Bob Haegele, Author at Investment U https://investmentu.com/author/bhaegele/ Master your finances, tuition-free. Thu, 06 Oct 2022 18:30:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://investmentu.com/wp-content/uploads/2019/07/cropped-iu-favicon-copy-32x32.png Bob Haegele, Author at Investment U https://investmentu.com/author/bhaegele/ 32 32 Graphene Stocks to Invest In https://investmentu.com/graphene-stocks/ Thu, 30 Dec 2021 15:17:56 +0000 https://investmentu.com/?p=92594 Graphene is a great investment because it has so many uses. If you believe it's the next big thing, here are the best graphene stocks to buy.

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Investing in graphene stocks is an interesting investment opportunity because the material has so many uses. It’s a bit like investing in steel, but graphene is 200 times stronger than steel and 1,000 times lighter than paper. As a result, graphene is a wonder material that can be used in many ways, such as in anti-corrosion coating, flexible displays, solar panels and even DNA sequencing.

Of course, you might wonder why graphene isn’t everywhere if it’s so amazing. In the past, that has mostly been for one big reason: cost. Using traditional manufacturing methods, graphene could cost as much as $200,000 per ton to produce.

However, things are changing all the time, and researchers at Rice University have been developing a way to produce graphene from trash. Yes, banana peels, coffee grounds, you name it. As production costs fall, graphene could become the material of the future, meaning there is a lot of opportunity for investors to buy into the top graphene companies.

Best Graphene Stocks to Buy

If you believe graphene is the next big thing and want to invest now, here are the best stocks to buy:

  • Applied Graphene Materials (OTC: APGMF)
  • Haydale Graphene Industries (OTC: HDGHF)
  • First Graphene (OTC: FGPHF)
  • Aixtron (OTC: AIXXF)
  • Versarien (OTC: VRSRF)

Graphene stocks to invest in.

You may have noticed that all of our graphene stocks are over-the-counter (OTC). This means they may be speculative and less regulated. However, they are some of the best graphene stocks to buy right now.

No. 5 Applied Graphene Materials

AGM is a UK-based company that specializes in graphene production, specifically in the application of graphene nanoplatelet dispersions. Graphene dispersion delivers graphene particles in a liquid material that creates a stable and consistent compound. AGM also produces graphene paints that are less prone to corrosion.

AGM stock is currently trading at less than a quarter of the price of its most recent high when it sold for $1.09 per share in January 2021. With a market cap of $13.4 million, AGM is a small company. While it is has not been profitable in the past, its Q1 2022 revenue is up about 10% year-over-year (YOY). Although its cash reserves are declining, it could still see modest growth in its share price over the next year as graphene technologies continue to develop.

No. 4 Haydale Graphene Industries

Another UK-based company, Haydale Graphene Industries produces silicon carbide, graphene and composite solutions for the energy and infrastructure sectors. It aims to extend the lifecycle of assets with its products. It produces a variety of products, including composites, elastomers and silicon carbide whiskers.

Haydale has a market cap of about $14.5 million. Its stock is also trading at a fraction of what it was a few years ago, but its share price has increased by around 15% since February 2022. Its net income grew recently, increasing about 15% from 2020 to 2021. However, investors should be wary of its net income, profit margin and net change in cash. All of which were negative in some recent quarters. But as graphene manufacturing becomes easier, this could be one of the top graphene companies to watch.

No. 3 First Graphene

First Graphene is an Australian producer of graphene products, including PureGraph. These products are high-performing additives with a wide range of uses, including plastics, composites, rubbers and elastomers, cement and concrete and inks and coatings. Sectors that can benefit from its products include mining services, leisure equipment, textiles, automotive and construction.

First Graphene’s market cap is around $52 million. And its shares price has steadily declined from its January 2021 high. Although the company is not yet profitable, it increased its revenue YOY in every quarter of FY 2021. Still, its net income for Q4 2021 was -$1.24 million AUD. Even though this is still a loss, it’s an improvement from Q2 2021, where net income was -$2.12 million AUD. For now, we’ll keep an eye on First Graphene stock and see if it improves. This could be a stock to add to your list of graphene stocks to buy.

No. 2 Aixtron

Founded in 1983, Aixtron is one of the oldest companies on this list of graphene stocks. Its core business is in manufacturing metalorganic chemical vapor deposition equipment for clients in the semiconductor industry. However, its capabilities also allow it to integrate graphene and 2D materials into semiconductor devices. As an “old” company, at least in this space, some investors see Aixtron as a safer bet than newer pure graphene producers.

In contrast with other stocks on this list, AIXXF is trading below, but very close to, its August 2021 high. It had fallen to about $20 per share in December 2021, but is slowly approaching $30 per share again. Aixtron is worth around $3 billion and it pays a dividend. Plus, most of its fundamentals are in the green, including a 51% YOY increase in revenue and a 110% increase in net income in Q2 2022. It also has a 16.9% profit margin. As a result, its share price could continue to climb in the next 12 months, making it one of the top graphene companies.

Graphene Stocks to Buy No. 1 Versarien

Versarien is an advanced engineering materials group that leverages proprietary technology. It has nine different subsidiaries. Two of which include Versarien Graphene Limited and Cambridge Graphene Limited. The former is Versarien’s dedicated graphene manufacturing business. And its Cambridge subsidiary is a spin-off of Cambridge University. This subsidiary supplies novel graphene inks and develops graphene/2D materials technology and applications.

Despite having the appearance of a large company with all its subsidiaries, UK-based Versarien has a market cap of around $35 million. Its stock is trading under $0.20 per share after reaching nearly $1 at the beginning of 2021. While the company is currently not profitable, its fundamentals are in the green. Its revenue increased about 10% YOY in Q1 2022. Its profit margin is up 48.4%. And its net income is up 43%. Look for this graphene stock’s share price to improve along with its fundamentals.

The Bottom Line on the Best Graphene Stocks

All of the graphene companies listed above are somewhat of a bet on the future. If technology continues to develop at a steady rate, it could be the material of the future. With so many potential uses, the only thing holding it back is high production costs.

As always remember to do your research and due diligence before making any investment decisions. There is a wide world of investing opportunities for you to explore and this is just one of them…

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Top Shorted Stocks to Buy https://investmentu.com/top-shorted-stocks-to-buy/ Thu, 30 Dec 2021 15:05:34 +0000 https://investmentu.com/?p=92589 Top shorted stocks are usually those that are overvalued and have a high probability of experiencing a loss in value. Here are the top ones to buy now.

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Stock shorting is a way for traders to make money as they speculate on the decline of a share price. Top shorted stocks are usually those that are overvalued and thus have a high probability of experiencing a loss in value. In short, this allows traders to make money from those willing to pay market rates for the stock.

When a trader opens a short position, they borrow shares of the stock they believe will decrease in value. They then sell the shares and later buy them back if the stock has dropped as they expected. Then, the trader returns the shares to the original owner and can pocket the difference between the purchase price and the (hopefully higher) sale price.

In addition, shorting stocks may allow some traders to make a large sum of money rather quickly. Michael Burry famously $100 million shorting the housing market amidst the Great Recession, plus $750 million in profits for investors.

However, shorting stocks is a high-risk strategy that can lead to infinite losses due to the margin calls. To clarify, this is an advanced strategy usually reserved for professional traders and investors. Nevertheless, if you are interested in shorting, here are the top shorted stocks to buy:

  • Esperion Therapeutics Inc. (Nasdaq: ESPR)
  • Heron Therapeutics Inc. (Nasdaq: HRTX)
  • Biofrontera, Inc. (Nasdaq: BFRI)
  • Beyond Meat, Inc. (Nasdaq: BYND)
  • Blink Charging Co. (Nasdaq: BLNK)

Top shorted stocks to buy.

Top Shorted Stocks to Buy

Now, we’ll take a closer look at each of these top shorted stocks. And why they make the list.

Esperion Therapeutics Inc.

Esperion is a therapeutics company focused on developing and commercializing medicines to reduce cardiovascular risk. It is based in Ann Arbor, Michigan. The company has two products, Nexletol and Nexlizet. Both medications are for those requiring additional lowering of LDL-C.

Helping drive short positions in ESPR is the company’s recent public offering of $225 million of stock. However, the offering did not go as planned, and Esperion’s shares dropped 40% to $5.39 on December 3. As of November 2021, nearly 35% of ESPR’s float position was shorted.

Biofrontera, Inc.

This top shorted stocks company specializes in dermatology. Biofrontera develops and provides photodynamic therapy and topical antibiotics. Its products include Xepi and Ameluz, both of which are skin creams for topical use. In addition, it also manufacturers the BF-RhodoLED, an LED lamp used in exam rooms. The company is based in Leverkusen, Germany.

Biofrontera, founded in 1997, went public in late October 2021. It debuted with a share price of just under $4.50. And it climbed to about $13.15 in late December. Since then, its shares are down more than 30%. More importantly, BFRI is one of the top shorted stocks right now. It has more than 89% of its float position shorted.

Heron Therapeutics Inc.

Heron Therapeutics is a biotechnology company focusing on acute care and oncology care. On the acute care side, its products help reduce postoperative pain as well as nausea and vomiting. For oncological care, it helps reduce the negative side effects of cancer treatments. Heron’s products include Sustol, Cinvanti and Zynrelef.

Recently, Heron (HRTX) has been heavily shorted. Shares are down more than 50% since early December 2021. And Heron currently has a negative earnings per share (EPS). Its profit margin is also negative, as is its cash on hand. Its stock is considered highly overvalued at the moment as well. In November 2021, nearly 32% of its float position was shorted.

Keep reading for more info on the top shorted stocks.

Top Shorted Stocks No. 2 Beyond Meat, Inc.

Beyond Meat is a top shorted stock that produces plant-based meat substitutes. A product that has gained popularity in recent years. Along with Impossible Foods and similar companies, some see Beyond Meat as the future of the food industry. It produces plant-based burgers, sausage, chicken and more.

Despite this, Beyond Meat has a target on its back for short-sellers. BYND is well off its high after the company’s IPO. But even compared to its most recent peak of $192 in early January 2021, it is down significantly. It’s down less than $65 per share. To make matters worse, the company is not profitable and is losing cash. As a result, more than 34% of its float position is currently being shorted.

Top Shorted Stocks No. 1 Blink Charging Co.

Blink Charging designs, manufactures, owns, and operates EV charging stations. Its products include both level 2 and level 3 or “DC fast” charging stations. Its charging stations can deliver up to 175 kW of power. And it also manufactures mobile charging stations. As of 2020, it has over 23,000 charging stations.

Electric vehicles and EV charging are growing industries. However, Blink struggles to keep up with larger competitors such as ChargePoint. Perhaps that is partly to blame for BLNK’s volatile price. Which has fallen from over $60 per share in early 2021 to around $26 in December 2021. Plus, Blink is losing money every quarter. All of this adds up to more than 34% of Blink’s shares being shorted.

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Dividends in Arrears Definition https://investmentu.com/dividends-in-arrears/ Tue, 28 Dec 2021 20:16:53 +0000 https://investmentu.com/?p=92517 Dividends in arrears don’t apply to every type of stock. Let’s take a look at who needs to know about them and how this situation arises.

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Dividends in arrears are dividends that have not yet been paid to certain shareholders. Not all types of stock come with a guaranteed dividend. However, some types do. Hence, those shareholders expect to see regular dividend payments.

Unfortunately, there may be times when companies are not able to make their expected dividend payments. When this happens, they record on the balance sheet as dividends in arrears.

As mentioned, dividends in arrears don’t apply to every type of stock. Let’s take a look at who needs to know about them and how this situation arises.

Dividends in arrears definition.

What Are Dividends in Arrears?

Dividends in arrears are dividend payments that have not yet been paid on cumulative preferred stock, also known as preference shares. In this case, cumulative refers to the fact that these dividends will accumulate until payment.

Dividends are ordinarily paid to preference shares quarterly or annually. And the amount is typically based on the par value of the stock. Hence, a 3% dividend on preferred stock with a $100 par value receives a $3 dividend. But if a company is struggling financially, its board of directors may vote to suspend dividend payments. This will usually last until its cash flow improves.

Keep reading for more info on dividends in arrears.

Common Stock vs. Preferred Stock

In some cases, companies pay dividends to all of their shareholders. This includes owners of common stock. It’s the type of stock the majority of people own. Preferred stock is an asset that falls between bonds and common stock. This is because, like bonds, a preference share has a guaranteed interest payment. And this interest payment comes in the form of a dividend.

Owners of this stock have priority when receiving dividends. They are also paid before common stockholders. But dividend payments are not guaranteed to owners of common stock. In addition, common stock grants shareholders voting rights. Voting rights allow shareholders to vote on decisions such as electing board members.

There can be cash left over after preference shareholders receive payment. And if this is the case, a company may decide to issue dividends to common stockholders as well. But again, this is never a guarantee for common stockholders.

The other side of the coin is a scenario in which a company cannot afford to issue dividends. This can happen due to a recession or a whole host of other issues. When this happens, a company may have dividends in arrears that is owes to its preference shareholders.

What Happens When a Company Can’t Make Its Dividend Payments?

You don’t have to worry about any complicated calculations to determine your dividends. For preference shares, companies list the amount of their dividend payments in their financial filings.

For example, companies issue a prospectus to shareholders that gives information about dividend payments. These are also listed on the U.S. Securities and Exchange Commission’s EDGAR website. However, companies can’t always issue the dividends they promise, even to preferred shareholders.

If a company cannot make its dividend payments, they don’t simply disappear. Instead, they move to the balance sheet as dividends in arrears. The expectation is that the company will resume making dividend payments when it’s able.

Cumulative vs. Non-Cumulative Preferred Stock

Dividends in arrears only apply to cumulative preference shares. A company can have several consecutive quarters with limited cash flow. If this happens, it may miss several dividend payments. This will, in turn, add up as dividends in arrears. But this only applies if a company’s preference share is cumulative.

If a company issues non-cumulative preference shares, dividends on those shares are not cumulative. This means it isn’t required to pay dividend payments it missed. Even if its cash flow later improves. Non-cumulative preference shares is much less common than cumulative preference shares. This is great news for preference shareholders.

Dividends in Arrears: The Bottom Line

Those who own cumulative preference shares will receive regular dividend payments. And it’s usually issued quarterly or annually. However, a company’s board may opt to suspend dividend payments. The board is likely to do this if it doesn’t have sufficient cash flow. If preference shares are cumulative and dividends are suspended, they are added to the company’s balance sheet as dividends in arrears.

And if there is a suspension, owners of cumulative preference shares receive payouts before owners of common stock receive dividend payments. 

If a company has dividends in arrears, it will once again issue dividends to owners of preference shares. And that’s assuming they are cumulative shares. Until then, they remain on the company’s balance sheet as dividends in arrears.

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The Best Stocks for 2022 https://investmentu.com/best-stocks-for-2022/ Mon, 20 Dec 2021 16:31:29 +0000 https://investmentu.com/?p=92362 As we look to the year that lies ahead, you might be thinking about what the best stocks for 2022 are. Check out my list of the best ones below.

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Believe it or not, 2022 is fast approaching. As we look to the year that lies ahead, you might be thinking about what the best stocks for 2022 are. After all, whether it’s due to the COVID-19 pandemic or some other reason, many of us are ready for a fresh start.

Whether you are new to investing or simply looking to start 2022 on the right foot, here are the best stocks for 2022:

  • Uber Technologies, Inc. (NYSE: UBER)
  • The Walt Disney Company (NYSE: DIS)
  • Public Storage (NYSE: PSA)
  • CVS Health Corporation (NYSE: CVS)
  • Starbucks Corporation (Nasdaq: SBUX)

Chances are high that you know all of these names. The reason for this is, as mentioned, to start 2022 on the right foot. In addition, these companies are doing well recently in spite of the pandemic. Hence, you should consider adding them to your portfolio in 2022 for consistent and reliable growth.

If you decide to add others that may have more upside, that is of course your choice, but these can be considered your anchor. Let’s take a closer look at each of them.

The best stocks for 2022.

Best Stocks for 2022

No. 5 Uber Technologies, Inc.

Uber is one of the businesses that seemingly had an uncertain future early in the pandemic. No one was going anywhere, and we were so unsure about how the virus even worked that we didn’t want to be in the same car as a stranger.

Today, Uber requires everyone in the vehicle to wear face coverings. If the weather is warm, the car windows can even be rolled down for extra ventilation. In other words, Uber rides are not nearly as scary as they were a year ago, and we have a good idea of how to stay safe. Tourism is even beginning to resume to a degree.

Uber stock didn’t decline nearly as much as some stocks did in March 2020, and analyst projections have this stock being “driven” up significantly over the next 12 months.

No. 4 The Walt Disney Company

There was a time in 2020 when things looked grim for Walt Disney, as they did for many businesses. Disney World was closed for four months, and closures spanned across the globe. However, the theme park that has become a media giant had more than a few tricks up its sleeve. It helped that it just happened to launch Disney+ in November 2019, mere months before the pandemic hit the United States. Disney+ has been a massive success, propelled by shows like The Mandalorian and Loki.

As Disney has acquired the rights to many media companies, it has an expansive library under its belt. Now, Disney parks are reopened, and 2022 looks to be an excellent year for the company. DIS shares have nearly doubled since March 2020 and with Disney’s current position, they should only continue to rise in the year ahead, making it one of the best stocks for 2022. 

No. 3 Public Storage

If you have ever moved or been in a temporary living situation, you may have used Public Storage or a similar service. After all, Public Storage is the largest self-storage company in the U.S. with over 2,400 locations. It is organized as a REIT, meaning it is also an easy way to invest in real estate. Public Storage is a highly profitable business which is why it’s a great addition to your best stocks for 2022 portfolio.

Just how profitable is Public Storage? In Q3 2021 it posted a nearly 53% profit margin. In each of the past four quarters, its profit margin has been around 50%. Q3 2021 was particularly strong for Public Storage as it posted year-over-year (YOY) gains across the board. Its revenue was nearly $1 billion for Q3 along and its net income was $490 million.

Best Stocks for 2022 No. 2 CVS Health Corporation

CVS is one of the largest convenience and drugstore chains in America, and that makes it an excellent stock to hold in any portfolio. The company merged with Aetna back in 2018, and CVS has become an integral part of our healthcare system ever since. Now, with COVID-19 shots, flu shots and prescription medication, it’s hard to imagine a world without CVS anytime soon.

CVS shares have been climbing steadily; just since February 2021, its price has increased from under $70 to just over $100, a greater than 40% increase in under a year. It also pays a 2.19% dividend and has an EPS of 5.73. CVS’s margins are notably slimmer; in each of the past four quarters, its net profit has been in the range of 1.4% to 3.8%. Still, it posted gains across the board in Q3 2021 with a net income of $1.6 billion and nearly $10 billion cash on hand. This is a great addition to your list of best stocks for 2022. 

Best Stocks for 2022 No. 1 Starbucks Corporation

Coffee? Yes please: that’s what Americans are saying once again to Starbucks. The coffee chain is still the biggest in the U.S., claiming more locations than Dunkin’ (though still slightly behind McDonald’s). However, Starbucks has big expansion plans. Even though it already has over 30,000 stores globally, it plans to expand that number to 55,000 stores by 2050. That expansion plan said it would add 1,100 stores in 2021.

Granted, shares of SBUX do appear to be somewhat overvalued at the moment. It does have a relatively high P/E ratio of 30.72. However, it does net you a dividend of a little better than 2%, and Starbucks has been posting huge gains as of late. For instance, its Q3 2021 net income was up YOY by nearly 350% for a total of $1.76 billion. It posted a 21.66% profit which was up 242% YoY, and its operating income was $1.46 billion, up 102% YOY.

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Best Undervalued Dividend Stocks https://investmentu.com/undervalued-dividend-stocks/ Mon, 20 Dec 2021 16:04:03 +0000 https://investmentu.com/?p=92359 These are some of the undervalued dividend stocks to buy, and we’ll take a look at why you should consider adding them to your portfolio.

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Undervalued stocks are a great way to boost your portfolio’s yields as you are essentially buying stocks at a discount. When you add dividends to the mix, those stocks also become a source of income, meaning undervalued dividend stocks will pay you every quarter rather than only when you decide to sell shares.

Keep in mind that dividends aren’t guaranteed; companies could decide to cut dividends for any number of reasons. Whether it’s because they are struggling or because they want to invest more in R&D, it definitely happens.

That being said, you shouldn’t necessarily target the highest dividend possible. Very high dividends are sometimes given out by startups looking to attract investors, but they may not be sustainable. That’s why these undervalued dividend stocks are from names you may already know:

  • Invesco Ltd. (NYSE: IVZ)
  • Merck & Co., Inc. (NYSE: MRK)
  • Lockheed Martin Corporation (NYSE: LMT)
  • Bristol-Myers Squibb Company (NYSE: BMY)
  • AT&T Inc. (NYSE: T)

Undervalued dividend stocks to buy.

Best Undervalued Dividend Stocks

These are some of the undervalued dividend stocks to buy, and we’ll take a look at why you should consider adding them to your portfolio.

No. 5 Invesco

Invesco is a name index fund investors will know as they may be invested in Invesco funds such as QQQ. However, you can also invest directly in Invesco itself; the company has headquarters in Atlanta, Georgia, and has offices in 20 additional countries. Invesco offers a variety of investment products, including index funds, mutual funds, money market funds and unit trusts.

Invesco stock (IVZ) has a market cap of nearly $11 billion. Its P/E ratio is 9.33 and its earnings per share (EPS) is 2.53. As far as dividends, it has a yield of 2.99%. This stock is seen as moderately undervalued and should continue to increase in price. In Q3 2020, Invesco has increased its year-over-year (YOY) net income by 55% while posting a net profit of 22%. It’s a great addition to your list of undervalued dividend stocks to invest in. 

No. 4 Merck

Merck is an American pharmaceutical company based in Kenilworth, New Jersey. This undervalued dividend stock develops vaccines, medicines, biologic therapies and animal health products. Merck has also been developing a drug that will treat those who become infected with COVID-19, which will reduce the chances of hospitalization and death.

Merck’s stock price (MRK) has been mostly flat over the past year, hovering in the $70 to $80 range. However, analysis shows that is both highly undervalued and high quality. Its stock has a P/E ratio of 25.83 and an EPS of 2.83; it also has a dividend yield of 3.76%. Analysts look for the stock to increase its price by a quarter over the next year. For Q3 2020, Merck increased its YOY net income by 55% while posting a net profit of 35%.

No. 3 Lockheed Martin

Lockheed Martin is a large corporation that provides products and services for a number of industries. These include aerospace, arms, defense, information security and technology. The company has more than 100,000 employees to support all of those operations. It has locations all over the United States and in other countries, too. 

Lockheed Martin stock (LMT) has a market cap of $94 billion. Its P/E ratio is 15.71 and its EPS is 21.71, and the stock has a dividend yield of 3.30%. Its share price is slightly lower than it was a year ago, though it has seen ups and downs. Nevertheless, this undervalued dividend stock may see a slight increase over the next year. Its Q3 2021 earnings were a letdown, though; YOY numbers were down in almost every category.

Undervalued Dividend Stocks No. 2 Bristol-Myers Squibb

Bristol-Myers Squibb is a Fortune 500 pharmaceutical company based in New York. The company produces pharmaceuticals in a number of therapeutic areas, including cancer, HIV/AIDS, diabetes and hepatitis. The company has locations across the globe. Bristol-Myers and Squibb were two separate companies before merging in 1989.

The company’s stock (BMY) has seen a slight rise recently but has since cooled; now, its price is a little lower than it was a year ago. It has a market cap of nearly $128 billion and pays a dividend of 3.45%. It does have an EPS of -2.42, which is something to keep in mind. Still, it is a high-quality, undervalued dividend stock, which means we could see a slight increase in its price. Most recently, the company’s net profit is 13%.

Undervalued Dividend Stocks No. 1 AT&T

AT&T is the largest wireless provider in the United States, meaning it is always on the radar of anyone thinking about communication companies. Like many integrated companies today, it also provides related services, such as home internet and TV. AT&T is based in Dallas, Texas.

AT&T stock (T) has a market cap of over $165 billion. Its P/E ratio is a bit high at 179.61, and it has an EPS of just 0.13. Its share price has also been on a downward trend for the past year, going from over $31 to around $23. However, it has a high dividend yield of 9%. This undervalued dividend stock may increase in price over the next year. For Q3 2020, AT&T’s revenue has been down slightly YOY for a decrease of 5.7%. Nevertheless, it increased its net income by 110% and posted a net profit of 14.8%.

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5 Trucking Stocks to Add to Your Portfolio https://investmentu.com/trucking-stocks/ Sat, 18 Dec 2021 13:00:22 +0000 https://investmentu.com/?p=92336 Shipping via truck has begun to improve recently, making trucking stocks appealing to investors. Now, let’s take a closer look at a few.

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While economic activity is still strained in many ways, some sectors are finally recovering and even returning to near-pre-pandemic levels. For instance, while shipping at the country’s ports remains a significant bottleneck, shipping via truck has begun to improve over the past several months, making trucking stocks appealing to investors.

While increases in freight declined mid-year in 2021. The Cass Freight Index has shown some growth since then into 2022. Even showing year-over-year (YOY) increases in recent months from a mostly solid 2021.

Although freight was reduced in late summer and early fall, one can expect rates to increase yet again as we approach the holidays. Of course, if you want to capitalize on the increases in freight, the way to do so is not through buying goods but through investing. And, indeed, there are several trucking stocks to buy if you are looking to invest.

Here are some of the best trucking stocks right now:

  • Old Dominion Freight Line (Nasdaq: ODFL)
  • TFI International Inc. (NYSE: TFII)
  • ArcBest Corp (Nasdaq: ARCB)
  • USA Truck Inc. (Nasdaq: USAK)
  • Saia Inc. (Nasdaq: SAIA)

Trucking stocks to invest in.

Best Trucking Stocks Right Now

Now, let’s take a closer look at each of these trucking stocks and why they are a good addition to your portfolio.

No. 5 Old Dominion Freight Line

Old Dominion Freight Line is a less than truckload (LTL) shipping company based in Thomasville, NC. LTL is exactly what it sounds like: a load that is considered less than a full truckload, which is between 24 and 26 pallets. A full truckload trailer is between 48’ and 53’ feet, while Old Dominion’s trailers are between 26’ and 53’.

This trucking stock is worth over $28 billion and its stock has a P/E ratio of 24. It also pays a dividend with a forward yield of 0.47%. Its most recent earnings report showed quarterly revenue of $1.7 billion, a YOY increase of 26%. Net income also showed strong YOY growth at $376 million, up almost 40%. Its share price has roughly doubled since its pandemic low.

No. 4 TFI International

TFI International is a Canadian transportation and logistics company based in Quebec. It provides LTL, package and courier, logistics and truckload services. TFI is the largest LTL provider in Canada and has nearly 50,000 trailers and over 200 straight trucks. It expanded to U.S. parcel services with a 2010 acquisition. Its stock price has increased nearly tenfold from its pandemic low in March 2020.

The company is worth over $8 billion and its stock has a P/E ratio of 15 and an EPS of $6.52. It also pays a forward dividend of 1.14%. Revenue for the quarter ending June 2022 was $2.4 billion compared to $1.84 billion last year. Its net income, however, was down 33% YOY to $277 million . The EBITDA increased from $246 million to $386 million. Its share price has increased over 400% since its pandemic low, one of the largest increases among all trucking stocks.

No. 3 ArcBest Corporation

ArcBest Corporation is a holding company for truckload and LTL freight. Its business also includes household goods moving, freight brokerage and transportation management. Its headquarters is located in Fort Smith, Arkansas. It’s formerly known as Arkansas Best before being renamed to ArcBest in 2014.

ArcBest is valued at just over $1.8 billion and its stock has a P/E ratio of 6 with an EPS of $11.53. It pays a dividend with a forward yield of 0.66%. Its most recent available earnings report, for the quarter ending June 2022, shows revenues of $1.4 million, compared to $949 million last year. Operating income was $137 million, up from just $74 million last year and net income was $102 million, up from $61 million. Its share price has also shown impressive growth since its March 2020 low.

Best Trucking Stocks No. 2 USA Truck Inc.

USA Truck Inc. is a smaller trucking stock with headquarters in Van Buren, Arkansas. This trucking stock provides “capacity solutions” to customers throughout North America and offers both asset and asset-light services. Those include customized truckload, dedicated contract carriage and intermodal and third-party logistics freight management services.

USA Truck’s market cap is just $286 million, but it has a favorable P/E ratio of around 9 and an EPS of $3.69. Its net income has seen a slight decrease for Q2 2022 to $3.2 million, down from $4.2 million last year. Revenue has increased from $170 million to $202 million. Its share price has grown around eight times its pandemic low and analysts expect it to increase quite a bit more over the next year. In fact, it has one of the most favorable outlooks of the trucking stocks on this list.

Best Trucking Stocks No. 1 Saia Inc.

Saia Inc. is an LTL and freight shipping logistics company based in Johns Creek, Georgia. It originated in 1924 with a single vehicle in Louisiana; it was actually founder Louis Saia Jr.’s car with the seats taken out. Since its rather humble beginnings, it has grown to 3 offices, 84 owned facilities and 90 leased service facilities as of 2020. Saia is ranked among the top 10 LTL carriers in the U.S.

The company has a market cap of around $5 billion and its stock has a P/E ratio of 15 with an EPS of $12.63. For Q2 2022, its revenue was $746 million, up from $571 million last year. Its operating income was $146 million, an increase from $82 million last year, and its net income was $109 million versus $62 million last year. Its share price has increased more than 150% since its pandemic low, making it a great addition to your list of trucking stocks to invest in.

The Bottom Line on the Best Trucking Stocks

With continued delays in shipping and supply chain shocks, these trucking stocks could be a valuable addition to your portfolio. But, as always, it’s important to do your own research and due diligence before making any investment decisions. And remember this is just one of the many investment opportunities out there to be explored.

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Best Fintech Stocks to Buy Now https://investmentu.com/fintech-stocks/ Fri, 17 Dec 2021 22:02:57 +0000 https://investmentu.com/?p=92345 If you are looking to capitalize on the growth potential of fintech's, here are some of the best fintech stocks to buy. Check them out below.

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The term “fintech” stocks can refer to any company that integrates technology into some kind of financial service. Because the definition is so broad, it can mean anything from robo-advisors to online exchanges to payment processors.

Nevertheless, technology and finance are two sectors that are likely to continue their upward trajectory. Thus, the marriage of those two sectors leaves us with strong investment possibilities in a space that is still emerging.

If you are looking to capitalize on the growth potential of fintech’s, below are some of the best fintech stocks to consider buying.

Fintech stocks to buy now.

Best Fintech Stocks

Since you landed here, you already have some interest in fintech stocks. With that, let’s take a closer look at five of the best fintech stocks to buy.

No. 5 PayPal

Established in 1998 originally as Confinity, PayPal (Nasdaq: PYPL) was the original online payment processor. Its three co-founders included now-billionaire Peter Thiel and its business model initially involved developing security software for handheld devices. The company’s electronic payments system launched in 1999. That’s when we first saw the name PayPal. Since then, PayPal has become a Fortune 500 company with a ranking that puts it close to the top 100 by total revenue.

PayPal has done well as a company. But what about its stock? PYPL has a market cap of nearly $225 billion with a P/E ratio of 45.93 and an earnings per share (EPS) of 4.16. Its share price was under $90 in 2020 before soaring to over $300 in the summer of 2021. It has since cooled but remains more than double what it was in 2020. In addition, analysts consider this fintech stock a strong buy with a median price target nearly 50% higher than its current price.

No. 4 Block, Inc.

Square, which recently rebranded to Block (NYSE: SQ), is the company known for its square-shaped readers that magically turn devices like iPhones and iPads into fully functioning POS systems. One of the keys to the company’s success has undoubtedly been the fact that its card readers are free. It makes money via card processing fees and by selling items like its Square Stand and Square chip reader. As an online payment processor, Square has reaped the benefits of the increase in spending seen during the economic recovery.

Block has a market cap of over $77 billion. It does have a relatively high P/E ratio of 190 with an EPS of 1.00. Still, its share price is approximately five times what it was in mid-March, 2020. Analysts also consider this stock a strong buy with price targets around 50% of its current price. However, it’s worth noting that in the company’s most recent quarter, it posted a net income of just $84k. Nevertheless, its year-over-year (YOY) revenue was up nearly 27% with revenues of $3.84 billion, making it a great addition to your list of fintech stocks to buy. 

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Integer blandit, diam et fringilla semper, nulla dui suscipit urna, eget hendrerit quam ex rutrum tellus. Nam imperdiet, nibh nec mollis vulputate, felis ante posuere leo, at ultrices nulla neque vitae mi.Nunc ut lorem quis urna auctor ornare quis in sem. Donec sodales viverra ante, et scelerisque libero iaculis sit amet. Phasellus fermentum vitae tellus quis suscipit. Ut bibendum aliquet odio, a venenatis augue fermentum at. Nunc fringilla dui lorem, congue blandit ex egestas in. Vestibulum dapibus orci ut felis consequat euismod. Sed pretium, risus vel blandit porttitor, diam diam sodales dui, in lobortis lorem ex vitae est. Nullam ac venenatis massa. Integer blandit, diam et fringilla semper, nulla dui suscipit urna, eget hendrerit quam ex rutrum tellus. Nam imperdiet, nibh nec mollis vulputate, felis ante posuere leo, at ultrices nulla neque vitae mi.

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Special Dividend Stocks for Extra Income https://investmentu.com/special-dividend-stocks/ Fri, 17 Dec 2021 16:50:54 +0000 https://investmentu.com/?p=92319 Usually, special dividends are a one-time payment. But, not always, this list will take a look at special dividend stocks to watch.

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Dividends are often paid out on a per-share basis as a way to reward investors. Many companies issue a regular dividend–usually quarterly. This helps supplement the money investors are spending on shares while they wait to realize gains. Regular dividends are typically in the range of 1% to 5%. Special dividend stocks are different, though.

Some companies dealing in commodities and other established sectors pay out dividends regularly. Conversely, special dividends are non-regular dividends paid as a result of a special event or a year of unusually high earnings. These payments are usually much larger than quarterly dividends.

Special Dividend Stocks to Watch

In most cases, special dividends are a one-time payment, which means they might not be a reason for new investors to buy. However, there are some companies that have paid out special dividends year after year, and this list will take a look at some of those companies.

  • Costco Wholesale Corporation (Nasdaq: COST)
  • American Financial Group, Inc. (NYSE: AFG)
  • Wingstop, Inc. (Nasdaq: WING)
  • Old Republic International Corporation (NYSE: ORI)
  • Camping World Holdings, Inc. (NYSE: CWH)

Special dividend stocks to buy.

No. 5 Costco Wholesale Corporation

Many people love Costco for its free samples or cheap hot dogs, but there’s something else for investors to love about Costco. The wholesaler also delivers for its investors and has done so many times in the form of special dividends. In November 2020, the company announced a special cash dividend of $10 per share.

Although Costco has not issued a special dividend since the one in 2020, its cash balances are approaching pre-pandemic levels. It is expected that it may issue another special dividend soon.

No. 4 American Financial Group, Inc.

American Financial Group is a financial services holding company based in Cincinnati, Ohio. It primarily deals in insurance and investments through businesses such as Great American Insurance Group. It offers insurance products to individuals in the form of annuities, plus a variety of insurance products for businesses.

In late May 2022, AFG announced a special dividend of $8.00 to be paid out to investors. This is in addition to a $2.00 special dividend that was paid out with the regular Q1 dividend. It paid out dividends eight times in 2021 and fives times in 2020. In fact, it has paid out dividends more than four times per year every year since 2017. Its typical payment are more like $0.50, and its share price is around $140. So far, the two special dividends from this fiscal year make up around 7% of its current share price.

No. 3 Wingstop, Inc.

Wingstop is a large fast-food chain known for its wings. It has been around for more than 20 years and today, there are over 1,500 Wingstop locations globally. The company is able to keep costs low with relatively slim operations and a low-cost product, allowing it to expand rapidly. As a result, it has been paying it forward in the form of dividends to investors.

WING pays regular dividends to investors with a yield of 0.62%. However, the company has also paid special dividends that have bolstered its total dividend payments. In March 2022, it paid a $4.00 special dividend, and in late 2020 it paid a $5.14 special dividend. While it has had some shaky quarters, it has a new CEO and is still paying special dividends to its investors.

Special Dividend Stocks No. 2 Old Republic International Corporation

Old Republic International is a property insurance, title and deed company based in Chicago, Illinois. According to its website, it is one of the 50 largest shareholder-owned insurance businesses and is also a Fortune 500 company. Overall, it is one of the largest insurance companies in the country.

Old Republic (ORI) has been consistent with its dividends, too, paying four times per year. Its current dividend yield is over 4%. It typically pays a dividend between $0.195 and $0.23 per share, but it has also issued several special dividends. In December 2021, it paid a special dividend of $1.50 per share, and in January 2021 it paid $1 per share. It paid no special dividends in 2020, but it paid them in 2019 and 2018. These dividends are generous for a stock with a share price of around $25, making this a top special dividend stock.

Special Dividend Stocks No. 1 Camping World Holdings, Inc.

Camping World Holdings is the largest retailer of RVs; it also sells camping equipment, boating equipment, fishing gear and other related products. Between Camping World and Good Sam, which rents out RVs, there are locations all over the United States. The company is based in Lincolnshire, Illinois.

The company’s stock, CWH, also pays a generous dividend. In fact, its dividend yield is an impressive 9.3%

That is in part due to its relatively low share price; it currently trades for less than $30. However, CWH shares typically pay a quarterly dividend of around $0.50, and it has been paying more generous dividends lately. For instance, its last dividend payment, in March 2022, was $0.63 per share, and the next dividend payment is projected to be the same.

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