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One person was killed Friday night at a Southern California Costco when an off-duty police officer opened fire after an argument. Shoppers ran for their lives. Carter Evans reports.
Police said one man was killed and others were injured after a deadly shooting broke out at a Costco in California. There was an off-duty cop inside the Costco, but it’s not clear what role they played in stopping the shooting. Nicole Comstock of Los Angeles’ KCBS-TV reports.
Craig Menear became the CEO of The Home Depot, Inc. (NYSE:HD) in 2014. First, this article will compare CEO...
Goldman Sachs has a new strategy for investors to consider. The firm has now revealed that the most dominant companies in an industry tend to outperform companies with a smaller percentage of market sales. There’s even a name for these kind of companies ‘superstar firms.’ “The market positioning of superstar firms often allows for greater bargaining power over consumers and workers and higher profitability,” Goldman's senior US equity strategist David Kostin told investors. “Superstar firms have been one driver of the explosion in US corporate margins post-crisis.”According to Kostin, companies with the highest share of industry sales have returned 49% since 2015. In contrast, companies with the lowest share of industry sales returned just 16% over the same time-frame. Here we take a closer look at five of the most prominent stocks in Goldman Sachs' 'superstar' portfolio. Should you buy into these names now? Let’s see what the Street has to say now… 1\. Altria (MO) * 88% share of industry US salesDuring the last five years, tobacco giant MO has gained 23%. That’s despite a disastrous 2018 which saw prices pullback 30%. So far in 2019, shares are holding steady- and Wells Fargo’s Bonnie Herzog spies upside ahead. She has just reiterated her Buy rating with a price target of $65 (28% upside potential). She believes that Altria will be able to weather the shift from traditional cigarettes to vapor products. “Major tobacco manufacturers are well-positioned in the current regulatory/political environment driven by strong management teams and a deep reservoir of bench talent and funds to drive innovation” says the analyst. Interestingly, Herzog adds that industry consolidation “will increasingly favor scale in the global ‘arms’ race in reduced-risk products (RRPs) while addressing the youth crisis.” Altria, for example, recently invested $12.8 billion in leading e-cigarette maker Juul Labs as well as a further $1.8 billion in cannabis stock Cronos Group (CRON). Luckily for Altria, Juul recently revealed Q1 sales of $528 million, up 23% from the previous quarter’s revenue. Now there is talk that Juul could be on the way to opening its own chain of vaping shops, starting in Houston and Dallas, Texas. Meanwhile Altria will also exclusively distribute Philip Morris International's (PM) "heat-not-burn" tobacco device. Called IQOS the device heats tobacco to around 350°C vs temperatures in excess of 600°C for a cigarette. “Because the tobacco is heated and not burned, the levels of harmful chemicals are significantly reduced compared to cigarette smoke” claims the company.Overall, we can see that the stock has a cautiously optimistic Moderate Buy analyst consensus. This is based on all the ratings received by the company over the last three months. Meanwhile the average analyst price target of $60 indicates upside potential of 18% from current levels. View MO Price Target & Analyst Ratings Detail 2\. Alphabet (GOOGL) * 63% share of industry US salesLooking back, GOOGL has almost doubled in value over the last five years. But that doesn’t mean there isn’t further upside potential ahead. GOOGL still retains a bullish ‘Strong Buy’ Street consensus. What’s more, the $1,334 average analyst price target indicates upside potential of over 22%. That’s despite more anti-trust talk from regulators, with Makan Delrahim (Assistant AG, DOJ) suggesting that stricter regulation may be coming.“Investors may be getting relatively comfortable with the underlying regulatory risk given that so far, the financial performance at FB, GOOGL and AMZN continues to be in line or even better than what the Street has been expecting” notes top-rated SunTrust Robinson analyst Youssef Squali. Given the complexity and global considerations of regulating and/or breaking up big tech, Squali is confident that it is likely to take years for regulatory measures to be implemented, and even longer for them to start impacting the financials of these companies. What’s more there is a growing realization that even in case of a break-up of a behemoth like GOOGL, the value of the parts may be higher than the whole over time. For example, Needham analyst Laura Martin has just reiterated her GOOGL buy rating with a $1,350 price target. She has calculated that the company could be worth nearly 50% more than its current valuation in the case of a break-up. Martin values Google search at $600 per Alphabet share, YouTube at $200, and the Android App Store at $100. Plus there are extra contributions from Gmail, Maps, Waymo, DeepMind etc. “Elevated regulatory scrutiny adds costs and margin pressures for 2-4 years, but probably has little impact on revenue growth or consumer usage until outcomes are determined and then fought out in the courts,” she concluded.View GOOGL Price Target & Analyst Ratings Detail 3\. General Electric (GE) * 51% share of industry US sales With new CEO Larry Culp at the helm, General Electric has put on a remarkable year-to-date rally of over 40%. The company was primed for a rebound after plunging over 50% in 2018. And analysts are currently divided about the stock’s outlook going forward.The key question is whether Culp’s multiyear turnaround plan will succeed to boost the company while reducing its massive $110 billion debt pile (as of March 31, according to FactSet). Cowen & Co’s Gautam Khanna sums up the problem here: “The major debates on GE's stock, which won't be resolved for years, are whether cost cutting & portfolio actions will return Industrial to sustained high FCF [free cash flow] conversion, & if Capital will require more cash support.” As a result, the analyst reiterates his Hold rating on GE with an $8 price target. That suggests shares could fall 20% from current levels. However, there are some more positive voices in the crowd. Most noticeably, William Blair’s Nicholas Heymann has just reiterated his GE Buy rating. He believes GE can ‘materially outperform’ the market over the next 12 months.“We continue to believe GE’s underlying intrinsic value (with no value assigned to Power) is somewhere in the range of $14-$16 per share,” the analyst revealed, describing this as a “highly feasible base-case valuation for GE’s share price over the next 6-12 months.”“The unbridled fear that overshadowed a rational assessment of the company’s underlying fair value exiting 2018 is beginning to recede and be replaced with far less ambiguous and more tangible plans and actions that will support a likely materially higher value for GE’s stock over the next 12 months and beyond,” said Heymann. View GE Price Target & Analyst Ratings Detail 4\. Walt Disney (DIS) * 49% share of industry US salesThis is a critical year for Walt Disney. As well as two new Star Wars attractions, DIS is also launching its own direct-to-consumer (DTC) streaming service known as Disney+. Clearly investors are feeling optimistic- boosted by the success of Avengers: Endgame (the second highest-grossing film of all time), shares are up 29% year-to-date. This brings Walt Disney’s total five-year gain of over 70%. It’s not just investors that are bullish on DIS right now. In the last three months, 16 analysts have published DIS Buy ratings vs just 3 Hold ratings. That gives DIS its ‘Strong Buy’ Street consensus. Meanwhile the average analyst price target of $153 indicates upside potential of 8%. “I believe that Disney+ will be a significant revenue driving opportunity along with the ongoing success of Disney Studios and Theme Parks” commented five-star Tigress Financial analyst Ivan Feinseth. “I further believe both Star Wars and Marvel franchises including a number of series from both these franchises will be significant drivers for Disney+ subscriptions,” Feinseth wrote. ‘Star Wars Episode IX: The Rise of Skywalker’ is set for release this December, and could also generate a whopping $2 billion in box office revenue.At the same time Morgan Stanley’s Benjamin Swinburne has just raised Disney’s long-term DTC subscribers and earnings estimates. This leads him to a new $160 price target and $210 bull case. He is now forecasting over 130mm global OTT subscribers by 2024, and is confident that DIS shares can sustain a premium multiple as the service ramps up. The analyst’s willingness to underwrite these higher estimates stems from: 1) A faster-than-expected global launch for Disney+; 2) More IP aggregating more quickly than anticipated; and 3) A plan to leverage third-party distribution. View DIS Price Target & Analyst Ratings Detail 5\. General Motors (GM) * 48% share of industry US salesOnly three analysts have published recent ratings on GM. Two analysts are staying neutral on the stock, while one analyst- Morgan Stanley’s Adam Jonas\- has a bullish rating on GM. Encouragingly, out of the three analysts, Jonas is the analyst with the strongest stock picking track record. Following relatively ‘in-line’ Q1 earnings results, Jonas reiterated his buy rating and Street-high price target of $44. From current levels that translates into 23% upside potential. According to the analyst, Q1 earnings didn’t fundamentally change his take on the GM story- especially if you strip away the mark-to-market ‘noise’ from the Lyft (LYFT) and PSA revaluations. Nonetheless, Jonas revealed that he was "sympathetic to some investor profit taking" after prices climbed 5% in April.And the analyst also moved to temper expectations surrounding GM’s self-driving Cruise unit. "While we think GM Cruise has important technological value, we urge investors to lower expectations on revenue generation and profitability of the unit," Jonas advised. "Taking nothing away from GM cruise, it is our understanding that the technology required to remove human drivers at an acceptable level of consumer safety is likely many years away." He continued: "And the legal and regulatory construct to support, even proven technology, may present even greater hurdles largely outside of GM Cruise's control."At the time of writing, General Motors has enjoyed a modest year-to-date rise of 7%. Despite rallying in both 2016, and 2017, 2018 was a more difficult year for GM investors with the stock losing 19%. View GM Price Target & Analyst Ratings DetailDiscover stock ideas from the Street’s best performing analysts here
The voices are growing louder that the US economy is starting to sputter. From Morgan Stanley, stock strategist Michael Wilson said last month, “Recent data points suggest US earnings and economic risk is greater than most investors may think,” and the May jobs report, released on June 7, backed him up. The numbers were grim, with only 75,000 new jobs reported for the month, and the previous two months revised down by an equal amount. Other data has shown a slowdown in the services sector, and a nine-year low in manufacturing activity.The data is starting to point towards trouble, but the real problem with protecting your portfolio in a downturn lies in the lagging definition of a recession: two consecutive quarters of negative economic growth. Given that growth data is typically reported one month after the fact, this means that investors will always be 4 to 7 months late in taking protective measures. So, let’s be proactive about this, and take a look at TipRanks’ database to find some reliable stocks for defensive investing. These are not necessarily “classic” defensive stocks; rather, these companies have shown by recent performance that they can deliver profits even in a downturn. Apple, Inc. (AAPL)First on our list today is Apple, partly because these days it seems you just can’t build a portfolio without a tech giant but mostly because Apple has proven both its long-term reliability and its short-term resiliency. For the long term, Apple is up 130% in the last five years, while in the short haul the company recovered well from the Q4 2018 downturn and has already made up more than half the losses from last month’s market swoon.More importantly, Apple has also shown that it can adapt and change. Steve Jobs’ unique vision underlay his company’s growth in the early 2000s, and his death in 2011 prompted fears that his successor, Tim Cook, would not fill his shoes and the company would stagnate. It is fair to say that events of the past three quarters have laid that fear to rest. While Cook is not Jobs, he hasn’t needed to be – he took over a mature company with established niches and a growing customer base. He has shown himself fully capable of meeting the challenges the market has posed.Cook met last year’s market dip head-on. He admitted that Apple’s core iPhone sales were not going to fully recover, and orchestrated a plan to meet the changing conditions by shifting the sales focus to Services, reconciling iPhone to a longer replacement cycle, and promoting the iPad, iMac, and Macbook lines. Under all of this, helping to ensure success, is the near-billion strong loyal customer base that the company has built over the past decade.So, Apple has the solid foundation that every defensive stock needs. Looking forward, the company made a favorable impression on market analysts earlier this month at the Worldwide Developers Conference. Kathryn Huberty (Track Record & Ratings) of Morgan Stanley said after Apple’s presentation, “After (Monday’s) announcements, we believe Apple Watch and Mac will more meaningfully contribute to App Store growth, while further solidifying Apple as the most attractive platform for app developers.” Noting the company’s commitment to increasing its Services sector, she added, “Apple's top growth opportunity is driving increased user engagement with apps.” Huberty gives Apple a buy rating with a $231 price target, seeing an upside of 19%.Piper Jaffray’s Michael Olson (Track Record & Ratings) also gives Apple high ratings. Peering into the future of iPhone, he notes that 20% of current owners are interested in upgrading to 5G, and says, “Interest in 5G will only grow from here, so this is a favorable early sign that 5G is viewed as a key feature… we believe that as long as services revenue continues to perform well, it will tide many investors over until anticipation for 5G iPhones intensifies.” His price target on AAPL, $230, also suggests an 19% upside.The analyst consensus on AAPL shares is a ‘Moderate Buy,’ based on 19 buy ratings, 16 holds, 2 sells given over the last three months. Shares are trading at $192, so the $212 average price target indicates an upside of 10%.View AAPL Price Target & Analyst Ratings Detail Johnson & Johnson (JNJ)This one is a traditional defensive stock, and it has a reputation for being a bit staid, but don’t let that fool you: Johnson & Johnson offers real value, consistently delivering on both dividend and long-term equity growth. Both are markers of a strong defensive play.The company’s current dividend yield is 2.72%, which may seem small, but at current share prices it equates to an annual payout of $3.80. Better than the actual dividend payment, however, is JNJ’s dividend history. The company has been paying, and steadily increasing, its dividend since the early 1970s. This policy of consistently rewarding shareholders provides a steady source of income for investors, and also encourages them to reinvest that income in the company. It’s a win-win policy.As a long-term investment, JNJ has, like Apple, proven its worth. The stock has gained 56% in the last 5 years, and shows a 9% gain over the past 12 months. And also like Apple, JNJ has proven resilient in the face of adversity: last December, the stock took a hard hit from bad press related to the widely reported talcum powder recall, but has since regained most of that loss. In another example of corporate resiliency, JNJ was recently given a buy rating with a $157 price target by five-star analyst Joanne Wuensch (Track Record & Ratings) of BMO Capital, after she reviewed the status of current legal action the company faced in the state of Oklahoma in regard to the opioid abuse epidemic. Wuensch notes that the case will likely be resolved quickly, and points out, “Litigation is a common occurrence in the health care sector that takes significant time to resolve, and often headlines are worse than reality.” Her price target indicates confidence in the stock, and a 12% upside.Johnson & Johnson’s success rests on two separate bases. The first, and most widely recognized, is the company’s array of popular consumer brands. JNJ is the producer of Band-Aids, Listerine, and Tylenol, to name just a few. Consumer products provide a respectable 16.7% of annual revenue (nearly $14 billion), but the real money for JNJ lies in pharmaceuticals. To put it in perspective, two drugs – Remicade and Simponi – account for 11.3% of the company’s total revenues, two-thirds as much as all of the consumer products.Unlike many large-scale drug producers, Johnson & Johnson is not deeply exposed to payment issues with the Medicare and Medicaid systems. This is important for investors, as both programs have reputations for underpaying, and with an election year coming up both programs are likely to become political footballs as candidates promise ever more benefits. This is a key point noted by Terence Flynn (Track Record & Ratings). Writing for Goldman Sachs, Flynn says, “The company has the lowest exposure to Medicare/Medicaid within the group. As a result, the stock will be less impacted by potential drug pricing headlines/policy proposals ahead of the 2020 presidential election.” Flynn sets a price target of $163 for JNJ, suggesting an upside of 16%.JNJ’s consensus rating of ‘Moderate Buy’ is derived from 7 buy and 5 hold reviews. The stock’s $149 average price target and $140 share price equate to an upside potential of 7%.View JNJ Price Target & Analyst Ratings Detail McDonald’s Corporation (MCD)Fast food burgers might not come immediately to mind when you hear the phrase ‘Return on Investment,’ but McDonald’s has been delivering more than just quick eats. The company has gained an impressive 16% so far this year, rising from $176 on January 2 to a closing price of $205 on June 14. Even more impressive, between May 3 and June 3, while the S&P 500 was slipping 6.8%, MCD shares were gaining 1.2%.It’s all part of a steady-growth story going back to May of 2015, when current CEO Steve Easterbrook took over. McD’s had just posted its first sales decline in more than a decade, and the new chief’s mandate was simple: refresh a stale brand. His ‘Turnaround Plan’ got the company back to basics, emphasizing fresher, higher quality ingredients; a streamlined menu; and physical rebuilding efforts in the company’s aging franchise locations. Through it all, McDonald’s has maintained its high dividend; the payout is now $4.64 annually, for a yield of 2.26%.The market’s analysts agree that MCD is on a stable upward path. Writing at BTIG, Peter Saleh (Track Record & Ratings) says, “The company's menu strategy shift has boosted comps. Expect the increased menu focus on bundles and full price items – and away from deep discounts - to drive higher U.S. average check for the next couple of quarters.” Saleh boosted his price target to $220 on MCD, suggesting an upside of 7%.Saleh’s not alone. Weighing in from Merrill Lynch last week, Gregory Francfort (Track Record & Ratings) sees “2Q-4Q same-store sales (including 3.9%-4.2% for the U.S.) looking conservative with more upside potential than downside risk.” Like Saleh, he gives MCD a $220 price target.Overall, MCD has a ‘Moderate Buy’ consensus based on 19 analyst ratings given in the last three months, including 14 buys and 5 holds. The stock sells for $205 as of June 14, and the average price target of $216 indicates an upside potential of 5.5%.View MCD Price Target & Analyst Ratings Detail Lowe’s Companies, Inc. (LOW)If the US economy does turn down to recession, Lowe’s is in an excellent position to take advantage of the changed conditions. The do-it-yourself home improvement supplier operates on the big-box model, using bulk to offer discounts on the products and services that, in bad times, homeowners are more likely to handle as DIY.This puts Lowe’s strength as a defensive play is in its niche – the stores offer products that most people need, at discounts that grow more attractive in a downturn. Home maintenance won’t stop for a recession, and DIY really is a good way to save money. In addition, Lowe’s has maintained its lucrative contractor business.And now we get to the weakness in this stock. Lowe’s is the second largest home improvement superstore, after Home Depot (HD), and the company is having trouble boosting revenues and earnings against its larger competition. LOW shares have been on a roller coaster ride for the last 18 months, although they are up nearly 8% year-to-date. On an operational level, Lowe’s has had difficulty executing online sales strategy and home delivery, and managing inventory control. Both are putting serious drag on the bottom line, and holding down revenue growth.Pushing back is CEO Marvin Ellison, who took over in July of last year. He has marked both online sales and inventory control as key parts of a turnaround effort to improve the company’s sales and revenue growth. Early assessments of Ellison’s success are guardedly optimistic; LOW did beat sales and revenue expectations in its most recent quarterly report, although EPS missed by 8%. As Keith Hughes (Track Record & Ratings), of SunTrust Robinson points out, “The recovery will not be a "quick story", even though we are positive on the re-set of expectations and maintain that the 10% projected earnings growth this year still tops Home Depot's (HD) expected flat growth.” Hughes sets a $120 price target on LOW, suggesting an upside of 20%.UBS analyst Michael Lasser (Track Record & Ratings) also sets a buy rating on LOW, with an upbeat $115 target and 15% upside. He writes, “The risk-reward ration on the stock is attractive.”On consensus, Lowe’s keeps a ‘Strong Buy’ rating, based on the 14 buys and 4 holds given in the past three months. While the company faces headwinds, it holds a strong position in a valuable niche, and is widely perceived as facing its difficulties effectively. Of the stocks in this article, LOW offers the best upside potential, at 16%, based on the $99 share price and $115 average price target.View LOW Price Target & Analyst Ratings Detail Walmart, Inc. (WMT)Like Lowe’s, Walmart gains its defensive-stock status from its business model. The king of brick-and-mortar retailers offers discount customers the ultimate in one-stop shopping, putting everything that consumers could want or need under one roof, from baby diapers to daily groceries to minor car repairs. Really, there’s nothing you can’t get at Walmart and that fact has made it the world’s largest company by revenue and the world’s largest private employer.Walmart’s biggest competition comes from Amazon.com (AMZN), but it is more of a whale and elephant story than a cage match. Each company is dominant in its own domain, and each has faced challenges trying to expand on the other’s territory. Walmart may have found a way to leverage its existing stores for an online advantage – rather than offer home delivery (an area in which Amazon already excels), Walmart offers online purchasers an option to pick up their merchandise at the nearest Walmart location. This is a viable alternative, since according to some estimates everyone in the US lives within 10 miles of a Walmart store.As a defensive play, Walmart’s greatest advantage is the pedestrian nature of its business. Everyone needs the products they offer, and in hard times, Walmart’s famously low prices will simply look more attractive. Writing after WMT reported FY20 Q1 earnings, Raymond James’ Budd Bugatch (Track Record & Ratings) said, “Investors should be most encouraged by the U.S. segment, which showed a 5.5 percent year-over-year increase in operating income to $4.1 billion. The business saw strength from a favorable sales mix while e-commerce margins came in better than management's own expectations.” While he believes the company is on firm footing, his price target, at $110, suggests only a modest 1% upside.Guggenheim’s Robert Drbul (Track Record & Ratings) sums up Walmart’s case quite well in his recent research note: “We believe the business remains quite healthy, with solid physical/digital results in recent quarters… We continue to believe WMT’s resources uniquely position it to successfully evolve in an ever-changing retail environment. While trade concerns/tariffs may create quarter-to-quarter fluctuations, we believe the management team will astutely navigate any changes.” Drbul maintained a $115, which indicates a 5.5% upside from current levels.On average, WMT shares have a price target of $113, which gives an upside of 4.5% from the share price of $109. The analyst consensus of ‘Moderate Buy’ is based on 8 buys, 2 holds, and 1 sell set in the last three months.View WMT Price Target & Analyst Ratings DetailYou can learn more about these stocks using TipRanks Stock Comparison tool. This is a powerful new tool that shows all the data on multiple stocks. See for yourself how the Comparison Tool works, by using it to look at the stocks in this article.Disclosure: This author holds a long position in Apple, Inc.
Lowe's Companies Inc NYSE:LOWView full report here! Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for LOW with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold LOW had net inflows of $6.11 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Consumer Servicesis falling. The rate of decline is significant relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. LOW credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
General Mills Inc NYSE:GISView full report here! Summary * Perception of the company's creditworthiness is positive * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for GIS with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold GIS had net inflows of $8.98 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. GIS credit default swap spreads are near the lowest level of the last one year and indicate improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Under his leadership, the big bank has posted record profits and overcome the ugly legacy of its financial crisis-era missteps
Citigroup analyst Gregory Badishkanian isn’t ready to declare a victory in the grocery war, but he does have Buy ratings on Kroger, Walmart, and Amazon, and is Neutral on Costco.
Overall, the first quarter has been relatively strong for retailers, so let's look at what investors should expect from Kroger to see if they should consider buying KR stock heading into its Q1 earnings release.
The U.S. Justice Department is set to decide as early as next week whether to approve the $26.5-billion merger of wireless carriers T-Mobile USA and Sprint Corp, a person briefed on the matter said on Friday. Earlier this week, Dish Network Corp executives met with the Justice Department's antitrust chief Makan Delrahim and Federal Communications Commission Chairman Ajit Pai as part of the government's review of the deal, which could dramatically reshape the U.S. wireless market.
Key indexes closed slightly lower in the stock market today as Broadcom and other chips weighed. But the Dow Jones and S&P 500 held key support.
Market participants in search of an adrenaline rush were likely left disappointed today. The major U.S. equity benchmarks meandered for most of the day, resulting in slightly lower finishes by the time the closing bell rang.Source: Shutterstock The Nasdaq Composite was the worst offender (we'll get to that in a minute), shedding 0.52% while the S&P 500 lost 0.16%. The Dow Jones Industrial Average slipped 0.07%.The tech-heavy Nasdaq was Friday's dog among the major indexes due in large part to awful guidance from semiconductor maker Broadcom Inc. (NASDAQ:AVGO). Semiconductor stocks have been one of the epicenters of the U.S./China trade war and has been noted here, that trade war is expected to have some ill effects on second-quarter results. Broadcom proves as much.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company slashed its 2019 revenue forecast "to $22.5 billion, from $24.5 billion and lowered its outlook for capital spending to $500 million, from $550 million," according to Barron's.Shares of Broadcom slumped 5.6% today, spurring a slew of negative action by sell-side analysts. Intel (NASDAQ:INTC) is the only semiconductor maker in the Dow Jones, and its shares slid 1.1% Friday in response to the weakness in Broadcom. The Dow Jones Industrial Average is home to six technology stocks. Just two closed higher today. Slim Pickings Among WinnersThe Home Depot (NYSE:HD) was the biggest winner in the Dow today, gaining 1.7% to push its month-to-date gain to over 7%. The consumer cyclical name has been moving higher on light news this month, but there are some data points that portend some strength in the consumer, the driving force of the U.S. economy. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 "The latest data on retail sales from the Census Bureau, released on Friday, suggests that spending is now rising to match incomes," according to Barron's. "Average spending at stores, bars, and restaurants, excluding gasoline stations, was up 1.2% in April and May, compared with February and March on a seasonally adjusted basis."Walmart (NYSE:WMT) said it is laying off around 600 workers in Charlotte as part of an outsourcing program. The company is the largest U.S. retailer and biggest non-government employer in the U.S. It is doubtful that a headcount reduction of 600 was behind today's gain of 0.4% for the stock. Shares of Walmart are up about 9% this month, serving as another example of investors' preference for defensive names. The stock hit a 52-week high today.United Technologies (NYSE:UTX), the defense giant that has been making regular appearances in this space in recent days, traded slightly higher today after an analyst said the stock's drubbing in the wake of its controversial deal with Raytheon (NYSE:RTN) is a case of too much, too fast.Today, Vertical Research analyst Jeffrey Sprague upgraded United Technologies to "buy" from "hold" while lifting his price target on the stock to $145 from $140.Goldman Sachs Group (NYSE:GS), the largest U.S. investment stock and the biggest financial stock in the Dow, rose 0.19%.The stock "is currently trading at around tangible book value, and it has over 30% upside to our fair value estimate," said Morningstar. Bottom Line on the Dow Jones TodayInvestors should expect to see more diverging data points and opinions over the near term. For example, the Federal Reserve said in a report out Friday that industrial production rose 0.4% last month. However, the University of Michigan consumer sentiment reading for June dropped to 97.9 this month from 100 in May. That was due in large part to tariff concerns.With second-quarter earnings season fast approaching, investors may want to consider looking for sector-level opportunities."At the sector level, analysts are most optimistic on the Energy (64%), Health Care (60%), and Communication Services (60%) sectors, as these three sectors have the highest percentages of Buy ratings," according to FactSet.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Dow Jones Today: Stocks Have a No-Fun Friday appeared first on InvestorPlace.
[Editor's note: This story was previously published in February 2019. It has since been updated and republished by InvestorPlace staff.]With the market up more than 20% since the late-December lows, the argument that stocks -- at least some stocks -- are back to being overvalued and overbought holds at least a little water. Others argue that the rebound rally has only just begun, and valuation isn't yet a problem.The truth is, as usual, somewhere in the middle of the two extremes.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor a surprising number of names, however, it's a debate that's largely irrelevant. Some stocks are simply (still) too cheap to overlook, poised to make gains whether or not the broad market's tide helps out in the foreseeable future. For deeply undervalued equities in anything but a wildly bearish environment, the bigger risk is being on the sidelines rather than in a position. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 To that end, here's a rundown of 10 of the market's best cheap stocks to buy right now. In some cases, the per-share price is just oddly low. In other cases, prices compared to earnings are well into single-digit territories. In most cases, both qualities apply. In no particular order …Source: NASA Blueshift via Flickr CBS Corporation (CBS)CBS Corporation (NYSE:CBS) may be down of late, but I still have confidence in CBS stock anyway. The television giant has improved in a big way where it needed to the most … streaming. By 2022, it should have 25 million streaming customers in tow.It's only a sign of the current paradigm shift in how video is delivered to consumers. It's also the reason we've seen a frenzy of M&A within the film and TV arena, the most notable of which is the Walt Disney (NYSE:DIS) acquisition of Twenty-First Century Fox (NASDAQ:FOXA). CBS has also jockeyed to acquire Viacom (NASDAQ:VIAB).With CBS stock priced at only 7.5 times this year's expected earnings though, the company would also make for a dirt-cheap entry or expansion into the entertainment industry. Air Lease (AL)Source: Karen Neoh via FlickrAir Lease (NYSE:AL) relies on at least a decent economy to drive demand for passenger jets, and recently, investors have seen what they think are too many red flags.Take a closer look at all the data, though, and matters aren't as dire as they may seem. While global economic growth may be running into a near-term headwind in the wake of plenty of political drama, in the bigger picture, airlines still desperately need new aircraft to satisfy demand.In November of last year, and for the 12 months ending then, enplanements and total miles flown once again reached record levels. Boeing (NYSE:BA) believes that between now and 2037, the world's airlines will take delivery of more than 42,000 new aircraft. * 7 First-Half IPO Stocks That Will Falter in 2019's Second Half Given that trend and outlook, Air Lease is undervalued at its forward P/E of just above 5.8. Micron Technology (MU)Source: Shutterstock Add Micron Technology (NASDAQ:MU) to a list of cheap stocks to buy before it's no longer cheap.It's not an easy idea for some investors to get behind. The ramp-up of computer memory production has created a price-cutting glut, and it took a toll on Micron's most recently-reported quarter's bottom line. The previous quarter's gross margins of 59% were further projected to slip to between 50% and 53%, versus estimates of 55%.This is a cycle investors have seen over and over again, however, with the same end result every time. That is, producers will curtail production, abating supply and restoring pricing power. Rivals Samsung Electronics (OTCMKTS:SSNLF) and SK Hynix, in fact, have already decided to slow their DRAM expansion plans, and Micron has vowed to cut capital expenditures by more than $1 billion this year.It could take a while for tempered production to restore DRAM prices, but trading at only 7.6 times this year's projected per-share profits, MU stock is worth the wait. It has been every time before. Citigroup (C)Source: Shutterstock Citigroup (NYSE:C), like most bank stocks, had a rough 2018, and though it has bounced this year, the 2019 rally to-date has been subpar. The stock is trading at a trailing P/E of 10, and a forward-looking earnings multiple of 8 … cheap even by current banking stock standards, which have been abnormally low.The reason for the mismatched price and forecasted earnings is understandable enough. That is, enough investors are convinced interest rates are going to become just a little too high against a backdrop of just a little too much economic weakness. The concern is largely manifested in the flattening yield curve, which is particularly problematic for banks. * The 7 Best Tech Stocks to Buy for the Second Half of 2019 As was the case with Air Lease though (and will be for several others below), the worry isn't fully merited. NCR Corporation (NCR)Source: Shutterstock You may know the company better as National Cash Register Corporation, even though it changed its name years ago to NCR Corporation (NYSE:NCR). The less-limiting moniker reflect the fact that point-of-sale devices are now much more than a means of completing a sale. Since then, the company has expanded into areas like ATM machines, self-service kiosks and full-blown inventory management platforms.It's certainly a move in the right direction, although it's arguable the market isn't giving the new NCR enough credit. Shares are priced at only 10 times this year's projected profits.That might have something to do with the fact that outfits like Square (NYSE:SQ) and Paypal (NASDAQ:PYPL) are encroaching in NCR's turf. It's a legitimate concern too. There's a huge subset of companies, however, that will prefer to do business with a long-established name like NCR. Timken (TKR)Source: Oleg Zaytsev via FlickrTimken (NYSE:TKR) is anything but a household name. The company makes ball bearings and industrial transmissions to supply mechanical power where it's needed in a manufacturing environment.It's anything but a riveting (pun fully intended) business. But, it's a business that's starting to grow in earnest again as America's industrial engine revs. After rolling over in 2015 as the nation started to fully transition to a service-oriented economy, the United States began making more goods again in 2016. It's never looked back. * 5 Great Dividend Stocks to Buy From the Tech Sector The paradigm shift has proven to be a boon for Timken, which has grown revenue at a double-digit pace since early 2017. Better still, the new revenue trend has set the stage for earnings growth this year that translates into a projected P/E of only 8.3. General Motors (GM)Source: Shutterstock There's no denying General Motors (NYSE:GM) ran into a headwind three years ago, when "peak auto" became a reality. Though a victim of its own rampant success -- subsequent comparisons have all looked lackluster -- investors tend to only care about how current results stack up against the recent past.Those investors, however, may be unfairly harsh with their treatment of GM stock and its peers. While it remains unclear when we'll see another automobile purchase growth cycle again, General Motors is still a solid cash cow, yielding 4.25% while it sports a dirt cheap trailing P/E of 5.7.Regardless, the carmaker continues to impress regardless of the stock's valuation. Nicolas Chahine commented, "the 2018 barrage of tariff headlines made GM stock a tough trade as it fell sharply off its January 2018 highs. This year so far it has been the total opposite. GM management clearly gave Wall Street reason to rejoice and buy the stock and investors ate it up. This morning, they backed up their claim…" Lumentum Holdings (LITE)Don't worry if Lumentum Holdings (NASDAQ:LITE) is an unfamiliar name -- most investors probably haven't heard of it. The company makes communications equipment and industrial lasers, and has a big presence in the fiber optic industry.There has never been a time when the world has needed such high-speed connectivity. As more and more wireless devices compete for a finite amount of radio frequency bandwidth, middlemen are looking for easier and faster ways to offload some of that traffic to physical infrastructure. Fiber optic lines are more than up to the task. * 3 Hot Trades for 3 Spicy IPO Stocks The market doesn't seem to see it yet, pricing LITE stock at a forward P/E of 9.7 despite this year's expected revenue growth of 28% and next year's 27%. As time passes though, Lumentum's role in the future of telecom will become clearer. Terex (TEX)Source: Shutterstock Name any piece of mobile machinery, and Terex (NYSE:TEX) probably makes it. From backhoes to cherry pickers to tracked conveyers to cranes, Terex has solutions for almost any industrial application.That diversity hasn't helped revenue in a while, with the top line peaking in 2014. The stock has been hit-and-miss since then … more misses than hits.The doubters may have overshot their pessimism though, sending TEX stock to a forward-looking P/E of 7.2 following what should be nearly 17% revenue growth for 2018. While sales growth is expected to slow this year, the company more often than not topped sales and earnings estimates in 2018. It may hold a few pleasant surprises in store this year. Capital One (COF)Source: Eric Hauser via Flickr (Modified)Last but not least, add credit card company Capital One Financial (NYSE:COF) to your list of cheap stocks to consider here.Like Citigroup, Air Lease and others, investors have been fearful that a slowing economy -- maybe even a shrinking one -- could work against Capital One. In fact, rising interest rates could hit Capital One particularly hard in that situation, as its target market of risky borrowers could be the first to underpay of stop payments altogether should the global economic condition sour. * 3 Hot Internet Stock Trades It's another case, however, where the doubters may have overshot. COF stock is now priced at only 7.5 times this year's expected profits, making it one of the cheapest stocks to own in the financial sector. The worst-case scenario is more than priced in.As of this writing, James Brumley held a long position in CBS Corporation. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post The 10 Best Cheap Stocks to Buy Right Now appeared first on InvestorPlace.
Ford Motor Co. shares may soon reap the benefits of the car maker’s restructuring in Europe, an effort that has been so far “underappreciated” by markets. Ford (F) shares fell nearly 1% Friday, poised to end the week with 2% gains. Ford’s operating margins in Europe could improve on average about 4%, and this level of earnings “is well above Street expectations for the region over the long-term — which continue to call for losses through 2021,” the Goldman analysts, led by David Tamberrino, said.
The sell-off in chipmaking titan Broadcom threw a wet blanket on the new market rally. The Nasdaq and small caps led the drop. This Dow Jones stock rose.
Garrett Nelson at CFRA on Friday downgraded General Motors Co. stock to sell, from buy, on bearish expectations for auto sales, GM's operating margin forecasts, and "a belief that GM is likely to lower earnings guidance," he said. Nelson also cut his 12-month price target on the shares by $8 to $32, and lowered full-year profit estimates for 2019 and 2020. GM global sales fell 10.4%, including a 7% drop for U.S. sales, "and recent data suggests that demand remains weak, particularly in China (43.5% of GM's total vehicle sales in 2018)" Nelson said. "We expect weak sales and the negative impact of the trade war to weigh on GM's margins." GM shares fell 0.8% on Friday. The stock has gained 35% this year, compared with gains of 15% and 12% for the S&P 500 index and the Dow Jones Industrial Average.
Procter & Gamble Co. will collect recyclable plastic such as shampoo or dish soap bottles to fashion all podiums that will be used for medal presentations during the summer Olympic Games in Tokyo next year. The Cincinnati-based maker of consumer goods such as Pantene shampoo and Dawn dish soap (NYSE: PG) is partnering with the International Olympic Committee and the Tokyo 2020 Organizing Committee on the project. “The Tokyo 2020 Podium Project is an example of how the Olympic Games can be a catalyst to inspire actions that have a positive impact on the environment and society,” said Marc Pritchard, chief brand officer of P&G. “Sustainability is at the heart of this effort … to demonstrate how consumers can participate in reducing plastic waste.” This project also expands P&G’s sponsorship of the Olympic Games.
The company is in protracted licensing talks with phone-services provider Verizon Communications Inc. and is in a dispute with chipmaker Qualcomm Inc. over the value of patents. Huawei also lodged claims against Harris Corp. after the defense contractor sued it last year alleging infringement of patents for networking and cloud security.