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Global Stocks Trending in the News for January 28th, 2019

Jan 28, 2019

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Global Consumer Stocks Trending in the News

  • Amazon.com Inc. (AMZN) is requesting that consumer-goods companies begin to create brands exclusive to Amazon. GNC (GNC), an sweeteners and nutrition brand, and Tuft & Needle, a mattress company, are among the first to launch their exclusive Amazon products. The move is the latest example of Amazon trying to offer a wide selection of products at the lowest prices. Amazon is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Colgate-Palmolive (CL) reported fiscal second quarter EPS of 74 cents while consensus was for 73 cents.  Colgate-Palmolive fiscal second quarter revenue came at USD$3.81 billion, missing consensus of USD$3.77 billion.  Colgate-Palmolive gave guidance for 2019 revenue 2-4% growth in sales.  Colgate-Palmolive is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas
  • Kering (ENXTPA:KER) owes the Italian government 1.4 billion euros in back taxes.  The Italian government probed its Swiss subsidiary between 2011 and 2017.  The fine was expected and came within the range of analysts’ estimates.  Kering is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Nike (NKE) won a 10-year contract to supply Major League Baseball with apparel, a contract that was originally awarded to Under Armour (UAA).  The contract begins in 2020 and Under Armour backed out after originally winning in December 2016.  Nike is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  Under Armour is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Starbucks (SBUX) reported fourth quarter EPS of 69 cents while consensus was for 65 cents.  Starbucks fourth quarter revenue came at USD$6.63 billion while consensus was for USD$6.48 billion.  Starbucks is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Intel (INTC) reported fiscal second quarter EPS of USD$1.28 while consensus was for USD$1.22.  Intel fiscal second quarter revenue came at USD$18.66 billion, missing consensus of USD$19.01 billion.  Intel gave guidance for 1Q19 revenue of ~USD$16 billion, well below consensus of USD$17.34 billion and EPS guidance of 87 cents, well below USD$1.22 consensus.  Intel is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Mediaset (BIT: MS) and ProSiebenSat.1 (XTRA: PSM) shares surged after Italy’s MF Milano Finanza newspaper reported that the two companies could reach a potential deal as early as next month. The report cites people familiar with the matter while saying that Mediaset could review an offer at their next meeting, planned for early February. Mediaset is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas. ProSiebenSat.1 is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Nokia OYJ (HLSE: NOKIA) will receive CAD$40mm in funding from the government of Canada for research. The research will likely pertain to 5G research as Canada weighs a ban on Nokia rival Huawei. Nokia is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Ocado (LSE: OCDO) and Marks & Spencer (LSE: MKS) shares are both higher today on news of a potential tie-up.  The Daily Telegraph is reporting there are talks underway about a tie-up in supermarket operation.  There have been no comments from the companies as of yet.  Ocado is rated “Top Short” in our United Kingdom All-Cap Global Top Stock Ideas.  Marks & Spencer is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Telia Company AB (OM: TELIA) announced CY4Q2018 financials the largely missed analyst expectations. Telia reported adjusted EBITDA of 6.74bn Swedish krona in CY4Q2018, missing the lowest analyst estimates that ranged between 6.94bn Swedish krona and 7.36bn Swedish krona. Telia’s CY4Q2018 net sales of 22.21bn Swedish krona also missed analyst expectations of 22.42bn Swedish krona. Telia is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.
  • Versum Material Inc (VSM) announced it is merging with Entegris Inc (ENTG) combing 2 key makers of semiconductor parts.  Versum shareholders will receive 1.12 shares of Entegris in the transaction.  The new company with have a USD$9 billion market cap and USD$3 billion in revenue.  Versum is rated “Attractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  Entegris is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Vodafone Group Plc (LSE: VOD) officially suspended its equipment purchases from Huawei Technologies Co Ltd. Vodafone CEO Nick Read said on a call with reporters Friday, “We have decided to pause further Huawei in or core whilst we engage with the various agencies and governments and Huawei.” Vodafone is rated “Neutral” in our United Kingdom All-Cap Global Top Stock ideas.
  • Xilinx Inc. (XLNX) reported FY3Q2019 financials that largely surprised analyst expectations. Xilinx generated an EPS of USD$0.92 in FY3Q2019 while analysts expected just USD$0.86/share. The earnings surprise, fueled by growth in the company's 5G business, prompted Raymond James analyst Chris Caso to comment in a note to clients, “Boy do we feel dumb for missing this stock.” Xilinx is rated “Attractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas

Global Industrials Stocks Trending in the News

  • Air Products & Chemicals (APD) reported fiscal first quarter EPS of USD$1.50 while consensus was for USD$1.86.  Air Products & Chemicals fourth quarter revenue came at USD$2.24 billion while consensus was for USD$2.26 billion.  Air Products & Chemicals is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Caterpillar (CAT) reported fourth quarter adjusted EPS of USD$2.55 while consensus was for USD$2.99.  Caterpillar fourth quarter revenue came at USD$14.3bn, missing consensus of USD$14.36bn.  Caterpillar said that it sees CY2019 adjusted EPS between USD$11.75 and USD$12.75 while consensus USD$12.72. Caterpillar is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • DR Horton (DHI) reported fourth quarter EPS of 76 cents while consensus was for 78 cents.  DR Horton fourth quarter revenue came at USD$3.51  billion while consensus was for USD$3.49 billion.  DR Horton is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Lear (LEA) announced CY4Q2018 financials that met analyst estimates while affirming 2019 guidance given 10 days earlier. Lear observed net sales of USD$4.94bn in CY4Q2018 while analysts expected USD$4.98bn. Lear’s adjusted EPS of USD$4.05/share in CY4Q2018 surpassed analyst expectations of USD$3.92/share. Lear is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Nissan (TSE: 7201) is being investigated by the SEC over its pay practices and disclosures, according to a report in Bloomberg today.  The SEC is looking at controls in place to prevent improper payments and whether they are sufficient.     Nissan has confirmed the existence of the probe but has not confirmed specifics.  Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Norfolk Southern (NSC) reported fourth quarter EPS of USD$2.57 while consensus was for USD$2.28.  Norfolk Southern fourth quarter revenue came at USD$2.896 billion while consensus was for USD$2.84 billion.  Norfolk is rated “Attractive” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Schindler Holding AG (SWX: SCHN) was upgraded at HSBC from reduce to buy. In addition to the upgrade, HSBC increased its price target for Schindler from 190 franc/share to 255 franc/share, implying a 25% upside from Friday’s closing price.  Schindler is not rated in our Global Top Stock Ideas.
  • Siemens (DB: SIE) and Alstom (ENXTPA:ALO) are making changes to their plans to merge their rail operation to gain EU approval but have yet to assuage all the regulator’s concerns, according to Bloomberg.  The companies offered new concessions on January 25th and all indications are that they were not enough.  Alstom is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.  Siemens rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Vale (VALE) has seen the death toll from its tallying dam break at one of its mines in the state of Minas Gerais in Brazil grow to 58 people.  Over 200 people are still missing after a wall of mud leveled buildings and made roads in the area impassable.  Among the missing are many Vale employees who were in a building that was leveled by mud. Vale voted over the weekend to suspend its dividend in the wake of the disaster.  Vale is rated “Top Buy” in our Brazil All-Cap Global Top Stock Ideas.

 

 

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Global Financials Stocks Trending in the News

  • Deutsche Bank AG (DB: DBK) was awarded a commitment for new investment from Qatar, likely through the Qatar Investment Authority, amid the company’s continued attempt to merge with Commerzbank AG (DB: CBK). Neither Deutsche Bank nor the Qatar Investment Authority commented on the news. Deutsche Bank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Commerzbank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Discover Financial Services (DFS) reported fourth quarter EPS of USD$2.03 while consensus was for USD$2.05.  Discover Financial Services fourth quarter revenue came in line at USD$2.8 billion while consensus was for USD$2.8 billion.  Discover Financial Services is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • E-Trade Financial Services (ETFC) reported fourth quarter EPS of USD$1.07 while consensus was for USD$1.03.  E-Trade Financial Services fourth quarter revenue came at USD$735 million while consensus was for USD$744 million.  E-Trade Financial Services is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Mastercard (MA) will acquire Earthport (AIM: EPO), the UK payments company, for 33 pence per share, besting an offer by Visa (V) by 10%.  Mastercard is valuing Earthport at 233 million pounds.  Mastercard is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  Visa is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  Earthport is not rated in our Global Top Stock ideas.
  • S&P Global (SPGI) has been approved to establish a wholly-owned unit in Beijing, as per a statement by the People’s Bank of China. S&P Global was also approved to enter the Chinese bond rating market. The People’s Bank of China stressed that it will support more foreign agencies entering its credit rating market in the announcement. S&P Global is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.

Global Commodities Stocks Trending in the News

  • Eni SpA (BTI: ENI) and OMV AG (WBAG: OMV) will pay USD$5.8bn for a combined 35% stake in Abu Dhabi’s state oil company’s refinancing unit. The deal values Abu Dhabi National Oil Co. at USD$19.3bn. In addition to the acquisition, the companies will partner to form a trading unit selling refined products to international buyers. Eni is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. OMV is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.
  • Marathon Petroleum (MPC) announced a dividend increase of 15% to USD$0.53/share. The dividend will be paid on March 11th to shareholders as of February 20th's close. Marathon is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • NextEra Energy (NEE) reported CY4Q2018 operating revenue of USD$155mm while analysts expected USD$270.7mm. NextEra also provided full-year adjusted EBITA guidance between USD$1.2bn and USD$1.38bn, surpassing analysts’ consensus of USD$1.12bn.  NextEra Energy is rated “Neutral” in our US Large-Cap Global Top Stock Ideas 

Global Healthcare Stocks Trending in the News

  • AbbVie (ABBV) announced CY4Q2018 adjusted EPS that missed analyst estimates while providing full-year guidance that also missed analyst estimates. AbbVie reported an adjusted EPS of USD$1.90/share in CY4Q2018 while analysts’ consensus called for USD$1.94/share. AbbVie sees CY2019 adjusted EPS between USD$8.65/share and USD$8.75/share, the midpoint of which misses analysts’ consensus of USD$8.73/share. AbbVie is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • AbbVie (ABBV) saw its price target cut at Merrill Lynch to USD$87 from USD$95 while maintaining its neutral rating.  AbbVie’s results included a 17.5% drop in international sales for Humira, its blockbuster drug and the best-selling drug in the world.  AbbVie is facing competition from biosimilars in Europe for the first time and the news sent the stock lower.  AbbVie is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas
  • Hill-Rom Holdings, Inc. (HRC) reported adjusted FY1Q2019 EPS of USD$1.02/share, beating the highest analyst estimates that ranged between USD$0.98/share and USD$1.00/share. Hill-Rom's net revenue in FY1Q2019 of USD$683.5mm also beat analysts’ consensus of USD$676.4mm. Hill-Rom is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.​