Tag: Buy

Capital One to buy Discover for $35 billion in deal that combines major US credit card companies

NEW YORK — Capital One Financial said it will buy Discover Financial Services for $35 billion, in a deal that would bring together two of the nation’s credit card companies as well as potentially shake up the payments industry, which is largely dominated by Visa and Mastercard.

Under the terms of the all-stock transaction, Discover Financial shareholders will receive Capital One shares valued at nearly $140. That’s a significant premium to the $110.49 that Discover shares closed at Friday.

The deal marries two of the largest credit card companies that aren’t banks first, like JPMorgan Chase and Citigroup, with the notable exception of American Express. It also brings together two companies whose customers are largely similar: often Americans who are looking for cash back or modest travel rewards, compared to the premium credit cards dominated by AmEx, Citi and Chase.

“This marketplace that’s dominated by the big players is going to shrink a little bit more now,” said Matt Schulz, chief credit card analyst at LendingTree.

It also will give Discover’s payment network a major credit card partner in a way that could make the payment network a major competitor once again. The U.S. credit card industry is dominated by the Visa-Mastercard duopoly with AmEx being a distance third place and Discover an even more distant fourth place. It’s unclear whether Capitol One will adopt the Discover payment system or may set up a payment network that allows parallel use of Discover and a second payment network like Visa.

“Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies,” said Richard Fairbank, the chairman and CEO of Capital One, in a statement.

With

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Best Buy to End DVD, Blu-ray Disc Sales in Early 2024

UPDATED: Best Buy is checking out of the DVD business.

The consumer-electronics retailer will phase out sales of DVDs and Blu-ray discs both in-store and online in early 2024, according to industry sources familiar with the company’s plans. Best Buy made the initial decision to end DVD sales nine months ago, according to one source.

Best Buy confirmed Friday that it is ending sales of DVDs. “To state the obvious, the way we watch movies and TV shows is much different today than it was decades ago,” a Best Buy spokesperson said in a statement to Variety. “Making this change gives us more space and opportunity to bring customers new and innovative tech for them to explore, discover and enjoy.”

Best Buy will continue to sell movies and TV shows on physical discs through the 2023 holiday shopping season online and in stores, before discontinuing sales in the new year. The company will continue to sell video games. As of mid-2023, Best Buy had 1,129 store locations, with 969 of those in the U.S.

News of Best Buy’s ending DVD sales was first reported by home-entertainment blog The Digital Bits.

The move comes as Netflix, 25 years after launching its pioneering DVD-by-mail service, shipped out its last DVDs to customers on Sept. 29 (and let them keep their final discs if they chose to).

Best Buy’s exit from the market will leave Walmart, Amazon and Target as the top retailers in the U.S. stocking DVDs and Blu-ray discs. Also still in the physical-disc game is Redbox, now owned by Chicken Soup for the Soul Entertainment, which maintains a network of about 29,000 DVD rental kiosks nationwide.

Amid the ascent of streaming video, sales of DVDs and Blu-Ray discs have been shrinking for years. U.S. physical media revenue in

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Top 11 Stocks to Buy From all 11 Sectors | Investing

In investing, a sector is a broad business category that a given company belongs to. Grouping companies, especially companies that offer stock to the public, by sector is a helpful way of sorting them into convenient groups.

There is no law or regulation that dictates the official names and criteria of sectors, but the financial industry has adopted and generally adheres to a specific set of sector groupings called the Global Industry Classification Standard, or GICS. The GICS was developed in 1999 in a joint effort between Standard & Poor’s Global and Morgan Stanley. It has been a reliable industry standard ever since.

Under the GICS there are 11 sectors. They are as follows:

Knowing a company’s sector is very useful when selecting stocks to buy and hold in an investment portfolio. Because different sectors can perform differently according to their own specific market and economic conditions, diversifying holdings among sectors can reduce the overall risk of a portfolio. In this way, sector diversification is an effective risk reduction strategy.

Unfortunately, with thousands of stocks grouped into 11 sectors, picking the right ones to buy can seem like a daunting task. Here’s a look at one top stock from each of the 11 different sectors:

SHW

Sector: Materials
Industry: Specialty chemicals

With manufacturing, distribution and retail outlets in 120 countries, SHW is a world leader in the development, production and distribution of paints, stains and coatings for retail and commercial customers.

SHW is a large-cap

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Should Value Investors Buy First Business Financial Services (FBIZ) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is First Business Financial Services (FBIZ). FBIZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.25, while its industry has an average P/E of 10.92. Over the past year, FBIZ’s Forward P/E has been as high as 9.25 and as low as 5.93, with a median of 7.24.

We should also highlight that FBIZ has a P/B ratio of 1.24. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks solid versus its industry’s average P/B of 1.93. Within the past 52 weeks, FBIZ’s P/B has been as high as 1.28 and as low as 0.82, with a median of 1.02.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock’s price with the company’s revenue.

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9 Best Small-Cap Stocks to Buy in 2024 | Investing

As the old saying goes, past performance doesn’t guarantee future returns. But it’s not uncommon for stocks that are struggling to keep circling the drain and for recent outperformers to continue to ride their momentum even higher going forward.

The following companies are among the best small-cap stocks to buy in 2024, thanks to impressive returns in the prior year and strong outlooks for the future. All have delivered gains of more than 100% since Jan. 1. At the same time, all are still modest in size, with no stock over $10 billion and a few smaller than $1 billion.

There’s risk in smaller stocks, as they are not as well capitalized as big-name blue chips. There’s also a chance that prior gains and enthusiasm will fade away in the new year if things go sideways for the broader economy, or for these stocks in particular.

That said, the following nine companies all clearly have something to offer, and each is worth considering if you’re looking for the top small-cap stocks to buy in 2024:

Stock Sector Market Cap* YTD Gain*
Applied Optoelectronics Inc. (ticker: AAOI) Technology $692 million 882%
Bitfarms Ltd. (BITF) Finance $731 million 415.9%
Carvana Co. (CVNA) Consumer discretionary $6.8 billion 740.3%
Carrols Restaurant Group Inc. (TAST) Consumer discretionary $435 billion 491.9%
Duolingo Inc. (DUOL) Technology $9.3 billion 203.9%
e.l.f. Beauty Inc. (ELF) Consumer staples $7.1 billion 132.6%
Forestar Group Inc. (FOR) Real estate $1.6 billion 103.2%
Simpson Manufacturing Co. Inc. (SSD) Materials $7.7 billion 106.9%
Talkspace Inc. (TALK) Health care $391 million 290.2%

Applied Optoelectronics Inc. (AAOI)

Sector: Technology
Market cap: $692 million
2023 performance: +882%

Manufacturer Applied Optoelectronics produces fiber optic equipment, lasers and other high-tech gear. It’s a small, niche player, but like many of the best small-cap stocks to buy now, its unique

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7 Best Marijuana Stocks to Buy Now | Investing

Earlier this year, the U.S. Department of Health and Human Services said it recommends reclassifying marijuana from a Schedule 1 drug to Schedule 3, a development greeted with enthusiasm by the legal marijuana industry.

If the rescheduling happens, then the industry would be able to come out from under the shadow of Internal Revenue Service Code Section 280E, which prohibits marijuana companies from taking certain tax deductions and credits that federally legal businesses enjoy.

That would remove a huge impediment to profitability, and in September marijuana stocks rallied to the year’s high point on the news.

Now, they have resumed a years-long slump, with the New Cannabis Ventures Global Cannabis Stock Index hitting a record low this week.

The sell-off may be rooted in worries that upcoming earnings reports might not be as strong as hoped, fears about a new House speaker who has historically opposed bills that supported the cannabis industry, and general market malaise, New Cannabis Ventures said in a note to investors.

“While 280E might get wiped out, which would be a huge benefit for cannabis companies, the sector remains under pressure,” according to New Cannabis Ventures.

In addition to tax issues, oversupply and competition within the legal market have depressed prices, and the cheaper illegal market lures customers who would otherwise spend on legal products.

Meanwhile, in the U.S., marijuana companies have found it harder to secure loans after the regional banking crisis earlier this year, which brought a chill to an already difficult financing market. Banking laws are set federally, and most lenders don’t want to deal with the onerous paperwork that comes with lending to marijuana companies.

These factors have led to a broad pullback in cannabis shares, creating bargain opportunities for those who are willing to hold shares for a long time.

“With

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6 Best Small-Cap Stocks to Buy in 2023 | Investing

An underappreciated edge individual investors possess? The agility to delve into small-cap stocks without influencing market dynamics – an impossible feat for the largest and brightest funds on Wall Street.

Traditional financial wisdom, however, champions mega-caps as the path to stock market returns.

A deeper dive reveals that small caps can match their mega-cap counterparts when it comes to stability. The small-cap universe has stocks of all criteria: growth, dividend, value, turnarounds – you name it.

Historically, small-cap stocks tend to outperform large-cap stocks. Scholars have labeled this phenomenon the “size-effect,” tracing its origins to more modest attention from the press, Wall Street analysts and large investment funds. This dynamic often results in a delayed or dulled market response to news or operational improvements for small-cap stocks, sometimes allowing individual investors to perform information arbitrage.

While the world of small-caps offers additional risk, the right investor can also achieve superior returns. For those keen to exploit the small-cap anomaly, these six stocks are worthy of your consideration. Whether you’re tapping into the hot artificial intelligence industry or looking to play a turnaround, this curated list caters to a diverse range of investment appetites:

Stock Sector Market cap YTD Gain (as of Sept. 7 close)
WW International Inc. (ticker: WW) Consumer cyclical $840 million 190.9%
Shutterstock Inc. (SSTK) Communication services $1.4 billion -22.5%
Intapp Inc. (INTA) Technology $2.4 billion 42.7%
International Seaways Inc. (INSW) Energy $2.1 billion 21.7%
Xponential Fitness Inc. (XPOF) Consumer cyclical $950 million -16.1%
Winnebago Industries Inc. (WGO) Consumer cyclical $1.9 billion 19.3%

WW International Inc. (WW)

Sector: Consumer cyclical
Market value: $840 million
YTD return: 190.9%

WW International, better known as WeightWatchers, is a poster story for digital disruption. With competitors releasing free apps like MyFitnessPal and easily accessible internet weight loss information, the company’s core business

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We caught technicians at Best Buy, Mobile Klinik, Canada Computers and others snooping on our personal devices

When you need to drop off your tech devices for a repair, how confident are you that they won’t be snooped on?

CBC’s Marketplace took smartphones and laptops to repair stores across Ontario — including large chains Best Buy and Mobile Klinik — and found that in more than half of the documented cases, technicians accessed intimate photos and private information not relevant to the repair.

Marketplace dropped off devices at 20 stores, ranging from small independent shops to medium-sized chains to larger national chains, after installing monitoring software on the devices. In total, 16 stores were recorded. (At four stores, the tracking software didn’t log anything, or the stores didn’t appear to turn the devices on.)

Technicians at nine stores accessed private data, including one technician who not only viewed photos but copied them onto a USB key.

WATCH | Testing tech repair: Who’s spying on your stuff?

Testing tech repair: who’s spying on you?

Featured VideoWe load up smartphones and laptops with private information to find out if technicians will snoop on our devices. We reveal who looks at our stuff and what you can do to protect your privacy.

“These results are frightening,” said Hassan Khan, associate professor in the school of computer science at the University of Guelph. “It’s looking through information, searching for data on users’ devices, copying data off the device…. it’s as bad as it gets.”

To examine the extent of privacy breaches by technicians at repair stores, Marketplace teamed up with Khan, who had previously done a privacy study on laptop repairs in a number of Ontario stores, which found that many technicians snooped on personal data.

For the Marketplace investigation, Khan, along with graduate students Angela Tran and Brandon Lit, loaded four smartphones and six laptops with the kind of

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Best Buy Canada a drag on parent company’s sales – Business News

Best Buy Co Inc.’s (NYSE:BBY) Canadian stores are seeing steeper drops in sales than are the company’s stores in the U.S. – at least when those sales are converted into U.S. dollars.

The Minnesota-based venture, which bases what it calls its “international” division in Vancouver, reported its earnings this morning. Best Buy operated in Mexico for 13 years up until 2021, when it exited that country. It now only operates stores in Canada and the U.S.

The company reported that its “international segment” generated US$693 million in sales in the quarter that ended July 30. That was down 8.8 per cent from the US$760 million that it generated in the same quarter last year.

“This decrease was primarily driven by a comparable sales decline of 5.4 per cent and the negative impact of approximately 340 basis points from foreign currency exchange rates,” the company explained in a news release.

“International operating income was $19 million, or 2.7 per cent of revenue, compared to $28 million, or 3.7 per cent of revenue, last year.”

The reason why Best Buy’s international operating income declined was because the company spent more on general administrative expenses even as it enjoyed higher margins, the company said.

The company’s U.S. business also struggled. It generated US$8.89 billion in sales in the quarter ended July 30, down 7.1 per cent from US$9.569 billion in the same quarter in 2022.

The only time Best Buy CEO Corie Sue Barry mentioned Canada on her company’s conference call with analysts this morning was to express support for those displaced by forest fires.

“I want to make sure we acknowledge the wildfires in Maui, but also the wildfires we’ve seen in

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Best Buy Canada a drag on parent company’s sales – Business News

Best Buy Co Inc.’s (NYSE:BBY) Canadian stores are seeing steeper drops in sales than are the company’s stores in the U.S. – at least when those sales are converted into U.S. dollars.

The Minnesota-based venture, which bases what it calls its “international” division in Vancouver, reported its earnings this morning. Best Buy operated in Mexico for 13 years up until 2021, when it exited that country. It now only operates stores in Canada and the U.S.

The company reported that its “international segment” generated US$693 million in sales in the quarter that ended July 30. That was down 8.8 per cent from the US$760 million that it generated in the same quarter last year.

“This decrease was primarily driven by a comparable sales decline of 5.4 per cent and the negative impact of approximately 340 basis points from foreign currency exchange rates,” the company explained in a news release.

“International operating income was $19 million, or 2.7 per cent of revenue, compared to $28 million, or 3.7 per cent of revenue, last year.”

The reason why Best Buy’s international operating income declined was because the company spent more on general administrative expenses even as it enjoyed higher margins, the company said.

The company’s U.S. business also struggled. It generated US$8.89 billion in sales in the quarter ended July 30, down 7.1 per cent from US$9.569 billion in the same quarter in 2022.

The only time Best Buy CEO Corie Sue Barry mentioned Canada on her company’s conference call with analysts this morning was to express support for those displaced by forest fires.

“I want to make sure we acknowledge the wildfires in Maui, but also the wildfires we’ve seen in

Read More ...