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S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

How Millett Grew Steel Dynamics From A Three Employee Business

STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

Why Not Hire a Children’s Entertainer for Your Kid’s Party?

EntertainersThere are many children’s entertainers in Leeds and the surrounding areas, you just need to do a quick Google search for “Children’s Entertainers Leeds” and you’ll have more than enough to choose from. There are clowns, magicians, fairies and pirate themed event organisers that specialise in entertaining for kids parties.Just a couple of the best in the North West (and East):JingJangJooJong – The crazy couple who create a magical alien world to entertain with.Make a Wish Entertainment – Specialising in fairy-tales for childrenSo if you’re struggling to think of something to do, just hire an entertainer, most of them are members of Equity so they are quality performers. Make sure they have public liability insurance however so that any little injuries from the activities are fully covered and you have nothing to worry about. You may also wish to check for CRB clearance which many of them advertise having.EquipmentIs it a dance, a do, a ball, a shower? Whether a birthday party, surprise party, or a calm British tea party, there’s some equipment you should make sure you have!The things below aren’t always needed, but they usually are, and are always good to have in-case that 1 guest requests them:
Plastic cups (because if it goes outside, it’s best not to have glass)
Plastic cutlery (for the same reason as above, but also because you can throw them away and don’t have to wash them up!)
Paper towels (because someone will spill something… somewhere.)
Plasters (even plastic cutlery can cut!)
Bottles of water (for exhausted kids, and intoxicated adults!)
They are the basics, and obviously if you’re catering for a certain type of party you’ll need your niche products, kids parties normally always have balloons, don’t forget the helium, or even easier just buy pre-filled balloons, that way you don’t have to blow them up, it can take a lot out of you. For themed parties the entertainers sometimes provide costumers for the kids or something to help them feel more involved, however it will be worth checking with them before-hand and if not maybe rent outfits or just one token piece (pirate hat/eye-patch) to give to the kids it really enhances the atmosphere. You can usually haggle with outfit stores as they don’t really have set prices, so go in hard and say that you’ve got a party for 20 kids and need 20 outfits can you have them for £10 each! You may just get lucky.Things to look out for!Equity, Public Liability, CRB CheckThere are some things that set some entertainers apart from the others. They don’t necessarily mean they’ll be better, but they do mean that the person has taken the extra steps of professionalism in entertainment, insurance, and safety.Logos to look for on websites:1. Equity membership logo: Being a member of Equity, the professional performers and creative practitioner’s institute, usually guarantees that the entertainer has been classically trained, or at least displayed a high level of performance ability and professionalism. Again this doesn’t absolutely mean that they’ll be better than someone whom isn’t a member, however it’s always a nice reassurance, as there’s nothing worse than having an entertainer turn up who’s not… entertaining, especially when there’s a tough crowd, amateurism really shines through and can make the situation very awkward.2. Public liability insurance: This is probably the most important if you have more than a few children being entertained. There are so many little things that could go wrong, from a tip over a speaker cable, swallowing a popped balloon, damaging the entertainers or the clients equipment. But if someone has liability insurance at least you know that any injuries to your loved ones are fully covered, and it stops the “who’s fault was it” debate and saves people a lot of money.3. CRB Checked: This is the least important of the three, but it does show that they have gone another extra step to prove that they’re suitable to work with children and in sensitive situations. It doesn’t really reflect the entertainment value, and there’s generally no risk to children at parties when the adults are still there supervising, however it is another nice reassurance if they do have it.

“Would You Repeat That?” – 5 Communication Challenges For Credit Card Agents

Most credit cardholders know that the credit card industry made a decision to outsource call-in service centers to overseas locations where English is the second or third language. That decision was made to save operational costs on labor. Yet, what is the ongoing impact on North American credit cardholders?This article discusses the five most common communication problems that negatively impact North American credit card customers today as a result of the outsourcing of customer service centers.While these problems could have been predicted had credit card industry decision makers studied the literature on the complexities of language proficiency and culture, they didn’t. Now the industry is grappling with makeshift solutions to extreme customer dissatisfaction.The Customer’s Need – Quick Financial SolutionsIn each of the five examples below, a credit cardholder has called his credit card company, or is responding to a new credit offer, in hopes of finding a financial solution to a financial problem. He may need a new credit card so he can pay medical bills. He may need to get his car fixed so he can get to work. He may need a balance transfer in order to reduce his interest rate and avoid bankruptcy. Yet, whatever his need, it is likely that any problem or delay in getting that financial solution in place will cost him time, frustration and money.Yet, as ubiquitous as credit card transactions have become, their success in providing quick financial solutions for credit cardholders depends upon precise written and oral communication. This includes the accurate keying in of all relevant information and the conveying of accurate interest rates, financial terms and repayment obligations, all of which become part of a legally-binding contract between the credit card customer and the company with which he does business.The Agent’s Job – More Complex Than RealizedThe job of credit card agent is, sometimes, mocked because of the low pay it commands. However, to do the job well requires that an agent be an expert oral communicator with superior reading skills who can answer a customer’s questions while quickly sorting through what is, sometimes, confusing, duplicated or poorly organized on-line information.These complex language skills, however, have been misunderstood, underestimated and undervalued, as illustrated by five common problems that occur when an agent does not have them.The Five Most Common Problems1. Overlooking Account RestrictionsAn agent overlooks a “restriction” on a credit card account and the transaction fails.A restriction is something that prevents or limits the use of a credit card. The most common restriction results from the fact that a credit card has not yet been “activated.” The procedure for activating the card usually requires that the customer call a specific 800 number that is listed on the new card and confirm, through an automated system, that he has received the card.A customer can also place a restriction on a card, such as a dollar amount limit for individual transactions. Yet, sometimes, a customer will opt to put a restriction on his account and then forget that he has done so.It is up to the agent to scan the account for restrictions and make sure there is nothing to prevent the transaction from going through. Yet, noticing the presence of those restrictions requires fast, careful and accurate reading.Overseas agents, more than North American agents, tend to overlook restrictions, such as when a new account has not yet been activated.2. Spelling ErrorsAn agent makes a spelling error in the documentation for the “receiving” account in a balance transfer transaction and it fails to go through.Should the company name or address of the receiving account be misspelled, the transaction will fail. Misspellings most often occur because overseas agents are not familiar with American geography or place names. Common mistakes: “J C Penney” is spelled “J C Penny” or MA is used as the abbreviation for the state of Maine instead of ME.3. Sending Money To An Account That Cannot Receive ItAn inexperienced agent does not know a transaction is not possible.Some bank checking accounts allow direct deposits from credit card companies, others do not. An inexperienced overseas agent, unfamiliar with U.S. banks, often will not have access to this information. He will, subsequently, attempt to send money to a bank account that cannot accept it.4. Misreading An OfferA balance transfer offer is read incorrectly and a customer is either trapped in a high rate or assessed an unexpected feeBased upon his reading of on-screen offer #5, the agent believes that a customer will pay 0% interest on his balance transfer for 12 months if he opts for offer #5, and he tells the customer so. A more accurate reading of the documentation reveals that offer #5 has a provision which will require that customer to pay 18% interest on his balance transfer.While there was a balance transfer offer with an introductory interest rate of 0%, because the information can be poorly laid out, confusing and even duplicated, the agent misreads or misses the fine print and selects the offer with an 18% APR by mistake.Or, the agent chooses the offer that requires an upfront fee for a balance transfer.Or a 3% fee is part of an offer that the customer, inadvertently, chooses because the agent either a) did not read that part, b) read it but did not understand that the customer would be billed a fee, and/or c) did not convey to the customer that the fee was part of the offer.5. Selection Of Wrong On-Screen OfferAn agent selects the wrong on-screen offer by mistake.After reading the terms for a couple of credit card offers to the customer, the agent means to go back and choose the offer that the customer indicated he wanted. However, since the onscreen offers look alike and there can be duplicate offers on-screen, the agent inadvertently chooses the wrong one.A Customer’s NightmareThose within the credit card industry who find themselves trying to help a distressed customer after one of these “deals” has been transacted, and the money moved from lender B to lender A, describe the process as “a nightmare” for the customer, and very difficult for any agent trying to assist him.In most cases there is no remedy for the customer, who can be on the hook to pay money he doesn’t have, yet the customer often spends hours on the phone waiting to speak with agents, explaining his problem, and being transferred from one department to another, day after day, until he gives up.At that point, should the customer be able to pay off or transfer his balances to a different credit card lender and extract himself from the one with which he is now furious, he will take his business elsewhere and never come back.Credit card companies, therefore, are learning a hard lesson in how language works and how important effective communication can be. For the credit cardholder who has been burned, they cannot learn it too fast.What Effective Verbal Communication RequiresEffective communication requires significant give and take between conversing parties. Agents must pick up subtle language cues when they are listening to customers, as customers are not always explicit.For the agent attempting to work in a “second language”, it may take years before he can communicate well enough to be able to recognize those cues. Since language and culture are inextricably bound, some cues may be very difficult to learn without a direct experience of North American culture. However, the subtleties that the agent misses can be vital details in completing financial transactions correctly.It should, therefore, be no surprise that credit card companies receive millions of complaints each year from customers who say they were not able to understand the overseas agents they spoke with and/or that those agents seemed unable to understand them.Companies Experimenting With SolutionsAs a result, those credit card companies that make the most extensive use of offshore outsourced customer service (and some very large credit card companies only use outsourced customer service) are acutely aware of the problem and are currently experimenting with what they hope will be solutions.These experiments include funneling calls into a type of “clearing house,” sorting them according to technical difficulty, and then transferring each customer to a call center that, from past experience, can provide the necessary assistance.However, these experiments will not involve abandoning the outsourced customer service model any time soon. The tens of millions of dollars that credit card companies save by buying offshore service at $4.00 an hour will not be abandoned lightly.Instead, look for more strategies that involve directing balance transfer inquiries away from agents who, potentially, may experience communication difficulties and shifting those inquires toward centers with balance transfer specialists who have “proven ability” in these transactions. These balance transfer specialist centers will, most likely, be in North America.SummaryCustomers are experiencing inconvenience and financial loss due to the overseas outsourcing of credit card service centers. Miscommunication with overseas credit card agents whose first language is not English is a significant problem and negatively impacts financial transactions.The credit card industry is aware of the situation and is searching for solutions that will decrease incidents of miscommunication and increase customer satisfaction. The attempts by different credit card companies to solve this problem are likely to be varied and may have uncertain results.If you are looking to transact a balance transfer, whether on a brand new credit card account or on an existing account, you must be aware of this problem and I suggest you follow the strategies outlined in my article Credit Card Balance Transfers – How To Avoid Disaster.Also, be aware that an ounce of kindness or humility will often be repaid many times over by an agent who will then go out of his way to be helpful. So remain polite and respectful when calling in for assistance. When a tense conversation can be toned down with humor, do so as long as the agent understands you are not making fun of him.My final recommendation is one I’ve made in other articles, however, it deserves repeating.Should you be concerned that you are not being properly understood by the overseas agent who is facilitating your legally-binding balance transfer or other credit card transaction, you can ask to be transferred to a North American agent.However, do not request to be transferred to an agent in the United States because that will exclude Canadian call centers. Yet, in this industry as a whole, the best customer service comes from Canada. Canadian agents have a strong and established reputation for knowledgeable, effective service in the credit card business, so if you can land one to work on your balance transfer, consider yourself lucky.

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