Friday, August 3, 2018

5G is coming to Houston. Here's why that's a big deal

Houston residents will be among the first in the country to access the internet at faster-than-ever speeds. At least that's the promise.

Verizon recently announced it will bring a broadband-like version of its 5G wireless technology to the city sometime this year. The technology, heralded as the next generation of internet speeds, will make the process of loading websites, downloading songs and streaming movies at least 10 times faster than 4G.

The carrier plans to bring the same type of fixed wireless 5G to Sacramento, California, and Los Angeles later this year and launch mobile 5G in select cities in 2019.

CNN's parent company AT&T (T), along with Sprint (S) and T-Mobile (TMUS), have also set their sights on 5G. AT&T says it's on track to debut a small mobile 5G wifi hotspot device that fits in the palm of your hand. The device, which can be placed in homes or cars and provide 5G to mobile phones, is expected to launch in 12 cities by the end of 2018.

While companies like Verizon are already experimenting with 5G, it likely won't replace 4G in the United States before 2020. But the efforts underway are laying the framework for a technology that could truly impact the way we access the internet in the future.

The slow rollout highlights one of the biggest challenges facing the technology: Smartphones and cellular devices don't yet support 5G.

On Friday, Motorola teased it will become the first company to launch a 5G-capable smartphone later this month. But there are caveats: The phone will only be able to upgrade to 5G with the help of an adapter you snap on the back and only works in cities where 5G has been rolled out. (Hint: No city has officially launched 5G yet.)

Meanwhile, Verizon's plan for Houston uses fixed wireless 5G, which works like broadband internet and devices must be connected to it within a certain range.

If successful, the introduction of 5G in Houston could radically change the way people access the internet. Dan Hays, an adviser at PricewaterhouseCoopers' consulting firm, said the rollout could be a game changer for Houston, which is home to more than 2.3 million people.

More people get service

Hays said greater access and availability is one of the biggest benefits of Verizon's fixed wireless launch.

"There are still large areas of the US, including in some cities, where you can't get broadband," Hays said. "This may bring broadband to people who have never had it because it's so much quicker to set up a fixed wireless 5G connection than it is to bury miles of wire and lines underground."

About 19 million Americans still don't have access to broadband internet. People in rural and impoverished areas are more likely to be without broadband.

Verizon has committed to installing the technology in five underserved and low-income neighborhoods in Houston as part of its launch. Sprint (S) CTO John Saw told CNNMoney that if the company's merger with T-Mobile (TMUS) is approved, it may have the resources to launch in those regions too.

More choice for customers

Residents will likely benefit from having more internet options. Cable operators, which currently deliver broadband, tend to get exclusive access to a city or area in exchange for providing and meeting certain standards of service.

Wireless companies such as Verizon and AT&T aren't bound by those restrictions, which means they can exist in the same areas and provide 5G as an alternative way to get online.

"I can only get one broadband supplier where I live and they can charge me whatever they want and customer service can be whatever they want," Hays said.

More chances to innovate

Houston and other cities with 5G could be an enticing area for people looking to run or start businesses. It's likely 5G will serve as the backbone of the so-called Internet of Things, the term for connecting devices like your car of coffee machine to the internet.

Houston's Mayor Sylvester Turner also sees the value in being at the forefront. "We expect 5G will be a game changer helping us usher in a new wave of progress and innovation," Turner said in a statement.

As other carriers expand and overlap coverage, cost will likely become competitive too. But it's unclear as of now what pricing will look like.

But one thing is certain: Getting 5G off the ground is no easy or cheap task. 5G travels over super high-frequency airwaves via tiny cell towers, which can be installed on existing telephone poles or on the sides of buildings. The receivers are so small and have to be so close together that outfitting 5G across the US is a Herculean endeavor. In fact, according to Barclays estimates, it could cost up to $300 billion to do so.

"All of the operators will get to all major cities eventually," Hays said. "It's just a matter of time."

Tuesday, July 31, 2018

Top 5 Insurance Stocks To Watch Right Now

tags:AIG,AON,PFG,WRB,PRU,

Zacks Investment Research upgraded shares of MakeMyTrip (NASDAQ:MMYT) from a hold rating to a buy rating in a research note released on Friday. They currently have $45.00 price target on the technology company’s stock.

According to Zacks, “MakeMyTrip Limited is an online travel service company which offers travel products and solutions in India and the United States. The Company’s services and products include air tickets, customized holiday packages, hotel booking, railway tickets, bus tickets, car hire and facilitating access to travel insurance. MakeMyTrip Limited is the parent company of MakeMyTrip (India) Private Limited and MakeMyTrip.com Inc. Through its primary website, www.makemytrip.com, and other technology-enhanced platforms, the Company provides access to all major domestic full-service and low-cost airlines operating in India, all major airlines operating to and from India, a wide selection of hotels in and outside India, Indian Railways and several major Indian bus operators. MakeMyTrip Limited is based in Gurgaon, India. “

Top 5 Insurance Stocks To Watch Right Now: American International Group Inc.(AIG)

Advisors' Opinion:
  • [By Stephan Byrd]

    Suntrust Banks Inc. boosted its position in shares of American International Group Inc (NYSE:AIG) by 12.4% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 36,736 shares of the insurance provider’s stock after purchasing an additional 4,048 shares during the period. Suntrust Banks Inc.’s holdings in American International Group were worth $1,998,000 at the end of the most recent reporting period.

  • [By Logan Wallace]

    Sentry Investment Management LLC lessened its holdings in American International Group (NYSE:AIG) by 8.6% during the first quarter, HoldingsChannel reports. The firm owned 64,968 shares of the insurance provider’s stock after selling 6,147 shares during the quarter. Sentry Investment Management LLC’s holdings in American International Group were worth $3,536,000 at the end of the most recent reporting period.

  • [By Max Byerly]

    These are some of the media stories that may have effected Accern’s rankings:

    Get American International Group alerts: AIG’s loss for European business worsens in 2017 (businessinsurance.com) $1.26 EPS Expected for American International Group (AIG) This Quarter (americanbankingnews.com) UBS: Buy AIG After Earnings Estimates ‘Bottom Out’ (finance.yahoo.com) American International Group (AIG) Stock Rating Upgraded by UBS (americanbankingnews.com) American International Group (AIG) Receives Average Recommendation of “Hold” from Analysts (americanbankingnews.com)

    American International Group traded up $0.36, hitting $55.15, during mid-day trading on Friday, MarketBeat.com reports. The stock had a trading volume of 9,821,608 shares, compared to its average volume of 6,828,715. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.27 and a quick ratio of 0.27. American International Group has a 1-year low of $49.57 and a 1-year high of $67.30. The firm has a market cap of $49.51 billion, a P/E ratio of 22.98, a PEG ratio of 1.01 and a beta of 1.24.

Top 5 Insurance Stocks To Watch Right Now: Aon Corporation(AON)

Advisors' Opinion:
  • [By Lisa Levin] Companies Reporting Before The Bell Celgene Corporation (NASDAQ: CELG) is projected to report quarterly earnings at $1.96 per share on revenue of $3.46 billion. Aon plc (NYSE: AON) is expected to report quarterly earnings at $2.8 per share on revenue of $2.93 billion. American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) is estimated to report quarterly earnings at $0.81 per share on revenue of $1.75 billion. Alibaba Group Holding Limited (NYSE: BABA) is expected to report quarterly earnings at $0.88 per share on revenue of $9.27 billion. LifePoint Health, Inc. (NASDAQ: LPNT) is projected to report quarterly earnings at $1.13 per share on revenue of $1.62 billion. V.F. Corporation (NYSE: VFC) is estimated to report quarterly earnings at $0.65 per share on revenue of $2.90 billion. Newell Brands Inc. (NYSE: NWL) is expected to report quarterly earnings at $0.26 per share on revenue of $3.05 billion. Titan International, Inc. (NYSE: TWI) is projected to report quarterly earnings at $0.04 per share on revenue of $407.27 million. Boise Cascade Company (NYSE: BCC) is expected to report quarterly earnings at $0.45 per share on revenue of $1.09 billion. Cheniere Energy, Inc. (NYSE: LNG) is estimated to report quarterly earnings at $0.39 per share on revenue of $1.59 billion. Cboe Global Markets, Inc. (NASDAQ: CBOE) is projected to report quarterly earnings at $1.24 per share on revenue of $308.05 million. ITT Inc. (NYSE: ITT) is estimated to report quarterly earnings at $0.73 per share on revenue of $683.96 million. Fred's, Inc. (NASDAQ: FRED) is expected to report quarterly loss at $0.19 per share on revenue of $551.00 million. Virtu Financial, Inc. (NASDAQ: VIRT) is projected to report quarterly earnings at $0.52 per share on revenue of $288.31 million. Cheniere Energy Partners, L.P. (NYSE: CQP) is expected to report quarterly earnings at $0.57 per share on revenue of $1.38 billion. Genesis Energy, L.P
  • [By Logan Wallace]

    CorVel (NASDAQ: CRVL) and AON (NYSE:AON) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

  • [By Max Byerly]

    State of Wisconsin Investment Board decreased its holdings in shares of Aon (NYSE:AON) by 9.2% in the 1st quarter, Holdings Channel reports. The fund owned 384,127 shares of the financial services provider’s stock after selling 38,942 shares during the quarter. State of Wisconsin Investment Board’s holdings in AON were worth $53,905,000 at the end of the most recent quarter.

  • [By Joseph Griffin]

    AON (NYSE:AON) had its price target hoisted by Citigroup from $160.00 to $165.00 in a report issued on Tuesday morning. They currently have a buy rating on the financial services provider’s stock.

Top 5 Insurance Stocks To Watch Right Now: Principal Financial Group Inc(PFG)

Advisors' Opinion:
  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Principal Financial Group (PFG)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By WWW.GURUFOCUS.COM]

    For the details of Stilwell Value LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Stilwell+Value+LLC

    These are the top 5 holdings of Stilwell Value LLCOFG Bancorp (OFG) - 1,614,868 shares, 14.1% of the total portfolio. Kingsway Financial Services Inc (KFS) - 3,780,889 shares, 12.63% of the total portfolio. HopFed Bancorp Inc (HFBC) - 627,128 shares, 7.62% of the total portfolio. Alcentra Capital Corp (ABDC) - 1,251,324 shares, 7.27% of the total portfolio. Shares added by 20.66%Sound Financial Bancorp Inc (SFBC) - 228,600 shares, 7.02% of th
  • [By Max Byerly]

    Shore Capital reissued their hold rating on shares of Provident Financial (LON:PFG) in a report issued on Thursday.

    PFG has been the subject of several other reports. Liberum Capital reissued a sell rating and set a GBX 483 ($6.48) price objective on shares of Provident Financial in a research note on Monday, February 26th. Peel Hunt reissued a hold rating and set a GBX 870 ($11.67) price objective on shares of Provident Financial in a research note on Tuesday, February 27th. JPMorgan Chase & Co. reduced their price objective on Provident Financial from GBX 1,100 ($14.76) to GBX 750 ($10.06) and set a neutral rating for the company in a research note on Thursday, May 10th. Barclays reissued an underweight rating and set a GBX 584 ($7.84) price objective on shares of Provident Financial in a research note on Wednesday, January 31st. Finally, Societe Generale lowered Provident Financial to a hold rating and set a GBX 1,050 ($14.09) price objective for the company. in a research note on Wednesday, February 28th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and two have assigned a buy rating to the company’s stock. Provident Financial presently has a consensus rating of Hold and a consensus price target of GBX 1,190.14 ($15.97).

  • [By Logan Wallace]

    ING Groep NV boosted its stake in Principal Financial Group Inc (NYSE:PFG) by 7.8% during the 1st quarter, HoldingsChannel.com reports. The institutional investor owned 27,524 shares of the financial services provider’s stock after purchasing an additional 1,991 shares during the period. ING Groep NV’s holdings in Principal Financial Group were worth $1,676,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

  • [By Shane Hupp]

    These are some of the news articles that may have impacted Accern’s scoring:

    Get Principal Financial Group alerts: Principal Financial Group (PFG) Approves New $300M Buyback (streetinsider.com) Principal Financial Group (PFG) Announces Share Repurchase Plan (americanbankingnews.com) Is Principal Large Cap Growth I Institutional (PLGIX) a Strong Mutual Fund Pick Right Now? (finance.yahoo.com) Principal Financial Group is Oversold (nasdaq.com) Principal Names New Chief Human Resources Officer (finance.yahoo.com)

    Several equities analysts have recently commented on PFG shares. Morgan Stanley decreased their target price on Principal Financial Group from $79.00 to $77.00 and set an “equal weight” rating on the stock in a research report on Thursday, April 5th. Wells Fargo reaffirmed a “market perform” rating and issued a $76.00 target price on shares of Principal Financial Group in a research report on Monday, January 8th. Credit Suisse Group started coverage on Principal Financial Group in a research report on Wednesday, April 25th. They issued a “neutral” rating and a $62.00 target price on the stock. Bank of America started coverage on Principal Financial Group in a research report on Monday, March 26th. They issued a “neutral” rating and a $65.00 target price on the stock. Finally, UBS started coverage on Principal Financial Group in a research report on Friday, March 2nd. They issued a “neutral” rating and a $69.00 target price on the stock. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company. Principal Financial Group currently has an average rating of “Hold” and an average price target of $71.18.

Top 5 Insurance Stocks To Watch Right Now: W.R. Berkley Corporation(WRB)

Advisors' Opinion:
  • [By Logan Wallace]

    W. R. Berkley (NYSE: WRB) and State Auto Financial (NASDAQ:STFC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on W. R. Berkley (WRB)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on W. R. Berkley (WRB)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Ethan Ryder]

    ValuEngine cut shares of W. R. Berkley (NYSE:WRB) from a buy rating to a hold rating in a report released on Monday morning.

    WRB has been the topic of a number of other research reports. Bank of America cut shares of W. R. Berkley from a neutral rating to an underperform rating and set a $74.00 target price on the stock. in a report on Thursday, June 14th. They noted that the move was a valuation call. Zacks Investment Research cut shares of W. R. Berkley from a buy rating to a hold rating in a report on Tuesday, February 20th. Boenning Scattergood restated a hold rating on shares of W. R. Berkley in a report on Wednesday, April 25th. Finally, Goldman Sachs Group started coverage on shares of W. R. Berkley in a report on Monday. They set a sell rating and a $74.00 target price on the stock. They noted that the move was a valuation call. Four analysts have rated the stock with a sell rating and eight have issued a hold rating to the stock. W. R. Berkley currently has a consensus rating of Hold and a consensus price target of $70.78.

  • [By Joseph Griffin]

    W. R. Berkley Corp (NYSE:WRB) has received a consensus rating of “Hold” from the eleven brokerages that are presently covering the stock, Marketbeat Ratings reports. Five analysts have rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $69.33.

Top 5 Insurance Stocks To Watch Right Now: Prudential Financial Inc.(PRU)

Advisors' Opinion:
  • [By Max Byerly]

    Flippin Bruce & Porter Inc. grew its holdings in shares of Prudential Financial (NYSE:PRU) by 2.3% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 61,363 shares of the financial services provider’s stock after acquiring an additional 1,391 shares during the period. Flippin Bruce & Porter Inc.’s holdings in Prudential Financial were worth $6,354,000 as of its most recent SEC filing.

  • [By Chuck Saletta]

    Prudential Financial (NYSE:PRU) takes such pride in its rock-solid financial condition that it uses an actual rock -- the Rock of Gibraltar�-- as its corporate symbol. Prudential Financial backs up that claim with a balance sheet that has more cash, cash equivalents, and short-term investments�than total debt on it. It also claims a debt-to-equity ratio around 0.6 and a current ratio around 1.0�, which are further signs of a solid financial condition.

  • [By Zacks]

    Well, given the growing demand for securitized mortgage deals, Barclays plans to package and sell these Irish loans over the next two months. The group of investors that has shown interest in buying residential mortgage backed securities includes M&G Investments, the investment management division of British insurer Prudential Plc (NYSE: PRU) and Pacific Investment Management Co. ("PIMCO").

  • [By Joseph Griffin]

    These are some of the headlines that may have effected Accern Sentiment Analysis’s analysis:

    Get Prudential Financial alerts: Prudential (PUK) Presents At 2018 Deutsche Bank Annual Global Financial Services Conference – Slideshow (seekingalpha.com) Leston Welsh joins Prudential Group Insurance as head of Disability and Absence Management (finance.yahoo.com) Contrasting Prudential Financial (PRU) & Old Mutual (ODMTY) (americanbankingnews.com) Prudential again accused with unauthorised money deduction (vir.com.vn) An Application for the Trademark ��MULLINTBG�� Has Been Filed by Prudential Insurance Company (insurancenewsnet.com)

    Prudential Financial traded down $5.05, hitting $94.97, during midday trading on Tuesday, MarketBeat Ratings reports. 2,919,216 shares of the company’s stock were exchanged, compared to its average volume of 2,144,103. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.35. The firm has a market cap of $42.01 billion, a PE ratio of 8.98, a P/E/G ratio of 0.97 and a beta of 1.52. Prudential Financial has a one year low of $94.51 and a one year high of $127.14.

  • [By Ethan Ryder]

    American Equity Investment Life (NYSE: AEL) and Prudential Financial (NYSE:PRU) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

  • [By Jason Hall, Chuck Saletta, and Reuben Gregg Brewer]

    But that doesn't mean you need to make risky bets to capture solid returns, either, and buying solid companies at reasonable prices can help create a margin of safety and improve your returns, while also decreasing your risk of permanent losses. Three stocks that meet these criteria are small healthcare real-estate specialist�Caretrust REIT Inc�(NASDAQ:CTRE), financial services giant�Prudential Financial Inc�(NYSE:PRU), and energy behemoth�ExxonMobil Corporation�(NYSE:XOM).�

Saturday, July 21, 2018

9 Impressive Dividend Stocks to Buy and Hold

Now is a good time to look at dividend stocks to buy and hold. While there’s no doubt that the market averages were on a roll going in 2018, that incredible momentum slowed a bit when January changed to February. The tax cuts in late December added a lot of fuel to stocks’ fire, but a market correction was lurking around the corner.

If the economy expands and the global economy stays in recovery mode, this could see stock indexes soar once again. Especially when you look to the big blue chips that dominate the averages.

The big firms are doing business outside the U.S., and the dollar is weakening as interest rates rise. As Treasury Secretary Steve Mnuchin observed in Davos recently, a weaker dollar is good for exports and the Trump administration is in favor of boosting exports.

But for all this good news, a changing market — with the potential for an inverted yield curve in interest rates, rising inflation and less consumer strength than anticipated — may bring on a correction.

That’s why now is a good time to buy some solid insurance while it’s cheap. That’s why I’ve come up with nine impressive dividend stocks to buy and hold. They have longevity and will weather any near-term storms.

[Editor’s Note: This article was originally published on Feb. 2, 2018, but it has been edited to reflect changes in the markets.]


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Impressive Dividend Stocks to Buy and Hold: Verizon (VZ) vz stock Source: Mike Mozart Via Flickr

Dividend: 59 cents, paid quarterly

Verizon (NYSE:VZ) is a blue-chip communications pick with a solid 4.65% dividend.

Whether it’s fiber optic cable, mobile communications or content delivered directly to its customers, Verizon is focused on maintaining its dominant position in the market. Recent deals on the content side show that VZ is very aware that how your subscribers get content is less valuable than what content they get.

There will certainly be competition in the space, which could mean customers come and go, but VZ has shored both its ‘cable’ end and its wireless side, so any cable cutters will still find value in sticking with VZ.

And the dividend is rock solid.


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Impressive Dividend Stocks to Buy and Hold: AES Corp (AES) Source: Shutterstock

Dividend: 13 cents quarterly

AES Corp (NYSE:AES) was a major player in the utility deregulation boom that swept through the markets in the 1990s. Think Enron, as both the bullish story and the cautionary tale.

AES has operations in the U.S., South America, Central America and the Caribbean. But it is one of those independent energy producers that doesn’t get a lot of press because it doesn’t fit into a tidy box.

AES remains a solid company, however, and delivers a 4% dividend. What’s more, emerging markets are starting a boom phase after their bottom. And with Brazil making a comeback — and AES having operations there — things are looking up for this stock on the growth side of equation.


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Impressive Dividend Stocks to Buy and Hold: Public Storage (PSA) Source: Mike Mozart Via Flickr

Dividend: $2.00, quarterly

Public Storage (NYSE:PSA) launched its first storage facility in 1972. That kind of longevity demonstrates that management knows how to build a business and sustain it, regardless of the economic environment.

With 142 million square feet of rentable space across the US and Europe, Public Storage is one of the largest self-storage firms in the world.

And it’s set up as real estate investment trust. That means investors are considered owners and net profits are distributed to the owners — by law — in the form of dividends. That makes PSA very stockholder friendly.

After a strong run in the past few years, investors are looking for the new sexy story and PSA stock has sold off in the past year. But there’s plenty of life left and its 3.6% dividend pays you for your patience.


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Impressive Dividend Stocks to Buy and Hold: Catchmark Timber (CTT)

Dividend: 13.5 cents quarterly

Catchmark Timber (NYSE:CTT) is a timber company that is organized as a real estate investment trust (REIT). That means you get a solid dividend and a company that is focused on its shareholders, because technically, its shareholders are considered owners.

Timber prices are directly correlated to housing demand. If housing demand rises, as it is now, timber prices rise and timber companies make more money.

It’s not surprise then, that CTT is up 9% in the past 12 months. That trend should continue. And this REIT is throwing off a respectable 4.2% dividend to boot.

CTT is a relatively small player in the space, which means its growth is leveraged when demand grows, like it is now.


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Impressive Dividend Stocks to Buy and Hold: Duke Energy (DUK) Duke Energy Corp (NYSE:DUK) Source: Shutterstock

Dividend: 92 cents quarterly

Duke Energy (NYSE:DUK) is a major energy utility in the US. That means it might not have the growth component that other sectors have, but it does have a lock on its service territory, which is predominantly North Carolina, but it has more than 7 million customers in six states overall.

What’s more, DUK has been a long-time proponent of renewable energy resources and has been adding wind and solar to its energy mix long before it was in vogue. It also has significant natural gas operations and subsidiaries.

With an impressive 4.6% dividend, DUK is very shareholder friendly and is a great foundation stock for any long-term investor.


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Impressive Dividend Stocks to Buy and Hold: Macy’s (M) Macy's M stock Source: Mike Mozart via Flickr

Dividend: 37.75 cents, quarterly

Macy’s Inc (NYSE:M) seems like an odd stock to recommend after its travails in the past couple of years, as it tries to pivot from the traditional department store model to a sleeker, more online retail model.

But M has been around since 1858. It has been through the Civil War and two World Wars. It has seen greater challenges than Amazon.com. And it has not only survived, but thrived.

While the market beat up this sector and then moved on, M has been retooling over the past year and even delivered some impressive holiday numbers. There’s still life in this company and it’s now a bargain.

Its 3.9% dividend will pay you for your patience.


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Impressive Dividend Stocks to Buy and Hold: Seagate Technology (STX) Source: Shutterstock

Dividend: 63 cents quarterly

Seagate (NASDAQ:STX), a hard drive maker, has been doing well in 2018, up 32% year-to-date. Some of that comes from its recent earnings numbers, having beaten Wall Street estimates across the board.

All this while still delivering a 4.4% dividend to shareholders.

But the real excitement here is STX’s involvement with Ripple, a company that has launched the cryptocurrency XRP. Ripple is also looking to use the blockchain technology at the heart of the cryptocurrency market to build a financial trading platform that would revolutionize how all investments are traded.

At this point no one can monetize STX involvement in either the currency or the trading platform, but we know there is significant interest in Ripple by STX.


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Impressive Dividend Stocks to Buy and Hold: Carlyle Group (CG) Source: Shutterstock

Dividend: 27 cents quarterly

The Carlyle Group (NASDAQ:CG) is a global asset management firm. Basically that’s another way to say it’s a private equity firm — it uses investors’ money to buy companies or invest in projects.

It currently has $174 billion in assets under management spread across more than 300 investment vehicles.

CG used to be privately held and was a firm that managed the assets of world leaders — from the Bush family to the Saudi royal family — discreetly and successfully for decades. It went public in 2012 and has had its ups and downs since then.

But right now, it’s in an upswing as the economy recovers. In the past 12 months, the stock is up 17% and it’s still delivering a healthy 4.5% dividend. And the good times have just begun.


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Impressive Dividend Stocks to Buy and Hold: Enterprise Products Partners (EPD) Enterprise Products Partners L.P. EPD stock Source: Bilfinger via Flickr

Dividend: 43 cents quarterly

Enterprise Products Partners (NYSE:EPD) is a midstream U.S. energy company.

Basically, that means it’s a pipeline company. And it’s one of the biggest.

This is a very good time to look at midstream energy companies. The midstream companies are the first ones back when the economy begins to recover.

Pipeline companies make money off the volume of the products shipped through its pipes, regardless of cost. EPD carries oil, natural gas, natural gas liquids, petrochemicals and refined products through its 50,000 miles of pipe.

As demand for energy increases, so will EPD revenues. EPD stock is still treading water, so its 5.93% dividend is a good way to get paid for your patience while this sector gains traction once again.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more o

Friday, July 13, 2018

These 146 REITs Have Big Upside From Here

&l;p&g;&l;img class=&q;dam-image shutterstock size-large wp-image-530311765&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/530311765/960x0.jpg?fit=scale&q; data-height=&q;730&q; data-width=&q;960&q;&g; Shutterstock

It&a;rsquo;s a good time to be a virtual landlord. REIT (real estate investment trust) dividends just got a tax break, their stock prices are kicking off a rally &l;i&g;and&l;/i&g; their yields are &l;i&g;still&l;/i&g; on the generous side.

Let&a;rsquo;s start with those yields, because that&a;rsquo;s why we buy REITs. These firms get a pass from Uncle Sam if they dish most of their profits to us investors as dividends. (This generosity, by the way, has helped REITs outperform the broader stock market for much of their history.)

Current yields are higher than usual today and generally, this means that REIT prices are too &l;i&g;low&l;/i&g; (and should be bought).

We&a;rsquo;re talking REITs today because the current rally appears to have legs. Two weeks &l;i&g;before&l;/i&g; the major bottom, &l;a href=&q;https://contrarianoutlook.com/these-4-reits-will-thrive-as-rates-rise/&q; target=&q;_blank&q;&g;I told readers to buy REITs&l;/a&g;. My reasoning was simple: REITs would soon &a;ldquo;decouple&a;rdquo; from the long bond. On January 25 I wrote:

&l;/p&g;&l;blockquote&g;&l;i&g;In the short run, the &a;ldquo;rates up, REITs down&a;rdquo; theory puts on quite the show. When the 10-Year Treasury&a;rsquo;s yield rises, REITs usually fall. And when its yield drops, REITs usually rally. This inverse relationship tends to hold up over multiple days, weeks and even months.&l;/i&g; &l;i&g;However the &a;ldquo;long view&a;rdquo; shows that many of these short-term moves are merely noise. It is possible for REITs and higher rates to coexist in profitable harmony&l;/i&g;&l;/blockquote&g;

Over the previous 25 months, REITs &l;i&g;had&l;/i&g; indeed moved down whenever rates moved up (and vice versa).

Then, a funny thing happened. REIT prices indeed &a;ldquo;decoupled&a;rdquo; from long-term rates (on February 8 to be specific). Their stocks started to rally while the long bond chopped sideways.

As regular readers know, I&a;rsquo;m a bit of a &a;ldquo;REIT addict.&a;rdquo; I constantly comb the sector for timely deals, looking for big yields and bargains. I like to watch the movers and shakers &a;ndash; the stocks heading up as well as down.

Earlier in the year, out of the 257 or so REITs I follow, only five had stocks in uptrends. &l;i&g;Five&l;/i&g; out of &l;i&g;257&l;/i&g; moving higher!

Today, I count 146 with positive momentum. What changed? The &a;ldquo;first-level&a;rdquo; investors &a;ndash; those who buy and sell on headlines and cheesy maxims &a;ndash; began to realize that REITs can (and often do) move higher in the face of rising interest rates.

Also Mr. Market began to express doubt in Mr. Jerome Powell&a;rsquo;s view of the financial world. While Fed Chair Powell says he needs to hike rates another 0.5% &l;i&g;this&l;/i&g; year, the &a;ldquo;long end&a;rdquo; of the rate curve &a;ndash; set by the free market &a;ndash; appears to be saying &a;ldquo;enough already.&a;rdquo; The 10-year Treasury sits exactly where it did five months ago, and that&a;rsquo;s been enough to kickoff a party for our favorite one-click landlords.

Disclosure: none

Thursday, July 12, 2018

Home prices are high. What could cool them down?

The housing market may be starting to benefit from the one thing that can loosen a long-running squeeze that has crimped sales and driven up prices: more homes.

The nation��s housing inventory increased 12.2 percent�in the second quarter, the biggest gain since early 2015, according to real estate research firm Trulia. Housing supplies were still down 5.3 percent�from a year ago, a dynamic that has continued to push up prices.

But that��s less than the double-digit annual declines that had prevailed since the second quarter of 2017 and the smallest drop since early 2017.

Thirty of the nation��s 100 largest metro areas saw their housing supplies increase on an annual basis last quarter. That��s up from just 13 early in the year and represents the largest share of big cities with rising inventories in more than three years.

��It could be the start of a shift in inventory,�� says Trulia data analyst Alexandra Lee, though she added it��s too early to tell for sure.

More: These 15 counties are most exposed to China's tariffs. Is yours on the list?

More: 3 reasons IRAs have edge over 401(k)s when it's time to tap your nest egg

More: Quick, make an offer! 5 cities where homes sold the fastest �� and the 5 slowest

She attributed the increase to an acceleration in new home construction as well as the willingness of more existing homeowners to put their houses on the market. Some, she says, want to benefit from big price gains on the assumption that housing prices may be peaking. And baby boomers who have stayed in their homes while delaying retirement may be hanging it up in greater numbers.

The Nashville, Tennessee, area led the nation in the second quarter with a 52 percent jump in homes on the market compared with�a year earlier, Trulia figures show. The median home price of $255,000 is still up 11.3 percent�annually, according to Zillow, an online real estate database firm.

But, ��there has been some more inventory,�� says John McClanahan, a broker for Village Real Estate in Nashville. As a result, he says:���Prices have been really stable the last few months. Things are a little slower. You��re not seeing as many multiple offers. There��s not as much of a frenzy.��

McClanahan cited a flurry of new home construction, with builders tearing down older single-family houses and putting up two new units on the same lot to reap a sufficient profit as land prices soar in the economically vibrant area. The units are being snapped up by millennial first-time homebuyers as well as retiring baby boomers who are downsizing, he says.

Other top metro areas with big inventory gains the past year include Salt Lake City (48.6 percent), Dallas (32.4 percent), Washington, D.C. (21.9 percent), and Little Rock, Arkansas�(13.4 percent), according to the Trulia data.

Meanwhile, home supplies also rose in six of the nation��s 10 most unaffordable cities where housing costs make up 42 percent�or more of monthly income, Trulia says. Inventory increased 1.1 percent�in New York City, 2.9 percent�in Los Angeles, 3.1 percent�in Miami and 22.1 percent�in San Diego. The gains could help moderate price increases in the months and years ahead if they're�sustained, Lee says.

CLOSE

The first permitted 3D-printed home debuted at SXSW in Austin and it has the ability to change the global housing crisis. Buzz60's Sean Dowling has more. Buzz60

Tuesday, May 29, 2018

Alberto Could Bring $1 Billion in Losses to U.S. Gulf Coast

Subtropical Storm Alberto weakened slightly as it neared Florida’s Panhandle, where it should come ashore Monday to spread heavy rains across the southern U.S., potentially causing more than $1 billion in economic losses.

Alberto was 50 miles (80 kilometers) south of Panama City, Florida, and moving north at 8 miles per hour, the National Hurricane Center in Miami said in an advisory at 11 a.m. New York time. The storm’s top winds fell to 60 mph and it’s expected to weaken further after it moves over land, gradually falling apart over the next 36 hours until it’s completely swallowed up by another weather system over Canada late this week.

Heavy rain has already fallen in southern states, and flood and flash-flood watches span the region, reaching as far north as North Carolina and Tennessee, the National Weather Service said. Parts of Florida, Georgia and Alabama could get from 4 to 8 inches (10 to 20 centimeters) with some areas receiving as much as a foot of rain. Governors in Florida, Mississippi and Alabama on Saturday declared states of emergency.

“From an economic standpoint most of the damage is already done, probably $600 or $700 million worth of lost economic activity due to rain, warnings and preparations,” said Chuck Watson, a disaster modeler at Enki Research in Savannah, Georgia. “Alberto might cause a couple hundred million in damage at worst when it does make landfall, and there is still flooding potential.”

Hardest hit will be small businesses that expected revenue from Memorial Day weekend tourists, Watson said.

#lazy-img-328081551:before{padding-top:66.63636363636364%;}

Subtropical Storm Alberto bearing down on Florida’s coastline Sunday. Credit: NASA

Source: National Oceanic and Atmospheric Administration

While Alberto nears the shore, the warning area has been scaled back from the Suwannee River back west to the Florida-Alabama state line. A storm surge watch has been posted from the river to Mexico Beach, Florida.

On Friday, Exxon Mobil Corp. pulled non-essential personnel from its Lena oil production platform and Royal Dutch Shell Plc shut in its Ram Powell hub. Chevron Corp. stopped oil production and evacuated personnel from its Blind Faith and Petronius platforms Saturday.

But most other energy companies are leaving offshore crews in place while they watch 2018’s first Atlantic storm. Alberto formed several days ahead of the June 1 official start of the six-month Atlantic hurricane season.

Storms in the Gulf are closely watched because 5 percent of U.S. natural gas and 17 percent of crude-oil production comes out of the region, according to the Energy Information Administration. Onshore areas along the coast also account for about 45 percent of U.S. refining capacity and 51 percent of gas processing.

— With assistance by Sheela Tobben, David Wethe, Amy Stillman, Kevin Crowley, and Ben Sharples

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Monday, May 28, 2018

$283.57 Million in Sales Expected for CIRCOR International, Inc. (CIR) This Quarter

Analysts forecast that CIRCOR International, Inc. (NYSE:CIR) will report $283.57 million in sales for the current quarter, according to Zacks Investment Research. Three analysts have issued estimates for CIRCOR International’s earnings. The highest sales estimate is $285.70 million and the lowest is $280.80 million. CIRCOR International reported sales of $151.23 million during the same quarter last year, which indicates a positive year over year growth rate of 87.5%. The company is expected to issue its next quarterly earnings results on Friday, July 27th.

According to Zacks, analysts expect that CIRCOR International will report full-year sales of $1.16 billion for the current fiscal year. For the next year, analysts expect that the business will report sales of $1.21 billion per share, with estimates ranging from $1.20 billion to $1.22 billion. Zacks’ sales averages are an average based on a survey of sell-side research firms that follow CIRCOR International.

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CIRCOR International (NYSE:CIR) last issued its earnings results on Tuesday, May 1st. The industrial products company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.08. The business had revenue of $275.58 million during the quarter, compared to analyst estimates of $270.56 million. CIRCOR International had a positive return on equity of 6.05% and a negative net margin of 1.32%. CIRCOR International’s revenue was up 89.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.32 earnings per share.

A number of research analysts recently commented on the company. ValuEngine upgraded CIRCOR International from a “strong sell” rating to a “sell” rating in a research note on Tuesday, May 8th. Zacks Investment Research lowered CIRCOR International from a “buy” rating to a “hold” rating in a research note on Thursday, May 3rd. SunTrust Banks restated a “buy” rating and issued a $56.00 target price on shares of CIRCOR International in a research note on Friday, March 2nd. Finally, Stifel Nicolaus reiterated a “buy” rating and issued a $54.00 price target (down from $61.00) on shares of CIRCOR International in a research report on Thursday, March 1st. Three research analysts have rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $57.50.

Shares of NYSE CIR traded down $1.01 during trading hours on Monday, reaching $48.36. The stock had a trading volume of 96,827 shares, compared to its average volume of 109,972. The company has a current ratio of 2.04, a quick ratio of 1.24 and a debt-to-equity ratio of 1.38. The firm has a market capitalization of $979.01 million, a price-to-earnings ratio of 28.28 and a beta of 1.70. CIRCOR International has a twelve month low of $39.84 and a twelve month high of $68.76.

A number of large investors have recently made changes to their positions in CIR. Miles Capital Inc. bought a new stake in shares of CIRCOR International during the first quarter worth $217,000. MetLife Investment Advisors LLC bought a new stake in shares of CIRCOR International during the fourth quarter worth $355,000. California Public Employees Retirement System grew its holdings in shares of CIRCOR International by 41.8% during the first quarter. California Public Employees Retirement System now owns 16,591 shares of the industrial products company’s stock worth $708,000 after purchasing an additional 4,891 shares during the last quarter. Pinebridge Investments L.P. grew its holdings in shares of CIRCOR International by 22.0% during the fourth quarter. Pinebridge Investments L.P. now owns 23,696 shares of the industrial products company’s stock worth $1,153,000 after purchasing an additional 4,281 shares during the last quarter. Finally, Arizona State Retirement System grew its holdings in shares of CIRCOR International by 224.8% during the fourth quarter. Arizona State Retirement System now owns 27,732 shares of the industrial products company’s stock worth $1,350,000 after purchasing an additional 19,194 shares during the last quarter. Hedge funds and other institutional investors own 89.87% of the company’s stock.

CIRCOR International Company Profile

CIRCOR International, Inc designs, manufactures, and markets engineered products and sub-systems worldwide. It operates through three segments: Energy, Advanced Flow Solutions, and Fluid Handling. The Energy segment offers a range of flow control solutions and services, including valves, such as engineered trunion and floating ball valves; gate, globe, and check valves; and butterfly valves, as well as delayed coking unheading devices, and fluid catalytic converter and isolation valves.

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Earnings History and Estimates for CIRCOR International (NYSE:CIR)

Sunday, May 27, 2018

Today In Cryptocurrency: UK Regulators Confirm Investigation of 24 Crypto Businesses; Crypto Publici

Cryptocurrencies finished another difficult week Friday, with most major cryptocurrencies trading lower by more than 1 percent. Here’s a look at some of the headlines that were moving the cryptocurrency market today — and which currencies were on the move.

Headlines

One day after the U.S. Justice Department said it has launched a probe into potential price manipulation in the bitcoin market, the U.K. Financial Conduct Authority said Friday that it is investigating 24 businesses that deal with cryptocurrencies. The FCA said it has opened up seven new investigations this year thanks to whistleblower reports of potential misconduct.

A cryptocurrency publicity stunt turned deadly this week when a Nepalese Sherpa accompanying a group of Mount Everest climbers organized by Ukranian social network ASKfm died during a climb. ASKfm sponsored a group of four people to climb Everest and bury a hard drive containing an estimated $50,000 in digital tokens. The plan was to encourage other Everest climbers to claim the crypto prize, which has a value based on an “estimate of their value once the pre-sale and ICO launch,” ASKfm said.

On Thursday, the Anti-Phishing Working Group released a new study that found $1.2 billion in cryptocurrency has been stolen since the beginning of 2017. Cryptocurrency bulls often cite the security of the blockchain verification process, but the reports found that cryptocurrency investors have still lost billions to scams, hackers and frauds.

Price Action

The Bitcoin Investment Trust GBTC (OTC: GBTC) traded at $12.22, down 0.1 percent.

Here’s how several top crypto investments fared Friday. Prices are as of 3:45 p.m. ET and reflect the previous 24 hours.

Bitcoin declined 2.1 percent to $7,420; Ethereum declined 1.7 percent to $582; Ripple declined 4.8 percent to 60 cents; Bitcoin Cash declined 4.6 percent to $1,006; EOS declined 0.7 percent to $12.11.

The three cryptocurrencies with at least $1-million market caps that have made the biggest gains over the past 24 hours are:

Photon: $2-million market cap, 87.4-percent gain. MUSE: $17.4-million market cap, 42.9-percent gain. Carboncoin: $1.6-million market cap, 39.2-percent gain.

The three cryptocurrencies hit hardest in the past 24 hours were:

BunnyCoin: $1.9-million market cap, 69-percent decline. Jiyo: $3.8-million market cap, 31.4-percent decline. LiteDoge: $1.2-million market cap, 31.1-percent decline.

Related Links:

Today In Cryptocurrency: Crypto Market Hits One-Month Low, India Mulls New Taxes

Riot Blockchain's 10-Q Sheds Light On Crypto Mining Operation

Saturday, May 26, 2018

Alberto Becomes First Named Storm, on Path to Drench U.S. South

Meet Alberto, the first named storm of 2018.

The sub-tropical storm off Mexico’s Yucatan Peninsula is expected to bring heavy rain to western Cuba and much of Florida early next week, the National Hurricane Center in Miami said Friday.

Alberto will probably have little impact on Gulf of Mexico offshore oil and gas platforms as it scrapes by the production region, headed toward landfall early next week bringing needed rain to crops in the Mississippi River valley. Sub-tropical storms lack the complete structure needed to become classical tropical storms.

“There’s not enough time for it to have a significant impact,” said Matt Rogers, president of the Commodity Weather Group LLC in Bethesda, Maryland. “It is short lived, making landfall Monday or early Tuesday. And it is going to be a low-end tropical storm.”

The Atlantic hurricane season officially starts June 1 and storms in the Gulf are closely watched because 5 percent of U.S. natural gas and 17 percent of crude oil production comes out of the region, according to the Energy Information Administration. In addition, onshore areas along the coastline account for about 45 percent of U.S. refining capacity and 51 percent of gas processing.

Models track the potential storm north across the Gulf, bringing it into the coastline somewhere between Mobile Bay in Alabama and the Florida Panhandle region, Steve Silver, a meteorologist with Radiant Solutions in Gaithersburg, Maryland, said by telephone. On that path it won’t have “a major impact.”

Heavy rain will fall across Alabama, Georgia and Florida, which could cause some flooding in cotton and peanut fields in the region, but overall the storm will probably help farmers to the north and west, said Dale Mohler, a meteorologist with AccuWeather Inc. in State College, Pennsylvania.

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Friday, May 25, 2018

How an Alexa speaker recorded and shared a private conversation

Alexa has many talents. Amazon's voice assistant can play music, set timers, order a pizza, and send recordings of private conversations to random people in its users' contact list.

An Amazon Echo user in Portland, Oregon, says she was shocked to learn her Echo had recorded a conversation with her husband without them knowing, then sent the audio file to one of his employees in Seattle.

"My husband and I would joke and say I'd bet these devices are listening to what we're saying," the Echo owner Danielle told local news station KIRO 7. The news station did not report her last name.

She said the incident happened two weeks ago when the employee called them to say she'd received a strange voice recording of them.

"The person on the other line said, 'unplug your Alexa devices right now,'" she told KIRO. "'You're being hacked.'"

The audio recording included the couple talking about hardwood floors. Danielle said they turned off their multiple Echo smart speakers, contacted Amazon and spoke to an Alexa engineer, who apologized multiple times.

Amazon confirmed the error in a statement and explained the improbable series of events that took place for it to happen. It wasn't a hack or a bug with the device, but a case of Alexa's always-listening microphones mishearing a series of words and mistakenly sending a voice message.

"Echo woke up due to a word in background conversation sounding like 'Alexa.' Then, the subsequent conversation was heard as a 'send message' request," Amazon said in a statement. "At which point, Alexa said out loud 'To whom?' At which point, the background conversation was interpreted as a name in the customers contact list. Alexa then asked out loud, '[contact name], right?' Alexa then interpreted background conversation as 'right'. As unlikely as this string of events is, we are evaluating options to make this case even less likely."

The Echo only confirms a contact name if there are multiple people in an address book with the same or similar sounding names.

It's unknown if the couple had the volume turned all the way down on their device or if they just didn't hear Alexa's multiple spoken replies during the message process. The colored ring on Echo speakers also lights up when the device is active.

While voice technology is increasingly popular, there are lingering concerns about privacy issues associated with having an internet-connected microphone in the home. Companies like Amazon and Google say their devices only begin recording when their microphones hear a trigger word or phrase, like "Alexa" or "Hey Google."

Thursday, May 24, 2018

Payouts to U.S. Power Generators Climb 83% in PJM Auction

Generators that provide capacity to the largest U.S. power grid are going to get paid a lot more for guaranteeing electricity when the market needs it.

Suppliers to PJM Interconnection LLC -- which serves more than 65 million people from Chicago to Washington -- will receive $140 a megawatt-day for the year starting in June 2021, up 83% from a year earlier, according to the results of a capacity auction earlier this month that were released Wednesday. Analyst estimates compiled by Bloomberg since April ranged from $75 to $118.

The auction provides an early metric on generators’ competitiveness in three years -- when America’s power sector is expected to feel the impact of massive changes currently under way. After years of cheap wholesale power prices and flat demand, nuclear and coal-fired plant operators have announced a rash of closures that some argue could imperil the reliability of the nation’s grid. This year’s auction reflects, in part, whether a new generation of gas-fired power plants and renewables will be able to make up for at least 7 gigawatts of possible closures of coal and nuclear sites in PJM by 2021.

Generators with plant concentrations in particular parts of the grid -- the Chicago area and portions of southeastern Pennsylvania and New Jersey -- are expected to be most affected by the auction because supplies there are tighter. They include utility giants Exelon Corp. and Public Service Enterprise Group Inc., according to Goldman Sachs Group Inc. analysts in a May 14 note.

The auction results showed that the capacity price for the Chicago-area zone, known as ComEd, was $195.55 compared with $188.12 a year earlier, and the price for the Pennsylvania and New Jersey zone, known as EMAAC, decreased to $165.73 percent to from $187.87 a year earlier.

Vistra Energy Corp. may also be affected because of its April acquisition of Dynegy Inc., according to analysts at Goldman Sachs and Morgan Stanley, who also pointed to NRG Energy Inc., American Electric Power Co. and closely held merchant-power generators Riverstone Holdings LLC, LS Power Group, ArcLight Capital Partners LLC and Energy Capital Partners LLC.

The U.S. Energy Department is weighing a March request from FirstEnergy Corp.’s competitive power unit -- now in bankruptcy -- for government aid to help keep money-losing nuclear and coal-fired power plants online.

PJM, based in Valley Forge, Pennsylvania, has been at the center of the shale gas revolution that’s displaced coal as the nation’s number one fuel source. It serves people in 13 states. The capacity auction held each spring is designed to secure future generating capacity. Costs are passed along to households and businesses on their utility bills.

(Updates with zones in fifth paragraph.) LISTEN TO ARTICLE 2:51 Share Share on Facebook Post to Twitter Send as an Email Print

Sunday, May 20, 2018

Has PayPal Met Its Match?

In the company's first quarter, PayPal Holdings Inc�(NASDAQ:PYPL) continued its winning ways with more solid results: Revenue grew to $3.69 billion, a 24% increase year over year, while non-GAAP earnings per share jumped to $0.57, a 29% increase year over year. This growth was fueled by a 15% increase in active customer accounts and a 25% increase in the number of payment transactions across its platforms. PayPal account holders are also using their accounts more than ever as transactions per active account rose to 34.7, an 8% increase year over year.

It's not hard to see why PayPal is enjoying such success as it emerges as one of the obvious winners in two huge trends: e-commerce and m-commerce, or mobile commerce. While it has always enjoyed success as an online platform, its dominance in mobile commerce is more of a recent phenomenon, largely due to the success of its One Touch feature. Unfortunately for PayPal investors, though, this success has not gone unnoticed, and others in the payment industry are looking to mimic the service's success.

Consumer browses the PayPal app on their smartphone.

PayPal's One Touch feature allows consumers to easily make online and mobile purchases by skipping the annoying checkout process. Image source: PayPal Holdings Inc.

PayPal's mobile triumphs

PayPal's stunning success in mobile can't be questioned. In the company's first-quarter conference call, CEO Dan Schulman said PayPal processed $49 billion in mobile payment volume -- payments originating from a mobile device -- good for a 52% increase year over year. Mobile payment volume now accounts for 37% of the company's total payment volume.

The company continues to credit One Touch for its mobile success. One Touch is a feature that allows account holders to register a device with PayPal and then enables them to stay logged onto PayPal for all future purchases on that same device. This means no more retrieving credit cards and punching in numbers and expiration dates and billing addresses when trying to make purchases on small smartphone screens. Speaking from personal experience, I now get upset when making an online purchase on a website that doesn't offer this feature.

One Touch's ease of use is delivering results. A new comScore study�showed that PayPal checkout conversions had an 88.7% success rate, compared to the average digital wallet's 55.3% sales conversion rate. Sales conversions are defined as how likely consumers are to finalize a purchase once items have been placed in an online shopping cart. Among the consumers who have tried One Touch, 91% have given it a rating of "Very good" or "Excellent"; 99% gave it a rating of "Good" or better. That kind of customer satisfaction is hard to beat.

It is no wonder, then, that 92 million consumers and 8.6 million merchants, up 74% and 72% year over year, respectively, have now opted into the program.�That's phenomenal! Yet, it is this very success that has attracted competition from some of the payments industry's biggest players.

The credit card companies strike back

For years, the major credit card companies -- American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), Mastercard Inc (NYSE:MA), and Visa Inc (NYSE:V) -- have supported their own digital wallets with varying degrees of success. The problem is, none of them meaningfully appealed to the average consumer. After all, in my own physical wallet, I have one American Express card, one Mastercard, and one Visa. I have no desire to opt into three individual digital wallets to conveniently use the three cards when making online purchases, especially when PayPal's platform allows me to enter all of my credit cards, across banks and brands, into its own platform.

That is why all four major credit card companies have partnered to create a new e-commerce checkout standard, the goal of which is to rid the need to enter cumbersome data, such as lengthy credit card numbers when making online purchases. In Visa's first-quarter conference call, CEO Al Kelly described the effort:

Our vision is to create a consistent and secure digital shopping experience across browsers and devices that largely eliminates the need to enter card account numbers and passwords. Online shopping should be as simple as it is in the physical world, making the checkout process easy, with a single pay button. We aim to declutter the checkout page, to streamline the checkout process.�

Mastercard CEO Ajay Banga said in his company's conference call that the effort is "transformative for the industry as a whole, for the ecosystem." When asked for a timeline, Banga said you might begin to see the first fruits of this effort by the end of the year but to expect to see a "real push" by the beginning of next year.

Destination unknown

It's still not entirely obvious what this new standard will look like, but if it removes friction from the e-commerce process by eliminating the need for consumers to enter lots of information, it sounds an awful lot like PayPal's One Touch feature. While the credit card companies benefit from PayPal's One Touch -- after all, PayPal's platform is just another way to access the payment networks the credit card companies offer -- if they have a chance to take out another middleman in the process, namely PayPal, they will jump at the chance.

Will the credit card companies succeed? In a sense, I believe they will. Any effort to make facilitating online transactions easier and simpler will probably benefit consumers and vendors alike and experience major user growth. I am not entirely convinced, though, that this means PayPal will fail. For starters, the One Touch platform already has significant growth momentum and a budding network effect. Giving One Touch another year to grow virtually unchallenged will only help it solidify its place in the market.

E-commerce is big enough for more than one winner

In fact, this scenario reminds me of when Zelle, the major peer-to-peer (P2P) platform jointly supported by most major banks and financial institutions, first launched. Many wondered at the time if the new competition would derail PayPal's own P2P efforts. While Zelle has already been a success, PayPal's P2P payment volume continues to grow at a phenomenal rate. In the first quarter, P2P payment volume rose 50% year over year across all of the company's platforms to $30 billion.

Much like the P2P payment space, the online market place is enormous -- and growing. There is ample room for more than one digital payment winner. Since being spun off from eBay�in the summer of 2015, the digital payment platform has returned 115% to investors, walloping the S&P 500 index's returns of about 32% over the same time period.�While competition continues to emerge, eager to copy PayPal's success, I foresee more market-beating returns in PayPal investors' future. After all, imitation is the sincerest form of flattery.