Tag Archives: t

Best Low Price Stocks To Invest In 2018

Source: ThinkstockUntil about 2008 or so, discussion about the future price of crude oil was directed by the concept of peak oil. That is, when does the world reach peak production, after which the price of crude will skyrocket. In less than a decade, the discussion is now focused on the concept of “peak demand,” the point at which global demand for crude begins to decline.

The recent Oil & Money conference in London sharpened the focus on peak demand. Saudi Arabia’s minister of energy and industry, Khalid Al-Falih, told conference attendees that cutbacks in capital spending on exploration, forced on the industry by low prices for the past twoyears, could mean that shortfalls in supply are coming.

Exxon Mobil Corp. (NYSE: XOM) CEO Rex Tillerson disagreed:

Best Low Price Stocks To Invest In 2018: Vanda Pharmaceuticals Inc.(VNDA)

Advisors’ Opinion:

  • [By Roberto Pedone]

    Another biotechnology player that looks poised to trigger a big breakout trade is Vanda Pharmaceuticals (VNDA), which is focused on the development and commercialization of clinical-stage drug candidates for central nervous system disorders. This stock has been on fire so far in 2013, with shares up a whopping 258%.

    If you take a look at the chart for Vanda Pharmaceuticals, you’ll notice that this stock has recently broke out above some near-term overhead resistance levels at $12.34 to $12.66 a share with solid upside volume. So far, this breakout has held and now shares of VNDA are quickly moving within range of triggering an even bigger breakout trade.

    Traders should now look for long-biased trades in VNDA if it manages to break out above its 52-week high at $13.30 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action 908,467 shares. If that breakout hits soon, then VNDA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $17 a share.

    Traders can look to buy VNDA off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $12 a share. One could also buy VNDA off strength once it takes out $13.30 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Best Low Price Stocks To Invest In 2018: LendingClub Corporation(LC)

Advisors’ Opinion:

  • [By Mark Balson]

    Lending Club’s (LC) acting CEO Scott Sanborn replies to company’s investors and assures that company is in strong financial position and enough cash flow in balance sheet. “Cash and securities amount to $868 million.” He replies.

    Scott Sanborn also ensured company’s investors through e-mail who buys company’s loans, “We plan to be around for many years.”

    But as per company’s website Leading Club’s loan investors, “May not receive full amount, if it goes out of business.” Or could see delayed payments. 

  • [By Lisa Levin]

    LendingClub Corp (NYSE: LC) shares dropped 14 percent to $3.66 following weak Q4 and FY18 guidance.

    Shares of Duluth Holdings Inc (NASDAQ: DLTH) were down 16 percent to $16.20 after the company posted downbeat Q3 results.

Best Low Price Stocks To Invest In 2018: Clarke(t)

Advisors’ Opinion:

  • [By Laurie Kulikowski]

    T’s revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue does not appear to have trickled down to the company’s bottom line, displayed by a decline in earnings per share.

     

  • [By WWW.KIPLINGER.COM]

    If youre looking at dividend stocks, then you cant ignore the telecommunications sector. Once you do, youve got to put AT&T Inc. (T) on the list too.

  • [By Craig Jones]

    On CNBC's "Fast Money Halftime Report", Pete Najarian spoke about unusually high options activity in Walgreens Boots Alliance Inc (NASDAQ: WBA) and AT&T Inc. (NYSE: T).

  • [By Adam Levy]

    As more consumers cut the cord, competition in the pay-TV industry is growing increasingly fierce. That’s led some companies to seek consolidating acquisitions like AT&T (NYSE:T) did last year by buying DIRECTV. Others, meanwhile, have sought to attract subscribers with low-priced bundles and over-the-top packages like DISH Network’s (NASDAQ:DISH) Sling TV.

  • [By ]

    2. Verizon Communications (NYSE: VZ) — The top U.S. wireless telecom, with 149 million subscribers, Verizon has also managed to grow its digital content business, albeit quietly when compared to its acquisition-junkie rival AT&T (NYSE: T). Recently, the company has built a top brand portfolio of digital properties that include AOL and Yahoo as well as their attached email platforms. The end result will be a decent media offering with much lower acquisition costs, allowing its precious cash to be spent on its core wireless telecom business. VZ shares are priced at $47.45 with an attractive 5.0% dividend yield.

SA Interview: Merger Arb Investing With Uncorrelated Returns

Uncorrelated Returns manages a global long/short equity hedge fund with particular focus on special situations. We emailed with Uncorrelated Returns about bitcoin, the AT&T (NYSE:T)/Time Warner (NYSE:TWX) deal and an emerging markets internet pair trade.

Seeking Alpha: You focus on special situations in your long/short fund – as special situations investing has been discussed a lot recently in the PRO Weekly Digest, what are examples of the special situations you focus on and more importantly how do you identify and evaluate them?

Uncorrelated Returns: I define special situations in my fund as stocks where mispricing exists because of a specific catalyst or company specific complexity. That means I look at things like merger arbitrage, spin-offs, post-merger integration plays and holding company arbitrage. My mandate is global, so I invest in situations in Europe and Asia as well as the U.S. Given the defined parameters of what Im looking for, I get a steady flow of new ideas from the sell-side, my Bloomberg terminal, Seeking Alpha and a variety of Google alerts.

For merger arbitrage, the potential upside is typically known, so Im evaluating primarily the likelihood of a deal closing, and the downside risk in the event it doesnt. For the former, my starting point is historical precedent, but that is augmented by research into the specific risks (e.g., regulators, CFIUS, shareholder votes) and an assessment of what the potential decision algorithm for each stakeholder is likely to be. Without trying to be overly specific, I try and translate this qualitative judgement into a quantitative probability of closure.

In determining the downside risk (and I follow a similar process with spin-offs etc.), Im really trying to answer the question of what the business is worth on a standalone basis. So I do as much reading as I can on each business to develop a mental model of the economics of the business, its competitive positioning and earnings power. Based on my expectation of earnings, I assign an appropriate valuation multiple to get to a target price. For shorter horizon trades, I tend to lean towards peer valuation multiples, while for longer horizons I might augment this with DCF-type models.

The market is generally pretty efficient, so Ill pull the trigger on an idea only when Im comfortable that there is sufficient reward on offer relative to the risk Im assuming.

SA: Prior to managing a hedge fund you were a highly rated sell-side analyst – how is the buy-side different than the sell-side? What were the best lessons you learned on the sell-side? What do you not miss about it?

UR: The core discipline of researching and valuing a business is the same. However, on the buy-side I have a much greater breadth of coverage (vs. a single sector to follow as an analyst), which by implication means that I cant have the depth of knowledge on every situation that I would have had on the sell-side. Possibly the biggest difference is the level of emotional investment required – as a fund manager I am living and breathing my portfolio constantly, and in my experience its a lot more difficult to switch off than when I was on the sell-side. The upside is I dont have to deal with some of the drudgery of working for a large bank, and dont have to spend as much of my day on the phone marketing my views. I miss writing though, so Seeking Alpha is a bit of an outlet for me!

SA: You made an excellent call on Brocade (NASDAQ:BRCD) – can you discuss your approach to merger arb? How do you narrow down the entire universe of pending deals to a smaller number that you look at more in-depth and finally to a few that you actually act on? How do you evaluate/reduce risk and size positions?

UR: I look at a global universe of announced mergers and acquisitions as my starting point, and quite simply prioritize my research according to the absolute and annualized return embedded in the spread (i.e. the difference between the market price and the transaction price). Typically I gravitate towards deals with double-digit annualized returns. Im happy to trade off duration for higher absolute returns, because the smaller the absolute return the more sensitive the trade is to execution risks.

For most of the deals Im invested in its pretty clear exactly what the key risk is – for instance, for Brocade it was obtaining CFIUS clearance. It would be na茂ve to think one could underwrite these risks with decimal point specificity, so one approach I often take is to back what the market is implying the probability of closure to be, and then subjectively test that for reasonableness. In the Brocade example, I estimated that the market was assigning less that a 2/3rds chance of the deal being completed, which intuitively felt too low to me given all the facts at hand.

Using my own estimates for downside risk and likelihood of deal completion, I calculate an expected value, or probability weighted price. If the expected value is sufficiently higher than the market price, Im happy to invest.

I size my positions using a proprietary formula that primarily uses the expected downside on a deal break to cap my potential loss per position but weighted for the likelihood of the deal closing.

SA: As a follow up, does the DoJ suit create an opportunity in the AT&T/Time Warner deal or is this a legitimate threat to it closing?

UR: It would be na茂ve to suggest a suit by the DoJ is not a material threat to any deal! Nevertheless, I like the risk/reward on TWX. At current levels there is about 18% upside if the deal closes, or 37% annualized if it closes in the middle of the year. The downside risk in my view is hardly overwhelming – TWX will likely earn around $6.50 in 2018; peers like DIS, FOX, CBS and CMCSA trade between 12x and 19x P/E multiples. While not a perfect comparison, putting TWX on a fairly conservative 13x multiple puts the break price at $85, around 6% lower than today. The market is therefore assigning a 1 in 4 chance of the deal completing. Despite its size and political angle, this is a vertical merger with no precedent for being blocked. Im not a lawyer, but my laymans view is that AT&T has a very strong case, and the likelihood of prevailing is significantly higher than 25%. I am long TWX.

SA: Can you walk us through your emerging markets internet pair trade involving Naspers (OTCPK:NPSNY) and Tencent (OTCPK:TCEHY) and how it could generate superior risk-adjusted returns?

UR: Naspers owns 33% of Tencent, the Chinese internet juggernaut. With the massive rally in large cap tech stocks this year, the Naspers share price has struggled to keep up with the gain in Tencent, and as a result trades at close to a 40% discount to the value of its Tencent stake. The rest of the business – a high-quality portfolio of media and internet assets that I believe are worth around $18bn – is valued at negative $40bn. Unlike Altabas (NASDAQ:AABA) holding of Alibaba (NYSE:BABA), there is no material tax leakage to consider for Naspers, so the discount is wildly excessive. The key driver for the discount is technical in nature – a combination of capital outflows from South Africa and significant index reweighting has weighed on Naspers relative to Tencent this year; looking ahead these technical flows should dissipate at a time when the stub assets start to deliver earnings growth ahead of Tencent. I believe this combination of factors should drive a relative rerating of Naspers over the next year. While Im a believer in Tencent, clearly its share performance is correlated with the FANG stocks, and hence the market; a pair trade is likely to be uncorrelated, and should the FANGs roll over, will likely do even better.

SA: What are your thoughts on Bitcoin, especially as now investors can trade futures (and more efficiently express a long or short view)?

UR: With the exception of illicit trade and circumventing foreign exchange controls in emerging markets, Bitcoin strikes me as a solution in search of a problem. The futures market may help dampen some of the volatility weve seen, but its early days. There are a lot of new buyers of Bitcoin purchasing purely on the fear of missing out. I have no view on when the bubble will burst or how high it will soar before it does, but certainly I see no fundamental reason to own any.

SA: Whats one of your highest conviction ideas right now?

UR: I still like Sky (OTCQX:SKYAY), the British satellite TV operator that is being bought by Fox. The stock has appreciated by 10% since I first wrote about it, but still offers a double-digit IRR. The deal is being reviewed by the Competition and Markets Authority in the UK to determine firstly whether Fox would be a fit and proper holder of a broadcast license, and secondly whether ownership limits in the news media would be compromised (given the Murdochs ownership of UK newspapers through News Corporation (NASDAQ:NWS) (NASDAQ:NWSA). On both of these points we remain confident that the deal will clear.

Whats changed since my article is Disneys announced acquisition of Fox. Foxs offer for Sky is unaffected, but should it fail (and Disney completes the Fox deal), a mandatory offer from Disney for Sky will be triggered. So either way, the deal gets done. While the CMA will review the current deal on its existing merits, having Disney in the background removes much of the political heat for the Culture Secretary, so reduces the likelihood of political interference in the process. So the original deal is still attractive, and the presence of Disney provides a credible backstop.

***

Thanks to Uncorrelated Returns for the interview. If you’d like to check out or follow their work, you can find the profile here.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Check with individual articles or authors mentioned for their positions. Uncorrelated Returns is long Sky and TWX.

SeekingAlphaAbout this article:ExpandAuthor payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500.Tagged: Investing Ideas, Long Ideas, Services, CATV Systems, Editors’ Picks, Interviews, United KingdomWant to share your opinion on this article? Add a comment.Disagree with this article? Submit your own.To report a factual error in this article, click here

investing 101

NXP: The Gamble you love to take: Black you win, Red you win in the longer term, Green you get your money back

NXP Semiconductors (NASDAQ:NXPI) investors stand a chance to win in all scenarios in the long run

We took a look at NXP Semiconductors (NXPI) back in March. We like the company a lot and we particularly like the fact that it is a key player in the fastest growth sectors of the semiconductor market. When the Qualcomm (NASDAQ:QCOM) acquisition for NXP was announced in September at around a 30% premium to the then trading price, it looked like a decent deal for shareholders. The share price, rightly, jumped within a few percentage points of the target $110 price.

investing 101: AECOM(ACM)

Advisors’ Opinion:

  • [By Rafi Farber]

    Jack of all trades infrastructure firm AECOM (NYSE: ACM) closed at $27.88 the afternoon everyone thought it would be Clinton by a landslide. Since then, the stock has exploded by 35%. Runs like this for AECOM, while extreme, are not unheard of, as a long-term chart shows quite heavy volatility going back to 2007.

  • [By Lisa Levin] Companies Reporting Before The Bell
    Tyson Foods, Inc. (NYSE: TSN) is expected to report quarterly earnings at $1.38 per share on revenue of $9.86 billion.
    Aecom (NYSE: ACM) is projected to report quarterly earnings at $0.71 per share on revenue of $4.67 billion.
    JD.Com Inc(ADR) (NASDAQ: JD) is estimated to report quarterly earnings at $0.11 per share on revenue of $12.60 billion.
    58.com Inc (ADR) (NYSE: WUBA) is projected to report quarterly earnings at $0.28 per share on revenue of $383.60 million.
    Kamada Ltd (NASDAQ: KMDA) is expected to report quarterly earnings at $0.02 per share on revenue of $25.00 million.
    Palatin Technologies, Inc. (NYSE: PTN) is projected to report quarterly earnings at $0.06 per share on revenue of $28.00 million.
    TheStreet, Inc. (NASDAQ: TST) is estimated to report a quarterly loss at $0.02 per share on revenue of $15.81 million.
    Atlantica Yield PLC (NASDAQ: ABY) is projected to report quarterly earnings at $0.45 per share on revenue of $290.80 million.
    Asure Software Inc (NASDAQ: ASUR) is estimated to report quarterly earnings at $0.15 per share on revenue of $15.26 million.
    Cyren Ltd (NASDAQ: CYRN) is expected to report quarterly loss at $0.06 per share on revenue of $7.90 million.
    Viewray Inc (NASDAQ: VRAY) is estimated to report quarterly loss at $0.12 per share on revenue of $18.58 million.

     

  • [By Jon C. Ogg]

    AECOM (NYSE: ACM) offers architecture and engineering design services and operates through three segments: Design and Consulting Services, Construction Services, and Management Services. It services the transportation, environmental and energy sectors, and it also serves key infrastructure projects such as highways, airports, bridges, wastewater facilities and power transmission and distribution. This puts AECOM right in the major infrastructure investing crosshairs for what you can expect ahead.

investing 101: Clarke(t)

Advisors’ Opinion:

  • [By Laurie Kulikowski]

    T’s revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue does not appear to have trickled down to the company’s bottom line, displayed by a decline in earnings per share.

     

  • [By Jim Robertson]

    DirecTV is a direct broadcast satellite service provider and is a subsidiary of AT&T Inc (NYSE: T). Its satellite service, launched on June 17, 1994, transmits digital satellite television and audio to households in the United States, Latin America and the Caribbean withprimary competitorsbeing Dish Network and cable television providers. On July 24, 2015, after receiving approval from the FCC and United States Department of Justice, AT&T acquired DirecTV in a transaction valued at $48.5 billion. DirecTV would be paying$1.5 billion a year for the NFL Sunday Ticket.AT&T’s shares may have broken out of a downtrend:

  • [By Elizabeth Balboa]

    It’s happened to AT&T Inc. (NYSE: T). It’s happened to Citigroup Inc (NYSE: C). It’s happened to Chevron Corporation (NYSE: CVX), General Motors Company (NYSE: GM) and Sears Holdings Corp (NASDAQ: SHLD)'s predecessor Sears, Roebuck & Co.

  • [By Brian Feroldi, Dan Caplinger, Rich Duprey, Jason Hall, and Jordan Wathen]

    In order to point you in the right direction, we asked a team of Fools to highlight a dividend stock that they feel is a great stock for a beginner. Read on to see why they picked AT&T (NYSE:T),Apple (NASDAQ:AAPL),Anheuser-Busch InBev(NYSE:BUD), Mastercard(NYSE:MA), andJPMorgan Chase(NYSE:JPM).

  • [By Chris Lange]

    AT&T Inc.’s (NYSE: T) second-quarter results are scheduled for Tuesday. The consensus earnings estimate is $0.74 per share, on $39.82 billion in revenue. The shares were last seen at $36.51. The consensus price target is $40.27, and the 52-week trading range is $35.81 to $43.50.

investing 101: American Assets Trust, Inc.(AAT)

Advisors’ Opinion:

  • [By Markus Aarnio]

    Owens Realty Mortgage’s competitors include American Assets Trust (AAT), Alexandria Real Estate Equities (ARE) and Boston Properties (BXP). American Assets Trust has seen five insider buy transactions and four insider sell transactions this year. American Assets Trust has a dividend yield of 2.78%. Alexandria Real Estate Equities has seen 14 insider sell transactions this year. Alexandria Real Estate Equities has a dividend yield of 4.10%. Boston Properties has seen one insider buy transaction and four insider sell transactions this year. Boston Properties has a dividend yield of 2.43%.

investing 101: Granite Construction Incorporated(GVA)

Advisors’ Opinion:

  • [By Dan Caplinger]

    Despite a lack of conviction in the market at large, some stocks posted sharp gains on Friday, and Diana Shipping (NYSE:DSX), Akorn (NASDAQ:AKRX), and Granite Construction (NYSE:GVA) were among the best performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so well.

  • [By David Zeiler]

    Construction stocks Fluor (NYSE: FLR) and Granite Construction Inc. (NYSE: GVA) both rose about 8%; Vulcan Materials Co. (NYSE: VMC) jumped nearly 10%.

investing 101: CRH Medical Corporation(CRHM)

Advisors’ Opinion:

  • [By Lisa Levin]

    CRH Medical Corp (NYSE: CRHM) was down, falling around 31 percent to $2.55 after the company disclosed financial and operating results for the quarter and six months ended June 30, 2017.

Dividend Monster AT&T Inc. Is Nearing Major Resistance

AT&T Inc. (NYSE:T) has been on fire, rallying over 15% since November 1. However, T stock price is still down more than 9% so far for 2017. So is it time to get in on this recent momentum or take a pass on the telecom giant?

Let’s look at the chart first.

Trading T Stock Price

AT&T certainly has positives, but its chart is anything but pretty. T stock price made a bullish move when it was able to reclaim the $35 mark. Above that and it was a reasonable long. However, now pushing into the $39 level, T stock enters some serious resistance.

Chart of T stock priceinvestorplace.com/wp-content/uploads/2017/12/T-768×574.png 768w, investorplace.com/wp-content/uploads/2017/12/T-40×30.png 40w, investorplace.com/wp-content/uploads/2017/12/T-200×150.png 200w, investorplace.com/wp-content/uploads/2017/12/T-400×300.png 400w, investorplace.com/wp-content/uploads/2017/12/T-116×87.png 116w, investorplace.com/wp-content/uploads/2017/12/T-100×75.png 100w, investorplace.com/wp-content/uploads/2017/12/T-167×125.png 167w, investorplace.com/wp-content/uploads/2017/12/T-67×50.png 67w, investorplace.com/wp-content/uploads/2017/12/T-78×58.png 78w, investorplace.com/wp-content/uploads/2017/12/T-800×598.png 800w,https://investorplace.com/wp-content/uploads/2017/12/T-160×120.png 160w, investorplace.com/wp-content/uploads/2017/12/T.png 900w” sizes=”(max-width: 300px) 100vw, 300px” />
Click to Enlarge

This isn’t a temporary level, either. This $39 to $40 region has been both support and resistance over the last 20 months or so. To get above it would be a huge win for the bulls. If traders are looking to add T stock to their portfolio now, it may be best to wait. I’d wait for AT&T to either pullback or break through this current level.

Further, you’ll see that the MACD (yellow circle) is nearing a points where, historically speaking, it tends to exhaust itself. Further, the Relative Strength Index (blue circle) is nearing an overbought state. T stock has approached $39 two other times since August with an RSI reading similar to its current levels. The odds favor a pullback or at the very least some consolidation.

The Fundamentals for T Stock

We recently took a look at who the holiday winners might be in the telecom space. Because Verizon Communications Inc. (NYSE:VZ) was strangely not offering a buy-one get-one (BOGO) deal for the new Apple Inc. (NASDAQ:AAPL) iPhone, AT&T and T-Mobile Us Inc (NASDAQ:TMUS) were the likely winners.

AT&T’s BOGO offer wasn’t quite as good at T-Mobile’s, but it was likely enough to still attract new subs. That should bode well for its fourth-quarter results. Let’s hope that’s the case, as expectations for 2017 aren’t that great. Presently, analysts expect sales to contract 2.2% this year before growing just 20 basis points in 2018.

While positive revenue growth forecasts for 2018 are an improvement, it comes at a cost. Earnings growth of 2.5% in 2017 will slip to just 0.3% in 2018. But no one is buying T stock for the earnings and revenue growth. If investors want that, it’s best to look at T-Mobile. (The story we linked to above sheds light as to why.)

Instead, it’s about a low valuation and fat dividend yield. In fact, just a few days ago, T stock increased its quarterly dividend by 2% to 50 cents per share. While 2% is a small bump, the move marks AT&T’s 34th consecutive year of a higher payout. That’s something that many income investors can hang their hat on. They can count on AT&T — which now pays out 5.2% — to continue paying out that dividend for years and years to come.

To make matters even better, T stock price trades at just 13 times 2018 earnings estimates. Despite its near-zero growth, this is a low valuation for such a big, dependable dividend yield.

Bottom Line on T Stock

Through the first nine months of fiscal 2017, AT&T has a free cash flow dividend payout ratio of 70.5%. This figure is up from 66.8% during the same period a year ago. It basically means that 70% of T’s free cash flow covers the dividend. On the plus side, T stock’s dividend is covered simply by the free cash flow generated by the business. On the downside, this figure is up almost 400 basis points year-over-year. This will widen even more with the recent dividend hike.

While that’s something to keep an eye one, so too is AT&T’s pending acquisition of Time Warner Inc (NYSE:TWX). Should the company lock in Time Warner, it will add a whole host of content and free cash flow to its current business. While the roughly $85 billion deal is a biggie, many believe it will be favorable to AT&T.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

 

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playing the stock market

The stock market lost ground on Thursday, but declines in the major benchmarks were relatively modest as low levels of volatility continued to prevail. The Dow had been down as much as 145 points earlier in the day as investors weighed the possibility that the controversial firing of FBI Director James Comey could set back the Trump administration’s domestic agenda for tax cuts, health reform, and immigration. In addition, bad news among several major retailers weighed on market sentiment.

But some stocks managed to buck the trend and give investors more upbeat outlooks for their prospects. SandRidge Energy (NYSE: SD), MBIA (NYSE:MBI), and LivePerson (NASDAQ:LPSN) were among the best performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so well.

SandRidge gives investors a good report

Shares of SandRidge climbed 10% after the company reported its first-quarter financial results. The energy company said that it earned a profit of $50.8 million, which worked out to $1.90 per share, reversing a loss in the year-ago period prior to SandRidge’s emergence from bankruptcy in late 2016. SandRidge produced 4 million barrels of oil equivalent during the quarter, half of which was dry natural gas and the remainder split between crude oil and natural gas liquids. Lifting costs rose slightly during the quarter, but SandRidge continued to benefit from efforts to improve operating efficiency. In total, the energy company expects to produce between 14 million and 14.7 million barrels of oil equivalent during 2017, and it’s working hard to minimize discounts compared to West Texas Intermediate crude and Henry Hub spot natural gas prices and reap the most in profit that it can.

playing the stock market: ANSYS, Inc.(ANSS)

Advisors’ Opinion:

  • [By Lisa Levin]

    Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Wednesday's regular session.

playing the stock market: Clarke(t)

Advisors’ Opinion:

  • [By WWW.MONEYSHOW.COM]

    With a dividend yield of 4.8%, AT&T (T) will continue to be an attractive income investment whether or not the merger with Time Warner (TWX) happens. AT&T recently completed other deals that have increased earnings and strengthened dividend safety.

  • [By Adam Levy]

    As more consumers cut the cord, competition in the pay-TV industry is growing increasingly fierce. That’s led some companies to seek consolidating acquisitions like AT&T (NYSE:T) did last year by buying DIRECTV. Others, meanwhile, have sought to attract subscribers with low-priced bundles and over-the-top packages like DISH Network’s (NASDAQ:DISH) Sling TV.

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Thursday was AT&T Inc. (NYSE: T) which traded down 2.2% at $40.61. The stocks 52-week range is $36.10 to $43.89. Volume was roughly 16.8 million versus the daily average of 19.2 million shares.

playing the stock market: B Communications Ltd.(BCOM)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Monday, telecommunications services shares fell by 0.77 percent. Meanwhile, top losers in the sector included United States Cellular Corp (NYSE: USM), down 5 percent, and B Communications Ltd (NASDAQ: BCOM), down 5 percent.

  • [By Lisa Levin]

    In trading on Monday, telecommunications services shares rose by just 0.2 percent. Meanwhile, top losers in the sector included B Communications Ltd (NASDAQ: BCOM), down 4 percent, and Partner Communications Company Ltd (ADR) (NASDAQ: PTNR), down 2 percent.

playing the stock market: TherapeuticsMD, Inc.(TXMD)

Advisors’ Opinion:

  • [By WWW.THESTREET.COM]

    On the show’s “Lightning Round” segment, Jim Cramer was bullish on Penn National Gaming (PENN) , KeyCorp (KEY) and TherapeuticsMD (TXMD) .

    Quiet Breakups

9 Best Dividend Stocks to Buy for Every Investor

As we close out 2017, it’s good to remind ourselves of what worked, and what didn’t. This past year, though, makes this introspective exercise rather tricky. Although Wall Street early on forecasted a rough 2017, the end result was quite the opposite. Benchmark indices hit all-time records, while most sectors witnessed tremendous optimism. Who needs dividend stocks at a time like this?

This also means that inferior investment strategies were masked by secular bullishness. The new year may not be as forgiving, which is why I’m recommending investors to get selective. Fortunately, with dividend stocks, you don’t have to feel pressured into always picking winners.

At its core, choosing the right dividend stocks to buy is about options. Although picking high-flying growth companies is the sexiest endeavor, it isn’t always the smartest. With passive-income yielding firms, you get the potential for making capital gains, and also residual payouts to bolster your position. During a down period, dividends can also help you ride out the storm.

But don’t mistake these yields as “boring” strategies. Like any investment class, you can dial up the risk for the chance of greater rewards. This is why picking the most appropriate dividends stocks to buy is so important: no one knows your investment style better than you!

The following ideas are broken down into three sections: stable, mid-level and high-yield (speculative). Each section has something to offer, depending on how much risk you’re willing to take.

Best Dividend Stocks to Buy: Johnson & Johnson (JNJ) investorplace.com/wp-content/uploads/2017/10/jnjmsn1-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/10/jnjmsn1-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

If you love stable dividend stocks, you love Johnson & Johnson (NYSE:JNJ). It is the powerhouse brands of powerhouse brands. Better yet, JNJ is levered toward the ultimate in secular industries: healthcare. Separated among consumer-level products, pharmaceuticals, and medical devices, JNJ is one of the most respected companies in the world.

Currently, Johnson & Johnson’s dividend yield is 2.4%. Given the strength of its global business, that dividend is rock solid. But what people may not immediately appreciate is that JNJ can also surprise people in the capital markets. For instance, year-to-date, shares are up over 21%. To put that into perspective, the benchmark SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is just under 18%.

Critically for the conservative investor, JNJ rarely loses. Between 1970 to the end of 2016, annual returns average almost 15%. Moreover, JNJ only hit red ink 13 times, meaning that 72% of the time, you can expect shares to win.

In our business, that’s as close to a sure thing as you’re gonna get!

Best Dividend Stocks to Buy: Wells Fargo & Co (WFC) Wells Fargo & Company (WFC)investorplace.com/wp-content/uploads/2017/01/wfcmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/01/wfcmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

I’ll admit that I wasn’t thrilled about putting Wells Fargo & Co (NYSE:WFC) into my dividend stocks to buy list. You’ll recall that WFC was embroiled in a major controversy that shocked the entire financial and business community. Essentially, the banking giant admitted to creating more than two million fake accounts to meet ambitious sales targets.

It made me sick and I’m not the only one. But eventually, people get over this stuff, perhaps resigned to the fact that the major conglomerates always win. I’ve even made the argument that Equifax Inc (NYSE:EFX) — yes, that Equifax — will be forgiven. As cynical as it may sound, what good will being angry do for any of us?

It stinks that the ultra-rich get away with bloody murder. From a financial perspective, though, WFC is an opportunity. Despite giving long-term holders seasickness, WFC stayed the course. If the current positive momentum remains, shares will end the year in the black. Wells Fargo isn’t going anywhere.

Most importantly, WFC spits out the biggest dividend yield among the “big four” at nearly 2.7%. That may be the price of forgiveness!

Best Dividend Stocks to Buy: Exxon Mobil Corporation (XOM) xom stock exxon stockinvestorplace.com/wp-content/uploads/2017/02/xommsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/02/xommsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/02/xommsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/02/xommsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/02/xommsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/02/xommsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/02/xommsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/02/xommsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/02/xommsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/02/xommsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Again, on the surface level, Exxon Mobil Corporation (NYSE:XOM) is a strange name to put on a best dividend stocks list. Energy is hardly the most consistent sector. More to the point, XOM has been on the wrong end of a market shake-up. Since the oil collapse of 2014, XOM has at best been treading water against prior highs.

But the flipside to this bearish argument is that in practical ways, energy is the most consistent sector possible. When people hit the switch, they expect the lights to turn on. Similarly, when they go to the gasoline station, they expect to fill their tanks. Without XOM and its ilk, none of these things would occur. A societal breakdown could commence.

In all seriousness, investors should be encouraged by Exxon Mobil’s response to the oil market downturn. They and the remaining survivors have revamped their operations and rid themselves of unproductive assets. Today, XOM and the oil community are leaner, meaner, and better prepared for whatever lies ahead.

In other words, XOM has proven its resilience. As a conservative investor, you can buy that 3.7% yield with confidence.

Best Dividend Stocks to Buy: Duke Energy Corp (DUK) Duke Energy Corp (NYSE:DUK)investorplace.com/wp-content/uploads/2017/05/dukmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/dukmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/dukmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/dukmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/dukmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/dukmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/dukmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/dukmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/dukmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/05/dukmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

If you’re a real numbers guy, you’ll want to pay attention to Duke Energy Corp (NYSE:DUK). Based on a quantitative model that our own Louis Navellier developed, DUK is one of the best dividend stocks to buy right now. Mixing in commonly-used metrics (ie. earnings momentum) as well propriety methods, DUK appears primed for a stellar new year.

I, on the other hand, prefer to keep it simple if there’s no real need to complicate things. Here’s what I’m looking at: since the tech bubble and the 2008 financial crisis, DUK has steadily rewarded investors with few hiccups. This year, DUK is set to return more than 13% should its technical momentum hold.

All indications suggest that Duke Energy can keep the good times flowing into next year. As it stands, the company is the seventh-largest electric utility company in the U.S. Furthermore, management has retired many of its coal power plants, instead focusing on natural gas and cleaner energy sources.

Currently, DUK stock yields slightly more than 4%. Although slightly riskier than your conservative dividend play, Duke Energy has the right balance between stability and income.

Best Dividend Stocks to Buy: AT&T Inc. (T) AT&T T stockinvestorplace.com/wp-content/uploads/2016/04/tmsn2-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/tmsn2-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/tmsn2-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/tmsn2-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/tmsn2-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/tmsn2-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/tmsn2-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/tmsn2-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/tmsn2-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/04/tmsn2-91×50.jpg 91w,https://investorplace.com/wp-content/uploads/2016/04/tmsn2-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/tmsn2-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mike Mozart via Flickr

I have to say that AT&T Inc. (NYSE:T) disappointed me this year in the capital markets. Typically, AT&T is like clockwork — more often than not, you know what you’re getting. This year was the anomaly. On a YTD basis, T stock dropped like a rock, currently down 14%.

Although you have to have a short memory in the investment markets, I took the AT&T’s implosion personally. Investment-performance aggregator TipRanks honored me with “top blogger” status, and used my bullishness toward T stock in their feature article. Unfortunately, Wall Street had other plans and took my blue-chip baby down.

No matter. Keep in mind that between 1984 through 2016, AT&T’s annual returns average more than 13%. More importantly, during this time, T stock has only lost eight times out of 33. When this year is over, the statistic will likely be nine times out of 34. Even in that case, AT&T is a winner 73.5% of the time.

Like the aforementioned JNJ, at this rate, T stock is practically a sure thing. The only difference is the reward. AT&T offers a whopping 5.36% dividend yield!

Best Dividend Stocks to Buy: Welltower Inc (HCN) investorplace.com/wp-content/uploads/2016/08/hcnmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: sima dimitric via Flickr

I cannot wait for the current batch of young millennials to turn 40. Each generation has its fair share of youthful idiocy; however, I think millennials, particularly those in their mid-twenties, take the cake. The way that so many of them conduct themselves, you’d think that they honestly believe they will never age.

The news flash that everyone else knows instinctively is that time stops for no one. With that harsh reality in mind, I bring to you Welltower Inc (NYSE:HCN). HCN is a real estate investment trust specializing in senior care and facilities. Even if you’re one of the young Millennials that sees no use for Welltower, you still might put your parents into one of their centers.

Joking aside, I can think of no other business where revenues are virtually guaranteed, save for a funeral home. Although Welltower’s market performance has been a little choppy, in the long haul, HCN has been a steady investment. In the trailing ten years, shares have gained nearly 48%.

Of course, we can’t forget the dividend yields, which for HCN stands at 5.26%.

Best Dividend Stocks to Buy: Blackstone Group LP (BX) Blackstone (BX)investorplace.com/wp-content/uploads/2017/05/bxmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/bxmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/bxmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/bxmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/bxmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/bxmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/bxmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/bxmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/bxmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/05/bxmsn-170×93.jpg170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Moving on to the speculative side of dividend stocks, we have Blackstone Group LP (NYSE:BX). If you were to simply assess BX based on this year’s performance alone, Blackstone wouldn’t seem at all risky. On a YTD basis, BX gained nearly 19%, making it one of the top performers on this list.

Typically, strong capital returns and high yields don’t go together. With a dividend yield of 7.2%, Blackstone’s passive income is right around the same as an average mutual fund. So what gives?

Let’s just say that BX will probably never make the list of best “feel good” stocks. The financial firm has been involved in a number of controversies, ranging from scandalous real-estate practices to shadow banking. For conservative-leaning voters, Blackstone has troubling ties to key Democrats.

Additionally, BX is a “make money at any cost” type of organization. Their profiteering activities in SeaWorld Entertainment Inc (NYSE:SEAS) amid its “Blackfish” controversy is a perfect example.

But hey, who said Wall Street was a friendly place?

Best Dividend Stocks to Buy: Kimco Realty Corp (KIM) investorplace.com/wp-content/uploads/2017/02/kimmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/02/kimmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/02/kimmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/02/kimmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/02/kimmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/02/kimmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/02/kimmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/02/kimmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/02/kimmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/02/kimmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

I will tell you straight up that anything involving brick-and-mortar retail is a risky game. Earlier this year, I cautioned my readers about investing in retail REITs. With overall declining foot-traffic, the physical retail space doesn’t have the appeal it once did. Of course, the most important factor is e-commerce. Why sit in traffic and wait in lines when you can shop conveniently at Amazon.com, Inc. (NASDAQ:AMZN)?

The flipside to this argument is that some retail sectors that Amazon has trouble impacting exist. For instance, most people find it more convenient to size their clothing at a physical apparel shop than guessing online. In addition, some store brands offer better pricing or a better experience than Amazon. Think Wal-Mart Stores Inc (NYSE:WMT), Costco Wholesale Corporation (NASDAQ:COST) and Best Buy Co Inc (NYSE:BBY).

A retail REIT that focuses on strong brands just might have a chance, hence Kimco Realty Corp (NYSE:KIM). KIM features multiple properties running highly-demanded store brands. Moreover, a good chunk of their properties are located in lucrative markets.

Will it be enough to overcome the risk to the entire sector? I’m not so sure, which helps explain Kimco’s 6% dividend yield. Nevertheless, if you’re a believer, KIM gives you a solid opportunity.

Best Dividend Stocks to Buy: Sotherly Hotels Inc (SOHO) investorplace.com/wp-content/uploads/2016/09/officereitmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Anders Jildén via Unsplash

Thanks to the abundance of consumer-level technologies, traditional industries face obsolescence. A decade ago, if you needed to go to the airport, you essentially had to call a cab. Now, with ride-sharing apps like Uber or Lyft, you can request a similar service conveniently through your smartphone.

A similar upheaval may occur in the hotel industry, thanks to apps like Airbnb. To survive in this rough-and-tumble sector, you need a fresh approach. Sotherly Hotels Inc (NASDAQ:SOHO) just might have the magic formula. Centered largely in the southern region of the U.S., SOHO provides an authentic, unique experience for its guests.

Apparently, most Millennials want brands to be more authentic, and that fits SOHO to a T. Visit any of their locations, and you feel like a welcomed member of a community, not some room number. Plus, former NFL star Herschel Walker sits on the board of directors: that’s just downright awesome!

But will any of this matter for investors? Again, it’s a tough call given so many changes in the hospitality and services sector. Still, with a 6.5% dividend yield, SOHO is worth a second look.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.

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Dividend Monster AT&T Inc. Is Nearing Major Resistance

AT&T Inc. (NYSE:T) has been on fire, rallying over 15% since November 1. However, T stock price is still down more than 9% so far for 2017. So is it time to get in on this recent momentum or take a pass on the telecom giant?

Let’s look at the chart first.

Trading T Stock Price

AT&T certainly has positives, but its chart is anything but pretty. T stock price made a bullish move when it was able to reclaim the $35 mark. Above that and it was a reasonable long. However, now pushing into the $39 level, T stock enters some serious resistance.

Chart of T stock priceinvestorplace.com/wp-content/uploads/2017/12/T-768×574.png 768w, investorplace.com/wp-content/uploads/2017/12/T-40×30.png 40w, investorplace.com/wp-content/uploads/2017/12/T-200×150.png 200w, investorplace.com/wp-content/uploads/2017/12/T-400×300.png 400w, investorplace.com/wp-content/uploads/2017/12/T-116×87.png 116w, investorplace.com/wp-content/uploads/2017/12/T-100×75.png 100w, investorplace.com/wp-content/uploads/2017/12/T-167×125.png 167w, investorplace.com/wp-content/uploads/2017/12/T-67×50.png 67w, investorplace.com/wp-content/uploads/2017/12/T-78×58.png 78w, investorplace.com/wp-content/uploads/2017/12/T-800×598.png 800w,https://investorplace.com/wp-content/uploads/2017/12/T-160×120.png 160w, investorplace.com/wp-content/uploads/2017/12/T.png 900w” sizes=”(max-width: 300px) 100vw, 300px” />
Click to Enlarge

This isn’t a temporary level, either. This $39 to $40 region has been both support and resistance over the last 20 months or so. To get above it would be a huge win for the bulls. If traders are looking to add T stock to their portfolio now, it may be best to wait. I’d wait for AT&T to either pullback or break through this current level.

Further, you’ll see that the MACD (yellow circle) is nearing a points where, historically speaking, it tends to exhaust itself. Further, the Relative Strength Index (blue circle) is nearing an overbought state. T stock has approached $39 two other times since August with an RSI reading similar to its current levels. The odds favor a pullback or at the very least some consolidation.

The Fundamentals for T Stock

We recently took a look at who the holiday winners might be in the telecom space. Because Verizon Communications Inc. (NYSE:VZ) was strangely not offering a buy-one get-one (BOGO) deal for the new Apple Inc. (NASDAQ:AAPL) iPhone, AT&T and T-Mobile Us Inc (NASDAQ:TMUS) were the likely winners.

AT&T’s BOGO offer wasn’t quite as good at T-Mobile’s, but it was likely enough to still attract new subs. That should bode well for its fourth-quarter results. Let’s hope that’s the case, as expectations for 2017 aren’t that great. Presently, analysts expect sales to contract 2.2% this year before growing just 20 basis points in 2018.

While positive revenue growth forecasts for 2018 are an improvement, it comes at a cost. Earnings growth of 2.5% in 2017 will slip to just 0.3% in 2018. But no one is buying T stock for the earnings and revenue growth. If investors want that, it’s best to look at T-Mobile. (The story we linked to above sheds light as to why.)

Instead, it’s about a low valuation and fat dividend yield. In fact, just a few days ago, T stock increased its quarterly dividend by 2% to 50 cents per share. While 2% is a small bump, the move marks AT&T’s 34th consecutive year of a higher payout. That’s something that many income investors can hang their hat on. They can count on AT&T — which now pays out 5.2% — to continue paying out that dividend for years and years to come.

To make matters even better, T stock price trades at just 13 times 2018 earnings estimates. Despite its near-zero growth, this is a low valuation for such a big, dependable dividend yield.

Bottom Line on T Stock

Through the first nine months of fiscal 2017, AT&T has a free cash flow dividend payout ratio of 70.5%. This figure is up from 66.8% during the same period a year ago. It basically means that 70% of T’s free cash flow covers the dividend. On the plus side, T stock’s dividend is covered simply by the free cash flow generated by the business. On the downside, this figure is up almost 400 basis points year-over-year. This will widen even more with the recent dividend hike.

While that’s something to keep an eye one, so too is AT&T’s pending acquisition of Time Warner Inc (NYSE:TWX). Should the company lock in Time Warner, it will add a whole host of content and free cash flow to its current business. While the roughly $85 billion deal is a biggie, many believe it will be favorable to AT&T.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

 

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Top Undervalued Stocks To Watch For 2018

Shares of Gilead Sciences (GILD) have risen by over 10% since my initial article in April which called the stock a core buy in biotech with several value drivers.

GILD data by YCharts

Long time readers know that I麓m a fan of value catalyst plays, as being undervalued by itself is not a reason for me to be interested in a stock. Too often, selections we deem 篓cheap篓 or a 篓buy the dip篓 play can continue to stay cheap or head south unless there is a catalyst present to turn the ship around.

In my July update piece titled 篓Vosevi EU Approval Just One Of Several Catalysts On The Way篓 we looked at several material events that could cause shares to surge higher. While they initially did just that, unfortunately a pullback in the biotech sector brought the stock back to levels it was previously at.

Top Undervalued Stocks To Watch For 2018: HubSpot, Inc.(HUBS)

Advisors’ Opinion:

  • [By Danny Vena]

    There’s another area being driven by AI that may surprise you. The next time you text your bank, cellphone service provider, or retailer, the agent you’re dealing with might be a chatbot. This form of conversational AI is being more widely adopted to perform simple customer service tasks. According to research conducted by marketing technology vendor HubSpot, Inc. (NYSE:HUBS), of 1,426 respondents worldwide, 74% had used voice search in the prior month, and 63% of people using services based on AI technology didn’t even know it.

  • [By Elizabeth Balboa]

    HubSpot Inc (NYSE: HUBS) plummeted nearly 3 percent Tuesday on a new short report by Citron Research, which forecasted a 34-percent near-term decline and a 67-percent long-term fade from $75 to $25.

  • [By Elizabeth Balboa]

    Semiconductors are selling off, and HubSpot Inc (NYSE: HUBS) even earned a Citron short report on its sudden fade.

    “This is rotation station we are in right now and tech is out of favor and value is back in favor,” Dick said.

  • [By WWW.THESTREET.COM]

    Cramer was bearish on Ferrellgas Partners (FGP) , Realty Income (O) , Synergy Pharmaceuticals (SGYP) , Avis Budget Group (CAR) and HubSpot (HUBS) .

Top Undervalued Stocks To Watch For 2018: Mammoth Energy Services, Inc. (TUSK)

Advisors’ Opinion:

  • [By Jack Delaney]

    Mammoth Energy Services (Nasdaq: TUSK) provides drilling and related services for North American gas and oil explorers.

    Even though Mammoth was just founded in 2014, it had $243 million in revenue between June 30, 2015, and June 30, 2016.

Top Undervalued Stocks To Watch For 2018: Tele Celular Sul Participacoes S.A.(TSU)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Monday, telecommunications services shares fell 0.45 percent. Meanwhile, top losers in the sector included Shenandoah Telecommunications Company (NASDAQ: SHEN), down 3 percent, and TIM Participacoes SA (ADR) (NYSE: TSU) down 2 percent.

Top Undervalued Stocks To Watch For 2018: Clarke(t)

Advisors’ Opinion:

  • [By Jack Delaney]

    Some of the most well-known dividend aristocrats include:

    Exxon Mobil Corp. (NYSE: XOM) pays a dividend of $0.77, which is a yield of 3.75%. Aflac Inc. (NYSE: AFL) pays a dividend of $0.43, which is a yield of 2.32%. AT&T Inc. (NYSE: T) pays a dividend of $0.49, which is a yield of 5.12%. T-Rowe Price Group Inc. (Nasdaq: TROW) pays a dividend of $0.57, which is a yield of 3.27%. Clorox Co. (NYSE: CLX) pays a dividend of $0.84, which is a yield of 2.50%.

    If you just kept the dividends, your investment would be worth $11,147. That’s a difference of only $25. So it may not seem like a big deal at first glance.

  • [By Douglas A. McIntyre]

    At the other end of the iPhone 8 spectrum, wireless companies like AT&T Inc. (NYSE: T) probably will price the low-end version of the iPhone 8 below $40 a month, with 24-month contracts. This kind of price plan is a usual way for large wireless carriers to get and hold customers for long periods. Even if the carrier pays a lot for the smartphone, it presumably makes that back in monthly fees and on people who renew their subscriptions for a longer period.

  • [By ]

    AT&T (NYSE: T) is the second-largest U.S. wireless carrier with over 100 million customers, as well as more than 20 million satellite customers through its DirecTV acquisition. The company would almost certainly favor its DirecTV Now streaming service in internet packages over other video streaming competitors.

  • [By Paul Ausick]

    Telecom and media giant AT&T Inc. (NYSE: T) announced Tuesday morning that its DirecTV Now over-the-top streaming service has signed up more than 1 million subscribers in the first year of the program’s life. The downside is that streaming revenue has not replaced pay-TV losses on either the satellite or wired side of AT&T’s business.

  • [By Chris Lange]

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    Multi Packaging Solutions International Ltd. (NYSE:MPSX) shares jumped 23% as of noon EST today, on the news that the packaging company would be acquired by WestRock Company (NYSE:WRK) in a deal worth $2.3 billion, including nearly $900 million of debt.

Pete Najarian Sees Unusual Options Activity In Walgreens And AT&T

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On CNBC's "Fast Money Halftime Report", Pete Najarian spoke about unusually high options activity in Walgreens Boots Alliance Inc (NASDAQ: WBA) and AT&T Inc. (NYSE: T).

He said options traders are buying deep in the money calls in Walgreens. They bought the April 65 calls and Najarian explained that this could be a stock replacement strategy. He has a long position in the name.

Around 20,000 contracts of the April 37 calls were traded in the first half of the trading session in AT&T. Traders paid around $1.25 for these calls, which sets the break even for the trade at $38.25 or 5.78 percent above the current stock price.

Rotation, Rotation, Rotation: Value Is The New Tech

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Tech just got wrecked, said Benzinga PreMarket Prep co-host Dennis Dick.

Apple Inc. (NASDAQ: AAPL) “got hit hard.”

NVIDIA Corporation (NASDAQ: NVDA), Amazon.com, Inc. (NASDAQ: AMZN), Applied Materials, Inc. (NASDAQ: AMAT) and Micron Technology, Inc. (NASDAQ: MU) — “annihilated.”

Western Digital Corp (NASDAQ: WDC) lost 16 percent over the last eight trading sessions, and Square Inc (NYSE: SQ), after a 264-percent run, conceded 24 percent.

Semiconductors are selling off, and HubSpot Inc (NYSE: HUBS) even earned a Citron short report on its sudden fade.

“This is rotation station we are in right now and tech is out of favor and value is back in favor,” Dick said.

Who’s Sitting Pretty?

As tech falls, the once-forsaken shares of Gap Inc (NYSE: GPS), Macy’s Inc (NYSE: M), L Brands Inc (NYSE: LB), Costco Wholesale Corporation (NASDAQ: COST) and AT&T Inc. (NYSE: T) are surging.

“They like those no-growth stocks right now, and that’s what the money is all flying into,” Dick said. “Long-term, I don’t think this makes a hell of a lot of sense, but short-term, that’s the trade.”

For now, SPDR S&P Retail (ETF) (NYSE: XRT) and Financial Select Sector SPDR Fund (NYSE: XLF) investors can enjoy more than 6.5-percent five-day gains bolstered by PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: QQQ)’s 1.8-percent and Technology Select Sector SPDR Fund (NYSE: XLK)’s 2.7-percent concessions.

But they should always be ready to cash out, as the stocks plunge faster than they rise and risk getting stuck in a rut.

“They all end like this,” Dick said. “They come back after they break, and then it’s going to take some time. It’s got to form a base. Square is caught in a hard place right now. The momentum investors want nothing to do with it. The growth investors want nothing to do with it right now and the value investors like me say it’s too expensive. You need some consolidation, you need to hit a bottom, and then start to look like it’s going to go up again.”

How To Play It

So while value stocks are popping, Dick doesn’t see the trend lasting long.

“It is getting way overdone,” he said, noting that the stocks are low growth and not worth buying now. “If I had any of these in my investment portfolio, I would be ringing the register on these things right now.”

PreMarket Prep co-host Joel Elconin suggested parking the money pulled from tech plays.

“You park that money for a little bit, maybe sell some calls, finance, buy some puts with it, you try and go delta neutral like that and then you get this kind of rally and you get the principle appreciation,” Elconin said.

Related Links:

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Cramer's Guide To Profit From Market Rotations

PreMarket Prep is a daily trading ideas show hosted by former floor trader Joel Elconin and prop trader Dennis Dick. You can listen to the show live and participate in our chatroom every day from 8-9 a.m. ET here. The show is also available on YouTube Live. The podcast is available on iTunes, Soundcloud, and Stitcher.