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Global Stocks Trending in the News for March 7th, 2019

Mar 07, 2019

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Global Consumer Stocks Trending in the News

  • Amazon (AMZN) said it is closing its pop-up electronics stores as it adjusts its bricks and mortar strategy.    Amazon had opened 87 pop-up stores in malls and some larger retailers and expects to close them all within a month, calling it an experiment that will no longer continue.  Amazon will continue with its book stores and 4-star stores, where it sells only items rated 4 stars or more on its site.  Amazon is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Anheuser-Busch Inbev (ENXTBR:ABI) CEO Oliver Goudet will soon, an unexpected development.  Mr. Goudet will assume the top spot at JAB Holdings Ltd. (AIM:JBH), the consumer goods giant.  Anheuser-Busch Inbev said it will announce succession plans in due course with Mr. Goudet pledging to assist however possible.  He will leave right after the company’s annual shareholders meeting on April 24th.  Anheuser-Busch Inbev is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas
  • British American Tobacco Plc (LSE: BATS) shares traded notably higher after the head of the US Food and Drug Administration stepped down, invoking speculation that the agency may walk back on proposals to restrict menthol cigarette sales. Jefferies analyst Owen Bennett wrote in a note to clients, “Without Gottlieb pushing this forward, then we think near-term risk around this is reduced significantly.” British American Tobacco is rated “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Burberry Group Plc (LSE: BRBY) shares slipped after Goldman Sachs downgraded the high-end trench-coat maker from neutral to sell, citing a need for higher incremental investments to sustain brand momentum. “We continue to see positive brand momentum ahead but now apply higher incremental costs medium term,” wrote Goldman Sachs analyst Louise Singlehurst in a note to clients. Goldman Sachs cut its price target for Burberry from 2,148 pence/share to 1,855 pence/share. Burberry is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Burlington Stores (BURL) reported fourth quarter EPS of USD$2.83, beating consensus of USD$2.77.  Fourth quarter revenue of USD$2 billion came in line with USD$2.05 billion consensus.  Merchandise inventory of USD$954 million is well above the USD$752 million consensus.  Burlington gave first quarter EPS guidance of USD$1.21-1.31 while below present consensus of USD$1.36 and same store sales growth of 0-2%.  Burlington Stores is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Dollar Tree (DLTR) announced it is closing or rebranding almost 600 Family Dollar Stores.  Dollar Tree took a USD$2.73 billion charge in its most recent results on an asset it paid USD$9 billion for in 2015. Dollar Tree's Family Dollar stores have lagged in performance and are weighing on Dollar Tree’s results.  Dollar Tree is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Harley-Davidson (HOG) announced the acquisition of StaCyc Inc, a maker of electric powered two-wheelers for children.  Harley-Davidson said the acquisition reinforces its “commitment to lead in the electrification of motorcycling”.   Harley-Davidson has been seeking to expand its electric portfolio and is likely to make other acquisitions along the same line.  Harley-Davidson is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • HelloFresh (DB: HFG) shares slid despite the company reporting an adjusted Ebitda loss of 2.9mm euros, narrower than the expected loss of 14.8mm euros. HelloFresh told investors that it expects FY2019 revenue to grow by between 25% and 30%. HelloFresh is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.  
  • Just Eat (LSE:JE) reported full year revenue of 779.5 pounds, in line with consensus of 786 million pounds.  Just Eat expects 2019 revenue of 1.0-1.1 billion pounds.  Investors expect an announcement of a potential divestiture of its stake in Latin-American food delivery concern iFood, which could generate up to 650 million pounds for Just Eat in a sale of its stake.  Just East is rated “Top Short” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Proctor & Gamble (PG) will delist its shares from the Euronext Paris due to low trading volume.  Proctor & Gamble said the costs to keep the listing are not justified given the high costs of maintaining the listing.  Holders will be given the chance to swap their Euronext shares for those on the NYSE at a point in the near future.  Proctor & Gamble is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Quiz Plc (AIM:QUIZ) issued its third profit warning in the last six months.  Quiz shares have fallen 92% from the July peak as Quiz battles intense online competition.  Analysts have commented that is it unlikely to see growth in the near term from Quiz as management has not come up with a turnaround strategy.  Quiz is not rated in our Global Top Stock Ideas.
  • Revlon (REV) share are lower after Jefferies highlights Nielsen data showing recent weak sales of its products.  Nielsen shows a drop in sales of over 15% over the last 4 weeks.  Jefferies cites ongoing challenges for Revlon with the recent deceleration in sales chief among them.  Revlon is rated “Top Buy” in our US SMID-Cap and “Top Short” in our US Consumer Staples Global Top Stock Ideas.  
  • Schaeffler AG (DB: SHA) announced it is cutting 900 jobs, 700 of which are in Germany, as part of a consolidation plan among its 5 factories in Europe.  Schaeffler cut its guidance across the board and now sees single-digit high single-digit profit margins.  Schaeffler in the past was targeting profit margin of 12-13%.  Schaeffler has an 18-24 month plan to turnaround its operations.  Schaeffler is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.
  • Tesla (TSLA) CEO Elon Musk would better serve the company he founded by being less combative and less outspoken, according to James Anderson, partner and portfolio manager at Baillie Gifford.  He said he registered an “extraordinarily unsuccessful” pleas in July for Musk to run Tesla in a more peaceful manner.  Anderson wondered if Musk could do more by being in the background helping the company and not in the spotlight on a regular basis.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Thor Industries (THO) second quarter 2019 loss of 10 cents per share matching consensus.  Thor Industries second quarter 2019 sales of USD$1.29 billion well below consensus of USD$1.57 billion.  Thor Industries affirmed that in 2019 “we expect to face challenges that may affect our financial results.”  Thor Industries is rated “Unattractive” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Trip Adviser (TRIP) was downgraded to underperform from neutral at Cowen.    Cowen cut Trip Adviser’s price target to USD$40 from USD$50 while the average target price in the market is USD$56.14.  Cowen sees the slow start to 2019 for Trip Adviser weighing on results with weak revenue growth in 2019.  Trip Adviser is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Information Technology & Communication Services Stocks Trending in the News

  • Baidu (BIDU) was upgraded to outperform from neutral at CCB International Securities.  CCB cut its price target for Baidu to USD$187 from USD$190, with an 11% upside to its new price target.  The upgrade comes in the wake of updated guidance from Baudi which expects first quarter revenue of USD$3.5-3.68 billion.  Baidu is rated “Unattractive” in our China All-Cap Global Top Stock Ideas. 
  • Care.com (CRCM) fourth quarter revenue was USD$49.9 million matching consensus of USD$49.8 million.  Fourth quarter ESP of 26 cents beat 21 cents consensus.  Care.com gave first quarter EPS guidance of 8 cents below consensus of 17 cents and revenue of USD$52.5-52.8 million while consensus is USD$53.3 million.  Care.com is rated “Neutral” in our US SMID-Cap and “Top Short” in our US Information Technology Global Top Stock Ideas.
  • Dialog Semiconductor (DB:DLG) fourth quarter EPS od USD$1.06 matching consensus of USD$1.06.  Dialog Semiconductor fourth quarter revenue of USD$430.7 million below consensus of USD$442 million.  Dialog Semiconductor affirmed 2019 EPS guidance of USD$2.90 with revenue falling in the single digits.   Dialog Semiconductor is not rated in our Global Top Stock Ideas.  
  • Facebook (FB) said it intends to focus on private communications and not as much on shareable content.  Facebook will encrypt its messaging service and is working to combine its messenger, Whatsapp and Instagram platforms to give users 1 integrated platform for messaging.  Facebook said it sees the future of social media as small chat groups and not public sharing of content.  Facebook is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Fitbit (FIT) announced the release of 4 new or updated models today.  Fitbit will release a cheaper version of its Versa and Inspire smartwatches.  A version of the Versa with Sp02 sensor for sleep apnea will also be released.  Fitbit also intends to redesign its app to allow for more personalization.  Fitbit is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas. 
  • International Game Technology (IGT) reported fourth quarter EPS of USD0.24, missing consensus of USD$0.35.  Fourth quarter revenue of USD$1.27 billion came in line with USD$1.26 billion consensus.  International Game Technology gave 2019 adjusted ebitda guidance of USD$1.70-1.76 billion while present consensus is USD$1.75 billion.  International Game Technology is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. International Game Technology is not rated in our Global Top Stock Ideas.
  • Micron (MU) has its revenue outlook cut at Cleveland Research to USD$24 billion from USD$25.5 billion for 2019.  Micron will continue to see pricing headwinds and competition remains strong.  Cleveland also highlights that numerous clients have a high level of inventory, contributing to the weak end-demand.  Micron will report second quarter results March 20th.  Micron is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Weibo (WB) reported a 62% jump in profit in 2018, delivering a USD$571.8 million with revenue up 49% from a year ago.  Weibo saw as spending rise 50% in 2018 and made up 87% in Weibo’s revenue.  Weibo saw 462 million daily active users in December.  Weibo is rated “Attractive” in our China All-Cap Global Top Stock Ideas.
  • VMware (VMW) was downgraded to sell from neutral at Goldman Sachs while maintaining its price target of USD$177.  The downgrade of VMware was based on valuation with Goldman saying it sees all the good news priced into the stock.  VMware is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  

 

 

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Global Industrials Stocks Trending in the News

  • Continental AG (DB:CON) said it is seeing a “muted” start to the year, saying it expects 2019 to see lower vehicle production as compared to 2018.  Continental is the largest maker of auto parts in the world.  Continental sees a slowdown in China in the first half and expects margins to drop to 8-9%, down from 9.3% in 2018.  Continental is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • DS Smith (LSE: SMDS) shares edged higher after the company announced the sale of its plastics unit for USD$585mm. Jefferies wrote in a note to clients that the valuation of the business is, “attractive,” and ahead of what investors expected. DS Smith is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.  

Global Financial Stocks Trending in the News

  • Deutsche Bank (DB:DBK) made deep cuts to the bonuses it paid today according to a report in Bloomberg.  The bank was said to have cut is bonus pool by 15% with some people in New York and London receiving zero.  Deutsche Bank’s continued weak performance is primarily to blame for the cuts.  Deutsche Bank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas

Global Power & Commodities Stocks Trending in the News

  • Exxon Mobil Corp. (NYSE: XOM) shares slipped after the company announced plans to boost spending to levels not seen since the historic oil market collapse in 2014. Exxon Mobil annual capital outlays will average USD$32bn per year until FY2020’s end, a 24% increase from FY2018 levels. Exxon Mobil CEO Darren Woods told investors that the spending increase is intended to offset anemic investment levels in the oil industry. Exxon Mobil is rated “Unattractive” 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