Wall Street expects a year-over-year increase in earnings on higher revenues when CarMax (KMX) reports results for the quarter ended November 2021. While this widely-known consensus outlook is important in gauging the company’s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

– Zacks

The earnings report, which is expected to be released on December 22, 2021, 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 management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This used car dealership chain is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of +5.6%.

Revenues are expected to be $7.63 billion, up 47.2% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 2.79% lower over the last 30 days to the current level. 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 CarMax?

For CarMax, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company’s earnings prospects. This has resulted in an Earnings ESP of +6.75%.

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

So, this combination indicates that CarMax will most likely 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 CarMax would post earnings of $1.95 per share when it actually produced earnings of $1.72, delivering a surprise of -11.79%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

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.

CarMax appears 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.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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

https://www.entrepreneur.com/article/403016

Penny stocks are a great way to make money in the stock market. They’re also helpful when it comes to leveraging smaller sums of capital with the potential to turn that into something much bigger. If you’re just getting started and learning how to day trade, for this article, we’re talking about stocks under $5.

PennyStocks.com – PennyStocks

AMC Entertainment (NYSE: AMC) is one of the most famous examples of what can happen when penny stocks explode. Despite shares taking a tumble this quarter, AMC stock is still up quite substantially, year-to-date. Believe it or not, the former penny stock kicked 2021 off at trading right around $2 a share. Fast-forward to this week, and not only had AMC reached record levels of $72.62, it’s still up more than 1,000%.

Are Penny Stocks Worth It?

When you’re looking at companies like AMC, the answer to the question, “Are penny stocks worth it,” may seem obvious. Bear in mind that there are plenty of risks involved, and in many cases, there are more penny stocks that ultimately deteriorate than explode thousands of percentage points. But if you understand how to trade, handle risk, and like making money quickly, then penny stocks can be well worth it. Today we’re looking at a handful of names trading for less than $4 right now. They’ve gained momentum and turned some heads recently as well.

Penny Stocks To Watch This Week

Palatin Technologies (NYSE: PTN)

If you’re on the hunt for biotech penny stocks to add to your list, Palatin Technologies might be a name you’ve come across before. The company develops treatment candidates addressing various medical conditions. Its current pipeline includes PL9654 in treating dry eye disease, PL8177 for ulcerative colitis, and Vyleesi for premenopausal women with acquired, generalized hypoactive sexual desire disorder.

Read more: Penny Stocks To Buy According To 5 Analysts With 55%-246% Targets

Both PL9654 and 8177 are clinical phase candidates and could be a point of interest heading into the new year. That’s because they have near-term potential catalysts to keep track of. In the case of PL9654, Palatin has commented that it expects to initiate a pivotal Phase 3 trial in dry eye disease patients in December 2021, with data coming next year. Furthermore, PL8177 has a Phase 2 trial beginning during the “first half” of next year.

In addition to the timing of these trials, speculative momentum has also become a factor thanks to new attention on vaccine stocks. That’s because the company announced last year that it would begin developing PL8177 as a potential treatment for COVID patients. With this as the latest head-turning catalysts, PTN could be one of the penny stocks to watch this week & heading into year-end.

TOMI Environmental Solutions (NASDAQ: TOMZ)

TOMI Environmental was one of the penny stocks discussed earlier this week. Short squeeze penny stocks have become a new topic of discussion among retail traders. As such, any stock with some short interest and/or low float intrigues some traders. As of this week, according to Fintel data, TOMZ stock shows a short float percentage of roughly 3%.

Most wouldn’t consider this a “massive short,” but there are other factors to account for. Fintel also shows that the borrow fee rate is relatively high and the “days to cover” is relatively low. TOMZ stock also has a total outstanding share count below 20 million, placing it among low float penny stocks.

Is there anything else to look at besides TOMZ’s short interest? Once again, the resurgence of virus fears could also play a role. TOMI specializes in disinfection and decontamination. Earlier this month, the company announced the launch of its SteraMist Amazon store to sell disinfectant products like its SteraPak and Binary Ionization Technology solutions. Commenting further on this, CEO Dr. Halden Shane explained, “As new pathogens emerge, including the new variant of SARS CoV-2 Omicron and the deadly C. auris fungus, continue to spread around the world, disinfection is deemed critical, and SteraMist is here to stop the spread.”

Reliance Global Group (NASDAQ: RELI)

We discussed Reliance Global in the same context as TOMZ stock earlier this week. However, in this case, RELI’s short float percentage is much more significant. According to Fintel, that figure is well above 30% right now.

Insurance stocks have been in and out of the retail trading spotlight recently. Reliance, in particular, specializes in wholesale and retail insurance agency development. It has amassed a portfolio of companies leveraging technology to personalize customer experiences. As we discussed yesterday, last week’s launch of its 5MinuteInsure platform brought the platform to a total of 20 states in the U.S., with a combined population of more than 100 million.

“We have added another 8 states to the 5MinuteInsure.com platform, and are now commercially available a total of 20-states across the U.S….We are also in advanced discussions with potentially significant acquisitions, building on our strong track record, which we believe could further expand our product offering and geographic reach.”

Ezra Beyman, CEO of Reliance Global Group

With plans for continued growth, RELI could be one of the penny stocks to watch right now.

What’s On Your List Of Penny Stocks Today?

Many people will associate “penny stocks” with shares of worthless companies trading on the OTC. But if you’ve read our articles for a while, you know that there’s much more to this world of low-priced stocks than that. As discussed in this article, many of the companies that fall into this niche are in their very early stages of development.

Read more: Penny Stocks Are Volatile, Here’s How to Trade Them and 3 to Watch

Since this is the case, it’s important to note that small developments can equate to significant reactions in the market. That goes for both positive and negative updates. These are just a few of the penny stocks that’ve gained attention recently and if they’re on your watch list, comment below on what you’re looking at with some of these companies.

If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!

https://www.entrepreneur.com/article/402685

Wall Street is at a critical juncture now as the Fed is likely to speed up the QE tapering ahead and the Omicron virus is spreading fast. While the previous factor may raise interest rates ahead, the latter factor may drive down bond yields due to a safe-haven rally.

– Zacks

In such a scenario, investors can seek safety in high-quality stocks and the related ETFs. Quality stocks are generally rich in value characteristics like strong return on equity, low earnings variability, higher free cash margins and low debt to equity.

Thanks to the above-average and high-quality traits, quality ETFs may go a long way in protecting one’s portfolio in turbulent times. SPDR MSCI USA StrategicFactors ETF QUS, VanEck Vectors Morningstar Wide Moat ETF MOAT and iShares Edge MSCI USA Quality Factor (QUAL) are some of the ETF picks. There are some quality stock picks too which include Bunge Limited BG, Newtek Business Services NEWT and ConocoPhillips COP.

Why to Pick Quality Investments

The broader market has become extremely volatile and news-driven. We have been seeing market slumps on Omicron fear and following relief rallies on any positive update on the virus front. Meanwhile, inflation has been bothering the world, which may lead the Fed to announce a faster QE tapering and interest rate hikes in the coming days.

While any kind of Fed policy tightening may push up bond yields (which in turn may cause a market crash), virus fear may bolster the safe-haven rally and drag down the bond yields. In such a scenario, long-term investors need to be mindful and focus on fundamentals. On that front, quality ETFs and stocks appear to be great bets.

ETF picks

SPDR MSCI USA StrategicFactors ETF (QUS)

The underlying MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility (read: 5 Defensive ETF Bets as Omicron Enters the United States).

VanEck Vectors Morningstar Wide Moat ETF (MOAT)

The fund follows an index which tracks the overall performance of the “attractively priced companies with sustainable competitive advantages.” As a result, this fund also calls for quality exposure. MOAT tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.

iShares Edge MSCI USA Quality Factor (QUAL)

The fund looks to follow large- and mid-cap U.S. stocks displaying positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage).

Stock Picks

We highlight stocks with return on equity (ROE) of at least 10%, positive five-year historical EPS growth, current-year EPS growth rate at least 5% and dividend yield greater than 2%. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy).

ConocoPhillips (COP)

ConocoPhillips is primarily involved in the exploration and production of oil and natural gas. Considering proved reserves and production, COP is the largest explorer and producer in the world.

Zacks Rank: #1

ROE (TTM): 11.87%

5 Year Historical EPS Growth: 59.56%

Current Year’s Estimated Earnings Growth: 715.86%

Dividend Yield: 2.50%

Bunge Limited (BG)

Bunge Ltd. is an integrated global agribusiness and food company spanning the farm-to-consumer food chain. BG processes, produces, moves, distributes and markets food on five continents.

Zacks Rank: #1

ROE (TTM): 29.63%

5 Year Historical EPS Growth: 39.67%

Current Year’s Estimated Earnings Growth: 44.92%

Dividend Yield: 2.42%

Newtek Business Services (NEWT)

Newtek Capital hails from Financial – SBIC & Commercial Industry. NEWT resulted from the combination of the businesses previously owned by BJB Holdings, Inc. and REXX Environmental Corporation.

Newtek is operating as a holding company for a network of partner companies in a collaborative and coordinated effort to develop successful businesses in a number of existing as well as emerging, technological business lines.

Zacks Rank: #1

ROE (TTM): 20.18%

5 Year Historical EPS Growth: 28.31%

Current Year’s Estimated Earnings Growth: 66.83%

Dividend Yield: 11.66%

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

Get it free >>

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
 
ConocoPhillips (COP): Free Stock Analysis Report
 
Bunge Limited (BG): Free Stock Analysis Report
 
Newtek Business Services Corp. (NEWT): Free Stock Analysis Report
 
VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports
 
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/402697

Many retailers are finding themselves in a unique position with consumer demand high and inventory lower than normal. Given the supply chain issues the country is facing, retailers have been able to increase prices as opposed to previous years when customers would seek to take advantage of the best deals they could find.

– Zacks

Department store CEOs have repeatedly stated in recent months that they have been able to pass on higher costs to customers and have even been able to cut back on item discounts, pushing profits higher. Customers are worried that desirable products may not be in stock for long and are willing to pay more in fear of not finding the same product at a later date. But at this point in time, the U.S. consumer remains healthy and higher prices haven’t caused them to reduce spending.

According to the National Retail Federation (NRF), holiday sales are expected to hit a record, with the organization predicting a range of $843.4-$859 billion – an increase of 8.5-10% over last year. E-commerce sales are expected to top $200 billion for the first time. The fact that holiday sales could meet or even exceed these expectations in the face of a more than 30-year high in inflation is a testament to the true strength of the U.S. consumer.

NRF’s senior director Katherine Cullen stated recently that she expects an uptick in in-store shopping as we approach Super Saturday, which is the Saturday before Christmas. Heading into the final weeks of December, Cullen believes shoppers may run into deadlines and other issues relating to online orders, driving them to shop at storefronts.

These are all big positives for jewelers whose customers like to span the different jewelry displays and try on certain items. Jewelry-industry expert Edahan Golan estimates that overall U.S. jewelry sales are up more than 50% compared with pre-pandemic levels and up 56% over the same period last year. Sales in October rose to $7.3 billion, an increase of 37% from 2020 based on data from the U.S. Department of Commerce. For the year, U.S. jewelry sales have totaled $67.8 billion, and Golan expects holiday jewelry sales to end the year strong rising between 40-42%.

The fine jewelry market is estimated to be worth approximately $300 billion globally. A wedding industry set to break records next year will provide another boost for jewelry companies as more and more couples tie the knot. The Zacks Retail – Jewelry industry group is currently in the top 7% of all 254 industry groups and has vastly outperformed the market this year with an 81% return YTD.

Focusing on stocks within the top Zacks Ranked Industries can dramatically improve your stock picking success. Let’s take a look below at three jewelers contained within this top-performing industry group.

Signet Jewelers Limited (SIG)

Signet Jewelers is based in Bermuda and sells jewelry, watches and associated services. The company operates primarily in the US, UK, the Republic of Ireland and the Channel Islands. Founded in 1950, SIG is often considered the leading retailer of diamond jewelry.

A Zacks #2 Buy, SIG has been gaining from growth in e-commerce and enhanced marketing efforts. The company has also been succeeding in their brick-and-mortar locations, where same-store sales surged 130.8% year-over-year during Q2.

SIG management expects to keep gaining from its prudent growth efforts and consumers’ favorable responses toward its new product line. The company recently raised guidance for the third quarter of fiscal year 2022, now expecting sales to be in the range of $1.42-$1.45 billion, up from $1.26-$1.31 billion.

SIG shares have surged over 220% this year alone and yet still trade at a very reasonable 8.10 P/E. Having exceeded earnings estimates for the last four years running, SIG is in prime position to continue its record advance. The company most recently reported EPS of $1.43 earlier this month, a 113.43% surprise over consensus and has averaged a 77.23% surprise over the last four quarters.

Signet Jewelers (SIG) Price, Consensus and EPS Surprise

Image Source: Zacks Investment Research

The trends in sales and earnings are expected to continue, with the Zacks Consensus Estimates coming in at $7.45 billion (42.55% growth) and $10.87 (415.17% growth), respectively. Backed by expectations of continued business growth, SIG looks to maintain its strong momentum heading into 2022 with its first earnings report scheduled for March 17^th.

Movado Group Inc. (MOV)

The Movado Group is a global premier watchmaker who designs, manufactures, and distributes watches under ten of the most recognized brands including names such as Movado, Concord, Coach and Hugo Boss. MOV’s collection is sold throughout North and South America, Europe, Asia and the Far East.

Movado Group, a Zacks #2 (Buy) stock, trades at a relatively attractive valuation (12.28 P/E compared to industry 23.6 P/E) and has beaten earnings estimates in each of the past four quarters. MOV most recently reported earnings back in October of $1.36, a 94.3% surprise over consensus. The company has a trailing four-quarter average earnings surprise of 86.67%.

Movado Group (MOV) Price, Consensus and EPS Surprise

Image Source: Zacks Investment Research

MOV stock has been on a phenomenal run this year, advancing over 148% on the heels of above-average earnings growth. In the last 30 days analysts have upped their earnings consensus for MOV by +15.59%. The current Zacks Consensus Estimate for full-year earnings stands at $3.41, representing a 270.65% increase in EPS over 2020. MOV is slated for its next quarterly earnings report on 3/24/22.

Brilliant Earth Group, Inc. (BRLT)

Brilliant Earth Group is a digital-first jewelry company headquartered in San Francisco, CA. Founded in 2005, BRLT sells direct-to-consumer and has accrued more than 370,000 customers in the United States and abroad. The company enjoyed its IPO back in September of this year.

BRLT sells lab-created and recycled diamonds, neither of which require new mining. Blockchain technology is used to track the diamond’s origin and ownership. Brilliant Earth Group, currently a Zacks #3 stock (Hold), most recently reported earnings back in November of $0.08, an astounding 800% positive surprise over consensus estimates.

Investor Alert: Legal Marijuana Looking for big gains?

Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0%.

You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>

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
 
Signet Jewelers Limited (SIG): Free Stock Analysis Report
 
Movado Group Inc. (MOV): Free Stock Analysis Report
 
Brilliant Earth Group, Inc. (BRLT): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/402447

Oil price surged last week on rally in reopening trades. United States Oil Fund LP USO added 4.2% last week while the S&P 500 advanced 2.2%. Meanwhile, brent crude United States Brent Oil Fund LP BNO gained 3.9% last week. In fact, this was the biggest weekly gain for oil since late August.

– Zacks

The rally was spurred by bets that the new COVID-19 variant Omicron may cause milder illness than previously feared, fears over further lockdowns have been eased and the economic-reopening-friendly investments jumped along with the broader market. Overall, last week was upbeat for Wall Street with the S&P 500, the Dow Jones, the Nasdaq composite and the Russell 2000 gaining about 3.82%, 4.0%, 3.6% and 2.4%, respectively.

Oil prices staged a rally in most part of 2021. Global benchmark Brent has risen 38% this year, supported by output curbs led by the OPEC+ group of producers, though it has dropped from a three-year high above $86 in October.

The Omicron fear had dented the rally on demand worries few weeks back only to reignite the rebound all over again. “All the headlines are bullish today,” said Phil Flynn, senior analyst at Price Futures Group. “The momentum seems to be jumping back in,” as quoted on CNBC.

Apart from the easing concerns about the impact of the Omicron variant on global fuel demand, the fact that Iran nuclear talks hit a snag, deferring the return of Iranian crude supplies, boosted oil prices. Against this backdrop, below we highlight a few top-performing energy ETFs/ETNs of the last week.

ETFs in Focus

Credit Suisse S&P MLP Index ETN MLPO – Up 13.24%

The underlying S&P MLP Index includes both master limited partnerships and publicly traded limited liability companies which have a similar legal structure to MLPs and share the same tax benefits as MLPs. The ETN MLPO charges 95 bps in fees.

S&P Oil & Gas Eqpt & Services SPDR XES – Up 10.42%

The energy ETF puts 82.62% weight in Oil & Gas Equipment & Services, followed by 17.38% in Oil & Gas Drilling. Halliburton Company (5.26%), Schlumberger NV (5.0%) and Nabors Industries Ltd. (4.79%) are the top three holdings of the XES.       

Dynamic Oil & Gas Services Invesco ETF PXJ – Up 9.97%

The Dynamic Oil Services Intellidex Index is composed of stocks of 30 U.S. companies that assist in the production, processing and distribution of oil and gas. Nov (8.43%), Baker Hughes (8.28%) and Halliburton (7.94%) round out the top three spots of the ETF PXJ. Dynamic Oil & Gas Services Invesco ETF charges 63 bps in fees.

US Gasoline UGA – Up 9.96%

The United States Gasoline ETF seeks to track in percentage terms the movements of gasoline prices. The expense ratio of US Gasoline is 1.02%.

S&P Small-Cap Energy Invesco ETF PSCE – Up 9.58%

The underlying S&P SmallCap 600 Capped Energy Index is designed to measure the overall performance of common stocks of US energy companies. PDC Energy (10.01%), Range Resources (9.71%) and Matador Resources (8.75%) are the top three holdings of S&P Small-Cap Energy Invesco ETF.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

Get it free >>

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
 
United States Oil ETF (USO): ETF Research Reports
 
United States Brent Oil ETF (BNO): ETF Research Reports
 
United States Gasoline ETF (UGA): ETF Research Reports
 
SPDR S&P Oil & Gas Equipment & Services ETF (XES): ETF Research Reports
 
Invesco Dynamic Oil & Gas Services ETF (PXJ): ETF Research Reports
 
Invesco S&P SmallCap Energy ETF (PSCE): ETF Research Reports
 
Credit Suisse S&P MLP Index ETN (MLPO): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/402448

5 Penny Stocks To Watch With Potential Catalysts

It’s the weekend, and we’re nearing the end of the year. But that doesn’t mean the stock market closes anytime soon. December is always an interesting time for traders. Some are looking to cut some heavy bags and harvest the tax loss. Meanwhile, others are running full steam into year-end and on the hunt for the next round of multi-bagger penny stocks to buy.

PennyStocks.com – PennyStocks

For those in the latter of the two camps, volatility and catalysts are probably a big part of your research this month. Thanks to some kind of event, I can’t tell you how many small-cap stocks have exploded in a matter of hours. December has been action-packed, whether it’s news, SEC filings, company Tweets, or speculative buying based on rumors. This week is probably no different, and in today’s article, we look at five penny stocks to watch with potential catalysts before the end of the year.

Penny Stocks To Watch This Week

1. Alzamend Neuro (NASDAQ: ALZN)
2. X4 Pharmaceuticals (NASDAQ: XFOR)
3. Mustang Bio (NASDAQ: MBIO)
4. Cellectar Biosciences (NASDAQ: CLRB)
5. ReShape Lifesciences (NASDAQ: RSLS)

Before we get into this list of penny stocks, I need you to understand something. While many of these companies have upcoming events that’ve been pre-announced, that doesn’t automatically make them a Buy. There are plenty of times when companies present data or have upcoming news where a sell-off can get triggered. However, heading into the week, knowing what to look for and why is the first step in making a sound watch list.

Penny Stocks To Buy [or avoid] 1: Alzamend Neuro (NASDAQ: ALZN)

Alzamend develops treatments for neurodegenerative diseases and psychiatric disorders. It has created a robust pipeline of candidates with therapeutic candidates, AL001 and AL002. With AL001, Alzamend’s early studies have shown promise in improved memory and associative learning, which has supported continued progress as a potential Alzheimer’s disease treatment.

AL002, on the other hand, is a patented method for restoring the immunological system of a patient to combat Alzheimer’s. With a 1-2 punch in one of the popular niches of the biotech industry this year, ALZN stock has periodically gained some attention. Overall, however, things have been quiet for much of the 4th quarter.

What To Watch With ALZN Stock This Week

Alzamend is one of the few names on this list of penny stocks without a firm date of action. However, based on an old PR, we have some idea of the timing of a potential catalyst. In its November 30th update, the company said that it received confirmation that topline data from a Phase 1 trial of AL001 for dementia related to Alzheimer’s would be delivered “mid- to late-December” 2021.

– 4 Penny Stocks To Buy For Under $5 Before 2022

Stephan Jackman, Chief Executive Officer of Alzamend, also hinted that “We believe these data will confirm AL001’s potential as a replacement of the current lithium-based treatments and may provide a treatment to the over 40 million Americans suffering from Alzheimer’s and other neurodegenerative diseases and psychiatric disorders. We look forward to utilizing these data to move swiftly into a Phase 2 multiple ascending dose study involving Alzheimer’s patients in the first quarter of 2022.”

Furthering the speculation on ALZN stock is insider activity. A 10% owner and popular founder of Ault Global Holdings Inc. (NYSE: DPW), Milton Ault III purchased over 20,000 shares of ALZN stock at the beginning of December. The roughly $45,000 buy added to his growing position in Alzamend, which included another recent investment at the end of November to the tune of just under 20,000 shares. See more ALZN stock filings here.

2. X4 Pharmaceuticals (NASDAQ: XFOR)

X4 is heading into the second half of December, looking for some recovery. This year has been a tough one for the company, and its stock as shares slipped from over $10 to under $4. Missed earnings, discounted offerings, and slower progress seem to have been the negative catalysts throughout 2021. Will that turn around before 2022? That’s the question on anyone’s mind with XFOR stock on their list right now.

The company develops therapies for diseases involving the dysfunction of the CXCR4 pathway. These include primary immunodeficiencies and certain types of cancer, according to X4. Its lead candidate, mavorixafor, has already shown potential in a Phase 2 trial in people with WHIM syndrome. There’s also a global Phase 3 clinical trial in WHIM and two Phase 1b clinical trials – one as monotherapy in people with Severe Congenital Neutropenia and other chronic neutropenia conditions. The other is in combination with ibrutinib in people with Waldenström’s macroglobulinemia.

What To Watch With XFOR Stock This Week

There are a few things to keep tabs on this week regarding XFOR stock. First, the company will summarize data from 7 abstracts submitted and accepted for the American Society of Hematology (ASH) Meeting. This goes on from December 11th-14th. The majority of its presentations happen on the 11th and 12th.

You’ve also got December 16th to keep in mind. This is when X4 hosts a virtual seminar, “Understanding Primary Immunodeficiencies.” The presentation begins before the opening bell on Thursday.

Penny Stocks To Buy [or avoid] 3: Mustang Bio (NASDAQ: MBIO)

Whenever you see Mustang Bio mentioned, the chances are that Fortress Biotech (NASDAQ: FBIO) won’t be far behind. That’s because Fortress founded Mustang. Little fun facts may or may not be helpful to you, but they don’t hurt knowing, in my opinion. Regardless, Mustang could be in focus this week ahead of key events. The company develops cell and gene therapies for hematologic cancers. Its candidates have also targeted solid tumors and certain genetic diseases.

Its MB-106 platform could be the topic of conversation this week. This is Mustang’s treatment candidate for B-cell non-Hodgkin lymphoma (NHL). In previous studies, MB-106 showed a favorable safety profile as outpatient therapy. Furthermore, in patients with follicular lymphoma, the overall response rate was 92%, with the complete response rate coming in at 75%, according to the company. MB-106 was given a National Cancer Institute 2-year grant to support ongoing development.

Other than MB-106, Mustang has myriad other pipeline candidates for treating things like X-linked severe combined immunodeficiency, acute myeloid leukemia, multiple myeloma, glioblastoma, and cancers like prostate, pancreatic, gastric, and bladder.

What To Watch With MBIO Stock This Week

This week is all about MB-106. Mustang’s data was selected for presentation at the ASH conference. In addition, the company hosts a key opinion leader webinar on December 16th where Dr. Mazyar Shadman of Fred Hutchinson Cancer Research Center will discuss interim results from the ongoing Phase 1/2 clinical trial investigating the safety and efficacy of MB-106 for NHL and chronic lymphocytic leukemia.

4. Cellectar Biosciences (NASDAQ: CLRB)

The late-stage biotech company Cellectar Biosciences has also focused on developing cancer treatment candidates. Its iopofosine I-131 (CLR 131) is in ongoing Phase 2 CLOVER-1 for treating patients with multiple myeloma (MM). However, CLR 131 has also been studied for other indications. These include relapsed/refractory (r/r) Waldenstrom’s macroglobulinemia (WM); there’s also a CLOVER-2 Phase 1 study on the candidate in treating pediatric cancers.

– 3 Hot Penny Stocks For Your Watchlist Next Week

According to Cellectar, CLR 131 was also granted FDA Fast Track Designation for WM patients receiving two or more prior treatment regimens and r/r MM and r/r diffuse large B-cell lymphoma. Orphan Drug Designations were also given for WM, MM, rhabdomyosarcoma, neuroblastoma, osteosarcoma, and Ewing’s sarcoma. CLR 131 holds a Rare Pediatric Disease Desigatnio for rhabdomyosarcoma, neuroblastoma, osteosarcoma, and Ewing’s sarcoma, as well as an Orphan Drug Designations from the European Commission for r/r MM and WM.

With a laundry list of designations, CLR 131 has no shortage of indications to keep track of. But what will this week bring?

What To Watch With CLRB Stock This Week

Once again, we’ve got a company that has a potential catalyst dealing with the ASH conference. This week Cellectar presents data from its Phase 2 CLOVER-1 study of CLR 131. Something to note is that this presentation was over the weekend. So we’ll see if or how the market reacts come Monday morning.

5. ReShape Lifesciences (NASDAQ: RSLS)

Rounding out this list of penny stocks is ReShape Lifesciences. The last week of trading action has seen RSLS stock bounce back from 52-week lows of $1.61 to over $2 as of Friday. The company has been in and out of the spotlight as it enters into the commercial stages of its Lap-Band product designed to treat obesity.

At the beginning of October, ReShape announced the launch of a multi-platform ad campaign to market the product and highlight the additional support offered via the company’s virtual health platform, reshapecare. In its third-quarter update, the company also made mention that it has also rolled out supplements on its ReShape Marketplace to offer nutritional options in addition to its medical device portfolio. This helped bring momentum to the company as it managed to achieve 9-month and quarterly revenue growth over the same periods in 2020. In particular, 9-month growth came in just shy of 30%.

“Subsequent to all the major milestones we completed in the second quarter of this year, our entire organization focused on executing strategic initiatives this past quarter that create awareness and demand for our commercial portfolio of FDA approved and insurance reimbursed products to further develop a financially strengthened foundation for our business.”

Bart Bandy, President and Chief Executive Officer of ReShape Lifesciences.

What To Watch With RSLS Stock This Week

No, ReShape won’t be at the ASH conference this week. However, management will participate in Virtual Investor Conference’s Life Science event on Thursday. CEO Bart Bandy and CFO Tom Stankovich will present starting at 2 PM ET on December 16th.

Penny Stocks To Buy [Or Avoid] This Week

A lot is going on this week. Whether it’s industry conferences, investor presentations, or pending data read-outs, this could be a busy week for penny stocks, in general. These are only a handful of names with pending updates and potential catalysts. All the same, knowing what could be coming can help you to understand specific trends in the stock market better. Comment below. Will any of these be on your list of penny stocks to watch this week?

Penny Stocks To Watch This Week

1. Alzamend Neuro (NASDAQ: ALZN)
2. X4 Pharmaceuticals (NASDAQ: XFOR)
3. Mustang Bio (NASDAQ: MBIO)
4. Cellectar Biosciences (NASDAQ: CLRB)
5. ReShape Lifesciences (NASDAQ: RSLS)

If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!

https://www.entrepreneur.com/article/402250

The Federal Reserve is accelerating its monetary tightening policies with inflation officially no longer ‘transitory,’ following Fed Chair Jerome Powell’s retirement of the term in regards to inflation in his Congressional testimony the first week of December. Yet, the US 10-Year yield is being held under 1.5%, when it should be trading much closer to 2%.

– Zacks

This is almost certainly due to a supply and demand imbalance in Treasuries as global investors rush to the safety of this “risk-free” bond as equities look shaky.

As the Fed pares back its $80 billion in monthly US Treasury purchases (making up roughly 50% of this market), a rare option trade with massive upside potential is manifesting itself. I’m looking at a 6-month put option trade that is ripe for the picking in iShares 7-10 Year T-Bond ETF IEF.

The Catalyst

The market’s preferred inflation gauge, the Consumer Price Index, just revealed the most significant annualized inflation jump since 1982 when Paul Volcker, the man who ended stagflation, headed up the Federal Reserve. In 1980, after several failed attempts to contain wild price jumps, Volcker was forced to ‘shock’ the market with a record high Fed Funds rate to control the US economy’s persistent inflation (known as the Volker shock).

Today, the Fed Funds rate sits at a record low, and investors are now worried that current Fed Chair Jerome Powell will be forced to implement a similar rate shock therapy to control swelling pricing pressures.

The focus will now be on the Fed meeting next week (December 14-15). Investors are anticipating it will conclude with an accelerated asset tapering program, putting the timeline to liftoff closer at hand. The Fed’s May meeting is the current consensus projection for the first Fed Funds rate-hike (aka liftoff), and the odds of at least 3 hikes (75 basis points) by the end of 2022 stand at nearly 70% and continues to rise.

The US 10-Year yield is poised to take off, and long-dated options are the perfect way to take advantage of this move.

The Trade

I am looking at a IEF June 17, 2022, put option with a $114 strike for $1.75 ($1.75 x 100 shares per contract = $175 per contract). I am utilizing puts on this ETF because bond prices are inversely correlated with yields. I chose that expiration because it allows us for the Fed’s May and June policy decisions to be priced into Treasuries before the put contract expires. The $114 strike we are using is just out of the money, has an exceptionally low implied volatility (IV) of 7%, and is comparatively more liquid than other contracts at this specific expiration (better volumes, relatively tight bid-ask, and decent open interest).

This long-term options trade is a no-brainer in this rising rate environment (almost too good to be true). Short interest in IEF is growing as investors see the potential profits in betting against Treasury bond prices, with inflation reaching a 39-year high in November.

I would enter this trade ASAP and look to exit once the 10-Year yield reaches 2%, which would generate a 130% return under the assumption that the 10-Year yield doesn’t get to 2% until June (which I see as extremely unlikely). In realty, the returns will likely be much higher because I presume that the IV of the option will rise as rates do, and the 10-Year will reach 2% prior to expiration, all having enriching implications on this put option’s premium (and in turn the returns).

Happy Trading!

Dan

Equity Strategist at Zacks Investment Research & editor of the Headline Trader Portfolio

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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
 
iShares 710 Year Treasury Bond ETF (IEF): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/402179

Wall Street is steadily rebounding from the omicron-led setback, with all three major indices in the green for the third straight day on Dec 8. The Dow Jones Industrial Average rose 0.1% on the day. Moreover, the S&P 500 and the Nasdaq Composite indices were up 0.3% and 0.6%, respectively, on Dec 8. The upside was primarily driven by optimism from easing worries regarding the severity of the omicron variant and the Federal Reserve increasing the pace of tapering.

– Zacks

Pfizer Inc. PFE and BioNTech SE (BNTX) have also provided support in easing out worries. Going by their preliminary lab tests, the companies have claimed that three doses of their COVID-19 vaccine will efficiently neutralize the omicron variant. Completion of two doses can assist in providing protection against the disease getting severe and requirements for hospitalizations (per a CNBC article).

Updates from GlaxoSmithKline also uplifted market sentiments to a great extent. The company has announced that its monoclonal antibodies treatment is working efficiently against all strains of the omicron variant, according to the new data (as stated in a CNBC article).

Market optimism was also brought following positive comments from White House chief medical advisor Dr. Anthony Fauci on Dec 5. He addressed the initial data on the omicron variant to be “encouraging” (per a CNBC article). According to the same article, Fauci has said that “Clearly, in South Africa, omicron has a transmission advantage. Although it’s too early to make any definitive statements about it, thus far it does not look like there’s a great degree of severity to it.”

Commenting on the market, Bank of America has mentioned that “The range of possibilities is still wide, but in the bigger picture, we think the odds are still very much in favor of the pandemic phase winding down. In our view, COVID is here to stay, but a shift to the endemic phase is approaching where infections are common but severe outcomes / lockdowns / travel restrictions are not,” as stated in a CNBC article.

Why Consider Reopening Trade?

The improved market sentiments have led to greater attention and confidence in reopening trades. The increasing cases had spooked investors regarding the economic recovery achieved so far and stricter lockdown measures to combat the new variant.

However, the higher probabilities of the omicron variant being mild is stimulating rally in the reopening bets like the travel and tourism sectors, the entertainment and leisure spaces, airline and energy stocks. Norwegian Cruise Line surged 8.2%, becoming the biggest gainer in the S&P 500. It was followed by Carnival and Royal Caribbean, which rose more than 5%, respectively, on Dec 8. United Airlines and Las Vegas Sands were also up more than 4% on the trading day.

ETFs to Ride the Reopening Optimism

Against this backdrop, let’s look at the following ETFs that are well-poised to gain as the recovering U.S. economy from the pandemic lows:

Vanguard Energy ETF VDE

Vanguard Energy ETF seeks to track the performance of the MSCI US Investable Market Energy 25/50 Index. With AUM of $6.08 billion, the fund charges 10 basis points (bps) in fees (read: Will Thanksgiving Help Oil & Energy ETFs Despite Covid Fears?).

Fidelity MSCI Consumer Discretionary Index ETF FDIS

Fidelity MSCI Consumer Discretionary Index ETF intends to provide investment results that before expenses generally correspond with the price and yield performance of the MSCI USA IMI Consumer Discretionary Index. It charges investors 8 bps in annual fees as stated in the prospectus (read: Why Reopening-Friendly ETFs Can be Bought on the Dip?).

The Industrial Select Sector SPDR Fund XLI

The industrial sector, which faced disruption in global supply chains and factory closedowns, is expected to recover from the coronavirus-led slump. The reopening of the U.S. economy and accelerated coronavirus vaccine rollout are expected to drive demand and economic activities in the sector. The Industrial Select Sector SPDR Fund seeks to provide investment results that before expenses generally correspond to the price and yield performance of the Industrial Select Sector Index. It has an expense ratio of 12 bps (read: Fed Plans QE Taper: Time for Cyclical Sector ETFs?).

Vanguard S&P Small-Cap 600 ETF VIOO

Small-cap stocks, as indicated by the Russell 2000 Index, have been performing impressively. This upside is being led mainly by small-cap companies closely tied to the U.S. economy and thus are well-positioned to outperform when the economy improves. VIOO seeks to track the performance of the S&P Small-Cap 600 Index. It has an expense ratio of 0.10% (read: 5 Sector ETFs To Win Despite Weak November Jobs Data).

U.S. Global Jets ETF JETS

Studying the carriers’ stressed balance sheets, it is safe to say that the space is likely to get massive support from the reopening of the U.S. economy. JETS provides investors access to the global airline industry, including airline operators and manufacturers worldwide. U.S. Global Jets ETF has an expense ratio of 0.60% (read: Travel ETFs Fly High as Omicron Fears Ease).

ETFMG Travel Tech ETF AWAY

ETFMG Travel Tech ETF is the first ETF to focus on technology-focused global travel and tourism companies. It charges an expense ratio of 0.75% (read: ETF Areas to Gain/Lose on Fear of Omicron Strain of Coronavirus).

Invesco Dynamic Leisure and Entertainment ETF PEJ

This fund tracks the Dynamic Leisure & Entertainment Intellidex Index and holds a small basket of 31 stocks. PEJ charges 55 bps in annual fees.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

Get it free >>

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
 
Pfizer Inc. (PFE): Free Stock Analysis Report
 
ETFMG Travel Tech ETF (AWAY): ETF Research Reports
 
Industrial Select Sector SPDR ETF (XLI): ETF Research Reports
 
Vanguard Energy ETF (VDE): ETF Research Reports
 
U.S. Global Jets ETF (JETS): ETF Research Reports
 
Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports
 
Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports
 
Vanguard S&P SmallCap 600 ETF (VIOO): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

https://www.entrepreneur.com/article/401826

Trump Penny Stocks To Watch Right Now

The debut of former President Donald Trump’s Truth Social media platform has caused a stir in the stock market today. Once again, news headlines have sparked a surge in companies with any type of exposure to the alternative social media company. While investors remain focused on big picture stocks like this, others hunt for cheap penny stocks that might have something to do with the former U.S. President.

PennyStocks.com – PennyStocks

This has been a phenomenon since the SPAC market woke up thanks to the newest Facebook competitor. What’s more, the company is back in the spotlight this week thanks to news that it would raise $1 billion through a PIPE transaction.

Former President Donald Trump, also chairman of Trump Media, explained that “$1 billion sends an important message to Big Tech that censorship and political discrimination must end. America is ready for TRUTH Social, a platform that will not discriminate on the basis of political ideology. As our balance sheet expands, TMTG will be in a stronger position to fight back against the tyranny of Big Tech.”

It is trends like this, which have given rise to the strength of retail traders. Though “Trump stocks” are one of the underlying themes, look on popular social media platforms like Reddit and Twitter. You’ll see many “investor round tables” discussing numerous penny stocks. Remember, however, even though these cheap stocks can be bought for under $5 (as the title says), it’s up to you to decide if they’re worth the risk.

Reddit Penny Stocks To Watch

1. Datchat Inc. (NASDAQ: DATS)
2. Phunware Inc. (NASDAQ: PHUN)
3. Paysafe Ltd. (NYSE: PSFE)
4. Virpax Pharma Inc. (NASDAQ: VRPX)

Datchat Inc. (NASDAQ: DATS)

Shares of DATS stock are no stranger to huge moves. Following its IPO, we discussed the company in more detail (See: Penny stocks to watch as tech tries to rebound). Since Day 2 of its public action, DatChat has managed to turn heads for its technology platform centered around privacy and security. DatChat folds blockchain, cybersecurity, and social media into a single platform. Users can delete messages and posts and protect themselves from anyone taking a screenshot of them before getting deleted.

With a focus on things like former President Trump’s alternative social media platform, other companies like DatChat have found a place in the eyes of traders. In particular, its private social media platform has become a point of interest for the DeFi community. CEO Darin Myman said in a recent update that the DatChat platform could play an important role for both DeFi and NFT’s.

– 3 ‘Must Watch’ Penny Stocks For Your Year End Watchlist

Looking ahead, the proposed launch of DatChat Blockchain could attract some interest. The company discussed its plans on exploring a proof of participation and a potential proof of stake opportunity for holders of its NRD Points, converted into tokens. When or if launched, all of this will be accessible within the DatChat platform according to the company.

Phunware Inc. (NASDAQ: PHUN)

With a more direct tie-in to the trend in “Trump Stocks,” Phunware has been in the spotlight several times since the launch of the Trump SPAC. The company specializes in enterprise cloud technology for mobile platforms. A few of the things that have caught some attention lately deal more with Phunware’s involvement in the cryptocurrency space than anything else (however, there is a Trump angle, and I’ll explain).

Over the last few months, Phunware has focused on launching its PhunCoin cryptocurrency. Last month this finally came to fruition, and PhunCoin became available for trading on the Securitize platform. This is a blockchain-enabled transfer agent registered in the U.S. Its PhunWallet manages the coins. Obviously, with the recent drop in crypto prices, the digital asset angle might be questioned right now as PHUN stock surges.

In this case, it’s important to mention that Phunware’s endeavors have also given it exposure to Trump-related business. News from 2020 helped re-spark attention on the penny stock. Punware reported a partnership with American Made Media Consultants to develop, launch, and ongoing management of the Trump-Pence 2020 Reelection Campaign’s mobile application portfolio for Apple iOS and Google Android smartphones. Thanks to this, PHUN has remained a focus whenever Trump stocks move.

Paysafe Ltd. (NYSE: PSFE)

This month, Paysafe is getting acclimated to its current price levels as somewhat of a new penny stock. I say this because PSFE stock has generally traded above $7 since its public debut. However, after discussing cutting its sales guidance in its latest quarterly update, PSFE took a dive. In particular, the company said it expects 2021 sales to come in at a range of $1.47 billion to $1.48 billion. It previously set expectations to a range of $1.53 billion to $1.55 billion. Meanwhile, analysts were expecting the same based on prior guidance. This misstep saw shares slide as low as $3.18 over the last few weeks.

Paysafe offers payment processing solutions, digital wallets, and online cash solutions for its clients. Philip McHugh, CEO of Paysafe, explained that softer revenue during Q3 reflected market and performance challenges in the digital wallet business. However, he also explained, “While the recent trend will drive an adjusted financial outlook, we continue to see strong momentum across the business. Our position to win in high growth and disruptive markets including online sports betting and crypto continues to accelerate.”

This week, the focus is on insider sentiment. Even after this significant drop during Q4, it appears that the CEO is doubling down on his stance. He, other executives, and directors purchased roughly $2.8 million worth of stock.

Virpax Pharma Inc. (NASDAQ: VRPX)

Shares of Virpax have been trending sideways over the last few weeks. However, an uptick in activity on Wednesday has turned some attention to the penny stock. Following an open of $4 on December 8, VRPX stock jumped to early highs over $4.60. The company specializes in pain management product development and candidates for central nervous system disorders and anti-viral indications.

This week Virpax came out with news that seems to have resonated with the market. The company reported upbeat results following the completion of toxicology and pharmacokinetic studies designed to support clinical trials with Epoladerm™. This is one of its lead investigational product candidates for managing pain associated with osteoarthritis of the knee.

In light of these results, it’s also important to note that Virpax is seeking FDA approval of Epoladerm™ as well as two other patented drug delivery platforms. For instance, Probudur™ is its liposomal bupivacaine formulation in development for managing post-operative pain. Envelta™ is a product being developed for managing acute and chronic pain, including pain associated with cancer and post-traumatic stress disorder. In response to the latest Epoladerm, Anthony P. Mack, Chairman and CEO of Virpax. commented, “This is an important step in the development of Epoladerm and further prepares us for expected clinical trials.”

– Hot Metaverse Penny Stocks To Add To Your List In December 2021

Are Penny Stocks Worth It?

Penny stocks are highly volatile, very risky, and many times misunderstood. However, if you like opportunities to make money quickly, taking time to learn how to buy and trade these cheap stocks can be well worth it with the proper strategy in mind.

https://www.entrepreneur.com/article/401547

Global economic uncertainty, inflationary pressure, a disappointing jobs report, and concerns around the COVID-19 omicron variant are fostering stock market volatility. So, against this backdrop, we think it would be wise to bet on low-beta stocks Regeneron (REGN), ResMed (RMD), Ericsson (ERIC), and Canon (CAJ). We think they could provide stable returns in the current environment. Read on to learn more.

shutterstock.com – StockNews

Last week, the equity market experienced a roller-coaster ride due to fears about the rapidly spreading COVID-19 omicron variant, lower-than-expected November jobs data, and uncertainties over the timing of monetary policy tightening. The major benchmark indexes ended the week with losses of 1% or more.

Last week, the IMF suggested ways to address inflationary pressure and uncertainties around global economic prospects. And with a new coronavirus strain rapidly spreading across the country, analysts are concerned about the pace of domestic economic recovery. So, the situation might drive higher market volatility in the coming weeks.

Amid these rising uncertainties, building a portfolio of low-beta stocks is important because these securities will generate steady returns and protect against choppy market conditions. So, we think low beta stocks Regeneron Pharmaceuticals, Inc. (REGN), ResMed Inc. (RMD), Telefonaktiebolaget LM Ericsson (publ) (ERIC), and Canon Inc. (CAJ), each with strong financials and solid growth attributes, could be ideal picks now.

Regeneron Pharmaceuticals, Inc. (REGN)

Tarrytown, N.Y.-based REGN is a biotechnology company that invents life-transforming medicines for patients with eye diseases, cancer, cardiovascular and metabolic diseases, hematologic diseases, infectious diseases, and rare diseases. EYLEA Injection, Dupixent Injection, Kevzara Solution, and ARCALYST Injection are some of the company’s marketed products. The stock has a 0.18 beta.

Last month, the European Commission had approved REGN’s REGEN-COV, the casirivimab, and imdevimab antibody cocktail, in the U.S., and Ronapreve in the European Union (EU) and other countries. Through this approval, the company believes that the countries should be able to adapt the cocktail as a therapy against COVID-19 to treat non-hospitalized patients already infected with the virus and to prevent infection in the first place.

REGN’s total revenues increased 50.5% year-over-year to $3.45 billion in the third quarter, ended September 30, 2021. The company’s income from operations grew 75.4% from its year-ago value to $1.85 billion. Its net income rose 84.5% from the prior-year quarter to $1.77 billion. Also, the company’s EPS increased 83.9% year-over-year to $15.37.

Analysts expect REGN’s revenue for its fiscal 2021 to be $15.44 billion, representing an 81.7% increase year-over-year. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Also, its EPS is expected to grow 124.7% in the current year. Its stock price has increased 37.6% over the past nine months.

REGN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

Also, the stock has a B grade for Value, Quality, and Growth. We have also graded REGN for Sentiment, Stability, and Momentum. Click here to access all REGN’s ratings. REGN is ranked #7 of 472 stocks in the Biotech industry.

Click here to checkout our Healthcare Sector Report for 2021

ResMed Inc. (RMD)

RMD in San Diego, Calif., provides innovative solutions to treat hospital outpatients. The company offers cloud-connected medical devices to people with sleep apnea, COPD, and other chronic diseases. Its comprehensive out-of-hospital software platforms also support professionals and caregivers. RMD operates healthcare systems in more than 140 countries. RMD has a 0.31 beta.

In August, RMD launched AirSense 11, the company’s next-generation PAP (positive airway pressure). This device has been designed to help people worldwide with sleep apnea start and stay on therapy to treat and manage obstructive sleep apnea.

During its fiscal first quarter, ended September 30, 2021, RMD’s revenue increased 20.2% year-over-year to $904 million. The company’s income from operations grew 20.7% from its  year-ago value to $261.9 million. Its net income rose 19.7% from the prior-year quarter to $222 million. Also, the company’s EPS increased 18.9% year-over-year to $1.51.

RMD’s revenue is expected to increase 19.2% year-over-year to $3.81 billion in its fiscal 2022. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Also, its EPS is expected to increase 18.6% in the current year. The stock has gained 43.7% in price over the past nine months.

RMD’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. Also, the stock has a B grade for Growth, Stability, and Sentiment.

In addition to the POWR Rating grades I’ve just highlighted, one can see RMD’s ratings for Momentum, Value, and Quality here. The stock is ranked #33 of 171 stocks in the Medical – Devices & Equipment industry.

Click here to checkout our Healthcare Sector Report for 2021

Telefonaktiebolaget LM Ericsson (publ) (ERIC)

Headquartered in Stockholm, Sweden, ERIC offers communication infrastructure, services, and software solutions to telecommunications and other industries. It operates through four segments: Networks; Digital Services; Managed Services; and Emerging Business and Other. The stock has a 0.11 beta.

This month, ERIC partnered with Nex-Tech Wireless to commercially launch Nex-Tech Wireless’s 5G capabilities in rural Kansas. The 5G capabilities should bring customers faster speeds, including lower latency and more capacity.

ERIC’s net income increased 3.6% year-over-year to SEK5.8 billion ($637.12 million) for the third quarter, ended September 30, 2021. The company’s net sales were SEK56.3 billion ($6.18 billion) during the period. Its EBIT grew 2.3% from its year-ago value to SEK8.8 billion ($966.66 million). Also, the company’s EPS rose 7.5% from the prior-year quarter to SEK1.73 ($0.19).

ERIC’s revenue for its fiscal 2021 is expected to be $26.52 billion, representing 5% year-over-year growth. Its EPS is expected to increase at an  11.1% rate in the current year. The stock has surged 1.6% in price over the past five trading days.

It is no surprise that ERIC has an overall B rating, which equates to a Buy in our POWR Rating system. Also, the stock has an A grade for Value and a B grade for Stability.

Click here to see the additional POWR Ratings for ERIC (Growth, Momentum, Quality, and Sentiment). ERIC is ranked #9 of 55 stocks in the Technology – Communication/Networking industry.

Canon Inc. (CAJ)

Headquartered in Tokyo, Japan, CAJ provides digital imaging solutions, plain paper copying machines, laser and inkjet printers, cameras, and lithography equipment. Its Office Business Unit; Imaging System Business Unit; Medical System Business Unit; and Industry and Others Business Unit are the company’s four operations. CAJ has a 0.56 beta.

This month, CAJ launched its  CR-X300 4K Outdoor PTZ (pan-tilt-zoom) camera. The CR-X300 should support a wide range of communications standards and protect from environmental factors. It is an ideal remote PTZ camera system for video capture in outdoor settings like sports broadcasts, live events, and wild animal observation.

CAJ’s net sales increased 9.8% year-over-year to ¥833.32 billion ($7.34 billion) for the third quarter, ended September 30, 2021. The company’s operating profit grew 206% from its year-ago value to ¥58.73 billion ($516.94 million). Its net income rose 196.1% from the prior-year quarter to ¥49.32 billion ($434.1 million). Also, the company’s EPS increased 196% year-over-year to ¥47.15 ($0.42).

Analysts expect CAJ’s revenue for its fiscal 2021 to be $31.73 billion, representing 7.2% growth year-over-year. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Also, its EPS is expected to grow 139.2% in the current year. Its stock price has increased 23.3% over the past year and 19.9% year-to-date.

CAJ’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. Also, the stock has a B grade for Quality, Value, and Stability.

In addition to the POWR Rating grades I have just highlighted, one can see CAJ’s ratings for Growth, Sentiment, and Momentum here. CAJ is ranked #4 of 52 stocks in the B-rated Technology – Hardware industry.

REGN shares were trading at $641.56 per share on Wednesday afternoon, up $6.47 (+1.02%). Year-to-date, REGN has gained 32.80%, versus a 26.43% rise in the benchmark S&P 500 index during the same period.

About the Author: Priyanka Mandal

Priyanka is a passionate investment analyst and financial journalist. After earning a master’s degree in economics, her interest in financial markets motivated her to begin her career in investment research.

More…

The post 4 Low-Beta Stocks to Buy for a Volatile Market appeared first on StockNews.com

https://www.entrepreneur.com/article/401548