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Global Stocks Trending in the News for April 19th, 2019

Apr 19, 2019

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Global Consumer Stocks Trending in the News

  • Kering (ENXTPA: KER) shares slid after reporting first quarter financials that contained just in-line numbers from its Gucci brand. Gucci grew its US regional sales by just 5% on a comparable basis, down from a 29% increase in the fourth quarter. Analysts are holding Kering and its Gucci brand to high standards after its red-hot performance in FY2018. Kering is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.
  • Las Vegas Sands (LVS) reported first quarter adjusted EPS of 91 cents, beating consensus of 86 cents.  Revenue of $3.65 billion beat $3.5 billion consensus.  Macau revenue of $2.33 billion came ahead of $2.2 billion expected.  Las Vegas Sands confirmed work on the Four Seasons Suites Macau and Londoner Macau “is progressing.”  Las Vegas Sands is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Nestle (SWX:NESN) reported first quarter results that beat expectations.  Nestle saw strong sales growth in North America with higher prices and solid pet care sales.  Nestle posted organic sales growth of 3.4% in the Americas, above the 2.8% growth expected.  Total sales were 22.18 billion Swiss francs.  Nestle saw significant price gains in Brazil, its biggest market.  Nestle’s performance puts in a position to deliver sales growth in the mid to single digits.  Nestle is rated “Attractive” in our European Large-Cap Global Top Stock Ideas 
  • Nintendo (TSE: 7974) shares soared by double digits today after Tencent Holdings Ltd. (SEHK: 700) was awarded approval to distribute a Nintendo game for its popular Switch console. Tencent received approval to distribute the test version of New Super Mario Bros. U Deluxe for the Switch, a sign that Nintendo may be able to benefit from growth in China, which is the world’s largest games market. Tencent has applied and is waiting on approval to sell Nintendo Switch hardware in China. Nintendo is not rated in our Global Top Stock Ideas. Tencent is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Nissan Motor Co. (TSE: 7201) shares slipped following a report from Nikkei that the company plans to cut its global output by roughly 15% for FY2019 through March 2020. Nissan has since denied the report, calling the details, “completely incorrect.” Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Philip Morris (PM) posted earnings that beat expectations.  Philip Morris first quarter EPS of $1.09 came better than $1.00 consensus.  Revenue ex-excise taxes of $6.75 billion came in line with $6.74 billion consensus.  Philip Morris EPS guidance for 2019 of $4.87-$5.23, a slight cut from $4.90-$5.25 previously.  Philip Morris is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas. 
  • Sketchers (SKX) provided second quarter guidance that was well below consensus.  Sketchers expects second quarter EPS in the range of 30-35 cents while present consensus is 38 cents.  First quarter results came in line with EPS of 71 cents and revenue of $1.28 billion.  Same store sales grew 0.7% at company owned stores.  Sketchers is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Information Technology and Communication Services Stocks Trending in the News

  • Check Point Software (CHKP) shares slid after the company posted disappointing first quarter results. Despite the disappointing results, Oppenheimer sees the quarter as, “indicative of ongoing stability in what is typically a muted seasonal quarter.” Check Point is in the middle of transitioning towards a subscription-based services model. Check Point is not rated in our Global Top Stock Ideas.
  • Pinterest Inc. (PINS) share opened more than 27% higher in debut trading from an IPO price of USD$19/share. Pinterest marketed the shares for between USD$15/share and USD$17/share, and with a final IPO price of USD$19/share, the company is valued at roughly USD$10.1 billion. Pinterest is not yet rated in our Global Top Stock Ideas.
  • Zoom Video Communications Inc. (ZM) shares began trading Thursday and opened at USD$65/share after the company priced its IPO at USD$36/share. Zoom shares traded at a 74% premium to its IPO price in debut trading, valuing the company at more than USD$16 billion. Zoom reported net income of USD$7.6 million on revenue of USD$331mm in its fiscal year ending January. Zoom Video Communications is not yet rated in our Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Honeywell (HON) posted earnings that beat expectations and increased guidance for 2019.  Honeywell first quarter EPS of $1.92 came better than $1.83 consensus.  Revenue of $8.88 billion came in line with $8.63 billion consensus with organic sales growing 8%.  Honeywell EPS guidance for 2019 of $4.87-$5.23, a slight cut from $4.90-$5.25 previously.  Honeywell is rated “Attractive” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.
  • Lixil Group Corporation (TSE: 5938) shares dropped after the company posted an annual loss and its Chairman and CEO Yoichiro Ushioda announced his resignation. Lixil observed an operating loss of 15 billion yen, largely missing previously offered guidance of a 40 billion yen profit. Ushioda’s resignation comes after a long-standing battle by activist shareholders to oust him from the company. Lixil is not rated in our Global Top Stock Ideas.
  • Schlumberger (SLB) reported first quarter earnings that matched expectations.  Schlumberger reported first quarter EPS of 30 cents, matching consensus.  First quarter revenue of $7.88 billion came ahead of $7.80 billion.  Revenue in North America and Latin America grew while Europe and Middle East revenue was lower.  Schlumberger sees a good 2019 commenting “we expect oil market sentiment to steadily improve over the course of 2019.”  Schlumberger is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.  
  • Snap-On (SNA) first quarter earnings beat consensus, with adjusted EPS of $3.01 beating $2.90 consensus.  Snap-On first quarter revenue of $921.7 million trailed $933.3 million consensus.  Snap-On’s CEO said they see “continuing improvements in our US franchise network.”  Snap-On is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas
  • Union Pacific (UNP) reported results for the first quarter that beat consensus.  Union Pacific reported first quarter EPS of $1.93 that beat $1.88 consensus.  Operating revenue for the first quarter was $5.38 billion, below $5.49 billion consensus.  Energy and agricultural freight revenues fell while Industrial and Premium freight revenues grew versus a year ago.  First quarter operating ratio was 63.6%.  Union Pacific is rated “Attractive” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas   
  • United Rentals (URI) reported first quarter results that beat expectations.  First quarter EPS of $3.31 beat $3.03 consensus.  United Rentals first quarter revenue was $2.12 billion, ahead of $2.06 billion consensus.  United Rentals reaffirmed revenue guidance for full year 2019 of $9.15-$9.55 billion.  United Rentals CEO said he expects a strong year saying “customer sentiment remains positive.”  United Rentals is rated “Neutral” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas
  • Yamato Holdings (TSE: 9064) shares slid by double-digits after Nomura analyst Masaharu Hirokane downgraded the recommendation for the stock from buy to neutral. Hirokane also slashed his price target for Yamato Holdings from 4,000 yen/share to 2,750 yen/share, implying an 11% upside from its last closing price. Over the last 3 months, analysts have lowered their consensus 1-year price target for Yamato by 16%. Yamato Holdings is rated “Top Short” in our Japan Large-Cap Global Top Stock Ideas.

 

 

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Global Financials Stocks Trending in the News

  • Ally Financial (ALLY) reported first quarter earnings and revenue ahead of consensus.  First quarter EPS of 80 cents beat consensus of 78 cents.  Ally first quarter revenue of $1.6 billion beat $1.58 billion consensus.  Ally net interest margin in the first quarter was 2.67%, while return on equity was 11.1%.  Ally Financial is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • American Express (AXP) reported weaker than expected first quarter results.  American Express saw loan-loss provision grow 4% and expenses that grew 11% versus a year ago.  First quarter adjusted  EPS of $2.01 was a touch better than $1.98 consensus.  First quarter revenue at American Express was $10.36 billion, trailing $10.50 billion consensus.  American Express reported $809 million in loan-loss provisions, above $755 million from a year ago.  American Express reaffirmed full year 2019 EPS guidance of $7.55-$8.35.  American Express is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  
  • BBT&T (BBT) reported first quarter results ahead of consensus.  BB&T first quarter adjusted EPS if $1.05 beat $1.03 consensus.  BB&T first quarter net interest margin of 3.51% came a touch ahead of 3.49% consensus.  Credit loss provisions in the quarter totaled $155 million.  BB&T said it continues to prepare for its integration with SunTrust Bank (STI).  BB&T is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  SunTrust Bank is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Blackstone (BX) shares soared after the company posted strong first quarter results and announced plans to convert from a publicly traded partnership to a corporation. The switch to a corporation will make it possible for Blackstone to be included in indices, which could possibly boost its valuations by drawing in more ETF and mutual fund investors. Blackstone is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Citizens Financial Group (CFG) reported first quarter results ahead of consensus.  Citizens Financial Group first quarter adjusted EPS if $0.93 beat $0.89 consensus.  Citizens Financial Group first quarter net interest margin of 3.25% came a touch behind 3.27% consensus.  Credit loss provisions in the quarter totaled $85 million.  Citizens Financial Group posted net interest income growth of 6%.  Citizens Financial Group is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • E-Trade Financial (ETFC) reported first quarter results that beat consensus expectations.  First quarter EPS of $1.09 beat $0.93 consensus.  E-Trade Financial first quarter revenue was $755 million, ahead of $738 million consensus.  First quarter net interest income was $492 million.  Daily average trades were 279,405.  E-Trade Financial is rated “Neutral” in our US Large-Cap Global Top Stock Ideas 
  • SunTrust Bank (STI) reported first quarter results ahead of consensus.  SunTrust Bank first quarter adjusted EPS if $1.33 beat $1.30 consensus.  SunTrust Bank first quarter net interest margin of 3.27% matching consensus of 3.27%.  Credit loss provisions in the quarter totaled $155 million.  Sun Trust said it continues to prepare for its integration with BBT&T (BBT) and will not use its remaining $500 million authorization for share repurchases.  SunTrust Bank is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  SunTrust Bank is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  

Global Commodities & Energy Stocks Trending in the News

  • Alcoa (AA) reported first quarter results that were worse than expected.  Alcoa reported a 23 cents per share loss in the first quarter, worse than the 9 cents per share loss expected.  Adjusted ebitda of $467 million was better than the $403 million expected.  Revenue in the first quarter of $2.72 billion trailed the $2.81 billion expectation.  Alcoa cut its aluminum demand growth forecast to 2-3%, down from 3-4%.  Alcoa also cut its global aluminum deficit guidance to 1.5-1.7 million metric tons, down from 1.7-2.1 million metric tons.  Alcoa is rated “Top Short” 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