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Global Stocks Trending in the News for May 13th, 2019

May 13, 2019

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Global Consumer Stocks Trending in the News

  • Anheuser-Busch InBev (BUD) formally filed for an IPO for its Hong Kong unit.  Anheuser-Busch is targeting a $70 billion valuation and stated in its filing that it is the largest beer company in Asia Pacific.  The IPO is being targeted for July and the unit is called Budweiser Brewing Company APAC Ltd.  Anheuser-Busch InBev is rated "Neutral" in our European Large-Cap Global Top Stock Ideas
  • Booking Holdings Inc. (BKNG) shares traded notably higher after better-than-expected hotel nights metrics casted away doubt from Street analysts’ outlook regarding company guidance.  Jefferies analyst Brent Thill wrote to clients regarding the earnings, “As growth in the traditional hotel business continues to decelerate we are confident in BKNG’s plan to continue expanding its alternative accommodations business.” Booking Holdings is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • JD.com Inc. (JD) shares edged higher after China’s second-largest e-commerce operator announced revenue that topped analyst estimates. JD.com observed revenue of 121.1 billion yuan ($18 billion) during the first quarter that was ahead of consensus for 120 billion yuan. JD.com’s bottom-line income of 1.2 billion yuan also beat out consensus expectations for a loss of 244.7 million yuan. JD.com is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Marriott International (MAR) reported first quarter earnings that beat consensus.  Marriott posted first quarter EPS of $1.41, beating consensus of $1.34.  First quarter revenue of $5.01 billion trailed consensus of $5.13 billion.  Marriott gave EPS guidance for the second quarter of $1.52 to $1.58 while consensus is $1.62.  Full year EPS guidance of $5.97 to $6.19, consensus is $6.09.  Marriott International is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Nvidia (NVDA) saw its price target raised to $170 from $148 at Morgan Stanley.  Nvidia’s equal-weight rating was maintained.   Nvidia could deliver upside on its gaming chips business as the bar is set very low there.  Morgan Stanley writes that Nvidia has one of the better secular outlooks among chip stocks.  Nvidia is rated “Top Short” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Roku Inc. (ROKU) shares surged to an all-time high after the video streaming platform announced first quarter revenue and a FY2019 outlook that was ahead of analyst expectations. From their December low, Roku shares are up nearly 200%. The first quarter financials prompted a slew of Street analysts to raise their price targets for Roku shares. Roku is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Walt Disney (DIS) again rule the box office this past weekend with its “Avengers” film still #1 in ticket sales.  “Avengers” has hauled a total, so far, of $723 million in US ticket sales with a global total of $2.49 billion.  That total leaves it about $300 million behind the all-time top-grossing film, “Avatar.”  Walt Disney is rated “Attractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas

Global Information Technology and Communication Services Stocks Trending in the News

  • Motorola Solutions (MSI) received a favorable court ruling related to patents.  The US Patent and Trademark Office upheld Motorola’s patents after Hytera Communications (SZSE:002583) challenged their validity with the Patent Office.  The Patent Office rejected all claims submitted by Hytera in its written ruling.  Motorola Solutions is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.  Hytera Communications is not rated in our Global Top Stock Ideas.
  • Symantec (SYMC) CEO Greg Cark unexpectedly quit, sending shares of Symantec tumbling.  No specific reason was given but Symantec has struggled to make its enterprise security business grow, the unit is the majority of Symantec’s revenue.  Starboard Value LP, the activist hedge fund, bought 5% of the company and has stated its intention to shake up management of the company.  Richard Hill will take over as interim CEO.  Symantec also cut revenue guidance for the rest of the year.  Symantec is rated “Attractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Tenneco Inc. (TEN) shares fell by the most intraday in almost a decade after the company hit a triple-whammy with its first quarter earnings release. Tenneco reported quarterly financials that trailed analyst estimates, cut back its FY2019 guidance, and announced a spin-off of its aftermarket auto parts business. Tenneco lost more than a third of its total market value initially on the news. Tenneco is rated “Attractive” in our US SMID-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Viacom (VIAB) reported fiscal second quarter sales that trailed consensus.  Viacom second quarter sales of $2.96 billion trailed $3.05 billion consensus.  Earnings beat with EPS of 95 cents beating 80 cents consensus.  Viacom saw a drop in international revenue that was the main source of its miss.  No update was given on its potential merge with CBS Corp. (CBS).  Viacom is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.  CBS Corp. is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Zillow Group Inc. (ZG) shares rallied after the company reported first quarter financial results that broadly beat analyst expectations. The broadly strong financials from Zillow led at least five Street analysts to hike their price targets for shares. Despite the initial positive reactions, Bloomberg and Barclay’s both warned that the reaction could be overly optimistic. Zillow initially opened 17% higher in Friday trading before retracing gains to about +5% positive intraday. Zillow Group is not rated in our Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Aeroports de Paris (ENXTPA: ADP) shares fell after being downgraded by JPMorgan, Santander, and Goldman Sachs following the delay of the privatization of the airport operator due to a court ruling. Analysts downgraded the stock because they saw the government embarking on a competitive privatization process of Aeroports de Paris, which appears to no longer appears to be the case. Aeroports de Paris is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.
  • Boeing (BA) could see its 737 Max aircraft return to service as soon as this summer.  Boeing, however, will have a challenge convincing passengers and airlines that the plane.  Industry watchers agree this will be one of the greatest consumer-relations challenges in decades.   It is likely the grounding will be lifted in June with the planes returning to service later in the summer.  Boeing is rated “Top SHort” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Equifax (EFX) reported first quarter earnings in line with consensus.  Equifax reported first quarter adjusted EPS of $1.20, matching consensus.  Equifax provide adjusted EPS guidance of $1.32 to $1.37 while consensus with $1.50.  Full year adjusted EPS guidance is $5.60 to $5.80.  Equifax is rated “Unattractive” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Linde Plc (LIN) saw positive moves by 2 banks, with Deutsche Bank raising its target and BMO upgrading the stock.  Deutsche Bank hiked its price target to $205 from $190, maintaining its buy rating, saying it sees a solid 2019 ahead.  BMO upgraded Linde to outperform from market perform.  BMO also hiked its price target to $210 from $178.  Linde is not rated in our Global Top Stock Idea
  • Lockheed Martin (LMT) said if India decides to buy its new F-21 fighter jet, Lockheed will not sell the jet to any other country, as it tries to win the mega-order for 114 planes.  Lockheed has said that if it wins the deal, Lockheed will help India to develop its defense industry together with local players.  Lockheed Martin is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • ThyssenKrupp (XTRA:TKA) has abandoned its plan to split itself, separating its steel and capital goods businesses.  Since its announcement in September its stock has fallen 45%, reaching a 15-year low.   ThyssenKrupp is considering a listing of its prized asset, its elevator business.  ThyssenKrupp expects to make a final decision about that listing in the coming months.  ThyssenKrupp is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Uber (UBER) placed its IPO at $45 per share, near the low end of the price range.  The price range was $44 to $50.  The IPO is raising $8.1 billion for Uber and values the company at about $82 billion.  Uber’s IPO makes it the highest valued IPO since Alibaba (BABA) in 2014.  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.  Uber is not yet rated in our Global Top Stock Ideas.

 

 

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Global Financials Stocks Trending in the News

  • Citibank (C) is intensely focused on digital banking, convinced that is the best way for it to grow.  Citibank has been shrinking its footprint while other players have expanded.  Citibank added over $1 billion in the first quarter with the vast majority coming from new customers.  More importantly, over half came from people who did not live close to a bank branch, reinforcing its decision to focus on digital and not physical locations.  Citibank is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Tradeweb (TW) reported first post-IPO results that came a touch above consensus.  Tradeweb reported first quarter adjusted EPS of 23 cents, ahead of 22 cents consensus.  First quarter revenue of $186.8 million was a touch more than $186.0 million consensus.  Tradeweb declared its first quarterly dividend of 8 cents per share.  Tradeweb saw a 34% growth in volume versus a year ago.  Tradeweb is not rated in our Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • Buckeye Partners LP (BPL) shares soared by more than 25% after the IFM Global Infrastructure Fund announced the acquisition of the owner and operator of oil pipelines and terminals for $6.5 billion. The acquisition price of Buckeye represents a 27.5% premium on Thursday’s share closing price. Buckeye Partners is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Royal Dutch Shell (LSE:RDSA) was upgraded to buy at HSBC.  Shell is set up for an extended period of growing free cash flow which should lead to greater cash distribution for shareholders.  HSBC is comfortable with Shell’s financial framework and likelihood for greater share buybacks.  Shell is rated “Top Buy” in our European Large-Cap and “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas
  • ThyssenKrupp (XTRA:TKA) has abandoned its plan to split itself, separating its steel and capital goods businesses.  Since its announcement in September its stock has fallen 45%, reaching a 15-year low.   ThyssenKrupp is considering a listing of its prized asset, its elevator business.  ThyssenKrupp expects to make a final decision about that listing in the coming months.  ThyssenKrupp is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Vale (VALE) announced it will take two to three years to reach its 400 million tons target it originally set for 2019.  Vale shuttered 93 million tons of production in the wake of its mine disaster.  Vale indicated little of that production is likely to return this year, pressuring ore iron prices which are about 30% higher.  Vale reiterated its 2019 production target of 307 to 332 million tons of production.  Vale is rated “Attractive” in our Brazil All-Cap Global Stock Ideas

Global Health Care Stocks Trending in the News

  • Care.com (CARE) announced that is it overhauling its business model and adding in-depth background checks for the caregivers who post on its site.  Care.com has 33 million members and will pay a third-party provider to check criminal histories of caregivers as well as verify their key personal data.  The changes come after the WSJ did a report about problems with caregivers on Care.com.  Care.com is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Teva (TEVA) is lower after 44 Attorneys General have filed a lawsuit against the company.  Teva is alleged to have artificially inflated prices on generic drugs.  Teva is the largest generic drug maker in the US and the lawsuit alleges it manipulated the prices on over 100 different medications.  The lawsuit was filed in Connecticut and the AG there said the investigation unearthed evidence that implicated 20 companies.  Teva is not rated in our 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