blog

Latest from the Quantamize Blog

Global Stocks Trending in the News for March 11th, 2019

Mar 11, 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

  • American Eagle’s (AEO) weak first quarter guidance is a temporary situation that will revert by the second quarter, according to Telsey Advisory.  American Eagle’s spending in the first quarter will deliver better EPS for the remainder of 2019.  Telsey highlights a number of positives for the stock that far outweighs the temporary weakness expected in the first quarter, including continued strength in denim and the Aerie brand.  American Eagle is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Berry Group (BERY) has agreed to acquire RPC Group Plc (LSE:RPC) for 3.34 billion pounds (USD$4.4 billion) which will create one of the largest plastic packaging companies in the world.  Berry Group beat out a rival bid from Apollo Management (APO).  Berry Group was a holding of Apollo in the past only to be a competitor for acquisition targets now.  Berry Group is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.  RPC Group is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas.  Apollo Management is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • Big Lots (BIG) reported fourth quarter adjusted EPS of USD$2.68, beating consensus of USD$2.30.  Fourth quarter revenue of USD$1.6 billion came in line with USD$1.6 billion consensus.  Same store sales growth of 3.1% came well above 1% consensus.  Big Lots gave first quarter EPS guidance of USD0.65-0.75, below present consensus of USD$0.95.  Big Lots is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Costco Wholesale Corp. (COST) shares rose the most intraday in more than 2 years after the company reported better-than-expected FY2Q2019 results, described by Stifel as, “impressive,” and, “solid,”. Costco financials for FY2Q2019 were highlighted by strong margins and an EPS of USD$2.01 that beat the highest analyst estimates, which ranged between USD$1.59 and USD$1.76. Costco is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  
  • Kroger’s (KR) lackluster fourth quarter results have weighed on the stock with analysts highlighting its turnaround initiative is not going so smoothly.  Kroger is in the midst of a program that is overhauling how it uses shelf space in its stores.  Kroger is also working to build out its delivery service at the same time so disruptions to its results are not such a surprise to many.  Kroger is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • National Beverage Corp. (FIZZ), the owner of LaCroix sparkling water, shares fell the most intraday in over two decades after posting disappointing financial results for its most recent quarter that spurred a downgrade and ratings cut for the stock at Guggenheim.  National Beverage Corp. CEO Nick Caporella said in a statement to investors, “We are truly sorry for these results stated above. Negligence nor mismanagement nor woeful acts of God were not the reasons – much of this was the result of injustice!” Guggenheim cut National Beverage Corp. shares to sell on the news while slashing its price target for the stock from USD$72/share to USD$45/share. National Beverage Corp. is rated “Top Buy” in our US SMID-Cap and “Neutral” in our US Consumer Staples Global Top Stock Ideas.  
  • Pandora (P) was cut at Carnegie to sell from hold.  Carnegie also cuts its price target to DK325 from DK360.  Carnegie added, however, that Pandora could trade well below that price target if the coming results confirm a further slowdown in China.  Pandora is rated “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Tesla (TSLA) is in talks about potentially ordering batteries from Contemporary Amperex Technologies (SZSE:300750) according to press reports.  Tesla reported in its last annual report that it only had one battery supplier and was looking for more.  The batteries would power the Model 3s that Tesla plans to start building at its new factory in China.  Telsa is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  Contemporary Amperex Technologies is not rated in our Global Top Stock Ideas.
  • Vail Resorts (MTN) shares soared after the company reported FY2Q2019 adjusted EPS of USD$5.02 that was above consensus of USD$4.83. Vail Resorts told investors that it expects FY2019 Ebitda between USD$683mm and USD$707mm, the midpoint of which is in line with consensus of USD$697.6mm. Vail Resorts 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

  • Alibaba (BABA) continues its push into delivery and logistics.  Alibaba is acquiring a 49% stake in China’s largest delivery company STO Express.  Alibaba will not control the company but as a strategic investor will participate in decision making.  STO Express is one of the 5 largest private logistics companies in China.  Alibaba has invested in 4 of those 5, STO included.  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Alphabet (GOOG.L), Facebook (FB). Amazon (AMZN) and other large tech companies should be broken up by the government because they have become too powerful, according to a report released by Senator Elizabeth Warren today.  She proposed designating these companies “platform utilities” and the creation of regulators to assure small business are not harmed by these companies.  Alphabet is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  Amazon is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  Facebook is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Apple (AAPL) was upgraded today at Bank of America to buy from neutral.  Apple also saw its price target raised to USD$210 from USD$180.  Apple’s average price target in the market today in USD$176.62.  Apple is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Disney (DIS) has the first blockbuster movie of 2019 with the release of “Captain Marvel”.  Disney saw the film earn USD$145 million in the US and USD$453 million in global ticket sales.  2019 has been weak for films so far so this is a welcome arrival for Disney.  Disney is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Eventbrite Inc. (EB) shares tumbled after announcing that tougher-than-expected customer integration efforts associated with a 2017 acquisition will drive slower revenue growth in the near-term. Eventbrite lost as much as a quarter of its value on the announcement. Eventbrite told investors that it expects revenue of between USD$80mm and USD$84mm for its next quarter, missing consensus of USD$91.4mm. Eventbrite is rated “Neutral” in our US SMID-Cap and “Unattractive” in our US Information Technology Global Top Stock Ideas.  
  • Nvidia (NVDA) is close to making an offer to acquire Mellanox Technologies (MLNX), according to a report in Bloomberg today.  Mellanox is focused on the technology that speeds data throughout a data center.  Bloomberg reports the deal would be valued at USD$5.9 billion.  Mellanox is based in Israel.  Nvidia is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Information Technology Global Top Stock Ideas.  Mellanox is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Oracle (ORCL) was downgraded 2 notches as Nomura to reduce from buy.  Nomura also cut Oracle’s price target to USD$42 from USD$53.  Nomura notes that Oracle is spending on share buybacks at the expense of investing in R&D.  Nomura expects Oracle will return to its average of USD$3 billion per quarter from its present USD$10 billion per quarter, calling its present rate “unsustainable”.  Oracle is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Wirecard (XTRA:WDI) saw its request to limit the police probe in Singapore dismissed by Singapore’s high court  Wirecard sought the return of documents and a limit on searches to just items related to the fraud allegations at hand.  Wirecard said it is fully cooperating with authorities and expects the matter to be resolved soon.  Wirecard is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Xerox (XRX) said its board has approved a reorganization of its corporate structure into a holding company.  The change will allow Xerox greater strategic, operational and financial flexibility. Holders of Xerox will receive an equal number of shares in the holding company with the change being implemented mid-2019.  Xerox is rated “Attractive” in our US Large-Cap and “Neutral” in our US Information Technology 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

  • Deutsche Bank (DB:DBK)  CEO Christian Sewing is reportedly dropping his resistance to a merger with Commerzbank (DB:CBK)  this year.  Informal talks between the companies have intensified in recent days, though a formal mandate has yet to be declared.  The German Finance Ministry favors a merger between the 2 as opposed to a merger with a foreign player. Deutsche Bank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  Commerzbank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Futu Holding (FHL), an online Chinese broker backed by Tencent (TCEHY, SEHK: 700), completed its IPO raising USD$90 million.  Futu priced its IPO at USD$12, the top of the range it mentioned during pre-pricing meetings.  Futu helps Chinese investors trade overseas and is the fourth largest broker in Honk Kong.  Tencent is rated “Neutral” in our China All-Cap Global Top Stock Ideas.  Futu Holdings is not rated in our Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • American Airlines (AAL) was forced to pull 14 of its 304 Boeing (BA) 737-800s after it discovered a third-party contractor has not properly secured overhead bins. American Airlines said the contractor’s work “was not up to our standards”.  American highlighted that there was no effect on flight safety as it had to cancel 40 flights because of the pulled jets.  American Airlines is rated “Neutral” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas. 
  • Boeing (BA) is under pressure after China grounded all 96 737-800s in the country in the wake of the Ethiopian Airlines crash of a 737-800 over the weekend.  China broke with normal protocol of the past in which the country that certified the jet-the US-is the first to make the call to ground.  A few other countries have followed China’s lead while most are not, yet.  This crash comes 5 months after the Lion Air crash of a 737-800 in which is feared to have been caused by sensors the plane pushing its nose down.  Boeing is rated “Attractive” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.
  • ConocoPhillips (COP) was awarded USD$8.75 billion by the World Bank’s arbitration tribunal for Venezuela’s seizure of its assets over 10 years ago.  The assets in the Orinoco Basin were unlawfully confiscated and ConocoPhillips should be compensated, the ruling states.  Given the present state of Venezuela, receiving payment cannot be assured.   ConocoPhillips is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • FedEx (FDX) had its price target cut to USD$210 from USD$225 at Citi ahead of reporting results on March 19th.  FedEx has seen “one of the rockiest periods in memory” according to Citi while maintaining its buy rating.  Citi is looking for clarity on progress on the integration of TNT that it acquired.  FedEx is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Ferrellgas Partners (FGP) shares plummeted after the company announced FY2Q2019 Ebitda of USD$119.7mm, missing the lowest analyst estimates that ranged between USD$120.0mm and USD$132.0mm. Ferrellgas also reported revenue of USD$5573.4mm for FY2Q2019, missing consensus of USD$671.0mm. Ferrellgas is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • General Electric (GE) was in talks to offload its insurance business before the talks were derailed, according to a report by Melius Research today.  GE recently reported it needed to put USD$15 billion into loss reserves for the unit as it continues to look for a buyer for it.  General Electric is rated “Neutral” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Navistar (NAV) reported first quarter 2019 adjusted EPS of USD$0.11, beating consensus of USD$2.30.  First quarter 2019 revenue of USD$2.43 billion beating USD$2.18 billion consensus.  Navistar gave full year revenue guidance of USD$10.75-11.25 billion while above present consensus of USD$10.74.  Navistar is rated “Attractive” in our US SMID-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.

Global Commodities Stocks Trending in the New

  • Barrick Gold (ABX) is ending its hostile USD$17.8 billion for Newmont Mining (NEM).  Instead, Barrick will opt to form a joint venture with Newmont focused on its Nevada assets.  The decision ends the 2 weeks of tense talks as both companies agreed to the joint venture is the best way to move forward.  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.

 

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