There's no such thing as a perfect investment as everything you buy comes with puts and takes. For instance, if you are looking for a high yield right now, one of the best options is still Enterprise Products Partners (EPD -0.30%).
Hewlett Packard Enterprise Company is set for multiple growth streams into eFY25, driven by strong server sales, AI demand, and potential Intelligent Edge recovery. HPE's innovative tech, like liquid cooling for data centers and AI systems, has the ability to generate substantial growth in the coming quarters, driven by enterprise & sovereign sales. HPE is nearing its target date for acquiring Juniper Networks. The deal has approval from major regions and is awaiting approval from the US DOJ.
EPD recently declared a dividend raise, the second raise in a year. These dividend increases reflect strong business fundamentals. I expect continued dividend and EPS growth due to many catalysts, such as potential policy tailwinds from a Republican administration and its ongoing expansion projects.
Apart from the distribution hike, EPD is repurchasing units to return capital to unit holders.
Enterprise Products Partners unitholders are basking in the glory of the next step in its rally, as Trump regains control of the White House. EPD has several growth optionalities under its belt, as it seeks to tap on the insatiable AI growth spurt. EPD's solid cash flow distributions and adjusted EBITDA profitability should support capacity addition plans in the works.
HPE's Q4'24 revenues grew 15.65% YoY to $8.48 billion, with EBITDA up 20.41% and free cash flow at $1.42 billion. HPE's server products, especially GreenLake Cloud, position it well for AI and hybrid cloud growth, justifying a 'buy' rating. HPE's stock, up 28.95% TTM, shows undervaluation with a trailing P/E of 14.22x and a DCF valuation of $27.72/share.
GOTHENBURG, SWEDEN / ACCESSWIRE / January 6, 2025 / Smart Eye (STO:SEYE)(OTC PINK:SMTEF)(FRA:SE9) today announced that it has entered into an agreement to license the iris recognition technology from the Swedish company Fingerprint Cards (Fingerprints) listed on Nasdaq Stockholm, for a total consideration of SEK 50 million plus VAT. The consideration consists of an initial fixed license fee of SEK 23 million plus VAT payable in Smart Eye shares, an additional up to SEK 17 million plus VAT divided into two milestone payments, the first payable upon Smart Eye being awarded its first design win incorporating any part of the iris recognition asset, and the second payable upon the first SOP (Start of Production), marking the transition to manufacturing readiness and finally a maximum of SEK 10 million plus VAT in royalty payments based on Smart Eyes sales within the automotive industry.
Enterprise Products Partners is expanding export capabilities. Voters demand lower prices, yet political decisions on LNG project permits could drive natural gas prices higher, conflicting with voter desires. Despite the green revolution's popularity, fossil fuel usage continues to grow, with renewables making a minimal impact.
Axon's core business of TASERS, body cams, and cloud services for public safety providers continues to perform well. Axon completed its acquisition of Dedrone on October 2, 2024, enhancing its capabilities in airspace protection against drones. The company's solid core business and strategic move into new potentially profitable markets, such as drones, make it an attractive investment to consider.
Enterprise Products Partners L.P. has rallied by double-digits post-election and has finally returned to pre-pandemic levels. Management continues to manage the company with a conservative balance sheet. Management anticipates significant CapEx growth in 2025, and I expect spending to remain elevated given the new administration.
EPD boasts a stable business model and is not significantly exposed to the volatility in oil and gas prices.
The software space has generally been a great place to look for winning stocks over the past decade or so. But some investors are unaware of many of the software stocks out there.