blog

Latest from the Quantamize Blog

Global Stocks Trending in the News for May 22nd, 2019

May 22, 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

  • Advanced Auto Parts (AAP) reported first quarter adjusted EPS that beat consensus.  Advanced Auto Parts reported first quarter adjusted EPS of $2.46 beating consensus of $2.37.  First quarter revenue came in line at $2.95 billion.  Advanced Auto Parts saw same store sales growth of 2.7% in the first quarter, trailing consensus of 2.9% growth.  Advanced Auto Parts gave full year revenue guidance of $9.65 billion to $9.8 billion.  Advanced Auto Parts is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • AutoZone (AZO) reported fiscal third quarter same store sales and earnings that beat consensus.  AutoZone reported fiscal third quarter EPS if $15.99, ahead of $15.11 consensus.  Same store sales grew 3.9%, beating 2.9% consensus.  AutoZone is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Avon Products (AVP) is close to a sale to Brazil’s Natura (NATU3), WSJ is reporting.  The boards of both companies have approved the deal that has been prepared over the past months.  The deal would mark the end of Avon’s independence, one of America’s best known companies over the past decades.  Avon has seen sales suffering and the deal is its best survival option.  Avon Products is not rated in our Global Top Stock Ideas.  Natura is rated “Attractive” in our Brazil All-Cap Global Top Stock Ideas.
  • Ford (F) hopes to be testing delivery robots being deployed from self-driving cars within the next year.  Ford is partnering with robotic start-up Agility Robots developing walking robots that can deliver packages to homes.  The companies will run a test program with Agilent’s robots and Ford vans.  The program is part of Ford’s push into autonomous vehicles.  Ford is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Harley-Davidson (HOG) is starting to use loans to drive sales, a more aggressive move for Harley.  Harley will introduce about 100 new models by 2027 and will use loans to drive sales to new customers it anticipates will be younger and less well-off than its stable of aging customers.  The risk for Harley is an uptick in delinquencies that could hamper results.  Harley-Davidson is rated “Attractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Home Depot (HD) reported first quarter earnings that beat with same store sales that trailed consensus.  Home Depot reported first quarter EPS of $2.27 beating consensus of $2.18.  First quarter revenue of $26.38 billion came in line with $26.4 consensus.  Same store sales in the first quarter grew 2.5% trailing consensus of 4.3%.  Home Depot reaffirmed full year EPS guidance of $10.03, a touch below consensus of $10.09.  Home Depot is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • JC Penny (JCP) reported a loss that was wider than expected.  JC Penny first quarter adjusted loss of 46 cents came worse than the 38 cents expected.  First quarter same store sales fell 5.5%m worse than the 3.8% drop expected.  JC Penny first quarter net sales of $2.44 billion came in line with consensus of $2.47 billion.  Inventory dropped 16% in the quarter.  JC Penny is rated “Unattractive” in our US SMID-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Kohl’s (KSS) reported first quarter same store sales that came well below consensus.  Kohl’s first quarter same store sales fell 3.4%, much worse than the 0.1% fall that was expected.  First quarter EPS of 61 cents trailed 67 cents consensus.  Total sales of $3.82 billion also trailed consensus of $3.93 billion.  Kohl’s cut full year EPS guidance to $5.15 to $5.45, down from $5.80 to $6.15 while present consensus is of $6.04.  Kohl’s is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Lowes (LOW) cut guidance, raising doubts about its turnaround efforts.  Lowes cut full-year EPS guidance to $5.54 to $5.74, down from previous $6.00 to $6.10.  Lowes said, “The consumer is healthy” and that its plan is in its early stages.  Lowes anticipates cutting next years earnings guidance too.  Lowes is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Nike (NKE) has called the recently enacted tariffs on Chinese imports “catastrophic” in an open letter to President Trump.  Tariffs on footwear would be part of the next round of tariffs and Nike with 173 other companies pleaded with the President to not act further.  There is much less production of shoes in China than was the case a few years ago, but the companies argue it would still be terrible if fully implemented.  Nike is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Target (TGT) reported first quarter same store sales, revenue and earnings that beat consensus.   Target reported first quarter same store sales growth of 4.8%, topping consensus of 4.3%.  First quarter revenue of $17.63 billion beat $17.43 billion consensus.  First quarter adjusted EPS of $1.53 beat consensus of $1.43.  Target provided second quarter EPS guidance of $1.52 to $1.72.  Target sees second quarter same store sales growth in the low- to mid-single digits.  Target is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.   
  • Tesla (TSLA) received some unpleasant news yesterday from Morgan Stanley when it laid out its bear case scenario with a $10 price target.  Tesla’s main problem is demand and Morgan highlights the fear that the market could be saturated with its main product.  The previous bear case for Tesla was $97.  Morgan writes, “Tesla has grown too big relative to near term demand.”  Tesla is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • TJX Companies (TJX) reported first quarter same store sales that beat consensus.  TJX first quarter sale store sales grew 5% while consensus was for 3.5%.  First quarter EPS of 57 cents beat 55 cents consensus.  TJX boosted full year EPS guidance to $2.56 to $2.61.  TJX 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

  • Baidu (BIDU) is planning to spin off its autonomous driving unit according to early reports that shortly follow the company’s first quarterly net loss since going public in 2005. According to reports, Baidu is seeking external investors amid the business’ increased financial pressures. Baidu is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Facebook (FB) should hire a new CEO and get rid of stock compensation, according to its ex-chief security officer, Alex Stamos.  Facebook has too much power, he argues, and the company should be broken into pieces to limit its power.  Stamos adds that a breakup would not fix Facebook’s broken culture which he sees at the root cause of most of its problems.  Facebook is rated “Attractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas
  • Marvell Technology Group (MRVL) shares edged higher after announcing the acquisition of Avera Semiconductor’s chip design unit for $650 million in cash. The acquisition will reportedly introduce the capability for Marvell Technology to produce specialized semiconductors required by 5G phone networks and cloud-data centers. International Business Machines Corp. (IBM) formerly owned the business unit before selling it to Globalfoundries in 2015. Marvell Technology is not rated in our Global Top Stock Ideas. IBM is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Qualcomm (QCOM) violated anti-trust law with its business practices, a federal judge has ruled.  Qualcomm used its dominant market position to charge excessive licensing fees.  “Qualcomm’s practices have strangled competition,” the judge wrote in a ruling that agreed with FTC findings.  Qualcomm charges a percentage of the sale price of the phone, a practice the judge found excessive.  Qualcomm is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas
  • Sony’s (SNE) CEO laid out his full long-term vision for the company at the company’s investors day.  Sony is working on a successor to the PS4.  The new console with permit remote-play on cell phones and tablets and will have load times 10 times faster than the present console.  Sony is not investing aggressively in China given the country’s uncertain censorship scenario.  Sony is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas. 
  • T-Mobile US Inc. (TMUS) and Sprint Corp. (S) shares both soared after Federal Communications Commission (FCC) Chairman Ajit Pai announced that he will recommend his agency approve the $26.5 billion merger of the two telecommunications companies. The Department of Justice does not like the deal as presently structured and Sprint may need to make further concessions.  According to Paul Gallant of Cowen & Co., however, approval from the US Justice Department “seems likely” as it has never diverged from the FCC’s decision. T-Mobile is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas. Sprint is rated “Top Short” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Astaldi Spa (BIT: AST) shares jumped following reports that the company and its Turkish partner IC Yatirim Holding AS have resumed talks to sell a bridge linking Europe and Asia to a group of Chinese investors. The reports shortly follow the resolution of a dispute relating to toll charges. The two parties are in talks with a consortium of Chinese investors led by China Merchants Group, according to reports. Astaldi is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.
  • Boeing’s (BA) 737 Max crash involving Ethiopian Airlines was likely caused by a bird strike to a suspected sensor, WSJ reports.  The sensor in the Boeing 737 Max in question, part of the MCAS system, does not have a back-up source of information in the event there is a problem with it.  The addition of a back-up is part of the modifications Boeing is testing.  Boeing is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.  
  • Crane Co. (CR) is making a hostile bid for rival Circor International (CIR).  Crane is making an all-cash offer valued at $1.7 billion, according to press reports.  Crane tried to privately acquire Circor earlier in the year but was rebuffed by management.  Crane is not taking the offer directly to shareholders.  Crane is rated “Top Buy” in our US SMID-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas.  Circor International is rated “Neutral” in our US SMID-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.  
  • Lockheed Martin (LMT) is locked in a battle with the Pentagon that is jeopardizing funding for spare parts for the F-35.  The Pentagon wants Lockheed Martin to sell it technical data related to the spare parts, data that will allow it to have other manufacturers make the parts as it attempts to contain costs.  Lockheed has yet to sign an agreement relating to this and without one, half of the funding for spare parts is being withheld.  Lockheed Martin is rated “Attractive” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.  
  • Royal Mail (LSE: RMG) shares slid to a record low prior to its FY2019 results which Jefferies believes will be weighed down by deteriorating revenue trends and rising cost pressures. Jefferies expects Royal Mail to report a 26% y/y decrease in operating profit to between 500 million pounds and 530 million pounds. The company’s progressive dividend policy may also face challenges as a result. Royal Mail is rated “Top Short” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Senvion (DB: SEN) shares soared following reports that cited unidentified people familiar with the matter that Toshiba (TSE: 6502), Siemens AG (DB: SIE), and Blackstone (BX) are among the parties interested in acquiring the distressed maker of wind turbines. According to reports, Senvion has hired Rothschild to advise on the sale of the company prior to insolvency proceedings that begin on July 1st. Senvion is not rated in our Global Top Stock Ideas. Toshiba is not rated in our Global Top Stock Ideas. Siemens is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. Blackstone is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • United Airlines (UAL) saw its price target hiked to $110 from $101 at Morgan Stanley.  Its buy rating on United Airlines was reiterated.  Morgan said of United, “…United has done a solid job executing on its mid-continent strategy” and expects the strong performance to continue.  United will have significant competition near-term in those new markets.  United Airlines is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Industrials 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

  • China CITIC Bank (SEHK:998) and Baidu (BIDU) are seeking up to 7 billion yuan in private funding in its first round of funding for its digital bank, aiBank.  China CITIC and Baidu launched the online bank in 2015 and are seeking funding to drive growth.  aiBank provides personal loans of up to 300,000 yuan with no collateral.   China CITIC Bank is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Commerzbank’s (DB:CBK) CEO indicated the bank may be open to a merger with another bank after its attempts at a tie-up with Deutsche Bank (DB:DBK) collapsed.  Commerzbank will unveil a new plan for strategy plan in the fall but its CEO made clear one option is a merger with another German or European bank.   A number of other European bank have shown interest so that option exists if management thinks it makes sense.  Commerzbank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  Deutsche Bank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Eaton Vance (EV) shares traded higher after the company announced adjusted earnings in the fiscal second quarter that beat the highest analyst estimate. Eaton Vance observed adjusted earnings of $0.89/share that came ahead of all analysts estimates ranging between $0.71/share and $0.82share. Eaton Vance’s revenue of $411.9 million in the fiscal second quarter, however, fell from $414.3 million a year prior although it beat consensus of $409.4 million. Eaton Vance is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Morgan Stanley (MS) is planning to make job cuts at its London equities business, according to reports that cite people familiar with the matter. According to reports, five Morgan Stanley employees at the firm’s equities trading and sales business in London have already been affected. The news follows Morgan Stanley earnings, which contained equities revenue that trailed the average analyst estimate. Morgan Stanley is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • Lynas Corp. (ASX: LYC), China’s largest producer of rare earth products outside of China, told investors that it plans to increase output and extend its footprint to the US. Lynas shares soared by more than 20% on the news that shortly follows worries China will weaponize its leading status in the rare earth metals industry in trade negotiations with the US. Lynas intends to double its output of rare earths neodymium and praseodymium by 2025. Lynas is rated “Unattractive” in our Australia Large-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Merck & Co. (MRK) announced the acquisition of Peloton Therapeutics Inc. for up to $2.2 billion in cash and other payments just a day before the company planned to IPO.  Merck will pay $1.05 billion in cash for the developer of cancer therapies in addition to $1.15 billion of additional payments based on the success of Peloton’s experimental drugs that will be further developed by Merck. Analysts expected Peloton to IPO at a market value of roughly $756 million. Merck & Co. 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