Bullish on Enbridge, Neutral on Apple, and Bearish on Moderna
Investors who want dividend income should look at Enbridge (ENB). The company posted strong second-quarter results and reaffirmed its guidance for 2025.
Enbridge posted EBITDA of C$4.6 billion, up by 7% Y/Y. Cash from operations rose from $2.8 billion last year to $3.2 billion. For the year, it is expecting a DCF per share of $5.50 to $5.90.
Apple (AAPL), one of the “Magnificent 7,” slipped last week despite posting strong third-quarter results. Revenue rose by 9.6% Y/Y to $94.04 billion. Shareholders are worried that consumers bought more iPhones, Macs, and spent more on services to avoid tariffs. Now that tariffs are in effect, those “front-loaded” sales might hurt revenue in upcoming quarters.
Sustained growth is in question since Apple does not have an in-house artificial intelligence product.
In the vaccine sector, beware of Moderna (MRNA). Novavax (NVAX), BioNTech (BNTX), and Pfizer (PFE) are also risky investments. MRNA stock faced selling pressure last week after it posted a -41.1% Y/Y change in revenue, to $142 million. It lost $2.13 a share. In 2025, revenue is as low as $1.5 billion, compared to expectations of $2 billion.
Although the timing of contracted revenue shifted its revenue, it is managing costs. Capital expenditures are falling by $100 million.
