blog

Latest from the Quantamize Blog

European stocks post tepid gains with investors focused on positive US trade comments

Feb 28, 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 post small gains with investors focusing on positive words from US trade officials
  • Both US Treasury Secretary Steve Mnuchin and White House Economic Adviser Larry Kudlow gave optimistic outlooks when asked about trade negotiations with China  
  • The US abruptly ended talks with North Korea saying the country insisted on the end of all US sanctions; North Korea has denied that was the demand
  • The Euro Stoxx 600 closed up +0.06%, the FTSE 100 declined -0.46%, the DAX rose +0.25%, and the CAC 40 finished up +0.29%
  • According to Goldman Sachs, their best strategy this year has been a basket of stocks with the highest revenues exposure to Western Europe.  This basket is materially outperforming both the S&P 500 and the Russell 1000, in addition to the Euro Stoxx 600.
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.25x
  • Media (+1.38%), Financial Services (+0.91%), and Banks (+0.86%) stocks were the top performers in the Euro Stoxx 600 today
  • Basic Resources (-2.23%), Travel & Leisure (-0.69%), and Utilities (-0.43%) stocks were the worst performers in the Euro Stoxx 600 today
  • 83 stocks in the Euro Stoxx 600 hit 4-week highs while 45 stocks closed at 4-week lows
  • 57 stocks in the Euro Stoxx 600 finished the trading session overbought while 6 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed little changed -0.39 points today to 13.96 after closing at 14.35 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

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.
  • 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 Global Top Stock Ideas 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 Global Top Stock Ideas and “Neutral” 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 Global Top Stock Ideas and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas.
  • JD.com Inc. (JD) shares appreciated after the company posted CY4Q2018 revenue results ahead of analyst estimates, citing Singles’ Day promotions as a notable driver. JD.com’s sales in CY4Q2018 came in at 134.8bn yuan (USD$20.2bn), surpassing consensus of 132.5bn yuan. JD.com expects FY1Q2019 revenue of between 118bn yuan and 122bn yuan, the midpoint of which edges past consensus of 118.9bn yuan. JD.com is rated “Unattractive” in our China All-Cap 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 Global Top Stock Ideas 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.  L Brands gave EPS gave for the first quarter of USD$2.20-2.60  L Brands is rated “Top Short” in our US Large-Cap Global Top Stock Ideas 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 Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary 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 
  • 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 & Communication Services Stocks Trending in the News

  • 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 Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas
  • Inmarsat (LSE: ISAT) shares gained after a CTFN report indicates that EchoStar (SATS) may renew its interest in the former. The CTFN report cites an unnamed senior executive in the satellite sector. An original deal between the two companies fell apart in July 2018, spurring a 24% decline in Inmarsat’ stock since. Inmarsat is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. EchoStar is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Liberty Global Plc (LBTY.A), the cable company owned by billionaire John Malone, will sell its struggling Swiss business unit to Sunrise Communications Group AG (SWX: SRCG) for about 6.3bn Swiss francs (USD$6.3bn), including debt. Liberty Global has made about USD$16bn worth of merger and acquisition deals so in the last 14 months. Liberty Global Plc is not rated in our Global Top Stock Ideas. Sunrise Communications Group is rated “Attractive” in our European SMID-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 Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • ABB Ltd. (SWX: ABBN) will partner with French-based software company Dassault Systemes SE (ENXTPA: DSY) for a global software deal to focus on factory automation and robotics. ABB is currently overhauling its business operations after it sold an 80.1% stake in its power grids to Japan’s Hitachi Ltd. (TSE: 6501) for USD$6.4bn. ABB is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Dassault Systemes is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. Hitachi is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas.
  • 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.
  • Nielsen Holdings Plc (NLSN) announced CY4Q2018 financials slightly better than consensus and FY2019 guidance that edges 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.

Global Commodities & Power 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.

Global Health Care 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.
  • Bristol-Myers (BMY) shares traded higher after it told investors that its combination with Celgene (CELG) will deliver, “substantial benefits,” to holders. The move by Bristol-Myers is in response to a letter from activist investor Starboard urging the company to oppose the deal. Bristol-Myers is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. Celgene is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Novavax (NVAX) shares plummeted by more than 50% after a pair of analysts from JPMorgan and Piper Jaffray downgraded the small-cap drugmaker following a failed late-stage study of its ResVax vaccine. Novavax’s ResVax vaccine, designed to prevent respiratory syncytial virus disease in infants via maternal immunization, did not show any statistical benefit in the study. Novavax is rated “Top Short” in our US SMID-Cap Global Top Stock Ideas.  

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1378
  • GBP£ is currently down -0.346% against the USD$ to 1.3263
  • CHF is currently up +0.381% against the USD$ to 1.0023

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are lower with yields up 3.5 basis points to 0.183%
  • German 10-Year Bunds are lower with yields up 3.5 basis points to 0.183%
  • French 10-Year Government Bonds are lower with yields up 1.8 basis points to 0.569%
  • UK 10-Year GILTs are lower with yields up 2.8 basis points to 1.302%
  • Italian 10-Year Government Bonds are higher with yields down -3.3 basis points to 2.752%
  • Spanish 10-Year Government Bonds are lower with yields up 1.4 basis points to 1.173%

 

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
Vivendi SA Consumer Discretionary 25.7 5.37%               9,423,533
Anheuser-Busch InBev SA/NV Energy 68.6 4.08%               4,960,598
Fresenius SE & Co KGaA Telecommunication Services 49.4 2.68%               2,061,208
Banco Santander SA Health Care 4.3 2.29%            58,876,371
Industria de Diseno Textil SA Materials 26.5 2.00%               3,276,999
 
Underperformers Sector Price 1D % Chg Volume
Engie SA Industrials 13.5 -4.68%               3,886,377
Amadeus IT Group SA Materials 66.7 -3.53%                  303,786
Unibail-Rodamco-Westfield Telecommunication Services 142 -1.22%                  183,426
Siemens AG Utilities 96.1 -0.57%               2,503,625
Volkswagen AG Consumer Staples 151 -0.50%                  850,849
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