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Global Stocks Trending in the News for April 10th, 2019

Apr 10, 2019

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Global Consumer Stocks Trending in the News

  • Canadian Goose (TSX:GOOS) announced it is opening 6 more stores around this world.  Canadian Goose will open stores in Milan and Paris, in the US it will open a store in Minneapolis and in Canada it will open stores in Toronto, Edminton and Banff.  Canandian Goose presently operates 11 company stores.  Canadian Goose is rated “Attractive” in our Canada All-Cap Global Top Stock Ideas.
  • Cie Financiere Richemont SA (SWX: CFR) shares edged lower today after Credit Suisse downgraded its recommendation for the stock from neutral to underperform. Over the last 3 months, analysts have lowered their consensus price target for Richemont by 2.3%. Currently, Richemont maintains 10 buy recommendations, 18 hold recommendations, and 2 sell recommendations across analyst ratings. Richemont is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Harley-Davidson (HOG) was downgraded to market perform from outperform at Wells Fargo Securities.  Harley-Davidson’s price target was raised to $41 from $40 as well.   Harley-Davidson has risen 19% since the start of the year and with expected pricing headwinds in 2019, a downgrade was in order, Wells Fargo writes.  Harley-Davidson is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • The Japanese government will sell about $12 billion of Japan Post (TSE:6178) shares, according to the Ministry of Finance.  This sale will be the third and final sale by the government and will complete the privatization that was begun in 2015.  Post-sale, the government will hold less than a third of the company, the level required by law.  The sale of Japan Post shares could happen as soon as September.  Japan Post is rated “Neutral” in our Japan All-cap Global Top Stock Ideas.
  • Levi Strauss (LEVI) reported first quarter revenue growth of 7%, delivering $1.44 billion in revenue.  Levi Strauss reported first quarter EPS of 37 cents compared with a loss of 7 cents a year earlier.  Levi sees margins to remain flat or improve slightly.  Levi Strauss is not rated in our Global Top Stock Ideas.
  • Nordstrom (JWN) was upgraded to overweight from sector weight at KeyBanc.  Nordstrom shares have fallen 30% since November’s peak and KeyBanc thinks its weakness was “transient” and it “is undervalued at current levels.”  KeyBank notes the demand environment has improved since mid-March and it notes the strong growth in e-commerce expected.  Nordstrom is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Tesla (TSLA) announced sales staff cuts in the wake of disappointing delivery data.  Tesla let sales staff go in Chicago, Brooklyn, Tampa and a handful of other locations.   These people were tasked with contacting people for test drives, etc and are no longer needed as Tesla shifts to online ordering.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Under Armour (UAA) shares suffer after B. Riley FBR published a report saying the company fell in its annual athletic survey.  Under Armour continues to be a laggard behind larger competitors in the sector.  Under Armour got some good news when Texas Tech advanced to the NCAA finals (but lost), the first team sponsored by Under Armour in the tournament to do that.  Under Armour is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Walmart (WMT) is fully embracing robots in its stores as it seeks to control labor costs.  Walmart is using robots to check inventory, clean floors and load inventory as it pays its workers more.  Walmart said 300 stores will add robots this year to check inventory while 1500 stores will receive automated floor scrubbers.  Walmart said 1 robot can save a number of hours of human work each day, allowing it greater flexibility with labor.  Walmart is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Wynn Resorts Ltd. (WYNN) shares fell on Tuesday after talks to acquire Australia’s Crown Resorts Ltd. (ASX: CWN) for as much as AUS$9.99bn abruptly ended. The talks fizzled out just hours after the talks were made public on Monday. Wynn Resorts confirmed in a statement published Tuesday that the company ended acquisition talks, “following the premature disclosure of preliminary discussion.” Wynn Resorts is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. Crown Resorts is rated “Neutral” in our Australia Large-Cap Global Top Stock Ideas.  

Global Information Technology and Communication Services Stocks Trending in the News

  • Alphabet’s Google (GOOGL) will be focused now on better monetizing Google Maps.  Maps is often called the least monetized asset in Google stable of units and they are looking to change that.  Maps is used regularly by over 1 billion people and Google is looking for ways to increase advertising there.  Analysts agreed there is a large opportunity and Google is committed to tapping it further.  Alphabet is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Apple’s (AAPL) opportunity in the health sector could be three times what the smartphone offers it, according to a report from Morgan Stanley today.  Apple’s opportunity ranges from $15 billion to up to $313 billion.  Morgan Stanley says Apple has the potential to be a digital disruptor in the health space with wearable like its Apple Watch.  Apple could be building the blocks of another ecosystem, Morgan notes.  Apple is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Baidu (BIDU) was downgraded to perform from outperform at Oppenheimer while its $205 price target was removed.  Baidu will be weighed down by higher spending this year and Oppenheimer expects the stock to be range-bound until the end of the year.  The higher spending will benefit revenue only in 2020 and 2021, hence the reason for the downgrade.  Baidu is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • China Tower (SEHK: 788) shares continued higher after Wellington Management disclosed that it increased its stake in the company by more than 201mm shares. Wellington Management now holds roughly 9.2% of China Tower shares, up from the 8% of shares held as of March 29. China Tower is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • SAP (DB:SAP) suffered 2 downgrades ahead of its earnings release.  HSBC cut SAP to hold from buy.  HSBC sees a risk to free cash flow generation with cloud adoption happening faster than expected.  UBS cut the stock to neutral from buy.  UBS believes that SAP’s 71% gross margin target in 2020 is “unattainable.”  UBS increased SAP’s price target to 105 euros from 98.  SAP is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Snap Inc. (SNAP) shares extended their rally Monday as shares are trading at their highest since August 2018 following an upgrade from RBC Capital Markets. RBC upgraded Snap Inc. shares from neutral to outperform, citing product innovation and a potential return to growth in daily active users. Snap Inc. Is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • Sony (TSE:6758) shares surge after it is reported that Third Point, the hedge fund run by Dan Loeb, is building a position in the company.  Reuters reports Loeb is looking to raise between $500 million and $1 billion to build a large position in an effort to sway Sony’s strategy.  Loeb may target certain divisions of Sony for divestiture, especially parts of its movie studios.  Sony is rated “Attractive” in our Japan All-cap Global Top Stock Ideas.
  • Telaria, Inc. (TLRA) shares traded higher after Canaccord raised its price target for the stock to a Street-high USD$9/share. Canaccord analyst Austin Moldow explained that he sees Telaria as a potential M&A target of Disney (DIS). In the past, Telaria has done business with Hulu, ABC, A&E, and Fox, which are all under Disney. Telaria is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas. Disney is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Walt Disney Co. (DIS) was upgraded to outperform from market perform at Cowen.  Disney’s price target was hiked to $131 from $102.  Cowen sees Disney well positioned for the launch of its streaming service, which Cowen expects will launch stronger than expected.  Disney has a “very powerful pipeline of products” and is in great shape for the coming quarters, the report notes.  Walt Disney Co. is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology 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

  • Airbus (ENTXPA:AIR) is illegally receiving subsidies from the EU, the US alleges, and the US intends to place tariffs on the EU because of it.  The EU said Boeing (BA) receives illegal subsidies from the US and the EU will respond with its own tariffs on the US.  The US and EU have been fighting over this subject for 14 years at the WTO and are likely to keep up the fight for the foreseeable future.  Boeing is rated “Top Short” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.  Airbus is rated "Neutral" in our European Large-Cap Gobal Top Stock Ideas.  
  • American Airlines (AAL) issued a profit warning for the first quarter, saying the grounding of its 737 max fleet as well as the government shutdown is weighing on results.  American Airlines said revenue per seat will grow only 1%, down from 2% guidance.  Pretax margin will come between 2% and 4%, down from 2.5% to 4.5% guidance previously.  American Airlines is rated “Neutral” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas
  • Delta Airlines (DAL) reported first quarter EPS of 96 cents, beating consensus of 90 cents and beating its own guidance of 85-95 cents.  Adjust revenue grew 7.5% to $10.4 billion.  Delta sees second quarter EPS $2.05-$2.35 while consensus is $2.13.  Delta expects total adjusted revenue to grow 6-8% in the second quarter with adjusted TRASM up 1.5%-3.5%.  Delta Airlines is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas

Global Financials Stocks Trending in the News

  • Goldman Sachs (GS) is returning to a business it has not touched in a decade-collateralized loan obligations (CLOs).  Goldman’s asset management unit GSAM has a platform called Battery Park to distributes deals to clients and is presently working on its first.  Demand has grown for CLOs and Goldman intends to increase its exposure there.  Goldman Sachs is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas
  • Wells Fargo (WFC) has languished in the 2+ years since its sales practices scandal, according to the WSJ.  In that time the bank has struggled as 2 CEOs have exited and revenue in its 3 main business lines has fallen.  Wells Fargo was once a fast growing, nimble bank admired by peers.  Today it is seeing falling revenue and is using cost cuts to boost earnings.  With no permanent CEO and a difficult job finding one, it is not clear what Wells’ plan going forward will be.  Wells Fargo is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

Global Commodities & Energy Stocks Trending in the News

  • South32 (ASX: S32) shares slipped after Goldman Sachs cut its rating for the stock to sell and set a price target of AUD$3.2/share, implying a 16% downside from the prior close. Goldman Sachs also cut its FY2019 and FY2020 EPS estimates by 3% and 9%, respectively, citing lower alumina prices and stronger FX. South32 is rated “Top Buy” in our Australia Large-Cap Global Top Stock Ideas.
  • United States Steel Corporation (X) shares slid today as Credit Suisse Group warned that the US steel manufacturer is vulnerable to an expected surge in steel supply. In a note to clients, Credit Suisse wrote that US Steel Corp., “is in a weaker competitive position versus peers entering the ‘Sheet Tsunami’ period in the US from 2021-2022.” Bank of America Merrill Lynch noted a similar concern for US Steel Corp. last month. US Steel Corp. is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Cerner Corp. (CERN) shares surged after the company announced it reached an agreement with activist investment fund Starboard Value to add four new board members. Additionally, Cerner Corp. announced a USD$1.2bn stock buyback program and that the company will begin to pay a dividend. Cerner Corp. 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