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3 Big Dividend Stocks Yielding Over 7%; Wells Fargo Says ‘Buy’

Forest Products IIII - Fri, 05/06/2020 - 19:37

We’re in perplexing times. At this writing, the S&P 500 index stands at 3,201, just 5.5% below its all-time high. That high, reached back in February, came the day before the bottom fell out of the stock market, as the coronavirus crisis triggered the steepest, deepest – and fastest – stock market drop on record. And now we are in the midst of a prolonged bull-rally, as the markets have been trending upwards since bottoming out on March 23.What’s an investor to do? The natural inclination during a bear market is to defend the portfolio and make conservative plays toward defensive dividend stocks, while the inclination during a rally is to go with the winners and stake positions in the stocks that are climbing most rapidly. The two strategies don’t often overlap, and the future remains clouded even though sentiment is high for now.At Wells Fargo, strategist Christopher Harvey believes that defensive moves are obsolete for now, and that investors should “start adding risk.”“We’re starting to price in a less bad scenario. Things are getting slightly better at the margin… A few weeks ago, for the first time in a long time, we went overweight on value. Now, what we are telling [investors] is we want them to start putting risk into the portfolio,” Harvey said.The strategist is advising investors to look for stocks that are positioned for a strong comeback. These are note necessarily the stocks that have been doing best in the current rally; rather, they are stocks that will benefit most as the economy reopens. That reopening is happening now, in fits and starts, as some states continue their lockdown policies and others try to get back to business. With this in mind, we’ve opened the TipRanks database and pulled up three relevant stock calls from three of Wells Fargo's top analysts. These are stocks with at least 7% dividend yield, and in the eyes of the Wells Fargo analysts, at least 10% upside potential. Let's take a closer look. EQT Midstream Partners (EQM)We’ll start in the energy industry, with a $4.8 billion mid-cap player in the important midstream segment. EQM provides natural gas pipeline and storage services for the Pennsylvania/West Virginia/Ohio sections of the Appalachian basin. This region, in the rugged, low mountains of the East, is one of North America’s richest natural gas production areas, and a center of the fracking industry. EQM is also involved in that latter, providing water supply and waste-water disposal services for gas fracking companies.EQM holds a sound position in an essential industry, and has been able to maintain revenues and earnings despite the COVID-19 pandemic. Q1 earnings numbers beat the forecast by a wide margin. The $1.08 EPS was well ahead of the 95-cent estimate, while revenues grew 16.25% year-over-year to reach $453 million, 14% ahead of expectations.In addition, for income-minded investors, the company has made moves to maintain the dividend even in difficult times. Management lowered the payment – never a good look, really – but the new payout of 38.75 cents per share quarterly gives a yield of 7.43% and an annualized payment of $1.55 per share. These are solid numbers that significantly outperform the services industry average yield of 1.4%.Much of EQM’s potential is tied up in the Mountain Valley Pipeline. This project, in which the company is heavily invested, is delayed by regulatory and permitting hurdles, but is widely expected to come online in 2021.Covering this stock for Wells Fargo is analyst Michael Blum. Noting the pipeline delays, he writes at the bottom line, “EQM is well positioned to benefit from improving natural gas fundamentals heading into 2021 due to the expected decline in associated gas production. We see … the pending completion of MVP as positive…”Blum sets a $27 price target here, in support of his Buy rating. His target implies a healthy upside potential of 17%. (To watch Blum’s track record, click here)Overall, EQT Midstream gets a Moderate Buy from the analyst consensus, based on 3 Buy and 2 Hold ratings set in recent weeks. Shares are selling for $23.18, and the $23.20 average price target is less bullish than Blum’s. (See EQM stock analysis at TipRanks)BP PLC (BP)Next up, we move from mid-cap to industry-leading giant. BP, with a market cap of $93 billion, is one of the world’s largest oil and gas companies, and reported $278 billion in revenue for 2019. While that was down from the year before, the $10 billion in net profits beat the expected $9.7 billion.And then came Q1 2020. We all know the story. Back in April, oil prices dropped dramatically, as demand was quenched by the ongoing economic shutdowns. Oil producers don’t have the luxury of simply shutting off the pumps when demand falls; the equipment must be maintained, and it is not easy to restart a well that has been capped. The bounce back in prices since the April low has been helpful, but only partially. Even so, BP saw net profit fall 67% yoy in Q1, from Q1 2019’s $2.4 billion to the current figure of $800 million. Even though Q1 earnings dropped so drastically they remained positive, but looking ahead Q2 is expected to show a loss of 37 cents per share.Through everything, however, BP has kept up its dividend payment. The company remains committed to the payments, and has even increased its debt load to do so. The current dividend is 63 cents per share quarterly, annualized to $2.52, gives a yield of 9.65%. Compared to the 3% yield among utility peer companies, the attraction is clear.Roger Read, another of Wells Fargo’s analysts, is cautious here but also sees a path forward for BP. He writes, “…BP's expected free cashflow generation through 2022 should support reductions in leverage and capacity to raise its dividend in 2020 and beyond.”Read gives the stock a Buy rating, and backs it with a $31 price target implying room for 15% upside growth in the next 12 months. (To watch Read’s track record, click here)The Moderate Buy analyst consensus rating on BP is derived from 7 reviews, including 4 Buys and 3 Holds. The average price target of $32.20 suggests a 16% premium from the $27.81 current trading price. (See BP stock analysis on TipRanks)CenturyLink, Inc. (CTL)The last stock on our list here is a communications services firm, in the cloud-based tech niche. CenturyLink’s products offer customers solutions for networking and online security, a vital industry in today’s connected work environment – and even more vital during the current corona crisis, with so many office workers moving to telecommuting. The urgency of online security is clearer now than ever.That clear from CTL’s Q1 earnings, which not only grew 12% sequentially, but also beat the forecast by a penny. The 37 cents reported was even 8% higher than the year-ago quarter.CTL’s steady earnings underlie the company’s dividend. The payment has been stable for 5 quarters – and management recently announced that the next payout, set for June 12, will remain at 25 cents per share, or $1 annually. At this level, the dividend yields 9.43%, a solid return by any standard.Wells Fargo’s Jennifer Fritzsche, rated 5-stars in the TipRanks database, acknowledges that leading-edge tech company inhabit a capricious landscape, but is optimistic about CTL’s prospects. She writes, “In our view – the co. made its difficult capital allocations decisions last year and we see that dividend as secure near term. If one lesson will be (crystal) clear coming out of this crisis, it is that fiber is critical and necessary ‘railroad tracks’ (to quote WSJ) in our new normal. CTL has more of that asset than any public co.”Supporting her Buy rating on the stock, Fritzsche gives CTL a $12 price target, indicating room for 10% upside growth. (To watch Fritzsche’s track record, click here)While Fritzsche is optimistic here, her Wall Street peers remain cautious. CTL shares have a Hold from the analyst consensus, based on 2 Buys, 4 Holds, and 4 Sells. Shares are selling for $10.24, but the average price target is $9.91. Time will tell if Fritzsche’s bullish stance is the correct course for CTL. (See CenturyLink stock analysis at TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.


Hedge Funds Never Been Less Bullish On MannKind Corporation (MNKD)

Forest Products IIII - Fri, 05/06/2020 - 19:10

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]


Is Ion Geophysical Corp (IO) A Good Stock To Buy?

Forest Products IIII - Fri, 05/06/2020 - 19:09

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]


Here is What Hedge Funds Think About Great Panther Mining Ltd (GPL)

Forest Products IIII - Fri, 05/06/2020 - 19:09

The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]


Pyxus International, Inc. (PYX): Are Hedge Funds Right About This Stock?

Forest Products IIII - Fri, 05/06/2020 - 19:08

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]


Elon Musk calls for breakup of Amazon

Forest Products IIII - Fri, 05/06/2020 - 19:08

Elon Musk tweeted its ‘Time to break up Amazon’, after the tech giant said Musk’s upcoming COVID-19 book does not meet Amazon’s guidelines for sale.


Coronavirus Pandemic Can’t Sink Copa Holdings (CPA) Stock

Forest Products IIII - Fri, 05/06/2020 - 18:44

Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 […]


Parker-Hannifin Corporation (PH): Are Hedge Funds Right About This Stock?

Forest Products IIII - Fri, 05/06/2020 - 18:18

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]


Novavax Analyst Says DoD Funding Reflects Conviction In Platform, Ability To Deliver On Vaccine

Forest Products IIII - Fri, 05/06/2020 - 18:09

Novavax, Inc. (NASDAQ: NVAX) is landing financing deals that could help to successfully develop a vaccine for SARS-CoV, the virus that causes COVID-19.Novavax's Defense Department Funding The Gaithersburg, Maryland-based biotech said late Thursday that it has been granted funding of up to $60 million by the Department of Defense for manufacturing several components of the vaccine codenamed NVX-CoV2373 in the U.S.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.Novavax Analyst: Positive NanoFlu Readout Could Have Driven Increased Conviction The accent on domestic manufacturing is probably due to security reasons, Cantor Fitzgerald analyst Charles Duncan said in a note.Novavax's vaccine consists of stable, prefusion protein antigen made using its proprietary nanoparticle technology and includes its proprietary Matrix M adjuvant.The analyst said he expected funding from government organizations, although Novavax was not part of the "unofficial" list of five finalists for the White House's "Operation Warp Speed."The agreement signals conviction in Novavax's recombinant nanoparticle platform and its potential to deliver an efficacious vaccine for COVID-19, probably due to the recent positive Phase 3 readout for its NanoFlu vaccine, he said. Cantor has an Overweight rating and $45 price target for Novavax shares.In mid-May, the company received an incremental $384 million in funding from the Coalition for Epidemic Preparedness Innovations for its vaccine program."We are genuinely honored at the opportunity to protect our military personnel and their families who have devoted themselves to the needs of U.S. citizens and others worldwide," Novavax CEO Stanley Erck said in a statement. What's Next For Novavax Novavax said as part of the contract it will work with a U.S.-based biologics CDMO to manufacture the antigen component of NVX-CoV2373 for at least 10 million doses of vaccine to be used in Phase 2/3 studies and/or under an Emergency Use Authorization if one is approved by the FDA.It will also work with U.S.-based CDMOs to scale up production and manufacture of the Matrix-M adjuvant component of the vaccine.The company is conducting a Phase 1 study in healthy volunteers, with preliminary immunogenicity and safety data due in July."Forthcoming data this summer should provide a gauge of possibilities and probabilities for moving forward," said Cantor's Duncan. NVAX Price Action Novavax shares were up 2.31% at $45.69 at the time of publication Friday. Related Links:The Daily Biotech Pulse: Adamas Rallies On FDA Acceptance, Oxford Immunotech Reportedly Gets 0M Bid Coronavirus Vaccine Frontrunner Moderna Appoints Former Amgen Executive As CFO Latest Ratings for NVAX DateFirmActionFromTo Jun 2020JP MorganUpgradesUnderweightNeutral May 2020B. Riley FBRMaintainsBuy May 2020B. Riley FBRMaintainsBuy View More Analyst Ratings for NVAX View the Latest Analyst Ratings See more from Benzinga * The Daily Biotech Pulse: Regulatory Delay For Novartis' Multiple Sclerosis Drug, FSD Gets Nod For COVID-19 Study * Novavax Analyst Sees Leading Contender In Coronavirus Vaccine Race(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


Trump To Buffett: 'Should Have Kept The Airline Stocks'

Forest Products IIII - Fri, 05/06/2020 - 18:00

U.S. President Donald Trump held a press conference on Friday morning following a jobs report from the Labor Department that blew economist expectations out of the water.In his speech, Trump noted that plenty of smart experts have missed the mark when it comes to the resiliency of the U.S. economy amid the COVID-19 outbreak, and he specifically mentioned Wall Street legend and Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett."Warren Buffett sold airlines a little while ago. He's been right his whole life. But sometimes even somebody like Warren Buffett--I have a lot of respect for him--they make mistakes. They should have kept the airline stocks because the airline stocks went through the roof today and others did too. The whole market went through the roof," Trump said.Buffett On AirlinesBuffett sold Berkshire's entire stakes in Delta Air Lines, Inc. (NYSE: DAL), American Airlines Group Inc (NASDAQ: AAL), United Airlines Holdings Inc (NASDAQ: UAL) and Southwest Airlines Co (NYSE: LUV) back in April near their lowest points of the coronavirus sell-off.At Berkshire's annual shareholder meeting in early May, Buffett said he had been wrong to invest in airline stocks."I just decided that I'd made a mistake...in investing in the airlines business," Buffett said. "It's a very difficult business. The future is much less clear to me how the business will turn out."Since May 1, the four airline stocks Buffett sold are up between 40% and 90% each.Buffett & TrumpBuffett was a supporter of Trump's 2016 election opponent Hillary Clinton, but he has mostly remained silent on Trump since he took office."I'm not in the business of attacking any president, nor do I think I should be," Buffett said in a 2017 interview.On Friday, Trump said Americans who didn't panic and dump their stocks have been rewarded far quicker than many experts anticipated."If people didn't get rid of stocks in their 401(k)s, they're almost even. Think of it," Trump said.Benzinga's TakeA rebound in the stock market and the economy is a huge development when it comes to Trump's re-election prospects come November. Following Friday's rally, the SPDR S&P 500 ETF Trust (NYSE: SPY) is up 43.7% since March 23 and now down just 0.4% overall year to date.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Related Links:History Suggests Record 50-Day Stock Market Rally May Be Just The Beginning Here's What Elon Musk Thinks About Warren BuffettSee more from Benzinga * How Large Boeing, Delta Options Traders Are Positioning As Economy Reopens * Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios * Bartstool's Dave Portnoy Breaks Down About The Importance Of Diversification(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


Should You Buy Halliburton Company (HAL)?

Forest Products IIII - Fri, 05/06/2020 - 17:58

We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]


Trump Says Even Buffett Makes Mistakes With His Airline Exit

Forest Products IIII - Fri, 05/06/2020 - 17:45

(Bloomberg) -- President Donald Trump chided Warren Buffett’s recent move to exit his bets on the airline industry.“He’s been right his whole life, but sometimes even somebody like Warren Buffett -- I have a lot of respect for him -- they make mistakes,” Trump said Friday in a news conference at the White House. “They should have kept airline stocks, because the airline stocks went through the roof today and others did too.”Buffett abandoned his investments in four major U.S. airlines in recent months as the coronavirus pandemic swept the nation, curbing travel across the globe. He started piling into the industry in 2016, which went against his previous swearing off of airlines after a tumultuous USAir bet. At the annual meeting of his Berkshire Hathaway Inc. in May, he said the “world changed” for the airline industry.All four companies that Berkshire previously held soared this week after American Airlines Group Inc. said it would boost July flights 74% and jobs data showed an unexpected rebound in hiring. Delta Air Lines Inc. surged more than 40% this week, while American Airlines jumped 90%, Southwest Airlines Co. climbed more than 25% and United Airlines Holdings Inc. advanced more than 60%.Buffett’s assistant didn’t immediately return a message seeking comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.


Hedge Funds Done Buying Genworth Financial Inc (GNW)?

Forest Products IIII - Fri, 05/06/2020 - 17:30

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]


'Long Lines And Packed Flights': Casino Stocks Rise Following Vegas Reopening

Forest Products IIII - Fri, 05/06/2020 - 17:11

Casino stock investors received some good news this week as early reports out of Las Vegas suggest the reopening of major casino resorts was met with strong initial demand.However, one analyst said on Friday that Vegas still has a long road to full recovery from its shutdown.What Happened?A number of Las Vegas casinos opened their doors for the first time on June 4, and Bank of America analyst Shaun Kelley said initial demand was so strong that several operators are now opening additional properties ahead of schedule."At 12:01AM on June 4th, Las Vegas casinos officially reopened. From local reports and our channel checks, the demand was strong with long lines and packed flights, similar to most regional gaming markets," Kelley wrote in a note.Why It's ImportantDemand was so strong that Caesars Entertainment Corporation (NASDAQ: CZR) has bumped up its planned opening of Harrah's and MGM Resorts International (NYSE: MGM) is planning to open Excalibur next week.But while the initial surge of Vegas demand was much better than feared, Kelley said room rates will likely suffer significantly in the medium term. Kelley estimates quoted room rates on the Vegas Strip are down 36% in June and 46% in July compared to a year ago, which will negatively impact operator margins. Kelley said the cancellation of Vegas events and conferences will continue to weigh on room rates given these events drive demand for some of the Strip's highest-priced rooms.Even once events ramp back up, Kelley is projecting convention attendance will drop 15% in the second half of the year.Kelley estimates Las Vegas Sands Corp. (NYSE: LVS) will endure the smallest drops in average room rates in the near term, with average rates in June and July falling 23% and 40%, respectively. Wynn Resorts, Limited (NASDAQ: WYNN) has the highest average room rates on the Strip, and Kelley estimates it will endure the largest drop in average rates. He projects 43% and 53% declines in June and July, respectively.Benzinga's TakeStrong initial demand was the first hurdle for Vegas casino stocks to overcome in the near-term. Now that the Strip is reopened, the focus will shift to room rates and margins to determine just how profitable these casino stocks can be in a sub-optimal environment.For investors looking to play the Vegas recovery, Bank of America has the following ratings and price targets for major Las Vegas casino operators: * Las Vegas Sands, Buy rating and $61 target. * Wynn, Buy rating and $95 target. * MGM Resorts, Underperform rating and $15 target.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Related Links:Las Vegas Casinos Reopen This Week, And Here's What Investors Should Expect Analyst: Why Penn National And Boyd Could Outperform As US Casinos ReopenLatest Ratings for MGM DateFirmActionFromTo May 2020UBSMaintainsNeutral May 2020Credit SuisseAssumesNeutral May 2020B of A SecuritiesDowngradesNeutralUnderperform View More Analyst Ratings for MGM View the Latest Analyst RatingsSee more from Benzinga * 7 Sin Stocks To Buy During The Coronavirus Shutdown * Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


FireEye Inc (FEYE): Hedge Funds Are Snapping Up

Forest Products IIII - Fri, 05/06/2020 - 17:07

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]


Zoom in 'early stages' of security deal with Google: CFO

Forest Products IIII - Fri, 05/06/2020 - 16:58

Yahoo Finance's Alexis Christoforous and Brian Sozzi speak to Kelly Steckleberg, Zoom CFO, about the latest earnings report.


Is Everbridge, Inc. (EVBG) A Good Stock To Buy?

Forest Products IIII - Fri, 05/06/2020 - 16:47

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]


Slack beat expectations, cuts deal with Amazon

Forest Products IIII - Fri, 05/06/2020 - 16:46

Yahoo Finance's Alexis Christoforous and Brian Sozzi speak to Slack CFO Allen Shim about its latest earnings report, how the COVID-19 pandemic has created 'a new category,'new customers including Verizon and Amazon and more.


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by Dr. Radut