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Over 3 million steam cleaners are under recall because they can spew hot water and cause burns 2024-07-18 17:39:04+00:00 - NEW YORK (AP) — Some 3.3 million steam cleaners are being recalled across North America due to a burn hazard that has resulted in consumers reporting more than 150 injuries. Select models of Bissell-branded “Steam Shot Handheld Steam Cleaners” can spew hot water or steam while the products are in use or being heated up, according to notices Thursday from the U.S. Consumer Product Safety Commission and Health Canada. That poses a risk of burns to users. Bissell has received a 183 reports of hot water or steam expelling from the products. That includes 157 reports of minor burns, the regulators noted, with 145 injuries reported in the U.S. and 12 in Canada as of June 4, according to Health Canada. Consumers are urged to immediately stop using the now-recalled steam cleaners and contact Grand Rapids, Michigan-based Bissell for a refund or store credit. Impacted customers will have a choice between $60 (CA$82) in store credit or a $40 (CA$55) refund for each. The recalled steam cleaners, which were made in China, can be identified by model numbers — listed on Bissell’s website. There, consumers can also find more information about registering for the recall and follow instructions for cutting the products’ cord and uploading photos. On its site, Bissell said that “safety is our top priority,” later adding that the company chose to voluntarily recall these steam cleaners “out of an abundance of caution.” The Bissell steam cleaners under recall were sold at major retailers including Target and Walmart, as well as online at sites like www.bissell.com and Amazon, from August 2008 through May 2024. An estimated 3.2 million were purchased in the U.S. Nearly 355,000 were sold in Canada.
Ed Davey says Post Office lied to him and apologises to Alan Bates 2024-07-18 17:35:00+00:00 - The Liberal Democrat leader, Ed Davey, has accused the Post Office of lying to him, as he apologised to Sir Alan Bates for turning down a meeting as the former post office operator tried to expose the scandal over the Horizon computer system. Davey, who served as postal affairs minister between 2010 and 2012, was giving evidence at the inquiry into the wrongful prosecution of hundreds of post office operators on the basis of flawed accounting data from Horizon. It is often described as one of the greatest miscarriages of justice in British history. “I now know I was being lied to,” Davey told the inquiry on Thursday. “I’ve followed this inquiry and it’s pretty clear that what they told my officials was not true.” Davey named the former Post Office chief executive Paula Vennells and former managing director David Smith as some of the “people passing information which was untrue”, although he stopped short of accusing them personally of lying. “Someone senior” in the Post Office must have known the truth, he said. The Post Office Horizon inquiry has heard testimony from hundreds of witnesses over more than two years, ranging from affected post office operators to executives and board members at the state-owned body, as well as the politicians who ultimately controlled it. Davey and Pat McFadden – now a member of the cabinet and a predecessor to Davey as postal minister under the previous Labour government – both said that ministers were reliant on accurate and truthful briefings from civil servants. Both said they would have acted differently in their dealings with the Post Office had they known the truth. They appeared before the inquiry after successful general election campaigns. Davey led the Liberal Democrats to their record number of seats, while McFadden masterminded Keir Starmer’s election victory and is now a senior member of the cabinet, as chancellor of the duchy of Lancaster. Both also offered ideas for the future of the Post Office. In written evidence Davey said he favoured mutualisation of the business, meaning it would be owned by employees or customers rather than the state. He also favoured a “duty of candour” for public officials. McFadden asked the inquiry to consider whether it should recommend creating an inspectorate to oversee bodies such as the Post Office, which are owned by the government but run at arm’s length. Davey also faced questions – at times uncomfortable – about his actions as the effects of the scandal were becoming clear. On the day he was appointed as postal affairs minister in May 2010, he received a letter from Bates asking for a meeting to discuss the wrongful prosecutions. Bates, whose story was dramatised this year in the ITV drama Mr Bates vs the Post Office, wrote that the Post Office was acting as “judge, jury and executioner” for post office operators who it was prosecuting – wrongfully – for fraud because their accounts did not match cash balances. Davey’s response was: “I do not believe that a meeting would serve any useful purpose.” Davey told the inquiry that he apologised to Bates for his “terse” response, said that he did not remember reading the first letter, and said that at that time he relied on his officials to make judgments as to whether it was necessary to meet. They eventually met in October 2010. skip past newsletter promotion Sign up to First Edition Free daily newsletter Our morning email breaks down the key stories of the day, telling you what’s happening and why it matters Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Davey and McFadden both told the inquiry that they were reliant on the accuracy of the information being passed to them from civil servants and the Post Office itself when responding to those people with concerns. That included then chancellor George Osborne and Priti Patel, who would later become home secretary, among several MPs whose constituents had been targeted for prosecution. The post office operators were often forced to pay thousands of pounds from their own pockets to make up supposed shortfalls. Some of the first warnings of problems with the Horizon system came in 2009 from MPs and the Computer Weekly magazine. McFadden’s department asked the Post Office to respond to those concerns, but he told the inquiry that he now wishes he had questioned the Post Office more over its “emphatic” defence of its flawed accounting software. He said “wrong” information on the Horizon system had had “terrible human consequences”. “The Post Office kept insisting that the system was robust and fit for purpose,” McFadden said. “If you ask me over the whole story here, of course I wish I had done more to question these responses. I believe if I had, I would have got the same response from the Post Office.”
'We're close to the end': Biden world braces for the possibility that the president will step aside 2024-07-18 17:12:00+00:00 - WASHINGTON — President Joe Biden’s political world is collapsing. Top allies have either publicly or privately called on him to step aside. Major donations have fallen off a cliff. Grassroots fundraising is not keeping up with the demands of a campaign that needs to aggressively scale up three months before the presidential election. Members of his own re-election effort have already declared he has no path to victory. Since a disastrous debate in Atlanta upended the trajectory of his campaign three weeks ago, Biden has again and again attempted to dig in, bucking efforts to dislodge him from power. But there is now a palpable sense that the ground has shifted underneath him, according to five people with knowledge of the situation, even among some of the president’s most defiant internal backers who now believe the writing is on the wall. “We’re close to the end,” a person close to Biden said. That person, who previously doubted Biden would ever step aside, acknowledged that it’s still the president’s decision but joined in the array of Biden allies who say he is nearing a point of no return. As the extraordinary events have unfolded, the president tested positive with Covid on Wednesday and retreated to his vacation home in Rehoboth Beach, Delaware, taking him off the campaign trail. Once again, it offered a sharp contrast with former President Donald Trump, who, even after his brush with death on Saturday, will appear at a raucous coronation at the Republican National Convention in Milwaukee on Thursday night. Also Wednesday, Rep. Adam Schiff, who is running for the Senate in California, made a remarkable public call for the president to abandon the nomination, a move that ended up exposing that other Democratic leaders — including Reps. Hakeem Jeffries and Nancy Pelosi, and Sen. Chuck Schumer — had brought dire concerns, supported by polling, to the president indicating that he risked taking down control of Congress with him if he stayed on the same path. In the hours after the assassination attempt on Trump last weekend, some Democrats said — even feared — that the calls for Biden to step aside would be “frozen” as the president dealt with a national crisis. But that faded quickly. Some allies now say that the shooting, which has caused an even more intense rallying around Trump within his party, only makes it more glaringly obvious that the nagging narrative of whether Biden is on a cognitive decline cannot win the White House. A person with knowledge of the projections said the Biden campaign now expects it will raise only 25% of the big donor money it had originally projected to raise in July — that’s a further downgrade from the expectation last week that large-dollar fundraising would be down by as much as 50%. The money has “dried up,” this person said. One Democratic lawmaker on Wednesday said if Biden didn’t agree to step aside, the cacophony of calls will grow only louder, with more lawmakers expected to urge him to do so. The lawmaker called it a “sad moment” for the party. A sense of reality is beginning to wash over some of the president’s top campaign lieutenants, who have endured streams of phone calls from donors and one-time supporters flagging that they can no longer back Biden. A person who spoke with a senior campaign official said a sense of a new reality has fallen over the campaign. “They’re finally realizing: It’s a when, not if,” the person said. There has been a shift behind the scenes in the president’s openness to stepping aside, according to multiple people close to Biden, despite his aggressive insistence in public appearances and private phone calls with allies that he is not going anywhere. Biden had already, in the opinion of some aides, shown signs that if he were convinced there was no path “he would not go forward with this,” a person with knowledge of the president’s conversations with aides said. NBC News previously reported that Biden’s private conversations with aides had grown more “reality-based” and included talk of how his legacy could be defined by his having a prolonged stalemate with his own party or by losing the White House to Donald Trump, who Biden has repeatedly warned is a danger to American democracy. Outwardly, campaign officials remain steadfast in their assertion that Biden isn’t going anywhere. “The president is feeling fine. He is self-isolating in Delaware,” Quentin Fulks, principal deputy campaign manager for the Biden campaign, said at a news conference in Milwaukee. “Our campaign is not working through any scenarios where President Biden is not the top of the ticket. He is and will be the Democratic nominee.” Since a televised debate on June 27 at which Biden appeared confused, at times unable to complete a sentence, his every move has been scrutinized. Biden accelerated his usually severely limited media exposure to demonstrate he can make a cogent argument for re-election. “I’m old,” Biden told NBC News’ Lester Holt in an interview on Monday. “But I’m only three years older than Trump, No. 1. And No. 2, my mental acuity’s been pretty damn good. I’ve gotten more done than any president has in a long, long time in 3½ years. So I’m willing to be judged on that.” But rather than allay concerns, Biden’s exposure only intensified them among allies. Biden has stumbled, mixing up names and seeming to lose his train of thought. Before coming off the trail on Wednesday, for instance, Biden mistakenly called Nevada’s Democratic state attorney general the state’s governor, who is a Republican, according to a pool report of the exchange. “Sad,” is how one close Biden ally described the dynamic around the president. “There’s no excitement in this campaign at all,” another ally said. Some Biden aides have cautioned that the campaign has picked up on some voter anger in battleground states over the feeling that people are trying to chase the president they voted for off the ballot. And even as calls for Biden to step aside grow louder, a campaign official said that, as of this past weekend, no one had yet presented a detailed plan for an alternative to Biden. In an interview that aired Wednesday evening, Biden said that, in addition to being shown that there was no path to victory, there was something else that would prompt him to re-evaluate his campaign. “If I have some medical condition that emerged,” Biden suggested. “If somebody, if the doctors came to me and said you got this problem, that problem.” Carol E. Lee and Monica Alba reported from Washington; Natasha Korecki reported from Chicago.
Here's who bought the record-setting "Apex" Stegosaurus for $45 million 2024-07-18 16:58:00+00:00 - Dinosaur skeleton found in U.S. finally finds new home in Europe Hedge fund billionaire Ken Griffin, founder and CEO of Citadel, has been revealed as the buyer of the record-setting "Apex" Stegosaurus skeleton at a Sotheby's auction yesterday. Griffin purchased the fossil, billed by Sotheby's as "the finest to ever come to market," for almost $45 million, a record, a person familiar with the matter told CBS MoneyWatch. The sale price far exceeds the estimate of $4 million to $6 million that Sotheby's had assigned to the lot. Described as a mounted Stegosaurus skeleton, the exact sale price was $44.6 million, marking a new record for dinosaur fossils. Griffin plans to explore loaning the specimen to a U.S. institution, and wants to share it with the public, as opposed to hanging it as a trophy exclusively for private viewing. "Apex was born in America and is going to stay in America!" Griffin said following the sale, according to a person familiar with the matter. In 2017, Griffin underwrote an historic dinosaur exhibit at the Field Museum in Chicago, Illinois, with a $16.5 million gift to support its acquiring Sue the T. rex, a 122-foot-long Tyrannosaurus rex. "The Field Museum's never-ending goal is to offer the best possible dinosaur experiences. Ken Griffin's long-time support is a major step forward in achieving that goal," Field Museum president Richard Lariviere said at the time. "With this extraordinary gift from Ken, we'll be able to create a more scientifically accurate and engaging home for Sue the T. rex and welcome the world's largest dinosaur to the Field." Griffin intends to keep "Apex" stateside after the government of Abu Dhabi purchased "Stan," a male Tyrannosaurus rex, for nearly $32 million, and moved it to a new natural history museum there. After the sale Wednesday, Sotheby's, which had kept the buyer's identity under wraps, said Apex was "chased by seven bidders" during the live auction. "'Apex' lived up to its name today, inspiring bidders globally to become the most valuable fossil ever sold at auction," Cassandra Hatton, Sotheby's Global Head of Science & Popular Culture, said in a statement Wednesday. "I am thrilled that such an important specimen has now taken its place in history, some 150 million years since it roamed the planet. This remarkable result underscores our unwavering commitment to preserving these ancient treasures."
Netflix beats estimates as ad-supported memberships rise 34% 2024-07-18 16:56:00+00:00 - The Netflix logo is displayed above its corporate offices on January 24, 2024 in Los Angeles, California. Netflix reported second-quarter earnings Thursday that showcased the media giant's position at the head of the streaming race as it added more global subscribers and saw strong growth in its advertising business. The streamer said its ad-supported memberships grew 34% during the period compared to the same quarter last year. Advertising has become an increasingly important business model for media companies to boost — or in some cases, achieve — profitability for streaming. Netflix's stock has been boosted in recent quarters by its push to gain subscribers on its cheaper, ad-supported tier, in addition to its crackdown on password sharing. Here's how the company performed for the period ended June 30, compared with Wall Street expectations: Earnings per share: $4.88 vs $4.74 per share expected by LSEG $4.88 vs $4.74 per share expected by LSEG Revenue: $9.56 billion vs.9.53 billion expected by LSEG $9.56 billion vs.9.53 billion expected by LSEG Total memberships: 277.65 million global paid memberships vs. 274.4 million expected, according to StreetAccount Revenue was roughly $9.6 billion, up 17% compared to the year-earlier period, driven primarily by the increase in average paid memberships. Netflix said it now expects full-year reported revenue growth of 14% to 15%, compared with previous guidance of 13% to 15%. The company reported net income of $2.15 billion, or $4.88 per share, up from $1.49 billion, or $3.29 per share, during the second quarter of 2023. Netflix's global paid memberships rose 16.5% year over year to 278 million. This marks one of the last updates Netflix will release regarding its membership numbers. Last quarter, the company warned investors it would stop providing quarterly membership numbers or average revenue per user beginning in 2025, noting the company is "focused on revenue and operating margin as our primary financial metrics — and engagement (i.e. time spent) as our best proxy for customer satisfaction."
Royal Mail revenues boosted by election and rise in stamp prices 2024-07-18 16:52:00+00:00 - The chief executive of Royal Mail’s parent company has said it was “too easy to point a finger” at the delivery company over delays to postal votes, as it reported a rise in revenue helped by the general election. The postal company’s owner, International Distribution Services (IDS), which is the subject of a £3.6bn takeover bid from a Czech billionaire, said letter revenues rose 11.2% in the three months to the end of June. Its sales rose on the back of record numbers of postal votes and higher stamp prices. Deliveries of postal vote returns increased by 50% compared with the election in December 2019, and 30% more candidate mail was delivered than in the run-up to that poll. Royal Mail was criticised before the election as concerned voters fretted over delays to their ballot papers. Some did not arrive in time before holidaymakers headed abroad and the then postal affairs minister, Kevin Hollinrake, claimed there was a “resourcing issue” in Royal Mail. At the time, the company denied there was a backlog in postal votes and said it was delivering the ballot packs as soon as they arrived in its network from local councils. Martin Seidenberg, the group chief executive of IDS, said it was “probably worthwhile reviewing the processes and procedures” around elections. He cited the surprise short timeframe between the former prime minister Rishi Sunak calling the election and Britain going to the polls, and the time taken to print materials. Seidenberg said: “You can’t really point a finger at just one or two [things] … it’s been a combination. What we got, we delivered – it’s too easy to point a finger just at Royal Mail.” He added: “If there will be an independent investigation, we will support it.” The delays even raised the prospect of close results in constituencies being challenged in the high court because of delayed postal votes. On Thursday, Royal Mail said 7.3m completed postal votes had been posted. It delivered 50.8m polling cards, and 184m pieces of candidate mail. However, excluding election mail, letter volumes fell 4%. Seidenberg said: “I am proud and thankful for all the extra effort our postmen and women put in to play our part in delivering democracy.” The company’s revenues were also boosted by an increase in stamp prices. In April, the price of a first class stamp increased by 10p to £1.35, with second class rising from 75p to 85p. IDS group revenues rose 8.2% to £3.3bn in the first quarter of its financial year, with Royal Mail making a £2bn contribution, up 10.6%, and a further £1.3bn deriving from its international parcels arm, GLS, a 4.8% increase. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The financial update comes as the Czech tycoon Daniel Křetínský progresses his bid to take IDS private, 11 years after Royal Mail was turned into a listed company under the coalition government. Křetínský, IDS’s biggest investor, has faced questions over his long-term intentions for Royal Mail and the dealings of his longtime business partners. The low-profile energy tycoon, who also owns stakes in the football club West Ham United and the supermarket chain Sainsbury’s, this week told the BBC he would honour a commitment to deliver the universal service obligation (USO) “as long as I live”. On Thursday, the company set up to acquire IDS said it was “fully committed” to the statutory obligation, and supported a proposal by Royal Mail to pare back second class deliveries to every other weekday. It has also agreed with the government not to sell Royal Mail or GLS for at least three years. Asked whether he trusted Křetínský, Seidenberg said: “I have had some endeavours with him as part of him being an investor and [the bid] does sound genuine to me.” As politicians appeared in front of the inquiry into the Horizon IT scandal, Seidenberg said: “I feel very sorry for what happened there, because it’s personal tragedies behind it.” The Post Office was part of Royal Mail Group when the Horizon scandal began but was spun out in 2012. Seidenberg said many customers did not realise they were now separate entities. “We’re not happy with such a strong connection at this point in terms of recognition. This will only be something you can deal with over time.”
A reminder of why former Trump adviser Peter Navarro actually went to prison 2024-07-18 16:34:53+00:00 - Fresh out of prison, Peter Navarro told the crowd at the Republican National Convention on Wednesday that “if they can come for me, if they can come for Donald Trump, be careful: They will come for you.” Putting aside the fact that the Supreme Court’s recent immunity ruling broadly insulated Trump from criminal liability, Navarro is correct — to the extent that anyone who fails to comply with a congressional subpoena does risk prosecution. But Navarro's remarks to the party don’t signal a full appreciation for why he was incarcerated. The former Trump White House adviser cast his prosecution for contempt of Congress and his imprisonment as part of an unjust Democratic plot against him and the Constitution. The truth is simpler: Navarro was convicted after he failed to comply with a subpoena from the House Jan. 6 select committee. He told the crowd in Milwaukee that the committee demanded he violate executive privilege and betray Trump, but that he refused. Yet, a court found that Trump didn’t assert or authorize Navarro to assert privilege in the first place. Navarro’s narrative of Democratic “lawfare” by all three branches of government is further complicated by the fact that, in the end, it was the same Roberts Court that bestowed broad immunity on the president that also declined to keep Navarro out of prison while he appeals his conviction. To be sure, Navarro’s underlying appeal is still pending, and the court could still take up the issue someday, whether in his or in Steve Bannon’s appeal, which is also pending. (Bannon is currently locked up after the court similarly declined to keep him free while he appeals his contempt of Congress conviction.) But contrary to Navarro’s RNC claim that he “went to prison so you won’t have to” — whatever that even means — he went to prison because he failed to comply with a subpoena, was convicted at trial, and even the GOP-supermajority Supreme Court didn’t see fit to keep him free during his appeal.
This Cybersecurity Stock Gains Analysts' Favor for Strong Growth 2024-07-18 16:22:00+00:00 - As the global economy becomes more digitized by the day, business and customer data are kept in what’s now the most common term in the technology sector: The Cloud. Companies rely on cloud computing services and artificial intelligence to make the vast databases they can access work for them. While this is good for companies like Amazon.com Inc. NASDAQ: AMZN web services and the chip makers that enable computing power like NVIDIA Co. NASDAQ: NVDA, there’s a better play out there. Datadog Today DDOG Datadog $118.82 -2.34 (-1.93%) 52-Week Range $77.81 ▼ $138.61 P/E Ratio 371.31 Price Target $138.21 Add to Watchlist Investors are recognizing a critical trend in cybersecurity: the speed of technology doesn't matter if safety measures are lacking. This is becoming a reality for many cloud-dependent companies. To bring this trend home, investors can look at Alphabet Inc. NASDAQ: GOOGL and its latest acquisition of cybersecurity startup Wiz for a price tag of $23 billion. Get Fortinet alerts: Sign Up Why would one of the world’s largest technology companies be willing to pay this much for a startup that isn’t that established or deeply entrenched in its industry yet? Because cybersecurity is becoming the most essential thing today. By association, other cybersecurity stocks will be rallying or at least attracting Wall Street attention, with the latest being Datadog Inc. NASDAQ: DDOG. Up to three Wall Street analysts covered the stock in July as a Buy. Understanding Wall Street's Perspective on Datadog Stock Starting with price action, Datadog stock looks like the leader among its peer group in cybersecurity. The stock now trades at 88% of its 52-week high, compared to Zscaler Inc. NASDAQ: ZS, which trades at a lower level of 76% of its 52-week high. Another worthy mention to peg Datadog against is Fortinet Inc. NASDAQ: FTNT, where momentum has yet to favor that stock as it trades at only 73% of its 52-week high. Analysts on Wall Street rarely stick their necks out to back a stock that is not seeing favorable price action, so Datadog’s recent moves gave some on Wall Street a confidence boost. Datadog MarketRank™ Stock Analysis Overall MarketRank™ 4.63 out of 5 Analyst Rating Moderate Buy Upside/Downside 14.7% Upside Short Interest Healthy Dividend Strength N/A Sustainability -0.81 News Sentiment 0.90 Insider Trading Selling Shares Projected Earnings Growth 25.00% See Full Details With a consensus forecast for up to 25% earnings per share (EPS) growth, Datadog stock also beats its peers. Zscaler expects to see just under 10% EPS growth for the next 12 months, while Fortinet analysts landed on a forecast for 9.5% as well for this year. Leaning on another bullish factor, here’s what valuations look like today. Those at Loop Capital saw it fit to place a price target on Datadog of up to $160 a share as recently as July 2024, daring the stock to rally 30.3% from where it trades today. While not as bullish as Loop Capital, other analysts still see a double-digit upside for Datadog in the quarters ahead. Evercore analysts justify a price target of $150 for Datadog stock, implying a net upside of 22.1% from today’s prices. Mizuho is in the middle of Loop Capital’s high range and Evercore’s low range. Analysts at Mizuho see a $155 valuation for Datadog stock, calling for a rally to the tune of 26.2% higher. Datadog's Financial Momentum: Evaluating the Numbers for Investors Looking into the company's financials can be a good way for investors to justify the currently bullish views on Datadog stock held by Wall Street analysts. Most importantly, digging into the first quarter 2024 earnings results can uncover recent financial momentum. Starting with the top line (revenue), investors can see the press release led by 27% annual growth, bringing Datadog's net revenue to $611 million. However, not all revenue is equal, as subscription revenue is the better part of cybersecurity businesses since it is more predictable and stable than one-off sales. Regarding subscription revenue, the customer count grew to 3,340 annual recurring revenue members, paying over $100,000 a year for Datadog's services. Trickling down from this user and revenue growth are Datadog's net income figures, which went from a net loss per share of $0.08 to a net gain per share of $0.12 for the quarter. Datadog, Inc. (DDOG) Price Chart for Thursday, July, 18, 2024 On a more tangible basis, in accounting terms, investors should examine Datadog's free cash flow (operating cash flow minus capital expenditures). Operating cash flow grew from $133.7 million last year to $212.3 million this quarter, and adjusted for this quarter's $14.1 million in capital expenditures, Datadog has $198.2 million in free cash flow. Achieving and maintaining positive free cash flow is what every investor should look for in an investment. Why? Businesses can use this capital to reinvest into business growth, the foundation for investors to compound their wealth on an investment. Datadog's growth in recurring revenue carries a gross margin of 81.4%, so investors can reasonably expect the company to continue generating positive free cash flow and improving its value offer to attract more customers. Knowing this, Wall Street analysts made the potentially right call. Before you consider Fortinet, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Fortinet wasn't on the list. While Fortinet currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Parabolic Rise of This Stock Shows No Signs of Slowing 2024-07-18 15:47:00+00:00 - Cintas Today CTAS Cintas $758.97 +39.19 (+5.44%) 52-Week Range $474.74 ▼ $773.78 Dividend Yield 0.71% P/E Ratio 52.42 Price Target $710.55 Add to Watchlist Cintas Corporation’s NASDAQ: CTAS Q4 results and guidance prove its parabolic share price movement can continue. The results continue a trend that includes organic and acquisitional growth, widening margins, robust cash flow, and capital returns. The trend has the stock price up more than 800% in the last decade, and another 800% is possible. That’s why the company will split its shares this fall: the current high share prices and the potential for another triple-digit gain. Persistent business trends drive its share price, including healthy, resilient labor markets and an improving outlook for easing economic headwinds through lower interest rates. Investors looking to ride the Cintas wave can buy in now, wait to see if a dip forms after the split, and buy more later. Get Cintas alerts: Sign Up Cintas Has Mixed Quarter; Results Shine Where It Counts Cintas had a mixed quarter regarding the analysts' estimates, but there is no bad news. The $2.47 billion in net revenue aligns with the consensus, a tepid result, but it is up 8.3% compared to next year, compounded by a wider margin and improved guidance. The organic growth, ex acquisitions, is 7.5%, driven by strength in both segments. The core uniform services segment advanced by 7.8%, led by a larger 9.5% increase in Other. The margin is where the results shine brightest. The company reported a 150-basis-point improvement in the gross margin and a 120-basis-point gain in operating margin that drove accelerated growth on the bottom line. The improvements are due to reduced costs and expenses and were compounded by increased interest income. The net result is a 19.6% increase in income, a nearly 20% increase in GAAP EPS, and a cash-flow positive quarter. Cintas Dividend Payments Dividend Yield 0.71% Annual Dividend $5.40 Dividend Increase Track Record 41 Years Annualized 3-Year Dividend Growth 92.59% Dividend Payout Ratio 37.29% Recent Dividend Payment Jun. 14 See Full Details Cash flow came in at $2.08 billion, sufficient to cover CAPEX and improve the balance sheet. FCF topped $1.5 billion, leaving ample money for acquisitions, dividends, and share repurchases. Balance sheet highlights include a 3x increase in the cash reserve, increased receivables, increased current and total assets, debt reduction, reduced liability, and an 11% increase in shareholder equity. Because the cash position is robust and leverage ultra-low at 0.5x equity and 0.2x assets, the company is set up for another year of dividend growth and share repurchases. Share buybacks aren’t robust but offset dilution. The dividend is more substantial but near historic lows, yielding about 0.75%, with the stock trading at new highs. The salient detail is that Cintas increases the distribution annually, and recent increases have been double-digit, a trend that can be sustained. The Sell-Side Tailwind Is Strong for Cintas Cintas MarketRank™ Stock Analysis Overall MarketRank™ 3.91 out of 5 Analyst Rating Moderate Buy Upside/Downside 6.4% Downside Short Interest Bearish Dividend Strength Strong Sustainability -2.61 News Sentiment 0.51 Insider Trading Selling Shares Projected Earnings Growth 9.63% See Full Details Cintas has an enviable business and sell-side support that provides a tailwind for the market. Analysts rate the stock at Moderate Buy and are raising their price targets. The consensus lags the price action by a few hundred basis points but is up 7% in the month before the Q2 release, 35% in the last 12 months, and expected to continue higher now. The recent revisions lead to the range's high end, suggesting another $40 or 5% is now possible. Institutions, which own 64% of the stock, have bought on balance for six consecutive quarters. Their activity spiked in Q1 2024 and remained bullish into the first month of Q3. The Cintas' Technical Outlook: Bullish with a Chance of Correction Cintas’ stock price surged more than 5% at the open following the Q2 release. The move put the market at a new high, but fresh highs may not come quickly. The market shows some signs of resistance and profit-taking at this level and may cap gains, allowing the market to consolidate and potentially close the gap that formed at the open. Assuming no change in the outlook, a move to retest support at or near $720 would be an attractive entry point and may trigger a rally. Before you consider Cintas, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cintas wasn't on the list. While Cintas currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
No Taxes on Tips? A Trump Idea Gains Ground. 2024-07-18 15:27:18+00:00 - In Donald J. Trump’s telling, the idea was born over dinner at his Las Vegas hotel, where the waitress serving his table complained about the burden of paying taxes on her tips. “I was actually surprised to hear it,” Mr. Trump said last month at a rally in Virginia, adding that he quickly decided to address the waitress’s problem with a new campaign pledge: “No taxes on tips!” The proposal has rapidly become more than just a rally talking point. The Republican Party has officially embraced it in its platform, and House Speaker Mike Johnson, Republican of Louisiana, has said he would “pass it as soon as we can.” Some Democrats are also warming to making tipped income tax-free, with the two senators representing Nevada, a swing state with large restaurant and casino industries, endorsing it. The sudden popularity of exempting tips from taxes is a reminder of the improvisational nature of economic policymaking under Mr. Trump. Several economists involved in advising the Trump campaign said they hadn’t heard of the idea until Mr. Trump announced it publicly. But Republicans now see it as a key way to appeal to working-class Americans during the campaign against President Biden.
Pret a Manger customers left fuming over end of ‘free drinks’ 2024-07-18 14:40:00+00:00 - Pret a Manger is axing its subscription offering members “free drinks”, almost four years after the deal launched in the UK to attract customers back after the Covid pandemic. In a move that has upset some customers, the coffee chain said it was “time to rethink” the Club Pret offer, and that instead of providing five drinks a day and a 20% discount on food for a cost of £30 a month, it would charge £10 for a subscription for half-price drinks. Its offering of five free hot or iced barista-made drinks has been running for four years. Last year it increased the price and added a discount for food, which led to two sets of price tags on its shelves. Pret said it would eliminate this dual pricing across food products, something the company’s UK managing director, Clare Clough, said the chain “never really got comfortable with”. The new subscription will be introduced in September. For existing and new subscribers, the fee will start at £5 a month until 31 March 2025 and then rise to £10. “We know this is a change. But with Club Pret subscription, our coffees, teas, coolers, and iced drinks will continue to be the best offer on the high street, and at a much more accessible price than the £360 a year people have to pay for the current scheme,” Clough said. She added that “given the majority of our customers are not Club Pret subscribers, our priority now is to focus on better value for everyone”. There was a hostile reaction to the change from some quarters, with people airing their frustration on social media. One X user directed their response to Pret, saying: “You are making a huge mistake. There is time to rectify it. Otherwise, I am cancelling my subscription.” Another said: “I’m genuinely shocked that you think that it’s acceptable to try to auto-enrol people off of the current subscription plan to your … 50% off in September. This should be an opt-in system due to the level of change to the scheme.” Last year, Pret a Manger returned to profit for the first time since 2018, with the launch of its subscription service helping the coffee and bakery chain bounce back after the Covid crisis. The group, which suffered during the pandemic lockdowns when office workers stayed at home, said sales jumped 20% to £430m in the six months to the end of June 2023. Pret’s subscription service generated 57.9m redemptions globally in 2022, up two-thirds from a year before.
Risk Tolerance vs. Risk Appetite: Key Differences 2024-07-18 14:15:00+00:00 - Risk tolerance and risk appetite may sound like different ways to describe the same thing, but they’re actually very distinct measurements. Risk tolerance ensures that you do not take on more risk than you can emotionally handle, preventing stress and impulsive decisions, while risk appetite helps you construct a balanced portfolio that aligns with desired returns and acceptable levels of risk. Because the two concepts approach risk from different directions, your chances of a successful investment increase when they’re used together. Keep reading to learn more about what risk tolerance and risk appetite are, how they are different, and why they are crucial factors to consider when making investment decisions. Get earnings alerts: Sign Up What Is Risk Tolerance? Risk tolerance refers to an investor's psychological and emotional ability to withstand losses in their investment portfolio without experiencing undue stress or making impulsive decisions. It reflects their capacity to handle market volatility and downturns. Think about how you handle losing money. Are you quick to sell a losing position? Or can you stomach market drawdowns without sweating? If you can tolerate significant drawdowns without losing your nerve, you may have a high risk tolerance and can participate in more advanced trading strategies. If high-flying stocks with lots of volatility cause you more stress than the potential profits are worth, you may have a low risk tolerance. What Is Risk Appetite? Risk appetite is the level of risk an investor is willing to take in pursuit of their financial goals. It reflects the degree of uncertainty and potential loss they are comfortable with in order to achieve desired returns. Are you willing to invest in high-risk, high-reward opportunities to potentially achieve significant returns? Or do you prefer more stable, low-risk investments even if it means lower potential gains? If you are open to taking substantial risks for the possibility of higher returns, you may have a high risk appetite. Conversely, if you prioritize preserving capital and seek steady, predictable growth, you likely have a low risk appetite. Ad Allegiance Gold No matter the outcome of the election, it could be a death sentence for your wealth... In today's financial landscape, many investors are feeling disillusioned and disappointed with traditional investment options. So, Why Gold? Why Now? Key Differences Between Risk Tolerance and Risk Appetite Risk tolerance and risk appetite, though related, serve distinct roles in investment decision-making. Let's take a look at some of their differences. Data Source Risk tolerance is personal and subjective, varying greatly from one person to another based on individual emotions and experiences. Risk appetite is more objective and strategic, helping you make investment decisions based on facts. Influencing Factors Focus While risk tolerance focuses on how much loss someone can emotionally handle without making impulsive decisions, risk appetite focuses on the level of risk an individual or institution is prepared to take to achieve desired returns. A person's financial situation, age, investment experience, comfort with uncertainty, and emotional resilience all factor into their risk tolerance . Risk appetite, on the other hand, is shaped by financial objectives, income level, investment knowledge, market conditions, and overall financial strategy.While risk tolerance focuses on how much loss someone can emotionally handle without making impulsive decisions, risk appetite focuses on the level of risk an individual or institution is prepared to take to achieve desired returns. Application Your risk tolerance guides your behavior during market downturns, helping with your personal financial planning to avoid panic selling. Your risk appetite determines your overall investment strategy, aligning your long-term financial goals and risk management. Examples Of Risk Tolerance and Risk Appetite Consider two individuals saving for retirement. The first is a 25-year-old recent college graduate with minimal capital but a lucrative new job and decades of earnings ahead of them, and a 60-year-old who has built a substantial nest egg in their retirement accounts and plans to retire in five years. Risk Tolerance Being young with minimal financial responsibilities, the 25-year-old can handle market volatility and potential losses without significant stress. They understand that market fluctuations are part of the investment process and that they have the time to recover from downturns. Their ability to stay calm and maintain their investment strategy during market dips reflects their high risk tolerance. As they approach retirement, the 60-year-old is less emotionally equipped to handle significant market volatility and potential losses, which could directly impact their retirement plans and financial security. The stress of potential losses and market downturns at this stage of life is something they prefer to avoid, leading to a preference for more stable investments. As such, this soon-to-be retiree has a low risk tolerance. Risk Appetite With a well-paying new job, the 25-year-old is willing to take on significant risk to achieve substantial long-term financial growth. Their willingness to invest in riskier assets shows their strategic approach to potentially maximize returns over a long investment horizon. Because their risk appetite is high, they may invest in high-growth stocks, startups, or other volatile assets, aiming for high returns despite the risks. But with retirement only five years away, the 60-year-old has a low risk appetite. At this stage in life, their primary goal is to preserve capital and ensure steady, reliable returns. In order to achieve that, they will avoid high-risk investments and focus on protecting their accumulated wealth by investing in bonds, fixed-income securities, and low-volatility dividend-paying stocks. Risk Tolerance and Risk Appetite Examine Different Parts of the Same Concept Risk tolerance and risk appetite are both essential for making well-rounded investment decisions. Risk tolerance deals with the psychological side of investing, ensuring you don’t take on more risk than you can handle without stress. On the other hand, risk appetite is a strategic measure that defines the level of risk you are willing to take on to reach your financial goals. By understanding and balancing both metrics, you can create a more effective investment strategy that aligns with your emotional capacity to endure market fluctuations and your financial objectives for growth and stability. Using both risk tolerance and risk appetite together increases your chances of achieving investment success while maintaining peace of mind. Start Your Research With MarketBeat Want to learn more about risk tolerance and risk appetite? MarketBeat has tools to track markets and economic events, as well as an abundance of educational materials about investing concepts, asset classes, and market terminology.
Meta pulls plug on release of advanced AI model in EU 2024-07-18 13:52:00+00:00 - Mark Zuckerberg’s Meta will not release an advanced version of its artificial intelligence model in the EU, blaming the decision on the “unpredictable” behaviour of regulators. The owner of Facebook, Instagram and WhatsApp is preparing to issue its Llama model in multimodal form, meaning it is able to work across text, video, images and audio instead of just one format. Llama is an open source model, allowing it to be freely downloaded and adapted by users. However, a Meta spokesperson confirmed the model would not be available in the EU. The decision underlines tensions between big tech and Brussels amid a tougher regulatory environment. “We will release a multimodal Llama model over the coming months – but not in the EU due to the unpredictable nature of the European regulatory environment,” the spokesperson said. Brussels is introducing the EU AI Act, which comes into force next month, while new regulatory requirements are being put in place for big tech firms in the form of the Digital Markets Act (DMA). However, Meta’s decision on the multimodal Llama model relates to whether it complies with GDPR (general data protection regulations). Meta has been ordered to stop training its AI models with posts from Facebook and Instagram users in the EU because of concerns it may violate privacy rules. Ireland’s Data Protection Commission, which oversees Meta’s compliance with GDPR, said it was continuing discussions with the company over its model training. However, Meta is concerned that other EU data watchdogs can intervene in the regulatory process and bring approval to a halt. Text-based versions of Llama are available in the EU and a new text-only version will be released in the EU soon – but those models were not trained on EU Meta user data. The move follows Apple’s announcement last month that it will not roll out some of its new AI features in the EU owing to concerns about complying with the DMA. skip past newsletter promotion Sign up to This is Europe Free weekly newsletter The most pressing stories and debates for Europeans – from identity to economics to the environment Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Meta had been planning to use its multimodal Llama model in products such its Ray-Ban smart glasses and on smartphones. The Llama decision was first reported by Axios. Meta also announced on Wednesday that it had suspended use of generative AI tools in Brazil after the government raised privacy concerns over the use of user data to train models. The company said it had decided to pause use of the tools while it held talks with Brazil’s data authority.
France’s divided National Assembly votes to keep centrist speaker as political turmoil persists 2024-07-18 13:47:07+00:00 - PARIS (AP) — France’s divided National Assembly on Thursday kept a centrist member of President Emmanuel Macron’s party as speaker after a chaotic early election produced a hung legislature. Speaker Yaël Braun-Pivet, 53, has been at the head of the National Assembly since 2022 and she retained her post Thursday after three rounds of votes in the lower house of parliament. She received the support of Macron’s centrist allies and of some conservative lawmakers seeking to prevent her leftist contender from getting the job. Braun-Pivet won 220 votes, while communist lawmaker André Chassaigne got 207. The parliamentary election earlier this month resulted in a split between three major political blocs: the New Popular Front leftist coalition, Macron’s centrist allies and the far-right National Rally party. None of them won an outright majority. “We need to get along with each other, to cooperate. We need to be able to seek compromises,” Braun-Pivet told lawmakers in a speech following her election as speaker. “You will always find me by your side to do this, to dialogue with you, to innovate with you, to find that new path that the National Assembly must take.” Thursday’s opening session of the lower house of parliament came two days after Macron accepted the resignation of Prime Minister Gabriel Attal and other ministers, but asked them to handle affairs in a caretaker capacity until a new government is appointed, as France prepares to host the Paris Olympics at the end of the month. Leaders of the New Popular Front on Thursday evening again urged Macron to turn to them to form the new government, insisting they won the most seats in the National Assembly. Yet the members of the coalition, which includes the hard-left France Unbowed, the Socialists, the Greens and the Communists, are still feuding among themselves over whom to choose as their prime ministerial candidate. Chassaigne, who was the joint candidate of the New Popular Front, criticized the job of speaker going to Macron’s centrists as a vote “stolen by an unnatural alliance.” It “gives us even more strength,” he added. Chassaigne blamed conservative members of The Republicans party for participating in “tactics that led to not changing anything,” describing the move as “giving nausea.” Speaking from Woodstock, England, where he was attending a summit of leaders from Europe, Macron declined to comment on the French political situation and refused to say when he intends to name a new prime minister. “I will not answer that question,” he said. Politicians from the three main blocs and smaller parties had waged a battle for the job of speaker, with each camp seeking to make a show of force in the hope that it would influence Macron’s decision. Unions and left-wing activists staged protests Thursday across the country to “put pressure” on Macron to choose a prime minister who comes from the New Popular Front. There is no firm timeline for when the president must name a new prime minister.
Starmer promises to repair ties with European countries 2024-07-18 13:41:00+00:00 - Keir Starmer has promised European leaders he will reset Britain’s ties with their countries as the prime minister uses his first international summit on domestic soil to draw a line under years of fractious relations with continental Europe. The prime minister used his opening speech at the European Political Community summit at Blenheim Palace on Thursday to reassure the leaders of more than 40 other countries that he wanted to renew “trust and friendship” with them. British ministers are hoping to use the summit as a chance to explore future talks on migration and trade, with Starmer hoping to eventually secure new deals with the EU on returning asylum seekers and trading defence and agricultural products. Starmer told the summit: “We want to work with all of you to reset relationships, rediscover our common interest and renew the bonds of trust and friendship that brighten the fabric of European life.” He added: “We will strengthen our existing relationships and we will build new ones. “This includes resetting our relationship with the EU because I believe that the UK and the EU, working together as sovereign partners, are a powerful force for good across our continent.” He contrasted his approach with that of his predecessor, Rishi Sunak, who upset some European allies with his plans to deport asylum seekers to Rwanda and by threatening to leave the European convention on human rights if the scheme was blocked in Strasbourg. Starmer said: “We are resetting our approach. This government will not commit taxpayer money to gimmicks. We will approach this issue with humanity and with a profound respect for international law, and that’s why we scrapped the unworkable Rwanda scheme on day one.” And in the most full-throated defence of the ECHR from a British prime minister in years, Starmer – who once wrote a textbook on European human rights law – said: “I myself first read about these principles of the convention and international law in a law library in Leeds, well, 40 years ago now. That inspired me in everything I have done since then and I still draw strength from it, and value from it, every day.” European leaders arriving at the summit said they were largely optimistic about the chances of renegotiating parts of Britain’s relations with the EU. Josep Borrell, the EU’s chief diplomat, said: “We welcome the new tone of the British government and we look forward to engaging with it. We are ready to reinforce our foreign and security policy cooperation.” Charles Michel, the president of the European Council, said: “On the field of migration, we can see how we can deepen the ties, how we can cooperate more together.” Simon Harris, the Irish taoiseach, said the Labour government was a “gamechanger” for the EU. “You have a British government that wants to actively talk about a closer relationship with Europe, the importance of multi-relevant-lateralism, staying within the ECHR, working closely with Ireland, talking about language around co-guarantor of our peace process. It’s a very different landscape.” While British and European leaders have spoken warmly about the possibility of a renegotiation, formal talks remain some way off. David Lammy, the foreign secretary, said on Thursday morning the UK was “nowhere near” negotiating agreements with the EU. Lammy told BBC Breakfast: “Of course, we’re entering into discussions but we’re nowhere near a negotiation on the trade agreement – that paper-thin trade agreement that Boris Johnson struck – the veterinary deal that we’ve said that we want to get, the mutual qualifications that we want to work on, and the UK-EU security pact that we’re proposing to Europe that will enable us to discuss a whole range of issues across the European family.”
Why This Leading Health Stock is a Buy No Matter the Market Move 2024-07-18 13:26:00+00:00 - Abbott Laboratories NYSE: ABT is a premier buy-and-hold stock because of its foresightful management, quality operation, portfolio, pipeline, cash flow, and capital return. It’s not always a good buy; all healthcare stocks have ups and downs in their cycles, but Abbott is a buy today, no matter how it moves. Abbott Laboratories Today ABT Abbott Laboratories $100.07 -4.61 (-4.40%) 52-Week Range $89.67 ▼ $121.64 Dividend Yield 2.20% P/E Ratio 31.17 Price Target $120.18 Add to Watchlist Abbott’s stock price trades in a range, at the middle of the range, and ready to move. A move lower will retest the bottom of the range, which is an attractive entry point, and a move higher will signal upward movement and potential for a sustained rally. Get Abbott Laboratories alerts: Sign Up The Q2 results and guidance suggest the move will be higher, and based on other metrics, a retest of the range top is the minimum target. Because guidance was increased, investors should expect market sentiment to remain firm, and there is a reasonably high conviction for the price action to break out of its range soon. In this light, a stock price dip is a blessing, and a move to higher prices is an opportunity. Abbott Laboratories Has Strong Quarter, Raises Guidance Abbott Laboratories had a strong quarter in all comparisons. The company reported $10.4 billion in net sales to outpace the consensus estimate, and all adjusted figures are equally good. Abbott reported organic revenue growth of 7.2%, which excludes divestiture, acquisitions, and other one-offs, and a 9.3% increase excluding COVID-19 sales. COVID-19 sales are the primary weakness; the core business, acquisitions, and pipeline are robust. Regionally, sales in the U.S. were strongest and up 4.7%, as reported; international sales grew by 4.0%. Segmentally, three of the four operating segments produced growth. The week link was Diagnostics, which includes the bulk of COVID-19-related revenue. Adjusting for COVID-19, all four segments produced growth. Medical Devices were the strongest, with a gain of 10.2% reported and 12.1% organic. Abbott Laboratories MarketRank™ Stock Analysis Overall MarketRank™ 4.99 out of 5 Analyst Rating Moderate Buy Upside/Downside 20.0% Upside Short Interest Healthy Dividend Strength Strong Sustainability -1.10 News Sentiment 1.05 Insider Trading Selling Shares Projected Earnings Growth 10.61% See Full Details Margin is another area of strength. The net result of operations is GAAP earnings of $0.74 and adjusted diluted EPS of $1.14, which grew 5.5%, outpacing the top-line growth by 150 basis points and the consensus estimate by 360. The takeaway is that the results are solid and lead to increased guidance. The company narrowed the range for revenue, raising the midpoint while improving the outlook for adjusted earnings. Adjusted earnings were raised to the range of $4.161 to $4.63, which puts the mid-point above consensus. Regarding Abbott’s portfolio wins and pipeline, the company reported several new approvals, including the ESPRIT below-the-knee system, two new OTC glucose monitoring systems, and the AVEIR pacemaker system, all of which are expected to drive results moving forward. Abbott also reports ten new pipeline opportunities. Abbott Sell-Side Support is Strong, Tailwinds are Present MarketBeat tracks 10 analysts covering Abbott Laboratories who have a reasonably high opinion of the stock. The group rates it as a Moderate Buy and sees it advancing at least 200 basis points at the low end of the target range. The consensus stock price estimate, which has held near $120 for over 12 months, implies a 15% upside that aligns with the trading range's top. Early premarket action is light but favorable. The market has been increasing since the prior day's close and showing support at the 30-day EMA. Support is echoed in the stochastic indicator, which shows a bullish buy signal. MACD remains bearish and is a concern, but it is rolling into a buy signal that may be confirmed soon. A move above the 150-day EMA near $107, the low end of the analysts’ range, will be significant. The stock will likely continue moving higher in that scenario and could reach the range’s top by the end of the year. Before you consider Abbott Laboratories, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Abbott Laboratories wasn't on the list. While Abbott Laboratories currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Microsoft Stock: If You're Still On The Fence, Read This 2024-07-18 12:53:00+00:00 - Microsoft Today MSFT Microsoft $440.37 -3.15 (-0.71%) 52-Week Range $309.45 ▼ $468.35 Dividend Yield 0.68% P/E Ratio 38.13 Price Target $477.72 Add to Watchlist Though they've cooled somewhat over the past fortnight, shares of tech titan Microsoft Corp NASDAQ: MSFT are still up 20% this year. For now, the 5% drop since the first week of July does not look like anything to worry about; it is more of a case of Microsoft getting pulled down by NVIDIA's NASDAQ: NVDA dip. For those of us on the sidelines, this is good news. Microsoft has been one of the standout tech stocks of the past year, and this could well be a rare entry opportunity opening up. In fact, there are several reasons to support this, and investors should be excited. Let's jump in and take a look. Get Microsoft alerts: Sign Up Consistent Bullish Analyst Upgrades for Microsoft Microsoft MarketRank™ Stock Analysis Overall MarketRank™ 4.74 out of 5 Analyst Rating Moderate Buy Upside/Downside 9.0% Upside Short Interest Healthy Dividend Strength Strong Sustainability -0.75 News Sentiment 0.57 Insider Trading Selling Shares Projected Earnings Growth 11.89% See Full Details The first thing to consider is the consistent run of bullish analyst upgrades and updates that Microsoft has been on the receiving end of. As we've previously examined, this isn't exactly a new trend either. This week alone, the Mizuho and Bank of America teams reiterated their Buy ratings on the stock while upping their price targets to $480 and $510, respectively. Microsoft shares closed at $443 on Wednesday evening, pointing to a solid potential upside of some 15%. And theirs aren't even the highest targets, either. Truist Financial did that with their $600 price target last month, which, with the recent dip, is now indicating an upside of some 35%. Not bad for a $3 trillion business. Much of the bullish sentiment coming from these analysts centers around the expected strong performance of Microsoft's cloud business. BMO Capital Markets, for example, had a call with industry experts earlier this month and published an interesting note afterward. The feeling is that Microsoft's Azure product should see something like 31% year-over-year growth. High Expectations for Microsoft's Upcoming Earnings Report This optimism is fueling high expectations for the company's upcoming earnings report, due at the end of the month. As a catalyst, they don't come much better than this, and considering how high expectations are for Microsoft to blow it out of the water, this dip looks increasingly appealing as an entry opportunity. Wedbush's Dan Ives made this point earlier this week when he named Microsoft one of his favorite names heading into the Q2 earnings season. Morgan Stanley said the same, with analyst Keith Weiss writing in a note to clients that he expects a "clean beat." Two weeks out from the report, his refreshed price target of $520 speaks volumes about his bullishness on Microsoft shares rallying into, and very likely through, the earnings report. The team at Citi echoed all this, writing in a note to investors just yesterday that they remain "constructive on Microsoft heading into Q4 results, expecting a healthy top/bottom-line beat and strong Azure/CapEx spending to underscore Microsoft's AI leadership position in the sector". Maintaining Momentum: Positive Outlook for Microsoft Considering that Microsoft's relative strength index (RSI) was well over 70 at the start of the month, indicating extremely overbought conditions, the fact that it's since been brought down to just 45 only adds to the bull thesis. Those of us who take advantage of the dip can do so with the feeling we're getting a bit of a bargain. It was also interesting to see how, despite setting a new low at the start of yesterday's session, the stock rallied throughout the rest of the day and closed near its high. This suggests that a solid layer of buyers stepped in, and the bears were unable to take the stock any lower. If Microsoft can maintain that kind of momentum heading into the weekend and next week, things could get interesting pretty quickly. Microsoft Co. (MSFT) Price Chart for Thursday, July, 18, 2024 Before you consider Microsoft, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Microsoft wasn't on the list. While Microsoft currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Airline Giant Beats EPS Expectations, Signals Capacity Cuts 2024-07-18 12:30:00+00:00 - United Airlines Today UAL United Airlines $46.39 -0.55 (-1.17%) 52-Week Range $33.68 ▼ $58.23 P/E Ratio 5.73 Price Target $72.20 Add to Watchlist United Airlines NASDAQ: UAL is one of the “Big Three” passenger airline companies in the United States, along with Delta Air Lines NYSE: DAL and American Airlines Group NASDAQ: AAL. The firm reported Q2 2024 financial results on Jul. 17, 2024. The company has significantly outperformed the broader airline industry, represented by the U.S. Global Jets ETF NYSEARCA: JETS in 2024. United is up 13.7% so far, while JETS is up 3.1%. Let's examine United Airlines' operations and strategic vision to better understand the business. We will then review the company's earnings release and other relevant news. We will conclude with some outlook on the stock and what Wall Street analysts are expecting going forward. Get U.S. Global Jets ETF alerts: Sign Up United’s Operations, Strategic Fleet Revamp, and Star Alliance Benefits United is a global passenger airline company operating across six continents with the help of its regional carriers. Regional carriers accounted for 6% of the firm’s total flight capacity in 2023. The company has "hubs" in cities across the United States, such as Chicago, Denver, Houston, and Los Angeles. The firm also has a small air cargo business, comprising 3% of operating revenue in 2023. Revenue is also broken down by geography. Domestic travel, which includes the U.S. and Canada, accounted for 60% of revenue in 2023. United is the biggest member of the largest airline alliance in the world, the Star Alliance. The alliance has 26 member airlines and serves more than 1,200 airports in 186 countries. Airline alliances increase the ease of travel for customers and provide benefits such as increased access to airport lounges and the ability to redeem frequent flyer points across member airlines' flights. In its most recent annual filing, United highlighted its United Next strategic plan. The company has agreed to buy 50 Boeing 787-9 planes and 60 Airbus A321neo planes. These next-generation aircraft, scheduled for delivery between 2028 and 2031, will revamp the company's fleet. The primary goal of these purchases is to increase the company’s “gauge” in North America, a term for the number of seats available on each flight, and decrease its carbon emissions. The company is also updating features on its older planes to give customers a more premium experience. This includes installing entertainment systems on the back of every seat and providing access to the fastest in-flight Wi-Fi in the industry. United Beats on EPS But Sees Margins Decline United beat analysts’ expectations on adjusted earnings per share (EPS) by 21 cents, coming in at $4.14. Revenue fell short of estimates by $70 million, coming in at $14.99 billion. This represented a 5.2% increase in revenue from last year. The company's adjusted pre-tax margin declined by 320 basis points from a year ago, falling to 12.1% from a record 15.3%. The company expects a 3% decline in the industry capacity growth rate and will reduce its own capacity at the same rate. Firms are responding to softening demand, which has caused lower revenue per passenger. Passenger Revenue per Available Seat Mile (PRASM) fell 2.9% from the previous year. Firms hope to boost this number by lowering supply. Airlines have already begun to cut capacity, canceling routes that have not been profitable. Through the revenue diversity it has achieved, it believes it can capitalize on these changes by the second half of Q3 2024. It grew revenue from premium seating by 8.5% from the previous year and basic economy revenue by 38%. Guidance, Market Reaction, and Analyst Forecasts United Airlines MarketRank™ Stock Analysis Overall MarketRank™ 4.98 out of 5 Analyst Rating Moderate Buy Upside/Downside 52.3% Upside Short Interest Healthy Dividend Strength N/A Sustainability -5.87 News Sentiment 0.85 Insider Trading Selling Shares Projected Earnings Growth 13.01% See Full Details The firm reaffirmed its full-year adjusted EPS guidance at a midpoint of $10, higher than analysts' expectation of $9.78. However, it did issue much lower guidance for the third quarter, at a midpoint adjusted EPS of $3. Analysts were forecasting $3.38. On the news, shares fell as much as 6% in after-hours trading, before recovering to a small loss. With a forward price-to-earnings ratio of 4.6x, United Airlines appears to be inexpensive. This figure ranks at the 2nd percentile among United States industrial companies and sits below both Delta and American. Some justification for this is the firm’s sky-high long-term debt-to-equity ratio of 328%. Of analysts who have updated their price targets in the past month, the average move is an increase of $4, although there were widely differing views. One analyst moved their target up $15, while another analyst moved their target down $9. The average forecast of those analysts is a price target of $76.25, implying an upside of 62%. Before you consider U.S. Global Jets ETF, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and U.S. Global Jets ETF wasn't on the list. While U.S. Global Jets ETF currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Watch These 4 Overbought Stocks As Market Rotation Continues 2024-07-18 11:11:00+00:00 - While the overall market has enjoyed an impressive 17% year-to-date gain, recent rotations and sector-specific outflows have created a ripe environment for potential pullbacks. The semiconductor sector, for example, has seen a notable decline, with the SMH ETF down nearly 10% from its 52-week highs. Significant market rotations can often lead to overbought stocks pulling back as capital shifts from overvalued sectors to undervalued opportunities. For example, the IWM ETF, which represents small caps, has surged almost 12% this month, while the technology-focused XLK ETF is in the red. Get FOX alerts: Sign Up With this dynamic in mind, let's explore four stocks from various sectors that are currently overbought based on their RSI (Relative Strength Index) and might be due for a pullback. The RSI is a momentum oscillator that measures the speed and change of price movements, with readings above 80 typically indicating severe overbought conditions. Let's look at four stocks in overbought territory and determine if it's time to sell. Ford's Technical Analysis: Ripe for a Pullback Ford Motor Today F Ford Motor $14.55 +0.07 (+0.48%) 52-Week Range $9.63 ▼ $14.85 Dividend Yield 4.12% P/E Ratio 15.00 Price Target $14.18 Add to Watchlist Ford NYSE: F has climbed an impressive 23% this month, delighting shareholders. However, the stock's RSI now sits at 82.15, indicating it is in overbought territory. Additionally, Ford is approaching significant resistance on its higher timeframe near $15, a potential indicator of an imminent pullback. Investors might welcome a pullback as the stock's P/E remains in attractive value territory despite its recent surge. Impressively, Ford's forward P/E is only 7.46. However, on a fundamental basis, things are uncertain in the short term. The company is set to report its earnings next week. The consensus EPS forecast for the upcoming quarter is $0.62, compared to the reported EPS of $0.72 for the same quarter last year. From a technical analysis perspective, the stock seems ripe for a pullback, which could offer an attractive risk-reward entry given its valuation. However, with earnings around the corner, it might continue to run in anticipation of positive results. Ford Motor (F) Price Chart for Thursday, July, 18, 2024 Earnings Report Fuels Emergent BioSolutions' Rise Emergent BioSolutions Today EBS Emergent BioSolutions $11.43 -0.59 (-4.91%) 52-Week Range $1.42 ▼ $12.74 Price Target $8.00 Add to Watchlist Emergent BioSolutions Inc. NYSE: EBS, a life sciences company providing public health threat solutions, has experienced a meteoric rise this year. The stock is up over 400% year-to-date and 761% from its 52-week low, particularly soaring since its earnings report in May. The company reported $0.59 EPS for the quarter, significantly beating the consensus estimate of ($3.65). However, after nine consecutive days of gains, the stock's RSI has reached 89, indicating extreme overbought conditions. Analysts predict a significant downside, with a consensus price target of $8 forecasting nearly 34% downside, despite a Hold rating. With the stock stretched significantly from its major moving averages and an RSI nearing 90, now might be the opportune time for investors to take profits. Emergent BioSolutions Inc. (EBS) Price Chart for Thursday, July, 18, 2024 Potential Pullback for Better Entry Point in Fox FOX Today FOX FOX $34.61 -0.24 (-0.69%) 52-Week Range $25.82 ▼ $35.36 Dividend Yield 1.50% P/E Ratio 10.85 Add to Watchlist Fox Corporation NASDAQ: FOX, a major player in news, sports, and entertainment, has also shown impressive performance, with its stock up 25.6% year-to-date and over 12% this month alone. However, the stock's RSI of 81.12 suggests it is overbought. Technically, the stock's range expansion in the past two days indicates a potential near-term top as it deviates from its mean and major moving averages. Despite its attractive P/E of 10.88 and forward P/E of 9.18, which may appeal to value investors, a pullback could provide a better entry point for long-term gains, considering its 1.5% dividend yield and projected double-digit earnings growth. Fox Co. (FOX) Price Chart for Thursday, July, 18, 2024 Assessing Iron Mountain's Momentum and Market Position Iron Mountain Today IRM Iron Mountain $97.84 -1.38 (-1.39%) 52-Week Range $56.51 ▼ $100.78 Dividend Yield 2.66% P/E Ratio 148.24 Price Target $82.83 Add to Watchlist Iron Mountain Incorporated NYSE: IRM, a global leader in information management services, boasts a dividend yield of 2.6%. However, its P/E ratio of 151 and an RSI of 83.5 suggest it is highly overbought and vulnerable to a pullback. While analysts remain bullish with a Moderate Buy rating based on six analysts, the consensus price target of $82.83 forecasts a nearly 17% downside due to the stock's recent rapid ascent. Year-to-date, Iron Mountain has surged 41.7%, and over the past year, it has climbed more than 61%. A pivotal catalyst to watch that might influence the IRM's momentum is its upcoming earnings release, set for August 1. Iron Mountain Incorporated (IRM) Price Chart for Thursday, July, 18, 2024 Before you consider FOX, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and FOX wasn't on the list. While FOX currently has a "Strong Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
South African president says new coalition government is united in tackling unemployment and poverty 2024-07-18 10:44:20+00:00 - CAPE TOWN, South Africa (AP) — South African President Cyril Ramaphosa opened a new parliamentary term Thursday, nearly two months after an historic election result reshaped the country’s politics and led to the formation of an unprecedented multiparty government coalition. Ramaphosa’s speech to lawmakers at the City Hall in Cape Town — a replacement venue after a fire gutted the Parliament building two years ago — marked the official start of business for the new coalition, which brings at least 10 parties together to govern Africa’s most industrialized country. Ramaphosa said that despite the political differences of his diverse government, it was united in tackling South Africa’s three biggest problems: an unemployment crisis, crippling poverty and inequality, and the failure of state institutions that have been eroded by corruption and neglect that’s largely been blamed on Ramaphosa’s own African National Congress party. The May 29 election was a landmark for South Africa as voters frustrated with those three issues and others delivered the worst result ever for the ANC, which lost the majority it had held for 30 years since the end of the apartheid system of racial segregation and white minority rule. “Despite the achievements of 30 years of democracy ... millions of South Africans remain poor, unemployed and they live in a highly unequal society,” Ramaphosa said, conceding, as he’s done previously, to some failures by the ANC. “The circumstances of South Africa today require that we act together,” Ramaphosa added. Ramaphosa’s address began what South Africa calls “the seventh administration” — just the seventh government to be formed since the country was freed from the racist system of apartheid in 1994 and people of all races were allowed to vote. The speech was largely a call for unity across the political divide and was generally met by applause by lawmakers, an unsurprising result given so many of the parties represented in Parliament are now part of the governing coalition, including the main Democratic Alliance that was once the ANC’s fiercest political foe. It means South Africa also has a new official opposition, the newly-founded MK Party led by Jacob Zuma, a former South African president and ANC leader who has turned against it and emerged as the fiercest critic of Ramaphosa. MK lawmakers generally were subdued in their first sitting in Parliament opposite Ramaphosa and the new government, as were members of the far-left Economic Freedom Fighters, who have struck an opposition alliance with MK. Zuma wasn’t present after he was disqualified from standing as a member of Parliament because of a criminal conviction and prison sentence in 2021 for contempt of court. Ramaphosa, once a political protege of Nelson Mandela, is beginning his second and final five-year term, although the humbling election result for his once-dominant ANC meant that he had to rely on cross-party support to be reelected president by lawmakers last month. His challenge will be to keep a broad coalition with marked political differences together in the face of steep problems in a country meant to embody the hopes of the African continent. South Africa’s sky-high unemployment rate is 32% — the worst in the world. It’s considered the most unequal country in the world by wealth distribution, while its economy has stagnated for more than a decade. To tackle that, Ramaphosa said that his coalition government, dubbed a “government of national unity,” would prioritize growth and job development by creating new opportunities in almost every sector, including mining, agriculture, small business and green energy, while eliminating corruption and bureaucratic red tape. He offered little policy detail in a speech of broad strokes designed to pull the country together after a fiercely contested and divisive election put it in uncharted waters. “Parties cooperating is quite an historic moment for our country,” Ramaphosa said. "“We share a commitment to reconcile our nation.” ___ AP Africa news: https://apnews.com/hub/africa