blog

Latest from the Quantamize Blog

Global Stocks Trending in the News for June 5th, 2019

Jun 05, 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

  • American Eagle (AEO) reported first quarter adjusted EPS that beat consensus.  American Eagle posted first quarter adjusted EPS of 24 cents, beating consensus of 21 cents.  American Eagle reported revenue in the first quarter of $886.3 million, ahead of $855.5 consensus.  Same store sales grew 6% in the first quarter, well above 3.1% consensus.  American Eagle provided second quarter adjusted EPS guidance of 30 to 32 cents, below consensus of 35 cents.  American Eagle is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.    
  • Calares (CAL) saw its price target cut to $28 from $32 at Needham.  Calares’ buy rating was maintained.  Needham believes the softness in comps seen in the first quarter will persist into the second quarter.  The third quarter should see improvement for Calares, Needham adds.  The inventory situation should improve by then as well.  Calares is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Carnival Cruise Lines (CCL) is set to suffer as the US State Department said it will no longer allow cruise ships and other vessels to make stops in Cuba.  The US cited Cuba’s actions in Venezuela and its causing the humanitarian crisis there.  The US government action caught the industry by surprise when announced.  Cruise companies have been adding sailings to Cuba recently as demand to go there remains strong.   Carnival Cruise Lines is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.    
  • Cracker Barrel (CBRL) reported fiscal third quarter EPS that beat consensus.  Cracker Barrel fiscal third quarter EPS of $2.09, beating consensus of $2.07.  Same store sale grew 1.3%, just above 1.2% expected.  Fiscal third quarter revenue of $739.6 million beat consensus of $721.4 million.  Cracker Barrel boosted its regular quarterly dividend to $1.30 per share from $1.25.  Cracker Barrel also declared a special dividend of $3.00 per share.  Cracker Barrel is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.    
  • Ford Motor Co (F) saw its joint venture in China, called Changan Ford Automobiles, fined for anti-trust violations by Chinese authorities.  Ford will be fined $26 million for restricting retailers’ sale price in the city of Chongqing.  The move is China pressuring US companies as a result of the trade war and actions against other US companies is almost guaranteed.  Ford Motor Co is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • GameStop (GME) shares slid after the company reported a complete cut to its dividend.  GameStop also said the rest of the year “will probably be tough.”  Not what investors want to hear.  GameStop’s CEO said management is confident that redirecting capital to debt reduction is the right move for the company.  Analysts comments focus on the fear that management is not confident in GameStop’s ability to generate cash going forward.  GameStop is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • Mattel Inc. (MAT) shares soared by double-digits after the company signed an international licensing agreement with Sanrio Inc. (TSE: 8136) to develop toys and products inspired by Hello Kitty & Friends and other related characters within the Sanrio’s portfolio. According to Chief Franchise Management Officer Janet Hsu, “This relationship is another example of Mattel’s commitment to collaborate with globally-recognized franchises as part of our transformation into an IP-driven, high-performing toy company.” Mattel is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas. Sanrio is not rated in our Global Top Stock Ideas.
  • Tesla (TSLA) is likely to see a recovery of 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 Global Top Stock Ideas 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's first quarter same store sale in constant currency 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 Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Walmart (WMT) will get a visit from socialist and presidential candidate Bernie Sanders.  Sanders will hold a protest at the annual shareholders meeting of Walmart in an attempt to pressure Walmart to improve working conditions.  Sanders is aiming to attract working class democratic voters with his Walmart protest, Walmart has been a frequent target of Sanders’ tirades.  Walmart is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples 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 Global Top Stock Ideas 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 Global Top Stock Ideas 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 Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas. 
  • Netflix (NFLX) shares rallied today after BMO Capital Markets wrote to clients that the stock is the “best option” among FAANG stocks because the company does not face any antitrust or regulatory risks. BMO Capital Markets maintains an outperform rating for Netflix and a price target of $470/share, implying a nearly 40% upside from its closing price Monday. Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.    
  • NXP Semiconductor (NXPI) was upgraded to hold from sell at Stifel.  NXP Semiconductor saw its price target hiked to $95 from $85 as well.  Stifel cited reduced debt risk and greater confidence there won’t be any additional cuts to estimates.  NXP Semiconductor could take advantage of lower interest rate to further refinance its debt.  NXP Semiconductor is not rated on our Global Top Stock Ideas 
  • Salesforce.com (CRM) reported first quarter revenue and earnings that beat expectations.  Salesforce.com posted first quarter revenue of $3.74 billion, up 24%, beating consensus of $3.68 billion.  First quarter adjusted EPS of 93 cents, well above 61 cents consensus.  Salesforce.com provided full year EPS guidance of $2.88 to $2.90 and revenue of $16.1 billion to $16.25 billion.  Salesforce.com is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • SoftBank Group Corp. (TSE: 9984) will observe a pretax profit of 1.2 trillion yen ($11.1 billion) after selling part of its stake in Chinese e-commerce giant Alibaba Group Holding (BABA). The sale by SoftBank is the first by Alibaba’s largest shareholder since it initially entered a stake in the company 16 years ago. SoftBank is rated “Attractive” in our Japan Large-Cap Global Top Stock Ideas. Alibaba is rated “Attractive” in our China All-Cap 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 Global Top Stock Ideas and “Neutral” in our US Information Technology 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
  • Ubisoft (ENXTPA: UBI) shares fell by more than 5% following a series of share sales by Guillemot Brothers Ltd. over the last two weeks of May. According to filings published on Monday and May 27th, Guillemot Brothers sold 400,000 total shares. The Guillemot family currently owns roughly 18% of Ubisoft. Ubisoft is rated “Unattractive” in our European Large-Cap 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 Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.    

Global Industrials Stocks Trending in the News

  • 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 Global Top Stock Ideas and "Unattractive" in our US Industrials Global Top Stock Ideas. 
  • Mitsubishi Heavy Industries (TSE:7011) is on talks to buy Bombardier’s (TSX:BBD.B) regional get business.  Mitsubishi Heavy Industries is in the process of designing Japan’s first jetliner since the 1960s.  Mitsubishi said no decision has been made yet.  Press reports that an announcement could come at the Paris Air Show that begins June 17th.  Mitsubishi Heavy Industries is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas.  Bombardier is rated “Neutral” in our Canada 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 Global Top Stock Ideas and "Neutral" in our US Industrials Global Top Stock Ideas. 
  • United Airlines (UAL) is celebrating the UN’s Environment Day by flying “planet flight.”  United will fly from Chicago to Los Angeles today with a minimal environmental footprint.  On the flight United will generate zero cabin waste and fly on a mixture of biofuels.  United will by offsetting credits for any air pollution it generates.  United is trying to show the efforts airlines can make for the environment.  United Airlines is rated "Attractive" in our US Large-Cap Global Top Stock Ideas and "Neutral" 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 Commodities & Energy Stocks Trending in the News

  • Lyondell Bassell Industries NV (LYB) shares rose after it announced the end of its pursuit to acquire Braskem SA (BOVESPA: BRKM5). The prospective deal, which would have made Lyondell the world’s largest plastic maker, collapsed after the two parties failed to reach agreed upon terms. The announcement by Lyondell erases concerns among investors that the company would have overpaid to become the world’s leading provider of both polyethylene and polypropylene. Lyondell is not rated in our Global Top Stock Ideas. Braskem is rated “Top Short” in our Brazil All-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • The merger between CVS Health Corp. (CVS) and Aetna (AET) is facing scrutiny by Judge Richard Leon, a US District Court for the District of Columbia. Leon will host a 3-day evidentiary hearing beginning Tuesday to review if the agreed upon concessions between CVS Health and the US Justice Department would ease concerns relating to the merger’s impact on competition. The prospective $69 billion merger of the companies was initially agreed upon in November 2018. CVS Health is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. Aetna is not rated in our 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