blog

Latest from the Quantamize Blog

Global Stocks Trending in the News for March 5th, 2019

Mar 05, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

 

Click name for Q-Factor breakdown, latest price details, more financial info and sentiment data.
 

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
  • Bed, Bath & Beyond (BBBY) was downgraded today by Barclay’s to underweight from equal-weight.  Barclay’s cut its price target for Bed, Bath & Beyond to USD$13 from USD$15, implying it sees 22% downside for the stock.  Barclay’s no longer believes in the turnaround plans of Bed, Bath & Beyond.  Bed, Bath & Beyond is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • The Children's Place (PLCE) had its price target cut today at B. Riley to USD$122 from USD$167 while maintaining its buy rating.  B Riley sees the heavy promotional and sales initiatives that weighed on results continuing into 2019 and likely to further weigh on financial performance.  Children’s Place is rated “Neutral” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.   
  • Kohl’s (KSS) fourth quarter EPS of USD$2.24 beating consensus of USD$2.18.  Kohl’s delivered same store sales growth of 1.0%, beating consensus of 0.2%.  Target fourth quarter revenue of USD$6.54 in line with consensus of USD$6.56.  Target affirmed 2019 EPS guidance of USD$5.80-6.15.  Kohl’s is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.   
  • Papa John’s Pizza (PZZA) announced that its founder, Joh Schnatter, will be quitting the board as part of his settlement with the company he founded.  Papa John’s said Schnatter will help the board find a suitable replacement for him on the board.  The recent tension comes after Starboard Value LP mounted an activist campaign to improve performance along with its USD$200 million investment in the company.  Papa John’s Pizza is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.   
  • Target (TGT) fourth quarter EPS of USD$1.53 matches consensus of USD$1.53.  Target delivered same store sales growth of 5.3%, beating consensus of 5.1%.  Target fourth quarter revenue of USD$22.98 matched consensus of USD$22.96.  Target affirmed 2019 EPS guidance of USD$5.75-6.05.  Target is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas

Global Information Technology & 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. 
  • CenturyLink Inc. (CTL) shares slipped after the company announced it discovered a, “material weakness,” in its accounting, specifically with the value of assets it acquired in the 2017 purchase of Level 3 Communications. As a result, CenturyLink notified relevant regulators that its 10-K filing will be late. CenturyLink cited problems with its internal controls as reasoning for the accounting oversight. CenturyLink is rated “Unattractive” in our US Large-Cap and “Top Buy” 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.
  • Juniper Networks (JNPR) announced its intent to buy Mist Systems for USD$405 million.  Mist Systems is a leader in the use of AI in the management of wireless cloud networks.  Juniper has made expansion into cloud-management of wireless network a priority.  Juniper expects the deal to close in the second quarter.  Juniper Network is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Salesforce.com (CRM) reported fourth quarter adjusted EPS of USD$0.70 beating consensus of USD$0.55.  Salesforce.com reported first quarter 2019 adjusted revenue of USD$3.6 billion in line with consensus of USD$3.54 billion.  Salesforce.com Inc gave first quarter EPS guidance of 60-61 cents per share.  Salesforce.com Inc is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Softbank (TSE:9984) has raised a USD$3 billion loan to cover commitments as Softbank waits for funds committed to its Vision Fund.  Softbank has raised over USD$100 billion in what it calls the world’s largest pool of money to fund tech investments.  Softbank’s Vision Fund has stakes in over 70 tech companies worldwide.  Softbank is rated “Neutral” in our Japan 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.
  • 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. 
  • YY (YY) reported fourth quarter EPS of 12.86 yuan beating consensus of 12.66 yuan.  YY delivered fourth quarter gross margin of 35.1%, a touch better than 35.0% expected.  YY fourth quarter revenue of 4.64 billion yuan a touch better than consensus of 4.47 billion yuan.  YY affirmed first quarter revenue guidance of 4.01-4.16 billion yuan.  YY is rated “Neutral” in our China All-Cap Global Top Stock Ideas. 

Global Industrials Stocks Trending in the News

  • Alaska Air (ALK) has lowered revenue guidance for the first quarter.  Alaska Air see revenue growing just 1-2% in the first quarter, down from 3-4% earlier.  Poor winter weather has dampened demand early in the quarter and is the main reason for the cut to guidance.  Alaska Air is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Industrials 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.

 

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

Global Financials Stocks Trending in the News

  • Aviva (LSE:AV) announced Maurice Tulloch will be appointed CEO effective yesterday.  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. 
  • Nordea Bank (OM:NDA SE) is shares fell yesterday after a report that it is being implicated in the larger money laundering investigation going on in the country.  Sweden’s largest broadcaster reported yesterday 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 & Power Stocks Trending in the News

  • 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.
  • NextEra Energy Partners LP (NEP) received a USD$900, investment from private equity firm KKR & Co. (KKR). NextEra said in a statement Friday that the investment will allow the company to manage any cash flow disruptions stemming from plants that sell power to the troubled PG&E Corp. (PCG). NextEra is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas. KKR & Co. Is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. PG&E Corp. is rated “Attractive” in our US Large-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 changed the inspection company that was inspecting the dam that collapsed after the initial inspectors would not affirm the dam was safe, according to the Wall Street Journal yesterday.  Vale rehired a past inspection company that gave the dam a passing grade, the dam that eventually collapsed killing 186 people, mostly Vale employees.  There are still 122 people missing.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.

Global Health Care 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.
  • Eli Lilly (LLY) announced it is launching an authorized generic version of its best-selling insulin Humalog that will have a list-price of 50% below Humalog.  Insulin prices have soared and have been the spotlight of much negative press for drug makers.  Humalog is a 20-year old drug and critics complain its price has only continued to rise.  Eli Lilly is rated “Neutral” 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