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Bausch + Lomb IPO: What You Need to Know

Bausch + Lomb, a well-known leader in eye care, is about to hit Wall Street in what investment bankers almost certainly hope will jump-start a weak initial public offering (IPO) market.

Bausch Health Companies (BHC) is a global healthcare stock that develops pharmaceuticals, medical devices and over-the-counter medications, with focus areas in eye health, gastroenterology and dermatology.

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However, to help streamline its operations and pay down debt, Bausch is spinning off its Bausch + Lomb eye care division in what is shaping up to be one of 2022’s most anticipated IPOs.

Bausch + Lomb sells contact lenses, eye drops and even implantable lenses for cataract surgery in more than 100 countries. The division boasts more than 400 products, more than 260 of which came on the market since 2017.

You can thank Bausch + Lomb’s robust R&D arm, which has about 850 employees. The current product pipeline includes more than 100 projects, such as treatments for dry eye, contact lenses to slow myopia, and next-gen cataract equipment.

The focus on innovation has helped to grow the top line. For 2021, division revenues jumped by 10.6% to $3.8 billion – part of BHC’s overall revenues of $8.4 billion, up 5% – and the company flipped from a loss of $17 million to a net gain of $193 million.

“While it faces significant competition from other brands and generic products, the company is highly profitable with strong cash flow, and it has global brand awareness of more than 70%,” says Renaissance Capital, an IPO-focused registered investment adviser.

The Bausch + Lomb IPO will see the company list on the New York Stock Exchange under the ticker BLCO. The offering, expected May 5, should see 35 million shares listed at a price range of $21 to $24 per share. That would see the company raise $788 million at a valuation of $8.2 billion.

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The offering is a breath of fresh air in what has been a lousy year for IPOs. Financial markets platform Dealogic says that more than a thousand companies went public in 2021, raising roughly $316 billion in the process.

However, a weakening environment for stocks in late 2021 and into 2022 cramped the market’s appetite for offerings. Renaissance Capital says just 26 IPOs have priced in 2022 – off 80% from the same point last year.

Expect other potential offerings to keep their eyes trained on the Bausch + Lomb IPO. A favorable reception could get a few more new stocks into the market.

Finding a Modern Financial Adviser: 3 Questions to Ask

Whether it’s political unrest, a Black Swan event, a housing crisis or a global pandemic, there are very few “normal” years in the world of finance anymore. In the “post normal economy,” as Barry Ritholtz frames it, financial advisers need to be different than those of yesterday.

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Markets are more unpredictable. Volatility has become the norm. Digital asset markets never close. Those are just a few of the elements that have made investing even more challenging. Now, more than ever, it’s important that you have a financial professional on your side who can stop you from making decisions that you might regret. The onset of the pandemic is one example. Nearly all my clients called me wanting to sell out of equities on the exact same day. In the 33 days between February 19 and March 23 the MSCI World Index fell by 34%, and my clients seemingly had reached their breaking point. Did we sell? After a thoughtful discussion the answer is mostly no, and I can tell you that I had many of them thanking me six months later.

My point is that investors’ needs are changing. Financial advisers must continue to adapt and evolve with the individuals and families they serve. While it is also important that your financial adviser is in good standing with the SEC, has high integrity, always puts your best interests first and is an expert when it comes to your financial planning needs, I’d argue that those are table stakes – financial advisers of tomorrow need to be so much more.

Below is my list of three questions to ask yourself when deciding if a financial adviser possesses the qualities you should have at your disposal in the post-normal economy:

Are they a personality fit?

It’s imperative that your financial adviser can anticipate your needs and understands how you may react to worldly factors that may impact your portfolio. Your financial adviser should take the time to know you on a personal level, not just your portfolio. Do they understand your lifestyle? Your family dynamics? Having a deeper understanding of who you are will help them stay one step ahead and communicate with you on the proper channels during turbulent times.

One anecdote that can help portray my thinking is a story of a client of mine who was extremely politically oriented. When Barack Obama was re-elected to serve his second term, this client wanted to sell everything and wait it out. I was adamantly against selling out of their portfolio and backed up my advice with historical data. Hindsight is 20/20, and I will be the first to admit that I’m not always right, but in this specific case the market yielded strong returns each of the following four years and the Dow Jones Industrial Average notched 118 new highs. The point being, if I didn’t push back, that client would have missed out on market returns that they could never have made up.

Are they able to build a relationship deeper than the adviser-client dynamic?

It all comes down to trust. Do you feel that your financial adviser is going to always act in your best interest? It goes beyond being a fiduciary; you must feel like your financial adviser deeply understands your personal needs and goals. Do you feel that your financial adviser is your confidant? Your friend? They need to be more than that. You should feel like your financial adviser is an extension of your family.

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While I don’t believe that you have to loop in your financial adviser for all of life’s financial decisions, it’s important that you see them as part of your “inner circle” and that they are not someone who you speak to quarterly to discuss your portfolio and your financial plan. In today’s 24/7, always-on world, your financial adviser should be someone you are communicating with regularly and you connect with them on a personal level.

Are they able to offer a diversified investment portfolio?

In today’s market environment it is extremely important to diversify your portfolio outside of stocks and bonds. In fact, the traditional 60/40 portfolio is dead. If your financial adviser isn’t providing creative strategies to diversify your portfolio and invest in alternative assets, then they aren’t providing their clients with modern financial advice.

Investors need an inflation hedge and an alternative to fixed income and traditional equities.

To truly diversify, and give yourself the opportunity to experience outsized returns, you need to be investing in alternatives, including venture capital, real estate and private equity.

Amid the Ukraine-Russia war and coming off the heels of a global pandemic, it’s impossible to predict the next crisis that will rattle the markets. But there’s one thing for certain – there’s nothing “normal” about your financial life. To protect yourself and your hard-earned portfolio, make sure you are working with a financial adviser who possesses the above qualities. If there’s anything to be picky about in life, your financial adviser should be at or near the top of the list.

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Save Big Bucks By Being A One-Car Household

Of all the ways to save money, this couple never thought they’d try living with just one car. It wasn’t easy, but here’s how they made it work — and how much they saved with this lifestyle change.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

The 15 Best Value Stocks to Buy Right Now

In 2022, the old rules of investing have mostly gone out the window, but one thing hasn’t changed: Wall Street’s best value stocks continue to be an attractive place for investors to plunk down their money for the long term.

The S&P 500 is down roughly 10% year-to-date. War continues to rage in Ukraine and disrupt energy markets. And significant changes in interest-rate policy continue to upend investment strategies that have been profitable for several years running.

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But that’s the thing about investing. If you want to get ahead, it’s important to think beyond the obvious opportunities and consider a holistic approach that will generate returns even in even challenging environments. That involves looking beyond fashionable growth investments to value stocks that might been roughed up of late but still offer long-term upside.

In hopes of finding the best value stocks for investors right now, we looked for:

  • Companies with a minimum market value of about $1 billion
  • Those with forward price-to-earnings (P/E) ratios below the broader market (for reference, the S&P 500’s forward P/E is currently at 18.8)
  • Those with price/earnings-to-growth (PEG) ratios below 1 (PEG factors in future growth estimates, and anything under 1 is considered undervalued)
  • Strong analyst support, with at least 10 Wall Street experts covering the stock and the vast majority of those issuing ratings of Buy or Strong Buy

A few of these companies have admittedly seen trouble lately, hence their sagging stock prices, but even then, their underlying businesses are sound. And considering the broader challenges to every company on Wall Street, it’s important for investors to focus on high-quality picks over the latest flashy growth narrative, regardless of recent performance.

Here are 15 of the best value stocks to buy now.

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Share prices and other market data as of April 25. Analyst ratings courtesy of S&P Global Market Intelligence. Stocks are listed by analysts’ consensus recommendation, from highest score (worst) to lowest (best).

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Stock Market Today: Dow Surrenders 809 Points as Q1 Earnings Roll In

U.S. stocks opened the day in negative territory and losses accelerated as the session wore on. 

Earnings remained in focus, and several of today’s reactions were negative. General Electric (GE), for instance, spiraled downward 10.3% after its results. While the industrial conglomerate beat on the top and bottom lines in its first quarter, CEO Lawrence Culp warned the company is “trending toward the low end” of its full-year guidance as it continues “to work through inflation and other evolving pressures.” 

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JetBlue Airways (JBLU), meanwhile, shed 11.4% after the air carrier’s plans to reduce capacity growth in the short term offset a narrower-than-expected first-quarter loss. JBLU’s post-earnings decline pressured fellow airline stocks, with Alaska Air Group (ALK, -4.6%), Southwest Airlines (LUV, -3.0%) and Delta Air Lines (DAL, -3.2%) all finishing notably lower.

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The selling was broad-based, with consumer discretionary (-5.1%) and technology (-3.7%) the two hardest hit sectors. Only energy gained ground, adding 0.1% as U.S. crude futures climbed 3.2% to $101.70 per barrel.

At the close, the Nasdaq Composite was down 4.0% at 12,490 – its worst day since September 2020 –  the S&P 500 Index was off 2.8% at 4,175 and the Dow Jones Industrial Average was 2.4% lower at 33,240.

YCharts

Other news in the stock market today:

  • The small-cap Russell 2000 gave back 3.3% to 1,890.
  • Gold futures gained 0.4% to settle at $1,904.10 an ounce.
  • Bitcoin retreated 5.9% to $37,918.63. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) “Bitcoin was tentatively back above the $40,000 level as Wall Street became more optimistic with the long-term outlook for cryptocurrencies after reports that Fidelity Investments will allow Bitcoin into 401(k)s,” says Edward Moya, senior market strategist at currency data provider OANDA. “Bitcoin reversed lower as risk aversion returned to Wall Street; Russia’s suspension of gas supplies to Poland sent risky assets, including Bitcoin, sharply lower.”
  • Sherwin-Williams (SHW) jumped 9.4% after the paints and coatings retailer reported first-quarter adjusted earnings of $1.61 per share and revenue of $5 billion, both figures higher than analysts were expecting. SHW also reaffirmed its full-year guidance for adjusted earnings of $9.25 to $9.65 per share. “Our team delivered results in line with our expectations in an environment characterized by strong demand, ongoing cost inflation and choppy raw material availability that improved meaningfully in the final weeks of the quarter,” said John Morikis, CEO of Sherwin-Williams, in the company’s earnings release. 
  • United Parcel Service (UPS) slipped 3.5% after the delivery giant reported earnings. In its first quarter, UPS recorded adjusted earnings of $3.05 per share and revenue of $24.4 billion, higher than consensus estimates. The company also reiterated its full-year guidance, though CEO Carol Tome cautioned that we’re not likely to see the same kind of e-commerce growth witnessed during the pandemic going forward. Argus Research analyst John Eade (Buy) said weakness in the stock represents a “buying opportunity,” and that the company “remains well positioned to benefit from a number of positive trends.”

What Wall Street’s Saying About Social Media Stocks

One notable decliner in today’s trading: Twitter (TWTR). Shares retreated 3.9% to $49.68– one day after the company’s board of directors approved Elon Musk’s $44-billion, or $54.20 per-share, buyout of the platform. 

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News that the Tesla (TSLA) CEO is taking TWTR private has narrowed the field of social media stocks, but analysts are still upbeat about the few remaining primary players.

Case in point: S&P Global Market Intelligence pegs the average analyst price target for Facebook parent Meta Platforms (FB) – which joins Twitter on this week’s tech-focused earnings calendar – at $315.51, implying 44% potential upside from current levels. 

Today, we take a closer look at the social media stocks to watch post-Twitter and break down why Wall Street’s pros are so bullish on the group. Take a look.

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