Wells Fargo (WFC) and Halliburton (HAL) headline a group of five dividend-paying Club stocks that are expected to post robust earnings growth this year. The bank and oilfield services firm jumped off the page in our latest screen of Jim Cramer’s Charitable Trust, the portfolio we use for the Club. We wanted to see which holdings are projected to boost per-share earnings this year well above the roughly 2% earnings growth estimated for the overall S & P 500 . We sought to ensure they’re paying dividends, too, an important part of capital return strategies along with share repurchases. (We highlighted the Club’s buyback royalty last week.) Investors should also pay attention to valuation, so we excluded stocks trading above the S & P 500’s multiple of 18 times forward earnings. (Calculating a forward price-to-earnings ratio, a common valuation metric used by investors to compare stocks, starts with a company’s stock price or an index level and then dividing it by the next 12 months earnings-per-share estimates.) The full list of stocks that passed this screening test: Wells Fargo, Halliburton, Cisco Systems (CSCO), Caterpillar (CAT) and Morgan Stanley (MS) Before we get into some commentary on each, here are the full parameters we used for this analysis as of the close after Tuesday’s Federal Reserve-driven selloff. Calendarized 2023 EPS growth of at least 10%. Current dividend yield above 1% Forward price-to-earnings ratio of 18 or below. Note: For this story, we used calendarized earnings and estimates – meaning, we compared what a company earned in calendar 2022 to what Wall Street expects it to earning in calendar 2023. Because companies follow different fiscal years – many end in December, but some end in June and others in January or September – this approach offer some standardization. This allowed for better comparison to Wall Street’s 2023 estimates for S & P 500 earnings. 1. Wells Fargo Estimated 2023 EPS growth: 50.7% Dividend yield: 2.7% Forward P/E: 9.4 WFC 1Y mountain Wells Fargo’s stock price over the past 12 months. Bank stocks came under pressure Tuesday. However, we like Wells Fargo over the long term, believing the bank’s turnaround efforts under CEO Charlie Scharf will continue to create value. More immediately, management’s expense discipline is poised to support earnings this year, on top of the benefit Wells Fargo receives from higher interest rates. Wells Fargo’s dividend rewards investors for their patience, plus its buyback was restarted this quarter. We have a buy-it-here 1 rating on Wells Fargo. The average price target from analysts covering the stock represents a 20% gain from Tuesday’s close of $44.45 per share. 2. Halliburton Estimated 2023 EPS growth: 41.02% Dividend yield: 1.7% Forward P/E: 12.43 HAL 1Y mountain Halliburton’s stock performance over the past 12 months. Demand for Halliburton’s services is robust following years of underinvestment in drilling capacity, which helps give the company tremendous pricing power to boost profitability. “Our completions calendar is fully booked and pricing continues to improve across all product service lines,” CEO Jeff Miller said on Halliburton’s most recent earnings call, in late January. We’re also fans of Halliburton’s new plan to return at least half of its annual free cash flow back to shareholders through dividends and buybacks. While that strategy is similar to those deployed by the Club’s three other energy stocks — Pioneer Natural Resources (PXD), Coterra Energy (CTRA) and Devon Energy (DVN) — Halliburton is a different kind of company. This makes its earnings relatively less dependent on the price of oil than those three exploration and production (E & P) firms. We have a 2 rating on HAL shares, meaning we’d wait for additional weakness before considering whether to add to our position. The average price target from analysts who cover Halliburton is roughly 31% above Tuesday’s close of $37.85. 3. Cisco Systems Estimated 2023 EPS growth: 14.88% Dividend yield: 3.2% Forward P/E: 12.38 CSCO 1Y mountain Cisco’s stock performance over the past 12 months. Cisco’s sales and profits have topped Wall Street expectations for three quarters in a row, including its most recent report, in mid-February , which was accompanied by a full-year guidance hike for revenue and earnings. However, questions still persist about whether Cisco is just feasting on the sizable backlog accumulated during the Covid pandemic and could run into challenges once it normalizes. With that skepticism about new order growth present, Cisco shares are up less than 1% since the company’s impressive results Feb. 15. We have a 2 rating on the stock. Meanwhile, the average price target from Cisco analysts on Wall Street is about 16% higher than where the stock closed Tuesday at $48.91 per share. 4. Caterpillar Estimated 2023 EPS growth: 14.71% Dividend yield: 2% Forward P/E: 15.5 CAT 1Y mountain Caterpillar’s stock performance over the past 12 months. Like Halliburton, Caterpillar sells into end markets that are prosperous and well-positioned to stay that way for the foreseeable future. Caterpillar, in particular, benefits from Washington’s infrastructure spending bill, which funds projects that need the company’s construction and mining equipment. This demand for Caterpillar’s products should allow the industrial powerhouse to raise prices when necessary, a dynamic that’s good for earnings and on display in its fourth-quarter results . We have a 1 rating on the stock. The average price target from analysts covering the stock implies a 4% gain from Tuesday’s close of $246.14 per share. 5. Morgan Stanley Estimated 2023 EPS growth: 13.84% Dividend yield: 3.2% Forward P/E: 13.3 MS 1Y mountain Morgan Stanley’s stock performance over the past 12 months. Morgan Stanley’s business transformation — from the boom-and-bust world of investment banking into the more stable realm of asset management — is core to our rationale for being shareholders. And, it’s continuing to play out according to plan. We see the bank as a stock to hold for the long term. In addition, Morgan Stanley pays a solid dividend, yielding over 3% annually at current levels, and buys back healthy amounts of stock. That rewards us for our patience. We have a 2 rating on Morgan Stanley shares. The average price target from analysts who cover Morgan Stanley is about 6% above the stock’s closing price of $96.06 on Tuesday. (Jim Cramer’s Charitable Trust is long WFC, HAL, CSCO, CAT and MS . See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Workers walk towards Halliburton Co. “sand castles” at an Anadarko Petroleum Corp. hydraulic fracturing (fracking) site north of Dacono, Colorado, U.S., on Tuesday, Aug. 12, 2014.
Jamie Schwaberow | Bloomberg | Getty Images
Wells Fargo (WFC) and Halliburton (HAL) headline a group of five dividend-paying Club stocks that are expected to post robust earnings growth this year.
National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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