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Global Stocks Trending in the News for January 17th, 2019

Jan 17, 2019

 

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Global Consumer Stocks Trending in the News

  • Anheuser-Busch InBev SA (ENXTBR: ABI) shares were downgraded to underperform from hold at Jefferies. Anheuser-Busch maintains 26 buy recommendations, 7 hold recommendations, and 2 sell recommendations across industry forecasts. Additionally, analysts have lowered the consensus price target for Anheuser-Busch by 15% over the last 3 months. Anheuser-Busch is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.  
  • McDonald’s (MCD) lost a case in the EU that cost it its right to the trademark for the term “Big Mac”.   The EU Intellectual Property Office ruled McDonald’s does not have the right to the name, instead granting that right to Ireland’s Supermac chain.  McDonald’s is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Nordstrom (JWN) was downgraded to market perform from outperform at Telsey Advisory Group.  Telsey cut Nordstrom price target to USD$56 to USD$72, an 18% upside from last close.  Nordstrom is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Pandora A/S (CPSE: PNDORA) Christmas season sales declined at Signet Jewelers Limited (SIG), the retail company said in a statement. Signet detailed in its statement that the firm’s product category, labeled as Other, “declined driven by a strategic reduction of owned brand beads, as well as declined in Pandora.” Pandora is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Signet is not rated in our Global Top Stock Ideas.
  • Reckitt Benckiser Group’s (LSE: RB) Chief Executive Officer, Rakesh Kapoor, is planning to step down after 8 years in the position. Kapoor’s stint as CEO was plagued by setbacks, including a cyber attack, manufacturing glitches, and investor criticisms over his substantial compensation package. Reckitt is rated “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Electronic Arts Inc. (EA) have reportedly canceled development of their open-world Star Wars game. The cancellation is raising questions if EA can retain their contract with Disney for the Star Wars intellectual property when the contract is up for renewal in 2024. Additionally, Jefferies downgraded its recommendation for EA from buy to hold. EA is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Fiserv (FISV) reports preliminary financials for CY4Q2018 while announcing the all-stock acquisition of First Data Corporation (FDC). The acquisition by Fiserv values First Data at an about USD$22bn. Additionally, Fiserv reported that it expects CY4Q2018 EPS between USD$0.84/share and USD$0.85/share while analysts’ consensus calls for USD$0.87/share. Fiserv is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. First Data is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Fiserv (FISV) has lined up bridge loan financing for its planned acquisition of First Data (FDC).  First Data has a USD$18 billion debt load which includes USD$13 billion of loans and USD$5 billion of bonds.  Fiserv said it intends to keep its BBB rating.  Fiserv is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. First Data is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Sage (LSE: SGE) reported a 10.5% jump in fiscal 2Q19 revenue to 387 million pounds.  Sage saw subscription growth of 27.7% while total organic revenue growth was 7.6%.  Sage reiterated 2019 guidance with Shore Capital reiterating its buy rating in the wake of these results.  Sage Data is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.
  • Snap Inc. (SNAP) shares are falling after an SEC filing revealed the resignation of Chief Financial Officer Tim Stone. The Snap SEC filing details that the CFO’s resignation is not related to, “any disagreement with us on any matter relating to our accounting, strategy, management, operations, policies, regulatory matters, or practices (financial or otherwise).” Snap is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Taiwan Semiconductor (TSEC:2330) provided revenue guidance well below consensus.  Taiwan Semiconductor forecasts 2019 revenue of USD$7.3-7.4 billion while present consensus is for USD$8.1 billion.  The maker of chips for Apple (AAPL) continues to feel the slowdown in handset sales.  Taiwan Semiconductor is not rated in our Global Top Stock Ideas.  Apple is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Alcoa (AA) reported 4Q18 EPS of 66 cents while 58 cents was consensus .  Alcoa adjusted ebitda of USD$749 million topped USD$717 million consensus.  Alcoa sees a deficit in aluminum continuing in 2019, with a 1.7-2.1 million ton deficit estimated while a surplus of alumina is expected driven by China.  Alcoa is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Bovis Homes (LSE: BVS) shares are trading higher after the company reported that it sees FY2018 profit ahead of analyst expectations. Additionally, Canaccord Genuity analyst Aynsley Lammin, who maintains a buy recommendation for Bovis Homes, said that the company’s valuation looks attractive against its peers. Bovis Homes is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • CSX (CSX) reported 4Q18 EPS of USD$1.01 while 99 cents was consensus .  CSX 4Q18 revenue of USD$3.14 billion came in line with USD$3.12 billion consensus .  CSX operating margin this quarter was 60.3% and CSX expects that to improve in 2020.  CSX completed its USD$5 billion share buyback and authorized another USD$5 billion buyback.  CSX is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • DSV A/S (CPSE:DSV), the Danish freight concern, is bidding USD$4 billion for Panalpina Welttransport Holding (SWX:PWTN), its Swiss rival.  DSV is looking to create a shipping concern that would be #4 in global logistics.  This is DSV’s second bid for a sector player in the last 6 months.  DSV is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.  Panalpina Welttransport Holdings is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.
  • Embraer (ERJ) provided 2019 revenue guidance, expecting USD$5.3-5.7 billion in revenue.  Embraer expects to deliver 85-95 commercial jets, 90-110 executive jets, 10 Super Tucano military aircraft and 2 KC-390 cargo aircraft.   Guidance includes costs associated with setting up its JV with Boeing (BA).  Embraer is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.  Boeing is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Fastenal (FAST) reported 4Q18 EPS of 59 cents while 60 cents was consensus .  Fastenal 4Q18 revenue of USD$1.22 billion came in line with USD$1.23 billion consensus .  Fastenal saw sales grow 8.7% in the quarter.  Fastenal is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Ford (F) reported a preliminary 2018 profit of USD$1.30, a touch below USD$1.32 consensus.  CFO Bob Shanks said he expects 2019 to see an improvement in ebitda , though that cannot be guaranteed.  Ford is entering 2019 with plans to abandon the sedan market, focusing mostly on SUVs.  Ford is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Norsk Hydro (OB: NHY) shares are reacting positively after regulators said it can reopen its Alunorte mine.  Brazilian environmental regulators said Norsk Hydro can resume production at the mine, removing the embargo that was in place.  Norsk Hydro is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • PPG Industries (PPG) reported FY4Q2018 financials that slightly beat analysts’ expectations. PPG generated an adjusted EPS from continuing operations in FY4Q2018 of USD$1.15/share while analysts’ consensus called for USD$1.10/share. PPG’s revenue of USD$3.65bn in FY4Q2018 met analyst expectations of USD$3.65bn. PPG is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • PulteGroup (PHM) was downgraded by BTIG to sell from neutral.  PulteGroup’s price target was set at UD$23.  The downgrade comes after a 14% run in the stock that is now trading at a 21% premium to its peers.  PulteGroup is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • United Continental (UAL) reported 4Q18 EPS of USD$2.41, well above consensus of USD$2.04.  4Q18 revenue grew 11% to USD$10.49 billion, also ahead of USD$10.377 billion.  4Q18 PRASM grew by 5%.  United Continental expects 1Q19 capacity to grow 5-6%.  United Continental is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Bank of America (BAC) reported CY4Q2018 earnings that broadly beat analysts’ consensus estimates led by the bank’s retail business. Bank of America generated EPS of USD$0.70/share in CY4Q2018 while analysts expected USD$0.63/share. Bank of America also increased its efficiency ratio from 58% a year ago to 65% in CY4Q2018. Bank of America is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Bank of New York Mellon Corporation (BK) reported FY4Q2018 financials that mostly surpass analyst expectations. Bank of New York generated an adjusted EPS of USD$0.99/share in FY4Q2018 while analysts expected USD$0.93/share. Bank of New York’s net interest margin of 1.24% in FY4Q2018 slightly missed analysts’ consensus forecast of 1.28%. Bank of New York is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  
  • BB&T Corporation (BBT) reported FY4Q2019 financials pre-market Thursday that matched analyst estimates. BB&T generated an adjusted EPS of USD$1.05/share in FY4Q2018 while analysts’ consensus called for USD$1.05/share. BB&T’s net interest margin of 3.49% edged slightly past analysts’ consensus net interest margin estimate of 3.48%. BB&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • BlackRock (BLK) reported 4Q18 EPS of USD$6.08 versus USD$6.28 consensus.  4Q18 revenue of USD$3.43 billion came in-line with consensus.  BlackRock increased quarterly dividend 5% to USD$3.30.  BlackRock is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • The Charles Schwab Corporation (SCHW) reported FY4Q2018 earnings and revenue that edged past analysts’ consensus estimates. Schwab generated a FY4Q2018 EPS of USD$0.65/share while analysts expected USD$0.64/share. Schwab also beat analysts’ consensus revenue estimate of USD$2.64bn in reporting its FY4Q2018 revenue of USD$2.67bn. Schwab is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Comerica (CMA) reported FY4Q2018 financials that matched the highest analyst estimate and beat analysts’ consensus estimate. Comerica generated an adjusted EPS of USD$1.95/share in CY4Q2018 while analysts’ consensus called for USD$1.88/share. Comerica also reported that it sees a common equity tier 1 capital ratio between 9.5% and 10% in FY2019. Comerica is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • Deutsche Bank AG (DB: DBK) Chief Executive Officer Christian Sewing detailed on Tuesday that the bank launched a further internal investigation into its role as a correspondent bank for Danske Bank’s (CPSE: DANSKE) Estonian unit. At an event in Berlin on Tuesday, Sewing said that Deutsche Bank probed its role in Danske Bank’s tax evasion scheme, “long before the cases became public.” Deutsche Bank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Danske Bank is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Goldman Sachs (GS) reports CY4Q2018 financials that largely please investors and analysts. Goldman Sachs generated an EPS of USD$6.04/share in CY4Q2018 while analysts’ consensus called for USD$5.30/share. Goldman Sachs’ revenue fell 0.5% y/y to USD$8.08bn although it still beat analysts’ consensus by USD$580mm. Goldman Sachs is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Key Bank (KEY) reported 4Q18 EPS of 45 cents while 47 cents was consensus .  Key Bank 4Q18 revenue of USD$1.64 billion came in line with USD$1.64 billion consensus .  4Q18 NIM on a taxable equivalent basis was 3.16%, in-line with 3.19% consensus.  Key Bank is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Morgan Stanley (MS) reported 4Q18 EPS of  73 cents while 89 cents was consensus .  Morgan Stanley 4Q18 revenue of USD$8.5 billion came well below USD$9.35 billion consensus .  FICC sales and trading revenue came at USD$564 million while USD$822 million was consensus .  Morgan Stanley is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • PNC Financial Services Group (PNC) reported FY4Q2018 financials that disappoint investors and analyst expectations. PNC saw an EPS of USD$2.75/share in FY4Q2018 while analysts expected USD$2.80/share. PNC’s net interest margin of 2.96% in FY4Q2018 also missed analysts’ consensus estimate of 3.01%. PNC is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • US Bancorp (USB) shares are trading higher after reporting FY4Q2018 earnings that beat the highest analyst estimates. US Bancorp’s EPS of USD$1.10/share in FY4Q2018 surpassed analyst estimates that ranged between USD$1.02/share and USD$1.08/share. US Bancorp’s net interest margin of 3.15% was just lower than analysts’ consensus forecast of 3.16%. US Bancorp is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. 

Global Commodities Stocks Trending in the News

  • Kinder Morgan (KMI) reported 4Q18 EPS of 23 cents while 25 cents was consensus .  Kinder Morgan 4Q18 revenue of USD$1.96 billion came in line with USD$1.94 billion consensus .  Backlog fell to USD$5.7 billion.  Kinder Morgan is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.


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