U.S. markets open in 1 hour 46 minutes

  • S&P Futures

    3,707.50
    +5.50 (+0.15%)
     

  • Dow Futures

    30,249.00
    +79.00 (+0.26%)
     

  • Nasdaq Futures

    12,621.00
    -16.50 (-0.13%)
     

  • Russell 2000 Futures

    1,928.50
    +11.70 (+0.61%)
     

  • Crude Oil

    45.70
    +0.10 (+0.22%)
     

  • Gold

    1,861.50
    -13.40 (-0.71%)
     

  • Silver

    24.33
    -0.41 (-1.66%)
     

  • EUR/USD

    1.2109
    -0.0001 (-0.01%)
     

  • 10-Yr Bond

    0.9130
    0.0000 (0.00%)
     

  • Vix

    20.59
    -0.71 (-3.33%)
     

  • GBP/USD

    1.3443
    +0.0085 (+0.64%)
     

  • USD/JPY

    104.1280
    -0.0220 (-0.02%)
     

  • BTC-USD

    18,289.81
    +266.16 (+1.48%)
     

  • CMC Crypto 200

    356.97
    -18.42 (-4.91%)
     

  • FTSE 100

    6,576.29
    +17.47 (+0.27%)
     

  • Nikkei 225

    26,817.94
    +350.84 (+1.33%)
     

Stop calling the VIX the fear index: veteran options trader

Julie Hyman
·Anchor
·2 min read

Stock averages are roaring toward another hat-trick of records, with the S&P 500 (^GSPC), Nasdaq Composite (^IXIC) and Russell 2000 (^RUT) set to close at new highs. Looking for a window into market sentiment, and where stocks go from here? You might turn to the VIX, the so-called “fear index” — formally known as the CBOE Volatility Index (^VIX).

But a veteran options trader says you won’t find what you’re looking for.

“It is not now, nor has it ever been, the fear index. It was constructed to be the best estimate that we can come up with for 30-day volatility in the S&P 500,” Steve Sosnick, chief strategist at Interactive Brokers, told Yahoo Finance Live.

That’s illustrated by the current level of the VIX — around 20, historically interpreted as showing a higher level of “fear,” and at odds with that rally in the major averages.

So why is the VIX so high when stocks are so high? Sosnick said it’s a question of market mechanics, and focusing on what the VIX actually measures.

Speculative call buying has heated up. That’s when traders buy options essentially betting that indices or individual stocks will rise.

“Call volume is at records and call open interest is at records,” Sosnick said. “There are tons of people who have discovered that calls can be — in a very speculative environment — a way to supercharge the speculation.”

Volatility Index, known by its ticker symbol VIX concept, cube wooden block with alphabet combine the word VIX on black chalkboard background.
The CBOE Volatility Index, VIX, is known as the fear index. Credit: Getty

But there’s always another side to the trade.

“Call sellers tend to be professionals, who are quick to raise prices via higher implied volatilities and will hedge their overall exposure with options on related products. That raises the level of implied volatility throughout the system, which is reflected in higher VIX,” Sosnick wrote in a recent blog post outlining the phenomenon.

All of that said, the VIX can at times act as a sentiment indicator. But that’s “more a matter of convenience and correlation than construction,” Sosnick wrote.

So if not the VIX, then what? That’s where it gets tricky, Sosnick said in a follow-up email.

“The problem with sentiment indicators is that there is no single foolproof measure,” he said. He mentioned the put-call ratio as a contrarian indicator, “but even that has severe limitations.”

Julie Hyman is the co-anchor of Yahoo Finance Live, weekdays 9am-11am ET.

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.

Latest Stories

  • Tesla's Musk relocates to Texas from California; compares himself to war general

    Musk confirmed the move in an interview with Matt Murray, the Wall Street Journal's editor in chief. "The two biggest things that I got going on right now are the Starship development in South Texas ... and then the big new U.S. factory for Tesla," the 49-year-old Tesla chief said.

  • Goldman Sachs Picks 2 Electric Car Stocks to Buy (And 1 to Watch)

    Reducing carbon emissions is all the vogue among the green policy wonks these days, and whether you believe in the efficacy of those policies or not, one thing is undeniable: they will have an impact on your daily life. Specifically, they will impact the cars you drive – and probably your fuel and electric bills as well.It’s no secret that the Trump Administration has favored the oil and gas industry, and in fact, gasoline prices have declined during the past four years. The incoming Biden Administration is expected to look far more favorably on green policies, particularly the electrification of the automobile fleet. Electric vehicles have been with us for a while, and some models are achieving popularity and driver approval. The next step will be a governmental push, via policy, to make EVs cheaper to build, more affordable to buy, and more practical on the road.In a recent report from Goldman Sachs, the investment giant foresees global sales of electric vehicles hitting 1.8 million units this year, with 8.3 million by 2025 and an impressive 34 million by 2035. The result of this will be a reduction in the conventional car/electric car ratio of 18%.With this in mind, Goldman’s stock analysts are tapping two electric vehicle companies which are likely to succeed in the climate of the next four years – and one to watch from the sidelines. We've used the TipRanks database to get a better sense of what other Wall Street analysts think about the trio. Li Auto (LI)Li Auto is one of the myriad EV production companies that has cropped up in China in recent years. The Chinese domestic car market should not be overlooked – the country has a population near 1.4 billion, with some 800 million in the urban areas, and as a whole, China is rapidly growing wealthier. Li specializes in plug-in hybrids, which combine combustion engines and an electric drive train – and are especially useful in a country with a limited EV charging network. Li first model, the Li ONE, was put on the market in November of last year, and by this past October, the company had sold over 22,000 cars. That month, the sales volume hit 3,700, making the Li ONE China’s best-selling electric vehicle model. This company is a newcomer to the US stock markets, having held its IPO at the end of July this year. Share debuted on the market at $11.50, higher than the initial projected range. Since the IPO, shares in LI have gained 173%. Covering Li Auto for Goldman Sachs, analyst Fei Fang writes, “We believe Li Auto is differentiating itself from the broader Chinese auto-making industry by envisioning and creating compelling EV consumer experiences – and showing a willingness to take on the risk of unconventional technologies and act innovatively… driving transformations that will lead the long-term adoption of EVs in China. We view Li ONE as the first step in a larger innovation plan that will provide significant optionality value for the share price.”To this end, Fang rates LI a Buy along with a $60 price target. At current levels, this implies a 91% one-year upside. (To watch Fang’s track record, click here)Looking at the consensus breakdown, Wall Street takes a bullish stance on LI. 3 Buys and 1 Hold issued over the previous three months make the stock a ‘Strong Buy.' It should also be noted that its $36.65 average price target suggests 16% upside from the current share price. (See LI stock analysis on TipRanks)Tesla (TSLA)This company needs no introduction; Elon Musk, with his genius for promotion and notoriety, has seen to that over the past few years. He’s been helped along by the company’s successful efforts to address quality control and production bottlenecks, while introducing popular new models. The result: TSLA stock has skyrocketed 667% in 2020.The huge spike in share value has accompanied record-setting profits. Tesla turned profitable in 3Q19, and has remained so despite the impact of corona. The company’s 3Q20 results were nothing short of remarkable. Revenues rose to $8.8 billion, a 39% year-over-year gain and an even bigger 46% sequential gain. EPS rose 105% year-over-year, to hit 76 cents per share. And even better for the car maker: the free cash flow is solid, at $1.4 billion for the quarter.The third quarter results stood on a solid foundation of production and deliveries. The company reported 145,000 vehicles manufactured in the quarter, with nearly 140,000 delivered. Improvements in delivery efficiency have helped the company to cut back on its new vehicle inventory.Goldman analyst Mark Delaney is bullish on Tesla – and on the EV sector’s future, in general. He writes, “We believe that the shift toward battery electric vehicle (EV) adoption is accelerating and will occur faster than our prior view. We believe that battery prices are falling faster than we previously expected which improves the economics of EV ownership, and there has recently been an increase in regulatory proposals from some jurisdictions to limit or ban the sale of new internal combustion engine (ICE) vehicles entirely in 10-20 years.”Backing his bullish stance, Delaney rates TSLA a Buy. His price target, of $780, suggests an upside of 21% in the next 12 months. (To watch Delaney’s track record, click here)However, despite the huge gains in recent months, or maybe because of that, Wall Street remains cautious of Tesla. The analyst consensus rating is a Hold, based on 25 reviews, including 10 Buys, 8 Holds, and 7 Sells. The stock’s average price target is $403.24, indicating a possible downside of 37% from current levels. (See TSLA stock analysis on TipRanks)Nio (NIO)Last on our list is Goldman’s neutral call on Nio, another Chinese electric vehicle company. Nio has, in recent months, managed to stand out from China’s crowded domestic EV market, introducing new models and innovative ideas. The company’s current line-up includes three mid-size SUVs powered by lithium-ion batteries, and sports car, a 2-door coupe with water-cooled electric motors. The company has several models, including two sedans, a minivan, and another SUV, lined up for future release.Among the customer-oriented ideas that Nio is working with is ‘Battery as a Service,’ or BaaS. This concept divorces the battery from the vehicle, allowing car owners to purchase a monthly subscription and ‘refuel’ their vehicle by swapping out the battery assembly.Earnings, while still at a net loss, have been improving for the past four quarters, and Q3 revenue came in at $4.53 billion, the best in over a year. Year-to-date, NIO shares have shown tremendous growth -- the stock is up over 1000%.Noting that Nio has strength in its leading position in the market, Goldman's Fei Fang writes of the risks: “While Nio’s brand has been impressively established, we expect competition to heat up in the coming years with large OEMs launching comparable models, such as ID4 and Model Y… If our projected battery price declines / excess capacity does not come through and the industry works with tight manufacturing capacity and hefty EV component prices, it would weigh on Nio’s margin expansion.”Fang gives NIO shares a Neutral (i.e. Hold) rating. But the analyst might as well have said “buy” — because he thinks the stock, currently at $45.11, could zoom ahead to $57 within a year, delivering 31% profits to new investors. Overall, Nio’s stock gets a Moderate Buy analyst consensus rating, based on 7 Buys and 4 Holds. Meanwhile, the $49.01 average price target implies nearly 9% upside. (See NIO 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.

  • DoorDash, Airbnb Lead Big IPO Week—but Peter Thiel’s AbCellera Could Be the Winner

    AbCellera is expected to price its IPO on Thursday and trade the following day. The company is offering 23 million shares at $14 to $17 each and could raise $391 million at the top of its expected range.

  • 10 of the Best Stocks to Buy for 2021

    In 2021, the fate of the economy -- and the stock market -- will likely revolve around the pace and effectiveness of factors like vaccine rollouts for COVID-19 along with fiscal stimulus and government assistance programs. As nations race to reach the coveted post-pandemic phase, themes like technology, penny pinching, entertainment and personal health run through the best stocks to buy for 2021. Adobe is "best in class" in its industry by a country mile.

  • DoorDash investors are fearful of getting Snowflaked

    Upstarts like DoorDash, the largest US food delivery company, are beneficiaries of that meteoric offering, as Snowflake’s success has created a flurry of demand for shares of pre-IPO companies. “Snowflake is becoming a verb, as in, ‘I don’t want to be Snowflaked,’ meaning I don’t want to be left out,” said Greg Martin, founder of Liquid Stock, which provides financing for shares of pre-IPO companies and tracks private-stock prices. Bids for shares of DoorDash surged 40% between September, when Snowflake went public, and November 2020, according to Liquid Stock data.

  • The Consumer Could Explode in 2021. Here Are the Stocks to Buy.

    The consumer-discretionary sector, which includes pandemic winners such as e-commerce companies and fast-food chains, also includes reopening plays such as cruise lines and bricks-and-mortar retailers.

  • These 2 Penny Stocks Could Surge Over 200%, Says Raymond James

    On Wall Street, it’s out with tech and mega-caps and in with small-caps, cyclicals and value. Investors have been rotating away from the big names that powered the market’s record-breaking charge forward since its March low on encouraging COVID-19 vaccine news. At the same time, there has been a weaker U.S. dollar, steeper yield curve and a commodity price run-up.What does all of this mean? According to Raymond James strategist Tavis McCourt, it is “indicative of investor belief in strong economic growth in 2021, driven by economic re-opening and a ‘wall of cash’ sitting in bank accounts that will be deployed into the real economy in 2021.” The strategist adds that investor focus has landed squarely on a new stimulus package, which “only increases the chances for robust growth in 2021 as economies fully re-open.”“This outweighed significant evidence of slowing economic trends (jobs growth, Visa credit/debit card spending, Bloomberg high frequency data), which the market broadly is viewing as a short-term phenomenon until vaccines are deployed, as PMs continue to reposition portfolios in preparation for economic re-openings,” McCourt explained.Taking McCourt’s outlook into consideration, we wanted to take a closer look at two penny stocks scoring rave reviews from Raymond James. These tickers trading for less than $5 per share could gain over 200% in the next year, so say the firm’s analysts. Using TipRanks’ database, we found out what exactly makes both so compelling even with the risk involved with these plays.ADMA Biologics (ADMA)Operating as an end-to-end commercial biopharmaceutical company, ADMA Biologics develops specialty plasma-derived products for the prevention and treatment of infectious diseases in the immune compromised and other patients at risk of infection. Currently going for $1.94 apiece, Raymond James thinks that now is the time to pull the trigger.Representing the firm, analyst Elliot Wilbur points out that post-commercialization, the company's key products, Asceniv and Bivigam, continue to generate solid revenue. Both products were designed as treatments for primary humoral immunodeficiency (PI).“Recent numbers have benefited from what we believe is inventory accumulation derived from the increasingly positive positioning of plasma therapies around potential use in COVID-19, with year-to-date year-over-year September growth being 2.0% for the IG space and (2.9%) for the IVIG subsector,” Wilbur explained.Highlighting the approval of Gilead’s remdesivir as a COVID-19 treatment, Wilbur points out that it is “only a treatment and cannot be taken preemptively, keeping the door wide open for plasma therapies focusing on vaccine development.”Expounding on this, the analyst stated, “On the forefront of the vaccine race remains the CoVig-19 plasma alliance, a coalition of leading plasma players work with the National Institute of Allergy and Infectious Diseases (NIAID) to test hyperimmune therapies against COVID-19. The alliance, which consists of major players such as CSLBehring, ADMA, Octapharma, and Takeda, looks to accelerate the development of plasma therapies for COVID-19, aiding in potential regulatory clearance for associated therapies going forward... Ahead of results from the 500-patient trial, the alliance began manufacturing the plasma treatment viewing the likelihood of positive results and eventual approval as being ‘very high’.”Adding to the good news, ADMA is set to achieve its target of 5-10 plasma collection centers by 2025, with the company filing the Biologics License Application (BLA) for its third collection center on December 1. This center will go through an estimated 12-month approval process that involves both a review of the BLA as well as a site inspection. Approval could come in Q4 2021, according to Wilbur.In line with his optimistic approach, Wilbur rates ADMA an Outperform (i.e. Buy) along with a $7 price target. Should his thesis play out, a potential gain of 260% could be in the cards.Are other analysts in agreement? They are. Only Buy ratings, 5, in fact, have been issued in the last three months, so the consensus rating is a Strong Buy. Given the $6.65 average price target, shares could skyrocket 242% in the next year. (See ADMA stock analysis on TipRanks)InflaRx NV (IFRX)Making breakthrough discoveries in the area of anti-C5a antibody generation, InflaRx develops highly specific monoclonal antibodies targeting activation products of the complement system. Based on data from its peer, Raymond James believes that at $4, its share price presents an attractive entry point.ChemoCentryx recently reported the results from the Phase 2 AURORA study of C5aR inhibitor avacopan in hidradenitis suppurativa (HS), with the therapy missing its primary endpoint in all patients but working in a pre-specified ITT analysis of Hurley Stage III patients at the only active dose tested. Raymond James analyst Steven Seedhouse sees a positive readthrough for InflaRx.“A home run outcome for CCXI would have been negative for IFRX. Reason is, while it would have established proof of mechanism in HS (which is lacking), it would have encumbered IFX-1 competitively in HS but also indicate avacopan is just a better molecule in general (if it would've cleanly worked in an indication where IFX-1 Phase 2 data were ambiguous),” Seedhouse explained.This is not to say that a failure for ChemoCentryx would have been a win for InflaRx. According to Seedhouse, it would have “totally squashed the mechanism in HS since we know avacopan works elsewhere (ANCA vasculitis).”On top of this, InflaRx initiated the Phase 3 part of the Phase 2/3 PANAMO study in patients with severe COVID-induced pneumonia. With Alexion noting that their Phase 3 study in hospitalized COVID-19 patients with severe pneumonia or ARDS is already 30% enrolled and is expected to report initial data from a planned interim analysis in 1H21, Seedhouse argues a positive result would “likely have positive readthrough for IFRX, given validation of the complement mechanism in COVID-19.”Based on all of the above, Seedhouse rates IFRX an Outperform (i.e. Buy) along with a $15 price target. This target puts the upside potential at 273%. (To watch Seedhouse’s track record, click here)Turning to the rest of the Street, 3 Buys and 1 Hold have been assigned in the last three months. Therefore, IFRX has a Strong Buy analyst consensus. With an average price target of $10.50, shares could soar 161% in the year ahead. (See IFRX 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.

  • Dave Ramsey says beware these 10 major money 'don'ts'

    The financial expert and radio host says Americans stay poor because of these blunders.

  • XPeng stock falls after upsized share offering prices at near 8% discount

    Shares of XPeng Inc. dropped in premarket trading Wednesday, after the China-based electric vehicle maker's upsized public share offering priced at a discount.

  • Advanced Micro Devices Headed For Triple Digits

    The sky’s the limit for AMD in 2021, barring unforeseen headwinds.

  • I’m 63, unemployed since March, and have $220,000 in retirement savings — should I claim Social Security early?

    I am 63 and have been unemployed since March with unemployment benefits to run out by Dec. 24. Here is my question: Is this a good time to take Social Security to help subsidize my gig work or should I wait until my Full Retirement Age? See: Confused about Social Security — including spousal benefits, claiming strategies and how death and divorce affect your monthly income?

  • 3 U.S. Cannabis Stocks Gearing up for Growth; Cantor Says ‘Buy’

    At the end of 2018, Canada fully legalized cannabis, nationwide, for both medical and recreational use. With the incoming Biden Administration, the US is expected to follow suit with Federal-level legalization, or at least formal decriminalization, sometime in the next four years. An exact timetable is impossible to predict; much will depend on the partisan makeup of Congress after the Georgia Senate runoff vote in early January.For now, cannabis legalization in the US is something of a checkerboard. Most states have at least partial legalization, with only Idaho and Nebraska holding out. Eleven states have made cannabis fully legal for all adults; the remaining 37 states have some form of partial medical use, and even Nebraska has decriminalized the substance. Under Federal law, cannabis remains an illegal controlled substance.Cantor analyst Pablo Zuanic recently met with several cannabis industry execs and came back with a few takeaways."[The] speakers believe that under a Biden WH and Republican-controlled Senate, banking reform would pass in early 2021 and would be included in a COVID relief package [...] In general, both speakers believe measured progression in legislation is the best path at the federal level, and expect a version of the STATES act (making cannabis federally permissible) to pass the Senate post the next midterms (this could take place sooner in the event of a 50-50 Senate split and a Biden WH). Other changes (descheduling, federal legalization) may take longer," Zuanic noted.Prepping for the possible changes, Zuanic has also been reviewing several cannabis stocks operating in the American market. Using the TipRanks database, we’ve pulled up the stats on three such stocks, which show the classic ‘growth stock’ profile: plenty of upside potential, recent strong share appreciation, and a Strong Buy rating from the analyst consensus. Curaleaf (CURLF)We’ll start with Curaleaf which, with a $7.7 billion market cap, is one of the largest cannabis companies around. By revenue, Curaleaf is the world’s largest cannabis producer, a position it cemented with the acquisition, earlier this year, of private competitor Grassroots. Curaleaf has operations in 23 states, including 30 processing facilities, 88 dispensaries, and 134 dispensary licenses. Curaleaf grows its product in 22 cultivation sites, with a combined 1.6 million square feet of cultivation capacity.Curaleaf’s performance this year, both in financial results and share appreciation, show the potential of the cannabis market in the US. The company reported $193.2 million in Q3 revenue, for a 59% sequential gain and even more impressive 164% year-over-year growth. The gains were powered by retail revenue, which grew 3x year-over-year to 135.3 million and wholesale revenue, which saw a massive 7x yoy gain to $45 million. While Curaleaf reported a net loss for Q3, that loss was only 1 cent per share, where analysts had expected twice that amount.Curaleaf shares are up 85% year-to-date. While trading in the company has been volatile, it has regained all of its COVID related losses from last winter.Covering this stock for Cantor, Zuanic writes, “We believe the company’s scale advantage, ability to raise funds ($1Bn shelf), and continued store and cultivation expansion, all warrant a valuation premium to peers… [Curaleaf] did not provide guidance for 2021, but the assumption is that it would post growth over the $1Bn annualized figure with which it will likely exit 2020.”Backing this bullish stance, Zuanic gives the stock an Overweight (i.e. Buy) rating, and his $20 price target suggests it has room for 71% growth in 2021. (To watch Zuanic’s track record, click here)Overall, CURLF shares get a Strong Buy rating from the analyst consensus, based on an 8 to 1 mix of Buy versus Hold reviews. The shares are trading at $11.69, and their $14.87 average price target implies a one-year upside potential of 27%. (See Curaleaf stock analysis on TipRanks)Green Thumb (GTBIF)Green Thumb is a Canadian company that has been expanding its foothold in the US market. While Canada’s nationwide legalization regime gives it an advantage over the fragmented, the US is a far larger market, with nearly 10x Canada’s population. Green Thumb’s products include edibles, pre-rolled joints, and vapes, along with a range of CBD-infused wellness items aimed at the home healthcare market. In the past two months, the company’s market cap has expanded from $3.3 billion to $4.6 billion.That market cap growth has been fueled by a massive share appreciation. GTBIF bottomed out in March, at the height of the coronavirus crisis, and is up 426% since then. Year-to-date, the stock is up 120%.That share growth, in turn, has been powered by strong revenues through 2020. In fact, Green Thumb’s Q1 top line showed a 35% sequential gain, at a time when many companies were registering quarter-over-quarter losses. GTBIF has continued to growth revenues since then, with Q3’s top line coming in at $157.1 million, up 131% year-over-year and 31% from Q2. These strong revenues yielded a Q3 EPS of 4 cents per share, derived from total net income of $9.6 million.In his note on Green Thumb, Zuanic reiterates his Overweight (i.e. Buy) rating, and sets a price target of $35 to indicate a 62% upside in the coming year.Backing his outlook, Zuanic writes, “We estimate that there is at least 20% upside to 2021 consensus sales estimates [...] Given the profitability trackrecord, growth potential, and franchise strength, we think valuation multiples well above CPG stocks would be deserved (CPG multiples are ~20x EBITDA on average). Also, with federal permissibility still 2-4 years out, the larger MSOs have a window before CPG or the larger Canadian companies (the well-funded ones) can get involved in the US market in a major way. All this should be factored into the stock’s valuation."Overall, Green Thumb has a unanimous analyst consensus rating, showing that Wall Street agrees with Zuanic’s views. The stock has no fewer than 8 Buy reviews in recent weeks. The average price target is $30.81, which suggests a 43% upside potential. (See Green Thumb’s stock analysis on TipRanks)Cresco Labs (CRLBF)Last but not least is Cresco Labs, a Chicago-based cannabis company with operations in the medical marijuana sector. The company markets its products in retail stores under the Sunnyside* brand, with licenses in 6 states: Arizona, Illinois, Massachusetts, New York, Ohio, and Pennsylvania. Cresco full product line-up includes eight other brand names, offering everything from buds, joints, and edibles to vapes and gummies. Counting all production facilities, retail licenses, and operational dispensaries, Cresco has a presence in 9 states.Cresco has shown strong growth in 2020. The stock is up 48% year-to-date, and there are still another three weeks of trading before year’s end. The gains have fully erased losses taken early in the COVID pandemic.Cresco has posted Q3 revenues of $153.3 million, a company quarterly record. The top line result was $59 million higher than the previous quarter, for a 63% sequential gain. The revenues rested on a foundation of strong retail sales, which totaled $90.5 million in the quarter. Cresco’s quarterly earnings are up from $66.4 million in Q1, a 130% gain year-to-date.Pablo Zuanic notes the company’s retail success in his note on the stock. He says, “Cresco beat our above consensus sales estimate by 23% on market share gains in wholesale in states like IL, PA, and CA, and continued IL retail outperformance… The branded wholesale model (near 60% of sales vs. 25% at peers) and depth (leadership in key states, with wholesale share above 20% in IL/PA) over time could lead to a premium over peers, in our view… As we project into 4Q, we model at least the same share levels per state in 3Q plus underlying market growth. In CA the company is gaining share per store (existing customers) as well as adding new retail customers.”These comments back up Zuanic’s Overweight (i.e. Buy) rating. His price target, of $18, indicates confidence in 77% growth potential for next year. With 5 Buy reviews overbalancing a single Hold, Cresco is our third Strong Buy cannabis stock. At a current trading price of $10.12, the $14.61 average price target gives a one-year upside of 44%. (See Cresco’s stock analysis on TipRanks)To find good ideas for cannabis 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: Apple Nears New Buy Point, While Tesla Hits Record High; 4 Top Stocks In Or Near Buy Zones

    Dow Jones futures were focus late Tuesday, as Apple stock nears a new buy point. Five stock market leaders are in or near buy zones, like DraftKings.

  • AT&T Stock: Is It A Buy Right Now? Here's What Earnings, Charts Show

    Despite being one of the most recognizable wireless carriers in the U.S., AT&T stock has had a rough 2020. But the stock does have some perks. Is it a buy?

  • QuantumScape EV Batteries Can Be Charged Super Fast. Why That Matters.

    Electric-vehicle-battery start-up (QS) can get its lithium metal solid-state batteries to 80% full in 15 minutes without compromising battery life or safety. If QuantumScape’s (ticker: QS) technology scales up, it means a typical EV with some charge left—and with 200 or 300 miles of designed per charge range—could pick up about 200 miles of driving range in less than 15 minutes. Quantum released its data ahead of the company’s “solid state battery showcase,” which begins at 11 a.m. Eastern time.

  • Will Nio's Stock Reach $100 By 2022?

    Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.We surveyed a group of over 300 investors on whether shares of Nio Inc (NYSE: NIO) will reach $100 by 2022.Nio Stock Forecast In the near-term, the Shanghai-based EV maker Nio continues to garner investor's attention given marked earnings growth.Nio operates in China's premium electric vehicle market. The company designs and jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence.Rounding out 2020 earnings, Nio on Nov. 17 reported above-consensus third-quarter results, thanks to strong deliveries and margin improvement.Revenues climbed 146.4% year-over-year and 21.7% sequentially $666.6 million. This compares to the year-ago revenue of $262.47 million. The company also issued a strong fourth-quarter outlook.Nio trades at $46.56 at publication time, off the 52-week low of $2.11.Overwhelmingly, 76.5% of Benzinga traders and investors said Nio would indeed reach $100 per share by 2022.Our study revealed investors saying the EV sector will explode in 2021, Nio could emerge as a leader in the sector.Among traders and investors who believe Nio stock will reach $100 in the next year, one respondent said, "Nio has great technology in place with their extensive battery charging and power swap facility network. New EV models have been reported and are being introduced. When they start selling to Europe and the USA, they will be over $200."Benzinga has been breaking actionable financial news and curating high-quality financial data sets since 2009. Learn more today about receiving stock and market data through APIs. This survey was conducted by Benzinga in December 2020 and included the responses of a diverse population of adults 18 or older.Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 300 adults.See more from Benzinga * Click here for options trades from Benzinga * Will Nio Or Xpeng Stock Grow More By 2025?(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Kushner Cos. Spent the Trump Years Unwinding Scion’s Costly Bets

    (Bloomberg) -- Guy Fieri’s Times Square restaurant, where Jared Kushner and Ivanka Trump partied in late 2016 before heading to Washington, is gone. The office tower at 666 Fifth Ave., once the headquarters of the Kushner family’s real estate empire, has been sold. So too has a stake in a project in the trendy Dumbo neighborhood of Brooklyn.New York looks a lot different now than it did before Jared Kushner left town to take a job as a senior adviser to his father-in-law, President Donald Trump. Kushner Cos., the company where he was chief executive officer, has pulled back from the city, winnowing almost a decade’s worth of investments in a few years. Instead, it has relocated its ambitions to apartment complexes in New Jersey and Florida.It isn’t clear if Kushner will return to an active role in the company after four years in the White House, or even if he’ll go back to New York. The changes made in his absence by his father Charles Kushner and company president Laurent Morali come after a decade-long push into the city, most of it when Jared Kushner was CEO. Although there were successes, some of the biggest deals foundered. High purchase prices, excessive borrowing and unrealistic expectations were followed by declining valuations and debt renegotiations.Kushner Cos. didn’t respond to questions about whether Jared Kushner would rejoin the company or about the change in strategy. But Christopher Smith, its top lawyer, pointed in an email to a number of profitable transactions, including investments in Lower Manhattan and the Gowanus neighborhood of Brooklyn. He said other buildings had gained in value.During the Trump years Kushner Cos. chased investors from China, Qatar and Israel as Jared Kushner was helping shape foreign policy. He stepped down from his role at the company and transferred some of his assets to family members, but the structure of the divestments wasn’t clear, exacerbating ethics concerns.At the same time, the company purchased apartment buildings in the suburbs of New Jersey, Maryland and Virginia, markets that are now booming as people flee cities during the Covid-19 pandemic. It is also looking to break into new territory: multifamily projects in South Florida.Some of the transactions that brought the company to this point have been painful. The 2018 sale of 666 Fifth Ave. was necessary to pay off a loan incurred in 2007, at the peak of the market, when Kushner Cos. purchased the office tower for a then-record $1.8 billion. Jared Kushner didn’t become CEO until the following year, but he was involved in the negotiations and touted the purchase in a news release as having “great upside potential.”Saying goodbye to the property – a 99-year lease on the office space was sold to Brookfield Asset Management Inc. for $1.3 billion – was a comedown from plans to demolish the building and replace it with an even taller skyscraper in partnership with China’s Anbang Insurance Group, an option weighed by the company during Kushner’s first months in the White House.A few blocks away there’s the Times Square retail property – six floors of the building that once housed the New York Times. Kushner Cos. bought the space in 2015, and a year later raised $370 million of debt based on an appraisal price of $470 million, a 59% increase over what it had paid.Now it looks as though the financial assumptions underpinning that valuation were a mirage. To fill the building, Kushner Cos. turned to tenants whose need for space was great but whose assessment of demand for experiential attractions turned out to be misguided. There was an exhibit featuring digital dolphins, and another with detailed miniatures of world monuments.By the end of last year, Guy’s American Kitchen & Bar was closed, a planned food hall never opened, a third tenant went bankrupt and a fourth wasn’t paying full rent. Kushner Cos. defaulted on $85 million of its debt there last December, and an August appraisal put the property’s value at $92.5 million, lender records show, about a 70% drop from the purchase price.“The former New York Times building was really a retail disaster,” said Joshua Stein, a New York-based real estate attorney. “One concept after another failed.”Kushner Cos. also sold a less than 5% stake in the Watchtower complex in Brooklyn’s Dumbo neighborhood, acquired from the Jehovah’s Witnesses in 2016. Jared Kushner, whose father-in-law was running for president at the time, trumpeted plans to convert the buildings into stores and loft office spaces. Kushner’s father decided to refocus elsewhere.The list of New York sales since January 2017 includes two other Brooklyn development sites and apartments in Queens. The company hasn’t announced any major acquisitions in the city since then.Some New York deals that originated during Jared Kushner’s tenure have been successful. Three properties were sold for a combined gross profit of $239 million, according to data provided by Smith, the company’s lawyer. But that’s more than offset by about $200 million in operating losses at 666 Fifth Ave. after debt payments, figures provided by lenders to investors show, and a $200 million drop in value for the Times Square space.New York isn’t the only big city where Kushner Cos. is retrenching. The company has been in talks to offload its only Chicago office property, a 31-story tower originally built for AT&T Inc., for $188 million, a 32% discount from the 2007 purchase price and barely enough to cover the property’s mortgage.Investments in other markets have been ample. In 2019, the company made its biggest purchase in more than a decade, spending more than $1 billion on 6,000 apartments in the Baltimore and Washington suburbs. Two years earlier, it had teamed up with Israel’s largest asset manager to purchase 1,000 apartments in Plainsboro, New Jersey.The company’s return to its suburban roots might seem a surprising denouement, at least to those who thought Jared Kushner’s public role might facilitate private deal-making. But working for Trump often proved more awkward than lucrative.Kushner’s rising star attracted interest from investors who hadn’t done business with his family’s company. It also drew public scrutiny when his sister, Nicole Kushner Meyer, mentioned her brother’s White House role while pitching investors in China on a project in Jersey City, New Jersey. The company later apologized to anyone who interpreted her remarks as an attempt to lure investors.Anbang, which made real estate purchases across the U.S. prior to Trump’s China-bashing ascent to the White House, walked away from 666 Fifth Ave. soon after Bloomberg News reported details of a proposed deal with Kushner Cos. in early 2017 that would have provided a $4 billion construction loan and a $400 million payout to the Kushners. Chinese authorities seized Anbang the following year and imprisoned its chairman on unrelated fraud and embezzlement charges.Qatari royals also weighed an investment in 666 Fifth Ave. During the 2016 presidential campaign, Jared Kushner and his father had talked with Sheikh Hamad bin Jassim Al Thani, who’d previously served as Qatar’s prime minister and head of its sovereign-wealth fund, about investing in the tower. The deal would have included $500 million from the sheikh’s investment firm, contingent on finding other investors. Talks stalled after simultaneous negotiations with Anbang fell apart.One Kushner Cos. business partner who asked not to be identified discussing the closely held business said Jared Kushner’s work as Trump’s emissary to Israel and the Middle East introduced him to a new set of wealthy investors who could become partners once he returns to the private sector.Last week, on what may be his last trip to the region, Jared Kushner worked to bridge the divide between Saudi Arabia and Qatar, which had worsened after Saudi Arabia launched a blockade of its neighbor that Trump backed. A spokesman for the White House declined to comment.The company also is positioned to benefit from Trump’s 2017 tax law, which created incentives to invest in low-income neighborhoods designated as opportunity zones. One Florida development is in such an area, which allows investors to defer taxes on capital gains reinvested there. Kushner Cos. is expanding properties in zones in the New Jersey beach town of Long Branch. It has declined to say whether it’s taking advantage of the tax breaks, and no public disclosures are required.Whether he does come back to the family real estate business, Jared Kushner still owns a stake in Cadre, the startup he cofounded that sells fractional shares of investments in property deals. Cadre arranged to buy him out last year, but the deal was shelved after the pandemic hit, and the company has reduced staff and made other cutbacks. A spokesman for Cadre didn’t provide comment.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.

  • 3 Restaurant Stocks Investors Should Own Ahead Of Vaccine Rollout

    As 2020 comes to an end, there is finally hope 2021 will be a better year from a health and safety perspective. Tens of millions of Americans could receive a vaccine against the novel coronavirus soon, with hundreds of millions expected to follow suit over the coming months.Many are now cautiously optimistic that a successful vaccine rollout can usher in some sort of return to normal. This would mean that restaurants, one of the hardest-hit sectors during the pandemic, can safely operate indoor and outdoor dining with fewer restrictions.Investors looking to buy restaurant stocks tied to a potential economic reopening have several options. The following is a list of some of the restaurant stocks highlighted by three pros as benefiting from a very supportive environment over the coming months.Bloomin' Brands BMO Capital Markets analyst Andrew Strelzik recently upgraded Outback Steakhouse's parent company Bloomin' Brands Inc (NASDAQ: BLMN) from Market Perform to Outperform in mid-November, with a price target lifted from $17 to $22.According to the analyst's calculations, the Bloomin' portfolio of brands can generate margin upside even if domestic dine-in unit volume comes in 5% below 2019 levels.The company has a path to additional upside potential as small independent restaurants continue to shut their doors, leaving hungry customers with fewer restaurant options, the analyst said. What makes Bloomin' stock noteworthy is the firm's estimates actually implies the company falls short of management's own targets. Specifically, upside potential for the stock exists if operating margins come in at 6.4% versus management's own 7% internal target, according to BMO. McDonald's Iconic fast-food giant McDonald's Corp (NYSE: MCD) may have been better positioned than rival quick service restaurants during the pandemic.The company was active in improving its drive-thru and delivery business before the start of 2020.But heading into 2021, McDonald's remains a restaurant stock to own, Pete Najarian said on CNBC's "Halftime Report" Nov. 16. McDonald's is getting "bigger and bigger and bigger" in the digital universe and this will prove to be a winning strategy, he said. Investors should be open to the reality that a full return to "normal" may take years. Until then, consumers may still prioritize digital ordering, which is considered a much safer option.Starbucks Starbucks Corporation (NASDAQ: SBUX) has certainly seen traffic fall in the morning, as many repeat customers are still working from home. But what makes the stock a standout ahead of the vaccine rollout is how it remained fresh in everyone's minds.Most notably, the coffee chain generated such a "degree of urgency" during its annual "Red Cup Day" on Nov. 6, according to data analytics company Placer.ai.In fact, the chain saw a "massive" boost in foot traffic to the point where it was its third-most trafficked day in recent memory, behind Black Friday 2019 and Dec. 26, 2019.The coffee chain may have not missed a step in adapting to consumers evolving wants and needs. There is plenty of reason to believe that as millions of people potentially return to their offices, their morning routine of picking up Starbucks will continue as before.See more from Benzinga * Click here for options trades from Benzinga * Gene Munster On What DoorDash, Airbnb IPOs Mean For FAANG Stocks * Cramer On Cruise Stocks: 'The Robinhood People Were Right'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Top Tech Penny Stocks for Q1 2021

    The technology sector consists of businesses that develop, build, and market consumer electronics, electronic components, and software. Companies in the tech sector may also provide information technology (IT) services such as cloud computing. While the best-known companies are giants like Apple Inc. (AAPL) and Microsoft Inc. (MSFT), there also are tech businesses that are classified as penny stocks.

  • 5 Value Stocks In The Technology Sector

    What are Value Stocks? A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.Below is a list of notable value stocks in the technology sector: 1. Viomi Technology Co (NASDAQ: VIOT) - P/E: 9.69 2. MIND C.T.I. (NASDAQ: MNDO) - P/E: 9.81 3. Nortech Systems (NASDAQ: NSYS) - P/E: 5.69 4. Eltek (NASDAQ: ELTK) - P/E: 9.78 5. VirnetX Hldg (NYSE: VHC) - P/E: 1.3Viomi Technology Co's earnings per share for Q3 sits at 0.07, whereas in Q2, they were at 0.02. Viomi Technology Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.MIND C.T.I. has been featured as a value stock. MIND C.T.I.'s Q3 EPS sits at 0.07, which has not changed since last quarter (Q2). The company's most recent dividend yield sits at 11.0%, which has decreased by 0.36% from 11.36% last quarter.Nortech Systems's earnings per share for Q3 sits at -0.35, whereas in Q2, they were at -0.05. Nortech Systems does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.Eltek saw a decrease in earnings per share from 0.16 in Q2 to 0.14 now. Eltek does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.VirnetX Hldg saw a decrease in earnings per share from -0.08 in Q1 to -0.11 now. VirnetX Hldg does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.See more from Benzinga * Click here for options trades from Benzinga * ROCE Insights For Netflix * ROCE Insights For SmileDirectClub(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.