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Global Stocks Trending in the News for June 4th, 2019

Jun 04, 2019

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Global Consumer Stocks Trending in the News

  • Constellation Brands (STZ) suffered greatly after the US announced potential tariffs on imports from Mexico.  Constellation Brands’ imports Corona and Modelo products and hiking tariffs on its products are sure to cause it pain.  Two-thirds of Constellation Brands’ revenue come from beer and alcohol it produces in Mexico.  Constellation Brands is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Staples Global Top Stock Ideas.  
  • Intralot (ATSE: INLOT) shares fell to their lowest level since 2016 after the company posted “weak” earnings in the fiscal first quarter, accord to Lucror analysts. Group sales for Intralot fell 8.5% y/y while gross profit dropped 15% from a year prior. Intralot is not rated in our Global Top Stock Ideas.
  • Johnson & Johnson (JNJ) was ordered by a NYC jury to pay an additional $300 million in punitive damages to a woman who blamed her rare cancer on its talc powder.  The actual damages verdict in the trial was $25 million, so with the punitive damages award the total is $325 million that Johnson & Johnson has been ordered to pay.  The lawsuit is one of thousands that Johnson & Johnson faces over its talc powder alleging causing cancer.  Johnson & Johnson is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Lyft (LYFT) shares rose sharply in the wake of JP Morgan reiterating its buy rating and $86 price target.  JP Morgan sees 50+% upside for Lyft and recommended the present price level, ~$40, as a good entry point.  Lyft has a number of high-growth, high-margin opportunities in its business and expects the market to reward it for them.  Lyft is not rated in our Global Top Stock Ideas
  • Tesla (TSLA) is likely to see a recovery is sales in 2020 after recently disappointing sales news, Morgan Stanley writes.  This comes just a month after Morgan said the worst-case scenario for Tesla includes a $10 price target.  Morgan is maintaining its equal-weight rating and $230 price target.  Morgan sees a revenue jump in 2020 as the Model 3 enters new markets.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.    
  • Tiffany (TIF) reported first quarter same store sales that missed estimates with earnings that matched.  Tiffany first quarter same store sale in constant currency that dropped 2% while consensus was for a 1.2% drop.  Tiffany first quarter EPS of $1.03 came in line with consensus of $1.02.  Net sales of $1.0 billion came in line with $1.03 billion.  Tiffany boosted its quarterly dividend to 58 cents from 55 cents, trailing consensus of 60 cents.  Tiffany is rated “Neutral” 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

  • Advanced Micro Devices (AMD) will license its graphic designs to Samsung (KOSE:A005930) for use in its smartphones.  AMD will license its designs for use in a segment of the market where it presently is absent.  The deal could potentially supply hundreds of millions of dollars in revenue to AMD, sending the shares sharply higher.  Samsung will get cutting-edge graphics as it seeks to differentiate its phones.   Advanced Micro Devices is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Information Technology Global Top Stock Ideas.    Samsung is not rated in our Global Top Stock Ideas 
  • Alibaba (BABA) was initiated at Loop Capital with a buy at Loop Capital and a price target of $250.  Alibaba is described as the world’s most complete digital retail ecosystem by Loop Capital.  Alibaba is Loop’s favorite tech stock, which they call their “favorite among internet mega-cap stocks.”   Alibaba is the “best play in China’s pivot to consumerism.”  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Alphabet’s (GOOGL) Google is gearing up for a legal battle with the US Justice Department.  The US government has indicated it is preparing to investigate the company over potential anti-trust concerns.  As Google has grown larger and more powerful in the age of data, many critics think it’s too powerful, especially with its internet search dominating the market.  No idea how long this could last.  Alphabet is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.    
  • Apple (AAPL) will fall under the jurisdiction of the Justice Department IF the US government decides to investigate the company for anti-trust violations, the Justice Department said today.  Prominent tech companies are under immense scrutiny for a number of their practices and the concentration of “power,” as critics argue, in just a few.  The announcement was made while Apple executives were on stage at Apple’s developer conference.  Apple is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.    
  • AT&T (T) is making its plans to take on Netflix (NFLX) clear, Bloomberg reports, and it will be “more.”  AT&T’s media properties will produce considerably more content than they do presently.  AT&T is trying to unify the various media assets that it has in order to effectively attack Netflix’s position in the market.  AT&T is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.  Netflix is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Cree Inc (CREE) was downgraded to neutral from buy at BMO Capital Markets.  Cree has its price target maintained at $55.  Cree shares have run up 60% since October and BMO notes that the shares are fairly valued at this point, hence the downgrade.  Cree continues to execute well on its transformation, BMO adds.  Cree is rated “Top Short” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Facebook (FB) shares slid as much as 8% on news that the US Federal Trade Commission (FTC) will oversee an antitrust probe into whether the tech giant’s practices harm competition within the digital marketplace. The news follows an agreement between the FTC and the US Justice Department to divide antitrust oversight of US tech giants. Facebook is rated “Attractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas. 
  • Infineon Technologies AG (XTRA:IFX) agreed to acquire Cypress Semiconductor (CY) in a deal valued at $10.1 billion.  Infineon said after completing the deal it will be the largest supplier of chips to the automotive sector.  Infineon said the acquisition will also give it new growth avenues in industrial and consumer devices.   Infineon Technologies AG is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  Cypress Semiconductor is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Netflix (NFLX) was upgraded to buy from hold at Loop Capital.  Netflix “has built an unstoppable lead in subscription lead in subscription video streaming” that puts it in a strong position.  Loop raised Netflix’s price target to $425.  Netflix has room to expand margin as it become a provider of video to the world.  Netflix is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.    
  • Square (SQ) is having issues with sending receipts to wrong emails after completing transactions, WSJ is reporting.  WSJ documents many cases in which customers receive receipts for transactions they know nothing about involving other customers cards.  Square matches contact details with transaction details and often a mismatch causes erroneous emails to go out.  Square responded to the report saying it has cut errors by over 50% and is shooting to eliminate them completely.  Square is rated “Top Short” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas. 
  • Softbank (TSE:9984) is having trouble raising a second $100 billion for a second Vision Fund.  Softbank is looking to maintain its torrid pace if deal making and needs fresh investments to be able to continue.  WSJ reports the fundraising is being met with a chilly reception in an environment of choppy markets.  WSJ adds that many investors approached plan zero or very limited investments.  Softbank is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Tencent (SEHK:700) is investing in UK fintech company TrueLayer, joining a $35 million funding round, as it targets fintech startups.  TrueLayer develops open-banking software.  The software allows people to share of aggregate financial information from different providers.  TrueLayer is expected to use the funding to expand across Europe.  Tencent is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Uber (UBER) disclosed it is under tax investigation in the US and there are potential investigations in other markets.  Uber said the IRS is looking at its taxes from 2013 and 2014.  Uber said some states and other jurisdictions are looking at its taxes.  Uber said its tax benefits are likely to be cut due to the company’s “transfer pricing positions.”  Uber is not rated in our Global Top Stock Ideas
  • Western Digital (WDC) had its price target cut to $55 from $60 at Deutsche Bank while its rating of buy was maintained.  Deutsche cited uncertainty around the trade war that is expected to weigh on Western Digital.  Estimates were cut to reflect the growing uncertainty with the trade tensions.  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 (BA) suffered fresh bad news after US regulators said up to 150 parts in Boeing’s 737 Max aircraft’s wing may be defective.  Regulators said the parts do not pose an imminent crash threat.  Regulators said Boeing altered a manufacturing process that may make the parts weaker than they should be.  Boeing said it has yet to be notified of any problems with a batch of parts in questions.  Boeing is rated "Top Short" in our US Large-Cap and "Unattractive" in our US Industrials Global Top Stock Ideas. 
  • Caterpillar (CAT) saw its price target cut at UBS to $115 from $125 while maintaining the sell rating.  UBS expects cut to construction activity in both the US and China.  Some of that will be offset by increased mining activity.  UBS sees the potential for further cuts to estimates in 2020 if trade tensions persist.  Caterpillar is rated "Neutral" in our US Large-Cap and "Unattractive" in our US Industrials Global Top Stock Ideas. 
  • FedEx (FDX)  is being investigated by the Chinese government for “wrongful delivery of packages” in what is being considered the start of targeted retaliation against US companies as the trade war rages on.  Chinese state media made clear the actions are part of its blacklisting efforts against US companies active in China.  FedEx is rated "Unattractive" in our US Large-Cap and "Top Buy" in our US Industrials Global Top Stock Ideas. 
  • Johnson Controls (JCI) announced the results of its modified Dutch auction tender offer.  Johnson Controls expects to accept for payment about 102.32 million shares.  Johnson Control said its aggregate cost will be about $4.02 billion for the shares tendered.  Johnson Controls is not rated on our Global Top Stock Ideas
  • Kier Group Plc (LSE: KIE) shares fell the most intraday on record after the UK homebuilding company slashed its FY2019 profit outlook in half. Kier Group shares traded at their lowest level in more than 20 years. Kier Group CEO Andrew Davies explained that he is searching for ways to improve cash generation and lower debt. Kier Group is rated “Top Short” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Navistar (NAV) boosted revenue guidance to around 5% above analysts’ consensus.  Navistar sees full year revenue of $11.25 billion to $11.75 billion, up from $10.75 billion to $11.25 billion.  Navistar reported second quarter revenue that beat consensus.  Second quarter revenue of $3.0 billion beat consensus of $2.69 billion.  Navistar is rated "Neutral" in our US SMID-Cap and "Neutral" in our US Industrials Global Top Stock Ideas. 
  • Xiaomi Inc. (SEHK: 1810) shares tumbled following news that Chairman and CEO Lei Jun was given a stake worth HK$758 million in the smartphone maker by early stage investor Shunwei Capital. According to reports, Jun increased his shareholdings in the company by 79.1 million shares to 2.37 billion shares. Xiaomi is rated “Attractive” in our China All-Cap 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

  • Blackstone Group (BX) has agreed to acquire $18.7 billion in logistics assets from GLP Pte (SGX:MC0) of Singapore.   Blackstone seeks to leverage the growing e-commerce business’ needs for logistics services.  Blackstone will double its industrial footprint in the US with the acquisition.  Blackstone will gain 179 million square feet of warehouse space in the deal.  Blackstone Group is rated “Neutral” in our US Large-Cap Global Top Stock Ideas

Global Commodities & Energy Stocks Trending in the News

  • El Paso Electric (EE) has agreed to be acquired by an investment vehicle of JP Morgan (JPM) in a deal valued at $2.78 billion.  JP Morgan is paying $68.25 per shares, a 17% premium to Friday’s closing price.  With the economy in Texas booming and the grid operator warning of a lack of supply, the El Paso acquisition looks to benefit from that strength.  El Paso Electric Alphabet is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas

Global Health Care Stocks Trending in the News

  • Amgen Inc. (AMGN) shares jumped the most intraday since January after the company reported of early signs of activity in a study of 35 patients for its experimental drug that targets one of the most commonly mutated genes in cancer. Among the 10 patients with lung cancer in the study, 5 went into partial remission while 4 saw the disease stabilize. Amgen Head of Global Development Elliott Levy explained that the 90% control rate, “is quite notable for a Phase 1 trial where patents get low and often ineffective doses of a drug.” Amgen is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Centene Corp. (CNC) shares tumbled after Humana Inc. (HUM) announced that it does not intend to bid for the rival US health insurer that plans to acquire WellCare Health Plans Inc. (WCG). Centene announced in March that it agreed to purchase WellCare for over $15 billion. Following the announcement, activist investors pushed for Centene to auction itself to determine whether selling itself would add more value for shareholders. Centene Corp. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas. Humana is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas. WellCare Health Plans is rated “Attractive” in our US Large-Cap Global Top Stock Ideas
  • Quest Diagnostics (DGX) said up to 11.9 million patients’ personal and medical records may have been available to hackers in a data breach at a collections agency that works with Quest.  Quest reported that someone had access to all patients information for 8 months, information including credit card numbers, social security numbers and bank accounts.  Quest said it suspended the collection agency for now and is working with law enforcement.  Quest Diagnostics 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