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New rules that will be beneficial for some Medicare enrollees are going into effect Jan. 1.
The idea is to eliminate any delays in coverage that some new beneficiaries experience, depending on when they enroll.
Additionally, individuals who didn’t sign up when they were supposed to due to “exceptional circumstances” may be able to qualify for a special enrollment period.

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For some individuals, signing up for Medicare hasn’t translated into coverage starting right away.
That’s poised to change: Beginning next year, current months-long delays in certain Medicare enrollment situations will be eliminated. Additionally, would-be beneficiaries who missed signing up when they were supposed to due to “exceptional circumstances” may qualify for a special enrollment period.

Such delays can mean facing a gap in health insurance — which in turn may translate into either being unable to get needed care due to financial constraints or paying out of pocket for care, whether planned or an emergency.
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“It’s really about having access to pretty essential health services,” said Casey Schwarz, senior counsel for education and federal policy at the Medicare Rights Center.

Signup rules for Medicare can be confusing

Medicare’s enrollment rules can be confusing at best and costly at worst, experts say.
For people who tap Social Security before age 65, enrollment in Medicare (Part A hospital coverage and Part B outpatient care coverage) is automatic when they reach that eligibility age.

Otherwise, you are required to sign up during your “initial enrollment period” when you hit age 65 unless you meet an exception, such as having qualifying health insurance through a large employer (20 or more workers).

One change applies to initial enrollment periods

Your initial enrollment period, as it’s called, starts three months before your 65th birthday and ends three months after it (seven months total). According to the law, when coverage begins for a Medicare enrollee is dependent on which month that person enrolls. If you enroll before the month you turn 65, coverage starts the first of your birthday month; enroll in your birthday month and coverage starts the following month.
The new rules eliminate the delay that new beneficiaries have faced if they enrolled toward the end of the seven-month period: Enrolling a month after hitting age 65 has meant coverage takes effect two months after that. Waiting longer than that, but still in that seven-month window, has meant a coverage delay of three months.
Starting next year, coverage will take effect the month after you sign up.

Another coverage delay will disappear, but not penalties

If you miss your initial enrollment period and don’t qualify for a special enrollment period, you generally can only sign up during the first three months of the year during a “general enrollment period.”
Going that route also has meant waiting until July for coverage to take effect. Next year, it will be effective the month after you sign up.
However, in that situation, there may still be a late-enrollment penalty. For Part B, it’s 10% of the standard premium ($164.90 for 2023) for each 12-month period you should have been enrolled but were not.

Part D (prescription drug coverage) also comes with a late-enrollment fee. It’s 1% of the “national base premium” ($32.74 in 2023) multiplied by the number of months that you went without Part D since your enrollment period (if you didn’t have qualifying coverage in place of it). 
In both cases, late enrollment penalties are generally life-lasting.

‘Exceptional circumstances’ may offer flexibility

Starting next year, individuals may be able to sign up outside of current enrollment periods if they have “exceptional circumstances.” This is already a flexibility available with Part D, as well as Medicare Advantage Plans (which deliver Parts A and B and usually D), Schwarz said.
“It’s really designed to provide relief for people who are impacted by exceptional situations and need access to health insurance,” she said.
Additionally, beneficiaries who qualify for the special enrollment period will not face Part B late enrollment penalties.

Until this rule change, the only way to qualify was if a government official provided bad information or made a mistake that caused you not to enroll.
“There are situations where … people make mistakes,” Schwarz said. “So these rules allow some flexibility.”
Some qualifying circumstances could include an employer providing inaccurate information about Medicare enrollment, or they were in a situation where it was impossible or impractical to enroll, such as being in a natural disaster or incarcerated.

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With the legal challenges to Biden’s student loan forgiveness plan mounting, the administration might extend the payment pause on the monthly bills yet again.
“I’m sure they have to be considering it as an option,” said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers.

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With the legal blows to President Joe Biden’s student loan forgiveness plan mounting, it’s possible that the administration could extend the payment pause on the monthly bills yet again, experts say.
“I’m sure they have to be considering it as an option,” said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers.

If the president’s policy remains blocked in the courts by the end of the year, higher education expert Mark Kantrowitz said, “the Biden Administration is likely to further extend the payment pause.”
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The Washington Post reported this week that officials in the White House are beginning to discuss the possibility of another extension if the lawsuits continue to thwart its loan forgiveness plan. It would be the eighth time borrowers have been given more time.
Federal student loan payments have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. Resuming the bills for over 40 million Americans will be a massive task, and the Biden administration had hoped to smooth the transition by forgiving a large share of student debt first.
However, since the president announced his plan in August to cancel up to $20,000 for tens of millions of borrowers, conservative groups and Republican states moved quickly to try to block it. The U.S. Department of Education closed its student loan forgiveness portal last week after a federal judge in Texas called Biden’s plan “unconstitutional” and struck it down.

Biden’s plan is also on hold after six GOP-led states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — asked the courts to stay the policy while its legal challenge against it unfolds.

“Courts have issued orders blocking our student debt relief program,” according to a note on the forgiveness application page at Studentaid.gov. “As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.”
Before the portal was closed, some 26 million Americans had applied for the relief. Under the president’s plan, more than 10 million borrowers were projected to get their entire student loan balance erased.
“The Biden Administration has promised forgiveness to tens of millions of borrowers who will be upset about having to make payments on loans that they expected to be forgiven,” Kantrowitz said.
The White House declined to comment.

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Traders on the floor of the NYSE, Sept. 14, 2022.
Source: NYSE

As we see valuations soften in many parts of the market today, it can feel like an uncertain time for investors, especially in technology. 
However, on close examination, investing specifically in enterprise software will continue to be one of the best uses of capital anywhere in the financial and technology markets. The current environment will likely continue to create opportunities, the same way past dislocations have done. Several factors play into this scenario.

As we have seen, enterprise software is a disruptive force with the potential to unlock unprecedented productivity and innovation. Like the physical assets that propelled the business world in centuries past, software and tech-enabled solutions are transforming the way we live, work and learn, revolutionizing our economy in the process. 
The pandemic accelerated reliance on enterprise software, as companies turned to technology to connect employees and customers, conduct meetings and facilitate payments. This has led to a fundamental shift in business practices and a reprioritization of the expenses that companies consider core to their operations.
The pandemic also set into motion an unprecedented environment for valuations as less selective, inexperienced investors focused on the potential for multiple expansions and short-term returns over the underlying quality of companies. At the same time, many general partners sacrificed discipline to chase frothy valuations, rapidly increasing their deployment pace and exhausting funds over a small window of time. I suspect those who took this approach may have left themselves overly exposed to changes in the market.

Not all technology is created equal

Not all technology is created equal. Consumer software is subject to individuals’ spending habits, which naturally tighten during inflationary times.
Conversely, as more businesses face commodity and wage inflation, they recognize the value that enterprise software can deliver to help manage the cost of day-to-day workflows while increasing efficiency. Businesses will continue to implement software that directly enhances their operations – in areas such as business continuity, data protection, secure remote access and automation. We can already see this dynamic at play as consumer-driven stocks have been harder hit than their B2B counterparts.

According to an Evercore ISI study, 92% of respondents are expecting to increase their IT spending over the next six to nine months – up from their January survey (83%). This indicates that IT spending is less discretionary today than in previous cycles. As a result, it’s expected that software will continue to be the fastest-growing sector in the economy with a market capitalization of $34 trillion by 2025, Vista Equity Partners found.

Private markets advantages and enterprise software

Shifting economic conditions do not change the structural advantages of investing in the private markets, particularly within enterprise software, where about 97% of companies are private, according to Vista. The public markets often hold even the most dynamic and visionary founders and CEOs to impossible timelines and unrealistic quarterly expectations. They demand short-term growth at all costs.
Conversely, privately held companies benefit from patient, strategic ownership where they can implement operational best practices with an eye toward sustainable, long-term value creation.

Selecting the right investments

That said, even in the private markets, generating favorable outcomes in turbulent times requires investors to execute against two factors.
First, they must know what to buy. Second, they must understand how to scale an organization. It sounds simple, but in a changing valuations environment determining a fair price requires a discerning eye, rigorous due diligence, and unwavering discipline.
It means knowing the difference between a fundamentally sound company versus a business that might look promising but is loaded with less obvious issues like technical debt, which can slow – or jeopardize – the integrity and growth of software and therefore an investment.

A partnership with private capital

Beyond asset selection, a true partnership approach between an investor and a founder or management team must exist to ensure an investment reaches its full potential. Investors with experience and expertise in the industry understand how software companies operate, the systems needed for success, what makes a successful management team and how to scale and grow these businesses. They can help the management team enhance their position by accelerating operational excellence, identifying M&A opportunities, investing in product innovation and enabling a path for sustainable growth.
On the flip side, there is no replacement for a founder’s passion, vision and innate understanding of their business. The best investors know how to channel this knowledge and arm the founder with the right tools and processes to thrive. When it works, the positive dynamic is not just felt by those sitting in boardrooms – it’s apparent throughout the whole company, creating a workplace dynamic that cultivates and retains the best talent.
As the digital economy continues to expand, governments and consumers globally have embraced the potential opportunities that technology offers. Enterprise software will be crucial in shaping the future. When partnered with private capital, the result will be a stronger economy with an innovative and adaptable infrastructure — one that’s ready to tackle the challenges of this century and to define the possibilities of the next.
Robert F. Smith is the founder, chairman and CEO of Vista Equity Partners, a leading global investment firm that invests in enterprise software, data and technology-enabled businesses. The firm has over $94 billion in assets under management as of June 30 and a portfolio of 85 companies that serve over 300 million users and employ over 90,000 people worldwide.

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As the Federal Reserve kicks up interest rates, what retailers may charge you for a store credit card is reaching new highs.
Here’s what to think about before opening a new line of credit while shopping this holiday season.

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That offer for a store credit card may sound tempting as you’re shopping this holiday season.
But you may want to think twice before you accept.

As the Federal Reserve raises interest rates, credit card annual percentage rates — a measure for the yearly cost of borrowing money — are climbing higher. That is especially true for retail credit cards, which tend to charge the most.
The most expensive retail credit cards may come with a 30.74% annual percentage rate, according to Ted Rossman, senior industry analyst at CreditCards.com, who calls the rate “crazy high.”
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Meanwhile, the average retail credit card charges 26.72%. Many other cards are charging 29.99%.
Credit card interest rates more broadly recently soared to 19.04%. That rate is the highest since Bankrate.com started tracking them in 1985, according to Rossman.

For retail credit cards, there has long been an unwritten rule among issuers that they will not go over the 30% annual percentage rate, likely for fear of scaring potential customers away, according to Matt Schulz, chief credit analyst at LendingTree.
“Given how quickly the Fed has raised rates and how often, we’re starting to finally see that ceiling crack a little bit,” Schulz said.

Consumers who are grappling with historic high inflation may also be tempted to open these lines of credit to give their holiday budgets some wiggle room. More than a third — 35% — of respondents to a LendingTree survey said they are at least somewhat likely to apply for a store credit card this holiday season, up from 29% a year ago.
But experts say you should carefully weigh the pros and cons before applying.
The value of an offer for 15% to 20% off your first purchase could be overshadowed by a higher annual percentage rate.
What’s more, if you can’t pay off the balance every month, you may be in for some expensive charges on your balance. Plus, there are other factors to weigh when determining whether the rewards will pay off.

1. Consider opportunity cost

D3sign | Moment | Getty Images

When it comes to retail credit cards, there are generally two kinds: lines of credit that apply to a specific retailer, or other co-branded cards with credit card providers such as MasterCard or Visa that can be used more generally.
For a one-brand card to make sense, it should be a store you frequent often.
“You have to be a regular shopper to make this worth it,” Rossman said.
If you’re making a big purchase, such as buying several new appliances, the discount may be meaningful, so long as you are able to pay off the balance before accruing significant interest charges, Rossman said.
Still, you may want to weigh whether the rewards using a more general purpose card may be more generous or better match your spending style, he said.

2. ‘Understand what you’re getting into’

Opening a retail credit card can be a spur-of-the-moment decision when checking out at the store.
But before you accept the offer, you should do some due diligence, according to Schulz.
“It’s really important that you understand what you’re getting into before you apply,” Schulz said.
If the checkout offer sounds interesting, go home and research what it entails, particularly with regard to interest and fees. Then, if you still want it, you can still apply for it the next time you’re in the store.
That way, you’ll be making a more informed choice and be less likely to regret your decision, Schulz said.

3. Be wary of deferred interest

As inflation continues to surge, hitting 8.5% in the U.S. in March, it’s important find ways to protect your savings.

Some store credit cards offer what is called deferred interest, with a 0% introductory rate.
Notably, if that term expires and you have an unpaid balance, the credit card company can go back and charge you for all of the interest you would have accumulated, Rossman noted.
“Be especially wary if a store card is offering a deferred interest promotion,” Rossman said. “That retroactive interest can really hit you.”

4. Tackle unpaid debts

It’s not only new retail cards that are charging higher interest rates. Borrowers with existing retail credit cards may also see the rates they are charged go up soon, Schulz said.
As interest on unpaid debts also kicks up more generally, credit card holders would be wise to take a few steps to reduce their burdens.
First, strive to pay down as much of those balances as you can, according to Schulz.
Next, consider a 0% balance transfer card.

People don’t realize how good their chances are of getting their rate reduced.

Matt Schulz
chief credit analyst at LendingTree

“It may be the best tool that you would have in your tool belt for fighting credit card debt, because it can give you up to 21 months without accruing any interest,” Schulz said.
Those offers may not be as generous as the lending market tightens, which may include higher one-time balance transfer fees or shorter durations for the 0% rate, Schulz said.
Finally, try simply asking your current lender for a lower annual percentage rate.
A LendingTree survey from earlier this year found 70% of those who tried this were successful. But the key is you have to try, Schulz said.
“People don’t realize how good their chances are of getting their rate reduced if they just take the time to call,” Schulz said.

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Investors purchased nearly $7 billion in Series I bonds in October, according to the U.S. Department of the Treasury.
If you’re one of the masses of new I bond owners, there are a few things to weigh before cashing in your assets, experts say.

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If you’re one of the masses of new Series I bond owners, there are a few things to weigh before cashing in your assets, experts say.  
Investors purchased nearly $7 billion in I bonds in October, according to the U.S. Department of the Treasury, with $979 million flooding into I bonds on Oct. 28, the deadline to lock in 9.62% annual interest for six months.     

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You can’t access the money for at least one year and there’s a penalty for redeeming I bonds within five years. If you cash in your I bonds before that five-year mark, you’ll lose the previous three months of interest.  
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“Most October I bond purchasers should not cash out until January 2024,” said Jeremy Keil, a certified financial planner with Keil Financial Partners in Milwaukee.
For example, if you bought I bonds in October, you can earn a full year of interest, taking into account the three-month penalty for withdrawal before the five-year mark, by waiting 15 months (rather than just 12) until January 2024 to redeem.

However, depending on future I bond rates — compared to other options for cash — it may be worthwhile to keep your I bonds beyond just one year and three months, Keil said.

“You should only cash out when you don’t like the interest [rate],” he said. Of course, you’ll want to consider your goals, risk tolerance and timeline for the money when deciding whether to redeem.

How I bond interest rates work

Backed by the U.S. government, I bonds don’t lose value and earn monthly interest with two parts: a fixed rate and a variable rate. The fixed rate may change every six months for new purchases but stays the same after buying, and the variable rate shifts every six months based on inflation. 
While the Treasury releases new rates every May and November, the variable rate depends on your purchase date. Although the annual rate changed to 6.89% on Nov. 1, you could still have secured the previous 9.62% rate for six months by purchasing by Oct 28.

For example, if you purchased I bonds in October, you’ll receive 9.62% annual interest for six months. In April 2023 you’ll start earning 6.89% annual interest for the next six months.
Twice per year, the Treasury adds interest earned from the previous six months to your original investment.
However, if your I bonds are less than five years old, the value in TreasuryDirect excludes the previous three months of interest, explained Jonathan Swanburg, a CFP at Tri-Star Advisors in Houston.

Why it’s better to redeem early in the month

As you weigh when to redeem your I bonds, you’ll also want to consider the timing within the month.
If you purchased I bonds near the end of October, you get credit for the full month, Swanburg said, meaning you can cash out as early as Oct. 1, 2023 next year.
What’s more, “I Bonds only accrue interest on the first day of the month,” Swanburg said, so there’s no benefit to cashing out later in the month.

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The consumer price index reading for October was cooler than expected, fueling hope that inflation may further ease in coming months.
However, housing may dampen improvement due to a lag effect related to rent and home prices.
Shelter is the biggest part of consumers’ budgets and accounts for a third of CPI.

An ‘open house’ flag is displayed outside a single family home on September 22, 2022 in Los Angeles, California.
Allison Dinner | Getty Images

There are signs inflation may fall further in coming months, but housing threatens to mute any improvement.
The consumer price index, a key barometer of inflation, rose 7.7% in October from a year ago. While still quite high by historical standards, that annual reading was the smallest since January.

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The monthly increase was also smaller than expected — giving hope that stubbornly high inflation, and the negative impact it’s had on consumers’ wallets, may be easing.     

Yet the cost of shelter jumped by 0.8% in October — the largest monthly gain in 32 years. That may seem counterintuitive at a time when many observers have said the U.S. is in a “housing recession.”
But shelter inflation — as reflected in the CPI, at least — is likely to stay elevated for several months to a year given its importance in household budgets and the intrinsic dynamics of rental and housing markets, economists said.
“As the housing market cools, this category will also ease but we may have to wait until next year before it meaningfully dampens headline inflation,” said Jeffrey Roach, chief economist for LPL Financial.

Housing is the biggest piece of household spending

The U.S. Bureau of Labor Statistics, which issues the CPI report, breaks the “shelter” category into four components: rent, lodging away from home (e.g., hotels), tenants’ and household insurance, and owners’ equivalent rent of residences.

Rent and “owners’ equivalent rent” are by far the most significant.   

The latter tries to put homeowners on parity with renters. It essentially reflects what homeowners would themselves pay to rent their house, said Cristian deRitis, deputy chief economist at Moody’s Analytics.
Housing is the single biggest chunk of spending for the average consumer. The overall CPI weighting reflects that: Shelter accounts for 33% of it, the most of any category. Shelter therefore has an outsize impact on overall inflation from month to month.
The shelter category is up 6.9% in the last year.

The rental and housing markets are cooling

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Flagging demand has led home and rental prices to cool or moderate in many areas of the U.S.
New U.S. home listings in the month, through Nov. 6, were down 17.5% compared to the same period a year earlier, according to Redfin, a real estate brokerage. The typical sales price, $359,000, was down over 8% from its $392,000 peak in June, according to Redfin.
Mortgage demand has fallen as rates steadily climbed to a recent peak over 7%, though rates declined sharply last week.
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Meanwhile, rental inflation has slowed in 2022 from its breakneck pace last year, Zillow data suggests.
Americans paid an average $2,040 market rent as of Oct. 31, according to the Zillow Observed Rent Index, which is seasonally adjusted.
That rent price was up 0.31% from a month earlier, on Sept. 30. But the pace of that growth has slowed for four consecutive months. By comparison, rents had jumped by about 1% in the month from end-May to late June. Rental inflation touched 2% a month in July and August 2021, according to Zillow data.

Why shelter prices lag

The CPI for “shelter” has historically lagged home price changes by four quarters, which suggests that shelter “will continue to put upward pressure on overall inflation through the first half of 2023,” according to deRitis.
The lag effect is largely due to how long it takes for leases to roll over into a new contract. Landlords typically renew leases every 12 months, which means current price dynamics won’t be reflected in new contracts for a year.
In this sense, housing is somewhat of an outlier among other CPI categories. Consumers don’t agree to pay the same price for chicken or eggs for a whole year, for example.
“Housing has some unique aspects to it,” deRitis said.
And rent tends to be “sticky,” according to economists — which means the total dollar amount of one’s monthly rent generally doesn’t decline; it tends to stay the same or increase with each new lease.

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How a company handles a layoff can have a major impact on its future success.
Experts advise treating departing employees with respect and empathy.
Leaders should never say, “[W]e can do more with less,” said Eric McNulty, who teaches crisis leadership at Harvard University.

High-profile layoffs at Meta and Twitter and planned cuts at Disney have heightened concerns on the part of managers and senior executives at employers nationwide who are struggling with how to lead a team through a round of corporate downsizing. 
How a company handles a layoff can have a major impact on its future success. Poorly managed, a reduction in the workforce can damage a company’s reputation.

“You don’t want those you just laid off to go now splatter all over Glassdoor or somewhere else how horrible you are,” said Eric McNulty, associate director of the National Preparedness Leadership Initiative at Harvard University. 
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Former employees could go on to be future customers, partners or colleagues.
“You may actually want these people back or refer people back to you later when you’re once again hiring,” McNulty said. “So you want to have that alumni network in good shape.”

Be straightforward and transparent

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When announcing layoffs, experts say, business leaders being both straightforward and transparent about the reason for the job cuts and their impact is an essential first step.

“Be clear, be careful and be compassionate,” said McNulty, co-author of “You’re It: Crisis, Change and How to Lead When It Matters Most.”
“Make sure people understand why you’re doing this,” he added. “Make the business case to them and not the usual corporate speak of ‘market conditions.'” 
Leaders should also explain “other options they considered, how they hope to not have to make the decision again and how they are treating impacted employees,” said Paul Wolfe, a human resources advisor and board member at PayScale.

Communicate with empathy

Alistair Berg | Digitalvision | Getty Images

Messages regarding layoffs should come from individual leaders who are “front and center,” not “HR” or “leadership,” said Jennifer Benz, a senior vice president at the benefits communications firm Segal Benz.
Leaders need to “show empathy” and be careful not to focus on their own feelings “rather than being sympathetic to the situation they have created for their workforce,” she said. 
Wolfe said one-on-one conversations are better than group meetings in discussing layoffs with your team, and planning the logistics of communications is also important.
“Ensure system access and removal from directories does not happen before the employees are communicated to,” Wolfe said. “I respect companies protecting their resources but how they treat impacted employees is very telling to employees that are still working there.” 
“These employees were not criminals and should not be treated as such,” he said.

Spell out the details

Don’t make employees who have been cut do the legwork when it comes to understanding severance pay, job placement or reskilling and upskilling support, health coverage and other benefit information, experts said. Spell it all out — and be ready to answer questions. 
Laid-off workers may ask for more information or request other perks, and leaders should have the answers. Columbia Law School professor Alexandra Carter recommended companies be ready if employees ask to provide a letter or formal email from the HR department stating a departing employee was laid off — and not fired for cause or performance. 

Be mindful of remaining workers’ concerns

Companies should “recognize this is a very difficult time for people who remain with the organization” as well, Benz said. “Make sure managers and leaders are available for remaining employees and can be clear about the future without overpromising.”
“Reinforce support resources, including mental health benefits,” she added.
Inform remaining workers about the changes that may need to be made in light of job cuts.
“Talk about what we are going to stop doing now that we have cut a big part of this organization until we figure out how we can work as effectively as possible,” McNulty said.

Benz said business leaders should be clear about the future, and make sure any promises are realistic and will be followed by action.  
What should leaders not say? “We should never be saying we can do more with less,” McNulty said. “If you could do more with less, you should have been doing it before.” 

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Apple CEO Tim Cook visits the Apple Fifth Avenue store for the release of the Apple iPhone 14, New York City, September 16, 2022.
Andrew Kelly | Reuters

The fall rally seems to have regained its strength this past week.
A better-than-expected reading of the consumer price index last week lifted investor sentiment and pushed the Dow Jones Industrial Average to a 1,200-point jump on Thursday. The gains continued on Friday, and all three major averages advanced for the week.

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Nevertheless, investors need to keep a level head and a focus on the long term as they pick out stocks for their portfolios.
Here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Apple

In an unusual move, Apple (AAPL) announced that the company is expecting lower production numbers for the iPhone 14 as a consequence of repeated lockdowns in China. Granted, Apple revenues are likely to take a hit over the next quarter or two, but the longer-term outlook for the business with multiple secular growth avenues does not change.
JPMorgan analyst Samik Chatterjee agrees. Acknowledging the downside risks for the coming few weeks as Apple grapples with reduced capacity at its largest production site, the analyst believes that brand loyalty will come into play to ease the pressure. That is, iPhone consumers are ready to wait longer for delivery. This will ensure that among all other Apple products, iPhones will face the least demand destruction as a result of supply pushouts. (See Apple Financial Statements on TipRanks)
Chatterjee also shows how risks are spread out over the longer term, and short-term disruptions shouldn’t be a deterrent for investors. “Supply chain challenges have been frequent the last couple of years, and there is limited evidence that delays in shipping devices have had any impact on overall volumes for a product cycle (example: iPhone 12 or iPhone 13) over a multi-quarter period,” the analyst said.

Chatterjee reiterated his buy rating as well as his $200 price target on Apple. The analyst has been ranked 724th among more than 8,000 analysts followed on TipRanks. Moreover, 51% of his ratings have been profitable, resulting in average returns of 9.5%.

O’Reilly Automotive

O’Reilly Automotive (ORLY), a retailer of automotive parts, tools, supplies, equipment and accessories, delivered what Wells Fargo analyst Zachary Fadem called a “Q3 Gem.” An EBIT margin of more than 15.25% year over year was the company’s best in 2022.
Despite an uncertain outlook for the retail sector in the face of slowing demand and high inflation, Fadem remained upbeat about the company’s prospects, and even raised the price target to $850 from $800, while maintaining a buy rating on the stock.
Sales for O’Reilly’s do-it-yourself business were up by a low single-digit percent in the third quarter. The analyst observed that this growth suggests stable three-year DIY trends. (See O’Reilly Auto Stock Investors on TipRanks)
“While broader retail grows increasingly cloudy, ORLY delivered its best quarter of FY22, and considering best-in-class execution, offensive/defensive characteristics, and a fresh round of upward revisions, we like the setup into FY23,” observed the analyst.
Fadem is one of the top 100 analysts on TipRanks, ranked at No. 81. He has a success rate of 65%. Additionally, each of his ratings generated 18.2% on average over the past 12 months.

Cars.com

Automotive products and services provider Cars.com (CARS) pulls in more than 27 million unique users every month, making it a top marketplace for car purchases and dealerships. The company has also made a few strategic acquisitions like CreditIQ, and Accu-Trade, which have helped Cars.com expand into domains like auto financing and used car transactions.
The company recently delivered its quarterly results, which, Barrington Research analyst Gary Prestopino says, “highlights continued progress despite a challenging environment.” (See Cars Hedge Fund Trading Activity on TipRanks)
The analyst highlighted the momentum in the adoption of Cars.com’s Digital Solutions. Importantly, he pointed out that the adoption rate the company is witnessing now is a fraction of its total potential, “as adoption of all Digital Solutions by a dealer can easily double ARPD (average revenue per dealer).”
“Cars.com’s financial results and long-term outlook continue to improve, yet this improvement is not being reflected in the valuation of the stock,” said Prestopino, who has a buy rating and a $25 price target on CARS.
Ranked 68th in an over 8,000-strong database of analysts on TipRanks, Prestopino has delivered profitable ratings 57% of the time. Each of his ratings has returned 29.6% on average.

Veeco Instruments

Semiconductor process equipment manufacturer Veeco Instruments (VECO) is facing a slowdown in a few aspects of its business on account of soft mobile and computer equipment sales. Nonetheless, Benchmark analyst Mark Miller points out several areas of strength in the business that are hard to overlook.
Veeco’s laser annealing systems for logic applications are gaining traction among customers, as is clear from the increase in orders during the third quarter.
Miller expects a $5 million impact on the top line in the fourth quarter due to trade restrictions with China. Nonetheless, the company is confident it will be able to ship most of its Chinese backlog, as “most of Veeco’s tools are used in trailing edge applications.” (See Veeco Blogger Opinions & Sentiment on TipRanks)
Despite the near-term headwinds that await Veeco in the next one or two quarters, Miller believes that the recent decline in VECO’s share price has fully discounted the likelihood of lower earnings in 2023 compared to 2022.
The analyst reiterated a buy rating on the stock with a price target of $25. Miller ranks 254th among more than 8,000 analysts tracked on the platform. Over the past year, 51% of his ratings have been profitable, returning 15.1% on average.

Starbucks

Coffee giant Starbucks (SBUX) is riding on strong same-store sales in the U.S. with its “affordable luxury resonating with consumers,” according to BTIG analyst Peter Saleh. A return to normalcy has been the theme that has lifted the company’s revenues. The analyst believes that the momentum of customer traffic will continue to build now.
Saleh is also upbeat about Starbucks’ same-store sales in China, which are expected to surge remarkably after a Covid-led decline. “We believe this trajectory, coupled with the addition of a new store every nine hours, should unlock significant earnings power as the year progresses and into FY24,” said the analyst. (See Starbucks Stock Chart on TipRanks)
Saleh has an interesting suggestion for the company to help cover the investments made by Starbucks toward wage increases and other employee benefits. The analyst believes that a little more aggressiveness in menu pricing will not affect sales that much, and a mid-single-digit price hike could offset the aforementioned cost to the company.
Peter Saleh reiterated a buy rating on the stock with a price target of $110. The analyst ranks No. 445 among more than 8,000 analysts tracked on TipRanks. His ratings have been successful 62% of time and each of the ratings has delivered average returns of 11%.

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