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Global Stocks Trending in the News for May 16th, 2019

May 16, 2019

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Global Consumer Stocks Trending in the News

  • Beyond Meat (BYND) has seen its share price rally strongly post-IPO.  Beyond Meat is trading over $88 while the highest price target in the market is $81.  Beyond Meat has surged over 250% since its recent IPO as investors bet the demand for meat alternatives will grow strongly.  Beyond Meat is not yet rated in our Global Top Stock Ideas
  • Children’s Place (PLCE) shares plunged after management said revenue in May is facing “a vacuum.”  Children’s Place at the same time increased full-year EPS guidance to $5.75 to $6.25, consensus is presently $5.58.  Children’s Place is citing poor weather for the sudden drop in revenue it is seeing this Spring.  Children’s Place is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Jack in the Box (JACK) reported fiscal second quarter adjusted earnings that beat consensus.  Jack in the Box reported fiscal second quarter adjusted EPS of 99 cents, beating consensus of 80 cents.  Second quarter revenue of $215.7 million beat consensus of $209.8 million.  Jack in the Box posted same store sales growth of 0.2% beating consensus of a 0.1% drop.  Jack in the Box is rated “Attractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Kering Group (KER) announced it will no longer work with models under 18 years of age.  Kering said this will apply to both live fashion shows and photos.  Kering had announced last year that it would no longer work with models under 16.  The effort is part of a movement to improve the treatment of models across the industry.  Kering (ENXTPA:KER) is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas
  • Macy’s (M) reported total same store sales growth of +0.7% beating consensus of +0.3%.  Macy’s reported same stores sales growth at company owned stores of +0.6% while consensus was for a drop of 0.1%.  Macy’s adjusted EPD of 44 cents beat 32 cents consensus.  Total sales of $5.5 billion matched consensus.  Macy’s is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Nestle (SWX:NESN) has entered exclusive talks to sell its skin-health business to private-equity firm EQT and the Abu Dhabi Investment Authority, the WSJ is reporting.  This is the first concrete move from Nestle since it announced in September its plans to reshape its portfolio of products in an effort to spur growth.  The general plan is to focus more on coffee, pet care, and consumer health.  Nestle said it expects to close a deal in the second half of 2019.  Nestle in rated “Attractive” in our European Large-Cap Global Top Stock Ideas.
  • Restaurant Brands (QSR) is under pressure from investors to improve performance, the WSJ is highlighting today.   Restaurant Brands, the owner of Burger King, Popeyes, and Tim Hortons, saw years of strong growth after Brazil’s 3G Capital acquired it.  But growth is stalling and recent promotions have failed to spark sales growth, irking investors seeking better performance.  Restaurant Brands is rated “Top Buy” in our Canada All-Cap Global Top Stock Ideas.
  • Sony (SNE) announced its second share buyback this year.  Sony approved a buyback of up to 200 billion yen.  Sony could buy back up to 4.8% of its outstanding shares if fully implemented.  Sony is responding to activist investors who have demanded buybacks.  Sony is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas.
  • The Stars Group (TSX: TSGI) announced quarterly financials that contained an adjusted EPS that missed the average analyst estimate. Stars Group observed adjusted earnings of $0.38/share while analysts had expected $0.41/share. Stars Group’s revenue during the first quarter of $580.4 million came well below analyst expectations of $613.1 million. Stars Group is rated “Neutral” in our Canada All-Cap Global Top Stock Ideas.
  • Tata Motors (BSE: 500570) shares traded lower after Jaguar Land Rover CEO Ralf Speth said that he could not confirm if there were ongoing discussions between Tata Motors and PSA Group, the French maker of Peugeot cars. In the past, Tata Motors has made clear their desire to build towards electric vehicles. Tata Motors is not rated in our Global Top Stock Ideas.
  • Telsa (TSLA) saw one of its biggest investors sell most of its position in the stock.  T. Rowe Price had been one of Tesla’s biggest investors since going public but recently unloaded 81% of its holdings in Tesla.  The paring down if its position comes in the wake of a 30% drop in Tesla’s share price in 2019.  Tesla is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas
  • Thomas Cook (LSE:TCG) warned it will be another tough summer for the company.  Thomas Cook said it is selling its airline as it struggles with weak demand due to a number of factors.  Thomas Cook will receive a 300 million pond rescue loan to help with its liquidity crunch.  Thomas Cook is rated “Top Short” in our United Kingdom Global Top Stock Ideas
  • Walmart (WMT) reported earnings that beat consensus.  Walmart reported first quarter adjusted EPS of $1.13, ahead of $1.02 expectation.  Revenue of $123.9 billion trailed $124.9 billion consensus.  Comparable sales grew 3.4% y/y matching consensus.  Walmart saw e-commerce sales grow 37% y/y.  Walmart is rated “Attractive” 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

  • Alibaba (BABA) reported earnings and revenue that beat consensus.  Alibaba posted revenue of 93.5 billion yuan, beating consensus of 91.7 billion yuan.  Adjusted earnings per share of 8.57 yuan well above consensus of 6.50 yuan.  Alibaba provided revenue guidance for the year of 500 billion yuan, trailing the 509 billion yuan.  Alibaba said its recommendation-based advertising is working well and driving revenue growth.  Full year revenue grew 51% to 376.8 billion yuan.  Core commerce business grew 54% to 78.9 billion yuan and cloud revenue grew 76% to 7.7 billion.  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas
  • Applied Materials (AMAT) was upgraded at Susquehanna to positive from neutral.  Applied Materials saw its price target hiked to $60 from $34.  Susquehanna said through its channel checks it sees “major wins” for Applied Materials in memory design and that should put it on track for EPS of $5 in the second half of 2019.  Applied Materials is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Cisco Systems (CSCO) reported solid fiscal third quarter revenue earnings, a touch above consensus.  Cisco reported fiscal third quarter EPS of 78 cents, beating consensus of 77 cents.  Revenue of $12.96 billion beat consensus of $12.87 billion.  Cisco gave bullish guidance, saying fiscal fourth quarter revenue should grow 4.5% to 6.5%, to $13.2 billion to $`3.5 billion; consensus is $13.3 billion.  Cisco Systems is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.  
  • Facebook (FB) said it will not allow people who recently posted terrorist propaganda to use its live streaming service.  Facebook said it will have a “one strike” rule with these types of infractions.  This is the most concrete move Facebook has made to potentially limit use of its live stream service since the massacre in New Zealand that was streamed live on Facebook.  Facebook is rated “Attractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Microsoft (MSFT) warned a bug in an older version of Windows that it has patched could be used as super-bug.  Microsoft said it could be used globally to wreak havoc much in the way the WannaCry worm did 2 years ago.  Microsoft added it has not seen anyone use the flaw maliciously yet but now that it has brought it to the public’s attention it expects someone will.  Microsoft is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Netease (NTES) reported first quarter earnings that beat the highest estimate.  Netease reported first quarter adjusted earnings per ADR of $3.48, beating consensus of $2.42.  Revenue in the first quarter of $2.74 billion trailed consensus of $2.67 billion.  Netease saw its stock upgraded at buy at China Renaissance with its price target hiked to $330.  Netease is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Scout24 (XTRA: G24) shares recouped yesterday’s loss after Liberum analysts wrote to clients that yesterday’s bid rejection by shareholders was the right decision. Liberum does not believe that the offer proposed by Helman & Friedman and Blackstone accurately reflected the true value of the company. As a result of voting down the attempted bid, Liberum upgraded Scout24 shares from hold to buy. Scout24 is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.
  • Tencent (TCEHY, SEHK:700) reported quarterly earnings that beat expectations.  Tencent reported net income of 27.21 billion yuan well above 19.4 billion consensus.  Net income included 11.1 billion yuan in gains from investee companies.  Tencent’s fintech unit saw sales grow 44% to 21.8 billion yuan, this is the first time the company is breaking out those results.  Revenue from its online games and messaging unit grew just 4.5% given the lack of approvals for new games from Chinese authorities over the last year.  Tencent is rated “Top Buy” in our China All-Cap Global Top Stock Ideas
  • Walt Disney (DIS) confirmed that the next installments of “Star Wars,” after the Skywalker installments, will be scripted by the creators of “Game of Thrones.”  David Benioff and DB Weiss, creators of “Game of Thrones,” will lead the effort for a film to debut in 2022.  With the last season of “Game of Thrones” being met with mixed reviews, the decision to choose them for the next Star Wars films seems like less of a good idea that it would have a few months ago.  The last Skywalker-themed film will be released this December.  Walt Disney is rated “Attractive” in our US Large-Cap and “Attractive” in our US Information Technology 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 Industrials Stocks Trending in the News

  • Boeing (BA) was left to do the final safety assessment of the flight control systems on the 737 Max certification, it has been learned.  It is the flight control system that has been implicated in the 2 crashes of the 737 Max.  Boeing did not include the MCAS flight control system in the list of critical systems that could cause a catastrophic failure on the plane.   Boeing is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.  
  • General Electric (GE) won the most orders in the first quarter for its gas-fired power plants.  GE won 6 orders for its advanced HA-class turbines, according to a Reuters report.  No other manufacturer won as many in the quarter.  GE also won three additional orders that were not included in earnings.  General Electric is rated “Top Short” in our US Large-Cap and “Top Short” in our US Industrials Global Top Stock Ideas.  

Global Financials Stocks Trending in the News

  • Citigroup (C) is joining with India’s digital payments start-up Paytm to issue the start-up’s first physical credit card.  Paytm has 350 million users and is the leader in digital payments in India.  Citigroup has been looking for ways to boost its consumer business and partnering with digital start-ups is key to its strategy.  Citigroup is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • New York Community Bancorp (NYCB) is trading lower on proposals in the New York State Legislature to strengthen rent control laws in favor of tenants.  The New York State Legislature is not completely controlled by Democrats who have made clear their plans to make life harder for building owners.  New York Community Bancorp is the most exposed bank in New York state to multi-family building lending, according to Wedbush, as is likely to suffer with lower loan and re-financing demand.  New York Community Bancorp is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

Global Health Care Stocks Trending in the News

  • Agilent Technologies Inc. (A) shares fell by the most intraday in 11 years after the company announced fiscal second quarter financial results that missed the average analyst estimate while lowering FY2019 guidance. Agilent Technologies generated adjusted earnings of $0.71/share in the fiscal second quarter while consensus was for $0.72/share. Agilent also lowered FY2019 revenue guidance from between $5.09 billion and $5.13 billion to between $5.15 billion and $5.19 billion. Agilent Technologies is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Takeda Pharmaceutical (TSE: 4502) and Frazier Healthcare Partners have announced a deal to jointly launch Phatom Pharmaceuticals, a venture that will focus on novel treatments for GI diseases and related disorders. As a part of the venture, Takeda will grant licenses to Phatom for the development and commercialization rights of vonoprazan in the US, Europe, and Canada in exchange for cash, equity, and future cash milestones and royalties. Takeda Phamaceuticals is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Tilray (TLRY) reported first quarter revenue that beat consensus.  Tilray reported first quarter revenue of $23 million, beating consensus of $21.4 million.  Tilray reported a first quarter loss of 32 cents per share.  Tilray sold 3,012 total kilograms in the first quarter.  Tilray 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