Category: Where to Invest

Where to invest is the most common question when someone decides to enter the markets. It doesn’t matter what the market is. It could be a stock market or Forex, or cryptocurrency market. The question will always be the same: Where to invest.
Traders-Paradise aims to give you some clues, to give you some hints of where to invest in.
The possibilities are enormous and if you want to make a profit or secure your future, investing is the most profitable solution. In turn, you’ll enjoy knowing that you made a better choice than savings can ever be. Moreover, you could earn a lot by investing a little money.

Here you will find great articles about new technologies, investment opportunities, all with suggestions.

The main goal that Traders-Paradise has is to show you how investing process can be easy and profitable. If you want to get more knowledge about investing, this place is top for you.Ā Traders-Paradise knows that investing may sound strange and difficult. But, if you have any doubts about investing this is the place where you can find all answers.

The website Traders-Paradise will show you where should you start and how to begin your investing journey. You may read different financial websites but this one is unique due to its true fact-checking, honesty, clear, serious, and comprehensive observations on a given subject. You’ll have a true and detailed picture of the world of investing. That is a common goal for both you and Traders-Paradise’s team.

We wish you profitable investing.

  • Revance Therapeutics – A Wrinkle-Causing Year

    Revance Therapeutics – A Wrinkle-Causing Year

    Revance Therapeutics - A Wrinkle-Causing YearThe company is a biotech pioneer establishing a new category of long-lasting neuromodulators.
    The Revance Therapeutics stock can be a good addition to the investment portfolioĀ 

    by Guy Avtalyon

    Wednesday was a rough day for shares of Revance Therapeutics (NASDAQ: RVNC). Investors were surprised by lowered the biotech stock for 16.4%Ā  on Wednesday and traded at $16.61.

    Only a few days ago, or the day before, the shares had been rising. But the company submitted an application to the FDA for DAXI in November. On Monday, shares rose over $20 per share until the end of Tuesday’s session. On Wednesday it was announced $17 per share.Ā 

     

    What happened with DAXI?

    For a long time, DAXI is a neurotoxin, but better than Botox, a global favorite. Revance Therapeutics has proof that it works better. Botox sales have risen to $2.7 billion per year and the producer AbbVie has a lot of reasons to be satisfied.Ā 

    But let’s go back to Revance

    FDA’s evaluation of DAXI could take months and we still don’t know if and when it will start. Revance Therapeutics’ partner Mylan announced the possibility to fund late-stage development of DAXI until April 30, 2020. What if FDA doesn’t start its review until then? You see, despite a published good result of DAXI and great expectations for selling it, one paper can disappoint investors. Yes, it is an important paper and a lot of things depend on it. For example, the future of Revance Therapeutics and its partnership with Mylan.

    If Mylan supports DAXI and gives Revance a two-digit percentage on sales, it could deliver a great return.Ā 

    On an investment of $10.000 in less than 2 months, you may have a nice return of $1.047 if you set your stop-loss at 19,25% level from the current price and take-profit at 40,25% level. But once again check yourself.

    Revance Therapeutics had the problematic announcementĀ 

    Revance Therapeutics, Inc. is a biotech company. It develops next-generation neurotoxins for treating aesthetic and therapeutic conditions. On December 4, it announced the pricing of an underwritten public offering of 6,500,000 shares of its common stock at a price of $17.00 per share.Ā 

    Revance has allowed the underwriters a 30-day option to buy up to 975.000 additional shares. The gross incomes from the offering are expected to be approximately $110.5 million. The offering is supposed to close about December 6, 2019. Revance Therapeutics plans to use this net profit of common stock to proceed to fund the commercialization of DAXI. The additional income will spend mostly on research and development.

    Revance Therapeutics

    Revance is fusing new science with the entrepreneurial vision of Silicon Valley. It is a modern biotech company with an innovative approach to aesthetic and therapeutic treatments.

    The company stated on its website:
    ā€œOur lead investigational product, DaxibotulinumtoxinA for Injection (DAXI), combines a proprietary stabilizing peptide excipient with a highly purified botulinum toxin that does not contain human or animal-based components.ā€

    It has been completed a Phase 3 program for DAXI in grimace lines. It showed fantastic efficiency and duration, and the company is seeking FDA approval.
    The company is focused on developing products and treatments in dermatology and aesthetics. Its products are RT001, botulinum toxin type A (BoNT-A) for cosmetic and dermatologic treatments. The previous name of the company was Essentia Biosystems, Inc. Under the name Revance Therapeutics, Inc. it is founded in 2002 with headquarters in Mountain View, California.

    As Traders Paradise can conclude the stock price of Revance Therapeutics can easily hit at least $18 in the next 10 days.

    At the moment of writing this article, it is December 05, Thursday, the current price of RVNC stock is $16.840 which is a bit more than yesterday. This stock had a declining tendency for the past 12 months. Biotech stocks are really tricky. But Traders Paradise thinks the stock price could rise significantly in the next 2 months. Over the one year, the price could be almost doubled. Hence, this is a strong BUY stock.

  • Biotech Stocks Are A Good Investment

    Biotech Stocks Are A Good Investment

    Biotech Stocks Are A Good Investment
    The biotech companies have strong earnings growth
    The Nasdaq Biotech Index (NBI) has slightly outpaced the S&P 500 over the past 12 months.

    Biotech stocks are the most impressive, exciting and, at the same time, one of the trickiest assets of the stock market. Biotech firms use technological methods based on science to produce products. The majority of biotech companies are focused on clinical research and the development of new medicines.Ā 

    But the whole industry has a lot of different purposes, the drugs are just a part of that. You can find biotech stocks on genetic experimentation, food modifications, health care, almost everywhere. One thing is common for every single producer: they have to go through a harsh, expensive and intensive experimental process before getting approval for the market.

    The biotech companies have strong earnings growthĀ 

    Ā Discovering the best biotech firms to invest in can be difficult. Laboratory ideas don’t always come to success and frequently biotech stocks are subject to strict regulations and rules.

    What you have to keep in mind is earnings growth. Biotech stocks are giving exactly that. If you are looking for great rewards, the biotech stocks are for you. One thing is important to be noticed here: these stocks carry a big risk too.

    Biotech stocks have great potential

    Well, there is an explanation of why that is. Every company needs time to develop its business, operations, presence in the market. Biotech companies frequently depend on the success of several trials of their products. During that phase, its stock isn’t expensive. Contrary, it can be very cheap. When the company gets approval for a drug or some positive news about testing comes, the stock price can skyrocket. Refusals or bans, though, can cause a disaster. So, for normal investors, it can be difficult to gauge how the testing of some drugs or anything from the field of the biotech industry will end. Well, here is one suggestion. Stay tuned on what the analysts who are well informed in the biotech industry are saying. If you see a stock that is frequently surrounded by bulls, it is a sign that something worth is nearby.Ā 

    Recognize your biotech stock better than anyone

    We will show one example of how to do so.

    Axsome Therapeutics is developing new drugs for the treatment of CNS disorders. Yes, it is clinical-testing stage and biotech stocks can be uncertain for investors. But this stock is remarkably fit for any investor with an aggressive approach to investment.

    AXSM stock has increased over 1.200% in this year. The investors are excited about the upcoming clinical study results. Axsome Therapeutics is in a late-stage study for its AXS-05. It is innovative and important in treating a depressive disorder, so-called MDD. The company is expecting results from another study, a drug for treating treatment-resistant depression, by the end of the first quarter in 2020. Also, the company expects positive results from a study of AXS-05 for Alzheimerā€™s disease in the first six months of 2020. And stock market analysts are predicting a huge revenue for the company and the shareholders. So, the hint that some biotech stock is a good investment is coming from the news.

    How to pick the best biotech stocks

    Over the past year, the Nasdaq Biotech Index (NBI) has kept up with the market.
    This year has been a hard ride for everyone. But the biotech sector, with its large firms, is definitely catching its pace. The index is rising. We were witnesses of interesting mergers during the past several years that starting to be profitable. Some new technologies are starting to gain excellent results which boosts hope for many patients. The cost of their tests is enormous, it is around $2 billion approximately. Also, it takes almost 10 years until some drug gets permission for distribution and human usage.
    It sounds like a lot of responsibility. Moreover, producers need to form a strong base for future growth.

    If you are focused on biotech stocks you should find biotech companies that are driving cutting-edge therapies. The brands that are well-positioned provide big premiums.

    Traders-Paradise recently wrote about one of them, but stay tuned, there will be more.

  • Axsome Therapeutics (AXSM) Is A Good Investment

    Axsome Therapeutics (AXSM) Is A Good Investment

    Axsome Therapeutics (AXSM) Is A Good InvestmentAxsome Therapeutics gained 1.70% in the last trading day ( Friday, Nov 29), increasing from $38.71 to $ 39.37. Will the company be able to continue growing?

    By Guy Avtalyon

    Axsome Therapeutics is developing innovative therapies for the treatment of CNS disorders. Yes, clinical-stage biotech stocks can be a risky suggestion for investors. Well, at the same time this stock is extremely suitable for any dynamic investors. If you prefer an aggressive approach to your investment this stock deserves your attention.

    Axsome Therapeutics (AXSM) has jumped over 1.200% in this year. The investors are awaiting the biotech’s upcoming clinical study results excited. Well, the company is in a late-stage study for its AXS-05. It is innovative and important in treating a depressive disorder, so-called MDD to the end of the year. The company is awaiting results from another study, a drug for treating treatment-resistant depression and it will be published to the end of the first quarter in 2020. Also, Axsome Therapeutics expects to present excellent results from a study of AXS-05 for Alzheimer’s disease in the first six months of 2020.Ā 

    To the end of this year, the company is expected to present the results from a late-stage study of AXS-07 in treating migraine and of AXS-12 in treating narcolepsy. Analysts estimate AXS-05 could obtain annual sales of more than $1 billion when approved.Ā 

    The main problem is that Axsome Therapeutics’ results could be failed like it is with so many drugs.
    But if they get a good result this stock will be high rocketed.Ā 

    The current price is $39.37 (Nov 29).Ā This small-cap stock in the S&P 500 had the greatest total return over the past 12 months. It is 959.6%

     

    Why invest in Axsome Therapeutics

    Axsome Therapeutics, Inc can be a profitable investment option for investors wanting good returns. Axsome Therapeutics, Inc quote is $39.370 on December 2. This stock can provide more than 300% of revenue after 5 years since it is expected the price to rise to $160 in the next year.

    Axsome Therapeutics has a median target of $46.50, where a high estimate of $53.00 and a low estimate of $25.00. The median estimate represents a +18.11% jump from the current price. The investment analysts’ suggestion is to buy this stock.Ā 

    Axsome Therapeutics ABOUT

    The company’s market cap is $1.36B. Axsome Therapeutics reported Q3 2019 financial results on Nov 7, 2019.

    Axsome Therapeutics is a clinical-stage biopharmaceutical company that develops innovative treatments for CNS disorders, especially for those with limited treatment possibilities. Axsomeā€™s center CNS product portfolio covers four clinical-stage products, AXS-05, AXS-07, AXS-09, and AXS-12. AXS-05 is in a phase 3 test in treatment-resistant depression, the same as MDD, and a Phase 2/3 trial in difficulties connected with Alzheimerā€™s disease. AXS-05 is also being developed for smoking end therapy. AXS-07 is in two Phase 3 trials for the treatment of migraine. AXS-12 is in a Phase 2 trial in narcolepsy.

    AXS-05, AXS-07, AXS-09, and AXS-12 are drug products not approved by the FDA. For more specific information, you have to visit the companyā€™s website. The Company may occasionally disseminate material, nonpublic information on the company website.

    Is AXSM a good investment?

    This company’s liquidity data is interesting: its Quick Ratio is 1.41 and its Current Ratio is 1.41. This shows a good ratio between its short-term liquid assets and its short-term liabilities. So we can easily conclude it is a less risky investment. This stockā€™s RSI score is at 50.78, which means that the stock is not oversold or overbought.
    The important clinical wins could place this company on the route to produce greater gains. Hence, we think it is a good investment.

     

  • Cannabis Stocks Are Not All Equal For FDA

    Cannabis Stocks Are Not All Equal For FDA

    Cannabis Stocks Are Not All Equal For FDA
    FDA sent numerous warnings about the CBD, substance found in cannabis.
    The stock prices of important cannabis stocks are dropping on a new warning from the FDA.

    By Guy Avtalyon

    Cannabis stocks are under attack. On Tuesday the US Food and Drug Administration (FDA) published new guidance on CBD. FDA notified that CBD can cause liver damage and also, some other injuries might be caused by using CBD.

    This information caused blast to the medical cannabis producers especially among those publicly listed on markets. Those companies have plans, they are investing in development, researching, and have licenses. We are talking about Canadian producers and their investors that were looking for the area for selling cannabis products and the US seemed to be that one. And now FDA issued a statement that their products are not safe for humans. Okay, even if it is true, how FDA can explain that GW Pharmaceutical’s CBD products are safe. This isn’t an attack on GW Pharmaceutical, it’s contrary, why other companies are forbidden to make health claims for its products use.Ā 

    The FDA announced late Monday it is pointing on 15 private companies that are illegally selling products with CBD.
    The regulator said, “there is very limited available information about CBD, including about its effects on the body.”

    What is CBD?

    CBD is a non-intoxicating cannabis compound but it lives in regulations’ vacuum. FDA has approved GW Pharmaceuticalā€™s GWPH drug that contains CBD, a drug for the treatment of childhood epilepsy but, FDA told the other producers that they have no permission to include this ingredient to food or drinks. The reasons are already mentioned.

    ā€œNot so fast,ā€ wrote MKM analyst Bill Kirk. ā€œThe FDAā€™s statement includes some balloon-bursting language,ā€ MarketWatch reported.

    Cannabis stocks were crashed again on Tuesday. That was the signal for analysts to make new estimations and to update the previous.

    Cannabis legalization is slow both in Canada and the US. That causes the black market to grow, while the legal companies are struggling to increase revenue and become profitable. Some of them had to cut selling, cancel the agreements, and save the cash for the following days in expectation for the issue to be solved.Ā 

    But investors have different sentiment and the stock prices of these companies are dropping.

    FDA influences the price of cannabis stocks

    The FDA’s update is in line with a note from the regulator’s former commissioner, Scott Gottlieb. He tweeted: “FDAā€™s actions on CBD show any available pathway ā€“ FDA issuing a regulation, new dietary ingredient notification for supplements, or a food additive petition for human or pet food ā€“ will require extensive studies and industry data to address serious safety concerns identified by FDA.”

    Extensive studies? Okay. Is there anything that they are working on? If yes, tell them to hurry up, the health benefit is in question. Tell them to have in mind a relief of pain and mental suffering. How about that?
    And, what they were doing for all the time? Haven’t yet find anything about cannabis? So many studies are already done.Ā 

    The most important cannabis stocks trade in CBD products. Some of them were failing in trading after the FDA’s announcement. Canopy Growth fell by a bit more than 1%, and Tilray was falling by 3%. But they are connected to the section. The worse came for Charlotte’s Web which stock was down by almost 8% and we are speaking about the leader in the CBD market.Ā 

    One stock was especially successful on that day. GW Pharmaceuticals was up.Ā 

    Cannabis Stocks Are Not All Equal For FDA
    (The image was taken on Nov 27.)

    Guess, it has FDA approval for selling the CBD products. GW Pharmaceuticals is a unique one. Yes, their stock price was only slightly up, if the rise of 1.62% is slight. But still.
    The FDA said the next step is to make a framework to allow companies that are producing CBD-based goods to deliver them to the market. Oh, yes, they have to wait for clinical trials. Only after that, the market will be opened to them.
    Until then, investors will sell in panic cannabis stocks or hold them till the better times.

     

  • Target Corporation The Hot Stock In The Market

    Target Corporation The Hot Stock In The Market

    Target Corporation The Hot Stock In The Market
    Target Corporation’s market capitalization is $64.11B with the total outstanding Shares of 179.
    The company has an EPS growth of 8.06% for the coming year.

    By Guy Avtalyon

    Target Corporation (NYSE: TGT) has made excellent moves in the late years. They developed a lot of benefits to customers. Besides remodeling their stores, they added same-day fulfillments, in-store orders for goods, and delivery through Shipt and Drive Up. The result was that the TGT stock price rose almost twice in 2019.

    The best of all, the holidays are coming and it looks that Target is prepared for an extra rise in sales. Target Corporation has added 50 million paid hours and has increased the number of employees, all of this with the expectation that the sales will grow over the holidays. To make a better offer to customers, the company added 10.000 new toys, including Disney’s products and numerous cheap gifts that you have to pay less than $15. Moreover, they made a deal with Toys R Us to improve online sales.Ā 

    So, Target looks prepared for Black Friday and holiday shopping season.

    TGT price was $126.89 yesterday (Nov 26) and marked an increase of 1.36% or $1.70.

    Investors were fascinated with Target Corporation

    Target has almost doubled its market value this year. Its quarterly reports fascinated investors. Over a third-quarter, Target rose its comparable sales by 4.5%. That drives the stock price to the sky.

    The company’s digital comparable sales increased by 31% in Q3. The great contribution came from Its same-day fulfillment services. That should provide a Target to have strong traffic in the fourth quarter.

    It is possible for Target’s earnings to go up to 10%.Ā Ā 

    If you want to trade TGT stock Traders Paradise tool shows that you can set up stop-loss atĀ  -2% and take-profit level at +1.75%, which will give you a nice return of $74,78 in less than two days on your investment of $10.000. But it is better if you check it on your by your own.

     

    The future ofĀ  TGT stock

    We at Traders-Paradise think Target Corporation stock is a good long-term investment.
    If you are looking for stocks with good returns, Target Corporation can be a profitable investment option. TGT is quoted at $126.89 today (2019-11-27).
    Based on historical data, but more on our analysis,Ā  investors may expect an increase in TGT stock price after five years it can easily reachĀ  $207 with revenue of more than 60%. If you invest $10.000 in this stock today after five years your investment could be over $16.000. The analysts’ recommendation is a strong BUY for this stock. This year Target is sixth-best performing stock in the S&P 500 index.

    About Target Corporation

    ā€œExpect more. Pay, less.ā€ This is the company’s motto from the early days. Target Corporation is founded by George D. Dayton, a New York businessman who’s first interest was the banking and real estate. He started this business on Nicollet Avenue, Minneapolis by opening the Dayton Dry Goods Company, today is known as Target Corporation. Dayton was head of the company until he died in 1938. Later, his son and grandsons developed the company into a national retailer.

    The first Target store started on May 1, 1962. It was a branch of theĀ  Daytonā€™s department store offering ā€œa new kind of mass-market discount store that caters to value-oriented shoppers seeking a higher-quality experience.ā€

    Its main rival is Walmart with prices hard to beat, and instead of that Target appeared as ā€œcheap chicā€ by recruiting well-known designers like Michael Graves, Tracy Reese, or Lilly Pulitzer. This great tactic has made Target retail with richer customers than Walmartā€™s. Honestly, even the wealthiest Americans like to purchase at Target. Even the people with a net worth above $5 million are shopping there.

     

  • Levi Strauss On The Market Again

    Levi Strauss On The Market Again

    Levi Strauss On The Market Again
    Levi Strauss & Co. trades on the NYSE under the ticker symbol LEVI.
    This famous brand promises to be a good investment

    By Guy Avtalyon

    Levi Strauss is riding again.
    We are sure you have several of Levi’s products. When say Levi’s you mean eternity. Levi’s jeans is always IN. This denim cloth producer went public in March this year. The jeans on the trading floor. Sounds good even if it didn’t change the dress-code there. Actually, that decision was the second appearance of Levi’s on the stock market.Ā 

    Firstly, the company was listed in the 1970s. But 15 years later, the company was taken private. Descendants of Strauss, well-known the Haas family bought it out. In March this year, that decision was changed and Levi’s is listed again on the NYSE under the ticker symbol LEVI. Levi’s started trading publicly for the second time in its 165-year history.

    At that time, the shares were priced at $17 and grew 32% in the first trading day. On the closing bell, the price was $22.41 and the valuation was over $8.5 billion.

    The LEVI price history

    The LEVI price history isn’t long but we can see that it had a few good trading weeks after went public. The price dropped in August and was traded at about $16. In October, the price increased to almost $20 but dropped again at $17 and stabilized in that area.

     

    On November 21 the LEVY was traded at $16.57 which was an increase of 0,20% from the previous day.

     

    The experts’ forecast for Levi Strauss & Co.’s median target at $23.50, with the highest price at $28.00 and the lowest at $18.00. That would be a 41.82% rise from the current price of $16.57. Their estimation shows a buy signal for Levi Strauss & Co. stock.

    The forward P/E ratio is 15.49 and P/E growth is 3.79, the dividend yield is 3.62%.

    Levi Strauss & Co. posted its quarterly earnings report on October 8th. The company reported $0.31EPS for the quarter, beating analysts’ estimates of $0.27. Levi Strauss & Co. earned $1.45 million during the quarter.Ā  The company had a return on equity of 37.44% and a net margin of 6.85%. The revenue was up 4.3% related to the same quarter in the previous year. Levi Strauss & Co. issued its revenue guidance of $5.882-5.909 billion.

    Selling of Levi Strauss & Co. stock

    The company’s main shareholder Walter J. Haas sold 73,845 shares on Wednesday, November 20th at an average price of $16.53, for $1,220,657.85.
    Previously, on November 13th, Walter J. Haas sold 37,290 shares of the company at an average price of $16.96, forĀ  $632,438.40.
    Two days earlier, on November 11th, Walter J. Haas sold 22,321 shares of stock at an average price of $17.06, for $380,796.26.
    On November 8th, Walter J. Haas sold 50,749 shares at an average price of $17.10, for $867,807.90.

    Hedge funds have new holding positions in the Levi’s

    Commerzbank Aktiengesellschaft FI got a new position in Levi Strauss & Co. at approximately $253,000.
    Acadian Asset Management LLC took a new position at around $174,000.
    Parallel Advisors LLC took a new position at approximately $96,000.
    Aperio Group LLC took a new position at around $62,000.
    NumerixS Investment Technologies Inc got a new position at about $58,000.
    Institutional investors hold 9.21% of the Levi Strauss & Co. stock.

    Experts’ ratings on LEVI

    Bank of America boosted its price target on LEVI from $20.00 to $22.00 and marked the stock as a ā€œbuyā€ in October.
    Guggenheim repeated a ā€œbuyā€ rating in September.
    ValuEngine upgraded Levi Strauss & Co. from a ā€œsellā€ rating to a ā€œholdā€ in October.
    Levi Strauss & Co. currently has a consensus rating of ā€œBuyā€ and aĀ  price target of $24.43.

     

    About Levi Strauss

    The company is founded by Levi Strauss, an immigrant from Bavaria who came to San Francisco in 1850 during the Gold Rush. He brought dry goods for selling to the miners. he recognized the minersā€™ need for durable pants and hired a tailor to sew clothes out of tent canvas. Denim came later.
    A partnership of three Strauss brothers was built in 1853.
    After Strauss died the leadership of the company passed to the Haas family. By the 1960s, Leviā€™s jeans became popular globally. In 1971, when the company went public it was operating in 50 countries.

    Levi Strauss & Co designs, and markets jeans, casual dress, pants, skirts, jackets, footwear, and accessories for women, men, and children under the brands: Levi’s, Dockers, Signature by Levi Strauss & Co, and Denizen. The company also authorizes Levi’s and Dockers’ trademarks for many product categories, like footwear, belts, wallets and bags, outerwear, sweaters, dress shirts, kids wear, sleepwear, and hosiery.

    Levi’s is a famous brand but the stock needs a price accumulation before it keeps the advance. Anyway, this is the stock to be watched. Its trends in Europe are strong, rising at 20% a year for the past two years and 14% in 2019. Levi proceeds to diversify its distribution in Europe and it is now 50% direct-to-consumer sales. But the U.S. sales are down and now it represents 30% of Levi’s overall sales.

  • Builders FirstSource Inc. Is Good Long-Term Investment

    Builders FirstSource Inc. Is Good Long-Term Investment

    Builders FirstSource Inc. Is Good Long-Term Investment
    Builders FirstSource Inc is a good long-term investment with the possibility to produce almost 30% of revenue

    By Guy Avtalyon

    Builders FirstSource Inc BLDR stock is, according to analysts, rated as a buy. In November it was upgraded from a hold rating.

    This third-quarter earnings season, many companies reported better earnings per share and beat the experts’ estimations and expectations. There were a lot of outperformed stocks and investors are interested to add them in their portfolios because they want strong returns. But which one or few to choose? The market noise is enormous and it so hard for individual investors to make such a decision.

    Builders FirstSource Inc.

    Builders FirstSource (BLDR) is currently recommended as a buy. This stock is trading with a P/E ratio of 12.74. Meaning, at current prices, you have to pay $12.74 for every $1 in trailing yearly profits. Over the past 52 weeks, BLDR’s P/E ratio has been as high 25.65 and low 10.15. But value investors use the P/S ratio as a metric also. You can find the P/S ratio when divide the stock price by sales.

    On the last day of October Builders FirstSource issued its Q3 earnings report.

    Builders FirstSource’s quarterly earnings were $0.72 per share, meaning it beat experts’ expectations. The earnings per share were $0,67 for the same quarter last year.

    So, we can easily see earnings of 20%. Surprised? For the previous quarter,Ā  it was supposed that this company would report earnings of $0.48 per share. But it delivered earnings of $0.63, showing an increase of 31.25%. For the last 12 months or 4 quarters, Builders FirstSource has exceeded consensus EPS estimates 4 times.

    The company posted revenues of $1.98 billion for the third quarter. This compares to year-ago revenues of $2.12 billion. The company has beaten consensus revenue estimates two times for the last four quarters.

    “Our strong third-quarter growth in sales volume and margins combined with our focus on working capital management generated another quarter of strong cash flow.Ā  We were also pleased to deploy capital on an accretive acquisition, while at the same time, further improving our ratio of net financial debt to Adjusted EBITDA to 2.5 times,ā€ said CFO Peter Jackson.

    BLDR stock is currently trading at $25,36.

    What’s next for the Builders FirstSource stock?

    The tricky question indeed. The price made a slight decline of 0,02% yesterday. You can use one simple measure: the company’s earnings outlook. You have to examine the current earnings expectations given by the experts but most importantly you have to check how their predictions have changed.

    The stock is bullish and Traders-Paradise opinion is the price can go up from $25.50 to $27 over the next 12 months. So, we can say it is profitable to invest in Builders FirstSource stock since the long-term earning potential is about 7.00% in the same period.

    The company’s ABOUT

    The company is a supplier and manufacturer of building materials, components, and construction services.Ā 

    Builders FirstSource provides an integrated solution to its customers offering manufacturing, supply, and installation of building products such as windows, doors, and millwork lines.

    Its products are the factory-built roof and floor trusses, wall panels and stairs, vinyl windows, millwork and trim, and engineered wood designed, cut, and constructed. It constructs interior and exterior doors.Ā 

    The company is headquartered in Dallas, Texas.

    Should you buy the Builders FirstSource stock?

    Traders-Paradise predicts a future increase in values of Builders FirstSource, Inc (BLDR) stock. If you want to hold stock with good return, Builders FirstSource, Inc might be a good option for you. Builders FirstSource, Inc quote is $25.36 at 2019/11/20. Based on previous performances this stock may be worth up to $32 with revenue of almost 28% after a five years period. If you invest $10.000 today in this company, after 5 years, it is possible to have about $12.800.

     

  • AVEO Pharmaceuticals Stock Increases The Price On Good News

    AVEO Pharmaceuticals Stock Increases The Price On Good News

    AVEO Pharmaceuticals.Stock

    Measured over the past 5 years, AVEO shows strong growth in revenue: 10.25% on average per year.
    AVEO is stock with a buy signal right now.

    By Guy Avtalyon

    AVEO Oncology (NASDAQ: AVEO) today announced the presentation of updated data from the Phase 3 TIVO-3 trial. Previously, the data were displayed on Saturday, November 16, 2019. It was at the 18th International Kidney Cancer Symposium in Miami. In verbal presentation named ā€œTIVO-3: A Phase 3 Study to Compare Tivozanib to Sorafenib in Subjects with Refractory Advanced Renal Cell Carcinoma (RCC) Overall Survival 2-Year Updateā€ by Sumanta Kumar Pal, M.D., Associate Clinical Professor, Department of Medical Oncology and Therapeutics Research, and Co-director, Kidney Cancer Program at City of Hope Comprehensive Cancer Center.Ā 

    And the market reacted immediately. Traders-Paradise got the info that stock price is rising and here is the confirmation. Take a look at the chart below with updated data.

     

     

    About AVEO Pharmaceuticals, Inc.

    AVEO Pharmaceuticals, Inc. is a biopharmaceutical company with a focus on the development of treatments targeting cancer.

    In August 2017, AVEO and its partner, EUSA Pharma, got approval from the EU Commission for its VEGF tyrosine kinase inhibitor, Fotivda (tivozanib) for the first-line treatment of advanced renal cell carcinoma RCC. The drug is available in Germany, Spain, Norway, Iceland, New Zealand, Austria, and the United Kingdom. AVEO got the exclusive rights to develop and commercialize tivozanib across all countries outside Asia and the Middle East under a license from Kyowa Hakko Kirin in 2006.

    AVEO Pharmaceuticals, Inc. reported earnings of 10 cents per share in the third quarter of 2019 and bounced from the loss of 18 cents from last year.

    Several days ago, on November 12, the company reported revenues of $25.7 million which is an increase of $2.5 million year-to-year. This new revenue beat all experts’ expectations. That influenced the stock price and it jumped a short after report for 8,8%. But that increase came after the stock dropped almost 65% this year while the whole industry marked an increase of 1,2%.

    Why invest in AVEO?

    This increase in stock price didn’t last for a long, 3 days later. November 15, the price dropped from $0.64 to $0.63 and decreased over 3 days in a row. The stock price varied 4.56% from a day low at $0.63 to a day high of $0.66. The good news is that the trading volume fell also because the volume has to follow the stock price. On the last trading day, the volume lowered by 2.34 million shares.
    And the price is rising at a high speed, more and more. At the moment of writing this post, it rose to almost 5%. Watch this stock. It is possible to see $10 next year.

     

  • LCI Industries Stock Stands Out In The Market

    LCI Industries Stock Stands Out In The Market

    LCI Industries Stock Stands Out In The Market
    LCI Industries (LCII) supplies a large number of highly engineered components for the leading original equipment manufacturers.
    Recently, LCI announced the Q3 earnings report and the stock looks like a good option for value investors.

    By Gorica Gligorijevic

    LCI Industries (LCII), announced a few days ago that the Board of Directors authorized a quarterly dividend of $0.65/share of common stock on December 20, 2019. The dividend is payable to the stockholders that record at the close of business on December 6, 2019. Almost at the same time the company LCI Industries appointed Johnny Sirpilla to Board of Directors. Johnny Sirpilla is the founder of Encourage LLC. It is a small equity firm investing in population health management, employee health, medical device development, cancer prevention testing, fashion, interior design, senior living communities, residential and commercial development projects, etc.

    This stock could easily provide a 204% profit in just over 5 years. Insider information claims that there is a strong buying activity of this stock.Ā 

    It is currently traded at $104.71.

     

    On November 5 the company issued a Q3 earnings report and had an earnings call presentation.Ā 

    LCI Industries revenue

    The company reported third-quarter revenues of $586 million which is down 3% from the same quarter last year. Its wholesale shipments declined double-digits. Also, LCI reported a content increase in towable RVs, innovations that provide them to perform better than the other similar companies in the market.

    LCI’s international markets now exceed 41% of the total net sales. The operating margins are improved, according to the report.

    Despite the increase in the content of towable RV increasing 2.2%, there was a drop in content for the motorhome. That decreased 2.9% over the past 12 months due to a shift to smaller motorhomes this year. The bright side of this report is the increase in sales RVs among younger buyers.Ā 

    LCI Industries reported $1.42 EPS for the quarter, beating the consensus estimate of $1.40 by $0.02. As we said, the company had revenue of $586.20 million for the quarter. The consensus estimation was of $578.87 million. LCI Industries has made $5.86 earnings per share over the last year. The current price-to-earnings ratio is 17.9. LCI Industries’ next earnings publication date is Thursday, February 6th, 2020 based on last year’s report dates.

    Investors interested in stocks from this industry estimate the LCI value opportunity in the future.

    Why LCII stock has a buy signal?

    LCII’s earnings have an improving outlook. Value investors examine figures to determine whether a company is undervalued.

    LCII forward P/E ratio is 18.88 and a PEG ratio of 1.18, which is a very important figure for a company’s expected earnings growth rate.

    The P/B ratio is 3.41. For value investors, the P/B ratio is important to compare a stock’s market value to its book value.Ā 

    LCII stands above others due to its stable earnings outlook.Ā 

    So Traders-Paradise opinion is that LCII is an excellent value option with more possibilities in the future.

    LCI Industries has increased its EPS by an average of 2.2% per year, during the last 3 years. In the last year, but its revenue is down by 5.7%. To be honest, it is always better to see revenue growth, but never forget how EPS growth is important. For LCI Industries, these two metrics are running in diverse directions, so despite the fact that it is difficult to be sure of future performance, we think this stock deserves to be watched. Moreover, this stock looks undervalued in comparison to its fair value. LCIIĀ  is trading at $104.71 which is below some experts estimations of the stock’s fair value at $150.64.

    About LCI Industries

    LCI Industries manufactures recreational vehicles, popular RVs, and accessories. The company sells toolboxes, truck caps, running boards, side-outs, mattresses, alignment systems, shock absorber, power stabilizer jacks, baggage doors, and sliders. LCI Industries sells its products globally.

    Customers are extremely satisfied with this company claiming the workers and support service at this company are great. Investors could be satisfied since the estimations show that the company has offices in Elkhart, Bradenton, Chesaning, Denver, and in 32 other locations. LCI has over 10.000 employees across 55 locations. The company’s headquarters is in White Plains, New York, United States.

     

  • Designer Brands A Value Stock To Watch

    Designer Brands A Value Stock To Watch

    Designer Brands A Value Stock To Watch
    Designer Brands Inc. is a US-based company, belongs to the Services sector and Apparel Stores industry. It has a market capitalization of $1.28B.Ā 

    By Guy Avtalyon

    Designer Brands became the new name for DSW Inc.from May this year. At that time they announced they will add more other designers’ shoes and accessories. The company began trading under a new ticker, DBI, on the New York Stock Exchange on April 2.

    Let’s take a look at its potential as an investment. Actually, we’ll analyze its Return On Capital Employed (ROCE), because that will give us a sense of the quality of the business.

    ROCE will show the ‘return’ a company generates from its capital. When you see a company with higher ROCE it is a sign that you are dealing with a business with better quality.

    Here is the formula:

    Return on Capital Employed = Earnings Before Interest and Tax (EBIT) Ć· (Total Assets – Current Liabilities)

    For Designer Brands based on data for the first eight months this year, it is calculated

    0.084 = $160m Ć· ($2.6b – US$649m) or 8,4%

    Is it good or bad for Designers Brands?

    ROCE is helpful to see relations between related companies in the same industry. If we compare its ROCE, for example, with returns on bonds, we can see that this result wasn’t excellent. Designer Brands’s ROCE was average. And investors may find better opportunities in some other investment, right?

    ROCE of 8,4% is almost double less than what the company had 3 years ago when it was 15%. What does it mean? Well, several reasons can be in the play but it is obvious that the company has some problems.

    When you employ ROCE as a metric one thing you have to keep in your mind. It is a helpful tool, but it is not without disadvantages. You have to be cautious when examining the ROCE of different companies because there is no two or more companies that are precisely similar.

    ROCE isn’t necessarily a good metric due to the nature of the business. This kind of business usually has several sales peeks over the year but also the lower sales-rate periods. After the announcement of changing the name, Designer Brands’ revenue is constantly increasing.

    But what we can see is the Designer Brands has total liabilities of $649m and total assets of US$2.6b. So, its liabilities are approximately 25% of its assets which is a reasonable level and has a modest effect on ROCE.

    Designer Brands (DBI) is possible a good long-term investment.Ā 

    The current price might go up to $20 in the next three months with a possible profit of up to 70% in 2 years.

    This stock has a strong buy signal since the short-term moving average is above the long-term moving average. It looks that further gains are very possible. But this stock is a risky one. It can move 3.40% between the high and low prices over one day as the historical data shows but last week’s average daily volatility was 3,37% which is medium.Ā 

    If you are trading this stock maybe you should consider setting the stop-loss limit at -5,60%. It looks that this stock is currently well priced, it isnā€™t oversold and not overbought but the stock may be undervalued. That gives the space to raise more.

    Designer Brands (DBI) is a stock many investors are following right now. The stock forward P/E ratio is 7.76. Its industry’s average forward P/E is 10.72. Over the past 12 months, the highest forward P/E ratio was15.30 and the lowest was 6.84, which lead us to a median of 11.14.

    The price has been changed in four past weeks for 5.13% and for the last three months 18.80%. Considering the possibilities of its earnings, DBI stands out as one of the market’s hottest value stocks right now.

    What is Designer Brands?

    Designer Brands is one of the largest designers, producers, and retailers of footwear and accessories in the USA.

    Under the name, DSW (Designer Shoe Warehouse) the first store opened in 1991 in Dublin, Ohio. Today, DSW holds more than 500 stores in 44 states. Also, there is the Affiliated Business Group with almost 290 leased units for retailers, such as Stein Mart.

    The company also operates in Canada, in collaboration with The Shoe Company and Shoe Warehouse trough 150 locations.Ā 

    In 2018, Designer Brands acquired Camuto Group, best known for the Vince CamutoĀ® brand and the Jessica SimpsonĀ® and Lucky BrandĀ®. This partnership provides Designer Brands to be one of the largest footwear companies in North America. It opened global capabilities in product design, development, and production. The company seems to be moving to a long-term strategy for growth and relevance with customers.

    Since 2005, the company is traded on the NYSE under the ticker symbol DBI.

     

Traders-Paradise