blog

Latest from the Quantamize Blog

Global Stocks Trending in the News for April 23rd, 2019

Apr 23, 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

  • Bed, Bath & Beyond (BBBY) announced changes to its board meant to appease activist investors that have been insisting on changes.  5 new independent members will join Bed, Bath & Beyond’s board with 5 currents members leaving.  Among those leaving are its co-founders and co-chairmen.  Its board will now contain 10 members, 9 of which are independent and 6 of which are women.  Bed, Bath & Beyond has been talking with the activist investors clamoring for change and expects these moves to satisfy their demands.  Bed, Bath & Beyond is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Coca-Cola (KO) reported first quarter earnings that beat expectations.  Coca-Cola reported first quarter ESP of 48 cents ahead of 46 cents consensus.  Coca-Cola saw unit case volume growth of 2%.  Coca-Cola sees full year organic revenue growth of about 4% in 2019.  Water and sports drinks were the star of the quarter growing 6%.  Coca-Cola is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas
  • Kimberley-Clark (KMB) reported first quarter adjusted that beat expectations.  Kimberley-Clark reported first quarter EPS of $1.66 beating $1.54 consensus.  First quarter net sales of $4.63 billion also beat consensus of $4.53 billion.  Kimberley-Clark saw first quarter organic revenue growth of 3%.  Kimberley-Clark said it attained $115 million in cost savings in the quarter and returned $510 million to shareholders.  Kimberley-Clark provided EPS guidance for 2019 of $6.50 to $6.70, in line with consensus of $6.62.  Kimberley-Clark is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Kroger (KR) has continued to struggle in adapting to the new grocery delivery dynamics of its sector, according to a WSJ report highlighting its challenges.  Kroger is known as a very conservative company and critics say this has severely limited its ability to adapt to the new supermarket environment.  Kroger has taken a long time to come up with a new approach as the landscape changes drastically.   Kroger’s CEO admitted, “There’s no doubt we were behind.”  Kroger believes it now has a plan to succeed.  Kroger is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Hasbro (HAS) reported a profit in the first quarter, a surprise as consensus was for a loss.  First quarter EPS of 21 cents came well above the 11 cents per share loss that was expected.  Hasbro first quarter revenue of $732.5 million was well above $662.7 million expected.  Hasbro saw a 9% rise in franchise brands revenue in the first quarter.  Hasbro continues to expect $50 to $55 million in cost savings in 2019.  Hasbro is rated “Top Short” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Lululemon (LULU) is set to host its first analysts day since 2014.  Lululemon is slated to lay out its strategy for the next few years.  Lululemon reported its fast sales growth in 6 years in March and investors are keen to know how the company will maintain its momentum.  Lululemon is due to hit its $4 billion revenue target before its 2020 deadline and its plans to take the company to the next level will be the focus.  Lululemon is expected to announce a loyalty program.  Lululemon is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas
  • Mattel (MAT) shares edged lower after Bronte Capital issued a short report for the stock that cited “seemingly dysfunctional management,” and the recall of the Rock ‘n Play sleeper due to infant deaths. Bronte Capital founder John Hempton also explained that the company’s high levels of debt will make it had to take on risks such as new products or talent. Mattel is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Polaris (PII) reported first quarter earnings and full year guidance above consensus.  Polaris first quarter adjusted EPS of $1.08 beatings consensus if $0.91.  First quarter sales of $1.50 billion matched consensus.  Polaris provided 2019 adjusted EPS guidance of $6.05 to $6.30 while consensus if $6.06.  Polaris said dealer inventory dropped 1% in the first quarter.  Polaris is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Proctor & Gamble (PG) reported fiscal third quarter core earnings ahead of consensus.  Proctor & Gamble third quarter EPS of $1.06, ahead of $1.03 expectations.  Fiscal third quarter revenue of $16.46 billion, also ahead of $16.36 billion consensus.  Proctor & Gamble saw organic revenue growth of 5% in the fiscal third quarter.  Proctor & Gamble reiterated full year guidance for core EPS growth of 3-8% with sales growth of 1%.  Proctor & Gamble is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Rent-A-Center (RCII) shares jumped by double-digits and traded at their highest level since 2015 after the company announced it will receive a $92.5 million settlement payment from Vintage Capital and B. Riley (RILY) regarding litigation. Raymond James upgraded shares of Rent-A-Center from strong buy to outperform on the news while hiking its price target from $25/share to $27/share. Rent-A-Center is rated “Attractive” in our US SMID-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas. B. Riley is rated “Unattractive” in our US SMID-Cap 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.  
  • Tesla (TSLA) has scheduled a presentation for investors and the press to show off its driverless car technology.  The event, curiously, is 2 days before Tesla is expected to report a quarterly loss.  Tesla was initially expected to report a gain, but difficulty in delivering cars overseas has caused the company problems.  Critics complain the event is simply a way to distract investors.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Whirlpool (WHR) reported first quarter adjusted that beat expectations.  Whirlpool reported first quarter EPS of $3.11 beating $2.86 consensus.  First quarter net sales of $4.80 billion was in line with consensus of $4.83 billion.  Whirlpool saw first quarter organic revenue growth of 3%.  Whirlpool reiterated EPS guidance for 2019 of $14.00 to $15.00, in line with consensus of $14.62 and sees $800 million in free cash flow in 2019.  Whirlpool is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas

Global Information Technology and Communication Services Stocks Trending in the News

  • Asos Plc (AIM:ASC) owner and CEO Anders Holch Polsen, Denmark’s richest man, lost 3 of his 4 children in the terrorist attacks in Sri Lanka.   A statement confirmed 3 of is children were killed but not which 3.  It was also not clear in which blast they were killed as there were multiple blasts in multiple locations as part of the attacks.  Asos Plc is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas
  • Samsung (KOSE:A005930) has abruptly canceled 2 Galaxy Fold prelaunch events.  The events were in Hong Kong and mainland China and come in the wake of malfunctioning Galaxy Fold models. A tech reporter from the WSJ posted photos on social media of a broken and peeling screen and that was followed by other pre-launch models breaking under testing.  Despite the cancellation, Samsung is reportedly sticking to the launch of the new phone in the US this Friday.  Samsung is the largest maker of cell phones in the world.  Samsung is not rated in our Global Top Stock Ideas.
  • Sprint’s (S) litigation against AT&T’s (T) “5G Evolution” ads will get its first hearing today and tomorrow with a ruling to follow shortly thereafter.  Sprint alleges AT&T’s use of the “5GE” symbol and ads is deceptive since the service does not meet international 5G standards.  The service is actually an enhanced 4G service, according to Sprint, and AT&T should stop deceiving customers because 5G service has still to be rolled out nationally.  Sprint is rated “Top Short” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.  AT&T is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Twitter (TWTR) reported first quarter sales that beat expectations.  Twitter reported first quarter revenue of $787 million, up 18% y/y and ahead of $775 million consensus.  Twitter reported active users grew to 134 million daily active users beating consensus of 128.6 million.  Twitter gave revenue guidance for the second quarter of $770 million to $830 million.  Adjusted EPS of 9 cents trailed consensus of 14 cents.  Twitter is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.    
  • Verizon (VZ) reported first quarter adjusted EPS that beat consensus.  Adjusted EPS came at $1.20 while consensus was $1.17.  Verizon operating revenue in the first quarter was $32.13 billion, in line with $32.15 billion consensus.  Verizon added 61,000 wireless subscribers, well below the 206,000 expected.  Verizon is rated “Attractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.    

Global Industrials Stocks Trending in the News

  • Grainger (GWW) reported first quarter earnings ahead of expectations.  First quarter EPS of $4.51 beat $4.44 consensus.  Revenue in the first quarter of $2.80 billion trailed the $2.88 billion consensus.  Grainger provided sales growth guidance for 2019 of 4-8%.  Grainger is rated “Neutral” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas
  • Jacobs Engineering Group Inc. (JEC) announced that it’s agreed to acquire cybersecurity firm KeyW Holding Corp. (KEYW) for $603 million. The acquisition will increase the number of Jacobs Engineering Group with top-secret government access by 50%. Although neither company is a household name, both have deep ties to Washinton’s cybersecurity and cyberintelligence specialists. The acquisition represents a substantial premium for KeyW Holding Corp., which had a market value of $393.4 million as of Thursday’s close. Jacobs Engineering is rated “Neutral” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas. KeyW Holding Corp. is rated “Neutral” in our US SMID-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.
  • Jet Blue (JBLU) reported first quarter adjusted EPS that beat consensus.  Adjusted EPS came at 16 cents while consensus was 12 cents.  Jet Blue operating revenue in the first quarter was $1.87 billion, in line with $1.87 billion consensus.  Jet Blue provided second quarter guidance for available seat miles, seeing that grow 4.5% to 6.5%.  Jet Blue sees revenue per seat mile growing 1% to 4% in the second quarter.  Jet Blue is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.    
  • Lennox International (LII) reported first quarter earnings that beat and guidance that matched consensus.  First quarter adjusted EPS from continuing operations of $1.68 came ahead of $1.48 consensus.  First quarter sales of $790.3 million beat $749.6 million consensus.  Lennox provided 2019 EPS of $12.00 to $12.60, while consensus is $12.32.  Lennox International is rated “Attractive” in our US Large-Cap and “Attractive” in our US Industrials 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
  • Steel Dynamics (STLD) said it sees healthy demand for steel now and for the rest of 2019 on its earnings conference call.  Steel Dynamics expects overall steel demand to grow 2% y/y over 2019.  The company also expects steel-scrap prices to remain stable.  Steel Dynamics reported first quarter EPS of 91 cents which trailed the 93 cents consensus.  Revenue of $2.80 billion came in line with US$2.83 billion consensus.  Steel Dynamics is rated “Neutral” 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

  • 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. 
  • Wells Fargo (WFC) will be holding its annual meeting this week and investors were hoping for some news on efforts to revive its performance.  The exit of its CEO makes any news on that subject to be very unlikely.  Since the exit of the CEO, the bank and has rescinded guidance on expenses and regulatory relief, further clouding the way forward for investors.  Wells Fargo is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

Global Commodities & Energy Stocks Trending in the News

  • Halliburton (HAL) reported first quarter results that beat consensus.  Halliburton reported first quarter revenue of $5.74 billion, ahead of $5.52 billion consensus.  Operating income for the first quarter came at $426 million beating consensus of $415 million.  Halliburton EPS from continuing operations was 17 cents.  Revenue was higher than expected in all regions Halliburton operates.  Halliburton is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Steel Dynamics (STLD) shares edged lower despite positive comments made by CEO Mark Millett on the firm’s first quarter earnings call. Millett told analysts, “We believe North American steel consumption will continue to see a steady increase.” Steel Dynamics reported first quarter sales and earnings that met analyst expectations. Steel Dynamics is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Intuitive Surgical (ISRG) shares slipped lower after the company reported mixed first quarter results, prompting several analysts to trim their price targets for the stock. Intuitive Surgical reported adjusted EPS of $2.61, slightly missing analyst expectations for earnings of $2.70/share. Intuitive Surgical also reported a revenue miss for its first quarter with total sales of $973.7 million compared to expectations of $975.3 million. Intuitive Surgical is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Medidata Solutions Inc. (MDSO) shares soared by double-digits following reports that French-based Dassault Systemes SE (ENXTPA: DSY) is seeking to acquire a US company. The reports indicate that Dassault is considering Medidata Solutions for the acquisition among other potential targets. The acquisition would bolster Dassault’s science division. Medidata Solutions is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas. Dassault Systemes is rated “Attractive” in our European 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