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Global Stocks Trending in the News for April 29th, 2019

Apr 29, 2019

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Global Consumer Stocks Trending in the News

  • Archer-Daniels Midland (AMD) reported first quarter earnings well below expectations.  ADM reported first quarter EPS of 46 cents, missing the 60 cents consensus.  First quarter revenue of $15.3 billion missed the $15.59 billion consensus.  ADM said it will create a new ethanol subsidiary to allow it more options, such as a spin-off, for that business unit.  ADM will be offering early retirement to some employees in the US and Canada.   ADM is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas
  • Amazon (AMZN) delivered first quarter earnings well above consensus.  Amazon delivered first quarter EPS of $7.09 while consensus was $4.67.  Amazon net sales in the first quarter were $59.7 billion, matching consensus.  Amazon reported AWS sales of $7.7 billion, posting 41% y/y growth, matching consensus of $7.67 billion.  Amazon gave 2Q sales guidance of $59.5 billion to $63.5 billion.  Amazon is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Amazon (AMZN) announced with its results that it will be transitioning its Prime free 2-day shipping to 1-day shipping.  Analysts estimate it will add $800 million in costs to transition to that service completely.  Competitors are moaning as most now match Amazon’s 2-day delivery and few expected the 1-day announcement.  Amazon is targeting many everyday items like toothpaste with its 1-day service, items it has had trouble competing in.  Amazon is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Colgate-Palmolive (CL) posted first quarter earnings and revenue in line.  Colgate-Palmolive first quarter adjusted EPS of 67 cents came in line with 66 cents consensus.  Revenue in the first quarter of $3.88 billion matched $3.86 billion.  Colgate-Palmolive reiterated full year guidance of 2% to 4% organic sales growth with net sales growth flat to slight growth.  Colgate-Palmolive is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas
  • Daimler (DB:DAI) reported first quarter results that matched consensus.  Daimler posted first quarter ebit of 2.80 billion euros while consensus was 2.78 billion.  Total sales of 39.7 billion euros came a touch ahead of 39.28 billion euros.  Daimler first quarter profit was 2.15 billion euros.  Analysts comment that this should be the worst quarter of 2019 as Daimler consider laying off up to 10,000 jobs.  Daimler is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas
  • Ford Motor Co (F) reported earnings that beat consensus, bearing fruit from its turnaround efforts.  Ford reported first quarter adjusted EPS of 44 cents, ahead of the 26 cents expected.  Revenue in the first quarter of $37.2 billion beat the $36.99 consensus.  Ford is rated “Top Short” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Goodyear Tire & Rubber (GT) report better than expected earnings.  Goodyear first quarter adjusted EPS of 19 cents came well ahead of 6 cents consensus.  Revenue of $3.6 billion missed $3.71 billion consensus.  Goodyear saw weakness in its Asian business.   Goodyear Tire & Rubber is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Mattel (MAT) posted first quarter sales and earning that beat consensus handily.   Mattel reported first quarter adjusted loss of 44 cents per share, better than the 58 cents per share loss expected.  Revenue in the first quarter of $689.2 million beat the $648 million consensus.  Barbie and Hot Wheels saw strong sales growth.  Mattel is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Restaurant Brands (QSR) reported first quarter results that trailed consensus.  Restaurant Brands reported same-store-sales at Tim Horton’s that fell 0.6%, well below the 1.9% growth expected.  Restaurant Brands first quarter earnings of 55 cents per share missed consensus of 58 cents per share.  There was no explanation for the miss at Tim Horton’s, which management said remains a strong franchise.  Burger King saw same-store-sales growth of 2.2%, in line.  Restaurant Brands is rated “Attractive” in our Canada All-Cap Global Top Stock Ideas
  • Starbucks (SBUX) was downgraded at Wells Fargo Securities to market perform from outperform.  Wells cut Starbucks’ price target to $80 from $83.  Starbucks reported solid first quarter results and even upped EPS guidance at the same time.  Wells, though, sees all of Starbucks growth opportunities priced into its present valuation, hence the downgrade.  Starbucks is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Target (TGT) shares slid after analysts praised Amazon’s (AMZN) announcement that it would begin to offer 1-day shipping to its Prime subscribers. Target fell as much as 8% on the news while Walmart (WMT) slipped nearly 4%. Amazon previously offered 2-day shipping for its Prime subscribers, which many analysts saw as a catalyst for driving sales.  Target was upgraded to overweight from equal-weight at Barclays.  Target saw its price target hiked to $115 from $85 as well.  Barclays wrote that Target has the potential to gain market share from rivals, especially its weaker retail competitors.  Barclays also cited Target’s strong traffic trends in its upgrade.  Target is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. Amazon is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. Walmart is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Apple (AAPL) discussed buying Intel’s (INTC) smartphone-chip business, according to a report from the WSJ.  Apple and Intel started conversations last summer and continued until Apple announced its settlement with Qualcomm (QCOM).  Intel is discussions with other parties that have expressed interest, the report goes on to add.  If Intel closes a deal, it could reap the company a few billion dollars, the report notes.  Apple is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  Intel is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  Qualcomm is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Intel (INTC) reported earnings in line and slashed guidance.  Intel reported first quarter adjusted EPS of 89 cents, ahead of87 cents expected.  Revenue in the first quarter of $16.1 billion came in line with $16.03 consensus.  Intel gave second quarter EPS guidance of about 89 cents and sees full year EPS about $4.35, a cut from $4.60 previously.  Intel is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • PayPal (PYPL) said it will invest $500 million in the Uber (UBER) IPO.  Uber said it lowered its target valuation to $80 billion to $90 billion, down from $100 billion.  Uber is seeking to raise $9 billion in its IPO.  If successful, Uber’s IPO will rank in the top 10 of all time.  PayPay is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Spotify (SPOT) reported it reached 100 million paid subscribers, close to the high end of expectations.  Spotify reported a loss of 47 million euros in the first quarter, better than the 68 million.  Revenue of 1.51 billion euros came a touch ahead of 1.47 billion expected.  Spotify gave second quarter guidance of 107-111 million paid subscribers with revenue of 1.51 to 1.71 billion euros.  Spotify is not rated in our Global Top Stock Ideas.
  • Visa (V) and Mastercard (MA) have completed an agreement with EU regulators to resolve its investigation into credit card fees for non-European visitors in Europe.  Visa and Mastercard will reduce fees charged as part of their settlement with EU regulators.  Interregional fees on debit cards will be lowered to 0.2% from 0.3%, the same as credit cards.  Online transactions will be charged 1.15% for debits cards and 1.5% on credit cards.  Visa is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  Mastercard is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • American Airlines (AAL) reported first quarter earnings in line.  American reported first quarter EPS if 52 cents while consensus was 51 cents.  American reported first quarter revenue of $10.58 was in line with $10.6 billion consensus.  American gave full year EPS guidance of $4.00 to $6.00, present consensus is $5.61.  This is a huge cut in guidance from the original $5.50 to $7.50.  American Airlines is rated “Neutral” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas
  • Mitsubishi Electric (TSE: 6503) shares tumbled after the company announced fiscal year guidance that came in 3.5% below the average analyst forecast. Mitsubishi Electric expects operating income of 295 billion yen in fiscal year, below consensus for 305.70 billion yen. Mitsubishi Electric reported fiscal fourth quarter operating income of 89.04 billion yen that beat consensus for 85.84 billion yen. Mitsubishi Electric is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas.
  • Parker Hannifin Corp (PH) agreed to acquire Lord Corp, the privately-held materials-sciences company, in a $3.68 billion deal.  The deal is all cash.  Parker Hannifin said it expects the deal to close within 4 to 6 months.  The deal will allow Parker Hannifin to expand into the materials-sciences products for the aerospace industry.  Parker Hannifin is rated “Top Buy” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas
  • Skanska AB (OM: SKA B) shares fell the most intraday since February after the company announced first quarter operating profit that fell short of the lowest analyst estimate. Skanska generated operating profit of SEK488 million in the first quarter short of analyst estimates that ranged between SEK549 million and SEK1.12 billion.  Skanska is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.

 

 

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Global Financials Stocks Trending in the News

  • American Express (AXP) was downgraded to neutral from buy at UBS.  American Express saw its price target raised to $118 from $113 together with the downgrade.  UBS sees a deceleration in growth at American Express and is cited as a key reason for the downgrade.   UBS no longer sees upside to consensus EPS forecasts.  American Express is rated “Attractive” in our US Large-Cap Global Top Stock Ideas
  • Capital One Financial (COF) reported earnings and revenue that beat consensus.  Capital One reported first quarter adjusted EPS of $2.90, ahead of $2.70 expected.  Revenue in the first quarter of $7.1 billion beat the $7.03 billion consensus.  Capital One Financial is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Royal Bank of Scotland Group Plc (LSE: RBS) shares slid after the state-backed lender announced that it is feeling the effects of the UK’s slowing economy on its bottom-line net income. Royal Bank of Scotland’s caution eclipsed the firm’s operating profit before tax of 1.01 billion pounds ($1.3 billion) in the first quarter, which topped analyst expectations.  Royal Bank of Scotland is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • Anadarko (APC) prefers the offer from Occidental Petroleum (OXY), valued at $38 billion, over the offer from Chevron (CVX), according to a report in FT.  Anadarko is “preparing to endorse” the offer from Occidental, the report notes.  Anadarko’s board has determined the Occidental offer is superior and should announce so soon.  Anadarko Petroleum is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.  Occidental Petroleum is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Chevron is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • ExxonMobil (XOM) reported first quarter earnings that missed expectations.  ExxonMobil first quarter EPS of 55 cents missed 72 cents consensus.  ExxonMobil total production of 3.98 mboe/d, in line with 4.01 mboe/d consensus.  ExxonMobil suffered weak prices in both the oil and natural gas markets as compared with the previous quarter.  ExxonMobil has total capital expenditures of $6.89 billion in the first quarter.  ExxonMobil is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas
  • Ferrexpo Plc (LSE: FXPO) shares tanked by 25% after the auditor assigned to the company resigned amid a money laundering investigation into a charity backed by the company. The auditor’s reassignment, which came without reason, shortly follows a dispute between the auditor and Ferrexpo’s board of directors over the role of Kostyantin Zhevago in the charity, who is sales Ferrexpo’s majority shareholder and CEO. Ferrexpo is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Glencore Plc (LSE:GLEN) is under investigation by the Commodities Futures Trading Commission for possible corrupt practices.  Glencore is being investigated by the US Justice Department, FBI as well as authorities in Brazil in relation to the “Car Wash” bribery scandal.  Glencore is also being looked at in connection with bribery in Nigeria.  Glencore is rated “Neutral” in our European Large-Cap and “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas
  • Just Eat Plc (LSE: JE) shares fell despite offering a FY2019 revenue forecast that was in-line with analyst estimates and its prior forecasts. Just Eat maintained guidance for FY2019 revenue between 1.0 billion pounds and 1.1 billion pounds, the midpoint of which matches analyst expectations for 1.05 billion pounds in revenue. Just Eat observed 28% y/y revenue growth and a 21% y/y increase in orders during the first quarter. Just Eat is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Eli Lily (LLY) won an appeal court ruling today on the validity of a patent on its Alimta lung-cancer drug.  The US Court of Appeals rejected claims from other manufacturers that wanted to sell lower-cost versions of the drug.  Eli Lily 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