Top Small Cap Stocks To Watch Right Now

China’s central bank on Thursday refrained from immediately following the Federal Reserve in raising borrowing costs.

The People’s Bank of China had been widely anticipated to react to the U.S. hike by lifting the cost of reverse-repurchase agreements for the second time this year, following three increases in 2017.

“It appears the PBOC decided that growth is slowing and inflation is low and well below target, while money market rates are relatively high so they don’t want to boost them further,” said Dariusz Kowalczyk, senior emerging-market strategist at Credit Agricole SA in Hong Kong.

Chinese equities were boosted by the news. The Shanghai Composite Index erased a loss of 0.5 percent to rise 0.3 percent, while the ChiNext gauge of small caps and tech stocks led gains, climbing 0.9 percent. Government bond futures also rallied, with the most active 10-year contracts spiking 0.45 percent, the most since April 18 — the day after the PBOC cut reserve requirement ratio. The yield on sovereign notes due in a decade was little changed at 3.68 percent as of 10:10 a.m. in Shanghai.

Top Small Cap Stocks To Watch Right Now: NextEra Energy Partners, LP(NEP)

Advisors’ Opinion:

  • [By Matthew DiLallo]

    NextEra Energy Partners (NYSE:NEP) announced this week that it would acquire a portfolio of wind and solar assets from its parent NextEra Energy (NYSE:NEE) for $1.275 billion. The transaction, which the company will finance through a unique arrangement with leading asset manager BlackRock (NYSE:BLK), keeps it on track to grow its 3.6%-yielding dividend at a 12% to 15% annual pace all the way through 2023. That forecast could energize the company to produce market-smashing returns in the coming years.

  • [By Maxx Chatsko]

    That said, one partnership has stood out from the crowd: NextEra Energy Partners LP (NYSE:NEP). That’s not surprising considering it has a close affiliation with the world’s largest utility by market valuation, NextEra Energy (NYSE:NEE), which doubles as the largest owner of wind and solar farms in the United States. As the partnership turns four years old this month, it’s a good time for investors that may have overlooked it to this point to reconsider.

  • [By Maxx Chatsko]

    It’s only March, but NextEra Energy Partners (NYSE:NEP) has already announced transactions that will allow it to meet its growth objectives for the year. That should pique the interest of investors, especially considering shares are trading roughly 10% below last year’s peak, and at more attractive valuations than other renewable energy yieldcos.

  • [By Jon C. Ogg]

    There are still plenty of asset transactions taking place in the world of alternative and renewable energy sources. A transaction was announced on Monday by NextEra Energy Partners L.P. (NYSE: NEP) to acquire a geographically diverse portfolio wind and solar projects. NextEra Energy Partners entered into a $900 million convertible equity portfolio financing agreement with a unit of KKR & Co. Inc. (NYSE: KKR) in the transaction.

  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on Nextera Energy Partners (NEP)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Matthew DiLallo]

    Three companies well positioned to benefit from this renewable powered growth are NextEra Energy Partners (NYSE:NEP), Pattern Energy Group (NASDAQ:PEGI), and Enviva Partners LP (NYSE:EVA). That’s why they’re at the top of my renewable-stock watchlist. Here’s what I’m currently watching at each one before potentially adding them to my portfolio.

Top Small Cap Stocks To Watch Right Now: Energy Transfer Equity, L.P.(ETE)

Advisors’ Opinion:

  • [By Matthew DiLallo]

    On Energy Transfer Equity’s (NYSE:ETE) first-quarter conference call, the company’s management team provided investors with a unique glimpse of what’s going on behind the scenes. One of the things they’re working on is the acquisition of namesake MLP Energy Transfer Partners. CEO Kelcy Warren said on the call that the companies have “looked at every scenario possible to us” and that the only one that makes mathematical sense is for Energy Transfer Equity to buy its MLP. That transaction would not only simplify the company’s corporate structure but could enable Energy Transfer to resume growing its 7.1% yielding distribution.

  • [By Matthew DiLallo]

    One reason investors are worried that Energy Transfer might need to reduce its distribution is that the company barely generates enough cash flow to support it without the help of its parent Energy Transfer Equity (NYSE:ETE). In 2017, Energy Transfer Partners produced $4.19 billion in distributable cash flow and would have paid out $4.15 billion to investors if it wasn’t for the fact that Energy Transfer Equity relinquished its rights to $656 million of that cash. While that support boosted the distribution coverage ratio from a tight 1.0 times to a more comfortable 1.2 times, it was only a temporary fix since Energy Transfer Equity’s support will diminish significantly in 2018 before declining further in 2019 and 2020.

  • [By Matthew DiLallo]

    Energy Transfer Equity (NYSE:ETE) reported a significant increase in distributable cash flow during the second quarter due to its relationship with Energy Transfer Partners (NYSE:ETP). Not only did its namesake master limited partnership report strong results thanks to recently completed expansion projects, but Energy Transfer Equity benefited from being able to withdraw some of the support it provided the partnership during the heavy spending portion of its expansion phase. That strong showing from the MLP bodes well for Energy Transfer Equity’s future since it’s in the process of acquiring that entity.

  • [By Ethan Ryder]

    Energy Transfer Equity LP Unit (NYSE:ETE) was upgraded by analysts at US Capital Advisors from a hold rating to an overweight rating.

    Energy Transfer Partners (NYSE:ETP) was upgraded by analysts at US Capital Advisors from a hold rating to an overweight rating.

  • [By Stephan Byrd]

    D.A. Davidson & CO. reduced its stake in Energy Transfer Equity (NYSE:ETE) by 10.7% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 46,328 shares of the pipeline company’s stock after selling 5,550 shares during the period. D.A. Davidson & CO.’s holdings in Energy Transfer Equity were worth $658,000 at the end of the most recent quarter.

Top Small Cap Stocks To Watch Right Now: TransAct Technologies Incorporated(TACT)

Advisors’ Opinion:

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on TransAct Technologies (TACT)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on TransAct Technologies (TACT)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Joseph Griffin]

    TransAct Technologies (NASDAQ:TACT) and Sensio Technologies (OTCMKTS:SNIOF) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

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