It looks all but certain that the Federal Reserve will raise short-term interest rates when it concludes its two-day meeting on March 15. Bank stocks are traditional beneficiaries of higher interest rates, but they have already rallied sharply since the presidential election in November because investors are giddy about potential corporate tax cuts and financial deregulation. If the central bank does indeed hike short-term rates at its next meeting, are there any bank stocks with more upside to come?
See Also: 12 Dividend Aristocrats for Every Month of the Year
Plenty, says analyst Richard X. Bove of Rafferty Capital Markets. Due to safeguards put in place during the Great Recession, banks are sitting on big piles of cash that are earning very low returns. “In the last 10 years, the government has forced them to raise their cash and securities, so if you get an increase in rates they see a jump in interest income,” Bove says. “And there’s no cost against that. It’s a simple increase in revenue.
stock market today chart: J.B. Hunt Transport Services Inc.(JBHT)
- [By Lisa Levin]
Here is the list of stocks going ex-dividend on August 3, 2016.
J B Hunt Transport Services Inc (NASDAQ: JBHT) – $0.2200 dividend, 1.0791 percent yield
Johnson Controls Inc (NYSE: JCI) – $0.2900 dividend, 2.6250 percent yield
FirstEnergy Corp. (NYSE: FE) – $0.3600 dividend, 3.9680 percent yield
Sunoco LP (NYSE: SUN) – $0.8255 dividend, 10.7347 percent yield
Wells Fargo & Co (NYSE: WFC) – $0.3800 dividend, 3.1588 percent yield
BP plc (ADR) (NYSE: BP) – $0.6000 dividend, 6.8768 percent yield
American Airlines Group Inc (NASDAQ: AAL) – $0.1000 dividend, 1.1442 percent yield
Heidrick & Struggles International, Inc. (NASDAQ: HSII) – $0.1300 dividend, 2.9834 percent yield
Alcoa Inc (NYSE: AA) – $0.0300 dividend, 1.1321 percent yield
Sensient Technologies Corporation (NYSE: SXT) – $0.2700 dividend, 1.5341 percent yield
Posted-In: Ex-DividendNews Dividends Markets Trading Ideas
stock market today chart: Vermillion, Inc.(VRML)
- [By Alex McGuire]
Here’s a list of the top 10 penny stocks to watch in March, which includes the biggest gainers last month…
Penny StockCurrent Stock PriceFebruary 2017 ReturnZosano Pharma Corp. (Nasdaq: ZSAN)$2.56+123.3%Bellerophon Therapeutics Inc. (Nasdaq: BLPH)$1.25+113.8%Peregrine Pharmaceuticals (Nasdaq: PPHM)$0.59+101.7%Galectin Therapeutics Inc. (Nasdaq: GALT)$1.79+91.9%Bioanalytical Systems Inc. (Nasdaq: BASI)$1.58+90.6%CymaBay Therapeutics Inc. (Nasdaq: CBAY)$3.50+89.8%Vermillion Inc. (Nasdaq: VRML)$2.56+86.3%Naked Brand Group Inc.(Nasdaq:NAKD)$2.16+76%Eyegate Pharmaceuticals Inc. (Nasdaq: EYEG)$2.63+73.9%Benitec Biopharma Ltd. (Nasdaq ADR: BNTC)$2.60+59.9%
The best-performing penny stock – Zosano Pharma Corp. – soared an incredible 123.3% from Feb. 1 to Feb. 28. To put those gains into perspective, that’s more than five times the S&P 500’s 23% climb in the last 12 months.
stock market today chart: Ideal Power Inc.(IPWR)
- [By Jim Robertson]
On Thursday, our Under the Radar Moversnewslettersuggested smallcap electrical power conversion product stock Ideal Power Inc (NASDAQ: IPWR)as a long trade:
stock market today chart: Ishares Trust Dj Us Financial (IYF)
- [By Wayne Duggan]
Investors looking to set up a pair trade to capitalize on the divergent paths of U.S. and European banks should consider going long the iShares Dow Jones US Financial (ETF) (NYSE: IYF) and short the Ishares MSCI Europe Fincls Sctr Indx Fd (NASDAQ: EUFN).
stock market today chart: Lennar Corp.(LEN)
- [By The Ticker Tape]
In addition to a tightening labor market and accelerating wage growth, the University of Michigan’s Consumer Sentiment Index is close to 10-year highs and expectations that mortgage rates will continue to rise could motivate some potential homebuyers that may have been holding off. When it comes to existing homes the prices are high and the inventory is low. The combination of these factors could create a favorable environment for new homebuilders and the broader housing sector.
Will Homebuilders Benefit?
Lennar Corporation (NYSE: LEN) reported Q1 earnings of $0.56 per share on March 21—slightly beating analyst expectations of $0.55 per share. New home orders were up 12% year-over-year on a unit basis. Lennar’s CEO, Stewart Miller, said “our homebuilding operations have gone from slow and steady to a faster than expected sales pace throughout our first quarter,” thanks to a combination of economic optimism, wage and job growth, and increasing consumer confidence.
D.R. Horton and PulteGroup (PHM) are expected to report Q2 earnings on April 20th. Both companies beat analyst’s revenue and earnings expectations last quarter. Looking at Figure 1 below, all three of the major U.S. homebuilders have outperformed the S&P 500 year-to-date.
- [By Lisa Levin]
Lennar Corporation (NYSE: LEN) reported better-than-expected profit for its first quarter on Tuesday.
General Mills, Inc. (NYSE: GIS) reported upbeat earnings for its fiscal third quarter, while sales missed estimates.
Genesis Energy, L.P. (NYSE: GEL) disclosed that it has priced its public offering of 4 million common units for gross proceeds of $124 million.
South State Corporation (NASDAQ: SSB) reported that it has increased its buyback plan from 250,000 shares to 1 million shares.
- [By Lisa Levin]
Lennar Corp (NYSE: LEN) announced plans to buy CalAtlantic Group Inc (NYSE: CAA) for around $9.3 billion in a stock-and-cash deal, including $3.6 billion in debt.
- [By Lisa Levin] Related LOV Match Group And Spark Networks: A Valentine's Day Case Study 20 Biggest Mid-Day Losers For Thursday
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Canadian Solar Inc. (NASDAQ: CSIQ) is expected to report its quarterly earnings at $0.32 per share on revenue of $690.27 million.
General Mills, Inc. (NYSE: GIS) is projected to report its quarterly earnings at $0.71 per share on revenue of $3.84 billion.
Coca-Cola European Partners Plc (NYSE: CCE) is estimated to report its quarterly earnings at $0.45 per share on revenue of $2.72 billion.
Lands' End, Inc. (NASDAQ: LE) is expected to report its quarterly earnings at $0.35 per share on revenue of $459.43 million.
Francesca's Holdings Corp (NASDAQ: FRAN) is estimated to report its quarterly earnings at $0.37 per share on revenue of $145.91 million.
Cheetah Mobile Inc (ADR) (NYSE: CMCM) is projected to report its quarterly earnings at $0.06 per share on revenue of $178.04 million.
Neogen Corporation (NASDAQ: NEOG) is estimated to report its quarterly earnings at $0.27 per share on revenue of $90.05 million.
Lennar Corporation (NYSE: LEN) is projected to post earnings for its first quarter.
Fifth Street Asset Management Inc (NASDAQ: FSAM) is expected to report its quarterly earnings at $0.14 per share on revenue of $25.12 million.
- [By Peter Graham]
A long term performance chart shows KB Home along with large cap D.R. Horton, Inc (NYSE: DHI) and mid capsLennar Corporation (NYSE: LEN) and PulteGroup, Inc (NYSE: PHM) somewhat range bound or volatile for the past four years: