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722000.0
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2018-06-04 00:00:00 UTC
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4 Notable Dividend Increases From the Past Week
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DE
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https://www.nasdaq.com/articles/4-notable-dividend-increases-past-week-2018-06-04
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The S&P 500 Index edged higher last week after investors reacted positively to another strong report on the U.S. labor market. With corporate profits heading higher, several companies rewarded shareholders with news of fresh dividend raises.
Four notable dividend stocks rewarded shareholders with dividend increases over the last week. This included a business development company, a mortgage REIT, and a global manufacturer of industrial equipment.
Here are four dividend stocks increasing payouts .
Notable Dividend Increases
Deere & Company (NYSE: DE ) increased its quarterly dividend by 15%, raising its payment to 69 cents per share from 60 cents. Shareholders of record as of June 29 will receive their higher dividends on August 1 from the farm and construction equipment manufacturer. DE shares will be ex-dividend on June 28.
DE Dividend Yield: 1.82%
10 Stocks Hedge Fund Billionaires Are Bullish On
Ladder Capital Corp (NYSE: LADR ) announced a 3% raise to its quarterly dividend, increasing it from 31.5 cents per share to 32.5 cents. Shareholders of record as of June 11 will receive their higher dividends on July 2 from the mortgage real estate investment trust. LADR shares will be ex-dividend on June 8.
LADR Dividend Yield: 8.28%
Saratoga Investment Corp (NYSE: SAR ) raised its quarterly dividend by 2%, increasing it from 50 cents per share to 51 cents. Shareholders of record as of June 15 will receive dividends from the business development company on June 27. The company's shares trade ex-dividend on June 14.
SAR Dividend Yield: 8.84%
Universal Insurance Holdings, Inc. (NYSE: UVE ) moved its quarterly dividend higher by 14%, increasing it from 14 cents per share to 16 cents. The homeowner's insurance provider will pay its higher dividend to shareholders of record as of July 2 on July 16. UVE shares trade ex-dividend on June 29.
UVE Dividend Yield: 1.79%
As of this writing, Brian Bollinger had no position in any of the stocks mentioned.
More On Dividend Stocks From Simply Safe Dividends
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Warren Buffett's Top Dividend Stocks
Compare Brokers
The post 4 Notable Dividend Increases From the Past Week 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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With corporate profits heading higher, several companies rewarded shareholders with news of fresh dividend raises. Shareholders of record as of June 29 will receive their higher dividends on August 1 from the farm and construction equipment manufacturer. Shareholders of record as of June 11 will receive their higher dividends on July 2 from the mortgage real estate investment trust.
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Notable Dividend Increases Deere & Company (NYSE: DE ) increased its quarterly dividend by 15%, raising its payment to 69 cents per share from 60 cents. LADR Dividend Yield: 8.28% Saratoga Investment Corp (NYSE: SAR ) raised its quarterly dividend by 2%, increasing it from 50 cents per share to 51 cents. SAR Dividend Yield: 8.84% Universal Insurance Holdings, Inc. (NYSE: UVE ) moved its quarterly dividend higher by 14%, increasing it from 14 cents per share to 16 cents.
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Notable Dividend Increases Deere & Company (NYSE: DE ) increased its quarterly dividend by 15%, raising its payment to 69 cents per share from 60 cents. DE Dividend Yield: 1.82% 10 Stocks Hedge Fund Billionaires Are Bullish On Ladder Capital Corp (NYSE: LADR ) announced a 3% raise to its quarterly dividend, increasing it from 31.5 cents per share to 32.5 cents. More On Dividend Stocks From Simply Safe Dividends Best High Dividend Stocks Warren Buffett's Top Dividend Stocks Compare Brokers The post 4 Notable Dividend Increases From the Past Week appeared first on InvestorPlace .
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Four notable dividend stocks rewarded shareholders with dividend increases over the last week. Notable Dividend Increases Deere & Company (NYSE: DE ) increased its quarterly dividend by 15%, raising its payment to 69 cents per share from 60 cents. Shareholders of record as of June 15 will receive dividends from the business development company on June 27.
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c4d09913-63e0-4d9b-ae0c-dc537503d64c
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722001.0
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2018-05-31 00:00:00 UTC
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AGCO Partners with AgIntegrated to Aid Precision Agriculture
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DE
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https://www.nasdaq.com/articles/agco-partners-with-agintegrated-to-aid-precision-agriculture-2018-05-31
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nan
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nan
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AGCO CorporationAGCO has entered into a development partnership with AgIntegrated. This partnership will aid the company deliver agricultural information management systems services to its customers, enabling them to connect more easily with their agronomy service providers, create seamless data connectivity, and digitize the farm.
Agricultural technology company, AgIntegrated has experience in the precision agriculture space for around 15 years. The company leverages and enables current technologies. It empowers people who utilize the technologies on a daily basis to advance precision agriculture adoption, consequently improving yield.
The partnership with AgIntegrated will bring multiple new Advanced Programming Interface ("API") connections to AGCO's customers, providing more choices with their wireless data transfer needs. Rather than needing multiple communication paths between technologies, AgIntegrated's Onsite QC Pro data hub provides a neutral platform to streamline agronomic data transfer. This will ensure easier data flow and make decision-making easier for AGCO customers.
AGCO customers can connect to the Onsite QC Pro data hub using TaskDoc Pro, VarioDoc Pro, and Go-Task wireless data transfer products, depending on equipment brand and model. These wireless data transfer pipelines offer customers a seamless integration from their machines to multiple Farm Management Information Systems ("FMIS"). This partnership gives AGCO's customer access to any FMIS, either through a direct connection into AgIntegrated OnSite ecosystem, or by direct download and upload.
Integrating Technology and Agriculture
AGCO's partnership with AgIntegrated is a function of AGCO's Fuse open approach to precision agriculture and transparent partnering model. Efforts to add technology to agriculture is the need of the hour. Agricultural companies like AGCO and Deere & Company DE are now focused on precision agriculture to help American farmers become more efficient and productive in a bid to remain competitive globally.
In sync with this, AGCO had acquired Precision Planting from The Climate Corporation in September 2017. Precision planting plays an essential role in growth and adoption of innovative precision agricultural practices that help farmers enhance productivity. Likewise, Deere acquired Sunnyvale, CA-based Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment. Blue River's technology has aided precision agriculture by shifting farm-management decisions from the field level to the plant level.
Over the past year, AGCO has significantly underperformed the industry with respect to price performance. The stock has gained 1.4%, while the industry recorded growth of 22.7%.
AGCO currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Axon Enterprise, Inc AAXN and Ashtead Group PLC ASHTY . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Axon Enterprise has a long-term earnings growth rate of 25%. The stock has appreciated 166% in a year's time.
Ashtead has a long-term earnings growth rate of 15%. The company's shares have been up 52% in the past year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker 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
AGCO Corporation (AGCO): Free Stock Analysis Report
Ashtead Group PLC (ASHTY): Free Stock Analysis Report
Axon Enterprise, Inc (AAXN): 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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Likewise, Deere acquired Sunnyvale, CA-based Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment. AGCO CorporationAGCO has entered into a development partnership with AgIntegrated. This partnership will aid the company deliver agricultural information management systems services to its customers, enabling them to connect more easily with their agronomy service providers, create seamless data connectivity, and digitize the farm.
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AGCO customers can connect to the Onsite QC Pro data hub using TaskDoc Pro, VarioDoc Pro, and Go-Task wireless data transfer products, depending on equipment brand and model. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Ashtead Group PLC (ASHTY): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. AGCO CorporationAGCO has entered into a development partnership with AgIntegrated.
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Integrating Technology and Agriculture AGCO's partnership with AgIntegrated is a function of AGCO's Fuse open approach to precision agriculture and transparent partnering model. Agricultural companies like AGCO and Deere & Company DE are now focused on precision agriculture to help American farmers become more efficient and productive in a bid to remain competitive globally. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Ashtead Group PLC (ASHTY): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here.
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Blue River's technology has aided precision agriculture by shifting farm-management decisions from the field level to the plant level. AGCO CorporationAGCO has entered into a development partnership with AgIntegrated. This partnership will aid the company deliver agricultural information management systems services to its customers, enabling them to connect more easily with their agronomy service providers, create seamless data connectivity, and digitize the farm.
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fa6032cf-7282-4773-a8df-3f6360410e62
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722002.0
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2018-05-31 00:00:00 UTC
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Deere Rewards Investors With 15% Quarterly Dividend Hike
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DE
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https://www.nasdaq.com/articles/deere-rewards-investors-with-15-quarterly-dividend-hike-2018-05-31
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nan
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nan
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The agriculture equipment maker, Deere & CompanyDE , has announced a hike of 15% in its quarterly cash dividend. The company will now pay a dividend of 69 cents per share, up from the 60 cents paid earlier. The raised dividend will be paid on Aug 1, to shareholders of record as on Jun 29, 2018.
Based on the increased rate, the annual dividend comes to $2.76 a share, resulting in yield of about 1.8%, considering Deere's closing price of $155.08 on May 30. The company has been consistently increasing its dividends. This reflects Deere's continued efforts to boost shareholders' wealth.
Since 2010, Deere has raised its dividend by 146%. From paying 28 cents a share as quarterly dividend in 2010, it has come a long way in displaying its capital strength. Prior to this hike, the company had raised its dividend by 20% in 2014.
Deere & Company Price
Deere & Company Price | Deere & Company Quote
Notably, Deere has strong fundamentals to back dividend hikes. In fact, the company has been a decent performer, beating the Zacks Consensus Estimate in three out of the past four quarters, with an average positive surprise of 4.21%. Moreover, Deere's return on equity (ROE) is 27.7%, significantly higher than the industry's ROE of 9.4%.
Deere's performance will also be supported by solid growth outlook for equipment sales in fiscal 2018. Its equipment sales are expected to rise around 30% year over year, driven by improved operational performance, and continued investment in innovative technology and solutions. Rising replacement demand, strength in Brazil, higher housing starts, improving oil and gas sector, and the Wirtgen acquisition also bode well for its performance.
Moreover, shares of the company have outperformed the industry in a year's time. The stock has gained around 24% compared to 21% growth recorded by the industry during the period.
Zacks Rank & Key Picks
Deere carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Axon Enterprise, Inc AAXN , Caterpillar Inc. CAT and Terex Corporation TEX . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Axon Enterprise has a long-term earnings growth rate of 25%. Its shares have appreciated 161%, over the past year.
Caterpillar has a long-term earnings growth rate of 13.3%. The company's shares have been up 47% in the past year.
Terex has a long-term earnings growth rate of 21%. The stock has gained 21% in a year's time.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker 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
Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Axon Enterprise, Inc (AAXN): 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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In fact, the company has been a decent performer, beating the Zacks Consensus Estimate in three out of the past four quarters, with an average positive surprise of 4.21%. Rising replacement demand, strength in Brazil, higher housing starts, improving oil and gas sector, and the Wirtgen acquisition also bode well for its performance. The agriculture equipment maker, Deere & CompanyDE , has announced a hike of 15% in its quarterly cash dividend.
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Deere & Company Price Deere & Company Price | Deere & Company Quote Notably, Deere has strong fundamentals to back dividend hikes. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. The agriculture equipment maker, Deere & CompanyDE , has announced a hike of 15% in its quarterly cash dividend.
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Deere & Company Price Deere & Company Price | Deere & Company Quote Notably, Deere has strong fundamentals to back dividend hikes. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. The agriculture equipment maker, Deere & CompanyDE , has announced a hike of 15% in its quarterly cash dividend.
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Deere & Company Price Deere & Company Price | Deere & Company Quote Notably, Deere has strong fundamentals to back dividend hikes. The agriculture equipment maker, Deere & CompanyDE , has announced a hike of 15% in its quarterly cash dividend. The company will now pay a dividend of 69 cents per share, up from the 60 cents paid earlier.
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634d6af9-58e6-4fac-bbd1-9af0cc3819d1
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722003.0
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2018-05-30 00:00:00 UTC
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Daily Dividend Report: DE, LADR, UVE, SEIC, RGLD
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DE
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https://www.nasdaq.com/articles/daily-dividend-report-de-ladr-uve-seic-rgld-2018-05-30
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Deere & Company ( DE ) increased the company's quarterly dividend to $.69 per share on common stock. The dividend is payable August 1, 2018, to stockholders of record on June 29, 2018. The new quarterly rate represents an additional 9 cents per share over the previous level - an increase of 15 percent.
Ladder Capital ( LADR ) announced the declaration by its Board of Directors of a second quarter 2018 dividend of $0.325 per share of Class A common stock. The cash dividend is payable on July 2, 2018 to stockholders of record as of the close of business on June 11, 2018. This declaration reflects a 3% increase in Ladder's recurring quarterly cash dividend, effective in the current quarter, to $0.325 per share from $0.315 per share.
Universal Insurance Holdings ( UVE ) has declared an increased quarterly cash dividend of $0.16 per share of common stock, up $0.02 or 14.3% from the $0.14 per share quarterly dividend that the Company previously paid in the first and second quarters of 2018. Payment will be made on July 16, 2018 to shareholders of record on July 2, 2018.
SEI Investments Company ( SEIC ) declared a regular semi-annual dividend of $0.30 per share. The cash dividend will be payable to shareholders of record on June 14, 2018, with a payment date of June 22, 2018.
Royal Gold ( RGLD ) has declared its third quarter dividend of US$0.25 per share of common stock. The dividend is payable on July 20, 2018, to shareholders of record at the close of business on July 6, 2018.
VIDEO: Daily Dividend Report: DE, LADR, UVE, SEIC, RGLD
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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Ladder Capital ( LADR ) announced the declaration by its Board of Directors of a second quarter 2018 dividend of $0.325 per share of Class A common stock. Royal Gold ( RGLD ) has declared its third quarter dividend of US$0.25 per share of common stock. Deere & Company ( DE ) increased the company's quarterly dividend to $.69 per share on common stock.
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Deere & Company ( DE ) increased the company's quarterly dividend to $.69 per share on common stock. Universal Insurance Holdings ( UVE ) has declared an increased quarterly cash dividend of $0.16 per share of common stock, up $0.02 or 14.3% from the $0.14 per share quarterly dividend that the Company previously paid in the first and second quarters of 2018. VIDEO: Daily Dividend Report: DE, LADR, UVE, SEIC, RGLD 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 ) increased the company's quarterly dividend to $.69 per share on common stock. This declaration reflects a 3% increase in Ladder's recurring quarterly cash dividend, effective in the current quarter, to $0.325 per share from $0.315 per share. Universal Insurance Holdings ( UVE ) has declared an increased quarterly cash dividend of $0.16 per share of common stock, up $0.02 or 14.3% from the $0.14 per share quarterly dividend that the Company previously paid in the first and second quarters of 2018.
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Deere & Company ( DE ) increased the company's quarterly dividend to $.69 per share on common stock. This declaration reflects a 3% increase in Ladder's recurring quarterly cash dividend, effective in the current quarter, to $0.325 per share from $0.315 per share. Universal Insurance Holdings ( UVE ) has declared an increased quarterly cash dividend of $0.16 per share of common stock, up $0.02 or 14.3% from the $0.14 per share quarterly dividend that the Company previously paid in the first and second quarters of 2018.
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83be0c51-8c1e-4145-a6aa-94561f392f0d
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722004.0
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2018-05-29 00:00:00 UTC
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Here's Why You Should Hold on to Deere (DE) Stock for Now
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DE
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https://www.nasdaq.com/articles/heres-why-you-should-hold-on-to-deere-de-stock-for-now-2018-05-29
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nan
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nan
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Deere & CompanyDE has been witnessing upward revisions for the past 30 days. The Zacks Consensus Estimate has inched up 0.8% to $9.66 for fiscal 2018 and 1% to $11.54 for fiscal 2019. A positive trend in estimate revisions reflects investors' optimism over the company's bright prospects.
Deere also outpaced the Zacks Consensus Estimate in three out of the trailing four quarters, delivering a positive average earnings surprise of 4.21%.
However, the agricultural equipment maker, with a market capitalization of approximately $51.5 billion, has been plagued with challenges in its agriculture business and elevated expenses.
Below, we briefly discuss the company's potential growth drivers and possible headwinds.
Factors Favoring Deere
Price Performance
Shares of the company have outperformed the industry in a year's time. The stock has gained around 30% compared with 26% growth recorded by the industry during the period.
Return on Assets (ROA)
Deere, currently, has a ROA of nearly 4%, while the industry's ROA is 3.7%. An above-average ROA denotes that the company is generating earnings by effectively managing assets.
Return on Equity (ROE)
Deere's trailing 12-month ROE of 27.7% reinforces its growth potential. The company's ROE is higher than the ROE of 25.4% for the industry, highlighting the company's tactical efficiency in using shareholders' funds.
Growth Drivers in Place
Deere is well poised to gain from the Wirtgen acquisition which significantly enhances the exposure of the former to global transportation infrastructure. Notably, the Wirtgen integration is right on track, with the Deere-Wirtgen team working toward the synergy target of EUR 100 million by 2022. For fiscal 2018, Wirtgen is expected to add $3.2 billion in revenues. Additionally, Deere now projects that Wirtgen will contribute $100 million in operating profit for the fiscal. Deere expects that Wirtgen's operating margins will be 13-14% beyond fiscal 2018.
Further, Deere's performance will be driven by global economic growth, including 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 it continues to spur demand for new and used equipment. As the United States has put a hold on the tariffs on Chinese goods, it will be beneficial for Deere. The company would have been, otherwise, negatively impacted by the slump in domestic demand due to China's retaliatory tariffs and the ban of U.S. agricultural products.
Headwinds
Deere's agriculture business is feared to be affected in fiscal 2018 by expectations of high global grain and oil seed stocks-to-use ratios. This is because abundant crops have offset demand around the world. Furthermore, corn, soybeans and stock-to-use ratios are expected to decline, in response to the rising global demand and drought conditions in Argentina, which have lowered the country's corn and soybean production by roughly 25% and 33%, respectively.
Moreover, Deere will bear the brunt of elevated expenses in fiscal 2018. Its guidance for cost of sales as a percent of net sales is about 76% for the fiscal, up 1% from the previous guidance. The company believes an unfavorable product mix, elevated overhead spending and increased incentive compensation will escalate the cost of sales guidance.
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.
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Axon Enterprise, Inc AAXN , Caterpillar Inc. CAT and W.W. Grainger, Inc. GWW . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Axon Enterprise has a long-term earnings growth rate of 25%. The stock has rallied 153% in a year's time.
Caterpillar has a long-term earnings growth rate of 13.3%. The company's shares have gained 48% during the past year.
Grainger has a long-term earnings growth rate of 12.1%. Its shares have appreciated 80% over the past year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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Click here for the 6 trades >>
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
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
Axon Enterprise, Inc (AAXN): 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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Further, Deere's performance will be driven by global economic growth, including higher housing starts in the United States, and an improved oil and gas sector. Headwinds Deere's agriculture business is feared to be affected in fiscal 2018 by expectations of high global grain and oil seed stocks-to-use ratios. Deere & CompanyDE has been witnessing upward revisions for the past 30 days.
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Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE has been witnessing upward revisions for the past 30 days. Deere also outpaced the Zacks Consensus Estimate in three out of the trailing four quarters, delivering a positive average earnings surprise of 4.21%.
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Factors Favoring Deere Price Performance Shares of the company have outperformed the industry in a year's time. Zacks Rank & Stocks to Consider Deere currently carries a Zacks Rank #3 (Hold). Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here.
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Headwinds Deere's agriculture business is feared to be affected in fiscal 2018 by expectations of high global grain and oil seed stocks-to-use ratios. Zacks Rank & Stocks to Consider Deere currently carries a Zacks Rank #3 (Hold). Deere & CompanyDE has been witnessing upward revisions for the past 30 days.
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722005.0
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2018-05-25 00:00:00 UTC
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Deere (DE) Banks on Wirtgen Acquisition, Expenses Flare Up
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DE
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https://www.nasdaq.com/articles/deere-de-banks-on-wirtgen-acquisition-expenses-flare-up-2018-05-25
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nan
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nan
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On Mar 24, we issued an updated research report on Deere & CompanyDE . The company's performance will be backed by strength in Brazil, higher housing starts, ease in tariff and the Wirtgen acquisition. However, its results might be marred by concerns in the agriculture business and elevated expenses.
Deere Rides on Wirtgen Acquisition
In December 2017, Deere acquired world's leading road-construction equipment maker - Wirtgen - which significantly enhances the exposure of the former to global transportation infrastructure. Global transportation investment is expected to grow, driving increased demand for road construction equipment, such as milling machines, rollers and asphalt pavers. Those are all products in which Wirtgen maintains a market-leading position globally. Importantly, transportation spending remains strong in the United States and Europe, and continues to witness double-digit growth in China and India.
Notably, the Wirtgen integration is well underway, with the Deere-Wirtgen team working toward the synergy target of EUR 100 million by 2022. For fiscal 2018, Wirtgen is forecast to add $3.2 billion in revenues. Additionally, Deere now projects that Wirtgen will contribute $100 million in operating profit for the fiscal. Wirtgen is generating strong positive cash flow in the current fiscal. Deere expects that Wirtgen's operating margins will be 13-14% beyond fiscal 2018.
Higher Housing Starts to Boost Revenues
Deere predicts global sales for Construction & Forestry equipment to be up 83% for fiscal 2018, including a positive currency-translation effect of about 1%. The outlook is based on global economic growth, including 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 it continues to support elevated demand for new and used equipment. For the fiscal, U.S. GDP is forecast to be up at 2.7%, which is above the 20-year average. Meanwhile, housing demand remains solid with housing starts expected to be 1.3 million units for the fiscal.
Ease in Tariff to Drive Top Line
Currently the United States has put hold on the tariffs on Chinese goods. Likewise the retaliatory tariffs by China on U.S. soybeans will no longer be imposed. This will drive Deere's performance.
Strength in Brazil a Catalyst
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% for the fiscal, aided by strength in Brazil. In Brazil, the value of agricultural production is now expected to be about the same as last year, with a record soybean harvest. Furthermore, customers are anticipating lower rates for Moderfrota in July, and therefore, shifting purchases into the second half of the fiscal. This shift in sales is evident in a strong order book, which is up from last fiscal.
Concerns in Agriculture Business
Deere's agriculture business will be affected in fiscal 2018 by the expectation 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, corn, soybeans and stock-to-use ratios are expected to decline, in response to the increasing global demand and drought conditions in Argentina, which have lowered the country's corn and soybean production by roughly 25% and 33%, respectively.
Elevated Expenses to Mar Income
Deere will bear the brunt of elevated expenses in fiscal 2018. Its guidance for cost of sales as a percent of net sales is about 76% for the fiscal, up 1% from the previous guidance. The company believes an unfavorable product mix, elevated overhead spending and increased incentive compensation will escalate the cost of sales guidance. Deere also forecasts SA&G expense to be up about 18% for the fiscal. Further, unfavorable impact of acquisition cost and purchase accounting related to the Wirtgen buyout will dampen earnings.
Share Price Performance
Shares of the company have outperformed the industry in a year's time. The stock has gained around 29% compared 24% growth recorded by the industry during the period.
Zacks Rank & Key Picks
Deere carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Axon Enterprise, Inc AAXN , Caterpillar Inc. CAT and Terex Corporation TEX . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Axon Enterprise has a long-term earnings growth rate of 25%. Its shares have appreciated 149%, over the past year.
Caterpillar has a long-term earnings growth rate of 13.3%. The company's shares have been up 49% in the past year.
Terex has a long-term earnings growth rate of 20.2%. The stock has gained 27% in a year's time.
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Axon Enterprise, Inc (AAXN): 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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Global transportation investment is expected to grow, driving increased demand for road construction equipment, such as milling machines, rollers and asphalt pavers. Higher Housing Starts to Boost Revenues Deere predicts global sales for Construction & Forestry equipment to be up 83% for fiscal 2018, including a positive currency-translation effect of about 1%. On Mar 24, we issued an updated research report on Deere & CompanyDE .
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Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. On Mar 24, we issued an updated research report on Deere & CompanyDE . Deere Rides on Wirtgen Acquisition In December 2017, Deere acquired world's leading road-construction equipment maker - Wirtgen - which significantly enhances the exposure of the former to global transportation infrastructure.
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Deere Rides on Wirtgen Acquisition In December 2017, Deere acquired world's leading road-construction equipment maker - Wirtgen - which significantly enhances the exposure of the former to global transportation infrastructure. Higher Housing Starts to Boost Revenues Deere predicts global sales for Construction & Forestry equipment to be up 83% for fiscal 2018, including a positive currency-translation effect of about 1%. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here.
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On Mar 24, we issued an updated research report on Deere & CompanyDE . Deere Rides on Wirtgen Acquisition In December 2017, Deere acquired world's leading road-construction equipment maker - Wirtgen - which significantly enhances the exposure of the former to global transportation infrastructure. Global transportation investment is expected to grow, driving increased demand for road construction equipment, such as milling machines, rollers and asphalt pavers.
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2018-05-25 00:00:00 UTC
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The Zacks Analyst Blog Highlights: TJX, Deere, Mitsubishi, Target and TE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-tjx-deere-mitsubishi-target-and-te-2018-05-25
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For Immediate Release
Chicago, IL - May 25, 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 TJX CompaniesTJX , DeereDE , Mitsubishi UFJ FinancialMUFG , TargetTGT and TE ConnectivityTEL .
Here are highlights from Thursday's Analyst Blog:
Top Analyst Reports for TJX Companies, Deere and Mitsubishi UFJ
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 TJX Companies, Deere and Mitsubishi UFJ Financial. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
TJX Companies ' shares have outperformed the Zacks Discount Stores industry over the last six months, gaining +23.9% vs a +16% increase, courtesy of its impressive comps record. Comps have been gaining from continued rise in consumer traffic and strength in merchandising policies.
The Zacks analyst thinks that these factors, along with TJX Companies' off-price model, strategic store locations, impressive brands and fashion products have been driving its stores and online performance. This was visible in the company's first-quarter fiscal 2019 results, wherein both top and bottom lines grew year over year and all major units reported comps growth.
The company remains focused on its sales-driving efforts, which are expected to help it witness further market share gains. These factors and a favorable inventory position encouraged management to raise fiscal 2019 earnings view. However, the company has long been witnessing high wage costs. Unfortunately, management expects this to linger and hurt earnings to some extent in fiscal 2019.
Shares of Deere have surged +27.9% over the last year, outperforming the Zacks Farm Equipment industry, which has gained +24.2% over the same period. Deere's adjusted earnings increased 26% year over year in second-quarter fiscal 2018 but came in under expectations.
The top line grew 34% year over year and came in line with expectations. Deere projects total equipment sales growth at around 30% for fiscal 2018 and sales to be up 35% in third-quarter fiscal 2018, both compared with the year-ago periods. It expects that the Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 18% for the fiscal third quarter.
Further, Wirtgen will add $100 million in operating profit in the fiscal. The Zacks analyst thinks Deere will gain from rising replacement demand, strength in Brazil, higher housing starts, improving oil and gas sector and ease in tariffs. However, Deere's results will be affected by weakness in agriculture demand and the U.S. tax reform. Elevated expenses will also thwart its results.
Buy-ranked Mitsubishi UFJ Financial 's shares have declined -7.3% in the last six months, underperforming the Zacks Foreign Banks industry which has declined -3.1% over the same period. The company's fiscal 2017 results reflect a strong capital position and decline in credit costs, partially offset by higher expenses.
Though the negative interest rates in Japan and global growth concerns along with strict regulations are headwinds, the Zacks analyst thinks strong capital ratios and organic growth are likely to drive the company's bottom-line growth. Also, the company's prospects look encouraging, as it focuses on several strategies under its medium-term business plan and global expansion.
Other noteworthy reports we are featuring today include Target and TE Connectivity.
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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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TE Connectivity Ltd. (TEL): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
The TJX Companies, Inc. (TJX): Free Stock Analysis Report
Mitsubishi UFJ Financial Group, Inc. (MUFG): 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 Deere will gain from rising replacement demand, strength in Brazil, higher housing starts, improving oil and gas sector and ease in tariffs. Stocks recently featured in the blog include TJX CompaniesTJX , DeereDE , Mitsubishi UFJ FinancialMUFG , TargetTGT and TE ConnectivityTEL . Here are highlights from Thursday's Analyst Blog: Top Analyst Reports for TJX Companies, Deere and Mitsubishi UFJ The Zacks Research Daily presents the best research output of our analyst team.
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Here are highlights from Thursday's Analyst Blog: Top Analyst Reports for TJX Companies, Deere and Mitsubishi UFJ 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 TJX Companies, Deere and Mitsubishi UFJ Financial. Click to get this free report TE Connectivity Ltd. (TEL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Mitsubishi UFJ Financial Group, Inc. (MUFG): Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Thursday's Analyst Blog: Top Analyst Reports for TJX Companies, Deere and Mitsubishi UFJ 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 TJX Companies, Deere and Mitsubishi UFJ Financial. Click to get this free report TE Connectivity Ltd. (TEL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Mitsubishi UFJ Financial Group, Inc. (MUFG): Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including TJX Companies, Deere and Mitsubishi UFJ Financial. The company's fiscal 2017 results reflect a strong capital position and decline in credit costs, partially offset by higher expenses. Stocks recently featured in the blog include TJX CompaniesTJX , DeereDE , Mitsubishi UFJ FinancialMUFG , TargetTGT and TE ConnectivityTEL .
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2018-05-24 00:00:00 UTC
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Deere Stock Upgraded: What You Need to Know
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https://www.nasdaq.com/articles/deere-stock-upgraded-what-you-need-know-2018-05-24
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Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
Shares of tractor maker Deere & Company (NYSE: DE) are up 27.5% over the past 12 months, doubling the performance of the S&P 500 already -- and the good news has only just begun, according to one industrials analyst.
Predicting that higher grain prices will yield more money for farmers to spend on tractors, and that this will boost Deere's business, Swiss megabank UBS announced this morning that it is upgrading shares of Deere & Co. to buy and assigning the stock a $185 price target.
Here's what you need to know.
UBS' buy thesis
UBS' buy thesis for Deere hinges on one big assumption: That grain prices are headed higher, TheFly.com reports this morning. "[G]rain prices ... have a favorable setup entering the growing season," according to the analyst, and are headed higher. And because higher grain prices put more money in farmers' pockets, this "will stimulate a recovery in North America high-horsepower tractors, which ... have been declining for five years."
UBS says this recovery has been slow in coming so far, but "could accelerate in fiscal 2019." So how likely is that?
Farm report
Along with the non-food crops of cotton and hay, corn, wheat, and soy account for 90% of all acreage planted in the U.S. Among edible grains, corn, wheat, and soy are arguably America's three most important grain crops -- and after a rough couple of years, the prices of all three have finally started going up again.
US Producer Price Index: Farm Products: Wheat data by YCharts .
FarmFutures.com reports that July futures contracts for corn hit their "highest levels since the summer of 2016" due to wet weather having delayed the planting season in the Midwest. Soybean prices, too, are on the rise, spurred by hopes that China will soon resume purchases of U.S. soy. And wheat prices are also rising, thanks to forecasts for dry weather that could depress yields in the Plains states, Australia, Canada, and Russia.
So it appears conditions are propitious for price hikes, higher farm incomes, and more spending on the tractors and combines that Deere produces.
What it means for Deere
That makes logical sense, but does it mean Deere stock is a buy, as UBS argues it is? Not necessarily. As you can see in the below chart, Deere's stock price doesn't strictly track the price of major grains in the U.S. -- holding steady in late 2015/early 2016 for example, when grain prices were falling, and rising in late 2016/early 2017 when grain prices were... also falling!
US Producer Price Index: Farm Products: Wheat data by YCharts .
True, Deere stock performed well mid-2017 when all three major grain crops enjoyed a spike in price, and we seem to see that happening again this month. Still, investors can't rely on Deere's run will continuing given the stock's connection to grain price trends has been so tenuous in the past.
I'm inclined to think investors would be better off spending more time focusing on whether Deere's stock price looks like a good value, rather than reading the ag reports, to determine if Deere stock is a buy or not. In that regard, I have to say that with a price-to-earnings ratio of 28 and a long-term projected earnings growth rate of 5% (according to analysts surveyed by S&P Global Market Intelligence ), Deere stock is in fact not a particularly compelling buy at today's prices. And if pressed, I might even point out that Deere is currently running free-cash-flow negative on its business, as it has done for more than a year now -- which is hardly a point in the stock's favor.
Long story short, while I certainly understand why recent trends in grain prices might make UBS feel optimistic about Deere stock, I don't share the optimism. As any farmer knows, crop health can change in a hurry -- and the rally in Deere's stock price could wither just as fast.
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Rich Smith 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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Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Shares of tractor maker Deere & Company (NYSE: DE) are up 27.5% over the past 12 months, doubling the performance of the S&P 500 already -- and the good news has only just begun, according to one industrials analyst. US Producer Price Index: Farm Products: Wheat data by YCharts . In that regard, I have to say that with a price-to-earnings ratio of 28 and a long-term projected earnings growth rate of 5% (according to analysts surveyed by S&P Global Market Intelligence ), Deere stock is in fact not a particularly compelling buy at today's prices.
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US Producer Price Index: Farm Products: Wheat data by YCharts . UBS' buy thesis UBS' buy thesis for Deere hinges on one big assumption: That grain prices are headed higher, TheFly.com reports this morning. Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more.
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Predicting that higher grain prices will yield more money for farmers to spend on tractors, and that this will boost Deere's business, Swiss megabank UBS announced this morning that it is upgrading shares of Deere & Co. to buy and assigning the stock a $185 price target. US Producer Price Index: Farm Products: Wheat data by YCharts . As you can see in the below chart, Deere's stock price doesn't strictly track the price of major grains in the U.S. -- holding steady in late 2015/early 2016 for example, when grain prices were falling, and rising in late 2016/early 2017 when grain prices were... also falling!
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Predicting that higher grain prices will yield more money for farmers to spend on tractors, and that this will boost Deere's business, Swiss megabank UBS announced this morning that it is upgrading shares of Deere & Co. to buy and assigning the stock a $185 price target. US Producer Price Index: Farm Products: Wheat data by YCharts . Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more.
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2018-05-24 00:00:00 UTC
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4 Stocks to Buy as a U.S.-China Trade Deal Nears
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DE
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https://www.nasdaq.com/articles/4-stocks-buy-us-china-trade-deal-nears-2018-05-24
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
China and the U.S. are moving closer to a comprehensive trade deal, with Treasury Secretary Steve Mnuchin saying that "a trade war is on hold" and China apparently making numerous concessions to the U.S..
Some of these concessions have already been announced by Beijing. Others have only been mentioned as likely by the U.S under any deal. But since China is the world's second largest economy and it does look set to make meaningful concessions to the U.S., it's definitely worthwhile for investors to buy stocks that are likely to benefit from the emerging trade deal between Washington and Beijing.
The energy and agricultural sectors in general, and Cheniere Energy, Inc. (NYSE: LNG ), Chesapeake EnergyCorporation (NYSE: CHK ), Deere & Company (NYSE: DE ) and Monsanto Company (NYSE: MON ) in particular, look very well-positioned to benefit tremendously from a U.S.-China trade deal.
20 Stocks Hedge Fund Managers Are Buying In Bulk
Here's a closer look:
Energy: Cheniere and Chesapeake
Mnuchin told CNBC on May 21 that "in energy, I think there's a opportunity for the U.S. to become a major supplier … to China," adding that "they have incredible amounts of demand at these prices for our shale and our liquid natural gas." According to Mnuchin, the U.S. "can easily" export $40 billion to $50 billion "of energy" to the Asian country.
Cheniere Energy owns the Sabine Pass terminal on the border of Texas and Louisiana which exports natural gas abroad. It is extremely well-positioned to benefit from increased U.S. exports of natural gas to China because it recently "signed the first-ever, long-term deal between an American natural gas exporter and a Chinese state-owned energy company," CNBC reported . Also worth noting is that Sabine Pass is one of only two "fully operational LNG export terminal" in the continental U.S., while the other is located far away in Maryland.
Two other terminals are slated to become operational in the Gulf Coast area in coming months, but with its existing deal with China and its current exclusive position on the Gulf Coast giving it a first-mover advantage, Cheniere Energy and Cheniere Energy stock are clearly poised to benefit tremendously from increased Chinese imports of natural gas from the U.S. Finally, Cheniere is in the process of developing an additional Gulf Coast liquefied natural gas export terminal in Corpus Christi, Texas.
As this Seeking Alpha author points out , using a third-party source, Chesapeake Energy as of last year was the second largest producer of natural gas in the U.S., behind only Exxon Mobil Corporation (NYSE: XOM ). Moreover, Chesapeake has significant natural gas production facilities in the Eagle Ford Shale Play in South Texas and the Haynesville Shale located in southwestern Arkansas, northwest Louisiana and East Texas. Both are relatively close to Cheniere Energy's current export facility at Sabine Pass and its future export facility in Corpus Christi. Importantly, Chesapeake has said in the past that it is willing and able to export liquid natural gas.
Finally, Chesapeake stock is very cheap, as the forward price-to-earnings ratio of Chesapeake stock is around 7 and its price to sales ratio is only 0.43, while the company's business is benefiting from rising oil prices.
Ag Products: Deere and Monsanto
President Trump said that China would buy "massive amounts" of U.S. farm products under the pending trade deal between the U.S. and China. According to the president, a trade deal between the countries "would be one of the best things to happen to our farmers in many years."
Of course, massive increases in the amount of U.S. agricultural products exported to China would greatly increase the revenue and profits of both Monsanto - which makes seeds and herbicides - and Deere, which manufactures farm machinery. That's because as farmers' income increases, they are able to afford more new products from both companies.
3 Internet of Things Stocks That Are Set to Have Monster Futures
More importantly, their need for such products will increase as they grow more crops to meet the higher demand from China. As a result, both Deere stock and Monsanto stock should get a big boost from a U.S.-China trade deal.
As of this writing, Larry Ramer did not own shares of any of the companies named.
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The post 4 Stocks to Buy as a U.S.-China Trade Deal Nears 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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But since China is the world's second largest economy and it does look set to make meaningful concessions to the U.S., it's definitely worthwhile for investors to buy stocks that are likely to benefit from the emerging trade deal between Washington and Beijing. 3 Internet of Things Stocks That Are Set to Have Monster Futures More importantly, their need for such products will increase as they grow more crops to meet the higher demand from China. InvestorPlace - Stock Market News, Stock Advice & Trading Tips China and the U.S. are moving closer to a comprehensive trade deal, with Treasury Secretary Steve Mnuchin saying that "a trade war is on hold" and China apparently making numerous concessions to the U.S..
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The energy and agricultural sectors in general, and Cheniere Energy, Inc. (NYSE: LNG ), Chesapeake EnergyCorporation (NYSE: CHK ), Deere & Company (NYSE: DE ) and Monsanto Company (NYSE: MON ) in particular, look very well-positioned to benefit tremendously from a U.S.-China trade deal. Finally, Cheniere is in the process of developing an additional Gulf Coast liquefied natural gas export terminal in Corpus Christi, Texas. InvestorPlace - Stock Market News, Stock Advice & Trading Tips China and the U.S. are moving closer to a comprehensive trade deal, with Treasury Secretary Steve Mnuchin saying that "a trade war is on hold" and China apparently making numerous concessions to the U.S..
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The energy and agricultural sectors in general, and Cheniere Energy, Inc. (NYSE: LNG ), Chesapeake EnergyCorporation (NYSE: CHK ), Deere & Company (NYSE: DE ) and Monsanto Company (NYSE: MON ) in particular, look very well-positioned to benefit tremendously from a U.S.-China trade deal. It is extremely well-positioned to benefit from increased U.S. exports of natural gas to China because it recently "signed the first-ever, long-term deal between an American natural gas exporter and a Chinese state-owned energy company," CNBC reported . Two other terminals are slated to become operational in the Gulf Coast area in coming months, but with its existing deal with China and its current exclusive position on the Gulf Coast giving it a first-mover advantage, Cheniere Energy and Cheniere Energy stock are clearly poised to benefit tremendously from increased Chinese imports of natural gas from the U.S.
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20 Stocks Hedge Fund Managers Are Buying In Bulk Here's a closer look: Energy: Cheniere and Chesapeake Mnuchin told CNBC on May 21 that "in energy, I think there's a opportunity for the U.S. to become a major supplier … to China," adding that "they have incredible amounts of demand at these prices for our shale and our liquid natural gas." Cheniere Energy owns the Sabine Pass terminal on the border of Texas and Louisiana which exports natural gas abroad. Ag Products: Deere and Monsanto President Trump said that China would buy "massive amounts" of U.S. farm products under the pending trade deal between the U.S. and China.
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2018-05-23 00:00:00 UTC
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3 Stocks to Play Trump’s Trade Talks with China
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https://www.nasdaq.com/articles/3-stocks-to-play-trumps-trade-talks-with-china-2018-05-23
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks slipped through the cash session on Tuesday, as a late bout of selling pressure spoiled the mood, with the weakness continuing into the overnight futures session early Wednesday morning. The Russell 2000 small-cap index broke its streak of four consecutive record closes.
The bulls looked set to carry the day again after Chinese officials said they would cut the import tariff on U.S. autos to 15% from 25% - playing into the hopes of thawing trade relations between Washington and Beijing. But late-breaking headlines from President Donald Trump spoiled the mood. Trump said a deal hadn't been found concerning Chinese telecom ZTE (which admitted selling to North Korea and Iran) and that he wasn't happy about how talks had progressed to date.
Top 20 Gold Stocks to Buy Despite Irrational Markets
These three export-oriented stocks are feeling the volatility from the headline risk:
Stocks to Play for Trump's China Talks: Boeing (BA)
Boeing Co (NYSE: BA ) shares broke out of a three-month uptrend channel on Monday only to see the gains partially reversed on Tuesday as prices fell to fill the gap from the prior session. This also represents a failed test of the late-February highs unless the bulls can muster a fresh charge higher.
The stock also looks set to benefit form a WTO ruling that the European Union has failed to honor previous rulings against billions in illegal subsidies given to Airbus.
The company will next report results on July 25 before the bell. Analysts are looking for earnings of $3.44 per share on revenues of $23.8 billion. When the company last reported on April 25, earnings of $3.64 beat estimates by $1.05 on revenues of $23.4 billion, up 6.5% from the year prior.
Stocks to Play for Trump's China Talks: Deere (DE)
Deere & Company (NYSE: DE ) shares have broken up and out of a five-month downtrend, jumping back above their 200-day and 50-day moving averages to return to levels last seen in March. But a foray above $160 was reversed on Monday with another 2.1% decline suffered on Tuesday as trade hopes dimmed.
The company will next report results on Aug. 17 before the bell. Analysts are looking for earnings of $2.72 per share on revenues of $9.2 billion.
25 Unstoppable Stocks to Buy No Matter What
When the company last reported on May 18, earnings of $3.14 per share missed estimates by 17 cents on a 34.3% rise in revenues.
Stocks to Play for Trump's China Talks: Caterpillar (CAT)
Caterpillar Inc. (NYSE: CAT ) shares look to have set a false breakout on Monday after being pushed back below resistance near the $160-a-share threshold. This puts the stock price back into the grips of a four-month consolidation range bounded to the downside by the 200-day moving average.
The company will next report results on July 30 before the bell. Analysts are looking for earnings of $2.72 per share on revenues of $13.9 billion. When the company last reported on April 24, earnings of $2.82 per share beat estimates by 72 cents on a 30.9% 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 3 Stocks to Play Trump's Trade Talks with China 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 bulls looked set to carry the day again after Chinese officials said they would cut the import tariff on U.S. autos to 15% from 25% - playing into the hopes of thawing trade relations between Washington and Beijing. This puts the stock price back into the grips of a four-month consolidation range bounded to the downside by the 200-day moving average. The Russell 2000 small-cap index broke its streak of four consecutive record closes.
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Top 20 Gold Stocks to Buy Despite Irrational Markets These three export-oriented stocks are feeling the volatility from the headline risk: Stocks to Play for Trump's China Talks: Boeing (BA) Boeing Co (NYSE: BA ) shares broke out of a three-month uptrend channel on Monday only to see the gains partially reversed on Tuesday as prices fell to fill the gap from the prior session. Stocks to Play for Trump's China Talks: Deere (DE) Deere & Company (NYSE: DE ) shares have broken up and out of a five-month downtrend, jumping back above their 200-day and 50-day moving averages to return to levels last seen in March. The Russell 2000 small-cap index broke its streak of four consecutive record closes.
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Top 20 Gold Stocks to Buy Despite Irrational Markets These three export-oriented stocks are feeling the volatility from the headline risk: Stocks to Play for Trump's China Talks: Boeing (BA) Boeing Co (NYSE: BA ) shares broke out of a three-month uptrend channel on Monday only to see the gains partially reversed on Tuesday as prices fell to fill the gap from the prior session. Stocks to Play for Trump's China Talks: Deere (DE) Deere & Company (NYSE: DE ) shares have broken up and out of a five-month downtrend, jumping back above their 200-day and 50-day moving averages to return to levels last seen in March. The Russell 2000 small-cap index broke its streak of four consecutive record closes.
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Top 20 Gold Stocks to Buy Despite Irrational Markets These three export-oriented stocks are feeling the volatility from the headline risk: Stocks to Play for Trump's China Talks: Boeing (BA) Boeing Co (NYSE: BA ) shares broke out of a three-month uptrend channel on Monday only to see the gains partially reversed on Tuesday as prices fell to fill the gap from the prior session. The Russell 2000 small-cap index broke its streak of four consecutive record closes. The bulls looked set to carry the day again after Chinese officials said they would cut the import tariff on U.S. autos to 15% from 25% - playing into the hopes of thawing trade relations between Washington and Beijing.
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7746aad2-1dce-4414-8116-563ba660c5d3
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722010.0
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2018-05-22 00:00:00 UTC
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China to Buy U.S Agricultural Products: Boon for Deere & Peers
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DE
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https://www.nasdaq.com/articles/china-to-buy-u.s-agricultural-products%3A-boon-for-deere-peers-2018-05-22
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nan
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nan
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On May 21, President Trump tweeted that China has agreed to buy "massive amounts" of agricultural products from the United States. Trump also heralded the move as one of the best in years for U.S. farmers as China will practically purchase all the produce of the country's farmers.
These tweets came on the heels of U.S Treasury Secretary Steven Mnuchin's statement that Trump administration would delay implementation of tariffs on Chinese goods and the trade war with China is "on hold" as the world's largest economies work on a wider trade agreement. Mnuchin further added that the agreement reached by Chinese and American delegators set up a framework for addressing trade imbalances in the future. Mnuchin indicated that the United States expects to see a surge of 35-40% in agricultural exports to China this year.
As a result of these talks, China has agreed to import more energy and agricultural commodities from the United States and reduce the annual U.S goods and services trade deficit with China which is currently at $335 billion. However, the Trump Administration did not disclose the magnitude of purchases, timeline or details of the framework.
U.S Agricultural Markets Clouded by Tariff Fears
The fears of a trade war was triggered by Trump administration's proposed tariffs of $50 billion on Chinese goods and further escalated with retaliatory tariffs of an equivalent amount, including agricultural products, by Beijing. Trump then threatened to target an additional $100 billion worth of Chinese products.
Per U.S. Department of Agriculture Foreign Agricultural Service, China is the second largest destination for U.S. agriculture exports at $19.6 billion in 2017. Consequently, the U.S. agricultural market, soybeans in particular, was expected to be hit hard with these retaliatory tariffs. Notably, China bought 93.5 million tons of soybeans in 2017, according to data from the U.S. Department of Agriculture. In fact, Soybeans is the United States' second-most valuable export to China after varieties of airplanes. The market for soybeans has gained significantly in China as consumers shifted from a diet dominated by rice to pork, poultry and beef, thus leading to a surge in meat demand. China is unable to produce enough animal feed to meet the growing demand and hence the need to import soybeans from the United States and Brazil.
Market Reaction to the Ceasefire
This tit-for-tat standoff between two of the world's largest economies had rattled financial markets on fears that this situation could spiral into a trade war and eventually impact global growth. However, the current agreement seems to have stalled a trade war. Consequently, markets have heaved a sigh of relief for the time being.
The Dow Jones Industrial Average rose 298.20 points, or 1.2%, to 25,013.29 - the index's highest since Mar 12. The S&P 500 gained 0.74% or 20.04 points to 2,733.01, at a roughly nine-week high. The Nasdaq Composite Index surged 39.70 points, or 0.5%, to 7,394.04.
Relief for Agricultural Stocks
The United States will now put the brakes on $150 billion in tariffs on Chinese goods. Likewise the retaliatory tariffs by China of around $50 billion on U.S. soybeans will no longer be imposed. This along with the promise of massive U.S agricultural exports will drive revenues for agricultural stocks.
The S&P 1500 Agricultural & Farm Machinery Sub-Industry Index rose 1.98% to 174.25. Agricultural equipment manufacturer, Deere & Company DE jumped 1.98% to close at $158.33 on May 21, following the development. The company would have borne the brunt of the big drop in domestic demand due to the China tariffs and the ban of U.S. agricultural products. The company generates around 39% of its revenue overseas. The rise in agricultural equipment demand will boost its revenues.
Another farm equipment manufacturer, AGCO Corporation AGCO gained 1.25% to close at $68.05 on May 21.
Titan International, Inc. TWI , which offers rims, wheels, tires, and undercarriage systems and components for various agricultural equipment, rose 5.96% to close at $12.27 on May 21.
Irrigation equipment manufacturer, Lindsay Corporation's LNN shares gained 1.12% to $98.79 on May 21.
While Titan International sports a Zacks Rank #1 (Strong Buy), Deere, AGCO and Lindsay Corporation carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
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
AGCO Corporation (AGCO): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
Titan International, Inc. (TWI): 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 market for soybeans has gained significantly in China as consumers shifted from a diet dominated by rice to pork, poultry and beef, thus leading to a surge in meat demand. China is unable to produce enough animal feed to meet the growing demand and hence the need to import soybeans from the United States and Brazil. Titan International, Inc. TWI , which offers rims, wheels, tires, and undercarriage systems and components for various agricultural equipment, rose 5.96% to close at $12.27 on May 21.
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On May 21, President Trump tweeted that China has agreed to buy "massive amounts" of agricultural products from the United States. While Titan International sports a Zacks Rank #1 (Strong Buy), Deere, AGCO and Lindsay Corporation carry a Zacks Rank #3 (Hold). Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S Agricultural Markets Clouded by Tariff Fears The fears of a trade war was triggered by Trump administration's proposed tariffs of $50 billion on Chinese goods and further escalated with retaliatory tariffs of an equivalent amount, including agricultural products, by Beijing. Per U.S. Department of Agriculture Foreign Agricultural Service, China is the second largest destination for U.S. agriculture exports at $19.6 billion in 2017. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S Agricultural Markets Clouded by Tariff Fears The fears of a trade war was triggered by Trump administration's proposed tariffs of $50 billion on Chinese goods and further escalated with retaliatory tariffs of an equivalent amount, including agricultural products, by Beijing. On May 21, President Trump tweeted that China has agreed to buy "massive amounts" of agricultural products from the United States. Trump also heralded the move as one of the best in years for U.S. farmers as China will practically purchase all the produce of the country's farmers.
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b0fc6a77-11f2-4218-abad-a300921d86b3
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722011.0
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2018-05-22 00:00:00 UTC
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Trade War Fears Ease: Will Agriculture Stocks Rake In Gains?
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DE
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https://www.nasdaq.com/articles/trade-war-fears-ease-will-agriculture-stocks-rake-gains-2018-05-22
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nan
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Fears of a trade war between the United States and China had gripped markets over the last two and a half months. However, the fears somewhat subsided after Treasury Secretary Steven Mnuchin on May 20, said that tariffs against China have been put on hold. This saw markets finally bouncing back on Monday. As investors' confidence got reinstated, stocks rallied, with the Dow and S&P 500 registering their best performances in more than two months.
Additionally, President Donald Trump's tweet that China has agreed to buy huge amounts of agricultural farm and agricultural products saw agricultural products and farm equipment manufacturer stocks rallying. Understandably, agricultural products and related sectors stand to be one of the biggest winners if a trade war is averted. Consequently, China is likely to import more agricultural products to bridge the huge trade deficit with the United States.
China to Import More Agricultural and Farm Products
Fears of a trade war between the United States and China eased on Monday, as both the countries continued trade negotiations. On Sunday, Mnuchin had said: "We are putting the trade war on hold." Taking the new-found camaraderie forward, the next day, China commented that it would import more U.S. goods including energy and agricultural products. This gave investors' confidence a huge boost.
Trump had earlier accused China of unfair trade practices that have piled up a huge trade deficit. China's decision to import more agricultural products is a move to bridge the $337 billion trade deficit with the United States. However, it was Trump's tweet that saw agricultural stocks rallying.
On May 21, Trump tweeted: "China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products - would be one of the best things to happen to our farmers in many years!" This saw a rally in agricultural stocks, with the S&P 500 Agricultural and Farm Machinery Index rising 2%.
Agricultural stocks were reeling under pressure since China had announced retaliatory tariffs on a number of U.S. agricultural and farm products. China imports huge amounts of U.S. agricultural and farm products and higher duties would have surely affected the profits of a large number of U.S. companies. China's decision to import more energy and agricultural products could initially amount to $200 billion.
Agricultural Products, Farm Equipment Stocks to Gain
More imports mean more sales, which will result in higher revenues for companies. China imports huge amounts of cereals and other farm products from the United States and going by the latest development, imports are only going to increase in the days to come. The announcement was applauded by investors, with agricultural stocks gaining on Monday.
It goes without saying that companies that export huge amounts of farm products to China stand to be the winners. Shares of The Andersons, Inc. ANDE jumped 1.6%, while Bunge Limited BG increased 0.4% on Monday.
Given that China imports a number of agricultural products from the United States, beef, soybean, corn, wheat, sorghum, fruits and nuts could be the key beneficiaries. Interestingly, China already accounts for 60% of the United States' annual soybean exports. China imported $14 billion worth of soybean from the United States in 2017.
Understandably, this is also an opportune moment for agricultural equipment manufacturing companies. Monday's announcement also saw shares of farm equipment companies rallying. Shares of Deere & Company DE gained the most, with a 2% rise, followed by AGCO Corporations' AGCO 1.3% uptick on Monday. Also, shares of Titan International, Inc. TWI increased 6%. Titan sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Summing Up
The United States and China seems to be finally taking all necessary steps to avoid a trade war, which definitely has reinstated investors' confidence. Given that China has decided to import more agricultural and farm products in order to taper the huge trade deficit gap with the United States, agricultural products and agricultural equipment stocks seem to be the a key beneficiaries.
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
AGCO Corporation (AGCO): Free Stock Analysis Report
Titan International, Inc. (TWI): Free Stock Analysis Report
The Andersons, Inc. (ANDE): Free Stock Analysis Report
Bunge Limited (BG): 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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Taking the new-found camaraderie forward, the next day, China commented that it would import more U.S. goods including energy and agricultural products. Summing Up The United States and China seems to be finally taking all necessary steps to avoid a trade war, which definitely has reinstated investors' confidence. Fears of a trade war between the United States and China had gripped markets over the last two and a half months.
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Additionally, President Donald Trump's tweet that China has agreed to buy huge amounts of agricultural farm and agricultural products saw agricultural products and farm equipment manufacturer stocks rallying. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report The Andersons, Inc. (ANDE): Free Stock Analysis Report Bunge Limited (BG): Free Stock Analysis Report To read this article on Zacks.com click here. Fears of a trade war between the United States and China had gripped markets over the last two and a half months.
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Additionally, President Donald Trump's tweet that China has agreed to buy huge amounts of agricultural farm and agricultural products saw agricultural products and farm equipment manufacturer stocks rallying. Given that China has decided to import more agricultural and farm products in order to taper the huge trade deficit gap with the United States, agricultural products and agricultural equipment stocks seem to be the a key beneficiaries. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report The Andersons, Inc. (ANDE): Free Stock Analysis Report Bunge Limited (BG): Free Stock Analysis Report To read this article on Zacks.com click here.
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China imports huge amounts of cereals and other farm products from the United States and going by the latest development, imports are only going to increase in the days to come. Summing Up The United States and China seems to be finally taking all necessary steps to avoid a trade war, which definitely has reinstated investors' confidence. Fears of a trade war between the United States and China had gripped markets over the last two and a half months.
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6d57e531-11b6-44bc-b503-9e46501095c1
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722012.0
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2018-05-21 00:00:00 UTC
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Deere & Company Stock Is Ready to Run!
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DE
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https://www.nasdaq.com/articles/deere-company-stock-ready-run-2018-05-21
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares of Deere & Company (NYSE: DE ) have rallied sharply after bottoming out at the $135 area.
DE stock added on another 5.75% on Friday following earnings that were somewhat disappointing but with guidance that was well received. The news over the weekend of lessened Chinese tariffs should also provide a boon to the agriculture sector, by far the largest buyer of Deere equipment. Look for Deere stock to be a solid performer over the coming weeks.
Earnings were a decided miss for Deere, coming in at $3.14 per share versus $3.33 consensus. Revenues also were a tad light at $9.7 billion compared to analyst estimates of $9.8 billion.
DE stock rallied, however, on the raised guidance . The company now expects full-year earnings of $3.1 billion compared to prior guidance of $2.85 billion. It also looks for sales to increase 30% overall on the back of higher pricing.
25 Unstoppable Stocks to Buy No Matter What
Factor in a comparatively cheap forward P/E ratio of under 17 for 2018-and even lower for 2019 and 2020- and DE stock looks attractive at current levels.
The news of lowered tariff tension out of China is a double positive for DE stock. Higher corn, bean and other agriculture prices will bolster customer demand while lower steel and aluminum prices will have direct-benefit costs. Definitely a win-win situation for Deere.
DE Stock broke out above major resistance at the $152 level, which now becomes major support. Shares are also poised to move through the widely followed 100-day moving average at $156.05.
This should also lend downside support as well. Even a break out move towards the old highs at the $175 area can't be ruled out for DE stock considering the recent momentum. Time to be a buyer of any dip in DE stock.
Implied volatility (IV) is lower in DE stock per usual following earnings but is still at levels that make sense to be a seller of options. So to position to be bullish on Deere on weakness, a put credit spread is the favored trade. The trade also allows us to collect premium now to be a buyer later.
DE Stock Options
Buy DE June $145 puts and sell DE June $150 puts for a 70 cents net credit
Maximum gain on the trade is $70 per spread with a maximum risk of $430 per spread, Return on risk is 16.28%. The short $150 strike price is below the $152 support level and provides a 3.38% downside cushion to the $155.25 closing price of DE stock.
Tim may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his option-based strategies can go to https://marketfy.com/item/options-and-volatility .
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The post Deere & Company Stock Is Ready to Run! 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 news over the weekend of lessened Chinese tariffs should also provide a boon to the agriculture sector, by far the largest buyer of Deere equipment. Even a break out move towards the old highs at the $175 area can't be ruled out for DE stock considering the recent momentum. Implied volatility (IV) is lower in DE stock per usual following earnings but is still at levels that make sense to be a seller of options.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of Deere & Company (NYSE: DE ) have rallied sharply after bottoming out at the $135 area. DE Stock Options Buy DE June $145 puts and sell DE June $150 puts for a 70 cents net credit Maximum gain on the trade is $70 per spread with a maximum risk of $430 per spread, Return on risk is 16.28%. DE stock added on another 5.75% on Friday following earnings that were somewhat disappointing but with guidance that was well received.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of Deere & Company (NYSE: DE ) have rallied sharply after bottoming out at the $135 area. DE Stock Options Buy DE June $145 puts and sell DE June $150 puts for a 70 cents net credit Maximum gain on the trade is $70 per spread with a maximum risk of $430 per spread, Return on risk is 16.28%. Fill Up Your Tank With These 3 Stocks Instead 30 Marijuana Stocks to Buy as the Future Turns Green 9 In-Depth Reasons Why Facebook, Inc. Is a Must-Own Stock Compare Brokers The post Deere & Company Stock Is Ready to Run!
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of Deere & Company (NYSE: DE ) have rallied sharply after bottoming out at the $135 area. 25 Unstoppable Stocks to Buy No Matter What Factor in a comparatively cheap forward P/E ratio of under 17 for 2018-and even lower for 2019 and 2020- and DE stock looks attractive at current levels. The short $150 strike price is below the $152 support level and provides a 3.38% downside cushion to the $155.25 closing price of DE stock.
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e9276cd8-26e3-4459-bd12-78cdce113541
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722013.0
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2018-05-21 00:00:00 UTC
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5 Top Stock Trades for Monday Morning
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DE
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https://www.nasdaq.com/articles/5-top-stock-trades-for-monday-morning-2018-05-21
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the exception of small caps, major U.S. stock indices took a breather this past week. That actually bodes well for the bull case, in my opinion. With that in mind, let's get a look at our top stock trades for this week.
Top Stock Trades for Monday #1: PayPal (PYPL)
PayPal Holdings Inc (NASDAQ: PYPL ) made a deal to buy iZettle for $2.2 billion to get into the small business payment space. Worth noting is that Square Inc (NYSE: SQ ) recovered from its early losses on the session.
The deal vaulted PYPL stock over downtrend resistance, a level it initially broke over on Thursday but failed to close above. With the move, bulls can take a new position, with a look for support to come into play on the back of that prior resistance line. The 50-day and 100-day should also give support.
20 High-Dividend Stocks With Too Much Cash to Count
Assuming these levels hold, bulls should have three targets in mind: $84, previous highs near $86 and new all-time highs.
Top Stock Trades for Monday #2: Baidu (BIDU)
Just when it looked like Baidu Inc (ADR) (NASDAQ: BIDU ) was breaking out over that $260 to $270 level, it had to disappoint. The company's COO is stepping down, fueling a 9% drop in the stock price.
Is it an overreaction? Possibly, but let's look at the charts. The hope for bulls at this point is that the $250-ish level can stabilize BIDU stock. If not, it's got its three major moving averages between $242 and $245.
If BIDU cuts through these support levels, $215 to $230 could be in the cards. At this point, we don't know where support will come into play. Let's let BIDU stock show us where it's at over the next few days.
Top Stock Trades for Monday #3: Nordstrom (JWN)
Nordstrom, Inc. (NYSE: JWN ) stock dumped 10% after the company reported earnings on Friday morning.
It's now near must-hold support at $46. Should JWN fail to bounce, it will break below the 200-day moving average. That puts $44 and possibly lower on the table. I don't want to dip my toe in until I know $46 will hold.
25 Unstoppable Stocks to Buy No Matter What
I'd rather be late to the party and enjoy the good times than show up early and be committed to an unfortunate spot.
Top Stock Trades for Monday #4: Deere (DE)
It's good to see Deere & Company (NYSE: DE ) stock get some mojo back. Friday's earnings report is only helping to fuel its bounce off the lows earlier this month. But where to now?
Shares hit a brick wall at the 100-day moving average, but DE's push over $152 was impressive. I would personally rather buy on a pause/pullback to the lower $150s, but maybe I'm just being picky.
DE stock looks like it can higher from here.
Top Stock Trades for Monday #5: PepsiCo (PEP)
My oh my, what happened to PepsiCo, Inc. (NYSE: PEP ) stock? Shares of Pepsi have been in a near-constant state of decline for almost four months now.
Thankfully, the end may be near.
Shares of the drinks and snacks conglomerate have tumbled more than 20% from its 2018 highs. However, the $95 to $97 level has been multi-year support. With momentum via the MACD (yellow circle) showing a potential handoff to the bulls, PEP could put in another bottom near this level.
If this area holds up as support, that's great. But it doesn't mean PEP is out of the woods.
The declining RSI (blue circle) is still a concern, as is PEP being under all three major moving averages. However, rarely over the past ten years has Pepsi stock maintained a dividend yield above 3%. That's not to say it can't pay it, but rather, investors usually gobble up enough of the stock where it typically yields 2.25% to 2.75%.
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At 3.3%, this level seems too high for PEP. Either way, it's a low-risk bet for new investors buying today, as they could bail on a break of $95 if they want to limit their exposure.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
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The post 5 Top Stock Trades for Monday Morning 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 deal vaulted PYPL stock over downtrend resistance, a level it initially broke over on Thursday but failed to close above. That actually bodes well for the bull case, in my opinion. With that in mind, let's get a look at our top stock trades for this week.
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Top Stock Trades for Monday #1: PayPal (PYPL) PayPal Holdings Inc (NASDAQ: PYPL ) made a deal to buy iZettle for $2.2 billion to get into the small business payment space. Top Stock Trades for Monday #3: Nordstrom (JWN) Nordstrom, Inc. (NYSE: JWN ) stock dumped 10% after the company reported earnings on Friday morning. Top Stock Trades for Monday #4: Deere (DE) It's good to see Deere & Company (NYSE: DE ) stock get some mojo back.
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Top Stock Trades for Monday #3: Nordstrom (JWN) Nordstrom, Inc. (NYSE: JWN ) stock dumped 10% after the company reported earnings on Friday morning. Top Stock Trades for Monday #5: PepsiCo (PEP) My oh my, what happened to PepsiCo, Inc. (NYSE: PEP ) stock? That actually bodes well for the bull case, in my opinion.
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With that in mind, let's get a look at our top stock trades for this week. That actually bodes well for the bull case, in my opinion. Top Stock Trades for Monday #1: PayPal (PYPL) PayPal Holdings Inc (NASDAQ: PYPL ) made a deal to buy iZettle for $2.2 billion to get into the small business payment space.
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12be58a9-deca-4172-9cd9-a0ea5b7af0ad
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722014.0
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2018-05-21 00:00:00 UTC
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Deere & Company (DE) Looks Good: Stock Adds 5.8% in Session
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DE
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https://www.nasdaq.com/articles/deere-company-de-looks-good%3A-stock-adds-5.8-in-session-2018-05-21
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nan
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nan
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Deere & CompanyDE was a big mover last session, as the company saw its shares rise nearly 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company-as the stock is now up 6.3% in the past one-month time frame.
The move came after the company raised outlook for fiscal 2018 on the back of strong demand for its construction equipment and also declared plans to hike prices to offset the impact of increasing costs.
The company has seen two negative estimate revisions in the past few weeks, while its Zacks Consensus Estimate for the current quarter has also moved lower over the past few weeks, suggesting there may be trouble down the road. So make sure to keep an eye on this stock going forward, to see if this recent move higher can last.
Deere & Company currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
Deere & Company Price
Deere & Company Price | Deere & Company Quote
Investors interested in the Manufacturing - Farm Equipment industry may consider Titan International, Inc. TWI , which has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Is DE going up? Or down? Predict to see what others think: Up or Down
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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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
Deere & Company (DE): Free Stock Analysis Report
Titan International, Inc. (TWI): 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 was a big mover last session, as the company saw its shares rise nearly 6% on the day. The move came after the company raised outlook for fiscal 2018 on the back of strong demand for its construction equipment and also declared plans to hike prices to offset the impact of increasing costs. Deere & Company currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
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Deere & Company Price Deere & Company Price | Deere & Company Quote Investors interested in the Manufacturing - Farm Equipment industry may consider Titan International, Inc. TWI , which has a Zacks Rank #1 (Strong Buy). Click to get this free report Deere & Company (DE): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE was a big mover last session, as the company saw its shares rise nearly 6% on the day.
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Deere & Company Price Deere & Company Price | Deere & Company Quote Investors interested in the Manufacturing - Farm Equipment industry may consider Titan International, Inc. TWI , which has a Zacks Rank #1 (Strong Buy). Click to get this free report Deere & Company (DE): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE was a big mover last session, as the company saw its shares rise nearly 6% on the day.
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Deere & CompanyDE was a big mover last session, as the company saw its shares rise nearly 6% on the day. Deere & Company Price Deere & Company Price | Deere & Company Quote Investors interested in the Manufacturing - Farm Equipment industry may consider Titan International, Inc. TWI , which has a Zacks Rank #1 (Strong Buy). Click to get this free report Deere & Company (DE): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here.
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1374240a-5eb6-4f99-8d10-a0e67b284a55
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722015.0
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2018-05-21 00:00:00 UTC
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Earnings Reaction History: Deere & Company, 50.0% Follow-Through Indicator, 5.8% Sensitive
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DE
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https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-500-follow-through-indicator-58-sensitive-2018-05
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nan
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nan
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Expected Earnings Release: 05/18/2018, Premarket
Avg. Extended-Hours Dollar Volume: $23,679,347
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: 33.3%
Average next regular session additional gain: 0.9%
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 33.3% of the time (2 events) the stock posted additional gains in the following regular session by an average of 0.9%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 100%
Average next regular session additional loss: 2.1%
Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock dropped further, adding to the extended-hours losses by an average of 2.1% 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: 33.3% Average next regular session additional gain: 0.9% 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 33.3% of the time (2 events) the stock posted additional gains in the following regular session by an average of 0.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 100% Average next regular session additional loss: 2.1% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock dropped further, adding to the extended-hours losses by an average of 2.1% 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: 33.3% Average next regular session additional gain: 0.9% 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 33.3% of the time (2 events) the stock posted additional gains in the following regular session by an average of 0.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 100% Average next regular session additional loss: 2.1% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock dropped further, adding to the extended-hours losses by an average of 2.1% 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: 33.3% Average next regular session additional gain: 0.9% 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 33.3% of the time (2 events) the stock posted additional gains in the following regular session by an average of 0.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 100% Average next regular session additional loss: 2.1% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock dropped further, adding to the extended-hours losses by an average of 2.1% by the following regular session close. Extended-Hours Dollar Volume: $23,679,347 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: $23,679,347 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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d788b87e-508d-47d4-b38c-e7237c2d5f97
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722016.0
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2018-05-21 00:00:00 UTC
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Noteworthy Monday Option Activity: DE, MMM, UNP
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DE
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-de-mmm-unp-2018-05-21
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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 16,581 contracts have traded so far, representing approximately 1.7 million underlying shares. That amounts to about 54.2% of DE's average daily trading volume over the past month of 3.1 million shares. Especially high volume was seen for the $160 strike call option expiring May 25, 2018 , with 1,075 contracts trading so far today, representing approximately 107,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $160 strike highlighted in orange:
3M Co (Symbol: MMM) saw options trading volume of 17,752 contracts, representing approximately 1.8 million underlying shares or approximately 46.6% of MMM's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $210 strike call option expiring June 15, 2018 , with 5,183 contracts trading so far today, representing approximately 518,300 underlying shares of MMM. Below is a chart showing MMM's trailing twelve month trading history, with the $210 strike highlighted in orange:
And Union Pacific Corp (Symbol: UNP) options are showing a volume of 16,918 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 46.6% of UNP's average daily trading volume over the past month, of 3.6 million shares. Particularly high volume was seen for the $152.50 strike call option expiring June 15, 2018 , with 7,718 contracts trading so far today, representing approximately 771,800 underlying shares of UNP. Below is a chart showing UNP's trailing twelve month trading history, with the $152.50 strike highlighted in orange:
For the various different available expirations for DE options , MMM options , or UNP 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 $160 strike call option expiring May 25, 2018 , with 1,075 contracts trading so far today, representing approximately 107,500 underlying shares of DE. Especially high volume was seen for the $210 strike call option expiring June 15, 2018 , with 5,183 contracts trading so far today, representing approximately 518,300 underlying shares of MMM. Particularly high volume was seen for the $152.50 strike call option expiring June 15, 2018 , with 7,718 contracts trading so far today, representing approximately 771,800 underlying shares of UNP.
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Below is a chart showing DE's trailing twelve month trading history, with the $160 strike highlighted in orange: 3M Co (Symbol: MMM) saw options trading volume of 17,752 contracts, representing approximately 1.8 million underlying shares or approximately 46.6% of MMM's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $210 strike call option expiring June 15, 2018 , with 5,183 contracts trading so far today, representing approximately 518,300 underlying shares of MMM. Particularly high volume was seen for the $152.50 strike call option expiring June 15, 2018 , with 7,718 contracts trading so far today, representing approximately 771,800 underlying shares of UNP.
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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 16,581 contracts have traded so far, representing approximately 1.7 million underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $160 strike highlighted in orange: 3M Co (Symbol: MMM) saw options trading volume of 17,752 contracts, representing approximately 1.8 million underlying shares or approximately 46.6% of MMM's average daily trading volume over the past month, of 3.8 million shares. Particularly high volume was seen for the $152.50 strike call option expiring June 15, 2018 , with 7,718 contracts trading so far today, representing approximately 771,800 underlying shares of UNP.
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Below is a chart showing DE's trailing twelve month trading history, with the $160 strike highlighted in orange: 3M Co (Symbol: MMM) saw options trading volume of 17,752 contracts, representing approximately 1.8 million underlying shares or approximately 46.6% of MMM's average daily trading volume over the past month, of 3.8 million shares. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 46.6% of UNP's average daily trading volume over the past month, of 3.6 million shares. Particularly high volume was seen for the $152.50 strike call option expiring June 15, 2018 , with 7,718 contracts trading so far today, representing approximately 771,800 underlying shares of UNP.
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869cd45c-e4c7-4fa6-9a12-85e729c62b1e
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722017.0
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2018-05-18 00:00:00 UTC
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Deere & Company Shares Head Higher Despite Earnings Miss
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DE
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https://www.nasdaq.com/articles/deere-company-shares-head-higher-despite-earnings-miss-2018-05-18
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company (NYSE: DE ) stock was on the rise today despite reporting an earnings miss for its fiscal second quarter of 2018.
Source: Ford8n via Flickr (Modified)
During its fiscal second quarter of the year, Deere & Company reported earnings per share of $3.14. This is an up from the company's earnings per share of $2.49 reported in the same period of the year prior. However, it wasn't able to match Wall Street's earnings per share estimate of $3.30 for the quarter.
Net income reported by Deere & Company for its fiscal second quarter of 2018 came in at $1.21 billion. This is an improvement over the maker of farm equipment's net income of $808 million that was reported in its fiscal second quarter of 2017.
Deere & Company also reported operating income of $1.49 billion for its fiscal second quarter of the year. This is an increase over the company's operating income of $1.28 billion that was reported for the same time last year.
Deere & Company's earnings report for its fiscal second quarter of 2018 also includes revenue of $10.72 billion . The company's revenue from its fiscal second quarter of the previous year was $8.29 billion. Analysts' were looking for DE to report revenue of $9.83 billion for the fiscal second quarter of the year.
7 Cheap Stocks With Strong Technical Signals
Deere & Company says that it is expecting revenue for the fiscal full year of 2018 to increase by roughly 26% from fiscal 2017 revenue. Revenue from the previous year was $29.74 billion. Wall Street is estimating revenue of $33.48 billion for the fiscal year.
DE stock was up 6% as of noon Friday.
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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 Shares Head Higher Despite 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 second quarter of the year, Deere & Company reported earnings per share of $3.14. Compare Brokers The post Deere & Company Shares Head Higher Despite Earnings Miss appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was on the rise today despite reporting an earnings miss for its fiscal second quarter of 2018.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was on the rise today despite reporting an earnings miss for its fiscal second quarter of 2018. Source: Ford8n via Flickr (Modified) During its fiscal second quarter of the year, Deere & Company reported earnings per share of $3.14. Deere & Company also reported operating income of $1.49 billion for its fiscal second quarter of the year.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was on the rise today despite reporting an earnings miss for its fiscal second quarter of 2018. Deere & Company also reported operating income of $1.49 billion for its fiscal second quarter of the year. 7 Cheap Stocks With Strong Technical Signals Deere & Company says that it is expecting revenue for the fiscal full year of 2018 to increase by roughly 26% from fiscal 2017 revenue.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was on the rise today despite reporting an earnings miss for its fiscal second quarter of 2018. Deere & Company also reported operating income of $1.49 billion for its fiscal second quarter of the year. Deere & Company's earnings report for its fiscal second quarter of 2018 also includes revenue of $10.72 billion .
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e701d165-2585-43c7-b5f8-88f424e0d277
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722018.0
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2018-05-18 00:00:00 UTC
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Mid-Day Market Update: Shineco Rises After Q3 Results; Campbell Soup Shares Slide
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DE
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https://www.nasdaq.com/articles/mid-day-market-update-shineco-rises-after-q3-results-campbell-soup-shares-slide-2018-05-18
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nan
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nan
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Midway through trading Friday, the Dow traded up 0.15 percent to 24,750.46 while the NASDAQ declined 0.18 percent to 7,368.83. The S&P also fell, dropping 0.13 percent to 2,716.71.
Leading and Lagging Sectors
On Friday, the industrial shares rose 0.39 percent. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 5 percent, and HC2 Holdings, Inc. (NYSE: HCHC ) up 4 percent.
In trading on Friday, energy shares fell 0.70 percent.
Top Headline
Deere & Company (NYSE: DE ) reported weaker-than-expected results for its second quarter.
Deere said it earned $3.14 per share in the first quarter on net sales from equipment operations of $9.747 billion versus Wall Street's estimate of $3.29 per share on revenue of $9.83 billion.
Deere projects Q3 equipment sales to rise 35 percent and FY18 equipment sales to increase 30 percent.
Equities Trading UP
Mannatech, Incorporated (NASDAQ: MTEX ) shares shot up 24 percent to $19.70 after the company reported commencement of modified Dutch auction cash tender for up to $16 million of common stock.
Shares of Quotient Limited (NASDAQ: QTNT ) got a boost, shooting up 15 percent to $5.3699 following commencement of EU blood grouping field trial.
Shineco, Inc. (NASDAQ: TYHT ) shares were also up, gaining 15 percent to $1.96 following Q3 results. Shineco posted Q3 earnings of $0.21 per share on sales of $13.3 million.
Equities Trading DOWN
Agile Therapeutics, Inc. (NASDAQ: AGRX ) shares dropped 76 percent to $0.5999 after the FDA announced significant concerns regarding the adhesion of Twirla.
Shares of Campbell Soup Company (NYSE: CPB ) were down 11 percent to $35.02. Campbell Soup reported upbeat Q3 earnings, but sales missed estimates. The company lowered its FY18 outlook and disclosed that its CEO abruptly stepped down.
Raven Industries, Inc. (NASDAQ: RAVN ) was down, falling around 12 percent to $37.25. Raven Industries posted upbeat Q1 earnings, while revenue missed estimates.
Commodities
In commodity news, oil traded down 0.17 percent to $71.37 while gold traded up 0.17 percent to $1,291.60.
Silver traded down 0.04 percent Friday to $16.475, while copper fell 0.11 to $3.0855.
Eurozone
European shares were lower today. The eurozone's STOXX 600 declined 0.41 percent, the Spanish Ibex Index fell 1.12 percent, while Italy's FTSE MIB Index dropped 1.67 percent. Meanwhile the German DAX fell 0.43 percent, and the French CAC 40 fell 0.25 percent while U.K. shares fell 0.24 percent.
Economics
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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Equities Trading UP Mannatech, Incorporated (NASDAQ: MTEX ) shares shot up 24 percent to $19.70 after the company reported commencement of modified Dutch auction cash tender for up to $16 million of common stock. Midway through trading Friday, the Dow traded up 0.15 percent to 24,750.46 while the NASDAQ declined 0.18 percent to 7,368.83. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 5 percent, and HC2 Holdings, Inc. (NYSE: HCHC ) up 4 percent.
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Top Headline Deere & Company (NYSE: DE ) reported weaker-than-expected results for its second quarter. Midway through trading Friday, the Dow traded up 0.15 percent to 24,750.46 while the NASDAQ declined 0.18 percent to 7,368.83. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 5 percent, and HC2 Holdings, Inc. (NYSE: HCHC ) up 4 percent.
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Midway through trading Friday, the Dow traded up 0.15 percent to 24,750.46 while the NASDAQ declined 0.18 percent to 7,368.83. The eurozone's STOXX 600 declined 0.41 percent, the Spanish Ibex Index fell 1.12 percent, while Italy's FTSE MIB Index dropped 1.67 percent. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 5 percent, and HC2 Holdings, Inc. (NYSE: HCHC ) up 4 percent.
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Midway through trading Friday, the Dow traded up 0.15 percent to 24,750.46 while the NASDAQ declined 0.18 percent to 7,368.83. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 5 percent, and HC2 Holdings, Inc. (NYSE: HCHC ) up 4 percent. Top Headline Deere & Company (NYSE: DE ) reported weaker-than-expected results for its second quarter.
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6ae6b2e2-9e94-474e-8094-893142a092c9
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722019.0
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2018-05-18 00:00:00 UTC
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Deere (DE) Q2 Earnings Lag, Sales Meet Estimates, View Up
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DE
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https://www.nasdaq.com/articles/deere-de-q2-earnings-lag-sales-meet-estimates-view-up-2018-05-18
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nan
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nan
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Deere & CompanyDE 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 & Company Price, Consensus and EPS Surprise
Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote
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.
Share Price Performance
Deere has outperformed the industry with respect to price performance, over the past year. While the stock has appreciated 30%, the industry recorded growth of 26% during the same time frame.
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Caterpillar Inc. CAT , H&E Equipment Services, Inc. HEES and Terex Corporation TEX . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has a long-term earnings growth rate of 13.3%. The stock has appreciated 53% in a year's time.
H&E Equipment has a long-term earnings growth rate of 17.4%. The company's shares have surged around 112% during the past year.
Terex has a long-term earnings growth rate of 20.2%. Its shares have rallied 32% in the past year.
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): 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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Deere & CompanyDE reported second-quarter fiscal 2018 (ended Apr 29, 2018) adjusted earnings of $3.14 per share, which increased 26% year over year. 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. Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Deere's acquisition of the Wirtgen Group in December 2017 added 12% to net sales in the fiscal second quarter.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Deere's acquisition of the Wirtgen Group in December 2017 added 12% to net sales in the fiscal second quarter. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE reported second-quarter fiscal 2018 (ended Apr 29, 2018) adjusted earnings of $3.14 per share, which increased 26% year over year.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Deere's acquisition of the Wirtgen Group in December 2017 added 12% to net sales in the fiscal second quarter. For fiscal 2018, Deere expects net sales to increase about 26% year over year and projects net income of about $2.3 billion. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere & CompanyDE 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. 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.
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58567485-52e1-4d1e-8f69-2a77a1710c6c
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722020.0
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2018-05-18 00:00:00 UTC
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Morning Movers: AMD Higher on Upbeat Street View, Cooler on Campbell Soup
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https://www.nasdaq.com/articles/morning-movers-amd-higher-upbeat-street-view-cooler-campbell-soup-2018-05-18
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Markets seem unfazed so far by gloomy news on trade and are heading into the weekend looking for direction.
The major indices are looking to open flat-to-slightly higher Friday morning, Dow Jones futures pointing toward about a 30-point opening gain. Oil and Treasury yields have eased slightly.
Bloomberg News
China is denying rumors that it is willing to buy an extra $200 billion in U.S. goods per year. Apparently they already have all the pizza they need. "These rumors are not true," foreign ministry spokesman Lu Kang told reporters Friday morning.
I guess we'll just have to keep… er… sending them pieces of paper printed by the Fed in return for all those iPhones.
Meanwhile U.S. trade representative Robert Lighthizer says we are "nowhere near" a new deal on NAFTA.
Nothing to see here, folks, move along.
China's Shanghai Composite stock index is up over 1% overnight, while Japan's Nikkei 225, Korea's Kospi and Hong Kong's Hang Seng are all higher. European markets are mixed to down, with Spain's Ibex 35 off more than half a percent.
Meanwhile the big news is that two people who have absolutely nothing to do with you are getting married tomorrow several thousand miles away at a wedding to which you're not invited. The latest Brexit worries have the British pound hovering near multi-month lows at $1.35, which is great news for all those elitist royal wedding guests who want to do some extra shopping. Conspiracy theory, anyone?
Earnings & News
Advanced Micro Devices (AMD) is up 3.8% to $13.18 after Cowen & Co. initiated coverage with an Outperform rating.
Applied Materials (AMAT) is down 5.7% to $50.90 after reporting second-quarter earnings. The chip-equipment maker earned $1.22 a share on revenue of $4.57 billion; analysts were looking for earnings of $1.15 a share on revenue of $4.47 billion. However, for the third quarter, it expects to earn between $1.13 and $1.21 a share, on revenue of $4.33 billion to $4.53 billion. Consensus estimates call for EPS of $1.16 on revenue of $4.54 billion. Goldman Sachs also downgraded the shares to Neutral.
AstraZeneca (AZN) is down 2.4% to $35.56 after reporting first-quarter earnings. The drug maker earned 48 cents a share on revenue of $5.18 billion. Analysts were looking for EPS of 61 cents on revenue of $5.24 billion. It also reaffirmed full-year guidance, as it expects EPS of between $3.30 and $3.50, compared with the $3.46 consensus EPS estimate.
Campbell Soup (CPB) is down 5.7% to $36.99 after reporting third-quarter earnings. The food maker earned 70 cents a share, a dime ahead of expectations, on revenue of $2.13 billion, which matched consensus estimates. For the full year, it expects to earn between $2.85 and $2.90 a share, on revenue of $8.68 billion to $8.84 billion. Analysts are looking for EPS of $3.12 on revenue of $8.76 billion.
Deere (DE) is up 0.4% to $147.35 after reporting second-quarter earnings. The machinery maker earned $3.14 a share on revenue of $9.75 billion. Analysts were looking for EPS of $3.33 on revenue of $9.38 billion. For the full year, it raised guidance, and now expects revenue of $33.56 billion, above the $33.55 billion consensus.
Nordstrom (JWM) is down 7.4% to $47.17 after reporting first-quarter earnings. The department store earned 51 cents a share on revenue of $3.47 billion. Analysts were looking for EPS of 45 cents on revenue of $3.39 billion. For the full year, it expects EPS of between $3.35 and $3.55 on revenue of $15.2 billion to $15.4 billion. Consensus estimates call for EPS of $3.44 on revenue of $15.7 billion.
Nvidia (NVDA) is up 1% to $250.16 after Cowen & Co. initiated coverage with an Outperform rating.
Planet Fitness (PLNT) is down 2.8% to $39.75 after Imperial Capital downgraded it to In-Line.
PayPal Holdings (PYPL) is up 1.5% to $80.40 on news that it will acquire the Swedish payment firm iZettle for $2.2 billion.
- Teresa Rivas
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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China's Shanghai Composite stock index is up over 1% overnight, while Japan's Nikkei 225, Korea's Kospi and Hong Kong's Hang Seng are all higher. Markets seem unfazed so far by gloomy news on trade and are heading into the weekend looking for direction. Bloomberg News China is denying rumors that it is willing to buy an extra $200 billion in U.S. goods per year.
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Markets seem unfazed so far by gloomy news on trade and are heading into the weekend looking for direction. Bloomberg News China is denying rumors that it is willing to buy an extra $200 billion in U.S. goods per year. Meanwhile U.S. trade representative Robert Lighthizer says we are "nowhere near" a new deal on NAFTA.
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Markets seem unfazed so far by gloomy news on trade and are heading into the weekend looking for direction. Bloomberg News China is denying rumors that it is willing to buy an extra $200 billion in U.S. goods per year. Meanwhile U.S. trade representative Robert Lighthizer says we are "nowhere near" a new deal on NAFTA.
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Markets seem unfazed so far by gloomy news on trade and are heading into the weekend looking for direction. Bloomberg News China is denying rumors that it is willing to buy an extra $200 billion in U.S. goods per year. Meanwhile U.S. trade representative Robert Lighthizer says we are "nowhere near" a new deal on NAFTA.
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722021.0
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2018-05-18 00:00:00 UTC
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Deere's (DE) Q2 Earnings Lag Estimates, Revenues In Line
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https://www.nasdaq.com/articles/deeres-de-q2-earnings-lag-estimates-revenues-in-line-2018-05-18
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Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported second-quarter fiscal 2018 results, wherein adjusted earnings of $3.14 fell short of the Zacks Consensus Estimate of $3.33.
Revenue: Deere posted revenues of $9.75 billion, which came in-line with the Zacks Consensus Estimate.
Outlook: 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 rise by 35% in third-quarter fiscal 2018, compared with year-ago periods. Deere stated that 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 effect of about 1% for the fiscal and for the 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.
Earnings Estimates Revision: The Zacks Consensus Estimate for the fiscal second quarter has moved south over the past 30 days. Coming to earnings surprise history, Deere has an impressive track record. In the past 4 quarters, the company has outpaced the Zacks Consensus Estimate on all occasions, with an average beat of 17.25%.
Deere & Company Price and EPS Surprise
Deere & Company Price and EPS Surprise | Deere & Company Quote
Zacks Rank: Currently, Deere carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Market Reaction: Deere's shares lost around 0.8% in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on Deere earnings report!
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Deere & Company (DE): 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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Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported second-quarter fiscal 2018 results, wherein adjusted earnings of $3.14 fell short of the Zacks Consensus Estimate of $3.33. Revenue: Deere posted revenues of $9.75 billion, which came in-line with the Zacks Consensus Estimate. Outlook: Deere raised its total equipment sales growth outlook for fiscal 2018 to around 30% year over year from the prior guidance of about 29%.
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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 EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Zacks Rank: Currently, Deere carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. 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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Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported second-quarter fiscal 2018 results, wherein adjusted earnings of $3.14 fell short of the Zacks Consensus Estimate of $3.33. 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 EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Zacks Rank: Currently, Deere carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
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Deere stated that Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 18% 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. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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2018-05-18 00:00:00 UTC
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A Tale of Two Earnings Reports, Deere Misses and Rallies Anyway
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https://www.nasdaq.com/articles/tale-two-earnings-reports-deere-misses-and-rallies-anyway-2018-05-18
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Three weeks ago, heavy-equipment manufacturer Caterpillar ( CAT) reported the strongest quarter in its history and raised full year 2018 guidance by a full $2/share and the shares were punished by the market. ( Read our April 24th article on the reaction here>>)
The culprit seems to have been an ill-received comment on the investor conference call following the earnings report in which CFO Brad Halverson said that the blowout Q1 results represented a "High Water Mark" for the company.
CAT shares sold off sharply, finishing the next trading session at $144.44, down 6% for the day.
Though the shares have regained the bulk of that loss in the meantime, the message from investors was clear. It's not a case of "What have you done for me lately?", but something more like "What are you going to do for me going forward."
This attitude was on display again Friday (in the opposite direction) as John Deere (DE) reported disappointing fiscal Q2 earnings of $3.14/share, missing the Zacks Consensus estimate of $3.33/share, and revenues of $9.75B, basically in line with estimates.
Deere share rallied sharply on Friday to $155, up $8.59 or 6% on the day.
Sales to the Agricultural sector are about 80% of Deere's revenues and the report references rising prices and accelerating future estimates for U.S. grains (Corn, Wheat and Soybeans), yet higher costs are impacting the bottom line for farmers, with net cash income for producers expected to fall in 2018, despite the higher sales prices.
Though financial metrics presented by Deere were somewhat mixed, the company provided an optimistic forecast, projecting full-year adjusted earnings of $3.1B, up from the prior guidance of $2.85B.
In an environment where investors are more concerned with the immediate future than recent results, Deere understands and produced a quarterly report that gave the markets exactly what they're looking for.
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
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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Though financial metrics presented by Deere were somewhat mixed, the company provided an optimistic forecast, projecting full-year adjusted earnings of $3.1B, up from the prior guidance of $2.85B. In an environment where investors are more concerned with the immediate future than recent results, Deere understands and produced a quarterly report that gave the markets exactly what they're looking for. This attitude was on display again Friday (in the opposite direction) as John Deere (DE) reported disappointing fiscal Q2 earnings of $3.14/share, missing the Zacks Consensus estimate of $3.33/share, and revenues of $9.75B, basically in line with estimates.
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This attitude was on display again Friday (in the opposite direction) as John Deere (DE) reported disappointing fiscal Q2 earnings of $3.14/share, missing the Zacks Consensus estimate of $3.33/share, and revenues of $9.75B, basically in line with estimates. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Deere share rallied sharply on Friday to $155, up $8.59 or 6% on the day.
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Sales to the Agricultural sector are about 80% of Deere's revenues and the report references rising prices and accelerating future estimates for U.S. grains (Corn, Wheat and Soybeans), yet higher costs are impacting the bottom line for farmers, with net cash income for producers expected to fall in 2018, despite the higher sales prices. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. This attitude was on display again Friday (in the opposite direction) as John Deere (DE) reported disappointing fiscal Q2 earnings of $3.14/share, missing the Zacks Consensus estimate of $3.33/share, and revenues of $9.75B, basically in line with estimates.
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Deere share rallied sharply on Friday to $155, up $8.59 or 6% on the day. This attitude was on display again Friday (in the opposite direction) as John Deere (DE) reported disappointing fiscal Q2 earnings of $3.14/share, missing the Zacks Consensus estimate of $3.33/share, and revenues of $9.75B, basically in line with estimates. Sales to the Agricultural sector are about 80% of Deere's revenues and the report references rising prices and accelerating future estimates for U.S. grains (Corn, Wheat and Soybeans), yet higher costs are impacting the bottom line for farmers, with net cash income for producers expected to fall in 2018, despite the higher sales prices.
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2018-05-18 00:00:00 UTC
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Consumer Sector Update for 05/18/2018: DE,MAT,PK,CPB
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https://www.nasdaq.com/articles/consumer-sector-update-05182018-dematpkcpb-2018-05-18
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Top Consumer Stocks
WMT -1.01%
MCD -0.21%
DIS -0.40%
CVS -1.38%
KO -0.25%
Consumer stocks were broadly lower today, with shares of consumer staples companies in the S&P 500 sinking almost 0.7% this afternoon while shares of consumer discretionary firms in the S&P 500 were slipping less than 0.1%.
Among consumer stocks moving on news:
+ Deere & Company ( DE ) was almost 6% higher late in Friday trading, retracing most of a 7% gain for farm and garden equipment company that followed it pledging to preserve profits by cutting costs and raising prices. Deere was addressing rising input and shipping costs "through a continued focus on structural cost reduction and future pricing actions," CEO Sam Allen said during a conference call Friday to discuss the company's disappointing Q2 financial results. Excluding one-time items, the company earned $3.14 on $9.75 billion in net sales. Analysts, on average, had been expecting non-GAAP net income of $3.33 per share on $9.83 billion in net sales during the three months ended April 29. Deere also is projecting 26% sale growth over year-ago levels for its FY18 ending in October compared with the analyst mean expecting 29.3% growth this year to $33.48
In other sector news:
+ Park Hotels & Resorts ( PK ) was hanging on to a moderate gain, rising less than 1% after climbing to within 13 cents of its 52-week high of $30.84 a share, after saying it would pay a special $0.45 per share dividend using proceeds from the $350 million sale of the Hilton Berlin hotel in Germany. Park Hotels will receive a $140 million pro-rata share of the sale proceeds based on its stake in the property joint venture. The company also said it will distribute the special dividend on July 16 to shareholders of record on June 29 in addition to its regular quarterly dividend of $0.43 per share.
- Mattel ( MAT ) has been grinding lower throughout Friday trading, recently sinking almost 3%, following reports the toy company rejected a merger offer from privately held MGA Entertainment. MGA Entertainment CEO Isaac Larian is said to have directly approached Mattel with his offer, which lacked details and financial terms but would keep Larian atop of the combined toy manufacturers, according to the Wall Street Journal, citing correspondence and people familiar with the matter.
- Campbell Soup Company ( CPB ) tumbled Friday after cutting its FY18 earnings outlook in addition to saying CEO Denise Morrison was stepping down, effective immediately, and will be replaced on an interim basis by current board member and former Electrolux chief executive Keith Morrison. The canned foods company is now expecting to earn between $2.85 to $2.90 per share for the 12 months ending in late July, down from its previous forecast range of $3.10 to $3.17 per share and trailing the Capital IQ consensus by at least $0.22 per share. It also revised its FY18 sales outlook, now projecting a 10% to 11% rise over prior-year levels compared with its prior guidance looking for a change of up to 1% either side of unchanged from last year's $7.89 billion in sales. The Street has been modelling an 11.1% year-over-year sales increase for FY18 to $8.76 billion.
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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Deere also is projecting 26% sale growth over year-ago levels for its FY18 ending in October compared with the analyst mean expecting 29.3% growth this year to $33.48 In other sector news: + Park Hotels & Resorts ( PK ) was hanging on to a moderate gain, rising less than 1% after climbing to within 13 cents of its 52-week high of $30.84 a share, after saying it would pay a special $0.45 per share dividend using proceeds from the $350 million sale of the Hilton Berlin hotel in Germany. Among consumer stocks moving on news: + Deere & Company ( DE ) was almost 6% higher late in Friday trading, retracing most of a 7% gain for farm and garden equipment company that followed it pledging to preserve profits by cutting costs and raising prices. Deere was addressing rising input and shipping costs "through a continued focus on structural cost reduction and future pricing actions," CEO Sam Allen said during a conference call Friday to discuss the company's disappointing Q2 financial results.
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Deere also is projecting 26% sale growth over year-ago levels for its FY18 ending in October compared with the analyst mean expecting 29.3% growth this year to $33.48 In other sector news: + Park Hotels & Resorts ( PK ) was hanging on to a moderate gain, rising less than 1% after climbing to within 13 cents of its 52-week high of $30.84 a share, after saying it would pay a special $0.45 per share dividend using proceeds from the $350 million sale of the Hilton Berlin hotel in Germany. - Campbell Soup Company ( CPB ) tumbled Friday after cutting its FY18 earnings outlook in addition to saying CEO Denise Morrison was stepping down, effective immediately, and will be replaced on an interim basis by current board member and former Electrolux chief executive Keith Morrison. Among consumer stocks moving on news: + Deere & Company ( DE ) was almost 6% higher late in Friday trading, retracing most of a 7% gain for farm and garden equipment company that followed it pledging to preserve profits by cutting costs and raising prices.
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Deere also is projecting 26% sale growth over year-ago levels for its FY18 ending in October compared with the analyst mean expecting 29.3% growth this year to $33.48 In other sector news: + Park Hotels & Resorts ( PK ) was hanging on to a moderate gain, rising less than 1% after climbing to within 13 cents of its 52-week high of $30.84 a share, after saying it would pay a special $0.45 per share dividend using proceeds from the $350 million sale of the Hilton Berlin hotel in Germany. Among consumer stocks moving on news: + Deere & Company ( DE ) was almost 6% higher late in Friday trading, retracing most of a 7% gain for farm and garden equipment company that followed it pledging to preserve profits by cutting costs and raising prices. Deere was addressing rising input and shipping costs "through a continued focus on structural cost reduction and future pricing actions," CEO Sam Allen said during a conference call Friday to discuss the company's disappointing Q2 financial results.
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Among consumer stocks moving on news: + Deere & Company ( DE ) was almost 6% higher late in Friday trading, retracing most of a 7% gain for farm and garden equipment company that followed it pledging to preserve profits by cutting costs and raising prices. Deere also is projecting 26% sale growth over year-ago levels for its FY18 ending in October compared with the analyst mean expecting 29.3% growth this year to $33.48 In other sector news: + Park Hotels & Resorts ( PK ) was hanging on to a moderate gain, rising less than 1% after climbing to within 13 cents of its 52-week high of $30.84 a share, after saying it would pay a special $0.45 per share dividend using proceeds from the $350 million sale of the Hilton Berlin hotel in Germany. Deere was addressing rising input and shipping costs "through a continued focus on structural cost reduction and future pricing actions," CEO Sam Allen said during a conference call Friday to discuss the company's disappointing Q2 financial results.
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2018-05-18 00:00:00 UTC
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Deere Company (DE) Q2 2018 Earnings Conference Call Transcript
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https://www.nasdaq.com/articles/deere-company-de-q2-2018-earnings-conference-call-transcript-2018-05-18
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Deere & Company (NYSE: DE)
Q2 2017 Earnings Conference Call
May 18, 2018, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and welcome to John Deere & Company second quarter earnings conference call. Your lines have been placed on listen only until the question and answer session after today's conference. I'd now like to turn over the call to Mr. Josh Jepsen, Director of Investor Relations. Thank you. You may begin.
Josh Jepsen -- Director of Investor Relations
Thanks, Angela. Hello. Also on the call today are Raj Kalthur, our Chief Financial Officer, Max Guinn, President of the Construction and Forestry Division, Ryan Campbell, Vice President and Comp Controller, and Brent Norwood, Manager, Investor Communications.
Today we'll take a closer look at Deere's second quarter earnings, then spend some time talking about our markets and current outlook for Fiscal 2018. After that, we'll respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed on our website at www.johndeere.com/earnings. First a reminder. This call is being broadcast live on the internet and recorded for future transmission and use by Deere & Company. Any other use, recording, or transmission of any portion of this copyrighted broadcast without the expressed written consent of Deere is strictly prohibited.
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Participants on the call including the Q&A session agree that their likeness and remarks in all media may be stored and used as part of the earnings call. This call includes forward-looking comments concerning the company's plans and projections for the future that are subject to important risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the company's most recent for 8-K and periodic reports filed with the Securities and Exchange Commission.
This call may include financial measures that are not conforming with financial principles generally accepted in the United States of America, GAAP. Additional information concerning these measures, including reconciliation to comparable GAAP measures is included in the release and posted on our website at www.johndeere.com/earnings under quarterly earnings and events.
Brent Norwood -- Manager, Investor Communications
Today, John Deere reported higher earnings for the second quarter. It was another strong performance helped by a broad-based improvement in market conditions and a favorable customer response to our innovative products. Our machinery sales are making solid gains in markets throughout the world, while construction equipment sales continued to move sharply higher.
Now, let's take a closer look at our second quarter results in detail beginning on slide three. Net sales and revenue were up 29% to $10.72 billion. Net income attributable to Deere & Company was $1.208 billion or $3.67 per share. The results for the quarter included a favorable net adjustment to provisional income taxes of $174 million. Excluding this item, adjusted net income was $1.034 billion.
On slide four, total worldwide equipment operations net sales were up 34% to $9.747 billion. Currency translation was positive by 3 points. The impact of acquisitions was 12 points.
Turning to a review of our individual businesses, starting with agriculture and turf on slide five -- net sales were up over 22% in the quarter over quarter comparison, primarily driven by higher shipment volumes and the favorable effect of currency translation. Operating profit was $1.056 billion, up 27% from the same quarter last year, excluding the impact from the sale of site one.
Operating margins for the quarter were 15%. Results benefited from higher shipment volumes partially offset by higher R&D as well as increases in production costs, comprised largely of higher freight and material cost. It's also important to note that over the quarter, Deere has made progress addressing supplier and logistics challenges, ensuring the products reach customers in a timely manner. Before we review the industry sales outlook, let's look at fundamentals affecting the ag. business.
On slide six, corn and soybean stocks to use ratios are expected to decline in response to increasing global demand and drought conditions in Argentina, which have lowered the country's corn and soybean production by roughly 25% and 33%, respectively. While wheat's stock to use ratio remains close to its highest use level in almost two decades, stocks are projected to decline modestly in 2018.
Slide seven outlines US farm cash receipts. 2018 farm cash receipts are estimated to be $375 billion, roughly flat with 2017. Rough crash receipts are expected to be on par with last year, as increased commodity prices are partially offset by lower forecast production. Receipts from livestock are also flat due to strong domestic and export demand, offset to an extent by growing supply and lower prices. While global trade concerns weigh on farmers, overall sentiment is holding, as commodity prices move upward and equipment demand shows broad-based improvement.
Our ag. economic outlook for the EU2 8 is on slide eight. Despite a late start to the season, crops are in fair condition and the crop value of production is expected to increase in 2018. Overall, arable farm margins remain slightly below long-term averages, although conditions differ by region. Some areas, such as northwest Europe, are showing signs of improvement in 2018. Margins for the dairy segment remain above long-term averages, though rising production may pressure prices later in the year.
Shifting to Brazil on slide nine, the chart on the left displays the crop value of agricultural production, a good proxy for the health of the agro business in Brazil. The value of ag production is now expected to be about the same as last year, with a record soybean harvest being partially offset by soft sugar prices .
On the right side of the slide, you will see eligible rates for ag-related government sponsored finance programs, rates for Moderfrota through June are shown below and are less favorable than the prevailing policy interest rate for the region. However, customers are anticipating lower rates in July and therefore shifting purchases into the second half of the year. This shift of sales is evident and a strong order book which is up from last year.
While the 2017-18 season began with soft industry fundamentals, farmer confidence has increased dramatically for the second half of the season as corn and soybean margins have benefited from rising commodity prices, record production and favorable FX movement. Our 2018 ag and turf industry outlooks are summarized on slide 10. Industry sales in the US and Canada are forecast to be up approximately 10% for the year.
Replacement demand continued to drive sales as customers cite the need for increased productivity, updated technology and equipment within an updated warranty period. Replacement demand is reflected in the results of our 2018 combine early order program, which increased by double-digits from the previous year.
Similarly, our large tractor order book now extends into October. The EU 28 industry outlook is forecast to be up about 5% in 2018, unchanged from previous guidance. In South America, industry sales of tractors and combines are projected to be flat to up 5% for the year. This is primarily driven by strong industry fundamentals in Brazil, which is offsetting weakness in Argentina caused by drought conditions experienced in the first half of the year. The region, as a whole, continues to deliver excellent operating results, as Deere extends its market leading position and achieves strong financial performance.
Shifting to Asia, industry sales are expected to be relatively unchanged for 2017, though strong demand for tractors in India is driving improved results for the region. Turning to another product category, industry retail sales in the US and Canada are projected to be flat to up 5% in 2018.
Putting this all together on slide 11, Fiscal Year 2018 Deere sales of worldwide ag and turf equipment are now forecast to be up about 14%, including about one point of positive currency translation. The ag and turf division's operating margin is forecast to be about 12.5% for the year, up roughly two points from 2017 after excluding the gains on the sale of site one.
Importantly, the impact of higher freight and material cost is being addressed through continued structural cost reductions and future pricing actions. Now, let's focus on construction and forestry on slide 12. Net sales for the quarter were up 84% compared with last year, driven by strong demand for construction and forestry equipment, as well as by the acquisition of Wirtgen, which closed on December 1st of 2017.
Second quarter operating profit was $259 million, benefiting from higher shipment volumes as well as the inclusion of Wirtgen. However, Wirtgen's profit contribution has been limited due to the unfavorable effects of first year purchase accounting associated with the transaction. The NF operating margins were 9.6% for the quarter, but 12% excluding Wirtgen.
At this point, I'd like to welcome Max Guinn, President of Deere's Construction and Forestry business to the call. He will provide comments on the conditions in C&F and an update on the Wirtgen acquisition. Max?
Max Guinn -- President, Construction & Forestry Division
Thank you, Brent, good morning, everybody. We're on slide 13. Let me start off by saying the economic environment for the construction, forestry, and road building industry looks good and it continues to support increased demand for new and used equipment. For the year, US GDP is forecast to grow at 2.7%. That's above the 20-year average.
Meanwhile, housing demand remains solid with housing starts expected to be 1.3 million units for 2018. That's a result of inventories of new and existing homes that are available for sale being at 36-year lows that provides a foundation for continued growth in new home construction. In 2018, construction investment is forecast to grow 2.9%, led by increased activity in oil and gas and by residential construction.
Oil prices, we had forecast to be $63.00 a barrel for the year. That's a price that's comfortably above breakeven economics for US shale oil producers and it supports continued drilling and production growth. Obviously, prices have progressed further and faster than we expected, so we're likely going to update that forecast. That's good news though.
In addition, machinery rental utilization rates continue improving and rental pricing is gaining positive traction. These positive economic factors are also reflected in a strong order book and resulting in significant orders that are already being placed for 2019.
Let's move to slide 14 and an update on the newly acquired Wirtgen Group. Wirtgen is the global leader in road construction equipment. The acquisition greatly enhances Deere's exposure to global transportation infrastructure. That's a segment we view as faster growing and less cyclical than the broader construction market. Global transportation investment this year is forecast around 6%, driving increased demand for road construction equipment, such as milling machines, rollers, and asphalt pavers.
Those are all products in which Wirtgen maintains a market-leading position globally. Importantly, transportation spending is solid in core regions such as the US and Europe and continues to see double-digit growth in China and India. Both of those are key growth markets for Wirtgen due to market-leading position.
Turning to company performance, Wirtgen continues to meet our high expectations through its relentless focus on market share and operating excellence. The current order book is very strong. Operating margins are expected to exceed 16% when excluding the impact of purchase accounting.
Integration is well under way with the joint Deere-Wirtgen team working toward the synergy target of €100 million by 2022. I'm pleased to say that we see a clear path to achieving that level of savings and that timing. Obviously, we'll continue to seek out other value enhancing opportunities as integration activities continue.
As we learn more about Wirtgen's business, we're increasingly finding opportunities to leverage the two distribution channels. Just two examples -- in the US, Deere's channel was able to fill a coverage gap for Wirtgen in West Virginia, while the opposite was true in the Mexico City territory. We anticipate further opportunities to leverage the two channels as integration progresses.
For Fiscal Year 2018, Wirtgen is forecast to produce $3.2 billion in revenue. Remember, that represents 10 months of ownership. Additionally, we now project that Wirtgen will contribute $100 million in operating profit for the year, even with the unfavorable impact of acquisition cost of purchase accounting. Importantly, Wirtgen is generating strong positive cashflow in the current fiscal year. Beyond 2018, Wirtgen operating margins are estimated to be in the 13% to 14% range and that includes purchase accounting adjustments.
So, finally, I want to shed a little light on what things look like with the overall C&F business for the rest of the year. We're moving to slide 15. Deere's construction and forestry sales are now forecast to be up about 83% in 2018 as a result of stronger demand for equipment as well as the acquisition of Wirtgen. As we said earlier, the revenue forecast includes about $3.2 billion in sales attributed to the acquisition.
The forecast for global forestry markets is up 10% as a result of improvement in sales in the US and Canada and strong demand for products in Europe and Russia. C&F's full year operating margin is now projected to be about 8.5%. That includes the negative impact of purchase accounting and acquisition cost from Wirtgen. Excluding Wirtgen, C&F projects operating margins to be about 11%. That operating profit guidance is partially driven by pricing actions that we're taking now and will take effect in the second half of the year. We expect to offset material cost inflation and allow for continued margin growth in future quarters.
I'll turn it back over to Brent.
Brent Norwood -- Manager, Investor Communications
Let's move now to our financial services operations. Slide 16 shows the provision for credit losses as a percentage of the average owned portfolio. At the end of April, the annualized provision for credit losses was 9 basis points, reflecting the continued excellent quality of our portfolios.
The financial forecast for 2018 shown on the slide contemplates a loss provision of about 21 basis points, one basis point lower than our previous forecast. This would put loss provisions for the year just below the 10-year average of 25 basis points and the 15-year average of 27 points.
Moving to slide 17, worldwide financial services net income attributable to Deere & Company was $104 million in the second quarter, roughly flat with last year. The results for the quarter included $33 million of net tax reform related charges arising from the remeasurement of deferred tax assets and deemed earnings repatriation.
For the full year in 2018, net income is forecast to be about $800 million. Excluding the impact for the previously mentioned tax reform related items, adjusted net income is forecast to be $571 million. Beyond 2018, effective tax rates for John Deere Financial are forecast to be between 24% and 26%.
Slide 18 outlines receivables and inventories. For the company as a whole, receivables and inventories ended the quarter up $4.8 billion, about $200 million of the change relates to currency translation. In the C&F division, the increase is largely attributable to Wirtgen, while for ag, the increase is due to higher sales.
By the end of Fiscal Year 2018, receivables and inventories are expected to increase about $2 billion from 2017, driven largely by the inclusion of Wirtgen as well as the higher sales across the company. Slide 19 shows cost of sales as a percentage of net sales. Cost of sales for the second quarter was 75.2%. Our 2018 cost of sales guidance is about 76% of net sales, up 1% from previous guidance.
When modeling 2018, keep these unfavorable impacts in mind. Higher production costs such as freight and material costs and higher incentive compensation costs. On the favorable side, we expect price realization of about 1 point and a more positive product mix.
Now, let's look at some additional details. With respect to R&D expense on slide 20, R&D was up 28% in the second quarter. Currency translation had an unfavorable impact of 2 points, while another 10 points was related to the acquisitions of Wirtgen and Blue River Technology.
Our 2018 forecast calls for R&D to be up about 20% with acquisition-related activity accounting for 9 points of the increase and currency translation for 1pt. The balance of the R&D increase relates to strategic investments in large ag and precision ag that help drive growth for these key areas.
Moving now to slide 21, SA&G expense for the equipment operations was up 24% in the second quarter with acquisition-related activities, incentive compensation, and currency translation accounting for most of the change. Our 2018 forecast for SA&G expense is up about 18%, excluding acquisition-related expenses, SA&G is forecast to be up about 2% in 2018.
Turning to slide 22, the equipment operations tax rate was 8% in the second quarter, primarily due to the favorable adjustment of $207 arising from tax reform-related net deferred tax asset remeasurement and deemed earnings repatriation. For the remainder of the year, the effective tax rate is expected to be in the range of 25% to 27%, which implies a full-year effective tax rate of about 56%. Beyond Fiscal Year 2018, Deere's effective tax rate is expected to be between 25% and 27%.
Slide 23 shows our equipment operations history of strong cashflow. Flow from the equipment operations is now forecast to be about $3.8 billion in 2018 compared to previous guidance of $4.4 billion. The decrease in forecast relates to an anticipated payment of $1 billion toward pension and OPED liability net of taxes.
The company's financial outlook is on slide 24. Third quarter equipment sales are forecast to be up approximately 35% compared with the same quarter last year. Our full year outlook now calls for net sales to be up about 30%, which includes about one point of price realization and one point for positive currency translation. Finally, our full-year 2018 GAAP net income forecast is now about $2.3 billion. The full year net income forecast includes charges of $803 million resulting from tax reform-related net-deferred tax asset remeasurement and deemed arranged repatriation.
Excluding the impact of these items, adjusted net income is forecast to be about $3.1 billion. It is important to note the previous adjusted net income guidance of $2.85 billion excluded the benefit of the lower tax rate in order to compare to our opening budget guidance given in November of 2017.
This quarter's guidance only excludes the remeasurement of deferred tax assets and deemed earnings repatriation but includes the benefit of the ongoing lower tax rate.
I will now turn the call over the Raj Kalathur for closing comments. Raj?
Raj Kalathur -- Chief Financial Officer
Before we respond to your questions, let me share a few thoughts on the second quarter and our expectations for the rest of the year. First, important to note, we are seeing strong demand across geographical regions from both ag and turf, and C&F divisions. Replacement demand continues to drive equipment sales in large ag as customers express their need for increased precision and productivity enabled by our latest technologies.
For C&F, as you heard from Max, strong economic indicators such as GDP growth, housing starts and rising oil prices are generating robust equipment demand, which is reflected in a healthy order book for the remainder of 2018, pressing into 2019.
Second, although the economic environment is largely positive for demand, there are some supply side headwinds to overcome. Material and freight costs have exceeded our forecast for the year due largely to inflation in U.S. steel prices and a tight market for logistics providers.
As Max indicated, we are executing pricing actions for the C&F business that will take effect over the remainder of the year. Importantly, these actions should cover material inflation projected for the C&F division. For ag and turf, we generally utilize early order programs for seasonal equipment and in advance order book for our large tractor products. Orders are typically backed by retail customers.
As a result, we typically implement price increases on an annual basis and have a strong history of price utilization over an extended period. As we set prices for the next model year, we will take into consideration not only the additional value that we bring to our customers but also overall market conditions, including inflationary pressures.
At this time, we are confident that our actions, both in making structural cost reductions and in model year '19 prices will more than offset inflation in 2019. Lastly, strong levels of demand we are experiencing across our two equipment divisions will result in excellent cashflow generation for the year.
Note that we have resumed share repurchases in the second quarter. We also anticipate funding our pension and OPEB liabilities up to $1 billion over the course of the third quarter, in order to take advantage of the previous tax rate of 35%. Additionally, it's our desire to maintain a dividend payout ratio, it targets 25% to 35% of mid-cycle earnings and can be sustained through the cycle.
Based on our performance in the previous cycle and the inclusion of Wirtgen, further dividend increases will be under consideration during the remainder of this year. Overall, we are encouraged by the outlook for improving demand in 2018 and will continue to work and delivering strong results for the remainder of the year. Josh?
Josh Jepsen -- Director of Investor Relations
Now we're ready to begin the Q&A portion of the call. The operator will instruct you on the polling procedure. In consideration of others, in our hope to allow more people to participate in the call, please limit yourself to one question. If you have additional questions, we ask that you rejoin the queue. As a reminder, Max Guinn, President of C&F is available for questions as well. Operator?
Questions and Answers:
Operator
Thank you. As a reminder, to ask a question, please press *1. One moment please for the first question. Our first question comes from Jamie Cook with Credit Suisse, your line is open.
Jamie Cook -- Credit Suisse -- Analyst
Good morning. I guess, two questions -- one, Raj, I was hoping that you could elaborate a little more on the supply chain issues in the quarter in terms of, were they the same issues versus last quarter and what's embedded in the guide for remaining back half for the year?
And then my second question is longer term thinking about margins in the ag business. It sounds like based on what you're saying, given you're going after pricing action, inflation and assuming the markets hold up, should we still -- as we look pass the next two quarters, should we still be able to generate above average incrementals for the ag business, given we're still well below normalized levels? Thanks.
Raj Kalathur -- Chief Financial Officer
Hey, Jamie, I think, we will take second one first. We do anticipate strong margins going into the future in ag. None of that has changed. So, the constraints here facing are more short-term. As we described, it's purely steel inflation and also logistics inflation. With respect to your question on supply issues, it's actually improved very nicely. Availability issues are less of a concern now than it was just a couple of months back.
Josh Jepsen -- Director of Investor Relations
The only thing I would add there is we saw most significant issues we experienced really in the February time frame and we've seen improvements since there as we continue to execute and get product out to dealers and customers.
Jamie Cook -- Credit Suisse -- Analyst
But my question is do the supply chain issues constrain your top line at all I guess for the back half of 2019? That's what I'm trying to figure out.
Josh Jepsen -- Director of Investor Relations
No. I think when you look at that we actually -- you think about both of our divisions -- you saw volume actually improve slightly from the previous guidance.
Operator
Our next question comes from Jerry Revich with Goldman Sachs.
Jerry Revich -- Goldman Sachs -- Analyst
I'm wondering if you could talk about how much of the annual raw material cost inflation that we see play out in the second quarter because of the standard cost accounting, can you just give us a rough sense of what proportion of the full-year inflation we recognized in Q2 versus what's expected in the back half? And can you just flesh out the drivers of the better incremental margins in back half? I'm assuming the standard cost accounting is a big driver but maybe you can expand on that a bit more for the ag and turf business.
Josh Jepsen -- Director of Investor Relations
Thanks, Jerry. I think when you think about ag and turf, in the second quarter, it was more of an impact of freight. So, as we were trying to make sure we were getting products out to our dealers and customers, we had higher levels of premium freight, expedited freight as we're working through some of those supply issues. When you pivot to the back half of the year, you definitely start to see the material come through more so. So, it's a combination. I'd say second quarter was more freight. The back half of the year you see more on the material side.
As you think about the margins for that business, the second half of the year for ag and turf does have more large ag than we typically would have in a usual year or a typical year. As a result of that, you see better margins and you also see improved pricing as a result of more large ag in the second half. So, that is favorable.
Jerry Revich -- Goldman Sachs -- Analyst
And Josh, sorry, just a clarification on the premium rate in 2Q, why are we assuming there is no premium freight in the back half? Have you already seen premium freight down significantly since quarter-end? Can you just flesh that out please?
Josh Jepsen -- Director of Investor Relations
We do expect to see elevated freight, and it's really as a result of demand and rates moving up. So, we have that in there as well. I'd say in the back half, you got more weighted to material than freight, though. Thanks. We'll move on to the next question.
Operator
Next question comes from Mig Dobre with Baird. Your line is open.
Mig Dobre -- Baird -- Analyst
Yes, good morning. I wanted to talk a little bit about Wirtgen if we can. A couple of things -- I'm trying to understanding within SG&A, exactly, what is this reduction in cost from acquisition-related activities? And how does this overlay to your increased profitability guidance for Wirtgen?
Josh Jepsen -- Director of Investor Relations
Yes. So, when you think about SA&G, really, as we're incorporating it into our business, you have a little bit of movement among those where those costs are classified. So, largely that's really adjusting and making changes to their forecast as we incorporate them into our process. As you think about the improvement from zero operating profit to about a 100, it's about two-thirds really the purchase accounting changes and adjustment and about a third related to operational performance. So, there is some improvement in the underlying business, but the majority is adjustment to purchase accounting. Next question?
Operator
Next question comes from Adam Uhlman with Cleveland Research.
Adam Uhlman -- Cleveland Research -- Partner
Good morning. I was wondering if we could circle back to the pricing commentary for ag and turf. It sounds like large tractors are -- lead time is already out to October. So, you'd to be putting in some price increases here pretty soon. Could you maybe talk through the magnitude of the increases that you're considering at this point? And maybe just flesh out like how much incremental productivity, material cost savings that you think that you would also have to offset higher steel costs next year?
Josh Jepsen -- Director of Investor Relations
Yes. So, on the pricing side, as we think about model year 2019, we'll start early order programs here in a few weeks for seasonal products. So, planters, sprayers, those types of things will come out. As we think about pricing, it's pretty early to talk about in general. In total, we think that's going to be varied product to product. Given where we're at in the year, we do, as Raj mentioned, expect the pricing that we are going to take for 2019 to be more than offsetting the inflationary pressures we're seeing in 2018 and 2019.
Adam Uhlman -- Cleveland Research -- Partner
Do you think you need more than the 2% that you're guiding to for the second half of 2018?
Josh Jepsen -- Director of Investor Relations
I think it's fair to assume that. What we've done the last few years, we're going to be higher than that as a result of that.
Operator
Next question comes from Joe O'Dea with Vertical Research.
Joe O'Dea -- Vertical Research -- Analyst
Good morning. Raj, you commented on dividend under consideration and increases there. With respect to just how the strong cash balance is now and the strength, what do you need to gain a little bit more comfort on stepping up on the repurchase front?
Raj Kalathur -- Chief Financial Officer
So, our cash use priorities have not changed, they're the same. One of the things we said earlier is we are taking advantage of 35% tax rate, which will not last after fiscal 2017 tax filing. So, that's the pension and OPEB. And otherwise, it's mid-single A growth investments with organic and inorganic dividends, and finally share repurchases. That's the priority order that we have articulated and what we work toward.
On the dividends, like you said, we are looking at 25% to 35% of mid-cycle earnings. We have seen, given this strong performance we've seen in the recent downturn and considering the growth we anticipate in the future, that's under consideration. Increasing dividends is under consideration.
Share repurchases, which is your question, is residual use of cash and you'll notice that we did start buying back shares. And generally, we think about longer term minded investors and the value it brings to long-term minded investors. So, you will see us buy back more shares when there is a larger GAAP between the intrinsic value of a short-term minded investor versus a longer term minded investor. So, we have, of course as you mentioned, ample firepower in terms of the cash generation that we're going to have this year and going forward do all of our cash justice.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
Next question comes from Rob Wertheimer with Melius Research. Your line is open.
Rob Wertheimer -- Melius Research -- Founding Partner
Just a quick question on Wirtgen -- it seems you took up sales outlook for construction, not for Wirtgen. Is there any reason that those products shouldn't follow the heavy construction industry? Is there any destock you're doing or anything else you're doing in that and what explains it otherwise?
Max Guinn -- President, Construction & Forestry Division
There is nothing to be read into that, I don't believe. We think the initial forecast we provided is solid. It does reflect considerable growth in Wirtgen's business and they're executing quite well.
Josh Jepsen -- Director of Investor Relations
The only thing I would add there, Rob too is when we look at the backlog, backlog is up double digits strong. And again, that's off of what was a very strong 2017 as well.
Rob Wertheimer -- Melius Research -- Founding Partner
Perfect answer. Thank you.
Operator
Next question comes from Ross Gilardi with Bank of America Merrill Lynch.
Ross Gilardi -- Bank of America Merrill Lynch -- Analyst
I first wanted to ask about the pension contribution of $1.1 billion. Given that you did that partly to take advantage of the higher tax rate, should we assume $1 billion bump to cash flow from ops next year? So, I would imagine the contribution wouldn't be as large. And then can you just talk a little bit about the persistent weakness we've seen in the AEM data for tractors of 100 horsepower and above? I know you guys classify high horsepower tractors as 200 and above. So, I'm wondering that weakness we keep seeing in the data is really more in the midsize segment, which is less of a driver for you. Thanks.
Raj Kalathur -- Chief Financial Officer
Yes. I will take the first one. In terms of the $1 billion in pension OPEB, yes, it's clearly opportunistic and taking advantage of that 35% tax rate. We have said our pension plans are well-funded. We do not have any mandatory contribution requirements. You can think of this is pulling forward some of our pension contributions into this year and take advantage of 35%.
So, from that perspective, you should not see this continue into next year and so on, unless we see another opportunity to take advantage of giving you some high returns. Otherwise, it's going to be working capital requirements and sales growth. Those are the types of things that will impact the cash flow, as you know.
Ryan Campbell -- Vice President and Comptroller
This is Ryan. Maybe just to add to that on the $1 billion, the impact to operating cash flow this year is net of tax, and so that's $650 million. So, it's a $1 billion minus 35% rate that will get the deduction on that.
Josh Jepsen -- Director of Investor Relations
Yeah, related to AEM, you're right. 100 plus is a very large category. So, you are talking utility tractors, midsize tractors and then large row-crop tractors. So, the mix there is wide when you think about what portion is high horsepower. I'd say, month-to-month this can be lumpy. We've certainly seen weather and timing be adjusted.
As we look at this, particularly the rest of the year, we are confident in our ability to execute and believe we are going to see retails -- as we look at our retail order book is very full, really strong position. As Brent mentioned earlier, our large tractor retail order books are out into the October timeframe. So, we feel really good about the order book and the expectation that we are going to see retail maybe slightly shifted in terms of seasonality versus normal but that will continue to come through.
Operator
Next question comes from Ann Duignan with JPMC. Your line is open.
Ann Duignan -- J.P. Morgan -- Managing Director
Can you guys talk a little bit about how you balance new equipment sales versus the risk of getting back into a used equipment slot? And in particular, can you address it in light of the fact that you are pressing your dealers to take back more of the off leased equipment under their balance sheet? How do you balance -- great to have new equipment sales, great to have replacement demand -- but how do we evolve getting back into the used equipment lot again?
Josh Jepsen -- Director of Investor Relations
Ann, I think when we think about used, there we've been focused on this for a number of years, if you think about throughout the downturn. We're down -- used equipment is down about 36% from the peak. That's pretty much where we were a quarter ago. So, we have made great, great strides. And you look across the product categories and we feel like we are in good shape. And we're at used equipment levels we haven't seen since 2012 or before. So, there is a lot of great work done by our dealers and our sales teams to manage that inventory.
Row-crop tractors, we'd say we've still got a little bit of work to do, but in better shape than we've been in the past. I think, as we balance that, it's continuing to make sure we're managing that used inventory levels that we are not seeing that grow and rise. And as you think about lease returns, lease returns -- if you think about the whole universe of used inventory, only equate to about 5% of the total. So, it's not a huge amount.
We are certainly focused on it and want to work it. And we are working with our dealers to make sure they're engaged in managing those returns. So, that focus hasn't changed, working proactively with our dealers and customers as we know leases are maturing to work through those. But, I think we feel good about where we're at. And definitely, as used inventories come down, we are seeing use prices strengthen, stabilize and start to strengthen, which helps there as well.
Operator
Next question comes from Andy Casey with Wells Fargo Securities. Your line is now open.
Andrew Casey -- Wells Fargo Securities -- Senior Analyst
Couple of questions on Wirtgen -- you now expect about $100 million operating profit for the year, pretty much unchanged revenue and the second half implied is about 6% margin. First, what drove the increased operating profit outlook from prior expectations for I think about neutral contribution?
And second, can you help us understand how to bridge the 6% second half implied margin outlook for the longer term 13 to 14. And I guess, the core of that question is, should we expect the purchase accounting adjustments outside of the ongoing amortization to be complete by the end of this fiscal year?
Josh Jepsen -- Director of Investor Relations
So, on the operating margin from zero to about a 100, two-thirds of that is really purchase accounting adjustments, as we continue to work through that on the integration side. The other third is really operational improvement. As you think about the full-year, now we're talking about 3% to 4% operating margin for the full-year. You would expect to see improvements from what we've done now, kind of building in terms of operating profit throughout the rest of the year to go from where we started, obviously negative in the first quarter to be at about 100 at the end of the year.
Ryan Campbell -- Vice President and Comptroller
This is Ryan. Your question is ongoing. The biggest component of purchase accounting this year as the inventory step-up, and that will come through the P&L over the -- it's come through the P&L to date and it will come through over the balance of this year. Next year should be clean with that and you're just looking at the amortization of the intangibles. That bridges here from the plus or minus 4% or 5% margins this year, up to that 13% to 14% range.
Andrew Casey -- Wells Fargo Securities -- Senior Analyst
Okay. Thank you very much.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
Next question comes from Mike Shlisky with Seaport Global.
Michael Shlisky -- Seaport Global Securities -- Managing Director
Good morning, guys. I wanted to ask about the turf business if I could. I'm seeing some of the companies on the wholesale, even some of the retail outlets have kind of slow start to the spring season due to the weather in March and April. Do you have any comments on what you experienced in Q2 here in turf business? Has that kind of reversed here very recently? I also want to ask, last quarter, last couple of quarters, you actually did mention that Deere expects to gain share in turf. But this quarter that language was not in your comments. So, I'm wondering if you could tell us what has changed there. Thank you.
Josh Jepsen -- Director of Investor Relations
I think, when you think about turf, the weather, the late spring that we had has impacted that in the quarter. I think, we've seen a turn in the weather. So, there is still I think belief that you can catch that up, given the turn in the weather and improvements we are seeing. So, I think there is still confidence that that can be achieved. I think, the commentary in terms of Deere outperforming, no, no change in terms of our expectations on that. So, I wouldn't read into that.
Operator
Next question comes from Steven Fisher with UBS. Your line is now open.
Steven Fisher -- UBS -- Analyst
In terms of the ag revenue guidance, the implied revenue growth is about 9% in the second half of the year with a little bit of help from currency. So, how did you approach that guidance since the 9% will be a slowdown from a first half? Is that conservative or are there some weaker pieces you have to assume in there? It sounds like your overall commentary on ag is actually fairly positive.
Josh Jepsen -- Director of Investor Relations
Yeah, Steve. I think, as we look at the year, -- we took up the full year when you look at organic for the division, it would have been up 12 a quarter ago, now up 13. So, I wouldn't say, there is an embedded conservatism or weakness there. Demand is very strong and we're seeing that in our order books. So, as we look at the full year, we feel good about the demand. Customer demand, whether it's in North America, South America or Europe, we're seeing that demand and feel good about the year.
Steven Fisher -- UBS -- Analyst
And so, is the slowdown, is that just comps or...?
Josh Jepsen -- Director of Investor Relations
Yes. I think, it's really just seasonal.
Steven Fisher -- UBS -- Analyst
Okay. I'll follow up. Thanks a lot.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question?
Operator
Next question comes from Joel Tiss with BMO. Your line is open.
Joel Tiss -- BMO Capital Markets -- Managing Director
Hi. How is it going? I wonder if you can talk a little bit about the warranty issue in the C&F business. You just mentioned it and I just wanted to see what it was all about.
Max Guinn -- President, Construction & Forestry Division
I don't think we did mention anything on warranty, Joel.
Josh Jepsen -- Director of Investor Relations
What were you referring to, Joel?
Joel Tiss -- BMO Capital Markets -- Managing Director
Just in the slides that was the warranties were a little bit of negative factor in the profitability. I can follow-up later.
Josh Jepsen -- Director of Investor Relations
Yes. Let's follow-up offline. I'm not sure that we're tracking.
Joel Tiss -- BMO Capital Markets -- Managing Director
And then on your slide on the global stocks to use, the corn stocks to use is dropping quite a bit as we go out toward the end of the year and I just wondered what's underneath that? Are you taking out some of the Chinese corn that's been decaying?
Josh Jepsen -- Director of Investor Relations
Yeah, so, just quick, that warranty is actually favorable. So, quarter-over-quarter, Q2 2018 versus Q2 2017 for C&F, warranty is a favorable item, not negative. Stocks to use, that is really a story of what's going on with the demand and slightly lower production for the year. So, there is no exclusion there in terms of stocks, just the tightness we're seeing there as demand is strong and you're projecting a little bit of lower production for the year.
Joel Tiss -- BMO Capital Markets -- Managing Director
Alright. Thank you.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question?
Operator
The next question comes from Emily McLaughlin with RBC. Your line is open.
Emily McLaughlin -- RBC Capital Markets -- Analyst
Hey, guys. Just a couple of questions -- so, your March and April retail sales versus the industry for the US and Canada were a little bit soft. I'm just wondering do you have any color on that? And then secondly, we are little surprised you didn't raise your South America forecast just given the strong order books you mentioned and now maybe a little more favorable in the back half.
Josh Jepsen -- Director of Investor Relations
So, on the retail sales, as we mentioned, the month-to-month, there could be movement there. Our view is we've -- we feel very confident in our order book and the position of those retail orders. So, feel good about the full year and then what we'd expect to see second half of the year in terms of retail.
As you think about South America, basically, we had a little bit of a shift. A quarter ago, we said strength in Argentina and flat to up a little bit in Brazil. We're seeing that shift now with the drought in Argentina, so a little bit of weakness there, but improved sentiment in Brazil. So, those were kind of the puts and takes.
But to your point, we do feel good about the Brazil demand. The farmer economics are strong from a margin perspective, confidence, FX -- the real has weakened, which helps the margin side of the business for those farmers. And then, as it relates to [inaudible] , we still haven't had the announcement of what we expect for that program for the second half of this year and the first half of next year, the program that will take effect on July 1st. Expectations are that you will see more attractive rates and as a result, you're seeing customers wanting their deliveries in July and August. But that remains to be seen.
Emily McLaughlin -- RBC Capital Markets -- Analyst
Got it. Thank you.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
Next question comes from Courtney Yakavonis with Morgan Stanley. Your line is open.
Courtney Yakavonis -- Morgan Stanley -- Analyst
Just another quick question on Wirtgen -- I think you had guided to this quarter adding about 16% to equipment ops and it came in only at 12%, and I know you've kept the guidance for the year. So, I just want to understand is that related to the supply chain issues? Was there some other timing discrepancy and how we should think about modeling seasonality-wise in next year into 2019?
Josh Jepsen
So, full-year, maintaining -- I think what we have here is a little bit of timing. And keep in mind there that they own a lot of their distribution. We are trying to forecast, not just sales to dealers but also from a retail perspective. So, I think as we work through that seasonality, it's taking a little bit of time but no concern on the full year.
Max Guinn -- President, Construction & Forestry Division
It just reflects the maturing process. Wirtgen's processes for forecasting were quite a bit of different than ours. There are a lot of entities involved. And they had not traditionally done a monthly forecast. So, it's a transition issue. It's not an issue at all for the full year.
Courtney Yakavonis -- Morgan Stanley -- Analyst
So, is it safe to say that the majority of that was related to their distribution in Europe as well as to the US?
Max Guinn -- President, Construction & Forestry Division
It's just kind of the forecasting process.
Josh Jepsen -- Director of Investor Relations
Yeah, no specific geography.
Max Guinn -- President, Construction & Forestry Division
No geography.
Courtney Yakavonis -- Morgan Stanley -- Analyst
Okay. Thank you.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
Next question comes from Stanley Elliott with Stifel. Your line is open.
Stanley Elliott -- Stifel Nicolaus -- Analyst
You mentioned the C&F order book sitting out to 2019. Could you give more commentary -- is that kind of normal expectations? Is that a shift with more production class equipment that you have been focusing on or Wirtgen, or what's really driving that order book out there?
Max Guinn -- President, Construction & Forestry Division
It's definitely a shift toward the upper end. I would say that both dealers and customers are hungry for equipment. We see some of our largest customers accelerating their purchasing plans for 2019 to make sure that they are prepared to be able to execute work that they have on their books. So, demand is really, really strong, and it's very strong on the big end, if that answers your question.
Stanley Elliott -- Stifel Nicolaus -- Analyst
It does, thank you. You mentioned a couple of things on the distribution side in West Virginia and Mexico. Is there anything you could share in terms of how the synergies are coming together either in Europe, Asia or anything along those lines between the Wirtgen and Deere businesses?
Max Guinn -- President, Construction & Forestry Division
It's going to take some time, but I can tell you that we are answering questions on a daily basis from Wirtgen customers and geographies where we are not present in C&F about when we are going to be there. We're excited about those opportunities, but we are also realistic. It's not just a matter of taking orders and shipping equipment, but it's making sure that we have the support mechanisms in place and can really take care of those customers the way we know they expect to be taken care of. So, there's lots of opportunity in front of us. It's going to take a little bit of time.
Stanley Elliott -- Stifel Nicolaus -- Analyst
Thanks. Appreciate it.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
Next question comes from Jerry Revich with Goldman Sachs. Your line is open.
Jerry Revich -- Goldman Sachs -- Analyst
Thanks for taking the follow-up. Raj, I'm wondering if you could talk about the cadence of ag and turf pricing you're expecting over the next couple of years based on the product pipeline. In the past five years, I think, on average 2.5% annual price increase due to feature upgrades. I'm wondering if we should be thinking about the next couple years based on the product lineup any differently at all. Obviously, this year was different from that trend line. So, any comments there would be helpful.
Raj Kalathur -- Chief Financial Officer
Jerry, in terms of the pricing, of course you will appreciate we'll not be able to tell you exactly how much or exactly when, but I think the points that we provided are as we come within model year '19, we mentioned that around June 1st, we'll be taking some of the orders for model year '19 and almost August 1st, we start producing for model year '19. Those are the times you'll be thinking about price increases, not only for some of the value addition we'll bring in these products, but also looking at the inflationary aspects.
We do have a healthy model year '19 from that regard. Its' going to be like '18. If you see our R&D investments and the innovation we're adding, you should expect that to even get better. Our opportunity to get pricing is still going to be pretty positive given the importance we place in development and research and especially on the innovative ideas coming out in the precision ag sector.
Josh Jepsen -- Director of Investor Relations
I think I'd add there. It's important, as you think about precision ag, investments that we've made, we didn't pull R&D down significantly during the downturn. So, those are the products that will be coming. And when you think about investments we're making now, things like incorporating Blue River and those technologies, machine learning, automation into our product portfolio, that will be coming out in the future as well.
Jerry Revich -- Goldman Sachs -- Analyst
I appreciate it. Thank you.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
The next question comes from Larry De Maria with William Blair. Your line is open.
Josh Jepsen -- Director of Investor Relations
Larry, you there?
Larry De Maria -- William Blair -- Analyst
Sorry about that, yeah, I'm here. Your principal competitor noted they might be more aggressive on price given where their margins are. I'm just curious what you're seeing and if you're willing to give up some share on price as it's playing out into 2019 where you're starting to take some orders. Secondly, bigger picture Europe, I'm just curious where you think we are in the cycle. We're seeing some of our mixed sentiment indicators over there. I'm curious if you think this is a peak level or if you think this is kind of normal Europe which kind of bounces around at certain levels. Thank you.
Josh Jepsen -- Director of Investor Relations
Yes. Maybe starting on Europe, as we look at historically where we've been, we say we're still below replacement demand levels. So, it's a market that doesn't see as wide a fluctuation. So, we haven't seen high highs or low lows. But we would say when we look at the industry, particularly for combines but also for tractors, we're still below where we consider kind of normal replacement demand.
Raj Kalathur -- Chief Financial Officer
And on the pricing in general, we think more longer-term the expected pricing, that's why we think about the value add and ability there, gain more pricing or earn more pricing from our customers. We don't think about pricing in a short-term mentality. This also gives us loyalty with customers longer term. So, philosophically that's how we think about pricing.
Larry De Maria -- William Blair -- Analyst
So, the order book stretching to next year has new pricing or price increases in it? I just want to be clear on that.
Max Guinn -- President, Construction & Forestry Division
I think your question was about C&F pricing. Is that right?
Larry De Maria -- William Blair -- Analyst
Yes, that's correct.
Max Guinn -- President, Construction & Forestry Division
Okay. We didn't hear that at the beginning. I guess I'll start off by saying this will be the first year in several years when we have not generated a net cost reduction internally based on some really strong focus on cost reduction. So, we're going to take the pricing actions we feel are appropriate in the second half to be able to keep our margins improving, as I said earlier. We don't have any reason to give up share due to price, I don't believe. I think, we can earn a good share and manage our pricing well.
Larry De Maria -- William Blair -- Analyst
Perfect. Thank you very much.
Josh Jepsen -- Director of Investor Relations
The thing to point out there too on the C&F side when you look at that business, ex-Wirtgen, we're running about 30% incremental margin for the year. So, we feel good about that.
Larry De Maria -- William Blair -- Analyst
Thanks.
Josh Jepsen -- Director of Investor Relations
Next question.
Operator
Next question comes from David Raso with Evercore ISI.
David Raso -- Evercore ISI -- Managing Director
Good morning. Hey, Max, for your C&F growth, pull out Wirtgen, do you expect after the second quarter where ex-Wirtgen sales were up low 20%, the third quarter to be similar kind of growth? Just so I understand the cadence for the core business or do you think it slows on comps? Can you give a sense? And then, I have a follow-up.
Max Guinn -- President, Construction & Forestry Division
It's similar, David. No, we don't see any slowdown there.
David Raso -- Evercore ISI -- Managing Director
That's what I thought. So, I'm just trying to figure -- we have the rough idea of C&F organic, we have Wirtgen for the third quarter, then it hit the full company sales guidance for the third quarter. That means A&T sales growth for the third quarter has to be about -- call it 15%, right? That's how you get to the full company 35% sales guidance for the third quarter.
But, if you do that, that implies the fourth quarter A&T is almost giving you zero growth to hit your full year sales guide for A&T of 14%. Just given all your color on the order book and so forth, I just want to make sure we understand -- are you trying to imply the fourth quarter A&T revenue growth is almost nil or is that just a call it conservatism in the sales guidance? That's the math.
Josh Jepsen -- Director of Investor Relations
I think your math is reasonable. When you think about the fourth quarter, the thing that would not be reflected there is we haven't started our EOP for the spring seasonal products yet. And those we do know, if you think about planters and sprayers, will come in, and you start to build those really in the fourth quarter as you're building those for the spring seasonal delivery. So, I think that's a piece that where we don't have visibility yet. Combines, we do, large tractors, we do, but those spring seasonal products, we don't have that visibility yet. And I think that's you see there.
David Raso -- Evercore ISI -- Managing Director
So, based on the order book right now on ag, just from the things you've said, field work we've done, clearly the order book is not suggesting fourth quarter should be flat. So, is it just sort of raise your hands and not trying to make a call on the fourth quarter, but you're not really try to leave us thinking the fourth quarter is flat on the A&T sale? Is that a fair summary?
Josh Jepsen -- Director of Investor Relations
I think that's fair. Like I said, when we get to the third quarter, we'll have more visibility into those early order programs. But again, I'd reiterate strong, what we see combines throughout the year, large tractors into October. So, that remains firm.
David Raso -- Evercore ISI -- Managing Director
Alright. I appreciate it. Thank you.
Josh Jepsen -- Director of Investor Relations
Okay. Well, thanks. We are at the top of the hour. So, we will go ahead and end the call. We'll be available for call backs the rest of the day. Thank you.
Operator
Thank you for your participation in today's conference. Please disconnect at this time.
Duration:61 minutes
Call participants:
Josh Jepsen -- Director of Investor Relations
Max Guinn -- President, Construction & Forestry Division
Ryan Campbell -- Vice President and Comptroller
Raj Kalathur -- Chief Financial Officer
Brent Norwood -- Manager, Investor Communications
Jamie Cook -- Credit Suisse -- Analyst
Jerry Revich -- Goldman Sachs -- Analyst
Mig Dobre -- Baird -- Analyst
Adam Uhlman -- Cleveland Research -- Partner
Joe O'Dea -- Vertical Research -- Analyst
Rob Wertheimer -- Melius Research -- Founding Partner
Ross Gilardi -- Bank of America Merrill Lynch -- Analyst
Ann Duignan -- J.P. Morgan -- Managing Director
Andrew Casey -- Wells Fargo Securities -- Senior Analyst
Michael Shlisky -- Seaport Global Securities -- Managing Director
Steven Fisher -- UBS -- Analyst
Joel Tiss -- BMO Capital Markets -- Managing Director
Emily McLaughlin -- RBC Capital Markets -- Analyst
Courtney Yakavonis -- Morgan Stanley -- Analyst
Stanley Elliott -- Stifel Nicolaus -- Analyst
Larry De Maria -- William Blair -- Analyst
David Raso -- Evercore ISI -- Managing Director
More DE analysis
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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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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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!
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to John Deere & Company second quarter earnings conference call. Also on the call today are Raj Kalthur, our Chief Financial Officer, Max Guinn, President of the Construction and Forestry Division, Ryan Campbell, Vice President and Comp Controller, and Brent Norwood, Manager, Investor Communications. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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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!
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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!
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2018-05-18 00:00:00 UTC
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Mid-Afternoon Market Update: Applied Materials Falls On Weak Sales Forecast; Quotient Shares Spike Higher
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https://www.nasdaq.com/articles/mid-afternoon-market-update-applied-materials-falls-weak-sales-forecast-quotient-shares
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Toward the end of trading Friday, the Dow traded up 0.07 percent to 24,731.00 while the NASDAQ declined 0.27 percent to 7,362.62. The S&P also fell, dropping 0.19 percent to 2,715.03.
Leading and Lagging Sectors
Friday afternoon, the industrial shares rose 0.64 percent. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 7 percent, and FreightCar America, Inc. (NASDAQ: RAIL ) up 6 percent.
In trading on Friday, utilities shares fell 0.76 percent.
Top Headline
Deere & Company (NYSE: DE ) reported weaker-than-expected results for its second quarter.
Deere said it earned $3.14 per share in the first quarter on net sales from equipment operations of $9.747 billion versus Wall Street's estimate of $3.29 per share on revenue of $9.83 billion.
Deere projects Q3 equipment sales to rise 35 percent and FY18 equipment sales to increase 30 percent.
Equities Trading UP
Mannatech, Incorporated (NASDAQ: MTEX ) shares shot up 24 percent to $19.65 after the company reported commencement of modified Dutch auction cash tender for up to $16 million of common stock.
Shares of Quotient Limited (NASDAQ: QTNT ) got a boost, shooting up 21 percent to $5.66 following commencement of EU blood grouping field trial.
Shineco, Inc. (NASDAQ: TYHT ) shares were also up, gaining 16 percent to $1.9752 following Q3 results. Shineco posted Q3 earnings of $0.21 per share on sales of $13.3 million.
Equities Trading DOWN
Agile Therapeutics, Inc. (NASDAQ: AGRX ) shares dropped 73 percent to $0.679 after the FDA announced significant concerns regarding the adhesion of Twirla.
Shares of Campbell Soup Company (NYSE: CPB ) were down 12 percent to $34.565. Campbell Soup reported upbeat Q3 earnings, but sales missed estimates. The company lowered its FY18 outlook and disclosed that its CEO abruptly stepped down.
Applied Materials, Inc. (NASDAQ: AMAT ) was down, falling around 9 percent to $48.97. Applied Materials reported stronger-than-expected results for its second quarter, but issued weak sales outlook for the third quarter.
Commodities
In commodity news, oil traded down 0.14 percent to a$71.39 while gold traded up 0.18 percent to $ 1,291.70.
Silver traded down 0.13 percent Friday to $16.46, while copper fell 0.76 to $3.0655.
Eurozone
European shares closed lower today. The eurozone's STOXX 600 declined 0.28 percent, the Spanish Ibex Index fell 1.02 percent, while Italy's FTSE MIB Index dropped 1.48 percent. Meanwhile the German DAX fell 0.28 percent, and the French CAC 40 fell 0.13 percent while U.K. shares fell 0.12 percent.
Economics
The total number of active U.S. oil rigs was unchanged at 844 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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Equities Trading UP Mannatech, Incorporated (NASDAQ: MTEX ) shares shot up 24 percent to $19.65 after the company reported commencement of modified Dutch auction cash tender for up to $16 million of common stock. Toward the end of trading Friday, the Dow traded up 0.07 percent to 24,731.00 while the NASDAQ declined 0.27 percent to 7,362.62. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 7 percent, and FreightCar America, Inc. (NASDAQ: RAIL ) up 6 percent.
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Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 7 percent, and FreightCar America, Inc. (NASDAQ: RAIL ) up 6 percent. Top Headline Deere & Company (NYSE: DE ) reported weaker-than-expected results for its second quarter. Toward the end of trading Friday, the Dow traded up 0.07 percent to 24,731.00 while the NASDAQ declined 0.27 percent to 7,362.62.
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Toward the end of trading Friday, the Dow traded up 0.07 percent to 24,731.00 while the NASDAQ declined 0.27 percent to 7,362.62. The eurozone's STOXX 600 declined 0.28 percent, the Spanish Ibex Index fell 1.02 percent, while Italy's FTSE MIB Index dropped 1.48 percent. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 7 percent, and FreightCar America, Inc. (NASDAQ: RAIL ) up 6 percent.
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Toward the end of trading Friday, the Dow traded up 0.07 percent to 24,731.00 while the NASDAQ declined 0.27 percent to 7,362.62. Meanwhile, top gainers in the sector included Deere & Company (NYSE: DE ), up 7 percent, and FreightCar America, Inc. (NASDAQ: RAIL ) up 6 percent. Top Headline Deere & Company (NYSE: DE ) reported weaker-than-expected results for its second quarter.
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2018-05-15 00:00:00 UTC
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What's In Store for Deere's (DE) Quarterly Earnings This Week?
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Deere & Company DE saw its stock price dip on Tuesday as the company inches closer to the release of its quarterly financial results on Friday. This could be a sign that investors are nervous about the agricultural and construction equipment powerhouse. Let's take a look to see what they should really expect.
Deere stock is up nearly 29% over the last year, but its stock price has sunk 13.4% during the last 12 weeks. This fall has seen Deere's valuation become more attractive. Deere is currently trading at 13.9X forward 12-months earnings estimates, which marks a substantial discount to its 18.8X median and the 19.6X that it was trading at in early March.
However, the company is coming off a GAAP net loss in its first fiscal quarter of 2018. With that said, Deere could quickly start to reverse its recent decline if it reports strong top and bottom line results
Deere Q2 Outlook
Our current Zacks Consensus Estimate is calling for Deere's quarterly revenues to surge 34.3% to reach $9.75 billion. Turning to earnings, the equipment giant is projected to report adjusted earnings of $3.33 per share. This would also mark a nearly 34% climb from the year-ago period.
These are both positive signs for investors, but they will still want to understand if Deere is likely to beat or fall short of quarterly earnings estimates. The reason being is that a bottom line beat can often positively impact a company's stock price in the near-term and propel shares going forward. Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to surprise, either way.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
In contrast, a stock with a Zacks Rank #3 (Hold) or worse, coupled with a negative Earnings ESP, is one that we typically want to avoid during earnings season.
Deere's Most Accurate Estimate-the representation of the most recent analyst sentiment-calls for earning of $3.27 per share, which comes in 6 cents below our current consensus estimate. The company is also currently a Zacks Rank #3 (Hold) and sports an Earnings ESP of -1.77%.
Therefore, investors can consider Deere a stock that could fall short of quarterly earnings estimates when it reports its Q2 financial results before the market opens on Friday.
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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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Deere's Most Accurate Estimate-the representation of the most recent analyst sentiment-calls for earning of $3.27 per share, which comes in 6 cents below our current consensus estimate. Therefore, investors can consider Deere a stock that could fall short of quarterly earnings estimates when it reports its Q2 financial results before the market opens on Friday. Deere & Company DE saw its stock price dip on Tuesday as the company inches closer to the release of its quarterly financial results on Friday.
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With that said, Deere could quickly start to reverse its recent decline if it reports strong top and bottom line results Deere Q2 Outlook Our current Zacks Consensus Estimate is calling for Deere's quarterly revenues to surge 34.3% to reach $9.75 billion. Therefore, investors can consider Deere a stock that could fall short of quarterly earnings estimates when it reports its Q2 financial results before the market opens on Friday. 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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With that said, Deere could quickly start to reverse its recent decline if it reports strong top and bottom line results Deere Q2 Outlook Our current Zacks Consensus Estimate is calling for Deere's quarterly revenues to surge 34.3% to reach $9.75 billion. Therefore, investors can consider Deere a stock that could fall short of quarterly earnings estimates when it reports its Q2 financial results before the market opens on Friday. Deere & Company DE saw its stock price dip on Tuesday as the company inches closer to the release of its quarterly financial results on Friday.
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Deere & Company DE saw its stock price dip on Tuesday as the company inches closer to the release of its quarterly financial results on Friday. These are both positive signs for investors, but they will still want to understand if Deere is likely to beat or fall short of quarterly earnings estimates. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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2018-05-15 00:00:00 UTC
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Will Strong Order Activity Drive Deere's (DE) Q2 Earnings?
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Deere & CompanyDE is scheduled to report second-quarter fiscal 2018 results on May 18, before the market opens.
In the last reported quarter, Deere posted earnings of $1.31 per share, beating the Zacks Consensus Estimate by around 13%. Moreover, the company's earnings surpassed estimates in each of the trailing four quarters, recording an average positive earnings surprise of 17.25%.
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 second quarter, Deere expects sales to be up 30-40% year over year. The forecast includes a positive foreign-currency translation impact of about 4%. The Zacks Consensus Estimate for the to-be-reported quarter's sales is pegged at $9.75 billion, reflecting year-over-year growth of 34%. This upbeat projection reflects Deere's strong order activity.
In addition, Deere stated that the Wirtgen acquisition will contribute about 16% to net sales for the quarter to be reported. Moreover, higher demand for large equipment and the positivity in agriculture-related government-sponsored finance programs supports the sales outlook for the fiscal second quarter.
Our Consensus Estimates indicate that net sales of Deere's Agriculture and Turf equipment segment will reach $6.73 billion in the fiscal second quarter, rising around 16% year over year. The Zacks Consensus Estimate for Construction & Forestry equipment sales is pegged at $2.58 billion for the quarter, reflecting year-over-year jump of 76%. The estimate for the Financial Services segment's sales is $806 million, reflecting year-over-year increase of 13%.
Notably, the Zacks Consensus Estimate for earnings per share is pegged at $3.33 for the fiscal second quarter, indicating remarkable year-over-year growth of 34%. Improved operational performance resulting from disciplined cost management, and continued investment in innovative technology and solutions will drive the company's performance.
However, China's response in retaliation to Trump's tariff plans by proposing duties on key U.S. imports, including soybeans, planes, cars, beef and chemicals remains a concern for Deere. The tit-for-tat retaliatory policies are feared to hit U.S. farm exports and in turn, escalate the troubles of farm-equipment makers like Deere. Further, elevated expenses will impact its results.
Share Price Performance
The company's price performance has been impressive over the past year. Its shares have rallied 28% in a year's time, outperforming the industry 's gain of 24%.
Currently, Deere carries a Zacks Rank #3 (Hold).
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.
Analog Devices, Inc. ADI , with an Earnings ESP of +0.56% and a Zacks Rank #3. Its shares have gained 16% in a year's time. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
American Eagle Outfitters, Inc. AEO , with an Earnings ESP of +0.14% and a Zacks Rank #3. The company's shares have appreciated 62% during the past year.
Applied Materials, Inc. AMAT , with an Earnings ESP of +0.56% and a Zacks Rank #3. The company's shares have been up 23% over the past year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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
American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report
Analog Devices, Inc. (ADI): 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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Moreover, higher demand for large equipment and the positivity in agriculture-related government-sponsored finance programs supports the sales outlook for the fiscal second quarter. However, China's response in retaliation to Trump's tariff plans by proposing duties on key U.S. imports, including soybeans, planes, cars, beef and chemicals remains a concern for Deere. The tit-for-tat retaliatory policies are feared to hit U.S. farm exports and in turn, escalate the troubles of farm-equipment makers like Deere.
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In the last reported quarter, Deere posted earnings of $1.31 per share, beating the Zacks Consensus Estimate by around 13%. Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Key Factors to Consider For the fiscal second quarter, Deere expects sales to be up 30-40% year over year. Click to get this free report Deere & Company (DE): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report Analog Devices, Inc. (ADI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): 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 $1.31 per share, beating the Zacks Consensus Estimate by around 13%. Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Key Factors to Consider For the fiscal second quarter, Deere expects sales to be up 30-40% year over year. Click to get this free report Deere & Company (DE): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report Analog Devices, Inc. (ADI): Free Stock Analysis Report Applied Materials, Inc. (AMAT): 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 $1.31 per share, beating the Zacks Consensus Estimate by around 13%. Our Consensus Estimates indicate that net sales of Deere's Agriculture and Turf equipment segment will reach $6.73 billion in the fiscal second quarter, rising around 16% year over year. Deere & CompanyDE is scheduled to report second-quarter fiscal 2018 results on May 18, before the market opens.
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da92b0b1-8d19-448b-9490-38380f65e0e3
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722028.0
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2018-05-12 00:00:00 UTC
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Deere & Co. reports earnings May 18
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DE
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https://www.nasdaq.com/articles/deere-co-reports-earnings-may-18-2018-05-12
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nan
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nan
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What's Happening
Heavy machinery maker Deere & Co. ( DE ) is scheduled to release its fiscal second-quarter numbers before the market open May 18. Analysts forecast the company will report earnings of $3.33 per share, up from $2.49 during the same period last year. DE has struggled so far in 2018, with the stock losing 6.7% year to date.
Technical Analysis
DE was recently trading at $147.41, down $27.85 from its 12-month high and $36.29 above its 12-month low. Technical indicators for DE are bearish with a possible trend reversal. The stock has recent support above $135.00 and recent resistance below $155.00. Of the 16 analysts who cover the stock, nine rate it a "strong buy", two rate it a "buy", and five rate it a "hold". DE gets a score of 70 from InvestorsObserver's Stock Score Report.
Analyst's Thoughts
Deere, like its main competitor Caterpillar ( CAT ) enjoyed strong gains in 2016 and 2017, but both stocks have cooled off in 2018. Caterpillar posted solid quarterly results in April, crushing estimates on both the top and bottom line, but the stock sank following the report as the company's CFO warned that the current quarter would be the high mark for the year. The company has since tried to walk back that comment, and the stock has regained the post-earnings losses, but it was enough to spook investors regarding DE as well, which traded down in sympathy to the CAT sell off. DE has also recovered those losses, but the company is going to have to show solid earnings or the bears will quickly come back in and drive shares lower. Traders expect a small earnings beat, with a whisper number of $3.40 versus the consensus $3.33, and will be paying close attention to any forward guidance that the company offers to see if Caterpillar's remarks resonate with what Deere's management sees for the rest of the year. DE trades at $146.89 with an average price target of $179.17.
Stock Only Trade
If you're looking to establish a long stock position in DE, consider buying the stock under $147.50. Sell if it falls below $132.75 or take profits if it gets to $170.00.
Bullish Trade
If you want a bullish hedged trade on the stock, consider a June 125/130 bull-put credit spread for a 40-cent credit. That's a potential 8.7% return (90.7% annualized*) and the stock would have to fall 11.5% to cause a problem.
Bearish Trade
If you want to take a bearish stance on the stock at this time, consider a June 165/170 bear-call credit spread for a $0.30 credit. That's a potential 6.4% return (66.6% annualized*) and the stock would have to rise 12.1% to cause a problem.
Covered Call Trade
If you like the stock, but wish to lower your cost basis on a new position, you may want to consider a June $150 covered call. Buy DE shares (typically 100 shares, scale as appropriate), while selling the June $150 call for a debit of $143.25 per share. The trade has a target assigned return of 4.7%, and a target annualized return of 50.9% (for comparison purposes only).
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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What's Happening Heavy machinery maker Deere & Co. ( DE ) is scheduled to release its fiscal second-quarter numbers before the market open May 18. The company has since tried to walk back that comment, and the stock has regained the post-earnings losses, but it was enough to spook investors regarding DE as well, which traded down in sympathy to the CAT sell off. DE has also recovered those losses, but the company is going to have to show solid earnings or the bears will quickly come back in and drive shares lower.
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What's Happening Heavy machinery maker Deere & Co. ( DE ) is scheduled to release its fiscal second-quarter numbers before the market open May 18. DE has struggled so far in 2018, with the stock losing 6.7% year to date. Technical Analysis DE was recently trading at $147.41, down $27.85 from its 12-month high and $36.29 above its 12-month low.
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The company has since tried to walk back that comment, and the stock has regained the post-earnings losses, but it was enough to spook investors regarding DE as well, which traded down in sympathy to the CAT sell off. Stock Only Trade If you're looking to establish a long stock position in DE, consider buying the stock under $147.50. Bullish Trade If you want a bullish hedged trade on the stock, consider a June 125/130 bull-put credit spread for a 40-cent credit.
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Buy DE shares (typically 100 shares, scale as appropriate), while selling the June $150 call for a debit of $143.25 per share. The trade has a target assigned return of 4.7%, and a target annualized return of 50.9% (for comparison purposes only). What's Happening Heavy machinery maker Deere & Co. ( DE ) is scheduled to release its fiscal second-quarter numbers before the market open May 18.
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8450eb9d-095d-4a8c-9d70-2408e0751a62
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722029.0
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2018-05-11 00:00:00 UTC
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Can Retail Stocks Maintain Their Momentum?
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DE
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https://www.nasdaq.com/articles/can-retail-stocks-maintain-their-momentum-2018-05-11
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nan
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nan
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The earnings focus shifts to the Retail sector this week as traditional brick-and-mortar retailers come out with quarterly results. Stocks of most of these traditional operators have done better than the broader markets this year, except for Wal-Mart ( WMT ) which reports before the market's open on Thursday and whose stock has been a notable laggard since the company's last earnings release back in mid-February. The company's recent big Indian purchase has failed to reverse the stock's underperformance, with the stock now down -14.8% in the year-to-date period.
In total, we have 125 companies on deck to come out with Q1 results, including 10 S&P 500 members. Macy's ( M ), Nordstrom ( JWN ), Wal-Mart ( WMT ) and Home Depot ( HD ) are major retailers reporting results this week, with Cisco ( CSCO ) and Deere & Company ( DE ) as the other notable reports.
Macy's, Nordstrom and other department store stocks have been strong performers this year, with Macy's up +18.7% and Nordstrom up +3.5% in the year-to-date period, doing better than the S&P 500's +2.5% gain. Driving this recent momentum is the market's optimism about these companies' restructuring and competitive repositioning, with Macy's actively bringing down its physical footprint and investing in its digital platform. We will see if either Macy's or Nordstrom can sustain these gains after they come out with results in the next few days.
The Zacks Retail sector is up +7% in the year-to-date period, doing better than the broader market. Helping the sector's recent outperformance is the aforementioned positive momentum in the stock prices of Macy's and other traditional retailers. But we should keep in mind that the Zacks Retail sector also includes online vendors like Amazon ( AMZN ) in addition to traditional brick-and-mortar operators.
You can clearly see this dynamic at play in the year-to-date chart below plotting Macy's (blue line) against the Zacks Retail sector (red line) and Amazon (green line).
The only difference between this chart and the earlier one is time - this chart represents a 5-year period while the earlier one represents the year-to-date period. As you can see, Macy's shares are down -25% over this longer time horizon.
There is another very interesting aspect to this chart as well. The blue (Macy's) and green (Amazon) lines moving in lock-step with each other in the earlier part of the chart - through July 17, 2015 to be precise. In other words, what seem such obvious existential secular headwinds facing Macy's and its peers at present are only so with the benefit of hindsight; the market had no idea what lay ahead for Macy's and its peers prior to that July day in 2015.
The takeaway from this discussion is that many trends that appear crystal clear in retrospect are anything but that in real time.
What's the significance of that date in July 2015? Amazon held its first Prime Day on July 15th to celebrate the 20th anniversary of its founding, which it claimed turned out to be bigger than Black Friday. As you can see in the chart above, the world has never been the same since that day, particularly for Macy's and its department store peers.
Retail Sector Scorecard
We now have Q1 results from 50% of the retailers in the S&P 500 index. Total earnings for these Retail sector companies that have reported results already are up +26.1% from the same period last year on +14.9% higher revenues, with 68.4% beating EPS estimates and 63.2% beating revenue estimates.
The comparison charts below put the sector's Q1 results in a historical context.
The Retail sector results thus far are from the online vendors and restaurant players, with 'traditional' operators starting to report only this week. The comparison charts above show that while growth (both earnings as well as revenues) is tracking notably above historical periods, the proportion of positive surprises is on the weak side.
With respect to growth, Amazon's blockbuster numbers, particularly on the revenues front, has a big role in the very strong growth picture at this stage. Amazon's Q1 earnings increased +125% on +42.9% higher revenues, with the net dollar increase in the online retailer's revenues an impressive $15.3 billion.
The comparison charts below try to look at the sector's growth picture with and without the Amazon contribution.
As you can see in the right-hand chart above, Q1 growth is still tracking above historical periods, but the growth rate is a lot lower on an ex-Amazon basis.
Q1 Earnings Season Scorecard (as of Friday, May 11th)
For the S&P 500 index as a whole, we now have Q1 results from 455 index members. Total earnings for the 455 index members that have reported results already are up +24.4% from the same period last year on +9.4% higher revenues, with 77.6% beating EPS estimates and 75.2% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 62.9%.
To put these results in a historical context, the charts below compare the results thus far with what we had seen from the same group of 455 index members in other recent periods.
Earnings and revenue growth rate and the proportion of positive EPS surprises is tracking above what we have been seeing from the same group of 455 index members. But revenue surprises are tracking modestly below the preceding earnings season, but remain above historical periods.
What's Happening to 2018 Q2 Estimates?
The chart below plots the evolution of earnings growth expectations for the current period. As you can see, there has been no incremental improvement in the earnings outlook relative to what was expected ahead of the start of this earnings season.
A big part of the positive revisions we saw ahead of the start of the Q1 earnings season reflected the direct impact of the tax law changes, which was obviously a one-off development. Had all positive revisions been a result of tax law changes, we would have seen only EPS estimates go up, with no changes to revenue estimates. But that wasn't the case, as revenue estimates had gone up as well, which raised our hopes that the aggregate revisions trend had finally turned positive after many years being in the other direction.
Disappointingly, we are not seeing that with estimates for Q2, as the above chart shows. In other words, the growth picture coming out of this earnings season is very impressive, but there is no improvement in expectations for the current and coming quarters. The recent uptrend in the exchange value of the U.S. dollar and questions about global growth will likely serve as incremental negatives for folks like us monitoring the aggregate revisions trend.
This flat aggregate revisions trend notwithstanding, June quarter estimates have actually modestly ticked down for 11 of the 16 Zacks sectors and gone up for 4 sectors. The sectors enjoying positive revisions in the aggregate include Technology, Industrial Products, Basic Materials and Retail.
Note: Sheraz Mian manages the Zacks equity research department. He is an acknowledged earnings expert whose commentaries and analyses appear on Zacks.com and in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview . He manages the Zacks Top 10 and Focus List portfolios and writes the Weekly Market Analysis article for Zacks Premium subscribers.
Here is a list of the 126 companies including 10 S&P 500 and reporting this week.
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
Walmart Inc. (WMT): Free Stock Analysis Report
Macy's, Inc. (M): Free Stock Analysis Report
Nordstrom, Inc. (JWN): Free Stock Analysis Report
The Home Depot, Inc. (HD): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): 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 big part of the positive revisions we saw ahead of the start of the Q1 earnings season reflected the direct impact of the tax law changes, which was obviously a one-off development. Stocks of most of these traditional operators have done better than the broader markets this year, except for Wal-Mart ( WMT ) which reports before the market's open on Thursday and whose stock has been a notable laggard since the company's last earnings release back in mid-February. The company's recent big Indian purchase has failed to reverse the stock's underperformance, with the stock now down -14.8% in the year-to-date period.
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Macy's ( M ), Nordstrom ( JWN ), Wal-Mart ( WMT ) and Home Depot ( HD ) are major retailers reporting results this week, with Cisco ( CSCO ) and Deere & Company ( DE ) as the other notable reports. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks of most of these traditional operators have done better than the broader markets this year, except for Wal-Mart ( WMT ) which reports before the market's open on Thursday and whose stock has been a notable laggard since the company's last earnings release back in mid-February.
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Total earnings for the 455 index members that have reported results already are up +24.4% from the same period last year on +9.4% higher revenues, with 77.6% beating EPS estimates and 75.2% beating revenue estimates. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks of most of these traditional operators have done better than the broader markets this year, except for Wal-Mart ( WMT ) which reports before the market's open on Thursday and whose stock has been a notable laggard since the company's last earnings release back in mid-February.
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Retail Sector Scorecard We now have Q1 results from 50% of the retailers in the S&P 500 index. Total earnings for the 455 index members that have reported results already are up +24.4% from the same period last year on +9.4% higher revenues, with 77.6% beating EPS estimates and 75.2% beating revenue estimates. Stocks of most of these traditional operators have done better than the broader markets this year, except for Wal-Mart ( WMT ) which reports before the market's open on Thursday and whose stock has been a notable laggard since the company's last earnings release back in mid-February.
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33490880-ef6f-40b3-bbd2-ff1239a3ea32
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722030.0
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2018-05-11 00:00:00 UTC
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Notable Friday Option Activity: SYNA, LOW, DE
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DE
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https://www.nasdaq.com/articles/notable-friday-option-activity-syna-low-de-2018-05-11
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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 Synaptics Inc (Symbol: SYNA), where a total of 2,251 contracts have traded so far, representing approximately 225,100 underlying shares. That amounts to about 45.2% of SYNA's average daily trading volume over the past month of 498,555 shares. Particularly high volume was seen for the $50 strike call option expiring June 15, 2018 , with 132 contracts trading so far today, representing approximately 13,200 underlying shares of SYNA. Below is a chart showing SYNA's trailing twelve month trading history, with the $50 strike highlighted in orange:
Lowe's Companies Inc (Symbol: LOW) options are showing a volume of 24,642 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 45% of LOW's average daily trading volume over the past month, of 5.5 million shares. Especially high volume was seen for the $80 strike put option expiring June 15, 2018 , with 2,655 contracts trading so far today, representing approximately 265,500 underlying shares of LOW. Below is a chart showing LOW's trailing twelve month trading history, with the $80 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 11,625 contracts, representing approximately 1.2 million underlying shares or approximately 44.9% of DE's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $150 strike call option expiring May 25, 2018 , with 2,880 contracts trading so far today, representing approximately 288,000 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 SYNA options , LOW 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 $50 strike call option expiring June 15, 2018 , with 132 contracts trading so far today, representing approximately 13,200 underlying shares of SYNA. Especially high volume was seen for the $80 strike put option expiring June 15, 2018 , with 2,655 contracts trading so far today, representing approximately 265,500 underlying shares of LOW. Especially high volume was seen for the $150 strike call option expiring May 25, 2018 , with 2,880 contracts trading so far today, representing approximately 288,000 underlying shares of DE.
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Particularly high volume was seen for the $50 strike call option expiring June 15, 2018 , with 132 contracts trading so far today, representing approximately 13,200 underlying shares of SYNA. Below is a chart showing LOW's trailing twelve month trading history, with the $80 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 11,625 contracts, representing approximately 1.2 million underlying shares or approximately 44.9% of DE's average daily trading volume over the past month, of 2.6 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Synaptics Inc (Symbol: SYNA), where a total of 2,251 contracts have traded so far, representing approximately 225,100 underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Synaptics Inc (Symbol: SYNA), where a total of 2,251 contracts have traded so far, representing approximately 225,100 underlying shares. Particularly high volume was seen for the $50 strike call option expiring June 15, 2018 , with 132 contracts trading so far today, representing approximately 13,200 underlying shares of SYNA. Below is a chart showing LOW's trailing twelve month trading history, with the $80 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 11,625 contracts, representing approximately 1.2 million underlying shares or approximately 44.9% of DE's average daily trading volume over the past month, of 2.6 million shares.
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Especially high volume was seen for the $80 strike put option expiring June 15, 2018 , with 2,655 contracts trading so far today, representing approximately 265,500 underlying shares of LOW. Below is a chart showing LOW's trailing twelve month trading history, with the $80 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 11,625 contracts, representing approximately 1.2 million underlying shares or approximately 44.9% of DE's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $150 strike call option expiring May 25, 2018 , with 2,880 contracts trading so far today, representing approximately 288,000 underlying shares of DE.
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231f9dd6-02aa-4183-bfb9-9922dfcdb210
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722031.0
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2018-05-07 00:00:00 UTC
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Forget What Wall Street Says, Polaris Industries Is Looking Good
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DE
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https://www.nasdaq.com/articles/forget-what-wall-street-says-polaris-industries-looking-good-2018-05-07
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nan
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nan
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When Polaris Industries (NYSE: PII) was mired in protracted product recalls because its popular RZR side-by-sides held the very real risk of spontaneously combusting, shares of the powersports vehicle manufacturer rose. While it is still having trouble getting that problem under control, Polaris recently reported strong earnings across all its divisions -- and its stock plunged.
Although that could be typical stock market contrarianism, investors with a long-term timeline should look at this sharp pullback as a buying opportunity. Consider just how robust Polaris results were:
Despite repeated recalls, sales of off-road vehicles jumped 17%, indicating there's been no lasting damage to RZRs reputation.
Snowmobile sales were up 28%.
Indian Motorcycle retail sales rose by low, double-digit percentages even though the industry for large bikes looks like it's in free fall and rival Harley-Davidson (NYSE: HOG) watches sales tumble.
Global adjacent market sales were up 24%.
Even the aftermarket parts market saw a 1% sales increase, even though its TAP acquisition had slightly lower sales for the period a soft market for light-duty trucks.
Polaris Industries even raised its full-year guidance, and now expects sales to rise 4% to 6% over last year, while raising the low end of its earnings guidance so that it now expects profits to be in a range of $6.05 to $6.20 per share. There really wasn't anything in this report to warrant Polaris stock falling 12% afterwards.
No good deed goes unpunished
So what's the problem? Tough to say. Despite Harley's horrible earnings where bike sales plunged 12% in the first quarter, its stock actually jumped 5% on the news as investors bought into management pinky-swearing that they're going to turn things around. My colleague Travis Hoium suggests it may be related to the midpoint of Polaris' earnings guidance range , which while increased, is still below analyst expectations.
It's a good reason why investors should ignore what Wall Street is saying about Polaris (and Harley-Davidson, for that matter) and do the opposite.
Harley has been able to maintain its profit margins because it refuses to engage in discounting that many in the industry, including Polaris, engage in. It believes its products are worth a premium, and is willing to forego sales as a result. Conversely, Polaris continues to see Indian motorcycle sales grow, it's also maintaining sales growth with the RZR.
A leader of its own
Polaris is the industry giant in off-road vehicles where Statista shows its 41% share of the side-by-side market is nearly identical to its next four competitors combined. Can Am has a 13% share followed by John Deere at 12%, while Textron 's Arctic Cat and Honda (NYSE: HMC) tied for fourth place at 9%.
This is important because off-road vehicles represent the lion's share of where Polaris derives its revenues, representing 64% of the $1.3 billion it generated in the first quarter. It was two-thirds of the total for all of 2017.
The aftermarket segment remains the real weak spot for the powersports vehicle manufacturer. I was never very keen on the acquisition in part because it bought into a weakening market for Jeeps and light-duty trucks. Despite the massive 45% gain Fiat Chrysler (NYSE: FCAU) scored in Jeep sales in March (it was the brand's biggest gain ever), sales had been down 11% in 2017 as fleet sales were reduced, suggesting TAP's performance for Polaris could be a volatile one.
Beyond that, however, Polaris Industries is showing the kind of operational excellence investors have come to expect. Though it still needs to fix its vehicle fire hazard issues, it is becoming less of a problem as time goes on, and investors would do well to focus instead on the discount the market has given them on its stock.
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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Polaris Industries. The Motley Fool recommends Textron. 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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When Polaris Industries (NYSE: PII) was mired in protracted product recalls because its popular RZR side-by-sides held the very real risk of spontaneously combusting, shares of the powersports vehicle manufacturer rose. Despite Harley's horrible earnings where bike sales plunged 12% in the first quarter, its stock actually jumped 5% on the news as investors bought into management pinky-swearing that they're going to turn things around. A leader of its own Polaris is the industry giant in off-road vehicles where Statista shows its 41% share of the side-by-side market is nearly identical to its next four competitors combined.
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Consider just how robust Polaris results were: Despite repeated recalls, sales of off-road vehicles jumped 17%, indicating there's been no lasting damage to RZRs reputation. Despite Harley's horrible earnings where bike sales plunged 12% in the first quarter, its stock actually jumped 5% on the news as investors bought into management pinky-swearing that they're going to turn things around. When Polaris Industries (NYSE: PII) was mired in protracted product recalls because its popular RZR side-by-sides held the very real risk of spontaneously combusting, shares of the powersports vehicle manufacturer rose.
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Despite the massive 45% gain Fiat Chrysler (NYSE: FCAU) scored in Jeep sales in March (it was the brand's biggest gain ever), sales had been down 11% in 2017 as fleet sales were reduced, suggesting TAP's performance for Polaris could be a volatile one. When Polaris Industries (NYSE: PII) was mired in protracted product recalls because its popular RZR side-by-sides held the very real risk of spontaneously combusting, shares of the powersports vehicle manufacturer rose. While it is still having trouble getting that problem under control, Polaris recently reported strong earnings across all its divisions -- and its stock plunged.
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No good deed goes unpunished So what's the problem? A leader of its own Polaris is the industry giant in off-road vehicles where Statista shows its 41% share of the side-by-side market is nearly identical to its next four competitors combined. When Polaris Industries (NYSE: PII) was mired in protracted product recalls because its popular RZR side-by-sides held the very real risk of spontaneously combusting, shares of the powersports vehicle manufacturer rose.
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17c4ba18-61cc-49df-ba27-c49fc0019cd8
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722032.0
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2018-05-01 00:00:00 UTC
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Noteworthy Tuesday Option Activity: DE, TRUP, WHR
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-de-trup-whr-2018-05-01
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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 Deere & Co. (Symbol: DE), where a total of 12,415 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 43.7% of DE's average daily trading volume over the past month of 2.8 million shares. Especially high volume was seen for the $95 strike put option expiring May 18, 2018 , with 2,045 contracts trading so far today, representing approximately 204,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $95 strike highlighted in orange:
Trupanion Inc (Symbol: TRUP) saw options trading volume of 1,715 contracts, representing approximately 171,500 underlying shares or approximately 43.7% of TRUP's average daily trading volume over the past month, of 392,865 shares. Particularly high volume was seen for the $20 strike put option expiring August 17, 2018 , with 510 contracts trading so far today, representing approximately 51,000 underlying shares of TRUP. Below is a chart showing TRUP's trailing twelve month trading history, with the $20 strike highlighted in orange:
And Whirlpool Corp (Symbol: WHR) saw options trading volume of 4,303 contracts, representing approximately 430,300 underlying shares or approximately 43.4% of WHR's average daily trading volume over the past month, of 992,555 shares. Especially high volume was seen for the $150 strike put option expiring May 18, 2018 , with 520 contracts trading so far today, representing approximately 52,000 underlying shares of WHR. Below is a chart showing WHR's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for DE options , TRUP options , or WHR 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 $95 strike put option expiring May 18, 2018 , with 2,045 contracts trading so far today, representing approximately 204,500 underlying shares of DE. Particularly high volume was seen for the $20 strike put option expiring August 17, 2018 , with 510 contracts trading so far today, representing approximately 51,000 underlying shares of TRUP. Especially high volume was seen for the $150 strike put option expiring May 18, 2018 , with 520 contracts trading so far today, representing approximately 52,000 underlying shares of WHR.
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Below is a chart showing DE's trailing twelve month trading history, with the $95 strike highlighted in orange: Trupanion Inc (Symbol: TRUP) saw options trading volume of 1,715 contracts, representing approximately 171,500 underlying shares or approximately 43.7% of TRUP's average daily trading volume over the past month, of 392,865 shares. Below is a chart showing TRUP's trailing twelve month trading history, with the $20 strike highlighted in orange: And Whirlpool Corp (Symbol: WHR) saw options trading volume of 4,303 contracts, representing approximately 430,300 underlying shares or approximately 43.4% of WHR's average daily trading volume over the past month, of 992,555 shares. Below is a chart showing WHR's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for DE options , TRUP options , or WHR options , visit StockOptionsChannel.com.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 12,415 contracts have traded so far, representing approximately 1.2 million underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $95 strike highlighted in orange: Trupanion Inc (Symbol: TRUP) saw options trading volume of 1,715 contracts, representing approximately 171,500 underlying shares or approximately 43.7% of TRUP's average daily trading volume over the past month, of 392,865 shares. Below is a chart showing TRUP's trailing twelve month trading history, with the $20 strike highlighted in orange: And Whirlpool Corp (Symbol: WHR) saw options trading volume of 4,303 contracts, representing approximately 430,300 underlying shares or approximately 43.4% of WHR's average daily trading volume over the past month, of 992,555 shares.
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Especially high volume was seen for the $95 strike put option expiring May 18, 2018 , with 2,045 contracts trading so far today, representing approximately 204,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $95 strike highlighted in orange: Trupanion Inc (Symbol: TRUP) saw options trading volume of 1,715 contracts, representing approximately 171,500 underlying shares or approximately 43.7% of TRUP's average daily trading volume over the past month, of 392,865 shares. Below is a chart showing TRUP's trailing twelve month trading history, with the $20 strike highlighted in orange: And Whirlpool Corp (Symbol: WHR) saw options trading volume of 4,303 contracts, representing approximately 430,300 underlying shares or approximately 43.4% of WHR's average daily trading volume over the past month, of 992,555 shares.
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25661e29-ecb3-4ae7-8e95-b5c781fb1d5e
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722033.0
|
2018-04-26 00:00:00 UTC
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Deere is Now Oversold (DE)
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DE
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https://www.nasdaq.com/articles/deere-now-oversold-de-2018-04-26
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $134.91 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 45.1. A bullish investor could look at DE's 28.3 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. The chart below shows the one year performance of DE shares:
Looking at the chart above, DE's low point in its 52 week range is $109.79 per share, with $175.26 as the 52 week high point - that compares with a last trade of $134.51.
According to the ETF Finder at ETF Channel, DE makes up 9.78% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading relatively unchanged on the day Thursday.
Find out what 9 other oversold 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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In trading on Thursday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $134.91 per share. A bullish investor could look at DE's 28.3 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. The chart below shows the one year performance of DE shares: Looking at the chart above, DE's low point in its 52 week range is $109.79 per share, with $175.26 as the 52 week high point - that compares with a last trade of $134.51.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $134.91 per share. The chart below shows the one year performance of DE shares: Looking at the chart above, DE's low point in its 52 week range is $109.79 per share, with $175.26 as the 52 week high point - that compares with a last trade of $134.51. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $134.91 per share. The chart below shows the one year performance of DE shares: Looking at the chart above, DE's low point in its 52 week range is $109.79 per share, with $175.26 as the 52 week high point - that compares with a last trade of $134.51. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $134.91 per share. According to the ETF Finder at ETF Channel, DE makes up 9.78% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading relatively unchanged on the day Thursday. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.
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ead4f65f-d78d-4ecc-b659-441b8283f547
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722034.0
|
2018-04-24 00:00:00 UTC
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Caterpillar Inc. Management Confirmed Its Outlook — Build Your Profits
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DE
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https://www.nasdaq.com/articles/caterpillar-inc-management-confirmed-its-outlook-build-your-profits-2018-04-24
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Caterpillar Inc. (NYSE: CAT ) stock has not been easy to own through the turbulence of the past two months. Tariff war headlines with China made CAT an easy target for shorts. Fears were overblown over retaliation from China. And stocks like Caterpillar, Boeing Co (NYSE: BA ) and Deere & Company (NYSE: DE ) became easy targets in spite of their great fundamentals.
I've been long CAT stock for a while and profitable in that trade. This morning, management reported an excellent quarter where they beat expectations, and more importantly raised guidance going forward.
Management cited stronger demand than anticipated. This is as bullish a statement as can be for any company. Stronger demand on CAT products and services confirms my macroeconomic thesis for this year, so I want to add to my bullish exposure to CAT stock.
This time instead of adding shares or upside calls, I will use options to sell downside risk against proven support. This way I get to enjoy my longs in CAT without immediate incremental risk. My new levels of support allow for a sizable descent from current price just in case we hit more turbulent headlines that have nothing to do with deterioration of CAT business.
5 Terrific Tech Stocks to Buy Ahead of Q1 Earnings
Fundamentally, CAT stock is not expensive from a price-earnings ratio. It is well priced within its competitors so there is no undue risk from a value perspective. Furthermore, the quality of the management team and the maturity of the company contribute to my strong conviction in the bullish thesis. Meaning this is a proven management team that is not likely to commit errors under normal operating conditions.
Wall Street experts are not overzealous on the stock which is good. And it is now trading well below their price target ranges leaving plenty of room of upside which fits with my bullish thesis on Caterpillar stock.
Technically, $160 per share has been difficult for CAT since the February correction. However it does now present an opportunity. The bulls have been setting higher lows and testing this neckline area. If it can break through that level then the upside target should be $168 per share or higher.
If I am long the stock I stay in it. And this additional risk described here would there by lower my entry cost with plenty of room for error.
Caterpillar Stock Trade Ideas
The Trade: Sell the CAT Nov $130 naked put and collect $3.30 to open. Here I have a 85% theoretical chance that I would retain maximum gains. But if the price falls below my strike then I accrue losses below $126.70.
Those who want to mitigate the risk that comes with selling naked puts can sell spreads instead.
Don't Chase the Rally in Under Armour Inc Stock
The Alternate Trade: Sell the CAT Nov $130/$125 credit put spread. The spread has the same odds but would deliver 17% yield on risk. Neither trade require a rally to profit.
Since there are no guarantees when investing in stocks, I never risk more than I can afford to lose.
Learn how to generate income from options here . 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 Caterpillar Inc. Management Confirmed Its Outlook - Build Your 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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My new levels of support allow for a sizable descent from current price just in case we hit more turbulent headlines that have nothing to do with deterioration of CAT business. And it is now trading well below their price target ranges leaving plenty of room of upside which fits with my bullish thesis on Caterpillar stock. Don't Chase the Rally in Under Armour Inc Stock The Alternate Trade: Sell the CAT Nov $130/$125 credit put spread.
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Caterpillar Stock Trade Ideas The Trade: Sell the CAT Nov $130 naked put and collect $3.30 to open. More From InvestorPlace 3 Earnings Beats -- And What It Means for Stocks Still to Report 3-Plus Customer-Facing 5G Stocks You Didn't Know About 7 Retirement Stocks for the 30-and-Under Crowd Short These 3 Tech Stocks (Including Facebook, Inc.) Compare Brokers The post Caterpillar Inc. Management Confirmed Its Outlook - Build Your Profits appeared first on InvestorPlace . Tariff war headlines with China made CAT an easy target for shorts.
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Caterpillar Stock Trade Ideas The Trade: Sell the CAT Nov $130 naked put and collect $3.30 to open. More From InvestorPlace 3 Earnings Beats -- And What It Means for Stocks Still to Report 3-Plus Customer-Facing 5G Stocks You Didn't Know About 7 Retirement Stocks for the 30-and-Under Crowd Short These 3 Tech Stocks (Including Facebook, Inc.) Compare Brokers The post Caterpillar Inc. Management Confirmed Its Outlook - Build Your Profits appeared first on InvestorPlace . Tariff war headlines with China made CAT an easy target for shorts.
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I've been long CAT stock for a while and profitable in that trade. And it is now trading well below their price target ranges leaving plenty of room of upside which fits with my bullish thesis on Caterpillar stock. If it can break through that level then the upside target should be $168 per share or higher.
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10f0915c-ac98-438c-a904-1fff9301b5ac
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722035.0
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2018-04-24 00:00:00 UTC
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DE Crosses Below Key Moving Average Level
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DE
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https://www.nasdaq.com/articles/de-crosses-below-key-moving-average-level-2018-04-24
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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 below their 200 day moving average of $142.40, changing hands as low as $137.41 per share. Deere & Co. shares are currently trading down about 5.5% 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 $109.79 per share, with $175.26 as the 52 week high point - that compares with a last trade of $138.03.
According to the ETF Finder at ETF Channel, DE makes up 10.50% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.6% on the day Tuesday.
Click here to find out which 9 other 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 Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $142.40, changing hands as low as $137.41 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 $109.79 per share, with $175.26 as the 52 week high point - that compares with a last trade of $138.03. Deere & Co. shares are currently trading down about 5.5% on the day.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $142.40, changing hands as low as $137.41 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 $109.79 per share, with $175.26 as the 52 week high point - that compares with a last trade of $138.03. Deere & Co. shares are currently trading down about 5.5% on the day.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $142.40, changing hands as low as $137.41 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 $109.79 per share, with $175.26 as the 52 week high point - that compares with a last trade of $138.03. Deere & Co. shares are currently trading down about 5.5% on the day.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $142.40, changing hands as low as $137.41 per share. According to the ETF Finder at ETF Channel, DE makes up 10.50% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.6% on the day Tuesday. Deere & Co. shares are currently trading down about 5.5% on the day.
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d9edc0f5-31e9-43c0-8571-7b899cf70de7
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722036.0
|
2018-04-24 00:00:00 UTC
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Noteworthy Tuesday Option Activity: FB, A, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-fb-de-2018-04-24
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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 Facebook Inc (Symbol: FB), where a total volume of 256,188 contracts has been traded thus far today, a contract volume which is representative of approximately 25.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 58.9% of FB's average daily trading volume over the past month, of 43.5 million shares. Particularly high volume was seen for the $170 strike call option expiring April 27, 2018 , with 18,633 contracts trading so far today, representing approximately 1.9 million underlying shares of FB. Below is a chart showing FB's trailing twelve month trading history, with the $170 strike highlighted in orange:
Agilent Technologies, Inc. (Symbol: A) options are showing a volume of 13,825 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 54.9% of A's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $70 strike call option expiring May 18, 2018 , with 12,526 contracts trading so far today, representing approximately 1.3 million underlying shares of A. Below is a chart showing A's trailing twelve month trading history, with the $70 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 14,314 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 54.5% of DE's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $140 strike put option expiring June 15, 2018 , with 1,608 contracts trading so far today, representing approximately 160,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $140 strike highlighted in orange:
For the various different available expirations for FB options , A 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 $170 strike call option expiring April 27, 2018 , with 18,633 contracts trading so far today, representing approximately 1.9 million underlying shares of FB. Particularly high volume was seen for the $70 strike call option expiring May 18, 2018 , with 12,526 contracts trading so far today, representing approximately 1.3 million underlying shares of A. Especially high volume was seen for the $140 strike put option expiring June 15, 2018 , with 1,608 contracts trading so far today, representing approximately 160,800 underlying shares of DE.
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That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 54.9% of A's average daily trading volume over the past month, of 2.5 million shares. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 54.5% 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 Facebook Inc (Symbol: FB), where a total volume of 256,188 contracts has been traded thus far today, a contract volume which is representative of approximately 25.6 million underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Facebook Inc (Symbol: FB), where a total volume of 256,188 contracts has been traded thus far today, a contract volume which is representative of approximately 25.6 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $170 strike call option expiring April 27, 2018 , with 18,633 contracts trading so far today, representing approximately 1.9 million underlying shares of FB. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 54.5% of DE's average daily trading volume over the past month, of 2.6 million shares.
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Particularly high volume was seen for the $170 strike call option expiring April 27, 2018 , with 18,633 contracts trading so far today, representing approximately 1.9 million underlying shares of FB. Especially high volume was seen for the $140 strike put option expiring June 15, 2018 , with 1,608 contracts trading so far today, representing approximately 160,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $140 strike highlighted in orange: For the various different available expirations for FB options , A options , or DE options , visit StockOptionsChannel.com.
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271c908b-a058-49d2-beae-ec13ea28e2ad
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722037.0
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2018-04-23 00:00:00 UTC
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Sonoco (SON) Tops Q1 Earnings & Sales Estimates, Lifts View
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DE
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https://www.nasdaq.com/articles/sonoco-son-tops-q1-earnings-sales-estimates-lifts-view-2018-04-23
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nan
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nan
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Sonoco Products CompanySON recently reported first-quarter 2018 results, wherein adjusted earnings increased 25% year over year to 74 cents per share and came close to the higher end of management's guided range of 69-75 cents. Earnings also beat the Zacks Consensus Estimate of 72 cents.
On a reported basis, including one-time items, earnings per share came in at 73 cents compared with 53 cents recorded in the prior-year quarter.
Sonoco's net sales grew 11% year on year to $1.30 billion. The revenue figure came in line with the Zacks Consensus Estimate. The uptick in sales was driven by higher selling prices to counter elevated freight, wages and operating inflation, as well as solid sales from acquisitions, modest volume growth and the positive impact of foreign exchange.
Sonoco Products Company Price, Consensus and EPS Surprise
Sonoco Products Company Price, Consensus and EPS Surprise | Sonoco Products Company Quote
Operational Update
Cost of sales came in at $1.05 billion, up 11% year on year. Gross profit during the reported quarter totaled $250.6 million, a 12.4% improvement year over year. Gross margin expanded 20 basis points (bps) year over year to 19.2%.
Selling, general and administrative expenses totaled $137 million, up 9.8% year over year, chiefly due to acquisition-related costs and wage inflation. Sonoco's adjusted operating income totaled $113.2 million in the quarter, up 15.7% from $97.8 million reported in the prior-year quarter. Operating margin improved 40 bps year over year to 8.7% in the first quarter.
Segment Performance
The Consumer Packaging segment reported net sales of $570 million, up 18% from $482 million recorded in the prior-year quarter, driven by acquisitions, positive translation impact of changes in foreign-exchange rates, and higher selling prices. Operating profit came in at $61.1 million, up 2.7% from the year-ago quarter.
Net sales at the Paper and Industrial Converted Products segment were $461 million, up 4% year over year, led by the positive impact of foreign exchange, and higher selling prices implemented to recover higher freight and other operating costs. Operating profit came in at $39.8 million, surging 48% year over year.
The Display and Packaging segment's net sales came in at $143 million, up 24% from $115 million in the year-earlier quarter, primarily backed by volume growth related to a new pack center near Atlanta, and the positive foreign exchange impact. The segment reported a profit of $1.7 million in the reported quarter compared with $3.2 million in the year-earlier quarter.
The Protective Solution segment's net sales came in at $131 million, down marginally from $133 million reported in the year-earlier quarter as the positive impact of foreign exchange and higher selling prices were offset by lower volume and mix. Operating profit at the segment totaled $10.7 million, flat year over year.
Financial Performance
Sonoco reported cash and cash equivalents of $305 million at the end of first-quarter 2018, up from $255 million recorded at year-end 2017. The company generated $119.8 million in cash from operating activities during the quarter compared with $67.4 million recorded in the prior-year period. Long-term debt was $1.29 billion as of Apr 1, 2018, which remained flat compared to the year-end 2017 tally. At the end of the reported quarter, the company had a total debt-to-capital ratio of 44.9% compared with 45.6% at Dec 31, 2017.
On Apr 12, Sonoco completed the acquisition of Highland Packaging Solutions - a leading manufacturer of thermoformed packaging for fresh fruits, vegetables and eggs - for approximately $150 million. This is expected to strengthen the company's thermoforming business.
On Apr 18, Sonoco hiked its quarterly dividend by 5.1% to 41cents per share from the previous dividend of 39 cents per share. The dividend will be paid on Jun 8, to shareholders of record as of May 11, 2018.
Guidance
For full-year 2018, Sonoco raised its adjusted earnings per share guidance to $3.22-$3.32 from the prior $3.16-$3.26. The outlook reflects a downward revision in the expected effective tax rate to approximately 26% and expected earnings accretion from the Highland Packaging acquisition. Compared with the earnings of $2.79 per share in 2017, the mid-point of the guidance reflects year-over-year growth of 17%.
For second-quarter 2018, the company projects adjusted earnings per share of 83-89 cents. Compared with the prior-year quarter's earnings per share of 43 cents, the mid-point of the guidance reflects 100% year-over-year growth.
Share Price Performance
Over the past year, Sonoco has underperformed the industry it belongs to. The stock has lost around 2%, while the industry has recorded growth of 10%.
Zacks Rank and Other Key Picks
Currently, Sonoco carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the same space include Alarm.com Holdings, Inc. ALRM , Deere & Company DE , and Caterpillar Inc. CAT . While Alarm.com and Deere sport a Zacks Rank #1 (Strong Buy), Caterpillar carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Alarm.com has a long-term earnings growth rate of 15.6%. The stock has appreciated 29% in a year's time.
Deere has a long-term earnings growth rate of 5.7%. The company's shares have been up 33% during the same time frame.
Caterpillar has a long-term earnings growth rate of 12%. Its shares have rallied 58% in the past year.
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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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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
Sonoco Products Company (SON): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alarm.com Holdings, Inc. (ALRM): 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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Other top-ranked stocks in the same space include Alarm.com Holdings, Inc. ALRM , Deere & Company DE , and Caterpillar Inc. CAT . Sonoco Products CompanySON recently reported first-quarter 2018 results, wherein adjusted earnings increased 25% year over year to 74 cents per share and came close to the higher end of management's guided range of 69-75 cents. On a reported basis, including one-time items, earnings per share came in at 73 cents compared with 53 cents recorded in the prior-year quarter.
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Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report To read this article on Zacks.com click here. Sonoco Products CompanySON recently reported first-quarter 2018 results, wherein adjusted earnings increased 25% year over year to 74 cents per share and came close to the higher end of management's guided range of 69-75 cents. On a reported basis, including one-time items, earnings per share came in at 73 cents compared with 53 cents recorded in the prior-year quarter.
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Sonoco Products CompanySON recently reported first-quarter 2018 results, wherein adjusted earnings increased 25% year over year to 74 cents per share and came close to the higher end of management's guided range of 69-75 cents. Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report To read this article on Zacks.com click here. On a reported basis, including one-time items, earnings per share came in at 73 cents compared with 53 cents recorded in the prior-year quarter.
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Sonoco Products CompanySON recently reported first-quarter 2018 results, wherein adjusted earnings increased 25% year over year to 74 cents per share and came close to the higher end of management's guided range of 69-75 cents. On a reported basis, including one-time items, earnings per share came in at 73 cents compared with 53 cents recorded in the prior-year quarter. The uptick in sales was driven by higher selling prices to counter elevated freight, wages and operating inflation, as well as solid sales from acquisitions, modest volume growth and the positive impact of foreign exchange.
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699c800a-ec57-4fd8-ad5d-1d1a2594e5be
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722038.0
|
2018-04-20 00:00:00 UTC
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Crown Holdings' (CCK) Q1 Earnings & Revenues Beat, View Up
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DE
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https://www.nasdaq.com/articles/crown-holdings-cck-q1-earnings-revenues-beat-view-up-2018-04-20
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nan
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nan
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Crown Holdings, Inc.CCK delivered first-quarter 2018 adjusted earnings per share of 94 cents, which increased 22% year over year. Also, the figure comfortably beat the Zacks Consensus Estimate of 80 cents. Earnings also came ahead of management's guided range of 75-85 cents.
On a reported basis, the company reported earnings of 67 cents per share compared to 77 cents in the prior-year quarter.
Net sales in the quarter rose 15.6% year over year to $2,197 million. The revenue figure also surpassed the Zacks Consensus Estimate of $2,071 million. Year-over-year sales growth was driven by improved beverage can volumes, pass through of higher material costs to customers and favorable currency-translation impact.
Crown Holdings, Inc. Price, Consensus and EPS Surprise
Crown Holdings, Inc. Price, Consensus and EPS Surprise | Crown Holdings, Inc. Quote
Cost and Margins
Cost of products sold increased 18% year over year to $1,808 million. On a year-over-year basis, gross profit improved 5% to $389 million, while gross margin contracted 180 basis points (bps) to 17.7% in the quarter.
Selling and administrative expenses remained flat year over year at $90 million. Adjusted segment operating income increased 5.9% year over year to $234 million in the reported quarter. Operating margin shrunk 90 bps to 10.7% from 11.6% recorded in the year-ago quarter.
Segment Performance
Net sales from the Americas Beverage segment were $758 million, up 12.5% from $674 million reported in the year-ago quarter. Segment operating profit decreased 5.8% to $98 million from $104 million in the year-earlier quarter.
The European Beverage segment's sales increased 22% year over year to $371 million. Operating income rose 10% year over year to $55 million.
Revenues in the European Food segment were up 13% year over year to $428 million. Segment operating profit went up 9.8% to $56 million from $51 million recorded in the year-ago quarter.
Revenues in the Asia-Pacific segment improved 21% year over year to $337 million. Operating profit went up to $44 million from $39 million reported in the prior-year quarter.
Financial Update
Crown Holdings had cash and cash equivalents of $2,201 million at the end of the first quarter compared with $338 million at the end of the prior-year quarter. The company recorded cash used in operating activities of $751 million in the reported quarter compared to cash usage of $577 million recorded in the year-ago quarter.
Adjusted free cash flow was $665 million in the first quarter compared with $427 million in the prior-year quarter. As of the quarter end, Crown Holdings' total debt increased to $7,810 million compared with $5,243 million as of the year-ago quarter end.
On Apr 3, Crown Holdings concluded the previously-announced acquisition of Signode for $3.9 billion. The buyout will add a portfolio of premier transit and protective packaging franchises to Crown Holdings' metal packaging business, and significantly boost its free cash flow as well.
Outlook
Crown Holdings raised its adjusted diluted earnings per share guidance of $5.35-$5.55 from $4.30-$4.50, for full-year 2018. It also projects second-quarter 2018 earnings per share of $1.55-$1.65.
The company expects to begin production at the new one-line beverage can plant in Yangon, Myanmar, during second-quarter 2018, as well as the new two-line beverage can plant in Valencia, Spain, during fourth-quarter 2018. The Valencia plant will commence conversion from steel to aluminum for beverage cans in the expanding Spanish market. Crown Holdings will also build a third beverage can line at its existing plant in Phnom Penh, Cambodia, to start production during the fourth quarter. Additionally, the new glass facility in Chihuahua, Mexico, began operations in January 2018 to serve the growing beer market in the northern part of the country.
These initiatives reflect that beverage cans continue to be the increasingly preferred package of beverage marketers. Thus, growing demand for beverage can volumes will drive the company's performance.
Share Price Performance
In the past year, Crown Holdings has underperformed the industry it belongs to. Its shares have lost 6.5%, while the industry recorded growth of 6.1%.
Zacks Rank & Other Stocks to Consider
Crown Holdings carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the same sector are Deere & Company DE , Caterpillar Inc. CAT and Sealed Air Corporation SEE . While Deere sports a Zacks Rank #1 (Strong Buy), Caterpillar and Sealed Air carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere has a long-term earnings growth rate of 5.7%. Its shares have surged 36%, over the past year.
Caterpillar has a long-term earnings growth rate of 12%. The company's shares have rallied 64.5% over the past year.
Sealed Air has a long-term earnings growth rate of 11.3%. The stock has gained 0.8% 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
Crown Holdings, Inc. (CCK): Free Stock Analysis Report
Sealed Air Corporation (SEE): Free Stock Analysis Report
Caterpillar Inc. (CAT): 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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Crown Holdings, Inc.CCK delivered first-quarter 2018 adjusted earnings per share of 94 cents, which increased 22% year over year. Earnings also came ahead of management's guided range of 75-85 cents. Operating margin shrunk 90 bps to 10.7% from 11.6% recorded in the year-ago quarter.
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Click to get this free report Crown Holdings, Inc. (CCK): Free Stock Analysis Report Sealed Air Corporation (SEE): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Crown Holdings, Inc.CCK delivered first-quarter 2018 adjusted earnings per share of 94 cents, which increased 22% year over year. Earnings also came ahead of management's guided range of 75-85 cents.
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The company recorded cash used in operating activities of $751 million in the reported quarter compared to cash usage of $577 million recorded in the year-ago quarter. Click to get this free report Crown Holdings, Inc. (CCK): Free Stock Analysis Report Sealed Air Corporation (SEE): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Crown Holdings, Inc.CCK delivered first-quarter 2018 adjusted earnings per share of 94 cents, which increased 22% year over year.
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Crown Holdings, Inc.CCK delivered first-quarter 2018 adjusted earnings per share of 94 cents, which increased 22% year over year. Earnings also came ahead of management's guided range of 75-85 cents. Operating margin shrunk 90 bps to 10.7% from 11.6% recorded in the year-ago quarter.
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a43bd7fd-e7ac-4a33-b0fe-ae0d45cc1cda
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722039.0
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2018-04-19 00:00:00 UTC
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Can Caterpillar (CAT) Retain Its Beat Streak in Q1 Earnings?
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DE
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https://www.nasdaq.com/articles/can-caterpillar-cat-retain-its-beat-streak-in-q1-earnings-2018-04-19
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nan
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nan
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Caterpillar Inc.CAT is slated to report first-quarter 2018 results on Apr 24 before the opening bell. Notably, the mining and construction equipment behemoth has outpaced earnings and revenue estimates in all the quarters of 2017 and delivered a 101% improvement in earnings for the year. After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, this recovery was made possible by improvement in the construction sector, pickup in Resource Industries as well as its disciplined cost-control efforts.
Consequently, investors are keen to know whether Caterpillar will be able to maintain the momentum in the first quarter of 2018 as well.
Given impressive results, the company's share price has outperformed the industry in the past year. The shares gained 64.6%, ahead of the industry's growth of 12.8%. An earnings beat will help the company sustain the price momentum.
Looking at the upbeat estimates for the both earnings and revenues for the first quarter, it seems likely that the company will deliver improved year-over-year earnings on both metrics. This is also supported by strong fourth-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 first-quarter results.
Caterpillar Inc. Price and EPS Surprise
Caterpillar Inc. price-eps-surprise | Caterpillar Inc. Quote
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 fourth-quarter 2017, is expected to log year-over-year growth of 18% to $10.8 billion in the first quarter of 2018. We believe the company will witness growth in all its segments - Construction Industries, Resource Industries, Energy & Transportation. Also at fiscal 2017 end, Caterpillar's backlog was at $15.8 billion, up from $15.4 billion at third-quarter 2017 end, primarily driven by higher backlog in Resource Industries. This bodes well for performance in the to-be-reported quarter.
The Zacks Consensus Estimate for total sales of $11.6 billion for the first quarter indicates 18% growth from the prior-year quarter.
Caterpillar's Resource Industries' performance will drive growth in the first-quarter 2018. Sales are being driven by continued strong demand for aftermarket parts. Global economic momentum and increasing commodity prices is restoring miners' profitability and they are resuming capital spending. This bodes well for the segment. Per the Zacks Consensus Estimate, Resource Industries is anticipated to witness a 23% year-over-year growth to $2.1 billion.
The Construction Industries is expected to remain strong in first-quarter 2018 as China and other APAC countries will continue to drive growth owing to investments in infrastructure. In North America, continued improvement in residential and non-residential construction as well as revival in infrastructure demand will drive revenues.
For the Energy & Transportation segment, sales into Oil and Gas applications are likely to increase in the quarter, led by reciprocating engines for gas compression and well-servicing activity in North America. Sales to Transportation sector will benefit from recent acquisitions in rail services. The Zacks Consensus Estimates for the segment's revenues is at $3.9 billion, projecting 17% year-over-year growth.
Focus on Cost Control to Boost Profits
In September 2015, Caterpillar set upon significant restructuring and cost reduction initiative, with actions expected through 2018. Once fully implemented, the plan would lower annual operating costs by about $1.5 billion. In first-quarter 2018, revenue growth along with cost reduction will lead to an improved bottom-line as well.
For the quarter, the Zacks Consensus Estimate for Profit before Taxes for the Machinery, Energy & Transportation segment is pegged at $1.4 billion, a substantial improvement from the prior-year quarter's profit of $0.1 billion. This will be driven by a 49% rise in the Construction segment's operating profit to $946 million, as per the latest Zacks Consensus Estimates. Further, the Resource Industries segment is expected to report an operating profit of $264 million, an improvement of 67% over $158 million reported in the prior-year quarter. The Energy & Transportation segment is expected to report operating profit of $688 million, a rise of 25% from the prior-year quarter.
Further, the Zacks Consensus Estimate for earnings per share of $1.77 for the quarter reflects an improvement of 65% on a year-over-year basis.
Here is what our quantitative model predicts:
Caterpillar has the right combination of two main ingredients - a positive Earnings ESP and Zacks Rank #3 (Hold) or higher - which shows that it is likely to beat earnings in the to-be-reported quarter.
Zacks ESP: The Earnings ESP for Caterpillar is +4.07%. This is because the Most Accurate estimate of $2.20 is above the Zacks Consensus Estimate of $1.77. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Caterpillar carries a Zacks Rank #2 (Buy), which combined with a positive ESP makes us reasonably confident of a positive earnings surprise.
Other Stocks Worth a Look
Here are a few other industrial products stocks worth considering as they too have the right combination of elements to post an earnings beat this quarter.
Axon Enterprise, Inc. AAXN has an Earnings ESP of +12.50% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here . Axon's shares have surged 90% in the past year.
The Earnings ESP for Deere & Company DE is +2.69%. It sports a Zacks Rank #1. Shares of Deere have gone up 38% in a year's time.
A. O. Smith Corporation AOS has an Earnings ESP of +0.96% and a Zacks Rank #2. Its shares have gone up 31% in a year's time.
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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
Caterpillar Inc. (CAT): Free Stock Analysis Report
A. O. Smith Corporation (AOS): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Axon Enterprise, Inc (AAXN): 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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In North America, continued improvement in residential and non-residential construction as well as revival in infrastructure demand will drive revenues. Notably, the mining and construction equipment behemoth has outpaced earnings and revenue estimates in all the quarters of 2017 and delivered a 101% improvement in earnings for the year. After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, this recovery was made possible by improvement in the construction sector, pickup in Resource Industries as well as its disciplined cost-control efforts.
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Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the mining and construction equipment behemoth has outpaced earnings and revenue estimates in all the quarters of 2017 and delivered a 101% improvement in earnings for the year. After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, this recovery was made possible by improvement in the construction sector, pickup in Resource Industries as well as its disciplined cost-control efforts.
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Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the mining and construction equipment behemoth has outpaced earnings and revenue estimates in all the quarters of 2017 and delivered a 101% improvement in earnings for the year. After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, this recovery was made possible by improvement in the construction sector, pickup in Resource Industries as well as its disciplined cost-control efforts.
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Notably, the mining and construction equipment behemoth has outpaced earnings and revenue estimates in all the quarters of 2017 and delivered a 101% improvement in earnings for the year. After suffering a 36% drop in earnings in fiscal 2016 due to weak end-user demand in most of the industries it serves, this recovery was made possible by improvement in the construction sector, pickup in Resource Industries as well as its disciplined cost-control efforts. Looking at the upbeat estimates for the both earnings and revenues for the first quarter, it seems likely that the company will deliver improved year-over-year earnings on both metrics.
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4df96fa3-7b05-4c4a-8150-94f88d71a7cb
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722040.0
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2018-04-19 00:00:00 UTC
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Valmont's (VMI) Q1 Earnings and Revenues Beat Estimates
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DE
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https://www.nasdaq.com/articles/valmonts-vmi-q1-earnings-and-revenues-beat-estimates-2018-04-19
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nan
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nan
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Valmont Industries, Inc.VMI reported a profit of roughly $39.3 million or $1.72 per share in first-quarter 2018, up 0.7% from net earnings of around $39 million or $1.72 recorded a year ago. Adjusted earnings for the quarter were $1.87 per share, exceeding the Zacks Consensus Estimate of $1.79.
Net sales for the quarter were $698.7 million, up 9.6% year over year. The figure surpassed the Zacks Consensus Estimate of $682 million. Revenues rose across all segments in the quarter.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont Industries, Inc. Price, Consensus and EPS Surprise | Valmont Industries, Inc. Quote
Segment Review
Broadly, the Omaha, NE-based company classifies its business segments as infrastructure- and agriculture-related.
Infrastructure-Related
Engineered Support Structures : The segment's sales of $225 million were 9.8% higher than the prior-year quarter owing to increased highway safety product sales in Australia, higher structures sales across North America and Europe, and favorable currency swings.
Utility Support Structures : Sales rose 4.8% year over year to $210 million on the back of utility investments in the North American grid to improve reliability and connectivity, and higher demand for renewable projects.
Coatings : This segment recorded year-over-year net sales growth of 15.5% to $84.9 million. This was mainly driven by improved external market demand from economic growth across all regions.
Agriculture-Related
Irrigation : The segment reported net sales of $188 million, up 12.4% year over year due to strong international sales and significant project business. Sales in the North America were comparable year over year.
Financial Position
Valmont ended first-quarter 2018 with cash balance of $479.7 million, up roughly 12.8% year over year. Long-term debt at the end of the quarter was $753.6 million, down around 0.1% year over year.
Outlook
The company has increased its adjusted earnings per share guidance to a range of roughly $8.00-$8.10 per share that includes $10 million of restructuring charges.
For 2018, Valmont sees signs of stronger economic growth in many regions that is expected to contribute to favorable sales across most of its businesses. Although continued weakness in the U.S. farm economy continue to prevail and the uncertainty surrounding tariffs affect customer demand, the company's diversified base will help mitigate these impacts.
Price Performance
Valmont's shares have lost around 8.4% over the last three months, underperforming the industry 's 24.4% gain.
Zacks Rank & Stocks to Consider
Valmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industrial space are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar Inc. CAT .
Deere & Company has an expected long-term earnings growth rate of 5.67% and sports a Zacks Rank #1 (Strong Buy). The company's shares have moved up 38.4% in a year. You can see the complete list of today's Zacks #1 Rank stocks here .
H&E Equipment Services has an expected long-term earnings growth rate of 14.4% and flaunts a Zacks Rank #1. Its shares have gained 71.8% over a year.
Caterpillar has an expected long-term earnings growth rate of 12% and carries a Zacks Rank #2 (Buy). Its shares have moved up 66.8% in a 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
Caterpillar Inc. (CAT): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Valmont Industries, Inc. (VMI): 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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Some better-ranked stocks in the industrial space are Deere & Company DE , H&E Equipment Services, Inc. HEES and Caterpillar Inc. CAT . Deere & Company has an expected long-term earnings growth rate of 5.67% and sports a Zacks Rank #1 (Strong Buy). Valmont Industries, Inc.VMI reported a profit of roughly $39.3 million or $1.72 per share in first-quarter 2018, up 0.7% from net earnings of around $39 million or $1.72 recorded a year ago.
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Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Valmont Industries, Inc. (VMI): Free Stock Analysis Report To read this article on Zacks.com click here. Valmont Industries, Inc.VMI reported a profit of roughly $39.3 million or $1.72 per share in first-quarter 2018, up 0.7% from net earnings of around $39 million or $1.72 recorded a year ago. Utility Support Structures : Sales rose 4.8% year over year to $210 million on the back of utility investments in the North American grid to improve reliability and connectivity, and higher demand for renewable projects.
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Valmont Industries, Inc.VMI reported a profit of roughly $39.3 million or $1.72 per share in first-quarter 2018, up 0.7% from net earnings of around $39 million or $1.72 recorded a year ago. Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Valmont Industries, Inc. (VMI): Free Stock Analysis Report To read this article on Zacks.com click here. Utility Support Structures : Sales rose 4.8% year over year to $210 million on the back of utility investments in the North American grid to improve reliability and connectivity, and higher demand for renewable projects.
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Valmont Industries, Inc.VMI reported a profit of roughly $39.3 million or $1.72 per share in first-quarter 2018, up 0.7% from net earnings of around $39 million or $1.72 recorded a year ago. Utility Support Structures : Sales rose 4.8% year over year to $210 million on the back of utility investments in the North American grid to improve reliability and connectivity, and higher demand for renewable projects. Coatings : This segment recorded year-over-year net sales growth of 15.5% to $84.9 million.
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722041.0
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2018-04-12 00:00:00 UTC
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Notable Thursday Option Activity: GOOG, FB, DE
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DE
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https://www.nasdaq.com/articles/notable-thursday-option-activity-goog-fb-de-2018-04-12
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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 Alphabet Inc (Symbol: GOOG), where a total of 15,517 contracts have traded so far, representing approximately 1.6 million underlying shares. That amounts to about 69.4% of GOOG's average daily trading volume over the past month of 2.2 million shares. Particularly high volume was seen for the $1050 strike call option expiring April 13, 2018 , with 420 contracts trading so far today, representing approximately 42,000 underlying shares of GOOG. Below is a chart showing GOOG's trailing twelve month trading history, with the $1050 strike highlighted in orange:
Facebook Inc (Symbol: FB) options are showing a volume of 411,008 contracts thus far today. That number of contracts represents approximately 41.1 million underlying shares, working out to a sizeable 68.8% of FB's average daily trading volume over the past month, of 59.7 million shares. Particularly high volume was seen for the $165 strike call option expiring April 13, 2018 , with 33,873 contracts trading so far today, representing approximately 3.4 million underlying shares of FB. Below is a chart showing FB's trailing twelve month trading history, with the $165 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 18,802 contracts, representing approximately 1.9 million underlying shares or approximately 67.2% of DE's average daily trading volume over the past month, of 2.8 million shares. Especially high volume was seen for the $150 strike put option expiring April 20, 2018 , with 1,102 contracts trading so far today, representing approximately 110,200 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 GOOG options , FB 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 $1050 strike call option expiring April 13, 2018 , with 420 contracts trading so far today, representing approximately 42,000 underlying shares of GOOG. Particularly high volume was seen for the $165 strike call option expiring April 13, 2018 , with 33,873 contracts trading so far today, representing approximately 3.4 million underlying shares of FB. Especially high volume was seen for the $150 strike put option expiring April 20, 2018 , with 1,102 contracts trading so far today, representing approximately 110,200 underlying shares of DE.
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Particularly high volume was seen for the $165 strike call option expiring April 13, 2018 , with 33,873 contracts trading so far today, representing approximately 3.4 million underlying shares of FB. Below is a chart showing FB's trailing twelve month trading history, with the $165 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 18,802 contracts, representing approximately 1.9 million underlying shares or approximately 67.2% of DE's average daily trading volume over the past month, of 2.8 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alphabet Inc (Symbol: GOOG), where a total of 15,517 contracts have traded so far, representing approximately 1.6 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alphabet Inc (Symbol: GOOG), where a total of 15,517 contracts have traded so far, representing approximately 1.6 million underlying shares. Particularly high volume was seen for the $165 strike call option expiring April 13, 2018 , with 33,873 contracts trading so far today, representing approximately 3.4 million underlying shares of FB. Below is a chart showing FB's trailing twelve month trading history, with the $165 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 18,802 contracts, representing approximately 1.9 million underlying shares or approximately 67.2% of DE's average daily trading volume over the past month, of 2.8 million shares.
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Particularly high volume was seen for the $1050 strike call option expiring April 13, 2018 , with 420 contracts trading so far today, representing approximately 42,000 underlying shares of GOOG. Particularly high volume was seen for the $165 strike call option expiring April 13, 2018 , with 33,873 contracts trading so far today, representing approximately 3.4 million underlying shares of FB. Below is a chart showing FB's trailing twelve month trading history, with the $165 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 18,802 contracts, representing approximately 1.9 million underlying shares or approximately 67.2% of DE's average daily trading volume over the past month, of 2.8 million shares.
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8bc42923-aaad-4f56-a297-06a25f4ae3a7
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722042.0
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2018-04-12 00:00:00 UTC
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Thursday Sector Leaders: Industrial, Technology & Communications
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DE
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https://www.nasdaq.com/articles/thursday-sector-leaders-industrial-technology-communications-2018-04-12
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In afternoon trading on Thursday, Industrial stocks are the best performing sector, higher by 1.2%. Within that group, Deere & Co. (Symbol: DE) and Delta Air Lines Inc (Symbol: DAL) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is up 1.5% on the day, and down 1.54% year-to-date. Deere & Co., meanwhile, is down 3.93% year-to-date, and Delta Air Lines Inc , is down 4.24% year-to-date. Combined, DE and DAL make up approximately 3.6% of the underlying holdings of XLI.
The next best performing sector is the Technology & Communications sector, higher by 1.1%. Among large Technology & Communications stocks, Micron Technology Inc. (Symbol: MU) and Intel Corp (Symbol: INTC) are the most notable, showing a gain of 3.7% and 3.0%, respectively. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF ( XLK ), which is up 1.1% in midday trading, and up 4.27% on a year-to-date basis. Micron Technology Inc., meanwhile, is up 27.29% year-to-date, and Intel Corp is up 14.68% year-to-date. Combined, MU and INTC make up approximately 5.0% of the underlying holdings of XLK.
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 Thursday. As you can see, seven sectors are up on the day, while one sector is 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 DAL make up approximately 3.6% of the underlying holdings of XLI. Within that group, Deere & Co. (Symbol: DE) and Delta Air Lines Inc (Symbol: DAL) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Deere & Co., meanwhile, is down 3.93% year-to-date, and Delta Air Lines Inc , is down 4.24% year-to-date.
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Within that group, Deere & Co. (Symbol: DE) and Delta Air Lines Inc (Symbol: DAL) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Deere & Co., meanwhile, is down 3.93% year-to-date, and Delta Air Lines Inc , is down 4.24% year-to-date. Combined, DE and DAL make up approximately 3.6% of the underlying holdings of XLI.
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Within that group, Deere & Co. (Symbol: DE) and Delta Air Lines Inc (Symbol: DAL) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Deere & Co., meanwhile, is down 3.93% year-to-date, and Delta Air Lines Inc , is down 4.24% year-to-date. Combined, DE and DAL make up approximately 3.6% of the underlying holdings of XLI.
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Within that group, Deere & Co. (Symbol: DE) and Delta Air Lines Inc (Symbol: DAL) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Deere & Co., meanwhile, is down 3.93% year-to-date, and Delta Air Lines Inc , is down 4.24% year-to-date. Combined, DE and DAL make up approximately 3.6% of the underlying holdings of XLI.
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fbc7b739-9aa6-4ddb-84a2-97f2a70e5dc7
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722043.0
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2018-04-11 00:00:00 UTC
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Sonoco Teams Up With Cathay Pacific to Lease PharmaPort 360
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DE
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https://www.nasdaq.com/articles/sonoco-teams-up-with-cathay-pacific-to-lease-pharmaport-360-2018-04-11
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nan
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nan
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Sonoco Products CompanySON recently entered into a global partnership agreement with Cathay Pacific Cargo - one of the world's largest air cargo carriers. This deal will enable pharmaceutical shippers to lease Sonoco ThermoSafe's PharmaPort 360 temperature-controlled bulk shipping containers directly from Cathay Pacific Cargo.
Sonoco ThermoSafe - a unit of Sonoco - acquired PharmaPort 360 assets, licenses, trademarks and manufacturing rights from AAR Cold Chain Solutions in 2016. The PharmaPort 360 uses proprietary hybrid technology to ensure extremely precise +5C temperature control. The FAA (Federal Aviation Administration) approved containers are designed to safely ship temperature-sensitive pharmaceuticals, blood plasma, and other biological cargo via air or ground. The containers are also easy to use and versatile across transportation modes.
Per the deal, the PharmaPort 360 will provide active container solution to the impressive Pharma LIFT portfolio of Cathay Pacific Cargo. Its advanced remote monitoring and data logging through GPS Tracking and GSM Monitoring systems will also benefit Cathay Pacific by allowing 24/7 retrieval, analysis and sharing of system information.
Sonoco Products Company Price
Sonoco Products Company Price | Sonoco Products Company Quote
Moreover, Sonoco's reputation for quality products and high standards for service delivery has led the above-mentioned collaboration which will provide customers of Cathay Pacific a consistent solution for the transportation of vital and life-saving pharmaceutical products. On the other hand, the partnership will assist Sonoco's ThermoSafe business.
Notably, Sonoco remains aligned on implementing its Grow and Optimize strategy in 2018. The company will continue to focus on optimizing businesses through process improvement, standardization, cost control and commercial excellence. Its focus on thermoformed plastics, flexible packaging and consolidating industrial opportunities, particularly in emerging markets will drive growth.
Sonoco will also benefit from elevated demand in automotive business, continued strong performance of the consumer business and rebound in the ThermoSafe side. ThermoSafe provides temperature-assured packaging. The company expects the business to pickup in 2018.
Share Price Performance
Over the past year, Sonoco has underperformed the industry it belongs to, partly due to decline in consumer packaging volumes stemming from change in consumer preference for more fresh and natural products compared to packaged food. Sonoco's shares have slipped 6%, while the industry recorded growth of 9%.
Zacks Rank & Stocks to Consider
Sonoco carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are AptarGroup, Inc. ATR , Deere & Company DE and Dover Corporation DOV . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
AptarGroup has an expected long-term earnings growth rate of 8.5%. The company's shares have moved up 20.5% in the past year.
Deere has an expected long-term earnings growth rate of 5.7%. The stock has gained 33% in a year's time.
Dover has a long-term earnings growth rate of 13%. The company's shares have rallied 33% during the same time frame.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
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
Sonoco Products Company (SON): Free Stock Analysis Report
AptarGroup, Inc. (ATR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): 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 deal will enable pharmaceutical shippers to lease Sonoco ThermoSafe's PharmaPort 360 temperature-controlled bulk shipping containers directly from Cathay Pacific Cargo. The FAA (Federal Aviation Administration) approved containers are designed to safely ship temperature-sensitive pharmaceuticals, blood plasma, and other biological cargo via air or ground. Per the deal, the PharmaPort 360 will provide active container solution to the impressive Pharma LIFT portfolio of Cathay Pacific Cargo.
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Sonoco Products Company Price Sonoco Products Company Price | Sonoco Products Company Quote Moreover, Sonoco's reputation for quality products and high standards for service delivery has led the above-mentioned collaboration which will provide customers of Cathay Pacific a consistent solution for the transportation of vital and life-saving pharmaceutical products. Some better-ranked stocks in the same sector are AptarGroup, Inc. ATR , Deere & Company DE and Dover Corporation DOV . Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report To read this article on Zacks.com click here.
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Sonoco Products Company Price Sonoco Products Company Price | Sonoco Products Company Quote Moreover, Sonoco's reputation for quality products and high standards for service delivery has led the above-mentioned collaboration which will provide customers of Cathay Pacific a consistent solution for the transportation of vital and life-saving pharmaceutical products. Share Price Performance Over the past year, Sonoco has underperformed the industry it belongs to, partly due to decline in consumer packaging volumes stemming from change in consumer preference for more fresh and natural products compared to packaged food. Click to get this free report Sonoco Products Company (SON): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report To read this article on Zacks.com click here.
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Sonoco's shares have slipped 6%, while the industry recorded growth of 9%. This deal will enable pharmaceutical shippers to lease Sonoco ThermoSafe's PharmaPort 360 temperature-controlled bulk shipping containers directly from Cathay Pacific Cargo. Sonoco ThermoSafe - a unit of Sonoco - acquired PharmaPort 360 assets, licenses, trademarks and manufacturing rights from AAR Cold Chain Solutions in 2016.
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438752c1-edd0-4f19-9160-d0e818e8db6e
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722044.0
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2018-04-10 00:00:00 UTC
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Notable ETF Outflow Detected - EXI, UPS, FDX, DE
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DE
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https://www.nasdaq.com/articles/notable-etf-outflow-detected-exi-ups-fdx-de-2018-04-10
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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 Global Industrials ETF (Symbol: EXI) where we have detected an approximate $99.1 million dollar outflow -- that's a 27.8% decrease week over week (from 3,950,000 to 2,850,000). Among the largest underlying components of EXI, in trading today United Parcel Service Inc (Symbol: UPS) is up about 1.8%, FedEx Corp (Symbol: FDX) is up about 2.1%, and Deere & Co. (Symbol: DE) is higher by about 3.1%. For a complete list of holdings, visit the EXI Holdings page » The chart below shows the one year price performance of EXI, versus its 200 day moving average:
Looking at the chart above, EXI's low point in its 52 week range is $79.665 per share, with $100.275 as the 52 week high point - that compares with a last trade of $91.35. 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 EXI Holdings page » The chart below shows the one year price performance of EXI, versus its 200 day moving average: Looking at the chart above, EXI's low point in its 52 week range is $79.665 per share, with $100.275 as the 52 week high point - that compares with a last trade of $91.35. 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 EXI Holdings page » The chart below shows the one year price performance of EXI, versus its 200 day moving average: Looking at the chart above, EXI's low point in its 52 week range is $79.665 per share, with $100.275 as the 52 week high point - that compares with a last trade of $91.35. 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 Global Industrials ETF (Symbol: EXI) where we have detected an approximate $99.1 million dollar outflow -- that's a 27.8% decrease week over week (from 3,950,000 to 2,850,000).
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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 Global Industrials ETF (Symbol: EXI) where we have detected an approximate $99.1 million dollar outflow -- that's a 27.8% decrease week over week (from 3,950,000 to 2,850,000). For a complete list of holdings, visit the EXI Holdings page » The chart below shows the one year price performance of EXI, versus its 200 day moving average: Looking at the chart above, EXI's low point in its 52 week range is $79.665 per share, with $100.275 as the 52 week high point - that compares with a last trade of $91.35. 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 EXI Holdings page » The chart below shows the one year price performance of EXI, versus its 200 day moving average: Looking at the chart above, EXI's low point in its 52 week range is $79.665 per share, with $100.275 as the 52 week high point - that compares with a last trade of $91.35. 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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d28cd0bf-c1af-4e89-8e61-3b119c6b6e0f
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722045.0
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2018-04-10 00:00:00 UTC
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Reasons that Make Deere (DE) a Solid Investment Choice Now
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DE
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https://www.nasdaq.com/articles/reasons-that-make-deere-de-a-solid-investment-choice-now-2018-04-10
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nan
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nan
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Deere & CompanyDE looks promising at the moment on the back of an upbeat outlook, strong order activity and its focus on acquisitions. Additionally, share price of this Zacks Rank #2 (Buy) stock has been rising, of late. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
If you haven't taken advantage of the share price appreciation yet, this is the right time to add the stock to your portfolio as it looks promising and is poised to carry the momentum ahead. The stock has an estimated long-term earnings growth rate of 5.7%.
Let's delve deeper and analyze the factors that make this agricultural-equipment maker an attractive investment option.
What's Working in Favor of Deere?
Positive Estimate Revisions, Growth Projections
The Zacks Consensus Estimate for 2018 and 2019 for Deere has been revised nearly 17% and around 14% upward, respectively, over the past 60 days. The Zacks Consensus Estimate for current-year earnings is pegged at $9.55, reflecting estimated year-over-year growth of 43%. The Zacks Consensus Estimate for 2019 earnings is pegged at $11.45, representing an estimated year-over-year rise of 19.9%.
Positive Earnings Surprise History
Deere has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of 17.3%.
Above the Industry
Deere has outperformed the industry it belongs to, in a year's time. The company's shares have jumped around 28.6% compared with 27.3% growth recorded by the industry during the same time frame.
Attractive Valuation
Going by the price earnings (P/E) multiple, Deere is currently trading at a trailing 12-month P/E multiple of 19.5x - lower than the industry average of 22.5x.
Superior Return on Assets (ROA)
Deere' ROA of 3.8%, as compared with the industry average of 3.5%, highlights the company's efficiency in generating earnings by effectively managing assets.
Upbeat Guidance
Deere raised its total equipment sales growth outlook for fiscal 2018 to around 29% year over year from the prior guidance of about 22%. For the fiscal, Deere expects net sales to be up about 25% year over year and projects net income of about $2.1 billion. The company is poised to gain from improved operational performance due to disciplined cost management, and continued investment in innovative technology and solutions.
Growth Drivers in Place
Deere estimates that industry sales for agricultural equipment in the United States and Canada will be up nearly 10% for fiscal 2018, aided by higher demand for large equipment. The company has been recording strong order activity in Combine Early Order Program and order book for large tractors, which supports the encouraging outlook.
Further, construction investment is predicted to be up around 2.2% in fiscal 2018, up from the previous forecast of 1.4%, driven by the pick up in oil and gas, and residential activity, strong order book and upbeat trends in retail sales.
Moreover, Deere's positive outlook for fiscal 2018 also reflects gains from the Wirtgen acquisition. In December 2017, the company acquired Wirtgen for $5.2 billion. The buyout will aid Deere's North America-centric construction business. Deere stated that the transaction will contribute roughly 12% to net sales for fiscal 2018 and around 16% for the fiscal second quarter.
Deere also recently entered into a definitive agreement to acquire King Agro, a privately-held manufacturer of carbon fiber technology products. Post acquisition, Deere's customers will benefit from King Agro's unique knowledge, designs, and expertise in carbon-fiber technology.
Other Stocks to Consider
Some other similarly-ranked stocks as Deere in the sector include AptarGroup, Inc. ATR , Barnes Group, Inc. B and Dover Corporation DOV .
AptarGroup has a long-term earnings growth rate of 8.5%. Its shares have rallied 17%, over the past year.
Barnes Group has a long-term earnings growth rate of 10%. The company's shares have been up 17% during the same time frame.
Dover has a long-term earnings growth rate of 13%. The stock has gained 15% in a year's time.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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
AptarGroup, Inc. (ATR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
Barnes Group, Inc. (B): 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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Further, construction investment is predicted to be up around 2.2% in fiscal 2018, up from the previous forecast of 1.4%, driven by the pick up in oil and gas, and residential activity, strong order book and upbeat trends in retail sales. Deere & CompanyDE looks promising at the moment on the back of an upbeat outlook, strong order activity and its focus on acquisitions. Let's delve deeper and analyze the factors that make this agricultural-equipment maker an attractive investment option.
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Positive Estimate Revisions, Growth Projections The Zacks Consensus Estimate for 2018 and 2019 for Deere has been revised nearly 17% and around 14% upward, respectively, over the past 60 days. Positive Earnings Surprise History Deere has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of 17.3%. Click to get this free report AptarGroup, Inc. (ATR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Barnes Group, Inc. (B): Free Stock Analysis Report To read this article on Zacks.com click here.
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Positive Estimate Revisions, Growth Projections The Zacks Consensus Estimate for 2018 and 2019 for Deere has been revised nearly 17% and around 14% upward, respectively, over the past 60 days. Positive Earnings Surprise History Deere has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of 17.3%. Click to get this free report AptarGroup, Inc. (ATR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Barnes Group, Inc. (B): Free Stock Analysis Report To read this article on Zacks.com click here.
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Above the Industry Deere has outperformed the industry it belongs to, in a year's time. Deere & CompanyDE looks promising at the moment on the back of an upbeat outlook, strong order activity and its focus on acquisitions. Let's delve deeper and analyze the factors that make this agricultural-equipment maker an attractive investment option.
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451ce42e-1876-4c6c-87f7-5410e67d1ce2
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722046.0
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2018-04-10 00:00:00 UTC
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Bemis to Grow on Agility Plan &Tax Reform, Headwinds Linger
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DE
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https://www.nasdaq.com/articles/bemis-to-grow-on-agility-plan-tax-reform-headwinds-linger-2018-04-10
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nan
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nan
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On Apr 9, we issued an updated research report on Bemis Company, Inc.BMS . The company is poised to gain from the U.S. tax reform, its initiatives to improve cost structure through the Agility plan, and focus on capital allocation. However, close of the infant care business, seasonal factors and challenging economic environment in Latin America are expected to dent the company's performance in the near future.
Let's illustrate the factors in detail.
U.S. Tax Reform to Drive Earnings
Bemis projects earnings per share in fiscal 2018 to be $2.75-$2.90. The range includes an expected 31-cent benefit related to the tax reform. Also, the mid-point of the range reflects an 18% year-over-year rise in earnings. The guidance also highlights the company's initiatives to improve cost structure through the Agility plan.
Bemis to Gain From Agility Plan
To fix, strengthen, and grow its business, Bemis rolled out an improvement plan - Agility - in fiscal 2017. The plan includes optimizing manufacturing capacity, consolidating office space, and reducing SG&A cost structure and other costs. It also includes simplification of product portfolio and organizational structure, rebalancing R&D efforts and deliberately pursuing targeted areas of growth in the North American business. These actions will lay the foundation for future growth.
Of the targeted pretax annual savings of $65 million, according to the plan, $4.1 million was realized in fiscal 2017. In fiscal 2018, Bemis anticipates to realize roughly $35 million of benefit.
Focus on Capital Allocation to Aid Performance
Bemis expects capital expenditures for fiscal 2018 to be between $156 million and $160 million. Of this, about $55 million is for environmental matters, health and safety at plants, and around $100 million is targeted for select growth projects and asset-recapitalization projects. During fiscal 2017, the company repurchased 2.2 million shares for $103.8 million. It recently approved a 3.3% increase in the quarterly cash dividend to 31 cents per share. Thus, Bemis remains committed to maintain a strong balance sheet and returning free cash flow to shareholders.
Close of Infant Care Business a Concern
Bemis was unable to contractually re-secure an important business related to infant care packaging produced at its Shelbyville, TN facility. The company expects that assets at this facility could not be redeployed and therefore it intends to close the facility in fiscal 2018. The base profit related to this infant care business was around $6 million annually. Thus, lack of profit from this business will impact the company.
Impact of Seasonality
Bemis expects that earnings in first-quarter fiscal 2018 will be in line with first-quarter fiscal 2017. Results in the quarter will be affected by seasonal factors.
Latin America Remains a Woe
Bemis' operating profit in Latin America was significantly down during fourth-quarter fiscal 2017 as compared to the prior fiscal quarter, driven by the prevalent challenging economic environment in Brazil. In Latin America, the company expects volumes to remain relatively flat in fiscal 2018 as compared to fiscal 2017, as the economic environment has not yet recovered to the anticipated level.
Share Price Performance
Bemis has underperformed its industry with respect to price performance over the past year. The stock has lost around 9.5%, while the industry has recorded growth of 7.6% during the same time frame.
Zacks Rank & Stocks to Consider
Bemis currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include AptarGroup, Inc. ATR , Barnes Group, Inc. B and Deere & Company DE . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
AptarGroup has a long-term earnings growth rate of 8.5%. Its shares have rallied 17%, over the past year.
Barnes Group has a long-term earnings growth rate of 10%. The company's shares have been up 17% over a year.
Deere has a long-term earnings growth rate of 5.7%. The stock has gained 29% in a year's time.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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
Bemis Company, Inc. (BMS): Free Stock Analysis Report
AptarGroup, Inc. (ATR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Barnes Group, Inc. (B): 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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However, close of the infant care business, seasonal factors and challenging economic environment in Latin America are expected to dent the company's performance in the near future. It also includes simplification of product portfolio and organizational structure, rebalancing R&D efforts and deliberately pursuing targeted areas of growth in the North American business. Let's illustrate the factors in detail.
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However, close of the infant care business, seasonal factors and challenging economic environment in Latin America are expected to dent the company's performance in the near future. Click to get this free report Bemis Company, Inc. (BMS): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Barnes Group, Inc. (B): Free Stock Analysis Report To read this article on Zacks.com click here. Let's illustrate the factors in detail.
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Click to get this free report Bemis Company, Inc. (BMS): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Barnes Group, Inc. (B): Free Stock Analysis Report To read this article on Zacks.com click here. However, close of the infant care business, seasonal factors and challenging economic environment in Latin America are expected to dent the company's performance in the near future. Let's illustrate the factors in detail.
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However, close of the infant care business, seasonal factors and challenging economic environment in Latin America are expected to dent the company's performance in the near future. Let's illustrate the factors in detail. The range includes an expected 31-cent benefit related to the tax reform.
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d78e804e-049f-4df8-b1f4-c0e87a02e39f
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722047.0
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2018-04-09 00:00:00 UTC
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Option traders bet on Deere
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DE
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https://www.nasdaq.com/articles/option-traders-bet-deere-2018-04-09
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nan
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nan
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Traders are looking Monday for a rise in shares of Deere & Co. ( DE ). So far, 2,327 contracts of the July 150 call have changed hands, against open interest of 100 contracts. Pricing on today's volume has been high, indicating that these new contracts are being initiated from the buy side.
InvestorsKeyhole Trade Alert
IK-> The technicals for DE ($145.87 up $.49) are bearish with a downward trend. The stock has support about $145.40. Look at the May 120/125 bull-put spread for a 40-cent credit. That's an 8.7% return and the stock has to fall by 14.3% 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 looking Monday for a rise in shares of Deere & Co. ( DE ). Pricing on today's volume has been high, indicating that these new contracts are being initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($145.87 up $.49) are bearish with a downward trend.
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Traders are looking Monday for a rise in shares of Deere & Co. ( DE ). Pricing on today's volume has been high, indicating that these new contracts are being initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($145.87 up $.49) are bearish with a downward trend.
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Traders are looking Monday for a rise in shares of Deere & Co. ( DE ). Pricing on today's volume has been high, indicating that these new contracts are being initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($145.87 up $.49) are bearish with a downward trend.
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Traders are looking Monday for a rise in shares of Deere & Co. ( DE ). Pricing on today's volume has been high, indicating that these new contracts are being initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($145.87 up $.49) are bearish with a downward trend.
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2530b13d-28f5-4ca3-9f5e-2d938fbe2d99
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722048.0
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2018-04-05 00:00:00 UTC
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Zacks Industry Outlook Highlights: Caterpillar, ABB, Illinois Tool Works, Deere and Stanley Black & Decker
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DE
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-caterpillar-abb-illinois-tool-works-deere-and-stanley
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nan
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nan
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For Immediate Release
Chicago, IL - April 5, 2018 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar Inc. CAT , ABB Ltd. ABB , Illinois Tool Works Inc. ITW , Deere & Company DE and Stanley Black & Decker, Inc. SWK .
Industry: Industrial Machinery
Link: https://www.zacks.com/commentary/156370/industrial-machinery-stock-outlook---april-2018
Accelerating growth of the global economy, from 3.2% in 2016 to 3.7% in 2017, had been a propeller for many countries, both advanced and emerging, including the United States. Over the two years (2016-2017), the country's major stock indexes - S&P 500, Dow Jones Industrial Average and Nasdaq - have surged 30.8%, 41.9% and 37.9%, respectively. Its Gross Domestic Product (GDP) expanded roughly 1.5% in 2016 and 2.3% in 2017.
The International Monetary Fund's (IMF) growth projections are also encouraging. In its January 2018 report, the IMF predicted that the global output will expand 3.9% in both 2018 and 2019. The U.S. economy is projected to grow 2.7% in 2018 and 2.5% in 2019. These estimates reflect an improvement of 0.4% for 2018 and 0.6% for 2019 from its earlier growth forecasts.
Our in-house projections indicate roughly 18% growth in earnings and a 5.6% increase in revenues for the S&P 500 companies in 2018. The earnings projection compares favorably with a growth rate of 9.7% recorded in 2017.
We believe that advancement in the global economy and a strengthening domestic market will prove beneficial for demand of industrial machinery. Technological advancement in agriculture and mining industries will require upgraded farming and mining machineries, while growth in demand for packaged foods and beverages across nations will raise need for highly sophisticated food processing and packaging equipment. Further, the need for better infrastructure and residential and non-residential spaces will raise the demand for heavy construction machinery.
Industrial production is one of the leading economic indicators for industrial machinery stocks. It measures the level of output of manufacturing, mining and utilities sectors in a country. A brief discussion on the machinery industry in different nations is given below.
Industrial Machinery by Nation
The United States: Many factors are currently working in favor of industrial machinery companies here. Encouraging job data, with an unemployment rate of 4.1% in February versus 4.7% in the year-ago month, infrastructural improvement plans of the government and strengthening housing markets are some tailwinds.
Some other key economic indicators are pointing toward healthy operating conditions in the industry. The country's industrial production grew 4.4% year over year in February. This marked the highest increase on a year-over-year basis since March 2011. Mining sector expanded 9.7%, utilities 10.5% and manufacturing 2.5%.
Also, new orders for U.S.-manufactured machinery in January 2018 grew 11.4% year over year while the ISM Purchasing Managers' Index or manufacturing index for February expanded 1.7 percentage points from the previous month. The improvement in the ISM Purchasing Managers' Index suggests expanding economic activities in the manufacturing sector - the key highlights being healthier business conditions, favorable export orders and production, solid backlog and employment growth.
Also, the implementation of the Tax Cut and Jobs Act in December 2017 lowered taxes for many corporations, enabling them to invest the free resources in growth projects. However, the government's tariff imposition on import of steel and aluminum jolted the market somewhat, with fears of possible increase in competitive threats from international players, hike in production costs and retaliatory measures by affected nations.
Japan: The country's economy is still struggling with internal issues, including an aging population and a huge public debt. However, strengthening exports driven by a rise in automobile shipments, improvements in domestic demand induced by healthy growth in private investments and improving employment and wage rates will be beneficial. The country's GDP grew 1.5% year over year in the fourth quarter of 2017 while registering a 0.5% rise over the previous quarter.
According to the report from Japan's Cabinet Office, core machinery orders (an indicator of capital spending by companies in the next six to nine months)increased 8.2% in January 2018. However, this is predicted to decline 1.5% in the first quarter of 2018 while total machinery orders are predicted to fall 6.9%.
The IMF increased its growth projection for the country by 50 basis points (bps) to 1.2% for 2018 and by 10 bps to 0.9% for 2019.
China: China's GDP grew 6.8% year over year in the fourth quarter of 2017 while it expanded 6.9% in 2017, higher than the government's target of 6.5%. Healthy export demand, flexible property market and rising manufacturing activities were the prime growth drivers.
The country's industrial production improved 7.2% year over year in both January and February 2018. Electricity, gas and water production as well as manufacturing sectors flourished while the mining recovered during the period.
For 2018, the government of China anticipates economy to grow roughly 6.5%. We believe that robust investment for the development of infrastructure and transportation will boost the economy and spur demand for industrial machinery. Also, the country's efforts to lower its debt burden will be advantageous. However, the possibilities of a trade war with the United States, triggered by its imposition of tariffs on steel and aluminum, might be a concerning factor for the both the countries' trade relations.
The IMF projects economy of China to grow 6.6% in 2018 and 6.4% in 2019, up roughly 10 bps from the respective previous estimates.
India: The country's major economic decisions - including demonetization and goods and services tax - along with other strategies to make the country a prime manufacturing hub for all nations across the world are expected to drive its economic growth. Also, favorable domestic job market, low interest rates allowing easy accessibility to cheap loans, infrastructure investments, healthy export demand and better monsoon conditions are additional factors that can make the country a favorable investment destination.
The country's industrial production grew 7.5% year over year in January 2018 versus a 7.1% gain recorded in December. Manufacturing output expanded 8.7%, electricity production jumped 7.6% while mere 0.1% growth was registered in mining.
According to the IMF, the country is projected to grow 7.4% in 2018 and 7.8% in 2019.
Brazil: The country is grappling with uncertainties on the political front that has over time adversely affected the country's growth opportunities. General elections are due this October with high probability of abandoned initiatives to reform the country's pension system becoming a major topic of discussion. Moreover, inadequate infrastructure and a still high unemployment rate of 12.6% (in three months ended February 2018) are other major hurdles.
Partially negating these, growth in export demand, strengthening spending in the housing markets and rise in consumer confidence are currently strengthening hopes of a turnaround in the Brazilian economy. Also, falling inflation has prompted the country's Central Bank to ease interest rates. Notably, the interest rate has been lowered 25 bps in March 2018, this being its 10th consecutive rate cut since 2017. The country's GDP in 2017 grew 1% after 3.5% decline in both 2015 and 2016 and is predicted to grow 3% in 2018.
In addition, the country's industrial production has been encouraging, with year-over-year growth of 5.7% recorded for January 2018. This compares favorably with 4.5% growth in December 2017 and 4.7% in November 2017.
The IMF expects the country's output to grow 1.9% in 2018, reflecting a 40 bps increase from the previous forecast. Also, growth projections for 2019 have been increased 10 bps to 2.1%.
Eurozone: The region, amidst all the political uncertainties, is showing improvements in export demand and labor markets. The region's GDP improved 2.7% year over year in fourth-quarter 2017 while advanced 2.3% in 2017. Industrial production improved 2.7% year over year in January 2018.
The unemployment rate was 8.6% in January 2018, down from 9.6% in the year-ago month but stable compared with December.
The IMF raised output growth estimates by 30 bps both for 2018 and 2019 to 2.2% and 2%, respectively.
Sector and Industry Ranking
Industrial machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. It currently occupies the second position in the Zacks sectors list.
Of the 265 industries comprising the Zacks sectors, those in the top half (i.e., industries with the best average Zacks Rank) have higher chances of beating the bottom half (i.e., the industries with the worst average Zacks Rank). (To learn more visit: About Zacks Industry Rank )
We believe that investors keen on exposure to industrial machinery companies have reasons to rejoice. Machinery industries with their positions are as follows: electrical products is in the top 2% of the 265 industries while construction and mining equipment is in the top 6%, farm equipment in the top 36% and thermal products in the top 49%.
Also, companies dealing in electronics are in the top 15%, material handling products in the top 5%, industrial tools and providing related services is in the top 29% and companies serving general industrial purposes are in the 42%. However, companies dealing in printing equipment for industrial use are in the bottom half at 95%.
Performance and Earnings Trend of the Sector
In the past five years, the Industrial Products sector has yielded a solid 35.4% return.
In the fourth quarter of 2017, earnings of Industrial Products grew 34.8% year over year, while revenues improved 14.5%. The earnings and sales growth was above 19.6% growth in earnings and 4.8% rise in revenues in the third quarter.
Our in-house projections, published in the Earnings Trends report dated Mar 23, indicate roughly 19.6% growth in earnings and 8.2% increase in revenues of Industrial Products sector in 2018. Margins are likely to expand roughly 1%. Growth for earnings and margins is higher than 18.7% and 0.46%, respectively, recorded in 2017, while that for revenues is below 2017-figure of 12.9%.
In the next three to five years, earnings of the Industrial Products sector are projected to grow 10.7%.
Our Take
I nternal requirements as well as export orders play a key role in determining the demand for industrial machineries in any country. We believe that efforts to improve trade relations across nations will be a boon for machinery companies. Also, increase in infrastructural investments, job creation and high consumer-end demand will help in further accelerating growth.
It will be interesting to watch the activities of industrial machinery companies, with at least $20 billion market capitalization, including Caterpillar Inc., ABB Ltd., Illinois Tool Works Inc., Deere & Company and Stanley Black & Decker, Inc.
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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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ABB Ltd (ABB): Free Stock Analysis Report
Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Illinois Tool Works Inc. (ITW): 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 improvement in the ISM Purchasing Managers' Index suggests expanding economic activities in the manufacturing sector - the key highlights being healthier business conditions, favorable export orders and production, solid backlog and employment growth. For Immediate Release Chicago, IL - April 5, 2018 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar Inc. CAT , ABB Ltd. ABB , Illinois Tool Works Inc. ITW , Deere & Company DE and Stanley Black & Decker, Inc. SWK . Over the two years (2016-2017), the country's major stock indexes - S&P 500, Dow Jones Industrial Average and Nasdaq - have surged 30.8%, 41.9% and 37.9%, respectively.
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For Immediate Release Chicago, IL - April 5, 2018 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar Inc. CAT , ABB Ltd. ABB , Illinois Tool Works Inc. ITW , Deere & Company DE and Stanley Black & Decker, Inc. SWK . It will be interesting to watch the activities of industrial machinery companies, with at least $20 billion market capitalization, including Caterpillar Inc., ABB Ltd., Illinois Tool Works Inc., Deere & Company and Stanley Black & Decker, Inc. Click to get this free report ABB Ltd (ABB): Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report To read this article on Zacks.com click here.
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Sector and Industry Ranking Industrial machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. For Immediate Release Chicago, IL - April 5, 2018 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar Inc. CAT , ABB Ltd. ABB , Illinois Tool Works Inc. ITW , Deere & Company DE and Stanley Black & Decker, Inc. SWK . Over the two years (2016-2017), the country's major stock indexes - S&P 500, Dow Jones Industrial Average and Nasdaq - have surged 30.8%, 41.9% and 37.9%, respectively.
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Performance and Earnings Trend of the Sector In the past five years, the Industrial Products sector has yielded a solid 35.4% return. For Immediate Release Chicago, IL - April 5, 2018 - Today, Zacks Equity Research discusses the Industry: Industrial Machinery, including Caterpillar Inc. CAT , ABB Ltd. ABB , Illinois Tool Works Inc. ITW , Deere & Company DE and Stanley Black & Decker, Inc. SWK . Over the two years (2016-2017), the country's major stock indexes - S&P 500, Dow Jones Industrial Average and Nasdaq - have surged 30.8%, 41.9% and 37.9%, respectively.
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f9bdc55d-9d21-4126-87a7-f0a3ac419b69
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722049.0
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2018-04-05 00:00:00 UTC
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Bulls bet on Deere to jump
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DE
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https://www.nasdaq.com/articles/bulls-bet-deere-jump-2018-04-05
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nan
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nan
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Option traders are putting together a position on Deere & Co. ( DE ) Thursday. So far, 4,707 contracts of the Sept. 160 call changed hands, against open interest of 284 contracts. The bulk of today's volume was in a single trade at 10:34 this morning, which moved in the high half of the spread, indicating that it was likely initiated from the buy side.
InvestorsKeyhole Trade Alert
IK-> The technicals for DE ($151.11 up $2.60) are bearish with a downward trend. The stock has support about $145. Look at the May 125/130 bull-put spread for a 40-cent credit. That's an 8.7% return and the stock has to fall by 14.0% 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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Option traders are putting together a position on Deere & Co. ( DE ) Thursday. The bulk of today's volume was in a single trade at 10:34 this morning, which moved in the high half of the spread, indicating that it was likely initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($151.11 up $2.60) are bearish with a downward trend.
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InvestorsKeyhole Trade Alert IK-> The technicals for DE ($151.11 up $2.60) are bearish with a downward trend. Option traders are putting together a position on Deere & Co. ( DE ) Thursday. The bulk of today's volume was in a single trade at 10:34 this morning, which moved in the high half of the spread, indicating that it was likely initiated from the buy side.
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The bulk of today's volume was in a single trade at 10:34 this morning, which moved in the high half of the spread, indicating that it was likely initiated from the buy side. Option traders are putting together a position on Deere & Co. ( DE ) Thursday. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($151.11 up $2.60) are bearish with a downward trend.
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Option traders are putting together a position on Deere & Co. ( DE ) Thursday. The bulk of today's volume was in a single trade at 10:34 this morning, which moved in the high half of the spread, indicating that it was likely initiated from the buy side. InvestorsKeyhole Trade Alert IK-> The technicals for DE ($151.11 up $2.60) are bearish with a downward trend.
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03b86e38-43f1-48fe-b123-0fdc9e3d6bf8
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722050.0
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2018-04-04 00:00:00 UTC
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Why the Best Is Yet to Come for Caterpillar
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DE
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https://www.nasdaq.com/articles/why-best-yet-come-caterpillar-2018-04-04
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nan
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nan
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Investors in Caterpillar Inc. (NYSE: CAT) will need little reminding that, as I write, their stock is down around 6.5% on a year-to-date basis. Given such a price move, it's a good idea to take a step back and examine whether the underlying fundamentals have gotten better or worse for the company. I think they've improved, and the recent move lower is making the stock more attractive. Here's why.
Commodity prices and interest rates
There's little doubt that rising interest rates cause concern for equity investors -- higher interest rates make bonds relatively more attractive when compared to equities. For example, the U.S. 10-year Treasury yield was at 1.5% just last year but now stands at around 2.7%. Moreover, the Federal Reserve target funds rate has risen to 1.75% from 0.25% in 2015, and most investors are expecting more rate hikes to come, so there is definitely pressure on equities.
While this is not the place for an equity vs. bonds discussion, it's worth pointing out two factors that mean Caterpillar can do relatively well in this environment:
Rising rates are usually in response to accelerating economic growth and go hand in hand with inflationary pressure. This is not necessarily bad news for cyclical companies like Caterpillar, especially for its construction-related sales.
Much of the inflationary pressure has come from commodity prices, and rising oil and mining metal prices are good news for the company.
As you can see below, Caterpillar's key commodity prices continue to move in the right direction.
Iron Ore Spot Price (Any Origin) data by YCharts .
The beginning of an extended up cycle in mining capital spending?
Caterpillar's resources industries segment (mining) is probably the key swing factor for its earnings in the next few years. As you can see above, underlying mining metals prices are moving in the right direction, and the major mining companies expect their spending outlook to improve.
Here's a look at four of the largest mining companies and their capital expenditure plans for 2018. The total of their planned expenditures for 2018 is around $21 billion, representing a near 20% increase over 2017. If mining metal prices continue to increase, then you can expect more growth in the coming years.
Construction machinery outlook
Caterpillar's construction industries segment provided the majority of the company's profit increase in 2017, and the outlook for the industry is improving in 2018. Indeed, a look at Caterpillar's peer, Deere & Company (NYSE: DE) , only serves to confirm this idea. While Deere is more of an agricultural equipment company, its construction and forestry segment outlook is highly relevant to Caterpillar. The good news is it looks set for a hefty increase in sales and profit in its fiscal 2018.
For example, in its first-quarter 2018 earnings release in mid-February, Deere's management raised its full-year 2018 net sales growth forecast for its construction and forestry segment to 22% compared to a previous forecast of 14% (both figures exclude acquisitions and foreign exchange). Moreover, Deere increased its forecast for housing starts and total construction investment in the U.S. --both very good signs for Caterpillar. Deere is an attractive company in its own right , but its construction outlook is also good news for Caterpillar.
Caterpillar retail sales
The themes discussed above are all borne out when looking at Caterpillar's retail sales figures. As you can see below, resource industries sales are finally catching up with construction industries sales.
What it means for Caterpillar investors
No one likes buying a cyclical company at the peak of its cyclical growth, particularly when interest rates are rising. However, Caterpillar's upcycle appears poised to continue, not least from an improving outlook for U.S. construction spending and rising commodity prices. Meanwhile, if the cause of rising interest rates is mostly related to raw material price increases such as oil & mining commodities -- end markets that Caterpillar has heavy exposure too -- then it's reasonable to argue that Caterpillar is a net winner in this environment. All told, Caterpillar's outlook appears to be improving.
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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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While Deere is more of an agricultural equipment company, its construction and forestry segment outlook is highly relevant to Caterpillar. Moreover, Deere increased its forecast for housing starts and total construction investment in the U.S. --both very good signs for Caterpillar. Given such a price move, it's a good idea to take a step back and examine whether the underlying fundamentals have gotten better or worse for the company.
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As you can see above, underlying mining metals prices are moving in the right direction, and the major mining companies expect their spending outlook to improve. Given such a price move, it's a good idea to take a step back and examine whether the underlying fundamentals have gotten better or worse for the company. Moreover, the Federal Reserve target funds rate has risen to 1.75% from 0.25% in 2015, and most investors are expecting more rate hikes to come, so there is definitely pressure on equities.
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Construction machinery outlook Caterpillar's construction industries segment provided the majority of the company's profit increase in 2017, and the outlook for the industry is improving in 2018. Given such a price move, it's a good idea to take a step back and examine whether the underlying fundamentals have gotten better or worse for the company. Moreover, the Federal Reserve target funds rate has risen to 1.75% from 0.25% in 2015, and most investors are expecting more rate hikes to come, so there is definitely pressure on equities.
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As you can see above, underlying mining metals prices are moving in the right direction, and the major mining companies expect their spending outlook to improve. Deere is an attractive company in its own right , but its construction outlook is also good news for Caterpillar. Given such a price move, it's a good idea to take a step back and examine whether the underlying fundamentals have gotten better or worse for the company.
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4727110e-39eb-4148-85f0-fcd3c8af917f
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722051.0
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2018-04-04 00:00:00 UTC
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Industrial Machinery Stock Outlook - April 2018
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DE
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https://www.nasdaq.com/articles/industrial-machinery-stock-outlook-april-2018-2018-04-04
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nan
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nan
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Accelerating growth of the global economy, from 3.2% in 2016 to 3.7% in 2017, had been a propeller for many countries, both advanced and emerging, including the United States. Over the two years (2016-2017), the country's major stock indexes - S&P 500, Dow Jones Industrial Average and Nasdaq - have surged 30.8%, 41.9% and 37.9%, respectively. Its Gross Domestic Product (GDP) expanded roughly 1.5% in 2016 and 2.3% in 2017.
The International Monetary Fund's (IMF) growth projections are also encouraging. In its January 2018 report, the IMF predicted that the global output will expand 3.9% in both 2018 and 2019. The U.S. economy is projected to grow 2.7% in 2018 and 2.5% in 2019. These estimates reflect an improvement of 0.4% for 2018 and 0.6% for 2019 from its earlier growth forecasts.
Our in-house projections indicate roughly 18% growth in earnings and a 5.6% increase in revenues for the S&P 500 companies in 2018. The earnings projection compares favorably with a growth rate of 9.7% recorded in 2017.
We believe that advancement in the global economy and a strengthening domestic market will prove beneficial for demand of industrial machinery. Technological advancement in agriculture and mining industries will require upgraded farming and mining machineries, while growth in demand for packaged foods and beverages across nations will raise need for highly sophisticated food processing and packaging equipment. Further, the need for better infrastructure and residential and non-residential spaces will raise the demand for heavy construction machinery.
Industrial production is one of the leading economic indicators for industrial machinery stocks. It measures the level of output of manufacturing, mining and utilities sectors in a country. A brief discussion on the machinery industry in different nations is given below.
Industrial Machinery by Nation
The United States: Many factors are currently working in favor of industrial machinery companies here. Encouraging job data, with an unemployment rate of 4.1% in February versus 4.7% in the year-ago month, infrastructural improvement plans of the government and strengthening housing markets are some tailwinds.
Some other key economic indicators are pointing toward healthy operating conditions in the industry. The country's industrial production grew 4.4% year over year in February. This marked the highest increase on a year-over-year basis since March 2011. Mining sector expanded 9.7%, utilities 10.5% and manufacturing 2.5%.
Also, new orders for U.S.-manufactured machinery in January 2018 grew 11.4% year over year while the ISM Purchasing Managers' Index or manufacturing index for February expanded 1.7 percentage points from the previous month. The improvement in the ISM Purchasing Managers' Index suggests expanding economic activities in the manufacturing sector - the key highlights being healthier business conditions, favorable export orders and production, solid backlog and employment growth.
Also, the implementation of the Tax Cut and Jobs Act in December 2017 lowered taxes for many corporations, enabling them to invest the free resources in growth projects. However, the government's tariff imposition on import of steel and aluminum jolted the market somewhat, with fears of possible increase in competitive threats from international players, hike in production costs and retaliatory measures by affected nations.
Japan: The country's economy is still struggling with internal issues, including an aging population and a huge public debt.However, strengthening exports driven by a rise in automobile shipments, improvements in domestic demand induced by healthy growth in private investments and improving employment and wage rates will be beneficial. The country's GDP grew 1.5% year over year in the fourth quarter of 2017 while registering a 0.5% rise over the previous quarter.
According to the report from Japan's Cabinet Office, core machinery orders ( an indicator of capital spending by companies in the next six to nine months ) increased 8.2% in January 2018. However, this is predicted to decline 1.5% in the first quarter of 2018 while total machinery orders are predicted to fall 6.9%.
The IMF increased its growth projection for the country by 50 basis points (bps) to 1.2% for 2018 and by 10 bps to 0.9% for 2019.
China: China's GDP grew 6.8% year over year in the fourth quarter of 2017 while it expanded 6.9% in 2017, higher than the government's target of 6.5%. Healthy export demand, flexible property market and rising manufacturing activities were the prime growth drivers.
The country's industrial production improved 7.2% year over year in both January and February 2018. Electricity, gas and water production as well as manufacturing sectors flourished while the mining recovered during the period.
For 2018, the government of China anticipates economy to grow roughly 6.5%. We believe that robust investment for the development of infrastructure and transportation will boost the economy and spur demand for industrial machinery. Also, the country's efforts to lower its debt burden will be advantageous. However, the possibilities of a trade war with the United States, triggered by its imposition of tariffs on steel and aluminium, might be a concerning factor for the both the countries' trade relations.
The IMF projects economy of China to grow 6.6% in 2018 and 6.4% in 2019, up roughly 10 bps from the respective previous estimates.
India: The country's major economic decisions - including demonetization and goods and services tax - along with other strategies to make the country a prime manufacturing hub for all nations across the world are expected to drive its economic growth. Also, favorable domestic job market, low interest rates allowing easy accessibility to cheap loans, infrastructure investments, healthy export demand and better monsoon conditions are additional factors that can make the country a favorable investment destination.
The country's industrial production grew 7.5% year over year in January 2018 versus a 7.1% gain recorded in December. Manufacturing output expanded 8.7%, electricity production jumped 7.6% while mere 0.1% growth was registered in mining.
According to the IMF, the country is projected to grow 7.4% in 2018 and 7.8% in 2019.
Brazil: The country is grappling with uncertainties on the political front that has over time adversely affected the country's growth opportunities. General elections are due this October with high probability of abandoned initiatives to reform the country's pension system becoming a major topic of discussion. Moreover, inadequate infrastructure and a still high unemployment rate of 12.6% (in three months ended February 2018) are other major hurdles.
Partially negating these, growth in export demand, strengthening spending in the housing markets and rise in consumer confidence are currently strengthening hopes of a turnaround in the Brazilian economy. Also, falling inflation has prompted the country's Central Bank to ease interest rates. Notably, the interest rate has been lowered 25 bps in March 2018, this being its 10th consecutive rate cut since 2017. The country's GDP in 2017 grew 1% after 3.5% decline in both 2015 and 2016 and is predicted to grow 3% in 2018.
In addition, the country's industrial production has been encouraging, with year-over-year growth of 5.7% recorded for January 2018. This compares favorably with 4.5% growth in December 2017 and 4.7% in November 2017.
The IMF expects the country's output to grow 1.9% in 2018, reflecting a 40 bps increase from the previous forecast. Also, growth projections for 2019 have been increased 10 bps to 2.1%.
Eurozone: The region, amidst all the political uncertainties, is showing improvements in export demand and labor markets. The region's GDP improved 2.7% year over year in fourth-quarter 2017 while advanced 2.3% in 2017. Industrial production improved 2.7% year over year in January 2018.
The unemployment rate was 8.6% in January 2018, down from 9.6% in the year-ago month but stable compared with December.
The IMF raised output growth estimates by 30 bps both for 2018 and 2019 to 2.2% and 2%, respectively.
Sector and Industry Ranking
Industrial machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. It currently occupies the second position in the Zacks sectors list.
Of the 265 industries comprising the Zacks sectors, those in the top half (i.e., industries with the best average Zacks Rank) have higher chances of beating the bottom half (i.e., the industries with the worst average Zacks Rank). (To learn more visit: About Zacks Industry Rank )
We believe that investors keen on exposure to industrial machinery companies have reasons to rejoice. Machinery industries with their positions are as follows: electrical products is in the top 2% of the 265 industries while construction and mining equipment is in the top 6%, farm equipment in the top 36% and thermal products in the top 49%.
Also, companies dealing in electronics are in the top 15%, material handling products in the top 5%, industrial tools and providing related services is in the top 29% and companies serving general industrial purposes are in the 42%. However, companies dealing in printing equipment for industrial use are in the bottom half at 95%.
Performance and Earnings Trend of the Sector
In the past five years, the Industrial Products sector has yielded a solid 35.4% return.
In the fourth quarter of 2017, earnings of Industrial Products grew 34.8% year over year, while revenues improved 14.5%. The earnings and sales growth was above 19.6% growth in earnings and 4.8% rise in revenues in the third quarter.
Our in-house projections, published in the Earnings Trends report dated Mar 23, indicate roughly 19.6% growth in earnings and 8.2% increase in revenues of Industrial Products sector in 2018. Margins are likely to expand roughly 1%. Growth for earnings and margins is higher than 18.7% and 0.46%, respectively, recorded in 2017, while that for revenues is below 2017-figure of 12.9%.
In the next three to five years, earnings of the Industrial Products sector are projected to grow 10.7%.
Our Take
I nternal requirements as well as export orders play a key role in determining the demand for industrial machineries in any country. We believe that efforts to improve trade relations across nations will be a boon for machinery companies. Also, increase in infrastructural investments, job creation and high consumer-end demand will help in further accelerating growth.
It will be interesting to watch the activities of industrial machinery companies, with at least $20 billion market capitalization, including Caterpillar Inc. (CAT), ABB Ltd. (ABB), Illinois Tool Works Inc. (ITW), Deere & Company (DE), Parker-Hannifin Corp. (PH), Ingersoll-Rand PLC (IR) and Stanley Black & Decker, Inc. (SWK).
In the S&P 500 group, a major machinery company is Catected to grow 12%. Earnings of Deere & Company are predicted to rise 5.67%. The company's long-term growth prospects seem bright on the back of increasing population, rising living standards, investments in new products and expansion in unexplored geographies.Illinois Tool Works' earnings are projected to grow 10.10% in the next three to five years.
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Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report
Parker-Hannifin Corporation (PH): Free Stock Analysis Report
Illinois Tool Works Inc. (ITW): Free Stock Analysis Report
Ingersoll-Rand PLC (Ireland) (IR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
ABB Ltd (ABB): 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 improvement in the ISM Purchasing Managers' Index suggests expanding economic activities in the manufacturing sector - the key highlights being healthier business conditions, favorable export orders and production, solid backlog and employment growth. Over the two years (2016-2017), the country's major stock indexes - S&P 500, Dow Jones Industrial Average and Nasdaq - have surged 30.8%, 41.9% and 37.9%, respectively. Its Gross Domestic Product (GDP) expanded roughly 1.5% in 2016 and 2.3% in 2017.
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Also, new orders for U.S.-manufactured machinery in January 2018 grew 11.4% year over year while the ISM Purchasing Managers' Index or manufacturing index for February expanded 1.7 percentage points from the previous month. It will be interesting to watch the activities of industrial machinery companies, with at least $20 billion market capitalization, including Caterpillar Inc. (CAT), ABB Ltd. (ABB), Illinois Tool Works Inc. (ITW), Deere & Company (DE), Parker-Hannifin Corp. (PH), Ingersoll-Rand PLC (IR) and Stanley Black & Decker, Inc. (SWK). Click to get this free report Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Ingersoll-Rand PLC (Ireland) (IR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report ABB Ltd (ABB): Free Stock Analysis Report To read this article on Zacks.com click here.
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Sector and Industry Ranking Industrial machinery stocks are broadly grouped under Industrial Products , one of the 16 broad Zacks sectors. Click to get this free report Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Ingersoll-Rand PLC (Ireland) (IR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report ABB Ltd (ABB): Free Stock Analysis Report To read this article on Zacks.com click here. Over the two years (2016-2017), the country's major stock indexes - S&P 500, Dow Jones Industrial Average and Nasdaq - have surged 30.8%, 41.9% and 37.9%, respectively.
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Over the two years (2016-2017), the country's major stock indexes - S&P 500, Dow Jones Industrial Average and Nasdaq - have surged 30.8%, 41.9% and 37.9%, respectively. Its Gross Domestic Product (GDP) expanded roughly 1.5% in 2016 and 2.3% in 2017. The earnings projection compares favorably with a growth rate of 9.7% recorded in 2017.
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40d991b4-6063-4f6e-be38-65ef5de1ad7b
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722052.0
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2018-04-03 00:00:00 UTC
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Is Deere & Company Stock a Buy Now? 3 Pros, 3 Cons
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DE
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https://www.nasdaq.com/articles/deere-company-stock-buy-now-3-pros-3-cons-2018-04-03
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company (NYSE: DE ) offered up sizzling quarterly-results in mid-February. The market hasn't cared. Since then, Deere stock is down almost 10%. To be fair, the S&P 500 itself hasn't been so healthy since February either.
That said, Deere's results were so strong that you'd expect the stock to be near the highs. With Deere stock at just 13x forward earnings, it's clear that the market is unconvinced that its recent results will continue in the future. That's a valid concern. Deere stock bulls have plenty of good responses though. Let's dive into the arguments.
Deere Stock Cons
Steel Tariffs : Generally, Trump's economic policies are a net positive for Deere stock. But it's not all good news. The Trump administration has proposed tariffs that could dramatically increase the price of steel for American manufacturing firms.
The 10 Worst Stocks to Buy for Q2
More than half of the cost of goods sold for companies such as Caterpillar Inc. (NYSE: CAT ) and Deere comes from raw materials. Steel surely accounts for a sizable chunk of that. So Deere is likely to have to pay more for steel until the day that the tariffs may be repealed. And Deere will have limited ability to raise prices to adjust for the higher cost of steel, as foreign competition won't be impacted by the tariffs.
Sales Growth Will Slacken : Deere reported a great first quarter. But this may be deceptive. Potential customers had two reasons to order more heavily in the first quarter as opposed to the fourth quarter of last year.
The first of these was that the upcoming law change incentivized spending money post-tax reform. Companies that waited until tax reform became law to order equipment benefited from lower tax rates and more favorable handling of depreciation. Additionally, the threat of steel tariffs is now likely driving customers to order now before prices go up. So while Deere and other heavy industrial companies are reporting great numbers, realize that there is a bit of artificial demand at the moment.
Low Grain Prices : The commodity grains have suffered low pricing for years now. To give one example, the Teucrium Wheat Fund (NYSEARCA: WEAT ) has lost nearly two-thirds of its value over the past five years. Corn and soybeans have both fared little better. In all, it's been a monster bear market for major agricultural commodities, and there's little sign of a trend change yet.
As a result, farmers are struggling. Land prices, which had been booming, are now showing weakness. All in all, these period of prolonged lower grain prices is taking a big bite out of the agricultural economy and acting as a persistent headwind for Deere stock.
Deere Stock Pros
Great Earnings Report : The company put in a great quarter. Deere grew top-line sales by 27%. Even after backing out of the effect of acquisitions and foreign exchange, Deere managed 19% sales growth.
Now, as mentioned in the cons, some of this effect is transitory. Sales driven by tax law changes and fear of tariffs are unlikely to continue beyond the next quarter or two. That said, organic sales grew 19% this quarter, and the company has guided to 14% for the whole year. That isn't as great as 19%, but it's still quite good. For a company at 21x trailing and 14x forward earnings, 14% sales growth is promising indeed.
More Mouths To Feed : The long-term story for Deere stock is both simple and compelling. The world population continues to boom. The U.S. Census Bureau estimates that the world population first hit 4 billion people in 1974. Just 38 years later, we reached 7 billion for the first time - nearly double.
The population growth rate is slowing as birth rates fall in developed countries. Still, forecasts peg the world's population as likely to rise to the 9-10 million range in 2050. While grain prices have struggled over the past five years, they eventually need to go up. The demand for food is only going up as humanity continues to expand its ranks.
Still Relatively Cheap : Deere stock has run up a ton over the past year. As a result, many investors look at it and think the best part of the move is already over. But that might not be the case.
Particularly given the recent 10% correction, Deere is a intriguing prospect at 14x forward earnings. And while Deere stock has been on fire over the past year, that comes after a long period of doing nothing. Deere stock first hit 90 in 2008 and 100 in 2011. Since then, the stock is only up modestly (50-60%), while the broader stock market has roared higher. That leaves room for Deere stock to make up for lost time and close the valuation gap.
Verdict on Deere Stock
These are exciting times for industrial equipment makers such as Caterpillar and Deere. A confluence of policy changes have triggered a massive rush of customer orders. Deere's first-quarter results were nothing short of outstanding. Yet the stock market merely shrugged. Clearly investors aren't sold on the idea that Deere has entered a new era of prosperity, leaving the stock at 14x forward earnings.
7 Cybersecurity Stocks to Buy Now
To be clear, this is a momentum trade, and could turn lower if Deere's sales growth tapers off faster than expected. But for now, the evidence favors remaining on the bullish side of Deere stock. Second-quarter results are likely to be strong, and Deere stock has more room to move when they come in.
At the time of this writing, the author held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek.
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The post Is Deere & Company Stock a Buy Now? 3 Pros, 3 Cons 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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And Deere will have limited ability to raise prices to adjust for the higher cost of steel, as foreign competition won't be impacted by the tariffs. All in all, these period of prolonged lower grain prices is taking a big bite out of the agricultural economy and acting as a persistent headwind for Deere stock. 7 Cybersecurity Stocks to Buy Now To be clear, this is a momentum trade, and could turn lower if Deere's sales growth tapers off faster than expected.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) offered up sizzling quarterly-results in mid-February. Deere Stock Cons Steel Tariffs : Generally, Trump's economic policies are a net positive for Deere stock. Since then, Deere stock is down almost 10%.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) offered up sizzling quarterly-results in mid-February. Deere Stock Cons Steel Tariffs : Generally, Trump's economic policies are a net positive for Deere stock. More From InvestorPlace 8 Stocks That Surprised Investors in Q1 4 Stocks That Could Suffer During the Great Unfriending 5 Gold Stocks to Buy Right Now for Q2 Compare Brokers The post Is Deere & Company Stock a Buy Now?
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Since then, Deere stock is down almost 10%. With Deere stock at just 13x forward earnings, it's clear that the market is unconvinced that its recent results will continue in the future. Deere Stock Cons Steel Tariffs : Generally, Trump's economic policies are a net positive for Deere stock.
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0268633f-5791-447b-9b66-fae70d247e12
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722053.0
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2018-04-03 00:00:00 UTC
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Bullish on Caterpillar? You'll Love These 2 Stocks
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DE
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https://www.nasdaq.com/articles/bullish-caterpillar-youll-love-these-2-stocks-2018-04-03
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nan
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nan
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Caterpillar Inc. (NYSE: CAT) has been one heck of a stock in the past year. Despite losing ground in recent weeks, the heavy-machinery manufacturer is still up nearly 59% in one year as of this writing. After a painfully long wait that lasted years, Caterpillar's key end markets have finally bottomed and are back on the growth track, helping the company turn its business around.
But while Caterpillar has grabbed the spotlight among investors, it isn't the only one benefiting from the broad-based recovery. Other players in the industry are also positioned to seize the opportunities; and if Caterpillar's order book is growing, can its suppliers be far behind? So if you're bullish on Caterpillar, take a look at Deere & Company (NYSE: DE) and KennametalInc . (NYSE: KMT) .
Deere timed this acquisition right
As the world's largest construction-equipment manufacturer, you can't ignore Caterpillar's views on the industry. Having delivered the largest sales volume increase in construction industries across its three business segments in fiscal 2017, Caterpillar is more and more bullish on the industry. For 2018, it projects robust demand from North America, Europe, and the Asia/Pacific region, even as it expects the recovery in the Latin American and Africa-Middle East regions to gather steam.
Deere is among the world's 10 largest construction-equipment manufacturers and serves nearly all the markets mentioned above.
Construction and forestry contributed 22% to Deere's total machinery sales last year, with sales from the segment climbing 17% on higher volumes and prices. This year, Deere projects segment sales to (hold your breath) jump a whopping 80%, with 56% of the increase attributable to its recent Wirtgen Group acquisition. To put that number in perspective, Deere foresees only 15% growth in sales from its primary agriculture-equipment business.
In fact, the timing of the Wirtgen acquisition reflects Deere's optimism about the construction industry. As the world's largest road-construction equipment manufacturer, with a global footprint spanning more than 100 countries, Wirtgen should give Deere a push into the high-potential transportation side of construction. In 2017, transportation was the top capital-spending category, according to the National Association of State Budget Officers' latest state spending report .
Agriculture, of course, remains Deere's bread-and-butter business, but the company's position in the global construction industry gives investors good exposure. With the bulk of Deere's projected 25% increase in fiscal 2018 revenue likely to come from its construction equipment business, it's time you pay attention.
Kennametal is primed to grow
Kennametal is an established manufacturer and global supplier of metalworking, mining, and construction tools; cutting systems; and wear-resistant components. Through its namesake and WIDIA brands, Kennametal serves companies across several key sectors, including earthworks, energy, aerospace, transportation, and engineering.
Last October, Kennametal struck an agreement with Caterpillar to provide special-order rotors and earth-cutting tools through the latter's worldwide dealership network. Caterpillar, however, is just one of Kennametal's customers -- the list includes heavyweights like United Technologies , Boeing , General Electric , and Halliburton , to name a few.
Caterpillar's prospects are tied closely to the infrastructure, manufacturing, mining, energy, and transportation sectors, all of which are common end markets for Kennametal. Not surprisingly, Kennametal is now on a road to recovery after struggling for years, much like Caterpillar.
There are two points worth noting here: First, each of Kennametal's segments -- industrial, infrastructure, and WIDIA -- is contributing to its top-line growth. Second, markets across the globe are displaying higher demand. Such a broad-based recovery is likely to sustain itself longer than a sector-specific revival.
In February, Kennametal not only reported solid numbers for its fiscal 2018 second quarter, including a 17% increase in year-over-year sales, but also upgraded its outlook for the full year.
It's worth noting here that Kennametal was free-cash-flow (FCF) positive through the downturn. Its expectations of up to $30 million in FCF this year may sound uninspiring, but investors should know that the company is ramping up its capital spending for a three-year "modernization" program that could save it $200 million to $300 million in costs. If sales beat estimates, Kennametal could generate higher FCF.
Attractive valuations
Now that I have made a case for Deere and Kennametal, it's only fair that I also give you an idea about the kind of valuations that the stocks are commanding right now.
From a trailing price-to-earnings perspective, Deere is the pricier of the two at 35 times, compared with Kennametal's P/E of 22.8. However, both stocks are trading at a forward P/E of around 13, suggesting a high upside potential in earnings for both companies. It's also not unusual for cyclical stocks to command higher premiums when business cycles improve, so there's a fair chance that Deere and Kennametal could earn good returns for you in the long run.
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Neha Chamaria 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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As the world's largest road-construction equipment manufacturer, with a global footprint spanning more than 100 countries, Wirtgen should give Deere a push into the high-potential transportation side of construction. It's also not unusual for cyclical stocks to command higher premiums when business cycles improve, so there's a fair chance that Deere and Kennametal could earn good returns for you in the long run. Despite losing ground in recent weeks, the heavy-machinery manufacturer is still up nearly 59% in one year as of this writing.
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Deere timed this acquisition right As the world's largest construction-equipment manufacturer, you can't ignore Caterpillar's views on the industry. Having delivered the largest sales volume increase in construction industries across its three business segments in fiscal 2017, Caterpillar is more and more bullish on the industry. Agriculture, of course, remains Deere's bread-and-butter business, but the company's position in the global construction industry gives investors good exposure.
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Deere timed this acquisition right As the world's largest construction-equipment manufacturer, you can't ignore Caterpillar's views on the industry. Having delivered the largest sales volume increase in construction industries across its three business segments in fiscal 2017, Caterpillar is more and more bullish on the industry. It's also not unusual for cyclical stocks to command higher premiums when business cycles improve, so there's a fair chance that Deere and Kennametal could earn good returns for you in the long run.
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Deere timed this acquisition right As the world's largest construction-equipment manufacturer, you can't ignore Caterpillar's views on the industry. Having delivered the largest sales volume increase in construction industries across its three business segments in fiscal 2017, Caterpillar is more and more bullish on the industry. It's also not unusual for cyclical stocks to command higher premiums when business cycles improve, so there's a fair chance that Deere and Kennametal could earn good returns for you in the long run.
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2d6b9397-c1d8-41da-b421-31bc47db91dc
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722054.0
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2018-04-02 00:00:00 UTC
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Look Under The Hood: IVV Has 15% Upside
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DE
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https://www.nasdaq.com/articles/look-under-hood-ivv-has-15-upside-2018-04-02
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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 iShares Core S&P 500 ETF (Symbol: IVV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $305.61 per unit.
With IVV trading at a recent price near $265.37 per unit, that means that analysts see 15.16% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IVV's underlying holdings with notable upside to their analyst target prices are Andeavor (Symbol: ANDV), Mattel Inc (Symbol: MAT), and Deere & Co. (Symbol: DE). Although ANDV has traded at a recent price of $100.56/share, the average analyst target is 32.95% higher at $133.69/share. Similarly, MAT has 28.33% upside from the recent share price of $13.15 if the average analyst target price of $16.88/share is reached, and analysts on average are expecting DE to reach a target price of $184.15/share, which is 18.56% above the recent price of $155.32. Below is a twelve month price history chart comparing the stock performance of ANDV, MAT, 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 ANDV has traded at a recent price of $100.56/share, the average analyst target is 32.95% higher at $133.69/share. Below is a twelve month price history chart comparing the stock performance of ANDV, MAT, 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 IVV's underlying holdings with notable upside to their analyst target prices are Andeavor (Symbol: ANDV), Mattel Inc (Symbol: MAT), and Deere & Co. (Symbol: DE). Similarly, MAT has 28.33% upside from the recent share price of $13.15 if the average analyst target price of $16.88/share is reached, and analysts on average are expecting DE to reach a target price of $184.15/share, which is 18.56% above the recent price of $155.32. 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, MAT has 28.33% upside from the recent share price of $13.15 if the average analyst target price of $16.88/share is reached, and analysts on average are expecting DE to reach a target price of $184.15/share, which is 18.56% above the recent price of $155.32. Below is a twelve month price history chart comparing the stock performance of ANDV, MAT, 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 IVV trading at a recent price near $265.37 per unit, that means that analysts see 15.16% upside for this ETF looking through to the average analyst targets of the underlying holdings. Similarly, MAT has 28.33% upside from the recent share price of $13.15 if the average analyst target price of $16.88/share is reached, and analysts on average are expecting DE to reach a target price of $184.15/share, which is 18.56% above the recent price of $155.32.
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d67bbca5-3e26-452b-9144-49dfef5a3c2b
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722055.0
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2018-03-29 00:00:00 UTC
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Why Illinois Tool Works is a Top Socially Responsible Dividend Stock (ITW)
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DE
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https://www.nasdaq.com/articles/why-illinois-tool-works-top-socially-responsible-dividend-stock-itw-2018-03-29
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nan
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nan
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Illinois Tool Works, Inc. (Symbol: ITW) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.0% 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 , Illinois Tool Works, Inc. is a member of the iShares USA ESG Select ETF ( SUSA ), making up 0.43% of the underlying holdings of the fund, which owns $4,275,858 worth of ITW shares.
The annualized dividend paid by Illinois Tool Works, Inc. is $3.12/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/28/2018. Below is a long-term dividend history chart for ITW, 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.
ITW operates in the Industrial Machinery & Equipment sector, among companies like Deere & Co. ( DE ), and Lam Research Corp ( LRCX ).
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 ITW, which the DividendRank report stressed as being of key importance. ITW operates in the Industrial Machinery & Equipment sector, among companies like Deere & Co. ( DE ), and Lam Research Corp ( LRCX ).
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Illinois Tool Works, Inc. (Symbol: ITW) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.0% 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 , Illinois Tool Works, Inc. is a member of the iShares USA ESG Select ETF ( SUSA ), making up 0.43% of the underlying holdings of the fund, which owns $4,275,858 worth of ITW 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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Illinois Tool Works, Inc. (Symbol: ITW) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.0% 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 Illinois Tool Works, Inc. is $3.12/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/28/2018. 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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7decdecf-e0b0-4b10-ac0c-928d8e2763e8
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722056.0
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2018-03-27 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for March 28, 2018
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-march-28-2018-2018-03-27
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nan
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nan
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Deere & Company ( DE ) will begin trading ex-dividend on March 28, 2018. A cash dividend payment of $0.6 per share is scheduled to be paid on May 01, 2018. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 16th quarter that DE has paid the same dividend.
The previous trading day's last sale of DE was $153.34, representing a -12.51% decrease from the 52 week high of $175.26 and a 43.4% increase over the 52 week low of $106.93.
DE is a part of the Capital Goods sector, which includes companies such as ASML Holding N.V. ( ASML ) and Thermo Fisher Scientific Inc ( TMO ). DE's current earnings per share, an indicator of a company's profitability, is $4.37. Zacks Investment Research reports DE's forecasted earnings growth in 2018 as 42.96%, compared to an industry average of 29.1%.
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:
iShares MSCI Agriculture Producers Fund ( VEGI )
VanEck Vectors Natural Resources ETF ( HAP ).
The top-performing ETF of this group is HAP with an increase of 1.03% over the last 100 days. VEGI has the highest percent weighting of DE at 10.91%.
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 42.96%, compared to an industry average of 29.1%. For more information on the declaration, record and payment dates, visit the DE Dividend History page.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. 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 March 28, 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: iShares MSCI Agriculture Producers Fund ( VEGI ) VanEck Vectors Natural Resources ETF ( HAP ).
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A cash dividend payment of $0.6 per share is scheduled to be paid on May 01, 2018. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) VanEck Vectors Natural Resources ETF ( HAP ).
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3c3288ea-d7b0-4bc9-9b5a-d8ba808e6480
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722057.0
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2018-03-26 00:00:00 UTC
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Durable Goods Orders Bounce Back in February: 5 Top Picks
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DE
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https://www.nasdaq.com/articles/durable-goods-orders-bounce-back-february-5-top-picks-2018-03-26
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nan
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nan
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On Mar 23, the U.S. Commerce Department published durable goods orders data for the month of February. The report showed strong business spending at US factories for expensive durable items such as machinery and vehicles.
Positive durable goods orders data came as a huge relief following the retail sales decline in February, which roused fears of an impending recession. Notably, the data was also an improvement from the contraction experienced in January.
Fundamentals of the economy remain solid. Recently, the Fed revised 2018 GDP projection to 2.7% from earlier estimate of 2.5%. Investor confidence remains high buoyed by a robust labor market, low inflationary expectations and anticipation of sustained earnings momentum. At this stage, it will make good sense to invest in those stocks from the industrials arena which possess strong fundamentals.
Robust Durable Goods Data
The Department of Commerce's data showed that new orders for durable goods increased 3.1% in February after two straight monthly declines. The figure outpaced the consensus estimate of 1.7%. This strong showing can be attributed to a jump of 7.1% in transportation equipment orders. Orders for non-defense capital goods excluding aircraft grew 1.8%, reflecting biggest gain in five months.
Core capital goods shipments increased 1.4%. This was the largest increase experienced since December 2016. This metric is used for calculating equipment spending which is part of the government's GDP measurement. A jump in industrial production supported by strong demand for machineries utilized mainly in factory production clearly indicates that the likelihood of a near-term recession is uncalled for.
Trump's Tariffs and Trade War Remain Concerns
Earlier this month, Trump imposed a 25% tariff on steel imports and 10% tariff on aluminium import to shore up these struggling industries. Many industry researchers have stated that imposition of tariffs by the United States will prompt affected countries to retaliate by imposing tariffs on U.S. products, paving the way for a full blown global trade war.
Fear of trade war has shaken the U.S. stock markets in the last week. Over the last five days, Dow 30 was down 5.7%, S&P 500 declined 2.1% and Nasdaq Composite dropped 2.4%. Consequently, S&P Industrial Select Sector SPDR (XLI) also declined 5.01% in the last five days.
However, spending on capital goods surged in February supported by solid business confidence, improvement in international economic growth and a weakening dollar. A cheap dollar makes U.S. manufacturing sector competitive boosting the demand for home-made goods. Notably, manufacturing sector accounts for nearly 12% of the U.S. GDP. These are the factors which are likely to outweigh trade related concerns in the weeks ahead.
Our Top Picks
Rising Durable Goods Orders are normally associated with stronger economic activity. At present, the U.S. economy is firmly placed on growth trajectory barring minor corrections. Additionally, Trump administration's decision to cut tax rate from 35% to 21% has been a shot in the arm for the United States.
Further, the government has taken a decision to spend a whopping $1.5 trillion on several infrastructure projects over a period of 10 years. This decision is likely to create about 25 million new jobs over a decade, which will spur higher consumer spending. This in turn will fuel long-term economic growth.
Considering these positives, investment on durable-goods producing stocks with high growth potential will be a wise decision. We narrowed down our choice to five stocks each of which carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
The chart below shows how our five picks outperformed the S&P 500 benchmark in the last three months.
Dover Corp.DOV is a diversified global manufacturer. The company delivers innovative equipment and components, specialty systems and support services.
Dover has expected earnings growth of 45.4% for current year. The Zacks Consensus Estimate for the current year has improved by 27.1% over the last 60 days.
DXP Enterprises Inc.DXPE is a leading products and service distributor that adds value and total cost savings solutions to industrial customers.
DXP Enterprises has expected earnings growth of 32.6% for current year. The Zacks Consensus Estimate for the current year has improved by 6.5% over the last 60 days.
Textainer Group Holdings Ltd.TGH is the world's largest lessor of intermodal containers with a total fleet of more than 1.3 million containers, representing over 2,000,000 TEU.
Textainer Group has expected earnings growth of 241.5% for current year. The Zacks Consensus Estimate for the current year has improved by 7.7% over the last 60 days.
Deere & Co.DE manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains used in heavy equipment, and lawn care equipment.
Deere has expected earnings growth of 43% for current year. The Zacks Consensus Estimate for the current year has improved by 17.2% over the last 60 days.
Rexnord Corp.RXN is an industrial company comprised of two platforms. These are Process & Motion Control and Water Management.
Rexnord has expected earnings growth of 2.3% for current year. The Zacks Consensus Estimate for the current year has improved by 7.1% over the last 60 days.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
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
Textainer Group Holdings Limited (TGH): Free Stock Analysis Report
Rexnord Corporation (RXN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
DXP Enterprises, Inc. (DXPE): 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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Positive durable goods orders data came as a huge relief following the retail sales decline in February, which roused fears of an impending recession. Investor confidence remains high buoyed by a robust labor market, low inflationary expectations and anticipation of sustained earnings momentum. However, spending on capital goods surged in February supported by solid business confidence, improvement in international economic growth and a weakening dollar.
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Robust Durable Goods Data The Department of Commerce's data showed that new orders for durable goods increased 3.1% in February after two straight monthly declines. Trump's Tariffs and Trade War Remain Concerns Earlier this month, Trump imposed a 25% tariff on steel imports and 10% tariff on aluminium import to shore up these struggling industries. Click to get this free report Textainer Group Holdings Limited (TGH): Free Stock Analysis Report Rexnord Corporation (RXN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Robust Durable Goods Data The Department of Commerce's data showed that new orders for durable goods increased 3.1% in February after two straight monthly declines. Click to get this free report Textainer Group Holdings Limited (TGH): Free Stock Analysis Report Rexnord Corporation (RXN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report To read this article on Zacks.com click here. On Mar 23, the U.S. Commerce Department published durable goods orders data for the month of February.
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Robust Durable Goods Data The Department of Commerce's data showed that new orders for durable goods increased 3.1% in February after two straight monthly declines. However, spending on capital goods surged in February supported by solid business confidence, improvement in international economic growth and a weakening dollar. On Mar 23, the U.S. Commerce Department published durable goods orders data for the month of February.
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02d99d26-d292-4e36-aa00-dbe5190231e6
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722058.0
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2018-03-20 00:00:00 UTC
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Why Deere (DE) Might Be a Diamond in the Rough
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DE
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https://www.nasdaq.com/articles/why-deere-de-might-be-a-diamond-in-the-rough-2018-03-20
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nan
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nan
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It can be very difficult to find companies that are both flying under the radar, and still might have potential for gains. Many times, stocks are off investors' radar screens for a reason, though there are some hidden gems that could be worth uncovering by those with a high risk tolerance.
One way to find these underappreciated stocks is by looking at companies that haven't seen their share prices move higher lately, but have observed analysts raising earnings estimates for their stock. This trend could signal that investors haven't quite embraced the rising estimate story yet, but that the potential for a big move higher is definitely there.
One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is Deere & CompanyDE . This Manufacturing - Farm Equipment stock has actually seen estimates rise over the past month for the current fiscal year by about 11%. But that is not yet reflected in its price, as the stock lost 1.8% over the same time frame.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
You should not be concerned about the price remaining muted going forward. This year's expected earnings growth over the prior year is 98.2%, which should ultimately translate into price appreciation.
And if this isn't enough, DE currently carries a Zacks Rank #2 (Buy) which further underscores the potential for its outperformance (See the performance of Zacks' portfolios and strategies here: About Zacks Performance ).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
So if you are looking for a stock flying under-the-radar that is well-equipped to bounce down the road, make sure to consider Deere. Solid estimate revisions and an impressive Zacks Rank suggest that better days may be ahead for DE and that now might be an interesting buying opportunity.
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
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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Many times, stocks are off investors' radar screens for a reason, though there are some hidden gems that could be worth uncovering by those with a high risk tolerance. This trend could signal that investors haven't quite embraced the rising estimate story yet, but that the potential for a big move higher is definitely there. Solid estimate revisions and an impressive Zacks Rank suggest that better days may be ahead for DE and that now might be an interesting buying opportunity.
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Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote You should not be concerned about the price remaining muted going forward. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. It can be very difficult to find companies that are both flying under the radar, and still might have potential for gains.
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One way to find these underappreciated stocks is by looking at companies that haven't seen their share prices move higher lately, but have observed analysts raising earnings estimates for their stock. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote You should not be concerned about the price remaining muted going forward. And if this isn't enough, DE currently carries a Zacks Rank #2 (Buy) which further underscores the potential for its outperformance (See the performance of Zacks' portfolios and strategies here: About Zacks Performance ).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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It can be very difficult to find companies that are both flying under the radar, and still might have potential for gains. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote You should not be concerned about the price remaining muted going forward. Many times, stocks are off investors' radar screens for a reason, though there are some hidden gems that could be worth uncovering by those with a high risk tolerance.
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b9e31ee7-1f19-4257-924b-65620c6aed51
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722059.0
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2018-03-19 00:00:00 UTC
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Emerson (EMR) to Distribute Dixell Products in United States
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DE
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https://www.nasdaq.com/articles/emerson-emr-to-distribute-dixell-products-in-united-states-2018-03-19
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nan
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nan
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In a bid tostrengthen itscold chain management capabilities, Emerson Electric Co.EMR recently announced the finalization of an agreement with Weiss Instruments, LLC. The financial details of the deal were kept under wraps.
In the United States, Weiss Instruments has operated as Dixell controls' third-party authorized distributor for more than two decades. Per the latest deal, Emerson will now directly serve the customers of its Dixell products by streamlining their access to Dixell-branded controls in the market of North America. Notably, the agreement does not include the core Weiss Instruments business, which will continue to operate as an independent company. Emerson's Dixell brand is touted as a global leader in microprocessor based electronic regulation, pressure and humidity controls for commercial refrigeration as well as air conditioning. Therefore, the direct offering and management of the Dixell products is likely to boost Emerson's ability of delivering portfolio of products and solutions to its customers.
Notably, the direct management of the Dixell products will facilitate the delivery of comprehensive customer solutions leveraging the portfolio of customized, packaged, programmable as well as building-level controls in the refrigeration, healthcare, air conditioning, industrial, and pharmaceutical industries.
Our Take
Emerson's growth momentum is being driven by favorable trends in energy-related, hybrid and general industrial markets as well as strong demand in the HVAC and refrigeration markets. Also, the company is expected to benefit from global infrastructure growth as its core businesses hold dominant positions in the markets tied to energy efficiency and infrastructure spending. In the past three months, this Zacks Rank #2 (Buy) stock has gained 5.6%, outperforming 0.2% growth recorded by the industry .
Meanwhile, the company remains enthusiastic about the prospects of its Commercial & Residential Solutions segment as it is witnessing improving trends in the United States, Europe and Asian construction markets. For instance, in the fiscal first quarter of 2018, the company's Automation Solutions platform reported an impressive 30.8% year-over-year growth. For the Automation Solutions segment, favorable trends in power and life sciences, and improving MRO demand are anticipated to boost growth.
Additionally, the company remains focused on launching new products and technologies that enables it to broaden its customer base and gain market traction. This apart, Emerson has a solid history of clinching lucrative contracts in the energy infrastructure, which is a positive for the company.
Other Stocks to Consider
Some other top-ranked stocks from the same space are Applied Industrial Technologies, Inc. AIT , Cimpress N.V CMPR and Deere & Company DE . While Applied Industrial Technologies and Cimpress sport a Zacks Rank #1 (Strong Buy), Deere & Company carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Industrial Technologies has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 11%.
Cimpress has outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 65.2%.
Deere & Company has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 17.3%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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
Emerson Electric Co. (EMR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
Cimpress N.V (CMPR): 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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Emerson's Dixell brand is touted as a global leader in microprocessor based electronic regulation, pressure and humidity controls for commercial refrigeration as well as air conditioning. Meanwhile, the company remains enthusiastic about the prospects of its Commercial & Residential Solutions segment as it is witnessing improving trends in the United States, Europe and Asian construction markets. The financial details of the deal were kept under wraps.
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Other Stocks to Consider Some other top-ranked stocks from the same space are Applied Industrial Technologies, Inc. AIT , Cimpress N.V CMPR and Deere & Company DE . While Applied Industrial Technologies and Cimpress sport a Zacks Rank #1 (Strong Buy), Deere & Company carries a Zacks Rank #2. Click to get this free report Emerson Electric Co. (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Cimpress N.V (CMPR): Free Stock Analysis Report To read this article on Zacks.com click here.
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Other Stocks to Consider Some other top-ranked stocks from the same space are Applied Industrial Technologies, Inc. AIT , Cimpress N.V CMPR and Deere & Company DE . While Applied Industrial Technologies and Cimpress sport a Zacks Rank #1 (Strong Buy), Deere & Company carries a Zacks Rank #2. Click to get this free report Emerson Electric Co. (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Cimpress N.V (CMPR): Free Stock Analysis Report To read this article on Zacks.com click here.
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For the Automation Solutions segment, favorable trends in power and life sciences, and improving MRO demand are anticipated to boost growth. Other Stocks to Consider Some other top-ranked stocks from the same space are Applied Industrial Technologies, Inc. AIT , Cimpress N.V CMPR and Deere & Company DE . The financial details of the deal were kept under wraps.
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6c4582ed-b9ad-4e4d-8e9e-a780b98582a8
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722060.0
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2018-03-19 00:00:00 UTC
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ABB's Growth Catalysts & Multiple Headwinds: The Road Ahead
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DE
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https://www.nasdaq.com/articles/abbs-growth-catalysts-multiple-headwinds%3A-the-road-ahead-2018-03-19
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nan
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nan
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ABB Ltd. 's ABB earnings history of late shows an impressive beat streak with the company's bottom line trumping estimates in each of the trailing four quarters for an average positive surprise of 14.1%. Last quarter, it beat estimates by 32%.
However, the company's shares have underperformed the industry in the past six months, having gained just 7.1% compared with the industry's rally of 13.3%
We expect this Zacks Rank #3 (Hold) stock to accelerate its growth momentum in the near future, driven by solid contributions from its accretive acquisitions, successful restructuring efforts and cost-saving initiatives. However, the company is clearly facing some multiple headwinds to be concerned about. Read on to find out the key growth drivers and risks for ABB right now.
Growth Drivers
Steady growth in revenues in the Electrification Products and Robotics & Motion segments has been a key contributor to ABB's momentum. The Robotics and Motion segment has been enjoying robust demand patterns in robotics and light industry while the Electrification Products unit is benefiting from positive construction and utility demand, particularly in the AMEA region. The Electrification Products business has also been expanding in the emerging markets, on the back of its microgrid products, designed specifically for the shift to renewable power generation.
Improving base order trends and underlying profitability improvement from ABB's accelerated simplification and cost-reduction efforts will be conducive to bottom-line growth. As the recent end-market demand challenges and raw material costs begin to subside, strong cost-reduction actions will likely enhance profitability for ABB in 2018. The company also expects a diminishing impact from commodities this year as its recent price increases get implemented fully, which in turn should boost its margins.
ABB has earned a solid reputation for winning strategic awards and forging important partnerships. It recently teamed up with Hewlett Packard Enterprise to integrate its industry-leading digital offering, ABB Ability, with Hewlett Packard's innovative hybrid information technology solutions. The partnership looks promising to leverage ABB's expertise in operations technologies (OT) and Hewlett Packard Enterprise's proficiency in IT to come up with joint industry solutions, which would help turn industrial data into insights and automatic action.
ABB also joined forces with Kawasaki Heavy Industries Ltd. recently to share knowledge and promote the advantages of collaborative robots, particularly those with dual arm designs.
We are highly optimistic about ABB's recent $2.6-billion acquisition of GE Industrial Solutions, which might fortify its global foothold in electrification and expand the company's access to the North American market.
Further, the company anticipates the latest B&R buyout to bridge the gap in machine and factory automation while also generating tremendous operational synergies. ABB also agreed to acquire the data transmission business of the KEYMILE Group in July 2018. This transaction is predicted to expand communication networks business footprint in the industrial, transportation and infrastructure domains. ABB estimates these integrations to help shift its focus to higher growth segments, thereby adding a more competitive edge to its profile.
The company is highly positive about the impact of its White-Collar Productivity savings program, which has garnered significant cost savings over the past few quarters. Moreover, positive investments made by all three major markets of the company, namely utilities, industry and transport & infrastructure, are forecast to boost the financials, going forward.
The consensus analyst community's optimism on the stock is reflected in its upward estimate revisions. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward to $1.37 from $1.41 over the past 30 days, highlighting a bullish sentiment around the stock.
ABB Ltd Price, Consensus and EPS Surprise
ABB Ltd Price, Consensus and EPS Surprise | ABB Ltd Quote
Risks
ABB's exposure to oil and gas markets makes it susceptible to current price volatility in the market, thus posing a severe challenge. We believe, lower capital spending for the upstream energy end-markets might hurt financials as well. Sales growth for ABB depends on the stabilization of the energy markets.
Further, incremental investments in ABB's Power Up productivity optimization program and the dilutive impact of the GE Industrial Solutions acquisition pose threats to the company's margins in 2018. Also, the company has been facing tangible commodity price concerns, hurting its profits for a while. The prices are still on the rise and are expected to dent margins in 2018.
The company's backlog has also declined in recent times, particularly for the Industrial Automation and Power Grids segments, which does not bode well for the performance going into 2018. Further, in developed economies, utilities' cash flow has been constrained of late and this has limited the spending to upgrade the aging transmission and distribution grid infrastructure. This in turn also restricts ABB's prospects.
Also, there have been strong structural headwinds in ABB's largest business - Power Grids - in the past few quarters. ABB predicts this trend to continue this year as well. Additionally, a sluggish industrial production and the projected slowdown are weighing on the company's financials. Currently, the industrial slowdown in China is posing another threat to the company's profitability and might impact its performance in the upcoming quarters.
To Conclude
On the face of it, it seems that the company's growth drivers outweigh its risks. In terms of valuation, the company's trailing- twelve-month PE stands at 19.4, lower than the industry's PE of 22, indicating that ABB is slightly undervalued relative to its industry.
Stocks to Consider
Some better-ranked stocks in the broader space are Deere & Company DE , Titan International, Inc. TWI and Alamo Group, Inc. ALG , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Deere & Company delivered an earnings beat over the trailing four quarters with an average positive surprise of 17.3%.
Titan International has outpaced estimates twice in the last four quarters. Last quarter, it trumped estimates by 23.1%.
Alamo Group has a decent earnings surprise history for the same time frame, having surpassed estimates thrice with an average beat of 12.2%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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
ABB Ltd (ABB): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Titan International, Inc. (TWI): Free Stock Analysis Report
Alamo Group, Inc. (ALG): 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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ABB also joined forces with Kawasaki Heavy Industries Ltd. recently to share knowledge and promote the advantages of collaborative robots, particularly those with dual arm designs. However, the company's shares have underperformed the industry in the past six months, having gained just 7.1% compared with the industry's rally of 13.3% We expect this Zacks Rank #3 (Hold) stock to accelerate its growth momentum in the near future, driven by solid contributions from its accretive acquisitions, successful restructuring efforts and cost-saving initiatives. The Robotics and Motion segment has been enjoying robust demand patterns in robotics and light industry while the Electrification Products unit is benefiting from positive construction and utility demand, particularly in the AMEA region.
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Stocks to Consider Some better-ranked stocks in the broader space are Deere & Company DE , Titan International, Inc. TWI and Alamo Group, Inc. ALG , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report ABB Ltd (ABB): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company's shares have underperformed the industry in the past six months, having gained just 7.1% compared with the industry's rally of 13.3% We expect this Zacks Rank #3 (Hold) stock to accelerate its growth momentum in the near future, driven by solid contributions from its accretive acquisitions, successful restructuring efforts and cost-saving initiatives.
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Click to get this free report ABB Ltd (ABB): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company's shares have underperformed the industry in the past six months, having gained just 7.1% compared with the industry's rally of 13.3% We expect this Zacks Rank #3 (Hold) stock to accelerate its growth momentum in the near future, driven by solid contributions from its accretive acquisitions, successful restructuring efforts and cost-saving initiatives. The Robotics and Motion segment has been enjoying robust demand patterns in robotics and light industry while the Electrification Products unit is benefiting from positive construction and utility demand, particularly in the AMEA region.
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Stocks to Consider Some better-ranked stocks in the broader space are Deere & Company DE , Titan International, Inc. TWI and Alamo Group, Inc. ALG , each sporting a Zacks Rank #1 (Strong Buy). However, the company's shares have underperformed the industry in the past six months, having gained just 7.1% compared with the industry's rally of 13.3% We expect this Zacks Rank #3 (Hold) stock to accelerate its growth momentum in the near future, driven by solid contributions from its accretive acquisitions, successful restructuring efforts and cost-saving initiatives. The Robotics and Motion segment has been enjoying robust demand patterns in robotics and light industry while the Electrification Products unit is benefiting from positive construction and utility demand, particularly in the AMEA region.
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0400bd47-3c13-46c1-98e7-5d248dba9ec2
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722061.0
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2018-03-19 00:00:00 UTC
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Caterpillar to Shut Facilities, Layoff 880 Jobs to Cut Costs
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DE
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https://www.nasdaq.com/articles/caterpillar-to-shut-facilities-layoff-880-jobs-to-cut-costs-2018-03-19
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nan
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nan
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Caterpillar Inc.CAT is planning to close two facilities in Texas and Panama and is also mulling the shutdown of its engine manufacturing plant in Illinois, per a Reuters report. Though the move could lead to a layoff of 880 jobs, it is in sync with the company's strategy to cut cost. Consequently, this will boost margins and equip the company to better handle business cycles.
The move will affect its work tools facility in Waco, TX, and its demonstration centre in Panama. The work at the Texas plant will be shifted to Wamego, KS, affecting 200 regular and contract positions. The shutdown of the Panama facility will lead to elimination of about 80 positions. Caterpillar's Progress Rail unit is contemplating the closure of its engine manufacturing facility in La Grange, IL. The work will be shifted to Winston-Salem, NC, and outside suppliers.
Restructuring to Drive Margins
In September 2015, Caterpillar set out with significant restructuring and cost reduction initiative, with actions expected through 2018. Once fully implemented, the plan would lower annual operating costs by about $1.5 billion. This includes the consolidation or closure of more than 30 facilities and reduction of workforce by more than 16,000.
Caterpillar Inc. Price and Consensus
Caterpillar Inc. price-consensus-chart | Caterpillar Inc. Quote
Thanks to its incessant efforts to cut down costs, the company was able to deliver a turnaround performance in 2017 after bearing the brunt of weak-end markets for few years. Notably, Caterpillar reported year-over-year improvement in both top and bottom-line in the first quarter of 2017 - the first time in 10 quarters. Retail sales growth entered the positive trajectory in March following an unprecedented stretch of declines for 51 months.
Expanded Offerings to Fuel Growth
In addition to restructuring activities, Caterpillar continues to focus on customers and on the future by continuing to invest in digital capabilities, connecting assets and jobsites along with developing the next generation of more productive and efficient products. Caterpillar is preparing factories and suppliers to be ready to meet increased demand, while remaining focused on developing a more competitive and flexible cost structure. This should enable the company to respond quickly if economic fundamentals change.
The company is in the early stages of implementing its strategy for profitable growth. During 2018, the company will continue to make additional investments in expanded offerings and services important for its long-term success. Caterpillar will use Operating & Execution Model to divert resources to areas that represent the greatest opportunity for return on investments.
Caterpillar's share price has surged 64% over the past year, outperforming the industry 's growth of 61%.
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Some other top-ranked stocks in the same industry are Deere & Company DE , Komatsu Ltd. KMTUY and H&E Equipment Services, Inc. HEES . All these stocks carry a Zacks Rank #2.
Deere has a long-term earnings growth rate of 8.2%. The company's shares have been up 48% in a year's time.
Komatsu has a long-term earnings growth rate of 31.7%. Its shares have gone up 26% in the past year.
H&E Equipment Services has a long-term earnings growth rate of 14.4%. The stock has gained 61% in a year's time.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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
Komatsu Ltd. (KMTUY): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): 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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Caterpillar is preparing factories and suppliers to be ready to meet increased demand, while remaining focused on developing a more competitive and flexible cost structure. Caterpillar will use Operating & Execution Model to divert resources to areas that represent the greatest opportunity for return on investments. The move will affect its work tools facility in Waco, TX, and its demonstration centre in Panama.
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Some other top-ranked stocks in the same industry are Deere & Company DE , Komatsu Ltd. KMTUY and H&E Equipment Services, Inc. HEES . Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The move will affect its work tools facility in Waco, TX, and its demonstration centre in Panama.
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Caterpillar Inc. Price and Consensus Caterpillar Inc. price-consensus-chart | Caterpillar Inc. Quote Thanks to its incessant efforts to cut down costs, the company was able to deliver a turnaround performance in 2017 after bearing the brunt of weak-end markets for few years. Expanded Offerings to Fuel Growth In addition to restructuring activities, Caterpillar continues to focus on customers and on the future by continuing to invest in digital capabilities, connecting assets and jobsites along with developing the next generation of more productive and efficient products. Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Some other top-ranked stocks in the same industry are Deere & Company DE , Komatsu Ltd. KMTUY and H&E Equipment Services, Inc. HEES . The move will affect its work tools facility in Waco, TX, and its demonstration centre in Panama. The work will be shifted to Winston-Salem, NC, and outside suppliers.
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2018-03-19 00:00:00 UTC
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Bemis Inks Agreement With Starboard to Appoint New Directors
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https://www.nasdaq.com/articles/bemis-inks-agreement-with-starboard-to-appoint-new-directors-2018-03-19
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Bemis Company, Inc.BMS recently entered into an agreement with Starboard Value LP (Starboard) to appoint new independent directors to its board.
Per the announcement, Bemis has elected Guillermo Novo, Marran H. Ogilvie, George W. Wurtz III, and Robert H. Yanker as the new directors effective immediately. Starboard, which has about 3.3% stake in Bemis, will vote in favor of all of the board's nominees.
Bemis also announced that two existing board members will not stand for re-election at the 2018 annual meeting. Following the meeting, the board will comprise 13 directors, 12 of whom will be independent.
Bemis Company, Inc. Price
Bemis Company, Inc. Price | Bemis Company, Inc. Quote
In addition, Bemis has created a Finance and Strategy Committee of the board, which will include two incumbent directors, David S. Haffner and Philip G. Weaver, and two new directors, Ogilvie and Yanker. This committee will look after the company's financial matters.
Bemis' decision to appoint directors is anticipated to enhance shareholders' value. In sync with its commitment to boost shareholders' value, the company repurchased 2.2 million shares for $103.8 million during fiscal 2017. Also, recently Bemis approved a 3.3% hike in its quarterly cash dividend to 31 cents per share.
Bemis has underperformed its industry with respect to price performance over the past six months. The stock has lost around 4%, while the industry has recorded growth of 2% during the same time frame.
Zacks Rank & Other Stocks to Consider
Bemis currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the same sector are AptarGroup, Inc. ATR , Caterpillar Inc. CAT and Deere & Company DE . All three stocks carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
AptarGroup has a long-term earnings growth rate of 8.5%. Its shares have rallied 4.7%, over the past six months.
Caterpillar has a long-term earnings growth rate of 12%. The company's shares have been up 25% during the same time frame.
Deere has a long-term earnings growth rate of 8.2%. The stock has gained 32% in six months' time.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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
Bemis Company, Inc. (BMS): Free Stock Analysis Report
AptarGroup, Inc. (ATR): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): 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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Some other top-ranked stocks in the same sector are AptarGroup, Inc. ATR , Caterpillar Inc. CAT and Deere & Company DE . Bemis Company, Inc.BMS recently entered into an agreement with Starboard Value LP (Starboard) to appoint new independent directors to its board. Following the meeting, the board will comprise 13 directors, 12 of whom will be independent.
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Bemis Company, Inc. Price Bemis Company, Inc. Price | Bemis Company, Inc. Quote In addition, Bemis has created a Finance and Strategy Committee of the board, which will include two incumbent directors, David S. Haffner and Philip G. Weaver, and two new directors, Ogilvie and Yanker. Some other top-ranked stocks in the same sector are AptarGroup, Inc. ATR , Caterpillar Inc. CAT and Deere & Company DE . Click to get this free report Bemis Company, Inc. (BMS): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Bemis Company, Inc. Price Bemis Company, Inc. Price | Bemis Company, Inc. Quote In addition, Bemis has created a Finance and Strategy Committee of the board, which will include two incumbent directors, David S. Haffner and Philip G. Weaver, and two new directors, Ogilvie and Yanker. Zacks Rank & Other Stocks to Consider Bemis currently carries a Zacks Rank #2 (Buy). Click to get this free report Bemis Company, Inc. (BMS): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Bemis Company, Inc. Price Bemis Company, Inc. Price | Bemis Company, Inc. Quote In addition, Bemis has created a Finance and Strategy Committee of the board, which will include two incumbent directors, David S. Haffner and Philip G. Weaver, and two new directors, Ogilvie and Yanker. Zacks Rank & Other Stocks to Consider Bemis currently carries a Zacks Rank #2 (Buy). Bemis Company, Inc.BMS recently entered into an agreement with Starboard Value LP (Starboard) to appoint new independent directors to its board.
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2018-03-19 00:00:00 UTC
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Deere & Company, Expedia, Oracle, Nike and Micron as Zacks Bull and Bear of the Day
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https://www.nasdaq.com/articles/deere-company-expedia-oracle-nike-and-micron-as-zacks-bull-and-bear-of-the-day-2018-03-19
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For Immediate Release
Chicago, IL - March 19, 2018 - Zacks Equity Research highlights Deere & Company DE as the Bull of the Day and Expedia EXPE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Oracle CorporationORCL , Nike, Inc.NKE and Micron Technology, Inc.MU .
Here is a synopsis of all five stocks:
Bull of the Day :
Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape. Still, there is clearly plenty of strength in many core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company .
Through its John Deere brand, Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery. The company was founded in 1837 and is one of the most historic American corporations around, but management's commitment to investment and innovation has kept it on the cutting edge through the years.
Deere & Company shares have surged about 45% over the past year, significantly outpacing its industry peers. And after another strong quarter, the company has witnessed a tidal wave of positive estimate revisions, earning it a Zacks Rank #1 (Strong Buy).
Latest Earnings Report
Deere reported its first-quarter fiscal 2018 results on Feb. 16. The company posted adjusted earnings of $1.31 per share, crushing the Zacks Consensus Estimate of $1.16 and improving a staggering 11% year over year. Total equipment revenues totaled $5.97 billion, up 27% from the year-ago period.
Region wise, equipment net sales increased 24% in the United States and Canada, and 33% in the rest of the world. Total net sales (including financial services) came in at $6.9 billion, up 23% year over year.
Looking at the company's specific segments, Agriculture & Turf sales increased 18% to $4.3 billion, while operating profit at the segment climbed 78% to $387 million. Construction & Forestry sales surged 57% to $1.73 billion, mainly as a result of the Wirtgen acquisition-which added 5% to total net sales.
Deere also detailed its upbeat outlook for the remainder of the fiscal year. Management raised its total equipment sales growth outlook for fiscal 2018 to around 29%, up from prior guidance of about 22%. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
Bear of the Day :
There have been plenty of winners to choose from in the tech sector recently, even over the past two months of increased volatility. However, we have started to see investors punish underperforming companies with slightly stretched valuations. Online travel booking giant Expedia is one such stock.
Expedia is a U.S.-based travel company that operates about 200 travel websites in about 75 countries. Its portfolio includes recognizable names like Expedia.com, Hotels.com, Hotwire.com, trivago, Travelocity, and Orbitz.
After a disappointing Q4 earnings report, Expedia witnessed a plethora of negative earnings estimate revisions, and the stock has failed to generate any positive momentum. This Zacks Rank #5 (Strong Sell) might be due for a recovery eventually, but for now, investors should look to avoid it.
Latest Earnings Report
Expedia reported its fourth-quarter results on Feb. 8. The company posted adjusted earnings per share of 84 cents, missing the Zacks Consensus Estimate by 32 cents and sliding more than 28% year over year. This was Expedia's six-consecutive earnings miss. Quarterly revenues of $2.32 billion also lagged our consensus estimate of $2.37 billion.
Adjusted EBITDA plunged 9% to $402 million. Notably, trivago, Egencia and Home Away EBITDA decreased 164.3%, 9.5% and 26.2%, respectively, on a year-over-year basis. Adjusted gross margin contracted 80 basis points from the year-ago period. Operating expenses as percentage of revenues were 65.1% compared with 62.5% in the prior-year period.
This increase in marketing expenses can be attributed to higher adjusted selling and marketing expenses. This is concerning for investors and indicates that Expedia is being forced to spend more to fend off increased competition.
In the report, Expedia said that it expects cost of revenues to grow slightly faster than revenues. Management also expects that technology and content expenses will grow significantly faster than revenues this year.
Additional content:
Upcoming Earnings Reports to Watch: ORCL, NKE, MU
We have hit a lull as far as earnings reports go, and Wall Street's attention has shifted from tax benefits and strong guidance to international trade debates and continued turnover at the White House. Still, Q4 earnings season was strong across the board, and as several major companies with non-traditional calendars report in the coming days, investors will hope that this trend continues.
With that said, investors can always 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.
And today, we've made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected the biggest reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of March 19.
1. Oracle Corporation
Software giant Oracle is scheduled to release its latest quarterly financial results after the closing bell on March 19. Continued adoption of cloud infrastructure has been a growth catalyst for Oracle, but the company's stock has proven to be much more volatile than many of its tech peers. Shares of ORCL are up just 15% over the past year, and patient investors have endured significant up-and-down swings over that time.
Based on our current Zacks Consensus Estimates, we expect Oracle to report revenues of $9.8 billion and adjusted earnings of 72 cents per share. These results would represent year-over-year growth rates of 5.5% and 4.4%, respectively. Last quarter, cloud revenues surged 44%, so investors will want to pay close attention to this segment when Oracle reports.
2. Nike, Inc.
Athletic apparel behemoth Nike is slated to announce its latest quarterly earnings details after the market closes on March 22. Headwinds at major retail partners and shifting consumer habits have put pressure on companies like Nike, but the company's remarkable brand portfolio and market share should support results. NKE is carrying a Zacks Rank #3 (Hold) into its report date.
According our latest Zacks Consensus Estimates, Nike is projected to report adjusted earnings per share of 52 cents, down more than 23% from the year-ago period. However, expected revenues of $8.8 billion would mark an improvement of 4.7% year over year.
3. Micron Technology, Inc.
Red-hot semiconductor memory solutions company Micron is scheduled to release its latest quarterly earnings report after the closing bell on March 22. Micron has skyrocketed on the back of rising demand for its memory chips, as well as improvements to its own operations. The stock has gained more than 130% over the past year and is holding a Zacks Rank #2 (Buy) ahead of its report.
Our Zacks Consensus Estimates are calling for Micron to report adjusted earnings of $2.76 per share and total revenues of $7.23 billion, which would represent year-over-year growth of 206.7% and 55.5%, respectively.
Want more market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!
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Expedia, Inc. (EXPE): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
NIKE, Inc. (NKE): 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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Here is a synopsis of all five stocks: Bull of the Day : Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape. Still, there is clearly plenty of strength in many core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company . For Immediate Release Chicago, IL - March 19, 2018 - Zacks Equity Research highlights Deere & Company DE as the Bull of the Day and Expedia EXPE as the Bear of the Day.
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Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report NIKE, Inc. (NKE): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - March 19, 2018 - Zacks Equity Research highlights Deere & Company DE as the Bull of the Day and Expedia EXPE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Oracle CorporationORCL , Nike, Inc.NKE and Micron Technology, Inc.MU .
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Click to get this free report Expedia, Inc. (EXPE): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report NIKE, Inc. (NKE): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - March 19, 2018 - Zacks Equity Research highlights Deere & Company DE as the Bull of the Day and Expedia EXPE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Oracle CorporationORCL , Nike, Inc.NKE and Micron Technology, Inc.MU .
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For Immediate Release Chicago, IL - March 19, 2018 - Zacks Equity Research highlights Deere & Company DE as the Bull of the Day and Expedia EXPE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Oracle CorporationORCL , Nike, Inc.NKE and Micron Technology, Inc.MU . Here is a synopsis of all five stocks: Bull of the Day : Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape.
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2018-03-19 00:00:00 UTC
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3 Reasons Why Deere & Company Stock Can Rise
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https://www.nasdaq.com/articles/3-reasons-why-deere-company-stock-can-rise-2018-03-19
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Deere & Company (NYSE: DE) stock is up more than 80% in the last three years, but investors shouldn't start thinking about selling just yet. The company's first-quarter results were a positive, and earnings at companies like Caterpillar Inc. (NYSE: CAT) had some encouraging signs for its non-agricultural segments. Deere shares have room to run -- here are three reasons why.
Key markets are turning
Deere generated nearly 70% of its operating profit from its agriculture and turf segment. Around 60% of the segment's equipment sales come from North America -- in turn half of equipment sales go to the large agricultural machinery market.
Unfortunately, Deere's North American agricultural machinery sales have been in decline since 2013; sales of large agricultural machinery, in particular, have slumped. The impact on Deere's operating results can be seen below.
Data source: Deere & Company presentations.
However, the good news is that North American demand is growing again, in particular, large agricultural machinery demand . In fact, management raised its forecast for full-year sales growth as "the industry is experiencing stronger replacement demand for large equipment," according to Brent Norwood, manager of investor communications.
Data source: Deere & Company presentations.
It's a good sign that Deere's core marketplace, and its most important equipment market, is growing again.
Guidance looks conservative
Deere raised its guidance across the board -- but there's reason to believe that it's too conservative. First, here's a look at the formal guidance given during the earnings presentation:
Data source: Deere & Company presentations. *Includes 54 points due to the Wirtgen acquisition. **Excludes impact of U.S. tax reform; on an as-reported basis net income is forecast to be $2.1 billion
It's worth taking the time to understand what happened to net income guidance and why it makes Deere's forecast look conservative.
During the first quarter, Deere had charges of $965 million in relation to recent tax reform, but thanks to a more favorable tax rate through the year, management expects the full-year impact to be just $750 million. Of course, if you add the $750 million to the $2.1 billion as-reported figure for net income, you will get the $2.85 billion figure quoted in the table above.
However, management said the $2.85 billion net income guidance was assuming a 29.5% full-year tax rate -- but this rate doesn't reflect the impact of the tax law changes. Here's the tricky part: Deere's effective tax rate for the rest of the year and the following years is expected to be in the 25%-27% range. If we assume a 25%-27% tax range for 2018, then Deere's net income would be in the $2.95 billion-$3.03 billion range.
There's room for upside in equipment sales
There's reason to be optimistic about both segments.
Regarding agricultural equipment, Norwood said customers were expressing "their equipment demand in terms of need versus want." This means farmers are buying Deere's equipment out of necessity, rather than because of any upturn in the market.
In fact, many of the factors usually associated with an improving end market for Deere aren't actually in place as yet. For example, management expects total U.S. farm cash receipts to fall 1% to $372 billion in 2018, and global stocks-to-use ratios for wheat, soybeans, and cotton remain at elevated levels -- a bearish sign for prices.
In a nutshell, this means that Deere still has upside potential for machinery sales should inclement weather -- and the climate is very hard to predict over the course of a year -- reduce crop output and prices are driven higher. As a rule, farmers tend to buy more machinery when crop prices and income rise.
In the construction segment, the latest retail sales data from Caterpillar and Deere is bullish for 2018. For example, Caterpillar's global construction equipment retail sales were up 27% on a three-month rolling basis in February, with North American sales up 25%. Similarly, Deere's construction and forestry equipment retail sales were up double-digits in February -- the fifth consecutive month of double-digit increases.
Is Deere a stock to buy?
Deere's guidance is arguably conservative as its end markets are doing well enough, despite ongoing difficulties with low crop prices. The replacement cycle for large agricultural equipment looks set to drive agricultural machinery sales, and any increase in crop prices would potentially provide an additional boost. Throw in some booming construction markets and the company is well-placed to have a strong year in 2018.
10 stocks we like better than Deere & Company
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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 & Company (NYSE: DE) stock is up more than 80% in the last three years, but investors shouldn't start thinking about selling just yet. Data source: Deere & Company presentations. In a nutshell, this means that Deere still has upside potential for machinery sales should inclement weather -- and the climate is very hard to predict over the course of a year -- reduce crop output and prices are driven higher.
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Unfortunately, Deere's North American agricultural machinery sales have been in decline since 2013; sales of large agricultural machinery, in particular, have slumped. Data source: Deere & Company presentations. Deere & Company (NYSE: DE) stock is up more than 80% in the last three years, but investors shouldn't start thinking about selling just yet.
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Unfortunately, Deere's North American agricultural machinery sales have been in decline since 2013; sales of large agricultural machinery, in particular, have slumped. Data source: Deere & Company presentations. **Excludes impact of U.S. tax reform; on an as-reported basis net income is forecast to be $2.1 billion It's worth taking the time to understand what happened to net income guidance and why it makes Deere's forecast look conservative.
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Data source: Deere & Company presentations. The replacement cycle for large agricultural equipment looks set to drive agricultural machinery sales, and any increase in crop prices would potentially provide an additional boost. Deere & Company (NYSE: DE) stock is up more than 80% in the last three years, but investors shouldn't start thinking about selling just yet.
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2018-03-19 00:00:00 UTC
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Why Is Deere (DE) Down 1.8% Since its Last Earnings Report?
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https://www.nasdaq.com/articles/why-is-deere-de-down-1.8-since-its-last-earnings-report-2018-03-19
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It has been about a month since the last earnings report for Deere & CompanyDE . Shares have lost about 1.8% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is DE due for a breakout? 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 Q1 Earnings Beat on Rising Demand, View Upbeat
Deere reported first-quarter fiscal 2018 (ended Jan 28, 2018) adjusted earnings of $1.31 per share, which surged a whopping 111% year over year. The bottom line surpassed the Zacks Consensus Estimate of $1.16. Deere's strong results were driven by elevated demand, improvement in agricultural and construction equipment market partly offset by supply chain and logistical delays in shipping products.
Including tax adjustments related to the tax reform, the company reported a loss of $1.66 per share, compared to earnings of 62 cents per share recorded in the year-ago quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $5.97 billion, rising 27% year over year. Revenues, however, missed the Zacks Consensus Estimate of $6.4 billion.
Deere's acquisition of the Wirtgen Group in December 2017 added 5% to net sales in the first quarter. Sales also included a favorable currency-translation effect of 3% in the quarter. Region wise, equipment net sales increased 24% in the United States and Canada, and 33% in the rest of the world. Total net sales (including financial services and others) came in at $6.9 billion, up 23% year over year.
Operational Update
Cost of sales in the quarter increased 24% year over year to $4.7 billion. Gross profit in the reported quarter came in at $1.27 billion, advancing 38.5% year over year. Selling, administrative and general expenses flared up 5.6% to $705 million. Operating profit significantly improved to $636 million from $422 million reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales increased 18% year over year to $4.24 billion, primarily driven by higher shipment volumes and positive currency-translation impact. Operating profit at the segment climbed 78% year over year to $387 million, driven by higher shipment volumes and lower warranty costs, partially offset by escalated production costs.
Construction & Forestry sales surged 57% year over year to $1.73 billion, mainly as a result of the Wirtgen acquisition. Sales also increased due to higher shipment volumes and the favorable impact of currency translation. This segment reported operating profit of $32 million, down 14% from $37 million recorded in the prior-year quarter. The decline was due to operating loss for the Wirtgen acquisition related to the effects of purchase accounting and acquisition costs.
Net revenues at Deere's Financial Services division totaled $776 million in the reported quarter, up 11% year over year. The segment's operating profit came in at $217 million, up 30% year over year. Net income at the segment was $425.3 million compared with $114.4 million recorded in the year-earlier quarter. The increase was largely attributable to a provisional income-tax benefit of $278.1 million related to the tax reform.
Financial Update
Deere reported cash and cash equivalents of $3.92 billion at the end of the fiscal first quarter as against $3.89 billion at the end of the prior year quarter. Cash used in operations was $1,296.8 million in the quarter compared with $736.7 million in the prior-year quarter. At the quarter end, long-term borrowing totaled $26.4 billion, up from $22.9 billion at the end of the year-ago quarter.
Looking Ahead
Deere raised its total equipment sales growth outlook for fiscal 2018 to around 29% year over year from the prior guidance of about 22%. For the second-quarter of fiscal 2018, the company expects sales to be up 30-40% from the year-ago quarter. Deere stated that the Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 16% for the fiscal second quarter. The forecast also includes a positive foreign-currency translation impact of about 3% for the fiscal and about 4% in the fiscal second quarter. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion. Excluding the impact of the tax reform, adjusted net income is forecast to be about $2.85 billion.
Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 15% in fiscal 2018, including a positive currency-translation effect of about 3%. Industry sales for agricultural equipment in the United States and Canada are estimated to be up about 10% for the fiscal, aided by higher 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 continued positive conditions, particularly in Argentina.
The company predicts global sales for Construction & Forestry equipment to be up a massive 80% for fiscal 2018, including a positive currency-translation effect of about 2%. 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 5%.
The outlook for net income from Financial Services has been set at $840 million for fiscal 2018, which includes about $320 million of favorable changes associated with the recent tax reform. The outlook reflects a higher average portfolio, partially offset by 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 seven revisions higher for the current quarter. In the past month, the consensus estimate has shifted by 16.9% due to these changes.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
VGM Scores
Currently, DE has a poor Growth Score of F, however its Momentum is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise DE has a Zacks Rank #2 (Buy). We expect an above average 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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Deere's strong results were driven by elevated demand, improvement in agricultural and construction equipment market partly offset by supply chain and logistical delays in shipping products. Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 15% in fiscal 2018, including a positive currency-translation effect of about 3%. It has been about a month since the last earnings report for Deere & CompanyDE .
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Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 15% in fiscal 2018, including a positive currency-translation effect of about 3%. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote VGM Scores Currently, DE has a poor Growth Score of F, however its Momentum is doing a lot better with a B. It has been about a month since the last earnings report for Deere & CompanyDE .
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Deere Q1 Earnings Beat on Rising Demand, View Upbeat Deere reported first-quarter fiscal 2018 (ended Jan 28, 2018) adjusted earnings of $1.31 per share, which surged a whopping 111% year over year. Financial Update Deere reported cash and cash equivalents of $3.92 billion at the end of the fiscal first quarter as against $3.89 billion at the end of the prior year quarter. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
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Including tax adjustments related to the tax reform, the company reported a loss of $1.66 per share, compared to earnings of 62 cents per share recorded in the year-ago quarter. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote VGM Scores Currently, DE has a poor Growth Score of F, however its Momentum is doing a lot better with a B.
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431edf48-0859-4047-ba93-22a18ace948d
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722066.0
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2018-03-19 00:00:00 UTC
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Bull of the Day: Deere & Company (DE)
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DE
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https://www.nasdaq.com/articles/bull-day-deere-company-de-2018-03-19
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nan
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nan
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Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape. Still, there is clearly plenty of strength in many core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company (DE).
Through its John Deere brand, Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery. The company was founded in 1837 and is one of the most historic American corporations around, but management's commitment to investment and innovation has kept it on the cutting edge through the years.
Deere & Company shares have surged about 45% over the past year, significantly outpacing its industry peers. And after another strong quarter, the company has witnessed a tidal wave of positive estimate revisions, earning it a Zacks Rank #1 (Strong Buy).
Latest Earnings Report
Deere reported its first-quarter fiscal 2018 results on Feb. 16. The company posted adjusted earnings of $1.31 per share, crushing the Zacks Consensus Estimate of $1.16 and improving a staggering 11% year over year. Total equipment revenues totaled $5.97 billion, up 27% from the year-ago period.
Region wise, equipment net sales increased 24% in the United States and Canada, and 33% in the rest of the world. Total net sales (including financial services) came in at $6.9 billion, up 23% year over year.
Looking at the company's specific segments, Agriculture & Turf sales increased 18% to $4.3 billion, while operating profit at the segment climbed 78% to $387 million. Construction & Forestry sales surged 57% to $1.73 billion, mainly as a result of the Wirtgen acquisition-which added 5% to total net sales.
Deere also detailed its upbeat outlook for the remainder of the fiscal year. Management raised its total equipment sales growth outlook for fiscal 2018 to around 29%, up from prior guidance of about 22%. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
Estimate Revisions and Key Stats
As we can see, Deere's strong quarter has inspired a tidal wave of positive earnings estimate revisions. The key here is that we are seeing 100% agreement among the analysts that are revising their estimates. These analysts are in agreement with the company's upbeat guidance, and we now expect Deere to have an even better fiscal 2018.
Furthermore, we see some opportunity here from a value perspective. The stock is trading at just 16.8x forward earnings, which is a noticeable discount to its industry's average. What's more, a P/S ratio of 1.7 is respectable, and the company is generating a staggering $12.06 in cash per share right now. And Deere's 1.5% dividend might not be spectacular, but it is a welcome addition to an already-solid stock.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
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
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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Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape. Still, there is clearly plenty of strength in many core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company (DE). The company was founded in 1837 and is one of the most historic American corporations around, but management's commitment to investment and innovation has kept it on the cutting edge through the years.
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Estimate Revisions and Key Stats As we can see, Deere's strong quarter has inspired a tidal wave of positive earnings estimate revisions. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape.
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For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion. Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape. Still, there is clearly plenty of strength in many core areas of the economy, including agriculture and industrials, and investors searching for a great pick in these segments should look no further than Deere & Company (DE).
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Construction & Forestry sales surged 57% to $1.73 billion, mainly as a result of the Wirtgen acquisition-which added 5% to total net sales. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion. Concerns about rising volatility were quickly replaced by fears of an impending trade war this week, making it clear that investors are hesitant to become over confident in the current economic landscape.
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15ec0bd8-2885-49ff-8b2b-a5862c55429b
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722067.0
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2018-03-16 00:00:00 UTC
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U.S. Manufacturing Activity Holds Up Well: 5 Solid Buys
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DE
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https://www.nasdaq.com/articles/us-manufacturing-activity-holds-well-5-solid-buys-2018-03-16
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nan
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nan
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Both the Philly Fed and Empire State manufacturing indices displayed continued factory activity growth in some of the eastern U.S. states in March. Manufacturing activity in the United States picked up pace last month fueled by solid global growth and improved business sentiments. Manufacturers are on a hiring spree and are paying more than other jobs, reflecting sustained strength in the sector.
But, if President Trump's protectionist policies put manufacturers under pressure, Larry Kudlow's appointment as the new economic advisor should be a respite. After all, he has moderate views on tariffs and can certainly tone down trade war talks. Given the positives, doubling down on the hottest manufacturing stocks seems judicious.
Continued Growth in Manufacturing Survey Shows
According to the Federal Reserve Bank of Philadelphia, manufacturing activity in Pennsylvania, New Jersey and Delaware continues to expand in March. The Philadelphia Fed manufacturing index slipped to 22.3 from 25.8 in February. But, the gauge remained well above zero, which indicates improving conditions. In fact, the survey found out that nearly 37% of the manufacturers felt that the conditions have improved over the month while only 14% reported that conditions have worsened.
The indices for current new orders and shipments showed notable improvement this month. The survey showed that the current new orders index went up 11 points, with 52% of the responding firms reporting an uptick in new orders. Similarly, the index that measures the quantity of goods shipped increased 17 points.
New York Manufacturing Index Trends Higher
Manufacturing activity has also been growing in New York State this month, the Federal Reserve Bank of New York said in its latest news release. The Empire State manufacturing index that had been lagging Philly, climbed to a reading of 22.5 from 13.1 in February. The survey showed that 38% of respondents reported felt manufacturing activity had improved, while 15% felt drop in such activity.
The new orders index increased 3 points to 16.8 and the shipments index rose 15 points to 27. Not only had this reading show strong growth in the regional manufacturing hub, firms are also optimistic about future business prospects and capital spending plans "remain strong," added the New York Fed.
Factories See Fastest Growth Since May 2004
Broader manufacturing activities, in fact, expanded at the fastest pace in February since May 2004, as per figures from the Institute for Supply Management (ISM). Improving global economies and firm business investment helped factories expand at a record pace. This expansion comes on the heels of a pickup in consumer spending levels. After all, consumer outlays increased at the fastest pace in the fourth quarter in more than a year.
The factory index went up 1.7 points to 60.8 in February from 59.1 in the prior month, while measures of new orders dropped to 64.2 from 65.4. However, any reading above 50 indicates expansion. Overall, 15 out of 18 manufacturing industries expended last month, mostly led by machinery, printing and primary metals.
Manufacturers Are Hiring!
Manufacturers also kept adding jobs at a faster pace than the rest of the economy. They have added 222,000 new jobs last year, resuming a recovery that had paused in 2015 and 2016. Recently, the ISM report showed that the employment gauge hit a four-month high of 59.7 in February from 54.2 in the prior month.
Manufacturers, in the meantime, are paying better than other jobs. Average weekly earnings for production and non-supervisory employees came in at $900.55 last month, more than $757.12 for the private sector taken together. Lest we forget, job additions in the manufacturing sector have a multiplier effect as it invariably leads to other jobs. Thus, a booming manufacturing sector bodes well for the overall economy.
Will Trade War Hit Manufacturers?
The manufacturing sector, however, has been under some pressure owing to Trump's tariff plans. Trump has slapped tariffs worth $60 billion on Chinese imports, while similar taxes have been imposed on all foreign steel and aluminum items.
But, Peter Navarro, the top adviser on international economic exchanges, boosted confidence by saying that "Trump's tough approach to global trade will not necessarily provoke retaliation from trading partners." Moreover, Trump's new top economic adviser, Larry Kudlow could help the United States avoid a trade war. Kudlow is primarily known for his free-trade views and is a more moderate voice in the White House.
5 Top Picks
It will, therefore, be prudent to invest in fundamentally-sound manufacturing stocks that can make the most of the promising trend. We have, thus, selected five such companies that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Applied Industrial Technologies, Inc.AIT distributes industrial products. The company offers products for maintenance, repair, and operational, as well as original equipment manufacturing customers. The stock has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings moved up 0.9% in the last 60 days. The company's expected growth rate for the current quarter and year is 24% and 21.5%, respectively. Applied Industrial Technologies has outperformed the Zacks Manufacturing - General Industrial industry in the past six months (+20.4% vs. +10.5%).
Deere & CompanyDE manufactures and distributes agriculture and turf, and construction and forestry equipment. The stock has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings rose 17.2% in the last 60 days. The company's expected growth rate for the current quarter and year is 34.9% and 42.7%, respectively. Deere & Company has outperformed the Zacks Manufacturing - Farm Equipment industry in the last six-month period (+33.1% vs. +27.1%).
Lincoln Electric Holdings, Inc.LECO designs, manufactures, and sells welding, cutting, and brazing products. The stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings rose 10.3% in the last 60 days. The company's expected growth rate for the current quarter and year is 21.6% and 24.8%, respectively. Lincoln Electric Holdings has outperformed the Zacks Manufacturing - Tools & Related Products industry in the last three-month period (+1.4% vs. -5.6%). You can see the complete list of today's Zacks #1 Rank stocks here.
Caterpillar Inc.CAT manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries. The stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings jumped 14.9% in the last 60 days. The company's expected growth rate for the current quarter and year is 61.7% and 32.9%, respectively. Caterpillar has outperformed the Zacks Manufacturing - Construction and Mining industry in the past six months (+24.8% vs. +24.2%).
Milacron Holdings Corp.MCRN manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry. The stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings moved up 6.9% in the last 60 days. The company's expected growth rate for the current quarter and year is 21.9% and 10.7%, respectively. Milacron Holdings has outperformed the Zacks Manufacturing - Material Handling industry in the last six-month period (+26.8% vs. +12.2%).
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
Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
Milacron Holdings Corp. (MCRN): 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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But, if President Trump's protectionist policies put manufacturers under pressure, Larry Kudlow's appointment as the new economic advisor should be a respite. After all, he has moderate views on tariffs and can certainly tone down trade war talks. Continued Growth in Manufacturing Survey Shows According to the Federal Reserve Bank of Philadelphia, manufacturing activity in Pennsylvania, New Jersey and Delaware continues to expand in March.
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Continued Growth in Manufacturing Survey Shows According to the Federal Reserve Bank of Philadelphia, manufacturing activity in Pennsylvania, New Jersey and Delaware continues to expand in March. Click to get this free report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Milacron Holdings Corp. (MCRN): Free Stock Analysis Report To read this article on Zacks.com click here. But, if President Trump's protectionist policies put manufacturers under pressure, Larry Kudlow's appointment as the new economic advisor should be a respite.
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New York Manufacturing Index Trends Higher Manufacturing activity has also been growing in New York State this month, the Federal Reserve Bank of New York said in its latest news release. Click to get this free report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Milacron Holdings Corp. (MCRN): Free Stock Analysis Report To read this article on Zacks.com click here. But, if President Trump's protectionist policies put manufacturers under pressure, Larry Kudlow's appointment as the new economic advisor should be a respite.
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The indices for current new orders and shipments showed notable improvement this month. But, if President Trump's protectionist policies put manufacturers under pressure, Larry Kudlow's appointment as the new economic advisor should be a respite. After all, he has moderate views on tariffs and can certainly tone down trade war talks.
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8aac1241-f949-4659-9677-03fad0ba6189
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722068.0
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2018-03-15 00:00:00 UTC
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Why Corindus Vascular Robotics Inc. Is Tanking
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DE
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https://www.nasdaq.com/articles/why-corindus-vascular-robotics-inc-tanking-2018-03-15
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nan
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nan
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What happened
Shares of Corindus Vascular Robotics (NYSEMKT: CVRS) , a robotic surgery company focused on vascular disease, fell 22% as of 3:39 p.m. EDT on Thursday after fourth-quarter results were released.
So what
Here's an overview of the key numbers from the period:
Revenue jumped 740% to $4.2 million. The gain was driven by the sale of six new CorPath GRX Systems and four system upgrades.
Shipments of cassettes -- which are the consumable portion of the CorPath GRX System -- grew 74% year over year to 455.
Net loss declined to $8.0 million for the quarter or $0.04 per share. This matched Wall Street's estimate and was lower than the $9.8 million loss that was recorded in the same period last year.
Cash balance at year-end was $17.5 million.
The installed base at year-end was 33 systems.
Investors were given a sneak preview of the company's results in January so it isn't entirely clear why shares are selling off so much today. However, the stock also rocketed higher yesterday for no reason at all , so perhaps today's volatility isn't all that surprising.
Now what
Looking beyond the financials, Corindus has notched a number of noteworthy wins recently, including:
Winning Food and Drug Administration clearance for the CorPath GRX System to be used in peripheral vascular interventions
Winning FDA clearance for new software that will increase the attractiveness of the CorPath GRX platform
Launching a new educational series with Medtronic that is designed to educate cardiologists on the benefits of robotic-assisted vascular interventions
When combined with the huge revenue growth and sizable market opportunity, it looks like Corindus is on a nice roll. Given the company's current market cap of just $257 million, there could be a substantial amount of upside ahead if the momentum can continue.
On the flip side, Corindus' cash balance is dwindling, so it likely won't be long before this company decides to raise capital at shareholders' expense. That's not great news when considering that this stock has been more than two-thirds down since its IPO in 2014.
Overall, I find Corindus' technology, opportunity, and business model to be intriguing, but this stock is still way too speculative for my taste. If you're interested in investing in the robotic surgery space, I'd suggest looking elsewhere .
10 stocks we like better than Corindus Vascular Robotics, Inc. (DE)
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*Stock Advisor returns as of March 5, 2018
Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool owns shares of Medtronic. 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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Now what Looking beyond the financials, Corindus has notched a number of noteworthy wins recently, including: Winning Food and Drug Administration clearance for the CorPath GRX System to be used in peripheral vascular interventions Winning FDA clearance for new software that will increase the attractiveness of the CorPath GRX platform Launching a new educational series with Medtronic that is designed to educate cardiologists on the benefits of robotic-assisted vascular interventions When combined with the huge revenue growth and sizable market opportunity, it looks like Corindus is on a nice roll. Given the company's current market cap of just $257 million, there could be a substantial amount of upside ahead if the momentum can continue. On the flip side, Corindus' cash balance is dwindling, so it likely won't be long before this company decides to raise capital at shareholders' expense.
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10 stocks we like better than Corindus Vascular Robotics, Inc. (DE) When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Corindus Vascular Robotics, Inc. (DE) wasn't one of them! The gain was driven by the sale of six new CorPath GRX Systems and four system upgrades.
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Now what Looking beyond the financials, Corindus has notched a number of noteworthy wins recently, including: Winning Food and Drug Administration clearance for the CorPath GRX System to be used in peripheral vascular interventions Winning FDA clearance for new software that will increase the attractiveness of the CorPath GRX platform Launching a new educational series with Medtronic that is designed to educate cardiologists on the benefits of robotic-assisted vascular interventions When combined with the huge revenue growth and sizable market opportunity, it looks like Corindus is on a nice roll. 10 stocks we like better than Corindus Vascular Robotics, Inc. (DE) When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The gain was driven by the sale of six new CorPath GRX Systems and four system upgrades.
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This matched Wall Street's estimate and was lower than the $9.8 million loss that was recorded in the same period last year. 10 stocks we like better than Corindus Vascular Robotics, Inc. (DE) When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The gain was driven by the sale of six new CorPath GRX Systems and four system upgrades.
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2b676cd4-fd63-475c-ab0e-2fed7bc3a1f7
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722069.0
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2018-03-14 00:00:00 UTC
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Here's Why Corindus Vascular Robotics Inc. Is Surging Today
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DE
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https://www.nasdaq.com/articles/heres-why-corindus-vascular-robotics-inc-surging-today-2018-03-14
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nan
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nan
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What happened
Corindus Vascular Robotics, Inc. (NYSEMKT: CVRS) , a company developing robotic-assisted vascular intervention devices, is on the move just ahead of its fourth-quarter earnings report expected after market close today. The stock was up 16.2% as of 3:10 p.m. EDT on Wednesday.
So what
Corindus preannounced revenue expectations for 2017 over a month ago, and investors already know the company increased its base of installed systems by 10 to a total of 33 during the fourth quarter. Although the company has already given its shareholders plenty to get excited about in recent months, it looks like investors are buying up shares today in hopes that management will hint at strong demand for its CorPath GRX System among surgeons performing peripheral vascular interventions.
The CorPath GRX System's launch is going swimmingly and it could get a big boost. In 2017, spending on peripheral procedures hit an estimated $3.4 billion, and in February, the Food and Drug Administration expanded approved applications for Corindus' system from just coronary interventions to include repairing peripheral blood vessels.
Now what
Fixing arteries that carry blood to the extremities could be a huge business for Corindus. By 2020, U.S. surgeons are expected to perform a million of the procedures annually and they'd probably prefer using a CorPath system that greatly reduces the amount of radiation they're exposed to on a regular basis.
Considering the size of this untapped market, Corindus Vascular Robotics' recent market cap of $298 million looks like it has plenty of room to grow. That could make this an important robotic surgery stock to watch in the quarters ahead.
10 stocks we like better than Corindus Vascular Robotics, Inc. (DE)
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 tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Corindus Vascular Robotics, Inc. (DE) 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 March 5, 2018
Cory Renauer 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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Although the company has already given its shareholders plenty to get excited about in recent months, it looks like investors are buying up shares today in hopes that management will hint at strong demand for its CorPath GRX System among surgeons performing peripheral vascular interventions. What happened Corindus Vascular Robotics, Inc. (NYSEMKT: CVRS) , a company developing robotic-assisted vascular intervention devices, is on the move just ahead of its fourth-quarter earnings report expected after market close today. In 2017, spending on peripheral procedures hit an estimated $3.4 billion, and in February, the Food and Drug Administration expanded approved applications for Corindus' system from just coronary interventions to include repairing peripheral blood vessels.
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Although the company has already given its shareholders plenty to get excited about in recent months, it looks like investors are buying up shares today in hopes that management will hint at strong demand for its CorPath GRX System among surgeons performing peripheral vascular interventions. Considering the size of this untapped market, Corindus Vascular Robotics' recent market cap of $298 million looks like it has plenty of room to grow. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Corindus Vascular Robotics, Inc. (DE) wasn't one of them!
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Although the company has already given its shareholders plenty to get excited about in recent months, it looks like investors are buying up shares today in hopes that management will hint at strong demand for its CorPath GRX System among surgeons performing peripheral vascular interventions. 10 stocks we like better than Corindus Vascular Robotics, Inc. (DE) When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Corindus Vascular Robotics, Inc. (DE) wasn't one of them!
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Although the company has already given its shareholders plenty to get excited about in recent months, it looks like investors are buying up shares today in hopes that management will hint at strong demand for its CorPath GRX System among surgeons performing peripheral vascular interventions. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Corindus Vascular Robotics, Inc. (DE) wasn't one of them! What happened Corindus Vascular Robotics, Inc. (NYSEMKT: CVRS) , a company developing robotic-assisted vascular intervention devices, is on the move just ahead of its fourth-quarter earnings report expected after market close today.
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1f54bed3-1ca2-4e7b-913b-4284f34d7b6f
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722070.0
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2018-03-13 00:00:00 UTC
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Why Silgan Holdings (SLGN) is a Must-Add to Your Portfolio
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https://www.nasdaq.com/articles/why-silgan-holdings-slgn-is-a-must-add-to-your-portfolio-2018-03-13
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With continued focus on improving manufacturing efficiencies and a growing operating income, Silgan Holdings Inc.SLGN appears a solid bet now. Further, synergies of the Dispensing Systems acquisition are anticipated to yield positive results for the stock.
Let's delve deeper and find out what are the factors that make this supplier of rigid packaging for consumer goods products an attractive investment option.
What's Working in Favor of Silgan Holdings?
Solid Rank & VGM Score: Silgan Holdings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The company also has a Value Growth Momentum Score ( VGM Score ) of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2, offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Above the Industry: Silgan Holdings' shares have outperformed the industry with respect to price performance over the past six months. The company's shares have lost around 0.4%, while the industry incurred a loss of 0.9% during the same time frame.
Upward Estimate Revisions: The Zacks Consensus Estimate for earnings per share for 2018 has moved up 11% to $2.09 in the last 60 days. The same for 2019 has gone up 9% to $2.24 during the same time frame.
Superior Return on Assets (ROA): Silgan Holdings' ROA of 5.3%, as compared with the industry average of 4.1%, highlights the company's efficiency in generating earnings by effectively managing assets.
Upbeat Guidance: For 2018, Silgan Holdings guided adjusted earnings per share in the range of $2.03-$2.13. The mid-point of this range depicts year-over-year growth of 26%. The company expects improvement in sales and operating income across all its segments. For first-quarter 2018, the company initiated a guidance range of 32-36 cents for adjusted earnings per share, reflecting year-over-year growth of around 10%. This increase is primarily a result of the inclusion of the Dispensing Systems operation and the benefit of the lower effective tax rate.
Growth Drivers in Place: Silgan Holdings' metal container business will benefit from continued manufacturing efficiencies and the lagged contractual pass through of raw material inflation to customers. Further, the company's closures business is expected to gain from the Dispensing Systems operations, including synergies, continued benefits of manufacturing efficiencies and higher unit volumes. The company also anticipates its plastic container business to gain from continued manufacturing efficiencies and volume growth.
Thus, Silgan Holdings' cash flow performance will grow on the back of improved operating income in each business, net improvement in working capital as a result of the significant reduction in inventories in the metal container business, and lower cash taxes.
Silgan has a long-term earnings growth rate of 10%.
Other Stocks to Consider
Some other similarly-ranked stocks in the sector include Avery Dennison Corporation AVY , AptarGroup, Inc. ATR and Deere & Company DE .
Avery Dennison has a long-term earnings growth rate of 7%. Its shares have rallied 22.6%, over the past six months.
AptarGroup has a long-term earnings growth rate of 8.5%. The company's shares have been up 7.4% during the same time frame.
Deere has a long-term earnings growth rate of 8.2%. The stock has gained 24.2% in six months' time.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
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Silgan Holdings Inc. (SLGN): Free Stock Analysis Report
AptarGroup, Inc. (ATR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Avery Dennison Corporation (AVY): 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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Let's delve deeper and find out what are the factors that make this supplier of rigid packaging for consumer goods products an attractive investment option. Upbeat Guidance: For 2018, Silgan Holdings guided adjusted earnings per share in the range of $2.03-$2.13. The mid-point of this range depicts year-over-year growth of 26%.
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Other Stocks to Consider Some other similarly-ranked stocks in the sector include Avery Dennison Corporation AVY , AptarGroup, Inc. ATR and Deere & Company DE . Click to get this free report Silgan Holdings Inc. (SLGN): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report To read this article on Zacks.com click here. Let's delve deeper and find out what are the factors that make this supplier of rigid packaging for consumer goods products an attractive investment option.
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Other Stocks to Consider Some other similarly-ranked stocks in the sector include Avery Dennison Corporation AVY , AptarGroup, Inc. ATR and Deere & Company DE . Click to get this free report Silgan Holdings Inc. (SLGN): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report To read this article on Zacks.com click here. Let's delve deeper and find out what are the factors that make this supplier of rigid packaging for consumer goods products an attractive investment option.
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Let's delve deeper and find out what are the factors that make this supplier of rigid packaging for consumer goods products an attractive investment option. Upbeat Guidance: For 2018, Silgan Holdings guided adjusted earnings per share in the range of $2.03-$2.13. The mid-point of this range depicts year-over-year growth of 26%.
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796f56af-8cbe-4dd8-a26b-35b2d21c7580
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722071.0
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2018-03-13 00:00:00 UTC
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Machinery Stocks to Bear the Brunt of Trump's Tariff Plan
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DE
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https://www.nasdaq.com/articles/machinery-stocks-bear-brunt-trumps-tariff-plan-2018-03-13
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On Mar 8, President Donald Trump implemented a tariff of 25% on steel imports and 10% on aluminum imports from all countries except Canada and Mexico to counter an "assault on the country" by foreign competitors. This is a bid to reinforce the American steel and aluminum industries which had long been reeling under the onslaught of cheap imports and suffered significant reduction in production and employment.
Cheap Imports a "Threat to National Security"
At the behest of the Trump administration last year, the U.S. Department of Commerce's carried out investigations under Section 232 of the Trade Expansion Act of 1962, to determine whether the imports pose a threat to national security. Reports were submitted to the President in January 2018.
The reports concluded that the quantities of steel and aluminum imports "threaten to impair the national security," as defined by Section 232. In fact, U.S. steel imports were nearly four times the company's exports, and that aluminum imports had risen to 90% of total demand for primary aluminum. Six basic oxygen furnaces and four electric furnaces have closed since 2000 and employment slumped 35% since 1998. In the aluminum industry employment fell by 58% in the 2013-2016 period with six smelters being shut down, and only two of the remaining five smelters operating at capacity, despite growth in demand.
Taking the scenario into consideration, the Commerce Department recommended that President Trump take action to protect the long-term viability of the nation's steel and aluminum industries.
Mexico, Canada Exempted
The exemption of Mexico and Canada is a significant concession from Trump's initial plan for broad-based tariffs on steel and aluminum given that Canada is the largest steel exporter to the United States, accounting for roughly 17% of total U.S. steel imports in 2017. Mexico comes in the fourth position with around 9% share of the imports market.
The exclusions of these countries are however dependent on the outcome of the North American Free Trade Agreement ("NAFTA") renegotiation talks that are underway. There will be provisions for other countries to apply for exemptions provided their imports do not hurt the U.S. economy.
Will the Consequences be Far Reaching?
The announcement has already caused serious friction within the Republican Party and stoked fears of a trade war. It is likely to lead to imposition of retaliatory tariffs on important American exports to other countries, which might hurt the U.S economy.
The European Union ("EU") plans to strike back by imposing tariffs on iconic U.S. brands. Brazil, the second-largest exporter of steel to the United States with roughly 13% share of total imports last year, also pledged to take "all necessary actions" to protect its interests. South Korea, which comes after Brazil in terms of imports, stated it may file a complaint to the World Trade Organization.
China has also warned that it will assess any damage caused by the tariffs and "firmly defend its legitimate rights and interests". Though China only accounts for 2% of U.S. steel imports, it is the world's biggest producer of steel accounting for around half of the global production. Its massive industrial expansion has led to dumping excess steel into global markets.
Relief for Steel & Aluminium Industry, Concern for Others
Per the recommendation of the Commerce Department, the imposition of tariff on imports would increase domestic steel production from its present capacity of 73% to approximately an 80% operating rate and for aluminum it is likely to rise from 48% to 80%. These are the minimum rates needed for the long-term viability of the industry. The tariffs are welcome news for American steel makers as it will lead to expected lower imports into the United States, which would in turn boost demand for American steel. This will provide the domestic players with more pricing power.
However, this move has left have left consumers of the metals ranging from construction, manufacturers of auto, aircrafts and machinery to beverage producers, worried that the higher tariffs will inflate their manufacturing costs. This will make them less competitive in exports market and many have warned that could cut into profits and ultimately spur layoffs.
Will the Tariff Hurt Machinery Stocks?
Steel and aluminum are intermediate goods and thus the imposition of tariff will adversely affect other manufacturers and hurt margins. Also retaliation by U.S. trading partners could hurt companies more reliant on overseas revenues. Another major concern is that U.S. farm exports could be hit hard by the retaliatory policies of steel-exporting countries. This further exacerbates the troubles of farm equipment makers, which have been battling sluggish domestic agricultural demand for the past few years.
Caterpillar Inc.CAT , the world's largest manufacturer of construction and mining equipment, sells more than half of its machines outside the United States. Per the Director of investor relations, Amy Campbell, these tariffs could hike not only imported but also domestic steel prices, putting the company at a disadvantage against its non-U.S. competitors.
As it is, Caterpillar's supply costs rose at their quickest pace in a year's time in quarter ended December. The company is still assessing what impact the current tariff hike would have on its supply costs going forward. The company has been using long-term supply contracts which could be a safeguard against increased costs for six months at most.
Another major player in the sector, Deere & CompanyDE , one of the world's foremost producers of agricultural equipment as well as a leading manufacturer of construction, forestry, and commercial and consumer equipment will be affected by this move. The annual increase in Deere's costs in the latest quarter has been the steepest in at least five quarters.
Caterpillar and Deere have both substantially improved business model delivering better-than-expected margin, earnings, and cash flow performance despite weak mining and agricultural conditions over the past few years. Efforts to lower costs through consolidation or closure of facilities and reduction of workforce helped sustain margins. These mammoths will be able to absorb the higher costs considering that the proportion of the higher steel costs is much lower considering they are earnings billions in profits. They will be able to raise prices to recover the higher input costs and deliver strong margins, albeit with a potential lag of a quarter or two.
However, smaller players like The Manitowoc Company, Inc.MTW , Terex CorporationTEX with lower pricing power than Caterpillar and Deere will be hit hard by the policy. Manitowoc is touted to take the biggest hit among the manufacturing companies. The crane manufacturer has been incurring losses, struggling with lackluster demand for its products. It will be difficult for the company to raise prices to combat raw material inflation.
Terex Corporation's President and CEO John Garrison sent out a letter explaining "the impact of the rising cost of steel is too large and too sudden" for the company to absorb. The company is adding a steel cost surcharge on its equipment which will cover a portion of the cost increases and will remain separate and transparent from its base prices.
Caterpillar flaunts a Zacks Rank #1 (Strong Buy) while Deere carries a Zacks Rank #2 (Buy). Terex and Manitowoc both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
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
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.
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 is a bid to reinforce the American steel and aluminum industries which had long been reeling under the onslaught of cheap imports and suffered significant reduction in production and employment. Caterpillar and Deere have both substantially improved business model delivering better-than-expected margin, earnings, and cash flow performance despite weak mining and agricultural conditions over the past few years. On Mar 8, President Donald Trump implemented a tariff of 25% on steel imports and 10% on aluminum imports from all countries except Canada and Mexico to counter an "assault on the country" by foreign competitors.
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Taking the scenario into consideration, the Commerce Department recommended that President Trump take action to protect the long-term viability of the nation's steel and aluminum industries. 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. On Mar 8, President Donald Trump implemented a tariff of 25% on steel imports and 10% on aluminum imports from all countries except Canada and Mexico to counter an "assault on the country" by foreign competitors.
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Relief for Steel & Aluminium Industry, Concern for Others Per the recommendation of the Commerce Department, the imposition of tariff on imports would increase domestic steel production from its present capacity of 73% to approximately an 80% operating rate and for aluminum it is likely to rise from 48% to 80%. 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. On Mar 8, President Donald Trump implemented a tariff of 25% on steel imports and 10% on aluminum imports from all countries except Canada and Mexico to counter an "assault on the country" by foreign competitors.
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In fact, U.S. steel imports were nearly four times the company's exports, and that aluminum imports had risen to 90% of total demand for primary aluminum. These mammoths will be able to absorb the higher costs considering that the proportion of the higher steel costs is much lower considering they are earnings billions in profits. On Mar 8, President Donald Trump implemented a tariff of 25% on steel imports and 10% on aluminum imports from all countries except Canada and Mexico to counter an "assault on the country" by foreign competitors.
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2f852447-3511-4244-a7e2-f9a7e0dd01d2
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722072.0
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2018-03-09 00:00:00 UTC
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Friday's ETF with Unusual Volume: MOO
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https://www.nasdaq.com/articles/fridays-etf-unusual-volume-moo-2018-03-09
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The Agribusiness ETF is seeing unusually high volume in afternoon trading Friday, with over 203,000 shares traded versus three month average volume of about 82,000. Shares of MOO were up about 1.3% on the day.
Components of that ETF with the highest volume on Friday were Bunge Limited, trading off about 4% with over 3.0 million shares changing hands so far this session, and Archer-Daniels-Midland, up about 0.2% on volume of over 2.3 million shares. Deere is the component faring the best Friday, up by about 3.5% on the day.
VIDEO: Friday's ETF with Unusual Volume: MOO
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 Agribusiness ETF is seeing unusually high volume in afternoon trading Friday, with over 203,000 shares traded versus three month average volume of about 82,000. VIDEO: Friday's ETF with Unusual Volume: MOO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere is the component faring the best Friday, up by about 3.5% on the day.
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The Agribusiness ETF is seeing unusually high volume in afternoon trading Friday, with over 203,000 shares traded versus three month average volume of about 82,000. VIDEO: Friday's ETF with Unusual Volume: MOO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere is the component faring the best Friday, up by about 3.5% on the day.
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The Agribusiness ETF is seeing unusually high volume in afternoon trading Friday, with over 203,000 shares traded versus three month average volume of about 82,000. VIDEO: Friday's ETF with Unusual Volume: MOO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere is the component faring the best Friday, up by about 3.5% on the day.
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The Agribusiness ETF is seeing unusually high volume in afternoon trading Friday, with over 203,000 shares traded versus three month average volume of about 82,000. VIDEO: Friday's ETF with Unusual Volume: MOO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere is the component faring the best Friday, up by about 3.5% on the day.
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983b7273-0743-4cdf-951d-6ec2d89224c4
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722073.0
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2018-03-09 00:00:00 UTC
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CAT or DE: Which Industrial Stock to Bet on Post Earnings?
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DE
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https://www.nasdaq.com/articles/cat-or-de%3A-which-industrial-stock-to-bet-on-post-earnings-2018-03-09
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The fourth-quarter verdict for the Industrial Products sector is out, with all the S&P 500 participants having reported their numbers. The sector's impressive 34.8% earnings growth made it one of the nine Zacks Sectors to deliver double-digit growth in earnings. This momentum is expected to continue in 2018 as well. Per our projections, the Industrial Products sector's earnings are anticipated to register 23.7% growth in first-quarter 2018 followed by 22.8% in the second quarter, 17.7% in the third quarter and 15% in the fourth quarter. (Read more: A Very Positive Earnings Picture )
We note that the sector is currently placed at the top 13% out of the total 16 Zacks Sectors. (To learn more visit: About Zacks Sector Rank ).
In this context, we narrow the focus on two industrial bigwigs, Caterpillar Inc.CAT and Deere & CompanyDE . Caterpillar, with a market capitalization of $91.8 billion, is the world's largest manufacturer of construction and mining equipment and also dabbles in agricultural equipment. Deere, with a market capitalization of $52.1 billion, is the one of the world's foremost producers of agricultural equipment as well as a leading manufacturer of construction, forestry, and commercial and consumer equipment.
While Deere currently boasts a Zacks Rank #1 (Strong Buy), Caterpillar carries a Zacks Rank #2 (Buy). We pit these two players against each other on certain metrics to see which stock is better positioned in terms of fundamentals. You can see the complete list of today's Zacks #1 Rank stocks here .
Price Performance
Over the last year, the two stocks under consideration have significantly outpaced S&P 500's performance of 21.4%. While the Industrial Products sector has advanced 15.2%, Caterpillar has soared 66.4%. Meanwhile, Deere's shares have also performed better than the sector, with a price appreciation of 46.5%. However, Deere's gain failed to match Caterpillar.
Valuation
The most appropriate ratio to evaluate these two industrials stocks is EV/EBITDA. This metric is usually used to compare two stocks within the same industry or sector. It is superior to other metrics such as P/E because it is not affected by the different capital structures of the two companies. Further, EV/EBITDA does not include the impact of non-cash expenses.
Both Caterpillar and Deere are underpriced, with EV/EBITDA ratios of 10.1 and 12.2, respectively, compared with the Industrial Products Sector's EV/EBITDA ratio of 14.4. Clearly, Caterpillar is cheaper and scores on this front.
Inventory Turnover Ratio
Inventory turnover ratio evaluates the efficiency of an industrial company's manufacturing process. A high inventory turnover ratio ensures that the company is able to manage its inventory effectively to generate revenues and avoid wastage. This is one of the most important financial ratios, which is widely used by industrial companies to measure their ability to utilize their inventories.
In the last year, the inventory turnover ratio for Caterpillar and Deere has been 3.2% and 4.4%, respectively, lower than the sector's level of 4.8%. Deere has registered better inventory turnover than its competitor.
Return on Assets
Return on assets ("ROA") is one of the key financial ratios for industrials as they rely heavily on inventory to create revenues. An above-average ROA denotes that the company in question is generating earnings by effectively managing its assets.
Coming to Caterpillar and Deere, ROA for the trailing 12-months ("TTM") is 5.3% and 3.8%, respectively, which are below the industrial sector's level of 5.8%. This round easily goes to Caterpillar.
Dividend Yield
Over a year's time, the dividend yield for Caterpillar has been higher than both the broader sector and Deere. While the broader sector offered a yield of 1.6%, Caterpillar returned 2.0%. In comparison, Deere has a dividend yield of 1.5%.
Net Margins
Comparing the net margin trends of the two companies, Caterpillar has a trailing 12-months net margin of 9.0%, higher than the sector's 8.3%. Deere falls behind both Caterpillar and the sector with a trailing 12-months net margin of 7.7%.
Last Reported Quarter Performance, Guidance
Caterpillar delivered an impressive surge of 160% year over year in its fourth-quarter 2017 (ended Dec 31 2017) adjusted earnings per share to $2.16. Earnings also surpassed the Zacks Consensus Estimate by a margin of 22%. The better-than-expected performance was due to improved end-user demand and disciplined cost-control efforts.
Driven by strong order rates, lean dealer inventories, increasing backlog and expectation of higher sales volume, the company has initiated fiscal 2018 earnings per guidance range of $8.25-$9.25. This reflects a 27% year-over-year rise at the mid-point reflecting higher sales volume across its three primary segments. (Read more: Caterpillar Gains on Q4 Earnings Beat, Upbeat '18 View )
Deere's first-quarter fiscal 2018 (ended Jan 28, 2018) earnings soared around 111% year over year to $1.31 per share, a positive earnings surprise of 13%. Results were driven by improvement in agricultural and construction equipment markets.
For fiscal 2018, Deere expects net sales to increase about 25% year over year adjusted net income to be about $2.85 billion (excluding the impact of the tax reform). (Read more: Deere Q1 Earnings Beat on Rising Demand, View Upbeat )
Earnings Estimate Revisions
The Zacks Consensus Estimates for both Caterpillar and Deere have been revised upward, following their respective earnings releases. The Zacks Consensus Estimate for Caterpillar for both fiscal 2018 and fiscal 2019 has moved up 1%. The Zacks Consensus Estimate for Deere for both fiscal 2018 and fiscal 2019 has surged 17% and 14%, respectively.
Earnings Projections
The Zacks Consensus Estimate for Caterpillar for fiscal 2018 is pegged at $9.14, reflecting a year-over-year growth of 32.85%. The earnings estimate for Deere for the fiscal 2018 is pegged at $9.53, depicting a 42.7% year-over-year rise.
Earnings Surprise History
Considering a more comprehensive earnings history, both Caterpillar and Deere delivered positive surprises in the trailing four quarters. However, Caterpillar stands out with an average positive earnings surprise of 51.6%, better than Deere's average beat of 17.3%.
Long-Term Growth Expectations
In terms of long-term earnings growth expectations, Caterpillar scores above Deere with a projection of 10.3% compared with the latter's 8.2%.
Both the companies have substantially improved business model delivering better-than-expected margin, earnings, and cash flow performance despite a weak mining and agricultural conditions. Efforts to lower costs helped sustain margins. Both have witnessed strong order activity lately. In North America, continued improvement in residential and non-residential construction as well as revival in infrastructure demand will drive revenues. President Trump's plans of big spending in infrastructure would be a catalyst for both Caterpillar and Deere.
Global economic momentum and increasing commodity prices is restoring miners' profitability and they are resuming capital spending. This bodes well for demand for Caterpillar's mining equipment as demand for new equipment also grows with an extension of existing mines. Caterpillar along with other players in the same industry like Terex Corporation TEX and Komatsu Ltd. KMTUY will benefit from these improving trends in mining.
Conditions in the farm equipment industry are improving as farmers are replacing equipment based on need. Consequently, Deere's earnings have upside potential. Also, Precision Agriculture initiatives will help the company outpace competitors and deliver margin improvement in the long run.
However, President's Trump's plan to impose import duties of 25% on steel could dent margins of both the companies.
Conclusion
These two stocks have grabbed the spotlight with striking performances in their earnings results, estimate revisions as well as surprise history. However, our comparative analysis shows that the scales are currently tipped in Caterpillar's favor when considering share price performance, valuation, ROA, dividend yield, leverage, net margins and long-term growth expectations. Deere scores on inventory turnover, earnings estimate revisions and projections for fiscal 2018.
On comparison, Caterpillar is clearly a better stock as of now.
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Komatsu Ltd. (KMTUY): 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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Driven by strong order rates, lean dealer inventories, increasing backlog and expectation of higher sales volume, the company has initiated fiscal 2018 earnings per guidance range of $8.25-$9.25. However, our comparative analysis shows that the scales are currently tipped in Caterpillar's favor when considering share price performance, valuation, ROA, dividend yield, leverage, net margins and long-term growth expectations. Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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(Read more: Caterpillar Gains on Q4 Earnings Beat, Upbeat '18 View ) Deere's first-quarter fiscal 2018 (ended Jan 28, 2018) earnings soared around 111% year over year to $1.31 per share, a positive earnings surprise of 13%. (Read more: Deere Q1 Earnings Beat on Rising Demand, View Upbeat ) Earnings Estimate Revisions The Zacks Consensus Estimates for both Caterpillar and Deere have been revised upward, following their respective earnings releases. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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(Read more: Caterpillar Gains on Q4 Earnings Beat, Upbeat '18 View ) Deere's first-quarter fiscal 2018 (ended Jan 28, 2018) earnings soared around 111% year over year to $1.31 per share, a positive earnings surprise of 13%. (Read more: Deere Q1 Earnings Beat on Rising Demand, View Upbeat ) Earnings Estimate Revisions The Zacks Consensus Estimates for both Caterpillar and Deere have been revised upward, following their respective earnings releases. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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(Read more: Caterpillar Gains on Q4 Earnings Beat, Upbeat '18 View ) Deere's first-quarter fiscal 2018 (ended Jan 28, 2018) earnings soared around 111% year over year to $1.31 per share, a positive earnings surprise of 13%. (Read more: Deere Q1 Earnings Beat on Rising Demand, View Upbeat ) Earnings Estimate Revisions The Zacks Consensus Estimates for both Caterpillar and Deere have been revised upward, following their respective earnings releases. The sector's impressive 34.8% earnings growth made it one of the nine Zacks Sectors to deliver double-digit growth in earnings.
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1b464438-c648-4cb6-8807-95b8d456c164
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722074.0
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2018-03-09 00:00:00 UTC
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Noteworthy Friday Option Activity: FLR, DE, JPM
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-flr-de-jpm-2018-03-09
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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 Fluor Corp. (Symbol: FLR), where a total of 9,557 contracts have traded so far, representing approximately 955,700 underlying shares. That amounts to about 62.7% of FLR's average daily trading volume over the past month of 1.5 million shares. Particularly high volume was seen for the $62.50 strike call option expiring April 20, 2018 , with 4,602 contracts trading so far today, representing approximately 460,200 underlying shares of FLR. Below is a chart showing FLR's trailing twelve month trading history, with the $62.50 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 17,544 contracts, representing approximately 1.8 million underlying shares or approximately 58.2% of DE's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $152.50 strike put option expiring March 16, 2018 , with 2,446 contracts trading so far today, representing approximately 244,600 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $152.50 strike highlighted in orange:
And JPMorgan Chase & Co (Symbol: JPM) options are showing a volume of 82,439 contracts thus far today. That number of contracts represents approximately 8.2 million underlying shares, working out to a sizeable 50.7% of JPM's average daily trading volume over the past month, of 16.2 million shares. Especially high volume was seen for the $115 strike call option expiring March 16, 2018 , with 5,819 contracts trading so far today, representing approximately 581,900 underlying shares of JPM. Below is a chart showing JPM's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for FLR options , DE options , or JPM 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 $62.50 strike call option expiring April 20, 2018 , with 4,602 contracts trading so far today, representing approximately 460,200 underlying shares of FLR. Especially high volume was seen for the $152.50 strike put option expiring March 16, 2018 , with 2,446 contracts trading so far today, representing approximately 244,600 underlying shares of DE. Especially high volume was seen for the $115 strike call option expiring March 16, 2018 , with 5,819 contracts trading so far today, representing approximately 581,900 underlying shares of JPM.
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Below is a chart showing FLR's trailing twelve month trading history, with the $62.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 17,544 contracts, representing approximately 1.8 million underlying shares or approximately 58.2% of DE's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $152.50 strike put option expiring March 16, 2018 , with 2,446 contracts trading so far today, representing approximately 244,600 underlying shares of DE. Especially high volume was seen for the $115 strike call option expiring March 16, 2018 , with 5,819 contracts trading so far today, representing approximately 581,900 underlying shares of JPM.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Fluor Corp. (Symbol: FLR), where a total of 9,557 contracts have traded so far, representing approximately 955,700 underlying shares. Below is a chart showing FLR's trailing twelve month trading history, with the $62.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 17,544 contracts, representing approximately 1.8 million underlying shares or approximately 58.2% of DE's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $115 strike call option expiring March 16, 2018 , with 5,819 contracts trading so far today, representing approximately 581,900 underlying shares of JPM.
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Below is a chart showing FLR's trailing twelve month trading history, with the $62.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 17,544 contracts, representing approximately 1.8 million underlying shares or approximately 58.2% of DE's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $152.50 strike put option expiring March 16, 2018 , with 2,446 contracts trading so far today, representing approximately 244,600 underlying shares of DE. Especially high volume was seen for the $115 strike call option expiring March 16, 2018 , with 5,819 contracts trading so far today, representing approximately 581,900 underlying shares of JPM.
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2de87104-8979-453b-a039-b060eb67c6a9
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722075.0
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2018-03-05 00:00:00 UTC
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Deere (DE) on Acquisition Spree, Inks Deal to Buy King Agro
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DE
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https://www.nasdaq.com/articles/deere-de-on-acquisition-spree-inks-deal-to-buy-king-agro-2018-03-05
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nan
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nan
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Deere & CompanyDE , the world's largest farm equipment manufacturer, has recently entered into a definitive agreement to acquire King Agro, a privately-held manufacturer of carbon fiber technology products. Financial terms of the transaction have not been disclosed.
King Agro is a family-owned business with headquarters at Valencia, Spain, and a production facility in Campana, Argentina. In agriculture, the company has targeted innovative designs that improve productivity and lower costs.
The Deere - King Agro alliance dates back to 2015 when both companies decided to develop and distribute carbon fiber booms for the John Deere application equipment in agriculture. The deal offered significant advantages of carbon fiber's versatility, strength and durability in self-propelled spraying equipment to growers.
Deere & Company Price
Deere & Company Price | Deere & Company Quote
Post acquisition, Deere's customers will benefit from King Agro's unique knowledge, designs, and expertise in carbon fiber technology. King Agro will retain its brand name, trademark, and commercial relationships post closure of the deal.
Acquisitions to Drive Growth
Deere has been active on the acquisition front, of late. In December 2017, the company acquired the leading global road-construction equipment maker - Wirtgen - for $5.2 billion in cash and debt. This buyout will enable Deere's North America-centric construction business to expand globally and also catapult it to the position of an industry leader in road construction.
In September 2017, Deere acquired Sunnyvale, CA-based Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment. Blue River's technology has aided precision agriculture by shifting farm-management decisions from the field level to the plant level.
Moreover, Deere is poised to gain from higher housing starts in the United States, stabilizing oil prices and strong order activity.
Share Price Performance
Deere has outperformed its industry with respect to price performance in a year's time. The stock has appreciated around 38%, while the industry has recorded growth of 32% during the same time frame.
Zacks Rank and Other Key Picks
Currently, Deere carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the same space include Dover Corporation DOV , W.W. Grainger, Inc. GWW and H&E Equipment Services, Inc. HEES . While, Dover and Grainger sport a Zacks Rank #1 (Strong Buy), H&E Equipment carries the same rank as Deere. You can see the complete list of today's Zacks #1 Rank stocks here .
Dover has a long-term earnings growth rate of 13%. Its shares have rallied 14%, over the past six months.
Grainger has a long-term earnings growth rate of 9.7%. The company's shares have been up 55.8% during the same time frame.
H&E Equipment has a long-term earnings growth rate of 14.4%. The stock has gained 62% in six months' time.
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H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): 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 deal offered significant advantages of carbon fiber's versatility, strength and durability in self-propelled spraying equipment to growers. In September 2017, Deere acquired Sunnyvale, CA-based Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment. Moreover, Deere is poised to gain from higher housing starts in the United States, stabilizing oil prices and strong order activity.
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Deere & CompanyDE , the world's largest farm equipment manufacturer, has recently entered into a definitive agreement to acquire King Agro, a privately-held manufacturer of carbon fiber technology products. Deere & Company Price Deere & Company Price | Deere & Company Quote Post acquisition, Deere's customers will benefit from King Agro's unique knowledge, designs, and expertise in carbon fiber technology. Click to get this free report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): 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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The Deere - King Agro alliance dates back to 2015 when both companies decided to develop and distribute carbon fiber booms for the John Deere application equipment in agriculture. Deere & Company Price Deere & Company Price | Deere & Company Quote Post acquisition, Deere's customers will benefit from King Agro's unique knowledge, designs, and expertise in carbon fiber technology. Click to get this free report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): 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 & CompanyDE , the world's largest farm equipment manufacturer, has recently entered into a definitive agreement to acquire King Agro, a privately-held manufacturer of carbon fiber technology products. Deere & Company Price Deere & Company Price | Deere & Company Quote Post acquisition, Deere's customers will benefit from King Agro's unique knowledge, designs, and expertise in carbon fiber technology. In agriculture, the company has targeted innovative designs that improve productivity and lower costs.
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7625b9d2-5e3a-477a-b8a5-1fb8dd350d89
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722076.0
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2018-03-02 00:00:00 UTC
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Calgon Carbon (CCC) Q4 Earnings and Sales Beat Estimates
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DE
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https://www.nasdaq.com/articles/calgon-carbon-ccc-q4-earnings-and-sales-beat-estimates-2018-03-02
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nan
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Calgon Carbon CorporationCCC swung to profit in fourth-quarter 2017. The company reported net income of $9.4 million or 19 cents per share against a net loss of $5.9 million or 12 cents recorded a year ago.
Barring one-time items, adjusted earnings were 16 cents per share that surpassed the Zacks Consensus Estimate of 14 cents.
Calgon Carbon recorded net sales of $161.5 million in the reported quarter, up around 17.5% year over year. The figure beat the Zacks Consensus Estimate of $158 million.
Full-Year 2017 Highlights
For 2017, Calgon Carbon recorded net income of $21.1 million or 42 cents per share compared with $13.8 million or 27 cents recorded a year ago.
Net sales jumped roughly 20.5% to $619.8 million.
Calgon Carbon Corporation Price, Consensus and EPS Surprise
Calgon Carbon Corporation Price, Consensus and EPS Surprise | Calgon Carbon Corporation Quote
Segment Performance
Revenues from the company's Activated Carbon segment increased 14.5% year over year to $143.9 million in the fourth quarter. The results were mainly driven by increase in New Business as well as gains in legacy business resulting from increased food and beverage, environmental air and specialty end market demand in Asia and higher potable water end market demand in North America and Europe.
The Alternative Material segment's revenues surged around 80.3% to $13.7 million as the perlite filtration and diatomaceous earth media products of New Business contributed significantly during the quarter.
Sales from the Advanced Water Purification segment declined slightly to $4.1 million from $3.9 million a year ago.
Financial Position
Calgon Carbon ended 2017 with cash and cash equivalents of roughly $42.3 million, up around 11.6% year over year.
Long-term debt was up roughly 3.9% to $228.5 million.
Outlook
Calgon Carbon stated that despite facing a slow and challenging market, the company was able to reach a number of achievements that will benefit it moving ahead. These include completion of the integration of the New Business and exceeding sales target of $100 million for 2017 and winning a $13.2 million water treatment contract for the removal of the 1,2,3-TCP contaminant in California. The company is also executing a number of actions to improve profitability such as business realignment strategies and disposing previously idled assets in the United Kingdom.
Notably, Calgon Carbon has also reached an agreement to merge with Kuraray of Japan and expects to complete the deal in the first quarter of 2018.
Price Performance
Shares of Calgon Carbon have lost 0.5% over the last three months, outperforming the 2.1% decline of its industry .
Zacks Rank & Stocks to Consider
Calgon Carbon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industrial products space are Axon Enterprise, Inc. AAXN , Encore Wire Corporation WIRE and Deere & Company DE , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Axon has an expected long-term earnings growth rate of 25%. Its shares have moved up 73.5% over the past six months.
Encore Wire has an expected long-term earnings growth rate of 10%. Its shares have rallied 20% over the last six months.
Deere has an expected long-term earnings growth rate of 8.2%. Its shares have soared 35.1% over the last six months.
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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
Encore Wire Corporation (WIRE): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Calgon Carbon Corporation (CCC): Free Stock Analysis Report
TASER International, Inc. (AAXN): 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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Outlook Calgon Carbon stated that despite facing a slow and challenging market, the company was able to reach a number of achievements that will benefit it moving ahead. Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. The company reported net income of $9.4 million or 19 cents per share against a net loss of $5.9 million or 12 cents recorded a year ago.
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Some better-ranked stocks in the industrial products space are Axon Enterprise, Inc. AAXN , Encore Wire Corporation WIRE and Deere & Company DE , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Calgon Carbon Corporation (CCC): Free Stock Analysis Report TASER International, Inc. (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. The company reported net income of $9.4 million or 19 cents per share against a net loss of $5.9 million or 12 cents recorded a year ago.
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Full-Year 2017 Highlights For 2017, Calgon Carbon recorded net income of $21.1 million or 42 cents per share compared with $13.8 million or 27 cents recorded a year ago. Click to get this free report Encore Wire Corporation (WIRE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Calgon Carbon Corporation (CCC): Free Stock Analysis Report TASER International, Inc. (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. The company reported net income of $9.4 million or 19 cents per share against a net loss of $5.9 million or 12 cents recorded a year ago.
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Calgon Carbon recorded net sales of $161.5 million in the reported quarter, up around 17.5% year over year. The company reported net income of $9.4 million or 19 cents per share against a net loss of $5.9 million or 12 cents recorded a year ago. Full-Year 2017 Highlights For 2017, Calgon Carbon recorded net income of $21.1 million or 42 cents per share compared with $13.8 million or 27 cents recorded a year ago.
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5b86129b-aa56-47f8-9fb5-e47701db76df
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722077.0
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2018-03-02 00:00:00 UTC
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Noteworthy Friday Option Activity: DE, PANW, SIEN
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-de-panw-sien-2018-03-02
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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 Deere & Co. (Symbol: DE), where a total volume of 21,992 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 75.7% of DE's average daily trading volume over the past month, of 2.9 million shares. Particularly high volume was seen for the $165 strike call option expiring June 15, 2018 , with 3,393 contracts trading so far today, representing approximately 339,300 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange:
Palo Alto Networks, Inc (Symbol: PANW) options are showing a volume of 12,743 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 68% of PANW's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $182.50 strike call option expiring March 16, 2018 , with 1,560 contracts trading so far today, representing approximately 156,000 underlying shares of PANW. Below is a chart showing PANW's trailing twelve month trading history, with the $182.50 strike highlighted in orange:
And Sientra Inc (Symbol: SIEN) options are showing a volume of 2,255 contracts thus far today. That number of contracts represents approximately 225,500 underlying shares, working out to a sizeable 66.6% of SIEN's average daily trading volume over the past month, of 338,500 shares. Especially high volume was seen for the $17.50 strike call option expiring July 20, 2018 , with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of SIEN. Below is a chart showing SIEN's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
For the various different available expirations for DE options , PANW options , or SIEN 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 $165 strike call option expiring June 15, 2018 , with 3,393 contracts trading so far today, representing approximately 339,300 underlying shares of DE. Especially high volume was seen for the $182.50 strike call option expiring March 16, 2018 , with 1,560 contracts trading so far today, representing approximately 156,000 underlying shares of PANW. Especially high volume was seen for the $17.50 strike call option expiring July 20, 2018 , with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of SIEN.
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That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 68% of PANW's average daily trading volume over the past month, of 1.9 million shares. That number of contracts represents approximately 225,500 underlying shares, working out to a sizeable 66.6% of SIEN's average daily trading volume over the past month, of 338,500 shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 21,992 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 million underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 21,992 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $165 strike call option expiring June 15, 2018 , with 3,393 contracts trading so far today, representing approximately 339,300 underlying shares of DE. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 68% of PANW's average daily trading volume over the past month, of 1.9 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 21,992 contracts has been traded thus far today, a contract volume which is representative of approximately 2.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number of contracts represents approximately 225,500 underlying shares, working out to a sizeable 66.6% of SIEN's average daily trading volume over the past month, of 338,500 shares. Below is a chart showing SIEN's trailing twelve month trading history, with the $17.50 strike highlighted in orange: For the various different available expirations for DE options , PANW options , or SIEN options , visit StockOptionsChannel.com.
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4d4df6bc-bdc2-455f-a60c-c7f00d390a39
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722078.0
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2018-03-02 00:00:00 UTC
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Analyst Picks: 2 Heavy Industry Stocks to Buy, and 1 to Sell
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DE
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https://www.nasdaq.com/articles/analyst-picks-2-heavy-industry-stocks-buy-and-1-sell-2018-03-02
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nan
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nan
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Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
At long last, President Trump announced his infrastructure plan last month -- and at $1.5 trillion in total value, it's about 50% bigger than we had been led to expect . Not everyone believes this plan will come to pass -- indeed, two days ago, a Bloomberg columnist voiced doubt after Senate Majority Whip John Cornyn demurred that Congress simply doesn't have time to address it this year.
But what if the plan does come to pass? In a move that should make it easier to keep an eye on the industry, and that could set it up to pick winners and losers as the infrastructure bill's prospects firm up, investment banker Morgan Stanley announced a whole series of picks this morning in the heavy industry space -- everything from truck makers to earth movers.
Here are two of the heavy industry stocks Morgan Stanley thinks you should buy, and one they'd suggest you sell.
Buying Caterpillar
Beginning with the big name in the sector, Morgan Stanley rated shares of Caterpillar (NYSE: CAT) overweight and assigned the stock a $185 price target, as reported today on TheFly.com . If the analyst is right about that, investors in Caterpillar stock could potentially earn a 23% profit off of today's prices, and collect a tidy 1.9% dividend yield on top of that -- making for a nearly 25% total return over the next 12 months.
Most analysts who follow Caterpillar see the company posting strong, steady 10% annual earnings growth over the next five years, and Morgan Stanley appears to be broadly in agreement with that view. According to the analyst, the global economy is continuing to recover from its recent commodities slump, and key end markets are also recovering. Combined with channel checks that show inventories of heavy machinery are now "right-sized," Caterpillar should be able to grow its revenue at the same time as it expands its profit margin -- a good recipe for earnings growth so long as the recovery continues.
And buying Deere, too
Morgan Stanley is also a fan of Caterpillar rival Deere & Company (NYSE: DE) , albeit more for that company's flagship agricultural machinery business ($20.2 billion in annual sales) than for its much smaller construction and forestry unit ($5.7 billion).
Most analysts on Wall Street see much more limited growth potential for Deere than for Caterpillar -- 5% projected long-term earnings growth, versus Caterpillar's 10%, according to analysts surveyed by S&P Global Market Intelligence . But Morgan Stanley believes Deere's profits will be lifted by the North American agricultural machinery "replacement cycle." The analyst is also hoping to see corn and soybean prices rebound, putting more money in farmers' pockets, and enabling them to spend more buying tractors and combines from Deere.
The analyst rates Deere overweight as well, and assigns the stock a $195 price target -- 24% above current prices, albeit with a smaller dividend than Caterpillar pays (just 1.5%).
But selling Paccar?
Sadly for investors in truck maker Paccar (NASDAQ: PCAR) , their stock gets no such love from Morgan Stanley. One of the few stocks the analyst rated underweight this morning, Morgan Stanley worries that Paccar's sales of Class 8 tractors (the truck part of a tractor-trailer) will peak this year within the NAFTA trade region, and could begin to slip as early as 2019.
It's worth pointing out that this is most decidedly not the consensus view on Wall Street, where analyst estimates on average predict Paccar's profits will grow even faster than Caterpillar's, and much faster than Deere's -- 12% annually over the next five years, in fact. Nonetheless, Morgan Stanley highlights an emerging threat from electric trucks such as the all-electric semi that Tesla unveiled late last year. That's a potential disruptor in the trucking business, and contributes to Morgan Stanley's pessimism about Paccar.
The analyst is therefore counseling that investors sell Paccar, and sees little chance of share price appreciation this year, predicting Paccar's price will be about $69 a share a year from now.
How investors should react
From a P/E investor's perspective, I have to say that Morgan Stanley's picks (and pan) this morning seem a bit curious. At 35 times earnings (and projected 5% growth), Deere stock hardly looks cheap enough to inspire a buy rating. Caterpillar stock, at more than 116 times earnings , appears to be wildly overpriced. In contrast, Paccar, at 14 times earnings, a 12% projected growth rate, and with a modest 1.4% dividend yield, appears at first glance the best bargain of the bunch.
That being said, closer examination of the companies' financials reveal that with just $869 million in trailing free cash flow, Paccar is actually generating cash profit at barely half the rate the stock's $1.7 billion in reported earnings would suggest, and so is arguably more expensive than meets the eye.
Deere, pricey from a P/E perspective, looks even more so when valued on its free cash flow -- of which it generated none in 2017, burning nearly $1 billion instead.
In contrast, Caterpillar generated positive free cash flow of $3.4 billion last year -- several times its reported $754 million in net income. At a price-to-free-cash-flow ratio of 26, Caterpillar stock is arguably actually the cheapest of the lot, despite its frighteningly high P/E ratio. I don't know that I'd say Caterpillar is cheap enough to buy based on growth expectations of only 10%, but I do know that it's the single Morgan Stanley recommendation today that I'm most inclined to agree with.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends TSLA. The Motley Fool owns shares of Paccar. 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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Today, we're taking one high-profile Wall Street pick and putting it under the microscope... At long last, President Trump announced his infrastructure plan last month -- and at $1.5 trillion in total value, it's about 50% bigger than we had been led to expect . One of the few stocks the analyst rated underweight this morning, Morgan Stanley worries that Paccar's sales of Class 8 tractors (the truck part of a tractor-trailer) will peak this year within the NAFTA trade region, and could begin to slip as early as 2019. Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more.
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The analyst rates Deere overweight as well, and assigns the stock a $195 price target -- 24% above current prices, albeit with a smaller dividend than Caterpillar pays (just 1.5%). Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. Today, we're taking one high-profile Wall Street pick and putting it under the microscope... At long last, President Trump announced his infrastructure plan last month -- and at $1.5 trillion in total value, it's about 50% bigger than we had been led to expect .
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Most analysts on Wall Street see much more limited growth potential for Deere than for Caterpillar -- 5% projected long-term earnings growth, versus Caterpillar's 10%, according to analysts surveyed by S&P Global Market Intelligence . One of the few stocks the analyst rated underweight this morning, Morgan Stanley worries that Paccar's sales of Class 8 tractors (the truck part of a tractor-trailer) will peak this year within the NAFTA trade region, and could begin to slip as early as 2019. Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more.
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And buying Deere, too Morgan Stanley is also a fan of Caterpillar rival Deere & Company (NYSE: DE) , albeit more for that company's flagship agricultural machinery business ($20.2 billion in annual sales) than for its much smaller construction and forestry unit ($5.7 billion). Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. Today, we're taking one high-profile Wall Street pick and putting it under the microscope... At long last, President Trump announced his infrastructure plan last month -- and at $1.5 trillion in total value, it's about 50% bigger than we had been led to expect .
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4a3d3ed8-783c-4b92-8ecd-b21e1da9e18e
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722079.0
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2018-03-01 00:00:00 UTC
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Caterpillar Poised For a Better 2018 on Rising Mining Spend
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DE
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https://www.nasdaq.com/articles/caterpillar-poised-for-a-better-2018-on-rising-mining-spend-2018-03-01
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nan
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nan
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Caterpillar Inc.CAT seems positioned for an improved 2018 backed by its positive end markets namely construction, mining and energy as well as the benefits of substantive cost-cutting undertaken over the past few years.
A Turnaround Performance in 2017
Caterpillar reported year-over-year improvement in both the top and bottom line for the first time in 10 quarters in the first quarter of 2017. The company sustained the momentum in the rest of the quarters as well, aided by continued strength in the Asia Pacific region, improvement in the construction sector as well as its relentless focus on cutting costs.
Retail sales growth entered the positive trajectory in March following an unprecedented stretch of declines for 51 months and has shown significant improvement ever since. Caterpillar finished the year with an impressive 160% improvement in earnings in the fourth quarter of 2017 owing to improved end-user demand across all regions and most end markets.
Consequently, it can be said that 2017 was the comeback year for the mining and construction equipment behemoth. Its shares notched a 70% gain through the year. It remains to be seen whether the company can better or even repeat the feat in 2018.
Retail Sales on an Upward Trajectory
Caterpillar reported a rise of 34% in global retail sales for the three months ended January 2018, at levels last seen in August 2011. This was driven by improvement across all regions. Sales in Asia Pacific surged 51%. The region has been a consistent contributor for the company since it posted the first positive reading in August 2016. Latin America registered growth of 49% in October and Europe, Africa and Middle East ("EAME") sales were up 31%. North America sales also went up 23%.
Within Machines, Resource Industries and Construction Industries reported positive gains for the seventh and 12th consecutive months, respectively. Resource Industries segment delivered an impressive 49% growth in December sales and sales growth in the Construction Industries segment went up 30%. Sales in the Energy & Transportation segment rose 16%.
This upbeat numbers instill optimism for an improved performance through the rest of the year.
2018 View Upbeat
Strong sales momentum resulting from strong order rates, lean dealer inventories and an increasing backlog bode well for an improved 2018 performance. Given these factors, along with positive economic indicators globally and many of the company's end markets, Caterpillar initiated adjusted EPS guidance range of $8.25-$9.25 for fiscal 2018. The mid-point of the guidance range reflects 27% year-over-year growth.
Resource Industries Likely to Lead Growth This Year
While the Construction Industries is expected to grow in 2018, anticipated seasonality of sales in China will slow down growth in the latter part of the year. Most other APAC countries are expected to grow, attributed to investments in infrastructure. In North America, continued improvement in residential and non-residential construction as well as revival in infrastructure demand will drive revenues. President Trump's plans of big spending in infrastructure would be a catalyst as major companies like Caterpillar and Deere & Company DE are expected to gain from the big spending in infrastructure.
For the Energy & Transportation segment, sales into Oil and Gas applications are likely to increase in 2018, led by reciprocating engines for gas compression and well-servicing activity in North America. Sales to Transportation sector will benefit from recent acquisitions in rail services.
We believe this year, the Resource Industries segment is poised to be the catalyst. Global economic momentum and increasing commodity prices is restoring miners' profitability and they are resuming capital spending. This bodes well for the segment. Rebuild and aftermarket demand should continue as fleet utilization increases. Demand for new equipment also grows with an extension of existing mines. Caterpillar along with other players in the same industry like Terex Corporation TEX and Komatsu Ltd. KMTUY will benefit from these improving trends in mining.
Further, the recently passed tax reform is likely to lead to higher spending for Caterpillar's customers.
Restructuring Actions Will Boost Margins
In September 2015, Caterpillar set out with significant restructuring and cost reduction initiative, with actions expected through 2018. Once fully implemented, the plan would lower annual operating costs by about $1.5 billion. This includes the consolidation or closure of more than 30 facilities and reduction of workforce by more than 16,000.
Expanded Offerings to Fuel Growth
Caterpillar continues to focus on customers and on the future by continuing to invest in digital capabilities, connecting assets and jobsites along with developing the next generation of more productive and efficient products. The company is preparing factories and suppliers to meet increased demand, while remaining focused on developing a more competitive and flexible cost structure. This should enable it to respond quickly if economic fundamentals change.
The company is in the early stages of implementing its strategy for profitable growth. During 2018, the company will continue to make additional investments in expanded offerings and services important for long-term success. It will use Operating & Execution Model to divert resources to areas that represent the greatest opportunity for return on investments.
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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.
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Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Komatsu Ltd. (KMTUY): Free Stock Analysis Report
Deere & Company (DE): 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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The company sustained the momentum in the rest of the quarters as well, aided by continued strength in the Asia Pacific region, improvement in the construction sector as well as its relentless focus on cutting costs. Retail sales growth entered the positive trajectory in March following an unprecedented stretch of declines for 51 months and has shown significant improvement ever since. Caterpillar Inc.CAT seems positioned for an improved 2018 backed by its positive end markets namely construction, mining and energy as well as the benefits of substantive cost-cutting undertaken over the past few years.
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Resource Industries segment delivered an impressive 49% growth in December sales and sales growth in the Construction Industries segment went up 30%. President Trump's plans of big spending in infrastructure would be a catalyst as major companies like Caterpillar and Deere & Company DE are expected to gain from the big spending in infrastructure. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Resource Industries segment delivered an impressive 49% growth in December sales and sales growth in the Construction Industries segment went up 30%. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Caterpillar Inc.CAT seems positioned for an improved 2018 backed by its positive end markets namely construction, mining and energy as well as the benefits of substantive cost-cutting undertaken over the past few years.
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The company sustained the momentum in the rest of the quarters as well, aided by continued strength in the Asia Pacific region, improvement in the construction sector as well as its relentless focus on cutting costs. Resource Industries segment delivered an impressive 49% growth in December sales and sales growth in the Construction Industries segment went up 30%. Caterpillar Inc.CAT seems positioned for an improved 2018 backed by its positive end markets namely construction, mining and energy as well as the benefits of substantive cost-cutting undertaken over the past few years.
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cf1f1b62-2005-44f9-b4ea-ce788bc2b595
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722080.0
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2018-02-27 00:00:00 UTC
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VYM, BLK, DE, PRU: Large Outflows Detected at ETF
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DE
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https://www.nasdaq.com/articles/vym-blk-de-pru-large-outflows-detected-etf-2018-02-27
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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 Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $40.3 million dollar outflow -- that's a 0.2% decrease week over week (from 245,723,619 to 245,261,385). Among the largest underlying components of VYM, in trading today Blackrock Inc (Symbol: BLK) is trading flat, Deere & Co. (Symbol: DE) is off about 1.1%, and Prudential Financial, Inc. (Symbol: PRU) is up by about 0.9%. For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average:
Looking at the chart above, VYM's low point in its 52 week range is $76.07 per share, with $90.93 as the 52 week high point - that compares with a last trade of $87.51. 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 VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $76.07 per share, with $90.93 as the 52 week high point - that compares with a last trade of $87.51. 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 VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $76.07 per share, with $90.93 as the 52 week high point - that compares with a last trade of $87.51. 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 Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $40.3 million dollar outflow -- that's a 0.2% decrease week over week (from 245,723,619 to 245,261,385).
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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 Vanguard High Dividend Yield ETF (Symbol: VYM) where we have detected an approximate $40.3 million dollar outflow -- that's a 0.2% decrease week over week (from 245,723,619 to 245,261,385). For a complete list of holdings, visit the VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $76.07 per share, with $90.93 as the 52 week high point - that compares with a last trade of $87.51. 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 VYM Holdings page » The chart below shows the one year price performance of VYM, versus its 200 day moving average: Looking at the chart above, VYM's low point in its 52 week range is $76.07 per share, with $90.93 as the 52 week high point - that compares with a last trade of $87.51. 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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ffb86b31-a6d1-4d14-bcb7-3530b4ceb28d
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722081.0
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2018-02-23 00:00:00 UTC
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Is Caterpillar Inc. (CAT) a Buy?
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DE
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https://www.nasdaq.com/articles/caterpillar-inc-cat-buy-2018-02-23
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nan
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nan
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Around this time two years ago, Caterpillar Inc. (NYSE: CAT) was trading at roughly $65. The stock has since stunned the market, more than doubling in value.
The rally appears to have left some investors worried, though, which is why the stock has shed nearly 8% in the past month, as of this writing, mainly on profit booking. You might, however, want to consider this drop an opportunity once you look at Caterpillar's growth prospects and the stock's current valuation.
What fueled Caterpillar stock 's rally
Caterpillar stock ended 2017 with a whopping 70% gain, fueled largely by earnings beats from the company quarter after quarter, to give investors an inkling that they might be underestimating the bellwether's turnaround prospects.
Caterpillar recently reported strong numbers for fiscal year 2017 and topped it up with an encouraging outlook for 2018.
Data source: Caterpillar Inc. Table by author.
One number that stands out in the above table is Caterpillar's operating margin. If you were to dissect the growth in its operating profit last year, nearly 65% of the increase came from higher sales volumes, which confirms an up cycle. Management's aggressive restructuring efforts further helped lower costs and boost margins.
What matters most is that Caterpillar is experiencing a broad-based recovery in sales across all of its businesses: construction industries, resource industries (primarily mining equipment), and energy and transportation. That should make Caterpillar's recovery sustainable. There are two other important points worth noting here:
Caterpillar relies heavily on its dealership network for sales. Dealer inventory increased by $100 million in FY 2017, compared with a decrease of $1.6 billion in 2016. Simply put, dealers are buying fresh equipment from the company in anticipation of strong demand.
Caterpillar's backlog value at the end of the fourth quarter surged $3.7 billion, year over year, to $15.8 billion, with construction and resource industries being the largest contributors.
In short, the recovery in Caterpillar shares reflects growth in the company's sales and profits, and it could be wrong to assume that the stock has run its course. Let me tell you why.
2018: Another strong year in the making
Caterpillar foresees growth in "many end markets" this year and expects to earn $7.75-$8.75 per share in fiscal 2018, backed by higher sales volumes, favorable price realization, and lower restructuring costs, among other things.
That would be a massive jump over Caterpillar's 2017 EPS, but it's important to understand that the growth in the company's profits look exceptionally good right now as it's coming off a very low base, thanks to a severely challenging few years. Growth will gradually taper with every passing year.
Nonetheless, 2018 will likely go down in Caterpillar's history as one of its best years ever in terms of profitability. Let's also not forget that the company's outlook does not include any impact from a potential infrastructure bill. As the world's leading construction equipment manufacturer with a solid brand power, Caterpillar could be one of the biggest beneficiaries when infrastructure spending in the U.S. kicks off.
More importantly, Caterpillar's cash flows should also grow as its profits climb, which is where the stock starts looking like a buy right now.
Caterpillar stock has upside left
A rigorous focus on maintaining its cash flows even during the most challenging times is one of the biggest reasons why Caterpillar could avoid a dividend cut and is so well positioned to ride a recovery.
In each of the past five years, Caterpillar converted more than 100% of its net income into FCF, thanks to efficient working capital (especially inventory) management and prioritization of capital expenditures, in line with the end-market conditions. Compare that with rival Deere (NYSE: DE) , for instance, which was FCF-negative in 2017 and whose FCF conversion rate has been below 50% in each of the past five years.
Interestingly, Caterpillar is trading significantly cheaper than Deere on cash flow metrics, as well as the enterprise value to earnings before interest, tax, depreciation, and amortization ratio (EV/EBITDA), which is a useful metric to value and compare capital-intensive companies.
CAT price to CFO per share (TTM) data by YCharts .
When you combine the potential uptick in Caterpillar's end markets such as mining, oil and gas, and infrastructure, its strong FCF trend, and a dividend yield of 2%, it looks like the stock should offer long-term investors good upside even at current prices.
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Caterpillar wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of February 5, 2018
Neha Chamaria 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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That would be a massive jump over Caterpillar's 2017 EPS, but it's important to understand that the growth in the company's profits look exceptionally good right now as it's coming off a very low base, thanks to a severely challenging few years. When you combine the potential uptick in Caterpillar's end markets such as mining, oil and gas, and infrastructure, its strong FCF trend, and a dividend yield of 2%, it looks like the stock should offer long-term investors good upside even at current prices. You might, however, want to consider this drop an opportunity once you look at Caterpillar's growth prospects and the stock's current valuation.
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What fueled Caterpillar stock 's rally Caterpillar stock ended 2017 with a whopping 70% gain, fueled largely by earnings beats from the company quarter after quarter, to give investors an inkling that they might be underestimating the bellwether's turnaround prospects. You might, however, want to consider this drop an opportunity once you look at Caterpillar's growth prospects and the stock's current valuation. There are two other important points worth noting here: Caterpillar relies heavily on its dealership network for sales.
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What fueled Caterpillar stock 's rally Caterpillar stock ended 2017 with a whopping 70% gain, fueled largely by earnings beats from the company quarter after quarter, to give investors an inkling that they might be underestimating the bellwether's turnaround prospects. Caterpillar stock has upside left A rigorous focus on maintaining its cash flows even during the most challenging times is one of the biggest reasons why Caterpillar could avoid a dividend cut and is so well positioned to ride a recovery. You might, however, want to consider this drop an opportunity once you look at Caterpillar's growth prospects and the stock's current valuation.
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You might, however, want to consider this drop an opportunity once you look at Caterpillar's growth prospects and the stock's current valuation. What fueled Caterpillar stock 's rally Caterpillar stock ended 2017 with a whopping 70% gain, fueled largely by earnings beats from the company quarter after quarter, to give investors an inkling that they might be underestimating the bellwether's turnaround prospects. There are two other important points worth noting here: Caterpillar relies heavily on its dealership network for sales.
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e9def52d-b10a-4ce7-a1c8-02e9c52768ac
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722082.0
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2018-02-20 00:00:00 UTC
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Deere & Company Reaps the Harvest of Growing Demand
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DE
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https://www.nasdaq.com/articles/deere-company-reaps-harvest-growing-demand-2018-02-20
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company (NYSE: DE ) shares had gained more than 50% over the course of the 12 months leading up to Friday's earnings report, setting the stage for a profit-taking tumble from DE stock following the news. But, when all was said and done, the news was too good to let go of the stock now. In fact, Deere & Company stock advanced another 4% following the release of the earnings report.
Too much, and too fast? Probably. That is to say, don't be terribly shocked if the bears push back a little within the next few days. Broadly speaking though, Friday's buyers have good reason to be excited about the company's foreseeable future.
DE Stock Earnings Recap
For its first fiscal quarter of the year, farm and construction implement maker Deere & Company - you may know it better as John Deere - turned $5.97 billion worth of revenue into an operating profit of $1.31 per share of DE stock. The top line was up 27% year-over-year , and the bottom line grew from a comparison of 62 cents per share. Analysts were only calling for earnings of $1.16 per share of Deere & Company stock, but were also modeling revenue of $6.4 billion.
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CEO Samuel Allen commented on the first-quarter numbers. "Deere has continued to experience strong increases in demand for its products as conditions in key markets show further improvement," he said. He added, "Sales gains for the quarter, however, were moderated by bottlenecks in the supply chain and logistical delays in shipping products to our dealers. In line with strengthening conditions, we have raised our sales and adjusted-earnings forecasts for 2018 and have confidence we will be able to fulfill the needs of our customers over the course of the year."
Agricultural machinery revenue of $4.2 billion was up 18% YOY, on increasing demand for such equipment. However, Deere's smaller construction equipment arm saw sales grow 57% to $1.7 billion, partially thanks to the recent acquisition of road equipment company Wirtgen .
Deere & Company hadn't made a priority of construction machinery in the past, ceding much of that business to close-cousin Caterpillar Inc. (NYSE: CAT ). The purchase of Wirtgen , however, suggests a growing interest in that market. Bloomberg Intelligence analyst Karen Ubelhart commented on the shift, "The construction business is low-margin for Deere, so wasn't meaningful to earnings in the past. But now it is."
Looking Ahead for DE Stock
The company anticipates similar sales and earnings growth for the year ahead, including for the quarter currently underway. A statement from the company suggested sales would rise 29% this year , with equipment sales growth of between 30% and 40% in the second fiscal quarter alone. Wirtgen will account for much of that growth, driving an 80% increase in sales for the company's construction and forestry arm. But, growing demand is also a key element to Deere's optimistic outlook.
Demand for farm machinery has been suppressed for the past few years. This partially stems from overproduction several years ago. It's also a result of crop prices that didn't merit such spending. The cycle is moving in Deere's favor again, however, with rural agricultural sentiment at its highest levels since 2014 , and with farmland prices finally stabilizing. An earnings report from food-farming outfit Bunge Ltd (NYSE: BG ) further suggested that the agricultural landscape was poised to look healthier later this year .
Edward Jones & Co. analyst Matt Arnold also pointed out that agricultural sentiment "can change on a dime. A weather event could prompt an upswing in grain prices and income, and it's been a long time since we've seen one of those."
In the meantime, Deere's deeper foray into the construction market may not have been better timed. The White House recently unveiled a 10-year, $1.5 trillion plan to improve the nation's roads, waterways, bridges, electrical grid and more. Few deny that the United States' infrastructure needs help. The matter has been heavily politicized. But with or without wholehearted support from Washington lawmakers, a robust economy will help make much-needed funding available. That bodes well for Deere & Company.
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As of the latest look, analysts are looking for revenue of $31.6 billion this year , up 22% YOY. Those same pros are calling for full-year earnings of $8.40 per share, up from the $6.68 per share of DE stock booked in the previous year.
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 Deere & Company Reaps the Harvest of Growing Demand 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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Deere & Company hadn't made a priority of construction machinery in the past, ceding much of that business to close-cousin Caterpillar Inc. (NYSE: CAT ). Bloomberg Intelligence analyst Karen Ubelhart commented on the shift, "The construction business is low-margin for Deere, so wasn't meaningful to earnings in the past. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) shares had gained more than 50% over the course of the 12 months leading up to Friday's earnings report, setting the stage for a profit-taking tumble from DE stock following the news.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) shares had gained more than 50% over the course of the 12 months leading up to Friday's earnings report, setting the stage for a profit-taking tumble from DE stock following the news. However, Deere's smaller construction equipment arm saw sales grow 57% to $1.7 billion, partially thanks to the recent acquisition of road equipment company Wirtgen . Looking Ahead for DE Stock The company anticipates similar sales and earnings growth for the year ahead, including for the quarter currently underway.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) shares had gained more than 50% over the course of the 12 months leading up to Friday's earnings report, setting the stage for a profit-taking tumble from DE stock following the news. DE Stock Earnings Recap For its first fiscal quarter of the year, farm and construction implement maker Deere & Company - you may know it better as John Deere - turned $5.97 billion worth of revenue into an operating profit of $1.31 per share of DE stock. More From InvestorPlace 7 Great REITs to Own in Good Times and Bad 8 Companies That Could Disappear by 2019 10 Dividend Stocks to Buy With Low Yields, But Big Dividend Growth Compare Brokers The post Deere & Company Reaps the Harvest of Growing Demand appeared first on InvestorPlace .
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Analysts were only calling for earnings of $1.16 per share of Deere & Company stock, but were also modeling revenue of $6.4 billion. However, Deere's smaller construction equipment arm saw sales grow 57% to $1.7 billion, partially thanks to the recent acquisition of road equipment company Wirtgen . InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) shares had gained more than 50% over the course of the 12 months leading up to Friday's earnings report, setting the stage for a profit-taking tumble from DE stock following the news.
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52f3a558-6b5b-47d1-afe4-239ae116694e
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722083.0
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2018-02-20 00:00:00 UTC
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Company News For Feb 20, 2018
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DE
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https://www.nasdaq.com/articles/company-news-for-feb-20-2018-2018-02-20
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nan
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nan
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Shares of Deere & Company DE surged 1.6% after reporting fiscal first quarter 2018 earnings per share of $1.31, surpassing the Zacks Consensus Estimate of $1.16
The Kraft Heinz Company's KHC shares plunged 2.6% after reporting fourth quarter 2017 earnings per share of $0.90, below the Zacks Consensus Estimate of $0.96
Shares of EPAM Systems, Inc. EPAM rallied 2.4% after posting fourth quarter 2017 earnings per share of $0.83, surpassing the Zack Consensus Estimate of $0.82
The J. M. Smucker Company's SJM increased 1.5% after reporting fourth quarter 2017 earnings per share of $2.50, surpassing the Zacks Consensus Estimate of $2.16
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EPAM Systems, Inc. (EPAM): Free Stock Analysis Report
J.M. Smucker Company (The) (SJM): Free Stock Analysis Report
The Kraft Heinz Company (KHC): 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 surged 1.6% after reporting fiscal first quarter 2018 earnings per share of $1.31, surpassing the Zacks Consensus Estimate of $1.16 The Kraft Heinz Company's KHC shares plunged 2.6% after reporting fourth quarter 2017 earnings per share of $0.90, below the Zacks Consensus Estimate of $0.96 Shares of EPAM Systems, Inc. EPAM rallied 2.4% after posting fourth quarter 2017 earnings per share of $0.83, surpassing the Zack Consensus Estimate of $0.82 The J. M. Smucker Company's SJM increased 1.5% after reporting fourth quarter 2017 earnings per share of $2.50, surpassing the Zacks Consensus Estimate of $2.16 Want the latest recommendations from Zacks Investment Research? Smucker Company (The) (SJM): Free Stock Analysis Report The Kraft Heinz Company (KHC): 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.
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Shares of Deere & Company DE surged 1.6% after reporting fiscal first quarter 2018 earnings per share of $1.31, surpassing the Zacks Consensus Estimate of $1.16 The Kraft Heinz Company's KHC shares plunged 2.6% after reporting fourth quarter 2017 earnings per share of $0.90, below the Zacks Consensus Estimate of $0.96 Shares of EPAM Systems, Inc. EPAM rallied 2.4% after posting fourth quarter 2017 earnings per share of $0.83, surpassing the Zack Consensus Estimate of $0.82 The J. M. Smucker Company's SJM increased 1.5% after reporting fourth quarter 2017 earnings per share of $2.50, surpassing the Zacks Consensus Estimate of $2.16 Want the latest recommendations from Zacks Investment Research? Smucker Company (The) (SJM): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Click to get this free report EPAM Systems, Inc. (EPAM): Free Stock Analysis Report J.M.
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Shares of Deere & Company DE surged 1.6% after reporting fiscal first quarter 2018 earnings per share of $1.31, surpassing the Zacks Consensus Estimate of $1.16 The Kraft Heinz Company's KHC shares plunged 2.6% after reporting fourth quarter 2017 earnings per share of $0.90, below the Zacks Consensus Estimate of $0.96 Shares of EPAM Systems, Inc. EPAM rallied 2.4% after posting fourth quarter 2017 earnings per share of $0.83, surpassing the Zack Consensus Estimate of $0.82 The J. M. Smucker Company's SJM increased 1.5% after reporting fourth quarter 2017 earnings per share of $2.50, surpassing the Zacks Consensus Estimate of $2.16 Want the latest recommendations from Zacks Investment Research? Smucker Company (The) (SJM): Free Stock Analysis Report The Kraft Heinz Company (KHC): 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.
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Smucker Company (The) (SJM): Free Stock Analysis Report The Kraft Heinz Company (KHC): 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 surged 1.6% after reporting fiscal first quarter 2018 earnings per share of $1.31, surpassing the Zacks Consensus Estimate of $1.16 The Kraft Heinz Company's KHC shares plunged 2.6% after reporting fourth quarter 2017 earnings per share of $0.90, below the Zacks Consensus Estimate of $0.96 Shares of EPAM Systems, Inc. EPAM rallied 2.4% after posting fourth quarter 2017 earnings per share of $0.83, surpassing the Zack Consensus Estimate of $0.82 The J. M. Smucker Company's SJM increased 1.5% after reporting fourth quarter 2017 earnings per share of $2.50, surpassing the Zacks Consensus Estimate of $2.16 Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
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b34ac76a-fa15-412c-8f4b-322842948b0c
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722084.0
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2018-02-20 00:00:00 UTC
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Wirtgen Buyout to Aid Deere Amid Dismal Agriculture Business
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DE
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https://www.nasdaq.com/articles/wirtgen-buyout-to-aid-deere-amid-dismal-agriculture-business-2018-02-20
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On Feb 19, we issued an updated research report on Deere & CompanyDE . The company is poised to gain from the Wirtgen acquisition, higher housing starts, and improving oil and gas sector. However, the company's lackluster agriculture business and elevated expenses are expected to dent its performance in the near future.
Let's illustrate the factors in detail.
Wirtgen Acquisition to Boost Deere's Construction Business
In December 2017, Deere acquired world's leading road-construction equipment maker - Wirtgen - for $5.2 billion in cash and debt. This buyout will aid Deere's North America-centric construction business expand to a global scale and also catapult it to the position of an industry leader in global road construction. The transaction is also anticipated to add about 56% of its Construction & Forestry segment's sales in fiscal 2018.
Higher Housing Starts a Boon for Deere
Deere projects global sales for the Construction & Forestry equipment to be up a massive 80% in fiscal 2018, driven by higher housing starts in the United States. Single-family housing starts are strong across all regions in the nation. Further, increasing wages and job growth reinforce the outlook for growing housing starts.
Per the latest report of the U.S. Census Bureau, housing starts in January 2018 came in 9.7% higher than the December tally and are up 7.3% year over year. This January, U.S. new-home construction grew to the highest level since October 2016. It is expected that this momentum in the housing market will continue through the year.
Stabilizing Oil Prices to Fuel Growth
Deere estimates that its construction investment will be up 2.2% in fiscal 2018, higher than the previous forecast of 1.4%. The increase is primarily being led by oil and gas, and residential activity. Oil prices are estimated to average above $58 a barrel for the fiscal. In addition, machinery rental utilization rates continue to improve and rental pricing continues to gain positive traction.
Agriculture Business a Concern for Deere
Deere's agriculture business will be affected in fiscal 2018 by the expectation of high global grain and oil seed stocks-to-use ratios. This is because abundant crops have offset strong demand around the world. Further, the U.S. farm cash receipts are estimated to be $372 billion, approximately 1% lower than fiscal 2017, as gains from oil crops are offset by declines in feed crops.
Adverse Impact of Tax Reform
Deere's earnings will be hurt by the impact of the tax reform in fiscal 2018. The company recorded equipment operations tax rate of 422% in first-quarter fiscal 2018, primarily due to the impact of the tax reform. For the remainder of the fiscal, the effective tax rate is projected in the range of 25-27%, which implies an effective tax rate of approximately 62% for fiscal 2018.
Escalating Expenses to Impede Deere's Profit
In addition, Deere will be affected by elevated expenses in the current fiscal. Its guidance for cost of sales as a percent of net sales is about 75% for the fiscal. The company believes an unfavorable product mix, elevated overhead spending and increased incentive compensation will drive the cost of sales guidance. Deere also forecasts SA&G expense to flare up nearly 23% in the fiscal. These expenses will dampen earnings.
Share Price Performance
Deere has outperformed its industry with respect to price performance in a year's time. The stock has appreciated around 54.5%, while the industry has recorded growth of 44.8% during the same time frame.
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Dover Corporation DOV , W.W. Grainger, Inc. GWW and H&E Equipment Services, Inc. HEES . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Dover has a long-term earnings growth rate of 13%. Its shares have rallied 20.9%, over the past six months.
Grainger has a long-term earnings growth rate of 9.7%. The company's shares have been up 68.3% during the same time frame.
H&E Equipment Services has a long-term earnings growth rate of 18.6%. The stock has gained 77.8% in six months' time.
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H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): 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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Stabilizing Oil Prices to Fuel Growth Deere estimates that its construction investment will be up 2.2% in fiscal 2018, higher than the previous forecast of 1.4%. On Feb 19, we issued an updated research report on Deere & CompanyDE . However, the company's lackluster agriculture business and elevated expenses are expected to dent its performance in the near future.
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Wirtgen Acquisition to Boost Deere's Construction Business In December 2017, Deere acquired world's leading road-construction equipment maker - Wirtgen - for $5.2 billion in cash and debt. Higher Housing Starts a Boon for Deere Deere projects global sales for the Construction & Forestry equipment to be up a massive 80% in fiscal 2018, driven by higher housing starts in the United States. Click to get this free report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): 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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Higher Housing Starts a Boon for Deere Deere projects global sales for the Construction & Forestry equipment to be up a massive 80% in fiscal 2018, driven by higher housing starts in the United States. Agriculture Business a Concern for Deere Deere's agriculture business will be affected in fiscal 2018 by the expectation of high global grain and oil seed stocks-to-use ratios. Click to get this free report H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): 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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Per the latest report of the U.S. Census Bureau, housing starts in January 2018 came in 9.7% higher than the December tally and are up 7.3% year over year. On Feb 19, we issued an updated research report on Deere & CompanyDE . However, the company's lackluster agriculture business and elevated expenses are expected to dent its performance in the near future.
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722085.0
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2018-02-16 00:00:00 UTC
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Midday Update: Wall Street Climbs to Six Straight Gain on Upbeat Consumer Sentiment
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https://www.nasdaq.com/articles/midday-update-wall-street-climbs-six-straight-gain-upbeat-consumer-sentiment-2018-02-16
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Wall Street's benchmark averages are trading higher for a sixth straight day and set to close the week higher after two weeks in the red as investors' confidence was fuelled by bullish housing market and consumer sentiment data, as well as pull-back in Treasury yields and stability in the volatility index. The Dow Jones Industrial Average is trading at its highest level in seven days on strength in healthcare and telecom shares.
Stocks were struggling to stay positive at the open after a 10.5-year high in January housing permits and nearly a 10% surge in housing starts, both of which handily beat Wall Street's expectations.
Following on the heels of greater-than-expected gains in consumer and producer prices, import and export prices were also up by more than expected. Import prices were up 1.0% last month, while export prices increased 0.8%.
Shares were nudged into the plus column on an unexpected improvement in the University of Michigan consumer sentiment index, which reached its second highest level in 14 years of 99.9, well above 95.5 estimates.
Once the market broke to the upside, the move higher was steady with Treasury yields moving in the opposite direction. From 2.90% on Thursday, the yield on the 10-year note backed up 3 basis points to 2.866%.
In earnings news, shares of Deere ( DE ) set a record high following upbeat Q4 results and an increase to FY revenue guidance. Campbell's Soup ( CPB ) is lower despite better-than-expected quarterly results when the CEO's downbeat assessment of the quarter spooked investors.
Crude oil was up $0.37 to $61.71 per barrel. Natural gas was down $0.02 to $2.56 per 1 million BTU. Gold was up $0.60 to $1,355.90 an ounce, while silver was down $0.07 to $16.72 an ounce. Copper was up $0.01 to $3.25 per pound.
Among energy ETFs, the United States Oil Fund was up 0.53% to 12.40 with the United States Natural Gas Fund was down 0.98% to 21.66. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 1.41% to 22.74 while SPDR Gold Shares were down 0.06% to $128.30. The iShares Silver Trust was down 0.69% to $15.80.
Here's where the markets stand at mid-day:
US MARKETS
NYSE Composite Index was up 71.95 points (+0.55%) to 12,928.82
Dow Jones Industrial Index was up 165.13 points (+0.66%) to 25,365.50
S&P 500 was up 16.23 points (+0.59%) to 2,747.52
Nasdaq Composite Index was up 32.48 points (+0.45%) to 7,288.46
GLOBAL SENTIMENT
FTSE 100 was up 59.89 points (+0.83%) to 7,294.70
DAX was up 105.79 points (+0.86%) to 12,241.96
CAC 40 was up 59.06 points (+1.13%) to 5,281.58
Nikkei 225 was up 255.27 points (+1.19%) to 21,720.25
Hang Seng Index was closed
Shanghai China Composite Index was closed
NYSE SECTOR INDICES
NYSE Energy Sector Index was up 44.83 points (+0.38%) to 10,904.39
NYSE Financial Sector Index was up 36.99 points (+0.41%) to 8,385.23
NYSE Healthcare Sector Index was up 167.50 points (+1.15%) to 14,677.33
UPSIDE MOVERS
(+) YRIV (+21.38%) Shareholders approved spin-off into blockchain unit
(+) SNCR (+21.26%) Closes sale of $185 million of preferred equity
(+) VII (+17.03%) To provide statewide surveillance network for Sinaloa, Mexico
DOWNSIDE MOVERS
(-) NNDM (-33.03%) Priced 6 million ADS offering at 40% discount
(-) RIOT (-27.70%) Subject of CNBC investigative report questioning company's credibility
(-) MBRX (-26.07%) Prices registered direct offering of $9 million of securities
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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Shares were nudged into the plus column on an unexpected improvement in the University of Michigan consumer sentiment index, which reached its second highest level in 14 years of 99.9, well above 95.5 estimates. In earnings news, shares of Deere ( DE ) set a record high following upbeat Q4 results and an increase to FY revenue guidance. (+) YRIV (+21.38%) Shareholders approved spin-off into blockchain unit (+) SNCR (+21.26%) Closes sale of $185 million of preferred equity (+) VII (+17.03%) To provide statewide surveillance network for Sinaloa, Mexico
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NYSE Composite Index was up 71.95 points (+0.55%) to 12,928.82 Dow Jones Industrial Index was up 165.13 points (+0.66%) to 25,365.50 S&P 500 was up 16.23 points (+0.59%) to 2,747.52 Nasdaq Composite Index was up 32.48 points (+0.45%) to 7,288.46 NYSE Energy Sector Index was up 44.83 points (+0.38%) to 10,904.39 NYSE Financial Sector Index was up 36.99 points (+0.41%) to 8,385.23 NYSE Healthcare Sector Index was up 167.50 points (+1.15%) to 14,677.33 Wall Street's benchmark averages are trading higher for a sixth straight day and set to close the week higher after two weeks in the red as investors' confidence was fuelled by bullish housing market and consumer sentiment data, as well as pull-back in Treasury yields and stability in the volatility index.
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NYSE Composite Index was up 71.95 points (+0.55%) to 12,928.82 Dow Jones Industrial Index was up 165.13 points (+0.66%) to 25,365.50 S&P 500 was up 16.23 points (+0.59%) to 2,747.52 Nasdaq Composite Index was up 32.48 points (+0.45%) to 7,288.46 NYSE Energy Sector Index was up 44.83 points (+0.38%) to 10,904.39 NYSE Financial Sector Index was up 36.99 points (+0.41%) to 8,385.23 NYSE Healthcare Sector Index was up 167.50 points (+1.15%) to 14,677.33 Wall Street's benchmark averages are trading higher for a sixth straight day and set to close the week higher after two weeks in the red as investors' confidence was fuelled by bullish housing market and consumer sentiment data, as well as pull-back in Treasury yields and stability in the volatility index.
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Wall Street's benchmark averages are trading higher for a sixth straight day and set to close the week higher after two weeks in the red as investors' confidence was fuelled by bullish housing market and consumer sentiment data, as well as pull-back in Treasury yields and stability in the volatility index. Shares were nudged into the plus column on an unexpected improvement in the University of Michigan consumer sentiment index, which reached its second highest level in 14 years of 99.9, well above 95.5 estimates. Once the market broke to the upside, the move higher was steady with Treasury yields moving in the opposite direction.
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2e478fa4-a340-4c10-a66b-7f84f2a791e7
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722086.0
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2018-02-16 00:00:00 UTC
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Deere & Company Stock Surges on Strong Outlook
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DE
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https://www.nasdaq.com/articles/deere-company-stock-surges-strong-outlook-2018-02-16
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company (NYSE: DE ) stock was up Friday on a strong outlook in its earnings report for its first fiscal quarter of 2018.
Source: Ford8n via Flickr (Modified)
Deere & Company says that it is expecting equipment sales for its fiscal full year of 2018 to increase by 29%. The company notes that 12% of this increase in equipment sales will come from Wirtgen.
When it comes to revenue for its fiscal full year of 2018, Deere & Company is expecting an increase of roughly 25%. DE reported revenue of $29.73 billion for fiscal 2017. Wall Street is looking for revenue of $31.59 billion for the year, which is about a 6% increase from 2017 revenue.
Alongside its strong revenue outlook for fiscal 2018 was revenue of $6.91 billion for its fiscal first quarter of the year. This is up 23% from the $5.63 billion that was reported in the same period of the year prior. It also beat out analysts' revenue estimate of $6.42 billion for the quarter.
During its fiscal first quarter of the year, Deere & Company reported earnings per share of $1.31. This is an increase over its earnings per share of 61 cents from the fiscal first quarter of 2017. It also comes in above Wall Street's earnings per share estimate of $1.20 for the period.
5 Cheap Dividend Stocks With Growing Payouts
Deere & Company notes that it reported a net loss of $535.1 million for its fiscal first quarter of 2018. This is down from its net income of $199.0 million from the same time last year. DE points out that it suffered a $965 million charge in connection to tax reform changes in the most recent quarter.
DE stock was up 3% 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 Surges on Strong Outlook 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) Deere & Company says that it is expecting equipment sales for its fiscal full year of 2018 to increase by 29%. 5 Cheap Dividend Stocks With Growing Payouts Deere & Company notes that it reported a net loss of $535.1 million for its fiscal first quarter of 2018. Compare Brokers The post Deere & Company Stock Surges on Strong Outlook appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was up Friday on a strong outlook in its earnings report for its first fiscal quarter of 2018. When it comes to revenue for its fiscal full year of 2018, Deere & Company is expecting an increase of roughly 25%. During its fiscal first quarter of the year, Deere & Company reported earnings per share of $1.31.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was up Friday on a strong outlook in its earnings report for its first fiscal quarter of 2018. Alongside its strong revenue outlook for fiscal 2018 was revenue of $6.91 billion for its fiscal first quarter of the year. During its fiscal first quarter of the year, Deere & Company reported earnings per share of $1.31.
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DE reported revenue of $29.73 billion for fiscal 2017. Alongside its strong revenue outlook for fiscal 2018 was revenue of $6.91 billion for its fiscal first quarter of the year. 5 Cheap Dividend Stocks With Growing Payouts Deere & Company notes that it reported a net loss of $535.1 million for its fiscal first quarter of 2018.
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722087.0
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2018-02-16 00:00:00 UTC
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Deere (DE) Beats on Q1 Earnings, Lags Revenue Estimates
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DE
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https://www.nasdaq.com/articles/deere-de-beats-on-q1-earnings-lags-revenue-estimates-2018-02-16
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Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported first-quarter fiscal 2018 results, wherein adjusted earnings of $1.31 surpassed the Zacks Consensus Estimate of $1.16.
Revenue: Deere posted revenues of $5.97 billion, which missed the Zacks Consensus Estimate of $6.40 billion.
Outlook: Deere raised its total equipment sales growth outlook for fiscal 2018 to around 29% year over year from the prior guidance of about 22%. The company expects its sales to rise by 30-40% in the second-quarter of fiscal 2018, compared with year-ago periods. Deere stated that Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 16% for the second quarter. The forecast also includes a positive foreign-currency translation effect of about 3% for the fiscal and about 4% in the second quarter. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
Earnings Estimates Revision: The Zacks Consensus Estimate for the first quarter of fiscal 2018 has moved north over the past 7 days. Coming to earnings surprise history, Deere has an impressive track record. In the past 4 quarters, the company has outpaced the Zacks Consensus Estimate on all occasions, with an average beat of 19.52%.
Deere & Company Price and EPS Surprise
Deere & Company Price and EPS Surprise | Deere & Company Quote
Zacks Rank: Currently, Deere carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Market Reaction: Deere's shares gained around 0.7% in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on Deere earnings report!
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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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Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported first-quarter fiscal 2018 results, wherein adjusted earnings of $1.31 surpassed the Zacks Consensus Estimate of $1.16. Revenue: Deere posted revenues of $5.97 billion, which missed the Zacks Consensus Estimate of $6.40 billion. Outlook: Deere raised its total equipment sales growth outlook for fiscal 2018 to around 29% year over year from the prior guidance of about 22%.
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Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Zacks Rank: Currently, Deere carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported first-quarter fiscal 2018 results, wherein adjusted earnings of $1.31 surpassed the Zacks Consensus Estimate of $1.16.
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Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported first-quarter fiscal 2018 results, wherein adjusted earnings of $1.31 surpassed the Zacks Consensus Estimate of $1.16. Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Zacks Rank: Currently, Deere carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. Revenue: Deere posted revenues of $5.97 billion, which missed the Zacks Consensus Estimate of $6.40 billion.
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For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion. Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Zacks Rank: Currently, Deere carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported first-quarter fiscal 2018 results, wherein adjusted earnings of $1.31 surpassed the Zacks Consensus Estimate of $1.16.
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2018-02-16 00:00:00 UTC
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Stocks Turn Higher, But These Top Ranked IBD 50 Names Plunge
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https://www.nasdaq.com/articles/stocks-turn-higher-these-top-ranked-ibd-50-names-plunge-2018-02-16
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The major market averages were once again modestly higher Friday as they swung between mild gains and losses. Top-ranked stock Arista Networks ( ANET ) sold off in the stock market today .
[ibd-display-video id=3151711 width=50 float=left autostart=true] All three major indexes - the tech-heavy Nasdaq, S&P 500 and Dow Jones industrials - were down about 0.3%-0.4%, looking to end five-day win streaks. On the week, the Nasdaq is on pace for an more than 5% advance.
Within the Dow industrials , Coca Cola ( KO ) trimmed a gain to 0.7% Friday after its top- and bottom-line results exceeded analyst targets. Still, the beverage and snack giant is stuck under its 200-day moving average line - where it appears to be finding resistance - after giving up the level on Feb. 5.
Elsewhere, Apple ( AAPL ) rose 0.9%, as it quietly traded after five days of solid gains. Shares recaptured their 50-day line Thursday amid the stock's over-10% gain this week.
Among companies reporting earnings , IBD Sector LeaderLogMeIn ( LOGM ) traded more than 7% lower amid weaker-than-expected current quarter and full-year revenue guidance. The stock is now about 3% below its 128.45 cup-with-handle entry after Wednesday's solid breakout.
Deere ( DE ) rose 0.9% despite missing top-line estimates early Friday. Shares have rebounded back above their 50-day line and are up about 35% from a 124.94 cup-with-handle buy point. Bullishly, the stock's relative strength line continues to make new highs, indicating substantial market outperformance.
Graphics-chip maker Nvidia (NVDA) continued its winning ways with a 0.8% advance, but is giving up some gains after hitting a new high. The stock reached a new high amid immense volatility after the stock's breakout above a 218.77 cup-shaped base buy point on Jan. 8. Shares are about 13% from that buy point after finding support at the 50-day line.
Inside the IBD 50 , Arista Networks ( ANET ) plunged 18% after its sales and gross margin outlook in the current quarter were weaker than expected. The No. 1-ranked IBD 50 stock's fall puts it right back at its 50-day line. Heading into the earnings release, the stock had reached the 20%-25% profit-taking level from a 245.75 cup-shaped base entry.
Elsewhere, IPG Photonics (IPGP) stumbled 10%, sending it back near its 50-day line after five straight up days. The stock's breakout above a 248.33 cup-base buy point failed amid the market's recent turmoil.
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How To Capture A Big Gain In Leading Stocks? Possess These 4 Keys
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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Within the Dow industrials , Coca Cola ( KO ) trimmed a gain to 0.7% Friday after its top- and bottom-line results exceeded analyst targets. Among companies reporting earnings , IBD Sector LeaderLogMeIn ( LOGM ) traded more than 7% lower amid weaker-than-expected current quarter and full-year revenue guidance. Inside the IBD 50 , Arista Networks ( ANET ) plunged 18% after its sales and gross margin outlook in the current quarter were weaker than expected.
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S&P 500, Dow, Nasdaq Soar Despite Inflation Data; Cisco, China Internets, Hotels Report Earnings: Weekly Review These 3 Hot Stocks Plus Food Giants Lead Earnings: Investing Action Plan Dow Jones Industrial Average And Dow Stocks: News And Analysis How To Capture A Big Gain In Leading Stocks? The major market averages were once again modestly higher Friday as they swung between mild gains and losses. [ibd-display-video id=3151711 width=50 float=left autostart=true] All three major indexes - the tech-heavy Nasdaq, S&P 500 and Dow Jones industrials - were down about 0.3%-0.4%, looking to end five-day win streaks.
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S&P 500, Dow, Nasdaq Soar Despite Inflation Data; Cisco, China Internets, Hotels Report Earnings: Weekly Review These 3 Hot Stocks Plus Food Giants Lead Earnings: Investing Action Plan Dow Jones Industrial Average And Dow Stocks: News And Analysis How To Capture A Big Gain In Leading Stocks? The major market averages were once again modestly higher Friday as they swung between mild gains and losses. [ibd-display-video id=3151711 width=50 float=left autostart=true] All three major indexes - the tech-heavy Nasdaq, S&P 500 and Dow Jones industrials - were down about 0.3%-0.4%, looking to end five-day win streaks.
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Elsewhere, Apple ( AAPL ) rose 0.9%, as it quietly traded after five days of solid gains. Shares have rebounded back above their 50-day line and are up about 35% from a 124.94 cup-with-handle buy point. S&P 500, Dow, Nasdaq Soar Despite Inflation Data; Cisco, China Internets, Hotels Report Earnings: Weekly Review These 3 Hot Stocks Plus Food Giants Lead Earnings: Investing Action Plan Dow Jones Industrial Average And Dow Stocks: News And Analysis How To Capture A Big Gain In Leading Stocks?
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22c6205b-32f0-4be4-b783-8cd9ba3624cc
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722089.0
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2018-02-16 00:00:00 UTC
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Stocks Rise, Fight To Extend Rally As Apple Edges Up, Arista Dives
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DE
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https://www.nasdaq.com/articles/stocks-rise-fight-extend-rally-apple-edges-arista-dives-2018-02-16
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nan
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nan
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Stocks opened to narrow losses Friday, then reversed into tight gains as the major indexes fought to add a sixth day to their rebound rally before heading into the holiday weekend.
[ibd-display-video id=3149646 width=50 float=left autostart=true] The Dow Jones industrial average backed out of a fractional loss and gained 0.1%. The S&P 500 dipped 0.1%, then battled to a fractional gain. The Nasdaq Composite slipped 0.2%, then pulled up to rise 0.1%, as Apple ( AAPL ) reversed its early loss and as Alphabet ( GOOGL ) led gains among three of the four among FANG stocks .
The action across global stock markets was positive. Tokyo's Nikkei 225 ended the week on an affirmative note, climbing 1.2% Friday and rebounding 1.5% for the week. China's markets are closed for the country's Lunar New Year holiday.
In Europe, the leading benchmarks continued hammering out solid gains in afternoon trade. The CAC-40 in Paris led the advance with a 0.9% gain.
Housing starts jumped in January to their highest level in more than a year, the Commerce Department reported, reaching an annualized rate of 1.326 million. That was up from a rate of 1.21 million starts in December, easily outstripping consensus expectations for a rate of 1.232 million starts. Building permits, which provide a gauge of upcoming activity, were issued at a pace of 1.396 million, up from December's 1.3 million rate, and beating forecasts for a steady 1.3 million pace.
U.S. stock and bond markets will be closed on Monday for the Washington's Birthday holiday.
Coca-Cola, Jacobs Engineering Climb; Arista, Cohu, Cognex Take Hits
On the Dow, blue chips balanced out pretty quickly between decliners and gainers. Coca-Cola ( KO ) popped 1% to take an early lead after its fourth-quarter results cleared estimates and full-year guidance topped expectations. Coke's shares recovered nearly 4% this week, seeking to regain support and trading about 8% below their Jan. 26 high.
Apple opened down 0.3%, but quickly reversed to a 0.4% gain. Five sessions of mostly strong-volume gains have hoisted the stock back above its 50-day moving average, and turned its Relative Strength line from a negative to a positive indicator . Friday will be a test to see whether Apple can hold support at its 50-day line.
The four FANG stock tech leaders posted mild gains and losses. Google parent Alphabet led the group with a 0.6% gain. Swiss-based drugmaker Roche Holding (RHBBY) said it would pay $1.9 billion to acquire Flatiron, a New York-based developer of software for cancer records-keeping and research. Alphabet's Google Ventures had reportedly taken a stake in Flatiron, along with Roche and First Round Capital.
Earnings news was having some impact on premarket action. In addition to Coca-Cola, big names reporting early included Deere & Co. ( DE ), up 0.7%, Campbell Soup ( CPB ), down 3.2%, and Kraft Heinz (KHC), down 6.4%.
IPO Mulesoft (MULE) kicked up an early 11% gain after reporting late Thursday a loss of 12 cents a share and a 60% revenue gain, meeting analyst estimates for its fourth quarter. Full-year guidance topped views. The stock gained 9% for the week through Thursday, trading 11% below a May high and up 54% from their March 2017 IPO price.
Investors continued to penalize earnings misses harshly, sending chip-equipment maker Cohu (COHU) down 14% after fourth-quarter earnings and first-quarter guidance fell short of targets.
Arista Networks (ANET) tumbled 15%. The IBD 50 leader reported late Thursday its earnings were stronger than expected in the fourth quarter, but revenue only narrowly topped targets and the company's first-quarter outlook disappointed investors . The stock had punched 13% higher for the week through Thursday. The opening pullback stopped just short of the stock's 10-week moving average.
Other stocks taking hard premarket hits following earnings included Cognex (CGNX), down 5%, Yamana Gold (AUY), down 8% and LogMeIn (LOGM), down 7%.
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Using The 50-Day Line For New Buying Opportunities
Leading China Names Begin Year Of The Dog In Race To Form Bases
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 opened to narrow losses Friday, then reversed into tight gains as the major indexes fought to add a sixth day to their rebound rally before heading into the holiday weekend. Coca-Cola, Jacobs Engineering Climb; Arista, Cohu, Cognex Take Hits On the Dow, blue chips balanced out pretty quickly between decliners and gainers. The IBD 50 leader reported late Thursday its earnings were stronger than expected in the fourth quarter, but revenue only narrowly topped targets and the company's first-quarter outlook disappointed investors .
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The IBD 50 leader reported late Thursday its earnings were stronger than expected in the fourth quarter, but revenue only narrowly topped targets and the company's first-quarter outlook disappointed investors . Stocks opened to narrow losses Friday, then reversed into tight gains as the major indexes fought to add a sixth day to their rebound rally before heading into the holiday weekend. [ibd-display-video id=3149646 width=50 float=left autostart=true] The Dow Jones industrial average backed out of a fractional loss and gained 0.1%.
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Stocks opened to narrow losses Friday, then reversed into tight gains as the major indexes fought to add a sixth day to their rebound rally before heading into the holiday weekend. [ibd-display-video id=3149646 width=50 float=left autostart=true] The Dow Jones industrial average backed out of a fractional loss and gained 0.1%. Tokyo's Nikkei 225 ended the week on an affirmative note, climbing 1.2% Friday and rebounding 1.5% for the week.
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Stocks opened to narrow losses Friday, then reversed into tight gains as the major indexes fought to add a sixth day to their rebound rally before heading into the holiday weekend. [ibd-display-video id=3149646 width=50 float=left autostart=true] The Dow Jones industrial average backed out of a fractional loss and gained 0.1%. Tokyo's Nikkei 225 ended the week on an affirmative note, climbing 1.2% Friday and rebounding 1.5% for the week.
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1d2303e3-29ef-4aa9-b1a8-279e9d26e682
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722090.0
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2018-02-16 00:00:00 UTC
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Deere (DE) Q1 Earnings Beat on Rising Demand, View Upbeat
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DE
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https://www.nasdaq.com/articles/deere-de-q1-earnings-beat-on-rising-demand-view-upbeat-2018-02-16
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nan
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nan
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Deere & CompanyDE reported first-quarter fiscal 2018 (ended Jan 28, 2018) adjusted earnings of $1.31 per share, which surged a whopping 111% year over year. The bottom line surpassed the Zacks Consensus Estimate of $1.16. Deere's strong results were driven by elevated demand, improvement in agricultural and construction equipment market partly offset by supply chain and logistical delays in shipping products.
Including tax adjustments related to the tax reform , the company reported a loss of $1.66 per share, compared to earnings of 62 cents per share recorded in the year-ago quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $5.97 billion, rising 27% year over year. Revenues, however, missed the Zacks Consensus Estimate of $6.4 billion.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote
Deere's acquisition of the Wirtgen Group in December 2017 added 5% to net sales in the first quarter. Sales also included a favorable currency-translation effect of 3% in the quarter. Region wise, equipment net sales increased 24% in the United States and Canada, and 33% in the rest of the world. Total net sales (including financial services and others) came in at $6.9 billion, up 23% year over year.
Operational Update
Cost of sales in the quarter increased 24% year over year to $4.7 billion. Gross profit in the reported quarter came in at $1.27 billion, advancing 38.5% year over year. Selling, administrative and general expenses flared up 5.6% to $705 million. Operating profit significantly improved to $636 million from $422 million reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales increased 18% year over year to $4.24 billion, primarily driven by higher shipment volumes and positive currency-translation impact. Operating profit at the segment climbed 78% year over year to $387 million, driven by higher shipment volumes and lower warranty costs, partially offset by escalated production costs.
Construction & Forestry sales surged 57% year over year to $1.73 billion, mainly as a result of the Wirtgen acquisition. Sales also increased due to higher shipment volumes and the favorable impact of currency translation. This segment reported operating profit of $32 million, down 14% from $37 million recorded in the prior-year quarter. The decline was due to operating loss for the Wirtgen acquisition related to the effects of purchase accounting and acquisition costs.
Net revenues at Deere's Financial Services division totaled $776 million in the reported quarter, up 11% year over year. The segment's operating profit came in at $217 million, up 30% year over year. Net income at the segment was $425.3 million compared with $114.4 million recorded in the year-earlier quarter. The increase was largely attributable to a provisional income-tax benefit of $278.1 million related to the tax reform.
Financial Update
Deere reported cash and cash equivalents of $3.92 billion at the end of the fiscal first quarter as against $3.89 billion at the end of the prior year quarter. Cash used in operations was $1,296.8 million in the quarter compared with $736.7 million in the prior-year quarter. At the quarter end, long-term borrowing totaled $26.4 billion, up from $22.9 billion at the end of the year-ago quarter.
Looking Ahead
Deere raised its total equipment sales growth outlook for fiscal 2018 to around 29% year over year from the prior guidance of about 22%. For the second-quarter of fiscal 2018, the company expects sales to be up 30-40% from the year-ago quarter. Deere stated that the Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 16% for the fiscal second quarter. The forecast also includes a positive foreign-currency translation impact of about 3% for the fiscal and about 4% in the fiscal second quarter. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 15% in fiscal 2018, including a positive currency-translation effect of about 3%. Industry sales for agricultural equipment in the United States and Canada are estimated to be up about 10% for the fiscal, aided by higher 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 continued positive conditions, particularly in Argentina.
The company predicts global sales for Construction & Forestry equipment to be up a massive 80% for fiscal 2018, including a positive currency-translation effect of about 2%. 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 5%.
The outlook for net income from Financial Services has been set at $840 million for fiscal 2018, which includes about $320 million of favorable changes associated with the recent tax reform. The outlook reflects a higher average portfolio, partially offset by elevated selling, administrative and general expenses.
Share Price Performance
Deere has outperformed the industry with respect to price performance over the last year. While the stock has appreciated 52.8%, the industry recorded growth of 40.9% during the same time frame.
Zacks Rank and Other Key Picks
Currently, Deere carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the same space include Applied Industrial Technologies, Inc. AIT , Atkore International Group Inc. ATKR and Dover Corporation DOV , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Industrial Technologies has a long-term earnings growth rate of 12%. Its shares have rallied 30.5%, over the past six months.
Atkore International Group has a long-term earnings growth rate of 10%. The company's shares have been up 27.3% during the same time frame.
Dover has a long-term earnings growth rate of 13%. The stock has gained 20.9% in six months' time.
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Atkore International Group Inc. (ATKR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Dover Corporation (DOV): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): 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's strong results were driven by elevated demand, improvement in agricultural and construction equipment market partly offset by supply chain and logistical delays in shipping products. Other top-ranked stocks in the same space include Applied Industrial Technologies, Inc. AIT , Atkore International Group Inc. ATKR and Dover Corporation DOV , each sporting a Zacks Rank #1 (Strong Buy). Deere & CompanyDE reported first-quarter fiscal 2018 (ended Jan 28, 2018) adjusted earnings of $1.31 per share, which surged a whopping 111% year over year.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Deere's acquisition of the Wirtgen Group in December 2017 added 5% to net sales in the first quarter. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE reported first-quarter fiscal 2018 (ended Jan 28, 2018) adjusted earnings of $1.31 per share, which surged a whopping 111% year over year.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Deere's acquisition of the Wirtgen Group in December 2017 added 5% to net sales in the first quarter. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion. Click to get this free report Atkore International Group Inc. (ATKR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here.
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For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion. Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 15% in fiscal 2018, including a positive currency-translation effect of about 3%. While the stock has appreciated 52.8%, the industry recorded growth of 40.9% during the same time frame.
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9df0fe4d-dec8-4536-8c80-ca0328b759db
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722091.0
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2018-02-16 00:00:00 UTC
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Deere Earnings Top Views, Sales Fall Short
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DE
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https://www.nasdaq.com/articles/deere-earnings-top-views-sales-fall-short-2018-02-16
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nan
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nan
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Deere ( DE ) reported earnings early Friday that topped views, but adjusted revenue came up short for the maker of farm, forestry and road construction equipment.
[ibd-display-video id=3151711 width=50 float=left autostart=true] Estimates : EPS to surge 90% to $1.16 with adjusted revenue climbing 36% to $6.4 billion, according to Zacks Investment Research.
Results : Deere earned $1.31 a share, but net equipment sales grew 27% to $5.97 billion, below views. Agriculture and turf sales increased 18%. Construction and forestry sales jumped 57%, with Wirtgen adding 23%.
Outlook: Deere sees equipment sales up 29% in fiscal 2018, including a 30%-40% jump in fiscal Q2. Much of that reflects that addition of its recent Wirtgen takeover. Analysts expect a 23% revenue rise in Q2 to $9 billion, but it's unclear if Wirtgen sales are included in that estimate.
The Wirtgen acquisition expands Deere into the road construction business that stands to gain massively from President Trump's infrastructure spending plans.
Stock : Shares rose 0.7% to 167.87 in morning trade on the stock market today . They rallied 1.9% to 166.81 Thursday, rising further above their 50-day moving average as well as buying territory. Caterpillar ( CAT ) rose 0.1%. Manitowoc ( MTW ) and Terex ( TEX ) fell a fraction.
IBD'S TAKE : Buying or holding a stock can be risky heading into an earnings report. Here's an earnings options strategy that can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.
The tractor and machinery maker benefited in 2017 from improving farm and construction markets, seeing especially strong gains in South America.
Shares of Deere surged 50% over the past year on the back of a rebound in commodities and a stronger global economy. A weak dollar has also acted as tailwind for U.S. multinationals.
Last month, construction gear giant Caterpillar crushed quarterly estimates again , seeing robust sales across global markets.
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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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Deere ( DE ) reported earnings early Friday that topped views, but adjusted revenue came up short for the maker of farm, forestry and road construction equipment. The Wirtgen acquisition expands Deere into the road construction business that stands to gain massively from President Trump's infrastructure spending plans. [ibd-display-video id=3151711 width=50 float=left autostart=true] Estimates : EPS to surge 90% to $1.16 with adjusted revenue climbing 36% to $6.4 billion, according to Zacks Investment Research.
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Deere ( DE ) reported earnings early Friday that topped views, but adjusted revenue came up short for the maker of farm, forestry and road construction equipment. Outlook: Deere sees equipment sales up 29% in fiscal 2018, including a 30%-40% jump in fiscal Q2. [ibd-display-video id=3151711 width=50 float=left autostart=true] Estimates : EPS to surge 90% to $1.16 with adjusted revenue climbing 36% to $6.4 billion, according to Zacks Investment Research.
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Deere ( DE ) reported earnings early Friday that topped views, but adjusted revenue came up short for the maker of farm, forestry and road construction equipment. Results : Deere earned $1.31 a share, but net equipment sales grew 27% to $5.97 billion, below views. [ibd-display-video id=3151711 width=50 float=left autostart=true] Estimates : EPS to surge 90% to $1.16 with adjusted revenue climbing 36% to $6.4 billion, according to Zacks Investment Research.
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Deere ( DE ) reported earnings early Friday that topped views, but adjusted revenue came up short for the maker of farm, forestry and road construction equipment. Results : Deere earned $1.31 a share, but net equipment sales grew 27% to $5.97 billion, below views. Analysts expect a 23% revenue rise in Q2 to $9 billion, but it's unclear if Wirtgen sales are included in that estimate.
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9d8dbc08-36fc-415c-9ad9-a59c438dd2cf
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722092.0
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2018-02-16 00:00:00 UTC
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Earnings Reaction History: Deere & Company, 50.0% Follow-Through Indicator, 5.9% Sensitive
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DE
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https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-500-follow-through-indicator-59-sensitive-2018-02
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nan
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nan
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Expected Earnings Release: 02/16/2018, Premarket
Avg. Extended-Hours Dollar Volume: $22,195,222
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: 33.3%
Average next regular session additional gain: 0.9%
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 33.3% of the time (2 events) the stock posted additional gains in the following regular session by an average of 0.9%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 75%
Average next regular session additional loss: 2.8%
Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 75.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 2.8% 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: 33.3% Average next regular session additional gain: 0.9% 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 33.3% of the time (2 events) the stock posted additional gains in the following regular session by an average of 0.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 75% Average next regular session additional loss: 2.8% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 75.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 2.8% 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: 33.3% Average next regular session additional gain: 0.9% 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 33.3% of the time (2 events) the stock posted additional gains in the following regular session by an average of 0.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 75% Average next regular session additional loss: 2.8% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 75.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 2.8% 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: 33.3% Average next regular session additional gain: 0.9% 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 33.3% of the time (2 events) the stock posted additional gains in the following regular session by an average of 0.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 75% Average next regular session additional loss: 2.8% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 75.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 2.8% by the following regular session close. Extended-Hours Dollar Volume: $22,195,222 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: $22,195,222 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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d3be9c05-4488-4f12-b37a-fac1a7f67bdd
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722093.0
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2018-02-16 00:00:00 UTC
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What Happened in the Stock Market Today
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DE
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https://www.nasdaq.com/articles/what-happened-stock-market-today-2018-02-16
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nan
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nan
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Stocks wavered between gains and losses on Friday, but the best week in years for the major benchmarks ended on a generally positive note. The Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) both posted small gains.
Today's stock market
Data source: Yahoo! Finance.
Health care stocks took a turn in the lead today, with the Health Care Select Sector SPDR ETF (NYSEMKT: XLV) climbing 0.7%. Rate-sensitive utility stocks rose as long-term interest rates eased; the Utilities Select SPDR ETF (NYSEMKT: XLU) added 0.9%.
As for individual companies, Deere & Company (NYSE: DE) reported a strong quarter and raised its outlook, while Arista Networks ' (NYSE: ANET) guidance for 2018 sales didn't meet investors' high expectations.
Deere sees strong global demand
Deere & Company bulldozed analyst expectations when it released fiscal first-quarter results, and the stock rose 1.6%. Revenue grew 22.9% to $6.9 billion. Adjusted earnings per share came in at $1.31, more than double the $0.61 in the quarter last year. Including one-time charges due to the new tax law, Deere's per-share loss was $1.66. Wall Street was expecting adjusted EPS of $1.20 on sales of $6.4 billion.
Deere also raised its forward guidance. Now the company forecasts 2018 equipment sales to grow 29% in fiscal 2018 and 30% to 40% in the second quarter, and adjusted net income for the year to amount to $2.85 billion. Earlier the company had guided to 2018 net income of $2.6 billion on a sales increase of 22%.
Equipment sales for the quarter were actually below the company forecast from three months ago, but Deere said that sales were hindered by bottlenecks in the supply chain and logistical delays in shipping products to dealers as it tried to meet the strong demand. The company said the improved outlook reflects confidence that it is in position to fulfill demand caused by strengthening conditions in the world's agricultural and construction equipment markets.
Arista Networks shares plummet despite strong results
Arista Networks reported a better-than-expected fourth quarter but gave a forecast for the full year that didn't satisfy investors, and the stock plunged 19%. Revenue grew 42.7% to $468 million and non-GAAP earnings per share increased 64.4% to $1.71. That blew away the consensus estimate of $1.41 per share on sales of $453 million.
Non-GAAP gross margin improved from 64.4% last quarter to 65.9%. For the full year, sales increased 45.8% over 2016 and EPS soared 70%.
Looking ahead to Q1, Arista expects revenue between $450 million and $468 million, comparing favorably with the analyst consensus of $458 million. Non-GAAP gross margin is expected to fall between 63% and 65%, a slight decline sequentially. Where Arista might have triggered the stock price decline was in the conference call, when CFO Ita Brennan said that revenue will face some "tough comparables" in 2018 and that top-line growth will moderate to a "more typical" mid-twenties rate for the full year.
Investors have come to expect anything but "typical" as the company continues to ride the cloud computing wave and take share from industry giant Cisco Systems . Although the guidance for growth to moderate to that level was not new -- CEO Jayshree Ullal discussed it three months ago -- it was still below analyst expectations of 27.5% growth.
Ullal said growth in artificial intelligence will increase demand for bandwidth, and Arista, now the market share leader in 100 gigabit Ethernet switching, will be entering the 400 gigabit Ethernet market next year. Investors had bid up the stock based on hopes for better numbers this year, though, so shares dropped back to levels seen early last month.
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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 said the improved outlook reflects confidence that it is in position to fulfill demand caused by strengthening conditions in the world's agricultural and construction equipment markets. Where Arista might have triggered the stock price decline was in the conference call, when CFO Ita Brennan said that revenue will face some "tough comparables" in 2018 and that top-line growth will moderate to a "more typical" mid-twenties rate for the full year. Investors have come to expect anything but "typical" as the company continues to ride the cloud computing wave and take share from industry giant Cisco Systems .
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As for individual companies, Deere & Company (NYSE: DE) reported a strong quarter and raised its outlook, while Arista Networks ' (NYSE: ANET) guidance for 2018 sales didn't meet investors' high expectations. Deere sees strong global demand Deere & Company bulldozed analyst expectations when it released fiscal first-quarter results, and the stock rose 1.6%. Arista Networks shares plummet despite strong results Arista Networks reported a better-than-expected fourth quarter but gave a forecast for the full year that didn't satisfy investors, and the stock plunged 19%.
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As for individual companies, Deere & Company (NYSE: DE) reported a strong quarter and raised its outlook, while Arista Networks ' (NYSE: ANET) guidance for 2018 sales didn't meet investors' high expectations. Deere sees strong global demand Deere & Company bulldozed analyst expectations when it released fiscal first-quarter results, and the stock rose 1.6%. Arista Networks shares plummet despite strong results Arista Networks reported a better-than-expected fourth quarter but gave a forecast for the full year that didn't satisfy investors, and the stock plunged 19%.
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Although the guidance for growth to moderate to that level was not new -- CEO Jayshree Ullal discussed it three months ago -- it was still below analyst expectations of 27.5% growth. Stocks wavered between gains and losses on Friday, but the best week in years for the major benchmarks ended on a generally positive note. The Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) both posted small gains.
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722094.0
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2018-02-15 00:00:00 UTC
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These 3 Hot Stocks Plus Food Giants Lead Earnings: Investing Action Plan
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https://www.nasdaq.com/articles/these-3-hot-stocks-plus-food-giants-lead-earnings-investing-action-plan-2018-02-15
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Here's your Investing Action Plan for Friday: what you need to know as an investor for the coming day.
[ibd-display-video id=3149582 width=50 float=left autostart=true] Three highly rated companies will lead the earnings charge: IPG Photonics ( IPGP ), Deere ( DE ) and VF Corp. ( VFC ). Meanwhile, a host of food and beverage companies will report as well, including Campbell Soup ( CPB ), Kraft Heinz ( KHC ), J.M. Smucker (SJM) and Coca-Cola (KO).
IPG Photonics
The industrial laser maker reports Q4 results before the market opens.
Estimates : EPS to climb 24.7% to $1.72 as revenue grows 24% to $347 million, according to Zack's Investment Research.
Stock : Shares closed up 2.6% at 259.07 on the stock market today , marking a fifth straight gain. The stock broke out from a cup base last month but sold off with the rest of the market last week and dove into loss-reducing sell territory . Still, it carries a Composite Rating of 99.
In January, Needham analysts raised their price target on IPG Photonics to 280 from 230, citing synchronized growth across the world's major economies. China, in particular, has been a growth driver for the company, it added.
Deere
The maker of farm and construction equipment reports fiscal Q1 earnings early.
Estimates : EPS to surge 90% to $1.16 with revenue climbing 36% to $6.4 billion.
Stock : Shares rallied 2.2% to finish at 166.81, rising further above their 50-day average as well as buying territory.
The rebound in commodities has boosted Deere, which is also benefiting from the strong global economy. Meanwhile, homebuilders remain confident despite a jump in interest rates.
Last month, construction gear giant Caterpillar (CAT) crushed quarterly estimates again , with sales growth accelerating across markets.
VF Corp.
The maker of North Face, Vans and Wrangler brands apparel reports Q4 financials early.
Estimates : EPS to grow 5% to $1.02 with revenue up 10% to $3.66 billion.
Stock : Shares edged up 0.3% to a fresh high of 83.94. Unlike IPG Photonics and Deere, VF Corp. has more than recovered from last week's market dive.
On Monday, analysts at Stifel Nicolaus upgraded VF to buy and boosted their price target to 91 from 78, citing healthy inventories, strong consumer sentiment and spending power, as well as more favorable foreign exchange rates.
IBD'S TAKE:Buying or holding a stock can be risky heading into an earnings report. Here's anearnings options strategythat can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.
Other Earnings
The companies behind a range of packaged foods and drinks come out Friday, following strong results from snack and beverage giant PepsiCo (PEP) earlier this week. Higher ingredient prices and shifting consumer tastes toward healthier fare are likely to be recurrent themes.
Campbell Soup: EPS down 11% to 81 cents; revenue flat at $2.17 billion.
Kraft Heinz: EPS up 5.5% to 96 cents; revenue up 0.6% to $6.9 billion.
Smucker: EPS up 8% to $2.16; revenue up 0.5% to $1.89 billion.
Coca-Cola: EPS up 2.7% to 38 cents; revenue down 21.7% to $7.365 billion.
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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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[ibd-display-video id=3149582 width=50 float=left autostart=true] Three highly rated companies will lead the earnings charge: IPG Photonics ( IPGP ), Deere ( DE ) and VF Corp. ( VFC ). On Monday, analysts at Stifel Nicolaus upgraded VF to buy and boosted their price target to 91 from 78, citing healthy inventories, strong consumer sentiment and spending power, as well as more favorable foreign exchange rates. China, in particular, has been a growth driver for the company, it added.
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[ibd-display-video id=3149582 width=50 float=left autostart=true] Three highly rated companies will lead the earnings charge: IPG Photonics ( IPGP ), Deere ( DE ) and VF Corp. ( VFC ). China, in particular, has been a growth driver for the company, it added. Deere The maker of farm and construction equipment reports fiscal Q1 earnings early.
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[ibd-display-video id=3149582 width=50 float=left autostart=true] Three highly rated companies will lead the earnings charge: IPG Photonics ( IPGP ), Deere ( DE ) and VF Corp. ( VFC ). China, in particular, has been a growth driver for the company, it added. Deere The maker of farm and construction equipment reports fiscal Q1 earnings early.
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On Monday, analysts at Stifel Nicolaus upgraded VF to buy and boosted their price target to 91 from 78, citing healthy inventories, strong consumer sentiment and spending power, as well as more favorable foreign exchange rates. [ibd-display-video id=3149582 width=50 float=left autostart=true] Three highly rated companies will lead the earnings charge: IPG Photonics ( IPGP ), Deere ( DE ) and VF Corp. ( VFC ). China, in particular, has been a growth driver for the company, it added.
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fa4f30bc-9712-4540-846b-51610655e7d5
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722095.0
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2018-02-15 00:00:00 UTC
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Pre-Market Earnings Report for February 16, 2018 : KO, KHC, DE, VFC, ENB, DTE, VMC, CPB, SJM, IPGP, NWL, AEE
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https://www.nasdaq.com/articles/pre-market-earnings-report-february-16-2018-ko-khc-de-vfc-enb-dte-vmc-cpb-sjm-ipgp-nwl-aee
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The following companies are expected to report earnings prior to market open on 02/16/2018. Visit our Earnings Calendar for a full list of expected earnings releases.
Coca-Cola Company ( KO ) is reporting for the quarter ending December 31, 2017. The beverages company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.38. This value represents a 2.70% increase compared to the same quarter last year. KO missed the consensus earnings per share in the 1st calendar quarter of 2017 by -2.27%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for KO is 23.09 vs. an industry ratio of 98.30.
The Kraft Heinz Company ( KHC ) is reporting for the quarter ending December 31, 2017. The food company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.96. This value represents a 5.49% increase compared to the same quarter last year. KHC missed the consensus earnings per share in the 1st calendar quarter of 2017 by -1.18%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for KHC is 19.92 vs. an industry ratio of 50.80.
Deere & Company ( DE ) is reporting for the quarter ending January 31, 2018. The farm machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.16. This value represents a 90.16% increase compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 7.53%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 19.74 vs. an industry ratio of 16.20, implying that they will have a higher earnings growth than their competitors in the same industry.
V.F. Corporation ( VFC ) is reporting for the quarter ending December 31, 2017. The textile company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.02. This value represents a 5.15% increase compared to the same quarter last year. In the past year VFC has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for VFC is 27.62 vs. an industry ratio of 7.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2017. The oil (production/pipeline) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.42. This value represents a no change for the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for ENB is 22.27 vs. an industry ratio of 23.00.
DTE Energy Company ( DTE ) is reporting for the quarter ending December 31, 2017. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.20. This value represents a 48.15% increase compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for DTE is 18.27 vs. an industry ratio of 17.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Vulcan Materials Company ( VMC ) is reporting for the quarter ending December 31, 2017. The building company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.72. This value represents a 4.35% increase compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for VMC is 43.06 vs. an industry ratio of 18.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Campbell Soup Company ( CPB ) is reporting for the quarter ending January 31, 2018. The food company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.81. This value represents a 10.99% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CPB is 15.92 vs. an industry ratio of 50.80.
J.M. Smucker Company ( SJM ) is reporting for the quarter ending January 31, 2018. The food company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.16. This value represents a 8.00% increase compared to the same quarter last year. SJM missed the consensus earnings per share in the 3rd calendar quarter of 2017 by -6.21%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for SJM is 15.45 vs. an industry ratio of 50.80.
IPG Photonics Corporation ( IPGP ) is reporting for the quarter ending December 31, 2017. The laser systems company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.72. This value represents a 23.74% increase compared to the same quarter last year. IPGP missed the consensus earnings per share in the 4th calendar quarter of 2016 by -1.42%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for IPGP is 35.41 vs. an industry ratio of 41.30.
Newell Brands Inc. ( NWL ) is reporting for the quarter ending December 31, 2017. The consumer company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.67. This value represents a 16.25% decrease compared to the same quarter last year. NWL missed the consensus earnings per share in the 3rd calendar quarter of 2017 by -6.52%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for NWL is 9.96 vs. an industry ratio of 28.80.
Ameren Corporation ( AEE ) is reporting for the quarter ending December 31, 2017. The electric power utilities company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.33. This value represents a 153.85% increase compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for AEE is 19.60 vs. an industry ratio of 17.90, 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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Coca-Cola Company ( KO ) is reporting for the quarter ending December 31, 2017. The Kraft Heinz Company ( KHC ) is reporting for the quarter ending December 31, 2017. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2018.
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Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 19.74 vs. an industry ratio of 16.20, implying that they will have a higher earnings growth than their competitors in the same industry. Coca-Cola Company ( KO ) is reporting for the quarter ending December 31, 2017. The Kraft Heinz Company ( KHC ) is reporting for the quarter ending December 31, 2017.
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Zacks Investment Research reports that the 2018 Price to Earnings ratio for DE is 19.74 vs. an industry ratio of 16.20, implying that they will have a higher earnings growth than their competitors in the same industry. Coca-Cola Company ( KO ) is reporting for the quarter ending December 31, 2017. The Kraft Heinz Company ( KHC ) is reporting for the quarter ending December 31, 2017.
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In the past year DE has beat the expectations every quarter. Coca-Cola Company ( KO ) is reporting for the quarter ending December 31, 2017. The Kraft Heinz Company ( KHC ) is reporting for the quarter ending December 31, 2017.
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b3513673-44ce-4d01-be18-ca024756860b
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722096.0
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2018-02-14 00:00:00 UTC
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These 5 Companies are Earnings Perfection
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DE
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https://www.nasdaq.com/articles/these-5-companies-are-earnings-perfection-2018-02-14
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Earnings season isn't over yet. This week, there are still several hundred companies reporting, including some of the most famous names in business.
But not every company has a great earnings track record. It's not easy to beat every quarter, or nearly every quarter, for years at a time. It's rare.
It takes good management and a relationship with analysts who clearly know the company. Sometimes it even takes a little bit of luck.
These 5 companies, though, are doing it.
Can they keep their perfect earnings records intact in 2018?
Companies with Perfect Earnings Surprise Records
1. Shopify SHOP hasn't missed since it's 2015 IPO. Not only that, it's earnings beats have been large nearly every quarter. It's not just beating by a penny. When will the analysts catch up to the good news?
2. Shake Shack SHAK is an example of the principle that the beat isn't everything. Just because a company hasn't missed since its 2015 IPO, doesn't mean that the shares are necessarily going to skyrocket. With Shake Shack, same-shack-sales also come into play. Watch labor costs as well this quarter.
3. AMN Healthcare AMN is overlooked by investors even though it hasn't missed in 5 years and the shares are hitting new 5-year highs. This medical staffing company seems to be in the right niche just as the economy is heating up.
4. CBS Corporation CBS hasn't missed in 5 years either, but shares have been all over the map during that time. They have again pulled back off the high. Will the earnings report turn the shares around?
5. Deere & Company DE has a heck of a track record, with no misses in the last 5 years. It managed expectations well in 2013 through 2016 when the agriculture industry went into the doldrums and farmers stopped buying new equipment. It often lowered guidance ahead of time to keep its track record intact. But now, it appears to be a hot construction equipment market which is driving the stock. With shares near 5-year highs, has it lost control of expectations?
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See the pot trades we're targeting>>
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CBS Corporation (CBS): Free Stock Analysis Report
Shopify Inc. (SHOP): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Shake Shack, Inc. (SHAK): 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 has a heck of a track record, with no misses in the last 5 years. Looking for Stocks with Skyrocketing Upside? See the pot trades we're targeting>> Want the latest recommendations from Zacks Investment Research?
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Click to get this free report CBS Corporation (CBS): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Shake Shack, Inc. (SHAK): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company DE has a heck of a track record, with no misses in the last 5 years. Looking for Stocks with Skyrocketing Upside?
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Click to get this free report CBS Corporation (CBS): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Shake Shack, Inc. (SHAK): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company DE has a heck of a track record, with no misses in the last 5 years. Looking for Stocks with Skyrocketing Upside?
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Deere & Company DE has a heck of a track record, with no misses in the last 5 years. Looking for Stocks with Skyrocketing Upside? See the pot trades we're targeting>> Want the latest recommendations from Zacks Investment Research?
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8c4240f8-a95d-43d3-8111-cdb9c60c89db
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722097.0
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2018-02-14 00:00:00 UTC
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Notable Wednesday Option Activity: CSX, TAP, DE
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-csx-tap-de-2018-02-14
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in CSX Corp (Symbol: CSX), where a total of 41,740 contracts have traded so far, representing approximately 4.2 million underlying shares. That amounts to about 52.7% of CSX's average daily trading volume over the past month of 7.9 million shares. Particularly high volume was seen for the $55 strike put option expiring February 16, 2018 , with 14,894 contracts trading so far today, representing approximately 1.5 million underlying shares of CSX. Below is a chart showing CSX's trailing twelve month trading history, with the $55 strike highlighted in orange:
Molson Coors Brewing Co. (Symbol: TAP) saw options trading volume of 7,083 contracts, representing approximately 708,300 underlying shares or approximately 48.6% of TAP's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $77 strike call option expiring February 16, 2018 , with 1,016 contracts trading so far today, representing approximately 101,600 underlying shares of TAP. Below is a chart showing TAP's trailing twelve month trading history, with the $77 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 10,367 contracts, representing approximately 1.0 million underlying shares or approximately 48.2% of DE's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $150 strike put option expiring February 23, 2018 , with 1,124 contracts trading so far today, representing approximately 112,400 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 CSX options , TAP 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 $55 strike put option expiring February 16, 2018 , with 14,894 contracts trading so far today, representing approximately 1.5 million underlying shares of CSX. Especially high volume was seen for the $77 strike call option expiring February 16, 2018 , with 1,016 contracts trading so far today, representing approximately 101,600 underlying shares of TAP. Especially high volume was seen for the $150 strike put option expiring February 23, 2018 , with 1,124 contracts trading so far today, representing approximately 112,400 underlying shares of DE.
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Particularly high volume was seen for the $55 strike put option expiring February 16, 2018 , with 14,894 contracts trading so far today, representing approximately 1.5 million underlying shares of CSX. Below is a chart showing CSX's trailing twelve month trading history, with the $55 strike highlighted in orange: Molson Coors Brewing Co. (Symbol: TAP) saw options trading volume of 7,083 contracts, representing approximately 708,300 underlying shares or approximately 48.6% of TAP's average daily trading volume over the past month, of 1.5 million shares. Below is a chart showing TAP's trailing twelve month trading history, with the $77 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 10,367 contracts, representing approximately 1.0 million underlying shares or approximately 48.2% of DE's average daily trading volume over the past month, of 2.2 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in CSX Corp (Symbol: CSX), where a total of 41,740 contracts have traded so far, representing approximately 4.2 million underlying shares. Below is a chart showing CSX's trailing twelve month trading history, with the $55 strike highlighted in orange: Molson Coors Brewing Co. (Symbol: TAP) saw options trading volume of 7,083 contracts, representing approximately 708,300 underlying shares or approximately 48.6% of TAP's average daily trading volume over the past month, of 1.5 million shares. Below is a chart showing TAP's trailing twelve month trading history, with the $77 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 10,367 contracts, representing approximately 1.0 million underlying shares or approximately 48.2% of DE's average daily trading volume over the past month, of 2.2 million shares.
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Particularly high volume was seen for the $55 strike put option expiring February 16, 2018 , with 14,894 contracts trading so far today, representing approximately 1.5 million underlying shares of CSX. Especially high volume was seen for the $77 strike call option expiring February 16, 2018 , with 1,016 contracts trading so far today, representing approximately 101,600 underlying shares of TAP. Below is a chart showing TAP's trailing twelve month trading history, with the $77 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 10,367 contracts, representing approximately 1.0 million underlying shares or approximately 48.2% of DE's average daily trading volume over the past month, of 2.2 million shares.
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2018-02-13 00:00:00 UTC
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Earnings Season Ain't Over: 3 Stocks Likely to Beat Estimates This Week
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https://www.nasdaq.com/articles/earnings-season-aint-over-3-stocks-likely-beat-estimates-week-2018-02-13
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Stocks opened lower on Tuesday morning, suggesting that celebrations over the end of the recent sell-off may have been premature. Markets looked prime to bounce back strong from their worst week in two years after Monday's strong gains, but investors have again been reminded that volatility appears to be back in play.
What is most interesting about the recent market volatility is that it comes on the back of a strong earnings season. Critics will point to large disparities between GAAP and non-GAAP results-created by one-time tax reform charges-as a reason to be skeptical, but revenue growth was truly impressive, and guidance was encouraging across the board.
We have certainly moved past the busy stretch of Q4 earnings season, but a few marquee reports are still trickling in. Athletic retail giant Under Armour UAA just announced its latest results this morning, and tech giants like Cisco Systems CSCO and Applied Materials AMAT are expected later this week.
With that said, one of the best ways for investors to avoid the possibility of continued volatility over the next few trading periods is to target companies that are likely to outperform earnings estimates. Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Today, we are giving our readers a very special treat: a free look at three of the strongest stocks that are popping up on our Earnings ESP Screener right now. Check them out:
1. Warrior Met Coal, Inc. (HCC)
Warrior Met Coal is a producer and exporter of premium metallurgical coal, operating primarily in Alabama. The company is scheduled to release its brand-new quarterly report after the market closes on Feb. 14. HCC is currently sporting a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of 5.00%.
Based on our current consensus estimates, we expect Warrior Met to report earnings of $1.00 per share and total revenues of $227.72 million. The stock's Most Accurate Estimate, which is the representation of the most recent analyst predictions, is calling for earnings of $1.05 per share.
2. Huntington Ingalls Industries, Inc. (HII)
Huntington Ingalls designs, builds, and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe. The defense firm is scheduled to release its latest report before the market opens on Feb. 15. HII is currently holding a Zacks Rank #1 (Strong Buy) and an Earnings ESP of 5.32%.
Our overall consensus estimates are calling for earnings of $2.92 per share and revenues of $2.01 billion. These results would represent growth rates of -20.4% and +4.3%, respectively, from the year-ago period.
3. Deere & Company (DE)
Deere & Company, the parent of the John Deere brand, builds agricultural, construction, and lawn care equipment. The famous American manufacturer is scheduled to release its latest quarterly earnings report before the opening bell on Feb. 16. DE is currently sporting a Zacks Rank #2 (Buy) and has an Earnings ESP of 4.89%.
According to our latest consensus estimates, Deere & Company is expected to report earnings of $1.13 per share and revenues of $6.40 billion. These results would represent year-over-year growth of 85.3% and 36.3%, respectively.
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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.
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report
Warrior Met Coal Inc. (HCC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Under Armour, Inc. (UAA): 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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Markets looked prime to bounce back strong from their worst week in two years after Monday's strong gains, but investors have again been reminded that volatility appears to be back in play. Athletic retail giant Under Armour UAA just announced its latest results this morning, and tech giants like Cisco Systems CSCO and Applied Materials AMAT are expected later this week. Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat.
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Athletic retail giant Under Armour UAA just announced its latest results this morning, and tech giants like Cisco Systems CSCO and Applied Materials AMAT are expected later this week. According to our latest consensus estimates, Deere & Company is expected to report earnings of $1.13 per share and revenues of $6.40 billion. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Warrior Met Coal Inc. (HCC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here.
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A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. According to our latest consensus estimates, Deere & Company is expected to report earnings of $1.13 per share and revenues of $6.40 billion. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Warrior Met Coal Inc. (HCC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here.
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According to our latest consensus estimates, Deere & Company is expected to report earnings of $1.13 per share and revenues of $6.40 billion. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Warrior Met Coal Inc. (HCC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Markets looked prime to bounce back strong from their worst week in two years after Monday's strong gains, but investors have again been reminded that volatility appears to be back in play.
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ad397e2e-49f7-4317-94cb-978042518372
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722099.0
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2018-02-13 00:00:00 UTC
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Deere (DE) to Report Q1 Earnings: What's in the Offing?
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DE
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https://www.nasdaq.com/articles/deere-de-to-report-q1-earnings%3A-whats-in-the-offing-2018-02-13
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nan
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nan
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Deere & CompanyDE is set to report first-quarter fiscal 2018 results on Feb 15, before the market opens.
Last quarter, Deere delivered a positive earnings surprise of 7.5%. The company's surprise history has been impressive. It beat estimates in each of the trailing four quarters, with an average positive earnings surprise of 19.52%. Over the last 30 days, the Zacks Consensus Estimate for the fiscal first-quarter's earnings remained unchanged at $1.13.
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
Deere projects total equipment sales to increase about 38% year over year in the fiscal first quarter. The forecast includes a positive foreign-currency translation impact of about 3%. The Zacks Consensus Estimate for the first-quarter fiscal sales is pegged at $6.4 billion, reflecting year-over-year growth of 36%. The outlook reflects Deere's solid order book based on industry activities and positive trend in retail sales.
In addition, the Wirtgen acquisition is anticipated to drive Deere's results as well. In December 2017, Deere acquired this road-construction equipment maker for $4.6 billion. The buyout will help expand its North America-centric construction business globally and catapult it to the position of an industry leader in the road construction space. Moreover, Wirtgen is expected to add about 6% to Deere's sales for the fiscal first quarter.
Our Consensus Estimates indicate that net sales of Deere's Agriculture and Turf equipment segment will reach $4.41 billion in the fiscal first quarter, rising around 22.5% year over year. The Zacks Consensus Estimate for Construction & Forestry equipment sales is pegged at $1.78 billion for the to-be-reported quarter, reflecting year-over-year growth of 31.8%. The estimate for the Financial Services segment's sales is $800 million, reflecting year-over-year growth of 15%.
Notably, the Zacks Consensus Estimate for earnings per share is pegged at $1.13 for the fiscal first quarter, reflecting remarkable year-over-year growth of 85%. Improved operational performance due to disciplined cost management, and continued investment in innovative technology and solutions will drive the company's performance.
Earnings Whispers
Our proven model shows that Deere 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.
Zacks ESP: The Earnings ESP for Deere is +4.89%. This is because the Most Accurate estimate of $1.18 comes in higher than the Zacks Consensus Estimate of $1.13. 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: Deere currently carries a Zacks Rank #2. 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 Deere's Zacks Rank #2 and Earnings ESP of +4.89% makes us confident of a likely earnings beat.
Share Price Performance
The company's price performance has been impressive over the past year. Its shares have rallied 43.7% in a year's time, outperforming the industry 's gain of 33.1%.
Stocks to Consider
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:
Altra Industrial Motion Corp. AIMC , with an Earnings ESP of +1.03% and a Zacks Rank #3. Its shares have gained 3.1%, over the past six months. You can see the complete list of today's Zacks #1 Rank stocks here .
Brady Corporation BRC , with an Earnings ESP of +0.57% and a Zacks Rank #3. The stock has appreciated 11.5% in six months' time.
Hyster-Yale Materials Handling, Inc. HY , with an Earnings ESP of +5.70% and a Zacks Rank #3. The company's shares have been up 14.1% during the same time frame.
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
Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
Hyster-Yale Materials Handling, Inc. (HY): Free Stock Analysis Report
Brady Corporation (BRC): 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 outlook reflects Deere's solid order book based on industry activities and positive trend in retail sales. Deere & CompanyDE is set to report first-quarter fiscal 2018 results on Feb 15, before the market opens. Last quarter, Deere delivered a positive earnings surprise of 7.5%.
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Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Key Factors to Consider Deere projects total equipment sales to increase about 38% year over year in the fiscal first quarter. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Hyster-Yale Materials Handling, Inc. (HY): Free Stock Analysis Report Brady Corporation (BRC): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is set to report first-quarter fiscal 2018 results on Feb 15, before the market opens.
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Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Key Factors to Consider Deere projects total equipment sales to increase about 38% year over year in the fiscal first quarter. Stocks to Consider 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: Altra Industrial Motion Corp. AIMC , with an Earnings ESP of +1.03% and a Zacks Rank #3. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Hyster-Yale Materials Handling, Inc. (HY): Free Stock Analysis Report Brady Corporation (BRC): Free Stock Analysis Report To read this article on Zacks.com click here.
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Last quarter, Deere delivered a positive earnings surprise of 7.5%. Our Consensus Estimates indicate that net sales of Deere's Agriculture and Turf equipment segment will reach $4.41 billion in the fiscal first quarter, rising around 22.5% year over year. Deere & CompanyDE is set to report first-quarter fiscal 2018 results on Feb 15, before the market opens.
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3baa0eb1-e6ec-4545-ad8e-ea2a4743c057
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