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Palo Alto & CyberArk, Corning Q2 beat, Sphere price target
Palo Alto & CyberArk, Corning Q2 beat, Sphere price target

Yahoo

time20 hours ago

  • Business
  • Yahoo

Palo Alto & CyberArk, Corning Q2 beat, Sphere price target

Market Domination host Josh Lipton tracks the latest market movers and stocks in this Market Minute. Palo Alto Networks (PANW) is reportedly in talks to acquire CyberArk (CYBR) in a deal that could exceed $20 billion, according to The Wall Street Journal. Corning (GLW) stock is jumping after the company topped second quarter earnings and issued upbeat third quarter guidance. Sphere Entertainment (SPHR) stock gains after Goldman Sachs raised its price target, citing the company's new partnership with Abu Dhabi's Department of Culture and Tourism as a potential catalyst. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's market minute. Palo Alto Networks reportedly has its sights set on acquiring CyberArk software. According to the Wall Street Journal, a deal could value CyberArk at more than $20 billion, and Palo Alto could finalize a deal for the firm as soon as later this week. Communications equipment company Corning reporting a beat on sales and earnings for the second quarter. Looking ahead, the company is also providing a better-than-expected outlook for the third quarter. JP Morgan noting that guidance should reinforce investor confidence and earnings upside opportunity in the second half of 2025. And Sphere Entertainment getting a lift, Goldman Sachs from raising its price target on that stock while reiterating its buy rating. Goldman noting that Sphere's agreement with the Abu Dhabi Department of Culture and Tourism should act as a catalyst. And that's your Yahoo! Finance market minute. For more on what's trending on Yahoo! Finance, scan the QR code below to track the best and worst performing stocks of the session. Related Videos How is the Dow calculated? Here's a breakdown. Market is seeing 'pockets of speculation,' not 'excessive' froth Berkshire trims VeriSign stake, Novo Nordisk craters, PayPal falls Market's 'fuel' for further P/E expansion is 'nearing empty' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Pfizer Stock Is a Value Play Ahead of Earnings - Investors Can Short PFE Puts for Income
Pfizer Stock Is a Value Play Ahead of Earnings - Investors Can Short PFE Puts for Income

Yahoo

time21 hours ago

  • Business
  • Yahoo

Pfizer Stock Is a Value Play Ahead of Earnings - Investors Can Short PFE Puts for Income

Pfizer, Inc. (PFE) stock still looks cheap ahead of its upcoming Aug. 5 Q2 earnings release. Moreover, investors can make extra income by selling out-of-the-money (OTM) put options. This article updates my July 2 Barchart piece, 'Huge Unusual Volume in Pfizer Put Options Signals Investors Bullish Outlook.' More News from Barchart $200 AMD Price Target? Try These 2 Option Trades Before the Market Moves Option Volatility And Earnings Report For July 28 – Aug 1 Should You Grab This 'Strong Buy' Semiconductor Stock Ahead of Earnings? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! PFE stock is at $24.23 in midday trading on Tuesday, July 29. That's down from its March 7 high of $26.73. It could be worth substantially more, as this article will show. Statistically Cheap I demonstrated in my last article that PFE stock appears to be undervalued based on its historical price-to-earnings (P/E) ratio and analysts' earnings per share (EPS) forecasts. Additionally, based on its average historical dividend yield, PFE could rebound if it were to revert to its historical mean yield. Price-Earnings Target For example, analysts project $3.01 EPS this year and $3.08 in 2026. Barchart's analyst survey says the range is between $3.07 this year and $3.06 in 2026 - i.e., a slight decline in EPS. However, Yahoo! Finance reports a $3.01 EPS estimate for 2025 and $3.08 next year, and Stock Analysis says the analyst range is between $3.03 and $3.13. So, on average, these surveys range between $3.03 EPS this year and $3.09 next year. That means PFE stock is trading on a forward P/E multiple of between 8.0x (i.e., $24.23/$3.03) for 2025 and 7.84x ($24.23/$3.09). This is well below its historical valuation average. For example, Seeking Alpha reports that Pfizer stock has had an average 10.79x forward P/E multiple in the last 5 years. In addition, Morningstar says the 5-year average forward multiple has been 10.16x. So, using a 10.5x average forward multiple, we can forecast where PFE would trade if it reverts to its mean valuation: $3.03 EPS x 10.5 = $31.82 2025 target $3.09 EPS x 10.5 = $32.45 2026 target So, on average, the price target is $32.13 if PFE were to rise to its average multiple. That presents a potential upside of +32.6% from today. Dividend Yield Target The same thing is evident with PFE's average dividend yield. Its yield today is 7.09% (i.e., $1.72/$24.23). But, historically, it's been 4.25% (Morningstar), or 4.58% (Yahoo! Finance). So, using an average yield of 4.415%, PFE should be worth +71 % more: $1.72 / 0.0415 = $41.45 or +71.0% more The bottom line is that if PFE were to trade at its historical mean P/E multiple or dividend yield the stock is deeply undervalued. In addition, analysts see the stock as too cheap. Analysts' Target Prices For example, Yahoo! Finance reports that 24 analysts have an average price target of $28.67, or +18% higher. Barchart's mean survey target is $27.81, and Stock Analysis says 14 analysts have an average price target of $29.92, or +23% higher. Moreover, which tracks recent analyst recommendations and write-ups, reports that 17 analysts have an average $32.21 price target. So, on average, these surveys show that analysts believe PFE stock is worth $29.65. That is potentially +22.3% higher than today. Summary Valuation As a result, using these three metrics, PFE stock looks deeply undervalued: P/E based target ……. $32.13 Div Yield target ……… $41.45 Analysts' targets ……. $29.65 Average Target Price … $34.41, or over $10 higher, and a potential upside of +42%. However, there is no guarantee this will happen over the next 12 months. As a result, it makes sense to set a lower buy-in price and get paid while waiting for this to occur. That's what happens when an investor sells short out-of-the-money (OTM) puts in nearby expiry periods. Shorting OTM PFE Put Options for Income For example, look at the Aug. 29 expiration period, which is one month from today. It shows that the $23.00 put option exercise price, which is 5% below today's trading price (i.e., out-of-the-money), has an attractive yield. Since the midpoing premium is 26 cents, that offers a short-seller (i.e., an investor who enters a trade to 'Sell to Open') an immediate 1.13% yield (i.e., $0.26/$23.00 = 0.0113). This also means that even if PFE stock falls to $23.00, the investor has a breakeven point of $23.00-$0.26, or $22.74. That is 6.3% below today's price, providing good downside protection. Moreover, the delta ratio is low at just 24%, implying a low probability that the stock will fall to this strike price over the next month. That implies an investor stands to make an expected return of over 3.3% over the next 3 months if this trade can be repeated. In effect, it allows investors at today's undervalued price to make extra income. In addition, even if PFE falls to $23.00, the investor's potential upside is quite attractive, over +50%: $34.41 target price / $22.74 breakeven point = 1.513 - 1 = +51.3% upside The bottom line here is that PFE stock looks deeply undervalued on a statistical basis. One way to play it is to short OTM puts to generate extra income. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤

Tractor Supply Q2 beat, Valero Energy falls, Spotify upgraded
Tractor Supply Q2 beat, Valero Energy falls, Spotify upgraded

Yahoo

time6 days ago

  • Business
  • Yahoo

Tractor Supply Q2 beat, Valero Energy falls, Spotify upgraded

Yahoo Finance anchor Josh Lipton tracks today's top moving stocks and biggest market stories in this Market Minute. Tractor Supply Company (TSCO) reported better-than-expected second quarter comparable sales and net sales. The company also reaffirmed its full-year outlook. Valero Energy (VLO) beat on second quarter earnings and revenue while seeing a decline in net income, sending the stock lower. Spotify (SPOT) was upgraded to Outperform by Oppenheimer, citing opportunity in ad user monetization. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's Market Minute. Tractor Supply reporting better than expected comparable sales for the second quarter. Net sales also topping estimates with the company reaffirming its 2025 financial outlook. Though Tractor Supply now expects its share repurchases to be in the range of $325 to $375 million, below the outlook most recently provided back in January. Valero Energy under pressure despite a beat on earnings and revenue for the second quarter. Net income attributable to Valero stockholders sees a nearly 19% decline compared to the same period last year. And Spotify getting a lift as Oppenheimer raises its rating on that stock from perform to outperform. The firm noting there are many tailwinds ahead adding that the audio streaming company has a significant opportunity to monetize ad users. And that's your Yahoo! Finance Market Minute. For what's trending on Yahoo! Finance, scan the QR below to track the best and worst performing stocks of the session. Related Videos Mortgage rates steady, Trump says no capital gains on home sales Intel Q2 revenue tops estimates, will slash workforce Alphabet hikes AI spending plan: 'It's about time,' analyst says Tesla stock has an 'Elon tax' but offers 'front-row seat' to AI Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

S&P 500 eyes new record, Opendoor skyrockets, Bruker plummets
S&P 500 eyes new record, Opendoor skyrockets, Bruker plummets

Yahoo

time22-07-2025

  • Business
  • Yahoo

S&P 500 eyes new record, Opendoor skyrockets, Bruker plummets

Yahoo Finance anchor Josh Lipton tracks today's top moving stocks and biggest market stories in this Market Minute. US stocks (^DJI, ^GSPC, ^IXIC) are climbing, with the S&P 500 eyeing a fresh record. Opendoor (OPEN) stock continues to skyrocket, surging over 100% so far in Monday's trading session. Bruker (BRKR) stock is plummeting after reporting preliminary second quarter results that failed to impress investors. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's market minute. US stocks rising with the tech heavy NASDAQ gaining after last week's record setting rally in growth names. The S&P 500 also eyeing a fresh record, Wall Street beginning a busy week of big tech highlighted earnings as investors also keeping a watch of continued risk around President Trump's tariffs. Opendoor continuing its meteoric rise here amid its meme stock style rally. Shares surging over a hundred percent in today's trade. Powering that stock in part has been a public bull case from EMJ Capital and a ream of speculative bets posted to the subreddit Wall Street bets. And Brook reportedly reporting preliminary second quarter revenue and adjusted profit that fell short of expectations. City noting it sees risk to second half numbers with the company likely to lower guidance. And that's your Yahoo! Finance market minute for more. What's trending on Yahoo! Finance? Scan the QR code below to track the best and worst performing stocks of the session.

Nvidia Stock Is at a Peak - What's the Best Play Here for NVDA?
Nvidia Stock Is at a Peak - What's the Best Play Here for NVDA?

Yahoo

time15-07-2025

  • Business
  • Yahoo

Nvidia Stock Is at a Peak - What's the Best Play Here for NVDA?

Three weeks ago, we recommended Nvidia Inc. (NVDA) stock in a June 22 Barchart article and shorting out-of-the-money puts. Now, NVDA is near its target prices, and the short play is successful. What is the best play here? NVDA is at $171.30, up over 4.5% today. Trump OK'd an export license to sell its powerful H20 AI chips to China after Nvidia's CEO, Jensen Huang, met with President Trump. The Wall Street Journal said this has been a top seller for Nvidia in China and was specially designed for the Chinese market. How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Alibaba Stock is Well Off Its Highs - What is the Best Way to Play BABA? Generate Income on MSTR Without Owning The Stock (Yet) Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! My prior price target was $178 per share using an estimated 55% forward free cash flow (FCF) margin (i.e., FCF/sales), as well as a 2.85% FCF yield valuation metric (i.e., 35x FCF multiple). Last quarter, Nvidia made a 59% FCF margin. So, if this continues over the coming year, NVDA stock could have further to go. Moreover, analysts have lifted their price targets. Let's look at this. In Q1 ending April 27, Nvidia generated $26.1 billion in FCF on $44.06 billion in sales. That represents a 59.2% FCF margin. Over the trailing months, according to Stock Analysis, it's generated $72.06 billion FCF on $148.5 billion in sales, or a 48.5% FCF margin. So, it seems reasonable to assume Nvidia could make at least a 57% FCF margin going forward. Here's how that would work out. Analysts expect sales to rise to a range between $199.89 billion this year ending Jan. 2026 and $251.2 billion next year. That puts it on a next 12 months (NTM) run rate of $225.5 billion. Moreover, now that it will be able to sell to China again, let's assume this pushes sales at least 5% higher to $236.8 billion: $236.8b NTM sales x 57% FCF margin = $135 billion FCF Just to be conservative, let's use a 55% margin on the lower NTM sales estimates: $225.5 billion x 55% margin = $124 billion FCF So, our estimate is that FCF over the next 12 months could range between $124 billion and $135 billion, or about $130 billion on average Therefore, using a 30x FCF multiple (i.e., the same as dividing by 3.33% FCF yield): $230b x 30 = $6,900 billion market cap (i.e., $6.9 trillion) That is 65% over today's market cap of $4.178 trillion, according to Yahoo! Finance (i.e., at $171.35 p/sh). In other words, NVDA stock could be worth 65% more, or $291.55 per share. $171.35 x 1.65 = $282.73 price target That is what might happen over the next 12 months (NTM) if analysts' revenue targets are hit and its FCF margin averages 56%. Analysts have closer price targets. The average of 66 analysts surveyed by Yahoo! Finance is $173.92. However, that is higher than three weeks ago, when I reported that the average was $172.60. Moreover, which tracks recent analyst recommendations, now reports that 39 analysts have a $200.71 price target, up from $179.87 three weeks ago. One way to play this is to sell short out-of-the-money puts. That way, an investor can set a lower buy-in price and still get paid extra income. In my last Barchart article on June 22 ("Make Over a 2.4% One-Month Yield Shorting Nvidia Out-of-the-Money Puts"), I suggested shorting the $137 strike price put option expiring July 25. The yield was 2.48% over the next 34 days (i.e., $3.40/$137.00). Today, that contract is almost worthless, as it's trading for just 8 cents. In other words, the short seller of these puts has made almost all the money (i.e., the stock has risen, making the short-put play successful). The investor's account has little chance of getting assigned to buy 100 shares per put contract at $137.00 on or before July 25. It makes sense to roll this over by doing a 'Buy to Close" and entering a new trade to 'Sell to Open' at a later expiry period and higher strike price. For example, the Aug. 29 expiry period, 45 days to expiry or DTE (which is after the expected Aug. 27 Q2 earnings release date), shows that $155.00 strike price put has a midpoint premium of $3.93. So, the short-put yield is: $393/$155.00 = 0.2535 = 2.535% over 45 days That works out to an annualized expected return (ER) of +20.28% (i.e., 2.535% x 8). So, even if NVDA stock stays flat, the investor stands to make good money here shorting these puts every 45 days (assuming the same yield occurs). There seems to be a low risk here, given that the delta ratio is just 23%. But, given how volatile NVDA has been, and that the stock is at a peak, it might make sense to use some of the income received to buy puts at lower strike prices. Keep in mind that the breakeven point, i.e., the price where an unrealized loss could occur, is $151.07: $155-$3.93 = $151.07 That is 11.8% below today's price. But it is not uncommon for a stock like NVDA to fall 20% from its peak. That would put it at $137.00. So, using some of the income to buy long puts at $140 or $145 is not unreasonable. That would cost between $144 and $204 ($174 on average) for the $15,500 investment (net of $393 already received): $393 income - $174 long hedge = $219, or $219 / $15,500 invested in short put play = 1.41% New Breakeven = $15,500 = $174 = $15,326 or $153.26 per put contract This means that the investor's potential (unrealized) loss is between $14,250 and $15,326, or -$1,076 net on the $15,326 net investment, or -7%. But keep in mind that this is only an unrealized loss. The investor would have protected himself from a much lower downside by buying long puts from the income received. And, after all, the price target is substantially higher, so the investor might be willing to hold on or even sell out-of-the-money call options to recoup some of the unrealized loss. The bottom line here is that NVDA has room to move higher. Shorting OTM puts with a lower strike price long put hedge is one good way to play this. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio

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