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In the latest trading session, 3M (MMM) closed at $184.55, marking a -0.65% move from the previous day. This change was narrower than the S&P 500’s daily loss of 0.77%.

– Zacks

Heading into today, shares of the maker of Post-it notes, industrial coatings and ceramics had lost 7.78% over the past month, lagging the Conglomerates sector’s gain of 0.49% and the S&P 500’s gain of 1.55% in that time.

Investors will be hoping for strength from MMM as it approaches its next earnings release, which is expected to be October 26, 2021. In that report, analysts expect MMM to post earnings of $2.45 per share. This would mark year-over-year growth of 0.82%. Meanwhile, our latest consensus estimate is calling for revenue of $8.92 billion, up 6.79% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.11 per share and revenue of $35.38 billion. These totals would mark changes of +15.68% and +9.92%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for MMM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MMM is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, MMM currently has a Forward P/E ratio of 18.38. This represents a discount compared to its industry’s average Forward P/E of 18.72.

Also, we should mention that MMM has a PEG ratio of 1.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. MMM’s industry had an average PEG ratio of 1.7 as of yesterday’s close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

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3M Company (MMM): Free Stock Analysis Report
 
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In the latest trading session, QuantumScape Corporation (QS) closed at $21.08, marking a -1.45% move from the previous day. This move lagged the S&P 500’s daily loss of 0.77%.

– Zacks

Coming into today, shares of the company had lost 5.02% in the past month. In that same time, the Auto-Tires-Trucks sector lost 0.81%, while the S&P 500 gained 1.55%.

Investors will be hoping for strength from QS as it approaches its next earnings release.

It is also important to note the recent changes to analyst estimates for QS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. QS is holding a Zacks Rank of #3 (Hold) right now.

The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
QuantumScape Corporation (QS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

https://www.entrepreneur.com/article/385122

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.

In the latest trading session, Starbucks (SBUX) closed at $119.34, marking a +0.46% move from the previous day. The stock outpaced the S&P 500’s daily loss of 0.77%.

– Zacks

Heading into today, shares of the coffee chain had gained 2.63% over the past month, outpacing the Retail-Wholesale sector’s gain of 0.63% and the S&P 500’s gain of 1.55% in that time.

SBUX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.01, up 98.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.3 billion, up 33.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.25 per share and revenue of $29.21 billion. These totals would mark changes of +177.78% and +24.19%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. SBUX is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, SBUX is holding a Forward P/E ratio of 36.55. Its industry sports an average Forward P/E of 25.36, so we one might conclude that SBUX is trading at a premium comparatively.

We can also see that SBUX currently has a PEG ratio of 3.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. SBUX’s industry had an average PEG ratio of 2.77 as of yesterday’s close.

The Retail – Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Starbucks Corporation (SBUX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/385124

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.

In the latest trading session, Cloudflare (NET) closed at $127.48, marking a -0.4% move from the previous day. This move was narrower than the S&P 500’s daily loss of 0.77%.

– Zacks

Coming into today, shares of the web security and content delivery company had gained 4.71% in the past month. In that same time, the Computer and Technology sector gained 3.13%, while the S&P 500 gained 1.55%.

Investors will be hoping for strength from NET as it approaches its next earnings release. The company is expected to report EPS of -$0.04, down 100% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $165.87 million, up 45.3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.11 per share and revenue of $632.43 million. These totals would mark changes of +8.33% and +46.72%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NET. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. NET currently has a Zacks Rank of #3 (Hold).

The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Cloudflare, Inc. (NET): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

https://www.entrepreneur.com/article/385121

The market expects IsoRay (ISR) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2021. This widely-known consensus outlook is important in assessing the company’s earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

– Zacks

The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management’s discussion of business conditions on the earnings call, it’s worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This isotope-based medical products maker is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +50%.

Revenues are expected to be $2.61 million, up 14.5% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings Whisper

Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for IsoRay?

For IsoRay, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that IsoRay will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company’s future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that IsoRay would post a loss of $0.01 per share when it actually produced a loss of $0.01, delivering no surprise.

The company has not been able to beat consensus EPS estimates in any of the last four quarters.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

IsoRay doesn’t appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.

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IsoRay, Inc. (ISR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/384772

Murphy USA Inc. MUSA rides on solid volumes and strong liquidity. However, its debt burden is a downside. The company has seen northward estimate revisions for 2021 earnings in the past 60 days.

– Zacks

It currently has a Zacks Rank #3 (Hold) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) 2 (Buy) or 3 offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

This leading independent retailer of motor fuel and convenience merchandise in the United States has a trailing four-quarter earnings surprise of 18.66%, on average.

Courtesy of its robust prospects, the stock is worth holding onto at the moment.

What’s Favoring the Stock?

A glance at the company’s price trend shows that the stock has had an impressive run on the bourses in the year-to-date period. Shares of Murphy USA have rallied 18.2% compared with the 15.6% increase of its industry.

Image Source: Zacks Investment Research

Murphy USA’s unique high-volume, low-cost business model helps it retain solid profitability despite a fiercely competitive retail environment. The company, which sells more than 4 billion gallons of retail fuel, annually, owns above 90% of its gasoline stations. This enables it to contain its operating expenses. The proximity of Murphy USA’s fuel stations to Walmart WMT supercenters aids the company to gain traction from the steady flow of traffic that these stores attract, thereby driving its above-average fuel sales volume.

The company’s outsourcing of raw materials is another key catalyst. With its access to pipelines and product distribution terminals, Murphy USA is able to avail of fuel at a cheaper cost than most can buy. This, in turn, allows the company to sell retail gasoline at a discount.

Through its shareholder-friendly capital allocations, Murphy USA is committed to return a portion of its free cash flow to its shareholders through continued and ongoing share repurchases. As an evidence, the company spent 48% of its capital budget from 2015 to 2019 on stock buybacks.

The company is currently building up to 50 larger-format stores, annually, since the start of this year as well as 25 raze-and-rebuilds. Further, in the last reported quarter, Murphy USA’s 2021 guidance included 34-38 new stores and up to 31 raze-and-rebuilds for 2021. The motor fuel retailer added that it is open to grow inorganically as well.

Management believes that the company’s strong operational performance and positive trends will allow its stock to achieve a sustainable EBITDA of more than $500 million in 2021, two years earlier than expected.

Factors Deterring the Stock’s Growth

However, there are a few factors, which might impede the stock’s progress.

Being in the convenience store business, Murphy USA is highly dependent on tobacco sales. With smoking rates falling, the company’s tobacco comps face persistent pressure. The tepid tobacco sales not only affect its top-line performance but also limit margin growth.

Moreover, Murphy USA’s high-debt levels remain a concern, which make it vulnerable to any volatility in commodity prices. Its total debt is currently more than $1.8 billion with only $165 million in cash & cash equivalents. Its debt-to-capitalization as of the end of second-quarter 2021 was 70.5%, deteriorating from the sequential quarter’s 69.9%.

Stocks to Consider

Better-ranked players in the energy space include Matador Resources Company MTDR and Continental Resources, Inc. CLR, each presently flaunting a Zacks Rank of 1.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Walmart Inc. (WMT): Free Stock Analysis Report
 
Murphy USA Inc. (MUSA): Free Stock Analysis Report
 
Continental Resources, Inc. (CLR): Free Stock Analysis Report
 
Matador Resources Company (MTDR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/384420

G-III Apparel Group, Ltd. GIII is one of the players in the Textile – Apparel industry, which is presently placed in the top 4% of the Zacks Classified industries.
Shares of this renowned New York-based company have returned 136.3% in a year, outperforming its industry’s 40.6% rally.
The stock’s bullish run on the bourses is justified by the company’s solid execution of its strategies including digital progress and brand strength. Its recently reported second-quarter fiscal 2022 earnings performance is further boosting its presently Zacks Rank #2 (Buy) stock.

– Zacks

Image Source: Zacks Investment Research

Delving Deeper

G-III Apparel’s digital business is constantly making a significant contribution to its results. Digital sales of the company’s products have been accelerating for a while now. On the company’s retail partners’ and its own sites, sales of the products surged more than 70% during second-quarter fiscal 2022 from the level achieved two years ago. In China, digital sales were stronger than the store sales in the reported quarter. Vilebrequin brand’s digital sites were up about 70% from the level recorded two years ago.
Management is on track to launch the revamped websites of DKNY and Karl Lagerfeld Paris. These sites are likely to offer an immersive brand content to engage consumers, thus facilitating conversion to sales tools, such as virtual selling. It is steadily investing in data analytics capabilities to better know the consumers across channels and boost their shopping experiences. Management informed that the company is partnering with GEODIS, its logistics provider, to boost the direct-to-consumer capabilities.
Speaking of brand power, G-III Apparel is quite optimistic about its diversified portfolio anchored by the five global power brands, namely DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. Management expects the annual net wholesale sales potential for these five brands to be $4 billion. For the second half of fiscal 2022, G-III Apparel is incorporating a wider functionality in fabrics, intending to serve broader lifestyles. It is on track to add collections focusing on particular sports activities and high-performance fitness.
G-III Apparel is also witnessing momentum in casual categories with a potential to expand into the outdoor and sports market. The shoes and handbag categories are also growing steadily. The jeans category is a bright spot too. With respect to athleisure and sportswear, the company is consistently expanding its collections to cash in on the consumers’ growing demand. The company had also successfully launched the Karl Lagerfeld Paris women’s brand across 75 doors at Macy’s M. It remains on course to triple the distribution of its sportswear line to 250 doors by the end of fiscal 2022 and introduce a dress line to 75 doors by the forthcoming spring.

Stellar Q2

In second-quarter fiscal 2022, G-III Apparel’s sales and earnings beat on the Zacks Consensus Estimate and improved year over year. Results also exceeded management’s expectations. Solid gains from the company’s assortments and digital business drove the quarterly results. Higher sales at the Wholesale unit aided the overall performance. However, its retail business has been sluggish for a while and the segment’s sales plunged 22.9% in the fiscal second quarter. Nonetheless, management completed the division’s restructuring and the new retail model is poised to attain profitability.
A stellar quarter helped management provide an upbeat outlook for the third quarter of fiscal 2022 and the full fiscal. For the same period, G-III Apparel projected net sales of $1 billion and earnings per share of $1.65-$1.75. These views suggest growth from the recorded net sales of $826.6 million and earnings per share of $1.29, respectively, in the year-earlier quarter.
For fiscal 2022, the company guided net sales of $2.70 billion, up from $2.57 billion predicted earlier and also indicating a rise from $2.06 billion delivered in fiscal 2021. It envisioned earnings per share in the band of $3.10-$3.20, higher than $2.60-$2.70 guided previously.
Given all the aforesaid tailwinds, we believe, G-III Apparel will continue to perform well and retain its solid momentum on the bourses.

Don’t Miss These Solid Bets Too

Ralph Lauren RL has a long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corp. PVH, also a Zacks #1 Ranked stock, has a long-term earnings growth rate of 38.5%.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Macys, Inc. (M): Free Stock Analysis Report
 
Ralph Lauren Corporation (RL): Free Stock Analysis Report
 
PVH Corp. (PVH): Free Stock Analysis Report
 
GIII Apparel Group, LTD. (GIII): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

https://www.entrepreneur.com/article/384421

The joint venture (JV) of UGI Energy Services, LLC, a subsidiary of UGI Corporation UGI, and Global Common Energy, LLC called Cayuga RNG Holdings, LLC inked a deal to develop its second renewable natural gas (RNG) project in upstate New York. Per the agreement, the endeavor will include construction of an anaerobic digester and a combined heat and power project.
The project is likely to get completed in the second half of 2022. Upon conclusion, it will produce 85 million cubic feet of environmentally-friendly RNG each year. This project will be located at Allen Farms, nearly five miles from the place where Cayuga RNG’s first project Spruce Haven is being developed. Allen Farms signed a contract with Cayuga RNG to provide dairy waste that will serve as the feedstock for RNG.
The previously-announced project includes an existing anaerobic digester that generates biogas, which is used in producing renewable electricity. Following this deal, the company’s investment in RNG projects will be more than $100 million.
UGI Corp.’s current investment is in sync with its objective of providing renewable and sustainable energy to customers, thereby reducing greenhouse gas (GHG) emissions in the process. It will also expand the utility’s business in the Finger Lakes region of New York.

– Zacks

Environmentally-Friendly Efforts

The company’s buyout of GHI Energy, LLC, an RNG company operating in California, is helping it expand its renewable product offerings and supporting its eco-friendly initiatives. In August, it announced the JV (Hamilton RNG) between UGI Energy Services’ unit and Synthica Energy, LLC to develop innovative food waste digester projects for producing RNG in Ohio and Kentucky. Also, in May, it entered into a JV to develop dairy farm digester projects for producing RNG in upstate New York.
Moreover, it disposed of its 5.97% ownership interest in the Conemaugh coal-fired generating station during fiscal 2020 to curb the total Scope I direct emissions by more than 30%. In May 2021, it announced plans to trim Scope I GHG Emissions by 55% within 2025.

Steady Investments in Infrastructure

It continues making systematic capital investments to address the infrastructural need for various capital projects, carry out strategic acquisitions to expand operations and increase the reliability of natural gas production and storage facilities. The company is also replacing its aging infrastructure for modernizing the overall system. After spending $665 million in fiscal 2020, it spent $438 million in the first three quarters of fiscal 2021, marginally down from $444 million in the same period of the last fiscal year. These investments will assist it to achieve the long-term annual earnings per share growth target of 6-10%.
Other gas distribution utilities also have investment plans in place to increase its reliability of services and serve an increasing customer base effectively. MDU Resources MDU plans to invest $3,027 million during the 2021-2025 forecast period while Atmos Energy ATO is planning to spend in the range of $11-$12 billion from fiscal 2021 to fiscal 2025. Also, ONEOK OKE expects to spend in the band of $525-$675 million for 2021.

Price Performance

Shares of the company have gained 15%, outperforming the industry’s increase of 5.5% in the past six months.

Six Months’ Price Performance

Image Source: Zacks Investment Research

Zacks Rank

The utility carries a Zacks Rank#3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ONEOK, Inc. (OKE): Free Stock Analysis Report
 
Atmos Energy Corporation (ATO): Free Stock Analysis Report
 
UGI Corporation (UGI): Free Stock Analysis Report
 
MDU Resources Group, Inc. (MDU): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/384422

Keeping pace with the growing global trend of open banking, Mastercard Inc. MA announced that it will acquire Aiia, a leading European open banking technology provider. Aiia provides a direct connection through a single API to more than 2700 banks across Europe to its bank, fintech and payment firm clients.
Following this news, the stock gained 1.32% in the last trading day.

– Zacks

What is Open Banking?

Open banking refers to the sharing of financial data of account holders with third party financial service providers through a secured Application Programming Interface (API).
Customers’ data shared with their consent are then analyzed by the financial services providers to gain a deeper understanding of their behavior, preferences and values. These are then used in creating personalized solutions and services for them.
The idea behind this bank-fintech arrangement is to provide a much higher level of customization and personalized services to customers at a lower cost. Open banking is part of the second payment service directive (PSD2), which the financial institutions are compelled to comply with in the European Union. Growing digitalization and customers’ desire to get customized products and services are the main drivers of the open banking concept, which the traditional banking were incapable of.

Big-Time Adoption of Open Banking

In the European Union (EU), banks are mandated to transition to open banking for fostering innovation and empowering consumers. However, the main hindrance to this form of banking is customers’ apprehension to share their details for the fear of identity theft and monetary loss. Thus a reliable and trusted source can allay these misgivings of customers.
Mastercard is creating its presence in the open banking space by providing its technology platforms, data connectivity and infrastructure, which will be combined with data privacy and security principles in the process of data transfer in open banking.
According to Visa, trust in the financial institution, consumer education and consent plus the ability to transparently monitor and control the usage of data are the critical pillars of ensuring success in open banking.

Mastercard: A Huge Supporter of Open Banking

This payment processor is an early advocate of open banking. The hallmark of a leader is to spot the potential opportunity and immediately align with it to ride the industry growth wave. On this front, Mastercard is taking part in this revolution with all guns blazing. In 2019, the company launched its first open banking connectivity offering in the UK and Poland through a partnership with Token.io, an open banking payments platform.
Then in 2020, it gained another major footprint in the open banking space with the acquisition of Finicity that connects users’ bank accounts with other payment apps.

The company’s commitment to open banking continued with the buyout of clearing and instant payment services, and the e-billing solutions of Nets’ Corporate Services business in 2021. This will strengthen Mastercard’s account-to-account (A2A) payment capabilities.  

Mastercard’s predecessor Visa Inc. V is also taking deep plunges in the open banking space to cement its leadership position in the payments processing space. To this end, it already acquired Tink, which just like Aiia, provides data transfer via API to third parties.

The participation of payment facilitators in the domain of open banking is also imperative to retain their position in the changing financial transaction services industry. The advancement of open banking can reduce the usage of cards, which are now widely circulated to make payments. Participation in open banking will create new revenue streams.
Mastercard is steadfast in moving along with the shifting industry. It is also aiding crypto currency and to this end, recently partnered with the U.S. cryptocurrency exchange Gemini to launch the first credit card . This card will reward its users in  digital currency on the purchases made this year.

Mastercard’s strong brand name, vast global business and a solid cash generating capability make it an investor favorite. Funds are intelligently deployed to strategic initiatives like investment in technology, execution of acquisitions and addition of shareholder value through share buybacks and dividend payments.

Year to date, the stock has dipped 3.4% compared with its industry’s decline of 12.8%. Other stocks in the same space including American Express Co. AXP and Discover Financial Services DFS have, however, gained 32% and 33%, respectively, in the same time frame.

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Mastercard carries a Zacks Rank #3 (Hold),  currently. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

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Mastercard Incorporated (MA): Free Stock Analysis Report
 
Visa Inc. (V): Free Stock Analysis Report
 
Discover Financial Services (DFS): Free Stock Analysis Report
 
American Express Company (AXP): Free Stock Analysis Report
 
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https://www.entrepreneur.com/article/384423

Chevron Corporation CVX is attempting to sell its holdings in south Texas’ Eagle Ford Basin, per Reuters’ sources. The company’s divestiture intentions came after it reportedly met activist hedge fund Engine No. 1 to discuss its measures to reduce carbon emissions.

– Zacks

The energy player calculated all its assets’ total proved developed resources — the quantity of oil and gas with 90% or greater likelihood of profitable extraction — were worth roughly $1 billion at $70 per barrel of oil and $4 per metric million British thermal units (MMBtu) of gas, according to the document. The assets might be worth up to $3.8 billion if undeveloped inventory is included.

According to the marketing document, Chevron’s Eagle Ford assets, which it obtained as part of its acquisition of Noble Energy last year, encompass 30,440 net acres and this year, the same delivered a net output of 30,300 barrels of oil equivalent per day, of which 45% constitutes natural gas.

Chevron, which intends to start share repurchases in the current quarter, ramped up its sales program in June by attempting to sell two groups of conventional oil and gas assets worth more than $1 billion in the Permian Basin, the most prolific shale play in the United States. It is considering selling lower-value assets to focus on its highest-performing assets.

The firm has no intention to downsize its oil and gas operations in favor of wind and solar energy. It will spend $3 billion over the next seven years on technology to eliminate hazardous emissions from its activities instead of investing in renewable energy sources, such as wind or solar power.

Brief on the Company

Chevron is one of the largest publicly traded oil and gas companies in the world with operations spread to almost every corner of the globe. A component of the Dow Jones Industrial Average, this energy player is fully integrated, participating in every energy-related process, ranging from oil production to refining and marketing.

Zacks Rank & Other Key Picks

Chevron currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy  space include Devon Energy Corporation DVN, Matador Resources Company MTDR and Continental Resources, Inc. CLR, each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Devon Energy Corporation (DVN): Free Stock Analysis Report
 
Chevron Corporation (CVX): Free Stock Analysis Report
 
Continental Resources, Inc. (CLR): Free Stock Analysis Report
 
Matador Resources Company (MTDR): Free Stock Analysis Report
 
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Zacks Investment Research

https://www.entrepreneur.com/article/384424