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Global Stocks Trending in the News for May 1st, 2019

May 01, 2019

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Global Consumer Stocks Trending in the News

  • AMS AG (SWX: AMS) shares surged by more than 20% after the sensor supplier announced second quarter guidance that beat analyst estimates. AMS AG expects revenue during the second quarter to come between $390 million and $430 million, beat analyst estimates that ranged between $320 million and $400 million. AMS AG attributed to the expected wider adoption of 3D sensing in 2019 as reasoning for the guidance. AMS AG is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.
  • Beiersdorf AG (XTRA: BEI) announced financials for the first quarter which contained sales that beat the highest analyst estimates. Beiersdorf generated sales of 1.95 billion euros in the first quarter, surpassing the highest analyst estimates that ranged between 1.82 billion euros and 1.88 billion euros. Beiersdorf maintained its guidance for FY2019 while reporting organic revenue growth of 6% in the first quarter. Beiersdorf is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Cengage (CNGO) and McGraw Hill will merge in an all stock deal that would create the second largest college textbook seller.  The new company, to be called McGraw Hill and trade under the ticker MHED, will have $3.2 billion in revenue and expects to wring $300 million in cost savings post-merger over 3 years.  The deal requires regulator approval and is expected to close early 2020.  Cengage is not rated in our Global Top Stock Ideas
  • Clorox (CLX) reported fiscal third quarter revenue and earnings were in line with consensus.  Clorox fiscal third quarter EPS of $1.44 came in line with $1.45 consensus.  Revenue of the third quarter of $1.55 billion came in line with $1.57 billion expected.  Clorox gave full year EPS guidance of $6.25 to $6.35, up from $6.20 to $6.40 previously.  Clorox expects sales growth of 2-3% for fiscal 2019.  Clorox is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Staples Global Top Stock Ideas  
  • General Motors (GM) reported first quarter adjusted earnings that beat with revenue that trailed expectations.  General Motors first quarter EPS of $1.41 came ahead of $1.10 expected.  Revenue in the first quarter was $34.9 billion while $35.48 billion was expected.  GM’s Cruise unit, focused on self-driving cars, lost $169 million in the quarter and those losses will grow in 2019 as it gets ready to launch a robo-taxi service.  General Motors is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Hilton Worldwide Holdings (HLT) reported first quarter earnings above consensus with revenue in line.  Hilton first quarter adjusted EPS was 80 cents, ahead of 76 cents expected.  First quarter revenue of $2.2 billion matched consensus.  Hilton hiked full year EPS guidance to $3.74 to $3.84, up from $3.66 to $3.78.  Hilton Worldwide Holdings is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas  
  • Lumber Liquidators (LL) reported a first quarter loss that was worse than expected.  Lumber Liquidators first quarter loss per share was 17 cents, worse than the 13 cents expected.  Net sales for the first quarter came in line at $266.2 million while consensus was for $268 million.  Lumber Liquidators reaffirmed it full year 2019 forecast.  Lumber Liquidators is rated “Neutral” in our US Large-Cap and “Top Short” in our US Consumer Discretionary Global Top Stock Ideas
  • MGM Resorts (MGM) reported first quarter revenue that beat consensus but earnings that trailed.  First quarter adjusted EPS of 5 cents trailed consensus of 21 cents.  MGM first quarter revenue of $3.18 billion came ahead of $3.13 billion consensus.  MGM saw revenue drop a touch in Las Vegas while growing 23% in China.  MGM is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Mondelez International (MDLZ) reported first quarter adjusted earnings that beat consensus.  Mondelez International posted first quarter adjusted EPS of 65 cents, beating consensus of 61 cents.  First quarter adjusted revenue of $7.02 billion came well above $6.55 billion consensus.  Mondelez International gave adjusted EPS growth guidance of 3%-5% for 2019 with organic net revenue growth of 2%-3%.  Mondelez International is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • Molson Coors (TAP) reported earnings and revenue that trailed consensus.  Molson Coors first quarter underlying EPS was 52 cents, behind 58 cents consensus.  Revenue of $2.30 billion was a touch behind the $2.33 billion expected.  Molson reported a 4.7% drop in volume of beer sold worldwide.  Molson Coors is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Staples Global Top Stock Ideas  
  • Tesla (TSLA) and the SEC have come to an agreement on the oversight of CEO Elon Musk’s tweet.  The two sides came up with a list of financial milestones the Musk is not allowed to tweet about.  The new deal has a list of specific items that Mr. Musk is not permitted to tweet about without first getting approval from Tesla lawyers.  The new deal has a list more extensive than the original deal signed by the parties.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Wynn Resorts (WYNN) was cleared by the state of Massachusetts to open a casino in the state in the wake of its sexual misconduct problems.  Massachusetts left in the place a $35 million fine related to the misconduct.  The approval contained a sharp rebuke of Wynn’s CEO’s response to the situation but did not thwart Wynn’s desire to open the casino.  Wynn Resorts is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Yum! Brands (YUM) reported first quarter earnings that came in line with sale growth that beat consensus.  Yum reported worldwide sales growth of 4%, well above 2.7% expected.  First quarter EPS of 82 cents came in line with 81 cents consensus.  Yum first quarter revenue of $1.25 billion matched consensus.  Yum saw its delivery initiatives bearings fruit in the quarter while Pizza Hut’s challenges remain.  Yum Brands is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas  

Global Information Technology and Communication Services Stocks Trending in the News

  • Alphabet (GOOGL) reported first quarter 2019 results that trailed consensus.  Alphabet first quarter revenue ex-TAC of $29.48 billion trailed $30.04 billion consensus.  Adjusted EPS of $11.90 beat $10.65 consensus, the adjusted number does not contain the $1.7 billion EU fine.  The trends continue in the same direction for Alphabet’s Google-growing at a somewhat slower pace with earnings per clicking dropping, 19% in the most recent quarter.  Alphabet is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Advanced Micro Devices (AMD) delivered first quarter earnings and revenue in line.  AMD first quarter revenue of $1.27 billion matched consensus of $1.26 billion, growing 8%.  Adjusted EPS of 6 cents came a bit ahead if 5 cents expected.  AMD gave second quarter revenue guidance of $1.47 billion to $1.57 billion.  AMD is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.       
  • Apple (AAPL) reported fiscal second quarter earnings that beat consensus.  Apple first quarter EPS was $2.46, beating $2.36 consensus.  Apple saw revenue of $58 billion in the second quarter beating consensus of $57.49 billion.  Apple announced it would buy back $75 billion worth of stock.  Apple gave third quarter revenue guidance of $52.5 billion to $54.5 billion, well above consensus of $52.2 billion.  Apple said iPhone revenue dropped to $31.05 billion from $37.6 billion a year ago.  Apple is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Mastercard (MA) delivered first quarter revenue and earnings that beat expectations.  Mastercard first quarter revenue of $3.9 billion beat $3.85 billion consensus.  First quarter adjusted EPS of $1.78 beat $1.66 consensus.  Mastercard first quarter dollar volume and purchase volume both rose 12%.  Mastercard said it expects revenue to grow “in the low teens.”  Mastercard is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • McDonalds (MCD) reported first quarter same store sales well above consensus.  McDonald’s first quarter same store sales grew 4.5%, well above the 3% expected.  Total sales grew 5.4%, above 3.5% expected.  First quarter EPS of $1.72 trailed $1.75 expected by a touch.  First quarter revenue of $4.96 billion matched $4.95 billion consensus.  McDonald’s results were helped by strong breakfast sales and its delivery initiatives.  McDonald’s is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Samsung Electronics Co. (KOSE: A005930) joined chipmaking competitors in announcing an expected rebound in chip prices during the second half of 2019. Samsung made the announcement after the company reported profit in the first quarter that missed the average analyst estimate. Samsung is not rated in our Global Top Stock Ideas.
  • Western Digital (WDC) reported fiscal third quarter earnings that trailed consensus with revenue in line.  Western Digital’s first quarter EPS of 17 cents was well below the 45 cents consensus.  Revenue of $3.67 billion matched $3.68 billion consensus.  Western Digital said it expands a strong demand environment for the rest of 2019.  Western Digital is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Boeing’s (BA) problem continue to worsen with the news that an additional sensor on 737 Max aircraft was not working as airlines anticipated because of mistakes from Boeing.  There exists a separate sensor that was not working to back up the MCAS system that is believed to be involved in the 2 737 Max crashes so far.  Boeing put out a statement yesterday that indicated it either missed or overlooked the sensor problem when the plane was certified.  Boeing has not commented on what exactly happened, given the investigation that is underway.  Boeing is rated “Top Buy” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas
  • Epiroc (OM: EPI A) shares slipped after its order intake during the first quarter missed analyst estimates by roughly 5%. Despite the order intake miss, Epiroc maintained its guidance that orders can accelerate into the second half of 2019 and 2020. Morgan Stanley said that it interpreted Epiroc’s overall financials as broadly in line on an underlying basis. Epiroc is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.
  • General Electric (GE) reported negative free cash flow from industrial operations that was better than expected.  General Electric reported adjusted negative free cash flow from industrial operations of $1.22 billion, much better than the $2.9 billion negative free cash flow expected.  First quarter adjusted EPS of 14 cents beat 9 cents consensus.  General Electric said, “Power’s better-than-expected performance was principally driven by timing.”  General Electric is rated “Unattractive” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas
  • Ingersoll-Rand (IR) reported first quarter earnings and revenue well above consensus.  Ingersoll-Rand said Gardner Denver will combine with Ingersoll-Rand’s industrial division.  Ingersoll-Rand first quarter EPS of 89 cents beat 80 cents expectations.  First quarter revenue of $3.58 billion beat $3.50 billion consensus.  Ingersoll-Rand provided full-year EPS to about $6.35.  Ingersoll-Rand is not rated in our Global Top Stock Ideas.
  • L3 (LLL) reported first quarter earnings and revenue that beat consensus.  L3 first quarter revenue of $2.7 billion beat consensus of $2.52 billion.  EPS in the first quarter of $2.89 beat consensus of $2.49.  L3 gave full year revenue guidance of about $10.9 billion, below consensus of $11.06 billion with full year free cash flow expected to be $1.06 billion.  L3 is rated “Attractive” in our US Large-Cap and “Neutral” in our US Industrials 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 Financials Stocks Trending in the News

  • Yes Bank Ltd. (NSEI: YESBANK) shares tanked by the most intraday on record after the lender reported an unexpected quarterly loss. Yes Bank announced that it incurred a loss of 15.07 billion rupees ($216 million) during the first quarter while analysts expected profit of 10.2 billion rupees. The unexpected quarterly loss comes shortly after the appointment of Ravneet Gill to CEO of the lender. Yes Bank is rated “Unattractive” in our India All-Cap Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • Baker Hughes (BHGE) shares slipped after the company’s first quarter revenue of $5.62 billion met the average analyst estimate of $5.62 billion. Cash flow from operations for Baker Hughs during the first quarter came in at $184 million, falling from $294 million a year prior. Baker Hughes is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Clariant AG (SWX: CLN) will move forward with the sale of its pigments business only after the company separates the business into a separate entity. According to CFO Patrick Jany, the pigments business has several legal entities across the world that make the groundwork for a sale of the unit more complex. Clariant is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Elementis (LSE: ELM) shares slid by double-digits after the company announced that it expects FY2019 results to be, “slightly,” below analyst expectations. According to UBS analyst Andrew Stott, the company’s margins are struggling against a tough backdrop of the Chinese market. Still, Stott highlighted that Elementis trades at a 35% discount to its specialty chemicals peers, which should limit downside. Elementis is not rated in our Global Top Stock Ideas.
  • Transocean (RIG) reported first quarter results better than expected.  Transocean’s first quarter loss of 30 cents per share was better than the 32 cents loss expected.  Transocean reported a backlog of $12.1 billion, down from $12.5 billion a year ago.  Contract drilling revenue of $754 missed the $763 million consensus.  First quarter rig utilization of 56% was an improvement from 52% a year ago.  Transocean is not rated in our Global Top Stock Ideas

Global Health Care Stocks Trending in the News

  • Amgen (AMGN) reported earnings that beat expectations.  First quarter adjusted EPS of $3.56 beat consensus of $3.47.  Amgen first quarter revenue of $5.56 billion matched $5.57 billion consensus.  Amgen upped full year EPS guidance to $13.25 to $14.30, up from $13.10 to $14.30; full year revenue guidance is $22 billion to $22.9 billion.  Amgen is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • CVS Health Corp (CVS) reported first quarter earnings and guidance that beat consensus.  CVS delivered first quarter adjusted EPS of $1.62, ahead of $1.51 expected.  First quarter same store sales grew 3.8%, well above the 2.6% consensus.  First quarter revenue of $61.65 billion topped $60.24 billion consensus.  CVS gave bullish guidance, saying it sees full year EPS in the range of $6.75 to $6.90, up from $6.68 to $6.88.  CVS sees full year revenue of $251.2 billion to $254.4 billion, up from $249.9 billion to $254.3 billion.  CVS Healthcare is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Eli Lilly (LLY) reported first quarter earnings and revenue that were largely in line with consensus.  Eli Lilly first quarter EPS of $1.33 came a touch above the $1.30 expectation.  First quarter revenue of $5.09 billion was in line with $5.13 billion consensus.  Eli Lilly gave full year revenue guidance of $22 billion to $22.5 billion.  Full year EPS guidance is $5.60 to $5.70 while present consensus is $5.63.  Eli Lilly is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Humana (HUM) reported first quarter earnings and revenue that beat consensus.  Humana posted first quarter adjusted EPS of $4.48, ahead of $4.29 expected.  Revenue in the first quarter was $16.11 billion, beating $15.76 billion consensus.  Humana hiked full year EPS guidance to $17.25 to $17.50, up from $17 to $17.50; present consensus is $17.45.  Humana is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas
  • PetIQ (PETQ) shares fell notably lower after short-seller Spruce Point published a note warning that, “investors should proceed with extreme caution,” in the animal health company. Spruce Point highlights that PetIQ has historically missed nearly all prior financial projections. Spruce Point sees between 75% and 90% downside with PetIQ. PetIQ is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas.
  • Pfizer (PFE) reported first quarter earnings and revenue that beat consensus.  Pfizer first quarter EPS was 85 cents while consensus was 76 cents.  Pfizer reported revenue of $13.12 billion in the first quarter, ahead of $12.99 billion consensus.  Pfizer provided full year EPS guidance of $2.83 to $2.93, up from $2.82 to $2.92; consensus is $2.89.  Pfizer is rated “Attractive” 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