Big Money Drives O’Reilly Automotive

And the auto parts retailer could rise even more due to strong earnings and sales growth. But another likely reason is Big Money lifting the stock.

O’Reilly Automotive Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And O’Reilly Automotive has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals ORLY has made the last two years.

The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last two years, the stock attracted 15 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

O’Reilly Automotive Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, O’Reilly Automotive has been growing sales and earnings at double-digit rates. Take a look:

  • 3-year sales growth rate (+11.9%)
  • 3-year EPS growth rate (+24.9%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, ORLY has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

ORLY has a lot of qualities that are attracting Big Money. It’s made this list 29 times since 2010, with its first appearance on 03/22/2010…and gaining 1,568.4% since. The blue bars below show the times that O’Reilly Automotive was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the consumer discretionary sector according to the MAPsignals process. I wouldn’t be surprised if ORLY makes additional appearances in the years to come. Let’s tie this all together.

O’Reilly Automotive Price Prediction

The O’Reilly Automotive rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in ORLY at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

What Is Next for the Russian Economy?

The first round of peace talks between Russia and Ukraine failed to make any progress but the two sides agreed to meet again in coming days.

I’m not really sure if that means anything as Russia now has a 40 mile convoy of military equipment and troops headed directly for the Ukraine border. At the same time, most reports indicate that fighting on the ground is intensifying and that Belarus is now preparing to deploy troops to help Russia. It’s still not clear what impact the array of sanctions the West has slapped on Russia might have on global financial markets and trade flows but the Russian economy is already being wrecked.

Russian central bank

The Russian central bank more than doubled its benchmark interest rate to 20% as it attempted to curb a run on banks and stop the fallout in the Russian ruble. At least one major Russian bank is said to be on the brink of collapse.

Meanwhile, the Russian central bank faces being cut off from a large portion of its foreign financial reserves under new restrictions from the West which will make it tougher for Russia to defend its currency. Keep in mind, the Russian ruble fell -30% against the US dollar, making it now worth less than one cent.

Some economists predict the country could face a total economic collapse if the extreme measures are kept in place for very long. Russia is now said to be preparing countermeasures against countries supporting sanctions imposed by the U.S. and its European allies. Most experts think it’s unlikely that Russia will curb its oil or gas supplies as they account for a sizable portion of the country’s GDP. However, most Russia experts also agree that it’s hard to predict what Putin might do if he feels like he’s been backed into a corner and humiliated over his miscalculation that Ukraine would be an easy land grab.

Inflation in USA

The most immediate threat to the U.S. at the current moment is that the conflict will push inflation even higher and the Federal Reserve will eventually have to get more aggressive in its efforts to bring prices down, possibly pushing the economy into a recession.

A lot of bulls believe that the U.S. consumer is actually strong enough to weather a period of both elevated inflation and higher borrowing costs thanks to healthy savings and the strong increase in asset prices witnessed over the past year and a half. I question that perspective, as I’ve seen some recent data that shows the US consumers savings level is getting back to pre-Covid levels and the higher costs of energy and housing might soon start taking a bigger bite. In fact, many bears warn that inflation is already eroding savings as well as spending power with double-digit price gains for consumer goods adding an estimated $250 in expenses for the average American household.

Investors will be scrutinizing the ISM Manufacturing Index today for signs that factory level prices might be starting to ease. The gauge climbed in January after easing for two months in a row at the end of 2021. Construction Spending is also due today. On the earnings front, highlights include AutoZone, Dominos Pizza, Hewlett Packard, Hormel Foods, J.M. Smucker, Kohl’s, Ross Stores, Salesforce, and Target.

What Fuels The Stock Market Now?

An outstanding earnings season and signs that economic activity are picking back up are clashing with unrelenting inflation, difficulty finding more labor, and continued supply chain logjams.

Inflation

Most insiders believe inflation has further to climb, though the consensus right now is calling for a peak around the beginning of Q2 next year. With big shopping holidays in the U.S. coming up, followed closely by Chinese New Year at the beginning of February 2022, shipping and transportation logjams aren’t expected to find much relief in the near-term.

Meaning inflation pressures will likely continue. How far inflation will climb as the severe supply chain dislocations drag on is a huge unknown. Some Wall street investors are concerned that the Fed might feel compelled to end its asset purchases and hike rates much sooner than expected if monthly inflation keeps accelerating.

What might be even more worrisome is the fear that some of these price increases could be more permanent in nature, so how much overall inflation will pull back in the long run is starting to become a bigger talking point.

Demand and supply chain

Supply chain insiders warn that many companies are front-loading inventories in an effort to avoid running out of critical materials, which could bite in the long run if demand suddenly drops off. A lot of manufacturers have also increased production capacity for products that currently face shortages. The risk is that once back orders are filled and demand retreats, stockpiling and excess production could result in an oversupply situation in some areas, along with much lower profits and total revenues.

Another worry right now is that demand starts to retreats due to the current inflationary environment especially with everyday items like food and gasoline costing substantially more. That has investors anxious to see the latest Consumer Sentiment read being released today which is expected to edge higher vs. last month.

Investors are closing tracking the inflation expectation gauges in the report as typically the higher those climb, the more consumers tend to pull back on spending.

Data to watch next week

Looking towards next week, the economic data flow picks up with key releases including Empire State Manufacturing on Monday; Retail Sales, Import/Export Prices, Industrial Production, Business Inventories, and the NAHB Housing Market Index on Tuesday; Housing Starts and Building Permits on Wednesday; and the Philadelphia Fed Index on Thursday.

On the earnings front, Q3 reporting is just about wrapped up with companies in the S&P 500 index reporting revenue growth of more than +17%, the second highest on record behind only Q2 2021’s growth of over +25%, according to FactSet. Earnings themselves are on track to exceed +40%. AstraZeneca is today’s earnings highlight. Earnings next week include several big retailers which will provide some more clues as to how consumer demand is trending as well as updates on supply chain struggles. Investors are also keen to hear how holiday hiring is going.

Key earnings reports next week will include Advanced Auto Parts, Lucid, Tyson, and Warner Music on Monday; Home Depot and Walmart on Tuesday; Bath & Body Works, Cisco, Lowe’s, NVIDIA, Target, TJX, and Victoria’s Secret on Wednesday; Alibaba, Applied Materials, Intuit, Kohl’s, Macy’s, Palo Alto Networks, Ross Stores, and Williams Sonoma on Thursday; and The Buckle and Foot Locker on Friday.

Checking in on the geopolitical front, the U.S. is warning that Russia may be planning a full-scale invasion of Ukraine. U.S. officials say they’ve briefed their EU counterparts about concerns over a possible military operation, citing a buildup of Russian troops along the Ukraine border. Tensions are boiling still in Belarus and Russia is fanning the flames on that front as well.

SP500 commentary

ES ##-## (Daily) 2021_11_14 (1_49_54 AM)

The bearish accumulation divergence played very well last week. Moreover, the Advance Decline Line is weaker than the price is. It is also a negative factor in the short term. Potentially SP500 started the formation of the bull flag. Finding support at lower levels would be a great buying point with a target of 4800.

The major economic indicators are still bullish despite rising inflation. 4500 level is a psychological level bears will target if 4600 fails. Current levels can be considered only for intraday trading. At the same time, lower levels are needed to get a good risk/reward ratio for swing traders.

For a look at all of today’s economic events, check out our economic calendar.

Earnings Week Ahead: Advance Auto Parts, Home Depot, Nvidia and Ross Stores in Focus

Earnings Calendar For The Week Of November 15

Monday (November 15)

IN THE SPOTLIGHT: ADVANCE AUTO PARTS

The leading automotive aftermarket parts retailer Advance Auto Parts is expected to report its third-quarter earnings of $2.87 per share, which represents year-over-year growth of over 2% from $2.81 per share seen in the same period a year ago.

The Raleigh, North Carolina-based company would post revenue growth of nearly 2% to $2.6 billion up from $2.54 billion registered a year earlier. The company has beaten earnings per share (EPS) estimates three times in the last four quarters.

Advance Auto Parts (AAP) operates in a defensive (recession-resistant) category and has one of the largest long-term EBIT margin expansion opportunities in our coverage (we estimate 300-400 bps over time). COVID-19 slowed parts of AAP’s transformation but gross and EBIT margin upside from internal initiatives is still expected beginning in 2021,” noted Simeon Gutman, equity analyst at Morgan Stanley.

“Significant and improving FCF generation plus share repurchases likely to enhance EPS growth. We think the combination of a defensive category, AAP’s progress generating stable top-line growth, and significant margin upside all make for an upside case. Slowing topline momentum and associated risk to margin trajectory balance the risk/reward skew.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 15

Ticker Company EPS Forecast
AAP Advance Auto Parts $2.87
JJSF J&J Snack Foods $1.28
CMP Compass Minerals International $0.62

Tuesday (November 16)

IN THE SPOTLIGHT: HOME DEPOT

The largest home improvement retailer in the United States, Home Depot, is expected to report its third-quarter earnings of $3.39 per share, which represents year-over-year growth of about 7% from $3.18 per share seen in the same period a year ago.

The home improvement retailer would post revenue growth of over 4% to $34.942 billion from $33.54 billion a year earlier. In the last two years, the company has beaten earnings per share (EPS) estimates in most of the quarters with a surprise of over 5%.

Home Depot shares have gained nearly 40% so far this year. The stock closed 1.36% higher at $372.63 on Friday. Home Depot’s better-than-expected results, which will be announced on Nov 16, could help the stock hit new all-time highs.

“Shares of Home Depot have risen and outpaced the industry year to date. The company boasts a robust surprise trend with the fifth straight quarter of earnings and sales beat in second-quarter fiscal 2021. Results gained from continued demand for home improvement projects, the robust housing market and ongoing investments. The company is effectively adapting to the demand for renovations and construction activities, driven by prudent investments,” noted analysts at ZACKS Research.

“It is gaining from growth in Pro and DIY customer categories as well as digital momentum. However, in the second quarter, the company witnessed year-over-year moderation in its comparable-store sales growth. This was due to the lapping of the high demand environment for home-improvement projects seen last year. Soft gross margin, stemming from increased penetration of lumber, has also been a drag.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 16

Ticker Company EPS Forecast
ICP Intermediate Capital £32.70
HSV Homeserve £6.60
ARMK Aramark $0.19
HD Home Depot $3.35
DLB Dolby Laboratories $0.35
LAND Land Securities £18.78
IMB Imperial Brands PLC £138.10

Wednesday (November 17)

IN THE SPOTLIGHT: NVIDIA

The Santa Clara, California- based multinational technology company, Nvidia, is expected to report its third-quarter earnings of $1.11 per share, which represents a year-over-year decline of over 60% from $2.91 per share seen in the same period a year ago.

The company, which designs graphics processing units for the gaming and professional markets, as well as system on a chip unit for the mobile computing and automotive market would post year-over-year revenue growth of over 40% to $6.8 billion.

According to Oppenheimer analyst Rick Schafer, Nvidia will report above-consensus October quarter results, lifting its price target to $350 from $235 and rating the company “outperform”.

“Supply constraints continue to weigh on the group, though we see Nvidia (NVDA), a top semi-supplier, as better positioned to secure capacity. The company’s leading soup-to-nuts software/hardware platform solidifies its AI accelerator dominance,” Oppenheimer analyst Rick Schafer wrote in his report, reported by Reuters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 17

Ticker Company EPS Forecast
BLND British Land Company £8.75
SGE The Sage Group £11.11
LOW Lowe’s Companies $2.33
CPRT Copart $0.99
NVDA Nvidia $1.11
CPA Copa -$0.19
KLIC Kulicke And Soffa Industries $2.07
TTEK Tetra Tech $1.00
HI Hillenbrand $0.91
SSE SSE £11.80

Thursday (November 18)

IN THE SPOTLIGHT: ROSS STORES

The second-largest off-price retailer in the U.S., Ross Stores, is expected to report its third-quarter earnings of $0.79 per share, which represents a year-over-year decline of over 24% from $1.02 per share seen in the same period a year ago.

The U.S. home fashion chain would post year-over-year revenue growth of nearly 16% to $4.4 billion. The company has beaten earnings per share (EPS) estimates three times in the last four quarters.

“Market share capture from competitor bankruptcies & store closures, favourable customer fundamentals, and high exposure to Hispanics, the fastest-growing US population segment, support 6-8% long-term revenue growth and 10%+ annual EPS. Upward EPS revisions appear an ongoing positive share price catalyst. Profit flow-through is magnified when comps exceed the 1-2% plan in a typical year,” noted Kimberly Greenberger, equity analyst at Morgan Stanley.

“The ‘everyday value’ proposition fosters comp outperformance, while recessions accelerate customer acquisition. Low average selling prices ($8-10/unit) and narrow gross margin render selling online unprofitable at this price point.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 18

Ticker Company EPS Forecast
NG National Grid £15.70
HLMA Halma £21.19
RMG Royal Mail -£6.30
NJR New Jersey Resources $0.08
KSS Kohl’s $0.69
HP Helmerich & Payne -$0.50
MMS Maximus $0.87
BJ BJs Wholesale Club Holdings Inc $0.79
M Macy’s $0.29
BERY Berry Plastics $1.53
NUAN Nuance Communications $0.20
BRC Brady $0.76
ROST Ross Stores $0.79
INTU Intuit $0.97
FTCH Farfetch -$0.24
ESE ESCO Technologies $0.78

Friday (November 19)

Ticker Company EPS Forecast
BKE Buckle $0.80
FL Foot Locker $1.34

 

Wall Street Closes at Record But Facebook Weighs

Facebook Inc, down 3.92%, was the biggest drag on the S&P 500 and Nasdaq, after the company warned that Apple Inc’s new privacy changes would weigh on its digital business. Shares of the social media company closed below its 200-day moving average for the first time since March 8, a technical support level that could indicate further declines.

Facebook has other issues, certainly the earnings report wasn’t as stellar,” said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.

“Then pile on the issues with the whistleblower, what they knew, what they didn’t know, how they set themselves up to benefit themselves even at the risk of kids and people that use the platform. That is going to kind of hang over it.”

However, the benchmark S&P index scored a new high, lifted by names with big market capitalizations. Nvidia Corp gained 6.70% to close at a record high of $247.17, while Amazon.com Inc advanced 1.68% and Apple rose 0.46%.

Support also came from a 6.95% advance in United Parcel Service Inc and a 2.03% rise in General Electric Co on the heels of their quarterly results.

The Dow Jones Industrial Average rose 15.73 points, or 0.04%, to 35,756.88; the S&P 500 gained 8.31 points, or 0.18%, at 4,574.79; and the Nasdaq Composite added 9.01 points, or 0.06%, at 15,235.72.

Earnings at S&P 500 companies are expected to grow 35.6% year-on-year in the third quarter, with market participants gauging how companies are navigating supply-chain bottlenecks, labor shortages and inflationary pressures.

“(The market) is getting tired. They ran them up ahead of earnings because everyone is expecting them to be good and robust, and they are … but the market feels tired to me now way up here,” said Polcari.

While nearly all 11 S&P sectors rose on the session, defensive plays such as utilities and real estate were among the best performers, indicating some caution in the market.

After the closing bell, Microsoft Corp gained 1.29% while Google parent Alphabet Inc slipped 0.24% following their quarterly results.

Data showed U.S. consumer confidence unexpectedly rebounded in October as concerns about high inflation were offset by improving labor market prospects. A Commerce Department report showed sales of new single-family homes surged 14.0% in September.

Ross Mayfield, investment strategist at Baird in Louisville, Kentucky, said with indexes at or near record levels, a run of good economic data could increase investor concerns the Federal Reserve may pull its timeline for a rate hike forward.

The central bank’s next policy announcement is expected on Nov. 3 after a two-day meeting.

Shares of Hasbro Inc climbed 3.23% after the toy maker posted an upbeat third-quarter profit even as it warned of a hit to holiday sales from supply chain issues.

Declining issues outnumbered advancers on the NYSE by a 1.13-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored decliners.

The S&P 500 posted 69 new 52-week highs and no new lows; the Nasdaq Composite recorded 144 new highs and 79 new lows.

Volume on U.S. exchanges was 12.34 billion shares, compared with the 10.41 billion average for the full session over the last 20 trading days.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Chuck Mikolajczak; Editing by Richard Chang)

Why UPS Stock Is Up By 7% Today

UPS Stock Rallies After Strong Quarterly Report

Shares of UPS gained strong upside momentum after the company released its third-quarter results. UPS reported consolidated revenue of $23.2 billion and adjusted earnings of $2.71 per share, beating analyst estimates on both earnings and revenue.

UPS increased its consolidated adjusted operating margin target to approximately 13% in 2021. Adjusted return on invested capital is expected to be around 29% this year.

The market reacted positively to the report as UPS showed strong revenue growth, beat analyst estimates and raised its full-year guidance. As a result, the stock opened with a gap up and made an attempt to settle above the $220 level.

What’s Next For UPS Stock?

UPS stock was under pressure after the second-quarter earnings report as investors focused on supply chain disruptions, rising costs and other challenges, but the third-quarter report indicated that the company’s business remains strong in today’s market environment.

Currently, analysts expect that UPS will report earnings of $11.21 per share in 2021 and $11.7 per share in 2022, so the stock is trading at 19 forward P/E which looks rather cheap for today’s market. Analyst estimates remained stable in recent months, but it looks that they will be adjusted in the upcoming days after the strong earnings report.

UPS stock may attract additional interest ahead of the holiday season, although some value-oriented investors may prefer to bet on UPS peer FedEx, which suffered a significant pullback in recent months and is trading at 11 forward P/E.

It should be noted that RSI for UPS stock has reached the extremely overbought territory, and it is already close to yearly highs that were tested back in May. Technically, the risks of a pullback are increasing as the stock managed to get from the $177 level to the $220 level without any pullback. However, the fundamental story looks strong, so UPS shares have a good chance to settle above the $220 level and move higher in the upcoming weeks.

For a look at all of today’s economic events, check out our economic calendar.

Why Novavax Stock Quickly Rebounded After Sell-Off

Novavax Stock Rebounds As Traders Focus On Company’s Potential Outside U.S.

Shares of Novavax have found themselves under strong pressure last week, after the company reported its second-quarter results. The market was concerned by the company’s decision to submit for the emergency use authorization of its coronavirus vaccine in the U.S. in the fourth quarter as it was previously expected to do this in the third quarter.

On Friday, the stock made an attempt to settle below the $190 level as traders rushed out of Novavax shares on concerns about new delays. However, the stock quickly gained upside momentum and moved towards recent highs. Today, Novavax stock made an attempt to get to the test of the $250 level.

It looks that the market decided to focus on Novavax potential outside U.S. According to recent reports, Novavax vaccine can be approved in India without emergency use authorization in the U.S. India is a huge market with a population of more than 1.3 billion, and its vaccination rate is less than 10%, so it needs all vaccines that it can get.

What’s Next For Novavax Stock?

In the previous article on Novavax, I noted that the stock’s near-term performance would depend on whether it remains a part of the big “vaccine trade”.

Judging by the stock price dynamics in recent trading sessions, the market has easily shrugged off worries about delays in the U.S. and decided to focus on the company’s potential in India and other markets.

It is also possible that traders who have taken some profits off the table in high-flying vaccine stocks like Moderna and BioNTech have shifted some of the funds to Novavax to bet on the vaccine stock which has not yet rallied to all-time high levels.

In case the company gets positive news from India in the upcoming months, the stock will have a good chance to develop sustainable upside momentum.

For a look at all of today’s economic events, check out our economic calendar.

Best Dividend Stocks August 2021

The hallmark way I go about finding the best dividend stocks…the outliers is by looking for quiet Big Money trading activity. Oftentimes, that can be institutional activity. I’ll go over why following the Big Money is so important in a bit. But, the 5 stocks I see as long-term dividend growth candidates are MA, SHW, WSM, EBAY, & ORCL.

Over decades, I’ve learned that the true tell on great stocks is that big money consistently finds its way into the best companies out there… especially dividend paying stocks. Some of the biggest returns ever have come from holding stocks for many years and reinvesting dividends.

I want the odds on my side when looking for the highest quality dividend stocks…and I own many of them.

So, let’s get into it.

Up first is Mastercard Inc. (MA), which is a large credit card company. They’ve been raising their dividend for years.

Let’s first start with the technical picture.

When deciding on a strong candidate for long-term dividend growth, I look for stocks leading in price:

  • 1-month performance (+7.08%)
  • Historical Big Money buy signals

Below are the Big Money signals Mastercard has made since 2015. Blue bars are showing that MA was seeing big buy activity according to MAPsignals. Typically, the more Big Money signals, the stronger the stock:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Mastercard has a strong dividend history:

  • 3-year dividend growth rate (+45.7%)
  • Current dividend per share = .44
  • Forward yield = .45%
  • 3-year earnings growth rate (+25.12%)

Next up is Sherwin-Williams Co. (SHW), which is a leading seller of paint materials. They’ve also been a dividend grower for years.

When deciding on a strong candidate for long-term dividend growth, it’s a good idea to look for many years of dividend increases.

Now let’s look at the recent performance:

  • 1-month performance (+4.95%)
  • Historical big money signals

Below are the big money signals that Sherwin-Williams has made since 2015. I expect more buy signals in the years to come.

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Sherwin-Williams has a nice dividend history. Their earnings growth has been stellar as well:

  • 3-year dividend growth rate (+16%)
  • Current dividend per share = .55
  • Forward yield = .77%
  • 3-year earnings growth rate (+11.87%)

Next, I’m looking at Williams-Sonoma, Inc. (WSM), which is a leading home retailer company. They have a solid dividend history.

When deciding on a strong candidate for long-term dividend growth, recent underperformance is not a bad thing:

  • 1-month performance (-1.15%)
  • Historical Big Money signals

Below are the big money signals that Williams-Sonoma has made since 2015. It’s recently showed a Big Money buy signal:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, WSM has a strong dividend history:

  • 3-year dividend growth rate (+9%)
  • Current dividend per share = .59
  • Forward yield = 1.5%
  • 3-year earnings growth rate (+46.58%)

Next, I’m looking at eBay, Inc. (EBAY), which is a leading online auction marketplace. They recently added a dividend.

When deciding on a strong candidate for long-term dividend growth, recent outperformance is great:

  • 1-month performance (+6.86%)
  • Recent Big Money signals

Below are the Big Money signals that eBay has made since 2015.

Chart, histogram

Description automatically generated

On top of technicals, when deciding on the best dividend stock, let’s check up on the fundamentals. As you can see, eBay has recently started paying a dividend.

  • 1-2 year dividend growth rate (+14%)
  • Current dividend per share = .18
  • Forward yield = .98%
  • 3-year earnings growth rate (+130.48%)

Lastly, I’m looking at Oracle Corp. (ORCL), which is a leading enterprise technology company. They’ve been growing their dividend for years.

When deciding on a strong candidate for long-term dividend growth, I like to look for recent leaders:

  • 1-month performance (+12.11%)
  • Recent Big Money signals

Below are the Big Money signals that ORCL has made since 2015.

ChartDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you gotta see if the fundamental picture supports a long-term investment. Oracle has been a steady grower:

  • 3-year dividend growth rate (+11%)
  • Current dividend per share = .32
  • Forward yield = 1.46%
  • 3-year earnings growth rate (+93.1%)

The Bottom Line

MA, SHW, WSM, EBAY, & ORCL represent solid dividend choices. Given the strong historical dividend growth and Big Money signals, these stocks could be worth an extra look for a dividend investor.

Disclosure: the author holds no positions in MA, SHW, WSM, EBAY, & ORCL at the time of filming.

To learn more about the MAPsignals process, click here: www.mapsignals.com

Disclaimer

Why GEO Group Stock Is Up By More Than 35% Today

GEO Group Video 09.06.21.

Short Squeeze Mania Continues

Shares of GEO Group, a real estate investment trust specialized in secure facilities, gained strong upside momentum as traders continued to search for stocks with high short interest.

Recent moves in “meme stocks” like GameStop or AMC Entertainment Holdings have pushed speculative traders to search for stocks with significant short interest.

Some of these stocks may not have a wide following on WallStreetBets or similar forums, but it looks that short-sellers are in danger in every crowded trade in today’s market.

There was no clear catalyst for the move. The company has recently appointed a new CEO while the previous CEO moved to the position of Executive Chariman of GEO’s Board of Directors, but these changes are hardly sufficient enough to make the stock double in less than two weeks.

What’s Next For GEO Group Stock?

GEO Group shares have been under pressure for many months as investors sold REITs that deal with correction facilities due to increasing political pressure on such business. As a result, the stock became cheap. Analysts expect that GEO Group will report earnings of $1.23 per share in 2021 and $1.08 per share in 2022.

At a price of $9.50, GEO shares are trading at less than 9 forward P/E for 2022. The company’s cheap valuation highlights a key difference between GEO Group and other short squeeze stocks like GameStop and AMC as GEO is profitable right now.

At the same time, it should be noted that the market expects that GEO Group’s financial performance will decline over time which explains the recent pressure on the company’s shares. I’d also note that GEO’s FFO estimates (which are important for REITs) are mostly stable, but it looks that investors are worried about the company’s future in the long-term.

In the near term, the dynamics of GEO shares will depend on how short sellers managed to deal with the rapid increase of GEO share price, and whether the current upside move will attract more retail traders. I’d note that it is not clear whether GEO Group can get the same cult following like GameStop or AMC as investing in a “prison stock” may not be attractive for some traders regardless of potential profits.

For a look at all of today’s economic events, check out our economic calendar.

Martin Marietta To Buy Heidelbergcement’s Western U.s. Assets For $2.3 Billion

The Raleigh, North Carolina-based company said it entered an agreement with HeidelbergCement’s U.S. affiliate, Lehigh Hanson Inc, to buy assets including 17 active aggregates quarries and two cement plants.

The deal is expected to close in the second half of this year and will be accretive to earnings per share in the first full year following closing, Martin Marietta said.

(Reporting by Derek Francis in Bengaluru; Editing by Devika Syamnath)

Why Shares Of Novavax Are Down By 8% Today?

Novavax Video 10.05.21.

Novavax Shares Dive Amid Reports That The Company Would Not Seek Emergency Use Authorization In U.S. Until June

Shares of Novavax found themselves under strong pressure after reports indicated that the company would not seek emergency use authorization in the U.S. for its coronavirus vaccine until June.

Shares of Novavax showed great performance in 2020 as traders rushed to buy shares of all vaccine makers. The start of 2021 was strong as well, but the stock lost momentum in mid-February and lost half of its value since then.

At this point, it is not clear when Novavax will seek emergcy use authorization for its vaccine, and the decision from the regulator may also take some time as it was the case with other coronavirus vaccines. In this light, Novavax investors will have to wait for several months before they learn the outcome of this story, which is bearish for the stock.

What’s Next for Novavax?

Novavax is set to report earnings today, after the market close. Analysts expect that Novavax will report a loss of $3.60 per share. The company’s earnings are projected to rise fast and reach $21.32 for the full year 2021. In 2022, Novavax is projected to report earnings of $32.84 per share. The stock is trading at just 5 forward P/E for 2022 which is extremely cheap.

However, it should be noted that analyst forecasts depend on the speed of emergency use authorization for the company’s coronavirus vaccine. As the latest reports indicate that it could be delayed, analysts may soon adjust their earnings estimates. In addition, it is not clear whether revenue from the vaccine will be recurring, although this uncertainty impacts shares of all vaccine makers.

In this light, traders should not focus on the extremely cheap forward P/E as the company’s success depends on a number of catalysts. If the company fails to seek emergency use authorization for its COVID-19 vaccine in June, the stock may find itself under more pressure.

For a look at all of today’s economic events, check out our economic calendar.