Asian markets cautious after Trump cancels North Korea summit

Asian markets were mixed in cautious early trading Friday, after President Donald Trump canceled his upcoming summit with North Korean leader Kim Jong Un.

Japan��s Nikkei NIK, +0.11% � was off 0.1%, after initially dropping 0.5%, as the dollar JPYUSD, -0.294770% � pushed above 楼109.50 to session highs from 楼109.30. Commodity-related names were leading the way lower for Japanese stocks as they were poised to notch their first down week in two months. The marine-transportation sector was off 1.6%, the weakest performer in the Topix. Mining was off 1.1% following a sizable drop overnight in oil prices LCON8, -0.18% �. But that had the airline sector up 1%. Meanwhile, auto stocks were extending Thursday��s sharp selloff, with Honda 7267, -0.68% � and Toyota 7203, -1.25% � off nearly 1% more.

Hong Kong stocks started modestly weaker, with the Hang Seng Index HSI, -0.26% � off 0.4%, with energy stocks again a sore spot.

After a strong rebound Thursday, Singapore��s Straits Times Index STI, -0.03% � was down 0.3%, on the way to a second-straight weekly decline, which hasn��t happened since early February. Telecom stocks were down, with StarHub CC3, -1.89% � off nearly 1%. Weakness was also seen in bank and property names.

Malaysian stocks FBMKLCI, +1.04% � started strongly higher after two days of heavy selling.

Stocks in South Korea SEU, +0.01% � and Taiwan Y9999, +0.23% � were up modestly, while Australian stocks XJO, -0.06% � dipped lower.

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Comment Related Topics Asia Markets China Japan Australia Singapore Foreign Investment Quote References NIK +23.94 +0.11% JPYUSD -0.000027 -0.294770% LCON8 -0.14 -0.18% 7267 -24.00 -0.68% 7203 -90.00 -1.25% HSI -78.81 -0.26% STI -1.08 -0.03% CC3 -0.04 -1.89% FBMKLCI +18.39 +1.04% SEU +0.27 +0.01% Y9999 +24.96 +0.23% XJO -3.80 -0.06% Show all references MarketWatch Partner Center Most Popular GE��s stock suffers worst day in 9 years after CEO John Flannery starts talking If its ratings don��t really matter, why is Netflix suddenly canceling so many shows? Why early retirement is all it��s cracked up to be The fate of the S&P hangs in the balance �� and these 3 factors should decide it What to do in your 50s to build wealth for your retirement Community Guidelines �� FAQs BACK TO TOP MarketWatch Site Index Topics Help Feedback Newsroom Roster Media Archive Premium Products Mobile Company Company Info Code of Conduct Corrections Advertising Media Kit Advertise Locally Reprints & Licensing Your Ad Choices Dow Jones Network WSJ.com Barron's Online BigCharts Virtual Stock Exchange Financial News London WSJ.com Small Business realtor.com

5 Cannabis Stocks That Have Been Outperforming

A slew of positive headlines in recent weeks seems to have turned the tide for cannabis. Between Senate Minority Leader Chuck Schumer announcing plans to introduce legislation that would decriminalize cannabis on a federal level, and Michigan adding recreational cannabis to its November ballot, things have been looking up for the industry.

Of course with a market as speculative as cannabis, there are always going to be outperformers and underperformers, regardless of the macro picture. That said, let’s take a look at some of the recent outperformers.

The charts below are courtesy of VantagePoint, a platform that uses Artificial Intelligence and machine learning to forecast future price movements 1-3 days in advance with up to 86 percent accuracy. The blue line represents a predictive moving average that shows what’s going to happen three days in advance, and the black line is a simple 10-day moving average. A crossover of the blue line over the black line indicates a bullish signal from the software, and vice versa for a bearish signal.

iAthus Capital Holdings, Inc. (OTC: ITHUF)

Up 94 percent YTD

The cannabis dispensary operator saw a 615 percent increase in revenue in 2017 while also expanding its operations to New York and Florida, and investors have certainly rewarded the stock. On a technical basis, ITHUF has broken above $4 for the first time since it gapped down on February 2. Though the stock has seen some red days of late, the upward trend still appears to be intact.

GW Pharmaceuticals (NASDAQ: GWPH)

Up 18 percent YTD

Arguably the most well-known cannabis play, GWPH has exploded in the last month to all-time highs following a crossover to the upside on April 12. Though the trend came close to ending in early May, the fact that the two moving averages have not crossed over again tells us that the stock is still in an uptrend.

Innovative Industrial Properties, Inc. (NYSE: IIPR)

Up 3.5 percent YTD

Like a lot of cannabis stocks, IIPR sold off in January and February. Unlike most of them, it has gained back all its recent losses.

Though VantagePoint's two moving averages crossed over during the second week of May—indicating a downtrend—the two lines appear to have crossed over again, signalling the beginning of an uptrend. 

MedReleaf Corp.(OTC: MEDFF)

Up 0.7 percent YTD

Like the others on this list, cannabis producer MedReleaf was very strong the last three weeks of April. The stock looks to have hit some technical resistance around the $20 handle, but according to VantagePoint’s indicators, the uptrend is still alive thanks to a rising blue predicted moving average and mostly green Neural Index.

AmeriCann, Inc. (OTC: ACAN)

Flat YTD

Despite being flat in 2018, Americann has been in a strong uptrend since April 5, more than doubling in the six weeks since. Despite some red days sprinkled in, the uptrend has only gotten stronger according to VantagePoint

The cannabis sector is one of the most volatile sectors in the equities market, and a stream of upcoming legislation decisions promises even more volatility. This is not a sector for the faint of heart, and many cannabis plays still have to prove viable business models. But for some companies, there are trades to be made.

VantagePoint is a content partner of Benzinga. For a free live demo or market forecast, click here

Is Walmart (WMT) Stock Cheap Right Now?

Shares of Walmart (WMT ) opened higher on Monday just a few trading days after the company reported solid first-quarter earnings results. With that said, Walmart’s stock price had sunk over the last few months, which means now might be a great time to consider buying the retail giant at a relatively cheap price.

Walmart’s overall revenues climbed roughly 4.4% from the year-ago period to hit $122.7 billion in the first quarter, with comp sales up 2.1%. Meanwhile, the company’s adjusted earnings surged by 14% to reach $1.14 per share, which also topped the Zacks Consensus Estimate of $1.12 per share.

Investors should also have been pleased to see that Walmart’s U.S. e-commerce sales popped by 33%, despite increased competition from Amazon (AMZN ) and other online sellers. Now, let’s take a look at Walmart’s price movement before we dive into why the company’s current valuation looks rather enticing.

Recent Price Movement

Walmart stock was up roughly 8% over the last year before Monday’s gains. However, shares of Walmart had sunk 9.8% during the last 12 weeks and 4.8% over the last four weeks as investors reacted negatively to the company’s slower fourth-quarter e-commerce growth.   

Furthermore, shares of Walmart sat at their 52-week high of $109 per share in late January. Walmart stock opened Monday at $84.14 per share, which means shares of Walmart are much cheaper than they were to start the year just based on price alone.

Still, investors need to know a little more before they can say that Walmart stock is currently offering a ton of value.

Valuation

Coming into Monday, Walmart stock was trading at 16.9X forward 12-months earnings estimates. Walmart stock has traded as high as 23.8X over the past year, with its median resting at 17.9X. The company is also currently trading just slightly above its year-long low of 16.4X, which it rested at briefly in early July of last year.

Walmart stock is also trading directly in line with the S&P 500’s average of 16.9X. Furthermore, the company compares favorably to the “Retail – Supermarkets” industry’s current average forward P/E ratio of 16.3. This industry includes the likes of Kroger (KR ) other large U.S. grocery chains.

 

Based on the last year alone, investors should be able to say with some conviction that Walmart stock is rather attractive at its current valuation, and pretty cheap compared to where it has traded recently.

Growth Outlook

Lastly, it is worth considering Walmart’s current growth prospects. The company is projected to see its second-quarter earnings climb by 12.9% to touch $1.22 per share, based on our current Zacks Consensus Estimates. For the full-year, Walmart is expected to hit $4.86 per share, which would mark a nearly 10% surge from a year ago.

Meanwhile, Walmart’s revenues are only projected to pop by 1.8% in Q2, while full-year revenues are projected to climb by 2.08% to reach $510.74 billion. Investors might be a bit less pleased to see these top-line projections, but it is worth considering just how hard it is to post massive top-line growth when the company is expected to pull in over $510 billion.

Our 2% full-year growth estimate would mean Walmart expanded its top line by $10 billion.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Tetra Tech, Inc. (TTEK) Expected to Post Quarterly Sales of $541.79 Million

Equities research analysts predict that Tetra Tech, Inc. (NASDAQ:TTEK) will announce sales of $541.79 million for the current fiscal quarter, Zacks reports. Five analysts have issued estimates for Tetra Tech’s earnings. The lowest sales estimate is $538.54 million and the highest is $545.00 million. Tetra Tech reported sales of $498.48 million in the same quarter last year, which would suggest a positive year over year growth rate of 8.7%. The firm is expected to report its next earnings results on Wednesday, August 1st.

On average, analysts expect that Tetra Tech will report full year sales of $2.20 billion for the current fiscal year, with estimates ranging from $2.17 billion to $2.21 billion. For the next year, analysts anticipate that the company will report sales of $2.30 billion per share, with estimates ranging from $2.28 billion to $2.31 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side research analysts that that provide coverage for Tetra Tech.

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Tetra Tech (NASDAQ:TTEK) last posted its quarterly earnings data on Wednesday, May 2nd. The industrial products company reported $0.54 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.51 by $0.03. Tetra Tech had a net margin of 4.83% and a return on equity of 14.38%. The company had revenue of $532.79 million during the quarter, compared to analysts’ expectations of $509.14 million. During the same period in the prior year, the company posted $0.48 earnings per share. Tetra Tech’s revenue for the quarter was up 4.1% compared to the same quarter last year.

Several equities research analysts have recently weighed in on the stock. Canaccord Genuity reiterated a “buy” rating and set a $60.00 price objective on shares of Tetra Tech in a research report on Thursday, February 1st. BidaskClub upgraded shares of Tetra Tech from a “hold” rating to a “buy” rating in a research report on Friday, May 11th. ValuEngine upgraded shares of Tetra Tech from a “hold” rating to a “buy” rating in a research report on Tuesday, May 8th. Boenning Scattergood reiterated a “buy” rating and set a $65.00 price objective on shares of Tetra Tech in a research report on Thursday, March 15th. Finally, Zacks Investment Research raised shares of Tetra Tech from a “hold” rating to a “buy” rating and set a $59.00 target price on the stock in a research note on Friday, February 2nd. Three investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $56.83.

In related news, SVP Mark A. Rynning sold 660 shares of the stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $50.44, for a total transaction of $33,290.40. Following the transaction, the senior vice president now directly owns 3,358 shares of the company’s stock, valued at $169,377.52. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director J Kenneth Thompson sold 8,000 shares of the stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $50.01, for a total transaction of $400,080.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 131,581 shares of company stock worth $6,733,486. 3.40% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of TTEK. Prime Capital Investment Advisors LLC bought a new position in Tetra Tech during the fourth quarter worth $111,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in shares of Tetra Tech by 50.1% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,054 shares of the industrial products company’s stock valued at $147,000 after buying an additional 1,019 shares in the last quarter. We Are One Seven LLC bought a new position in shares of Tetra Tech in the fourth quarter valued at $184,000. Global X Management Co. LLC lifted its stake in shares of Tetra Tech by 75.2% in the fourth quarter. Global X Management Co. LLC now owns 3,985 shares of the industrial products company’s stock valued at $192,000 after buying an additional 1,710 shares in the last quarter. Finally, CAPROCK Group Inc. bought a new position in shares of Tetra Tech in the fourth quarter valued at $200,000. 87.35% of the stock is currently owned by institutional investors and hedge funds.

Shares of TTEK traded up $0.35 during trading hours on Tuesday, hitting $53.20. 426,430 shares of the stock were exchanged, compared to its average volume of 271,696. Tetra Tech has a fifty-two week low of $39.95 and a fifty-two week high of $53.40. The company has a quick ratio of 2.05, a current ratio of 2.05 and a debt-to-equity ratio of 0.49. The stock has a market cap of $2.96 billion, a PE ratio of 24.98, a price-to-earnings-growth ratio of 1.52 and a beta of 1.00.

The business also recently announced a quarterly dividend, which will be paid on Friday, June 1st. Investors of record on Wednesday, May 16th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Tuesday, May 15th. This is a positive change from Tetra Tech’s previous quarterly dividend of $0.10. This represents a $0.48 annualized dividend and a yield of 0.90%. Tetra Tech’s dividend payout ratio is currently 22.54%.

Tetra Tech Company Profile

Tetra Tech, Inc provides consulting and engineering services worldwide. It operates through two segments, Water, Environment and Infrastructure (WEI); and Resource Management and Energy (RME). The WEI segment offers early data collection and monitoring, data analysis and information technology, science and engineering applied research, engineering design, construction management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services.

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