Four Club holdings — including Meta Platforms (META) and Pioneer Natural Resources (PXD) — are among the 12 best-positioned stocks right now, investment bank Bernstein told clients Wednesday. We share the favorable outlook on Meta and Pioneer, but aren’t as high on the two other Club names Bernstein highlighted: Qualcomm (QCOM) and Devon Energy (DVN). Understanding Bernstein’s note: The list of 12 stocks were screened for rosy six-month outlooks, using both quantitative modeling and fundamental forecasts from the firm’s research analysts. Bernstein says that since 2004, stocks that are both rated outperform (buy) by its analysts and in the top quintile (or top 20%) of its proprietary quant model beat the S & P 500 by 6.1% on annualized basis. Those stocks are held in high regard because they also did better than those simply rated buy or in the top quintile of the quant model, according to Bernstein. A third characteristic shared by all 12 stock is not being a so-called “crowded trade,” as measured by Bernstein’s Crowding Model. Meta Platforms Bernstein’s take: Meta’s aggressive cost-cutting efforts are likely factored into the social media giant’s stock price in full, according to the firm. But investors may adopt an even more positive attitude toward Meta if the company is able to return to topline revenue growth in the coming months. Analysts expect that to happen due to general improvements in the advertising market and internal changes at Meta to overcome Apple ‘s (AAPL) 2021 privacy changes. META 1Y mountain Meta Platform’s 12-month stock performance. The Club’s take: Meta CEO Mark Zuckerberg has delivered on the expense-reduction strategy that investors including the Club sought, and that’s a big reason why the stock has soared nearly 70% already in 2023. We’re careful about chasing the stock after such a monster move. But big picture, shares should have more room to run and any pullbacks are buying opportunities. Meta rose 2% on Wednesday to just under $205 per share. Pioneer Natural Resources Bernstein’s take: Pioneer has “the simplest and most reliable” operating model within the energy sector, analysts wrote. The firm also championed Pioneer’s variable dividend policy, saying they expect the pure-play Midland Basin producer to continue returning a ton of free cash flow to shareholders over the next five years. Bernstein expects that capital return to equal roughly 40% of its current $47 billion market cap. PXD 1Y mountain Pioneer Natural Resources’ 12-month stock performance. The Club’s take: As we look to consolidate our energy holdings to three stocks from four, Pioneer isn’t going anywhere. A key reason is CEO Scott Sheffield and the operational excellence he’s demonstrated, which aligns with Bernstein’s fundamental outlook on the company. We added to our Pioneer position twice this month — most recently last week at roughly $185 per share, believing that the sell-off in oil stocks grew largely overdone. Pioneer shares rose 1% on Wednesday to roughly $200 each. Qualcomm Bernstein’s take: Wall Street has revised lower its Qualcomm estimates to capture continued inventory challenges in the smartphone market, and now the chipmaker’s shares present investors “with a compelling risk-reward” relative to industry peers, according to the firm. Analysts believe Qualcomm’s inventory glut is starting to improve, and note the stock trades at a sizable discount to the broader semiconductor industry: roughly 12 times forward earnings compared with 23 times for the PHLX Semiconductor Sector index. QCOM 1Y mountain Qualcomm’s stock performance over the past 12 months. The Club’s take: As of now, we’re looking to exit our position in Qualcomm if the stock trades up into the $130s range, which would be a solid move from the $117 level we upgraded the stock at earlier this month. In general, Nvidia (NVDA) and Advanced Micro Devices (AMD) provide us with higher-quality exposure to the chip industry. Seeing strength along with the rest of the chipmakers, Qualcomm rose more than 3.5% to roughly $126 per shre. Devon Energy Bernstein’s take: The firm sees Devon as the best “turnaround story” in the U.S. shale sector, noting that past performance has sometimes been “marred by shaky strategic decisions.” Analysts believe that such issues have been straightened out with a corporate ethos focused on returning capital to shareholders, similar to Pioneer. Devon, like PXD, rose Wednesday, adding roughly 2.5% to nearly $50 per share. DVN 1Y mountain Devon Energy’s 12-month stock performance. The Club’s take: We expect to strategically sell out of Devon into strength, refocusing our energy holdings into what we think are better opportunities. Simply put, we’ve determined we no longer need to own three different exploration and production (E & P) firms: Devon, the aforementioned Pioneer and natural-gas heavy Coterra Energy (CTRA). Devon’s most-recent quarterly results were disappointing and informed this conclusion. When we decide to exit Devon, we will free up some much needed space in the portfolio for other opportunities. (Jim Cramer’s Charitable Trust is long META, QCOM, NVDA, AMD, PXD, DVN, AAPL. 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.
The logo of Meta Platforms is seen in Davos, Switzerland, May 22, 2022.
Arnd Wiegmann | Reuters
Four Club holdings — including Meta Platforms (META) and Pioneer Natural Resources (PXD) — are among the 12 best-positioned stocks right now, investment bank Bernstein told clients Wednesday.
ALSO, the electric bike spin-off from EV-maker Rivian, just dropped some welcome news: a more affordable version of the bike is coming. Officially called the TM-B, the new model will launch at $3,500, coming in a full $1,000 under the previously announced $4,500 TM-B Performance we saw last month.
While the Performance model leaned heavily into premium components and higher output, the new TM-B appears designed to bring the platform’s eye-catching design to a wider audience.
The TM-B includes much of the same design and basic feature set as the TM-B Performance, though the $1,000 lower price tag does come from the company filet-ing a few corners. The bike drops from the 10x assist of the Performance edition to just 5x assist (presumably meaning half the power, but it’s hard to say since e-bike companies generally don’t list power as a multiple of rider input). It also has a smaller battery, more basic coil spring shock instead of the nicer and lighter air shock, fewer ride modes, and doesn’t come with the same premium styling options.
The bike does retain ALSO’s interesting drive-by-wire solution though, which means that there isn’t a physical connection between the pedals and the bike. Instead, riders turn pedal cranks connected to a generator that converts pedaling energy into electrical energy to feed the rear wheel through a Gates carbon belt drive.
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Hydraulic disc brakes along with ABS-braking come standard on both models, and the cockpit includes a compact color display with app connectivity, offering basic ride metrics and configurable assist modes.
ALSO hasn’t committed to an exact delivery date, but reservations are now open.
Electrek’s Take
A $3,500 entry point is undeniably better news for fans of ALSO’s design language who weren’t ready to shell out $4,500. However, I still seem to be one of the few in the industry who are hesitant to believe there is a path to profitability here. Americans don’t buy $4,500 e-bikes, at least not in high volume, and they don’t really buy $3,500 e-bikes, either.
It’s not that the bike isn’t worth it – ALSO’s engineers should be commended for stuffing a crazy amount of tech and innovation into this bike. But it simply won’t matter when the bike doesn’t sell very many units and ALSO has to keep making payroll on its huge workforce comprised of many expensive engineers and other tech roles. It’s very close to the same playbook that we watched sink other tech-forward e-bike companies like VanMoof, which went bankrupt after it couldn’t keep up with servicing its expensive and proprietary e-bike tech while trying to float a massive workforce.
Frankly, I’m a bit confused. Most basic e-bike media seems to be going nuts over the thing, and I’m the only one pointing out that the king appears to be walking around naked.
Also, the timing here is… odd.
Good news usually gets announced on a Tuesday morning, not sent to us at 4:56 PM on a Friday, right as everyone logs off and heads into the weekend. The classic “Friday news dump” is where companies hide things they don’t want attention on – not where they brag about slicing $1,000 off the entry price of a new model. A head scratcher all around.
Either way, a lower-priced TM-B is objectively good news. The problem is, it might just be shouting into the wind.
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Founded in 1689, Husqvarna was a musket maker for the king of Sweden – but now, the company best known for quirky motorcycles and commercial riding mowers is becoming an innovator in the field of robotics, and its latest fleet of electric autonomous mowers are eager to get grazing.
Husqvarna’s autonomous lawnmowers made history earlier this year at the AIG Women’s Open, when they became the first autonomous groundskeeping solution to see duty during a UK Major golf week.
“At the AIG Women’s Open, the Husqvarna portfolio is helping us deliver this goal through improved resource management, regular lightweight mowing and reduced carbon usage,” explains Royal Porthcawl’s Course Manager, Ian Kinley, who has championed the use of robotic technology at the course. “With the AIG Women’s Open set to be the largest-ever women’s sporting event in Wales, we know there’s tremendous pressure to produce playing surfaces that are worthy of such a high-profile event.”
Events like the AIG Women’s Open are proving that the little robot Huskies can get the job done quietly, sustainably, and with significantly less operator input. As such, you’d think everyone at Husqvarna would be excited about them.
You’d be wrong. The company’s franchise dealers have been hesitant to push them forward, effectively putting the parent company in the position of going B2C, or going home.
“Dealers live and breathe the previous technology,” said Yvette Henshall-Bell, Husqvarna’s President of its Forest and Garden division for Europe, in that same Forbes piece. “They want to protect that servicing, that aftermarket revenue. Whereas if they really thought about what the customer’s problems are and the job to be done, they would be looking at a completely different solution.”
A solution, frankly, that looks a lot like a little robot mower.
The bigger CEORA can handle up to 18 acres of ground twice each week, while the Automower, with its 80V battery and pinpoint precision EPOS (Exact Positioning Operating System) software, can handle another 2.5 acres. Both are fully electric, and can guide themselves back to their pens to recharge as needed.
Prices aren’t public, but the Husqvarna CEORA and Automowers are available as part of a custom lease package through Husqvarna Finance that will include access to the company’s customizable back end and ongoing support. Check with your local dealer for more.
Electrek’s Take
As a typically pro-union, pro-labor type of guy, I am hesitant to heap praise upon a robot taking away anyone’s job. That said, it does seem to be difficult for landscapers and construction crews to keep and find good labor at rates they can afford (and, let’s face it – the current Trump Administration isn’t going to be making that any easier). As such, if companies like Husqvarna and John Deere and Einride and others can build a demonstrably better mousetrap at a compelling price point … good for them. (?)
Let us know what you think in the comments.
SOURCES: Forbes, Golf Monthly; images by Husqvarna.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Apple CarPlay possibly coming to Tesla cars, VW getting access to Superchargers, a Toyota electric pickup, and more.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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