Hot Cheap Stocks For 2019

tags:KSS,USG,XPO,GD,EMR,SIRI,

One share of Facebook stock will cost you almost $180.

A single share of Netflix is worth almost $200.

Apple stock will run you more than $165 per share.

But these popular tech stocks look downright cheap compared with Amazon and Google. You would have to fork over more than $1,000 for just one share of either of these household-name tech giants.

If you're looking to get in on the ground floor of Wall Street's next tech all-stars on the cheap, you're better off going after hot names right when they debut on the public markets, right?

Wrong.

The most anticipated initial public offering of 2017 was Snap Inc. (NYSE:SNAP). The company is the creator of the Snapchat app that's constantly distracting your kids. As you would probably expect, it debuted on the market eight months ago to a hoard of hungry buyers.

Unfortunately, investors grabbing shares of SNAP weren't exactly getting in on the ground floor. The hot social media stock was valued at around $30 billion the first day it hit the New York Stock Exchange.

Hot Cheap Stocks For 2019: Kohl's Corporation(KSS)

Advisors' Opinion:

• [By Jeremy Bowman]

  The relationship between the P/E ratio and the dividend yield is important to understand here. The lower a company's valuation is, the more valuable the dividend becomes as the dividend yield increases. For instance, with a P/E ratio of about 12, Kohl's (NYSE: KSS) could be considered a value stock, and its dividend yields a respectable 3.9%. Its payout ratio -- the percentage of earnings that go to its dividend or dividend per share divided by earnings per share -- is also modest at 48%. Eighty percent is considered the maximum that dividend stocks should aim for in order to leave adequate cash flow for other needs.

• [By Lisa Levin]

  Some of the stocks that may grab investor focus today are:

  Wall Street expects Advance Auto Parts, Inc. (NYSE: AAP) to report quarterly earnings at $1.97 per share on revenue of $2.91 billion before the opening bell. Advance Auto Parts shares gained 0.06 percent to $119.22 in after-hours trading. Analysts expect Hewlett Packard Enterprise Company (NYSE: HPE) to post quarterly earnings at $0.31 per share on revenue of $7.38 billion after the closing bell. Hewlett Packard Enterprise shares gained 0.46 percent to $17.59 in after-hours trading. Before the opening bell, TJX Companies Inc (NYSE: TJX) is estimated to report quarterly earnings at $1.02 per share on revenue of $8.47 billion. TJX shares rose 0.35 percent to $85.00 in after-hours trading. Micron Technology, Inc. (NASDAQ: MU) reported a $10 billion buyback plan. Micron shares gained 3.46 percent to $57.40 in the after-hours trading session. Analysts are expecting Kohl's Corporation (NYSE: KSS) to have earned $0.5 per share on revenue of $3.95 billion in the latest quarter. Kohl's will release earnings before the markets open. Kohl's shares fell 0.60 percent to $65.08 in after-hours trading.

  Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

• [By Garrett Baldwin]

  And with just a few smart plays in today's classic stock picker's market, you can pull in triple-digit gains with just a small investment.

  The Top Stock Market Stories for Monday Today will feature a light day of earnings reports, but things will heat up later this week for traditional retail stocks. We'll be looking for stronger earnings thanks to improved consumer confidence and spending. Retail firms reporting earnings include Target Corp. (NYSE: TGT), Kohl's Corp. (NYSE: KSS), Ross Stores Inc. (Nasdaq: ROST), Gap Inc. (NYSE: GPS), Foot Locker Inc. (NYSE: FL), and TJX Co. Inc. (NYSE: TJX). PepsiCo Inc. (NYSE: PEP) announced it will purchase the at-home carbonated drink manufacturer SodaStream International Ltd. (Nasdaq: SODA) in a deal worth $3.2 billion. The news sent SODA shares up 32% this morning and gives Pepsi a distribution channel to reach customers outside of traditional stores and vending machines. Pepsi appears to be getting out ahead of the growing trend of consumers purchasing groceries online instead of at traditional retail locations. Shares of PEP added 0.4% before the opening bell. Football season is now just three weeks away from kicking off. And America's top spectator sport is trying to resurrect itself from an ongoing public relations battle over the National Anthem. Here's the thing: Esports don't face such a problem… and they are on their way to becoming the world's largest sport in the world – scoring more fans than baseball, basketball, football, and soccer combined within two decades. Best of all, we found the perfect stock to help Money Morning readers cash in on this booming trend. Follow topicMorning Market Alert

  Morning Market Alert

• [By Shane Hupp]

  Kohl’s (NYSE:KSS) was the target of a large growth in short interest in April. As of April 30th, there was short interest totalling 29,765,891 shares, a growth of 9.9% from the April 13th total of 27,095,285 shares. Based on an average daily volume of 3,456,427 shares, the days-to-cover ratio is currently 8.6 days. Approximately 17.9% of the company’s stock are short sold.

Hot Cheap Stocks For 2019: USG Corporation(USG)

Advisors' Opinion:

• [By Max Byerly]

  Get a free copy of the Zacks research report on USG (USG)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Dan Caplinger]

  Warren Buffett likes to hold his stock positions for the long run, and his experience with USG (NYSE:USG) has been typical of his other long-term investments. The Oracle of Omaha started buying shares of the manufacturer of Sheetrock drywall and other building materials back in 2000, accumulating a sizable stake that has ballooned to more than 30% of the company. USG ended up going through bankruptcy in order to get a handle on its asbestos liability claims, but thanks largely to Buffett's involvement, the building materials company not only survived bankruptcy but also saw share prices soar briefly on hopes that USG would once again fully participate in the then-strong housing boom.

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on USG (USG)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Jason Hall, George Budwell, and Chuck Saletta]

  And while it may not always work out well to simply copy the moves other investors make, it can pay off to use their buying and selling moves as jumping-off points in your own research. We asked three real-world investors for their insight, and they wrote about two recent Buffett buys of Apple Inc. (NASDAQ:AAPL) and USG Corporation (NYSE:USG), and a recent Baker Brothers buy of Heron Therapeutics Inc (NASDAQ:HRTX). 

• [By Jordan Wathen]

  As USG Corporation (NYSE:USG) drags its feet on an offer to sell the company for $42 per share, Berkshire intends to use its 30.8% ownership stake to motivate its top brass to make a deal. Berkshire told Bloomberg it intends to vote its shares against USG's board members who are up for re-election at this year's annual meeting, a clear message that Buffett is ready to cash in, even if USG's management and board are not.

Hot Cheap Stocks For 2019: Express-1 Expedited Solutions Inc.(XPO)

Advisors' Opinion:

• [By Stephan Byrd]

  Highland Capital Management LP boosted its holdings in shares of XPO Logistics Inc (NYSE:XPO) by 14.0% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 223,249 shares of the transportation company’s stock after buying an additional 27,400 shares during the period. XPO Logistics makes up about 1.2% of Highland Capital Management LP’s portfolio, making the stock its 16th largest position. Highland Capital Management LP’s holdings in XPO Logistics were worth $22,729,000 at the end of the most recent quarter.

• [By Bill Barker]

  XPO Logistics (NYSE:XPO) is one of the world's biggest freight brokerage providers, and it's down about 50% from its highs in October. In this week's episode of Industry Focus: Energy, host Nick Sciple talks with Motley Fool contributor Bill Barker of MFAM Funds about this company's impressive past and uncertain future. Find out the biggest reasons the company's sold off so sharply since October, how XPO is pivoting to reposition themselves in the logistics market, what this all means for current and prospective shareholders, what risks investors definitely need to keep an eye on, and, of course, whether the company could be a value play at these depressed levels. Tune in to hear more.

• [By Steve Symington, Jeremy Bowman, and Demitrios Kalogeropoulos]

  So we asked that question to three top Motley Fool investors. Read on to learn why they put New Relic (NYSE:NEWR), XPO Logistics (NYSE:XPO), and Ebay (NASDAQ:EBAY) on their short lists of stocks capable of outperforming a five-bagger.

• [By Max Byerly]

  Royal London Asset Management Ltd. bought a new position in XPO Logistics Inc (NYSE:XPO) in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 50,059 shares of the transportation company’s stock, valued at approximately $5,017,000.

Hot Cheap Stocks For 2019: S&P GSCI(GD)

Advisors' Opinion:

• [By Rich Smith]

  Five years ago, General Dynamics (NYSE:GD) was struck by disaster.

  Years of acquisitions in the IT space, designed to turn the defense giant best known for its battle tanks and nuclear submarines into a cybersecurity specialist, had failed to produce significant profit growth. Instead, realizing that it had overpaid for its new subsidiaries, General D acknowledged its mistake, took a $2.9 billion charge to earnings, fired its IT division head (or allowed him to retire "to pursue new professional opportunities"), and reported only its second full-year net loss in the last 30 years.

• [By Lou Whiteman]

  The Saudi THAAD deal appears safe, but other contractors have not been as fortunate. General Dynamics (NYSE:GD) in January warned investors that cash flow generated by the company's land-systems business was "significantly impacted" by diplomatic issues between Canada and an unnamed customer. Though the company offered few other details, General Dynamics in December launched a public campaign against attempts by Canadian government officials to block a $13 billion sale of Canada-made armored vehicles to the Saudis.

• [By Paul Ausick]

  General Dynamics Corp. (NYSE: GD) dropped about 2.1% Thursday to post a new 52-week low of $187.32. Shares closed at $191.40 on Wednesday and the stock’s 52-week high is $230.00. Volume was 25% higher than the daily average of around 1.6 million. The defense giant had no specific news.

• [By Lou Whiteman]

  Lockheed Martin (NYSE:LMT) and General Dynamics (NYSE:GD) are two of the most interesting defense companies to watch right now, each with an impressive list of programs benefiting from increased Pentagon spending but each with issues that have caused investor concerns.

• [By ]

  Cramer and Moreno also looked at General Dynamics (GD) which peaked in early March, before starting a downtrend until Tuesday. Last week, General Dynamics fell to the lower end of its channel, but then it bounced right to the high end, and Wednesday it firmly broke out above the high end of this channel. The stochastic oscillator, which is a powerful momentum indicator is making a bullish crossover, and based on today's move, Moreno thinks General Dynamics can return to its old highs at $230.

• [By ]

  Finally, General Dynamics Corp. (GD) , along with Lockheed and BAE Systems, could possibly profit from heightened demand ships and other vehicles. 

Hot Cheap Stocks For 2019: Emerson Electric Company(EMR)

Advisors' Opinion:

• [By Stephan Byrd]

  Hartford Investment Management Co. lessened its stake in Emerson Electric Co. (NYSE:EMR) by 36.3% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 83,231 shares of the industrial products company’s stock after selling 47,372 shares during the period. Hartford Investment Management Co.’s holdings in Emerson Electric were worth $5,755,000 at the end of the most recent quarter.

• [By Shane Hupp]

  Element Capital Management LLC acquired a new stake in Emerson Electric Co. (NYSE:EMR) in the 1st quarter, HoldingsChannel.com reports. The fund acquired 202,986 shares of the industrial products company’s stock, valued at approximately $13,864,000.

• [By Lee Samaha]

  One person's challenge is another's opportunity, and there are very few CEOs as bold and decisive in taking advantage of a chance to enhance value for shareholders as Emerson Electric's (NYSE:EMR) David Farr. Although the terms of Emerson's deal to buy General Electric's (NYSE:GE) Intelligent Platforms business weren't disclosed, it's likely that GE's desire to sell assets in order to raise cash means Farr's company wouldn't have overpaid to acquire a strategically important business. Let's take a look at the deal, and at what it says about both companies.

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on Emerson Electric (EMR)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Benzinga News Desk]

  Former President George H.W. Bush has been hospitalized in Houston with an infection, just after attending the funeral of his wife, Barbara, a spokesman said Monday: Link

  ECONOMIC DATA Redbook Reports US Retail Sales During First 2 Weeks Of Apr. Up 0.3% MoM, Up 2.8% YoY USA S&P/CaseShiller House Price Index (MoM) for Feb Up 0.7% MoM New home sales report for March will be released at 10:00 a.m. ET. The Conference Board’s consumer sentiment index for April is schedule for release at 10:00 a.m. ET. The Richmond Fed manufacturing index for April will be released at 10:00 a.m. ET. The Treasury is set to auction 4-and 52-week bills at 11:30 a.m. ET. The Treasury will auction 2-year notes at 1:00 p.m. ET. ANALYST RATINGS Leerink upgraded Cardinal Health (NYSE: CAH) from Market Perform to Outperform Berenberg upgraded Emerson Electric (NYSE: EMR) from Sell to Hold Mizuho downgraded Skyworks (NASDAQ: SWKS) from Buy to Neutral BMO downgraded Texas Roadhouse (NASDAQ: TXRH) from Outperform to Market Perform

  This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here.

Hot Cheap Stocks For 2019: Sirius XM Radio Inc.(SIRI)

Advisors' Opinion:

• [By Rick Munarriz]

  At least one bull is growing more bullish on Sirius XM Holdings (NASDAQ:SIRI). Bank of America/Merrill Lynch analyst Jessica Reif just boosted her share price target on the satellite radio giant from $7 to $8. She's encouraged by the healthy pace of new car sales in the country -- the lifeblood of Sirius, as new vehicles put it in front of potential new subscribers. 

• [By Sean Williams]

  Another no-brainer acquisition that would make sense for Buffett and Berkshire Hathaway is satellite radio operator Sirius XM Holdings (NASDAQ:SIRI). It's worth pointing out that Berkshire Hathaway already owns 137.92 million shares of Sirius XM, or about 2.9% of all outstanding shares. 

• [By Rick Munarriz]

  Sirius XM Holdings (NASDAQ:SIRI), Glu Mobile (NASDAQ:GLUU), Fitbit (NYSE:FIT), GoPro (NASDAQ:GPRO), Zynga (NASDAQ:ZNGA), Rite Aid (NYSE:RAD), and Groupon (NASDAQ:GRPN) are some of the big names with low prices that I'm watching these days. Let's take a closer look at these seven stocks trading for $7 or less. 

• [By ]

  However, several Buffett stocks chalked up nice gains during the first quarter. The three top performers in Berkshire's portfolio were Sirius XM Holdings (NASDAQ:SIRI), Mastercard (NYSE:MA), and Moody's (NYSE:MCO). Here's what drove these stocks higher -- and what their prospects are for the rest of 2018.

• [By Garrett Baldwin]

  Click here before Sept. 26 to sign up.

  Four Stocks to Watch Today: P, AMRN, GOLD, ABX Shares of Pandora Media Inc. (NYSE: P) jumped more than 8% this morning on news it will be acquired by Sirius XM Holdings Inc. (NASDAQ: SIRI). The all-stock deal is worth roughly $3.5 billion. SIRI stock was off 3.5% after the announcement. This morning, Barrick Gold Corp. (NYSE: ABX) announced it has purchased Randgold Resources Ltd. (NASDAQ: GOLD) in an all-share deal that will create a new firm worth $18.3 billion. The new mining firm will have a massive presence in North America and Africa. Barrick shareholders will own 67% of the new organization, while Randgold shareholders will own 33%. Shares of Amarin Corp. (NASDAQ: AMRN) popped more than 285% in pre-market hours (from $2.99 to $11.55) after the biopharma company announced positive results from a clinical trial. The firm's fish oil capsule showed significant benefits to heart patients. Shares of Amarin had been off about 25% this year before the announcement. Look for an earnings report this afternoon from Ascena Retail Group Inc. (NASDAQ: ASNA).

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