blog

Latest from the Quantamize Blog

European stocks broadly lower at the close on dimmer prospects for growth

Feb 07, 2019

Get Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your ReturnsGet Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your Returns
Get Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your ReturnsGet Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your Returns
 

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

European Markets

  • European stocks see broad selling in the wake of cuts to growth outlooks from both the EU and the Bank of England
  • The Euro Stoxx 600 closed down -1.49%, the FTSE 100 declined -1.11%, the DAX fell -2.67%, and the CAC 40 finished down -1.84%
  • The European Union (EU) slashes its growth forecasts for the major economies of Europe and warns that BREXIT and the deceleration in Chinese economic growth are threats to make the economic outlook for Euro region economies worse 
  • The Bank of England (BOE) cut its growth forecast for the UK economy after warning about the damage to the UK domestic economy from BREXIT and warns of a drop in investment
  • Contributing to the risk-off sentiment was news that President Trump and President Xi of China will not meet and close a trade deal before the March 1st deadline for the US to hike tariffs on USD$200+ billion in Chinese imports
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.14x
  • Real Estate (-0.17%), Food & Beverage (-0.3%), and Utilities (-0.5%) stocks were the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (-4.88%), Media (-2.72%), and Chemicals (-2.47%) stocks were the worst performers in the Euro Stoxx 600 today
  • 231 stocks in the Euro Stoxx 600 hit 4-week highs while 10 stocks closed at 4-week lows
  • 68 stocks in the Euro Stoxx 600 finished the trading session overbought while 0 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed up +2.55 points today to 16.17 after closing at 13.62 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Alliance Data Systems (ADS) announced CY4Q2018 adjusted EPS of USD$7.04 while consensus was for USD$6.94. Alliance Data Systems reported revenue of USD$2.06bn in CY4Q2018 while analysts expected USD$2.12bn. Alliance Data Systems sees FY2019 adjusted EPS of USD$22.0bn while consensus was for USD$24.4bn. Alliance Data Systems is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Anadarko Petroleum (APC) reported fourth quarter EPS of USD$0.38 missing consensus of USD$0.63.  Anadarko Petroleum fourth quarter revenue came at USD$339.5 million, matching consensus of USD$341.8 million.  Anadarko Petroleum is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Broadridge Financial Solutions (BR) announced FY2Q2019 adjusted EPS of USD$0.56 while consensus was for USD$0.71. Broadridge Financial Solutions reported revenue of USD$953.4mm in FY2Q2019 while analysts expected USD$967.6mm. Broadridge Financial Solutions sees FY2019 adjusted EPS growing by between 9% and 13%. Broadridge Financial Solutions 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.
  • Cardinal Health (CAH) announced FY2Q2019 adjusted EPS of USD$1.29, beating consensus of USD$1.09. Cardinal Health reported revenue of USD$7.74bn in FY2Q2019, surpassing consensus of USD$36.08bn. Cardinal Health sees FY2019 adjusted EPS between USD$4.97 and USD$2.17, the midpoint of which beats consensus of USD$5.01. Cardinal Health is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Chipotle (CMG) reported third quarter 2019 adjusted EPS of USD$1.72 beating consensus of USD$1.39.  Chipotle third quarter 2019 revenue came at USD$1.23 billion matching consensus of USD$1.19 billion.  Chipotle same store sales grew at 6.1%, well above consensus of 4.5%.  Chipotle is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • DTE Energy Co. (DTE) announced CY4Q2018 operating EPS of USD$0.91 while consensus was for USD$0.93. DTE Energy also reaffirmed its guidance for FY2019. DTE Energy is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Fiat Crysler (BIT: FCA) announced its FY2019 ebit guidance that is 7%-9% below analyst consensus. Automobile manufacturers such as Faurecia (ENXTPA: EO), Valeo (ENXTPA: FR), and Daimler (XTRA: DAI) are all trading lower on the weak guidance. Citigroup reiterated its sell recommendation for Fiat Chrysler and lowered its price target from 48 euros/share to 44 euros/share on the news. Fiat Chrysler is not rated in our Global Top Stock Ideas. Faurecia is rated “Top Short” in our European Large-Cap Global Top Stock Ideas. Valeo is rated “Top Short” in our European Large-Cap Global Top Stock Ideas. Daimler is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • GoPro (GPRO) reported fourth quarter adjusted EPS of USD$0.26, in line with consensus of USD$0.26. GoPro fourth quarter revenue came at USD$377 million beating consensus of USD$374 million by a touch.  GoPro is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Hanesbrands Inc. (HBI) announced CY4Q2018 adjusted EPS of USD$0.48 while consensus was for USD$0.46. Hanesbrands Inc. reported revenue of USD$1.77bn in CY4Q2018 while analysts expected USD$1.71bn. Hanesbrands Inc. sees FY2019 adjusted EPS of between USD$1.72 and USD$1.80, the midpoint of which misses analyst expectations of USD$1.80. Hanesbrands Inc. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Intercontinental Exchange (ICE) announced CY4Q2018 adjusted EPS of USD$0.94 while consensus was for USD$0.92. Intercontinental Exchange reported revenue of USD$1.31bn in CY4Q2018 while analysts expected USD$1.30bn. Intercontinental Exchange is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Kellogg Co. (K) announced CY4Q2018 comparable EPS of USD$0.91 while consensus was for USD$0.88. Kellogg Co. reported revenue of USD$3.32bn in CY4Q2018, matching consensus of USD$3.32bn. Kellogg Co. sees FY2019 revenue growing by between 3% and 4%. Kellogg Co. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Laboratory Corp. Of America (LH) announced CY4Q2018 adjusted EPS of USD$2.52, matching consensus of USD$2.52. Laboratory Corp. Of America reported revenue of USD$2.79bn in CY4Q2018, also matching consensus of USD$2.79bn. Laboratory Corp. Of America sees FY2019 adjusted EPS between USD$11.00 and USD$11.40, the midpoint of which is in line with consensus of USD$11.21. Laboratory Corp. Of America is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Marathon Petroleum Corp. (MPC) announced CY4Q2018 adjusted EPS of USD$1.35 missing consensus of USD$1.96. Marathon Petroleum Corp. reported revenue of USD$32.54 billion in CY4Q2018 while analysts expected USD$32.68 billion.  Marathon Petroleum Corp. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Masco Corp. (MAS) announced CY4Q2018 adjusted EPS of USD$0.64 while consensus was for USD$0.56. Masco Corp. reported revenue of USD$2.04bn in CY4Q2018 while analysts expected USD$2.01bn. Masco Corp. sees FY2019 adjusted EPS of between USD$2.60 and USD$2.80, the midpoint of which is in line with consensus of USD$2.71. Masco Corp. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Prudential Financial (PRU) reported fourth quarter adjusted operating EPS of USD$2.44 missing consensus of USD$2.78. Prudential Financial fourth quarter assets under management came at USD$1.38 trillion, matching consensus.  Prudential Financial hiked its quarterly dividend to USD$1, above 95 cents consensus.  Prudential Financial is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • S&P Global (SPGI) announced CY4Q2018 adjusted EPS of USD$2.22 while consensus was for USD$2.20. S&P Global reported revenue of USD$1.54bn in CY4Q2018 while analysts expected USD$1.60bv. S&P Global sees FY2019 adjusted EPS of between USD$8.95 and USD$9.15, missing consensus of USD$9.20. S&P Global is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Sealed Air Corp. (SEE) announced CY4Q2018 adjusted EPS of USD$0.75 while consensus was for USD$0.67. Sealed Air Corp. reported revenue of USD$1.26bn in CY4Q2018 while analysts expected USD$1.25bn. Sealed Air Corp. sees FY2019 adjusted EPS of between USD$2.65 and USD$2.75 the midpoint of which slightly misses consensus of USD$2.74. Sealed Air Corp. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Sun Trust Bank (STI) and BB&T (BBT) announced they are merging in an all stock deal.  The merger will be a USD$66 billion deal that will create the 6th largest bank in the US.  The banks said in a joint statement that the merger will deliver USD$1.6 billion in annual cost savings by 2022.  The banks are merging as equals.  Sun Trust is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  BB&T is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • Twitter Inc. (TWTR) shares slid after reporting CY1Q2019 revenue guidance between USD$715mm and USD$775mm, the midpoint of which misses consensus of USD$766.1mm. Twitter announced CY4Q2018 adjusted EPS of USD$0.31 while consensus was for USD$0.25. Twitter Inc. reported revenue of USD$909.0mm in CY4Q2018 while analysts expected USD$866.7mm. Twitter also announced that it would stop reporting monthly active users (MAU). Twitter Inc. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Tyson Foods (TSN) announced FY1Q2019 adjusted EPS of USD$1.58 while consensus was for USD$1.56. Tyson Foods reported revenue of USD$10.19bn in FY1Q2019 while analysts expected USD$10.37bn. Tyson Foods sees FY2019 revenue between USD$43.00bn and USD$42.69bn, in line with analyst expectations. Tyson Foods is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Vestas Wind Systems (CPSE: VWS) announced FY2019 guidance that mostly beat analyst estimates. Vestas Wind Systems told analysts that it sees FY2019 revenue between 10.75bn euros and 12.25bn euros, the midpoint of which is 3.2% above consensus of 11.14bn euros. Vestas Wind Systems also said that it expects an ebit margin of between 8% and 10% for the upcoming fiscal year. Vestas Wind Systems is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.  
  • Wirecard AG (XTRA: WDI) shares tanked as much as 20% on Thursday after a new report indicates that two of the company’s senior executives knew of alleged accounting fraud practices. The report highlights two officials at the company’s Munich headquarters who were aware of a, “round-tripping,” scheme in Singapore that potentially led to book-padding in the company’s Asia businesses. Wirecard has since responded to the allegations, writing in an emailed that, “nothing about the article published today is true.” Wirecard is rated “Attractive” in our European Large-Cap Global Top Stock Ideas. 
  • WR Grace (GRA) announced fourth quarter adjusted EPS of USD$1.14 while consensus was for USD$1.04. WR Grace reported revenue of USD$520 million in the fourth quarter while analysts expected USD$498 million. WR Grace is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Yum! Brands Inc. (YUM) announced CY4Q2018 adjusted EPS of USD$0.40, largely missing consensus of USD$0.97. Yum! Brands Inc. reported revenue of USD$1.56bn in CY4Q2018 while analysts expected USD$1.59bn. Yum! Brands Inc. Observed worldwide comparable sales growth of 3.0% in CY4Q2018 while consensus was for 2.5%. Yum! Brands Inc. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1351
  • GBP£ is currently up +0.278% against the USD$ to 1.2968
  • CHF is currently little changed against the USD$ at 0.9986

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -4.7 basis points to 0.115%
  • German 10-Year Bunds are higher with yields down -4.7 basis points to 0.115%
  • French 10-Year Government Bonds are higher with yields down -2.6 basis points to 0.551%
  • UK 10-Year GILTs are higher with yields down -3.9 basis points to 1.177%
  • Italian 10-Year Government Bonds are lower with yields up 9.1 basis points to 2.951%
  • Spanish 10-Year Government Bonds are higher with yields down -1.5 basis points to 1.242%

 

Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.
Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.

Euro Stoxx 50 Movers

In local currency.
On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Unilever NV Information Technology 48.4 0.11%               4,834,060
Iberdrola SA Consumer Staples 7.24 -0.06%            10,247,951
Unibail-Rodamco-Westfield Telecommunication Services 152 -0.28%                  451,093
Koninklijke Philips NV Financials 33.8 -0.30%               2,989,005
L'Oreal SA Health Care 216 -0.51%                  585,357
 
Underperformers Sector Price 1D % Chg Volume
Societe Generale SA Energy 24.7 -6.77%            12,251,608
Daimler AG Consumer Staples 49.2 -5.25%               7,192,333
Volkswagen AG Consumer Staples 142 -4.74%               1,726,239
BASF SE Utilities 63.2 -4.09%               3,992,665
Bayerische Motoren Werke AG Utilities 71.2 -3.30%               2,602,996
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS