CryptoCurrency
Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now
Don’t let the rallying market stop you from finding market bargains. There are still plenty of seemingly cheap stocks out there. I want to talk about a couple of them, and it doesn’t take a lot to get started in either position with both stocks currently trading in the $20s.
Sirius XM Holdings (NASDAQ: SIRI) and Carnival Corp. (NYSE: CCL) (NYSE: CUK) are absurdly cheap right now. Even a $500 investment can go a long way right now if investors wake up to the value in the shares. Let’s take a closer look.
1. Sirius XM
Warren Buffett warmed up to one of this year’s biggest losers last week, adding to his already substantial stake in Sirius XM. Berkshire Hathaway now owns nearly a third of its shares outstanding.
The only game in town when it comes to satellite radio in this country, Sirius XM has fallen on hard times. Its subscriber base may have peaked last year, after back-to-back quarters of sequential declines. Organic revenue growth has meandered in the single digits for the past decade, but now it has turned negative.
There are some good reasons why new car buyers aren’t paying up for satellite radio. Most cars make it easy to stream audio apps they already access on their phones through their car speakers. Folks aren’t driving as much on this end of the pandemic. There are also some sound reasons for the stock itself being out of favor after executing a reverse stock split following the consolidation of its tracking shares. Sirius XM has felt the pinch, and so have its shareholders. Despite moving higher this month on the Buffett share purchase, Sirius XM stock has been cut in half this year.
Sirius XM isn’t half the company that it used to be. The reverse split is now fading in the rearview mirror. There’s also no longer shareholder confusion about tracking shares that traded at a deep discount to the common stock. Fundamentally speaking, Sirius XM is also in the driver’s seat. Companies are calling people back to the office. Gas prices are now near three-year lows. The Federal Reserve orchestrating a cut in interest rates should make it easier for new car owners to get behind the wheel in a ride with factory-installed satellite radio.
The stock is also now historically cheap. Sirius XM is trading for less than 10 times earnings. Its high dividend yield of 3.9% is going to look even better as interest rates keep heading lower. Analysts also see a return to top- and bottom-line growth next year. It’s time to shift into drive here with this surprisingly cheap media stock that’s generating a ton of free cash flow and earnings even during this challenging stretch.
2. Carnival
Unlike Sirius XM, Carnival is an industry that has cruised back into market fancy. The shares have soared 55% since bottoming out two months ago, up 166% since the start of last year. It doesn’t mean that the world’s largest cruise line operator isn’t cheap.
Carnival is stronger now than it ever was before the pandemic. Customer deposits for future sailings have never been stronger than they have ever been at this point in the year. Revenue and adjusted earnings per share rose 15% and 62%, respectively, in its latest quarter. Customer deposits hit another high for this time of the year, a good sign that the next few quarters will also be strong.
Carnival is trading for just 16 times what it expects to earn for the fiscal year that ends next month. It’s trading for less than 13 times analyst profit targets for fiscal 2025, and Wall Street pros have been caught on the short end for some time. Carnival has topped analyst estimates for more than two years, coming through with double-digit percentage beats in each of the last five reports.
Debt was a problem for the industry, having to finance the operating lull for more than a year after the pandemic suspended sailings. It’s using its newfound profitability to tackle those demons. Carnival has repaid $7.3 billion of its debt since the start of last year. If the economy is able to score a soft landing, the waters should be just as inviting for the cruise lines.
Should you invest $1,000 in Sirius XM right now?
Before you buy stock in Sirius XM, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sirius XM wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $839,122!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of October 14, 2024
Rick Munarriz has positions in Carnival Corp. and Sirius XM. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now was originally published by The Motley Fool
The habits of millionaires are a topic of interest when it comes to financial advice. After all, unless they received a large chunk of money as an inheritance or gift, most millionaires had to be smart with their money to get where they are.
Learning how millionaires accumulate wealth — and where they keep it — can provide valuable insights for anyone focused on growing their money. One common question is whether or not millionaires keep money in checking accounts.
Studies show that in recent years, millionaires are keeping a significant portion of their wealth in cash. According to CNBC’s , that portion was about 24% in 2023. While this doesn’t necessarily mean a quarter of a millionaire’s wealth is sitting in a checking account, it does indicate the importance of maintaining liquid assets. And a checking account can be a helpful tool for doing so — whether or not you’re a millionaire.
Anyone, regardless of net worth, can find value in a checking account. Checking accounts allow unlimited deposits and withdrawals, check writing, bill pay, and other features to help you manage your money day-to-day.
While millionaires may keep large portions of their wealth in other deposit accounts and investments, some may use a checking account to manage daily spending. Millionaires also recognize the importance of having liquid assets, like funds in checking and savings accounts. Accessible cash lets you cover unexpected expenses without needing to sell off investments, borrow money, or pay a penalty for tapping your retirement savings early.
The amount of money a millionaire keeps in their checking account is highly personal and depends on preference. However, because checking accounts rarely earn competitive — if any — interest, some millionaires intentionally limit their checking account balance. Some may choose to keep the bare minimum, such as a couple of months’ worth of essential expenses, in their checking accounts, keeping the rest of their wealth in more lucrative assets.
Regardless of preference, it would be surprising for a millionaire to keep more than $250,000 in a single checking account. That’s because the Federal Deposit Insurance Corp. (FDIC) only insures up to $250,000 in deposits per institution, per account holder.
While millionaires may use checking accounts for day-to-day financial transactions, they may also use some of the following accounts in addition to, or in place of, a checking account:
-
Savings accounts: Like checking accounts, savings accounts provide a high degree of liquidity, allowing you to access your money as needed for regular or unexpected expenses. High-yield savings accounts, in particular, give millionaires an extra bang for their buck. Some of the best accounts currently offer rates upwards of 4% versus the national average savings account rate of 0.46%.
-
Cash management accounts: Cash management accounts (CMAs) pay competitive interest rates while maintaining more accessibility than a savings account. Some CMAs come with a debit card and ATM access, and many provide extended FDIC coverage limits by “sweeping” additional deposits into partner banks. CMAs are available at brokerages, not banks, facilitating easy transfers between investment and cash accounts.
-
Money market accounts: Similar to CMAs, money market accounts combine features of checking and savings accounts, often paying competitive interest rates and providing check writing and ATM access. Banks and credit unions offer these accounts, which are federally insured. Minimum opening deposit and minimum balance requirements are often higher than those for standard savings accounts.
-
Retirement and tax-advantaged accounts: Millionaires understand the importance of investing for their later years, and retirement accounts such as 401(k)s and IRAs allow them to do so in a tax-advantaged way. Some retirement accounts, like 401(k)s, are offered by certain employers. Others, such as traditional and Roth IRAs, are available to anyone.
-
Brokerage accounts: The IRS limits contributions to tax-advantaged accounts, and millionaires typically invest beyond these limits. They do so with taxable brokerage accounts, which can hold investments such as stocks, bonds, and mutual funds without contribution limits.
-
Other investments, like real estate, commodities, and art: Some millionaires may decide to diversify their portfolio with other investment types. These could include real estate investments, such as investment properties or real estate investment trusts (REITs); commodities, such as metals or energy products; art; and more.
The amount of money millionaires keep in their checking accounts depends on personal preference. While some millionaires may keep six figures in their checking account to maintain a comfortable cash cushion, others may choose to keep the bare minimum in checking. You wouldn’t expect millionaires to keep more than $250,000 in a checking account, however, because balances over this threshold aren’t typically insured.
There’s no single bank that’s a favorite among millionaires; it’s another matter of preference. However, millionaires are likely to bank with institutions that offer private banking to those who meet specific financial requirements. Private banking may include wealth planning services, waived fees, dedicated bankers, and additional perks. J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank are among some of the most popular banks for millionaires.
Billionaires may have checking accounts, but they likely use accounts that cater to ultra-high-net-worth individuals. These accounts may come with perks such as a dedicated banker, waived fees, and competitive interest rates. Alternatively, billionaires may opt for a cash management account with higher FDIC insurance coverage limits and checking account features.
No rule says you can’t have a million dollars in a checking account, but FDIC insurance typically only covers up to $250,000. Plus, you can get a bigger return on your investment by keeping $1 million elsewhere. One alternative is a cash management account, which acts like a checking account but generally earns higher interest. Plus, many cash management accounts insure more than the standard $250,000 by sweeping funds into multiple partner banks.
Lumen Technologies, Inc. (NYSE:LUMN) shares are trading higher on Monday after the company announced it is partnering with Meta Platforms, Inc. (NASDAQ:META) to significantly increase Meta’s network capacity and help drive its AI ambitions.
Lumen’s partnership offers Meta enhanced flexibility with secure, on-demand bandwidth, supporting its complex computing requirements and enabling it to serve billions daily.
Ashley Haynes-Gaspar, Lumen’s EVP and chief revenue officer, said, “We’ve transformed our company to meet this demand. As Meta’s customers use more AI services across its platforms, we’re helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs.”
Lumen Technologies said its Private Connectivity Fabric enables long-term network capacity for Meta’s AI.
Alex-Handrah Aimé, director of Meta’s Network Investments stated, “Our AI tools are performing increasingly more complex tasks including enabling conversations in a variety of languages and translating text to images in real time, while helping people interact with the world around them in new, immersive ways.”
Lumen will report third quarter 2024 results on November 5, 2024.
Investors can gain exposure to the stock via Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU) and First Trust Cloud Computing ETF (NASDAQ:SKYY).
Price Action: LUMN shares are up 9.50% at $7.38 at the last check Monday.
Image via Shutterstock
Read Next:
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CoinShares said the United States and Bitcoin led crypto investment product dynamics last week amid growing optimism over a potential Republican election win in the US.
Bitcoin’s private keys won’t be breached any time soon, but the industry still needs to transition to “post-quantum cryptography.”
Despite record European inflows, Bitcoin has been unable to recover above the $70,000 psychological level since July.
Apechain mainnet launch and LayerZero’s integration translated to 100% price upside for APE in recent days.
-
Science & Environment1 month agoHyperelastic gel is one of the stretchiest materials known to science
-
Technology4 weeks agoIs sharing your smartphone PIN part of a healthy relationship?
-
Science & Environment1 month ago‘Running of the bulls’ festival crowds move like charged particles
-
Science & Environment1 month agoMaxwell’s demon charges quantum batteries inside of a quantum computer
-
Science & Environment1 month agoHow to unsnarl a tangle of threads, according to physics
-
Science & Environment4 weeks agoX-rays reveal half-billion-year-old insect ancestor
-
Technology1 month agoWould-be reality TV contestants ‘not looking real’
-
Science & Environment1 month agoSunlight-trapping device can generate temperatures over 1000°C
-
Science & Environment1 month agoLiquid crystals could improve quantum communication devices
-
Science & Environment1 month agoQuantum ‘supersolid’ matter stirred using magnets
-
Technology3 weeks agoUkraine is using AI to manage the removal of Russian landmines
-
Womens Workouts4 weeks ago3 Day Full Body Women’s Dumbbell Only Workout
-
TV3 weeks agoসারাদেশে দিনব্যাপী বৃষ্টির পূর্বাভাস; সমুদ্রবন্দরে ৩ নম্বর সংকেত | Weather Today | Jamuna TV
-
Science & Environment1 month agoLaser helps turn an electron into a coil of mass and charge
-
Science & Environment1 month agoWhy this is a golden age for life to thrive across the universe
-
Science & Environment1 month agoA new kind of experiment at the Large Hadron Collider could unravel quantum reality
-
Science & Environment1 month agoQuantum forces used to automatically assemble tiny device
-
News3 weeks agoMassive blasts in Beirut after renewed Israeli air strikes
-
News3 weeks ago▶ Hamas Spent $1B on Tunnels Instead of Investing in a Future for Gaza’s People
-
News3 weeks agoNavigating the News Void: Opportunities for Revitalization
-
Football3 weeks agoRangers & Celtic ready for first SWPL derby showdown
-
Science & Environment1 month agoA slight curve helps rocks make the biggest splash
-
Science & Environment1 month agoNerve fibres in the brain could generate quantum entanglement
-
Science & Environment1 month agoHow to wrap your mind around the real multiverse
-
Business3 weeks agoWhen to tip and when not to tip
-
Technology3 weeks agoMicrophone made of atom-thick graphene could be used in smartphones
-
MMA3 weeks agoJulianna Peña trashes Raquel Pennington’s behavior as champ
-
Business3 weeks ago
DoJ accuses Donald Trump of ‘private criminal effort’ to overturn 2020 election
-
Technology3 weeks agoSamsung Passkeys will work with Samsung’s smart home devices
-
MMA2 weeks ago‘Uncrowned queen’ Kayla Harrison tastes blood, wants UFC title run
-
Science & Environment1 month agoITER: Is the world’s biggest fusion experiment dead after new delay to 2035?
-
Science & Environment1 month agoNuclear fusion experiment overcomes two key operating hurdles
-
News1 month ago▶️ Hamas in the West Bank: Rising Support and Deadly Attacks You Might Not Know About
-
Science & Environment1 month agoPhysicists have worked out how to melt any material
-
News1 month ago▶️ Media Bias: How They Spin Attack on Hezbollah and Ignore the Reality
-
MMA3 weeks agoPereira vs. Rountree prediction: Champ chases legend status
-
Sport3 weeks agoWales fall to second loss of WXV against Italy
-
Science & Environment1 month agoTime travel sci-fi novel is a rip-roaringly good thought experiment
-
Technology4 weeks agoWhy Machines Learn: A clever primer makes sense of what makes AI possible
-
News1 month ago
the pick of new debut fiction
-
Technology1 month agoMeta has a major opportunity to win the AI hardware race
-
News1 month agoOur millionaire neighbour blocks us from using public footpath & screams at us in street.. it’s like living in a WARZONE – WordupNews
-
Technology3 weeks agoThis AI video generator can melt, crush, blow up, or turn anything into cake
-
Sport3 weeks agoBoxing: World champion Nick Ball set for Liverpool homecoming against Ronny Rios
-
MMA3 weeks agoDana White’s Contender Series 74 recap, analysis, winner grades
-
Technology3 weeks agoMusk faces SEC questions over X takeover
-
News3 weeks agoFamily plans to honor hurricane victim using logs from fallen tree that killed him
-
Sport3 weeks agoMan City ask for Premier League season to be DELAYED as Pep Guardiola escalates fixture pile-up row
-
Sport3 weeks agoWorld’s sexiest referee Claudia Romani shows off incredible figure in animal print bikini on South Beach
-
News3 weeks ago‘Blacks for Trump’ and Pennsylvania progressives play for undecided voters
-
Technology3 weeks agoThe best budget robot vacuums for 2024
-
MMA3 weeks agoPereira vs. Rountree preview show live stream
-
News3 weeks agoGerman Car Company Declares Bankruptcy – 200 Employees Lose Their Jobs
-
Sport3 weeks agoCoco Gauff stages superb comeback to reach China Open final
-
Business3 weeks ago
Bank of England warns of ‘future stress’ from hedge fund bets against US Treasuries
-
Business3 weeks agoChancellor Rachel Reeves says she needs to raise £20bn. How might she do it?
-
Business3 weeks ago
Sterling slides after Bailey says BoE could be ‘a bit more aggressive’ on rates
-
Technology3 weeks agoMicrosoft just dropped Drasi, and it could change how we handle big data
-
Technology3 weeks agoTexas is suing TikTok for allegedly violating its new child privacy law
-
Sport3 weeks agoSturm Graz: How Austrians ended Red Bull’s title dominance
-
Money3 weeks agoWetherspoons issues update on closures – see the full list of five still at risk and 26 gone for good
-
MMA3 weeks agoUFC 307 preview show: Will Alex Pereira’s wild ride continue, or does Khalil Rountree shock the world?
-
News3 weeks agoHeavy strikes shake Beirut as Israel expands Lebanon campaign
-
TV3 weeks agoLove Island star sparks feud rumours as one Islander is missing from glam girls’ night
-
MMA3 weeks agoAlex Pereira faces ‘trap game’ vs. Khalil Rountree
-
Technology3 weeks agoJ.B. Hunt and UP.Labs launch venture lab to build logistics startups
-
TV3 weeks agoPhillip Schofield accidentally sets his camp on FIRE after using emergency radio to Channel 5 crew
-
News3 weeks agoHeartbreaking end to search as body of influencer, 27, found after yacht party shipwreck on ‘Devil’s Throat’ coastline
-
Sport3 weeks agoChina Open: Carlos Alcaraz recovers to beat Jannik Sinner in dramatic final
-
Business3 weeks ago
Head of UK Competition Appeal Tribunal to step down after rebuke for serious misconduct
-
Technology3 weeks agoThe best shows on Max (formerly HBO Max) right now
-
Entertainment3 weeks agoNew documentary explores actor Christopher Reeve’s life and legacy
-
Science & Environment1 month agoPhysicists are grappling with their own reproducibility crisis
-
Football3 weeks agoSimo Valakari: New St Johnstone boss says Scotland special in his heart
-
News3 weeks agoWoman who died of cancer ‘was misdiagnosed on phone call with GP’
-
News3 weeks agoHull KR 10-8 Warrington Wolves – Robins reach first Super League Grand Final
-
Business3 weeks ago
The search for Japan’s ‘lost’ art
-
Technology3 weeks agoHow to disable Google Assistant on your Pixel Watch 3
-
Business3 weeks agoStark difference in UK and Ireland’s budgets
-
Sport3 weeks agoAaron Ramsdale: Southampton goalkeeper left Arsenal for more game time
-
MMA3 weeks agoKetlen Vieira vs. Kayla Harrison pick, start time, odds: UFC 307
-
Technology3 weeks agoEpic Games CEO Tim Sweeney renews blast at ‘gatekeeper’ platform owners
-
Science & Environment3 weeks agoMarkets watch for dangers of further escalation
-
Technology3 weeks agoGmail gets redesigned summary cards with more data & features
-
Technology3 weeks agoApple iPhone 16 Plus vs Samsung Galaxy S24+
-
TV3 weeks agoMaayavi (මායාවී) | Episode 23 | 02nd October 2024 | Sirasa TV
-
Technology3 weeks agoPopular financial newsletter claims Roblox enables child sexual abuse
-
Technology3 weeks agoOpenAI secured more billions, but there’s still capital left for other startups
-
Health & fitness3 weeks agoNHS surgeon who couldn’t find his scalpel cut patient’s chest open with the penknife he used to slice up his lunch
-
News3 weeks agoBalancing India and China Is the Challenge for Sri Lanka’s Dissanayake
-
Entertainment3 weeks ago“Golden owl” treasure hunt launched decades ago may finally have been solved
-
Science & Environment1 month agoA tale of two mysteries: ghostly neutrinos and the proton decay puzzle
-
Business4 weeks ago
Eurosceptic Andrej Babiš eyes return to power in Czech Republic
-
Technology3 weeks agoUniversity examiners fail to spot ChatGPT answers in real-world test
-
Sport1 month agoJoshua vs Dubois: Chris Eubank Jr says ‘AJ’ could beat Tyson Fury and any other heavyweight in the world
-
News1 month ago
The Project Censored Newsletter – May 2024
-
Technology4 weeks agoArtificial flavours released by cooking aim to improve lab-grown meat
-
Business3 weeks ago
Top shale boss says US ‘unusually vulnerable’ to Middle East oil shock
-
News3 weeks agoLiverpool secure win over Bologna on a night that shows this format might work
-
Technology3 weeks agoAmazon’s Ring just doubled the price of its alarm monitoring service for grandfathered customers
You must be logged in to post a comment Login