4%
Stock Market Today: Stocks Paper Over Lousy Week With Wild Friday
Wall Street spent most of Friday applying some vibrant lipstick to what was otherwise a pig of a week for investors.
A broad market rally â one that saw each of the S&P 500’s 11 sectors finish higher â wasn’t a response to any new positive catalysts. Quarterly reports were light today, with most investors flipping the earnings calendar to next week’s retail-heavy slate.
- SEE MORE Coinbase Brings Another Cryptocurrency Risk to Light
And Friday’s most noteworthy datapoint was the University of Michigan’s latest consumer sentiment index reading, which dropped from 65.2 in April to 59.1 in May â a 10-year nadir that was well lower than the 64.1 reading expected.
Sometimes the market just enjoys a relief rally.
“Following a week of heavy selling, but with inflationary pressures easing just at the margin, and the Fed still seemingly wedded to 50-basis-point hikes for each of the next two FOMC meetings, the market was poised for the kind of strong rally endemic to bear market rallies,” says Quincy Krosby, chief equity strategist for LPL Financial.
He adds that given the Federal Reserve is only at the beginning of its rate-hike cycle and would like to see demand pull back further, “this rally will most likely weaken.”
Of course, even if this is just a pause before more market declines, investors don’t necessarily have to time the bottom to buy in at a decent valuation.
“This is still an attractive entry point, as we do not believe this is 1999/2000,” says Nancy Tengler, CEO and CIO of asset management firm Laffer Tengler Investments.
Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
The buying was strongest in consumer discretionary stocks (+3.9%) such as Amazon.com (AMZN, +5.7%) and Tesla (TSLA, +5.7%), along with technology plays (+3.3%) including Nvidia (NVDA, +9.5%) and Advanced Micro Devices (AMD, +9.3%).
- SEE MORE 65 Best Dividend Stocks You Can Count On in 2022
Energy (+3.4%) was also bid higher amid a big pop in oil; U.S. crude futures finished 4.1% higher to $110.49 per barrel, helping to spark new highs in gasoline futures prices.
Notably absent from the rally was Twitter (TWTR, -9.7%), which sank after Elon Musk tweeted that the deal was “temporarily on hold.”Â
All the major indexes put up spectacular gains Friday, though for the week, it was still losses all around: The Nasdaq Composite (+3.8% to 11,805) still finished off 2.8% for the week, the S&P 500 (+2.4% to 4,023) was down 2.4% across the five days, and the Dow Jones Industrial Average (+1.5% to 32,196) closed the week 2.1% in the red.
YCharts
Other news in the stock market today:
- The small-cap Russell 2000 bounced 3.1% to 1,792.
- Gold futures had no such luck. The yellow metal was off 0.9% to a 14-week low of $1,808.20 per ounce.
- Bitcoin snapped back 5.1% to $30,034.99. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Keep Your Guard Up Against Inflation
Inflation is prevalent virtually everywhere â including on corporate America’s earnings calls.
- SEE MORE 12 of Wall Street’s Newest Dividend Stocks
We’re most of the way through the first-quarter earnings season, and over the past few months, publicly traded companies keep repeating the “I” word as they discussed their most recent financial results.
FactSet used its Document Search technology to track mentions of the term “inflation” on corporate earnings calls, According to their senior earnings analyst, John Butters, of the 455 S&P 500 companies that have conducted earnings conference calls from March 15 through May 12, “377 have cited the term ‘inflation’ ⦠which is well above the five-year average of 155.”
In fact, this is the highest overall number of S&P 500 companies citing inflation on their calls going back to at least 210. (The previous record? 356 ⦠in the final quarter of 2021.)
It’s another signal that inflation continues to be a persistent problem â and with forecasts calling for still-high inflation to come, more active investors might do well to pack a little more protection. We’ve previously analyzed other ways to stay in front of inflation, such as stocks with pricing power and inflation-fighting funds.
Today, we look at another batch of investments that can help harness high inflation, with a focus on commodities, real estate and other areas of the market.
Kyle Woodley was long AMD, AMZN and NVDA as of this writing.
- SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022
Credit Card Reviews: Best Credit Cards for Average Credit
From the Mint team: Mint may be compensated if you click on the links to our issuer partnersâ offers that appear in this article, including Chase. Our partners do not endorse, review or approve the content. Any links to Mint Partners were added after the creation of the posting. Mint Partners had no influence on
The post Credit Card Reviews: Best Credit Cards for Average Credit appeared first on MintLife Blog.
Stock Market Today: Stocks Stumble as Inflation Remains Red-Hot
It was a choppy day for stocks as investors unpacked the latest consumer price index (CPI). Data released by the Labor Department this morning showed that prices consumers paid for goods and services in April rose at an annual rate of 8.3% â down from March’s 8.5% pace to mark the first drop in inflation in eight months. While encouraging at first glimpse, there were concerning signs deeper inside the report.
For instance, the decline in CPI last month reflected a drop in gas prices, which have since rebounded. Food prices remained elevated, while airfare and restaurant bills increased ahead of the key summer travel season. And core CPI, which excludes the volatile energy and food categories, rose 0.6% on a sequential basis â double what it was in March.
- SEE MORE 5 Stocks to Sell or Avoid Now
“While this report appears to mark the first that shows some moderation from the ever-rising pace of inflation since September of last year, one data point does not necessarily make a trend; and the rise in core CPI should lead to some consideration that the moderation in inflation will not be quick,” says Jason Pride, chief investment officer of private wealth at wealth management firm Glenmede.Â
With prices already high, Pride said, it should be harder for the CPI to continue to rise at the same pace, especially with the Federal Reserve also hiking interest rates to combat higher prices. “However, it will likely take multiple reports for such a trend [of moderating inflation] to clearly establish itself,” he says.
Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
This sentiment is echoed by Mike Loewengart, managing director of Investment Strategy at E*Trade. “Today’s read is a stark reminder that the journey to pre-pandemic levels of inflation will be a long one,” Loewengart says. “Although inflation slowed from March, the market’s reaction suggests that record high prices continue to weigh heavy on investors psyches. And with inflation persistently hot, the Fed has more fodder for increased rate hikes, which the market doesn’t often welcome with open arms.”
After bouncing between gains and losses in early trading, markets took a decisive turn lower this afternoon. At the close, the Nasdaq Composite was down 3.2% at 11,364, the S&P 500 Index was off 1.7% at 3,935 and the Dow Jones Industrial Average was 1.0% lower at 31,834.Â
YCharts
Other news in the stock market today:
- The small-cap Russell 2000Â retreated 2.5% to 1,718.
- U.S. crude futures surged 6% to end at $105.71 per barrel.
- Gold futures gained 0.7% to settle at $1,853.70 an ounce.
- Bitcoin slid below the $30,000 for the first time since July 2021, down 5.9% at $29,477.50. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Roblox (RBLX) was down as much as 10% in after-hours trading Tuesday after the video game developer reported a first-quarter loss of 27 cents per share, wider than the 21 cents per share Wall Street was expecting. The company’s revenue of $631.2 million also fell short of the consensus estimate, as did bookings of 54.1 million. Still, the metaverse stock managed to finish today up 3.4% after Chief Financial Officer Michael Guthrie said on the company’s earnings call that year-over-year growth may have bottomed in March, sooner than anticipated.Â
- Coinbase Global (COIN) shares plunged 26.4% on Wednesday after delivering a pretty disappointing quarterly report. Q1 revenues were off 27% year-over-year to $1.17 billion, widely missing analysts’ expectations for $1.50 billion. Meanwhile, the company swung to a $430 million loss after earning $388 million in the year-ago period. Monthly users were down 19% YoY, too. Also raising eyebrows in the cryptocurrency community was an update to the Risk Factors section in its Form 10-Q, warning that users could potentially lose access to their assets in the event Coinbase ever had to go through bankruptcy proceedings.
Inflation Remains a Top Concern for Investors
Inflation remains top of mind for investors. This is according to the latest Charles Schwab Trader Sentiment Survey, which reviews the outlooks, expectations and trading patterns of 845 Charles Schwab and TDAmeritrade clients. Inflation was the main concern for those surveyed in the report (20% of respondents), followed by geopolitics (15%) and recession/domestic politics (12% apiece). And nearly half of participants (45%) do not believe inflation will begin to ease until 2023.Â
“Overall, in the second quarter, market sentiment among traders is unquestionably skewing bearish,” says Barry Metzger, head of trading and education at Schwab. But market participants do see investing opportunities, the report notes.
- SEE MORE Buy the Dip in EV Stocks? Here Are 7 to Consider
Among the sectors survey respondents are most bullish on at the moment are energy (70%) and utilities (54%). The industries they are most upbeat toward include cybersecurity (71%) and agriculture (70%).Â
And 70% of those surveyed are interested in seeking out opportunities in defense stocks. While Russia’s invasion of Ukraine has unsettled many parts of the stock market, it has also sparked an increase in global military spending, which could create a potential boon for the industry. Here, we’ve compiled a quick list of defense stocks that are poised to benefit from this spending build. The names featured include familiar names as well as some under-the-radar picks â and they all sport top ratings from Wall Street’s pros.
- SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022
When Should You Lock in a Mortgage Interest Rate?
These 14 Major Employers Offer Part-Time Jobs With Benefits
Think you need to work long hours to qualify for company-backed retirement plans, tuition reimbursements and affordable health insurance? Actually, you donât have to have to be a full-time employee to get those perks. There are many companies that offer generous benefit packages for their hourly part-time employees. These 14 companies lead the way in [â¦]
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Stock Market Today: Stocks Try to Find Their Legs Ahead of CPI Report
Wall Street searched for stability Tuesday, with a couple of the major indexes able to muster some gains ahead of a vital inflation reading tomorrow.
The 10-year Treasury note, after touching 3.2% yesterday, pulled back below the 3% threshold to as low as 2.94%. This retreat in interest rates removed some pressure from growthier stocks (which had been pummeled Monday), with technology (+1.5%) firms leading the session’s relief rally. Semiconductor stocks such as Nvidia (NVDA, +3.8%), Broadcom (AVGO, +3.3%) and NXP Semiconductor (NXPI, +3.2%) were among the day’s notable risers.
- SEE MORE The 22 Best Stocks to Buy for 2022
It wasn’t all roses, though. Investors continued to punish once-hot companies showing any signs of weakness.
For instance, artificial-intelligence lending-platform maker Upstart Holdings (UPST) plunged 56.4% to trade around all-time lows. While it beat Street estimates for first-quarter earnings, the company reduced full-year revenue forecasts to $1.25 billion from $1.4 billion previously.
Work-from-home darling Peloton Interactive (PTON, -8.7%) continued its fall from grace after reporting a 15% year-over-year decline in sales, a $757 million net loss and a dwindling cash pile that CEO Barry McCarthy said left the company “thinly capitalized.”
Even AMC Entertainment (AMC, -5.4%) was knocked lower despite a pretty encouraging report in which Batman and Spider-Man films helped the theater company to report a narrower-than-expected quarterly loss.
Still, the major indexes showed some strength. The Nasdaq Composite rebounded 1.0% to 11,737, while the S&P 500 improved 0.3% to 4,001. The Dow Jones Industrial Average brought up the rear, declining 0.3% to 32,160.
Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
“Markets are clearly confused about what the Fed will do this year and just how aggressive it will get. That can be seen in the volatility in expectations for where the Fed funds rate will be at the end of 2022, as seen in Fed funds futures,” says Invesco Chief Global Market Strategist Kristina Hooper. “And it is reflected in stock market volatility, with the VIX above 30.”
- SEE MORE Dividend Dates: A Beginner’s Guide
The big story to watch tomorrow is the Bureau of Labor Statistics’ consumer price index (CPI) report for April. BlackRock, for one, expects 8.1% headline CPI growth and 6.0% core growth following 8.5% and 6.5% increases in March.
“A weaker-than-expected CPI report later this week could help turn the tide and see investors embrace risk assets once again,” says Brian Price, head of investment management for independent broker-dealer Commonwealth Financial Network.
YCharts
Other news in the stock market today:
- The small-cap Russell 2000Â slipped marginally to 1,761.
- U.S. crude futures slipped below the $100 per-barrel mark, ending the day down 3.2% at $99.76 per barrel.Â
- Gold futures fell 0.9% to settle at $1,841 an ounce.
- Bitcoin clawed out a 0.5% gain to $31,315.54. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Groupon (GRPN) slid 12.5% after the e-commerce marketplace swung to an adjusted loss of 80 cents per share in its first quarter, compared to a per-share profit of 25 cents in Q1 2021. GRPN also said revenue slid 41% year-over-year to $153.3 million, while global units sold slumped 29% to 12.7 million. The company gave soft current-quarter and full-year revenue guidance, as well. “The underperformance was driven by a weaker rebound in local following omicron impacts in January and February,” says Credit Suisse analyst Stephen Ju, who maintained a Neutral (Hold) rating on GRPN. “As merchants found themselves in a high demand/low capacity environment, they were not incentivized to leverage discounting. Furthermore, April local billings continue to trend at Q1 2022 (as a percentage of 2019) levels and latest trends suggest an elongated recovery path.”
- Vroom’s (VRM) narrower-than-expected first-quarter loss sent shares up 32.4% today. In its first quarter, the online used auto dealer reported a per-share loss of 71 cents per share vs. a consensus estimate for a loss of $1.07 per share. Revenue of $923.8 million also came in higher than analysts had expected. VRM also announced a new business realignment plan for long-term growth that it anticipates will result in up to $165 million in cost savings through the rest of 2022. “Vroom is shifting to survival mode, understandably, swapping out more aggressive growth plans for a leaner, and potentially more profitable business model,” says Baird Equity Research analyst Colin Sebastian (Outperform). “Given the current market environment, and challenges in scaling up an ‘asset light’ online sales platform, we think this pivot makes sense.”
Stick to (Most Of) Your Guns
“More than anything, volatility is a test of investor mettle.” So says Ross Mayfield, investment strategy analyst at research firm Baird, who notes that while we’re often told volatility is the price to pay in the stock market’s long-term gains, this glosses over the fact that volatility can take many forms.
- SEE MORE 5 Leading Lithium Stocks Worth Digging Into
“March 2020 featured a gut-wrenching drop, but also a relatively quick rebound. On the other end of the spectrum, markets are occasionally plagued by periods of high volatility that churn sideways relentlessly,” he says. “Each is challenging in its own way; holding through a big drop requires a steel stomach, but longer periods of frustrating volatility require real fortitude.”
While staying the course isn’t easy, you can at least make it less difficult on yourself by homing in on higher-quality investments with a longer-term focus. Stock investors might look to the Dow Jones’ top-rated components; fund investors should stick to well-managed products, such as these Vanguard funds commonly found in 401(k) plans.
But remember: Keeping a calm head doesn’t mean you shouldn’t ever sell in a downturn â on the contrary, the only thing worse than suffering losses in the first place is holding on to weak positions that will slather you in more red ink down the road.Â
With that in mind, we’ve taken a look at some of Wall Street’s least favorite names at the moment. Remember: Sell calls are typically rare among the analyst community, so the fact that the pros are calling for more downside in these names, rather than saying to buy the dips, is noteworthy.
Check out Wall Street analysts’ list of stocks to sell right now.
Kyle Woodley was long NVDA as of this writing.
- SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022
Stock Market Today: Stocks, Bonds, Crypto and More Take a Dive
The S&P 500 fell to its lowest point in more than a year Monday as last week’s selloff retained all of its momentum and bled into just about anything that trades.
Interest-rate fears continued be the selloff’s primary driver. The 10-year Treasury briefly touched 3.2% today and, even after pulling back to 3.06%, sits around levels last seen in 2018.
- SEE MORE 12 of Wall Street’s Newest Dividend Stocks
“Interest rates are a hammer, not a scalpel â they are blunt tools designed to move slowly and with great force, rather than precisely,” says Andy Kapyrin, co-chief investment officer at registered investment advisory firm RegentAtlantic. “The Fed is swinging the interest rate hammer, and the financial markets are responding to the aftershocks.”
Technology (-3.9%) and consumer discretionary (-4.3%) were among the usual suspects in a trading day that saw each of the 11 S&P 500 stock sectors finish in the red. But this was a wide selloff that went well beyond just stocks and bonds.
U.S. crude oil futures, for instance, cratered by 6.1% to $103.09 per barrel, amid ongoing worries that China’s strict COVID-19 lockdowns will cramp oil prices. Indeed, energy (-8.3%) was Monday’s worst-performing sector, with even blue chips such as Exxon Mobil (XOM, -7.9%) and Chevron (CVX, -6.7%) taking it on the chin.
Gold futures? A bad day, too, off 1.3% to $1,858.60 per ounce as investors piled into the U.S. dollar.Â
Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
Cryptocurrencies haven’t provided safety, either. Bitcoin, which fell as low as $30,375 and finished off 13.4% to $31,153, has now fallen by more than 50% from its November 2021 peak. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Edward Moya, senior market strategist at currency data provider OANDA, notes that institutional buyers are starting to pay close attention to Bitcoin, given that many who got in during 2021 are now losing money on their investment. “If the $30,000 level breaks, that could trigger a flash crash environment if several whales unload,” he says.
- SEE MORE 14 Hot Upcoming IPOs to Watch For in 2022
The Nasdaq Composite (-4.3% to 11,623) has re-entered bear-market territory, off nearly 28% from its January highs. The S&P 500 (-3.2% to 3,991 â its lowest close since March 31, 2021) needs to lose another 4% or so before entering a bear market, while the Dow Jones Industrial Average (-2.0% to 32,245) would have to retreat another 9%.
YCharts
Other news in the stock market today:
- The small-cap Russell 2000Â sank by 4.2% to 1,762.
- Palantir Technologies (PLTR) stock surrendered 21.3% after the data analytics company reported lower-than-expected first-quarter earnings per share (2 cents actual vs. 4 cents estimated). The company also gave current-quarter guidance below Wall Street’s estimates, adding that there is “a wide range of potential upside to our guidance, including those driven by our role in responding to developing geopolitical events.” One high note of PLTR’s financial results was its Q1 revenue of $446.4 million, up 31% year-over-year and above the average estimate.
- Rivian Automotive (RIVN) plummeted 20.9% after sources told CNBC that Ford Motor (F, -5.9%) will sell 8 million RIVN shares after the electric vehicle maker’s insider lockup period expired on Sunday. The news also dragged on Amazon.com (AMZN, -5.2%), which owns roughly 158.4 million RIVN shares, according to S&P Global Market Intelligence. “The news is not surprising to us, especially after the two companies terminated a partnership to jointly develop an EV last November and as Ford begins deliveries of the F-150 Lightning, a direct competitor to Rivian’s R1T pickup truck,” says CFRA Research analyst Garrett Nelson, who maintained a Hold rating on the EV stock.
The Strongest Parts of a Weak Market
Green ink was in shockingly short supply Monday â but relative success was found among the usual suspects.Â
- SEE MORE Should I Buy Bonds?
“This collapse should continue the rotation into defensive dividend stocks,” says Jay Hatfield, chief investment officer of ETF manager Infrastructure Capital Management.Â
Consumer staples, which was only marginally lower Monday, and utilities, second-best at a 0.8% decline, are among such beneficiaries, Hatfield says.
Among their greatest qualities right now is what’s sure to be a common refrain in near-term investment advice: pricing power. In short, as inflation continues to march unimpeded, those companies that are best able to push most of those prices on to consumers should fare best â and while your average American might go a few extra months without taking a vacation or buying a new pair of Nikes, they’re unable to pull back much on basic necessities such as food and electricity.Â
Read on as we examine a number of stocks with exceptional pricing power â as well as highlight several names that, while good companies in their own right, will have an uphill battle as long as inflation remains white-hot.
- SEE MORE Sell in May and Go Away? Here We Go Again …
How to Finance an RV â What to Know About RV Loans
Owning an RV is a dream for many people. Maybe you want to travel the country without having to worry about booking lodging. Or go camping without giving up all of the creature comforts of home. Perhaps youâre itching to downsize and adopt a more mobile lifestyle â one where youâre not tied down to [â¦]
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Walt Disney (DIS) Earnings Expected to Surge as Theme Parks Pop
First-quarter earnings season keeps rolling on. Headlining this week’s earnings calendar will be entertainment giant Walt Disney (DIS, $110.71), oil name Occidental Petroleum (OXY, $62.97) and buy now, pay later company Affirm Holdings (AFRM, $25.04).
Through April 29, the percentage of S&P 500 companies reporting higher-than-expected earnings per share (80%) is above the five-year average (77%). However, the magnitude of the earnings beats (3.4%) is below the five-year average (8.9%), according to John Butters, senior earnings analyst at FactSet.
- SEE MORE 15 Hot Upcoming IPOs to Watch For in 2022
At the sector level, Butters says industrials and consumer staples have had the highest percentage of earnings beats at 91% and 89%, respectively. At the low end, real estate and consumer discretionary have the smallest amount of companies reporting earnings above estimates at 63% apiece.
Can Earnings Give Walt Disney Stock a Boost?
Walt Disney will report its fiscal second-quarter earnings results after the May 11 close.
It has been a rough stretch for the Dow Jones stock, which is off more than 28% for the year-to-date, but another well-received earnings report could give DIS a boost.
In February, shares popped more than 3% after the company reported higher-than-expected earnings, revenue and Disney+ subscriptions.
- SEE MORE Hedge Funds’ 25 Top Blue-Chip Stocks to Buy Now
Disney’s streaming service will be in focus this time around too, especially after Netflix (NFLX) stock sold off sharply when its latest earnings report showed the company’s first quarterly subscriber loss since 2011. However, unlike NFLX, Walt Disney “can monetize content through a variety of other channels, like merchandise and theme park revenue,” says David Trainer, CEO of Nashville-based investment research firm New Constructs.
And in addition to direct-to-consumer subscriber growth across Disney+, Hulu and ESPN+, which will help DIS stock outperform its peers, BofA Global Research analyst Jessica Reif Ehrlich says the company’s theme parks are on the upswing.Â
“Despite achieving near record results in its fiscal first quarter, international visitors still represent a minimal percentage of total attendance, hotel room occupancy remains well below peak levels as all hotels have not been reopened yet, cruise ship capacity remains below pre-pandemic peaks and parks are still operating below peak capacity levels,” Reif writes in a note to clients. “These should all be additional tailwinds over the next 18-24 months.”
As for Disney’s fiscal second quarter, consensus estimates are for earnings per share (EPS) of $1.06, up 34.2% year-over-year (YoY) and revenue of $18.8 billion (+20.1% YoY).
Occidental Petroleum Earnings in Focus After Big Buffett Buy
Occidental Petroleum has been in the limelight in recent weeks following news that Warren Buffett’s Berkshire Hathaway (BRK.B) increased its stake in the energy stock.Â
OXY first became a member of the Berkshire Hathaway equity portfolio in 2019, but the holding company more recently bought 91 million shares amid Buffett’s big spending spree.
The integrated oil and gas company will once again be in the spotlight when it unveils its first-quarter earnings results after Tuesday’s close.
Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
OXY ended 2021 in a strong position, returning to profitability on an annual basis after two years of losses and recording its highest free cash flow â or the money available after a company has met its financial obligations â ever.
The company no longer resembles the debt-ridden firm of fiscal 2020 following its “record-shattering fiscal 2021,” says Raymond James analyst John Freeman (Strong Buy).Â
“Leverage, which stood at around 4.8x at year-end 2020 â nearly double the Raymond James large-cap average â is estimated to fall below 1x by year-end 2022. The company, who remains completely unhedged in fiscal 2022, stands to generate a whopping $12.3 billion in free cash flow on our estimates of production of around 1.6 millions of barrels of oil equivalent per day (in-line with Street),” Freeman adds.
Underscoring this financial strength, analysts, on average, are expecting OXY to report earnings of $2.03 per share in Q1 versus a per-share loss of 15 cents in the year-ago period. Revenue is projected to jump 47.3% to $8.1 billion.
Affirm Selloff Creates Opportunity, Says Analyst
Affirm Holdings has not been immune to broad-market troubles in 2022, with shares down more than 75% for the year-to-date.
The reaction to the buy now, pay later (BNPL) stock’s mid-February earnings report â where AFRM shares slid nearly 21% the day after the results were released â only exacerbated these headwinds.
“AFRM has been pressured since reporting fiscal second-quarter results,” says Truist Securities analyst Andrew Jeffrey. This, according to Jeffrey, is due to a general multiple contraction, liquidity concerns and the perception of rising competition.Â
However, the analyst, who has a Buy rating on AFRM stock, isn’t worried. While the recent selloff creates an opportunity, “rising BNPL demand, driven by changing consumer demographics and tastes, creates opportunity for several providers.” And secular demand for BNPL “will outpace any cyclical headwinds.”
So what’s in store for Affirm’s fiscal third-quarter earnings report, due out after Thursday’s close?
Consensus estimates are for the company to record a per-share loss of 53 cents for the three-month period, an improvement over the $1.06 per-share loss it reported in the year-ago period. Revenue, meanwhile, is expected to climb 73.6% YoY to $344.0 million.
- SEE MORE 37 Ways to Earn Up to 9% Yields on Your Money