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Global Stocks Trending in the News for February 19th, 2019

Feb 19, 2019

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Global Consumer Stocks Trending in the News

  • Advanced Auto Parts (AAP) reported fourth quarter adjusted EPS of USD$1.17 beating consensus of USD$1.13.  Advanced Auto Parts reported fourth quarter sales of USD$2.11 billion matching consensus of USD$2.11 billion.  Advanced Auto Parts sales grew 3.4% in the fourth quarter.  Advanced Auto Parts is rated “Neutral” in our Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Caesars Entertainment (CZR) shares rose after a report in the Financial Times saying that the company’s board is open to a sale or merger.  The article went on to say the board is waiting for “right opportunity”.   Caesars Entertainment has been pushed by activist investor Carl Icahn to make a sale of the company.  Caesars Entertainment is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Danone (ENXTPA:BN) gave 2019 guidance for 3% sales growth with sales with full year operating income of 3.56 billion euros.  Danone expects recurring operating margin above 15%.  Danone expects EPS of 3.84 euros.  Danone is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Honda (TSE:7267) said it will close its factory in England which is being seen as a blow to Brexit.  Honda will close a factory located in Swindon, located about 80 miles outside of London.  The factory will close in 2021 and presently employs 3,500 workers.  Honda is rated “Top Buy” in our Japanese Large-Cap Global Top Stock Ideas.
  • Kia Motors (KOSE: A000270) shares were downgraded from buy to hold by KB Securities. KB Securities maintains a price target for Kia Motors shares of 40,000 won, implying a 12% upside from the stock’s last close. Kia Motors maintains an average price target of 36,695 won across 35 analyst estimates. Kia Motors is not rated in our Global Top Stock Ideas.
  • Mattel (MAT) gave guidance to investors on Friday that largely disappointed.  Mattel said sale for the coming year will be flat while ebitda will be USD$350-400 million.  Mattel was expected to build on the momentum of its surprise strong recent results but that did not materialize.  Mattel is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Newell Brands (NWL) reported fourth quarter normalized EPS of USD$0.70 beating consensus of USD$0.60.  Newell Brands reported fourth quarter revenue of USD$2.3bn just below consensus of USD$2.35bn.  Newell Brands is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Pepsi (PEP) reported fourth quarter adjusted EPS of USD$1.49 beating consensus of USD$1.49.  Pepsi reported fourth quarter total sales of USD$19.5bn matching consensus of USD$19.5bn.  Pepsi is making a strong cost-cutting push and expects USD$2.5bn in charges until 2023 resulting from the cost initiative.  15% of that will be for plants closures and USD$800mm will be in 2019.  Pepsi is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Walmart (WMT) reported fourth quarter adjusted EPS of USD$1.41 beating consensus of USD$1.34.  Walmart reported fourth quarter sales of USD$138.8 billion matching consensus of USD$138.6 billion.  Walmart sales grew 4.2% in the fourth quarter, well above 3.4% expected, with online sales up 43% with Walmart's redesigned website.  Walmart provided 2019 same store sales guidance of 2.5-3%.  Walmart is rated “Attractive” in our Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas

Global Information Technology and Communication Services Stocks Trending in the News

  • Applied Materials (AMAT) reported first quarter 2019 adjusted EPS of USD$0.81 beating consensus of USD$0.79. Applied Materials reported first quarter 2019 net revenue of USD$3.75bn matching consensus of USD$3.71bn.  Applied Materials gave second quarter guidance for revenue of USD$3.33-3.63bn.  Applied Materials is rated “Attractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Facebook (FB) and the US Federal Trade Commission are reportedly in talks to settle over privacy violations, according to people familiar with the matter. The settlement could result in a record-setting multi-billion dollar fine, according to the sources. Facebook is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Nvidia (NVDA) reported fourth quarter adjusted EPS of USD$0.80 beating consensus of USD$0.78.  Nvidia reported fourth quarter total sales of USD$2.21bn matching consensus of USD$2.2bn.  Nvidia gave 2019 revenue guidance growth of flat to slightly down, above consensus.  Nvidia is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • ProSiebenSat.1 Media SE (XTRA: PSM) shares slipped following reports that key executives are clashing with CEO Max Conze over the firm’s strategy. According to the report, CFO Jan Kemper will likely depart the German broadcaster shortly. Chief Commercial Officer Sabine Eckhardt also will not renew her contract at the end of 2019, according to the report. ProSiebenSat.1 Media is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.
  • Scout24 AG (XTRA: G24) shares popped after the company received a USD$5.5bn boost from two private equity groups to compete with Axel Springer SE (DB: SPR) and EBay Inc. (EBAY) for dominance in Europe. The USD$5.5bn increase sweetens an equity bid from private equity groups Hellman & Friedman and Blackstone Group LP to 46 euros/share, giving Scout24 an equity value of 4.9bn euros. Scout24 is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. Axel Springer is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. EBay is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Vivendi SA (ENXTPA: VIV) shares rose after the company said it will begin to select financial advisers for the partial sale of Universal Music Group. Vivendi also told investors that it will buy back as much as a quarter of its stock. Vivendi is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Air Canada (TSX: AC) said it is on track to hit C$250 million in cost savings by the end of 2019.  Total cost savings from the company’s efforted total C$220 million at the end of 2018.    Air Canada added that Canada’s new passenger-rights legislation will add to airlines’ costs and passenger fares, without giving specifics.  Air Canada is not rated on our Global Top Stock Ideas.
  • Deere & Co (DE) reported first quarter 2019 adjusted EPS of USD$1.54 missing consensus of USD$1.75. Applied Materials reported first quarter 2019 net revenue of USD$6.94bn matching consensus of USD$6.95bn.  Deere & Co. reaffirmed guidance for full-year net income of USD$3.6bn.  Deere & Co is rated “Attractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas
  • FedEx Corp. (FDX) surprised Wall Street analysts in announcing the resignation of David Bronczek, one of CEO Fred Smith’s top deputies. Raj Subramaniam will replace Bronczek as President and COO starting on March 1st. FedEx is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Industrial Global Top Stock Ideas. 
  • SiteOne Landscaping (SITE) reported fourth quarter adjusted loss per share of USD$0.01 beating consensus of a loss of USD$0.06.  SiteOne Landscaping reported fourth quarter revenue of USD$474.6 million matching consensus of USD$473.1 million.  SiteOne Landscaping saw total sales growth 14% with organic sales growth of 4%.  SiteOne Landscaping is rated “Unattractive” in our Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas. 
  • Wabco (WBC) reported fourth quarter adjusted EPS of USD$2.13 beating consensus of USD$1.98.  Wabco reported fourth quarter revenue of USD$911.6mm missing consensus of USD$2.35bn.  Wabco gave full-year EPS guidance of USD$7.60-8.10.  Wabco is not rated in our Global Top Stock Ideas.
  • Welbuilt (WBT) reported fourth quarter adjusted EPS of USD$0.18 beating consensus of USD$0.17.  Welbuilt reported fourth quarter revenue of USD$406.1 million missing consensus of USD$393.6 million.  Welbuilt gave 2019 EPS guidance of USD$0.71-0.81.  Welbuilt is rated “Attractive” in our SMID-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.
  • XPO Logistics Inc. (XPO) shares plunged after the company reduced its FY2019 profit forecast for the second time in 2019. XPO Logistics cited softer than expected customer demand in Europe and lost business from the company’s largest customer as reasoning for the profit forecast reduction. XPO Logistics is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas.  

 

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We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

Global Financials Stocks Trending in the News

  • Allianz (DB: ALV) saw significant outflows in the fourth quarter of 2018 with market volatility.  Allianz saw 31bn euros of outflows with 29bn of that exiting its Pimco unit.  For all of 2018, Allianz saw 51bn euros of outflows.  Allianz is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • China International Capital Corp. (SEHK: 3908) shares traded higher after Alibaba Group Holding Ltd. (BABA) increased its stake in the investment bank. Alibaba increased its stake in China International Capital Corp. by 117.1mm shares, or HK$1.8bn (USD$230mm). Alibaba’s stake in China International Capital Corp. is now 11.7%, nearly matching Tencent Holdings Limited’s (SEHK: 700) 12% stake in the investment bank. China International Capital Corp. is rated “Neutral” in our China All-Cap Global Top Stock Ideas. Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas. Tencent is rated “Attractive” in our China All-Cap Global Top Stock Ideas.
  • Hang Seng Bank Limited (SEHK: 11) announced FY2018 financials that broadly surpassed analyst expectations. Hang Seng Bank reported HK$24.21bn of net income in FY2018 while consensus was for HK$23.38bn. Hang Seng Bank also told investors that it expects Hong Kong GDP growth of 2.7% in 2019, down from the expected 3.3% growth in 2018. Hang Seng Bank is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • HSBC Holdings Plc (LSE: HSBA) shares dipped after missing CY4Q2018 consensus and warning investors that rising political tensions have made the outlook for 2019 far less predictable. HSBC Holdings chairman Mark Tucker said on a conference call, “There are more risks to global economic growth than this time last year, and we remain alive and responsive to all possibilities.” HSBC Holdings reported adjusted pretax profit of USD$3.39bn in CY4Q2018 while analysts expected USD$4.40bn. HSBC Holdings is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Moody's Corp (MCO) announced CY4Q2018 adjusted EPS of USD$1.63 while consensus was for USD$1.69. Moody's Corp reported net sales of USD$1.06bn in CY4Q2018 while analysts expected USD$1.13bn. Moody's Corp sees FY2019 adjusted EPS between USD$7.85 and USD$8.10, in line with consensus of USD$7.82. Moody's Corp is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • Plus500 Ltd. (LSE: PLUS) shares tanked after the Times of London said a USD$103mm loss for 2017 in the company's Tuesday statement was not previously show in the firm’s annual report. Plus500 has responded, saying the error was a “typo”. Plus500 is rated “Neutral” in our European SMID-Cap and “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • Standard Life Aberdeen Plc (LSE: SLA) shares fell after Mitsubishi UFJ Financial Group Inc. (TCK) sold its entire stake in the company. Mitsubishi's stake was worth about 349.3mm pounds, or USD$447mm. Standard Life is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Idea

Global Commodities & Power Stocks Trending in the News

  • Drax Group plc (LSE: DRX) shares fell after Citi said that the power plant operator’s share price does not account for capacity market risks or the possible impact of a review of the UK retail energy market. Citi slashed its recommendation for Drax from neutral to sell while also noting that shares remain elevated despite falling commodity prices. Drax is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Sage Therapeutics (SAGE) reported fourth quarter adjusted loss per share of USD$3.83 missing consensus of a loss of USD$2.97.  Sage Therapeutics reported fourth quarter total expenses of USD$164.5 million.  Sage Therapeutics sees funding in place until second half of 2020.  Sage Therapeutics is rated “Top Short” in our Large-Cap Global Top Stock Ideas.
  • Straumann Holding AG (SWX: STMN) announced CY4Q2018 financials containing its strongest earnings growth since 2005. Straumann reported organic y/y earnings growth of 21.6% while consensus was for 16.8%. Daniel Buchta, an analyst with Vontobel, wrote in a note to clients that Straumann could produce double-digit organic growth for at least the next 5 years. Straumann is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.

 

 

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