Kohl's, Toyota, American Airlines and More Stocks That Defined the Week
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Yahoo
4 hours ago
- Yahoo
Palo Alto & CyberArk, Corning Q2 beat, Sphere price target
Market Domination host Josh Lipton tracks the latest market movers and stocks in this Market Minute. Palo Alto Networks (PANW) is reportedly in talks to acquire CyberArk (CYBR) in a deal that could exceed $20 billion, according to The Wall Street Journal. Corning (GLW) stock is jumping after the company topped second quarter earnings and issued upbeat third quarter guidance. Sphere Entertainment (SPHR) stock gains after Goldman Sachs raised its price target, citing the company's new partnership with Abu Dhabi's Department of Culture and Tourism as a potential catalyst. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's market minute. Palo Alto Networks reportedly has its sights set on acquiring CyberArk software. According to the Wall Street Journal, a deal could value CyberArk at more than $20 billion, and Palo Alto could finalize a deal for the firm as soon as later this week. Communications equipment company Corning reporting a beat on sales and earnings for the second quarter. Looking ahead, the company is also providing a better-than-expected outlook for the third quarter. JP Morgan noting that guidance should reinforce investor confidence and earnings upside opportunity in the second half of 2025. And Sphere Entertainment getting a lift, Goldman Sachs from raising its price target on that stock while reiterating its buy rating. Goldman noting that Sphere's agreement with the Abu Dhabi Department of Culture and Tourism should act as a catalyst. And that's your Yahoo! Finance market minute. For more on what's trending on Yahoo! Finance, scan the QR code below to track the best and worst performing stocks of the session. Related Videos How is the Dow calculated? Here's a breakdown. Market is seeing 'pockets of speculation,' not 'excessive' froth Berkshire trims VeriSign stake, Novo Nordisk craters, PayPal falls Market's 'fuel' for further P/E expansion is 'nearing empty' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Yahoo
Pfizer Stock Is a Value Play Ahead of Earnings - Investors Can Short PFE Puts for Income
Pfizer, Inc. (PFE) stock still looks cheap ahead of its upcoming Aug. 5 Q2 earnings release. Moreover, investors can make extra income by selling out-of-the-money (OTM) put options. This article updates my July 2 Barchart piece, 'Huge Unusual Volume in Pfizer Put Options Signals Investors Bullish Outlook.' More News from Barchart $200 AMD Price Target? Try These 2 Option Trades Before the Market Moves Option Volatility And Earnings Report For July 28 – Aug 1 Should You Grab This 'Strong Buy' Semiconductor Stock Ahead of Earnings? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! PFE stock is at $24.23 in midday trading on Tuesday, July 29. That's down from its March 7 high of $26.73. It could be worth substantially more, as this article will show. Statistically Cheap I demonstrated in my last article that PFE stock appears to be undervalued based on its historical price-to-earnings (P/E) ratio and analysts' earnings per share (EPS) forecasts. Additionally, based on its average historical dividend yield, PFE could rebound if it were to revert to its historical mean yield. Price-Earnings Target For example, analysts project $3.01 EPS this year and $3.08 in 2026. Barchart's analyst survey says the range is between $3.07 this year and $3.06 in 2026 - i.e., a slight decline in EPS. However, Yahoo! Finance reports a $3.01 EPS estimate for 2025 and $3.08 next year, and Stock Analysis says the analyst range is between $3.03 and $3.13. So, on average, these surveys range between $3.03 EPS this year and $3.09 next year. That means PFE stock is trading on a forward P/E multiple of between 8.0x (i.e., $24.23/$3.03) for 2025 and 7.84x ($24.23/$3.09). This is well below its historical valuation average. For example, Seeking Alpha reports that Pfizer stock has had an average 10.79x forward P/E multiple in the last 5 years. In addition, Morningstar says the 5-year average forward multiple has been 10.16x. So, using a 10.5x average forward multiple, we can forecast where PFE would trade if it reverts to its mean valuation: $3.03 EPS x 10.5 = $31.82 2025 target $3.09 EPS x 10.5 = $32.45 2026 target So, on average, the price target is $32.13 if PFE were to rise to its average multiple. That presents a potential upside of +32.6% from today. Dividend Yield Target The same thing is evident with PFE's average dividend yield. Its yield today is 7.09% (i.e., $1.72/$24.23). But, historically, it's been 4.25% (Morningstar), or 4.58% (Yahoo! Finance). So, using an average yield of 4.415%, PFE should be worth +71 % more: $1.72 / 0.0415 = $41.45 or +71.0% more The bottom line is that if PFE were to trade at its historical mean P/E multiple or dividend yield the stock is deeply undervalued. In addition, analysts see the stock as too cheap. Analysts' Target Prices For example, Yahoo! Finance reports that 24 analysts have an average price target of $28.67, or +18% higher. Barchart's mean survey target is $27.81, and Stock Analysis says 14 analysts have an average price target of $29.92, or +23% higher. Moreover, which tracks recent analyst recommendations and write-ups, reports that 17 analysts have an average $32.21 price target. So, on average, these surveys show that analysts believe PFE stock is worth $29.65. That is potentially +22.3% higher than today. Summary Valuation As a result, using these three metrics, PFE stock looks deeply undervalued: P/E based target ……. $32.13 Div Yield target ……… $41.45 Analysts' targets ……. $29.65 Average Target Price … $34.41, or over $10 higher, and a potential upside of +42%. However, there is no guarantee this will happen over the next 12 months. As a result, it makes sense to set a lower buy-in price and get paid while waiting for this to occur. That's what happens when an investor sells short out-of-the-money (OTM) puts in nearby expiry periods. Shorting OTM PFE Put Options for Income For example, look at the Aug. 29 expiration period, which is one month from today. It shows that the $23.00 put option exercise price, which is 5% below today's trading price (i.e., out-of-the-money), has an attractive yield. Since the midpoing premium is 26 cents, that offers a short-seller (i.e., an investor who enters a trade to 'Sell to Open') an immediate 1.13% yield (i.e., $0.26/$23.00 = 0.0113). This also means that even if PFE stock falls to $23.00, the investor has a breakeven point of $23.00-$0.26, or $22.74. That is 6.3% below today's price, providing good downside protection. Moreover, the delta ratio is low at just 24%, implying a low probability that the stock will fall to this strike price over the next month. That implies an investor stands to make an expected return of over 3.3% over the next 3 months if this trade can be repeated. In effect, it allows investors at today's undervalued price to make extra income. In addition, even if PFE falls to $23.00, the investor's potential upside is quite attractive, over +50%: $34.41 target price / $22.74 breakeven point = 1.513 - 1 = +51.3% upside The bottom line here is that PFE stock looks deeply undervalued on a statistical basis. One way to play it is to short OTM puts to generate extra income. On the date of publication, Mark R. Hake, CFA 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. This article was originally published on 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
11 hours ago
- Yahoo
Earnings, Trade Outlook Lift Wall Street Pre-Bell; Asia Mixed, Europe Up
Wall Street futures again pointed to fresh all-time records pre-bell Tuesday, as traders digested a Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
