Libra Cryptocurrency Project Analysis: Examine Current Regulatory Challenges / Libra 1.0 and its Ecosystem / Response to Date from Global Regulators / Libra 2.0 and The Road Ahead Read full article Research and Markets October 1, 2020, 10:44 AM
Dublin, Oct.01, 2020 (GLOBE NEWSWIRE) — The “An Analysis of the Libra Cryptocurrency Project from a Regulatory Perspective” report has been added to ResearchAndMarkets.com’s offering.
The announcement by Facebook in June 2019 regarding the proposed launch of their cryptocurrency Libra has triggered reactions from across the globe.Whilst the concept of a virtual currency available over a blockchain wasn’t new, the fact that this was being fronted by Facebook made this a completely different ball game.
With close to 2.5 billion users worldwide, it was clear that Facebook’s ambition was to create globally dominant currency, expanding financial services and the associated benefits to corners of the world where they don’t currently exist.
Inevitably, the announcement also generated a considerable amount of nervousness and backlash from central banks and regulators worldwide, the sense being that Libra could destabilise monetary policy and introduce multiple regulatory headaches such as un-detectable money laundering.This was in addition to the already existing data privacy concerns faced by Facebook.What the Report Offers: The report is intended to provide insights into what the entry of Libra might mean for the industry, particularly from a regulatory perspective.The report leverages observations from the wider cryptoassets market to develop insights into what is still a rather complex and unregulated area of financial services.The report analyses the responses from various parts of the world, and also how Facebook has responded since the initial announcement back in June 2019.The report is beneficial to cryptoassets market participants, consumers, regulators as well as any other interested parties such as academic institutions, think-tanks, and consultancies Key Areas Explored in the Report:
Cryptocurrencies: Current regulatory challenges
Understanding Libra 1.0 and its Ecosystem
Analysis of response to date from global regulators
Libra 2.0 and The Road Ahead
Key Topics Covered:
1.
Cryptocurrencies: Current Regulatory Challenges
Brief Introduction to Cryptocurrencies and Blockchain
Monetary Policy and Cryptocurrencies: An Uncomfortable Relationship or an Impossible One?
Anti-Money Laundering Made Tricky
2.Understanding Libra 1.0 and its Eco-System
The Libra Mission – June 2019
What Libra was and wasn’t – a Bitcoin comparison
The Libra Project June 2019 – March 2020
3.The Initial Response from Global Regulators
A Global StableCoin or a Destabilising Currency? The G-20 FSB’s Reaction
Initial Response from the UK and European Regulators – Scepticism but with An Open Mind
Response from the USA, Asia, and Africa
4.Libra 2.0 and The Road Ahead
Changes from Libra 1.0
Challenges and Uncertainties Regarding the Proposed Changes
Summary
For more information about this report visit https://www.researchandmarkets.com/r/camtjs
Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900 TRENDING The carmaker took the wraps off a major operational and management shake-up on its CEO’s first day in the role.TheStreet.com Jim Cramer: You Heard the Ugly of the Debate.Here’s the Good.Remember, Joe Biden happens to be the greatest defense of the status quo, because his administration created Obamacare.
Second, I didn’t hear anything that made me feel that the banks, long-time punching bags of the Democratic party, didn’t even merit a whisper.No wonder that group just ignited with Discover , the credit card company, and the one-time pinata, Goldman Sachs , leading the way.MoneyWise Experts say this advice from the personal finance personality ought to be ignored.MarketWatch ‘You’ll see it as soon as it’s finished,’ President Trump said of his tax returns during the first presidential debate.Investor’s Business Daily Despite being one of the most recognizable wireless carriers in the U.S., AT&T stock has had a rough 2020.But the stock does have some perks.Is it a buy? Barrons.com The stock market is on pace for its worst month since March, though the quarter has been great.What that says about a possible October surprise.
Yahoo Finance New research highlights how Obamacare being overturned would bring a major tax cut for the richest Americans.MarketWatch Half of Americans over 55 may retire poor How badly is COVID-19 hurting Americans on the cusp of retirement? In an interview, economist Teresa Ghilarducci, a professor at The New School in New York City and one of the nation’s leading experts on retirement, told me that half—that’s right, half—of Americans aged 55 and up will retire in poverty or near poverty.80% of older Americans can’t afford to retire – COVID-19 isn’t helping More than 25 million older Americans are financially insecure – living at or below the federal poverty level.Investopedia Tesla (TSLA) Set to Report Third Quarter Metrics Tesla, Inc.
(TSLA) CEO Elon Musk has been busy as a bee since last week’s highly touted “Battery Day” fell flat, dropping the stock more than 10%.The electric vehicle (EV) manufacturer signed a sales agreement with Piedmont Lithium on Wednesday, just one day after a report that plans to mine the substance in Nevada faced “stark obstacles.” Musk then teased Twitter with talk about a Starlink IPO in “several years” just before Walmart Inc.(WMT) tripled its Canadian Tesla Semi order and Tesla announced an 8% drop in China Model 3 prices.Musk saved the best for last, with “familiar sources” telling EV industry portal Electrek last week that Tesla had achieved record delivery volume.USA TODAY USA TODAY reached out to tax attorneys and legal experts to get their reaction to the New York Times report on Trump’s taxes.
Here’s what they said.TipRanks 3 ‘Strong Buy’ Stocks With Dividend Yields of 8% or Better What to make of the markets lately? Early September showed a sharp drop from peak values, but since the eighth of the month – for the past three weeks – volatility has ruled the day.All the major indexes have bouncing up and down without showing a clear trend.
While increased volatility is almost certainly going to stay with us for a while, it’s time to consider defensive stocks.
And that will bring us to dividends.By providing a steady income stream, no matter what the market conditions, a reliable dividend stock provides a pad for your investment portfolio when the share stop appreciating.With this in mind, we’ve used the TipRanks database to pull up three dividend stocks yielding 8% or more.That’s not all they offer, however.Each of these stocks has a Strong Buy rating, and considerable upside potential.Solar Senior Capital (SUNS)The first stock is Solar Senior Capital, an investment management company focused on an externally managed non-diversified portfolio.
SUNS invests in mid-market companies, taking positions in unitranche instruments, secured loans, and first and second lien debt.The company’s investment targets are mid-market firms with below-investment grade credit ratings, and its portfolio is valued at $532.4 million.Solar’s earnings, up to 1Q20, had held steady at 35 cents per share – but that took a sudden dive in the second quarter this year, coming in at 32 cents.That drop came even as the company also reported a solid financial base, with net assets of $249 million and available capital exceeding $210 million.Despite the lower earnings, the quarterly results were sufficient to maintain the dividend.This is paid monthly, at a rate of 10 cents per common share, making the quarterly distribution 30 cents.
This leads to a high payout ratio, but at current earning levels the dividend is sustainable.
The annualized payment, of $1.20, gives a yield of 9.4%, which is more than 4.5x higher than the average dividend yield found among S&P index members.The company has paid out the dividend reliably, no matter the market conditions, since 2011.Covering this stock for Ladenburg, analyst Mickey Schleien rates SUNS a Buy, along with a $15 price target.This target implies an 18% upside for the coming year.
(To watch Schleien’s track record, click here)Supporting his stance, Schleien writes, “…the company’s pipeline is increasing with more compelling opportunities at higher yields.SUNS is operating within the incentive management fee catch-up band, and the external manager continues to waive fees to the extent necessary for NII to cover the dividend through 2020.” The Strong Buy analyst consensus rating on SUNS is unanimous, based on 3 Buy reviews.The stock’s $12.68 trading price and $15.67 average price target give a one-year upside potential of 24%.(See SUNS stock analysis on TipRanks)Barings BDC, Inc.(BBDC)Barings, the next stock on our list, is a busines development corporation.The company provides capital access and asset management for its customers, middle-market companies seeking financing solutions.
Barings invests in debt, equity, and fixed income assets, and boasts over $346 billion in total assets under management.While Barings took a hard hit to revenue in the first quarter, as the corona crisis took hold, the company has seen the top line return to positive numbers in the second quarter.At $56 million, the Q2 revenue was also more than 4x higher than results in the second half of 2019.
Earnings have been stable, with EPS reported between 14 and 16 cents for the past 7 quarters.In another sign of strength, Barings in August completed an agreement to acquire MVC Capital.The deal, which totals $177.5 million in cash and stock, is expected to close in 4Q20 and will create a combined company with an investment portfolio worth more than $1.2 billion.While that move is going forward, BBDC continues to reward shareholders.The company has been gradually growing its quarterly dividend payment for the past two years.The current payout is 16 cents per common share, giving an annualized payment of 64 cents and a robust yield of 8%.Raymond James analyst Robert Dodd notes the importance of the MVC transaction for BBDC: “…we expect that BBDC will recognize a top-line income contributor ‘accretion of purchase discount’ over the life of the MVC portfolio.” Dodd goes on to note that this will have a positive impact on the dividend, writing, “We are projecting a dividend increase following the close of the MVC acquisition.
We believe the dividend could be increased from the current $0.16/share per quarter to $0.17/share in 1Q21.While we believe earnings power will exceed that level, over-coverage is a good thing in our view — and we believe projecting a 90% payout ratio is prudent.”Dodd’s comments back up his Buy rating on the stock.He gives Barings a $9.50 price target, which indicates room for 19% growth over the next 12 months.(To watch Dodd’s track record, click here)Overall, Barings’ Strong Buy consensus rating is held up by 3 recent Buys against a single Hold.The company has an average price target of $9, suggesting a 12.5% upside from the $8.01 trading price.(See BBDC stock analysis on TipRanks)TriplePoint Venture Growth (TPVG)The last stock on our list is another management investment company.
TriplePoint Venture is a venture capital investment firm with a portfolio focused on the tech and life sciences.These are high-growth industries that gobble up cash – but also offer the promise of high returns.TriplePoint’s earnings have been falling off this year from their peak, at 45 cents per share in Q4 of last year, even as revenue as recovered from corona-induced losses in the first quarter.For the second quarter, the top line came in at $23 million, while EPS slipped 7% to 38 cents.Even though earnings are down, they still beat the forecast by 5.5%.However, the company’s dividend payment has been remarkably stable for the past few years.Except for one downward blip in December 2018, the dividend has been consistently paid out at 36 cents per common share per quarter.This gives an annualized payment of $1.44, and a powerful yield of 12.8%.
The high yield, combined with the reliable payment history, make this dividend valuable, especially in a time of near-zero interest rate policy.Christopher York, 4-star analyst with JMP Securities, believes that the recent second quarter results justify an Outperform (i.e.Buy) rating on TPVG, and his $13 price target implies an upside of 16%.(To watch York’s track record, click here)Backing his outlook, York writes, “TPVG remains our favorite BDC idea for those that trade below $500mln in market cap; we find the stock especially attractive for both yield-seeking and value investors […] We continue to believe TriplePoint’s core dividend run-rate of $0.36 is sustainable throughout 2021 and note that the total return requirement in the incentive fee should provide additional support to dividend coverage from any future credit losses.”Overall, Wall Street’s analysts have been nothing but bullish on TPVG over the past three months.Out of 5 analysts who cover the stock, all 5 are bullish.
Meanwhile, their average price target of $13.30 suggests a 19% upside from current levels.
(See TriplePoint’s stock analysis at 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 before making any investment.
Investor’s Business Daily Exxon Mobil’s third-quarter loss may be much worse than feared as the coronavirus pandemic continues to weigh on oil prices.MarketWatch Gone are the days of relying on strong returns for money market accounts and certificates of deposit.Investor’s Business Daily October is unfairly known for jinxes and crashes for the S&P 500.But shares of Microsoft and Apple show much of the fear is overblown.Reuters Ford’s new CEO Farley promises urgency at automaker, shakes up management Ford Motor Co’s
U.S.News & World Report Estate Planning Tips to Keep Your Money in the Family If you’re single and die in 2020, you can have up to $11.58 million in assets before your heirs have to worry about paying a penny in estate taxes.Knowing that, you might assume only the super wealthy need to worry about estate planning.”Estate taxes are only part of it,” says Jeff Bush, president of Informed Family Financial Services in Norristown, Pennsylvania.TipRanks 3 Stocks on J.P.Morgan’s Radar for Over 60% Upside In the final leg of 2020, does the market have what it takes to reach a record high? If you ask J.P.Morgan, the answer is yes.According to strategist Dubravko Lakos-Bujas, the S&P 500’s earnings are bouncing back more quickly than expected thanks to the Federal Reserve’s accommodative monetary policy, global reopenings and long-term tech plays.He argues this earnings trend could power the index’s rally to a record 3,600, reflecting a 6% gain from current levels.Tech is the key here.Although the space has had a rough going recently, the strategist sees the latest pullback as “healthy,” noting that tech names are still relatively insulated from COVID’s economic impact.
Tech profits could also potentially help offset earnings weakness in the broader market.“As for COVID-19 sensitive companies, Q2 likely marked the bottom with earnings to see a sustained recovery as the economy rebounds, and consumer and corporate behavior gradually normalize,” Lakos-Bujas commented.What’s more, the firm expects improving demand and falling interest costs to drive a rebound in S&P 500 companies’ margins, with a full recovery potentially coming by the second half of 2021.Bearing this in mind, we wanted to take a closer look at three stocks that have earned J.P.Morgan’s stamp of approval.Accompanying a bullish rating, the firm’s analysts believe each could climb at least 60% higher in the year ahead.Running the tickers through TipRanks’ database, we got all the details and learned what makes them such compelling plays.PDC Energy (PDCE)First up we have PDC Energy, which is the second largest oil and gas producer in the DJ Basin and has significant scale (182,000 net acres).Based on its standing in the space, J.P.
Morgan is pounding the table on this name.Firm analyst Arun Jayaram sees the company as one of the “positioned operators among the small to mid-cap E&Ps given that it pairs a strong free cash flow profile and relatively clean balance sheet with a cheap multiple.” Out of all the names in the firm’s E&P coverage universe, PDCE trades at the lowest 2021 EBITDA multiple and has the highest free cash flow yield.Additionally, even though Colorado politics presents challenges given that it’s a purple state, or a swing state, the analyst believes these headwinds can be overcome.“In our view, the stock appears to be discounting a significant haircut to its undrilled inventory from regulatory headwinds in Colorado consistent with the implementation of ‘hard’ 2,000 ft.setback rules.While we don’t expect potentially restrictive political measures in Colorado to go away, we see the current ~2.6x discount as too punitive, with just a half turn re-rate providing ~40% upside to shares,” Jayaram commented.The analyst argues that the stock presents investors with a “rare opportunity” to snap up a name at a discount to PDP value.
Shares are currently changing hands for only 73% of Jayaram’s PDP estimates, based on recent strip pricing.“We view this as a compelling risk-reward given the growing likelihood the State could enforce ‘soft’ 2,000 ft.setbacks that would still provide PDCE with the ability to tap the lion’s share of its undrilled DJ Basin inventory, albeit with additional administrative hurdles in the permit process that could modestly raise the cost of doing business,” the analyst stated.It should be noted that PDCE has approximately 400 DUCs or permitted wells in the DJ Basin, which could serve to buffer the operational risk for several years and provide leeway for the company to successfully navigate the changes to the permitting process, in Jayaram’s opinion.With the “significant dislocation from the value of the underlying asset base,” Jayaram gives PDCE a place on J.P.Morgan’s U.S.Equity Analyst Focus List as a value pick.It should come as no surprise, then, that Jayaram sides with the bulls.To this end, he puts an Overweight rating and $23 price target on the stock.
Investors could be pocketing a gain of 93%, should this target be met in the twelve months ahead.(To watch Jayaram’s track record, click here)Are other analysts in agreement? They are.
Only Buy ratings, 11, in fact, have been issued in the last three months.Therefore, the verdict is unanimous: PDCE is a Strong Buy.Given the $21.50 average price target, shares could jump 80% in the next year.
(See PDCE stock analysis on TipRanks)GeoPark (GPRK)Moving on to another player in the energy game, GeoPark is a leading independent oil and gas company with oil and gas assets in Chile, Colombia, Brazil, Peru and Argentina.With a solid asset base in Colombia, which accounts for 81% of its production, J.P.Morgan sees big things in store for this oil play.Writing for the firm, analyst Ricardo Rezende opined: “We recommend GPRK for investors looking for exposure to oil prices…we think the stock reflects long-term oil prices at $50/barrel (bbl), in line with the current the forward curve.” In addition, the company’s portfolio management approach to its assets (operations must be self-funding and prove their value on a standalone basis) and the fact that it recently grouped its operations into two segments, could “help the company rein in costs – an additional positive, especially in a low oil price environment,” according to Rezende.That being said, Rezende argues “most of GeoPark’s current – and future – value lies in its Colombian operations.” Llanos-34, its “best asset”, is located in the country.This asset saw an average production of 26kboed in Q2 2020, with it also holding roughly 71% of net proved reserves.GPRK has made a significant effort to expand its exposure to the areas around Llanos 34, with its holdings in the area now totaling over 1.4 million acres.
As part of these efforts, it acquired five exploration blocks in partnership with Hocol (Ecopetrol), agreed with Parex to assume a 50% working interest in the Llanos 94 block and acquired Amerisur, an independent E&P whose most relevant block (CPO-5) is in the vicinity of Llanos 34.The latter acquisition is the key to the company’s success, in Rezende’s opinion, as it “opened a new exploration region for GeoPark: Putumayo, a region closer to the border with Ecuador.”Expounding on this, the analyst stated, “Llanos 34 and its vicinities, in our view, are much more important drivers to GeoPark’s investment case than any other blocks the company has a stake in.Also, a successful exploration campaign in areas that GeoPark recently incorporated and the ramp-up on CPO-5 are the other relevant triggers in the area.We see production in Colombia reaching 39.8 kbpd in 2023, compared to 28.5kbpd in 2018.”All of this prompted Rezende to rate GPRK an Overweight (i.e.Buy) along with a $16 price target.This target conveys his confidence in GPRK’s ability to soar 119% in the next year.(To watch Rezende’s track record, click here)Looking at the consensus breakdown, 2 Buys and no Holds or Sells have been published in the last three months.Therefore, GPRK gets a Moderate Buy consensus rating.Based on the $13.60 average price target, shares could surge 85% in the next year.
(See GeoPark stock analysis on TipRanks)iTeos Therapeutics (ITOS)Making our way to the healthcare sector, iTeos Therapeutics is focused on the discovery and development of a new generation of highly differentiated immuno-oncology therapeutics.With its development pipeline boasting significant potential, J.P.Morgan thinks that now is the time to get in on the action.Its two lead candidates, EOS-850 (an A2AR antagonist) and EOS-448 (an anti-TIGIT antibody), are targeting key mechanisms of cancer immunosuppression, and are in development alone as well as with other therapeutic combinations.The A2A receptor, a key signaling component within the immunosuppressive ATP-adenosine pathway, has been shown to modulate immune responses in pathological conditions.As for the T-cell immunoreceptors with immunoglobulin (Ig) and ITIM domains (TIGIT) program, it is another receptor that certain cancer types use to sustain tumor growth.Weighing in for J.P.
Morgan, 5-star analyst Anupam Rama wrote: “We acknowledge that development in the adenosine and TIGIT classes are competitive with the likes of multiple large pharma/biotechs and SMID biotechs; that said, we still see iTeos as having multiple value-creating levers with both EOS-850 and EOS-448.”These include the potential for the molecules to differentiate themselves over time within a particular target class.EOS-850 has demonstrated a differentiated PK/PD profile pre-clinically, with early responses looking encouraging.Based on this solid data, a Phase 1/2 trial was initiated for EOS-850 in patients with advanced solid tumors, both as monotherapy and in combination with standard of care therapies.Dose escalation in the combination arms of the study is expected to begin in Q3 2020, and data from the dose expansion monotherapy cohort is expected in 1H21.
Rama sees these readouts as capable of driving major upside.It should also be noted that a new formulation of EOS-850 with improved dissolution properties and good absorption under high pH conditions is expected to be available for a clinical bridging study in Q1 2021, with completion potentially coming in Q2 2021.Assuming a net initial price of $12,000 per cycle of therapy, Rama estimates peak global sales of $2-2.5 billion by 2039.Additionally, EOS-448 has shown high binding affinity and that it actively engages FcyR, based on preclinical data.A Phase 1/2a study is now underway for EOS-448 in patients with advanced solid tumors, and preliminary results from the escalation phase are slated for release in 1H21, another potential catalyst, according to Rama.For this therapy, Rama believes peak sales could land at $3 billion.“From current levels, execution on one product across a few indications or a combination of both products in more select go-forward indications has the potential to create meaningful value (via probability of success increase and/or peak revenue increases),” Rama said.What’s more, both therapies are wholly owned by ITOS, which leaves “the potential for future strategic interest in both assets pending evolution of data,” in Rama’s opinion.On top of this, both assets have shown signals of activity in interesting but less-competitive indications.Everything that ITOS has going for it convinced Rama to keep an Overweight (i.e.Buy) rating on the stock.Along with the call, he attaches a $40 price target, suggesting 61% upside potential.(To watch Rama’s track record, click here)Turning now to the rest of the Street, other analysts echo Rama’s sentiment.
4 Buys and no Holds or Sells add up to a Strong Buy consensus rating.At $45, the average price target is more aggressive than Rama’s and implies 81% upside potential.(See ITOS stock analysis on TipRanks)To find good ideas for 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 before making any investment.FX Empire Dow component Boeing jumped 2.38 in extended-hours trading Wednesday after the FAA chief gave a nod of endorsement to the 737 MAX that has remained grounded since March 2018.
Barrons.com Microsoft, FedEx, Amgen, and AbbVie—among others—came up in our screen for stocks that are inexpensive relative to their industry and are expected to see earnings growth.TipRanks 3 FAANG Stocks That Score a ‘Perfect 10’ In the first week of September, the markets saw a sudden drop from peak values.
That fall was most pronounced in the NASDAQ index, which dropped from 1,200 points – some 10% – in just 5 trading sessions.Since then, however, the situation has stabilized.Stocks have bounced up and down, but the NASDAQ has generally held steady at or near 11,000 for the past three weeks.The holding pattern is likely more important than the slide.
It’s lasted longer, and appears to represent a classic market correction.The NASDAQ’s 5-month run to its September 2 all-time high left it somewhat overvalued, and it’s now fallen back to a more sustainable level.This is borne out by a look at three major components of the index, members of tech’s ‘FAANG’ club.The FAANG stocks are Facebook, Amazon, Apple, Netflix, and Google (Alphabet).They are the 800-pound gorillas of the tech world, companies of enormous size and scope, whose operations and market fluctuations have been a major driver to the NASDAQ, and the overall stock market, in recent years.And three of them have another important point in common, too: each gets a ‘Perfect 10’ rating from the TipRanks Smart Score.The Smart Score rates every stock according to set of 8 factors that have historically correlated with future outperformance, and combines them into a simple 1 to 10 scale to indicate the stock’s likely future course.
Now let’s see why these tech giants scored so highly, and what Wall Street’s analysts have to say about it.Facebook (FB)First on our list is Facebook.The social media giant has spawned both an industry and much controversy in the years since it burst on the scene.
In recent years, Facebook has come under fire for advertising policies, privacy breaches, and accusations of censorship – but none of that has halted the long-term growth of the stock.The company makes its money selling advertising, using AI tracking algorithms to monitor account activity and create perfectly target ads.It’s a system that has introduced us, in less than one generation, to impressions, banner ads, and pay-per-click.It has changed the way we do business online.With the election coming up, Facebook is not shying away from controversial actions.The company has announced that it will ban political ads in the week before election day, as well as censor groups deemed to promote violence or spread false information about the corona pandemic.Intended to be politically neutral, these moves have drawn criticism from side of the political arena.That has not stopped Facebook from raking in the money, however.Earnings did fall 33% sequentially in the first quarter of this year – but that should be put in perspective.
FB’s pattern is to register its best results in Q4 (holiday advertising), and its lowest results in Q1.With that in mind, it’s more important that, during the ‘corona quarter,’ Facebook’s Q1 EPS were up 101% year-over-year.Results in Q2 were almost as impressive, with the $1.80 EPS being up 97% year-to-date.Looking at Facebook’s near-term prospects, 5-star analyst Mark Zgutowicz of Rosenblatt Securities see plenty of reason for optimism.Zgutowicz admits that consumers may develop a ‘spending fatigue’ in the wake of anti-COVID stimulus bills, but “given Facebook’s immense exposure to ecommerce with now 9M active small business advertisers, and the holiday season soon approaching,” the analyst believes “any stimulus spend fatigue will be offset [by] escalating ecommerce trajectory.”In line with these comments, Zgutowicz rates FB a Buy and sets a price target of $325.This target implies room for 24% share appreciation in the next year.
(To watch Zgutowicz’s track record, click here)Overall, Facebook’s Strong Buy consensus rating is based on 38 recent reviews, with a breakdown of 33 Buy, 4 Hold, 1 lonely Sell.The shares are priced at $261.90 and have an average price target of $295.82, suggesting a 13% upside from current levels.(See FB stock analysis on TipRanks)Amazon.com (AMZN)Next up, Amazon, is the market’s second largest publicly traded company, with a market cap of $1.59 trillion and a famously high share price exceeding $3,000.Amazon has proven a master of self-reinvention since the late ‘90s, starting out as an online book seller and surviving the doc.com bubble to become, now, the world’s largest online retailer, where customers can buy everything from buttons to brie, and even books.Looking at Amazon’s performance, the most immediate salient factor is the steady rise in share value over the years.Under Jeff Bezos’ leadership, Amazon does not pay out a dividend or conduct share buybacks; investors benefit solely from share appreciation.And that appreciation has been substantial, especially for long-term investors.
Just in the last five years, the stock has grown over 480%.The company has achieved this growth by taking advantage of every opportunity that comes its way – when it is not inventing those opportunities.The corona crisis was no exception to this pattern; as the social lockdown policies kept people home and closed down stores and shops, Amazon’s service became essential.Customers could order anything, and have it delivered.The company’s 2Q20 revenues reflect this success; coming in at $88.9 billion, they were up 40% year-over-year.
Earnings also showed how Amazon thrived under the new conditions.Q1 results had been in-line with the previous six quarters – but in Q2, EPS jumped to $10.30, far ahead of the $1.74 estimate.In his coverage of Amazon stock, JMP’s 5-star analyst Ronald Josey notes the perfect fit of the company and the times.“The COVID-19 pandemic has clearly pulled forward eCommerce adoption by at least three years, in our view, and Amazon’s investment in its product selection and delivery network—which continues to improve—was on display this quarter.
Beginning in mid-April, demand expanded beyond essentials to a more normalized mix of hardlines and softlines, and newer services like grocery delivery tripled.Overall, we believe 2Q’s execution and ability to launch newer products and services highlights Amazon’s strength as an organization,” Josey opined.Josey rates Amazon as Outperform (i.e.Buy), and his price target, at an eye-opening $4,075, suggests 29% growth for the next 12 months.(To watch Josey’s track record, click here)Overall, the Strong Buy consensus rating on Amazon is, unsurprisingly, unanimous, based on no fewer than 37 positive reviews.The share price comes in at $3,149, and the average price target of $3,732 implies an 18.5% one-year upside potential.(See AMZN stock analysis on TipRanks)Apple, Inc.
(AAPL)And now we come to Apple, the single largest component of the NASDAQ, making up over 13% of the index by weight.It is also the largest publicly traded company in the world.Two years ago, in summer 2018, Apple was the first company to ever exceed $1 trillion in market cap, and earlier this year, Apple broke above $2 trillion.The company is currently valued at $1.98 trillion.A big advantage for Apple, as the corona crisis took hold, was that the company had entered 2020 on the heels of record-breaking fourth quarter results.Apple’s Q4s are typically the company’s best, boosted, by holiday sales, and 4Q19 gave Apple a financial kick right before the sales depression of 1Q20 hit.By 2Q20, Apple’s EPS was down to just 64 cents, well below the $2.03 forecast.
Revenues, however, remained at $60 billion, roughly in-line with Apple’s historic mid-year quarterly performance.Looking ahead, Apple has at least two more major advantages going forward.First, the company will be releasing its 5G-compatible iPhone 12 line this fall.And second, at least one-third of Apple’s installed iPhone user base will be entering the natural device replacement cycle over the next year.JPMorgan analyst Samik Chatterjee reviewed Apple, and sums all of the above in clear prose: “…investors have widely acknowledged the rich valuation of AAPL shares.While the $2 trn market cap valuation in itself is a significant milestone, that AAPL shares crossed it in a year with significant COVID-19 disruption testifies to the recurring nature of not only its Services, but also its Products, such that investors are now willing to pay a Services-like premium on the entire earnings stream and a modest premium on account of expectations for further revenue/earnings upside.
While we acknowledge that the valuation is no longer an easy entry point into the shares, at the same time, potential upside revenue/earnings drivers as well as upcoming catalysts will make it difficult for investors to step away from the shares.”To this end, Chatterjee puts a $150 price tag on AAPL shares, implying an upside of 29% and backing his Overweight (i.e.Buy) rating.
(To watch Chatterjee’s track record, click here)All in all, Apple holds a Moderate Buy rating from the analyst consensus, with 35 reviews breaking down to 24 Buys, 8 Holds, and 3 Sells.The shares are selling for $115.81 and have an average price target of $122.04.This suggests a modest 5.5% upside from current levels.
(See Apple stock analysis at TipRanks)To find good ideas for tech 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.
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