U.S. markets close in 6 hours 6 minutes

  • S&P 500

    3,626.26
    -9.15 (-0.25%)
     

  • Dow 30

    29,882.99
    -163.25 (-0.54%)
     

  • Nasdaq

    12,069.63
    +32.85 (+0.27%)
     

  • Russell 2000

    1,841.36
    -12.17 (-0.66%)
     

  • Crude Oil

    45.45
    +0.54 (+1.20%)
     

  • Gold

    1,814.30
    +9.70 (+0.54%)
     

  • Silver

    23.50
    +0.20 (+0.86%)
     

  • EUR/USD

    1.1913
    +0.0017 (+0.14%)
     

  • 10-Yr Bond

    0.8700
    -0.0120 (-1.36%)
     

  • GBP/USD

    1.3362
    +0.0004 (+0.03%)
     

  • USD/JPY

    104.2900
    -0.1900 (-0.18%)
     

  • BTC-USD

    19,210.86
    -55.78 (-0.29%)
     

  • CMC Crypto 200

    380.72
    +10.20 (+2.75%)
     

  • FTSE 100

    6,396.46
    -35.71 (-0.56%)
     

  • Nikkei 225

    26,296.86
    +131.27 (+0.50%)
     
JUST IN:

Another 778,000 Americans filed new unemployment claims last week

More people filed than expected as COVID-19 cases continue to surge

ROCE Insights For Gevo

Benzinga Insights
·1 min read

During Q3, Gevo's (NASDAQ: GEVO) reported sales totaled $192.00 thousand. Despite a 16.09% in earnings, the company posted a loss of $6.10 million. In Q2, Gevo brought in $988.00 thousand in sales but lost $5.26 million in earnings.

What Is Return On Capital Employed?

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q3, Gevo posted an ROCE of -0.05%.

Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

View more earnings on GEVO

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

For Gevo, the return on capital employed ratio shows the current amount of assets may not actually be helping the company achieve higher returns, a note many investors will take into account when making long-term financial decisions.

Q3 Earnings Insight

Gevo reported Q3 earnings per share at $-0.08/share, which beat analyst predictions of $-0.1/share.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Latest Stories

  • 8 Stocks Warren Buffett Just Bought

    Warren Buffett is scooping up stocks. Berkshire Hathaway (ticker: BRK.A, BRK.B) CEO Warren Buffett may be the most popular and successful investor in history, and Berkshire's 13-F is the most anticipated filing on Wall Street each quarter. Here are eight stocks Warren Buffett has been buying.

  • Shopping for a new car on Black Friday? Beware of this clever car-dealership trick

    Timothy Vogus, a professor at Vanderbilt University’s Owen Graduate School of Management, reveals the 'biggest thing people do wrong' when walking into a showroom.

  • I’m 65, have $500,000 in cash, no ‘impressive’ work résumé and am terrified of investing — can I retire?

    Now the bad news:  – Other than anticipated Social Security (approximately $1,300/month if I wait until full retirement age, $1,200/month if I retire at 65), I have no pension or other income streams. – I don’t have an impressive work résumé that could lead to lucrative employment in retirement. Is there some way I can make $500,000 in savings last, especially given the abysmally low interest rate environment?

  • Biden Tax Plan: Who Gets The Cuts, Who Gets The Hikes

    To flesh out Biden's tax plan, the Tax Policy Center (TPC) analyzed the many separate things that have been said about how tax rules would change.

  • Only these five dividend stocks made the cut in a ‘safer and better’ screen

    In May 2019, two veteran money managers shared their philosophy with MarketWatch readers that investors shouldn’t be overly focused on the highest dividend yields when selecting stocks for income. The original article featured comments from Mike Loewengart, who is now the managing director of investment strategy at E-Trade (which was acquired by Morgan Stanley in October) and Lewis Altfest, president of Altfest Personal Wealth Management, which manages about $1.4 billion for private clients in New York. Loewengart believes that a good approach for income-seeking investors is to focus on total return rather than dividend yield.

  • Nikola's stock tumbles to put record 8-day win streak in danger

    Shares of Nikola Corp. dropped 16.1% in premarket trading Wednesday, putting them on track to snap a record eight-day win streak in which the electric truck maker's stock rocketed 76.3%. In an interview late Tuesday on CNBC's "Mad Money with Jim Cramer," Chief Executive Mark Russell did not reassure investors that partnership with General Motors Corp. announced in September, which included GM receiving a $2 billion stake in Nikola, would still go through, as CNBC reported. Also in the interview, Russell said he could not comment on what Founder Trevor Milton, who resigned from the company in September, would do with 92.2 million shares of the Nikola common stock he owned when the lock-up expires on Dec. 1, although many other insiders have agreed to extend their lock-up agreements through April 30, 2021. In total, 161 million shares, or roughly 42% of the common stock outstanding, will become eligible for sale on Dec. 1 as lock-up agreements expire. Nikola's stock selloff Wednesday comes as shares of other electric vehicle makers are pulling back ahead of the open, with Tesla Inc. down 1.5%, Nio Inc. shedding 8.8% and Workhorse Group Inc. sliding 9.4%. Meanwhile, futures for the Nasdaq 100 are up 0.1% ahead of the open and S&P 500 futures are down 0.1%.

  • Billionaire Steven Cohen Pulls the Trigger on These 2 Penny Stocks

    Which stocks are either a fan favorite or a must-avoid? Penny stocks. These tickers going for less than $5 apiece are particularly divisive on Wall Street, with those in favor as well as the naysayers laying out strong arguments.These names are too appealing for the risk-tolerant investor to ignore. Given the low prices, you get more for your money. On top of this, even minor share price appreciation can translate to massive percentage gains, and thus, major returns for investors.However, there is a but here. The critics point out that there could be a reason for the bargain price tag, whether it be poor fundamentals or overpowering headwinds.So, how are investors supposed to determine which penny stocks are poised to make it big? Following the activity of the investing titans is one strategy.Enter billionaire Steven Cohen. The legendary stock picker, who began his investing career at Gruntal & Co. where he managed proprietary capital for 14 years, founded S.A.C Capital Advisors in 1992. In 2014, his investment operations were converted to Point72 Asset Management, a 1,500-plus person registered investment advising firm. Throughout his career, Cohen has consistently delivered huge returns to clients, giving the Point72 Chairman, CEO and President guru-like status on the Street.Turning to Cohen for inspiration, we took a closer look at three penny stocks Cohen’s Point72 made moves on recently. Using TipRanks’ database to find out what the analyst community has to say, we learned that each ticker boasts Buy ratings and massive upside potential.Cocrystal Pharma (COCP)Working to bring targeted solutions to market, Cocrystal Pharma develops antiviral therapeutics for the treatment of serious or chronic viral diseases including influenza, hepatitis C, gastroenteritis caused by norovirus, as well as COVID-19. Based on the progress of its pipeline and $0.84 share price, some see significant gains in COCP’s future.Cohen is among those that have high hopes for this healthcare name. Pulling the trigger on COCP for the first time, Point72 purchased more than 2.8 million shares. The value of the firm’s new holding comes in at over $2.5 million.Meanwhile, 5-star analyst Raghuram Selvaraju, of H.C. Wainwright, tells clients to focus on COCP’s achievements over the last few months. In August, preclinical animal studies of coronavirus antiviral compounds, which constituted possible development candidates for the company, were published in the medical journal, Science Translational Medicine.It should be noted that as per license agreements with Kansas State University Research Foundation (KSURF), COCP has an exclusive, royalty-bearing right and license to certain antiviral compounds for humans and small molecule inhibitors against coronaviruses, picornaviruses and caliciviruses covered by patent rights controlled by KSURF. According to Selvaraju, the company wants to continue developing these compounds as treatments for coronavirus-related infections.On top of this, last month, Cocrystal released promising in vitro and seven-day toxicity data for its influenza A preclinical lead molecule, CC-42344, which is being evaluated in (IND)-enabling studies as a possible treatment for seasonal and pandemic influenza strain A. Management expects to wrap up the IND-enabling studies and the candidate to enter clinical trials in 2021.Looking more closely at CC-42344, Selvaraju points out that it is a “potent, broad spectrum inhibitor of the influenza replication enzyme targeting the PB2 subunit, and has strong synergistic effects when combined with approved influenza antiviral drugs including Tamiflu (oseltamivir) and Xofluza (baloxavir).” He argues that as recent data demonstrates the drug retained single-digit nanomolar potency against baloxavir-resistant influenza A strain, it could “facilitate demonstration of CC-42344's superiority when seeking FDA approval.”To this end, Selvaraju rates COCP a Buy along with a $4.50 price target. Should this target be met, a 417% upside potential could be in store. (To watch Selvaraju’s track record, click here)Overall, 2 Buys and no Holds or Sells have been assigned in the last three months. Therefore, the analyst consensus is a Moderate Buy. At $4.75, the average price target puts the upside potential at 452%. (See COCP stock analysis on TipRanks)DiaMedica Therapeutics (DMAC)Using its patented and licensed technologies, DiaMedica Therapeutics develops novel recombinant proteins to treat kidney and neurological diseases. Currently going for $4.3 apiece, this name has scored significant praise recently.Also reflecting a new position for Cohen’s firm, Point72 bought up 800,000 shares in the third quarter, with the value of the holding landing at $3.4 million.Writing for Guggenheim, 5-star analyst Etzer Darout points out that company’s lead drug, DM199, a synthetic Kallikrein-1 (KLK1) replacement therapy designed for patients with chronic kidney disease (CKD) and acute ischemic stroke (AIS), is a key component of his bullish thesis. According to the analyst, early clinical data on DM199 in U.S. patients as well as porcine and human urinary-derived KLK1 in Asia serve as “clinical evidence of the role of KLK1 therapy and the potential for DM199 as a potentially differentiated therapy in CKD and stroke.”Going forward, the analyst believes the next clinical milestone for the therapy is proof-of-concept data in three CKD populations: patients with Immunoglobulin A Nephropathy (IgAN), hypertensive African Americans with APOL1 gene mutations (APOL1 HT AAs) and patients with diabetic kidney disease (DKD). That said, the main value driver is IgAN, in Darout’s opinion.“Competitor programs advancing in IgAN have demonstrated improvements in proteinuria with stable eGFR, two key markers of kidney function. However, early clinical experience suggests that DM199 has the potential to improve both eGFR and proteinuria which would be a significant upside case to our assumptions. If DM199 can demonstrate a ~25%-plus decrease in proteinuria and increase in eGFR (which early data suggests is achievable), it would increase our confidence that DM199 could become the standard of care across CKD indications beyond what we currently model,” Darout explained.Looking at the market opportunity, there are roughly 690,000 strokes in the U.S. per year (1.1 million strokes in the EU), of which, 87% are deemed ischemic strokes, says the American Heart Association (AHA). Additionally, in the U.S., 90% of acute ischemic stroke patients receive palliative care.Based on Darout’s estimates, if half of patients on palliative care are treated with DM199, AIS could be a $3-$5 billion opportunity for DMAC in the U.S.It should come as no surprise, then, that Darout stayed with the bulls. In addition to a Buy rating, he left a $16 price target on the stock. Investors could be pocketing a gain of 277%, should this target be met in the twelve months ahead. (To watch Darout’s track record, click here)What do other analysts have to say? 2 Buys and no Holds or Sells add up to a Moderate Buy analyst consensus. Given the $15 average price target, shares could soar 253% in the next year. (See DMAC stock analysis on TipRanks)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

  • Nikola (NKLA) Buyers Trapped in Overnight Reversal

    Nikola (NKLA) stock is trading lower by 15% in Wednesday's pre-market, giving up Tuesday's 17% advance.

  • What a Treasury Secretary Janet Yellen would mean for markets

    What would a Treasury Secretary Janet Yellen mean for stimulus, Fed policy, bank regulation and bitcoin?

  • 4 Energy Companies Pumping Out Cash for Dividends

    Investors are concerned that major oil companies like ExxonMobil aren’t making enough to fund their dividends in a sustainable way.

  • 9 Stocks Seen Propelling Dow To 31,662

    Dow 30,000 is great. But a Dow Jones at 31,659 is even better — and that's where the Blue Chip average is headed in 12 months, analysts say.

  • Bank of America Jolts Traders With Flat Bonus Pool in Omen for Wall Street

    (Bloomberg) -- Bank of America Corp.’s leaders are planning year-end bonuses that break with Wall Street traders’ hopes for hefty raises after a record-setting run.Senior executives are floating plans to keep the bonus pool for sales and trading at last year’s level, despite a 20% jump in revenue during the first nine months of this year, according to people briefed on the talks who spoke on the condition of anonymity. The process is still in an early stage and will go through rounds of negotiation and approvals.The bank’s leadership is weighing rewards against the strains of a pandemic that’s dragged on the consumer division and added expenses. But the restraint already is triggering outrage among staff who expected to be paid handsomely for a banner year. Executives still have time to lobby for larger payouts to top-performing desks, and may indeed wrangle more money, some of the people said. But even then, increases will probably be modest.A company spokesman declined to comment.The tensions inside Bank of America offer a window into conversations likely to unfold in coming weeks across Wall Street, where major banks pay close attention to rivals’ compensation decisions when setting their own payouts. Legions of traders have been hoping to share the spoils from 2020’s wild markets, in which the pandemic and U.S. politics repeatedly set off gushers of client orders.But industry leaders are contending with broader problems, including losses on loans, the possibility that the trading windfall won’t last and the optics of handing out wads of cash to well-paid staff in a time of economic misery.Tempering ExpectationsAmong Wall Street’s chief executive officers, Bank of America’s Brian Moynihan is especially familiar with shifting political winds after rebuilding the company’s battered businesses and reputation in the aftermath of the 2008 crisis. In recent years, he’s publicly embraced stronger environmental, social and governance standards. Now, he’s steering the firm into the ascendancy of a Democratic administration under President-elect Joe Biden.The investment bank’s final bonus decisions will be shaped by how the fourth quarter pans out, the people said. But already, the initial talks are prompting senior managers to temper expectations as they approach year-end meetings with subordinates.In an unusual Sunday briefing, a manager in the fixed-income division informed members of his group that they should prepare for bonuses that are, at best, flat.Until now, the tone on Wall Street had been more optimistic, with some compensation consultants predicting generous raises. Earlier this month, a closely watched survey by Johnson Associates Inc. estimated equity traders could see bonuses jump by about 25%, while bond traders would watch theirs soar 45% or more.Rivals WatchingThe deliberations at Bank of America, one of the industry’s largest employers, will make it easier for rivals to stop far short of such dramatic increases, even if they do grant raises.While Bank of America’s stock-trading operations had a record first quarter, they’ve also experienced bumps this year. In a second-quarter regulatory filing, the bank flagged “weaker trading performance” in the unit’s derivatives business, where people familiar with the matter said it lost more than $100 million on some positions outside the U.S.The division has also seen personnel shake-ups, culminating with the October announcement that longtime stocks chief Fab Gallo would step down and depart.Revenue from the bank’s fixed-income trading division rose almost 22% in the first nine months of the year. The former co-head of that business, Jim DeMare, was promoted in July to lead global sales and trading.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Unusually Large Nio Option Traders Bet Big On More Upside

    Nio Inc - ADR (NYSE: NIO) shares are up 2,610% over the last year, and some large option traders are betting the Nio rally still has legs.The Nio Trades: On Tuesday, Benzinga Pro subscribers received dozens of option alerts related to unusually large Nio trades Here are a handful of the largest: * At 10:49 a.m., a trader bought 205 Nio call options with a $20 strike price expiring on Feb. 10 near the ask price at $34.83. The trade represented a $714,015 bullish bet. * At 10:55 a.m., a trader sold 306 Nio put options with a $75 strike price expiring on Dec. 18 near the bid price at $22.25. The trade represented a $680,941 bullish bet. * At 11:01 a.m., a trader bought 300 Nio call options with a $40 strike price expiring on Feb. 19 at the ask price of $19.50. The trade represented a $585,000 bullish bet. * At 11:21 a.m., a trader sold 481 Nio put options with a $55 strike price expiring on Apr. 16 near the bid price at $55. The trade represented a $726,358 bullish bet.Related Link: Citron Says It's 'Insulting' To Call Blink Charging An EV StockWhy It's Important For Nio Investors: Even traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader.Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there's no surefire way to determine if an options trade is a standalone position or a hedge.In this case, given the relatively large size of the largest trades on Tuesday, they could certainly be institutional hedges.Nio's Big Move: Nio shares are up 14% in the last week as buying enthusiasm for EV stocks continues to drive share prices higher. The bullish trading action comes despite warnings from former Nio bull and Citron Research editor Andrew Left earlier this month.Left compared Nio to Tesla Inc (NASDAQ: TSLA) back in November 2018 when Nio was trading at just $7 per share. However, on Nov. 13, Left said Nio investors need to be cashing out after the stock's historic run."After a rocky road of trading, NIO has found itself in unchartered territory that can never be justified by its current standing in the China EV market or its near-term prospects," Left wrote.Nio reported 5,055 vehicle deliveries in October, up 100.1% compared to a year ago. Nio reported a $1.1-billion net income loss in the third quarter earlier this month. Nio's revenue was up 146% in the quarter to $4.53 billion, and the stock's market cap now stands at $72.5 billion. NIO Chart by TradingView new TradingView.widget( { "width": 680, "height": 423, "symbol": "NYSE:NIO", "interval": "D", "timezone": "Etc/UTC", "theme": "light", "style": "1", "locale": "en", "toolbar_bg": "f1f3f6", "enable_publishing": false, "allow_symbol_change": true, "container_id": "tradingview_5bd9a" } ); Benzinga's Take: When a stock like Nio gets caught in a wave of "irrational exuberance," arguments about valuation and fundamentals like the ones Left made are totally irrelevant in the near-term.Nio's largest option traders on Tuesday appear to be betting that the stock's bullish momentum will continue in coming months, while longer-term investors are likely looking to avoid the potential downside once the stock finally runs out of gas.Photo courtesy of Nio. See more from Benzinga * Click here for options trades from Benzinga * Citron Says It's 'Insulting' To Call Blink Charging An EV Stock * Citron Pulls Plug On Nio, Says Valuation 'Can Never Be Justified'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Dow Jones Today Dips, Nasdaq Climbs As Jobless Claims Jump; Nikola Worries, China Investigation Hammers E-Auto Stocks

    Nikola led a sell-off among electric auto stocks, and Microsoft topped the Dow Jones today, as stock futures were mixed after a jump in jobless claims data.

  • J.P. Morgan: 2 Stocks to Consider Buying (and 1 to Stay Away From)

    In a report on current market conditions – and the strategic view going forward – JPMorgan’s Marko Kolanovic sees plenty of reasons for optimism. Kolanovic sees that risk has eased in the last few weeks, and taking the usual daily fluctuations into account, markets are likely to see a sustained rally.The biggest news, in Kolanovic’s view, are the positive reports about the rapid development and imminent availability of a COVID-19 vaccine. This is a ‘game-changer,’ allowing investors to “look through the recent surge in COVID-19 cases to the impending end of the pandemic and broader reopening of the economy.”In a close second, as far as market importance is concerned, is the split result of the national election. Kolanovic describes a Biden Presidency combined with increased Republican strength in the House and a continued Republican Senate majority as ‘the best of both worlds.’ A divided government is unlikely to dismantle the pro-business moves taken by the Trump Administration, while Biden is likely to ease the trade war. The result, according to the Kolanovic team, will be “less market volatility, which could drive inflows to risk assets.”To this end, JPM’s stock analysts have been busy scanning the tickers, seeking out those that are likely to win – or lose – in the coming months. Of particular interest, we’ve pulled the TipRanks data on two stocks that the firm predicts will show double-digit growth, and one that JPM says to avoid. Vroom, Inc. (VRM)We’ll start with Vroom, an online retailer in the used vehicle space. In addition to cars, the company also sells spare parts and accessories, and offers insurance, car rentals, and funding for purchases, for US customers only.Vroom is a newcomer in the markets; it IPO’d in June and rose quickly, peaking in on September 1. Since then, the shares have slipped and are now down 22% since their first day’s close. The rise and fall are the result of conflicting tailwinds and headwinds pushing against the stock.On the positive side, Vroom has gained during the general shift to online retail. Also, the company’s focus on used vehicles was beneficial during the pandemic, when customers were nervous or cash-strapped – but in either case, reluctant to lay out large sums for a new car. On the negative side of the ledger, that reluctance to spend slipped over to the used car market, too. Vroom had to contend with low margins while cutting prices to attract sales.Covering the stock for JPM, analyst Rajat Gupta sees the stock’s current state as an opportunity for investors. The bad times are likely temporary, he believes, and this company is set to take off. “Net-net, with near-term expectations now reset and potential for acceleration in both unit growth and gross profit into 2021, we view the setup as favorable in the near to medium term for the stock with little incremental negative catalysts… we believe execution will be key given heavy reliance on third parties for key operational aspects such as reconditioning and logistics,” Gupta wrote.In line with this assessment, Gupta rates the stock an Overweight (i.e. Buy), and his $70 price target implies an upside of 91% for the year ahead. (To watch Gupta’s track record, click here)Even after the fall in its share value, Vroom retains a Strong Buy from the analyst consensus. The rating is based on 11 reviews, including 10 Buys and 1 Sell. VRM is selling for $36.81, and its $59.40 average price target suggests it has room for ~61% growth on the one-year horizon. (See VRM stock analysis on TipRanks)Colfax Corporation (CFX)Next up is Colfax, a niche manufacturing company. Colfax produces a range of equipment for the welding, medical device, and air and gas handling markets, ranging from medical equipment for joint reconstruction to welding helmets and cutting torches. While it may sound incongruous, the combination works for Colfax, and the company is experiencing a turnaround from corona crisis losses in 2Q20.The third quarter earnings, at 41 cents per share, showed both good and bad. It was down 32% year over year, but has more than quadrupled sequentially and beat the estimates. Revenues were up 29% sequentially, coming in at $805 million. Management expects to see continued sequential improvements through the remainder of 2020, and predicts full-year earnings in the range of 45 cents to 50 cents per share.Representing JPM, 5-star analyst Stephen Tusa commented, “[We] see the stock as being relatively cheap compared to close peers within the Fab Tech and Med Tech space with significant upside post COVID-19 that does not appear to be entirely realized in the valuation as of yet compared to the peer FY2 expectations. CFX has strong brands and franchises… and an underappreciated productivity opportunity with primary end market bounce back in Fab Tech and demand spikes in Med Tech.”Tusa backs his upbeat comments with an Overweight (i.e. Buy) rating and a $52 price target indicating his confidence in a 38% one-year upside. (To watch Tusa’s track record, click here)Overall, Colfax has a Moderate Buy rating from the analyst consensus, based on 8 reviews breaking down to 5 Buys, 2 Holds, and 1 Sell. However, the majority expect shares to stay range bound for now, as the current $38.63 average price target indicates. (See CFX stock analysis on TipRanks)Beyond Meat (BYND)Last on today’s list of JPM calls is Beyond Meat, a company that made a lot of waves last year when it raised over $3.8 billion in its IPO. The company offers a vegetarian-based meat substitute, and it markets as more nutritious, better tasting – and more like meat – than competing products. The company was founded back in 2009, and has expanded its lineup of products to include simulated beef, pork, and chicken products.Overall, BYND stock still presents a positive façade. The shares are up 88% year-to-date, and the company registered a net profit in 1Q20, just as the corona crisis started. Since then, however, earnings have turned negative – and even worse, revenues showed a strong sequential drop in Q3. The latest quarterly figures showed $94 million at the top line, down 16% from Q2 and well below the forecast of $133 million, and an EPS loss of 28 cents – far worse than the 3-cent loss predicted. The biggest hit to Beyond Meat came from declines in restaurant business that was only partially redeemed by a 40% surge in grocery sales. The company did announce a partnership with McDonald’s to provide the meat substitute for the fast food giant’s new McPlant menu, but even that announcement was bungled. BYND shares fell sharply when it was rumored that McD’s had developed the meat substitute in-house. While that misconception has been corrected, BYND has only partially bounced back.In short, this company is facing serious headwinds in the near-term, and JPM is advising caution due to “visibility so low and the most recent quarter surprisingly soft.” Ken Goldman, rated 5-stars at TipRanks, writes of BYND, “We are now trying to model a company for which (a) we are not exactly clear why 3Q was so bad (the company’s explanation did not seem to be backed up by meaningful data), and (b) the partnership with McDonald’s could either be a game-changer or a dud.”Goldman’s caution is clear from his Underweight rating (i.e. a Sell), and his $104 price target suggests a 26% downside to the stock. (To watch Goldman’s track record, click here)JPM is not the only firm advising caution here. Beyond Meat’s analyst consensus rating is a Moderate Sell, based on 2 Buys, 7 Holds, and 7 Sells set in recent weeks. The stock is selling for $141.91 and its average price target of $110.71 indicates a probable downside of 22% in the coming year. (See BYND stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

  • Dow Jones Futures: Dow Makes History, As Tesla, Nio Set Record Highs; Hot IPO Stocks Corsair, Palantir Skyrocket

    Dow Jones futures in were focus early Wednesday after the Dow Jones Industrial Average crossed 30,000 for the first time ever.

  • Canada police supervisor relayed 'strong suggestion' to arrest Huawei CFO on plane, court hears

    A Canadian police supervisor who oversaw the arrest of Huawei Chief Financial Officer Meng Wanzhou relayed a "strong suggestion" from her superior to an arresting officer that Meng be apprehended on the aircraft she arrived on, according to court testimony on Tuesday. Huawei lawyers have alleged that during Meng's arrest at Vancouver airport two years ago, U.S. and Canadian authorities coordinated to use CBSA's additional investigative powers to interrogate her without a lawyer present, before Canadian police arrested Meng on a warrant from the U.S. charging her with bank fraud.

  • Biden’s plans will help those ‘fearful of outliving their retirement savings’

    President-elect Joe Biden wants to help Americans save for their golden years by expanding access to retirement savings plans, strengthening Social Security, and making health care more affordable.

  • VMware Gets Wary Support From Analysts on Third-Quarter Results

    While some analysts were impressed with VMware's earnings report, others say the results were 'a mixed bag.'

  • Bull Moves: Analysts Just Upgraded These 3 Hot Stocks

    The world’s largest asset manager is impressed with the market’s recent gains, and it has made that sentiment clear by upgrading US stocks. In its recent reassessment of conditions in the American financial markets, investment giant BlackRock issued a general upgrade for Wall Street. This wasn’t an upgrade on particular stocks, but on the US market as a whole.Explaining the move, the BlackRock note points out that the daily COVID news is just noise – the real news is on the vaccine front, where at least two effective vaccines are just months away from public distribution. A viable vaccine for the coronavirus disease will push us back to normal conditions, and boost investors’ mood immeasurably. Hence, the upgrade.“We upgrade US equities to overweight, with a preference for quality large caps riding structural growth trends, as well as smaller companies geared to a potential cyclical upswing,” BlackRock said. The company expects to see a cyclical upturn in the US economy in 2021, as the coronavirus crisis fades into the background and the political landscape moves back to pre-Trump patterns.The general upgrade by BlackRock was only one sign of confidence in the US markets. Several of Wall Street’s research firms have also been issuing upgraded stances, taking a micro view and applying their revisions to specific equities. We’ve pulled up three from the TipRanks database, and found that they fit BlackRock’s preference: mid- to large-cap companies with established positions in the market.Cleveland-Cliffs, Inc. (CLF)We’ll start with Cleveland-Cliffs, an Ohio based mining company. Cleveland-Cliffs specializes in iron production, and has four active mines in Minnesota and Michigan. The company focuses on mining, beneficiating, and pelletizing the ore, a process that produces iron pellets in a variety of grades fit for blast furnace smelting, steelmaking, and alloying. Cleveland-Cliffs is capable, on its own, of producing more than 40% of the total US capacity in iron pellets. It also produces flat-rolled carbon, stainless steel, and electrical steel products.As the economy ramps back up, recovering from the deepest coronavirus hits, Cleveland-Cliffs’ revenues have been rising. The company’s top line has grown since the first quarter of 2020, posting sequential gains in both Q2 and Q3. The third quarter number, at $1.65 billion, was in line with analyst expectations, and came in far ahead of the $555.6 million posted in the year-ago quarter.The share price has mirrored this recovery. The stock hit bottom back in mid-March, at just $3.14 per share. Since then, it has shown impressive growth. The shares have fully recouped those mid-winter losses, and are now trading up 32% year-to-date.GLJ Research analyst Gordon Johnson sees Cleveland-Cliffs gaining as the pandemic draws back and its customers resume normal economic activity. To this end, the analyst upgraded CLF from Hold to Buy, and his $15.80 price target suggests it has a 46% upside in the coming year. (To watch Johnson’s track record, click here)“US automotive production has rebounded to pre-pandemic levels, a clear positive for Cliffs, as ~27% of its (soon-to-be) steel demand comes from that sector. Even oil/gas rig counts, while still down sharply y/y, appear to have turned a corner in terms of growth. Moreover, our checks indicate potential delays to supply additions. As we see it, these dynamics, which have sent US HRC prices to near $734/short ton last week, have the potential to keep … price levels sustained into 2021,” Johnson stated.Overall, the Moderate Buy consensus rating on CLF is based on an even split; the stock has 3 Buys and 3 Holds on record. However, its recent share appreciation has pushed it above the average price target. The shares are selling for $10.85, while the average target remains $10.09 for now. (See CLF stock analysis on TipRanks)General Electric (GE)Also upgraded today is General Electric. The company once boasted one of the most famous marketing jingles in advertising – “We bring good things to life” – referring to its position as a major manufacturer of home appliances. Today, this multinational conglomerate has its hands in a wide variety of manufacturing sectors, from aviation to electrical power to renewable energy.GE’s stock has been on an upward trajectory since the company released the Q3 earnings report at the end of October. The results – while down year-over-year – showed solid sequential gains and came in above analyst expectations. At the top line, revenue grew from $17.7 billion to $19.4 billion, while EPS, which had been negative in Q2, turned positive and came in at 6 cents per share. The EPS forecast had been for a 6-cent loss. Christopher Glynn, 5-star analyst with Oppenheimer, sees GE in a fundamentally sound position. The analyst upgraded GE, taking it from Neutral to Outperform (i.e. Buy). His $12 price target implies an upside potential of ~15% for the next 12 months. (To watch Glynn’s track record, click here)Glynn commented, “Our Outperform rating reflects view of more pointed read-through of cost reduction initiatives resulting in early stages of clearer breadth of operating momentum across the segments. We believe working capital performance could surprise to the upside in 2021, considering GE working through widespread facility consolidations and managing working capital amidst that during2020 (and continuing).""We also like the extended duration of the debt structure and strong liquidity, now affording a backdrop toemerge from the Aviation downturn in a position of resilience,” the analyst noted. GE’s recent share appreciation has pushed the stock price above the average price target. The stock is currently trading at $10.45 per share – but the average target is $9.29. It remains to be seen if Glynn’s upgrade and higher target are the start of general reassessment of this stock. For now, GE has a Moderate Buy analyst consensus rating, based on 13 reviews that include 8 Buys and 5 Holds. (See GE stock analysis at TipRanks)Wells Fargo (WFC)Last but not least is Wells Fargo, whose $118 billion market cap makes it the world’s fourth largest bank. It is also the fourth largest in the US, boasting nearly $2 trillion in total assets. Wells Fargo offers a full range of banking services, for residential and commercial customers as well as major companies and investment firms.The corona crisis of 2020 hit Well Fargo hard, and the bank’s share price has still not recovered from the fall it took in February and March of this year. Revenues have been regaining ground through the past nine months, but slowly – the Q3 number, $18.7 billion, was up a full billion dollars from Q1, but still down from 4Q19, the last pre-corona quarter. The Fed’s low interest rate policy has put a damper on bank profits, and Wells Fargo’s net interest income for the Q3 was down 19% year-over-year to $9.4 billion.Despite these headwinds, Raymond James analyst David Long is turning bullish on WFC shares. In a research note issued today, the analyst double-upgraded WFC from Underperform (i.e. Sell) to Outperform (i.e. Buy) along with a $32 price target. (To watch Long’s track record, click here)In his comments on the stock, Long notes the composition of Wells Fargo’s loan portfolio as a structural strength: “We expect Wells Fargo's credit performance during this credit cycle to perform better than its peers due to its large exposure to residential real estate loans, which account for 35% of its total loan portfolio (compared to peers at 23%), as home prices have held up well. Furthermore, its exposure to hotel (1.3% of loans) and entertainment (1.0%) are well below levels of its peers.”the analyst concluded, "With the worst likely in the past, we now believe that its pretax pre-provision income has troughed, revenue is nearing a bottom, a multi-year expense rationalization initiative can finally be taken on, and repurchase activity can return in the near future."All in all, the analyst consensus rating here is a Moderate Buy, based on 14 reviews which include 7 Buys, 6 Holds, and 1 Sell. The average price target, however, reflects Wall Street’s caution here; at $29.08 it suggests only limited growth -- 1.64% to be precise. (See WFC stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.