Analysts’ price targets
Analysts’ average price target of $17.83 for AES (AES) implies a ~2% downside over the next year based on its current price of $18.15. Morgan Stanley raised its price target for AES from $16 to $16.50 last week. Of the ten analysts tracking AES, four recommend “buy,” five recommend “hold,” and one recommends “sell.”
Peers’ price targets
Analysts’ target price of $46.50 for NRG Energy (NRG) stock implies a ~12% upside based on its current price of $41.88. Of the ten analysts tracking NRG Energy, four recommend “buy,” four recommend “strong buy,” two recommend “hold,” and none recommend “sell.”
AES looks like it could be turning around after its better-than-expected 2018 earnings. However, the stock rally could halt if AES delivers subpar quarterly earnings. Its dividend profile looks attractive, with a strong yield and growth. Although its debt could be a concern, AES seems focused on reducing it. For more on utilities, read These Three Utility Stocks Have Delivered Maximum Long-Term Returns.
Micron was the hardest hit by the semiconductor downturn due to weak economic demand arising from the US-China trade war.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.