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Global Stocks Trending in the News for February 27th, 2019

Feb 27, 2019

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Global Consumer Stocks Trending in the News

  • AutoZone (AZO) reported second quarter 2019 quarter adjusted EPS of USD$11.49 which is not comparable with consensus of USD$9.80.  AutoZone reported second quarter 2019 adjusted revenue of USD$2.45 billion matching consensus of USD$2.45 billion.  AutoZone reported fourth quarter same store sales growth of 2.6% beating consensus of 2.1%.  AutoZone is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Beiersdorf AG (XTRA: BEI) shares slumped to a 2-year low after the company announced a profit warning for FY2019. Beiersdorf cut its FY2019 margin guidance while telling investors that the company plans to invest more to reach growth targets. The profit warning triggered a slew of analyst downgrades for Beiersdorf stock. Beiersdorf is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • eBay (EBAY) and its activist shareholders are nearing an agreement to give them board seats at eBay.  Elliott Management and Starboard Value LP would.  The deal being described in the press would see the funds receive multiple board seats and have eBay perform an operational and strategic review of the company.  The review could include considering breaking up the company to maximize profitability.  eBay is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Home Depot (HD) reported fourth quarter adjusted EPS of USD$2.22 beating consensus of USD$2.16.  Home Depot reported fourth quarter adjusted revenue of USD$26.49 billion in line with consensus of USD$26.58 billion.  Home Depot reported fourth quarter same store sales growth of 3.2% while consensus was for a 4.5% rise.  Home Depot gave same store sales growth guidance in 2019 of 5% with revenue growth of 3.3%.  Home Depot is rated “Unattractive” in our Large-Cap and “Neutral” in our Consumer Discretionary Global Top Stock Ideas.  Home Depot is rated “Attractive” in our Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Lowe’s (LOW) reported fourth quarter adjusted EPS of USD$0.80 beating consensus of USD$0.79.  Lowe’s reported fourth quarter adjusted revenue of USD$15.65 billion in line with consensus of USD$15.74 billion.  Lowe’s CEO said he is happy with the quarter with the company reaping the benefits of much of its hard work over the past 6 months.  Lowe’s is rated “Unattractive” in our Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Macy’s (M) reported fourth quarter EPS of USD$2.73 well above consensus of USD$2.53.  Macy’s reported fourth quarter adjusted sales of USD$8.46 billion in line with consensus of USD$8.45 billion.  Macy’s reported fourth quarter same store sales growth of 0.7% below consensus of 0.9%.  Macy’s gave 2019 EPS guidance of USD$3.05-3.25.  Macy’s announced a management streamline effort to improve efficiency.  Macy’s is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Papa John’s Pizza (PZZA) reported fourth quarter loss of USD$0.44 per share missing consensus of EPS of USD$0.18.  Papa John’s Pizza reported fourth quarter adjusted revenue of USD$374 million missing consensus of USD$393.2 million.  Papa John’s Pizza gave same store sales guidance of -1% to -5%.  Papa John’s Pizza is rated “Top Short” in our Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Shake Shack (SHAK) reported fourth quarter adjusted EPS of USD$0.06 beating consensus of USD$0.03.  Shake Shack reported fourth quarter adjusted revenue of USD$124.3 million beating consensus of USD$119.2 million.  Shake Shack reported fourth quarter same store sales growth of 2.3% while consensus was for a drop of 1.2%.  Shake Shack is rated “Unattractive” in our Large-Cap and “Neutral” in our Consumer Discretionary Global Top Stock Ideas.
  • Ted Baker (LSE:TED) updated guidance for its fiscal year that is about to end January 26th, saying pretax profit will be about 63 million pounds, below the 74 million pounds consensus.  Ted Baker said currency movements and other factors weighed on its performance.  Ted Baker is in the middle of an investigation of alleged sexual misconduct by its founder, but this warning was related to inventory and product costs.  Ted Baker is not rated in our Global Top Stock Ideas.
  • The J. M. Smucker Company (SJM) reported third quarter 2019 adjusted EPS of USD2.26 beating consensus of USD$2.01.  J. M. Smucker reported third quarter adjusted revenue of USD$2.01 billion matching consensus of USD$1.99 billion.  J. M. Smucker gave full year 2019 EPS guidance of USD$8.00-8.20 while present consensus is USD$8.01.  J. M. Smucker is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • Toll Brothers (TOL) reported fourth quarter adjusted EPS of USD$0.76 beating consensus of USD$0.61.  Toll Brothers reported fourth quarter adjusted revenue of USD$1.36 billion beating consensus of USD$1.26 billion.  Toll Brothers gave second quarter delivery guidance of 1,650 to 1,850 homes.  Toll Brothers backlog stands at USD$5.37 billion.  Toll Brothers is rated “Unattractive” in our Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Tesla (TSLA) CEO Elon Musk should be held in contempt of court, according to the Securities and Exchange Commission (SEC).  The SEC has asked a judge to hold Mr. Musk in contempt for tweets he recently sent that the SEC claims breached the agreement he has signed.  The tweet in questions said Tesla would reach production of 500,000 cars in 2019, a tweet that was quickly corrected to say daily production at the annual rate of 500,000 cars.  The tweet was not approved beforehand, violating the agreement with the SEC.  Tesla is rated “Top Short” in our Large-Cap and “Neutral” in our Consumer Discretionary Global Top Stock Ideas. 
  • Vitamin Shoppe (VSI) reported fourth quarter adjusted loss of 19 cents per share beating consensus of 25 cents loss per share.  Vitamin Shoppe reported fourth quarter adjusted revenue of USD$248.5 million missing consensus of USD$254.5 million with same store sales dropping 5.4% in the quarter.  Vitamin Shoppe expects to close 60-80 stores in 2019.  Vitamin Shoppe is rated “Unattractive” in our SMID-Cap and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas
  • Walmart (WMT) wants to become a bigger player in online advertising.  Walmart is bringing its advertising business in-house after a third-party contract is set to expire soon.  Walmart is looking to build additional sources of revenue and sees advertising as a promising avenue.   Walmart will offer its deep customer activity database to help advertisers target their ads.  Walmart is rated “Attractive” in our Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Weight Watchers (WTW) reported fourth quarter adjusted EPS of USD$0.63 beating consensus of USD$0.60.  Weight Watchers reported fourth quarter adjusted revenue of USD$330 million missing consensus of USD$346.4 million.  Weight Watchers gave 2019 EPS guidance of USD$1.25-1.50.  Weight Watchers is rated “Neutral” in our Large-Cap and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Wynn Resorts (WYNN) has been fined USD$20 million over sexual misconduct complaints by the Nevada Gaming Authority.  Wynn’s CEO was accused of multiple assaults on employees, allegations that were first reported in the Wall Street Journal.  Wynn will not lose its gaming license as part of the fine and the fine closes the matter for the state of Nevada.  Wynn Resorts is rated “Top Short” in our Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Adyen (ENXTAM:ADYEN) reported second half 2018 adjusted ebitda of 111.7 million euros beating consensus of 88.6 million euros.  Adyen reported fourth quarter adjusted revenue of 192.5 million euros beating consensus of 182.9 million euros.  Adyen saw 60% revenue growth in the second half, well above the 40% guidance given at the start of the year.  Adyen gave revenue growth guidance of mid-twenties to mid-thirties for the coming years.  Adyen is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Aixtron SE (DB: AIXA) shares fell after the company reported a revenue forecast for FY2019 that was 1.1% below the average analyst estimate. Aixtron expects revenue between 260mm euros and 290mm euros in FY2019 while analyst consensus was for 278.1mm euros. For CY4Q2018, Aixtron generated revenue of 87.9mm euros, surpassing consensus of 81.9mm euros. Aixtron is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.
  • Apple (AAPL) will reportedly include a sleep monitor feature on its next Apple Watch.  Apple is presently testing the feature at its headquarters in California.  If testing goes as planned the feature will be added to the Apple Watch in 2020.  The feature will give Apple the ability to better compete with other wearable health devices.  Apple is rated “Neutral” in our Large-Cap and “Neutral” in our Information Technology Global Top Stock Ideas.
  • ITV Plc (LSE: ITV) shares slipped after the company reported lower than expected advertising revenue. ITV attributed slumping advertising revenue to Brexit and companies bracing for the event. “Most people in Britain in business thought there would be a withdrawal agreement by now,” said CEO Carolyn McCall, adding, “I’m afraid companies have to look at their bottom line and be more cautious,”. ITV Plc is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Sykes Enterprises (SYKE) reported fourth quarter adjusted EPS of USD$0.58 missing consensus of USD$0.66.  Sykes Enterprises reported fourth quarter adjusted revenue of USD$415.2 million missing consensus of USD$417.5 million.  Sykes Enterprises gave first quarter 2019 revenue guidance of USD$403-408 million, below present consensus of USD$.  Sykes Enterprises is rated “Attractive” in our SMID-Cap and “Neutral” in our Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Hertz (HTZ) reported fourth quarter loss of 53 cents per share beating consensus of an 82 cents per share loss.  Hertz reported fourth quarter adjusted revenue of USD$2.3 billion beating consensus of USD$2.1 billion.  Hertz posted 10 % revenue growth in the fourth quarter.  Hertz is rated “Unattractive” in our Large-Cap and “Unattractive” in our Industrials Global Top Stock Ideas.
  • Travis Perkins (LSE: TPK) shares rose the most intraday since 2009 after the company announced FY2018 pretax profit of 348mm pounds, notably beating the consensus estimate of 327mm pounds. Travis Perkins generated y/y revenue of 6.9% for CY4Q2018 and 4.9% revenue growth for the full year. Travis Perkins is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.

 

 

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Global Financials Stocks Trending in the News

  • ABN Amro (ENXTAM: ABN) took investors by surprise after it quietly purchased 680mm euros (USD$775mm) worth of Air France-KLM (ENXTPA: AF) shares over just 5 trading sessions. Over the period that ABN Amro accumulated Air France shares, the latter’s stock appreciated 23%. State-controlled ABN Amro began to purchase Air France shares on behalf of the Dutch government on February 20th. ABN Amro is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Air France is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Bank of America (BAC) announced it will drop the Merrill Lynch name from its investment bank.  Bank of America acquired Merrill Lynch at the height of the financial crisis and has told employees it will remove  “Merrill Lynch” from the investment bank completely and rebrand its wealth management unit businesses with the “Merrill” name.  An era has ended.  Bank of America is rated “Attractive” in our SMID-Cap Global Top Stock Ideas.
  • Bank of East Asia (SEHK: 23) shares fell the most in 6 months after the company declared a smaller-than-expected special dividend payment in its FY2018 annual report. Bank of East Asia shares rallied leading up to the special dividend declaration on rumors that the bank would announce a big special dividend for its 100-year anniversary. Bank of East Asia is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Metro Bank Plc (LSE: MTRO) shares plummeted to a record low after the lender disclosed that British regulators are probing how the company misclassified assets. The UK Financial Conduct Authority and Prudential Regulation Authority will, “investigate the circumstances and events,” that led Metro Bank to adjust the risk-weightings of its assets last month. Metro Bank is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Standard Chartered Plc (LSE: STAN) CFO Andy Halford confirmed in an interview that the bank will push forward with plans to create two new hubs for its Asian operations in Singapore and Hong Kong. Halford discussed that the move will save Standard Chartered in the “low” hundreds of millions of dollars in costs. Standard Chartered is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • BASF (DB:BAS) reported fourth quarter ebitda of 630 million euros well above consensus of 552 million euros.  BASF reported fourth quarter adjusted revenue of 15.6 billion euros beating consensus of 14.6 billion euros.  BASF gave 2019 revenue and ebitda growth guidance of “slightly higher”.  BASF is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • BP (LSE:BP) announced it has started production at its new Angelin Project in Trinidad and Tobago.  The natural gas project sits 60km off the coast and came in under budget and ahead of schedule.  The platform has a capacity of 600mm scfd .  BP is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Fresnillo PLC (LSE: FRES) shares fell by double-digits after the company reported CY2H2018 revenue that missed consensus due to lower revenue and higher costs. Fresnillo’s costs increased 14% y/y in CY2H2018 while its Ebitda came 9% below consensus. Citi noted that Fresnillo’s EPS was offset by a lower tax rate. Fresnillo is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • ITV Plc (LSE: ITV) shares slipped after the company reported lower than expected advertising revenue. ITV attributed slumping advertising revenue to Brexit and companies bracing for the event. “Most people in Britain in business thought there would be a withdrawal agreement by now,” said CEO Carolyn McCall, adding, “I’m afraid companies have to look at their bottom line and be more cautious,”. ITV Plc is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Bayer AG (DB: BAYN) shares edged slightly lower after the company reported CY4Q2018 adjusted Ebitda in line with the average analyst estimate. Bayer AG generated an adjusted Ebitda of 2.07bn euros in CY4Q2018 while analysts expected 2.04bn euros. Bayer also maintained FY2019 earnings guidance for 6.80 euros/share, which is slightly below consensus of 6.88 euros/share. Bayer AG is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Bayer (DB:BAYN) has proposed a dividend of 2.80 euros per share, below 2.84 euros consensus.  Additionally, during the opening day of the second Roundup trial in the US, the plaintiff’s attorney was threatened with sanctions for straying from the subject of the trial.  The judge threatened this during the attorney’s opening statement to the court.  Bayer is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.

 

 

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Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS