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Yahoo
28-05-2025
- Business
- Yahoo
Okta (OKTA) Stock Trades Down, Here Is Why
Shares of identity management software maker Okta (OKTA) fell 14% in the morning session after the company reported mixed first quarter 2025 (fiscal 2026) results as it only reconfirmed full-year revenue guidance, which was in line with Wall Street's estimates. Also fiscal Q2 cRPO (current Remaining performance indicator - leading growth indicator) was guided below expectations and implied continued growth deceleration. On a more positive note, revenue and adjusted EPS both beat, which is a good start. Typically, beats flow through to an increase in the full-year guidance. The company also stated that they are "now factoring in potential risks related to the uncertain economic environment for the remainder of" the year. Cybersecurity had been a strong performer as the market saw the sector as recession resistant and largely unaffected by tariffs. Overall, the quarter was underwhelming as expectations were likely high heading into the print. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Okta? Access our full analysis report here, it's free. Okta's shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Okta and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 29 days ago when the stock gained 8.9% on the news that S&P Dow Jones Indices announced the company would be added to the S&P MidCap 400 before trading opens on Thursday, May 1, 2025. Being included in the index means that Okta will likely be held by many mutual funds and ETFs, which could potentially drive up demand for the stock. We note that while buying of the stock could increase, this development does not change the fundamentals of the company. Revenue growth, expense efficiency, and capital intensity of the business, for instance, are not impacted by index inclusion or exclusion, so this is more of a technical tailwind for the stock. Okta is up 36.4% since the beginning of the year, but at $107.53 per share, it is still trading 15.5% below its 52-week high of $127.30 from May 2025. Investors who bought $1,000 worth of Okta's shares 5 years ago would now be looking at an investment worth $584.66. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
17-05-2025
- Business
- Yahoo
Potential S&P 500 stock stages a surprising comeback
Even with regulatory inquiries and investor skepticism, Coinbase Global Inc. (Nasdaq: COIN) — the largest crypto exchange in the U.S.— soared 9.01% on May 16, closing at $266.46. The jump was bolstered just days before the S&P Dow Jones Indices announced Coinbase's relocation into the S&P 500 index on May 19. Nonetheless, there are new headwinds for the rally. On May 15, reports surfaced that the U.S. Securities and Exchange Commission (SEC) is investigating whether Coinbase misrepresented user numbers in past disclosures. This investigation is another litigation headwind for the exchange on top of its own ongoing litigation with the SEC around whether particular tokens listed on its platform are securities. Coinbase CEO Brian Armstrong made headlines earlier this week with a bold statement about allowing cryptocurrency in 401(k) retirement accounts—an idea that sparked both excitement and criticism among traditional investors.
Yahoo
07-05-2025
- Business
- Yahoo
Black Hills Corporation (BKH): One of the Best Mid-Cap Dividend Aristocrats to Invest in Now
According to analysts, instead of picking individual mid-cap dividend stocks, investors should consider exchange-traded funds (ETFs) as an alternative. These funds offer tax efficiency and diversification across multiple industries and typically come with low expense ratios. 'Now is the time for bargain-hunting since midcap dividend stocks are trading at historically low valuations relative to large-cap stocks. They could be the sweet spot for investors when you consider they are more insulated from tariff exposure and are expected to outpace the earnings growth of large-caps this year.' Analysts are leaning toward mid-cap dividend stocks largely because they appear undervalued. As of April 30, the MidCap Dividend Aristocrats Index had a price-to-earnings (P/E) ratio of 17.87, which is significantly lower than the P/E ratios of the broader market and the Nasdaq. Larry Adam, chief investment officer at Raymond James, made the following comment about this: Alongside investors, analysts are also recommending that income portfolios include mid-cap companies. According to Simeon Hyman, global investment strategist at ProShares, these stocks can help cushion downside risk amid current market volatility. He noted that this is particularly relevant for investors whose portfolios are heavily weighted toward large-cap growth names like the 'Magnificent Seven' tech giants. Hyman emphasized the importance of diversifying equity exposure across a wider range of asset classes to help manage risk in today's environment. There's a common misunderstanding that dividend payouts are mostly limited to large-cap companies, but mid-cap firms are often just as generous—and notably stable—when it comes to dividends. Recently, mid-cap dividend stocks, which had fallen out of favor, are making a comeback and drawing renewed interest from investment strategists. The MidCap Dividend Aristocrats Index, which includes 53 mid-sized companies that have raised their dividends for at least 15 consecutive years, has declined just 1.2% year-to-date through May 5. In comparison, the broader market has dropped 3.7% over the same period. Notably, these mid-cap companies generate about 82% of their revenue from within the US, significantly higher than the roughly 60% average for broader market firms and 53% for those in the Nasdaq Composite, based on data from S&P Dow Jones Indices and FactSet as of April 30. We recently published a list of the 12 Best Mid-Cap Dividend Aristocrats to Invest in Now . In this article, we are going to take a look at where Black Hills Corporation (NYSE:BKH) stands against other mid-cap dividend aristocrats. Story Continues For instance, the WisdomTree U.S. MidCap Dividend ETF (DON), which manages $3.47 billion in assets, posted a year-to-date return of -6.47% through April 30, with a 12-month return of 4.72% and a 12-month yield of 2.54%. Its expense ratio stands at 0.38%. Meanwhile, the ProShares S&P MidCap Dividend Aristocrats ETF (REGL), with $1.69 billion in assets, returned -1.88% so far this year, delivered a 6.96% one-year return, and yields 2.60% over 12 months. Its expense ratio is 0.40%, according to Morningstar Direct. Though both ETFs are showing negative returns for the year, their dividend payouts help cushion losses. Financial advisers often recommend reinvesting those dividends rather than withdrawing the cash, as this approach can build wealth over time by acquiring more shares while prices remain subdued. Black Hills Corporation (BKH): One of the Best Mid-Cap Dividend Aristocrats to Invest in Now A line of wind turbines against a clear sky, reflecting the companies clean energy efforts. Our Methodology For this list, we scanned the holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 12 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q4 2024, using data from Insider Monkey's database. The stocks are ranked according to the number of hedge funds having stakes in them. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Black Hills Corporation (NYSE:BKH) Number of Hedge Fund Holders: 24 Black Hills Corporation (NYSE:BKH) is an American diversified energy company, headquartered in South Dakota. The company mainly offers electric and gas utility services to its consumers. It presents a strong opportunity for income-focused investors, with its customer base growing at nearly triple the pace of the US population. Backed by a $4.7 billion capital investment plan aimed at ensuring dependable power access for its expanding customer base, the utility is well-positioned for steady growth. Management anticipates annual earnings to rise by approximately 4% to 6% in the coming years. The stock has surged by over 5% since the start of 2025. In the fourth quarter of 2024, Black Hills Corporation (NYSE:BKH) posted revenue of $597 million, reflecting a slight year-over-year increase of 1%. Operating income for the quarter rose sharply to $163.3 million, up from $136.5 million in the same period a year earlier. The company also revised its five-year capital investment forecast upward by 10%, now planning to invest $4.7 billion between 2025 and 2029, including $1.0 billion earmarked for 2025 alone. Currently, Black Hills Corporation (NYSE:BKH) pays a quarterly dividend of $0.676 per share, following a 4% increase in January. This marked the 55th consecutive year of dividend growth, which makes BKH one of the best dividend stocks on our list. As of May 5, the stock supports an attractive dividend yield of 4.43%. Overall, BKH ranks 9th on our list of the best mid-cap dividend aristocrats to buy now. While we acknowledge the potential of BKH as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than BKH but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
07-05-2025
- Business
- Yahoo
Lancaster Colony Corporation (LANC): Among the Best Mid-Cap Dividend Aristocrats to Invest in Now
According to analysts, instead of picking individual mid-cap dividend stocks, investors should consider exchange-traded funds (ETFs) as an alternative. These funds offer tax efficiency and diversification across multiple industries and typically come with low expense ratios. 'Now is the time for bargain-hunting since midcap dividend stocks are trading at historically low valuations relative to large-cap stocks. They could be the sweet spot for investors when you consider they are more insulated from tariff exposure and are expected to outpace the earnings growth of large-caps this year.' Analysts are leaning toward mid-cap dividend stocks largely because they appear undervalued. As of April 30, the MidCap Dividend Aristocrats Index had a price-to-earnings (P/E) ratio of 17.87, which is significantly lower than the P/E ratios of the broader market and the Nasdaq. Larry Adam, chief investment officer at Raymond James, made the following comment about this: Alongside investors, analysts are also recommending that income portfolios include mid-cap companies. According to Simeon Hyman, global investment strategist at ProShares, these stocks can help cushion downside risk amid current market volatility. He noted that this is particularly relevant for investors whose portfolios are heavily weighted toward large-cap growth names like the 'Magnificent Seven' tech giants. Hyman emphasized the importance of diversifying equity exposure across a wider range of asset classes to help manage risk in today's environment. There's a common misunderstanding that dividend payouts are mostly limited to large-cap companies, but mid-cap firms are often just as generous—and notably stable—when it comes to dividends. Recently, mid-cap dividend stocks, which had fallen out of favor, are making a comeback and drawing renewed interest from investment strategists. The MidCap Dividend Aristocrats Index, which includes 53 mid-sized companies that have raised their dividends for at least 15 consecutive years, has declined just 1.2% year-to-date through May 5. In comparison, the broader market has dropped 3.7% over the same period. Notably, these mid-cap companies generate about 82% of their revenue from within the US, significantly higher than the roughly 60% average for broader market firms and 53% for those in the Nasdaq Composite, based on data from S&P Dow Jones Indices and FactSet as of April 30. We recently published a list of the 12 Best Mid-Cap Dividend Aristocrats to Invest in Now . In this article, we are going to take a look at where Lancaster Colony Corporation (NASDAQ:LANC) stands against other mid-cap dividend aristocrats. Story Continues For instance, the WisdomTree U.S. MidCap Dividend ETF (DON), which manages $3.47 billion in assets, posted a year-to-date return of -6.47% through April 30, with a 12-month return of 4.72% and a 12-month yield of 2.54%. Its expense ratio stands at 0.38%. Meanwhile, the ProShares S&P MidCap Dividend Aristocrats ETF (REGL), with $1.69 billion in assets, returned -1.88% so far this year, delivered a 6.96% one-year return, and yields 2.60% over 12 months. Its expense ratio is 0.40%, according to Morningstar Direct. Though both ETFs are showing negative returns for the year, their dividend payouts help cushion losses. Financial advisers often recommend reinvesting those dividends rather than withdrawing the cash, as this approach can build wealth over time by acquiring more shares while prices remain subdued. Lancaster Colony Corporation (LANC): Among the Best Mid-Cap Dividend Aristocrats to Invest in Now A retired farmer in a wheat field, pleased with the quality of a Food products product he purchased from the company. Our Methodology For this list, we scanned the holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 12 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q4 2024, using data from Insider Monkey's database. The stocks are ranked according to the number of hedge funds having stakes in them. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Lancaster Colony Corporation (NASDAQ:LANC) Number of Hedge Fund Holders: 22 Lancaster Colony Corporation (NASDAQ:LANC) ranks tenth on our list of the best mid-cap dividend aristocrat stocks. The Ohio-based company specializes in the manufacture and sale of specialty food products. The company reported mixed earnings in fiscal Q3 2025. Its revenue came in at $$457.8 million, which not only fell by 3% on a YoY basis but also missed analysts' estimates by $26 million. The EPS of $1.49 also fell short of the consensus by $0.09. However, the company's consolidated gross profit rose by $1.5 million, reaching a third-quarter record of $106.0 million, driven by gains from cost-saving initiatives and a slight decrease in costs. In addition, consolidated operating income climbed by $14.7 million, also setting a third-quarter record at $49.9 million. Despite facing challenges on some fronts, Lancaster Colony Corporation (NASDAQ:LANC) noted that its Retail segment continued to show growth during the quarter, supported by the expansion of its licensing program. This included the introduction of Chick-fil-A sauce into the club channel, strong ongoing performance of Texas Roadhouse dinner rolls, and additional sales generated by the Subway sauces launched in March. Sales of the leading New York Bakery frozen garlic bread products also saw improvement. On the other hand, net sales in the Foodservice segment declined by 3.2%, which the company attributed to a broader industry trend of reduced store traffic and menu changes, as some customers shifted toward more value-oriented options. Even so, increased demand from several key national restaurant chains provided some support to Foodservice segment sales. Lancaster Colony Corporation (NASDAQ:LANC)'s cash situation also remained stable during the quarter. At the end of March 31, the company had $124.5 million available in cash and cash equivalents. Its quarterly dividend comes in at $0.95 per share for a dividend yield of 2.35%, as of May 5. The company holds one of the longest dividend growth streaks in the market, spanning 62 years. Overall, LANC ranks 10th on our list of the best mid-cap dividend aristocrats to buy now. While we acknowledge the potential of LANC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than LANC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
29-04-2025
- Business
- Yahoo
Why Is Okta (OKTA) Stock Rocketing Higher Today
Shares of identity management software maker Okta (OKTA) jumped 8.9% in the afternoon session after S&P Dow Jones Indices announced the company would be added to the S&P MidCap 400 before trading opens on Thursday, May 1, 2025. Being included in the index means that Okta will likely be held by many mutual funds and ETFs, which could potentially drive up demand for the stock. We note that while buying of the stock could increase, this development does not change the fundamentals of the company. Revenue growth, expense efficiency, and capital intensity of the business, for instance, are not impacted by index inclusion or exclusion, so this is more of a technical tailwind for the stock. Is now the time to buy Okta? Access our full analysis report here, it's free. Okta's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 6 days ago when the stock gained 6.6% on the news that President Trump clarified that he had no intention of removing Federal Reserve Chair Jerome Powell, a statement that helped calm markets. Earlier remarks had sparked fears of political interference in decision making at the central bank. With Trump walking back his earlier comments, investors likely felt more assured that monetary policy decisions will continue to be guided by data, not drama. That kept the Fed's word credible, and more importantly, gave investors a steadier compass to figure out where rates and the markets were headed next. Adding to the positive news, the president made constructive comments on US-China trade talks, noting that the tariffs imposed on China were "very high, and it won't be that high. ... No, it won't be anywhere near that high. It'll come down substantially. But it won't be zero." Also, a key force at the center of the stock market's massive two-day rally was the frantic behavior of short sellers covering their losses. Hedge fund short sellers recently added more bearish wagers in both single stocks and securities tied to macro developments after the whipsaw early April triggered by President Donald Trump's tariff rollout and abrupt 90-day pause, according to Goldman Sachs' prime brokerage data. The increased short position in the market created an environment prone to dramatic upswings due to this artificial buying force. A short seller borrows an asset and quickly sells it; when the security decreases in price, they buy it back more cheaply to profit from the difference. Okta is up 43.8% since the beginning of the year, and at $113.27 per share, it is trading close to its 52-week high of $116.72 from March 2025. Investors who bought $1,000 worth of Okta's shares 5 years ago would now be looking at an investment worth $757.72. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
