blog

Latest from the Quantamize Blog

Global Stocks Trending in the News for January 7th, 2019

Jan 07, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

Click name for Q-Factor rating and financials data.

Global Consumer Stocks Trending in the News

  • Anheuser-Busch InBev (BUD) was downgraded by Goldman Sachs today to neutral from buy.  Anheuser-Busch InBev, like a number of players in the sector, is likely to have a tough 2019 as demand is expected to be less than originally expected.  Anheuser-Busch InBev is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Cal-Maine (CALM) reports FY2Q2019 financials that miss the lowest analyst estimates. Cal-Maine generated EPS of USD$0.45/share in FY2Q2019 while analyst estimates ranged between USD$0.50/share and USD$0.55/share. Additionally, Cal-Maine’s sales of USD$356mm missed analyst estimates that ranged between USD$357mm and USD$369mm. Cal-Maine is rated “Neutral” in our US SMID-Cap and “Unattractive” in our US Consumer Staples Global Top Stock Ideas.
  • Dollar Tree (DLTR) has Starboard Value as a shareholder, with a 1.7% stake, according to the Wall Street Journal.  Dollar Tree is being pushed to sell its Family Dollar division and to make changes to its pricing model.  Starboard Value has also named seven candidates for Dollar Tree’s board.  Dollar Tree is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • GameStop (GME) shares are rising after a Wall Street Journal report late Thursday night said that private equity firms Sycamore Partners and Apollo Global are both bidding for a company. A potential deal could be announced as soon as mid-February, the report details. Both Sycamore and Apollo did not comment on the story. GameStop is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Hudson Bay Company (TSX: HBC), owner of Sak’s 5th Avenue, is one step closer to going private, according to a report in the NY Post on Friday.  The executive chairman, Richard Baker, acquired a block of shares from Ontario Teachers Pension Fund in a deal valued at USD$126 million.  The acquisition takes he and his partners to a stake of over 70% of Hudson Bay.  Hudson Bay Company is rated “attractive” in our Canada All-Cap Global Top Stock Ideas.
  • Lamb Weston (LW) reported adjusted EPS for FY2Q2019 that surpassed analysts’ consensus estimates. Lamb Weston generated an adjusted EPS of USD$0.80/share in FY2Q2019 while analysts expected just USD$0.72/share. Lamb Weston’s FY2Q2019 sales of USD$911.4mm also beat analysts’ consensus of USD$897.2mm. Lamb Weston is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas. 
  • Marriott International (MAR) lowered the estimate of the number of people affected by the data breach it recently disclosed.  It is now estimated hackers got access to the personal data of up to 383 million people.  Original estimates from Marriott International were that over 500 million people had been affected.  Marriott International still has not disclosed how hackers got access to its systems.  Marriott International is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • NEXON Co. Ltd. (TSE: 3659) founder Kim Jung-ju said in a statement that he is considering ways to make the company more competitive. Kim detailed further that he will announce when detailed measures are decided. Nexon is not rated in our Global Top Stock Ideas. 
  • Investors suing Tesla (TSLA) over its CEO’s tweets are attempting to drag his girlfriend at the time into the case.  Plaintiffs say Tesla CEO Elon Musk was with his girlfriend when he sent the texts about taking Tesla private that are the source of the case and that she may have relevant information about the case.  Musk is vehemently against her being subpoenaed.  Tesla is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Tesla (TSLA) today broke ground on its new factory in China.  Tesla calls the newest factory Gigafactory 3 and is located in Shanghai.  Tesla’s factory will be the first production facility of its type that is fully owned by a foreign company.  Tesla expects to build the factory in record time.  Tesla is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Alphabet’s (GOOGL) Verily division, formerly known as Google Life Sciences, has raised USD$ 1 billion in funding to grow its business.  This round of funding was led by Silver Lake, an investment fund backed by a host of large international companies.  Verily is involved in a number of projects including glucose monitoring contact lenses and a medical monitoring smartwatch for older adults.  Alphabet is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Alphabet Inc. (GOOGL) was upgraded to buy from hold at Pivotal Research Group while its price target for the tech giant was raised from USD$1,010/share to USD$1,240/share. Pivotal cited that Google’s parent company, “remains the dominant player in digital advertising,” as reasoning for the upgrade. Alphabet is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Apple (AAPL) shares fell 10% yesterday in the wake of its guidance cut for 1Q revenue.  Apple’s action sent global markets lower yesterday.  Apple is now the 5th largest seller of mobile phones in China now, with 4 local players selling more phones and often at a price point well below what Apple sells its iPhones for and now with most if the same features.  Analysts say many local players are more in tune with the tastes of Chinese consumers than Apple.  Apple is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Apple Inc. (AAPL) and Samsung (KOSE: A005930) have announced a deal that will see the iPhone maker offer iTunes movies and TV shows on its rival’s TV sets. The move by Apple displays a shift towards developing its tech and media services business as product sales continue to wane for the company. Apple is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas. Samsung is not rated in our Global Top Stock Ideas. 
  • CBS News  (CBS) has named its first female president of the company.  CBS News named Susan Zirinsky, the producer of “48 Hours”, as its new president.  CBS news has suffered ratings weakness and the loss of key anchors and its new president will be tasked with turning the division around.  CBS Corp. is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Intel Corporation (INTC) has been upgraded to buy from neutral at Bank of America Merril Lynch. Bank of America also raised its price target for Intel from USD$52/share to USD$50/share. In a note to clients, Bank of America cited that Intel, “provides attractive exposure to growth trends in cloud computing, AI, advanced autos, and 5G.” Intel is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Nvidia (NVDA) introduced a new gaming chip, the GeForce RTX 2060 chip, last night at a CES event.  The RTX 2060 is 60% faster than prior generation chips and according to the company, puts Turing architecture within reach of many more PC gamers worldwide.  Nvidia is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • ProSiebenSat.1 Media SE (XTRA: PSM) shares are falling, touching their lowest intraday price since December 2011, after analysts slashed the traditional television operator’s price target. Analysts at Independent Research GmbH and Morgan Stanley cut ProSiebenSat.1’s price target, citing lack of momentum for the classical TV business in the medium-term. Analysts are also concerned about the advertising trend from traditional TV to streaming. ProSiebenSat.1 is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Qualcomm’s (QCOM) trial against the US Federal Trade Commission began on Friday in California.  The US Federal Trade Commission alleges that Qualcomm abused its monopoly on mobile chips.  The case is being closely watched by a host of technology companies as the outcome of the 10-day, no jury trial could have widespread effects on the technology industry.  Qualcomm derives more revenue from licensing its patents than it does from selling actual chips.  Qualcomm is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Snap (SNAP) was downgraded at Goldman Sachs Friday to neutral from buy.  Snap's price target was reduced to USD$6 from USD$10. Goldman's target for Snap implies just 5.6% upside to last close.  Snap is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Texas Instruments (TXN) has been downgraded from buy to neutral at Bank of America Merril Lynch. Additionally, Texas Instruments has its price target lowered from USD$117/share to USD$105/share, implying an 18% upside from Thursday’s close. Texas Instruments is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Alstom SA (ENXTPA: ALO) shares are trading lower after Les Echos reported that the European Union (EU) is unlikely to approve the rail business’ merger with Siemens AG (DB: SIE). The merger will reportedly not be approved because of a competitive threat from China. Alstom is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas. Siemens is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Six current and former BASF SE (DB: BAS) engineers have been arrested in Taiwan for allegedly accepting bribes and sharing the German company’s technology with China’s Jiangyin Jianghua Microelectronics Materials Co. (SHSE: 603078). The employees were reportedly offered 40mm yuan (USD$5.8mm).  BASF SE is rated “Top Short” in our European Large-Cap Global Top Stock Ideas. Jiangyin Jianghua Microelectronics Materials is not rated in our Global Top Stock Ideas.
  • Daimler AG (XTRA: DAI) investors are launching a class action lawsuit in Germany against the company over its diesel engines scandal.  Daimler was late to inform clients too late about its use of defeat devices in its diesel vehicles.  The case has been filed in Stuttgart.  Daimler is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • General Motors Company (GM) was upgraded to outperform from market perform by GMO while its price target for the automobile manufacturer was raised from USD$38/share to USD$41/share. BMO cited a strong outlook and better catalysts from GM in 2019 for the upgrade. GM is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Norwegian Air Shuttle ASA (OB: NAS) shares are gaining after Pareto said that the firm’s December yield was ahead of its estimate while the firm’s load factor was below its estimate. Additionally, Pareto said that, while Norwegian Air’s hedging loss of NOK2bn adds pressure on its book equity, there is no covenant breach expected in FY4Q2018. Norwegian Air is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.
  • United Continental (UAL) started its new rules for support animals on its flights on Friday.  United Continental is limiting emotional support animals on flights to only dogs and cats, with no animals less than 4 months old.  United Continental has seen an increase in incidents on longer flights where, it says, animals are not accustomed to being for so long.  United Continental is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Volvo’s (OM: VOLV B) SEK7bn provision, equal to SEK3.50/share, related to its emissions-control component flaw is better than the SEK10bn, or SEK5/share, that Citi included it its price target. The news is a relief for investors as the company will reportedly consider paying an extra dividend. Volvo is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Swiss Re AG (SWX: SREN) has reportedly been approached by British insurer Rothesay Life about a potential acquisition. The acquisition would reportedly be for Swiss Re AG’s ReAssure unit for about 3.5bn pounds (USD$4.4bn). Swiss Re AG is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  

Global Commodities Stocks Trending in the News

  • PG&E (PCG) is being sued by California power generator Calpine (CPN) blaming PG&E for the Camp Fire.  Calpine is seeking USD$20mn for damages its Geysers Power generating plant suffered in the fire.  Calpine is alleging PG&E’s equipment was to blame for starting the fire.  PG&E is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  Calpine is not rated in our Global Top Stock Ideas.
  • PG&E (PCG) is considering whether to file bankruptcy protection, according to a report in Bloomberg.  PG&E is looking to the state of California to help it with legislation as it faces billions and billions of dollars in liabilities over the fire.  PG&E has not made any decision yet as to how it will proceed.  PG&E is rated is “Attractive” in our US Large-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Bayer (DB: BAYN) are trading higher after receiving a favorable ruling in its Roundup case.  The judge has limited the evidence that can be presented by the plaintiffs, a ruing that could potentially benefit Bayer.  Plaintiffs will not be able to allege that Bayer’s Monsanto unit tried to influence regulators who were overseeing its use in agriculture.  Bayer is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Eli Lilly (LLY) is acquiring Loxo Oncology (LOXO) for USD$235 per shares, or about USD$8 billion.  Eli Lilly is expanding its cancer treatment business with the acquisition.  The companies will hold a press conference this morning to go over the details of the deal.  Eli Lilly is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  Loxo Oncology Nvidia is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Rite-Aid (RAD) has been notified by the New York Stock Exchange that it is no longer in compliance with USD$1 minimum listing price.  Rite-Aid is trading at 76 cents.  Rite-Aid has six months to remedy the situation and had said it is likely to seek a reverse split at the next shareholders meeting.  Rite-Aid is rated “Neutral” in our US SMID-Cap and “Unattractive” in our US Consumer Staples Global Top Stock Ideas.

 

Global Top Stock Ideas
TOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETS
MONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS