Core Viewpoint - The long-term health care crisis in the U.S. is significant, with Americans spending $245 billion on long-term care, indicating a growing investment opportunity in long-term care stocks [1][2]. Group 1: Long-Term Care Industry Overview - The long-term care sector includes businesses providing care in homes and nursing facilities, with strong operators managing to be profitable despite low margins [1]. - The aging population is expected to be a major theme impacting the health care sector and REITs over the next decade [5]. Group 2: Company Profiles Welltower (WELL) - Welltower is a real estate investment trust (REIT) focused on providing capital to senior housing operators and health systems, generating 85% of its net operating income (NOI) from the U.S. [3][4]. - In 2023, seniors housing accounted for 42% of its NOI, with a projected occupancy rate increase of 290 basis points for 2024 [4][6]. - The company reported a 21.7% growth in same-store NOI for seniors housing in Q2 2023 and has engaged in $4.9 billion in acquisitions and loan funding since the start of 2024 [6]. Chemed (CHE) - Chemed has a market capitalization of $8.69 billion and derives 60% of its revenue from Vitas, a leading hospice care provider, and 40% from Roto-Rooter [7][8]. - The company reported $596 million in revenue for Q2 2023, with a 34.1% increase in adjusted earnings per share [8]. - Vitas' EBITDA was 17.8%, significantly higher than the previous year, while Roto-Rooter's EBITDA remained strong at 27.0% [9]. The Pennant Group (PNTG) - The Pennant Group, with a market cap of $861 million, has seen its shares rise by 101% in 2024 [10]. - The company operates a decentralized model for home health and hospice care, managing 53 senior living communities across 13 states [10][11]. - It has achieved a compounded annual revenue growth of 22% over the past decade and is positioned to benefit from industry consolidation due to the aging population [11][12].

As we approach November 5 and U.S. presidential election, social media stocks are on everyone’s mind.Social media stocks are becoming more relevant in debates and conjecture on the next election between former President Donald Trump and Vice President Kamala Harris.Additionally, well-known social media stocks are attracting attention from internet expansion, corporate collaboration, and video demand. Forecasting a 17% compound annual growth rate (CAGR) from $81.42 billion in 2024, global social media is exp ...

The second-quarter earnings season has been a mixed bag, with several companies beating estimates but issuing a lower-than-expected guidance. Ongoing concerns about recession and the delay in Fed rate cut have also put investors in worry. However, several companies have reported impressive financials despite inflation concerns. These companies have survived the worst and are bracing for a strong second half of 2024. I’ve picked three stocks to buy after the strong Q2 earnings.The current dip in the market i ...

Industry Overview - Plant-based food stocks are showing strong future growth potential, particularly among younger generations like Generation Z, which has seen a five percentage-point increase in adoption since 2021 [1] - The global plant-based market is projected to grow from $23.73 billion today to approximately $55.84 billion by 2033 [2] Company Analysis: Oatly (OTLY) - Oatly reported an earnings per share loss of five cents, beating estimates by two cents, with revenue of $202.2 million, reflecting a 3.2% year-over-year increase [4] - The company raised its full-year revenue growth outlook to a range of 6% to 10% from a previous range of 5% to 10% [4] - U.S. retail sales of plant-based drinks, including oat milk, increased to $695 million, representing a 28% growth [5] Company Analysis: Ingredion (INGR) - Ingredion has been expanding its plant-based offerings and reported an EPS of $2.87, beating estimates by 38 cents, although revenue of $1.88 billion missed by $100 million [7] - The company raised its full-year EPS guidance to a range of $10.20 to $10.70 and plans to invest in organic growth, dividends, and share buybacks [7] - Ingredion offers a dividend yield of 2.43% [6] Company Analysis: Bunge (BG) - Bunge's stock has recently pulled back from about $115 to a low of $96, presenting a potential buying opportunity [9] - The company is not a pure plant-based play but provides ingredients for meat and dairy alternatives, with a dividend yield of 2.84% [10] - Bunge has faced challenges, including a downgrade on biofuels and a delay in its $8.2 billion acquisition of Viterra [10]

Group 1 - Eli Lilly's stock increased by 13% after exceeding analyst expectations and raising its guidance, driven by strong performance from its GLP-1 drugs, Zepbound and Mounjaro [1] - The company reported a net income of $2.97 billion, or $3.28 per share, on revenue of $11.3 billion, and raised its full-year revenue guidance to $45.4 billion-$46.6 billion and earnings per share guidance to $15.10-$15.40 [1] - The market reacted positively, with shares trading over $874 and a market capitalization exceeding $825 billion [1] Group 2 - Lilly resolved its two-year-long shortages of diabetes drugs, with seven production sites operational by the end of Q1 [2] - Mounjaro generated $3.1 billion in sales in Q2, while Zepbound brought in over $1.2 billion, compensating for declining sales of older medications like Trulicity [2] - The success of GLP-1 drugs has enhanced the visibility of other Lilly products, such as Jardiance and Verzenio [2] Group 3 - The competitive landscape includes Pfizer, Amgen, and Viking Therapeutics, which are developing similar drugs, while Novo Nordisk remains a primary competitor with its offerings [3] - The current market dynamics suggest that GLP-1 drugs could be transformative for diabetes and obesity treatment, akin to the impact of statins in the 1990s [3]

With the month of August kicking off, now is a great time to find the most promising value stocks to buy. These companies typically are market leaders in their industry that may be trading at a discount to their intrinsic value. Investors often look towards traditional valuation metrics such as price to earnings, price to book and free cash flow margin — to name a few. However, it is important to point out that the metrics one uses will often be dependent on a variety of factors. It can include the industry ...

Core Insights - The article discusses stocks priced below $50 that have potential for long-term investors due to rising revenue and earnings, along with growth catalysts and low valuations [1][2][3] Company Summaries Semrush (SEMR) - Semrush is a search engine marketing tool with a strong annual recurring revenue model, achieving 21% year-over-year revenue growth in Q1, totaling $85.8 million, with net income of $2.1 million and a net profit margin of 2.5% [5][6] - The company has nearly 112,000 paying customers and is expected to expand profit margins, with a single-year stock gain of 31% and an average price target suggesting a 19% upside [6] Upwork (UPWK) - Upwork is an online freelance marketplace benefiting from the remote work trend, despite a 25% year-to-date stock loss [7][8] - The company reported 19% year-over-year revenue growth in Q1, reaching $190.9 million, with net income up 7% to $18.4 million and a net profit margin of 9.7% [8] - Upwork has seen significant growth in ad revenue (93% YOY) and Freelancer Plus revenue (76% YOY), with over 100,000 active subscriptions for the latter [9] SoFi (SOFI) - SoFi is a digital bank offering various financial products, currently facing a 31% year-to-date stock loss [10][11] - The company reported 20% year-over-year revenue growth in Q2, with net income of $17.4 million compared to a $47.5 million net loss in the same quarter last year, and membership growth from 6.24 million to 8.77 million [11] - The digital banking industry is projected to grow at a compounded annual growth rate of 11.7% until 2033, positioning SoFi to gain market share and potentially rally by 23% from current levels [12]

Enterprise software and cloud giant Oracle (NASDAQ:ORCL) has witnessed impressive momentum in its stock price over the past nine months. Despite lagging behind the S&P 500 last year, it has more than made up for it with a 21.3% jump year-to-date (YTD). The results may have surprised many, considering its missed top-line estimates in the past three quarters. Despite recent sluggish growth rates, the excitement around its backlog and recent breakthrough AI deals points to more upside ahead. Additionally, the ...

Core Insights - Investing in undervalued stocks can yield substantial returns by evaluating fundamental strengths, industry positioning, and growth potential [1] Industry Insights - The insurance sector has shown resilience and growth, providing stability and steady returns due to essential services and financial robustness [2] - The professional services sector, particularly executive search and recruitment, thrives during economic downturns as businesses seek top talent, indicating high profitability and operational efficiency [3] - The regional banking sector presents compelling opportunities, especially for institutions with high net interest margins despite increased costs, showcasing effective management in a rising interest rate environment [4] Company Insights - **NMI Holdings (NMIH)**: Specializes in insurance with a record-high insurance coverage of $203.5 billion, marking a 2.1% sequential growth and a 6.4% annual increase in insurance in force [5][6] - NMI Holdings' credit performance improved with a default rate of 0.76% and a loss ratio of 0.2%, indicating strong financial health [6] - **Heidrick & Struggles International (HSII)**: Focuses on executive search and consulting, reporting an adjusted EBITDA of $28.8 million for Q2 2024, with a margin of 10.3%, impacted by nonrecurring expenses [7][8] - The Executive Search segment maintained a robust adjusted EBITDA of $52.7 million with a margin of 25.1%, reflecting solid performance [8] - **TFS Financial (TFSL)**: Operates in regional banking, reporting a net interest income decrease of $2.1 million, or 3%, for Q3 fiscal 2024, attributed to rising costs of interest-bearing liabilities [9][10] - Despite a slight decline in net interest margin to 1.67%, TFS Financial maintains a high margin, demonstrating resilience in a challenging interest rate environment [10][11]

Market Overview - Since July 16, market volatility has increased, with the Nasdaq 100 down 13% from its peak, indicating a correction phase [1] - The economy remains strong, and expectations for rate cuts starting in September are growing, suggesting potential upside for certain stocks [1] Bargain Stocks Performance - In Q2 2024, selected bargain stocks reported revenue growth of at least 8% and earnings growth above 10%, yet they trade below 14 times forward earnings, representing a 25% discount to the market [2] - As long as these stocks continue to perform well, their price-to-earnings (P/E) multiples are expected to expand, closing the valuation gap [2] Celestica (CLS) - Celestica operates in two segments: Advanced Technology Solutions and Connectivity & Cloud Solutions, with the latter experiencing significant growth due to hyperscaler investments [3] - In Q2 2024, Celestica exceeded revenue estimates by $140 million, achieving revenues of $2.39 billion, a 23% year-over-year increase, and adjusted EPS rose to $0.91 from $0.55 in Q2 2023 [4] - The Connectivity & Cloud Solutions segment saw a 51% year-over-year revenue surge, with segment margins improving from 6.0% to 7.2% [5] - Management raised full-year revenue guidance from $9.1 billion to $9.45 billion and adjusted EPS guidance from $3.30 to $3.62, resulting in a forward P/E of 13, indicating a bargain opportunity [6] PayPal (PYPL) - PayPal's new CEO has implemented a plan to revive profitable growth, with Q2 results showing acceleration in growth [7] - The company trades at 11 times FY2024 earnings, which is considered too cheap given its turnaround and growth in transaction margin dollars, which increased from $3.5 billion in Q1 to $3.6 billion in Q2, reflecting an 8% year-over-year growth [8][9] - Management has recognized the stock's discount and increased the buyback program from $5 billion to $6 billion, indicating confidence in future growth [9] Cigna (CI) - Cigna operates two main segments: Cigna Healthcare and Evernorth Health Services, with the latter being a significant growth driver [10] - In Q2 2024, Evernorth's pharmacy benefit services and specialty revenues grew 41% and 18% year-over-year, respectively, contributing to a total revenue increase of 25% to $60.5 billion [11] - Adjusted EPS increased from $6.13 to $6.72, representing a 10% growth, and for FY2024, Cigna expects adjusted EPS of at least $28.40, resulting in a forward P/E of 12, indicating a bargain considering future growth opportunities [12]