Adobe’s Stock To Continue Growing?

Despite more than a 63% rise from its March lows of this year, at the current price near $502 per share, we believe Adobe’s stock (NASDAQ: ADBE) is still undervalued. ADBE stock has increased from $307 to $502 since March 23rd compared to the S&P 500 which increased almost 55% from its recent lows. The stock has outperformed the market and was at a 52 week high in early September. The company has benefited from a subscription-based business model which helps with continuous revenue flow. In the first nine months (ended August 2020) of FY 2020 Adobe saw revenue grow to $9.4 billion, up by 15% y-o-y while earnings were recorded at $6.25 compared to $4.31 in the same period of the previous year.

Our dashboard What Factors Drove 179% Change In Adobe Systems Stock Between 2017 And Now? provides the key numbers behind our thinking.

The 175% rise in ADBE stock price between FY 2017 to FY 2019 is justified by significant growth in earnings during those two years. Adobe’s Revenue increased 53% from $7.2 billion in FY2017 to $11.2 billion in FY2020 (FY ends in November). This effect was amplified by margins increasing from 23.2% to 26.4% during this period. On a per share basis, earnings went up from $3.43 to $6.07. Higher revenue and margins were driven by overall industry growth and innovative solutions.

During the same period, the P/E multiple declined slightly from 52x to 51x. This was because the rise in stock price was lower than the growth in EPS. The P/E jumped in 2020 following the outbreak of coronavirus pandemic as more and

Honeywell Keeps Acting Like a Tech Company. It’s the Dow’s Top Stock Wednesday.

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Initial Vertiv-Honeywell products will focus on microgrid solutions for data centers.


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Microsoft

(MSFT).

Amazon.com

(AMZN).

Apple

(AAPL).

Honeywell International

(HON)?

Most investors don’t think of Honeywell as a tech company, but it sure is acting like one. The industrial conglomerate and data center equipment supplier

Vertiv Holdings

(VRT) are teaming up to provide new solutions for data centers. It is another example of Honeywell behaving more like a tech firm, collaborating with companies in other industries to develop new products.

Earlier in 2020, Honeywell (ticker: HON) announced a software tie-up with

SAP

(SAP.Germany), in which Honeywell married its Forge software application with the SAP Cloud for Real Estate platform. The pairing allows building operators to aggregate financial data from SAP with operational data from Forge into easy-to-use interfaces.

In the Vertiv instance, announced Wednesday morning. Honeywell is marrying its building-management systems with Vertiv’s (VRT) data center power-management systems. Honeywell stock is up 1.6% on Wednesday, while the Dow Jones Industrial Average is little changed.

Power-management systems are critical operating components of data centers. “You don’t just plug a data center server into the wall,” explains Vimal Kapur, Honeywell Building Technologies CEO. “Data centers need clean power.” Data centers need uninterrupted power with tight voltage and current specifications. Vertiv’s products enable that, and the company competes with the likes of

Schneider Electric

(SU.France) and

Eaton

(ETN).

(The news release says that data centers in 2018 consumed approximately 1% of the world’s energy use.)

A building-management system, for Honeywell’s part, is a feature of any commercial building and controls things such as heating, ventilation and air conditioning. Honeywell controls other portions of data centers, too, such as fire and safety systems.

Honeywell’s building-technology division generated about $1.2 billion in second-quarter sales, accounting for roughly 16% of the total. Vertiv

Looking for a Growth Stock? 3 Reasons Why Progress Software (PRGS) is a Solid Choice

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market’s attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it’s pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company’s real growth prospects.

Our proprietary system currently recommends Progress Software (PRGS) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this business software maker is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings Growth

Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Progress Software is 20.1%, investors should actually focus on the projected growth. The company’s EPS is expected to grow 10% this year, crushing the industry average, which calls for EPS growth of

Loop Industries Drops – Hindenburg Makes Claims, Shorts Stock

Shares of Loop Industries  (LOOP) – Get Report lost a third of their market value on Tuesday after the activist investment group Hindenburg published a report lambasting the plastics-recycling company and said it took a short position.

The investment firm said it interviewed former employees, competitors, industry experts and company partners as part of its investigation and concluded that Loop is “smoke and mirrors with no viable technology.”

Loop, Terrebonne, Quebec, didn’t immediately return a request for comment. 

Former employees told Hindenburg that Loop operated two labs, one reserved for its “two twenty-something lead scientist brothers and their father” and one run by rank-and-file scientists who were unable to replicate results. 

The investment firm said that a Loop employee told Hindenburg that scientists were pressured by Chief Executive Daniel Solomita to “lie about the results of the company’s process internally. We have obtained internal documents and photographs to support their claims.”

The report also alleges that to help raise Loop’s startup capital, Solomita hired a convict who had pleaded guilty to stock manipulation.

Loop has claimed to have developed a patented proprietary technology that breaks down a common plastic, PET, using “products purchased from the local hardware store,” Hindenburg said.

“In other words, the company claims to have discovered how to turn worthless trash into pure gold, a feat that multi-billion chemical companies such as DuPont,  (DD) – Get Report Dow Chemical,  (DOW) – Get Report and 3M  (MMM) – Get Report have been unable to achieve on a large scale despite years of efforts,” Hindenburg said in its note. 

Loop Industries shares at last check fell 34% to $7.69. 

Stock Market Today With Jim Cramer: Apple Event Is Tuesday

Stocks rose Monday as investors remained hopeful of further fiscal stimulus and prepared for quarterly earnings reports from the biggest banks in the United States.

Technology shares such as Apple  (AAPL) – Get Report, which rose ahead of its expected iPhone 12 unveiling Tuesday, and Amazon  (AMZN) – Get Report, which gained ahead of the start of its Prime Day event, were the standouts.

TheStreet’s Katherine Ross discussed breaking news in the stock market on Street Lightning. Cramer spoke about his expectations from Prime Day, why stocks popular on Robinhood matter and what to expect from Apple’s iPhone event tomorrow.

Amazon Prime Day

Amazon’s shopping extravaganza starts at midnight on Oct. 13. The company says that more than a million deals will be offered in 19 countries during the event.

Cramer said he hopes Amazon will have a better product line up for Prime Day. “I normally see stuff that doesn’t interest me but stuff that they (Amazon) want to sell. I don’t find anything in these deals at midnight work. Maybe other people will have better luck.”

Robinhood Traders Move Stocks

Robinhood, the popular stock-trading app, was valued at $11.2 billion in August after it raised $200 million from investors.

The coronavirus-imposed lockdowns have benefited challenger financial-services apps like Robinhood both in revenue and transaction volume.

Cramer said Robinhood moves stocks. “They don’t seem to understand that the goal is to get the stock in as cheaply as possible. Their goal is to take as much stock in cheap or not. And when they decide to operate on something everybody is in their bind. That’s why the stock moves.”

Apple’s iPhone 12 Event

Apple  (AAPL) – Get Report will hold an online event tomorrow where the tech giant is expected to