1st peanut allergy drug for children approved by FDA

In a new, groundbreaking development in the fight against food allergies, the Food and Drug Administration approved the first treatment for children with peanut allergies on Friday.

“Peanut allergy affects approximately 1 million children in the U.S. and only 1 out of 5 of these children will outgrow their allergy,” said Dr. Peter Marks, director of the FDA’s Center for Biologics Evaluation and Research in a news release. “Because there is no cure, allergic individuals must strictly avoid exposure to prevent severe and potentially life-threatening reactions.”

The drug, called Palforzia, is not a cure but still marks a step forward in reducing allergic reactions for kids ages 4 through 17, who have already been diagnosed with peanut allergies.

Marks noted that even when avoiding peanuts, inadvertent exposure can still happen and that’s what this drug aims to treat. He explained, “When used in conjunction with peanut avoidance, Palforzia provides an FDA-approved treatment option to help reduce the risk of these allergic reactions in children with peanut allergy.”

The FDA acknowledges that peanut allergies are unpredictable and severe reactions can occur from even the smallest trace of peanuts.

The Palforzia pill is administered in three phases and is taken over time, but cannot be used in an emergency situation in the way that a treatment like an EpiPen is used.

The first phase, called initial dose escalation, is consumed on a single day under the supervision of a medical professional, while up-dosing, the second phase, takes place over several months and involves 11 increased dose levels. The first dose in up-dosing would be given under a medical professional’s supervision as well, just to manage any potential severe allergic reactions. After that, the drug can be taken at home, as long as everything goes smoothly. Once the 11 doses in the second phase are completed, the third and final maintenance dose would then be administered daily.

The drug itself is a powder made from peanuts that comes in color-coded capsules for the first two phases. In the maintenance phase, the drug comes in a sachet. The powder can be mixed with semi-soft foods such as applesauce and yogurt before a child consumes it.

The FDA tested both the effectiveness and safety of the new drug in multiple double-blind, placebo-controlled studies with approximately 500 individuals with peanut allergies. Based on those studies, the potential side effects of Palforzia include abdominal pain, itching, tingling in the mouth, nausea, vomiting, cough, runny nose, throat irritation, tightness, hives, wheezing, shortness of breath and anaphylaxis.

While peanut allergy symptoms can vary among individuals, the most extreme response is anaphylaxis. Anaphylaxis is a life-threatening reaction that can cause constriction of the airways, throat swelling, loss of consciousness, and a severe drop in blood pressure, according to the Mayo Clinic.

Doctors who administer Palforzia are required by the FDA to be educated on the risks of anaphylaxis, and the drug will only be available through certified healthcare providers, health care settings and pharmacies to patients enrolled in a Risk Evaluation and Mitigation Strategy (REMS) program, or whose parents or caregivers are.

According to the American College of Allergy, Asthma and Immunology, peanut allergies are the most common food allergy in the U.S. and a 2017 study found peanut allergies increased by 21 percent since 2010. With peanut allergies on the rise, this type of treatment can help prevent more serious reactions.

Decades in the making, Solar Orbiter finally meets launcher at Cape Canaveral

The European-built Solar Orbiter spacecraft was installed on top of its United Launch Alliance Atlas 5 launcher Friday at Cape Canaveral, ready for final charging and checkouts before liftoff Feb. 9 to finally begin a more than $1.5 billion science mission first approved by the European Space Agency nearly 20 years ago.

Scientists are eager for the unprecedented images and data Solar Orbiter will beam back to Earth, including the first-ever views of the sun’s poles.

“It will be terra incognita,” said Daniel Müller, project scientist for the mission at the European Space Agency. “This is really exploratory science.”

“The sun is an extremely dynamic astronomical body,” said César García, ESA’s project manager for the Solar Orbiter mission. “It’s constantly ejecting mass, ejecting charged particles and ejecting magnetic fields into where we are, into the heliosphere.

“The purpose of this mission is looking at these very dynamic phenomena, and trying to determine what makes them happen,” García said.

But it’s been a long wait. Scientists first developed the concept for the Solar Orbiter mission in 1999, and ESA approved the project in 2000 for additional studies. At that time, officials expected the mission to be ready for launch between 2008 and 2013.

After a decade of concept studies, and the start of a new partnership with NASA, ESA formally selected Solar Orbiter in 2011 for full-scale development, with a launch scheduled in 2017.

But technical difficulties in building the Solar Orbiter spacecraft delayed the mission to 2020.

The nearly 3,900-pound (1,750-kilogram) spacecraft was transferred by truck from the Astrotech payload processing facility in Titusville, Florida, early Friday and arrived at ULA’s Vertical Integration Facility at Cape Canaveral’s Complex 41 launch pad several hours later. Teams there hoisted the Solar Orbiter spacecraft — already enclosed inside its 4-meter (13.1-f0ot) payload shroud — atop an Atlas 5 launcher.

The Solar Orbiter spacecraft’s mating with its launch vehicle was delayed two days this week, first by a SpaceX launch from the nearby Complex 40 launch pad Wednesday, which prevented the payload transfer to the VIF due to safety concerns because of the close proximity between the pads. Poor weather Thursday prevented Solar Orbiter from rolling out to the VIF on Thursday, but conditions improved for the transfer operation Friday.

The delays in attaching Solar Orbiter to its Atlas 5 launcher forced officials to push back the mission’s liftoff from Feb. 7 to Feb. 9. The two-hour launch window Feb. 9 opens at 11:03 p.m. EST (0403 GMT on Feb. 10).

The launch was originally slated for Feb. 5, but a technical issue discovered during a practice countdown on the Atlas 5 rocket prompted a two-day schedule slip to Feb. 7.

Solar Orbiter has launch opportunities through Feb. 23, or else wait until a backup launch period in October. The mission has limited launch windows because it must depart Earth on a trajectory toward Venus, which plays a major role in reshaping Solar Orbiter’s trajectory around the sun to set it up for the start of its science mission.

Over the past few weeks, teams at Astrotech have loaded the Airbus-built spacecraft with a quarter-ton of hydrazine and nitrogen tetroxide propellants. Then technicians encapsulated the spacecraft inside the Atlas 5’s nose cone, which is emblazoned with logos for the Solar Orbiter mission, ESA and NASA.

While ESA leads the Solar Orbiter mission, NASA is paying for the probe’s launch, and there is one U.S.-led instrument on the spacecraft.

With the launch of Solar Orbiter, scientists will soon have two spacecraft observing the sun from locations closer than any previous mission.

NASA’s Parker Solar Probe launched in August 2018 on a trajectory that takes it closer to the sun than Solar Orbiter. But Solar Orbiter carries cameras and telescopes, while Parker flies so close to the sun that scorching temperatures could damage, or destroy, sensitive imaging sensors.

And Solar Orbiter will circle the sun at a higher tilt than Parker, allowing views of the sun’s poles.

“Solar Orbiter will go into a unique location moving out of the sun-Earth plane and be able to, for the first time, image the poles of the sun, so it’s adding a whole new dimension to what we’re able to do now,” said Nicky Fox, director of NASA’s heliophysics division.

The first good look at the sun’s poles will come in 2025, when Solar Orbiter reaches a trajectory angled at 17 degrees to the ecliptic plane, the plane in which the solar system’s planets are located. Repeated flybys with Venus will gradually ratchet up the probe’s inclination, or orbital tilt, thanks to the planet’s gravity.

By 2029, after the end of Solar Orbiter’s primary mission phase, the spacecraft should be in an orbit inclined more than 33 degrees to the ecliptic plane, enabling even better views of the sun’s poles.

The Solar Orbiter mission, also known as SolO, is the next in a line of large-scale solar research mission developed in collaboration between the European Space Agency and NASA. It follows the Solar and Heliospheric Observatory, or SOHO, mission launched in 1995, and the Ulysses probe launched in 1990 to study the sun’s polar regions for the first time.

Ulysses ceased operating in 2009, but SOHO continues collecting data and imagery to measure the sun’s output and help forecasters predict the impacts of solar storms, which could affect satellite navigation, communication and electrical grids on Earth.

“SOHO has shown tremendous resilience and lifetime,” said Günther Hasinger, director of ESA’s science program. “SOHO is still one of the backbones of space weather prediction. At some time in the future, SOHO will no longer work. There was Ulysses originally, then SOHO. We also have a number of small missions like the Proba 2 and Proba 3 missions, which are dedicated to solar research.

“But Solar Orbiter is clearly a new class in its own,” Hasinger said in a recent interview with Spaceflight Now. “It has loads of instruments, which will go not as close as Parker Solar Probe, but quite close. Solar Orbiter will also have eyes. Parker Solar Probe can only sense and measure the plasma and the magnetic field, but Solar Orbiter also has six instruments that can really look at the sun.”

Fitted with 10 science instruments, Solar Orbiter will swing inside the orbit of Mercury and travel as close as 26 million miles (42 million kilometers) from the sun, about a quarter of Earth’s distance from the sun. Temperatures encountered by Solar Orbiter could reach nearly 1,000 degrees Fahrenheit, or about 530 degrees Celsius, according to Anne Pacros, Solar Orbiter’s mission and payload manager at ESA.

“It’s like being in a pizza oven, so you have to make sure that you don’t burn the instruments,” Hasinger said.

Solar Orbiter will see solar heating 13 times that experienced by a satellite in Earth orbit. Engineers developed a heat shield to protect the spacecraft from the hot temperatures, including sliding doors for the probe’s camera and telescopes.

The heat shield is made of several layers of titanium, the outermost of which is covered in a coating named “Solar Black,” which was specifically invented for the Solar Orbiter mission.

“We developed this black coating which is able to withstand about 500 degrees Celsius (more than 900 degrees Fahrenheit),” García said. “It is installed in a way that is separate from the spacecraft so that theres no conduction of heat from the very hot surface on the heat shield to the rest of the spacecraft.”

“What we want to do with Solar Orbiter is to understand how our star creates and (produces) this constantly-changing environment throughout the solar system,” said Yannis Zouganelis, ESA’s deputy project scientist for the mission. “We have big questions we want to answer.”

“There are still mysteries around our understanding of the energy sources in the sun that produces the magnetic field and solar flares,” Hasinger said. “A lot of people now think that some of the mysteries are actually hidden in the poles, which we have never seen. So the hope is that if we are able to observe the poles in a very accurate way, then we may understand better how the magnetic field is created and transported. In particular, the 11-year solar cycle seems to be linked to things that are happening on the poles.”

The Ulysses mission, thanks to a boost into a highly-inclined orbit from Jupiter’s gravity, carried instruments that measured the environment over the sun’s poles. But Ulysses did not have cameras, and it never flew closer to the sun than Earth.

Solar Orbiter will take around a half-year to complete one lap around the sun. At times, the spacecraft’s velocity relative to the sun will closely match the rate of the star’s rotation.

“So it’s almost like a geostationary satellite which always looks at the same spot of the sun for 10 days in a row,” Hasinger said. “That means you can really follow the development much more accurately and see how the magnetic field structures are developing.”

Scientists hope to learn more about the inner workings of stars by looking at the sun. But there’s also a tangible benefit, officials said.

“It is indeed a golden age for solar terrestrial physics,” Hasinger said. “It’s also, I think, an age where we are slowly moving from the scientific analysis to the understanding of space weather, and also space weather forecasting.

“So I think the whole element of space weather will become very important, not just for the environment of the Earth and the technical infrastructure, but also when you want to send astronauts to the moon and to Mars, space weather is a very important element,” Hasinger told Spaceflight Now.

These 3 Stocks Are Too Cheap to Pass Up

Whether you’re a value investor or you just want to limit your potential risk in the markets, focusing on stocks that are well-priced can be a great way to help you earn a better overall return.

These stocks are cheap buys that are trading at attractive multiples, and they can add some great diversification for your portfolio. 

1. Delta Air Lines

Delta Air Lines (NYSE:DAL) is not a popular stock at the moment, with another concerning flu virus in the headlines making people wary of traveling. However, that’s precisely why Delta belongs on your watch list. There could be a lot of bearishness that sends Delta’s stock down in the coming weeks as investors pull away from aviation stocks. And with Delta already trading at a very modest 7.7 times earnings and a PEG ratio of less than 1, it’s already a good deal today.

It’s hard to go wrong with a stock that Warren Buffett is a fan of, with the billionaire investor holding an 11% stake of the company today. And it’s easy to see why Buffett would like Delta — the company is a consistent performer. Sales have steadily climbed from $39.6 billion in 2016 to more than $44.4 billion in 2018. The airline’s bottom line looks solid as well, with profits of at least $3.5 billion in each of its past three years. 

To make things even better, Delta also pays its shareholders a steadily increasing dividend that currently yields 2.8%, topping the S&P 500’s average around 1.8%.

2. Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (NYSE:CM) may be an even safer pick than Delta. The Canadian big-five bank is one of the more stable investments you’ll find on the markets. The company’s profit margins have been north of 26% in each of the past five fiscal years, while profits have risen from 3.5 billion Canadian dollars to more than CA$5 billion during that time. In fiscal 2019, the bank also accumulated more than CA$18 billion in free cash flow. 

Falling interest rates and a concerning outlook for the economy’s future have made investors bearish on financial stocks. The good news is that has made CIBC a cheap buy, as it’s currently trading at less than 10 times its earnings and less than 1.5 times its book value.

The stock is down slightly over the past 12 months, which is disappointing since the S&P 500 is up about 20% during that same period. However, over the long term, bank stocks are generally safe investments to hold on to, and CIBC is likely to rise in value once the economic outlook improves.

Investing in a top Canadian bank stock will help add some geographical diversification to your portfolio while you also earn a great dividend. CIBC currently pays its shareholders a quarterly dividend of CA$1.44, which is a yield of 5.3%. That’s a great payout, well supported by the bank’s 50% payout ratio — it’s well above the S&P 500 average and what you’d normally expect from a safe bank stock.

3. Trulieve Cannabis

Trulieve Cannabis (OTC:TCNNF) is the riskiest stock on this list, but that’s only because of the industry it operates in — marijuana. The company has turned a profit in each of the past four quarters, and those numbers may only get stronger as Trulieve begins to focus on states outside its Florida base. Recent expansions into California, Connecticut, and Massachusetts are sure to help the company’s top and bottom lines grow in the quarters and years to come.

Although Trulieve’s net income has been distorted as a result of fair value gains and nonoperating items, making its price-to-earnings (P/E) of 8.5 a little misleading, the stock still trades at a very reasonable forward P/E ratio of less than 16. And at a price-to-sales multiple of 5.8, the stock is cheap compared to industry giant Canopy Growth, which trades around 30 times its revenue. 

Unlike the other stocks on this list, Trulieve doesn’t pay a dividend, but it can more than make up for that with the growth potential that it possesses.

Analysts project that just the U.S. market alone could be worth as much as $41 billion by 2028 if pot were entirely legal across the country. And with more than 30 states legalizing cannabis for medical use already, it seems more likely than not that some type of federal legalization may be around the corner. With Trulieve now a multistate operator, it could stand to benefit significantly if that happens.

Which is the best stock to own today?

All three of the stocks listed here are good value buys and could net you some good returns. But if you need to pick just one, it’ll depend on what you want to focus on.

If growth is what you’re after, Trulieve is hands-down the best option, as it has the most potential to rise in value in the years to come. For income investors, it’s hard to argue with the stability and dividends that you can get by holding shares of CIBC. But if you prefer to stay local and you’re a Buffett fan, then Delta is also a solid choice that you can safely hold in your portfolio for many years.

Wall Street analysts say these stocks are ‘compelling’ including Oxford Industries and iHeartMedia

CNBC examined the latest Wall Street research this week to find stocks that analysts say are “compelling” buys for investors.

These companies include Oxford Industries, iHeartMedia, Archer Daniels Midland, Qorvo, and Aspen Technology.

Oxford Industries

This week Needham raised its rating on the stock to buy from hold. The company is best known as the maker of apparel brands like Tommy Bahama, Lily Pulitzer and others.

The firm said the anticipation of the shorter shopping holiday window may have caused some deceleration in the company’s third-quarter earnings report in early December.

But now things are starting to look up for investors due to what the firm said was “better demand” than expected in the holiday season.

“Our checks also indicate fairly well-controlled discounting, giving us confidence about 4Q, analyst Rick Patel said.

“We also think that OXM has compelling growth drivers for each of its major brands in 2020 that can fuel sales,” he said.

Archer Daniels Midland

With Phase 1 of the U.S-China trade deal complete, there’s one company that looks set to prosper according Buckingham.

Archer Daniels Midland reported strong fourth-quarter earnings this week and it could be a big year for investors of the global food processing and agricultural commodities company if analysts are to be believed.

“We believe the U.S./China Phase 1 trade agreement will gradually aid earnings across F20, but more specifically, during 4Q20 when U.S. crop prices are most competitive on a global basis,” analyst Eric Larson said.

The firm said the company’s growth is “compelling” and urged clients now is the time buy.

“With the potential aid of several improving 2020 micro/macro fundamentals, and self-help programs, we believe valuation and stock price downside risk is limited,” he said.

iHeartMedia

B. Riley FBR upgraded iHeartMedia to buy this week and said the media communications company looks set to take advantage of the election season among other things .

“High-margin political revenues should provide a few points of incremental revenue growth in 2020. Moreover, core radio advertising could benefit, as well, with political ads crowding out TV inventory availability for non-political advertisers,” the analyst said.

But the company’s growth is still an area for investors to closely monitor when the firm reports earnings in late February.

“Among investors, the fear of sustained core revenue declines, plus relatively high leverage, is likely to remain an obstacle

for multiples,” they said.

“Despite this mixed outlook for the group, we see a compelling setup for radio’s largest player, over the next year.”

Needham- Oxford Industries, Buy rating

“We upgrade OXM from Hold to Buy as we see lowered 4Q expectations as achievable and believe the company’s positive momentum will continue in 2020. OXM reported solid 3Q results but noted a deceleration for 4QTD on Dec. 11th, partly due to the challenge of the shorter Holiday shopping window. Industry results thus far point encouragingly to better demand in the days leading into Christmas. Our checks also indicate fairly well-controlled discounting, giving us confidence about 4Q. We also think that OXM has compelling growth drivers for each of its major brands in 2020 that can fuel sales.”

Buckingham- Archer Daniels Midland, Buy rating

“The near-term outlook for ADM is improving, reflecting a new Phase 1 U.S./China trade deal, strong savings from the Readiness Program and excellent growth from Nutrition division. With the potential aid of several improving 2020 micro/macro fundamentals, and self-help programs, we believe valuation and stock price downside risk is limited; the setup for stronger 2020 earnings growth is compelling, particularly for investors with a 12-18 month investment horizon … We believe the U.S./China Phase 1 trade agreement will gradually aid earnings across F20, but more specifically, during 4Q20 when U.S. crop prices are most competitive on a global basis.”

B.Riley FBR- iHeartMedia, Buy rating

“While our sense is that investors remain skeptical towards the radio broadcasting group, we see reasons to expect both healthy growth and multiple expansion for IHRT over the next year. Our upgrade is based primarily upon an increased long-term outlook for AEBITDA and FCF, versus our previous forecast. Additionally, despite our initial skepticism around Liberty Media’s/SIRI’s interest in acquiring IHRT, we now see, in a best-case scenario, Liberty’s interest evolving into a deal announcement sometime this year. Even without a deal, we believe that Liberty’s interest alone provides a sturdier floor for IHRT, relative to the rest of the group.”

Raymond James- Qorvo, Outperform rating

“We reiterate our Outperform rating on Qorvo and raise our price target to $135. The company posted a strong quarter and with a much better than seasonal guide on 5G strength in China, consistent with commentary from others. Qorvo was however the first to factor virus risk into guidance – while they haven’t yet seen any effects, they provided preliminary guidance for a weaker than seasonal June in an effort to remain conservative. Virus concerns aside, Qorvo’s 5G content story remains compelling, the stock’s valuation remains reasonable despite recent gains, and we do see a path to higher earnings power, particularly as the high volume handset tier converts to 5G.”

Baird- Aspen Technology- Outperform rating

“Shares of Aspen trading down 15% in response to a mixed F2Q report offer a very compelling entry point for best-in-class vertical software name. We believe stock can outperform as second-half results come in ahead of now reset expectations. There is historical precedent of deals being delayed but ultimately closing and lifting the stock higher. Meanwhile, the fact that “core” performance is driving the business is a meaningful positive that is being underappreciated.”

5 Top Stocks to Buy in February

Let’s face it, February can be a rough month. The holiday cheer has long faded away, and springtime still feels more like a distant dream than a coming reality. But there’s a silver lining to February’s gray clouds, and it’s the fact that now is the perfect time for investors to consider buying the stocks mentioned below.

All of these companies have either established themselves with stellar businesses or are quickly building out their position in new markets — and sometimes a little bit of both. So put away your natural-light therapy lamps for a moment and take a closer look at why Motley Fool contributors think ANGI Homeservices (NASDAQ:ANGI), CareTrust REIT (NASDAQ:CTRE), Anaplan (NYSE:PLAN), Medical Properties Trust (NYSE:MPW), and Netflix (NASDAQ:NFLX) are top stocks to buy this month.

An overlooked e-commerce marketplace

Jeremy Bowman (ANGI Homeservices): One of the best business models of the digital age has proven to be the online marketplace. This is the formula that has helped make Amazon one of the most valuable companies of all time, made eBay a cash machine since the dawn of the internet, and has driven the boom in Etsy‘s share price in recent years.

However, one stock that’s struggled since it emerged from the combination of HomeAdvisor and Angie’s List in 2017 is ANGI Homeservices. Like other marketplaces, ANGI connects buyers and sellers, in this case looking for cleaning, plumbing, and general contracting, among dozens of other service categories. For ANGI, this creates strong competitive advantages, through network effects that make the overall marketplace stronger with each new user, and switching costs that help keep service providers on the platform.

That model and the secular growth in online home services, which is expected to continue as more millennials buy homes, is one reason the company is targeting long-term revenue growth of 20% to 25%. However, now could be an excellent time to buy shares of ANGI as its fourth-quarter earnings report is on tap Feb. 5, and the stock is still trading at a discount from last summer after a temporary challenge caused shares to tumble.

In August, the stock plunged as the company slashed its profit guidance due to marketing error related to Google’s algorithm. ANGI recovered some of those losses after its third-quarter earnings report, but the stock would still gain nearly 50% if it recouped those August losses. The February earnings report presents a good opportunity to do that as the company can put the recent marketing-related headwinds further behind it, and it will give guidance for 2020, a year that management said it would be “investing into success.”  

Meanwhile, the overall economy remains strong and interest rates are low, favoring a strong housing market. Its long-term growth remains appealing with its leading position in online home services and the demographic shift in home ownership toward millennials.

My top stock to profit from America’s biggest demographic shift 

Jason Hall (CareTrust REIT): At their peak, America’s baby boomers were the most populous generation in the country’s history. It wasn’t until 2019 that millennials became the largest living U.S. population cohort. 

Here’s the thing: I’m not going to pitch you on some investment based on the growing role millennials will play in driving the economy. I think a significant — and potentially overlooked — opportunity is to invest in meeting the growing need to house and care for a rapidly growing senior population.

And the growth of America’s senior population is simply enormous. From 2010 to 2030, the 65-plus cohort will double from 40 million to 80 million, while improved health outcomes and better medical care will more than double the 80-plus population over the same period. 

CareTrust is positioned to be a big winner from this trend, developing and acquiring skilled nursing and senior housing properties to meet the needs of this growing population. It’s already proven a huge winner since going public, more than doubling the number of properties it owns, and generating almost 300% in total returns. 

More recently, the share price has fallen from the all-time high reached in 2019, pushing the dividend yield back above 4%. Considering the strength of its balance sheet — it’s one of the least-leveraged healthcare REITs out there — the opportunity for many more years of growth, and the recession-resistant nature of its business, CareTrust is a buy-now stock in my book. But don’t just take my word for it: CareTrust makes the cut as a top stock to buy in 2020. 

Cloud-based planning, made simple

Todd Campbell (Anaplan): In the past, financial planning required time-consuming coordination between multiple departments, such as sales, finance, operations, and the supply chain. Because data necessary for better planning was often siloed within different data solutions, such as legacy software applications or one-off Excel spreadsheets, getting mission-critical data from disparate teams could takes weeks or longer, resulting in planning decisions that were already behind the curve. That’s far from ideal — especially since business trends are moving increasingly faster and profiting from them is becoming more complex.

To break down barriers and increase the speed of planning, Anaplan markets a connected-planning solution that unifies data into one simple system that’s instantly accessible to everyone and responsive to changing inputs. Its ability to help managers make better decisions more quickly is resonating with enterprises that are increasingly deploying Anaplan throughout their business.

In the third quarter, total revenue was $89.4 million, up 44% year over year. Anaplan’s dollar-based net expansion rate (year-over-year same-customer spending) has exceeded 120% for over three consecutive years, including a 123% rate in Q3. Importantly, Anaplan is landing more big customers. The number of enterprises spending more than $1 million per year with Anaplan jumped 57% year over year in the quarter, and 324 of its 1,300 customers are now paying Anaplan over $250,000 per year, up from 228 customers the previous year.

Anaplan isn’t profitable yet, but it may only be a matter of time before the it’s in the black. Its operating margin improved to negative 9.9% in Q3 from negative 29.5% the year before, and its gross margin jumped 3.4 percentage points to 76%. Since the Forbes Global 2000 is the company’s target market, there’s plenty of business still left to win, and given how many of its existing customers are spending more every year on Anaplan’s solution, I think there’s good reason to be optimistic.

Healthy returns from hospital real estate

Matt DiLallo (Medical Properties Trust): Medical Properties Trust is a real estate investment trust (REIT) focused on owning hospital campuses. The company leases these properties to operators that pay it rent.

The main draw of Medical Properties is its dividend, which currently yields 4.6%. It’s on as solid a foundation as investors will find in the REIT world. For starters, the company only pays out about 63% of its cash flow to support that payout, which is low for a REIT as most pay out more than 70%. Medical Properties has a top-notch balance sheet, with a low leverage ratio for a REIT. Because of that, it has plenty of flexibility to acquire new properties.

That’s exactly what it has been doing over the past year. The company signed deals to acquire $6.4 billion worth of properties last year, which will boost its cash flow per share by 22%. Even after all those deals, it’s still in tip-top financial shape and, as of its latest update, had around another $2.5 billion of acquisitions in the works. The company will likely continue acquiring properties this year.  

Medical Properties’ briskly growing portfolio of cash-generating hospital buildings has richly rewarded its investors over the last year. Not only has it paid them a high-yielding dividend, but its stock has also soared nearly 28%, pushing the total return up to a market-beating 35%. With more growth in the hopper and an attractive valuation compared to other REITs even after its recent run, Medical Properties Trust appears poised to continue generating healthy returns. That makes it a great stock to buy this month, especially for investors seeking some income.

Don’t miss out Netflix’s video streaming momentum

Chris Neiger (Netflix): Netflix may be the dominant streaming video company, but investors shouldn’t make the mistake of thinking the company is finished growing. Netflix ended 2019 with 167 million subscribers, up 28 million from the year before. That’s impressive growth for a company of Netflix’s size, and it’s a good reminder that the video streaming market is nowhere near saturated.

Netflix’s 2019 subscriber growth was driven by new customers signing up for the company’s streaming service outside of the U.S. The company ended the year with 106 million paying international subscribers, an increase of 25 million from the previous year.

A growing subscriber base is important, but of course, investors want to see the company making more money from all of those gains as well — and that’s exactly what Netflix is doing. The video streaming giant’s sales for 2019 jumped 28%, thanks to higher subscription prices and international growth. Additionally, investors should also be pleased to see that Netflix has continually increased its operating margin over the past several years. At the end of 2019, Netflix’s operating margin reached 13%, up from 10% in 2018.

And if you’re worried that new video streaming competitors will take the wind out of Netflix’s sails, don’t be. Here’s what the company’s management said in its fourth-quarter press release: “Many media companies and tech giants are launching streaming services, reinforcing the major trend of the transition from linear to streaming entertainment. This is happening all over the world and is still in its early stages, leaving ample room for many services to grow as linear TV wanes.”

In short, as video streaming grows, it’ll cut into traditional TV offerings and won’t hurt established video streaming players like Netflix.

With Netflix still firing on all cylinders and plenty of room left for the company to continue growing its international subscriber base and increasing its operating margin, investors should strongly consider snatching up Netflix’s stock right now. Even with increasing video streaming competition, Netflix still dominates this market, and its continued growth proves that newcomers aren’t hurting the company’s business. 

3 Top Mid-Cap Stocks to Buy Right Now

Mid-cap stocks, generally defined as stocks with market caps between $2 billion and $10 billion, can offer investors the best of both worlds. They have enough room to deliver serious growth but still offer investors a certain degree of security, as companies of this size generally have proven business models and are profitable or on their way to profitability.

If you’re like Goldilocks and looking for a stock that’s not too big and not too small, keep reading to see why Stitch Fix (NASDAQ:SFIX), ANGI Homeservices (NASDAQ:ANGI), and Foot Locker (NYSE:FL) fit the bill.

Stitch Fix

If you’re looking for a company with disruptive potential, Stitch Fix has it in spades. The online clothier pioneered the online personalized styling service model and is the leader in its category. Stitch Fix’s core offering sends customers five apparel items at a time; they keep what they want and send the rest back.

This model has delivered steady growth for the company, and it envisions long-term revenue growth of 20% to 25% from adding new customers, expanding to new categories and geographies, and adding new ways to shop. Its five-item box has served as the base from which the company is expanding.

Stitch Fix is currently experimenting with direct-selling models like Shop New Colors and Shop Your Looks, the second of which uses data on customers’ past purchases to offer them a curated selection tailored to their preferences. Shop Your Looks is in its early stages, but it has proven to be a winner for Stitch Fix. The service leverages the company’s customer data and proprietary algorithms and eliminates the hassle of searching for new clothes online or in stores. 

Stitch Fix is profitable, though the company is currently focused on top-line growth. Now looks like a great time to buy the stock, as it’s trading well below its previous heights despite solid execution in recent quarters — the company has crushed earnings estimates in its last four reports. As more brick-and-mortar retailers close stores and online shopping grows, Stitch Fix will benefit and the stock will eventually respond, likely sooner rather than later.

ANGI Homeservices

One of the best opportunities that the market gives to long-term investors is when stocks plunge for short-term reasons. Such an event happened last August to ANGI Homeservices — the parent of HomeAdvisor, Angie’s List, and Handy — when profits tumbled due to challenges related to its marketing on Google. The company has largely solved those problems, yet the stock is still down more than 50% compared to where it was before that earnings report.

ANGI should have a long path of growth ahead of it as more millennials buy homes and turn to online marketplaces for home service needs such as kitchen remodels, painting, or just house cleaning. The company targets long-term revenue growth of 20% to 25% as it invests in popular new platforms like fixed-price services, which eliminates the hassle of communicating and haggling over pricing for both customers and service providers. The company recently returned Angie’s List to growth after taking it over in an IAC-backed merger in 2017. Meanwhile, its marketplace segment, anchored by HomeAdvisor, delivered 27% revenue growth in the most recent quarter.

Online marketplaces tend to be high-margin businesses once they reach scale, and ANGI should see improving profit margins as it grows its network and reaps the investments it’s currently making. The company’s fourth-quarter earnings report, which comes out on Feb. 5 and will also provide guidance for 2020, offers a chance for the stock to redeem some of its recent losses. Analysts are expecting break-even earnings and just 16.6% revenue growth to $325.4 million, giving the company a low bar to jump over.

Foot Locker

Brick-and-mortar retail is a tough business, but Foot Locker has an ace up its sleeve: The nation’s biggest sneaker retailer is a prized partner of Nike, and it derives about two-thirds of its sales from Nike products. The two companies are now collaborating on “Power” stores: shops that are bigger, more interactive, and offer some of Nike’s own proprietary technology. These kinds of stores offer the kind of experiential shopping that has become a draw for customers in the age of e-commerce. 

You also might be surprised to learn that Foot Locker’s comparable sales jumped 5.7% in its most recent quarter, thanks to a strong back-to-school season. This is a sign that it’s bucking the general brick-and-mortar malaise. Comps were up 4.7% in its stores and 11.4% online, driving adjusted earnings per share up 19%. E-commerce now makes up 15.3% of sales, demonstrating that the company is building a successful online business.

If Foot Locker kept up that momentum during the holiday season, the stock could surge. Shares currently trade at a P/E ratio of just 8, which has enabled the company to aggressively repurchase stock, reducing its shares outstanding by about 7% over the last year. The stock’s dividend yield is 4%, making it appealing for dividend investors.

While Foot Locker has closed some stores and faces some of the same challenges as other retailers, those headwinds seem more than priced into the stock now, especially given its third-quarter results. With the Nike partnership and momentum from the back-to-school season, Foot Locker shares could easily rise 50% just by recouping its 2019 losses.

NASA’s Spitzer Space Telescope is no more. Here’s what’s next for infrared astronomy.

The best infrared eye in the universe has closed, and scientists will need to wait at least a year before any similar instrument is at work again.

NASA turned off its Spitzer Space Telescope yesterday (Jan. 30), ending a 16-year mission. The agency at first stretched the observatory’s tenure to overlap with that of the next great infrared space telescope, the James Webb Space Telescope. But as that instrument continued to miss schedule targets, with a March 2021 launch currently targeted, NASA eventually concluded that a year’s gap in infrared observations of the universe wouldn’t harm science.

And so yesterday, NASA said farewell to the Spitzer and scientists said farewell to fresh data about the infrared cosmos.

Spitzer launched in 2003, designed for a 2.5-year mission. But like so many other NASA missions, it far outlived its original directive. Even after it ran out of the coolant needed to keep its most temperature-sensitive instrument working, Spitzer continued to gather valuable scientific data.

But Spitzer’s end has been coming since 2016, when NASA conducted a regular review of its missions and decided that it wasn’t worth operating the telescope once its successor came online. “The decision was made that the Spitzer mission should end as the James Webb mission was beginning,” Paul Hertz, director of the astrophysics division of NASA’s Science Mission Directorate, said during a news conference held on Jan. 22.

To that end, NASA extended Spitzer’s mission twice more, to keep pace with delays in launching Webb, settling on this week’s shutdown after Webb’s launch was scheduled for March 2021. “The time has come for the Spitzer mission to end as we move on to the launch of James Webb next year,” Hertz said.

The gap between telescopes could still lengthen; on Jan. 28, the Government Accountability Office released an oversight document about the James Webb Space Telescope reporting that the observatory had just a 12% chance of meeting the March 2021 launch target. Because of lost padding time in the project’s schedule, a more feasible launch date would fall in July 2021, the agency found.

And once the James Webb Space Telescope does launch, it won’t be quite the same. Although both observatories can sense infrared light, they aren’t quite interchangeable. Spitzer and Webb are targeted to two different ranges of infrared, with Webb primed to see shorter wavelengths — closer to visible light — than Spitzer did.

Trump’s 6 Words Have Social Security Beneficiaries Terrified

As you may have heard, Social Security, the nation’s most storied social program, is in a bit of a bind. Despite the fact that Social Security can’t go bankrupt (which is a testament to how the program generates income), the 2019 report from the Social Security Board of Trustees estimates that the program is facing a $13.9 trillion cash shortfall between 2035 and 2093. If nothing is done to correct this widening funding gap, then-current retirees and future generations of retired workers can expect a reduction to their payouts of up to 23%.

The Trustees report, which is published annually, has been warning Congress since 1985 that long-term (75-year) revenue generation would be insufficient to cover costs, yet lawmakers haven’t made any significant strides to overhaul the program. But according to recent commentary from President Trump, this could change if he’s elected to a second term in the Oval Office.

For years, Trump has leaned on the economy to strengthen Social Security

Since taking office three years ago, President Trump has primarily relied on indirect factors to influence Social Security and strengthen the program. Here’s what Trump had to say at the Conservative Political Action Conference (CPAC) in March 2013, less than four years before winning the presidential election:

As Republicans, if you think you are going to change very substantially for the worse Medicare, Medicaid, and Social Security in any substantial way, and at the same time you think you are going to win elections, it just really is not going to happen … What we have to do and the way we solve our problems is to build a great economy.

This is to say that Trump doesn’t believe direct solutions are a smart move for politicians, given that any direct changes to the program will result in some group of people ending up worse off than they were before. These people could wind up voting elected officials out of office.

Instead of actively angling to change the Social Security program, the president has pushed for measures that he believes will lift U.S. economic growth. The passage of the Tax Cuts and Jobs Act (TCJA) in December 2017 is a perfect example of this. Since Social Security’s 12.4% payroll tax on earned income provides the bulk of revenue for the program ($885 billion out of $1 trillion collected in 2018), a stronger economy should lead to more payroll tax being collected.

For the past two years, the TCJA appears to have provided the U.S. economy with a modest boost, although it’s important to realize that indirect solutions are not a long-term answer to Social Security’s fundamental flaws. That’s what has President Trump considering the possibility of real Social Security reform.

Here’s what Trump said that has Social Security beneficiaries worried

Last week, at the World Economic Forum in Davos, Switzerland, President Trump was interviewed by CNBC Squawk Box host Joe Kernen, with the two discussing everything from interest rates to the economy over a 20-minute span (link opens YouTube video of the interview). Toward the end of the interview (17:53 mark in the video, for those curious), Kernen got in one last question about “entitlements,” which includes such programs as Social Security and Medicare.

Kernen asked the president, “One last question: Entitlements ever be on your plate?”

To which Trump replied, “At some point they will be.”

These six words have completely shaken Social Security beneficiaries to the core, especially considering that Trump has been adamant about avoiding direct solutions since his presidential campaign began in 2015. The reason? Existing and future beneficiaries fear benefit reductions.

To be crystal clear, at no point in President Trump’s response did he state or imply that he or his administration would be looking to cut benefits for current retirees or future generations of retirees. Instead, Trump pivoted the discussion (on multiple occasions) to the expectation that U.S. economic growth is expected to pick up in a big way during the second half of 2020.

However, just because Trump didn’t directly say his administration would look to reduce Social Security’s outlays, doesn’t mean the evidence isn’t there.

If reelected, Trump is likely to push for direct Social Security reforms

Should Trump win a second term, there are three factors to suggest he would look to reduce Social Security’s expenditures (i.e., reduce lifetime benefits paid by the program).

First, there’s the core proposal of the Republican Party to fix Social Security, which Trump would be likely to support. Whereas Democrats favor raising additional revenue by increasing taxation on well-to-do workers, members of the GOP believe that gradually increasing the full retirement age to as high as age 70 would be the best move. The full retirement age is the age at which you become eligible for 100% of your monthly payout, as determined by your birth year.

If the full retirement age were to increase from its peak of age 67 in 2022 to say 70, it would require future generations of retirees to either wait longer to receive their full payout or to accept a steeper monthly reduction by claiming early. No matter their choice, the program’s long-term outlays would be reduced, and future generations of workers would receive lower lifetime benefits.

Second, Trump’s presidential budget proposals have previously called for cuts to the Social Security program. In March, the president’s federal budget proposal called for a $26 billion cut (in aggregate) to Social Security between 2020 and 2029. A good portion of this reduction was to come from the Social Security Disability program, with a proposed adjustment that would reduce retroactive pay to six months from the current 12 months. If adopted, this would reduce program outlays by an estimated $10 billion by 2029.

Third and finally, Mick Mulvaney, the director of the Office of Management and Budget, has not been shy about his plans to coerce the president to make tough decisions. Mulvaney is a fiscal hard-liner, and he strongly believes that entitlement reform, perhaps including cuts, should be on the table. Mulvaney is one of the president’s top advisors, and his influence could be paramount if Trump wins reelection.

Three important things to remember

While I don’t believe there’s any doubt that Trump’s tendency would be toward reducing long-term outlays when it comes to Social Security, there are a number of other factors that current and future beneficiaries need to consider.

For one, we can’t count our chickens before they’ve hatched. The election is still nine months away, and Trump stated at CPAC in 2013 that it’s akin to political suicide to directly go after Social Security while trying to win an election. Trump would first have to win the 2020 presidential election for any of the above context to have any meaning. In short, don’t get too far ahead when discussing the ramifications of what Trump said this past week while in Davos.

Secondly, even if Trump wins reelection and chooses to tackle Social Security reform, he’ll find the sledding difficult if Democrats maintain control of the House and/or if Republicans don’t gain significant ground in the Senate. Trump will not be able to unilaterally implement changes to the Social Security program, which should give certain beneficiaries a sigh of relief. The fact is that a polarized Congress (at least on party lines) makes Social Security reform highly unlikely in the near term.

Lastly — and I know this is going to sound crazy — the long-term cuts that beneficiaries fear are very much part of the puzzle to fixing Social Security. The addition of new revenue through taxation, as proposed by Democrats, would help solve a lot of Social Security’s near-term funding concerns, while the GOP’s proposals would aid in reducing long-term outlays and counteracting increased life longevity and lower birth rates. In effect, Democrats and Republicans may dislike what their opposition has to offer, but both are very much needed to make Social Security a stronger program.

Bezos Wealth Rises $7.9 Billion on the Worst Day of the Year for Market

On a day when the S&P 500 fell the most since October, the world’s richest person got $7.9 billion richer.

Jeff Bezos’s fortune swelled to $124.2 billion Friday as shares of his Amazon.com Inc. surged 7.4%, a day after the largest U.S. e-commerce company stunned investors with a fourth-quarter profit that far exceeded Wall Street estimates. His net worth climbed $9.3 billion through the first month of the year, according to the Bloomberg Billionaires Index.

Read more: Amazon holiday results crush Wall Street estimates; shares surge

Bezos, 56, owns about 12% of Amazon’s outstanding stock, making up the bulk of his fortune. His ownership of closely held Blue Origin accounts for about $6.2 billion. Friday’s surge pushed Amazon’s market value to $999.96 billion.

His ex-wife, MacKenzie Bezos, 49, owns about 4% of the Seattle-based retailer. The world’s fifth-richest woman now has a net worth of $40 billion.

See also: Elon Musk adds $2.3 billion to his fortune in 60 minutes

Bezos wasn’t the only tech titan whose net worth changed dramatically this week. Elon Musk’s swelled by $2.7 billion since Wednesday, after shares of his Tesla Inc. surged on better-than-expected results and an accelerated timetable for the electric-vehicle maker’s new Model Y crossover SUV.

Mark Zuckerberg’s fortune tumbled $5.9 billion on the week after Facebook Inc. posted its slowest-ever quarterly sales growth.

The Hummer Is Coming Back — As An Electric Vehicle

Around the turn of the millennium, General Motors made a decision: Electric cars were out. Giant trucks were a hit.

So the company abandoned its pioneering electric vehicle — not just stopping production but pulling cars off the road and crushing them. And it went all-in on the gas-guzzling military-style behemoth called the Hummer.

The polarizing vehicle hummed along for a little while, before the recession and skyrocketing gas prices killed it.

Now, the Hummer is making a comeback that once would have seemed improbable, even laughable.

GM is reviving the Hummer brand. But this time it’s going to be electric.

GM is announcing the Hummer’s resurrection in an ad airing during the Super Bowl this Sunday. The vehicle itself — an electric pickup — will be revealed in May, with production beginning in late 2021.

The Hummer carries a hefty load of cultural baggage, says Marty Padgett, an editor at The Car Connection and the author of Hummer.

The brand — descended from the military Humvee and famously beloved by Arnold Schwarzenegger — was made by AM General in the 1990s, before General Motors acquired the brand in 1999. Production of the GM Hummer ramped up as GM was shutting down its EV1 electric car program.

The company had “no foresight to think that maybe they should also keep their electric car programs alive,” Padgett says. In GM’s view, “trucks were selling amazingly well and electric cars were nothing more than an experiment.”

Then GM heavily promoted the Hummer and the slightly less-gigantic H2 as America was launching the war in Iraq.

“Advertisements for the GM Hummer were appearing in between CNN segments on the invasions,” Padgett says. “What other consumer product has launched in such a controversial way, at such a controversial time?”

If the rise of the Hummer was a sign of the times, its electric revival is a sign of how times have changed.

Americans are, once again, wild for giant trucks and SUVs. But Tesla definitively proved that electric cars are not just an experiment. And — inspired by Tesla — carmakers are making electric vehicles and highlighting performance, not efficiency and eco-friendliness.

“I have this theory that the electric car segment is getting bro-ified,” Padgett says. “They’re appealing to a very masculine demographic and they’re doing it overtly.”

In fact, Arnold Schwarzenegger — the epitome of the manly Hummer driver — is an electric vehicle enthusiast who already owns an electric Hummer. It was refitted for him by an Austrian startup.

But the new GM vehicle might look a little different than Schwarzenegger’s custom vehicle — we don’t know much about the appearance yet.

We do know the new Hummer will be a pickup. And it will have a ton of competition.

“There is suddenly going to be a slew of electric trucks, almost as many as … the full-size trucks that exist right now,” says Jessica Caldwell, the head of Industry Analysis at Edmunds. Among them are the Tesla Cybertruck, Ford’s F-150, and the startups Rivian, Lordstown Motors and Bollinger.

Trucks are tremendously popular. The top three best-selling vehicles in America are all pickups. And they’re not cheap.

“We think of them as workhorses, kind of that American icon,” Caldwell says. “But they’re expensive now. The average large truck transacts at almost $50,000.”

Add premium options and you can easily drop more than $70,000 on a pickup, even without an electric motor. So automakers — who are struggling to make money off smaller cars, particularly electric cars — welcome high-margin pickups as a major moneymaker.

“The whole market is going to electrification,” Caldwell says, and automakers like GM “don’t want to lose a part of that very lucrative truck business.”

By putting this new electric pickup in the GMC family and giving it a familiar name, GM is positioning it as a premium pickup, Caldwell says.

So while the cost, like much else about the vehicle, has not yet been announced, expect a hefty price tag — and the possibility that it will make GM a Hummer-sized pile of money.

error: Content is protected !!