Sinclair Broadcasting, Investors Bancorp Sink into Thursday’s 52-Week Low Club

July 19, 2018: Here are four stocks trading with heavy volume among 76 equities making new 52-week lows in Thursday’s session. On the NYSE advancers led decliners by about 1.4 to 1 and on the Nasdaq, advancers led decliners by about 1.27 to 1.

Investors Bancorp Inc. (NASDAQ: ISBC) traded down less than 0.1% Thursday and posted a new 52-week low of $12.52 after closing Wednesday at $12.63. The stock’s 52-week high is $14.69. Volume totaled around 6.2 million, more than double the daily average. The company had no specific news and shares have reversed course, heading for a gain of about 1% for the day.

Vodafone Group plc (NASDAQ: VOD) dropped about 1.7% Thursday to post a new 52-week low of $23.28. Shares closed at $23.68 on Wednesday and the stock’s 52-week high is $32.75. Volume totaled 40% higher than the daily average of around 3.9 million. The company had no specific news.

Sibanye Gold Ltd. (NYSE: SBGL) traded down about 7.6% Thursday to post a new 52-week low of $2.07 after closing Wednesday at $2.24. The stock’s 52-week high is $6.76. Volume was about equal to the daily average of about 4.1 million shares. The company had no specific news.

Sinclair Broadcasting Group Inc. (NASDAQ: SBGI) traded down about 5.1% Thursday to set a new 52-week low of $26.00. Shares closed at $27.40 on Wednesday, and the 52-week high is $40.15. Volume was more than double the daily average of around 1.7 million. The company was stung by the release of an FCC letter claiming that Sinclair did not “fully disclose facts” in some parts of its communications related to the acquisition of Tribune Media.

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What’s Apple got to show for a 5X increase in R&D?

Better Buy: Amazon (AMZN) vs. Facebook (FB) Stock

Both Facebook (FB ) and Amazon (AMZN ) report their quarterly financial results during the week of July 23. The question is should investors consider buying shares of either Facebook or Amazon? And is either tech giant a clear winner at the moment?

Business Overview

Facebook closed the first quarter with 1.45 billion daily active users, which marked a 13% jump from the year-ago quarter. Meanwhile, the social media company’s MAU’s also popped by 13% to hit 2.2 billion. And investors should note that these user totals don’t even include the hugely popular and quickly expanding WhatsApp or Instagram—which recently surpassed 1 billion monthly active users. Facebook’s photo-sharing app alone crushes Twitter (TWTR ) and Snapchat’s (SNAP ) combined user totals .

The company’s massive user base has helped it gain a large share of advertising dollars. Plus, Facebook, along with Google (GOOGL ) , are set to continue to grab a ton of ad revenue, especially as traditional TV fades. And this is highly important since roughly 99% of Facebook’s total Q1 revenues came from advertising.

Meanwhile, Amazon’s e-commerce dominance has forced the likes of Target (TGT ) , Walmart (WMT ) , and nearly every other retailer to revamp their business models. Amazon’s AWS cloud hosting business is also successful, helping the company compete against Microsoft (MSFT ) , Google, and IBM (IBM ) .

Furthermore, Amazon has spent more money on its Amazon Prime Video service as it aims to take on Netflix (NFLX ) , Hulu, and soon enough Disney (DIS ) and Apple (AAPL ) .

Stock Movement

Shares of Amazon have outpaced FB over the last three years, having climbed 272% compared to Facebook’s roughly 113% surge. This trend continued over the last 24 months, with AMZN stock up 144% against FB’s 74% climb. Amazon stock has topped Facebook since the start of the year as well. Still, despite this disparity, investors should note that both stocks currently sit near their all-time highs.

 

Valuation

Moving on to valuation, investors will once again see a big difference, but this time in Facebook’s favor. AMZN is currently trading at 107.4X forward 12-month Zacks Consensus EPS estimates, which marks a massive premium compared to the S&P 500’s 17.3X. However, it is worth noting that Amazon and its management team don’t care much about its valuation picture, as they have pursued rapid growth and expansion over almost everything else.  

On the other hand, Facebook stock is currently trading at 24.1X forward 12-month Zacks Consensus EPS estimates, which represents a substantial discount compared to its industry’s 32.5X average. Furthermore, FB has traded as high as 31.5X over the last year, with a one-year median of 27X.

 

Investors will also see that Facebook is currently trading above its five-year low of 20X. But, Facebook stock looks rather attractive at its current level compared to its own historical standards.

Outlook

Facebook, which is set to release its Q2 financial results after market close on Wednesday, July 25, is projected to see its revenues climb by over 44% to touch $13.43 billion, based on our current Zacks Consensus Estimate. Looking a bit further ahead, Facebook’s full-year revenues are expected to climb by nearly 41% to touch $57.29 billion.

FB’s adjusted quarterly earnings are projected to pop by 32.6% to reach $1.75 per share, while its full-year EPS figure is expected to expand by more than 25%.

Amazon is set to release its second-quarter earnings results following the closing bell on Thursday, July 26. And its growth picture looks similarly stellar. 

AMZN is expected to see its Q2 revenues soar by nearly 41% to $53.46 billion. Amazon’s full-year sales are projected to reach $237.93 billion, which would mark nearly 34% growth.

Meanwhile, AMZN’s quarterly earnings are expected to skyrocket 522% from $0.40 per share in the year-ago period to $2.49 per share. Amazon’s fiscal 2018 earnings are expected to expand by nearly 179%.

Bottom Line

Amazon has seen its earnings estimate revision activity trend in the wrong direction over the last 60 days, for both the quarter and the current year, which helps contribute to Amazon’s Zacks Rank #3 (Hold). Meanwhile, Facebook has earned four upward earnings estimate revisions for both Q2 and the full year, with 100% agreement to the upside, all within the last 30 days.

Facebook is currently a Zacks Rank #2 (Buy) and sports an “A” grade for Growth in our Style Scores system. Therefore, FB stock looks like it is clearly the better buy over Amazon at the moment given its growth outlook, positive earnings revision trends, and its solid valuation picture—especially compared to AMZN.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

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Comcast drops bidding war for Fox, handing deal…

Comcast is abandoning its contest with the Walt Disney Co. to acquire a collection of Twenty-First Century Fox assets including the Fox�movie and TV studios, and stake in streaming service Hulu.

Over the last two months, Comcast has countered Disney in a bidding war for Fox's assets including its FX and National Geographic channels, 22 regional sports networks, and its 30 percent share of streaming service Hulu and a 39 percent stake in U.K.-based pay-TV and broadband provider Sky.

Both companies consider the assets crucial to a growing battle for entertainment, news and sports content delivered over the internet, as well as traditional pay-TV systems on cable, satellite and fiber.�Fox executive chairman Rupert Murdoch who, along with sons Lachlan and James, control Fox has said the family plans to refocus a smaller Fox on news and sports programming.

Comcast's exit paves an open path to Disney's acquisition of the Fox assets. Disney and Fox shareholders are scheduled to vote July 27 on the deal, and Fox's board has suggested shareholders approve the Disney sale.

More: What could a Comcast-Disney duel for Fox mean for you �� and the Marvel Universe?

That recommendation hadn't slowed the Philadelphia-based Internet and cable heavyweight. Comcast last month trumped�Disney's original $52.4 billion offer for the Fox assets made in December with its own all-cash offer of $65 billion, about a 20 percent premium to Disney's original bid.

Then Disney on June 20 countered with a $70.4 billion bid of cash and stock. Still, many Wall Street analysts expected Comcast to respond.

But Comcast CEO Brian Roberts decided to withdraw, he said Thursday.���I��d like to congratulate (Disney CEO) Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company," he said in a statement.

Comcast (CMCSA) shares rose 3.5 percent, Disney (DIS) shares gained 1.1 percent�and 20th Century Fox (FOXA) shares lost 1.5 percent.�

Instead, Comcast will focus on acquiring�U.K.-based pay-TV and broadband provider Sky, Roberts says. Prior to putting its selected assets up for sale, Fox had been seeking to�buy the 61 percent of Sky it does not already own.

But its $15 billion acquisition offer has been stalled by regulatory issues. Among U.K. regulators' concerns: sexual harassment and and discrimination in the workplace at Fox News. The Murdochs ousted senior executives�and top on-air talent at�Fox News to send a signal to regulators that it had taken the issue seriously, but approval was far from certain.�

Comcast then moved on Sky. In February, Comcast said it planned to submit a�nearly $31 billion bid for the service, with Roberts saying Sky would serve as an international growth platform for the company. When it made the bid official in April,�Comcast vowed to "establish an editorial Sky News board with the responsibility to ensure the editorial independence of Sky News for 10 years."

The company also pledged to maintain, for the next decade,�at least the current spending level on Sky News, as well as keep Sky's U.K. headquarters for five years. Comcast also vowed not to buy any U.K. newspapers for five years.

Comcast made its bid for Disney a day after a federal judge�approved AT&T's $85 billion acquisition of Time Warner, as many experts saw that as sign of a lightening in�regulatory scrutiny of media company mergers and acquisitions.

Subsequently, the Fox�board said a deal with Comcast would carry "higher regulatory risk" than one with Disney. Last week, the Justice Department said it would appeal the AT&T-Time Warner decision.

As for Disney, its deal for the Fox assets is approved in the U.S. by the Justice Department, provided it sells�Fox's 22 regional sports networks.

The new Disney will not only have Disney, Pixar, Marvel and Lucasfilm studios, but also the Fox movie and TV studios with franchises such as The Simpsons, Avatar and Alien.

Additionally, the acquisition of the X-Men, Deadpool and Fantastic Four franchises, all created by Marvel Comics, offers a vast potential for Disney to unleash new Marvel films even more character-stuffed than the recent "Avengers: Infinity War" film.

��Our incredible enthusiasm for this acquisition and the value it will create has continued to grow as we��ve come to know 21st Century Fox��s stellar array of talent and assets," Iger said in a statement. "We��re extremely pleased with today��s news, and our focus now is on completing the regulatory process and ultimately moving toward integrating our businesses.��

Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.
�

Buy AAPL Stock Before It Wins the $1 Trillion Race

Back in 2015, Money Morning Defense and Tech Specialist Michael Robinson was the first tech analyst we know of to predict Apple Inc. (Nasdaq: AAPL) would reach a market cap of $1 trillion.

His bold prediction will soon come true, with Apple's market cap sitting at $923 billion.

And now is the perfect time to own shares of AAPL stock before it reaches $1 trillion…

Of course, there are other stocks we like in the race: Microsoft Corp. (Nasdaq: MSFT) has a market cap of $783 billion, Alphabet Inc. (Nasdaq: GOOGL) has a market cap of $812 billion, and Amazon.com Inc. (Nasdaq: AMZN) has a market cap of $855 billion.

But CEO Tim Cook's company is clearly ahead.

"As much as I like Microsoft, you'd be crazy to bet against Apple in a case like this," Robinson said on June 8.

Now, he still thinks these are two great companies to own.

Free Book: The secrets in this book helped one Money Morning reader make a $185,253 profit in just eight days. Learn how to claim your copy here…

But there's one big reason you want AAPL in your portfolio right now…

Why You Need to Own AAPL Stock

Join the conversation. Click here to jump to comments…

Permian Basin Royalty Trust (PBT) Earns News Impact Score of 0.17

Media stories about Permian Basin Royalty Trust (NYSE:PBT) have been trending somewhat positive this week, Accern reports. The research group identifies positive and negative news coverage by reviewing more than 20 million blog and news sources in real time. Accern ranks coverage of companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Permian Basin Royalty Trust earned a daily sentiment score of 0.17 on Accern’s scale. Accern also assigned media coverage about the oil and gas producer an impact score of 46.225040116545 out of 100, meaning that recent news coverage is somewhat unlikely to have an impact on the stock’s share price in the immediate future.

Separately, TheStreet upgraded Permian Basin Royalty Trust from a “c” rating to a “b” rating in a research note on Thursday, April 19th.

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Permian Basin Royalty Trust traded down $0.03, reaching $9.20, during mid-day trading on Friday, Marketbeat.com reports. 2,466 shares of the stock were exchanged, compared to its average volume of 72,212. The company has a market capitalization of $432.53 million, a PE ratio of 14.50 and a beta of 0.52. Permian Basin Royalty Trust has a 1 year low of $7.80 and a 1 year high of $10.30.

Permian Basin Royalty Trust (NYSE:PBT) last released its quarterly earnings results on Thursday, May 10th. The oil and gas producer reported $0.20 earnings per share (EPS) for the quarter. The firm had revenue of $9.73 million for the quarter. Permian Basin Royalty Trust had a return on equity of 5,529.95% and a net margin of 95.80%.

The business also recently announced a monthly dividend, which will be paid on Monday, July 16th. Shareholders of record on Friday, June 29th will be paid a $0.044 dividend. The ex-dividend date of this dividend is Thursday, June 28th. This represents a $0.53 annualized dividend and a dividend yield of 5.74%.

Permian Basin Royalty Trust Company Profile

Permian Basin Royalty Trust, an express trust, holds overriding royalty interests in various oil and gas properties in the United States. The company owns a 75% net overriding royalty interest in the Waddell Ranch properties comprising Dune, Judkins, McKnight, Tubb, University-Waddell, and Waddell fields located in Crane County, Texas.

Twilio Inc (TWLO) Expected to Announce Quarterly Sales of $130.25 Million

Equities analysts predict that Twilio Inc (NYSE:TWLO) will post sales of $130.25 million for the current quarter, according to Zacks. Seven analysts have issued estimates for Twilio’s earnings, with the highest sales estimate coming in at $131.55 million and the lowest estimate coming in at $129.35 million. Twilio posted sales of $95.87 million during the same quarter last year, which would indicate a positive year over year growth rate of 35.9%. The business is scheduled to report its next quarterly earnings results on Monday, August 6th.

On average, analysts expect that Twilio will report full year sales of $541.98 million for the current financial year, with estimates ranging from $541.00 million to $544.91 million. For the next fiscal year, analysts expect that the business will report sales of $662.26 million per share, with estimates ranging from $636.58 million to $680.34 million. Zacks’ sales calculations are an average based on a survey of sell-side research analysts that cover Twilio.

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Twilio (NYSE:TWLO) last released its quarterly earnings data on Tuesday, May 8th. The technology company reported ($0.04) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.03. Twilio had a negative net margin of 16.61% and a negative return on equity of 21.88%. The firm had revenue of $129.12 million for the quarter, compared to analyst estimates of $115.92 million. During the same period last year, the firm earned ($0.04) earnings per share. The business’s quarterly revenue was up 47.8% compared to the same quarter last year.

TWLO has been the topic of a number of recent analyst reports. Vetr raised shares of Twilio from a “sell” rating to a “hold” rating and set a $39.36 price target on the stock in a research report on Monday, March 19th. ValuEngine raised shares of Twilio from a “hold” rating to a “buy” rating in a research report on Wednesday, May 2nd. Zacks Investment Research raised shares of Twilio from a “sell” rating to a “hold” rating in a research report on Friday, April 6th. Monness Crespi & Hardt initiated coverage on shares of Twilio in a research report on Wednesday, April 11th. They set a “buy” rating and a $60.00 price target on the stock. Finally, JMP Securities raised their price target on shares of Twilio from $39.00 to $55.00 and gave the company an “outperform” rating in a research report on Wednesday, May 9th. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and eighteen have assigned a buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $45.44.

Twilio opened at $56.17 on Wednesday, according to MarketBeat Ratings. Twilio has a fifty-two week low of $23.25 and a fifty-two week high of $62.34. The stock has a market cap of $5.37 billion, a P/E ratio of -72.88 and a beta of -0.27.

In related news, CFO Lee Kirkpatrick sold 15,641 shares of the firm’s stock in a transaction dated Friday, June 15th. The shares were sold at an average price of $59.13, for a total transaction of $924,852.33. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO George Hu sold 6,886 shares of the firm’s stock in a transaction dated Tuesday, June 19th. The stock was sold at an average price of $60.10, for a total transaction of $413,848.60. The disclosure for this sale can be found here. Insiders have sold 91,972 shares of company stock valued at $4,997,598 in the last 90 days. 19.80% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently bought and sold shares of the company. Delpha Capital Management LLC purchased a new position in shares of Twilio in the fourth quarter worth about $101,000. Prudential Financial Inc. purchased a new position in shares of Twilio in the first quarter worth about $228,000. Principal Financial Group Inc. purchased a new position in shares of Twilio in the first quarter worth about $249,000. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Twilio by 83.0% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,889 shares of the technology company’s stock worth $263,000 after purchasing an additional 3,124 shares in the last quarter. Finally, Hsbc Holdings PLC purchased a new position in shares of Twilio in the first quarter worth about $284,000. Hedge funds and other institutional investors own 62.11% of the company’s stock.

About Twilio

Twilio Inc provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. The company's programmable communications cloud provides a set of application programming interfaces that enable developers to embed voice, messaging, and video capabilities into their applications.

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