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The High-Yield Dividend payers will continue to distribute dividends and can provide steady capital appreciation at the same time in the current low yield environment.
Best Buy Co., Inc.
Occidental Petroleum Corporation
CenterPoint Energy, Inc.
South Jersey Industries, Inc.
Helmerich & Payne, Inc.
Otter Tail Corporation
Safety Insurance Group, Inc.
Tupperware Brands Corporation
R.R. Donnelley & Sons Company
Three that I own and plan to buy more of are AT&T (NYSE: T), STORE Capital (NYSE: STOR), and Chevron (NYSE: CVX). If ever there was an imperfect telecommunications stock, it would be AT&T. In fact, some flaws could be considered major grievances. Shifting away from its bread-and-butter mobile network service, the company racked up massive debt purchasing DirecTV in 2015 and Time Warner in 2018, leaving it with a heaping $164 billion in long-term liabilities at the end of its first quarter of 2020.
The oil price collapse is forcing potential buyers of oil and gas fields to try and renegotiate deals or otherwise abandon them entirely
Last week I wrote that this was the end of the Warren Buffett era as Berkshire (BRK)(BRK) underperformed the S&P 500 (SPX) over the entire 2009-2020 bear market. Many Buffett fans responded by saying don’t count Buffett out yet because when (not if) the market tanks again, he’ll have more than $130 billion in cash to scoop up bargains. Based on Berkshire’s SEC filings, three of Buffett’s biggest recent investments—Kraft Heinz (KHC) , Occidental Petroleum (OXY) , and airline stocks—have lost at least $7 billion altogether out of an investment of roughly $10 billion in each.
Not only was Best Buy a stronger company heading into the crisis, but its relative strength over Foot Locker is also only likely to accelerate in the months and years ahead. Both companies reported their first-quarter results last week, illustrating the key differences in their business models, sensitivity to stay-at-home orders, and giving a sneak peak into why Best Buy is the more solid pick of the two. During the May quarter, in which Best Buy, Foot Locker, and other retailers were forced to shut their doors to customers, Best Buy's business resilience was clearly on display.
It also sounds like integrated oil major Chevron (NYSE: CVX). Chevron is the second-largest energy company in the world by market cap, surpassed only by its fellow U.S. oil juggernaut ExxonMobil (NYSE: XOM). Let's take a closer look at Chevron to see whether it's a buy.
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into Tupperware Brands Corporation (NYSE: TUP).
Electronics retailer Best Buy Co., Inc. (NYSE: BBY) reported Thursday first quarter results, highlighted by a 5.7% year-over-year drop in comps which was still better than expected. EPS also came in better than expected but the stock traded lower as investors debated its outlook in an uncertain retail environment.The Best Buy Analysts Morgan Stanley analyst Simeon Gutman maintains an Equal-weight rating on Best Buy's stock with a price target lifted from $75 to $85.Oppenheimer analyst Brian Nagel maintains at Outperform, unchanged $105 price target.KeyBanc Capital Markets Bradley Thomas maintains at Sector Weight, no price target.BofA Securities analyst Curtis Nagle maintains at Neutral, unchanged $80 price target.Raymond James analyst Matthew McClintock maintains at Strong Buy, unchanged $100 price target.7 Takeaways On Best Buy's Q1 Best Buy's first quarter earnings report is highlighted by seven key takeaways, Morgan Stanley's Gutman said in a note. They are: 1\. Comps of 5.7% missed a flat-to-negative, low single-digit figure investors expected, but stimulus measures helped lift sales late in the quarter.2\. Sales were impacted by a greater-than-expected impact from store closures, while some rivals kept all of their stores open throughout the quarter.3\. Despite potential share loss in the quarter, Best Buy has a "realistic path" to growing market share, especially from smaller regional and independent rivals.4\. Online sales were up 155% in the quarter versus an average of 16% growth over the past three years. Management deserves credit for showcasing "the sophistication" of its investments in a multichannel business.5\. Gross margins were down 70 basis points in the quarter and margin headwinds should continue throughout 2020, mostly due to unusually high online sales.6\. SG&A declined by roughly $100 million from last year, as the company may be relatively insulated versus other retailers.7\. The company faces "a few tougher quarters" in 2020, although its outlook for 2021 is unchanged.Related Link: Retail Pro Says Giants Like Amazon, Walmart Will Prevail After Coronavirus: 'It's Not Fair'Checking In With Best Buy Management Oppenheimer analysts spoke with Best Buy's senior management to discuss its earnings report and underlying trends, Nagel wrote in a note.The five highlights include:View more earnings on BBY1\. Best Buy's digital platform and omnichannel capabilities are "responding well" to a shift toward online sales.2\. Physical stores remain an important part of the business, as 65% of all sales are shipped or picked up from a physical store.3\. The company is exploring ways of installing and repairing items in homes.4\. In-store services will remain a key component of the business with health precautions.5\. Sales of TVs and large appliances saw an uptick as customers got used to the new curbside business model.Best Buy's COVID-19 Update Best Buy pivoted its stores in late March toward an enhanced curbside-service only model and paused all in-home delivery options, KeyBanc's Thomas wrote in a note. Encouragingly, the company highlighted very strong demand for in-home installations and repairs in the face of social distancing worries.The company did furlough around 51,000 domestic hourly store workers and close to all part-time workers in April. But Best Buy still managed to retain 82% of full-time store and field employees.In late April, Best Buy resumed large product delivery and in-home installations and repairs for new orders and started to open its doors to clients in new May through a new appointment system."Looking ahead, management is evaluating additional changes, including expanding store hours and opening some stores beyond the current appointment-only model," the analyst wrote.Debate On Best Buy's Near-Term Outlook What's next for Best Buy in an uncertain retail environment is up for debate.On one hand, a potentially "very weak" macro environment makes the case for investors to hold a cautious stance due to a "give back in demand," BofA's Nagle said in a note.Management didn't issue any full-year guidance, but said it saw strong sales retention trends so far in the second quarter.Best Buy hasn't signaled when it expects all stores to reopen and may extend store hours or open some locations beyond the appointment-only model at 700 locations, the analyst said. Given a strong sales retention trend so far in the quarter, "this measured approach makes sense."On the other hand, Raymond James analyst McClintock said Best Buy's outlook remains favorable, as it has sufficient liquidity to outlast any economic uncertainty while still making investments on capturing future market share growth. At a time when others are holding a cautious stance, Raymond James is doing the opposite. The research firm is lifting its fiscal 2021 EPS outlook from $4.85 to $5.30 due to an improved comp sales outlook and "somewhat more optimism" on the COVID-19 recovery path.BBY Price Action Best Buy shares were down 1.66% at $76.92 at the close Friday.Related Link: Chop Chop: Strong Earnings Lift Markets After Tuesday Thud; FOMC Minutes AheadPhoto via Wikimedia. Latest Ratings for BBY DateFirmActionFromTo May 2020Nomura InstinetMaintainsNeutral May 2020Morgan StanleyMaintainsEqual-Weight May 2020BarclaysMaintainsOverweight View More Analyst Ratings for BBY View the Latest Analyst Ratings See more from Benzinga * Retail Pro Says Giants Like Amazon, Walmart Will Prevail After Coronavirus: 'It's Not Fair'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Wall Street ended mixed on Friday in a mostly tame finish to a week of strong gains, as investors gauged China-U.S. tensions and amid ongoing uncertainty about the pace of economic recovery from the coronavirus. President Donald Trump's warning on Thursday that the U.S. would react strongly to China's plan for a national security law in Hong Kong has raised concerns over Washington and Beijing's possibly reneging on their Phase 1 trade deal. Late in the session, stocks edged lower after the U.S. Commerce Department said it was adding 33 Chinese companies and other institutions to an economic blacklist for human rights violations and to address U.S. national security concerns.
Wall Street was mixed on Friday in a mostly tame finish to a week of strong gains, as investors gauged China-U.S. tensions and amid ongoing uncertainty about the pace of economic recovery from the coronavirus. President Donald Trump's warning on Thursday that the U.S. would react strongly to China's plan for a national security law in Hong Kong has raised concerns over Washington and Beijing's possibly reneging on their Phase 1 trade deal. The rhetoric knocked Wall Street off multi-month highs, although the main indexes were still set to add over 2% for the week, fueled by optimism about an eventual coronavirus vaccine and the easing of virus-related curbs.
U.S. stock indexes moved in a flat-to-low range on Friday as investors gauged Sino-U.S. tensions amid continued uncertainty over the pace of economic recovery from the coronavirus. President Donald Trump's warning on Thursday that the U.S. would react strongly to China's plan for a national security law in Hong Kong raised concerns over Washington and Beijing possibly reneging on their Phase-1 trade deal. The rhetoric knocked Wall Street off multi-month highs, although the main indexes were still set to add between 2.8% and 3.1% for the week on optimism over a vaccine and the easing of virus-related curbs.
DOW UPDATE Dragged down by negative returns for shares of Chevron and Caterpillar, the Dow Jones Industrial Average is declining Friday afternoon. Shares of Chevron (CVX) and Caterpillar (CAT) have contributed to the index's intraday decline, as the Dow (DJIA) was most recently trading 74 points (0.
U.S. stock indexes dropped on Friday as Sino-U.S. tensions weighed on markets struggling to gauge the pace of economic recovery from the coronavirus. President Donald Trump's statement on China's plan for a national security law in Hong Kong on Thursday raised concerns over Washington and Beijing possibly reneging on their Phase-1 trade deal. The three main U.S. stock indexes have kept to a tight range in May, but are still on course for weekly gains between 2.5% and 2.8%.
Typically, I like to find unique angles regarding today's hot investment topics. But for beleaguered Chesapeake Energy (NYSE:CHK), I don't have anything original to offer. No matter what your perspective, you can't ignore the dire situation the energy firm finds itself in. Even if you're taking the speculative bullish position - which of course very few are - everyone acknowledges the dangers of betting too heavily on CHK stock.Source: Casimiro PT / Shutterstock.com You're not going to find me adopting the contrarian position here. But you might find it curious that in the midweek session, CHK stock closed up by a double-digit margin. That's not necessarily a fluke occurrence.Just recently, oil prices on Thursday reached their highest point since March, according to a Reuters report. Indeed, "black gold" is presently enjoying a triple-pronged catalyst: lower-than-expected U.S. crude inventory, a so far successful implementation of OPEC-led production cuts, and growing demand as governments worldwide have started relaxing restrictions on people's movements.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBetter yet, Chesapeake's native U.S. market will likely provide further upside catalysts for oil prices. As you know, most states have started reopening their economies to various degrees. But a notable number of states are only implementing regional reopening initiatives. According to the New York Times, they include the western coastal states and New York.Currently, this is a huge drag on the broader economy. There's a big difference between Wyoming reopening - no offense to any Wyomingites - versus energy-hungry California. But it's also a longer-term opportunity for CHK stock and its ilk. * 7 Excellent Penny Stocks Ready to Roar As these core states open back up, a robust surge of demand will enter the market. Nevertheless, I don't think it will be enough to save Chesapeake Energy. CHK Stock Was Hurting Well Before the TroublesLately, I find myself getting frustrated with the mainstream media's attempt to manipulate math. We're hearing so much talk about certain industries recovering from their March lows and oil is no exception. But the media tends to isolate their comparisons to only the recently recorded troughs.If we compare oil prices to where they were in the beginning of the year, the situation doesn't look so much like a recovery, but instead a minor mitigation of a disaster. Go back several years and you'll start to see a trend. Oil prices peaked in the early 2010s decade and they don't appear to be making a comeback to those levels anytime soon.This is incredibly problematic if you're buying CHK stock on the hopes of a recovery. Yes, oil prices are recovering, but only against their recent lows. Against any other comparison within the last 15 years, you won't come away with an optimistic assessment.Even if oil prices substantively recovered, so what? The oil markets are a game of musical chairs. It's a reasonably safe bet that sector giants Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) will have a seat. CHK stock? That's not a gamble … that's throwing your money away.Right now, we're seeing oil stocks rise in anticipation of the consumer economy returning. For instance, more people flying would equate to higher oil demand. Click to EnlargeSource: Chart by Josh Enomoto But if you compare CHK stock to jet fuel prices, you'll notice that long-term waning demand for jet fuel has coincided with weakness in Chesapeake shares. So if travel demand "recovers," jet fuel will likely only recover to just before pre-pandemic levels.As you can see, that wasn't sustainable for CHK. Why would it be sustainable in the new normal? So Many Unknowns for ChesapeakeContrarians might point out that consumers will likely travel en masse in their personal vehicles rather than flying. Thus, investors shouldn't ignore the robust automobile traffic demand that's already rising across the U.S.I won't disagree with that. For many metropolitan areas in California, for instance, they looked like ghost towns. Therefore, some semblance of the old normal will represent a nice lift for energy firms.But specific to California, we don't know when powerhouse cities like Los Angeles will reopen. And the longer such cities stay shuttered, the more they risk severe economic damage.Let's not forget the big one - jobs. Over a nine-week period, nearly 39 million Americans filed for unemployment benefits. Current trends suggest that millions more will file over the next several weeks. Until most consumers feel comfortable about their employment situation, travel volume overall will remain deflated.Thus, while many catalysts are potentially available over the horizon, energy companies need patience to actualize them. But that's another problem, isn't it? Because the one thing that Chesapeake doesn't have is time.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Chesapeake Energy Is Just a Dead Cat Bouncing appeared first on InvestorPlace.
After last month's collapse, oil prices have bounced back. Will BP (NYSE:BP) stock see an additional boost? The oil giant's shares have moved higher from their March sell-off lows. Rising from $15.51 per share to $23.62 per share, BP stock got a more than 50% gain in two months.Source: TK Kurikawa / Shutterstock.com Yet, other integrated names have performed even better during this timeframe. Take Chevron (NYSE:CVX), for instance. CVX shares are up about 80% from their 52-week lows. ConocoPhillips (NYSE:COP)? Their shares have doubled since their March lows.So, what's the issue here? More like two issues. With investors anticipating a dividend cut and the company shouldering a massive debt load, there are plenty of reasons for concern.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite these overhangs, today's prices may be a solid entry point for BP stock. Sure, risks remain. However, energy prices continue to bounce back. With the novel coronavirus soon in the rearview mirror, "return to normal" will finally happen. With these factors in mind, there's plenty of potential for shares to move higher. Why the Rebound Has Only Just Started For BP StockOil may no longer be trading at negative prices, but it's still substantially lower than where it was just a few months prior. At the start of 2020, crude oil was trading above $60 a barrel. Today? Around $34 a barrel. * 7 Excellent Penny Stocks Ready to Roar Besides beaten-down prices, things are moving in the right direction. The coronavirus took its toll. With much of the world's economic activity brought to a halt, it's no surprise demand for petroleum collapsed.Yet, with the pandemic slowly ending, expect energy prices to continue bouncing back. Granted, experts like the EIA (Energy Information Administration) don't see prices heading above $50 per barrel until the end of 2021.However, BP is taking active steps to improve its cash flow situation while oil lingers at lower-than-normal prices. By slashing costs, the company expects its breakeven oil price to fall from $56 a barrel in 2019 to just $35 a barrel in 2021.Granted, this implies continued profitability challenges this year. But with Wall Street taking a forward-looking approach, shares could continue to climb in tandem with oil prices, as investors anticipate a rebound in net income and cash flow.In short, shares look appealing as a bottom-fisher's buy. There are some risks to keep in mind before you put in a buy order. Is the Dividend Safe?A dividend cut seems to be the other shoe that's yet to drop. As InvestorPlace's Tom Taulli wrote May 18, the company's current cash flows can't cover the dividend. In short, shares now have a seemingly high yield of 10.7%, but that's only because investors expect a cut sometime soon.Is their validity to these fears? Peers like Royal Dutch Shell (NYSE:RDS.B, NYSE:RDS.A) have already slashed their dividends. And analysts like Morgan Stanley's Martijn Rats think BP is the next one to announce a cut. He sees the company reducing its dividend by half in order to avoid taking on additional debt.Speaking of debt, that's the other issue at hand with this company. Taulli touched on this in his write-up, stating that the company's outstanding debt continues to climb. Coupled with reduced cash flow, this could mean a serious liquidity situation.Or does it? Based on a market update from back in April, the company detailed their liquidity situation, and their game plan to ride out today's storms. As of March 31, BP had $32 billion in cash and available credit lines.To combat sharp declines in cash flow, the company announced a 25% cut to capital expenditures. They also plan billions in cost-cutting across their upstream (exploration) and downstream (refining/marketing) business units. Pending asset sales could also free up additional capital.The situation at BP is far from perfect, yet these aforementioned risks are likely accounted for in today's valuation. When the other shoes does drop, don't expect shares to fall much further from here. Risks Remain, But BP Could Move HigherThings turn on a dime in the oil patch. Whether it be Middle East conflict, trade wars, or pandemics, it's tough to "predict the unpredictable" with energy prices. With today's crisis slowly dissipating, it's fair to assume a bounce back in demand is just around the corner. In short, plenty of reason for oil prices to continue trending higher.Although the company has a lot on its plate regarding debt and an unsustainable dividend, investors have largely priced these risks into the current share price. If and when the dividend gets a haircut, don't expect shares to sell off further.In short, with the potential for shares to rally in tandem with rising oil prices, consider BP stock a buy.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Despite Challenges, Consider BP Stock a Bottom-Fisher's Buy appeared first on InvestorPlace.
U.S. stock indexes moved in a flat-to-low range on Friday as simmering Sino-U.S. tensions weighed on markets struggling to gauge the pace of economic recovery from the coronavirus. President Donald Trump's rhetoric against China's plan for a national security law in Hong Kong on Thursday raised concerns over Washington and Beijing reneging on their phase-1 trade deal.
The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, National Oilwell Varco, HollyFrontier and Halliburton
DOW UPDATE The Dow Jones Industrial Average is falling Friday morning with shares of Exxon Mobil and Chevron seeing the biggest losses for the blue-chip average. The Dow (DJIA) was most recently trading 136 points, or 0.
U.S. stock indexes were set for a near-flat open on Friday as investors weighed hopes of more stimulus to revive an ailing economy against simmering Sino-U.S. trade tensions. "Market sentiment is really vulnerable to expensive valuation at the moment," said Andrea Cicione, head of strategy at TS Lombard.
Shares of Chevron Corp. and Exxon Mobil Corp. fell in premarket trading Friday, enough to pace the Dow Jones Industrial Average's early decliners, as a selloff on crude oil futures weighed on the energy sector. Chevron shares shed 0.8% and Exxon Mobil's stock fell 0.6%, while Dow futures rose 19 points, or 0.1%. Crude futures dropped 3.7%, amid concerns over economic growth in China and growing worries of increasing trade friction between the U.S. and China. The SPDR Energy Select Sector ETF slid TK% ahead of the open. Among other more-active energy stocks, Occidental Petroleum Corp. slipped 0.4%, Marathon Oil Corp. gave up 0.8%, Apache Corp. fell 1.1% and Halliburton Co. lost 1.3%.
Oil prices have gone on a wild ride this year, taking most oil stocks with them. Crude, however, seems to have found its bottom and has recovered quite a bit of ground over the past month. That's leading many investors to consider buying oil stocks for the next leg of the rebound.
The Board of Directors of Best Buy Co., Inc. (NYSE:BBY) has authorized the payment of a regular quarterly cash dividend of $0.55 per common share. The quarterly dividend is payable on July 2, 2020, to shareholders of record as of the close of business on June 11, 2020. The company had 257,608,566 shares of common stock issued and outstanding as of May 2, 2020.