blog

Latest from the Quantamize Blog

Global Stocks Trending in the News for March 25th, 2019

Mar 25, 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

  • Avon (AVP) are rising after the Wall Street Journals reports that Brazil’s Natura (NATU3) is in talks to acquire the company.  Natura is discussing acquiring both the North American private-equity owned business as well as the London-based publicly traded business.  Natura previously acquired the Body Shoppe.  Avon announced a 10% cut in its workforce in January so a deal with Natura would not surprise the market.  Avon is not rated in our Global Top Stock Ideas.  Natura is rated “Top Buy” in our Brazil All-Cap Global Top Stock Ideas.
  • Debenhams Plc (LSE: DEB) shares fell after the company announced it’s seeking 200mm pounds (USD$262mm) of funding under a creditor plan. Because the new funding could wipe out shareholders such as billionaire Mike Ashley, he counteroffered to purchase and take control of the struggling UK retailer, an offer that was swiftly rejected. Debenhams is not rated in our Global Top Stock Ideas. 
  • Geely Automotive (SEHK:175) was upgraded to overweight from equal-weight at JP Morgan.  Geely reported results that were in line with consensus, which for JP Morgan saw a pleasant surprise.  JP Morgan said an aggressive new model pipeline should lead to market share gains over the coming year.  Geely should be able to hike its dividend with the greater free cash flow it expects.  Geely Automotive is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • GM (GM) plans to invest USD$1.8 billion in US manufacturing plants in 5 US states, including Ohio.  A total of 700 jobs will be added as part of the investments.  GM made the announcement at one of its Ohio plants, the same week President Trump lambasted the company for closing a different plant in Ohio.  GM is investing in an electric vehicle plant while closing a plant that builds small cars than Americans have been shunning.  GM is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Hibbett Sports (HIBB) shares soared the most intraday in their history after the company reported, “much-better-than-expected,” results for CY4Q2018, prompting a short-squeeze. Despite a FY2019 comparable sales forecasts of between –1% and 1%, Baird analyst Peter Benedict wrote in a note that this was a, “Strong finish that should squeeze shares higher,”. Hibbett Sports is rated “Neutral” in our US SMID-Cap and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Lululemon (LULU) was downgraded to neutral from outperform at Wedbush today.  Wedbush cut Lululemon’s price target to USD$155 from USD$176.  Lululemon is likely to have had a turbulent February, like the rest of retails, and is expected to have softening revenue growth as compared with the start of the year.  Lululemon reports fourth quarter results on March 27.  Lululemon is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
  • MGM Resorts (MGM) is entering an equal partnership with Orix (TSE: 8591) to, “create Japan’s first integrated resort in Osaka,” MGM Executive Vice President Ed Bowers said in a statement Friday. The resort is yet to be approved and the Osaka city government will likely announce a winning bid in March 2020. The news comes ahead of Osaka hosting the 2025 World Expo. MGM Resorts is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. Orix is not rated in our Global Top Stock Ideas.  
  • Nike (NKE) reported fiscal third quarter 2019 results that were generally in line.  Nike fiscal third quarter EPS of 68 cents came above 65 cents consensus.  Third quarter revenue of USD$9.61 billion trailed consensus of USD$9.65 billion.   Nike’s CEO commented, “Our business momentum is being accelerated by our ability to scale innovation at a faster pace and expand new digital experiences around the world.”  Nike is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Papa John’s International Inc. (PZZA) has added former NBA superstar Shaquille O’Neal to its board of directors. O’Neal will be the first black board member for Papa John’s as the struggling pizza chain attempts to undo damage caused by the use of a racial slur by the company’s founder. O’Neal also agreed to enter into a marketing agreement with Papa Johns to pitch the brand. Papa John’s is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Tiffany (TIF) reported fourth quarter results in line with consensus.  Tiffany reported fourth quarter EPS of USD$1.67, matching consensus with revenue of USD$1.32, also matching consensus.  Same store sales were flat (0%) with same store sales in Japan rising 3%, Americas 1% and the rest of the world flat.  Tiffany is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Tesla (TSLA) is alleging that one of its Chinese engineers stole confidential information on its autopilot system and then left to join Chinese rival Xpeng Motors.  Xpeng Motors in not being accused of any wrongdoing, with its CEO saying the company “plays by the rules.”  He added a flow of talent between companies is normal given that both companies are innovators.  Telsa is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Tyson Foods (TSN) is recalling 69,000 pounds of ready-to-eat chicken strips.  Tyson Foods is recalling the chicken because they may contain pieces of metal.  Tyson informed the US Department of Agriculture and they are coordinating the recall.  Tyson Foods is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Staples Global Top Stock Ideas. 
  • Winnebago (WGO) reported fiscal second quarter 2019 EPS od 68 cents, beating consensus of 58 cents.  Fiscal second quarter revenue of USD$432.7 million missed consensus of USD$468 million.  Winnebago’s CEO commented that Winnebago saw improved margins on a better product mix despite seeing moderately lower revenues.  Winnebago is rated “Attractive” in our US SMID-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Apple (AAPL) is set to debut its video streaming service today in a scheduled event.  The announcement is expected to start Apple’s shift towards more services business as its flagship iPhone has start to see lags in sales.  Apple is expected to announce it will sell separate subscriptions for news and pay TV.  Apple is also expected to announce its Apple TV app will begin to work on other streaming devices, not just its own devices.  Apple is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Facebook (FB) said the passwords of hundreds of millions of its users were visible to employees of Facebook because of a flaw.  Facebook said that while reviewing security in January it found that these passwords were stored in a readable format, in violation of its own procedures, and has since been fixed.  The passwords, Facebook assures, were not visible to the public.  Facebook says it has not found any unauthorized access to or abuse of these passwords.  Facebook is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Nokia Oyj (HLSE: NRE1V) shares fell after the company told investors that it is investigating compliance practices at Alcatel-Lucent (TCK), the Frech rival it purchased in 2016 for USD$18bn. Nokia shares dropped by as much as 8.2% during intraday trading on the news. Nokia is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas. Alcatel-Lucent is not rated in our Global Top Stock Ideas.  

Global Industrials Stocks Trending in the News

  • Boeing (BA) saw the first cancellations of orders for its grounded 737 Max-8 jet.  Garuda Indonesia, the flag carrier of Indonesia is looking to cancel its order of 49 737 Max jets, saying passengers have lost confidence in the jet in the wake of the crashes.  Garuda informed Boeing of its desire on March 14th.  Boeing is rated “Attractive” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Fedex (FDX) was downgraded to neutral from outperform at Daiwa Securities.  Daiwa sees growing risks to its Ground margin being under pressure in a slowing economy.  Express margins should continue to expand, Daiwa adds.  A weak international freight environment adds to the concerns.  Fedex is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas.
  • Tenaris SA (BIT: TEN) announced the acquisition of TMK PJSC’s US unit for USD$1.21bn, excluding debt. The acquisition comes after the TMK PJSC, Russia’s largest pipemaker, delayed multiple attempts to list the business. The acquisition will include USD$270mm of working capital. Tenaris is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  
  • Texas Instruments (TXN) was downgraded at Bernstein to market perform from outperform.   Bernstein maintained its USD$115 price target.  Bernstein said it is “increasingly nervous about the semiconductor industry” for the rest of 2019.  While Bernstein is happy there was a snap-back in the sector recently, the rest of the year is still cloudy for Bernstein, hence the downgrade.  Texas Instruments is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Trinity Industries (TRN) was downgraded by Buckingham Research to neutral from buy.  Trinity also saw its price target cut to USD$26 from USD$32.  Buckingham warned of a deterioration in lease rates for both railcars and sand cars, seeing a low single digit drop in rates.  An environment of generally weak railcar demand was cited as a reason for the downgrade.  Trinity Industries  is rated “Unattractive” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • UPS (UPS) is considering launching a vaccination service in the United States.  The service would include the dispatch of nurses to homes to administer vaccines to patients, Reuters is reporting today.  Merck (MRK) is reportedly in discussions with USP about participating in the project.  UPS’ head of healthcare logistics strategy made comments about the project.  UPS is rated “Neutral” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.  Merck is rated “Attractive” in our US Large-Cap 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

  • BlackRock (BLK) is set to acquire French analytics firm eFront for about USD$1.3 billion, according to a report from Bloomberg.  BlackRock will make the acquisition to expand private equity and real estate analytics for its clients, the report notes.  BlackRock is looking to add eFront to its suite of analytic offerings for its institutional clients.  BlackRock is rated “Attractive” in our US Large-Cap Global Top Stock Ideas
  • Citigroup Inc. (C) shares fell after it ousted eight equities traders in Hong Kong while suspending 3 others following an internal investigation into their dealings with some clients. Senior Equities Executive at Citigroup, Philip Shaw, was among those fired as a result of the investigation. The investigation focused around whether traders properly disclosed Citigroup’s own financial interest when facilitating stock trades. Citigroup is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Wells Fargo (WFC) put out a statement of support for its CEO Tim Sloan after media reports that it was looking to replace him.  Wells Fargo said the board of directors is fully supportive of Mr. Sloan, with its head saying, “rumors that Wells Fargo’s board reached out to potential CEO candidates are completely false.”  A number of politicians have recently called for the ouster of Wells’ CEO.  Wells Fargo is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • China Resources Power Holdings Company Limited (SEHK: 836) shares fell by as much as 15% after the company announced FY2018 net income that missed the consensus estimate by 41%. The net income missed drove China Resources Power to slash its dividend payment by more than half despite promising investors to match last year’s dividend payment. China Resources Power is rated “Neutral” in our China All-Cap Global Top Stock Ideas.  
  • Murphy Oil (MUR) in exiting Malaysia, selling its assets there to PTT (PTTEP) of Thailand for USD$2.13 billion.  Murphy Oil is exiting Malaysia to focus on opportunities in the United States.  Murphy said it will use USD$750 million of the proceeds to fund the expansion of its activities in the US.  Murphy Oil is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Newmont Mining’s (NEM) offer for Goldcorp (TSX:G) should be accepted, according to a Institutional Shareholder Services (ISS) report.  ISS said, “The arrangement makes strategic sense.”  Newmont’s USD$10 billion acquisition of Goldcorp will create the world’s largest gold miner.  Newmont Mining is rated “Ubattractive” in our US Large-Cap Global Top Stock Ideas.  Goldcorp is rated “Neutral” in our Canada All-Cap Global Top Stock Ideas.
  • Petrobras (PBR) is looking to raise USD$10 billion from the sale of refineries and it accelerates its focus on crude production, Bloomberg reports.  The state-run oil company of Brazil is looking to sell at least half of its refining capacity, its CEO said, and a more detailed plan is due in the coming months.  Petrobras holds 98% of the crude processing capacity and its CEO argues Brazil would do better with competition in the sector.  Petrobras is rated “Attractive” in our Brazil All-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Biogen (BIIB) announced it will buy back USD$5 billion of its stocks.  The announcement comes in the wake of the failure of its Alzheimer’s drug that caused it to lose a third of its market cap.  Wall Street has been speculating on its next move with Biogen potentially acquiring another player or even itself being a target for a takeout.  Biogen 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