Best Growth Stocks For 2017,Top Growth Stocks For 2017: May 2018

Wednesday, May 30, 2018

Top 10 Heal Care Stocks To Invest In Right Now

tags:GABC,APTS,COTV,BBRY,EDU,MDGL,OIS,CNSL,SNE,MHVYF,

In case you haven't noticed, there has been a great deal of strength in the stock market during the past month. But the rebound isn��t coming from the market leaders of the past several years. The high-flying growth stocks, especially in the tech sector, and the petroleum and resource stocks that once enjoyed great popularity have let many people down in recent months.

See Also: 8 Great Dividend Stocks for Retirees

What is holding up well are the mundane stocks that many consider too boring to own, such as food, utilities, and other consumer staples that represent the needs rather than the wants of the population. These are just the type of stocks that we have always highlighted in relation to dividend reinvestment plans (DRIPs), a form of investing that was created out of the strength of well-known consumer brands companies like Procter & Gamble, Colgate-Palmolive and Kimberly-Clark, along with diversified industrials like 3M Company, Boeing and Raytheon. Even in the oil sector, the size and resources of Exxon Mobil make it stand out in sharp contrast to the master limited partnerships (MLPs) that have been decimated.

Top 10 Heal Care Stocks To Invest In Right Now: German American Bancorp, Inc.(GABC)

Advisors' Opinion:

[By Logan Wallace]
German American Bancorp, Inc. (NASDAQ:GABC) – Research analysts at FIG Partners increased their FY2018 earnings estimates for German American Bancorp in a research report issued to clients and investors on Wednesday, May 2nd. FIG Partners analyst B. Martin now anticipates that the bank will post earnings of $2.02 per share for the year, up from their prior estimate of $2.00.

Top 10 Heal Care Stocks To Invest In Right Now: Preferred Apartment Communities, Inc.(APTS)

Advisors' Opinion:

[By Joseph Griffin]
Preferred Apartment (NYSE:APTS) – Research analysts at B. Riley raised their FY2018 earnings estimates for shares of Preferred Apartment in a note issued to investors on Thursday, May 3rd. B. Riley analyst C. Kucera now expects that the real estate investment trust will post earnings per share of $1.45 for the year, up from their prior estimate of $1.44. B. Riley currently has a “Hold” rating and a $16.00 price target on the stock. B. Riley also issued estimates for Preferred Apartment’s Q4 2018 earnings at $0.40 EPS.

Top 10 Heal Care Stocks To Invest In Right Now: Cotiviti Holdings, Inc. (COTV)

Advisors' Opinion:

[By Max Byerly]
Cotiviti Holdings, Inc. (NYSE:COTV) – Equities research analysts at Jefferies Group lowered their FY2018 earnings estimates for Cotiviti in a report issued on Wednesday, May 2nd. Jefferies Group analyst S. Dodge now expects that the business services provider will post earnings per share of $1.68 for the year, down from their previous estimate of $1.71. Jefferies Group also issued estimates for Cotiviti’s FY2019 earnings at $1.87 EPS.

Top 10 Heal Care Stocks To Invest In Right Now: BlackBerry Limited(BBRY)

Advisors' Opinion:

[By Shane Hupp]
BlackBerry (TSE:BB) (NASDAQ:BBRY)‘s stock had its “in-line” rating reiterated by analysts at Imperial Capital in a report issued on Wednesday.

Top 10 Heal Care Stocks To Invest In Right Now: New Oriental Education & Technology Group, Inc.(EDU)

Advisors' Opinion:

[By Lisa Levin] Gainers SemiLEDs Corporation (NASDAQ: LEDS) shares rose 35.8 percent to $4.55. EVINE Live Inc. (NASDAQ: EVLV) gained 28.8 percent to $1.04. The pay-TV home shopping company was named as a potential acquisition target by TechCrunch. According to the publication, Amazon.com, Inc. (NASDAQ: AMZN) is exploring ways of marketing its products and services to consumers beyond the internet. Sanmina Corp (NASDAQ: SANM) shares surged 19.1 percent to $33.00 as the company reported stronger-than-expected earnings for its second quarter on Monday. Heidrick & Struggles International, Inc. (NASDAQ: HSII) gained 14.9 percent to $37.22 as the company posted upbeat results for its first quarter. Santander Consumer USA Holdings Inc. (NYSE: SC) shares climbed 14 percent to $17.90 following upbeat quarterly earnings. Helix Energy Solutions Group, Inc. (NYSE: HLX) climbed 14 percent to $7.12 following strong quarterly results. Check-Cap Ltd. (NASDAQ: CHEK) gained 13.6 percent to $8.25. Atossa Genetics Inc. (NASDAQ: ATOS) rose 11.8 percent to $3.34. Atossa Genetics disclosed that it has Received positive interim review from the Independent Safety Committee in Phase 1 Topical endoxifen dose escalation study in men. Cadence Design Systems, Inc. (NASDAQ: CDNS) gained 11.6 percent to $40.99 after the company posted upbeat Q1 results and issued a strong Q2 forecast. Genprex, Inc. (NASDAQ: GNPX) climbed 11.2 percent to $4.9363. Mitel Networks Corporation (NASDAQ: MITL) rose 10.5 percent to $11.23 after the company agreed to be acquired by affiliates of Searchlight Capital Partners for $2.0 billion. Systemax Inc. (NYSE: SYX) rose 10.2 percent to $30.86. Sidoti & Co. upgraded Systemax from Neutral to Buy. Orchids Paper Products Company (NYSE: TIS) surged 9.2 percent to $7.13. Orchids Paper Products is expected to report its Q1 financial results on Wednesday, April 25, 2018. New Oriental Education & Technology Group Inc. (NYSE: EDU) rose
[By Max Byerly]
State of New Jersey Common Pension Fund D trimmed its position in shares of New Oriental (NYSE:EDU) by 11.5% during the 1st quarter, Holdings Channel reports. The institutional investor owned 148,379 shares of the company’s stock after selling 19,268 shares during the quarter. State of New Jersey Common Pension Fund D’s holdings in New Oriental were worth $13,005,000 at the end of the most recent reporting period.
[By Ethan Ryder]
New Oriental (NYSE: EDU) and The Graham (NYSE:GHC) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
[By Brian Stoffel]
As the old saying goes, "You need to strike when the iron is hot."�Management at New Oriental Education & Technology Group�(NYSE:EDU), a provider of in-person and online after-school tutoring in China, knows that the business is red-hot right now; it is striking by leveraging its balance sheet and growing brand by pushing a massive expansion throughout the Middle Kingdom.

Top 10 Heal Care Stocks To Invest In Right Now: Madrigal Pharmaceuticals, Inc. (MDGL)

Advisors' Opinion:

[By Ethan Ryder]
Shares of Madrigal Pharmaceuticals (NASDAQ:MDGL) have been assigned a consensus rating of “Buy” from the ten ratings firms that are presently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a hold recommendation and nine have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $159.86.

Top 10 Heal Care Stocks To Invest In Right Now: Oil States International Inc.(OIS)

Advisors' Opinion:

[By Joseph Griffin]
Oil States International (NYSE: OIS) is one of 14 public companies in the “Oil & gas field machinery” industry, but how does it contrast to its peers? We will compare Oil States International to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, dividends, earnings and risk.
[By Matthew DiLallo]
Shares of Oil States International, Inc. (NYSE:OIS) rallied on Thursday, rising�more than 14% by 2:45 p.m. EDT, after the company reported better-than-expected first-quarter results.

Top 10 Heal Care Stocks To Invest In Right Now: Consolidated Communications Holdings Inc.(CNSL)

Advisors' Opinion:

[By Ethan Ryder]
Consolidated Communications (NASDAQ: CNSL) is one of 74 public companies in the “Telephone communication, except radio” industry, but how does it contrast to its peers? We will compare Consolidated Communications to related companies based on the strength of its analyst recommendations, profitability, earnings, dividends, institutional ownership, valuation and risk.
[By Shane Hupp]
Get a free copy of the Zacks research report on Consolidated Communications (CNSL)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Heal Care Stocks To Invest In Right Now: Sony Corp Ord(SNE)

Advisors' Opinion:

[By Leo Sun]
When Sony (NYSE:SNE) launched the PlayStation VR, or PSVR, in late 2016, the headset seemed to have a shot at bringing virtual reality to mainstream gamers. The company enjoyed a large customer base with the PS4, the most popular current-gen gaming console, and the PSVR was cheaper than other high-end VR headsets on the market.
[By Benzinga News Desk]
Sony (NYSE: SNE) said it would pay about $2.3 billion to gain control of EMI, becoming the world’s largest music publisher in an industry that has found new life on the back of streaming services: Link
[By Stephan Byrd]
Sony (NYSE: SNE) and Knowles (NYSE:KN) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Top 10 Heal Care Stocks To Invest In Right Now: Mitsubishi Heavy Industries Ltd (MHVYF)

Advisors' Opinion:

[By SEEKINGALPHA.COM]
Major foreign competitors today now include the French firm Areva (OTCPK:ARVCF) and the Japanese firm Mitsubishi Heavy Industry (OTCPK:MHVYF). This is not a complete list but a focus on major players.

Tuesday, May 29, 2018

Top 10 Medical Stocks To Buy Right Now

tags:SHIP,PCH,ECOM ,NOAH,NWN,HEI,CVI,NBRV,FIBK,PRU,

Both in the U.S. and internationally, marijuana -- especially the medical variety -- is getting more and more accepted with time. So, how do you invest in it? In this episode of MarketFoolery, host Chris Hill talks with Motley Fool analyst Shannon Jones about how to get exposure to the fledgling industry without buying into the ever-risky penny stocks that make up most of the U.S. marijuana market.

Click play to learn about a few international companies for your marijuana stock watch list, as well as one domestic picks-and-shovels play; the exciting state of medical marijuana in the U.S. today; how growing acceptance of medical marijuana in the sports industry fits into changing views around the drug; and more.

A full transcript follows the video.

Top 10 Medical Stocks To Buy Right Now: Seanergy Maritime Holdings Corp(SHIP)

Advisors' Opinion:

[By Logan Wallace]
Seanergy Maritime (NASDAQ: SHIP) and Euronav (NYSE:EURN) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Top 10 Medical Stocks To Buy Right Now: Potlatch Corporation(PCH)

Advisors' Opinion:

[By Stephan Byrd]
Get a free copy of the Zacks research report on PotlatchDeltic (PCH)

For more information about research offerings from Zacks Investment Research, visit Zacks.com
[By Joseph Griffin]
PotlatchDeltic (NASDAQ:PCH) was upgraded by equities researchers at Vertical Research to a “hold” rating in a research report issued on Monday, The Fly reports. The analysts noted that the move was a valuation call.
[By Stephan Byrd]
Teachers Insurance & Annuity Association of America bought a new position in PotlatchDeltic (NASDAQ:PCH) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 78,505 shares of the real estate investment trust’s stock, valued at approximately $4,086,000. Teachers Insurance & Annuity Association of America owned approximately 0.19% of PotlatchDeltic at the end of the most recent reporting period.

Top 10 Medical Stocks To Buy Right Now: ChannelAdvisor Corporation(ECOM )

Advisors' Opinion:

[By Shane Hupp]
ChannelAdvisor (NYSE: ECOM) and Tyler Technologies (NYSE:TYL) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Top 10 Medical Stocks To Buy Right Now: Noah Holdings Ltd.(NOAH)

Advisors' Opinion:

[By Joseph Griffin]
Noah Coin (CURRENCY:NOAH) traded up 4% against the US dollar during the 1 day period ending at 23:00 PM E.T. on May 18th. During the last seven days, Noah Coin has traded down 6.4% against the US dollar. One Noah Coin token can now be purchased for about $0.0079 or 0.00000096 BTC on exchanges. Noah Coin has a market cap of $0.00 and $4.58 million worth of Noah Coin was traded on exchanges in the last day.
[By Max Byerly]
Noah Holdings (NYSE:NOAH)’s share price hit a new 52-week high and low on Monday . The stock traded as low as $57.81 and last traded at $57.76, with a volume of 191661 shares traded. The stock had previously closed at $54.50.
[By Lisa Levin]
Check out these big penny stock gainers and losers
Losers Petróleo Brasileiro S.A. - Petrobras (NYSE: PBR) fell 13.2 percent to $10.95 in pre-market trading after dropping 1.33 percent on Friday. Banco Santander, S.A. (NYSE: SAN) shares fell 8.7 percent to $5.33 in pre-market trading after declining 2.83 percent on Friday. Synchrony Financial (NYSE: SYF) fell 8 percent to $32.75 in the pre-market trading session. AerCap Holdings N.V. (NYSE: AER) shares fell 7.4 percent to $51.17 in pre-market trading. Inovio Pharmaceuticals, Inc. (NASDAQ: INO) fell 7.4 percent to $4.54 in pre-market trading. Tailored Brands, Inc. (NYSE: TLRD) fell 7 percent to $31.83 in pre-market trading. California Resources Corporation (NYSE: CRC) shares fell 6.5 percent to $30.29 in pre-market trading after dropping 10.60 percent on Friday. Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) fell 6.2 percent to $6.85 in pre-market trading. RedHill Biopharma Ltd. (NASDAQ: RDHL) fell 6 percent to $6.67 in pre-market trading. QEP Resources, Inc. (NYSE: QEP) shares fell 5.8 percent to $11.45 in pre-market trading after dropping 6.75 percent on Friday. Noah Holdings Limited (NYSE: NOAH) fell 5.5 percent to $61.53 in pre-market trading. CNH Industrial N.V. (NYSE: CNHI) shares fell 5.2 percent to $11.70 in pre-market trading

Top 10 Medical Stocks To Buy Right Now: Northwest Natural Gas Company(NWN)

Advisors' Opinion:

[By Joseph Griffin]
Get a free copy of the Zacks research report on Northwest Natural Gas (NWN)

For more information about research offerings from Zacks Investment Research, visit Zacks.com
[By Logan Wallace]
Get a free copy of the Zacks research report on Northwest Natural Gas (NWN)

For more information about research offerings from Zacks Investment Research, visit Zacks.com
[By Ethan Ryder]
NW Natural (NYSE:NWN) was downgraded by equities research analysts at ValuEngine from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

Top 10 Medical Stocks To Buy Right Now: Heico Corporation(HEI)

Advisors' Opinion:

[By Shane Hupp]
HEICO Corp (NYSE:HEI) shares hit a new 52-week high and low during mid-day trading on Monday . The company traded as low as $93.55 and last traded at $92.05, with a volume of 2840 shares changing hands. The stock had previously closed at $93.16.
[By Lisa Levin]

Companies Reporting After The Bell SpartanNash Company (NASDAQ: SPTN) is projected to post quarterly earnings at $0.53 per share on revenue of $2.38 billion. HP Inc. (NYSE: HPQ) is expected to post quarterly earnings at $0.48 per share on revenue of $13.57 billion. salesforce.com, inc. (NYSE: CRM) is projected to post quarterly earnings at $0.47 per share on revenue of $2.94 billion. HEICO Corporation (NYSE: HEI) is estimated to post quarterly earnings at $0.53 per share on revenue of $424.96 million. Safe Bulkers, Inc. (NYSE: SB) is expected to post quarterly earnings at $0.02 per share on revenue of $41.10 million
[By ]
HEICO (HEI) : "We're not buying anything at a 52-week high -- but on a pullback, you bet."

Cramer and the AAP team say the main factor contributing to Friday's weakness was Apple (AAPL) . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
[By ]
In the Lightning Round, Cramer was bullish on Align Technology (ALGN) , Regions Financial (RF) , Edwards Lifesciences (EW) , Qualys (QLYS) and HEICO (HEI) .
[By Shane Hupp]
Get a free copy of the Zacks research report on Heico (HEI)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Medical Stocks To Buy Right Now: CVR Energy Inc.(CVI)

Advisors' Opinion:

[By Stephan Byrd]
CVR Energy Inc. (NYSE:CVI) reached a new 52-week high and low during trading on Wednesday . The stock traded as low as $41.88 and last traded at $41.81, with a volume of 8024 shares trading hands. The stock had previously closed at $41.64.
[By Stephan Byrd]
CVR Energy Inc. (NYSE:CVI) shares hit a new 52-week high and low during mid-day trading on Monday . The stock traded as low as $39.74 and last traded at $39.69, with a volume of 566335 shares traded. The stock had previously closed at $36.81.

Top 10 Medical Stocks To Buy Right Now: Nabriva Therapeutics AG(NBRV)

Advisors' Opinion:

[By Ethan Ryder]
Nabriva Therapeutics (NASDAQ:NBRV) last issued its earnings results on Tuesday, May 8th. The biotechnology company reported ($0.36) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.59) by $0.23. Nabriva Therapeutics had a negative return on equity of 79.30% and a negative net margin of 600.34%. The firm had revenue of $7.55 million for the quarter, compared to analyst estimates of $1.27 million. equities analysts anticipate that Nabriva Therapeutics will post -1.9 EPS for the current fiscal year.
[By Lisa Levin]
Shares of Nabriva Therapeutics plc (NASDAQ: NBRV) were down 14 percent to $4.6666 despite positive topline results from Phase 3 Lefamulin trial.

Carver Bancorp, Inc. (NASDAQ: CARV) was down, falling around 21 percent to $6.59 after surging 201.37 percent on Thursday.
[By Chris Lange]
Nabriva Therapeutics PLC (NASDAQ: NBRV) watched its shares take a step back on Monday’s despite seeing positive results in its late-stage pneumonia trial. The stock was actually up about 17% before the markets opened, but this quickly reversed. The results come from the firm��s lefamulin evaluation against pneumonia (LEAP 2) Phase 3 clinical trial.
[By Lisa Levin]
Check out these big penny stock gainers and losers
Losers Natural Health Trends Corp (NASDAQ: NHTC) fell 7.8 percent to $19.80 in pre-market trading after rising 1.46 percent on Friday. Endocyte, Inc. (NASDAQ: ECYT) shares fell 6.6 percent to $11.41 in pre-market trading after climbing 4.18 percent on Friday. Quorum Health Corporation (NYSE: QHC) shares fell 6.2 percent to $5.15 in pre-market trading after tumbling 11.45 percent on Friday. Arcadia Biosciences, Inc. (NASDAQ: RKDA) fell 6.1 percent to $7.31 in pre-market trading after declining 3.35 percent on Friday. Boston Scientific Corporation (NYSE: BSX) fell 5.6 percent to $28.30 in pre-market trading. Evofem Biosciences, Inc. (NASDAQ: EVFM) fell 5.3 percent to $6.06 in pre-market trading after gaining 2.73 percent on Friday. Xerox Corporation (NYSE: XRX) shares fell 5.2 percent to $28.60 in pre-market trading. Xerox terminated its transaction agreement with Fujifilm and entered into a new agreement with Carl Icahn and Darwin Deason. JP Morgan downgraded Xerox from Overweight to Neutral. Cellcom Israel Ltd. (NYSE: CEL) fell 5.2 percent to $7.02 in pre-market trading. Cellcom is expected to release Q1 results on May 30, 2018. Perrigo Company plc (NYSE: PRGO) fell 4.5 percent to $74 in pre-market trading. Nabriva Therapeutics plc (NASDAQ: NBRV) shares fell 4 percent to $4.66 in pre-market trading

Top 10 Medical Stocks To Buy Right Now: First Interstate BancSystem Inc.(FIBK)

Advisors' Opinion:

[By Shane Hupp]
Get a free copy of the Zacks research report on First Interstate BancSystem (FIBK)

For more information about research offerings from Zacks Investment Research, visit Zacks.com
[By Max Byerly]
Massachusetts Financial Services Co. MA lifted its stake in shares of First Interstate BancSystem (NASDAQ:FIBK) by 4.6% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 464,152 shares of the financial services provider’s stock after acquiring an additional 20,543 shares during the period. Massachusetts Financial Services Co. MA owned 0.82% of First Interstate BancSystem worth $18,357,000 as of its most recent SEC filing.

Top 10 Medical Stocks To Buy Right Now: Prudential Financial Inc.(PRU)

Advisors' Opinion:

[By Zacks]
Well, given the growing demand for securitized mortgage deals, Barclays plans to package and sell these Irish loans over the next two months. The group of investors that has shown interest in buying residential mortgage backed securities includes M&G Investments, the investment management division of British insurer Prudential Plc (NYSE: PRU) and Pacific Investment Management Co. ("PIMCO").
[By Jason Hall, Chuck Saletta, and Reuben Gregg Brewer]
But that doesn't mean you need to make risky bets to capture solid returns, either, and buying solid companies at reasonable prices can help create a margin of safety and improve your returns, while also decreasing your risk of permanent losses. Three stocks that meet these criteria are small healthcare real-estate specialist�Caretrust REIT Inc�(NASDAQ:CTRE), financial services giant�Prudential Financial Inc�(NYSE:PRU), and energy behemoth�ExxonMobil Corporation�(NYSE:XOM).�
[By Max Byerly]
Flippin Bruce & Porter Inc. grew its holdings in shares of Prudential Financial (NYSE:PRU) by 2.3% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 61,363 shares of the financial services provider’s stock after acquiring an additional 1,391 shares during the period. Flippin Bruce & Porter Inc.’s holdings in Prudential Financial were worth $6,354,000 as of its most recent SEC filing.
[By Chuck Saletta]
Prudential Financial (NYSE:PRU) takes such pride in its rock-solid financial condition that it uses an actual rock -- the Rock of Gibraltar�-- as its corporate symbol. Prudential Financial backs up that claim with a balance sheet that has more cash, cash equivalents, and short-term investments�than total debt on it. It also claims a debt-to-equity ratio around 0.6 and a current ratio around 1.0�, which are further signs of a solid financial condition.

Sunday, May 27, 2018

How Much Does Warren Buffett Get From Social Security?

Warren Buffett is one of the wealthiest people in the world, with a stake in Berkshire Hathaway that's worth tens of billions of dollars. Buffett is just about the last person who needs the financial support that Social Security provides to retirees, but the Social Security program doesn't have any limits based on a recipient's financial means.

At age 87, Buffett has been eligible to receive Social Security for a long time. Thanks to the highly predictable way in which the Berkshire CEO gets paid, it's possible to run the numbers and get a rough idea of how much the Oracle of Omaha should be eligible to receive from Social Security.

Warren Buffett, with some people out of focus behind him.

Image source: The Motley Fool.

Why you can guess what Buffett gets from Social Security

The reason why it's possible to get an idea of what Buffett gets in Social Security benefits is that the Social Security Administration bases its monthly retirement payments on a person's career earnings. The SSA looks at a person's 35 top-earning years after adjusting each annual amount for inflation, and it then calculates what's known as average indexed monthly earnings. From there, the figure goes through an SSA formula that determines a person's primary insurance amount. That's the base amount that a retiree is entitled to receive at full retirement age, but the actual payment can be higher or lower depending on whether the person claims benefits later or earlier than full retirement age.

Buffett has been very public in revealing his salaries over the years. In Berkshire's proxy statement for its annual meeting in 1999, the company revealed that Buffett had earned $100,000 each year for the past 18 years, dating back to 1981. That practice has continued to the present day.

Prior to that, reports are somewhat less complete. However, some secondary sources refer to Buffett getting a smaller $50,000 salary from Berkshire for at least a couple of years prior to 1981. Others point to Buffett's initial job working for Ben Graham's partnership, receiving a starting salary of $12,000 a year in 1954.

Fortunately, it's not necessary to know exactly how much Buffett made in order to calculate what he probably gets from Social Security. That's because the SSA has already done it for us, because Buffett is one of a select few people who has consistently earned more than the maximum amount on which Social Security charges payroll taxes. It wasn't until 2008 that the wage base limit on Social Security exceeded Buffett's $100,000 Berkshire salary, thus guaranteeing that for at least 28 years, Buffett earned the maximum amount. A $12,000 salary in the 1950s would have been well above the wage limit for Social Security at that time, as would a $50,000 salary in the 1970s. It's therefore reasonable to assume that Buffett's earnings record entitles him to the maximum benefit.

The choices Buffett would have had

Like anyone, Buffett had to choose when to take Social Security benefits. If he'd claimed at the earliest available age of 62 back in 1992, then the maximum initial monthly payment would have been $860 per month. Thanks to cost of living adjustments along the way, that number would work out to $1,527 per month in Social Security benefits today.

Based on his birth year of 1930, Buffett's full retirement age was 65. If he waited until then before claiming benefits, then he would have gotten an initial monthly amount of $1,199 in 1995. That would have grown to $1,961 per month today.

Yet Buffett didn't really have much need to collect Social Security, and so it would have been reasonable for him to wait until the latest possible age of 70 before claiming. If he did so, then he would have been entitled to an initial monthly benefit of $1,752 in 2000. Over the following 18 years, cost of living adjustments would have boosted that amount to $2,562 per month.

The interesting thing about Buffett and Social Security

Buffett has ideas about dealing with Social Security's financial issues. One solution he's suggested has been to eliminate the wage base limit on Social Security taxes, thereby increasing the amount of revenue that the program brings in. In particular, those executives who make millions of dollars in salaries and other compensation would see the amount they had to pay into Social Security through payroll taxes skyrocket.

Yet what's somewhat ironic about that idea is that Buffett wouldn't have had to pay markedly more in payroll taxes under his proposal. Taxes on the full $100,000 would have amounted to $6,200 annually since 1990, with lower tax rates having applied in earlier years. Yet because he kept his salary low compared to his peers, he never would've had to pay the gargantuan taxes that executives with seven- or eight-figure salaries would pay under his proposal.

It's amusing to think of the billionaire investor getting a $2,562 check from Social Security deposited into his bank account every month. Yet Buffett's experience shows how every worker, rich or poor, stands to benefit from the Social Security program.

Saturday, May 26, 2018

Best Buy (BBY) Issues Q2 Earnings Guidance

Best Buy (NYSE:BBY) issued an update on its second quarter earnings guidance on Thursday morning. The company provided EPS guidance of $0.77-0.82 for the period, compared to the Thomson Reuters consensus EPS estimate of $0.81. The company issued revenue guidance of $9.1-9.2 billion, compared to the consensus revenue estimate of $9.00 billion.Best Buy also updated its FY19 guidance to $4.80-5.00 EPS.

Shares of BBY stock opened at $70.90 on Friday. Best Buy has a one year low of $51.61 and a one year high of $79.90. The company has a market capitalization of $21.41 billion, a P/E ratio of 16.04, a P/E/G ratio of 1.07 and a beta of 0.91. The company has a current ratio of 1.26, a quick ratio of 0.59 and a debt-to-equity ratio of 0.22.

Get Best Buy alerts:

Best Buy (NYSE:BBY) last posted its quarterly earnings results on Thursday, May 24th. The technology retailer reported $0.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.74 by $0.08. The firm had revenue of $9.11 billion for the quarter, compared to analysts’ expectations of $8.75 billion. Best Buy had a return on equity of 32.68% and a net margin of 2.37%. The company’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.60 EPS. sell-side analysts anticipate that Best Buy will post 4.98 EPS for the current fiscal year.

A number of equities analysts have issued reports on BBY shares. Zacks Investment Research upgraded Best Buy from a hold rating to a strong-buy rating and set a $84.00 price target on the stock in a report on Friday, February 2nd. Barclays increased their price target on Best Buy from $80.00 to $85.00 and gave the stock an overweight rating in a report on Tuesday, January 30th. ValuEngine upgraded Best Buy from a hold rating to a buy rating in a report on Friday, February 2nd. Piper Jaffray Companies increased their price target on Best Buy from $68.00 to $83.00 and gave the stock an overweight rating in a report on Monday, February 26th. Finally, Citigroup restated a neutral rating and set a $74.00 price target (up from $69.00) on shares of Best Buy in a report on Friday, February 16th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating, nine have issued a buy rating and one has given a strong buy rating to the company’s stock. Best Buy has an average rating of Hold and an average price target of $71.50.

In related news, insider Patricia H. Walker sold 1,569 shares of the stock in a transaction on Monday, March 19th. The stock was sold at an average price of $68.72, for a total value of $107,821.68. Following the completion of the sale, the insider now directly owns 35,552 shares of the company’s stock, valued at approximately $2,443,133.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Shari L. Ballard sold 3,475 shares of the stock in a transaction on Tuesday, March 13th. The shares were sold at an average price of $72.45, for a total value of $251,763.75. Following the completion of the sale, the insider now directly owns 116,785 shares of the company’s stock, valued at $8,461,073.25. The disclosure for this sale can be found here. Over the last quarter, insiders sold 365,639 shares of company stock worth $25,651,834. 0.75% of the stock is owned by company insiders.

About Best Buy

Best Buy Co, Inc operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide consumer electronics, including digital imaging, health and fitness, home automation, home theater, and portable audio products; computing and mobile phones, such as computing and peripherals, networking products, tablets, smart watches, and e-readers, as well as mobile phones comprising related mobile network carrier commissions; and entertainment products, including drones, movies, music, and technology toys, as well as gaming hardware and software, and virtual reality and other software products.

Earnings History and Estimates for Best Buy (NYSE:BBY)

Wednesday, May 23, 2018

General Dynamics: Adequate Growth Potential

Recap of Q1 Operating Results Total revenue $7.535B (+1.3% YoY); EPS $2.65 (+6.9% YoY) Segment breakdown:

Aerospace: Revenue $1.825B (-12.0% YoY); EBIT $346m (-21.2% YoY)

Combat Systems: Revenue $1.44B (+11.9%); EBIT $224m (+9.3% YoY)

Information Systems and Technology: Revenue $2.236B (+4.2% YoY); EBIT $247m (+4.7% YoY)

Marine Systems: Revenue $2.034B (+5.2% YoY); EBIT $184m (+14.3% YoY)

Strengths

General Dynamics (NYSE:GD) has a strong market positioning. The increase in military budget under the Trump administration has been beneficial industry-wide. In February 2018, the U.S. Navy submitted a budget request of $194.1B, as part of the broader fiscal 2019 defence budget worth $716B. The submission includes a $58.5B procurement budget for purchasing 10 new ships, including two submarines, and 54 ships across the Future Years Defence Plan (FYDP). General Dynamics, being one of the only two contractors in the world equipped to build nuclear-powered submarines and a prime military shipbuilder, is expected to benefit from the increased budget.

Outside the US, GD also has a robust pipeline in Europe and the Middle East. Moreover, Asia-Pacific has recently emerged as a region for increased demand for defence equipments, as developing countries step up procurement efforts, thereby offering enhanced expansion option for defence contractors.

During the first quarter of 2018, the company��s European-based business witnessed a solid order activity throughout Europe and into parts of Africa. Notably, General Dynamics�� military vehicle production revenue increased substantially in the reported quarter driven by the ramp up of several international production programs, including U.K. AJAX armoured fighting vehicles, Romanian Piranha 5-wheeled armoured vehicles and the upgrade of LAVs for the Government of Canada.

The balance sheet strength of the company remains robust, with a debt-to-capital ratio at the lower end of the industry spectrum (see chart below). This implies a larger possible borrowing capacity for the company, no matter for internal restructuring or further acquiring subcontractors to enhance its supply chain. Therefore, the company is in a competitive position among its peers to generate positive revenue and profit growth.

Chart GD Debt To Capital (Quarterly) data by YCharts

Weaknesses

The company operates in a highly competitive market. There has been a growing trend of specialisation within the industry (e.g. Boeing (BA) in missile systems (ICBMs), Lockheed Martin (LMT) in jet fighters, L3 (LLL) in communications, Northrop Grumman (NOC) in UAS and back-end missile systems, Raytheon (RTN) in front-end missile systems and communications). This could have a negative impact to more diversified contractors like GD, as the competitive advantage of the other contractors might tighten contract margins.

The company is tightly correlated to the cyclical aerospace market, which is currently in a recovery phase. However, with rising Treasury yields and tightening market risk premiums, the general market seems to be pricing in a correction in late 2018 or early 2019. Moreover, the company's share price may be highly event-driven at times and highly sensitive to geopolitics. The gradual thawing tensions in Korea and uncertainty over the Middle East pose as downside risks. Also, the company��s dependence on international sales for a significant portion of its revenue exposes it to currency risks and other geo-political risks.

General Dynamics�� share price has underperformed the broader market over the last twelve months. The company's share price has gained 3.4% compared with the broader industry��s 30% rally (see chart 1 below). GD's historical EV/revenue ratio (see chart 2 below) reflects the fact that investor sentiment is not consistent with the industry-wide upward trend, despite relatively flat revenue growth. There is also a possible substitution bias from investors towards the other defence contractors (notably Boeing, Lockheed Martin, Northrop Grumman and Raytheon) that have shown better operating results and growth drivers.

Chart GD data by YCharts Chart GD EV to Revenues (TTM) data by YCharts

Key Developments

On Apr 3, 2018, General Dynamics completed its acquisition of CSRA Inc. for $9.7 billion. CSRA has been integrated into General Dynamics Information Technology (GDIT), which in turn has created a premier provider of high-tech IT solutions to the government IT market. The acquisition strengthens GDIT's competitive advantage and consequently, we may expect General Dynamics to secure more government IT contracts. Impressively, the takeover is projected to add approximately $3.6 billion of revenue in 2018 to the company��s Information Systems and Technology (IS&T) group��s revenue, which is already the largest operating segment.

Moreover, on Apr 11, 2018, General Dynamics announced that it has entered into a binding agreement to acquire Hawker Pacific, a leading provider of integrated aviation solutions across Asia Pacific and the Middle East, for $250 million. This deal is likely to enable the company provide its Gulfstream services in places where it does not have standalone Gulfstream support facilities. This would streamline and consolidate the supply chain, thereby boosting revenue growth and profitability margins, of GD's Aerospace segment, which has been lagging relatively to the company's other operating segments.

Lastly, the G500 and G600 jets have made significant progress in launching to the commercial market. GD has recently begun the last phase of flight testing for its G500 aircraft. After 300-hour function and reliability testing, the programme will then be pending final document approval by the FAA. GD will begin pilot training with FlightSafety in August and commence deliveries later this year, expecting to duly meet its 2018 G500 planned customer deliveries. The G600 is benefiting from all of these efforts and will wrap up its certification in the second half of 2018. The company aims at beginning deliveries of the G600 jet in 2019.

Investment Thesis

Even though the flat change in valuations relative to peers might signal negative investor sentiment, we do see it as a possible value opportunity to enter the market, as there are positive growth drivers towards the business, in particular the recent acquisitions of CSRA and Hawker Pacific. The fundamentals and growth outlook are also robust, while the market has adequately priced the growth prospects (see chart below).

Chart GD PEG Ratio (Forward) data by YCharts

Looking at more straightforward fundamental ratios, GD remains at the lower end of the multiples spectrum.

Chart GD PE Ratio (Forward) data by YCharts Chart GD EV to EBITDA (Forward) data by YCharts

Furthermore, dividend growth remains robust and forward dividends remain robust and consistent.

Chart GD Dividend Growth (Annual) data by YCharts

Our target price for General Dynamics is $220, implying a P/E of 20.75x and EV/EBITDA of 13.52x. The target price is based on a cash flow forecast model. The short-term outlook is Overweight, but mid- to long-term outlook is Neutral. The valuation still slightly lags behind the respective industry averages of 26.20x and 13.88x, but the growth prospects of GD is not as lucrative as its peers, hence the neutral long-term outlook.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Tuesday, May 22, 2018

Fortnite Launches Ranked Play, Commits $100M to eSports

By Gene Munster of Loup Ventures

Fresh off of Fortnite’s first foray into ranked play on May 17th, Epic Games has committed $100M in prize pool money for Fortnite competitions in the 2018-2019 season. The ranked play ‘Solo Showdown’ game mode was available to players from May 17th through May 21st as a limited time mode (LTM). Players were given points in each of their first 50 matches in the game mode, earning 100 points for a win, down to 25 points for finishing in the bottom 25% of a match. Winning 50 games in a row (a near impossible task) would earn a player 5000 points.

Fortnite has yet to announce the winner of Solo Showdown. First place earns 50,000 V-bucks, Fortnite’s in-game currency, a value of about $500. We’ll update this note as soon as we find out the results.

Despite Fortnite’s popularity and financial success, there is still not a large eSports presence for Fortnite, or the battle royale game mode itself. NewZoo, a gaming market researcher, tracks hours watched on Twitch and Youtube. Below are the hours for April 2017.

Source: Loup Ventures

Fortnite and PUBG, the two most popular Battle Royale games, are seeing a lot of success for total hours watched. On the eSports side, however, Fortnite and PUBG are far behind multiplayer online battle arena (MOBA) games, Dota 2 and League of Legends, as well as first-person team-based shooters (FPS) game, Overwatch, and CS:GO. This makes sense, as Battle Royale games are relatively new, and there isn’t much structure in place as it relates to eSports.

Seeing the success that Fortnite has had overall, and their introduction of ranked gameplay, it’s clear that they are gearing up to further develop eSports around the game and the genre. On Monday, Epic Games announced that they will provide $100M in prize money for competitions. We think eSports popularity for Fortnite will help bring eSports more mainstream. The Battle Royale game mode will bring a unique format to eSports competitions, as multiple teams will compete in a single match, which is different than the typically head-to-head team matchups for MOBA and FPS games. Fortnite’s financial commitment reiterates their belief in the long-term outlook for eSports surrounding the Battle Royale game mode.

While other game developers are adding Battle Royale game modes to their existing franchises, we don’t think that they will generate the same authentic interest that Fortnite has. Over the past few months, Fortnite has become a cultural sensation, as demonstrated by its total viewership hours and presence on social media platforms, sports celebrations, and pop culture references. While adding Battle Royale is a positive move for existing developers, it will be hard to replicate the same level of success that Fortnite has achieved.

Disclaimer: We actively write about the themes in which we invest: virtual reality, augmented reality, artificial intelligence, and robotics. From time to time, we will write about companies that are in our portfolio. �Content on this site including opinions on specific themes in technology, market estimates, and estimates and commentary regarding publicly traded or private companies is not intended for use in making investment decisions. We hold no obligation to update any of our projections. We express no warranties about any estimates or opinions we make.

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Should Major Video Game Publishers Be Worried About Fortnite?

Monday, May 21, 2018

Calling For A Blue-Ribbon Panel On The Retirement Crisis

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Remember Studebakers? In 1963, their troubled automaker shut down its U.S. operations and more than 4,000 workers lost some or all of their promised pensions. Thousands of workers elsewhere found themselves in similar straits when their firms walked away from underfunded pensions. President Kennedy created a blue-chip commission to figure out how to prop up the pension system. And a decade later, President Ford signed into law the Employee Retirement Income Security Act, federally insuring private pension plans and regulating pensions and most employee benefits.

&l;strong&g;Time for a Retirement Crisis Commission?&l;/strong&g;

That was the last time Congress negotiated a broad-based overhaul of the private sector&a;rsquo;s retirement rules. Some policymakers think it&a;rsquo;s again time for a blue-ribbon retirement panel &a;mdash; this time, looking at how to boost retirement security in America. Call it the Retirement Crisis Commission.

Senators Todd Young (R-Ind.) and Cory Booker (D-N.J.) are the sponsors of the bipartisan legislation. They&a;rsquo;re calling for the formation of a federal retirement commission with a mandate to design ways to improve private sector retirement security. The conservative and progressive senators joined forces to draw up the initiative following the recommendation in a sobering 2017 Government Accountability Office report on the retirement system.

&l;strong&g;Also on Forbes:&l;/strong&g;

&a;ldquo;My hope is that the commission would deliver to Congress some ideas that are bold and ambitious,&a;rdquo; says Young. &a;ldquo;It has been 40 years since Congress has looked at private retirement security in a comprehensive manner. In the intervening decades the economy has been transformed.&a;rdquo;

I hope his peers listen and the blue-ribbon panel gets greenlit.

&l;strong&g;America&s;s Retirement System: Complex and Byzantine&l;/strong&g;

A federal commission would at least open up the prospect that Congress might help modernize a system that has evolved (devolved, really) into an overly complex, byzantine and woefully inadequate safety net for America&a;rsquo;s retirees.

&a;ldquo;We now have a huge, huge mess,&a;rdquo; says Eugene Steuerle, senior fellow at the Urban Institute, a Washington, D.C. think tank. &a;ldquo;The big issue for me is the retirement system doesn&a;rsquo;t do what it&a;rsquo;s supposed to do &a;mdash; protect people. In that sense, it&a;rsquo;s a failure.&a;rdquo;

The biggest failing? About 40% of full-time private-sector employees lack access to an employer-sponsored retirement savings plan. They typically work at small-to medium-sized businesses. The main reason small business owners say they don&a;rsquo;t offer a retirement savings option is the expense of setting up and managing the plans, according to a 2017 Pew survey.

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Contingent workers &a;mdash; think freelancers, independent contractors and gig economy workers &a;mdash; also can&a;rsquo;t participate in an employer-sponsored retirement plan because they&a;rsquo;re not employees. The same holds for most part-time workers.

Even people who can sign up a 401(k) retirement plan at work often find it hard to save and manage their portfolio. That helps explain the dismal figures you&a;rsquo;ve no doubt seen on how little so many workers have in retirement savings.

&l;strong&g;From Employers&s; Risk to Yours&l;/strong&g;

Over the past four decades, companies have moved away from traditional pensions where employers bear the investment risk and commit to a fixed payout of money, typically based on a salary and years-of-service formula. With those plans, employees get a steady pension income &a;mdash; essentially a monthly paycheck &a;mdash; during their retirement years.

Some members of the leading edge of the boomer generation have this kind of pension in retirement or will (although the size of their benefits may have been frozen some years back). &a;nbsp;But most younger boomers, Gen Xers and millennials only know about pensions from history books or tales from earlier generations in their families.

These days, of course, companies that offer retirement plans have shifted to defined contribution retirement savings plans such as 401(k)s. Here, employees absorb all the responsibility and risk of saving for retirement. They decide how much to invest (within regulatory limits) and where to invest (within the menu of choices in the plan).

&l;strong&g;The Crumbling Pillars of Retirement&l;/strong&g;

Trouble is, as behavioral economists have documented, most of us are bad at saving and investing regularly and for the long haul. And we&a;rsquo;re getting worse. Personal savings rates are about half what they were the 1970s and 1980s.

Not only do half of private-sector workers fail to participate in retirement savings plans (adding together those without the option and those who don&a;rsquo;t join). Worse, about a quarter of plan participants borrow or withdraw from their retirement savings; many don&a;rsquo;t put the money back.

And did I mention that the Social Security trust fund is expected to be unable to fully pay promised benefits 16 years from now, in 2034?

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Taken altogether, the three pillars of America&a;rsquo;s retirement savings system are crumbling &a;mdash; employer pensions or retirement savings; personal savings and Social Security.

&l;strong&g;How the Blue-Ribbon Panel Would Work&l;/strong&g;

That brings me back to the blue-ribbon commission. It would include the U.S. Secretaries of Labor, Treasury and Commerce; two presidential appointments; six appointees from the U.S. Senate and six from the U.S. House of Representatives. They would focus on the private sector (Social Security might be a panel for another day).

Young told me he wants the experts to think big. They should consider retirement issues facing the mobile workforce, gig economy workers and part-time employees, he says. Young wants the panel to explore what kinds of nudges, incentives and other insights from behavioral economists might encourage Americans to save more for retirement.

The commission would explore policies to emulate from other countries, such as the mandatory retirement savings systems of Australia and several Scandinavian nations. &a;ldquo;I&a;rsquo;ve read about some of the reforms to government programs in the Nordic countries which are more innovative than people are aware of,&a;rdquo; Young says.

&l;strong&g;Many Worthy Ideas to Consider&l;/strong&g;

There&a;rsquo;s no shortage of good ideas for the panel to review.

For instance, the &a;ldquo;auto-IRA proposal&a;rdquo; by J. Mark Iwry of the Brookings Institution and David John of AARP would make savings more automatic and accessible for the millions of workers not covered by employer-sponsored retirement plans. Economist Teresa Ghilarducci, of the New School for Social Research, and Hamilton James, executive vice chairman of the money-management giant Blackstone, favor Guaranteed Retirement Accounts. With those, any employer not offering a 401(k) would need to participate in, and contribute to, a government-sponsored retirement savings plan.

And one idea long floated by retirement security experts is attaching an Individual Retirement Account or 401(k) to each Social Security account.

Even if Congress approves a retirement commission, the risk is that its report will get shelved. That&a;rsquo;s what happened to the retirement system study launched in 1979 by President Carter. Its recommendations &a;mdash; including a mandatory universal private pension &a;mdash; were released in 1981.

We can&a;rsquo;t wait any longer.