With a slowing economy and increasing concerns of a potential recession, fundamentally weak stocks might see big plunges this earnings season. Hence, it might be wise to avoid Neovasc (NVCN), TFF Pharmaceuticals (TFFP), and National CineMedia (NCMI) now. Keep reading.
Wall Street closed lower in the last session as concerns mounted over a cooling economy, indicated by a drop in job openings to a nearly two-year low and a second consecutive month of falling factory orders. Moreover, macroeconomic headwinds might impact corporate profits.
I think fundamentally weak stocks, Neovasc Inc. (NVCN), TFF Pharmaceuticals, Inc. (TFFP), and National CineMedia, Inc. (NCMI), are best avoided as they gear up to release their earnings reports.
While the stock market had a solid start to this year, JPMorgan strategists led by Marko Kolanovic said in a recent note that the market is unlikely to sustain its recent months’ gains.
They wrote, “The Fed indicated no intention to cut interest rates this year, yet risk assets are exhibiting an unprecedented rally. For a rational investor, we think this makes little sense. We expect a reversal in risk sentiment and the market re-testing last year’s low over the coming months.”
Strategists also noted that the US economy is likely on track for a hard landing scenario, with recent bank crises significantly raising the odds of a recession.
Take a look at the stocks mentioned above:
Neovasc Inc. (NVCN)
NVCN is a specialty medical device company that develops, manufactures, and markets products for cardiovascular marketplace in Europe and internationally. Its products include the Tiara technology for the transcatheter treatment of mitral valve disease and the Neovasc Reducer for treating refractory angina.
In terms of forward EV/Sales multiple of 6.55 is 78.3% higher than the industry average of 3.67. Its trailing-12-month P/S of 8.55x is 122% higher than the 4.03x industry average.
NVCN’s trailing-12-month gross profit margin of negative 68.60% compares with the industry average of 55.83%. Its trailing-12-month negative ROCE, ROTC, and ROTA of 78.25%, 35.86%, and 75.19% are lower than their respective industry averages of negative 40.14%, 21.78%, and 31.61%.
NVCN’s total expenses increased 12.3% year-over-year to $37.18 million during the fiscal year that ended December 2022. Its operating loss grew 9.8% from the prior year to $34.15 million. Moreover, loss for the year rose 65.6% year-over-year to $41.20 million, while loss per share increased 52.5% year-over-year to $15.07.
NVCN’s loss per share is expected to be $8.42 for the fiscal year 2023. The company has failed to surpass the consensus EPS estimates in each of the trailing four quarters, which is disappointing.
The stock declined marginally intraday, closing the last trading session at $29.67. It has a 24-month beta of 1.41.
NVCN’s POWR Ratings reflect its bleak outlook. The stock has an overall D rating, which equates to a Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
NVCN has an F grade for Value, Stability, and Quality. It is ranked #132 among 146 stocks in the D-rated Medical – Devices & Equipment industry.
Click here to see the additional POWR Ratings for NVCN (Growth, Momentum, and Sentiment).
TFF Pharmaceuticals, Inc. (TFFP)
TFFP is a clinical-stage biopharmaceutical company that focuses on developing and commercializing drug products based on its patented Thin Film Freezing (TFF) technology platform in the United States and Australia.
TFFP’s trailing-12-month P/S multiple of 86.21 is significantly higher than the industry average of 4.02. Its trailing-12-month EV/Sales of 56.51x compares with the 3.89x industry average.
TFFP’s trailing-12-month negative ROCE, ROTC, and ROTA of 104.75%, 65.39%, and 170.30% are lower than the negative industry averages of 40.14%, 21.78%, and 31.61%.
During the fiscal year that ended December 2022, TFFP’s total operating expenses rose 1.3% year-over-year to $32.29 million. Its loss from operations amounted to $31.80 million. The company’s net loss rose 2.4% from the prior year to $31.77 million, while its net loss per share stood at $1.06.
TFFP’s revenue is expected to decline 11% year-over-year to $60 thousand in the fiscal first quarter that ended March 2023. Its EPS is expected to come in at negative $0.22 for the same quarter.
The stock has declined 90.6% over the past year and 21.6% over the past month to close the last trading session at $0.65. Its 60-month beta is 1.21.
This grim prospect is reflected in TFFP’s POWR Ratings. The stock has an overall D rating, equating to a Sell in our proprietary rating system.
TFFP also has a D grade for Value, Momentum, and Quality. The stock is ranked #307 among 389 stocks in the F-rated Biotech industry.
TFFP ratings for Growth, Stability, and Sentiment can be accessed here.
National CineMedia, Inc. (NCMI)
NCMI operates cinema advertising network in North America through its subsidiary, National CineMedia, LLC.
NCMI’s forward EV/Sales of 4.92x is 165% higher than the industry average of 1.86x. Its forward EV/EBIT of 186.29x is significantly higher than the industry average of 16.23x.
NCMI’s trailing-12-month negative EBITDA and net income margin of 3.81% and 11.86% are remarkably lower than the industry average of 18.02% and 3.38%. Its trailing-12-month gross profit margin of 46.52% is 7.4% lower than the industry average of 50.22%.
NCMI’s operating expenses came in at $58.7 million for the third quarter that ended September 29, 2022, up 16.5% year-over-year. Its adjusted loss per share amounted to $0.13. Its current liabilities came in at $290.20 million, compared to $69.8 million in the previous period.
The EPS is expected to amount to a negative $0.29 in the fiscal year 2023. It missed EPS estimates in three out of four trailing quarters.
The stock has lost 94.4% over the past year to close the last trading session at $0.14. It has declined 39.1% over the past month. Its 24-month beta is 1.52.
It is no surprise that NCMI has an overall D rating, which equates to a Sell in our POWR Ratings system.
It also has an F grade for Stability and Sentiment. It is ranked #5 among six stocks in the F-rated Entertainment – Movies/Studios industry.
To see additional POWR Ratings for Growth, Value, Momentum, and Quality for NCMI, click here.
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NVCN shares were unchanged in premarket trading Wednesday. Year-to-date, NVCN has gained 87.84%, versus a 7.27% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor’s degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.
The post 3 Stocks to Evade in the Middle of Earnings appeared first on StockNews.com
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The upcoming earnings season could be highly volatile in the face of uncertain macroeconomic conditions, including high inflation, rising interest rates, recent bank failures, and growing recessionary risks. Amid this backdrop, it could be wise to avoid fundamentally weak stocks TuSimple Holdings (TSP), Ra Medical (RMED), and Agrify (AGFY), which are going to release their earnings reports tomorrow. Continue reading….
The Fed’s continued rate hikes and the recent turmoil in the financial system have increased the likelihood of a recession this year. Amid an uncertain macro environment, analysts expect a stormy earnings reporting season. We think that investors should avoid struggling stocks TuSimple Holdings Inc. (TSP), Ra Medical Systems, Inc (RMED), and Agrify Corporation (AGFY), which are expected to release their earnings reports this Wednesday.
The Federal Reserve raised interest rates by a quarter-point, balancing the fight against stubborn inflation with the recent turmoil in the banking sector. The Fed’s move marked the ninth-rate hike and lifted the federal fund rates to a range of 4.75%-5%. Fed officials feel that “some additional policy firming” may be needed and expect the year-end 2023 policy rate at 5.1%.
Investors await the jobs report due this Friday to see whether the labor market softened under the pressure of increasing layoffs last month. According to data from Trading Economics, the economy is expected to add 238,000 jobs in March, and the unemployment rate is set to hold steady at 3.6%.
High inflation, steady interest rate hikes, and growing risks of tighter credit conditions amid several bank failures raise the probability of an economic downturn this year.
Veteran economist David Rosenberg warned that corporate profits are declining. A slump in corporate profits could be a sign of an oncoming economic downturn and weigh on the stock market. “If 2022 was about multiple contraction from nosebleed levels, 2023 is when interest rates percolate through the economy and into corporate earnings,” he said.
Amid a challenging macro environment, it could be potentially volatile this earnings season. TSP, RMED, and AGFY are slated to release earnings reports tomorrow, and in this piece, I have discussed various reasons why investors should avoid these stocks.
TuSimple Holdings Inc. (TSP)
TSP designs autonomous technology specifically designed for semi-trucks in the United States and internationally. The company operates its Autonomous Freight Network (AFN) L4 autonomous semi-trucks equipped with its autonomous driving technology.
On December 22, 2022, TSP announced a restructuring plan which would impact approximately 350 employees or 25% of its workforce. The company plans to actively work with key shipping partners to operationalize its autonomous technology. And to help ensure capital efficiency, it also plans to scale back freight expansion.
Cheng Lu, TSP’s President and CEO said, “I returned to TuSimple as CEO to help address a number of challenges and set the Company up for long-term success. This required evaluating our entire workforce and making tough decisions. It’s no secret that the current economic environment is difficult. We must be prudent with our capital and operate as efficiently as possible.”
TSP’s trailing-12-month gross profit margin of negative 98.16% compares to the industry average of 29.29%. Likewise, its trailing-12-month ROCE, ROTC, and ROTA of negative 36.24%, 20.44%, and 38.06% compare to the respective industry averages of 13.67%, 6.96%, and 5.16%.
During the third quarter that ended September 30, 2022, TSP’s gross loss widened 63.5% year-over-year to $2.78 million. Its loss from operations worsened by 3.2% from the year-ago value to $119.66 million. Its adjusted EBITDA loss was $93.60 million for the quarter. Also, the company reported a net loss and net loss per share attributable to common shareholders of $113.16 million and $0.50, respectively.
Furthermore, as of September 2022, the company’s cash and cash equivalents were $871.36 million, compared to $1.34 billion as of December 31, 2021. Its total liabilities stood at $111.50 million, compared to $69.35 million as of December 31, 2021.
Analysts expect TSP’s loss per share to widen 12.9% year-over-year to $0.60 for the fourth quarter that ended December 2022. Also, the company’s loss per share for fiscal 2023 is expected to worsen by 16.7% from the previous year to $2.36.
Over the past year, shares of TSP have declined 89% to close the last trading session at $1.40. Also, the stock has plunged 82.4% over the past six months.
TSP’s POWR Ratings reflect this weak outlook. It has an overall rating of F, equating to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an F grade for Quality and a D for Sentiment, Value, and Stability. It is ranked #19 out of 20 stocks in the D-rated Trucking Freight industry. Click here to see additional ratings of TSP (Momentum and Growth).
Ra Medical Systems, Inc (RMED)
RMED is a medical device company. It owns an advanced excimer laser-based platform for treating vascular immune-mediated inflammatory diseases. The company also develops electrophysiology products to provide patients, physicians, and hospitals with technologies to improve patients’ lives with cardiac arrhythmias.
RMED’s trailing-12-month ROCE, ROCE, and ROTA of negative 158.51%, 74.55%, and 154.50% compare to the industry averages of negative 40.21%, 21.80%, and 31.63%, respectively. In addition, the stock’s trailing-12-month asset turnover ratio is 99.8% lower than the 0.35x industry average.
For the third quarter that ended September 30, 2022, RMED reported an operating loss of $4.78 million. Its loss from continuing operations came in at $4.76 million. The company’s net loss widened 10.8% year-over-year to $4.76 million, while its net loss per share was $4.36 for the third quarter.
In addition, as of September 30, 2022, its cash and cash equivalents were $13.66 million, compared to $15.05 million as of December 31, 2022.
The consensus revenue estimate of $14,000 for the fiscal year 2022 indicates a 36.4% decline year-over-year. Moreover, RMED missed the consensus EPS estimates in three of the trailing four quarters, which is disappointing. The stock has declined 36.1% over the past month and 76.5% over the past six months to close the last trading session at $1.56.
RMED’s weak fundamentals are reflected in its POWR Ratings. The stock has an overall D rating, equating to Sell in our proprietary rating system.
RMED has an F grade for Stability and Quality. It also has a D for Value and Momentum. The stock is ranked #133 out of 140 stocks in the D-rated Medical-Devices & Equipment industry.
In addition to the POWR Ratings grades I’ve just highlighted, you can see the RMED’s ratings for Sentiment and Growth here.
Agrify Corporation (AGFY)
AGFY develops precision hardware and software cultivation and extraction solutions for the cannabis and hemp industry. It provides vertical farming units and Agrify Insights Software-as-a-Service software; integrated grow racks and LED grow lights; and non-proprietary products manufactured by third parties, including air cleaning systems and pesticide-free surface protection products.
On November 9, 2022, AGFY adjusted its fiscal year 2022 outlook as industry-wide challenges and a tough macro environment continue to challenge the business. Also, the pending lawsuit from Bud & Mary’s, which resulted in an unanticipated deferral of nearly $5.30 million in third-quarter revenue, is expected to impact fourth-quarter revenue.
The company expects to generate total revenue between $65 million and $70 million for the full-year 2022 instead of the prior guidance range of $70 million to $75 million.
AGFY’s trailing-12-month gross profit margin of 9.39% is 67.9% lower than the industry average of 29.29%. Also, the stock’s trailing-12-month EBITDA and net income margins of 82% and 208.4% are significantly lower than the industry averages of 9.72% and 6.49%, respectively.
AGFY’s revenues decreased 55.4% year-over-year to $7 million in the third quarter that ended September 30, 2022. Its gross loss for the third quarter totaled $4.10 million, compared to $380,000 in the prior-year period. Its operating expenses increased 191.5% from the year-ago value to $27.40 million. The company’s adjusted EBITDA loss was $28.80 million.
Additionally, the company’s net loss and net loss per share widened by 372.4% and 270.3% year-over-year to $46.30 million and $17.33, respectively. Cash flow used in operating activities was $8.50 million, compared to $3.70 million in the same quarter in 2021.
Analysts expect AGFY’s revenue to decline 56.2% year-over-year to $11.07 million for the fourth quarter that ended December 2022. The company is expected to report a loss per share of $1.31 for the same period. In addition, it failed to surpass the consensus EPS estimates in each of the trailing four quarters.
Furthermore, analysts expect AGFY to report a loss per share of $2.22 for the fiscal year 2024. The stock has slumped 58.2% over the past month and 99.6% over the past year to close the last trading session at $0.16.
AGFY’s bleak prospects are reflected in its POWR Ratings. The stock has an overall rating of D, translating to Sell in our proprietary rating system.
AGFY has an F grade for Stability and Sentiment and a D for Quality. Within the F-rated Biotech industry, the stock is ranked #332 of 401 stocks. To see additional POWR Ratings of AGFY for Growth, Value, and Momentum, click here.
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TSP shares were unchanged in premarket trading Tuesday. Year-to-date, TSP has declined -14.63%, versus a 8.19% rise in the benchmark S&P 500 index during the same period.
About the Author: Mangeet Kaur Bouns
Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions.
The post Earnings Roll Call! Stocks EVERY Investor Is Watching This Wednesday, and Why You Should Avoid Them appeared first on StockNews.com
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- Jade Beason is a full-time content creator and creator coach who used to work in marketing.
- She earned roughly $380,000 in revenue in 2022 from her coaching business, brand deals, and more.
- She described four strategies she used to scale her business.
Influencer and creator coach Jade Beason more than quadrupled her revenue in a year.
The London-based creator, who has about 113,000 YouTube subscribers, made about £70,000, or $92,000, in 2021 when she left her marketing job to become a full-time influencer. In 2022, she grew her revenue to £312,000, or roughly $380,000, largely through her coaching programs and brand partnerships. Insider verified the earnings with documentation she provided.
Beason said a lot of factors went into this. But the most significant was her shift to focusing on content creation and coaching full time, which her eight years of marketing experience gave her the confidence to do.
She went into 2022 with ambitions to scale her business model, including changing her coaching style and solidifying her rates for brand partnerships.
Beason shared the four main strategies that helped her grow her business and revenue, which she details in her podcast:
1. Create membership programs for your followers
Beason changed the style of her creator training from one-on-one — coaching individual creators — to one-to-many. She offers a membership program called “The Creators Club” and an online course about Instagram marketing, which are both available for groups, in addition to some one-on-one services.
“They allowed me to do group coaching or they were self-study, so it meant that I could just focus on marketing them and the delivery didn’t take as much time,” Beason told Insider. “I launched those in 2021, just at the very end, and then I focused on scaling those.”
Creators can apply the one-to-many model to their own work by offering group courses, coaching programs, or memberships, Beason said. She also suggested creators take advantage of subscription platforms like Patreon or Kajabi, and use in-app features like Instagram subscriptions or YouTube’s channel memberships.
2. Identify where you need help and hire someone
Hiring a part-time video editor was a game-changer for Beason. Before, she would spend eight hours a week editing videos. She freed up that time by identifying the areas of her business that she needed the most assistance with.
“I would literally break down all of the tasks that I was doing and how much time it took me every week,” Beason said. “Then I would look at that list and figure out which thing made the most sense to hire for or hand over.”
She figured out a budget for hiring, and stuck to it. Beason said she spoke to an accountant, her peers in marketing, and did research on sites like Glassdoor to get an idea of how much she should pay for different roles. She then forecasted the next five years of her business’ financials to determine when she would be able to hire someone full-time, which she is working toward right now.
She also stressed that not all creators need senior-level staff when starting their businesses, especially if it’s not affordable for them.
3. Expand your reach by branching out to other social-media platforms
Beason first started making content for YouTube and Instagram, but has since expanded to TikTok and Pinterest. She also has a newsletter and podcast.
As someone who enjoys talking for longer periods of time, she gravitates towards the platforms like YouTube and podcasts that allow long-form content, she said.
Creators should consider what platforms fit their content styles best, according to Beason. Otherwise, they’ll get frustrated with the process.
“Start with what you like and what you prefer, because your audience is on any platform,” Beason said.
She also said to perfect the platforms you start with before expanding to new ones.
“I couldn’t start this journey thinking, ‘Okay, I’m going to be on Instagram, YouTube, TikTok, Pinterest, and I’m going to have a podcast and a newsletter.’ I would have been burnt out a long time ago,” Beason said. “I only ever start something new, when I feel comfortable with what I’m already running.”
4. Highlight brand testimonials from your clients or customers
According to Beason, your website’s landing page should include two or three sections with testimonials from followers, brand partners, or other clients. She said “social proof” like this should be front and center when creators promote their businesses.
Testimonials don’t have to be long-winded by any means. Beason said creators can pull from their comments and DMs, and ask permission to use them in marketing materials.
“When you get a lovely DM from someone saying, ‘Hey, I bought this jacket because of you,’ or when you get a comment from someone saying, ‘You’re the reason why I ate healthy this week’ — screenshot that message to them, saying, ‘Are you okay with me using this in my marketing?'” Beason said, about gathering testimonials.
She added: “Nine times out of ten, they’ll say yes. Screenshot it and save it to a folder because that is some of the best social proof that you can get especially when you’re starting out.”
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Affiliate marketing has become a popular way to make money online, but with so many affiliates out there, it can be challenging to stand out from the crowd. To be successful in affiliate marketing, you need to be creative and strategic. In this post, we’ll share five creative affiliate marketing strategies that you can use to boost your earnings and stand out in a crowded market.
Affiliate marketingPhoto bypixabey
- Offer Exclusive Discounts
One way to entice your audience to buy through your affiliate links is by offering exclusive discounts. You can negotiate with the merchant to offer a discount code that is only available to your audience. This not only helps to increase sales but also strengthens the relationship with your audience by offering them something that they can’t get elsewhere.
- Create Product Comparison Content
Another way to stand out in a crowded market is by creating product comparison content. This type of content provides your audience with a comprehensive comparison of products, including features, benefits, and pricing. By providing this information, you are helping your audience make an informed decision and increasing the likelihood of them making a purchase through your affiliate link.
- Utilize Email Marketing
As arbproduct mentioned Email marketing is a powerful tool for affiliates to promote products and services. By creating a targeted email list of subscribers, you can send personalized emails with product recommendations and exclusive deals. This helps to build trust with your audience and increase the likelihood of them making a purchase through your affiliate link.
- Host Webinars
Hosting webinars is another effective way to promote products and services as an affiliate. Webinars allow you to showcase the features and benefits of the product or service and answer any questions that your audience may have. This type of content provides value to your audience and can help to increase conversions.
- Create Video Content
Video content is becoming increasingly popular, and it’s a great way to promote products and services as an affiliate. You can create product review videos, tutorials, or demos that showcase the features and benefits of the product or service. This type of content is engaging and can help to increase conversions by providing your audience with a visual representation of the product or service.
Conclusion:
Affiliate marketing requires creativity and strategy to be successful. By implementing these five creative affiliate marketing strategies, you can stand out from the crowd and boost your earnings. Remember to always provide value to your audience, build trust, and focus on building long-term relationships with your audience. With dedication and hard work, you can build a successful affiliate marketing business.
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