Leverage, better to say financial leverage, indicates the degree to which a company utilizes debt to boost its operations and thereby earn escalated profit margins. However, the higher the degree of financial leverage, higher is the interest payment for the capital borrowed.
Nevertheless, this should not dissuade companies from adopting debt financing as a strategy, because after all debt comes cheaper when compared to equity. Still, debt is something that gives you the chills since it brings with it the burden of repayment with additional interest in the future.
In corporate finance, as long as companies successfully generate higher returns than the interest they need to pay, they remain safe havens for investors. But the problem arises when the level of debt a company bears exceeds the return it offers.
Especially, in times of crisis no one can be fully sure of how a company will perform the next day, and on top of that those bearing large amount of debt are even more prone to bankruptcy. Therefore, the debt level of a company is an important point of consideration while making a investment decision.
Top Cheap Stocks To Own Right Now: Emerson Electric Company(EMR)
- [By Logan Wallace]
D.A. Davidson & CO. lifted its position in shares of Emerson Electric (NYSE:EMR) by 1.3% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 574,584 shares of the industrial products company’s stock after buying an additional 7,640 shares during the period. Emerson Electric makes up about 0.8% of D.A. Davidson & CO.’s holdings, making the stock its 25th biggest holding. D.A. Davidson & CO.’s holdings in Emerson Electric were worth $39,244,000 at the end of the most recent reporting period.
- [By Lee Samaha]
Heating, ventilation and air conditioning (HVAC) company Ingersoll-Rand PLC (NYSE:IR) is a better stock to buy than process automation company Emerson Electric (NYSE:EMR), but that doesn’t mean the latter isn’t also compelling. Both stocks offer strong free cash flow generations, healthy dividend yields, and attractive valuations. Let’s take a look at the two businesses, and see just why Ingersoll-Rand edges out its fellow electrical equipment company.
- [By Ethan Ryder]
Cullen Frost Bankers Inc. reduced its stake in Emerson Electric Co. (NYSE:EMR) by 4.2% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 80,915 shares of the industrial products company’s stock after selling 3,534 shares during the quarter. Cullen Frost Bankers Inc.’s holdings in Emerson Electric were worth $5,527,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
- [By Lee Samaha]
Indeed, companies like Caterpillar (NYSE:CAT) and Emerson Electric (NYSE:EMR) are seeing increased demand for their capital equipment. Emerson’s process-automation orders are growing strongly as its heavy-industry customers are spending again, while Caterpillar’s sales in the resource industries segment may well be in the early innings of a multiyear upcycle.
- [By Shane Hupp]
Emerson Electric (NYSE:EMR)‘s stock had its “buy” rating reissued by Cowen in a research note issued on Wednesday. They presently have a $81.00 target price on the industrial products company’s stock. Cowen’s price target points to a potential upside of 3.30% from the company’s current price.
- [By Benzinga News Desk]
Former President George H.W. Bush has been hospitalized in Houston with an infection, just after attending the funeral of his wife, Barbara, a spokesman said Monday: Link
Redbook Reports US Retail Sales During First 2 Weeks Of Apr. Up 0.3% MoM, Up 2.8% YoY
USA S&P/CaseShiller House Price Index (MoM) for Feb Up 0.7% MoM
New home sales report for March will be released at 10:00 a.m. ET.
The Conference Board’s consumer sentiment index for April is schedule for release at 10:00 a.m. ET.
The Richmond Fed manufacturing index for April will be released at 10:00 a.m. ET.
The Treasury is set to auction 4-and 52-week bills at 11:30 a.m. ET.
The Treasury will auction 2-year notes at 1:00 p.m. ET.
Leerink upgraded Cardinal Health (NYSE: CAH) from Market Perform to Outperform
Berenberg upgraded Emerson Electric (NYSE: EMR) from Sell to Hold
Mizuho downgraded Skyworks (NASDAQ: SWKS) from Buy to Neutral
BMO downgraded Texas Roadhouse (NASDAQ: TXRH) from Outperform to Market Perform
This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here.
Top Cheap Stocks To Own Right Now: Express-1 Expedited Solutions Inc.(XPO)
- [By Rich Smith]
XPO Logistics (NYSE:XPO) stock fell steeply in Friday trading after reporting a big “earnings miss” Thursday evening, closing the day down 13.2%
XPO said it earned $0.72 per share pro forma in the fourth quarter of 2018 and only $0.62 per share GAAP. Analysts, who usually give their estimates in pro forma form, had predicted the transportation and logistics company would earn $0.83 per share.
- [By Steve Symington, Jeremy Bowman, and Demitrios Kalogeropoulos]
So we asked that question to three top Motley Fool investors. Read on to learn why they put New Relic (NYSE:NEWR), XPO Logistics (NYSE:XPO), and Ebay (NASDAQ:EBAY) on their short lists of stocks capable of outperforming a five-bagger.
- [By Shane Hupp]
XPO Logistics (NYSE:XPO) was downgraded by ValuEngine from a “strong-buy” rating to a “buy” rating in a research report issued on Friday.
- [By Stephan Byrd]
Shares of XPO Logistics Inc (NYSE:XPO) have earned a consensus rating of “Buy” from the twenty brokerages that are covering the firm, Marketbeat.com reports. Four research analysts have rated the stock with a hold recommendation, fifteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $110.49.
- [By Matthew Frankel, Neha Chamaria, and Matthew DiLallo]
While there’s no way to know for sure which stocks will become the next Amazon, three of our contributors think BofI Holding (NASDAQ:BOFI), XPO Logistics (NYSE:XPO), and iQiyi (NASDAQ:IQ) have pretty good chances.
- [By Jeremy Bowman]
Somebody’s got to deliver all of those products that we’re ordering online, and increasingly, that somebody is XPO Logistics (NYSE:XPO). The freight and logistics company has become the leader in last-mile delivery of heavy goods like furniture and appliances, making it a key partner of retailers like Amazon, IKEA, Wayfair, and Home Depot.
Top Cheap Stocks To Own Right Now: International Business Machines Corporation(IBM)
- [By Matthew Frankel]
To illustrate some of these points, as well as some other reasons Buffett and the rest of Berkshire’s team may be inclined to sell stocks, here are a few examples from the company’s history:
IBM (NYSE:IBM): Berkshire had been gradually unloading its IBM stake for some time, and Buffett confirmed that the last of the shares were sold during the first quarter of 2018. In a nutshell, Buffett says he misjudged IBM’s competitive challenges, and as a result, it has revalued the stock lower. This is a prime example of the concept of “when your original thesis no longer applies, get out.” Wells Fargo (NYSE:WFC): Berkshire has sold some of its Wells Fargo stock in recent quarters, and you might assume it has something to do with the bank’s infamous “fake accounts” scandal. But you’d be wrong. Buffett has said several times that he intends to stick with Wells Fargo, but regulatory rules prevent him from owning more than 10% of the bank’s shares. The recent sales were solely to remain under that threshold. Freddie Mac (NASDAQOTH:FMCC): Many newer Berkshire investors are surprised to hear that Buffett was ever a fan of mortgage giant Freddie Mac, but Berkshire owned 9% of the company’s shares in the late 1990s. Berkshire made lots of money on the investment, but Buffett started to see troubling signs — specifically, the company was taking on far too much risk to keep its earnings growing at a double-digit rate. Buffett ended up selling all of Berkshire’s Freddie Mac shares by 2000, and we all know what happened during the mortgage meltdown — there’s a reason Freddie Mac is a penny stock today. ExxonMobil (NYSE:XOM): Until late 2014, Berkshire was one of ExxonMobil’s largest shareholders. However, Buffett realized that oil prices weren’t likely to stay as high as he originally thought, so Berkshire’s entire stake was abruptly sold. Goldman Sachs (NYSE:GS): Warren Buffett’s preferred uses for Berkshire Hathaway’s capital are to acquire entire businesses and buy common
- [By ]
The Power Of Growth
Artificial intelligence is already bringing changes to several key sectors of the economy. In health care, it will change the way our health is diagnosed, and our health care distributed. For example, tech giant International Business Machines (NYSE: IBM) recently purchased four health companies that work in diabetes care. Together, these companies give IBM access to over 300 million clinical records that it will analyze, using AI and machine learning, to not only improve diabetes care but to potentially find a cure.
- [By ]
Here’s everything you must know before Wednesday’s opening bell:
IBM (IBM) said revenue for the three months ended in March rose 5% to just more than $19 billion. A preliminary examination of the blown jet engine of a Southwest Airlines (LUV) reportedly showed evidence of ‘metal fatigue.’ CSX (CSX) reported a top-and bottom-line beat for the first quarter, driven by lower costs and restructuring expenses. The IRS is giving taxpayers an extra day to file due to major outages on its website yesterday. U.S. stock futures pointed modestly higher on a strong beginning to corporate earnings season.
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Top Cheap Stocks To Own Right Now: UnitedHealth Group Incorporated(UNH)
- [By Stephan Byrd]
Get a free copy of the Zacks research report on UnitedHealth Group (UNH)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Garrett Baldwin]
Let’s talk the top news in the marijuana industry today… including four stocks that could surge up to 1,000% during this election year. Here’s what you need to know…
The Top Stock Market Stories for Tuesday
Goldman Sachs Group Inc. (NYSE: GS) is leading a busy day of earnings reports on Tuesday. Shares are off 0.4% after the firm despite reporting a 40% year-over-year jump in profits and stronger-than-expected revenue. The firm reported earnings per share (EPS) of $5.98 on top of $9.40 billion in revenue. The Wall Street giant was expected to report EPS of $4.67 on top of $8.71 billion in revenue. The investment bank’s first six months of 2018 were its strongest in nine years. The stock slipped after the company announced that president David Solomon will be replacing CEO Lloyd Blankfein when he steps down from his role. Blankfein has been CEO for 12 years. It’s fair to say that Amazon.com Inc. (Nasdaq: AMZN) went to the dogs on Monday. The company has extended its Prime Day promotion through 3 a.m. on Wednesday. The announcement came after the firm suffered significant outages during the start of the event on Monday afternoon. Rather than get access to deals, many customers were met with pictures of dogs, the firm’s standard error page. Finally, pay close attention to events on Capitol Hill on Tuesday. The U.S. House Judiciary Committee will question leaders of Alphabet Inc. (Nasdaq: GOOGL), Twitter Inc. (NYSE: TWTR), and Facebook Inc. (Nasdaq: FB) about how they store and filter user content. Last year, the Senate and House of Representatives slammed the companies for their roles in and responses to Russia’s interference in the 2016 election.
Three Stocks to Watch Today: CSX, NFLX, KKR
CSX Corp. (Nasdaq: CSX) will help lead today’s earnings calendar. Wall Street expects that the company will report EPS of $0.86 on top of $2.98 billion in revenue. Shares of Netflix Inc. (Nasdaq: NFLX) slipped after the firm’s user-growth estimates and quart
- [By Joseph Griffin]
New York State Teachers Retirement System reduced its stake in UnitedHealth Group Inc (NYSE:UNH) by 3.0% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,502,299 shares of the healthcare conglomerate’s stock after selling 46,038 shares during the period. UnitedHealth Group comprises 1.1% of New York State Teachers Retirement System’s investment portfolio, making the stock its 12th largest position. New York State Teachers Retirement System owned 0.16% of UnitedHealth Group worth $374,253,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
- [By Joseph Griffin]
Traders sold shares of UnitedHealth Group (NYSE:UNH) on strength during trading on Wednesday. $83.82 million flowed into the stock on the tick-up and $145.51 million flowed out of the stock on the tick-down, for a money net flow of $61.69 million out of the stock. Of all companies tracked, UnitedHealth Group had the 16th highest net out-flow for the day. UnitedHealth Group traded up $2.22 for the day and closed at $241.72
- [By Paul Ausick]
The Dow stock posting the largest daily percentage gain ahead of the close Monday was UnitedHealth Group Inc. (NYSE: UNH) which traded up 3.19% at $231.43. The stock’s 52-week range is $164.96 to $250.79. Volume was about 20% lower than the daily average of around 4 million shares. The company had no specific news, but is set to report earnings before markets open Tuesday morning.
- [By Paul Ausick]
UnitedHealth Group Inc. (NYSE: UNH) traded up 2.46% at $238.63. The stock’s 52-week range is $156.09 to $238.95, a new 52-week high set this afternoon. Volume was about 33% above the daily average of around 3 million shares. The company had no specific news Wednesday.