Interest Rates Are Coming Down. 3 Top Stocks to Buy Right Now.
After several years of keeping interest rates elevated to tame inflation, the Federal Reserve finally flipped the lever the other way on Wednesday.
The central bank surprised some investors by opting for a 50-basis-point cut, lowering the federal funds rate 4.75% to 5%. The move should give a welcome boost to the economy, even though major stock market indexes gave up their initial gains by the end of that day’s session.
Still, lower interest rates are clearly a boon for a number of stocks. Let’s take a look at three that are primed to gain on lower interest rates.
1. Home Depot
Arguably, the biggest impact of interest rate cuts is that it will lower mortgage rates and borrowing costs for homeowners. That means it’s likely to give a much-needed spark to the ailing housing market, and as rates fall, it will encourage refinancing and borrowing through home equity loans and lines of credit (HELOCs).
In fact, there’s already some evidence that the demand for HELOCs, which are typically variable-rate loans, is soaring in anticipation of falling interest rates. Additionally, homeowners have more equity to tap now due to the lock-in effect of high mortgage rates over the last few years.
This is all good news for Home Depot (NYSE: HD), the country’s largest home improvement retailer. Home Depot has struggled in recent years after the pandemic boom in home improvement spending gave way to a bust as mortgage rates soared.
The business is cyclical, and lower rates should give a boost to home improvement spending. Home Depot also has even more firepower after its acquisition of SRS Distribution earlier this year, which significantly increased its exposure to the building materials distribution sector, serving professional contractors and tradespeople.
Home Depot business is still struggling with comparable sales down 3.3% in the second quarter, but with rates expected to continue coming down, don’t be surprised if the company’s business, and the stock, are soaring by peak home improvement season next spring.
2. Carnival Corp.
Carnival Corp. (NYSE: CCL), the world’s largest cruise line operator, is a good example of a stock that’s well positioned to take advantage of lower interest rates.
Carnival should benefit in two ways. First, lower rates will lower the interest payments on its large debt balance, and possibly give the company a chance to refinance its fixed-rate debt.
The company had to go deep into debt to survive the pandemic, and it finished the second quarter with $29.3 billion in debt, which cost it $450 million in interest expense in the quarter, or $1.8 billion annualized. That equals a 6.1% average interest rate, and its interest expense ate up nearly all of the company’s $560 million in operating income in the quarter.
Even if Carnival lowered its average interest rate by 1 percentage point, it would save $180 million a year on interest expense.
The other reason why Carnival should benefit from lower interest rates is that they should boost the economy and consumer spending by helping the labor market, making it easier for businesses to borrow, and lower costs for consumers, giving them more money to spend on discretionary activities like travel.
Like Home Depot, Carnival operates in a cyclical industry, meaning the business tends to do better in a healthy and expanding economy.
3. Upstart
Finally, Upstart (NASDAQ: UPST) is another strong candidate to benefit from lower interest rates. As a consumer lending platform, Upstart has more exposure to interest rates than almost any other stock, and its volatile history shows that.
Shares surged back in 2021 as the company’s revenue jumped by triple digits and it put up strong profit margins. However, that boom was driven by stimulus money and the pandemic economy, and it dried up as interest rates rose and credit standards tightened.
With interest rates now falling, that unwinding should boost demand for Upstart’s loans, and loosen lending standards.
The business also seems to have improved in the meantime. Its most recent loan originations are expected to generate 14% gross returns. Its Upstart Macro Index is falling, meaning that the macroeconomy is less likely to cause a default. Ninety-one percent of its loans are instantly approved and fully automated, and it’s expanded its HELOC product to 30 states and the District of Columbia.
Management didn’t factor rate cuts into its guidance, but CFO Sanjay Datta said, “Reducing rates are unambiguously good for the business,” and added that high rates had been “the main headwind to our business.”
It’s unclear what the exact impact of lower rates will be, but Datta predicted that conversion rates, or the percentage of successful loan applications on the company’s platform, would increase with each cut from the Fed. It could take a couple of quarters for that to play out in the numbers, but Upstart stock could soar if it starts to show flashes of the company it was in 2021.
Should you invest $1,000 in Home Depot right now?
Before you buy stock in Home Depot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Home Depot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $694,743!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 16, 2024
Jeremy Bowman has positions in Upstart. The Motley Fool has positions in and recommends Home Depot and Upstart. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
Interest Rates Are Coming Down. 3 Top Stocks to Buy Right Now. was originally published by The Motley Fool
Mortgage Rates Continue to Tumble
MCLEAN, Va., Sept. 19, 2024 (GLOBE NEWSWIRE) — Freddie Mac FMCC today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.09 percent.
“Mortgage rates continued declining towards the six percent mark, reviving purchase and refinance demand for many consumers,” said Sam Khater, Freddie Mac’s Chief Economist. “While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market. Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but we expect rates to fall further, sparking more housing activity.”
News Facts
- The 30-year FRM averaged 6.09 percent as of September 19, 2024, down from last week when it averaged 6.20 percent. A year ago at this time, the 30-year FRM averaged 7.19 percent.
- The 15-year FRM averaged 5.15 percent, down from last week when it averaged 5.27 percent. A year ago at this time, the 15-year FRM averaged 6.54 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | X | LinkedIn | Facebook | Instagram | YouTube
MEDIA CONTACT:
Angela Waugaman
(703)714-0644
Angela_Waugaman@FreddieMac.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/08344746-0064-45b9-9a4a-6765b4420a48
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Nomad Foods Is a Great Choice for 'Trend' Investors, Here's Why
When it comes to short-term investing or trading, they say “the trend is your friend.” And there’s no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
Often, the direction of a stock’s price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it’s important to ensure that there are enough factors — such as sound fundamentals, positive earnings estimate revisions, etc. — that could keep the momentum in the stock going.
Our “Recent Price Strength” screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Nomad Foods
NOMD is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for “trend” investors.
A solid price increase over a period of 12 weeks reflects investors’ continued willingness to pay more for the potential upside in a stock. NOMD is quite a good fit in this regard, gaining 18.5% over this period.
However, it’s not enough to look at the price change for around three months, as it doesn’t reflect any trend reversal that might have happened in a shorter time frame. It’s important for a potential winner to maintain the price trend. A price increase of 7.2% over the past four weeks ensures that the trend is still in place for the stock of this frozen foods company.
Moreover, NOMD is currently trading at 93.7% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises — the key factors that impact a stock’s near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988.
Another factor that confirms the company’s fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock’s near-term price performance.
So, the price trend in NOMD may not reverse anytime soon.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Traders Brace For Friday Volatility As Over $5 Trillion In Options Expire: Could 'Triple Witching' Spoil Fed's Rally?
After a bullish session on Thursday, with both the S&P 500 and the Dow Jones hitting record highs, spurred by increased risk appetite following a bold 0.5% rate cut by the Federal Reserve, traders are gearing up for a volatile end to the week.
Friday marks a notorious “Triple Witching” day, when stock index futures, stock index options and individual stock options expire simultaneously — a convergence that historically stirs market turbulence.
Goldman Sachs estimates than more than $4.5 trillion in notional options exposure will expire on Friday, including $605 billion in single-stock options.
According to Bloomberg, using estimates from derivatives analytical firm Asym 500, the overall notional options expiring Friday reach $5.1 trillion when including options tied to ETFs.
“This Friday will be the largest September-options expiration on record, driven by elevated index and ETF options volumes,” wrote Goldman Sachs analyst John Marshall.
While the September expiration will set a new record, it’s expected to be smaller than the previous quarterly expirations of 2024.
A Record-Breaking Expiration Day
Goldman Sachs highlighted that average daily index and ETF options volumes have reached a new high this quarter. In contrast, single-stock options trading has seen a decline.
The sheer magnitude of options expiring Friday could trigger a wave of volatility as traders scramble to adjust their position, and the Federal Reserve’s recent rate cut might not be enough to temper the storm.
Could this triple witching day spoil the market rally ignited by the Fed?
What Is ‘Triple Witching’? How Did Markets Previously Perform?
Triple witching refers to the simultaneous expiration of three types of derivative contracts — stock index futures, stock index options and single-stock options — on the same day, occurring quarterly on the third Friday of March, June, September and December.
This convergence can lead to heightened market volatility as traders close, roll over or offset their expiring contracts, often resulting in unusual price movements and increased trading volumes.
Looking back at the last three triple witching events, the S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, has struggled during these high-stakes trading days.
- June 21, 2024: The S&P 500 dropped 0.5%.
- March 15, 2024: The index fell by 1%.
- Dec. 15, 2023: The S&P 500 declined 0.6%.
Tech stocks, represented by the Invesco QQQ Trust QQQ, underperformed in the last two triple witching occasions, falling 0.8% in June and 1.2% in March, while surging 0.5% in December 2023.
Goldman Sachs Recommends VIX Calls Ahead of Volatility Spike
September is historically the worst month for stock market performance.
According to Ryan Detrick, chief market strategist at Carson Group, the last two weeks of September are the worst period for stocks during the year, as the expert showed in a post on social media platform X.
The CBOE Volatility Index (VIX), often referred to as the market’s fear gauge, has dropped significantly since its spike in August.
The index is sitting at 17, well below its multiyear average, and Goldman Sachs sees the VIX on the rise as we enter the seasonally volatile period.
Goldman Sachs’ economic model estimates that, given macroeconomic conditions, the VIX should be at 24.5, suggesting the current low volatility may not last much longer.
The investment bank issued a recommendation for investors to hedge their portfolios using VIX calls. Specifically, Goldman Sachs analysts advise buying CBOE Volatility Index (VIX) November calls at a strike price of 18.
Read Next:
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
A Bull Market Is Here: 2 Incredibly Innovative Growth Stocks Down 14% and 59% to Buy Right Now
Technological innovation has been one of the biggest catalysts for stock market growth over the last century, and that’s unlikely to change anytime soon. For investors who back the right companies and allow growth trends and competitive wins to stack up over the long term, incredible returns are possible.
With that in mind, read on to see why two Motley Fool contributors think that buying these two stocks right now while they’re still down significantly from previous highs looks like a good move.
Nvidia stock is a buy after taking a breather
Keith Noonan: Nvidia (NASDAQ: NVDA) is the company responsible for the advanced graphics processing units (GPUs) that are at the heart of the artificial intelligence (AI) revolution. It’s also the market’s most influential and intensely monitored battleground stock.
Even after a 14% pullback from an all-time high reached in June, the company’s stock is still up roughly 136% in 2024. Spurred by incredible demand from large data center customers, including Microsoft and Meta Platforms, Nvidia’s sales and earnings growth has been nothing short of incredible. But some investors also wonder how long the company can sustain its stellar sales momentum and margins.
With a market capitalization of roughly $2.86 trillion as of this writing, Nvidia’s valuation has soared more than 2,480% over the last five years, and it stands as the world’s third-most valuable company. There should be little doubt that it’s a high-risk stock, but I also think that it’s still one worth owning for long-term investors.
In the second quarter, Nvidia posted a gross margin of 75.1% — down from the record margin of 78.4% it posted in Q1. The company also guided for a gross margin of roughly 74.5% in the current quarter. The company is still posting fantastic margins, but it’s not unreasonable to think that the business’s gross margin may have hit a peak for now. On the other hand, Nvidia’s outlook remains very promising.
After growing sales 122% year over year in Q2, Nvidia expects Q3 sales to jump 79% compared to 2023’s Q3. It also has a major performance catalyst on track to begin contributing in Q4 and then be an even bigger performance driver in the next fiscal year.
Nvidia will launch its next-generation Blackwell chips in this year’s final quarter, and the hardware is poised to deliver major AI performance improvements and huge revenue for Nvidia. CEO Jensen Huang has said he expects the Blackwell processors to be the company’s most successful products ever.
While Nvidia could price its Blackwell processors at levels that significantly boost gross margins, it doesn’t necessarily have to go that route. The company is crushing the competition in the market for advanced GPUs and accelerators for AI, and a relatively small sacrifice on the margin front could help it secure advantages that shore up its long-term positioning in today’s most important tech trend.
For long-term investors looking for ways to play AI trends, Nvidia stock remains a worthwhile portfolio addition.
The dip in Cognex’s share price is an ideal buying opportunity
Lee Samaha: There’s no way to sugarcoat the situation; machine vision company Cognex‘s (NASDAQ: CGNX) end markets are struggling in 2024. Still, much of that struggle is already reflected in the share price (down 60% from its all-time high). But long-term investors aren’t buying stocks for a few quarters’ earnings but rather for their long-run earnings potential.
Cognex and its machine vision solutions continue to have substantial growth opportunities. Using automated machine vision in manufacturing or logistics (such as e-commerce fulfillment) helps improve quality, consistency, efficiency, costs, and safety. It also creates digital information used in data analytics to improve processes.
Management sees its end markets growing at 13% annually for the next several years, with Cognex slightly outgrowing its markets by 15% annually.
Over the near term, Cognex is dealing with a lowering of growth expectations in two of its three key end markets: automotive and consumer electronics. Raised interest rates over the past few years dampened expectations for automotive sales this year, including electric vehicles (EVs), and Cognex’s technology is utilized in EV battery production. Relatively high interest rates also challenged consumer discretionary spending (for example, on smartphones, where Cognex’s machine vision helps layer screens).
The result is a dampening of growth prospects in 2024. Given that the company tends to report larger orders in the spring and summer (as its customers gear up for rising production in the fourth quarter), it’s unlikely that Cognex will have overly positive newsflow on orders before the spring of 2025.
Still, these trends won’t last forever, and a lower interest rate environment in 2025 could spur a release of pent-up investment spending in automotive and consumer electronics. Meanwhile, Cognex’s logistics end market is already in recovery mode. That suggests that the weakness in the share price offers an ideal buying opportunity for a company with an excellent track record of growth.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $708,348!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 16, 2024
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cognex, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
A Bull Market Is Here: 2 Incredibly Innovative Growth Stocks Down 14% and 59% to Buy Right Now was originally published by The Motley Fool
Over The Counter Pain Medication Market to Surpass $35.50 Billion by 2031, Says Coherent Market Insights (CMI)
Burlingame, Sept. 19, 2024 (GLOBE NEWSWIRE) — The global Over The Counter Pain Medication Market Size to Grow from USD 27.12 Billion in 2024 to USD 35.50 Billion by 2031, at a Compound Annual Growth Rate (CAGR) of 3.9% during the forecast period, as highlighted in a new report published by Coherent Market Insights. Increasing trend of self-medication for mild pain issues instead of visiting a doctor. Busy modern lifestyles and shorter attention spans have made people choose quick relief over medical consultations for issues like headaches, minor body aches, menstrual cramps, joint pain, and other temporary pain conditions.
Request Sample Report: https://www.coherentmarketinsights.com/insight/request-sample/7222
Market Dynamics:
The over the counter pain medication market is driven by rising incidences of chronic diseases such as arthritis, back pain, and migraine. As per estimates, around 1.5 billion people globally suffer from back pain which is the most common and prevalent chronic disease. Additionally, around 1 billion people suffer from arthritis. Pain relievers such as analgesics and nonsteroidal anti-inflammatory drugs are widely used for managing mild to moderate pains associated with chronic diseases. Furthermore, increasing geriatric population who are more prone to aches and pains is expected to fuel demand for pain relief medication over the forecast period.
Over The Counter Pain Medication Market Report Coverage
| Report Coverage | Details |
| Market Revenue in 2024 | $27.12 billion |
| Estimated Value by 2031 | $35.50 billion |
| Growth Rate | Poised to grow at a CAGR of 3.9% |
| Historical Data | 2019–2023 |
| Forecast Period | 2024–2031 |
| Forecast Units | Value (USD Million/Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Drug Class, By Route of Administration, By Dosage Form, By Distribution Channel |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of World |
| Growth Drivers | • Growing Prevalence of Chronic Diseases • Easy availability and accessibility of OTC pain medicines |
| Restraints & Challenges | • Side effects of prolonged usage • Risk of addiction and drug abuse |
Market Trends:
Inclination towards herbal and homeopathic pain relievers is one of the major trends witnessed in the global over the counter pain medication market. Customers are showing greater preference for herbal and homeopathic products owing to perceived fewer side effects. Moreover, shifting customer preference towards green and sustainable products is augumenting demand for herbal pain medications. Additionally, advances in modern medicine have led to introduction of innovative drug delivery formats like gels, sprays, and roll-ons. Products with such novel formats are gaining wide acceptance among customers looking for convenience and fast pain relief. Players in the market are focusing on development of innovative delivery formats to enhance customer experience.
Immediate Delivery Available | Buy This Premium Research Report: https://www.coherentmarketinsights.com/insight/buy-now/7222
Non-steroidal anti-inflammatory drugs (NSAIDs) segment is estimated to hold the largest share of the over the counter pain medication market. NSAIDs work by blocking the production of prostaglandins – hormone-like substances in the body that promote inflammation, pain, and fever. Some commonly used NSAIDs available over the counter include ibuprofen, naproxen, and aspirin. Their wide availability without prescription and effectiveness in treating different types of pain make NSAIDs the most preferred choice for mild to moderate pain relief.
The oral route of administration segment accounted for the major share of the over the counter pain medication market in 2024. Oral medications in the form of tablets, capsules, syrups, and liquids are the most convenient and commonly used mode of delivery for pain relief. They are easy to consume, have better patient compliance compared to other modes, and work effectively in relieving different types of acute and chronic pains from headaches to body aches. These benefits have made oral formulations the mainstay products in the OTC pain medicine space.
Key Market Takeaways:
The global over the counter pain medication market is projected to record a CAGR of 3.9% during the forecast period of 2024-2031 to reach a value of US$ 27.12 billion by 2031. The growth can be attributed to the rising geriatric population worldwide that is more prone to pains, ailments, and increased self-medication trends.
On the basis of drug class, the non-steroidal anti-inflammatory drugs (NSAIDs) segment holds the largest share due to factors like wide availability and effectiveness against different types of pains. By route of administration, the oral segment dominates the market as oral formulations are highly convenient and have better compliance.
Regionally, North America holds a dominant share in the over the counter pain medication market and is expected to retain its dominance through 2031 due to the presence of major players, growing health awareness, and increasing incidence of musculoskeletal pains.
Key market players operating in the over the counter pain medication market include Johnson & Johnson, Pfizer Inc., Bayer AG, GlaxoSmithKline plc, Sanofi S.A. Reckitt Benckiser Group Plc, Novarties AG, Perrigo Company plc, Takeda Pharmaceuticals Company Limited, Teva Pharmaceuticals Industries ltd, Boehringer Ingelheim International GmbH, Sun Pharmaceutical Industries Ld., Alken Laboratories Ltd., Cipla Ltd., Dr. Reddy’s Laboratories Ltd., Glenmark Pharmaceuticals Ltd., Lupin Limited, and Aurobindo Pharma Limited. These players are actively engaged in new product launches and strategic collaborations to strengthen their market presence.
Recent Developments:
In March 2024, The US. FDA has warned against using certain over-the-counter topical analgesics for pain relief before, during, or after cosmetics procedures like microdermabrasion, laser hair removal, tattooing, and piercing.
In October 2023, the USFDA approval for the approval non-opioid painkiller Maxigesic IV was announced by Belgium-based Hyloris Pharmaceuticals.
Request For Customization: https://www.coherentmarketinsights.com/insight/request-customization/7222
Detailed Segmentation:
By Drug Class:
- Non-steroidal Anti-inflammatory Drugs (NSAIDs)
- Local Anaesthetics
- Acetaminophen
- Salicylates
- Others
By Route of Administration:
By Dosage Form:
- Tablets/Capsules
- Liquids
- Creams
- Gels
- Others
By Distribution Channel:
- Hospital Pharmacies
- Retail Pharmacies
- Online Pharmacies
By Region:
North America:
Latin America:
- Brazil
- Argentina
- Mexico
- Rest of Latin America
Europe:
- Germany
- U.K.
- Spain
- France
- Italy
- Russia
- Rest of Europe
Asia Pacific:
- China
- India
- Japan
- Australia
- South Korea
- ASEAN
- Rest of Asia Pacific
Middle East:
- GCC Countries
- Israel
- Rest of Middle East
Africa:
- South Africa
- North Africa
- Central Africa
Have a Look at Trending Research Reports on Pharmaceutical Domain:
Rx Medical Food Market, by Product Type, by Therapeutic Application, by Distribution Channel, and by Region Size, Share, Outlook, and Opportunity Analysis, 2024 – 2031
Cold Pain Therapy Market, By Product, By Therapy Type, By Device Type, By Application, By Distribution Channel – Global Industry Insights, Trends, Outlook and Opportunity Analysis, 2024-2031
Pain Management Drugs Market is estimated to be valued at US$ 76,415.7 million in 2022 and is expected to exhibit a CAGR of 4.1% during the forecast period (2022-2030).
Neuropathic Pain Market is estimated to be valued at US$ 7.56 Billion in 2023 and is expected to exhibit a CAGR of 6.2% during the forecast period (2023-2030).
Author Bio:
Ravina Pandya, PR Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
About Us:
Coherent Market Insights is a global market intelligence and consulting organization that provides syndicated research reports, customized research reports, and consulting services. We are known for our actionable insights and authentic reports in various domains including aerospace and defense, agriculture, food and beverages, automotive, chemicals and materials, and virtually all domains and an exhaustive list of sub-domains under the sun. We create value for clients through our highly reliable and accurate reports. We are also committed in playing a leading role in offering insights in various sectors post-COVID-19 and continue to deliver measurable, sustainable results for our clients.
Mr. Shah Senior Client Partner – Business Development Coherent Market Insights Phone: US: +1-650-918-5898 UK: +44-020-8133-4027 AUS: +61-2-4786-0457 India: +91-848-285-0837 Email: sales@coherentmarketinsights.com Website: https://www.coherentmarketinsights.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
3 Dividend Stocks to Buy Now That Have Raised Their Payouts for at Least 20 Consecutive Years
When scanning the market for dividend stocks, you’re sure to notice companies with high yields. But it’s arguably more impressive when companies pay and raise their dividends every year no matter what the economy is doing. Consistent dividend raises often coincide with financial health and steady earnings growth.
Emerson Electric (NYSE: EMR), NextEra Energy (NYSE: NEE), and Clorox (NYSE: CLX) don’t have mind-numbingly high yields. But all three companies are well on their way to extending their streak of dividend raises for decades to come.
Here’s why all three dividend stocks are worth buying now.
Repositioning the company in growth markets will ensure more dividend growth in the future
Lee Samaha (Emerson Electric): After adjusting for stock splits, Emerson Electric has increased its dividend every year since 1956, and its growth potential ensures plenty more to come.
The industrial company has been transforming over the last few years as management steers it toward a future focused on automation and related markets such as test and measurement, industrial software, and smart grid solutions.
The idea is to reposition the company in growth markets that will benefit from long-term megatrends such as labor automation, the electrification of everything, reshoring manufacturing (which implies increased demand for automation and smart factories), and the digital revolution in manufacturing and processing.
Having sold the remaining vestiges of its climate technologies business, acquired automated test and measurement company NI, and closed a transaction resulting in a 55% stake in industrial software company Aspen Technology (NASDAQ: AZPN), management has positioned the company for future growth.
That growth will likely kick in after some of its end markets recover from a slowdown in 2024. For example, investment in its factory automation and test and measurement business is currently weak due to a downturn in the economy and a pullback in investment from industrial customers in production capability (factory automation) and research and development (test and measurement).
A lower-interest-rate environment will help in 2025, and the underlying long-term secular trends discussed above will continue, enabling Emerson Electric to generate the 4% to 7% organic revenue growth management expects to achieve through the ups and downs of the economic cycle.
With three decades of dividend growth under its belt, NextEra Energy plans on powering its payout even higher
Scott Levine (NextEra Energy): A lesson you may remember learning at the beginning of your investing journey is that previous performances don’t guarantee future results. But looking at previous performances can still be useful.
Take utility stock NextEra Energy, for instance. The company has increased its dividend for 30 consecutive years, and while it’s not guaranteed to continue doing so for the next 30 years, that’s certainly an auspicious sign. And that’s just for starters. For those looking to supplement their passive income streams, NextEra Energy stock — along with its 2.5% forward-yielding dividend — looks like an attractive option right now.
Conservative investors won’t find only the past 20 years of dividend increases compelling; the steady earnings and cash flow growth have supported the dividend. From 2003 to 2023, NextEra Energy has boosted its dividend at a 10% compound annual growth rate (CAGR). Similarly, its adjusted earnings per share (EPS) and operating cash flow increased at CAGRs of 9% and 8%, respectively, during the same period. Lest investors speculate that this means the dividend increases are jeopardizing the company’s financials, consider that the company has averaged a 60.2% payout ratio over the past 10 years.
All of these accomplishments should give investors confidence that the company will achieve its 2024 adjusted EPS forecast of $3.23 to $3.43, rising at a 6% to 8% CAGR through 2027. Operating cash flow is projected to grow at the same rate or higher. Management expects to raise its dividend at a 10% CAGR per share from $2.06 in 2024 through 2026.
Shares of NextEra Energy have traded at a five-year average operating cash flow multiple of 15.6. They’re now changing hands at a discount: about 12.3 times operating cash flow. This stock seems ripe for the picking.
Clorox has room to run after hitting an all-time high
Daniel Foelber (Clorox): Clorox hit an intraday 52-week high on this week, but there’s still reason to believe the consumer goods stock is worth buying now.
Clorox began paying dividends in 1986. It has raised its dividend every year since then. Despite the run-up in the stock price, Clorox still yields 2.9%, which is more than the 2.6% average yield in the consumer staples sector.
Clorox has rocketed higher since undergoing a steep sell-off this summer, with the stock now up 24% in just three months. That’s a big move for a stodgy company like Clorox.
The rebound is likely due to improving gross margins. Clorox’s margins initially surged during the peak of the COVID-19 pandemic, only to nosedive after Clorox bet too big on consumer demand trends toward cleaning products and hygiene. The following chart shows that Clorox’s stock price has returned to around its pre-pandemic high, and so have gross margins.
It took a few years and multiple operational blunders, but Clorox has finally found its footing. Management expects gross margins to tick up another 100 basis points in fiscal 2025. It also expects $6.55 to $6.80 in adjusted EPS. At the midpoint, that would be an 8% increase from fiscal 2024 and would give Clorox a forward price-to-earnings ratio of 24.9 on an adjusted basis. That’s not dirt cheap, but it’s reasonable if Clorox can continue high-single-digit earnings growth.
Clorox is known for its flagship cleaning products, but the company owns a variety of brands across categories including cleaning, home care, wellness, and lifestyle. You may be surprised to learn that Clorox owns Brita, Burt’s Bees, Glad, Hidden Valley, Kingsford, Pine-Sol, and dozens of other brands.
When Clorox is at the top of its game, it is a diversified conglomerate with high-margin products that lead or are close to leading their categories. Clorox hasn’t been at that level for some time, but it’s getting there again, making now a good time to scoop up shares of this high-quality dividend stock.
Should you invest $1,000 in Emerson Electric right now?
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Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Emerson Electric and NextEra Energy. The Motley Fool has a disclosure policy.
3 Dividend Stocks to Buy Now That Have Raised Their Payouts for at Least 20 Consecutive Years was originally published by The Motley Fool
Bank Of Japan Leaves Interest Rate At 0.25%, Diverging From Fed's 50 Basis Point Cut
In a move closely watched by global markets, the Bank of Japan decided on Friday to maintain its benchmark interest rate at around 0.25%.
What Happened: The decision aligns with predictions from a Reuters poll, where economists anticipated another rate hike by the end of the year.
Following the announcement, the yen remained nearly unchanged at 142.52 against the dollar. The Nikkei 225 index, which had risen by 2%, maintained its level, according to data from Benzinga Pro.
Why It Matters: Last month, BOJ Governor Kazuo Ueda indicated that the central bank would continue to raise interest rates if the economy and inflation met projections.
This stance contrasts with other global central banks, such as the U.S. Federal Reserve, which recently cut interest rates by 50 basis points.
The BOJ had previously maintained near-zero interest rates to stimulate inflation and economic growth. However, it raised the key rates to 0.25% in July, aiming to achieve a 2% inflation target.
Read Next:
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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Saul Centers Declares Quarterly Dividends
BETHESDA, Md., Sept. 19, 2024 /PRNewswire/ — Saul Centers, Inc. BFS has declared a quarterly dividend of $0.59 per share on its common stock, to be paid on October 31, 2024, to holders of record on October 15, 2024. The common dividend is unchanged from the amount paid in the previous quarter and the amount paid in the prior year’s comparable quarter.
The Company also declared quarterly dividends on (a) its 6.125% Series D Cumulative Redeemable Preferred Stock, in the amount of $0.3828125 per depositary share and (b) its 6.000% Series E Cumulative Redeemable Preferred Stock, in the amount of $0.3750000 per depositary share. The preferred dividends will be paid on October 15, 2024, to holders of record on October 1, 2024.
Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. Saul Centers currently operates and manages a real estate portfolio comprised of 61 properties, which includes (a) 57 community and neighborhood shopping centers and mixed-use properties with approximately 9.8 million square feet of leasable area and (b) four land and development properties. Over 85% of the Saul Centers’ property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.
More information about Saul Centers is available on the Company’s website at www.saulcenters.com.
Safe Harbor Statement
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in (i) our Annual Report on Form 10-K for the year ended December 31, 2023, and (ii) our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and include the following: (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (iv) the Company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations and management’s ability to estimate the impact of such changes, (vi) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (vii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (viii) increases in operating costs, (ix) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (x) the reduction in the Company’s income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xi) impairment charges, (xii) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and (xiii) an outbreak or pandemic of any highly infectious or contagious diseases or other public emergencies, and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in (i) our Annual Report on Form 10-K for the year ended December 31, 2023, and (ii) our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.
View original content:https://www.prnewswire.com/news-releases/saul-centers-declares-quarterly-dividends-302253686.html
SOURCE Saul Centers, Inc.
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Matthew E Korenberg At Ligand Pharmaceuticals Executes Options Exercise, Realizing $260K
On September 18, it was revealed in an SEC filing that Matthew E Korenberg, President & COO at Ligand Pharmaceuticals LGND executed a significant exercise of company stock options.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Korenberg, President & COO at Ligand Pharmaceuticals, a company in the Health Care sector, just exercised stock options worth 5,774 shares of LGND stock with an exercise price of $58.49.
Ligand Pharmaceuticals shares are currently trading down by 0.0%, with a current price of $103.68 as of Thursday morning. This brings the total value of Korenberg’s 5,774 shares to $260,951.
Discovering Ligand Pharmaceuticals: A Closer Look
Ligand Pharmaceuticals Inc is a biopharmaceutical company focused on developing and acquiring technologies that aid in creating medicine. The company has partnerships and license agreements with various pharmaceutical and biotechnology companies. Ligand’s business model is based on drug discovery, early-stage drug development, product reformulation, and partnerships. The company’s revenue consists of three primary elements: royalties from commercialized products, license and milestone payments, and sale of its trademarked Captisol material.
Breaking Down Ligand Pharmaceuticals’s Financial Performance
Positive Revenue Trend: Examining Ligand Pharmaceuticals’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 57.52% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.
Profitability Metrics: Unlocking Value
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Gross Margin: The company maintains a high gross margin of 93.0%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): Ligand Pharmaceuticals’s EPS reflects a decline, falling below the industry average with a current EPS of -2.88.
Debt Management: Ligand Pharmaceuticals’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.
Valuation Metrics:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 44.5 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 13.96 is above industry norms, reflecting an elevated valuation for Ligand Pharmaceuticals’s stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Ligand Pharmaceuticals’s EV/EBITDA ratio, surpassing industry averages at 18.86, positions it with an above-average valuation in the market.
Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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Exploring the Significance of Insider Trading
Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes Worth Your Attention
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Ligand Pharmaceuticals’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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