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Global Stocks Trending in the News for February 20th, 2019

Feb 20, 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
  • 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.
  • Herbalife Nutrition (HLF) reported fourth quarter adjusted EPS of USD$0.63 beating consensus of USD$0.60.  Herbalife Nutrition reported fourth quarter sales of USD$1.19 billion matching consensus of USD$1.19 billion.  Herbalife Nutrition is not rated in our 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.
  • J Sainsbury PLC (LSE: SBRY) shares tanked on reports that the UK supermarket chain’s prospective merger with Walmart’s (WMT) Asda is near collapse. Reports cite that antitrust regulators are requiring harsher-than-expected conditions for the prospective merger to be approved. Sainsbury is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas. Walmart is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Staples 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.
  • Lululemon (LULU) was downgraded to by Nomura Instinet to neutral from buy.  Nomura Instinet made the downgrade based solely on valuation after the stock ran 24%.  The price target was hiked to USD$157 from USD$140 together with the rating drop.  Lululemon is rated “Attractive” in our Large-Cap 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

  • Analog Devices Inc. (ADI) announced FY1Q2019 adjusted EPS of USD$1.33 while consensus was for USD$1.28. Analog Devices Inc. reported net sales of USD$1.54bn in FY1Q2019 while analysts expected USD$1.51bn. Analog Devices Inc. sees FY2Q2019 adjusted EPS between USD$1.23 and USD$1.37. Analog Devices Inc.  is rated "Attractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Apple Inc. (AAPL) sales weakness in China is, “likely to continue beyond the short-term,” as they, “go beyond price points,” according to HSBC. HSBC also reaffirmed its hold rating for Apple and maintained its USD$160/share price target. HSBC cited an internal survey of Chinese customer preferences in explaining the expected weakness in China. Apple is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Gannett Co Inc. (GCI) reported CY4Q2018 adjusted EPS of USD$0.44, slightly missing expectations for USD$0.46. Gannett Co Inc. generated net sales of USD$751.4mm in CY4Q2018, missing consensus of USD$764.3mm. Gannett Co Inc. is rated "Attractive” in our US SMID-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Leidos Holdings Inc. (LDOS) shares slipped after Cowen wrote in a note to clients that, “investors may be neutral or possibly disappointed,” with the company’s financial results. Leidos reported CY4Q2018 financials that were in-line with consensus but, “lagged blowouts,” at Booz Allen Hamilton Holding Corporation (BAH) and Caci International (CACI). Leidos is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas. Booz Allen is rated “Attractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas. Caci International is rated “Neutral” in our US Large-Cap and “Attractive” 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.
  • Wix.com (WIX) shares fell sharply lower after the customized web developer projected FY2019 revenue and free cash flow that missed consensus expectations. Wix.com also projects just 550k net premium additions in FY2019, down from the 760k net premium additions in FY2018. Wix.com is not rated in our Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Air France (ENXTPA: AF) shares spiked after CEO Ben Smith struck a compromised with Pieter Elbers, easing a growing rift within the airline. Smith will back Elbers to remain as head of the airline’s Dutch arm, securing Elbers with a critical seat on the division's board. Air France is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Cathay Pacific Airways Ltd. (SEHK: 293) shares jumped after the company forecasted an end to its record two-year streak of losses. Cathay Pacific Airways told investors that it expects to report a profit for FY2018, driven by a strong year for its cargo business and growth from additional routes and seats. Cathay Pacific Airways is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Owens Corning (OC) reported CY4Q2018 adjusted EPS of USD$1.38 while analysts expected USD$1.26. Owens Corning generated net sales of USD$1.72bn in CY4Q2018, beating consensus of USD$1.68bn. Owens Corning is rated "Neutral” in our US Large-Cap and “Neutral” in our US Industrials 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. 
  • 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 edged higher after the company announced it will sell USD$1bn of bonds to refinance its debt. According to an official release, XPO Logistics will use the funds to repay borrowings under its pre-existing credit agreement. Last week, XPO Logistics cut its profit forecast for the second time in 2019. 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

  • The Blackstone Group LP (BX) shares traded higher after Targa Resources Corp. (TRGP) agreed to sell a 45% stake in its oil and natural gas pipeline and storage business to investment firms backed by the private equity company. According to CEO Joe Bob Perkins, the deal will provide Targa with a, “substantial portion of our estimated 2019 equity funding needs,” Blackstone is rated “Top Short” in our US Large-Cap Global Top Stock Ideas. Targa is rated “Top Short” in our US 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.
  • UBS Group AG (SWX: UBSG) will pay a fine worth 4.5bn euros, or USD$5.1bn, mandated by a French court that found the bank guilty of helping wealthy French clients stash funds in undeclared Swiss accounts.  The court accuses UBS of illegally providing French customers with banking services to hide assets from tax authorities. UBS is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • Devon Energy (DVN) reported fourth quarter core EPS of USD$0.10 well below consensus of USD$0.30.  Devon Energy will be separating its Canadian and Barnett assets and expects to complete that by the end of 2019.  Devon Energy increased its quarterly dividend to 9 cents per share from 8 cents and increased its share buyback program to USD$5 billion from USD$4 billion.  Devon Energy is rated “Neutral” in our Large-Cap Global Top Stock Ideas.
  • Diamondback Energy (FANG) reported fourth quarter adjusted EPS of USD$1.21 missing consensus of USD$1.58.  Diamondback Energy reported fourth quarter adjusted ebitda of USD456.5 million missing consensus of USD485.3 million.  Diamondback Energy saw production of 16,816 mboe/day in the fourth quarter.  Devon Energy is rated “Unattractive” in our Large-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Bausch Health Cos Inc. (BHC) reported CY4Q2018 adjusted EPS of USD$1.04 while analysts expected USD$0.84. Bausch Health Cos Inc. generated net sales of USD$2.12bn in CY4Q2018, beating consensus of USD$2.08bn. Bausch Health Cos Inc. expects FY2019 adjusted Ebitda between USD$3.35bn and USD$3.50bn, the midpoint of which is slightly above consensus of USD$3.39bn. Bausch Health Cos Inc. is not rated in our Global Top Stock Ideas.
  • CVS Health Corp. (CVS) shares slipped after the company announced FY2019 guidance that missed the lowest analyst estimates. CVS Health Corp. told investors that it expects adjusted EPS to come between USD$6.68 and USD$6.88 in FY2019 while analyst estimates ranged from USD$6.99 and USD$7.78. CVS Health Corp. Announced CY4Q2018 adjusted EPS of USD$2.14, beating consensus of USD$2.08. CVS Health Corp. is rated "Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Fresenius SE (DB: FRE) shares rose after the German health conglomerate promised investors that new deals and new drugs will accelerate growth, beginning next year. Fresenius also told investors that it will target 7% per annum sales growth and 9% per annum net income growth from 2020 to 2023. Fresenius is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Henry Schein Inc. (HSIC) announced CY4Q2018 adjusted EPS of USD$1.12 while consensus was for USD$1.11. Henry Schein Inc. reported net sales of USD$3.38bn in CY4Q2018 while analysts expected USD$3.46bn. Analysts expect Henry Schein Inc. to report an adjusted EPS of USD$0.96 in CY1Q2019. Henry Schein Inc. is rated "Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • 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 REITs Trending in the New

  • Targa Resources Corp. (TRGP) announced CY4Q2018 adjusted EPS of USD$0.35 while consensus was for a loss of USD$0.02. Targa Resources Corp. reported net sales of USD$2.60bn in CY4Q2018, missing consensus of USD$2.91bn. Targa Resources Corp. is rated "Top Short” in our US Large-Cap Global Top Stock Ideas. 
  • The Southern Co. (SO) reported CY4Q2018 adjusted EPS of USD$0.25 while analysts expected USD$0.23. The Southern Co. generated net sales of USD$5.34bn in CY4Q2018, beating consensus of USD$4.96bn. The Southern Co. is rated "Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Uniti Group Inc. (UNIT) shares tanked the most in its history alongside former parent company Windstream Holdings (WIN) after the latter lost a court battle, prompting Cowen and Raymond James to abandon their buy-equivalent ratings. The court ruling exposes Windstream, who is also Uniti’s largest customer, to potential cuts on its master lease agreements. Uniti is rated “Top Short” in our US 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