Latest news with #TrivariateResearch
Yahoo
3 days ago
- Business
- Yahoo
Adam Parker of Trivariate Research Recommends Eli Lilly's Dividend as a Defensive Play
Eli Lilly and Company (NYSE:LLY) is one of Best Dividend Stocks to Buy for Dependable Dividend Growth. According to Adam Parker, founder of Trivariate Research, investors aiming for a defensive approach might want to look at select dividend-paying stocks. In a note dated June 8, Parker mentioned that while many institutional investors still expect the S&P to climb higher, there's also growing interest in identifying solid defensive options. An array of pharmaceutical pills with the company's logo on the bottle. He noted that the 'old school' strategy of leaning on traditional defensive sectors like consumer staples, pharmaceuticals, and telecoms appears to be 'broken.' In response, Trivariate has outlined alternative strategies for defensive positioning, one of which includes focusing on dividend-paying equities. Parker made the following comment: 'We think companies with consistent dividend growth are likely to provide strong defense if there's a growth scare. Specifically, our past work shows that companies that have grown their dividend over the last five years and that are indicated to have continued dividend growth, as well as at least 7% forecasted sales growth and 10% forecasted earnings growth outperform.' Eli Lilly and Company (NYSE:LLY) was the only pharmaceutical company to make the list. The firm offers a dividend yield of 0.76% and has seen its stock has surged by nearly 2% year-to-date. In May, the company posted better-than-expected earnings and revenue for the first quarter but trimmed its full-year profit outlook due to costs tied to a cancer drug deal. However, it kept its full-year sales forecast unchanged. Following the earnings release, CEO Dave Ricks told CNBC that the potential market for its widely used weight-loss and diabetes medications is 'massive.' Eli Lilly and Company (NYSE:LLY)'s diabetes drug is Mounjaro, while Zepbound is its treatment for obesity. Ricks made the following statement in an interview with ' Squawk Box ' on May 1: 'Today we probably have about 10 million Americans taking GLP-1s. The market opportunity is much, much larger than that. We see this as a big wave of innovation for many years to come and Lilly is at the forefront of that.' According to FactSet, Eli Lilly and Company (NYSE:LLY) holds an average rating of 'Overweight,' with analysts projecting nearly 21% upside based on the stock's average price target. While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Adam Parker of Trivariate Research Recommends Eli Lilly's Dividend as a Defensive Play
Eli Lilly and Company (NYSE:LLY) is one of Best Dividend Stocks to Buy for Dependable Dividend Growth. According to Adam Parker, founder of Trivariate Research, investors aiming for a defensive approach might want to look at select dividend-paying stocks. In a note dated June 8, Parker mentioned that while many institutional investors still expect the S&P to climb higher, there's also growing interest in identifying solid defensive options. An array of pharmaceutical pills with the company's logo on the bottle. He noted that the 'old school' strategy of leaning on traditional defensive sectors like consumer staples, pharmaceuticals, and telecoms appears to be 'broken.' In response, Trivariate has outlined alternative strategies for defensive positioning, one of which includes focusing on dividend-paying equities. Parker made the following comment: 'We think companies with consistent dividend growth are likely to provide strong defense if there's a growth scare. Specifically, our past work shows that companies that have grown their dividend over the last five years and that are indicated to have continued dividend growth, as well as at least 7% forecasted sales growth and 10% forecasted earnings growth outperform.' Eli Lilly and Company (NYSE:LLY) was the only pharmaceutical company to make the list. The firm offers a dividend yield of 0.76% and has seen its stock has surged by nearly 2% year-to-date. In May, the company posted better-than-expected earnings and revenue for the first quarter but trimmed its full-year profit outlook due to costs tied to a cancer drug deal. However, it kept its full-year sales forecast unchanged. Following the earnings release, CEO Dave Ricks told CNBC that the potential market for its widely used weight-loss and diabetes medications is 'massive.' Eli Lilly and Company (NYSE:LLY)'s diabetes drug is Mounjaro, while Zepbound is its treatment for obesity. Ricks made the following statement in an interview with ' Squawk Box ' on May 1: 'Today we probably have about 10 million Americans taking GLP-1s. The market opportunity is much, much larger than that. We see this as a big wave of innovation for many years to come and Lilly is at the forefront of that.' According to FactSet, Eli Lilly and Company (NYSE:LLY) holds an average rating of 'Overweight,' with analysts projecting nearly 21% upside based on the stock's average price target. While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
CNBC
6 days ago
- Business
- CNBC
Play defense with these dividend-paying stocks, says Trivariate Research's Adam Parker
Investors looking to play defense may want to consider buying certain dividend stocks, according to Trivariate Research founder Adam Parker. Markets have been rocked by volatility this year. On Monday, the Dow Jones Industrial Average , S & P 500 and Nasdaq Composite all moved higher , after selling off on Friday amid concerns over Israel's airstrikes on Iran. While recent interactions with institutional investors signal that many think the S & P will continue to move higher, Parker and his team are also regularly asked about attractive defensive stocks, he said in a June 8 note. With the "old school" traditional playbook of defensive stocks like consumer staples, pharmaceuticals and telecoms is "broken," Trivariate Research has identified several ways investors can get defensive — including dividend-paying equities. "We think companies with consistent dividend growth are likely to provide strong defense if there's a growth scare," Parker wrote. "Specifically, our past work shows that companies that have grown their dividend over the last five years and that are indicated to have continued dividend growth, as well as at least 7% forecasted sales growth and 10% forecasted earnings growth outperform." Here are some of the names that Parker and his team say fit the bill. The screen does not include valuation since stocks that experience multiple contraction before corrections perform the worst during the corrections, he said. Microsoft , which once again became the world's largest company by market cap earlier this month, has a dividend yield of 0.70%. The tech giant managed to hit a record close of $467.68 on June 5 — on a day when tech stocks broadly dropped. Shares have climbed even higher since that time, closing at $478.87 on Thursday and hitting a 52-week high of $480.69 on Monday. MSFT YTD mountain Microsoft year to date Microsoft has an average analyst rating of buy and nearly 8% upside to the average price target, according to FactSet. The stock is up about 14% year to date. Eli Lilly is the only pharmaceutical name that made the cut. The company pays a 0.73% dividend yield and has gained 5% so far this year. In May, Eli Lilly reported an earnings and revenue beat for its first quarter, but it lowered its full-year profit guidance because of charges related to a cancer treatment deal. The company maintained its full-year sales guidance. CEO Dave Ricks told CNBC after the company's earnings report that the use case for its popular weight-loss and diabetes drugs is "massive." Mounjaro is Eli Lilly's diabetes treatment and Zepbound is its obesity drug. "Today we probably have about 10 million Americans taking GLP-1s. The market opportunity is much, much larger than that," Ricks said in an interview with " Squawk Box " on May 1. "We see this as a big wave of innovation for many years to come and Lilly is at the forefront of that." Eli Lilly has an average rating of overweight and nearly 21% upside to the average price target, per FactSet. Investors looking for a higher payout can turn to Philip Morris International , which yields 2.93%. The popularity of the tobacco giant's smoke-free products , notably its Zyn oral nicotine pouch, have helped push shares more than 50% higher this year. The company plans to ultimately replace cigarettes with smoke-free alternatives. The stock has an average analyst rating of overweight and 1.3% upside to the average price target, per FactSet. Meanwhile, utility companies are known for their dividends but NextEra Energy is the only name in the industry that made the list. The stock has a 3.03% yield and has gained about 3% year to date. NextEra shares have an average rating of overweight and 11% upside to the average price target. Lastly, Eaton is expected to benefit from the artificial-intelligence data center boom, as well as reshoring — when companies return operations to the United States. Yet providing power management solutions for data centers and manufacturing facilities is one segment of its business. It also has a hand in the aerospace industry, providing fuel, hydraulics, and pneumatic systems for commercial and military use. It is the latter business segment that is expected to benefit from the deal Eaton struck on Monday to acquire defense group Ultra PCS Limited from the Cobham Ultra Group for $1.55 billion. Ultra PCS produces products and aftermarket services for the aerospace market. Eaton has a 1.29% dividend yield and is up 2% year to date. The stock has an average rating of overweight and nearly 4% upside to the average price target, according to FactSet.
Globe and Mail
02-06-2025
- Business
- Globe and Mail
Dear Palantir Stock Fans, Mark Your Calendars for June 30
Palantir Shares (PLTR) have rallied more than 50% over the last three months and touched a new all-time high of $134.48 today, June 2. However, as the firm enters the large-cap universe, new turbulence is likely to ensue. Trivariate Research has marked Palantir as an 'extreme outlier' in value, one of the most pricey stocks the firm has covered in 25 years. With S&P Global index rebalancing planned for June 30, institutional investors can now take advantage of the window to cut their exposure, which can lead to rotational flows out of the name. This comes against the background of general market instability, with the S&P 500 Index ($SPX) and the Dow Jones Index ($DOWI) falling by 0.6% last Wednesday despite PLTR moving slightly upward. With valuation indicators flashing warning signs and comparative historical indicators calling for restraint, Palantir's premium status can be expected to come under its first major test. Regarding Palantir Stock Palantir Technologies (PLTR) is an enterprise software firm that is focused on AI-driven data integration and decision platforms for government and commercial clients. With a market capitalization close to $311 billion, it is firmly placed in the large-cap space. The company stock has gained a whopping 510% over the last 52 weeks. That is way more than the overall S&P 500 Index, which rose around 12% over the same period. Palantir stock is up by 7.3% in the last five days alone. No matter how good price momentum is, there are still valuation measures indicating overexuberance. Palantir has an astronomical forward price-earnings multiple of 330.6x as well as an over 100x price-sales multiple. That is well above software historical averages and indicates ongoing 40% revenue growth every year for ten consecutive years, something which no peer has ever come close to doing on Palantir's current size, notes Trivariate Research. Palantir Beats on Earnings and Raises Guidance Palantir delivered a strong Q1 2025 earnings report, with revenue of $884 million, up 39% year-over-year and 7% quarter-over-quarter, exceeding expectations. U.S. revenue surged 55% YoY to $628 million, with U.S. commercial revenue expanding 71% YoY to $255 million, surpassing a $1 billion annual run rate. The company posted adjusted EPS of $0.13 versus $0.08 GAAP EPS, supported by a 44% adjusted operating margin and adjusted free cash flow of $370 million, or a 42% margin. GAAP net income rose to $214 million, a 24% margin. Key operational metrics further confirmed momentum. Palantir closed 139 deals over $1 million, including 31 above $10 million. It also booked $810 million in U.S. commercial total contract value, up 183% year-over-year, and reported a U.S. commercial remaining deal value of $2.32 billion, up 127% YoY. Looking ahead, Palantir raised full-year revenue guidance to a range of $3.89 billion to $3.902 billion, representing 36% growth, with adjusted income from operations expected between $1.711 billion and $1.723 billion. The company also boosted its adjusted free cash flow outlook to $1.6 billion to $1.8 billion and guided Q2 revenue to $934 billion and $938 million. Management reiterated expectations for GAAP profitability in every quarter of 2025. What Analysts Foresee for Palantir Stock Sentiment among analysts is still mixed. Palantir has a current 'Hold' consensus, but most companies are hesitant based on price. Palantir has an average price target of $93, which represents downside potential of about 30%. The substantial price target spread indicates increasing concern regarding high multiples, particularly against the background of market rotation or macroeconomic-driven correction.
CNBC
19-05-2025
- Business
- CNBC
Wall Street's rebound puts pressure on earnings to justify high stock prices
The stock market rally that followed the U.S.-China agreement to temporarily reduce tariffs appears to have run out of steam , and investors may now find themselves uneasy with where prices sit. Adam Parker, founder of Trivariate Research, said in a note to clients Sunday that the "upside-downside ratio for the S & P 500 is not particularly attractive" with the outlook for earnings looking particularly shaky. "The 20-year median Q3 year-over-year earnings growth is 4.7%. The growth in 2024 was 7.2% (higher than the long-term average) and yet estimates for 2025Q3 call for 7%. This is an above normal expectation for growth, against a more challenging than average comparison, six months lagged from the first major tariff implementation in nearly a century," Parker said. "Does this holistically make sense? We don't think so," he added. .SPX YTD mountain The S & P 500 has rebounded sharply from its April lows. The S & P 500 currently has a forward price-to-earnings ratio of about 21.6, according to FactSet, which is roughly where the market was trading in late 2024 before President Donald Trump's tariff rollout. "Investors have quickly gone from a glass-half-empty view on stocks to a glass-half-full view, which has significantly closed opportunity gaps that formed in early April," Anthony Saglimbene, Ameriprise chief market strategist, said in a note to clients Monday. To be sure, the U.S. economy has surprised to the upside quite often since the Covid-19 pandemic, and continued growth could help put a floor under the market. Michael Grant, co-CIO at Calamos Investments, told CNBC that he thinks many economists are too pessimistic about the economy and that a recession is unlikely this year. "What the market is interpreting is a broadening of stimulus across the economy, of which this whole tariff plan is just a part," Grant said. — CNBC's Michael Bloom contributed reporting.
