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Global Stocks Trending in the News for January 29th, 2019

Jan 29, 2019

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Global Consumer Stocks Trending in the News

  • 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.
  • Tesco (LSE:TSCO) announced it is cutting 9,000 jobs as it continues to pare its workforce.  Media reports over the weekend had a number much higher than what was announced yesterday.  Tesco still has about 300,000 employees.  Tesco is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Whirlpool (WHR) reported fourth quarter EPS of USD$4.75 while consensus was for USD$4.23.  Whirlpool fourth quarter revenue came at USD$5.66 billion, missing consensus of USD$5.75 billion.  Whirlpool gave guidance for ongoing EPS of USD$14-15 well below consensus that is presently USD$15.98.  Whirlpool sees a softer 2019.  Whirlpool is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • BT Group (LSE: BT.A, formerly British Telecom) is the first foreign company be granted a nationwide operating license in China.  BT’s new company in China is called BT China Communications Limited and is able to offer services directly to customers and bill than in the local currency.  BT is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Corning Inc. (GLW) announced core EPS of USD$0.59/share while consensus was for USD$0.57/share. Corning generated revenue of USD$3.08bn, beating analysts' consensus of USD$3.01bn. Corning is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Integrated Device Technology (IDTI) reported fiscal third quarter 2019 EPS of 50 cents that beat consensus of 46 cents.  Integrated Device Technology fiscal third quarter revenue came at USD$240.6 million, beating consensus of USD$235.6 million.  Integrated Device Technology is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Nvidia (NVDA) cut guidance for fourth quarter revenue yesterday.  Nvidia said it is seeing less growth in revenues than it has expected with fewer sales of gaming and data center platforms in China.  Nvidia sees fourth quarter revenue around USD$2.2 billion, down from USD$2.7 billion.  Nvidia is rated is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Ocado (LSE: OCDO) and Marks & Spencer (LSE: MKS) shares were both higher yesterday 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.  
  • Rockwell Automation (ROK) reported FY1Q2019 EPS of USD$2.21  while consensus was for USD$2.01  Rockwell Automation fourth quarter revenue came at USD$1.64bn, in-line with consensus of USD$1.64bn.  Rockwell Automation sees FY2019 EPS of between USD$8.85/share and USD$9.25/share, the midpoint of which beats consensus of USD$8.96/share.  Rockwell Automation is rated “Neutral” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Verizon (VZ) reported fourth quarter EPS of USD$1.12 while consensus was for USD$1.08.  Verizon fourth quarter revenue came at USD$34.28 billion, missing consensus of USD$34.44 billion.  Verizon gave guidance for 2019 EPS of ~USD$4.73.  Verizon is rated “Attractive” in our US 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.
  • Xerox (XRX) reported fourth quarter EPS of USD$1.14  while consensus was for USD$1.04.  Xerox fourth quarter revenue came at USD$2.53 billion, matching consensus of USD$2.56 billion.  Xerox gave guidance for 2019 EPS of USD$3.70-3.80.  Xerox is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology.

Global Industrials Stocks Trending in the News

  • 3M (MMM) reported fourth quarter adjusted EPS of USD$2.31 while consensus was for USD$2.28.  3M fourth quarter revenue came at USD$7.9 billion, missing consensus of USD$7.86 billion.  3M gave guidance for 2019 EPS of USD$10.45-10.90, down from USD$10.60-11.05.  3M is rated “Attractive” in our US Large-Cap Global Top Stock Ideas “Neutral” in our US Industrials Global Top Stock Ideas.
  • AK Steel (AKS) reported fourth quarter adjusted EPS of 16 cents beating consensus of 11 cents.  AK Steel fourth quarter revenue came at USD$1.68 billion, in line with consensus of USD$1.7 billion.  AK Steel gave 2019 EPS guidance of 51-57 cents.  AK Steel is rated “Unattractive” 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.
  • Deere & Co (DE) shares are falling after Caterpillar (CAT) reported its biggest earnings miss in 10 years.  Investors fear the same fate may befall Deere’s earnings but analysts are quick to point out that the weakness Caterpillar saw in Chinese construction is not a market Deere competes in at all.  Deere is rated “Neutral” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.  Caterpillar is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Harris Corp. (HRS) reported fourth quarter EPS of USD$1.88 while consensus was for USD$1.90.  Harris Corp. fourth quarter revenue came at USD$1.666 billion, in line with consensus of USD$1.64 billion.  Harris Corp. is rated “Top Buy” in our US Large-Cap and “Neutral” in our US Industrials.
  • L3 Technologies (LLL) reported fourth quarter EPS of USD$3.10 beating consensus of USD$2.69.  L3 Technologies fourth quarter revenue came at USD$2.77 billion, above consensus of USD$2.66 billion.  L3 Technologies is rated “Attractive” in our US Large-Cap and “Neutral” in our US Industrials.
  • Nissan (TSE: 7201) is being investigated by the SEC over its pay practices and disclosures, according to a report in Bloomberg yesterday.  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.
  • PulteGroup (PHM) reported fourth quarter EPS of USD$1.11 while consensus was for USD$1.10.  PulteGroup fourth quarter revenue came at USD$2.99 billion, missing consensus of USD$2.91 billion.    PulteGroup is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary 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.
  • 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.

Global Healthcare Stocks Trending in the News

  • 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
  • Biogen (BIIB) reported fourth quarter EPS of USD$6.33 while consensus was for USD$6.69.  Biogen fourth quarter revenue came at USD$3.53 billion, missing consensus of USD$3.39 billion.  Biogen gave guidance for 2019 EPS of USD$28-29.  Biogen is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Pfizer Inc. (PFE) reported fourth quarter EPS of USD$0.64 while consensus was for USD$0.63.  Pfizer fourth quarter revenue came at USD$14.0bn, missing consensus of USD$13.9 billion.  Pfizer gave guidance for 2019 EPS of between USD$2.82/share and USD$2.92/share while analysts’ consensus called for USD$3.04/share.  Pfizer is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology.

 

 

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