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721900.0
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2018-11-21 00:00:00 UTC
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Mid-Day Market Update: Foot Locker Gains On Upbeat Earnings; Heat Biologics Shares Plummet
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DE
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https://www.nasdaq.com/articles/mid-day-market-update-foot-locker-gains-upbeat-earnings-heat-biologics-shares-plummet-2018
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nan
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nan
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Midway through trading Wednesday, the Dow traded up 0.45 percent to 24,574.78 while the NASDAQ climbed 1.2 percent to 6,991.81. The S&P also rose, gaining 0.67 percent to 2,659.51.
Leading and Lagging Sectors
On Wednesday, the materials shares climbed 1.3 percent. Meanwhile, top gainers in the sector included Tronox Ltd (NYSE: TROX ) up 7 percent, and Iamgold Corp (NYSE: IAG ) up 6 percent.
In trading on Wednesday, utilities shares fell 0.8 percent.
Top Headline
Deere & Company (NYSE: DE ) reported weaker-than-expected results for its fourth quarter.
Deere posted quarterly earnings of $2.30 per share on revenue of $8.34 billion. However, analysts were expecting a profit of $2.45 per share on revenue of $8.58 billion.
Equities Trading UP
Ability Inc (NASDAQ: ABIL ) shares got a boost, shooting up 89 percent to $5.33 after the company announced the acquisition of a company which supplies and develops licenses Ultimate Interception for $1 million.
Shares of Baozun Inc (NASDAQ: BZUN ) shot up 19 percent to $35.91 after announcing better-than-expected earnings for its third quarter.
Foot Locker, Inc. (NYSE: FL ) shares were also up, gaining 18 percent to $54.19 after the company reported stronger-than-expected earnings for its third quarter on Tuesday.
Equities Trading DOWN
Heat Biologics Inc (NASDAQ: HTBX ) shares dropped 31 percent to $1.42 after reporting an offering of common shares and warrants.
Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN ) were down 60 percent to $0.48 after the company issued a press release highlighting Megiddo-Jezreel #1 well was determined to be not commercially productive.
Sphere 3D Corp (NASDAQ: ANY ) was down, falling around 25 percent to $4.98 after jumping 144.81 percent on Tuesday.
Commodities
In commodity news, oil traded up 2.13 percent to $54.57 while gold traded up 0.67 percent to $1,229.40 .
Silver traded up 1.76 percent Wednesday to $14.52, while copper rose 0.85 percent to $2.80.
Eurozone
European shares were higher today. The eurozone's STOXX 600 climbed 1.02 percent, the Spanish Ibex Index gained 0.82 percent, while Italy's FTSE MIB Index jumped 1.21 percent. Meanwhile the German DAX climbed 1.53 percent, and the French CAC 40 rose 0.93 percent while U.K. shares rose 1.23 percent.
Economics
U.S. durable goods orders fell 4.4 percent for October, versus economists' expectations for a 2.2 percent decline.
U.S. initial jobless claims rose 3,000 to 224,000 for the latest week. However, economists projected a 215,000 reading.
The University of Michigan's consumer sentiment index declined to 97.5 for November, versus a prior reading of 98.6.
U.S. existing home sales rose 1.4 percent at an annual rate of 5.22 million for October.
The index of leading economic indicators rose 0.1 percent for October.
Domestic crude supplies rose 4.85 million barrels for the week ended November 16, the Energy Information Administration reported. Analysts projected a gain of 2.5 million barrels. Gasoline stockpiles dropped 1.29 million barrels, while distillate stockpiles slipped 77,000 barrels last week.
The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET.
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN ) were down 60 percent to $0.48 after the company issued a press release highlighting Megiddo-Jezreel #1 well was determined to be not commercially productive. Domestic crude supplies rose 4.85 million barrels for the week ended November 16, the Energy Information Administration reported. Midway through trading Wednesday, the Dow traded up 0.45 percent to 24,574.78 while the NASDAQ climbed 1.2 percent to 6,991.81.
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Equities Trading UP Ability Inc (NASDAQ: ABIL ) shares got a boost, shooting up 89 percent to $5.33 after the company announced the acquisition of a company which supplies and develops licenses Ultimate Interception for $1 million. Economics U.S. durable goods orders fell 4.4 percent for October, versus economists' expectations for a 2.2 percent decline. Domestic crude supplies rose 4.85 million barrels for the week ended November 16, the Energy Information Administration reported.
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Midway through trading Wednesday, the Dow traded up 0.45 percent to 24,574.78 while the NASDAQ climbed 1.2 percent to 6,991.81. The eurozone's STOXX 600 climbed 1.02 percent, the Spanish Ibex Index gained 0.82 percent, while Italy's FTSE MIB Index jumped 1.21 percent. Meanwhile, top gainers in the sector included Tronox Ltd (NYSE: TROX ) up 7 percent, and Iamgold Corp (NYSE: IAG ) up 6 percent.
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Midway through trading Wednesday, the Dow traded up 0.45 percent to 24,574.78 while the NASDAQ climbed 1.2 percent to 6,991.81. Meanwhile, top gainers in the sector included Tronox Ltd (NYSE: TROX ) up 7 percent, and Iamgold Corp (NYSE: IAG ) up 6 percent. Top Headline Deere & Company (NYSE: DE ) reported weaker-than-expected results for its fourth quarter.
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54ba323c-d116-4519-bacc-5e32e59eebf3
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721901.0
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2018-11-21 00:00:00 UTC
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Deere (DE) Lags Q4 Earnings and Revenue Estimates
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DE
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https://www.nasdaq.com/articles/deere-de-lags-q4-earnings-and-revenue-estimates-2018-11-21
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nan
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nan
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Deere (DE) came out with quarterly earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 per share. This compares to earnings of $1.57 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -5.74%. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $2.77 per share when it actually produced earnings of $2.59, delivering a surprise of -6.50%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $8.34 billion for the quarter ended October 2018, missing the Zacks Consensus Estimate by 2.92%. This compares to year-ago revenues of $7.09 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Deere shares have lost about 11.5% since the beginning of the year versus the S&P 500's decline of -1.2%.
What's Next for Deere?
While Deere has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Deere was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.75 on $6.64 billion in revenues for the coming quarter and $11.56 on $36.15 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Farm Equipment is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Deere (DE) came out with quarterly earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 per share. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $2.77 per share when it actually produced earnings of $2.59, delivering a surprise of -6.50%.
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Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $8.34 billion for the quarter ended October 2018, missing the Zacks Consensus Estimate by 2.92%. Deere (DE) came out with quarterly earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 per share. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $2.77 per share when it actually produced earnings of $2.59, delivering a surprise of -6.50%.
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Deere (DE) came out with quarterly earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 per share. Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $8.34 billion for the quarter ended October 2018, missing the Zacks Consensus Estimate by 2.92%. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Deere (DE) came out with quarterly earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 per share. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $2.77 per share when it actually produced earnings of $2.59, delivering a surprise of -6.50%.
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70ecff0e-82de-4b59-8388-31349bb456f8
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721902.0
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2018-11-21 00:00:00 UTC
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Earnings Reaction History: Deere & Company, 30.0% Follow-Through Indicator, 5.4% Sensitive
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DE
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https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-300-follow-through-indicator-54-sensitive-2018-11
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nan
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nan
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Expected Earnings Release: 11/21/2018, Premarket
Avg. Extended-Hours Dollar Volume: $26,831,819
Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 20%
Average next regular session additional gain: 0.2%
Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.2%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 60%
Average next regular session additional loss: 1.5%
Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.5% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 0.2% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.5% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.5% by the following regular session close.
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Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 0.2% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.5% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.5% by the following regular session close.
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Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 0.2% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.5% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.5% by the following regular session close. Extended-Hours Dollar Volume: $26,831,819 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session.
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Extended-Hours Dollar Volume: $26,831,819 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
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34bb987c-18f9-4038-8376-ffc68f4817c0
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721903.0
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2018-11-21 00:00:00 UTC
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Deere (DE) Q4 Earnings Miss, Stock Down on Weak FY19 View
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DE
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https://www.nasdaq.com/articles/deere-de-q4-earnings-miss-stock-down-on-weak-fy19-view-2018-11-21
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nan
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nan
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Deere & CompanyDE reported fourth-quarter fiscal 2018 (ended Oct 28, 2018) adjusted earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 by a margin of 6%. Deere's shares lost around 3.6% in pre-market trading following the release owing to lower-than-expected results and tepid outlook.
Including tax adjustments related to the tax reform, the company reported earnings of $2.42 per share compared with the year-ago quarter's figure of $1.57 per share. Third-quarter performance benefited from favorable market conditions and positive customer response to the company's product lineup comprising advanced technology and product features. Further, cost management and pricing actions to counter cost pressures for raw materials and freight aided results.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $8.3 billion, surging 18% year over year. Revenues missed the Zacks Consensus Estimate of $8.59 billion.
The acquisition of the Wirtgen Group in December 2017 added 11% to net sales in the fiscal fourth quarter. Gain from price realization of 2% was offset by an unfavorable currency translation impact of 3%. Region wise, equipment net sales increased 21% in the United States and Canada, and 13% in the rest of the world. Total net sales (including financial services and others) came in at $9.4 billion, up 17% year over year.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote
Operational Update
Cost of sales in the quarter increased 18% year over year to $6.4 billion. Gross profit in the reported quarter came in at $1.96 billion, advancing 16% year over year. Selling, administrative and general expenses increased 6% year over year to $899 million. Equipment operations reported operating profit of $862 million in the quarter compared with $680 million in the prior-year quarter.
The Wirtgen acquisition contributed $79 million to the operating income in the quarter under review. Apart from the contribution from the Wirtgen acquisition, higher shipment volumes, price realization and lower warranty costs also drove results. However, these gains were partially offset by higher production costs, research and development expenses and unfavorable effects of foreign currency exchange. Total operating profit (including financial services) increased to $1.06 billion from $0.8 billion reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales were up 3% year over year to $5.6 billion, primarily driven by higher shipment volumes and price realization offset by an unfavorable currency-translation impact. Operating profit at the segment declined 5% year over year to $567 million, owing to higher production costs, unfavorable effects of foreign-currency exchange and higher research and development costs, partially mitigated by higher shipment volumes and price realization.
Construction & Forestry sales increased 65% year over year to $2.74 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes, price realization and lower warranty-related claims somewhat offset by unfavorable foreign exchange. This segment reported operating profit of $295 million, up a whopping 243% year over year. The Wirtgen acquisition contributed operating profit of $79 million for the quarter. The above-mentioned factors that led to sales growth were instrumental in driving the improvement in operating profit. However, higher production costs were a deterrent.
Net revenues at Deere's Financial Services division totaled $851 million in the reported quarter, up 9% year over year. The segment's operating profit came in at $201 million, an increase of 1% year over year.
Financial Update
Deere reported cash and cash equivalents of $3.9 billion at the end of the fiscal 2018 compared with $9.3 billion at the end of the prior fiscal. Cash flow from operations was $1.8 billion in fiscal 2018, compared with cash inflow of $2.2 billion in the prior fiscal. At the end of the fiscal, long-term borrowing totaled $27 billion, up from $26 billion at the end of prior fiscal.
Fiscal 2018 Performance
Deere reported adjusted earnings of $9.39 per share in fiscal 2018, falling short of the Zacks Consensus Estimate of $9.51. Including tax adjustments related to the tax reform, the company reported earnings of $7.24 per share in the fiscal, an improvement of 8% year over year.
Net sales of equipment operations improved 29% year over year to $33.3 billion but missed the Zacks Consensus Estimate of $33.4 billion. Total net sales (including financial services and others) came in at $37.4 billion, up 26% year over year.
Fiscal 2019 Outlook
Deere expects equipment sales to rise 7% in fiscal 2019 from fiscal 2018. The Wirtgen acquisition will contribute about 2% to net sales for the fiscal. The forecast factors an unfavorable impact of 2% for foreign-currency translation for fiscal.
For fiscal 2018, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion.
Growth in global agricultural and construction equipment markets will drive Deere. The company noted that agricultural equipment is being propelled by replacement demand despite tensions over global trade and other geopolitical issues.
Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 3% in fiscal 2019 and global sales for Construction & Forestry equipment to rise 15%. The outlook for adjusted net income from Financial Services has been set at $630 million for fiscal 2019.
Share Price Performance
Shares of Deere have lost around 1% over the past year, compared with the industry 's decline of around 4%.
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space include Enersys ENS , Mobile Mini, Inc. MINI and Cintas Corporation CTAS . While Enersys sports a Zacks Rank #1 (Strong Buy), Mobile Mini and Cintas carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Enersys has a long-term earnings growth rate of 10%. The stock has rallied 21% in a year's time.
Mobile Mini has a long-term earnings growth rate of 14%. The company's shares have gained 10% during the past year.
Cintas has a long-term earnings growth rate of 12%. Its shares have gained 21% over the past year.
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Mobile Mini, Inc. (MINI): Free Stock Analysis Report
Cintas Corporation (CTAS): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Enersys (ENS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE reported fourth-quarter fiscal 2018 (ended Oct 28, 2018) adjusted earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 by a margin of 6%. However, these gains were partially offset by higher production costs, research and development expenses and unfavorable effects of foreign currency exchange. Deere's shares lost around 3.6% in pre-market trading following the release owing to lower-than-expected results and tepid outlook.
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Operating profit at the segment declined 5% year over year to $567 million, owing to higher production costs, unfavorable effects of foreign-currency exchange and higher research and development costs, partially mitigated by higher shipment volumes and price realization. Construction & Forestry sales increased 65% year over year to $2.74 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes, price realization and lower warranty-related claims somewhat offset by unfavorable foreign exchange. Click to get this free report Mobile Mini, Inc. (MINI): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Operational Update Cost of sales in the quarter increased 18% year over year to $6.4 billion. Click to get this free report Mobile Mini, Inc. (MINI): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE reported fourth-quarter fiscal 2018 (ended Oct 28, 2018) adjusted earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 by a margin of 6%.
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Fiscal 2019 Outlook Deere expects equipment sales to rise 7% in fiscal 2019 from fiscal 2018. For fiscal 2018, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. Deere & CompanyDE reported fourth-quarter fiscal 2018 (ended Oct 28, 2018) adjusted earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 by a margin of 6%.
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c313145a-ba69-4e7c-9afc-5fc08ec33839
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721904.0
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2018-11-21 00:00:00 UTC
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Mid-Afternoon Market Update: Crude Oil Up Over 3%; Qudian Shares Spike Higher
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DE
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https://www.nasdaq.com/articles/mid-afternoon-market-update-crude-oil-over-3-qudian-shares-spike-higher-2018-11-21
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nan
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nan
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Toward the end of trading Wednesday, the Dow traded up 0.64 percent to 24,622.45 while the NASDAQ climbed 1.46 percent to 7,009.62. The S&P also rose, gaining 0.80 percent to 2,663.03.
Leading and Lagging Sectors
Wednesday afternoon, the energy shares climbed 2.5 percent. Meanwhile, top gainers in the sector included California Resources Corporation (NYSE: CRC ) up 22 percent, and Ultra Petroleum Corp. (NYSE: UPL ) up 12 percent.
In trading on Wednesday, utilities shares fell 1.5 percent.
Top Headline
Deere & Company (NYSE: DE ) reported weaker-than-expected results for its fourth quarter.
Deere posted quarterly earnings of $2.30 per share on revenue of $8.34 billion. However, analysts were expecting a profit of $2.45 per share on revenue of $8.58 billion.
Equities Trading UP
Ability Inc (NASDAQ: ABIL ) shares got a boost, shooting up 134 percent to $6.5859 after the company announced the acquisition of a company which supplies and develops licenses Ultimate Interception for $1 million.
Shares of Qudian Inc. (NYSE: QD ) shot up 21 percent to $5.19 after the company reported Q3 results. Qudian reported Q3 adjusted earnings of $0.32 per share on sales of $280.855 million.
Foot Locker, Inc. (NYSE: FL ) shares were also up, gaining 15 percent to $52.77 after the company reported stronger-than-expected earnings for its third quarter on Tuesday.
Equities Trading DOWN
Heat Biologics Inc (NASDAQ: HTBX ) shares dropped 31 percent to $1.41 after reporting an offering of common shares and warrants.
Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN ) were down 57 percent to $0.5093 after the company issued a press release highlighting Megiddo-Jezreel #1 well was determined to be not commercially productive.
Sphere 3D Corp (NASDAQ: ANY ) was down, falling around 33 percent to $4.45 after jumping 144.81 percent on Tuesday.
Commodities
In commodity news, oil traded up 3.13 percent to $55.10 while gold traded up 0.51 percent to $1,227.40.
Silver traded up 1.51 percent Wednesday to $14.485, while copper rose 0.99 percent to $2.804.
Eurozone
European shares closed higher today. The eurozone's STOXX 600 climbed 1.14 percent, the Spanish Ibex Index gained 1.06 percent, while Italy's FTSE MIB Index jumped 1.41 percent. Meanwhile the German DAX climbed 1.61 percent, and the French CAC 40 rose 1.03 percent while U.K. shares rose 1.47 percent.
Economics
U.S. durable goods orders fell 4.4 percent for October, versus economists' expectations for a 2.2 percent decline.
U.S. initial jobless claims rose 3,000 to 224,000 for the latest week. However, economists projected a 215,000 reading.
The University of Michigan's consumer sentiment index declined to 97.5 for November, versus a prior reading of 98.6.
U.S. existing home sales rose 1.4 percent at an annual rate of 5.22 million for October.
The index of leading economic indicators rose 0.1 percent for October.
Domestic crude supplies rose 4.85 million barrels for the week ended November 16, the Energy Information Administration reported. Analysts projected a gain of 2.5 million barrels. Gasoline stockpiles dropped 1.29 million barrels, while distillate stockpiles slipped 77,000 barrels last week.
Domestic supplies of natural gas dropped 134 billion cubic feet for the week ended November 16, the U.S. Energy Information Administration reported. Analysts projected a fall of 105 billion cubic feet.
The total number of active U.S. oil rigs slipped by 3 to 885 rigs this week, Baker Hughes Inc reported.
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN ) were down 57 percent to $0.5093 after the company issued a press release highlighting Megiddo-Jezreel #1 well was determined to be not commercially productive. Domestic supplies of natural gas dropped 134 billion cubic feet for the week ended November 16, the U.S. Energy Information Administration reported. Toward the end of trading Wednesday, the Dow traded up 0.64 percent to 24,622.45 while the NASDAQ climbed 1.46 percent to 7,009.62.
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Domestic crude supplies rose 4.85 million barrels for the week ended November 16, the Energy Information Administration reported. Domestic supplies of natural gas dropped 134 billion cubic feet for the week ended November 16, the U.S. Energy Information Administration reported. Toward the end of trading Wednesday, the Dow traded up 0.64 percent to 24,622.45 while the NASDAQ climbed 1.46 percent to 7,009.62.
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Toward the end of trading Wednesday, the Dow traded up 0.64 percent to 24,622.45 while the NASDAQ climbed 1.46 percent to 7,009.62. The eurozone's STOXX 600 climbed 1.14 percent, the Spanish Ibex Index gained 1.06 percent, while Italy's FTSE MIB Index jumped 1.41 percent. Meanwhile, top gainers in the sector included California Resources Corporation (NYSE: CRC ) up 22 percent, and Ultra Petroleum Corp. (NYSE: UPL ) up 12 percent.
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Toward the end of trading Wednesday, the Dow traded up 0.64 percent to 24,622.45 while the NASDAQ climbed 1.46 percent to 7,009.62. Meanwhile, top gainers in the sector included California Resources Corporation (NYSE: CRC ) up 22 percent, and Ultra Petroleum Corp. (NYSE: UPL ) up 12 percent. Top Headline Deere & Company (NYSE: DE ) reported weaker-than-expected results for its fourth quarter.
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2018-11-21 00:00:00 UTC
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5 Top Stock Trades to Mull Over Thanksgiving
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https://www.nasdaq.com/articles/5-top-stock-trades-to-mull-over-thanksgiving-2018-11-21
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock markets finally caught a bid ahead of Thanksgiving, hoping to give investors some sort of comfort going into the holidays. Some will turn up for Friday's session while others will stay offline and enjoy a four-day weekend. For those that can't help but sneak a peek at their portfolios, here are our top stock trades to watch for Friday.
Top Stock Trades for Friday No. 1: Foot Locker (FL)
Shares of Foot Locker (NYSE: FL ) are bursting higher on Wednesday, jumping 14% after the company beat on earnings , revenue and comp-store sales expectations. Time to pile in?
While the rally is impressive, particularly after Tuesday's decline, FL is just too volatile for me.
FL stock held its uptrend for this year, but is being pressured by long-term downtrend resistance. Above this mark and the 200-week moving average and investors will have an attractive risk/reward on the long side. Otherwise, they may be able to buy on a pullback to uptrend support.
For me though, this name is simply too volatile right now.
Top Stock Trades for Friday No. 2: Deere (DE)
Is this a bullish sign or a fake-out on a low-volume trading day?
Shares of Deere (NYSE: DE ) are up 3% on Wednesday despite missing on earnings and revenue estimates, and providing disappointing guidance for 2019. The stock was initially lower on the day, but has reversed higher.
There's support in that $130 to $135 area, but the stock continues to put in a series of lower highs. That's unattractive, as is Deere's inability to get above its three major moving averages.
As it stagnates near current levels, my gut tells me Deere is a no-touch below $150. Above that mark and perhaps we can get a rally. But until the indices start playing ball, gains will be hard to come by. Look to see if Deere comes back down to support - and if it holds.
Top Stock Trades for Friday No. 3: GameStop (GME)
With a market cap of just $1.4 billion, GameStop (NYSE: GME ) selling its almost 1,300 AT&T (NYSE: T ) Wireless stores for $700 million is a big deal. It's why the stock is up almost 14% on Wednesday. But is it enough to make GameStop stock a buy?
While the company will likely benefit from a strong holiday season, the long-term business is still not attractive to me. Neither are the charts.
Even after a rally like this, shares still can't get above the 200-day moving average, as highlighted above. Until that's the case, even short-term bulls should avoid this one. Maybe, just maybe, it can rally to $15. But that would setup as a great selling opportunity, at least in my view.
Top Stock Trades for Friday No. 4: Johnson & Johnson (JNJ)
One stock investors can consider buying on the dip is Johnson & Johnson (NYSE: JNJ ). This name continued to churn higher and higher, until Wednesday's 3% fall.
The drop put JNJ right down into its 50-day moving average. With a solid business, rock solid balance sheet and dividend dependability, many investors feel they can hide out in stocks like J&J.
They now have a solid risk/reward pullback in JNJ. If it closes below the 50-day moving average, investors can bail with minimal losses. If it holds, look for a rebound back to recent highs.
Top Stock Trades for Friday No. 5: Advanced Micro Devices (AMD)
The charts are not setting up well for Advanced Micro Devices (NASDAQ: AMD ). The stock is struggling to get above the $22 level, as downtrend resistance (blue line) continues to pressure AMD stock lower.
There are a few main levels to watch here, starting with support. Look to see if AMD retests its 200-day moving average. If so, it will be the third touch since late-October and second time in just a few sessions. That's not too bullish, but another test will likely draw in some short-term buyers.
Below the 200-day puts the October lows back in play and breaks the higher lows theme AMD had put together. Below the October lows and it can get ugly for AMD.
On the upside, let's see if AMD can get above downtrend resistance. If so, it puts the $22 level and the 100-day moving average on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, he is long T.
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The post 5 Top Stock Trades to Mull Over Thanksgiving appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top Stock Trades for Friday No. For those that can't help but sneak a peek at their portfolios, here are our top stock trades to watch for Friday. Shares of Deere (NYSE: DE ) are up 3% on Wednesday despite missing on earnings and revenue estimates, and providing disappointing guidance for 2019.
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Top Stock Trades for Friday No. For those that can't help but sneak a peek at their portfolios, here are our top stock trades to watch for Friday. While the rally is impressive, particularly after Tuesday's decline, FL is just too volatile for me.
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Top Stock Trades for Friday No. As of this writing, he is long T. More From InvestorPlace 2 Toxic Pot Stocks You Should Avoid 7 Winning Stocks to Buy in November for 2019 7 Autonomous Vehicle Stocks to Consider Now 7 Biotech ETFs to Consider for 2019 Compare Brokers The post 5 Top Stock Trades to Mull Over Thanksgiving appeared first on InvestorPlace . For those that can't help but sneak a peek at their portfolios, here are our top stock trades to watch for Friday.
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Top Stock Trades for Friday No. While the rally is impressive, particularly after Tuesday's decline, FL is just too volatile for me. For those that can't help but sneak a peek at their portfolios, here are our top stock trades to watch for Friday.
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2018-11-21 00:00:00 UTC
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Retail Rebounds on Earnings, Stocks Bounce from Historic Thanksgiving Woes
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https://www.nasdaq.com/articles/retail-rebounds-earnings-stocks-bounce-historic-thanksgiving-woes-2018-11-21
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On today's episode of Free Lunch, Ryan McQueeney chats about stocks looking to rebound from their worst start to Thanksgiving week in decades. The host also recaps earnings results from Foot Locker, Gap, and Deere & Co.
Want more video content from Zacks? Subscribe to Zacks Investment News now!
Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
U.S. stocks were in the green on Wednesday morning, as Wall Street hoped to rebound from its worst start to Thanksgiving week in decades. The Dow and S&P 500 erased their year-to-date gains on Tuesday, and the latter of those two key benchmarks posted its worst two-day open to the short holiday week since 1973.
Part of today's rebound was fueled by more positive results from the retail sector. Foot Locker FL , for instance, saw its stock soar after reporting better-than-expected earnings and revenue. The athletic retailer also notched comps growth of nearly 3% and issued upbeat guidance for the full year.
Investors were also sending Gap GPS shares higher after its report. The retail umbrella company saw strong numbers at Old Navy and Banana Republic, which was enough to send its stock higher after a tough year. There are still question marks about the namesake brand, and guidance was light, but investors responded optimistically today.
Another major earnings report today was from agriculture equipment giant Deere & Co. DE . The parent company of John Deere posted shaky number, missing estimates on the top and bottom line and issuing relatively muted revenue guidance.
Nevertheless, shares of Deere rallied into the green after the company's conference call, perhaps suggesting that investors are in the mood to start buying again after a difficult stretch for the broader market.
Make sure to check out today's show to get all the key facts and hear Ryan's perspective on the above stories!
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Deere & Company (DE): Free Stock Analysis Report
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Foot Locker, Inc. (FL): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On today's episode of Free Lunch, Ryan McQueeney chats about stocks looking to rebound from their worst start to Thanksgiving week in decades. The parent company of John Deere posted shaky number, missing estimates on the top and bottom line and issuing relatively muted revenue guidance. Nevertheless, shares of Deere rallied into the green after the company's conference call, perhaps suggesting that investors are in the mood to start buying again after a difficult stretch for the broader market.
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On today's episode of Free Lunch, Ryan McQueeney chats about stocks looking to rebound from their worst start to Thanksgiving week in decades. Click to get this free report Deere & Company (DE): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report Foot Locker, Inc. (FL): Free Stock Analysis Report To read this article on Zacks.com click here. The host also recaps earnings results from Foot Locker, Gap, and Deere & Co. Want more video content from Zacks?
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On today's episode of Free Lunch, Ryan McQueeney chats about stocks looking to rebound from their worst start to Thanksgiving week in decades. Click to get this free report Deere & Company (DE): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report Foot Locker, Inc. (FL): Free Stock Analysis Report To read this article on Zacks.com click here. The host also recaps earnings results from Foot Locker, Gap, and Deere & Co. Want more video content from Zacks?
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On today's episode of Free Lunch, Ryan McQueeney chats about stocks looking to rebound from their worst start to Thanksgiving week in decades. Click to get this free report Deere & Company (DE): Free Stock Analysis Report The Gap, Inc. (GPS): Free Stock Analysis Report Foot Locker, Inc. (FL): Free Stock Analysis Report To read this article on Zacks.com click here. The host also recaps earnings results from Foot Locker, Gap, and Deere & Co. Want more video content from Zacks?
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2018-11-21 00:00:00 UTC
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What Happened in the Stock Market Today
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https://www.nasdaq.com/articles/what-happened-stock-market-today-2018-11-21
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Stocks rose in pre-holiday trading Wednesday, with the Dow Jones Industrial Average (DJINDICES: ^DJI) up most of the session but closing flat, and the S&P 500 (SNPINDEX: ^GSPC) posting a gain. Advancing issues led declining ones by almost 3 to 1.
Today's stock market
Data source: Yahoo! Finance.
Energy stocks rose after crude oil prices firmed up, and the technology sector managed to halt its slide. The SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT: XOP) regained 2.4% and the PowerShares NASDAQ Internet ETF (NASDAQ: PNQI) closed up 1.7%.
As for individual stocks, mall-based Foot Locker (NYSE: FL) had good news for investors going into the holidays, and Deere & Company (NYSE: DE) rose despite missing profit forecasts.
Foot Locker reports sales growth and margin expansion
Foot Locker provided some welcome news for the retail sector when it announced better-than-expected third-quarter results and upbeat guidance, and shares soared 14.9%. Adjusted earnings per share grew 9.2% to $0.95 on the strength of a 2.9% increase in comparable-store sales. Overall sales fell 0.5% to $1.86 billion due to store closures and currency exchange losses. Analysts were expecting Foot Locker to earn $0.92 per share on sales of $1.85 billion.
Comparable sales were up 5.9% in the digital channel and 2.4% in physical stores, and the footwear segment had its first comps gain in six quarters. Boosting profits was an increase in gross margin of 60 basis points to 31.6%, attributed to more full-price selling. Average selling price moved higher in both footwear and apparel.
Looking forward, Foot Locker raised its guidance, saying in its conference call that Q4 comps will be up low- to mid-single digits and gross margin should improve 1 to 1.3 percentage points from the period last year.
Deere shares rise after earnings miss
Agricultural equipment manufacturer Deere reported fiscal fourth-quarter earnings that missed expectations and provided 2019 guidance that was below analyst projections, but the stock rose 2.4% after the company calmed investors concerned about trade issues. Net equipment sales grew 17.6% to $8.34 billion, below the expected $8.57 billion. Earnings per share came in at $2.42, missing the analyst consensus by $0.03. An acquisition added 11% to sales in the quarter.
Looking forward, Deere expects 2019 sales to increase by 7%, which is slightly less than observers have been predicting, with implied net income of about $11.09 per share, well below the analyst consensus of $11.64 per share.
The disappointing earnings and outlook didn't scare off investors, possibly because Deere officials said on the conference call that the impact on soybean farmers from Chinese tariffs will be moderate due to increases in exports to other markets and shifts in acreage to corn and wheat next year. A forecast for a 45% increase in cash flow from equipment operations in 2019 to $4.8 billion could have helped, too.
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Jim Crumly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks rose in pre-holiday trading Wednesday, with the Dow Jones Industrial Average (DJINDICES: ^DJI) up most of the session but closing flat, and the S&P 500 (SNPINDEX: ^GSPC) posting a gain. The disappointing earnings and outlook didn't scare off investors, possibly because Deere officials said on the conference call that the impact on soybean farmers from Chinese tariffs will be moderate due to increases in exports to other markets and shifts in acreage to corn and wheat next year. Advancing issues led declining ones by almost 3 to 1.
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As for individual stocks, mall-based Foot Locker (NYSE: FL) had good news for investors going into the holidays, and Deere & Company (NYSE: DE) rose despite missing profit forecasts. Foot Locker reports sales growth and margin expansion Foot Locker provided some welcome news for the retail sector when it announced better-than-expected third-quarter results and upbeat guidance, and shares soared 14.9%. Deere shares rise after earnings miss Agricultural equipment manufacturer Deere reported fiscal fourth-quarter earnings that missed expectations and provided 2019 guidance that was below analyst projections, but the stock rose 2.4% after the company calmed investors concerned about trade issues.
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As for individual stocks, mall-based Foot Locker (NYSE: FL) had good news for investors going into the holidays, and Deere & Company (NYSE: DE) rose despite missing profit forecasts. Deere shares rise after earnings miss Agricultural equipment manufacturer Deere reported fiscal fourth-quarter earnings that missed expectations and provided 2019 guidance that was below analyst projections, but the stock rose 2.4% after the company calmed investors concerned about trade issues. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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Stocks rose in pre-holiday trading Wednesday, with the Dow Jones Industrial Average (DJINDICES: ^DJI) up most of the session but closing flat, and the S&P 500 (SNPINDEX: ^GSPC) posting a gain. Advancing issues led declining ones by almost 3 to 1. Energy stocks rose after crude oil prices firmed up, and the technology sector managed to halt its slide.
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2018-11-20 00:00:00 UTC
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Deere Investors' Tariff Fears Are Overblown: Here's Why
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https://www.nasdaq.com/articles/deere-investors-tariff-fears-are-overblown-heres-why-2018-11-20
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At the time of this writing, Deere & Company (NYSE: DE) stock is down 6% on a year-to-date basis as the bull vs. bear debate rages over the stock. Let's take a closer look at the key arguments on both sides and, in particular, focus on the bearish argument that the company is set to be significantly impacted by trade disputes and tariff actions.
The bullish case
The key part of the bullish case for Deere stock in the near to medium term is that the company's forecast for a 15% increase in its full-year key agriculture and turf segment (74% of the recent profit from equipment sales) is due mainly to replacement sales, rather than any pickup in farmers' income and/or crop prices. In other words, there remains substantial upside possibility given any increase in crop prices.
Soybean is a key battleground area in the U.S. and China trade dispute. Image source: Getty Images.
In addition, the Wirtgen acquisition (global leader in road construction equipment) will diversify its end markets and give Deere exposure to any growth in infrastructural spending.
That's the near- to mid-term view, but thinking medium to long term, Deere has growth prospects from the increasing use of precision agriculture -- think of Internet of Things sensors, onboard computers, and telematics. Indeed, Deere is already seeing strong uptake of many of its leading precision agriculture technologies, and there's evidence to suggest it will boost margin as well as sales growth.
What the bears are afraid of
It's not hard to see the case for the bears. It comes from three factors, with the first two being closely related. The trade dispute and subsequent tariffs on agricultural commodities threaten the income of U.S. farmers, with the largest impact felt among soybean farmers.
Before the tariffs (a 25% duty) China used to buy around a third of U.S. soybean production, but by Nov. 1, "U.S. export sales commitments of soybeans to China had plummeted 94 percent from a year earlier," according to the United States Department of Agriculture (USDA).
The tariff disputes are also increasing steel prices and Deere CEO Samuel Allen is on record as saying that rising steel prices could cause the company to look at switching materials from steel.
The third concern comes from the increase in freight costs coming from the elevated expenses of trucking due to demand exceeding supply in the industry -- at least in the near term.
Steel and freight
The last two factors relate to costs and they have definitely had an impact on Deere in 2018. In fact, management started its fiscal year predicting its cost of sales would be 75% in 2018 , but by the third-quarter earnings report in August, it had increased it to 76% due to "higher production costs such as freight and material costs and higher incentive compensation costs," according to Manager of Investor Communications Brent Norwood on the earnings call.
Obviously, this is a negative, but the magnitude of the cost increases is likely to fall or even turn negative on a year-over-year basis, as economic growth slows next year and demand for steel and trucking should abate.
Moreover, Deere has more than offset the cost increases in 2018 partly thanks to increases in its large agriculture equipment sales outlook in the U.S. At the start of the year, management forecast net sales would increase 22% and net income would come in at $2.6 billion, but guidance currently is for a 30% increase and adjusted net income of $3.1 billion.
Tariff impact on crops
As noted above, the impact on soybeans has been significant for U.S. farmers, but while discussing the 2019 outlook, CFO Raj Kalathur said that "the crop fundamentals would actually strengthen for double crops like corn, wheat, cotton which outweigh soy situation."
But despite the soybean issue, Deere has actually increased its forecast for U.S. farm cash receipts from crops to $188.8 billion from $187.6 billion forecast at the start of the year.
A second bullish counterargument points out that the situation with soybean is highly dynamic and could change in line with political and/or market action. For example, it's possible that the U.S. and China could agree to reduce trade tensions and back away from tariffs.
Similarly, while China's tariff actions have reduced demand for U.S. soybean, China has been buying more from countries like Brazil and Argentina. Indeed, the closely followed spread between export prices of Brazil and U.S. soybean has blown out -- meaning that any other country buying soybean from Brazil rather than the U.S. is acting irrationally. Consequently, U.S. farmers are helping "fill the gap" from China buying more soybean from Brazil, by increasing their sales to other countries.
In addition, the relatively low cost of U.S. soybean has meant U.S. "processor margins have remained high." And the "2018/19 crush is forecast up 10 million bushels this month to 2.08 billion based on robust export sales of soybean meal." According to the USDA, if the tariffs persist and the competitive position of U.S. processors persists, then this could lead to a further support for U.S. soybean.
The takeaway for Deere investors
There's no doubt that the increased freight costs and tariff impacts have been a negative for Deere in 2018, but overall the fundamentals have improved for Deere this year. Furthermore, the tariff fears, although tangible, are overblown given the current situation.
China has taken a direct aim at U.S. soybean farmers and ended up paying a higher price for soybean than it would have ordinarily. Meanwhile, U.S. soybean farmers are starting to find new markets and helping deal with a difficult situation -- good news for Deere -- and the improving outlook for wheat, corn, and cotton means Deere can have another good year in 2019.
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*Stock Advisor returns as of November 14, 2018
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The bullish case The key part of the bullish case for Deere stock in the near to medium term is that the company's forecast for a 15% increase in its full-year key agriculture and turf segment (74% of the recent profit from equipment sales) is due mainly to replacement sales, rather than any pickup in farmers' income and/or crop prices. In addition, the Wirtgen acquisition (global leader in road construction equipment) will diversify its end markets and give Deere exposure to any growth in infrastructural spending. Indeed, Deere is already seeing strong uptake of many of its leading precision agriculture technologies, and there's evidence to suggest it will boost margin as well as sales growth.
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Moreover, Deere has more than offset the cost increases in 2018 partly thanks to increases in its large agriculture equipment sales outlook in the U.S. At the start of the year, management forecast net sales would increase 22% and net income would come in at $2.6 billion, but guidance currently is for a 30% increase and adjusted net income of $3.1 billion. Meanwhile, U.S. soybean farmers are starting to find new markets and helping deal with a difficult situation -- good news for Deere -- and the improving outlook for wheat, corn, and cotton means Deere can have another good year in 2019. At the time of this writing, Deere & Company (NYSE: DE) stock is down 6% on a year-to-date basis as the bull vs. bear debate rages over the stock.
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The bullish case The key part of the bullish case for Deere stock in the near to medium term is that the company's forecast for a 15% increase in its full-year key agriculture and turf segment (74% of the recent profit from equipment sales) is due mainly to replacement sales, rather than any pickup in farmers' income and/or crop prices. Moreover, Deere has more than offset the cost increases in 2018 partly thanks to increases in its large agriculture equipment sales outlook in the U.S. At the start of the year, management forecast net sales would increase 22% and net income would come in at $2.6 billion, but guidance currently is for a 30% increase and adjusted net income of $3.1 billion. The takeaway for Deere investors There's no doubt that the increased freight costs and tariff impacts have been a negative for Deere in 2018, but overall the fundamentals have improved for Deere this year.
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The bullish case The key part of the bullish case for Deere stock in the near to medium term is that the company's forecast for a 15% increase in its full-year key agriculture and turf segment (74% of the recent profit from equipment sales) is due mainly to replacement sales, rather than any pickup in farmers' income and/or crop prices. The takeaway for Deere investors There's no doubt that the increased freight costs and tariff impacts have been a negative for Deere in 2018, but overall the fundamentals have improved for Deere this year. At the time of this writing, Deere & Company (NYSE: DE) stock is down 6% on a year-to-date basis as the bull vs. bear debate rages over the stock.
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2018-11-20 00:00:00 UTC
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Deere (DE) Stock Slides Ahead of Earnings: What to Expect
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https://www.nasdaq.com/articles/deere-de-stock-slides-ahead-earnings-what-expect-2018-11-20
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Shares of Deere & Company DE slid 2.7% during regular trading hours Tuesday, the last session before the agricultural equipment maker is scheduled to release its latest quarterly earnings results. Deere's losses outpaced losses seen by broader indexes in what was a tough day for many stocks, underscoring Wall Street's nervousness about the company's report.
Deere & Co. is the parent company of John Deere, one of the most iconic brands in agriculture. Deere's core business is farm equipment, but it also sells construction and forestry equipment and provides financial services to borrowing customers.
Shares of Deere & Co. are down roughly 10% on the year ahead of its report, largely due to industry specific headwinds. Notably, the agriculture business has been hampered by supply and demand issues-evidenced by low stocks-to-use ratios in key crops-and global trade concerns. Deere has thus far said that replacement demand is outweighing tariff pressure, but whether that trend can hold up is unclear.
Moreover, Deere has grappled with elevated expenses throughout the current fiscal year. Management said this is a result of an unfavorable product mix, higher overhead, and increased incentive compensation.
Deere still has time to turn things around and end the year positive, however. An excellent earnings report tomorrow would certainly help in that task. Let's take a closer look at the market's expectations to see how likely that is.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote
Earnings Outlook
Deere & Co. will report it fiscal 2018 fourth quarter financial results before the opening bell on Wednesday morning. Here's what analysts are expecting, according to our latest Zacks Consensus Estimates.
Earnings : Deere is projected to report earnings of $2.43 per share, which would represent year-over-year growth of 54.8%. There has been one positive revision to these estimates within the past week, lifting the consensus by a penny.
Positive estimates just ahead of a report are generally a bullish indicator, but a number of negative revisions to next-quarter and next-year estimates have dragged the stock to a Zacks Rank #4 (Sell). Moreover, our Most Accurate Estimate-a metric that averages the most recent estimates-sits at $3.36, about 2.7% lower than the consensus.
Despite a positive revision in the past week, recently issued estimates have likely not been upbeat.
Revenue: Analysts have Deere's revenue for the quarter pegged at $8.59 billion. This would represent growth of 21.1% from the $7.09 billion recorded in the prior-year quarter. Full-year revenue is expected to total $33.7 billion.
Bottom Line
The earnings trend for Deere has been mixed ahead of its report, and the stock has already struggled in the face of several specific headwinds this year. This market basically demands a strong beat-and-raise quarter if a stock wants to see an uptick in the immediate aftermath of a report, so the pressure is on Deere to deliver.
There's no saying that the company can't impress Wall Street tomorrow, but some trends look to be stacking against the company.
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See Zacks' 3 Best Stocks to Play This Trend >>
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Deere & Company DE slid 2.7% during regular trading hours Tuesday, the last session before the agricultural equipment maker is scheduled to release its latest quarterly earnings results. Notably, the agriculture business has been hampered by supply and demand issues-evidenced by low stocks-to-use ratios in key crops-and global trade concerns. Bottom Line The earnings trend for Deere has been mixed ahead of its report, and the stock has already struggled in the face of several specific headwinds this year.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Earnings Outlook Deere & Co. will report it fiscal 2018 fourth quarter financial results before the opening bell on Wednesday morning. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Deere & Company DE slid 2.7% during regular trading hours Tuesday, the last session before the agricultural equipment maker is scheduled to release its latest quarterly earnings results.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Earnings Outlook Deere & Co. will report it fiscal 2018 fourth quarter financial results before the opening bell on Wednesday morning. Bottom Line The earnings trend for Deere has been mixed ahead of its report, and the stock has already struggled in the face of several specific headwinds this year. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Earnings : Deere is projected to report earnings of $2.43 per share, which would represent year-over-year growth of 54.8%. Shares of Deere & Company DE slid 2.7% during regular trading hours Tuesday, the last session before the agricultural equipment maker is scheduled to release its latest quarterly earnings results. Deere's losses outpaced losses seen by broader indexes in what was a tough day for many stocks, underscoring Wall Street's nervousness about the company's report.
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6dba3202-c441-47ca-b8be-cb550c3ec42e
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721910.0
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2018-11-20 00:00:00 UTC
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Pre-Market Earnings Report for November 21, 2018 : DE, ALOT
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-november-21-2018-de-alot-2018-11-20
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The following companies are expected to report earnings prior to market open on 11/21/2018. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending October 31, 2018. The farm machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.43. This value represents a 54.78% increase compared to the same quarter last year. The last two quarters DE had negative earnings surprises; the latest report they missed by -6.5%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.99 vs. an industry ratio of 18.90.
AstroNova, Inc. ( ALOT ) is reporting for the quarter ending October 31, 2018. The technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.11. This value represents a 47.62% decrease compared to the same quarter last year. In the past year ALOT and beat the expectations the other quarter. Zacks Investment Research reports that the 2019 Price to Earnings ratio for ALOT is 38.72 vs. an industry ratio of 18.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company ( DE ) is reporting for the quarter ending October 31, 2018. The last two quarters DE had negative earnings surprises; the latest report they missed by -6.5%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.99 vs. an industry ratio of 18.90.
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Deere & Company ( DE ) is reporting for the quarter ending October 31, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.99 vs. an industry ratio of 18.90. The last two quarters DE had negative earnings surprises; the latest report they missed by -6.5%.
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The last two quarters DE had negative earnings surprises; the latest report they missed by -6.5%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.99 vs. an industry ratio of 18.90. Deere & Company ( DE ) is reporting for the quarter ending October 31, 2018.
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Deere & Company ( DE ) is reporting for the quarter ending October 31, 2018. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.99 vs. an industry ratio of 18.90. The last two quarters DE had negative earnings surprises; the latest report they missed by -6.5%.
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b954e1b0-9d0b-48cc-8851-d99680c1cc1d
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721911.0
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2018-11-20 00:00:00 UTC
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Noteworthy Tuesday Option Activity: CALM, OXM, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-calm-oxm-de-2018-11-20
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Cal-Maine Foods Inc (Symbol: CALM), where a total volume of 3,123 contracts has been traded thus far today, a contract volume which is representative of approximately 312,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 102.1% of CALM's average daily trading volume over the past month, of 305,795 shares. Particularly high volume was seen for the $46.50 strike put option expiring December 21, 2018 , with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of CALM. Below is a chart showing CALM's trailing twelve month trading history, with the $46.50 strike highlighted in orange:
Oxford Industries, Inc. (Symbol: OXM) saw options trading volume of 1,296 contracts, representing approximately 129,600 underlying shares or approximately 99.8% of OXM's average daily trading volume over the past month, of 129,840 shares. Particularly high volume was seen for the $75 strike put option expiring December 21, 2018 , with 1,278 contracts trading so far today, representing approximately 127,800 underlying shares of OXM. Below is a chart showing OXM's trailing twelve month trading history, with the $75 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 22,472 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 83% of DE's average daily trading volume over the past month, of 2.7 million shares. Particularly high volume was seen for the $150 strike call option expiring December 21, 2018 , with 2,190 contracts trading so far today, representing approximately 219,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for CALM options , OXM options , or DE options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $46.50 strike put option expiring December 21, 2018 , with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of CALM. Particularly high volume was seen for the $75 strike put option expiring December 21, 2018 , with 1,278 contracts trading so far today, representing approximately 127,800 underlying shares of OXM. Particularly high volume was seen for the $150 strike call option expiring December 21, 2018 , with 2,190 contracts trading so far today, representing approximately 219,000 underlying shares of DE.
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Particularly high volume was seen for the $46.50 strike put option expiring December 21, 2018 , with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of CALM. Below is a chart showing CALM's trailing twelve month trading history, with the $46.50 strike highlighted in orange: Oxford Industries, Inc. (Symbol: OXM) saw options trading volume of 1,296 contracts, representing approximately 129,600 underlying shares or approximately 99.8% of OXM's average daily trading volume over the past month, of 129,840 shares. Below is a chart showing OXM's trailing twelve month trading history, with the $75 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 22,472 contracts thus far today.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Cal-Maine Foods Inc (Symbol: CALM), where a total volume of 3,123 contracts has been traded thus far today, a contract volume which is representative of approximately 312,300 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $46.50 strike put option expiring December 21, 2018 , with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of CALM. Below is a chart showing CALM's trailing twelve month trading history, with the $46.50 strike highlighted in orange: Oxford Industries, Inc. (Symbol: OXM) saw options trading volume of 1,296 contracts, representing approximately 129,600 underlying shares or approximately 99.8% of OXM's average daily trading volume over the past month, of 129,840 shares.
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Below is a chart showing CALM's trailing twelve month trading history, with the $46.50 strike highlighted in orange: Oxford Industries, Inc. (Symbol: OXM) saw options trading volume of 1,296 contracts, representing approximately 129,600 underlying shares or approximately 99.8% of OXM's average daily trading volume over the past month, of 129,840 shares. Particularly high volume was seen for the $150 strike call option expiring December 21, 2018 , with 2,190 contracts trading so far today, representing approximately 219,000 underlying shares of DE. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Cal-Maine Foods Inc (Symbol: CALM), where a total volume of 3,123 contracts has been traded thus far today, a contract volume which is representative of approximately 312,300 underlying shares (given that every 1 contract represents 100 underlying shares).
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ece85f4d-9486-4c44-a598-9719a58a9fa9
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721912.0
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2018-11-19 00:00:00 UTC
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Rent-A-Center, Advanced Energy, Target, TJX and Deere highlighted as Zacks Bull and Bear of the Day
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DE
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https://www.nasdaq.com/articles/rent-a-center-advanced-energy-target-tjx-and-deere-highlighted-as-zacks-bull-and-bear-of
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For Immediate Release
Chicago, IL - November 19, 2018 - Zacks Equity Research highlights Rent-A-Center RCII as the Bull of the Day, Advanced Energy Industries AEIS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Target Corporation TGT , The TJX Companies, Inc. TJX and Deere & Company DE .
Here is a synopsis of all five stocks:
Bull of the Day :
Rent-A-Center is the stock that has been on the Zacks Rank #1 (Strong Buy) list for the longest amount of time. The stock has been a Zacks Rank #1 (Strong Buy) since July 31 and that is saying something. August and September were relatively good months, but staying strong throughout October and midway through November is something else. RCII is finally the Bull of the Day.
Description
A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc., is focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable products such as consumer electronics, appliances, computers, furniture, and accessories, under flexible rental purchase agreements with no long-term obligation. Rent-A-Center Franchising International, Inc., a wholly owned subsidiary of the Company, is a national franchiser of the rent-to-own stores operating under the trade names of Rent-A-Center, ColorTyme and RimTyme.
Earnings History
One reason RCII has been a Zacks Rank #1 (Strong Buy) for the last 3 and a half months is that it has posted back to back beats of the Zacks Consensus Estimate.
It helps that these beats came after some pretty big misses. The misses were negative earnings surprises of 200% and 485%.
Earnings Estimates
You would think that being a Zacks Rank #1 (Strong Buy) for all that time would mean you have some pretty strong estimate revisions. RCII has some moves, but they are not as strong as I thought they would be.
The 2018 Zacks Consensus Estimate moved from $0.72 to $0.84 over the last 90 days, which is really good, but not over the top great.
The 2019 Zacks Consensus Estimate has more or less stood still over that same time period. It kicked higher by one cent, and is now at $1.23.
The implied earnings growth is nice to see, but that isn't a big factor in the Zacks Rank.
Valuation
The valuation for RCII is pretty good, with a 17x forward PE and price to book multiple below 3x at 2.7x. Revenue growth is struggling... but with the idea of a higher minimum wage, you have to think that growth is on the way for a play like this.
Bear of the Day :
Advanced Energy Industries is a Zacks Rank #5 (Strong Sell) and is in a sector that has been weak and looks to be getting weaker. Poor earnings reports from a few bigger chip stocks last week make it hard for analysts to get optimistic about raising estimates. That could keep this stock a Zacks Rank #5 (Strong Sell) for a while and that made me select is as the Bear of the Day.
Description
Advanced Energy is a global leader in the development and support of technologies critical to high-technology, high-growth manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications.
Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers and end-users around the world.
Advanced Energy operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors,
Earnings History
When I see a stock with a Zacks Rank #5 (Strong Sell) I expect to see a lot of earnings misses. With AEIS, I see 3 beats and 1 miss in the last four reports.
That isn't what you should expect to see from a Bear of the Day.
Estimate Revisions
AEIS does not have any positive earnings estimate revisions over the last 60 days. They do, however, have 6 negative revisions for this quarter, next quarter, this year and next year.
The Zacks Consensus Estimate for 2018 has moved from $4.76 to $4.46 over the last 90 days.
An even bigger move can be seen in the 2019 Zacks Consensus Estimate. That number moved from $5.33 to $4.42.
Those movements are the primary reason this stock has slid to a Zacks Rank #5 (Strong Sell) and is now the Bear of the Day.
Additional content:
Upcoming Earnings to Watch: TGT, TJX, DE
Stocks struggled for direction this week, as renewed Brexit drama, mixed trade war news, and inconsistent retail earnings results reminded investors that volatility is not off the table just yet.
Investors will now turn to one of the last waves of Q3 earnings reports for clues on what is next for this market, and with a number of trendy high-volume stocks and key consumer bellwethers due to announce their latest results in the coming days, those clues might just reveal themselves quickly.
With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
We have made this task even easier today by selecting a few of next week's top reports to preview right now. Let's take a closer look at a few of the earnings announcements due during the week of November 19.
1. Target Corporation
Big-box retail giant Target is scheduled to release its latest quarterly earnings results before the market opens on November 20. Target shares have slumped 10% in the past week as investors shrugged at other retail results, but the stock had booked 30% gains on the year before this volatility took over. Nevertheless, Target looks on track to deliver a solid quarter.
Analysts expect Target to report earnings of $1.11 per share and revenue of $17.81 billion, according to our latest Zacks Consensus Estimates. These results would mark year-over-year growth of 22% and 7%, respectively. Earnings estimates have trended higher recently, earnings the stock a Zacks Rank #2 (Buy) ahead of the report.
2. The TJX Companies, Inc.
The TJ Maxx, Marshalls, and HomeGoods parent company is slated to post its latest earnings report before the bell on November 20. Just like Target, TJX shares have slumped in recent sessions. However, the stock has held up quite well through market-wide volatility, and is up more than 36% on the year. The Zacks Rank #2 (Buy) retailer is sitting just below its all-time high.
TJX will hope to prove that its brand of discount retail is still resonating well with shoppers. Three analysts have issued positive estimates for the to-be-reported quarter in the past week alone, which is a bullish trend. Earnings and revenue are now expected to be up 22% and 8%, respectively. TJX has not missed EPS estimates since 2014.
3. Deere & Company
Farm equipment giant Deere & Company will report its most recent financial results before the opening bell on November 21. Deere, like many other equipment makers, has struggled to generate momentum this year. Shares have bounced from their 52-week lows, but the stock is still down about 8% in 2018.
Deere will look to reverse this momentum with a positive report next week. According to our latest consensus estimates, analysts think Deere will deliver earnings of $2.43 per share and revenue of $8.59 billion. These figures would represent year-over-year growth of 55% and 21%, respectively.
Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rent-A-Center, Inc. (RCII): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
The TJX Companies, Inc. (TJX): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Description A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc., is focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable products such as consumer electronics, appliances, computers, furniture, and accessories, under flexible rental purchase agreements with no long-term obligation. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers and end-users around the world. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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In addition, Zacks Equity Research provides analysis on Target Corporation TGT , The TJX Companies, Inc. TJX and Deere & Company DE . Click to get this free report Rent-A-Center, Inc. (RCII): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report To read this article on Zacks.com click here. Description A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc., is focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable products such as consumer electronics, appliances, computers, furniture, and accessories, under flexible rental purchase agreements with no long-term obligation.
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Earnings estimates have trended higher recently, earnings the stock a Zacks Rank #2 (Buy) ahead of the report. Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter: About the Bull and Bear of the Day Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months. Click to get this free report Rent-A-Center, Inc. (RCII): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Earnings estimates have trended higher recently, earnings the stock a Zacks Rank #2 (Buy) ahead of the report. In addition, Zacks Equity Research provides analysis on Target Corporation TGT , The TJX Companies, Inc. TJX and Deere & Company DE . Description A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc., is focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable products such as consumer electronics, appliances, computers, furniture, and accessories, under flexible rental purchase agreements with no long-term obligation.
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ff5a8695-5142-426d-adb7-d570d8da9842
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721913.0
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2018-11-16 00:00:00 UTC
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Upcoming Earnings to Watch: TGT, TJX, DE
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DE
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https://www.nasdaq.com/articles/upcoming-earnings-watch-tgt-tjx-de-2018-11-16
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nan
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nan
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Stocks struggled for direction this week, as renewed Brexit drama, mixed trade war news, and inconsistent retail earnings results reminded investors that volatility is not off the table just yet.
Investors will now turn to one of the last waves of Q3 earnings reports for clues on what is next for this market, and with a number of trendy high-volume stocks and key consumer bellwethers due to announce their latest results in the coming days, those clues might just reveal themselves quickly.
With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
We have made this task even easier today by selecting a few of next week's top reports to preview right now. Let's take a closer look at a few of the earnings announcements due during the week of November 19.
1. Target Corporation (TGT)
Big-box retail giant Target is scheduled to release its latest quarterly earnings results before the market opens on November 20. Target shares have slumped 10% in the past week as investors shrugged at other retail results, but the stock had booked 30% gains on the year before this volatility took over. Nevertheless, Target looks on track to deliver a solid quarter.
Analysts expect Target to report earnings of $1.11 per share and revenue of $17.81 billion, according to our latest Zacks Consensus Estimates. These results would mark year-over-year growth of 22% and 7%, respectively. Earnings estimates have trended higher recently, earnings the stock a Zacks Rank #2 (Buy) ahead of the report.
2. The TJX Companies, Inc. (TJX)
The TJ Maxx, Marshalls, and HomeGoods parent company is slated to post its latest earnings report before the bell on November 20. Just like Target, TJX shares have slumped in recent sessions. However, the stock has held up quite well through market-wide volatility, and is up more than 36% on the year. The Zacks Rank #2 (Buy) retailer is sitting just below its all-time high.
TJX will hope to prove that its brand of discount retail is still resonating well with shoppers. Three analysts have issued positive estimates for the to-be-reported quarter in the past week alone, which is a bullish trend. Earnings and revenue are now expected to be up 22% and 8%, respectively. TJX has not missed EPS estimates since 2014.
3. Deere & Company (DE)
Farm equipment giant Deere & Company will report its most recent financial results before the opening bell on November 21. Deere, like many other equipment makers, has struggled to generate momentum this year. Shares have bounced from their 52-week lows, but the stock is still down about 8% in 2018.
Deere will look to reverse this momentum with a positive report next week. According to our latest consensus estimates, analysts think Deere will deliver earnings of $2.43 per share and revenue of $8.59 billion. These figures would represent year-over-year growth of 55% and 21%, respectively.
These are a few of the major earnings reports to watch for next week. To get caught up on the biggest news from this week, check out the latest episode of the Zacks Friday Finish Line podcast:
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
The TJX Companies, Inc. (TJX): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks struggled for direction this week, as renewed Brexit drama, mixed trade war news, and inconsistent retail earnings results reminded investors that volatility is not off the table just yet. With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. We have made this task even easier today by selecting a few of next week's top reports to preview right now.
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Deere & Company (DE) Farm equipment giant Deere & Company will report its most recent financial results before the opening bell on November 21. Click to get this free report Deere & Company (DE): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks struggled for direction this week, as renewed Brexit drama, mixed trade war news, and inconsistent retail earnings results reminded investors that volatility is not off the table just yet.
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Earnings estimates have trended higher recently, earnings the stock a Zacks Rank #2 (Buy) ahead of the report. Click to get this free report Deere & Company (DE): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks struggled for direction this week, as renewed Brexit drama, mixed trade war news, and inconsistent retail earnings results reminded investors that volatility is not off the table just yet.
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Earnings estimates have trended higher recently, earnings the stock a Zacks Rank #2 (Buy) ahead of the report. Stocks struggled for direction this week, as renewed Brexit drama, mixed trade war news, and inconsistent retail earnings results reminded investors that volatility is not off the table just yet. With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases.
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56be35a2-1cb2-407b-bb2c-49701b4d9ee5
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721914.0
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2018-11-15 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Chevron, Novartis, Qualcomm, TJX and Deere
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-chevron-novartis-qualcomm-tjx-and-deere-2018-11-15
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For Immediate Release
Chicago, IL -November 15, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ChevronCVX , NovartisNVS , QualcommQCOM , TJXTJX and DeereDE .
Here are highlights from Wednesday's Analyst Blog:
Top Analyst Reports for Chevron, Novartis and Qualcomm
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Chevron, Novartis and Qualcomm. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Chevron 's shares have declined 7.9% so far this year, underperforming the Zacks Integrated Oil industry's 5.8% decrease. However, Chevron's Q3 earnings more than doubled year over year and was ahead of analysts' expectations. Cash flow was at its highest level in nearly 5 years, while upstream production hit a record.
Chevron's existing oil and gas development project pipeline is among the best in the industry, targeting volume growth of around 7% in 2018 thanks to planned expansion in the Permian Basin. The oil supermajor pumped 80% more out of the West Texas shale play in the quarter compared with the same period last year, with production set to soar in coming years.
Moreover, the enormous increase in cash flow enabled Chevron to repurchase $750 million of its own shares. Yet there are worries over a drop in its downstream earnings due to weak international margins that once again cut into overall gains from rising E&P income. Hence, investors are advised to wait for a better entry point before buying shares of Chevron.
Shares of Novartis have outperformed the Zacks Large-Cap Pharmaceuticals industry (+14% vs. +12%), in the last six months. Novartis beat sales estimates in the third quarter on strong performance of Cosentyx and Entresto. The label expansion of oncology drugs also boost the top line.
Novartis has a strong oncology portfolio including drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu and Kisqali, which continue to boost sales. Novartis restructured its business and plans to focus on becoming a core drug-focused company, powered by data and digital technologies. The company is looking to solidify its presence in the gene-therapy space. It acquired U.S.-based clinical stage gene therapy company, AveXis, Inc.
Novartis also announced that it will acquire Endocyte to further strengthen its pipeline. However, generic division Sandoz continues to face pricing pressure. The division also suffered a blow when the FDA issued a CRL to its generic Advair Diskus.
Qualcomm 's shares have lost 17.5% over the past year vs +6% for the Zacks Wireless Equipment industry. Regulatory disputes and aggressive competition in the mobile phone chipset market will likely hurt Qualcomm in future. However, Qualcomm reported healthy fourth-quarter fiscal 2018 results backed by proper execution of its strategic priorities to drive technology and product leadership.
The company has been trying to retain its leadership in 5G, chipset market and mobile connectivity with multiple technological achievements and innovative product launches. It expects growth from its China business in fiscal 2019, particularly in the second half.
While Qualcomm expanded its leadership to the high tiers with Snapdragon 700, its Snapdragon 800 solutions will continue defining the premium tier benchmarks. The product mix is improving in the China region and key Qualcomm China-based customers are gaining share globally, auguring well for its future business growth.
Other noteworthy reports we are featuring today include TJX and Deere.
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Media Contact
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Novartis AG (NVS): Free Stock Analysis Report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
The TJX Companies, Inc. (TJX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Novartis has a strong oncology portfolio including drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu and Kisqali, which continue to boost sales. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Stocks recently featured in the blog include: ChevronCVX , NovartisNVS , QualcommQCOM , TJXTJX and DeereDE .
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Click to get this free report Novartis AG (NVS): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: ChevronCVX , NovartisNVS , QualcommQCOM , TJXTJX and DeereDE . Chevron 's shares have declined 7.9% so far this year, underperforming the Zacks Integrated Oil industry's 5.8% decrease.
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Click to get this free report Novartis AG (NVS): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: ChevronCVX , NovartisNVS , QualcommQCOM , TJXTJX and DeereDE . Chevron 's shares have declined 7.9% so far this year, underperforming the Zacks Integrated Oil industry's 5.8% decrease.
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Chevron 's shares have declined 7.9% so far this year, underperforming the Zacks Integrated Oil industry's 5.8% decrease. Novartis has a strong oncology portfolio including drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu and Kisqali, which continue to boost sales. Stocks recently featured in the blog include: ChevronCVX , NovartisNVS , QualcommQCOM , TJXTJX and DeereDE .
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eb78c5e5-7c0f-47e5-a536-856cbab4d41c
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721915.0
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2018-11-14 00:00:00 UTC
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Deere (DE) Reports Next Week: Wall Street Expects Earnings Growth
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DE
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https://www.nasdaq.com/articles/deere-de-reports-next-week%3A-wall-street-expects-earnings-growth-2018-11-14
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The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2018. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 21, 2018, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This agricultural equipment manufacturer is expected to post quarterly earnings of $2.42 per share in its upcoming report, which represents a year-over-year change of +54.1%.
Revenues are expected to be $8.59 billion, up 21.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.76% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is subject to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time , and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Deere?
For Deere, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.55%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Deere will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Deere would post earnings of $2.77 per share when it actually produced earnings of $2.59, delivering a surprise of -6.50%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Deere appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2018.
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The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2018. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
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The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is subject to change. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2018.
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The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2018. So, this combination indicates that Deere will most likely beat the consensus EPS estimate. For the last reported quarter, it was expected that Deere would post earnings of $2.77 per share when it actually produced earnings of $2.59, delivering a surprise of -6.50%.
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1d982ca3-9f8c-46d9-8b6d-5780e3127ab6
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721916.0
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2018-11-13 00:00:00 UTC
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Notable Tuesday Option Activity: MET, CI, DE
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DE
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https://www.nasdaq.com/articles/notable-tuesday-option-activity-met-ci-de-2018-11-13
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in MetLife Inc (Symbol: MET), where a total volume of 31,443 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 41.3% of MET's average daily trading volume over the past month, of 7.6 million shares. Particularly high volume was seen for the $47.50 strike call option expiring January 18, 2019 , with 10,086 contracts trading so far today, representing approximately 1.0 million underlying shares of MET. Below is a chart showing MET's trailing twelve month trading history, with the $47.50 strike highlighted in orange:
Cigna Corp (Symbol: CI) saw options trading volume of 9,857 contracts, representing approximately 985,700 underlying shares or approximately 40.8% of CI's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $220 strike call option expiring January 18, 2019 , with 7,934 contracts trading so far today, representing approximately 793,400 underlying shares of CI. Below is a chart showing CI's trailing twelve month trading history, with the $220 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 10,108 contracts thus far today. That number of contracts represents approximately 1.0 million underlying shares, working out to a sizeable 40.2% of DE's average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $150 strike call option expiring November 16, 2018 , with 1,860 contracts trading so far today, representing approximately 186,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for MET options , CI options , or DE options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $47.50 strike call option expiring January 18, 2019 , with 10,086 contracts trading so far today, representing approximately 1.0 million underlying shares of MET. Particularly high volume was seen for the $220 strike call option expiring January 18, 2019 , with 7,934 contracts trading so far today, representing approximately 793,400 underlying shares of CI. Especially high volume was seen for the $150 strike call option expiring November 16, 2018 , with 1,860 contracts trading so far today, representing approximately 186,000 underlying shares of DE.
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Particularly high volume was seen for the $47.50 strike call option expiring January 18, 2019 , with 10,086 contracts trading so far today, representing approximately 1.0 million underlying shares of MET. Below is a chart showing MET's trailing twelve month trading history, with the $47.50 strike highlighted in orange: Cigna Corp (Symbol: CI) saw options trading volume of 9,857 contracts, representing approximately 985,700 underlying shares or approximately 40.8% of CI's average daily trading volume over the past month, of 2.4 million shares. Below is a chart showing CI's trailing twelve month trading history, with the $220 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 10,108 contracts thus far today.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in MetLife Inc (Symbol: MET), where a total volume of 31,443 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $47.50 strike call option expiring January 18, 2019 , with 10,086 contracts trading so far today, representing approximately 1.0 million underlying shares of MET. Below is a chart showing MET's trailing twelve month trading history, with the $47.50 strike highlighted in orange: Cigna Corp (Symbol: CI) saw options trading volume of 9,857 contracts, representing approximately 985,700 underlying shares or approximately 40.8% of CI's average daily trading volume over the past month, of 2.4 million shares.
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Particularly high volume was seen for the $47.50 strike call option expiring January 18, 2019 , with 10,086 contracts trading so far today, representing approximately 1.0 million underlying shares of MET. Below is a chart showing MET's trailing twelve month trading history, with the $47.50 strike highlighted in orange: Cigna Corp (Symbol: CI) saw options trading volume of 9,857 contracts, representing approximately 985,700 underlying shares or approximately 40.8% of CI's average daily trading volume over the past month, of 2.4 million shares. That number of contracts represents approximately 1.0 million underlying shares, working out to a sizeable 40.2% of DE's average daily trading volume over the past month, of 2.5 million shares.
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ed402db6-95b8-47fc-885e-60d94c8ff25a
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721917.0
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2018-11-08 00:00:00 UTC
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3 Top U.S. Stocks to Watch in November
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DE
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https://www.nasdaq.com/articles/3-top-us-stocks-watch-november-2018-11-08
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With earnings-season volatility in full swing, there are opportunities galore for long-term investors to find stocks to put on their radar. Whether it's earnings expectations, or hits and misses -- or geopolitical factors like those we're seeing in the U.S. right now -- all the market needs is one trigger to send stocks swaying either way.
Amid the mayhem, smart investors should know where to dip their fingers. Our Motley Fool contributors believe Renewable Energy Group (NASDAQ: REGI) , Deere & Company (NYSE: DE) , and Amazon (NASDAQ: AMZN) are three stocks worth watching right now; here's why.
An extra $179 million on the way?
Maxx Chatsko (Renewable Energy Group): Third-quarter 2018 results are in -- and the nation's largest biodiesel producer has now delivered profitable operations for the third consecutive quarter. While nine months is not a very long time, the details surrounding the potential milestone heighten the importance for Renewable Energy Group and its shareholders.
The stock was chronically undervalued for years, often trading at a fraction of book value . The reason was simple: Renewable Energy Group was dependent on government subsidies to reach profitable operations. Considering those government subsidies were allowed to expire in 2010, 2014, 2015, 2017, and now 2018, then retroactively reinstated each time (except for the current year), Wall Street essentially priced shares to account for the volatility.
That hid the fact that Renewable Energy Group was successfully growing production volumes, lowering production costs, and expanding its nationwide logistics network. It began to show this year. The business has reported profitable operations for the first nine months of 2018 without any help from subsidies. That's forced Wall Street to account for Renewable Energy Group's impressive growth profile and ambitious expansion plans, sending shares 110% higher year to date.
Despite the gains, the stock still looks attractive on several valuation metrics, especially following a haircut of nearly 20% since third-quarter 2018 earnings were announced. Perhaps the strongest argument for investors to pay attention: Renewable Energy Group estimates it would receive a windfall of $179 million if federal tax credits for biodiesel are retroactively reinstated for 2018. All of that would be profit -- and it only accounts for operations for the first nine months of 2018.
Capitalize on this upcoming earnings report
Neha Chamaria (Deere & Company): Deere shares are bouncing back to life this month after a 10% drop in October, and that's likely to continue, with the farm and construction-equipment manufacturer set to report its fourth-quarter and full-year earnings on the morning of Nov. 21.
Deere is on solid footing right now. Robust replacement demand and increased adoption of advanced farm techniques, coupled with an uptick in activity in global construction markets, are boosting Deere's sales, as evidenced by the jumps of 32% in both revenue and adjusted net income that it reported for Q3. For the fourth quarter, Deere expects to have generated 21% higher revenue year over year. Not surprisingly, analysts on Wall Street are upbeat; they foresee a dramatic jump in Deere's full-year earnings to roughly $9.53 per share, from the $6.68 a share it made in fiscal 2017.
What investors would want to see this month: Deere's outlook for 2019, and whether it expects farm fundamentals to remain as strong. Signals coming in from the crop markets are mixed for now, with corn prices headed higher even as soybeans continue to tumble. Corn, however, remains a key crop, and higher prices translate into greater farm receipts, giving farmers more room to invest in the kind of heavier advanced agricultural machinery that Deere specializes in.
In a nutshell, it's time to watch Deere closely.
Sometimes the obvious choice is the right one
Chris Neiger (Amazon): It's easy to think that you need to invest in a young company, or one that's fresh off its initial public offering, to see big share-price gains. But sometimes the stocks you need to keep an eye on are the ones you already know about -- but haven't bought shares of yet.
Amazon's stock took a hit after it reported its third-quarter 2018 results at the end of October, and I think that dip offers an opportunity for long-term investors. Investors were concerned that Amazon's revenue growth slowed down a bit , compared to the first half of the year, and were disappointed with the company's fourth-quarter sales guidance -- but there's really not much to be worried about.
First off, Amazon still grew sales in the third quarter by 29% year over year, and by 23% if you back out sales from Whole Foods. That may be slower than some investors wanted, but getting upset over that would mean overlooking Amazon's massive earnings per share of $5.75 in the quarter, which far outpaced analysts' consensus estimate of about $3.14.
Additionally, some investors appear to be missing the company's growing opportunities given both its lucrative cloud-computing business, Amazon Web Services, and Amazon's newfound position as the third-largest digital ad sales platform in the U.S. The company is just getting started in both of these markets, and there's plenty of runway for Amazon to continue to benefit.
Even if Amazon's revenue growth slows a bit, that's no reason for investors to give up on this company. The e-commerce giant has been busy building out its Prime memberships , which lead to more retail sales; it dominates in the public cloud computing market; and it's a rising advertising player to boot. For investors looking to snatch up shares of Amazon, the recent share price dip may be a good time to make a move.
10 stocks we like better than Amazon
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Robust replacement demand and increased adoption of advanced farm techniques, coupled with an uptick in activity in global construction markets, are boosting Deere's sales, as evidenced by the jumps of 32% in both revenue and adjusted net income that it reported for Q3. Corn, however, remains a key crop, and higher prices translate into greater farm receipts, giving farmers more room to invest in the kind of heavier advanced agricultural machinery that Deere specializes in. Our Motley Fool contributors believe Renewable Energy Group (NASDAQ: REGI) , Deere & Company (NYSE: DE) , and Amazon (NASDAQ: AMZN) are three stocks worth watching right now; here's why.
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Our Motley Fool contributors believe Renewable Energy Group (NASDAQ: REGI) , Deere & Company (NYSE: DE) , and Amazon (NASDAQ: AMZN) are three stocks worth watching right now; here's why. Maxx Chatsko (Renewable Energy Group): Third-quarter 2018 results are in -- and the nation's largest biodiesel producer has now delivered profitable operations for the third consecutive quarter. Capitalize on this upcoming earnings report Neha Chamaria (Deere & Company): Deere shares are bouncing back to life this month after a 10% drop in October, and that's likely to continue, with the farm and construction-equipment manufacturer set to report its fourth-quarter and full-year earnings on the morning of Nov. 21.
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Our Motley Fool contributors believe Renewable Energy Group (NASDAQ: REGI) , Deere & Company (NYSE: DE) , and Amazon (NASDAQ: AMZN) are three stocks worth watching right now; here's why. Capitalize on this upcoming earnings report Neha Chamaria (Deere & Company): Deere shares are bouncing back to life this month after a 10% drop in October, and that's likely to continue, with the farm and construction-equipment manufacturer set to report its fourth-quarter and full-year earnings on the morning of Nov. 21. Maxx Chatsko (Renewable Energy Group): Third-quarter 2018 results are in -- and the nation's largest biodiesel producer has now delivered profitable operations for the third consecutive quarter.
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Our Motley Fool contributors believe Renewable Energy Group (NASDAQ: REGI) , Deere & Company (NYSE: DE) , and Amazon (NASDAQ: AMZN) are three stocks worth watching right now; here's why. The reason was simple: Renewable Energy Group was dependent on government subsidies to reach profitable operations. Maxx Chatsko (Renewable Energy Group): Third-quarter 2018 results are in -- and the nation's largest biodiesel producer has now delivered profitable operations for the third consecutive quarter.
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9afa1592-1fe5-49af-98bf-72cf4e9d8329
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721918.0
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2018-11-08 00:00:00 UTC
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Trade of the Day: Deere Stock Is Now a Short
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DE
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https://www.nasdaq.com/articles/trade-day-deere-stock-now-short-2018-11-08
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Industrial stocks as a sector of the S&P 500 have underperformed the S&P 500 all year and once again in the latest down-leg in October. After a steep "counter-trend" bounce over the past few trading sessions (along with the broader U.S. stock market), industrial stocks such as Deere (NYSE: DE ) are now bumping into a layer of technical resistance where active investors and traders could look to re-initiate short-side trades.
Large-capitalization industrial stocks, although they cover a wide variety of industries, are to a good degree exposed to the global business cycle in that they offer products and services internationally. As such, this is a sector that will either act bullish or bearish when global economic growth begins to pick up or slow down. The fact that industrial stocks remain lower by 3% for the year-to-date despite the sharp nearly 10% bounce over the past few trading days goes to show just how much they are struggling.
DE Stock Charts
Click to Enlarge
Moving averages legend: red - 200 week, blue - 100 week, yellow - 50 week
To better illustrate this point, let us look at the first chart, which is a multi-year weekly chart of DE stock. Let's first focus on the blue line at the bottom of the chart, which shows the relative performance of the industrial stocks as a sector versus the S&P 500. Here we clearly see that industrials have largely exhibited relative weakness. The price chart on the top half shows the absolute weakness, i.e. that after an initial rally in January this sector and DE stock in specific here traded lower for the rest of the year so far.
10 Stocks to Buy for a Midterm Rally
From a trading perspective, I am now focusing on the trading range (down-sloping two black parallels). Note that thanks to the recent rally, DE stock is now back at the top of its trading range. Unless global growth is about to pick up again, which I do not yet see, Deere stock will likely have a hard time moving higher.
Click to Enlarge
Moving averages legend: red - 200 day, blue - 100 day, yellow - 50 day
On the daily chart, I drew a black line that captures the upper end of the trading range, if we ignore the breakout fake-out rally in early October. Note that at current juncture, a bunch of "stuff" all comes together to provide a solid confluence resistance area as marked by the blue box. This resistance layer is made up of: 1. the simple black resistance line; 2. the red 200-day simple moving average (the 50- and 100-day moving averages are also in this area); and 3. all three of these moving averages are now sloping lower.
Active investors and traders could now look to short DE stock around the $145-$150 area with a next downside target around $138. Note that Deere is scheduled to report earnings on Nov. 21, which is to say that any swing trading positions should be closed or at least materially reduced in size through the earnings report.
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The post Trade of the Day: Deere Stock Is Now a Short appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fact that industrial stocks remain lower by 3% for the year-to-date despite the sharp nearly 10% bounce over the past few trading days goes to show just how much they are struggling. The price chart on the top half shows the absolute weakness, i.e. that after an initial rally in January this sector and DE stock in specific here traded lower for the rest of the year so far. Note that at current juncture, a bunch of "stuff" all comes together to provide a solid confluence resistance area as marked by the blue box.
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DE Stock Charts Click to Enlarge Moving averages legend: red - 200 week, blue - 100 week, yellow - 50 week To better illustrate this point, let us look at the first chart, which is a multi-year weekly chart of DE stock. This resistance layer is made up of: 1. the simple black resistance line; 2. the red 200-day simple moving average (the 50- and 100-day moving averages are also in this area); and 3. all three of these moving averages are now sloping lower. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Industrial stocks as a sector of the S&P 500 have underperformed the S&P 500 all year and once again in the latest down-leg in October.
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After a steep "counter-trend" bounce over the past few trading sessions (along with the broader U.S. stock market), industrial stocks such as Deere (NYSE: DE ) are now bumping into a layer of technical resistance where active investors and traders could look to re-initiate short-side trades. DE Stock Charts Click to Enlarge Moving averages legend: red - 200 week, blue - 100 week, yellow - 50 week To better illustrate this point, let us look at the first chart, which is a multi-year weekly chart of DE stock. More From InvestorPlace 2 Toxic Pot Stocks You Should Avoid 10 Blue-Chip Stocks to Buy Ahead of Black Friday 7 Dividend Stocks To Consider for Growth 5 Artificial Intelligence Stocks to Consider Compare Brokers The post Trade of the Day: Deere Stock Is Now a Short appeared first on InvestorPlace .
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The price chart on the top half shows the absolute weakness, i.e. that after an initial rally in January this sector and DE stock in specific here traded lower for the rest of the year so far. This resistance layer is made up of: 1. the simple black resistance line; 2. the red 200-day simple moving average (the 50- and 100-day moving averages are also in this area); and 3. all three of these moving averages are now sloping lower. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Industrial stocks as a sector of the S&P 500 have underperformed the S&P 500 all year and once again in the latest down-leg in October.
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020e3791-9846-4419-aed1-0bb5690785d6
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721919.0
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2018-11-08 00:00:00 UTC
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Look Under The Hood: PXLG Has 18% Upside
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DE
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https://www.nasdaq.com/articles/look-under-hood-pxlg-has-18-upside-2018-11-08
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco Russell Top 200 Pure Growth ETF (Symbol: PXLG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $60.75 per unit.
With PXLG trading at a recent price near $51.49 per unit, that means that analysts see 17.99% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PXLG's underlying holdings with notable upside to their analyst target prices are Halliburton Company (Symbol: HAL), Southern Copper Corp (Symbol: SCCO), and Deere & Co. (Symbol: DE). Although HAL has traded at a recent price of $36.41/share, the average analyst target is 43.12% higher at $52.11/share. Similarly, SCCO has 20.34% upside from the recent share price of $39.72 if the average analyst target price of $47.80/share is reached, and analysts on average are expecting DE to reach a target price of $175.69/share, which is 18.37% above the recent price of $148.43. Below is a twelve month price history chart comparing the stock performance of HAL, SCCO, and DE:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although HAL has traded at a recent price of $36.41/share, the average analyst target is 43.12% higher at $52.11/share. Below is a twelve month price history chart comparing the stock performance of HAL, SCCO, and DE: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Three of PXLG's underlying holdings with notable upside to their analyst target prices are Halliburton Company (Symbol: HAL), Southern Copper Corp (Symbol: SCCO), and Deere & Co. (Symbol: DE). Similarly, SCCO has 20.34% upside from the recent share price of $39.72 if the average analyst target price of $47.80/share is reached, and analysts on average are expecting DE to reach a target price of $175.69/share, which is 18.37% above the recent price of $148.43. 10 ETFs With Most Upside To Analyst Targets » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, SCCO has 20.34% upside from the recent share price of $39.72 if the average analyst target price of $47.80/share is reached, and analysts on average are expecting DE to reach a target price of $175.69/share, which is 18.37% above the recent price of $148.43. Below is a twelve month price history chart comparing the stock performance of HAL, SCCO, and DE: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With PXLG trading at a recent price near $51.49 per unit, that means that analysts see 17.99% upside for this ETF looking through to the average analyst targets of the underlying holdings. Below is a twelve month price history chart comparing the stock performance of HAL, SCCO, and DE: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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d85d710c-abca-46e1-9ac2-6a9875e403b3
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721920.0
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2018-11-06 00:00:00 UTC
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Noteworthy ETF Outflows: COMT, DE, BHP, TOT
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows-comt-de-bhp-tot-2018-11-06
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Commodities Select Strategy ETF (Symbol: COMT) where we have detected an approximate $82.0 million dollar outflow -- that's a 11.2% decrease week over week (from 19,700,000 to 17,500,000). Among the largest underlying components of COMT, in trading today Deere & Co. (Symbol: DE) is up about 0.8%, BHP Billiton Ltd (Symbol: BHP) is off about 0.5%, and Total SA (Symbol: TOT) is lower by about 0.6%. For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average:
Looking at the chart above, COMT's low point in its 52 week range is $34.741 per share, with $40.62 as the 52 week high point - that compares with a last trade of $37.31. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average: Looking at the chart above, COMT's low point in its 52 week range is $34.741 per share, with $40.62 as the 52 week high point - that compares with a last trade of $37.31. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average: Looking at the chart above, COMT's low point in its 52 week range is $34.741 per share, with $40.62 as the 52 week high point - that compares with a last trade of $37.31. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Commodities Select Strategy ETF (Symbol: COMT) where we have detected an approximate $82.0 million dollar outflow -- that's a 11.2% decrease week over week (from 19,700,000 to 17,500,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Commodities Select Strategy ETF (Symbol: COMT) where we have detected an approximate $82.0 million dollar outflow -- that's a 11.2% decrease week over week (from 19,700,000 to 17,500,000). For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average: Looking at the chart above, COMT's low point in its 52 week range is $34.741 per share, with $40.62 as the 52 week high point - that compares with a last trade of $37.31. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Commodities Select Strategy ETF (Symbol: COMT) where we have detected an approximate $82.0 million dollar outflow -- that's a 11.2% decrease week over week (from 19,700,000 to 17,500,000). For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average: Looking at the chart above, COMT's low point in its 52 week range is $34.741 per share, with $40.62 as the 52 week high point - that compares with a last trade of $37.31. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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85b09e20-7434-4058-8587-e9fbcbaa470d
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721921.0
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2018-11-02 00:00:00 UTC
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Emerson (EMR) to Post Q4 Earnings: Is a Beat in the Cards?
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DE
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https://www.nasdaq.com/articles/emerson-emr-to-post-q4-earnings%3A-is-a-beat-in-the-cards-2018-11-02
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nan
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nan
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Emerson Electric Co.EMR is scheduled to report fourth-quarter fiscal 2018 (ended Sep 2018) results on Nov 6, before market open.
The company pulled off an average positive earnings surprise of 5.13% over the last four quarters, beating estimates in each. Notably, in the last reported quarter, Emerson's earnings of 88 cents per share surpassed the Zacks Consensus Estimate by 2.33%.
We expect the company to score an earnings beat in the fiscal fourth quarter as well.
Why a Likely Positive Surprise
Our proven model shows that Emerson has the right combination of the two key ingredients to beat earnings. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is the case here as you will see below:
Earnings ESP : Emerson has an Earnings ESP of +2.00% as the Most Accurate Estimate is pegged at 94 cents, higher than the Zacks Consensus Estimate of 92 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Emerson Electric Co. Price and EPS Surprise
Emerson Electric Co. Price and EPS Surprise | Emerson Electric Co. Quote
Zacks Rank : The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Factors Driving Better-than-Expected Results
Emerson is well positioned to benefit from global infrastructure growth, as its core businesses hold dominant positions in markets tied to energy efficiency and infrastructure spending. Many of the company's products are key components for building infrastructure such as data centers, manufacturing plants and office buildings.
Also, environmental regulations are driving the need for new products, adding to the company's strength. Emerson believes that telecommunications infrastructure demand will continue to be one of the strongest growth drivers.
Going forward, the company expects increased turnaround activity and ongoing mid and small-sized Maintenance, Repair and Operations projects to bolster revenues of its Automation Solutions segment. On the other hand, continued growth in air conditioning demand will likely drive the top-line performance of Commercial & Residential Solutions segment.
Moreover, the Zacks Consensus Estimate for revenues from the Automation Solutions segment in the to-be-reported quarter is currently pegged at $3,218 million. It reported revenues of $2,870 million in the previous quarter. Revenues from Commercial & Residential Solutions segment are expected to be $1,683 million compared with $1,592 million reported in the fiscal third quarter.
Other Stocks to Consider
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Kennametal Inc. KMT has an Earnings ESP of +0.22% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company DE has an Earnings ESP of +1.55% and a Zacks Rank #3.
Sonoco Products Company SON has an Earnings ESP of +0.19% and a Zacks Rank #3.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Sonoco Products Company (SON): Free Stock Analysis Report
Kennametal Inc. (KMT): Free Stock Analysis Report
Emerson Electric Co. (EMR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the other hand, continued growth in air conditioning demand will likely drive the top-line performance of Commercial & Residential Solutions segment. Emerson Electric Co.EMR is scheduled to report fourth-quarter fiscal 2018 (ended Sep 2018) results on Nov 6, before market open. Why a Likely Positive Surprise Our proven model shows that Emerson has the right combination of the two key ingredients to beat earnings.
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Emerson Electric Co. Price and EPS Surprise Emerson Electric Co. Price and EPS Surprise | Emerson Electric Co. Quote Zacks Rank : The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat. Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Emerson Electric Co. (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Emerson Electric Co.EMR is scheduled to report fourth-quarter fiscal 2018 (ended Sep 2018) results on Nov 6, before market open.
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Emerson Electric Co. Price and EPS Surprise Emerson Electric Co. Price and EPS Surprise | Emerson Electric Co. Quote Zacks Rank : The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat. Other Stocks to Consider Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Kennametal Inc. KMT has an Earnings ESP of +0.22% and a Zacks Rank #2. Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Kennametal Inc. (KMT): Free Stock Analysis Report Emerson Electric Co. (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Other Stocks to Consider Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Kennametal Inc. KMT has an Earnings ESP of +0.22% and a Zacks Rank #2. Emerson Electric Co.EMR is scheduled to report fourth-quarter fiscal 2018 (ended Sep 2018) results on Nov 6, before market open. Why a Likely Positive Surprise Our proven model shows that Emerson has the right combination of the two key ingredients to beat earnings.
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8ebd6d69-030c-4bb9-a1fc-bc3c84a7dbc2
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721922.0
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2018-10-24 00:00:00 UTC
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Relative Strength Alert For Deere
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DE
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https://www.nasdaq.com/articles/relative-strength-alert-deere-2018-10-24
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks , according to a proprietary formula designed to identify those stocks that combine two important characteristics - strong fundamentals and a valuation that looks inexpensive. Deere & Co. (Symbol: DE) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Deere & Co. an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of DE entered into oversold territory, changing hands as low as $137 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Deere & Co., the RSI reading has hit 29.2 - by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 36.9. A falling stock price - all else being equal - creates a better opportunity for dividend investors to capture a higher yield. Indeed, DE's recent annualized dividend of 2.76/share (currently paid in quarterly installments) works out to an annual yield of 1.98% based upon the recent $139.63 share price.
A bullish investor could look at DE's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DE is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A falling stock price - all else being equal - creates a better opportunity for dividend investors to capture a higher yield. A bullish investor could look at DE's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks , according to a proprietary formula designed to identify those stocks that combine two important characteristics - strong fundamentals and a valuation that looks inexpensive. Indeed, DE's recent annualized dividend of 2.76/share (currently paid in quarterly installments) works out to an annual yield of 1.98% based upon the recent $139.63 share price. Click here to find out what 9 other oversold dividend stocks you need to know about » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks , according to a proprietary formula designed to identify those stocks that combine two important characteristics - strong fundamentals and a valuation that looks inexpensive. In the case of Deere & Co., the RSI reading has hit 29.2 - by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 36.9. Click here to find out what 9 other oversold dividend stocks you need to know about » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A stock is considered to be oversold if the RSI reading falls below 30. In the case of Deere & Co., the RSI reading has hit 29.2 - by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 36.9. Indeed, DE's recent annualized dividend of 2.76/share (currently paid in quarterly installments) works out to an annual yield of 1.98% based upon the recent $139.63 share price.
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3334edcd-370c-49f7-a804-7ae347ae87e4
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721923.0
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2018-10-22 00:00:00 UTC
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Lincoln Electric Holdings a Top Ranked SAFE Dividend Stock With 2.3% Yield (LECO)
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DE
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https://www.nasdaq.com/articles/lincoln-electric-holdings-top-ranked-safe-dividend-stock-23-yield-leco-2018-10-22
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nan
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nan
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Lincoln Electric Holdings, Inc. (Symbol: LECO) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 2.3% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel , Lincoln Electric Holdings, Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 0.62% of the SPDR S&P Dividend ETF ( SDY ), which holds $97,488,900 worth of LECO shares.
Lincoln Electric Holdings, Inc. (Symbol: LECO) made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S . Solid return - hefty yield and strong DividendRank characteristics; A. Accelerating amount - consistent dividend increases over time; F . Flawless history - never a missed or lowered dividend; E. Enduring - at least two decades of dividend payments.
The annualized dividend paid by Lincoln Electric Holdings, Inc. is $1.88/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 12/28/2018. Below is a long-term dividend history chart for LECO, which the report stressed as being of key importance.
LECO operates in the Industrial Machinery & Equipment sector, among companies like Deere & Co. ( DE ), and Illinois Tool Works, Inc. ( ITW ).
Top 25 S.A.F.E. Dividend Stocks Increasing Payments For Decades »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lincoln Electric Holdings, Inc. (Symbol: LECO) has been named to the Dividend Channel ''S.A.F.E. Below is a long-term dividend history chart for LECO, which the report stressed as being of key importance. LECO operates in the Industrial Machinery & Equipment sector, among companies like Deere & Co. ( DE ), and Illinois Tool Works, Inc. ( ITW ).
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Lincoln Electric Holdings, Inc. (Symbol: LECO) has been named to the Dividend Channel ''S.A.F.E. Lincoln Electric Holdings, Inc. (Symbol: LECO) made the "Dividend Channel S.A.F.E. Dividend Stocks Increasing Payments For Decades » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 2.3% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report. According to the ETF Finder at ETF Channel , Lincoln Electric Holdings, Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 0.62% of the SPDR S&P Dividend ETF ( SDY ), which holds $97,488,900 worth of LECO shares. Dividend Stocks Increasing Payments For Decades » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lincoln Electric Holdings, Inc. (Symbol: LECO) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 2.3% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report. Lincoln Electric Holdings, Inc. (Symbol: LECO) made the "Dividend Channel S.A.F.E.
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b365ce4b-0637-4ede-b40d-ec324d2c011c
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721924.0
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2018-10-19 00:00:00 UTC
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Resource Industries to Aid Caterpillar's (CAT) Q3 Earnings
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DE
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https://www.nasdaq.com/articles/resource-industries-to-aid-caterpillars-cat-q3-earnings-2018-10-19
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nan
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nan
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Caterpillar Inc. 's CAT results have always been eagerly anticipated by investors as this manufacturing behemoth is considered an indicator of national and global economy. Further, speculations have been rife regarding the impact of tariffs and the ongoing U.S- China imbroglio on the company's profits. The mining and construction equipment manufacturer has countered the impact of the tariffs by implementing price hikes and focusing on cost cutting. Benefits from these actions and positive momentum in its segments, particularly Resource Industries is likely to be reflected in its third-quarter results to be reported on Oct 23.
One-Year Price Performance
Notably, shares of Caterpillar have outperformed the industry in the past year,. The stock has gained 10% in comparison with the industry's increase of 8%.
Momentum in Resource Industries Strong, Raises Hope for Q3
The Resource Industries segment caters to customers using machinery in mining, quarry, waste and material handling applications. Products fall under three broad categories - surface mining, underground mining and material handling. In surface mining, Caterpillar competes with Komatsu Ltd. KMTUY , Hitachi Construction Machinery Co., Ltd. HTCMY , Deere & Company DE . While in underground mining, the segment competes with Atlas Copco AB, Liebherr-International AG, Sandvik AB, Komatsu, among others.
Given that the mining sector represents nearly 70% of the segment's revenues, it was hit hard by the mining slump triggered by a slowdown in China and excess supply. It suffered losses for six straight quarters before returning to profit in the first quarter of 2017. The segment has shown considerable improvement ever since. Resource Industries' sales improved 38% year over year to $2.4 billion in the second quarter of 2018, aided by higher demand for equipment across all regions.
Per the Zacks Consensus model, sales for the segment are pegged at $2,423 million in the third quarter 2018. It is expected to log the highest year-over-year improvement among Caterpillar's other segments - Construction (19%) and Energy & Transportation (26%) in the quarter to be reported. Favorable commodity prices are driving miners' profitability which in turn is likely to boost higher equipment sales. Increased mine production and higher machine utilization will also lead to improved aftermarket parts sales. Per our Zacks Consensus Model, growth in Resource Industries will be led by the Asia Pacific region with projected growth of 39% for the quarter. This will be followed by North America which is expected to log sales growth of 28%. Both EAME and Latin America are anticipated to witness growth of 24%.
Resource Industries segment is expected to report an operating profit of $409 million, a jump 81% from the prior-year quarter, despite higher freight costs and impact of tariffs. Meanwhile, the Construction and Energy & Transportation segments are expected to report 23% and 28% rise in operating profits, respectively.
Overall Earnings & Sales Expectations
The Zacks Consensus Estimate for total sales of $13.2 billion for the third-quarter indicates growth of 15.8% from the prior-year quarter. The Zacks Consensus Estimate for earnings is currently pegged at $2.83 for the third-quarter 2018,reflecting an improvement of 45% on a year-over-year basis. Favorable end markets and cost cutting actions will benefit results in the to-be-reported quarter despite material cost inflation and supply chain challenges.
Caterpillar Inc. Price and EPS Surprise
Caterpillar Inc. price-eps-surprise | Caterpillar Inc. Quote
Click here to know in details how all these segments will fare and the factors that will drive overall results in the third-quarter.
Currently, Caterpillar sports a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Caterpillar Inc. (CAT): Free Stock Analysis Report
Komatsu Ltd. (KMTUY): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
HITACHI CONSTR (HTCMY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Caterpillar Inc. 's CAT results have always been eagerly anticipated by investors as this manufacturing behemoth is considered an indicator of national and global economy. In surface mining, Caterpillar competes with Komatsu Ltd. KMTUY , Hitachi Construction Machinery Co., Ltd. HTCMY , Deere & Company DE . Resource Industries segment is expected to report an operating profit of $409 million, a jump 81% from the prior-year quarter, despite higher freight costs and impact of tariffs.
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In surface mining, Caterpillar competes with Komatsu Ltd. KMTUY , Hitachi Construction Machinery Co., Ltd. HTCMY , Deere & Company DE . Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report HITACHI CONSTR (HTCMY): Free Stock Analysis Report To read this article on Zacks.com click here. Caterpillar Inc. 's CAT results have always been eagerly anticipated by investors as this manufacturing behemoth is considered an indicator of national and global economy.
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Resource Industries' sales improved 38% year over year to $2.4 billion in the second quarter of 2018, aided by higher demand for equipment across all regions. Resource Industries segment is expected to report an operating profit of $409 million, a jump 81% from the prior-year quarter, despite higher freight costs and impact of tariffs. Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report HITACHI CONSTR (HTCMY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Resource Industries segment is expected to report an operating profit of $409 million, a jump 81% from the prior-year quarter, despite higher freight costs and impact of tariffs. Caterpillar Inc. 's CAT results have always been eagerly anticipated by investors as this manufacturing behemoth is considered an indicator of national and global economy. Products fall under three broad categories - surface mining, underground mining and material handling.
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ef676d77-090a-43a8-951b-29940a84be36
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721925.0
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2018-10-18 00:00:00 UTC
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RSP, HRS, DE, CMI: ETF Outflow Alert
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DE
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https://www.nasdaq.com/articles/rsp-hrs-de-cmi-etf-outflow-alert-2018-10-18
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $87.0 million dollar outflow -- that's a 0.6% decrease week over week (from 151,452,663 to 150,602,663). Among the largest underlying components of RSP, in trading today Harris Corp. (Symbol: HRS) is down about 0.1%, Deere & Co. (Symbol: DE) is off about 1.1%, and Cummins, Inc. (Symbol: CMI) is lower by about 2.6%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average:
Looking at the chart above, RSP's low point in its 52 week range is $94.9701 per share, with $108.8853 as the 52 week high point - that compares with a last trade of $102.06. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $94.9701 per share, with $108.8853 as the 52 week high point - that compares with a last trade of $102.06. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $94.9701 per share, with $108.8853 as the 52 week high point - that compares with a last trade of $102.06. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $87.0 million dollar outflow -- that's a 0.6% decrease week over week (from 151,452,663 to 150,602,663).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $87.0 million dollar outflow -- that's a 0.6% decrease week over week (from 151,452,663 to 150,602,663). For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $94.9701 per share, with $108.8853 as the 52 week high point - that compares with a last trade of $102.06. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $94.9701 per share, with $108.8853 as the 52 week high point - that compares with a last trade of $102.06. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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89c0ceb8-cc43-4326-9f55-8c431681263d
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721926.0
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2018-10-17 00:00:00 UTC
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Caterpillar (CAT) to Report Q3 Earnings: What's in the Offing?
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DE
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https://www.nasdaq.com/articles/caterpillar-cat-to-report-q3-earnings%3A-whats-in-the-offing-2018-10-17
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nan
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nan
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Caterpillar Inc.CAT is slated to report third-quarter 2018 results on Oct 23 before the opening bell. Notably, the mining and construction equipment behemoth delivered a year-over-year improvement of 99% and 24% in earnings and revenues, respectively, in the second quarter of 2018. Both the top and bottom line also beat the Zacks Consensus Estimate. Continued strength in many of its end markets and persistent focus on cost control aided results. This marked the company's sixth consecutive quarter of both top and bottom-line growth, following a string of dismal performances for four years.
Notably, Caterpillar outpaced earnings estimates in the trailing four quarters, recording an average positive earnings surprise of 31.79%. Consequently, investors are keen to know whether Caterpillar will be able to maintain the momentum in the third quarter of 2018 as well.
The company's share price has outperformed the industry in the past year. The shares gained 8.1%, ahead of the industry's growth of 7.1%. An earnings beat is likely to fuel the price momentum further.
Looking at the upbeat estimates for the both earnings and revenues for the third quarter, it seems likely that the company will deliver year-over-year improvement on both metrics. This is also supported by strong third-quarter projections for its segments - Machinery, Energy & Transportation which generates a major chunk of revenues and earnings. Notably, performance will be driven by its positive end markets namely construction, mining and energy.
Let's delve deeper and take a look at factors that might influence third-quarter results.
Improved Markets Will Drive Top-Line Growth
Per the Zacks Consensus Estimate, the Machinery, Energy & Transportation segment, which contributed approximately 95% of total revenues in second-quarter 2018, is expected to log year-over-year growth of 19% in revenues to $12.8 billion in the third quarter of 2018. We believe the company will witness growth in all its segments - Construction Industries, Resource Industries, Energy & Transportation.
At the end of second-quarter 2018, Caterpillar's backlog was at $17.7 billion, an improvement of $2.9 billion year over year aided by increase at all segments. This bodes well for performance in the to-be-reported quarter.
The Zacks Consensus Estimate for total sales of $13.2 billion for the third-quarter indicates growth of 15.8% from the prior-year quarter. Sales growth will be driven by solid momentum across all its segments. In the Resource Industries segment, sales is expected to be around $2,423 million as per the Zacks estimates, a projected year-over-year growth of 30%. Sales will be driven by continued strong demand for aftermarket parts. Further, miners are resuming capital spending which bodes well for the segment.
The Construction Industries is also anticipated to remain strong in the to-be-reported quarter as China and other APAC countries will continue to drive growth on the back of investments in infrastructure. In North America, continued improvement in residential and non-residential construction as well as revival in infrastructure demand will drive revenues. Per the Zacks Consensus model, the Construction segment's sales is projected at $5,760 million for the to-be-reported quarter, an expected year-over-year growth of 19%.
For the Energy & Transportation segment, sales to the Oil and Gas sector is likely to increase in the quarter, led by reciprocating engines for gas compression and well-servicing activity in North America. Sales to the Transportation sector is likely to benefit from recent acquisitions in rail services. Per the Zacks Consensus model, the segment's sales is expected to grow 26% year-over-year to $4,972 million in the to-be-reported quarter.
Focus on Cost Control to Boost Profits
Caterpillar is undergoing significant restructuring and cost reduction initiatives which have been benefiting its margins. In fact, the third quarter is anticipated to be no exception to the trend.
For the to-be-reported quarter, the Zacks Consensus Estimate for Profit before Taxes for the Machinery, Energy & Transportation segment is pegged at $2 billion, a 46% improvement from the prior year. This can be attributed to a rise of 23% in the Construction segment's operating profit to $1.1 billion, per the latest Zacks Consensus Estimate. Further, the Resource Industries segment is expected to report an operating profit of $409 million, a substantial improvement from the prior-year quarter figure of $226 million. The Energy & Transportation segment is anticipated to report operating profit of $959 million, a rise of 28% from the year-ago quarter.
Caterpillar Inc. Price and EPS Surprise
Caterpillar Inc. price-eps-surprise | Caterpillar Inc. Quote
The Zacks Consensus Estimate for Caterpillar's earnings has moved up 9% over the last 90 days and is currently pegged at $2.832 for the third quarter. The estimate reflects an improvement of 44.6% on a year-over-year basis.
What Our Model Indicates
Our proven model suggests that Caterpillar is likely to beat estimates in the quarter to be reported as it has the right combination of two key ingredients. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +1.00%. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Caterpillar has a Zacks Rank #3, which, when combined with a positive ESP, makes us confident of earnings beat.
We caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Worth a Look
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Tetra Tech, Inc. TTEK has an Earnings ESP of +0.96% and a Zacks Rank #2 (Buy). Its shares have gained 40% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Flowserve Corporation FLS has an Earnings ESP of +1.72% and a Zacks Rank #2. The stock has gained 16% in a year's time.
Deere & Company DE has an Earnings ESP of +1.39% and a Zacks Rank #3. The company's shares have been up 18% during the past year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Flowserve Corporation (FLS): Free Stock Analysis Report
Tetra Tech, Inc. (TTEK): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Notably, the mining and construction equipment behemoth delivered a year-over-year improvement of 99% and 24% in earnings and revenues, respectively, in the second quarter of 2018. Continued strength in many of its end markets and persistent focus on cost control aided results. Looking at the upbeat estimates for the both earnings and revenues for the third quarter, it seems likely that the company will deliver year-over-year improvement on both metrics.
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Per the Zacks Consensus model, the Construction segment's sales is projected at $5,760 million for the to-be-reported quarter, an expected year-over-year growth of 19%. Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the mining and construction equipment behemoth delivered a year-over-year improvement of 99% and 24% in earnings and revenues, respectively, in the second quarter of 2018.
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Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the mining and construction equipment behemoth delivered a year-over-year improvement of 99% and 24% in earnings and revenues, respectively, in the second quarter of 2018. Continued strength in many of its end markets and persistent focus on cost control aided results.
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Per the Zacks Consensus model, the Construction segment's sales is projected at $5,760 million for the to-be-reported quarter, an expected year-over-year growth of 19%. Notably, the mining and construction equipment behemoth delivered a year-over-year improvement of 99% and 24% in earnings and revenues, respectively, in the second quarter of 2018. Continued strength in many of its end markets and persistent focus on cost control aided results.
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87ad5c26-d161-4e20-bf7a-d3f1381afb36
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721927.0
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2018-10-16 00:00:00 UTC
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Technology to Aid Farm Equipment Industry Amid Tariff Woes
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DE
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https://www.nasdaq.com/articles/technology-to-aid-farm-equipment-industry-amid-tariff-woes-2018-10-16
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nan
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nan
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The Manufacturing - Farm Equipment industry has been witnessing a downtrend over the past five years since peaking in 2013. The decline was mainly due to the impact of low commodity prices and sluggish farm incomes. The industry's performance has also been impaired by decline in capital spending and fall in demand due to the appreciating dollar. Nevertheless, farm equipment demand has recently picked up mainly driven by the need to replace the aging equipment. So, until there is a meaningful improvement in commodity prices that can bolster farm income, replacement demand will fuel its results.
Tariffs Hurting Manufacturing - Farm Equipment Industry
Tariffs imposed on steel and aluminum are hurting farm equipment manufacturers. Rising input costs could potentially slow margin improvement and constrain earnings growth of companies. In addition, lower profit margins have made the industry less attractive to new entrants, making it more competitive.
Also, China has begun levying retaliatory tariffs on U.S. agricultural exports, particularly soybeans, sorghum, and live hogs.
Recently, Trump imposed a new tariff of 10% on Chinese goods worth $200 billion. In turn, China has warned of retaliation with expected tariffs on American goods worth $60 billion. Thus, tariff issues remain a major roadblock for farm-equipment sales.
Manufacturing - Farm Equipment Rides on Technology Upswing
With advancements on the technological front, farm-equipment manufacturers are targeting new customer bases by providing innovative and cost-effective products. The technology upgradation in agricultural automation and robotics has been fueling application of farm equipment.
Further, increased adoption of technology in agriculture will boost crop yield, streamline operations, and increase overall efficiency, which will help drive farmer's income and in turn, enhance their investments in farm equipment. Lately, farmers are focusing on sustainable agriculture practices and benefiting from the introduction of precision farming as well.
Industry Performance Vs the S&P 500
The Zacks Manufacturing - Farm Equipment industry has outperformed the broader Industrial Products Sector over the past year. The stocks in this industry have collectively gained around 9% in a year's time, in line with the S&P 500 Composite. However, the Zacks Industrial Products Sector has lost around 7% during the same time frame.
The Zacks Manufacturing - Farm Equipment industry currently carries a Zacks Industry Rank #177, which places it at the bottom 31% of 256 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Bottom Line
The Manufacturing - Farm Equipment industry is already plagued with tariff challenges, while shift from manual operations to automated methods, replacement demand, rising urbanization rate and growing population remain catalysts for growth.
While none of the stocks in Manufacturing - Farm Equipment industry currently sport a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy), investors may want to hold on to the Zacks Rank #3 (Hold) stocks. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & CompanyDE : This Moline, IL-based company has a Zacks Rank #3. The Zacks Consensus Estimate for earnings for fiscal 2018 indicates year-over-year growth of 42%. Moreover, the company's earnings outpaced the Zacks Consensus Estimates in two out of the trailing four quarters, with an average positive beat of 2.06%. The Zacks Consensus Estimate for the current-year EPS has inched up 0.1% over the last 30 days. The stock has returned 16% over the past year.
Titan International, Inc.TWI : This Quincy, IL-based company is another Zacks Rank #3 stock. The Zacks Consensus Earnings Estimate for fiscal 2018 indicates year-over-year growth of 147%. The company has delivered an average positive earnings surprise of 108.27% over the trailing four quarters.
We recommend investors to stay away from the following stocks as they presently have an unfavorable Zacks Rank. They have also gone negative revisions in their estimates lately.
AGCO CorporationAGCO : This Duluth, GA-based company carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the current-year EPS has edged down 0.8% over the last 90 days.
Briggs & Stratton CorporationBGG : This Wauwatosa, WI-based company has a Zacks Rank #4. The Zacks Consensus Estimate for the current-year EPS has declined 9% over the last 90 days.
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Titan International, Inc. (TWI): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The industry's performance has also been impaired by decline in capital spending and fall in demand due to the appreciating dollar. So, until there is a meaningful improvement in commodity prices that can bolster farm income, replacement demand will fuel its results. Bottom Line The Manufacturing - Farm Equipment industry is already plagued with tariff challenges, while shift from manual operations to automated methods, replacement demand, rising urbanization rate and growing population remain catalysts for growth.
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Click to get this free report Titan International, Inc. (TWI): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The decline was mainly due to the impact of low commodity prices and sluggish farm incomes. The industry's performance has also been impaired by decline in capital spending and fall in demand due to the appreciating dollar.
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Industry Performance Vs the S&P 500 The Zacks Manufacturing - Farm Equipment industry has outperformed the broader Industrial Products Sector over the past year. The decline was mainly due to the impact of low commodity prices and sluggish farm incomes. The industry's performance has also been impaired by decline in capital spending and fall in demand due to the appreciating dollar.
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Industry Performance Vs the S&P 500 The Zacks Manufacturing - Farm Equipment industry has outperformed the broader Industrial Products Sector over the past year. Bottom Line The Manufacturing - Farm Equipment industry is already plagued with tariff challenges, while shift from manual operations to automated methods, replacement demand, rising urbanization rate and growing population remain catalysts for growth. The decline was mainly due to the impact of low commodity prices and sluggish farm incomes.
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66b137b9-bde4-483c-8ccb-e5adf957d7d8
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721928.0
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2018-10-16 00:00:00 UTC
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DE Crosses Above Key Moving Average Level
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DE
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https://www.nasdaq.com/articles/de-crosses-above-key-moving-average-level-2018-10-16
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nan
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nan
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.01, changing hands as high as $152.03 per share. Deere & Co. shares are currently trading up about 1.9% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $127.53 per share, with $175.26 as the 52 week high point - that compares with a last trade of $151.73.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.01, changing hands as high as $152.03 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $127.53 per share, with $175.26 as the 52 week high point - that compares with a last trade of $151.73. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.01, changing hands as high as $152.03 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $127.53 per share, with $175.26 as the 52 week high point - that compares with a last trade of $151.73. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.01, changing hands as high as $152.03 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $127.53 per share, with $175.26 as the 52 week high point - that compares with a last trade of $151.73. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.01, changing hands as high as $152.03 per share. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Co. shares are currently trading up about 1.9% on the day.
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32707a8c-4bb1-4293-b1dc-779d0773717c
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721929.0
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2018-10-16 00:00:00 UTC
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Caterpillar (CAT) Stock Looks Like A Strong Buy Ahead of Q3 Earnings
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DE
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https://www.nasdaq.com/articles/caterpillar-cat-stock-looks-strong-buy-ahead-q3-earnings-2018-10-16
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nan
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nan
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Caterpillar CAT is scheduled to report its third quarter financial results on Tuesday, October 23. Shares of the construction and mining equipment giant have fallen this year, but Caterpillar's outlook appears strong despite trade war concerns. So, let's see why CAT stock looks like a strong buy ahead of its Q3 earnings release.
Recent News & Overview
At this point the news about Trump's tariffs are old, but their impacts are being felt by many companies and industries. The steel and aluminum tariffs, along with the ongoing trade war between the U.S. and China have investors nervous about Caterpillar's short and long-term profitability. Yet, CAT and its management seem confident that their plans to counter the tariffs will help Caterpillar expand both its top and bottom lines amid rising costs and uncertainty.
Caterpillar, which estimated that the tariffs will up its costs by up to $200 million between July and December, plans to offset the impact through price increases and cost cutting. Even before the tariffs were rolled out, the Illinois-based company started to become more efficient. For example, the firm produces more equipment at some plants with 30% fewer employees .
Furthermore, Caterpillar said that it has designed new machines with 20% fewer parts, which lowers the firm's steel consumption, among other benefits. "It improves safety, it improves the quality, it improves the cost," CAT executive Tony Fassino told Reuters recently. Plus, Caterpillar raised its full-year profit outlook in Q2.
We can see from CAT's price movement chart that it has outpaced its industry over the last five years. Shares of Caterpillar are also still up roughly 63% over the last 24 months and 9% during the past year despite its recent downturn. Investors should also note that CAT stock closed Monday at $141.80 per share. This means Caterpillar stock seems to be in a potentially solid buying position sitting approximately 18% below its 52-week high of $173.24.
Valuation
Maybe more important than Caterpillar's current price, is the fact that CAT is trading at 11.2X forward 12-month Zacks Consensus EPS estimates. This represents a discount compared to its industry's 14.6X average-which includes Deere DE , Terex TEX , and Manitowoc MTW -and the S&P's 16.4X.
Plus, Caterpillar has traded as high as 24.7X over the last year, with a one-year median of 15.4X. We can also see that CAT stock is trading near its three-year lows at the moment, which means it's not too much of a stretch to say that Caterpillar stock appears relatively cheap at the moment-especially considering its growth prospects.
Outlook
Looking ahead, Caterpillar's Q3 revenues are projected to surge by roughly 15.8% to reach $13.21 billion, based on our current Zacks Consensus Estimate. Meanwhile, the company's full-year revenues are expected to surge over 20%.
At the other end of the income statement CAT's outlook is even more impressive. Caterpillar's adjusted third-quarter earnings are projected to soar by 45.1% to hit $2.83 per share. And the construction and mining equipment powerhouse's adjusted full-year EPS figure is expected to expand by 69.3%.
Bottom Line
We can also see that Caterpillar's earnings estimates for Q3 and fiscal 2018 and 2019 have all climbed in the last seven days. This positive earnings revision movement helps Caterpillar earn a Zacks Rank #1 (Strong Buy). Caterpillar also rocks an "A" VGM score and has topped our quarterly earnings estimates for nine straight periods.
Caterpillar is expected to report its quarterly financial results on Tuesday, October 23.
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Caterpillar Inc. (CAT): Free Stock Analysis Report
Terex Corporation (TEX): Free Stock Analysis Report
The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the construction and mining equipment giant have fallen this year, but Caterpillar's outlook appears strong despite trade war concerns. Yet, CAT and its management seem confident that their plans to counter the tariffs will help Caterpillar expand both its top and bottom lines amid rising costs and uncertainty. The steel and aluminum tariffs, along with the ongoing trade war between the U.S. and China have investors nervous about Caterpillar's short and long-term profitability.
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Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of the construction and mining equipment giant have fallen this year, but Caterpillar's outlook appears strong despite trade war concerns. The steel and aluminum tariffs, along with the ongoing trade war between the U.S. and China have investors nervous about Caterpillar's short and long-term profitability.
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We can also see that CAT stock is trading near its three-year lows at the moment, which means it's not too much of a stretch to say that Caterpillar stock appears relatively cheap at the moment-especially considering its growth prospects. Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of the construction and mining equipment giant have fallen this year, but Caterpillar's outlook appears strong despite trade war concerns.
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Shares of the construction and mining equipment giant have fallen this year, but Caterpillar's outlook appears strong despite trade war concerns. The steel and aluminum tariffs, along with the ongoing trade war between the U.S. and China have investors nervous about Caterpillar's short and long-term profitability. Yet, CAT and its management seem confident that their plans to counter the tariffs will help Caterpillar expand both its top and bottom lines amid rising costs and uncertainty.
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721930.0
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2018-10-15 00:00:00 UTC
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Dover (DOV) to Report Q3 Earnings: What's in the Offing?
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https://www.nasdaq.com/articles/dover-dov-to-report-q3-earnings%3A-whats-in-the-offing-2018-10-15
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Dover CorporationDOV is expected to report third-quarter 2018 results on Oct 18.
In the last reported quarter, the company posted a positive earnings surprise of 7.4%. Notably, Dover surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 5.81%.
Let's see how things are shaping up prior to this announcement.
Dover Corporation Price and EPS Surprise
Dover Corporation Price and EPS Surprise | Dover Corporation Quote
Factors at Play
Dover's results are expected to benefit from strong booking trends in the third quarter. The company's bookings increased roughly 7% year over year at the end of second-quarter 2018. Backlog also increased to $1.38 billion at the end of the second quarter from $1.26 billion reported at the end of the year-ago quarter.
Backed by solid bookings growth, the company is poised for an improved third-quarter 2018 performance. Further, its cost-reduction initiative, which includes overhead reduction, will boost margins. Dover will also gain from its focus on product digitization, e-commerce, new product development and inorganic investment.
The Zacks Consensus Estimate for Dover's earnings inched up roughly 0.8% over the last 60 days and is currently pinned at $1.29 for the third quarter. The earnings estimate reflects year-over-year growth of around 11%. However, the Zacks Consensus Estimate for total sales of $1.76 billion for the quarter reflects a decline of 12.5% from the prior-year quarter, mainly affected by tariffs imposed on steel and aluminum and foreign exchange volatility.
Coming to the segments, the Zacks Consensus Estimate for net sales of Dover's Fluids segment is pegged at $683 million for the quarter, representing year-over-year increase of 21%. The segment will benefit from sound growth in the Pumps, and hygienic and pharma businesses.
However, in Dover's Fluids segment, the DFS business posted negative earnings conversion in the second quarter as a result of continued operational costs due to the European footprint consolidation, significant supply-chain costs, and accelerated fees and discrete items. The company expects that a significant portion of these issues will hurt the third-quarter earnings.
The Zacks Consensus Estimate for Refrigeration and Food Equipment segment's net sales is $412 million for the Sep-end quarter, representing year-over-year decline of 6%. Though the segment is anticipated to grow on acquisitions, prevalent softness in the retail refrigeration markets is a concern.
Meanwhile, the Zacks Consensus Estimate indicates that Dover's Engineered Systems segment's revenues will reach $662 million in the third quarter, representing a year-over-year improvement of 2.5%.
Share Price Performance
Over the past year, Dover has underperformed the industry with respect to price performance mainly due to disappointing conditions in retail refrigeration. The stock has lost around 13%, while the industry has recorded loss of around 4% during the same time frame.
Zacks Rank & Key Picks
Dover carries a Zacks Rank #3 (Hold).
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Tetra Tech, Inc. TTEK has an Earnings ESP of +0.96% and a Zacks Rank #1 (Strong Buy). Its shares have gained 35% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here .
Flowserve Corporation FLS has an Earnings ESP of +1.72% and a Zacks Rank #2 (Buy). The stock has gained 12% in a year's time.
Deere & Company DE has an Earnings ESP of +1.39% and a Zacks Rank #3. The company's shares have been up 16% during the past year.
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Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
Flowserve Corporation (FLS): Free Stock Analysis Report
Tetra Tech, Inc. (TTEK): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Consensus Estimate for Refrigeration and Food Equipment segment's net sales is $412 million for the Sep-end quarter, representing year-over-year decline of 6%. Notably, Dover surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 5.81%. Further, its cost-reduction initiative, which includes overhead reduction, will boost margins.
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Click to get this free report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, Dover surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 5.81%. Further, its cost-reduction initiative, which includes overhead reduction, will boost margins.
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Click to get this free report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, Dover surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 5.81%. Further, its cost-reduction initiative, which includes overhead reduction, will boost margins.
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Notably, Dover surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 5.81%. Further, its cost-reduction initiative, which includes overhead reduction, will boost margins. Dover will also gain from its focus on product digitization, e-commerce, new product development and inorganic investment.
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721931.0
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2018-10-15 00:00:00 UTC
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Noteworthy Monday Option Activity: VUZI, DE, HUN
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-vuzi-de-hun-2018-10-15
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Vuzix Corp (Symbol: VUZI), where a total of 1,652 contracts have traded so far, representing approximately 165,200 underlying shares. That amounts to about 51.8% of VUZI's average daily trading volume over the past month of 318,980 shares. Particularly high volume was seen for the $5 strike call option expiring January 18, 2019 , with 1,021 contracts trading so far today, representing approximately 102,100 underlying shares of VUZI. Below is a chart showing VUZI's trailing twelve month trading history, with the $5 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 11,804 contracts, representing approximately 1.2 million underlying shares or approximately 51.2% of DE's average daily trading volume over the past month, of 2.3 million shares. Especially high volume was seen for the $165 strike call option expiring November 02, 2018 , with 3,055 contracts trading so far today, representing approximately 305,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange:
And Huntsman Corp (Symbol: HUN) saw options trading volume of 13,843 contracts, representing approximately 1.4 million underlying shares or approximately 50.8% of HUN's average daily trading volume over the past month, of 2.7 million shares. Especially high volume was seen for the $24 strike put option expiring January 18, 2019 , with 8,015 contracts trading so far today, representing approximately 801,500 underlying shares of HUN. Below is a chart showing HUN's trailing twelve month trading history, with the $24 strike highlighted in orange:
For the various different available expirations for VUZI options , DE options , or HUN options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $5 strike call option expiring January 18, 2019 , with 1,021 contracts trading so far today, representing approximately 102,100 underlying shares of VUZI. Especially high volume was seen for the $165 strike call option expiring November 02, 2018 , with 3,055 contracts trading so far today, representing approximately 305,500 underlying shares of DE. Especially high volume was seen for the $24 strike put option expiring January 18, 2019 , with 8,015 contracts trading so far today, representing approximately 801,500 underlying shares of HUN.
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Particularly high volume was seen for the $5 strike call option expiring January 18, 2019 , with 1,021 contracts trading so far today, representing approximately 102,100 underlying shares of VUZI. Below is a chart showing VUZI's trailing twelve month trading history, with the $5 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,804 contracts, representing approximately 1.2 million underlying shares or approximately 51.2% of DE's average daily trading volume over the past month, of 2.3 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange: And Huntsman Corp (Symbol: HUN) saw options trading volume of 13,843 contracts, representing approximately 1.4 million underlying shares or approximately 50.8% of HUN's average daily trading volume over the past month, of 2.7 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Vuzix Corp (Symbol: VUZI), where a total of 1,652 contracts have traded so far, representing approximately 165,200 underlying shares. Below is a chart showing VUZI's trailing twelve month trading history, with the $5 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,804 contracts, representing approximately 1.2 million underlying shares or approximately 51.2% of DE's average daily trading volume over the past month, of 2.3 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange: And Huntsman Corp (Symbol: HUN) saw options trading volume of 13,843 contracts, representing approximately 1.4 million underlying shares or approximately 50.8% of HUN's average daily trading volume over the past month, of 2.7 million shares.
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Particularly high volume was seen for the $5 strike call option expiring January 18, 2019 , with 1,021 contracts trading so far today, representing approximately 102,100 underlying shares of VUZI. Below is a chart showing VUZI's trailing twelve month trading history, with the $5 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,804 contracts, representing approximately 1.2 million underlying shares or approximately 51.2% of DE's average daily trading volume over the past month, of 2.3 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange: And Huntsman Corp (Symbol: HUN) saw options trading volume of 13,843 contracts, representing approximately 1.4 million underlying shares or approximately 50.8% of HUN's average daily trading volume over the past month, of 2.7 million shares.
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db8ce1da-71d7-4ee1-8b53-41a86999dbd5
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721932.0
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2018-10-12 00:00:00 UTC
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What To Expect From Caterpillar's Q3 Earnings
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https://www.nasdaq.com/articles/what-expect-caterpillars-q3-earnings-2018-10-12
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Caterpillar ( CAT ) is scheduled to announce its third quarter results on Tuesday, October 23. Consensus market estimates call for the company to report revenue of $13.2 billion and adjusted EPS of $2.84. Construction Industries, which generates nearly 42% of the company's revenues, grew by over 30% and drove most of Caterpillar's growth in the first half of 2018. The robust performance of this division was largely due to increased construction activities in most end markets - driven primarily by China and North America. The Energy & Transportation segment, which generates nearly 38% of the company's revenue, grew by about 23% as a result of strong demand for reciprocating engines, aftermarket parts, and improved rail activity in North America. We believe strong construction spending, coupled with the strengthening of the U.S. economy and healthy order backlog in most end markets, should drive Q3 results. Further, Caterpillar's cost cutting measures should help it offset the recently imposed tariffs. Below we take a look at what to expect when the company reports earnings.
We have a $168 price estimate for Caterpillar, which is substantially higher than the current market price. The charts have been made using our new, interactive platform. You can click here for our dashboard on Our Outlook For Caterpillar In Q3 to modify different drivers, and see their impact on the revenue, earnings, and price estimate for Caterpillar.
Factors Driving Near Term Growth
Construction Industries holds significant growth potential for Caterpillar, as a result of the robust demand for its products across the Asia Pacific, North America, and EMEA markets, coupled with significant investments in nonresidential construction, infrastructure, and oil & gas related projects. Construction spending is forecasted to remain strong in the medium term , driven by improved U.S. macroeconomic conditions, which should boost the U.S. Housing market and construction spending. Further, the proposed remodeling of existing infrastructure in Europe, coupled with the increasing significance of smart cities should aid increased infrastructure spending and provide for a meaningful growth opportunity. Additionally, rising prosperity and population, together with improved construction activities in growing markets such as China and India should drive spending.
The Energy and Transportation segment is the most diverse division and caters to a wide array of end markets. This division saw robust growth in the first half of 2018 as a result of increased demand for its reciprocating engines, aftermarket parts, gas powered applications, and improved rail activity in North America. Rising population and prosperity of developing nations should likely lead to a rise in demand for energy. We expect this increased demand for energy to increase long-term demand for engines and turbines. Further, the increase in rail traffic in North America should boost transportation & power generation sales.
The Resource Industry segment enjoyed a strong first half of 2018, as a result of higher replacement demand and demand for new mining equipment, which was driven by increased demand for fossil fuels in emerging economies, resulting in strong order activity. Further, recovery in commodity prices, coupled with full scale fleet replacement should drive increased end-user demand for new equipment. In addition, emerging economies will continue to drive the growth of the Mining Industry, which should lead to increased mine production and greater machine utilization, which in turn should drive spare part sales.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Energy & Transportation segment, which generates nearly 38% of the company's revenue, grew by about 23% as a result of strong demand for reciprocating engines, aftermarket parts, and improved rail activity in North America. This division saw robust growth in the first half of 2018 as a result of increased demand for its reciprocating engines, aftermarket parts, gas powered applications, and improved rail activity in North America. We believe strong construction spending, coupled with the strengthening of the U.S. economy and healthy order backlog in most end markets, should drive Q3 results.
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The Energy & Transportation segment, which generates nearly 38% of the company's revenue, grew by about 23% as a result of strong demand for reciprocating engines, aftermarket parts, and improved rail activity in North America. This division saw robust growth in the first half of 2018 as a result of increased demand for its reciprocating engines, aftermarket parts, gas powered applications, and improved rail activity in North America. The Resource Industry segment enjoyed a strong first half of 2018, as a result of higher replacement demand and demand for new mining equipment, which was driven by increased demand for fossil fuels in emerging economies, resulting in strong order activity.
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The Energy & Transportation segment, which generates nearly 38% of the company's revenue, grew by about 23% as a result of strong demand for reciprocating engines, aftermarket parts, and improved rail activity in North America. Factors Driving Near Term Growth Construction Industries holds significant growth potential for Caterpillar, as a result of the robust demand for its products across the Asia Pacific, North America, and EMEA markets, coupled with significant investments in nonresidential construction, infrastructure, and oil & gas related projects. The Resource Industry segment enjoyed a strong first half of 2018, as a result of higher replacement demand and demand for new mining equipment, which was driven by increased demand for fossil fuels in emerging economies, resulting in strong order activity.
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The Energy & Transportation segment, which generates nearly 38% of the company's revenue, grew by about 23% as a result of strong demand for reciprocating engines, aftermarket parts, and improved rail activity in North America. Factors Driving Near Term Growth Construction Industries holds significant growth potential for Caterpillar, as a result of the robust demand for its products across the Asia Pacific, North America, and EMEA markets, coupled with significant investments in nonresidential construction, infrastructure, and oil & gas related projects. We believe strong construction spending, coupled with the strengthening of the U.S. economy and healthy order backlog in most end markets, should drive Q3 results.
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721933.0
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2018-10-12 00:00:00 UTC
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Focus on Digital Marketing to Aid Grainger (GWW) Q3 Earnings
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https://www.nasdaq.com/articles/focus-on-digital-marketing-to-aid-grainger-gww-q3-earnings-2018-10-12
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W.W. Grainger, Inc.GWW is expected to report third-quarter 2018 results on Oct 16, before the opening bell.
Grainger surpassed the Zacks Consensus Estimate in each of the trailing four quarters, generating an average positive surprise of 21.47%. In the last reported quarter, it delivered a positive earnings surprise of 15.61%.
Let's see how things are shaping up for this announcement.
W.W. Grainger, Inc. Price and EPS Surprise.
W.W. Grainger, Inc. Price and EPS Surprise | W.W. Grainger, Inc. Quote
Why a Likely Positive Surprise?
Our proven model shows that Grainger is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
Earnings ESP: The Earnings ESP for Grainger is +0.98%. This is because the Most Accurate Estimate of $4.00 comes in higher than the Zacks Consensus Estimate of $3.96. A favorable Earnings ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Grainger currently sports a Zacks Rank #1. It should be noted that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings.
Conversely, stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered going into an earnings announcement.
The combination of Grainger's Zacks Rank #1 and Earnings ESP of +0.98% makes us confident of a likely earnings beat.
Factors to Influence Q3 Results
In the third quarter, Grainger is poised to gain from its focus on digital marketing. The company witnessed improvement in digital and off-line marketing mainly buoyed by the launch of Grainger.com and other electronic purchasing platforms in the United States and across all single channel online businesses. Thus, the company remains focused on improving the end-to-end customer experience by making investments in its e-commerce and digital capabilities, and executing continued improvement initiatives within the supply chain. Notably, it intends to continue to reduce the company's cost base.
However, Grainger's margins will be impacted in the Sep-end quarter as its suppliers resorted to price hikes to combat the effect of tariffs.
Notably, the company remains cautious about its Canada business. Although Grainger is focused on improving its gross margin and reducing the cost structure in Canada, increased expenses have been plaguing this segment. Further, the company's oil and gas, and energy exposure in the nation is very high. Thus, fluctuating oil prices may hamper its results. Per the Zacks Consensus Estimates, net sales in the Canada segment are likely to drop around 6% to $177 million in the quarter under review. The segment will also likely report an adjusted operating loss of $4 million, narrower than the operating loss of $10 million reported in third-quarter 2017.
Furthermore, the Zacks Consensus Estimate for Grainger's quarterly sales in the Unites States is $2.16 billion, reflecting around 7% year-over-year rise. The Zacks Consensus Estimate for adjusted operating income of the segment is pegged at $341 million for the to-be-reported quarter compared to $303 million recorded in the prior-year quarter. Its efforts to strengthen relationships with both large- and mid-sized U.S. customers by executing high-value sales and service model remain catalysts for the segment's performance in the quarter to be reported.
In addition, the Zacks Consensus Estimate for Grainger's earnings per share is pegged at $3.96 for the Jul-Sep quarter, reflecting year-over-year growth of 36.6%. The Zacks Consensus Estimate for total sales of $2.85 billion also indicates nearly 8% increase from the prior-year quarter.
Share Price Performance
Grainger's price performance has been impressive over the past year. Shares of the company have appreciated around 74%, outperforming growth of 33% recorded by the industry .
Other Stocks to Consider
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Tetra Tech, Inc.TTEK has an Earnings ESP of +0.96% and a Zacks Rank #1. Its shares have gained 34% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here .
Flowserve CorporationFLS has an Earnings ESP of +2.90% and a Zacks Rank #2. The stock has gained 12% in a year's time.
Deere & CompanyDE has an Earnings ESP of +1.39% and a Zacks Rank #3. The company's shares have been up 14% during the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Flowserve Corporation (FLS): Free Stock Analysis Report
Tetra Tech, Inc. (TTEK): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its efforts to strengthen relationships with both large- and mid-sized U.S. customers by executing high-value sales and service model remain catalysts for the segment's performance in the quarter to be reported. In the last reported quarter, it delivered a positive earnings surprise of 15.61%. Our proven model shows that Grainger is likely to beat estimates this quarter.
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The Zacks Consensus Estimate for adjusted operating income of the segment is pegged at $341 million for the to-be-reported quarter compared to $303 million recorded in the prior-year quarter. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. In the last reported quarter, it delivered a positive earnings surprise of 15.61%.
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The combination of Grainger's Zacks Rank #1 and Earnings ESP of +0.98% makes us confident of a likely earnings beat. Other Stocks to Consider Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Tetra Tech, Inc.TTEK has an Earnings ESP of +0.96% and a Zacks Rank #1. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here.
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Conversely, stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered going into an earnings announcement. Per the Zacks Consensus Estimates, net sales in the Canada segment are likely to drop around 6% to $177 million in the quarter under review. In the last reported quarter, it delivered a positive earnings surprise of 15.61%.
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7921d70a-4240-440e-bfdb-d2c0ac88ed23
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721934.0
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2018-10-11 00:00:00 UTC
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The Internet of Things (IoT) Play That Might Surprise You
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DE
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https://www.nasdaq.com/articles/internet-things-iot-play-might-surprise-you-2018-10-11
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nan
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nan
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When most investors think of ways to play the growth in the Internet of Things (IoT), the last thing they might consider is an industry like agriculture. However, that would be mistake, because the increased use of web-enabled technology in farming is a growth driver for agricultural machinery equipment companies like Deere & Company (NYSE: DE) . In addition, for investors looking for a small-cap growth stock to take advantage of this trend, Raven Industries might fit the bill. Let's take a closer look at fascinating investment theme
How the cycle traditionally worked for Deere
In order to understand how IoT has changed the investment case for Deere, it's a good idea to look at the traditional cycle of demand for its agricultural equipment. As you can see below, Deere revenue (I've added its peer AGCO by way of comparison) tends to correlate with movements in U.S. farm cash receipts. This makes perfect sense, as growing income will encourage farmers to buy new equipment while stagnating income will induce farmers to avoid making capital investments.
DE Revenue (TTM) data by YCharts .
In turn, U.S. farm cash income is determined by a combination of income from livestock and highly variable income from key crops such as corn, wheat, cotton, and soybeans.
US Cash Receipts from Farm Marketings data by YCharts .
All told, buying stocks in the sector usually implied taking a view of where crop prices were headed -- something fiendishly difficult to predict given the uncertainty of weather patterns.
How IoT is changing things
To be fair, you are never really going to fully avoid the vagaries of crop price movements and farm income when you buy agricultural stocks, but the IoT revolution has added a new growth driver to their earnings prospects.
Indeed, Deere's recent results show how the company is benefiting from a cycle of replacement demand for equipment, which is being accompanied by the adoption of its IoT solutions. (It also helps that crop prices have stabilized and Deere is predicting U.S. farm income to be roughly flat in 2018 compared to 2017.)
In a nutshell, Deere is adding IoT sensors, onboard computers, telematics solutions, and precision hardware solutions to enable farmers to better manage their operations. Meanwhile, Raven Industries' core applied technology segment offers field computers and application controls that help farmers guide and steer equipment. Raven's recent results show high-single-digit growth in that business.
IoT can help predict when combine harvesters need servicing or maintenance, which helps to reduce downtime. Furthermore, precision agriculture means farmers can very accurately prepare land and monitor and control seeding, feeding, and harvesting, with the benefits being a reduction in input cost and an improvement in crop yield.
Deere's sales and margin receiving a boost
On Deere's third-quarter earnings call in August, there were two key takeaways for investors with regard to IoT/precision agriculture and Deere:
Adoption rates of the new technologies are very high and it's helping Deere improve overall sales growth by offering tangible benefits to farmers.
Deere has a margin expansion opportunity through selling more of its advanced technology solutions.
Discussing adoption rates of the new technologies, Chief Information Officer John May noted: "If you look over the last three years and you look at each individual region, all four regions across the globe, every year we see an increase in the overall take rate and adoption of the technology."
He also told investors that "recent precision hardware introductions demonstrated significant economic value to farming operations, and in some cases, already achieving take rates in excess of 50%." In other words, half of the customers eligible to take up certain precision hardware solutions are electing to order them.
So we know sales are receiving a benefit from new technologies, but what about margin?
Bank of America analyst Ross Gilardi asked about the matter on the earnings call. May replied, "As we think about margins, we've not dialed in exactly what this means from a margin perspective or carved that out. But we do feel like it will contribute, is and will contribute to margin growth in the future."
What it means to the investment case for Deere
All told, there's evidence that Deere's sales and margin are receiving a boost from IoT-based technologies. This is a long-term positive for the stock and investors should upgrade their expectations accordingly.
Furthermore, given that current demand is being driven by replacement and not a strong increase in crop prices or farm income, there's a possibility that, if/when market fundamentals turn for Deere, the company can generate relatively more earnings than in previous cycles.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, Raven Industries' core applied technology segment offers field computers and application controls that help farmers guide and steer equipment. Furthermore, given that current demand is being driven by replacement and not a strong increase in crop prices or farm income, there's a possibility that, if/when market fundamentals turn for Deere, the company can generate relatively more earnings than in previous cycles. When most investors think of ways to play the growth in the Internet of Things (IoT), the last thing they might consider is an industry like agriculture.
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How IoT is changing things To be fair, you are never really going to fully avoid the vagaries of crop price movements and farm income when you buy agricultural stocks, but the IoT revolution has added a new growth driver to their earnings prospects. Indeed, Deere's recent results show how the company is benefiting from a cycle of replacement demand for equipment, which is being accompanied by the adoption of its IoT solutions. Deere's sales and margin receiving a boost On Deere's third-quarter earnings call in August, there were two key takeaways for investors with regard to IoT/precision agriculture and Deere: Adoption rates of the new technologies are very high and it's helping Deere improve overall sales growth by offering tangible benefits to farmers.
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Let's take a closer look at fascinating investment theme How the cycle traditionally worked for Deere In order to understand how IoT has changed the investment case for Deere, it's a good idea to look at the traditional cycle of demand for its agricultural equipment. How IoT is changing things To be fair, you are never really going to fully avoid the vagaries of crop price movements and farm income when you buy agricultural stocks, but the IoT revolution has added a new growth driver to their earnings prospects. Deere's sales and margin receiving a boost On Deere's third-quarter earnings call in August, there were two key takeaways for investors with regard to IoT/precision agriculture and Deere: Adoption rates of the new technologies are very high and it's helping Deere improve overall sales growth by offering tangible benefits to farmers.
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How IoT is changing things To be fair, you are never really going to fully avoid the vagaries of crop price movements and farm income when you buy agricultural stocks, but the IoT revolution has added a new growth driver to their earnings prospects. Deere's sales and margin receiving a boost On Deere's third-quarter earnings call in August, there were two key takeaways for investors with regard to IoT/precision agriculture and Deere: Adoption rates of the new technologies are very high and it's helping Deere improve overall sales growth by offering tangible benefits to farmers. When most investors think of ways to play the growth in the Internet of Things (IoT), the last thing they might consider is an industry like agriculture.
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8e6b7776-0110-4212-ad7b-43839f0c10a3
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721935.0
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2018-10-05 00:00:00 UTC
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Notable Friday Option Activity: JBGS, FMC, DE
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DE
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https://www.nasdaq.com/articles/notable-friday-option-activity-jbgs-fmc-de-2018-10-05
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in JBG SMITH Properties (Symbol: JBGS), where a total volume of 7,270 contracts has been traded thus far today, a contract volume which is representative of approximately 727,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 90.7% of JBGS's average daily trading volume over the past month, of 801,485 shares. Particularly high volume was seen for the $40 strike call option expiring January 18, 2019 , with 3,625 contracts trading so far today, representing approximately 362,500 underlying shares of JBGS. Below is a chart showing JBGS's trailing twelve month trading history, with the $40 strike highlighted in orange:
FMC Corp. (Symbol: FMC) saw options trading volume of 9,409 contracts, representing approximately 940,900 underlying shares or approximately 90.6% of FMC's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $87.50 strike put option expiring October 19, 2018 , with 3,638 contracts trading so far today, representing approximately 363,800 underlying shares of FMC. Below is a chart showing FMC's trailing twelve month trading history, with the $87.50 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 17,178 contracts, representing approximately 1.7 million underlying shares or approximately 80.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $170 strike call option expiring November 16, 2018 , with 8,053 contracts trading so far today, representing approximately 805,300 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $170 strike highlighted in orange:
For the various different available expirations for JBGS options , FMC options , or DE options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $40 strike call option expiring January 18, 2019 , with 3,625 contracts trading so far today, representing approximately 362,500 underlying shares of JBGS. Especially high volume was seen for the $87.50 strike put option expiring October 19, 2018 , with 3,638 contracts trading so far today, representing approximately 363,800 underlying shares of FMC. Especially high volume was seen for the $170 strike call option expiring November 16, 2018 , with 8,053 contracts trading so far today, representing approximately 805,300 underlying shares of DE.
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Below is a chart showing JBGS's trailing twelve month trading history, with the $40 strike highlighted in orange: FMC Corp. (Symbol: FMC) saw options trading volume of 9,409 contracts, representing approximately 940,900 underlying shares or approximately 90.6% of FMC's average daily trading volume over the past month, of 1.0 million shares. Below is a chart showing FMC's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 17,178 contracts, representing approximately 1.7 million underlying shares or approximately 80.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $170 strike highlighted in orange: For the various different available expirations for JBGS options , FMC options , or DE options , visit StockOptionsChannel.com.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in JBG SMITH Properties (Symbol: JBGS), where a total volume of 7,270 contracts has been traded thus far today, a contract volume which is representative of approximately 727,000 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing JBGS's trailing twelve month trading history, with the $40 strike highlighted in orange: FMC Corp. (Symbol: FMC) saw options trading volume of 9,409 contracts, representing approximately 940,900 underlying shares or approximately 90.6% of FMC's average daily trading volume over the past month, of 1.0 million shares. Below is a chart showing FMC's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 17,178 contracts, representing approximately 1.7 million underlying shares or approximately 80.4% of DE's average daily trading volume over the past month, of 2.1 million shares.
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Below is a chart showing JBGS's trailing twelve month trading history, with the $40 strike highlighted in orange: FMC Corp. (Symbol: FMC) saw options trading volume of 9,409 contracts, representing approximately 940,900 underlying shares or approximately 90.6% of FMC's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $87.50 strike put option expiring October 19, 2018 , with 3,638 contracts trading so far today, representing approximately 363,800 underlying shares of FMC. Below is a chart showing FMC's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 17,178 contracts, representing approximately 1.7 million underlying shares or approximately 80.4% of DE's average daily trading volume over the past month, of 2.1 million shares.
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7cfe74da-ffcf-45fa-abd8-271a6da94bfa
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721936.0
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2018-10-03 00:00:00 UTC
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Buy Caterpillar (CAT) Stock As It Cuts Costs To Counter Tariffs
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DE
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https://www.nasdaq.com/articles/buy-caterpillar-cat-stock-it-cuts-costs-counter-tariffs-2018-10-03
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nan
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nan
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Shares of Caterpillar CAT jumped Wednesday to help extend its 15% month-long surge as investors see that its efforts to counter the Trump administration's tariffs on steel and aluminum seem to be working. So, let's see why Caterpillar stock looks like it might be worth buying, especially as its Q3 earnings come into view.
Recent News & Overview
Trump's tariffs on imported steel and aluminum went into effect in June and don't look like they will go away just yet despite the newly revised trade agreement between the U.S., Canada, and Mexico. These tariffs, along with the ongoing trade war between the world's two largest economies, made many nervous that Caterpillar and other giants such as Boeing BA would see their profits take a hit. But Caterpillar vowed that it would counteract the tariffs through a series of initiatives.
The construction and mining equipment giant estimated that the tariffs will lift its costs by up to $200 million between July and December. But the Illinois-based company announced that it would offset the impact through price increases, which began in July. Caterpillar has also focused on cost cutting.
A recent Reuters' story highlighted some of CAT's cost-cutting measures. The company is now able to produce more equipment at one of its North Carolina plants with 30% fewer people on the floor. Plus, Caterpillar told the publication that it has redesigned all new machines it makes to use 20% fewer parts, which lowers the firm's steel consumption. "Fewer parts numbers are a huge win," CAT executive Tony Fassino told Reuters . "It improves safety, it improves the quality, it improves the cost."
Price Movement & Valuation
Caterpillar was already moving toward more efficiency when the tariffs were rolled out. The company also raised its full-year profit outlook in Q2 based on its confidence that it could counter the tariffs.
Moving on, shares of CAT have surged recently as more investors start to see that its pullback represented a buying opportunity. Caterpillar has seen its stock price surge nearly 20% over the past three months, which outpaces its industry's roughly 12% climb and the S&P 500's 8% jump.
On top of the fact that CAT sits below its 52-week high, Caterpillar stock is currently trading at 12.3X forward 12-month Zacks Consensus EPS estimates. This represents a significant discount compared to its industry's 16X average-which includes Deere DE , Terex TEX , and Manitowoc MTW . CAT also falls below the S&P's 17.4X.
More importantly, Caterpillar has traded as high as 24.7X over the last year, with a one-year median of 15.7X. CAT is also trading near both its one-year and three-year low of 10.7X. Jumping back even further we can see that Caterpillar stock appears rather "cheap."
Outlook
Looking ahead, our current Zacks Consensus Estimate is calling for Caterpillar's Q3 revenues to surge by nearly 16% to hit $13.21 billion. The firm's full-year revenues are projected to jump by over 20% to reach $54.59 billion.
Investors might be even more pleased by CAT's earnings outlook. Caterpillar's adjusted Q3 earnings are projected to soar by 44.6% to hit $2.82 per share, while its full-year earnings are expected to expand by 69.2%.
CAT has also experienced positive earnings estimate revision activity recently to help it land a Zacks Rank #2 (Buy). Plus, Caterpillar sports "A" grades for both Value and Growth in our Style Scores system and looks like it might be worth considering based on its stellar value and growth prospects.
Caterpillar is expected to report its quarterly financial results on October 23.
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The Boeing Company (BA): Free Stock Analysis Report
Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recent News & Overview Trump's tariffs on imported steel and aluminum went into effect in June and don't look like they will go away just yet despite the newly revised trade agreement between the U.S., Canada, and Mexico. These tariffs, along with the ongoing trade war between the world's two largest economies, made many nervous that Caterpillar and other giants such as Boeing BA would see their profits take a hit. The construction and mining equipment giant estimated that the tariffs will lift its costs by up to $200 million between July and December.
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This represents a significant discount compared to its industry's 16X average-which includes Deere DE , Terex TEX , and Manitowoc MTW . Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Recent News & Overview Trump's tariffs on imported steel and aluminum went into effect in June and don't look like they will go away just yet despite the newly revised trade agreement between the U.S., Canada, and Mexico.
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Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Recent News & Overview Trump's tariffs on imported steel and aluminum went into effect in June and don't look like they will go away just yet despite the newly revised trade agreement between the U.S., Canada, and Mexico. These tariffs, along with the ongoing trade war between the world's two largest economies, made many nervous that Caterpillar and other giants such as Boeing BA would see their profits take a hit.
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Recent News & Overview Trump's tariffs on imported steel and aluminum went into effect in June and don't look like they will go away just yet despite the newly revised trade agreement between the U.S., Canada, and Mexico. These tariffs, along with the ongoing trade war between the world's two largest economies, made many nervous that Caterpillar and other giants such as Boeing BA would see their profits take a hit. The construction and mining equipment giant estimated that the tariffs will lift its costs by up to $200 million between July and December.
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530720dd-17ad-4229-bbaa-a12867e9697b
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721937.0
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2018-09-26 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for September 27, 2018
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-september-27-2018-2018-09-26
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nan
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nan
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Deere & Company ( DE ) will begin trading ex-dividend on September 27, 2018. A cash dividend payment of $0.69 per share is scheduled to be paid on November 01, 2018. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 15% increase over prior dividend payment. At the current stock price of $151.29, the dividend yield is 1.82%.
The previous trading day's last sale of DE was $151.29, representing a -13.68% decrease from the 52 week high of $175.26 and a 23.61% increase over the 52 week low of $122.39.
DE is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and ASML Holding N.V. ( ASML ). DE's current earnings per share, an indicator of a company's profitability, is $6.36. Zacks Investment Research reports DE's forecasted earnings growth in 2018 as 42.23%, compared to an industry average of 30.5%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
VanEck Vectors Natural Resources ETF ( HAP )
iShares MSCI Agriculture Producers Fund ( VEGI )
Invesco S&P 500 Equal Weight Industrials Portfolio ( RGI )
Invesco Russell Top 200 Pure Growth ETF ( PXLG ).
The top-performing ETF of this group is PXLG with an increase of 13.61% over the last 100 days. HAP has the highest percent weighting of DE at 8.24%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports DE's forecasted earnings growth in 2018 as 42.23%, compared to an industry average of 30.5%. For more information on the declaration, record and payment dates, visit the DE Dividend History page.
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The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF ( HAP ) iShares MSCI Agriculture Producers Fund ( VEGI ) Invesco S&P 500 Equal Weight Industrials Portfolio ( RGI ) Invesco Russell Top 200 Pure Growth ETF ( PXLG ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company ( DE ) will begin trading ex-dividend on September 27, 2018.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DE Dividend History page. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF ( HAP ) iShares MSCI Agriculture Producers Fund ( VEGI ) Invesco S&P 500 Equal Weight Industrials Portfolio ( RGI ) Invesco Russell Top 200 Pure Growth ETF ( PXLG ).
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This represents an 15% increase over prior dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $6.36. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF ( HAP ) iShares MSCI Agriculture Producers Fund ( VEGI ) Invesco S&P 500 Equal Weight Industrials Portfolio ( RGI ) Invesco Russell Top 200 Pure Growth ETF ( PXLG ).
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56211093-5d52-49d4-9c52-c8dd95286448
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721938.0
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2018-09-25 00:00:00 UTC
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Here's Why You Should Hold Deere Stock in Your Portfolio
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DE
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https://www.nasdaq.com/articles/heres-why-you-should-hold-deere-stock-in-your-portfolio-2018-09-25
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nan
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Deere & CompanyDE has been witnessing promising growth over the past few quarters, mainly driven by strong order activity, rising replacement demand, and its focus on acquisition and precision agriculture. However, challenges in the agriculture business and elevated expenses remain headwinds.
This Zacks Rank #3 (Hold) company has an estimated long-term earnings growth rate of 5.7%.
Below, we briefly discuss the company's potential growth drivers and possible headwinds.
Factors Favoring Deere
Price Performance
Deere's shares have outperformed the industry over the past year. The stock has gained around 23%, while the industry recorded growth of 17%.
Positive Earnings Surprise History
Deere outpaced the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 2.06%.
Underpriced
Looking at Deere's price-to-earnings ratio, shares are underpriced at the current level, which seems to be attractive for investors. The company has a trailing P/E ratio of 17.6, which is below the industry average of 18.2.
Return on Equity (ROE)
Deere's trailing 12-month ROE of 28.5% reinforces its growth potential. The company's ROE is higher than the ROE of 27.4% for the industry, highlighting the company's efficiency in using shareholders' funds.
Growth Drivers in Place
Deere estimates Agriculture and Turf equipment sales to increase about 14% in fiscal 2018, supported by robust order activity in Combine Early Order Program and order book for large tractors. Notably, industry sales for agricultural equipment in the United States and Canada are estimated to be up about 10% for the fiscal, aided by elevated demand for large equipment. Further, the company noted that agricultural equipment is being buoyed by replacement demand despite tensions over global trade and other geopolitical issues.
Deere's focus on precision agriculture will be a catalyst. The Intelligent Solutions Group (ISG) is the company's premier development facility specializing in creating technology used in maximizing crop yields and improving food production infrastructure. In collaboration with its product platforms, the ISG facility has been advancing Deere's precision agriculture strategy and leading the industry in machine optimization, job execution and mobile management for farmers. Moreover, the company has been aggressively investing in its portfolio of ISG tools, including precision hardware, telematics, digital solution and advanced customer support.
In addition to the above, Deere has effectively utilized M&A to help execute crop-care strategy, completing four acquisitions over the last three years, including Monosem, Hagie, Mazzotti, and King Agro. In September 2017, the company acquired Blue River Technology which has aided precision agriculture. Following this, it acquired the world's leading road-construction equipment maker - Wirtgen - in December. The buyout significantly enhances Deere's exposure to global transportation infrastructure. Finally, Deere signed a definitive agreement to acquire PLA in July 2018 which will assist it in providing innovative, cost-effective equipment, technology, and services to customers.
Headwinds for Deere
Deere's performance will be unfavorably impacted by challenges in the agriculture business. Results of the business will be hurt in fiscal 2018 by expectations of high global grain and oil seed stocks-to-use ratios. Further, the corn stocks-to-use ratio may decline in response to the rising global demand and drought conditions experienced during the first crop in Argentina. Deere will also bear the brunt of elevated expenses in fiscal 2018. The company believes an unfavorable product mix, higher overhead spending and increased incentive compensation will dampen margins.
Bottom Line
Investors might want to hold on to the stock, at present, as it has ample prospects of outperforming peers in the near future.
Stocks to Consider
Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Atkore International has a long-term earnings growth rate of 10%. The stock has rallied 39% in a year's time.
Donaldson has a long-term earnings growth rate of 11.5%. Its shares have gained 28%, over the past year.
Lawson Products has a long-term earnings growth rate of 17.5%. The company's shares have appreciated 24% in a year's time.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Lawson Products, Inc. (LAWS): Free Stock Analysis Report
Donaldson Company, Inc. (DCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE has been witnessing promising growth over the past few quarters, mainly driven by strong order activity, rising replacement demand, and its focus on acquisition and precision agriculture. The Intelligent Solutions Group (ISG) is the company's premier development facility specializing in creating technology used in maximizing crop yields and improving food production infrastructure. In collaboration with its product platforms, the ISG facility has been advancing Deere's precision agriculture strategy and leading the industry in machine optimization, job execution and mobile management for farmers.
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Stocks to Consider Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE has been witnessing promising growth over the past few quarters, mainly driven by strong order activity, rising replacement demand, and its focus on acquisition and precision agriculture.
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Growth Drivers in Place Deere estimates Agriculture and Turf equipment sales to increase about 14% in fiscal 2018, supported by robust order activity in Combine Early Order Program and order book for large tractors. Stocks to Consider Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Some better-ranked stocks in the same sector are Atkore International Group Inc. ATKR , Donaldson Company, Inc. DCI and Lawson Products, Inc. LAWS . Deere & CompanyDE has been witnessing promising growth over the past few quarters, mainly driven by strong order activity, rising replacement demand, and its focus on acquisition and precision agriculture. Factors Favoring Deere Price Performance Deere's shares have outperformed the industry over the past year.
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19f25c72-6d13-4fc0-abcd-ffeda9678284
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721939.0
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2018-09-24 00:00:00 UTC
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Caterpillar Stock Is in the Right Industry at the Right Time
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DE
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https://www.nasdaq.com/articles/caterpillar-stock-right-industry-right-time-2018-09-24
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On Thursday, Robert W. Baird analyst Mircea Dobre upgraded Caterpillar (NYSE: CAT ) to an "outperform," and simultaneously upped his price target on CAT stock to $191, roughly 25% above the stock's current price.
It's a reasonable call. Although the heavy equipment maker's stock has been tossed around by the tariff war, the company's sales jumped 23% year-over-year for the three months ending in August. The company's average monthly revenue growth so far in 2018 has been an impressive 28%.
A closer look at Dobre's optimism, however, bodes even better for Caterpillar stock than just the upgrade and upped price target do. Dobre is stoked about the machinery industry in general, which can play a surprisingly significant role in the bigger-picture success of CAT stock.
7 Stocks to Buy After 20% Drops
Sector Catalysts for CAT Stock
According to Baird, "The near-term picture is still robust as demand remains solid, (and) pricing is coming through to support [second-half 2019] margins with raw materials plateauing."
While Dobre concedes some of the company's markets are already at full capacity, he also believes that more than 60% of its markets are "at or below mid-cycle levels."
It's interesting to note that while Baird was suggesting CAT stock was an opportunity, the firm also upgradedManitowoc Company (NYSE: MTW ) and Sun Hydraulics (NASDAQ: SNHY ) - a couple of other machinery/industrial names, perhaps making the call as much about the industrial sector as it was about CAT stock.
That matters, perhaps more than most investors realize.
Although the estimated figures vary somewhat, it's believed that a particular stock's industry accounts for about 37% of that stock's price performance . Another 12% of a stock's performance can be chalked up to the strength or weakness of its broader sector.
In other words, picking the right sector and industry is half the battle for investors.
It's this sector-based and industry-based influence that may have held down CAT stock for the better part of this year, while other areas and the broad market were performing well. It's also this influence that has recently shoved CAT stock and its peers into a higher gear.
The graphic below is telling. The industrial sector, machinery stocks, and CAT stock in particular have all trailed the S&P 500 year-to-date. They've all closed the gap in a big way since July, establishing some momentum that's understandably starting to turn heads. In this light, Baird's target doesn't seem far-fetched at all.
Fundamental Support
Dobre was bullish enough to make bets on several names in the sector, although Robert W. Baird has hardly been the only firm to suggest that machinery stocks are attractive right now. Melius Research explained in late August that machinery stocks were valued at a "far wider than normal" discount compared to the S&P 500's valuation.
Melius Research's Rob Wertheimer specifically notes that, "Thus far, execution has been far more consistent and far better than we or the market imagined, despite the curveballs thrown in from tariffs." Wertheimer specifically mentioned Caterpillar and engine-maker Cummins (NYSE: CMI ), though it was the strong second-quarter report from Deere & Company (NYSE: DE ) that bolstered his bullishness on the group as a whole.
The optimism of analysts is not misplaced. The S&P 500 Industrial Index's earnings trend, earnings projection, and price-earnings ratio are indeed more attractive than the market is giving the group credit for.
The green arrow on the chart above marks the sector's second-quarter earnings per share; everything to the right of the arrow is an estimate. Given that the sector's Q2 bottom line was better than expected, though, it's not unreasonable to assume that analysts' so-so earnings outlook actually underestimates the level of earnings growth the S&P 500 Industrial Index's constituents will generate for the next year and a half.
Either way, Wertheimer is exactly right about the group's valuation. Thanks to unmerited weakness earlier in the year, the sector's trailing price-earnings ratio of 18.7 is well below the market average.
The Outlook for CAT Stock
Just for the record, the 12% gain CAT has generated since the end of last month has left it vulnerable to some profit-taking. Right now isn't exactly the best time to wade into a position, as a small pullback by Caterpillar stock appears likely.
A healthy pullback in Caterpillar stock would create a buying opportunity, though, for a myriad of reasons. Not the least of those reasons is that the sector and the machinery industry themselves are well-positioned for gains.
Caterpillar stock wouldn't even have to do that much of its own heavy lifting to forge its way to higher highs in the foreseeable future.
Baird's Dobre definitely has the right idea when it comes to CAT stock.
As of this writing, James Brumley held a position in Cummins. You can follow him on Twitter , at @jbrumley.
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The post Caterpillar Stock Is in the Right Industry at the Right Time appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Thursday, Robert W. Baird analyst Mircea Dobre upgraded Caterpillar (NYSE: CAT ) to an "outperform," and simultaneously upped his price target on CAT stock to $191, roughly 25% above the stock's current price. A closer look at Dobre's optimism, however, bodes even better for Caterpillar stock than just the upgrade and upped price target do. 7 Stocks to Buy After 20% Drops Sector Catalysts for CAT Stock According to Baird, "The near-term picture is still robust as demand remains solid, (and) pricing is coming through to support [second-half 2019] margins with raw materials plateauing."
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Thursday, Robert W. Baird analyst Mircea Dobre upgraded Caterpillar (NYSE: CAT ) to an "outperform," and simultaneously upped his price target on CAT stock to $191, roughly 25% above the stock's current price. It's interesting to note that while Baird was suggesting CAT stock was an opportunity, the firm also upgradedManitowoc Company (NYSE: MTW ) and Sun Hydraulics (NASDAQ: SNHY ) - a couple of other machinery/industrial names, perhaps making the call as much about the industrial sector as it was about CAT stock. A closer look at Dobre's optimism, however, bodes even better for Caterpillar stock than just the upgrade and upped price target do.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Thursday, Robert W. Baird analyst Mircea Dobre upgraded Caterpillar (NYSE: CAT ) to an "outperform," and simultaneously upped his price target on CAT stock to $191, roughly 25% above the stock's current price. It's interesting to note that while Baird was suggesting CAT stock was an opportunity, the firm also upgradedManitowoc Company (NYSE: MTW ) and Sun Hydraulics (NASDAQ: SNHY ) - a couple of other machinery/industrial names, perhaps making the call as much about the industrial sector as it was about CAT stock. A closer look at Dobre's optimism, however, bodes even better for Caterpillar stock than just the upgrade and upped price target do.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Thursday, Robert W. Baird analyst Mircea Dobre upgraded Caterpillar (NYSE: CAT ) to an "outperform," and simultaneously upped his price target on CAT stock to $191, roughly 25% above the stock's current price. Baird's Dobre definitely has the right idea when it comes to CAT stock. A closer look at Dobre's optimism, however, bodes even better for Caterpillar stock than just the upgrade and upped price target do.
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bb5d66e1-2583-49e0-9324-82ef149a41f5
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721940.0
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2018-09-19 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - DE
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DE
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-de-2018-09-19
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nan
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nan
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In trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.11, changing hands as high as $153.00 per share. Deere & Co. shares are currently trading up about 2.4% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $122.39 per share, with $175.26 as the 52 week high point - that compares with a last trade of $152.69.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.11, changing hands as high as $153.00 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $122.39 per share, with $175.26 as the 52 week high point - that compares with a last trade of $152.69. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.11, changing hands as high as $153.00 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $122.39 per share, with $175.26 as the 52 week high point - that compares with a last trade of $152.69. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.11, changing hands as high as $153.00 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $122.39 per share, with $175.26 as the 52 week high point - that compares with a last trade of $152.69. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $151.11, changing hands as high as $153.00 per share. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Co. shares are currently trading up about 2.4% on the day.
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9a6a3e7a-f40a-49f8-a49f-67efcaf8e8a0
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721941.0
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2018-09-19 00:00:00 UTC
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Noteworthy Wednesday Option Activity: SAM, FEYE, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-sam-feye-de-2018-09-19
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Boston Beer Co Inc (Symbol: SAM), where a total volume of 919 contracts has been traded thus far today, a contract volume which is representative of approximately 91,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 77.3% of SAM's average daily trading volume over the past month, of 118,830 shares. Especially high volume was seen for the $280 strike put option expiring September 21, 2018 , with 76 contracts trading so far today, representing approximately 7,600 underlying shares of SAM. Below is a chart showing SAM's trailing twelve month trading history, with the $280 strike highlighted in orange:
FireEye Inc (Symbol: FEYE) saw options trading volume of 32,693 contracts, representing approximately 3.3 million underlying shares or approximately 71.1% of FEYE's average daily trading volume over the past month, of 4.6 million shares. Particularly high volume was seen for the $16.50 strike call option expiring September 28, 2018 , with 12,856 contracts trading so far today, representing approximately 1.3 million underlying shares of FEYE. Below is a chart showing FEYE's trailing twelve month trading history, with the $16.50 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 12,079 contracts, representing approximately 1.2 million underlying shares or approximately 69% of DE's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $152.50 strike call option expiring September 21, 2018 , with 1,158 contracts trading so far today, representing approximately 115,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $152.50 strike highlighted in orange:
For the various different available expirations for SAM options , FEYE options , or DE options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $280 strike put option expiring September 21, 2018 , with 76 contracts trading so far today, representing approximately 7,600 underlying shares of SAM. Particularly high volume was seen for the $16.50 strike call option expiring September 28, 2018 , with 12,856 contracts trading so far today, representing approximately 1.3 million underlying shares of FEYE. Especially high volume was seen for the $152.50 strike call option expiring September 21, 2018 , with 1,158 contracts trading so far today, representing approximately 115,800 underlying shares of DE.
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Below is a chart showing SAM's trailing twelve month trading history, with the $280 strike highlighted in orange: FireEye Inc (Symbol: FEYE) saw options trading volume of 32,693 contracts, representing approximately 3.3 million underlying shares or approximately 71.1% of FEYE's average daily trading volume over the past month, of 4.6 million shares. Particularly high volume was seen for the $16.50 strike call option expiring September 28, 2018 , with 12,856 contracts trading so far today, representing approximately 1.3 million underlying shares of FEYE. Below is a chart showing FEYE's trailing twelve month trading history, with the $16.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 12,079 contracts, representing approximately 1.2 million underlying shares or approximately 69% of DE's average daily trading volume over the past month, of 1.8 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Boston Beer Co Inc (Symbol: SAM), where a total volume of 919 contracts has been traded thus far today, a contract volume which is representative of approximately 91,900 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing SAM's trailing twelve month trading history, with the $280 strike highlighted in orange: FireEye Inc (Symbol: FEYE) saw options trading volume of 32,693 contracts, representing approximately 3.3 million underlying shares or approximately 71.1% of FEYE's average daily trading volume over the past month, of 4.6 million shares. Below is a chart showing FEYE's trailing twelve month trading history, with the $16.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 12,079 contracts, representing approximately 1.2 million underlying shares or approximately 69% of DE's average daily trading volume over the past month, of 1.8 million shares.
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Below is a chart showing SAM's trailing twelve month trading history, with the $280 strike highlighted in orange: FireEye Inc (Symbol: FEYE) saw options trading volume of 32,693 contracts, representing approximately 3.3 million underlying shares or approximately 71.1% of FEYE's average daily trading volume over the past month, of 4.6 million shares. Particularly high volume was seen for the $16.50 strike call option expiring September 28, 2018 , with 12,856 contracts trading so far today, representing approximately 1.3 million underlying shares of FEYE. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Boston Beer Co Inc (Symbol: SAM), where a total volume of 919 contracts has been traded thus far today, a contract volume which is representative of approximately 91,900 underlying shares (given that every 1 contract represents 100 underlying shares).
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da6adf88-86c3-45c9-a403-8508c5bc44ad
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721942.0
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2018-09-16 00:00:00 UTC
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Deere (DE) Up 7.6% Since Last Earnings Report: Can It Continue?
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DE
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https://www.nasdaq.com/articles/deere-de-up-7.6-since-last-earnings-report%3A-can-it-continue-2018-09-16
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nan
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nan
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A month has gone by since the last earnings report for Deere (DE). Shares have added about 7.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Deere due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Deere Q3 Earnings Miss, Revenues Surpass Estimates
Deere reported third-quarter fiscal 2018 (ended Jul 29, 2018) adjusted earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 by a margin of 6% due to higher raw material and freight costs. Deere's shares lost around 4.5% in pre-market trading following the release.
Including tax adjustments related to the tax reform, the company posted earnings of $2.78 per share compared with the year-ago quarter's figure of $1.97 per share. Third-quarter performance benefited from favorable market conditions and positive customer response to the company's product lineup with advanced technology and product features. Further, cost management and pricing actions to counter cost pressures for raw materials and freight aided results.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $9.3 billion, surging 36% year over year. Revenues came ahead of the Zacks Consensus Estimate of $9.2 billion.
The acquisition of the Wirtgen Group in December 2017 added 17% to net sales in the fiscal third quarter. Sales were dented by an unfavorable currency-translation impact of 1%. Region wise, equipment net sales increased 29% in the United States and Canada, and 45% in the rest of the world. Total net sales (including financial services and others) came in at $10.3 billion, up 32% year over year.
Operational Update
Cost of sales in the quarter increased 36% year over year to $7.2 billion. Gross profit in the reported quarter came in at $3.2 billion, advancing 23% year over year. Selling, administrative and general expenses flared up 14% to $9139 million. Equipment operations reported operating profit of $1.087 billion for the quarter compared with $804 million in the prior-year quarter.
The Wirtgen acquisition contributed $88 million to the quarter under review. Excluding Wirtgen results, the improvement fin operating profit was driven by higher shipment volumes, lower warranty costs, and price realization, partially offset by higher production costs and research and development expenses. Total operating profit (including financial services) increased to $1.3 billion from $1.0 billion reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales were up 18% year over year to $6.3 billion, primarily driven by higher shipment volumes, price realization offset by an unfavorable currency-translation impact. Operating profit at the segment climbed 16% year over year to $806 million, driven by higher shipment volumes, lower warranty-related expenses and price realization, somewhat negated by higher production costs and research and development expenses.
Construction & Forestry sales increased twofold to $3 billion from the prior-year quarter, aided by the Wirtgen acquisition. This segment reported operating profit of $281 million, up a whopping 153% year over year. The Wirtgen acquisition contributed operating profit of $88 million for the quarter. Excluding its impact, higher shipment volumes and lower warranty expenses, partially offset by higher production costs and sales-incentive expenses led to the overall improvement.
Net revenues at Deere's Financial Services division totaled $830 million in the reported quarter, up 12% year over year. The segment's operating profit came in at $196 million, a dip of 1% year over year. Net income at the segment was $151 million, up from $131 million in the prior-year quarter.
Financial Update
Deere reported cash and cash equivalents of $3.9 billion at the end of the fiscal third quarter compared with $6.5 billion at the end of the prior-year quarter. Cash used in operations was $675 million during the nine-month period ended Jul 29, 2018, compared with cash inflow of $729 million in the comparable period last year. At the end of the reported quarter, long-term borrowing totaled $26.8 billion, up from $23.7 billion at the end of the year-ago quarter.
Looking Ahead
Deere maintained its total equipment sales growth outlook for fiscal 2018 to around 30%, year over year. The company expects sales to be up 21% in fourth-quarter fiscal 2018 compared with the year-ago period. Deere stated that the Wirtgen acquisition will contribute about 12% to net sales for both the fiscal and fourth quarter. The forecast factors is an unfavorable impact of 3% for foreign-currency translation for the fiscal fourth quarter.
For fiscal 2018, Deere anticipates net sales to increase about 26% year over year and projects adjusted net income of about $3.1 billion, which excludes the provisional income-tax adjustments associated with tax reform.
Growth in global agricultural and construction equipment markets will drive Deere. The company noted that agricultural equipment is being buoyed by replacement demand despite tensions over global trade and other geopolitical issues.
Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 15% in fiscal 2018. Industry sales for agricultural equipment in the United States and Canada are estimated to be up about 10% for the fiscal, aided by elevated demand for large equipment.
In the EU28 region, sales are projected to be up about 5-10% backed by improving conditions in the dairy and livestock sectors as well as and positive arable-farming conditions in certain key markets. In South America, industry sales of tractors and combines are estimated to be flat to up 5%, aided by strength in Brazil. Sales in Asian is expected to remain flat from the year-ago levels. Industry sales of turf and utility equipment in the United States and Canada are expected to be flat to up 5% for the fiscal.
The company projects global sales for Construction & Forestry equipment to soar 81% for fiscal 2018. The Wirtgen acquisition is likely to add about 55% to the sales for the segment. The outlook is based on global economic growth, higher housing starts in the United States, and an improved oil and gas sector. In forestry, global industry sales are projected to be up about 10%.
The outlook for adjusted net income from Financial Services has been set at $583 million for fiscal 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Deere has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Deere has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. The company noted that agricultural equipment is being buoyed by replacement demand despite tensions over global trade and other geopolitical issues. A month has gone by since the last earnings report for Deere (DE).
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Deere Q3 Earnings Miss, Revenues Surpass Estimates Deere reported third-quarter fiscal 2018 (ended Jul 29, 2018) adjusted earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 by a margin of 6% due to higher raw material and freight costs. Excluding Wirtgen results, the improvement fin operating profit was driven by higher shipment volumes, lower warranty costs, and price realization, partially offset by higher production costs and research and development expenses. A month has gone by since the last earnings report for Deere (DE).
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Deere Q3 Earnings Miss, Revenues Surpass Estimates Deere reported third-quarter fiscal 2018 (ended Jul 29, 2018) adjusted earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 by a margin of 6% due to higher raw material and freight costs. Financial Update Deere reported cash and cash equivalents of $3.9 billion at the end of the fiscal third quarter compared with $6.5 billion at the end of the prior-year quarter. For fiscal 2018, Deere anticipates net sales to increase about 26% year over year and projects adjusted net income of about $3.1 billion, which excludes the provisional income-tax adjustments associated with tax reform.
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A month has gone by since the last earnings report for Deere (DE). Net revenues at Deere's Financial Services division totaled $830 million in the reported quarter, up 12% year over year. Shares have added about 7.6% in that time frame, outperforming the S&P 500.
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b46df851-303b-4764-9fa1-6704d7678ce4
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721943.0
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2018-09-13 00:00:00 UTC
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Trade-Sensitive Sector ETFs & Stocks to Watch on Talk Hopes
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DE
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https://www.nasdaq.com/articles/trade-sensitive-sector-etfs-stocks-watch-talk-hopes-2018-09-13
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nan
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nan
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Concerns over Trump's protectionist trade stance have been playing foul in the stock market. In fact, the escalation of the President's tariff threat on additional Chinese goods led to a tumultuous Wall Street ride last week. However, the negative sentiments seem to be reversing, given the hopes of fresh talks between the United States and China (read: 5 Inverse Leveraged ETFs Off to a Strong Start in September ).
China has welcomed Trump's invitation to resume trade talks in order to avert a full-blown trade war. The two countries have already placed new taxes on $50 billion in imports on each other's goods. Washington is preparing to impose 25% duty on $200 billion of Chinese goods, targeting a broad array of Internet technology products and consumer goods from handbags to bicycles to furniture. Further, Trump also threatened to implement tariffs on additional $267 billion of goods on a short notice.
China has vowed to retaliate and put off accepting license applications from American companies in financial services and other industries hoping to operate in the country. The country is also seeking permission from the World Trade Organization (WTO) to impose $7 billion a year in sanctions on the United States in retaliation to Washington's non-compliance with a recent ruling over U.S. dumping duties.
Given this, the news of fresh trade talks has instilled optimism into the stock market. This coupled with booming economy and strong earnings will help stocks to move higher. The U.S. economy is witnessing the fastest pace of growth in nearly four years with a nearly two-decade low unemployment rate of 3.9% and 18-year high consumer confidence. Historic tax cuts, higher government spending and deregulation are fueling growth.
Additionally, the Fed is on track for gradual rate hikes with the third increase of this year expected as soon as this month. A rising rate scenario also signals a strengthening economy, which will spur growth in the stock market (read: September Rate Hike Odds Rise: Top Sector ETF & Stock Picks ).
While most corners of the market are set to surge, the sectors at risk due to China trade will likely benefit the most. The U.S. information technology, materials, and industrials sectors have relatively high exposure to China's economy with 14.2%, 7.1%, and 5.6%, respectively, and are poised to perform well in renewed trade talks. In particular, chip stocks dominate the list of tech sector players with large sales exposure to China.
Below, we have highlighted a few ETFs and stocks from these sectors that are expected to outperform at least in the near term following fresh U.S.-China trade talks:
Technology
VanEck Vectors Semiconductor ETF SMH : This fund provides exposure to 25 securities by tracking the MVIS US Listed Semiconductor 25 Index. It has higher concentration on the top two firms with 9% of assets while others hold no more than 6.1% share. The product has managed assets worth $973.5 million and charges 35 bps in annual fees and expenses. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Semiconductor ETFs in Trouble? ).
Qorvo Inc. QRVO : This is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defense applications. It has 75% exposure to China sales. The stock has seen positive earnings estimate revision of 73 cents over the past 90 days for the fiscal (ending March 2019) and has an estimated earnings growth rate of 29.50%. Qorvo has a Zacks Rank #2 and a VGM Score of B.
Materials
Invesco Global Agriculture ETF PAGG : This product offers exposure to the largest, most liquid, globally traded companies involved in agriculture and farming-related activities. It follows the NASDAQ OMX Global Agriculture Index, holding 50 stocks in its basket. None of the securities holds more than 9.25% share. The fund has accumulated $20.2 million in its asset base and charges 77 bps in annual fees.
Deere & Company DE : This is an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains used in heavy equipment, and lawn care equipment. It has seen negative earnings estimate revision of 16 cents for the fiscal (ending October 2018) over the past 90 days but is expected to generate growth of 42.22%. Deere is at the most disadvantageous position amid the tit-for-tat tariff threats on agricultural products as it would reduce demand for the related machines. The stock has a Zacks Rank #3 (Hold).
Industrials
Industrial Select Sector SPDR XLI : This is the most popular ETF in the industrial space with AUM of $13.3 billion. The fund follows the Industrial Select Sector Index, holding 70 stocks in its basket with each accounting for less than 8% of the assets. More than one-fourth of the assets is allocated to aerospace & defense while industrial conglomerates, machinery, and road & rail make up for a double-digit share each. This ETF charges 13 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Industrial Output Slows Down in July: 4 Solid ETFs & Stocks ).
The Boeing Company BA : This is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Boeing's sales in China accounted for 15% of its total revenues in 2017. The stock has seen negative earnings estimate revision of 6 cents for this year over the past 90 days but has an expected growth rate of 21.51%. Being carries a Zacks Rank #3 and has a VGM Score of A.
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Qorvo, Inc. (QRVO): Free Stock Analysis Report
The Boeing Company (BA): Free Stock Analysis Report
VANECK-SEMICON (SMH): ETF Research Reports
SPDR-INDU SELS (XLI): ETF Research Reports
Deere & Company (DE): Free Stock Analysis Report
PWRSH-GLBL AGRI (PAGG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The country is also seeking permission from the World Trade Organization (WTO) to impose $7 billion a year in sanctions on the United States in retaliation to Washington's non-compliance with a recent ruling over U.S. dumping duties. The U.S. information technology, materials, and industrials sectors have relatively high exposure to China's economy with 14.2%, 7.1%, and 5.6%, respectively, and are poised to perform well in renewed trade talks. Concerns over Trump's protectionist trade stance have been playing foul in the stock market.
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Below, we have highlighted a few ETFs and stocks from these sectors that are expected to outperform at least in the near term following fresh U.S.-China trade talks: Technology VanEck Vectors Semiconductor ETF SMH : This fund provides exposure to 25 securities by tracking the MVIS US Listed Semiconductor 25 Index. Click to get this free report Qorvo, Inc. (QRVO): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report VANECK-SEMICON (SMH): ETF Research Reports SPDR-INDU SELS (XLI): ETF Research Reports Deere & Company (DE): Free Stock Analysis Report PWRSH-GLBL AGRI (PAGG): ETF Research Reports To read this article on Zacks.com click here. Concerns over Trump's protectionist trade stance have been playing foul in the stock market.
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Below, we have highlighted a few ETFs and stocks from these sectors that are expected to outperform at least in the near term following fresh U.S.-China trade talks: Technology VanEck Vectors Semiconductor ETF SMH : This fund provides exposure to 25 securities by tracking the MVIS US Listed Semiconductor 25 Index. Click to get this free report Qorvo, Inc. (QRVO): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report VANECK-SEMICON (SMH): ETF Research Reports SPDR-INDU SELS (XLI): ETF Research Reports Deere & Company (DE): Free Stock Analysis Report PWRSH-GLBL AGRI (PAGG): ETF Research Reports To read this article on Zacks.com click here. Concerns over Trump's protectionist trade stance have been playing foul in the stock market.
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The U.S. information technology, materials, and industrials sectors have relatively high exposure to China's economy with 14.2%, 7.1%, and 5.6%, respectively, and are poised to perform well in renewed trade talks. The fund follows the Industrial Select Sector Index, holding 70 stocks in its basket with each accounting for less than 8% of the assets. Concerns over Trump's protectionist trade stance have been playing foul in the stock market.
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993f3181-b92e-4a64-a5a5-b4d3b0c21d06
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721944.0
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2018-09-12 00:00:00 UTC
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Notable Wednesday Option Activity: DE, XOM, XL
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DE
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-de-xom-xl-2018-09-12
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 10,677 contracts have traded so far, representing approximately 1.1 million underlying shares. That amounts to about 45.8% of DE's average daily trading volume over the past month of 2.3 million shares. Particularly high volume was seen for the $162.50 strike call option expiring September 21, 2018 , with 5,201 contracts trading so far today, representing approximately 520,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $162.50 strike highlighted in orange:
Exxon Mobil Corp (Symbol: XOM) options are showing a volume of 46,171 contracts thus far today. That number of contracts represents approximately 4.6 million underlying shares, working out to a sizeable 45.4% of XOM's average daily trading volume over the past month, of 10.2 million shares. Especially high volume was seen for the $87.50 strike call option expiring November 16, 2018 , with 2,614 contracts trading so far today, representing approximately 261,400 underlying shares of XOM. Below is a chart showing XOM's trailing twelve month trading history, with the $87.50 strike highlighted in orange:
And XL Group Ltd (Symbol: XL) saw options trading volume of 8,555 contracts, representing approximately 855,500 underlying shares or approximately 42.2% of XL's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $55 strike put option expiring January 17, 2020 , with 4,207 contracts trading so far today, representing approximately 420,700 underlying shares of XL. Below is a chart showing XL's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for DE options , XOM options , or XL options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $162.50 strike call option expiring September 21, 2018 , with 5,201 contracts trading so far today, representing approximately 520,100 underlying shares of DE. Especially high volume was seen for the $87.50 strike call option expiring November 16, 2018 , with 2,614 contracts trading so far today, representing approximately 261,400 underlying shares of XOM. Especially high volume was seen for the $55 strike put option expiring January 17, 2020 , with 4,207 contracts trading so far today, representing approximately 420,700 underlying shares of XL.
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Below is a chart showing DE's trailing twelve month trading history, with the $162.50 strike highlighted in orange: Exxon Mobil Corp (Symbol: XOM) options are showing a volume of 46,171 contracts thus far today. Below is a chart showing XOM's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And XL Group Ltd (Symbol: XL) saw options trading volume of 8,555 contracts, representing approximately 855,500 underlying shares or approximately 42.2% of XL's average daily trading volume over the past month, of 2.0 million shares. Below is a chart showing XL's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for DE options , XOM options , or XL options , visit StockOptionsChannel.com.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 10,677 contracts have traded so far, representing approximately 1.1 million underlying shares. Below is a chart showing XOM's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And XL Group Ltd (Symbol: XL) saw options trading volume of 8,555 contracts, representing approximately 855,500 underlying shares or approximately 42.2% of XL's average daily trading volume over the past month, of 2.0 million shares. Below is a chart showing XL's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for DE options , XOM options , or XL options , visit StockOptionsChannel.com.
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Especially high volume was seen for the $87.50 strike call option expiring November 16, 2018 , with 2,614 contracts trading so far today, representing approximately 261,400 underlying shares of XOM. Below is a chart showing XOM's trailing twelve month trading history, with the $87.50 strike highlighted in orange: And XL Group Ltd (Symbol: XL) saw options trading volume of 8,555 contracts, representing approximately 855,500 underlying shares or approximately 42.2% of XL's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $55 strike put option expiring January 17, 2020 , with 4,207 contracts trading so far today, representing approximately 420,700 underlying shares of XL.
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43d1bed3-53c9-4872-a050-8269c7aa2463
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721945.0
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2018-09-06 00:00:00 UTC
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Peek Under The Hood: EPS Has 10% Upside
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DE
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https://www.nasdaq.com/articles/peek-under-hood-eps-has-10-upside-2018-09-06
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree U.S. Earnings 500 Fund ETF (Symbol: EPS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $35.84 per unit.
With EPS trading at a recent price near $32.70 per unit, that means that analysts see 9.59% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of EPS's underlying holdings with notable upside to their analyst target prices are Deere & Co. (Symbol: DE), Red Hat Inc (Symbol: RHT), and Liberty Media Corp - Common Series C SiriusXM Group (Symbol: LSXMK). Although DE has traded at a recent price of $144.88/share, the average analyst target is 19.12% higher at $172.58/share. Similarly, RHT has 14.23% upside from the recent share price of $144.28 if the average analyst target price of $164.81/share is reached, and analysts on average are expecting LSXMK to reach a target price of $52.50/share, which is 13.44% above the recent price of $46.28. Below is a twelve month price history chart comparing the stock performance of DE, RHT, and LSXMK:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although DE has traded at a recent price of $144.88/share, the average analyst target is 19.12% higher at $172.58/share. Below is a twelve month price history chart comparing the stock performance of DE, RHT, and LSXMK: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Three of EPS's underlying holdings with notable upside to their analyst target prices are Deere & Co. (Symbol: DE), Red Hat Inc (Symbol: RHT), and Liberty Media Corp - Common Series C SiriusXM Group (Symbol: LSXMK). Similarly, RHT has 14.23% upside from the recent share price of $144.28 if the average analyst target price of $164.81/share is reached, and analysts on average are expecting LSXMK to reach a target price of $52.50/share, which is 13.44% above the recent price of $46.28. 10 ETFs With Most Upside To Analyst Targets » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, RHT has 14.23% upside from the recent share price of $144.28 if the average analyst target price of $164.81/share is reached, and analysts on average are expecting LSXMK to reach a target price of $52.50/share, which is 13.44% above the recent price of $46.28. Below is a twelve month price history chart comparing the stock performance of DE, RHT, and LSXMK: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With EPS trading at a recent price near $32.70 per unit, that means that analysts see 9.59% upside for this ETF looking through to the average analyst targets of the underlying holdings. Below is a twelve month price history chart comparing the stock performance of DE, RHT, and LSXMK: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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07d1e0eb-93b7-4403-b8b4-1c562177bd03
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721946.0
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2018-09-06 00:00:00 UTC
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Trade of the Day: Deere Stock Looks Ready to Truck Higher
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DE
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https://www.nasdaq.com/articles/trade-day-deere-stock-looks-ready-truck-higher-2018-09-06
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Industrial stocks as a sector of the S&P 500 have had a tough going year-to-date, yet the price action over the past month or is beginning to show more constructive signs. Many of the large names in the sector such as Deere (NYSE: DE ) look similar on the charts as one would expect. DE stock has given the bulls four bullish reversals since late April, and it increasingly looks likely a push higher is in the cards for this name.
This is a good a spot as any for me to again reiterate the importance of recognizing that stocks as an asset class are highly correlated. This holds particularly true in sectors and industry groups of stocks, where a bullish or bearish trend in the sector at any given point likely affects a good majority of the stocks in the group.
DE Stock Charts
Click to Enlarge
Moving averages legend: red - 200 week, blue - 100 week, yellow - 50 week
Case in point with industrial stocks, which as a sector are up by around 2.5% for 2018 so far and thus notably lagging the S&p 500. After a clear and important breakout in late 2016, industrials were in favor throughout 2017 and rallied strongly into January 2018. Since then, however, it has largely been a story of consolidation. This consolidation phase at the thus-far lows in early May was about 13% deep. As a result of the sideways march the weekly MACD momentum oscillator at the bottom of the chart is now in oversold territory for the fist time since the fall of 2015.
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While this alone does not make industrial stocks a buy here, all else being equal, this is constructive signal to watch for buy signals.
Note that my above discussion was on industrial stocks as a group but it can also be applied to shares of Deere. The only major difference is that DE stock for the year is lower by about 7% versus the industrial sector being higher by 2.5%.
Click to Enlarge
Moving averages legend: red - 200 day, blue - 100 day, yellow - 50 day
On the daily chart, I marked three bullish reversals that DE stock has had since May. Each of them occurred around the $132-$133 area. The bullish reversal from Aug. 17 was followed yesterday by another bullish outside day.
While this one still needs follow-through buying for another day to confirm the strength, active investors and traders with less risk aversion could consider buying the stock here around the $145 area with next upside targets around $150 and $155. Any strong one day bearish reversal is a stop loss signal.
Access Serge's Free SSO Strategy eBook HERE - find high-probability trades like a Wall Street professional.
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The post Trade of the Day: Deere Stock Looks Ready to Truck Higher appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE stock has given the bulls four bullish reversals since late April, and it increasingly looks likely a push higher is in the cards for this name. As a result of the sideways march the weekly MACD momentum oscillator at the bottom of the chart is now in oversold territory for the fist time since the fall of 2015. Access Serge's Free SSO Strategy eBook HERE - find high-probability trades like a Wall Street professional.
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DE Stock Charts Click to Enlarge Moving averages legend: red - 200 week, blue - 100 week, yellow - 50 week Case in point with industrial stocks, which as a sector are up by around 2.5% for 2018 so far and thus notably lagging the S&p 500. Click to Enlarge Moving averages legend: red - 200 day, blue - 100 day, yellow - 50 day On the daily chart, I marked three bullish reversals that DE stock has had since May. Many of the large names in the sector such as Deere (NYSE: DE ) look similar on the charts as one would expect.
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DE Stock Charts Click to Enlarge Moving averages legend: red - 200 week, blue - 100 week, yellow - 50 week Case in point with industrial stocks, which as a sector are up by around 2.5% for 2018 so far and thus notably lagging the S&p 500. More From InvestorPlace 10 Oil Stocks That Are Worth a Second Look 5 Utility Stocks to Buy for an Extra Durable Portfolio 3 Upcoming IPOs to Watch 5 Hot Stocks to Buy for the Longest Bull Run Ever Compare Brokers The post Trade of the Day: Deere Stock Looks Ready to Truck Higher appeared first on InvestorPlace . Many of the large names in the sector such as Deere (NYSE: DE ) look similar on the charts as one would expect.
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More From InvestorPlace 10 Oil Stocks That Are Worth a Second Look 5 Utility Stocks to Buy for an Extra Durable Portfolio 3 Upcoming IPOs to Watch 5 Hot Stocks to Buy for the Longest Bull Run Ever Compare Brokers The post Trade of the Day: Deere Stock Looks Ready to Truck Higher appeared first on InvestorPlace . Many of the large names in the sector such as Deere (NYSE: DE ) look similar on the charts as one would expect. DE stock has given the bulls four bullish reversals since late April, and it increasingly looks likely a push higher is in the cards for this name.
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77239de9-b077-4b03-bf8a-b9c7184105de
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721947.0
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2018-09-05 00:00:00 UTC
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How To YieldBoost DE From 1.9% To 4.7% Using Options
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DE
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https://www.nasdaq.com/articles/how-yieldboost-de-19-47-using-options-2018-09-05
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nan
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nan
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Shareholders of Deere & Co. (Symbol: DE) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2020 covered call at the $185 strike and collect the premium based on the $5.40 bid, which annualizes to an additional 2.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.7% annualized rate in the scenario where the stock is not called away. Any upside above $185 would be lost if the stock rises there and is called away, but DE shares would have to advance 29.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 33.2% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Deere & Co., looking at the dividend history chart for DE below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.9% annualized dividend yield.
Below is a chart showing DE's trailing twelve month trading history, with the $185 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2020 covered call at the $185 strike gives good reward for the risk of having given away the upside beyond $185. ( Do most options expire worthless? This and six other common options myths debunked ). We calculate the trailing twelve month volatility for Deere & Co. (considering the last 252 trading day closing values as well as today's price of $143.45) to be 26%. For other call options contract ideas at the various different available expirations, visit the DE Stock Options page of StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. Below is a chart showing DE's trailing twelve month trading history, with the $185 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2020 covered call at the $185 strike gives good reward for the risk of having given away the upside beyond $185. We calculate the trailing twelve month volatility for Deere & Co. (considering the last 252 trading day closing values as well as today's price of $143.45) to be 26%.
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Shareholders of Deere & Co. (Symbol: DE) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2020 covered call at the $185 strike and collect the premium based on the $5.40 bid, which annualizes to an additional 2.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.7% annualized rate in the scenario where the stock is not called away. Any upside above $185 would be lost if the stock rises there and is called away, but DE shares would have to advance 29.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 33.2% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing DE's trailing twelve month trading history, with the $185 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2020 covered call at the $185 strike gives good reward for the risk of having given away the upside beyond $185.
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Shareholders of Deere & Co. (Symbol: DE) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2020 covered call at the $185 strike and collect the premium based on the $5.40 bid, which annualizes to an additional 2.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.7% annualized rate in the scenario where the stock is not called away. Any upside above $185 would be lost if the stock rises there and is called away, but DE shares would have to advance 29.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 33.2% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing DE's trailing twelve month trading history, with the $185 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2020 covered call at the $185 strike gives good reward for the risk of having given away the upside beyond $185.
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Shareholders of Deere & Co. (Symbol: DE) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2020 covered call at the $185 strike and collect the premium based on the $5.40 bid, which annualizes to an additional 2.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.7% annualized rate in the scenario where the stock is not called away. Below is a chart showing DE's trailing twelve month trading history, with the $185 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2020 covered call at the $185 strike gives good reward for the risk of having given away the upside beyond $185. For other call options contract ideas at the various different available expirations, visit the DE Stock Options page of StockOptionsChannel.com.
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58c45b4f-520f-464f-95be-1e6e9d33bbd4
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721948.0
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2018-09-05 00:00:00 UTC
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Why Tractor Supply Surged 13% in August
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DE
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https://www.nasdaq.com/articles/why-tractor-supply-surged-13-august-2018-09-05
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nan
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nan
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What happened
Shares of Tractor Supply (NASDAQ: TSCO) rose 13.1% in August, according to data from S&P Global Market Intelligence . The catalyst for the move appears to be a gradual appreciation of a good set of second-quarter earnings released at the end of July.
Management pleased investors by raising its forecast for full-year comparable-store sales growth -- a key metric for retail companies -- to between 3%-3.5% from a previous range of 2%-3.5%. In addition, full-year diluted earnings per share is expected to be between $4.10-$4.20, up from a prior forecast of $3.95-$4.15.
The upgrade to full-year forecasts is built on a very good second quarter from which Tractor Supply managed to grow comparable-store sales by 5.6%, largely due to an impressive 3.7% rise in ticket prices. COO Steve Barbarick noted that the "strong average ticket growth of 3.7% was positively impacted by product mix, mainly from growth in our big-ticket items as well as slight commodity inflation."
Tractor Supply claims to be the "largest rural lifestyle retailer in the United States" and thus is largely dependent on spending from farmers and ranchers, and it's a good sign for the industry if its customers are willing to spend more on big-ticket items like mowers.
So what
The strength in Tractor Supply's big-ticket sales was somewhat replicated in Deere & Company 's (NYSE: DE) third-quarter earnings released in the middle of August -- another possible catalyst for Tractor Supply's positive stock performance. In a nutshell, Deere is seeing good demand from the replacement equipment market and strong take-up of its advanced technological solutions.
It's another good sign of farmers' willingness to spend, and it comes despite Deere and others forecasting U.S. total farm cash receipts to be flat compared to 2017. Of course, if farmers are feeling positive enough about the future to buy Deere's equipment, it's likely that they will be buying supplies from a retailer like Tractor Supply.
Now what
The company is coming up against some difficult compares in the second half -- largely due to strong demand in the third quarter of last year caused by hurricane damage. As a result, comparable-store sales growth is expected to slow from the 4.7% rate in the first half -- recall that the full-year forecast is for growth of 3%-3.5%. It's something for investors to look out for in future quarters.
However, it's far harder to anticipate what the likely impact of tariffs will be on the farm incomes and the community at large. Moreover, weather and farming commodity price movements can also have an impact -- both are hard-to-predict variables.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Tractor Supply. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The upgrade to full-year forecasts is built on a very good second quarter from which Tractor Supply managed to grow comparable-store sales by 5.6%, largely due to an impressive 3.7% rise in ticket prices. It's another good sign of farmers' willingness to spend, and it comes despite Deere and others forecasting U.S. total farm cash receipts to be flat compared to 2017. Tractor Supply claims to be the "largest rural lifestyle retailer in the United States" and thus is largely dependent on spending from farmers and ranchers, and it's a good sign for the industry if its customers are willing to spend more on big-ticket items like mowers.
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The upgrade to full-year forecasts is built on a very good second quarter from which Tractor Supply managed to grow comparable-store sales by 5.6%, largely due to an impressive 3.7% rise in ticket prices. So what The strength in Tractor Supply's big-ticket sales was somewhat replicated in Deere & Company 's (NYSE: DE) third-quarter earnings released in the middle of August -- another possible catalyst for Tractor Supply's positive stock performance. Tractor Supply claims to be the "largest rural lifestyle retailer in the United States" and thus is largely dependent on spending from farmers and ranchers, and it's a good sign for the industry if its customers are willing to spend more on big-ticket items like mowers.
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The upgrade to full-year forecasts is built on a very good second quarter from which Tractor Supply managed to grow comparable-store sales by 5.6%, largely due to an impressive 3.7% rise in ticket prices. So what The strength in Tractor Supply's big-ticket sales was somewhat replicated in Deere & Company 's (NYSE: DE) third-quarter earnings released in the middle of August -- another possible catalyst for Tractor Supply's positive stock performance. Of course, if farmers are feeling positive enough about the future to buy Deere's equipment, it's likely that they will be buying supplies from a retailer like Tractor Supply.
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So what The strength in Tractor Supply's big-ticket sales was somewhat replicated in Deere & Company 's (NYSE: DE) third-quarter earnings released in the middle of August -- another possible catalyst for Tractor Supply's positive stock performance. Of course, if farmers are feeling positive enough about the future to buy Deere's equipment, it's likely that they will be buying supplies from a retailer like Tractor Supply. The upgrade to full-year forecasts is built on a very good second quarter from which Tractor Supply managed to grow comparable-store sales by 5.6%, largely due to an impressive 3.7% rise in ticket prices.
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21aa6c10-8e22-4653-a6b3-44fa4bbf2e79
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721949.0
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2018-08-31 00:00:00 UTC
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Daily Dividend Report: TD,XEC,SRC,DE,PXD
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DE
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https://www.nasdaq.com/articles/daily-dividend-report-tdxecsrcdepxd-2018-08-31
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nan
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nan
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The Toronto-Dominion Bank today announced that a dividend in an amount of sixty-seven cents (67 cents) per fully paid common share in the capital stock of the Bank has been declared for the quarter ending October 31, 2018, payable on and after October 31, 2018, to shareholders of record at the close of business on October 10, 2018.
Cimarex Energy announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.18 per share. The dividend is payable on November 30, 2018, to stockholders of record on November 15, 2018. Chairman and CEO Tom Jorden said, "We are pleased to announce this 12.5 percent increase in our dividend returning Cimarex to a pattern of growing our annual cash return to shareholders."
Spirit Realty Capital, a net-lease real estate investment trust (REIT) that invests in single-tenant, operationally essential real estate, today announced that its Board of Directors has declared a quarterly cash dividend of $0.125 per common share, representing an annualized rate of $0.50 per common share. Stockholders of record as of September 28, 2018 will receive the cash dividend on October 15, 2018.
The Deere & Company Board of Directors declared a regular quarterly dividend of $.69 per share on common stock, payable November 1, 2018, to stockholders of record on September 28, 2018.
Pioneer Natural Resources announced today that its board of directors declared a cash dividend of $0.16 per share on Pioneer's outstanding common stock. The dividend is payable October 12, 2018, to stockholders of record at the close of business on September 28, 2018.
VIDEO: Daily Dividend Report: TD,XEC,SRC,DE,PXD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cimarex Energy announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.18 per share. Spirit Realty Capital, a net-lease real estate investment trust (REIT) that invests in single-tenant, operationally essential real estate, today announced that its Board of Directors has declared a quarterly cash dividend of $0.125 per common share, representing an annualized rate of $0.50 per common share. The Deere & Company Board of Directors declared a regular quarterly dividend of $.69 per share on common stock, payable November 1, 2018, to stockholders of record on September 28, 2018.
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The Toronto-Dominion Bank today announced that a dividend in an amount of sixty-seven cents (67 cents) per fully paid common share in the capital stock of the Bank has been declared for the quarter ending October 31, 2018, payable on and after October 31, 2018, to shareholders of record at the close of business on October 10, 2018. Spirit Realty Capital, a net-lease real estate investment trust (REIT) that invests in single-tenant, operationally essential real estate, today announced that its Board of Directors has declared a quarterly cash dividend of $0.125 per common share, representing an annualized rate of $0.50 per common share. The Deere & Company Board of Directors declared a regular quarterly dividend of $.69 per share on common stock, payable November 1, 2018, to stockholders of record on September 28, 2018.
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The Toronto-Dominion Bank today announced that a dividend in an amount of sixty-seven cents (67 cents) per fully paid common share in the capital stock of the Bank has been declared for the quarter ending October 31, 2018, payable on and after October 31, 2018, to shareholders of record at the close of business on October 10, 2018. Spirit Realty Capital, a net-lease real estate investment trust (REIT) that invests in single-tenant, operationally essential real estate, today announced that its Board of Directors has declared a quarterly cash dividend of $0.125 per common share, representing an annualized rate of $0.50 per common share. The Deere & Company Board of Directors declared a regular quarterly dividend of $.69 per share on common stock, payable November 1, 2018, to stockholders of record on September 28, 2018.
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Cimarex Energy announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.18 per share. The Deere & Company Board of Directors declared a regular quarterly dividend of $.69 per share on common stock, payable November 1, 2018, to stockholders of record on September 28, 2018. VIDEO: Daily Dividend Report: TD,XEC,SRC,DE,PXD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7e044de6-4c21-4ba2-aea3-4a4e2e06957d
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721950.0
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2018-08-31 00:00:00 UTC
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Lam Research a Top Socially Responsible Dividend Stock With 2.5% Yield (LRCX)
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DE
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https://www.nasdaq.com/articles/lam-research-top-socially-responsible-dividend-stock-25-yield-lrcx-2018-08-31
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nan
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nan
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Lam Research Corp (Symbol: LRCX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society - for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel , Lam Research Corp is a member of the iShares USA ESG Select ETF ( SUSA ), making up 0.24% of the underlying holdings of the fund, which owns $2,893,027 worth of LRCX shares.
The annualized dividend paid by Lam Research Corp is $4.4/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 09/11/2018. Below is a long-term dividend history chart for LRCX, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
LRCX operates in the Industrial Machinery & Equipment sector, among companies like Deere & Co. ( DE ), and Illinois Tool Works, Inc. ( ITW ).
Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society - for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol. Below is a long-term dividend history chart for LRCX, which the DividendRank report stressed as being of key importance. LRCX operates in the Industrial Machinery & Equipment sector, among companies like Deere & Co. ( DE ), and Illinois Tool Works, Inc. ( ITW ).
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Lam Research Corp (Symbol: LRCX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel , Lam Research Corp is a member of the iShares USA ESG Select ETF ( SUSA ), making up 0.24% of the underlying holdings of the fund, which owns $2,893,027 worth of LRCX shares. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lam Research Corp (Symbol: LRCX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. The annualized dividend paid by Lam Research Corp is $4.4/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 09/11/2018. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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9f1b8e43-0d3f-43ed-9eef-f21a7996839d
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721951.0
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2018-08-29 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Oracle, Intuit, Regeneron, Macy's and Deere
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-oracle-intuit-regeneron-macys-and-deere-2018-08-29
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For Immediate Release
Chicago, IL -August 29, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: OracleORCL , IntuitINTU , Regeneron PharmaceuticalsREGN , Macy'sM and DeereDE .
Here are highlights from Tuesday's Analyst Blog:
Top Stock Reports for Oracle, Inuit and Regeneron
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Oracle, Intuit and Regeneron Pharmaceuticals. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Oracle 's shares have underperformed the Zacks Computer Software industry so far this year, gaining +4.4% vs. +24.7%. However, Oracle is one of the largest enterprise-grade database, middleware and application software providers.
The company is benefiting from strong adoption of its cloud-based solutions. The Zacks analyst believes that the company's growing cloud market share will continue to drive top-line growth in the long haul. The analyst notes that partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele.
Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS. Nonetheless, stiff competition in the cloud is expected to hurt margins and will make revenue growth difficult.
Notably, Oracle has undergone structural changes. It no longer intends to break out its cloud revenues and does not provide any guidance on SaaS, Cloud PaaS and IaaS. This move is likely to enhance investor concern about the company's outlook.
Buy-rated Intuit 's shares have outperformed the Zacks Computer Software industry over the last year, increasing +53.6% vs. a gain of +37.8%. Intuit's fiscal Q4 results were driven by impressive growth across its Small Business and Self-Employed, and Consumer Tax segments.
Intuit is benefiting from frequent product refreshes, which help it to gain customers. It witnessed solid growth in QuickBooks Online subscriber base. TurboTax Live offering also is likely to be a tailwind to the Consumer tax business.
Moreover, the company's strategy of shifting its business to cloud-based subscription model will help generate more stable revenues over the long run. However, high costs and expenses remain a major concern.
Competition from companies like Microsoft also increases pricing pressure. Again, due to the business being seasonal, Intuit is exposed to significant operational risks.
Buy-rated Regeneron 's shares have outperformed the Zacks Biomedical and Genetics industry year-to-date, gaining +3.3% vs. a decline of -4%. Regeneron's second-quarter results were impressive as the company comfortably beat both earnings and sales estimates on the back of growth in Dupixent's sales.
Dupixent uptake in the United States for moderate-to-severe atopic dermatitis was encouraging. The performance of Regeneron's key growth driver, Eylea, continues to be strong as well and the recent label expansion of Eylea in patients with wet age-related macular degeneration will further boost sales.
The company is also working to expand Dupixent's label, which should diversify the company's revenue base and reduce dependence on Eylea. Immuno-oncology candidate cemiplimab's progress is promising as well and a potential approval for the treatment of cutaneous squamous cell carcinoma in October will be a significant boost for Regeneron.
Other noteworthy reports we are featuring today include Macy's and Deere.
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Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Oracle Corporation (ORCL): Free Stock Analysis Report
Intuit Inc. (INTU): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report
Macy's, Inc. (M): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Stocks recently featured in the blog include: OracleORCL , IntuitINTU , Regeneron PharmaceuticalsREGN , Macy'sM and DeereDE . Oracle 's shares have underperformed the Zacks Computer Software industry so far this year, gaining +4.4% vs. +24.7%.
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Click to get this free report Oracle Corporation (ORCL): Free Stock Analysis Report Intuit Inc. (INTU): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: OracleORCL , IntuitINTU , Regeneron PharmaceuticalsREGN , Macy'sM and DeereDE . Oracle 's shares have underperformed the Zacks Computer Software industry so far this year, gaining +4.4% vs. +24.7%.
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Click to get this free report Oracle Corporation (ORCL): Free Stock Analysis Report Intuit Inc. (INTU): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: OracleORCL , IntuitINTU , Regeneron PharmaceuticalsREGN , Macy'sM and DeereDE . Oracle 's shares have underperformed the Zacks Computer Software industry so far this year, gaining +4.4% vs. +24.7%.
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Stocks recently featured in the blog include: OracleORCL , IntuitINTU , Regeneron PharmaceuticalsREGN , Macy'sM and DeereDE . Oracle 's shares have underperformed the Zacks Computer Software industry so far this year, gaining +4.4% vs. +24.7%. However, Oracle is one of the largest enterprise-grade database, middleware and application software providers.
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721952.0
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2018-08-29 00:00:00 UTC
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Precision Agriculture Drives Deere (DE) as Costs Flare Up
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DE
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https://www.nasdaq.com/articles/precision-agriculture-drives-deere-de-as-costs-flare-up-2018-08-29
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On Aug 28, we issued an updated research report on Deere & CompanyDE . The company is anticipated to benefit from its focus on precision agriculture and strategic acquisitions. Positive outlook for its Construction & Forestry equipment segment also bodes well. However, concerns in the agriculture business and elevated expenses are expected to impact results.
Let's illustrate these factors in detail.
Deere to Gain From Focus on Precision Agriculture
Deere's focus on precision agriculture will be a catalyst. The Intelligent Solutions Group (ISG) is the company's premier development facility specializing in creating technology used in maximizing crop yields and improving food production infrastructure. In collaboration with its product platforms, the ISG facility has been advancing Deere's precision agriculture strategy and leading the industry in machine optimization, job execution and mobile management for farmers. Moreover, the company has been aggressively investing in its portfolio of ISG tools, including precision hardware, telematics, digital solution and advanced customer support.
Acquisitions Drive Deere's Growth
Over the last three years, Deere has effectively utilized M&A to help execute crop care strategy, completing four acquisitions, including Monosem, Hagie, Mazzotti, and King Agro. In September 2017, Deere acquired Sunnyvale, CA-based Blue River Technology. Blue River's technology has aided precision agriculture by shifting farm-management decisions from field level to plant level.
Further, the company acquired the world's leading road-construction equipment maker - Wirtgen - in December 2017. The buyout significantly enhances Deere's exposure to global transportation infrastructure. Wirtgen's integration is well underway with the Deere-Wirtgen team working toward the synergy target of EUR 100 million by fiscal 2022. Finally, Deere signed a definitive agreement to acquire PLA, a privately-held manufacturer of sprayers, planters, and specialty products for agriculture, in July 2018. The acquisition will assist Deere in providing innovative, cost-effective equipment, technology, and services to customers.
Upbeat Construction & Forestry Segment
Deere predicts global sales for Construction & Forestry equipment to soar 81% for fiscal 2018. The Wirtgen acquisition is likely to add about 55% to sales of the segment. The outlook is based on global economic growth, higher housing starts in the United States, and an improved oil and gas sector. Again, economic environment for the construction, forestry and road building industries bodes well, and continues to support elevated demand for new and used equipment.
Additionally, construction investment is estimated to rise 2.9% in fiscal 2018, led by increased activity in oil and gas. Deere projects oil prices to be around $67 a barrel for the fiscal. In addition, backlogs for many oilfield contractors are extending through fiscal 2019, which will boost equipment demand.
Headwinds in the Agriculture Business
Deere's agriculture business will be hurt in fiscal 2018 by expectations of high global grain and oil seed stocks-to-use ratios. This is because abundant crops have offset strong demand around the world. In addition, the corn stocks-to-use ratio is expected to decline in response to the rising global demand and drought conditions experienced during the first crop in Argentina, which lowered the country's corn production by roughly 25%. Moreover, the wheat stock-to-use ratio is projected to decline in response to intensifying drought conditions in Europe, Australia and the Black Sea region.
Elevated Costs to Impede Profit
Deere will bear the brunt of elevated expenses in fiscal 2018. The company believes an unfavorable product mix, higher overhead spending and increased incentive compensation will dampen margins. It also forecasts selling, general and administrative expense to flare up about 16% for the fiscal. Furthermore, unfavorable impact of acquisition cost and purchase accounting related to the Wirtgen buyout will hurt earnings. Also, unfavorable impacts of raw material prices, elevated freight cost, emissions costs, incentive compensation, voluntary separation expenses and pension, and OPEB expense remain headwinds.
Share Price Performance
Deere has outperformed the industry with respect to price performance, over the past year. While the stock has appreciated 27%, the industry recorded growth of 21%.
Zacks Rank & Key Picks
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are W.W. Grainger, Inc. GWW , iRobot Corporation IRBT and Atkore International Group Inc. ATKR . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Grainger has a long-term earnings growth rate of 12.5%. Its shares have appreciated a whopping 130%, over the past year.
iRobot Corporation has a long-term earnings growth rate of 19.5%. The company's shares have gained 27% in a year's time.
Atkore International has a long-term earnings growth rate of 10%. The stock has rallied 69% in a year's time.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Atkore International Group Inc. (ATKR): Free Stock Analysis Report
iRobot Corporation (IRBT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Intelligent Solutions Group (ISG) is the company's premier development facility specializing in creating technology used in maximizing crop yields and improving food production infrastructure. In collaboration with its product platforms, the ISG facility has been advancing Deere's precision agriculture strategy and leading the industry in machine optimization, job execution and mobile management for farmers. Finally, Deere signed a definitive agreement to acquire PLA, a privately-held manufacturer of sprayers, planters, and specialty products for agriculture, in July 2018.
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In addition, the corn stocks-to-use ratio is expected to decline in response to the rising global demand and drought conditions experienced during the first crop in Argentina, which lowered the country's corn production by roughly 25%. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. On Aug 28, we issued an updated research report on Deere & CompanyDE .
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Deere to Gain From Focus on Precision Agriculture Deere's focus on precision agriculture will be a catalyst. Acquisitions Drive Deere's Growth Over the last three years, Deere has effectively utilized M&A to help execute crop care strategy, completing four acquisitions, including Monosem, Hagie, Mazzotti, and King Agro. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere to Gain From Focus on Precision Agriculture Deere's focus on precision agriculture will be a catalyst. On Aug 28, we issued an updated research report on Deere & CompanyDE . Positive outlook for its Construction & Forestry equipment segment also bodes well.
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da0dbec6-368f-4ed7-b3b4-9ee647427c01
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721953.0
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2018-08-29 00:00:00 UTC
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5 Agriculture Stocks to Buy to Help You Harvest Profits
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DE
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https://www.nasdaq.com/articles/5-agriculture-stocks-to-buy-to-help-you-harvest-profits-2018-08-29
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Agriculture stocks often find themselves ignored by most stock market investors. They lack the sex appeal of tech or the boom cycles of energy. However, none of us can live without food or the clothing that this sector brings. Also, because farmland serves as a vast American resource, U.S. agriculture goes a long way toward feeding much of the world. In fact, the ag sector finds itself caught in the middle of America's recent trade war with China.
Despite its importance, the sector has remained out of favor for decades. Due to its unpopularity, another trend has emerged in this sector that could benefit investors but hurt the population at large. In the United States, the average farmer has reached the age of 58.3 years . This trend also appears in other developed countries.
This becomes dangerous as once these farmers retire or pass away, critical food shortages could arise. As such, I will use my soapbox to appeal to the young and the career changers. For those who are looking for a potentially lucrative career in a rural setting, please consider enrolling in a school such as Iowa State or Texas A&M to study agriculture.
7 Fast-Moving Semiconductor Stocks Ready to Blast Higher
Regarding investors, my appeal takes on a similar tone. While we all hope this worst-case scenario does not occur, such shortages will likely send all ag-related stocks higher. These five agriculture stocks to buy trade at lower valuations and offer the potential for growth as the farming sector stages a comeback.
Agriculture Stocks to Buy: Deere & Co. (DE)
Source: Ford8n via Flickr (Modified)
The equipment produced by Deere (NYSE: DE ) makes possible the scale of farming occurring today. Most Americans know Deere tractors and other farm equipment by the shade of green it uses to paint its equipment. However, as the shortage of farmers becomes more acute, equipment will play a more critical role in helping to maintain production levels. This makes DE stock one of the essential agriculture stocks to buy.
After seeing profits fall over the last few years, Deere finds itself growing again. For the year, analysts forecast 43% net income growth this year and 22% the next. Wall Street expects an average growth rate of 27.38% per year over the next five years.
Prospective buyers will also like that the price-to-earnings (P/E) ratio has yet to catch up to this growth. Given predicted earnings of $9.54 per share for 2018, DE stock trades at just over 15 times forward earnings. They will also like that they can buy this stock for over 16% less than the high reached in January.
The stock saw similar pullbacks in 2011 and 2015. Each time, DE stock regained the loss and moved higher. Given the profit growth predicted, the same thing will likely happen again.
Moreover, they will earn a 1.9% dividend yield while they wait for the recovery.
Despite this average yield, investors should know that DE has seen a long history of annual dividend increases in most years. Last quarter, the stock saw its first dividend increase since 2015. Assuming profits continue on the current path, one can expect the dividend increases will continue as well. Given the low P/E, the growth rate and the prospect for dividend increases, DE stock should serve as a lucrative vehicle to profit from the farmer shortage.
Agriculture Stocks to Buy: Israel Chemicals (ICL)
Source: Shutterstock
Israel Chemicals (NYSE: ICL ) finds itself well-positioned among agriculture stocks to buy. As the name implies, this company bases itself in Israel, although it sells its products worldwide. ICL produces performance, industrial, and fertilizer products. However, fertilizer drives the majority of its revenue and profits. This fertilizer increases both the supply and the quality of food available in over 180 countries. Despite the stock's market cap of about $7.3 billion, ICL has become the sixth-largest producer of potash.
ICL stock trades at a forward P/E of around 14. Even with this multiple, analysts expect to see 23% profit growth this year. They also predict 14% growth next year.
That said, investors should keep an eye on this stock as the fertilizer industry can catch investors off-guard. In 2011, ICL stock traded as high as $18.45 per share. The stock fell steadily until it reached a low of $3.52 per share in 2016. Since then, the stock has moved upward and today trades close to $5.70 per share.
The dividend followed much the same pattern, falling from an annual rate of $3.48 per share in 2010 to as low as 11 cents per share in 2017. However, this year, shareholders will earn 17 cents per share in dividends. This takes the dividend yield to about 3%. As long as profits continue to grow, this dividend should likely follow.
Oppenheimer's 7 Top Stock Picks for September
The fertilizer business can see a high level of volatility as most of this decade has proven. Still, the stock appears to have broken its downtrend. With the low P/E and the high dividend, I think ICL stock will remain profitable as long as it can maintain profit growth in future years.
Agriculture Stocks to Buy: Industrias Bachoco (IBA)
Source: Shutterstock
Bachoco (NYSE: IBA ) has become one of the leading poultry producers in North America. Based in Celaya, Mexico, it also operates in the United States by having purchased O.K. Foods, Inc. It produces chicken, eggs, feed, swine and turkey. It runs over 1,000 facilities in both Mexico and the U.S. Together these employ about 25,000 people.
The effects of the recent Mexico-U.S. free trade agreement have yet to become known. Still, from an investment perspective, its market dominance in Mexico and share of the U.S. market position the company well. For those hesitant to invest in a Mexican company, know that Bachoco received a AAA credit rating from Fitch Mexico, the highest score available on Fitch's scale.
Analysts expect a drop in earnings this year. Hence the forward P/E stands at about 12.4, up from the current 10.8 multiple. However, Wall Street projects the company will increase earnings by 6.7% next year. This pattern of increases in the mid-to-high-single-digits should continue in the years to come.
While I like the earnings and the multiples on other agriculture stocks better, the connection to Mexico becomes vital for another reason. About 13.1% of Mexico's workforce is employed in the ag sector. Fewer than 2% of U.S. workers work in the ag sector. This could help to provide food and workers should the U.S. shortage become unbearable. By extension, IBA stock would benefit as well.
Bachoco offers a low multiple, a high credit rating and understanding of the U.S. market. What it lakcs in profit growth, it makes up for in capacity. Given the growing importance of the sector and its connection to the U.S., investors should keep IBA stock on their list of agriculture stocks to buy.
Agriculture Stocks to Buy: Scotts Miracle-Gro (SMG)
Source: Shutterstock
Most Americans know Scotts Miracle-Gro (NYSE: SMG ) best for fertilizer. As such, it has attracted little investor interest until recently. However, Scotts has improved its fortunes by capitalizing on a growing trend within the developed world - cannabis legalization. This loosening of marijuana restrictions helps to make it one of the more interesting agriculture stocks to buy.
Through a division called the Hawthorne Gardening Company, Scotts now provides products to help artisanal cannabis farmers grow weed. As a result, most investor interest in SMG stocks now revolves around marijuana.
In fact, during the last quarter, a revenue miss within Hawthorne sent SMG stock tumbling. However, as I inferred in a recent article , delays brought about by California regulatory authorities likely brought about the decline. As more states legalize, California will begin to represent a lower percentage of sales.
Furthermore, SMG stock remains one of the few agriculture stocks to buy that involves itself with cannabis and still trades at a reasonable valuation. SMG stock sells at a forward P/E of about 19.6. This compares well to marijuana company leaders Canopy Growth (NYSE: CGC ) and Aurora Cannabis (OTCMKTS: ACBFF ) who trade at triple-digit PE ratios when they support PE ratios at all.
21 Beverage Stocks to Buy for the Contrarian-Minded
Other metrics bode well for the equity. Holders of SMG stock will receive a dividend yield of about 3%. For next year, analysts also forecast profit growth of 11.9%. Growth may slow in future years. However, given the premium multiples on today's marijuana stocks, the P/E below 20 serves as only one of the many compelling reasons to buy SMG stock.
Agriculture Stocks to Buy: Tyson Foods (TSN)
Source: Shutterstock
Springdale, Arkansas-based Tyson Foods (NYSE: TSN ) has grown into the world's second-largest company involved in the production of chicken, pork and beef. It also owns several familiar food brands, including Jimmy Dean, Hillshire Farm, Ball Park and Sara Lee. Consumers can find Tyson products in most major grocery stores. They also supply restaurant chains such as Yum! Brands (NYSE: YUM ) restaurants such as KFC and Taco Bell , as well as McDonald's (NYSE: MCD ) and Wendy's (NASDAQ: WEN ). Store chains such as Walmart (NYSE: WMT ) and Kroger (NYSE: KR ) also sell large amounts of Tyson products.
Tyson has also made efforts to sell abroad. Purchasing Marfrig Global Foods and Keystone Foods gives Tyson international exposure. Tariff worries have taken TSN stock down over the near term. However, the recent trade deal with Mexico gives investors hope that tariffs will become only a temporary concern.
Hence, the fall in TSN stock and the low multiple should attract investors. TSN trades at a forward P/E of about 10.7. Additionally, analysts expect to see 10.5% profit growth from last year's levels. Though profits could slow next year, Wall Street still expects average profit growth of 7.5% per year over the next five years.
While buyers wait for the stock price to recover, they can earn a dividend yield of around 1.9%. While not a high yield, Tyson has increased this dividend in most years. Hence, it could become a good reason to stay in the stock even if a recovery comes slowly. Given the attractive financials, as well as Tyson's involvement in the production process, TSN stock could end up becoming one of the better agriculture stocks to buy.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You canfollow Will on Twitterat @HealyWriting.
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The post 5 Agriculture Stocks to Buy to Help You Harvest Profits appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the low P/E, the growth rate and the prospect for dividend increases, DE stock should serve as a lucrative vehicle to profit from the farmer shortage. Through a division called the Hawthorne Gardening Company, Scotts now provides products to help artisanal cannabis farmers grow weed. It also owns several familiar food brands, including Jimmy Dean, Hillshire Farm, Ball Park and Sara Lee.
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In fact, the ag sector finds itself caught in the middle of America's recent trade war with China. Despite its importance, the sector has remained out of favor for decades. This trend also appears in other developed countries.
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In fact, the ag sector finds itself caught in the middle of America's recent trade war with China. Despite its importance, the sector has remained out of favor for decades. This trend also appears in other developed countries.
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With the low P/E and the high dividend, I think ICL stock will remain profitable as long as it can maintain profit growth in future years. Furthermore, SMG stock remains one of the few agriculture stocks to buy that involves itself with cannabis and still trades at a reasonable valuation. While not a high yield, Tyson has increased this dividend in most years.
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20bcb673-e719-4e27-8497-cad98a952b80
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721954.0
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2018-08-27 00:00:00 UTC
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Why the Best Is Yet to Come for Deere
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DE
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https://www.nasdaq.com/articles/why-best-yet-come-deere-2018-08-27
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nan
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nan
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It's no secret that companies such as Deere & Company (NYSE: DE) and Caterpillar Inc. (NYSE: CAT) have cyclical earnings. Their revenue tends to experience peaks and troughs, and they don't necessarily align with the economy at large. The fear with Deere (and with Caterpillar) is that the uptick in the past couple of years will mark a local peak, and no one really feels comfortable buying a stock whose growth has peaked. That said, all cycles are different, and I think there could be more room to run with Deere. Here's why.
DE Revenue (TTM) data by YCharts
Not your usual Deere cycle
The typical agricultural machinery equipment cycle is led by crop prices that can fluctuate significantly. Weather obviously plays a large factor in moving crop prices around -- bad weather tends to reduce crop yields and therefore raise crop prices -- but there's also the usual agricultural business cycle to consider.
This works in terms of high prices that cause farmers to plant more crops, leading to increased harvests that then cause lower prices in the next period. Now that prices are lower, farmers tend to reduce planting, or switch to another crop where they can, and the reduced harvest causes higher prices. Then the cycle begins again.
Of course, the impact on movements in crop prices, and specifically farm cash receipts, for agricultural machinery companies like Deere is significant. Indeed, every singleearnings conference callfrom Deere contains a chart and a forecast for U.S. farm cash receipts -- the U.S. is Deere's core market.
But here's the key point. Deere is managing to increase revenue and profitability even as U.S. farm cash income has flat-lined in recent years and global crop prices remain weak.
For example, Deere is forecasting U.S. farm total cash receipts (crops, livestock, and government payments) to decline slightly in 2018 to $375.6 billion from $376.5 billion in 2017. Moreover, the 2018 forecast is only a 1.4% increase on the $370.2 billion recorded in 2016. Key crop prices have made somewhat of a recovery in the past year or so but still remain significantly below levels of a few years ago:
US Corn Farm Price Received data by YCharts
No matter. Deere is still growing. But how?
How and why Deere is raising revenue and earnings
On the recent third-quarterearnings call management outlined two key points regarding its agricultural equipment end markets.
First, "in agricultural markets, replacement demand continues to drive sales activity for large equipment," according to Manager of Investor Communications Brent Norwood.
Second, demand for replacement equipment has been accompanied by farmers' showing "continued willingness to invest in technologies that enhance operational efficiencies and produce tangible economic results," according to CFO Raj Kalathur.
In a nutshell, the replacement demand cycle has given Deere an opportunity to drive sales of its advanced technological solutions. These products include things such as telematics, precision hardware, spraying technology, digital solutions, and customer support. Take-up rates appear to be very high, with President of Agricultural Solutions John May saying that "recent precision hardware solutions" have achieved "take rates in excess of 50%" in some cases.
In Deere's construction and forestry segment, management cited a raft of U.S. construction industry indicators that are looking more positive than they did three months ago. For example, U.S. total construction investment in the U.S. is now expected to grow by 3.8% in 2018, compared with a previous estimate of 2.9%. That's also good news for Caterpillar, and it's worth noting that Caterpillar's management believes it's still in the early innings of an upcycle in mining machinery spending.
What it means to investors
Looking ahead, analysts have Deere's sales growing at 7.2% in 2019. Although management pointed out that it was too early to draw any firm conclusions about next year, May also pointed out that its early order programs were ahead of last year's, despite some uncertainty around any potential escalation in trade conflict. Similarly, "we feel good about the continued replacement demand that we are seeing drive technology adoption," according to Director of Investor Relations Josh Jepsen.
In other words, Deere has good underlying demand from the replacement cycle and take-up of its technological solutions in agricultural equipment, while construction demand remains good. If this is accompanied by any kind pickup in crop prices -- inclement weather could help -- and if farm income improves, then there is upside to analyst estimates. Deere's cycle may well have further to run.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere is managing to increase revenue and profitability even as U.S. farm cash income has flat-lined in recent years and global crop prices remain weak. How and why Deere is raising revenue and earnings On the recent third-quarterearnings call management outlined two key points regarding its agricultural equipment end markets. Second, demand for replacement equipment has been accompanied by farmers' showing "continued willingness to invest in technologies that enhance operational efficiencies and produce tangible economic results," according to CFO Raj Kalathur.
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DE Revenue (TTM) data by YCharts Not your usual Deere cycle The typical agricultural machinery equipment cycle is led by crop prices that can fluctuate significantly. First, "in agricultural markets, replacement demand continues to drive sales activity for large equipment," according to Manager of Investor Communications Brent Norwood. In other words, Deere has good underlying demand from the replacement cycle and take-up of its technological solutions in agricultural equipment, while construction demand remains good.
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DE Revenue (TTM) data by YCharts Not your usual Deere cycle The typical agricultural machinery equipment cycle is led by crop prices that can fluctuate significantly. Weather obviously plays a large factor in moving crop prices around -- bad weather tends to reduce crop yields and therefore raise crop prices -- but there's also the usual agricultural business cycle to consider. In other words, Deere has good underlying demand from the replacement cycle and take-up of its technological solutions in agricultural equipment, while construction demand remains good.
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Deere is managing to increase revenue and profitability even as U.S. farm cash income has flat-lined in recent years and global crop prices remain weak. In a nutshell, the replacement demand cycle has given Deere an opportunity to drive sales of its advanced technological solutions. In other words, Deere has good underlying demand from the replacement cycle and take-up of its technological solutions in agricultural equipment, while construction demand remains good.
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29a061f0-5bff-447f-b20a-fa3dfdbf26e5
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721955.0
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2018-08-24 00:00:00 UTC
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Notable Friday Option Activity: WDAY, VRTX, DE
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DE
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https://www.nasdaq.com/articles/notable-friday-option-activity-wday-vrtx-de-2018-08-24
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Workday Inc (Symbol: WDAY), where a total volume of 7,091 contracts has been traded thus far today, a contract volume which is representative of approximately 709,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.4% of WDAY's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $105 strike put option expiring March 15, 2019 , with 700 contracts trading so far today, representing approximately 70,000 underlying shares of WDAY. Below is a chart showing WDAY's trailing twelve month trading history, with the $105 strike highlighted in orange:
Vertex Pharmaceuticals, Inc. (Symbol: VRTX) saw options trading volume of 4,474 contracts, representing approximately 447,400 underlying shares or approximately 44.9% of VRTX's average daily trading volume over the past month, of 996,380 shares. Particularly high volume was seen for the $210 strike call option expiring September 14, 2018 , with 1,368 contracts trading so far today, representing approximately 136,800 underlying shares of VRTX. Below is a chart showing VRTX's trailing twelve month trading history, with the $210 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 12,214 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 44.8% of DE's average daily trading volume over the past month, of 2.7 million shares. Particularly high volume was seen for the $155 strike call option expiring September 21, 2018 , with 1,643 contracts trading so far today, representing approximately 164,300 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $155 strike highlighted in orange:
For the various different available expirations for WDAY options , VRTX options , or DE options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $105 strike put option expiring March 15, 2019 , with 700 contracts trading so far today, representing approximately 70,000 underlying shares of WDAY. Particularly high volume was seen for the $210 strike call option expiring September 14, 2018 , with 1,368 contracts trading so far today, representing approximately 136,800 underlying shares of VRTX. Particularly high volume was seen for the $155 strike call option expiring September 21, 2018 , with 1,643 contracts trading so far today, representing approximately 164,300 underlying shares of DE.
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Below is a chart showing WDAY's trailing twelve month trading history, with the $105 strike highlighted in orange: Vertex Pharmaceuticals, Inc. (Symbol: VRTX) saw options trading volume of 4,474 contracts, representing approximately 447,400 underlying shares or approximately 44.9% of VRTX's average daily trading volume over the past month, of 996,380 shares. Particularly high volume was seen for the $210 strike call option expiring September 14, 2018 , with 1,368 contracts trading so far today, representing approximately 136,800 underlying shares of VRTX. Below is a chart showing VRTX's trailing twelve month trading history, with the $210 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 12,214 contracts thus far today.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Workday Inc (Symbol: WDAY), where a total volume of 7,091 contracts has been traded thus far today, a contract volume which is representative of approximately 709,100 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing WDAY's trailing twelve month trading history, with the $105 strike highlighted in orange: Vertex Pharmaceuticals, Inc. (Symbol: VRTX) saw options trading volume of 4,474 contracts, representing approximately 447,400 underlying shares or approximately 44.9% of VRTX's average daily trading volume over the past month, of 996,380 shares. Particularly high volume was seen for the $155 strike call option expiring September 21, 2018 , with 1,643 contracts trading so far today, representing approximately 164,300 underlying shares of DE.
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Especially high volume was seen for the $105 strike put option expiring March 15, 2019 , with 700 contracts trading so far today, representing approximately 70,000 underlying shares of WDAY. Below is a chart showing WDAY's trailing twelve month trading history, with the $105 strike highlighted in orange: Vertex Pharmaceuticals, Inc. (Symbol: VRTX) saw options trading volume of 4,474 contracts, representing approximately 447,400 underlying shares or approximately 44.9% of VRTX's average daily trading volume over the past month, of 996,380 shares. Particularly high volume was seen for the $155 strike call option expiring September 21, 2018 , with 1,643 contracts trading so far today, representing approximately 164,300 underlying shares of DE.
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a608f7f2-5588-4103-8cf9-d5f19c480398
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721956.0
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2018-08-17 00:00:00 UTC
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Deere & Co. Is the Quintessential Trump Stock – For Better or Worse
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DE
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https://www.nasdaq.com/articles/deere-co-quintessential-trump-stock-better-or-worse-2018-08-17
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Throughout the presidential campaign trail, then-real estate mogul and reality TV celebrity Donald Trump lavished praise on Deere & Company (NYSE: DE ). And I don't think we can underestimate how important Trump has been for DE stock holders.
Deere is the quintessential "Trump stock," meaning it's American, manufactures products in America and competes against the Japanese.
Aside from Caterpillar (NYSE: CAT ), Harley-Davidson (NYSE: HOG ), and whatever company makes those "MAGA" hats, few organizations lever conservative street cred like Deere.
Indeed, during President Trump's first year in office, DE stock skyrocketed at an unbelievable rate. For 2017, shares gained nearly 54%. Even more impressive, this performance followed 2016's robust return of nearly 40%. Interesting to note, DE jumped significantly in mid-November of that year, a few days after Trump became President-elect.
But it's not just Trump talking up Deere that led to a resurgence in DE stock. The president has consistently upheld his "America First" message. This has meant promising "consequences" for companies taking their businesses abroad.
On a more positive scope, America First also means increased manufacturing for domestic projects, such as the U.S.-Mexico wall. In addition, Trump this year signed a $1.3 trillion spending bill for the military. It's the largest military budget in history, and reflects the President's commitment to lead through strength.
All these developments potentially bolster DE stock, with the underlying company having exposure to civilian, government and military sectors.
Unfortunately, while last year's results suggested another promising year in 2018, it hasn't happened. Prior to its third-quarter earnings report, DE stock was down 11.5% year-to-date. Can Deere recover, or should investors look for greener pastures?
Rescue Your Retirement With High-Growth Dividend Stocks
Deere Generates Strong Growth but Leaves Questions
Heading into the Q3 report, Deere enjoyed a long string of earnings success. Since Q1 2015, the company beat all profitability expectations, except in the last Q2 report. Therefore, it was critical for Deere to right the ship. Regrettably, investors didn't quite receive a solid feel from this latest showing.
For Q3, consensus estimates pegged earnings per share at $2.75. This was near the higher end of individual forecasts, which ranged between $2.53 and $2.90. The actual figure, though, was a disappointingly mixed $2.59, or a nearly 6% negative earnings surprise.
Investors obviously didn't care for the fact that this is now two consecutive misses against EPS consensus targets. Furthermore, the magnitude isn't insignificant. In the prior Q2 report, Deere produced a $3.14 EPS against a $3.31 consensus forecast. Yet, despite its EPS miss in Q3, Deere's per-share earnings results represent a 31% lift year-over-year.
Also a positive was revenue growth. Against a consensus estimate that called for $9.21 billion, the company rang up $9.29 billion, or nearly a 1% surprise. This haul was also right near the top end of individual estimates , which ranged between $9.1 billion and $9.3 billion. In the year-ago quarter, Deere delivered revenue of $6.8 billion.
The company saw growth across multiple businesses. That said, a particular highlight was its agricultural and turf unit, which contributed $6.29 billion in sales.
Under ordinary circumstances, investors may have taken the strong revenue figures as an affirmation of DE stock. But due to the geopolitical backdrop, the markets sold off shares quickly. Before the opening bell, shares dropped 4% before climbing back up.
Currently, the Trump administration has multi-billion dollar tariffs against China, Europe, and Mexico. The two nations and the European Union have retaliated in kind.
DE Stock a Victim of Irony
The best way to explain DE stock over the trailing two years is that it's a victim of irony. President Trump's focus and reaffirmation of the American economic machinery boosted DE and its compatriots. However, it's this same America First approach that has put off the markets recently.
Trump loves America, and he wants to see his country win gold across every economic metric. From a perspective of personal pride, I get it. However, we must be realistic: We'll never achieve this goal.
Simply put, the markets are agnostic. They don't care about anything but the bottom line. Due to realities such as economies of scale, some nations are better equipped for specific output. We can't win all battles.
Certainly, we can't afford to make too many enemies with our patriotic fervor. Deere is a great company, no doubt about it. But they can't survive based on North American sales alone.
This point is further driven home due to possible headwinds impacting housing starts . While we've seen strong numbers in this sector for much of 2018, recently, housing starts have dipped.
The decline could be an anomaly, or it could be a sign of something more serious. If the latter, we definitely can't afford an overly-aggressive foreign policy. However, I don't see the Trump administration backing down, which presents risks for DE stock.
Still, against a tough backdrop, Deere managed outstanding revenue growth. I don't think you should overlook that. As a result, I'm cautiously optimistic on DE stock.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.
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The post Deere & Co. Is the Quintessential Trump Stock - For Better or Worse appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Throughout the presidential campaign trail, then-real estate mogul and reality TV celebrity Donald Trump lavished praise on Deere & Company (NYSE: DE ). Deere is the quintessential "Trump stock," meaning it's American, manufactures products in America and competes against the Japanese. All these developments potentially bolster DE stock, with the underlying company having exposure to civilian, government and military sectors.
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Deere is the quintessential "Trump stock," meaning it's American, manufactures products in America and competes against the Japanese. Rescue Your Retirement With High-Growth Dividend Stocks Deere Generates Strong Growth but Leaves Questions Heading into the Q3 report, Deere enjoyed a long string of earnings success. More From InvestorPlace Rescue Your Retirement With High-Growth Dividend Stocks Safe Investments to Regularly Earn 12%-Plus These 9 Dividend Stocks Are About to Soar -- Thanks to Donald Trump 7 Dividend Growth Stocks to Buy, Including Disney Compare Brokers The post Deere & Co. Is the Quintessential Trump Stock - For Better or Worse appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Throughout the presidential campaign trail, then-real estate mogul and reality TV celebrity Donald Trump lavished praise on Deere & Company (NYSE: DE ). Rescue Your Retirement With High-Growth Dividend Stocks Deere Generates Strong Growth but Leaves Questions Heading into the Q3 report, Deere enjoyed a long string of earnings success. More From InvestorPlace Rescue Your Retirement With High-Growth Dividend Stocks Safe Investments to Regularly Earn 12%-Plus These 9 Dividend Stocks Are About to Soar -- Thanks to Donald Trump 7 Dividend Growth Stocks to Buy, Including Disney Compare Brokers The post Deere & Co. Is the Quintessential Trump Stock - For Better or Worse appeared first on InvestorPlace .
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Indeed, during President Trump's first year in office, DE stock skyrocketed at an unbelievable rate. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Throughout the presidential campaign trail, then-real estate mogul and reality TV celebrity Donald Trump lavished praise on Deere & Company (NYSE: DE ). And I don't think we can underestimate how important Trump has been for DE stock holders.
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721957.0
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2018-08-17 00:00:00 UTC
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Mid-Day Market Update: Zoe's Kitchen Surges On Acquisition News; Amyris Shares Plunge
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DE
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https://www.nasdaq.com/articles/mid-day-market-update-zoes-kitchen-surges-acquisition-news-amyris-shares-plunge-2018-08-17
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nan
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Midway through trading Friday, the Dow traded up 0.06 percent to 25,575.01 while the NASDAQ declined 0.47 percent to 7,769.54. The S&P also fell, dropping 0.05 percent to 2,839.42.
Leading and Lagging Sectors
On Friday, the telecommunication services shares rose 0.79 percent. Meanwhile, top gainers in the sector included Cincinnati Bell Inc. (NYSE: CBB ) up 3 percent, and Frontier Communications Corporation (NASDAQ: FTR ) up 2 percent.
In trading on Friday, information technology shares fell 0.52 percent.
Top Headline
Deere & Company (NYSE: DE ) reported weaker-than-expected earnings for its third quarter.
Earnings came in at $2.59 per share, missing estimates of $2.75 per share. Total equipment sales climbed 36 percent to $9.3 billion.
Equities Trading UP
Tel-Instrument Electronics Corp. (NYSE: TIK ) shares shot up 58 percent to $4.10 after the company reported a multi-million dollar order from the German government.
Shares of Zoe's Kitchen, Inc. (NYSE: ZOES ) got a boost, shooting up 34 percent to $12.77 after the company agreed to be acquired by CAVA Group for $12.75 per share.
IZEA, Inc. (NASDAQ: IZEA ) shares were also up, gaining 26 percent to $1.3801 after the company highlighted several contracts won in Q3. CEO Ted Murphy said the company could be at the beginning of a rebound in bookings.
Equities Trading DOWN
Zion Oil & Gas, Inc. (NASDAQ: ZN ) shares dropped 27 percent to $1.8323. Zion Oil & Gas disclosed that it is completing the initial testing program of its primary zones located within the Triassic-age Mohilla Formation of the Megiddo-Jezreel #1 well.
Shares of Adtalem Global Education Inc. (NYSE: ATGE ) were down 15 percent to $47.20 after the company reported weaker-than-expected Q4 results.
Amyris, Inc. (NASDAQ: AMRS ) was down, falling around 12 percent to $6.575 after the company announced a 7.65 million share secondary offering at $6.25 per share.
Commodities
In commodity news, oil traded up 0.55 percent to $65.82 while gold traded up 0.14 percent to $1,185.60.
Silver traded down 0.26 percent Friday to $14.675, while copper rose 0.67 to $2.634.
Eurozone
European shares were lower today. The eurozone's STOXX 600 dropped 0.47 percent, the Spanish Ibex Index fell 0.50 percent, while Italy's FTSE MIB Index declined 1.05 percent. Meanwhile the German DAX declined 0.58 percent, and the French CAC 40 slipped 0.49 percent while U.K. shares fell 0.26 percent.
Economics
The University of Michigan's consumer sentiment index dropped to 95.3 in August, versus 97.9 in July. However, economists were expecting a reading of 98.1.
The leading economic index increased 0.6 percent in July, versus a 0.5 percent increase in June.
The Baker Hughes North American rig count report for the recent week will be released at 1:00 p.m. ET.
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Equities Trading UP Tel-Instrument Electronics Corp. (NYSE: TIK ) shares shot up 58 percent to $4.10 after the company reported a multi-million dollar order from the German government. Midway through trading Friday, the Dow traded up 0.06 percent to 25,575.01 while the NASDAQ declined 0.47 percent to 7,769.54. Meanwhile, top gainers in the sector included Cincinnati Bell Inc. (NYSE: CBB ) up 3 percent, and Frontier Communications Corporation (NASDAQ: FTR ) up 2 percent.
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Top Headline Deere & Company (NYSE: DE ) reported weaker-than-expected earnings for its third quarter. The leading economic index increased 0.6 percent in July, versus a 0.5 percent increase in June. Midway through trading Friday, the Dow traded up 0.06 percent to 25,575.01 while the NASDAQ declined 0.47 percent to 7,769.54.
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Midway through trading Friday, the Dow traded up 0.06 percent to 25,575.01 while the NASDAQ declined 0.47 percent to 7,769.54. The eurozone's STOXX 600 dropped 0.47 percent, the Spanish Ibex Index fell 0.50 percent, while Italy's FTSE MIB Index declined 1.05 percent. Meanwhile the German DAX declined 0.58 percent, and the French CAC 40 slipped 0.49 percent while U.K. shares fell 0.26 percent.
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Midway through trading Friday, the Dow traded up 0.06 percent to 25,575.01 while the NASDAQ declined 0.47 percent to 7,769.54. The eurozone's STOXX 600 dropped 0.47 percent, the Spanish Ibex Index fell 0.50 percent, while Italy's FTSE MIB Index declined 1.05 percent. Meanwhile, top gainers in the sector included Cincinnati Bell Inc. (NYSE: CBB ) up 3 percent, and Frontier Communications Corporation (NASDAQ: FTR ) up 2 percent.
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2018-08-17 00:00:00 UTC
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Deere & Company Stock Up Despite Q3 Earnings Miss
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https://www.nasdaq.com/articles/deere-company-stock-despite-q3-earnings-miss-2018-08-17
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company (NYSE: DE ) stock was down on Friday following the release of its earnings report for its fiscal third quarter of 2018.
Source: Ford8n via Flickr (Modified)
During its fiscal third quarter of the year, Deere & Company reported earnings per share of $2.59. This is better than its earnings per share of $1.97 from the same time last year. However, it was below Wall Street's earnings per share estimate of $2.75 for the quarter, but wasn't enough to keep DE stock down today.
Deere & Company's earnings report for its fiscal third quarter of 2018 also includes net income of $911.30 million. The company's net income from its fiscal third quarter of 2017 was $642.30 million.
Operating profit reported by Deere & Company for its fiscal third quarter of the year came in at $1.28 billion. This is up from the agricultural equipment manufacturer's operating profit of $1.00 billion from the same period of the year prior.
Deere & Company also reported revenue of $10.31 billion for its fiscal third quarter of 2018. This is an increase over its revenue of $7.81 billion that was reported in its fiscal third quarter of the previous year. It also came in above analysts' revenue estimate of $9.21 billion for the period.
10 Financial Stocks to Consider Before They're No Longer Worth It
Deere & Company says that it is expecting revenue for its fiscal full year of 2018 to be up around 26%. The company's revenue from its fiscal 2017 year was $29.74 billion. This means its is expecting revenue for fiscal 2018 to come in at about $37.47 billion. Wall Street is looking for revenue of $33.78 billion for the period.
DE stock was down at the start of trading today, but is up 1% as of Friday morning.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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The post Deere & Company Stock Up Despite Q3 Earnings Miss appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: Ford8n via Flickr (Modified) During its fiscal third quarter of the year, Deere & Company reported earnings per share of $2.59. However, it was below Wall Street's earnings per share estimate of $2.75 for the quarter, but wasn't enough to keep DE stock down today. 10 Financial Stocks to Consider Before They're No Longer Worth It Deere & Company says that it is expecting revenue for its fiscal full year of 2018 to be up around 26%.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was down on Friday following the release of its earnings report for its fiscal third quarter of 2018. Source: Ford8n via Flickr (Modified) During its fiscal third quarter of the year, Deere & Company reported earnings per share of $2.59. Deere & Company's earnings report for its fiscal third quarter of 2018 also includes net income of $911.30 million.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was down on Friday following the release of its earnings report for its fiscal third quarter of 2018. Operating profit reported by Deere & Company for its fiscal third quarter of the year came in at $1.28 billion. Deere & Company also reported revenue of $10.31 billion for its fiscal third quarter of 2018.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was down on Friday following the release of its earnings report for its fiscal third quarter of 2018. Deere & Company also reported revenue of $10.31 billion for its fiscal third quarter of 2018. Source: Ford8n via Flickr (Modified) During its fiscal third quarter of the year, Deere & Company reported earnings per share of $2.59.
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2018-08-17 00:00:00 UTC
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Mid-Morning Market Update: Markets Open Lower; Deere Profit Misses Views
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https://www.nasdaq.com/articles/mid-morning-market-update-markets-open-lower-deere-profit-misses-views-2018-08-17
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Following the market opening Friday, the Dow traded down 0.06 percent to 25,543.20 while the NASDAQ declined 0.54 percent to 7,764.69. The S&P also fell, dropping 0.17 percent to 2,835.99.
Leading and Lagging Sectors
Friday morning, the consumer staples shares rose 0.29 percent. Meanwhile, top gainers in the sector included CV Sciences, Inc. (OTC: CVSI ) up 10 percent, and Coca-Cola FEMSA, S.A.B. de C.V. (NYSE: KOF ) up 4 percent.
In trading on Friday, information technology shares fell 0.53 percent.
Top Headline
Deere & Company (NYSE: DE ) reported weaker-than-expected earnings for its third quarter.
Earnings came in at $2.59 per share, missing estimates of $2.75 per share. Total equipment sales climbed 36 percent to $9.3 billion.
Equities Trading UP
Tel-Instrument Electronics Corp. (NYSE: TIK ) shares shot up 94 percent to $5.05 after the company reported a multi-million dollar order from the German government.
Shares of Zoe's Kitchen, Inc. (NYSE: ZOES ) got a boost, shooting up 34 percent to $12.78 after the company agreed to be acquired by CAVA Group for $12.75 per share.
Koss Corporation (NASDAQ: KOSS ) shares were also up, gaining 12 percent to $2.95 after the company reported a year-over-year increase in Q4 EPS and sales.
Equities Trading DOWN
Zion Oil & Gas, Inc. (NASDAQ: ZN ) shares dropped 31 percent to $1.75. Zion Oil & Gas disclosed that it is completing the initial testing program of its primary zones located within the Triassic-age Mohilla Formation of the Megiddo-Jezreel #1 well.
Shares of Adtalem Global Education Inc. (NYSE: ATGE ) were down 17 percent to $46.45 after the company reported weaker-than-expected Q4 results.
Amyris, Inc. (NASDAQ: AMRS ) was down, falling around 10 percent to $6.736 after reporting launch of secondary offering by certain selling stockholders.
Commodities
In commodity news, oil traded up 0.81 percent to $65.99 while gold traded up 0.02 percent to $1,184.20.
Silver traded down 0.53 percent Friday to $14.635, while copper rose 0.19 to $2.64.
Eurozone
European shares were lower today. The eurozone's STOXX 600 dropped 0.47 percent, the Spanish Ibex Index fell 0.55 percent, while Italy's FTSE MIB Index declined 1.21 percent. Meanwhile the German DAX declined 0.74 percent, and the French CAC 40 slipped 0.47 percent while U.K. shares fell 0.50 percent.
Economics
The University of Michigan's consumer sentiment index dropped to 95.3 in August, versus 97.9 in July. However, economists were expecting a reading of 98.1.
The leading economic index increased 0.6 percent in July, versus a 0.5 percent increase in June.
The Baker Hughes North American rig count report for the recent week will be released at 1:00 p.m. ET.
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Equities Trading UP Tel-Instrument Electronics Corp. (NYSE: TIK ) shares shot up 94 percent to $5.05 after the company reported a multi-million dollar order from the German government. Following the market opening Friday, the Dow traded down 0.06 percent to 25,543.20 while the NASDAQ declined 0.54 percent to 7,764.69. Meanwhile, top gainers in the sector included CV Sciences, Inc. (OTC: CVSI ) up 10 percent, and Coca-Cola FEMSA, S.A.B.
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Top Headline Deere & Company (NYSE: DE ) reported weaker-than-expected earnings for its third quarter. The leading economic index increased 0.6 percent in July, versus a 0.5 percent increase in June. Following the market opening Friday, the Dow traded down 0.06 percent to 25,543.20 while the NASDAQ declined 0.54 percent to 7,764.69.
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Following the market opening Friday, the Dow traded down 0.06 percent to 25,543.20 while the NASDAQ declined 0.54 percent to 7,764.69. The eurozone's STOXX 600 dropped 0.47 percent, the Spanish Ibex Index fell 0.55 percent, while Italy's FTSE MIB Index declined 1.21 percent. Meanwhile the German DAX declined 0.74 percent, and the French CAC 40 slipped 0.47 percent while U.K. shares fell 0.50 percent.
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Following the market opening Friday, the Dow traded down 0.06 percent to 25,543.20 while the NASDAQ declined 0.54 percent to 7,764.69. Meanwhile, top gainers in the sector included CV Sciences, Inc. (OTC: CVSI ) up 10 percent, and Coca-Cola FEMSA, S.A.B. de C.V. (NYSE: KOF ) up 4 percent.
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2018-08-17 00:00:00 UTC
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Deere (DE) Q3 Earnings Miss, Revenues Surpass Estimates
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https://www.nasdaq.com/articles/deere-de-q3-earnings-miss-revenues-surpass-estimates-2018-08-17
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Deere & CompanyDE reported third-quarter fiscal 2018 (ended Jul 29, 2018) adjusted earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 by a margin of 6% due to higher raw material and freight costs. Deere's shares lost around 4.5% in pre-market trading following the release.
Including tax adjustments related to the tax reform, the company posted earnings of $2.78 per share compared with the year-ago quarter's figure of $1.97 per share. Third-quarter performance benefited from favorable market conditions and positive customer response to the company's product lineup with advanced technology and product features. Further, cost management and pricing actions to counter cost pressures for raw materials and freight aided results.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $9.3 billion, surging 36% year over year. Revenues came ahead of the Zacks Consensus Estimate of $9.2 billion.
The acquisition of the Wirtgen Group in December 2017 added 17% to net sales in the fiscal third quarter. Sales were dented by an unfavorable currency-translation impact of 1%. Region wise, equipment net sales increased 29% in the United States and Canada, and 45% in the rest of the world. Total net sales (including financial services and others) came in at $10.3 billion, up 32% year over year.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote
Operational Update
Cost of sales in the quarter increased 36% year over year to $7.2 billion. Gross profit in the reported quarter came in at $3.2 billion, advancing 23% year over year. Selling, administrative and general expenses flared up 14% to $9139 million. Equipment operations reported operating profit of $1.087 billion for the quarter compared with $804 million in the prior-year quarter.
The Wirtgen acquisition contributed $88 million to the quarter under review. Excluding Wirtgen results, the improvement fin operating profit was driven by higher shipment volumes, lower warranty costs, and price realization, partially offset by higher production costs and research and development expenses. Total operating profit (including financial services) increased to $1.3 billion from $1.0 billion reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales were up 18% year over year to $6.3 billion, primarily driven by higher shipment volumes, price realization offset by an unfavorable currency-translation impact. Operating profit at the segment climbed 16% year over year to $806 million, driven by higher shipment volumes, lower warranty-related expenses and price realization, somewhat negated by higher production costs and research and development expenses.
Construction & Forestry sales increased twofold to $3 billion from the prior-year quarter, aided by the Wirtgen acquisition. This segment reported operating profit of $281 million, up a whopping 153% year over year. The Wirtgen acquisition contributed operating profit of $88 million for the quarter. Excluding its impact, higher shipment volumes and lower warranty expenses, partially offset by higher production costs and sales-incentive expenses led to the overall improvement.
Net revenues at Deere's Financial Services division totaled $830 million in the reported quarter, up 12% year over year. The segment's operating profit came in at $196 million, a dip of 1% year over year. Net income at the segment was $151 million, up from $131 million in the prior-year quarter.
Financial Update
Deere reported cash and cash equivalents of $3.9 billion at the end of the fiscal third quarter compared with $6.5 billion at the end of the prior-year quarter. Cash used in operations was $675 million during the nine-month period ended Jul 29, 2018, compared with cash inflow of $729 million in the comparable period last year. At the end of the reported quarter, long-term borrowing totaled $26.8 billion, up from $23.7 billion at the end of the year-ago quarter.
Looking Ahead
Deere maintained its total equipment sales growth outlook for fiscal 2018 to around 30%, year over year. The company expects sales to be up 21% in fourth-quarter fiscal 2018 compared with the year-ago period. Deere stated that the Wirtgen acquisition will contribute about 12% to net sales for both the fiscal and fourth quarter. The forecast factors is an unfavorable impact of 3% for foreign-currency translation for the fiscal fourth quarter.
For fiscal 2018, Deere anticipates net sales to increase about 26% year over year and projects adjusted net income of about $3.1 billion, which excludes the provisional income-tax adjustments associated with tax reform.
Growth in global agricultural and construction equipment markets will drive Deere. The company noted that agricultural equipment is being buoyed by replacement demand despite tensions over global trade and other geopolitical issues.
Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 15% in fiscal 2018. Industry sales for agricultural equipment in the United States and Canada are estimated to be up about 10% for the fiscal, aided by elevated demand for large equipment.
In the EU28 region, sales are projected to be up about 5-10% backed by improving conditions in the dairy and livestock sectors as well as and positive arable-farming conditions in certain key markets. In South America, industry sales of tractors and combines are estimated to be flat to up 5%, aided by strength in Brazil. Sales in Asian is expected to remain flat from the year-ago levels. Industry sales of turf and utility equipment in the United States and Canada are expected to be flat to up 5% for the fiscal.
The company projects global sales for Construction & Forestry equipment to soar 81% for fiscal 2018. The Wirtgen acquisition is likely to add about 55% to the sales for the segment. The outlook is based on global economic growth, higher housing starts in the United States, and an improved oil and gas sector. In forestry, global industry sales are projected to be up about 10%.
The outlook for adjusted net income from Financial Services has been set at $583 million for fiscal 2018.
Share Price Performance
Deere has outperformed the industry with respect to price performance, over the past year. While the stock has appreciated 11%, the industry recorded growth of 6%.
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include W.W. Grainger, Inc. GWW , Actuant Corporation ATU and Atkore International Group Inc. ATKR . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Grainger has a long-term earnings growth rate of 12.5%. Its shares have appreciated 119%, over the past year.
Actuant has a long-term earnings growth rate of 15.6%. The company's shares have gained 24% in a year's time.
Atkore International has a long-term earnings growth rate of 10%. The stock has rallied 63% in a year's time.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Actuant Corporation (ATU): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE reported third-quarter fiscal 2018 (ended Jul 29, 2018) adjusted earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 by a margin of 6% due to higher raw material and freight costs. Deere's shares lost around 4.5% in pre-market trading following the release. Further, cost management and pricing actions to counter cost pressures for raw materials and freight aided results.
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Excluding Wirtgen results, the improvement fin operating profit was driven by higher shipment volumes, lower warranty costs, and price realization, partially offset by higher production costs and research and development expenses. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Actuant Corporation (ATU): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE reported third-quarter fiscal 2018 (ended Jul 29, 2018) adjusted earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 by a margin of 6% due to higher raw material and freight costs.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Operational Update Cost of sales in the quarter increased 36% year over year to $7.2 billion. For fiscal 2018, Deere anticipates net sales to increase about 26% year over year and projects adjusted net income of about $3.1 billion, which excludes the provisional income-tax adjustments associated with tax reform. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Actuant Corporation (ATU): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Operational Update Cost of sales in the quarter increased 36% year over year to $7.2 billion. Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 15% in fiscal 2018. Deere & CompanyDE reported third-quarter fiscal 2018 (ended Jul 29, 2018) adjusted earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 by a margin of 6% due to higher raw material and freight costs.
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2018-08-17 00:00:00 UTC
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Morning Movers: Dow Drops 68 Points as All-Clear Signal Not So Clear
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https://www.nasdaq.com/articles/morning-movers-dow-drops-68-points-all-clear-signal-not-so-clear-2018-08-17
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Giving Back. The Dow was slipping Friday morning, one day after gaining nearly 400 points. Turkey's currency was dropping once again, while Deere, a Dow component, was trading lower after its earnings disappointed. And we'd be remiss if we didn't mention President Donald Trump's tweet about asking the SEC to look at getting rid of quarterly reporting in favor of a six-monthly system. In today's Morning Movers, we...
Karl Magnuson
•...discuss why Turkey's troubles might not be over; •......review Deere's (DE) earnings disappointment; •...and explain why Dean Foods (DF) is tanking.
The market appears to be wondering if yesterday's big gains were too good to be true.
The S&P 500 has declined 0.3%, while the Dow Jones Industrial Average has fallen 68 points, or 0.3%. The Nasdaq Composite has dropped 0.4%.
There's no real reason for the markets drop today, though that's never stopped it from doing what it wants. Yes, the lira is sliding once again, proving that Turkey's crisis is not yet over. "[It's] very important to point out that Turkey did not pledge to do the one thing that would truly help calm markets-raise interest rates," writes The Seven's Report's Tom Essaye. "As such, I do not think we can, at this point, call an'All Clear' on Turkey."
And while the rise and fall of the lira might seem unimportant given Turkey's relatively small size, it has a real-world impact. EPFR's Cameron Brandt notes that Turkey's problems caused money to leave Europe bond and stock funds, while Brazil-focsued stock funds saw their largest outflows in more than three years. "Turkey sneezes, Brazil and Europe Funds catch a chill," Brandt writes.
Ultimately though, it could be more about China than Turkey, explains Tigress Financial's Ivan Feinseth. He calls the selloff on Turkey "an excuse to shake stocks out of weak hands," while arguing that " any positive momentum in trade negotiations will drive stocks higher. A resolution to the current U.S.-China trade dispute will be a powerful catalyst that will drive stocks to new all-time highs for a number of months."
First that has to happen.
Applied Materials (AMAT) is down 4.1% to $45.46 after reporting third-quarter earnings. The semiconductor equipment firm earned $1.20 a share on revenue of $4.47 billion. Analysts were looking for earnings of $1.16 on revenue of $4.42 billion. For the fourth quarter it sees EPS of 92 cents to $1 on revenue of $3.85 billion to $4.15 billion. Consensus calls for earnings of $1.16 on revenue of $4.45 billion.
Getty Images
Deere (DE) is down 3.7% to $123.22 after reporting third-quarter earnings. The industrial giant earned $2.59 a share on revenue of $9.29 billion. Analysts were looking for earnings of $2.75 on revenue of $9.18 billion. For the fourth quarter, it sees revenues of $8.58 billion, compared with the $8.82 billion consensus.
Dean Foods (DF) has slumped 8.9% to $7.94 after getting cut to Underweight from Neutral at JPMorgan.
DSW (DSW) has dropped 5% to $26.45 after getting downgraded to Negative from Neutral at Susquehanna.
Enbridge (ENB) is up 1% to $35.23 after Bank of America Merrill Lynch upgraded it to Buy.
Nordstrom (JWN) is up 8.1% to $56.50 after reporting second-quarter earnings. The department store earned 95 cents a share on revenue of $3.98 billion. Analysts were looking for earnings of 84 cents on revenue of $3.96 billion. For the full year, it expects EPS of $3.50 to $3.65, on revenue of $15.4 billion to $15.5 billion. Consensus calls for earnings of $3.46 on revenue of $15.78 billion.
Nvidia (NVDA) is down 3.1% to $249.51 after reporting second-quarter earnings. The chip maker earned $1.94 a share on revenue of $3.12 billion. Analysts were looking for earnings of $1.84 on revenue of $3.11 billion. For the third quarter, it sees EPS of $1.85 to $2.02, on revenue of $3.19 billion to $3.32 billion. Consensus calls for earnings of $1.99 on revenue of $3.34 billion. - Ben Levisohn
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And we'd be remiss if we didn't mention President Donald Trump's tweet about asking the SEC to look at getting rid of quarterly reporting in favor of a six-monthly system. In today's Morning Movers, we... Karl Magnuson •...discuss why Turkey's troubles might not be over; •......review Deere's (DE) earnings disappointment; •...and explain why Dean Foods (DF) is tanking. Turkey's currency was dropping once again, while Deere, a Dow component, was trading lower after its earnings disappointed.
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In today's Morning Movers, we... Karl Magnuson •...discuss why Turkey's troubles might not be over; •......review Deere's (DE) earnings disappointment; •...and explain why Dean Foods (DF) is tanking. Turkey's currency was dropping once again, while Deere, a Dow component, was trading lower after its earnings disappointed. And we'd be remiss if we didn't mention President Donald Trump's tweet about asking the SEC to look at getting rid of quarterly reporting in favor of a six-monthly system.
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In today's Morning Movers, we... Karl Magnuson •...discuss why Turkey's troubles might not be over; •......review Deere's (DE) earnings disappointment; •...and explain why Dean Foods (DF) is tanking. Turkey's currency was dropping once again, while Deere, a Dow component, was trading lower after its earnings disappointed. And we'd be remiss if we didn't mention President Donald Trump's tweet about asking the SEC to look at getting rid of quarterly reporting in favor of a six-monthly system.
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In today's Morning Movers, we... Karl Magnuson •...discuss why Turkey's troubles might not be over; •......review Deere's (DE) earnings disappointment; •...and explain why Dean Foods (DF) is tanking. Turkey's currency was dropping once again, while Deere, a Dow component, was trading lower after its earnings disappointed. And we'd be remiss if we didn't mention President Donald Trump's tweet about asking the SEC to look at getting rid of quarterly reporting in favor of a six-monthly system.
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2018-08-17 00:00:00 UTC
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Deere (DE) Lags Q3 Earnings Estimates
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https://www.nasdaq.com/articles/deere-de-lags-q3-earnings-estimates-2018-08-17
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Deere (DE) came out with quarterly earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 per share. This compares to earnings of $1.97 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -6.50%. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $3.33 per share when it actually produced earnings of $3.14, delivering a surprise of -5.71%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $9.29 billion for the quarter ended July 2018, surpassing the Zacks Consensus Estimate by 1.28%. This compares to year-ago revenues of $6.83 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Deere shares have lost about 12.2% since the beginning of the year versus the S&P 500's gain of 6.3%.
What's Next for Deere?
While Deere has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Deere was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.38 on $8.75 billion in revenues for the coming quarter and $9.69 on $33.74 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Farm Equipment is currently in the bottom 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Deere (DE) came out with quarterly earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 per share. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $3.33 per share when it actually produced earnings of $3.14, delivering a surprise of -5.71%.
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Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $9.29 billion for the quarter ended July 2018, surpassing the Zacks Consensus Estimate by 1.28%. Deere (DE) came out with quarterly earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 per share. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $3.33 per share when it actually produced earnings of $3.14, delivering a surprise of -5.71%.
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Deere (DE) came out with quarterly earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 per share. Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $9.29 billion for the quarter ended July 2018, surpassing the Zacks Consensus Estimate by 1.28%. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Deere (DE) came out with quarterly earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.77 per share. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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af3fc319-a797-48f5-834c-0c2cb99c08fd
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721963.0
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2018-08-16 00:00:00 UTC
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How Will Caterpillar Perform In Second Half Of 2018 After Strong Q2 Growth?
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DE
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https://www.nasdaq.com/articles/how-will-caterpillar-perform-second-half-2018-after-strong-q2-growth-2018-08-16
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nan
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nan
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Caterpillar ( CAT ) reported a solid 24% increase in revenues to just over $14 billion in Q2. Much of the revenue growth came from its Construction Industries segment, as a result of increased construction activities and infrastructure development in China and North America. Construction Industries revenue was up 24% year-on-year to $6.2 billion, forming nearly 47% of the company's net revenues. In addition, Energy & Transportation segment revenue grew 20% year-on-year to $5.7 billion. Caterpillar nearly doubled its adjusted earnings to $2.97, as a result of higher sales volume, lower tax rate, and cost efficiency. Further, management raised its full year guidance based on continued improvement in most of the end markets in first half of 2018 - due to robust order rates and backlogs. We believe the recently imposed tariffs will have a relatively minimal impact in 2018, and the strong order backlog in most end markets should drive the company's full year results. However, headwinds in the construction industry coupled with the ongoing tariff war should slightly dampen the medium term outlook. Below, we provide a brief overview of the company's results and what lies ahead.
We have updated our model - cutting our price estimate for Caterpillar slightly to $168, which is still above the market price, based on the expected performance of the industry. Our interactive dashboard analysis on Caterpillar's Performance In Second Half Of 2018 details our expectations for the second half of 2018. You can modify the different driver assumptions, and gauge their impact on the company's earnings and valuation.
Based on the recent results and market trends, we have revised our forecasts for Caterpillar for the full year. We forecast Construction Industries revenues to be up slightly over 19% to almost $23 billion for the year. Similarly, Energy & Transportation revenues are forecast to increase around 18% to just under $19 billion. The strong growth should be driven by broad-based improvement in most end markets as a result of healthy order rates and backlogs.
Construction Industries holds substantial growth potential for Caterpillar, as a result of the strong demand for its products across the Asia Pacific, North America, and EMEA markets, coupled with significant investments in nonresidential construction, infrastructure, and oil & gas related projects. Growing affluence and population, together with improved construction activities in developing markets - such as China and India - should drive spending. In addition, the increased construction activity in North America should further boost segment revenue.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Further, management raised its full year guidance based on continued improvement in most of the end markets in first half of 2018 - due to robust order rates and backlogs. We believe the recently imposed tariffs will have a relatively minimal impact in 2018, and the strong order backlog in most end markets should drive the company's full year results. Much of the revenue growth came from its Construction Industries segment, as a result of increased construction activities and infrastructure development in China and North America.
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Much of the revenue growth came from its Construction Industries segment, as a result of increased construction activities and infrastructure development in China and North America. We believe the recently imposed tariffs will have a relatively minimal impact in 2018, and the strong order backlog in most end markets should drive the company's full year results. Further, management raised its full year guidance based on continued improvement in most of the end markets in first half of 2018 - due to robust order rates and backlogs.
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Much of the revenue growth came from its Construction Industries segment, as a result of increased construction activities and infrastructure development in China and North America. Construction Industries holds substantial growth potential for Caterpillar, as a result of the strong demand for its products across the Asia Pacific, North America, and EMEA markets, coupled with significant investments in nonresidential construction, infrastructure, and oil & gas related projects. Further, management raised its full year guidance based on continued improvement in most of the end markets in first half of 2018 - due to robust order rates and backlogs.
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Much of the revenue growth came from its Construction Industries segment, as a result of increased construction activities and infrastructure development in China and North America. We believe the recently imposed tariffs will have a relatively minimal impact in 2018, and the strong order backlog in most end markets should drive the company's full year results. Further, management raised its full year guidance based on continued improvement in most of the end markets in first half of 2018 - due to robust order rates and backlogs.
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e609eafd-3c5d-4e9d-afb9-fbbe5a1511c7
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721964.0
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2018-08-16 00:00:00 UTC
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Pre-Market Earnings Report for August 17, 2018 : DE, GOGL, YTRA
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-august-17-2018-de-gogl-ytra-2018-08-16
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nan
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nan
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The following companies are expected to report earnings prior to market open on 08/17/2018. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending July 31, 2018. The farm machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.77. This value represents a 40.61% increase compared to the same quarter last year. DE missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -5.71%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.02 vs. an industry ratio of 18.70.
Golden Ocean Group Limited ( GOGL ) is reporting for the quarter ending June 30, 2018. The shipping company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.03. This value represents a 130.00% increase compared to the same quarter last year. In the past year GOGL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 300%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for GOGL is 27.19 vs. an industry ratio of 16.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Yatra Online, Inc. ( YTRA ) is reporting for the quarter ending June 30, 2018. The internet services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.31. This value represents a 3.33% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for YTRA is -6.30 vs. an industry ratio of -7.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company ( DE ) is reporting for the quarter ending July 31, 2018. DE missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -5.71%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.02 vs. an industry ratio of 18.70.
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Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.02 vs. an industry ratio of 18.70. Deere & Company ( DE ) is reporting for the quarter ending July 31, 2018. DE missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -5.71%.
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Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.02 vs. an industry ratio of 18.70. Deere & Company ( DE ) is reporting for the quarter ending July 31, 2018. DE missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -5.71%.
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Deere & Company ( DE ) is reporting for the quarter ending July 31, 2018. DE missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -5.71%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 14.02 vs. an industry ratio of 18.70.
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2c60bf72-6f22-4318-9a5d-188e4deafcdf
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721965.0
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2018-08-16 00:00:00 UTC
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Notable Thursday Option Activity: MO, BMRN, DE
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DE
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https://www.nasdaq.com/articles/notable-thursday-option-activity-mo-bmrn-de-2018-08-16
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Altria Group Inc (Symbol: MO), where a total volume of 86,179 contracts has been traded thus far today, a contract volume which is representative of approximately 8.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 121.9% of MO's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $60 strike put option expiring December 21, 2018 , with 15,339 contracts trading so far today, representing approximately 1.5 million underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $60 strike highlighted in orange:
BioMarin Pharmaceutical Inc. (Symbol: BMRN) saw options trading volume of 11,613 contracts, representing approximately 1.2 million underlying shares or approximately 100.5% of BMRN's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $100 strike put option expiring September 21, 2018 , with 5,120 contracts trading so far today, representing approximately 512,000 underlying shares of BMRN. Below is a chart showing BMRN's trailing twelve month trading history, with the $100 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 26,110 contracts, representing approximately 2.6 million underlying shares or approximately 93.9% of DE's average daily trading volume over the past month, of 2.8 million shares. Particularly high volume was seen for the $135 strike call option expiring September 21, 2018 , with 1,606 contracts trading so far today, representing approximately 160,600 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $135 strike highlighted in orange:
For the various different available expirations for MO options , BMRN options , or DE options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $60 strike put option expiring December 21, 2018 , with 15,339 contracts trading so far today, representing approximately 1.5 million underlying shares of MO. Especially high volume was seen for the $100 strike put option expiring September 21, 2018 , with 5,120 contracts trading so far today, representing approximately 512,000 underlying shares of BMRN. Particularly high volume was seen for the $135 strike call option expiring September 21, 2018 , with 1,606 contracts trading so far today, representing approximately 160,600 underlying shares of DE.
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Below is a chart showing MO's trailing twelve month trading history, with the $60 strike highlighted in orange: BioMarin Pharmaceutical Inc. (Symbol: BMRN) saw options trading volume of 11,613 contracts, representing approximately 1.2 million underlying shares or approximately 100.5% of BMRN's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $100 strike put option expiring September 21, 2018 , with 5,120 contracts trading so far today, representing approximately 512,000 underlying shares of BMRN. Below is a chart showing BMRN's trailing twelve month trading history, with the $100 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 26,110 contracts, representing approximately 2.6 million underlying shares or approximately 93.9% of DE's average daily trading volume over the past month, of 2.8 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Altria Group Inc (Symbol: MO), where a total volume of 86,179 contracts has been traded thus far today, a contract volume which is representative of approximately 8.6 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing MO's trailing twelve month trading history, with the $60 strike highlighted in orange: BioMarin Pharmaceutical Inc. (Symbol: BMRN) saw options trading volume of 11,613 contracts, representing approximately 1.2 million underlying shares or approximately 100.5% of BMRN's average daily trading volume over the past month, of 1.2 million shares. Below is a chart showing BMRN's trailing twelve month trading history, with the $100 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 26,110 contracts, representing approximately 2.6 million underlying shares or approximately 93.9% of DE's average daily trading volume over the past month, of 2.8 million shares.
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Below is a chart showing MO's trailing twelve month trading history, with the $60 strike highlighted in orange: BioMarin Pharmaceutical Inc. (Symbol: BMRN) saw options trading volume of 11,613 contracts, representing approximately 1.2 million underlying shares or approximately 100.5% of BMRN's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $100 strike put option expiring September 21, 2018 , with 5,120 contracts trading so far today, representing approximately 512,000 underlying shares of BMRN. Below is a chart showing BMRN's trailing twelve month trading history, with the $100 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 26,110 contracts, representing approximately 2.6 million underlying shares or approximately 93.9% of DE's average daily trading volume over the past month, of 2.8 million shares.
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9b397018-e969-41e4-b601-9fb40bd138c7
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721966.0
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2018-08-15 00:00:00 UTC
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Should You Buy Deere (DE) Stock Ahead of Earnings?
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DE
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https://www.nasdaq.com/articles/should-you-buy-deere-de-stock-ahead-earnings-2018-08-15
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nan
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nan
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Shares of Deere & Company DE sunk over 2% through early afternoon trading Wednesday in a sign that investors might be nervous about the firm ahead of its quarterly earnings release, which is scheduled for Friday. Unfortunately, Deere's dip is part of a much larger decline over the last six months. Yet, Deere's top and bottom lines are projected to soar this quarter.
Overview
Deere did report a GAAP net loss of $535.1 million in its first fiscal quarter of 2018, which the company said was mainly due to the massive U.S. tax reforms. And the agricultural and construction equipment powerhouse has been negatively impacted by the ongoing trade disputes between the U.S. and China, as investors worry the company's costs could climb.
However, the firm reported net income of $1.21 billion, with revenues up 29%, in its second quarter.
More recently, the company's upbeat outlook is based on higher housing starts in the U.S. and an improved oil and gas sector. Deere also noted that it expects its June 2017 acquisition of the German-headquartered manufacturer of road construction equipment, Wirtgen Group, to have a positive impact on its sales. Furthermore, the economic environment for the construction, forestry, and road building industries look strong .
Investors should also note that Caterpillar CAT raised its 2018 guidance despite growing concerns about economic headwinds.
Stock Price Movement
Shares of DE are up roughly 44% over the last three years, which outpaces the S&P 500's 35% climb. This movement also tracks its industry's climb. Over the last 24 months, Deere stock has soared over 73% against the S&P's 31% jump. However, shares of DE have performed much worse as we narrow the focus.
DE stock is up just 7% over the last year, which lags the S&P's 15% climb. Much worse still, shares of Deere have plummeted by more than 13% since the start of the year.
Valuation
Moving on, DE's recent downturn has not only made its stock price look much cheaper-resting nearly $40 below its 52-week high of $175.26 per share-but also made its valuation picture look much better. Deere is currently trading at 12.5X forward 12-month Zacks Consensus EPS estimates, which is just above its year-long low of 12.3X that it reached in late July.
DE stock is trading at a huge discount to its year-long high of 20.8X and well below its 17X median. Deere is also trading below its industry's 15.2X average-which includes Terex TEX and Manitowoc MTW -and the S&P's 17.3X. Plus, Deere is currently trading right at its lowest earning multiple over a three-year stretch. Therefore, investors should be able to say with confidence that Deere stock presents amazing value at the moment, especially considering its strong outlook.
Outlook
Deere is projected to see its quarterly revenues soar by over 34% to hit $9.17 billion, based on our current Zacks Consensus Estimate. Looking a bit further down the road, the company is expected to post full-year revenues of $33.74 billion, which would mark a more than 30% climb from a year ago.
Meanwhile, DE's adjusted quarterly earnings are projected to soar by 40.61% to $2.77 per share, while its fiscal year earnings are expected to skyrocket 45%.
Bottom Line
Deere's EPS projection has climbed by $0.19 over the duration of the quarter, which means that analysts' earnings sentiment has gone way up. The company also has a strong management team that has seen it top our quarterly earnings estimates nearly every quarter over the last five-plus years, with last quarter the lone outlier.
Deere is currently a Zacks Rank #3 (Hold) and sports a "B" grade for Value and an "A" for Momentum in our Style Scores system. With all that said, investors might want to consider buying DE stock ahead of earnings.
Deere is scheduled to report its Q3 financial results before the opening bell on Friday, August 17.
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Deere & Company DE sunk over 2% through early afternoon trading Wednesday in a sign that investors might be nervous about the firm ahead of its quarterly earnings release, which is scheduled for Friday. And the agricultural and construction equipment powerhouse has been negatively impacted by the ongoing trade disputes between the U.S. and China, as investors worry the company's costs could climb. Deere also noted that it expects its June 2017 acquisition of the German-headquartered manufacturer of road construction equipment, Wirtgen Group, to have a positive impact on its sales.
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Meanwhile, DE's adjusted quarterly earnings are projected to soar by 40.61% to $2.77 per share, while its fiscal year earnings are expected to skyrocket 45%. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Deere & Company DE sunk over 2% through early afternoon trading Wednesday in a sign that investors might be nervous about the firm ahead of its quarterly earnings release, which is scheduled for Friday.
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Shares of Deere & Company DE sunk over 2% through early afternoon trading Wednesday in a sign that investors might be nervous about the firm ahead of its quarterly earnings release, which is scheduled for Friday. Meanwhile, DE's adjusted quarterly earnings are projected to soar by 40.61% to $2.77 per share, while its fiscal year earnings are expected to skyrocket 45%. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Deere & Company DE sunk over 2% through early afternoon trading Wednesday in a sign that investors might be nervous about the firm ahead of its quarterly earnings release, which is scheduled for Friday. Outlook Deere is projected to see its quarterly revenues soar by over 34% to hit $9.17 billion, based on our current Zacks Consensus Estimate. Meanwhile, DE's adjusted quarterly earnings are projected to soar by 40.61% to $2.77 per share, while its fiscal year earnings are expected to skyrocket 45%.
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fd7eb4c5-68dd-4985-9218-0d415abcb050
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721967.0
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2018-08-14 00:00:00 UTC
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Deere (DE) to Report Q3 Earnings: What's in the Offing?
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DE
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https://www.nasdaq.com/articles/deere-de-to-report-q3-earnings%3A-whats-in-the-offing-2018-08-14
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nan
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nan
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Deere & CompanyDE is scheduled to report third-quarter fiscal 2018 results on Aug 17, before the market opens.
In the last reported quarter, Deere posted earnings of $3.14 per share, which missed the Zacks Consensus Estimate by around 6%. The company delivered an average positive earnings surprise of 4.21% over the trailing four quarters.
Let's see how things are shaping up for this announcement.
Deere & Company Price and EPS Surprise
Deere & Company Price and EPS Surprise | Deere & Company Quote
Key Factors to Consider
For the fiscal third quarter, Deere expects sales to be up around 35% year over year. The forecast includes a positive foreign-currency translation impact of about 1%. The Zacks Consensus Estimate for the to-be-reported quarter's sales is pegged at $9.17 billion, reflecting year-over-year growth of 34%. This upbeat projection reflects global economic growth, including higher housing starts in the United States, and an improved oil and gas sector.
In addition, Deere stated that the Wirtgen acquisition will contribute about 18% to net sales for the quarter to be reported. Moreover, economic environment for the construction, forestry and road building industries bodes well. It will spur demand for new and used equipment and in turn, support the sales outlook of the company for the fiscal third quarter.
Our Consensus Estimates indicate that net sales of Deere's Agriculture and Turf equipment segment will reach $6.13 billion in the quarter to be reported, rising around 15% year over year. The Zacks Consensus Estimate for Construction & Forestry equipment sales is pegged at $3.07 billion for the quarter, reflecting year-over-year surge of 106%. The estimate for the Financial Services segment's sales is $831 million, reflecting year-over-year increase of 12%.
Notably, the Zacks Consensus Estimate for earnings per share is pegged at $2.77 for the quarter, indicating year-over-year growth of 41%. Improved operational performance resulting from disciplined cost management, and continued investment in innovative technology and solutions will drive the company's performance.
However, Deere's earnings will be dampened by elevated expenses. The company believes an unfavorable product mix, higher overhead spending and elevated incentive compensation will inflate the cost of sales. Furthermore, rising raw material prices, higher freight cost and emissions costs remain headwinds. Additionally, weakness in Deere's agriculture business and drought conditions in Argentina are expected to thwart its performance.
Earnings Whispers
Our proven model does not conclusively show that Deere is likely to beat on earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate Estimate of $2.74 and the Zacks Consensus Estimate of $2.76, is -0.70%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Deere currently carries a Zacks Rank of 3. While this increases the predictive power of ESP, we also need to have a positive ESP to be confident about an earnings surprise.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Share Price Performance
Deere's shares have outperformed the industry it belongs to over the past year. The stock has gained 7% compared to 3% growth recorded by the industry.
Stocks Worth a Look
Here are a few stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
American Eagle Outfitters, Inc. AEO , with an Earnings ESP of +2.09% and a Zacks Rank #2. Its shares have appreciated 149% in a year's time. You can see the complete list of today's Zacks #1 Rank stocks here .
Best Buy Co., Inc. BBY , with an Earnings ESP of +0.55% and a Zacks Rank #2. The company's shares have gained 27% during the past year.
Catalent, Inc. CTLT , with an Earnings ESP of +1.92% and a Zacks Rank #3. The company's shares have been up 16% over the past year.
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Deere & Company (DE): Free Stock Analysis Report
Catalent, Inc. (CTLT): Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE is scheduled to report third-quarter fiscal 2018 results on Aug 17, before the market opens. In the last reported quarter, Deere posted earnings of $3.14 per share, which missed the Zacks Consensus Estimate by around 6%. The company delivered an average positive earnings surprise of 4.21% over the trailing four quarters.
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Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Key Factors to Consider For the fiscal third quarter, Deere expects sales to be up around 35% year over year. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Catalent, Inc. (CTLT): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is scheduled to report third-quarter fiscal 2018 results on Aug 17, before the market opens.
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In the last reported quarter, Deere posted earnings of $3.14 per share, which missed the Zacks Consensus Estimate by around 6%. Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Key Factors to Consider For the fiscal third quarter, Deere expects sales to be up around 35% year over year. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Catalent, Inc. (CTLT): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report To read this article on Zacks.com click here.
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In the last reported quarter, Deere posted earnings of $3.14 per share, which missed the Zacks Consensus Estimate by around 6%. Our Consensus Estimates indicate that net sales of Deere's Agriculture and Turf equipment segment will reach $6.13 billion in the quarter to be reported, rising around 15% year over year. Share Price Performance Deere's shares have outperformed the industry it belongs to over the past year.
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7d8af682-5ba8-4660-863d-551254d32599
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721968.0
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2018-08-14 00:00:00 UTC
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The Top 5 Earnings Charts This Week
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DE
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https://www.nasdaq.com/articles/top-5-earnings-charts-week-2018-08-14
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nan
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nan
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Earnings season is winding down but there are still over 200 companies expected to report this week, including some of the "star" technology companies and retailers.
One of the tech companies has been among the hottest stocks on Wall Street the last two years, but shares have cooled a bit in 2018.
These 5 big cap companies also have strong earnings surprise beat records. It's not easy to beat nearly every quarter for years at a time. Can they do it again?
5 Big Cap Earnings Charts to Watch This Week
1. Cisco CSCO hasn't missed since 2015. It has a great earnings surprise track record. Shares are up 13.5% year-to-date, just barely outpacing the NASDAQ which is up 12.5% during that same period. Cisco is one of the few value big cap technology stocks, with a forward P/E of just 15.
2. JD.com JD has missed two quarters in a row. Shares are down 22% year-to-date on worries about Chinese trade and tariff issues. Could this be a buying opportunity?
3. Applied Materials AMAT has beat every quarter since Zacks data began in 2015. That's an impressive record. The semiconductor industry has had a tough 2018. Applied Material shares are down 8.6% year-to-date. Will this report reassure investors?
4. Nvidia NVDA has only missed once since 2015. Shares have been soaring, gaining 318% over the last 2 years and another 30% in 2018. Every quarter I ask if it's priced for perfection, so I'll ask again. Will it beat expectations once again?
5. Deere & Company DE had a 5-year perfect earnings track record until last quarter when it suddenly missed. All good streaks come to an end at some point. Shares have retreated in 2018, falling 13%, on worries about the impact of the tariffs and trade war on business. Investors will want to tune into this conference call to get the latest update.
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
JD.com, Inc. (JD): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company DE had a 5-year perfect earnings track record until last quarter when it suddenly missed. Shares have retreated in 2018, falling 13%, on worries about the impact of the tariffs and trade war on business. Shares are down 22% year-to-date on worries about Chinese trade and tariff issues.
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Deere & Company DE had a 5-year perfect earnings track record until last quarter when it suddenly missed. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report JD.com, Inc. (JD): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Shares are down 22% year-to-date on worries about Chinese trade and tariff issues.
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Deere & Company DE had a 5-year perfect earnings track record until last quarter when it suddenly missed. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report JD.com, Inc. (JD): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Shares are down 22% year-to-date on worries about Chinese trade and tariff issues.
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Deere & Company DE had a 5-year perfect earnings track record until last quarter when it suddenly missed. Shares are down 22% year-to-date on worries about Chinese trade and tariff issues. Shares have retreated in 2018, falling 13%, on worries about the impact of the tariffs and trade war on business.
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eb38ff00-9e6f-4c77-ab6e-f9cdc268be8b
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721969.0
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2018-08-09 00:00:00 UTC
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Noteworthy Thursday Option Activity: DE, GM, WDC
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-de-gm-wdc-2018-08-09
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 14,210 contracts has been traded thus far today, a contract volume which is representative of approximately 1.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.4% of DE's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $135 strike put option expiring September 21, 2018 , with 1,110 contracts trading so far today, representing approximately 111,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $135 strike highlighted in orange:
General Motors Co (Symbol: GM) saw options trading volume of 48,738 contracts, representing approximately 4.9 million underlying shares or approximately 43.1% of GM's average daily trading volume over the past month, of 11.3 million shares. Particularly high volume was seen for the $40 strike call option expiring September 21, 2018 , with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of GM. Below is a chart showing GM's trailing twelve month trading history, with the $40 strike highlighted in orange:
And Western Digital Corp (Symbol: WDC) options are showing a volume of 16,305 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 41.3% of WDC's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $62.50 strike put option expiring September 21, 2018 , with 1,091 contracts trading so far today, representing approximately 109,100 underlying shares of WDC. Below is a chart showing WDC's trailing twelve month trading history, with the $62.50 strike highlighted in orange:
For the various different available expirations for DE options , GM options , or WDC options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $135 strike put option expiring September 21, 2018 , with 1,110 contracts trading so far today, representing approximately 111,000 underlying shares of DE. Particularly high volume was seen for the $40 strike call option expiring September 21, 2018 , with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of GM. Especially high volume was seen for the $62.50 strike put option expiring September 21, 2018 , with 1,091 contracts trading so far today, representing approximately 109,100 underlying shares of WDC.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 14,210 contracts has been traded thus far today, a contract volume which is representative of approximately 1.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $135 strike highlighted in orange: General Motors Co (Symbol: GM) saw options trading volume of 48,738 contracts, representing approximately 4.9 million underlying shares or approximately 43.1% of GM's average daily trading volume over the past month, of 11.3 million shares. Particularly high volume was seen for the $40 strike call option expiring September 21, 2018 , with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of GM.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 14,210 contracts has been traded thus far today, a contract volume which is representative of approximately 1.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $135 strike highlighted in orange: General Motors Co (Symbol: GM) saw options trading volume of 48,738 contracts, representing approximately 4.9 million underlying shares or approximately 43.1% of GM's average daily trading volume over the past month, of 11.3 million shares. Particularly high volume was seen for the $40 strike call option expiring September 21, 2018 , with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of GM.
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Below is a chart showing DE's trailing twelve month trading history, with the $135 strike highlighted in orange: General Motors Co (Symbol: GM) saw options trading volume of 48,738 contracts, representing approximately 4.9 million underlying shares or approximately 43.1% of GM's average daily trading volume over the past month, of 11.3 million shares. Particularly high volume was seen for the $40 strike call option expiring September 21, 2018 , with 12,723 contracts trading so far today, representing approximately 1.3 million underlying shares of GM. Especially high volume was seen for the $62.50 strike put option expiring September 21, 2018 , with 1,091 contracts trading so far today, representing approximately 109,100 underlying shares of WDC.
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44193bae-fa95-4732-81ed-f40f5edd9776
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721970.0
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2018-08-01 00:00:00 UTC
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Stock Market News For Aug 1, 2018
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DE
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https://www.nasdaq.com/articles/stock-market-news-for-aug-1-2018-2018-08-01
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nan
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nan
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Markets rebounded on Tuesday on reports that the United States and China are willing to start talks in an effort to resolve trade disputes. This saw industrial stocks rallying. Also, strong economic data reflected a rise in consumer spending, which gave a boost to investors' confidence. Both the Dow and S&P 500 posted their biggest monthly percentage gains since January.
The Dow Jones Industrial Average (DJI) gained 0.4%, to close at 25,414.78. The S&P 500 advanced 0.5% to close at 2,816.29. The Nasdaq Composite Index closed at 7, 671.79, jumping 0.6%. A total of 7.26 billion shares were traded on Tuesday, higher than the last 20-session average of 6.06 billion shares. Advancers outnumbered decliners on the NYSE by a 2.15-to-1 ratio. On Nasdaq, a 1.82-to-1 ratio favored advancing issues.
How did the Benchmark Perform?
The Dow added 107.95 points, with shares of Caterpillar CAT and Pfizer PFE gaining 2.9% and 3.5%, respectively. Shares of Boeing BA gained 1.5%. Boeing has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 advanced 13.69 points. The Industrial Select Sector SPDR (XLI) gained 2.2%, while Health Care Select Sector SPDR (XLV) jumped 1.1%. Eight of the 11 major S&P 500 sectors ended in positive territory. The tech heavy Nasdaq gained 41.78 points.
U.S. and China Seek to Resolve Trade Disputes
Markets have been bleeding for the last few days particularly because of tech stocks, which have failed to impress this earnings season. Moreover, trade war fears have kept markets volatile for the last few months. However, trade war fears somewhat eased on Tuesday on reports of the United States and China seeking to initiate talks to resolve the ongoing trade dispute.
This gave a boost to investors' confidence, which led to a rally in industrial stocks. Industrial stocks have been suffering since China imposed retaliatory tariffs on $34 billion on U.S. in early July. Apart from big exports like Boeing and Caterpillar, shares of Deere & Company DE also jumped. Deere's shares surged 4.8% on Tuesday.
Impressive Economic Data
Investors' confidence got a boost from the robust economic data released by the government on Tuesday. The Commerce Department said that consumer spending increased, which accounts for more than two-thirds of U.S. economic activity, increased 0.4% in June.
Moreover, the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased 0.1% in June. The Commerce Department had last week said that the U.S. economy grew 4.1% in the second quarter, the strongest performance in four years. This reflects that the U.S. economy is on steady growth path.
Monthly Roundup
The last trading day of the month saw all three major indexes closing in the green. However, it was a volatile month for markets. On Jul 6, the Trump administration imposed tariffs on $34 billion worth of Chinese goods. China immediately retaliated with tariffs on equal amount of U.S. imports. This took a toll on markets with industrial stocks suffering.
Trade war fears continued to grip markets. However, as the earnings season kicked off, markets saw a rally, on expectations of robust earnings. The rally somewhat came to a halt in the later part of the month as major tech companies failed to post impressive results.
Both the Dow and S&P 500 posted their biggest monthly percentage gains since January. The Dow gained 4.7% for the month, while the S&P 500 increased 3.6% in July. The Nasdaq also gained 2% in July, registering its fourth straight monthly gain.
Stocks That Made Headlines
C.H. Robinson Q2 Earnings & Revenues Top, Rise Y/Y
C.H. Robinson Worldwide, Inc. 's CHRW second-quarter 2018 earnings beat the Zacks Consensus Estimate. ( Read More )
Whiting Q2 Earnings In Line, Free Cash Flow Jumps
Whiting Petroleum WLL reported second-quarter adjusted net income which came in line with the Zacks Consensus Estimate.( Read More )
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C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
The Boeing Company (BA): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Whiting Petroleum Corporation (WLL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Markets rebounded on Tuesday on reports that the United States and China are willing to start talks in an effort to resolve trade disputes. U.S. and China Seek to Resolve Trade Disputes Markets have been bleeding for the last few days particularly because of tech stocks, which have failed to impress this earnings season. Moreover, the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased 0.1% in June.
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Also, strong economic data reflected a rise in consumer spending, which gave a boost to investors' confidence. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Whiting Petroleum Corporation (WLL): Free Stock Analysis Report To read this article on Zacks.com click here. Markets rebounded on Tuesday on reports that the United States and China are willing to start talks in an effort to resolve trade disputes.
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U.S. and China Seek to Resolve Trade Disputes Markets have been bleeding for the last few days particularly because of tech stocks, which have failed to impress this earnings season. However, trade war fears somewhat eased on Tuesday on reports of the United States and China seeking to initiate talks to resolve the ongoing trade dispute. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Whiting Petroleum Corporation (WLL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Monthly Roundup The last trading day of the month saw all three major indexes closing in the green. Markets rebounded on Tuesday on reports that the United States and China are willing to start talks in an effort to resolve trade disputes. Also, strong economic data reflected a rise in consumer spending, which gave a boost to investors' confidence.
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ea91e59e-dd8d-4fc7-b516-9a061d9313ad
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721971.0
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2018-07-30 00:00:00 UTC
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Why It’s Time to Dig Into Caterpillar Stock on This Earnings Report
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DE
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https://www.nasdaq.com/articles/why-its-time-dig-caterpillar-stock-earnings-report-2018-07-30
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Caterpillar (NYSE: CAT ) reported earnings this morning and investors liked what they saw. Management beat on both the top- and bottom-line expectations. More importantly, they raised the full-year outlook.
This is a nice change from the last earnings reaction where the CFO comments were misconstrued. So those fateful comments of "high watermark" were indeed fake news.
CAT stock came into the earnings report up 24% in one year, so the setup for a dip was real. But given the last dip on its last report investors were full of angst about a potential repeat.
Fundamentally CAT is set up to do well in this macro environment. We are still in a growth global cycle so there should still be plenty of business upside for a leading equipment provider like this.
Management is still successfully executing on plans and they rarely give Wall Street a fundamental reason to sell the stock. Three months ago, the CFO's words were twisted into a fear mongering selloff that took the whole sector down. And therein lied the opportunity.
4 REIT Sectors, 4 REITs to Buy for Long-Term Growth
Today's trade benefits from the stabilization cycle in CAT stock.
Since February, industrial stocks like Caterpillar, Deere (NYSE: DE ) and Boeing (NYSE: BA ) have been unstable due to the headlines around tariff wars with China. The businesses of these companies lie directly in the line of fire. They are easy targets for China's retaliations. In reality there are few alternatives for their products so for now, the fears have been overblown and dips have been opportunities for scalp trades.
Technically, there is upside potential in Caterpillar stock. If the bulls can stay above $145 then they would have the opportunity to fill the gaps all the way up to $155 and above.
Fundamentally, CAT stock is not expensive. It sells at an 18 trailing price-to-earnings ratio. So owning the shares at a discount from here is not likely to be a financial mistake.
This is important to my trade today because that would be the worst case scenario … that I own shares of CAT at my strike. I am confident that if that happens, I will manage out of my shares for a profit in the long run.
I could add a Sep debit call spread at $145-per-share to capture the upside but in order to keep my portfolio in balance, I want to simply bet on the downside support instead.
I have more faith in the proven support levels than betting on the upside hopium. This allows me to have better conviction to withstand dips from tariff headlines.
The experts on Wall Street agree with me since CAT stock is trading well below their average price range. Also, now that the uncertainty of earnings is out of the way, we may have a few upgrade headlines to fuel the next leg higher.
The Trade: Sell the CAT Jan 2019 $120 naked put and collect $2.70 to open. Here I have an 85% theoretical chance that I would retain maximum gains. But if the price falls below my strike, then I accrue losses below $117.30.
Those who want to mitigate the risk that comes with selling naked puts can sell spreads instead.
The Alternate Trade: Sell the CAT Jan 2019 $120/$115 credit put spread. The spread has the same odds, but would deliver 15% yield on risk. Neither trade requires a rally to profit.
Click here for more of my market thesis and get an ongoing free copy of my weekly newsletters.
Nicolas Chahine is the managing director of SellSpreads.com . As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on twitter and stocktwits .
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The post Why It's Time to Dig Into Caterpillar Stock on This Earnings Report appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I could add a Sep debit call spread at $145-per-share to capture the upside but in order to keep my portfolio in balance, I want to simply bet on the downside support instead. So those fateful comments of "high watermark" were indeed fake news. We are still in a growth global cycle so there should still be plenty of business upside for a leading equipment provider like this.
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The Trade: Sell the CAT Jan 2019 $120 naked put and collect $2.70 to open. The Alternate Trade: Sell the CAT Jan 2019 $120/$115 credit put spread. So those fateful comments of "high watermark" were indeed fake news.
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4 REIT Sectors, 4 REITs to Buy for Long-Term Growth Today's trade benefits from the stabilization cycle in CAT stock. So those fateful comments of "high watermark" were indeed fake news. We are still in a growth global cycle so there should still be plenty of business upside for a leading equipment provider like this.
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This is important to my trade today because that would be the worst case scenario … that I own shares of CAT at my strike. I am confident that if that happens, I will manage out of my shares for a profit in the long run. So those fateful comments of "high watermark" were indeed fake news.
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19f9fc58-6a33-45cb-aa15-aa522bd44a7d
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721972.0
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2018-07-27 00:00:00 UTC
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Can Construction Industry, Resource Industry, Energy & Transportation Drive Growth For Caterpillar In Q2?
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DE
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https://www.nasdaq.com/articles/can-construction-industry-resource-industry-energy-transportation-drive-growth-caterpillar
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nan
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nan
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Caterpillar ( CAT ) is scheduled to publish its Q2 2018 results on July 30. The company has reported strong revenue growth from the Construction, Resource, Energy & Transportation segments in recent years, driven by the improved outlook of the Chinese economy, and commodity prices, and recovery in oil prices . This trend continued in the first quarter of 2018, with net revenues growing at 31% year-on-year to just under $13 billion. Construction segment revenue was up 38% year-on-year to just under $5.7 billion, while Resource segment revenue grew 31% year-on-year to $2.3 billion. In addition, Energy & Transportation segment revenue jumped by 26% year-on-year to just over $5.2 billion. Increased construction activities and rail traffic, coupled with a recovery in commodity prices, should drive Q2 results. Below we take a look at what to expect when the company reports earnings.
We have a $174 price estimate for Caterpillar, which is higher than the current market price. The charts have been made using our new, interactive platform. You can click here to modify the different driver assumptions, and gauge their impact on the earnings and price per share metrics.
Factors That May Impact Future Performance
The Construction Industry segment enjoyed a strong Q1, as margins improved as a result of improved construction activities. Growing affluence and population, together with improved construction activities in developing markets - such as China and India - should drive spending. In addition, the increased construction activity in North America should further boost segment revenue.
The Resource Industry segment enjoyed a strong Q1, as margins improved as a result of increased demand for fossil fuels in emerging economies. This resulted in strong order activity - increased replacement demand and demand for new equipment. Recovery in commodity prices should drive increased end-user demand, and emerging economies will continue to drive the growth of the Mining Industry.
Rising population and prosperity of developing nations should likely lead to a rise in demand for energy. We expect this increased demand for energy to increase long-term demand for engines and turbines. Further, the increase in rail traffic in North America should boost transportation & power generation sales.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growing affluence and population, together with improved construction activities in developing markets - such as China and India - should drive spending. The Resource Industry segment enjoyed a strong Q1, as margins improved as a result of increased demand for fossil fuels in emerging economies. This trend continued in the first quarter of 2018, with net revenues growing at 31% year-on-year to just under $13 billion.
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The Resource Industry segment enjoyed a strong Q1, as margins improved as a result of increased demand for fossil fuels in emerging economies. This trend continued in the first quarter of 2018, with net revenues growing at 31% year-on-year to just under $13 billion. Construction segment revenue was up 38% year-on-year to just under $5.7 billion, while Resource segment revenue grew 31% year-on-year to $2.3 billion.
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Construction segment revenue was up 38% year-on-year to just under $5.7 billion, while Resource segment revenue grew 31% year-on-year to $2.3 billion. This trend continued in the first quarter of 2018, with net revenues growing at 31% year-on-year to just under $13 billion. The charts have been made using our new, interactive platform.
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This trend continued in the first quarter of 2018, with net revenues growing at 31% year-on-year to just under $13 billion. Construction segment revenue was up 38% year-on-year to just under $5.7 billion, while Resource segment revenue grew 31% year-on-year to $2.3 billion. The charts have been made using our new, interactive platform.
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68ba5cc7-1f36-4865-94f8-d36998aaa9b3
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721973.0
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2018-07-25 00:00:00 UTC
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Will $12B Emergency Relief Help U.S. Agricultural Sector?
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DE
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https://www.nasdaq.com/articles/will-12b-emergency-relief-help-us-agricultural-sector-2018-07-25
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nan
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nan
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On Jul 24, the Trump administration announced that it will provide $12 billion emergency aid to help American farmers who have been hurt by retaliatory tariffs. The announcement saw U.S. agricultural goods stocks jump on Tuesday. However, Trump's decision wasn't welcomed by farm-state Republicans, who argued that farmers want markets for their crops and not compensation for lost sales.
The trade war has been taking a toll on a number of U.S. goods with agricultural products being one of the biggest sufferers. The Agriculture Department's decision comes months before the November elections, as many political analysts are of the opinion that Republican senators in the rural belt of the United States could witness a backlash because of Trump's hard trade policies.
Temporary Relief for Farmers
The $12-billion emergency relief announced to assist American farmers is in line with $11 billion of loss suffered due to retaliatory tariffs. This surely will bring some relief to farmers. Agriculture Secretary Sonny Perdue said, "This is a short-term solution that will give President Trump and his administration the time to work on long-term trade deals."
Undoubtedly, the relief is temporary, as the decision comes months before the November election, which many believe could result in Republicans losing House and Senate seats in rural America, because of Trump's trade spat with trading partners.
Trump Draws Criticism
The rural belt in America particularly the Midwest was largely responsible for Trump's election victory in 2016. In fact, Trump defeated Hilary Clinton by more than 9 percentage points in Iowa, winning 51% votes. Trump in order to keep his election promise of helping U.S. farmers and the manufacturing sector slapped tariffs on China to protect domestic business.
However, the retaliatory tariffs by China saw a number of U.S. agriculture products like soybean, sorghum, a wide range of fruits, nuts and poultry products taking hit.
The $12-billion emergency relief now has drawn sharp criticism, including from some farm-state Republicans, who said that tariffs are simply taxes and that such an action would not be of much help, as farmers want markets for their crops. Understandably, the decision is being viewed as a short-term bailout while farmers are looking for long-term stability.
Agricultural Goods' Stocks Jump on Trump's Announcement
At a time when farmers continue to suffer because of the retaliatory tariffs, the $12-billion emergency relief has brought a temporary sigh of relief to agricultural stocks. The announcement gave a boost to the agricultural sector, which saw agriculture stocks jumping on Jul 24. Shares of CF Industries Holdings, Inc. CF , FMC Corporation FMC and AGCO Corporation AGCO jumped 0.6% each.
Shares of Caterpillar, Inc. CAT and Deere & Company DE rose 1.2% and 3.2%, respectively. Shares of The Mosaic Company MOS and Titan International, Inc. TWI gained 2.3%, and 0.9%, respectively, while Archer-Daniels-Midland Company (ADM) rose 0.2%. The Mosaic Company has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Trade Continues to Suffer
China's $34 billion retaliatory tariffs targets a number of agriculture goods produced in states that had supported Trump in the 2016 elections. The temporary relief is likely to benefit soybean producers the most. That said, soybean prices have fallen almost 20% since March owing to tariffs.
Apart from soybeans, commodity prices of sorghum, pork, corn, wheat and a wide range of fruits and nuts too have declined. The United States exported $138 billion in agriculture products last year. This includes $21.5 billion worth of soybeans, with China alone importing $12.3 billion of the crop. Understandably, the $12-billion relief is just a stopgap measure at a time when farmers are looking for long-term stability.
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FMC Corporation (FMC): Free Stock Analysis Report
CF Industries Holdings, Inc. (CF): Free Stock Analysis Report
The Mosaic Company (MOS): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Titan International, Inc. (TWI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Agriculture Department's decision comes months before the November elections, as many political analysts are of the opinion that Republican senators in the rural belt of the United States could witness a backlash because of Trump's hard trade policies. Trade Continues to Suffer China's $34 billion retaliatory tariffs targets a number of agriculture goods produced in states that had supported Trump in the 2016 elections. On Jul 24, the Trump administration announced that it will provide $12 billion emergency aid to help American farmers who have been hurt by retaliatory tariffs.
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Click to get this free report FMC Corporation (FMC): Free Stock Analysis Report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. On Jul 24, the Trump administration announced that it will provide $12 billion emergency aid to help American farmers who have been hurt by retaliatory tariffs. However, Trump's decision wasn't welcomed by farm-state Republicans, who argued that farmers want markets for their crops and not compensation for lost sales.
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Click to get this free report FMC Corporation (FMC): Free Stock Analysis Report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. On Jul 24, the Trump administration announced that it will provide $12 billion emergency aid to help American farmers who have been hurt by retaliatory tariffs. However, Trump's decision wasn't welcomed by farm-state Republicans, who argued that farmers want markets for their crops and not compensation for lost sales.
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Trade Continues to Suffer China's $34 billion retaliatory tariffs targets a number of agriculture goods produced in states that had supported Trump in the 2016 elections. Click to get this free report FMC Corporation (FMC): Free Stock Analysis Report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. On Jul 24, the Trump administration announced that it will provide $12 billion emergency aid to help American farmers who have been hurt by retaliatory tariffs.
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206f41ac-9852-4b97-87fa-49ec25143695
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721974.0
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2018-07-24 00:00:00 UTC
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3 Big Stock Charts for Tuesday: Host Hotels and Resorts, Deere & Company and Western Digital
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DE
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https://www.nasdaq.com/articles/3-big-stock-charts-for-tuesday%3A-host-hotels-and-resorts-deere-company-and-western-digital
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Another day, another tractionless slog. Small caps did alright, and large caps showed up, with the S&P 500 edging out a very slight gain of 0.18%. The blue-chip Dow Jones Industrial Index , however, finished the day just a tad in the red, with many traders still unsure about what Q2's earnings season holds in store.
The lethargy was far from universal though. Tesla (NASDAQ: TSLA ) lost a little more than 3%, with whispers now circulating that CEO Elon Musk may be asking suppliers for some refunds as a means of collecting some cash. Meanwhile, Paypal Holdings (NASDAQ: PYPL ) shares improved to the tune of 2% on the heels of news that activist investor Dan Loeb is taking an interest, suggesting PYPL shares are priced at only half their arguable value .
As for Tuesday's top trading prospects, look to Western Digital (NASDAQ: WDC ), Deere & Company (NYSE: DE ) and Host Hotels and Resorts (NYSE: HST ). Here's the deal.
Western Digital (WDC)
Broadly speaking, investors have known a glut in the computer storage/memory market is forming. Although it's difficult to say it's here in full force, it's difficult not to say it's on the horizon.
9 A-Rated Cheap Stocks to Consider
Western Digital is already suffering the impact of that concern. Yet, given how the downtrend is a slow-building, acceleration-gaining move, things are likely to get worse before they get better. This is shaping up much like 2015's meltdown.
Click to Enlarge • On the monthly chart, WDC is already trapped within the confines of falling support and resistance lines. In fact, the lower edge of that zone is being tested as a floor.
• On that same monthly chart, not only do we already see a bearish MACD cross, both the 100-day and the 200-day moving average lines (gray and white, respectively) are pointed lower, suggesting the undertow has been and still is bearish.
• Though WDC shares managed to fight their way back above the technical floor at $76.12 on the daily chart yesterday, the attack on that floor is telling in and of itself. That support line may not hold up as well if it's pressured again.
Deere & Company (DE)
Like most stocks, Deere & Company shares ran into a headwind early on in the year. Unlike most other stocks though, DE shares haven't latched onto a tailwind in the meantime. Thanks to yesterday's 1.2% dip, Deer shares are back within striking distance of new multimonth lows, with a head of steam behind the selling.
The frustration for bulls? There's no lack of value, nor a lack of growth. The forward-looking P/E is just a bit higher than 11, and sales are expected to grow 30% this year, driving a similar improvement in earnings. That's not going to stave off a short-term pullback though.
Click to Enlarge • We just saw a so-called "death cross," where the 50-day moving average line (purple) has moved below the 200-day average (white). In fact, we've seen several other moving average crossunders, just within the past few days.
• There's plenty of selling volume behind the pullback too, implying there are lots of doubters and would-be sellers still waiting in the wings.
• The monthly chart's huge 2017 rally, in retrospect, explains how there's so much profit-taking potential now. In fact, on the monthly chart we're now moving in the shadow of a bearish MACD cross.
Host Hotels and Resorts (HST)
Finally, though things looked a little hairy for Host Hotels and Resorts in June (with the REIT starting to peel back from a big April/May rally), the chart has taken a turn for the better.
It's not just that shares are edging higher again, however. It's how they made the turn that implies the budding uptrend could last a while and repeat the kind of prolonged moves we saw in April and May. Never even mind the fact that the longer-term uptrend has been and remains bullish.
Click to Enlarge • With Monday's 1.4% gain in the books, HST has hammered out a slow, arching U-shaped reversal, which tend to last longer that sharp, V-shaped turnarounds.
• There's plenty of volume behind the renewed uptrend as well, as evidenced by the way the accumulation-distribution line and the Chaikin line have both turned higher again. The Chaikin line has even worked its way above the zero level, saying the volume trend has turned back to a net-bullish one.
• The longer-term uptrend is framed on the monthly chart. There's still lots of room to keep rising, as the 100-day and 200-day lines (gray and white, respectively) have only recently been crossed above again.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter , at @jbrumley.
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The post 3 Big Stock Charts for Tuesday: Host Hotels and Resorts, Deere & Company and Western Digital appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The blue-chip Dow Jones Industrial Index , however, finished the day just a tad in the red, with many traders still unsure about what Q2's earnings season holds in store. As for Tuesday's top trading prospects, look to Western Digital (NASDAQ: WDC ), Deere & Company (NYSE: DE ) and Host Hotels and Resorts (NYSE: HST ). Here's the deal.
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As for Tuesday's top trading prospects, look to Western Digital (NASDAQ: WDC ), Deere & Company (NYSE: DE ) and Host Hotels and Resorts (NYSE: HST ). Deere & Company (DE) Like most stocks, Deere & Company shares ran into a headwind early on in the year. More From InvestorPlace 7 Recession-Proof Stocks to Buy for When the Boom Ends 5 "Hated" Growth Stocks That You Shouldn't Ignore 5 Stocks That Could Double In the Next 5 Years 5 Hot Stocks Today (That Could Crash Tomorrow) Compare Brokers The post 3 Big Stock Charts for Tuesday: Host Hotels and Resorts, Deere & Company and Western Digital appeared first on InvestorPlace .
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• On that same monthly chart, not only do we already see a bearish MACD cross, both the 100-day and the 200-day moving average lines (gray and white, respectively) are pointed lower, suggesting the undertow has been and still is bearish. Click to Enlarge • We just saw a so-called "death cross," where the 50-day moving average line (purple) has moved below the 200-day average (white). More From InvestorPlace 7 Recession-Proof Stocks to Buy for When the Boom Ends 5 "Hated" Growth Stocks That You Shouldn't Ignore 5 Stocks That Could Double In the Next 5 Years 5 Hot Stocks Today (That Could Crash Tomorrow) Compare Brokers The post 3 Big Stock Charts for Tuesday: Host Hotels and Resorts, Deere & Company and Western Digital appeared first on InvestorPlace .
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• There's plenty of volume behind the renewed uptrend as well, as evidenced by the way the accumulation-distribution line and the Chaikin line have both turned higher again. More From InvestorPlace 7 Recession-Proof Stocks to Buy for When the Boom Ends 5 "Hated" Growth Stocks That You Shouldn't Ignore 5 Stocks That Could Double In the Next 5 Years 5 Hot Stocks Today (That Could Crash Tomorrow) Compare Brokers The post 3 Big Stock Charts for Tuesday: Host Hotels and Resorts, Deere & Company and Western Digital appeared first on InvestorPlace . The blue-chip Dow Jones Industrial Index , however, finished the day just a tad in the red, with many traders still unsure about what Q2's earnings season holds in store.
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882e9732-187c-4c3a-937f-b1b23a54f515
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721975.0
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2018-07-17 00:00:00 UTC
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Morning Movers: Johnson & Johnson Gains; Deere, Caterpillar Slip
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DE
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https://www.nasdaq.com/articles/morning-movers-johnson-johnson-gains-deere-caterpillar-slip-2018-07-17
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nan
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nan
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The Dow Jones Industrial Average is edging lower this morning as UnitedHealth Group (UNH) slips on earnings. In today's Morning Movers, we...
Getty Images
•...wonder if Fed Chair Jerome Powel's testimony to Congress will sink the market; •...review Johnson & Johnson's (JNJ) earnings; •...and highlight Goldman Sachs rating changes for Manitowoc (MTW), Caterpillar (CAT) and Deere (DE).
Will today be the day to break the summer lethargy that's set in over the market? If so it will have to come from something we haven't seen yet, like Fed Chairman Jerome Powell's testimony before Congress.
S&P 500 futures have declined 0.2%, while Dow Jones Industrial Average futures have dipped 11 points. Nasdaq Composite futures have fallen 0.2%.
As for Powell, Nick Colas, co-founder of DataTrek Research, contends that he will want to convince the market that the Fed will raise rates two more times this year, a one-hike-per-quarter pace. Right now, the market puts odds of two hikes at just over 50%, but Colas believes Powell would like to get that number over 70%. In order to make that happen, Colas writes that Powell will have to talk sound talk up the strength of the economy, sound convincing when he talks about accelerating inflation, and downplay tariffs. The first, Colas says is easy; the second "not so easy;" and the third "downright hard." Trying to get the market to price in two hikes could be risky for the markets, Colas explains. "In short, getting markets to fully discount 2 more rate hikes in 2018 is a genuine high wire act, and there's no net below," he writes. "Equity markets are already twitchy about the trade issue ; downplaying its effects on the economy is risky."
And if the market does drop? Tigress Financial's Ivan Feinseth contends investors should keep buying the dip. Strong economic growth and solid earnings should continue to put a floor under the market, even when it drops due tariff worries, just as it has since the market's early-year correction. "I have said for the past four months that buying the dip was the right strategy and that has played out," Feinseth explains. "I still maintain that strong Q2 results will be the catalyst that drives all three major indexes to all-time highs in the next one to two months."
Just not today.
Earnings & News
Goldman Sachs (GS) is up 0.8% to $233.25 after reporting second-quarter earnings. The financial giant earned $5.98 a share on revenue of $9.4 billion. Analysts were looking for earnings of $4.65 a share on revenue of $8.4 billion. It confirmed David Solomonwill succeedLloyd Blankfein as the new CEO.
Agence France-Presse/Getty Images
Johnson & Johnson (JNJ) is up 0.7% to $125.50 after reporting second-quarter earnings. The drug and personal products maker earned $2.10 a share on revenue of $20.83 billion. Analysts were looking for earnings of $2.07 a share on revenue of $20.39 billion. For the full year, the company expects EPS of $8 to $8.20, on revenue of $80.5 billion to $81.3 billion. Consensus calls for earnings of $8.12 on revenue of $81.37 billion.
Netflix (NFLX) is down after reporting second-quarter earnings. The streaming giant earned 88 cents a share on revenue of $3.9 billion. Analysts were looking for earnings of 790 cents on revenue of $3.9 billion. Netflix added 670,000domestic subscribers, well below the 1.2 million consensus.
UnitedHealth (UNH) is down 1.7% to $252.50 after reporting second-quarter earnings. The insurer earned $3.14 a share on revenue of $56.09 billion. Analysts were looking for earnings of $3.04 a share on revenue of $56.1 billion. For the full year, it raised its EPS guidance to $12.50 to $12.75 a share, compared with the $12.63 consensus. - Teresa Rivas
Upgrades & Downgrades
Bloomin' Brands (BLMN) is up 1.6% to $21.05 after Raymond James upgraded it to Outperform.
First American Financial (FAF) is up 1.3% to $52.57 after Keefe, Bruyette & Woods upgraded it to Outperform.
Getty Images
Hormel Foods (HRL) is down 1.8% to $36.50 after Stephens downgraded it to Equal Weight.
Goodyear Tire & Rubber (GT) is down 5.7% to $21.15 after Goldman Sachs downgraded it to Sell.
Manitowoc (MTW) is down 3.4% to $26.06 after Goldman Sachs downgraded it to Sell. Goldman also removed Caterpillar (CAT) and Deere (DE) from its Conviction Buy list.
Waters (WAT) is down 0.5% to $192.47 after Janney Montgomery Scott downgraded it to Neutral. - T.R
Sign up to Review & Preview, a new daily email from Barron's. Every evening we'll review the news that moved markets during the day and look ahead to what it means for your portfolio in the morning.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for Powell, Nick Colas, co-founder of DataTrek Research, contends that he will want to convince the market that the Fed will raise rates two more times this year, a one-hike-per-quarter pace. In today's Morning Movers, we... Getty Images •...wonder if Fed Chair Jerome Powel's testimony to Congress will sink the market; •...review Johnson & Johnson's (JNJ) earnings; •...and highlight Goldman Sachs rating changes for Manitowoc (MTW), Caterpillar (CAT) and Deere (DE). S&P 500 futures have declined 0.2%, while Dow Jones Industrial Average futures have dipped 11 points.
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In today's Morning Movers, we... Getty Images •...wonder if Fed Chair Jerome Powel's testimony to Congress will sink the market; •...review Johnson & Johnson's (JNJ) earnings; •...and highlight Goldman Sachs rating changes for Manitowoc (MTW), Caterpillar (CAT) and Deere (DE). S&P 500 futures have declined 0.2%, while Dow Jones Industrial Average futures have dipped 11 points. As for Powell, Nick Colas, co-founder of DataTrek Research, contends that he will want to convince the market that the Fed will raise rates two more times this year, a one-hike-per-quarter pace.
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In today's Morning Movers, we... Getty Images •...wonder if Fed Chair Jerome Powel's testimony to Congress will sink the market; •...review Johnson & Johnson's (JNJ) earnings; •...and highlight Goldman Sachs rating changes for Manitowoc (MTW), Caterpillar (CAT) and Deere (DE). Strong economic growth and solid earnings should continue to put a floor under the market, even when it drops due tariff worries, just as it has since the market's early-year correction. S&P 500 futures have declined 0.2%, while Dow Jones Industrial Average futures have dipped 11 points.
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In today's Morning Movers, we... Getty Images •...wonder if Fed Chair Jerome Powel's testimony to Congress will sink the market; •...review Johnson & Johnson's (JNJ) earnings; •...and highlight Goldman Sachs rating changes for Manitowoc (MTW), Caterpillar (CAT) and Deere (DE). S&P 500 futures have declined 0.2%, while Dow Jones Industrial Average futures have dipped 11 points. As for Powell, Nick Colas, co-founder of DataTrek Research, contends that he will want to convince the market that the Fed will raise rates two more times this year, a one-hike-per-quarter pace.
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e8ce35b1-2c4b-4f0e-a647-2bc19fae2307
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721976.0
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2018-07-11 00:00:00 UTC
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COMT, DE, NTR, WY: ETF Inflow Alert
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DE
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https://www.nasdaq.com/articles/comt-de-ntr-wy-etf-inflow-alert-2018-07-11
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Commodities Select Strategy ETF (Symbol: COMT) where we have detected an approximate $62.5 million dollar inflow -- that's a 8.6% increase week over week in outstanding units (from 18,700,000 to 20,300,000). Among the largest underlying components of COMT, in trading today Deere & Co. (Symbol: DE) is down about 2%, Nutrien Ltd.HARES (Symbol: NTR) is down about 1.8%, and Weyerhaeuser Co (Symbol: WY) is up by about 0.1%. For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average:
Looking at the chart above, COMT's low point in its 52 week range is $32.56 per share, with $40.62 as the 52 week high point - that compares with a last trade of $38.64. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average: Looking at the chart above, COMT's low point in its 52 week range is $32.56 per share, with $40.62 as the 52 week high point - that compares with a last trade of $38.64. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of COMT, in trading today Deere & Co. (Symbol: DE) is down about 2%, Nutrien Ltd.HARES (Symbol: NTR) is down about 1.8%, and Weyerhaeuser Co (Symbol: WY) is up by about 0.1%. For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average: Looking at the chart above, COMT's low point in its 52 week range is $32.56 per share, with $40.62 as the 52 week high point - that compares with a last trade of $38.64. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Commodities Select Strategy ETF (Symbol: COMT) where we have detected an approximate $62.5 million dollar inflow -- that's a 8.6% increase week over week in outstanding units (from 18,700,000 to 20,300,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Commodities Select Strategy ETF (Symbol: COMT) where we have detected an approximate $62.5 million dollar inflow -- that's a 8.6% increase week over week in outstanding units (from 18,700,000 to 20,300,000). For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average: Looking at the chart above, COMT's low point in its 52 week range is $32.56 per share, with $40.62 as the 52 week high point - that compares with a last trade of $38.64. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Commodities Select Strategy ETF (Symbol: COMT) where we have detected an approximate $62.5 million dollar inflow -- that's a 8.6% increase week over week in outstanding units (from 18,700,000 to 20,300,000). For a complete list of holdings, visit the COMT Holdings page » The chart below shows the one year price performance of COMT, versus its 200 day moving average: Looking at the chart above, COMT's low point in its 52 week range is $32.56 per share, with $40.62 as the 52 week high point - that compares with a last trade of $38.64. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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222957e3-c60b-4ce3-81db-2917e3ddaf0b
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721977.0
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2018-07-09 00:00:00 UTC
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Noteworthy Monday Option Activity: IGT, DE, KEM
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DE
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-igt-de-kem-2018-07-09
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in International Game Technology PLC (Symbol: IGT), where a total of 35,393 contracts have traded so far, representing approximately 3.5 million underlying shares. That amounts to about 117.6% of IGT's average daily trading volume over the past month of 3.0 million shares. Particularly high volume was seen for the $25 strike call option expiring August 17, 2018 , with 5,106 contracts trading so far today, representing approximately 510,600 underlying shares of IGT. Below is a chart showing IGT's trailing twelve month trading history, with the $25 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 24,748 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 95.7% of DE's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $148 strike call option expiring July 13, 2018 , with 4,450 contracts trading so far today, representing approximately 445,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $148 strike highlighted in orange:
And KEMET Corp. (Symbol: KEM) options are showing a volume of 11,005 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 78.2% of KEM's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $28 strike call option expiring July 20, 2018 , with 3,522 contracts trading so far today, representing approximately 352,200 underlying shares of KEM. Below is a chart showing KEM's trailing twelve month trading history, with the $28 strike highlighted in orange:
For the various different available expirations for IGT options , DE options , or KEM options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $25 strike call option expiring August 17, 2018 , with 5,106 contracts trading so far today, representing approximately 510,600 underlying shares of IGT. Especially high volume was seen for the $148 strike call option expiring July 13, 2018 , with 4,450 contracts trading so far today, representing approximately 445,000 underlying shares of DE. Especially high volume was seen for the $28 strike call option expiring July 20, 2018 , with 3,522 contracts trading so far today, representing approximately 352,200 underlying shares of KEM.
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Below is a chart showing IGT's trailing twelve month trading history, with the $25 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 24,748 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 95.7% of DE's average daily trading volume over the past month, of 2.6 million shares. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 78.2% of KEM's average daily trading volume over the past month, of 1.4 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in International Game Technology PLC (Symbol: IGT), where a total of 35,393 contracts have traded so far, representing approximately 3.5 million underlying shares. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 95.7% of DE's average daily trading volume over the past month, of 2.6 million shares. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 78.2% of KEM's average daily trading volume over the past month, of 1.4 million shares.
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Especially high volume was seen for the $148 strike call option expiring July 13, 2018 , with 4,450 contracts trading so far today, representing approximately 445,000 underlying shares of DE. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 78.2% of KEM's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $28 strike call option expiring July 20, 2018 , with 3,522 contracts trading so far today, representing approximately 352,200 underlying shares of KEM.
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e373cea4-2252-468a-89ba-da6daffd67ba
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721978.0
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2018-07-09 00:00:00 UTC
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Call buyers take big position in Deere
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DE
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https://www.nasdaq.com/articles/call-buyers-take-big-position-deere-2018-07-09
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nan
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nan
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Traders are buying calls Monday in anticipation of a rally in Deere & Co. ( DE ). So far, 3,486 contracts of the July 157.50 call have changed hands, against open interest of 244 contracts. Today's volume has all been priced high in the spread, indicating these new contracts were initiated from the buy side.
InvestorsKeyhole Trade Alert
IK-> The technicals for DE ($144.88 up $4.90) are neutral with a sideways trend. The stock has support around 138.70. Look at the Aug. 120/125 bull-put spread for a 26-cent credit. That's a 5.3% return and the stock has to fall by 13.7% to cause a problem. [InvestorsKeyhole, various news and data services]
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Originally published on InvestorsObserver.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Traders are buying calls Monday in anticipation of a rally in Deere & Co. ( DE ). Today's volume has all been priced high in the spread, indicating these new contracts were initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($144.88 up $4.90) are neutral with a sideways trend.
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Traders are buying calls Monday in anticipation of a rally in Deere & Co. ( DE ). Today's volume has all been priced high in the spread, indicating these new contracts were initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($144.88 up $4.90) are neutral with a sideways trend.
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Today's volume has all been priced high in the spread, indicating these new contracts were initiated from the buy side. Traders are buying calls Monday in anticipation of a rally in Deere & Co. ( DE ). InvestorsKeyhole Trade Alert IK-> The technicals for DE ($144.88 up $4.90) are neutral with a sideways trend.
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Traders are buying calls Monday in anticipation of a rally in Deere & Co. ( DE ). Today's volume has all been priced high in the spread, indicating these new contracts were initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($144.88 up $4.90) are neutral with a sideways trend.
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041360ff-41b9-4dd4-966c-1e6ed3a381c2
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721979.0
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2018-07-06 00:00:00 UTC
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How Much Will Construction & Forestry Segment Contribute To Deere's Top Line Growth?
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DE
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https://www.nasdaq.com/articles/how-much-will-construction-forestry-segment-contribute-deeres-top-line-growth-2018-07-06
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nan
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nan
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Deere ( DE ) has performed modestly over the past couple of years. The company saw its revenue fall by just under 8% between 2015-2016, largely due to the weakness in commodity prices, and high grain stocks in North America. Further, lower shipment volumes dampened the Construction segment. However, a favorable sales mix, recovery in commodity prices, and improved demand for its agricultural and construction equipment helped boost its top line in 2017, with revenue growing by over 11%. The Construction & Forestry segment contributes nearly 20% of the company's overall revenue and the segment revenue fell by at nearly 1% annually between 2015-2017.
Based on recent market trends and the near-term outlook provided by the company's management, we forecast Deere to report 8-9% annual revenue growth in the next two years, from $33.5 billion in FY 2018 to about $39 billion in FY 2020. Of the estimated $5.4 billion incremental revenues, we estimate that Construction & Forestry segment will contribute just over 25%, or $1.4 billion. We have summarized our expectations on our interactive dashboard on Deere's revenues . If you disagree with our forecasts, y ou can change the key drivers for Agriculture & Turf segment to gauge how changes will impact its expected revenue.
The Construction Industry segment generates revenue from sales of construction equipment and services. Construction spending is projected to remain strong in 2018, due to the strengthening of the U.S. economy, which should boost the U.S. Housing market and construction spending . This growth, coupled with the Wirtgen acquisition, should boost Deere's Construction business in the coming years. The implementation of the tariffs on steel and aluminum will no doubt increase the costs for Deere's Construction Industry segment, which is heavily reliant on steel. Moreover, the increase in raw material costs as a result of the steel tariffs should result in a hike in prices of the goods manufactured by Deere.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company saw its revenue fall by just under 8% between 2015-2016, largely due to the weakness in commodity prices, and high grain stocks in North America. However, a favorable sales mix, recovery in commodity prices, and improved demand for its agricultural and construction equipment helped boost its top line in 2017, with revenue growing by over 11%. Deere ( DE ) has performed modestly over the past couple of years.
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Deere ( DE ) has performed modestly over the past couple of years. The company saw its revenue fall by just under 8% between 2015-2016, largely due to the weakness in commodity prices, and high grain stocks in North America. However, a favorable sales mix, recovery in commodity prices, and improved demand for its agricultural and construction equipment helped boost its top line in 2017, with revenue growing by over 11%.
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Based on recent market trends and the near-term outlook provided by the company's management, we forecast Deere to report 8-9% annual revenue growth in the next two years, from $33.5 billion in FY 2018 to about $39 billion in FY 2020. Deere ( DE ) has performed modestly over the past couple of years. The company saw its revenue fall by just under 8% between 2015-2016, largely due to the weakness in commodity prices, and high grain stocks in North America.
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Based on recent market trends and the near-term outlook provided by the company's management, we forecast Deere to report 8-9% annual revenue growth in the next two years, from $33.5 billion in FY 2018 to about $39 billion in FY 2020. We have summarized our expectations on our interactive dashboard on Deere's revenues . Deere ( DE ) has performed modestly over the past couple of years.
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e9e8df73-e34f-4e86-a51e-ed218b233e12
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721980.0
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2018-07-05 00:00:00 UTC
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Implied SPLG Analyst Target Price: $36
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DE
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https://www.nasdaq.com/articles/implied-splg-analyst-target-price-36-2018-07-05
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR Portfolio Large Cap ETF (Symbol: SPLG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $35.99 per unit.
With SPLG trading at a recent price near $31.83 per unit, that means that analysts see 13.05% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPLG's underlying holdings with notable upside to their analyst target prices are ManpowerGroup Inc (Symbol: MAN), Deere & Co. (Symbol: DE), and Dollar Tree Inc (Symbol: DLTR). Although MAN has traded at a recent price of $85.25/share, the average analyst target is 43.11% higher at $122.00/share. Similarly, DE has 26.69% upside from the recent share price of $140.24 if the average analyst target price of $177.67/share is reached, and analysts on average are expecting DLTR to reach a target price of $105.74/share, which is 26.55% above the recent price of $83.55. Below is a twelve month price history chart comparing the stock performance of MAN, DE, and DLTR:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although MAN has traded at a recent price of $85.25/share, the average analyst target is 43.11% higher at $122.00/share. Below is a twelve month price history chart comparing the stock performance of MAN, DE, and DLTR: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Three of SPLG's underlying holdings with notable upside to their analyst target prices are ManpowerGroup Inc (Symbol: MAN), Deere & Co. (Symbol: DE), and Dollar Tree Inc (Symbol: DLTR). Similarly, DE has 26.69% upside from the recent share price of $140.24 if the average analyst target price of $177.67/share is reached, and analysts on average are expecting DLTR to reach a target price of $105.74/share, which is 26.55% above the recent price of $83.55. 10 ETFs With Most Upside To Analyst Targets » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, DE has 26.69% upside from the recent share price of $140.24 if the average analyst target price of $177.67/share is reached, and analysts on average are expecting DLTR to reach a target price of $105.74/share, which is 26.55% above the recent price of $83.55. Below is a twelve month price history chart comparing the stock performance of MAN, DE, and DLTR: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With SPLG trading at a recent price near $31.83 per unit, that means that analysts see 13.05% upside for this ETF looking through to the average analyst targets of the underlying holdings. Below is a twelve month price history chart comparing the stock performance of MAN, DE, and DLTR: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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7293a2c5-35b7-481d-b345-4b2897fbc544
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721981.0
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2018-07-02 00:00:00 UTC
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7 Stocks at Risk as Trump’s Trade War Heats Up
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DE
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https://www.nasdaq.com/articles/7-stocks-at-risk-as-trumps-trade-war-heats-up-2018-07-02
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. equites are drifting lower again on Monday as investors react to more negative trade-related headlines.
U.S. tariffs against China (and Chinese tariffs against the U.S.) are set to kick in this week. U.S. tariffs against steel and aluminum imports are already in effect. And President Donald Trump is threatening to enact tariffs on imported vehicles, which has caught the ire of the European Union and a threat of a counter tariff on $300 billion worth of U.S. exports.
It's a mess. And the situation doesn't look like it's going to get better anytime soon.
20 Red-Hot Tech Stocks to Consider
As a result, trade-related stocks look vulnerable to downside pressure. Here are seven to avoid:
Stocks at Risk: Wal-Mart (WMT)
Walmart (NYSE: WMT ) shares are lurching lower, dropping to the lower end of a trading range going back to March as Congress works on a bill that could impose work requirements for food stamp recipients. This is seen as a negative for discount retailers, ostensibly on a negative impact to the number of Americans getting food stamps.
The retailer is also vulnerable to an increase in the cost of imported goods.
The company will next report results on Aug. 16 before the bell. Analysts are looking for earnings of $1.22 per share on revenues of $124.8 billion. When the company last reported on May 17, earnings of $1.14 beat estimates by two cents on a 4.4% rise in revenues.
Stocks at Risk: Caterpillar (CAT)
Caterpillar (NYSE: CAT ) shares have fallen below their 200-day moving average and violated their year-to-date lows as trade tensions have deepened. The company will be directly impacted by a $34 billion tariff China is placing on several categories of goods, including agricultural machinery, starting July 6 as well as another $16 billion tariff on products benefiting from the Made in China 2025 initiative.
The company will next report results on July 24 before the bell. Analysts are looking for earnings of $2.72 per share on revenues of $14.1 billion.
5 Bank Stocks That Pay Big Dividends to Shareholders
When the company last reported on April 24, earnings of $2.82 beat estimates by 69 cents per share on a 30.9% rise in revenues.
Stocks at Risk: Boeing (BA)
Boeing (NYSE: BA ) shares represent one of America's most critical exports - commercial aircraft - to the Chinese market. China is directly targeting the company with its countervailing tariffs, including a $34 billion tariff on a group of products including aircraft engine parts.
The company will next report results on July 25. Analysts are looking for earnings of $3.46 per share on revenues of $23.83 billion. When the company last reported on April 25, earnings of $3.64 per share beat estimates by $1.06 on a 6.5% rise in revenues.
Stocks at Risk: Deere (DE)
Deere & Company (NYSE: DE ) shares have dropped back to test lows last seen in early May, representing a decline of nearly 20% from the highs hit in January-March. No only is Beijing targeting American exports of farm machinery, but is looking to put a tariff on $34 billion worth of American farm produce as well - potentially impacting farmers and their ability to purchase new machinery.
The company will next report results on Aug. 17 before the bell. Analysts are looking for earnings of $2.73 per share on revenues of $9.2 billion.
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When the company last reported on May 18, earnings of $3.14 missed estimates by 19 cents on a 34.3% rise in revenues.
Stocks at Risk: General Motors (GM)
General Motors (NYSE: GM ) shares are testing below their 50-day moving average after the company warned Trump that ongoing trade tensions risk making the company smaller. The decline totals 13% from the levels last seen in early June. Trump urged citizens to take the company's threat to shift production with a grain of salt.
The company will next report results on July 26 before the bell. Analysts are looking for earnings of $1.91 per share on revenues of $36.9 billion. When the company last reported on April 26, earning of $1.43 beat estimates by 19 cents on a 12.4% decline in revenues.
Stocks at Risk: Apple (AAPL)
Apple (NASDAQ: AAPL ) has enjoyed steady buying demand thanks to ongoing investor obsession with the "FAANGs" but is regardless still negatively exposed to the U.S.-China trade tensions. Trump even reportedly told AAPL CEO Tim Cook that he would ensure iPhones manufactured in China wouldn't be subjected to an import tax .
The company will next report results on July 31 after the close. Analysts are looking for earnings of $2.18 per share on revenues of $52.4 billion.
6 Marijuana Stocks to Invest In for 1,000%+ Gains
When the company last reported on May 1, earnings of $2.73 beat estimates by six cents on a 15.6% rise in revenue.
Stocks at Risk: AMD (AMD)
Advanced Micro Devices (NASDAQ: AMD ) shares have dropped more than 10% off of their June highs after a more than 70% fall off of its April low. The company has 26% of its sales out of China, which are at risk amid chatter Trump is looking at limiting Chinese investment in U.S. technology companies - raising the specter of two "walled gardens" with U.S. and Chinese semiconductor companies supplying their respective markets but not each other.
The company will next report results on July 25 after the close. Analysts are looking for earnings of 13 cents per share on revenues of $1.7 billion. When the company last reported on April 25, earnings of 11 cents per share beat estimates by two cents on a 39.8% rise in revenues.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
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The post 7 Stocks at Risk as Trump's Trade War Heats Up appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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5 Bank Stocks That Pay Big Dividends to Shareholders When the company last reported on April 24, earnings of $2.82 beat estimates by 69 cents per share on a 30.9% rise in revenues. InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equites are drifting lower again on Monday as investors react to more negative trade-related headlines. And President Donald Trump is threatening to enact tariffs on imported vehicles, which has caught the ire of the European Union and a threat of a counter tariff on $300 billion worth of U.S. exports.
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Stocks at Risk: Deere (DE) Deere & Company (NYSE: DE ) shares have dropped back to test lows last seen in early May, representing a decline of nearly 20% from the highs hit in January-March. Stocks at Risk: General Motors (GM) General Motors (NYSE: GM ) shares are testing below their 50-day moving average after the company warned Trump that ongoing trade tensions risk making the company smaller. InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equites are drifting lower again on Monday as investors react to more negative trade-related headlines.
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5 Bank Stocks That Pay Big Dividends to Shareholders When the company last reported on April 24, earnings of $2.82 beat estimates by 69 cents per share on a 30.9% rise in revenues. Stocks at Risk: General Motors (GM) General Motors (NYSE: GM ) shares are testing below their 50-day moving average after the company warned Trump that ongoing trade tensions risk making the company smaller. InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equites are drifting lower again on Monday as investors react to more negative trade-related headlines.
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Stocks at Risk: Deere (DE) Deere & Company (NYSE: DE ) shares have dropped back to test lows last seen in early May, representing a decline of nearly 20% from the highs hit in January-March. When the company last reported on April 26, earning of $1.43 beat estimates by 19 cents on a 12.4% decline in revenues. InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equites are drifting lower again on Monday as investors react to more negative trade-related headlines.
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e806e7e5-ea77-4253-a1e2-180472a353ed
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721982.0
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2018-07-02 00:00:00 UTC
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Noteworthy Monday Option Activity: SWK, DE, PCG
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DE
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-swk-de-pcg-2018-07-02
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Stanley Black & Decker Inc (Symbol: SWK), where a total volume of 7,732 contracts has been traded thus far today, a contract volume which is representative of approximately 773,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 61.4% of SWK's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $136 strike call option expiring July 20, 2018 , with 1,646 contracts trading so far today, representing approximately 164,600 underlying shares of SWK. Below is a chart showing SWK's trailing twelve month trading history, with the $136 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 11,103 contracts, representing approximately 1.1 million underlying shares or approximately 43.1% of DE's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $138 strike put option expiring July 13, 2018 , with 2,011 contracts trading so far today, representing approximately 201,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $138 strike highlighted in orange:
And PG&E Corp (Symbol: PCG) saw options trading volume of 27,160 contracts, representing approximately 2.7 million underlying shares or approximately 42.4% of PCG's average daily trading volume over the past month, of 6.4 million shares. Especially high volume was seen for the $40 strike call option expiring July 20, 2018 , with 11,688 contracts trading so far today, representing approximately 1.2 million underlying shares of PCG. Below is a chart showing PCG's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for SWK options , DE options , or PCG options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $136 strike call option expiring July 20, 2018 , with 1,646 contracts trading so far today, representing approximately 164,600 underlying shares of SWK. Especially high volume was seen for the $138 strike put option expiring July 13, 2018 , with 2,011 contracts trading so far today, representing approximately 201,100 underlying shares of DE. Especially high volume was seen for the $40 strike call option expiring July 20, 2018 , with 11,688 contracts trading so far today, representing approximately 1.2 million underlying shares of PCG.
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Below is a chart showing SWK's trailing twelve month trading history, with the $136 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,103 contracts, representing approximately 1.1 million underlying shares or approximately 43.1% of DE's average daily trading volume over the past month, of 2.6 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $138 strike highlighted in orange: And PG&E Corp (Symbol: PCG) saw options trading volume of 27,160 contracts, representing approximately 2.7 million underlying shares or approximately 42.4% of PCG's average daily trading volume over the past month, of 6.4 million shares. Especially high volume was seen for the $40 strike call option expiring July 20, 2018 , with 11,688 contracts trading so far today, representing approximately 1.2 million underlying shares of PCG.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Stanley Black & Decker Inc (Symbol: SWK), where a total volume of 7,732 contracts has been traded thus far today, a contract volume which is representative of approximately 773,200 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing SWK's trailing twelve month trading history, with the $136 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,103 contracts, representing approximately 1.1 million underlying shares or approximately 43.1% of DE's average daily trading volume over the past month, of 2.6 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $138 strike highlighted in orange: And PG&E Corp (Symbol: PCG) saw options trading volume of 27,160 contracts, representing approximately 2.7 million underlying shares or approximately 42.4% of PCG's average daily trading volume over the past month, of 6.4 million shares.
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Especially high volume was seen for the $136 strike call option expiring July 20, 2018 , with 1,646 contracts trading so far today, representing approximately 164,600 underlying shares of SWK. Below is a chart showing SWK's trailing twelve month trading history, with the $136 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,103 contracts, representing approximately 1.1 million underlying shares or approximately 43.1% of DE's average daily trading volume over the past month, of 2.6 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Stanley Black & Decker Inc (Symbol: SWK), where a total volume of 7,732 contracts has been traded thus far today, a contract volume which is representative of approximately 773,200 underlying shares (given that every 1 contract represents 100 underlying shares).
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2563869d-7da3-4458-af01-44e1943b5e84
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721983.0
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2018-06-28 00:00:00 UTC
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DE Crosses Above 2% Yield Territory
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DE
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https://www.nasdaq.com/articles/de-crosses-above-2-yield-territory-2018-06-28
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.76), with the stock changing hands as low as $137.32 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF ( SPY ) back on 12/31/1999 - you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 2% would appear considerably attractive if that yield is sustainable. Deere & Co. (Symbol: DE) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Deere & Co., looking at the history chart for DE below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield.
Click here to find out which 9 other dividend stocks just recently went on sale »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.76), with the stock changing hands as low as $137.32 on the day. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.76), with the stock changing hands as low as $137.32 on the day. Click here to find out which 9 other dividend stocks just recently went on sale » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.76), with the stock changing hands as low as $137.32 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. Click here to find out which 9 other dividend stocks just recently went on sale » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.76), with the stock changing hands as low as $137.32 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. Deere & Co. (Symbol: DE) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
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ff07ba11-68d9-4311-814c-d9bcb15c23dc
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721984.0
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2018-06-26 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Cisco, Oracle, Kraft Heinz, Micron and Deere
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-cisco-oracle-kraft-heinz-micron-and-deere-2018-06-26
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nan
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nan
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For Immediate Release
Chicago, IL - June 26, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Cisco CSCO , Oracle ORCL , Kraft Heinz KHC , Micron MU and Deere DE .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Top Analyst Reports for Cisco, Oracle and Kraft Heinz
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Cisco, Oracle and Kraft Heinz. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all oftoday's research reports here >>>
Cisco 's shares have outperformed the Zacks Networking industry year to date, gaining +12.7% vs. +11.9%. Cisco is an IP-based networking company. Strong contribution from acquisitions, security, Infrastructure Platforms and applications drove are positives.
The Zacks analyst thinks Cisco's expanding footprint in the rapidly growing security market presents significant growth opportunities. Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well. Partnerships with Telenor, Apple, IBM, Microsoft and Google Cloud are positive. Divestiture of a portion of Cisco's NDS video assets is likely to mitigate the sluggishness witnessed in other product segment.
However, weakness in switching and routing is a headwind. Ongoing transition to subscription-based model will continue to hurt the top line. Further, dampening service provider business and intense competition from the likes of Huawei, Juniper and Arista Networks are other concerns.
(You can read the full research report on Cisco here >>> ).
Shares of Oracle have underperformed the Zacks Software industry in the last year, losing -13.3% vs. +29.4%. Oracle is one of the largest enterprise-grade database, middleware and application software providers. The company is benefiting from strong adoption of its cloud-based solutions.
The Zacks analyst thinks the company's growing cloud market share will continue to drive top-line growth in the long haul. Partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS.
Notably, Oracle has undergone structural changes. It no longer intends to break out its cloud revenues and does not provide any guidance on SaaS, Cloud PaaS and IaaS. This move is likely to enhance investor concern about the company's outlook.
(You can read the full research report on Oracle here >>> ).
Kraft Heinz 's shares have declined -18.6% year to date, underperforming the Zacks Diversified Food industry which is down -7.8% over the same period. Kraft Heinz posted first-quarter 2018 results, wherein earnings beat expectations while revenues missed the same.
The Zacks analyst thinks the company is progressing well with its cost-savings plan as well as efforts to enhance productivity like zero-based budgeting; modernization and biding capability within the manufacturing footprint. However, Kraft Heinz top line has been soft. Evidently, in the first quarter, the top line was adversely impacted by soft consumer demand in North America and Rest of World.
Kraft Heinz has been struggling due to the shift in consumer preference toward natural and organic ingredients over packaged and processed food. Estimates have also trended downward over the past 60 days. Nevertheless, the company's cost-savings, which are re-invested in the business for innovation, brand building and marketing should provide cushion.
(You can read the full research report on Kraft Heinz here >>> ).
Other noteworthy reports we are featuring today include Micron and Deere.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
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Strong Stocks that Should Be in the News
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
The Kraft Heinz Company (KHC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Cisco CSCO , Oracle ORCL , Kraft Heinz KHC , Micron MU and Deere DE . The Zacks analyst thinks the company is progressing well with its cost-savings plan as well as efforts to enhance productivity like zero-based budgeting; modernization and biding capability within the manufacturing footprint. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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Stocks recently featured in the blog include Cisco CSCO , Oracle ORCL , Kraft Heinz KHC , Micron MU and Deere DE . Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Cisco CSCO , Oracle ORCL , Kraft Heinz KHC , Micron MU and Deere DE . Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well.
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Stocks recently featured in the blog include Cisco CSCO , Oracle ORCL , Kraft Heinz KHC , Micron MU and Deere DE . Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well. Divestiture of a portion of Cisco's NDS video assets is likely to mitigate the sluggishness witnessed in other product segment.
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2018-06-25 00:00:00 UTC
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Top Analyst Reports for Cisco, Oracle & Kraft Heinz
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https://www.nasdaq.com/articles/top-analyst-reports-cisco-oracle-kraft-heinz-2018-06-25
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Monday, June 25, 2018
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Cisco (CSCO), Oracle (ORCL) and Kraft Heinz (KHC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Cisco 's shares have outperformed the Zacks Networking industry year to date, gaining +12.7% vs. +11.9%. Cisco is an IP-based networking company. Strong contribution from acquisitions, security, Infrastructure Platforms and applications drove are positives.
The Zacks analyst thinks Cisco's expanding footprint in the rapidly growing security market presents significant growth opportunities. Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well. Partnerships with Telenor, Apple, IBM, Microsoft and Google Cloud are positive. Divestiture of a portion of Cisco's NDS video assets is likely to mitigate the sluggishness witnessed in other product segment.
However, weakness in switching and routing is a headwind. Ongoing transition to subscription-based model will continue to hurt the top line. Further, dampening service provider business and intense competition from the likes of Huawei, Juniper and Arista Networks are other concerns.
(You can read the full research report on Cisco here >>> ).
Shares of Oracle have underperformed the Zacks Software industry in the last year, losing -13.3% vs. +29.4%. Oracle is one of the largest enterprise-grade database, middleware and application software providers. The company is benefiting from strong adoption of its cloud-based solutions.
The Zacks analyst thinks the company's growing cloud market share will continue to drive top-line growth in the long haul. Partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS.
Notably, Oracle has undergone structural changes. It no longer intends to break out its cloud revenues and does not provide any guidance on SaaS, Cloud PaaS and IaaS. This move is likely to enhance investor concern about the company's outlook.
(You can read the full research report on Oracle here >>> ).
Kraft Heinz 's shares have declined -18.6% year to date, underperforming the Zacks Diversified Food industry which is down -7.8% over the same period. Kraft Heinz posted first-quarter 2018 results, wherein earnings beat expectations while revenues missed the same.
The Zacks analyst thinks the company is progressing well with its cost-savings plan as well as efforts to enhance productivity like zero-based budgeting; modernization and biding capability within the manufacturing footprint. However, Kraft Heinz top line has been soft. Evidently, in the first quarter, the top line was adversely impacted by soft consumer demand in North America and Rest of World.
Kraft Heinz has been struggling due to the shift in consumer preference toward natural and organic ingredients over packaged and processed food. Estimates have also trended downward over the past 60 days. Nevertheless, the company's cost-savings, which are re-invested in the business for innovation, brand building and marketing should provide cushion.
(You can read the full research report on Kraft Heinz here >>> ).
Other noteworthy reports we are featuring today include Micron (MU), ADP (ADP) and Deere (DE).
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trendsand Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Cisco (CSCO) Rides on Security Products & Broadsoft Buyout
Oracle (ORCL) Rides on Cloud Adoption & Product Rollouts
Cost-Savings to Aid Kraft Heinz (KHC), Soft Sales a Worry
Featured Reports
Micron (MU) Benefits from Robust Demand with DRAM in Focus.
Per the Zacks analyst, Micron is winning from a strong demand across all business and product segments. A higher mix of server and graphics DRAM demand is aiding the growth.
ADP Benefits From WorkMarket & Global Cash Card Buyouts
The Zacks analyst believes that acquisitions of WorkMarket and Global Cash Card will help ADP to expand business, strengthen client base and boost top-line growth.
Wirtgen Drives Deere (DE) Amid Agriculture Business Concerns
The Zacks analyst thinks that the Wirtgen buyout will expand Deere's construction business and help offset the impact of weak farm income on its agriculture business.
Marriott (MAR) Gains From Starwood Buyout, Competition Ails
The Zacks analyst believes that Marriott will benefit from the Starwood acquisition and an arresting brand position. However, stiff competition in the hospitality space will continue to prevail
Strong Consumer to Consumer Business Aids Western Union (WU)
Per the Zacks analyst, Consumer-to-Consumer business had aided revenue growth and will remain attractive driven by improvement in cross-border remittance and strong growth in digital platform.
Loan Growth, Higher Rates Aid KeyCorp (KEY), High Cost A Woe
Per the Zacks analyst, KeyCorp is well poised for revenue growth driven by continued loan growth and higher interest rates.
Animal Health Unit Aids Patterson (PDCO), Dental Segment Dull
The Zacks analyst is upbeat about Patterson's Animal Health segment that has been performing well lately.
New Upgrades
Concho (CXO) to Scale Up Operations with RSP Permian Buy
The Zacks analyst believes that Concho Resources' $9.5 billion acquisition of RSP Permian will bolster the scale and leadership position of the combined entity in the prolific Permian oil play.
Burlington Stores (BURL) Sturdy Comps Run to Propel Top-Line
Per the Zacks analyst, Burlington Stores' strategies helped attain 21st straight quarter of comps growth in the first quarter. The company now envisions comps growth of 2.6-3.4% for the final quarter.
Advanced Surgical & Endoscopic Technology Aid CONMED (CNMD)
CONMED gains ground on Advanced Surgical and Endoscopic Technologies growth. The Zacks analyst is also bullish about the company's continued R&D innovations.
New Downgrades
Netflix (NFLX) Hurt By Cost Escalations, Rising Competition
Per the Zacks analyst, increasing market spends and higher investments on content will continue to hurt Netflix's profitability. Rising competition from players like Amazon and Apple is a concern.
Higher Interest Rate, Regulations May Hurt DTE Energy (DTE)
Per the Zacks analyst, escalating interest rate scenario in the United States may hurt a capital-intensive stock like DTE Energy. Also, stringent regulations for curbing emissions remains a concern.
Escalating Costs Weigh on MarketAxess' (MKTX) Margins
Per the Zacks analyst, increasing expenses have weighed on the company's margins and the same are expected to rise over the coming quarters given its ongoing investments in business expansion.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Oracle Corporation (ORCL): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
The Kraft Heinz Company (KHC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks analyst thinks the company is progressing well with its cost-savings plan as well as efforts to enhance productivity like zero-based budgeting; modernization and biding capability within the manufacturing footprint. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Cisco (CSCO) Rides on Security Products & Broadsoft Buyout Oracle (ORCL) Rides on Cloud Adoption & Product Rollouts Cost-Savings to Aid Kraft Heinz (KHC), Soft Sales a Worry Featured Reports Micron (MU) Benefits from Robust Demand with DRAM in Focus. Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Cisco (CSCO) Rides on Security Products & Broadsoft Buyout Oracle (ORCL) Rides on Cloud Adoption & Product Rollouts Cost-Savings to Aid Kraft Heinz (KHC), Soft Sales a Worry Featured Reports Micron (MU) Benefits from Robust Demand with DRAM in Focus. Click to get this free report Oracle Corporation (ORCL): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report To read this article on Zacks.com click here. Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Cisco (CSCO) Rides on Security Products & Broadsoft Buyout Oracle (ORCL) Rides on Cloud Adoption & Product Rollouts Cost-Savings to Aid Kraft Heinz (KHC), Soft Sales a Worry Featured Reports Micron (MU) Benefits from Robust Demand with DRAM in Focus. However, stiff competition in the hospitality space will continue to prevail Strong Consumer to Consumer Business Aids Western Union (WU) Per the Zacks analyst, Consumer-to-Consumer business had aided revenue growth and will remain attractive driven by improvement in cross-border remittance and strong growth in digital platform. Click to get this free report Oracle Corporation (ORCL): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report To read this article on Zacks.com click here.
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Per the Zacks analyst, Micron is winning from a strong demand across all business and product segments. Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well. Divestiture of a portion of Cisco's NDS video assets is likely to mitigate the sluggishness witnessed in other product segment.
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2018-06-25 00:00:00 UTC
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Boyd Gaming Is About to Go on a Shopping Spree
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https://www.nasdaq.com/articles/boyd-gaming-about-go-shopping-spree-2018-06-25
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With legalized sports gambling in the U.S. about to become a reality in many states, regional casino operator Boyd Gaming (NYSE: BYD) is gearing up to go on a spending spree. It just increased a debt offering from $500 million to $700 million and says a portion of the proceeds will be used for acquisitions.
Boyd hasn't exactly been reticent when it comes to making acquisitions, and today owns or operates 24 gaming properties in seven states. Last December, it entered into an agreement with Penn National Gaming (NASDAQ: PENN) to buy four properties after Penn closes on its acquisition of Pinnacle Entertainment , and then two days later agreed to acquire Valley Forge Casino Resort in King of Prussia, Pennsylvania. Earlier this month it completed its acquisition of Lattner Entertainment, a bar and tavern gaming operator with some 220 locations across Illinois.
Boyd is also well established in the sports wagering market, having one of the largest sports books in Nevada, where betting on sports has been legal for decades. Boyd Gaming stands to be one of the big winners from the Supreme Court ruling because of its extensive experience and broad network of regional casinos that will bring sports gambling closer to more people.
Making a big bet on sports wagering
By preparing to buy up more properties, Boyd is ensuring it has as many markets covered as possible, with CEO Keith Smith saying the casino operator was "fully prepared to take advantage of" sports gambling as it rolls out across the country.
It's estimated legalized sports betting could be a $60 billion or $70 billion market when fully implemented, though how much individual casino operators actually benefit from the development remains to be seen. Sports book win in Nevada, or the amount the sports books kept for the year, totaled just over 2% of the $248 million wagered, but the American Gaming Association estimates that $150 billion is wagered illegally on sports in the U.S. each year.
Online gambling has certainly lifted many markets, with some locations like Atlantic City being able to stay afloat because of it. Casino operators are hoping a similar impact is felt with betting on sporting events.
Boyd's offering priced $700 million in senior notes maturing on Aug. 15, 2026, bearing an interest rate of 6% annually. The offering is expected to close on June 25.
The casino operator said it expects to receive approximately $689 million in net proceeds that it intends to use for working capital and general corporate purposes, which includes acquisitions, reducing debt, and expansion. However, it is also planning to pursue a $230 million increase in its revolving credit facility later this year.
At the end of the first quarter, Boyd reported it had over $2.9 billion in long-term debt but a little over $200 million in cash, equivalents, and restricted cash.
An appetite for acquisitions
The ratings agencies may think Boyd Gaming is spreading itself a little thin, though. After Boyd announced its five acquisitions last year, Moody's revised its ratings outlook to stable from positive because it believed Boyd would "no longer be able to achieve and maintain debt/EBITDA at/below the 5.25 times upgrade target within a time frame necessary to achieve a higher rating."
Debt/EBITDA (DE), or earnings before interest, taxes, depreciation, and amortization, is a measure ratings agencies use to determine a company's ability to pay off its debt. A high DE ratio suggests a company may have difficulty servicing its debt, which often leads agencies to lower a company's credit rating.
Prior to the acquisitions, Boyd's DE ratio was 5.6 times, while Moody's expects it to be 5.8 times afterward, which it says is "still comfortably below" the level that would trigger a downgrade, or 6 times.
In fact, Moody's saw Boyd's acquisitions as a positive development long-term, and it sees the casino operator paying down debt by using its free cash flow.
The current debt offering was assigned a B3 rating, within the range of Boyd's existing debt, and the stable outlook did not change even with the revolver increase Boyd intends to seek.
Because Boyd Gaming continues to geographically diversify its operations, particularly as sports gambling opens up new potential streams of revenue, the gaming operator is likely eyeing outlets that it's not currently in, and that could be a bet that pays off big.
10 stocks we like better than Boyd Gaming
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*Stock Advisor returns as of June 4, 2018
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of Moody's. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The casino operator said it expects to receive approximately $689 million in net proceeds that it intends to use for working capital and general corporate purposes, which includes acquisitions, reducing debt, and expansion. It just increased a debt offering from $500 million to $700 million and says a portion of the proceeds will be used for acquisitions. Last December, it entered into an agreement with Penn National Gaming (NASDAQ: PENN) to buy four properties after Penn closes on its acquisition of Pinnacle Entertainment , and then two days later agreed to acquire Valley Forge Casino Resort in King of Prussia, Pennsylvania.
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Last December, it entered into an agreement with Penn National Gaming (NASDAQ: PENN) to buy four properties after Penn closes on its acquisition of Pinnacle Entertainment , and then two days later agreed to acquire Valley Forge Casino Resort in King of Prussia, Pennsylvania. It just increased a debt offering from $500 million to $700 million and says a portion of the proceeds will be used for acquisitions. Boyd is also well established in the sports wagering market, having one of the largest sports books in Nevada, where betting on sports has been legal for decades.
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After Boyd announced its five acquisitions last year, Moody's revised its ratings outlook to stable from positive because it believed Boyd would "no longer be able to achieve and maintain debt/EBITDA at/below the 5.25 times upgrade target within a time frame necessary to achieve a higher rating." It just increased a debt offering from $500 million to $700 million and says a portion of the proceeds will be used for acquisitions. Last December, it entered into an agreement with Penn National Gaming (NASDAQ: PENN) to buy four properties after Penn closes on its acquisition of Pinnacle Entertainment , and then two days later agreed to acquire Valley Forge Casino Resort in King of Prussia, Pennsylvania.
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It just increased a debt offering from $500 million to $700 million and says a portion of the proceeds will be used for acquisitions. After Boyd announced its five acquisitions last year, Moody's revised its ratings outlook to stable from positive because it believed Boyd would "no longer be able to achieve and maintain debt/EBITDA at/below the 5.25 times upgrade target within a time frame necessary to achieve a higher rating." Last December, it entered into an agreement with Penn National Gaming (NASDAQ: PENN) to buy four properties after Penn closes on its acquisition of Pinnacle Entertainment , and then two days later agreed to acquire Valley Forge Casino Resort in King of Prussia, Pennsylvania.
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2018-06-25 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Tesla, Alphabet, Caterpillar, Deere and Goodyear Tire
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-tesla-alphabet-caterpillar-deere-and-goodyear
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For Immediate Release
Chicago, IL - Jun 25, 2018 - Today, Zacks Investment Ideas feature highlights Features: TeslaTSLA , AlphabetGOOGL , CaterpillarCAT , DeereDE and Goodyear TireGT .
Why Tesla Shorts Are Doomed
Make no mistake about it, the Tesla shorts are going to be covering. We saw the first wave of shorts cashing in on a recent share price tumble, but what followed was only the start of what could be an epic run.
The stock succumbed to a fabulous short ploy who called for bankruptcy in "a few months" - even though this was clearly a very low probability event. Still, you have to hand it to Vilas Capital and their CEO, CIO and CFA charter holder who went on a PR campaign to help increase the value of his puts.
That short term trade worked well for Vilas, but those that are short the stock are going to be feeling some pain soon. Let's take a look at the upcoming catalysts that will likely send shares of TSLA to new all-time highs.
Car Sales Data
The shorts won't be helped if Tesla misses sales estimates. I know that flies in the face of common sense, but the fact is that TSLA has come up short of expectations far more than it has beaten the number.
Tesla announces quarterly car sales on or about July 6, 2018 - but the numbers don't really matter. To be clear, the numbers kind of matter, but we already know they are pretty good. They will show solid growth for all models, but that isn't the story.
The story is all about getting the Model 3 to production levels of roughly 5,000 per week. As we get to the final two weeks of June, the company is ramping up its efforts to make more cars and meet this goal. But let's face it, Wall Street will not punish them if they don't!
5,000 A Week
Whether or not 5,000 comes in June or July or August, people want a new TSLA. There is demand for these cars, far more than any other model being built (at these price points).
The end idea is the cars are coming and buyers are there. So when the company announces sales and does… or more likely doesn't reach that level, the shorts will scream 'bloody murder!'
What the shorts seem to have forgotten is that 5,000 a week is only a stepping stone to 7,500 a week and then 10,000 a week. But let's not get ahead of ourselves. It was only a few short months ago that the Model 3 was breaking 1,000 a week consistently.
Sales Estimates
I would tell you that Model 3 sales numbers are the be all and end all if that were true, but they are not. Each and every Model 3 TSLA makes in the year 2018 is basically already sold. They will not be able to satiate the demand for the car.
News outlets like Bloomberg have produced a fancy model to track the VIN's and ask buyers of the car to register it with them so they can more accurately forecast the production level. If you go by their estimates you will come to around 24K cars made this quarter… give or take.
That give or take is the idea that the model isn't perfect and the numbers change on a daily basis. Plus there is the idea of the final two weeks of the quarter likely to be the strongest so even if they just average 4K per week in those last two weeks the number balloons to 32K for the quarter.
In Transit
It is important to note that TSLA is conservative with how it counts cars as actually being sold. They have to be delivered to the owner with all the paperwork being properly filled out. Over the last several quarters the in transit number has been a few hundred to a few thousand.
This time around we should expect to see a number closer to 10K. Maybe not more than 10K, but something close to that level. Why is that?
Well with the production ramping up at the end of the month, it is rather unlikely that more than 10% of the cars made in the final week of the month will be counted as sales. The week before will also have a solid production number but we should only expect 75% of those to reach their final destination.
That in transit number from the prior quarter will help, but next quarter it will become MEANINGFUL .
Summer Squeeze
So now that the shorts realize the number doesn't matter, let's focus on what is important.
It really comes down to production consistency. As that improves, and if the past is any indication that it will, then we could see another big squeeze.
With 39M shares short, we could see the stock blister over $400 before the end of July.
The 39M number was where we stood at the end of May. The next time the number is updated will be after the close on 6/26 for shares short as of 6/15.
Beyond that there is another update that will reflect the true panic of shorts as the sales number is about to hit. On June 29, expect a healthy cover trade as brokers will have to report shares short and then release that data on July 11.
There was a big cover trade day on June 12, the day after the most recent report was released. The stock closed at $332 the day before and rallied to close at $342 as volume spiked to 22M shares.
The reason for that rally was the idea that the shorts were still holding their positions, or as we like to say, they were keeping their shorts on. Fearing further exposure they covered in a blizzard of volume only to see shares continue to surge.
What Lies Ahead
Of course there is an early August earnings release, and that will likely be a positive catalyst. I say this because of comments from management that led Wall Street to believe the company will be nearly breakeven or better.
Elon Musk has also suggested that a massive squeeze is coming and he has done this before… and been right. But what else could come to propel those shorts to cover?
The small version of the Model X is coming, but that is further down the road. So I thought about some more immediate potential catalysts for Tesla.
Partnerships
I floated the idea that Google parent Alphabet could make a strategic investment in the company. GOOGL has its own autonomous driving unit, which hasn't had much in the way of breakthrough announcements. Google Maps is already a big part of the Model 3 so there are reasons to believe that they come in and buy any future debt or equity offering.
Caterpillar or John Deere also make sense from a partnership perspective. The heavy equipment makers have taken note of the potential for greater efficiencies for their vehicles, so a partnership would make a lot of sense.
Another idea would be a supplier in the ecosystem stepping up. I mean how ironic would it be if Goodyear Tire made a financial commitment to TSLA to remain the supplier of tires for the next few years … basically the complete opposite of what Vilas Capital proposed.
My guess is that Elon Musk has an even bigger bunny in his hat. The last few times he talked about massive short covering it came to fruition. At the end of the day, that is what investors should really be paying attention to.
Disclosure: Brian Bolan is long TSLA in his trading and retirement account.
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Alphabet Inc. (GOOGL): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Still, you have to hand it to Vilas Capital and their CEO, CIO and CFA charter holder who went on a PR campaign to help increase the value of his puts. News outlets like Bloomberg have produced a fancy model to track the VIN's and ask buyers of the car to register it with them so they can more accurately forecast the production level. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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There was a big cover trade day on June 12, the day after the most recent report was released. Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - Jun 25, 2018 - Today, Zacks Investment Ideas feature highlights Features: TeslaTSLA , AlphabetGOOGL , CaterpillarCAT , DeereDE and Goodyear TireGT .
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Plus there is the idea of the final two weeks of the quarter likely to be the strongest so even if they just average 4K per week in those last two weeks the number balloons to 32K for the quarter. Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - Jun 25, 2018 - Today, Zacks Investment Ideas feature highlights Features: TeslaTSLA , AlphabetGOOGL , CaterpillarCAT , DeereDE and Goodyear TireGT .
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The end idea is the cars are coming and buyers are there. For Immediate Release Chicago, IL - Jun 25, 2018 - Today, Zacks Investment Ideas feature highlights Features: TeslaTSLA , AlphabetGOOGL , CaterpillarCAT , DeereDE and Goodyear TireGT . Still, you have to hand it to Vilas Capital and their CEO, CIO and CFA charter holder who went on a PR campaign to help increase the value of his puts.
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520f0c8f-aade-486d-8af4-2435e2030522
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721988.0
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2018-06-22 00:00:00 UTC
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Notable Friday Option Activity: ACOR, DE, HRTX
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https://www.nasdaq.com/articles/notable-friday-option-activity-acor-de-hrtx-2018-06-22
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Acorda Therapeutics Inc (Symbol: ACOR), where a total of 3,975 contracts have traded so far, representing approximately 397,500 underlying shares. That amounts to about 41.4% of ACOR's average daily trading volume over the past month of 959,970 shares. Particularly high volume was seen for the $16 strike put option expiring October 19, 2018 , with 1,516 contracts trading so far today, representing approximately 151,600 underlying shares of ACOR. Below is a chart showing ACOR's trailing twelve month trading history, with the $16 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 11,509 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 41.2% of DE's average daily trading volume over the past month, of 2.8 million shares. Especially high volume was seen for the $148 strike call option expiring July 20, 2018 , with 1,205 contracts trading so far today, representing approximately 120,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $148 strike highlighted in orange:
And Heron Therapeutics Inc (Symbol: HRTX) options are showing a volume of 6,680 contracts thus far today. That number of contracts represents approximately 668,000 underlying shares, working out to a sizeable 41.2% of HRTX's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $33 strike put option expiring July 20, 2018 , with 2,985 contracts trading so far today, representing approximately 298,500 underlying shares of HRTX. Below is a chart showing HRTX's trailing twelve month trading history, with the $33 strike highlighted in orange:
For the various different available expirations for ACOR options , DE options , or HRTX options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $16 strike put option expiring October 19, 2018 , with 1,516 contracts trading so far today, representing approximately 151,600 underlying shares of ACOR. Especially high volume was seen for the $148 strike call option expiring July 20, 2018 , with 1,205 contracts trading so far today, representing approximately 120,500 underlying shares of DE. Particularly high volume was seen for the $33 strike put option expiring July 20, 2018 , with 2,985 contracts trading so far today, representing approximately 298,500 underlying shares of HRTX.
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Below is a chart showing ACOR's trailing twelve month trading history, with the $16 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 11,509 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 41.2% of DE's average daily trading volume over the past month, of 2.8 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $148 strike highlighted in orange: And Heron Therapeutics Inc (Symbol: HRTX) options are showing a volume of 6,680 contracts thus far today.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Acorda Therapeutics Inc (Symbol: ACOR), where a total of 3,975 contracts have traded so far, representing approximately 397,500 underlying shares. Particularly high volume was seen for the $33 strike put option expiring July 20, 2018 , with 2,985 contracts trading so far today, representing approximately 298,500 underlying shares of HRTX. Below is a chart showing HRTX's trailing twelve month trading history, with the $33 strike highlighted in orange: For the various different available expirations for ACOR options , DE options , or HRTX options , visit StockOptionsChannel.com.
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Especially high volume was seen for the $148 strike call option expiring July 20, 2018 , with 1,205 contracts trading so far today, representing approximately 120,500 underlying shares of DE. Particularly high volume was seen for the $33 strike put option expiring July 20, 2018 , with 2,985 contracts trading so far today, representing approximately 298,500 underlying shares of HRTX. Below is a chart showing HRTX's trailing twelve month trading history, with the $33 strike highlighted in orange: For the various different available expirations for ACOR options , DE options , or HRTX options , visit StockOptionsChannel.com.
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721989.0
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2018-06-22 00:00:00 UTC
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Why Tesla Shorts Are Doomed
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https://www.nasdaq.com/articles/why-tesla-shorts-are-doomed-2018-06-22
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Make no mistake about it, the Tesla (TSLA) shorts are going to be covering. We saw the first wave of shorts cashing in on a recent share price tumble, but what followed was only the start of what could be an epic run.
The stock succumbed to a fabulous short ploy who called for bankruptcy in "a few months" - even though this was clearly a very low probability event. Still, you have to hand it to Vilas Capital and their CEO, CIO and CFA charter holder who went on a PR campaign to help increase the value of his puts.
That short term trade worked well for Vilas, but those that are short the stock are going to be feeling some pain soon. Let's take a look at the upcoming catalysts that will likely send shares of TSLA to new all time highs.
Car Sales Data
The shorts won't be helped if Tesla misses sales estimates. I know that flies in the face of common sense, but the fact is that TSLA has come up short of expectations far more than it has beaten the number.
Tesla announces quarterly car sales on or about July 6, 2018 - but the numbers don't really matter. To be clear, the numbers kind of matter, but we already know they are pretty good. They will show solid growth for all models, but that isn't the story.
The story is all about getting the Model 3 to production levels of roughly 5,000 per week. As we get to the final two weeks of June, the company is ramping up its efforts to make more cars and meet this goal. But let's face it, Wall Street will not punish them if they don't!
5,000 A Week
Whether or not 5,000 comes in June or July or August, people want a new TSLA. There is demand for these cars, far more than any other model being built (at these price points).
The end idea is the cars are coming and buyers are there. So when the company announces sales and does… or more likely doesn't reach that level, the shorts will scream 'bloody murder!'
What the shorts seem to have forgotten is that 5,000 a week is only a stepping stone to 7,500 a week and then 10,000 a week. But let's not get ahead of ourselves. It was only a few short months ago that the Model 3 was breaking 1,000 a week consistently.
Sales Estimates
I would tell you that Model 3 sales numbers are the be all and end all if that were true, but they are not. Each and every Model 3 TSLA makes in the year 2018 is basically already sold. They will not be able to satiate the demand for the car.
News outlets like Bloomberg have produced a fancy model to track the VIN's and ask buyers of the car to register it with them so they can more accurately forecast the production level. If you go by their estimates you will come to around 24K cars made this quarter… give or take.
That give or take is the idea that the model isn't perfect and the numbers change on a daily basis. Plus there is the idea of the final two weeks of the quarter likely to be the strongest so even if they just average 4K per week in those last two weeks the number balloons to 32K for the quarter.
In Transit
It is important to note that TSLA is conservative with how it counts cars as actually being sold. They have to be delivered to the owner with all the paperwork being properly filled out. Over the last several quarters the in transit number has been a few hundred to a few thousand.
This time around we should expect to see a number closer to 10K. Maybe not more than 10K, but something close to that level. Why is that?
Well with the production ramping up at the end of the month, it is rather unlikely that more than 10% of the cars made in the final week of the month will be counted as sales. The week before will also have a solid production number but we should only expect 75% of those to reach their final destination.
That in transit number from the prior quarter will help, but next quarter it will become MEANINGFUL .
Summer Squeeze
So now that the shorts realize the number doesn't matter, let's focus on what is important.
It really comes down to production consistency. As that improves, and if the past is any indication that it will, then we could see another big squeeze.
With 39M shares short, we could see the stock blister over $400 before the end of July.
The 39M number was where we stood at the end of May. The next time the number is updated will be after the close on 6/26 for shares short as of 6/15.
Beyond that there is another update that will reflect the true panic of shorts as the sales number is about to hit. On June 29, expect a healthy cover trade as brokers will have to report shares short and then release that data on July 11.
There was a big cover trade day on June 12, the day after the most recent report was released. The stock closed at $332 the day before and rallied to close at $342 as volume spiked to 22M shares.
The reason for that rally was the idea that the shorts were still holding their positions, or as we like to say, they were keeping their shorts on. Fearing further exposure they covered in a blizzard of volume only to see shares continue to surge.
What Lies Ahead
Of course there is an early August earnings release, and that will likely be a positive catalyst. I say this because of comments from management that led Wall Street to believe the company will be nearly breakeven or better.
Elon Musk has also suggested that a massive squeeze is coming and he has done this before… and been right. But what else could come to propel those shorts to cover?
The small version of the Model X is coming, but that is further down the road. So I thought about some more immediate potential catalysts for Tesla.
Partnerships
I floated the idea that Google parent Alphabet (GOOG) could make a strategic investment in the company. GOOG has its own autonomous driving unit, which hasn't had much in the way of breakthrough announcements. Google Maps is already a big part of the Model 3 so there are reasons to believe that they come in and buy any future debt or equity offering.
Caterpillar (CAT) or John Deere (DE) also make sense from a partnership perspective. The heavy equipment makers have taken note of the potential for greater efficiencies for their vehicles, so a partnership would make a lot of sense.
Another idea would be a supplier in the ecosystem stepping up. I mean how ironic would it be if Goodyear Tire (GT) made a financial commitment to TSLA to remain the supplier of tires for the next few years … basically the complete opposite of what Vilas Capital proposed.
My guess is that Elon Musk has an even bigger bunny in his hat. The last few times he talked about massive short covering it came to fruition. At the end of the day, that is what investors should really be paying attention to.
Disclosure: Brian Bolan is long TSLA in his trading and retirement account.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tesla, Inc. (TSLA): Free Stock Analysis Report
The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Still, you have to hand it to Vilas Capital and their CEO, CIO and CFA charter holder who went on a PR campaign to help increase the value of his puts. News outlets like Bloomberg have produced a fancy model to track the VIN's and ask buyers of the car to register it with them so they can more accurately forecast the production level. That short term trade worked well for Vilas, but those that are short the stock are going to be feeling some pain soon.
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There was a big cover trade day on June 12, the day after the most recent report was released. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Still, you have to hand it to Vilas Capital and their CEO, CIO and CFA charter holder who went on a PR campaign to help increase the value of his puts.
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Plus there is the idea of the final two weeks of the quarter likely to be the strongest so even if they just average 4K per week in those last two weeks the number balloons to 32K for the quarter. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Still, you have to hand it to Vilas Capital and their CEO, CIO and CFA charter holder who went on a PR campaign to help increase the value of his puts.
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The end idea is the cars are coming and buyers are there. Still, you have to hand it to Vilas Capital and their CEO, CIO and CFA charter holder who went on a PR campaign to help increase the value of his puts. That short term trade worked well for Vilas, but those that are short the stock are going to be feeling some pain soon.
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9e7b8219-84ca-4a81-825e-211b188472f5
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721990.0
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2018-06-22 00:00:00 UTC
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5 'Strong Buy' Artificial Intelligence Stocks
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https://www.nasdaq.com/articles/5-strong-buy-artificial-intelligence-stocks-2018-06-22
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The artificial-intelligence revolution is coming, whether you're ready or not. AI supporters believe that it has the potential to transform the world as we know it; Google CEO Sundar Pichai describes AI as "more profound than ... electricity or fire." Indeed, PricewaterhouseCoopers estimates that artificial intelligence could become a massive $70 billion market by 2020.
So which stocks are pushing the boundaries of technology and capitalizing on this booming industry?
Here we used TipRanks ' big-data analytics to pinpoint five AI stocks with big support from the Street. These stocks aren't all necessarily creating AI technology - some are simply using it in a way that sets them far apart from their peers. But all these stocks do boast a "Strong Buy" analyst consensus based only on the last three months of ratings.
Let's take a closer look at how these stocks are using AI now, and what this means for their future fortunes:
SEE ALSO: 10 Apple Products That Changed Everything (And 10 That Didn't)
Market value: $812.0 billion
TipRanks consensus price target: $1,260.91 (8% upside potential)
TipRanks consensus rating: Strong Buy
No list of artificial intelligence stocks is quite right without Alphabet ( GOOGL , $1,169.44). Its Google division constantly pushes AI to new and exciting places.
For example, a recent Bloomberg report has revealed that Google's Medical Brain unit is using AI to train machines to predict when patients will die. The Google tool uses self-learning neural networks to predict key outcomes including readmission and the length of hospital stay. This powerful data analysis can even be used to predict symptoms and disease, apparently with incredible accuracy.
Google's AI system is unique because of its ability to analyze even unorganized data. "In general, prior work has focused on a subset of features available in the EHR (electronic health record), rather than on all data available in an EHR, which includes clinical free-text notes, as well as large amounts of structured and semi-structured data," Google's report says.
Analysts currently have 23 buy-equivalent ratings versus just three holds. The bull camp includes Monness Crespi's Brian White ( view White's TipRanks profile ), who writes, "With sales up 19% per annum over the past four years, EPS turning in a 17% CAGR and a dominant position in search with a leadership in digital advertising, we believe Alphabet should trade at a healthy premium to the market and tech sector."
SEE ALSO: 25 Blue-Chip Stocks Mutual Fund Managers Love Most
Market value: $139.1 million
TipRanks consensus price target: $20.40 (125% upside potential)
TipRanks consensus rating: Strong Buy
While most of AI attention focuses on tech stocks, AI also has the potential to drive huge change in the world of healthcare and drug development.
"As technology continues to advance and evolve, we have a unique opportunity to ensure that augmented intelligence is used to benefit patients, physicians, and the broad health care community," reads the American Medical Association's first-ever AI policy.
One top-rated biotech stock making the most of these new opportunities is BioXcel Therapeutics ( BTAI , $9.08). BioXcel uses artificial intelligence to pinpoint prospective neuroscience and immuno-oncology drugs. Through AI, BioXcel can source promising failed or discontinued drug candidates. It can then apply these drugs to the treatment of different diseases or make small modifications to things such as the dosing pattern.
"Through this approach, which eschews de novo compound discovery, BioXcel endeavors to attain capital-efficient, cost-effective delivery of approved agents for areas of significant unmet need at a fraction ($50 - 100M) of the cost (over $2B) typically associated with the development of novel drugs," writes H.C. Wainwright's Raghuram Selvaraju ( view Selvaraju's TipRanks profile ). Indeed, the company already has two very promising late-stage pipeline candidates: BX501 (for prostate and pancreatic cancer) and BX701 (for dementia, schizophrenia and bipolar).
BTAI has received five back-to-back buy ratings from analysts in the past three months.
SEE ALSO: 5 "Strong Buy" Biotech Stocks to Buy Now
Market value: $46.5 billion
TipRanks consensus price target: $188.75 (33% upside potential)
TipRanks consensus rating: Strong Buy
From healthcare to agriculture, Deere ( DE , $142.01) is another unexpected name using artificial intelligence in creative new ways. According to a report by KeyBanc, technology acquired by John Deere could reduce chemical spraying volumes by up to 90%. That's a massive saving, both in terms of money and in terms of the environment.
So how did John Deere move into the world of big data?
For this initiative, DE snapped up computer-vision startup Blue River Technology for $305 million in September 2017. Blue River developed a smart robot capable of assessing whether a plant is a weed or a plant, then delivering the pesticide accordingly. So instead of assessing weeds vs crops on a field by field basis, farmers can now work plant by plant.
This is just one AI-powered service that John Deere now offers to farmers. For example, farmers can also use the company's big-data analytics to decide where to plant crops or how to use their machinery most effectively. The company's online portal gathers data from sensors attached to machines as well as soil probes and external datasets.
From a Street perspective, DE is a top stock to own right now. The company has received no less than nine consecutive buy ratings in the last three months.
"We think the slow recovery in Deere's large agricultural business could accelerate in fiscal year 2019 with higher grain prices, which have a favorable set-up entering the growing season," comments UBS analyst Steven Fisher ( view Fisher's TipRanks profile ).
SEE ALSO: The 18 Best Stocks to Buy for the Rest of 2018
Market value: $771.0 billion
TipRanks consensus price target: $113.87 (13% upside potential)
TipRanks consensus rating: Strong Buy
AI is essential to fulfilling several goals for tech-giant Microsoft ( MSFT , $101.14). Back in 2016, CEO Satya Nadella stated: "At Microsoft, we are focused on empowering both people and organizations, by democratizing access to intelligence to help solve our most pressing challenges. To do this, we are infusing AI into everything we deliver across our computing platforms and experiences."
Indeed, Microsoft offers the triple-whammy of AI products and solutions: an AI platform for developers; AI solutions for enterprises; and intelligent applications for everyday life like Microsoft Translator and smart PA Cortana. In fact, Cortana can do everything from booking a flight to ordering a pizza to "telling you something weird."
As you would expect, Microsoft is investing heavily in AI to stay ahead of the pack. No fewer than 8,000 employees - including everyone from engineers to researchers - are beavering away on AI products. The latest news is that Microsoft is on a hiring splurge for engineers to work on a new AI chip for the cloud. This would place Microsoft in direct competition with chip giant's Nvidia's ( NVDA ) graphics processing unit as well as Google's tensor processing unit. These chips can make intelligent predictions based on extremely complex data patterns.
This "Strong Buy" stock boasts 16 recent buy ratings vs just 1 hold rating and 1 sell rating.
"Public cloud adoption, large distribution channels and installed customer base, and improving margins support a path to... a $1 trillion market cap for (Microsoft)," top Morgan Stanley analyst Keith Weiss ( view Weiss' TipRanks profile ) recently wrote. He has a bullish $130 price target on MSFT shares.
SEE ALSO: 53 Best Dividend Stocks for 2018 and Beyond
Market value: $100.4 billion
TipRanks consensus price target: $149.16 (10% upside potential)
TipRanks consensus rating: Strong Buy
Cloud computing giant Salesforce.com ( CRM , $135.87) offers customer relationship management to over 100,000 customers. It recently made a big leap into AI with the aptly named Einstein Analytics. "With the new AI-powered Einstein Discovery, Einstein Analytics apps can automatically analyze billions of data combinations to surface predictive insights and prescriptive recommendations," CRM said about Einstein's launch.
Einstein has proved very successful for CRM so far, with a notably rapid uptake. Following CRM's first-quarter earnings, five-star Monness Crespi analyst Brian White pointed out that "on the AI front, Einstein is now providing nearly 2 billion predictions each day and double the 1 billion in 4QFY18." Indeed, in March, Salesforce announced two big partnerships - one with International Business Machines' (IBM) powerful AI platform Watson and the other with Amazon Connect (the new cloud-based contact center for AWS).
"Given Salesforce's leadership position in the SaaS market with an expanding portfolio in the midst of a strong secular trend around the cloud, combined with a history of strong growth and a predictable subscription-based model, we believe investors will drive Salesforce's valuation higher," White writes. He has a buy rating on CRM and sees the stock spiking to $158.
SEE ALSO: 8 Tech Stocks That Pay You to Own Them
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Back in 2016, CEO Satya Nadella stated: "At Microsoft, we are focused on empowering both people and organizations, by democratizing access to intelligence to help solve our most pressing challenges. Indeed, in March, Salesforce announced two big partnerships - one with International Business Machines' (IBM) powerful AI platform Watson and the other with Amazon Connect (the new cloud-based contact center for AWS). AI supporters believe that it has the potential to transform the world as we know it; Google CEO Sundar Pichai describes AI as "more profound than ... electricity or fire."
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SEE ALSO: 25 Blue-Chip Stocks Mutual Fund Managers Love Most Market value: $139.1 million TipRanks consensus price target: $20.40 (125% upside potential) TipRanks consensus rating: Strong Buy While most of AI attention focuses on tech stocks, AI also has the potential to drive huge change in the world of healthcare and drug development. SEE ALSO: 5 "Strong Buy" Biotech Stocks to Buy Now Market value: $46.5 billion TipRanks consensus price target: $188.75 (33% upside potential) TipRanks consensus rating: Strong Buy From healthcare to agriculture, Deere ( DE , $142.01) is another unexpected name using artificial intelligence in creative new ways. SEE ALSO: 53 Best Dividend Stocks for 2018 and Beyond Market value: $100.4 billion TipRanks consensus price target: $149.16 (10% upside potential) TipRanks consensus rating: Strong Buy Cloud computing giant Salesforce.com ( CRM , $135.87) offers customer relationship management to over 100,000 customers.
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Let's take a closer look at how these stocks are using AI now, and what this means for their future fortunes: SEE ALSO: 10 Apple Products That Changed Everything (And 10 That Didn't) Market value: $812.0 billion TipRanks consensus price target: $1,260.91 (8% upside potential) TipRanks consensus rating: Strong Buy No list of artificial intelligence stocks is quite right without Alphabet ( GOOGL , $1,169.44). SEE ALSO: 25 Blue-Chip Stocks Mutual Fund Managers Love Most Market value: $139.1 million TipRanks consensus price target: $20.40 (125% upside potential) TipRanks consensus rating: Strong Buy While most of AI attention focuses on tech stocks, AI also has the potential to drive huge change in the world of healthcare and drug development. SEE ALSO: 5 "Strong Buy" Biotech Stocks to Buy Now Market value: $46.5 billion TipRanks consensus price target: $188.75 (33% upside potential) TipRanks consensus rating: Strong Buy From healthcare to agriculture, Deere ( DE , $142.01) is another unexpected name using artificial intelligence in creative new ways.
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SEE ALSO: 5 "Strong Buy" Biotech Stocks to Buy Now Market value: $46.5 billion TipRanks consensus price target: $188.75 (33% upside potential) TipRanks consensus rating: Strong Buy From healthcare to agriculture, Deere ( DE , $142.01) is another unexpected name using artificial intelligence in creative new ways. AI supporters believe that it has the potential to transform the world as we know it; Google CEO Sundar Pichai describes AI as "more profound than ... electricity or fire." Indeed, PricewaterhouseCoopers estimates that artificial intelligence could become a massive $70 billion market by 2020.
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721991.0
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2018-06-19 00:00:00 UTC
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Tuesday Sector Laggards: Industrial, Materials
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https://www.nasdaq.com/articles/tuesday-sector-laggards-industrial-materials-2018-06-19
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Looking at the sectors faring worst as of midday Tuesday, shares of Industrial companies are underperforming other sectors, showing a 1.4% loss. Within that group, Deere & Co. (Symbol: DE) and Boeing Co. (Symbol: BA) are two large stocks that are lagging, showing a loss of 3.6% and 3.6%, respectively. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is down 1.9% on the day, and down 2.20% year-to-date. Deere & Co., meanwhile, is down 8.59% year-to-date, and Boeing Co. is up 17.16% year-to-date. Combined, DE and BA make up approximately 10.3% of the underlying holdings of XLI.
The next worst performing sector is the Materials sector, showing a 1.4% loss. Among large Materials stocks, Mosaic Co (Symbol: MOS) and Eastman Chemical Co (Symbol: EMN) are the most notable, showing a loss of 4.4% and 3.2%, respectively. One ETF closely tracking Materials stocks is the Materials Select Sector SPDR ETF ( XLB ), which is down 1.8% in midday trading, and down 2.48% on a year-to-date basis. Mosaic Co , meanwhile, is up 9.16% year-to-date, and Eastman Chemical Co is up 13.83% year-to-date. Combined, MOS and EMN make up approximately 4.3% of the underlying holdings of XLB.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, two sectors are up on the day, while seven sectors are down.
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, DE and BA make up approximately 10.3% of the underlying holdings of XLI. Combined, MOS and EMN make up approximately 4.3% of the underlying holdings of XLB. Looking at the sectors faring worst as of midday Tuesday, shares of Industrial companies are underperforming other sectors, showing a 1.4% loss.
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Looking at the sectors faring worst as of midday Tuesday, shares of Industrial companies are underperforming other sectors, showing a 1.4% loss. Within that group, Deere & Co. (Symbol: DE) and Boeing Co. (Symbol: BA) are two large stocks that are lagging, showing a loss of 3.6% and 3.6%, respectively. Deere & Co., meanwhile, is down 8.59% year-to-date, and Boeing Co. is up 17.16% year-to-date.
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Looking at the sectors faring worst as of midday Tuesday, shares of Industrial companies are underperforming other sectors, showing a 1.4% loss. Within that group, Deere & Co. (Symbol: DE) and Boeing Co. (Symbol: BA) are two large stocks that are lagging, showing a loss of 3.6% and 3.6%, respectively. Deere & Co., meanwhile, is down 8.59% year-to-date, and Boeing Co. is up 17.16% year-to-date.
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Looking at the sectors faring worst as of midday Tuesday, shares of Industrial companies are underperforming other sectors, showing a 1.4% loss. Within that group, Deere & Co. (Symbol: DE) and Boeing Co. (Symbol: BA) are two large stocks that are lagging, showing a loss of 3.6% and 3.6%, respectively. Deere & Co., meanwhile, is down 8.59% year-to-date, and Boeing Co. is up 17.16% year-to-date.
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07ff789c-771a-45e9-9eaf-4c53fcd74268
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721992.0
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2018-06-18 00:00:00 UTC
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Deere (DE) Up 2.3% Since Earnings Report: Can It Continue?
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DE
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https://www.nasdaq.com/articles/deere-de-up-2.3-since-earnings-report%3A-can-it-continue-2018-06-18
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nan
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nan
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A month has gone by since the last earnings report for Deere & CompanyDE . Shares have added about 2.3% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is DE due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Deere Q2 Earnings Lag, Sales Meet Estimates, View Up
Deere reported second-quarter fiscal 2018 (ended Apr 29, 2018) adjusted earnings of $3.14 per share, which increased 26% year over year. The bottom line missed the Zacks Consensus Estimate of $3.33.
Including tax adjustments related to the tax reform, the company reported earnings of $3.67 per share compared to $2.50 per share recorded in the year-ago quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $9.75 billion, rising 34% year over year. Revenues came in line with the Zacks Consensus Estimate.
Deere's acquisition of the Wirtgen Group in December 2017 added 12% to net sales in the fiscal second quarter. Sales also included a favorable currency-translation impact of 3% in the quarter. Region wise, equipment net sales increased 27% in the United States and Canada, and 45% in the rest of the world. Total net sales (including financial services and others) came in at $10.7 billion, up 29% year over year.
Operational Update
Cost of sales in the quarter increased 35% year over year to $7.3 billion. Gross profit in the reported quarter came in at $2.41 billion, advancing 32% year over year. Selling, administrative and general expenses flared up 20% to $939 million. Operating profit increased to $1.49 billion from $1.28 billion reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales were up 22% year over year to $7.05 billion, primarily driven by higher shipment volumes and positive currency-translation impact. Operating profit at the segment climbed 5% year over year to $1.06 billion, driven by higher shipment volumes, partially offset by higher research and development expenses and production costs.
Construction & Forestry sales surged 84% year over year to $2.70 billion, driven by higher shipment volumes and the favorable impact of currency translation. This segment reported operating profit of $259 million, up a whopping 133% year over year. The Wirtgen acquisition contributed operating profit of $41 million for the quarter. Excluding this buyout, the improvements primarily stemmed from higher shipment volumes and lower warranty expenses, partially offset by elevated production costs.
Net revenues at Deere's Financial Services division totaled $795 million in the reported quarter, up 11% year over year. The segment's operating profit came in at $179 million, up 13% year over year. Net income at the segment was $104 million, flat year over year.
Financial Update
Deere reported cash and cash equivalents of $4.20 billion at the end of the fiscal second quarter as against $4.53 billion at the end of the prior-year quarter. Cash used in operations was $1,222 million during the six-month period ended Apr 29, 2018, compared with cash inflow of $164 million in the comparable period last year. At the quarter end, long-term borrowing totaled $26.3 billion, up from $23.3 billion at the end of the year-ago quarter.
Looking Ahead
Deere raised its total equipment sales growth outlook for fiscal 2018 to around 30%, year over year, from the prior guidance of about 29%. The company expects its sales to be up 35% in third-quarter fiscal 2018 compared with the year-ago period. Deere stated that the Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 18% for the fiscal third quarter. The forecast also includes a positive foreign-currency translation impact of about 1% for the fiscal and for the fiscal third quarter. For fiscal 2018, Deere expects net sales to increase about 26% year over year and projects net income of about $2.3 billion.
Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 14% in fiscal 2018, including a positive currency-translation effect of about 1%. Industry sales for agricultural equipment in the United States and Canada are estimated to be up about 10% for the fiscal, aided by elevated demand for large equipment.
In the EU28 region, sales are projected to be up about 5% backed by improving conditions in the dairy and livestock sectors. In South America, industry sales of tractors and combines are estimated to be flat to up 5%, aided by strength in Brazil.
The company predicts global sales for Construction & Forestry equipment to be up a massive 83% for fiscal 2018, including a positive currency-translation effect of about 1%. The Wirtgen acquisition is likely to add about 56% to the sales for the segment. The outlook is based on global economic growth, including higher housing starts in the United States, and an improved oil and gas sector. In forestry, global industry sales are projected to be up about 10%.
The outlook for net income from Financial Services has been set at $800 million for fiscal 2018, which includes about $229 million of favorable changes associated with the recent tax reform. The outlook reflects a higher average portfolio and lower losses on lease residual values, partially offset by less-favorable financing spreads, and elevated selling, administrative and general expenses.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been eight revisions higher for the current quarter. Last month, the consensus estimate has shifted by 7.1% due to these changes.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
VGM Scores
At this time, DE has an average Growth Score of C, however its Momentum is doing a lot better with an A. The stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for momentum investors while also being suitable for those looking for value and to a lesser degree growth.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, DE has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A month has gone by since the last earnings report for Deere & CompanyDE . Shares have added about 2.3% in that time frame. Will the recent positive trend continue leading up to its next earnings release, or is DE due for a pullback?
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Operating profit at the segment climbed 5% year over year to $1.06 billion, driven by higher shipment volumes, partially offset by higher research and development expenses and production costs. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote VGM Scores At this time, DE has an average Growth Score of C, however its Momentum is doing a lot better with an A. A month has gone by since the last earnings report for Deere & CompanyDE .
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Deere Q2 Earnings Lag, Sales Meet Estimates, View Up Deere reported second-quarter fiscal 2018 (ended Apr 29, 2018) adjusted earnings of $3.14 per share, which increased 26% year over year. For fiscal 2018, Deere expects net sales to increase about 26% year over year and projects net income of about $2.3 billion. A month has gone by since the last earnings report for Deere & CompanyDE .
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Deere Q2 Earnings Lag, Sales Meet Estimates, View Up Deere reported second-quarter fiscal 2018 (ended Apr 29, 2018) adjusted earnings of $3.14 per share, which increased 26% year over year. For fiscal 2018, Deere expects net sales to increase about 26% year over year and projects net income of about $2.3 billion. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote VGM Scores At this time, DE has an average Growth Score of C, however its Momentum is doing a lot better with an A.
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51ab4143-cdbb-4055-a598-a44c45a7eb10
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721993.0
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2018-06-15 00:00:00 UTC
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DE Makes Notable Cross Below Critical Moving Average
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DE
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https://www.nasdaq.com/articles/de-makes-notable-cross-below-critical-moving-average-2018-06-15
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nan
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nan
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $146.65, changing hands as low as $145.69 per share. Deere & Co. shares are currently trading down about 2.6% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $112.87 per share, with $175.26 as the 52 week high point - that compares with a last trade of $146.16.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $146.65, changing hands as low as $145.69 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $112.87 per share, with $175.26 as the 52 week high point - that compares with a last trade of $146.16. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $146.65, changing hands as low as $145.69 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $112.87 per share, with $175.26 as the 52 week high point - that compares with a last trade of $146.16. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $146.65, changing hands as low as $145.69 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $112.87 per share, with $175.26 as the 52 week high point - that compares with a last trade of $146.16. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $146.65, changing hands as low as $145.69 per share. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Co. shares are currently trading down about 2.6% on the day.
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647d0ae8-2e23-4a6b-a313-b5707bff1b76
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721994.0
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2018-06-14 00:00:00 UTC
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MOO, NTR, ZTS, DE: ETF Outflow Alert
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DE
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https://www.nasdaq.com/articles/moo-ntr-zts-de-etf-outflow-alert-2018-06-14
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $103.1 million dollar outflow -- that's a 10.6% decrease week over week (from 15,100,000 to 13,500,000). Among the largest underlying components of MOO, in trading today Nutrien Ltd.HARES (Symbol: NTR) is up about 0.6%, Zoetis Inc (Symbol: ZTS) is up about 0.3%, and Deere & Co. (Symbol: DE) is lower by about 0.8%. For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average:
Looking at the chart above, MOO's low point in its 52 week range is $54.42 per share, with $65.86 as the 52 week high point - that compares with a last trade of $64.29. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $54.42 per share, with $65.86 as the 52 week high point - that compares with a last trade of $64.29. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $54.42 per share, with $65.86 as the 52 week high point - that compares with a last trade of $64.29. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $103.1 million dollar outflow -- that's a 10.6% decrease week over week (from 15,100,000 to 13,500,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $103.1 million dollar outflow -- that's a 10.6% decrease week over week (from 15,100,000 to 13,500,000). For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $54.42 per share, with $65.86 as the 52 week high point - that compares with a last trade of $64.29. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $54.42 per share, with $65.86 as the 52 week high point - that compares with a last trade of $64.29. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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ef70c325-33a9-444b-9bb4-ce21b68dba66
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721995.0
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2018-06-14 00:00:00 UTC
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Noteworthy Thursday Option Activity: DE, EOG, JNJ
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-de-eog-jnj-2018-06-14
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 15,302 contracts have traded so far, representing approximately 1.5 million underlying shares. That amounts to about 53% of DE's average daily trading volume over the past month of 2.9 million shares. Especially high volume was seen for the $167.50 strike call option expiring June 29, 2018 , with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $167.50 strike highlighted in orange:
EOG Resources, Inc. (Symbol: EOG) saw options trading volume of 16,752 contracts, representing approximately 1.7 million underlying shares or approximately 49.4% of EOG's average daily trading volume over the past month, of 3.4 million shares. Particularly high volume was seen for the $105 strike put option expiring January 17, 2020 , with 7,500 contracts trading so far today, representing approximately 750,000 underlying shares of EOG. Below is a chart showing EOG's trailing twelve month trading history, with the $105 strike highlighted in orange:
And Johnson & Johnson (Symbol: JNJ) options are showing a volume of 30,013 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 48.4% of JNJ's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $125 strike put option expiring June 15, 2018 , with 7,501 contracts trading so far today, representing approximately 750,100 underlying shares of JNJ. Below is a chart showing JNJ's trailing twelve month trading history, with the $125 strike highlighted in orange:
For the various different available expirations for DE options , EOG options , or JNJ options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $167.50 strike call option expiring June 29, 2018 , with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of DE. Particularly high volume was seen for the $105 strike put option expiring January 17, 2020 , with 7,500 contracts trading so far today, representing approximately 750,000 underlying shares of EOG. Particularly high volume was seen for the $125 strike put option expiring June 15, 2018 , with 7,501 contracts trading so far today, representing approximately 750,100 underlying shares of JNJ.
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Especially high volume was seen for the $167.50 strike call option expiring June 29, 2018 , with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $167.50 strike highlighted in orange: EOG Resources, Inc. (Symbol: EOG) saw options trading volume of 16,752 contracts, representing approximately 1.7 million underlying shares or approximately 49.4% of EOG's average daily trading volume over the past month, of 3.4 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 15,302 contracts have traded so far, representing approximately 1.5 million underlying shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 15,302 contracts have traded so far, representing approximately 1.5 million underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $167.50 strike highlighted in orange: EOG Resources, Inc. (Symbol: EOG) saw options trading volume of 16,752 contracts, representing approximately 1.7 million underlying shares or approximately 49.4% of EOG's average daily trading volume over the past month, of 3.4 million shares. Below is a chart showing JNJ's trailing twelve month trading history, with the $125 strike highlighted in orange: For the various different available expirations for DE options , EOG options , or JNJ options , visit StockOptionsChannel.com.
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Especially high volume was seen for the $167.50 strike call option expiring June 29, 2018 , with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $167.50 strike highlighted in orange: EOG Resources, Inc. (Symbol: EOG) saw options trading volume of 16,752 contracts, representing approximately 1.7 million underlying shares or approximately 49.4% of EOG's average daily trading volume over the past month, of 3.4 million shares. Below is a chart showing JNJ's trailing twelve month trading history, with the $125 strike highlighted in orange: For the various different available expirations for DE options , EOG options , or JNJ options , visit StockOptionsChannel.com.
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d3d13fa9-f6d9-4e14-a4c8-b3a58339bd1d
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721996.0
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2018-06-08 00:00:00 UTC
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7 Killer Stock Picks for the Second Half of 2018
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DE
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https://www.nasdaq.com/articles/7-killer-stock-picks-for-the-second-half-of-2018-2018-06-08
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The first half of 2018 hasn't been easy. And there's no promise that the second half of the year will be any easier. Far from it. Market commentators still can't decide whether the bull market is here to stay or whether a bear market is lurking just around the corner.
Add in a number of turbulent political factors - from potential trade tariffs to an unstable Europe and shifting relations with North Korea - and the situation becomes even stickier. But help is at hand.
Here, I turned to the Street to see what top stock for 2018 the Street's top analysts are betting on for the second half of the year. I used TipRanks' stock screener to pinpoint stocks that tick the following boxes: a Strong Buy top analyst consensus rating, and big upside potential from the current share price to the top analyst average price target.
This is based only on ratings from the last three months. And by cutting out underperforming analysts we can be sure that we are only following the advice of analysts who consistently get it right. In these rocky times - that's pretty crucial.
Sell 'Super Stocks' When You See THIS
So let's take a closer look at these seven top stock picks now:
Top Stock for 2018: General Motors (GM)
Source: GM
While Tesla, Inc. (NASDAQ: TSLA ) may take up most of the attention on the auto-front, it is worth keeping a close eye on old stalwart General Motors Company (NYSE: GM ). The company has just announced a massive new investment by the billion-dollar SoftBank Vision fund. The fund will now invest $2.25 billion in GM's self-driving Cruise unit. Following the investment, GM will also dedicate a further $1.1 billion to GM Cruise Holdings LLC.
Ultimately the goal is that the unit can reach commercialization at scale in 2019. "Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion" commented GM CEO Mary Barra. Meanwhile, SoftBank added that it is impressed by the progress made by the unit while "the GM Cruise approach of a fully integrated hardware and software stack gives it a unique competitive advantage."
So far the Street has reacted positively to the news. Top-rated JP Morgan analyst Ryan Brinkman called the investment "positive on a number of fronts." He describes the investment as "putting a stake in the ground relative to the value of Cruise" because it shows "just how inexpensive GM's core automotive operations really are." Brinkman sees the stock spiking to $58 in the coming months (32% upside potential).
Overall GM has received seven back-to-back buy ratings from the Street in the last three months. These ratings come with a $53 average price target (22% upside potential).
Top Stock for 2018: Loxo Oncology (LOXO)
Source: Shutterstock
This Triple-A rated biotech is buzzing right now. In the last week, Loxo Oncology, Inc. (NASDAQ: LOXO ) has received no less than seven buy ratings from the Street. These analysts are cheering positive results from Phase 1 clinical trials. The biotech revealed that its experimental cancer drug LOXO-292 shrunk 77% of RET-fusion positive cancers- an incredibly impressive result.
"The durability of both [overall response rate] and stable disease within each of these subgroups remains impressive - and the almost-too-good-to-be-true safety/tolerability profile confirms on-target selectivity while further-distancing LOXO-292 on the competitive differentiation front," stated five-star Stifel analyst Stephen Willey .
He reiterated his LOXO Buy rating on June 4 while ramping up his price target 18% to $225. From current levels, this indicates 22% further upside potential.
5 Market-Beating Stocks for Low-Risk Investors
At the same time, Morgan Stanley's Matthew Harrison boosted his peak sales prediction for LOXO-292 to $1 billion up from $700 million previously. Our data shows that LOXO has 100% support from the Street right now. These analysts have an average price target on the stock of $219 (19% upside potential).
Top Stock for 2018: Deere (DE)
Source: Ford8n via Flickr (Modified)
If you think of a tractor, you think of John Deere. And now its manufacturer, the world-leading tractor maker Deere & Company (NYSE: DE ), is poised to soar. If we look at the Street, we can see a triple whammy of recent rating upgrades from UBS, Evercore ISI and Merrill Lynch. So what's driving this bullish shift in sentiment? Three words: higher grain prices.
"We think the slow recovery in Deere's large agricultural business could accelerate in fiscal year 2019 with higher grain prices, which have a favorable set-up entering the growing season," said UBS analyst Steven Fisher in a note on May 24. "We think higher grain prices would stimulate a recovery in North American high-horsepower tractors, which have been declining for five years."
And good news for shareholders, Fisher is also optimistic about the chance of a dividend raise to reflect stronger earnings. He is now anticipating a 30% payout ratio for fiscal 2018 (up 21%) with $1.25 billion for share buybacks.
In total Deere now boasts eight buy ratings from analysts in the last three months. So no hold or sell ratings here. With shares now trading at $151, the average analyst price target works out at 25% upside potential.
Top Stock for 2018: TG Therapeutics (TGTX)
Source: Shutterstock
TG Therapeutics, Inc. (NASDAQ: TGTX ) is a novel biopharma developing treatments for B-cell malignancies and autoimmune diseases. Shares are popping over 10% right now following stellar data from ongoing Phase 2 clinical trials. The company is currently testing PI3K delta inhibitor umbralisib (TGR-1202) for cancers that originate in the blood.
"We are maintaining our Strong Buy rating" writes top-rated Raymond James analyst Reni Benjamin . "Umbralisib demonstrated compelling efficacy in BTK or PI3Kδ intolerant CLL patients." He continues: "With the Phase III UNITY-CLL study approaching an inflection point in the coming months, the potential to create value in the multi-billion dollar MS market, and a pro forma cash position of $105 million, we continue to recommend TGTX shares to long-term oriented, risk-tolerant investors."
His rating comes without a price target. However, five-star H.C. Wainwright analyst Edward White has just reiterated his Buy rating with a $38 price target. Prepare to be blown away! Given that the stock is currently trading at $15, his target suggests huge upside potential of 155%. White explains that he arrives at this figure based on probabilities of success coupled with "the net present value of our revenue forecast through 2026."
6 Elite Breakout Stocks and How You Can Spot Mega Moves
In total, three analysts have published recent buy ratings on TGTX.
Top Stock for 2018: LogMeIn (LOGM)
Source: Shutterstock
LogMeIn, Inc. (NASDAQ: LOGM ) shares have 'significant upside' right now. Shares are trading at a steep discount of $108, down from $133 in February. So says five-star Piper Jaffray analyst Alex Zukin . He has just returned from management meetings with renewed confidence in the company's outlook. LogMeIn's platform already provides subscription-based remote access and admin software to two million daily users.
For Zukin, share prices are now at "compelling" levels. He sees big upside potential on the horizon due to "consistent beat and raise execution, potential for accelerating revenue growth, and a multiple re-rating in line with our peer group."
Encouragingly, Zukin sees the company's product and go-to-market changes paying off in 2H18 with increased bookings.
Similarly, Mizuho Securities' Abhey Lamba chimes in, "We think mgmt. guidance remains conservative with numbers likely to be walked higher over the course of 2018. Maintain Buy rating and $145 PT."
Over the last three months, the stock has received five consecutive buy ratings from the Street. The $139 average price target equates to 29% upside potential.
Top Stock for 2018: Delta Airlines (DAL)
Source: Shutterstock
Don't be distracted about the news of a dead dog during a layover. Warren Buffett's favorite airline stock Delta Air Lines, Inc. (NYSE: DAL ) is also a killer stock pick for 2H18.
Top Imperial Capital analyst Michael Derchin believes DAL is on track to up its fiscal 2018 revenue outlook. This is due to three key catalysts: 1) strong pricing power in key domestic hubs 2) improving business yields; and 3) impressive international results. With this in mind, he etched up his price target $2 to $70 (27% upside potential). As for higher oil prices- a key concern for airlines- this hasn't offset Derchin's revenue bullishness (hence the price target rise).
In fact, the CEO of Delta has argued that DAL actually stands to benefit from a pricier gas position. When oil was at just $30 "it created a lot of dysfunctional behavior," said CEO Ed Bastian. This included flooding the market with cheap tickets.
"I don't think that fuel prices, for example, are sustainable over time in the ultra low-cost markets," Bastian said at a conference recently. "Fuel prices have jumped 50 percent in the last year. It's causing a big impact on their business model and something that the bigger carriers, the more premium carriers, can actually afford and can invest against to be able to get the pricing where it needs to be."
My Secret to Finding High-Growth Stocks for Short-Term Profits
Indeed, our data show that 100% of analysts are bullish on DAL right now. If we break this down, 8 analysts have published recent DAL buy ratings with an average price target of $74. This suggests huge upside potential of 35%.
Top Stock for 2018: Dollar General (DG)
Source: Shutterstock
Leading US discount retailer Dollar General Corporation (NYSE: DG ) is itself trading on the cheap right now. But if you are looking to make a savvy gain this is a pullback worth buying. Top-rated Oppenheimer analyst Rupesh Parikh has just reaffirmed his top pick status on DG:
"We continue to rank DG as a top pick, and would take advantage of the pullback. As the year progresses, we believe delivery of financial guidance and potentially better sentiment toward the space could help to drive shares higher."
He believes shares should rise 19% to $108 up from $91 currently. More specifically he still feels comfortable with management's targeted double-digit bottom line delivery for fiscal 2019.
"This level of bottom-line growth remains a positive outlier in the space" points out Parikh. And right now the current share price has discounted this attractive bottom-line earnings potential.
In fact, the Street is modeling for even higher share growth. The average top analyst price target is $111, with both Morgan Stanley and JP Morgan aiming for shares of $116 (27% upside potential). Overall this 'Strong Buy' stock has received six straight buy ratings from top analysts in the last three months.
TipRanks offers investors the latest insight into eight different sectors by tracking the activity of 4,700 analysts, 5,000 financial bloggers and even 37,000 corporate insiders. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.
Compare Brokers
The post 7 Killer Stock Picks for the Second Half of 2018 appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, SoftBank added that it is impressed by the progress made by the unit while "the GM Cruise approach of a fully integrated hardware and software stack gives it a unique competitive advantage." "We think the slow recovery in Deere's large agricultural business could accelerate in fiscal year 2019 with higher grain prices, which have a favorable set-up entering the growing season," said UBS analyst Steven Fisher in a note on May 24. Market commentators still can't decide whether the bull market is here to stay or whether a bear market is lurking just around the corner.
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I used TipRanks' stock screener to pinpoint stocks that tick the following boxes: a Strong Buy top analyst consensus rating, and big upside potential from the current share price to the top analyst average price target. Top Stock for 2018: TG Therapeutics (TGTX) Source: Shutterstock TG Therapeutics, Inc. (NASDAQ: TGTX ) is a novel biopharma developing treatments for B-cell malignancies and autoimmune diseases. Market commentators still can't decide whether the bull market is here to stay or whether a bear market is lurking just around the corner.
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I used TipRanks' stock screener to pinpoint stocks that tick the following boxes: a Strong Buy top analyst consensus rating, and big upside potential from the current share price to the top analyst average price target. The average top analyst price target is $111, with both Morgan Stanley and JP Morgan aiming for shares of $116 (27% upside potential). Market commentators still can't decide whether the bull market is here to stay or whether a bear market is lurking just around the corner.
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Market commentators still can't decide whether the bull market is here to stay or whether a bear market is lurking just around the corner. Add in a number of turbulent political factors - from potential trade tariffs to an unstable Europe and shifting relations with North Korea - and the situation becomes even stickier. I used TipRanks' stock screener to pinpoint stocks that tick the following boxes: a Strong Buy top analyst consensus rating, and big upside potential from the current share price to the top analyst average price target.
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d739a74b-0d76-4068-872e-a0971efc4cc8
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721997.0
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2018-06-08 00:00:00 UTC
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Time to Get Greedy With Deere & Company Stock
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DE
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https://www.nasdaq.com/articles/time-get-greedy-deere-company-stock-2018-06-08
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nan
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nan
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Like its peer Caterpillar (NYSE: CAT) , Deere & Company (NYSE: DE) has seen its stock decline in 2018. While end market conditions are improving and both companies raised guidance, the market has decided to take a dim view of their prospects. In Caterpillar's case, I think the market is overly worried by management's commentary on rising raw material prices, and a similar argument applies to Deere. Let's take a look at why it's time to get greedy with Deere stock.
DE data by YCharts
3 reasons to like Deere's stock
As you can see in the chart above, it's been a good two months for both stocks, but they are both slightly down on a year-to-date basis at the time of this writing. In Deere's case, I want to present three arguments for why investors should still be optimistic:
Deere's near-term end markets are clearly improving.
Valuation remains attractive on a cyclically adjusted basis.
Deere could have more upside from a potential rise in key crop prices.
Improving end markets
Deere's key agriculture and construction end markets are clearly improving in 2018, and the company's recent second-quarter earnings report only served to confirm positive trends.
The agriculture and turf segment's profits (which accounted for 68% of total profits in the first six months) are forecast to increase 14% in 2018, compared to a 9% increase in 2017 -- but it's the composition of the revenue growth that really matters. For the first time in five years, Deere's agriculture machinery sales in the U.S. and Canada -- its core end markets -- are expected to increase. On the second-quarter earnings call, management maintained its guidance for a 10% increase in agriculture and turf sales growth in 2018. Deere started the year expecting 5%-10%.
Moreover, according to Brent Norwood, Deere's manager of investor communications, the increase is being driven by replacement demand: "Replacement demand continued to drive sales as customer cite the need for increased productivity, updated technology and equipment within its warranty period. "
In other words, the cyclical pick-up in demand isn't yet being driven by any improvement in crop prices or farmer income -- suggesting there is potential for more upside with any improvement in the prices of crops such as corn, wheat, soy, and cotton.
Deere's construction and forestry segment (13.7% of profits in the first half of the year) is also set for a strong 2018. Caterpillar increased its 2018 profit per share guidance by 24% in its first-quarter earnings presentation, and its construction industries segment is set for a particularly good 2018 -- sales are up 38% in the first-quarter. Meanwhile, Deere hiked its forecast for construction and forestry sales growth in 2018 to 83% from 80%.
Much of that growth will come from the Wirtgen acquisition . Nevertheless, even excluding Wirtgen and foreign currency movements, Deere's construction and forestry sales are expected to grow 26% in 2018 -- an improvement on the previously forecast 22% increase.
Valuation matters
There's no end to disagreements on how to value stocks and cyclical stocks like Deere in particular. Cyclical companies experience large peaks and troughs in their revenue and earnings, making them difficult to value.
DE Revenue (TTM) data by YCharts
One way to smooth out these differences is to calculate the 10-year average profit margin, and then apply this figure to revenue guidance in order to calculate normalized earnings.
Deere's 10-year average net income margin is 7.7%, and analysts are forecasting Deere's revenue to be $33.7 billion in 2018 and $36.2 billion in 2018. The table below shows the normalized P/E ratios created by using these figures. For reference, the current S&P 500 P/E ratio is 24.6, and Shiller's P/E Ratio (constructed using inflation-adjusted earnings from the last 10 years) is 32.2 -- so Deere's stock looks undervalued on a relative basis.
Data source: Analyst forecasts, author's analysis. *Uses 10-year average Deere net income margin and analyst forecasts for revenue in 2018 & 2019
Upside from rising crop prices?
If you like Deere's valuation and near-term prospects, the stock also has further potential upside from rising crop prices. As noted above, Deere's agricultural machinery improvement is being driven by replacement demand, not by farmers' incomes improving as a result of crop prices increasing -- so current estimates look relatively safe even if they don't.
Crop prices are ultimately determined by a combination of factors, but the single most important variable is the weather. Given any adverse weather conditions that causes a smaller than expected harvest, crop prices could rise and increase farmers' income -- which is usually good news for Deere.
Time to buy Deere?
The long-term theme of growing food demand is an attractive one, and Deere looks set for strong demand from farmers replacing equipment. Throw in some potential upside from crop price increases and Deere's stock looks like a good value.
10 stocks we like better than Deere & Company
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 4, 2018
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In Caterpillar's case, I think the market is overly worried by management's commentary on rising raw material prices, and a similar argument applies to Deere. Nevertheless, even excluding Wirtgen and foreign currency movements, Deere's construction and forestry sales are expected to grow 26% in 2018 -- an improvement on the previously forecast 22% increase. Given any adverse weather conditions that causes a smaller than expected harvest, crop prices could rise and increase farmers' income -- which is usually good news for Deere.
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Improving end markets Deere's key agriculture and construction end markets are clearly improving in 2018, and the company's recent second-quarter earnings report only served to confirm positive trends. Deere's 10-year average net income margin is 7.7%, and analysts are forecasting Deere's revenue to be $33.7 billion in 2018 and $36.2 billion in 2018. *Uses 10-year average Deere net income margin and analyst forecasts for revenue in 2018 & 2019 Upside from rising crop prices?
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Improving end markets Deere's key agriculture and construction end markets are clearly improving in 2018, and the company's recent second-quarter earnings report only served to confirm positive trends. As noted above, Deere's agricultural machinery improvement is being driven by replacement demand, not by farmers' incomes improving as a result of crop prices increasing -- so current estimates look relatively safe even if they don't. Throw in some potential upside from crop price increases and Deere's stock looks like a good value.
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For the first time in five years, Deere's agriculture machinery sales in the U.S. and Canada -- its core end markets -- are expected to increase. DE Revenue (TTM) data by YCharts One way to smooth out these differences is to calculate the 10-year average profit margin, and then apply this figure to revenue guidance in order to calculate normalized earnings. *Uses 10-year average Deere net income margin and analyst forecasts for revenue in 2018 & 2019 Upside from rising crop prices?
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9d943a4b-4f90-4022-847e-6a524d3aaf89
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721998.0
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2018-06-05 00:00:00 UTC
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Trump Tariffs Continue to Rattle Markets, But Investors Should Stay Calm
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DE
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https://www.nasdaq.com/articles/trump-tariffs-continue-rattle-markets-investors-should-stay-calm-2018-06-05
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Markets fell last week upon the expansion of the so-called "Trump tariffs." The uncertainty created by the new round of duties - 25% on imported steel and 10% on imported aluminum - exacerbated long-running fears of a trade war.
Broad markets already have recovered the losses, however. The S&P 500 is at its highest level in almost three months. And while there are real risks here - both in trade and overseas politics - investors need to keep calm.
So far there's little to suggest that trade conflicts pose a real threat to worldwide growth or U.S. equities. And while there are some factors to pay attention to, it's also starting to look like investors may have become a bit spoiled.
The Trump Tariffs
It's important to remember that the tariffs themselves aren't that broad - at least not yet. And while a large, worldwide trade war (however that is defined) could hit economic growth, what's happened so far looks much more like the first stage of a negotiation.
The U.S. has imposed its tariffs, and the impacted nations have responded. The EU is imposing 25% tariffs on products including motorcycles, denim and cigarettes. Canada has responded with its own duties on steel and aluminum. Mexico and Japan will react as well.
My Secret to Finding High-Growth Stocks for Short-Term Profits
But it's not as if worldwide trade is set to plunge. The impacted products total several billions dollars of trade - a fraction of the total. And it's not as if trade disputes only arrived in January 2017. The U.S. and Canada have been fighting over lumber duties for years. WTO (World Trade Organization) actions have been a fairly common occurrence.
Is there a risk of escalation here? Certainly. But responding to the trade actions of late by selling off stocks is an overreaction.
Winners and Losers
That said, there have been some early winners - and losers - from the tariffs. Domestic steel stocks have risen, unsurprisingly. And while I wrote in February that AK Steel Holding Corporation (NYSE: AKS ) was a stock to avoid - and still believe that's the case - there are options in the space.
United States Steel Corporation (NYSE: X ), in particular, still looks cheap, and Steel Dynamics, Inc. (NASDAQ: STLD ) is another beneficiary for investors who believe these tariffs will hold. There are even several ETFs that could be winners .
On the other hand, Caterpillar Inc. (NYSE: CAT ) and Deere & Company (NYSE: DE ) both have taken a hit over the past few months, falling 12% and 13%, respectively, from January highs. Higher steel prices could pressure margins for both companies. And for Deere in particular, tariffs on U.S. farm exports could pressure already-struggling customers.
Here, too, however, it's important not to overreact. For example, a European tariff on motorcycles sounds dangerous for Harley-Davidson Inc (NYSE: HOG ), but the European market as a whole represents barely 15% of total revenue. In that market, Harley-Davidson already has long been struggling with a strong dollar , which has had a larger impact so far.
There's not enough in the Trump tariffs to materially change the outlook for most companies - at least not yet. Investors need to watch and see if that changes. For now, however, vigilance seems much wiser than action.
Are We Getting Spoiled?
That's true from a broad standpoint as well. A choppy market over the last few months has generated quite a few negative headlines. Trade war fears are cited as a concern. There's a potential threat to the euro from political battles in Italy . And valuations look potentially stretched. The S&P 500, after all, has more than quadrupled from its March 6, 2009 low.
All that said, the constant discussion of "heightened volatility" and downside risk seems a bit overwrought. It's true that volatility has risen in 2018. But that's only against a period of historically low movement after the election. From a long-term standpoint, volatility remains toward the lower end of the range seen over the past decade.
The performance of the market as a whole seems a bit more muted. But the S&P 500 still is up 2.7% so far this year - about a 6% annualized return (and closer to 8% including dividends). That, too, might seem disappointing relative to the performance between November 2016 and January 2018. But that, too, is just fine from a historical standpoint.
The Effects of Steel and Aluminum Tariffs Hinge on Trump's Negotiation Skills
Concerns always are present in the equity markets. The current market is no different. But it's important to separate the real risks from the noise. Right now, the Trump tariffs look much more like the latter than the former.
More From InvestorPlace
5 New Highs to Chase (and 5 New Lows to Sell)
A Little (Much-Needed) Perspective on China, Tariffs and Trade War Mania
Buy These 7 Small-Cap Stocks for Their Emerging Opportunities
As of this writing, Vince Martin has no positions in any securities mentioned.
Compare Brokers
The post Trump Tariffs Continue to Rattle Markets, But Investors Should Stay Calm appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More From InvestorPlace 5 New Highs to Chase (and 5 New Lows to Sell) A Little (Much-Needed) Perspective on China, Tariffs and Trade War Mania Buy These 7 Small-Cap Stocks for Their Emerging Opportunities As of this writing, Vince Martin has no positions in any securities mentioned. The uncertainty created by the new round of duties - 25% on imported steel and 10% on imported aluminum - exacerbated long-running fears of a trade war. And while there are real risks here - both in trade and overseas politics - investors need to keep calm.
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The uncertainty created by the new round of duties - 25% on imported steel and 10% on imported aluminum - exacerbated long-running fears of a trade war. The EU is imposing 25% tariffs on products including motorcycles, denim and cigarettes. And while there are real risks here - both in trade and overseas politics - investors need to keep calm.
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More From InvestorPlace 5 New Highs to Chase (and 5 New Lows to Sell) A Little (Much-Needed) Perspective on China, Tariffs and Trade War Mania Buy These 7 Small-Cap Stocks for Their Emerging Opportunities As of this writing, Vince Martin has no positions in any securities mentioned. The uncertainty created by the new round of duties - 25% on imported steel and 10% on imported aluminum - exacerbated long-running fears of a trade war. And while there are real risks here - both in trade and overseas politics - investors need to keep calm.
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But responding to the trade actions of late by selling off stocks is an overreaction. The uncertainty created by the new round of duties - 25% on imported steel and 10% on imported aluminum - exacerbated long-running fears of a trade war. And while there are real risks here - both in trade and overseas politics - investors need to keep calm.
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118f7940-0a9c-4885-8c60-8f64c110fbbf
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721999.0
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2018-06-04 00:00:00 UTC
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Implied PBP Analyst Target Price: $24
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DE
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https://www.nasdaq.com/articles/implied-pbp-analyst-target-price-24-2018-06-04
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the PowerShares S&P 500 BuyWrite Portfolio ETF (Symbol: PBP), we found that the implied analyst target price for the ETF based upon its underlying holdings is $24.17 per unit.
With PBP trading at a recent price near $21.90 per unit, that means that analysts see 10.38% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PBP's underlying holdings with notable upside to their analyst target prices are Monster Beverage Corp (Symbol: MNST), Deere & Co. (Symbol: DE), and Iron Mountain Inc (Symbol: IRM). Although MNST has traded at a recent price of $51.50/share, the average analyst target is 21.27% higher at $62.45/share. Similarly, DE has 16.64% upside from the recent share price of $153.39 if the average analyst target price of $178.92/share is reached, and analysts on average are expecting IRM to reach a target price of $39.50/share, which is 16.35% above the recent price of $33.95. Below is a twelve month price history chart comparing the stock performance of MNST, DE, and IRM:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although MNST has traded at a recent price of $51.50/share, the average analyst target is 21.27% higher at $62.45/share. Below is a twelve month price history chart comparing the stock performance of MNST, DE, and IRM: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, DE has 16.64% upside from the recent share price of $153.39 if the average analyst target price of $178.92/share is reached, and analysts on average are expecting IRM to reach a target price of $39.50/share, which is 16.35% above the recent price of $33.95. 10 ETFs With Most Upside To Analyst Targets » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, DE has 16.64% upside from the recent share price of $153.39 if the average analyst target price of $178.92/share is reached, and analysts on average are expecting IRM to reach a target price of $39.50/share, which is 16.35% above the recent price of $33.95. Below is a twelve month price history chart comparing the stock performance of MNST, DE, and IRM: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With PBP trading at a recent price near $21.90 per unit, that means that analysts see 10.38% upside for this ETF looking through to the average analyst targets of the underlying holdings. Below is a twelve month price history chart comparing the stock performance of MNST, DE, and IRM: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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07dc9afe-f913-4433-af13-6d28ef69fc62
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