Top 5 Tech Stocks To Invest In 2019

tags:MGIC,LEDS,ASX,EFII,ENPH,

A CNN headline reads: "$8 million in assets - and can't get a mortgage." If banks don't lend money to prospective homeowners with uncertain earnings potential -- even if they're sitting on valuable assets -- should you invest in a company with uncertain earnings potential simply because it's sitting on a cash pile? Enter First Solar (NASDAQ:FSLR). As of Q4 2016, FSLR is sitting on cash of $1,955M with very little debt ($188M). Therefore, at a current market cap of $2,770M, FSLR has a price/cash ratio of 1.43. To put this in perspective, a price of $18.75 would put FSLR on sale for -- in the language of some bulls -- "free."

Why, then, has FSLR dropped from $60 to $26.54 in one year, precariously approaching its "free" price? The same reason you can't get a mortgage simply because you have a giant bank account: Cash means nothing vs. the possibility of weak future cash flows. And weak future cash flows is the fear du jour for FSLR, which has seen its cost-leading technology lose out to a massive economies-of-scale strategy by Chinese producers such as Trina Solar (NYSE:TSL), JinkoSolar (NYSE:JKS), and Canadian Solar (NASDAQ:CSIQ).

Top 5 Tech Stocks To Invest In 2019: Magic Software Enterprises Ltd.(MGIC)

Advisors' Opinion:

• [By Motley Fool Transcribers]

  Magic Software Enterprises Ltd  (NASDAQ:MGIC)Q4 2018 Earnings Conference CallMarch 04, 2019, 10:00 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

• [By Logan Wallace]

  Get a free copy of the Zacks research report on Magic Software Enterprises (MGIC)

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

• [By Logan Wallace]

  ValuEngine lowered shares of Magic Software Enterprises (NASDAQ:MGIC) from a buy rating to a hold rating in a report issued on Monday.

  Several other equities research analysts have also recently issued reports on MGIC. Zacks Investment Research raised shares of Magic Software Enterprises from a sell rating to a hold rating in a research report on Wednesday, January 17th. BidaskClub cut shares of Magic Software Enterprises from a sell rating to a strong sell rating in a research report on Tuesday, January 23rd. Finally, HC Wainwright set a $10.00 target price on shares of Magic Software Enterprises and gave the stock a buy rating in a research report on Thursday, March 1st. Two analysts have rated the stock with a sell rating, one has issued a hold rating and three have issued a buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $9.81.

• [By Max Byerly]

  Get a free copy of the Zacks research report on Magic Software Enterprises (MGIC)

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

• [By Logan Wallace]

  HC Wainwright set a $10.00 target price on Magic Software Enterprises (NASDAQ:MGIC) in a research note released on Thursday morning. The firm currently has a buy rating on the software maker’s stock.

Top 5 Tech Stocks To Invest In 2019: SemiLEDS Corporation(LEDS)

Advisors' Opinion:

• [By Lisa Levin] Gainers SemiLEDs Corporation (NASDAQ: LEDS) shares rose 35.8 percent to $4.55. EVINE Live Inc. (NASDAQ: EVLV) gained 28.8 percent to $1.04. The pay-TV home shopping company was named as a potential acquisition target by TechCrunch. According to the publication, Amazon.com, Inc. (NASDAQ: AMZN) is exploring ways of marketing its products and services to consumers beyond the internet. Sanmina Corp (NASDAQ: SANM) shares surged 19.1 percent to $33.00 as the company reported stronger-than-expected earnings for its second quarter on Monday. Heidrick & Struggles International, Inc. (NASDAQ: HSII) gained 14.9 percent to $37.22 as the company posted upbeat results for its first quarter. Santander Consumer USA Holdings Inc. (NYSE: SC) shares climbed 14 percent to $17.90 following upbeat quarterly earnings. Helix Energy Solutions Group, Inc. (NYSE: HLX) climbed 14 percent to $7.12 following strong quarterly results. Check-Cap Ltd. (NASDAQ: CHEK) gained 13.6 percent to $8.25. Atossa Genetics Inc. (NASDAQ: ATOS) rose 11.8 percent to $3.34. Atossa Genetics disclosed that it has Received positive interim review from the Independent Safety Committee in Phase 1 Topical endoxifen dose escalation study in men. Cadence Design Systems, Inc. (NASDAQ: CDNS) gained 11.6 percent to $40.99 after the company posted upbeat Q1 results and issued a strong Q2 forecast. Genprex, Inc. (NASDAQ: GNPX) climbed 11.2 percent to $4.9363. Mitel Networks Corporation (NASDAQ: MITL) rose 10.5 percent to $11.23 after the company agreed to be acquired by affiliates of Searchlight Capital Partners for $2.0 billion. Systemax Inc. (NYSE: SYX) rose 10.2 percent to $30.86. Sidoti & Co. upgraded Systemax from Neutral to Buy. Orchids Paper Products Company (NYSE: TIS) surged 9.2 percent to $7.13. Orchids Paper Products is expected to report its Q1 financial results on Wednesday, April 25, 2018. New Oriental Education & Technology Group Inc. (NYSE: EDU) rose
• [By Lisa Levin] Gainers Check-Cap Ltd. (NASDAQ: CHEK) shares jumped 104.82 percent to close at $14.87 on Tuesday. EVINE Live Inc. (NASDAQ: EVLV) rose 31.25 percent to close at $1.06. The pay-TV home shopping company was named as a potential acquisition target by TechCrunch. According to the publication, Amazon.com, Inc. (NASDAQ: AMZN) is exploring ways of marketing its products and services to consumers beyond the internet. SemiLEDs Corporation (NASDAQ: LEDS) shares climbed 27.16 percent to close at $4.26 on Tuesday. Atossa Genetics Inc. (NASDAQ: ATOS) gained 27.09 percent to close at $3.80. Atossa Genetics disclosed that it has Received positive interim review from the Independent Safety Committee in Phase 1 Topical endoxifen dose escalation study in men. Heidrick & Struggles International, Inc. (NASDAQ: HSII) surged 17.13 percent to close at $37.95 as the company posted upbeat results for its first quarter. Santander Consumer USA Holdings Inc. (NYSE: SC) shares gained 15.91 percent to close at $18.21 following upbeat quarterly earnings. Riot Blockchain, Inc. (NASDAQ: RIOT) shares jumped 15.73 percent to close at $7.58 on Tuesday after declining 1.50 percent on Monday. Sanmina Corp (NASDAQ: SANM) shares gained 14.62 percent to close at $31.75 as the company reported stronger-than-expected earnings for its second quarter on Monday. Orchids Paper Products Company (NYSE: TIS) jumped 12.86 percent to close at $7.37. Orchids Paper Products is expected to report its Q1 financial results on Wednesday, April 25, 2018. Helix Energy Solutions Group, Inc. (NYSE: HLX) rose 12.8 percent to close at $7.05 following strong quarterly results. Avid Bioservices, Inc. (NASDAQ: CDMO) rose 12.72 percent to close at $3.81. Genprex, Inc. (NASDAQ: GNPX) gained 12.61 percent to close at $5.00. Obalon Therapeutics, Inc. (NASDAQ: OBLN) rose 12.39 percent to close at $3.72. NextDecade Corporation (NASDAQ: NEXT) shares climbed 11.88 percent to close at $7
• [By Logan Wallace]

  QuickLogic (NASDAQ: QUIK) and SemiLEDs (NASDAQ:LEDS) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Top 5 Tech Stocks To Invest In 2019: Advanced Semiconductor Engineering, Inc.(ASX)

Advisors' Opinion:

• [By Money Morning News Team]

  ASE Technology Holding Co. Ltd. (NYSE: ASX), a semiconductor firm, has outstanding earnings and growth potential that should propel the shares upward.

• [By Logan Wallace]

  ASE Technology (NYSE:ASX) and Magnachip Semiconductor (NYSE:MX) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

• [By Joseph Griffin]

  LDK Solar (OTCMKTS:LDKYQ) and ASE Technology (NYSE:ASX) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Top 5 Tech Stocks To Invest In 2019: Electronics for Imaging Inc.(EFII)

Advisors' Opinion:

• [By Joseph Griffin]

  These are some of the headlines that may have impacted Accern’s rankings:

  Get Electronics For Imaging alerts: Hadera Paper Commits to Digital Innovation Leadership with EFI Nozomi Corrugated Press (finance.yahoo.com) Electronics For Imaging, Inc. (EFII) Receives Consensus Rating of “Hold” from Analysts (americanbankingnews.com) Analysts Expect Electronics For Imaging, Inc. (EFII) Will Post Quarterly Sales of $263.69 Million (americanbankingnews.com) Commit To Buy Electronics for Imaging At $30, Earn 10.3% Annualized Using Options (nasdaq.com)

  Shares of EFII traded up $0.51 during mid-day trading on Friday, hitting $34.78. The company’s stock had a trading volume of 1,301 shares, compared to its average volume of 478,325. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.55 and a quick ratio of 2.15. The stock has a market capitalization of $1.50 billion, a P/E ratio of 128.59, a P/E/G ratio of 25.03 and a beta of 1.08. Electronics For Imaging has a 1-year low of $25.28 and a 1-year high of $43.89.

• [By Max Byerly]

  Natixis Advisors L.P. lifted its stake in Electronics For Imaging, Inc. (NASDAQ:EFII) by 20.1% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 21,439 shares of the technology company’s stock after buying an additional 3,582 shares during the quarter. Natixis Advisors L.P.’s holdings in Electronics For Imaging were worth $586,000 as of its most recent filing with the Securities & Exchange Commission.

• [By Stephan Byrd]

  BidaskClub downgraded shares of Electronics For Imaging (NASDAQ:EFII) from a hold rating to a sell rating in a report published on Thursday morning.

• [By Max Byerly]

  Get a free copy of the Zacks research report on Electronics For Imaging (EFII)

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

• [By Joseph Griffin]

  Metropolitan Life Insurance Co. NY lessened its holdings in shares of Electronics For Imaging, Inc. (NASDAQ:EFII) by 53.3% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 14,882 shares of the technology company’s stock after selling 17,018 shares during the period. Metropolitan Life Insurance Co. NY’s holdings in Electronics For Imaging were worth $439,000 at the end of the most recent reporting period.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on Electronics For Imaging (EFII)

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

Top 5 Tech Stocks To Invest In 2019: Enphase Energy, Inc.(ENPH)

Advisors' Opinion:

• [By Money Morning News Team]

  (Nasdaq: CNET)

  $2.95 34.76% Seadrill Ltd. (NYSE: SDRL) $0.28 33.81% Intelsat Corp. (NYSE: I) $9.11 31.50% Navios Maritime Midstream Partners LP (NYE: NAP) $4.42 29.18% Limelight Networks Inc. (Nasdaq: LLNW) $4.89 28.61% Enphase Energy Inc. (Nasdaq: ENPH) $5.05 24.62%

  As you can see in the table above, penny stocks have the potential to provide tremendous returns for enterprising investors. However, it's important to note that investing in penny stocks is also incredibly risky.

• [By Lisa Levin] Gainers Loxo Oncology, Inc. (NASDAQ: LOXO) rose 17.1 percent to $163.30 in pre-market trading as the company disclosed that LOXO-292 Phase 1 trial abstract was selected for 'Best of ASCO'. CytomX Therapeutics, Inc. (NASDAQ: CTMX) rose 11.5 percent to $27.15 in pre-market trading after the company announced presentations at the 2018 ASCO Annual Meeting. Check-Cap Ltd. (NASDAQ: CHEK) rose 12.3 percent to $5.47 in pre-market trading after reporting narrower-than-expected Q1 loss. Flotek Industries, Inc. (NYSE: FTK) shares rose 7.1 percent to $3.62 in the pre-market trading session. Baozun Inc. (NASDAQ: BZUN) shares rose 5.8 percent to $47.65 in pre-market trading after reporting Q1 results. World Wrestling Entertainment, Inc. (NYSE: WWE) rose 5.5 percent to $46.00 in pre-market trading. Williams Partners L.P. (NYSE: WPZ) rose 5.3 percent to $40.50 in pre-market trading after The Williams Companies, Inc. (NYSE: WMB) announced agreement to acquire all public equity of Williams Partners in a $10.5 billion deal. Koss Corporation (NASDAQ: KOSS) shares rose 4.6 percent to $2.72 in pre-market trading after surging 12.55 percent on Wednesday. Enphase Energy, Inc. (NASDAQ: ENPH) rose 4.5 percent to $5.85 in pre-market trading after gaining 5.66 percent on Wednesday. Farmer Bros. Co. (NASDAQ: FARM) rose 4.1 percent to $27 in pre-market trading after climbing 7.90 percent on Wednesday. Kosmos Energy Ltd. (NYSE: KOS) rose 4 percent to $7.70 in pre-market trading.

   

• [By Travis Hoium]

  SunPower Corporation (NASDAQ:SPWR) and Enphase Energy Inc (NASDAQ:ENPH) are continuing to transform their businesses after a rough couple of years, and a new deal will have the two solar companies working together. SunPower is selling its solar microinverter business, acquired from SolarBridge in 2014, to Enphase Energy, which will begin making custom microinverters for SunPower's high-efficiency solar panels. 

• [By Lisa Levin] Gainers Blink Charging Co. (NASDAQ: BLNK) shares climbed 31.68 percent to close at $7.19 on Wednesday. Blink Charging reported Q1 net income of $2.2 million, versus a year-ago net loss of $3.1 million. Eleven Biotherapeutics, Inc. (NASDAQ: EBIO) shares gained 24.15 percent to close at $3.29. Eleven Biotherapeutics posted a Q1 loss of $0.11 per share. 21Vianet Group, Inc. (NASDAQ: VNET) shares surged 24 percent to close at $6.82. Check-Cap Ltd. (NASDAQ: CHEK) gained 20.25 percent to close at $4.87. HUYA Inc. (NYSE: HUYA) shares surged 18.42 percent to close at $22.50 Abaxis, Inc. (NASDAQ: ABAX) rose 16.15 percent to close at $83.34. Zoetis Inc. (NYSE: ZTS) announced plans to acquire Abaxis for $83 per share in cash. Pain Therapeutics, Inc. (NASDAQ: PTIE) shares jumped 16.07 percent to close at $10.62. Bilibili Inc. (NASDAQ: BILI) rose 16.04 percent to close at $14.11. Gemphire Therapeutics Inc. (NASDAQ: GEMP) gained 14.88 percent to close at $6.33. Phoenix New Media Limited (NYSE: FENG) rose 13.96 percent to close at $5.55. Daqo New Energy Corp. (NYSE: DQ) jumped 13.88 percent to close at $67.27 on Wednesday. Sea Limited (NYSE: SE) jumped 12.59 percent to close at $11.98 after reporting Q1 results. Viking Therapeutics, Inc. (NASDAQ: VKTX) rose 12.01 percent to close at $5.13. Ascena Retail Group, Inc. (NASDAQ: ASNA) gained 11.93 percent to close at $3.19. Boot Barn Holdings, Inc. (NYSE: BOOT) climbed 11.66 percent to close at $24.52 on Wednesday after the company reported upbeat results for its fourth quarter and issued strong first-quarter earnings guidance. Macy's, Inc. (NYSE: M) rose 10.83 percent to close at $33.17 after the company reported stronger-than-expected results for its first quarter and lifted guidance. ChemoCentryx, Inc. (NASDAQ: CCXI) gained 9.36 percent to close at $12.50. Canaccord Genuity initiated coverage on ChemoCentryx with a Buy rating. Biolinerx Ltd/S ADR (NASDAQ: BLRX)
• [By Logan Wallace]

  Enphase Energy (NASDAQ:ENPH) was upgraded by research analysts at BidaskClub from a “buy” rating to a “strong-buy” rating in a research report issued on Saturday.

12 Ways To Drill For Profits In The Oil And Gas Sector

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-1133921319&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1133921319/960x0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; (Photo by / Getty)

&l;em&g;From small cap oil service firms to some of the world&a;rsquo;s largest integrated global &l;a href=&s;http://www.forbes.com/energy/&s;&g;energy&l;/a&g; outfits, there is a wide range of opportunities to invest in oil &a;amp; gas. Several leading investment experts, and ongoing contributors to &l;/em&g;&l;a href=&q;https://www.moneyshow.com/&q; target=&q;_blank&q;&g;&l;em&g;MoneyShow.com&l;/em&g;&l;/a&g;&l;em&g;, highlight a dozen favorite investment ideas to add some energy to your portfolio.&a;nbsp;&l;/em&g;

&l;strong&g;Stephen Leeb&l;/strong&g;, &l;a href=&q;https://www.investingdaily.com/complete-investor/&q; target=&q;_blank&q;&g;&l;strong&g;The Complete Investor&l;/strong&g;&l;/a&g;

We expect oil demand to continue to rise fairly steadily for at least the next generation. Even if gasoline usage falls, demand for petrochemicals will be growing. Over the shorter term, geopolitically induced changes in supply will likely keep oil prices volatile.

Within the next two years, though, as pressures on supply grow, the uptrend in oil prices that began near the century&a;rsquo;s start will likely resume. That&a;rsquo;s good news for &l;a href=&s;http://www.forbes.com/newsletter/stocks/&s;&g;stocks&l;/a&g; with the greatest degree of cyclicality: oil service companies. Since its 2016 high point, the oil services group is down more than 70%.

Two small oil service companies, &l;strong&g;Frank&a;rsquo;s International&l;/strong&g; (FI) and &l;strong&g;Dril-Quip&l;/strong&g; (DRQ), both will have tremendous leverage to the upside when the oil market turns. Meanwhile, they&a;rsquo;re protected by their strong cash positions. Currently, Dril-Quip has $2 million in debt and $425 million in cash. Frank&a;rsquo;s has no debt and around $250 million in cash.

Dril-Quip focuses largely on offshore drilling, offering products like subsea control systems and subsea wellheads and servicing all its equipment. Around 62% of its activities are in the Western Hemisphere.

Offshore drilling has been hit particularly hard by volatile oil prices, reflected in Dril-Quip&a;rsquo;s results. As many competitors failed, Dril-Quip cut costs sharply while maintaining state-of-the-art products, leaving it exceptionally well situated for when oil exploration returns to better days.

Despite the company&a;rsquo;s cash-heavy balance sheet, it should be regarded as speculative until the upturn becomes more visible. But if it hangs in, its industry position will be stronger than ever when the upturn starts. This is a stock whose potential upside is several times the current price.

Frank&a;rsquo;s is a leading global provider of tubular services and products that maintain the integrity of drill pipes. More than 50% of revenues come from offshore wells.

But as with Dril-Quip, Frank&a;rsquo;s&a;rsquo;s balance sheet proves the company is a survivor. And also like Dril-Quip, it has increased its competitive mettle within a toxic group whose turnaround could be dramatic.

For both these oil service companies, the upside is many times the current share price. Patience will certainly be required, and they could drop further, but in the end the rewards should be substantial.

&l;strong&g;Mark Skousen, &l;/strong&g;&l;a href=&q;https://www.markskousen.com/&q; target=&q;_blank&q;&g;&l;strong&g;Five Star Trader&l;/strong&g;&l;/a&g; and &l;a href=&q;https://www.markskousen.com/&q; target=&q;_blank&q;&g;&l;strong&g;High-Income Alert&l;/strong&g;&l;/a&g;

That&a;rsquo;s the case of&a;nbsp;&l;strong&g;CNX Midstream Partners &l;/strong&g;(CNXM), the Canonsburg, Pennsylvania-based natural gas pipeline company, that offers the opportunity to buy a stock in the energy patch that is selling for only 6.9 times earnings this year, has raised its dividend every quarter since February 2015 and now yields 9%.

Its business is booming.&a;nbsp;Revenues are up 15% to $257 million and earnings are ahead 50% to $121 million.&a;nbsp;It has a profit margin of 47% and a return on equity (ROE) of 24%. It is definitely under the radar screen of most Wall Street analysts.&a;nbsp;Its price/earnings to growth (PEG) ratio is 0.49 (anything less than 1 is considered excellent).

And CNX Midstream has an aggressive, young CEO, Chad Griffith, who recently took the helm and is rapidly expanding its pipeline network.&a;nbsp;The company was formed after CNX acquired Con Midstream Partners from Noble Energy last January. Since then, the combined company has been acquiring systems and taking other steps to grow its business.

CNX Midstream has beaten Street forecasts four quarters in a row and probably will do so again when it reports in May. Not surprisingly, five officers and directors recently have been buying their company&a;rsquo;s stock.

Based in Houston, &l;strong&g;Kinder Morgan&l;/strong&g; (KMI) is the largest energy infrastructure company in North America; it owns and operates more than 84,000 miles of pipelines and 153 terminals. Its pipelines transport natural gas, petroleum, crude oil, carbon dioxide and more.

Kinder likens its business to a giant toll road. It receives fees from major oil companies, other energy producers and shippers and local distributors.&a;nbsp;That allows it to avoid commodity price risk.&a;nbsp;It also invests billions in new energy infrastructure to maintain and expand existing assets.

Lower oil prices have constrained new exploration and development.&a;nbsp;But they are stoking demand, not reducing it.&a;nbsp;Sales of big cars, SUVs and boats are up, not down. I estimate that Kinder will earn $1.06 a share this year and nearly $1.50 a share in 2020.&a;nbsp;And that may be too conservative.

At least, Co-Founder and Executive Chairman&a;nbsp;&l;a href=&s;http://www.forbes.com/profile/richard-kinder/&s;&g;Richard Kinder&l;/a&g;&a;nbsp;seems to think so. He has purchased $50.5 million worth of the stock in the last two months to bring his total holdings &a;mdash; both personally and through a limited partnership &a;mdash; to more than 250 million shares. (Now that&a;rsquo;s what I call eating your own cooking.)

It is no mystery why Kinder is piling into the stock.&a;nbsp;Given the company&a;rsquo;s projected growth, it is cheap at just 18 times prospective earnings and only 1.3 times book value. It also yields an attractive 4.2%. I expect an excellent total return here in the weeks and months ahead.

&l;strong&g;John Buckingham, &l;/strong&g;&l;a href=&q;https://theprudentspeculator.com/&q; target=&q;_blank&q;&g;&l;strong&g;The Prudent Speculator&l;/strong&g;&l;/a&g;

&l;strong&g;Exxon Mobil &l;/strong&g;(XOM) is the world&a;rsquo;s largest integrated oil and gas company. While the company endured a tough 2018, things have been looking up so far in 2019, with shares up around 10% and a solid Q4 earnings release.

The firm posted adjusted EPS of $1.41 (vs. $1.08 est.), largely due to better downstream results than expected. Production finally rose, albeit slightly, with volumes increasing less than 1% as new growth from the Permian Basin and the Hebron project offset portfolio effects and natural gas declines.

Exxon Mobil is the only energy player with a Aaa credit rating (issued by Moody&a;rsquo;s) and its fortress balance sheet and capital discipline give it the financial and operational flexibility we desire. The stock yields a rich 4.5%.

&l;strong&g;Total SA&l;/strong&g; (TOT) is one of the world&a;rsquo;s largest integrated oil and gas companies, with operations in exploration &a;amp; production, refining &a;amp; marketing, and chemicals.

In Q4, TOT earned $1.17 per share, missing consensus by a penny. The company reported an average 2018 crude price of $71 and has been shifting its E&a;amp;P portfolio to assets with lower breakeven production prices. Respective consensus adjusted EPS estimates (in U.S. dollars) for 2019 and 2020 currently reside at $5.35 and $6.03, up from $5.05 in 2018.

The company has a $5 billion share repurchase authorization available and we like that Total&a;rsquo;s production costs are meaningfully lower than most of its large integrated peers and that those costs should continue to drop over the next few years. The stock yields 4.3%.

&l;strong&g;John Reese, &l;/strong&g;&l;a href=&q;https://www.validea.com/&q; target=&q;_blank&q;&g;&l;strong&g;Validea&l;/strong&g;&l;/a&g;

We select stocks based on the methodoligies of many of the stock market&s;s most successful and well-known investors. &l;strong&g;Royal Dutch Shell plc&l;/strong&g; (RDS.A) scores a 95% rating based on the investing approach of the legendary technician Marty Zweig.

Under the Zweig methodology, the P/E of a company must be greater than 5 to eliminate weak companies, but not more than 3 times the current market P/E because the situation is much too risky. Royal Dutch Shell&s;s P/E is 11.23, based on trailing 12 month earnings, while the current market PE is 15.00. Therefore, it passes the first test.

The earnings numbers of a company should be examined from various different angles. Three of these angles are stability in the trend of earnings, earnings persistence, and earnings acceleration. To evaluate stability, the stock has to pass the following four criteria.

The first of these criteria is that the current EPS be positive. Royal Dutch Shell&s;s EPS ($1.35) pass this test. The EPS for the quarter one year ago must also be positive. The firm&s;s EPS for this quarter last year ($0.70) pass this test.

The growth rate of the current quarter&s;s earnings compared to the same quarter a year ago must also be positive. The company&s;s growth rate of 92.86% passes this test.

Another criterion is that a company must not have a high level of debt. A high level of total debt, due to high interest expenses, can have a very negative effect on earnings if business moderately turns down.

If a company does have a high level, an investor may want to avoid this stock altogether. RDS.A&s;s Debt/Equity (38.67%) is not considered high relative to its industry (55.65%) and passes this test.

&l;strong&g;Richard Moroney, &l;/strong&g;&l;a href=&q;https://www.dowtheory.com/&q; target=&q;_blank&q;&g;&l;strong&g;Dow Theory Forecasts&l;/strong&g;&l;/a&g;

Drilling and refining giant &l;strong&g;Chevron&l;/strong&g; (CVX) is joining our Buy List. The stock earns a relatively modest Overall quantitative score of 74, reflecting below average ranks for Quality and Earnings Estimates.

But Chevron seems capable of solid production growth while keeping capital expenditures in check to preserve capital returns for investors. Chevron expects production to rise 3% to 4% annually through 2023, with increased reliance on fracking in the Permian Basin.

Chevron has previously said that production should climb 4% to 7% in 2019, compared to 7% growth last year. Cash f ow should total $30 billion in 2019, assuming a global oil price of $60 per barrel.

That should leave about $4 billion for share repurchases and the rest for the dividend, raised 6% in January. Chevron targets a shareholder yield of 6% this year, which includes both dividends and stock buybacks. Chevron is a long-term buy.

&a;nbsp;

&l;strong&g;Crista Huff, &l;/strong&g;&l;a href=&q;https://cabotwealth.com/premium-services/cabot-undervalued-stocks-advisor/&q; target=&q;_blank&q;&g;&l;strong&g;Cabot Undervalued Stocks Advisor&l;/strong&g;&l;/a&g;

&l;strong&g;Marathon Petroleum &l;/strong&g;(MPC) is a leading integrated downstream energy company and the nation&s;s largest energy refiner, with 16 refineries, majority interests in two midstream companies, 10,000 miles of oil pipelines and product sales in 11,700 retail stores.

The company exceeded market expectations, reporting fourth-quarter earnings adjusted for non-recurring costs of $2.41 per share, far above all analysts&a;rsquo; estimates.

Profit margins were enhanced by processing cheap oil from Canada and by cost savings associated with the October 2018 Andeavor acquisition. Revenue of $32.54 billion missed the $34.0 billion consensus estimate. The company repurchased $675 million of stock during the quarter and $3.3 billion of stock during full-year 2018.

Marathon is an undervalued stock with an attractive, growing dividend. As expected, Marathon recently announced a 15% dividend increase, from $0.46 to $0.53 per quarter.

Consensus earnings estimates reflect slow 2019 growth followed by a huge jump in 2020 EPS. The 2019 p/e is 9.8. The stock offers a yield of&a;nbsp; &a;ndash; yield 3.3%. I expect the shares to eventually reach its previous high at $85. Marathon is a strong buy.

&a;nbsp;

&l;strong&g;Brit Ryle, &l;/strong&g;&l;a href=&q;https://www.angelpub.com/premium-detailed/qc&q; target=&q;_blank&q;&g;&l;strong&g;The Wealth Advisory&l;/strong&g;&l;/a&g;

&l;strong&g;Apache Corporation&l;/strong&g; (APA) is an independent energy company. It explores for, develops, and produces natural gas, crude oil, and natural gas liquids (NGLs) in onshore assets located in the Permian and Midcontinent and Gulf Coast onshore regions and in Egypt&a;rsquo;s western desert and also offshore assets situated in the Gulf of Mexico region and the North Sea region.

The company has beat expectations in each of the past four quarters. The company has also partnered with Kayne Anderson to create new Permian midstream company.

The global oil market is getting a boost thanks to potential deals in the U.S.-China trade talks. And Permian crude is getting a boost thanks to new pipelines coming online. This is creating a perfect situation for Apache investors.

I see these shares heading much higher by the end of 2019. Earnings come out later this month. If they&a;rsquo;re as impressive as I think they could be, then we&a;rsquo;re likely to see another big move after the release. Apache is still a &a;ldquo;Buy.&a;rdquo; The limit entry price is $40, and my 12-month target is $55.

&l;strong&g;Tom Hutchinson, &l;/strong&g;&l;a href=&q;https://cabotwealth.com/premium-services/cabot-dividend-investor/&q; target=&q;_blank&q;&g;&l;strong&g;Cabot Dividend Investor&l;/strong&g;&l;/a&g;

&l;strong&g;Magellan Midstream Partners&l;/strong&g; (MMP) is one of the best pipeline MLPs in the country. It has a massive network of refined product and crude oil pipeline that is connected to more than 50% of U.S. refining capacity. But recent returns for Magellan have been subpar.

Over the past 10 years, the MLP has generated an average annual return of 19.6%. But over the past five years, the average annual return has been a mere 3%, and the stock price is where it was back in October 2013. Yet Magellan has grown earnings by an average of 10.3% per year during those give years.

Magellan sold off some less productive assets last year and will continue somewhat this year. But opportunities for new projects are massive as the energy sector booms. In 2020, Magellan has three huge projects coming online that should boost the bottom line and the market will likely begin to price that in around the middle of the year.

In the meantime, you get more than a 6% yield on a cheap stock that is a behemoth in a rapidly growing industry. It should be worth the wait and the current price is a good entry point.

&l;strong&g;Enterprise Products Partners&l;/strong&g; (EPD) is one the largest midstream energy MLPs in the country with a vast portfolio of service assets connected to the heart of American energy production.

The partnership isn&a;rsquo;t exposed to volatile commodity prices but rather collects a fee for the transport and storage of oil, gas and refined product. Over 90% of earnings are fee based. It&a;rsquo;s at the epicenter of the American energy renaissance.

High quality is something every income investor should seek. And this is the bluest of blue-chip companies in the asset class. It has raised the distribution every year for the past 20 years, and for 58 straight quarters.

Meanwhile, it has just a 60% payout ratio of free cash flow, which enables it to fund projects without incurring too much debt, and has one of the highest credit ratings in the business. It pays no incentive distribution rights to a general partner and can pay all of its distributable cash flow to investors.

Enterprise has $2.1 billion in recently completed growth projects coming on line this year and another $6 billion for the next couple of years. It should grow cash flow by 4% to 9% over the next couple of years, which combined with the 6.2% yield should provide double-digit annual returns.&l;/p&g;

5 Psychological Tricks for Keeping Calm During Market Volatility

For one group of investors, the end of 2018 was a harrowing experience of volatility. In just four months, the Nasdaq fell more than 23% -- a drastic short-term drop. Certain stocks were hit particularly hard: Netflix, Amazon, and Apple saw shares fall by one-third. People phoned their brokers, pulled out their hair, and endured sleepless nights, fretting about whether their precious nest eggs were gone forever.

If this seems extreme, imagine (or recall) what the Great Recession of 2008 was like. Stocks dropped 50% from their peak to trough. Decades of savings and investment gains were wiped out in one fell swoop! This wild volatility created crippling stress for many and put plenty of people's financial futures in jeopardy.

And yet, there has always been a second group with a distinctly different investment strategy. We don't hear much about them, because these people tend not to draw much attention. They have developed ways to cope with wild market swings and movements in such a way that their life isn't affected by volatility. Not only do these people experience equanimity, but they tend to perform better as investors as well. Their time in the market has taught them that such episodes represent a time to buy -- not to panic. 

What's their secret?

Rise above the short-term clouds to get some perspective on volatility. Image source: Getty Images.

Using these five strategies can help you join the calm and composed investors who stick to their buy-and-hold plans, even when the market tanks:

Journal when you buy: Write down your investment thesis, or why you believe in the stock you purchased, and what would have to happen to alter your commitment to the company and sell the stock. Review long-term trends: Putting the market's history into perspective will show you that stock-market corrections are quite minor in the long run. Devise a plan for market volatility: If you're prepared for the inevitable market drops, you'll grow stronger as a result. Put your head in the sand: Limiting how often you check your portfolio is actually good for your mental, emotional, and financial well-being. Remember your "why": Investing can give us a rush, but remembering why we do it in the first place should calm our nerves.

Let's examine these one by one.

1. Journal when you buy

The power of journaling rivals that of compound growth.

Evolutionary psychologists will tell you there's a fundamental mismatch between the environment we are made for and the one we live in. One psychologist, Dr. Mark Van Gurt, describes it:

More than 99 percent of human evolution took place in small-scale societies, hunter-gatherer groups of 50-150 individuals ... Only since the agricultural revolution, the last 1 percent of human evolution, did human societies grow in scale and complexity and this produced toxic ... arrangements for many.

Simply put, our minds and bodies are still made for us to be hunter-gatherers. In that environment, we would rarely experience enormous stressors. But when we did, they were usually life-or-death circumstances (think: tree falling, or lion stalking us). The event happened, a fight-flight-freeze response would set in, we would act, and the situation would be over. We'd either survive or die, and then -- if we survived -- move on with our day.

We don't live in that world anymore. Critically, some stressors that cause the fight-flight-freeze response can be omnipresent -- seeming to never go away. For jittery investors, a major swing in the stock market can trigger this reaction.

That's why keeping an investing journal is so important. Every time you buy a stock, you should:

Lay out your reasons for buying the stock in terms simple enough for an eight-year-old to understand. Forcing yourself to make it this elementary might sound corny, but it will force you to distill your thinking to the core of what matters. Imagine what would have to happen (scenarios like bankruptcy, regulatory issues, revenue drops, leadership changes, or dividend cuts) to make you consider selling the stock. 

This process has been invaluable over my decade of investing. Of course, something impossible to predict might happen that makes me want to sell a stock -- but simply devoting time to visualizing what could happen and practicing bracing through the bad times is a valuable exercise. It also makes it easier for me to make a decision about whether I can realistically buy and hold the stock.

Last summer, the European Union levied a $5 billion antitrust fine on Alphabet, parent company of Google. That sounds like a huge, scary number. Alphabet accounts for more than 10% of my family's portfolio.

But instead of panicking, I reviewed why I bought Alphabet: It's founder-led and mission-driven, and it has more data than any company in the world. The fine, while onerous, didn't change any of those fundamentals, so I resisted selling, and the company has done just fine.

Keeping a journal slows down your thinking. This helps your brain move out of the fight-flight-freeze response that makes you act on instinct, instead engaging the slower-thinking, more calm and analytic part of your brain. That's the part of your psyche you want to depend on when making long-term investment decisions.

2. Review long-term trends

Sometimes, simply backing up and looking at the long-term trends of the stock market is enough to calm investors' fears and frustrations. Let's put the three major stock-market declines into context.

The first is the 1973-1974 stock-market crash where the Dow Jones lost 45% of its value.  In the 1987 crash, the broader market fell 23% in a single day! The third is the Great Recession of 2008.

Each of the corresponding arrows points out where stocks stood when these drops occurred, respectively.

Arrows by author. Image source: YCharts.

The takeaway is simple: Market crashes can be scary, but history is a wonderful teacher. Even if you buy at the absolute worst time, by keeping your diversified portfolio in the market for the long run, it is highly likely it will not only recover, but grow much higher in value. Look at the above graph the next time market volatility gives you the jitters, and consider these scenarios:

Even if you invested at the worst point of 1973, your investment in the market would still have returned 258% (in other words, more than tripled) over the next 20 years. Invested the day before the market dropped 23% in a single day in 1987? Worry not, the next 20 years returned 444%, a quintupling of your money. And if you were unlucky enough to buy stocks on October 11th, 2007 -- at the beginning of the Great Recession -- you'd be OK today. It's only been a little over 11 years, and you're already sitting on gains of 71%. By the time the 20-year time frame is up, who knows how high your shares might be? 3. Devise a plan for market volatility

Here's the thing about market volatility: It's completely normal and natural. Former Motley Fool columnist Morgan Housel crunched the numbers and found this:

Total Drop Occurs This Often

10%	Every 11 months
15%	Every 24 month
20%	Every four years
30%	Once per decade
40%	Once every few decades
50%	Two or three times per century

Putting that in context is enormously helpful. The 20% drop we experienced in late 2018 wasn't the sign that the world was ending. It was a sign that the markets were healthy, following the same general pattern from the past.

Many people think the last bear market was the Great Recession of 2008 and 2009, where the broader market lost over 50% of its value. But that's not true. Between May and October 2011, the S&P 500 index dropped 21.6% -- one of those "one-every-four-year" events. But nobody even remembers that because the markets came roaring back -- returning over 120% over the next five years, including dividends.

There are two things you can do with this knowledge:

Use it to mentally fortify yourself for downturns. Develop a plan for when market volatility occurs.

Housel did exactly that, deciding if he had $1,000 set aside to invest, he would deploy it as such:

Total Drop Money to Invest in Market

10%	$100 or 10% of his investable cash
15%	$220 or 22% of his investable cash
20%	$300 or 30% of his investable cash
30%	$130 or 13% of his investable cash
40%	$125 or 12.5% of his investable cash
50%	$125 or 12.5% of his investable cash

The value of this exercise does not lie in following this plan as gospel. Instead, the value lies in the mental frameworks you employ in devising it. Rather than looking at market drops as a threat, you start to view them as buying opportunities. 

Morgan said:

Will I follow this plan to a T? Probably not. But it got me thinking about volatility. Putting these numbers on paper forces you to think about big market drops as opportunities to exploit, rather than crises to fear. It's actually hard to think about these numbers and not want the market to crash. And most important, it provides a guide to consult when stocks do crater, based on a cool-headed analysis of history rather than an emotional reaction to the guy on TV telling me to panic.

Rest assured, there are as many different plans for market drops as there are investors. Motley Fool Co-founder David Gardner often says he doesn't change his strategy based on the market, instead buying one or two quality stocks every month, no matter what.

In essence, this method is the same as dollar-cost averaging: putting the same amount of cash into the market on a regular schedule. When the market is high, that means you'll buy fewer shares of a company. When the market is low, that same amount of money will buy more shares of the same company. Over time, it theoretically evens out to produce wealth-generating returns.

The only "wrong way" to devise a plan is to panic sell. Selling when the market is down, and below your cost basis for your stocks, means you lock in your losses and eliminate any potential for future gains. By only investing money that you don't need during the next three to five years, you can avoid the temptation to sell in a tizzy when the market plunges. You don't need the money in the near term, so it can stay in the market until it recovers and returns to a bull scenario.

4. Put your head in the sand

Ignorance can be bliss when the market tanks. According to a former employee, Fidelity once did a study to determine which investors performed the best over time, and the results were astounding: The best-performing portfolios were the accounts of people who forgot they had a Fidelity account.

This is a crazy finding -- but it shouldn't that that surprising. Fool contributor Matthew Frankel found most investors get terrible results. While the S&P 500 returned about 11% between 1985 and 2015, the average investor averaged just under 4%.

To put that difference into perspective, $1,000 invested in a fund that simply tracks the market would have turned into roughly $23,000. But if an individual investor kept watching their portfolio every day and trading as a result -- using the 4%-per-year findings -- they would have about $3,250 by the end of 30 years.

Why does this happen? There are lots of possible explanations, but the easiest one is this: When it comes to investing, we are our own worst enemies. If we go back to the psychological mismatch theory, this makes more sense; there was no equivalent of the stock market as we evolved. Too often, we equate the stock market with our sense of safety -- a dangerous conflation.

In tribal times, our friends and family were our source of safety. They almost never disappeared or were wiped out in a moment's notice, and if they were, it was truly a time to panic and activate that fight/flight/freeze reaction. Stocks don't work like that, but our automatic response does -- which makes a strong case for rarely checking our portfolios.

This doesn't have to mean never checking them. Motley Fool analyst Tim Beyers said: 

About a decade ago, I stopped quoting the market and my stocks daily. It just wasn't worth it to get lost in the potential value I was gaining or losing on any given day. Emotional losses (or gains) are like interest paid -- it's painful, it's costly, and it can drain the life out of you.

Spot on. While I do scan my own stocks to identify major moves that might indicate breaking news, I only look at my overall holdings once a month. Adopting a similar technique can be good for your portfolio as well as your emotional and mental health.

5. Remember why you invest in the first place

Finally, think about the reason you're tying your fate to the market's. Remembering the purpose of investing is important when the market is down, but it's enormously important regardless of the economy's state.

Over twomillennia ago, Aristotle postulated that true aim of life was happiness -- or eudaimonia. My guess is that few people would argue with this -- depending on their definition for "happiness." Indeed, an entire new field in psychology -- dubbed "Positive Psychology" -- is starting to shed light on Aristotle's ideas. 

Dr. Martin Seligman led a team of researchers who found that well-being can be achieved through:

Positive emotions -- like joy, excitement, contentment, or physical relaxation. Purpose and meaning -- which includes using one's strengths for something larger than themselves. Healthy relationships with others -- bonding and connecting with other people is key to finding your place in the world. Engagement in life -- losing yourself in your activities, sometimes referred to as "flow." Achievement -- the sense that you are making progress in whatever you are doing.

American culture is exceptional at making us forget about all of these virtues, and instead get caught up in measuring ourselves by the size of our bank (or nest egg) account, and the collection of our possessions. Probably because it's easier to measure our physical state; there's no room for interpretation of your bank balance or your belongings. Measuring the health of your relationships, or the purpose and meaning in your life is a deeper, more complex task. And yet, it is the latter that truly adds years to your life, and that is yearned for by most.

Money's purpose is to do two things:

Provide the basic necessities of food, water, clothing, and shelter. Create the circumstances for personal freedom that allow you to focus on your relationships, meaningful pursuits, and activities that lead to flow.

In his book Flourish: A Visionary New Understanding of Happiness, Seligman admits he dealt with anxiety over his investments during the Great Recession. But he applied the same framework of well-being, and tried to predict how having less money might affect him, and came up with these visualizations:

He would experience less positive emotion, sacrificing conveniences he enjoyed like eating out and massages. This was the biggest drawback. His purpose and meaning would be unchanged. This is a major benefit of finding a job you love -- one you'd continue doing even if you weren't paid. Seligman said that he's so passionate about his work, he'd like to see someone stop him. Paradoxically, his relationships would probably improve as a result of a prolonged downturn. Instead of dinners out, his family would cook together at home; trips would be replaced with staycations that have him and his family interacting with the community. Engagement in what he's doing would also be unchanged. Both his work and his hobby of playing bridge give him a state of flow that's relatively unaffected by his investments. His achievement would be a function of how he performed in what he was doing, not his investments.

As you can see, while positive emotions might dip during a downturn, everything else that makes up his well-being would either stay the same or even improve. Of course, this isn't the case for everyone -- we don't all work jobs we'd continue doing if we weren't paid for it.

But that doesn't mean we should write-off this exercise. In the end, it's a reminder that money is best viewed as a necessary tool. The most conclusive findings say that money itself doesn't actually add to happiness -- it just limits your downside of unhappiness.

Once your basic needs are met, everything else -- purpose, meaning, engagement, relationships, achievement -- is what matters. Remembering this can go a long way in helping you keep your calm during a market meltdown.

Be good to yourself

No investor is perfect. You will make mistakes along the way. Everyone does it. I bought my first share of Alphabet at a split-adjusted $150 -- and sold it a few months later for $300. If I had kept it, I'd be sitting on a seven-bagger investment.

But that's the price of admission to an education in the markets. Be good to yourself when you make mistakes, and don't compound them by quitting investing after a scare. And when the next bear market hits, be sure to use all five strategies above to keep your cool, saving your sanity and growing your money in the long run.

Embraer S.A. (ERJ) Q4 2018 Earnings Conference Call Transcript

Image source: The Motley Fool.

Embraer SA (NYSE:ERJ) Q4 2018 Earnings Conference Call March 14, 2019, 9:30 a.m. ET

Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

Operator

Good morning, ladies and gentlemen, and welcome to the audio conference call that will review Embraer's Fourth Quarter of 2018 Results. Thank you for standing by. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions to participate will be given at that time. If you should require assistance during the call, please press the * followed by 0. As a reminder, this conference is being recorded and webcast at ri.embraer.com.br.

This conference call includes forward-looking statements or statements about events or circumstances which have not occurred. Embraer has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting the business and its future financial performance. These forward-looking statements are subject to risks, uncertainties, and assumptions, including, among other things, general economic, political and business conditions in Brazil and in other markets where the company is present. The words believe, may, will, estimates, continues, anticipates, intends, expects and similar words are intended to identify forward-looking statements.

Embraer undertakes no obligations to update publicly or revise any forward-looking statements because of new information, future events, or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed on this conference call might not occur. The company's actual results could differ substantially from those anticipated in a forward-looking statement.

Participants on today's conference call are Mr. Nelson Salgado, Executive Vice President Finance and Investor Relations, and Mr. Eduardo Couto, Director of Investor Relations.

I would like now to turn the conference over to Mr. Nelson Salgado. Please go ahead, sir.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Good morning, everyone. Thanks for joining our call.

Please start at Slide 4 with a summary of the most recent events related to Embraer and Boeing strategic partnership. After a few months of some uncertainty and speculation, we are very glad that the transaction was approved by the vast majority of our international and local shareholders with 96.8% of shareholder a favorable vote at the extraordinary shareholders meeting held on February 26th. Before the general assembly, we had signed the contracts for Boeing on January 24th, and we had the Golden Share go ahead on January 5th. The deal is still subject to approval from antitrust authorities and satisfaction of other customary conditions. The closing is expected at the end of 2019 subject to all approvals being obtained in a timely manner. We believe the transaction will bring a lot of value to our customers, shareholders, and employees. And Embraer will continue to keep the market informed as we advance in the transaction.

Now, moving to the next slide, Slide 5. We start with business units' highlights. First, on Commercial Aviation. In 2018, we delivered 90 e-jets including the E-jets 1,500th which is a very important milestone for the E-jets but are not many commercial aircraft in the industry that features this level of delivering.

As far as sales activity, we had a very strong year in 2018, especially in the last quarter. We have 207 new firm orders including large orders from important customers like American, Azul, Republic, Skywest, United, and others. With that, our book to view relative to 2018 was better than 2 which is very good. And also, the effect that had on our backlogs.

Moving to the E2 performance. We remember that the first 190-E2 was delivered to Wideroe in April after having received the triple certification from ANAC and FAA. And the operation is going very well. The fleet at Wideroe has reached and accommodated 98.5% of schedule reliability and 99.5% completion rate, which are outstanding figures for the start of operation of a new type.

In terms of the E2 development program, the program continues to advance as planned. We expect to have certification for the 195-E2 in the first half of 2019 with first delivery to large customer Azul in the third quarter of 2019. The development of the E175-E2 progresses as well. During 2019, we will be assembling the first prototype of the 175-E2.

Moving on to Slide 6. We will talk about the Executive Jets highlights. We delivered 91 Executive Jets in 2018, 64 light jets and 27 large jets. We are very proud to announce that in 2018 our Phenom 300 was again the most delivered light jets in the industry. That's for the 7th consecutive year in a row, exceptional results for our Phenom 300.

Regarding new products, we launched the new Praetor 500 and Praetor 600 at NBAA 2018. Those two planes are the most disruptive and technologically advanced midsize and super-midsize jets. They have an unprecedented range in their segments, 3,250 nautical miles for the Praetor 500 and 3,900 nautical miles for the Praetor 600. They are also the best in class in cabin altitude, cabin design, and have an ultra-quiet interior. It is important to highlight that the new Praetor 600 already concluded the flight test campaign with results that exceed the requirement and specifications and the program is on course for first deliveries starting in the second half of 2019. Important also to say that the program is sold out for 2019 and there has been a huge demand from customers for this new product. Finally, as far as customer support is concerned Embraer was ranked #1 in Pro Pilot and #2 in AIN customer support surveys, reinforcing the commitment Embraer has with supporting its customers with excellence.

Moving on to Slide 7, Defense and Security highlights. Starting here with the KC-390 joint venture. As we have been mentioning, the KC-390 joint venture is an integral part of the strategic partnership with Boeing and it will in our view unlock global sales potential and promote new markets for the KC-390. Important to highlight that the KC-390 program is in a very special moment of its life where we in 2019 will finish a long period of almost 10 years in product development and move into a new phase where the KC-390 will be in serial production contributing more than $5 million for revenue will result in dissonance.

The program has already received certification from the Brazilian Civil Aviation Agency and the flight test campaign with two prototypes now exceeds 2000 hours of flights. The first delivery to the Brazilian Air Force is expected to happen in 2019 and we have already aircraft #004 to #009 under different stages of assembly for delivery to the Brazilian Air Force in the next years.

Regarding the Super Tucano, we delivered 9 aircraft in 2018 and got new orders for another 12 aircraft which is a very good result for the Super Tucano program. As far as new opportunities, the Consortium Aguas Azuis formed by Embraer was shortlisted in the Brazilian Navy Corvette Class program. In this program, Embraer will provide combat management and system integration. And finally, regarding services, it was a record year in terms of sales for Defense Services which is something we believe is very important.

Moving now to financial results. Starting at Slide 9, we show our backlog. Embraer ended 2018 with a backlog of $16.3 billion. Important to highlight that in the fourth quarter of 2018, our backlog grew $3 billion. We believe this is an important milestone and reverses the trend of reduction of backlog that we've been observing in the last few years. That increase in backlog was led by commercial aviation sales that we have announced mostly at the Farnborough airshow and was done in the same contracts in the last quarter of 2018 as we have anticipated. But also, new orders for the Praetor aircraft which as I mentioned to you the aircraft is sold out for some period and it's already helping us to accommodate some backlog.

Moving to slide 10, we show deliveries which we've already mentioned. In Commercial Aviation, we delivered 90 planes closing at the middle of our guidance, which was from 85-95. In Executive Jets, we delivered 91 planes, 64 light aircraft and 27 large, in line with our revised outlooks which was exactly 91 aircraft. In Executive Jets, we had lower deliveries in 2018 mostly driven by the announcement of the new Praetors in 2019. This aircraft we will start to deliver in the second half of 2019. Also, the lower deliveries they are a result of our continued discipline in terms of pricing which on the other hand has already started reflecting very positively in the results of Executive Jets as I will mention later on.

On slide 11, we show net revenues. We reached net revenues of $5.071 billion in Embraer as a whole. This revenue was mostly in line with the revised guidance we presented which was $5.1 billion. It is important to mention that our revenues were affected by lower deliveries in Commercial. We at the beginning of the year could get up to 95 deliveries, and Executive as I mentioned before. But also, by the cost base revision that we had to do in the KC-390 that affected both our EBIT but also our revenues regarding the KC-390 and our defense.

Next slide, slide 12, we show SG&A expenses. We continue to show about our trends in SG&A finishing 2018 at about $485 million, broken by $183 million in G&A and 304 million in selling expenses. This continuous reduction is partially driven by our cost-cutting program called Passion for Excellence launched in 2019, but generally reflects the function of the company regarding reducing its costs.

Moving to operating results at Slide 13. We reported 2018 adjusted EBIT of $224 million with a decline in margin of 4.4%. These numbers are slightly above our revised guidance of approximately $200 million and 4% EBIT margin. Breaking our margins by business, we had in 2018 6.5 EBIT in Commercial Aviation, 1.5 EBIT in Executive Aviation, -9.1 in Defense, and 12.5 in Sales and Services. Looking at the margin by business, Commercial and Defense presented a decline in 2018 versus 2017. In the case of Defense, results were affected by the accident with the KC-390, the incident, and we adjusted for part of that. But there was an additional cost that was recorded in the last quarter for the year which we did not adjust. If it was not by this cost, Defense would have been almost break-even despite the difficulties last year.

It is very important to mention that our margin in Executive has recovered. Gross margin has grown almost 500 comparing 2017 to 2018. In 2017 we had a gross margin of 12% and in 2018 the gross margin was 17%. This is very good evidence of our cost discipline and how we are working to really extract value from our products. We expect these trends to continue for the next year.

Next slide, slide 14, we show adjusted EBITDA. Generally speaking, everything that affected the EBIT affected also the EBITDA. We closed the year with $474 million implying a margin of 9.3%. This is also in line with our revised guidance.

Moving to net income. We reported a net loss of $54 million in 2018 mostly due to the weaker operating results and higher financial expense. That result implies a negative margin of 1.1%.

As far as investments at Slide 16, we spent $305 million broken by $94 million in capex and $211 in R&D. Important to mention that we had the important contribution of more than $100 million from suppliers so that the actual activity of our investments was more in the order of $400 million than $300 million. Which means that we are continuing the development of our product portfolio as planned both in Commercial Aviation but also in Executive Aviation with the announce of the Praetors. But the comparison of those results with previous years it shows clearly that we are getting to end of a very strong product development phase that we had in the past and we should expect that change to go in the future.

Moving to free cash flow at Slide 17, we reported a positive free cash generation of $422 million in the fourth quarter. We ended 2018 with a free cash flow consumption of $128 million, which is better than the revised outlook that we gave which was better than the consumption of $200 million. Important to highlight here the strong cash flow generation in the fourth quarter which was better than the fourth quarter of 2017 which was also already good.

Lower investments and accounts receivable were both highlights in the free cash flow. While we ended up the year with a higher than desired inventory of Executive Jets and we did not deliver as many jets as we would have liked. Which means if we had done so our cash flow in the fourth quarter would be even stronger.

Moving to indebtedness at Slide 18. We ended 2018 with around $3.2 billion in cash and $2.6 billion in debt implying net deposition of $440 million. Our fourth quarter 2018 net debt of $440 million was significantly better than the third quarter 2018 net debt of $881 million due to the strong cash generation in the fourth quarter.

Finally, on Slide 19 we show our 2019 outlook that we already presented on the Investor Day in January. Important to note that 2019 will be a different year for Embraer because of the completion of the deal which is expected to happen at the end of the fourth quarter. We expect net revenues to increase to $5.3 billion to $5.7 billion with the delivery of 85 to 95 e-jets and 90-110 business jets. Important to note that in 2019 we only delivered the first two KC-390 to the Brazilian Air Force and we plan to deliver 10 Super Tucanos.

Despite this growth that we expect in revenues, as far as operating results we expect the results to be break even. And that is mainly due to the separation costs that we anticipate that we will incur during 2019 to prepare the carve out of the Commercial Aviation units by the end of the year.

And finally, and very important, as we approved the deal in our general assembly, we committed to paying $1.6 billion in extra dividends to our investors and to start 2020 with Embraer with no leverage and a $1 billion net cash position at the close. These cash targets are very important and will be pursued will all energy during 2019.

With that, we conclude our presentation and would like to open for Q&A.

Questions and Answers:

Operator

Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press the * followed by the 1 key on your touchtone phone. If at any time you would like to remove yourself from the questioning queue, press *2.

Our first question comes from Cai von Rumohr with Cowen and Company.

Jeff Molinari -- Cowen and Company -- Analyst

Hi, yes. Good morning. This is Jeff Molinari on for Cai. Thank you for taking my question. The first question is what were the adjusted EBIT margins by segment for Q4 and also for the year?

Eduardo Couto -- Chief Financial Officer

We had two main adjustments in the EBIT margin. The first one was in the second quarter of 2018 that we had a negative impact from the incident we had with our KC-390 was around $130 million in the second quarter. That was the first impact. And the second one was around $60 million now in the fourth quarter which was an impairment of our Lineage platform on business jets. So, those are the three facts we adjusted in 2018.

Hello? Jeff? Operator? Are we connected?

Operator

Jeff seems to be disconnected so the next question comes from Myles Walton. Mr. Myles Walton, your line is opened.

So, the next question comes from Victor Mizusaki, Bradesco BBI.

Victor Mizusaki -- Bradesco BBI -- Analyst

Hi. I have two questions here. The first one is just a double check in terms of operating margins. So, can I assume that 2018 Q4 the adjusted operating margin in Executive Aviation was I think close to 6%? The other part with regards to the margin in Q4, you mentioned that you had a number of cost complications which came out to $40 million. Is this correct?

Eduardo Couto -- Chief Financial Officer

Sorry, Victor, the first question was regarding the margins on Executive jets in the fourth quarter?

Victor Mizusaki -- Bradesco BBI -- Analyst

Yes.

Eduardo Couto -- Chief Financial Officer

Yeah. We had in the fourth quarter an adjusted margin of 6.5% and for the full year, as Nelson mentioned, 1.5%. Also, important to highlight that the gross margin on executive jets, as Nelson mentioned, had a very strong performance going from around 12% in 2017 to 17% in 2018. The decrease of more than 500 basis points was not fully translated on the operating margins given the lower delivered, but I think it's in line with our focus to recover the cost.

Victor Mizusaki -- Bradesco BBI -- Analyst

Okay. In the case of the Defense business, in Q4 you had a couple of cost revision base can you confirm the amounts of adjustment in Q4?

Eduardo Couto -- Chief Financial Officer

Yeah. We had in fact around $40 million in the fourth quarter in Defense that was not adjusted. So, in the end, we had these negative margins around 9% in Defense for the full year but excluding this $40 million, margins would be slightly negative around 1% or close to break even for Defense. I'm talking about operating margins in Defense for the full year 2018.

Victor Mizusaki -- Bradesco BBI -- Analyst

Okay. My last question here, I wanted to look at your guidance for 2019. You say break-even margin, but this number includes the percentage of cost. So, I don't understand disclosed exactly the amount or the expected cost. What the deal?

Nelson Salgado -- Executive Vice President Finance and Investor Relations

We are not disclosing that value because we are learning about this process as we go deep in the planning. But I think we are confident to say that our margins after these costs will be break even as we mentioned in the guidance.

Victor Mizusaki -- Bradesco BBI -- Analyst

Okay. Thank you.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Thank you.

Operator

Our next question comes from Myles Walton, UBS.

Myles Walton -- UBS Bank -- Analyst

Hey, good morning. I apologize if this question was asked because there was a little bit of a block in the call for a little bit there.

Jeff Molinari -- Cowen and Company -- Analyst

Yeah. Sorry. I think we had --

Myles Walton -- UBS Bank -- Analyst

I want to understand the executive impairment charge and what the source of that was? And also, on the KC-390 the extra costs, can you just clarify where the costs are coming from? Was it the design change or something that is now behind you?

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Okay, Myles. Regarding the Executive Jets, the extra costs come from the impairments of some R&D expenses that we had to amortize regarding the Lineage program. The sales have been slow in line with good accounting practices. We made impairments regarding those values. The Lineage program, the value is $61 million.

Eduardo Couto -- Chief Financial Officer

If I may add, Nelson, it's important to make clear that it's related to the Lineage platform which is the Legacy platform, our old platform that we had. So, it had nothing to do with our new platform. It was 100% related to the Lineage platform.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Yes, which is also in line with our strategy for closing the new platform that we mentioned lately. And the charge on Defense, first we had the $127 million that we recognized with the new operating year, which we have been set apart here. But we had another charge of around $40 million related to insurance that we recognized in the fourth quarter which we did not set apart. Leading the results to this minus 9 EBIT that we showed but that, as we mentioned, we would have something close to minus 1 or 2 if that had not happened as well.

Eduardo Couto -- Chief Financial Officer

If I may add, Nelson, it is still related somehow to the incident that we lost the prototype number 1. That was an insurance charge that brought this additional $40 million charge in the fourth quarter.

Myles Walton -- UBS Bank -- Analyst

Okay. And then you're in production phase up to units #009 for the KC-390? I just wanted to make sure that the costs, the write-offs you're taking now, were not related to the recurring costs of those aircraft? They're related to the development costs, is that right?

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Yes. It is just charges related to product development and most specifically the consequences of the incident that we had last year.

Eduardo Couto -- Chief Financial Officer

It's important to add that we are now going to a transition phase on the KC as we move from the development to the fuel production in which that will have positive effects on the Defense margin going forward. Because the development especially in the last two years we had some additional costs and cost base revisions that we don't see on the serial production. So, it's very important that the KC goes through this transition and starts serial production.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Serial production is a much more stable phase generally speaking. Although, there two comments that we are very proud to think that interfere with production. We have a learning curve to fill those margins and the initial products. We will not be able to present the tip of the margins that we will get once we move ahead in deliveries.

Myles Walton -- UBS Bank -- Analyst

Okay. Thank you.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Thank you.

Operator

The next question comes from Peter Vishenko, Barclays.

Peter Vishenko -- Barclays -- Analyst

Hi, good morning. This is Peter Vishenko with Barclays. Thanks for taking my question. First, can you please discuss where you are on the regulatory approval front? What was the initial feedback from various Antitrust regulators?

Nelson Salgado -- Executive Vice President Finance and Investor Relations

I think we can say that the process is moving well. It's not a simple process but there is nothing that we could highlight here as negative. The process is moving well, and we've already started that in all jurisdictions, which are quite a few.

Peter Vishenko -- Barclays -- Analyst

Okay. And maybe an additional question. When do you plan to file with HRS in the US?

Nelson Salgado -- Executive Vice President Finance and Investor Relations

I'm almost certain that we had done that already. We can confirm that and get back to you, but I am very positive that we have done that already.

Peter Vishenko -- Barclays -- Analyst

Okay. And my second question on the backlog. It seems that looking at the 175-E2, can you maybe provide any color on when you expect the backlog to go there? Also, it seems like your 190-E2 backlog declined by roughly 30 aircraft this year. I am wondering can you both provide the color on that aircraft as well?

Eduardo Couto -- Chief Financial Officer

What is the decline that you're talking about of 30 planes? Sorry, I am not with you.

Peter Vishenko -- Barclays -- Analyst

I mean the old backlog on the 190-E2 were at 74 jets the front order backlog and now it's 43.

Eduardo Couto -- Chief Financial Officer

It's mostly the JetBlue ones, right, I think that we removed.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Those were the old ones.

Eduardo Couto -- Chief Financial Officer

The 190s, if it's the old E 190s, it's the 24 planes for JetBlue that we removed from backlog after the campaign that we had in the middle of last year.

Peter Vishenko -- Barclays -- Analyst

Well, I was referring to the second generation.

Eduardo Couto -- Chief Financial Officer

The second generation?

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Give us a second.

Peter Vishenko -- Barclays -- Analyst

Can you hear me? I'm not sure if you can hear me.

Eduardo Couto -- Chief Financial Officer

Yeah. We had a couple of planes that were removed from the backlog. The most important or relevant ones, as I mentioned, for JetBlue for the new ones, for the E2. We have Air Costa from India that we removed and also the 175-E2s from SkyWest that during the accounting change we had to remove the order, but the orders are still in place. So, there was no change in the order, it was only an adjustment in the backlogs. So, those were the main changes.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

The contract is still in place but as the one conditionality, we made a contract with the change in scope following the US. We removed those from the backlog.

Peter Vishenko -- Barclays -- Analyst

Okay. Fair enough. Thank you, guys. And that's all I have.

Operator

The next question comes from Victor Mizusaki, Bradesco BBI.

Victor Mizusaki -- Bradesco BBI -- Analyst

Just a last question here. With regards to revenues with service and support, can you give the breakdown of how much will stay with Embraer and how much would be transferred to the JV?

Eduardo Couto -- Chief Financial Officer

Yes. We had revenues around $1 billion, so around $400 million will stay at Embraer and around $600 million goes with the Commercial Aviation.

Victor Mizusaki -- Bradesco BBI -- Analyst

Okay. And thinking about margins with personal descent.

Eduardo Couto -- Chief Financial Officer

We have margins around 12% for the consolidated service and support business. The Executive and Defense are likely lower than that and Commercial are likely higher. But it's not a huge difference. It's like Executive and Defense is a mid to high single and Commercial is more like a mid to high teens. So, it's not a big difference.

Victor Mizusaki -- Bradesco BBI -- Analyst

Okay. Thank you.

Operator

Again, if you want to pose a question, please press *1.

The next question comes from Cai von Rumohr, Cowen.

Jeff Molinari -- Cowen and Company -- Analyst

Hi. Thanks again. This is Jeff Molinari on for Cai. Sorry. Apologies for the interruption before. I think I lost connection. I wanted to follow up with another question here on free cash flow. What are your expectations for free cash flow in 2019 excluding separation and tax costs? Will it be positive?

Nelson Salgado -- Executive Vice President Finance and Investor Relations

So, Jeff, we are not opening up that information. So, we are treating the result as the consolidated cash result which will allow us to pay $1.6 billion extra in dividends and start life in Embraer in 2020 with $1 billion in net cash. However, I think we can mention that we expect a strong cash generation in 2019, which if you just consider the amount of aircraft that we ended up in inventory in 2018, we expect those aircraft to go in 2019. And that will help a lot with the cash flow because the outflow associated with the production of those aircraft has already been incurred.

Eduardo Couto -- Chief Financial Officer

If I may add, Nelson, it's important to say that we have already sold more than $100 million of this carryover inventory. So, we are confident that the additional inventory on business jets will be reduced throughout this year.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Yeah. The addition is around $300 million.

Jeff Molinari -- Cowen and Company -- Analyst

Thanks. That's helpful. And if I may with one quick follow up. You offered some initial expectations for 2020 at your investor day in January. Do those still stand or is there anything you can add to that?

Nelson Salgado -- Executive Vice President Finance and Investor Relations

As I mentioned when we reported that, we see that as a conservative estimate, but for now I think it still holds. We don't want to change that.

Jeff Molinari -- Cowen and Company -- Analyst

Thank you.

Operator

This concludes today's question and answers session. I would like to turn the floor back to Mr. Nelson to his closing remarks.

Nelson Salgado -- Executive Vice President Finance and Investor Relations

We want to thank you for attending our call. Thank you very much, guys.

Operator

That concludes Embraer's audio conference for today. Thank you very much for your participation. Have a good day.

Duration: 45 minutes

Call participants:

Nelson Salgado -- Executive Vice President Finance and Investor Relations

Eduardo Couto -- Chief Financial Officer

Jeff Molinari -- Cowen and Company -- Analyst

Victor Mizusaki -- Bradesco BBI -- Analyst

Myles Walton -- UBS Bank -- Analyst

Peter Vishenko -- Barclays -- Analyst

More ERJ analysis

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

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Houlihan Lokey Inc (HLI) Stake Lowered by Prudential Financial Inc.

Prudential Financial Inc. decreased its position in shares of Houlihan Lokey Inc (NYSE:HLI) by 1.8% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 142,061 shares of the financial services provider’s stock after selling 2,612 shares during the quarter. Prudential Financial Inc. owned 0.22% of Houlihan Lokey worth $5,228,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also recently bought and sold shares of HLI. Bank of Montreal Can boosted its holdings in Houlihan Lokey by 0.8% in the fourth quarter. Bank of Montreal Can now owns 33,014 shares of the financial services provider’s stock worth $1,215,000 after purchasing an additional 269 shares during the last quarter. Janney Montgomery Scott LLC boosted its holdings in Houlihan Lokey by 3.8% in the fourth quarter. Janney Montgomery Scott LLC now owns 7,364 shares of the financial services provider’s stock worth $271,000 after purchasing an additional 270 shares during the last quarter. Legal & General Group Plc boosted its holdings in Houlihan Lokey by 13.9% in the third quarter. Legal & General Group Plc now owns 5,308 shares of the financial services provider’s stock worth $238,000 after purchasing an additional 646 shares during the last quarter. Brookstone Capital Management boosted its holdings in Houlihan Lokey by 13.4% in the fourth quarter. Brookstone Capital Management now owns 6,478 shares of the financial services provider’s stock worth $238,000 after purchasing an additional 766 shares during the last quarter. Finally, Meeder Asset Management Inc. boosted its holdings in Houlihan Lokey by 112.0% in the fourth quarter. Meeder Asset Management Inc. now owns 2,109 shares of the financial services provider’s stock worth $78,000 after purchasing an additional 1,114 shares during the last quarter. Hedge funds and other institutional investors own 53.00% of the company’s stock.

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Several equities research analysts recently issued reports on HLI shares. Bank of America upgraded shares of Houlihan Lokey from a “neutral” rating to a “buy” rating and raised their target price for the stock from $46.00 to $47.00 in a report on Wednesday, January 9th. Keefe, Bruyette & Woods restated an “outperform” rating and issued a $47.00 target price on shares of Houlihan Lokey in a report on Friday, January 4th. Finally, Zacks Investment Research cut shares of Houlihan Lokey from a “hold” rating to a “sell” rating in a report on Friday, January 11th. Four research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Houlihan Lokey currently has a consensus rating of “Buy” and a consensus target price of $50.00.

In other news, CFO J Lindsey Alley sold 8,000 shares of Houlihan Lokey stock in a transaction on Friday, February 1st. The shares were sold at an average price of $44.27, for a total transaction of $354,160.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, General Counsel Christopher M. Crain sold 1,000 shares of Houlihan Lokey stock in a transaction on Thursday, January 31st. The stock was sold at an average price of $44.08, for a total transaction of $44,080.00. The disclosure for this sale can be found here. Company insiders own 80.50% of the company’s stock.

Shares of HLI stock opened at $45.57 on Tuesday. Houlihan Lokey Inc has a 12-month low of $34.31 and a 12-month high of $53.20. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.95 and a current ratio of 0.95. The company has a market capitalization of $2.93 billion, a P/E ratio of 19.07, a P/E/G ratio of 1.41 and a beta of 1.03.

Houlihan Lokey (NYSE:HLI) last issued its quarterly earnings results on Tuesday, January 29th. The financial services provider reported $0.77 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.70 by $0.07. The business had revenue of $298.01 million for the quarter, compared to analysts’ expectations of $250.82 million. Houlihan Lokey had a net margin of 14.63% and a return on equity of 21.01%. As a group, equities analysts predict that Houlihan Lokey Inc will post 2.7 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 15th. Stockholders of record on Monday, March 4th will be paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 2.37%. The ex-dividend date of this dividend is Friday, March 1st. Houlihan Lokey’s dividend payout ratio is presently 45.19%.

WARNING: This story was originally reported by Ticker Report and is owned by of Ticker Report. If you are viewing this story on another website, it was stolen and republished in violation of United States & international copyright and trademark law. The legal version of this story can be read at https://www.tickerreport.com/banking-finance/4215586/houlihan-lokey-inc-hli-stake-lowered-by-prudential-financial-inc.html.

Houlihan Lokey Company Profile

Houlihan Lokey, Inc, an investment banking company, provides merger and acquisition (M&A), financing, financial restructuring, and financial advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial Advisory Services. The Corporate Finance segment offers general financial advisory services; and advises public and private institutions on buy-side and sell-side transactions, leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, as well as financial sponsors on various transactions.

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Booz Allen Hamilton (BAH) Sets New 52-Week High at $55.39

Booz Allen Hamilton Holding Co. (NYSE:BAH)’s share price hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $55.39 and last traded at $55.22, with a volume of 2262523 shares traded. The stock had previously closed at $53.32.

Several brokerages recently issued reports on BAH. Zacks Investment Research upgraded Booz Allen Hamilton from a “hold” rating to a “strong-buy” rating and set a $53.00 price objective on the stock in a research note on Wednesday, January 16th. ValuEngine upgraded Booz Allen Hamilton from a “hold” rating to a “buy” rating in a research note on Friday, January 4th. Finally, Wells Fargo & Co set a $58.00 price objective on Booz Allen Hamilton and gave the stock a “buy” rating in a research note on Saturday, February 2nd. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. Booz Allen Hamilton has a consensus rating of “Buy” and an average price target of $53.63.

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The company has a debt-to-equity ratio of 2.54, a current ratio of 1.50 and a quick ratio of 1.50. The stock has a market capitalization of $7.47 billion, a price-to-earnings ratio of 27.47, a price-to-earnings-growth ratio of 1.36 and a beta of 1.14.

Booz Allen Hamilton (NYSE:BAH) last issued its earnings results on Friday, February 1st. The business services provider reported $0.72 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.58 by $0.14. Booz Allen Hamilton had a return on equity of 61.40% and a net margin of 6.31%. The firm had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period last year, the company earned $0.51 earnings per share. The firm’s revenue for the quarter was up 13.1% on a year-over-year basis. As a group, research analysts predict that Booz Allen Hamilton Holding Co. will post 2.72 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, February 28th. Shareholders of record on Thursday, February 14th were given a $0.23 dividend. The ex-dividend date was Wednesday, February 13th. This is a positive change from Booz Allen Hamilton’s previous quarterly dividend of $0.19. This represents a $0.92 annualized dividend and a yield of 1.67%. Booz Allen Hamilton’s dividend payout ratio (DPR) is currently 45.77%.

In other Booz Allen Hamilton news, insider Horacio Rozanski sold 45,000 shares of the stock in a transaction on Thursday, January 31st. The stock was sold at an average price of $49.00, for a total value of $2,205,000.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Charles O. Rossotti sold 10,000 shares of the stock in a transaction on Thursday, February 7th. The stock was sold at an average price of $53.26, for a total value of $532,600.00. The disclosure for this sale can be found here. Insiders sold 83,625 shares of company stock worth $4,281,585 over the last ninety days. 3.56% of the stock is owned by corporate insiders.

Several institutional investors and hedge funds have recently modified their holdings of BAH. BlackRock Inc. increased its holdings in shares of Booz Allen Hamilton by 22.3% during the third quarter. BlackRock Inc. now owns 10,163,902 shares of the business services provider’s stock valued at $504,433,000 after purchasing an additional 1,853,333 shares during the period. JPMorgan Chase & Co. increased its holdings in shares of Booz Allen Hamilton by 541.4% during the third quarter. JPMorgan Chase & Co. now owns 1,885,425 shares of the business services provider’s stock valued at $93,574,000 after purchasing an additional 1,591,484 shares during the period. Norges Bank acquired a new position in shares of Booz Allen Hamilton during the fourth quarter valued at $56,685,000. FMR LLC increased its holdings in shares of Booz Allen Hamilton by 61.8% during the fourth quarter. FMR LLC now owns 3,216,528 shares of the business services provider’s stock valued at $144,968,000 after purchasing an additional 1,228,961 shares during the period. Finally, Robeco Institutional Asset Management B.V. increased its holdings in shares of Booz Allen Hamilton by 38,875.4% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 834,074 shares of the business services provider’s stock valued at $37,591,000 after purchasing an additional 831,934 shares during the period. 95.44% of the stock is currently owned by institutional investors.

COPYRIGHT VIOLATION WARNING: “Booz Allen Hamilton (BAH) Sets New 52-Week High at $55.39” was originally reported by Ticker Report and is the sole property of of Ticker Report. If you are accessing this piece on another publication, it was copied illegally and republished in violation of U.S. & international trademark & copyright legislation. The original version of this piece can be read at https://www.tickerreport.com/banking-finance/4214306/booz-allen-hamilton-bah-sets-new-52-week-high-at-55-39.html.

About Booz Allen Hamilton (NYSE:BAH)

Booz Allen Hamilton Holding Corporation provides management and technology consulting, engineering, analytics, digital, mission operations, and cyber solutions to governments, corporations, and not-for-profit organizations in the United States and internationally. The company offers consulting solutions for various domains, business strategies, human capital, and operations.

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5 Top Stock Trades for Monday: OKTA, TSLA, BIG, NVDA

A dismal jobs number on Friday morning only added pain to the S&P 500, which has somewhat quietly fallen for five straight sessions. Investors are now wondering if the index is set to bounce or whether more downside is in store. As that plays out, we need to keep our top stock trades in focus.

For a breakdown of the S&P 500, check out yesterday’s segment.

Top Stock Trades for Tomorrow #1: Okta

Okta (NASDAQ:OKTA) initially fell by 8% after reporting earnings. However, it didn’t take long for investors to rally the stock back up over $75. In fact, right after the report I said it a rally back over $75 wouldn’t be surprising.

That was due to the company’s strong earnings report and guidance, with only its earnings per share outlook disappointing the Street.

With that said, we were hoping to get a pullback in this growth giant down to the $67 to $68 to area. That was a prior support area, while Fibonacci support is down in this area too. It didn’t get there, with $70 and the 100-day propelling OKTA higher.

Back up over the 50-day and through $80 would make it safe for bulls once again. Below the 50-day puts Friday’s low back on the table.

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Top Stock Trades for Tomorrow #2: Big Lots

Better-than-expected earnings launched Big Lots (NYSE:BIG) higher by 14.5% on Friday. Shares opened at the 100-day, briefly dipped below it, then took off running.

The stock isn’t closing at its session highs, But a run up to the 200-day and possibly $40 certainly looks possible. With an elevated RSI and the significance of $40 as a prior support level, I’d expect this level to act as resistance on the first test.

Bulls can stay long with BIG over the 100-day.

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Top Stock Trades for Tomorrow #3: Tesla

Shares of Tesla (NASDAQ:TSLA) remain volatile — what else is new? — as the headlines just keep on coming. Bulls have to like that the stock has stood up to the $270 test and is now moving higher.

However, below $290 is discouraging and downtrend resistance is very clear. If this name can clear $315, the bulls will be firmly back in charge. A failure to clear this level upon retesting its major moving averages and downtrend resistance mean bears are still in control, but not dominating the name.

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Top Stock Trades for Tomorrow #4: Nvidia

Is Nvidia (NASDAQ:NVDA) becoming range bound between $130 and $160? It’s starting to look that way, although it is technically putting together a string of higher lows as well.

Bouncing on the 50-day is encouraging this Friday, but should it take out this low next week, I’d expect a decline down to $140. From there, look for a bounce off uptrend support. If it fails, the $130 range lows are on deck. Below and NVDA could be in trouble.

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Top Stock Trades for Tomorrow #5: Upland Software

Upland Software (NASDAQ:UPLD) isn’t the biggest company around, but after its top- and bottom-line beat and 17% rally on Friday, the stock could soon be knocking on the door of the $1 billion market cap club.

Over $37 and this move is officially a breakout to new highs. The question is, can it stick?

I don’t really want to go long at Friday’s highs and use a stop-loss at the lows, as it leaves me open to a potential loss of 6.8%. However, dabbling in a name like UPLD and we could have a worse risk/reward than that.

Let’s see what the stock does Monday or within the first few days of the week. If we get a slightly down open that quickly goes green, it gives bulls a quick long trade with an attractive risk/reward. If we get a 1- to 3-day pullback, it could setup buyers with an attractive entry using Friday’s low as their stop-loss.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Ken