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Global Stocks Trending in the News for February 28th, 2019

Feb 28, 2019

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Global Consumer Stocks Trending in the News

  • Anheuser-Busch Inbev (BUD, ENXTBR:ABI) reported fourth quarter adjusted EPS of USD$0.80 missing consensus of USD$1.00.  Anheuser-Busch Inbev reported fourth quarter adjusted ebitda growth of 10% (6.5% was expected) with USD$6.17 billion, above consensus of USD$6.05 billion.  Anheuser-Busch Inbev  sees   Anheuser-Busch Inbev is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Aston Martin Lagonda Global Holdings Plc (LSE: AML) shares tanked after the company announced CY4Q2018 financials and missed production targets, leading investors to doubt its October IPO valuation. CEO Andy Palmer discussed that Aston Martin’s IPO valuation was based on plans to double output to 14,000 vehicles by FY2023, but the company will not be able to notably lift production until a new plant begins deliveries next year. Aston Martin is rated “Neutral” in our United Kingdom All-Cap 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.
  • Best Buy Co. (BBY) shares soared by double-digits after the technology retailer announced stronger-than-expected CY4Q2018 financial results, citing battle royale video game Fortnite as a sales driver. Best Buy reported comparable sales growth of 3.0% for CY4Q2018, beating the average analyst estimate for 1.8% growth. Best Buy also announced a new USD$3bn share buyback plan. Best Buy is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Booking Holdings (BKNG) reported fourth quarter adjusted EPS of USD$22.49 beating consensus of USD$19.39.  Booking Holdings reported fourth quarter adjusted ebitda of USD$1.26 billion in line with consensus of USD$1.22 billion.  Gross travel bookings grew 9% in the quarter.  Booking Holdings gave first quarter EPS guidance of USD$10.90-11.20.  Booking Holdings is rated “Top buy” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Carrefour SA (ENXTPA: CA) shares traded higher after the company told investors it will begin to deepen some cost-cutting measures and lessen its retail store sales space in a move to address the trend towards e-commerce. Overall, Carrefour plans to decrease store sales space by about 10% and to trim its annual cost by 2.8bn euros by 2020 (USD$3.2mm) -- Carrefour’s initial cost cutting plan was to reduce costs by 2bn euros by 2020. Carrefour is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Cars.com Inc. (CARS) shares moved slightly higher after it announced CY4Q2018 EPS of USD$0.50, missing the lowest analyst estimates that ranged between USD$0.51 and USD$0.65. Cars.com also told analysts that it expects revenue growth between -5% and 2% and an adjusted Ebitda margin between 30% and 31% in FY2019. Cars.com is rated “Neutral” in our US SMID-Cap and “Neutral” in our US Information Technology 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.
  • JC Penney Co. Inc. (JCP) shares soared after the retailer announced adjusted EPS of USD$0.18 in CY4Q2018, dwarfing analyst expectations of USD$0.10. JC Penney’s net sales of USD$3.67bn in CY4Q2018 slightly missed consensus for USD$3.71bn. JC Penney is rated “Unattractive” in our US SMID-Cap and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas.
  • Keurig Dr. Pepper Inc. (KDP) shares fell after the company announced CY4Q2018 sales that and FY2019 EPS were slightly below analyst expectations. Keurig Dr. Pepper generated net sales of USD$2.81bn in CY4Q2018, slightly below consensus of USD$2.84bn. Keurig Dr. Pepper told analysts that it expects FY2019 adjusted EPS of between USD$1.20 and USD$1.22, missing consensus of USD$1.23. Keurig Dr. Pepper is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.
  • L Brands (LB) reported fourth quarter 2019 adjusted EPS of USD$2.14 beating consensus of USD$2.08.  L Brands reported fourth quarter 2019 adjusted revenue of USD$4.85 billion in line with consensus of USD$4.92 billion.  Lowe’s gave EPS gave for the first quarter of USD$2.20-2.60  L Brands is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • LKQ Corp. (LKQ) reported fourth quarter adjusted EPS of USD$0.48 in line with consensus of USD$0.49.  LKQ reported fourth quarter revenue of USD$3.0 billion in line with consensus of USD$3.02 billion.  LKQ gave 2019 EPS guidance of USD$2.34-2.46  LKQ is rated “Unattractive” in our US Large-Cap and “Neutral” 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.
  • 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.
  • Pirelli SpA (BIT: PIRC) shares fell notably lower after China National Chemical Engineering Corporation (SEHK: 601117) said it is considering reducing its stake in the Italian tiremaker. China National Chemical Engineering is considering several options for its stake in Pirelli, including a block sale or a sale directly to an investor. China National Chemical Engineering’s current stake in Pirelli is worth about 2.1bn euros (USD$2.4bn) as of Tuesday’s closing price. Pirelli is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas. China National Chemical Engineering is not rated in our Global Top Stock Ideas.  
  • SeaWorld (SEAS) reported fourth quarter adjusted loss of USD$0.13 per share matching consensus.  SeaWorld reported fourth quarter adjusted revenue of USD$280 million in line with consensus of USD$275.5 million.  Attendance grew 8% in the quarter.  SeaWorld upped its share buyback program by USD$158 million.  SeaWorld is rated “Neutral” in our US Large-Cap Global 
  • Square (SQ) reported fourth quarter adjusted EPS of USD$0.14 matching consensus of USD$0.14.  Square reported fourth quarter adjusted revenue of USD$2.22 billion in line with consensus of USD$2.26 billion.  Square gave second quarter EPS guidance of USD$0.06-0.08, well below 11.5 cents per share consensus.  Square is rated “Top Short” in our US Large-Cap and “Neutral” in our US Information Technology 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.
  • 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.
  • TJX Companies (TJX) shares moved higher after the discount retailer announced positive CY4Q2018 financial results, driven by a strong holiday season, and a planned stock buyback. TJX Companies reported comparable same-store sales growth of 6.0% for CY4Q2018, blowing past consensus of 3.5%. TJX Companies also plans to buyback as much as USD$2.25bn in FY2019. TJX Companies is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Unilever (LSE: ULVR) shares slipped after Exane BNB Paribas downgraded its recommendation for company shares from outperform to neutral. Unilever also cut its price target for Unilever from 54 euros/share to 52 euros/share, implying a 9.2% upside from Tuesday’s closing price -- Unilever maintains an average price target of 50.72 euros/share across 32 analyst forecasts. Unilever is rated “Neutral” in our United Kingdom All-Cap 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.
  • Zalando (XTRA:ZAL) said it is giving itself 5 years to become the same size as H&M (OM:HM B).  It seeks to grow over 3 times its revenue during that time targeting 20 billion euros in revenue with profitability greater than H&M.  Zalando reported strong fourth quarter sales posting 25% sales growth.  Zalando is rated “Neutral” in our European Large-Cap 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.
  • HP Inc (HPQ) reported first quarter 2019 adjusted EPS of USD$0.52 matching consensus of USD$0.52.  HP Inc reported first quarter 2019 adjusted revenue of USD$14.7 billion missing consensus of USD$14.9 billion.  HP Inc gave second quarter EPS guidance of 50-53 cents per share.  HP Inc is rated “Top buy” in our US Large-Cap and “Top Buy” in our US 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.
  • Square (SQ) reported fourth quarter adjusted EPS of USD$0.14 matching consensus of USD$0.14.  Square reported fourth quarter adjusted revenue of USD$2.22 billion in line with consensus of USD$2.26 billion.  Square gave first quarter EPS guidance of USD$0.06-0.08, well below 11.5 cents per share consensus.  Square is rated “Top Short” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Versum Materials (VSM) intends to move forward with a planned merger between itself and Entegris Inc. (ENTG) despite a USD$5.9bn acquisition offer by German conglomerate Merck (MRK) that aimed to break up the merger. Merck’s acquisition offer equates to a USD$48/share offering, implying a 16% premium to Tuesday’s closing price.  Versum is rated “Top Buy” in our US SMID-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas. Entegris is rated “Attractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas. Merck is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. 

Global Industrials Stocks Trending in the News

  • Airbus (ENXTPA:AIR) has offered to build its newest jet, the A330Neo, in the country in exchanges for orders for the place from China.  Airbus presently build A320 jets in the country at a plant in Tianjin.  China is expected to be the largest market for jets over the next 20 years with 8,000 jets worth USD$1.2 trillion to be bought.  Airbus previously offered to build the A380 in China but that never came to fruition.  Airbus is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Dycom Industries Inc. (DY) shares tanked after the company announced guidance for CY1Q2019 that missed the lowest analyst estimate. “The biggest issued continues to be gross margin pressure, both in the reported and in DY’s guidance,” said Wells Fargo analyst Jennifer Fritzsche. Fritzsche did highlight, however, that Dycom’s CY4Q2018 financial results did show accelerated organic revenue growth. Dycom Industries is rated “Unattractive” in our US Large-Cap and “Top Short” in our US Industrials Global Top Stock Ideas.  
  • Kuehne + Nagel International AG (SWX: KNIN) shares fell the most in more than a year after the company reported a CY4Q2018 profit miss and disappointed investors with FY2019 guidance. Kuehne + Nagel reported CY4Q2018 Ebit that was about 7% below the average analyst estimate. Kuehne + Nagel also pulled back its FY2019 guidance as the company, “seemingly failed to appreciate the degree of market slowdown,” said RBC. Kuehne + Nagel is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Nielsen Holdings Plc (NLSN) announced CY4Q2018 financials slightly better than consensus and FY2019 guidance that edged past expectations. Nielsen Holdings reported an adjusted EPS of USD$0.51 in CY4Q2018, beating consensus of USD$0.49. Nielsen Holdings told analysts that it sees FY2019 adjusted EPS between USD$1.63 and USD$1.66, the midpoint of which is slightly better than consensus of USD$1.68. Nielsen Holdings is rated not rated in our Global Top Stock Ideas.
  • Rolls-Royce Holdings (LSE: RR.) shares fell after the jet engine maker missed its delivery targets, booked 1.3bn pounds in charges, and withdrew a bit to power a new aircraft platform. Rolls-Royce missed production targets and cited testing issues, supplier issues, and incurred costs from job cuts as reasoning. Rolls-Royce also existed Boeing’s New Midsize Aircraft project, explaining that its new engine technology will not be ready for the 2025 deadline. Rolls-Royce is rated “Unattractive” 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 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.

Global Commodities & Energy Stocks Trending in the News

  • Engie SA (ENXTPA: ENGI) shares fell notably lower after the company announced a 3-year earnings plan that missed analyst consensus. Engie told investors that it plans to grow net recurring income by between 7% per annum and 9% per annum until 2021, which RBC Capital Markets analyst Olly Jeffery said was, “a disappointment.” Engie is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • GCP Applied Technologies (GCP) shares spiked after the company told investors that it is reviewing all options, including a possible sale of the company. Additionally, GCP Applied Technologies is restructuring its global supply chain strategy. GCP Applied Technologies is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.  

Global Healthcare Stocks Trending in the News

  • Akorn Inc. (AKRX) shares slipped lower after the company announced Cy4Q2018 net revenue of USD$153.4mm that missed consensus of USD$164.7mm. Akorn told analysts on its conference call that it will focus on rebuilding shareholder value and move forward following its terminated merger agreement with Fresenius Kabi AG (MUN: FKB). Akorn is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas. Fresenius Kabi is rated not rated in our Global Top Stock Ideas.
  • 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.
  • Mylan (MYL) shares dove the most in 3 years after the generic drug maker offered FY2019 guidance that missed the average analyst estimate. As a result of the disappointing guidance, Bernstein downgraded Mylan shares, further driving the selloff. Analysts are also highlighting that Mylan continues to face manufacturing issues. Mylan is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • Solvay SA (ENXTBR: SOLB) shares fell after the Belgian chemical maker announced FY2019 financial guidance that indicates modest growth, most of which will be in the second-half of the year. CEO Jean-Pierre Clamadieu also noted that the end of Solvay's A380 program will not be a big loss due to ramp ups in other aircraft programs, which include A320 and A220 programs. Solvay is rated “Neutral” in our European SMID-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