Bank of America Stock vs. JPMorgan Chase Stock: Wall Street Sees Limited Upside in One But Rates the Other a Strong Buy
Incoming President Donald Trump could not be more bullish for bank stocks, which have trailed the broader market for years. Trump could roll back banking regulation, or simply pay less attention to the banks — a change from the scrutiny they’ve received from the Biden Administration. Bank mergers and acquisitions will likely get approved faster, and a Trump presidency and lower interest rates could usher in more deal-making and initial public offering activity, boosting investment banking revenues.
The two largest banks in the U.S., JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC), have already seen their stocks surge roughly 8% and 10%, respectively, since election day. It may not seem like much compared to some of the artificial intelligence high-flyers in today’s market, but it’s a big move for highly liquid, blue chip stocks with modest volatility. After the big move, Wall Street sees limited upside for one of these stocks, but rates the other as a strong buy.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
With roughly $4.2 trillion in assets, JPMorgan Chase is the largest bank in the U.S. The stock has flown roughly 40% this year, which again is a huge move for a stock with a beta roughly in line with the broader market.
Although several banks failed in 2023 due to poor balance sheet management amid the high-interest-rate environment, JPMorgan Chase has benefited. Corporate treasurers and CFOs who didn’t want to have their business at a bank that could fail flocked to large banks like JPMorgan that are too big to fail. Furthermore, the banking crisis enabled JPMorgan to acquire First Republic in an FDIC-assisted deal.
While First Republic would have likely failed had it not been acquired, JPMorgan Chase got a bank with a strong high-net-worth client base. JPMorgan Chase would not have been allowed to do the deal under normal circumstances, because it already has more than 10% of U.S. deposit market share and therefore cannot purchase any more U.S. banks by law. The deal also came with loss-sharing agreements with the FDIC.
Lower interest rates, a friendlier administration, and a steepening of the yield curve should benefit JPMorgan Chase. However, analysts believe the market has already factored these tailwinds into the stock price. Over the last three months, 19 analysts have issued reports on JPMorgan Chase, with 13 rating the stock a buy, five saying to hold the stock, and one saying to sell. The average consensus price target of roughly $234 implies roughly 3% downside.
A RARE OPPORTUNITY TO OWN A HISTORIC PROPERTY IN NEW YORK'S VILLAGE
NEW YORK, Nov. 16, 2024 /PRNewswire/ — /NYR.com// — Greenwich Village originally was a sleepy village outside of New York City. Rich New Yorkers who wanted to escape the growing city moved there to relax. This was in 1820, when only the most southern part of Manhattan was occupied. Today, the “Village” is one of the most desirable parts of Manhattan, surrounded by Tribeca, Soho, and Chelsea, and a quiet oasis in one of the most vibrant commercial centers of the world. Google, Disney, and Facebook built their headquarters within walking distance, and executives from these companies now love to make the Village district their home. The demand for rentals and sales has skyrocketed as new property cannot be built in this protected historic district.
422 Hudson Street, a property that recently came to market, was built in the late 19th century and was lovingly restored, preserving as much historical detail as possible, such as the building’s fully working wood-burning fireplaces, a rarity in New York City.
The latest technology blends with the rich history of the building, providing a unique and contemporary living experience in the three full-floor apartments. Air conditioning throughout, high-speed internet, insulated windows, and modern kitchens with a historic look, make 422 Hudson one of the most exciting properties currently available. Comprehensive renovations like these need to be approved by New York’s strict Landmarks Commission, which often takes years.
The ground floor of the building is rented to LeLaBar, a beloved wine bar and restaurant that has been found at this location for nearly 20 years and which has won numerous awards for its eclectic wine program, including Best Wine Bar of New York City” – but above all, it is known as a relaxed meeting place for locals.
Usually, buildings like these stay in the family. Still, the European owners decided to sell the building to finance their next project, creating an extremely rare opportunity to own a newly renovated historic building. Offered at just over $12 million, the building would provide a 5% net income if fully rented – or the new owners could keep the penthouse for their personal use and generate revenue from the three floors below.
“This exceptional building is looking for a new owner who appreciates its exceptional value, wants to own a piece of New York City’s history, and would like to become the property’s guardian for the next chapter of its story”, says Thomas Guss, the broker who has the listing (TG@NYR.com or +1-212-360-7000 extension 103).
Press Contact:
New York Residence Inc.
+1 212.360.7000
www.NYR.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/a-rare-opportunity-to-own-a-historic-property-in-new-yorks-village-302307641.html
SOURCE NYR.com
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Russia's Gazprom stops the flow of natural gas to Austria, OMV utility says
VIENNA (AP) — Russia’s state-owned natural gas company Gazprom stopped supplies to Austria early Saturday, according to the Vienna-based utility OMV, after OMV said it would stop payments for the gas following an arbitration award.
The official cutoff of supplies before dawn Saturday came after Austrian Chancellor Karl Nehammer on Friday held a hastily called news conference to emphasize his country has a secure supply of alternative fuel for this winter.
OMV said it would stop paying for Gazprom gas to its Austrian arm to offset a 230 million-euro ($242 million) arbitration award it won from the International Chamber of Commerce over an earlier cutoff of gas to its German subsidiary.
The Austrian utility said in an email that no gas delivery was made from 6 a.m. on Saturday.
OMV said Wednesday it has sufficient stocks to provide gas to its customers in case of a potential disruption by Gazprom, and said storage in Austria was more than 90% full.
“Once again Putin is using energy as a weapon,” EU Commission President Ursula von der Leyen wrote in a post on X, formerly known as Twitter. “He is trying to blackmail Austria & Europe by cutting gas supplies. We are prepared for this and ready for the winter.”
Russia cut off most natural gas supplies to Europe in 2022, citing disputes over payment in rubles, a move European leaders described as energy blackmail over their support for Ukraine against Russia’s invasion.
European governments had to scramble to line up alternative supplies at higher prices, much of it liquefied natural gas brought by ship from the U.S. and Qatar.
Austria gets the bulk of its natural gas from Russia, as much as 98% in December last year, according to Energy Minister Lenore Gewessler.
Prediction: Acquisitions Will Skyrocket Under The Trump Administration. Here's 1 Pharmaceutical Company I Have My Eyes On.
The 2024 presidential election and President-elect Donald Trump is headed back to Washington. The Republican party also won control of the Senate and the House of Representatives.
If Trump’s previous tenure in the Oval Office is an indicator for what can be expected, there’s a good chance for a less stringent regulatory environment.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
One of my big predictions under a Trump presidency is that mergers and acquisitions (M&A) will see a notable uptick. Below, I’ll explain the factors that inhibited deal activity in recent years and make the case for why M&A could make a comeback. In addition, I’ll outline why Viking Therapeutics (NASDAQ: VKTX) is an obvious acquisition candidate.
Before I became a writer at The Motley Fool, I spent a decade working on M&A deals at investment banks and start-ups. While companies are always curious about what strategic opportunities are out there, there are a number of factors that determine whether an acquisition makes financial sense.
During the past few years, M&A deal flow has been particularly sensitive to the following:
-
Interest rates: Between March 2022 and July 2023, the Federal Reserve raised interest rates a total of 11 times. Broadly speaking, companies rarely have enough cash on the balance sheet to finance a large-scale acquisition (deals in excess of $10 billion). In these circumstances, a company will turn to a bank or group of banks that lend the business capital to fund the deal. However, such an approach to dealmaking has been less appealing in recent years due to the high-interest-rate environment.
-
Inflation: The Fed’s consistent rate hikes were aimed at curbing inflation, which reached relatively high levels in the past few years. An inflationary environment isn’t the best time to make an acquisition as it just adds another layer of complexity during an otherwise challenging time to navigate.
-
Valuation: Despite a tough macroeconomic environment, the stock market has remained resilient. The S&P 500 has hit 50 record highs just this year. With valuations soaring across all industry sectors, it makes sense for acquisition appetites to dwindle. Companies want to avoid taking on expensive debt and overpaying for an asset.
-
Image source: Getty Images.
I see two catalysts that could reignite M&A under the Trump administration. First, back in September, the Fed finally started cutting interest rates. The initial 50-basis-point reduction was complemented by another 0.25% earlier this month. This all comes as inflation rates continue to show signs of cooling after peaking at about 9% back in the summer of 2022.
Investors Are Piling Into Palantir Stock After Revenue Soars. Should You Follow?
Palantir (NYSE: PLTR) has been one of the hottest stocks of the year, rising around 275% as of the time of writing. However, a massive chunk of that gain came right after Palantir’s blowout third-quarter earnings; the stock rose 23% the next day. But that strength has continued well past the day following earnings, as the stock is now up 56% since the company announced outstanding results on Nov. 4.
Clearly, many investors are piling into Palantir’s stock, but is that a good idea? After all, the stock has seen a massive run-up and has sky-high expectations built into it.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
Palantir is an artificial intelligence (AI) company that made a name for itself by creating custom AI models for the government. Eventually, it expanded to the commercial space. As of Q3, government business still makes up the majority of its revenue, but it’s a very close split, with government revenue making up 56%.
Palantir’s AI model gives decision-makers real-time guidance based on the data it receives. This is useful in any situation where real-time decisions must be made quickly and accurately. Considering that’s a huge chunk of what governments and businesses do, it makes sense that Palantir’s business is rapidly growing, with many clients rushing to implement AI into their systems.
Another key product Palantir has introduced is its Artificial Intelligence Platform (AIP). AIP allows its clients to integrate AI throughout a business’s inner workings, making AI a tool that isn’t just used on the side. That’s a key differentiator from many AI products available and has been a big reason for Palantir’s blowout results.
In Q3, Palantir’s revenue rose 30% year over year to $726 million. In particular, U.S. commercial revenue rose 54% year over year. Should this demand spread worldwide, it wouldn’t be out of line to see its overall revenue growth accelerate to that level.
Furthermore, Palantir isn’t a growth-at-all-costs business. It is highly profitable and delivered a 20% profit margin in Q3.
These are fantastic results that investors should cheer on. However, if the stock’s exuberance has priced in all future growth, then there’s no reason to own it moving forward. I’m worried that we’ve reached that point, as the expectations built into Palantir’s stock are quite lofty.
While 30% revenue growth is impressive, it’s not that impressive. AI leader Nvidia saw multiple quarters where its revenue growth was above 200%, and even as it’s slowing down, Nvidia is still projected to grow its revenue by about 80% next quarter.
When to Take Your First RMD: A Guide to Getting It Right
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below.
You may not be thinking about required minimum distributions (RMDs) throughout your career, but chances are that they’ll be on your mind once you hit your 70s.
The IRS requires you to begin taking annual withdrawals from traditional IRAs, 401(k)s and other tax-deferred retirement accounts. When you must take your first RMD depends on your age. While RMDs currently begin at age 73, that won’t always be the case. Under the SECURE 2.0 Act, the RMD age is set to increase to 75 in 2033.
RMDs are a critical part of retirement planning. A financial advisor can help you prepare for these mandatory withdrawals, which can have a significant impact on your taxes.
On the face of it, the mechanics of RMDs are simple: The account holder takes out a certain percentage of the tax-deferred money based on their account balances at the end of the previous year. That amount is divided by the account holder’s life expectancy factor – a number computed by the IRS – to produce the RMD amount.
For example, the IRS life expectancy for a 74-year-old person is 25.5. If their IRA balance was $200,000 on Dec. 31 of the previous year, their RMD amount would be $7,843.
That’s just simple math. When you’re required to take your first RMD, on the other hand, is a little more complicated:
-
Those born before July 1, 1949, had to take their first RMD at age 70 ½, which means those folks should already be taking distributions.
-
Those born between July 1, 1949 and 1950 had to start their RMDs at age 72, and also should have already done so.
-
Anyone born between 1951 and 1959 must take their first RMD by April 1 of the year after they turn 73.
-
Anyone born in 1960 or later must take their first RMD by April 1 of the year after they turn 75.
As you can see, the IRS allows you to postpone your first RMD until April 1 of the year after you are required to begin distributions. For anyone born in 1951, their RMDs start this year but they can wait until April 1, 2025, to make the actual withdrawal. After that, each annual withdrawal needs to happen before the end of the year, which means anyone who postpones their first RMD in 2024 will need to make a second withdrawal before the end of 2025.
Keep in mind that a financial advisor can help you build a comprehensive retirement plan, accounting for RMDs as part of it.
This raises the question of whether it’s better to postpone your first RMD. In some cases, it can make sense. If your spouse is still working but plans to retire next year, postponing the first RMD means you might be in a lower tax bracket by April 1 of the following year.
Should You Buy Micron Stock After the Dip? Wall Street Has a Clear Answer for Investors.
Micron Technology (NASDAQ: MU) stock surged nearly 80% in early 2024 and reached an all-time high of $153.14 on solid adoption of its high-performance memory products in the data economy. Despite this success, the stock is currently down by almost 32% from those highs.
Investors were disappointed with the company’s fiscal 2024 third-quarter results (ended May 30), especially AI sales which fell short of lofty expectations. Furthermore, geopolitical and supply chain challenges plaguing the overall semiconductor industry also did not help overall investor sentiment for Micron.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
The difficult days, however, may now become a thing of the past. Micron came out with impressive results for its fiscal 2024’s fourth quarter (ended Aug. 29) in late September, with revenue and earnings beating analysts’ estimates. The company has been a major beneficiary of the explosive demand for memory and data storage products in various applications such as high-performance computing, autonomous driving, data analytics, and complex AI models.
This is evident considering that the company’s high-margin high-bandwidth memory (HBM) chip inventory (a type of dynamic random access memory or DRAM chip) is already sold out until 2025.
Wall Street is also optimistic about Micron. For the 44 analysts covering Micron stock, the median target price is $145.96, implying an upside of 40% from here. This seems to be a plausible target, considering the many strengths of Micron stock. Here’s why Micron is well poised to surge in the coming months.
Data center server unit shipments are expected to grow in 2024, driven by increasing demand for AI and traditional servers. Data centers are also expected to replace multiple older-generation servers with fewer latest-generation traditional servers for performance improvements, higher power efficiency, and better space management.
Plus, DRAM and NAND content in conventional and AI servers is rising to meet the memory demands of complex applications in areas such as cloud computing, artificial intelligence, and 5G connectivity. All these trends bode extremely well for Micron’s memory offerings.
Micron has been at the forefront of leveraging this growing opportunity. The company is investing capital in the advanced one-beta DRAM node technology as well as G8/G9 NAND process technology to increase the production capacity of its high-margin DRAM offerings, including Double Data Rate 5 (DDR5), Low Power Double Data Rate 5 (LPDDR5), and HBM chips, as well as advanced NAND chips.
Michelle Obama wants to help older adults looking for love
Upcoming Netflix docuseries ‘The Later Daters’ showcases six divorcees and widowers on blind dates
PACS Investor Alert: A Securities Fraud Class Action Lawsuit Has Been Filed Against PACS Group, Inc.- Contact Kessler Topaz Meltzer & Check, LLP
RADNOR, Pa., Nov. 16, 2024 (GLOBE NEWSWIRE) — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against PACS Group, Inc. (“PACS”) PACS. The lawsuit is brought on behalf of investors who purchased or otherwise acquired PACS: 1) common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with PACS’ April 11, 2024 initial public offering (the “IPO”); and/or 2) securities between April 11, 2024 and November 5, 2024 inclusive (the “Class Period”). The lead plaintiff deadline is January 13, 2025.
CONTACT KESSLER TOPAZ MELTZER & CHECK, LLP:
If you suffered PACS losses, you may CLICK HERE or go to: https://www.ktmc.com/new-cases/pacs-group-inc?utm_source=PR&utm_medium=link&utm_campaign=pacs&mktm=r
You can also contact attorney Jonathan Naji, Esq. by calling (484) 270-1453 or by email at info@ktmc.com.
DEFENDANTS’ ALLEGED MISCONDUCT:
The complaint alleges that, in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) PACS engaged in a scheme to submit false Medicare claims which drove more than 100% of PACS’ operating and net income from 2020 – 2023; (2) the company engaged in a scheme to bill thousands of unnecessary respiratory and sensory integration therapies to Medicare; (3) PACS engaged in a scheme to falsify documentation related to licensure and staffing; and (4) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
THE LEAD PLAINTIFF PROCESS:
PACS investors may, no later than January 13, 2025, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP encourages PACS investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE OR GO TO: https://www.ktmc.com/new-cases/pacs-group-inc?utm_source=PR&utm_medium=link&utm_campaign=pacs&mktm=r
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaints in this action were not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
info@ktmc.com
May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This week in Bidenomics: Uh-oh, reflation
Is the dragon slain? Or just wounded?
Inflation has been the scourge of the economy for the last three years. It spiked from a benign 1.4% when President Biden took office in 2021 to a searing 9% some 18 months later. The Federal Reserve took aim with speedy interest rate hikes, and it seemed to work. By September, inflation was down to 2.4%, almost in the normal zone.
Then, an upward blip. The latest data shows inflation ticked back up to 2.6% in October. That could be a spot on the X-ray that turns out to be nothing. Or it could signal that inflation is making a comeback, which would scramble the outlook for interest rates, financial markets, and the policies of the incoming Trump administration.
The inflation uptick in October wasn’t a fluke based on hurricanes or other one-time anomalies. Most important goods and services categories rose, including food, energy, rent, and vehicles. This came one month after the Fed basically declared victory over inflation. In September, the Fed reversed monetary policy and started cutting interest rates, signaling that the time had come to worry more about keeping growth humming than about getting prices down.
The Fed is staying the course for now. It cut short-term rates again on Nov. 14 and may do so again at its next policy meeting in December. But the odds of more rate cuts are dropping, with policymakers waiting for more lab results in the form of forthcoming inflation data.
“Inflation might soon be front-page news again,” Capital Economics announced in a Nov. 13 analysis. The forecasting firm argues that the currently inflationary trend is OK, but the future outlook is more worrisome — in large part because of what Donald Trump plans to do once he takes office next January.
At least two elements of Trump’s agenda are inflationary: new tariffs on imports and the mass deportation of undocumented migrants. Tariffs are taxes that raise the cost of imported goods directly. Deporting migrants would reduce the size of the labor force, especially targeting lower-wage workers. Replacing them with workers who might demand higher pay — or with costly machines — would raise costs one way or another, with producers passing as much as they could on to consumers.
A third inflation concern is Trump’s desire to cut taxes further, which can have a stimulus effect by putting more money in people’s pockets, boosting spending and demand and sometimes leading to higher prices.
Drop Rick Newman a note, follow him on Twitter, or sign up for his newsletter.
“Given all that President-elect Trump has promised to do quickly — such as hike tariffs, cut taxes further and slash immigration — one can easily foresee a re-acceleration of inflation next year,” Bernard Baumohl, chief global economist at Economic Outlook Group, wrote on Nov. 13. “The Federal Reserve is now in a real quandary.”