Equities finished last week on a positive note, and Treasury yield rates rose after the release of the Labor Department’s employment report for June revealed unexpected strength in the labor market. Nonfarm payrolls increased 372,000 last month, surpassing expectations of 250,000 additional jobs. Recession concerns intensified as evidence of accelerated jobs growth could fuel the Federal Reserve’s aggressiveness during the July 26-27 policy meeting.
For the week, the Dow rose 0.8%, the S&P 500 gained 1.9%, and the Nasdaq added 4.6%. The yield on the 10-year U.S. Treasury note dropped below that of the 2-year note, leading to an inversion of the yield curve that lasted into Friday’s close, with the 10-year Treasury note yielding 3.09% while the 2-year note yielded 3.11%.
Earnings season kicks off this week, with big banks set to report second-quarter results. JPMorgan Chase, Morgan Stanley, and First Republic Bank will report on Thursday, followed by Wells Fargo, BlackRock, Citigroup, U.S. Bancorp, BNY Mellon, and PNC Bank on Friday. Relative to recent quarters, Q2 expectations are low. Analysts recently surveyed by FactSet were expecting companies in the S&P 500 to post earnings increases averaging 4.3% compared with the same period a year earlier. In the first quarter, the year-over-year growth rate was 9.0%.
Wall Street will also be focused on inflation data this week with the release of the latest update to the Consumer Price Index (CPI) on Wednesday, followed by the Producer Price Index (PPI) reading on Thursday. Our team has three recommendations for the week ahead, including one company with a reputation for stability and rewarding investors, as well as a more speculative name that’s beginning to gain attention as investors start to search for diamonds in the beaten-down tech sector.
US Dollar Replaced By “Biden Bucks”?
A former advisor to the CIA and Pentagon now believes President Biden plans to retire the US dollar we know.
And replace it with what he calls “Biden Bucks”. It is underway.
On March 9, Biden signed Executive Order 14067, which could pave the way for Biden Bucks.
[Click to see how to save your investment and retirement accounts >>>]
As investors look for ways to improve their risk-return profiles, many seek stability and companies with a reputation for rewarding investors with regular payouts. Real Estate Investment Trusts (REITs), one of last year’s top-performing sectors, are popular among investors due to the booming real estate market, dividend advantages, and portfolio diversification. Commercial real estate is the third-largest asset class in the U.S., and REITs may provide a diverse mix of real estate assets and long-term total returns comparable to other stocks.
When rates rise, investors often forsake high-dividend-paying equities in favor of bonds, which offer a similar return but pose less risk and volatility. According to recent statistics, REITs have one of the lowest average risks, illustrating the performance of various asset classes following rate rises across three periods. REITs did well throughout both high and low inflation eras. This implies they’re less vulnerable to prediction risk or the chance that investors accurately forecast periods of high inflation.
Life Storage, Inc. (LSI) is a self-storage REIT that invests in, owns, and manages self-storage facilities. It provides services for business, automobile, and wine storage. With over 1,000 sites in the United States and Canada, LSI owes to e-commerce driving warehouse demand and the requirement for product storage and the tech industry’s servers. Occupancy and rental rates have remained high due to supply chain concerns, giving LSI an advantage over other REITs.
LSI has the kind of robust financials we all look for in a stock. They have an impressive earnings report history, most recently beating quarterly EPS projections by 6.83% and revenue expectations by 4.78%. LSI shows very healthy year-over-year numbers, with notable revenue growth of 33.03% and EPS growth of 56.14%. Until reporting again, the company offers $230 million in sales at 90 cents per share. LSI currently has a dividend yield of 3.48%, with a nice annual cash payout of $4.00 per share.
LSI has a consensus price target of 132.00, implying an increase of 16% over current pricing and a sturdy Buy rating.
Investor Place Media:
Buy This $0.21 CENT Crypto for a Rebound (Before Nov 1)
Analysts like Michael Saylor, Raoul Paul and Cathie Wood are predicting that the crypto market could 10x from current levels.
Legendary crypto expert Charlie Shrem is touting that Nov 1 is a date everyone should mark on their calendars and pay close attention to.”
A hidden market event could begin pushing specific cryptoprojects to new all-time highs.
Charlie is so confident, in fact, he’s urging folks to grab shares of a little-known crypto that currently trades for just $0.21 right now.
He believes it could easily become a TOP FIVE Coin… and ultimately become the big winner of 2022.
Click here for the full story. [Full Story…]
Multi-national healthcare and managed care provider Centene Corporation (CNC) has been a beneficiary of the latest uptick in healthcare and seems ready to build on that strength amid a market being rocked by fears of recession.
Over the past four quarters, earnings increased an average of 21%, and revenue increased an average of 15%. Centene beat first-quarter predictions, with revenue rising 24% year over year. Analysts predict that CNC earnings per share will increase by 8% in 2022. Profits are seen ramping up, with 9% growth seen this year and growth of 13% expected in 2023.
Centene recently increased its 2022 full-year guidance, citing increased Medicaid premium revenue and “favorable” performance so far in the second quarter. For 2022, the company increased its Premium and Service Revenues guidance range by $2.0 billion to a new range of $134.3 billion to $136.3 billion and has increased its Adjusted Diluted EPS guidance range by $0.15 to a new range of $5.55 to $5.70.
Funds and other institutional investors are key backers of the stock, with 67% of shares currently held by big money. As of March, 2,269 funds owned CNC shares, an increase of 124 since December, according to MarketSmith.
As the leader in managed care, Centene provides high-quality, affordable products to nearly 1 in 15 Individuals across the nation, mainly through government-sponsored healthcare programs. The $100-billion plus enterprise ranked No. 24 on the 2021 Fortune 500. The pros covering CNC give it a solid Buy rating and a median price target of 96%, representing a 12% increase from Friday’s closing price.
“The next Apple” at less than $10?
One stock is causing quite a stir on Wall Street.
It has so much potential, Forbes asks whether it could be the next Apple or Microsoft.
1.The company uses the most advanced technology on the planet.
2.Its stock is trading for less than $10 (for now…), and
3.Some of the world’s biggest investors, including Bill Gates and Cathie Wood, are investing millions into it.
An international conference recently took place in Amsterdam that focused on thebreakthrough tech behind this stock, which could explode any day now.
Get the full details on this incredible stock right here [Full Story…]
Israel-based Nice Ltd. (NICE) is a provider of enterprise software with more than 27,000 customers (including 85% of the Fortune 100) from 150 countries. Its operating segments consist of Customer Interactions Solutions and Financial Crime & Compliance Solutions. Over the past year, the company generated $2.0 billion in revenue, and approximately $1.1 billion was cloud-based revenue. Over the past three years, the company’s revenue grew 22.3%, from $1.57 billion in 2019 to $1.92 billion in 2021. In terms of profits, its operating profit rose 10.6% to $263.9 million from $238.7 million a year earlier.
Building on the stellar growth, the company reiterated its ambitious targets when it unveiled its NICE3D strategic plan during its recent investor’s day event. The company outlined its updated financial goals through fiscal 2026, headlined by 30%+ operating margins and double-digit revenue growth. Nice currently trades at 6.74x sales, considerably less than its main competitor Five9 at 10.03x.
The current consensus among 12 polled analysts is to Buy NICE. A median price target of $265 represents an increase of 29% from Friday’s closing price.
Should you invest in Centene right now?
Before you consider buying Centene, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Centene.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
A company with 400 million ‘patents’
One company has quietly compiled more than 400 million official trade secrets.
Trade secrets are like patents in that they protect valuable and proprietary information…
But unlike patents, trade secrets take less time to register… and more importantly, they never expire.
Which is a huge advantage for this little-known company.
You see, this company is using these trade secrets to build the world’s largest “codebase,” which will bethe key to it becoming “America’s Next Big Monopoly.”
Not surprisingly, Wall Street is starting to take notice. And the smart money is already pouring in.
Tech investor Cathie Wood has invested over $80 million already, and Microsoft founder Bill Gates has invested as well.
Get the details here before this story hits the mainstream media.