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The Zacks Analyst Blog Rowe Price, Duke Energy, Philip Morris International and Regions Financial
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For Immediate Releases
Chicago, IL – October 30, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Rowe Price Group Inc. (TROW - Free Report) , Duke Energy Corp. (DUK - Free Report) , Philip Morris International Inc. (PM - Free Report) and Regions Financial Corp. (RF - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Buy 4 High-Yield Large-Cap Dividend Stocks to Beat Volatile Markets
U.S. stock markets are expected to close 2024 on an impressive note after an astonishing bull run in 2023. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 12.4%, 22.8% and 25.7%, respectively.
Historically, September and October are known as the worst-performing months on Wall Street. This year, in September, the Dow, the S&P 500 and the Nasdaq Composite — were up 1.9%, 2%, and 2.7%, respectively. The broad-market benchmark — the S&P 500 — posted its first September in green since 2019. In October, with just three trading days left, these three major indexes are all trading in the green.
However, this year’s November may remain volatile due to three reasons — U.S. Presidential Election, the Fed’s FOMC meeting and geopolitical conflicts in the Middle-East. In order to remain safe, it should be prudent to invest in large-cap stocks with healthy financial conditions, which are regular dividend payers.
Here we recommend four such stocks with a favorable Zacks Rank. These are — T. Rowe Price Group Inc., Duke Energy Corp., Philip Morris International Inc. and Regions Financial Corp.
3 Market-Determining Factors in November
First, Nov 5, is the date for U.S. Presidential election. This year Democrat candidate and incumbent Vice President Kamala Harris and Republican candidate former president Donald Trump are engaged in a close contest. The final result may be delayed like in 2020 due to various election-related legal issues, leading to market volatility.
Second, the Fed’s next FOMC meeting is scheduled on Nov 6 and 7. The Fed reduced the benchmark interest rate by an aggressive 50 basis points in September and indicated another 50-basis point rate cut this year. Just after the last FOMC meeting, market participants were hopeful for a consecutive 50-basis point cut in November,
At present, CME FedWatch shows an overwhelming 96.6% probability of just a 25-basis point reduction in Fed fund rate in November. If the central bank refrains from cutting rate in November or the post-FOMC meeting statement by Fed Chairman Jerome Powell contains any hawkish comment, regular trading may be disturbed.
Third, the geopolitical conflicts in the Middle East, especially between Izrael on one side and Iran, Lebanon and Palestine on the other side have flared up recently. Further escalation may result in volatility in crude oil prices. This will create economic turbulence globally and in the United States.
4 High-Yielding Large-Cap Stocks to Buy
At his stage, investment in big corporates with regular dividend payments and a favorable Zacks Rank should be fruitful. In case of the market’s downturn, dividends will act as a regular income stream and if the market’s northbound journey remains intact, the favorable Zacks Rank will capture the stocks’ upside potential.
T. Rowe Price Group’s diverse business model ensures sustainable earnings. Accordingly, TROW’s diversified asset under management (AUM) across various asset classes, client bases, and geographies offers support. TROW’s AUM balance witnessed a CAGR of 4.6% over the past four years (2019-2023), with the rising trend continuing in the first half of 2024.
Also, for the five years that ended June 30, 2024, 63% of T. Rowe Price Group U.S. mutual funds AUM outperformed the Morningstar median, whereas 49% outperformed the passive peer median. A strong brand, consistent investment track record, and decent business volumes are expected to keep supporting AUM growth in the upcoming period. We project TROW’s AUM to witness a three-year (ending 2026) CAGR of 9.4%.
T. Rowe Price Group has an expected revenue and earnings growth rate of 11.1% and 20.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days. TROW has a current dividend of 4.46%.
Duke Energy Corp.
Duke Energy remains a premier utility service provider that focuses on expanding its scale of operations and implementing modern technologies at its facilities. During the 2024-2028 period, DUK plans to invest $73.4 billion to strengthen its grid and expand its renewable energy portfolio. As of Dec. 31, 2023, DUK reduced its carbon emissions by 48% from the 2005 level.
As part of its clean energy portfolio expansion strategy, DUK is investing heavily in constructing generation facilities that produce far lesser CO2 emissions per unit of electricity generated than coal. To this end, in July 2024, Duke Energy Carolinas and Duke Energy Progress reached a comprehensive settlement to advance the potential for 1,834 MW of pumped storage hydro at its Bad Creek II facility by 2034.
Duke Energy has an expected revenue and earnings growth rate of 4.5% and 7.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days. DUK has a current dividend of 3.57%.
Philip Morris International Inc.
Philip Morris International has been benefiting from the robust momentum in smoke-free products, IQOS and ZYN, along with combustible pricing. Higher pricing variance and solid cost efforts are aiding PM’s bottom line.
The consistent success of IQOS and the noteworthy economics of ZYN have further solidified PM’s position, keeping it well-placed to become a majority smoke-free company by 2030. These upsides encouraged management to raise PM’s guidance for 2024, wherein net revenues are likely to increase 7.5-9% on an organic basis.
Philip Morris International has an expected revenue and earnings growth rate of 6.7% and 8.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last seven days. PM has a current dividend of 4.16%.
Regions Financial Corp.
Regions Financial decent loan growth, along with the Federal Reserve’s interest rate cuts, will stabilize funding costs and support the NII growth. Given the strong liquidity position, RF’s capital distribution activities seem sustainable. Additionally, strategic acquisitions support RF in revenue diversification. Further, RF’s investments in talent and technology will support growth in the upcoming period.
Regions Financial has an expected revenue and earnings growth rate of 5.4% and 9.2%, respectively, for next year. The Zacks Consensus Estimate next-year earnings has improved 0.9% over the last seven days. RF has a current dividend of 4.26%.
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Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Rowe Price, Duke Energy, Philip Morris International and Regions Financial
For Immediate Releases
Chicago, IL – October 30, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Rowe Price Group Inc. (TROW - Free Report) , Duke Energy Corp. (DUK - Free Report) , Philip Morris International Inc. (PM - Free Report) and Regions Financial Corp. (RF - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Buy 4 High-Yield Large-Cap Dividend Stocks to Beat Volatile Markets
U.S. stock markets are expected to close 2024 on an impressive note after an astonishing bull run in 2023. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 12.4%, 22.8% and 25.7%, respectively.
Historically, September and October are known as the worst-performing months on Wall Street. This year, in September, the Dow, the S&P 500 and the Nasdaq Composite — were up 1.9%, 2%, and 2.7%, respectively. The broad-market benchmark — the S&P 500 — posted its first September in green since 2019. In October, with just three trading days left, these three major indexes are all trading in the green.
However, this year’s November may remain volatile due to three reasons — U.S. Presidential Election, the Fed’s FOMC meeting and geopolitical conflicts in the Middle-East. In order to remain safe, it should be prudent to invest in large-cap stocks with healthy financial conditions, which are regular dividend payers.
Here we recommend four such stocks with a favorable Zacks Rank. These are — T. Rowe Price Group Inc., Duke Energy Corp., Philip Morris International Inc. and Regions Financial Corp.
3 Market-Determining Factors in November
First, Nov 5, is the date for U.S. Presidential election. This year Democrat candidate and incumbent Vice President Kamala Harris and Republican candidate former president Donald Trump are engaged in a close contest. The final result may be delayed like in 2020 due to various election-related legal issues, leading to market volatility.
Second, the Fed’s next FOMC meeting is scheduled on Nov 6 and 7. The Fed reduced the benchmark interest rate by an aggressive 50 basis points in September and indicated another 50-basis point rate cut this year. Just after the last FOMC meeting, market participants were hopeful for a consecutive 50-basis point cut in November,
At present, CME FedWatch shows an overwhelming 96.6% probability of just a 25-basis point reduction in Fed fund rate in November. If the central bank refrains from cutting rate in November or the post-FOMC meeting statement by Fed Chairman Jerome Powell contains any hawkish comment, regular trading may be disturbed.
Third, the geopolitical conflicts in the Middle East, especially between Izrael on one side and Iran, Lebanon and Palestine on the other side have flared up recently. Further escalation may result in volatility in crude oil prices. This will create economic turbulence globally and in the United States.
4 High-Yielding Large-Cap Stocks to Buy
At his stage, investment in big corporates with regular dividend payments and a favorable Zacks Rank should be fruitful. In case of the market’s downturn, dividends will act as a regular income stream and if the market’s northbound journey remains intact, the favorable Zacks Rank will capture the stocks’ upside potential.
We have narrowed our search to four high-yielding large-cap stocks. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
T. Rowe Price Group Inc.
T. Rowe Price Group’s diverse business model ensures sustainable earnings. Accordingly, TROW’s diversified asset under management (AUM) across various asset classes, client bases, and geographies offers support. TROW’s AUM balance witnessed a CAGR of 4.6% over the past four years (2019-2023), with the rising trend continuing in the first half of 2024.
Also, for the five years that ended June 30, 2024, 63% of T. Rowe Price Group U.S. mutual funds AUM outperformed the Morningstar median, whereas 49% outperformed the passive peer median. A strong brand, consistent investment track record, and decent business volumes are expected to keep supporting AUM growth in the upcoming period. We project TROW’s AUM to witness a three-year (ending 2026) CAGR of 9.4%.
T. Rowe Price Group has an expected revenue and earnings growth rate of 11.1% and 20.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days. TROW has a current dividend of 4.46%.
Duke Energy Corp.
Duke Energy remains a premier utility service provider that focuses on expanding its scale of operations and implementing modern technologies at its facilities. During the 2024-2028 period, DUK plans to invest $73.4 billion to strengthen its grid and expand its renewable energy portfolio. As of Dec. 31, 2023, DUK reduced its carbon emissions by 48% from the 2005 level.
As part of its clean energy portfolio expansion strategy, DUK is investing heavily in constructing generation facilities that produce far lesser CO2 emissions per unit of electricity generated than coal. To this end, in July 2024, Duke Energy Carolinas and Duke Energy Progress reached a comprehensive settlement to advance the potential for 1,834 MW of pumped storage hydro at its Bad Creek II facility by 2034.
Duke Energy has an expected revenue and earnings growth rate of 4.5% and 7.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days. DUK has a current dividend of 3.57%.
Philip Morris International Inc.
Philip Morris International has been benefiting from the robust momentum in smoke-free products, IQOS and ZYN, along with combustible pricing. Higher pricing variance and solid cost efforts are aiding PM’s bottom line.
The consistent success of IQOS and the noteworthy economics of ZYN have further solidified PM’s position, keeping it well-placed to become a majority smoke-free company by 2030. These upsides encouraged management to raise PM’s guidance for 2024, wherein net revenues are likely to increase 7.5-9% on an organic basis.
Philip Morris International has an expected revenue and earnings growth rate of 6.7% and 8.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last seven days. PM has a current dividend of 4.16%.
Regions Financial Corp.
Regions Financial decent loan growth, along with the Federal Reserve’s interest rate cuts, will stabilize funding costs and support the NII growth. Given the strong liquidity position, RF’s capital distribution activities seem sustainable. Additionally, strategic acquisitions support RF in revenue diversification. Further, RF’s investments in talent and technology will support growth in the upcoming period.
Regions Financial has an expected revenue and earnings growth rate of 5.4% and 9.2%, respectively, for next year. The Zacks Consensus Estimate next-year earnings has improved 0.9% over the last seven days. RF has a current dividend of 4.26%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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Zacks Investment Research
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support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.