Nasdaq Stocks

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Ameren (AEE), which belongs to the Zacks Utility - Electric Power indust

Chipotle Mexican Grill stock (NYSE: CMG), a fast-casual restaurant chain that focuses on fresh and organic ingredients in burritos, salads, and more, is scheduled to report its fiscal fourth-quarter results on Tuesday, February 6. We expect CMG’s stock to see little to no

Corning (NYSE: GLW) recently reported its Q4 results, with revenues falling above and earnings meeting the street estimates. The company reported core revenue of 3.3 billion, down 10% y-o-y but above the $3.2 billion consensus estimate. Its adjusted earnings of $0.39 per share we

McDonald’s stock (NYSE: MCD), a restaurant chain consisting of more than 40,000 mostly franchised stores, is scheduled to report its fiscal fourth-quarter results on Monday, February 5. We expect MCD stock to likely see little to no movement with revenues and earnings mat

Microsoft’s stock (NASDAQ: MSFT) has gained nearly 70% since the start of 2023 as compared to the ~30% rise in the S&P500 index over the same period. At its current price of just above $400 per share, it is trading 4% below its fair value of $419 – Trefis’ e

Indian states will aim to raise an aggregate of 267.10 billion rupees ($3.22 billion) on Tuesday through a sale of bonds maturing in two years to 30 years.

Shares of ailing fintech firm PayPal ( NASDAQ:PYPL ) failed to impress (or "shock the world") when it revealed its artificial intelligence (AI) plans as part of its recent announcement. Undoubtedly, PayPal is very much in the AI race after the not-so-surprising announcements that were quick to be shot down by analysts and investors alike. The firm is still a legit underdog in the so-called AI race, even if its recent AI-driven features failed to generate hype right off the bat. Though PayPal may not be standing nearly as tall as its peers in the mega-cap tech scene, some of whom have far more ambitious AI plans, I still believe it's a mistake to count PayPal out of the game as it looks to get its share price back on the right track. Indeed, nothing seems to be working for PayPal these days. The stock likely lost a ton of confidence when it shed more than 80% of its value since its mid-2021 peak at just north of $300 per share. After such a catastrophic implosion, investors don't seem to be buying into the firm's turnaround potential. PayPal Is Shocking Nobody Right Now, but It May at Some Point Whether we're talking PayPal's PYUSD stablecoin offering in the crypto universe, the recent layoff of 9% of its staff, or the latest AI plans, it seems like the firm is really trying to put its hand in many pies to win back some of the investors it had lost over the last two and a half years. For now, it doesn't seem like they're coming back. However, if PayPal can continue innovating on the front of AI, perhaps it can shock the world at a later date. In any case, the recent AI announcements seem to have set a pretty low bar. And whenever you've got a low bar, it makes it easier to overdeliver. In many ways, PayPal stock seems like dead money, but at these depressed multiples (shares go for 18.6 times trailing price-to-earnings right now), I believe the stakes haven't been this low in quite a while. As such, I'm inclined to be bullish on the stock. PayPal's AI Announcement: Nothing to See Here, Folks? There's no shortage of analysts who weren't shocked in the slightest following the company's presentation centered on AI tech. Mizuho analyst Dan Dolev is one of the analysts who was unenthused by the event, going as far as to say the firm's intent of "doubling down on Branded Checkout may prove a long-term regret." With the negative initial reaction in the stock to PayPal's six AI-powered initiatives, it certainly seems like the tough crowd has gotten a heck of a lot tougher, even with the much lower price of admission on shares. Of the six new AI features, which include an enhanced checkout, Smart Receipts, Fastlane (one-click), CashPass, Advanced Offers, and Upgraded Venmo Business, none really stood out to me as a massive game-changer. Indeed, any one of PayPal's rivals could leverage AI in a way to do many of the same things in the future. At this juncture, it seems like the crowd is inclined to believe that anything PayPal can do, mega-cap tech (think the Magnificent Seven members) can do better, especially when it comes to AI. Which of the Big Six AI Innovations Is Most Intriguing? While Branded Checkout may prove to be somewhat regretful, as Mr. Dolev pointed out, I think the upgraded Venmo Business profiles feature holds the most potential of all six recently announced AI initiatives. Indeed, Venmo is a robust platform with many loyal users to whom PayPal can showcase new tech. Any new innovation that can make the lives of users (especially business users) easier will increase brand loyalty. I firmly believe that adding value (through AI or not) will allow the company to more easily increase its pricing over time. Over the long run, such convenience updates could add up and help bolster the Venmo (and PayPal) ecosystem in a way that makes it harder to jump ship over to a competing payment service provider. Understandably, it will take some time before investors warm up to the recent AI initiatives, perhaps when the AI bets start resulting in actual cash flows — something that may happen a lot sooner than the skeptics and bears expect. Is PYPL Stock a Buy, According to Analysts? On TipRanks, PYPL stock comes in as a Moderate Buy. Out of 30 analyst ratings, there are 14 Buys and 16 Hold recommendations. The average PYPL stock price target is $71.60, implying upside potential of 16.35%. Analyst price targets range from a low of $57.00 per share to a high of $101.00 per share. The Takeaway I don't think it's fair for investors to punish PayPal for its recent AI-heavy event. While it may not have showcased the most ground-breaking features on the planet, I do believe PayPal is on the right track. And over time, the firm certainly has the ability to enrich its offering further as it welcomes AI with open arms. Disclosure

Thus far in 2024, U.S. equities have picked up where they left off in 2023, with mega-cap tech stocks and the Nasdaq 100 ETF (QQQ) dominating. Year-to-date, the index is up a healthy 6.42%, carried by breathtaking gains in the top

40 states and Washington, D.C. now permit either medical or recreational marijuana use. Simultaneously, the cannabis market has grown exponentially and is expected to continue doing so for years. However, because of still-high interest rates, market saturation, and ongoing earnings disappointments, I remain bearish on one of the industry’s darlings: Village Farms ( NASDAQ:VFF ), which looks burnt up. The global cannabis market is expected to increase from $27.7 billion in 2022 to $82.3 billion through 2027. In the U.S. alone, retail cannabis sales are projected to reach $56.9 billion by 2028, a 32.51% increase over 2024’s projected retail cannabis sales of $38.4 billion. Given those factors, on the surface, it may seem like Village Farms' unfortunate performance over the past few years is a buy-low opportunity. That’s especially true when considering how long the company's been in business. For over 30 years, Village Farms has made a name for itself as one of the leading suppliers of fresh produce for retailers in the U.S. and Canada. In 2017, Village Farms branched into cannabis, looking to take advantage of high-growth opportunities. Its wholly-owned subsidiary, Pure Sunfarms, is one of the world’s largest marijuana growers. The company has a global footprint, too, announcing in late January 2024 the build-out of its first indoor production facility in Drachten, Netherlands, with production tentatively slated for Q4 2024. However, like the industry itself, Village Farms faces numerous headwinds that, in the near and medium term, are likely to continue blunting its share price. 3 Pot Stock Headwinds The Canada-based company, founded in 1989, exploded onto the pot stock scene. Shares gained ~1,200% from 2016 to March 21, 2019, when it reached its then-all-time-high closing price of $17.45. After plummeting in April 2020 to around 85% from their highs, shares recovered, ultimately reaching VFF’s all-time-high closing price of $19.37 on February 10, 2021. Unfortunately, it’s all been downhill since. Currently, the stock is trading at around $0.84. Village Farms’ struggles aren’t unique, as demonstrated by last year’s performance of the MJ PurePlay 100 Index, which tracks the shares of 100 pot stocks. In 2023, that index fell by ~15%, hitting its all-time low in October. It's also 91% off its all-time high. A multitude of factors is likely to keep Village Farms underperforming for the foreseeable future and could threaten its three-decade run in the controlled environment agriculture space.   #1: Market Saturation The medical and recreational cannabis industries' rate of growth has resulted in market saturation. Although sales have increased annually, competition's resulted in price reductions, with U.S. retail prices falling by up to 20% from 2021 to 2022. It's expected that fewer than one-quarter of companies in the sector will be profitable when year-end 2023 earnings are reported.  Oversupply is exacerbated by other factors that threaten profitability, including costly licensing and taxes, product losses due to fires stemming from lighting system failures, theft, and a rapidly-spreading plant pathogen that could cost producers billions in the years ahead.   Concurrently, the industry’s rapid expansion and poor performance are deterring investments, resulting in cannabis companies having to lower prices further or cut costs.  #2: Interest Rates While the Federal Reserve's expected to cut interest rates in 2024, the cost of borrowing remains high. Cannabis companies burn through cash. Village Farms doesn’t report Q4-2023 or full-year 2023 earnings until March 14, but as of September 30, 2023, VFF saw its cash on hand fall by 63.05% year-over-year.  Meanwhile, sales were 2.2% lower than the same period a year prior, with $28.81 million in sales in Canadian markets but only $4.99 million in America. The company’s long-term debt stood at $39.81 million. The result — more borrowing and a continuation of negative EPS, which for Q4 2023 is  estimated to be -$0.02. #3: Insurance Rates According to HUB International, an insurance and wealth management firm, “Whether they are growers, retailers or distributors, cannabis companies operate in a complex marketplace with a highly sensitive product. Hazards in cannabis growing and processing facilities remain a concern for underwriters." "High-pressure sodium grow lights present significant fire risks; fertilizers and extraction equipment can compromise worker safety …. Rates are rising for many lines of coverage, and carriers are making modifications, such as reducing indemnity time in business interruption insurance.” To recap:  Market saturation has driven down prices, hurting bottom lines.  Interest rates remain elevated, making the cost of borrowing money higher for companies notorious for high cash burn rates.  Insurance rates are increasing, presenting higher expenses for cannabis producers already operating in the red.  In total, these headwinds are likely to have long-lasting impacts. Given current valuations, cash burn rates, and macroeconomic factors, stocks like VFF may not be the buy-low opportunity investors are hoping they are. This is further illustrated through technical sentiment.  Tepid Technical Sentiment  Despite headlines purporting 2024 as the year for pot stocks, similar headlines made financial news every year since decriminalization and recreational legalization accelerated. However, regardless of renewed enthusiasm, technical sentiment doesn’t align.  One-month technical sentiment is notably negative for VFF, ranging from neutral to bearish in overall consensus, technical analysis consensus, and moving average consensus.  On its three-year chart, VFF has been trading below its 200-week moving average (MA) — the dividing line for long-term bearishness — since November 2021. Further, the 200-week MA (sitting at $4.93) is extremely distant from VFF’s current share price. Given the company’s troublesome fundamentals and headwinds, there’s no reason to expect this to change in the short term.  Is VFF Stock a Buy, According to Analysts?  On TipRanks, VFF stock earns a Strong Buy consensus based on three Buys, zero holds, and zero sells.  The one-year  average VFF stock price target is $1.38, with the low price target at $1.00 per share and the high at $1.75. This represents 58.6% upside potential. However, my contrarian take is that, when factoring in the challenges VFF faces, underperforming those marks in 2024 would not be surprising.  The Takeaway The cannabis industry is expected to continue its rapid growth through the latter part of the decade. Because of progressively lower barriers to entry, the market has become saturated, retail prices have plummeted, and investments have eroded. Those factors, along with high interest rates, increasing insurance rates, and significant long-term debt, make VFF an unlikely candidate to reverse its decline.  Disclosure

Shares of retail behemoth Walmart ( NYSE:WMT ) have been trending higher in recent sessions, now closing in on all-time highs hit back in November 2023. For a stock that's finally breaking out of a more than three-year-long consolidation channel, the retail behemoth's continued ascent seems worth getting behind as the stage looks set for higher highs in 2024. With no shortage of bulls — shares of WMT currently have a Strong Buy rating — in the Wall Street analyst community, it's hard not to be bullish on the old-school retail giant that's betting big on tech as it continues to adapt to the digital (and now artificial intelligence) age. In this piece, we'll look at key factors that could help Walmart march higher in 2024 and beyond as the resilient and defensive company looks to new growth horizons. Though some investors may perceive Walmart as a boring, low-tech stock to own if you think an economic recession will be on the horizon, I view it as so much more. As certain high-tech efforts begin to pay off, count me as unsurprised if the $454 billion behemoth can use its size to its advantage and perhaps win over a greater chunk of market share in the competitive retail scene. The New Walmart Seems to Be Worth a More Premium Price Tag Unless you're a member of the Magnificent Seven cohort, it's pretty hard to grow as the effects of corporate aging begin to weigh. Over the years, Walmart has shown that it's more than willing to invest in tech to keep its turf in the retail scene. Apart from its modernization efforts (bolstering e-commerce, delivery, and the Walmart+ service), Walmart seems ready to expand its footprint further. The company recently announced its intention to open 150 new stores over the next five years. As the company bets on brick-and-mortar while continuing to fire on all cylinders on the e-commerce front, Walmart certainly seems like the discount omnichannel retailer to beat. And for that reason, WMT stock may be deserving of a richer multiple than it's currently commanding. At writing, WMT stock trades at a respectable 28.1 times trailing price-to-earnings (P/E), which is on the lower end of the five-year historical average P/E of 32.0 times. Of course, Walmart may not be the digital retailer with the e-commerce edge. That title goes to e-commerce kingpin Amazon.com ( NASDAQ:AMZN ). On the front of brick-and-mortar, one could make a pretty strong argument that rival Costco ( NASDAQ:COST ) has the wind at its back. Have you seen the crowds over at your local Costco lately? They certainly seem larger than over at the local Walmart as bargain-hungry consumers look to fill up their super-sized shopping carts. In any case, Walmart may not be the master of brick-and-mortar or digital, but it seems to have a solid presence in both realms. And for that reason, I consider it one of the more intriguing omnichannel players in mega-cap retail right now. To thrive in the future of retail, I believe you really need to be thriving online and offline. You don't need to be the top dog in either, but it pays dividends to have top-notch presences in both realms. In that regard, Walmart deserves an A-grade and perhaps a multiple that's more in line with some of the pricier retail heavyweights out there. From "Great Value" to AI, There's Plenty to Look Forward To Costco may have the Kirkland Signature private label, which is of great value to consumers. But Walmart has its own label, "Great Value," which has helped consumers save a ton of dough amid the past few years of inflationary pressures. Meanwhile, Walmart has been dabbling with conversational AI to help enrich the overall customer experience. As the company looks to improve upon its label in the post-inflation economy, it's hard not to imagine many consumers sticking with the "Great Value" brand that may just be able to give Kirkland a run for its money. As the company bolsters its digital presence further, it may finally have something over its red-hot rival, Costco. As Walmart continues investing in its robust private labels and AI technologies, the company stands to make it easier for consumers to save money on all their favorite necessities and discretionaries. Is WMT Stock a Buy, According to Analysts? On TipRanks, WMT stock comes in as a Strong Buy. Out of 29 analyst ratings, there are 25 Buys and four Hold recommendations. The average WMT stock price target is $180.14, implying upside potential of 6.8%. Analyst price targets range from a low of $163.00 per share to a high of $210.00 per share. The Bottom Line on Walmart Stock Stash Walmart in the low-tech basket, if you will, but I think it's doing a lot of the same things that helped make its rivals (Costco and Amazon) great. If Walmart can continue improving on the tech front, I have no doubt that it can benefit from a great deal of valuation multiple expansion over the coming years. Disclosure

Monday’s session started lower though the bull made a stand and ended the session fractionally mixed to 1 ¼ cents higher. The new crop contracts were firmer at the close leaving the Mar-Dec spread at 35 cents. USDA flashed a 155k MT corn sale to Mexico for 23/24 delivery this...

Front month soybean futures ended the Monday session with 5 ¼ to 7 ¾ cent losses. Soymeal futures closed with $2.40 to $4.30 gains. Soy oil futures closed with 46 to 60 points higher on the day. The weekly Export Inspections report showed 1.426 MMT (52.4 mbu) of soybeans were...

Front month wheat futures stayed pushing lower as the corn and bean markets recovered at the day session open The SRW market finished with 9 to 9 ½ cent losses. KC HRW futures finished the first trade day of the week with 8 ½ to 11 cent losses. MGE wheat...

Hogs dropped by triple digits to start the week after the strong net buying last week. Futures were down $1.05 to $1.62 on the day. Feb OI was listed at 25k contracts for Monday’s start. USDA’s National Average Base Hog price fell 48 cents on Monday morning to $62.01. The...

Live cattle futures pulled back with triple digit losses of as much as $1.40. Feeders also dropped by $1.85 to $2.05 on the day. USDA confirmed cash business from $173 to $178, citing most action was ~$3 higher near $178. USDA cited good demand for the OKC feeder cattle auction,...

Nearby cotton faded with 7 to 18 point losses on Monday, while the 21 to 34 point gains for new crop. The Mar-Dec spread tightened to 491 points at the close. The Cotlook A Index for 2/2 was 115 points higher at 95.25 cents. USDA’s weekly Cotton Market Review had...

Stock buybacks, or share repurchase programs, are commonly executed by companies to boost shareholder value. 

With the uranium market suddenly suffering from a supply shortage, geothermal energy specialist Ormat Technologies ( NYSE:ORA ) could benefit. Like uranium, geothermal represents a clean source of energy, which stems from heat generated by the earth’s core. Further, this process is renewable, as the heat flowing from the earth’s interior replenishes itself. Still, bearish traders don’t seem to appreciate the narrative. That could be a mistake, given the rising relevance of the industry. Thus, I'm bullish on ORA stock. ORA Stock Can Take Advantage of a Competitive Dilemma According to the International Energy Agency, nuclear power represents “an important low-emission source of electricity, providing about 10% of global electricity generation.” That’s a lot despite the sector’s controversies. In contrast, geothermal energy accounts for about half a percent of renewables-based installed capacity for electricity generation, per the International Renewable Energy Agency. It’s not nothing. However, when stacked against uranium, it’s about as close to nothing as you can get. And on the surface, this narrative didn’t help ORA stock. Coincidentally, Ormat – which specializes in providing alternative and renewable geothermal energy technology – suffered a rough outing last year. Further, ORA is down more than 29% in the past 52 weeks. However, this narrative could change, thanks to a combination of competitive fallout and political realities. First, the uranium market suffered a sudden supply dilemma. In particular, as I mentioned in a previous TipRanks article, Kazatomprom – Kazahkstan’s state uranium company – disclosed that shortages of key materials like sulfuric acid have stymied efforts to produce yellowcake, a type of uranium concentrate powder used in the preparation of uranium fuel. Second, the loss of robust supplies of uranium may have a significant downwind impact on the broader energy ecosystem. After all, global population trends continue to march northward, implying increased consumption. As well, a tight U.S. labor market and a sustained growth trajectory of its economic machinery will likely exacerbate energy resource constraints. However, political and commercial influencers maintain that society must move forward with clean and renewable energy sources. In other words, while “dirty” sources of energy could help address any electricity generation shortfalls, they’re frowned upon. So, while geothermal isn’t exactly a high-volume participant, it could get more of the spotlight due to uranium sector challenges. That should be positive for ORA stock. In addition, the geothermal industry is no slouch. According to MarketsandMarkets, the sector could expand at a compound annual growth rate of 5.9% from 2022 to 2027, reaching a valuation of $9.4 billion. If Ormat could grab a bigger piece of the pie, ORA stock could rise higher. The Market Framework Appears to Favor ORA Stock Nevertheless, the Street doesn’t seem to care too much for ORA stock, likely based on historical trends. While shares had their moment in early 2021, it’s generally been a slog. For example, in the past five years, Ormat only returned shareholders 18%. That’s not exactly compelling stuff. As a result, bearish traders have taken sizable bets against ORA stock. According to an options flow screener – which exclusively filters for big block transactions likely made by institutions – on December 20, a major entity (or entities) sold 1,025 contracts of the Mar 15 ’24 80.00 Call. To be fair, that was a shrewd play because ORA traded for $75.68 at the time of the transaction. Now, ORA stock is near $64, allowing the bears to breathe a sigh of relief. However, what’s interesting is that open interest has continued to rise from the December 20 transaction. That’s a solid indicator that the bears believe more downside is possible. Otherwise, if the pessimists wanted to secure their profits, they would have closed their positions, and that would have resulted in a reduction in open interest. However, if ORA stock continues to fall and the bears prematurely close their position, they would effectively be leaving money on the table. That’s because closing a sold call prior to expiration costs money: a trader would have to pay money for the countervailing transaction (buying calls). In a bid to maximize full profitability, the call writers are holding on. Frankly, that’s risky. By not securing the profits now, the bears are vulnerable to whatever happens in the market. Because anything can happen, they could possibly end up trading profits for losses. Moreover, ORA’s short interest of 7.63% of its float and its short interest ratio of 10.07 days to cover are somewhat elevated. If ORA stock does rise for whatever reason, that could panic the bears who are directly shorting the security. This panic could easily affect the options market, creating a high-risk situation for the pessimists. Hot Multiple Is a Risk Factor to Consider Although ORA stock may be compelling, it’s not a perfect investment. One particular risk factor to consider is its hot multiple. Right now, shares trade at 36.2x trailing-year earnings. While it’s difficult to neatly classify Ormat’s business, it’s related to the renewable utilities sector. However, this industry features an earnings multiple of only 22.8x. Still, with a major power sector facing problems, it could be the geothermal ecosystem’s time to shine. With Ormat’s dominant profile in the space, ORA stock could be due for a comeback. Is ORA Stock a Buy, According to Analysts? Turning to Wall Street, ORA stock has a Moderate Buy consensus rating based on two Buys, four Holds, and zero Sell ratings. The average ORA stock price target is $79.67, implying 24.1% upside potential. The Takeaway: ORA Stock Could Take Advantage of a Competitive Misfortune Although geothermal energy represents only a small portion of the globe’s electricity generation, the sector could get renewed interest due to the uranium sector’s supply shortage. Further, because this industry represents a clean and renewable energy source, Ormat could benefit from political realities. To be fair, ORA stock isn’t trading at a discount. However, short traders may have pushed the needle too far, setting up the possibility of an unexpected bounce back. Disclosure

Following a week highlighted by big tech, this week’s earnings lineup features several top-rated stocks from a variety of sectors.

First Guaranty Bancshares (FGBI) came out with quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for