It hasn't been the best quarter for The Mosaic Company (NYSE:MOS) shareholders, since the share price has fallen 10% in that time. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 74% in that time.
So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.
View our latest analysis for Mosaic
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Mosaic went from making a loss to reporting a profit, in the last year.
When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).
We doubt the modest 0.9% dividend yield is doing much to support the share price. We think that the revenue growth of 15% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Mosaic is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
We're pleased to report that Mosaic shareholders have received a total shareholder return of 75% over one year. Of course, that includes the dividend. That's better than the annualised return of 5% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Mosaic (of which 1 is a bit concerning!) you should know about.
We will like Mosaic better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
In this article, we discuss the 10 trending stocks on Reddit. If you want to skip our detailed analysis of these stocks, go directly to the 5 Trending Stocks on Reddit.
The finance world has been rocked in recent months by the dramatic influx of retail investors on the marketplace. According to a report by professional services firm Deloitte, the COVID-19 pandemic played a central part in this story, as more than 10 million Americans opened a brokerage account in 2020. In January 2021, at the height of a GameStop short squeeze saga, nearly six million Americans downloaded an online trading application. These retail investors strategize on social media platforms like Reddit.
Reddit forums have thus gained in importance around Wall Street and even hedge funds have started monitoring them to keep abreast of trending stocks. Data intelligence firm Morning Consult revealed in a report last year that individual investors were responsible for more than 20% of all stock trading last year, a value that has more than doubled when compared to ten years ago. The dynamics within the retail investor boom also make for interesting reading. A Charles Schwab survey claims that 50% of all new investors are millennials.
These investors favor pouring money into growth stocks. Some of the top trending stocks on Reddit include Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), and Chewy, Inc. (NYSE: CHWY), among others. Robinhood, the most popular stock trading application, has tens of millions of funded accounts, but smaller brokerage firms like Schwab, Vanguard, and Fidelity have also reported a dramatic increase in young users trading through their platforms.
There is little doubt that retail investors have transformed the financial landscape. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Image by Sergei Tokmakov Terms.Law from Pixabay
With this context in mind, here is our list of the 10 trending stocks on Reddit. They were picked keeping in mind the hype around the companies on Reddit forum WallStreetBets.
The hedge fund sentiment around the stocks was gauged using data of 873 hedge funds tracked by Insider Monkey. The list is compiled according to the hedge fund holders in each stock.
The analyst ratings of the companies and their basic business fundamentals are also discussed to provide readers with some more context for their investment decisions.
Trending Stocks on Reddit
10. Tattooed Chef, Inc. (NASDAQ: TTCF)
Number of Hedge Fund Holders: 7
Tattooed Chef, Inc. (NASDAQ: TTCF) is placed tenth on our list of 10 trending stocks on Reddit. The firm markets plant-based foods and operates from California.
In earnings results for the second quarter, posted on August 12, Tattooed Chef, Inc. (NASDAQ: TTCF) reported a revenue of more than $50 million, up close to 46% compared to the revenue over the same period last year.
At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $38 million in Tattooed Chef, Inc. (NASDAQ: TTCF), down from 10 in the preceding quarter worth $58 million.
Just like Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), and Chewy, Inc. (NYSE: CHWY), Tattooed Chef, Inc. (NASDAQ: TTCF) is gaining in popularity on Reddit forums.
9. Lithium Americas Corp. (NYSE: LAC)
Number of Hedge Fund Holders: 9
Lithium Americas Corp. (NYSE: LAC) is ranked ninth on our list of 10 trending stocks on Reddit. The firm operates as a resource company and is headquartered in Canada.
On August 30, investment advisory Cowen maintained an Outperform rating on Lithium Americas Corp. (NYSE: LAC) stock and raised the price target to $19 from $17, noting the high pricing of lithium products as a major growth catalyst for the firm.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Axel Capital Management is a leading shareholder in Lithium Americas Corp. (NYSE: LAC) with 408,130 shares worth more than $6 million.
Alongside Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), and Chewy, Inc. (NYSE: CHWY), Lithium Americas Corp. (NYSE: LAC) is also occupying retail investor interest on Reddit forums.
In its Q1 2021 investor letter, Massif Capital, an asset management firm, highlighted a few stocks and Lithium Americas Corp. (NYSE: LAC) was one of them. Here is what the fund said:
“Lithium Americas: The volatility noted above in LAC has resulted in solid returns via our options trades around our core equity position. At the current time, we are short calls on LAC, as we have done multiple times throughout the position’s life, expiring on May 21, 2021, at a $17.5 and $22.5 strike price. The volume of contracts sold at each strike corresponds to the size of the equity position we want should the calls expire in the money, and the underlying equity gets called away from us. The thought process behind this trade construction is that if we know the size of the position we want at a particular price point, there is no reason not to accumulate additional returns by pre-selling the stock we would have sold anyway.
High levels of volatility positively impact the price of options, increasing the premium we can earn from selling covered calls. To date, we have sold covered calls on LAC that have expired worthless four times, yielding a roughly 7% return on the equity position’s current value or 71bps for the portfolio overall. The outstanding covered calls appear to be trending towards a similar worthless expiration. If they do, the covered call trades on LAC will result in us owning the shares with committed capital of -$0.28 per share.
Although we believe in the fullness of time LAC warrants a $30+ valuation, the prices achieved in early January of this year were not justified by the underlying fundamentals. Some will argue we should have sold down our position. We had already established our option positions and believe LAC is an emerging major in the lithium mining industry. Thus, we decided to maintain the position unchanged. Although still relatively high, the current $15 per share valuation is not crazy compared to where we think the firm should be trading based on fundamentals, so we are no longer overly concerned with the position as is.
LAC management also took advantage of the volatility issuing stock on January 22 for $22 a share. The ~$400 million in proceeds will be used to develop Thacker Pass, the US-based clay lithium deposit, which will likely be the largest producing Lithium mine in America when turned on. In our opinion, the stock issuance could not have come at a better time. LAC management has advanced the project through various development stages (de-risking), but with the share issuance, they have significantly reduced the need to bring in an outside partner to develop the asset as the first phase of the project is expected to cost roughly $581 million. After-tax and at an 8% discount rate, the Thacker Pass project’s present value is approximately $2.6 billion (the firm’s current market capitalization is $1.5 billion). Although the share issuance was dilutive, increasing the total shares by 17%, we believe it will, in the long run, prove a forward-looking, value-additive decision by management.
The lithium market remains an area of interest and focus for us. This reflects our belief that the most exciting investment opportunities to capture secular trends in EV’s and batteries are found upstream in the mining industry. It is also a reflection that there is a greater diversity of lithium investment opportunities relative to other battery metals.”
8. McAfee Corp. (NASDAQ: MCFE)
Number of Hedge Fund Holders: 18
McAfee Corp. (NASDAQ: MCFE) is a California-based integrated security solutions provider. It is placed eighth on our list of 10 trending stocks on Reddit.
On June 17, investment advisory Mizuho kept a Buy rating on McAfee Corp. (NASDAQ: MCFE) stock and raised the price target to $30 from $28, citing appreciation of comp multiples as the reason behind the ratings update.
At the end of the second quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $125 million in McAfee Corp. (NASDAQ: MCFE), up from 17 in the previous quarter worth $174 million.
In addition to Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), and Chewy, Inc. (NYSE: CHWY), McAfee Corp. (NASDAQ: MCFE) has been one of the most hyped stocks on Reddit in recent weeks.
7. SmileDirectClub, Inc. (NASDAQ: SDC)
Number of Hedge Fund Holders: 19
SmileDirectClub, Inc. (NASDAQ: SDC) is a Tennessee-based oral care company. It is ranked seventh on our list of 10 trending stocks on Reddit.
On August 5, investment advisory Credit Suisse assumed coverage of SmileDirectClub, Inc. (NASDAQ: SDC) stock with an Outperform rating and a price target of $11. Vik Chopra, an analyst at the firm, issued the ratings update.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $135 million in SmileDirectClub, Inc. (NASDAQ: SDC), down from 21 in the preceding quarter worth $177 million.
Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), and Chewy, Inc. (NYSE: CHWY) are some of the trending stocks on Reddit, along with SmileDirectClub, Inc. (NASDAQ: SDC).
6. DTE Energy Company (NYSE: DTE)
Number of Hedge Fund Holders: 32
DTE Energy Company (NYSE: DTE) is placed sixth on our list of 10 trending stocks on Reddit. The firm generates and distributes electricity. It is headquartered in Michigan.
On August 5 investment advisory Mizuho maintained a Buy rating on DTE Energy Company (NYSE: DTE) stock and raised the price target to $126 from $123, appreciating the earnings results of the company for the second quarter of 2021.
At the end of the second quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $469 million in DTE Energy Company (NYSE: DTE), up from 26 in the preceding quarter worth $205 million.
Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), and Chewy, Inc. (NYSE: CHWY) are trending on Reddit, just like DTE Energy Company (NYSE: DTE).
Click to continue reading and see 5 Trending Stocks on Reddit.
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Disclosure. None. 10 Trending Stocks on Reddit is originally published on Insider Monkey.
(Bloomberg) —
A unit of Guinea’s military seized power and suspended the constitution, destabilizing a key source of the raw material used to make aluminum.
The head of special forces in the West African nation, Colonel Mamady Doumbouya, announced the takeover on state television on Sunday, imposed a curfew of 8 p.m. local time and urged the armed forces to back him. The action was taken to address financial mismanagement and corruption in Guinea under President Alpha Conde, he said, adding that the deposed leader is safe and has been in contact with his doctors.
“If you see the condition of our roads, of our hospitals, you realize that it is time for us to wake up,” Doumbouya said. “We are going to initiate a national consultation to open an inclusive and peaceful transition.”
Guinea vies with Australia as China’s largest supplier of bauxite, which is used to make alumina and eventually aluminum. The country shipped 82.4 million tons of the mineral globally last year, according to government data. Much of that went to China, which is the world’s biggest aluminum-consuming country.
Aluminium prices on the London Metal Exchange rose as much as 1.8% to $2,775.50 a ton, the highest since May 2011, before trading at $2,749. In China, futures jumped as much as 3.4% to the highest since 2006. Chinese aluminum stocks also rallied, with Aluminum Corp. of China shares up as much as 10% in Hong Kong.
The military takeover “might have a speculative impact on the price of aluminum but will have a bigger impact on the alumina price because it’s more immediately exposed to the event,” said Tom Price, head of commodities strategy at Liberum Capital Ltd. “It’s an event which will create a new risk of security to supply.”
Aluminum has jumped about 50% over the past year in London and is near the highest in a decade. Prices have rallied as a global economic recovery from the effects of the pandemic and Chinese output restrictions stoked demand. The energy-intensive aluminum industry has been targeted in China as the government seeks to conserve electricity and curb emissions, while a seasonal power crunch has also dented production.
Companies including United Co. Rusal have invested heavily to extract Guinea’s abundant iron-ore and bauxite reserves. Rio Tinto Group, the world’s largest miner, has been looking at ways to exploit Simandou, the biggest undeveloped iron-ore deposit. Johannesburg-based AngloGold Ashanti Ltd. owns the Siguiri gold mine in Guinea, its only asset in the country.
Rusal’s spokesman declined to comment on the military takeover, but said it could have an impact on output. Guinea accounted for about 9% of the alumina produced by Rusal in the first half of 2021, according to the company.
The U.S. State Department condemned the coup and called for a peaceful national dialogue to “enable a peaceful and democratic way forward for Guinea to realize its full potential.” United Nations Secretary-General Antonio Guterres also blasted the military takeover.
Leaders of two African blocs have pushed for the release of Guinea’s president. Leaders of the Economic Community of West African States also threatened sanctions against Guinea, Chairman Nana Akufo-Addo said in a statement.
The regional political and economic body “condemns with the greatest firmness, and also demands a return to constitutional order,” Akufo-Addo, who’s also Ghana’s president, added.
The African Union also called for its Peace and Security Council to meet urgently over the matter.
Doumbouya’s TV appearance bore a resemblance to a similar scene in August 2020, when a Malian junta removed President Ibrahim Keita after blaming him for the country’s socio-economic problems. And in April, Chad’s army seized power after the death of President Idriss Deby.
The military takeover in Guinea on Sunday came hours after heavy gunfire erupted near the presidential palace in the capital, Conakry, in the morning.
Conde’s government said in a statement before Doumbouya’s announcement that the presidential guard, backed by the nation’s security forces, had repulsed the attack by the “insurgents” and called for calm.
Conde, 83, was sworn in December for a third term in office, vowing to fight corruption. Initially hailed when he came to power in 2010 for ushering in democratic rule, he was allowed to run for a controversial third term last year after a referendum, backed by Russia, led to a change in the constitution.
A former educator, Conde has increasingly cracked down on opponents as opposition against his rule has grown.
(Adds aluminium price in fifth paragraph)
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The Mosaic Company MOS recently announced that its North American phosphate operations are expected to be negatively impacted by the damage caused by Hurricane Ida.
The company apprehends that wind damage to the Faustina and Uncle Sam facilities from the storm will cause a decline in production as repairs are expected to be finished over the next 8 to 9 weeks.
Compared with historical averages, production in the third quarter is anticipated to decline by roughly 300,000 tons. Fourth-quarter operating rates are projected to improve sequentially, but production may still be down from historical averages, Mosaic noted. The projection also includes estimates of production loss from an August equipment failure at the company's New Wales facility in Florida.
Mosaic intends to provide an update, including estimated financial impacts of the hurricane, when it reports third-quarter results.
The hurricane also led to navigational issues on the Mississippi River, which may result in congestion during the busy fall application season and might create logistical risks for the company's production.
Shares of Mosaic have gained 73.5% in the past year compared with 51.8% rise of the industry.
Image Source: Zacks Investment Research
Mosaic, in its last earnings call, stated that it expects strong agricultural trends to continue through the second half of 2021, driving demand for fertilizers. Grower economics remain attractive in most global growing regions on strong crop demand, affordable inputs and favorable weather, the company noted.
The company predicts $90-$100 per ton improvement in average realized price in the Phosphates segment sequentially in the third quarter. For the Potash segment, the company expects an improvement of $25-$35 per ton in average realized prices in the third quarter.
The Mosaic Company Price and Consensus
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
Zacks Rank & Other Key Picks
Mosaic currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation NUE, Dow Inc. DOW and Cabot Corporation CBT.
Nucor has a projected earnings growth rate of around 478.7% for the current year. The company’s shares have soared 143.1% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403% for the current year. The company’s shares have gained 27.9% in the past year. It currently flaunts a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 36.7% in the past year. It currently carries a Zacks Rank #2 (Buy).
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To read this article on Zacks.com click here.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Mosaic (MOS) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this fertilizer maker a great growth pick right now.
Earnings Growth
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Mosaic is 7.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 450.6% this year, crushing the industry average, which calls for EPS growth of 156.3%.
Impressive Asset Utilization Ratio
Asset utilization ratio — also known as sales-to-total-assets (S/TA) ratio — is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Mosaic has an S/TA ratio of 0.5, which means that the company gets $0.5 in sales for each dollar in assets. Comparing this to the industry average of 0.48, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Mosaic is well positioned from a sales growth perspective too. The company's sales are expected to grow 44.6% this year versus the industry average of 28.8%.
Promising Earnings Estimate Revisions
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Mosaic have been revising upward. The Zacks Consensus Estimate for the current year has surged 15.6% over the past month.
Bottom Line
While the overall earnings estimate revisions have made Mosaic a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Mosaic well for outperformance, so growth investors may want to bet on it.
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The Mosaic Company (MOS) : Free Stock Analysis Report
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Friday, September 3, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Verizon Communications Inc. (VZ), CVS Health Corporation (CVS), and BHP Group (BHP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Verizon shares have lagged the Zacks Wireless Industry over the last 6 months (+0.9% vs. +2.6%), but the Zacks analyst believes that the company is poised to benefit from a disciplined network strategy and a customer-centric business model. Supported by a focused roadmap for technology leadership, the company witnessed a healthy demand curve across core businesses. Verizon expects to continue this momentum, driven by diligent execution of operational plans along with dedicated 5G endeavors.
However, Verizon operates in an intensely competitive U.S. wireless market that strains margins. Hefty expenses on promotions and lucrative discounts to attract customers hamper its profitability. The high auctioning expenses for the mid-band spectrum is likely to further compromise Verizon’s margins.
(You can read the full research report on Verizon here >>>)
Shares of CVS Health have modestly outperformed the Zacks Retail – Pharmacies and Drug Stores industry in the last three months (+0.6% vs. -1.5%). In fact, CVS Health's second-quarter earnings and revenues surpassed the Zacks Consensus Estimate. Revenues across all the three operating segments in the second quarter performed ahead of the company’s expectations. Increased full-year guidance is indicative of this bullish trend to continue through the rest of 2021.
The company noted that, consumer-centric digital strategy has become more relevant in the current environment as people are using technology more while staying indoors. The Zacks analyst believes that in the second quarter, the company has achieved higher levels of engagement across digital assets. However, second-quarter adjusted earnings declined year over year on escalating costs and expenses which are putting pressure on both the margins. Also, the repeal of the HIF for 2021 hampered growth.
(You can read the full research report on CVS Health here >>>)
BHP Group shares have gained +15.2% over the past year against the Zacks Mining – Miscellaneous industry’s gain of +17.1%. In fact, BHP Group’s iron ore production in fiscal 2021 rose 2% to 254 Mt (million tons) aided by record production at Western Australia Iron Ore (WAIO). In fiscal 2022, the company expects to produce between 249 Mt and 259 Mt of iron ore backed by productivity improvements at WAIO.
The Zacks analyst believes that higher input costs and the recent drop in iron ore prices due to curbs on steel production in China remains a concern. Nevertheless, BHP Group will gain on efforts to make operations more efficient through smart technology adoption across the entire value chain and focus on lowering debt.
(You can read the full research report on BHP Group here >>>)
Other noteworthy reports we are featuring today include Expeditors International of Washington, Inc. (EXPD), Autodesk, Inc. (ADSK) and DISH Network Corporation (DISH).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
DISH Network Corporation (DISH) : Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Autodesk, Inc. (ADSK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
(Adds comment from Lithium Americas CEO)
By Ernest Scheyder
Sept 3 (Reuters) – A U.S. federal judge ruled on Friday that Lithium Americas Corp may conduct excavation work at its Thacker Pass lithium mine site in Nevada, denying a request from Native Americans who said the digging would desecrate an area they believe holds ancestral bones and artifacts.
The ruling from Chief Judge Miranda Du was the second victory in recent weeks for the project, which could become the largest U.S. source of lithium, used in electric vehicle batteries.
The court is still considering the broader question of whether former President Donald Trump's administration erred when it approved the project in January. That ruling is expected by early 2022.
Du said the Native Americans did not prove the U.S. government failed to properly consult them during the permitting process. Du in July denied a similar request from environmentalists.
Du said, though, that she was not dismissing all the Native Americans' arguments, but felt bound by existing laws to deny their request.
"This order does not resolve the merits of the tribes' claims," Du said in her 22-page ruling.
Vancouver-based Lithium Americas said it would protect and preserve tribal artifacts.
"We've always been committed to doing this the right way by respecting our neighbors, and we are pleased today's ruling recognizes our efforts," Lithium Americas Chief Executive Jon Evans told Reuters.
No digging can take place until the U.S. Bureau of Land Management issues an Archeological Resources Protection Act permit.
The Burns Paiute Tribe, one of the tribes that brought the lawsuit, noted that the bureau told the court last month that the land holds cultural value for Native Americans.
"If that's the case, well then there's going to be harm if you start digging into the landscape," said Richard Eichstaedt, an attorney for the Burns Paiute.
Representatives for the bureau and two other tribes who sued were not immediately available to comment. (Reporting by Ernest Scheyder; Editing by David Gregorio and Rosalba O'Brien)
The giant mining company is making changes to its business, and it seems investors are unenthusiastic about its plans.
Miners are bringing about radical changes to mining operations with the help of technology and automation, in an effort to increase productivity and efficiency, reduce costs, and improve frontline safety. More importantly, these efforts will help the industry meet its sustainability target by cutting down on carbon emissions, which is the need of the hour considering the severity of climate change.
To this end, Brazilian miner Vale S.A VALE announced that it has started operating six autonomous haul trucks in Carajás — its largest iron ore complex in Brazil and plans to take it up to 10 vehicles by this year-end. These autonomous trucks have the capability of moving 320 metric tons at a time. These have been undergoing tests in an isolated area in Carajás since 2019. Following the final testing phase at the N4E mine last week, the plan went live on Sep 1 this year. At the Carajás Complex, Vale already has four autonomous drills in operation. The company has plans to increase it to seven drills.
This follows the success of the autonomous operation at Vale’s second largest mine, Brucutu, in Minas Gerais, Brazil, in 2016. It was the first mine in Brazil to run with 100% autonomous operations. In July this year, the 13 haul trucks in operation at the mine achieved the milestone of moving 100 million tons of material since their introduction. Impressively, no accident has been reported by the trucks over the past five years as well.
The move is not only ensuring safety in mining but also aiding the company in attaining its goal of reducing carbon emissions by 33% until 2030. Autonomous trucks offer increased machine and tire life, higher speed than traditional vehicles while consuming less fuel. This leads to lower carbon dioxide and particulate emissions. They offer higher hourly productivity and will lower maintenance costs as well.
Vale has earmarked $34 million this year for its autonomous program. By the end of the year, 23 trucks, 21 drills and four stocking yards (stackers and reclaimers) will be in operation across the company in four Brazilian states (Pará, Minas Gerais, Maranhão and Rio de Janeiro).
Mining giant, BHP Group BHP has been operating a fully-autonomous truck fleet at its Western Australian Jimblebar mine since 2017. The site is now one of the safest operations in its portfolio, with significant events involving trucks at Jimblebar having dropped by more than 90% since the introduction of autonomous haulage. Following its success, BHP is implementing the transition of an autonomous fleet of up to 86 trucks at its Goonyella Riverside coal mine in Queensland in a phased roll out over the 2021-2022 period. The company has announced that it will introduce 20 autonomous trucks at its Newman East (Eastern Ridge) mine in Western Australia.
Rio Tinto plc Plc RIO boasts of the world’s first automated heavy-haul rail network named AutoHaul, which was capable of moving about one million ton of iron ore a day in 2019. About one-third of the haul truck fleet across its Pilbara sites is autonomous as well. It continues to expand its Autonomous Drilling System (ADS), which currently has a fleet of 26 production drills across seven sites. It intends to make the Gudai-Darri iron ore mine in Western Australia’s Pilbara region one of the world’s most technologically advanced mines. Rio Tinto has joined forces with Caterpillar Inc. CAT to deploy the world’s first fully autonomous water truck at the mine. Water spraying is a vital part of mining operations, thus, this will enhance productivity by enabling digital tracking of water consumption and cutting down water wastage. Caterpillar’s three water trucks will join Gudai-Darri’s fleet of Caterpillar heavy mobile equipment including autonomous haul trucks and production drills.
Last year, Newmont Mining Corporation NEM announced investment in implementation of the Autonomous Haulage System at Boddington mine in Australia to enhance safety and productivity, while extending mine life. Once operational, Boddington will be the first open pit gold mine in the world with a fully autonomous haul truck fleet.
Given its benefits to the miners, the driverless fleet is becoming increasingly popular among miners. The number of autonomous trucks is expected to surge over the next few years, thanks to major investments by miners globally.
BHP, Vale, Rio Tinto and Newmont currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The fertilizer industry is on a solid footing buoyed by strong global demand and prices for crop nutrients. Strong agricultural market trends, a rally in crop commodity prices and attractive farm economics are spurring demand for fertilizers globally. Demand for fertilizers is also backed by the need to grow the production of grains to address rising consumption. A tight global supply-demand balance is also driving fertilizer prices.
Strong global demand coupled with supply constraints have provided a boost to crop commodity prices. Prices of corn and soybean have rallied to multi-year highs. Higher agricultural commodity prices augur well for crop nutrient demand. Expectations of higher planted corn and soybean acres globally this year on the back of higher crop prices also suggest an uptick in fertilizer demand. The U.S. Department of Agriculture estimates 92.7 million acres of corn planted in the United States for 2021, up 2% from last year. Soybean area planted is projected at 87.6 million acres, up 5% from 2020.
In the United States, healthy farm profits and higher planted acreage are expected to drive demand for fertilizers this year. Farm economics have strengthened in the United States on the back of a spike in crop commodity prices and government support. Solid farm income is likely to incentivize farmers to spend on crop nutrients. Robust grower economics back by strong crop demand are also expected to support demand in other major markets such as Brazil and India.
Meanwhile, phosphate markets are likely to remain robust in the near term on solid demand and pricing dynamics. Tight availability along with firm demand is driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices and low global inventory levels.
Demand for nitrogen fertilizer also remains healthy in major markets. Higher economic activities have contributed to increased industrial consumption of nitrogen products. Global nitrogen requirement is being driven by demand in North America, India and Brazil. Higher corn acres in the United States are expected to spur nitrogen demand in North America this year. Moreover, demand for urea imports into Brazil and India remains favorable. A tight nitrogen supply and demand balance and a spike in energy prices across Europe and Asia are also likely to support nitrogen prices through the balance of 2021.
Solid Zacks Industry Rank
The Zacks Fertilizers industry currently carries a Zacks Industry Rank #9, which places it in the top 4% of more than 250 Zacks industries. The favorable rank reflects the industry’s strength. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Price Performance
The Zacks Fertilizers industry has outperformed the broader market in a year’s time. While the industry has rallied 50.3%, the S&P 500 has returned 32.5%.
Image Source: Zacks Investment Research
4 Stocks Worth a Wager
The fertilizer industry is riding on the strength in the global agriculture markets. Factors like solid farm income and expectations of increased planted acres are expected to drive demand for fertilizers globally. As such, the time is ripe for the investors to add some fertilizer stocks that offer compelling growth prospects.
Below we highlight four stocks, with a Zacks Rank #1 (Strong Buy), that are good options for investment right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Mosaic Company MOS: The Florida-based company is well positioned to leverage increasing global demand for fertilizers and higher realized prices in its businesses. Strong prices for phosphate and potash should drive its results this year. Actions to improve its operating cost structure through transformation plans are also expected to boost profitability.
The company has expected earnings growth of 450.6% for the current year. The Zacks Consensus Estimate for current-year earnings for the company has moved up 45.3% in the past 60 days. It beat the Zacks Consensus Estimate in each of the trailing four quarters at an average of roughly 43%.
Nutrien Ltd. NTR: This Canada-based company is well placed to benefit from solid demand and higher prices for fertilizers, especially potash. It is expected to gain from strong potash sales volumes this year on the back of solid domestic and overseas demand. Nutrien is also poised to gain from acquisitions, cost efficiency and increased adoption of its digital platform. The company also continues to expand its footprint in Brazil through acquisitions, including Tec Agro.
Nutrien has expected earnings growth of 156.1% for the current year. The consensus estimate for earnings for the current year has also been revised 24.6% upward over the last 60 days. The company has a trailing four-quarter earnings surprise of 127.6%, on average.
Intrepid Potash, Inc. IPI: The Colorado-based company is gaining from strong commodity prices and rising potash demand and pricing, which is supporting its margins. A recovery in economic activities and the strength in commodity prices are driving demand for its specialty fertilizer, Trio. Higher prices for potash and Trio are expected to drive its bottom line.
The company has expected earnings growth of 251.3% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 147.3% upward over the last 60 days. The company has a trailing four-quarter earnings surprise of 90.5%, on average.
Sociedad Quimica y Minera de Chile S.A. SQM: The Chile-based company should benefit from being the low-cost producer of potassium chloride, potassium sulfate and potassium nitrate. Moreover, higher demand is expected to boost sales volumes in its specialty plant nutrition business this year. Rising demand is also expected to drive prices of potassium chloride.
The company has expected earnings growth of 46.7% for the current year. The consensus estimate for the current year has been revised 8.3% upward over the last 60 days. The company also has an expected long-term earnings per share growth rate of 32.5%.
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TAMPA, FL / ACCESSWIRE / September 2, 2021 / The Mosaic Company (NYSE:MOS) announced today that North American phosphate operations are expected to be negatively impacted by damage caused by Hurricane Ida.
Wind damage to the Faustina and Uncle Sam facilities from the storm is expected to result in reduced production as repairs are completed over the next 8 to 9 weeks. The following expectations also include estimates of production loss from an August equipment failure at the company's New Wales facility in Florida.
In the third quarter, relative to historical averages, production is expected to be down by approximately 300,000 tonnes. Fourth quarter operating rates are expected to improve sequentially, but production may still be down from historical averages. Mosaic plans to provide an update, including estimated financial impacts of the hurricane, when it reports third quarter results.
The hurricane also caused navigational issues on the Mississippi River, which could cause congestion during the busy fall application season and create logistical risks for Mosaic's production.
As Mosaic completes repairs to operations, the company is also supporting its employees and communities through a $100,000 disaster relief grant to the Capital Area United Way and by providing affected employees with access to funds through the company's employee-to-employee assistance plan.
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single-source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, the potential drop in oil demand/production and its impact on the availability and price of sulfur, political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa'ad Al Shamal Phosphate Company (also known as MWSPC), the timely development and commencement of operations of production facilities in the Kingdom of Saudi Arabia, and the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our long term natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic's decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic's operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic's processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic's potash mines; other accidents and disruptions involving Mosaic's operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
Contacts:
The Mosaic Company
Media:
Ben Pratt, 813-775-4206
benjamin.pratt@mosaicco.com
Investors:
Laura Gagnon, 813-775-4214
Paul Massoud, 813-244-0669
investor@mosaicco.com
SOURCE: The Mosaic Company
View source version on accesswire.com:
https://www.accesswire.com/662487/The-Mosaic-Company-Announces-Hurricane-Ida-Impacts
Owing to the growing awareness regarding the risks of climate change, organizations globally are fervently working toward a reduced-carbon future. In sync with this, Caterpillar Inc. CAT recently announced that it will begin offering 100% hydrogen fueled generator sets from late 2021. The company will also commence roll out of power generation solutions that can be configured to operate on natural gas blended with up to 25% hydrogen. This is part of its ongoing efforts to help customers achieve their climate-related goals by providing products, which facilitate fuel transition, increase operational efficiency and reduce emissions. It is worth mentioning that Caterpillar’s Solar Turbines gas turbine generator sets have been running on high hydrogen blends for decades and are capable of operating on 100% hydrogen today.
The mining industry, particularly, is an energy intensive industry and is considered a significant source of Greenhouse Gas (“GHG”) emissions. Hydrogen is now being considered as a promising alternative energy source to fossil fuels given its abundance, versatility and zero-emissions. The Hydrogen Council estimates that hydrogen could fulfill 18% of global energy demand by 2050.
Owing to government regulations and public demand, leading miners have been striving to transition from diesel to hydrogen fuel cell power for their heavy-duty vehicles as these have the same payload capability and performance of diesel vehicles, while ensuring no emissions. This energy transition has immense potential for Caterpillar and other mining equipment makers in the long haul.
Recently, BHP Group BHP announced a partnership with Caterpillar to develop and deploy zero-emissions mining trucks at its sites to help reduce GHG emissions. Miner, Anglo American, is working toward developing the world’s largest hydrogen-powered mine haul truck.
Meanwhile, the intensifying global focus on shifting from fossil fuels to zero emissions will require a large amount of commodities. This is a win-win situation for both miners and mining equipment makers. Capitalizing on this trend, Caterpillar is helping customers achieve their energy transition through its innovations, which include a battery powered, zero-emissions switcher locomotive and underground loader, and reciprocating engines and gas turbines that burn hydrogen blends, landfill gas and other biogases. It is also developing a variety of alternative power solutions to support a lower-carbon future, including battery-powered construction machines. Caterpillar expects that 100% of its new products through 2030 will be more sustainable than the previous generation via collaborations with customers, reduced waste, improved design for rebuild/remanufacturing, lower emissions and improved efficiency.
Caterpillar’s peer, Komatsu Ltd. KMTUY, will start a hydrogen development program to develop hydrogen power as an alternative to diesel for heavy-duty mining dump trucks this year, with an aim of launching its first vehicles in 2030. Komatsu and several of its customers, Rio Tinto plc RIO, BHP, Codelco and Boliden have formed the Komatsu GHG Alliance to work toward delivering zero-emissions equipment solutions. The company has been working to reduce greenhouse gas emissions for customers through innovative product development for decades in several areas including electric diesel dump trucks, electric power shovels, regenerative energy storage capabilities and fuel saver programs.
Caterpillar and Komatsu fall under the Zacks Manufacturing – Construction and Mining industry. The Zacks Manufacturing – Construction and Mining industry has outperformed the Industrial Products Sector and the S&P 500 composite over the past year. Over this period, the industry has gained 41.4% compared with the sector's and the S&P 500 composite’s rally of 31.9% and 27.7%, respectively.
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The industry is poised to gain on improving commodity prices that will support spending in the mining industry, and solid construction demand. However, the industry is currently grappling with higher input and logistic costs, and labor shortages. Caterpillar and Komatsu has a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lithium supplies could remain constrained through 2025.
Here are four stocks with buy ranks and strong growth characteristics for investors to consider today, September 2nd:
Herc Holdings Inc. HRI: This company that through its subsidiaries, operates as an equipment rental supplier carries a Zacks Rank #1 (Strong Buy) and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.8% over the last 60 days.
Herc Holdings Inc. Price and Consensus
Herc Holdings Inc. price-consensus-chart | Herc Holdings Inc. Quote
Herc Holdings has a PEG ratio of 0.38, compared with 0.86 for the industry. The company possesses a Growth Score of B.
Herc Holdings Inc. PEG Ratio (TTM)
Herc Holdings Inc. peg-ratio-ttm | Herc Holdings Inc. Quote
Macy's, Inc. M: This omnichannel retail organization carries a Zacks Rank #1 and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 73.5% over the last 60 days.
Macy's, Inc. Price and Consensus
Macy's, Inc. price-consensus-chart | Macy's, Inc. Quote
Macy's has a PEG ratio of 0.50, compared with 0.53 for the industry. The company possesses a Growth Score of B.
Macy's, Inc. PEG Ratio (TTM)
Macy's, Inc. peg-ratio-ttm | Macy's, Inc. Quote
Asbury Automotive Group, Inc. ABG: This company that together with its subsidiaries, operates as an automotive retailer carries a Zacks Rank #1 and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 41.5% over the last 60 days.
Asbury Automotive Group, Inc. Price and Consensus
Asbury Automotive Group, Inc. price-consensus-chart | Asbury Automotive Group, Inc. Quote
Asbury Automotive has a PEG ratio of 0.40, compared with 0.58 for the industry. The company possesses a Growth Score of A.
Asbury Automotive Group, Inc. PEG Ratio (TTM)
Asbury Automotive Group, Inc. peg-ratio-ttm | Asbury Automotive Group, Inc. Quote
The Mosaic Company MOS: This company that through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients carries a Zacks Rank #1 and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 45.3% over the last 60 days.
The Mosaic Company Price and Consensus
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
The Mosaic Co. has a PEG ratio of 0.97, compared with 1.20 for the industry. The company possesses a Growth Score of B.
The Mosaic Company PEG Ratio (TTM)
The Mosaic Company peg-ratio-ttm | The Mosaic Company Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
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A month has gone by since the last earnings report for Mosaic (MOS). Shares have added about 2.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Mosaic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Mosaic's Q2 Earnings Beat Estimates, Revenues Lag
Mosaic logged profits of $437.2 million or $1.14 per share in second-quarter 2021, up from $47.4 million or 12 cents in the year-ago quarter. The company gained from higher prices and its transformation efforts in the quarter.
Barring one-time items, adjusted earnings per share were $1.17 that beat the Zacks Consensus Estimate of $1.01.
Net sales rose roughly 37% year over year to $2,800.7 million in the quarter. The figure missed the Zacks Consensus Estimate of $2,927.8 million. Sales were driven by higher prices that more than offset reduced volumes.
Segment Highlights
Net sales in the Phosphates segment rose roughly 54% year over year to $1.2 billion in the quarter, driven by increased prices. Sales volumes in the segment slipped around 11% year over year to 2 million tons. The segment’s gross margin per ton improved to $309 from $18 in the year-ago quarter as better pricing and transformation benefits more than offset reduced volumes and higher raw material costs.
Potash division’s net sales climbed around 19% year over year to $663 million driven by higher prices. Sales volumes in the segment declined around 9% year over year to 2.3 million tons. Gross margin per ton in the quarter was $217, up around 64% year over year.
Net sales in the Mosaic Fertilizantes segment were $1 billion, up around 32% year over year driven by higher year-over-year prices. Sales volume fell around 8% year over year to 2.3 million tons. Gross margin per ton in the quarter was $185, up around 83% year over year.
Financials
At the end of the quarter, Mosaic had cash and cash equivalents of $1,417.6 million, up around 32% year over year. Long-term debt fell roughly 12% year over year to $3,967.9 million.
Net cash provided by operating activities increased roughly 25% year over year to $1,015.1 million in the reported quarter.
Outlook
Moving ahead, the company noted that it expects strong agricultural trends to continue through the second half of 2021, driving demand for fertilizers. Grower economics remain attractive in most global growing regions on strong crop demand, affordable inputs and favorable weather, the company noted.
The company forecasts $90-$100 per ton improvement in average realized price in the Phosphates segment sequentially in the third quarter. For the Potash segment, $25-$35 per ton improvement in average realized prices is expected in the third quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 59.28% due to these changes.
VGM Scores
Currently, Mosaic has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Mosaic has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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The Mosaic Company's MOS stock looks promising at the moment. The company’s shares have popped around 40% so far this year. It is benefiting from higher prices and demand for phosphate and potash.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.
Mosaic currently has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s delve deeper into the factors that make this fertilizer maker an attractive choice for investors right now.
An Outperformer
Shares of Mosaic have rallied 70.4% over a year against the 45.9% rise of its industry. It has also outperformed the S&P 500’s 29.4% rise over the same period.
Image Source: Zacks Investment Research
Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Mosaic for the current year has increased 45.3%. The consensus estimate for third-quarter 2021 has also been revised 80.6% upward over the same time frame.
Positive Earnings Surprise History
Mosaic has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an average earnings surprise of roughly 43%.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Mosaic is currently pegged at $4.68, reflecting an expected year-over-year growth of 450.6%. Moreover, earnings are expected to register a 669.6% growth in the third quarter of 2021.
Growth Drivers in Place
Mosaic is well positioned to leverage increasing global demand for fertilizers and higher realized prices in its businesses. The company expects strong agricultural trends to continue through the second half of 2021, driving demand for fertilizers. Grower economics remain attractive in most global growing regions on strong crop demand, affordable inputs and favorable weather.
The company also forecasts $90-$100 per ton improvement in average realized price in its Phosphates segment sequentially in the third quarter. For the Potash segment, $25-$35 per ton improvement in average realized prices is expected in the third quarter.
Higher crop commodity prices and healthy farm economics are driving demand for fertilizers globally. Global phosphate markets remain robust on solid demand and pricing dynamics. Tight availability along with firm demand is driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand, aided by strong grower economics and higher crop prices.
Mosaic is also taking measures to cut costs amid a still-challenging operating environment. Its actions to improve its operating cost structure through transformation plans are expected to boost profitability. Transformational savings are also expected to drive margins in its Mosaic Fertilizantes segment.
The Mosaic Company Price and Consensus
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, Olympic Steel, Inc. ZEUS and Schnitzer Steel Industries, Inc. SCHN, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of 494% for the current year. The company’s shares have shot up around 152% in the past year.
Olympic Steel has a projected earnings growth rate of 2,362.2% for the current year. The company’s shares have surged around 135% in a year.
Schnitzer Steel has an expected earnings growth rate of 1,253.5% for the current fiscal year. The stock has also rallied around 141% over a year.
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One stock that might be an intriguing choice for investors right now is Intrepid Potash, Inc. IPI. This is because this security in the Fertilizers space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Fertilizers space as it currently has a Zacks Industry Rank of 10 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Intrepid is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.
Intrepid Potash, Inc. Price and Consensus
Intrepid Potash, Inc. price-consensus-chart | Intrepid Potash, Inc. Quote
In fact, over the past month, current quarter estimates have risen from 47 cents per share to 64 cents per share, while current year estimates have risen from $2.15 per share to $2.30 per share. This has helped IPI to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position. You can see the complete list of today’s Zacks #1 Rank stocks here.
So, if you are looking for a decent pick in a strong industry, consider Intrepid. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
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Vancouver, British Columbia–(Newsfile Corp. – August 31, 2021) – Lara Exploration Ltd. (TSXV: LRA) ("Lara"), is pleased to report that it has signed a Mining Rights Transfer Agreement with BHP World Exploration Inc. Sucursal del Peru ("BHP") to acquire the Kenita property in exchange for a commitment to pay a 1% net smelter returns royalty on any future production. The Kenita property comprises five exploration licenses, totalling 2,200 hectares in area, which are adjacent to and surround Lara's 400 hectare Puituco Project, located in the Huancavelica Department of Central Peru.
Lara previously reported high grade surface chip channel samples from Puituco, including 42.6m averaging 4.65% zinc, 4.86% lead and 37 g/t silver (see Lara news release of June 12, 2018 for details). The vertical orientation of the breccia feeder structures to this mineralization and its relationship with the mapped intrusives, indicate potential for the presence of a buried skarn/porphyry system. With the consolidation of the Kenita property Lara intends to extend its surface mapping and sampling and undertake geophysical surveys (Mag and IP) and define targets for a scout drilling program to test this potential.
The Puituco-Kenita property lies to the north of the Riqueza copper porphyry project, being drilled by Inca Minerals Ltd. Minera IRL Ltd.'s Corihuarmi high sulphidation epithermal gold mine and the Bethania polymetallic mine, being redeveloped by Kuya Silver Corp., also lie on the same trend to the northwest of Puituco-Kenita.
About Lara Exploration
Lara is an exploration company following the Prospect and Royalty Generator business model, which aims to minimize shareholder dilution and financial risk by generating prospects and exploring them in joint ventures funded by partners, retaining a minority interest and or a royalty. The Company currently holds a diverse portfolio of prospects, deposits and royalties in Brazil, Peru and Chile. Lara's common shares trade on the TSX Venture Exchange under the symbol "LRA."
Michael Bennell, Lara's Vice President Exploration and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects and has approved the technical disclosure and verified the technical information in this news release.
For further information on Lara Exploration Ltd. please consult our website www.laraexploration.com, or contact Chris MacIntyre, VP Corporate Development, at +1 416 703 0010.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
-30-
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94881
* Andrew Forrest's Wyloo raises bid for Noront
* Wyloo bids C$0.70 a share vs BHP's C$0.55
* BHP to waive standstill clause for Wyloo to conduct due diligence (Adds details from BHP, Noront statements)
Aug 31 (Reuters) – BHP Group said on Tuesday it would consider matching a raised bid by billionaire Andrew Forrest's Wyloo Metals for nickel miner Noront Resources Ltd as the two tussle for the supply of a key battery metal used in electric vehicles (EV).
The statement follows Wyloo indicating it was willing to pay 27% more than what BHP had offered for the Canadian company, proposing that it could keep Noront public or buy out the remaining shares it does not already own.
At stake in the scramble for Noront is the Eagle's Nest nickel asset in Canada's so-called Ring of Fire, a high-grade deposit of the metal, as well as copper and palladium.
Wyloo's proposed sweetened bid of C$0.70 per share, up from C$0.315, compares with an offer of C$0.55 per share from BHP in July.
The Forrest-owned company is Noront's largest shareholder with a stake of around 24%, according to Refinitiv data, and has said it would not support the Anglo-Australian firm's bid.
BHP said in a statement on Tuesday it would "consider its alternatives if a competing offer does materialize, including its right to match any superior proposal."
Noront said it continues to back BHP's offer as Wyloo has yet to make a binding offer.
A bone of contention in Wyloo gaining access to due diligence on Noront has been a standstill clause that BHP said it would waive.
($1 = 1.2606 Canadian dollars) (Reporting by Nikhil Kurian Nainan, additional reporting by Riya Sharma and Savyata Mishra in Bengaluru; Editing by Shounak Dasgupta and Aditya Soni)
Tuesday, August 31, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Adobe Inc. (ADBE), Thermo Fisher Scientific Inc. (TMO), and BHP Group (BHP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Adobe have modestly outperformed the Zacks Software industry in the year to date period (+33.1% vs. +32.5%) as the company continues to benefit from strong demand for its cloud products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products have been supporting its top-line growth.
Rising subscription revenues and solid momentum across the mobile apps remain major positives. Growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. Lower end-market demand and high acquisition expenses remain major overhangs though.
(You can read the full research report on Adobe here >>>)
Thermo Fisher shares have gained +20.8% over the last six months against the Zacks Medical Instruments industry’s gain of +10.1%. The Zacks analyst believes that it has been expanding its inorganic growth profile on the back of several takeovers.
The company witnessed strong end market growth in the second quarter on the back of robust fundamentals in the life sciences, strong economic activity globally and strong pandemic response. Its second-quarter 2021 COVID-19 response revenues, however, declined to $1.9 billion from the prior quarter’s $2.9 billion. Foreign currency fluctuations and competitive landscape are other major threats to the company.
(You can read the full research report on Thermo Fisher here >>>)
Shares of BHP Group have lost -13.2% in the past three months against the Zacks Mining – Miscellaneous industry’s loss of -9.9%, however, BHP Group’s fiscal 2021 revenues and underlying attributable profit improved year over year.
The Zacks analyst believes that strong cash generation, investment in growth projects and higher operational efficacy, as well as solid long-term outlook for metal prices bode well for BHP Group. Exit of petroleum business, investment in growth projects and decision to unify its dual-listed structure will aid growth as well. The spread of the Delta variant is likely to play a spoil sport for the company. Higher input costs and the recent drop in iron ore prices also remain concerns.
(You can read the full research report on BHP Group here >>>)
Other noteworthy reports we are featuring today include Philip Morris International Inc. (PM), Atlassian Corporation Plc (TEAM) and Chubb Limited (CB).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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(Bloomberg) — Andrew Forrest, the billionaire founder of iron ore giant Fortescue Metals Group Ltd., upped his bid to acquire a nickel miner active in Canada’s highly-prospective Ring of Fire region to trump an offer from BHP Group.
Forrest’s Wyloo Metals Pty Ltd. offered to buy Noront Resources Ltd. for C$0.70 per share in cash, beating the C$0.55 per share offer made by BHP in July that Noront’s board agreed to support. Wyloo’s proposal had a higher certainty of success because it already owns about 37.5% of Noront’s shares and does not intend to support BHP’s offer, Wyloo said in a statement.
Global miners are keen to boost their exposure to nickel — a key ingredient in the lithium-ion batteries used in electric vehicles and to store renewable power — and the Ring of Fire region in northern Ontario is seen among Canada’s largest untapped reserves of the metal.
“If shareholders share my view, that it’s impossible to place a value today on a new mining district with the immense potential of these assets, I invite them to hold on to their shares and come along for the ride,” Forrest said in the statement. Under Wyloo’s proposal, Forrest would become chairman of Noront.
BHP said it would wait for a response from the Noront board before determining its next steps.
“It’s important to note that Wyloo has only made a proposal, which is subject to conditions, and has not entered into any binding agreement with Noront in respect of a transaction or a formal offer,” a spokesman for BHP said by email. “The BHP offer is the only offer that has been made to shareholders.”
‘Not an Offer’
Noront continues to support BHP’s offer and called Wyloo’s approach “a non-binding proposal” that is “not an offer,” according to a Tuesday statement by the company.
“Wyloo has not entered into any binding agreement with Noront in respect of a proposed transaction, nor has it made a formal offer to the company’s shareholders,” Noront said in the statement. “There can be no assurance that a transaction will crystallize from the Wyloo proposal.”
Noront’s shares jumped 25% on Monday following news of Wyloo’s offer to end at C$0.76, a premium to Wyloo’s offer which suggests the market sees potential for the bidding war to escalate further.
(Adds Noront comment in seventh, eighth paragraphs.)
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In this article, we discuss the 10 new Reddit WallStreetBets stocks on the rise. If you want to skip our detailed analysis of these stocks, go directly to the 5 New Reddit WallStreetBets Stocks On the Rise.
WallStreetBets, the Reddit forum with more than 10.8 million members, has become one of the hottest places in the world of finance over the past few months. This is evident from the meteoric rise in memberships – the group had only around 1.6 million members in December 2020. On January 28, the group gained a record 1.5 million members in a single night at the height of the short squeeze saga involving video game retailer GameStop. The forum is used by retail investors for market-related discussions.
Some of the most popular stocks on WallStreetBets presently include Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others. Since retail investors do not often see eye to eye with big finance on key investment choices, the group has become a hotbed of activity around meme stocks – firms with little to offer in terms of basic fundamentals but popular because of internet interest.
On August 30, the founder of the WallStreetBets group, Jaime Rogozinski, gave an interview to news platform Kitco News and revealed that he was confident that a new type of exchange-traded product that would let investors with a stake have a say in the asset selection process would soon be launched. Rogozinski even went as far as to call the product “the next meme stock” and said the product would follow a decentralized autonomous organization model. Rogozinski founded WallStreetBets in 2012.
The influx of retail investors on the market has fundamentally altered the dynamics of Wall Street. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Photo by Austin Distel on Unsplash
Our Methodology
With this context in mind, here is our list of the 10 new Reddit WallStreetBets stocks on the rise. They were picked keeping in mind the hype around the companies on Reddit forum WallStreetBets.
In order to separate the best from the rest, only the stocks that have registered gains of 10% or more during the last five days were selected for the final listing. The stocks are ranked according to their percentage gains.
The analyst ratings of each firm are also discussed to provide readers with some more context for their investment decisions. The hedge fund sentiment around the stocks was gauged using data of 873 hedge funds tracked by Insider Monkey.
New Reddit WallStreetBets Stocks On the Rise
10. Lithium Americas Corp. (NYSE: LAC)
Number of Hedge Fund Holders: 9
Percentage Gain in Past Five Days: 10.41%
Lithium Americas Corp. (NYSE: LAC) is placed tenth on our list of 10 new Reddit WallStreetBets stocks on the rise. The firm operates as a resource company and is headquartered in Canada.
On August 30, investment advisory Cowen maintained an Outperform rating on Lithium Americas Corp. (NYSE: LAC) stock and raised the price target to $19 from $17, noting that constructive policy and near-term supply limits were driving lithium pricing higher.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Axel Capital Management is a leading shareholder in Lithium Americas Corp. (NYSE: LAC) with 408,130 shares worth more than $6 million.
Just like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Lithium Americas Corp. (NYSE: LAC) is one of the new Reddit WallStreetBets stocks on the rise.
In its Q1 2021 investor letter, Massif Capital, an asset management firm, highlighted a few stocks and Lithium Americas Corp. (NYSE: LAC) was one of them. Here is what the fund said:
“Lithium Americas: The volatility noted above in LAC has resulted in solid returns via our options trades around our core equity position. At the current time, we are short calls on LAC, as we have done multiple times throughout the position’s life, expiring on May 21, 2021, at a $17.5 and $22.5 strike price. The volume of contracts sold at each strike corresponds to the size of the equity position we want should the calls expire in the money, and the underlying equity gets called away from us. The thought process behind this trade construction is that if we know the size of the position we want at a particular price point, there is no reason not to accumulate additional returns by pre-selling the stock we would have sold anyway.
High levels of volatility positively impact the price of options, increasing the premium we can earn from selling covered calls. To date, we have sold covered calls on LAC that have expired worthless four times, yielding a roughly 7% return on the equity position’s current value or 71bps for the portfolio overall. The outstanding covered calls appear to be trending towards a similar worthless expiration. If they do, the covered call trades on LAC will result in us owning the shares with committed capital of -$0.28 per share.
Although we believe in the fullness of time LAC warrants a $30+ valuation, the prices achieved in early January of this year were not justified by the underlying fundamentals. Some will argue we should have sold down our position. We had already established our option positions and believe LAC is an emerging major in the lithium mining industry. Thus, we decided to maintain the position unchanged. Although still relatively high, the current $15 per share valuation is not crazy compared to where we think the firm should be trading based on fundamentals, so we are no longer overly concerned with the position as is.
LAC management also took advantage of the volatility issuing stock on January 22 for $22 a share. The ~$400 million in proceeds will be used to develop Thacker Pass, the US-based clay lithium deposit, which will likely be the largest producing Lithium mine in America when turned on. In our opinion, the stock issuance could not have come at a better time. LAC management has advanced the project through various development stages (de-risking), but with the share issuance, they have significantly reduced the need to bring in an outside partner to develop the asset as the first phase of the project is expected to cost roughly $581 million. After-tax and at an 8% discount rate, the Thacker Pass project’s present value is approximately $2.6 billion (the firm’s current market capitalization is $1.5 billion). Although the share issuance was dilutive, increasing the total shares by 17%, we believe it will, in the long run, prove a forward-looking, value-additive decision by management.
The lithium market remains an area of interest and focus for us. This reflects our belief that the most exciting investment opportunities to capture secular trends in EV’s and batteries are found upstream in the mining industry. It is also a reflection that there is a greater diversity of lithium investment opportunities relative to other battery metals.”
9. Penn National Gaming, Inc. (NASDAQ: PENN)
Number of Hedge Fund Holders: 40
Percentage Gain in Past Five Days: 11.43%
Penn National Gaming, Inc. (NASDAQ: PENN) is ranked ninth on our list of 10 new Reddit WallStreetBets stocks on the rise. The firm owns and manages gaming and racing properties. It is headquartered in Pennsylvania.
On August 5, investment advisory Stifel reiterated a Buy rating on Penn National Gaming, Inc. (NASDAQ: PENN) stock with a price target of $108. Steven Wieczynski, an analyst at the firm, issued the ratings update.
At the end of the second quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth 1 billion in Penn National Gaming, Inc. (NASDAQ: PENN), down from 42 in the previous quarter worth $907 million.
Along with Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Penn National Gaming, Inc. (NASDAQ: PENN) is one of the new Reddit WallStreetBets stocks on the rise.
In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Penn National Gaming, Inc. (NASDAQ: PENN) was one of them. Here is what the fund said:
“Shares of regional casino operation Penn National Gaming, Inc. increased in the quarter on strong share gains in the online sports betting and gaming markets in Michigan and the opening of the large Illinois online sports betting market. Strong sequential growth in revenue and sustained margin improvement in its brick and mortar operations also helped boost the share price. We think these positive developments will lead to improvements in the company’s balance sheet and its EBITDA to free cash flow conversion.”
8. The Beauty Health Company (NASDAQ: SKIN)
Number of Hedge Fund Holders: 33
Percentage Gain in Past Five Days: 12.85%
The Beauty Health Company (NASDAQ: SKIN) is a California-based firm that markets aesthetic technologies and products. It is placed eighth on our list of 10 new Reddit WallStreetBets stocks on the rise.
On August 11, investment advisory Benchmark maintained a Buy rating on The Beauty Health Company (NASDAQ: SKIN) stock and raised the price target to $25 from $18, identifying contracts with retailers and international market expansion as growth catalysts for the firm.
At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $665 million in The Beauty Health Company (NASDAQ: SKIN).
In addition to Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), The Beauty Health Company (NASDAQ: SKIN) is one of the new Reddit WallStreetBets stocks on the rise.
7. Peabody Energy Corporation (NYSE: BTU)
Number of Hedge Fund Holders: 18
Percentage Gain in Past Five Days: 16.32%
Peabody Energy Corporation (NYSE: BTU) is a Missouri-based coal mining firm. It is ranked seventh on our list of 10 new Reddit WallStreetBets stocks on the rise.
On August 2, investment advisory B Riley maintained a Neutral rating on Peabody Energy Corporation (NYSE: BTU) stock and raised the price target to $11 from $7, appreciating the second quarter earnings report of the company.
At the end of the second quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $297 million in Peabody Energy Corporation (NYSE: BTU), down from 21 in the preceding quarter worth $122 million.
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG) are some of the new Reddit WallStreetBets stocks on the rise, along with Peabody Energy Corporation (NYSE: BTU).
6. Hut 8 Mining Corp. (NASDAQ: HUT)
Number of Hedge Fund Holders: 4
Percentage Gain in Past Five Days: 22.08%
Hut 8 Mining Corp. (NASDAQ: HUT) is placed sixth on our list of 10 new Reddit WallStreetBets stocks on the rise. The firm operates from Canada and engages in cryptocurrency mining operations.
On August 3, investment advisory Craig-Hallum initiated coverage of Hut 8 Mining Corp. (NASDAQ: HUT) stock with a Buy rating and a price target of $10, underlining that the firm had the right combination of hash, power, agility and diversity.
At the end of the second quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $2 million in Hut 8 Mining Corp. (NASDAQ: HUT).
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG) are some of the new Reddit WallStreetBets stocks on the rise, just like Hut 8 Mining Corp. (NASDAQ: HUT).
Click to continue reading and see 5 New Reddit WallStreetBets Stocks On the Rise.
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Disclosure. None. 10 New Reddit WallStreetBets Stocks On the Rise is originally published on Insider Monkey.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on — that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Mosaic (MOS)
Minnesota-based The Mosaic Company is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. It was formed through the combination of the fertilizer businesses of agribusiness giant Cargill Incorporated and IMC Global Inc. Mosaic is the biggest integrated phosphate producer globally and is also among the four largest potash producers in the world.
MOS is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Basic Materials stock. MOS has a Momentum Style Score of B, and shares are up 8% over the past four weeks.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2021, while the Zacks Consensus Estimate has increased $1.46 to $4.68 per share. MOS also boasts an average earnings surprise of 43%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MOS should be on investors' short list.
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The infrastructure bill is making its way through Congress and that sets up possibilities for moves in stocks and ETFs.
MELBOURNE (Reuters) – Global miner BHP Group is mulling whether to make vaccinations for COVID-19 mandatory at its workplaces in Australia as the country's east battles ballooning virus cases.
The world's biggest miner on Monday set out measures it was taking to support vaccination in communities where it operates including on-site jabs at its Mt Arthur Coal Mine in New South Wales state that are to begin this week.
The state has become the epicentre of Australia's current coronavirus outbreak, having declared a record 1,290 new cases on Monday as the nation struggles to contain the highly contagious Delta variant.
Although Australia has used a system of strict lockdowns and quarantine to keep coronavirus infection and death rates lower than in most comparable nations, the Delta variant is now pressuring health services. Residents of its two biggest cities have been on strict lockdown for more than a month.
BHP said in a statement that it was actively assessing vaccination as a condition of entry to its workplaces.
"As vaccinations become more accessible to all Australians, we have been encouraging our people to better protect themselves and their families and communities, and we will look for further opportunities to increase access and uptake of vaccinations," Edgar Basto, who runs BHP's Minerals Australia business, said.
BHP expects to complete its assessment in September, with a policy likely to come into effect in early 2022, once people have had a reasonable opportunity to be fully vaccinated.
The miner is funding a new vaccine hub in central Queensland near its coal joint venture with Mitsubishi Corp, and is working with South Australian health authorities to establish a mobile clinic near its Olympic Dam copper mine.
It is also working with health officials in Western Australia to support vaccine rollouts in the Pilbara region, the heart of its iron ore operations, it said.
(Reporting by Melanie Burton in Melbourne; Editing by Matthew Lewis)
(Bloomberg) — Fortescue Metals Group Ltd. is planning to unveil targets for reducing the carbon footprint of its biggest customers, marking a shift in approach for the world’s no. 4 exporter of iron ore.
The firm will follow rivals including Rio Tinto Group and BHP Group in setting specific goals to cut so-called scope 3 emissions, which in Fortescue’s case are generated by steel-makers using the company’s iron ore. Founder and chairman Andrew Forrest was previously not in favor of setting such benchmarks.
“Fortescue resisted setting Scope 3 targets until it had a concrete plan that could really help its customers decarbonize,” Forrest said on the media call following the company’s annual results. More details, including the targets, will be unveiled by September 30.
Global resources companies are under increasing pressure to be more accountable for emissions beyond their own operations, with powerful investors including Norway’s $1.3 trillion sovereign wealth fund threatening to drop firms that don’t meet their environmental standards.
Efforts to reduce scope 3 emissions should focus on developing technology to make climate-friendly steel cheaper, Forrest said. He has previously predicted that the coal-fired blast furnace still dominating the steel industry will be obsolete by 2050, and is investing in projects to supply hydrogen that could help to decarbonize the sector.
Gas Powered
The company will set aside 10% of annual profit to invest in hydrogen, ammonia and other green industrial projects backed by renewable power, marshaled by its Fortescue Future Industries division. Forrest’s plan is to supply over 15 million tons of hydrogen, produced from renewable power, by 2030.
Rio Tinto said in February it would collaborate with customers to reduce the carbon intensity of steel-making by at least 30% by 2030, and aim for carbon-neutral steel-making by 2050. BHP Group also has targets for reducing scope 3 emissions.
Fortescue has been working with buyers “for some time” on reducing their emissions, Chief Executive Officer Elizabeth Gaines said on the same call. The Perth-based company is targeting net-zero greenhouse gases from its own operations by 2030, well ahead of a 2050 goal set by Rio and BHP.
Fortescue’s scope 3 emissions — the bulk of which come from the steel manufacturing process — were 252 million tons of CO2-equivalent in its 2021 fiscal year, according to its latest climate change report. That compares to gross operational emissions — scopes 1 and 2 — of 2.2 million tons.
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While prices for industrial metals like copper and iron ore have been weaker, Chris LaFemina, a mining analyst at Jefferies, is upbeat on the sector. Among diversified miners, BHP (ticker: BHP), at $66, is down 20% from its peak; Rio Tinto (RIO) is off 19%, to $75; Anglo American (NGLOY) is off 13%, to $21; and Freeport-McMoRan (FCX), a global copper producer, is down 21% from its peak to $36. Copper prices, down about 10% from their spring peak, to $4.33 a pound, have held up better than iron ore, which is off 40% from its high, to $145 a ton.
In this article, we discuss the 15 best mid-cap stocks for 2021. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Mid-Cap Stocks for 2021.
Mid-cap stocks are considered in the middle of small-cap and large-cap stocks. While mid-cap (i.e. mid-capitalization) is generally used to designate companies with a market capitalization between $2 billion and $10 billion, these numbers are subject to change as all stock valuations change over time
One index that tracks mid-cap stocks based in the U.S. is S&P MidCap 400. This index consists of 400 stocks. As of July 30, 2021, the median total market capitalization in the index is at $5.627 billion with the smallest at $1.375 billion and the largest at $18.755 billion.
In the traditional risk vs. reward analysis, small-cap stocks are considered to have the best growth potential than mid-cap and large-cap stocks. However, this growth comes with greater risk. Generally, mid-cap stocks are considered to have a proven track record of profitability while having less volatility during tougher market conditions compared to small-cap stocks. On the other hand, large-cap stocks are seen as less risky albeit with less growth potential compared to mid-cap stocks. Because of this reason, mid-cap stocks can be used in portfolio diversification.
We can see the idea of diversification when comparing S&P MidCap 400 with S&P 500, the S&P index for large-cap companies. Not surprisingly, technology stocks represent 27.2% of all stocks in the S&P 500. In contrast, no sector has 20% or more representation in S&P MidCap 400. Also, industrials and materials sectors account for a combined 26.6% of all midcap stocks while they only account for 11% of large-cap stocks. So, significant differences exist between large-cap and mid-cap stocks when it comes to sectoral breakdown.
Some big-name midcap stocks include Dolby Laboratories, Inc. (NYSE: DLB) known for its audio and video technologies such as Dolby Vision, Five Below, Inc. (NASDAQ: FIVE), the well-known discount store chain, and The Mosaic Company (NYSE: MOS) known for its production of potash and phosphate fertilizers.
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The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th, 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
Regarding the methodology used in this article, the minimum and maximum valuations in S&P MidCap 400 were used to identify mid-cap stocks. Moreover, the ranking of a given stock in this list is based on the number of hedge fund holdings in that stock as of the end of the second quarter of 2021, based on our data of 873 hedge funds.
15 Best MidCap Stocks For 2021
15. Upwork Inc. (NASDAQ: UPWK)
Number of Hedge Fund Holders: 26
Upwork Inc. (NASDAQ: UPWK) is a California-based online freelancer marketplace for freelancers and businesses to conduct business. It is the world's largest freelancer marketplace. It is ranked fifteenth on our list of 15 best mid-cap stocks for 2021. The stock has returned over 170.68% to investors over the course of the past year.
On July 29, Upwork Inc. (NASDAQ: UPWK) posted earnings for the second quarter of 2021, reporting earnings per share of -$0.13, missing estimates by $0.04. The revenue over the period was around $124 million, up 41.87% year-over-year.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $428 million in Upwork Inc. (NASDAQ: UPWK).
Out of the hedge funds tracked by Insider Monkey, SRS Investment Management has the most valuable stake in Upwork Inc. (NASDAQ: UPWK) as of the end of second quarter of 2021, worth close to $117 million, comprising 1.74% of its 13F portfolio.
On July 30, MKM Partners boosted its price target on Upwork Inc. (NASDAQ: UPWK) to $65 from $58 and maintained its Buy rating, noting that the company has had and continues to have partnerships with large firms and clients.
Just like The Mosaic Company (NYSE: MOS), Five Below, Inc. (NASDAQ: FIVE), and Ambarella, Inc. (NASDAQ: AMBA), Upwork Inc. (NASDAQ: UPWK) is one of the best mid-cap stocks for 2021.
14. Semtech Corporation (NASDAQ: SMTC)
Number of Hedge Fund Holders: 28
Semtech Corporation (NASDAQ: SMTC) is a California-based semiconductor company, supplying analog and mixed-signal semiconductors and advanced algorithms. Its products include LoRa, a long-range networking tech used in the field of the Internet of Things (IoT). It is ranked fourteenth on our list of 15 best mid-cap stocks for 2021. The stock has returned over 3.31% to investors over the course of the past year.
On June 2, Semtech Corporation (NASDAQ: SMTC) posted earnings for the first quarter of 2021, reporting earnings per share of $0.36, beating estimates by $0.05. The revenue over the period was around $170 million, up 28.39% year-over-year.
At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $376 million in Semtech Corporation (NASDAQ: SMTC), up from 21 the preceding quarter worth $210 million.
Out of the hedge funds tracked by Insider Monkey, billionaire Ken Fisher's Fisher Asset Management has the most valuable position in Semtech Corporation (NASDAQ: SMTC) as of the end of the second quarter of 2021, worth close to $90 million, comprising 0.05% of its 13F portfolio.
During the second quarter of 2021, Fisher Asset Management increased its stake in Semtech Corporation (NASDAQ: SMTC) by 12%. Israel Englander's Millennium Management increased its stake by 232%. Millennium Management's stake is worth $84 million as of the end of the second quarter of 2021.
13. LendingTree, Inc. (NASDAQ: TREE)
Number of Hedge Fund Holders: 30
LendingTree, Inc. (NASDAQ: TREE) is a financial services company offering third-party services for borrowers to shop and compare different credit terms. It is ranked thirteenth on our list of 15 best mid-cap stocks for 2021. The stock has returned about -46.55% to investors over the course of the past year.
On July 29, LendingTree, Inc. (NASDAQ: TREE) posted earnings for the second quarter of 2021, reporting earnings per share of $0.48, beating estimates by $1.14. The revenue over the period was around $270.01 million, up 46.49% year-over-year.
At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $347 million in LendingTree, Inc. (NASDAQ: TREE), up from 25 the preceding quarter worth $568 million.
Out of the hedge funds tracked by Insider Monkey, billionaire Ken Griffin's Citadel Investment Group increased its stake in LendingTree, Inc. (NASDAQ: TREE) by 45% during the second quarter of 2021. This stake was worth $73 million as of the end of the second quarter of 2021.
Just like The Mosaic Company (NYSE: MOS), Five Below, Inc. (NASDAQ: FIVE), and SolarEdge Technologies, Inc. (NASDAQ: SEDG), LendingTree, Inc. (NASDAQ: TREE) is one of the best mid-cap stocks for 2021.
In its Q1 2021 investor letter, Headwaters Capital, an investment management firm, mentioned LendingTree, Inc. (NASDAQ: TREE). Here is what the firm had to say:
“LendingTree is an online marketplace for consumer financial products such as mortgages, credit cards, personal loans and insurance. TREE’s marketplaces connect consumers looking for financial products with lenders and insurance companies, effectively serving as an outsourced marketing partner for lenders and insurance providers. TREE’s results were negatively impacted by ongoing stimulus payments that have served to improve the health of consumer balance sheets and reduce the demand for lending products, specifically credit cards and personal loans. As a result of lower consumer demand for loans, lenders have reined in their marketing budgets, which has translated into lower revenue for TREE. While it is difficult to predict when consumer demand and, consequently, lender marketing budgets will rebound, I do expect both to rebound to pre-COVID levels. Additionally, TREE’s CEO is heavily incentivized to improve performance at the business: he has foregone a salary and has instead accepted a performance-based options grant that can only be exercised once the stock price reaches a minimum hurdle price of $432 (+108% from the current share price). The CEO also has a 16% ownership stake in the Company.”
12. Coty Inc. (NYSE: COTY)
Number of Hedge Fund Holders: 30
Coty Inc. (NYSE: COTY) is an American beauty company, developing and manufacturing skincare, haircare, cosmetics products as well as fragrances. It is ranked twelfth on our list of 15 best mid-cap stocks for 2021. The stock has returned over 106.84% to investors over the course of the past year.
On May 10, Coty Inc. (NYSE: COTY) posted earnings for the first quarter of 2021, reporting earnings per share of -$0.02, missing estimates by $0.03. The revenue over the period was around $1.03 billion, down 32.74% year-over-year.
At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $382 million in Coty Inc. (NYSE: COTY), up from 25 the preceding quarter worth $263 million.
Out of the hedge funds tracked by Insider Monkey, Melvin Capital has the most valuable stake in Coty Inc. (NYSE: COTY) as of the end of the second quarter of 2021, worth close to $93 million, comprising 0.53% of its 13F portfolio.
11. Everest Re Group, Ltd. (NYSE: RE)
Number of Hedge Fund Holders: 30
Everest Re Group, Ltd. (NYSE: RE) is a holding company providing reinsurance and insurance to various clients across the world. It is ranked eleventh on our list of 15 best mid-cap stocks for 2021. The stock has returned over 25.69% to investors over the course of the past year.
On July 28, Everest Re Group, Ltd. (NYSE: RE) posted earnings for the second quarter of 2021, reporting earnings per share of $14.63, beating estimates by $5.99. The revenue over the period was around $2.56 billion, up 26.81% year-over-year.
At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $686 million in Everest Re Group, Ltd. (NYSE: RE).
Out of the hedge funds tracked by Insider Monkey, AQR Capital Management has the most valuable stake in Everest Re Group, Ltd. (NYSE: RE) as of the end of the second quarter of 2021, worth close to $181 million, comprising 0.31% of its 13F portfolio. During the second quarter of 2021, billionaire Jim Simons's Renaissance Technologies increased its stake in Everest Re Group, Ltd. (NYSE: RE) by 93%. This follows a 345% increase in stake during the first quarter of 2021.
On August 16, Wolfe Research gave an Outperform rating to Everest Re Group, Ltd. (NYSE: RE) with a price target of $330, citing a favorable risk/reward dynamic.
In its Q1 2021 investor letter, Miller/Howard Investments, an investment management firm, mentioned Everest Re Group, Ltd. (NYSE: RE). Here is what the firm had to say:
"We bought two new financials this quarter (including), Everest Re (RE). Both were selling at a discount to book value and should benefit from the improving economy, in our opinion."
10. Dolby Laboratories, Inc. (NYSE: DLB)
Number of Hedge Fund Holders: 31
Dolby Laboratories, Inc. (NYSE: DLB) is an American company developing technologies and products for mainly the entertainment and consumer electronics industries. These products include audio noise reduction and high dynamic range (HDR) video technologies. It is ranked tenth on our list of 15 best mid-cap stocks for 2021. The stock has returned over 43.01% to investors over the course of the past year.
On July 29, Dolby Laboratories, Inc. (NYSE: DLB) posted earnings for the second quarter of 2021, reporting earnings per share of $0.71, beating estimates by $0.23. The revenue over the period was around $287 million, up 16.16% year-over-year.
At the end of the second quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $748 million in Dolby Laboratories, Inc. (NYSE: DLB).
Out of the hedge funds tracked by Insider Monkey, SoMa Equity Partners has the most valuable stake in Dolby Laboratories, Inc. (NYSE: DLB) as of the end of the second quarter of 2021, worth close to $226 million, comprising 4.76% of its 13F portfolio.
On August 2, Barrington boosted its rating on Dolby Laboratories, Inc. (NYSE: DLB) to Outperform from Market Perform and gave a price target of $115, noting that the company will benefit from the consumer demand for better audio and visual experience.
Just like The Mosaic Company (NYSE: MOS), Ambarella, Inc. (NASDAQ: AMBA), and Five Below, Inc. (NASDAQ: FIVE), Dolby Laboratories, Inc. (NYSE: DLB) is one of the best mid-cap stocks for 2021.
9. AECOM (NYSE: ACM)
Number of Hedge Fund Holders: 32
AECOM (NYSE: ACM) is an American engineering and infrastructure consulting firm. It is ranked ninth on our list of 15 best mid-cap stocks for 2021. The stock has returned over 62.07% to investors over the course of the past year.
On August 9, AECOM (NYSE: ACM) posted earnings for the second quarter of 2021, reporting earnings per share of $0.73, breaking even with the estimates. The revenue over the period was around $3.41 billion, up 6.86% year-over-year.
At the end of the second quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $791 million in AECOM (NYSE: ACM).
Out of the hedge funds tracked by Insider Monkey, Starboard Value LP has the most valuable stake in AECOM (NYSE: ACM) as of the end of the second quarter of 2021, worth close to $470 million, comprising 9.24% of its 13F portfolio.
During the second quarter of 2021, billionaire Ken Griffin's Citadel Investment Group increased its stake in AECOM (NYSE: ACM) by 3%, bringing the value of its stake to around $86 million, as of the end of the second quarter. This increase follows an 8% increase in stake during the first quarter.
As the $3.5 trillion infrastructure bill makes it way through the Congress, AECOM (NYSE: ACM) has a unique position as a big infrastructure management company. With around $1.05 billion in cash and cash-equivalents and successful operations in the United States and the EMEA region, AECOM (NYSE: ACM) is highly likely to benefit from the infrastructure bill.
8. Syneos Health, Inc. (NASDAQ: SYNH)
Number of Hedge Fund Holders: 33
Syneos Health, Inc. (NASDAQ: SYNH) is a North Carolina-based healthcare company offering contract research services to biotechnology companies in the form of patient and investigator recruitment as well as clinical development services in Phases I through IV among other services. It is ranked eighth on our list of 15 best mid-cap stocks for 2021. The stock has returned over 50.76% to investors over the course of the past year.
On August 9, Syneos Health, Inc. (NASDAQ: SYNH) posted earnings for the second quarter of 2021, reporting earnings per share of $0.97, beating estimates by $0.02. The revenue over the period was around $1.28 billion, up 26.57% year-over-year.
At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $670 million in Syneos Health, Inc. (NASDAQ: SYNH), up from 28 the preceding quarter worth $460 million.
On August 4, Credit Suisse gave an Outperform rating to Syneos Health, Inc. (NASDAQ: SYNH) with a price target of $96, preserving its rating and price target.
7. Plug Power Inc. (NASDAQ: PLUG)
Number of Hedge Fund Holders: 34
Plug Power Inc. (NASDAQ: PLUG) is an American alternative energy technology company, developing hydrogen fuel cells to replace conventional batteries. It is ranked seventh on our list of 15 best mid-cap stocks for 2021. The stock has returned over 77.25% to investors over the course of the past year.
On August 5, Plug Power Inc. (NASDAQ: PLUG) posted earnings for the second quarter of 2021, reporting earnings per share of -$0.18, missing estimates by $0.11. The revenue over the period was around $125 million, up 82.98% year-over-year.
At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $878 million in Plug Power Inc. (NASDAQ: PLUG), up from 25 the preceding quarter worth $613 million.
Out of the hedge funds tracked by Insider Monkey, D.E. Shaw has the most valuable stake in Plug Power Inc. (NASDAQ: PLUG) as of the end of the second quarter of 2021, worth close to $507 million, comprising 0.43% of its 13F portfolio. D. E. Shaw increased its stake by 23% during the second quarter of 2021.
Plug Power Inc. (NASDAQ: PLUG) is one of the best mid-cap stocks for 2021, along with The Mosaic Company (NYSE: MOS), Ambarella, Inc. (NASDAQ: AMBA), and Five Below, Inc. (NASDAQ: FIVE).
6. Skechers U.S.A., Inc. (NYSE: SKX)
Number of Hedge Fund Holders: 35
Skechers U.S.A., Inc. (NYSE: SKX) is the third-largest footwear company in the United States. It is ranked sixth on our list of 15 best mid-cap stocks for 2021. The stock has returned over 71.86% to investors over the course of the past year.
On July 22, Skechers U.S.A., Inc. (NYSE: SKX) posted earnings for the second quarter of 2021, reporting earnings per share of $0.88, beating estimates by $0.38. The revenue over the period was around $1.66 billion, up 127.26% year-over-year.
At the end of the second quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $773 million in Skechers U.S.A., Inc. (NYSE: SKX), up from 29 the preceding quarter worth $532 million.
Out of the hedge funds tracked by Insider Monkey, Pzena Investment Management has the most valuable stake in Skechers U.S.A., Inc. (NYSE: SKX) as of the end of the second quarter of 2021, worth close to $254 million, comprising 0.98% of its 13F portfolio.
On July 23, B. Riley boosted its price target on Skechers U.S.A., Inc. (NYSE: SKX) to $61 from $51 and kept its Buy rating, noting that the company had a strong Q2 performance and can benefit from the reopening of the world economy.
Click to continue reading and see the 5 Best Mid-Cap Stocks for 2021.
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Disclosure: None. 15 Best Mid-Cap Stocks for 2021 is originally published on Insider Monkey.
Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals?
Enter the Zacks Rank.
What is the Zacks Rank?
The Zacks Rank is a unique, proprietary stock-rating model that utilizes earnings estimate revisions to help investors build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
These four factors are assigned a raw score that's recalculated every night, which is then compiled into the ranking system. Stocks are classified into five groups using this data, ranging from "Strong Buy" to "Strong Sell."
The Power of Institutional Investors
The Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
Institutional investors are responsible for managing the trillions of dollars invested in mutual funds, hedge funds, and investment banks. Research has shown that these investors can and do move the market due to the large amount of money they deal with, and thus, the market tends to move in the same direction as them.
These investors are known for designing valuation models that focus on earnings and earnings expectations in order to figure out the fair value of a company and its shares. If earnings estimates are raised, it puts a higher value on a company.
With these changes, institutional investors will act, usually buying stocks with rising estimates and selling those with falling estimates. An increase in earnings expectations can potentially lead to higher stock prices and bigger gains for the investor.
Retail investors who get in at the first sign of upward revisions have a distinct advantage over larger investors since it can often take weeks, if not months, for an institutional investor to build a position. They'll also benefit from the expected institutional buying that could follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks Rank
The Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at Mosaic (MOS), which was added to the Zacks Rank #1 list on August 7, 2021.
Minnesota-based The Mosaic Company is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. It was formed through the combination of the fertilizer businesses of agribusiness giant Cargill Incorporated and IMC Global Inc. Mosaic is the biggest integrated phosphate producer globally and is also among the four largest potash producers in the world.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2021, while the Zacks Consensus Estimate has increased $1.56 to $4.68 per share. MOS also boasts an average earnings surprise of 43%.
Analysts are expecting earnings to grow 450.6% for the current fiscal year, with revenue forecasted to rise 44.6%.
Even more impressive, MOS has gained in value over the past four weeks, up 2% compared to the S&P 500's gain of 1.2%.
Bottom Line
With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Mosaic should be on investors' shortlist.
If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.
Discover Today's Top Stocks
Our private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>
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The Mosaic Company (MOS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
PERTH, Australia, Aug. 26, 2021 /CNW Telbec/ – Galaxy Resources Limited (ASX: GXY) (Company) advises that the following announcement has been made to the Australian Securities Exchange which appears on the Company's platform (ASX):
-
Merger of Galaxy and Orocobre Implemented
The announcement can be viewed at:
https://www2.asx.com.au/markets/trade-our-cash-market/announcements.gxy
SOURCE Galaxy Resources Limited
View original content: http://www.newswire.ca/en/releases/archive/August2021/26/c8739.html
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