How to Invest in Diabetes Stocks

Where there’s a problem, there’s an opportunity.

Diabetes certainly presents a huge problem. It’s the seventh-highest cause of death in the United States. It’s also one of the fastest-growing diseases: At 29 million, the number of people in the U.S. with diabetes is nearly triple the number 20 years ago. And the problem isn’t limited to the U.S.; diabetes is also the fastest-growing chronic disease in the world.

Many publicly traded companies, both large and small, are developing new drugs and medical devices for diabetes care. The opportunities for investors lie in buying the stocks of the companies most likely to succeed in the growing diabetes market. Here’s what you need to know about how to invest in diabetes stocks.

Physician holding card with "diabetes" written on it

Image source: Getty Images.

What is diabetes?

Before investing in diabetes stocks, it’s important to understand exactly what diabetes is: a common disease that occurs when individuals’ blood glucose (“blood sugar”) levels become too high.

Glucose enters the bloodstream from food. Normally, insulin, a hormone produced by the pancreas, helps make sure the glucose moves from the blood to cells, to provide energy for those cells. But when the body doesn’t make enough insulin — or doesn’t use it properly — glucose stays in the blood rather than reaching the cells. If not managed, diabetes can lead to several serious health problems; these include eye problems, dental disease, foot problems, heart disease, kidney disease, nerve damage, and stroke.

The A1C test is the most frequently used method of testing for diabetes. It’s a blood test that measures the amount of hemoglobin — a protein in blood that carries oxygen — with attached glucose. The measurement reflects the patient’s average blood glucose levels over the previous three months. A1C levels are reported as a percentage, with a higher percentage representing higher blood glucose levels. Individuals with diabetes have A1C levels of 6.5% or higher.

How big is the diabetic population?

More than 30 million Americans have diabetes, according to the Centers for Disease Control and Prevention (CDC). Another 84 million have prediabetes — where blood glucose levels are high (between 5.7% and 6.4%) but not high enough to be considered diabetes. Prediabetes is a risk factor for diabetes, and the higher the patient’s A1C level is, the greater the risk.

Types of diabetes

There are three common types of diabetes, along with other less common types of the disease.

Type 1 diabetes

With type 1 diabetes, the body doesn’t make insulin at all. Most frequently this is because the immune system attacks cells in the pancreas that produce insulin. Patients with this type of diabetes must take insulin every day to live. Around 1.25 million Americans have type 1 diabetes, with the disease typically diagnosed in children and young adults.

Type 2 diabetes

The most common form of diabetes is type 2 diabetes. With this type, the body either doesn’t produce enough insulin, or doesn’t use it very well. Type 2 diabetes can be caused by several factors, including lack of physical activity, being overweight, insulin resistance, and genetics. Around 28 million Americans have this form of the disease.

Gestational diabetes

Gestational diabetes occurs in 2% to 10% of pregnant women in the U.S. Changes during pregnancy, such as increased production of hormones and weight gain, cause the body to use insulin less effectively; as a result, the body can’t make enough insulin. Around 50% of women with gestational diabetes go on to develop type 2 diabetes.

Other types of diabetes

Two other less common types of the disease are monogenic diabetes and cystic-fibrosis-related diabetes. “Monogenic” diabetes results from changes in a single gene (the more common forms are “polygenic”); this type accounts for 1% to 4% of all cases of diabetes.

Cystic-fibrosis-related diabetes (CFRD) occurs when the thick, sticky mucus associated with cystic fibrosis (a genetic disease) causes scarring of the pancreas. This scarring results in the pancreas being unable to make enough insulin. More than 30,000 Americans have cystic fibrosis, with 20% of adolescents with the disease also suffering from CFRD and between 40% and 50% of the adults having CFRD.

How is diabetes treated?

Some cases of Type 2 diabetes can be managed through diet and exercise. However, type 1 diabetes and many cases of type 2 diabetes require more involved treatment. There are several components that can be part of managing and treating diabetes.

Glucose monitoring

Monitoring glucose levels is critical for both type 1 and type 2 diabetic patients.

Individuals with type 1 diabetes typically must check their glucose levels four to 10 times per day, including prior to eating, before and after exercise, and before going to sleep. Some type 1 patients must also check their glucose levels during the night. Also, some people with type 1 diabetes use continuous glucose monitors (CGMs), devices with sensors beneath the skin that check blood glucose levels every few minutes.

Type 2 diabetic patients usually must monitor their glucose levels at least twice each day — before breakfast and dinner. Some individuals with type 2 diabetes must check their glucose levels before each meal and at bedtime.

Insulin

All type 1 diabetic patients and many type 2 diabetic patients must take insulin. There are four key types of insulin:

Type

How fast the insulin begins to work

Period when the insulin is most effective

How long the insulin works

Rapid-acting 15 minutes after injection ~1 hour 2-4 hours
Short-acting 30 minutes after injection 2-3 hours 3-6 hours
Intermediate-acting 2-4 hours after injection 4-12 hours 12-18 hours
Long-acting Up to 4 hours after injection Lowers glucose levels relatively evenly with minimal peak Up to 24 hours

Data source: American Diabetes Association.

Insulin can be administered using a variety of devices:

Needle and syringe Insulin pen (an easy-to-use penlike device for self-injection) Insulin pump (a small device that delivers regular small doses, and higher doses when needed) Inhaler Injection port (a short tube inserted beneath the skin) Jet injector (a high-pressure insulin spray)

Other medications

Some type 2 diabetic patients also are prescribed non-insulin medications. Common types of diabetes medications include:

Type of drug

How the drugs work

Examples

Sulfonylureas

Stimulate beta cells in the pancreas to produce more insulin Diabinese, Glucotrol, Micronase
Biguanides Decrease the amount of glucose produced by the liver Metformin
Meglitinides Stimulate beta cells in the pancreas to produce more insulin Prandin, Starlix
Thiazolidinediones Make insulin more effective and decrease the amount of glucose produced by the liver Avandia, Actos
DPP-4 inhibitors Prevent the breakdown of GLP-1, a peptide that reduces blood glucose levels Januvia, Onglyza, Tradjenta
SGLT2 inhibitors Help the kidneys reabsorb glucose Invokana, Farxiga, Jardiance
Alpha-glucosidase inhibitors Prevent the breakdown of starches, thereby reducing glucose levels Glyset, Precose

Data source: American Diabetes Association.

Factors driving the diabetes market

By 2030, diabetes is projected to affect nearly 55 million Americans and 552 million people worldwide. In the U.S., total annual medical and societal costs related to diabetes are projected to increase by 53% to more than $622 billion. And the global total direct and indirect cost of diabetes is estimated to almost double by 2030 to $2.5 trillion.

Several factors are driving growth in the diabetic patient population and increased spending on diabetes.

1. Aging populations

One key trend that will likely increase the number of cases of diabetes is the growth in senior populations across the world. As people age, they’re less likely to get enough exercise, which can result in added weight — both of which are key factors that can contribute to type 2 diabetes.

2. Lower levels of physical activity in youth

Not just the older part of the population is a cause for concern. Children and adolescents are also getting less physical activity, which has already led to a higher prevalence of type 2 diabetes in youth. Only one in three U.S. children is physically active every day, according to the U.S. Department of Health and Human Services. Children spend more than seven and a half hours a day, on average, in front of a computer, smartphone, TV, or video game screen.

3. Developing nations adopting Western lifestyles

Another driver of greater diabetes prevalence comes from developing countries. As the middle classes expand in these nations, their citizens are more likely to adopt lifestyles associated with the Western world, including unhealthy diets and less exercise.

4. New drugs and devices for managing diabetes

Obviously, the increased numbers of patients diagnosed with diabetes will play a key role in higher costs. Ironically, better treatments for diabetes are also anticipated to contribute by prolonging the lives of patients with diabetes, which increases the costs over the long run of managing their related health problems. In addition, new drugs and devices for managing diabetes are more expensive than older products, driving costs up even more.

Woman on couch testing her glucose levels

Image source: Getty Images.

Diabetes stocks

Diabetes stocks fall into three broad categories: Drugmakers, medical-device makers, and companies that market medical supplies for diabetes. Below is a list of diabetes stocks with market caps of at least $200 million.

Company

Category

Market Cap

Forward P/E

Dividend Yield

Abbott Laboratories (NYSE:ABT) Drugs $109 billion 19.37 1.88%
AstraZeneca (NYSE: AZN) Drugs $93 billion 19.70 3.97%
Becton Dickinson and Co. (NYSE: BDX) Medical supplies $60 billion 17.74 1.29%
DexCom (NASDAQ: DXCM) Medical devices $8 billion N/A N/A
Eli Lilly and Co. (NYSE: LLY) Drugs $85 billion 14.91 2.77%
Insulet (NASDAQ: PODD) Medical devices $5 billion 273.03 N/A
Johnson & Johnson (NYSE: JNJ) Drugs, medical devices $325 billion 14.16 2.57%
Lexicon Pharmaceuticals (NASDAQ:LXRX) Drugs $1 billion N/A N/A
MannKind (NASDAQ: MNKD) Drugs $270 million N/A N/A
Medtronic (NYSE: MDT) Medical devices $117 billion 15.36 2.14%
Merck & Co. (NYSE: MRK) Drugs $159 billion 12.99 3.22%
Novo Nordisk (NYSE:NVO) Drugs $116 billion 18.29 2.61%
Pfizer (NYSE: PFE) Drugs $209 billion 11.62 3.82%
Regeneron Pharmaceuticals (NASDAQ: REGN) Drugs $32 billion 13.95 N/A
Sanofi (NYSE: SNY) Drugs $95 billion 10.75 4.64%
Senseonics Holdings (NYSEMKT: SENS) Medical devices $447 million N/A N/A
Tandem Diabetes Care (NASDAQ: TNDM) Medical devices $711 million N/A N/A

Data source: Yahoo! Finance. P/E = price-to-earnings ratio; N/A = not applicable. Data as of May 25, 2018.

Factors to consider in evaluating diabetes stocks

What should you look for in a diabetes stock? Well, for starters, you’ll want to evaluate the company just as you’d research any potential investment. Key factors to consider include:

1. Diabetes products’ contribution to total revenue

How significant is the diabetes market to the company? A company that makes most of its revenue in other ways won’t benefit as much from the growth in the diabetes market.

Pfizer, for example, co-markets new diabetes drugs Steglatro, Steglujan, and Segluromet with Merck. But those are the only diabetes drugs in Pfizer’s lineup; although they’re expected to become a blockbuster franchise for the two companies, diabetes will still represent only a small portion of Pfizer’s overall revenue.

If you are looking to put money behind the diabetes market specifically, investing in a stock like Pfizer might not be your best bet. Buying a pure-play stock like Senseonics gives you greater exposure to the diabetes market, but it’s also riskier than a diversified company like Pfizer. If this market doesn’t grow as quickly as projected, it would have a much greater negative impact on Senseonics than it would Pfizer.

2. Competitive advantages and risks

Although the diabetes market is huge, it’s still very competitive. Companies that enjoy competitive advantages stand a better chance of long-term success.

However, even successful products face the risk of losing market share to a rival. When brand-name drugs lose patent exclusivity, other companies can launch cheaper generic versions of the drug. With a biologic drug — one made from a living organism or its products — rivals can launch knockoff biosimilars after it loses patent exclusivity.

Of course, a drug doesn’t have to have its patents expire to lose market share. New drugs can come on the scene that are more effective, safer, and/or less costly.

3. Development risks

The drug development process is risky. This process begins with preclinical testing in animals. If that testing goes well, approval must be obtained from regulators to advance to testing in humans.

There are usually three phases of clinical testing of a new drug in humans. Phase 1 typically involves only a few patients and focuses on assessing the safety of the drug. Phase 2 includes more patients and evaluates the efficacy of the drug in addition to safety. Phase 3 clinical studies are usually much larger and take more time — often between one and four years. These phase 3 studies focus on efficacy and potential adverse reactions. If drugs are shown to be successful in clinical testing, drugmakers submit for regulatory approval by the U.S. Food and Drug Administration (FDA) and similar agencies in other countries.

Each step in this process holds the potential for failure. For every 10 drug candidates that start in phase 1 clinical studies, on average only one will make it all the way to approval.

The process for winning approval for new medical devices targeting diabetes care also requires several hurdles to be jumped. Companies must first test prototypes of the new medical devices in controlled settings that don’t involve humans. The pathway to approval then depends on the risk that the device presents. Devices that hold significant risks for patients must go through clinical trials and FDA review similar to that for new drugs. There’s no guarantee that a new medical device will be cleared for marketing by the FDA.

So what should investors do about these development risks? Choosing stocks with pipeline candidates in late-stage development is less risky than picking stocks with early-stage drugs. Also, companies with more pipeline candidates have more “shots on goal,” which improves the overall chances of success.

4. Reimbursement risks

Once a drug or medical device wins regulatory approval, there’s another challenge: securing reimbursement. In the U.S., pharmaceutical and medical-device companies must negotiate with health insurers to get their products covered for reimbursement. Drugmakers also have to negotiate with pharmacy benefits managers (PBMs) — third-party administrators of programs that attempt to control prescription drug costs for their customers. In Europe, where universal healthcare plans are paid for by national governments, companies must negotiate pricing on a country-by-country basis.

It’s possible that a new product can get a green light from regulatory agencies but not win favor with payers. Even if a product does secure reimbursement coverage, there’s no guarantee that the desired price will be negotiated. Payers can also put additional obstacles in the way, such as mandating that patients obtain prior authorization before using a new product. All of this is to say that just because a new product is approved, that doesn’t mean you can count on it succeeding commercially.

Top diabetes stocks to consider

So in light of these key factors and risks, what are the best diabetes stocks to consider? I think three especially stand out.

Abbott Labs

Although Abbott Labs doesn’t currently detail how much of its revenue is generated from diabetes-care products, diabetes is becoming an increasingly important growth driver for the company. This new dynamic is primarily the result of FDA approval in September 2017 for Abbott’s new flash glucose monitoring system FreeStyle Libre.

It’s important for many diabetic patients to continuously monitor their blood glucose levels. The drawback to most continuous glucose monitoring (CGM) systems is that they require patients to calibrate the systems by sticking their fingers several times per day to test blood glucose levels.

FreeStyle Libre eliminates the need for those pesky finger sticks, and has a much lower cost than most CGM systems. As you might imagine, those are significant competitive advantages for Abbott. Dexcom recently launched its G6 CGM system that doesn’t require finger sticks, but it’s more expensive than the FreeStyle Libre.

Abbott Labs is highly unlikely to need to raise any cash by issuing more stock: The company reported more than $4 billion in cash, cash equivalents, and marketable securities at the end of the first quarter. Abbott also has one of the most stable dividends around, with the company paying a dividend every quarter since 1924 and increasing its dividend payout for 46 consecutive years — making it a longtime member of the elite Dividend Aristocrats.

Lexicon Pharmaceuticals

Lexicon Pharmaceuticals is considerably more risky than Abbott Labs. The company only has one FDA-approved product right now — Xermelo, for carcinoid syndrome diarrhea; the drug launched in the first quarter of 2017. Lexicon awaits regulatory approval for its first diabetes drug, sotagliflozin.

So why consider buying Lexicon stock? Wall Street analysts think it could be one of the fastest-growing diabetes stocks on the market this year. That’s for good reason: If approved, sotagliflozin will be the first combination SGLT1/SGLT2 inhibitor.

SGLT2 (SGLT stands for “sodium-glucose linked transporter,” and the numbers denote the type of cotransporter) is responsible for most of the glucose reabsorption performed by the kidneys. SGLT1 is responsible for glucose absorption in the gastrointestinal tract, and, to a lesser extent than SGLT2, glucose reabsorption in the kidneys. Sotagliflozin could be a huge winner because it’s potentially more effective than SGLT2 inhibitors such as Invokana and Jardiance. As an added bonus, it treats both type 1 and type 2 diabetes.

Novo Nordisk

Novo Nordisk ranks as one of the leaders in the diabetes drug market. The Danish drugmaker’s insulin products Levemir, Tresiba, NovoMix, and NovoRapid are huge moneymakers. But the main reason I like Novo Nordisk is the company’s newer products.

The FDA granted approval to type 2 diabetes drug Ozempic in December. Market research firm EvaluatePharma thinks that Ozempic will be the second-biggest new drug launched in 2018, with more than $2.7 billion in annual sales by 2022. I also like the prospects for Novo’s obesity drug Saxenda, which I see as a great fit with the company’s diabetes lineup.

Don’t forget Novo Nordisk’s dividend, either. Over the last 10 years, investors received an additional 78% in total returns thanks to the drugmaker’s dividend. And with a payout ratio of less than 50%, Novo has plenty of flexibility for dividend hikes in the future.

Unmet opportunities

There are also two unmet opportunities in diabetes that investors should be aware of.

One is in new products that help prevent the disease. Type 2 diabetes is largely preventable through diet and exercise. New superfoods created by gene editing could be game-changers down the road, helping people avoid gaining extra weight that could make them more likely to develop diabetes.

Another is in more convenient ways to monitor glucose levels. Abbott’s FreeStyle Libre is a fantastic innovation on this front, but more advances could be on the way. For example, Alphabet’s Verily Life Sciences unit is working with Novartis to develop a smart contact lens that senses glucose levels in tears. These contact lenses would change color if diabetic patients’ glucose levels aren’t where they need to be.

Such developments are likely years down the road, at best. But diabetes is such a huge problem that making these technologies become reality should be worth the effort.

Rake In Double-Digit Profits from Natural Gas’s Stealth Rally

Investors all but wrote off natural gas as oversupply pushed prices down, but gas prices are sneakily rising to last year’s levels. That’s turning one of the best natural gas companies you can own into a must-buy right now.

Rake In Double-Digit Profits from Natural Gas's Stealth Rally

Natural gas prices spiked to a one-year high of $3.51 mbtu in January, but collapsed in February. Gas prices plummeted 27% in little more than two weeks between the end of January and beginning of February.

While the plunge sent natural gas prices to their lowest point since 2016, gas prices typically drop after the worst part of winter ends. Natural gas prices tend to rise in the winter, as people use the gas to heat their homes, and fall off as the seasons change.

That’s what makes this current rally so interesting – and profitable – for investors who know where to look. Suddenly rising gas prices are about to boost this overlooked stock into one of the best pure-profit plays in the sector…

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Since hitting a low of $2.55 in February, natural gas prices are already up 16%, and they are up 11% in just the last month. In fact, natural gas prices just crossed above their 200-day moving average on Tuesday (May 22), a classic indicator of a breakout.

That’s right in line with the EIA’s “Short-Term Energy Outlook,” which projects natural gas prices will continue their rise, hitting $3.30 by the end of the year. You see, despite a glut of natural gas that’s kept prices down, Barclays is projecting gas inventories will be 17% below their five-year average, giving prices a sneaky boost.

And that means this rally should run into winter, right when natural gas gets its seasonal boost.

But playing natural gas futures contracts isn’t the best way to profit from this stealth rally.

We’ve found one of the best natural gas companies you can own, and it’s flying under the radar right now.

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In fact, it just made the biggest deal in the company’s history…

How to Profit from the Natural Gas Rally

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Robeco Institutional Asset Management B.V. Has $607,000 Position in Park Hotels & Resorts (PK)

Robeco Institutional Asset Management B.V. increased its holdings in Park Hotels & Resorts (NYSE:PK) by 745.0% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 22,425 shares of the financial services provider’s stock after purchasing an additional 19,771 shares during the quarter. Robeco Institutional Asset Management B.V.’s holdings in Park Hotels & Resorts were worth $607,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in PK. Migdal Insurance & Financial Holdings Ltd. raised its holdings in Park Hotels & Resorts by 2,193.3% in the 1st quarter. Migdal Insurance & Financial Holdings Ltd. now owns 3,784 shares of the financial services provider’s stock worth $102,000 after purchasing an additional 3,619 shares during the period. American International Group Inc. increased its stake in Park Hotels & Resorts by 170.0% during the 4th quarter. American International Group Inc. now owns 4,773 shares of the financial services provider’s stock worth $137,000 after buying an additional 3,005 shares in the last quarter. Omnia Family Wealth LLC increased its stake in Park Hotels & Resorts by 172.1% during the 4th quarter. Omnia Family Wealth LLC now owns 5,025 shares of the financial services provider’s stock worth $147,000 after buying an additional 3,178 shares in the last quarter. Driehaus Capital Management LLC purchased a new stake in Park Hotels & Resorts during the 4th quarter worth approximately $202,000. Finally, Comerica Bank purchased a new stake in Park Hotels & Resorts during the 1st quarter worth approximately $203,000.

Get Park Hotels & Resorts alerts:

PK stock opened at $31.38 on Friday. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $6.33 billion, a PE ratio of 11.23, a P/E/G ratio of 2.24 and a beta of 0.21. Park Hotels & Resorts has a 1 year low of $23.91 and a 1 year high of $31.73.

Park Hotels & Resorts (NYSE:PK) last posted its quarterly earnings results on Thursday, May 3rd. The financial services provider reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.63 by $0.08. The business had revenue of $668.00 million during the quarter, compared to analyst estimates of $646.90 million. Park Hotels & Resorts had a return on equity of 6.57% and a net margin of 15.31%. The business’s revenue was down 2.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.64 earnings per share. equities research analysts predict that Park Hotels & Resorts will post 2.8 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Monday, July 16th. Stockholders of record on Friday, June 29th will be given a $0.43 dividend. The ex-dividend date is Thursday, June 28th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 5.48%. Park Hotels & Resorts’s dividend payout ratio (DPR) is presently 61.87%.

Several research firms have commented on PK. JPMorgan Chase & Co. reiterated an “overweight” rating and set a $28.00 price objective (down from $30.00) on shares of Park Hotels & Resorts in a research note on Monday, March 5th. Deutsche Bank boosted their price objective on Park Hotels & Resorts from $29.00 to $30.00 and gave the stock a “hold” rating in a research note on Monday, March 19th. Zacks Investment Research lowered Park Hotels & Resorts from a “hold” rating to a “sell” rating in a research note on Friday, March 23rd. Citigroup began coverage on Park Hotels & Resorts in a research note on Tuesday, February 27th. They set a “neutral” rating and a $27.50 price objective for the company. Finally, ValuEngine lowered Park Hotels & Resorts from a “buy” rating to a “hold” rating in a research note on Wednesday, May 2nd. One analyst has rated the stock with a sell rating, six have given a hold rating and six have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $37.45.

In other news, EVP Matthew Abram Sparks sold 12,877 shares of the company’s stock in a transaction that occurred on Monday, May 7th. The stock was sold at an average price of $29.87, for a total value of $384,635.99. Following the completion of the sale, the executive vice president now directly owns 46,931 shares in the company, valued at $1,401,828.97. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.38% of the stock is owned by corporate insiders.

Park Hotels & Resorts Profile

Park is a leading lodging REIT with a diverse portfolio of hotels and resorts with significant underlying real estate value. Park's portfolio consists of 55 premium-branded hotels and resorts with over 32,000 rooms located in prime United States and international markets with high barriers to entry.

Want to see what other hedge funds are holding PK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Park Hotels & Resorts (NYSE:PK).

Institutional Ownership by Quarter for Park Hotels & Resorts (NYSE:PK)

Top 10 China Stocks To Invest In 2019

Someone asked me the other day why I thought Alibaba (NYSE:BABA) was such a huge winner in the China e-commerce game. I see three reasons.

Trust. For a long time, people in China were wary of e-commerce in China because they were simply afraid of getting ripped off when buying goods sight unseen. We didn’t really face that issue in the US to the same extent, because Sears, Wards, and J.C. Penney had been selling goods to Americans sight-unseen for over a century. Over that time, we had not only discovered which mail-order brands we could trust to “deliver the goods,” we also compelled the creation of terms, conditions, and practices that formed an (often unspoken) contract between retailer and buyer. When it created Taobao, Alibaba put together a series of terms and conditions that allowed both early adopters and the mass market to trust them enough to send their money into the ether. That trust went deep enough that, with Alipay, Chinese now trust Alibaba with their money. Experience. Alibaba understood from the outset that it needed to offer a an efficient and enjoyble buying experience, but that it did not need to go crazy. The company understood that it had a low bar. The Chinese retail experience always was miserable, and has improved only a little over the past two decades. Simply by making the experience a bit better than what you get at a typical Chinese retail store, and spending the rest of their effort on reliability and trust, Alibaba won. Scope. As Jeff Bezos understood, the key to winning in electronic commerce was not to focus on being the best bookstore, or grocery store, or anything store. The key was becoming the go-to place to shop, regardless of what you want to buy. Alibaba used Taobao to build unmatchable scope in a very short period of time. Now the default choices are traditional retail and Taobao, and everyone else has to fight harder for consideration, even as a specialized niche site.

It is difficult to see how anyone might knock that wall down.

Top 10 China Stocks To Invest In 2019: Ionis Pharmaceuticals, Inc.(IONS)

Advisors’ Opinion:

  • [By Brian Orelli]

    Shares of Ionis Pharmaceuticals (NASDAQ:IONS) ended the day down 10.6% after an earnings reportfrom partner Biogen (NASDAQ:BIIB) started the day on a sour note. Then shares dropped even further midday after data was releasedfor IONIS-HTTRx, a treatment for Huntington’s disease. Biogen managed to end the day in the green, up 1.1%.

  • [By Chris Lange]

    Ionis Pharmaceuticals Inc. (NASDAQ: IONS) shares made a handy gain on Friday after the firm announced an expanded strategic collaboration with Biogen Inc. (NASDAQ: BIIB). Through this partnership, these companies are planning to tackle and develop novel antisense drug candidates for a broad range of neurological diseases.

  • [By George Budwell]

    Biogen’s top-line growth has now become almost totally dependent on sales of its fairly new spinal muscular atrophy (SMA) drug, Spinraza, that it co-developed with Ionis Pharmaceuticals (NASDAQ:IONS).

  • [By Brian Orelli]

    Ionis Pharmaceuticals (NASDAQ:IONS) reported first-quarter earnings with revenue up substantially, but expenses rising even faster, as it prepares to launch two drugs this year.

  • [By Lisa Levin] Gainers
    The Trade Desk, Inc. (NASDAQ: TTD) jumped 36.2 percent to $71.82 after the company reported upbeat results for its first quarter. The company also issued strong second-quarter and FY18 sales guidance.
    WideOpenWest, Inc. (NYSE: WOW) jumped 30.4 percent to $8.80 after the company reported Q1 results.
    MoSys, Inc. (NASDAQ: MOSY) shares surged 28.6 percent to $1.9541 after the company reported better-than-expected Q1 results and issued strong Q2 forecast.
    Boxlight Corporation (NASDAQ: BOXL) gained 24 percent to $6.39.
    Akcea Therapeutics, Inc. (NASDAQ: AKCA) shares gained 19.1 percent to $24.60. Akcea Therapeutics, an affiliate of Ionis Pharmaceuticals Inc (NASDAQ: IONS) announced that the Endocrinologic and Metabolic Drugs Advisory Committee, which met to discuss the safety and efficacy of subcutaneously injected volanesoren solution for patients with familial chylomicronemia syndrome, voted 12-8 to support its approval.
    Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) shares rose 17 percent to $10.31 after reporting Q3 results.
    ArcBest Corporation (NASDAQ: ARCB) gained 16.8 percent to $43.1457 after reporting upbeat quarterly earnings.
    Amtech Systems, Inc. (NASDAQ: ASYS) rose 16.2 percent to $8.60. Amtech posted Q2 earnings of $0.19 per share on sales of $32.783 million.
    Identiv, Inc (NASDAQ: INVE) surged 14.4 percent to $3.8450 following Q1 results.
    Omeros Corporation (NASDAQ: OMER) shares rose 14.3 percent to $18.43 following Q1 results.
    VivoPower International PLC (NASDAQ: VVPR) gained 11.5 percent to $2.71.
    Intersections Inc. (NASDAQ: INTX) gained 11.4 percent to $2.55 after reporting Q1 results.
    Noodles & Company (NASDAQ: NDLS) shares rose 10.9 percent to $8.65 following Q1 results.
    Voyager Therapeutics, Inc. (NASDAQ: VYGR) climbed 10.6 percent to $18.54 following Q1 results.
    Blink Charging Co. (NASDAQ: BLNK) rose 10.4 percent to $5.739.
    Immersion Corporation (NASDAQ: IMMR) gained 9.6 percent to $12.69
  • [By Lisa Levin]

    Akcea Therapeutics, Inc. (NASDAQ: AKCA) shares were also up, gaining 17 percent to $24.15. Akcea Therapeutics, an affiliate of Ionis Pharmaceuticals Inc (NASDAQ: IONS) announced that the Endocrinologic and Metabolic Drugs Advisory Committee, which met to discuss the safety and efficacy of subcutaneously injected volanesoren solution for patients with familial chylomicronemia syndrome, voted 12-8 to support its approval.

Top 10 China Stocks To Invest In 2019: RenaissanceRe Holdings Ltd.(RNR)

Advisors’ Opinion:

  • [By Logan Wallace]

    RenaissanceRe (NYSE: RNR) is one of 73 publicly-traded companies in the “Fire, marine, & casualty insurance” industry, but how does it compare to its rivals? We will compare RenaissanceRe to similar companies based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Top 10 China Stocks To Invest In 2019: Shoe Carnival, Inc.(SCVL)

Advisors’ Opinion:

  • [By Lisa Levin]

    Shoe Carnival, Inc. (NASDAQ: SCVL) shares shot up 19 percent to $31.45 after the company reported upbeat quarterly earnings

    Shares of Acorn International, Inc. (NYSE: ATV) got a boost, shooting up 15 percent to $28.6813 after the company declared a special one-time cash dividend of $14.97 per ADS.

  • [By Max Byerly]

    Genesco (NYSE: GCO) and Shoe Carnival (NASDAQ:SCVL) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

  • [By Lisa Levin] Gainers
    Melinta Therapeutics, Inc. (NASDAQ: MLNT) shares surged 20.6 percent to $6.39. WBB Securities upgraded Melinta Therapeutics from Hold to Speculative Buy.
    Shoe Carnival, Inc. (NASDAQ: SCVL) shares climbed 17.2 percent to $30.87 after the company reported upbeat quarterly earnings.
    Acorn International, Inc. (NYSE: ATV) shares rose 15.2 percent to $28.804 after the company declared a special one-time cash dividend of $14.97 per ADS.
    Foot Locker, Inc. (NYSE: FL) gained 15 percent to $53.35 after the company reported better-than-expected results for its first quarter.
    Sears Hometown and Outlet Stores, Inc. (NASDAQ: SHOS) surged 14.2 percent to $2.625.
    ArQule, Inc. (NASDAQ: ARQL) rose 13 percent to $5.12 after gaining 4.86 percent on Thursday.
    Quality Systems, Inc. (NASDAQ: QSII) gained 12.8 percent to $16.97 after the company posted better-than-expected FQ4 results.
    Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE: LOMA) shares rose 12 percent to $12.94.
    ArQule, Inc. (NASDAQ: ARQL) shares rose 12 percent to $5.07.
    Mirati Therapeutics, Inc. (NASDAQ: MRTX) climbed 11.4 percent to $43.50.
    Zai Lab Limited (NASDAQ: ZLAB) gained 11.3 percent to $24.7000.
    Zymeworks Inc. (NASDAQ: ZYME) rose 9.7 percent to $19.64.
    Park City Group, Inc. (NASDAQ: PCYG) climbed 9 percent to $7.90.
    Roku, Inc. (NASDAQ: ROKU) gained 7.9 percent to $38.82 after Citron reversed previously bearish position on the stock.
    Sears Holdings Corporation (NASDAQ: SHLD) shares jumped 7.3 percent to $3.55.
    Deckers Outdoor Corp (NYSE: DECK) rose 3.5 percent to $107.27 after reporting better-than-expected results for its fiscal fourth quarter.

    Check out these big penny stock gainers and losers

  • [By Lisa Levin]

    Shoe Carnival, Inc. (NASDAQ: SCVL) shares shot up 17 percent to $30.91 after the company reported upbeat quarterly earnings

    Shares of Quality Systems, Inc. (NASDAQ: QSII) got a boost, shooting up 14 percent to $17.08 after the company posted better-than-expected FQ4 results.

Top 10 China Stocks To Invest In 2019: Hingham Institution for Savings(HIFS)

Advisors’ Opinion:

  • [By Max Byerly]

    Port Capital LLC lifted its stake in Hingham Institution for Savings (NASDAQ:HIFS) by 14.1% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 48,159 shares of the savings and loans company’s stock after purchasing an additional 5,943 shares during the quarter. Hingham Institution for Savings accounts for approximately 1.4% of Port Capital LLC’s holdings, making the stock its 25th biggest position. Port Capital LLC owned approximately 2.28% of Hingham Institution for Savings worth $9,921,000 at the end of the most recent reporting period.

Top 10 China Stocks To Invest In 2019: U.S. Bancorp(USB)

Advisors’ Opinion:

  • [By Garrett Baldwin]

    Morgan Stanley (NYSE: MS) leads a busy day of earnings reports. The company reported earnings per share (EPS) of $1.37 on top of $11.08 billion in revenue. Analysts projected EPS of $1.28 on top of $10.45 billion in revenue. Shares of MS stock popped 2.4% thanks to stronger profits (a 26% jump) from the company’s trading division. Recent market volatility has benefited the trading operations of Wall Street investment banks. Here’s how you can tap into volatility for big profits this week. Once again, markets are keeping a close eye on ongoing issues between the United States and its largest trading partners. According to reports, trade problems are expected to offset any gains projected from recent tax reform. The news comes as China is looking to get other U.S. trade partners to stand on their side and oppose American protectionism. Meanwhile, NAFTA officials are set to meet in Washington in order to accelerate the renegotiation of the three-nation trade agreement. This news comes the same morning that U.S. President Donald Trump took to Twitter to bash the Trans-Pacific Partnership. “While Japan and South Korea would like us to go back into TPP, I don’t like the deal for the United States,” he tweeted. Trump recently raised the possibility that the United States could join the 11-nation deal. Farming groups have been pushing Trump to rejoin the treaty due to the competitive disadvantage they will face against farmers in Canada, Mexico, and Australia, three member states of the deal.
    Three Stocks to Watch Today: MS, AXP, AXP
    International Business Machines Corp.(NYSE:IBM) shares plunged more than 5.4% in pre-market hours after the company reported weaker-than-expected forward guidance after the bell on Tuesday. The company reported EPS of $2.45, a figure that beat analysts’ expectations by $0.03. Its $19.1 billion in revenue also topped Wall Street expectations. However, the firm fell short on its annual profit outlook. People are lining up again to gi

  • [By Jon C. Ogg]

    U.S. Bancorp (NYSE: USB) should be positioned to do well compared with the rest of the major banks in 2018 and beyond. The problem is that you would never know it if you only looked at its stock price. This is the largest regional bank in America, as well as the seventh largest bank in America by assets. Is it possible that all the good things and solid returns are more than fully reflected in the share price?

  • [By ]

    Buffett’s investment in banking is even more interesting that the overall over-weighting appears. Berkshire cut its position in Wells Fargo & Company (NYSE: WFC) to come in under 10% ownership last quarter but still holds $24.7 billion in shares, it’s second-largest holding. At the industry-level, Berkshire added to its banking position with 3.7 million shares of US Bancorp (NYSE: USB) and 1.4 million shares of Bank of New York Mellon (NYSE: BK).

Top 10 China Stocks To Invest In 2019: RealPage, Inc.(RP)

Advisors’ Opinion:

  • [By Stephan Byrd]

    RealPage (NASDAQ:RP) had its target price increased by KeyCorp from $61.00 to $65.00 in a research note published on Friday morning. The firm currently has an overweight rating on the software maker’s stock.

Top 10 China Stocks To Invest In 2019: Minerals Technologies Inc.(MTX)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on Minerals Technologies (MTX)

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

  • [By Ethan Ryder]

    Minerals Technologies (NYSE:MTX) posted its earnings results on Thursday. The basic materials company reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.12 by $0.01, Bloomberg Earnings reports. Minerals Technologies had a return on equity of 13.89% and a net margin of 11.64%. The company had revenue of $431.30 million for the quarter, compared to the consensus estimate of $420.00 million. During the same quarter in the prior year, the company earned $0.97 earnings per share. Minerals Technologies’s revenue was up 6.5% on a year-over-year basis.

  • [By Ethan Ryder]

    Minerals Technologies (NYSE: MTX) and Air Products & Chemicals (NYSE:APD) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

  • [By Logan Wallace]

    Minerals Technologies (NYSE: MTX) and Lsb Industries (NYSE:LXU) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Top 10 China Stocks To Invest In 2019: TransUnion(TRU)

Advisors’ Opinion:

  • [By Shane Hupp]

    Eagle Asset Management Inc. increased its position in shares of TransUnion (NYSE:TRU) by 11.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,432,827 shares of the business services provider’s stock after acquiring an additional 144,711 shares during the period. Eagle Asset Management Inc. owned about 0.78% of TransUnion worth $81,355,000 as of its most recent filing with the Securities and Exchange Commission.

  • [By Lisa Levin] Gainers
    AGM Group Holdings Inc. (NASDAQ: AGMH) shares climbed 30.3 percent to $11.05 after climbing 34.60 percent on Thursday.
    Limelight Networks, Inc. (NASDAQ: LLNW) jumped 21.2 percent to $4.9699 following a first-quarter earnings beat. The company also raised its fiscal 2018 estimates.
    Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) shares climbed 18.8 percent to $7.89 after reporting strong Q1 earnings.
    Farmers Capital Bank Corp (NASDAQ: FFKT) gained 15.4 percent to $48.75. WesBanco Inc (NASDAQ: WSBC) announced an agreement and plan of merger with Farmers Capital Bank Corporation.
    TransUnion (NYSE: TRU) climbed 10.2 percent to $66.76 after the company posted upbeat Q1 results and issued a strong forecast for the second quarter. TransUnion announced plans to acquire Callcredit.
    Myomo, Inc. (NYSE: MYO) shares gained 9.2 percent to $3.9299 after rising 8.11 percent on Thursday.
    Pinnacle Foods Inc (NYSE: PF) gained 8.8 percent to $60.04 after a 13-D filing from Jana Partners showed an increased stake in the comapny, from 1.42 million shares at the end of last quarter to 10.83 million shares, or a 9.3-percent stake.
    Associated Banc-Corp (NYSE: ASB) shares climbed 8.8 percent to $26.70 following upbeat Q1 earnings.
    OFG Bancorp (NYSE: OFG) gained 8.5 percent to $12.80 after reporting Q1 results.
    Cleveland-Cliffs Inc. (NYSE: CLF) climbed 7.5 percent to $7.73 following Q1 results.
    Seaspan Corporation (NYSE: SSW) shares climbed 6.7 percent to $7.50. Deutsche Bank upgraded Seaspan from Hold to Buy.
    General Electric Company (NYSE: GE) shares rose 4.6 percent to $14.63 after the company reported better-than-expected earnings for its first quarter.
    Ionis Pharmaceuticals, Inc. (NASDAQ: IONS) rose 4.3 percent to $47.80. Biogen and Ionis have expanded their strategic collaboration to develop drug candidates for a broad range of neurological diseases.

    Check out these big penny stock gainers and losers

Top 10 China Stocks To Invest In 2019: Berkshire Hathaway Inc.(BRK.A)

Advisors’ Opinion:

  • [By Keith Fitz-Gerald]

    Which brings me to the current war of words between Tesla Inc.’s (Nasdaq: TSLA) CEO, Elon Musk, and Berkshire Hathaway Inc.’s (NYSE: BRK.A) legendary leader, Warren Buffett.

  • [By Money Morning News Team]

    Drug pricing controversies, increased generic competition for blockbuster drugs, and the recent merger between retail giant CVS Health Corp. (NYSE: CVS) and insurance company Aetna Inc. (NYSE: AET) have weakened returns for shareholders.
    In addition, Amazon.com Inc. (Nasdaq: AMZN), Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK.A), and JPMorgan Chase & Co. (NYSE: JPM) announced a joint venture to enter the health insurance industry.

  • [By Money Morning Staff Reports]

    Bitcoin prices held above $9,000 this morning, as crypto enthusiasts have largely shrugged off statements by Berkshire Hathaway Inc. (NYSE: BRK.A) CEO Warren Buffett.

  • [By ]

    In his “No-Huddle Offense” segment, Cramer celebrated the annual Berkshire Hathaway (BRK.A)    (BRK.B) shareholder weekend by taking a quick peek at Warren Buffett’s five largest holdings.

  • [By ]

    There aren’t a lot of tech companies that one can imagine Warren Buffett and the rest of Berkshire Hathaway’s (BRK.A) investment team taking a close look at, given their investment philosophy. But exceptions do exist.

  • [By ]

    Billionaire investor and CEO of Berkshire Hathaway (BRK.A)  , Warren Buffett, has never been a fan of cryptocurrency, but his latest assault on the digital asset is arguably his toughest yet. In an interview on CNBC Monday, Buffett said bitcoin is “probably rat poison squared.” Buffett had previously argued that bitcoin is a gamble more than it is an investment and that the cryptocurrency would almost surely come to a “bad ending.” On Monday, Buffett said, “[Bitcoin] itself is creating nothing. When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along.” Buffett’s comments, which were made after Berkshire’s annual shareholder meeting on Saturday, followed a similar sentiment from his second-in-command, Charlie Munger, who said crypto trading is “just dementia.”

Top 10 China Stocks To Invest In 2019: Standex International Corporation(SXI)

Advisors’ Opinion:

  • [By Stephan Byrd]

    Synex International (TSE:SXI) Director Glenn Stanley Mcdonnell sold 250,000 shares of the stock in a transaction on Wednesday, May 2nd. The stock was sold at an average price of C$0.50, for a total transaction of C$125,000.00.

Buy Bharat Forge; target of Rs 806: Motilal Oswal

Motilal Oswal’s research report on Bharat Forge

Revenues increased 30% YoY to INR14.7b (est INR14.3b) led by tonnage growth of 24.5% YoY to 67.7kMT (est. of 67.2kMT) and realizations growth of 4.7% YoY (flat QoQ) to INR213.5k/ton (in-line). EBITDA margin contracted 150bp QoQ (flat YoY) to 28.5% (est 30.2%), impacted by higher RM cost and forex loss on Fx loan.

Outlook

We have downgraded our FY19E/20E EPS by 4-7% to factor for adverse mix (PVs) and higher RM cost. BHFC trades at 26.8x/21.1x FY19E/20E EPS. Maintain Buy with a TP of INR806 (25x Mar20E consol. EPS).

For all recommendations report,click here

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