Coinbase To Let Users Purchase Its Upcoming NFTs Using Mastercard

Coinbase on Tuesday penned a deal with payments behemoth Mastercard, enabling users to purchase its non-fungible tokens or otherwise known as  NFTs, using credit and debit Mastercards.

The agreement classifies NFTs as “digital goods”, enabling a broader group of consumers to purchase the digital collectibles.

Buying NFT’s, especially for those who are new to the space, hasn’t been a cakewalk. Buyers first need to create a crypto wallet, buy cryptocurrencies and then purchase NFTs using cryptos such as Bitcoin or Ethereum in an online marketplace like OpenSea or Rarible.

But according to Mastercard, getting more and more people involved in the burgeoning NFT market through a simple payment process – not involving cryptos – not only supports more NFT artists but also makes these collectibles more accessible.

“Buying digital goods should be as simple as buying a T-shirt or coffee pods on an e-commerce site. You can make your purchase with one click — that’s it,”

Raj Dhamodharan, EVP of blockchain and digital asset products at Mastercard, stated in a release.

He also noted that Mastercard will utilize its acquisition of CipherTrace, a crypto intelligence company, to enhance the safety of NFT purchases.

Coinbase’s Cup of NFTs

Coinbase first announced the launch of its NFT marketplace in October 2021, giving users the opportunity to mint, collect, sell and even share NFTs. The exchange soon announced that it reached over one million sign-ups.

Coinbase NFT platform still hasn’t gone live, but it currently has a waitlist for users to sign up and get early access.

The exchange’s NFT has also polled its followers, asking for their favorite NFTs, to better know users’ expectations and include their preferences in its upcoming NFT marketplace.

While Coinbase’s move has been very on-trend, it arrives late to the NFT-credit card integration conversation.

Other popular NFT marketplaces have already explored the possibility of integrating credit and debit cards for NFT payments. Rarible offers the option of buying an NFT from its array using Mastercard or Visa cards.

Buying NFTs With Credit Card

Many newcomers have been seeking ways to enter the NFT token system without the need for cryptocurrencies. Buying an NFT directly with credit or debit cards is something that many users prefer.

For instance, Tallinn-based crypto exchange Switchere introduced direct purchase of NFTs from SpaceSeven marketplace with credit or debit cards. This uses a Switchere widget, integrated into the marketplace that starts accepting payment via cards during checkout.

Though the payment process might sound easier with credit cards, it does come with few implications. Micah Carnahan, crypto expert and writer says, “the use of debt to purchase volatile assets like NFTs carries its own risks.”

According to him, if a user purchases an NFT using a credit card and fails to pay off the balance, there are chances that the user might lose money, especially when the price of the NFT goes down.

It is also important to note that the traditional way of buying NFTs would incur a multitude of fees such as the purchase of the NFT comes with its own gas fee. Likewise, buying an NFT with a credit card will come with a credit card processing fee.

IPAY: An ETF to Profit From International Air Travel Recovery in 2022, With Some Risk Protection

More than one and a half years after closing its borders with most of Europe including the U.K., South Africa, Brazil, India, and China due to the pandemic, the U.S. opened them to fully vaccinated passengers from November 2021, thus paving the way for families and friends to be reunited, businessmen to finally have a face to face meeting with colleagues and travelers to explore new destinations.

Despite some pandemic uncertainty persisting whereby some U.S. airlines and other businesses reported a pullback in October, the travel sector is bouncing back from 2020 lows with the number of international flight departures steeply inching back up to 2019 levels as shown by the green chart below.

https://static.seekingalpha.com/uploads/2022/1/11/49663886-1641889722922848.png

Source: Bureau of Transportation statistics

Now, to profit from more international business travel, you can invest in airlines or in payment processors like American Express (AXP) whose revenues were severely impacted from mid-2020 after the cancellation of trans-Atlantic flights (as shown in the pale blue chart below) and has still not yet recovered from its pre-pandemic highs.

Using the ETF option instead of investing individually

Easing restrictions on international travelers should also be beneficial to Discover Financial (DFS), another company that has not regained its 2019 revenue levels, as well as MasterCard (MA) and Visa (V). These two companies, whose share prices have been rising since December, underwent a faster recovery by taking advantage of the move to cashless payment, a secular trend accelerated by the pandemic. This consists of effecting electronic payments instead of using paper notes and has been accelerated by the availability of smartphones using QR (Quick Response) codes. Supported by smartphone devices, the value of global mobile payments is forecast to climb from $1.5 trillion in 2020 to $5.4 trillion by 2026, according to data by Mordor Intelligence.

https://static.seekingalpha.com/uploads/2022/1/11/49663886-16418897230331607.png

Source: ycharts.com

Now, instead of individually investing in all the companies I have mentioned, there is the ETFMG Prime Mobile Payments ETF (IPAY) option. Incepted in 2015, it provides exposure to 55 stocks in the payments industry, which, through companies like Block (SQ) and PayPal (PYPL), is experiencing a shift from credit card and cash transactions to digital and electronic methods. As shown in the chart above, these two companies have enjoyed the largest quarterly revenue growth at 192% and 24.6% for Block and PayPal respectively.

Going deeper, the fund tracks the Prime Mobile Payments Index and the top ten holdings in its portfolio adding up to 53.29%, up from 48.62% in mid-2019. With its top ten holdings constituting more than 50%, this means that IPAY is subject to more concentration risks, which the fund managers have mitigated to some extent by adding 15 holdings to the 40 the fund included back in 2019.

The volatility impacting IPAY

Still, this has not prevented IPAY to be highly volatile in the last six months as shown in the green chart below with the ETF losing 19.99% of its value. Some analysts tend to associate this fall with the Nasdaq as payment processors that make use of financial technology are also referred to as FinTechs. However, this is not true as the woes of the NASDAQ date back to more recently, or November. The real reasons for IPAY’s fall seem to be related to two of its main holdings: PayPal and Square which both lost over 37% since August, thus dragging IPAY.

https://static.seekingalpha.com/uploads/2022/1/11/49663886-164188972338948.png

Source: Trading View

The market correction impacting these two stocks seems to have been due to their rich valuations, which were 161 (Block) and 61 (PayPal) in August as investors, increasingly aware of the growth-value rationale, have discarded high-valued stocks. Additionally, there are also fears that due to their advanced venture into blockchain technology and cryptocurrencies, these two stocks may be in the sights of regulators who have shown some signs of increasingly wanting to reign in the crypto world.

Lower valuations and timely portfolio adjustment

As per MorningStar, these two stocks are currently at half their August valuations. Furthermore, IPAY’s price-to-earnings ratio is currently at 20.47, which is below the category average value of 25.76.

Additionally, the fund managers who charge an expense ratio of 0.75% for this actively managed ETF have proceeded to a portfolio adjustment from August 25, 2021, to January 8, 2022, which I find to be appropriate. This consisted of increasing the relative percentage of MasterCard, American Express, and Visa shares held as part of total assets, at the expense of Block. These three companies should profit the most from the recovery in international travel as cross-border payments tend to be more lucrative than domestic payments for their payment processing businesses. Furthermore, after having been travel-constrained for the last one and half years and with a lot of savings at their disposal, both tourists and businessmen are likely to spend more.

https://static.seekingalpha.com/uploads/2022/1/11/49663886-16418897231171749.png

Source: etfmg.com

Pursuing on a cautionary note, there may be some headwind in case there are some interruptions in the momentum for digital payment adoption as seen in parts of Europe last year and in the event that consumer spending growth stalls in 2022 as a result of product prices increasing because of inflation. Hence, volatility may persist and investors may have to hold to the ETF for a longer time. Thus, scanning the industry, I came across the Tortoise Digital Payments Infrastructure Fund (TPAY) offering the same payment processing stocks, but with a lower expense ratio of only 0.4%. However, its three-year, one-year, and one-month price performances have been worse than IPAY.

Consequently, with a better track record, IPAY should profit from international air travel recovery in 2022, while at the same time, its fund managers should partially mitigate any uncertainty due to the emergence of a new and more dangerous Covid variant through holdings which already play key roles in digital transformation of the payment industry.

Disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

 

MoneyGram Buys a 4% Stake in Cryptocurrency ATM Operator Coinme

MoneyGram partnered with cryptocurrency ATM operator Coinme in May last year. However, the money transfer firm has taken the partnership to the next level after investing in Coinme.

MoneyGram Invests in Coinme

Money transfer firm MoneyGram announced in a blog post a few hours ago that it has bought a 4% stake in Coinme. MoneyGram invested in Coinme via a recently closed Series A funding round.

Alex Holmes, MoneyGram’s Chairman and CEO, said the company is bullish about the cryptocurrency space. Hence, the reason why it invested in Coinme, a company it believes has enormous potential in the crypto market.

He said, “At MoneyGram, we continue to be bullish on the vast opportunities that exist in the ever-growing world of cryptocurrency and our ability to operate as a compliant bridge to connect digital assets to local fiat currency. Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies.”

MoneyGram is Expanding its Presence in the Crypto Space

MoneyGram is not new to the cryptocurrency market. In May last year, the company partnered with Coinme to allow its United States customers to withdraw their cryptocurrency holdings in cash

MoneyGram maintains that it wants to bridge the gap between Bitcoin and local fiat currencies. Holmes said the money transfer firm has additional initiatives in the pipeline to boost its partnership with Coinme.

Coinme is one of the leading Bitcoin ATM operators in the world. According to its official website, the company has Bitcoin ATMs installed at over 20,000 locations.

MoneyGram is not the only traditional financial institution to expand its presence in the cryptocurrency space in recent months. On December 21, Visa announced the launch of a Global Crypto Advisory to help customers and partners navigate the cryptocurrency space.

Mastercard, another major traditional financial institution, acquired CipherTrace on September 9, 2021. The acquisition allows Mastercard’s cyber security solutions to provide businesses with greater transparency in the cryptocurrency space.

NUGO: Growth Has a New ETF

I came across the Nuveen Growth Opportunities ETF (NYSEARCA:NUGO) while reading a report by ETFGI, an independent research and consulting provider providing insights on the entire global industry of ETFs and ETPs listed globally. Also, out of the top 10 most active funds by net new assets, NUGO, which had been incepted only on September 27, gathered $1.63 billion, representing the largest individual net inflow. It outperformed many well-established names like the SPDR Blackstone/GSO Senior Loan ETF (SRLN) with inflows of only $562.16, coming at second place.

https://static.seekingalpha.com/uploads/2021/12/26/49663886-16405368201872425.png

Source: Table prepared with data from etfgi.com

Interestingly, NUGO also beat the newly incepted ProShares Bitcoin Strategy ETF (BITO) which garnered a lot of media attention lately, and, tellingly, the above figures predate the volatility period engulfing crypto-currencies, signifying that they were benefiting from relatively higher inflows than currently.

The reason for NUGO’s higher inflows

Investigating further as to why NUGO collected as much as 34.5% (1,632/4,731) of the top-ten list of money inflows, the main reason was Nuveen’s parent company, TIAA moving funds from the “$13.7 billion” TIAA-CREF Large-Cap Growth Index fund to NUGO. This strategic re-allocation of assets to NUGO reflects Nuveen’s outlook on areas of opportunity in global equities and is aimed at improving risk-adjusted returns and enhancing retirement outcomes for investors.

Taking a bird’s eye view, EFGI’s report also mentioned that actively managed funds in these two investment vehicles (ETFs and ETPs) brought net inflows of $63.72 billion from the start of the year to November 2021, compared to only $33.06 billion for the same period in 2020. This represents nearly a 100% increase.

Now, these actively managed funds generally carry a higher expense ratio or the fees charged by the fund managers compared to more passively managed funds like for example, the SPDR S&P 500 ETF (SPY). My reason for considering SPY is that it shares some common holdings with NUGO like Microsoft (MSFT), Apple (AAPL), Tesla (TSLA), and Meta Platforms (FB) as shown in the table below with SPY to the right.

https://static.seekingalpha.com/uploads/2021/12/26/49663886-1640536820367116.png

Source: Table prepared from nuveen.com and ssga.com.

Coming to the expense ratio, as an active fund implying more work to rebalance the portfolio, NUGO carries an expense ratio of 0.55% compared to only 0.09% for SPY as a passive ETF. The latter comprises 505 holdings with an AUM of $442.6 billion, a huge amount when compared to NUGO’s total net assets of only $3.3 billion. Also, SPY comes with a 1.22% dividend yield whereas NUGO has not announced any distributions yet.

Looking at NUGO’s performance and risks

Still, for growth-oriented investors who pay relatively less attention to quarterly dividends, two key factors remain performance and risks. For this purpose, I analyzed the three-month performance of SPY and NUGO and found that the latter lived up to “growth” wording in its name by delivering better performance, at 7.76% compared to 7.38% for the SPDR ETF. Now, some may affirm that this 0.38% underperformance is not much given SPY’s much lower fees.

However, as seen by NUGO’s chart in orange below, it delivered intermediary performances of up to 11%-12% on two occasions in November whereas SPY was mostly stuck around the 7% mark. More importantly, this performance has been delivered at a lower degree of volatility with the orange chart not descending below SPY’s green chart during abrupt market fluctuations as was the case in mid-November and the beginning of December.

https://static.seekingalpha.com/uploads/2021/12/26/49663886-16405368204352078.png

Source: tradingview

This is explained by the fact that NUGO charges higher fees and seeks long-term capital appreciation through a concentrated growth portfolio primarily investing in U.S. stocks with market capitalizations of at least $1 billion. The investment team also looks for metrics like attractive earnings growth, strong relative valuation, attractive cash flows, and significant long-term returns.

Furthermore, unlike traditional ETFs NUGO makes use of a “proxy portfolio”, instead of publishing its portfolio holdings on a daily basis. Instead, it discloses the daily holdings of a portfolio transparency substitute (which the fund managers refer to as the “Proxy Portfolio”). This is designed to reflect the economic exposure and risk characteristics of the actual portfolio on any given trading day, allows for the efficient trading of Fund shares, and shields the identity of the Fund’s full daily portfolio holdings.

Conclusion

Looking ahead, the volatility grappling the market is likely to continue in the first quarter of 2022 due to inflationary pressures becoming more evident. To this end, one of NUGO’s constituents, payment processor MasterCard (MA) has taken a hit recently on concerns of rising COVID cases causing a dent in travel and related services. This is due to people tending to swipe their cards more often when changing destinations, thus generating transaction income for MasterCard. Now, the fact that many flights have been canceled on both sides of the Atlantic as Omicron spreads rapidly means less transaction revenue.

Still, I see the exposure to semiconductor names like NVIDIA (NVDA) to be a huge positive for NUGO due to the usage of chips in everything from datacenters, solar panels, electric vehicles, 5G, and crypto mining activities. Along the same lines, that 12% exposure to Microsoft (MSFT), on which most Wall Street analysts are very bullish and forecasting a 10% upside is another positive for the Nuveen ETF which should make it to the $29-30 level by the third quarter of 2022 as inflation fears subside gradually. Finally, I am also bullish because of the massive reallocation of assets being directed towards NUGO from Nuveen’s parent company I evoked earlier.

 

Top Australian Exchange Lists Shiba Inu

Over the last few months, the popularity of meme-themed token Shiba Inu has won support from notable exchanges, and this continues. It has just gained new support from one of the world’s oldest crypto exchanges, CoinJar, which disclosed in a tweet that users of its platform can now trade the asset via its platform.

CoinJar Announces Support for Shiba Inu

The eight-year-old Melbourne-based exchange Shiba Inu alongside six new tokens, including Origin Protocol (OGN), Audius (AUDIO), Cartesi (CTSI), Fetcg.ai (FET), and Quant Network (QNT). This brings the total number of cryptocurrencies available on the longest-running Australian crypto exchange to 48.

The exchange currently boasts of about 400,000 users. It recently earned a position among the top-ranked fintech startups for 2021. Available information even shows that it launched a crypto-enabled Mastercard, supporting 30 different cryptocurrencies.

Other Exchanges That Have Listed Shiba Inu

2021 has been a better year for Shiba Inu. Thanks to its popularity and remarkable price performance, it has won support from notable exchanges. The largest exchange in the United States, Coinbase, listed the meme-inspired tokens. It is also available on Binance, OKex, KuCoin, BitMart, and several other top exchanges. 

Aside from that, Robinhood may also be considering listing the token, as hundreds of thousands of its users and SHIBA fans have signed a petition requesting the trading platform to list the meme token. However, the platform told its community that it needed to consider some things before listing a new token.

Shiba Inu’s incredible price-performance within the last 12 months, at one point, made it one of the top ten largest crypto assets by market cap. Though it has since lost its place in that exalted group, the Doge rival currently ranks among the top 15 crypto assets by market cap.

Interestingly, we reported that the coin holders recently passed the 1 million mark as whales keep stacking it.

As of press time, SHIB is trading for $0.00003659 after gaining over 13% within the last 24 hours.

Manasquan Bank Joins Forces with Bakkt to Offer Crypto Services to Customers

Manasquan Bank is seeking to bring its digital banking division into the Web3 economy by allowing customers to buy, sell, and hold cryptocurrencies through its mobile banking app.

The New Jersey-based financial entity aims to achieve this by participating in Bakkt Holdings’(NYSE: BKKT) early adopter program.  Manasquan, which holds about $2.7B in consolidated assets, plans to boost cryptocurrency adoption with this move, expanding the crypto space for both its existing customers and potential new audiences.

James Vacaro, President and CEO of Manasquan Bank said of the development:

“Our developing partnership with Bakkt to introduce these new offerings and features comes at an exciting time when consumers continue to seek out crypto assets as an option for the acquisition of a portfolio of cryptocurrencies even if it is in very small increments to start, and without having to leave their existing trusted banking environment.”

Bakkt Bringing Crypto to the Mainstream

Based in Alpharetta, Georgia, Bakkt Holdings is a trusted digital asset platform that enables banks to provide their customers with seamless access to a wide variety of cryptocurrencies through a plug-and-play module optimized for buying, selling and holding crypto. Through innovations like the Bakkt App, the company seeks to increase consumer spending and strengthen loyalty programs, using crypto to add value to stakeholders within its ecosystem.

Bakkt has been at the forefront of efforts to demystify crypto and make it more accessible to a wider audience. For instance, in October this year, Bakkt entered into a partnership with banking software vendor, Finastra, to make digital assets more readily available to customers of small and medium-sized financial institutions.

Bakkt also partnered with global payments and technology company, Mastercard, to make crypto available as a payment option for the thousands of banks and millions of merchants across Mastercard’s vast payment network. Bakkt has also partnered with Google to enable users to add Bakkt Visa Debit Cards as a payment option on Google Pay. In the partnership, the digital payment company also chose Google Cloud as its preferred cloud provider.

Concerning the Manasquan Bank deal, Bakkt’s Chief Revenue Officer, Sheela Zemlin, said it is a good opportunity for Manasquan Bank’s clients to adopt crypto as an additional asset option.

Manasquan Bank Has a History of Tech Adoption

Manasquan Bank has served New Jersey residents for close to 150 years, and has always been at the forefront in adopting technological innovations in the financial sector. The bank boasts of a consolidated asset base of over $2.7 billion and operates fifteen branches across three New Jersey counties, namely Monmouth, Middlesex and Ocean County.

The identification and implementation of innovative and leading edge tech-based solutions is a core value of the bank, and the introduction of crypto products is an example of the bank’s open-minded attitude towards new innovations. The early adopter program is slated for launch in the second quarter of 2022.

Why Visa Stock Is Down By 5% Today

Visa Stock Falls As Amazon Will Stop Accepting Company’s Credit Cards That Were Issued In The UK

Shares of Visa found themselves under pressure after a Bloomberg report indicated that Amazon will not accept purchases made with Visa credit cards that were issued in the UK from January 19, 2022.

According to the report, Visa credit cards that were issued in other countries will be accepted by Amazon. High fees were the reason for Amazon’s decision.

Visa stock made an attempt to settle above the $250 level back in July but lost momentum and moved closer to the $200 level. Other payment stocks like PayPal and Mastercard have also found themselves under pressure in recent months as competition in the payments space intensified and investors have started to question whether rich valuations of payments companies were justified.

What’s Next For Visa Stock?

Amazon’s decision dealt a material blow to Visa stock as traders fear that it may be the beginning of a trend. Today’s performance of Mastercard and PayPal stocks shows that the market views Amazon’s move as an industry-wide problem.

Analyst estimates for Visa have been moving lower in recent months. Currently, analysts expect that Visa will report earnings of $7.05 per share in the current fiscal year. In the next fiscal year, Visa is projected to report earnings of $8.41 per share, so the stock is trading at 24 forward P/E.

Visa has already lost about 20% of its market capitalization since July while its valuation moved towards more normal levels, so the stock may soon attract speculative traders and investors who are willing to bet that fears are overblown.

However, traders should closely monitor the developments in the industry. Big retailers are unhappy with high fees, and Amazon’s move may be replicated by others. It remains to be seen whether companies like Visa will have enough bargaining power in such negotiations as competition in the payments space is intensifying.

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

Mastercard Tops Earnings and Revenue Estimates on Spending Boom

Mastercard, a global payments and technology company, reported better-than-expected earnings and revenue in the third quarter, largely driven by strong domestic and cross-border spending which has recently returned to its pre-COVID-19 levels.

The U.S. multinational financial services corporation reported a net income of $2.4 billion and diluted earnings per share of $2.44, beating the market expectations of $2.19 per share. The Purchase, New York-based firm said its net revenue jumped 30% to $5.0 billion, above the Wall Street consensus of $4.95 billion.

Following this Mastercard’s shares rose 3% to $345 in premarket trading on Thursday but was trading 0.26% lower at $334.84 at the time of writing.

It is worth noting that its rivals American Express and Visa also beat estimates on spending growth.

Analyst Comments

Mastercard (MA) reported solid 3Q results ahead of estimates with volume growth (ex-cross border) on a two-year stack having largely returned to normal. Key metrics accelerated sequentially in 3Q and further in October MTD. We expect the stock to be strong at the open,” noted Andrew Charles, equity analyst at Cowen.

“Revenue growth is expected to be in the mid-20s vs. consensus of +26%, or in the low-20son a non-GAAP organic cc basis. Operating expenses are expected to be up in the mid-teens. On a non-GAAP basis, operating expense growth is expected to be in the high-end of high-teens, or the low-end of low double-digits on a non-GAAP organic cc basis. Note, we were modelling 27% revenue growth and 20.5% operating expense growth.”

Mastercard Stock Price Forecast

Fourteen analysts who offered stock ratings for Mastercard in the last three months forecast the average price in 12 months of $437.64 with a high forecast of $482.00 and a low forecast of $385.00.

The average price target represents a 30.53% change from the last price of $335.29. From those 14 analysts, 13 rated “Buy”, one rate “Hold”, while none rate “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $266 with a high of $319 under a bull scenario and $184 under the worst-case scenario. The firm gave an “Overweight” rating on the restaurant chain’s stock.

Mastercard (MA) is one of our preferred stocks in the space. MA’s compounding growth drivers include resilient global consumer spend growth, market share gains, and the secular shift to a card from cash. As the second-largest global card network (behind Visa), MA appears well-positioned to benefit from market share gains in particular regions and consumer spending trends, which have been fairly resilient even through economic cycles,” noted James Faucette, equity analyst at Morgan Stanley.

“These trends should support double-digit revenue growth over the next few years. High incremental margins and opportunities to expand its Vocalink and B2B capabilities should enable the company to drive compounding earnings growth longer term.”

Several other analysts have also updated their stock outlook. Jefferies lowered the target price to $425 from $450. JPMorgan raised the price target to $430 from $427. Mizuho lifted the target price to $450 from $435.

Check out FX Empire’s earnings calendar

Marketmind: The ECB’s Inflation Conundrum

A look at the day ahead from Tommy Wilkes.

Will it or won’t it become the latest central bank to warn that price pressures are more severe — and less transitory — than they appeared a few months ago?

The difficulty for the ECB is that it wants to maintain its ultra-dovish stance to boost the region’s economy, but at the same time, it must face up to inflation expectations that are running at seven-year highs above 2%.

The prospect of slowing economic growth and central bank policy tightening is flattening bond yield curves worldwide — taking longer-dated borrowing costs lower. Europe is no exception, with German 10-year yields on Wednesday seeing their biggest daily drop in eight months.

A busy day for central bank activity elsewhere too. The Bank of Japan delivered another dovish statement, projecting inflation to stay below target for at least two more years. It just reinforces the view it will lag others in dialling back crisis-mode policies.

The Reserve Bank of Australia, meanwhile, skipped a chance to buy a government bond at the heart of its stimulus programme, sending yields soaring above target and raising wagers it will become yet another bank opting for an early rate hike.

Supply chain disruptions continue to dominate the earnings season, with Volkswagen the latest carmaker to report lower-than-expected operating profit, partly because of the chip shortage.

Samsung reported its highest quarterly profit in three years but expect component shortages to affect chip demand.

Stock markets have pulled back, with Germany’s DAX opening 0.2% lower and Wall Street futures only marginally higher.

(For graphic on Euro zone inflation expectations – https://fingfx.thomsonreuters.com/gfx/mkt/xmvjolwdgpr/euro%20zone%20inflation.PNG)

Key developments that should provide more direction to markets on Thursday:

-ECB meeting

-German unemployment/prelim CPI Oct (4.4% Y/Y/ Reuters poll)

-Euro zone consumer inflation expectations Oct

-Norway Central Bank Governor Øystein Olsen speaks

-Emerging markets: Egypt central bank meeting

-U.S. flash GDP Q3 (2.8% Reuters poll)

-U.S. core PCE flash Q3 (4.5% Reuters poll)

-U.S. Initial jobless claims

-U.S. 7-yr note auction

-U.S. earnings: Allegheny, AllianceBernstein, Caterpillar, Comcast, Hershey, Mastercard, Merck, Newmont Mining, Moody’s, Royal Caribbean Cruises, T-Rowe Price, Yum Brands, Amazon, Apple, Gilead Sciences, Starbucks, United States Steel.

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

(Reporting by Tommy Wilkes, editing by Sujata Rao)

MasterCard’s EPS to Grow 36% to $2.19 in Q3, Revenue to Jump Nearly 30%

MasterCard Inc, a global payments and technology company, is expected to report its third-quarter earnings of $2.19 per share, which represents year-over-year growth of over 36% from $1.60 per share seen in the same period a year ago.

The U.S. multinational financial services corporation would post revenue growth of about 30% to around $4.95 billion. The company has exceeded consensus earnings expectations three times in the last four quarters.

The company will report earnings on Thursday, October 28 before the market open. The better-than-expected third-quarter earnings results could help the stock recoup recent losses. MasterCard’s shares rose just 1% so far this year. It closed 0.61% higher at $360.86 on Monday.

Analyst Comments

MasterCard (MA) is one of our preferred stocks in the space. MA’s compounding growth drivers include resilient global consumer spend growth, market share gains, and the secular shift to card from cash. As the second-largest global card network (behind Visa), MA appears well-positioned to benefit from market share gains in particular regions and consumer spending trends, which have been fairly resilient even through economic cycles,” noted James Faucette, equity analyst at Morgan Stanley.

“These trends should support double-digit revenue growth over the next few years. High incremental margins and opportunities to expand its Vocalink and B2B capabilities should enable the company to drive compounding earnings growth longer term,”

MasterCard Stock Price Forecast

Fourteen analysts who offered stock ratings for MasterCard in the last three months forecast the average price in 12 months of $437.64 with a high forecast of $482.00 and a low forecast of $385.00.

The average price target represents a 21.28% change from the last price of $360.86. From those 14 analysts, 13 rated “Buy”, one rate “Hold”, while none rate “Sell”, according to Tipranks.

“Reasons To Buy: Mastercard’s strategic acquisitions, alliances and technology upgrades, along with product-diversification and geographic-expansion initiatives augur long-term growth,” noted analysts at ZACKS Research.

“Reasons To Sell: Higher expenses, high rebates and incentives might drag the company’s margins.”

Morgan Stanley gave the base target price of $451 with a high of $526 under a bull scenario and $278 under the worst-case scenario. The firm gave an “Overweight” rating on the payments & technology company’s stock.

Several other analysts have also updated their stock outlook. Jefferies lowered the target price to $425 from $450. JPMorgan raised the price target to $430 from $427. Mizuho lifted the target price to $450 from $435.

Check out FX Empire’s earnings calendar

Mass Adoption by Mastercard Will propel BTC to Yet Another ATH

The Intercontinental Exchange’s own Bakkt will provide the custodial service or the backend for this new feature. Bakkt (BKKT) officially became a publicly listed company on the NYSE last week and was flat at the end of its first trading week. Today, however, the company surged upwards by 234.43% on the news of this partnership.

According to CNBC, Sherri Haymond, executive vice president of MC’s digital partnerships, said in an interview, “Our partners, be they banks, fintechs or merchants, can offer their customers the ability to buy, sell, and hold cryptocurrency through an integration with the Bakkt platform.”

According to Bakkt CEO Gavin Michael, the agreement implies that businesses and restaurants may give bitcoin incentives instead of standard points. Existing points may be turned into cryptocurrency at rates determined by the participating firms, allowing users to earn a return.

“We’re lowering the barriers to entry, allowing people to take something like your rewards points and trade them into crypto. It’s an easy way to get going because you’re not using cash, you’re putting something that’s an idle asset sitting on your balance sheet, and we’re allowing you to put in to work.”

After hitting a new ATH last week, BTC has come off of the newly achieved close above $66,000 but found support at $60,000 and today is trading up 2.72%, helped by the mass adoption development with the world’s second-largest credit card company.

A rule of thumb for traders is that a stock or commodity tends to retrace or correct after hitting a new ATH, but this rule does not cross over to the world’s number one cryptocurrency. A model that tracks and forecasts the stock-to-flow ratio for Bitcoin going back to 2011 shows the opposite is true for Bitcoin.

10 25 chart 1

Our studies show similar findings. Back in 2017, when it broke above the previous ATH at around $1,100, it went on to make three more significant new highs before a correction entered into the market. On Dec.16th, according to Bitstamp, Bitcoin achieved a new record high and during its ascent to $65,000 in April of this year, made another four significant new highs before correcting. This current rally has just achieved its first significant new price high, and I am willing to bet it will make a few more before correcting. History seems to agree with that assumption.

10 25 chart 2

 

Monstrous Earnings Ahead: Facebook, Microsoft, Alphabet, Apple and Amazon in Focus

Earnings Calendar For The Week Of October 25

Monday (October 25)

IN THE SPOTLIGHT: FACEBOOK

The world’s largest online social network Facebook is expected to report its third-quarter earnings of $3.19 per share, which represents year-over-year growth of over 17% from $2.71 per share seen in the same period a year ago.

The Menlo Park, California-based social media conglomerate would post revenue growth of over 35% to around $29.3 billion. It has beaten consensus earnings per share estimates in all of the last four quarters.

“We kept our 3Q21 adv forecast in check after our 3Q21 Digital ad expert call on 10/8, which suggested strong but decelerating ad growth at Core FB and IG with growth led mainly by pricing. For 3Q21, we are +0.7% & (1.0%) vs. consensus revenue & EBITDA; we are 1.1% and 1.6% above 4Q21 cons. rev. & EBITDA. Investors will focus on iOS 14.5 colour and 4Q21 rev. guide at the print,” noted John Blackledge, equity analyst at Cowen.

“We forecast 16% annual revenue growth’21-’26 driven by 16% annual advertising revenue and offset by 6% annual Other revenue. We view Advertising revenue as driven mostly by the contribution of mobile, video and Instagram, while we forecast Desktop remaining flattish. We expect EBITDA margins to remain roughly in line with current levels.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 25

Ticker Company EPS Forecast
HSBA HSBC Holdings £0.10
CBU Community Bank System $0.80
BOH Bank of Hawaii $1.33
DORM Dorman Products $1.22
FBP First Bancorp FBP $0.28
IBA Industrias Bachoco Sab De Cv $0.88
HSBC HSBC $0.69
KMB Kimberly Clark $1.65
OTIS Otis Worldwide Corp $0.73
LII Lennox International $3.65
PCH Potlatch $0.92
CALX Calix $0.29
BXS BancorpSouth $0.65
CATY Cathay General Bancorp $0.91
IBTX Independent Bank $1.30
AIN Albany International $0.70
BDN Brandywine Realty $0.02
OI Owens-Illinois $0.52
ARI Apollo Commercial Real Est Finance $0.36
HTLF Heartland Financial USA $1.23
FB Facebook $3.19
ARE Alexandria Real Estate Equities $0.54
SUI Sun Communities $0.97
BRO Brown & Brown $0.52
CCK Crown $1.96
PKG Packaging Of America $2.35
UHS Universal Health Services $2.75
AGNC American Capital Agency $0.65
ACC American Campus Communities -$0.10
RNR Renaissancere -$7.85
TNET TriNet $0.79
ASR Grupo Aeroportuario Del Sureste $44.91
CR Crane $1.36
AMKR Amkor Technology $0.44
SSD Simpson Manufacturing $1.79
AXTA Axalta Coating Systems $0.34
TMUS T-Mobile Us $0.48
CDNS Cadence Design Systems $0.75
HWM Howmet Aerospace Inc $0.26
NWE Northwestern $0.58
MSNFY Minera Frisco ADR $0.00
TLK Telekomunikasi Indns Tbk Prshn Pp Pt $0.45
GT Goodyear Tire & Rubber $0.25
RCL Royal Caribbean Cruises -$4.13

Tuesday (October 26)

IN THE SPOTLIGHT: MICROSOFT, ALPHABET

MICROSOFT: The Redmond, Washington-based global technology giant would report its fiscal first-quarter earnings of $2.07 per share, which represents year-over-year growth of about 14% from $1.82 per share seen in the same period a year ago. The world’s largest software maker would post revenue growth of over 18% to around $44 billion. It is worth noting that the company has beaten earnings per share estimates at all times in the last two years.

“Channel work and CIO survey point to building momentum across Cloud and Hybrid solutions, which should power a strong Q1 top-line. Revenue outperformance may prove operating margins more durable than feared, driving EPS upside. Our model suggests durable high-teens EPS growth,” noted Keith Weiss, equity analyst at Morgan Stanley.

ALPHABET: The parent of Google and the world’s largest search engine that dominates internet search activity globally, Alphabet, is expected to report its third-quarter earnings of $23.75 per share, which represents year-over-year growth of about 45% from $16.4 per share seen in the same period a year ago.

The Mountain View, California-based internet giant would post revenue growth of more than 35% to around $51.4 billion. In the last two years, the company has beaten earnings per share estimates most of the time with a surprise of over 25%.

“We remain bullish on Search strength amid an ongoing ad market recovery and following our Digital ad expert check-call on 10/7, which suggested strong Search spend (despite tougher comps) as CPCs continue to drive growth. Our 3Q21 net rev. (+39% y/y), EBITDA, & EPS are all above consensus. We also expect robust Holiday spending, despite inventory issues. Maintain Outperform & $3,300 Price Target,” noted John Blackledge, equity analyst at Cowen.

“We currently forecast 13% and 14% annual gross and net revenue growth respectively’21-’26 and EBITDA growth of ~14% over the time period.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 26

Ticker Company EPS Forecast
LMT Lockheed Martin $2.29
CAJ Canon $0.42
UPS United Parcel Service $2.55
CNC Centene $1.24
ST Sensata Technologies $0.83
HAS Hasbro $1.70
TRU TransUnion $0.93
IVZ Invesco $0.73
DAN Dana $0.49
SPGI S&P Global Inc $3.16
CIT CIT $1.14
PCAR PACCAR $1.21
FELE Franklin Electric $0.92
RTX Raytheon Technologies Corp $1.08
ENTG Entegris $0.87
SSTK Shutterstock $0.58
SFNC Simmons First National $0.57
GPK Graphic Packaging $0.32
SHW Sherwin-Williams $2.13
ARCC Ares Capital $0.44
HUBB Hubbell $2.37
PNR Pentair Ordinary Share $0.84
ADM Archer-Daniels Midland $0.89
WM Waste Management $1.36
ECL Ecolab $1.30
PHM PulteGroup $1.80
AWI Armstrong World Industries $1.29
ABG Asbury Automotive $6.30
GE General Electric $0.43
LOGI Logitech Internationalusa $1.05
CB Chubb $2.25
CHRW C.H. Robinson Worldwide $1.42
NOV National Oilwell Varco -$0.08
FIBK First Interstate BancSystem $0.74
EGP EastGroup Properties $0.69
HPP Hudson Pacific Properties -$0.01
FFIV F5 Networks $2.75
WSBC WesBanco $0.77
MANH Manhattan Associates $0.54
NAVI Navient $0.82
JNPR Juniper Networks $0.46
NCR NCR $0.64
WIRE Encore Wire $2.92
VIST Vista Oil Gas $0.19
AMP Ameriprise Financial $5.48
HIW Highwoods Properties $0.34
OMAB Grupo Aeroportuario Del Centro Nort $15.88
UMBF UMB Financial $1.80
DLR Digital Realty $0.24
CSGP CoStar $0.23
TWTR Twitter $0.18
ESS Essex Property $1.01
EQR Equity Residential $0.22
MASI Masimo $0.91
MSFT Microsoft $2.07
LFUS Littelfuse $3.15
V Visa $1.55
MTDR Matador Resources $0.99
GOOGL Alphabet $23.75
AAT American Assets $0.18
BXP Boston Properties $0.62
BYD Boyd Gaming $1.24
GOOG Alphabet $23.84
FBHS Fortune Brands Home Security $1.38
TRMK Trustmark $0.47
AMD Advanced Micro Devices $0.66
RRC Range Resources $0.54
UDR UDR $0.04
ROIC Retail Opportunity Investments $0.06
TXN Texas Instruments $2.05
COF Capital One Financial $5.28
PFG Principal Financial $1.59
APAM Artisan Partners Asset Management $1.32
TER Teradyne $1.43
FQVLF First Quantum Minera $0.34
PII Polaris Industries $1.96
CVLT Commvault Systems $0.57
IEX IDEX $1.59
FRME First Merchants $0.91
ENPH Enphase Energy $0.49
LLY Eli Lilly $1.96
HNP Huaneng Power International $0.69
UBS UBS Group $0.43
ORAN Orange $0.68
MSCI Msci $2.43
MMM 3M $2.20
NVS Novartis $1.64
JBLU JetBlue Airways -$0.18
GLW Corning $0.58
ACH Aluminum Of China $0.51
PPERY PT Bank Mandiri Persero TBK $0.17
XRX Xerox $0.44
DSV DSV kr13.73
BZLFY Bunzl plc $0.15
BNZL Bunzl £0.31
HTA Healthcare Of America $0.09
WTB Whitbread -£184.33
EDU New Oriental Education Tech -$0.05
AJRD Aerojet Rocketdyne $0.48
FBC Flagstar Bancorp $1.72

Wednesday (October 27)

Ticker Company EPS Forecast
SF Stifel Financial $1.48
FIX Comfort Systems USA $0.99
ALKS ALKERMES $0.06
BCO Brinks $1.02
FLS Flowserve $0.40
ALGT Allegiant Travel $0.68
PAG Penske Automotive $3.54
UMC United Microelectronics $0.20
SAN Banco Santander $0.14
DB Deutsche Bank $0.03
RJF Raymond James Financial $1.71
FORM FormFactor $0.36
APH Amphenol $0.63
GD General Dynamics $2.98
SNBR Scs Group Plc $1.43
URI United Rentals $6.83
HES Hess $0.27
BA Boeing -$0.15
EW Edwards Lifesciences $0.53
NSC Norfolk Southern $2.91
GSK Glaxosmithkline $0.78
BMRN BioMarin Pharmaceutical -$0.24
ROL Rollins $0.20
SCI Service International $0.45
EVR Evercore Partners $2.97
AVY Avery Dennison $2.04
BMY Bristol-Myers Squibb $1.93
MCD McDonalds $2.46
TEVA Teva Pharmaceutical Industries $0.65
MAS Masco $0.89
CME CME $1.56
NYCB New York Community Bancorp $0.32
SLAB Silicon Laboratories $0.15
GM General Motors $0.86
ROCK Gibraltar Industries $1.17
GGB Gerdau $0.37
BSBR Banco Santander Brasil $0.19
DTE DTE Energy $1.83
WAB Westinghouse Air Brake Technologies $1.12
TEL TE Connectivity $1.64
FISV Fiserv $1.45
TDY Teledyne Technologies $2.66
PB Prosperity Bancshares $1.37
BSX Boston Scientific $0.40
ODFL Old Dominion Freight Line $2.36
VRT Veritas Pharma $0.19
TMO Thermo Fisher Scientific $4.68
KO Coca-Cola $0.58
HOG Harley Davidson $0.78
KHC Kraft Heinz $0.58
HLT Hilton Worldwide $0.78
R Ryder System $2.09
ADP ADP $1.49
SPOT Spotify -$0.22
DT Dynatrace Holdings $0.16
OC Owens Corning $2.47
SLGN Silgan $1.04
BG Bunge $1.42
VRTS Virtus Investment Partners $9.61
GRMN Garmin $1.26
TMHC Taylor Morrison Home $1.21
SIX Swiss Exchange $1.42
AIT Applied Industrial Technologies $1.25
IP International Paper $1.41
BXMT Blackstone Mortgage $0.61
FCNCA First Citizens Bancshares $7.86
EQT EQT -$0.05
WCN Waste Connections $0.85
RE Everest Re $0.03
CHX ChampionX Corp $0.18
CNMD CONMED $0.75
PPC Pilgrim’s Pride $0.76
ALSN Allison Transmission $0.90
AXS Axis Capital -$0.49
MXL MaxLinear $0.67
IRBT Irobot $0.74
NLY Annaly Capital Management $0.27
EVTC Evertec $0.62
CINF Cincinnati Financial $0.93
CHDN Churchill Downs $1.38
MUSA Murphy USA $3.25
THG Hanover $1.25
PDM Piedmont Office Realty $0.06
PEGA Pegasystems -$0.27
CCS Century Communities $3.14
DRE Duke Realty $0.21
NOW ServiceNow $1.39
KLAC KLA-Tencor $4.52
ALGN Align Technology $2.59
AFL Aflac $1.31
KOF Coca Cola Femsa Sab De Cv $15.93
AR Antero Resources $0.31
CONE CyrusOne $0.01
CACI Caci International $4.13
FWRD Forward Air $1.07
EXR Extra Space Storage $1.24
KRC Kilroy Realty $0.34
ACGL Arch Capital $0.41
SIMO Silicon Motion Technology $1.62
CTSH Cognizant Technology Solutions $1.05
CNO CNO Financial Group $0.61
FLEX Flextronics International $0.40
MKSI MKS Instruments $2.77
NOVA Nova Mentis Life Science Corp -$0.27
MTH Meritage Homes $4.67
TROX Tronox $0.64
SIGI Selective $1.07
MC Moelis & Company $1.26
AZPN Aspen Technology $0.67
EHC Encompass Health Corp $1.06
MOH Molina Healthcare $2.80
AVB AvalonBay Communities $0.88
TYL Tyler Technologies $1.77
AGI Alamos Gold $0.11
AM Antero Midstream Partners $0.18
PLXS Plexus $1.26
MAA Mid-America Apartment Communities $0.64
F Ford Motor $0.26
EBAY eBay $0.89
ASGN On Assignment $1.46
XLNX Xilinx $0.86
ORLY O’Reilly Automotive $7.16
AEM Agnico Eagle Mines USA $0.62
VIV Telefonica Brasil $0.14
ISBC Investors Bancorp $0.31
SHI SinOPEC Shanghai Petrochemical $1.03

Thursday (October 28)

IN THE SPOTLIGHT: APPLE, AMAZON

APPLE: The consumer electronics giant would post its fiscal fourth-quarter earnings of $1.23 per share, which represents year-over-year growth of over 68% from $0.73 per share seen in the same quarter a year ago.

The iPhone manufacturer would post revenue of $84.4 billion. It is worth noting that the company has beaten earnings in all last eight quarters. It is worth noting that the company has beaten earnings per share estimates at all times in the last two years.

“Our F4Q21 and FY22 ests move higher (above consensus) on the back of positive quarter-end checks, but we don’t see earnings as a meaningful catalyst given unresolved key debates including FY22 iPhone growth and impact of App Store changes,” noted Katy Huberty, equity analyst at Morgan Stanley.

AMAZON: The eCommerce leader for physical and digital merchandise is expected to report its third-quarter earnings of $8.91 per share, which represents a year-over-year decline of about 28% from $12.37 per share seen in the same period a year ago.

The Seattle, Washington-based multinational technology giant would post revenue growth of more than 16% to around $112 billion. The company has beaten earnings per share estimates in most of the quarters in the last two years.

“The market’s unwillingness to credit what Deliveroo is doing has been brought into sharp focus with the 3Q21 trading update. The outperformance on growth and guidance alone is worth credit but doing so on unchanged unit economics is a sector-wide aspiration – the doubling of Plus subscribers in <1 month of the Amazon Prime partnership is surely a big driver here,” noted Giles Thorne, equity analyst at Jefferies.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 28

Ticker Company EPS Forecast
ORI Old Republic International $0.61
MDP Meredith $0.68
MPW Medical Properties $0.29
KMPR Kemper $0.06
LOPE Grand Canyon Education $1.14
ASX Advanced Semiconductor Engineering $0.21
X United States Steel $4.70
FE FirstEnergy $0.79
KBR KBR $0.58
BUD Anheuser-Busch $0.62
RMD ResMed $1.37
LYG Lloyds Banking $0.08
STM Stmicroelectronics $0.52
KPELY Keppel Corporation $0.10
THRM Gentherm $0.72
LIN Linde PLC $2.67
WNS Wns Holdings $0.76
CAT Caterpillar $2.20
CNX Consol Energy $0.32
RS Reliance Steel & Aluminum $6.00
CBRE CBRE Group Inc $1.16
KEX Kirby $0.27
SAH Sonic Automotive $1.93
AMT American Tower $1.19
SIRI Sirius XM $0.07
TROW T. Rowe Price $3.31
VC Visteon $0.23
TW Towers Watson $0.39
TAP Molson Coors Brewing $1.54
HBAN Huntington Bancshares $0.32
HSY Hershey $2.00
AGCO AGCO $1.88
ITW Illinois Tool Works $2.00
SWI Solarwinds $0.27
CFR Cullen/Frost Bankers $1.52
GOL Gol Linhas Aereas Inteligentes -$1.07
CWT California Water Service $0.86
WLTW Willis $1.59
FCN FTI Consulting $1.48
VLY Valley National Bancorp $0.30
NOC Northrop Grumman $5.99
AVNT Avient Corp $0.68
MDC MDC $2.09
SWK Stanley Black & Decker $2.50
XEL Xcel Energy $1.18
MCO Moody’s $2.52
BC Brunswick $1.96
DQ Daqo New Energy $2.20
SAIA Saia $2.35
ALNY Alnylam Pharmaceuticals -$1.54
KDP Keurig Dr Pepper $0.44
TPX Tempur Sealy International $0.84
EXP Eagle Materials $2.71
CHKP Check Point Software Technologies $1.60
COR CoreSite Realty $0.47
NEM Newmont Mining $0.79
AEP American Electric Power $1.46
LH Laboratory Of America $4.92
COLB Columbia Banking System $0.71
AOS A.O. Smith $0.68
WST West Pharmaceutical Services $1.80
RGEN Repligen $0.64
OSTK Overstock $0.43
WEX WEX $2.28
IDA IdaCorp $1.98
LECO Lincoln Electric $1.53
GPI Group 1 Automotive $9.20
SKX Skechers USA $0.72
RSG Republic Services $1.05
ATR AptarGroup $0.94
LPLA LPL Financial $1.76
AUY Yamana Gold USA $0.08
FHI Federated Hermes Inc $0.72
AJG Arthur J. Gallagher $1.21
CUZ Cousins Properties $0.20
SPSC SPS Commerce $0.42
WRE Washington Real Estate Investment -$0.06
MSTR Microstrategy $0.57
SKYW SkyWest $0.97
INT World Fuel Services $0.34
PSB PS Business Parks $0.87
CHE Chemed $4.52
BIO Bio-Rad Laboratories $2.44
SSNC SS&C Technologies $1.20
POWI Power Integrations $0.78
DXCM Dexcom $0.64
BSMX Santander Mexico Fincl Gp Sab Decv $0.17
VALE Vale $1.26
SBCF Seacoast Banking Of Florida $0.49
HUBG HUB $1.10
STAG STAG Industrial $0.17
ZEN Zendesk $0.17
ACHC Acadia Healthcare $0.72
TEX Terex $0.74
WDC Western Digital $2.45
COLM Columbia Sportswear $1.30
PEB Pebblebrook Hotel -$0.39
GILD Gilead Sciences $1.74
TEAM Atlassian Corporation PLC $0.40
MMSI Merit Medical Systems $0.44
WERN Werner $0.96
CWST Casella Waste Systems $0.27
SM SM Energy $0.11
AVT Avnet $1.08
TXRH Texas Roadhouse $0.82
FMX Fomento Economico Mexicano Sab $17.43
SBUX Starbucks $1.00
MPWR Monolithic Power Systems $2.00
GLPI Gaming And Leisure Properties $0.60
CPT Camden Property $0.47
OFC Orate Office Properties $0.25
SGEN Seattle Genetics -$0.57
SYK Stryker $2.29
ERIE Erie Indemnity $1.73
VRSN Verisign $1.40
HIG Hartford Financial Services $0.90
AAPL Apple $1.23
EMN Eastman Chemical $2.46
LFC China Life $0.53
YMZBY Yamazaki Baking ADR $0.35
NLSN Nielsen $0.36
CG Carlyle $0.99
CMCSA Comcast $0.75
OSK Oshkosh $1.04
HOCPY Hoya Corp $0.98
YUM Yum Brands $1.09
BAX Baxter International $0.94
ABEV Ambev $0.03
SNY Sanofi $1.15
HTH Hilltop $0.82
MA Mastercard $2.18
KMTUY Komatsu $0.38
FTV Fortive Corp $0.65
CX Cemex Sab De Cv $0.17
PRFT Perficient $0.85
CARR Carrier Global Corp $0.66
LKQ LKQ $0.86
PBR Petroleo Brasileiro Petrobras $0.57
MO Altria $1.26
MRK Merck & Co $1.54
BVN Compania De Minas Buenaventura $0.25
NATI National Instruments $0.18
TFX Teleflex $3.03
ERJ Embraer -$0.13
INSM Insmed -$0.93
APELY Alps Electric $0.68
MHK Mohawk Industries $3.80
TXT Textron $0.78
AMZN Amazon $8.91
RLGY Realogy $1.16
CMS CMS Energy Corporation $0.55
ABMD Abiomed $0.98
EME EMCOR $1.77
ICE Intercontinental Exchange $1.21
ATI Allegheny Technologies -$0.03
EXPO Exponent $0.39
ABCB Ameris Bancorp $1.18
RNST Renasant $0.66
ADS Alliance Data Systems $3.48
SU Suncor Energy USA $0.59
DECK Deckers Outdoor $3.92
PTCT PTC Therapeutics -$1.75
MD Mednax $0.41
SJW SJW $0.74
DVA DaVita Healthcare Partners $2.26

Friday (October 29)

Ticker Company EPS Forecast
ABR Arbor Realty $0.43
PEXNY PTT Exploration & Production $0.16
SHLX Shell Midstream Partners $0.33
SNP China Petroleum Chemical $2.32
PSXP Phillips 66 Partners $0.95
RDY Drreddys Laboratories $0.56
NMR Nomura $0.19
PNM PNM Resources $1.18
BAH Booz Allen Hamilton $1.08
LAZ Lazard $0.94
TOTDY Toto $0.32
BBVA Banco Bilbaoizcaya Argentaria $0.17
CHD Church Dwight $0.71
CVX Chevron $2.21
ALNPY ANA Holdings ADR -$0.11
LHX L3Harris Technologies Inc $3.18
E ENI $0.73
PSX Phillips 66 $1.89
ASEKY Aisin Seiki Co $0.75
PTR Petrochina $1.86
BNPQY BNP Paribas ADR $1.03
AON AON $1.70
HUN Huntsman $0.94
CL Colgate-Palmolive $0.80
CHTR Charter Communications $5.69
GWW Grainger $5.30
BSAC Banco Santander Chile $0.49
SJR Shaw Communications USA $0.26
ABBV AbbVie $3.22
WY Weyerhaeuser $0.57
BCPC Balchem $0.83
LYB LyondellBasell Industries $5.69
POR Portland General Electric $0.66
CCJ Cameco USA -$0.02
NWL Newell Brands Inc $0.50
CERN Cerner $0.82
WPC W. P. Carey $0.55
BACHY Bank China ADR $0.67
CICHY China Construction Bank Corp $0.87
CEA China Eastern Airlines $0.66

 

American Express Could Hit 140 in the Fourth Quarter

Dow component American Express Co. (AXP) is trading marginally higher in Thursday’s pre-market after Bank of America Securities upgraded the stock from ‘Underperform’ to ‘Neutral’, posting a $169 price target.  The ratings change matches recent actions by Seaport Global Securities and Credit Suisse Group, highlighting analyst caution after the financial technology provider gained nearly 270% off the March 2020 low.

Delta Variant Stalls Business Travel Plans

The stock is highly levered to business and travel spending that’s been impacted by the COVID-19 pandemic. The growth outlook looked bright at the end of the first quarter but the Delta variant has forced corporations to delay plans to reinstitute airline travel, having a negative impact on airline, hotel, conference, and food transactions. That headwind has also impacted rivals Visa Inc. (V) and Mastercard Inc. (MA), with the trio pulling back from summer peaks.

American Express released solid August card metrics on Wednesday, reporting a U.S. Consumer Card Member net loan write-off rate of 0.6% vs. 0.7% in the prior month, or a -10 bps change. Consumer loans 30 days or more past due stood at 0.6% vs 0.6% in the prior month, marking no change, while the U.S. Small Business Card member loan net write-off rate of 0.5% matched 0.5% in July. Loans that were 30 days or more past due rose slightly to 0.5%, compared to 0.4%.

Wall Street and Technical Outlook

Wall Street consensus now stands at an ‘Overweight’ rating based upon 12 ‘Buy’, 1 ‘Overweight’, 13 ‘Hold’, 2 ‘Underweight’, and 1 ‘Sell’ recommendation. Price targets currently range from a low of $140 to a Street-high $227 while the stock is set to open Thursday’s session about $23 below the median $185 target. This low placement should favor a strong fourth quarter bounce but technical factors are telling a more bearish tale.

American Express topped out at 138 in January 2020 and sold off to a four-year low during the pandemic decline. The subsequent uptick reached the prior peak in February 2021, triggering an immediate breakout that posted an all-time high at 179.67 in July. A steady downtick since that time has flipped weekly and monthly Stochastics into sell cycles, predicting continued weakness that could reach 200-day moving average support near 150 in coming weeks.

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

Disclosure: the author held Visa in a family account at the time of publication. 

Selling Mastercard Too Early Cost Me $700,000

I’ll tell you with a personal story:

I found the band Phish in 1992. For me, they had it all: soaring guitar solos, classical-like passages, acoustic piano, crushing drums, thumping bass, and all sprinkled with jazz.

I saw them in May of 1993. They sold out 2,800 seats.

I expected perfection. But only caring about music, the hippy environment didn’t appeal, and some songs were too country. Silly stage antics dumbed-down monster musicianship.

My love grew conflicted.

Then I didn’t like their new albums. They were boring compared to live greatness. Growing impatient, I dropped being a “Phan”, returning every few years, only to drop them again.

During that, venues became huge. I saw a sold-out 2013 show at MSG with capacity of 20,789: 10x larger than my first show. They even played venues of 80,000+ people. They also grew a monster business.

Privately held details are murky, but get this: After 2019, Phish earned more at MSG than most Knicks players ever have: $50+ million. Career ticket sales exceed 11.4 million and $500 million. They have a streaming service selling subscriptions, content, and merchandise. I believe they eclipsed (or soon will) $1 billion of total revenue.

During lockdown, I’d take long bike rides, again rediscovering Phish as the perfect soundtrack. On July 31st, my son and I saw them in Atlanta. It was a great show, and the scene was crunchy as ever.

Love or hate it, Phish is an outlier. I wish I had stuck with them from the outset, warts and all. My fickleness made me miss their peak years.

It sounds like regretting stocks I sold too early: I’m picky, but too picky can be costly.

My Costly Trade With Mastercard

In October 2007, I took a quick 150% profit in Mastercard (MA). Seeing big money buying, I bought November $150 calls for $11.50.

Below is a chart of my favorite indicator for stocks: Big Money activity. Green bars show outsized trading activity for Mastercard (likely buying). Red is selling. I’ve circled the buy signal that had me near-term bullish on the stock back in 2007:

Source: ww.MAPsignals.com, FactSet

It was a good bet… Mastercard reported earnings on Halloween, shattering expectations; growing sales, earnings, their footprint, and guiding higher. MA gapped higher blowing through the $150 strike price of my calls, closing at $178.10, +25.5% higher than when I bought the options 6 days earlier. My calls surged more than +150% in a week! I couldn’t resist taking the profit… I pocketed my winnings and walked away. I got what I wanted.

Here’s the rub: Mastercard went on to become one of the all-time great outlier stocks. Since I exited that trade the stock is up +2300%.

Nobody goes broke taking a profit, but you don’t get rich leaving 2300% on the table either. In other terms: If I bought 2 calls, I would have made about $3,000 – awesome for a one-week trade.

But had I held 2 calls exercising my right to buy 200 shares of MA at $150, I would have spent $30,000 on the stock. It split 10-for-1 in January of 2014. 200 shares would have become 2,000 shares. Had I held it until today, it would be worth over $724,000.

I literally left a $721,000 profit on the table.

Here’s what I learned: a longer-term investment perspective makes it easier to ignore fluctuations along the way. It brings calm and reduces stress when stocks invariably face pressure.

Here’s the icing on the cake: when COVI-19 rocked markets last year, Mastercard dropped from $347 to $210. A disastrous fall of -40%.

But since the March 2020 low, Mastercard rallied to new highs: a 70+% gain!

Here is the MAPsignals summary of its outlier status. Those blue bars are the times Mastercard stock ranked well on fundamentals and saw Big Money buying in the shares.

Typically, the more the better. Here’s the long-term climb for the stock:

Life, like investing, isn’t perfect but chasing it can cause premature exits, missing the big wins. Phish ticked most boxes but wasn’t perfect. The Mastercard trade seemed perfect for the short-term but I missed the monster move.

The moral of the story is: when life gives you an outlier, have the long view.

Disclosure: the author holds no position in MA at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer

https://mapsignals.com/contact/

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

A Profit Warning Knocks PayPal Down Like a Rock

PayPal Holdings Inc. (PYPL), one of 2020’s hottest stocks, is trading lower by more than 9% in Thursday’s pre-market after issuing downside profit guidance for the third quarter and full year. The digital payments juggernaut beat Q2 earnings-per share (EPS) estimates by just $0.03, posting a profit of $1.16, while revenue rose 18.6% year-over-year to $6.24 billion, just missing $6.27 billion consensus. Total payment volume during the quarter grew 40%, or 36% on a currency neutral basis.

Pandemic Hangover

The company boasts a 55.7 price-to-earnings ratio (P/E), higher than American Express Co. (AXP) but on par with Visa Inc. (V) and MasterCard Inc. (MA). The weak outlook exposes vulnerability to a pandemic ‘hangover’ that many 2020 beneficiaries have reported in their quarterly results. Simply stated, the rapid transition into digital payments, streaming services, and at-home food delivery yielded a one-time cash influx that’s now reverting to historical performance.

The selloff comes just three business days before PayPal raises rates for many merchant accounts. Originally announced in June, the news triggered a strong rally into July but Q3 and full year profit warnings suggest the company miscalculated and now expects to lose customers. It may also have underestimated the growing number of choices in the digital payment space, heralding an era in which it will need to compete more forcefully for market share.

Wall Street and Technical Outlook

Wall Street has been wildly bullish on PayPal for months, holding like glue to a ‘Buy’ rating now based upon 35 ‘Buy’, 5 ‘Overweight’, 6 ‘Hold’, and 1 ‘Sell’ recommendation. Price targets currently range from a low of $250 to a Street-high $375 while the stock is set to open Thursday’s session more than $50 below the median $330 target. A quick uptick into the median price seems unlikely, given weak guidance, because it would require breaking out to a new high.

PayPal posted a phenomenal 219% return in 2020 and continued to book upside into the February 2021 high at 309.14. A decline into March found support in the 220s while the bounce into July mounted the first quarter peak by less than one point ahead of this morning’s selloff. The reversal reinforces resistance above 300 while setting up a test of 50-day moving average support at 285. A breakdown is possible given downside momentum, exposing an unpleasant trip to the March low.

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

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Mastercard Profit Beats Estimates on Overall Spending Boost

The company’s shares rose about 2% in premarket trading as the upbeat results rounded out a positive quarter from payment processors including Visa Inc and American Express Co.

Mastercard’s cross-border volumes, which track spending on its cards beyond the country of issue, rose 58% on a local currency basis, driven by a pickup in international travel.

Volumes had plunged 45% in the same period a year ago.

“International travel is still in the early stages of recovery and represents additional upside potential,” Chief Executive Officer Michael Miebach said in a statement.

Cross-border volumes were the biggest headwind for Mastercard last quarter as COVID-19 travel curbs and border restrictions dampened international spending. The metric tumbled 17% at Mastercard in the previous quarter compared with an 11% fall at Visa.

Consumer spending saw a spike during the quarter due to massive government stimulus packages, sending Mastercard’s gross dollar volumes, or the dollar value of the transactions processed, up 33% on a local currency basis to $1.9 trillion.

Net income, excluding exceptional items, rose to $1.9 billion, or $1.95 per share, from $1.4 billion, or $1.36 per share a year earlier.

Analysts on average had expected a profit of $1.75 per share, according to Refinitiv IBES data.

(Reporting by Sohini Podder in Bengaluru; Editing by Saumyadeb Chakrabarty)

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

Mastercard Drops Branding From Copa America Amid Covid Concerns

By Carolina Mandl

In a statement to Reuters on Wednesday, Mastercard said it has decided not to “activate” its sponsorship of Copa America in Brazil after a thorough analysis. The payments company remains a sponsor of the tournament, as it has been since 1992.

Last week organizers of the Copa America, which kicks off on Sunday, unexpectedly relocated the tournament to Brazil after co-hosts Colombia were dropped due to civil unrest and Argentina withdrew following a surge in COVID-19 cases.

Brazilian President Jair Bolsonaro, who has played down the severity of the coronavirus and fought against lockdowns, threw his support behind the move. But public health experts, Supreme Court justices and Brazilian footballers questioned the wisdom of hosting the tournament with a pandemic raging.

More than 475,000 Brazilians have died from COVID-19, the world’s worst official death toll outside the United States, and experts warn of a third wave approaching along with winter in the southern hemisphere.

The Brazilian soccer team cited “humanitarian” concerns in a statement criticizing the organization of the Copa America on Wednesday, but they committed to participating in the tournament after rumours of a potential boycott.

(Reporting by Carolina Mandl; Editing by Brad Haynes and Emelia Sithole-Matarise)

Microsoft, Mastercard Sign on to Vp Harris’s Central America Strategy

By Nandita Bose

President Joe Biden has tasked Harris with leading U.S. efforts with Mexico and the Northern Triangle countries of Honduras, El Salvador and Guatemala, to deal with an increase in migration into the United States. Since then, Harris has taken a series of steps to improve conditions and lower migration from the region.

During the meeting on Thursday, Harris will urge businesses to make “new and significant commitments” to boost economic opportunities in the region, said the White House official, who spoke on the condition of anonymity.

The meeting will be attended by top executives from yogurt maker Chobani, food giant Nestle’s Nespresso unit, financial companies Bancolombia and Davivienda as well as language-learning website Duolingo.

Non-profits Accion and Pro Mujer, along with the Tent Partnership for Refugees and Harvard University’s T.H. Chan School of Public Health will also attend.

The 12 companies will announce measures to support such efforts, the official said. For example, Microsoft has agreed to expand internet access to as many as three million people in the region by July 2022 and Nespresso plans to begin buying some of its coffee from El Salvador and Honduras with a minimum regional investment of $150 million by 2025, the White House official said.

Chobani has agreed to bring its incubator program for local entrepreneurs to Guatemala while Mastercard will aim to bring five million people in the region who currently lack banking services into the financial system and give one million micro and small businesses access to electronic banking.

The U.S. vice president’s push to spur regional economic growth will focus on six areas.

These include expanding affordable internet access, combating food shortages by boosting farm productivity and backing regional efforts to fight climate change and make a transition to clean energy.

It will also aim to expand job training programs and improve public health access.

In April, Harris unveiled an additional $310 million in U.S. aid to Central America. She is expected to visit Guatemala and Mexico on June 7 and 8 – her first overseas trip as vice president.

U.S. officials see corruption as a major contributor to a migrant exodus from the region, along with gang violence and natural disasters, issues that represent hurdles for companies investing in the region.

Some Central American leaders recently pushed back on the Biden administration’s anti-corruption strategy, which included releasing a list labeling 17 regional politicians as corrupt.

(Reporting by Nandita Bose in Washington; Editing by Devika Syamnath and Chizu Nomiyama)

Worried About A Market Crash? Consult The Big Money Index

And Consider These Stocks When It Does

They get cranky, roll over, fall out of bed, and hit their heads on the floor. It’s part of life, and most people don’t like when it happens.

But what if I told you there’s a tool that can alert you before markets roll-over?

It may sound too good to be true. But here I’ll introduce you to my favorite indicator that can do exactly that. I’ll show you how it works, what it’s saying now, and I’ll even show you examples of outlier stocks that weather the inevitable storms particularly well over the long-run.

The Big Money Index (BMI) is a great market timing indicator. It was developed by MAPsignals, a research firm dedicated to tracking Big Money investors in real-time. The idea is this: JPMorgan did a study estimating that 10% of all daily stock trading volume is due to fundamental discretionary traders. The lion’s share of trading is institutional.

If we can identify when huge investors are moving in and out of stocks in an unusual way, we can try and be ahead of the crowd. This way we can have a possible advantage and ride their coattails. We used our Wall Street experience of handling big stock orders to help us create this indicator. It’s our best guess of where the Big Money is heading on a daily basis.

When we add up all the daily buy and sell signals and smooth them out over a 25-day moving average, we get the Big Money Index.

Right now, it’s indicating higher prices for stocks. When it rises, like now, usually the market follows:

It looks like this:

MAPsignals.com

We’ve back-tested this indicator going back over 30 years. When overbought, (80% or more) markets crest shortly thereafter often preceding a market correction. These are rare occurrences: The BMI was overbought just 20% of the last 3 decades.

Rarer still is an oversold BMI: only 4% occurred the last 30 years. When the Big Money Index goes deeply oversold, that’s when history says stocks are bound to rise. Markets usually rocket higher weeks and months later.

Here are some recent examples of the Big Money Index accurately foreshadowing market peaks and troughs:

  • January 2018 peak
  • December 2018 trough
  • February 2020 peak
  • March 2020 trough
  • September 2020 peak
  • October 2020 Election volatility
  • November 2020 rally

If a deeply oversold Big Money Index is great for identifying buy opportunities, then how do we know when to side-step a market drop?

Below is the same BMI chart. Only we’ve added periods where the 10- day average was below 65%. That just basically means, the BMI was weakening. Here’s what we saw over the last three years:

When red comes, it generally lasts a while. This also corresponds to a falling then recovering index. When red starts, indexes usually fall. Red can only stop when Big Money buying lifts the average above 65%.

To summarize, when the BMI is falling, the S&P 500 is mostly flat:

From 2012, we see similar:

To avoid being left holding the bag when the next market drop comes, watch for a falling Big Money Index. Remember, Big Money means we’re trying to track institutional investors. They usually have an edge over everyone else. They tend to have the best market information out there. So, it’s best to watch them!

Now you know about the BMI. You know you can use it to potentially manage your risk. You know you should watch out for a falling BMI to alert you of danger ahead.

They say the best defense is a good offense. I told you I’d let you know which stocks to hold when that inevitable cranky stock market comes. To find them, I went back over the following periods of market turmoil:

Each of these drops was preceded by a falling Big Money Index. And each time the market troughed, I went and looked at which stocks came out with flying colors.

Market volatility is inevitable. But when it comes, we’ve found the best defense is owning outlier stocks. These stocks are the best of the best. They have growing sales, earnings, and profits. And they are also getting scooped up by Big Money investors.

Hidden in MAPsignals buy and sell signals are high-quality stocks that can offer opportunity when things get bumpy.

You’ll notice in the 6-year charts below, the green bars indicate Big Money buying when stocks have superior fundamentals. These are mother-outliers. All that green, we call the stairway to heaven. But even through periods of wicked volatility, these stocks do incredibly well over the long run.

Facebook Inc. (FB) rose 293% since 2015:

Source: MAPsignals, end of day data sourced from Tiingo.com

Mastercard Inc. (MA) rose 378% over the same period:

Source: MAPsignals, end of day data sourced from Tiingo.com

Nvidia Corp. (NVDA) rose an astounding 3,067% since 2015:

Source: MAPsignals, end of day data sourced from Tiingo.com

Compare those stocks with the SPY SPDR S&P 500 ETF which gained 129%.

These outlier stocks are ones I would want to own when the next market rough patch comes.

So, there you have it: a detailed playbook on how to forecast, avoid, and even defend against the next market crash. We all know it’s coming eventually, but now you can be armed with tools to help you through.

The next time markets get cranky, you just might already be out of sight avoiding it until happier days.

The Bottom Line

Trying to understand what the Big Money is doing is important. Currently the Big Money Index is pointing higher, which is near-term bullish. When it heads lower, I’ll be paying attention. I believe in looking for quality companies in times of turmoil.

To learn more about MAPsignals’ Big Money Index please visit: www.mapsignals.com

Disclosure: the author holds no positions FB, MA, NVDA, & SPY at the time of publication.

Investment Research Disclaimer

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