Nucor Co. (NUE) Shares Sold by Harel Insurance Investments & Financial Services Ltd.

Harel Insurance Investments & Financial Services Ltd. reduced its stake in shares of Nucor Co. (NYSE:NUE) by 31.3% in the second quarter, according to its most recent filing with the SEC. The fund owned 2,200 shares of the basic materials company’s stock after selling 1,000 shares during the period. Harel Insurance Investments & Financial Services Ltd.’s holdings in Nucor were worth $138,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently bought and sold shares of NUE. Schwab Charles Investment Management Inc. raised its position in Nucor by 3.1% in the 1st quarter. Schwab Charles Investment Management Inc. now owns 1,268,403 shares of the basic materials company’s stock worth $77,487,000 after purchasing an additional 38,495 shares during the period. Sumitomo Mitsui Trust Holdings Inc. raised its position in Nucor by 1.0% in the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 915,674 shares of the basic materials company’s stock worth $55,939,000 after purchasing an additional 8,677 shares during the period. Alps Advisors Inc. raised its position in Nucor by 9.9% in the 2nd quarter. Alps Advisors Inc. now owns 805,075 shares of the basic materials company’s stock worth $51,187,000 after purchasing an additional 72,509 shares during the period. California Public Employees Retirement System raised its position in Nucor by 10.7% in the 1st quarter. California Public Employees Retirement System now owns 798,442 shares of the basic materials company’s stock worth $48,777,000 after purchasing an additional 77,044 shares during the period. Finally, Stifel Financial Corp raised its position in Nucor by 15.6% in the 1st quarter. Stifel Financial Corp now owns 783,645 shares of the basic materials company’s stock worth $47,875,000 after purchasing an additional 105,716 shares during the period. 77.87% of the stock is owned by institutional investors.

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In other Nucor news, insider Leon J. Topalian sold 3,115 shares of the business’s stock in a transaction dated Thursday, June 21st. The shares were sold at an average price of $64.98, for a total value of $202,412.70. Following the transaction, the insider now owns 43,370 shares in the company, valued at $2,818,182.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider David A. Sumoski sold 51,238 shares of the business’s stock in a transaction dated Monday, July 23rd. The shares were sold at an average price of $66.65, for a total transaction of $3,415,012.70. Following the completion of the transaction, the insider now owns 139,839 shares in the company, valued at approximately $9,320,269.35. The disclosure for this sale can be found here. Insiders sold 122,443 shares of company stock worth $8,277,404 in the last 90 days. Corporate insiders own 0.70% of the company’s stock.

A number of brokerages recently commented on NUE. Jefferies Financial Group reiterated a “buy” rating and issued a $80.00 target price on shares of Nucor in a research report on Friday, July 13th. Zacks Investment Research upgraded shares of Nucor from a “hold” rating to a “buy” rating and set a $72.00 target price on the stock in a research report on Thursday, July 12th. KeyCorp upgraded shares of Nucor from a “sector weight” rating to an “overweight” rating and set a $77.00 target price on the stock in a research report on Tuesday, July 24th. Macquarie upgraded shares of Nucor from a “neutral” rating to an “outperform” rating and set a $75.00 target price on the stock in a research report on Thursday, May 17th. Finally, Morgan Stanley lifted their target price on shares of Nucor from $68.00 to $73.00 and gave the stock an “equal weight” rating in a research report on Tuesday, April 17th. Five research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $71.16.

Nucor opened at $65.69 on Thursday, Marketbeat reports. Nucor Co. has a 12-month low of $51.67 and a 12-month high of $70.48. The stock has a market capitalization of $21.29 billion, a price-to-earnings ratio of 14.30, a PEG ratio of 0.76 and a beta of 1.57. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.55 and a current ratio of 3.05.

Nucor (NYSE:NUE) last released its quarterly earnings data on Thursday, July 19th. The basic materials company reported $2.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.10 by ($0.03). Nucor had a net margin of 7.58% and a return on equity of 16.22%. The firm had revenue of $6.46 billion during the quarter, compared to analysts’ expectations of $6.47 billion. During the same quarter in the previous year, the firm posted $1.00 EPS. Nucor’s revenue was up 24.9% compared to the same quarter last year. equities analysts predict that Nucor Co. will post 7.3 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 10th. Shareholders of record on Friday, June 29th will be given a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.31%. The ex-dividend date of this dividend is Thursday, June 28th. Nucor’s payout ratio is 43.30%.

About Nucor

Nucor Corporation manufactures and sells steel and steel products in the United States and internationally. It operates in three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; hollow structural section steel tubing, steel electrical conduit, plate steel, and structural steel products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, wire rods, and special bar quality; and tubular and plate steel products.

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HSBC Analysts Give Intesa Sanpaolo (ISP) a €3.00 Price Target

Intesa Sanpaolo (BIT:ISP) received a €3.00 ($3.53) price target from stock analysts at HSBC in a research report issued to clients and investors on Thursday. The brokerage presently has a “buy” rating on the stock. HSBC’s target price points to a potential downside of 2.60% from the stock’s current price.

Several other equities research analysts have also recently commented on ISP. Deutsche Bank set a €3.20 ($3.76) price target on shares of Intesa Sanpaolo and gave the stock a “buy” rating in a research report on Thursday. Cfra set a €2.70 ($3.18) price target on shares of Intesa Sanpaolo and gave the stock a “neutral” rating in a research report on Thursday. Credit Suisse Group set a €3.00 ($3.53) price target on shares of Intesa Sanpaolo and gave the stock a “buy” rating in a research report on Wednesday, July 25th. JPMorgan Chase & Co. set a €2.90 ($3.41) price target on shares of Intesa Sanpaolo and gave the stock a “neutral” rating in a research report on Thursday. Finally, Royal Bank of Canada reiterated a “neutral” rating on shares of Intesa Sanpaolo in a research report on Wednesday. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and ten have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of €3.07 ($3.61).

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Shares of BIT:ISP traded up €0.06 ($0.07) during trading on Thursday, hitting €3.08 ($3.62). 234,460,000 shares of the company’s stock were exchanged, compared to its average volume of 107,040,000. Intesa Sanpaolo has a 1-year low of €2.39 ($2.81) and a 1-year high of €3.23 ($3.80).

Intesa Sanpaolo Company Profile

Intesa Sanpaolo S.p.A. provides various banking products and services. It operates through Banca dei Territori, Banking, Internat Subsidiary Banks, Private Banking, and Asset Management business units. The company offers lending and deposit products; corporate, investment banking, and public finance services; industrial credit, factoring, and leasing services; asset management solutions; life and non-life insurance products; and bancassurance and pension fund, and fiduciary services.

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Better Buy: Raytheon Company vs. Huntington Ingalls

Raytheon (NYSE:RTN) and Huntington Ingalls (NYSE:HII), though both major Pentagon contractors, offer two very different profiles to potential investors. Huntington Ingalls is at its heart a metal-bender, a shipbuilding specialist responsible for the Navy's massive carriers and a significant portion of the rest of the fleet. Raytheon meanwhile doesn't make any of the tanks, planes, or ships that show up on military recruitment posters, but its electronics, sensors, and missiles can be found on seemingly every weapons system the Pentagon deploys.

Raytheon is also a much larger company than Huntington Ingalls, generating three-times the revenue and commanding a market capitalization five times greater. But its shares are also more expensive on both a price-to-earnings and price-to-sales.

The companies do have similarities, notably they both figure to be among the major beneficiaries of an ongoing surge in Pentagon spending.

Here's a look at the outlook for both Raytheon and Huntington Ingalls, to determine which, if either, is the better buy today.

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Market Cap

TTM Revenue

TTM P/E Ratio

TTM P/S Ratio

TTM Dividend Yield

Raytheon	$56.21B	$25.61B	28.19	2.20	1.66%
Huntington Ingalls	$10.32B	$7.59B	20.40	1.36	1.14%

Source: Yahoo! Finance. Data as of July 27, 2018. TTM = Trailing-twelve months

Rockets firing

Raytheon is a defense specialist focused on areas including precision weapons, anti-missile systems, sensors, and radars, areas of particular interest to the Pentagon and U.S. allies. It's sensor business earlier this year beat out Northrop Grumman to win a high-profile award to supply a sophisticated camera system for Lockheed Martin's F-35 fighter, and its radar units are also the eyes behind Lockheed's THAAD anti-ballistic missile system.

A Raytheon-made Tomahawk cruise missile. Image source: Raytheon.

The company is also the most diverse U.S. prime contractor in terms of international sales, with foreign customers accounting for about one-third of total revenue and more than 40% of its backlog. Raytheon's Patriot missile systems are deployed across the Middle East and in a growing number of European countries.

Raytheon on July 26 reported a second quarter beat thanks to growing missile sales and increased classified work and hiked its fully year revenue guidance by $1 billion to between $28.5 billion and $29.5 billion in sales. The company expects significant orders in the second half of the year for its Tomahawk, Griffin, and other missile systems, but if anything remained conservative on the timing of foreign Patriot and radar orders that could offer additional upside for late 2018 or into 2019.

Caution about foreign sales is advisable, as after a three-year run that saw shares of Raytheon more than double investors of late have been growing increasingly concerned that tough talk from the White House on tariffs and toward NATO would cause some of the U.S.'s closet allies to invest in domestic programs instead of buying U.S. armaments.

Raytheon has argued that its missile systems are somewhat immune to those pressures because of their superior performance on the battlefield, but in the current climate it is likely best not to over-promise.

Investors were also concerned with Raytheon's 2018 cash flow projections. The company said it made a $1.25 billion pension contribution designed to take advantage of tax cut legislation and cut its 2018 effective tax rate from an estimated 18% to about 10.5%. Because of that contribution the company said it expects full-year operational cash flow from continuing operations to come in at between $2.6 billion and $3 billion, down from an earlier estimate of $3.6 billion or $4 billion.

Shares of Raytheon fell 3% in the hours after that cash guidance was released. They recovered much of that loss as the day went on, but the drop can be read as some investor nervousness that after a few good years there might not much further for Raytheon to climb.

Safe harbor

Huntington Ingalls, with vast shipyards in Newport News, Va., and along the U.S. Gulf Coast, is perhaps the best positioned company to take advantage of White House plans to rapidly expand the size of the U.S. Navy in the years to come. While the stated goal to grow the fleet by more than 25% to 350 vessels might not be realistic, it is clear a steady stream of new orders will continue to roll in and additional refurbishment work will be available as the Navy tries to keep existing ships in service longer.

Huntington Ingalls-built USS Gerald R. Ford. Image source: Huntington Ingalls.

Huntington shares, similar to Raytheon, have doubled over the last three years on excitement about increased spending, but also like Raytheon there has been a pullback of late. Shares are off more than 10% from their peak earlier this year after first quarter results raised questions about whether the stock had run too high too quickly.

The logic behind the run-up was solid, as Huntington can boast a backlog of more than $20 billion in projects and hopes to grow revenue by 3% annually over the next five years. CEO Mike Petters, on a call with analysts in May, said this is "the most exciting shipbuilding environment in over 30 years."

RTN and HII data by YCharts

But Huntington Ingalls is in the early stage of some of its key multiyear procurements, and shipbuilding by its nature tends to not be as profitable early in a contract as ramp-up costs are high and margins tend to come under pressure. If the steady flow of new business continues as expected it might be some time before Huntington Ingalls has the more mature product mix that usually leads to higher profits.

All that business and the promise of future earnings is a great problem to have, but it could lead to some choppy sailing for investors in the quarters to come.

The better buy is...

It's easy to make the case that both of these companies are solid stocks to hold, both possessing strong management teams, clear strategies, and a reliable, predictable path to grow both revenue and earnings. However, neither is a clear buy at this moment.

It remains to be seen how quickly all of the new business Huntington Ingalls expects will impact the bottom line, and if the price drop after last quarter's earnings report is any indication Wall Street is in no mood to wait it out. Raytheon meanwhile appears a better bet to show real earnings momentum over the next twelve months, but the stock is already trading at lofty levels, trailing only Lockheed among defense primes in terms of price-to-earnings.

If forced to choose today I'd buy into Raytheon and hope that with business showing no sign of slowing down the current multiples can be sustained as earnings grow, though I still believe there are better bargains to be found in the defense patch.

These are two solid companies, but it is far from certain that either will be able to outperform the market over the quarters to come.

Q3 2018 EPS Estimates for First Community Co. Lifted by FIG Partners (FCCO)

First Community Co. (NASDAQ:FCCO) – Analysts at FIG Partners upped their Q3 2018 earnings estimates for shares of First Community in a research note issued on Thursday, July 19th. FIG Partners analyst B. Martin now forecasts that the bank will post earnings of $0.40 per share for the quarter, up from their previous forecast of $0.39. FIG Partners also issued estimates for First Community’s Q4 2018 earnings at $0.38 EPS, FY2018 earnings at $1.52 EPS, Q2 2019 earnings at $0.42 EPS, Q3 2019 earnings at $0.43 EPS, Q4 2019 earnings at $0.39 EPS and FY2019 earnings at $1.60 EPS.

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First Community (NASDAQ:FCCO) last issued its earnings results on Wednesday, July 18th. The bank reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.02. The business had revenue of $11.85 million for the quarter, compared to analysts’ expectations of $11.65 million. First Community had a net margin of 17.48% and a return on equity of 9.78%.

Other research analysts have also recently issued research reports about the stock. ValuEngine raised shares of First Community from a “hold” rating to a “buy” rating in a report on Monday, April 2nd. Zacks Investment Research raised shares of First Community from a “hold” rating to a “buy” rating and set a $28.00 price target on the stock in a report on Friday.

First Community stock opened at $25.45 on Friday. The firm has a market capitalization of $191.54 million, a PE ratio of 23.35 and a beta of 0.65. First Community has a fifty-two week low of $19.60 and a fifty-two week high of $26.25. The company has a current ratio of 0.75, a quick ratio of 0.74 and a debt-to-equity ratio of 0.14.

Institutional investors have recently added to or reduced their stakes in the company. Wells Fargo & Company MN grew its position in First Community by 528.5% in the fourth quarter. Wells Fargo & Company MN now owns 13,809 shares of the bank’s stock worth $313,000 after acquiring an additional 11,612 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in First Community in the fourth quarter worth $240,000. Renaissance Technologies LLC purchased a new position in First Community in the fourth quarter worth $348,000. Deutsche Bank AG grew its position in First Community by 44.8% in the fourth quarter. Deutsche Bank AG now owns 10,825 shares of the bank’s stock worth $244,000 after acquiring an additional 3,350 shares in the last quarter. Finally, Millennium Management LLC purchased a new position in First Community in the fourth quarter worth $245,000. 41.42% of the stock is currently owned by hedge funds and other institutional investors.

In other news, insider Michael C. Crapps sold 1,262 shares of the company’s stock in a transaction on Friday, April 27th. The shares were sold at an average price of $23.00, for a total value of $29,026.00. Following the transaction, the insider now owns 68,196 shares of the company’s stock, valued at $1,568,508. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 7.38% of the company’s stock.

The company also recently declared a quarterly dividend, which will be paid on Monday, August 13th. Stockholders of record on Monday, July 30th will be issued a $0.10 dividend. The ex-dividend date of this dividend is Friday, July 27th. This represents a $0.40 annualized dividend and a dividend yield of 1.57%. First Community’s payout ratio is currently 36.70%.

About First Community

First Community Corporation operates as the bank holding company for First Community Bank which offers various commercial and retail banking products and services to small-to-medium sized businesses, professional concerns, and individuals. The company operates through four segments: Commercial and Retail Banking, Mortgage Banking, Investment Advisory and Non-Deposit, and Corporate.

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AT&T adds three cities to mobile 5G plan

Lightning-fast 5G service may soon be within your reach.�

As part of its plan to bring speedy mobile 5G service to a dozen cities this year, AT&T announced Friday the names of three of those locations,�Charlotte, Raleigh and Oklahoma City. The trio joins the previously announced cities that AT&T says will have access to its 5G network in 2018,Dallas, Atlanta and Waco.�

In a statement, AT&T said that the company is deliberately targeting a mix of mid-size and large cities, stating that all Americans should be able to use better connectivity "to avoid a new digital divide."

"5G will be more than just a better network," AT&T technology and operations president Melissa Arnoldi said. "We believe 5G will ultimately create a world of new economic opportunity, greater mobility, and smarter connectivity for individuals, businesses and society as a whole.��

5G service is seen as the necessary step to power a new class of technology such as self-driving cars and streaming virtual reality as well as faster smartphones. AT&T has been competing with rival Verizon Wireless to bring the next generation service to consumers. Verizon is launching its own limited 5G mobile rollout this year.

T-Mobile is planning to build out 5G in 30 cities next year. The company it hopes to merge with, Sprint, is also eyeing a 2018 5G launch.

Initial 5G installments will be rolled out through "fixed wireless" service, which is essentially a broadband alternative. �Most�5G capable phones are expected to come next year, though some handsets could show up before the end of 2018.

More: Speedy 5G service is coming to smartphones later this year, AT&T says

More: 5G speed phones: We now know when they're coming, and where

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Brokerages Set Xylem Inc (XYL) PT at $79.78

Xylem Inc (NYSE:XYL) has been assigned an average recommendation of “Buy” from the twelve brokerages that are presently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and seven have assigned a buy recommendation to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $79.78.

A number of equities research analysts recently weighed in on the company. Zacks Investment Research upgraded Xylem from a “hold” rating to a “buy” rating and set a $88.00 price target on the stock in a report on Tuesday, March 20th. Boenning Scattergood restated a “buy” rating and issued a $90.00 price target on shares of Xylem in a report on Tuesday, May 1st. BMO Capital Markets lowered their price target on Xylem from $86.00 to $83.00 and set an “outperform” rating on the stock in a report on Wednesday, May 2nd. Oppenheimer restated a “buy” rating and issued a $82.00 price target on shares of Xylem in a report on Tuesday, May 1st. Finally, Canaccord Genuity set a $78.00 price target on Xylem and gave the stock a “hold” rating in a report on Tuesday, April 24th.

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In other Xylem news, Director Curtis J. Crawford sold 7,500 shares of the stock in a transaction on Monday, May 14th. The stock was sold at an average price of $73.39, for a total transaction of $550,425.00. Following the sale, the director now owns 41,744 shares in the company, valued at approximately $3,063,592.16. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.81% of the stock is currently owned by corporate insiders.

A number of large investors have recently made changes to their positions in the business. Baillie Gifford & Co. grew its holdings in Xylem by 19.0% during the 2nd quarter. Baillie Gifford & Co. now owns 48,518 shares of the industrial products company’s stock valued at $3,269,000 after buying an additional 7,748 shares during the last quarter. Smithfield Trust Co. lifted its stake in shares of Xylem by 1,690.0% during the 2nd quarter. Smithfield Trust Co. now owns 1,611 shares of the industrial products company’s stock worth $108,000 after purchasing an additional 1,521 shares during the period. Rathbone Brothers plc lifted its stake in shares of Xylem by 99.7% during the 2nd quarter. Rathbone Brothers plc now owns 95,350 shares of the industrial products company’s stock worth $6,425,000 after purchasing an additional 47,605 shares during the period. Atria Investments LLC purchased a new position in shares of Xylem during the 2nd quarter worth $571,000. Finally, Daiwa SB Investments Ltd. lifted its stake in shares of Xylem by 192.2% during the 2nd quarter. Daiwa SB Investments Ltd. now owns 59,657 shares of the industrial products company’s stock worth $4,020,000 after purchasing an additional 39,242 shares during the period. Hedge funds and other institutional investors own 82.99% of the company’s stock.

XYL opened at $67.80 on Friday. The company has a market capitalization of $12.33 billion, a P/E ratio of 28.25, a PEG ratio of 1.32 and a beta of 1.09. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.02 and a current ratio of 1.42. Xylem has a 1-year low of $56.18 and a 1-year high of $79.83.

Xylem (NYSE:XYL) last released its quarterly earnings results on Tuesday, May 1st. The industrial products company reported $0.51 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.51. The business had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.19 billion. Xylem had a return on equity of 18.31% and a net margin of 7.29%. The company’s revenue was up 13.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.39 EPS. equities research analysts forecast that Xylem will post 2.89 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, June 21st. Shareholders of record on Thursday, May 24th were issued a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 1.24%. The ex-dividend date was Wednesday, May 23rd. Xylem’s dividend payout ratio (DPR) is presently 35.00%.

About Xylem

Xylem Inc engages in the design, manufacture, and service of engineered solutions for the water and wastewater applications. It operates through three segments: Water Infrastructure, Applied Water, and Measurement and Control Solutions. The Water Infrastructure segment offers various products, including water and wastewater pumps, and controls and systems, as well as filtration, disinfection, and biological treatment equipment under the Flygt, Godwin, Wedeco, Sanitaire, and Leopold names for the transportation, treatment, and testing of water and wastewater applications.

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Under the Radar: The Supreme Court Decision Brett Kavanaugh Is Most Likely to Overrule

By William A. Galston of the Brookings Institution

Brett Kavanaugh, President Trump’s nominee to replace retiring Supreme Court Justice Anthony Kennedy, is less likely to override Roe v. Wade than to rein in the agencies at the heart of the modern administrative state. Here’s why:

During the 1930s, President Franklin Roosevelt proposed��and the Congress ratified��the creation of new agencies to help implement the expansive legislation at the heart of the New Deal. After years of bipartisan fact-finding and deliberation, Congress codified the activities of the agencies in the Administrative Procedure Act (1946), which sets forth the processes through which regulations and other forms of legislative implementation may proceed.

This statute gives formal and, in the eyes of many, quasi-constitutional status to the modern administrative state. It also raises enduring questions about the relationship between agencies and the three constitutionally established branches of government. For example, when an agency claims authority to promulgate a regulation, who has the power to limit the exercise of this authority? When someone takes an agency to court asserting that a regulation lacks legislative justification, what standards should the courts use to weigh this claim?

Nearly a quarter of a century ago, in Chevron v. NRDC (1984), the Supreme Court offered a clear answer: unless Congress has spoken clearly on the subject of a regulation, the courts should defer to an agency’s decision as long as it is reasonable, even if the courts would have reached a different interpretation. Whenever a statute is ambiguous, the agency enjoys wide discretion. Anything that is not unreasonable lies in the zone of the permissible.

As both an appellate judge and legal commentator, Mr. Kavanaugh has been critical of this decision. In a 2016 article in the Harvard Law Review, he states that Chevron “has no basis in the Administrative Procedure Act” and represents “an atextual invention by courts.” In fact, he adds, the decision is “nothing more than a judicially orchestrated shift of power from Congress to the Executive Branch.”

Mr. Kavanaugh objects not only to the jurisprudence underlying the decision, but also to its consequences. “From my more than five years of experience in the White House,” he declares, “I can confidently claim that Chevron encourages the Executive Branch (whichever party controls it) to be extremely aggressive in seeking to squeeze its policy goals into ill-fitting statutory authorizations and restraints.”

In short, this decision unleashes presidents’ incentives to push their executive authority to the limit, often beyond. The reason, Kavanaugh says, is rooted in today’s partisan and legislative gridlock: “Presidents run for office on policy agendas and it is often difficult to get those agendas through Congress. So it is no surprise that presidents and agencies often will do whatever they can within existing statutes. And with Chevron in the mix, that inherent aggressiveness is amped up significantly.”

Because Kavanaugh sees this decision as a source of constitutional distortion, he is determined to limit its scope. To this end, his Harvard Law Review article offers three proposals. First: keeping with a proposal first offered by Stephen Breyer before he joined the Court, and subsequently endorsed by the Court in King v. Burwell (2015), Chevron should not apply in cases involving questions of major significance. Second: as suggested in United States v. Mead (2001), Chevron should not apply unless Congress has delegated authority to the agency to make rules carrying the force of law and the agency is making rules pursuant to that authority.

Third (and here Kavanaugh breaks new ground): courts should hesitate to expand agency discretion by determining that statutes are ambiguous. Given the imperfections of language, a topic James Madison discusses in Federalist #37, most sentences will contain an element of indeterminacy. How can Congress limit the scope of agency discretion? Some judges will discern clarity where others see ambiguity. The idea of ambiguity is itself ambiguous. But if nearly everything can be deemed ambiguous, what’s the point of drafting legislation?

Kavanaugh proposes to escape this cul de sac by adopting a new presumption: when there is a high probability that a certain interpretation of the statute represents the best reading, the court should adopt this reading, even if the matter is not entirely free from doubt. The legislative will of Congress should prevail over executive power, at least when the courts are prepared to interpret statutes authoritatively.

Along with many conservatives, Kavanaugh believes that the administrative state has run amok, empowering policy judgments that lack statutory warrant and escape judicial review. And he has a plan, or perhaps two plans, to rein in runaway agencies. Whenever circumstances permit, he will interpret the scope of Chevron as narrowly as possible. And if the occasion presents itself, he may well vote to overrule it. Yes, the decision has the force of precedent. But if it lacks statutory authority, as Kavanaugh contends, the doctrine of stare decisis may not be enough to protect it.

A post-Chevron world would expand judicial power in the administrative sphere at the expense of both Congress and the executive. More regulations probably would fail judicial tests. The regulatory process, already more like a marathon than a sprint, would slow further. In response, Congress might work harder to make its legislative intentions clear, and the White House might work harder to remain within the four corners of congressional intent.

This article appeared originally at the Brookings website, along with links to other materials that may be of interest.

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8 Top Picks From Credit Suisse With Implied Upside of 50% or More

Papa John's was already losing the pizza wars

Papa John's still has a pizza problem.

John Schnatter, the founder and public face of the company, has resigned as chairman and apologized for using the N-word on a conference call.

But the company still has to contend with a dreadful sales slump. It's losing the pizza wars to Pizza Hut and Domino's.

Earlier this decade, Papa John's (PZZA) was gaining market share against its competitors, said Chris O'Cull, an analyst for Stifel.

But a couple of years ago, customers started paying closer attention to price. Pizza Hut started offering more aggressive promotional deals. Domino's (DPZ), the industry leader, had been offering deals for years. After years of selling customers on quality, Papa John's wasn't able to switch gears.

"Papa John's never really had competed on a value message," O'Cull said.

After years of expanding, the company's sales growth began to slow.

Papa John's reported late last year that comparable store sales were up just 1%, a sharp slowdown from the year before.

Schnatter blamed the NFL's response to players who were taking a knee to protest racial injustice. That only seemed to make things worse.

The comments spurred a backlash on social media, and Papa John's had to distance itself from neo-Nazi groups. The company eventually ended its partnership with the NFL. And the business started hurting even more.

"The sales really fell off a cliff in the fourth quarter," O'Cull said.

In the last three months of 2017, comparable store sales in North America were down 3.9%. It got worse in the first three months of this year �� a 5.3% drop.

Steve Ritchie, who replaced Schnatter as CEO in January, has promised to boost sales by overhauling the company's marketing efforts, lowering prices, increasing digital sales through better tech and making stores more efficient.

Now he also has to contend with the fallout from Schnatter.

On Wednesday, Schnatter apologized and resigned as chairman after Forbes reported that he used the N-word in May while participating in a role-playing exercise designed to prevent public relations crises.

John Schnatter's likeness is on Papa John's pizza boxes.

Wall Street responded well on Thursday. Shares of the company closed up 11%.

But Schnatter remains on the board and owns almost 30% of the stock.

And his exit could still cause problems for the company, particularly with marketing and advertising, said BTIG analyst Peter Saleh. The company's chief marketing officer left his post in May after just a year on the job. And Schnatter has been the face of the company for more than a decade.

"The big question is going to be whether they bring him back in the advertising or branding," O'Cull said.

That seems unlikely, at least in the short term. Baseball's Miami Marlins ended a promotional partnership with Papa John's on Thursday and called Schnatter's comments "derogatory and insensitive."

It's also not clear who will help Papa John's move forward. Laundry Service, a marketing agency that had been working with the company, was on the conference call in May and has moved to terminate its contract with Papa John's, Forbes reported.

Laundry Service declined comment. Papa John's did not immediately respond to a request for comment.

"The lack of an agency ... would seem to leave marketing efforts in disarray," Saleh wrote in a note on Wednesday.

�� CNN's Nathaniel Meyersohn contributed to this report.

How to Find Great Software-as-a-Service Companies

All software-as-a-service businesses benefit from recurring revenue and most have the ability to scale quickly, but how can investors know which ones are the best bet?

In this episode of The Motley Fool's�Industry Focus: Technology, host Dylan Lewis is joined by Motley Fool contributor Brian Feroldi to discuss customer acquisition cost, lifetime value, and a few other must-know metrics. They also chat about why Adobe Systems (NASDAQ:ADBE), BlackLine (NASDAQ:BL), AppFolio (NASDAQ:APPF), HubSpot (NYSE:HUBS), and Shopify (NYSE:SHOP) might deserve a spot on your radar.

A full transcript follows the video.

This video was recorded on July 6, 2018.

Dylan Lewis: Why don't we talk about some of the other things that are worth looking at as an investor in this space? I think that, for me, one of the struggles with SaaS businesses is that, very often, it's a space that I don't know super well. I think that this is a space where you can definitely enjoy some of those Peter Lynch-style advantages in investing in what you know -- if you're in a space where highly technical software is very valuable and helps eliminate a lot of business friction, then you might have an advantage here. When I read these press releases or these company write-ups from SaaS companies, they're often sounding like high-flying, amazing businesses that are going to change the world. It can be a little difficult to parse through, "What is this company's actual standing in the market? How much better is it than the existing competitors that are out there?"

Brian Feroldi: That is something that can be tough for investors to wrap their head around, especially if you're not actually using the software itself. That can be a difficulty with investing in this space. If you're not exposed to the software like you would be as a user of, say, Facebook or Twitter or some mass-consumer brand, it can be difficult to figure out where the company stands in the market.

Lewis: That's why I think looking at some of these metrics is important. Why don't we talk about customer acquisition cost and some of the other things that play into what builds a sustainable and successful long-term SaaS company?

Feroldi: There are a couple of metrics that are unique to the SaaS business model that are really important for investors to know. The first one there is customer acquisition cost. This is basically, how much money does a company have to spend on sales and marketing to acquire one new customer? The way you calculate this is, you take the amount of money spent on sales and marketing in one period -- say, a year -- and you divide it by the number of new customers that are obtained in that same time period. Really quickly, let's pretend that a company spent $1 million on sales and marketing, and they picked up a thousand new customers. Their customer acquisition cost would be $1,000 per customer.

As a rough guide, a good customer acquisition cost number to aim for is, you want about a 12-month payback period. If it costs you $1,000 to acquire a new customer, you want them to pull in $1,000 in revenue from that customer in about a year.

Lewis: You can look at customer value that way. You can also look at things from a lifetime value perspective with these SaaS businesses.

Feroldi: The lifetime value is another absolutely critical number. It's basically, how much revenue are you going to pull in from a customer over their lifetime with your product? The way that you calculate this is, you figure out how much revenue the average customer or average user is pulling in per year, and then you divide that by their churn rate. Again, let's say a customer is $1,000 per year in revenue, and every year, you lose about 10% of your customer base. Well, $1,000 divided by 10% is $10,000. So, the average lifetime value of any given customer would be about $10,000.

Lewis: To put together the two metrics we just talked about, you want your lifetime value to be higher than your acquisition cost. That's the way that, eventually, this software that you're offering is going to be profitable.

Feroldi: Yeah, absolutely. As long as the lifetime value of a customer exceeds its customer acquisition cost, that's a good thing. As a general guideline, you want to see the lifetime value of a customer exceed about 3X the customer acquisition cost. That's a good metric for telling you that you have a good SaaS business.

Lewis: Something else you'll see in looking at some prospectuses and filings from these SaaS businesses is the idea of a dollar revenue retention rate. It's a mouthful as a metric, but really, it's a simple calculation. It's something that anyone that follows restaurant stocks might be somewhat familiar with, because it's very similar to a comps number that you'll see there.

Feroldi: Exactly, it's very similar to same-store sales. The idea is, how much revenue are you pulling in from your existing customer base one year compared to the next. Calculating it is, revenue at the start of the year, and then you add in upselling, you subtract churn and downgrades. This number is expressed as a percentage. Any number over 100% means that you're growing revenue within your existing customer base; then, if you add in new customers on top of that, that can lead to explosive revenue growth.

Lewis: I think that you have to focus on some of these metrics, because by traditional valuation metrics and a lot of traditional financial analysis, a lot of early stage SaaS companies can look kind of ugly on their financial statements. A lot of them wind up losing a lot of money. You need to see that, down the road -- maybe it's five years out, maybe it's ten years out -- there's a path to profitability, and there's a stickiness with the existing user base that will continue to grow.

Feroldi: If you look at a lot of the SaaS companies that are on the market today, many of them, especially the smaller ones, are still posting losses. That's because of the revenue dynamic we talked about before, where they're not pulling in as much upfront. A lot of them are also tech companies, so they're giving out a generous amount of stock option grants, which also subtracts from revenue. Looking at the traditional numbers, like earnings per share, isn't necessarily the best way to look at these businesses.

Lewis: But the reason Wall Street is willing to afford them the ability to lose money for such a long period of time is, with this model, at a certain customer count, you are basically making pure money. There's some additional usage fees and costs that come with adding those customers on, but really, you've laid out all these costs with infrastructure and building out your services, and it's just a matter of spreading that over enough customers and enough account usage to make the numbers work.

Feroldi: Yeah, absolutely. After a certain point, after a certain size, every new customer that you add, it's not pure profit, but it's pretty darn close. These businesses scale beautifully, where they go from very, very low profit margins to very, very high profit margins very quickly.

Lewis: One of the things that Lewis asked in his question that I want to get back to is, "Do you see SaaS as a market sector with many sub-sector winners, or a few giant winners taking all?" I think that's a very natural question when you look at the players in this space. You have the big companies like Microsoft, Adobe, Salesforce, IBM, Oracle. They're all playing there. Any time you look at a space where you have those big tech giants, it's easy to say, "Well, they could just hop in and take everything. They could eat everyone's lunch if they wanted to."

When you look at this, Brian, how do you approach that? How do you look at what segments of the market might be clear from being scooped up by big tech?

Feroldi: That's something that I do think about, but my response to that would be, in general, the switch from the traditional model to SaaS is ongoing. The whole SaaS pie is expanding very quickly from year to year. It's not necessarily a winner-take-all market yet.

There's also a ton of room for niche applications for these businesses. One of the companies that we've touched on a few weeks ago when I was on the show was BlackLine. They have targeted this niche of real-time accounting software, which is something that not many other companies are going after. So, there is plenty of room, I think, for smaller players that take a more niche focus to succeed.

Lewis: The way that I look at this space is, you can go with some of the big folks and have exposure to both the cloud tailwinds and software-as-a-service tailwinds; or, you can go and look at mid and small-cap companies. A lot of the names that we've discussed on this show together before -- whether it's Shopify, Paylocity, AppFolio -- a lot of those companies operate in spaces that are, or were when they started, a little too small for these tech companies to get into. For them to lay out the resources, they weren't going to move the needle enough for it to make sense for them as a business.

Feroldi: Yeah. That's exactly the way that I look at it, too. I think there's room for the big guys, the middle guys, and the small guys in anybody's portfolio that's interested in this. I personally invest in companies that are small, mid and large-cap.

Lewis: Why don't we talk about a few companies that are on your radar right now, or ones that you currently own that you like?

Feroldi: I've talked about a couple of them on the show before. A big company, I think most people know who Adobe is. They make their Creative Suite of products like Acrobat. They're the premiere name in photo and video editing.

A couple of years ago, they decided to transition their entire business from a license software model to a SaaS model. While that transition period was a little bit rocky, just because of what happens to your revenue when you do that, they are now, the majority of their sales are subscription-based, and their business has just been on fire for the last couple of years. Revenue and profits are growing by over 20%. That's a business that I own and like a lot.

Lewis: It's nice to see a big legacy player make the pivot to this space and make it, what seems to be, very well. What are some smaller names or companies that have come into the world as pure-play SaaS companies that you like?

Feroldi: Here's a couple of the ones that I've talked about previously. There's BlackLine -- their niche is disrupting the way that accounting is done. They're going for real-time accounting vs. the batch model. What I really like about them is, there's very little competition in their space, and they're a leader.

Another one I've talked about before on this show was AppFolio. They focus on real estate and legal, small legal businesses and small real estate businesses. Those are super niche markets that they can establish dominance in. They add more niche markets over time, so they can grow.

HubSpot is a company that is transitioning to inbound marketing, which is when you have a blog, or you create content that consumers want to reach that helps you grow your brand. That's a company that I like a lot.

And then, one that listeners are probably very familiar with is Shopify. They help businesses sell products, basically, online, and they create tools that make payment processing very easy.

Lewis: Thank you very much for giving me that rundown, Brian. That was a bit of a mouthful there. I think, to wrap all of this conversation, why don't we hit a couple of risks and things that people should keep in mind? We gave that metrics rundown before. I think, to get a little bit less technical, we talked about how a lot of these companies are high-growth and very often not profitable because they are so early on in building out their customer base. That can put people in a spot where they're buying stocks that are already pretty bought up and are at pretty rich valuations.

Feroldi: Yeah. SaaS businesses in general have been on fire over the last couple of years. I've seen price to sales ratios for almost every business that I follow just keep expanding and expanding and expanding over time. There is the risk that, at some point, investors are paying way too high of a price for these businesses. That's a risk for investors right now.

There's other ones, too. So many companies are getting into the SaaS space that competition in a lot of these is really starting to increase. A couple of companies that I like a lot in this space are Paylocity and Paycom Software. They focus on payroll processing. Well, that market is big and growing, but it's also becoming intensely competitive. That's another risk for investors to watch.

Finally, the thing that I'm going to focus my time and attention on is really looking at churn. The SaaS business model only works if you get a customer and keep them for as long as possible. If competition comes in, or the company doesn't innovate fast enough, and churn starts to increase, that could lead to revenue not growing as quickly, and investors can really get burned.

Lewis: You can almost think of SaaS companies as gym memberships. You want to be able to sell gym memberships and have people just continue to pay you to use them.

Feroldi: That's exactly right. That's a great analogy.

Lewis: I guess where it falls short is that there's unlimited number of memberships at this gym. Space doesn't matter.

Feroldi: That's right, there's a lot more potential for profit expansion at SaaS.

How not to be a knucklehead on Venmo

Venmo takes the anxiety out of splitting brunch and utility bills. With a linked bank account and someone��s username, you can send and request cash in a few taps. But some wonder if the app makes it a little too easy for people to hit each other up for money.

Just ask Soham Maniar of Houston. He was hosting a friend for a weekend, and the two took an Uberpool to dinner. Later, Maniar was surprised to receive a request for $2.85, his half of the ride cost.

��When someone is nice enough to host a friend or guest, it doesn't mean you have to give them something in return, but I think in a world without Venmo, that friend would not have asked me for $2.85 in cash after I got out of a cab,�� Maniar says.

You can take advantage of Venmo without ticking off your friends with these simple tips from Maniar and others.

Try not to sweat the small stuff

��Anything under $20 with friends I usually never charge,�� Maniar says. ��And if someone did something nice for me, I try and return the favor when it makes sense.��

There��s no right threshold. After all, if it��s almost payday and you have a $30 bank balance, covering a coworker��s coffee might not be in your budget. ��It��s not nickel-and-diming if [the amount] does make a difference,�� says Erin Lowry, author of ��Broke Millennial.��

But if you can afford it, consider springing for small items once in a while. When Maniar treats, he says, ��I like to assume they��ll treat me for something in return in the future. It probably evens out.��

Reciprocity is key, though. If you notice that one of your friends tends to take advantage, ��you need to have a conversation,�� Lowry says �� in person. ��Don��t Venmo them for the last six years of your friendship.��

More: Not just credit cards: More retail apps are offer ways to get cash back

More: Curbing instant gratification: 4 ways to temper your online shopping impulse

More: Fourth of July holiday gas prices hit 4-year high

Don��t stealth-charge

Venmo and other peer-to-peer payment apps let you request money without asking first �� even without a username, which you can find with the app��s search function �� but that doesn��t mean you should. Establishing how you��ll split the bill (or that you��ll split the bill) ahead of time helps avoid annoyance later.

��Unless we��ve spoken about sharing a cost, don��t expect a Venmo request from me for splitting it,�� says Stefanie O��Connell, a finance blogger. And ��don��t send me a Venmo for the guacamole you offered me a bite of,�� she adds.

Spell it out

Use the memo field to add detail about the request, especially when you��re splitting multiple bills. (Emoji not required.)

��Before sending someone a request for money, you should clear it with them, including what it's for and what they should expect to pay,�� says Elaine Swann, a lifestyle and etiquette expert.

After a weekend trip, a simple note, such as ��Hotel $100, gas $40, dinner $30�� can take the stress off your recipient, particularly if you��re requesting a large chunk of money.

Make your transactions private

You can control who sees your transactions on an individual basis or set a default for your account: private or friends only. If your friend��s account is wide open but yours is locked up, the app will honor the more restrictive setting, according to Venmo��s website.

To privatize your feed, open your Venmo menu, scroll down to ��settings,�� and then click on ��privacy.�� Be sure to click ��save�� when you��re done.

For O��Connell, privacy is important on the app. ��Who owes me money and who I owe is nobody��s business but our own,�� she says.

CLOSE

Peer-to-peer payment platforms like Venmo, Zelle or Cash App are easy to use -- but you need to avoid scams. Here are some best practices. Jennifer Jolly, Special for USA TODAY

It��s like real life �� but (hopefully) better

Does Venmo actually make people ruder? Or is it just another way to demonstrate rudeness? It��s a chicken-or-egg argument with no easy answer �� but some suspect it��s more often the latter.

��If you��re a jerk, you��re probably going to be a bigger jerk [on Venmo],�� Swann says.

Lowry agrees: ��If you're somebody who remembers that four years ago your friend borrowed money for coffee and never paid you back, you're going to use Venmo that way,�� she says.

The good news is that if you��re considerate about money outside of the digital world, you��re well on your way to being considerate about Venmo. Think of it as a tool for payment, not a substitute for communication, and soon you��ll be splitting brunch without provoking a single eye roll.

More from NerdWallet:

Best Ways to Send Money

What is Venmo?

How to Choose the Right Budget System

Alice Holbrook is a personal finance writer at NerdWallet. Email: alice.holbrook@nerdwallet.com. NerdWallet is a USA TODAY content partner providing general news, commentary and coverage from around the web. Its content is produced independently of USA TODAY.

Atlantic Capital (ACBI) Downgraded by BidaskClub

BidaskClub cut shares of Atlantic Capital (NASDAQ:ACBI) from a strong-buy rating to a buy rating in a research note published on Saturday morning.

Several other analysts also recently issued reports on ACBI. Zacks Investment Research downgraded shares of Atlantic Capital from a buy rating to a hold rating in a research report on Monday, March 5th. Sandler O’Neill set a $19.00 price target on shares of Atlantic Capital and gave the company a hold rating in a research report on Wednesday, March 28th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus price target of $19.50.

Get Atlantic Capital alerts:

Shares of ACBI stock opened at $19.85 on Friday. The company has a market cap of $511.63 million, a PE ratio of 37.26 and a beta of 0.73. Atlantic Capital has a 52 week low of $15.20 and a 52 week high of $21.60. The company has a debt-to-equity ratio of 0.76, a current ratio of 0.96 and a quick ratio of 0.96.

Atlantic Capital (NASDAQ:ACBI) last announced its quarterly earnings data on Thursday, April 26th. The bank reported $0.19 EPS for the quarter, topping the consensus estimate of $0.18 by $0.01. The company had revenue of $25.60 million during the quarter, compared to the consensus estimate of $24.97 million. Atlantic Capital had a negative net margin of 1.65% and a positive return on equity of 4.92%. sell-side analysts expect that Atlantic Capital will post 0.98 earnings per share for the current fiscal year.

In other Atlantic Capital news, Director James H. Graves sold 16,000 shares of Atlantic Capital stock in a transaction on Wednesday, May 30th. The shares were sold at an average price of $20.93, for a total transaction of $334,880.00. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Kurt A. Shreiner sold 2,500 shares of Atlantic Capital stock in a transaction on Wednesday, May 2nd. The stock was sold at an average price of $19.42, for a total transaction of $48,550.00. The disclosure for this sale can be found here. In the last three months, insiders sold 23,420 shares of company stock valued at $487,452. 3.40% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. Gamco Investors INC. ET AL boosted its holdings in Atlantic Capital by 21.6% during the 1st quarter. Gamco Investors INC. ET AL now owns 97,845 shares of the bank’s stock worth $1,771,000 after acquiring an additional 17,365 shares during the last quarter. Goldman Sachs Group Inc. purchased a new position in Atlantic Capital during the 4th quarter worth $574,000. Two Sigma Advisers LP boosted its holdings in Atlantic Capital by 30.8% during the 4th quarter. Two Sigma Advisers LP now owns 64,900 shares of the bank’s stock worth $1,142,000 after acquiring an additional 15,300 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in Atlantic Capital by 12.5% during the 4th quarter. Bank of New York Mellon Corp now owns 1,392,698 shares of the bank’s stock worth $24,511,000 after acquiring an additional 154,831 shares during the last quarter. Finally, Monarch Partners Asset Management LLC purchased a new position in Atlantic Capital during the 1st quarter worth $542,000. 81.20% of the stock is currently owned by hedge funds and other institutional investors.

Atlantic Capital Company Profile

Atlantic Capital Bancshares, Inc operates as the holding company for Atlantic Capital Bank, N.A. that provides commercial banking products and services in the United States. The company offers NOW, money market, savings, checking, time, Internet and brokered, and demand deposits; working capital and equipment loans, loans supported by owner-occupied real estate, revolving lines of credit, term loans, letters of credit, installment and term loans, and home equity lines of credit; residential mortgage loans; and commercial real estate loans, including secured construction loans, secured mini-permanent loans, and secured or unsecured lines of credit.

Top Dividend Stocks To Watch For 2019

tags:NWBO,CRMT,CHKP,

Ameren (NYSE: AEE) and NorthWestern (NYSE:NWE) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Dividends

Get Ameren alerts:

Ameren pays an annual dividend of $1.83 per share and has a dividend yield of 3.1%. NorthWestern pays an annual dividend of $2.20 per share and has a dividend yield of 3.9%. Ameren pays out 64.7% of its earnings in the form of a dividend. NorthWestern pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ameren has raised its dividend for 4 consecutive years and NorthWestern has raised its dividend for 9 consecutive years. NorthWestern is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Top Dividend Stocks To Watch For 2019: Northwest Biotherapeutics, Inc.(NWBO)

Advisors' Opinion:

• [By ]

  The last time we left Northwest Biotherapeutics (OTC:NWBO), I stated in a fairly cautious article that there are persistent risks associated with an investment in this company. Back in November, I did not feel that the benefits outweighed the risks for this small cap equity.

• [By ]

  Northwest Biotherapeutics (OTC:NWBO) presented underwhelming preliminary data from a late-stage study of DCVax-L in brain cancer.

  Community Health Systems (NYSE:CYH) amended to extend the ��Early Tender Deadline�� and the ��Expiration Date�� for each Exchange Offer announced earlier.

Top Dividend Stocks To Watch For 2019: America's Car-Mart Inc.(CRMT)

Advisors' Opinion:

• [By Garrett Baldwin]

  Markets have been under pressure once again by the U.S. Federal Reserve. Inflation levels are going through the roof… but the people in charge of managing it have been lying to Americans for years. Now, it's time to get even.�Money Morning�Liquidity Specialist Lee Adler has the perfect way to make a lot of money when no one is looking.�Read it here.

  The Top Stock Market Stories for Monday Markets are cheering news that the supposed trade war between the United States and China is "on hold," according to U.S. Treasury Secretary Steven Mnuchin. Mnuchin and U.S. President Donald Trump's top economic advisor, Larry Kudlow, announced that both nations have reached an agreement, one that established a framework to help address ongoing trade imbalances between the two countries. The prices of crude oil is in focus after Venezuelan President Nicolas Maduro won reelection over the weekend. The election featured a very low turnout and a very large outcry that the vote was rigged. Maduro has a 75% disapproval rating and has been the face of the OPEC member's widespread mismanagement and economic collapse. Prior to the election, a member of the Trump administration said that the United States would not recognize the authenticity of the election. The United States is considering additional sanctions on Venezuela. Today is a major day for mergers and acquisition activity. Today, Blackstone Group LP�(NYSE: BX) announced plans to purchase U.S. hotel operator LaSalle Hotel Properties (NYSE: LHO) for a whopping $3.7 billion. The deal comes at a time that the travel industry is experiencing one of the best periods in a decade. If you're looking for a way to make money ahead of Memorial Day weekend, we show you how here. Four Stocks to Watch Today: GOOGL, GE, MBFI, FITB Alphabet Inc. (Nasdaq: GOOGL) is under pressure this morning after a harsh piece aired last night on "60 Minutes." The segment discussed the organization's power and influence. It also featured inter
• [By Dan Caplinger]

  Tuesday was down day on Wall Street, with major benchmarks losing a quarter percent or more. Market participants spent a lot of time watching the geopolitical situation, where a planned meeting between leaders of North Korea and the U.S. ran into possible hurdles. Yet there wasn't a really big response in some of the financial markets, with oil staying close to the $72-per-barrel mark and 10-year Treasury yields remaining above 3%. Some individual companies had good news that sent their shares higher, however. Micron Technology (NASDAQ:MU), Eldorado Gold (NYSE:EGO), and America's Car-Mart (NASDAQ:CRMT) were among the best performers on the day. Here's why they did so well.

• [By Max Byerly]

  Analysts expect that America’s Car-Mart, Inc. (NASDAQ:CRMT) will report sales of $158.22 million for the current quarter, according to Zacks Investment Research. Two analysts have provided estimates for America’s Car-Mart’s earnings. The highest sales estimate is $158.26 million and the lowest is $158.17 million. America’s Car-Mart posted sales of $152.92 million during the same quarter last year, which indicates a positive year over year growth rate of 3.5%. The company is scheduled to announce its next earnings results on Thursday, August 16th.

Top Dividend Stocks To Watch For 2019: Check Point Software Technologies Ltd.(CHKP)

Advisors' Opinion:

• [By Chris Lange]

  Check Point Software Technologies Ltd.��s (NASDAQ: CHKP) short interest increased to 10.59 million shares from the previous reading of 10.06 million. Shares were trading at $99.33, in a 52-week range of $93.76 to $119.20.

• [By Nicholas Rossolillo]

  Shares of cybersecurity outfit Check Point Software Technologies (NASDAQ:CHKP) have been underperforming for the past year. As cyberattacks have gained notoriety, lots of competition has cropped up and taken a bite out of the company's market share. Even with an attractive valuation, it may not be time yet for investors to double down on Check Point as the business gets serious about marketing new security tools.

• [By Chris Lange]

  Check Point Software Technologies Ltd.��s (NASDAQ: CHKP) short interest increased to 10.06 million shares from the previous reading of 9.31 million. Shares were trading at $96.41, in a 52-week range of $93.76 to $119.20.

• [By ]

  Check Point Software Technologies (Nasdaq: CHKP) plummeted 6.4% when it only slightly beat Q1 expectations but guided lower for the year. Cybersecurity has gotten more competitive recently, and the company reported a 12% increase in marketing expenses through the first quarter. That spooked investors on the potential for slower sales growth and weaker profitability.

• [By Joseph Griffin]

  Get a free copy of the Zacks research report on Check Point Software Technologies (CHKP)

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

Dropbox and Etsy Both Popped, but Only 1 Had a Reason

In this segment from�Motley Fool Money, host Chris Hill and analysts Jason Moser, Jeff Fischer, and Aaron Bush consider a couple of major movers of the past week.

Shares of cloud storage specialist Dropbox�(NASDAQ:DBX) rose 20% Thursday on heavy trading volume. The catalyst? Let's put it down to animal spirits.

Etsy�(NASDAQ:ETSY), meanwhile, gained 35% on the week, powered by improved guidance for the fiscal year. But will the business model change behind that updated outlook deliver, or might management's expectations be too high?

A full transcript follows the video.

This video was recorded on June 15, 2018.

Chris Hill: Dropbox, the cloud storage company, went public back in March. On Thursday, shares of Dropbox rose 20% on very high trading volume. Jason, there was no news, of any kind. What is going on here?

Jason Moser: That's correct. It doesn't appear, at least, there was any news regarding this. Trading volume through the roof on Thursday and Friday. It's very difficult to pinpoint exactly what the cause of this is. I think that's where investors need to take a step back here and think, "Do the business fundamentals beget this kind of move?" It's hard to say that they do. This seems to be something inexplicable, almost. That's where investors need to be very careful, because it can be very tempting to want to jump on the bandwagon when stocks start going through the roof like this.

There's a lot of interest, obviously, in these new IPOs. Dropbox is a fairly new company in the public markets. I think it's a fascinating business from a number of perspectives. I think a lot of us know it as consumers, that free little Dropbox app that we've been able to use. To me, this is not a business that I'd have any interest in investing in yet, at least. I think, with the most recent quarter, they've showed they're doing some good things. Paying users a total of 11.5 million vs. 9.3 million a year ago, and that's a big metric for them. I think they have a big opportunity to grow that paying user base in the enterprise side.

But, we are in a market environment today -- I mean, we've been talking about this for three years now -- it just seems like the valuations are through the roof, and Dropbox is no exception. Perhaps you want to get it on your watchlist, but be very careful buying into companies that aren't making any profits yet.

Jeff Fischer: So many interesting IPOs recently. By recently, I mean the last three years. So many of them are in cloud and storage and cloud software, mainly. I'm more drawn to cloud software than I am to storage. In a sense, Dropbox will meld and be some of both.

But, I agree with you, Jason. You have to be careful. Try to choose the companies that have competitive advantages that can sustain. I don't know where storage is going to go, price-wise. I would think down. Over time, the cost of storage should go lower and lower. It's more or less a commodity. That said, what we could all be doing, perhaps, is under-estimating the size of the storage market. It could be much larger than estimated.

Hill: Shares of Etsy up 35% this week after the online retailer raised guidance for the fiscal year. Etsy plans to increase the transaction fee that it charges the sellers on its platform. Do they have that kind of pricing power?

Aaron Bush: It seems like it. They're raising the transaction fee from 3.5% to 5%, and they're also going to initiate a 5% fee on shipping costs. That might not sound like a lot, but let's say I have a $100 item with $5 shipping. Before, that would have cost $3.50 in fees. Now, that would cost $5.25. That's actually a 50% increase in the fees that it would cause the seller, and that's pretty substantial. So, it is no surprise that the company is raising guidance, with their revenue growth being forecasted from mid-20% growth to mid-30% growth. It's a meaningful change.

Some might view this as a risk, because it could infuriate sellers, and they might want to move elsewhere. But to me, this is a sign of pricing power, and that they have solidified a brand and a lead in this niche part of e-commerce, and they have a pretty dominant two-sided network effect there.

Lastly, I'll just say, this isn't the first controversial move the new CEO has made in this space. Last year, when he first came in, he laid off 15% of employees. This is another step in him reorienting Etsy to be more of a business-first culture. So far, in a short amount of time, he's unlocked a decent amount of value.

Fischer: It's interesting, because it's kind of the opposite approach of Amazon. Amazon will charge its Marketplace sellers more money, but you don't necessarily see it come through to the customer. In this case, I would think a lot of these Etsy sellers would push these price increases through, because they're significant.

The Veterans Pension Benefit: What It Is and How to Get It

On Memorial Day, we honor those who gave their lives for our country, and we also recognize the service of millions of current and former members of the U.S. Armed Forces. Veterans are entitled to certain benefits as a result of their having served, including healthcare, education, home loans, insurance, and employment services.

One little-known benefit for veterans focuses on those former servicemembers who face financial hardship. The Veterans Pension Benefit provides modest amounts of regular monthly income for veterans who qualify, and it can make a big difference for those who are struggling to make ends meet.

Image source: Getty Images.

Who's eligible for the Veterans Pension Benefit?

The Veterans Pension Benefit is intended to help veterans and their families deal with financial difficulties. In order to qualify, a veteran usually needs to have served for at least 90 days in active duty status. Those who first entered active duty in September 1980 or later have a longer active duty requirement, as they must typically have served at least 24 months or the full period for which the service member was called or ordered to active duty.

In both cases, the veteran must have served at least one day during a wartime period. Those periods include the Gulf War, which began in August 1990 and hasn't yet had an ending date set, as well as Vietnam, Korea, and World Wars I and II.

In order to qualify for the Veterans Pension Benefit, you must generally be age 65 or older. Exceptions for younger veterans exist if you're totally and permanently disabled, receiving skilled nursing care in a nursing home or skilled nursing facility, or receiving Social Security Disability Insurance or Supplemental Security Income through the Social Security Administration.

How much is the Veterans Pension Benefit?

Calculating the Veterans Pension Benefit is fairly complicated, because the laws that govern the benefit establish annual maximum amounts and then require you to offset any financial resources you have against it. In particular, your pension benefit will generally be equal to the annual pension limit that Congress sets and the amount of income that gets counted against that limit.

The maximum annual pension amount is determined according to which of several categories you fall into. The table below gives the maximums and the categories effective as of Dec. 1, 2017.

Category

Maximum Annual Pension Rate

No spouse or child	$13,166
1 dependent	$17,241
Housebound with no dependents	$16,089
Housebound with 1 dependent	$20,166
No dependents but needs aid and assistance	$21,962
1 dependent and needs aid and assistance	$26,036
2 veterans married to each other	$17,241
2 married veterans with 1 housebound	$20,166
2 married veterans with both housebound	$23,087
2 married veterans with 1 needing aid and assistance	$26,036
2 married veterans, 1 needing aid and assistance and 1 housebound	$28,953
2 married veterans, both needing aid and assistance	$34,837

Data source: Veterans Administration.

In addition, those who served in World War I or the Mexican Border period in the 1910s are entitled to an additional $2,991 in income. You should also add $2,250 for each additional child.

Once you've determined the appropriate maximum benefit, you then need to come up with your countable income. This figure includes income from most sources, including work earnings, disability and retirement payments, investment income, and money you make from a farm or business. The amount of your pension will generally be the maximum benefit minus your countable income. So if you have no spouse or child and have $10,000 in income, then your pension would be $13,166 minus $10,000 or $3,166 per year, paid in 12 monthly installments.

You're allowed in some cases to offset unreimbursed medical expenses against your countable income in order to raise the amount of your Veterans Pension. In order to be deducted, unreimbursed medical expenses must exceed 5% of the pension rate in the table above.

Will outside assets take away my Veterans Pension?

There's also an asset test that prevents those who have ample financial resources from taking advantage of the Veterans Pension program. In general, if the Veterans Administration determines that you could live off money in bank accounts or proceeds from stocks, bonds, mutual funds, annuities, and any property other than your personal residence, then it can deny benefits. There's no hard-and-fast rule for how much of a net worth is too high, and there's substantial discretion given to the administrative personnel at the VA in making the final determination.

How do I apply for my Veterans Pension?

To apply, you can go to the VA's online application here. Alternatively, you can complete VA Form 21P-527EZ and either mail it to the pension management center that serves veterans in the state where you live, or you can visit your local regional benefit office in person to turn in your application. For details on where the nearest office is, you can use the VA's facility locator, accessible on the VA website for pension benefits.

Get the benefits you deserve

If you've served in the military, you've earned the respect and recognition that Americans give you on Memorial Day. Learning about the Veterans Pension Benefit and other benefits available to servicemembers is important in order to allow the country to recognize your service with honor and dignity.

SAP SE (SAP) Stake Lessened by Mondrian Investment Partners LTD

Mondrian Investment Partners LTD trimmed its position in shares of SAP SE (NYSE:SAP) by 9.3% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 362,866 shares of the software maker’s stock after selling 37,000 shares during the quarter. Mondrian Investment Partners LTD’s holdings in SAP were worth $40,216,000 at the end of the most recent quarter.

Several other institutional investors have also recently modified their holdings of SAP. Wells Fargo & Company MN increased its stake in shares of SAP by 27.9% during the first quarter. Wells Fargo & Company MN now owns 1,218,224 shares of the software maker’s stock worth $128,109,000 after acquiring an additional 265,462 shares during the period. JPMorgan Chase & Co. grew its position in SAP by 244.7% during the first quarter. JPMorgan Chase & Co. now owns 340,357 shares of the software maker’s stock worth $35,792,000 after buying an additional 241,605 shares during the period. Sustainable Growth Advisers LP grew its position in SAP by 6.0% during the first quarter. Sustainable Growth Advisers LP now owns 3,099,490 shares of the software maker’s stock worth $325,943,000 after buying an additional 176,456 shares during the period. WINTON GROUP Ltd acquired a new position in SAP during the fourth quarter worth about $15,504,000. Finally, First Trust Advisors LP grew its position in SAP by 21.3% during the fourth quarter. First Trust Advisors LP now owns 595,675 shares of the software maker’s stock worth $66,930,000 after buying an additional 104,479 shares during the period. Institutional investors and hedge funds own 10.75% of the company’s stock.

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Several research analysts have weighed in on the stock. ValuEngine lowered shares of SAP from a “buy” rating to a “hold” rating in a research report on Tuesday, May 22nd. Barclays upped their target price on shares of SAP from $132.00 to $134.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 25th. Royal Bank of Canada restated a “neutral” rating and set a target price on shares of SAP in a research report on Tuesday, April 24th. BMO Capital Markets restated a “hold” rating and set a $116.00 target price on shares of SAP in a research report on Wednesday, January 31st. Finally, Stifel Nicolaus restated a “sell” rating and set a $74.00 target price (down from $80.00) on shares of SAP in a research report on Thursday, March 1st. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $110.80.

SAP stock opened at $114.03 on Friday. The company has a market capitalization of $140.09 billion, a PE ratio of 26.58, a price-to-earnings-growth ratio of 3.45 and a beta of 1.12. SAP SE has a 12 month low of $99.20 and a 12 month high of $116.90. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.25.

SAP (NYSE:SAP) last released its quarterly earnings results on Tuesday, April 24th. The software maker reported $0.82 EPS for the quarter, beating the consensus estimate of $0.57 by $0.25. The business had revenue of $5.26 billion for the quarter, compared to analyst estimates of $5.30 billion. SAP had a net margin of 18.00% and a return on equity of 18.33%. The company’s quarterly revenue was down .5% on a year-over-year basis. During the same period in the prior year, the business earned $0.73 earnings per share. equities analysts anticipate that SAP SE will post 4.59 EPS for the current fiscal year.

The firm also recently declared an annual dividend, which will be paid on Tuesday, May 29th. Stockholders of record on Monday, May 21st will be given a $1.7271 dividend. The ex-dividend date is Friday, May 18th. This is a positive change from SAP’s previous annual dividend of $1.33. This represents a dividend yield of 1.6%. SAP’s dividend payout ratio is currently 27.74%.

SAP Profile

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. It offers SAP HANA, which enables businesses to process and analyze live data; SAP Data Hub, a solution that enables businesses to manage data from various sources; SAP Cloud Platform, which enables businesses to connect and integrate applications; SAP BW/4HANA, a data warehouse solution; SAP Leonardo, a system that enables customers to make business sense and opportunity of disruptive technologies; and SAP Analytics Cloud, which leverages the intersection of business intelligence, planning, and predictive analytics.

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Bayer to Win U.S. Antitrust Nod for Monsanto Deal Next Week

Bayer AG is set to win U.S. antitrust approval for its $66 billion takeover of Monsanto Co. by next week, according to a person familiar with the matter, removing the last major regulatory hurdle to forming the world’s biggest seed and agricultural-chemicals company.

The companies and the Justice Department have negotiated a complex agreement that would resolve the government’s concerns that the merger as initially structured would harm competition, said the person, who asked not to be named because the matter is private. The deal could be announced as soon as Tuesday following months of negotiations.

The German company’s agreement to buy Monsanto, announced two years ago, is one of several deals involving seed and crop-chemical firms around the world. Last year, U.S. and EU regulators approved Dow Chemical Co.’s merger with DuPont Co. and China National Chemical Corp.’s takeover of Syngenta AG. The wave of transactions is set to create three industry behemoths, sparking concern among some farmers about higher prices and less choice.

St. Louis-based Monsanto rose 1.2 percent to $126.90 at 1:46 p.m. in New York.

Representatives for Bayer, Monsanto and the Justice Department declined to comment. The timing of the announcement was reported earlier by MLex. Bayer Chief Executive Officer Werner Baumann said Friday the company expects to close "in the near future."

The settlement is coming together after Justice Department antitrust officials, led by Assistant Attorney General Makan Delrahim, had raised concerns about Bayer’s plan to sell assets to BASF SE to address competition problems, and wanted to see additional divestitures.

— With assistance by Naomi Kresge

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Analysts Expect Acadia Healthcare Company Inc (ACHC) Will Announce Earnings of $0.70 Per Share

Brokerages forecast that Acadia Healthcare Company Inc (NASDAQ:ACHC) will announce $0.70 earnings per share for the current fiscal quarter, Zacks reports. Seven analysts have issued estimates for Acadia Healthcare’s earnings. The highest EPS estimate is $0.77 and the lowest is $0.68. Acadia Healthcare reported earnings per share of $0.66 in the same quarter last year, which would suggest a positive year over year growth rate of 6.1%. The company is scheduled to announce its next earnings results on Thursday, July 26th.

According to Zacks, analysts expect that Acadia Healthcare will report full year earnings of $2.58 per share for the current year, with EPS estimates ranging from $2.44 to $2.62. For the next year, analysts forecast that the company will report earnings of $2.82 per share, with EPS estimates ranging from $2.61 to $3.00. Zacks Investment Research’s earnings per share averages are an average based on a survey of analysts that follow Acadia Healthcare.

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Acadia Healthcare (NASDAQ:ACHC) last released its quarterly earnings results on Tuesday, May 1st. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.04. Acadia Healthcare had a net margin of 7.34% and a return on equity of 7.99%. The firm had revenue of $742.20 million during the quarter, compared to analyst estimates of $727.64 million. During the same quarter last year, the business earned $0.46 EPS. The company’s revenue was up 9.3% compared to the same quarter last year.

Several research analysts have issued reports on the stock. Zacks Investment Research upgraded shares of Acadia Healthcare from a “sell” rating to a “hold” rating in a report on Monday, February 12th. ValuEngine lowered shares of Acadia Healthcare from a “hold” rating to a “sell” rating in a report on Saturday, April 7th. BMO Capital Markets restated an “outperform” rating and set a $45.00 price target (up previously from $40.00) on shares of Acadia Healthcare in a report on Friday, February 23rd. BidaskClub upgraded shares of Acadia Healthcare from a “hold” rating to a “buy” rating in a report on Thursday, February 22nd. Finally, Robert W. Baird set a $42.00 price target on shares of Acadia Healthcare and gave the stock a “hold” rating in a report on Thursday, February 22nd. One analyst has rated the stock with a sell rating, five have assigned a hold rating and twelve have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average target price of $44.50.

In related news, Director Reeve B. Waud sold 200,000 shares of Acadia Healthcare stock in a transaction on Tuesday, March 6th. The shares were sold at an average price of $39.02, for a total value of $7,804,000.00. Following the completion of the sale, the director now owns 10,088 shares of the company’s stock, valued at approximately $393,633.76. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Randall P. Goldberg sold 960 shares of Acadia Healthcare stock in a transaction on Thursday, March 1st. The shares were sold at an average price of $38.47, for a total transaction of $36,931.20. Following the completion of the sale, the vice president now directly owns 6,942 shares of the company’s stock, valued at approximately $267,058.74. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 401,360 shares of company stock valued at $15,759,096. Insiders own 11.10% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. grew its position in Acadia Healthcare by 0.9% in the 1st quarter. BlackRock Inc. now owns 10,125,714 shares of the company’s stock valued at $396,726,000 after purchasing an additional 91,981 shares during the period. Aristotle Capital Management LLC grew its position in Acadia Healthcare by 7.4% in the 1st quarter. Aristotle Capital Management LLC now owns 6,638,790 shares of the company’s stock valued at $260,108,000 after purchasing an additional 454,924 shares during the period. Dimensional Fund Advisors LP grew its position in Acadia Healthcare by 41.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,031,525 shares of the company’s stock valued at $157,955,000 after purchasing an additional 1,178,151 shares during the period. P2 Capital Partners LLC grew its position in Acadia Healthcare by 14.5% in the 1st quarter. P2 Capital Partners LLC now owns 3,350,000 shares of the company’s stock valued at $131,253,000 after purchasing an additional 425,000 shares during the period. Finally, Bank of New York Mellon Corp grew its position in Acadia Healthcare by 6.8% in the 4th quarter. Bank of New York Mellon Corp now owns 1,379,499 shares of the company’s stock valued at $45,013,000 after purchasing an additional 87,260 shares during the period.

Acadia Healthcare stock traded down $0.25 during mid-day trading on Friday, hitting $42.01. 736,675 shares of the stock were exchanged, compared to its average volume of 1,160,284. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.29 and a current ratio of 1.29. Acadia Healthcare has a 12 month low of $26.92 and a 12 month high of $54.34. The firm has a market cap of $3.73 billion, a price-to-earnings ratio of 18.27, a PEG ratio of 1.30 and a beta of 0.64.

Acadia Healthcare Company Profile

Acadia Healthcare Company, Inc develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and outpatient behavioral healthcare facilities to serve the behavioral health and recovery needs of communities. The company operates acute inpatient psychiatric facilities, which offer evaluation and crisis stabilization of patients with severe psychiatric diagnoses; specialty treatment facilities, including residential recovery facilities, eating disorder facilities, and comprehensive treatment centers that provide continuum care for adults with addictive disorders and co-occurring mental disorders; and residential treatment centers, which treat patients with behavioral disorders in a non-hospital setting, including outdoor programs.

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Why These Auto Parts Stocks Are Seeing a Rising Tide

Advance Auto Parts Inc. (NYSE: AAP) and AutoZone Inc. (NYSE: AZO) each saw shares make a handy gain early on Tuesday. These companies have reported their most recent quarterly results, and while each had somewhat mixed reports, the overall outcome was good enough to give the shares a nice bump.

When Advance Auto Parts released its first-quarter financial results before the markets opened on Tuesday, the company said that it had $2.10 in earnings per share (EPS) on $2.87 billion in revenue. That compared with consensus estimates from Thomson Reuters of $1.97 in EPS on revenue of $2.91 billion. The same period of last year reportedly had EPS of $1.60 and $2.89 billion in revenue.

Total net sales for the first quarter decreased 0.6% from the prior-year period, and comparable store sales decreased 0.8% as well.

As a result of the recently signed Tax Cut and Jobs Act, which lowered the federal tax rate, the company’s effective tax rate in the first quarter was 24.5%, compared to 35.0% in the prior-year first quarter.

Shares of Advance Auto Parts closed trading at $119.15 Monday, with a consensus analyst price target of $119.72 and a 52-week trading range of $78.81 to $143.83. Following the announcement, the stock was up about 2.5% at $122.20 in early trading indications Tuesday.

AutoZone also shared its fiscal third-quarter earnings report before the markets opened on Tuesday. The auto parts retailer posted $13.42 in EPS on $2.66 billion in revenue, while consensus forecast had called for $13.01 in EPS on revenue of $2.72 billion. In the same period of last year, the company said it had EPS of $11.44 and $2.62 billion in revenue.

During the quarter, domestic same same-store increased 0.6%, while total sales increased by 1.6%.�Also in this time, AutoZone opened 26 new stores and relocated two stores in the United States, and it opened four new stores in Mexico.

Bill Rhodes, board chair, president and CEO, commented on the report:

Our ongoing initiatives, which include enhanced inventory availability, further commercial acceleration and new omni-channel selling initiatives, continue to gain traction as we roll them further across our chain.� As we continue to invest in our business, we remain committed to our disciplined approach of increasing operating earnings and cash flow, and utilizing our balance sheet and capital effectively.

Shares of AutoZone closed Monday at $665.09. The consensus price target is $777.00, and the 52-week range is $491.13 to $797.89. Following the announcement, the stock was up 2.4% at $681.00 in early trading indications Tuesday.

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