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On Feb. 28, the Supreme Court will hear legal arguments on President Joe Biden’s plan to cancel hundreds of billions of dollars in student debt.
Here are the key issues the court is likely to consider, according to experts.

Protesters calling for student debt relief demonstrate outside the Republican National Committee’s Washington, D.C. offices on Nov. 18, 2022.
Paul Morigi | Getty Images Entertainment | Getty Images

With President Joe Biden’s sweeping student loan forgiveness plan on hold, tens of millions of Americans who borrowed for their college education remain in the dark about the future of their debt.
It’s hard to overstate the consequences of that uncertainty: Student debt makes it harder for people to buy houses, start families and businesses, and save for their old age.

Now, the nine justices of the Supreme Court have agreed to weigh in on the policy. The nation’s highest court will hear legal arguments around the president’s plan, which faces at least six lawsuits, on Feb. 28.
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“The benefit of the Supreme Court ruling is that it will settle, for now, all of the litigation related to the loan forgiveness,” Dan Urman, a law professor at Northeastern University, said in an earlier interview with CNBC.
Here are the three key questions the court is likely to consider, according to experts.

1. Do plaintiffs have legal standing?

The main obstacle for those hoping to challenge student loan forgiveness has been finding a plaintiff who can prove they have been harmed by the policy.

To establish so-called legal standing, the suing parties generally have to prove they’d be injured by the policy in question, said Laurence Tribe, a Harvard law professor.
The Supreme Court has already made clear that it will consider the issue of standing at the end of February, pointing in a brief to standing as a question presented.

In one of the lawsuits the highest court will consider, six GOP-led states argue that forgiveness will hurt the profits of companies in their states that service federal student loans. The other legal challenge contains two plaintiffs who say they’ve been harmed by the policy by the fact that they are partially or fully excluded from the relief.
Higher education expert Mark Kantrowitz doesn’t believe any of the plaintiffs have successfully proven injury by student loan forgiveness. However, he added, that doesn’t mean they’ll fail.
“The U.S. Supreme Court can decide to consider the case on the merits regardless of legal standing,” Kantrowitz said. “That would be a break from standard practice, but this court has demonstrated a willingness to break with precedent.”

2. Does the president have power to cancel student debt?

At an estimated cost of around $400 billion, Biden’s plan to forgive student debt is one of the most expensive executive actions in history. The justices are likely to examine whether the president has the power to implement such a sweeping policy.
The Biden administration insists that it’s acting within the law, pointing out that the Heroes Act of 2003 grants the U.S. secretary of education the authority to make changes related to student loans during national emergencies. The country has been operating under an emergency declaration due to Covid since March 2020.

The U.S. Supreme Court can decide to consider the case on the merits regardless of legal standing.

Mark Kantrowitz
higher education expert

3. Did Congress permit such an action?

Tribe expects that the justices will visit the so-called major questions doctrine in deciding the fate of Biden’s student loan forgiveness plan. Under this doctrine, the Supreme Court looks to see if a government agency acting on an issue with significant national consequences has been clearly supported by congressional law.
And so the justices may examine whether the Heroes Act, which the Biden administration is citing as its legal permission to pass forgiveness, actually allows the president to cancel student debt in the specific way he is hoping to.

The use of the doctrine has become more prominent in recent years, which Tribe finds concerning.
“They’re requiring a level of specificity that’s incompatible with the way the legal process works,” Tribe said. “It reaffirms the notion that the Supreme Court is prepared to expand its own power at the expense of everyone else: the executive branch, the legislative branch, administrative agencies and individual citizens.”

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Traders work on the floor of the New York Stock Exchange (NYSE), December 7, 2022.
Brendan McDermid | Reuters

Selecting a Top Ten list for 2023 feels a bit different this year.
With several historical measures virtually guaranteeing recession, the prospect for stock market gains is meager at best. If a recession occurs, the S&P 500 could decline just over 30% on average from the highs and earnings may contract an average of 20%. The term “average” is a bit misleading, too. The declines could be greater or less than the average and still be considered very normal. At one point, the S&P 500 was down 24% for the year, and it looks to close 2022 down by about 19%. This could mean that the lows have been made. Tony Dwyer from Canaccord Genuity doesn’t think so. He said the data demonstrates that no historical low has ever been made before a recession had begun. To wit, it appears lower market lows await in 2023.

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The Top Ten for 2023 consist of companies – in my opinion – with fortress balance sheets, downside protection and upside opportunities. Many on the list are well off their highs and some remain out of favor.
Farr, Miller & Washington is a “buy-to-hold” investment manager, which means we make each investment with the intent to hold the position for a period of three to five years.
Nevertheless, in each of the past 15 Decembers I have selected and invested personally in 10 of the stocks we follow with the intention of holding for just one year. These are companies that I find especially attractive in light of their valuations or their potential to benefit from economic developments. I hold an equal dollar amount in each of the positions for the following year, and then I reinvest in the new list. The following is my Top Ten for 2023, listed in random order. This year’s selection represents a nice combination of growth and defensiveness.
Results have been good in some years and not as good in others. I will sell my 2022 names on Jan. 2 and buy the following names that afternoon. The reader should not assume that an investment in the securities identified was or will be profitable. These are not recommendations to buy or sell securities. There is risk of losing principal. Past performance is no indication of future results. If you are interested in any of these names, please call your financial advisor to discuss.
Here are the Top Ten for 2023, with prices as of the close on Dec. 23.

1. Amazon (AMZN)

Amazon is a top player in three areas where we see ample secular tailwinds: the cloud, digital advertising and e-commerce. Perhaps more importantly, each of these businesses has a wide economic moat. Regarding the cloud, AMZN’s Web Services business is the market leader in cloud infrastructure services. This business benefits from high customer switching costs as cloud services are typically one of the last expenses a business might cut during challenging times. Moreover, the scale of AMZN’s web services business provides many cost advantages as very few companies can compete with AMZN’s investment spend and first-mover advantage.
With regard to digital advertising, we believe AMZN should be a relative winner as its business is not as vulnerable to Apple’s App Tracking and Transparency changes as META, SNAP and other digital advertisers. In addition, AMZN has a vast amount of proprietary information and real-time data on its users that it can leverage when selling ads. AMZN’s e-commerce business, its most well-known, benefits from network effects wherein its vast catalogue of buyers and sellers attracts more buyers and sellers. More than half of the total goods sold on Amazon.com are through AMZN’s third-party marketplace, where the company collects a commission in exchange for fulfillment services. Additionally, subscription fees from Amazon Prime generate strong cash flows and the service is very sticky given the value it provides to consumers. After years residing in territory out of our price range, AMZN’s valuation has become reasonable: The current ratio of EV/EBITDA (NTM), at ~12x, compares to a historical average of over 20x. Finally, the company has an excellent balance sheet with a debt rating of AA (S&P) and negligible net debt (debt net of cash). 

2. Becton Dickinson (BDX)

Becton Dickinson is a global supplier of medical devices, hospital supplies, diagnostic equipment and medication management systems to hospitals and labs. Management estimates that 90% of patients who enter an acute care setting are touched by at least one BDX product. Becton has faced a variety of company-specific headwinds in recent years that were exacerbated by the pandemic. That said, the company played a key role during the pandemic as the world’s leading manufacturer of syringes and needles and as one of the largest Covid-19 testing providers. Importantly, management has been reinvesting the proceeds from the Covid-19 windfall back into the business. Furthermore, they have divested slower growing businesses and have made several tuck-in acquisitions over the past couple years.
We expect these initiatives to improve the overall growth and margin profile as management works to return to its long-term growth algorithm (mid-single digit organic growth; low-double digit EPS growth). BDX shares currently trade at 20.7x CY23 EPS – a significant premium to the S&P 500 but more in line with its MedTech peers. The dividend yield is 1.4%. 

3. Johnson & Johnson (JNJ)

Johnson & Johnson is one of the world’s largest and most diversified health-care companies with revenue divided between the Pharmaceutical, MedTech and Consumer segments. The company should continue to benefit from an aging global population and rising standards of living in the world’s emerging economies. JNJ’s Pharmaceutical segment appears well-positioned to maintain its above-market growth rate over the next few years, thanks to its diversified product portfolio and promising pipeline. In the MedTech business, we have witnessed a strong recovery following several years of market underperformance as the company has started to see benefits from ongoing pipeline investments. Recent product launches range from surgical robots, minimally invasive surgical tools and innovative contact lenses.
JNJ sports a rare AAA-rated balance sheet, produces ample free cash flow and generates consistent, above-average returns on equity. These attributes support the company’s reputation as being one of the most defensive equities available. Moreover, the stock trades at just 18x estimated CY2023 EPS, which is only a small premium to the S&P 500. This reasonable multiple, the 2.5% dividend yield and our expectation that JNJ should continue to grow faster and in a more stable fashion than the overall market over the next five years, underpin our positive view of the stock at current levels.   

4. Mondelez (MDLZ)

Mondelez International is a leading food and beverage manufacturer that was spun off from Kraft in 2012. The company has broad geographic reach with operations in Europe, North America, Latin America, Asia, the Middle East and Africa. Since taking the helm in 2017, CEO Dirk Van de Put has introduced a variety of strategic initiatives that have improved MDLZ’s competitive position, including: 1) investments in its brands to drive higher market share; 2) a decentralized organizational structure that allows for more efficient decision-making; and 3) investments in the supply chain, which proved to be a competitive advantage during the pandemic. Recently, the company has been able to offset inflationary pressures, thanks to its pricing power and productivity initiatives. Additionally, there is very little private-label competition in sweet snacks and chocolate (80% of total revenues), which means consumers were less likely to trade down as prices have risen.
A strong balance sheet and steady cash-flow generation allow the company to pursue tuck-in M&A as management looks to expand into higher-growth category adjacencies (e.g. cakes/pastries, premium snacks, better for you, etc.). The stock trades at 21.9x CY23E EPS – a discount to other multinational consumer packaged goods companies (e.g. PEP, KO, PG, CL). Over the long term, we would expect MDLZ to generate double-digit total returns, consisting of high-single digit EPS growth and the 2.3% dividend.

5. Microsoft (MSFT)

Microsoft is one of the largest technology companies in the world. It has successfully pivoted from a Windows PC-first world to the cloud. The company has become a strategic partner in enterprise digital transformations through its cloud, app and infrastructure, as well as its artificial intelligence offerings. There is a long runway remaining for cloud growth as companies slowly deal with legacy investments that still drive value but are not cloud-based. MSFT is uniquely positioned to grow its wallet share of corporate IT budgets in this hybrid world. It is also encountering new opportunities in security, compliance and workflow, and the transition to subscription-based sales is no longer a headwind to free cash flow growth. Shares trade at 23x the CY23 EPS estimate. We think the premium valuation is justified given the above-trend growth, exposure to secular trends and strong balance sheet. Moreover, compared to software peers, the valuation is quite reasonable. The dividend yield is 1.1%.

6. Alphabet (GOOGL)

Alphabet is a holding company that owns several subsidiaries with the most visible and profitable being Google, the internet services giant. Google search is the world’s most popular search engine, and Android is the most widely used mobile phone operating software. Moreover, the company has nine products with more than a billion users: Search, Android, Chrome, Gmail, Drive, Maps, Play Store, YouTube and Photos. Search, display and video advertising account for most of the company’s revenue, with smaller, but faster growing Cloud (enterprise services) and Play Store, subscriptions and hardware accounting for the rest. We saw some softness in ad spend on concerns over economic weakness and platform privacy changes, but with advertising dollars continuing to shift to digital formats, the valuation looks compelling. Cloud migration remains a secular growth story and should allow the Google Cloud Platform to sustain its rapid growth in the coming years. The company has arguably the best balance sheet in the world with more than $100 billion in cash and investments net of debt.  Shares trade at 16.9x CY 23 EPS. There are risks around government regulation, but we see that taking several years to play out.

7. Truist Financial (TFC)

Truist is the company that was formed by the recent merger of regional banks BB&T and SunTrust. The merger created the sixth-largest bank holding company in the U.S. (by assets and deposits) while also forming a banking powerhouse in the high-growth Southeastern states. We were supporters of the merger as it will yield a large amount of expense synergies and provide the resources to accelerate investments in transformative technologies. The merger should also lead to significant revenue synergies and enhanced diversification as each legacy bank cross-sells its respective products and services. We are further comforted that the integration was managed well as BB&T integrated numerous acquisitions in a disciplined and conservative manner over the past decade. Now that the integration is largely complete, we expect Truist to be able to generate industry-leading expense efficiency and returns on equity, allowing for a higher valuation multiple on a price-to-book (P/B) basis. 
Finally, the earnings accretion from the integration should act as an engine for earnings growth even if the operating backdrop remains difficult (subdued economic growth, rising credit costs). At less than 8x our current expectation for CY23 EPS and a generous 4.9% dividend yield, we believe the stock is attractively priced, especially given that earnings growth should handily outpace the peer group.

8. FedEx (FDX)

While FedEx benefited from a surge in e-commerce package volume following Covid’s arrival, the company has also endured a series of (mostly unforeseeable) headwinds over the past couple of few years. Unfortunately, these challenges coincided with heavy investment outlays at the company, to include a buildout of its ground network, the modernization of its airplane fleet, and the integration of TNT Express Now, given the ongoing normalization in e-commerce, new CEO Raj Subramaniam’s primary charge is to rationalize the company’s expense bases, raise margins and close the performance gap to competitor UPS. This may prove to be no small feat, and the selection of FDX for inclusion in a top ten list with an investment horizon of just one year is not without risk.  However, the opportunities for improvement are many, and we think that given the trough valuation in the stock, the harvesting of just some of the low-hanging fruit could get the stock going in the right direction again. We are further encouraged that the company maintains significant pricing power as it uses its network capacity to cherry-pick the most profitable delivery services. Finally, as industrial production, global trade and labor availability gradually begin to improve, the company should be able to post solid revenue growth, margin expansion and very strong earnings leverage.  In the meantime, we think the company’s discounted valuation (11.3x CY23E EPS) relative to both the S&P 500 and its major competitor, UPS, provides downside protection. The yield is 2.6%.     

9. CVS Health (CVS)

CVS Health provides health plans and services through its health insurance offerings, pharmacy benefit manager (PBM), and retail pharmacies. The vertically integrated model provides CVS with diversification across the health-care supply chain, thus making it a more defensive company. For the consumer, CVS seeks to improve health care outcomes by integrating medical, lab, and pharmacy data. Over time, this should lead to medical cost savings as the company uses this data to promote better medical management/adherence, improved engagement, and the utilization of lower-cost health-care settings such as CVS’s MinuteClinics and HealthHubs. CVS has enormous scale with about 85% of the U.S. population living within 10 miles of one of its stores. This bodes well in the evolving health-care landscape where trusted brands and a nationwide footprint are essential keys to success.
CVS’s businesses are stable and generate strong cash flow, which has enabled the company to reduce its leverage to the long-term target of 3x net debt-to-EBTIDA. With this newfound balance sheet flexibility, management is looking to expand its offerings into primary care and in-home health through a combination of internal investments and M&A. The stock currently trades at just 11x estimated CY23 EPS and offers investors a 2.4% dividend yield. Management remains committed to its goal of high single-digit EPS growth in 2023, followed by sustained double-digit growth in 2024 and beyond. We believe the risk/reward tradeoff is attractive for long-term focused investors.

10. Raytheon Technologies (RTX)

Raytheon Technologies was formed through the combination of Raytheon Company and the legacy United Technologies aerospace and defense (A&D) businesses. The merger created a powerhouse in the A&D industry, but management’s near-term sales and profit targets for the combined entities have been pushed out as a result of the Covid-19 crisis. The crisis took an enormous toll on the commercial aerospace industry as steep production cuts at Boeing and Airbus were combined with a massive drop in airline passenger miles. Fortunately, the defense side of the new company, which contributed 65% of total company pro forma sales in 2020, picked up the slack during the throes of Covid. The defense side should continue to provide downside protection and steady cash flow as result of geopolitical uncertainty, allowing the company to continue investing in R&D during economic downturns. As conditions continue to improve on the commercial side, the company should start to benefit from aircraft production increases as well as greater aircraft utilization. Furthermore, the growing installed base of the company’s groundbreaking geared-turbofan (GTF) engine, combined with a rebound in aircraft utilization, will contribute to a growing stream of high-margin and high-visibility aftermarket revenue.
Finally, we also expect the company will ultimately reap huge cost and revenue synergies from the ongoing integration of both Rockwell Collins and the Raytheon Company. The synergies will help the company return an expected $20 billion in capital to shareholders in the four years following the Raytheon merger. The stock offers strong value at just 19.5x CY23E EPS – a moderate premium to the market but a well-deserved one. The dividend yield is also attractive at 2.2%. 
— Michael K. Farr is a CNBC contributor and president and CEO of Farr, Miller & Washington.

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Prioritizing quality of life for employees is one of the biggest career trends of 2022.
Employers may go through a culture shift to meet workers desire for flexible work arrangements.
Despite large, high-profile layoffs, many companies still need to retain and hire new workers.

Chandra Sahu, 25, left a job in investment banking during the so-called Great Resignation last year, eager to find work that offered more flexibility. The New York City resident said she looked for work that fulfilled her “top priorities,” allowing her to demonstrate her “agency and creativity,” and landed at a startup.
“I wanted to work in a space where I was working closely with a team, where it still had kind of that rapid energy that you have in banking, but super-focused on a user and a problem space,” Sahu said. 

Being able to pursue her interests outside of work was also important to Sahu. “I’ve really tried to prioritize making space for habits in my life, and ultimately lead to the kind of life I want to live,” she said.

Employers may go through ‘culture shift’

Prioritizing quality of life for employees is one of the biggest career trends of 2022, said management consultant Christine Spadafor. “For many companies, this is going to be a culture shift,” she said. “It’s really looking at employees more holistically.” 
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“It means putting a human face on the human capital,” Spadafor added. “It’s not just thinking about the work that they do, but rather thinking about their financial well-being, their social well-being meaning with friends and family, their physical well-being and what’s gotten a lot of attention, and understandably so, is your mental health well-being, as well.”

Employees are seeking stability

Yet after the Great Resignation, many workers went through what has been called the “Great Regret” —admitting they should have stayed put, a workplace dilemma of 2022 that some experts say may change in the year ahead. 

“You’re seeing a little more hesitancy to make moves; people are … maybe digging in a little bit,” said William Crawford Stonehouse III, founder and president of Crawford Thomas Recruiting in Orlando, Florida. 
Despite a spate of layoffs at large, high-profile companies, many employers need to retain productive workers. “The unemployment rate is still so low that if you talk to 10 medium [size] business owners in America right now, they’ll all tell you there’s a position that they would absolutely hire someone on board if they could find the person,” said Stonehouse.

Workers continue to demand flexibility

Chandra Sahu’s job gives her the flexibility to work remotely. Without a commute she has more time to pursue other interests.

Sahu said she wasn’t worried about finding a new job when she left investment banking in 2021. She was ready for a change. The startup she joined was acquired by social media company Pinterest earlier this year. She landed a coveted product manager position there in less than six months and still finds time for yoga, reading and other interests every week. 
“It’s been amazing to take a step back and figure out how to orient my life around the choices I want to make, while still having the kind of rigor in my job that I think I really love,” she said.
Sahu’s job changes may reflect another trend some workplace management experts call a “career correction.” Instead of “quiet quitting” — or doing the bare minimum on the job — workers are intentionally switching from a culture that is quick to praise working long hours to one that puts more value on employees’ lives outside of work. 

The data is so strong that people want a bit more flexibility.

Tina Paterson
consultant and author

“Individuals certainly are trying to exercise their right to find employment anywhere that meets their needs: their family needs, their work needs, their location needs — all of that,” said Christie Smith, global lead of Accenture’s Talent & Organization Practice.

Buzzwords highlight workplace dilemmas

From “shift shock,” when a new job is very different than what you were led to believe, and “boomerang employees” who return to jobs they left, to “career cushioning” by adding new skills and reigniting your network after “loud layoffs” at high-profile companies, this year’s buzzwords for common workplace dilemmas may fade.
Yet, a new outlook for employers will endure. “The trend will continue to be an emphasis on talent,” Smith said. “The right skills, and getting those, top getting that talent into the right positions within organizations.”

Remote work is here to stay

Recognizing employees’ need for flexibility will be essential to filling roles.
“Fully in the office is a thing of the past, and the leaders who are hanging on to that model are going to lose the war for talent,” said Tina Paterson, a Melbourne, Australia-based consultant and author of “Effective Remote Teams.”

“Great employees always have options — and the data is so strong that people want a bit more flexibility, whether that’s hybrid or fully remote, in terms of where they work,” she added.
Sahu echoes the sentiments of many other younger workers, saying senior managers can show they understand and value their employees’ needs through their own actions.
“Making space for your kids or your hobbies, or your life that is protected, tells other folks that that is a regular habit that a successful leader can have,” she said.

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Shoppers line up outside a Costco to buy supplies after the Hawaii Department of Health on Wednesday advised residents they should stock up on a 14-day supply of food, water and other necessities for the potential risks of novel coronavirus in Honolulu, Hawaii, U.S. February 28, 2020.
Courtesy of Duane Tanouye via REUTERS

As we near the end of 2022, plenty of uncertainty looms ahead in 2023 – and the challenges faced by this world are far from over.
This year, investors have faced a sharp selloff in equities, spiking yields in bonds and dramatic swings in oil prices. Though market tumult is only a temporary event, there’s no saying how long it might last.

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A long-term focus allows investors to tune out the noise from daily volatility and focus on building a strong portfolio.
Here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Nova Measuring

Nova Measuring (NVMI), a metrology solutions provider for the semiconductor manufacturing industry, has benefited from lower exposure to the memory market, which has suffered major setbacks this year. About 70% of Nova’s products are for the foundry market, which has not been drastically affected by the slowdown in the semiconductor industry this year.
Benchmark analyst Mark Miller, who hosted a virtual meeting with Nova management recently, pointed out that the company has gained at a compound annual growth rate of 15% to 20% over the past five years, surpassing its growth in WFE (wafer fab equipment) spending. The analyst is also upbeat about Nova’s prospects in this area. “While a softer 2023 is expected, Nova expects to once again outpace WFE spending,” said Miller.
Miller notes that the longer-term outlook for Nova is bright, given the demand runway that will be created when the U.S., Europe, and China ramp up internal chip manufacturing over the next five years. (See Nova Measuring Stock Investors sentiments on TipRanks)

Further, the second half of 2023 is expected to be stronger due to a possible rebound in the memory market and increased orders from its major customer, Taiwan Semiconductor Manufacturing (TSM).
The analyst reiterated a buy rating on the stock with a price target of $100.
Miller, who is ranked No. 276 out of more than 8,000 analysts on TipRanks, has delivered 51% profitable ratings in the past year. Moreover, each of his ratings has generated average returns of 14.2%.

Costco

Costco (COST) has a unique business that offers food and general merchandise in bulk at discounted prices through membership warehouses. Strategic investments, customer-centricity, and a focus on membership growth have helped the business survive a tumultuous year.
Recently, Tigress Financial Partners analyst Ivan Feinseth said that he sees consumer spending trends improving later in 2023, and this will be a catalyst for Costco’s top-line growth. Also, the retailer’s ongoing store growth and international expansion are expected to push business performance trends upward. (See Costco Dividend Date & History on TipRanks)
The analyst also believes that Costco’s dominance in the warehouse-based retail market is driving its competitive advantage. Feinseth cut his price target to $635 from $678 but reiterated his buy rating on the stock. The analyst views “the recent pullback as a major buying opportunity” and expects Costco’s loyal customer base and resilient business model to continue to drive growth.
Feinseth stands at the 271st position among more than 8,000 analysts. Remarkably, 58% of his ratings have been successful, with each rating delivering average returns of 10.7%.

Amazon

Technology expert analyst Brian White of Monness Crespi Hardt has always been bullish on Amazon (AMZN). The analyst has his eyes set on the long-term prospects of the company in the rapidly advancing digital transformation.
White is upbeat about the growth runway ahead of Amazon in the areas of e-commerce, Amazon Web Services, digital media, advertising, Alexa, robotics, AI and others. Despite a challenging macroeconomic environment in the near-term, the lingering pandemic is expected to push digital transformation further, “benefiting the company’s long-term business model.”
The analyst reiterated his buy rating on Amazon with a price target of $136. (See Amazon Hedge Fund Trading Activity on TipRanks)
White’s convictions on Amazon have been 46% successful. Moreover, 54% of his overall ratings have been profitable, with each rating generating average returns of 8.1%. The analyst has been ranked No. 716 among over 8,000 analysts tracked on TipRanks.

Meta

Coming to yet another one of White’s favorite stocks, Meta Platforms (META), the analyst remained bullish with a buy rating and a $150 price target. The company is wrapping up a difficult year full of challenges, which are expected to carry over into 2023.
However, in the long run, the analyst sees Meta gaining from the secular growth opportunities in digital ads and advancing in innovations in the metaverse. White expects the Facebook-parent’s valuation to move up significantly over time. (See Meta Platforms Website Traffic trends on TipRanks)
“With sales up 34% per annum over the past five years, EPS turning in a 32% CAGR and generating an attractive operating margin, we believe Meta Platforms should trade at a premium to the market and tech sector in the long run; however, the expect the current macroeconomic and geopolitical environment will weigh on advertising spending in the coming quarters,” said White. 

Ambarella

Recently, Stifel analyst Tore Svanberg reinforced his bullishness on chip company Ambarella (AMBA), which specializes in the development and marketing of video compression and image processing solutions. As a player in the battered semiconductor industry, AMBA’s stock has fallen sharply this year. Nonetheless, here’s a look into the positives that Svanberg pointed out.
The analyst views the company as a leader in the video processing technology market, which is growing rapidly and secularly. (See Ambarella Blogger Opinions & Sentiment on TipRanks)
Svanberg highlighted Ambarella’s flow of deal wins. The latest deal was with Bosch Mobility Systems, the largest global automotive Tier 1 original equipment manufacturer.
The analyst said that the company now has deals with two of the top three global Tier 1 automotive original equipment manufacturers. Svanberg also said that AMBA is “positioning ‘CV3’ well to realize AMBA’s ambitious automotive aspirations, w/ a 6-year design win funnel estimated at $2.3 billion.” For context, CV3 is Ambarella’s flagship domain controller SoC (System on a Chip).
“In sum, we believe AMBA is well-positioned to be a key, long-term beneficiary of CV/Edge Processing, especially coupled with the company’s highly strategic acquisition of Oculii (giving it a unique edge in vision/radar sensor fusion technology), and therefore maintain our Buy on AMBA shares,” said Svanberg, who also raised the price target to $100 from $88.
Svanberg is ranked 32nd among more than 8,000 analysts on TipRanks. Sixty-five percent of his ratings have been profitable and each has garnered an average return of 20.7%.

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Many Americans make the same credit card mistakes, which may be holding them back from improving their financial standing.
Here’s a look at three of the most common myths about credit cards and credit scores and how to correct them.
One of the costliest misconceptions is that carrying a small balance from month to month will give your credit score a boost.

Credit scores play a key role in your financial life. Generally speaking, the higher your credit score, the better off you are when it comes to getting a loan.
And yet, many Americans make the same common mistakes with credit, putting their future financial well-being at risk. As interest rates rise at the steepest annual pace ever, there is even more at stake in the year ahead.

Here are some of the most common myths about credit cards and credit scores and how to avoid them going forward.

Myth #1: You can’t qualify for credit with a low score

Nearly 70% of Americans mistakenly believe that having too low of a credit score will prevent them from qualifying for any type of credit card, according to a recent report by Capital One.
Choosing the right type of card can make a difference, according to Ted Rossman, senior industry analyst at Bankrate and CreditCards.com. For example, getting a secured credit card or “piggy-backing on a parent’s card as an authorized user” are good places to start, he said.
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Some secured cards require a cash deposit that then serves as the credit line, which can be a good fit for those without a proven payment history. Otherwise, consider a card that requires a co-signer, Rossman advised. In that case, the parent, or co-signer, is responsible if the account isn’t in good standing.

Myth #2: Paying utility bills can boost your score

Nearly as many — about 68% — incorrectly believe that paying your utility bills on time can improve your credit score, according to the Capital One survey, which polled more than 3,500 Americans in July 2022.
Most utility companies do not report payment histories to credit bureaus and, even if they did, not all credit scoring companies consider that type of bill payment information.
If you’re trying to raise your credit score, paying those bills on time only counts if you’ve enrolled in a program like Experian Boost, Rossman said, which will factor on-time payments for utilities, phones and cable TV into your credit history.

Myth #3: Carrying a small balance helps your score

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Another common credit card misconception is that carrying a balance month to month will give your credit score a boost.
According to Capital One, 37% of borrowers wrongfully believe that leaving a balance on their card is better for their credit score than paying off the balance in full each month. A separate NerdWallet study found that as many as 46% of Americans make this same mistake.  
That’s the most expensive misconception. In fact, any amount of revolving debt costs you in interest charges. Those typically are not calculated based on how much debt you roll over to the next statement period, but rather on your daily average balance.
If you’re not paying in full, make sure to at least pay the minimum due. Paying less than the minimum is “the same as not paying it at all,” according to Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.

“That’s what a delinquency is,” Raneri said, which could also ding your credit score in as soon as 15 to 30 days, she added.
Credit experts generally advise borrowers to keep revolving debt below 30% of their available credit to limit the effect that high balances can have on your credit score.
Still, nearly half of credit card holders carry credit card debt from month to month, according to a Bankrate report, just as the interest charges on those balances are getting more expensive. 
Credit card rates are now over 19%, on average — an all-time high — after rising at the steepest annual pace ever, in step with the Federal Reserve interest rate hikes to combat inflation.
With the Fed’s rate increases so far, those credit card users will wind up paying around $22.9 billion more in 2022 than they would have otherwise, according to a separate analysis by WalletHub.
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The IRS announced it won’t require platforms such as Paypal and Venmo to issue a tax when a user’s business transfers exceed $600.
The pre-2022 threshold of 200-plus transactions worth an aggregate above $20,000 remains in place for now.

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The IRS has delayed, for a year, when payment services such as Paypal and Venmo and e-commerce companies such as eBay, Etsy and Poshmark will have to issue tax forms to individuals whose business transactions through those platforms exceed $600.
The agency on Friday said that such third-party platforms won’t have to use that threshold for when they report 2022 tax-year transactions on a Form 1099-K, which goes to both the IRS and taxpayer. Instead, they can rely on pre-2022 threshold of more than 200 transactions worth an aggregate above $20,000.

The American Rescue Plan Act of 2021 dropped the threshold to just $600. And even a single transaction can trigger a form.
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“To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes,” Doug O’Donnell, acting IRS commissioner said in a statement.
“The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements.”
The agency said it will issue additional details on the delay, as well as guidance for taxpayers who may have already received a 1099-K as a result of the American Rescue Plan changes.

Even without the new reporting requirement in place, income from business transactions through such platforms is still taxable, which means sellers must report it. The delay only means business activity won’t generate a 2022 tax form at that low threshold.

Tax pros had ‘deep concerns’ about the $600 threshold

Tax professionals and consumers are likely to cheer the delay.
Tax pros had flagged the lower tax reporting threshold as a possible pain point for filers, with the risk of receiving 1099-Ks for personal transfers on platforms such as Venmo and PayPal, such as gifts or reimbursements.
“As tax preparers, we are more or less expecting the worst,” Albert Campo, a certified public accountant and president of AJC Accounting Services in Manalapan, New Jersey, told CNBC earlier this month.

“We’re expecting most of our clients to get these things,” he said. “So we’re trying to be proactive in addressing it.”
Last week, the American Institute of CPAs shared “deep concerns” about the $600 tax reporting threshold in a letter to the Senate Finance Committee and the House Ways and Means Committee.
The professional group said it supported a National Taxpayers Union Foundation recommendation to raise the threshold to “a level sufficient to exempt casual or low-level online activity.”
AICPA said even a $5,000 threshold would be “significant progress.”
—CNBC’s Kate Dore and Kelli Grant contributed reporting.

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Two bills to provide additional protections for pregnant workers and breastfeeding people were included in the $1.7 trillion federal government spending package passed by Congress this week.
The changes are a “monumental and historic step forward” that will make a huge difference for low-income workers, particularly women of color, one advocate says.

Advocates, legislators, and pregnant workers rally on Capitol Hill in support of The Pregnant Workers Fairness Act on Dec. 1 in Washington, D.C.
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Mothers and moms-to-be are poised to get new workplace protections, thanks to two amendments included in the $1.7 trillion federal government spending package that Congress on Friday sent to President Joe Biden for his signature.
That includes the Pregnant Workers Fairness Act, which will require employers to make temporary and reasonable accommodations for pregnant workers.

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“Pregnancy should never be a barrier for women who want to stay in the workplace,” Sen. Bob Casey, D-Pa., one of the leaders behind the proposal, said in a statement.
“This legislation would provide commonsense protections for pregnant workers, like extra bathroom breaks or a stool for workers who stand, so they can continue working while not putting extra strain on their pregnancies,” Casey said.
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Casey first introduced the proposal in 2012. The bipartisan bill was also led by Sen. Bill Cassidy, R-La.
The Senate amendment to add the bill to the spending package passed on Thursday with a 73-24 vote. The proposal was passed by the House of Representatives in May 2021. The House passed the larger package to fund the federal government on Friday.

“The Pregnant Workers Fairness Act is one of the biggest pieces of civil rights and workplace protection legislation to pass in over a decade,” said Sarah Brafman, national policy director at A Better Balance, a nonprofit advocacy organization focused on workers’ rights.
“It is a monumental and historic step forward for pregnant and post-partum workers,” she said.

New protections for working women ‘in the shadows’

Sen. Bob Casey, D-Pa., joins advocates, legislators, and pregnant workers at a rally on Capitol Hill in support of The Pregnant Workers Fairness Act on Dec. 1 in Washington, D.C.
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The change would provide protections for many women “in the shadows” who would share with advocates stories of what happened to them, Brafman said. That includes pregnant workers who asked for light duty who were then pushed out of their jobs, women who asked for schedule accommodations due to morning sickness who were refused their requests and female cashiers who asked for a chair to sit on who were told instead to come back after they gave birth and later found their positions had been filled.
The issue disproportionately affects low-income workers — particularly women of color — in low-wage, physically demanding jobs, Brafman said.
The Senate also on Thursday passed an amendment with a 92-5 vote to include the Providing Urgent Maternal Protections (PUMP) for Nursing Mothers Act in the government funding bill.
That proposal, which would protect a worker’s right to breastfeed in the workplace, also had bipartisan backing in the chamber through leaders including Sens. Jeff Merkley, D-Ore., and Lisa Murkowski, R-Alaska.

The bill expands on a 2010 law that requires employers to allow for time and space for mothers to pump and store breast milk at work.
“We must make it possible for every new mom returning to the workplace to have the option to continue breastfeeding,” Merkley said in a statement.
That 2010 law excluded protections for nearly 9 million women of child-bearing age, according to Brafman. That forced breastfeeding women to pump in their cars or stop pumping altogether because their employers did not give them time and space, she said.
Both bills had strong backing from the business community, which wanted clarity on the gaps in the law and to clear confusion for business owners, she noted.
“This is really an economic justice victory, a gender justice victory, a racial justice victory, because these issues often so disproportionately affect women of color and especially Black women,” Brafman said.
“These are really strides forward for Black maternal health, in particular,” she said.

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“Secure 2.0” is part of the omnibus appropriations bill approved by the Senate on Thursday and the House on Friday.
The bill now will go to President Joe Biden for him to sign into law.
The goal of Secure 2.0 is to build upon changes implemented by the 2019 Secure Act, such as expanding retirement-plan access to more workers.

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Three years after the Secure Act of 2019 ushered in the first major changes to the U.S. retirement system in more than a decade, more modifications are now on their way.
Dozens of retirement-related provisions collectively known as “Secure 2.0” are included in a $1.7 trillion omnibus appropriations bill that received approval from the House on Friday — following the Senate’s nod on Thursday — and will head to President Joe Biden for his signature.

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Secure 2.0 “addresses gaps that have left some people on the sidelines of retirement savings, unable to access the workplace retirement plans that do so much good in establishing the capability and habit of savings,” said Susan Neely, president and CEO of the American Council of Life Insurers.
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“Part-time workers, military spouses, small-business employees, and student loan borrowers are just a few who will benefit and have a better chance of positioning themselves for a more financially secure retirement as a result of Congress’s action today,” Neely said.
The Secure 2.0 provisions are intended to build on improvements to the retirement system that were implemented under the 2019 Secure Act. Those changes included giving part-time workers better access to retirement benefits and increasing the age when required minimum distributions, or RMDs, from certain retirement accounts must start — to age 72 from 70½.

This time around, some of the many provisions that are in the massive appropriations bill include:

Requiring automatic 401(k) enrollment: Employers would be required to automatically enroll employees in their 401(k) plan at a rate of least 3% but not more than 10%. Businesses with 10 or fewer workers and new companies in business for less than three years are among those that would be excluded from the mandate.

Increasing the age when RMDs would need to start: The current bill would increase it from age 72 to age 73 in 2023 and then to age 75 in 2033. Additionally, the penalty for failing to take RMDs would be reduced to 25%, and in some cases, 10%, from the current 50%.

Creating bigger “catch-up” contributions for older retirement savers: Under current law, you can put an extra $6,500 annually in your 401(k) once you reach age 50. Secure 2.0 would increase the limit to $10,000 (or 50% more than the regular catch-up amount) starting in 2025 for savers ages 60 to 63. Catch-up amounts also would be indexed for inflation. Additionally, all catch-up contributions will be subject to Roth treatment (i.e., not pretax) except for workers who earn $145,000 or less.

Broadening employer 401(k) match options: A proposal would make it easier for employers to make contributions to 401(k) plans on behalf of employees paying student loans instead of saving for retirement.

Improving worker access to emergency savings: One provision would let employees withdraw up to $1,000 from their retirement account for emergency expenses without having to pay the typical 10% tax penalty for early withdrawal if they are under age 59½. Companies also could let workers set up an emergency savings account through automatic payroll deductions, with a cap of $2,500.

Increasing part-time workers’ access to retirement accounts: The original Secure Act made it so part-time workers who book between 500 and 999 hours for three consecutive years could be eligible for their company’s 401(k). Secure 2.0 reduces that to two years. Companies already have been required to grant eligibility to employees who work at least 1,000 hours in a year.

Helping workers who are repaying student loans save for retirement: Secure 2.0 makes it easier for employers to make contributions to 401(k) plans (and similar workplace plans) on behalf of employees who are making student loan payments instead of contributing to their retirement plan.

Boosting how much can be put in a qualified longevity annuity contract: Currently, the maximum that can go into a QLAC is either $135,000 or 25% of the value of your retirement accounts, whichever is less. Secure 2.0 eliminates the 25% cap and increases the maximum amount allowed in a QLAC to $200,000.

Changing the required minimum distribution rules for Roth 401(k)s: Currently, while Roth IRAs come with no RMDs during the original account owner’s life, that’s not the case for Roth 401(k)s. Starting in 2024, the pre-death distribution requirement would be eliminated.

Broadening uses for unused college savings money: A provision would allow for tax- and penalty-free rollovers to Roth IRAs from 529 college savings accounts that are at least 15 years old, within limits.

Helping military spouses get access to retirement plans: Secure 2.0 creates tax credits for small businesses that let military spouses enroll right away in their plan and qualify for immediate vesting of any employer matches.

The bill also includes incentives for small businesses to set up retirement savings plans for their workers, encourages individuals to set aside long-term savings and makes it easier for annuities to be an income option for retirees.

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