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Global Stocks Trending in the News for January 21st, 2019

Jan 21, 2019

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Global Consumer Stocks Trending in the News

  • Casino, Guichard-Perrachon (ENXTPA:CO) announces it will see properties worth 501 million Euros to Fortress Investment Group.  The portfolio of properties has implied yield of 53.9% and includes 13 Casino hypermarkets, 3 Casino hypermarkets and 10 Casino supermarkets. Casino is rated “Neutral” in our Europe Large-Cap Global Top Stock Ideas.   
  • Netflix (NFLX) reported 4Q18 EPS of 30 cents while 24 cents was consensus .  Netflix 4Q18 revenue of USD$4.19 billion came in line with USD$4.21 billion consensus .  Netflix added 8.8 million new subscribers, below the consensus of  9.4 million.  Netflix gave 1Q19 revenue guidance of USD$4.49 billion while present consensus is USD$4.60 billion.  Netflix said it has no plans to cut The Bird Box despite cries from critics to remove the film.  Netflix is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Sears (SHLD.Q) creditors do not want to see ESL Investments, its main shareholder, win the auction selling Sears off as part of its bankruptcy.  The group of creditors asked the judge for permission to sue ESL and its President Eddie Lambert-also the CEO of Sears.  The creditor group accuses ESL and Mr. Lambert of slowly stripping Sears of all its best assets only to reacquire it in the auction.  Sears is not rated in our Global Top Stock Ideas. 
  • Tesla (TSLA) is cutting 7% of its staff in a cost-cutting move.  Tesla is looking to cut costs in an effort to keep the cost of the Model 3 a slow as is possible in the wake of the federal tax credit expiring.  CEO Elon Musk said, “The road ahead is very difficult”.  Tesla is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Thor Industries (NYSE:THO) expected acquisition of Erwin Hymer Group is expected to exclude Hymer’s North American operations.  The combination of Thor and Erwin Hymer will create the world largest RV manufacturer with operations presence in both the United States and Europe.  Thor Industries is a “Top Short” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Tiffany and Co. (TIF) is reporting that its FY2018 net earnings will likely come in at the lower end of its previous guidance between USD$4.65/share and USD$4.80/share. CEO Alessandro Bogliolo is attributing underwhelming holiday sales performance and lower sales in foreign markets, primarily China. Tiffany’s is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • VF Corp (VFC) reported fiscal 3Q18 EPS of USD$1.16 above USD$1.08 consensus.  VF Corp fiscal 3Q18 revenue of USD$3.94 billion rose 7% y/y.  VF Corp raised 2019 EPS guidance to USD$3.52-3.57.  VF Corp is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Walmart (WMT) and CVS Health Corp (CVS) have reached a resolution concerning their disagreement over pricing. The disagreement drove Walmart to cut some ties with CVS Health Corp earlier in the week. In a joint statement Friday, the companies informed that Walmart will allow its stores to participate in CVS Health Corp’s pharmacy networks. Walmart is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas. CVS Health Corp is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas

Global Information Technology and Communication Services Stocks Trending in the News

  • Apple (AAPL) supplier Foxconn has cut 50,000 seasonal jobs at its factory in China.  The jobs are renewed monthly from August until January, but this year there has not been the need for these workers given lower handset sales expected.  Apple is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Facebook (NASDAQ: FB) announces it is in the process of limiting the number of forwards that can be sent of a WhatsApp message.  This decision is part of Facebook’s attempt to fight fake and misleading news from going viral on its different platforms.  Facebook is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Info Tech Global Top Stock Ideas.
  • SoftBank Group Corp (TSE: 9484) will invest USD$400 million in First Cry, according to a report in the Eastern Times.  FirstCry, the omni-channel retailer of baby and mother related goods, is being valued at USD$600-700 million.  Softbank is rated “Top Buy” in our Japan Large-Cap 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 and “Top Buy” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • BAE Systems (LSE:BA) announces sale of its armored vehicles unit, which includes the Challenge 2 tank, to a German rival Rheinmetall for £30 million.  BAE Systems is rated “Neutral” in our UK Large-Cap Global Top Stock Ideas. 
  • J.B. Hunt Transport (JBHT) reported 4Q18 EPS of 81 cents while USD$1.24 was consensus, though a change in reporting does not make the numbers comparable.  J.B. Hunt Transport 4Q18 operating revenue of USD$2.32 billion came in line with USD$2.30 billion consensus.   Intermodal revenue was USD$1.26 billion while dedicated contract solutions revenue was USD$595.8 million.  J.B. Hunt Transport is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  J.B. Hunt Transport is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Kansas City Southern (KSU) reported 4Q18 adjusted EPS of USD$1.56/share while consensus was for USD$1.53/share.  Kansas City Southern generated CY4Q18 revenue of USD$694.0mm while analysts expected USD$685.2mm.  Kansas City Southern's operating ratio of 63.1% in CY4Q2018 was slightly below consensus for 64%.  Kansas City Southern is rated “Attractive” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • American Express (AXP) reported 4Q18 EPS of USD$2.32 while USD$1.80 was consensus .  American Express 4Q18 revenue of USD$10.50 billion came in line with USD$10.57 billion consensus .  American Express saw loan loss provision grow 14% in the quarter to USD$954 million  American Express gave full year 2019 revenue guidance of USD$7.85-8.35 billion.  American Express is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Bank OZK (OZK) reported 4Q18 EPS of 89 cents while 83 cents was consensus.  Bank OZK 4Q18 net income of USD$115 million came in line with consensus.    Bank OZK is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • Citizens Financial (CFG) reported 4Q18 EPS of 98 cents above 94 cents consensus.  Citizens Financial 4Q18 revenue of USD$1.59 billion came in line with USD$1.60 billion consensus .  Citizens Financial NIM was 3.27% with total write-offs of USD$85 million.  Citizens Financial an is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Regions Financial (RF) reported 4Q18 EPS of 37 cents while 38 cents was consensus .  Regions Financial 4Q18 revenue of USD$1.44 billion came in line with USD$1.48 billion consensus .  Regions Financial common equity Tier 1 ratio 9.9%, NIM 3.5%.  Regions Financial an is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • SunTrust (STI) reported 4Q18 EPS of USD$1.50 above USD$1.43 consensus.  SunTrust 4Q18 revenue of USD$2.39 billion came in line with USD$2.36 billion consensus .  SunTrust common equity Tier 1 ratio 9.21%, NIM 3.27%.  SunTrust is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.

Global Commodities Stocks Trending in the News

  • Schlumberger (SLB) reported 4Q18 EPS of 36 cents in line with 35 cents consensus.  Schlumberger 4Q18 revenue of USD$8.2 billion came in line with USD$8.04 billion consensus .  Schlumberger sees 2019 capex dropping to USD$1-5-1.6 billion, down from USD$2.1 billion in 2018.  Schlumberger is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.​​

Global Healthcase Stocks Trending in the News

  • Takeda Pharma (TSE: 4502) is considering the sale of up to USD$3 billion in emerging markets assets as it seeks to lower its debt load.  Takeda is in early talks to gauge interest in some of these assets in the wake of its USD$62 billion takeover of Shire Plc.   Takeda had its credit rating cut after increasing its debt load to complete the Shire deal.  Takeda is rated “Unattractive” in our Japan Large-Cap Global Top Stock Ideas. 

 

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