AI chipmaker Nvidia is set to release its latest quarterly report, and analysts expect to see earnings of $2.09 per share. That would be a stunning jump from the $0.92 per share posted last quarter. However, with the market under tremendous stress recently, just hitting the number may not be enough. The company may have to blow away the estimates and give super positive forward guidance. Just seven stocks in the S&P 500 have accounted for 75% of the move higher this year, and Nvidia is one of them. If it fails to hit the ball way out of the park, the market could be in big trouble.
What should investors with big “magnificent 7” gains do? If the overall market and the economy were in better shape, perhaps nothing other than hedge shares with a costless collar. Yet, with mortgage rates at highs not seen in years, the potential for interest rates to continue to rise and retail running into some stiff headwinds for some companies, it may make sense either to sell positions in full and take big profits to or sell half and hedge the other half.
We screened our 24/7 Wall St. large-cap value and dividend research database for stocks with big dividends and also some big safety for worried investors. While all are rated Buy across Wall Street, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Dow
This stock certainly offers investors growth and income potential. Dow Inc. (NYSE: DOW) is a leading materials science company and was formed from the merger of Dow and DuPont in 2017 and the subsequent spin-off 2019. The company is organized into three principal divisions: Performance Materials & Coatings (23% of EBITDA), Industrial Intermediates & Infrastructure (27%) and Packaging & Specialty Plastics (51%).
The company’s segments include Agricultural Sciences, which is engaged in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils. The Consumer Solutions segment consists of Consumer Care, Dow Automotive Systems, Dow Electronic Materials and Consumer Solutions-Silicones businesses.
The Infrastructure Solutions segment consists of Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions, Performance Monomers and Infrastructure Solutions-Silicones businesses. Performance Materials & Chemicals consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses. The Performance Plastics unit consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons businesses.
Shareholders receive a 5.18% dividend. Piper Sandler has a $68 price objective on Dow stock. The consensus target across Wall Street is just $56.21, and shares closed on Tuesday at $53.79.
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