TipRanks

Morgan Stanley Storms Into the EV Space; Offers 2 Stocks to Buy

We are indeed living in interesting times – and in many ways, that’s a good thing. Take the automotive industry, for example. Technology is changing a rapid pace, and when it settles, it will dramatically change the way we drive. In 2030, our concept of ‘car’ will likely be unrecognizable to drivers from 1980. The biggest changes are coming from power systems and artificial intelligence. AI will bring autonomous tech to our cars, making self-driving vehicles a reality. But the power systems changes will hit us first. In fact, electric-drive vehicles are already on our roads, and electric vehicle (EV) companies are proliferating rapidly. For the moment, there are several roads to potential success in the EV market. Companies are working to position themselves as leaders in battery tech, or electric power trains, or to maximize their range and performance per charge. It’s a fact-paced industry environment, offering both opportunity and excitement for investors. Smart investors will look for companies capable of meeting scaling demands, once they have settled on marketable models. Investment firm Morgan Stanley has been watching the EV industry, seeking out innovative new design and production companies that are positioning themselves for gains as the market matures. The firm’s automotive analyst, Adam Jonas, has selected two stocks that investors should seriously consider buying into, saying “As we survey the EV/battery startup landscape, we are prioritizing highly differentiated technology and/or business models with a path to scale at a reasonable level of risk.” Opening up the TipRanks database, we’ve pulled up the details on both of Jonas’ picks to see whether they could be a good fit for your portfolio. Fisker (FSR) First up, Fisker, is based in Southern California, the epicenter of so much of our ground-breaking tech industries. Fisker’s focus is on solid-state battery tech, a growing alternative to the lithium-ion batteries that most EVs depend on. While more expensive that the older lithium-based systems, solid state batteries are safer and offer higher energy densities. Fisker has been busy patenting its moves into solid-state batteries, a sound strategy to lock in its advances in this field. For EVs, solid-state batteries offer faster charging times, longer range per charge, and potentially lower battery weight – all important factors in vehicle performance. Every car company needs a flagship model, and Fisker has the Ocean – an EV SUV with a mid-range price ($37,499) and a long-range power system (up to 300 miles). The vehicle features stylish design and room mounted solar panels to supplement the charging system, and is scheduled to enter serial production for the markets in 2022. The stylish design reflects the sensibilities of the company’s founder, Henrik Fisker, known for his work on the BMW Z8 and the Aston Martin DB9. Fisker entered the public markets through a SPAC merger agreement last fall. Since completing the SPAC transaction on October 29, shares in FSR are up 112%. Morgan Stanley’s Jonas is impressed by this company, describing the ‘value proposition of Fisker’ as “…design, time to market, clean sheet user experience and management expertise,” and saying that the 4Q22 launch schedule for the Ocean is likely to be met. “Fisker is specifically targeting the personal owned/passenger car business as opposed to commercial oriented end markets, where emotive design and user experience matter more. Additionally, the company wants to create an all-digital experience from the website to the app to the HMI in the car and continued customer engagement through its flexible lease product,” Jonas added. In line with his upbeat outlook on the company (and the car), Jonas rates Fisker an Overweight (i.e. Buy), and sets a $27 price target suggesting an upside of 42% for the coming year. (To watch Jonas’ track record, click here) Turning to the TipRanks data, we’ve found that Wall Street’s analysts hold a range of views on Fisker. The stock has a Moderate Buy analyst consensus rating, based on 7 reviews, including 4 Buys, 2 Holds, and 1 Sell. Shares are currently priced at $18.99, and the $21.20 average price target implies a one-year upside of ~12%. (See FSR stock analysis on TipRanks) QuantumScape (QS) Where Fisker is working on solid-state batteries in the context of vehicle production, QuantumScape is setting itself up as a leader in EV battery technology and a potential supplier of the next generation of battery and power systems for the EV market. QuantumScape designs and builds solid-state lithium-metal batteries, the highest energy density battery system currently available. The key advantages of the technology are in safety, lifespan, and charging times. Solid-state batteries are non-flammable; they last longer than lithium-ion batteries, with less capacity loss at the anode interface; and their composition allows faster charging, of 15 minutes or less to reach 80% capacity. QuantumScape is betting that these advantages will outweigh the technology’s current higher cost, and create a new standard in EV power systems. The company’s strongest tie to the EV production field is its connection with Volkswagen. The German auto giant put $100 million into QuantumScape in 2018, and an additional $200 million in 2020. The two companies are using their partnership to prepare for mass-scale development and production of solid-state batteries. Like Fisker, QuantumScape went public through a SPAC agreement late last year. The agreement, which closed on November 27, put the QS ticker in the public markets – where it promptly surged above $130 per share. While the stock has since slipped, it remains up 47% from its NYSE opening. For Morgan Stanley’s Jonas, involvement in QS stock comes with high risk, but also high potential reward. In fact, the analyst calls it, “The Biotech of Battery Development.” “We believe their solid state technology addresses a very big impediment in battery science (energy density) that, if successful, can create extremely high value to a wide range of customers in the auto industry and beyond. The risks of moving from a single layer cell to a production car are high, but we think these are balanced by the commercial potential and the role of Volkswagen to help underwrite the early manufacturing ramp,” Jonas explained. Noting that QS is a stock for the long haul, Jonas rates the shares an Overweight (i.e. Buy), and his $70 price target indicates confidence in an upside of 28% for one-year time horizon. Granted, not everyone is as enthusiastic about QS as Morgan Stanly. QS’s Hold consensus rating is based on an even split between Buy, Hold, and Sell reviews. The shares are priced at $54.64 and their recent appreciation has pushed them well above the $46.67 average price target. (See QS stock analysis on TipRanks) To find good ideas for EV 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 analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Benzinga

This Week In Cannabis: Tilray, Aphria, Sundial Go For A Ride; ETFs Pop With CNBS Advancing 99%

Recall last month, when users of Reddit’s popular WallStreetBets forum caused shares of GameStop Corp. (NYSE: GME) to spike by creating a massive short squeeze on the stock. The group also targeted AMC Entertainment Holdings Inc (NYSE: AMC). This forced short sellers to buy more in order to forestall massive losses, sending the stock price on a meteoric rise. Well, last week, their sights were set on cannabis. Swaggy Stocks — a website that tracks ticker sentiment on WallStreetBets — noticed Sundial Growers Inc (NASDAQ: SNDL), Tilray Inc. (NASDAQ: TLRY) and Aphria Inc. (NASDAQ: APHA) went along for the ride: Sundial jumped 79% on Wednesday Tilray spiked 51% Aphria grew 11%. This was short lived. By Thursday, Tilary fell 50%, Aphria dipped 36% and Sundial closed down 19%. On Friday, Tilray shares closed down 9.83%, while Sundial closed down 12.61%. Aphria was up slightly by 0.36%. View more earnings on ACB Benzinga Cannabis content is now available in Spanish on El Planteo. Other Cannabis Spikes ETFs popped. Over the last five trading days: The ETFMG Alternative Harvest ETF (NYSE: MJ): gained 70.73% The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): was up 59.18% The Cannabis ETF (NYSE: THCX): rose 84.6% The Amplify Seymour Cannabis ETF (NYSE: CNBS): advanced 99% The SPDR S&P 500 ETF Trust (NYSE: SPY) was up 5%. Regulatory Updates Cannabis reform legislation in Minnesota is poised to receive its first hearing in the House Commerce Finance and Policy Committee on Wednesday, Feb. 17. Cannabis business owners in Iowa may get a bit of financial relief if the Iowa Department of Public Health and the University of Iowa agree to slash medical marijuana patient and provider fees to $2,000 a year and set up an income tax deduction for expenses. Colorado awarded High Country Supply with its first recreational marijuana delivery permit. The company noted it expects to begin deliveries by March 1. Wisconsin Gov. Tony Evers will include marijuana legalization in his budget proposal to ensure “a controlled market and safe product are available for both recreational and medicinal users.” The program could yield around $165 million per year, starting fiscal 2023, he says. New Jersey Gov. Phil Murphy signed a bill that modifies penalties for magic mushroom possession. The new bill reduces conviction for those caught owning less than one ounce of psilocybin mushrooms from up to five years in prison to only six months. Fines of up to $35,000 would drop to $1,000. Previously, it was a third-degree crime. Now, less than one ounce is considered a disorderly person offense. South Dakota’s ballot results from Nov. 3 were deemed unconstitutional by a judge. The decision is in line with challenges made by Gov. Kristi Noem, who ordered a lawsuit to overturn the adult-use portion of the ballot results last month. Financings And M&A Auxly Cannabis Group Inc. (TSXV: XLY) (OTCQX: CBWTF) raised million as part of a share offering co-led by ATB Capital Markets Inc. and Cantor Fitzgerald Canada Corp. Auxly plans to use the collected net proceeds for working capital and other purposes. Beam, which produces 100% THC-free CBD products, finalized its million Series A funding round led by C2 Ventures. The startup is also backed by Obvious Ventures, Camwood Capital and athletes including Danica Patrick, Kevin Hayes and Brooks Laich. Several new investors such as The Yard Ventures, Litani Ventures and Carter Comstock also opted to join the effort. BevCanna Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF), a Vancouver manufacturer of cannabinoid-infused beverages, agreed to acquire Naturo Group Inc. Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) raised some CA$25.2 million (US$19.8 million) in funding via a private placement deal. Under the agreement, the New York cannabis company agreed to sell some 2.8 million of its common shares to Canaccord Genuity Corp. at CA$9 ($7.1) per share. Green Check Verified, a regtech company focused on compliant cannabis banking solutions and services, announced an over-subscribed .4 million convertible note financing. The round was led by Flatiron Venture Partners. Bravos Capital, Basecamp, Silverleaf Venture Partners and Fenway Summer also joined the effort. Cannabis CPG company Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) secured 0 million from an undisclosed institutional investor. Rumor is it’s BlackRock (NYSE: BLK). Click here to learn more. Jushi Holdings Inc. (CSE: JUSH) (OTCQB: JUSHF) priced its overnight marketed offering of a total of 6.5 million subordinate voting shares at a price of CA$10 per share, for total gross proceeds of CA$65 million (US$51 million). NBA legend Isiah Thomas has invested million into hemp and cannabis ingredient producer One World Pharma Inc. (OTCQB: OWPC). The former Detroit Pistons player-turned-entrepreneur, who was named CEO of One World Pharma last June, invested through his holding company, Isiah International. The funds will allow One World Phara to build a THC and CBD extraction facility in Colombia and subsidize future growth. Earnings Reports Aurora Cannabis (NYSE: ACB) reported total cannabis net revenue for the second quarter hovered around $70.3 million. That’s up 11% over the second quarter of 2020. Medical cannabis net revenue reached $38.9 million — up 42% versus the second quarter of 2020 thanks to a 562% increase in high margin international medical sales. The Edmonton, Canada-based cannabis producer experienced an adjusted EBITDA loss of $12.1 million. That’s an improvement of $53.1 million over the second quarter of 2020. Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC) saw net revenue spike by 23% year-over-year, to $153 million. The Smith Falls, Canada-based company reported a net loss of $829 million. Adjusted EBITDA was also a loss of $68 million versus a $97 million loss in the corresponding quarter of 2020. The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF) expects fourth-quarter revenue to reach $10.9 million, representing a year-over-year and sequential growth of 235% and 91%, respectively. According to a preliminary financial report, Canadian operations and sales accounted for $8.6 million of total gross revenue for the period. Canopy Rivers Inc. (PINK: CNPOF) reported total comprehensive income amounted to $82.2 million in the third quarter of this fiscal year, versus a loss of $40 million in the same period of last year. The Toronto-based company attributes the growth to an $11.4 million increase in the value of its TerrAscend Canada Inc. (CSE: TER) (OTCQX: TRSSF) investment. Turning Point Brands Inc. (NYSE: TPB) says net sales rose 31.2% year-over-year to $105.3 million in the fourth quarter. Adjusted EBITDA increased 80.9% to $25.8 million over the period. For the year, net sales amounted to $405.1 million. Net income increased by $19.3 million over the year. CbdMD Inc. (NYSE: YCBD) says e-commerce direct-to-consumer sales increased 41% year-over-year and 13% sequentially, to hit a record $9.7 million in the first quarter of fiscal 2021. The Charlotte, North Carolina-based company says net sales for the first three months of this year rose by 22% year-over-year to $12.3 million. The gross profit margin for the period went up to 72.2% from 63.5%. Operating expenses declined by 15% year-over-year and 2% sequentially to $10.7 million. Loss from operations was $1.8 million, down by 71% compared to last year’s corresponding quarter. Pyxus International Inc. (NYSE: PYX) revenues went up 4.5% year-over-year, to $379.6 million in the third quarter of the 2021 fiscal year. Adjusted EBITDA also improved, increasing 64.9% to $39.9 million, versus a positive adjusted EBITDA of $24.2 million for the corresponding quarter of last year. The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) generated roughly $21.7 million in gross revenue and $18.3 million in net revenue in the second quarter of fiscal 2021. Over the same period, recreational net revenue increased 70% to $12.7 million. Wholesale net revenue, including the international medical cannabis segment, rose 28% quarter-over-quarter to $5.6 million. Movers & Shakers Curaleaf Holdings Inc. (OTCQX: CURLF) announced an initiative called “Rooted In Good.” The Wakefield, Massachusetts-based company pledges to make at least 10% of its 2021 hires those who were previously saddled with cannabis-related offenses or criminal records. National Cannabis Roundtable (NCR) welcomed Kathleen Sebelius, the U.S. Department of Health and Human Services secretary under former President Barack Obama, to be honorary co-chair. For more, click here. More Headlines From The Week Valentine’s Day Gives Weed Brands A Loving Boost, With More Lucrative Years Ahead THC Chocolate To Eat Off Your Lover, And 7 Other Ganja Gift Ideas For Valentine’s Day High Tea Cannabis Partners With Tesla Portnoy Flips Sundial Growers For K Profit: ‘That’s How You Do It Boys’ Ikänik Farms: First Colombian Company To Export Psychoactive Cannabis Oil To Mexico Horizons Psychedelic Stock Index ETF, As Told By Its Fund Manager 5 Reasons Why C21 Investments Is Ready To Take On The Big Cannabis MSOs Avicanna Partners With Al Harrington To Promote Re+Play CBD Products Psychedelics Concierge ‘Zappy’ Says 2021 Is ‘The Year Of Plant Medicine’ See more from BenzingaClick here for options trades from BenzingaAurora Posts Q2 Earnings, Touts 562% Spike In ‘International Medical’ Cannabis Sales© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

TheStreet.com

Bearish Bets: 2 Downgraded Stocks You Should Consider Shorting This Week

Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side. Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, we zero in on five names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.

Financial Times

Bitcoin’s rise reflects America’s decline

The asset I’m referring to is gold priced in Weimar marks. In his newsletter Tree Rings, analyst Luke Gromen looked at the startling similarities in the volatility of gold in Weimar Germany and bitcoin today. Central bankers have over the past 10 years (or the last few decades, depending on where you put the marker) quashed price discovery in markets with low interest rates and quantitative easing.

Benzinga

Cramer Gives His Opinion On Zoom, AbbVie And More

On CNBC’s “Mad Money Lightning Round,” Jim Cramer said Zoom Video Communications, Inc. (NASDAQ: ZM) is good. It is still down a lot from its highs, but it is having a good quarter and it is a staple, he added. Cramer would be a buyer of DuPont de Nemours Inc (NYSE: DD) at its current price. He sold his position at $86 and he is buying back right here. Ageagle Aerial Systems Inc (NYSE: UAVS) is an exciting stock, but please recognize it as a spec, said Cramer. For an easier way to own drones, he is recommending Honeywell International Inc. (NYSE: HON). Cramer would buy the weakness in Affirm Holdings Inc (NASDAQ: AFRM). He said Max Levchin will do well with Affirm. You want to own General Electric Company (NYSE: GE), said Cramer. He sees the stock at $15 if it gets orders from Boeing. Travel has to start for Boeing orders to happen, he noted. AbbVie Inc (NYSE: ABBV) is a bargain, said Cramer. People are not using botox as they used to, but Cramer finds its migraine franchise amazing. With AT&T Inc. (NYSE: T), you are reaching for yield, but it doesn’t offer any peace of mind, said Cramer. NVIDIA Corporation (NASDAQ: NVDA) is maybe the crown jewel semiconductor company in the world, said Cramer. He would own the stock. See more from BenzingaClick here for options trades from BenzingaCramer Advises Viewers On XL Fleet, InterDigital And MoreMike Khouw Sees Unusual Options Activity In PayPal© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Barrons.com

Roku, Walmart, Palantir, and Other Stocks to Watch This Week

The market is closed on Monday. Then, earnings season continues with results from Walmart, Occidental, Palantir, Roku, CVS, Shopify, Newmont, and many more.

Benzinga

Green With Envy For Nvidia Stock: How Much $1,000 Invested 5 Years Ago Would Be Worth Today

Investors who have owned stocks since 2016 generally have experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return in the past five years is 131.9%. But there is no question some big-name stocks performed better than others along the way. Nvidia’s Big Run: One company that has been a solid investment in the past five years is semiconductor giant NVIDIA Corporation (NASDAQ: NVDA). Not only has Nvidia beat the market in the past five years, it has been one of the best investments on the planet. Nvidia produces graphics and video processors for gaming PCs, workstations, gaming consoles, servers and other applications. The rise of data centers, online and mobile gaming and even cryptocurrency mining created a boom in demand for Nvidia’s high-end chips in the past five years. At the beginning of 2016, Nvidia shares were trading at around $32. Shares initially dropped as low as $24.75 in early 2016 amid broad market weakness due to concerns over slowing economic growth in China. Nvidia rebounded to new all-time highs within a matter of weeks, and the stock was off to the races for the next three years. Nvidia hit $100 in late 2016, $200 in late 2017 and topped out at $292.26 in late 2018 before taking a breather. Related Link: ,000, 5 Years Later: GM Stock Takes The Slow Road, But Finds Its Way Concerns over slowing sales growth dropped Nvidia back to as low as $124.46 as investors took profits in the closing days of 2018. Then the rally resumed in mid-2019. Nvidia ultimately made it back to a pre-pandemic high of $316.32 in early 2020 prior to the March sell-off, which dropped the stock back down to $180.68. Nvidia In 2021, Beyond: Fortunately for Nvidia investors, a socially distanced environment is good news for graphics card demand. Nvidia shares ripped higher throughout the second half of 2020, reaching as high as $590.71 in early 2021. Nvidia investors who bought five years ago and held on have generated some staggering returns during one of the hottest market periods in recent history. In fact, $1,000 in Nvidia stock bought in 2016 would be worth about $23,100 today, assuming reinvested dividends. Looking ahead, analysts are expecting Nvidia to take another breather in the next 12 months. The average price target among the 35 analysts covering the stock is $600, suggesting just 1.7% upside from current levels. (Photo by Limor Zellermayer on Unsplash) See more from BenzingaClick here for options trades from BenzingaExclusive: Axon CEO Talks Insane Short-Seller Attack, Says ‘My Secretary Was A Mole’GameStop Analyst: Console Sales ‘Continue To Look Light’© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

TheStreet.com

Kass: Living in Cathie Wood’s World

In every stock market cycle there is a dominant investor who captures the market’s zeitgeist by incorporating and reflecting the ideas and beliefs of the times. But there is an inevitability of every market cycle that the optimistic expectations will be over exploited, valuations will go to extremes and a painful bust will follow.

Benzinga

Barron’s Latest Picks And Pans: COVID Booster Shot Plays, Defense M&As, Coty, Hologic, And More

This weekend’s Barron’s cover story offers a look at the 100 must sustainable companies. Other featured articles discuss the changing vaccine industry, the history of electric vehicles and consolidation in the defense sector. Also, the prospects for a medical-diagnostics company, a high-tech glass maker, a beauty products company and more. Cover story “The 100 Most Sustainable Companies” by Leslie P. Norton discusses how companies from Best Buy Co Inc (NYSE: BBY) to Verizon Communications Inc. (NYSE: VZ) scored in terms of taking care of all their stakeholders (employees, customers, communities and the environment) as well as investors in a tough year. Josh Nathan-Kazis’ “How the Pandemic Is Changing the Vaccine Industry” makes the case that annual COVID-19 booster shots are likely, which would lift sales. Furthermore, the crisis has enabled biotech upstarts to compete with the giants. See what that could mean for AstraZeneca plc (NASDAQ: AZN), Novavax, Inc. (NASDAQ: NVAX) and others. In “Hologic Stock Is Cheap. Time to Buy,” Evie Liu points out that medical-diagnostics company Hologic, Inc. (NASDAQ: HOLX) is a COVID-19-beneficiary but also a business that will benefit as life returns to normal. Moreover, the stock has gained 55% during the past year, but its valuation has dropped as well. Why it is time to buy, according to Barron’s. Corning Incorporated (NYSE: GLW) has been around since 1851 and now serves a diverse set of markets, from smartphones to auto manufacturing to vaccine vials. So says “Corning Is Filling Its Glass With New Ideas” by Eric J. Savitz. Find out why Barron’s believes this stock deserves more attention. In Kenneth G. Pringle’s “Electric Vehicles Were a Nonstarter—Until Tesla Came Along,” the focus is on how the road to creating a viable electric car like those from Tesla Inc (NASDAQ: TSLA) has been long and bumpy. The article shows how EVs went from an elusive dream to reality over the past 100 years. “Coty Stock Tumbled After Earnings. It’s Time to Buy” by Ben Levisohn explains that Coty Inc (NYSE: COTY), the parent company of Cover Girl, Kylie, Max Factor and other well-known beauty brands, has had too much debt, too little growth and too many CEOs since the start of 2020. Yet, the stock now looks poised for a turnaround. See also: Benzinga’s Weekly Bulls And Bears: GameStop, Intel, Lyft, Tilray, Twitter And More Hot money going into the cannabis sector is making a hash of fundamental analysis, according to Jack Hough’s “Pot Stocks Are Flying High. Here Are 4 on Firm Footing.” Find out where Barron’s believes the opportunities lie. Does Tilray Inc (NASDAQ: TLRY) make the cut? Innovative Industrial Properties Inc (NYSE: IIPR)? In “How to Benefit From Tech’s Run, Without Big Tech Exposure,” Eric J. Savitz examines how, after the dot-com bubble burst, this renowned portfolio manager had the worst mutual fund in America. Two decades later, the fund is thriving, thanks to small-cap tech stocks such as Silicom Ltd. (NASDAQ: SILC). Carleton English’s “Cubic Buyout Could Signal More Deals for Defense Contractors” says that Cubic Corporation (NYSE: CUB) has agreed to a $2.8 billion buyout, the latest in a string of mergers and acquisitions in the defense sector. Who could be next? Aerojet Rocketdyne Holdings Inc (NYSE: AJRD)? FLIR Systems, Inc. (NASDAQ: FLIR)? Also in this week’s Barron’s: Methodology for the Barron’s 2021 ranking of most sustainable companies How today’s stock mania differs from 1999’s, but that might not matter Whether the reasons to be hopeful about the stock market are also reasons to worry How much U.S. minimum wages hikes have cost businesses so far How much rising U.S. interest rates are worrying emerging markets Whether emerging markets will outperform after the pandemic Why companies should disclose their corporate and social impacts, just like their profits Who says the pandemic could be “effectively” over by April Who could get $12,800 in relief under Biden’s stimulus plan The biggest questions for the pandemic-year tax season At the time of this writing, the author had no position in the mentioned equities. Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter. Photo by Markus Spiske on Unsplash. See more from BenzingaClick here for options trades from BenzingaThe Past Week’s Notable Insider Buys: Biotech IPOs, Curiositystream, Greenbrier And MoreBenzinga’s Weekly Bulls And Bears: GameStop, Intel, Lyft, Tilray, Twitter And More© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Reuters

Investors eye shares of hotels, cruise lines as U.S. vaccinations pick up

Investors are watching next week’s earnings reports from hotels, cruise lines and other businesses that have been hard hit by COVID-19 for indications of which companies could be the first to bounce back when the pandemic recedes. For nearly a year, money managers have largely looked past earnings in the travel and leisure sector, where coronavirus-fueled lockdowns and travel restrictions battered companies’ businesses and crushed their stock prices: shares of Marriott and Norwegian Cruise Lines, for example, are down 12% or more in the last year, compared to a nearly 17% gain for the S&P 500 through Friday afternoon. Next week’s numbers, however, may offer clues on which companies are in the best financial health and would benefit the most from economic reopening, while also allowing investors to better gauge where companies should be valued.