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Fund manager Matthew Tuttle made waves in the ETF space for his unique funds that offer ways for investors to get leveraged exposure or bet against well-known financial figures like Jim Cramer and Cathie Wood.
Tuttle is back with a new fund that gives investors a way to invest in companies that are not meeting ESG (environmental, social, and governance) requirements.
What Happened: Tuttle Capital Management launched the ETF Opportunities Trust Tuttle Capital Shareholders First Index ETF E, a new ETF that gives investors a way to invest in companies that "focus on profits, not politics or trendy activisms of the moment."
"ESGX allows investors to choose a portfolio of companies that follow the comment sense notion that companies that focus on profits are better for investors than companies that don't," a press release for the fund reads.
The ETF follows the AJN Shareholders First Index, which tracks a portfolio of U.S. companies that meet the requirement of focusing on profits and ignoring politics and "trendy activisms of the moment."
"Too many companies today put ESG and DEI politics first and their shareholders' profits last," Tuttle Capital CEO Matthew Tuttle said. "ESG has become a way for liberal executives and large investors to enact social changes that they can't pass at the ballot box."
Tuttle said CEOs can be pressured to "cave to the trendy politics of the moment," and often times this is not in the best interest of shareholders.
"That's why we launched ESGX – to put shareholders and profits first."
Tuttle added that investors had limited options of ways to invest in companies that put profits ahead of politics before the ETF launched.
As of Sept. 9, the following were the top holdings in the ESGX ETF:
The ETF launch comes after companies like Anheuser-Busch InBev , Planet Fitness , Target Corporation and others have been accused by consumers and investors of focusing too heavily on ESG and DEI policies and "going woke" instead of worrying about financial growth and returns for shareholders.
Read Also: Nancy Pelosi Among ‘Best Of The Best’ In Stock Trading: New Congress Trading ETF Coming From Creator Of Anti-Cathie Wood, Jim Cramer Funds
Self Defense ETF Also Launches: Tuttle Capital also launched the Spinnaker ETF Series Tuttle Capital Self Defense Index ETF G Tuesday.
The fund invests in companies that are engaged in self-defense, with a belief that the United States is becoming less safe.
The ETF invests in companies that manufacture, service, supply and distribute personal and law enforcement defense equipment and protection services. The fund tracks the AJN Self Defense U.S. Equity Index.
"Americans feel less safe and feel there is more crime in the country now than last year. Many Americans are taking self defense into their own hands," Tuttle said.
Tuttle added that shares of gun manufacturers have also risen after the assassination attempt on former President Donald Trump.
"Gun sales have rebounded after nearly three years of continuous decline and firearms manufacturers world wide have seen their stock surge after the terrorist attack on Israel and the Trump assassination attempt."
As of Sept. 9, the following were the top holdings in the GUNZ ETF:
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
MarketAxess Holdings Inc. MKTX recently announced an expansion of its 10-year-long partnership with BlackRock. Under this expanded partnership, MKTX’s credit trading protocols, data and pricing will be integrated into BlackRock’s Aladdin order execution management system (OEMS).
The partnership between MKTX and BlackRock in MarketAxess analytics and Open trading dates back to 2013. The expansion of this partnership bodes well for MKTX as it enhances existing offerings for common clients of both companies. The integration of MKTX’s credit trading protocols within the Aladdin platform is expected to augment the client trading experience. The ability to retain existing clients, coupled with attracting new ones, bodes well for the company.
This is a time-opportune move for MKTX as it is witnessing increased usage of its automation protocols. Clients are relying on MKTX’s strategies for more than 90% of their trading volumes. Adaptive Auto-X, Live Markets central limit order book, and Open Trading will be available to Aladdin’s clients. This is expected to enhance trading volumes for MKTX as it opens access to a larger pool of institutional clients.
As the electronification of credit markets continues to grow, the demand for liquidity, analytics and workflows will also rise, benefiting MKTX’s metrics in the future. Higher demand will lead to higher trading activity and top-line growth.
This expanded partnership will also improve MKTX’s competitive position in the market. MKTX’s automation suite of products witnessed rising adoption in the second quarter of 2024, with volumes representing 10% of its total credit volume. A move like this should expand the usage of its automation products and market share.
MKTX’s Zacks Rank & Price Performance
MarketAxess presently carries a Zacks Rank #3 (Hold). MarketAxess shares have gained 9.7% in the past month compared with 5.6% growth of the industry it belongs to.
Key Picks
Some better-ranked stocks in the broader Finance space are CrossFirst Bankshares, Inc. CFB, WisdomTree, Inc. WT and HIVE Digital Technologies Ltd. HIVE. Each of the companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CrossFirst Bankshares’ earnings outpaced estimates in each of the last four quarters, the average surprise being 8.8%. The Zacks Consensus Estimate for CFB’s 2024 earnings indicates an improvement of 4.1%, while the consensus mark for revenues implies growth of 5.1% from the corresponding year-ago figures. The consensus mark for CFB’s earnings has moved 1.3% north in the past 30 days.
The Zacks Consensus Estimate for WisdomTree’s 2024 earnings indicates 67.6% year-over-year growth. During the past two months, WT has witnessed three upward estimate revisions against none in the opposite direction. It met earnings estimates twice in the past four quarters and beat twice, with an average surprise of 5.9%.
The Zacks Consensus Estimate for HIVE Digital’s current-year earnings suggests a 63.6% year-over-year improvement. During the past 30 days, HIVE has witnessed two upward estimate revisions against none in the opposite direction. The consensus mark for current-year revenues suggests a 9.4% jump from a year ago.
Zacks Investment Research
The S&P 500 Index today is down -0.03%, the Dow Jones Industrials Index is down -0.52%, and the Nasdaq 100 Index is up +0.15%.
Stocks today are mixed. Weakness in bank stocks today is weighing on the broader market after JPMorgan Chase President Pinto said analysts are too optimistic in projecting next year’s expenses and net interest income. Also, Goldman Sachs CEO Solomon said his bank’s trading unit is on track to drop -10% from the prior year, led by declines in the fixed-income business. Today’s -3% slump in WTI crude oil to a 16-month low is undercutting energy stocks.
On the positive side, Oracle is up more than +12% after reporting stronger-than-expected Q1 adjusted revenue. Also, Tesla is up more than +3% after Deutsche Bank named the stock a top pick with a buy recommendation.
Another supportive factor for stocks was today’s Chinese trade news that showed China’s Aug exports rose +8.7% y/y, stronger than expectations of +6.6% y/y and the largest increase in 17 months. The strength in Chinese exports is supportive of the global economic growth outlook.
The markets are cautious going into tonight’s debate between presidential candidates Harris and Trump, which may affect polling ahead of the November election.
The markets are looking ahead to US consumer price news on Wednesday to see if inflation falls by enough to allow the Fed to ease monetary policy aggressively. The consensus is for Aug CPI to ease to +2.6% y/y from +2.9% y/y in July and for the Aug core CPI to be unchanged from July at +3.2% y/y.
The markets are discounting the chances at 100% for a -25 bp rate cut for the September 17-18 FOMC meeting and at 31% for a -50 bp rate cut at that meeting.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.73%. China's Shanghai Composite recovered from a 7-month low and closed up +0.28%. Japan's Nikkei Stock 225 closed down by -0.16%.
Interest Rates
December 10-year T-notes (ZNZ24) today are up +3 ticks. The 10-year T-note yield is down -2.4 bp at 3.676%. Dec T-notes today recovered from early losses and moved higher after a -3% slump in crude prices to a 16-month low knocked the 10-year breakeven inflation rate to a 5-week low, a bullish factor or T-notes. T-notes initially moved lower due to supply pressures, as the Treasury will auction $58 billion of 3-year T-notes later today as part of this week’s $119 billion auction package of T-notes and T-bonds.
European government bond yields today are lower. The 10-year German bund yield is down -0.6 bp at 2.163%. The 10-year UK gilt yield fell to a 3-week low of 3.839% and is down -1.4 bp at 3.842%.
Swaps are discounting the chances of a -25 bp rate cut by the ECB at 100% for the Sep 12 meeting.
US Stock Movers
Bank stocks are getting hammered today after JPMorgan Chase President Pinto said analysts are too optimistic in projecting next year’s expenses and net interest income, and Goldman Sachs CEO Solomon said his bank’s trading unit is on track to drop -10% from the prior year. As a result, Synchrony Financial , Discover Financial Services , and Capital One Financial are down more than -6%. Also, JPMorgan Chase is down more than -5% to lead losers in the Dow Jones Industrials. In addition, Goldman Sachs and Citigroup are down more than -3%.
Oracle is up more than +12% to lead gainers in the S&P 500 after reporting Q1 adjusted revenue of $13.31 billion, better than the consensus of $13.26 billion.
Tesla is up more than +2% to lead gainers in the Nasdaq 100 after Deutsche Bank named the stock a top pick with a buy recommendation and a price target of $295.
Today’s -3% slump in WTI crude oil to a 16-month low is undercutting energy stocks. Diamondback Energy is down more than -3% to lead losers in the Nasdaq 100. Also, Devon Energy , Exxon Mobil , and Hess Corp are down more than -2%. In addition, Chevron , Phillips 66 , Occidental Petroleum , Marathon Oil , and Schlumberger are down more than -1%.
Mission Produce is up more than +20% after reporting Q3 revenue of $324 million, well above the consensus of $231 million.
Calavo Growers is up more than +13% after reporting Q3 adjusted EPS of 57 cents, stronger than the consensus of 43 cents.
Johnson Controls International is up more than +2% after Bank of America Global Research upgraded the stock to buy from neutral.
Hewlett Packard Enterprise is down more than -7% to lead losers in the S&P 500 after announcing an offering of $1.35 billion of convertible preferred stock in an underwritten registered public offering.
Ulta Beauty is down more than -4% after B Riley Securities initiated coverage of the stock with a sell rating and a price target of $300.
AngloGold Ashanti Plc is down more than -7% after announcing that it agreed to buy Centamin Plc for about $2.5 billion.
StepStone Group is down more than -6% after announcing that it offered 4.1 million class A shares via Goldman Sachs.
Earnings Reports (9/10/2024)
Academy Sports & Outdoors Inc (ASO), Cantaloupe Inc (CTLP), Critical Metals Corp (CRML), Dave & Buster's Entertainment (PLAY), Evolution Petroleum Corp (EPM), GameStop Corp (GME), Innovage Holding Corp (INNV), Mama's Creations Inc (MAMA), Petco Health & Wellness Co Inc (WOOF).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.
With its inclusion in the S&P 500 index, Palantir Technologies Inc. is entering a new phase that will likely attract a new wave of investors and long-term capital, according to Bank of America.
On Tuesday, the investment bank reiterated a Buy rating and raised the price target for the data analytics and artificial intelligence firm from $30 to $50, as “S&P 500 inclusion provides a watershed moment” for institutional investors.
“We think that becoming a member of the S&P 500 could be highly beneficial to PLTR’s stock volatility. We think that the inclusion would attract more institutional investors, both passive and active,” wrote Mariana Perez Mora, an analyst at Bank of America.
Strong Financials, Strategic AI Leadership
Palantir has become a key player in artificial intelligence, leveraging its deep ties with both government and commercial sectors. Bank of America's revised $50 price target reflects a new valuation approach, which rolls estimates forward to 2026.
This leads to a projected enterprise value of $116 billion, propelling Palantir closer to the top 100 companies in the S&P 500 (from its current ranking in the 165th range).
Mora explained that the elevated multiple derived from the updated price target is justified by Palantir’s position in national security, its leadership in AI platforms, and its opportunistic partnerships.
She also stressed the company’s strong balance sheet, particularly its $3.9 billion net cash position, as a sign of financial strength that sets Palantir apart from competitors.
A Misunderstood Giant in AI
Bank of America draws attention to a significant market underestimation of Palantir's future potential, likening it to AT&T Inc.‘s early misjudgment of the mobile phone market in the 1980s.
“In 1980, AT&T hired a consultancy company to estimate the market size for cell phones by 2000. The study suggested there would only be 900k users. The actual number of mobile subscriptions in 2000 was more than 100 million,” the report stated.
The analogy underscores how early forecasts often miss the mark on disruptive technologies. Similarly, Palantir's advanced AI capabilities, particularly its Foundry platform, are seen as a vastly underappreciated asset.
Foundry is designed to make data not only accessible but actionable, transforming decision-making processes across various industries.
Bank of America's bullish outlook on Palantir is also supported by its expanding list of partnerships. The company is working closely with major corporations and government agencies, including PwC, Jacobs, Accenture, and Airbus, to broaden its customer base.
“We see Palantir as a beneficiary of rapidly growing demand for Artificial Intelligence (AI)-platforms in both commercial and government end-markets,” the report stated.
Shares of Palantir traded 0.4% lower by 11:15 a.m. ET on Tuesday, after rallying as much as 14.1% a day earlier.
Within the software-related industry, as tracked by the iShares Expanded Tech-Software Sector ETF , Palantir ranks third in year-to-date returns, rising 100%, behind Zeta Global Holdings Corp. , which skyrocketed 187%, and AppLovin Corp. , which surged 116%.
Read Next:
Photo: World Economic Forum on Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.
Considering buying JCI stock? Here’s what analysts think:
Read More:
Latest Ratings for JCI
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | Morgan Stanley | Maintains | Overweight | |
Feb 2022 | Deutsche Bank | Maintains | Hold | |
Feb 2022 | Credit Suisse | Maintains | Outperform |
View More Analyst Ratings for JCI
View the Latest Analyst Ratings
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The S&P 500 Index today is up +0.33%, the Dow Jones Industrials Index is down -0.16%, and the Nasdaq 100 Index is up +0.54%.
Stocks today are mixed. On the positive side, Oracle is up more than +13% after reporting stronger-than-expected Q1 adjusted revenue. Also, Tesla is up more than +3% after Deutsche Bank named the stock a top pick with a buy recommendation. In addition, Johnson Controls International is up more than +3% after Bank of America Global Research upgraded the stock to a buy.
On the negative side, Goldman Sachs is down more than -3% to weigh on the Dow Jones Industrials after CEO Solomon said his bank’s trading unit is on track to drop 10% from the prior year, led by declines in the fixed-income business. Also, Apple is down more than -1% after losing a court fight in the European Union over a $14.4 billion Irish tax bill.
Another supportive factor for stocks was today’s Chinese trade news that showed China’s Aug exports rose +8.7% y/y, stronger than expectations of +6.6% y/y and the largest increase in 17 months. The strength in Chinese exports is supportive of the global economic growth outlook.
The markets are cautious going into tonight’s debate between presidential candidates Harris and Trump, which may affect polling ahead of the November election.
The markets are looking ahead to US consumer price news on Wednesday to see if inflation falls by enough to allow the Fed to ease monetary policy aggressively. The consensus is for Aug CPI to ease to +2.6% y/y from +2.9% y/y in July and for the Aug core CPI to be unchanged from July at +3.2% y/y.
The markets are discounting the chances at 100% for a -25 bp rate cut for the September 17-18 FOMC meeting and at 29% for a -50 bp rate cut at that meeting.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.45%. China's Shanghai Composite recovered from a 7-month low and closed up +0.28%. Japan's Nikkei Stock 225 closed down by -0.16%.
Interest Rates
December 10-year T-notes (ZNZ24) today are down -1 tick. The 10-year T-note yield is up +0.2 bp at 3.702%. Dec T-notes today are slightly lower, weighed down by negative carryover from weakness in European government bonds. Also, supply pressures are undercutting T-notes as the Treasury will auction $58 billion of 3-year T-notes later today as part of this week’s $119 billion auction package of T-notes and T-bonds.
European government bond yields today are higher. The 10-year German bund yield is up +1.3 bp at 2.181%. The 10-year UK gilt yield is up +0.7 bp at 3.863%.
Swaps are discounting the chances of a -25 bp rate cut by the ECB at 100% for the Sep 12 meeting.
US Stock Movers
The strength of megacap technology stocks is supporting gains in the broader market. Nvidia and Amazon.com are up more than +2%. Also, Microsoft is up more than +2% to lead gainers in the Dow Jones Industrials. In addition, Meta Platforms and Alphabet are up more than +1%.
Oracle is up more than +13% to lead gainers in the S&P 500 after reporting Q1 adjusted revenue of $13.31 billion, better than the consensus of $13.26 billion.
Tesla is up more than +3% to lead gainers in the Nasdaq 100 after Deutsche Bank named the stock a top pick with a buy recommendation and a price target of $295.
Wells Fargo & Co is up more than +2% after CFO Santomassimo said deposits are performing “quite well” versus expectations.
Mission Produce is up more than +16% after reporting Q3 revenue of $324 million, well above the consensus of $231 million.
Calavo Growers is up more than +6% after reporting Q3 adjusted EPS of 57 cents, stronger than the consensus of 43 cents.
Elf Beauty is up more than +3% after B Riley Securities initiated coverage of the stock with a recommendation of buy and a price target of $175.
Johnson Controls International is up more than +1% after Bank of America Global Research upgraded the stock to buy from neutral.
Hewlett Packard Enterprise is down more than -7% to lead losers in the S&P 500 after announcing an offering of $1.35 billion of convertible preferred stock in an underwritten registered public offering.
Goldman Sachs is down more than -3% to lead losers in the Dow Jones Industrials after CEO Solomon said his bank’s trading unit is on track to drop 10% from the prior year, led by declines in the fixed-income business.
Ulta Beauty is down more than -4% after B Riley Securities initiated coverage of the stock with a sell rating and a price target of $300.
Apple is down more than -1% after losing a court fight in the European Union over a $14.4 billion Irish tax bill.
AngloGold Ashanti Plc is down more than -5% after announcing that it agreed to buy Centamin Plc for about $2.5 billion.
StepStone Group is down more than -5% after announcing that it offered 4.1 million class A shares via Goldman Sachs.
Earnings Reports (9/10/2024)
Academy Sports & Outdoors Inc (ASO), Cantaloupe Inc (CTLP), Critical Metals Corp (CRML), Dave & Buster's Entertainment (PLAY), Evolution Petroleum Corp (EPM), GameStop Corp (GME), Innovage Holding Corp (INNV), Mama's Creations Inc (MAMA), Petco Health & Wellness Co Inc (WOOF).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Axon Enterprise (AXON).
Axon currently has an average brokerage recommendation (ABR) of 1.27, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.27 approximates between Strong Buy and Buy.
Of the 15 recommendations that derive the current ABR, 12 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 80% and 13.3% of all recommendations.
Brokerage Recommendation Trends for AXON
The ABR suggests buying Axon, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in AXON?
Looking at the earnings estimate revisions for Axon, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.91.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Axon. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Axon.
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