Nice Relief Rally on Biotech Assurances, Home Sales Data

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks

Three out of the four major stock market indexes closed higher Monday — a quick relief rally filling in gaps from Friday’s 2%+ sell-off. The Dow crossed back north of 35K, +236 points or +0.68%. The S&P 500 put up its best trading day in six weeks, +1.32%, while the Nasdaq won the day, +1.88% or +291 points. Only the small-cap Russell 2000 was down slightly, -0.18%.
With assurances from Moderna MRNA that the new Omicron variant of Covid-19 would be met with a vaccine early next year, this sent shares of the Cambridge, MA biotech up nearly +12% on the day. (On the flip side, Novavax NVAX lost -11% Monday on a vaccine setback reported in India today.) But the Moderna news provided a nice backstop for investors not only concerned about the highly contagious Omicron variant, but unsure how widespread the economic damage might reach, as of last Friday.
Pending Home Sales for October were released this morning after the opening bell, with a big surprise to the upside: +7.5% was well ahead of the +0.7% analysts were expecting, and nearly +10% from the previous month’s -2.4%. This, even as the average rate on a 30-year fixed mortgage rose from sub-3% to 3.22% by late October. Overall, sales were -1.4% off the pace of the same month a year ago, but pre-closed housing sales looks alive and well in late 2021.
In fact, 2021 is shaping up to be the best year in U.S. home sales since 2005, at 6+ million. As we’ve seen in other housing data of late, the Midwest was the hottest region, +11.8% month over month, followed by the South at +8.0% and the Northeast at +6.9%. The West — generally the hottest housing market over the last couple years — was still positive last month, +2.1% month over month.
One development we see in pending home sales of late is a real lack of supply, now sitting at 2.4 months. Total housing inventory among already-owned houses has dropped -12% year over year; it would seem part of what’s affecting things in this space is the lack of interest in selling among current homeowners. We also are approaching winter months, where seasonal drawbacks in the Midwest and Northeast cool homebuying until the spring.
Tomorrow morning brings us Case-Shiller Home Price Index data for the month of September. Home prices have shifted into a higher gear since the Covid-19 pandemic took hold in March of 2020, and the last month reported showed a healthy +19.7% growth month over month. We’ve not seen one down month in this long cycle, although September did represent softness in many other economic metrics already reported.
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– Zacks

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 >>

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Moderna, Inc. (MRNA): Free Stock Analysis Report

Novavax, Inc. (NVAX): Free Stock Analysis Report

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https://www.entrepreneur.com/article/399723

Fidelity (FIS) Likely to Sell Its Capital-Markets Business

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks

Fidelity National Information Services FIS is reportedly in talks with Symphony Technology Group to vend its capital-markets business. According to people familiar with the matter, the deal could be valued at nearly $2 billion.

– Zacks

Per a person knowledgeable about the matter, the technology-centered private equity firm Symphony may announce the purchase of the assets as soon as next week. The assets will likely include Fidelity’s treasury management, alternative-trading and algorithm-based trading platforms.

Founded in 2002, Symphony invests in data analytics, software and software-enabled technology services companies.

Jacksonville, FL-based Fidelity provides banking and payments technology solutions, processing services and information-based services to the financial services industry. Fidelity prioritizes long-term growth via its ongoing investments in technology and innovation across the high-growth markets to expand its total addressable market.

Given that the deal is being valued at around $2 billion, the sale is likely to boost Fidelity’s liquidity profile, offering it opportunities to focus on its core operations. In fact, as of Sep 30, 2021, Fidelity had total debt of $19.8 billion.

The debt level has been volatile over the past few quarters. Its cash and cash equivalents of $1.4 billion as of the same date have declined from around $2 billion since the end of 2020. The deal is also likely to enable Fidelity to reduce its foreign exchange volatility exposure with respect to its capital-markets business.

The capital market business, which is focused on serving global financial services clients with a broad spectrum of buy- and sell-side solutions, generates significant recurring revenues for Fidelity. For the three months ended Sep 30, its capital markets’ recurring revenues were majorly driven by sound sales, boosting outsourced solutions and services.

Moreover, the segment’s adjusted EBITDA margin rose primarily on higher-margin revenue mix and continued cost management by Fidelity. Thus, sale of the segment might induce a loss of revenues and unfavorably impact Fidelity’s financials in the near term.

Shares of Fidelity have lost 26.3% over the past six months compared with the 24.2% fall of its industry.

Image Source: Zacks Investment Research

Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Firms Boosting Inorganic Growth

Several companies from the finance sector are making consolidation efforts to counter the low-interest rate environment and higher costs of investments in technology.

Recently, Citizens Financial Group, Inc. CFG completed its previously announced merger with JMP Group LLC. Citizens Financial announced the all-cash deal in September to augment its capital-market capabilities.

The buyout is expected to foster growth, diversify Citizens Financial’s capital-market platform and provide a grander scale in the key verticals of healthcare, technology, financials and real estate.

Similarly, last month, in order to further diversify its deposit-gathering capabilities and revenue mix, Raymond James RJF announced a cash-cum-stock deal to acquire TriState Capital Holdings, Inc. TSC for $1.1 billion.

The transaction is still subject to approvals from the regulators and TriState Capital shareholders. Paul Reilly, chairman and CEO, Raymond James, said, “Importantly, this acquisition further illustrates our commitment to utilize excess capital through organic and inorganic growth that we expect to drive strong returns for shareholders over the long term.”

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.

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

Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report

Raymond James Financial, Inc. (RJF): Free Stock Analysis Report

Citizens Financial Group, Inc. (CFG): Free Stock Analysis Report

TriState Capital Holdings, Inc. (TSC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

https://www.entrepreneur.com/article/399724

Cowen (COWN) Buyout of Portico Capital to Boost M&A Revenues

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks

To bolster its investment-banking business, Cowen Inc. COWN has agreed to acquire Portico Capital Advisors, a mergers-and-acquisition (M&A) advisory firm, focused on the verticalized software, data and analytics sector. The definitive agreement was approved by Cowen’s board of directors as well as Portico Capital’s shareholders and governing bodies.

– Zacks

The deal’s consideration will comprise 75% cash and 25% stock. Other terms of the deal, expected to close in the fourth quarter of 2021, were not disclosed.

Apart from shoring up Cowen’s investment banking operations, the acquisition will garner the company’s boosted capital markets, advisory and research capabilities to its clients. Cowen expects its M&A advisory revenues to shoot up nearly 20% in fiscal 2022.

In fact, revenues of its investment-banking business have surged more than four-fold since 2017, courtesy of huge growth in its M&A and Capital Markets Advisory practices. Hence, the acquisition of Portico Capital will also create room for further revenue growth.

Via this deal, Cowen can also leverage Portico Capital’s deep-sector proficiency, sell-side focus and its track record in advising blue-chip companies and private equity firms.

New York-based Portico Capital keys in on the verticalized software, data and analytics market“a critically important, fast-growing, and dynamic sector that will underpin the global economy in the decades ahead.” said the co-president of Cowen, Larry Wieseneck.

Portico Capital’s founder and executive chairman Rick Northrop said, “For two decades, the Portico team has focused on leveraging our deep sector expertise and relationships to deliver value for our clients through focus, experience, and guidance at every step of a transaction. We are delighted to enhance our ability to deliver high-quality value to clients on the Cowen platform.”

Conclusion

Cowen’s cash and cash equivalents stood at $1.05 billion while its net liquid investment assets totaled $1.2 billion as of Sep 30, 2021. Hence, a sound liquidity profile enables the company to pursue fruitful acquisitions. Moreover, Cowen’s deal to acquire the M&A advisory firm comes during a lucrative phase in dealmaking when low-interest rates and mammoth corporate cash made acquisitions immensely enthralling.

Shares of Cowen have lost 2.3% over the past six months as against 3.7% growth recorded by the industry.

Image Source: Zacks Investment Research

Currently, the stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Stocks Taking Similar Steps

The financial sector witnessed a surge in deals as banks are making bolt-on acquisitions to abate costs and augment technologies.

Earlier this month, Citizens Financial Group, Inc. CFG completed its previously announced merger agreement to acquire JMP Group LLC. Citizens Financial had announced the all-cash deal in September to augment its capital-market capabilities.

Similarly, last month, with an aim to further diversify its deposit-gathering capabilities and revenue mix, Raymond James RJF announced a cash-cum-stock deal to acquire TriState Capital Holdings, Inc. TSC for $1.1 billion.

The transaction is still subject to approvals from the regulators and TriState Capital shareholders. Paul Reilly, chairman and CEO, Raymond James had said, “Importantly, this acquisition further illustrates our commitment to utilizing excess capital through organic and inorganic growth that we expect to drive strong returns for shareholders over the long term.”

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.

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

Cowen Group, Inc. (COWN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

https://www.entrepreneur.com/article/399725

Buy These 2 Stocks Before December Earnings?

Stocks bounced back on Monday following Friday’s big Omicron variant-focused selloff. The quick pullback was driven by real fears and lower holiday volume. Investors began pouring back into the markets to start the week as Wall Street appeared to determine that the new covid strain likely won’t have as significant of an impact as initially feared.

– Zacks

Covid and new strains are likely here to stay and investors and consumers have largely proven they are willing to focus on signs of progress in favor of fears. It is also worth constantly remembering that selling is a healthy aspect of all well-functioning markets, especially one that’s soared for over a year and a half.

Looking back, investors helped wash away all of the losses from the September and early October downturn in a matter of weeks. And the bulls appear to be in control, at least for now, with the S&P 500 and the Nasdaq both trading well above their 50-day moving averages despite Friday’s big drops.

There could certainly be more selling and profit-taking in December. Luckily, the positive backdrop for stocks remains in place even in the face of continued supply chain bottlenecks, rising prices, and difficulty filling millions of open jobs.

First off, interest rates will remain historically low for the foreseeable future no matter when the Fed starts to lift its core rate. Secondly, the S&P 500 earnings picture remains strong. And U.S. consumer spending was solid in October, which is a great sign for the entire pivotal holiday shopping period.

With this in mind, investors likely want to remain on the hunt for strong stocks as we enter the final month of 2021. Here are two modern retail stocks that investors might want to consider buying…

Image Source: Zacks Investment Research

Lululemon LULU– (Q3 Financial Results Due Out Thursday, December 9)

Lululemon has transformed from a small high-end yoga clothing maker 20 years ago into a global apparel powerhouse. The company currently sells an array of athletic apparel for women and men, alongside clothing that can be worn to work, dates, the golf course, and beyond. LULU has also rolled out self-care items, more outwear such as coats, and other accessory-style products.

The athletic retailer expanded beyond clothing and apparel last year when it bought digital-focused at-home fitness company Mirror. The purchase has already outperformed LULU’s expectations and it’s adding additional live and on-demand digital workout content and putting more Mirror ‘shop-in-shops’ within Lululemon locations—200 excepted by the holiday season.

Lululemon closed last quarter with 534 total company-operated stores, up from 506 in the prior-year period. LULU is focused on expanding in Asia and Europe, while continuing to improve its digital offerings. The company topped our Q2 estimates and raised its guidance, with e-commerce accounting for 42% of revenue.

Image Source: Zacks Investment Research

Looking ahead, Zacks estimates call for fiscal 2021 revenue to surge 42% to $6.26 billion, with FY22 projected to come in another 17% higher to hit $7.33 billion. This growth, which is driven in part by Mirror, follows 11% top-line expansion last year and FY19’s 21%. Meanwhile, its adjusted earnings are projected to soar 60% and 21%, respectively during this stretch.

Lululemon has beaten our EPS estimates by an average of 25% in the trailing four periods, including a 36% beat last quarter. The company’s consensus earnings estimates have climbed recently and its Most Accurate estimates (or the newest) are higher. This bottom-line positivity helps LULU land a Zacks Rank #2 (Buy) right now.

Plus, 15 of the 21 broker recommendations we have for Lululemon are “Strong Buys,” with none below a “Hold.” The athleisure firm also boasts a strong balance sheet and its Textile-Apparel space sits in the top 20% of over 250 Zacks industries.

LULU hit records in mid-November, with shares up 45% in the last six months. This run helped end an up-and-down stretch that saw the stock move roughly sideways for nearly a year. Longer-term, Lululemon stock has skyrocketed over 700% in the last five years to crush its industry’s 75% and the S&P 500’s 120%.

Despite sitting near its records, LULU trades at a 20% discount against its own year-long highs in terms of forward earnings and sales. And the recent market pullback has it near neutral RSI levels at 56, which could give it room to run if it’s able to impress Wall Street next week.

Chewy CHWY – (Q3 Financial Results Due Out Thursday, December 9)

Chewy is an e-commerce pet store that went public in 2019. The company has expanded rapidly as consumers gravitate toward convenience in the form of delivery and beyond. CHWY sells pet food, supplies, treats, medications, and more for a variety of animals. Chewy has found success by adding loyal pet owners to its ranks, with roughly 70% of sales coming from its Autoship business that allows people to have food and more delivered at regular intervals.

Chewy posted a banner year in 2020 on the back of the pandemic. The firm added 43% more users in 2020 to close the year with 19.2 million. The company, which has been in business for over a decade, has also moved far beyond food and toys. Its offerings include a telehealth service called Connect with a Vet and a beefed-up pet pharmacy platform.

Unfortunately for Chewy, the near-perfect backdrop to succeed in business and on Wall Street is over as people return to their normal lives. The firm fell short of revenue estimates last quarter—which it rarely does—and it reported a larger-than-projected quarterly loss. Chewy did close Q2 with 20.1 million customers, up 21% from the year-ago quarter and its revenue climbed 27%. But Wall Street has continued to dump the stock amid rising costs and slowing growth.

Image Source: Zacks Investment Research

Zacks estimates call for CHWY’s FY21 revenue to climb 25% to $8.95 billion and then pop 19% higher in 2022. These estimates would follow a 47% climb last year and 37% expansion in FY19. Meanwhile, its adjusted earnings are projected to slip 11% this year to $0.08 a share, with its FY22 figure expected to skyrocket 320% to $0.33 a share.

Chewy’s overall consensus earnings estimates have trended lower since its last report to help it grab a Zacks Rank #3 (Hold) at the moment. And it’s part of a group that’s in the bottom 11% of all Zacks industries. That said, nine of the 15 brokerage recommendations Zacks has are “Strong Buys” and it operates a business that isn’t going out of style anytime soon, even though its days of huge 40% growth might be over.

CHEWY shares dipped on Monday as the market climbed and it has now fallen over 20% this year, including a 23% drop since its Q2 release. Taking a step back, Chewy is still up 190% in the last two years and its current Zacks consensus price target of $98.33 a share represents 45% upside to Monday’s levels.

The pullback has Chewy trading at over a 50% discount to its own year-long highs at 2.8X forward 12-month sales. And the nearby chart shows CHWY attempting to return to its 50-day moving average. That said, some investors might want to wait for more signs of a comeback, especially given that Wall Street is currently betting somewhat heavily against the stock—short interest at roughly 20% of the float.

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.

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

lululemon athletica inc. (LULU): Free Stock Analysis Report

Chewy (CHWY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

https://www.entrepreneur.com/article/399726

Casey’s General Stores (CASY) Gains But Lags Market: What You Should Know

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks

Casey’s General Stores (CASY) closed at $197.34 in the latest trading session, marking a +1.29% move from the prior day. The stock lagged the S&P 500’s daily gain of 1.32%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq lost 0.15%.

– Zacks

Coming into today, shares of the convenience store chain had gained 1.72% in the past month. In that same time, the Retail-Wholesale sector lost 0.46%, while the S&P 500 gained 3.61%.

Wall Street will be looking for positivity from Casey’s General Stores as it approaches its next earnings report date. This is expected to be December 7, 2021. In that report, analysts expect Casey’s General Stores to post earnings of $2.78 per share. This would mark a year-over-year decline of 7.33%. Our most recent consensus estimate is calling for quarterly revenue of $3.15 billion, up 42.05% from the year-ago period.

CASY’s full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $12.02 billion. These results would represent year-over-year changes of +3.58% and +38.05%, respectively.

Investors might also notice recent changes to analyst estimates for Casey’s General Stores. 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. 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. Casey’s General Stores is currently a Zacks Rank #2 (Buy).

Digging into valuation, Casey’s General Stores currently has a Forward P/E ratio of 22.46. Its industry sports an average Forward P/E of 20.11, so we one might conclude that Casey’s General Stores is trading at a premium comparatively.

The Retail – Convenience Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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.

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

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.

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

Casey’s General Stores, Inc. (CASY): Free Stock Analysis Report

To read this article on Zacks.com click here.

https://www.entrepreneur.com/article/399711

5 Reddit Penny Stocks To Watch This Week

Reddit Penny Stocks To Watch as November Comes to an End

With November almost over, plenty of penny stocks continue gaining momentum. Although it can be difficult to stumble upon the best penny stocks to buy, with a proper trading strategy, it can be much easier than previously imagined. In addition, one of the important steps that many traders fail to take is having a thorough understanding of their own trading strategy.

PennyStocks.com – PennyStocks

Things like knowing what your risk tolerance and setting proper price targets become even more important when it comes to investing in penny stocks. Obviously, getting the basics down is step one. The next is researching some stocks to add to your watch list. Using recent corporate filings, news, rumors, and yes, social media are all ways to find your initial watch list stocks. From there, look at each company’s specific news and potential catalysts to narrow your search. In this article, we take a look at five penny stocks to watch this week that gained some attention thanks to popular social media platforms like Reddit and Twitter.

5 Penny Stocks to Watch This Week

Vinco Ventures Inc. (NASDAQ: BBIG)
Sesen Bio Inc. (NASDAQ: SESN)
Farmmi Inc. (NASDAQ: FAMI)
Inspira Technologies (NASDAQ:IINN)
REE Automotive (NASDAQ:REE)

Vinco Ventures Inc. (NASDAQ: BBIG)

Vinco Ventures Inc. is a penny stock that has climbed by over 140% in the last YTD period despite a less than stellar trading pattern in the past few weeks. This is a penny stock that we have previously mentioned due to its consistent market momentum and constant trending nature. If you’re not familiar, Vinco is a distributor of digital media and content. It holds several subsidiaries such as ZASH Global Media and Entertainment as well as an 80% interest in Lomotif Private Limited. In the past year and a half, the demand for digital content has risen substantially as a result of more people being at home than ever before. And because of this, Vinco has continued to see heightened attention.

On November 1st, the company’s subsidiary Cryptyde announced the formation of a new joint venture. CW Machines LLC is the name of the company’s joint venture with Wattum Management. Wattum is a market leader in BTC mining equipment and services. The joint venture’s goal is to make Bitcoin mining equipment more accessible to consumers by incorporating smart contract technologies.

On November 22nd, the company announced its Q3 2021 financial results. In the results, the CEO of Vinco Ventures Lisa King, stated that “We are very pleased with our operational developments in the quarter, which included key building blocks of our strategy to create a global media and content platform.” As for the financial results, the company ended the quarter with a high cash balance of almost $150 million despite a decrease of 11% in its revenue. While the results were not ideal, we do have to consider the effects of the pandemic. Keeping this in mind, will BBIG stock make your watchlist in mid-November?

Penny_Stocks_to_Watch_Vinco_Ventures_Inc._(BBIG_Stock_Chart)

Sesen Bio Inc. (NASDAQ: SESN)

Sesen Bio Inc. is a biotech penny stock that develops targeted fusion protein treatments. The majority of its products are designed to help cancer sufferers. Its Vicinium product is now in Phase 3 clinical studies for the treatment of bladder cancer. The company is also developing Vicinium in collaboration with AstraZeneca’s checkpoint inhibitor to treat squamous cell carcinoma of the head and neck.

Sesen released its third-quarter 2021 results on November 8th. As of the conclusion of this quarter, it had $175.3 million in cash, cash equivalents, and restricted cash, compared to $55.4 million on December 31st, 2020. Year on year, the company’s R&D costs fell from $10.2 million to $5.2 million. This was due to cheaper costs connected with technology transfer and production, which were somewhat offset by higher licensing payments.

“Our team is making progress in advancing our dialogue with the FDA as we work toward potential resolution of the issues raised in the CRL for Vicineum, as demonstrated by our recent CMC Type A Meeting with the agency. We remain dedicated to saving and improving the lives of patients, and we look forward to continuing to work collaboratively with the FDA in our upcoming Clinical Type A Meeting, expected later this year, to carry our mission into the next stage of the regulatory process and beyond.”

President and CEO of Sesen Bio, Thomas Cannell

Although shares of SESN stock dropped substantially following a less than stellar meeting with the FDA back in August, they have since begun to rise. Whether this makes SESN a contender for your list of penny stocks to watch is up to you.

Farmmi Inc. (NASDAQ: FAMI)

Farmmi Inc. is an agriculture-based company that offers a variety of edible fungi. This includes shiitake mushrooms and other culinary mushrooms. In addition, it sells bamboo fungus, agrocybe aegerila, and a variety of other organisms. Its products are sold through its Farmmi Jicai online store as well as through traditional methods to restaurants, retailers, and distributors.

On November 15th, the company released a new update. It stated that its subsidiary, Zhejiang Farmmi Biotechnology Co. Ltd. won a new product order. This new order is for dried black fungus to be exported to Vancouver, Canada by the customer. The order is one of many recent export deals that Farmmi has earned in 2021 so far. Moving forward, it will be interesting to see if any more of these deals take place before the end of the year.

“We continue to execute on our multi-pronged growth strategy, as we leverage our brand, premium agriculture product line, and global supply chain relationships. We have benefited from steady growth in 2021 and expect year-over-year growth compared to 2020, with 2022 even better based on customer demand indications. At the same time, we remain focused on unlocking value as we help Farmmi realize its true potential.”

The CEO and Chairwoman of Farmmi, Ms. Yefang Zhang

Again, FAMI stock has not had the best performance in the past year. However, it is the subject of many Reddit forms and thus has seen high popularity several times in recent trading sessions. While this does make FAMI stock highly volatile, it could also make it worth keeping an eye on. Considering that, will it be on your penny stocks watchlist or not?

Inspira Technologies (NASDAQ:IINN)

Shares of Inspira Technologies experienced an explosive move closing out the week last week. IINN stock jumped from under $3 to over $4.50 during the final hour of trade as above-average volume pulled shares higher. As we know, one of the biggest catalysts last week was the new virus variant, which tore through markets swiftly on Friday. While many company’s felt the negative impact of this new variant, others saw the exact opposite.

Inspira’s focus on respiratory support technology may have helped add to the bullishness last week. With the virus wreaking havoc on the respiratory system, overall, traders shifted focus to related stocks. Inspira’s Augmented Respiration Technology (ART) platform is designed to recalibrate oxygen saturation levels in patients.

– Hot Penny Stocks To Buy? 7 To Watch As African Variant Shakes Markets

Earlier this year Inspira selected GlobalLogic to develop software for its respiratory support system functioning as an artificial lung. In the corresponding October press release, the company further made mention to COVID-19 patients and how the ART device could help those diagnosed with the virus. Given the state of the stock market right now, many companies, including Inspira, have gained attention as this new virus variant consumes headlines. So it will be interesting to see how things unfold with the week ahead.

reddit penny stocks to watch this week Inspira Technologies IINN stock chart

REE Automotive (NASDAQ:REE)

Then again, it may not be all about the virus in some respects. You can’t ignore the growing trend in green energy stocks. REE Automotive has steadily gained attention in late-November thanks to increased awareness of companies targeting zero-emission vehicles. REE has developed its “REEcorner” technology packs, offering EV manufacturers an option for modular and scalable mobility components to implement in their end products.

In fact, REE stock came into focus toward the end of the month thanks to a LinkedIn correspondence between REE’s CEO, Daniel Barel, and Carlton Rose, President, Global Feel Maintenance & Engineering at UPS. This was in response to Barel’s post about the company’s new Leopard last-mile autonomous delivery solution for e-commerce.

“REE is an amazing company that will have a tremendous impact in the industry. My team and I engaged with them in Israel mid 2019 and they shared their vision, and we shared the UPS vision. REE lead by Daniel Barel understands what the present and future technologies must be to make Last Mile delivery successful and cleaner. I’m looking forward to what’s possible.” – Carlton Rose

With this apparent relationship, there’s been speculative momentum building around REE stock. The question is whether or not virus skepticism will overshadow other trends in the stock market at the start of the week.

reddit penny stocks to watch this week REE Automotive REE stock chart

Which Penny Stocks Are on Your Watchlist Right Now?

If you’re looking for the best penny stocks to buy in 2021, there are plenty of options to choose from. However, because there are so many choices, it can be overwhelming at times. But, with so much bullish momentum in the stock market right now, making money with penny stocks is entirely possible. Considering that, which penny stocks are on your watchlist right now?

https://www.entrepreneur.com/article/399463

What to Make of the Recent Stock Market Pullback?

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on StockNews

I had written up a commentary that I intended to send out this morning that was going to focus on some bigger-picture, strategic items related to market cycles and developing optimal buy and sell rules. But this notion was destroyed faster than yesterday’s pecan pie, when I glanced at the market futures. Today saw more than a 2% decline for the S&P 500 (SPY) and a more than 3% pullback for the Russell 2000 in a half days’ worth of trading. So today’s abbreviated commentary will focus on this drop. And then, we will address the elephant in the room – is it the culmination of the market’s rough patch which we discussed last week, or the start of another leg lower? Read on below to find out more….

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(Please enjoy this updated version of my weekly commentary published November 26, 2021 from the POWR Stocks Under $10 newsletter).

In last week’s commentary, we discussed that the S&P 500’s 1% gain was masking weakness under the surface as the Russell 2000 was down by 2%. And, these trends got only more extreme as the S&P 500 is down by 2.4%, while the Russell 2000 is down by 5% since last Thursday.

Of course, the bulk of the selling took place today in an abbreviated trading session. The biggest reason was reports of another coronavirus variant, B1.1.529, that is spreading rapidly in South Africa at much faster rates than previous variants. Some cases have been identified in Europe and parts of Asia, and there are doubts about the vaccine’s efficacy against it.

I think another lesser, secondary factor in the risk-off mood was the report issued by Goldman Sachs’ chief economist, Jan Hatzius, who called for an accelerated taper and 3 rates hikes next year. This would be a much faster tightening timetable than indicated by the Fed futures market and comments by policymakers.

As we’ve covered in the past, tightening policy, on its own, does not guarantee that stocks will decline, but it would certainly be a reason to turn bearish in an environment where earnings growth is flat or negative. However, the reality is that we are coming out of Q3 which had 40% earnings growth, and there’s little reason to expect this is going to immediately reverse.

Beginning or the End?

I think someone with a bearish inclination could look at today’s action and conclude it’s the beginning of the long-awaited correction with this new variant and a hawkish Fed being the precipitating factors.

And, they would be wrong. In fact, I believe it’s more likely that we are in the final climax moments of this recent “pause” in the market’s advance.

First of all, despite the drama, the S&P 500 is only 3% off its all-time highs (set this past Monday AM). So, we are firmly in the dip category.

But, I’m seeing sentiment extremes in terms of the VIX now being very overbought and an elevated put/call ratio. And, we have to acknowledge that today was a low-volume, low-liquidity trading day, so all moves are exaggerated due to the market being more “thin” than normal.

What’s Next? I’m expecting a retest of today’s lows and a possible undercut which should mark the ultimate bottom and provide the final launching pad for our year-end rally.

Not much has changed that would alter our bullish stance and expectations of an end of year, buying frenzy. In fact, this is the ideal shakeout to turn sentiment bearish and get some weak hands to capitulate on their positions.

Summary

One of my favorite rap lines…

Sunny days wouldn’t feel so good without rain/

Joy wouldn’t feel so good without pain – 50 Cent

True in life and true in the markets.

Taking advantage of these extreme, illogical moves in the markets that are not supported by the fundamentals is the key to outperformance.

The last great buying opportunity was in mid-October, and we were able to pick up a couple of stocks that went up more than 50% and a handful that were up more than 20%.

I believe that today’s selling is creating another similar opportunity and is likely going to be the last buying opportunity before the year-end frenzy commences.

What To Do Next?

The POWR Stocks Under $10 portfolio launched in September and is off to a tremendous start.

What is the secret to its success?

The portfolio gets most of its fresh picks from the Top 10 Stocks Under $10 Strategy which has market beating +62.88% annual returns.

If you would like to see the current portfolio of low-priced stocks, then consider starting a 30 day trial by clicking the link below.

About POWR Under $10 newsletter & 30 Day Trial >>

All the Best!

Jaimini Desai
Chief Growth Strategist, StockNews
Editor, POWR Stocks Under $10 Newsletter

SPY shares closed at $458.97 on Friday, down $-10.47 (-2.23%). Year-to-date, SPY has gained 23.96%, versus a % rise in the benchmark S&P 500 index during the same period.

About the Author: Jaimini Desai

Jaimini Desai has been a financial writer and reporter for nearly a decade. His goal is to help readers identify risks and opportunities in the markets. He is the Chief Growth Strategist for StockNews.com and the editor of the POWR Growth and POWR Stocks Under $10 newsletters. Learn more about Jaimini’s background, along with links to his most recent articles.

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Do Options Traders Know Something About Endo International (ENDP) Stock We Don’t?

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Investors in Endo International plc ENDP need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 21, 2021 $3.00 Put had some of the highest implied volatility of all equity options today.

– Zacks

What is Implied Volatility?

Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?

Clearly, options traders are pricing in a big move for Endo International shares, but what is the fundamental picture for the company? Currently, Endo International is a Zacks Rank #1 (Strong Buy) in the Medical – Drugs industry that ranks in the Bottom 32% of our Zacks Industry Rank. Over the last 30 days, four analysts have increased the earnings estimates for the current quarter, while none have revised the estimate downward. The net effect has widened our Zacks Consensus Estimate for the current quarter from 50 cents per share to 66 cents per share in that period.

Given the way analysts feel about Endo International right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

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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.

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CrowdStrike (CRWD) Set to Report Q3 Earnings: What’s in Store?

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CrowdStrike Holdings CRWD is slated to report third-quarter fiscal 2022 results on Dec 1.

– Zacks

The company anticipates third-quarter fiscal 2022 revenues in the range of $358 million to $365.3 million. The Zacks Consensus Estimate for the same is pegged at $364.8 million, indicating an improvement of 56.9% from the year-ago quarter.

CrowdStrike expects non-GAAP earnings between 8 cents and 10 cents per share. The Zacks Consensus Estimate for non-GAAP earnings stands at 10 cents per share, suggesting an improvement of 25% year over year.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 44.4%.

Let’s see how things have shaped up before this announcement.

Factors to Note Ahead of Q3 Earnings

CrowdStrike’s third-quarter results are likely to reflect benefits from continued solid demand for its products, given the healthy environment of the global security market.

The increasing number of people logging into employers’ networks have triggered a greater need for security and might have spurred demand for CrowdStrike’s products in the third quarter. A strong pipeline of deals indicates the same.

Stellar revenue growth in subscription might have contributed significantly to the to-be-reported quarter’s top line. Further, the increasing number of net new subscription customers may have acted as a tailwind as well.

The recent acquisition of Humio and Preempt is likely to have strengthened CrowdStrike’s capabilities and may have attracted new customers.

CrowdStrike’s collaboration with Amazon‘s AMZN Amazon Web Services (“AWS”) is an upside, benefiting the company from its products’ availability on the AWS platform.

Expansion in the volume of transactions through Amazon’s AWS Marketplace, growth in the co-selling opportunities with AWS salesforce and the uptake of AWS service integrations are likely to have contributed to CRWD’s earnings performance in the to-be-reported quarter.

However, the elevated expenses toward enhancing sales and marketing capabilities, and an increased investment in research and development are likely to have weighed on CrowdStrike’s third-quarter bottom line.

What Our Model Says

Our proven model predicts an earnings beat for CrowdStrike this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported with our Earnings ESP Filter.

CrowdStrike currently carries a Zacks Rank #3 and has an Earnings ESP of +0.92%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks with Favorable Combinations

Per our model, PVH Corp. PVH and AutoZone AZO also have the right combination of elements to post an earnings beat in their upcoming releases.

PVH Corp. is slated to report third-quarter fiscal 2022 results on Dec 1. PVH carries a Zacks Rank #2 and has an Earnings ESP of +1.61% at present. PVH’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 177.5%.

The Zacks Consensus Estimate for its quarterly earnings is pegged at $2.07 per share, suggesting a year-over-year improvement of 56.8%. PVH’s quarterly revenues are estimated to increase 13.4% year over year to $2.40 billion.

AutoZone carries a Zacks Rank #2 and has an Earnings ESP of +2.68%. AutoZone is scheduled to report first-quarter fiscal 2022 results on Dec 7. AZO’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.6%.

The Zacks Consensus Estimate for AutoZone’s first-quarter earnings is pegged at $20.65 per share, suggesting a year-over-year decline of 11%. The consensus mark for revenues is pinned at $3.33 billion, indicating a year-over-year decrease of 5.6%.

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Pinnacle West’s (PNW) CAPEX & Clean Energy Aims Augur Well

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Pinnacle West Capital Corporation’s PNW planned investments in strengthening its infrastructure and an increasing focus on renewable sources for power generation will help it take advantage of the expected demand surge for clean energy. Also, PNW’s efforts to reduce costs will drive its earnings.
The Zacks Consensus Estimate for 2021 earnings is pegged at $5.08 per share, indicating growth of 4.31% from the year-ago quarter’s reported figure. Also, the consensus mark for current-year revenues stands at $3.62 billion, suggesting 0.97% growth from the prior-year period’s reported number. Additionally, long-term (three-five years) earnings growth is pegged at 5%.
In the past month, shares of this currently Zacks Rank #3 (Hold) Pinnacle West have lost 0.7% against the industry’s growth of 0.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

– Zacks

One Months Price Performance

Image Source: Zacks Investment Research

Tailwinds

Pinnacle West’s investments in clean power generation, and transmission and distribution lines will help it expand its customer base with better efficiency. PNW spent $1,006.4 million in the first nine months of 2021 and has plans to spend $6,210 million during the 2021-2024 forecast period with the current-year expectation being $1,500 million to strengthen and expand its existing infrastructure. Moreover, PNW is working ontrimming costs, which will help keep the customer rates low as well as enhance its customer benefits and shareholder value.
Apart from growing its utility infrastructure, Pinnacle West continues focusing on expanding its generation from renewable sources. In the 2021-2024 time frame, PNW will invest $1,487 million in increasing clean power generationand plans to deliver 100% carbon-free electricity to its customers by 2050. This includes a near-term target of attaining a resource mix within 2030 comprising 65% clean energy and 45% renewable sources.
Other electric utilities also adopting measures to supply clean and reliable energy to their customers include the likes of Duke Energy DUK, DTE Energy DTE and Alliant Energy LNT. While DUK and DTE carry a Zacks Rank#3 at present, LNT holds a Zacks Rank #2 (Buy). All three stocks are planning to provide absolute clean energy by 2050.
DTE Energy remains committed to reducing carbon emissions of its electric utility operations by 32% within 2023, 50% by 2030 and 80% by 2040 from the 2005 carbon emissions levels. Duke Energy plans to reduce carbon footprint between approximately 55% and 75% through 2035. Alliant Energy intends to retire all the existing coal-fired generation units by 2040 with an objective to lower emissions from the 2005 baseline by 50% within 2030.

Headwinds

Pinnacle West’s progress could be hindered by fluctuations in commodity prices, stringent environmental regulations and unplanned outages in nuclear-generation facilities.

Bitcoin, Like the Internet Itself, Could Change Everything

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Duke Energy Corporation (DUK): Free Stock Analysis Report

DTE Energy Company (DTE): Free Stock Analysis Report

Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report

Alliant Energy Corporation (LNT): Free Stock Analysis Report

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https://www.entrepreneur.com/article/399410