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Millions lose out on historic mortgage rates as refinancing cools

Top Stories - 2 hours 51 min ago

Refinance applications are down despite the potential to save hundreds of dollars a month.


3 Big Dividend Stocks Yielding Over 8%; Raymond James Says ‘Buy’

Top Stories - 3 hours 8 min ago

Investment firm Raymond James has released its July performance recap, summing up the fourth month of the economic recovery. The firm notes that the early weeks of this recovery cycle showed a V-shaped turnaround for the economy, which has since slowed, taking a “treading water” patter. Raymond James sees defensive stock plays in a strong position, as they have somewhat outperformed since the second week of June.Raymond James strategist Tavis McCourt sees the slowing pattern as predictable, and linked to the pace of Congressional action on recovery stimulus packages. McCourt writes, “With D.C. negotiating another package, it is likely that high frequency economic data will decelerate in early August before another round of stimulus is signed, but the market clearly believes the likelihood is that more direct support at similar scale is likely through the election.”This makes defensive stocks part of a consistent strategy, to keep returns coming in for reinvestment. With this in mind, we used TipRanks database to pull up the stats on three stocks that Raymond James analysts have tapped as buying propositions. These are stocks with a specific set of clear attributes, that frequently indicate a strong defensive profile: a high dividend yield -- over 8%; and a considerable upside potential.Phillips 66 Partners (PSXP)The first stock on our list is the midstream affiliate of Phillips 66. PSXP spun off the oil giant to operate the natural gas and crude oil pipelines, along with terminals and processing plants, that move product from the producer to the distributors. The company’s network of transport assets extends from the central US to the Gulf coast of Texas and Louisiana.PSXP has shown a combination of poor share performance in the economic downturn plus relatively strong quarterly earnings. The stock is still down 53% from February’s pre-crash levels, while EPS beat expectations in both Q1 and Q2. The second quarter results also showed a sharp upward turn sequentially from Q1, coming in at $1.05.The company has used its earnings to keep up the dividend payment. The quarterly payment has been stable at 87.5 cents per common share for the past three quarters, and at $3.50 annualized give a yield of 12.7%. This is more than 6x higher than the average dividend yield found on the S&P 500. PSXP has a 7-year history of dividend reliability.The dividend is only part of the positive picture here. Raymond James analyst Justin Jenkins writes, “Despite the near-term volatility in PSXP from pandemic/demand and regulatory risks, we remain positive on the long term outlook. Longer-term, PSXP benefits from a solid backstop from Phillips 66 (PSX) relative to peers. The interplay between the Phillips franchise provides growth optionality, especially as demand normalizes…”Jenkins gives this stock a Buy rating, and his $36 price target suggests an upside of 30% for the coming year. (To watch Jenkins’ track record, click here)Overall, Phillips 66 Partners has a Moderate Buy from Wall Street’s analysts, based on 6 Buy and 3 Hold ratings given in recent weeks. The stock is currently trading for $28.15, and the average price target, at $37.11, is slightly more bullish than Jenkins’, suggesting a 32% one-year upside to the shares. (See PSXP stock analysis on TipRanks)Black Stone Minerals LP (BSM)Next on our list, Black Stone Minerals, is another player in the hydrocarbon industry. Black Stone is an exploration and development company, with land use rights on 20 million acres in 40 states, with two main focuses: the South, with holdings from Texas across to Alabama, and the Northern Plains, where it operates in Montana and the Dakotas. Appalachian gas plays in West Virginia and Pennsylvania round out Black Stone’s operations.Depressed demand and economic lockdown policies kept impacted profits, and Black Stone’s earnings dropped sharply in Q2. The company has maintained its dividend payment, however, adjusting the payout to keep it in-line with debt reduction efforts and improved free cash flow during 1H20.The success of those efforts can be seen by the 88% increase in the dividend from Q1 to Q2, despite the fall in earnings. The current dividend is 15 cents per share, or 60 cents annualized, and gives a strong dividend yield of 8.2%. Covering the stock for Raymond James, analyst John Freeman gives BSM shares a Buy rating. His $9 price target suggests it has room for a 22.5% upside potential in the next 12 months. (To watch Freeman’s track record, click here)Supporting his stance, Freeman points out the company’s improving balance sheet. He writes, “As a result of their announced asset sale, BSM's borrowing base was reduced to $430M (down 7%) in 2Q. The company had $153M drawn at the end of July putting their utilization at a little over 35% currently. BSM ended the quarter with leverage at a low 1x.” "We applaud the reduced leverage profile and increasing distribution (nearly doubled q/q), while continuing to like BSM's diverse asset base and steps towards Shelby Trough development," the analyst added. Overall, the analyst consensus rating on Black Stone, a Moderate Buy, is based on an even split – 2 Buys and 2 Holds. The stock’s $9.25 average price target suggests an upside of 26% from the $7.38 trading price. (See BSM stock analysis on TipRanks)Oneok, Inc. (OKE)Last on the list today is Oneok (pronounced One-Oak), another midstream company in the natural gas industry. Oneok operates in the Permian Basin, the Mid-Continent region, and the Rocky Mountain states, with a network of assets including pipelines, processing plants, and storage facilities.Oneok has underperformed in 1H20, despite a strong Q1 performance. The company’s earnings fell from 83 cents per share in first quarter to 32 cents in the second. Shares fell sharply in early March, and have yet to recover value; OKE is down 54% from pre-crash levels, and is simply not gaining traction.At the same time, the company does have those valuable midstream assets, and has held its dividend stable at 93.5 cents per common share, giving a yield of 12.8%. Those strengths make the low share price an attractive point of entry, a factor noted by Raymond James.Writing for the firm, James Weston says, “At ONEOK (OKE), we still see a solid management team, generalist-friendly structure, and intense Bakken operating leverage in a more constructive environment (which may begin to show itself somewhat in 3Q financials). True, Bakken regulatory headwinds would drive tack-on impacts through the value-chain and could push leverage sustainably above ~5x in our model. However, the painful ~60% YTD sell-off took OKE from a peer premium to a slight peer discount, largely pricing in this risk. Further, OKE remains an attractive total return story as our base case avoids a cut to its ~13% dividend yield."To this end, Weston puts a $33 price target behind his Buy rating, implying a about 10% upside to the stock from current levels. (To watch Weston’s track record, click here)Overall, with 2 Buy ratings, 13 Holds, and 1 Sell, the analyst consensus rating on OKE is a Hold. Meanwhile, the stock is selling for $29.73, and the average price target, $34.07, suggests it has ~15% upside for the year ahead. (See Oneok’s stock-price forecast on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis and to consider your own personal circumstances before making any investment.


Jobless claims preview: Another 1.4 million Americans likely filed new unemployment claims last week

Top Stories - 3 hours 39 min ago

The number of new unemployment insurance claims is expected to have improved only marginally last week, as the coronavirus pandemic continues to weigh on the pace of recovery in the labor market.


Here's What Annaly Capital Management, Inc.'s (NYSE:NLY) Shareholder Ownership Structure Looks Like

Top Stories - 4 hours 9 min ago

If you want to know who really controls Annaly Capital Management, Inc. (NYSE:NLY), then you'll have to look at the...


Why Wheaton Precious Metals (WPM) Stock is a Compelling Investment Case

Top Stories - 4 hours 15 min ago

First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check […]


NortonLifeLock (NASDAQ:NLOK) Long Term Shareholders are 40% In The Black

Top Stories - 4 hours 16 min ago

NortonLifeLock Inc. (NASDAQ:NLOK) shareholders should be happy to see the share price up 11% in the last month. But...


Why Barrick Gold Corp (GOLD) Stock is a Compelling Investment Case

Top Stories - 4 hours 46 min ago

First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check […]


How Competitive is Nutrien’s (NTR) Business?

Top Stories - 5 hours 3 min ago

First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check […]


Why Newmont Corp (NEM) Stock is a Compelling Investment Case

Top Stories - 5 hours 16 min ago

First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check […]


Why Philip Morris (PM) Stock is a Compelling Investment Case

Top Stories - 5 hours 18 min ago

First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check […]


Wells Fargo (WFC) Likely To Remain Resilient From COVID-19 Impact

Top Stories - 5 hours 23 min ago

First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check […]


Teladoc and Livongo merge in $18.5B deal

Top Stories - 5 hours 37 min ago

Teladoc Health Inc. and Livongo Health Inc. are merging in a $18.5 billion dollar deal that is expected to close in the fourth quarter. Yahoo Finance's Alexis Christoforous and Ines Ferre break down details.


J.P. Morgan: These 2 Healthcare Stocks Are Must-Watch Names

Top Stories - 5 hours 39 min ago

Marching forward together, the previous decade saw equities and bonds rally right alongside each other. At the same time, there was a negative correlation of daily returns, limiting portfolio volatility. This was a good thing for multi-asset portfolios like pension funds which benefited from the high-low frequency correlation, with declining yields also giving a bump to specific equity market sectors.Today, things have changed, with bond yields landing at almost zero. According to J.P. Morgan strategist Marko Kolanovic, this implies that the trend might be fading away, which poses a major threat to multi-asset portfolios.“Should yields (or inflation expectations) start rising, these portfolios could experience a triple-whammy: bond values would go lower, valuations of the above-described equity market segments would be under pressure, and bond-equity correlation would deteriorate as it is itself correlated with yields,” Kolanovic explained. The strategist added that even if yields don’t rise, in the long run, it’s unlikely that such portfolios will see mid-to-high single-digit returns.So, what does Kolanovic think investors should do? He suggests buying stocks with a more negative correlation to bonds, pointing to value and cyclical names in particular.Offering up concrete recommendations based on Kolanovic’s strategy, the analysts at J.P. Morgan are pounding the table on two stocks, noting that each could climb at least 60% higher in the year ahead. Using TipRanks’ database, we found out that each ticker has also received Buy ratings from the rest of the Street.Autolus Therapeutics (AUTL)Primarily focused on the development of precisely targeted, controlled and highly active T cell therapies, Autolus Therapeutics wants to offer cancer patients treatment options that are superior to the existing standard of care. Given its innovative technology, it’s clear why J.P. Morgan has been impressed by this healthcare name.Writing for the firm, four-star analyst Eric Joseph calls its lead programs, AUTO1 and AUTO3, “potentially best-in-class autologous CAR-T candidate therapies for the treatment of ALL and DLBCL.” When it comes to AUTO1, the available Phase 1/2 data provides a “meaningful de-risking,” with it having the potential to be the first auto-CAR-T therapy approved for both adult and pediatric ALL.Expounding on this, Joseph stated, “Combined, we forecast a worldwide peak sales opportunity of ~$275 million and anticipate U.S. approval for AUTO1 in 2023. Further, as the company is also exploring adoption potential in the outpatient/community oncology setting, we see the safety profile demonstrated to date.”As for AUTO3, its dual CD19/CD22-targeting CAR design makes it a stand-out, in Joseph’s opinion, as it could “yield more durable remissions relative to the currently approved CAR-T class.” In addition, the fact that the asset is more easily tolerated means it could be adopted in an outpatient setting, potentially expanding the addressable DLBCL commercial opportunity. Pivotal development is slated to kick off in 1H21, with regulatory approval potentially coming in 2024. The analyst estimates a worldwide peak sales opportunity of $1.5 billion.To this end, Joseph tells clients to watch out for several possible catalysts in 2H20 including full Phase 1 data for the ALEXANDER study of AUTO3 in DLBCL, long-term follow-up data from the Phase 1 ALLCAR19 study of AUTO1 in adult ALL as well as the initiation of Phase 1 development for AUTO1NG (pediatric ALL), AUTO3NG (DLBCL) and AUTO8 (multiple myeloma).Based on these key catalysts, Joseph commented, “...we believe current AUTL levels undervalue the risk-adjusted commercial potential of these two lead programs in addition to the broader pipeline of CAR-T candidates for heme onc and solid tumor indications.”All of the above convinced Joseph to step over to the bulls’ side. In addition to initiating coverage with an Overweight rating, the analyst set a $25 price target. This target suggests shares could rise 67.5% in the year ahead. (To watch Joseph’s track record, click here)   The bulls represent the majority on this one. Out of 8 total reviews published in the last three months, 7 analysts rated the stock a Buy, while only 1 said Hold. So, the word on the Street is that AUTL is a Strong Buy. The $25.29 average price target lands just above Joseph’s and puts the upside potential at 73%. (See AUTL stock analysis on TipRanks)Alexion Pharmaceuticals (ALXN)Targeting rare and devastating diseases, Alexion Pharmaceuticals hopes its therapies will be able to address the unmet medical needs of patients from all over the world. On the heels of its strong Q2 showing, J.P. Morgan thinks that now is the time to pull the trigger.Thanks to continued solid commercial execution across its key franchises, five-star analyst Cory Kasimov tells investors that ALXN was able to deliver double-digit top and bottom-line beats. As a result, management boosted its 2020 guidance for the top and bottom-lines. This is set to be driven by the lower than expected impact to new patient starts in 1H, strong compliance rates across indications, continued conversion to Ultomiris (aHUS in particular) and payer impact that hasn’t been observed yet.Although the new patient queue is slowing and COVID-19 poses a risk to compliance rates, which could have a negative impact on the top-line and operating margins, management announced a commitment to $500-$550 million of repurchases in 2020, increasing to at least one third of free cash flow, on average, from 2021-2023.Looking at its pipeline, it should be noted that ALXN discontinued ALXN-2040 (danicopan) in C3G, much to the dismay of some investors. That being said, plans for the Phase 3 study in PNH are on track.As a reminder, its Soliris therapy got the stamp of approval in 2007 and up until the approval of ALXN’s follow-on product, Ultomiris, in December 2018, it was the only available therapy for the treatment of PNH. Even though Ultomiris wasn’t able to generate superior results over Soliris in Phase 3 studies, its less frequent dosing schedule has enabled the rapid conversion, in Kasimov’s opinion.“We see the rapid conversion of Ultomiris in PNH translating to the aHUS indication, as well continued uptake of Soliris in neurology, which sets up the C5 franchise for a sustainable growth trajectory further supporting the attractive risk/reward profile at the current valuation,” Kasimov said.Based on everything ALXN has going for it, Kasimov reiterated an Overweight rating. He also bumped up the price target from $158 to $167, suggesting 59% upside potential. (To watch Kasimov’s track record, click here)  Turning now to the rest of the Street, 10 Buys and 5 Holds have been assigned in the last three months, which add up to a Moderate Buy consensus rating. In addition, the $146.67 average price target brings the upside potential to 41%. (See ALXN stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis and to consider your own personal circumstances before making any investment.


Novavax Rallies After Vaccine Results Deliver a Wild Ride

Top Stories - 5 hours 39 min ago

(Bloomberg) -- Novavax Inc. shares touched a five-year high as investors assessed early data on its experimental vaccine for Covid-19.The stock surged as much as 21%, after sinking in extended trading Tuesday. Novavax has rallied more than 4,300% so far this year on speculation about the potential for its vaccine.Results presented on Tuesday evening from a two-injection regimen when administered concurrently with Novavax’s immune-boosting technology generated antibody responses that were four times higher than those seen in people who had recovered from the disease. Some of the healthy adults in the study experienced side effects including fever, headache and fatigue.Confusion over the vaccine’s safety data arose after a media report incorrectly said trial participants were hospitalized with severe reactions. The vaccine appeared safe in the more than 100 patients who received it, according to the company. Reactions to the shots were generally mild, lasting two days or less. One patient getting the vaccine had a mild skin infection that was determined not to be related to the shot.Gregory Glenn, Novavax’s head of research and development, said adverse events were “sporadic” and spread across placebo as well as vaccinated patients in the study.Responses were similar across doses, meaning it may be easier for Novavax to manufacture. Dosing has been a key advantage the company has been touting along with less stringent guidelines on temperature, considering the widespread need for shots. There are more than 160 different shots in various stages of testing: Novavax joins the ranks of AstraZeneca Plc, Moderna Inc. as well as Pfizer Inc. and BioNTech SE which have all reported Phase 1 results from their inoculations.The results were enough for JPMorgan analyst Eric Joseph to raise his rating to overweight from neutral and set a Street high price target of $275. “We’d still caution against reading too concretely across the various CoV2 vaccine datasets,” he wrote in a client note, though its not a stretch to conclude neutralizing antibody activity of NVX-CoV2373 “looks best-in-class.” Five analysts rate Novavax a buy, while one recommends selling the stock.Novavax’s reputation got a boost in early July when the biotechnology company secured a $1.6 billion contract from the U.S. government under Operation Warp Speed. It was the largest U.S. award until a $2.1 billion award to Sanofi and GlaxoSmithKline Plc topped it a few weeks later. A former Glaxo executive, Moncef Slaoui, heads Operation Warp Speed. The program is part a Trump administration push to get a vaccine ready for wide use.The Gaithersburg, Maryland-based company previously said a late-stage study would start in the fall. “We get it, it’s urgent,” Glenn said in a phone interview. The data first need to be filed with the Food and Drug Administration before Novavax can determine if the shot can be moved into late-stage testing any earlier, he said.The results will be submitted to a leading peer-reviewed journal. Novavax is partnered with another Maryland-based company, Emergent Biosolutions Inc., to manufacture its vaccine.(Upates shares in first two paragraphs, adds upgrade in seventh)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.


Key Things To Understand About New Relic's (NYSE:NEWR) CEO Pay Cheque

Top Stories - 5 hours 43 min ago

Lew Cirne became the CEO of New Relic, Inc. (NYSE:NEWR) in 2008, and we think it's a good time to look at the...


Apple Stock Split Fuels Retail-Trader Bets on Further Gains

Top Stories - 5 hours 55 min ago

(Bloomberg) -- Apple Inc.’s planned stock split in the wake of the surge in its shares and strong earnings is stirring more bets on the company, according to TD Ameritrade Holding Corp.Activity in the world’s largest technology company “sticks out” over the past week, a repeat of the pattern seen in previous years when Apple split its stock, Christopher Brankin, chief executive officer of brokerage TD Ameritrade Asia Pte in Singapore, said in an interview Tuesday.“It’s something that we’re seeing across our options here because of that announcement,” he said, referring to the use of derivatives to bet on more gains in Apple shares.The iPhone maker’s quarterly report last week crushed Wall Street expectations amid pandemic demand for its products, and the company announced a four-for-one split for later this month to make its stock more accessible. The stock rose more than 17% over the previous five straight days, though it was down 0.2% to $437.60 as of 9:45 a.m. in New York Wednesday.Signals from the options market are flashing enthusiasm for Apple shares, such as unusually high relative prices for upside bets, according to RBC Capital Markets strategist Amy Wu Silverman.Apple options are pricing in more upside risk versus downside than at any time this year, despite the stock having almost doubled from its mid-March lows, Chris Murphy, derivatives strategist at Susquehanna Financial Group LLLP, wrote in a note Monday. Smaller traders have been a big portion of such bets in recent months, according to Sundial Capital Research Inc.That’s part of a wider fervor for the stay-at-home trade favoring some technology stocks. More than 82,000 users of the U.S. investing app Robinhood.com added Apple to their accounts in some form over the past week, according to website Robintrack.net, which aggregates data from the brokerage but isn’t affiliated with it.(Updates stock move in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.


Moderna Q2 revenue rises amid COVID-19 vaccine development

Top Stories - 5 hours 59 min ago

Yahoo FInance’s Brian Sozzi, Alexis Christoforous, and Emily McCormick discuss the Moderna's recent earnings report.


Getting In Cheap On McKesson Corporation (NYSE:MCK) Might Be Difficult

Top Stories - 7 hours 29 sec ago

With a price-to-earnings (or "P/E") ratio of 29.7x McKesson Corporation (NYSE:MCK) may be sending very bearish signals...


Earnings Tell The Story For Zynex, Inc. (NASDAQ:ZYXI)

Top Stories - 7 hours 24 min ago

With a price-to-earnings (or "P/E") ratio of 54.2x Zynex, Inc. (NASDAQ:ZYXI) may be sending very bearish signals at...


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