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Global Stocks Trending in the News for June 7th, 2019

Jun 07, 2019

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Global Consumer Stocks Trending in the News

  • Barnes & Noble (BKS) is close to a deal seeing itself acquired by Elliott Management, WSJ reports.  Barnes & Noble has suffered years of decline amid numerous turn around plans, all unsuccessfully.  It is being reported the auction for Barnes Noble is coming near to an end.  Barnes & Noble’s market cap is just north of $300 million.  Barnes & Noble is rated “Attractive” in our US SMID-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.    
  • Beyond Meat (BYND) provided a revenue forecast above consensus.  Beyond Meat said it expects revenue to exceed $210 million this year, above the $205 million consensus.  Last year it generated $88 million in revenue.  Beyond Meat has seen its shares rise 400% since its IPO.  Beyond Meat is not rated in our Global Top Stock Ideas.
  • Caesars Entertainment Group (CZR) in talks and close to a deal to combine with rival Eldorado Resorts Inc (ERI), according to press reports.  Caesars and Eldorado are trying to finalize a cash and stock offer that would result in Eldorado running the combined entity.  Caesars is one of the largest casino operators with over 50 casinos in 13 states.  Caesars has a market cap of $6 billion with $9 billion in debt while Eldorado has a market cap of $4 billion with debt of $3 billion.  No comment from either company.  Caesars is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.   Eldorado Resorts Inc is rated “Neutral” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Five Below (FIVE) reported same store sales that missed with adjusted earnings that beat consensus.  Five Below posted first quarter same store sales growth of 3.1%, trailing consensus of 3.8%.  First quarter EPS of 46 cents beat consensus of 35 cents.  Five Below hiked full-year EPD guidance to $3.11 to $3.18, up from  $3.00 to $3.07, with net sales of $1.87 billion to $1.89 billion.  Five Below is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas
  • JM Smucker (JMS) reported fiscal fourth quarter adjusted earnings that beat consensus.  JM Smucker reported fiscal fourth quarter adjusted EPS of $2.08, beating consensus of $1.95.  Fourth quarter revenue of $1.9 billion trailed consensus of $1.93 billion.  JM Smucker provided 2020 EPS guidance of $8.45 to $8.65, well above consensus of $8.24.  JM Smucker is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Staples Global Top Stock Ideas.    
  • Michaels (MIK) shares slid by double-digits and touched a record low after the compay cut its annual EPS outlook. Michaels now expects adjusted EPS for FY2019 to come between $2.29 and $2.41, down from previously offered guidance of between $2.34 and $2.46 -- prior to the announcement, analysts had expected an EPS of $2.43 in FY2019. In the company’s most recent quarter, Michaels generated comparable sales growth of –2.9% while analysts expected –1.5%. Michaels is rated “Neutral” in our US Large-Cap and “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Mondelez (MDLZ) has ended talks to acquire the international brands from Campbell Soup Company (CPB), CNBC reports.   Campbell had hoped to get at least $3 billion for the unit and the offer from Mondelez was below that.  Talks could not agree on an acceptable valuation and ended recently.  Neither company would comment on the report.  Campbell Soup Company is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas.  Mondelez is rated “Attractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Norwegian Cruise Line (NCLH) was caught by surprise by the US ban on stops in Cuba.  Norwegian Cruise Line said the abrupt nature of the ban will make the negative effect even worse for the company.  Norwegian Cruise Line sees the ban cutting full-year EPS by 35-45 cents.  Norwegian Cruise Line is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Stitch Fix (SFIX) shares surged by as much as 24% after the company announces sales in the most recent quarter ahead of the average analyst estimate. Stitch Fix generated revenue of $408.9 million during its fiscal third quarter that was higher than the most optimistic analyst estimate of $398.0 million. Stitch Fix also observed net revenue per client growth of 7.7% in the fiscal third quarter, marking the company’s fourth straight quarter of growth in the metric. Stitch Fix is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Tesla (TSLA) is reported to have sold a record number of cars in North America, according to a report from Electrek.  Tesla sold 33,000 cars so far in the quarter, Electrek reports, with 2,512 cars sold in June.  The news came from calls with sales executives who were not identified.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.    
  • Walmart (WMT) will start delivering groceries this fall right into customers refrigerators.  In three cities this fall, Walmart employees wearing body cameras will enter customers’ homes that have smart locks.  Customers will be able to watch the deliveries live-streamed when they aren’t home.  The service will be called Walmart InHome.  Walmart is the largest seller of groceries in the US and is looking to adjust the way consumers buy groceries.  Walmart is rated “Top Buy” 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

  • Advanced Micro Devices (AMD) shares jumped higher after Morgan Stanley upgraded the stock from underweight to equal weight, citing positive near-term catalysts. Morgan Stanley also hiked its price target for AMD from $17/share to $28/share. In a note to clients, Morgan Stanley analyst Joseph Moore wrote that he sees, “a period of sustained profits,” generated from products related to cloud gaming. AMD is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • Alibaba (BABA) has signed a memorandum of understanding to form an e-commerce JV with Russian firms MegaFon, Mail.ru and Direct Investment Fund.  Alibaba will take a 49.9% in the JV and made the announcement after receiving anti-trust approval from Russian authorities.   Alibaba will contribute its Russian businesses plus $100 million.  Alibaba had previously set up a $2 billion venture fund in Russia to expand its presence.  Alibaba is rated “Attractive” in our China All-Cap Global Top Stock Ideas
  • Alphabet’s (GOOGL) YouTube said it is committed to removing hateful speech from its platform.  YouTube said it is stepping up efforts to remove any content that is hateful and seeks to glorify the discrimination of any group, race or sex.  YouTube will also remove content that claims factual events did not occur.  YouTube is under pressure as are many other platforms to remove harmful content.  Alphabet is rated “Top Buy” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas
  • Apple (AAPL) plans to offer anonymous sign-ins for third-party apps that are downloaded through its app store.  Users logging in will be given the option to log into the app anonymously which would prohibit the app from collecting the user’s data that is used for advertising targeting.  The feature will be part of the update to its mobile operating system this fall.  Ad supported apps could suffer as consumers gain.  Apple is rated is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas
  • AT&T (T) has changed course and is likely to offer one tier of service for its video streaming service.  AT&T originally planned to offer three tiers of service but WSJ reports that has been simplified to one.  AT&T plans to charge $16-17 as a monthly fee.  An ad supported version with a lower price is planned for 2020.  AT&T is rated is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas
  • Baidu (BIDU) reported that one of the most searched terms now in China is “find a job.”  Baidu’s news highlights the growing challenge for China’s labor market.  China’s economy has been under stress and the Baidu search data confirms the labor market is struggling as the Chinese economy slows.  Baidu is rated “Unattractive” in our China All-Cap Global Top Stock Ideas
  • Ciena (CIEN) shares soared after the company announced adjusted earnings in the fiscal second quarter that crushed the highest analyst estimates. Ciena generated adjusted earnings of $0.48/share during the fiscal second quarter while analyst estimates ranged between $0.35/share and $0.43/share. Ciena’s revenue of $865.0 million in the fiscal second quarter also beat consensus of $819.3 million. Ciena is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Cloudera (CLDR) slashed its revenue forecast for the year, sending the stock lower and leading 4 brokers to cut their ratings and targets.  Cloudera cut its full-year revenue guidance to $745 million to $765 million, down from $835 million to $851 million.  Cloudera also announced its CEO is stepping down.  Cloudera saw its price target cut by ~50% by most brokers to the $7 to $8 range.  Cloudera is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas
  • Facebook (FB) has been revamping its senior executive in its legal and communication teams anticipating antitrust actions from the federal government.  Both legal and communications teams have new leaders while its public relations team is now headed by Britain’s former deputy prime minister.  Facebook has been keen to add people to its defense team with experience dealing with government regulators.  Facebook is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas
  • FleetCor Technologies (FLT) shares slid after Citron Research published a new report that reiterated its short call on the clean energy company. The report cites that FleetCore has sold at least $100 million in “phony” carbon offsets. FleetCor’s short interest currently sits at 2.57% of float. FleetCor is rated “Attractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Roku (ROKU) touched record territory today after Guggenheim upgraded the stock to buy from hold.  Roku has “great secular tailwinds” behind it for streaming video, Guggenheim writes.  Roku saw its price target hiked to $119 from $75.  Roku has surged 260% since its December low.  Roku is rated “Top Short” in our US Large-Cap Global Top Stock Ideas
  • Tencent (TCEHY, SEHK:700) plans to roll out Call of Duty Mobile to markets in the US, Europe and Latin America.  Tencent is rolling out the mobile game globally as it looks for new growth opportunities while its local Chinese market faces near-term uncertainty.  Call of Duty Mobile is still in beta testing and should be fully rolled out in the near-term.  Tencent is rated “Top Buy” in our China All-Cap Global Top Stock Ideas
  • Uber (UBER) is reportedly getting ready to offer helicopter rides to JFK airport in NYC soon.  Uber customers will be able to book a helicopter ride from Manhattan’s East River heliport to the JFK airport for about $200.  The service will be called Uber Copter.  Uber plans to expand the service to other cities over time.  Uber is not rated in our Global Top Stock Ideas.

 

 

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Global Industrials Stocks Trending in the News

  • Columbia Financial (CLBK) will acquire Stewardship Financial Corp (SSNF) in an all cash deal.  Columbia will pay holders of Stewardship $15.75 per share.  The total value of the deal is about $137 million.  The deal should close in the second half of 2019.  Columbia Financial is rated “Attractive” in our US SMID-Cap Global Top Stock Ideas.  Stewardship Financial Corp is not rated in our Global Top Stock Ideas.
  • JP Morgan (JPM) has is killing its no-fee banking app Finn that was meant to attract younger clients.  JP Morgan launched the app a year ago as part of its strategy to expand its offerings among younger customers.  JP Morgan has the most digital customers of any US bank with 50.7 million and decided its Chase unit is best positioned to serve these younger clients.  Finn users will have their accounts transferred to Chase accounts and need to download the Chase app.  JP Morgan is rated “Attractive” in our US Large-Cap Global Top Stock Ideas

Global Industrials Stocks Trending in the News

  • Boeing (BA) is in the middle of negotiations with Chinese airlines for an order of about 100 twin-aisle wide-body jets.  The order would be for Boeing’s 787 and new 777-9 variant which has yet to fly.  The negotiations have been going on amid the trade war between the US and China.  No deal is imminent, press reports highlight, and it’s hard to know when a deal could be announced give the trade spat.  Boing is rated "Unattractive" in our US Large-Cap and " Unattractive" in our US Industrials Global Top Stock Ideas. 

Global Health Care Stocks Trending in the News

  • Insys Therapeutics (INSY) announced it agreed to pay $225 million to settle its civil and criminal charges brought by the federal government.  Insys is charged with fraud for marketing the highly addictive opioid drugs as safer, non-addictive painkillers.  Insys said the settlement was in the best interests of shareholders.  Insys Therapeutics is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas

Global Commodities & Power Stocks Trending in the News

  • PHI Inc. (PHII.Q) shares tanked by as much as 40% after the company’s unsecured creditors negotiated a deal after just one day in a mediated Texas court. The terms of the deal require PHI Inc’s CEO, Chairman, and majority shareholder Al A. Gonsoulin to step down from the position of CEO in exchange for 100% ownership of the company. PHI’s unsecured creditors will also allow a planned reorganization plan pending Gonsoulin’s resignation. PHI’s company insiders will also not be sued by unsecured creditors as part of the deal. PHI Inc. is rated “Top Short” in our US SMID-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