Leisure Travel Lifts Southwest Revenue Above Wall Street Views

July
23, 2021

4 min read

This story originally appeared on MarketBeat

Shares of Southwest Airlines (NYSE: LUV) finished lower Thursday after the Dallas-based company reported earnings of $0.57 per share on revenue of $4 billion. Revenue beat analysts’ views.
The stock closed at $51.29, down $1.84 or 3.46%. 
In its earnings release, Southwest noted that net income of $348 million was “driven by a $724 million offset of salaries, wages, and benefits expenses related to the receipt of Payroll Support Program (PSP) proceeds,” part of the federal CARES Act designed to help airlines keep employees on the books during the pandemic.
Excluding that item, the company reported a second-quarter loss of $0.35 per share. 
Even so, the company’s metrics clearly show travel is on the rebound. 
In a statement, Southwest CEO Gary Kelly said, “Second quarter 2021 marked an important milestone in the pandemic recovery as leisure travel demand surged.”
He added,” While the rapid ramp-up in June travel demand provided stability to our financial position, it has impacted our operations following a prolonged period of depressed demand due to the pandemic. Therefore, we are intensely focused on improving our operations as we restore our network to meet demand.”  
While operating revenues are still below 2019 levels, the last meaningful comparison, Kelly said monthly operating revenue trends improved sequentially during the quarter. 
Rebound To 2019 Levels
While Southwest has noted an improvement in business travel revenue, vacationers are out in full force, driving the quarterly uptick. 
Significantly, Kelly noted, “Leisure passenger traffic in June 2021 rebounded above June 2019 levels, while passenger fares were comparable with June 2019.”
Based on current bookings, Southwest expects leisure passenger traffic and fares this month to trend higher than in July 2019. 
Rising fuel costs have been a headwind, and the company expects that to continue in the current quarter. 
Nonetheless, Southwest guided toward profitability in the third and fourth quarters of this year, with the caveat that further Covid-driven economic slowdowns could affect business. 
“Should the pandemic negatively affect our current trends, we are prepared to manage through it,” Kelly said. 
The company is designating 55 aircraft to serving 18 new cities, as well as 37 aircraft to Hawaii by the end of this year. It’s also planning on committing more aircraft, including new planes, in 2022 to restore most pre-pandemic routes. Kelly said he anticipates that “2022 will be another transition year in the pandemic recovery.” 
American Airlines Also Beat Views
American Airlines (NASDAQ: AAL) also reported a second-quarter profit, helped by the Payroll Support Program. 
The company earned $0.03 per share on revenue of $7.48 billion, up 361% from the year-earlier quarter. Revenue beat forecasts. Adjusting for items such as the federal support, American reported a quarterly loss of $1.69 per share. 
American also cited an increase in leisure travel. 
To meet the increased demand, both airlines are recalling flight crews and other employees who were on voluntary leave, and staffing up before holiday travel kicks in later this year. 
Southwest shares have been correcting since mid-March. The stock attempted to fly above a buy point at $26.09, but couldn’t get any altitude above $26.04. That area just above $26 remains the level of resistance to clear, once a new uptrend gets underway. 
Despite travel restrictions and general reluctance to fly since March 2020, Southwest is up 13.99% year-to-date and 58.03% over the past 12 months. 
As a whole, airline industry stocks have essentially been in freefall since mid-March, around the same time Southwest began correcting. As a group, airline stocks have been trading lower for the past four months. 
The top-performing airline, in terms of price appreciation, is Brazil-based Azul (NYSE: AZUL). The mid-cap is up 13.63% in the past three months, despite the same declining revenue and earnings found in the rest of its industry. It’s due to report quarterly results in two weeks. 
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3 Bullish Chart Patterns for the Long-Term Investor

It’s more common for long-term investors to rely on fundamental or quantitative analysis—or some combination thereof. But that doesn’t mean technical…

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July
23, 2021

5 min read

This story originally appeared on MarketBeat

It’s more common for long-term investors to rely on fundamental or quantitative analysis—or some combination thereof. But that doesn’t mean technical analysis can’t also be used to guide a buy-and-hold strategy.
One of the most popular way to use technical analysis is to look at moving averages. These trend lines smooth out the path a stock has taken and can be a valuable indication of where it is headed.
Then there are classic chart patterns that point to where a stock may be headed based on the convergence of multiple trend lines or other common charts ‘shapes’. At the long-term end of the spectrum, such patterns typically form during a period of at least nine months—and sometimes up to two years.
Let’s take a look at three stocks that have recently formed bullish chart patterns. In combination with healthy fundamental backdrop, these names look worth hanging onto for the long haul.
Is FedEx Stock a Buy Under $300?
Last July, the 50-day moving average line for FedEx (NYSE:FDX) crossed over the 200-day moving average. The bullish long-term crossover was preceded by a heavy volume gap-up event on July 1st that offered the first clue that the shipping leader was on the road to recovery.
Since then, FedEx has largely received support at the 50-day line except for an early 2021 dip that it recovered nicely from. Over the last couple months, the stock has taken a breather from setting an intraday record high of $319.90 on May 27th. The sideways pattern of consolidation is likely the formation of the next base from which a fresh record high will be reached.
In the middle of the consolidation on July 9th, a continuation diamond pattern formed on the daily chart. It took roughly 15 months to form, but the breakout on that day suggested that the prior uptrend would continue. If the pattern holds, FedEx could climb as high as $390 over the next 6 to 9 months. This level is not far off from the Street-high $397 price target offered by UBS.
 Will Align Technology Stock Keep Going Up?
Align Technology (NASDAQ: ALGN) has been one of the best large-cap health care stocks to own. After soaring 92% last year, the maker of Invisalign ‘invisible’ braces has rallied another 15% in 2021. Based on a recent chart pattern, there’s good reason to believe it can continue moving higher.
Interestingly, a continuation diamond pattern formed on Align’s daily chart on the same day as it did on the FedEx chart. The continuation diamond is a classic chart pattern that starts with a downtrend of higher highs and lower lows. This is followed by a narrowing of the trading range and eventually an upward break out of the upper portion of the resulting diamond shape.
In the case of Align, the pattern took a bit longer to form but packs an equally potent punch. If the prior uptrend resumes as predicted, the stock could be on its way to the $763 to $794 range within the next six months.
Align looks like a long-term buy from a fundamental perspective as well. The company is producing some impressive growth again now that many dental offices are back in full swing. Healthy demand for its popular clear aligners and iTero scanning technology is forecast to drive 54% sales growth this year. With the company slated to report Q2 earnings next week, it looks like a great time to bite into some Align shares.
Is it a Good Time to Buy DaVita Stock?
DaVita (NYSE:DVA) is another health care stock with positive fundamentals and technicals in its favor. The company is a leader in the field of dialysis services for patients with chronic kidney failure. It operates kidney dialysis centers across the country that together generate steady sales results. Add in an improving cost structure and opportunities for expansion and it’s easy to see why the Street is forecasting strong profit growth over the next couple years.
Technical analysts are also expecting big things ahead for DaVita. The stock has been in a solid uptrend mode since June 2019 that was only moderately slowed by the pandemic downturn. After climbing to yet another all-time high in early May 2021, it has been building the base for the next leg up.
On Monday (July 19th), DaVita dipped below the lower end of the Bollinger band. This showed that the move was unusual given the historic volatility of the stock and that it was due for a turnaround. The last time this happened in February 2021, DaVita went on a run from approximately $100 to $130. We may see a similar gain in the coming months.
Earlier this week the analyst at Deutsche Bank gave DaVita a $207 price target that well exceeds the rest of the Street. He noted “the company isn’t yet fully understood by investors”. This amounts to more than 70% upside for the large cap medical play. The fundamentals and technicals seem to be well aligned on this one too.
FedEx is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

This Is Why Stocks Are Down Today

July
19, 2021

7 min read

This story originally appeared on PennyStocks

Why is the stock market down today? That’s one of the questions being asked by countless investors today. Whether we’re talking about penny stocks or blue-chips, the trend has shaken investors.

Why Are Stocks Down Today?

The Dow & the S&P 500 continued to drop lower as the COVID-19 delta variant impacted Wall Street and retail investors. That’s even in light of India beginning to offer doses of the Moderna (NASDAQ: MRNA) vaccine. Aside from concerns stemming from the Delta variant, inflation has also worried traders.

Comments from President Joe Biden resulted in a mixed response from the market. He explained that his ‘Build Back Better’ plan “will be a force for achieving lower prices for Americans looking ahead,” and that, “If your primary concern right now is inflation, you should be even more enthusiastic about this plan.”

The underlying issue among traders was that the President was addressing inflationary concerns in the first place. This was translated as a sign that he may be worried about rising prices. These comments came a few days after Treasury Secretary Janet Yellen told CNBC that “We will have several more months of rapid inflation, so I’m not saying that this is a one-month phenomenon.”

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Pair all of this with rising COVID cases, and it has become the perfect storm for selling pressure to come into the market. So what does this mean for the future? Is this the long-awaited “stock market crash” people have been talking about or is it just a minor correction? On top of this, even with the slide in broader markets, are there any opportunities to take advantage of?

These Stocks Avoided The Market Crash

It wasn’t all bad in the stock market today and “Yes,” there are opportunities out there. In this article, we’ll discuss a few of these high flyers, why they rallied, and how they’re avoiding this stock market crash right now.

Obviously, we mostly discuss penny stocks. But overall, the market’s volatility hasn’t only come from stocks under $5. Here are some of the companies avoiding the latest stock market sell-off:

MER Telemanagement Solutions Inc. (NASDAQ:MTSL)Allied Healthcare Products Inc. (NASDAQ:AHPI)Oragenics Inc. (NYSE:OGEN)Aethlon Medical Inc. (NASDAQ:AEMD)Novavax (NASDAQ: NVAX)

MER Telemanagement Solutions Inc. (NASDAQ:MTSL)

The first on this list of stocks avoiding the market crash is MER Telemanagement Solutions (MTSL Stock Report). Not that long ago, this was one of the penny stocks to watch. However, over the last week, MTSL stock has climbed from under $4 to a high of $8.94.

Why is MTSL stock on the move right now? There was a massive, parabolic move that MER Telemanagement saw late last week. This is where the first explosive move put this on penny stock lists. One problem was that there weren’t any apparent news catalysts to point at. But there has been a constant focus by retail traders on low-priced, lower float penny stocks.

MTSL fits this mold especially in light of having less than 10 million shares outstanding. In many cases, low float penny stocks can see explosive moves up (and down), with volatility becoming a huge driver. The latest rally for MTSL has seen the stock bounce from around $4 to highs of more than $6 on July 19th.

Allied Healthcare Products Inc. (NASDAQ:AHPI)

In a similar fashion to MTSL, Allied Healthcare Products (AHPI Stock Report) shares have experienced their own bout of trading volatility over the past week. While we’re seeing a stock market crash on Monday, AHPI shares climbed over 40% during the session. This is another instance where there are no headlines to point at, but momentum is kicking things into high gear.

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With an uptick in virus cases, some companies are gaining steam. Allied Healthcare manufactures a number of products geared toward addressing respiratory issues. Given the rise in coronavirus cases, companies dealing with respiratory issues may have garnered some sympathy sentiment in the stock market today.

Oragenics Inc. (NYSE:OGEN)

This month, Oragenics (OGEN Stock Report) has been relatively quiet in the market. The company is another coronavirus name to keep an eye on. Its lead product is Terra CoV-2. This is Oragenics’ vaccine candidate designed to prevent the virus as well as certain variants.

With virus fears triggering somewhat of a stock market crash today, it’s important to look at the bigger picture. Clearly, companies like Moderna have brought attention to companies that have exposure to the virus. Since Oragenics is actively pursuing a vaccine candidate, OGEN stock seems to be gaining the spotlight today.

Aethlon Medical Inc. (NASDAQ:AEMD)

Shares of Aethlon Medical Inc. (AEMD Stock Report) also caught a strong surge in the market today. One of the key factors traders weighed was concerning – you guessed it – its vaccine platform. The company has been developing a virus test utilizing Aethlon’s hemopurifier. This is the company’s immunotherapeutic device designed to fight against cancer and other life-threatening infections. Now the company has found potential for treating those with SARS-CoV-2.

Last month the FDA approved a supplement to its open Investigational Device Exemption (IDE). This will allow for the testing of the hemopurifier in patients with SARS-CoV-2/COVID-19 in a New Feasibility Study. The study, which will enroll up to 40 patients, will study the efficacy and safety of the device. With fears growing around a new variant, AEMD stock has clearly become part of the growing list of virus stocks to watch right now.

Novavax (NASDAQ: NVAX)

The now-famous former penny stock to watch, Novavax (NVAX Stock Report), is also growing in popularity today. Formerly focused on treating the flu, Novavax’s progress in addressing coronavirus has brought it to the forefront. While this is one of the likely reasons that it’s surging in the stock market today, there are a few other things to keep in mind.

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First, technical levels have come to light after NVAX stock tested its 50-day moving average last week. Furthermore, the upcoming August 5th conference call is at the top of mind for many. The company will discuss its second-quarter results and give an operational overview with key highlights. As this date approaches, speculation has begun increasing. Furthermore, the latest attention placed on vaccine stocks certainly hasn’t hurt things in the short term.

Is The Stock Market Going To Crash?

We’ve seen plenty of days where the stock market crashes, according to retail traders. But with the Dow and S&P 500 still trading much higher than they were at the start of 2021, “crash” may not be the right term to use right now. The fact is, volatility is clearly a factor in the stock market. It’s this sharp price movement in stocks that has produced plenty of opportunities to profit. Brad Lineberger, president of Seaside Wealth Management told CNBC recently that investors should “Embrace the volatility because it’s why investors are getting paid to own stocks.”

For active traders, finding where opportunities lie is the key. Right now, thanks to the rise in Delta variant cases, globally, vaccine stocks have begun to ramp up once again. Despite the broader market sell-off, many of these companies have presented plenty of potential for investors right now.

4 Stocks to Watch During a Market Crash

July
19, 2021

7 min read

This story originally appeared on PennyStocks

Are These Penny Stocks Worth It After The Stock Market Crash?

With the Dow down by over 900 points, investors were searching for penny stocks that could still have growth potential. But, to understand how to make money with penny stocks today, we have to understand why the market dropped. While there are several reasons attributed to the stock market crash today, there is one in particular. The Delta variant has been a constant reminder that the pandemic is far from over. 

In the U.K., cases have been soaring for the past few weeks, and many experts feared that the U.S. could be on a similar trajectory. And with cases shooting up by over 50% across the country, these fears are becoming real. So today’s major tumble is a direct result of the increasing Covid cases from the Delta variant. 

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And while we don’t yet know just how steeply cases will rise, the market always responds to fear. So despite today’s major drop in value, it is nowhere near the almost 3,000 point drop that occurred on March 16th. But, with any large bearish move, there is always an opportunity to be had. And with penny stocks, this opportunity can be quite large at times. With all of this considered, let’s take a look at four penny stocks to watch with the stock market down today. 

4 Penny Stocks to Watch With After Today’s Market Crash

Enzolytics Inc. (OTC: ENZC) Aquestive Therapeutics Inc. (NASDAQ: AQST) Jaguar Health Inc. (NASDAQ: JAGX)Support.com Inc. (NASDAQ: SPRT)

Enzolytics Inc. (OTCMKTS: ENZC)

Over the past year, biotech stocks have come into focus as a result of the pandemic. With Delta-related cases rising again, many companies in the biotech sector are seeing newfound attention. Enzolytics Inc. is a biotech company that has been on a tear in the past few months. This company specializes in the development of monoclonal antibodies and novel proteins for the treatment of infectious diseases. One of its staple clinically tested compounds is its Immune Therapeutic Vaccine-1 (ITV-1).

Recently, ENZC announced plans to advance the line of ITV-1 anti-HIV therapeutics to clinical trials and for further distribution in Europe. This will hopefully grant the company a significant revenue stream for later pipeline therapeutic projects and the continued testing of ITV-1. Positive clinical trials in the past have given ENZC investors a great deal of confidence future trials may also have a similar success rate.

And with monoclonal antibody therapies as one of the most common treatments for Covid, ENZC stock continues to be a popular penny stock to watch. Today, shares of ENZC stock shot up by around 11% and in the past six months, that number jumps to over 78%. Considering this solid rise in value, will ENZC stock be on your watchlist this month?

Aquestive Therapeutics Inc. (NASDAQ: AQST)

Another biotech penny stock in focus right now is Aquestive Therapeutics. For some context, AQST is an innovative business that focuses on creating solutions for patients with therapeutic problems. As a company, AQST has a strong commercial product pipeline for diseases relating to the central nervous system.

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It develops orally administered complex molecules, which is viewed as a preferred alternative to more invasive methods of therapies. Today AQST announced that the FDA has accepted its resubmission of Libervant, a drug in use for seizure cluster management.

“We are pleased with the FDA’s decision to accept for review the Libervant NDA. We believe this underscores the unmet need in the underserved population of refractory epilepsy patients for a non-invasive and innovative product for the management of seizure clusters. [The company] is preparing for the commercial launch of Libervant, if approved for U.S. market access, in the first half of 2022 and remain committed to fill this unmet need and improve the quality of life for patients suffering from this disease with this first of its kind treatment option.” CEO of Aquestive, Keith Kendall

Any news related to FDA approvals is always exciting for the companies involved and investors alike. And while this is not a full approval, it does put AQST one step closer to seeing Libervant become FDA-approved. With this exciting news in mind and its over 7% gain today, AQST stock could be worth adding to your list of penny stocks to watch. 

Jaguar Health Inc. (NASDAQ: JAGX)

Another biotech penny stock to watch right now is Jaguar Health. As an alternative company in the biotech industry, Jaguar is focused primarily on the development of novel, plant-derived, non-opioid prescription therapeutic medications. Specifically, JAGX develops medicines for both human and animal patients with GI distress. JAGX is also the parent company of Napo Pharmaceuticals, which develops and commercializes plant-based human GI pharmaceuticals as well.

Today, Napo and Dragon SPAC announced that the two will form a merger, which will become effective within the next three months or so. And, it should bring in future SBS license and milestone fees of over $12.5 million. These proceeds will be used to fund the merger with Napo EU and the development of its primary drug candidate, crofelemer. 

“We believe crofelemer will be eligible for the EMA’s conditional marketing authorization pathway for short bowel syndrome, which provides a fast-track clinical review process. We believe Jaguar’s shareholders will benefit from the anticipated revenue that Jaguar expects to earn from the license fees, royalty payments, and product transfer pricing requirements outlined in the license agreement between Napo Pharmaceuticals and Napo EU.” Lisa Conte, President, and CEO of JAGX

Considering this big update, JAGX stock could be an interesting penny stock to keep an eye on.

Support.com Inc. (NASDAQ: SPRT)

Moving away from biotech, Support.com is a tech penny stock that has climbed in value by almost 100% in the past six months. This company is a leading provider of both customer and technical support solutions for its clients. These solutions are delivered by employees that are personalized to each business involved, resulting in a highly individualized operation.

Over the past twenty years, SPRT has earned a glowing reputation through its global clientele and the ability to increase scalability. It does this via its expansive network and commitment to high-quality service. This past month, SPRT joined the Russell Microcap Index, which should bring in a great deal of investor attention.

“Our inclusion in the Russell Microcap Index represents an important milestone for the continued evolution of the company. We appreciate the added visibility this recognition brings within the broader investment community.” Lance Rosenzweig, CEO of Support.com

In the past few months, many penny stocks have joined the Russell Index as a result of the large bullish runs we’ve seen with some companies. Considering SPRT new listing on the index and its overall potential, will it be on your penny stocks watchlist this month?

Are These Penny Stocks Worth Watching After the Market Crash Today?

While the stock market crash today is disheartening, it ultimately could provide a great deal of opportunity for investors. In the short term, it does show how fragile the market is right now. However, in the long term it could lead to greater resiliency.

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Right now, investors should try to stay up to date with all the latest news and events going on. Specifically, this includes announcements as they relate to Covid. As we see, the pandemic continues to have a sizable effect on the trajectory of the stock market. So, with all of this in mind, are these penny stocks worth watching after the market crash today?

Archbee Raises $1m To Help Developers Manage Secret Sauce

Archbee Raises $1m To Help Developers Manage Secret Sauce

Tech start-up Archbee will today announce that it has raised $1m of capital from Inovo Venture Partners and YCombinator in the first significant funding round for the fast-growing company.Founded in 2019, Archbee describes itself as a “documentation specialist”. It provides a set of bespoke tools for software developers, enabling everyone in the business to organise key information and intelligence in a single hub for the benefit of colleagues and customers, both present and future.

“We are talking about the knowledge that makes your business what it is,” says Dragos Bulugean, Archbee’s founder and CEO. “Archbee is meant to be the one-stop-shop for the documentation needs of software companies.”
Bulugean founded the company after several years working in consultancy roles at leading software developers where he and his colleagues would often be frustrated by lack of easy access to vital information. Staff would lack key facts when bringing new team members on-board, say. Sales agents wouldn’t know where to find key features information when demonstrating products to clients. Customer service teams would struggle to answer product queries.

“Businesses are in a rush to create products, launch them faster and be the first to market,” Bulugean adds. “An important part of creating a product is its catalogue or index – in essence the ‘how to’ guide. It is this, often neglected task, that Archbee is making easier to create. It is not just a product manual but a central knowledge base and the true front of knowledge which is making an impact on commercial metrics – helping improve onboarding time for customers, reducing the number of support tickets and, importantly, making the products understood by users. We’re focussed on helping any company that builds software to create collaborative spaces which are accessible to all and easy to use.”

In practice, there are already a number of documentation services available to businesses, including services such as Google Docs. But Bulugean’s premise in launching Archbee was that software developers needed something bespoke, given the specialist nature of the information they create and maintain – everything from software design schematics to API mapping.

That instinct appears to have resonated strongly with customers. From a standing start less than two years ago, Archbee has acquired around 140 customers, growing sales revenues by 20% month-on-month. Its early adopters have tended to be young and smaller businesses – well-known clients include ChartHop and Epsagon – but the company is increasingly targeting larger businesses too.
Bulugean believes it is vital that businesses focus on “asynchronous information” – that is information not passed on in real time during face-to-face interactions. Much of the value of businesses such as software developers is locked up in their intellectual property – this is their “secret sauce” – but the information in which that asset is detailed is often poorly maintained and organised.
Maciej Malysz, a partner at Inovo Venture Partners, one of Archbee’s investors, says this idea lies at the heart of the company’s value proposition. “Archbee is a long-awaited platform that moves developers from working synchronously to asynchronously, allowing them to spend more time in deep-work mode and solve more challenging issues that demand full attention.”
The funding will enable Archbee to invest in outward-looking sales and marketing for the first time, with the company having operated largely as a one-man band until very recently. However, Bulugean is convinced that the secret of success in this marketplace lies in constant product development rather than prioritising marketing. “Product-lead sales can work if you have the right product,” he insists.
In the company’s favour is its software-as-a-service model, which provides good visibility and consistency of earnings. Archbee customers pay a monthly fee depending on the number of user licenses they require, though Bulugean says pricing strategy is still under development. “We’re experimenting,” he says.