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Global Stocks Trending in the News for April 3rd, 2019

Apr 03, 2019

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Global Consumer Stocks Trending in the News

  • Amazon (AMZN) intends to cut prices on hundreds of prices at its Whole Foods stores as it looks to change the high-cost image of the brand.  Amazon is cutting the price of over 500 items, according to a report in the WSJ.  The cuts are set to be made Wednesday and are the largest of its kind at the store, ever, with the average cut around 20%.  Amazon is looking to extend its reputation for low prices to its Whole Foods stores.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Lear Corp (LEA) said it will acquire Xevo Inc for $320 million.  Xevo is a maker of automotive software that connects drivers with food, fuel and parking establishments.  Lear expects to close the transaction in the second quarter and will pay for the acquisition through debt financing.  Lear said regulators will need to approve the deal.  Lear Corp is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Pandora A/S  (CSPE: PNDORA) shares sank after Carnegie published a note that questions the company’s sales growth in China. In its note, Carnegie warned clients that Pandora may have faced challenges in its CY1Q2019 sales in China, citing March sales figures from Alibaba’s website Tmall. Pandora is rated “Neutral" in our European Large-Cap Global Top Stock Ideas.
  • Proctor & Gamble (PG)  in under pressure in India and other countries to help deal with the vast amount of waste generated by its disposable products.  India is a particularly attractive market for Proctor & Gamble with massive growth in demand expected for its products and the government is seeking help to deal with the waste generated by disposable diapers and sanitary pads.  Activists in India have called on P&G to help deal with this waste and the health risks it entails.  Proctor & Gamble is rated "Top Buy" in our US Large-Cap Global Top Stock Ideas and "Top Buy" in our US Consumer Staples Global Top Stock Ideas
  • Superdry Plc (LSE: SDRY) shares fell after co-founder Julian Dunkerton won a battle to rejoin the board of directors of the UK apparel retailer. Since Dunkerton’s initial departure about a year ago, Superdry shares have tanked 65% amid repeated profit warnings from the company. Prior to his re-appointment, Dunkerton had been a vocal advocate of current management, having launched a, “Save Superdry,” website. Superdry is rated “Neutral" in our United Kingdom All-Cap Global Top Stock Ideas.
  • Tesco (LSE:TSCO) got further bad news with news that UK supermarket sales grew only 1.2% overall for the four weeks ending March 23rd.  This compares to 2.5% the previous month.  The uncertainty surrounding Brexit and the economy have caused shoppers to pull back from shopping at large chains and have shifted more purchases to discounters.  Tesco is rated “Neutral” in our United Kingdom Global Top Stock Ideas.
  • Walgreens Boots Alliance (WBA) reports weak results and slashes guidance.  Fiscal second quarter EPS of $1.64 came well below $1.72 consensus.  Walgreens posted sales of $34.53 billion came in line with $34.52.  Retail sales fell 3.8% while a 2.2% drop was expected.  Pharmacy sales grew 1.9%, below the 3.0% expected.  Walgreens now sees flat EPS growth this year, cutting its original guidance of 7-12% EPS growth.  Walgreens Boots Alliance is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Walmart (WMT) announced customers will be able to order groceries through Alphabet’s Google (GOOGL) assistant by saying “Hey Google, talk to Walmart.”  This functionality comes from a partnership with Google that Walmart announced in 2017 but has yet to bear any fruit.  Shoppers only use voice assistants for about 4% of purchases presently but that is expected to increase significantly.  Walmart is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Former Wynn Resorts Ltd. (WYNN) executives hid allegations that founder Steven Wynn sexually harassed women from the Massachusetts Gaming Commission, according to a report from the regulator. The Massachusetts Gaming Commission is now considering revoking Wynn’s license to operate in the state as the company plans to open a USD$2.6bn resort in the Boston Harbor. Wynn Resorts is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Information Technology and Communication Services Stocks Trending in the News

  • Comscore (SCOR) said both its CEO and President are resigning the company, prompting the stock to lose over a quarter of its value.  The announcement also caused a wave of downgrades as both executives were on the job barely a year.  CEO Bryan Wiener said he and the board “had irreconcilable differences on how to execute the company’s strategy.”  Comscore is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Tencent (TCEHY, SEHK:700) is planning to raise $5 billion in a dollar-denominated bond sale as soon as tomorrow.  Tencent has received approval for up to $6 billion to be sold, but reports are for a $5 billion sale.  Tencent will use $3 billion to pay maturing debt and the rest for operations.  Tencent plans to continue to spend heavily on content acquisition.  Tencent is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Wirecard (XTRA:WRI) said it is unable to publish the full reports the law firm prepared regarding allegations in Singapore.  Wirecard said because of third-party rights it could not release the report as names and details in the report could subject the company to legal risks.  Wirecard is investigating the release of a redacted version to the public.  Wirecard is rated “Neutral" in our European Large-Cap Global Top Stock Ideas.

 

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

Global Industrials Stocks Trending in the News

  • Delta Air Lines (DAL) shares appreciated after renewing its 23-year long partnership with American Express (AXP) for an additional 11 years, increasing the likelihood that Berkshire Hathaway (BRK.B) will purchase the airline. Stifel analyst Joseph DeNardi wrote in a note to clients, “While we had suspected that Delta could announce an extension with AmEx at some point this year, this is earlier than we had thought and the improvement in revenue and economics are significantly better than we were expecting.” Delta Air Lines is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas. American Express is rated “Attractive” in our US Large-Cap Global Top Stock Ideas. Berkshire Hathaway is not rated in our Global Top Stock Ideas.  
  • Norfolk Southern (NSC) was upgraded by Bank of America Merrill Lynch to buy.  Bank of America also hiked the price target of Norfolk Southern to $205 from $190.  Norfolk Southern posts “continued gains” in its performance metrics of its Precision Schedule Rail division.  There is room for further upside improvement there, Bank of America notes.  Norfolk Southern traded at its highest level since July 1980.  Norfolk Southern is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Henkel AG & Co. KGaA (XETRA: HEN3) shares slid after M.M. Warburg Investment Research downgraded the stock from buy to hold. Over the last 3 months, analysts have lowered the consensus 1-year price target for Henkel AG by 13%. Henkel AG currently maintains 8 buy recommendations, 21 hold recommendations, and 4 sell recommendations across analyst ratings. Henkel AG is rated “Top Short" in our European Large-Cap Global Top Stock Ideas

Global Financials Stocks Trending in the News

  • Ameriprise Financial Inc. (AMP) shares moved higher after the company announced the sale of its auto and home unit to American Family Insurance Mutual Holding Co. for USD$1.05bn in gross cash proceeds. Ameriprise CEO Jim Cracchiolo sees the deal as a way for the company to increase focus on its financial advice, wealth management, and asset management operations. Ameriprise is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas. 
  • BlackRock (BLK) is about to embark on a sweeping overhaul of its structure as it seek to maintain growth with its massive size.  BlackRock announced the effort in an internal memo.  BlackRock is reorganizing sales and moving a number of senior executives while adding responsibilities to 2 key executives that are in the running to succeed CEO Larry Fink.  BlackRock presently has over $6 trillion in asset under management and is looking to expand into new areas.  BlackRock is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Deutsche Bank’s (DB:DBK) potential merge with Commerzbank (DB:CBK) got a push from Germany’s Finance Minister after he called for a “strong banks” in Germany that can funds its export-led economy.  Labor unions have been adamantly against the merger which will require the shedding of thousands of jobs.  Since announcing plans to merge in March, the government has been quiet with these comments the first since then.  Deutsche Bank’s CEO said a decision will be made by April 26th.   Deutsche Bank is rated “Neutral” in our European Large-Cap Global Top Picks.  Commerzbank is rated “Unattractive” in our European Large-Cap Global Top Stock Idea

Global Commodities & Energy Stocks Trending in the News

  • Dunkin’ Brands (DNKN) was downgraded today to market perform from outperform at BMO Capital Markets.  Dunkin’ Brands saw its price target cut to $75 from $80.  Dunkin’ Brands has an average price target of $71.19 in the market today.  BMO believes the fundamentals of Dunkin’ Brands’ story remains intact but at this point the valuation is “less persuasive.”  Dunkin' Brands is rated "Attractive" in our US Large-Cap Global Top Stock Ideas and "Attractive" in our  US Consumer Discretionary Global Top Stock Ideas.
  • ExxonMobil (XOM) is in talks to sell assets in Nigeria in both offshore and onshore businesses, according to Reuters.  ExxonMobil has held talks with local Nigerian companies about sales in assets that it has partnered with Nigeria’s national oil company NNPC.  Sales could raise up to $3 billion for ExxonMobil, Reuters notes.  ExxonMobil is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas. 
  • Vale’s (VALE) curtailed mining operations is being felt more broadly as Brazil’s Ministry of Mines and Industry reports fell to 22.18 tons in March from 29.95 tons a year ago.  Vale had been whittling away at its inventory but going forward the lack of production will begin to be felt more.  Goldman Sachs raised its expectation for iron ore to $85 per ton.  Vale ha shuttered over 90 tons of production and for now is focused on safety and not restoring production.  Vale is rated “Neutral” in our Brazil 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