construction – Page 12

20 AI stocks expected to post the highest compound annual sales growth through 2025

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Things move quickly in the world of artificial intelligence. It is easy to sit back and complain about developments that could be disruptive, but sometimes investors are best served by putting emotions aside and observing new developments and how they affect markets. Could AI developments and related trends make you a lot of money?

Below is a new screen showing a group of AI-oriented companies expected to increase their sales most rapidly through 2025, based on consensus estimates among analysts polled by FactSet. Then we show expected revenue growth rates for the largest AI-oriented companies in the screen.

Over the long haul, many businesses might perform more efficiently by employing AI. Maybe this technology can create an economic revolution similar to the one that moved the majority of the working population away from agricultural labor during the 19th and 20th centuries.

Back in February, we screened 96 stocks held by five exchange-traded funds focused on AI and related industries and listed the 20 that analysts thought would rise the most over the following 12 months.

Three months is a long time for AI, and the shakeout hasn’t even started.

Read: Congress and tech seem open to regulating AI efforts, but that doesn’t mean it will happen

There is no way to predict how politicians will react to perceived or real threats of AI and machine learning. And the largest U.S. tech players are doing everything they can to employ the new technology and remain dominant. But that doesn’t mean they will grow more quickly than smaller AI-focused players.

A new AI stock screen

Once again we will begin a screen with these five ETFs:

The Global X Robotics & Artificial Intelligence ETF
BOTZ,
+0.97%
BOTZ was established 2016 and has $1.8 billion in assets under management. The fund tracks an index of companies listed in developed markets that are expected to benefit from the increased utilization of robotics and AI. There are 44 stocks in the BOTZ portfolio, which is weighted by market capitalization and rebalanced once a year. Its largest holding is Intuitive Surgical Inc.
ISRG,
+0.53%,
which makes up 10% of the portfolio, followed by Nvidia Corp.
NVDA,
+3.30%
at 9.4%.
The iShares Robotics and Artificial Intelligence Multisector ETF
IRBO,
+1.64%
holds 116 stocks that are equal-weighted, as it tracks a global index of companies that derive at east 50% of revenue from robotics or AI, or have significant exposure to related industries. This ETF was launched in 2018 and has $304 million in assets.
The $246 million First Trust Nasdaq Artificial Intelligence & Robotics ETF
ROBT,
+1.83%
has 107 stocks in its portfolio, with a modified weighting based on how directly companies are involved in AI or robotics. It was established in 2018.
The Robo Global Artificial Intelligence ETF
THNQ,
+1.81%
has $26 million in assets and was established in 2020. I holds 69 stocks and isn’t concentrated. It uses a scoring system to weight its holdings by percentage of revenue derived from AI, with holdings also subject to minimum market capitalization and liquidity requirements.
The newest ETF on this list is the WisdomTree Artificial Intelligence and Innovation Fund
WTAI,
+2.42%,
which was established in December and has $13 million in assets and holds 73 stocks in an equal-weighted portfolio. According to FactSet, stocks are handpicked and selected companies “generate at least 50% of their revenue from AI and innovation activities, including those related to software, semiconductors, hardware technology, machine learning and innovative products.”

Altogether and removing duplicates, the five ETFs hold 270 stocks of companies in 23 countries. We first narrowed the list to 197 covered by at least nine analysts and for which consensus sales estimates are available through calendar 2025. We used calendar-year estimates because some companies have fiscal years that don’t match the calendar.

Here are the 20 screened AI-related companies expected by analysts to have the highest compound annual growth rates (CAGR) for sales from 2023 through 2025. Sales estimates are in millions of U.S. dollars. The list also shows which of the above five ETFs holds each stocks.

Company	Ticker	Estimated sales – 2023 ($mil)	Estimated sales – 2024 ($mil)	Estimated sales – 2025 ($mil)	Two-year estimated sales CAGR through 2025	Held by
BioXcel Therapeutics Inc.	BTAI, -2.47%	$5	$39	$121	411.5%	WTAI
Luminar Technologies Inc. Class A	LAZR, +8.82%	$86	$266	$588	161.0%	ROBT, WTAI
BlackBerry Ltd.	BB, +6.01%	$685	$769	$1,925	67.6%	ROBT
Credo Technology Group Holding Ltd.	CRDO, +10.29%	$183	$259	$363	40.9%	IRBO
SentinelOne Inc. Class A	S, +1.05%	$619	$881	$1,176	37.9%	WTAI
Wolfspeed Inc.	WOLF, +5.02%	$982	$1,323	$1,860	37.6%	WTAI
SK hynix Inc.	000660, +1.66%	$18,319	$27,899	$34,542	37.3%	WTAI
Mobileye Global Inc. Class A	MBLY, +1.67%	$2,109	$2,782	$3,920	36.3%	ROBT, WTAI
Snowflake Inc. Class A	SNOW, +1.42%	$2,811	$3,863	$5,139	35.2%	IRBO, THNQ, WTAI
Lemonade Inc.	LMND, +8.08%	$395	$471	$712	34.2%	THNQ, WTAI
Nio Inc. ADR Class A	NIO, +1.39%	$11,874	$16,733	$21,304	33.9%	ROBT
Stem Inc.	STEM, +4.88%	$607	$833	$1,055	31.8%	WTAI
Upstart Holdings Inc.	UPST, +10.37%	$547	$768	$938	31.0%	BOTZ, WTAI
Cloudflare Inc. Class A	NET, +5.84%	$1,284	$1,669	$2,194	30.7%	THNQ
Samsara Inc. Class A	IOT, +1.42%	$830	$1,062	$1,364	28.2%	THNQ
Ambarella Inc.	AMBA, +3.45%	$287	$355	$472	28.2%	IRBO, ROBT, THNQ, WTAI
iflytek Co. Ltd. Class A	002230, -1.34%	$3,561	$4,582	$5,851	28.2%	THNQ
Tesla Inc.	TSLA, +4.41%	$99,558	$128,412	$161,061	27.2%	ROBT, THNQ, WTAI
CrowdStrike Holdings Inc. Class A	CRWD, +2.40%	$2,935	$3,793	$4,739	27.1%	THNQ, WTAI
PB Fintech Ltd.	543390, +1.39%	$358	$462	$573	26.5%	IRBO
Source: FactSet

Click the tickers for more about each company or ETF.

Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote pages.

We have screened for expected revenue growth, rather than for earnings or cash flow, because in a newer tech-oriented business area, investors are most likely to consider the top line as companies sacrifice profits to build market share.

It is important to do your own research if you consider purchasing any individual stock, to form your own opinion about a company’s ability to remain competitive over the long term. Starting from the top of the list, BioXcel Therapeutics Inc.
BTAI,
-2.47%
is expected to show exponential sales growth, but that is from a low expected baseline this year.

What about the largest AI-related companies held by these ETFs?

Here are the largest 20 companies in the screen by market capitalization, ranked by expected sales CAGR from 2022 through 2025. Once again the sales estimates are in millions of U.S. dollars, but the market caps are in billions.

Company	Ticker	Estimated sales – 2023 ($mil)	Estimated sales – 2024 ($mil)	Estimated sales – 2025 $mil)	Two-year estimated sales CAGR through 2025	Market Cap ($bil)	Held by
Tesla Inc.	TSLA, +4.41%	$99,558	$128,412	$161,061	27.2%	$528	ROBT, THNQ, WTAI
Nvidia Corp.	NVDA, +3.30%	$29,839	$36,877	$46,154	24.4%	$722	BOTZ, IRBO, ROBT, THNQ, WTAI
Taiwan Semiconductor Manufacturing Co. Ltd. ADR	TSM, +5.83%	$71,434	$86,284	$101,112	19.0%	$445	ROBT, WTAI
Advanced Micro Devices Inc.	AMD, +2.23%	$22,976	$26,823	$30,359	15.0%	$163	IRBO, ROBT, THNQ, WTAI
ASML Holding NV ADR	ASML, +2.83%	$28,974	$32,374	$37,796	14.2%	$263	THNQ, WTAI
Microsoft Corp.	MSFT, +0.95%	$223,438	$251,028	$282,397	12.4%	$2,318	IRBO, ROBT, THNQ, WTAI
Samsung Electronics Co. Ltd.	005930, -0.61%	$200,595	$227,286	$252,129	12.1%	$292	IRBO, WTAI
Amazon.com Inc.	AMZN, +1.85%	$559,438	$626,549	$702,395	12.1%	$1,164	IRBO, ROBT, THNQ, WTAI
Adobe Inc.	ADBE, +3.34%	$19,470	$21,784	$24,276	11.7%	$158	IRBO, THNQ
Netflix Inc.	NFLX, +1.86%	$33,915	$38,067	$42,275	11.6%	$148	IRBO, THNQ
Tencent Holdings Ltd.	700, -0.58%	$88,727	$99,212	$110,556	11.6%	$422	IRBO, ROBT
Salesforce Inc.	CRM, +2.37%	$34,392	$38,273	$42,786	11.5%	$205	IRBO, THNQ
Alphabet Inc. Class A	GOOGL, +1.11%	$299,810	$333,077	$369,195	11.0%	$710	IRBO, ROBT, THNQ, WTAI
Intel Corp.	INTC, -1.20%	$51,060	$57,799	$62,675	10.8%	$122	IRBO, ROBT
Meta Platforms Inc. Class A	META, +1.53%	$125,901	$139,545	$154,259	10.7%	$528	IRBO, WTAI
Alibaba Group Holding Ltd. ADR	BABA, +2.17%	$134,140	$148,206	$162,199	10.0%	$235	ROBT, THNQ
Texas Instruments Inc.	TXN, +1.20%	$17,941	$19,433	$20,799	7.7%	$148	IRBO
Apple Inc.	AAPL, +0.36%	$390,845	$416,761	$445,956	6.8%	$2,706	IRBO, WTAI
Siemens Aktiengesellschaft	SIE, +2.55%	$84,681	$89,145	$93,925	5.3%	$130	ROBT
Johnson & Johnson	JNJ, -0.20%	$98,761	$100,990	$103,870	2.6%	$414	ROBT
Source: FactSet

Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.

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May 17, 2023

Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.

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When investors think of technology stocks, they might automatically gravitate toward “the next big thing,” or to the giant companies that dominate the S&P 500
SPX,
-0.40%.
But Robert Stimson, chief investment officer of Oak Associates Funds, makes a case for diversification through exposure to smaller innovators which he believes are “overlooked in this environment.”

The River Oak Discovery Fund
RIVSX,
+0.98%
invests in tech-oriented companies with market capitalizations of $5 billion or less, with an average of about $2 billion. It has a five-star rating, the highest, from Morningstar, despite having what the investment information firm considers “above average” annual expenses of 1.19% of assets under management. The fund is ranked in the 6th percentile among 546 funds in Morningstar’s “Small Blend” category for five-year performance and in the 13th percentile among 374 funds for 10-year performance. The performance comparisons are net of expenses.

The Black Oak Emerging Technologies Fund
BOGSX,
+1.54%
has more of a midcap focus, with some small-cap stocks and follows a similar strategy to that of RIVSX. But with no restriction on the size of companies this fund invests in, “we don’t have to sell stocks,” Stimpson said. So long-term holdings of this fund include Apple Inc.
AAPL,
-0.05%
and Salesforce.com Inc.
CRM,
+0.69%.
This fund is rated three stars within Morningstar’s “Technology” category and has a lower expense ratio of 1.03%.

Both funds are concentrated. The River Oak Discovery Fund held 34 stocks and the Black Oak Emerging Technologies Fund held 35 stocks as of March 31. Lists of both funds’ largest holdings are below.

During an Interview, Stimpson, who co-manages both funds, said that when investing in the small-cap technology space, he and colleagues identify companies that are “focused on niches.

“I want a company that knows who they are, what they do and do it well, rather than a small company trying to growing into the next Microsoft, Google or Salesforce,” he said.

More about giant companies dominating stock indexes: This twist on a traditional S&P 500 stock fund can lower your risk and still beat the market overall

Stimpson said Oak Associates pays close attention to what corporate management teams say during earnings calls and in presentations, preferring comments related to improving sales and operations with a market niche, rather than expressions of grand visions for exponential growth.

That type of narrow focus can support higher valuations over time, Stimpson said. “They have better execution, a better ability to fend-off competition and they are quality acquisition candidates.”

“ “I caution everyone that until there is revenue, earnings and a product, the hype can be more dangerous than an opportunity.” ”

— Robert Stimpson, chief investment officer at Oak Funds, when discussing AI and ChatGPT.

All of those factors can be important to investors, considering how easily tech giants such as Microsoft Corp.
MSFT,
+1.00%
or Google holding company Alphabet Inc.
GOOGL,
+2.89%

GOOG,
+2.88%
can begin to compete with smaller innovative companies because they can afford to make such large investments, he said.

Simpson went further, saying that when running screens for “quality” metrics, such as improving free cash flow yields, the Oak Associates team also looks for “shareholder friendly practices.” For example, a company may be repurchasing shares. But are the buybacks lowering the share count significantly (which boosts earnings per share) or are they merely mitigating the dilution caused by the shoveling of new shares to executives as part of their compensation?

Finally, Simpson cautioned investors not to get caught up in tech-focused hype.

“When I talk to our clients, I get questions about AI and ChatGPT and how to play it. People get focused on a new great tech innovation,” he said. “You can replace ChatGPT with bitcoin, metaverse or 3-D printing.”

“I caution everyone that until there is revenue, earnings and a product, the hype can be more dangerous than an opportunity.”

Two examples

These companies are held by theRiver Oak Discovery Fund and the Black Oak Emerging Technologies Fund.

Cirrus Logic Inc.
CRUS,
-2.37%
is the largest holding of the River Oak Discovery Fund. Stimpson calls the company “a derivative play on the success of Apple.”

“They are focused on the chips that go into mobile and [vehicles],” as well as the needs of their customers, including Apple, “rather than problem areas of the chip sector, such as memory or PCs. They are not talking about chips for AI, for example,” Stimpson said.

Cirrus focuses on systems and related software used in audio systems..

Kulicke & Soffa Industries Inc.
KLIC,
+1.92%
makes equipment, tools and related software used by a variety of manufacturers of computer chips and integrated electronic devices.

Stimpson likes the company as a long-term play on the worldwide disruption in semiconductor manufacturing and supply, in the wake of the Covid-19 pandemic. “All chip companies learned that any supply disruption in Southeast Asia is a problem. Over time, the opportunities for semiconductor equipment makers are very good. There will be more plants in more locations, so more equipment,” he said.

He said KLICK was in a “protected” position, with returns on equity of about 20% and free cash flow yields of about 10%.

Top holdings of the funds

Here are the largest 10 holdings of the River Oak Discovery Fund as of March 31:

Company	Ticker	% of portfolio
Cirrus Logic Inc.	CRUS, -2.37%	4.9%
Kulicke & Soffa Industries Inc.	KLIC, +1.92%	4.6%
Advanced Energy Industries Inc.	AEIS, +0.30%	4.5%
Cohu Inc.	COHU, +1.45%	3.7%
Asbury Automotive Group Inc.	ABG, -1.75%	3.7%
Korn Ferry	KFY, -0.96%	3.6%
Kforce Inc.	KFRC, -2.40%	3.4%
Ambarella Inc.	AMBA, -0.50%	3.3%
Applied Industrial Technologies Inc.	AIT, -1.71%	3.3%
Perficient Inc.	PRFT, +0.72%	3.2%

Click on the tickers for more about each company.

Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

Here are the largest 10 holdings of the Black Oak Emerging Technology Fund as of March 31:

Company	Ticker	% of portfolio
Apple Inc.	AAPL, -0.05%	5.7%
KLA Corp.	KLAC, +1.69%	4.6%
Advanced Energy Industries Inc.	AEIS, +0.30%	4.5%
Cohu Inc.	COHU, +1.45%	4.1%
SolarEdge Technologies Inc.	SEDG, -3.76%	3.9%
Cirrus Logic Inc.	CRUS, -2.37%	3.9%
Cohu Inc.	COHU, +1.45%	3.9%
Ambarella Inc.	AMBA, -0.50%	3.4%
Applied Industrial Technologies Inc.	AIT, -1.71%	3.4%
Salesforce Inc.	CRM, +0.69%	3.3%

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May 16, 2023

Walmart, Alibaba, Target, and More Stocks to Watch This Week

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Walmart, Alibaba, Target, and More Stocks to Watch This Week

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May 14, 2023

Dow posts 4-day decline as regional-bank woes resurface

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U.S. stocks ended mostly lower on Thursday, with the Dow booking a fourth day in a row of losses, as selling pressures returned to shares of regional banks. The Dow Jones Industrial Average
DJIA,
-0.66%
shed about 221 points, or 0.7%, ending near 33,310, according to preliminary FactSet data. The S&P 500 index
SPX,
-0.17%
fell about 0.2%, while the Nasdaq Composite Index
COMP,
+0.18%
closed 0.2% higher. Disappointing earnings from Disney Co.
DIS,
-8.73%
tied to its streaming business helped drag down the blue-chip Dow, while shares of PacWest Bancorp
PACW,
-22.70%
fell more than 20% after it disclosed a 9.5% decline in deposits in recent weeks. Short-term rates remained volatile on Thursday as investors hoped for progress on the debt-ceiling stalemate in Washington D.C. The 2-year Treasury
TMUBMUSD02Y,
3.891%
was pegged at 3.906%, up four of the past five trading days, according to Dow Jones Market Data. The 6-month Treasury bill was at 5.11%.

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May 11, 2023

Fluor (NYSE:FLR) Updates FY23 Earnings Guidance

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Fluor (NYSE:FLR – Get Rating) issued an update on its FY23 earnings guidance on Friday morning. The company provided earnings per share guidance of $1.50-$1.90 for the period, compared to the consensus earnings per share estimate of $1.65.

Fluor Stock Performance

Fluor stock opened at $27.21 on Monday. The firm’s fifty day moving average price is $30.98 and its 200-day moving average price is $33.05. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.57 and a current ratio of 1.57. The stock has a market cap of $3.84 billion, a P/E ratio of -73.54, a price-to-earnings-growth ratio of 0.64 and a beta of 2.27. Fluor has a fifty-two week low of $21.67 and a fifty-two week high of $38.20.

Fluor (NYSE:FLR – Get Rating) last posted its quarterly earnings data on Friday, May 5th. The construction company reported $0.28 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.09). The company had revenue of $3.75 billion for the quarter, compared to analysts’ expectations of $3.53 billion. Fluor had a net margin of 1.06% and a return on equity of 8.49%. The business’s quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.16 EPS. On average, equities research analysts expect that Fluor will post 1.69 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

FLR has been the topic of several research reports. Robert W. Baird lowered their price objective on shares of Fluor from $43.00 to $40.00 in a research report on Monday. StockNews.com initiated coverage on shares of Fluor in a research report on Thursday, March 16th. They issued a hold rating on the stock. Finally, Credit Suisse Group lifted their target price on shares of Fluor from $31.00 to $33.00 and gave the stock a neutral rating in a research report on Wednesday, February 22nd. Five analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of Hold and a consensus target price of $34.86.

Insider Buying and Selling

In other Fluor news, insider James R. Breuer sold 4,000 shares of the business’s stock in a transaction dated Friday, March 3rd. The shares were sold at an average price of $37.81, for a total value of $151,240.00. Following the transaction, the insider now owns 41,742 shares in the company, valued at $1,578,265.02. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Fluor

A number of hedge funds have recently modified their holdings of the company. Alliancebernstein L.P. increased its position in shares of Fluor by 76.0% in the fourth quarter. Alliancebernstein L.P. now owns 3,225,956 shares of the construction company’s stock valued at $111,812,000 after acquiring an additional 1,392,572 shares during the period. State of Wyoming bought a new stake in shares of Fluor during the 4th quarter valued at about $113,000. CI Private Wealth LLC bought a new stake in shares of Fluor during the 4th quarter valued at about $514,000. Metropolitan Life Insurance Co NY boosted its stake in shares of Fluor by 3.5% during the 4th quarter. Metropolitan Life Insurance Co NY now owns 8,740 shares of the construction company’s stock valued at $303,000 after purchasing an additional 292 shares in the last quarter. Finally, Cerity Partners LLC boosted its stake in shares of Fluor by 12.4% during the 4th quarter. Cerity Partners LLC now owns 17,936 shares of the construction company’s stock valued at $622,000 after purchasing an additional 1,983 shares in the last quarter. Hedge funds and other institutional investors own 94.28% of the company’s stock.

About Fluor

(Get Rating)

Fluor Corp. operates as a holding company. The firm engages in the provision of engineering, procurement, construction, fabrication and modularization, operations, maintenance and asset integrity, as well as project management services, on a global basis. It operates through the following segments: Energy & Chemicals, Mining & Industrial, Infrastructure & Power, Diversified Services and Government.

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Earnings History and Estimates for Fluor (NYSE:FLR)

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May 8, 2023

6 Companies That Raised Their Dividends This Week

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May 6, 2023

TripAdvisor lawsuit highlights companies moving to Nevada from Delaware

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A lawsuit filed in Delaware in April against the travel site Tripadvisor and its majority shareholder is highlighting what may be a growing trend: companies seeking to shift their incorporations to Nevada to avoid Delaware’s more stringent and entrenched legal standards.

The suit was filed on behalf of a group of Tripadvisor Inc. TRIP shareholders, who are hoping to persuade the Delaware Chancery Court to stop the company from pushing ahead with board-approved plans to reincorporate in Nevada, arguing their motive is to take…

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May 1, 2023

South Dakota Investment Council Cuts Position in Meritage Homes Co. (NYSE:MTH)

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South Dakota Investment Council trimmed its stake in Meritage Homes Co. (NYSE:MTH – Get Rating) by 2.3% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 85,966 shares of the construction company’s stock after selling 2,038 shares during the period. South Dakota Investment Council’s holdings in Meritage Homes were worth $7,926,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of MTH. Bailard Inc. bought a new stake in shares of Meritage Homes during the 4th quarter worth approximately $267,000. Watershed Asset Management L.L.C. lifted its stake in shares of Meritage Homes by 5.6% during the 3rd quarter. Watershed Asset Management L.L.C. now owns 3,590 shares of the construction company’s stock worth $252,000 after acquiring an additional 190 shares during the last quarter. 180 Wealth Advisors LLC lifted its stake in shares of Meritage Homes by 37.2% during the 4th quarter. 180 Wealth Advisors LLC now owns 5,701 shares of the construction company’s stock worth $603,000 after acquiring an additional 1,546 shares during the last quarter. Greenhaven Associates Inc. lifted its stake in shares of Meritage Homes by 3.4% during the 4th quarter. Greenhaven Associates Inc. now owns 819,751 shares of the construction company’s stock worth $75,581,000 after acquiring an additional 26,766 shares during the last quarter. Finally, Carlson Capital L P lifted its stake in shares of Meritage Homes by 3.0% during the 3rd quarter. Carlson Capital L P now owns 153,045 shares of the construction company’s stock worth $10,754,000 after acquiring an additional 4,486 shares during the last quarter. 95.63% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on MTH shares. Wedbush reissued an “outperform” rating and set a $132.00 price target on shares of Meritage Homes in a research note on Wednesday, April 12th. JPMorgan Chase & Co. raised Meritage Homes from a “neutral” rating to an “overweight” rating and set a $129.00 target price for the company in a research report on Monday, March 6th. Credit Suisse Group lifted their target price on Meritage Homes from $106.00 to $130.00 and gave the company an “outperform” rating in a research report on Friday, February 3rd. The Goldman Sachs Group lifted their target price on Meritage Homes from $87.00 to $103.00 and gave the company a “neutral” rating in a research report on Thursday, January 12th. Finally, StockNews.com upgraded Meritage Homes from a “hold” rating to a “buy” rating in a report on Thursday. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $115.14.

Meritage Homes Stock Up 4.8 %

Shares of MTH stock opened at $128.05 on Monday. Meritage Homes Co. has a 1-year low of $62.51 and a 1-year high of $130.68. The stock’s fifty day moving average price is $114.50 and its 200 day moving average price is $99.14. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.89 and a quick ratio of 1.72. The company has a market cap of $4.71 billion, a price-to-earnings ratio of 5.23 and a beta of 1.58.

Meritage Homes (NYSE:MTH – Get Rating) last announced its earnings results on Wednesday, April 26th. The construction company reported $3.54 earnings per share for the quarter, topping the consensus estimate of $2.51 by $1.03. Meritage Homes had a return on equity of 23.99% and a net margin of 14.44%. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same period in the previous year, the business earned $5.79 EPS. The firm’s revenue for the quarter was down .6% on a year-over-year basis. On average, research analysts expect that Meritage Homes Co. will post 13.07 earnings per share for the current fiscal year.

Meritage Homes Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 31st. Shareholders of record on Wednesday, March 15th were given a dividend of $0.27 per share. The ex-dividend date was Tuesday, March 14th. This represents a $1.08 dividend on an annualized basis and a yield of 0.84%. Meritage Homes’s dividend payout ratio is currently 4.41%.

Insiders Place Their Bets

In other Meritage Homes news, CAO Alison Sasser sold 345 shares of Meritage Homes stock in a transaction dated Tuesday, February 14th. The stock was sold at an average price of $114.16, for a total transaction of $39,385.20. Following the completion of the sale, the chief accounting officer now owns 880 shares of the company’s stock, valued at approximately $100,460.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other Meritage Homes news, CAO Alison Sasser sold 345 shares of Meritage Homes stock in a transaction dated Tuesday, February 14th. The stock was sold at an average price of $114.16, for a total transaction of $39,385.20. Following the completion of the sale, the chief accounting officer now owns 880 shares of the company’s stock, valued at approximately $100,460.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Clinton Szubinski sold 776 shares of Meritage Homes stock in a transaction dated Tuesday, February 14th. The stock was sold at an average price of $114.16, for a total value of $88,588.16. Following the sale, the chief operating officer now directly owns 3,615 shares of the company’s stock, valued at approximately $412,688.40. The disclosure for this sale can be found here. In the last 90 days, insiders sold 11,683 shares of company stock valued at $1,290,994. 2.00% of the stock is owned by company insiders.

About Meritage Homes

(Get Rating)

Meritage Homes Corp. engages in the design and construction of single family attached and detached homes. It operates through the Homebuilding and Financial Services segments. The Homebuilding segment acquires and develops lands, constructs homes, markets and sells those homes, and provides warranty and customer services.

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Want to see what other hedge funds are holding MTH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meritage Homes Co. (NYSE:MTH – Get Rating).

Institutional Ownership by Quarter for Meritage Homes (NYSE:MTH)

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May 1, 2023

Moody’s Downgrades 11 Regional Banks, Including Zions, U.S. Bank, Western Alliance

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Moody’s Downgrades 11 Regional Banks, Including Zions, U.S. Bank, Western Alliance

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April 21, 2023

S&P 500 ekes out gain, stocks drift as earnings pick up

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U.S. stocks drifted, closing mostly lower on Tuesday, as investors waited for earnings season to gather more steam. The Dow Jones Industrial Average
DJIA,
-0.03%
ended down 10 points, or less than 0.1%, near 33,976, while the S&P 500 index
SPX,
+0.09%
gained 0.1%, according to preliminary figures from FactSet. The Nasdaq Composite Index
COMP,
-0.04%
fell less than 0.1%. Bank of America
BAC,
+0.63%
and Goldman Sachs
GS,
-1.70%
were among the major banks to report quarterly results, while streaming giant Netflix Inc.
NFLX,
+0.29%
was on deck after the bell. It is ending its red-envelope DVD rental service after 25 years. Investors also heard Tuesday from several more staffers at the Federal Reserve, with Atlanta Fed President Raphael Bostic telling Reuters that he expects one more rate hike, but for the Fed’s policy rate to stay higher for awhile. Continued gridlock in Washington on the debt-ceiling stalemate also has been coming into focus for markets. BlackRock also sold the first batch of seized assets from Silicon Valley Bank and Signature Bank, which fetched about 85 cents to 90 cents on the dollar.

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April 18, 2023

Employees asked about their canceled bonuses. The CEO warned them against living in ‘Pity City.’

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The chief executive of the high-end office-furniture company MillerKnoll has gone viral. And probably not in a manner she would prefer.

In a leaked Zoom call of a MillerKnoll staff town hall last month, CEO Andi Owen addressed concerns from employees about the company’s decision to withhold bonuses. It quickly descended into her lambasting staff for complaining about the move.

“Questions came through about, ‘How can we stay motivated if we’re not going to get a bonus?‘ ” she says in the meeting recording. Owen — tapped in 2021 by Fast Company as one of the most creative people in business and celebrated that same year in the New York Times for her navigation of the coronavirus pandemic and swing-state sociopolitics — tells employees of the Zeeland, Mich., company to focus on things the company can control, such as customer service.

From the archives (April 2021): Herman Miller and Knoll to merge in $1.8 billion deal that will create design leader as companies reimagine office

“Don’t ask about: What are we going to do if we don’t get a bonus?” she says, growing animated, even, apparently, agitated. “Get the damn $26 million. Spend your time and your effort thinking about the $26 million we need and not thinking about what you’re going to do if you don’t get a bonus. All right? Can I get some commitment for that? I would appreciate that.”

Though she didn’t specifically identify the significance of the $26 million figure, the company’s operating expenses rose by exactly that amount in its third quarter due to “voluntary and involuntary reductions in the company’s workforce and charges for the impairment of assets associated with the decision to cease operating fully as a stand-alone brand.”

MillerKnoll’s third-quarterly filing showed that the furniture maker — the product of a 2021 merger of the Herman Miller and Knoll brands, behind products such as the Eames lounge chair and the Saarinen Tulip table, respectively — expects lower sales in the fourth quarter after posting a decline in orders and sales margins in the three months ending March 4.

Owen recalls in the video that a past employer told her, “You can visit Pity City, but you can’t live there.”

“So, people, leave Pity City,” she continues, exclaiming: “Let’s get it done.”

“You have to be a psychopath to say this stuff to your employees when you are taking a massive bonus. Does she think they won’t find out?” asked one Twitter user.

“Plenty going on here but one of many things that leapt out to me was that mere moments after she went with the ‘be kind to people’ bit, she was yelling at workers,” another said.

The company said that the widely shared video clip had been taken out of context.

“Andi fiercely believes in this team and all we can accomplish together, and will not be dissuaded by a 90-second clip taken out of context and posted on social media,” a spokesman said in a statement.

Owen made $5 million last year. The company has yet to say how much she will make this year. The company this year has expensed $15.7 million in stock-based compensation.

MillerKnoll shares
MLKN,
-2.38%
have dropped 12% in 2023, compared with the 8% gain for the benchmark S&P 500
SPX,
+0.02%.

Other MillerKnoll brands include Design Within Reach, acquired by Herman Miller a decade ago and recognized as having made the iconic midcentury designs of Charles and Ray Eames, Isamu Noguchi, George Nelson, and others available to a wider, if affluent, audience without engaging an interior designer; the Danish design brand Hay; and Holly Hunt.

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April 18, 2023

10 dividend stocks yielding at least 4.5% that are rated ‘buy’ by most analysts

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During a period of high interest rates, it might be more difficult to impress investors with dividend stocks. But the stocks can have an important advantage over the long term. The dividend payouts can increase over the years, helping to push share prices higher over time.

When considering stocks for dividend income, yield shouldn’t be the only thing you consider. If a stock’s price has tumbled because investors are worried about the company’s business prospects, the dividend yield might be very high. A double-digit yield might mean investors expect to see a cut to the dividend soon.

There are many ways to look at companies’ expected ability to maintain or raise their dividend payouts. But one can also take a simple approach to begin researching stock choices.

At the moment, you can get a bank CD with a yield of close to 5% pretty easily. Here’s a look at current yields for CDs and U.S. Treasury securities and an approach for laddering them not only to protect your cash but to hedge against interest-rate risk.

For investors who would rather aim for long-term growth to go along with dividend income, or take a relatively conservative approach to growth while reinvesting dividends, a screen of stocks in the S&P 500
SPX,
+0.33%
produces only 10 stocks with dividend yields of 4.5% or higher with majority “buy” or equivalent ratings among analysts polled by FactSet. Here they are, sorted by dividend yield:

Company	Ticker	Dividend Yield	Expected payout increase through 2025	Share “buy” ratings	April 16 price	Consensus price target	implied 12-month upside potential
Comerica Inc.	CMA, +4.00%	6.56%	10%	58%	$43.30	$60.53	40%
Citizens Financial Group Inc.	CFG, +4.19%	5.77%	12%	74%	$29.10	$39.29	35%
Healthpeak Properties Inc.	PEAK, +2.33%	5.71%	9%	60%	$21.01	$27.69	32%
Hasbro Inc.	HAS, +1.28%	5.34%	8%	69%	$52.40	$69.27	32%
Philip Morris International Inc.	PM, +0.46%	5.11%	11%	67%	$99.48	$113.56	14%
Realty Income Corp.	O, +1.30%	5.04%	7%	56%	$60.77	$70.00	15%
Fifth Third Bancorp	FITB, +3.33%	4.99%	3%	72%	$26.44	$34.55	31%
VICI Properties Inc.	VICI, +1.58%	4.82%	12%	95%	$32.35	$37.73	17%
Organon & Co.	OGN, +1.01%	4.71%	5%	55%	$23.80	$31.89	34%
Iron Mountain Inc.	IRM, +0.82%	4.69%	15%	78%	$52.76	$56.00	6%
Source: FactSet

Click on the ticker for more about each company.

Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

The dividend yields for this group of 10 companies are based on current annual regular payout rates, with all paying quarterly except for Realty Income Corp.
O,
+1.30%,
which pays monthly.

These two oil and natural gas producers would have passed the above screen based on their most recent dividend payments and analysts’ sentiment, however, they pay a combined fixed-plus-variable dividend every quarter, with the fixed portion relatively low:

Shares of Pioneer Natural Resources Co.
PXD,
-0.77%
closed at $230 on April 14. Among analysts polled by FactSet, 59% rate the stock a “buy” or the equivalent, and the consensus price target is $257.42. The company pays a fixed quarterly dividend of $1.10 a share, which would make for a dividend yield of only 1.91%. However, the most recent variable quarterly dividend was $4.48 a share, for a combined quarterly dividend of $5.58, which would translate to an annualized dividend yield of 9.70%. The consensus estimate for dividends in 2025 is $4.63 — the analysts are only estimating the fixed portion of the dividend. Pioneer has held preliminary merger discussions with Exxon Corp.
XOM,
-1.16%,
according to a Wall Street Journal report.
Devon Energy Corp.’s
DVN,
-0.72%
stock closed at $55.70 on April 14. The shares are rated “buy” or the equivalent by 55% of analysts and the consensus price target is $67.66. The fixed portion of Devon’s quarterly dividend is 20 cents a share, for an annualized dividend yield of 1.44%. The variable portion of the most recent quarterly dividend was 69 cents a share. The total payout of 89 cents would make for an annual dividend yield of 6.39%. Analysts expect the fixed portion of annual dividends to total $3.61 in 2025, according to FactSet.

Don’t miss: Buffett is buying in Japan. This overseas value-stock fund is also making bets there. Is it a good way to diversify?

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April 17, 2023

American Track Acquires Universal Rail Systems and Establishes North American Rail Solutions

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FORT WORTH, Texas, April 17, 2023 (Newswire.com)
–
As a leading provider of inspection, maintenance, repair and specialized construction services for railroad infrastructure in the United States, American Track Services (“ATS”) is proud to announce the acquisition of Universal Rail Systems (“URS”) in Canada and the creation of a new parent company, North American Rail Solutions.

With the establishment of North American Rail Solutions, the two existing brands will operate under a consolidated umbrella, with ATS serving customers in the United States and URS serving customers in Canada. ATS and URS will remain focused on quality service while continuing to increase their geographic reach and combining their capabilities to deliver an industry-leading suite of solutions and services in both countries. The North American Rail Solutions brands partner with organizations of all sizes and across all industries to help them build and strengthen their rail transportation infrastructure to support operational growth.

Following this transaction, Thomas Lucario, current Chief Executive Officer of American Track Services, will serve as CEO for North American Rail Solutions, ATS, and URS. Ken Reger will serve as CFO. Tim McMillan will serve as President and COO of URS, lead operations in Canada, and will join the Board of Directors of North American Rail Solutions.

“The creation of North American Rail Solutions along with the consolidation of American Track Services and Universal Rail Systems will create increased capabilities that are unmatched in the industry,” said Thomas Lucario, CEO of American Track Services. As a team of proactive experts with unparalleled industry experience, we are able to deliver the largest and most trusted rail services platform in North America. With this acquisition, we can now leverage our combined size and suite of services to support our partners and customers whenever and wherever they need us. The URS team has consistently provided excellent service and have proven themselves as the industry leader in Canada. ATS and URS share a common culture centered on customer service, quality, and responsiveness both internally and externally. We are proud to welcome Tim McMillan and the entire URS team into the North American Rail Solutions and American Track Services family.”

Tim McMillan, President and COO for URS added: “We are excited to partner with the ATS team to create the newly formed North American Rail Solutions. Our combined experience, resources, and scale will enable us to provide our customers with the highest level of service throughout North America. We very much look forward to this next chapter of growth in our business.”

In 2021, DFW Capital Partners acquired American Track Services and has assisted with an aggressive strategy to grow the organization organically and through acquisition. Operating from 12 full-service offices in strategically located U.S. markets, the company provides mission-critical services to its customers that ensure the safety, compliance, operability, and flexibility of onsite railway assets. American Track Services serves a wide range of industries, including manufacturing, petrochemical, mining, agricultural products, food and beverage, basic raw materials, ports, transload facilities, and short-line railroads.

Keith Pennell, Managing Partner of DFW Capital Partners, added: “Less than 18 months after our original investment in American Track Services, we have become the leading North American provider of rail inspection, maintenance, repair, and niche construction services to industrial customers. With the addition of Universal Rail Systems, we will not only broaden our footprint into Canada, but build upon established relationships and proven capabilities in the Class 1 and transit segments – all while partnering with a first-class team of industry veterans. We are excited to welcome the entire URS organization under the new North American Rail Solutions umbrella!”

ATS acquired URS from an investor group led by TorQuest Partners (“TorQuest”). TorQuest’s Mike Salisbury stated: “We are proud of the partnership we have built with the URS management team over the years and wish them continued success in this new chapter with North American Rail Solutions.”

URS was represented in the process by Northborne Partners and Lazard. Affiliates of DFW Capital Partners made an additional equity investment in the company, coupled with support from ATS’ existing lender, PineBridge Investments. Financial terms of the transaction are not being disclosed.

North American Rail Solutions

Headquartered in Fort Worth, Texas, North American Rail Solutions is an international railroad services organization serving clientele across the continent. The organization’s unmatched reach is supported by an interconnected network of entrenched local offices and entities, enabling the team to respond to any railroad issue, anywhere within the United States or Canada. North American Rail Solutions (www.NorthAmericanRailSolutions.com) is a portfolio company of DFW Capital Partners.

American Track Services

Headquartered in Fort Worth, Texas, American Track Services is the leading independent provider of turnkey railroad design, repair, maintenance, construction, inspection, and terminal services for critical rail infrastructure at industrial, short-line, municipal, and logistics sites in the United States. www.AmericanTrack.com

Universal Rail Systems

Headquartered in Edmonton, Alberta, Universal Rail Systems is the leading railway infrastructure service provider in Canada, operating out of 12 locations across Canada from West coast to East Coast. URS is the largest provider of industrial rail inspection, maintenance, construction and terminal services in Canada. In addition, URS provides Class I and Transit customer support services including construction, flagging, signals, and ticketing. www.universalrail.com

DFW Capital Partners

DFW Capital Partners is a private equity investment firm focused on lower middle-market companies. With ~$2 billion under management, the firm concentrates on service companies, with an emphasis on outsourced business and industrial support services, and healthcare companies. DFW has established a 20+ year track record of success in both building leading companies and recognizing attractive returns for its investors. DFW is headquartered in Teaneck, New Jersey and maintains an office in Chevy Chase, Maryland. Additional information is available on DFW’s website at www.dfwcapital.com.

TorQuest Partners

Founded in 2002, TorQuest Partners is a Canadian-based manager of private equity funds. With more than C$3.5 billion of equity capital under management, TorQuest is currently investing from TorQuest Partners Fund V, a C$1.4 billion fund that closed in March 2020. TorQuest invests in middle market companies and works in close partnership with management to build value. To learn more about TorQuest, please visit www.torquest.com.

Source: American Track

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April 17, 2023

Why 5% interest rates might not derail the stock market or the U.S. economy

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Here’s a thought for investors: If the Federal Reserve raises interest rates to 5% or more would that wreck the economy and stock prices ?

The U.S. stock market has been rallying to start 2023, clawing back a big chunk of the painful losses from a year ago. The bullish tone has been linked to a view that the Federal Reserve will need to cut interest rates this year to prevent a recession, reversing one of its quickest rate-increasing campaigns in history.

Doomsday investors, including hedge-fund billionaire Paul Singer, have been warning against that outcome. Singer thinks a credit crunch and deep recession may be necessary to purge dangerous levels of froth in markets after an era of near-zero interest rates.

Another scenario might be that little changes: Credit markets could tolerate interest rates that prevailed before 2008. The Fed’s policy rate could increase a bit from its current 4.75%-5% range, and stay there for a while.

“A 5% interest rate is not going to break the market,” said Ben Snider, managing director, and U.S. portfolio strategist at Goldman Sachs Asset Management, in a phone interview with MarketWatch.

Snider pointed to many highly rated companies which, like the majority of U.S. homeowners, refinanced old debt during the pandemic, cutting their borrowing costs to near record lows. “They are continuing to enjoy the low rate environment,” he said.

“Our view is, yes, the Fed can hold rates here,” Snider said. “The economy can continue to grow.”

Profits margins in focus

The Fed and other global central banks have been dramatically increasing interest rates in the aftermath of the pandemic to fight inflation caused by supply chain disruptions, worker shortages and government spending policies.

Fed Governor Christopher Waller on Friday warned that interest rates might need to increase even more than markets currently anticipate to restrain the rise in the cost of living, reflected recently in the March consumer-price index at a 5% yearly rate, down to the central bank’s 2% annual target.

The sudden rise in interest rates led to bruising losses in stock and bond portfolios in 2022. Higher rates also played a role in last month’s collapse of Silicon Valley Bank after it sold “safe,” but rate-sensitive securities at a steep loss. That sparked concerns about risks in the U.S. banking system and fears of a potential credit crunch.

“Rates are certainly higher than they were a year ago, and higher than the last decade,” said David Del Vecchio, co-head of PGIM Fixed Income’s U.S. investment grade corporate bond team. “But if you look over longer periods of time, they are not that high.”

When investors buy corporate bonds they tend to focus on what could go wrong to prevent a full return of their investment, plus interest. To that end, Del Vecchio’s team sees corporate borrowing costs staying higher for longer, inflation remaining above target, but also hopeful signs that many highly rated companies would be starting off from a strong position if a recession still unfolds in the near future.

“Profit margins have been coming down (see chart), but they are coming off peak levels,” Del Vecchio said. “So they are still very, very strong and trending lower. Probably that continues to trend lower this quarter.”

Net profit margins for the S&P 500 are coming down, but off peak levels

Refinitiv, I/B/E/S

Rolling with it, including at banks

It isn’t hard to come up with reasons why stocks could still tank in 2023, painful layoffs might emerge, or trouble with a wall of maturing commercial real estate debt could throw the economy into a tailspin.

Snider’s team at Goldman Sachs Asset Management expects the S&P 500 index
SPX,
-0.21%
to end the year around 4,000, or roughly flat to it’s closing level on Friday of 4,137. “I wouldn’t call it bullish,” he said. “But it isn’t nearly as bad as many investors expect.”

Read: These five Wall Street veterans have 230 years of combined experience. Here’s why they are bearish on stocks.

“Some highly levered companies that have debt maturities in the near future will struggle and may even struggle to keep the lights on,” said Austin Graff, chief investment officer at Opal Capital.

Still, the economy isn’t likely to “enter a recession with a bang,” he said. “It will likely be a slow slide into a recession as companies tighten their belts and reduce spending, which will have a ripple effect across the economy.”

However, Graff also sees the benefit of higher rates at big banks that have better managed interest rate risks in their securities holdings. “Banks can be very profitable in the current rate environment,” he said, pointing to large banks that typically offer 0.25%-1% on customer deposits, but now can lend out money at rates around 4%-5% and higher.

“The spread the banks are earning in the current interest rate market is staggering,” he said, highlighting JP Morgan Chase & Co.
JPM,
+7.55%
providing guidance that included an estimated $81 billion net interest income for this year, up about $7 billion from last year.

Del Vecchio at PGIM said his team is still anticipating a relatively short and shallow recession, if one unfolds at all. “You can have a situation where it’s not a synchronized recession,” he said, adding that a downturn can “roll through” different parts of the economy instead of everywhere at once.

The U.S. housing market saw a sharp slowdown in the past year as mortgage rates jumped, but lately has been flashing positive signs while “travel, lodging and leisure all are still doing well,” he said.

U.S. stocks closed lower Friday, but booked a string of weekly gains. The S&P 500 index gained 0.8% over the past five days, the Dow Jones Industrial Average
DJIA,
-0.42%
advanced 1.2% and the Nasdaq Composite Index
COMP,
-0.35%
closed up 0.3% for the week, according to FactSet.

Investors will hear from more Fed speakers next week ahead of the central bank’s next policy meeting in early May. U.S. economic data releases will include housing-related data on Monday, Tuesday and Thursday, while the Fed’s Beige Book is due Wednesday.

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April 16, 2023

With the unemployment rate now at 3.5%, is this your last chance to jump ship?

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Have you got itchy feet?

The U.S. economy added 236,000 jobs in March, just shy of the 238,000 forecast by economists polled by the Wall Street Journal. The unemployment rate declined to 3.5% in March from 3.6% in February.

The latest data was calculated before the collapse of Silicon Valley Bank and Signature Bank last month, an event that…

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April 7, 2023

Take MarketWatch’s 2023 Financial Literacy Quiz. Will you get 10/10?

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April is National Financial Literacy Month. To mark the occasion, MarketWatch will publish a series of “Financial Fitness” articles to help readers improve their fiscal health, and offer advice on how to save, invest and spend their money wisely. Read more here.

Do you know the difference between a stock and a bond, or a mutual fund and an exchange-traded fund? MarketWatch put together a meat and potatoes — although that’s always relative — quiz for our savvy readers. We’ve stuck to some familiar topics — taxes, stocks, interest rates, savings and inflation. There are 10 questions — with one bonus question thrown in for good measure.

You don’t know what you don’t know until you get an incorrect answer in a financial literacy quiz. Some of the questions are tricky, but we hope they are fun and that — most importantly — readers learn something new. Financial literacy helps us to plan for the future, gives us peace of mind and brings more understanding and less fear about the complex world of investing and retirement.

Our aim is to raise awareness of Financial Literacy Month. If you get 10/10, including the bonus question, buy yourself (and a friend) a popsicle. If you didn’t answer all the questions correctly, buy yourself a popsicle anyway. We, at MarketWatch, aim to democratize and demystify financial news, and make this sometimes intimidating subject as accessible as possible.

If you found it useful and/or entertaining, share it with a friend.

–Quentin Fottrell

Question 1: What is the difference between a tax deduction and a tax credit?

(a) A tax deduction reduces your income taxes directly. A tax credit reduces your taxable income.

(b) A tax deduction reduces your taxable income. A tax credit reduces your income taxes directly.

(c) Both reduce your income taxes directly.

Question 2: Which way do bond prices move when interest rates rise?

(a) Bond-market prices fall as interest rates rise. Bond prices rise when interest rates decline.

(b) Bond-market prices rise as interest rates rise. Bond prices fall when interest rates decline.

(c) Bond-market prices fall as interest rates rise, but bond prices also fall when interest rates decline.

Question 3: What has been the average annual total return, with dividends reinvested, for the S&P 500 over the past 30 years?

(a) 9.7%, according to FactSet.

(b) 3%, according to FactSet.

(c) 6.5%, according to FactSet.

Question 4: What is compound interest and how does it work?

(a) Compound interest reflects the linear gain that comes from all the reinvested interest of your savings and investments, which allows your initial investment/deposit to gain value regardless of the amount of interest you pay.

(b) Compound interest reflects the exponential gain that comes from all the reinvested interest of your savings and investments, which allows your initial investment/deposit and the additional interest to increase in value.

(c) Compound interest reflects the amount of interest you pay every month on a loan, and the total amount of interest you have paid over the lifetime of that loan.

Question 5: What is APR and how is it different from a regular interest rate?

(a) APR is the annual interest on a loan calculated on the initial loan, including additional costs and fees, but not on the accumulated interest incurred on the loan.

(b) APR is the annual interest on a loan calculated on the initial loan and the accumulated interest over the first year.

(c) APR is the annual interest on a loan calculated on the initial loan, including additional costs and fees, and the accumulated interest over the lifetime of the loan loan.

Question 6: What percentage of your income should you spend on rent?

(a) Most real-estate experts say you should spend no more than 20% of your income on housing costs, which is considered to be a tipping point for becoming “cost-burdened.”

(b) Most real-estate experts say you should spend no more than 50% of your income on housing costs, which is considered to be a tipping point for becoming “cost-burdened.”

(c) Most real-estate experts say you should spend no more than 30% of your income on housing costs, which is considered to be a tipping point for becoming “cost-burdened.”

Question 7: What’s an ETF?

(a) ETFs, or Exchange-Traded Funds, are baskets of investments — stocks, bonds, or commodities — that investors can buy throughout the trading day like stocks.

(b) ETFs, or Exchange-Traded Funds, are baskets of investments — stocks, bonds, or commodities — that investors can only buy at the end of the trading day.

(c) ETFs, or Exchange-Traded Funds, are baskets of investments — stocks, bonds, or commodities — that investors can only buy during or at the end of the trading day.

Question 8: What is the difference between a stock and a bond?

(a) A stock is a temporary investment in a company, while a bond is issued by a company to reward shareholders.

(b) A stock is a share in the ownership of a company, while a bond is issued by a company to finance a loan.

(c) A stock is a share in the ownership of a company, while a bond is issued by a company to finance the stock.

Question 9: If you were born in 1960 or later, at what age can you receive your full Social Security in the U.S.? Bonus question: At what age can you receive your maximum Social Security benefit?

(a) Full retirement age in the U.S. is 65 for those born in 1960 and after. While you can start collecting your Social Security retirement benefits as early as 62, your benefits are permanently reduced. Your Social Security benefits max out at age 70. By delaying until 70, your benefit is 76% higher than if you had claimed at the earliest possible age (62).

(b) Full retirement age in the U.S. is 65 for those born in 1960 and after. While you can start collecting your Social Security retirement benefits as early as 62, your benefits are permanently reduced. Your Social Security benefits max out at age 67. By delaying until 67, your benefit is 76% higher than if you had claimed at the earliest possible age (62).

(c) Full retirement age in the U.S. is 67 for those born in 1960 and after. While you can start collecting your Social Security retirement benefits as early as 62, your benefits are permanently reduced by a small percentage each month until you reach 67. Your Social Security benefits max out at age 70. By delaying until 70, your benefit is 76% higher than if you had claimed at the earliest possible age (62).

Question 10: What is the Federal Reserve’s desired rate of inflation?

(a) 2%

(b) 3%

(c) 2.5%

Bonus question! What is considered a good credit score?

(a) 560

(b) 680

(c) 800

If you get 10/10, including the bonus question, buy yourself a popsicle.

Getty Images/iStockphoto

Answer 1:

(b) A tax deduction reduces your taxable income. A tax credit reduces your income taxes directly.

Answer 2:

(a) Bond-market prices fall as interest rates rise. Bond prices rise when interest rates decline.

Answer 3:

(a) 9.7%, according to FactSet.

Answer 4:

(b) Compound interest reflects the exponential gain that comes from all the reinvested interest of your savings and investments, which allows your initial investment/deposit and the additional interest to increase in value.

Answer 5:

(c) APR is the annual interest on a loan calculated on the initial loan, including additional costs and fees, and the accumulated interest over the lifetime of the loan.

Answer 6:

(c) Most real-estate experts say you should spend no more than 30% of your income on housing, which is considered to be a tipping point for becoming “cost-burdened.”

Answer 7:

(a) ETFs are Exchange-Traded Funds. These are baskets of investments — stocks, bonds, or commodities — that investors can buy or sell throughout the trading day.

Answer 8:

(b) A stock is a share in the ownership of a company, while a bond is issued by a company to finance a loan.

Answer 9:

(c) Full retirement age in the U.S. is 67 for those born in 1960 and after. While you can start collecting your Social Security retirement benefits as early as 62, your benefits are permanently reduced. Your Social Security benefits max out at age 70. By delaying until 70, your benefit is 76% higher than if you had claimed at the earliest possible age (62).

Answer 10:

(a) 2%

Answer for bonus question!

(b) 680. Although credit scores vary depending on the model, according to Experian, credit scores between 580 and 669 are considered “fair,” scores between 670 and 739 are regarded as “good”; 740 to 799 are considered “very good”; and scores of 800 and above are considered “excellent.”

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April 5, 2023

S&P 500 books back-to-back loss as recession worries return

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U.S. stocks closed mixed on Wednesday as weaker economic data weighed on equities and focus among investors returned to recession concerns. The Dow Jones Industrial Average
DJIA,
+0.24%
gained about 80 points, or 0.2%, ending near 33,482, according to preliminary FactSet data, but the S&P 500 index
SPX,
-0.25%
and Nasdaq Composite Index
COMP,
-1.07%
fell 0.3% and 1.1%, respectively. That left the S&P 500 down for two straight days and the Nasdaq lower for a third day in a row. Investors were focused on an ADP report showing that private-sector employers added 145,000 jobs in March, well below the 210,000 expected by economists surveyed by The Wall Street Journal. Also, the bellwether Institute for Supply Management’s service sector activity index showed business conditions at U.S. companies fell to a three-month low of 51.2% in March.

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April 5, 2023

14 dividend stocks yielding 4% or more that are expected to increase payouts in 2023 and 2024

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If you invest in dividend stocks, you are probably looking for long-term growth to go with the income. Otherwise you might be content to hold one-month U.S. Treasury bills, which yield 4.5% or park your money in an online savings account for a yield close to 4%.

Below is screen of stocks with current dividend yields ranging from 4.14% to 8.46%. What sets these apart from other stocks with high dividend yields is that their payout increases are expected to accelerate in 2023 and 2024 from those in 2022.

On Tuesday, S&P Dow Jones Indices said in a press release that it expected dividend payments by publicly traded U.S. companies to continue to hit record levels in 2023. But Howard Silverblatt, a senior index analyst with the firm, said that the pace of dividend increases in the first quarter had slowed and that he expected this year’s increases to be “at half the pace of the double-digit 2022 growth.”

Silverblatt also said current events in the banking industry were “expected to negatively impact future spending from both consumers and companies, which in turn may curtail corporate dividend growth.”

For many banks, there’s another big item on the table. A focus on share buybacks in recent years is very likely to end — this is a use of cash that can raise earnings per share if the share count is reduced, but there can be consequences, especially after a year of rising interest rates that pushed down the market value of banks’ investments in bonds.

In a note to clients on March 16, Dick Bove, a senior research analyst with Odeon Capital, predicted that stock repurchases in the banking industry would be “meaningfully cut back if not flat out eliminated.” He made three general points about buybacks in the banking industry:

Buybacks remove working capital that would otherwise provide returns to a bank.
Buybacks mean a bank’s board of directors is “in favor of flat-out giving capital away to investors that want nothing to do with the bank — they are selling its stock.”
Buybacks do “nothing to increase bank stock prices – many bank stocks are selling at below their prices of five years ago.”

A company might find it much easier to curtail or stop buying back shares to preserve cash than it is to cut regular dividends. Preserving and increasing the dividend over time has been correlated with good performance for stocks over time. These articles provide examples of how dividend compounding is correlated with long-term growth as income streams build up:

Dividend stock screen

The S&P Dow Jones Indices report raises the question of which stocks might buck the trend.

Starting with the S&P 500
SPX,
-0.50%,
there are 71 companies stocks with current dividend yields of at least 4.00% indicated by annual payout rates. Among these companies, 68 increased dividends during 2022, according to data provided by FactSet.

Then we looked at the pace of dividend increases in 2022 and the consensus estimates for dividends paid during 2023 and 2024, among analysts polled by FactSet. Among the remaining 68 companies, there are 29 for which the estimated 2023 dividend increase is higher than the 2022 dividend increase. Narrowing further, there are 14 for which the estimated 2024 dividend increases are higher than the estimated 2023 dividend increases.

Here are the 14 stocks that passed the screen, sorted by current dividend yield:

Company	Ticker	Dividend yield	Dividend increase – 2022	Expected dividend increase in 2023	Expected dividend increase in 2024
Altria Group Inc.	MO, +0.27%	8.46%	4.5%	4.7%	4.9%
Newell Brands Inc.	NWL, -1.19%	7.55%	0.0%	0.1%	0.6%
Boston Properties Inc.	BXP, -0.94%	7.42%	0.0%	0.7%	1.0%
KeyCorp	KEY, -2.22%	6.99%	5.3%	6.7%	6.8%
Prudential Financial Inc.	PRU, +0.17%	6.08%	4.3%	4.7%	4.8%
ONEOK Inc.	OKE, +0.60%	5.87%	0.0%	2.2%	2.4%
Healthpeak Properties Inc.	PEAK, -0.32%	5.54%	0.0%	2.1%	2.2%
Dow Inc.	DOW, -0.53%	5.16%	0.0%	1.1%	2.2%
Iron Mountain Inc.	IRM, -1.00%	4.70%	0.0%	1.8%	5.4%
NRG Energy Inc.	NRG, +1.34%	4.50%	7.7%	7.9%	7.9%
Franklin Resources Inc.	BEN, -0.58%	4.50%	3.6%	4.3%	5.7%
Federal Realty Investment Trust	FRT, -0.53%	4.38%	0.9%	1.7%	2.1%
Ventas Inc.	VTR, -0.57%	4.26%	0.0%	3.3%	5.5%
Kraft Heinz Co.	KHC, +1.42%	4.14%	0.0%	0.7%	0.8%
Source: FactSet

Click on the ticker for more about each company.

Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

Any stock screen is limited, but can be useful as a starting point or supplement to your own research. If you see any companies of interest, do some research to form your own opinion of how likely they are to remain competitive over the next decade, at least.

Don’t miss: This stock ETF keeps beating the S&P 500 by selecting for quality

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April 5, 2023

Dow ends about 200 points lower as economy shows more signs of sputtering

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Major U.S. stock indexes fell on Tuesday, with the Dow and S&P 500 both snapping a 4-session win streak, as economic data showed more signs of a sputtering U.S. economy. The Dow Jones Industrial Average
DJIA,
-0.59%
fell about 198 points, or 0.6%, ending near 33,403, while the S&P 500 index
SPX,
-0.58%
shed 0.6% and the Nasdaq Composite Index
COMP,
-0.52%
fell 0.5%, according to preliminary FactSet data. Investors were eyeing less robust economic data out Tuesday. The number of U.S. job openings in February fell to a 21-month low, while orders for manufactured goods fell for the third time in the past four months. Gold prices
GC00,
-0.04%
were flirting with a return to record territory, trading above $2,000 an ounce. The 2-year Treasury rate
TMUBMUSD02Y,
3.854%
stayed below 4% at 3.84%.

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April 4, 2023

Trump to surrender Tuesday morning before court appearance: report

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Former President Donald Trump plans to fly to New York’s LaGuardia Airport Monday night, then spend the night at Trump Tower and surrender Tuesday morning before a court appearance at 2:15 p.m. Eastern time, according to an NBC 4 NY report citing unnamed sources. Trump is expected to face an arraignment on Tuesday after a Manhattan grand jury voted Thursday to indict him.

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March 31, 2023

Tag: construction

A new AI stock screen

Two examples

Top holdings of the funds

Fluor Stock Performance

Wall Street Analysts Forecast Growth

Insider Buying and Selling

Hedge Funds Weigh In On Fluor

About Fluor

Featured Stories

Wall Street Analyst Weigh In

Meritage Homes Stock Up 4.8 %

Meritage Homes Dividend Announcement

Insiders Place Their Bets

About Meritage Homes

Featured Articles

Profits margins in focus

Net profit margins for the S&P 500 are coming down, but off peak levels

Rolling with it, including at banks

If you get 10/10, including the bonus question, buy yourself a popsicle.

Dividend stock screen