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Global Stocks Trending in the News for March 4th, 2019

Mar 04, 2019

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Global Consumer Stocks Trending in the News

  • Alibaba (BABA) announced it is pairing with Office Depot (ODP) in its first partnership with a US company.  Alibaba is creating a new destination for US businesses to come and access Alibaba’s business-to-business platform of suppliers.  Alibaba will gain access to 10 million customers and 1800 sales agents at Office Depot.  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.   Office Depot is rated “Attractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Amazon (AMZN) is reported to be planning to open dozens of grocery stores around the US, according to a report in the Wall Street Journal.  Amazon will open the first of the additional grocery stores in Los Angeles.  Amazon is in discussions about locations in most of the major US cities, the report highlights.  Amazon is looking to build on its Whole Foods acquisition with stores at a lower price point.  Amazon is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Amazon (AMZN) has launched Project Zero, its effort to limit counterfeit sellers on its platform.  Project Zero lets brand owner delete product it deems are fakes.  This marks a shift in the way Amazon functioned in the past and it cedes responsibility for fighting counterfeiters to a third party, the brand owners.  Amazon is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Foot Locker (FL) shares surged after the company delivered CY4Q2018 earnings that beat the highest analyst estimate. Foot Locker reported CY4Q2018 adjusted EPS of USD$1.56, beating the highest analyst estimates that ranged between USD$1.32 and USD$1.49. Foot Locker also reported robust comparable sales growth of 9.7% in CY4Q2018, more than double consensus of 4.6% Foot Locker is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Gap (GPS) announced it will split into 2 companies, with Old Navy being spun off as a standalone company.  Gap reported fourth quarter 2019 adjusted EPS of USD$0.72 matching consensus of USD$0.72.  Gap reported fourth quarter 2019 adjusted revenue of USD$4.62 billion missing consensus of USD$4.7 billion.  Gap gave fiscal 2019 EPS guidance of USD$2.11-2.26 with flat to slightly up sales.  Gap is rated “Top Short” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Kering SA (ENXTPA: KER) shares moved higher after AlphaValue upgraded shares from add to buy. Kering currently maintains 21 buy recommendations, 4 hold recommendations, a 1 sell recommendation across analyst ratings. On average, analysts have increased their price target for Kering shares by 1.9% over the last 3 months. Kering is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Kroger (KR) announced it will stop accepting Visa (V) credit cards at the stores of its Smith’s stores, widening the ban on Visa cards at its stores.  Kroger complains the cost of its credit cards is too high, though it will still permit the use of Visa debit cards.  Kroger’s Smith’s unit operates 142 stores in western states.  Kroger is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  Visa is rated “Attractive” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Nordstrom (JWN) reported fourth quarter EPS of USD$1.48 beating consensus of USD$1.42.  Nordstrom reported fourth quarter revenue of USD$4.48 billion trailing consensus of USD$4.6 billion.  Nordstrom saw 0.1% same store sales growth, well below the 1.2% consensus.  Nordstrom gave 2019 sales growth guidance of 1-2%, with EPS guidance of USD$3.65-3.90, above consensus of USD$3.67.  Nordstrom is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Moncler (BIT: MONC) shares jumped by double-digits after the Italian jacket maker reported FY2018 that broadly beat analyst expectations. Jefferies analyst Flavio Cereda wrote in a note to clients that Moncler is establishing itself as a, “go-to brand,” for the millennial demographic. Jefferies raised its price target for Moncler from 37 euros/share to 39 euros/share while maintaining its buy recommendation for the stock. Moncler is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Tesla (TSLA) CEO Elon Musk said the company probably won’t post a profit in the first quarter.  Musk said Tesla will have a number of one-time charges that will see it not post a profit.  He said Tesla is cutting costs by closing some stores and cutting its workforce, and it will focus on selling cars online going forward.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • William Hill (LSE: WMH) shares slid after the company reported in-line FY2018 results that contained no new information about the company’s future. Peel Hunt analyst Ivor Jones wrote in a note to clients William Hill earnings are set to fall, “sharply,” in 219 due to partly the firm's investment in expansion to the US. Jones wrote in his note that payoff for the US investment, “remains some way in the future and we are skeptical about whether any analysis of the potential upside is investable.” William Hill is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • 58.com (WUBA) was downgraded to neutral from outperform at Macquarie.  Macquarie also cut the price target to USD$73 from USD$91.  The downgrade comes in the wake of results that came in line as Macquaries raises concerns about growth in the coming year.  58.com is rated “Top Buy” in our China All-Cap Global Top Stock Ideas. 
  • Autodesk (ADSK) reported fourth quarter adjusted EPS of USD$0.46 beating consensus of USD$0.42.  Autodesk reported fourth quarter adjusted revenue of USD$737.3 million beating consensus of USD$706.5 million.  Autodesk gave first quarter EPS guidance of 44-48 cents per share.  Autodesk is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • China Tower (SEHK:788) reported a 36% jump in annual profit, matching consensus.  China Tower delivered net income of 2.65 billion yuan (USD$396 million) in 2018, this compared to 2.66 billion yuan a year earlier in 2017.  China Tower expects continued strength anticipating strong spending on the coming 5G rollout from which it will benefit.  China Tower is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.
  • Dell (DELL) reported fourth quarter 2019 adjusted EPS of USD$0.52 matching consensus of USD$0.52.  Dell reported fourth quarter 2019 adjusted revenue of USD$14.7 billion missing consensus of USD$14.9 billion.  Dell gave second quarter EPS guidance of 50-53 cents per share.  Dell is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • Versum (VSM) was downgraded today by Jefferies to hold from buy.  Jefferies raised the price target for Versum to USD$47 from USD$44.  The downgrade comes after Versum declined Merck’s USD$48-per-share offer.  After rejecting the offer, Jefferies sees an unattractive risk/reward scenario.  Versum is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  Merck is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • WPP Plc (LSE: WPP) shares soared after the company dodged another results shock and reported stronger than expected earnings following a year plagued by client losses. Low expectations for WPP Plc were driven by weak results at rival Publicis Groupe SA (ENXTPA: PUB), who blamed ad spending cuts by consumer goods manufacturers in North America for its downturn. WPP Plc is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. Publicis Groupe SA is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Xilinx (XLNX) saw its rating lowered at BMO to market perform from outperform.  BMO has been bullish on Xilinx for 3 years with this being the first downgrade of Xilinx during that time.  BMO increased Xilinx’s price target to USD$125 from USD$100 while cutting its rating.  Xilinx is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas. 

Global Industrials Stocks Trending in the News

  • Eaton (ETN) plans to spin off its lighting division in a tax-free transaction.  Eaton said the division, which had USD$1.8 billion in sales in 2018, would be completely spun off by the end of 2019.  Goldman Sachs (GS) has been retained to advise on the transaction.  Goldman Sachs is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  Eaton is not rated in our Global Top Stock Ideas.
  • Lockheed Martin (LMT) will see a reduced order for F-35 jets in 2020.  The Pentagon will request 78 jets be built in 2020, down from the initially expected 84.  The report appeared in Bloomberg and has yet to be confirmed by the Pentagon.  Lockheed Martin is rated “Attractive” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Rheinmetall (DB: RHM) shares popped after the company delivered better than expected CY4Q2018 financial results for both its defensive and automotive division. Bankhaus Lampe analyst Gordon Schoenell wrote in a note to clients that Rheinmetall’s CY4Q2018 financial indicate, “surprisingly strong margins,”. Rheinmetall’s adjusted Ebit in CY4Q2018 blew past consensus by ~20%. Rheinmetall is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.
  • Rolls-Royce (LSE: RR.) shares continued to slip following Thursday’s FY2018 financial report that contained weaker than expected financial results. Investors are debating whether or not the quality of Rolls-Royce's cash flow generation and its profitability are sufficient to justify the stock’s valuation. Rolls-Royce is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Southwest Airlines (LUV) plans to offer service among the Hawaiian Islands, offering short-haul flights that it is best at.  Southwest has plans to take on local players and has hired management away from those local players.  Southwest sees a market with high price points and of a size where it believe it can compete effectively.  Southwest Airlines is rated “Neutral” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.

 

 

 

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Global Financials Stocks Trending in the News

  • Aviva (LSE:AV) announced Maurice Tulloch will be appointed CEO effective today.  Aviva has spent 5 months searching for a new CEO.  Tulloch is a veteran if the company, having joined in 1992.  He is presently head of the international insurance business and was appointed to the board 2 years ago.  Aviva is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • Jupiter Fund Management Plc (LSE: JUP) shares surged the most intraday in more than 5 years after it announced a higher than expected dividend following a, “tough year,” for asset managers. Jupiter Fund Management trimmed its FY2018 dividend to 28.5 pence/share, a 13% cut from the prior year. Jupiter Fund Management is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • London Stock Exchange Group Plc (LSE: LSE) CEO David Schwimmer announced plans to cut roughly 5% of its workforce to spur growth. London Stock Exchange Group Plc also told investors that it is well positioned to weather any fallout from the potential UK exit from the European Union. London Stock Exchange Group Plc is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Mitsubishi UFJ Financial Group Inc. (TSE: 8306) announced that it’s agreed to acquire DZ Bank’s (UNQ: 834310) aviation finance division, one of the largest acquisitions in the company's history. As part of the acquisition, Mitsubishi UFJ Financial Group will receive a loan portfolio worth 5.6bn euros (USD$6.4bn) and the unit’s employees. Mitsubishi UFJ Financial Group is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas. DZ Bank is not rated in our Global Top Stock Ideas. 
  • Nordea Bank (OM:NDA SE) is falling today after a report that it is being implicated in the larger money laundering investigation going on in the country.  Sweden’s largest broadcaster reported today that Nordea in involved in the money laundering scandal as investigators expand the existing investigation. Nordea Bank is rated  “Top Short” in our European Large-Cap Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • Linde (XTRA:LIN) unit Praxair will build a hydrogen plant in Louisiana.  Praxair will supply a major refinery will hydrogen under a long-term contract.  Praxair will build, own and operate the steam methane reformer, which will supply 170 million standard cubic feet of high-purity hydrogen each day.  Linde is not rated in our Global Top Stock Ideas.
  • Newmont Mining (NEM) has rejected the unsolicited USD$17.4 billion offer from Barrick Gold (ABX).  The deal would have created the world’s largest gold company.  Newmont’s board unanimously rejected the offer and submitted a proposal to create a JV encompassing both companies’ Nevada operations.  Newmont Mining is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  Barrick Gold “Neutral” in our Canada All-Cap Global Top Stock Ideas.
  • Vale (VALE) saw most of its senior executives leave over the weekend.  Regulators in Brazil recommended the removal of the CEO and most other senior executives in the wake of the dam disaster.  The interim CEO is a 10-year veteran of the company as a search for a new CEO begins.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.
  • Vale (VALE) is facing an investigation from Brazilian regulators over possible coverups regarding safety procedures regarding its tailing dams.  Authorities said fines could rise to 205 of revenue from 2018.  The investigation is being launched under Brazil’s anticorruption laws and was not expected.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Biogen (BIIB) is acquiring Nightstar Therapeutics (NITE) for USD$25.50 per share.  Biogen is looking to establish a clinical pipeline in ophthalmology.  Biogen is paying a 70% premium over its last closing price.  Biogen is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Nightstar is not rated in our Global Top Stock Ideas.
  • Dentsply (XRAY) reported fourth quarter adjusted EPS of USD$0.58 beating consensus of USD$0.54.  Dentsply reported fourth quarter adjusted revenue of USD$1.05 billion in line with consensus of USD$1.03 billion.  Dentsply gave 2019 EPS guidance of USD$2.25-2.40 which is above present consensus of USD$2.17.  Dentsply is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Portola Pharmaceuticals (PTLA) reported fourth quarter adjusted loss of USD$1.34 missing consensus of a loss of USD$1.14 per share.  Portola Pharmaceuticals reported fourth quarter adjusted revenue of USD$15.3 million beating consensus of USD$10.3 million.  Portola Pharmaceuticals had cash on hand of USD$317 million at the end of the fourth quarter.  Portola Pharmaceuticals is rated “Top Short” in our US 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