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722200.0
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2017-11-29 00:00:00 UTC
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3 Industrial Stocks to Buy As Tech Dips
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DE
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https://www.nasdaq.com/articles/3-industrial-stocks-buy-tech-dips-2017-11-29
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nan
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nan
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Shares of technology giants, from Amazon AMZN to Apple AAPL , sank on Wednesday, only one day after helping send markets to new highs.
The tech sector has thrived in 2017. It has, at times, almost single-handedly helped prop up the S&P 500 and spurred on the NASDAQ. Yet, after a solid third-quarter from some of the biggest technology companies, it seems that investors wanted to take home some of their profits. This led to a nearly industry-wide, one-day selloff on Wednesday (also read: Why Are Tech Stocks Falling Today?) .
With this said, it might actually be a good time to consider companies that operate in industries that might be viewed as "old school"-even though they still rake in billions in revenue and turn massive profits.
Let's take a look at three stocks from two of these industries-farming and manufacturing-that once drove the American economy.
Deere & Company DE
Shares of this manufacturer of agricultural and farming equipment surged to hit a new 52-week high of $149.20 per share on Wednesday. The climb is part of a yearlong rally that has seen Deere & Company's stock price ascend 48.86%, which includes a 12.42% boost over the last 12 weeks.
Looking ahead slightly, Deere & Company's current quarterly revenues are projected to climb 36.26% to $6.40 billion,based on our current Zacks Consensus Estimates. On top of that, the company's EPS is expected to skyrocket 70.67% for the quarter. What's more, Deere & Company's cash flow growth of 25.65% crushes its industry's 7.02% decline and helps demonstrate the company's growing cash position.
The maker of John Deere equipment also earned a "B" grade for Value in our Style Scores system. Deere & Company is currently trading at 19.22x earnings, which marks a discount compared to the "Manufacturing - Farm Equipment" industry's average. The company's 1.61 P/S ratio matches the industry average and helps to further demonstrate the stock's value.
Deere & Company is also currently a Zacks Rank #1 (Strong Buy) and boasts an overall "B" VGM score. Lastly, the company has met or topped earnings estimates every quarter since the start of 2013.
Briggs & Stratton Corporation BGG
Briggs & Stratton Corporation is currently a Zacks Rank #1 (Strong Buy) and also scores an overall "B" VGM score. Shares of Briggs & Stratton have climbed over 20% in the last 12 weeks and currently sit just below their 52-week high of $25.95 per share.
This maker of air-cooled gasoline engines for outdoor power equipment is currently trading at 16.59x earnings, which marks a substantial discount compared to its industry's average.
Briggs & Stratton's price to book ratio of 1.95 presents a discount against competitors such as Alamo Group ALG . The company's P/S ratio of 0.58 helps to demonstrate that this stock offers investors great bang for their buck.
The company's full-year revenues are projected to pop 6.54% to hit $1.9 billion, based on our current Zacks Consensus Estimates. And for the full-year, Briggs & Stratton's earnings per share are expected to hit $1.49, which would mark a 13.99% year-over-year jump.
Caterpillar Inc. CAT
Shares of this manufacturing equipment giant have been on a torrid pace this year, having jumped 49.87% already. Caterpillar's stock price jumped 17.49% in the last 12-weeks alone and sits just below their 52-week high of $140.44 per share.
Caterpillar's strong upward trajectory could be poised to continue as our consensus estimates call for outstanding top and bottom line growth. The company's fourth-quarter earnings are projected to skyrocket 103.31% and 87% for the full-year.
On top of that, Caterpillar's Q4 sales are expected to climb 24.90% to $11.96 billion. For the full-year, our estimates are calling for CAT's revenues to reach $44.44 billion, which would mark a 15.31% year-over-year jump.
Furthermore, within the last 60 days, Caterpillar has received eight upward earnings estimates revisions for its current quarter against no downgrades. Within this same time frame, the company has also earned 10 full-year upward revisions.
Caterpillar is currently a Zacks Rank #1 (Strong Buy). Lastly, the manufacturing equipment firm has failed to meet earnings estimates only once since the start of 2014.
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Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
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
Alamo Group, Inc. (ALG): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): 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.
|
It has, at times, almost single-handedly helped prop up the S&P 500 and spurred on the NASDAQ. This led to a nearly industry-wide, one-day selloff on Wednesday (also read: Why Are Tech Stocks Falling Today?) With this said, it might actually be a good time to consider companies that operate in industries that might be viewed as "old school"-even though they still rake in billions in revenue and turn massive profits.
|
Looking ahead slightly, Deere & Company's current quarterly revenues are projected to climb 36.26% to $6.40 billion,based on our current Zacks Consensus Estimates. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report To read this article on Zacks.com click here. It has, at times, almost single-handedly helped prop up the S&P 500 and spurred on the NASDAQ.
|
Looking ahead slightly, Deere & Company's current quarterly revenues are projected to climb 36.26% to $6.40 billion,based on our current Zacks Consensus Estimates. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report To read this article on Zacks.com click here. It has, at times, almost single-handedly helped prop up the S&P 500 and spurred on the NASDAQ.
|
It has, at times, almost single-handedly helped prop up the S&P 500 and spurred on the NASDAQ. This led to a nearly industry-wide, one-day selloff on Wednesday (also read: Why Are Tech Stocks Falling Today?) With this said, it might actually be a good time to consider companies that operate in industries that might be viewed as "old school"-even though they still rake in billions in revenue and turn massive profits.
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c82afe22-d4ba-4eca-93e7-da6b741f0731
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722201.0
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2017-11-28 00:00:00 UTC
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Avery Dennison (AVY) Hits 52-Week High: What's Driving It?
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DE
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https://www.nasdaq.com/articles/avery-dennison-avy-hits-52-week-high%3A-whats-driving-it-2017-11-28
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nan
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nan
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On Nov 27, Avery Dennison CorporationAVY crafted a 52-week high of $112.28 during intra-day trading, finally closing lower at $111.92.
Investors are optimistic on this Zacks Rank #2 (Buy) company's focus on productivity and cost control. Its raised guidance for full-year 2017 has also boosted their confidence.
Avery Dennison has a market cap of $9.9 billion. The average volume of shares traded over the last three months is approximately 630.6K. We note that the company has beaten the Zacks Consensus Estimate in each of the trailing four quarters - the average positive earnings surprise being 6.85%.
The stock has gained 53.4% in a year's time, higher than the S&P 500's gain of 18.3%. Avery Dennison has also outperformed the industry 's gain of 42.2% with respect to share price movement during the same time frame.
What's Driving Avery Dennison?
During the third-quarter conference call, Avery Dennison raised its guidance for 2017 on the back of continued execution of strategies, which will enhance competitive advantage while driving profitable growth and improving returns. For 2017, the company lifted the adjusted earnings per share guidance range to $4.90-$4.95 and sales growth to around 8%.
Notably, Avery Dennison's aggressive cost-cutting and restructuring activities are likely to lead to improved savings and boost earnings. The company anticipates incremental restructuring savings of approximately $50-$55 million in 2017.
Further, Avery Dennison believes its Industrial and Healthcare Materials segment will likely benefit from the Yongle, Finesse and Mactac acquisitions. The company also remains focused on its efforts to drive productivity. Its Label and Graphic Materials segment will likely benefit from growth in emerging market regions, including high single-digit growth in India and China.
Avery Dennison's Retail Branding and Information Solutions segment continues to perform well on the back of its business-model transformation that has enabled it to gain share market share while driving significant margin expansion. In addition, the company has enhanced the segment's competitiveness through strategic pricing initiatives.
Furthermore, Avery Dennison's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead. Estimates for Avery Dennison have moved up over the past 30 days, reflecting analysts' bullish outlook. The earnings estimate has moved up 1.9% and 2.3% for 2017 and 2018, respectively.
Avery Dennison Corporation Price and Consensus
Avery Dennison Corporation Price and Consensus | Avery Dennison Corporation Quote
Other Stocks to Consider
Other top-ranked stocks in the same space include Caterpillar Inc. CAT , Deere & Company DE and ACCO Brands Corporation ACCO . While Caterpillar and Deere flaunt a Zacks Rank of 1 (Strong Buy), ACCO Brands carries a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has a long-term earnings growth rate of 10.3%. Its shares have been up 47.9% year to date.
Deere has a long-term earnings growth rate of 8%. So far this year, its shares have rallied 44.4%.
ACCO Brands has a long-term earnings growth rate of 10%. Its shares have gained 0.7% year to date.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Avery Dennison Corporation (AVY): Free Stock Analysis Report
Acco Brands Corporation (ACCO): 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.
|
During the third-quarter conference call, Avery Dennison raised its guidance for 2017 on the back of continued execution of strategies, which will enhance competitive advantage while driving profitable growth and improving returns. Further, Avery Dennison believes its Industrial and Healthcare Materials segment will likely benefit from the Yongle, Finesse and Mactac acquisitions. Furthermore, Avery Dennison's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead.
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During the third-quarter conference call, Avery Dennison raised its guidance for 2017 on the back of continued execution of strategies, which will enhance competitive advantage while driving profitable growth and improving returns. Avery Dennison Corporation Price and Consensus Avery Dennison Corporation Price and Consensus | Avery Dennison Corporation Quote Other Stocks to Consider Other top-ranked stocks in the same space include Caterpillar Inc. CAT , Deere & Company DE and ACCO Brands Corporation ACCO . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Furthermore, Avery Dennison's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead. Avery Dennison Corporation Price and Consensus Avery Dennison Corporation Price and Consensus | Avery Dennison Corporation Quote Other Stocks to Consider Other top-ranked stocks in the same space include Caterpillar Inc. CAT , Deere & Company DE and ACCO Brands Corporation ACCO . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Avery Dennison has also outperformed the industry 's gain of 42.2% with respect to share price movement during the same time frame. What's Driving Avery Dennison? On Nov 27, Avery Dennison CorporationAVY crafted a 52-week high of $112.28 during intra-day trading, finally closing lower at $111.92.
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db504692-4111-4429-ab6c-8a0dea84f306
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722202.0
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2017-11-28 00:00:00 UTC
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Deere (DE) Hits 52-Week High on Strong Q4 & Upbeat FY18 View
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DE
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https://www.nasdaq.com/articles/deere-de-hits-52-week-high-on-strong-q4-upbeat-fy18-view-2017-11-28
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nan
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nan
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Shares of Deere & CompanyDE scaled a fresh 52-week high of $148.83 on Nov 27, eventually closing lower at $148.77. The upswing stemmed from Deere's solid performance in fiscal 2017 as well as an encouraging outlook for fiscal 2018.
The company has a market cap of $47.8 billion. Over the last three months, its average volume of shares traded has been approximately 2.3M. Also, Deere surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive earnings surprise of 19.52%.
Price Performance
Notably, the stock has gained 48.2% in a year's time, higher than the S&P 500's gain of 17%. Deere has also outperformed the industry 's gain of 40.3% during the same time frame with respect to price performance.
Favorable Rank & Style Score
Investors are optimistic on this Zacks Rank #1 (Strong Buy) company, backed by Deere's strong order activity, anticipated acquisition of Wirtgen Group and promising U.S. GDP growth.
Further, Deere has an impressive VGM Score of B. In this V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score eliminates the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
Our research shows that stocks with Style Scores of A or B, when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3, offer the best investment opportunities.
What Led to the 52-week High?
Deere's shares have gained nearly 7% since it reported fourth-quarter and fiscal 2017 results on Nov 22. Its earnings surged around 74% year over year and surpassed the Zacks Consensus Estimate. Net sales of equipment operations also climbed 26% year over year.
Notably, Deere's Agriculture & Turf segment sales, comprising 77% of revenues, rose 22% year over year in the fiscal fourth quarter, primarily due to higher volumes and a favorable sales mix. In addition, the Construction & Forestry segment's sales improved 37% year over year attributable to higher volumes, better price realization, and favorable foreign exchange currency hedging.
Deere projects total equipment sales to be up nearly 38% year over year in first-quarter fiscal 2018 and 22% in fiscal 2018 compared with the year-ago periods. For fiscal 2018, the company guides net sales to rise roughly 19% year over year, and projects net income of about $2.6 billion.
Further, the construction investment is forecast to grow in 2018, led by oil and gas, and residential activity. Oil prices are expected to be above $50, which is important since oil and gas-related activity tends to slow when oil prices are below $50 and picks up when prices are above that level. Additionally, machinery rental utilization rates continue to improve and rental pricing is also gaining traction.
Deere's strong order activity in both early-order programs for seasonal products and order book for large tractors also supports the outlook. Its upbeat outlook is also backed by U.S. GDP, which is anticipated to be up 2.5% in fiscal 2018. Also, crude oil prices are expected to rise, which will encourage crude oil production and improve construction equipment demand.
Wirtgen Acquisition to be a Growth Driver
Deere expects the acquisition of the Wirtgen Group to close in December 2017. The buyout is expected to contribute about $3.1 billion in net sales in fiscal 2018. Wirtgen is likely to add about 12% to Deere's sales for the fiscal year and about 6% for the fiscal first quarter in comparison with fiscal 2017. After estimating expenses for purchase accounting and transaction costs, Wirtgen is expected to contribute about $75 million to operating profit and about $25 million to net income in fiscal 2018.
Upward Estimate Revisions
Furthermore, Deere's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead. Estimates for Deere have moved up over the past seven days, reflecting analysts' bullish sentiments. The earnings estimate for fiscal 2018 has gone up 4.7%, while that of fiscal 2019 moved up 6%.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
The above-mentioned tailwinds raised investors' optimism on the stock and are anticipated to boost the company's share price in the days ahead.
Other Stocks to Consider
Other top-ranked stocks in the same space include Caterpillar Inc. CAT , ACCO Brands Corporation ACCO and Avery Dennison Corporation AVY . While Caterpillar flaunts a Zacks Rank of 1, ACCO Brands and Avery Dennison carry a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has a long-term earnings growth rate of 10.3%. Its shares have been up 47.9% year to date.
ACCO Brands has a long-term earnings growth rate of 10%. Its shares have gained 0.7% during the same time frame.
Avery Dennison has a long-term earnings growth rate of 7%. Its shares have gained 59.4% during the same time frame.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Avery Dennison Corporation (AVY): Free Stock Analysis Report
Acco Brands Corporation (ACCO): 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.
|
Shares of Deere & CompanyDE scaled a fresh 52-week high of $148.83 on Nov 27, eventually closing lower at $148.77. Also, Deere surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive earnings surprise of 19.52%. Favorable Rank & Style Score Investors are optimistic on this Zacks Rank #1 (Strong Buy) company, backed by Deere's strong order activity, anticipated acquisition of Wirtgen Group and promising U.S. GDP growth.
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Favorable Rank & Style Score Investors are optimistic on this Zacks Rank #1 (Strong Buy) company, backed by Deere's strong order activity, anticipated acquisition of Wirtgen Group and promising U.S. GDP growth. Other Stocks to Consider Other top-ranked stocks in the same space include Caterpillar Inc. CAT , ACCO Brands Corporation ACCO and Avery Dennison Corporation AVY . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Upward Estimate Revisions Furthermore, Deere's positive estimate revisions reflect optimism in the company's potential, as earnings growth is often an indication of robust prospects (and stock price gains) ahead. Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote The above-mentioned tailwinds raised investors' optimism on the stock and are anticipated to boost the company's share price in the days ahead. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Acco Brands Corporation (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Favorable Rank & Style Score Investors are optimistic on this Zacks Rank #1 (Strong Buy) company, backed by Deere's strong order activity, anticipated acquisition of Wirtgen Group and promising U.S. GDP growth. Shares of Deere & CompanyDE scaled a fresh 52-week high of $148.83 on Nov 27, eventually closing lower at $148.77. The upswing stemmed from Deere's solid performance in fiscal 2017 as well as an encouraging outlook for fiscal 2018.
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25e4c5fe-6b12-4d61-b304-ca6ce311c0bb
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722203.0
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2017-11-28 00:00:00 UTC
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Deere & Company (DE): Strong Industry, Solid Earnings Estimate Revisions
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DE
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https://www.nasdaq.com/articles/deere-company-de%3A-strong-industry-solid-earnings-estimate-revisions-2017-11-28
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nan
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nan
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One stock that might be an intriguing choice for investors right now is Deere & CompanyDE . This is because this security in the Manufacturing - Farm Equipment space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Manufacturing - Farm Equipment space as it currently has a Zacks Industry Rank of 17 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Deere & Company is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
Deere & Company Price and Consensus
Deere & Company Price and Consensus | Deere & Company Quote
In fact, over the past month, current quarter estimates have risen from 88 cents per share to 96 cents per share, while current year estimates have risen from $6.91 per share to $7.21 per share. This has helped DE to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. You can see the complete list of today's Zacks #1 Rank stocks here .
So, if you are looking for a decent pick in a strong industry, consider Deere & Company. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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.
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.
|
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This has helped DE to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. One stock that might be an intriguing choice for investors right now is Deere & CompanyDE .
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Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote In fact, over the past month, current quarter estimates have risen from 88 cents per share to 96 cents per share, while current year estimates have risen from $6.91 per share to $7.21 per share. One stock that might be an intriguing choice for investors right now is Deere & CompanyDE . This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board.
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Deere & Company Price and Consensus Deere & Company Price and Consensus | Deere & Company Quote In fact, over the past month, current quarter estimates have risen from 88 cents per share to 96 cents per share, while current year estimates have risen from $6.91 per share to $7.21 per share. One stock that might be an intriguing choice for investors right now is Deere & CompanyDE . This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board.
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One stock that might be an intriguing choice for investors right now is Deere & CompanyDE . This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. Meanwhile, Deere & Company is actually looking pretty good on its own too.
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8e2abdc5-ec32-4085-b9d2-8ef5ba48f1c5
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722204.0
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2017-11-27 00:00:00 UTC
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Deere & Company (DE) Q4 2017 Earnings Conference Call Transcript
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DE
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https://www.nasdaq.com/articles/deere-company-de-q4-2017-earnings-conference-call-transcript-2017-11-27
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nan
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nan
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Deere & Company (NYSE: DE)
Q4 2017 Earnings Conference Call
Nov. 22, 2017 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome. Good morning and welcome to Deere & Company Fourth Quarter Earnings Conference Call. Your lines have been placed on listen-only until the question and answer session of today's conference. I would now like to turn the call over to Mr. Tony Huegel director of investor relations. Thank you. You may begin.
Tony Huegel -- Director, Investor Relations
Hello. Also on call today are Raj Kalathur, our Chief Financial Officer; and Josh Jepsen, Manager, Investor Communications. Today we'll take a closer look at Deere's fourth quarter earnings, our markets and our initial 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. Participants in 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 form 8-K and periodic reports filed with the Securities and Exchange Commission. This call also may include financial measures that are not in conformance with accounting principles generally accepted in the United States of America or GAAP.
Additional information concerning these measures including reconciliations to comparable GAAP measures is included in the release and posted on our website at www.johndeere.com/earnings under Quarterly Earnings and Events. Josh?
Josh Jepsen -- Manager, Investor Communications
Today, John Deere announced its fourth quarter financial results and the end to another successful year. In fact, sales and earnings for 2017 were the fifth highest in company history. Our performance was helped by improving markets for farm and construction equipment and also by our ongoing success establishing a broad-based product portfolio in a flexible cost structure. As a result, Deere has remained well-positioned not only to service present customers but also to make investments needed to drive growth and attract even more customers in the future.
Now, let's take a closer look at the fourth quarter in detail beginning on Slide four. Net sales and revenues were up 23% to just over $8 billion. Net income attributable to Deere & Company was $510 million. EPS was $1.57 in the quarter.
On Slide five, total worldwide equipment operations net sales were up 26% to about $7.1 billion. Price realization in the quarter was positive by 1 point. Currency translation was positive by 2 points. Turning to a review of our individual businesses.
Let's start with Ag and Turf on Slide six. Net sales were up 22% in the quarter-over-quarter comparison. All regions of the world were higher in the quarter. The increase was led by the U.S. and the EU 28. Operating profit was $584 million, up 57% versus the fourth quarter of 2016. The increase in operating profit was primarily driven by higher shipment volumes and favorable sales mix, partially offset by higher production costs and higher selling, administrative and general expenses.
Operating margins were 10.7% in the quarter. Incremental margins were about 47% for the full year. Excluding the impact of items such as the SiteOne gain and voluntary separation program expenses, the incremental margins were about 33%. Before we review the industry sales outlook, let's look at some fundamentals affecting the ag business. On Slide seven, despite increasing global demand, global grain and oilseed stocks-to-use ratios are forecast to remain at elevated but generally unchanged levels in 2017, '18 as an abundant crop are mostly offset by strong demand around the world.
Chinese grain and oilseed stocks remain high heading into 2018 after more than 10 years of supply, which includes domestic production plus imports outpacing demand. Chinese grain still represent almost half of the world's stocks and considering that the stocks are unlikely to be exported, the market remains sensitive to production setbacks or major geopolitical disruptions. World cotton stocks-to-use ratio has now fallen for second consecutive season and to the lowest level in five seasons, reflecting stronger global demand.Slide 8 outlines U.S. farm cash receipts.
2017 cash receipts are estimated to be $377 billion, about 3% higher than 2016's level. Given the large crop harvests in 2017 and, consequently the lower commodity prices we're seeing today, we expect 2018 total cash receipts to be approximately $368 billion. That's down about 2% from 2017 due to lower livestock and crop cash receipts.Our economic outlook for the EU 28 is on Slide nine. GDP growth in the region is improving though risks remain.
Arable farm margins are below the long-term average while the dairy market is recovering with prices holding at above average levels and forecast for margins exceeding the 5-year average. The sentiment remains positive for beef import producers though downward pressure on pork prices is possible. Shifting to Brazil on Slide 10. The chart on the left displays the crop value of agricultural production, a good proxy for the health of agribusiness in Brazil.
Ag production is expected to decrease about 4% in 2018 in U.S. dollar terms due mainly to record production in 2017 and the reversion to trend yields in 2018. In local currency, the value of production is forecast to be down about 2%. Although forecast to be lower in 2018, ag margins in Brazil are coming off a record year and continued acreage expansion is expected.
On the right side of the slide, you see the eligible rates for ag-related government-sponsored finance programs. Rates for Moderfrota remain at 7.5% for small and midsized farmers and 10.5% for large farmers. This demonstrates the government's ongoing commitment to agriculture. Our 2018 ag and turf industry outlook are summarized on Slide 11.
Industry sales in the U.S. and Canada are forecast to be up 5% to 10% for the year. Despite current commodity prices, the industry is experiencing stronger replacement demand for large equipment while demand for small equipment remains solid. Deere is experiencing strong order activity in both our early order programs for seasonal products and our order book for large tractors, which are supportive of the outlook.
The EU 28 industry outlook is forecast to be up about 5% in 2018, a result of margin recovery in dairy and livestock, as well as improved harvest outlooks in key markets such as France and the U.K. In South America, industry sales of tractors and combines, are projected to be flat to up 5% in 2018. This is driven mainly by demand in Argentina, which continues to benefit from favorable policy effects, strong fundamentals, and pent-up demand. Shifting to Asia.
Sales are expected to be relatively unchanged from 2017. Turning to another product category. Industry retail sales of turf and utility equipment in the U.S. and Canada are projected to be roughly flat in 2018, so Deere expects to outpace the industry Putting this all together on Slide 12.
Fiscal year 2018 Deere sales of worldwide ag and turf equipment are forecast to be up about 9%, including about 2 points of positive currency translation. The sales increase is led by the U.S. market and, to a lesser extent, by the EU 28. The increase in the U.S.
is due in part to significant growth in the sale of small ag and turf products which are expected to benefit from new product introductions in the year. The Ag and Turf division operating margin forecast is about 12.5% in 2018. Excluding the impact of special items, the implied incremental margin in 2018 are nearly 35%. Furthermore, excluding the impact of currency translation and negative mix, forecasted incremental margins are above 40%.
Now, let's focus on Construction & Forestry on Slide 13. Net sales were up 37% in the quarter due to higher shipment volumes, price realization and the favorable effects of currency translation. Operating profit was $85 million due to higher shipment volumes and price realization, partially offset by an impairment charge for international operations. Operating margin was 5% in the quarter, but 7.5% excluding the impairment charge.
Moving to Slide 14. The economic fundamentals affecting the construction and forestry industries in North America continue to be supportive of increased industry demand. GDP growth is forecast to be strong, continuing the positive trend experienced during the past six months in the U.S. and Canada.
Housing demand is growing but constrained by supply. As a result, single-family home inventories continue at 35-year lows. Single-family housing starts are strong across all regions in the U.S. Single-family homes require increased earthmoving and lumber content, which are important drivers of earthmoving and forestry equipment.
Construction investment is forecast to grow in 2018 led by oil and gas and residential activity. Oil prices are forecast to be above $50, which is important since oil and gas-related activity tends to slow when oil prices are below $50 and tends to pick up when above that level. In addition, machinery rental utilization rates continue improving and rental pricing is gaining traction. Finally, new and used inventory levels have come down and auction activity has declined substantially year-over-year.
Deere's outlook also reflects a strong order book based on industry activity and positive trends in retail sales. Moving to the C&F outlook on Slide 15. Deere's Construction & Forestry sales are now forecast to be up about 69% in 2018, mainly driven by the anticipated acquisition of Wirtgen as well as by strong demand in the U.S. and Canada.
The forecast includes about $3.1 billion in sales from Wirtgen and assumes the acquisition will close in December. Regarding forestry, the forecast for global forestry market is flat to up 5%, a result of improvement in the U.S. and Canada. C&F's full-year operating margin is projected to be about 8%, which includes estimated purchase accounting and transaction costs for Wirtgen.
Excluding Wirtgen, the division's annual operating margin is forecast to be about 10.5%. Let's move now to our Financial Services operations. Slide 16 shows the provision for credit losses as a percent of the average owned portfolio. The provision at the end of 2017 was 24 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 25 basis points. This would put losses at a 10-year average of 25 basis points and slightly below the 15-year average of 27. Moving to Slide 17. Worldwide Financial Services net income attributable to Deere & Company was $128 million in the fourth quarter versus $110 million last year.
For the full year, Financial Services net income attributable to Deere & Company was $477 million versus $468 million in 2016. The higher results for both periods were primarily due to lower losses on lease residual values. Full year results were partially offset by less favorable financing spreads and higher selling, administrative and general expenses. Financial Services is expected to earn about $515 million in 2018.
The outlook reflects a higher average portfolio, partially offset by higher selling, administrative and general expenses. Next, we'll turn to receivables and inventories as shown on Slide 18. For the company as a whole, receivables and inventories ended the year up $1.477 billion. Ag and Turf accounted for about 2/3 of the increase with the majority driven by growth in overseas receivables.
2018 receivables and inventories are expected to rise primarily due to the inclusion of Wirtgen while the rest of the business will likely see movement in line with sales. More specific guidance will be provided with our first quarter 2018 earnings release. Moving to Slide 19. Cost of sales as a percent of net sales for 2017 was 77%.
Our 2018 guidance for cost of sales as a percent of net sales is about 75%. When modeling 2018, keep these impacts in mind: Positive price realization of about 1 point. On the unfavorable side, we expect an unfavorable product mix, higher overhead spending, and increased incentive compensation. Now let's look at some additional details with respect to R&D on Slide 20.
R&D was up 3% in the fourth quarter, but down 2% for the full year. Currency translation had an unfavorable impact of 1% in the quarter and no impact for the full year. Our 2018 forecast caused our R&D to be up about 18%, half of which is related to the acquisitions of Wirtgen and Blue River Technology. Moving now to Slide 21.
SA&G expense for the equipment operations was up 15% in the fourth quarter with acquisition-related activities, commissions paid to dealers, incentive compensation and currency translation accounting for most of the change. SA&G expense for the full year was up 12% due to the same factors noted for the quarter in addition to voluntary separation program expenses. Our 2018 forecast calls for SA&G expense to be up about 26%. 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 27% in the quarter and 30% for the full year. For 2018, the effective tax rate is forecast to be in the range of 31% to 33%. The rate is a result of a more favorable mix of income, improved profitability outside the U.S.
and structural changes within the business. Slide 23 shows our equipment operations' history of strong cash flow. Cash flow from the equipment operations was $2.4 billion in 2017. The change versus our previous forecast of about $2.9 billion was due largely to OPEB contributions made earlier than previously anticipated for tax planning purposes.
For 2018, cash flow from equipment operations is forecast to be about $3.8 billion, which includes positive cash flow from Wirtgen. The 2018 financial outlook is on Slide 24. Net sales for the quarter are forecast to be up about 38% compared with 2018. This includes about 2 points of price realization and about 3 points of favorable currency translation.
Wirtgen is expected to contribute about 6 points to the increase in the quarter. The full-year forecast calls for net sales to be up about 22%. Price realization and favorable currency translation are expected to be about 1 point and 2 points, respectively. Wirtgen sales are forecast to contribute about 12 points for the year.
Finally, our full year 2018 net income forecast is about $2.6 billion. Comparing 2017 and 2018, Slide 25 shows a high-level reconciliation of operating profit for the equipment operations adjusted for special items. Operating profit was $2.82 billion for the equipment operations in 2017. Included were these special items which require consideration: $375 million pre-tax gain from sale of remaining interest in SiteOne Landscape Supply, which has been discussed throughout the year; M&A costs of $37 million; impairment charge of $40 million mentioned earlier; and voluntary separation program expenses of $92 million.
Adjusted for these factors, 2017 operating profit would have been $2.615 billion. Looking at 2018. Based on the guidance for net sales changes and operating margins by segment, projected operating profit for the equipment operations is forecast to be about $3.525 billion. Included in the operating profit forecast are the following items of note.
Wirtgen's operating profit, using very preliminary estimates for purchase accounting and deal costs, is expected to be about $75 million, resulting in operating margin between 2% and 3%. On a stand-alone basis, Wirtgen is forecast to deliver operating margin in the range of 15% to 16%. The operating margin expectation for the business going forward is in the 11% to 12% range, reflecting estimated ongoing purchase accounting-related expenses. The 2018 forecast does not include any benefit from synergies associated with the Wirtgen acquisition, which, as noted at the time of announcement, are expected to total EUR 100 million by 2022.
Additionally, the acquisition of Blue River Technology results in higher year-over-year spending of roughly $60 million as we invest in machine learning and integrate the technology into our portfolio. Taking these items into account, adjusted operating profit for 2018 is expected to be about $3.51 billion. On an adjusted basis, the comparison shows an improvement of roughly $900 million in operating profit for 2018 versus 2017, representing an incremental margin of about 33%. As a result, Deere is demonstrating improved operational performance due to disciplined cost execution, cost management and continued investment in innovative technology and solutions.
This brings benefits to stakeholders in 2018 and beyond. I'll now turn the call over to Raj Kalathur for closing comments.
Raj Kalathur -- Chief Financial Officer
Before we ask or take questions, I want to share a few thoughts about our performance in 2017 and what we see in store for the year ahead. First, it's noteworthy that Deere has been able to perform so well with the North American market for large farm equipment running at such a low level. Even in 2018, with the sales on upswing, we see a U.S. market for things like large tractors, for example, remaining over 25% below what we consider to be a mid-cycle level.
So there's lots of upside potential there when the market recovers. Our ability to maintain strong performance under these conditions speaks to our success establishing a broad product lineup, including small tractors and turf equipment, as well as a more profitable international presence. The second point concerns structural costs. Our performance in 2017 and our forecast for the year ahead are like clear evidence of the progress we have made reducing structural costs.
This is helping us generate strong incremental margins and impressive cash flow, which we are using to make investments in technology and growth. We remain committed to further bringing down structural costs and it will remain a priority for Deere in the future. Finally, a thought about Wirtgen. Needless to say, we remain excited about the many opportunities for growth that Wirtgen will bring to John Deere, thanks in large part to the world's growing need for roads and infrastructure.
The Wirtgen acquisition also underscores the financial strength of our company. Consider that, in the coming weeks, Deere will conclude a $5 billion-plus acquisition, by far the largest in our history, fund the acquisition with a relatively low amount of debt and still maintain a very strong balance sheet. Even after the deal is completed, we believe our net debt-to-capital ratio for the equipment ops will be in the mid-20% range and that it will improve throughout 2018 given the strong cash flow we are expecting. All in all, then, we have great confidence in Deere's present course.
Backed by solid performance in 2017 and our strong outlook for the year ahead, we firmly believe the company is in a prime position to capitalize on the world's increasing need for advanced equipment and is set to deliver stronger and more consistent results in the future.
Tony Huegel -- Director, Investor Relations
Thank you, Raj. 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 and our hope to allow more of you to participate in the call, please limit yourself to one question. If you have additional questions, we ask that you rejoin the queue.
Katie?
Questions & Answers:
Operator
Thank you. At this time we would like to begin the question and answer portion of today's conference. If you would like to ask a question from the phone lines please press * then 1, unmute your phone, and record your name when prompted. If you need to withdraw your question, please press * then 2.
Once again, to ask a question from the phone lines, please press * then 1 and record your name when prompted. Our first question comes from Andrew Casey from Wells Fargo Securities. Your line is now open.
Andrew Casey -- Wells Fargo -- Analyst
Thanks. Good morning.
Tony Huegel -- Director, Investor Relations
Hey, Andy
Andrew Casey -- Wells Fargo -- Analyst
Just wanted to ask a couple of questions about the Ag and Turf outlook. Within the 9% revenue growth, specifically, the 7% core growth expectation, are you including any expectation for potential dealer restock actions?
Tony Huegel -- Director, Investor Relations
If you think about -- and I'm guessing that question is specifically targeted toward -- of large ag in the U.S. and Canada.
Andrew Casey -- Wells Fargo -- Analyst
Yes.
Tony Huegel -- Director, Investor Relations
And the answer there would be, at this point, we would be forecasting pretty much in line type of shipment in terms of retail. So we would not be anticipating, at this point of the year, increasing any receivables and/or field inventory on large ag in the U.S. and Canada. So basically, again, think about, at this point, building to retail demand.
Andrew Casey -- Wells Fargo -- Analyst
Okay, Tony. And then...
Tony Huegel -- Director, Investor Relations
I'm sorry. I hate to say we're going to have to limit to one question. There's a lot of people in the queue and we want to be fair to others.
Andrew Casey -- Wells Fargo -- Analyst
Okay. Thank you.
Operator
Our next caller our next question comes from Jerry Revich from Goldman Sachs and Company. Your line is now open.
Jerry Revich -- Goldman Sachs -- Analyst
Hi, good morning and Happy Thanksgiving, everyone. Tony, I'm wondering if you could just talk about where dealer used equipment inventories stand today? How much progress have you made over the past quarter? And just frame for us there ratio of used versus new equipment sales that the dealers are seeing in '17 compared to a long-term average if you could?
Tony Huegel -- Director, Investor Relations
Sure. Yes. I think maybe the best way to think about used equipment is -- we started to say really through 2017 and we continue to say our used equipment levels, especially as it relates to large ag equipment, has shifted really to being more supportive of the ability for our dealers to sell new equipment. So we are making continued progress on that large ag inventory.
And I think if you put it in context, I mean, we have -- if you look on products like combines and 4-wheel-drive tractors, I mean, those used levels are, today, at levels that we really haven't seen since kind of the 2010 time frame. The one challenge that we would continue to have that we're still working on would be on large [inaudible] tractors. And, again, I want to emphasize the position is much better today than it would have been 12 to 18 months ago, but it is an area of continued focus for us as we go into 2018. So -- all right?
Jerry Revich -- Goldman Sachs -- Analyst
And Tony sorry. Can you frame the used versus new sales? Or can you just give us some context on that?
Tony Huegel -- Director, Investor Relations
Again, I think it would still be in line. Again, as we've gone through the year, our dealers, obviously, as they focus on bringing down those used, you'd see a little higher than normal level of used to bring those down. I think on tractors, we would anticipate a continuation of that going forward. But clearly, we're seeing some strength in the new sales as well partly and due to the fact that dealers have been very successful in getting those used inventories more rightsized.
Jerry Revich -- Goldman Sachs -- Analyst
Thank you.
Tony Huegel -- Director, Investor Relations
Thank you.
Operator
Our next question comes from Jamie Cook from Credit Suisse Securities. Your line is now open.
Jamie Cook -- Credit Suisse -- Analyst
Hi, good morning. Tony, just -- sorry to focus so much on the large ag equipment market, but you talked a little bit about your early order program. Can you just sort of provide more color across product line how much visibility you have and how much the order book is up both for ag in the U.S. as well as construction on an organic basis?
Tony Huegel -- Director, Investor Relations
You bet. Yes, and again, as you talked about even last quarter on the kind of crop care early order program, the sprayers and planters, up double digits, they did end. So the early order programs have ended up double digits on those products, again, keep in mind off of a very low base. Our combine early order program, it will end in January but we did finish kind of the second phase of that.
It also, at this point, has seen some double-digit increase. Now, I want to be really careful with that combined number because recognizing this year our anticipation is we saw a fairly aggressive orders early. It would anticipate those trailing off a bit, still higher year-over-year but not necessarily that double-digit. Remember, we were at high single-digit increase in 2017.
So seeing another year of strength from combines in 2018 is very encouraging. When you think about row-crop tractors, those Waterloo tractors, again remember those are not on an early order program. Think about that more as a kind of traditional sequential order. And we think about availability really pretty much across the board on those Waterloo tractors we would see availability further out than where we would've been a year ago.
Some examples if you look at AR -- 8R tractors, our availability is out into kind of the March timeframe versus January to early February a year ago is just one example, and that's pretty consistent. And again, that's based on our current production schedules that we are seeing that type of order volume. Maybe in summary, and perhaps where I should start it is when you think about our order books relative to the forecast, our order coverage today on our original budget outlook is much stronger really across the board than what we would've seen a year ago. As we shift to C&F, I would say it is much, much stronger today versus what we would've seen a year ago at this point.
We continue to see very, very strong orders in that -- for that division. And again, put that in context, we would continue to say, basically we're a quarter out, generally, on availability. Obviously, as retail need to come in, we shift that around a little bit to accommodate needs but most of first quarter is spoken for today on orders. So very excited about where we're at from an order perspective going into 2018.
Jamie Cook -- Credit Suisse -- Analyst
Okay, that's encouraging. Thank you'll get back in queue.
Tony Huegel -- Director, Investor Relations
Thank you.
Operator
Our next caller comes question comes from Rob Wertheimer with Melius Research LLC. Your line is now open.
Rob Wertheimer -- Melius Research -- Analyst
Hi, it's Rob Wertheimer from Melius. How are you guys doing?
Tony Huegel -- Director, Investor Relations
Good. How are you, Rob?
Rob Wertheimer -- Melius Research -- Analyst
Good. Thank you. So the question is a little bit like what's happened in the last month or three months, and just how it feels. And stop me if I get something wrong but it seems as though your receivables and then inventories went up which I assume is a bullish sign rather than kind of an issue or whatever.
In October obviously, AM sales were really, really strong. So is there any some sort of an inflection? I mean what do you attribute those two factors to? And maybe just comment on what it feels like.
Tony Huegel -- Director, Investor Relations
Sure. I would say, certainly, what we're seeing in our outlook is really in what we saw in those early order programs in the track order book that I just talked about. I would say more as a confirmation of what we were seeing really kind of for mid-2017 forward. We talked about that replacement demand is appearing to come back.
And so from our perspective, not a significant change. Again, it's encouraging for sure because until you actually see those orders, the sentiment is just that. It's sentiment. But we're seeing that translate into orders, which is encouraging.
I wouldn't read -- as it relates to North American ag, I wouldn't read a lot into that receivable and inventory increase because most of that is related to outside the U.S., and Canada, increases. And specifically, on the receivables versus what we had previously forecasted, it's things like -- we talked in the last year, where we did have a special deal with Turkmenistan, a large transaction, and the timing of that can sometimes create differences in terms of whether it's settled or not, and that really is what happened at the end of the year. That was a big part of that increase versus what we had forecast. So again, that's really just supportive of the strength we've seen outside of the U.S.
and Canada through 2017, not really any significant build at all and really no build in the field inventories in the U.S. and Canada.
Rob Wertheimer -- Melius Research -- Analyst
Okay. Thanks, Tony.
Tony Huegel -- Director, Investor Relations
Thank you. All right, next caller?
Operator
Our next question comes from Ann Duignan from JP Morgan Securities. Your line is now open.
Ann Duignan -- JPMorgan Chase -- Analyst
Hi, good morning.
Tony Huegel -- Director, Investor Relations
Hi, Ann.
Ann Duignan -- JPMorgan Chase -- Analyst
I guess since J.B. is not there, I'll ask a question of Raj. With Construction & Forestry, you used to say that segment has earned its right to grow. But if we look at shareholder value-add over the last two years, it's actually been negative.
And if we look at the last four years, it's basically been flat, down $1 million actually. So can you talk about the fact we also had impairments this quarter with impairments last year at the same quarter? So Raj, can you just talk about the risks of making a big -- large acquisition in that segment and what we should -- just how we should think about that?
Raj Kalathur -- Chief Financial Officer
Ann, thanks for that question. Now first, I want to remind you that if you took underlying numbers that we talked about for this year in terms of margins, Josh said, it will be 10.5% margins for C&F this year if we don't include the Wirtgen portion. Now, the other part that you need to remember is we've had these growth investments in Brazil and in China. That actually pulled our overall margins down.
When we look at the margins for the core business and we know it is free pretty healthy, OK? So that's one of the requirements we have for the [inaudible] and that's coming along well. Now supporting that, as you know, we are getting to be larger over time in the production class equipment, and that's going to be positive for us longer term, and even as the businesses in South America, like Brazil, starts coming up and our factory capacity is utilized better, the margins will improve there too. So we watch it very carefully and we know the underlying health of the Construction & Forestry business is pretty good. We want to make it better, of course.
And then even with the Wirtgen transaction, if you think about the areas that Wirtgen participates in, and the type of premium they get, now we anticipate, and as we mentioned on the call, 11% to 12% type margins on an ongoing basis even after some of the purchase accounting items. So if you look at cash for that business, it's almost 15% to 16% cash EBIT type margins. So overall that improves further our overall margins for C&F. So yes, it's not -- doesn't look good on paper when you look at it as reported but it's actually -- the underlying health of that business is very good.
Ann Duignan -- JPMorgan Chase -- Analyst
And if you wouldn't mind just clarifying, Raj, where exactly were the impairment charges in both years.
Raj Kalathur -- Chief Financial Officer
Okay, last year, the impairment charges were primarily for a couple of our units in Brazil and China. And this year, impairment charges are for another foreign entity that's not Brazil or China, OK?
Tony Huegel -- Director, Investor Relations
Thank you. Next caller, please.
Operator
Our next question comes from Nicole DeBlase from Deutsche Bank Securities. Your line is now open.
Tony Huegel -- Director, Investor Relations
Hi, Nicole.
Nicole DeBlase -- Deutsche Bank -- Analyst
Hi. So I guess around the ag and turf incremental margins, I think you guys said that you're implying up to 35% next year and 40% x items. So given that material costs are still higher and you talked about a little bit of incentive compensation pressure if you could talk about the key drivers of those pretty robust incremental margins in your guidance.
Tony Huegel -- Director, Investor Relations
Sure, yes. And again, we do not have significant material increases currently in the forecast for next year. So we certainly had in 2017 but I would say '18 at least in the initial guide is relatively flat and that again, we talked a lot about the cost reduction programs helping to offset some of that higher cost. As you think about, obviously, higher volumes help, price realization will help.
To be fair, we would be forecasting some lower warranty expense. Those would all be certainly helping from an operating profit perspective. On the flip side, we also have talked about, and it's clearly in the guidance, higher R&D, and much of that increased R&D is related to our agricultural side of the business and specifically large ag products as we start looking at new generation of products there as well. There is some unfavorable mix that's -- a lot of that is due to parts as well.
Remember it's complete goods increase, parts as a percent of the total tends to come down a bit and then again, some higher SA&G which as you mentioned would include some of that incentive comp but also include things like as South America business, in particular, improves some higher dealer commissions that flow through into those -- into that SA&G. So those are really kind of the key drivers there as we look going forward. But again, I think as Raj mentioned, and Josh as well, I think it's really just evidence of the strength that the structural cost reductions are bringing an improvement that it's making to the overall business to see those types of incrementals.
Nicole DeBlase -- Deutsche Bank -- Analyst
Thanks, Tony.
Tony Huegel -- Director, Investor Relations
Thank you. Next caller?
Operator
Our next question comes from Steven Fisher from UBS Securities. Your line is now open.
Steven Fisher -- UBS -- Analyst
Thanks, good morning. Raj, thanks for the color on the 25% below mid-cycle. I wonder if you could sort of frame the trough and peak levels you see there in ag that kind of support that number because I think that would imply something like $27 billion to $28 billion of a mid-cycle ag revenue number which compares to about a $29-plus billion peak. So just kind of wondering how you're thinking about framing what trough and peak would be with the 25% below on a 2018 number.
Tony Huegel -- Director, Investor Relations
This is Tony. But keep in mind that was specific to large ag in the U.S. and Canada and not the total ag business. So if you look at our current forecast for 2018, we'd be closer to 90% of mid-cycle for the total division.
But again, I think the point is these types of returns are being recognized when our largest most profitable portion of that business is down pretty significantly and continues to be down pretty significantly. We've talked all along that versus peak of 2013, large ag in the U.S. and Canada was down 60% or more and you're starting to see us come off of those trough levels but still at relatively low levels. So the good news there is as the recovery continues for those large ag products, there is a lot of additional opportunity for profitability and certainly incremental margins as well.
Steven Fisher -- UBS -- Analyst
Thank you.
Tony Huegel -- Director, Investor Relations
Next caller?
Operator
Our next question comes from Joel Tiss from BMO Capital Markets. Your line is now open.
Joel Tiss -- BMO Capital Markets -- Analyst
Hey, guys. One clarification and then a question. On the clarification for Raj, on the consolidated balance sheet, the inventories are up $692 million but on the cash flow statement, it's closer to $1.2 billion, a negative working capital. And then when you deconsolidate the balance sheet, the inventories are only up $564 million.
So I just wondered if you could get to the bottom of that. And then the question is, is the cost of sales dropped from 77% to 75% is that a structural change just because you're including Wirtgen? Or is there something else behind that?
Tony Huegel -- Director, Investor Relations
Yes. Actually, the Wirtgen numbers don't change that cost of sales percentage significantly, I think as you look at cost of sales year-over-year, you're really seeing, again, benefit of some increased volumes as well as price realization. But again, it goes to, as I mentioned previously, it's the benefit that we're seeing from some of those structural cost reductions that are starting to come into play in that cost of sales as well. I'm not going to say anything more.
We will follow up -- maybe we'll follow up later on your question on cash -- take your time.
Joel Tiss -- BMO Capital Markets -- Analyst
Okay. Thank you.
Tony Huegel -- Director, Investor Relations
Next caller?
Operator
Our next question comes from Joe O'Dea from Vertical Research Partners. Your line is now open.
Joe O'Dea -- Vertical Research Partners -- Analyst
Hi, good morning. Just back to the comments on -- continue to pace some of the structural savings you talked about in that initial $500 million that you targeted. Could you give us a sense of how much of that is remaining and how much of that you expect to achieve in 2018?
Tony Huegel -- Director, Investor Relations
I think really what we would say there is as business is continuing to grow, the short answer is we're moving -- we're basically have chosen not to give a specific number. I think as we talked about even last quarter, you can see it in the incremental margins. We're certainly continued to be committed there but the challenge is, we have -- as we talked about previously, you have the structural cost programs continuing to be ongoing, but then you have other levers being released or making different decisions around investments. R&D is probably the best example of that.
That was an area that we were focused on when we were back in 2016 type of levels. It's reducing R&D. Now as our businesses are starting to improve, we're shifting the focus there and at these levels feel the need that we need to step up some of the investment in those products again. And so with all of those moving pieces, I think the way to think about the structural cost reduction is, clearly, in our view, it's being seen in the 2018 incrementals, at least in the underlying business.
And certainly, you should expect to continue to see the benefit of that as we go forward. Again, we'll make decisions as we go forward, how much of those structural cost reductions in the existing business are used to improve margins and how much of that is used to invest for future growth, and that's again, consistent with what we said pretty much all along with the structural cost reduction.
Raj Kalathur -- Chief Financial Officer
So, Joe, I'll add that, qualitatively, I'd say we have been very successful in our journey in respect to structural cost reduction. Now as Tony mentioned, we can't steer the levers we've added because of volume coming up. The material inflation that we've been compensated in '17, the additional R&D that we're investing in and growth investments we're making and still delivered a very strong incremental margins in '17 and '18. You'll see the significant benefit the cost reduction exercise has delivered.
Now we do -- to your other part of the question, we do plan to further drive this effort in 2018 and beyond, so clearly not done. We have more to get. We've been very successful to date and we have more to get.
Joe O'Dea -- Vertical Research Partners -- Analyst
I appreciate it. Thank you.
Tony Huegel -- Director, Investor Relations
Thank you. Next caller?
Operator
Our next caller comes from Timothy Thein with Citigroup Global Markets. Your line is now open.
Timothy Thein -- Citigroup -- Analyst
Thank you, good morning. Tony, first, just maybe a clarification on your comments early on the combine early order program in North America being up double digits. My impression of that is that typically the first phase accounts for a much higher percentage of orders just because the incentives are higher and then they kind of ratchet down as you go through that. So I guess my question is was the discount structure changed this year? Just I just want to make sure I appreciate your comment because again I would think that it would always be higher in that first phase.
Tony Huegel -- Director, Investor Relations
That is certainly true, and would still be true this year. I think the difference is as we go deeper into the program, the anticipation is that last year those orders remained actually pretty strong through that -- through the entire program. We would expect it to come off a little bit versus what we saw last year. Again, I want to be clear on that early order program.
Our anticipation is that the combines orders will be higher year-over-year. I just want to be careful with the double digits.
Timothy Thein -- Citigroup -- Analyst
Okay. And just dovetailing on that, Tony, just on the revenue progression for the year in ag and turf, as we move beyond 1Q, the math would suggest that we're going to be moving into a down organic year-over-year change in the back half of the year. What's -- is there something -- that you'd highlight there contributing to that?
Tony Huegel -- Director, Investor Relations
Well, again, when you think about first quarter, remember again, it's the strength of the seasonal -- the spring seasonal equipment, the sprayers and -- sprayers and planters in particular. You're going to see some impact of that in our first quarter. And again, I want to be really careful. As I've talked about last year, when you think about year-over-year changes in the quarter, remember, we're still at pretty low levels especially large ag in the U.S.
and Canada. So as we contemplate the best manufacturing schedules that are going to be for us as we go into the next year, you may see some quarters that are stronger or weaker than you would typically see, at least in the year-over-year comparison. You saw that last year where we had a very, very strong second quarter. Third and fourth weren't quite as strong versus what you saw in the second quarter but for the year, very strong results, and again, that's what we're trying to set up from a manufacturing perspective, what's the most cost-effective schedule that's going to drive the most profitability and the most efficiency for the year.
So you may see some quarterly shifts here and there, but again, it's just us trying to accommodate the increased schedule as efficiently as we can.
Timothy Thein -- Citigroup -- Analyst
Great. Thanks, Tony.
Next caller?
Operator
Our next question comes from Steven Volkmann from Jefferies. Your line is now open.
Steven Volkmann -- Jefferies -- Analyst
Hi, good morning, guys. I actually wanted to ask about smaller ag because it sounded like in the prepared commentary that the mix was a little bit more to the small side in terms of the new product and so forth. And can you just flesh that out a little bit? Or do you think you're gaining share there? Do I have it right that that will be kind of a higher mix in '18? Yes, any color there would be great.
Tony Huegel -- Director, Investor Relations
Today, in our forecast, you're exactly right. As you think about mix, it is actually -- while large ag is certainly strengthening in the U.S. and Canada, the mix is slightly negative for us in ag for the current forecast. Some of that is due as you think about small equipment, the strength of the industry continues to be very high, so certainly not seeing that come off any.
And coupled with that, we do have some new products that will be coming into the market, and of course, that often results in some higher shipments for us versus the industry. So if you look at our shipments versus industry outlook, yes, we would outperform but a lot of that is due to some of that new equipment and filling channel with that new equipment that tends to occur. And so our sales mix will be a bit different than what we would say the mix is for the industry retail sales in 2018. So you're exactly right but I think underlying and I think about strength, continued strength in small ag and some additional benefit for us with new product that's driving that.
Steven Volkmann -- Jefferies -- Analyst
Great. Thank you so much.
Tony Huegel -- Director, Investor Relations
Thank you. Next caller?
Operator
Our next caller comes from David Raso with Evercore ISI. Your line is now open.
David Raso -- Evercore ISI -- Analyst
Hi. Thank you. My question relates to the Wirtgen business, 2018 to 2019. Tony, you made a statement earlier about -- you gave a stand-alone margin, which is helpful, but I think the real number was kind of run rate company with deal amortizations about 11% to 12% margin.
Is that correct?
Tony Huegel -- Director, Investor Relations
That's correct. Yes. So as you think about 2019, that would be the one -- at least again, keep in mind these are very preliminary assumptions. We would expect next quarter to have a lot more specifics that we can share around that, but that 11% to 12% is what you should think about as you go into 2019.
The caution I would give there and maybe the upside to that number is it does not include any assumptions for synergies. So to the extent, we start to see some synergy benefit in 2019, that would be additive to those margins.
Raj Kalathur -- Chief Financial Officer
[Inaudible].
Tony Huegel -- Director, Investor Relations
Correct.
David Raso -- Evercore ISI -- Analyst
I mean that's the genesis. It basically appears if you're doing a 2.5% margin this year and the run rate with deal amortization is 11.5%, it implies there's almost $280 million in this year's guidance that's onetime in nature, inventory step-up, other transactional fees. And then in '19, you get a full year, where you add, say, a month to two months of Wirtgen, that may be a 12%, 12.5% we can swag the synergies as we like, but I mean it's just -- it seems to be implying there's like $0.70 delta from 2018 Wirtgen to 2019 Wirtgen. I just want to make sure we're on the same page.
Tony Huegel -- Director, Investor Relations
No, I would not take exception to any -- I mean, again, you can make the swag on what you think synergies may do but you are understanding that guide correctly [inaudible].
Raj Kalathur -- Chief Financial Officer
David, I think overall, again, I want to reinforce, it's very preliminary, OK? Now what's going well there is the underlying strength of the industry on a worldwide basis for road construction infrastructure, that's strong tailwinds. Plus the market position this entity has, those things work really well. And on a cash basis, it's even better than the 11% to 12% that we talked about.
David Raso -- Evercore ISI -- Analyst
I appreciate that. All right. Thank you. Happy Thanksgiving.
Tony Huegel -- Director, Investor Relations
Thanks, you too. Next caller?
Operator
Our next question comes from Mig Dobre with Robert W. Baird and Company. Your line is now open.
Mig Dobre -- Robert W. Baird -- Analyst
Yeah, good morning. Thanks for putting me in. Tony, maybe you can comment a little bit more about replacement demand? Because obviously cash receipts in your forecast are down sort of commodity prices. And I'm wondering exactly what the trigger is here.
Is it simply related to fleet age? Or is this related to productivity, product introductions? Any help would be appreciated.
Tony Huegel -- Director, Investor Relations
Yes, I think again, and this is similar to what we really have talked about through a lion's share of 2017, as we move forward, certainly, the strength that we're seeing in large ag is not coming from improved fundamentals. We're seeing pretty similar type of receipts and income levels year-over-year, slightly higher in '17 looking at least an initial forecast in '18, slightly lower. That's kind of flattish in both years. But what we are recognizing is that these levels, most farmers are making some level of income, OK? And I think that's one factor that you have to keep in mind.
Certainly, not what they were making in 2012, 2013, but there is some profitability there. You also have the fact that we've gone a number of years at very, very low levels. So the equipment has begun to age a bit, and so that's creating some demand. And it sounds like everything you just said.
We have continued to invest in our business and so we continue to bring efficient new product and new features into the market. That certainly contributes to the desire for customers to step back in. In some cases, it's ways that they can actually reduce some of their breakeven points. If they can get more efficient equipment that's using some of those inputs more efficiently to reduce the breakevens or improve their yield, those sorts of things, again, kind of speaks to the benefit of our precision technologies as well.
So I would say it's a combination of those things. It's obviously going to be different for each farmer in terms of what ultimately is driving them back into the market but that's what's going on with the customer side, and we have a dealer network who has done a lot of hard work to reduce their used inventory and put themselves in a position whereas farmers are willing and interested to step back in the market, they can accommodate those sales today where they would've been much more challenged 1.5 years, two years ago to do that. So again, kind of a wide range of factors that are driving that, but again, we think it's really just underlying replacement demand that we're seeing, and we believe that it's very sustainable as well.
Raj Kalathur -- Chief Financial Officer
The underlying customer economics, I want to reinforce, has been pretty good, OK, not great but pretty good for the last few years as well. Now a couple of things. When people focus on the commodity prices, the cost side of the farmer's equation, that's actually come down nicely, and the other thing that lowers their breakeven point is the yield, the yield has grown. So when the cost plus yield, the economics is actually pretty good for the farmers, not great, but reasonably good, and that's what is pulling this replacement demand and we expect this to continue.
And if the commodity prices come up, then the opportunity opens up even a lot more.
Mig Dobre -- Robert W. Baird -- Analyst
All right. Appreciate it.
Tony Huegel -- Director, Investor Relations
Yup. Next caller?
Operator
Our next question comes from Larry De Marina -- Maria with William Blair and Company. Your line is now open.
Larry De Maria -- William Blair -- Analyst
Hi, thanks, good morning. Just wanted to shift gears a little bit here. And if you could talk maybe a little further detail. Around Blue River.
We know we're [ efficient, ] how you monetize it and maybe some of the financials. I think it was about $300 million deal. And related to that, does the FDA model apply here? Or could we assume that maybe you're willing to take some bigger bets for technology away from SVA model going forward?
Tony Huegel -- Director, Investor Relations
I'm going to be really brief -- again just in the interest of time, to keep in mind as we talked about the Blue River, the interest we have in that company really was around the machine learning technology. That is and continues to be an investment in future technology and so it isn't expected to be a revenue driver certainly in the short term, but there are a wide range of areas where we think that machine learning technology really will take us into that next generation of intelligence. Blue River is the most advanced company in that regard and puts us clearly in the lead toward implementing that in product. But in the short term, again, that's an investment in future technology.
What you see in 2018 and our outlook, it is a cost up and we would expect certainly long term to see some very positive returns from that investment but it's more of a long-term play versus short term.
Raj Kalathur -- Chief Financial Officer
The investment -- returns are going to come in all other equipment where we use this technology.
Tony Huegel -- Director, Investor Relations
Exactly. Yup. Yup. Okay?
Larry De Maria -- William Blair -- Analyst
Oh, got it. Thank you.
Tony Huegel -- Director, Investor Relations
Yup. Yup. And this will take one last call.
Operator
Our final question comes from Seth Weber with RBC Capital Markets. Your line is now open.
Seth Weber -- RBC Capital Markets -- Analyst
Hey, good morning and thanks for squeezing me squeaking us in. Just want to go back to Raj's comment in his prepared remarks about increasing profitability in some markets outside North America. Is there any, you know, granularity around that? Is it a function of better distribution? Better mix? Is the competitive environment changing? Maybe talk about Europe and Latin America specifically. Thank you.
Raj Kalathur -- Chief Financial Officer
If I start with Latin America as an example, it's one that you've pointed. Now one, if we look at where the market is headed, it is going -- growing more in the large ag side, which helps us. We have a more broader base of products that we offer in Latin America and these are large ag type products, planters, even sugarcane harvesters and cotton pickers and sprayers and so on in addition to the combines and tractors. So all of those actually help us now.
The other factor you would think about is Argentina, that market opening up and there is pent-up demand in Argentina that helped us well. But in general, our ability to manufacture locally and successfully grow our share, especially in the large ag side, has helped grow a profitable period as well. That would be one example.
Seth Weber -- RBC Capital Markets -- Analyst
Okay. I mean can you just talk about the competitive environment, though, in Latin America as the business environment has softened a little bit here over the last few months?
Raj Kalathur -- Chief Financial Officer
And again, the competitive environment has always been there. So again, we focus on the areas where we can offer a differentiated product and command a differentiated margin, and that's what we're focused on, and the industry growth has actually helped us.
Tony Huegel -- Director, Investor Relations
Thank you, Seth. And with that, we will conclude our call. As always, we'll be around to take additional questions as we go through the day, and appreciate your time. Thank you.
Operator
That concludes today's conference. Thank you for participating. You may disconnect at this time.
Duration: 60 minutes
Call Participants:
Tony Huegel -- Director, Investor Relations
Josh Jepsen -- Manager, Investor Communications
Raj Kalathur -- Chief Financial Officer
Andrew Casey -- Wells Fargo -- Analyst
Jerry Revich -- Goldman Sachs -- Analyst
Jamie Cook -- Credit Suisse -- Analyst
Rob Wertheimer -- Melius Research -- Analyst
Ann Duignan -- JPMorgan Chase -- Analyst
Nicole DeBlase -- Deutsche Bank -- Analyst
Steven Fisher -- UBS -- Analyst
Joel Tiss -- BMO Capital Markets -- Analyst
Joe O'Dea -- Vertical Research Partners -- Analyst
Timothy Thein -- Citigroup -- Analyst
Steven Volkmann -- Jefferies -- Analyst
David Raso -- Evercore ISI -- Analyst
Mig Dobre -- Robert W. Baird -- Analyst
Larry De Maria -- William Blair -- Analyst
Seth Weber -- RBC Capital Markets -- Analyst
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 Conditionsfor 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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Our ability to maintain strong performance under these conditions speaks to our success establishing a broad product lineup, including small tractors and turf equipment, as well as a more profitable international presence. Backed by solid performance in 2017 and our strong outlook for the year ahead, we firmly believe the company is in a prime position to capitalize on the world's increasing need for advanced equipment and is set to deliver stronger and more consistent results in the future. Deere & Company (NYSE: DE) Q4 2017 Earnings Conference Call Nov. 22, 2017 10:00 a.m.
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Josh Jepsen -- Manager, Investor Communications Today, John Deere announced its fourth quarter financial results and the end to another successful year. Duration: 60 minutes Call Participants: Tony Huegel -- Director, Investor Relations Josh Jepsen -- Manager, Investor Communications Raj Kalathur -- Chief Financial Officer Andrew Casey -- Wells Fargo -- Analyst Jerry Revich -- Goldman Sachs -- Analyst Jamie Cook -- Credit Suisse -- Analyst Rob Wertheimer -- Melius Research -- Analyst Ann Duignan -- JPMorgan Chase -- Analyst Nicole DeBlase -- Deutsche Bank -- Analyst Steven Fisher -- UBS -- Analyst Joel Tiss -- BMO Capital Markets -- Analyst Joe O'Dea -- Vertical Research Partners -- Analyst Timothy Thein -- Citigroup -- Analyst Steven Volkmann -- Jefferies -- Analyst David Raso -- Evercore ISI -- Analyst Mig Dobre -- Robert W. Baird -- Analyst Larry De Maria -- William Blair -- Analyst Seth Weber -- RBC Capital Markets -- Analyst More DE analysis This article is a transcript of this conference call produced for The Motley Fool. Deere & Company (NYSE: DE) Q4 2017 Earnings Conference Call Nov. 22, 2017 10:00 a.m.
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Duration: 60 minutes Call Participants: Tony Huegel -- Director, Investor Relations Josh Jepsen -- Manager, Investor Communications Raj Kalathur -- Chief Financial Officer Andrew Casey -- Wells Fargo -- Analyst Jerry Revich -- Goldman Sachs -- Analyst Jamie Cook -- Credit Suisse -- Analyst Rob Wertheimer -- Melius Research -- Analyst Ann Duignan -- JPMorgan Chase -- Analyst Nicole DeBlase -- Deutsche Bank -- Analyst Steven Fisher -- UBS -- Analyst Joel Tiss -- BMO Capital Markets -- Analyst Joe O'Dea -- Vertical Research Partners -- Analyst Timothy Thein -- Citigroup -- Analyst Steven Volkmann -- Jefferies -- Analyst David Raso -- Evercore ISI -- Analyst Mig Dobre -- Robert W. Baird -- Analyst Larry De Maria -- William Blair -- Analyst Seth Weber -- RBC Capital Markets -- Analyst More DE analysis This article is a transcript of this conference call produced for The Motley Fool. Deere & Company (NYSE: DE) Q4 2017 Earnings Conference Call Nov. 22, 2017 10:00 a.m. Good morning and welcome to Deere & Company Fourth Quarter Earnings Conference Call.
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Duration: 60 minutes Call Participants: Tony Huegel -- Director, Investor Relations Josh Jepsen -- Manager, Investor Communications Raj Kalathur -- Chief Financial Officer Andrew Casey -- Wells Fargo -- Analyst Jerry Revich -- Goldman Sachs -- Analyst Jamie Cook -- Credit Suisse -- Analyst Rob Wertheimer -- Melius Research -- Analyst Ann Duignan -- JPMorgan Chase -- Analyst Nicole DeBlase -- Deutsche Bank -- Analyst Steven Fisher -- UBS -- Analyst Joel Tiss -- BMO Capital Markets -- Analyst Joe O'Dea -- Vertical Research Partners -- Analyst Timothy Thein -- Citigroup -- Analyst Steven Volkmann -- Jefferies -- Analyst David Raso -- Evercore ISI -- Analyst Mig Dobre -- Robert W. Baird -- Analyst Larry De Maria -- William Blair -- Analyst Seth Weber -- RBC Capital Markets -- Analyst More DE analysis This article is a transcript of this conference call produced for The Motley Fool. Deere & Company (NYSE: DE) Q4 2017 Earnings Conference Call Nov. 22, 2017 10:00 a.m. Good morning and welcome to Deere & Company Fourth Quarter Earnings Conference Call.
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2017-11-24 00:00:00 UTC
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Company News For Nov 24, 2017
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https://www.nasdaq.com/articles/company-news-for-nov-24-2017-2017-11-24
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Deere & Company's DE shares increased 4.3% after posting fiscal fourth-quarter earnings of $1.57, beating the Zacks Consensus Estimate of $1.46
Shares of Guess', Inc. GES plunged 13% after reporting fiscal third-quarter revenues of $554.1 million, missing the Zacks Consensus Estimate of $566 million
GameStop Corp's GME shares advanced 3.8% after posting fiscal third-quarter adjusted earnings of $0.54 per share, higher than the Zacks Consensus Estimate of $0.43
Shares of HP Inc. HPQ slumped 5% after projecting fiscal first-quarter non-GAAP earnings in the range of $0.40-0.43 per share (mid-point: $0.415), lower than the Zacks Consensus Estimate of $0.42
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HP Inc. (HPQ): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Gamestop Corporation (GME): Free Stock Analysis Report
Guess?, Inc. (GES): 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's DE shares increased 4.3% after posting fiscal fourth-quarter earnings of $1.57, beating the Zacks Consensus Estimate of $1.46 Shares of Guess', Inc. GES plunged 13% after reporting fiscal third-quarter revenues of $554.1 million, missing the Zacks Consensus Estimate of $566 million GameStop Corp's GME shares advanced 3.8% after posting fiscal third-quarter adjusted earnings of $0.54 per share, higher than the Zacks Consensus Estimate of $0.43 Shares of HP Inc. HPQ slumped 5% after projecting fiscal first-quarter non-GAAP earnings in the range of $0.40-0.43 per share (mid-point: $0.415), lower than the Zacks Consensus Estimate of $0.42 Want the latest recommendations from Zacks Investment Research? Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Gamestop Corporation (GME): Free Stock Analysis Report Guess?, Inc. (GES): 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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Deere & Company's DE shares increased 4.3% after posting fiscal fourth-quarter earnings of $1.57, beating the Zacks Consensus Estimate of $1.46 Shares of Guess', Inc. GES plunged 13% after reporting fiscal third-quarter revenues of $554.1 million, missing the Zacks Consensus Estimate of $566 million GameStop Corp's GME shares advanced 3.8% after posting fiscal third-quarter adjusted earnings of $0.54 per share, higher than the Zacks Consensus Estimate of $0.43 Shares of HP Inc. HPQ slumped 5% after projecting fiscal first-quarter non-GAAP earnings in the range of $0.40-0.43 per share (mid-point: $0.415), lower than the Zacks Consensus Estimate of $0.42 Want the latest recommendations from Zacks Investment Research? Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Gamestop Corporation (GME): Free Stock Analysis Report Guess?, Inc. (GES): 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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Deere & Company's DE shares increased 4.3% after posting fiscal fourth-quarter earnings of $1.57, beating the Zacks Consensus Estimate of $1.46 Shares of Guess', Inc. GES plunged 13% after reporting fiscal third-quarter revenues of $554.1 million, missing the Zacks Consensus Estimate of $566 million GameStop Corp's GME shares advanced 3.8% after posting fiscal third-quarter adjusted earnings of $0.54 per share, higher than the Zacks Consensus Estimate of $0.43 Shares of HP Inc. HPQ slumped 5% after projecting fiscal first-quarter non-GAAP earnings in the range of $0.40-0.43 per share (mid-point: $0.415), lower than the Zacks Consensus Estimate of $0.42 Want the latest recommendations from Zacks Investment Research? Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Gamestop Corporation (GME): Free Stock Analysis Report Guess?, Inc. (GES): 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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Deere & Company's DE shares increased 4.3% after posting fiscal fourth-quarter earnings of $1.57, beating the Zacks Consensus Estimate of $1.46 Shares of Guess', Inc. GES plunged 13% after reporting fiscal third-quarter revenues of $554.1 million, missing the Zacks Consensus Estimate of $566 million GameStop Corp's GME shares advanced 3.8% after posting fiscal third-quarter adjusted earnings of $0.54 per share, higher than the Zacks Consensus Estimate of $0.43 Shares of HP Inc. HPQ slumped 5% after projecting fiscal first-quarter non-GAAP earnings in the range of $0.40-0.43 per share (mid-point: $0.415), lower than the Zacks Consensus Estimate of $0.42 Want the latest recommendations from Zacks Investment Research? Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Gamestop Corporation (GME): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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3db89357-8b71-49ce-90f3-a2181f2d4311
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722206.0
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2017-11-24 00:00:00 UTC
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A Wounded Deer Leaps Highest--But Deere Leaps Higher Still
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DE
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https://www.nasdaq.com/articles/wounded-deer-leaps-highest-deere-leaps-higher-still-2017-11-24
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Shareholders of Deere & Co. (DE) have something to be thankful for this holiday season, as the heavy equipment maker reported better-than-expected earnings amid ongoing demand.
Getty Images
The stock is trading up again Friday, perhaps getting a bit of a boost from RBC Capital Markets, which raised its target price on Deere.
Analyst Seth Weber and his team reiterated a Sector Perform rating on the stock but boosted their price target from $134 to $155, and also raised their 2018 estimates for Deere, citing the upbeat quarterly report. However, "muted" farm fundamentals keep him on the sidelines, rather than raising it to a Buy.
Weber writes that current trends in agriculture are better than he anticipated, as Deere is benefitting from replacement demand, as well as its own cost initiatives. He notes that its construction business is still going strong, and he thinks that the Wirtgen acquisition "has potential." More from his note:
Deere is up 0.5% to $146 at recent check, and has climbed 41% this year.
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 of Deere & Co. (DE) have something to be thankful for this holiday season, as the heavy equipment maker reported better-than-expected earnings amid ongoing demand. Getty Images The stock is trading up again Friday, perhaps getting a bit of a boost from RBC Capital Markets, which raised its target price on Deere. Analyst Seth Weber and his team reiterated a Sector Perform rating on the stock but boosted their price target from $134 to $155, and also raised their 2018 estimates for Deere, citing the upbeat quarterly report.
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Getty Images The stock is trading up again Friday, perhaps getting a bit of a boost from RBC Capital Markets, which raised its target price on Deere. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shareholders of Deere & Co. (DE) have something to be thankful for this holiday season, as the heavy equipment maker reported better-than-expected earnings amid ongoing demand.
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Shareholders of Deere & Co. (DE) have something to be thankful for this holiday season, as the heavy equipment maker reported better-than-expected earnings amid ongoing demand. Getty Images The stock is trading up again Friday, perhaps getting a bit of a boost from RBC Capital Markets, which raised its target price on Deere. Analyst Seth Weber and his team reiterated a Sector Perform rating on the stock but boosted their price target from $134 to $155, and also raised their 2018 estimates for Deere, citing the upbeat quarterly report.
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Shareholders of Deere & Co. (DE) have something to be thankful for this holiday season, as the heavy equipment maker reported better-than-expected earnings amid ongoing demand. Getty Images The stock is trading up again Friday, perhaps getting a bit of a boost from RBC Capital Markets, which raised its target price on Deere. Analyst Seth Weber and his team reiterated a Sector Perform rating on the stock but boosted their price target from $134 to $155, and also raised their 2018 estimates for Deere, citing the upbeat quarterly report.
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2017-11-24 00:00:00 UTC
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Why Alamo (ALG) Stock Should Be Added to Your Portfolio Now
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DE
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https://www.nasdaq.com/articles/why-alamo-alg-stock-should-be-added-to-your-portfolio-now-2017-11-24
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We believe that Alamo Group, Inc.ALG is a solid choice for investors seeking exposure in the machinery space. The company is poised to gain traction from its initiatives to augment operational efficiencies and improve end-market demand. Further, synergies from acquired assets will be beneficial. The company currently has a market capitalization of $1.4 billion.
The stock has been upgraded to a Zacks Rank #2 (Buy) on Nov 23.
Alamo Group reported better-than-expected results in two of the last four quarters, while lagging estimates in one and delivering in-line results in one. Average earnings surprise was a positive 6.12%. Notably, the company's shares have rallied 30.2% in the last three months, outperforming 23% growth of the industry .
Why the Upgrade?
Before we begin, a brief discussion on Alamo Group's results for the third quarter of 2017 has been provided. The quarter's net income grew 25.4% year over year while net sales advanced 10.9% on the back of healthy growth in Industrial, Agricultural and European division sales. Backlog at quarter-end represented 31.7% growth in the year-ago quarter. Margin profile improved, with both gross and operating margins increasing 180 basis points year over year.
We believe that the company is well placed to gain traction from its diversified product portfolio and a solid network of over 6,000 dealers and distributors across nations. Further, it has a solid customer base in various end-markets, including government, agricultural, commercial turf, industrial and others. In the coming quarters, it believes that improving demand for products in the agriculture sector and snow removal will prove beneficial. This will be further aided by strengthening of vacuum truck business and favorable impact of foreign currency translation.
Alamo's initiatives to improve operating efficiencies are also worth mentioning. Actions like consolidation of manufacturing locations, focus on technologically advanced equipment to lower input costs and leveraging benefits from group purchasing initiatives have been prioritised by the company. Further, initiatives include ensuring reduced lead times, improving assets usage and enhancing manufacturing efficiencies.
Additionally, Alamo's acquisitive nature has helped in business expansion over time. In June this year, the company completed the acquisition of Virginia-based Old Dominion Brush Company, Inc. and Brazil-based Santa Izabel Agro Industria, Ltda. The Old Dominion Brush buyout will solidify the company's infrastructure maintenance equipment and parts business, while Santa Izabel Agro acquisition will complement its Herder operation in Brazil. Moreover, the company acquired Canada-based R.P.M. Tech Inc in August. This asset will be integrated with Alamo's Industrial division and strengthen its snow removal products offerings. In the first nine months of 2017, acquired assets generated net sales of $11.6 million.
The stock's Zacks Consensus Estimate stands at $4.35 for 2017 and $4.83 for 2018, reflecting growth of 4.3% and 6.9% from their respective estimates 30 days ago.
Alamo Group, Inc. Price and Consensus
Alamo Group, Inc. Price and Consensus | Alamo Group, Inc. Quote
Other Stocks to Consider
Some other top-ranked stocks worth considering in the machinery industry include Briggs & Stratton Corporation BGG , Deere & Company DE and Altra Industrial Motion Corporation AIMC . While Briggs & Stratton sports a Zacks Rank of 1 (Strong Buy), both Deere & Company and Altra Industrial Motion carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Briggs & Stratton pulled off an average positive earnings surprise of 8.62% in the last four quarters. Also, earnings estimates for fiscal 2018 and fiscal 2019 were revised upward in the last 60 days.
Deere delivered an average positive earnings surprise of 19.52% in the trailing four quarters. Also, earnings estimates for fiscal 2018 and fiscal 2019 improved in the past 60 days.
Altra Industrial Motion's financial performance was impressive, with an average positive earnings surprise of 17.30% in the last four quarters. Also, earnings estimates for 2017 and 2018 were revised upward in the last 60 days.
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Deere & Company (DE): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
Briggs & Stratton Corporation (BGG): Free Stock Analysis Report
Altra Industrial Motion Corp. (AIMC): 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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We believe that the company is well placed to gain traction from its diversified product portfolio and a solid network of over 6,000 dealers and distributors across nations. The Old Dominion Brush buyout will solidify the company's infrastructure maintenance equipment and parts business, while Santa Izabel Agro acquisition will complement its Herder operation in Brazil. The company is poised to gain traction from its initiatives to augment operational efficiencies and improve end-market demand.
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Alamo Group, Inc. Price and Consensus Alamo Group, Inc. Price and Consensus | Alamo Group, Inc. Quote Other Stocks to Consider Some other top-ranked stocks worth considering in the machinery industry include Briggs & Stratton Corporation BGG , Deere & Company DE and Altra Industrial Motion Corporation AIMC . While Briggs & Stratton sports a Zacks Rank of 1 (Strong Buy), both Deere & Company and Altra Industrial Motion carry a Zacks Rank #2 (Buy). Click to get this free report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report To read this article on Zacks.com click here.
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Alamo Group, Inc. Price and Consensus Alamo Group, Inc. Price and Consensus | Alamo Group, Inc. Quote Other Stocks to Consider Some other top-ranked stocks worth considering in the machinery industry include Briggs & Stratton Corporation BGG , Deere & Company DE and Altra Industrial Motion Corporation AIMC . While Briggs & Stratton sports a Zacks Rank of 1 (Strong Buy), both Deere & Company and Altra Industrial Motion carry a Zacks Rank #2 (Buy). Click to get this free report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Briggs & Stratton Corporation (BGG): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company is poised to gain traction from its initiatives to augment operational efficiencies and improve end-market demand. Alamo Group, Inc. Price and Consensus Alamo Group, Inc. Price and Consensus | Alamo Group, Inc. Quote Other Stocks to Consider Some other top-ranked stocks worth considering in the machinery industry include Briggs & Stratton Corporation BGG , Deere & Company DE and Altra Industrial Motion Corporation AIMC . 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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722208.0
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2017-11-22 00:00:00 UTC
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Stocks Inch Higher At Open, Nasdaq Leads; HPE Dives On CEO's Exit
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DE
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https://www.nasdaq.com/articles/stocks-inch-higher-open-nasdaq-leads-hpe-dives-ceos-exit-2017-11-22
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Stocks opened to dime thin gains on Wednesday, as Hewlett Packard Enterprise ( HPE ) and HP Inc. ( HPQ ) dragged on early trade.
[ibd-display-video id=2892160 width=50 float=left autostart=true]The Dow Jones industrial average and the S&P 500 opened effectively flat, while the Nasdaq Composite etched a 0.1% advnace.
Oil prices provided some early lift, with U.S. benchmark crude rising nearly 2% to just below $58 a barrel - a level not touched since July 2015. The trigger appeared to be weekly data released late Tuesday by the American Petroleum Institute which indicated a 6.4 million-barrel drawdown to inventories.
The number was three times the decline that had been forecast by economists, but effectively evened the prior week's surprise buildup of 6 million barrels. The Energy Information Administration provides its weekly view into oil inventories at 10:30 a.m. ET.
HP Enterprise Loses Whitman; Deere, Gamestop Leap
HP Inc. opened down 5%, and Hewlett Packard Enterprise sliced 6% lower at the starting bell, the worst early declines among S&P 500 stocks, after reporting fiscal fourth-quarter results late Thursday. HP Inc. met or beat its quarterly targets from analysts, and offered first-quarter guidance in line with consensus views. HP Enterprise provided mixed fourth-quarter numbers and weak first-quarter guidance. HPE Chief Executive Meg Whitman announced she would exit her position in 2018, to be replaced by HPE President Antonio Neri.
HP Inc. shares are extended, reaching new highs after a rebound from 10-week support. HP Enterprise stock is hashing out the latest in a series of side-by-side bases, all contained by resistance around the 15 price level.
Agriculture and construction equipment maker Deere ( DE ) throttled up 5% after reporting a better-than-expected performance in its fiscal fourth quarter. The stock is extended and taking out new highs above a cup-with-handle buy point at 129.38.
On the Dow, McDonald's ( MCD ) was the early leader, up 1%, on the verge of a new high and extended above a 160.08 buy point.
Oil drilling stocks held a number of the top early gains among S&P 500 stocks, with Ensco ( ESV ) and Diamond Offshore (DO) up more than 2% apiece. But Gamestop (GME) led the index, up 6% on above-forecast results reported after Tuesday's close.
China-based e-commerce services play Baozun (BZUN) tumbled 8% in early action. The IBD Global Leaders name reported third-quarter earnings and revenue above estimates late Tuesday. The stock has formed a double-bottom base with a buy point at 37.95.
Among IBD stocks , Alarm.com (ALRM) climbed 1% in opening trade. The stock is testing resistance at its 10-week moving average as it attempts to claw back from a deep, three-week sell-off.
Durable Goods Orders, Jobless Claims Slow
Durable goods orders decreased 1.2% in October, the Commerce Department estimated, down from September's 2.2% jump and below projections for a 0.4% increase. Minus transportation, orders rose 0.4%, just below forecasts for a 0.5% gain.
First-time unemployment claims dropped sharply, to 239,000 in the week ended Nov. 18 vs. 252,000 applications in the prior week, according to the Labor Department. That was roughly in line with the 240,000 that a consensus of economists had targeted.
The University of Michigan delivers its final tally on November consumer sentiment at 10 a.m ET, and the Federal Reserve's release of minutes from the Federal Open Market Committee's Nov. 1 meeting is scheduled for 2 p.m. ET.
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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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Stocks opened to dime thin gains on Wednesday, as Hewlett Packard Enterprise ( HPE ) and HP Inc. ( HPQ ) dragged on early trade. Agriculture and construction equipment maker Deere ( DE ) throttled up 5% after reporting a better-than-expected performance in its fiscal fourth quarter. The Big Picture: Tech Stocks Underscore Their Dominance Six Ways The 3-Weeks Tight Pattern Can Be Faulty After Deere, Watch This Rare Pattern: Investing Action Plan IBD Investor Research Tools Getting Started With IBD 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 dime thin gains on Wednesday, as Hewlett Packard Enterprise ( HPE ) and HP Inc. ( HPQ ) dragged on early trade. HP Enterprise Loses Whitman; Deere, Gamestop Leap HP Inc. opened down 5%, and Hewlett Packard Enterprise sliced 6% lower at the starting bell, the worst early declines among S&P 500 stocks, after reporting fiscal fourth-quarter results late Thursday. Durable Goods Orders, Jobless Claims Slow Durable goods orders decreased 1.2% in October, the Commerce Department estimated, down from September's 2.2% jump and below projections for a 0.4% increase.
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Stocks opened to dime thin gains on Wednesday, as Hewlett Packard Enterprise ( HPE ) and HP Inc. ( HPQ ) dragged on early trade. HP Enterprise Loses Whitman; Deere, Gamestop Leap HP Inc. opened down 5%, and Hewlett Packard Enterprise sliced 6% lower at the starting bell, the worst early declines among S&P 500 stocks, after reporting fiscal fourth-quarter results late Thursday. The Big Picture: Tech Stocks Underscore Their Dominance Six Ways The 3-Weeks Tight Pattern Can Be Faulty After Deere, Watch This Rare Pattern: Investing Action Plan IBD Investor Research Tools Getting Started With IBD 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 dime thin gains on Wednesday, as Hewlett Packard Enterprise ( HPE ) and HP Inc. ( HPQ ) dragged on early trade. The number was three times the decline that had been forecast by economists, but effectively evened the prior week's surprise buildup of 6 million barrels. HP Enterprise Loses Whitman; Deere, Gamestop Leap HP Inc. opened down 5%, and Hewlett Packard Enterprise sliced 6% lower at the starting bell, the worst early declines among S&P 500 stocks, after reporting fiscal fourth-quarter results late Thursday.
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2af316c5-44c7-4f44-a160-cc2afc5fef50
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722209.0
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2017-11-22 00:00:00 UTC
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Deere & Company Stock Jumps on Q4 Earnings Beat
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DE
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https://www.nasdaq.com/articles/deere-company-stock-jumps-q4-earnings-beat-2017-11-22
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company (NYSE: DE ) stock was on its way up today following an earnings beat for its fiscal fourth quarter of 2017.
Source: Ford8n via Flickr (Modified)
During its fiscal fourth quarter of the year, Deere & Company reported earnings per share of $1.57. This is up 74% from its earnings per share reported in the same period of the year prior. It was also a boost to DE stock by coming in above Wall Street's earnings per share estimate of $1.47 for the quarter.
Deere & Company reported revenue of $8.02 billion during its fourth quarter of 2017. This is a 23% increase over its revenue from its fiscal fourth quarter of 2016. It also easily beat out analysts' revenue estimate of $6.99 billion for the fiscal fourth quarter of the year.
This earnings report also includes Deere & Company's results for the full year of fiscal 2017. The equipment company reported earnings per share of $6.68 on revenue of $29.74 billion for the year. Wall Street was estimating earnings per share of $6.50 on revenue of $25.71 billion for fiscal 2017.
Net income reported by Deere & Company in its fiscal fourth quarter of 2017 was $510 million, which is up 79% from the same time last year. Net income for the fiscal full year of 2017 was $2.16 billion, which is up 42% from the previous year.
7 Marijuana Stocks to Buy That Won't Burn You
Deere & Company also provided an outlook for fiscal 2018 in its most recent earnings report. The company says that it is expecting revenue for the year to be up roughly 22% from its fiscal 2017 revenue. It is also expecting net income for the year to come in around $2.6 billion.
DE stock was up 3% as of Wednesday morning and is up 39% year-to-date.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
The post Deere & Company Stock Jumps on Q4 Earnings Beat 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 fourth quarter of the year, Deere & Company reported earnings per share of $1.57. Net income reported by Deere & Company in its fiscal fourth quarter of 2017 was $510 million, which is up 79% from the same time last year. 7 Marijuana Stocks to Buy That Won't Burn You Deere & Company also provided an outlook for fiscal 2018 in its most recent earnings report.
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Source: Ford8n via Flickr (Modified) During its fiscal fourth quarter of the year, Deere & Company reported earnings per share of $1.57. Deere & Company reported revenue of $8.02 billion during its fourth quarter of 2017. Net income reported by Deere & Company in its fiscal fourth quarter of 2017 was $510 million, which is up 79% from the same time last year.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was on its way up today following an earnings beat for its fiscal fourth quarter of 2017. Source: Ford8n via Flickr (Modified) During its fiscal fourth quarter of the year, Deere & Company reported earnings per share of $1.57. Net income reported by Deere & Company in its fiscal fourth quarter of 2017 was $510 million, which is up 79% from the same time last year.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE: DE ) stock was on its way up today following an earnings beat for its fiscal fourth quarter of 2017. Deere & Company reported revenue of $8.02 billion during its fourth quarter of 2017. Source: Ford8n via Flickr (Modified) During its fiscal fourth quarter of the year, Deere & Company reported earnings per share of $1.57.
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722210.0
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2017-11-22 00:00:00 UTC
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Santa Claus Rally Comes Early This Year
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DE
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https://www.nasdaq.com/articles/santa-claus-rally-comes-early-year-2017-11-22
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Wednesday, November 22, 2017
Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for. From a continuing Tech rally to the awakening of a slumbering Energy giant and even stronger-than-expected Retail earnings of late, we've seen the Dow Jones rise 25%, the Nasdaq up 29% and the S&P 500 19% higher than a year ago - all currently at all-time record highs. Even bitcoin has ratcheted up enormous gains in 2017. Wherever an investor turns, it seems, there has been an opportunity to make money.
Many analysts rightfully predicted a market rally following the surprise electoral victory of President Trump in November 2016, with promises of rolled-back regulatory measures allowing corporations to increase profit margins, and of course the sweeping tax reform proposals, which have had new life breathed into them as of yesterday; several analysts now see positive signs out of Congress that a large corporate tax cut is indeed coming. And with global marketplaces recovering from myriad difficulties - from Europe to China and finally higher oil prices from the Middle East - headwinds to market growth are at historically low levels.
Once Janet Yellen steps down from her post as Fed Chair, and replaced by Jay Powell, we also look to see interest rate hikes resume. Most analysts expect another quarter-point rise to a 1.25-1.5% range, with 2018 bringing another as early as March. It may even be possible to see rates hit 2% at some point within calendar 2018, which would be a boon for banks and insurance companies, and may increase mortgage activity ahead of concerns housing contracts might start getting expensive.
Finally, although many expected market growth, no one thought a nascent Trump presidency would have fostered such low volatility on the bourses this year. Yet here we are, and with 4% unemployment and 3% growth in GDP, we look to be continuing this strength moving into 2018, as well. Santa has good cause to rally early this year!
Jobless Claims, Durable Goods Orders
Because the markets will be closed tomorrow for the Thanksgiving holiday, Initial Jobless Claims for last week have been released a day early. A total of 239K claims (down 13K from an upwardly revised 252K the previous week) illustrates the labor market remaining healthy and steady. Continuing claims rose a bit to 1.904 million, but remain beneath the psychologically significant 2 million claims, which we have not seen now for many months. More to be thankful for!
The latest Durable Goods Orders report, however, came in weaker than expected. The headline number of -1.2% missed the +0.3% estimate, though last month's total was revised upward from 1.8% to 2.2% on higher shipments. Ex-Defense for the most recent month was -0.8% and Capital Goods Orders -0.5% (disappointing the +0.5% estimate). Yet ex-Transportation was +0.4% and the decline in Defense spending is really just a seasonal reality. So nothing to get too upset about here. Durable Goods reads often display a level of volatility above other economic metrics.
Deere & Co. (DE) Beats Estimates
Agriculture machinery major Deere & Co. DE shares are up more than 4.5% in today's pre-market, following a fiscal Q4 earnings beat by 11 cents to $1.57 per share. Revenues in the quarter also topped expectations, reporting $7.09 billion compared to the Zacks consensus $6.91 billion. The Zacks Rank #2 (Buy) company also expects net sales in 2018 to increase 19% year over year, on favorable foreign currency effect. This is at least the fifth straight positive earnings surprise for Deere.
Mark Vickery
Senior Editor
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wednesday, November 22, 2017 Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for. Many analysts rightfully predicted a market rally following the surprise electoral victory of President Trump in November 2016, with promises of rolled-back regulatory measures allowing corporations to increase profit margins, and of course the sweeping tax reform proposals, which have had new life breathed into them as of yesterday; several analysts now see positive signs out of Congress that a large corporate tax cut is indeed coming. Finally, although many expected market growth, no one thought a nascent Trump presidency would have fostered such low volatility on the bourses this year.
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Click to get this free report SPDR-DJ IND AVG (DIA): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Wednesday, November 22, 2017 Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for. Many analysts rightfully predicted a market rally following the surprise electoral victory of President Trump in November 2016, with promises of rolled-back regulatory measures allowing corporations to increase profit margins, and of course the sweeping tax reform proposals, which have had new life breathed into them as of yesterday; several analysts now see positive signs out of Congress that a large corporate tax cut is indeed coming.
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Many analysts rightfully predicted a market rally following the surprise electoral victory of President Trump in November 2016, with promises of rolled-back regulatory measures allowing corporations to increase profit margins, and of course the sweeping tax reform proposals, which have had new life breathed into them as of yesterday; several analysts now see positive signs out of Congress that a large corporate tax cut is indeed coming. Jobless Claims, Durable Goods Orders Because the markets will be closed tomorrow for the Thanksgiving holiday, Initial Jobless Claims for last week have been released a day early. Click to get this free report SPDR-DJ IND AVG (DIA): ETF Research Reports NASDAQ-100 SHRS (QQQ): ETF Research Reports SPDR-SP 500 TR (SPY): ETF Research Reports Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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The latest Durable Goods Orders report, however, came in weaker than expected. Wednesday, November 22, 2017 Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for. Many analysts rightfully predicted a market rally following the surprise electoral victory of President Trump in November 2016, with promises of rolled-back regulatory measures allowing corporations to increase profit margins, and of course the sweeping tax reform proposals, which have had new life breathed into them as of yesterday; several analysts now see positive signs out of Congress that a large corporate tax cut is indeed coming.
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722211.0
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2017-11-22 00:00:00 UTC
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Deere (DE) Tops Q4 Earnings & Sales, FY'18 View Bullish
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DE
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https://www.nasdaq.com/articles/deere-de-tops-q4-earnings-sales-fy18-view-bullish-2017-11-22
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Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported fourth-quarter fiscal 2017 results, wherein earnings of $1.57 surpassed the Zacks Consensus Estimate of $1.46.
Revenue: Deere posted revenues of $7.09 billion, beating the Zacks Consensus Estimate of $6.91 billion.
Outlook: Deere projects total equipment sales to increase about 22% year over year in fiscal 2018 and to rise about 38% in the first quarter of fiscal 2018, compared with year-ago periods. The forecast includes a positive foreign-currency translation effect of about 2% for fiscal 2018 and about 3% in the first quarter. For fiscal 2018, Deere expects net sales to increase about 19% year over year and projects net income of about $2.6 billion.
Earnings Estimates Revision: The Zacks Consensus Estimate for the fourth quarter of fiscal 2017 has moved north 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 55.14%.
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 4% 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 fourth-quarter fiscal 2017 results, wherein earnings of $1.57 surpassed the Zacks Consensus Estimate of $1.46. Revenue: Deere posted revenues of $7.09 billion, beating the Zacks Consensus Estimate of $6.91 billion. Outlook: Deere projects total equipment sales to increase about 22% year over year in fiscal 2018 and to rise about 38% in the first quarter of fiscal 2018, compared with year-ago periods.
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Revenue: Deere posted revenues of $7.09 billion, beating the Zacks Consensus Estimate of $6.91 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 fourth-quarter fiscal 2017 results, wherein earnings of $1.57 surpassed the Zacks Consensus Estimate of $1.46.
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Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported fourth-quarter fiscal 2017 results, wherein earnings of $1.57 surpassed the Zacks Consensus Estimate of $1.46. 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 $7.09 billion, beating the Zacks Consensus Estimate of $6.91 billion.
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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. Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported fourth-quarter fiscal 2017 results, wherein earnings of $1.57 surpassed the Zacks Consensus Estimate of $1.46. Revenue: Deere posted revenues of $7.09 billion, beating the Zacks Consensus Estimate of $6.91 billion.
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722212.0
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2017-11-22 00:00:00 UTC
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Thanksgiving Day Ahead
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DE
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https://www.nasdaq.com/articles/thanksgiving-day-ahead-2017-11-22
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nan
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nan
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Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for. From a continuing Tech rally to the awakening of a slumbering Energy giant and even stronger-than-expected Retail earnings of late, we've seen the Dow Jones rise 25%, the Nasdaq up 29% and the S&P 500 19% higher than a year ago - all currently at all-time record highs. Even bitcoin has ratcheted up enormous gains in 2017. Wherever an investor turns, it seems, there has been an opportunity to make money.
Many analysts rightfully predicted a market rally following the surprise electoral victory of President Trump in November 2016, with promises of rolled-back regulatory measures allowing corporations to increase profit margins, and of course the sweeping tax reform proposals, which have had new life breathed into them as of yesterday; several analysts now see positive signs out of Congress that a large corporate tax cut is indeed coming. And with global marketplaces recovering from myriad difficulties - from Europe to China and finally higher oil prices from the Middle East - headwinds to market growth are at historically low levels.
Once Janet Yellen steps down from her post as Fed Chair, and replaced by Jay Powell, we also look to see interest rate hikes resume. Most analysts expect another quarter-point rise to a 1.25-1.5% range, with 2018 bringing another as early as March. It may even be possible to see rates hit 2% at some point within calendar 2018, which would be a boon for banks and insurance companies, and may increase mortgage activity ahead of concerns housing contracts might start getting expensive.
Finally, although many expected market growth, no one thought a nascent Trump presidency would have fostered such low volatility on the bourses this year. Yet here we are, and with 4% unemployment and 3% growth in GDP, we look to be continuing this strength moving into 2018, as well. Santa has good cause to rally early this year!
Jobless Claims, Durable Goods Orders
Because the markets will be closed tomorrow for the Thanksgiving holiday, Initial Jobless Claims for last week have been released a day early. A total of 239K claims (down 13K from an upwardly revised 252K the previous week) illustrates the labor market remaining healthy and steady. Continuing claims rose a bit to 1.904 million, but remain beneath the psychologically significant 2 million claims, which we have not seen now for many months. More to be thankful for!
The latest Durable Goods Orders report, however, came in weaker than expected. The headline number of -1.2% missed the +0.3% estimate, though last month's total was revised upward from 1.8% to 2.2% on higher shipments. Ex-Defense for the most recent month was -0.8% and Capital Goods Orders -0.5% (disappointing the +0.5% estimate). Yet ex-Transportation was +0.4% and the decline in Defense spending is really just a seasonal reality. So nothing to get too upset about here. Durable Goods reads often display a level of volatility above other economic metrics.
Deere & Co. (DE) Beats Estimates
Agriculture machinery major Deere & Co. DE shares are up more than 4.5% in today's pre-market, following a fiscal Q4 earnings beat by 11 cents to $1.57 per share. Revenues in the quarter also topped expectations, reporting $7.09 billion compared to the Zacks consensus $6.91 billion. The Zacks Rank #2 (Buy) company also expects net sales in 2018 to increase 19% year over year, on favorable foreign currency effect. This is at least the fifth straight positive earnings surprise for Deere.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for. Many analysts rightfully predicted a market rally following the surprise electoral victory of President Trump in November 2016, with promises of rolled-back regulatory measures allowing corporations to increase profit margins, and of course the sweeping tax reform proposals, which have had new life breathed into them as of yesterday; several analysts now see positive signs out of Congress that a large corporate tax cut is indeed coming. Finally, although many expected market growth, no one thought a nascent Trump presidency would have fostered such low volatility on the bourses this year.
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The latest Durable Goods Orders report, however, came in weaker than expected. Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for.
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Many analysts rightfully predicted a market rally following the surprise electoral victory of President Trump in November 2016, with promises of rolled-back regulatory measures allowing corporations to increase profit margins, and of course the sweeping tax reform proposals, which have had new life breathed into them as of yesterday; several analysts now see positive signs out of Congress that a large corporate tax cut is indeed coming. Jobless Claims, Durable Goods Orders Because the markets will be closed tomorrow for the Thanksgiving holiday, Initial Jobless Claims for last week have been released a day early. Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for.
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Jobless Claims, Durable Goods Orders Because the markets will be closed tomorrow for the Thanksgiving holiday, Initial Jobless Claims for last week have been released a day early. The latest Durable Goods Orders report, however, came in weaker than expected. Always an ideal time to reflect on the niceties of the past year, market investors have had so much to be thankful for.
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7afdb6ce-5a6f-42ba-ad20-f5ad18616e33
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722213.0
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2017-11-22 00:00:00 UTC
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Hormel Foods Corporation: High Quality, Steady Growth
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DE
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https://www.nasdaq.com/articles/hormel-foods-corporation-high-quality-steady-growth-2017-11-22
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nan
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nan
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By Charles Fournier :
Introduction
Subsequent to my Hormel Foods Corporation (NYSE: HRL ) June 17, 2017 post and the addition of shares to the FFJ Portfolio , HRL acquired:
Fontanini Italian Meats and Sausages in August 2017 for $0.425B;
Cidade do Sol in August 2017 for ~$0.104B, thus providing an initial entry into the Brazilian market and a platform for future growth in South America.
On October 31, 2017, two days subsequent to HRL's 2017 fiscal year-end, it was announced that HRL had entered into a definitive agreement to acquire Columbus Manufacturing Inc. for ~$0.85B. This represents the largest acquisition in HRL's history.
This is an aggregate of ~$1.38B in recent acquisitions and is equivalent to ~22% of HRL's total assets of $6.37B as at the previous fiscal year end (October 2016).
These recent acquisitions are in addition to the following acquisitions:
Wholly Guacamole in 2012 - $0.22B
Skippy Peanut Butter in 2013 - $0.7B
Muscle Milk in 2014 - $0.45B
Applegate organic deli meats in 2015 - $0.775B
Justin's organic peanut butter in 2016 - $0.286B
These acquisitions are part of HRL's plan to reduce the volatility in its business.
In this article, I touch upon why HRL is a long-term hold for me.
Q4 2017 and FY2017 Results
Results can be accessed in the November 21, 2017 Form 8-K .
FY results were mixed with only the Grocery Products, Refrigerated Foods and International segments delivering record earnings despite one less week than in FY2016; Jenny-O Turkey Store and Specialty Products experienced challenges.
There continues to be an abundance of turkeys which is depressing prices. Management mentioned on its November 21st conference call that there is no indication that the turkey prices have bottomed out. It is, however, cautiously optimistic market improvements will begin to materialize in the second half of FY2018.
The challenge is that the turkey industry is operating near breakeven. HRL, however, is well above breakeven. It has cut production and is of the opinion the rest of the industry needs to do that as well, but this has not yet transpired.
In the interim, the value-added items are expected to grow. Jennie-O Lean Ground Turkey, for example, continues to show growth and take share from ground beef.
Specialty Products results disappointed with lower sales from its 2014 Muscle Milk ready-to-drink protein beverages acquisition. The necessary adjustments are currently being made by the new leadership team at CytoSport in order to gain back ground from this past year's setback.
In addition, there is uncertainty in the hog and pork markets. While hog supplies are expected to grow moderately, HRL believes hog supplies are well-matched to industry capacity over the long term. Short-term volatility is expected, however, and is dependent on the progress of new plants ramping up to full production.
The fundamentals of refrigerated foods, however, have never been better. While management expects a reduction in the commodity profits and refrigerated foods, it expects continued growth in its value added businesses to more than offset the declines.
Goodwill and Intangible Assets have certainly ballooned over the past several years as a result of multiple acquisitions. The total as at FY2008 amounted to $0.771B. This now amounts to $3.147B and this is before the closing of the Columbus acquisition. Fortunately, goodwill impairment over the years has been negligible; $0.0215B was incurred in FY2015, but in the grand scheme of things, this amount is negligible.
The most recent comprehensive details regarding Goodwill and Intangible Assets can be found in Note D on page 50 of HRL's 2016 Annual Report .
The all important cash flow from operations was $0.449B, an increase of 34% from $0.371 in FY2016. This increase was primarily related to decreases in working capital. The recent acquisitions are also expected to enhance cash flow.
FY2018 Projections
Earlier this year during HRL's Investor Day , management indicated:
The game plan is to continue to evolve into a broader food company;
Acceleration of, and aggressive expansion, in the food service business will continue. The recent Fontanini acquisition is an example of this;
HRL is to become a more global food company. Examples of progress made on this front include the recent Cidade do Sol acquisition in Brazil and its new plant in China. HRL's business in China is experiencing strong sales and earnings from SKIPPY peanut butter and from its branded meat products with HRL's new Jiaxing client producing and shipping products. HRL's manufacturing operations in China are now located in Beijing, Jiaxing, and Weifang.
Reduce volatility and increase balance by increasing sales of value added products as a percentage of total sales. The acquisition of purely value added businesses such as Fontanini, Cidade do Sol, and Columbus demonstrates HRL's progress in this regard.
HRL is growing through acquisition but is also prepared to divest non-strategic assets.
The modernization of HRL's supply chain.
The Grocery Products, Refrigerated Foods and International segments are expected to continue to drive growth as Jennie-O Turkey Store is expected to continue to experience challenging conditions.
HRL's FY2018 guidance reflected below excludes the pending Columbus acquisition which is expected to close December. This acquisition would generate total sales of ~ $0.3B and would be $0.02-$0.03 per share accretive to earnings in FY2018.
Net Sales Guidance: $9.4B-$9.8B
EPS Guidance: $1.60-$1.70
Dividends and Dividend Yield
HRL's dividend history can be found here .
On November 20, 2017, HRL announced its 52nd consecutive increase to its annual dividend. Effective February 15, 2018, shareholders will receive $0.1875/quarter; the annual dividend was raised to $0.75/share from $0.68/share.
The current dividend yield based on the November 21st closing stock price of $34.52 is ~1.97% and the forward dividend yield is ~2.17%. While the yield is low, the consistency of the annual increase is what appeals to me. The compound annual growth rate of HRL's dividend dating back to 1990 is just shy of 12%.
Valuation
The current mean FY2018 adjusted EPS estimate from various brokers is $1.64. There is, however, a significant disparity is earnings projections as reflected below.
Management's guidance is $1.60-$1.70. If we use the low, mid, and high end of the range and the $34.52 closing stock price, we get a PE of ~20.3, ~20.9, and ~21.6. While these valuation levels are superior to those in 2013-2016, they are several basis points higher than those evidenced in 2009-2012.
Source: Morningstar
Final Thoughts
HRL certainly has some challenges in a couple of its business lines. Fortunately, the diversification of its business has reduced volatility.
In my opinion, HRL is certainly not inexpensive at current levels. I do, however, view it as a high quality business that will reward me over the long term. I acquired HRL shares a few months ago because I like the company's consistency, growth potential, and quality and my opinion has not changed.
I wish you much success on your journey to financial freedom.
Thanks for reading!
Note:I appreciate the time you took to read this article and hope you got something out of it. As always, please leave any feedback and questions you may have and follow me at Financial Freedom is a Journey.
See also Deere & Company's ( DE ) Management on Q4 2017 Results - Earnings Call Transcript on seekingalpha.com
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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By Charles Fournier : Introduction Subsequent to my Hormel Foods Corporation (NYSE: HRL ) June 17, 2017 post and the addition of shares to the FFJ Portfolio , HRL acquired: Fontanini Italian Meats and Sausages in August 2017 for $0.425B; Cidade do Sol in August 2017 for ~$0.104B, thus providing an initial entry into the Brazilian market and a platform for future growth in South America. The necessary adjustments are currently being made by the new leadership team at CytoSport in order to gain back ground from this past year's setback. The most recent comprehensive details regarding Goodwill and Intangible Assets can be found in Note D on page 50 of HRL's 2016 Annual Report .
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These recent acquisitions are in addition to the following acquisitions: Wholly Guacamole in 2012 - $0.22B Skippy Peanut Butter in 2013 - $0.7B Muscle Milk in 2014 - $0.45B Applegate organic deli meats in 2015 - $0.775B Justin's organic peanut butter in 2016 - $0.286B These acquisitions are part of HRL's plan to reduce the volatility in its business. Net Sales Guidance: $9.4B-$9.8B EPS Guidance: $1.60-$1.70 Dividends and Dividend Yield HRL's dividend history can be found here . By Charles Fournier : Introduction Subsequent to my Hormel Foods Corporation (NYSE: HRL ) June 17, 2017 post and the addition of shares to the FFJ Portfolio , HRL acquired: Fontanini Italian Meats and Sausages in August 2017 for $0.425B; Cidade do Sol in August 2017 for ~$0.104B, thus providing an initial entry into the Brazilian market and a platform for future growth in South America.
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By Charles Fournier : Introduction Subsequent to my Hormel Foods Corporation (NYSE: HRL ) June 17, 2017 post and the addition of shares to the FFJ Portfolio , HRL acquired: Fontanini Italian Meats and Sausages in August 2017 for $0.425B; Cidade do Sol in August 2017 for ~$0.104B, thus providing an initial entry into the Brazilian market and a platform for future growth in South America. These recent acquisitions are in addition to the following acquisitions: Wholly Guacamole in 2012 - $0.22B Skippy Peanut Butter in 2013 - $0.7B Muscle Milk in 2014 - $0.45B Applegate organic deli meats in 2015 - $0.775B Justin's organic peanut butter in 2016 - $0.286B These acquisitions are part of HRL's plan to reduce the volatility in its business. HRL's business in China is experiencing strong sales and earnings from SKIPPY peanut butter and from its branded meat products with HRL's new Jiaxing client producing and shipping products.
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Reduce volatility and increase balance by increasing sales of value added products as a percentage of total sales. On November 20, 2017, HRL announced its 52nd consecutive increase to its annual dividend. By Charles Fournier : Introduction Subsequent to my Hormel Foods Corporation (NYSE: HRL ) June 17, 2017 post and the addition of shares to the FFJ Portfolio , HRL acquired: Fontanini Italian Meats and Sausages in August 2017 for $0.425B; Cidade do Sol in August 2017 for ~$0.104B, thus providing an initial entry into the Brazilian market and a platform for future growth in South America.
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5737f739-76a0-43e8-bc8c-32a1182b141c
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722214.0
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2017-11-22 00:00:00 UTC
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Deere & Co. Jumps To New High On Strong Q4 Earnings, 2018 Outlook
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DE
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https://www.nasdaq.com/articles/deere-co-jumps-new-high-strong-q4-earnings-2018-outlook-2017-11-22
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nan
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nan
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Deere & Co. ( DE ) reported fiscal fourth-quarter earnings that topped estimates on Wednesday, and the maker construction and agricultural equipment forecast a double-digit sales increase for fiscal 2018.
[ibd-display-video id=2102289 width=50 float=left autostart=true] Estimates: Earnings per share of $1.44, on net revenue of $6.911 billion.
Results: EPS surged 74% vs. a year earlier to $1.57. Net revenue swelled 26% to $7.094 billion. Total revenue rose 23% to $8.018 billion.
Outlook: The company forecast net sales and revenue to increase roughly 19% for fiscal 2018.
Shares popped 4.1% to 144.92 in premarket trading on the stock market today , which would be a record high. The stock is extended from 124.94 buy point of a cup-with-handle base.
The company said that results in farm and construction equipment showed improvement over the fiscal year. Deere singled out strength in South America, as it did when it reported results for the prior quarter in August.
A stronger showing in construction was seen helping the company, Trefis analysts said in an earnings preview.
"The economic fundamentals affecting the construction and forestry industries in North America are cause for continued optimism," management said on the company's third-quarter earnings call.
Farmers in recent years have been struggling from lower crop prices. The lower sales have meant they can't spend as much on the equipment made by Deere and others. But when the company reported fiscal third-quarter earnings, it cited improvement in farm equipment sales and said South America was "experiencing strong gains".
Meanwhile, Deere's construction business has been strong. Deere this year announced plans to buy Wirtgen Group, a German company that makes road construction equipment, for nearly $5 billion. That transaction was set to be finalized next month, Deere said Wednesday.
RELATED:
Deere & Co. Earnings Top Q3 Views, Sales Miss
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 this year announced plans to buy Wirtgen Group, a German company that makes road construction equipment, for nearly $5 billion. Deere & Co. ( DE ) reported fiscal fourth-quarter earnings that topped estimates on Wednesday, and the maker construction and agricultural equipment forecast a double-digit sales increase for fiscal 2018. [ibd-display-video id=2102289 width=50 float=left autostart=true] Estimates: Earnings per share of $1.44, on net revenue of $6.911 billion.
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Deere & Co. ( DE ) reported fiscal fourth-quarter earnings that topped estimates on Wednesday, and the maker construction and agricultural equipment forecast a double-digit sales increase for fiscal 2018. Deere & Co. Earnings Top Q3 Views, Sales Miss The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. [ibd-display-video id=2102289 width=50 float=left autostart=true] Estimates: Earnings per share of $1.44, on net revenue of $6.911 billion.
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Deere & Co. ( DE ) reported fiscal fourth-quarter earnings that topped estimates on Wednesday, and the maker construction and agricultural equipment forecast a double-digit sales increase for fiscal 2018. Deere this year announced plans to buy Wirtgen Group, a German company that makes road construction equipment, for nearly $5 billion. Deere & Co. Earnings Top Q3 Views, Sales Miss 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 & Co. ( DE ) reported fiscal fourth-quarter earnings that topped estimates on Wednesday, and the maker construction and agricultural equipment forecast a double-digit sales increase for fiscal 2018. [ibd-display-video id=2102289 width=50 float=left autostart=true] Estimates: Earnings per share of $1.44, on net revenue of $6.911 billion. The stock is extended from 124.94 buy point of a cup-with-handle base.
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d4521f62-cf4b-4988-ba7c-2fc630837b1f
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722215.0
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2017-11-22 00:00:00 UTC
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Why Deere, GameStop, and Axalta Coating Systems Jumped Today
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DE
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https://www.nasdaq.com/articles/why-deere-gamestop-and-axalta-coating-systems-jumped-today-2017-11-22
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nan
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nan
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Millions of Americans are already traveling to their Thanksgiving destinations, and that left Wall Street largely listless on Wednesday. The Dow Jones Industrials gave up ground, pulling back from record highs earlier in the week, but most major benchmarks were little changed given the lack of any earthshaking news on the macroeconomic or geopolitical front. Even with many market participants absent, some stocks still saw significant moves following favorable news. Deere (NYSE: DE) , GameStop (NYSE: GME) , and Axalta Coating Systems (NYSE: AXTA) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Deere drives higher
Shares of Deere gained 4% after the agricultural equipment specialist reported its fiscal fourth-quarter financial results. The tractor maker announced a 23% rise in worldwide revenue, helping to lift net income by nearly 80%. Deere said that strong conditions in South America were especially important to the company's overall performance, and the recent acquisition of road construction equipment specialist Wirtgen Group should help to diversify the company's exposure across a broader customer base. With many investors seeing the prospects for key users of heavy equipment continue to improve , Deere is looking to take advantage of a long-awaited cyclical upswing to prosper.
GameStop celebrates a win
GameStop stock climbed 4% in the wake of the company's favorable financial report. The video game retailer said that its third-quarter results included a gain in comparable-store sales of 1.9%, and earnings were far better than most had expected. GameStop has seen a shift in demand from its customers, with rising sales of new hardware and software products offsetting reduced revenue from used games. Many remain skeptical of GameStop's ability to survive in the long run due to the rise of direct-distribution models from game makers, but the holiday shopping season should tell investors a lot about the retailer's staying power.
Axalta plays the field
Finally, shares of Axalta Coating Systems finished higher by 5%. The paint company said that it had started talking with Japanese peer Nippon Paint to pursue a potential acquisition, essentially shunning previous merger talks with Dutch rivalAkzo Nobel within the past month. Akzo responded by breaking off discussions with Axalta, and without a firm offer from Nippon, Axalta is running the risk that it could end up without any final acquisition bid. Nevertheless, with considerable consolidation activity in the paint space, Axalta investors seem confident that the paint company will eventually complete a favorable deal.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of GameStop. 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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With many investors seeing the prospects for key users of heavy equipment continue to improve , Deere is looking to take advantage of a long-awaited cyclical upswing to prosper. Many remain skeptical of GameStop's ability to survive in the long run due to the rise of direct-distribution models from game makers, but the holiday shopping season should tell investors a lot about the retailer's staying power. Millions of Americans are already traveling to their Thanksgiving destinations, and that left Wall Street largely listless on Wednesday.
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Deere (NYSE: DE) , GameStop (NYSE: GME) , and Axalta Coating Systems (NYSE: AXTA) were among the best performers on the day. Deere drives higher Shares of Deere gained 4% after the agricultural equipment specialist reported its fiscal fourth-quarter financial results. Millions of Americans are already traveling to their Thanksgiving destinations, and that left Wall Street largely listless on Wednesday.
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Many remain skeptical of GameStop's ability to survive in the long run due to the rise of direct-distribution models from game makers, but the holiday shopping season should tell investors a lot about the retailer's staying power. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. Millions of Americans are already traveling to their Thanksgiving destinations, and that left Wall Street largely listless on Wednesday.
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Deere drives higher Shares of Deere gained 4% after the agricultural equipment specialist reported its fiscal fourth-quarter financial results. GameStop has seen a shift in demand from its customers, with rising sales of new hardware and software products offsetting reduced revenue from used games. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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90f65896-5859-443e-80f2-e153589e1fda
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722216.0
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2017-11-22 00:00:00 UTC
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Indexes End Mixed As 2 Sectors Dominate; Oil Settles At 2-Year High
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DE
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https://www.nasdaq.com/articles/indexes-end-mixed-2-sectors-dominate-oil-settles-2-year-high-2017-11-22
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nan
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nan
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Major stock indexes ended mixed and mostly unchanged Wednesday ahead of the Thanksgiving holiday.
[ibd-display-video id=2700154 width=50 float=left autostart=true]
The Dow Jones industrial average lost 0.3%, the S&P 500 eased 0.1% and the Nasdaq edged higher by 0.1%, good for another record closing high. Preliminary data showed volume on the NYSE and Nasdaq coming in lower than Tuesday's levels. The stock market will be closed Thursday and open for a half session Friday, closing at 1 p.m. ET.
In the stock market today , Centene ( CNC ) rallied 3% to 96.94. It's near the top of a flat base with a 98.82 entry. The gain was fueled by new ObamaCare enrollment data that showed continued strong signups. Several medical-related industry groups were among the day's top-10 performers. Centene is a member of the IBD 50 index of leading growth stocks.
Oil drillers and exploration and production firms also outperformed as benchmark crude oil jumped 2.1% to $58.02 a barrel, the highest close in more than two years. After finding support at the 50-day moving average, Matador Resources ( MTDR ) reclaimed a 27.97 buy point Wednesday, rising nearly 2% to 28.07.
The minutes from the Nov. 1 Fed meeting were released at 2 p.m. ET. The minutes showed the FOMC grappling with continued low inflation despite an improving economy and the tightest labor market in years. Wall Street remains confident about a quarter-point rate hike at the Dec. 13 meeting.
The 10-year Treasury yield was recently trading around 2.32%, down 4 basis points.
In earnings news, Deere & Company ( DE ) was a nice gainer, up 4%, after the company reported strong earnings and sales before the open. Quarterly profit jumped 74% from the year-ago quarter, while sales growth accelerated again, rising 23% to just over $8 billion. The maker of farm, turf, construction and forestry equipment was already extended from a couple of recent buy points headed into its earnings report.
HP Inc . ( HPQ ) slumped 5% despite in-line earnings and better-than-expected sales. Earnings guidance for the current quarter was also in line, but the company did not give a sales target. HP Inc. managed a solid close and found support at the 50-day moving average.
In related news, Hewlett Packard Enterprise ( HPE ) didn't fare much better. Shares slumped 7% after the company reported better-than-expected earnings and its first quarter of sales growth in quite some time. Wall Street seemed shaken by news that CEO Meg Whitman will step down effective February 2018.
Copart (CPRT) was a big gainer, soaring nearly 12%, after the provider of online car auctions reported its second straight quarter of accelerating earnings and sales growth. After a recent breakout from a flat base, Copart has quickly become extended after a bullish bounce off the 10-week moving average.
RELATED :
HP Inc. Stock Tumbles On In-Line Earnings And Outlook
Deere & Co. Jumps To New High On Strong Q4 Earnings, 2018 Outlook
Salesforce.com Earnings Beat, But Guidance Light As Stock Slides
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=2700154 width=50 float=left autostart=true] The Dow Jones industrial average lost 0.3%, the S&P 500 eased 0.1% and the Nasdaq edged higher by 0.1%, good for another record closing high. The maker of farm, turf, construction and forestry equipment was already extended from a couple of recent buy points headed into its earnings report. Copart (CPRT) was a big gainer, soaring nearly 12%, after the provider of online car auctions reported its second straight quarter of accelerating earnings and sales growth.
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Jumps To New High On Strong Q4 Earnings, 2018 Outlook Salesforce.com Earnings Beat, But Guidance Light As Stock Slides The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Major stock indexes ended mixed and mostly unchanged Wednesday ahead of the Thanksgiving holiday. [ibd-display-video id=2700154 width=50 float=left autostart=true] The Dow Jones industrial average lost 0.3%, the S&P 500 eased 0.1% and the Nasdaq edged higher by 0.1%, good for another record closing high.
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In earnings news, Deere & Company ( DE ) was a nice gainer, up 4%, after the company reported strong earnings and sales before the open. Jumps To New High On Strong Q4 Earnings, 2018 Outlook Salesforce.com Earnings Beat, But Guidance Light As Stock Slides The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Major stock indexes ended mixed and mostly unchanged Wednesday ahead of the Thanksgiving holiday.
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After a recent breakout from a flat base, Copart has quickly become extended after a bullish bounce off the 10-week moving average. Major stock indexes ended mixed and mostly unchanged Wednesday ahead of the Thanksgiving holiday. [ibd-display-video id=2700154 width=50 float=left autostart=true] The Dow Jones industrial average lost 0.3%, the S&P 500 eased 0.1% and the Nasdaq edged higher by 0.1%, good for another record closing high.
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722217.0
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2017-11-22 00:00:00 UTC
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Pre-Market Most Active for Nov 22, 2017 : BNDX, SQ, XNET, GME, DE, AXTA, QD, TVIX, MU, STM, ACWI, AAPL
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DE
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https://www.nasdaq.com/articles/pre-market-most-active-nov-22-2017-bndx-sq-xnet-gme-de-axta-qd-tvix-mu-stm-acwi-aapl-2017
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nan
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The NASDAQ 100 Pre-Market Indicator is up 7.35 to 6,385.98. The total Pre-Market volume is currently 3,260,894 shares traded.
The following are the most active stocks for the pre-market session :
Vanguard Total International Bond ETF ( BNDX ) is unchanged at $55.05, with 816,110 shares traded. This represents a 2.78% increase from its 52 Week Low.
Square, Inc. ( SQ ) is +1.46 at $49.52, with 334,794 shares traded., following a 52-week high recorded in prior regular session.
Xunlei Limited ( XNET ) is -0.85 at $20.61, with 279,805 shares traded., following a 52-week high recorded in prior regular session.
Gamestop Corporation ( GME ) is +0.97 at $17.70, with 252,717 shares traded. GME's current last sale is 73.75% of the target price of $24.
Deere & Company ( DE ) is +6.93 at $146.16, with 244,309 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2017. The consensus EPS forecast is $1.46. Reuters Reports: U.S. STOCKS ON THE MOVE-HP Enterprises, HP Inc, GameStop, Guess, Rand Logistics
Axalta Coating Systems Ltd. ( AXTA ) is +1.48 at $35.35, with 227,420 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017. The consensus EPS forecast is $0.33. AXTA's current last sale is 108.77% of the target price of $32.5.
Qudian Inc. ( QD ) is -0.83 at $18.48, with 209,549 shares traded., following a 52-week high recorded in prior regular session.
VelocityShares Daily 2x VIX Short-Term ETN ( TVIX ) is -0.15 at $7.28, with 204,271 shares traded., following a 52-week high recorded in prior regular session.
Micron Technology, Inc. ( MU ) is +0.38 at $49.78, with 175,054 shares traded., following a 52-week high recorded in prior regular session.
STMicroelectronics N.V. ( STM ) is -0.36 at $24.32, with 149,089 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017. The consensus EPS forecast is $0.35. As reported by Zacks, the current mean recommendation for STM is in the "buy range".
iShares MSCI ACWI Index Fund ( ACWI ) is -0.06 at $71.00, with 92,800 shares traded., following a 52-week high recorded in prior regular session.
Apple Inc. ( AAPL ) is +0.4 at $173.54, with 87,578 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017. The consensus EPS forecast is $3.75. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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 following are the most active stocks for the pre-market session : Vanguard Total International Bond ETF ( BNDX ) is unchanged at $55.05, with 816,110 shares traded. Reuters Reports: U.S. STOCKS ON THE MOVE-HP Enterprises, HP Inc, GameStop, Guess, Rand Logistics Axalta Coating Systems Ltd. ( AXTA ) is +1.48 at $35.35, with 227,420 shares traded. VelocityShares Daily 2x VIX Short-Term ETN ( TVIX ) is -0.15 at $7.28, with 204,271 shares traded., following a 52-week high recorded in prior regular session.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017. The total Pre-Market volume is currently 3,260,894 shares traded.
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Square, Inc. ( SQ ) is +1.46 at $49.52, with 334,794 shares traded., following a 52-week high recorded in prior regular session. Qudian Inc. ( QD ) is -0.83 at $18.48, with 209,549 shares traded., following a 52-week high recorded in prior regular session. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017. The total Pre-Market volume is currently 3,260,894 shares traded.
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edade106-1515-4f20-91b7-a02f9528fe1a
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722218.0
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2017-11-21 00:00:00 UTC
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Tractors Gaining Traction: Why Deere Demand Won't Get Plowed Under
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DE
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https://www.nasdaq.com/articles/tractors-gaining-traction-why-deere-demand-wont-get-plowed-under-2017-11-21
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Shares of Deere & Co. (DE) are higher on Tuesday, thanks to an upgrade from Robert W. Baird ahead of the machinery maker's earnings report tomorrow.
Getty Images
Analyst Mircea (Mig) Dobre and his team boosted their rating on the stock to Outperform and raised their target price $15 to $155. Dobre writes that the move comes after he downgraded the shares in August, on worries that another record corn crop would weigh on prices and delay a recovery in demand for agricultural equipment--throughout the quarter these fears didn't materialize, and demand in the seasonally important month of October was robust.
While low crop prices are still an issue, equipment dealers are seeing emerging replacement demand, while should bolster sales. Therefore, he writes that it's time to go back to his longer-term positive thesis, while seasonality is providing additional tailwinds into the start of next year.
More detail from the note:
The stock is up 1.1% to $138.36 in recent trading, and has gained 34.3% this year.
If the company reports strong earnings tomorrow, it could help industrials end the quarter on a high note. The Industrial Select Sector SPDR ETF (XLI) is up 0.5% today.
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 & Co. (DE) are higher on Tuesday, thanks to an upgrade from Robert W. Baird ahead of the machinery maker's earnings report tomorrow. Dobre writes that the move comes after he downgraded the shares in August, on worries that another record corn crop would weigh on prices and delay a recovery in demand for agricultural equipment--throughout the quarter these fears didn't materialize, and demand in the seasonally important month of October was robust. While low crop prices are still an issue, equipment dealers are seeing emerging replacement demand, while should bolster sales.
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Shares of Deere & Co. (DE) are higher on Tuesday, thanks to an upgrade from Robert W. Baird ahead of the machinery maker's earnings report tomorrow. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Dobre writes that the move comes after he downgraded the shares in August, on worries that another record corn crop would weigh on prices and delay a recovery in demand for agricultural equipment--throughout the quarter these fears didn't materialize, and demand in the seasonally important month of October was robust.
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Shares of Deere & Co. (DE) are higher on Tuesday, thanks to an upgrade from Robert W. Baird ahead of the machinery maker's earnings report tomorrow. Dobre writes that the move comes after he downgraded the shares in August, on worries that another record corn crop would weigh on prices and delay a recovery in demand for agricultural equipment--throughout the quarter these fears didn't materialize, and demand in the seasonally important month of October was robust. While low crop prices are still an issue, equipment dealers are seeing emerging replacement demand, while should bolster sales.
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Shares of Deere & Co. (DE) are higher on Tuesday, thanks to an upgrade from Robert W. Baird ahead of the machinery maker's earnings report tomorrow. Dobre writes that the move comes after he downgraded the shares in August, on worries that another record corn crop would weigh on prices and delay a recovery in demand for agricultural equipment--throughout the quarter these fears didn't materialize, and demand in the seasonally important month of October was robust. While low crop prices are still an issue, equipment dealers are seeing emerging replacement demand, while should bolster sales.
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722219.0
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2017-11-21 00:00:00 UTC
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Pre-Market Earnings Report for November 22, 2017 : DE, SFL, FRO, GASS, EVGN
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https://www.nasdaq.com/articles/pre-market-earnings-report-november-22-2017-de-sfl-fro-gass-evgn-2017-11-21
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The following companies are expected to report earnings prior to market open on 11/22/2017. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending October 31, 2017. The farm machinery company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.44. This value represents a 60.00% 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 3rd calendar quarter where they beat the consensus by 2.07%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 21.10 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Ship Finance International Limited ( SFL ) is reporting for the quarter ending September 30, 2017. The shipping company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.27. This value represents a 22.86% decrease compared to the same quarter last year. In the past year SFL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 7.14%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for SFL is 12.38 vs. an industry ratio of -1.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Frontline Ltd. ( FRO ) is reporting for the quarter ending September 30, 2017. The shipping company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.13. This value represents a 218.18% decrease compared to the same quarter last year. FRO missed the consensus earnings per share in the 2nd calendar quarter of 2017 by -166.67%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for FRO is -194.33 vs. an industry ratio of -1.20.
StealthGas, Inc. ( GASS ) is reporting for the quarter ending September 30, 2017. The shipping company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.06. This value represents a 200.00% increase compared to the same quarter last year. GASS missed the consensus earnings per share in the 3rd calendar quarter of 2016 by -250%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for GASS is 18.24 vs. an industry ratio of -1.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Evogene Ltd. ( EVGN ) is reporting for the quarter ending September 30, 2017. The biomedical (gene) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.19. This value represents a 5.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for EVGN is -5.16 vs. an industry ratio of -6.20, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company ( DE ) is reporting for the quarter ending October 31, 2017. In the past year DE has beat the expectations every quarter. Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 21.10 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 21.10 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company ( DE ) is reporting for the quarter ending October 31, 2017. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 21.10 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company ( DE ) is reporting for the quarter ending October 31, 2017. In the past year DE has beat the expectations every quarter.
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In the past year DE has beat the expectations every quarter. Deere & Company ( DE ) is reporting for the quarter ending October 31, 2017. Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 21.10 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry.
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722220.0
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2017-11-21 00:00:00 UTC
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After Deere, Watch This Rare Stock Pattern: Investing Action Plan
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https://www.nasdaq.com/articles/after-deere-watch-rare-stock-pattern-investing-action-plan-2017-11-21
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Here's your Investing Action Plan for Wednesday: what you need to know as an investor for the coming day.
[ibd-display-video id=2881940 width=50 float=left autostart=true]The last day before the country checks out for a long Thanksgiving weekend will have a few notable events to watch. Among earnings news, Deere 's ( DE ) is the most notable and could put shares of other heavy-equipment makers into motion. Pay particular attention to Manitowoc ( MTW ) as its stock nears a buy point. Also, the Federal Reserve will release minutes from its last meeting, and a few key economic indicators are due.
Deere
The maker of farm and construction equipment reports fiscal Q4 results before the market opens.
Estimates : EPS to jump 60% to $1.44 with revenue up 22% to $6.91 billion, according to Zacks Investment Research.
Stock : Shares closed up 1.7% at 139.23 on the stock market today , further extended beyond buying territory after breaking out of a cup-with-handle base in October. Deere has gained about 35% this year.
The company has been expanding its global reach and is benefiting from an improved political and economic climate in Latin America that's driving up sales.
Stocks To Watch
Manitowoc edged up 0.35% at 40.48, moving along a rare ascending base with a 42.22 buy point. The pattern often takes shape as a stock tries to rise during a choppy or tired market. But once a strong uptrend takes hold in the broader market, the stock has the potential to break out to new highs. However, Alibaba ( BABA ) broke out from an ascending base in September and has largely moved sideways since.
Agricultural equipment maker AGCO ( AGCO ) dipped 0.1% to 68.91, working its way through a flat base with a 75.68 entry.
Meanwhile, Terex ( TEX ) remained extended above buy range after clearing a 40.34 entry in September, and Caterpillar (CAT) is also well beyond buying territory.
IBD'S TAKE:Bylearning to use call options, investors can significantly reduce risk and capitalize on basing stocks that are making breakaway gains caused by earnings reports.
Fed, Economic Data
Minutes from the central bank's Oct. 31-Nov. 1 policy meeting will come out at 2 p.m. ET. Fed officials kept rates steady back then and offered no indication that they will veer away from another widely expected rate hike next month. But the minutes could offer hints on how aggressive policymakers will be next year as inflation remains stubbornly muted.
The Commerce Department will report October durable goods orders at 8:30 a.m., and analysts see a 0.4% monthly gain and a 0.5% increase in core capital goods orders. And a final reading on the University of Michigan consumer sentiment index for November will come out at 10 a.m., revealing the state of the shopper as holiday spending takes off. Analysts see an uptick to 98.1 vs. an initial November reading of 97.8.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And a final reading on the University of Michigan consumer sentiment index for November will come out at 10 a.m., revealing the state of the shopper as holiday spending takes off. [ibd-display-video id=2881940 width=50 float=left autostart=true]The last day before the country checks out for a long Thanksgiving weekend will have a few notable events to watch. Among earnings news, Deere 's ( DE ) is the most notable and could put shares of other heavy-equipment makers into motion.
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The Commerce Department will report October durable goods orders at 8:30 a.m., and analysts see a 0.4% monthly gain and a 0.5% increase in core capital goods orders. [ibd-display-video id=2881940 width=50 float=left autostart=true]The last day before the country checks out for a long Thanksgiving weekend will have a few notable events to watch. Among earnings news, Deere 's ( DE ) is the most notable and could put shares of other heavy-equipment makers into motion.
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Stock : Shares closed up 1.7% at 139.23 on the stock market today , further extended beyond buying territory after breaking out of a cup-with-handle base in October. [ibd-display-video id=2881940 width=50 float=left autostart=true]The last day before the country checks out for a long Thanksgiving weekend will have a few notable events to watch. Among earnings news, Deere 's ( DE ) is the most notable and could put shares of other heavy-equipment makers into motion.
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Stock : Shares closed up 1.7% at 139.23 on the stock market today , further extended beyond buying territory after breaking out of a cup-with-handle base in October. Deere has gained about 35% this year. [ibd-display-video id=2881940 width=50 float=left autostart=true]The last day before the country checks out for a long Thanksgiving weekend will have a few notable events to watch.
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722221.0
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2017-11-20 00:00:00 UTC
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Deere Q4 Earnings: What To Expect?
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DE
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https://www.nasdaq.com/articles/deere-q4-earnings-what-expect-2017-11-20
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Deere ( DE ) is scheduled to report its fourth quarter fiscal 2017 earnings on November 22. We expect the company's overall sales to increase in low double digits this quarter, primarily due to the strength in the construction industry in the last couple of quarters. Deere's profits are also likely to increase in double digits this quarter due to the expected sales growth and Deere's cost-cutting measures. The government support for infrastructure projects in China and India should continue to boost Deere's construction sales. The rebound in the North American construction industry is also likely to play a vital role in Deere's sales growth this quarter. Deere's agriculture equipment sales grew strongly last quarter, but we expect moderate growth in the segment this quarter.
Deere's Construction Equipment Sales May Gain Momentum
Deere's construction and forestry division had a strong third fiscal quarter, as its sales increased by nearly 30% and operating income doubled. The solid growth of Deere's construction equipment sales was driven by strength in the Asian construction industry, led by China. The government support for infrastructure projects continued in the third quarter of 2017 despite the slowing growth of the Chinese economy. Housing starts and government spending on infrastructure projects in the U.S. have also increased in the last couple of quarters. We expect the above factors to drive Deere's construction sales this quarter.
Agriculture Equipment Sales Growth Likely To Remain Sluggish This Quarter
Last quarter, Deere's agriculture and turf revenues grew by nearly 13% with the sales growth coming across operating regions. The increase was largely the result of solid growth from the U.S. and Canada, where sales had declined earlier due to a supply-demand mismatch. However, we do not expect significant growth for Deere's agriculture equipment this quarter. Farm incomes in North America have declined this year due to lower exports caused by high grain stocks and the record harvest in the United States. We expect Deere's agriculture sales to continue to grow this quarter, albeit at a slower rate than last quarter.
For more information, please refer to our complete analysis for Deere
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The rebound in the North American construction industry is also likely to play a vital role in Deere's sales growth this quarter. The increase was largely the result of solid growth from the U.S. and Canada, where sales had declined earlier due to a supply-demand mismatch. Farm incomes in North America have declined this year due to lower exports caused by high grain stocks and the record harvest in the United States.
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Deere's profits are also likely to increase in double digits this quarter due to the expected sales growth and Deere's cost-cutting measures. Deere's agriculture equipment sales grew strongly last quarter, but we expect moderate growth in the segment this quarter. The solid growth of Deere's construction equipment sales was driven by strength in the Asian construction industry, led by China.
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Deere's agriculture equipment sales grew strongly last quarter, but we expect moderate growth in the segment this quarter. Deere's Construction Equipment Sales May Gain Momentum Deere's construction and forestry division had a strong third fiscal quarter, as its sales increased by nearly 30% and operating income doubled. Agriculture Equipment Sales Growth Likely To Remain Sluggish This Quarter Last quarter, Deere's agriculture and turf revenues grew by nearly 13% with the sales growth coming across operating regions.
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The solid growth of Deere's construction equipment sales was driven by strength in the Asian construction industry, led by China. However, we do not expect significant growth for Deere's agriculture equipment this quarter. Deere ( DE ) is scheduled to report its fourth quarter fiscal 2017 earnings on November 22.
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2017-11-20 00:00:00 UTC
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Garmin, Fabrinet, Salesfore.com, Hewlett Packard Enterprise and Deere & Company highlighted as Zacks Bull and Bear of the Day
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https://www.nasdaq.com/articles/garmin-fabrinet-salesfore.com-hewlett-packard-enterprise-and-deere-company-highlighted-as
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For Immediate Release
Chicago, IL - November 20, 2017 - Zacks Equity Research highlights Garmin LtdGRMN as the Bull of the Day and FabrinetFN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Salesfore.comCRM , Hewlett Packard EnterpriseHPE and Deere & CompanyDE .
Here is a synopsis of all five stocks:
Bull of the Day :
Wall Street has always welcomed second chances. Once known for its in-car GPS devices, Garmin Ltd has emerged as one of the most exciting "second chances" of the year, and investors are finally starting to reward the company for its shift to wearable technology.
Founded in 1989, Garmin became a household name thanks to its affordable and reliable GPS technology, which was quickly integrated into consumer navigation devices in the early 2000s. On top of that, Garmin has always been a market leader in GPS technology for the aviation, marine, and outdoor industries.
But Garmin's management has also been proactive and forward-thinking. The company's traditional GPS units are less popular in today's smartphone-dominated world, but Garmin has successfully shifted to a wearable tech focus. Now, after another great quarter, GRMN is a Zacks Rank #1 (Strong Buy) and looking like one of the strongest stocks in the consumer gadgets space.
Latest Earnings Report
Earlier this month, Garmin reported third-quarter results of 75 cents per share, beating the Zacks Consensus Estimate of 66 cents. The company notched revenues of $743.1 million, outpacing our consensus estimate by $25 million and expanding 2.9% year-over-year.
Product line expansion and innovation remained a key component of Garmin's performance. In the quarter, the company launched the Descent dive watch, the Impact bat swing sensor, and the TXi series of touchscreen flight displays. Garmin also unveiled several new wearables and partnered with Amazon to launch Garmin Speak, a device that brings full range of Alexa skills inside car.
Gross margin for the quarter was 58.4%, up 215 basis points from the year-ago period. Solid demand drove volume in all segments except Auto, helping to lift segment gross margins on a year-over-year basis.
Bear of the Day :
OEM services company Fabrinet started 2017 strongly, but the stock has toppled since hitting new highs in February and has been unable to garner any positive momentum recently. Now, after a disappointing quarter, it could be time to ditch FN for good.
Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors.
After sluggish results in its most recent quarter led to slipping earnings estimate revisions, Fabrinet is now sitting at a Zacks Rank #5 (Strong Sell), with shares already down about 20% on the year.
Latest Earnings Results
In its most recent quarter, Fabrinet posted earnings of 75 cents per share, missing our Zacks Consensus Estimate of 80 cents per share. The company also saw revenues of $357 million, which missed our consensus estimate of $359 million.
Management also announced guidance for its upcoming fiscal period. Fabrinet now expects current-quarter earnings to fall in the range of 69 cents to 71 cents per share. Revenue is expected to be in the range of $328 million to $332 million.
In the comparable quarter last year, Fabrinet reported earnings of 91 cents per share and revenues of $351 million, so the company's projections signal some significant retraction.
Additional content:
We have already moved past the traditionally busy stretch of earnings season, but there are still several key reports to look forward to next week. So far, Q3 earnings have been strong across the board, so it will be interesting to see whether these reports will continue that trend and inspire strong trading for the remainder of the calendar year.
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 November 20.
1. Salesfore.com (CRM)
Cloud computing and customer relations giant Salesforce is scheduled to report its latest earnings results after the market closes on November 21. Salesforce has never missed the Zacks Consensus Estimate for earnings, and shares of the company are up over 56% so far this year. Nevertheless, increased competition in the cloud CRM space, as well as expensive international investments, could create new pressures this quarter.
Based on our latest consensus estimates, we expect Salesforce to report earnings of 37 cents per share and revenues of $2.65 billion, which would represent year-over-year growth of 52% and 23%, respectively. Investors will want to focus on the company's international growth, as a series of strategic partnerships and investments have made this segment the company's key growth catalyst.
2. Hewlett Packard Enterprise (HPE)
Hewlett Packard Enterprise is slated to release its latest earnings report after the bell on November 21. Things have been relatively up and down for HPE since its split from the former Hewlett-Packard Company in late-2015. Still, the company is coming off a strong earnings beat in the most recent quarter, and a recent spin-off could help improve margins.
According to our latest consensus estimates, HPE is poised to post earnings of 28 cents per share and revenues of $7.71 billion. During the third-quarter of fiscal 2017, the company sold its Software business to British firm Micro Focus, so the most important year-over-year comparison for investors to keep an eye on will be in the net margin category.
3. Deere & Company (DE)
Agricultural equipment behemoth Deere & Company is scheduled to report its latest earnings results before the market opens on November 22. Deere has met or surpassed the Zacks Consensus Estimate for earnings in 13 consecutive quarters, and the company's stock has gained more than 30% this year.
Based on our current consensus estimates, we expect DE to report earnings $1.42 per share and revenues of $6.91 billion, which would represent year-over-year growth of 58% and 22%, respectively. Typically, Deere & Company earnings reports serve as an important bellwether for the agricultural industry, and investors will anticipate more news on the company's pending acquisition of Wirtgen.
Want morestock market analysisfrom this author? Make sure to follow @Ryan_McQueeney on Twitter!
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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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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Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
Salesforce.com Inc (CRM): Free Stock Analysis Report
Fabrinet (FN): Free Stock Analysis Report
Garmin Ltd. (GRMN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
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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 addition, Zacks Equity Research provides analysis on Salesfore.comCRM , Hewlett Packard EnterpriseHPE and Deere & CompanyDE . Once known for its in-car GPS devices, Garmin Ltd has emerged as one of the most exciting "second chances" of the year, and investors are finally starting to reward the company for its shift to wearable technology. Founded in 1989, Garmin became a household name thanks to its affordable and reliable GPS technology, which was quickly integrated into consumer navigation devices in the early 2000s.
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Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Fabrinet (FN): Free Stock Analysis Report Garmin Ltd. (GRMN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on Salesfore.comCRM , Hewlett Packard EnterpriseHPE and Deere & CompanyDE . Once known for its in-car GPS devices, Garmin Ltd has emerged as one of the most exciting "second chances" of the year, and investors are finally starting to reward the company for its shift to wearable technology.
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Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Fabrinet (FN): Free Stock Analysis Report Garmin Ltd. (GRMN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on Salesfore.comCRM , Hewlett Packard EnterpriseHPE and Deere & CompanyDE . Once known for its in-car GPS devices, Garmin Ltd has emerged as one of the most exciting "second chances" of the year, and investors are finally starting to reward the company for its shift to wearable technology.
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In addition, Zacks Equity Research provides analysis on Salesfore.comCRM , Hewlett Packard EnterpriseHPE and Deere & CompanyDE . Once known for its in-car GPS devices, Garmin Ltd has emerged as one of the most exciting "second chances" of the year, and investors are finally starting to reward the company for its shift to wearable technology. Founded in 1989, Garmin became a household name thanks to its affordable and reliable GPS technology, which was quickly integrated into consumer navigation devices in the early 2000s.
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8e6ccaf1-445a-4ad9-8bc9-9860aa35e33f
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722223.0
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2017-11-20 00:00:00 UTC
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Emerson (EMR) Launches New Solutions Center in Singapore
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https://www.nasdaq.com/articles/emerson-emr-launches-new-solutions-center-in-singapore-2017-11-20
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Emerson Electric Company 's EMR business segment, Emerson Automation Solutions, recently opened a customer-focused Solutions Center at its regional headquarters in Singapore. Additionally, the company announced a collaborative project with Singapore Polytechnic for advance training of the digital workforce of the future. The move aligns with Emerson's motto of making Singapore, a hub for the delivery of Industrial Internet of Things (IoT) technologies and services for Asia Pacific's customers.
Inside The Headlines
Emerson's newly opened Solutions Center in Singapore will support the capabilities of industry's most comprehensive Industrial IoT automation platform, Emerson's Plantweb digital ecosystem. The Plantweb offering is comprised of standards-based software, hardware, intelligent devices, as well as services for securely implementing Industrial IoT-based solutions. The Solutions Center would display state-of-the-art multimedia technologies including virtual reality as well as augmented reality.
The Emerson Solutions Center consists of two built-out plant settings. The company noted that the Digital Plant in the Center highlights a scaled-down replica of a process manufacturing facility for process control and safety systems as well as new Industrial IoT technologies. The Digital Plant enables simulation processes of a typical facility like an oil refinery, power plant, or a pharmaceutical plant. Further, the Central Control Room of the Solutions Center facilitates simulations of critical manufacturing processes for process optimization.
Our Take
Emerson is poised to grow on the back of global infrastructure growth, as its core businesses hold dominant positions in markets tied to energy efficiency and infrastructure spending. Moreover, environmental regulations are driving the need for new products, adding to its strength. Going forward, Emerson believes telecommunications infrastructure demand will continue to be one of the strongest catalysts.
Presently, the company is optimistic about the prospects of its Commercial & Residential Solutions segment as it is witnessing improving trends in the U.S., Europe and Asian construction markets. The company believes this segment to on the back of a favorable outlook for global demand within its served markets. For the Automation Solutions segment, favorable trends in power and life sciences along with improving MRO spending by oil and gas customers is expected to boost growth. Going forward, Emerson has prioritized key areas of investment for each of its business segments to maximize growth.
Furthermore, the company's continuous launches of new products and technologies as well as restructuring efforts undertaken in the past few quarters are likely to benefit its results in the coming quarters. This Zacks Rank #3 (Hold) company has returned 0.7% in past six months, outperforming the industry 's gain of 0.2%.
This apart, Emerson is expected to incur high expenses related to the spinoff of Network Power, and proposed divestitures of the motors and drives as well as power generation businesses. Escalating costs, stringent competition and volatility in the capital markets also pose concern for in the near-term.
Stocks to Consider
Some better-ranked stocks from the same space include Alamo Group, Inc. ALG , Brady Corporation BRC and Deere & Company DE . While Alamo Group sports a Zacks Rank #1 (Strong Buy), Brady Corporation and Deere & Company carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Alamo Group has surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 6.1%.
Brady Corporation has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 6.0%.
Deere & Company has outpaced estimates in the preceding four quarters, with an average earnings surprise of 55.1%.
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Emerson Electric Company (EMR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alamo Group, Inc. (ALG): 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 move aligns with Emerson's motto of making Singapore, a hub for the delivery of Industrial Internet of Things (IoT) technologies and services for Asia Pacific's customers. Inside The Headlines Emerson's newly opened Solutions Center in Singapore will support the capabilities of industry's most comprehensive Industrial IoT automation platform, Emerson's Plantweb digital ecosystem. The Plantweb offering is comprised of standards-based software, hardware, intelligent devices, as well as services for securely implementing Industrial IoT-based solutions.
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Stocks to Consider Some better-ranked stocks from the same space include Alamo Group, Inc. ALG , Brady Corporation BRC and Deere & Company DE . Click to get this free report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Brady Corporation (BRC): Free Stock Analysis Report To read this article on Zacks.com click here. The move aligns with Emerson's motto of making Singapore, a hub for the delivery of Industrial Internet of Things (IoT) technologies and services for Asia Pacific's customers.
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Inside The Headlines Emerson's newly opened Solutions Center in Singapore will support the capabilities of industry's most comprehensive Industrial IoT automation platform, Emerson's Plantweb digital ecosystem. Click to get this free report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Brady Corporation (BRC): Free Stock Analysis Report To read this article on Zacks.com click here. The move aligns with Emerson's motto of making Singapore, a hub for the delivery of Industrial Internet of Things (IoT) technologies and services for Asia Pacific's customers.
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Inside The Headlines Emerson's newly opened Solutions Center in Singapore will support the capabilities of industry's most comprehensive Industrial IoT automation platform, Emerson's Plantweb digital ecosystem. Stocks to Consider Some better-ranked stocks from the same space include Alamo Group, Inc. ALG , Brady Corporation BRC and Deere & Company DE . The move aligns with Emerson's motto of making Singapore, a hub for the delivery of Industrial Internet of Things (IoT) technologies and services for Asia Pacific's customers.
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3bb29d3c-e17d-4cd0-b2b0-5a2f2b6e3690
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722224.0
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2017-11-20 00:00:00 UTC
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Why Earnings Season Could Be Great for Deere & Company (DE)
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https://www.nasdaq.com/articles/why-earnings-season-could-be-great-for-deere-company-de-2017-11-20
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Investors are always looking for stocks that are poised to beat at earnings season and Deere & CompanyDE may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Deere & Company is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings - with the most up-to-date information possible - is a pretty good indicator of some favorable trends underneath the surface for DE in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.44 per share for DE, compared to a broader Zacks Consensus Estimate of $1.43 per share. This suggests that analysts have very recently bumped up their estimates for DE, giving the stock a Zacks Earnings ESP of +0.19% heading into earnings season.
Deere & Company Price and EPS Surprise
Deere & Company Price and EPS Surprise | Deere & Company Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here ).
Given that DE has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Clearly, recent earnings estimate revisions suggest that good things are ahead for Deere & Company, and that a beat might be in the cards for the upcoming report.
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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
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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After all, analysts raising estimates right before earnings - with the most up-to-date information possible - is a pretty good indicator of some favorable trends underneath the surface for DE in this report. Clearly, recent earnings estimate revisions suggest that good things are ahead for Deere & Company, and that a beat might be in the cards for the upcoming report. Investors are always looking for stocks that are poised to beat at earnings season and Deere & CompanyDE may be one such company.
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Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Why is this Important? Clearly, recent earnings estimate revisions suggest that good things are ahead for Deere & Company, and that a beat might be in the cards for the upcoming report. 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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This suggests that analysts have very recently bumped up their estimates for DE, giving the stock a Zacks Earnings ESP of +0.19% heading into earnings season. Given that DE has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Deere & CompanyDE may be one such company.
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After all, analysts raising estimates right before earnings - with the most up-to-date information possible - is a pretty good indicator of some favorable trends underneath the surface for DE in this report. Given that DE has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Clearly, recent earnings estimate revisions suggest that good things are ahead for Deere & Company, and that a beat might be in the cards for the upcoming report.
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722225.0
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2017-11-18 00:00:00 UTC
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Deere & Co. reports earnings November 22
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https://www.nasdaq.com/articles/deere-co-reports-earnings-november-22-2017-11-18
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What's Happening
Heavy machinery maker Deere & Co. ( DE ) will report its fiscal fourth quarter results before the market opens on November 22. The consensus calls for earnings of $1.42 per share, down from $0.90 during the same period last year. The stock is up 30.7% on the year.
Technical Analysis
DE was recently trading at $135.97, just $0.72 below its 12-month high and $44.98 above its 12-month low. Technical indicators for DE are bullish and the stock is in a strong upward trend. The stock has recent support above $130.75 and recent resistance below $135.25. Of the 14 analysts who cover the stock, four rate it a "strong buy", nine rate it a "hold", and one rates it a "strong sell". DE gets a score of 72 from InvestorsObserver's Stock Score Report.
Analyst's Thoughts
Deere & Co. has been a top performing stock over the last year, and there appears to be additional upside should the company post strong quarterly results. Strength in the housing market, improvements in commodities, and President Trump's pledge to boost federal spending on infrastructure have all helped drive DE shares higher over the last year, and should continue to push the stock to new highs. In August, the company posted better than expected profits, while sales were a little below the consensus, and the stock endured a short sell off on the mixed report, before regaining its upward momentum and hitting a new record high in early November. Sentiment remains very bullish on the stock, and the street expects a solid earnings beat, with a whisper number of $1.52 versus the consensus $1.42. The strong beat has already been priced into the stock, so actual results will need to be well above the $1.42 consensus for shares to make a material move higher. Pay attention to the sales number, which could lead to some post-earnings weakness if it falls below the consensus $6.91 billion as it did last quarter. If that is the case, and earnings are higher than expected, I would use any sell off as a good buying opportunity.
Stock Only Trade
If you're looking to establish a long stock position in DE, consider buying the stock under $136.00. Sell if it falls below $122.50 or take profits if it gets to $156.50.
Bullish Trade
If you want to set up a bullish hedged trade on DE, consider a January 115/120 bull-put credit spread for a 40-cent credit. That's a potential 8.7% return (50.4% annualized*) and the stock would have to fall 11.4% to cause a problem.
Bearish Trade
If you want to take a bearish stance on DE at this time, consider a January 150/155 bear-call credit spread for a 40-cent credit. That's a potential 8.7% return (50.4% annualized*) and the stock would have to rise 10.6% 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 January $135.00 covered call. Buy DE shares (typically 100 shares, scale as appropriate), while selling the January $135.00 call for a debit of $130.40 per share. The trade has a target assigned return of 3.5%, and a target annualized return of 20.4% (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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Analyst's Thoughts Deere & Co. has been a top performing stock over the last year, and there appears to be additional upside should the company post strong quarterly results. Strength in the housing market, improvements in commodities, and President Trump's pledge to boost federal spending on infrastructure have all helped drive DE shares higher over the last year, and should continue to push the stock to new highs. What's Happening Heavy machinery maker Deere & Co. ( DE ) will report its fiscal fourth quarter results before the market opens on November 22.
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Analyst's Thoughts Deere & Co. has been a top performing stock over the last year, and there appears to be additional upside should the company post strong quarterly results. What's Happening Heavy machinery maker Deere & Co. ( DE ) will report its fiscal fourth quarter results before the market opens on November 22. Technical Analysis DE was recently trading at $135.97, just $0.72 below its 12-month high and $44.98 above its 12-month low.
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Stock Only Trade If you're looking to establish a long stock position in DE, consider buying the stock under $136.00. What's Happening Heavy machinery maker Deere & Co. ( DE ) will report its fiscal fourth quarter results before the market opens on November 22. Technical Analysis DE was recently trading at $135.97, just $0.72 below its 12-month high and $44.98 above its 12-month low.
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Analyst's Thoughts Deere & Co. has been a top performing stock over the last year, and there appears to be additional upside should the company post strong quarterly results. Bullish Trade If you want to set up a bullish hedged trade on DE, consider a January 115/120 bull-put credit spread for a 40-cent credit. What's Happening Heavy machinery maker Deere & Co. ( DE ) will report its fiscal fourth quarter results before the market opens on November 22.
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2c466569-f3e9-41aa-b417-a651a0d0bcaf
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722226.0
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2017-11-17 00:00:00 UTC
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Deere (DE) to Report Q4 Earnings: What's in the Offing?
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https://www.nasdaq.com/articles/deere-de-to-report-q4-earnings%3A-whats-in-the-offing-2017-11-17
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Deere & CompanyDE is scheduled to report fourth-quarter fiscal 2017 results before the market opens on Nov 22.
In the last quarter, the company posted earnings of $1.97 per share, beating the Zacks Consensus Estimate by more than 2%. The company's earnings have surpassed estimates in each of the trailing four quarters, recording a remarkable average positive earnings surprise of 55.1%.
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 expects its total equipment sales to be up about 10% year over year in fiscal 2017. The company projects the figure to be up 24% for the fiscal fourth quarter compared with year-ago period. This forecast includes a positive foreign-currency translation impact of nearly 1% for fiscal 2017 and 2% for the fiscal fourth quarter. According to our latest consensus estimates, Deere is projected to post net sales from equipment operations of $6.91 billion in the fourth quarter, reflecting year-over-year growth of 22.3%.
Deere expects its total equipment sales to be up about 10% year over year in fiscal 2017. The company projects the figure to be up 24% for the fiscal fourth quarter compared with year-ago period. This forecast includes a positive foreign-currency translation impact of nearly 1% for fiscal 2017 and 2% for the fiscal fourth quarter. According to our latest consensus estimates, Deere is projected to post net sales from equipment operations of $6.91 billion in the fourth quarter, reflecting year-over-year growth of 22.3%. The Zacks Consensus Estimate for earnings for the quarter is pegged at $1.42 for the fiscal fourth quarter.
For fiscal 2017, Deere anticipates net sales to increase about 11% year over year and projects net income to be roughly $2.08 billion. The Zacks Consensus Estimate for net sales is pegged at $25.7 billion and for EPS is pegged at $6.47 for fiscal 2017.
Segment wise, Deere estimates Agriculture and Turf equipment sales to rise nearly 9% in fiscal 2017, including a positive currency-translation effect of about 1%. The year-over-year increase is backed by growth in overseas markets and lower field inventories. The company also predicts global sales for Construction & Forestry equipment to be up about 15%, with no material currency-translation impact. Notably, the forecast reflects moderate economic growth worldwide.
Our consensus estimates indicate that net sales of Deere's Agriculture and Turf equipment segment will reach $5.39 billion in the fiscal fourth quarter. The Zacks Consensus Estimate for Construction & Forestry equipment sales is pegged at $1.57 billion for the to-be-reported quarter.
Also, Deere expects industry sales of tractors and combines to jump 20% in South America, on the back of improving economic and political conditions in Brazil and Argentina. Going forward, the company forecasts that grain exports will touch record levels in both Russia and Ukraine. Furthermore, agricultural economies in Latin America continue to improve with record corn and soybean production, and upbeat exports forecast for the season.
Deere expects its industry sales for agricultural equipment in the United States and Canada to be down roughly 5% in fiscal 2017 due to weakness in livestock sector and the lingering impact of low crop prices. In the EU28 region, sales will likely be flat to down 5% due to dismal commodity prices and farm income.
In addition to the above, the company's price performance has been impressive over the past year. Its shares have rallied 46.4% in a year's time, outperforming the 38.9% rally of the industry it belongs to.
Earnings Whispers
Our proven model does not conclusively show that Deere is likely to beat on earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate of $1.39 and the Zacks Consensus Estimate of $1.42, is -2.53%. 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. While this increases the predictive power of ESP, we also need to have a positive ESP to be confident about an earnings surprise.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
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:
Alamo Group Inc. ALG , with an Earnings ESP of +6.45% and a Zacks Rank #1. Its shares have gained 47.4%, year to date. You can see the complete list of today's Zacks #1 Rank stocks here .
Advanced Accelerator Applications S.A. AAAP , with an Earnings ESP of +29.09% and a Zacks Rank #1. Year to date, its shares have soared a whopping 203.6%.
Axcelis Technologies, Inc. ACLS , with an Earnings ESP of +9.35% and a Zacks Rank #1. Its shares have rallied 138.2% during the same time frame.
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Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
Advanced Accelerator Applications S.A. (AAAP): 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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According to our latest consensus estimates, Deere is projected to post net sales from equipment operations of $6.91 billion in the fourth quarter, reflecting year-over-year growth of 22.3%. This forecast includes a positive foreign-currency translation impact of nearly 1% for fiscal 2017 and 2% for the fiscal fourth quarter. Also, Deere expects industry sales of tractors and combines to jump 20% in South America, on the back of improving economic and political conditions in Brazil and Argentina.
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According to our latest consensus estimates, Deere is projected to post net sales from equipment operations of $6.91 billion in the fourth quarter, reflecting year-over-year growth of 22.3%. Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Key Factors to Consider Deere expects its total equipment sales to be up about 10% year over year in fiscal 2017. This forecast includes a positive foreign-currency translation impact of nearly 1% for fiscal 2017 and 2% for the fiscal fourth quarter.
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Deere & Company Price and EPS Surprise Deere & Company Price and EPS Surprise | Deere & Company Quote Key Factors to Consider Deere expects its total equipment sales to be up about 10% year over year in fiscal 2017. This forecast includes a positive foreign-currency translation impact of nearly 1% for fiscal 2017 and 2% for the fiscal fourth quarter. According to our latest consensus estimates, Deere is projected to post net sales from equipment operations of $6.91 billion in the fourth quarter, reflecting year-over-year growth of 22.3%.
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This forecast includes a positive foreign-currency translation impact of nearly 1% for fiscal 2017 and 2% for the fiscal fourth quarter. According to our latest consensus estimates, Deere is projected to post net sales from equipment operations of $6.91 billion in the fourth quarter, reflecting year-over-year growth of 22.3%. Deere expects its total equipment sales to be up about 10% year over year in fiscal 2017.
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722227.0
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2017-11-17 00:00:00 UTC
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Upcoming Earnings Reports to Watch: CRM, HPE, DE
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https://www.nasdaq.com/articles/upcoming-earnings-reports-watch-crm-hpe-de-2017-11-17
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We have already moved past the traditionally busy stretch of earnings season, but there are still several key reports to look forward to next week. So far, Q3 earnings have been strong across the board, so it will be interesting to see whether these reports will continue that trend and inspire strong trading for the remainder of the calendar year.
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 November 20.
Salesfore.com CRM
Cloud computing and customer relations giant Salesforce is scheduled to report its latest earnings results after the market closes on November 21. Salesforce has never missed the Zacks Consensus Estimate for earnings, and shares of the company are up over 56% so far this year. Nevertheless, increased competition in the cloud CRM space, as well as expensive international investments, could create new pressures this quarter.
Based on our latest consensus estimates, we expect Salesforce to report earnings of 37 cents per share and revenues of $2.65 billion, which would represent year-over-year growth of 52% and 23%, respectively. Investors will want to focus on the company's international growth, as a series of strategic partnerships and investments have made this segment the company's key growth catalyst.
Hewlett Packard Enterprise HPE
Hewlett Packard Enterprise is slated to release its latest earnings report after the bell on November 21. Things have been relatively up and down for HPE since its split from the former Hewlett-Packard Company in late-2015. Still, the company is coming off a strong earnings beat in the most recent quarter, and a recent spin-off could help improve margins.
According to our latest consensus estimates, HPE is poised to post earnings of 28 cents per share and revenues of $7.71 billion. During the third-quarter of fiscal 2017, the company sold its Software business to British firm Micro Focus, so the most important year-over-year comparison for investors to keep an eye on will be in the net margin category.
Deere & Company DE
Agricultural equipment behemoth Deere & Company is scheduled to report its latest earnings results before the market opens on November 22. Deere has met or surpassed the Zacks Consensus Estimate for earnings in 13 consecutive quarters, and the company's stock has gained more than 30% this year.
Based on our current consensus estimates, we expect DE to report earnings $1.42 per share and revenues of $6.91 billion, which would represent year-over-year growth of 58% and 22%, respectively. Typically, Deere & Company earnings reports serve as an important bellwether for the agricultural industry, and investors will anticipate more news on the company's pending acquisition of Wirtgen.
Want morestock market analysisfrom this author? Make sure to follow @Ryan_McQueeneyon Twitter!
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Deere & Company (DE): Free Stock Analysis Report
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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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So far, Q3 earnings have been strong across the board, so it will be interesting to see whether these reports will continue that trend and inspire strong trading for the remainder of the calendar year. 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. And today, we've made that task even easier for you.
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Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. So far, Q3 earnings have been strong across the board, so it will be interesting to see whether these reports will continue that trend and inspire strong trading for the remainder of the calendar year. 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.
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Deere & Company DE Agricultural equipment behemoth Deere & Company is scheduled to report its latest earnings results before the market opens on November 22. Typically, Deere & Company earnings reports serve as an important bellwether for the agricultural industry, and investors will anticipate more news on the company's pending acquisition of Wirtgen. Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors will want to focus on the company's international growth, as a series of strategic partnerships and investments have made this segment the company's key growth catalyst. Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. So far, Q3 earnings have been strong across the board, so it will be interesting to see whether these reports will continue that trend and inspire strong trading for the remainder of the calendar year.
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cb7221b1-78e8-460e-afb8-439399c6ab1a
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722228.0
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2017-11-16 00:00:00 UTC
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Can Caterpillar's Stock Continue to Soar?
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DE
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https://www.nasdaq.com/articles/can-caterpillars-stock-continue-soar-2017-11-16
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nan
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nan
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The nearly 48% increase in Caterpillar Inc. 's (NYSE: CAT) stock price over the past year has taken the stock up to heady-looking valuations that can only be justified if the company keeps raising earnings guidance. That kind of statement usually leads to concluding that the stock's priced to perfection and significant downside risk exists. That may well be a valid conclusion, but Caterpillar did raise guidance again on its third-quarter earnings report, and its end markets continue to strengthen. Can the stock's run continue?
Caterpillar raises guidance again
Before getting into the details, let's look at the stock's valuation in terms of enterprise value (market cap plus net debt) to earnings before interest, tax, depreciation, and amortization -- a commonly used valuation metric.
Caterpillar stock trades at a current EV/EBITDA ratio of around 19, a historically high rating. And even when you look at a forward rating of 14.5, it's still high.
CAT EV to EBITDA (Forward) data by YCharts
But here's the thing. The company continues to raise guidance, and thanks to its substantial operational leverage , meaning it can leverage sales growth into sharply increased profits and vice versa, improvements in its end markets are resulting in improved sales expectations and dramatically improved profitability -- a theme of Caterpillar's earnings in 2017.
Underlying expectations for earnings in 2017 have more than doubled since last December. Here's a look at recent guidance:
Data source: Caterpillar Inc. presentations. Revenue is in billions of U.S. dollars.
It's partly a combination of improving end markets and management's conservatism with guidance.
Caterpillar's improving end markets
Moreover, the recent third-quarter results saw broad-based improvement in Caterpillar's end markets, which are backed up by looking at the outlook from peer Deere & Company (NYSE: DE) . Although Deere's main focus is on agricultural machinery, its smaller construction and forestry segment has raised sales expectations as the year has progressed. For example, Deere's last forecast was for its financial 2017 net construction and forestry sales to increase 15%, up from a forecast of just 1% given at the start of its financial year.
Similarly, Caterpillar increased its full-year sales outlook in every equipment segment. The heavy lifting in the third quarter, in profit terms, came from the construction and resource industries segments.
Data source: Caterpillar Inc. presentations. Profit in millions of U.S. dollars. Equipment segment profit share before corporate items and eliminations.
Why it can continue
On the bullish side of the argument, Caterpillar said "the mining cycle has started to turn," which is good news for the resources segment, and the recent uptick in the price of oil is likewise good news for Caterpillar's energy and transportation segment. In addition, the construction industries segment has significant oil and gas exposure .
Quoting from CFO Brad Halverson on the third-quarter earnings call, "North America end-user demand increased primarily due to increasing activity in the oil and gas industry, including an uptick in pipeline construction, and improving residential and nonresidential construction." Also, according to Halverson, "China continues to be a bright spot and a surprise to the upside" with regard to the construction segment. Indeed, Caterpillar's earnings show how important growth in China is Caterpillar.
In addition, price realization in the third quarter -- $343 million of the overall $1.1 billion in operating profit improvement -- along with an improving profit environment, and Halverson's commentary that " dealer inventory in terms of months of sales are low based on historical levels and are lower than at the end of the second quarter," all suggest that Caterpillar sales could enjoy a boost in the near future.
Why it can't
On the other hand, there's no guarantee that oil and resources prices will continue to move higher, and most forecasters are predicting that China's real GDP growth will slow from the 6.8%-6.9% range generated in the first three quarters of 2017.Indeed, there are already signs of cooling in the fourth-quarter, with the National Bureau of Statistics data showing that the yearly growth rate in fixed asset investment in the Jan-Oct period was 7.3% compared to the yearly growth rate of 7.5% in the Jan-Sep period.
Moreover, management believes that construction machinery demand was pulled forward in China before construction activity slows in the winter. If this turns out to be an un-seasonally strong pull-forward, then Caterpillar's China sales growth might correct in the coming quarters. Meanwhile, rising resource prices, which is good overall for Caterpillar, also create some headwinds. For example, Halverson expects "higher steel costs to put pressure on material costs moving forward," something likely to pressure margin in the future.
What to do with the stock?
Given the importance of rising earnings estimates, I believe that those looking for exposure to oil and mining commodities, as well as China, are the only ones buying the stock. If you're confident in these end market drivers, then go ahead and buy the stock and wait for earnings upgrades.
However, unless you're specifically looking for these exposures, then Caterpillar's run has left the stock's valuation looking expensive on a risk/reward basis.
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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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Although Deere's main focus is on agricultural machinery, its smaller construction and forestry segment has raised sales expectations as the year has progressed. In addition, price realization in the third quarter -- $343 million of the overall $1.1 billion in operating profit improvement -- along with an improving profit environment, and Halverson's commentary that " dealer inventory in terms of months of sales are low based on historical levels and are lower than at the end of the second quarter," all suggest that Caterpillar sales could enjoy a boost in the near future. That kind of statement usually leads to concluding that the stock's priced to perfection and significant downside risk exists.
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Caterpillar's improving end markets Moreover, the recent third-quarter results saw broad-based improvement in Caterpillar's end markets, which are backed up by looking at the outlook from peer Deere & Company (NYSE: DE) . Why it can continue On the bullish side of the argument, Caterpillar said "the mining cycle has started to turn," which is good news for the resources segment, and the recent uptick in the price of oil is likewise good news for Caterpillar's energy and transportation segment. That kind of statement usually leads to concluding that the stock's priced to perfection and significant downside risk exists.
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In addition, price realization in the third quarter -- $343 million of the overall $1.1 billion in operating profit improvement -- along with an improving profit environment, and Halverson's commentary that " dealer inventory in terms of months of sales are low based on historical levels and are lower than at the end of the second quarter," all suggest that Caterpillar sales could enjoy a boost in the near future. That kind of statement usually leads to concluding that the stock's priced to perfection and significant downside risk exists. Caterpillar raises guidance again Before getting into the details, let's look at the stock's valuation in terms of enterprise value (market cap plus net debt) to earnings before interest, tax, depreciation, and amortization -- a commonly used valuation metric.
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That kind of statement usually leads to concluding that the stock's priced to perfection and significant downside risk exists. Caterpillar raises guidance again Before getting into the details, let's look at the stock's valuation in terms of enterprise value (market cap plus net debt) to earnings before interest, tax, depreciation, and amortization -- a commonly used valuation metric. Caterpillar stock trades at a current EV/EBITDA ratio of around 19, a historically high rating.
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9656b9d9-f327-4352-b0b2-01803664e3f3
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722229.0
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2017-11-13 00:00:00 UTC
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Westport Fuel Systems (WPRT) Q3 Earnings: A Beat in Store?
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DE
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https://www.nasdaq.com/articles/westport-fuel-systems-wprt-q3-earnings%3A-a-beat-in-store-2017-11-13
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nan
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Westport Fuel Systems Inc.WPRT will report third-quarter 2017 results on Nov 14, after the market closes . Last quarter, the company surpassed the Zacks Consensus Estimate by 20%.
The company has an impressive earnings history. It has surpassed the consensus mark in three of the trailing four quarters and lagged the same on one occasion. The average positive surprise in the trailing 12 months came in at 4.78%.
Let's see, how things are shaping up for this announcement.
Westport Fuel Systems Inc Price and EPS Surprise
Westport Fuel Systems Inc Price and EPS Surprise | Westport Fuel Systems Inc Quote
Why a Likely Positive Surprise?
Our proven model shows that Westport Fuel Systems is likely to beat estimates this quarter with the right combination of two key ingredients.
Zacks ESP : Westport Fuel Systems has an Earnings ESP of +25.68% as the Most Accurate estimate is pegged at a loss of 11 cents while the Zacks Consensus Estimate stands at a loss of 15 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Westport Fuel Systems carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP as stocks with a favorable Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have significantly higher chances of an earnings beat.
We caution against all Sell-rated stocks with a (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What's Driving Better-than-Expected Results?
Westport Fuel Systems regularly launches new products to boost sales. Currently, it is in process to launch commercial components of HPDI 2.0. Earlier in the first quarter of 2017, the company launched the V90 Bi-Fuel, an advanced natural gas technology.
Additionally, the company makes regular investments and acquisitions related to technologies and businesses that complement or help in commercialization of its products. The merger of Fuel Systems with Westport Fuel Systems is expected to result in savings and synergies of over $30 million annually, from 2018 onward.
The company also gains from a stronger balance sheet, better liquidity, cost-reduction initiatives, technology consolidation, a wider product portfolio as well as a large global distribution network.
Price Performance
Last three months, shares of Westport Fuel Systems have outperformed the industry it belongs to. The stock has surged 62.8% compared with the industry's 9.5% growth.
Other Stocks to Consider
Here are a few other companies worth considering from the same space with the right combination of elements to exceed expectations this quarter:
Meritor Inc. MTOR has an Earnings ESP of +4.26% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Navistar International Corporation NAV has an Earnings ESP of +24.09% and a Zacks Rank of 1.
Deere & Company DE has an Earnings ESP of +1.42% and a Zacks Rank of 2.
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Navistar International Corporation (NAV): Free Stock Analysis Report
Meritor, Inc. (MTOR): Free Stock Analysis Report
Westport Fuel Systems Inc (WPRT): 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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The company also gains from a stronger balance sheet, better liquidity, cost-reduction initiatives, technology consolidation, a wider product portfolio as well as a large global distribution network. Other Stocks to Consider Here are a few other companies worth considering from the same space with the right combination of elements to exceed expectations this quarter: Meritor Inc. MTOR has an Earnings ESP of +4.26% and a Zacks Rank #1. Our proven model shows that Westport Fuel Systems is likely to beat estimates this quarter with the right combination of two key ingredients.
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Click to get this free report Navistar International Corporation (NAV): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report Westport Fuel Systems Inc (WPRT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that Westport Fuel Systems is likely to beat estimates this quarter with the right combination of two key ingredients. The company also gains from a stronger balance sheet, better liquidity, cost-reduction initiatives, technology consolidation, a wider product portfolio as well as a large global distribution network.
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Click to get this free report Navistar International Corporation (NAV): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report Westport Fuel Systems Inc (WPRT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that Westport Fuel Systems is likely to beat estimates this quarter with the right combination of two key ingredients. The company also gains from a stronger balance sheet, better liquidity, cost-reduction initiatives, technology consolidation, a wider product portfolio as well as a large global distribution network.
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Deere & Company DE has an Earnings ESP of +1.42% and a Zacks Rank of 2. Our proven model shows that Westport Fuel Systems is likely to beat estimates this quarter with the right combination of two key ingredients. The company also gains from a stronger balance sheet, better liquidity, cost-reduction initiatives, technology consolidation, a wider product portfolio as well as a large global distribution network.
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e2add5fc-4f59-455b-ace3-c851e39f79fa
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722230.0
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2017-11-13 00:00:00 UTC
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Market Outlook- The Week that Was and the Week Ahead
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https://www.nasdaq.com/articles/market-outlook-week-was-and-week-ahead-2017-11-13
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Key Macroeconomic Data for the week ahead
Monday, 13 th November:
N/A
Tuesday, 14 th November:
China Industrial Production y/y (Oct)
German GDP q/q (Q3) Prelim
UK CPI y/y (Oct)
German ZEW Economic Sentiment (Nov)
S PPI m/m (Oct)
Wednesday, 15 th November:
Japan GDP q/q (Q3)
UK Average Earnings Index + Bonus (Sep)
UK Claimant Count Change (Oct)
S Core CPI m/m (Oct)
S Core Retail Sales m/m (Oct)
S Retail Sales m/m (Oct)
Thursday, 16 th November:
Australia Employment Change (Oct)
Eurozone CPI y/y (Oct)
Philly FED Manufacturing Index (Nov)
Friday, 17 th November:
S Building Permits (Oct)
Canada Core CPI m/m (Oct)
Currency Majors
Source Bloomberg as at 13 th November 2017
Commodities
Geo-Political Risk
Spain & UK
Germany
The key risk remains the possible threat of a new election. Progress will need to be made on Monday between the three parties for the markets to avoid a panic over the near-term.
Middle East
The markets will need to keep a close eye on the Middle East as the Saudis look to take on Lebanon and ultimately Iran. Reports have suggested that the Saudis forced the resignation of Lebanon Prime Minister Hariri and Hezbollah have accused the Saudis of declaring war on the nation. All of this started from a missile fired by Hezbollah at Riyadh the weekend prior, with the Saudis accusing Iran of having supplied the missile. Any escalation will see markets go into defensive mode, whilst oil prices would be on the rise oversupply worries.
Equities
Source Bloomberg as at 10 th November 2017
Eurozone Equities (DAX; CAC; EuroStoxx50)
Macroeconomic Data for the week ahead (Neutral)
Monday
N/A
Tuesday
German Industrial Production m/m (Sep)
German CPI m/m (Oct) Final
German GDP q/q (Q3) Prelim
German GDP y/y (Q3) Prelim
Spanish CPI y/y (Oct) Final
Spanish HICP y/y (Oct) Final
Italian CPI m/m (Oct) Final
German ZEW Current Conditions (Nov)
German ZEW Economic Sentiment (Nov)
Eurozone ZEW Economic Sentiment (Nov)
Eurozone GDP y/y (Q3) 2nd Estimate
Eurozone GDP q/q (Q3) 2nd Estimate
Eurozone Industrial Production m/m (Sep)
Wednesday
French CPI m/m (Oct) Final
French HICP m/m (Oct) Final
Eurozone Trade Balance (Sep)
Thursday
Eurozone Core CPI y/y (Oct)
Eurozone CPI m/m (Oct)
Eurozone CPI y/y (Oct)
Friday
N/A
European equities slumped in the last week, with the EuroStoxx50 and DAX each giving up 2.61% and the CAC ending the week down 2.49%, with all three being dragged into the red for the current month. The declines in the week were the worst in 3-months and there appeared to be a lack of support at the end of the week, in spite of the losses and some apparent value on offer.
The bias was down for much of the week, with earnings and the EUR the key contributors to the downside. Financial stocks took quite a beating through the week, with Commerzbank earnings weighing on the sector through the early part of the week. ECB monetary policy continues to weigh on the banking sector, with the upbeat economic momentum doing little to boost earnings, as net interest margins remain under pressure.
Commerzbank ( DE ) managed to close the week in positive territory despite the earnings miss, with the bank's anticipated turnaround this year supporting the stock.
Other gains in the sector included UniCredit Bank (UCG:MI), which closed out the week in positive territory, with BNP Paribas (BNP:FP) flat .
Gains in the EUR were limited to 0.49% for the week, but with the combined effects of poor earnings results, a stronger EUR and the shift in market sentiment towards tax reforms, profit taking was high on the agenda.
On the earnings numbers, of the 78% of companies listed on the Stoxx600, EPS growth has slowed from 26% in the first quarter of this year to 7.6% in the 3 rd . In the second quarter, EPS growth was 18%. If the markets were looking for any more negative numbers on the earnings results, only 51% of companies' earnings came in ahead of forecasts, which is the worst since the final quarter of 2015. The disappointment was attributed to exporters, where less than 50% saw earnings come in ahead of forecasts for the quarter.
On the dating front, it was a relatively quiet week. Of greatest concern for the markets would have been the fall in German industrial production in September and a decline in exports, while imports saw a larger decline leading to a widening of the trade surplus. The good news was a rise in factory orders, which suggests that September was a blip in the continued recovery.
For the markets, the EU Economic forecasts and ECB Economic Bulletin should have been positive for the equity markets, with growth for the Eurozone being revised upwards for this year and the next 2-years, particularly when factoring in the soft inflation outlook and current monetary policy environment and outlook.
Outside of Europe, other influences aside from the consensus on tax reforms included China's trade figures for October, which continued to show strong demand for goods and raw materials, with imports surging by another 17.2%. While exports rose by just 6.9%, the markets were happy with the demand side, particularly with Trump in the region, a widening in the trade surplus is quite timely.
Trump's positive summation of his meetings with Chinese Premier Xi did not go unnoticed, with any concerns of punitive trade tariffs being quashed on Thursday. The sell-off could have been considerably worse had there been talks of tariffs, especially when considering the fact that Trump had already singled out Germany as a nation benefiting from unfair trade terms.
Oil prices also gained through the week, with Brent up 2.34% to $63.52 as the markets begin to consider $80 plus levels, though the upside in crude was not enough for Total (FP:FP) to move into positive territory for the week.
Geopolitical risk certainly contributed to the gains in crude, with the Saudis looking ready to lock horns with Iran and the Hezbollah as the Shia Sunni divide begins to heat up. (See Political Risk section for more details).
The week ahead
It's a busy week ahead on the data front, with key stats out of the Eurozone certainly expected to provide the EUR with some much-needed direction, following the ECB -tapering sell-off.
While Tuesday is the big day on the stats, the Eurozone's inflation figures on Thursday will be watched closely. Draghi had recently suggested that inflation was likely to begin accelerating in the near future. Such an outcome would certainly force the markets to reconsider ECB monetary policy, with any shift a negative for the markets, particularly when considering the fact that the EUR has become a funding currency.
Data out of China will also be of relevance, with China's industrial production number of particular relevance.
The markets will need to keep an eye on the storm brewing in the Middle East, however, with any hint of a war between the two sides likely to cause a more material pullback in the equity markets and a bounce in the EUR.
In the U.S., Congress is expected to vote on the tax reform bill and how the vote goes and noise from the House of Representatives will be key to the progress of the bill. Any negative news will again be a negative for riskier assets.
UK (FTSE100)
Macroeconomic Data for the week ahead (Negative)
Monday
N/A
Tuesday
UK CPI m/m (Oct)
UK CPI y/y (Oct)
UK PPI Input m/m (Oct)
Wednesday
UK Average Earnings Index + Bonus (Sep)
UK Claimant Count Change (Oct)
UK Unemployment Rate (Sep)
Thursday
UK Core Retail Sales m/m (Oct)
UK Core Retail Sales y/y (Oct)
UK Retail Sales y/y (Oct)
UK Retail Sales m/m (Oct)
Friday
N/A
The FTSE100 slipped 1.68% through the week to hit a 6-week low last week, with a 0.91% gain the Pound certainly not helping the cause.
Economic data through the week was on the lighter side ahead of Friday's production and trade figures, leaving the markets with little to do but consider where the index has come from and where it is heading over the short to medium-term.
Such an opportunity tends to be negative, especially with the uncertainty of Brexit looming large over the UK and certainly more sensitive to the direction in the Pound.
Following Friday's manufacturing production and trade figures, which were all positive for the UK, the Pound clawed its way back to $1.32 levels for the first time since the start of the month, contributing to Friday's 0.68% decline, though the damage had already been done.
Adding to the positive sentiment towards the UK economy was the NIESR GDP estimate for 3-months to November, which forecasted 0.5% growth, accelerating from the previous month's 0.4%.
The negative for the markets was disappointing retail sales and house price figures released earlier in the week. The UK's BRC Retail Sales Monitor fell by 1% in October, falling well short of a forecasted 0.9% increase, leaving the retail sector floundering. It's going to be a tough time for the sector, with the pickup in interest rates, 3% inflation and soft wage growth weighing on consumer spending.
Next PLC (NXT) ended the week down 2.1%, with any upside from Marks & Spencer (MKS) on earnings lost by the end of the week, the stock down 2.8% for the week. If the doom and gloom is to materialize, things are only going to get tougher for the sector and holding on in hope of a rebound may be in vain.
Brexit remains a key consideration, though with Britain leaving the EU on 29 th March 2019, there's still some time before the markets need to begin searching for the panic button. See Geo-political risk section for more info.
Outside of the data, Friday's drop in oil prices pulled BP ( BP ) and Royal Dutch Shell (RDS) into the red, the pair having made solid gains through the early part of the week. Should tensions continue to rise, we would expect oil to find support over concerns of supply disruption from the region, which should be positive for the pair.
Trump's tax reform bill woes provided unnecessary support for the Pound through the second half of the week, whilst trade data out of China and Trump's visit were both considered positive.
The week ahead
Stats for the week ahead are of particular importance and could have a material influence on market sentiment towards monetary policy by the end of the week.
Inflation is expected to continue to sit at 3%, with wholesale input prices forecasted to have risen by 1.3% in October. Any uptick in inflationary pressure could see the BoE have to take more aggressive action, though this will be dependent upon the rest of the data. UK average earnings and claimant count numbers on Wednesday and retail sales figures on Thursday will need to be upbeat for there to be any chance of another near-term move.
Such a shift in sentiment would certainly see the Pound begin to make a move to $1.35 levels, which will be a negative for the FTSE100 and the multinationals in particular.
Concerns over Theresa May's position at the helm of the Tory Party will be another factor to consider through the week as Brexit negotiations resumed last Thursday.
Outside of the UK, industrial production figures out of China on Tuesday will influence market risk appetite, as will an anticipated Senate vote on the tax reform bill.
The House of Representatives is expected to be the stumbling block, so any surprise resistance in Congress will weigh heavily on the Trump rally that has inspired the markets beyond U.S borders.
The good news for the Pound will be the fact that Trump's protectionist attitudes are unlikely to hurt the UK, with the U.S president likely to take a far more lenient approach to trade talks than with the likes of Germany.
Trump's criticism of the WTO during the APEC CEO Summit hit the news over the weekend, with the U.S president continuing to complain about unfair trade agreements for the U.S
U.S Equities
Macroeconomic Data for the week ahead (Positive impact)
Monday
N/A
Tuesday
S Core PPI m/m (Oct
S PPI m/m (Oct)
Wednesday
S Core CPI m/m (Oct)
S Core CPI y/y (Oct)
S Core Retail Sales m/m (Oct)
S CPI m/m (Oct)
NY Empire State Manufacturing Index (Nov)
S Retail Sales m/m (Oct)
S Business Inventories m/m (Sep)
Thursday
S Initial Jobless Claims
S Export Price Index m/m (Oct)
S Import Price Index m/m (Oct)
Philly FED Manufacturing Index (Nov)
Philly FED Employment Index (Nov)
S Industrial Production m/m (Oct)
Friday
S Building Permits (Oct)
S Building Permits m/m (Oct)
S Housing Starts m/m (Oct)
S Housing Starts (Oct)
U.S equities joined the rest in the red last week, with the Dow and S&P500 falling 0.5% and 0.21% respectively. The NASDAQ joined the pair in the red for the week, falling 0.2%, despite managing to avoid another decline on Friday.
That's an end to the Dow's 8-week rally and the person laying claim to this year's record-breaking runs is the person contributing to the decline. Concerns over a possible delay in tax reforms until 2019 weighed heavily on the markets. The balance of power sits in the House of Representatives and, while the House is under the Republicans, there is a difference of opinion on key elements of the reform bill that could see a lengthy backward and forwards between Congress and the House. The impact of the proposed tax reforms on U.S debt have also been doing the rounds, so some tweaking is more than likely.
We will expect the markets to continue to be dictated by progress on the tax reforms and, with the U.S President back, we will expect plenty of noise on the subject.
A pickup in oil prices through the week failed to provide support and neither did some relatively upbeat earnings. Based on FactSet numbers, 73% of companies listed on the S&P500 have had better than forecasted earnings, with the tech sector being the leader in the pack.
On the data front, economic data out of the U.S was particularly light, with stats limited to September's JOLTs job openings, the weekly jobless claims figures, and November's prelim Michigan Consumer Sentiment and Expectations figures. The data was largely overshadowed by tax reform noise and, while consumer sentiment eased according to the November numbers, an upbeat economy, a tightening labor market and the prospect of tax reforms will continue to support consumer sentiment.
It was always going to be a choppy week with the lack of stats and tax reforms taking center stage and we are likely to see more of the same next week ahead of Thanksgiving. Pressure will be on to get the bill passed through and the rush could be its downfall.
Outside of the U.S, Trump's visit to Asia saw the U.S President talking down the WTO, with the talk of unfair trade agreements coming up once more in the president's speeches. Trump also said that the U.S would not be entering into any multilateral agreements such as the Trans-Pacific Pact and would instead look for bilateral agreements with countries who don't try to take advantage of the U.S.
The comments seemed to go against the tone taken with China, so the markets will have to wait and see whether the U.S administration will begin talking up the possibility of punitive tariffs once more.
The week ahead
With all the big names have released their earnings results, the focus will remain on tax reforms through the week. Expectations are for Congress to vote on the bill to the House of Representatives before Thanksgiving.
Macroeconomic data out of the U.S will also be a factor to consider, with theeconomic calendaron the busier side for the week ahead.
Inflation figures due out on Tuesday could lead to a shift in sentiment towards December's rate hike and the rate path projection for next year, which will be a consideration.
The markets need some impetus to keep the rally going and tax reforms had been expected to be the post-earnings driver. Such a void could test market appetite at such levels and lead to a correction in the more inflated sectors.
HK (Hang Seng Index) / China (CSI 300) / ASX200
Macroeconomic Data for the week ahead
Monday
N/A
Tuesday
Australia NAB Business Confidence (Oct)
China Fixed Asset Investment y/y (Oct)
China Industrial Production y/y (Oct)
Wednesday
Australia Westpac Consumer Sentiment (Nov )
Australia Wage Price Index q/q (Q3)
Thursday
S Initial Jobless Claims
Australia Employment Change (Oct)
Australia Full Employment Change (Oct)
Australia Unemployment Rate (Oct)
HK Unemployment Rate (Oct)
Friday
N/A
Asian equities continued to move northwards last week, with the CSI300 surging 2.99% and the Hang Seng and ASX200 gaining 1.81% and 1.17% respectively.
The money's in Asia and while U.S equities hover close to record highs, the Asian markets are at pre-GFC levels, with some seeing more room to run for the majors.
Following calls earlier in the week of the Nikkei likely to hit 30,000 levels in the next few years, a softer Dollar weighed on the index, with the Nikkei gaining just 0.63%. That was still better than the moves in Europe and across the Pond.
For the ASX200, the good news in the week was relatively positive trade data out of China, with China imports rising by 17.2% in October, together with a relatively upbeat RBA Statement as the RBA held rates unchanged this month.
There were no material stats to speak of, with the week ending with the release of the RBA's quarterly monetary policy statement. The monetary policy statement was less hawkish than the RBA has been in recent statements, revising down growth projections for this year, 2018 and 2019. With U.S Dollar weakness contributing and the negative sentiment towards tax reforms lingering through the Asian session on Friday, the upside in the ASX200 was limited. By the close, the index held on to 6,000 levels, with Thursday's close has been the highest since 2007.
It was a particularly strong week for the CSI300 and Hang Seng. Trump's meeting with China's premier will have certainly provided support. Concerns over punitive trade tariffs have certainly abated and the need for China to manage North Korea suggests that Trump will need to take a softer hand with China on trade and that's good news for both the Hang Seng and Chinese equities.
Data through the week was on the positive side, with trade data continuing to point to growth, whilst Hong Kong's economy grew by 3.6% in the 3 rd quarter, coming in ahead of forecasts.
The bad news is the release of numbers out of China, which showed an 8% decline in fiscal spending in October year-on-year, compared with a 1.7% increase in September. The figures suggest a possible slowdown in the economy and when considering the 6.9% increase in exports, there may be some jitters over the numbers.
For the Hang Seng, the year-to-date gains have been impressive and one does wonder how much further the index can run. Soft numbers out of China will certainly test investor spirit, the index susceptible to significant volatility.
For the CSI300 it's a different story and focus will remain on the inclusion of Chinese equities into the MSCI Emerging Markets Index, though between now and next year, data will certainly influence with investors being primarily retail at present.
The week ahead
For the week ahead there are some key stats for the markets to consider, including China's fixed asset investment and industrial production figures due out on Tuesday.
The figures will likely impact all of the majors in Asia, as China continues to be an integral part of the global economy, with regional economies becoming ever more dependent upon China.
For the ASX200, business and consumer confidence figures together with employment numbers will be key drivers. The big four banks have the largest weighting on the index and any negative stats will add pressure on the 4.
The RBA has revised downwards its growth forecasts and the markets won't want to see more weakness.
Other factors that will also influence will be news on tax reforms from the U.S, possible conflict in the Middle East and the fall in China's fiscal spending in October.
This article was originally posted on FX Empire
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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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Outside of Europe, other influences aside from the consensus on tax reforms included China's trade figures for October, which continued to show strong demand for goods and raw materials, with imports surging by another 17.2%. Economic data through the week was on the lighter side ahead of Friday's production and trade figures, leaving the markets with little to do but consider where the index has come from and where it is heading over the short to medium-term. Trump's criticism of the WTO during the APEC CEO Summit hit the news over the weekend, with the U.S president continuing to complain about unfair trade agreements for the U.S U.S Equities Macroeconomic Data for the week ahead (Positive impact) Monday
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Tuesday, 14 th November: China Industrial Production y/y (Oct) German GDP q/q (Q3) Prelim UK CPI y/y (Oct) German ZEW Economic Sentiment (Nov) S PPI m/m (Oct) Wednesday, 15 th November: Japan GDP q/q (Q3) UK Average Earnings Index + Bonus (Sep) UK Claimant Count Change (Oct) S Core CPI m/m (Oct) S Core Retail Sales m/m (Oct) S Retail Sales m/m (Oct) Thursday, 16 th November: Australia Employment Change (Oct) Eurozone CPI y/y (Oct) Philly FED Manufacturing Index (Nov) Friday, 17 th November: S Building Permits (Oct) Canada Core CPI m/m (Oct) Currency Majors Source Bloomberg as at 13 th November 2017 Commodities Geo-Political Risk Spain & UK Germany The key risk remains the possible threat of a new election. Tuesday German Industrial Production m/m (Sep) German CPI m/m (Oct) Final German GDP q/q (Q3) Prelim German GDP y/y (Q3) Prelim Spanish CPI y/y (Oct) Final Spanish HICP y/y (Oct) Final Italian CPI m/m (Oct) Final German ZEW Current Conditions (Nov) German ZEW Economic Sentiment (Nov) Eurozone ZEW Economic Sentiment (Nov) Eurozone GDP y/y (Q3) 2nd Estimate Eurozone GDP q/q (Q3) 2nd Estimate Eurozone Industrial Production m/m (Sep) Wednesday French CPI m/m (Oct) Final French HICP m/m (Oct) Final Eurozone Trade Balance (Sep) Thursday Eurozone Core CPI y/y (Oct) Eurozone CPI m/m (Oct) Eurozone CPI y/y (Oct) Friday Tuesday S Core PPI m/m (Oct S PPI m/m (Oct) Wednesday S Core CPI m/m (Oct) S Core CPI y/y (Oct) S Core Retail Sales m/m (Oct) S CPI m/m (Oct) NY Empire State Manufacturing Index (Nov) S Retail Sales m/m (Oct) S Business Inventories m/m (Sep) Thursday S Initial Jobless Claims S Export Price Index m/m (Oct) S Import Price Index m/m (Oct) Philly FED Manufacturing Index (Nov) Philly FED Employment Index (Nov) S Industrial Production m/m (Oct) Friday S Building Permits (Oct) S Building Permits m/m (Oct) S Housing Starts m/m (Oct) S Housing Starts (Oct) U.S equities joined the rest in the red last week, with the Dow and S&P500 falling 0.5% and 0.21% respectively.
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Tuesday, 14 th November: China Industrial Production y/y (Oct) German GDP q/q (Q3) Prelim UK CPI y/y (Oct) German ZEW Economic Sentiment (Nov) S PPI m/m (Oct) Wednesday, 15 th November: Japan GDP q/q (Q3) UK Average Earnings Index + Bonus (Sep) UK Claimant Count Change (Oct) S Core CPI m/m (Oct) S Core Retail Sales m/m (Oct) S Retail Sales m/m (Oct) Thursday, 16 th November: Australia Employment Change (Oct) Eurozone CPI y/y (Oct) Philly FED Manufacturing Index (Nov) Friday, 17 th November: S Building Permits (Oct) Canada Core CPI m/m (Oct) Currency Majors Source Bloomberg as at 13 th November 2017 Commodities Geo-Political Risk Spain & UK Germany The key risk remains the possible threat of a new election. Tuesday German Industrial Production m/m (Sep) German CPI m/m (Oct) Final German GDP q/q (Q3) Prelim German GDP y/y (Q3) Prelim Spanish CPI y/y (Oct) Final Spanish HICP y/y (Oct) Final Italian CPI m/m (Oct) Final German ZEW Current Conditions (Nov) German ZEW Economic Sentiment (Nov) Eurozone ZEW Economic Sentiment (Nov) Eurozone GDP y/y (Q3) 2nd Estimate Eurozone GDP q/q (Q3) 2nd Estimate Eurozone Industrial Production m/m (Sep) Wednesday French CPI m/m (Oct) Final French HICP m/m (Oct) Final Eurozone Trade Balance (Sep) Thursday Eurozone Core CPI y/y (Oct) Eurozone CPI m/m (Oct) Eurozone CPI y/y (Oct) Friday Tuesday S Core PPI m/m (Oct S PPI m/m (Oct) Wednesday S Core CPI m/m (Oct) S Core CPI y/y (Oct) S Core Retail Sales m/m (Oct) S CPI m/m (Oct) NY Empire State Manufacturing Index (Nov) S Retail Sales m/m (Oct) S Business Inventories m/m (Sep) Thursday S Initial Jobless Claims S Export Price Index m/m (Oct) S Import Price Index m/m (Oct) Philly FED Manufacturing Index (Nov) Philly FED Employment Index (Nov) S Industrial Production m/m (Oct) Friday S Building Permits (Oct) S Building Permits m/m (Oct) S Housing Starts m/m (Oct) S Housing Starts (Oct) U.S equities joined the rest in the red last week, with the Dow and S&P500 falling 0.5% and 0.21% respectively.
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The week ahead It's a busy week ahead on the data front, with key stats out of the Eurozone certainly expected to provide the EUR with some much-needed direction, following the ECB -tapering sell-off. Outside of the UK, industrial production figures out of China on Tuesday will influence market risk appetite, as will an anticipated Senate vote on the tax reform bill. Tuesday, 14 th November: China Industrial Production y/y (Oct) German GDP q/q (Q3) Prelim UK CPI y/y (Oct) German ZEW Economic Sentiment (Nov) S PPI m/m (Oct) Wednesday, 15 th November: Japan GDP q/q (Q3) UK Average Earnings Index + Bonus (Sep) UK Claimant Count Change (Oct) S Core CPI m/m (Oct) S Core Retail Sales m/m (Oct) S Retail Sales m/m (Oct) Thursday, 16 th November: Australia Employment Change (Oct) Eurozone CPI y/y (Oct) Philly FED Manufacturing Index (Nov) Friday, 17 th November: S Building Permits (Oct) Canada Core CPI m/m (Oct) Currency Majors Source Bloomberg as at 13 th November 2017 Commodities Geo-Political Risk Spain & UK Germany The key risk remains the possible threat of a new election.
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2017-11-12 00:00:00 UTC
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Why 1 of These 5 U.S. Manufacturing Stocks Lost Big in October
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https://www.nasdaq.com/articles/why-1-these-5-us-manufacturing-stocks-lost-big-october-2017-11-12
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There's a lot of talk about how U.S. manufacturing is dead, but apparently someone didn't tell Oshkosh Corporation (NYSE: OSK) . Shares of the specialty-truck maker soared almost 11% during the month in anticipation of its Halloween earnings report.
Other U.S. manufacturers didn't fare quite so well, and for at least one, October's stock market brought more tricks than treats. Here's why October was so significant for Oshkosh, as well as for The Greenbrier Companies (NYSE: GBX) , Deere & Company (NYSE: DE) , Illinois Tool Works (NYSE: ITW) , and Aerojet Rocketdyne Holdings (NYSE: AJRD) .
Oshkosh Corporation (up 10.9%)
Oshkosh Corporation reported full-year earnings from its fiscal 2017 on Oct. 31 (the company's fiscal year runs from October through September). And in the month leading up to the earnings report, the market was clearly getting excited, bidding the stock up by double digits on no significant news from the company.
Part of that enthusiasm came from the $90 billion increase in military spending Congress approved as part of the 2018 budget on Oct. 19. As a military contractor, Oshkosh could benefit from the spending increase. The company had also been steadily improving its fundamentals quarter after quarter, and investors clearly expected more of the same.
More of the same is what they got: For Q4, Oshkosh's revenue increased 11.8% year over year, with sales up across all of its segments. Operating income, net income, and earnings per share all increased significantly over the prior-year quarter. However, the market was clearly expecting more -- or else was disappointed by the company's initial 2018 guidance of $4.25 to $4.65 in adjusted EPS -- because the stock tumbled after the announcement and is down 8.4% so far in November.
Still, given Oshkosh's history of outperformance , this drop might represent a good opportunity to pick up some shares at a slight discount.
The Greenbrier Companies (up 8.4%)
The Greenbrier Companies' trajectory looks very similar to Oshkosh's: a nice run in October, with the stock up 8.4%, and then a sharp fall in early November, with shares down 7.5% so far for the month. But the reasons it happened are quite a bit different from Oshkosh's.
Greenbrier, which manufactures railroad cars, reported lackluster Q3 results in late June (like Oshkosh, Greenbrier's fiscal year runs from October through September), which caused the stock to tank. It began to rally again in late September for no apparent reason, but it continued to rise in October as the company announced that it expected to exceed its guidance of $3.45 to $3.65 in diluted earnings per share for the year.
But as the day of the earnings announcement approached, the stock dropped, possibly in anticipation that things wouldn't look so good. And indeed, on Oct. 27, the company reported annual diluted EPS of exactly $3.65 a share, along with annual revenue and net earnings that were sharply lower than the prior year, plus the issuance of $276.1 million in new debt.
Still, that's better than most analysts expected, and the company also boosted its dividend , which may be what caused its shares to jump back up before crashing right back down again in November, again on no discernible news. While Greenbrier makes railroad cars, the stock is more like a roller coaster, so investors may want to steer clear in spite of the company's decent 1.8% dividend yield.
Deere & Company and Illinois Tool Works (up 5.8%)
Although agricultural and construction equipment manufacturer Deere & Company -- better known as John Deere -- and equipment and parts manufacturer Illinois Tool Works each beat the S&P 500's 2.2% increase in October, they didn't see the big gains that Greenbrier and Oshkosh managed to register -- or the subsequent big November losses.
Illinois Tool Works' stock has been a pretty consistent outperformer , and in October, the company added another strong quarter to its string. EPS grew 14% year over year, and revenue, operating margin, and organic growth all improved. That was enough to lift shares for the second month running .
Deere doesn't report earnings until Nov. 22, but it's coming off a rough August Q2 earnings report that knocked shares down nearly 10%. Since then, the stock has clawed its way back up, buoyed perhaps by strong U.S. September manufacturing numbers. But another bad earnings report could easily knock shares back down again.
Aerojet Rocketdyne (down 9.8%)
You wouldn't think a terrible October was in store for rocket and missile propulsion system manufacturer Aerojet Rocketdyne. The stock had an impressive September, soaring 18.2% after reporting unusually strong Q2 earnings in early August.
But perhaps the company's valuation had become a bit too stratospheric for investors. The company's price-to-earnings ratio on a trailing-12-month basis had risen to an astronomical 69.8 by the end of September. By comparison, Oshkosh's P/E ratio is just under 25, and the other companies we've discussed have even lower valuations.
Whatever the reason for the decline, the market seems prescient. In early November, the company's Q3 earnings report was a disaster . It not only missed earnings expectations but also reported negative cash from operations and a declining backlog. The company's share price fell even further in response.
After its recent market drubbing, the company's P/E is down to a more reasonable 35, but that still seems lofty for a company with a checkered earnings history.
Now what
November hasn't been good for U.S. manufacturing stocks so far, and all of these companies have seen any October gains partially -- or, in the case of Greenbrier, almost completely -- erased. Investors might consider picking up shares of consistent outperformers Illinois Tool Works or Oshkosh. It would be risky to pick up shares of Deere before its upcoming earnings report, or Greenbrier or Aerojet without seeing more consistent performance.
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John Bromels has no position in any of the stocks mentioned. The Motley Fool recommends The Greenbrier Companies. 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 Greenbrier makes railroad cars, the stock is more like a roller coaster, so investors may want to steer clear in spite of the company's decent 1.8% dividend yield. There's a lot of talk about how U.S. manufacturing is dead, but apparently someone didn't tell Oshkosh Corporation (NYSE: OSK) . Here's why October was so significant for Oshkosh, as well as for The Greenbrier Companies (NYSE: GBX) , Deere & Company (NYSE: DE) , Illinois Tool Works (NYSE: ITW) , and Aerojet Rocketdyne Holdings (NYSE: AJRD) .
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Here's why October was so significant for Oshkosh, as well as for The Greenbrier Companies (NYSE: GBX) , Deere & Company (NYSE: DE) , Illinois Tool Works (NYSE: ITW) , and Aerojet Rocketdyne Holdings (NYSE: AJRD) . Deere & Company and Illinois Tool Works (up 5.8%) Although agricultural and construction equipment manufacturer Deere & Company -- better known as John Deere -- and equipment and parts manufacturer Illinois Tool Works each beat the S&P 500's 2.2% increase in October, they didn't see the big gains that Greenbrier and Oshkosh managed to register -- or the subsequent big November losses. There's a lot of talk about how U.S. manufacturing is dead, but apparently someone didn't tell Oshkosh Corporation (NYSE: OSK) .
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Here's why October was so significant for Oshkosh, as well as for The Greenbrier Companies (NYSE: GBX) , Deere & Company (NYSE: DE) , Illinois Tool Works (NYSE: ITW) , and Aerojet Rocketdyne Holdings (NYSE: AJRD) . Deere & Company and Illinois Tool Works (up 5.8%) Although agricultural and construction equipment manufacturer Deere & Company -- better known as John Deere -- and equipment and parts manufacturer Illinois Tool Works each beat the S&P 500's 2.2% increase in October, they didn't see the big gains that Greenbrier and Oshkosh managed to register -- or the subsequent big November losses. There's a lot of talk about how U.S. manufacturing is dead, but apparently someone didn't tell Oshkosh Corporation (NYSE: OSK) .
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Deere doesn't report earnings until Nov. 22, but it's coming off a rough August Q2 earnings report that knocked shares down nearly 10%. * 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! There's a lot of talk about how U.S. manufacturing is dead, but apparently someone didn't tell Oshkosh Corporation (NYSE: OSK) .
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2017-11-09 00:00:00 UTC
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Tetra Tech (TTEK) Q4 Earnings & Revenues Beat Estimates
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https://www.nasdaq.com/articles/tetra-tech-ttek-q4-earnings-revenues-beat-estimates-2017-11-09
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Tetra Tech Inc.TTEK reported fourth-quarter fiscal 2017 adjusted earnings from ongoing operations of 63 cents, beating the Zacks Consensus Estimate of 61 cents. Earnings were higher than the company's earlier guided range of 60-62 cents.
The technical services company even fared better year over year, with adjusted earnings reflecting growth of 6.8% relative to the prior-year quarter's tally of 59 cents. The company's earnings benefited from a strong top-line growth on the back of solid demand for its high-end water, environment and infrastructure services.
For fiscal 2017, the company's ongoing earnings per share came in at $2.13, marginally higher than the guided range of $2.10-$2.12 and up a robust 13% from the year-ago tally, driven by impressive sales performance.
Inside the Headlines
Net revenues rose 0.6% year over year to $534 million, comfortably beating the Zacks Consensus Estimate of $518.5 million. Moreover, the figure surpassed the company's estimated range of $500-520 million.
Tetra Tech's ongoing revenues grew 2.3% year over year.
For fiscal 2017, the company's net revenues came in at a record $2.03 billion, up 5.8% over the prior year and higher than the guided range of $2-$2.02 billion. Additionally, revenues from ongoing operations rose 8% to $2.74 billion on a year-over-year basis.
Coming to the segments, Water, Environment and Infrastructure revenues grew 8.7% year over year to $235.1 million. This segment mainly gained from strong infrastructure and environmental projects.
Net revenue from Resource Management and Energy dipped 3.8% year over year to $298 million. International development projects contributed to sales growth, which was more than offset by sluggish oil and gas markets.
Tetra Tech, Inc. Price, Consensus and EPS Surprise
Tetra Tech, Inc. Price, Consensus and EPS Surprise | Tetra Tech, Inc. Quote
In the quarter under review, backlog from ongoing operations reached a record high of $2.54 billion, a jump of 8% year over year, driven by a number of single-award contracts. Also, ongoing operating income was up 9.4% year over year to $57 million. This is the seventh consecutive quarter of backlog growth for the company.
Significant Developments
During the quarter, Tetra Tech clinched a five-year $356 million single-award engineering and technical support services contract with the Federal Aviation Administration ("FAA"). Per the Navigation Technical Assistance Contract II ("NAVTAC II"), the company will offer technical support services for research, planning, implementation, maintenance as well as decommissioning of the FAA's landing, navigation and lighting systems.
This apart, during the reported quarter, the company acquired leading sustainable infrastructure design firm, Glumac, which would broaden the company's high-end sustainable infrastructure design capabilities. The acquisition will enable Tetra Tech to offer additional technically-differentiated green infrastructure capabilities which will help its clients conserve resources and optimize operating costs.
Liquidity & Cash Flow
At the end of the quarter on Oct 1, 2017, Tetra Tech's cash and cash equivalents were $190 million, up from $160.5 million a year ago. Long-term debt was $341.3 million, substantially up from $331.5 million as of Oct 2, 2016.
For fiscal 2017, net cash from operating activities fell 2.8% year over year to $138 million.
Share Repurchase
Tetra Tech is strongly committed toward rewarding its shareholders through dividends and share buyback programs. On Nov 6, 2017, the company declared a quarterly dividend of 10 cents per share payable on Dec 15, 2017, to stockholders of record as of Nov 30.
Currently, Tetra Tech has $100 million remaining under the previously approved $200 million share repurchase program.
Business Segment Restructuring
The company announced that it is renaming its reportable segments to align its operations better, effective from the beginning of fiscal 2018. The new Government Services Group ("GSG") segment will encompass operations with U.S. government clients (federal, state and local) and all activities with development agencies. The other segment, Commercial/International Services Group ("CIG"), will include activities with U.S. commercial clients and all international activities excluding work performed for development agencies.
Outlook
Concurrent with the quarterly earnings release, Tetra Tech provided top and bottom-line guidance for both the upcoming quarter and fiscal 2018. The company expects first-quarter fiscal 2018 earnings per share to be in the range of 50-55 cents. Net revenue for the fiscal first quarter is expected to lie within $500-$525 million.
For fiscal 2018, Tetra Tech projects earnings per share to be in the range of $2.20-$2.40 and net revenue lie within $2.05-$2.15 billion.
Our Take
Tetra Tech ended the quarter on a high note, with impressive top and bottom-line performance and sturdy year-over-year growth. Going forward, the company's robust backlog levels signal bright days ahead. Based on continued execution of its business model, Tetra Tech remains bullish about its growth across all four client sectors, namely, U.S. federal, U.S. state and local, the U.S. commercial work and finally international.
The company believes that the solid pipeline of projects in the Department of Defense and development-related services, in the United States will continue to propel growth of its federal business. Going forward, we believe Tetra Tech has a solid base for future growth, driven by its strong backlog levels, plus a robust pipeline with major government organizations like the U.S. Department of State, U.S. Army Corp. of Engineers and U.S. Air Force awarding it billion-dollar deals.
However, demand for the company's services is cyclical, and vulnerable to economic downturns and reductions in the government and private industry spending.
Tetra Tech currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks worth considering in the same space include Alamo Group, Inc. ALG , Avery Dennison Corporation AVY and Deere & Company DE . While Alamo Group sports a Zacks Rank #1 (Strong Buy), Avery Dennison and Deere & Company carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Alamo Group has a decent earnings surprise history, surpassing estimates twice in the trailing four quarters with an average beat of 6.1%.
Avery Dennison has an impressive earnings surprise history, exceeding estimates in the trailing four quarters with an average beat of 6.9%.
Deere & Company has an excellent earnings surprise history, exceeding estimates in the trailing four quarters with an average beat of 55.1%.
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Tetra Tech, Inc. (TTEK): 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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Significant Developments During the quarter, Tetra Tech clinched a five-year $356 million single-award engineering and technical support services contract with the Federal Aviation Administration ("FAA"). Based on continued execution of its business model, Tetra Tech remains bullish about its growth across all four client sectors, namely, U.S. federal, U.S. state and local, the U.S. commercial work and finally international. Going forward, we believe Tetra Tech has a solid base for future growth, driven by its strong backlog levels, plus a robust pipeline with major government organizations like the U.S. Department of State, U.S. Army Corp. of Engineers and U.S. Air Force awarding it billion-dollar deals.
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Tetra Tech, Inc. Price, Consensus and EPS Surprise Tetra Tech, Inc. Price, Consensus and EPS Surprise | Tetra Tech, Inc. Quote In the quarter under review, backlog from ongoing operations reached a record high of $2.54 billion, a jump of 8% year over year, driven by a number of single-award contracts. While Alamo Group sports a Zacks Rank #1 (Strong Buy), Avery Dennison and Deere & Company carry a Zacks Rank #2 (Buy). Click to get this free report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here.
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Tetra Tech, Inc. Price, Consensus and EPS Surprise Tetra Tech, Inc. Price, Consensus and EPS Surprise | Tetra Tech, Inc. Quote In the quarter under review, backlog from ongoing operations reached a record high of $2.54 billion, a jump of 8% year over year, driven by a number of single-award contracts. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Alamo Group, Inc. (ALG): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings were higher than the company's earlier guided range of 60-62 cents.
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Inside the Headlines Net revenues rose 0.6% year over year to $534 million, comfortably beating the Zacks Consensus Estimate of $518.5 million. Earnings were higher than the company's earlier guided range of 60-62 cents. The company's earnings benefited from a strong top-line growth on the back of solid demand for its high-end water, environment and infrastructure services.
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722233.0
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2017-11-09 00:00:00 UTC
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Notable Thursday Option Activity: DE, COST, WYNN
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DE
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https://www.nasdaq.com/articles/notable-thursday-option-activity-de-cost-wynn-2017-11-09
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 10,087 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 57.3% of DE's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $110 strike put option expiring January 19, 2018 , with 2,589 contracts trading so far today, representing approximately 258,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $110 strike highlighted in orange:
Costco Wholesale Corp (Symbol: COST) options are showing a volume of 14,460 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 49.1% of COST's average daily trading volume over the past month, of 2.9 million shares. Particularly high volume was seen for the $180 strike call option expiring December 15, 2017 , with 2,834 contracts trading so far today, representing approximately 283,400 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $180 strike highlighted in orange:
And Wynn Resorts Ltd (Symbol: WYNN) saw options trading volume of 9,043 contracts, representing approximately 904,300 underlying shares or approximately 48.9% of WYNN's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $155 strike call option expiring November 10, 2017 , with 721 contracts trading so far today, representing approximately 72,100 underlying shares of WYNN. Below is a chart showing WYNN's trailing twelve month trading history, with the $155 strike highlighted in orange:
For the various different available expirations for DE options , COST options , or WYNN 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 $110 strike put option expiring January 19, 2018 , with 2,589 contracts trading so far today, representing approximately 258,900 underlying shares of DE. Particularly high volume was seen for the $180 strike call option expiring December 15, 2017 , with 2,834 contracts trading so far today, representing approximately 283,400 underlying shares of COST. Especially high volume was seen for the $155 strike call option expiring November 10, 2017 , with 721 contracts trading so far today, representing approximately 72,100 underlying shares of WYNN.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 10,087 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $110 strike highlighted in orange: Costco Wholesale Corp (Symbol: COST) options are showing a volume of 14,460 contracts thus far today. Below is a chart showing COST's trailing twelve month trading history, with the $180 strike highlighted in orange: And Wynn Resorts Ltd (Symbol: WYNN) saw options trading volume of 9,043 contracts, representing approximately 904,300 underlying shares or approximately 48.9% of WYNN'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 S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 10,087 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 49.1% of COST's average daily trading volume over the past month, of 2.9 million shares. Below is a chart showing COST's trailing twelve month trading history, with the $180 strike highlighted in orange: And Wynn Resorts Ltd (Symbol: WYNN) saw options trading volume of 9,043 contracts, representing approximately 904,300 underlying shares or approximately 48.9% of WYNN'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 S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 10,087 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $180 strike call option expiring December 15, 2017 , with 2,834 contracts trading so far today, representing approximately 283,400 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $180 strike highlighted in orange: And Wynn Resorts Ltd (Symbol: WYNN) saw options trading volume of 9,043 contracts, representing approximately 904,300 underlying shares or approximately 48.9% of WYNN's average daily trading volume over the past month, of 1.9 million shares.
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e9e09a32-a030-44f6-b291-691b2e434653
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722234.0
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2017-11-08 00:00:00 UTC
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7 Large-Cap Stocks With a Potential Financial Dark Side
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DE
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https://www.nasdaq.com/articles/7-large-cap-stocks-with-a-potential-financial-dark-side-2017-11-08
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Everyone loves large-cap stocks.
They give us so much pleasure when they're rising in value - something they've done the last nine years, since the latest bull market began in March 2009.
The success of large-cap stocks is literally part of our personal financial satisfaction .
The American Institute of CPAs (AICPA) keeps track of a bunch of data that measures both our financial pleasure and financial pain. Combining the Personal Financial Pleasure Index with the Personal Financial Pain Index, AICPA creates what's called the Personal Financial Satisfaction Index (PFSi) using four equally weighted factors for each sub-index.
One of the factors it uses to measure pleasure is the PFS 750 Market Index, a proprietary stock index with 750 of the largest U.S.-listed companies excluding ADRs. In the third quarter ended Sept. 30, the index gained 10.2% , contributing in a big way to the PFSi setting a 24-year record.
As I said, Americans love their large-cap stocks.
However, as companies get bigger, they tend to get bloated with all kinds of assets that can come back to bite you in the keister if you're not paying close enough attention.
The 10 Best Growth Stocks You Can Buy Now
A big thing for many large-cap stocks is to create financial subsidiaries to make money lending to their customers. Sometimes it works, and sometimes it doesn't. The important thing is to understand there exists a potential financial dark side.
These seven large-cap stocks are at the top of the list.
Large-Cap Stocks With a Financial Dark Side: Apple (AAPL)
Source: Beni Krausz via Unsplash
An article in The Economist made me revisit the idea of the financial subsidiary. Apparently, Apple Inc. (NASDAQ: AAPL ) has a financial arm that's half the size of Goldman Sachs Group Inc (NYSE: GS ). That's no tiny endeavor.
Not an official Apple operating segment - neither is the retail business and I consider that the real reason for the company's growth - the magazine cobbled together all of the company's financial activities into one bucket dubbed "Apple Capital."
Apple Capital, the magazine suggests, has $262 billion in assets, $108 billion in debt and has traded more than $1.6 trillion in securities since 2011, keeping Apple CFO Luca Maestri very busy.
One paragraph of The Economist's excellent article sticks out for me.
"Apple Capital has grown in a forgiving period for financial markets. That won't last. Over time, the risk of mission creep will rise, as will the temptation to invest in riskier assets," stated the Economist October 28. "On the current trajectory, by 2022 its assets will reach $400bn and debts $250bn. By then financial regulators, who do not supervise Apple, will be grinding their teeth at night."
So, the next time you boast about owning Apple, just remember that a dark side lurks just below the surface.
Large-Cap Stocks With a Financial Dark Side: Volkswagen AG (VLKAY)
Source: Jan Kalab via Flickr
We're not that far removed from the diesel scandal that almost brought down Volkswagen AG (ADR) (OTCMKTS: VLKAY ) in 2015. Sales are starting to rebound in the U.S. - up 33% in September 2017 over the same month a year earlier and 12% in October 2017 - and that's got Volkswagen's financial services division cranking out the loans.
According to the Financial Times , VW Financial Services has $151 billion in customer receivables on its balance sheet, up almost 50% in the last five years alone.
"There are worries that rising interest rates will expose gung-ho lending and delinquencies will rise. Falling used car prices could trigger writedowns against expected residual values," wrote Jonathan Eley in early July.
But before we sound the alarm, it's important to note that loss allowances during the worst part of the 2008-2009 global economic crisis never went higher than 2.5% of receivables, which translates to $4 billion in losses given the $151 billion in receivables outstanding.
10 Losers That Will Be 2018's Best Stocks to Buy
Next time you're looking at the financial statements of Detroit's big three, you might want to have a look at their financial arms. Everything's rosy until it's not.
Large-Cap Stocks With a Financial Dark Side: Snap-on (SNA)
Source: Snap-On via Wikimedia (Modified)
You tend to see financial divisions in businesses that have expensive products such as cars, computers and, in the case of Snap-on Incorporated (NYSE: SNA ), tools and diagnostic equipment used by automotive repair shops.
If you're entering the automotive repair business and you need to invest in new equipment, who are you going to buy from? The company that provides financing or the one that doesn't? That's why it's rare to find companies in industries like Snap-on's that don't have some financial arrangement for their customers.
In late summer I recommended Snap-on's stock to InvestorPlace readers. In it, I discussed the delinquency rate of Snap-on customers - those 60-plus days late - and concluded that although the 1.4% rate for U.S. customers, who account for 89% of Snap-on's overall revenue, was something to keep an eye on, it wasn't a red flag.
In its Q3 2017 conference call, CFO Aldo Pagliari pointed out that its 60-plus day delinquency rate for extended credit increased 30 basis points to 1.7%, about ten basis points higher than usual.
However, that didn't stop the profits, which were 10.7% higher than a year earlier and 2.6% higher than in the second quarter.
Bottom line, the financial services segment through the first three quarters of the year generated $233.5 million in revenue and $163.1 million in operating profits from $1.9 billion in receivables.
That's a return of 8.6% on the $1.9 billion outstanding.
Like Volkswagen, higher interest rates could become a problem for Snap-on, but that said, a repair shop's not going to be delinquent for more than 90 days if they want to keep the lights on and the business running.
You can get along without a car, but if your business is all about the tools to repair those vehicles, it's the last thing you stop paying.
Large-Cap Stocks With a Financial Dark Side: Conn's (CONN)
Source: Mike Kalasnik via Flickr
If you've owned Conn's Inc (NASDAQ: CONN ) stock since Christmas 2013, you've been on quite a ride. Closing out the 2013 holiday shopping season just shy of $80, the furniture, electronics and home appliance retailer was sitting on top of the world.
Then its business started to slow after several years of booming revenues and profits. That in itself wouldn't have been a big deal; all retailers go through these same-store sales declines from time to time.
No, what got it in trouble was the fact that 77% of its customers were buying the products on credit supplied by the company's in-house credit operation. To make matters worse, Conn's was lending to people with mediocre credit scores and not taking the proper allowances for loan losses.
Translation: They were making more money than they should have and as we know, earnings drive share prices.
Conn's considered selling its loan portfolio but ultimately chose not to. In the second quarter ended July 31, 93.6% of its customers financed their purchases, a big chunk using the company's in-house financing. The number of customers 60-plus days past due is 10.4%. By comparison, Snap-on's 60-plus days past due I referenced earlier is one-fifth that percentage.
5 Blue-Chip Stocks to Buy for November
Today, CONN stock sits near a 52-week high of $32.90 on the back of an average credit score of 589 and an average income of $42,300.
I don't know about you, but that's not the kind of financial stability I'm looking for in an investment.
Large-Cap Stocks With a Financial Dark Side: John Deere (DE)
Source: Ford8n via Flickr (Modified)
Here is another example of a stock that's trading at or near its 52-week high riding on the back of financed equipment sales.
A July article from the Wall Street Journal highlighted the move by American farmers away from traditional banks into the open arms of Deere & Company (NYSE: DE ) and its financial arm.
"Farmers are getting by with loans and leases from John Deere, even though their incomes are half what they were a few years ago and their debt is near the levels of the 1980s bust," statesWSJ'sFacebook Inc (NASDAQ: FB ) lead into the article.
So, if you own DE stock, how aware are you that Deere has become the local pusher?
At the end of July, Deere had $28.6 billion in financing receivables outstanding after $189 million in allowances for loan losses. Of those receivables, $216 million is 60-plus days past due, a delinquency rate of 0.76%.
All's good, you say to yourself? No so fast.
In Q2 2012, Deere had $22.6 billion in financing receivables, which translates to annual growth of 4.8% over the past five years. At the same time, receivables 60-plus days late had a delinquency rate of 0.5%, or 34% lower than it is today.
Over the same five years, revenues declined by 4% annually.
Deere's profits have been fueled almost entirely by its financial arm. That's not the makings of a strong business model.
Large-Cap Stocks With a Financial Dark Side: Harley-Davidson (HOG)
Source: Crysis Rubel via Flickr (Modified)
Like Deere, Harley-Davidson Inc (NYSE: HOG ) is going through a rough patch, experiencing declining sales. In the third quarter ended Sept. 24, all five of its operating regions saw unit sales decrease including an 8.1% decline in the U.S., its biggest region accounting for 65% of its overall sales. On a dollar basis revenues decreased by 9.6% in the quarter to $1.2 billion.
Harley's financial services arm managed to make a terrible quarterly operating profit of $19.6 million from the sale of motorcycles look a little better overall.
In Q2 2017, financial services generated a $77.1 million operating profit from $189.1 million in revenue, up 11.0% and 3.2% respectively.
Unlike Deere, which is trading near a 52-week high, HOG is trading near a 52-week low and not too far from a five-year low.
Harley Davidson's finance receivables at the end of the third quarter were $7.1 billion. In the previous quarter they were $7.3 billion with $194 million in loan allowances. The 30-day delinquency rate in the second quarter was 3.25%. By comparison, Deere's 30-day delinquencies are less than one-third that percentage.
7 Best Dividend Funds for Retirement
If you're thinking about buying HOG stock, you might want to consider this before doing so.
Large-Cap Stocks With a Financial Dark Side: Boeing (BA)
Source: Phillip Capper via Flickr
What would a story about the financial dark side of large-cap stocks be without including Boeing Co (NYSE: BA ), whose recent misdeeds surrounding Bombardier Inc (OTCMKTS: BDRAF ), warrants a closer look at its financial arm.
Boeing Capital, the aircraft manufacturer's finance arm, is a surprisingly small part of the company's overall business.
I don't spend a lot of time following the aircraft manufacturing industry, but I would imagine most airlines finance their aircraft purchases through other asset-backed finance organizations not related to Boeing or lease the aircraft through companies such as AerCap Holdings N.V. (NYSE: AER ).
Thus, the fact that Boeing's customer financing at the end of September amounted to just $3.5 billion , a pittance for a company with total assets of $91 billion, it's not surprising that you rarely hear about its financial arm.
I guess when you get as much government pork as Boeing does, you don't need to provide financing for your customers to goose sales.
Move on, nothing to see here.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.
The post 7 Large-Cap Stocks With a Potential Financial Dark Side 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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"Farmers are getting by with loans and leases from John Deere, even though their incomes are half what they were a few years ago and their debt is near the levels of the 1980s bust," statesWSJ'sFacebook Inc (NASDAQ: FB ) lead into the article. Combining the Personal Financial Pleasure Index with the Personal Financial Pain Index, AICPA creates what's called the Personal Financial Satisfaction Index (PFSi) using four equally weighted factors for each sub-index. One of the factors it uses to measure pleasure is the PFS 750 Market Index, a proprietary stock index with 750 of the largest U.S.-listed companies excluding ADRs.
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Combining the Personal Financial Pleasure Index with the Personal Financial Pain Index, AICPA creates what's called the Personal Financial Satisfaction Index (PFSi) using four equally weighted factors for each sub-index. Large-Cap Stocks With a Financial Dark Side: Conn's (CONN) Source: Mike Kalasnik via Flickr If you've owned Conn's Inc (NASDAQ: CONN ) stock since Christmas 2013, you've been on quite a ride. Large-Cap Stocks With a Financial Dark Side: Harley-Davidson (HOG) Source: Crysis Rubel via Flickr (Modified) Like Deere, Harley-Davidson Inc (NYSE: HOG ) is going through a rough patch, experiencing declining sales.
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Large-Cap Stocks With a Financial Dark Side: Snap-on (SNA) Source: Snap-On via Wikimedia (Modified) You tend to see financial divisions in businesses that have expensive products such as cars, computers and, in the case of Snap-on Incorporated (NYSE: SNA ), tools and diagnostic equipment used by automotive repair shops. Large-Cap Stocks With a Financial Dark Side: John Deere (DE) Source: Ford8n via Flickr (Modified) Here is another example of a stock that's trading at or near its 52-week high riding on the back of financed equipment sales. Large-Cap Stocks With a Financial Dark Side: Boeing (BA) Source: Phillip Capper via Flickr What would a story about the financial dark side of large-cap stocks be without including Boeing Co (NYSE: BA ), whose recent misdeeds surrounding Bombardier Inc (OTCMKTS: BDRAF ), warrants a closer look at its financial arm.
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Large-Cap Stocks With a Financial Dark Side: John Deere (DE) Source: Ford8n via Flickr (Modified) Here is another example of a stock that's trading at or near its 52-week high riding on the back of financed equipment sales. A July article from the Wall Street Journal highlighted the move by American farmers away from traditional banks into the open arms of Deere & Company (NYSE: DE ) and its financial arm. Combining the Personal Financial Pleasure Index with the Personal Financial Pain Index, AICPA creates what's called the Personal Financial Satisfaction Index (PFSi) using four equally weighted factors for each sub-index.
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1eba9101-9dfb-4af6-988a-d4f04191f0e4
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722235.0
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2017-11-07 00:00:00 UTC
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First Eagle Trims American Express, Time Warner, PepsiCo
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DE
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https://www.nasdaq.com/articles/first-eagle-trims-american-express-time-warner-pepsico-2017-11-07
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First Eagle Investment ( Trades , Portfolio ) manages about $110 billion in assets for institutional and individual clients; during the third quarter the fund sold shares in the following stocks:
American Express Co. ( AXP ) was reduced by 20.82% impacting the portfolio by -0.69%.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The return on equity (ROE) of 22.16% and return on assets (ROA) of 2.94% are outperforming 56% of the companies in the Global Credit Services industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.51 is below the industry median of 2.52.
The largest shareholder among the guru is Warren Buffett (Trades, Portfolio) with 17.47% of outstanding shares followed by Dodge & Cox with 3.19% and Barrow, Hanley, Mewhinney & Strauss with 1.92%.
The Time Warner Inc. ( TWX ) holding was almost closed after a cut of 99.42%. The transaction had an impact of -0.62% on the portfolio.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 16.31% and ROA of 6.25% are outperforming 75% of the companies in the Global Media - Diversified industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.11 is below the industry median of 1.47.
Dodge & Cox is the largest shareholder among the gurus with 3.88% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 0.53%, Pioneer Investments (Trades, Portfolio) with 0.51% and Daniel Loeb (Trades, Portfolio) with 0.48%.
PepsiCo Inc. ( PEP )'s position was cut by 64.85%; the transaction had an impact of -0.52% on the portfolio.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 56.96% and ROA of 9.22% are outperforming 74% of the companies in the Global Beverages - Soft Drinks industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.47 is below the industry median of 0.86.
Donald Yacktman (Trades, Portfolio) is the largest shareholder among the gurus, with 0.56% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.41%, Jim Simons (Trades, Portfolio) with 0.4% and Pioneer Investments with 0.32%.
The guru's holding of Zoetis Inc. ( ZTS ) was closed with an impact of -0.5% on the portfolio.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 55.87% and ROA of 11.68% are outperforming 81% of the companies in the Global Drug Manufacturers - Specialty and Generic industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.35 is below the industry median of 2.89.
The largest shareholder of the company among the gurus is Simons with 0.35% of outstanding shares followed by Pioneer Investments with 0.29%, George Soros (Trades, Portfolio) with 0.14% and Mario Gabelli (Trades, Portfolio) with 0.1%.
The guru cut its Deere & Co. ( DE ) position by 18.60%. The trade had an impact of -0.36% on the portfolio.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 25.96% and ROA of 3.27% are outperforming 54% of the companies in the Global Farm & Construction Equipment industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.57.
Andreas Halvorsen (Trades, Portfolio) is the largest shareholder among the gurus with 2.98% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 1.74% and First Eagle Investment with 1.64%.
The Madison Square Garden Co. Class A( MSG) stake was reduced by 80.09% impacting the portfolio by -0.34%.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -2.90% and ROA of -2.02% are underperforming 80% of the companies in the Global Leisure industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 11.74 is above the industry median of 0.66.
The largest shareholder among the gurus is Gabelli with 3.76% of outstanding shares followed by John Rogers (Trades, Portfolio) with 1.69% and Ron Baron (Trades, Portfolio) with 1.06%.
The guru's holding of The Estee Lauder Companies Inc. Class A ( EL ) was curbed by 63.43 %. The trade had an impact of -0. 29 % on the portfolio.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 33.41% and ROA of 12.39% are outperforming 85% of the companies in the Global Household & Personal Products industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.46 is below the industry median of 0.63.
Spiros Segalas (Trades, Portfolio) is the largest shareholder among the gurus with 0.3% of outstanding shares followed by First Eagle Investment with 0.19% and Joel Greenblatt (Trades, Portfolio) with 0.09%.
The CSX Corp. (CSX)'s position was closed, impacting the portfolio by -0.28%.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 15.57% and ROA of 5.05% are outperforming 71% of the companies in the Global Railroads industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.06 is below the industry median of 0.34.
The largest shareholder among the gurus is Steve Mandel (Trades, Portfolio) with 1.15% of outstanding shares followed by John Griffin (Trades, Portfolio) with 0.52% and PRIMECAP Management with 0.52%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
Premium Members
This article first appeared on GuruFocus .
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 largest shareholder among the guru is Warren Buffett (Trades, Portfolio) with 17.47% of outstanding shares followed by Dodge & Cox with 3.19% and Barrow, Hanley, Mewhinney & Strauss with 1.92%. First Eagle Investment ( Trades , Portfolio ) manages about $110 billion in assets for institutional and individual clients; during the third quarter the fund sold shares in the following stocks: American Express Co. ( AXP ) was reduced by 20.82% impacting the portfolio by -0.69%. The cash-debt ratio of 0.51 is below the industry median of 2.52.
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The largest shareholder of the company among the gurus is Simons with 0.35% of outstanding shares followed by Pioneer Investments with 0.29%, George Soros (Trades, Portfolio) with 0.14% and Mario Gabelli (Trades, Portfolio) with 0.1%. Andreas Halvorsen (Trades, Portfolio) is the largest shareholder among the gurus with 2.98% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 1.74% and First Eagle Investment with 1.64%. The largest shareholder among the gurus is Steve Mandel (Trades, Portfolio) with 1.15% of outstanding shares followed by John Griffin (Trades, Portfolio) with 0.52% and PRIMECAP Management with 0.52%.
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Dodge & Cox is the largest shareholder among the gurus with 3.88% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 0.53%, Pioneer Investments (Trades, Portfolio) with 0.51% and Daniel Loeb (Trades, Portfolio) with 0.48%. Donald Yacktman (Trades, Portfolio) is the largest shareholder among the gurus, with 0.56% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.41%, Jim Simons (Trades, Portfolio) with 0.4% and Pioneer Investments with 0.32%. The largest shareholder of the company among the gurus is Simons with 0.35% of outstanding shares followed by Pioneer Investments with 0.29%, George Soros (Trades, Portfolio) with 0.14% and Mario Gabelli (Trades, Portfolio) with 0.1%.
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The trade had an impact of -0.36% on the portfolio. The trade had an impact of -0. First Eagle Investment ( Trades , Portfolio ) manages about $110 billion in assets for institutional and individual clients; during the third quarter the fund sold shares in the following stocks: American Express Co. ( AXP ) was reduced by 20.82% impacting the portfolio by -0.69%.
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722236.0
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2017-11-03 00:00:00 UTC
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Emerson (EMR) to Report Q4 Earnings: Is a Beat in the Cards?
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https://www.nasdaq.com/articles/emerson-emr-to-report-q4-earnings%3A-is-a-beat-in-the-cards-2017-11-03
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Emerson Electric Co.EMR is scheduled to report fourth-quarter 2017 results before the opening bell on Nov 7. In the quarter to be reported, the company is expected to report strong revenues in Industrial Automation business, which constitutes nearly two-third of its total revenues.
Last quarter, the company's adjusted earnings came in line with the Zacks Consensus Estimate of 68 cents. Ithas a decent earnings surprise history, with an average positive surprise of 5.5% in the trailing four quarters.
We expect Emerson to score an earnings beat in the to-be-reported quarter.
Why a Likely Positive Surprise?
Our proven model shows that Emerson has the right combination of the two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is perfectly the case here as you will see below:
Zacks ESP: Emerson has an Earnings ESP of +0.14%.You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Emerson Electric Company Price and EPS Surprise
Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote
Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Ranks #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Factors Driving the Better-than-Expected Results
Emerson is now poised to grow on the back of global infrastructure growth, as its core businesses hold dominant positions in markets tied to energy efficiency and infrastructure spending. Moreover, environmental regulations are driving the need for new products, adding to itsstrength. Going forward, Emerson believes telecommunications infrastructure demand will continue to be one of the strongest growth drivers.
The companyremains bullish on its Automation Solutions segment backed byfavorable trends in power and life sciences as well asimproving MRO spending by oil and gas customers. The company's focus on domains like human comfort, connected home, food quality, advancing energy efficiency at home and work and sustainability augur well for its Commercial and Residential Solutions segment. Furthermore, its restructuring efforts, undertaken over the past few quarters, are likely to prove conductive to its upcoming results.
Moreover, the Zacks Consensus Estimate for revenues from the Automation Solutions segment in the to-be-reported quarter currently remains high at $2,874 million compared with third-quarter revenues of $2,440 million. This apart, the company's ardent eye for acquisitions is anticipated to be conducive to its core business, going forward. The company is likely to see growth on the recent GeoFields buyout. Other acquisitions including Pentair Valves & Controls, Locus Traxx and PakSense are expected to drive fourth-quarter fiscal sales as well.
However, the fact remains that prolonged softness in the oil and gas markets is anticipated to affect both capital spending and operational expenditure of clients, which in turn may hurt Emerson's operations. Furthermore, a strong U.S. dollar, volatile industrial spending, along withuncertainties in emerging and mature economies remain concerns.
OtherStocks to Consider
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Columbus McKinnon Corporation CMCO has an Earnings ESP of +4.76% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
Deere & Company DE has an Earnings ESP of +0.71% and a Zacks Rank #2.
Rockwell Automation, Inc. ROK has an Earnings ESP of +1.36% and a Zacks Rank #2.
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Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
Emerson Electric Company (EMR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Columbus McKinnon Corporation (CMCO): 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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Ithas a decent earnings surprise history, with an average positive surprise of 5.5% in the trailing four quarters. Our proven model shows that Emerson has the right combination of the two key ingredients. Emerson Electric Company Price and EPS Surprise Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat.
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Emerson Electric Company Price and EPS Surprise Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat. OtherStocks to Consider Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Columbus McKinnon Corporation CMCO has an Earnings ESP of +4.76% and a Zacks Rank #1. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Columbus McKinnon Corporation (CMCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Emerson Electric Company Price and EPS Surprise Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Emerson Electric Company (EMR): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Columbus McKinnon Corporation (CMCO): Free Stock Analysis Report To read this article on Zacks.com click here. Ithas a decent earnings surprise history, with an average positive surprise of 5.5% in the trailing four quarters.
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Emerson Electric Company Price and EPS Surprise Emerson Electric Company Price and EPS Surprise | Emerson Electric Company Quote Zacks Rank: The company carries a Zacks Rank #3, which when combined with a positive ESP, makes us reasonably confident of an earnings beat. OtherStocks to Consider Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter: Columbus McKinnon Corporation CMCO has an Earnings ESP of +4.76% and a Zacks Rank #1. Ithas a decent earnings surprise history, with an average positive surprise of 5.5% in the trailing four quarters.
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80754c82-350f-4e31-be4d-473771d67716
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722237.0
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2017-10-31 00:00:00 UTC
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Why Is Nobody Talking About Oshkosh Corporation Stock?
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https://www.nasdaq.com/articles/why-nobody-talking-about-oshkosh-corporation-stock-2017-10-31
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Want excitement? Then let me tell you about Oshkosh Corporation (NYSE: OSK) . The company -- based, as its name implies, in Oshkosh, Wis. -- manufactures all kinds of specialty trucks, including garbage trucks, telehandlers (basically forklifts on steroids), and aerial work platforms. The company also has several major contracts with the U.S. Department of Defense to provide specialty military vehicles.
Still not excited? How about if I tell you that the company's stock is up 70% in the past year, absolutely destroying the S&P 500 's below-20% gains, and also trouncing other heavy-equipment manufacturers such as Caterpillar (NYSE: CAT) , Deere (NYSE: DE) , and PACCAR (NASDAQ: PCAR) ? In fact, the stock has hit a new all-time record high in five separate months this year, and it will probably do so again in November.
But before you jump in with both feet, there are some things you should know.
Rational exuberance
The biggest jump in Oshkosh's shares came immediately after President Trump's surprise win in the November election, and it's not hard to see why. Oshkosh is pretty much the perfect stock for a Trump presidency . In 2016, it derived 21.5% of its revenue from its defense segment and 48% from its access-equipment segment, which consists largely of construction vehicles. Candidate Trump had promised to boost military spending and to implement a $1 trillion infrastructure spending package, both of which would have created positive business environments for Oshkosh. That's also one reason its stock has fared better than traditional truckmakers such as PACCAR.
At the time, though, there was some doubt about whether Congress would derail Candidate Trump's plans. And while the promised infrastructure package seems to be stuck in limbo, the proposed $90 billion military spending increase just a green light on Capitol Hill as part of the 2018 budget.
With the budget now passed, however, it looks as if the market's early moves to reward Oshkosh were justified. Of course, we don't know how much of that military spending will go to any specific defense contractor, but Oshkosh has been competitive in the past and has several existing long-term contracts with the military.
Knocking it out of the park
If Oshkosh's entire stock rally were based solely on exuberance over Trump administration priorities, it probably wouldn't be worth the price at which it's trading. However, over the past year, Oshkosh has been radically improving its fundamentals.
In the most recent third quarter, which ended June 30 (Oshkosh's fiscal year ends with September), the company improved by virtually every metric. Sales increased in all four of its business segments, and adjusted earnings per share were up an impressive 68% year over year. Margin and cash flow also improved. The company did so well, in fact, that it increased its adjusted EPS forecast to a midpoint of $3.85, up from Q2's projected midpoint of $3.35, which in turn was raised from Q1's projected midpoint of $3.20.
If Oshkosh reports another fantastic quarter in Q4 2017, the company may actually be living up to its hype.
The downside
While Oshkosh's fiscal 2017 is looking a lot better than its fiscal 2016, its revenue and earnings are still lagging behind its post-recession highs:
OSK EBITDA (TTM) data by YCharts
Now, there was a good reason Oshkosh's revenue and earnings were high in 2010 and 2011: The U.S. had a major troop presence in Iraq and Afghanistan. In Afghanistan, for example, there were 100,000 U.S. troops in 2011, compared with less than 10,000 in 2016. The American Recovery and Reinvestment Act had also funded numerous construction projects across the country. So, naturally, a company that specializes in light armored vehicles for troops and construction equipment is going to do well in those circumstances.
However, the stock is now much higher than it was in 2010-11, on lower overall revenue and earnings. Its trailing-12-month P/E ratio, which had been lower than PACCAR's but comparable to Deere's for much of the past 10 years, is now higher than theirs at 27.1, compared with Deere's 22.3 and PACCAR's 18.4. It's much, much lower than Caterpillar's.
Looking at forward P/E, though, Oshkosh's 21.9 -- while still on the high end of its peer group -- is far more in line with Caterpillar's 22, Deere's 20.5, and PACCAR's 17.3. While that seems to indicate that it may be fairly valued, investors should also consider that the massive stock price increase over the past year has knocked its dividend well below those of Caterpillar (2.3%), Deere (1.8%), and PACCAR (1.4%). Oshkosh currently yields a piddling 0.9%.
What to do now
With big share price gains already in the rearview mirror, and enthusiasm about potential military and infrastructure spending already priced into the stock, plus a reasonable valuation based on forward P/E, there may not be much more upside left for Oshkosh. That said, the company is continuing to perform well, so buying in now wouldn't be the worst choice you could make. I wish the dividend yield were a bit higher -- it would go a long way toward improving the case for buying in at this record-high price.
One thing's for certain: Oshkosh doesn't look like the value it did a year ago. But there may still be gas left in the specialty-truck engine. If I owned Oshkosh today, I'd hold on and hope it keeps doing what it's doing.
10 stocks we like better than Oshkosh Corporation
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John Bromels owns shares of PACCAR. The Motley Fool owns shares of and recommends 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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Rational exuberance The biggest jump in Oshkosh's shares came immediately after President Trump's surprise win in the November election, and it's not hard to see why. The company also has several major contracts with the U.S. Department of Defense to provide specialty military vehicles. How about if I tell you that the company's stock is up 70% in the past year, absolutely destroying the S&P 500 's below-20% gains, and also trouncing other heavy-equipment manufacturers such as Caterpillar (NYSE: CAT) , Deere (NYSE: DE) , and PACCAR (NASDAQ: PCAR) ?
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How about if I tell you that the company's stock is up 70% in the past year, absolutely destroying the S&P 500 's below-20% gains, and also trouncing other heavy-equipment manufacturers such as Caterpillar (NYSE: CAT) , Deere (NYSE: DE) , and PACCAR (NASDAQ: PCAR) ? In the most recent third quarter, which ended June 30 (Oshkosh's fiscal year ends with September), the company improved by virtually every metric. While that seems to indicate that it may be fairly valued, investors should also consider that the massive stock price increase over the past year has knocked its dividend well below those of Caterpillar (2.3%), Deere (1.8%), and PACCAR (1.4%).
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How about if I tell you that the company's stock is up 70% in the past year, absolutely destroying the S&P 500 's below-20% gains, and also trouncing other heavy-equipment manufacturers such as Caterpillar (NYSE: CAT) , Deere (NYSE: DE) , and PACCAR (NASDAQ: PCAR) ? The downside While Oshkosh's fiscal 2017 is looking a lot better than its fiscal 2016, its revenue and earnings are still lagging behind its post-recession highs: OSK EBITDA (TTM) data by YCharts Now, there was a good reason Oshkosh's revenue and earnings were high in 2010 and 2011: The U.S. had a major troop presence in Iraq and Afghanistan. What to do now With big share price gains already in the rearview mirror, and enthusiasm about potential military and infrastructure spending already priced into the stock, plus a reasonable valuation based on forward P/E, there may not be much more upside left for Oshkosh.
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Its trailing-12-month P/E ratio, which had been lower than PACCAR's but comparable to Deere's for much of the past 10 years, is now higher than theirs at 27.1, compared with Deere's 22.3 and PACCAR's 18.4. What to do now With big share price gains already in the rearview mirror, and enthusiasm about potential military and infrastructure spending already priced into the stock, plus a reasonable valuation based on forward P/E, there may not be much more upside left for Oshkosh. The company also has several major contracts with the U.S. Department of Defense to provide specialty military vehicles.
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4eced8e1-5ca2-4eac-8f18-15818d5a1147
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722238.0
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2017-10-30 00:00:00 UTC
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Notable Monday Option Activity: CAR, KEX, DE
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https://www.nasdaq.com/articles/notable-monday-option-activity-car-kex-de-2017-10-30
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Avis Budget Group Inc (Symbol: CAR), where a total of 8,232 contracts have traded so far, representing approximately 823,200 underlying shares. That amounts to about 51.8% of CAR's average daily trading volume over the past month of 1.6 million shares. Particularly high volume was seen for the $42 strike call option expiring May 18, 2018 , with 5,530 contracts trading so far today, representing approximately 553,000 underlying shares of CAR. Below is a chart showing CAR's trailing twelve month trading history, with the $42 strike highlighted in orange:
Kirby Corp. (Symbol: KEX) saw options trading volume of 1,321 contracts, representing approximately 132,100 underlying shares or approximately 50.1% of KEX's average daily trading volume over the past month, of 263,505 shares. Particularly high volume was seen for the $75 strike call option expiring November 17, 2017 , with 1,302 contracts trading so far today, representing approximately 130,200 underlying shares of KEX. Below is a chart showing KEX's trailing twelve month trading history, with the $75 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 7,588 contracts thus far today. That number of contracts represents approximately 758,800 underlying shares, working out to a sizeable 46.3% of DE's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $119 strike put option expiring December 01, 2017 , with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $119 strike highlighted in orange:
For the various different available expirations for CAR options , KEX 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 $42 strike call option expiring May 18, 2018 , with 5,530 contracts trading so far today, representing approximately 553,000 underlying shares of CAR. Particularly high volume was seen for the $75 strike call option expiring November 17, 2017 , with 1,302 contracts trading so far today, representing approximately 130,200 underlying shares of KEX. Particularly high volume was seen for the $119 strike put option expiring December 01, 2017 , with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of DE.
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Below is a chart showing CAR's trailing twelve month trading history, with the $42 strike highlighted in orange: Kirby Corp. (Symbol: KEX) saw options trading volume of 1,321 contracts, representing approximately 132,100 underlying shares or approximately 50.1% of KEX's average daily trading volume over the past month, of 263,505 shares. Below is a chart showing KEX's trailing twelve month trading history, with the $75 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 7,588 contracts thus far today. Below is a chart showing DE's trailing twelve month trading history, with the $119 strike highlighted in orange: For the various different available expirations for CAR options , KEX options , or DE 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 Avis Budget Group Inc (Symbol: CAR), where a total of 8,232 contracts have traded so far, representing approximately 823,200 underlying shares. Below is a chart showing CAR's trailing twelve month trading history, with the $42 strike highlighted in orange: Kirby Corp. (Symbol: KEX) saw options trading volume of 1,321 contracts, representing approximately 132,100 underlying shares or approximately 50.1% of KEX's average daily trading volume over the past month, of 263,505 shares. Below is a chart showing DE's trailing twelve month trading history, with the $119 strike highlighted in orange: For the various different available expirations for CAR options , KEX options , or DE options , visit StockOptionsChannel.com.
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Particularly high volume was seen for the $42 strike call option expiring May 18, 2018 , with 5,530 contracts trading so far today, representing approximately 553,000 underlying shares of CAR. Below is a chart showing CAR's trailing twelve month trading history, with the $42 strike highlighted in orange: Kirby Corp. (Symbol: KEX) saw options trading volume of 1,321 contracts, representing approximately 132,100 underlying shares or approximately 50.1% of KEX's average daily trading volume over the past month, of 263,505 shares. Particularly high volume was seen for the $119 strike put option expiring December 01, 2017 , with 2,000 contracts trading so far today, representing approximately 200,000 underlying shares of DE.
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d42db557-df9a-46ce-851d-1bab35063d93
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722239.0
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2017-10-30 00:00:00 UTC
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AGCO Gets Relative Strength Rating Upgrade
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https://www.nasdaq.com/articles/agco-gets-relative-strength-rating-upgrade-2017-10-30
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On Monday, AGCO ( AGCO ) earned an upgrade to its Relative Strength ( RS ) Rating , from 70 to 74.
[ibd-display-video id=2360792 width=50 float=left autostart=true] IBD's unique RS Rating tracks market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
History shows that the stocks that go on to make the biggest gains tend to have an RS Rating of at least 80 as they launch their largest climbs. See if AGCO can continue to rebound and hit that benchmark.
Looking For The Best Stocks To Buy And Watch? Start Here
AGCO is not currently near a potential buying area. See if the stock goes on to form a promising consolidation that could ignite a new run.
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 13%, compared to 0% in the prior report. Revenue increased from 4% to 8%.
AGCO holds the No. 4 rank among its peers in the Machinery-Farm industry group. Deere & Company ( DE ) is the top-ranked stock within the group.
RELATED:
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
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=2360792 width=50 float=left autostart=true] IBD's unique RS Rating tracks market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database. On Monday, AGCO ( AGCO ) earned an upgrade to its Relative Strength ( RS ) Rating , from 70 to 74. Deere & Company ( DE ) is the top-ranked stock within the group.
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On Monday, AGCO ( AGCO ) earned an upgrade to its Relative Strength ( RS ) Rating , from 70 to 74. IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? [ibd-display-video id=2360792 width=50 float=left autostart=true] IBD's unique RS Rating tracks market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
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On Monday, AGCO ( AGCO ) earned an upgrade to its Relative Strength ( RS ) Rating , from 70 to 74. IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? [ibd-display-video id=2360792 width=50 float=left autostart=true] IBD's unique RS Rating tracks market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
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On Monday, AGCO ( AGCO ) earned an upgrade to its Relative Strength ( RS ) Rating , from 70 to 74. Deere & Company ( DE ) is the top-ranked stock within the group. [ibd-display-video id=2360792 width=50 float=left autostart=true] IBD's unique RS Rating tracks market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
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5dabc2cb-973c-4eb1-82b7-a77bac213e34
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722240.0
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2017-10-26 00:00:00 UTC
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Natural Disasters Likely to Hurt Eaton's (ETN) Q3 Earnings
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https://www.nasdaq.com/articles/natural-disasters-likely-to-hurt-eatons-etn-q3-earnings-2017-10-26
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Eaton CorporationETN is slated to report third-quarter 2017 financial results before the market opens on Oct 31. The power management company delivered a negative earnings surprise of 0.86% in the last quarter. Let's see how things are shaping up for this earnings season.
Factors to Consider
Eaton expects hurricanes Maria, Irma and Harvey, as well as the earthquake in Mexico City to have an adverse impact of 3 cents on its projected earnings per share guidance of $1.20 to $1.30.
The natural calamities will no doubt have a short-term effect on Eaton's performance. However, the company expects improvement in the end-market conditions to increase its organic revenues by 2.5% to 3.5% in the third quarter from the year-ago period. Eaton's restructuring initiatives are also likely to have a positive impact on its margins.
Electric Products segment is a major contributor to Eaton's total revenues. The Zacks Consensus Estimate projects this segment to contribute nearly 35.6% of total revenues in the third quarter, which is better than last-year quarter.
The Zacks Consensus Estimate for total revenues of $5,111 million in the third quarter reflects a 0.4% drop sequentially, primarily due to lower contribution expectation from its Vehicle segment.
Eaton Corporation, PLC Price and EPS Surprise
Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote
Earnings Whispers
Our proven model does not conclusively show that Eaton is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.
Zacks ESP : The company's Earnings ESP is -0.34%.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank : Eaton's Zacks Rank #3, when combined with a negative Earnings ESP makes a beat unlikely this quarter.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks With Favorable Combination
One can consider a few other companies from the Zacks Industrial Products Sector that have the right combination of elements to post an earnings beat this quarter.
Deere & Company DE has an Earnings ESP of +0.71% and a Zacks Rank #3. It is expected to report fourth-quarter fiscal 2017 earnings on Nov 22. You can see the complete list of today's Zacks #1 Rank stocks here .
Barnes Group B has an Earnings ESP of +1.08% and a Zacks Rank #1. It is expected to report third-quarter earnings on Oct 27.
Terex Corporation TEX has an Earnings ESP of +3.17% and a Zacks Rank #2. It is expected to report third-quarter earnings on Nov 1.
Looking for Stocks with Skyrocketing Upside?
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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
Terex Corporation (TEX): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): 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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Factors to Consider Eaton expects hurricanes Maria, Irma and Harvey, as well as the earthquake in Mexico City to have an adverse impact of 3 cents on its projected earnings per share guidance of $1.20 to $1.30. The power management company delivered a negative earnings surprise of 0.86% in the last quarter. Eaton Corporation, PLC Price and EPS Surprise Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote Earnings Whispers Our proven model does not conclusively show that Eaton is likely to beat earnings this quarter as it does not possess the key components.
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Eaton Corporation, PLC Price and EPS Surprise Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote Earnings Whispers Our proven model does not conclusively show that Eaton is likely to beat earnings this quarter as it does not possess the key components. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Barnes Group, Inc. (B): Free Stock Analysis Report To read this article on Zacks.com click here. The power management company delivered a negative earnings surprise of 0.86% in the last quarter.
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Eaton Corporation, PLC Price and EPS Surprise Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote Earnings Whispers Our proven model does not conclusively show that Eaton is likely to beat earnings this quarter as it does not possess the key components. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Barnes Group, Inc. (B): Free Stock Analysis Report To read this article on Zacks.com click here. The power management company delivered a negative earnings surprise of 0.86% in the last quarter.
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The power management company delivered a negative earnings surprise of 0.86% in the last quarter. Factors to Consider Eaton expects hurricanes Maria, Irma and Harvey, as well as the earthquake in Mexico City to have an adverse impact of 3 cents on its projected earnings per share guidance of $1.20 to $1.30. Eaton Corporation, PLC Price and EPS Surprise Eaton Corporation, PLC Price and EPS Surprise | Eaton Corporation, PLC Quote Earnings Whispers Our proven model does not conclusively show that Eaton is likely to beat earnings this quarter as it does not possess the key components.
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722241.0
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2017-10-24 00:00:00 UTC
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Caterpillar Inc. Is Still Plowing Ahead — Stick With It
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https://www.nasdaq.com/articles/caterpillar-inc-still-plowing-ahead-stick-it-2017-10-24
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Caterpillar Inc. (NYSE: CAT ) has been a Teflon stock. It has consistently shrugged off every bearish thesis for over 18 months. Late in 2014 I too had issues with CAT's prospects, and early in 2015 I thought I had it right as the stock fell 40% before bottoming in February of 2016.
Source: Anthony via Flickr
However, since then the story changed for CAT stock - at least in my view it did. It became clear that the global central banks were completely dedicated to re-inflating the globe by continuously pumping as much money as it will take.
The U.S. is contributing to that with the Donald Trump rally to add fuel to the fire that was already burning. Caterpillar is benefiting tremendously from it. More recently, the sad natural disaster rebuild efforts will also provide a boost to its sales.
Stocks don't rally this fast completely based on froth. This morning, CAT is setting new highs and it has filled every measured move off its technical breakouts. This makes for an astonishing 120% rally since February of 2016. Mature stocks like CAT are not supposed to do this.
And when they do, it's usually behind strong fundamentals.
10 More Retirement Stocks to Buy and Hold for the Rest of Your Life
This morning, management delivered a strong earnings beat and Wall Street is loving it. I want to reload with another bullish trade but one that leaves some room for error.
Saying that a stock has good fundamentals is not the same as saying that it's cheap. CAT's price-to-earnings ratio is around 800. This makes even Amazon.com, Inc. (NASDAQ: AMZN ) look like a bargain. Metrics that are this wacky tend to have special circumstances.
So in this case, I find solace in CAT stock's price to book, which is under 6. So owning shares at a discount from today is not likely to be a disaster - and therein lies my thesis. I want to generate income from betting on the support in CAT, not so much in the incremental upside potential from this late in the rally.
Click to Enlarge The price targets for Caterpillar stock on Wall Street are tight. It currently trades smack dab in the middle of them. But interestingly enough, most analysts who cover it are not expecting much with their ratings. So this limits the potential of downgrade surprises. If CAT continues to perform then they are likely to revise their prices higher to match reality.
CAT Stock Trade Idea
The Trade: Sell CAT May 2018 $100 naked put for $1. This is a bullish trade which has a 90% theoretical chance of winning. But if the price falls below that level, then I accrue losses below $99.
Selling naked puts carries big risk. The higher the stock price the bigger the margin requirement. For those who want to mitigate it, they can sell a spread instead.
This Is the Only General Electric Company Trade That Makes Sense Today
The Alternate Trade: Sell the CAT May 2018 $105/$100 bull put spread where I can yield 13% on risk with about the same odds of success. In neither set up do I need a rally to win. In fact CAT stock can fall 25% from here and I could still retain maximum gains.
Ultimately, regardless of how careful I am, investing in stocks is fraught with danger, so I never risk more than I am willing to lose
Get my newsletter for free 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. Is Still Plowing Ahead - Stick With It 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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It became clear that the global central banks were completely dedicated to re-inflating the globe by continuously pumping as much money as it will take. 10 More Retirement Stocks to Buy and Hold for the Rest of Your Life This morning, management delivered a strong earnings beat and Wall Street is loving it. More recently, the sad natural disaster rebuild efforts will also provide a boost to its sales.
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CAT Stock Trade Idea The Trade: Sell CAT May 2018 $100 naked put for $1. This Is the Only General Electric Company Trade That Makes Sense Today The Alternate Trade: Sell the CAT May 2018 $105/$100 bull put spread where I can yield 13% on risk with about the same odds of success. It became clear that the global central banks were completely dedicated to re-inflating the globe by continuously pumping as much money as it will take.
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CAT Stock Trade Idea The Trade: Sell CAT May 2018 $100 naked put for $1. More From InvestorPlace 7 Crumbling Financial Stocks to Sell Now 10 Blue-Chip Dividend Stocks to Buy for 2018 Could Home Depot Inc Stock Have a Professional Problem? It became clear that the global central banks were completely dedicated to re-inflating the globe by continuously pumping as much money as it will take.
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CAT Stock Trade Idea The Trade: Sell CAT May 2018 $100 naked put for $1. It became clear that the global central banks were completely dedicated to re-inflating the globe by continuously pumping as much money as it will take. More recently, the sad natural disaster rebuild efforts will also provide a boost to its sales.
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9e1c49f1-7e8b-47ea-a155-fbfc58b2e0d6
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722242.0
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2017-10-23 00:00:00 UTC
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June 2018 Options Now Available For Deere (DE)
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DE
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https://www.nasdaq.com/articles/june-2018-options-now-available-deere-de-2017-10-23
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the June 2018 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 235 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DE options chain for the new June 2018 contracts and identified one put and one call contract of particular interest.
The put contract at the $125.00 strike price has a current bid of $7.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $125.00, but will also collect the premium, putting the cost basis of the shares at $117.85 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $129.00/share today.
Because the $125.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 5.72% return on the cash commitment, or 8.88% annualized - at Stock Options Channel we call this the YieldBoost .
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $125.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $130.00 strike price has a current bid of $8.55. If an investor was to purchase shares of DE stock at the current price level of $129.00/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $130.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.40% if the stock gets called away at the June 2018 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $130.00 strike highlighted in red:
Considering the fact that the $130.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 49%. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.63% boost of extra return to the investor, or 10.29% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 22%, while the implied volatility in the call contract example is 23%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $129.00) to be 19%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the June 2018 expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the June 2018 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DE options chain for the new June 2018 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing DE's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the June 2018 expiration.
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At Stock Options Channel , our YieldBoost formula has looked up and down the DE options chain for the new June 2018 contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the June 2018 expiration.
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c5803a7c-b366-45e2-b018-99f078d7c360
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722243.0
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2017-10-23 00:00:00 UTC
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Noteworthy Monday Option Activity: LMT, DE, OMC
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DE
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-lmt-de-omc-2017-10-23
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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 Lockheed Martin Corp (Symbol: LMT), where a total volume of 3,630 contracts has been traded thus far today, a contract volume which is representative of approximately 363,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 40.9% of LMT's average daily trading volume over the past month, of 887,475 shares. Especially high volume was seen for the $320 strike call option expiring December 15, 2017 , with 462 contracts trading so far today, representing approximately 46,200 underlying shares of LMT. Below is a chart showing LMT's trailing twelve month trading history, with the $320 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 7,193 contracts thus far today. That number of contracts represents approximately 719,300 underlying shares, working out to a sizeable 40.5% of DE's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $135 strike call option expiring March 16, 2018 , with 2,780 contracts trading so far today, representing approximately 278,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $135 strike highlighted in orange:
And Omnicom Group, Inc. (Symbol: OMC) options are showing a volume of 9,321 contracts thus far today. That number of contracts represents approximately 932,100 underlying shares, working out to a sizeable 40.4% of OMC's average daily trading volume over the past month, of 2.3 million shares. Especially high volume was seen for the $75 strike call option expiring November 17, 2017 , with 8,742 contracts trading so far today, representing approximately 874,200 underlying shares of OMC. Below is a chart showing OMC's trailing twelve month trading history, with the $75 strike highlighted in orange:
For the various different available expirations for LMT options , DE options , or OMC 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 $320 strike call option expiring December 15, 2017 , with 462 contracts trading so far today, representing approximately 46,200 underlying shares of LMT. Particularly high volume was seen for the $135 strike call option expiring March 16, 2018 , with 2,780 contracts trading so far today, representing approximately 278,000 underlying shares of DE. Especially high volume was seen for the $75 strike call option expiring November 17, 2017 , with 8,742 contracts trading so far today, representing approximately 874,200 underlying shares of OMC.
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Below is a chart showing LMT's trailing twelve month trading history, with the $320 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 7,193 contracts thus far today. That number of contracts represents approximately 719,300 underlying shares, working out to a sizeable 40.5% of DE's average daily trading volume over the past month, of 1.8 million shares. That number of contracts represents approximately 932,100 underlying shares, working out to a sizeable 40.4% of OMC's average daily trading volume over the past month, of 2.3 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Lockheed Martin Corp (Symbol: LMT), where a total volume of 3,630 contracts has been traded thus far today, a contract volume which is representative of approximately 363,000 underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $320 strike call option expiring December 15, 2017 , with 462 contracts trading so far today, representing approximately 46,200 underlying shares of LMT. Especially high volume was seen for the $75 strike call option expiring November 17, 2017 , with 8,742 contracts trading so far today, representing approximately 874,200 underlying shares of OMC.
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That number of contracts represents approximately 932,100 underlying shares, working out to a sizeable 40.4% of OMC's average daily trading volume over the past month, of 2.3 million shares. Especially high volume was seen for the $75 strike call option expiring November 17, 2017 , with 8,742 contracts trading so far today, representing approximately 874,200 underlying shares of OMC. Below is a chart showing OMC's trailing twelve month trading history, with the $75 strike highlighted in orange: For the various different available expirations for LMT options , DE options , or OMC options , visit StockOptionsChannel.com.
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48892a01-2413-4cff-9987-fed4cce02634
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722244.0
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2017-10-20 00:00:00 UTC
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Bear of the Day: Titan International (TWI)
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DE
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https://www.nasdaq.com/articles/bear-day-titan-international-twi-2017-10-20
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nan
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nan
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Titan International, Inc. ( TWI ), a Zacks Rank #5 (Strong Sell) is a global manufacturer of off-highway steel wheels and tires in the agricultural, earthmoving/construction and consumer markets. Titan generally manufactures both wheels and tires for these markets and provides the value-added service of assembling the completed wheel-tire system. They offer a broad range of different products that are manufactured in relatively short production runs to meet original equipment manufacturers' specifications and/or aftermarket customer requirements.
Recent Earnings Data
In TWI's most recent earnings report, they significantly missed the Zacks consensus earnings estimate ($0.11 estimate vs. -$0.09 actual), but did beat the Zacks consensus revenue estimate. The company posted a +10% increase in net sales, but the net loss applicable to shareholders increased from -$5.2 million in Q2 16 to a net loss of -$10.3 million in Q2 17.
Issues Facing the Company
Declining gross margins due to increasing raw material costs (costs increased in all geographical areas) negatively impacted EPS in the second quarter. To combat the increase in raw material costs, management increased prices for their aftermarket original equipment manufacturer (OEM) contracts, which should contain some of the raw material costs. Also, the slowdown and lack of an overall recovery in agriculture is acting as a further headwind. Lastly, the second half of the year typically has a seasonal slowdown which will put further pressure on both the top and bottom lines.
Management's Take
According to Paul Reitz, President and CEO, " The current quarter saw sequential gross margin improvement, up from 11.1 percent in the first quarter to 12.0 percent in the second. This improvement was in spite of significant raw material pricing headwinds that negatively impacted gross profit by approximately $11 million during the second quarter. Although we believe that raw material pricing has now stabilized, our OEM contracts in North America did not allow us to fully pass through these higher costs during the quarter. Because of these headwinds, we did not reach the gross margin level we experienced this quarter last year; however, with the increased pricing that has now taken place with the OEMs and the raw material price stabilization, we do not anticipate further negative impacts from raw material prices in the second half of this year ."
Price and Earnings Consensus Graph
As you can see in the graph below, the elevated cost for raw material, the implementation of their new enterprise resource system (ERP), and the negative seasonality of the second half of the year, has caused the stock price and future earnings estimates to decline as of late.
Titan International, Inc. Price and Consensus
Titan International, Inc. Price and Consensus | Titan International, Inc. Quote
Declining Earnings Estimates
Given the headwinds facing the company over the next two quarters earnings estimates for Q3 17, Q4 17, FY 17, and FY 18 have all seen negative revisions over the past 30 days; Q3 17 fell from $0.01 to -$0.12, Q4 17 declined from $0.06 to -$0.08, FY 17 was cut from -$0.30 to -$0.55, and FY 18 was reduced from $0.33 to $0.15.
Bottom Line
The next two quarters will be a bit difficult for the company, but once their ERP system, and increased prices take effect the company can see a positive turnaround by the second quarter 2018. In the meantime, if you are inclined to invest in the Manufacturing/Farm Equipment segment you would be best served by looking into Deere & Co ( DE ) and or AGCO Corp ( AGCO ) both of whom currently carry a Zacks Rank #3 (Hold) rating.
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
Titan International, Inc. (TWI): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): 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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Titan generally manufactures both wheels and tires for these markets and provides the value-added service of assembling the completed wheel-tire system. The company posted a +10% increase in net sales, but the net loss applicable to shareholders increased from -$5.2 million in Q2 16 to a net loss of -$10.3 million in Q2 17. Issues Facing the Company Declining gross margins due to increasing raw material costs (costs increased in all geographical areas) negatively impacted EPS in the second quarter.
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Titan International, Inc. Price and Consensus Titan International, Inc. Price and Consensus | Titan International, Inc. Quote Declining Earnings Estimates Given the headwinds facing the company over the next two quarters earnings estimates for Q3 17, Q4 17, FY 17, and FY 18 have all seen negative revisions over the past 30 days; Q3 17 fell from $0.01 to -$0.12, Q4 17 declined from $0.06 to -$0.08, FY 17 was cut from -$0.30 to -$0.55, and FY 18 was reduced from $0.33 to $0.15. Click to get this free report Titan International, Inc. (TWI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. Titan generally manufactures both wheels and tires for these markets and provides the value-added service of assembling the completed wheel-tire system.
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Titan International, Inc. Price and Consensus Titan International, Inc. Price and Consensus | Titan International, Inc. Quote Declining Earnings Estimates Given the headwinds facing the company over the next two quarters earnings estimates for Q3 17, Q4 17, FY 17, and FY 18 have all seen negative revisions over the past 30 days; Q3 17 fell from $0.01 to -$0.12, Q4 17 declined from $0.06 to -$0.08, FY 17 was cut from -$0.30 to -$0.55, and FY 18 was reduced from $0.33 to $0.15. Click to get this free report Titan International, Inc. (TWI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. Titan generally manufactures both wheels and tires for these markets and provides the value-added service of assembling the completed wheel-tire system.
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Issues Facing the Company Declining gross margins due to increasing raw material costs (costs increased in all geographical areas) negatively impacted EPS in the second quarter. Price and Earnings Consensus Graph As you can see in the graph below, the elevated cost for raw material, the implementation of their new enterprise resource system (ERP), and the negative seasonality of the second half of the year, has caused the stock price and future earnings estimates to decline as of late. Titan generally manufactures both wheels and tires for these markets and provides the value-added service of assembling the completed wheel-tire system.
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b73858f3-e8b3-4084-9494-571fa95cbfd2
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722245.0
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2017-10-12 00:00:00 UTC
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Pastel & Associes Sa Buys Loews Corp, Bed Bath & Beyond Inc, Sells Ternium SA, Deere
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DE
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https://www.nasdaq.com/articles/pastel-associes-sa-buys-loews-corp-bed-bath-beyond-inc-sells-ternium-sa-deere-2017-10-12
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nan
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nan
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Pastel & Associes Sa
New Purchases: L ,
Added Positions: BBBY ,
Reduced Positions: TX , DE, CMI, DO, AXP, LUK, MKL, TS,
For the details of PASTEL & ASSOCIES SA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PASTEL+%26+ASSOCIES+SA
These are the top 5 holdings of PASTEL & ASSOCIES SA
Diamond Offshore Drilling Inc ( DO ) - 1,096,455 shares, 21.77% of the total portfolio. Shares reduced by 8.97%
Leucadia National Corp ( LUK ) - 472,387 shares, 16.33% of the total portfolio. Shares reduced by 5.6%
Deere & Co ( DE ) - 85,350 shares, 14.68% of the total portfolio. Shares reduced by 22.66%
Markel Corp ( MKL ) - 7,550 shares, 11.04% of the total portfolio. Shares reduced by 3.82%
Loews Corp ( L ) - 140,000 shares, 9.17% of the total portfolio. New Position
New Purchase: Loews Corp ( L )
Pastel & Associes Sa initiated holdings in Loews Corp. The purchase prices were between $45.12 and $49.19, with an estimated average price of $47.58. The stock is now traded at around $48.60. The impact to the portfolio due to this purchase was 9.17%. The holdings were 140,000 shares as of 2017-09-30.
Added: Bed Bath & Beyond Inc (BBBY)
Pastel & Associes Sa added to the holdings in Bed Bath & Beyond Inc by 86.66%. The purchase prices were between $22.25 and $31.15, with an estimated average price of $28.06. The stock is now traded at around $21.32. The impact to the portfolio due to this purchase was 1.61%. The holdings were 107,700 shares as of 2017-09-30.
Warning! GuruFocus has detected 2 Warning Signs with BBBY. Click here to check it out.
BBBY 15-Year Financial Data
The intrinsic value of BBBY
Peter Lynch Chart of BBBY
Premium Members
This article first appeared on GuruFocus .
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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Pastel & Associes Sa New Purchases: L , Added Positions: BBBY , Reduced Positions: TX , DE, CMI, DO, AXP, LUK, MKL, TS, For the details of PASTEL & ASSOCIES SA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PASTEL+%26+ASSOCIES+SA These are the top 5 holdings of PASTEL & ASSOCIES SA Diamond Offshore Drilling Inc ( DO ) - 1,096,455 shares, 21.77% of the total portfolio. Added: Bed Bath & Beyond Inc (BBBY) Pastel & Associes Sa added to the holdings in Bed Bath & Beyond Inc by 86.66%. GuruFocus has detected 2 Warning Signs with BBBY.
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Pastel & Associes Sa New Purchases: L , Added Positions: BBBY , Reduced Positions: TX , DE, CMI, DO, AXP, LUK, MKL, TS, For the details of PASTEL & ASSOCIES SA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PASTEL+%26+ASSOCIES+SA These are the top 5 holdings of PASTEL & ASSOCIES SA Diamond Offshore Drilling Inc ( DO ) - 1,096,455 shares, 21.77% of the total portfolio. Added: Bed Bath & Beyond Inc (BBBY) Pastel & Associes Sa added to the holdings in Bed Bath & Beyond Inc by 86.66%. Shares reduced by 5.6% Deere & Co ( DE ) - 85,350 shares, 14.68% of the total portfolio.
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Pastel & Associes Sa New Purchases: L , Added Positions: BBBY , Reduced Positions: TX , DE, CMI, DO, AXP, LUK, MKL, TS, For the details of PASTEL & ASSOCIES SA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PASTEL+%26+ASSOCIES+SA These are the top 5 holdings of PASTEL & ASSOCIES SA Diamond Offshore Drilling Inc ( DO ) - 1,096,455 shares, 21.77% of the total portfolio. Shares reduced by 5.6% Deere & Co ( DE ) - 85,350 shares, 14.68% of the total portfolio. The stock is now traded at around $48.60.
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Pastel & Associes Sa New Purchases: L , Added Positions: BBBY , Reduced Positions: TX , DE, CMI, DO, AXP, LUK, MKL, TS, For the details of PASTEL & ASSOCIES SA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PASTEL+%26+ASSOCIES+SA These are the top 5 holdings of PASTEL & ASSOCIES SA Diamond Offshore Drilling Inc ( DO ) - 1,096,455 shares, 21.77% of the total portfolio. GuruFocus has detected 2 Warning Signs with BBBY. Shares reduced by 5.6% Deere & Co ( DE ) - 85,350 shares, 14.68% of the total portfolio.
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77147f3d-07cc-4c41-8824-c41e3d81f9a1
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722246.0
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2017-10-12 00:00:00 UTC
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December 1st Options Now Available For Deere (DE)
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DE
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https://www.nasdaq.com/articles/december-1st-options-now-available-deere-de-2017-10-12
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the December 1st expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DE options chain for the new December 1st contracts and identified one put and one call contract of particular interest.
The put contract at the $127.00 strike price has a current bid of $3.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $127.00, but will also collect the premium, putting the cost basis of the shares at $123.30 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $127.97/share today.
Because the $127.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 2.91% return on the cash commitment, or 21.25% annualized - at Stock Options Channel we call this the YieldBoost .
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $127.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $129.00 strike price has a current bid of $3.95. If an investor was to purchase shares of DE stock at the current price level of $127.97/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $129.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.89% if the stock gets called away at the December 1st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $129.00 strike highlighted in red:
Considering the fact that the $129.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 52%. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.09% boost of extra return to the investor, or 22.51% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 23%, while the implied volatility in the call contract example is 24%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $127.97) to be 19%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $129.00 strike highlighted in red: Considering the fact that the $129.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the December 1st expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $129.00 strike highlighted in red: Considering the fact that the $129.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the December 1st expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DE options chain for the new December 1st contracts and identified one put and one call contract of particular interest.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $127.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $129.00 strike price has a current bid of $3.95. Below is a chart showing DE's trailing twelve month trading history, with the $129.00 strike highlighted in red: Considering the fact that the $129.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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At Stock Options Channel , our YieldBoost formula has looked up and down the DE options chain for the new December 1st contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $129.00 strike highlighted in red: Considering the fact that the $129.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the December 1st expiration.
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c9e0f2c3-1b9d-4213-9069-8e7d361ecc30
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722247.0
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2017-10-09 00:00:00 UTC
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Why Deere & Company is Paying $305 Million For the Privilege of Trimming Your Lettuce
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DE
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https://www.nasdaq.com/articles/why-deere-company-paying-305-million-privilege-trimming-your-lettuce-2017-10-09
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nan
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nan
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If any company should be at the forefront of 21st-century agriculture, it's machinery giant Deere & Company (NYSE: DE) . Staying true to its roots as a manufacturer of farm equipment, last month the company paid $305 million to acquire privately held Blue River Technology, a privately held California company that makes high-tech crop-spraying equipment.
Even for a Deere-sized enterprise, $305 million is a lot of green. Let's unpack the deal and see if it was worth the money.
See, spray, and profit
California-based Blue River Technology was founded in 2011, with its stated goal "to make farming more sustainable through robotics and computer vision."
It has two products, both of which are basically big, high-tech devices that hook onto a tractor. The first is LettuceBot, which assists with the arduous process of lettuce thinning (removing inferior leaves to promote the growth of healthier ones). The second is See & Spray, a system that precision-spritzes pesticide onto weeds without affecting nearby crops. Both have machine-learning capability.
The benefits of this technology are obvious -- it automates processes that have been done by hand for years, saving on labor costs. And it eliminates waste in materials that can be pricey. According to Blue River Technology's estimates, on a global basis annual spending on pesticides is roughly $50 billion. The company says See & Spray utilizes up to 90% less herbicide (a category of pesticide) than traditional methods.
That potential is very appealing, but it doesn't seem to be the key attraction for Deere. The company strongly hinted that it was more interested in the technology underpinning the two products. In its press release heralding the deal, CIO John May said that "[m]achine learning is an important capability for Deere's future."
Brains are expensive
Since both machine learning and assisted and autonomous operation are at the edge of current vehicle technology, expertise in them is hard to come by, even for large and wealthy companies. That's why it's become the norm for automakers and tech-solutions providers to buy that knowledge rather than work it up in-house.
Just ask computer-chip giant Intel (NASDAQ: INTC) , which this summer closed its deal for autonomous-systems specialist Mobileye . Or master of the transportation-sharing economy Uber: In 2016 it acquired Otto, a company that focuses on developing cutting-edge assisted and autonomous driving solutions for trucks.
Not to be outdone, earlier this year Ford (NYSE: F) bought a majority stake in Argo AI , an early-stage robotics and artificial intelligence company, in order to bolster its efforts in the autonomous sphere.
None of these deals came cheap. Intel spent over $15 billion to put Mobileye in its portfolio. Ford's Argo AI investment will ultimately total $1 billion. Uber got a relative bargain with the Otto deal, but it was still pricey at around $680 million. Anyone who wants to play in the autonomous and machine-learning games has to pay, and dearly.
Does the deal make sense?
Deere and Blue River agreed to their arrangement in September, and it closed in the same month. Deere said it intends to keep its new asset headquartered in California's Silicon Valley, specifically Sunnyvale. The deal was not subject to regulatory or shareholder approval.
Blue River's current technology is harnessed only to a pair of very specialized agricultural functions, so it makes sense that it costs less than Intel, Ford, and Uber paid in their recent deals. But the brains of Blue River's machines can theoretically be modified by Deere's best and brightest in order to help automate the company's many other vehicles -- and perhaps even pioneer new types of functionality.
Of course, the ultimate impact of Deere's latest acquisition will depend on how quickly and effectively the company can accomplish at least some of this. We'll see how that goes. But what Blue River has is full of potential, and dovetails nicely with its new owner's core strength and expertise. Looked at from that angle, it's a pretty good deal, despite the nine-figure price tag.
10 stocks we like better than Deere & Company
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*Stock Advisor returns as of September 5, 2017
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Ford. The Motley Fool recommends Intel. 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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Not to be outdone, earlier this year Ford (NYSE: F) bought a majority stake in Argo AI , an early-stage robotics and artificial intelligence company, in order to bolster its efforts in the autonomous sphere. Blue River's current technology is harnessed only to a pair of very specialized agricultural functions, so it makes sense that it costs less than Intel, Ford, and Uber paid in their recent deals. If any company should be at the forefront of 21st-century agriculture, it's machinery giant Deere & Company (NYSE: DE) .
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Blue River's current technology is harnessed only to a pair of very specialized agricultural functions, so it makes sense that it costs less than Intel, Ford, and Uber paid in their recent deals. If any company should be at the forefront of 21st-century agriculture, it's machinery giant Deere & Company (NYSE: DE) . Even for a Deere-sized enterprise, $305 million is a lot of green.
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Blue River's current technology is harnessed only to a pair of very specialized agricultural functions, so it makes sense that it costs less than Intel, Ford, and Uber paid in their recent deals. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. If any company should be at the forefront of 21st-century agriculture, it's machinery giant Deere & Company (NYSE: DE) .
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Uber got a relative bargain with the Otto deal, but it was still pricey at around $680 million. Blue River's current technology is harnessed only to a pair of very specialized agricultural functions, so it makes sense that it costs less than Intel, Ford, and Uber paid in their recent deals. If any company should be at the forefront of 21st-century agriculture, it's machinery giant Deere & Company (NYSE: DE) .
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146c9385-bc6c-4a87-968e-6a43b036eb65
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722248.0
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2017-10-09 00:00:00 UTC
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US Indexes Fall on Monday
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DE
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https://www.nasdaq.com/articles/us-indexes-fall-monday-2017-10-09
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nan
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nan
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Wall Street fell from record levels today, fueled by health care stocks. The major indexes opened in the green, but reversed to close lower.
General Electric Co. ( GE ) fell almost 4% after Chief Financial Officer Jeff Bornstein announced his retirement. He will be succeeded by Jamie Miller. The company's marketing chief and top international executive are leaving as well.
Moreover, Ed Garden, co-founder of hedge fund Trian Partners, will take the board seat occupied by Robert Lane, a former CEO of Deere & Co. ( DE ) who is retiring after 12 years.
Stephen Tusa, a JPMorgan executive director and company analyst, wrote, "While not an implausible event, we believe the management changes at General Electric reinforce our view that core fundamental challenges are worse than consensus is currently discounting, with a new wrinkle added around possible outcomes from events this fall, almost none of which are positive."
He also rated the stock underweight. Yelp and Cantor Fitzgerald downgraded shares to neutral.
Year to date, the stock is down more than 25%.
Gainers
Micron Technology Inc. ( MU )
Nvidia Corp. ( NVDA )
Wal-Mart Stores Inc. ( WMT )
Philip Morris International Inc. (PM)
Advanced Micro Devices Inc. (AMD)
Altria Group Inc. (MO)
Apache Corp. (APA)
Citrix Systems Inc. (CTXS)
Losers
DaVita Inc. (DVA)
Viacom Inc. (VIAB)
Express Scripts Holding Co. (ESRX)
Juniper Networks Inc. (JNPR)
Symantec Corp. (SYMC)
Envision Healthcare Corp. (EVHC)
Medtronic PLC (MDT)
Disclosure : The author holds no positions in any stocks mentioned.
Premium Members
This article first appeared on GuruFocus .
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, Ed Garden, co-founder of hedge fund Trian Partners, will take the board seat occupied by Robert Lane, a former CEO of Deere & Co. ( DE ) who is retiring after 12 years. Gainers Micron Technology Inc. ( MU ) Nvidia Corp. ( NVDA ) Wal-Mart Stores Inc. ( WMT ) Philip Morris International Inc. (PM) Advanced Micro Devices Inc. (AMD) Altria Group Inc. (MO) Apache Corp. (APA) Citrix Systems Inc. (CTXS) Losers DaVita Inc. (DVA) Viacom Inc. (VIAB) Express Scripts Holding Co. (ESRX) Juniper Networks Inc. (JNPR) Symantec Corp. (SYMC) Envision Healthcare Corp. (EVHC) Medtronic PLC (MDT) Disclosure : The author holds no positions in any stocks mentioned. The major indexes opened in the green, but reversed to close lower.
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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 major indexes opened in the green, but reversed to close lower. He will be succeeded by Jamie Miller.
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Stephen Tusa, a JPMorgan executive director and company analyst, wrote, "While not an implausible event, we believe the management changes at General Electric reinforce our view that core fundamental challenges are worse than consensus is currently discounting, with a new wrinkle added around possible outcomes from events this fall, almost none of which are positive." Gainers Micron Technology Inc. ( MU ) Nvidia Corp. ( NVDA ) Wal-Mart Stores Inc. ( WMT ) Philip Morris International Inc. (PM) Advanced Micro Devices Inc. (AMD) Altria Group Inc. (MO) Apache Corp. (APA) Citrix Systems Inc. (CTXS) Losers DaVita Inc. (DVA) Viacom Inc. (VIAB) Express Scripts Holding Co. (ESRX) Juniper Networks Inc. (JNPR) Symantec Corp. (SYMC) Envision Healthcare Corp. (EVHC) Medtronic PLC (MDT) Disclosure : The author holds no positions in any stocks mentioned. The major indexes opened in the green, but reversed to close lower.
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The major indexes opened in the green, but reversed to close lower. He will be succeeded by Jamie Miller. Moreover, Ed Garden, co-founder of hedge fund Trian Partners, will take the board seat occupied by Robert Lane, a former CEO of Deere & Co. ( DE ) who is retiring after 12 years.
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03e323ea-1c7e-49f3-ab48-70ecf1222d33
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722249.0
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2017-09-27 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for September 28, 2017
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-september-28-2017-2017-09-27
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Deere & Company ( DE ) will begin trading ex-dividend on September 28, 2017. A cash dividend payment of $0.6 per share is scheduled to be paid on November 01, 2017. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 14th quarter that DE has paid the same dividend. At the current stock price of $123.28, the dividend yield is 1.95%.
The previous trading day's last sale of DE was $123.28, representing a -6.96% decrease from the 52 week high of $132.50 and a 49.07% increase over the 52 week low of $82.70.
DE is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and ASML Holding N.V. ( ASML ). DE's current earnings per share, an indicator of a company's profitability, is $5.97. Zacks Investment Research reports DE's forecasted earnings growth in 2017 as 34.59%, compared to an industry average of 20.4%.
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 Agribusiness ETF ( MOO )
VanEck Vectors Natural Resources ETF ( HAP ).
The top-performing ETF of this group is HAP with an increase of 8.88% over the last 100 days. VEGI has the highest percent weighting of DE at 9.17%.
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 2017 as 34.59%, compared to an industry average of 20.4%. For more information on the declaration, record and payment dates, visit the DE Dividend History page.
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The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) VanEck Vectors Agribusiness ETF ( MOO ) VanEck Vectors Natural Resources ETF ( HAP ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company ( DE ) will begin trading ex-dividend on September 28, 2017.
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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 Agribusiness ETF ( MOO ) 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 November 01, 2017. DE's current earnings per share, an indicator of a company's profitability, is $5.97. The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) VanEck Vectors Agribusiness ETF ( MOO ) VanEck Vectors Natural Resources ETF ( HAP ).
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699cf14c-ade4-4e7c-88d7-5844e4d1fdba
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722250.0
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2017-09-26 00:00:00 UTC
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Ex-Dividend Reminder: Lennox International, Deere and Toro
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https://www.nasdaq.com/articles/ex-dividend-reminder-lennox-international-deere-and-toro-2017-09-26
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Looking at the universe of stocks we cover at Dividend Channel , on 9/28/17, Lennox International Inc (Symbol: LII), Deere & Co. (Symbol: DE), and Toro Company (Symbol: TTC) will all trade ex-dividend for their respective upcoming dividends. Lennox International Inc will pay its quarterly dividend of $0.51 on 10/16/17, Deere & Co. will pay its quarterly dividend of $0.60 on 11/1/17, and Toro Company will pay its quarterly dividend of $0.175 on 10/12/17. As a percentage of LII's recent stock price of $171.44, this dividend works out to approximately 0.30%, so look for shares of Lennox International Inc to trade 0.30% lower - all else being equal - when LII shares open for trading on 9/28/17. Similarly, investors should look for DE to open 0.48% lower in price and for TTC to open 0.29% lower, all else being equal.
Below are dividend history charts for LII, DE, and TTC, showing historical dividends prior to the most recent ones declared.
Lennox International Inc (Symbol: LII) :
Deere & Co. (Symbol: DE) :
Toro Company (Symbol: TTC) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.19% for Lennox International Inc, 1.93% for Deere & Co., and 1.14% for Toro Company .
In Tuesday trading, Lennox International Inc shares are currently up about 0.5%, Deere & Co. shares are up about 0.2%, and Toro Company shares are up about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
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 a percentage of LII's recent stock price of $171.44, this dividend works out to approximately 0.30%, so look for shares of Lennox International Inc to trade 0.30% lower - all else being equal - when LII shares open for trading on 9/28/17. If they do continue, the current estimated yields on annualized basis would be 1.19% for Lennox International Inc, 1.93% for Deere & Co., and 1.14% for Toro Company . Looking at the universe of stocks we cover at Dividend Channel , on 9/28/17, Lennox International Inc (Symbol: LII), Deere & Co. (Symbol: DE), and Toro Company (Symbol: TTC) will all trade ex-dividend for their respective upcoming dividends.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/28/17, Lennox International Inc (Symbol: LII), Deere & Co. (Symbol: DE), and Toro Company (Symbol: TTC) will all trade ex-dividend for their respective upcoming dividends. Lennox International Inc will pay its quarterly dividend of $0.51 on 10/16/17, Deere & Co. will pay its quarterly dividend of $0.60 on 11/1/17, and Toro Company will pay its quarterly dividend of $0.175 on 10/12/17. Lennox International Inc (Symbol: LII) : Deere & Co. (Symbol: DE) : Toro Company (Symbol: TTC) : In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/28/17, Lennox International Inc (Symbol: LII), Deere & Co. (Symbol: DE), and Toro Company (Symbol: TTC) will all trade ex-dividend for their respective upcoming dividends. Lennox International Inc will pay its quarterly dividend of $0.51 on 10/16/17, Deere & Co. will pay its quarterly dividend of $0.60 on 11/1/17, and Toro Company will pay its quarterly dividend of $0.175 on 10/12/17. Lennox International Inc (Symbol: LII) : Deere & Co. (Symbol: DE) : Toro Company (Symbol: TTC) : In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/28/17, Lennox International Inc (Symbol: LII), Deere & Co. (Symbol: DE), and Toro Company (Symbol: TTC) will all trade ex-dividend for their respective upcoming dividends. As a percentage of LII's recent stock price of $171.44, this dividend works out to approximately 0.30%, so look for shares of Lennox International Inc to trade 0.30% lower - all else being equal - when LII shares open for trading on 9/28/17. If they do continue, the current estimated yields on annualized basis would be 1.19% for Lennox International Inc, 1.93% for Deere & Co., and 1.14% for Toro Company .
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a5c837d9-35e9-4001-81bb-abb60eacf971
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722251.0
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2017-09-25 00:00:00 UTC
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Caterpillar (CAT) or Deere (DE): Which Is the Better Stock?
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DE
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https://www.nasdaq.com/articles/caterpillar-cat-or-deere-de%3A-which-is-the-better-stock-2017-09-25
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nan
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Last year, the industrial sector was one of the most adversely impacted sectors due to weak commodity prices, reduced investment in the energy sector stemming from lower oil prices , poor economic conditions in some developed and developing nations, and Brexit. However, it seems to have found its footing this year.
For the second quarter of 2017, industrial production - a measure of output at factories, mines and utilities, rose at an annual rate of 4.7%. This was driven by impressive growth in mining and utilities, and marked a substantial improvement over the first-quarter's gain of 1.4%. Industrial production rose 0.2% in July, marking the sixth consecutive monthly increase.
In the past year, the industrial products sector (one of the 16 broad Zacks sectors) has clocked a gain of 21.4%, outperforming the S&P 500's climb of 16.2%. The sector had particularly exhibited strength following the election of President Donald Trump, primarily factoring in his promised pro-growth policies. Government policies encouraging better trade relations, increase in infrastructural investments, job creation and high consumer-end demand will accelerate growth of the U.S. economy. This in turn will prove beneficial for industrial stocks.
Let's take a quick look at the industrial products sector's figures in 2017 so far. The Industrial Products sector put up 18.8% growth in earnings in the second quarter of 2017. Per latest Earnings Trends report an 8.3% growth in earnings is projected for the third quarter of 2017 and 16.6% for the fourth quarter. It is one the eight sectors that is anticipated to log positive growth in earnings in the third quarter.
We put our sectors (all 16 of them) into two groups: the top half (i.e., sectors with the best average Zacks Rank) and the bottom half (the sectors with the worst average Zacks Rank). Over the last 10 years, using a one week rebalance, the top half beat the bottom half by more than twice as much. (To learn more visit: About Zacks Sector Rank ). The industrial products sector, with a Zacks Sector Rank #3, remains in the top half.
In the sector, two heavyweights that hog the limelight are Caterpillar, Inc.CAT and Deere & CompanyDE with market capitalization of $71.7 billion and $38.2 billion, respectively. Caterpillar is the world's largest manufacturer of construction and mining equipment and also dabbles in agricultural equipment, while Deere is the one world's foremost producers of agricultural equipment as well as a leading manufacturer of construction, forestry, along with commercial and consumer equipment.
Investors keen on this sector would be inquisitive about which one has the more attractive prospects. Let's look more closely at how Caterpillar and Deere fare on some key metrics to see which stock deserves to be a part of your portfolio.
Stock Performance
Caterpillar's stock has rallied 51.2% in the past year, outperforming Deere's gain of 47.8%. Both have outpaced the Industrial Product's sector's rise of 21.4% as well as the S&P 500's 16.2%.
Valuation
The EV/EBITDA metric is usually used to compare two stocks within the same industry or sector and has an edge over other metrics such as P/E because it is not affected by the different capital structures of the two companies.
Compared with machinery industry's EV/EBITDA ratio of 14.8, Caterpillar and Deere are both cheaper propositions with respective reading of 13.2 and 13.1. Deere is cheaper in terms of valuation.
Rank and Subindustry Ranking
Caterpillar currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Caterpillar falls under the Zacks Manufacturing-Construction and Mining sub industry which is currently carrying a Rank of #5 (out of 265 industries we cover), being in the top 2%.
While, Deere carries a Zacks Rank #3 (Hold). It falls under the Zacks Manufacturing-Farm Equipment sub industry which is currently carrying a Rank of #179 (out of 265 industries we cover), being in the bottom 30%.
Long Term Growth Expectations
In terms of long-term earnings growth expectations, Caterpillar scores above Deere with a projection of 9.5% compared with the latter's 8.0%.
Dividend Yield
For income investors, Caterpillar has a higher dividend yield (2.5%) than Deere (1.9%). Both have better dividend yields compared with the overall sector's 1.76%. Caterpillar raised dividend in Jun 2017, after a gap of two years. Deere has maintained dividend since 2014.
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 its ability to utilize inventories. In the last year, the inventory turnover ratio for Deere and Caterpillar has been 4.8% and 3.1%, respectively, lower than the sector's level of 5.3%. However, Deere has registered better inventory turnover than Caterpillar.
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. Although they have a comparatively low level of net profit, an above-average ROA denotes that the company in question is generating earnings by effectively managing assets.
A positive ROA indicates that the company has reported gains from assets for the period in question. Coming to Caterpillar and Deere, ROA for the trailing 12-months (TTM) is 3.4% and 3.3%, respectively, which are below the industrial sector's level of 5.5%. This round goes to Caterpillar.
Earnings History, ESP and Estimate Revisions
Caterpillar reported second-quarter adjusted earnings per share of $1.49, logging a 37% improvement year over year and also ahead of the Zacks Consensus Estimate of $1.26. The better-than-expected results were driven by the company's disciplined cost-control efforts. (Read More: Caterpillar Tops Q2 Earnings & Revenues, Raises View )
Deere'sthird-quarter fiscal 2017 (ended Jul 30, 2017) earnings surged around 27% year over year to $1.97 per share. Earnings also beat the Zacks Consensus Estimate of $1.93. (Read More: Deere Beats on Q3 Earnings, Misses Sales, Raises View )
Considering a more comprehensive earnings history, both Caterpillar and Deere delivered positive surprises in each of the prior four quarters. However, Deere stands out with an average positive earnings surprise of 51.5%, better than Caterpillar's average beat of 41.4%.
When considering Earnings ESP , there is little to choose since both Caterpillar and Deere are expected to deliver earnings beat in the next quarter. This is because both the companies have the combination of two key ingredients for a possible earnings beat - a positive Earnings ESPand a Zacks Rank #1, 2 (Buy) or 3.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Deere has a Zacks Rank #3 and an Earnings ESP of 1.34%.
Caterpillar has a Zacks Rank #1 and an Earnings ESP 2.87%.
For Caterpillar, the Zacks Consensus Estimate for fiscal 2017 has moved up 3% to $5.22 while the estimate for fiscal 2017 has gone up 4% to $6.69 in the past 60 days.
For Deere, the Zacks Consensus Estimate for Deere has moved up 2% to $6.47 for fiscal 2017 and for fiscal 2018, the estimate has moved up 4% to $6.69 in the past 60 days.
In Conclusion
These two stocks have grabbed the spotlight with striking performances on the back of solid earnings results and estimate revisions as well as surprise history, along with their share of pros and cons. But given the price performance, Zacks Rank, long-term growth expectations, the scales are currently tipped in Caterpillar's favor.
Some Other Stocks
Apart from Caterpillar, investors interested in the industrial products sector may also consider H&E Equipment Services, Inc. HEES and Komatsu Ltd. KMTUY , both of which carry the same Zacks Rank as Caterpillar.
H&E Equipment Services has surged 72.8% in the past year.
Komatsu stock has gained 25.7% in the past year.
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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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Government policies encouraging better trade relations, increase in infrastructural investments, job creation and high consumer-end demand will accelerate growth of the U.S. economy. Although they have a comparatively low level of net profit, an above-average ROA denotes that the company in question is generating earnings by effectively managing assets. Last year, the industrial sector was one of the most adversely impacted sectors due to weak commodity prices, reduced investment in the energy sector stemming from lower oil prices , poor economic conditions in some developed and developing nations, and Brexit.
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(Read More: Caterpillar Tops Q2 Earnings & Revenues, Raises View ) Deere'sthird-quarter fiscal 2017 (ended Jul 30, 2017) earnings surged around 27% year over year to $1.97 per share. 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. Last year, the industrial sector was one of the most adversely impacted sectors due to weak commodity prices, reduced investment in the energy sector stemming from lower oil prices , poor economic conditions in some developed and developing nations, and Brexit.
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Some Other Stocks Apart from Caterpillar, investors interested in the industrial products sector may also consider H&E Equipment Services, Inc. HEES and Komatsu Ltd. KMTUY , both of which carry the same Zacks Rank as Caterpillar. 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. Last year, the industrial sector was one of the most adversely impacted sectors due to weak commodity prices, reduced investment in the energy sector stemming from lower oil prices , poor economic conditions in some developed and developing nations, and Brexit.
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Stock Performance Caterpillar's stock has rallied 51.2% in the past year, outperforming Deere's gain of 47.8%. (Read More: Caterpillar Tops Q2 Earnings & Revenues, Raises View ) Deere'sthird-quarter fiscal 2017 (ended Jul 30, 2017) earnings surged around 27% year over year to $1.97 per share. Some Other Stocks Apart from Caterpillar, investors interested in the industrial products sector may also consider H&E Equipment Services, Inc. HEES and Komatsu Ltd. KMTUY , both of which carry the same Zacks Rank as Caterpillar.
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2017-09-19 00:00:00 UTC
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Caterpillar Inc. (CAT) Stock Has Catalysts Aplenty — Stay With It
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https://www.nasdaq.com/articles/caterpillar-inc.-cat-stock-has-catalysts-aplenty-stay-with-it-2017-09-19
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
2017 continues to surprise many with the resilience of stocks. This is in spite of scary headlines, which included nuclear war talks and actual missiles flying over Japan. Yet stocks continue to inch up with seemingly no end in sight to this bull rally.
Source: Anthony via Flickr
Caterpillar Inc. (NYSE: CAT ) is a perfect example of how convicted is the bull of 2017. The stock won't quit rallying. Even at all-time highs, analysts still upgrade it and stick their necks out on it even further. As they say, you can't argue with the price action, and Wall Street is acting as if this one is a slam dunk winner.
I am not one to chase rallies this late in the game, but I don't mind betting on proven support inside the extended rallies. Meaning instead of buying too late, I like to sell downside risk where price is not likely to go. This gives me the opportunity to create bullish profits out of thin air even if CAT stock stalls.
Click to Enlarge Selling puts allows me to build healthy buffers but this doesn't absolve me from trading fundamentals. CAT has solid management and a business expansion cycle that's guaranteed thanks to central banks across the globe. Add to it the potential that's bottled up inside the Donald Trump trade and you've got a bullish thesis that would need a black swan event to derail it.
Caterpillar stock is not cheap with triple-digit price-to-earnings, especially when you compare it to Cummins Inc. (NYSE: CMI ) or Deere & Company (NYSE: DE ) which are under 20. So there is plenty of hopium built into CAT from the ongoing global expansion. This is more proof of an uber-bullish equity market and it will a major change in the macro thesis for it to ease. So far, this is not an impending event.
The 7 Best Stocks for Your Golden Years
Today I want to put my risk where my mouth is. No, I won't chase upside potential, but I want to generate profits with no out-of-pocket expense. I am willing to bet that the put placed by the Trump trade will hold. In other words, I will bet that traders will continue to buy dips in CAT stock.
Technically it's not ideal to chase rising wedges as steep as the one that exists in CAT, but I believe that I can create a 20% buffer large enough to protect me if price moves against. There are pivotal levels that I can leverage.
CAT Stock Trade Idea
The Trade: Sell CAT Feb 2018 $97.50 put and collect $1 to open. This is a bullish trade that has an 85% theoretical chance of maximum gains. But if the price falls below my strike, then I own the shares and could accrue losses below $96.50.
Selling naked puts is not suitable for all investors. To mitigate some of that risk, I can sell spreads instead. There, the maximum losses become limited by the width of the spread.
The Alternate Trade: Sell CAT Feb 2018 $100/$97.50 credit put spread where I have about the same chances of success. If it wins, the spread delivers 10% yield on risk.
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 .
More From InvestorPlace
5 Great Stocks and ETFs for Your Starter Portfolio
5 Versatile Dividend Stocks No Matter Your Age
How Walmart (WMT) Can Hurt Amazon (AMZN) Stock
The post Caterpillar Inc. (CAT) Stock Has Catalysts Aplenty - Stay With It 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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This is in spite of scary headlines, which included nuclear war talks and actual missiles flying over Japan. Add to it the potential that's bottled up inside the Donald Trump trade and you've got a bullish thesis that would need a black swan event to derail it. Technically it's not ideal to chase rising wedges as steep as the one that exists in CAT, but I believe that I can create a 20% buffer large enough to protect me if price moves against.
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CAT Stock Trade Idea The Trade: Sell CAT Feb 2018 $97.50 put and collect $1 to open. The Alternate Trade: Sell CAT Feb 2018 $100/$97.50 credit put spread where I have about the same chances of success. This is in spite of scary headlines, which included nuclear war talks and actual missiles flying over Japan.
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CAT Stock Trade Idea The Trade: Sell CAT Feb 2018 $97.50 put and collect $1 to open. More From InvestorPlace 5 Great Stocks and ETFs for Your Starter Portfolio 5 Versatile Dividend Stocks No Matter Your Age How Walmart (WMT) Can Hurt Amazon (AMZN) Stock The post Caterpillar Inc. (CAT) Stock Has Catalysts Aplenty - Stay With It appeared first on InvestorPlace . This is in spite of scary headlines, which included nuclear war talks and actual missiles flying over Japan.
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I am willing to bet that the put placed by the Trump trade will hold. This is in spite of scary headlines, which included nuclear war talks and actual missiles flying over Japan. Even at all-time highs, analysts still upgrade it and stick their necks out on it even further.
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2017-09-19 00:00:00 UTC
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Noteworthy Tuesday Option Activity: DE, NKE, MPC
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-de-nke-mpc-2017-09-19
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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 13,208 contracts have traded so far, representing approximately 1.3 million underlying shares. That amounts to about 46.6% of DE's average daily trading volume over the past month of 2.8 million shares. Particularly high volume was seen for the $120 strike call option expiring October 20, 2017 , with 2,427 contracts trading so far today, representing approximately 242,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $120 strike highlighted in orange:
Nike (Symbol: NKE) saw options trading volume of 35,877 contracts, representing approximately 3.6 million underlying shares or approximately 45.8% of NKE's average daily trading volume over the past month, of 7.8 million shares. Especially high volume was seen for the $52.50 strike call option expiring October 20, 2017 , with 2,804 contracts trading so far today, representing approximately 280,400 underlying shares of NKE. Below is a chart showing NKE's trailing twelve month trading history, with the $52.50 strike highlighted in orange:
And Marathon Petroleum Corp. (Symbol: MPC) saw options trading volume of 20,991 contracts, representing approximately 2.1 million underlying shares or approximately 43.4% of MPC's average daily trading volume over the past month, of 4.8 million shares. Especially high volume was seen for the $55 strike call option expiring October 20, 2017 , with 16,877 contracts trading so far today, representing approximately 1.7 million underlying shares of MPC. Below is a chart showing MPC's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for DE options , NKE options , or MPC 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 $120 strike call option expiring October 20, 2017 , with 2,427 contracts trading so far today, representing approximately 242,700 underlying shares of DE. Especially high volume was seen for the $52.50 strike call option expiring October 20, 2017 , with 2,804 contracts trading so far today, representing approximately 280,400 underlying shares of NKE. Especially high volume was seen for the $55 strike call option expiring October 20, 2017 , with 16,877 contracts trading so far today, representing approximately 1.7 million underlying shares of MPC.
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Below is a chart showing DE's trailing twelve month trading history, with the $120 strike highlighted in orange: Nike (Symbol: NKE) saw options trading volume of 35,877 contracts, representing approximately 3.6 million underlying shares or approximately 45.8% of NKE's average daily trading volume over the past month, of 7.8 million shares. Below is a chart showing NKE's trailing twelve month trading history, with the $52.50 strike highlighted in orange: And Marathon Petroleum Corp. (Symbol: MPC) saw options trading volume of 20,991 contracts, representing approximately 2.1 million underlying shares or approximately 43.4% of MPC's average daily trading volume over the past month, of 4.8 million shares. Especially high volume was seen for the $55 strike call option expiring October 20, 2017 , with 16,877 contracts trading so far today, representing approximately 1.7 million underlying shares of MPC.
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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 13,208 contracts have traded so far, representing approximately 1.3 million underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $120 strike highlighted in orange: Nike (Symbol: NKE) saw options trading volume of 35,877 contracts, representing approximately 3.6 million underlying shares or approximately 45.8% of NKE's average daily trading volume over the past month, of 7.8 million shares. Below is a chart showing NKE's trailing twelve month trading history, with the $52.50 strike highlighted in orange: And Marathon Petroleum Corp. (Symbol: MPC) saw options trading volume of 20,991 contracts, representing approximately 2.1 million underlying shares or approximately 43.4% of MPC's average daily trading volume over the past month, of 4.8 million shares.
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Particularly high volume was seen for the $120 strike call option expiring October 20, 2017 , with 2,427 contracts trading so far today, representing approximately 242,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $120 strike highlighted in orange: Nike (Symbol: NKE) saw options trading volume of 35,877 contracts, representing approximately 3.6 million underlying shares or approximately 45.8% of NKE's average daily trading volume over the past month, of 7.8 million shares. Below is a chart showing NKE's trailing twelve month trading history, with the $52.50 strike highlighted in orange: And Marathon Petroleum Corp. (Symbol: MPC) saw options trading volume of 20,991 contracts, representing approximately 2.1 million underlying shares or approximately 43.4% of MPC's average daily trading volume over the past month, of 4.8 million shares.
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2017-09-18 00:00:00 UTC
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Deere Reaches Analyst Target Price
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https://www.nasdaq.com/articles/deere-reaches-analyst-target-price-2017-09-18
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $118.43, changing hands for $119.01/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher - if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 14 different analyst targets contributing to that average for Deere & Co., but the average is just that - a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $68.00. And then on the other side of the spectrum one analyst has a target as high as $150.00. The standard deviation is $24.104.
But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DE crossing above that average target price of $118.43/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $118.43 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Deere & Co.:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com . Get the latest Zacks research report on DE - FREE .
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $118.43, changing hands for $119.01/share. But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DE crossing above that average target price of $118.43/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $118.43 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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In recent trading, shares of Deere & Co. (Symbol: DE) have crossed above the average analyst 12-month target price of $118.43, changing hands for $119.01/share. But the whole reason to look at the average DE price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level.
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When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. There are 14 different analyst targets contributing to that average for Deere & Co., but the average is just that - a mathematical average. And so with DE crossing above that average target price of $118.43/share, investors in DE have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $118.43 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher - if things are looking up for the company, perhaps it is time for that target price to be raised. There are 14 different analyst targets contributing to that average for Deere & Co., but the average is just that - a mathematical average. And then on the other side of the spectrum one analyst has a target as high as $150.00.
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2017-09-14 00:00:00 UTC
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2 Top Dividend Stocks in Industrial Machinery
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https://www.nasdaq.com/articles/2-top-dividend-stocks-industrial-machinery-2017-09-14
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Though it still faces its fair share of risk, the global economy is steadily firming up. Global gross domestic product is forecast by the World Bank to expand at a rate of nearly 3% in 2018 and 2019. This bodes well for the industrial machinery market, which provides equipment to industries such as agriculture, construction, technology, and materials handling. The industrial machinery market is expected to grow at a compounded annual growth rate of 6% between 2016 and 2024, according to Hexa Research.
As major industries go, this is a pretty fast expansion rate, and creates opportunities for companies which exhibit market dominance or credible industry niches. For dividend-oriented investors looking to participate in these opportunities, consider two top dividend stocks in industrial machinery: a global giant that needs little introduction, and a scrappy, dynamic equipment provider that dominates its niche.
Buy and hold on to John Deere
Global farm and construction equipment titan Deere & Company (NYSE: DE) operates in three major segments: agriculture and turf, construction and forestry, and financial services. The company often combines its first two segments for analysis purposes into "global equipment operations" and refers to its third segment as "financial services operations."
Deere is enjoying a fairly good year in 2017. Total revenue has increased 8% in the first nine months of the fiscal year, and net income is up 33%. However, forward guidance provided by the company in its most recent earnings report put a kink in its stock performance, though shares are still up an impressive 54% since January of 2016.
Deere has grown equipment sales by focusing not just on mechanical improvements to its offerings, but by prioritizing the productivity of its end users. For example, its large agricultural equipment lines are supplemented with "precision agriculture" technologies, which help farmers increase yield. These technologies range from GPS-guided equipment to on-board apps that monitor field conditions.
For example, in September 2017 Deere paid $305 million to acquire Blue River Technology, a company which combines computer vision with artificial intelligence to correctly identify weeds from plants. The technology guides field equipment to spray chemicals only on weeds (as opposed to blanketing the entire field), and it's said to reduce chemical use by 95%.
Deere is also attractive to investors as it employs a strategy of "shareholder value added," or SVA, which it defines as operating profit, less an implied charge for the company's cost of capital. This focus creates a self-imposed profit hurdle for management each year, which over time benefits shareholders.
SVA is increased by Deere's ability to act as a lender to its customers. The company's financial services division augments total operating income by providing higher margins than equipment sales. For example, in the first three quarters of fiscal 2017, financial services lending generated roughly 10% of the company's $21.7 billion in revenue, but approximately 20% of Deere's operating profit of $2.7 billion.
Deere is a rather conservative dividend payer: It hasn't raised its $0.60 quarterly dividend since fiscal 2014. This has to do in part with the nature of the agricultural and construction industries in which Deere sells its equipment -- their tendency to move in boom and bust cycles makes management cautious in its quarterly dividend increases. Nonetheless, the dividend yields 2% at current share price, and Deere's dividend payout ratio weighs in at a very lean 37.1%. With reinvested dividends, a shareholder in Deere & Company would have averaged an annualized total return of 14% over the last five years.
Get attached to this truck attachments specialist
Milwaukee, Wisconsin-based Douglas Dynamics Inc (NYSE: PLOW) is a commercial work truck upfitter and manufacturer of work truck attachments which traces its history back 65 years. More recently, the organization debuted on the public markets in May 2010. Douglas Dynamics is tiny, and indeed dynamic. While its market capitalization of $805 million is just a fraction of Deere & Company's nearly $38 billion market cap, it owns many established and leading brands in the snow plow and salt-spreading truck attachment markets, giving it a predictable source of revenue, earnings, and cash flow.
The company's primary business segment, work truck attachments, is dedicated to the snow and ice control industry. According to Douglas Dynamic's most recent annual report, it owns the world's most extensive distribution network for ice-control products, with over 2,000 points of sale spread across North America, northern Europe, and Asia.
In 2016, Douglas acquired Dejana Truck & Utility Company for $206 million, and created a second business segment, work truck solutions, which concentrates on the upfit of commercial vehicles. This new revenue stream provides insulation against the variability of weather patterns, as snowfall amounts are the one wildcard in an otherwise stable business in the primary attachments segment. Through the first half of this year, work truck solutions contributed 30% of the total revenue of $212 million.
Douglas Dynamics may be a small player in the industrial equipment market, but shareholders love its net profit margins, which typically hover around 10% -- a very decent amount of profit within the context of its industry. But most compellingly, due to the company's stable business model, management maintains a dividend-first mentality when allocating its generous operating cash flow. CEO James Janik illustrated this approach during the company's most recent earnings conference call:
This focus on dividends leads to a somewhat high payout ratio of 75%. At present, Douglas' dividend yields 2.75%. The debt Janik refers to is the borrowing incurred when the company purchased Dejana, which has pushed Douglas' debt-to-equity ratio up to 1.4, higher than a benchmark reading of 1.0, yet quite manageable.
Douglas' dividend yield would be higher if not for the stock's cumulative price appreciation of nearly 215% in the 7.25 years in which it's operated as a public company. Reinvesting those dividends would have generated a total return of 357%, or nearly 49% per year.
Of course, this phenomenal appreciation has made the PLOW ticker a little pricey, but less so than you'd expect due to its strong earnings. Douglas' forward price-to_earnings ratio of 19.5 isn't too much ahead of Deere's, which currently sits at 16.3. Thus, investors can feel comfortable taking a position now as Douglas "plows" ahead in the truck attachments market.
10 stocks we like better than Deere & Company
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Asit Sharma has no position in any of the stocks mentioned. The Motley Fool recommends Douglas Dynamics. 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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For dividend-oriented investors looking to participate in these opportunities, consider two top dividend stocks in industrial machinery: a global giant that needs little introduction, and a scrappy, dynamic equipment provider that dominates its niche. This has to do in part with the nature of the agricultural and construction industries in which Deere sells its equipment -- their tendency to move in boom and bust cycles makes management cautious in its quarterly dividend increases. This bodes well for the industrial machinery market, which provides equipment to industries such as agriculture, construction, technology, and materials handling.
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Buy and hold on to John Deere Global farm and construction equipment titan Deere & Company (NYSE: DE) operates in three major segments: agriculture and turf, construction and forestry, and financial services. In 2016, Douglas acquired Dejana Truck & Utility Company for $206 million, and created a second business segment, work truck solutions, which concentrates on the upfit of commercial vehicles. This bodes well for the industrial machinery market, which provides equipment to industries such as agriculture, construction, technology, and materials handling.
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Buy and hold on to John Deere Global farm and construction equipment titan Deere & Company (NYSE: DE) operates in three major segments: agriculture and turf, construction and forestry, and financial services. While its market capitalization of $805 million is just a fraction of Deere & Company's nearly $38 billion market cap, it owns many established and leading brands in the snow plow and salt-spreading truck attachment markets, giving it a predictable source of revenue, earnings, and cash flow. This bodes well for the industrial machinery market, which provides equipment to industries such as agriculture, construction, technology, and materials handling.
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This bodes well for the industrial machinery market, which provides equipment to industries such as agriculture, construction, technology, and materials handling. With reinvested dividends, a shareholder in Deere & Company would have averaged an annualized total return of 14% over the last five years. Douglas' dividend yield would be higher if not for the stock's cumulative price appreciation of nearly 215% in the 7.25 years in which it's operated as a public company.
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2017-09-13 00:00:00 UTC
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Deere Grows in Precision Agriculture With Blue River Buy
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https://www.nasdaq.com/articles/deere-grows-in-precision-agriculture-with-blue-river-buy-2017-09-13
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Deere & CompanyDE has completed the previously announced acquisition of CA-based, Blue River Technology, for $305 million. This buyout will provide a competitive edge to Deere and bolster its position as a leader in precision agriculture. Blue River Technology is considered a pioneer in bringing machine learning to agricultural spraying equipment. In fact, the company claims that its precision farming technology can save farmers up to 90% of chemical costs used compared with more traditional approaches.
Blue River Aids in Cutting Chemical Costs, Increases Farm Income
Over-reliance on broadcast-spray chemicals as per traditional methods has led to herbicide tolerance in weeds which is a growing concern. Fighting these weeds impacts the crops and consequently farmers' profitability. This is where Blue River's technology comes to use. Computer vision, robotics, and artificial intelligence are being used to help smart machines detect, identify, and make management decisions about every single plant in the field. For instance, Blue River's award winning "see and spray" robots affix to tractors and can precisely identify and spray chemicals only to the plants in need.
Blue River's technology consequently helps cut down the chemical usage, the costly inputs used in farming, enabling farmers to spend more on farming equipment. This in turn will benefit Deere.
Adding Technology to Agriculture - Need of the Hour
The acquisition is in line with Deere's acquisition of NavCom Technology in 1999. NavCom systems and products use GPS satellites, communications satellites and wireless communications media for the acquisition, processing and delivery of precise positioning data. With the buyout, Deere attained a leadership position in the use of GPS technology for agriculture and accelerated machine connectivity as well as optimization.
Deere's sales in the past few years had been dented by lower farm income that impacted farmers' ability to spend on equipment. To combat the weak environment, the company had resorted to cutting back on production and layoffs. It also benefited from the adept execution of operating plans and disciplined cost management as well as the impact of a broad product portfolio.
The scenario has improved this year. Deere anticipates net sales to increase about 11% year over year and projects net income to be roughly $2.075 billion in fiscal 2017.
Notably, the stock has outperformed the industry in the past year. While the shares of Deere rallied 45.5%, the industry gained 43.5%.
For 2017, the USDA forecasts increase in global grain consumption for the 22nd consecutive year. The World Agriculture Supply Demand (WASD) report also projects ample supplies of corn and soybeans from large acreages. Notably, a turnaround in farm income is forecast for calendar 2017, the first increase since the peak in 2013. Meanwhile, global food and agricultural trade is still growing despite sluggish GDP growth, but the prospects are better for 2018 and 2019.
The Blue River deal highlights Deere's growing efforts to add technology to agriculture, which is the need of the hour. The company remains optimistic about the long term, based on steady investments in new products and geographies. It expects to be profitable driven by increased global demand for food, shelter and infrastructure. Further, favorable trends derived from growing, affluent and increasing population along with rising living standards will provide ample opportunity for long-term growth.
Deere carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industrial product space include Caterpillar Inc. CAT , AGCO Corporation AGCO and Komatsu Ltd. KMTUY . All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has expected long-term earnings growth rate of 9.5%.
AGCO has expected long-term earnings growth rate of 13.5%.
Komatsu has expected long-term earnings growth rate of 12.7%.
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
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): 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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Computer vision, robotics, and artificial intelligence are being used to help smart machines detect, identify, and make management decisions about every single plant in the field. Further, favorable trends derived from growing, affluent and increasing population along with rising living standards will provide ample opportunity for long-term growth. Deere & CompanyDE has completed the previously announced acquisition of CA-based, Blue River Technology, for $305 million.
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Blue River Aids in Cutting Chemical Costs, Increases Farm Income Over-reliance on broadcast-spray chemicals as per traditional methods has led to herbicide tolerance in weeds which is a growing concern. Some better-ranked stocks in the industrial product space include Caterpillar Inc. CAT , AGCO Corporation AGCO and Komatsu Ltd. KMTUY . Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Adding Technology to Agriculture - Need of the Hour The acquisition is in line with Deere's acquisition of NavCom Technology in 1999. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE has completed the previously announced acquisition of CA-based, Blue River Technology, for $305 million.
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Adding Technology to Agriculture - Need of the Hour The acquisition is in line with Deere's acquisition of NavCom Technology in 1999. Deere & CompanyDE has completed the previously announced acquisition of CA-based, Blue River Technology, for $305 million. This buyout will provide a competitive edge to Deere and bolster its position as a leader in precision agriculture.
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2017-09-08 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Comcast, Thermo Fisher, China Life Insurance, Deere and American Airlines
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For Immediate Release
Chicago, IL - September 8, 2017 - 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 Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Top Research Reports for Comcast, Thermo Fisher and China Life
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 Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ) and China Life Insurance (NYSE: LFC - Free Report ). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Comcast's shares have gained +11.8% over the last six months, outperforming the Zacks Cable Television industry which has gained +10.7% over the same period. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
Further, the company is working towards 5G network deployment and continues to roll out its DOCSIS 3.1-based internet services to Comcast Business customers. Comcast has also forayed into the over-the-top video delivery market with the launch of its Internet TV service - Stream. Through these initiatives, Comcast aims to check customer churn and provide viewers with more streaming options.
However, tough competition, consolidation-related woes, mounting programming costs and loss of customer base act as near-term risks for Comcast. Competitive threat from online streaming service providers remains a concern.
(You can read the full research report on Comcast here >>> ) .
Shares of Buy-rated Thermo Fisher have outperformed the Zacks Medical sector (up more than +26.2% over the last one year vs +5.3%). The Zacks analyst is upbeat about the company gaining entry into the CDMO market through the recent acquistion of Patheon for $7.2 billion. A series of product launches along with major progress in precision medicine initiatives is also encouraging.
Thermo Fisher's acquisition of FEI Company has already started to boost its analytical instruments portfolio. The company also opened Center of Excellence for electron microscopy in Saudi Arabia. The raised 2017 guidance is all the more encouraging indicating the fact that this overall bullish trend will continue through the year.
(You can read the full research report on Thermo Fisher here >>> ) .
China Life Insurance 's shares have outperformed the Zacks Life Insurance industry year to date, gaining +21.8% vs. +15.8%. The Zacks analyst likes the company's robust market position and organic growth initiatives. Its operational efficiency is also reflected by its product upgrades and premium growth over the last many quarters. China Life's solid investment management also continues to impress.
The company has the most extensive distribution and service network among all insurance companies operating in China. However, it suffers from rising expenses that have been pushing the bottom line down over last few quarters. Its severe exposure to market risk is another concern. (You can read the full research report on China Life Insurance here >>> ) .
Other noteworthy reports we are featuring today include Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ).
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
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Learn more >>
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on CMCSA - FREE
Get the full Report on TMO - FREE
Get the full Report on LFC - FREE
Get the full Report on DE - FREE
Get the full Report on AAL - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report
China Life Insurance Company Limited (LFC): 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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Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Stocks recently featured in the blog include Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ).
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Stocks recently featured in the blog include Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report China Life Insurance Company Limited (LFC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
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Stocks recently featured in the blog include Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Get the full Report on CMCSA - FREE Get the full Report on TMO - FREE Get the full Report on LFC - FREE Get the full Report on DE - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report China Life Insurance Company Limited (LFC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Its operational efficiency is also reflected by its product upgrades and premium growth over the last many quarters. Stocks recently featured in the blog include Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
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2017-09-07 00:00:00 UTC
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Stock Market News For Sep 7, 2017
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https://www.nasdaq.com/articles/stock-market-news-for-sep-7-2017-2017-09-07
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Benchmarks closed higher on Wednesday after President Trump reached an agreement with key members of Congress to extend the debt ceiling deadline. This was done to aid the relief funding for victims of Hurricane Harvey. However, another category 5 Hurricane Irma gained momentum and is slated for land fall on the coast of Florida this weekend. News of Irma's coming sent the timeshare and vacation stocks lower. Meanwhile, Fed's Vice Chairman announced his plans to retire in mid-October, citing 'personal reasons' behind his decision.
The Dow Jones Industrial Average (DJIA) closed at 21,807.64, gaining 0.3%. The S&P 500 Index (INX) increased 0.3% to close at 2,465.54. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,393.31, increasing 0.3%. A total of only around 6.3 billion shares were traded on Wednesday, lower than the last 20-session average of 5.8 billion shares. Advancing issues outnumbered decliners on the NYSE by 1.65-to-1 ratio. On the Nasdaq, advancers outnumbered decliners by a 1.27-to-1 ratio.
Debt Ceiling Deadline to be Extended
Markets closed higher on Monday after President Trump agreed with congressional leaders to support the extension of the debt ceiling deadline in order to fund a relief program to tackle the aftermath of Hurricane Harvey. This short-term debt ceiling extension comes as a part of the Hurricane Harvey relief Bill which provides government funding for the victims of Hurricane Harvey. Senate Majority Leader Mitch McConnell also expressed support for the package.
Extension of the debt ceiling is primarily part of the agenda of the Democrats. Senate Minority Leader Chuck Schumer and House Democratic Leader Nancy Pelosi announced that a decision to push through the Bill was reached after Trump reached an agreement with congressional leaders in a meeting at the White House.
The idea to push deadline ahead by only three months was met with open criticism by members of the GOP. House Speaker Paul Ryan termed the proposition by as "ridiculous" and "unworkable." Such comments hurt the investor sentiment. The House approved almost $8 billion on Wednesday as a part of the Hurricane Harvey relief funding. However, this did not include the debt ceiling extension or provisions for government spending.
Possible Fallout of Hurricane Irma
The likelihood of a category 5 hurricane, Irma, hitting the coast of Florida this weekend has increased, according to the National Hurricane Center. The eye of the hurricane passed over the island of Barbuda on Wednesday, moving northwest toward Puerto Rico. Hurricane Irma's northern eye-wall pummeled Anguilla and is currently moving 90 miles east of San Juan, Puerto Rico.
Market watchers closely followed the hurricane and its likely fallout sent timeshare stocks lower on Wednesday. Shares of Hilton Grand Vacations HGV and Marriott International MAR declined 1.4% and 1% respectively.
Energy Shares Gained Momentum
Energy shares gained on Wednesday after oil refineries resumed action on Wednesday. Resumption of business led to increased demand for oil by the refineries thereby boosting energy shares.
Nine of the 11 main sectors of the S&P 500 ended in the green on Wednesday, with energy leading the advancers. The Energy Select Sector SPDR Fund (XLE) was up almost 1.6%. Shares of Chevron Corp. CVX and Exxon Mobil Corp. XOM gained nearly 2% on Wednesday. These gains pushed both the S&P 500 and the Dow higher. Both the companies possess a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Stanley Fischer Announces Resignation from the Fed
Federal Reserve Vice Chairman Stanley Fischer announced on Wednesday that he plans to step down from his post, citing 'personal reasons' for his decision. Fischer plans to quit in mid-October, whereas his term would have officially ended in June next year and his term as a Fed governor would have termed in early 2020.
Economists commented that Fischer's departure would raise speculations about whether Fed Chairwoman Janet Yellen would continue with her role. Moreover, market watchers would be closely watching Fed's moves as lower than targeted levels of inflation make it difficult for the central banks to raise rates. Investors also have a keen eye on European Central Bank's monetary policy meeting scheduled for Thursday.
Economic Data
Fed released its Beige book report on Wednesday. As per the report, the U.S. economy recorded a "modest to moderate" pace of growth over past few weeks. "Prices rose modestly overall across the country," the report said, indicating slow rates of inflation growth. Further, the report suggested that Fed's measure of inflation pulled back to 1.4% in July on a year over year basis, recording its slowest rate of expansion in over a year and a half. In other economic news, the ISM Services Index increased to 55.3, in line with the consensus estimate.
Stocks That Made Headlines
Hewlett Packard Q3 Earnings & Revenues Top, Shares Up
Hewlett Packard Enterprise Company HPE , yesterday, reported encouraging third-quarter fiscal 2017 results, wherein the bottom line not only came ahead of its estimates but also surpassed the Zacks Consensus Estimate. ( Read More )
Leggett Slips on Yet Another View Cut, More Downside Ahead?
Steel price volatility seems to be taking a toll on Leggett & Platt Incorporated LEG , as the company cut its 2017 outlook for the second time in less than two months. ( Read More )
Deere to Buy Blue River Technology, Adds Competitive Edge
Deere & Company DE will acquire Sunnyvale, CA-based, Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment. ( Read More )
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today. Learn more >>
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
Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
Leggett & Platt, Incorporated (LEG): Free Stock Analysis Report
Marriott International (MAR): Free Stock Analysis Report
Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): 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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Benchmarks closed higher on Wednesday after President Trump reached an agreement with key members of Congress to extend the debt ceiling deadline. Meanwhile, Fed's Vice Chairman announced his plans to retire in mid-October, citing 'personal reasons' behind his decision. The S&P 500 Index (INX) increased 0.3% to close at 2,465.54.
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Debt Ceiling Deadline to be Extended Markets closed higher on Monday after President Trump agreed with congressional leaders to support the extension of the debt ceiling deadline in order to fund a relief program to tackle the aftermath of Hurricane Harvey. Senate Minority Leader Chuck Schumer and House Democratic Leader Nancy Pelosi announced that a decision to push through the Bill was reached after Trump reached an agreement with congressional leaders in a meeting at the White House. Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report Leggett & Platt, Incorporated (LEG): Free Stock Analysis Report Marriott International (MAR): Free Stock Analysis Report Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here.
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Debt Ceiling Deadline to be Extended Markets closed higher on Monday after President Trump agreed with congressional leaders to support the extension of the debt ceiling deadline in order to fund a relief program to tackle the aftermath of Hurricane Harvey. Click to get this free report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report Leggett & Platt, Incorporated (LEG): Free Stock Analysis Report Marriott International (MAR): Free Stock Analysis Report Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Benchmarks closed higher on Wednesday after President Trump reached an agreement with key members of Congress to extend the debt ceiling deadline.
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Debt Ceiling Deadline to be Extended Markets closed higher on Monday after President Trump agreed with congressional leaders to support the extension of the debt ceiling deadline in order to fund a relief program to tackle the aftermath of Hurricane Harvey. In other economic news, the ISM Services Index increased to 55.3, in line with the consensus estimate. Benchmarks closed higher on Wednesday after President Trump reached an agreement with key members of Congress to extend the debt ceiling deadline.
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2017-09-07 00:00:00 UTC
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Deere to Buy Blue River Technology, Adds Competitive Edge
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Deere & CompanyDE will acquire Sunnyvale, CA-based, Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment, for $305 million. Per Blue River Technology, its precision farming technology can save farmers up to 90% of chemical costs used compared with more traditional approaches. This technology will provide a competitive edge to Deere which is considered a leader in precision agriculture.
Blue River's technology has aided precision agriculture by shifting farm management decisions from the field level to the plant level. Computer vision, robotics, and artificial intelligence are being used to help smart machines detect, identify, and make management decisions about every single plant in the field. For instance, Blue River's award winning "see and spray" robots affix to tractors and can precisely identify and spray chemicals only to the plants in need.
Over-relying on broadcast-spray chemicals as per traditional methods has led to herbicide tolerance in weeds which is a growing concern. Fighting these weeds impacts the crops and consequently the profitability. Blue River's technology helps cut down the chemical usage, the costly inputs used in farming, thereby enabling farmers to spend more on farming equipment. This in turn will benefit Deere.
The startup, which was founded in 2011 by two Stanford University graduates, will add to Deere a 60-person team in the heart of Silicon Valley. Deere will build upon the technology and intellectual properties developed by Blue River. The company will eventually commercialize and sell it to customers through global dealer channels. Blue River also has plans to deploy its computer-vision software in harvesting and seed planting equipment so it can adapt to variations in the size of soil clods or corn plants across a field. The transaction is anticipated to close this month.
The acquisition is in line with Deere's acquisition of NavCom Technology in 1999. NavCom systems and products use GPS satellites, communications satellites and wireless communications media for the acquisition, processing and delivery of precise positioning data. With the buyout, Deere attained a leadership position in the use of GPS technology for agriculture and accelerated machine connectivity as well as optimization.
Deere's sales in the past few years had been dented by lower farm income that impacted farmers' ability to spend on equipment. To combat the weak environment, the company had resorted to cutting back on production and layoffs. It also benefited from the adept execution of operating plans and disciplined cost management as well as the impact of a broad product portfolio. However, the scenario has improved this year. Deere expects net sales to increase about 11% year over year and projects net income to be roughly $2.075 billion in fiscal 2017. Notably, the stock has outperformed the industry in the past year. While the shares of Deere rallied 38.4%, the industry gained 35.3%.
For 2017, the USDA forecasts increase in global grain consumption for the 22nd consecutive year. The World Agriculture Supply Demand (WASD) report also projects ample supplies of corn and soybeans from large acreages. Notably, a turnaround in farm income is forecast for calendar 2017, the first increase since the peak in 2013. Meanwhile, global food and agricultural trade is still growing despite sluggish GDP growth, but the prospects are better for 2018 and 2019.
The Blue River deal highlights Deere's growing efforts to add technology to agriculture, which is the need of the hour. Deere remains optimistic about the long term, based on steady investments in new products and geographies. It expects to be profitable driven by increased global demand for food, shelter and infrastructure. Further, favorable trends derived from growing, affluent and increasing population along with rising living standards will provide ample opportunity for long-term growth.
Deere carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industrial product space include Caterpillar Inc. CAT , AGCO Corporation AGCO and Komatsu Ltd. KMTUY . All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has expected long-term earnings growth rate of 9.5%.
AGCO has expected long-term earnings growth rate of 13.5%.
Komatsu has expected long-term earnings growth rate of 12.7%.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): 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 will acquire Sunnyvale, CA-based, Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment, for $305 million. Computer vision, robotics, and artificial intelligence are being used to help smart machines detect, identify, and make management decisions about every single plant in the field. Further, favorable trends derived from growing, affluent and increasing population along with rising living standards will provide ample opportunity for long-term growth.
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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. Deere expects net sales to increase about 11% year over year and projects net income to be roughly $2.075 billion in fiscal 2017. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere & CompanyDE will acquire Sunnyvale, CA-based, Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment, for $305 million. Deere expects net sales to increase about 11% year over year and projects net income to be roughly $2.075 billion in fiscal 2017. Click to get this free report Caterpillar, Inc. (CAT): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): 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. The Blue River deal highlights Deere's growing efforts to add technology to agriculture, which is the need of the hour. Deere & CompanyDE will acquire Sunnyvale, CA-based, Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment, for $305 million.
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2017-09-07 00:00:00 UTC
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Favorable Earnings Trend Expected to Continue
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https://www.nasdaq.com/articles/favorable-earnings-trend-expected-continue-2017-09-07-0
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Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
• We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles.
• Estimates for Q3 have come down since the quarter got underway, but the magnitude of negative revisions nevertheless compares favorably to other recent periods. In other words, Q3 estimates have come down, but the extent of the decline has been modest relative to other recent comparable periods.
• Total Q3 earnings for the S&P 500 index are expected to be up +4.2% from the same period last year on +5.6% higher revenues. This would follow double-digit earnings growth in each of the preceding two quarters.
• The Q3 earnings growth drops to +2.5% (from +4.2%) when the strong Energy sector growth is excluded from the aggregate picture. Construction, Basic Materials and Conglomerates are the other sectors, in addition to Energy, with double-digit earnings growth in Q3.
• Q3 earnings growth is expected to be in negative territory for 7 of the 16 Zacks sectors, with double-digit declines for the Autos and Aerospace sectors.
• For full-year 2017, total earnings for the S&P 500 index are expected to be up +8.1% on +5% higher revenues, which would follow +0.7% earnings growth on +2.1% higher revenues in 2016. Index earnings are expected to be up +11% in 2018 and +8.8% in 2019.
• Energy growth is expected to turn positive for the small-cap S&P 600 index, with total earnings for the index expected to be up +12.8% from the same period last year on +5.1% higher revenues. This would follow persistent earnings declines for the small-cap index - S&P 600 earnings growth was negative in 3 of the last 4 quarters.
• Strong growth from the Finance, Technology and Energy sectors is driving the small-cap growth. The Finance sector's role is particularly notable in the small-cap index, with Q3 earnings growth dropping to +1.1% (from +12.8%) on an ex-Finance basis.
The chart below shows how estimates for Q3 have evolved since the start of the period.
As you can see, the current +4.2% earnings growth estimate has dropped from the +6.3% growth pace expected at the start of the period. This magnitude of decline is about in-line with the revisions trend we saw ahead of the start of the Q2 earnings season and a notable improvement over the trend we have been seeing over the last few years.
Estimates have fallen for 14 of the 16 Zacks sectors, with Energy, and Autos experiencing the most negative revisions. Estimates have gone up for the Technology and Industrial Products sectors, which can be seen in the revisions trend for operators like Caterpillar ( CAT ), Deere & Co. ( DE ), NVIDIA ( NVDA ) and others.
We have one earnings report still to go before (officially) closing the books on the Q2 earnings season, but total earnings in the quarter were up +11.6% on +6.1% higher revenues, the second quarter in a row of double-digit earnings growth for the S&P 500 index (earnings were up +13.5% in Q1). What this means is that the growth pace is steadily decelerating, as you can see in the chart below.
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.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really take off.
See Stocks Now>>
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
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles. The Finance sector's role is particularly notable in the small-cap index, with Q3 earnings growth dropping to +1.1% (from +12.8%) on an ex-Finance basis. Estimates have gone up for the Technology and Industrial Products sectors, which can be seen in the revisions trend for operators like Caterpillar ( CAT ), Deere & Co. ( DE ), NVIDIA ( NVDA ) and others.
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Estimates have gone up for the Technology and Industrial Products sectors, which can be seen in the revisions trend for operators like Caterpillar ( CAT ), Deere & Co. ( DE ), NVIDIA ( NVDA ) and others. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles.
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You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles. We have one earnings report still to go before (officially) closing the books on the Q2 earnings season, but total earnings in the quarter were up +11.6% on +6.1% higher revenues, the second quarter in a row of double-digit earnings growth for the S&P 500 index (earnings were up +13.5% in Q1). Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles. • Estimates for Q3 have come down since the quarter got underway, but the magnitude of negative revisions nevertheless compares favorably to other recent periods.
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7bf2f83b-546f-4566-910a-a7076369d345
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722261.0
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2017-09-07 00:00:00 UTC
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Favorable Earnings Trend Expected to Continue
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https://www.nasdaq.com/articles/favorable-earnings-trend-expected-continue-2017-09-07
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nan
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nan
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Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
• We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles.
• Estimates for Q3 have come down since the quarter got underway, but the magnitude of negative revisions nevertheless compares favorably to other recent periods. In other words, Q3 estimates have come down, but the extent of the decline has been modest relative to other recent comparable periods.
• Total Q3 earnings for the S&P 500 index are expected to be up +4.2% from the same period last year on +5.6% higher revenues. This would follow double-digit earnings growth in each of the preceding two quarters.
• The Q3 earnings growth drops to +2.5% (from +4.2%) when the strong Energy sector growth is excluded from the aggregate picture. Construction, Basic Materials and Conglomerates are the other sectors, in addition to Energy, with double-digit earnings growth in Q3.
• Q3 earnings growth is expected to be in negative territory for 7 of the 16 Zacks sectors, with double-digit declines for the Autos and Aerospace sectors.
• For full-year 2017, total earnings for the S&P 500 index are expected to be up +8.1% on +5% higher revenues, which would follow +0.7% earnings growth on +2.1% higher revenues in 2016. Index earnings are expected to be up +11% in 2018 and +8.8% in 2019.
• Energy growth is expected to turn positive for the small-cap S&P 600 index, with total earnings for the index expected to be up +12.8% from the same period last year on +5.1% higher revenues. This would follow persistent earnings declines for the small-cap index - S&P 600 earnings growth was negative in 3 of the last 4 quarters.
• Strong growth from the Finance, Technology and Energy sectors is driving the small-cap growth. The Finance sector's role is particularly notable in the small-cap index, with Q3 earnings growth dropping to +1.1% (from +12.8%) on an ex-Finance basis.
The chart below shows how estimates for Q3 have evolved since the start of the period.
As you can see, the current +4.2% earnings growth estimate has dropped from the +6.3% growth pace expected at the start of the period. This magnitude of decline is about in-line with the revisions trend we saw ahead of the start of the Q2 earnings season and a notable improvement over the trend we have been seeing over the last few years.
Estimates have fallen for 14 of the 16 Zacks sectors, with Energy, and Autos experiencing the most negative revisions. Estimates have gone up for the Technology and Industrial Products sectors, which can be seen in the revisions trend for operators like Caterpillar ( CAT ), Deere & Co. ( DE ), NVIDIA ( NVDA ) and others.
We have one earnings report still to go before (officially) closing the books on the Q2 earnings season, but total earnings in the quarter were up +11.6% on +6.1% higher revenues, the second quarter in a row of double-digit earnings growth for the S&P 500 index (earnings were up +13.5% in Q1). What this means is that the growth pace is steadily decelerating, as you can see in the chart below.
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.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really take off.
See Stocks Now>>
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
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles. The Finance sector's role is particularly notable in the small-cap index, with Q3 earnings growth dropping to +1.1% (from +12.8%) on an ex-Finance basis. Estimates have gone up for the Technology and Industrial Products sectors, which can be seen in the revisions trend for operators like Caterpillar ( CAT ), Deere & Co. ( DE ), NVIDIA ( NVDA ) and others.
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Estimates have gone up for the Technology and Industrial Products sectors, which can be seen in the revisions trend for operators like Caterpillar ( CAT ), Deere & Co. ( DE ), NVIDIA ( NVDA ) and others. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles.
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You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles. We have one earnings report still to go before (officially) closing the books on the Q2 earnings season, but total earnings in the quarter were up +11.6% on +6.1% higher revenues, the second quarter in a row of double-digit earnings growth for the S&P 500 index (earnings were up +13.5% in Q1). Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • We are still a few weeks away from the start of the Q3 earnings season, but early indicators are pointing to a continuation of the positive earnings trend that we saw in the last three quarterly reporting cycles. • Estimates for Q3 have come down since the quarter got underway, but the magnitude of negative revisions nevertheless compares favorably to other recent periods.
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d096e798-e633-4a09-a6eb-33b9a5862cce
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2017-09-07 00:00:00 UTC
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Top Research Reports for Comcast, Thermo Fisher & China Life Insurance
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https://www.nasdaq.com/articles/top-research-reports-comcast-thermo-fisher-china-life-insurance-2017-09-07
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Thursday, September 7, 2017
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 Comcast (CMCSA), Thermo Fisher (TMO) and China Life Insurance (LFC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Comcast' shares have gained +11.8% over the last six months, outperforming the Zacks Cable Television industry which has gained +10.7% over the same period. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
Further, the company is working towards 5G network deployment and continues to roll out its DOCSIS 3.1-based internet services to Comcast Business customers. Comcast has also forayed into the over-the-top video delivery market with the launch of its Internet TV service - Stream. Through these initiatives, Comcast aims to check customer churn and provide viewers with more streaming options.
However, tough competition, consolidation-related woes, mounting programming costs and loss of customer base act as near-term risks for Comcast. Competitive threat from online streaming service providers remains a concern.
(You can read the full research report on Comcast here >>> ) .
Shares of Buy-rated Thermo Fisher have outperformed the Zacks Medical sector (up more than +26.2% over the last one year vs +5.3%). The Zacks analyst is upbeat about the company gaining entry into the CDMO market through the recent acquistion of Patheon for $7.2 billion. A series of product launches along with major progress in precision medicine initiatives is also encouraging.
Thermo Fisher's acquisition of FEI Company has already started to boost its analytical instruments portfolio. The company also opened Center of Excellence for electron microscopy in Saudi Arabia. The raised 2017 guidance is all the more encouraging indicating the fact that this overall bullish trend will continue through the year.
(You can read the full research report on Thermo Fisher here >>> ) .
China Life Insurance 's shares have outperformed the Zacks Life Insurance industry year to date, gaining +21.8% vs. +15.8%. The Zacks analyst likes the company's robust market position and organic growth initiatives. Its operational efficiency is also reflected by its product upgrades and premium growth over the last many quarters. China Life's solid investment management also continues to impress.
The company has the most extensive distribution and service network among all insurance companies operating in China. However, it suffers from rising expenses that have been pushing the bottom line down over last few quarters. Its severe exposure to market risk is another concern. (You can read the full research report on China Life Insurance here >>> ) .
Other noteworthy reports we are featuring today include Deere (DE), DISH (DISH) and American Airlines (AAL).
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Mobile Venture Aids Comcast (CMCSA), Pay-TV Woes Remain
Thermo Fisher (TMO) Enters CDMO Space, Gains on Buyouts
China Life's (LFC) Investment Results Improve, Costs Hurt
Featured Reports
Enbridge's (ENB) C$75B Project Backlog to Offset Debt Load
The Zacks analyst believes that stable cash flow from multi-billion-dollar worth of natural gas and oil transportation project backlog will help Enbridge combat its escalating long-term debt load.
Concho's (CXO) Permian Exposure Masked by High Service Cost
While the covering analyst likes Concho Resources' large acreage position in the prolific Permian Basin, service cost inflation and lack of geographical diversification limits upside.
Wireless Spectrum Boosts DISH (DISH), Cord-Cutting Ails
Per the Zacks analyst, DISH Network should benefit from its extensive portfolio of wireless spectrum and Internet TV service - Sling TV, while it continues to lose subscribers due to cord-cutting.
Fleet Upgrade Aids American Airlines (AAL) Amid High Costs
The Zacks analyst likes the company's efforts to upgrade its fleet. Efforts to reward shareholders also raise optimism in the stock.
Acquisitions, Farm Income Aid Deere (DE), Rising Costs Hurt
The Zacks analyst lauds Deere's plans to buy Wirtgen to grow in construction and Blue River Technology to add intelligence to products.
Consistent Focus on Renewables Aids AES Corporation (AES)
The Zacks analyst believes that AES Corp.'s continuous efforts to expand its renewable assets could drive growth going forward.
Lululemon's (LULU) Online Initiatives to Augment Top Line
Per the Zacks analyst, Lululemon is keen on enhancing e-Commerce retailing channel and investing in product innovations.
New Upgrades
RH's (RH) Shift to Membership Business Model Bodes Well
The Zacks analyst stresses that RH's shift from a promotional to a membership business model has enhanced customer experience, increased brand value, improved operational execution and reduced costs.
TransUnion (TRU) Aided by Firm Demand due to Data Theft Risk
Per the Zacks analyst, TransUnion is poised for imposing growth with an attractive business model, significant operating leverage, products that shun data theft risks and strong and stable cash flows.
Higher Premiums Aid American Financial's (AFG) Earnings
Per the Zacks analyst, improving premiums, on the back of sustained operational performance, will continue to boost American Financial's earnings, thereby resulting in overall growth.
New Downgrades
Ambarella (AMBA) Hurt by Weak Drone Market, GoPro Revenues
Weakness in the drone market, declining revenue contribution from its biggest customer, GoPro, and increasing threat from QUALCOMM dampen Ambarella's growth prospects, per the Zacks analyst.
Low Rates, Legal Costs Remain Woes for Deutsche Bank (DB)
Per Zacks analyst, Deutsche Bank's revenues continue to remain under pressure due to the prevailing low rate environment in the European economy. Also, pending legal matters will keep costs elevated.
Hewlett Packard (HPE) Saddled With Pricing, Execution Issues
Per the Zacks analyst, heightened commodity pricing along with competitive pricing and execution issues will continue to negatively impact Hewlett Packard's overall performance in the near term.
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
Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report
China Life Insurance Company Limited (LFC): Free Stock Analysis Report
DISH Network Corporation (DISH): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): 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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Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun. Learn more >> Mark Vickery Senior Editor Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Mobile Venture Aids Comcast (CMCSA), Pay-TV Woes Remain Thermo Fisher (TMO) Enters CDMO Space, Gains on Buyouts China Life's (LFC) Investment Results Improve, Costs Hurt Featured Reports Enbridge's (ENB) C$75B Project Backlog to Offset Debt Load The Zacks analyst believes that stable cash flow from multi-billion-dollar worth of natural gas and oil transportation project backlog will help Enbridge combat its escalating long-term debt load.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Mobile Venture Aids Comcast (CMCSA), Pay-TV Woes Remain Thermo Fisher (TMO) Enters CDMO Space, Gains on Buyouts China Life's (LFC) Investment Results Improve, Costs Hurt Featured Reports Enbridge's (ENB) C$75B Project Backlog to Offset Debt Load The Zacks analyst believes that stable cash flow from multi-billion-dollar worth of natural gas and oil transportation project backlog will help Enbridge combat its escalating long-term debt load. Click to get this free report Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report China Life Insurance Company Limited (LFC): Free Stock Analysis Report DISH Network Corporation (DISH): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Mobile Venture Aids Comcast (CMCSA), Pay-TV Woes Remain Thermo Fisher (TMO) Enters CDMO Space, Gains on Buyouts China Life's (LFC) Investment Results Improve, Costs Hurt Featured Reports Enbridge's (ENB) C$75B Project Backlog to Offset Debt Load The Zacks analyst believes that stable cash flow from multi-billion-dollar worth of natural gas and oil transportation project backlog will help Enbridge combat its escalating long-term debt load. Click to get this free report Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report China Life Insurance Company Limited (LFC): Free Stock Analysis Report DISH Network Corporation (DISH): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
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Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun. Further, the company is working towards 5G network deployment and continues to roll out its DOCSIS 3.1-based internet services to Comcast Business customers. Comcast has also forayed into the over-the-top video delivery market with the launch of its Internet TV service - Stream.
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2017-09-06 00:00:00 UTC
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Monsanto (MON) Affiliate Divests Precision Planting Business
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https://www.nasdaq.com/articles/monsanto-mon-affiliate-divests-precision-planting-business-2017-09-06
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Monsanto Company'sMON business subsidiary - The Climate Corporation - recently divested its Precision Planting LLC equipment business to AGCO Corporation AGCO , for an undisclosed amount.
Inside Story
In 2015, Monsanto had agreed to sell its Precision Planting business to Deere & Company DE , for nearly $190 million. However, The Justice Department prosecuted to block the deal last year, due to the heightening competition in the global seed trails and agricultural chemical industry.
In late July 2017, Climate Corporation inked an agreement with AGCO to spin-off its Precision Planting business. The deal's success ensures that Precision Planting LCC will complement AGCO's equipment portfolio and assist in the development of advanced crop-yield enhancing products for farmers in the near term.
Climate Corporation is also in the process of reinforcing its global-data connectivity contract with AGCO. This agreement will ensure sound connectivity between Climate Corporation's FieldView digital agro-platform with AGCO's equipment. The deal will likely increase farmers' accessibility to useful data, which will help measure the outcomes of agronomic decisions and managing inputs.
Existing Scenario
There is an ongoing trend of consolidation in the contemporary seed, trails and agricultural chemical industry. This drift has been making matters worse for Monsanto, intensifying competitive pressure for the company. Furthermore, dismal pricing conditions in the agricultural market and foreign currency translation impact remain major causes of concern.
Nevertheless, elevating demand for crop-yield enhancing products, strong innovation and the success of Bayer AG's BAYRY buyout deal, likely to close by the end of this year, are anticipated to bolster Monsanto's top- and bottom-line performance over the long run.
Monsanto's shares have yielded a return of 9.8% compared with 7.5% growth recorded by the industry , in a year's time.
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 .
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.
See Stocks Now>>
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
Bayer AG (BAYRY): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Monsanto Company (MON): 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, The Justice Department prosecuted to block the deal last year, due to the heightening competition in the global seed trails and agricultural chemical industry. The deal's success ensures that Precision Planting LCC will complement AGCO's equipment portfolio and assist in the development of advanced crop-yield enhancing products for farmers in the near term. Nevertheless, elevating demand for crop-yield enhancing products, strong innovation and the success of Bayer AG's BAYRY buyout deal, likely to close by the end of this year, are anticipated to bolster Monsanto's top- and bottom-line performance over the long run.
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Nevertheless, elevating demand for crop-yield enhancing products, strong innovation and the success of Bayer AG's BAYRY buyout deal, likely to close by the end of this year, are anticipated to bolster Monsanto's top- and bottom-line performance over the long run. Click to get this free report Bayer AG (BAYRY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Monsanto Company (MON): Free Stock Analysis Report To read this article on Zacks.com click here. Inside Story In 2015, Monsanto had agreed to sell its Precision Planting business to Deere & Company DE , for nearly $190 million.
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Click to get this free report Bayer AG (BAYRY): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Monsanto Company (MON): Free Stock Analysis Report To read this article on Zacks.com click here. Inside Story In 2015, Monsanto had agreed to sell its Precision Planting business to Deere & Company DE , for nearly $190 million. However, The Justice Department prosecuted to block the deal last year, due to the heightening competition in the global seed trails and agricultural chemical industry.
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However, The Justice Department prosecuted to block the deal last year, due to the heightening competition in the global seed trails and agricultural chemical industry. Inside Story In 2015, Monsanto had agreed to sell its Precision Planting business to Deere & Company DE , for nearly $190 million. The deal's success ensures that Precision Planting LCC will complement AGCO's equipment portfolio and assist in the development of advanced crop-yield enhancing products for farmers in the near term.
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2017-08-28 00:00:00 UTC
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5 Crucial Takeaways From Deere & Company's Earnings
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https://www.nasdaq.com/articles/5-crucial-takeaways-deere-companys-earnings-2017-08-28
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The strong run-up in the stock price of Deere & Company (NYSE: DE) was rudely interrupted by the negative reaction to the recent third-quarter earnings report. Why did the market react like this when the company raised full-year net income guidance from $2 billion to $2.075 billion? To try answering this question, let's look at the five key takeaways from the earnings presentations.
DE data by YCharts
The guidance increase was largely down to tax and currency
As noted, net income guidance was raised, and management increased full-year net equipment sales guidance to growth of 10% from 9% previously. So what is there not to like about the guidance?
On closer inspection, the guidance increases are less impressive than they superficially appear to be:
The full-year effective tax rate is now expected to be 30%-32%, compared with 32%-34% previously, so net income will receive a boost from a non-operational line item.
Net sales guidance was increased partly because currency translation is now expected to contribute 1% to net sales, where previous guidance called for zero contribution.
Delving deeper into the results, we see that full-year sales growth guidance increased to 9% from 8% for the key agriculture and turf segment -- which accounted for 78% of total equipment sales in the first-nine months -- but this increase was due to more favorable currency movements, implying that the underlying outlook hasn't changed. On a more positive note, full-year sales guidance of 22% for the construction and forestry segment increased from 13% to 15%, in line with the more positive outlook Caterpillar recently gave.
Margin pressure and cost increases
On the earnings call, analysts questioned the margin outlook for the agriculture and turf segment. In a cyclical recovery, it's reasonable to expect significant margin expansion as sales growth kicks in, particularly with a company that has managed margin as well as Deere has during the downturn.
Credit Suisse analyst Jamie Cook was "disappointed" by the segment's margin in the quarter, and Wells Fargo Securities analyst Andrew Casey asked why the company expected a "step down" from Q3 to Q4 in comparison with the prior year.
"Material cost continues to be a headwind as we think about the fourth quarter," investor-relations director Tony Huegel replied, echoing a familiar refrain from the current earnings season. Essentially, steel and other input production costs have increased more than expected, but then again Deere isn't the only industrial company saying that at the moment.
Deere's dealing with its challenges
The next two takeaways reflect positive developments on two issues that may be concerning to Deere investors. The company has been increasing the amount of equipment it has on operating leases . That's largely because farmers have been reluctant to buy equipment outright, as their incomes have been pressured by falling crop prices. In fact, U.S. net cash farm income has fallen every year since 2013.
The fear is that a glut of used equipment will hit the market when the operating leases expire. On this front there are two pieces of relatively good news. First, the rate of growth in equipment on operating leases has slowed in 2017, as equipment sales have increased.
Second, management's commentary on used equipment inventories was positive. Focusing on large agricultural machinery -- the hardest-hit area of Deere's sales -- Huegel said: "[A]t the end of our third quarter, we're down about 37% from the peak, which would have been in summer of 2014. Last quarter, we were down about 36%, and a year ago, at this time, we were down 23%."
In a nutshell, Deere is doing a good job of reducing used inventories, and that should alleviate potential pressure from the expiration of operating leases in the future.
Outlook for crop prices
Finally, Deere chief economist J.B. Penn gave a positive description of trading conditions for crop prices. Essentially, he described an asymmetric situation whereby "recent commodity trading ranges" are expected for the future, but with potential upside from "adverse weather events" and "minimal downside risk." If true, that would be a trader's dream.
The basis of his argument is that cost structures and "market fundamentals" have laid a floor on pricing, which is good news for Deere. Meanwhile, the United States Department of Agriculture is forecasting an increase in farm income for 2017, and low-interest rates along with good credit quality are supportive of the demand environment for Deere's machinery.
Looking ahead
The lack of an increase in underlying sales guidance for the agriculture and turf segment is a disappointment, and rising costs are pressuring margin, so it's not surprising that the market took a dim view of the earnings report. On the other hand, long-term investors will be pleased by the improving end-market outlook and Deere's management of used-equipment inventories.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, the United States Department of Agriculture is forecasting an increase in farm income for 2017, and low-interest rates along with good credit quality are supportive of the demand environment for Deere's machinery. Looking ahead The lack of an increase in underlying sales guidance for the agriculture and turf segment is a disappointment, and rising costs are pressuring margin, so it's not surprising that the market took a dim view of the earnings report. The strong run-up in the stock price of Deere & Company (NYSE: DE) was rudely interrupted by the negative reaction to the recent third-quarter earnings report.
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DE data by YCharts The guidance increase was largely down to tax and currency As noted, net income guidance was raised, and management increased full-year net equipment sales guidance to growth of 10% from 9% previously. The strong run-up in the stock price of Deere & Company (NYSE: DE) was rudely interrupted by the negative reaction to the recent third-quarter earnings report. Delving deeper into the results, we see that full-year sales growth guidance increased to 9% from 8% for the key agriculture and turf segment -- which accounted for 78% of total equipment sales in the first-nine months -- but this increase was due to more favorable currency movements, implying that the underlying outlook hasn't changed.
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DE data by YCharts The guidance increase was largely down to tax and currency As noted, net income guidance was raised, and management increased full-year net equipment sales guidance to growth of 10% from 9% previously. Delving deeper into the results, we see that full-year sales growth guidance increased to 9% from 8% for the key agriculture and turf segment -- which accounted for 78% of total equipment sales in the first-nine months -- but this increase was due to more favorable currency movements, implying that the underlying outlook hasn't changed. The strong run-up in the stock price of Deere & Company (NYSE: DE) was rudely interrupted by the negative reaction to the recent third-quarter earnings report.
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DE data by YCharts The guidance increase was largely down to tax and currency As noted, net income guidance was raised, and management increased full-year net equipment sales guidance to growth of 10% from 9% previously. Looking ahead The lack of an increase in underlying sales guidance for the agriculture and turf segment is a disappointment, and rising costs are pressuring margin, so it's not surprising that the market took a dim view of the earnings report. * 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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c40e5e29-b516-4dda-b3a7-4414ef5a5058
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722265.0
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2017-08-24 00:00:00 UTC
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Why Berkshire Hathaway Won’t Pay a Dividend
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DE
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https://www.nasdaq.com/articles/why-berkshire-hathaway-wont-pay-dividend-2017-08-24
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nan
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nan
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The prevailing view of the investment community appears to be Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) will have to pay a dividend soon, as the company's cash pile nears $100 billion. Many media commentators are arguing Warren Buffett ( Trades , Portfolio ) is running out of opportunities and his cash balance is growing faster than he can spend it, which will ultimately force him to do something he has avoided throughout his career; paying a dividend.
I believe that as long as Buffett is in charge, the conglomerate will not pay a dividend to shareholders for several reasons.
Calculating cash
Buffett is the greatest capital allocator alive today, and he hates paying dividends (but he loves receiving them). It is easy to see why. Paying a dividend is a huge waste of money as it is taxed twice (once at the corporate level and then when distributed to investors). When investors receive the money, they have two choices, either find an investment that offers a similar return or spend the cash. Few other companies have been able to generate returns that match those of Berkshire Hathaway over the years. If they spend the cash, it is, well, gone.
Much of the argument for a Berkshire dividend seems to be based on the notion Buffett cannot find any investment opportunities in the current market. This may be true, but it does not mean there are no opportunities out there. Buffett has always made it clear he is willing to wait as long as necessary to gain control of a business at a reasonable price. In the next bear market, there will be many of these opportunities and, after years of cash conservation, Buffett will be well positioned to pick and choose his favorite.
Recent analysis by Bloomberg Gadfly shows there is a host of high-quality businesses Buffett could still buy. The magazine screened for companies worth more than $20 billion with net debt of less than two times EBITDA and returns on common equity exceeding 15% with operating margins above 10%. Companies with well-established brands and high returns include Deere & Co. ( DE ), Cummins Inc. ( CMI ), Rockwell Automation Inc. ( ROK ) and Monsanto Co. ( MON ). All have a price tag of less than $100 billion.
There is also the possibility Buffett could work with 3G Capital again to make an offer for an even larger target. Only six months ago, Berkshire and 3G backed Kraft Heinz Co. ( KHC ) as it tabled a $143 billion offer for UK-based consumer goods giant Unilever (UN). Over the past 12 months, Unilever has seen its market value rise by around 30%. A 20% bear market would drag the valuation down to a level where an offer of $143 billion might seem attractive.
Not an accurate reflection of liquidity
Another reason why a Berkshire dividend is unlikely is the widely quoted $100 billion cash figure is not an accurate reflection of the company's liquidity.
At the end of the second quarter, the company reported cash and cash equivalents of $20.1 billion and short-term investments in U.S. Treasury bills of $66 billion at the holding company level, a total cash balance of $86 billion. To make it up to $100 billion, commentators include the nearly $5 billion in the Railroad, Utilities and Energy division, as well as the $8.6 billion in the Finance and Financial Products division.
The cash in the railroad's division cannot really be counted toward Berkshire's war chest because these industrial divisions need capital for capital expenditures and operating expenses. Excluding this cash takes the total down to around $94.7 billion. Then there is the cash cushion of $20 billion Buffett likes to keep at all times in case of an unexpected insurance development. Stripping out this requirement leaves $74.7 billion. Other conservative estimates give Buffett a theoretical spending pot of $49.6 billion ($61.8 billion in cash linked to insurance, plus $7.9 billion from the finance and financial products minus the $20 billion cash cushion). This is still a healthy cash balance that could be used to acquire a variety of different businesses, but it is half the figure of $100 billion that is widely quoted. Acquisition targets in the region of $50 billion are plentiful. Insurance giants Prudential Financial (PRU) and MetLife (MET) both fall into this bracket.
Overall, Buffett's cash pile is not as big as many believe it to be and there are still plenty of potential acquisition targets out there for the "Oracle of Omaha." Do not hold your breath for a dividend anytime soon.
Disclosure: The author owns no stocks mentioned.
Warning! GuruFocus has detected 2 Warning Signs with FRTA. Click here to check it out.
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This article first appeared on GuruFocus .
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 media commentators are arguing Warren Buffett ( Trades , Portfolio ) is running out of opportunities and his cash balance is growing faster than he can spend it, which will ultimately force him to do something he has avoided throughout his career; paying a dividend. The magazine screened for companies worth more than $20 billion with net debt of less than two times EBITDA and returns on common equity exceeding 15% with operating margins above 10%. Companies with well-established brands and high returns include Deere & Co. ( DE ), Cummins Inc. ( CMI ), Rockwell Automation Inc. ( ROK ) and Monsanto Co. ( MON ).
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The prevailing view of the investment community appears to be Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) will have to pay a dividend soon, as the company's cash pile nears $100 billion. Not an accurate reflection of liquidity Another reason why a Berkshire dividend is unlikely is the widely quoted $100 billion cash figure is not an accurate reflection of the company's liquidity. Many media commentators are arguing Warren Buffett ( Trades , Portfolio ) is running out of opportunities and his cash balance is growing faster than he can spend it, which will ultimately force him to do something he has avoided throughout his career; paying a dividend.
|
The prevailing view of the investment community appears to be Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) will have to pay a dividend soon, as the company's cash pile nears $100 billion. Many media commentators are arguing Warren Buffett ( Trades , Portfolio ) is running out of opportunities and his cash balance is growing faster than he can spend it, which will ultimately force him to do something he has avoided throughout his career; paying a dividend. I believe that as long as Buffett is in charge, the conglomerate will not pay a dividend to shareholders for several reasons.
|
The prevailing view of the investment community appears to be Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) will have to pay a dividend soon, as the company's cash pile nears $100 billion. Many media commentators are arguing Warren Buffett ( Trades , Portfolio ) is running out of opportunities and his cash balance is growing faster than he can spend it, which will ultimately force him to do something he has avoided throughout his career; paying a dividend. I believe that as long as Buffett is in charge, the conglomerate will not pay a dividend to shareholders for several reasons.
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722266.0
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2017-08-22 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Wal-Mart, Caterpillar, Mondelez, Est??e Lauder and Deere
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-wal-mart-caterpillar-mondelez-este-lauder-and-deere
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nan
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For Immediate Release
Chicago, IL - August 22, 2017 - 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 Wal-MartWMT - Free Report ) , CaterpillarCAT - Free Report ), MondelezMDLZ - Free Report ), Estée LauderEL - Free Report ) and DeereDE - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Top Research Reports for Walmart, Caterpillar, Mondelez & More
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 Wal-Mart ( WMT - Free Report ), Caterpillar ( CAT - Free Report ) and Mondelez ( MDLZ - Free Report ). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Wal-Mart 's shares have been strong performers lately, with the stock up +10.6% over the last six months, outperforming the S&P 500's +2.9% gain in the same time period. Walmart's earnings and revenues exceeded expectations in second-quarter fiscal 2018. The company has also raised the lower end of its fiscal 2018 earnings guidance.
The Zacks analyst likes the company's efforts to boost sales, focus on building e-Commerce capabilities and forays into new markets through acquisitions. The company has posted positive comps at Walmart U.S. for 12 successive quarters.
Further, the company's acquisition of four e-Commerce businesses since the Jet.com acquisition is in line with its efforts to grow online activities. However, currency headwinds, decline in international revenues, stiff competition are serious concerns. Huge investments in e-Commerce activities leading to margin pressure is another worry.
(You can read the full research report on Wal-Mart here >>> ) .
Shares of Strong Buy-rated Caterpillar have gained +22.9% year-to-date, outperforming the Zacks Construction and Mining industry which has increased +20.4% over the same period. Caterpillar reported 12% rise in sales in July, its best performance so far in 2017 thanks to continuing improvement in Asia Pacific and a turnaround performance in Resource Industries. Caterpillar delivered better-than-expected earnings in first-half 2017 driven by cost-control actions.
The Zacks analyst thinks Asia Pacific will continue to be a catalyst for both Resource Industries as well as construction, owing to increased infrastructure and residential investment in China. Also, leading indicators of U.S. construction signal robust conditions ahead that bode well for Caterpillar. Further, efforts to reduce costs will boost margins.
(You can read the full research report on Caterpillar here >>> ) .
Mondelez shares have been weighed down recently - the stock is down -6.9% vs. -5.1% decline for the Zacks Food Miscellaneous industry in the year-to-date period. Mondelez's second-quarter 2017 earnings and revenues surpassed expectations. Mondelez's volume trends have remained weak since 2014 due to volume erosion from higher pricing and category weakness.
Emerging markets' net revenues decreased 1.5% while developed markets reported revenue decline of 7.1%. Power Brands also witnessed a 3% decline in revenues. Adjusted gross margin decreased 10 basis points or bps as strong net productivity and pricing gains were primarily offset by an unfavorable mix and higher input costs. However, adjusted operating margin increased 90 bps year over year on the back of lower selling, general and administrative costs.
(You can read the full research report on Mondelez here >>> ) .
Other noteworthy reports we are featuring today include Estée Lauder ( EL - Free Report ) and Deere ( DE - Free Report ).
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report
Mondelez International, Inc. (MDLZ): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Wal-Mart Stores, Inc. (WMT): 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 Asia Pacific will continue to be a catalyst for both Resource Industries as well as construction, owing to increased infrastructure and residential investment in China. Adjusted gross margin decreased 10 basis points or bps as strong net productivity and pricing gains were primarily offset by an unfavorable mix and higher input costs. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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Today's Research Daily features new research reports on 16 major stocks, including Wal-Mart ( WMT - Free Report ), Caterpillar ( CAT - Free Report ) and Mondelez ( MDLZ - Free Report ). Get the full Report on WMT - FREE Get the full Report on CAT - FREE Get the full Report on MDLZ - FREE Get the full Report on EL - FREE Get the full Report on DE - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): 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 Wal-Mart ( WMT - Free Report ), Caterpillar ( CAT - Free Report ) and Mondelez ( MDLZ - Free Report ). Get the full Report on WMT - FREE Get the full Report on CAT - FREE Get the full Report on MDLZ - FREE Get the full Report on EL - FREE Get the full Report on DE - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Emerging markets' net revenues decreased 1.5% while developed markets reported revenue decline of 7.1%. Stocks recently featured in the blog include Wal-MartWMT - Free Report ) , CaterpillarCAT - Free Report ), MondelezMDLZ - Free Report ), Estée LauderEL - Free Report ) and DeereDE - Free Report ). Here are highlights from Monday's Analyst Blog: Top Research Reports for Walmart, Caterpillar, Mondelez & More The Zacks Research Daily presents the best research output of our analyst team.
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722267.0
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2017-08-22 00:00:00 UTC
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Deere (DE) Poised on Farm Income Growth Amid Rising Expenses
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DE
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https://www.nasdaq.com/articles/deere-de-poised-on-farm-income-growth-amid-rising-expenses-2017-08-22
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On Aug 22, we issued an updated research report on Deere & CompanyDE , a producer and distributor of agricultural and forestry equipment, construction equipment and engines.
Deere is expected to gain from continued strength in farm income and improving construction. However, declining global grain supply use balance, unfavorable impact of raw material prices and rising expenses will hurt its performance.
In its third-quarter conference call, Deere raised total equipment sales growth outlook to about 10% year over year for fiscal 2017. It projects 24% sales growth for the fiscal fourth quarter, compared with year-ago period.
For 2017, the United States Department of Agriculture (USDA) forecasts increase in global grain consumption for the 22nd consecutive year. The World Agriculture Supply Demand (WASD) report forecasts ample supplies of corn and soybeans from large acreages. Notably, a turnaround in farm income is forecast for calendar year 2017, the first increase since the peak reached in 2013.
Meanwhile, global food and agricultural trade is growing despite sluggish GDP growth and the prospects are better for 2018 and 2019. Per the latest IMF forecast, global GDP growth is projected at around 3.6% in 2018 and 3.7% in 2019 compared with 3.5% forecast for this year. All of these factors hint at continued strength in farm income.
Deere also expects commercial and institutional construction to continue increasing moderately in fiscal 2017. Notably, machinery rental utilization rates have improved in each of the last six months and rental rates are looking up. Also, construction investment is projected to grow in fiscal 2017 by about 3% led by a rebound in oil and gas and residential activity.
However, the global grain supply use balance is tightening somewhat with consumption outpacing production for the first time since 2012. This suggests that the commodity markets might get more sensitive.
Deere expects sales to be flat to down 5% in the EU28 region in fiscal 2017 due to low commodity prices and farm income. Low crop prices and arable farm income continues to weigh on the local market.
Deere's fiscal 2017 cost of sales outlook is pegged at about 77% of net sales. Further, the company forecasts SA&G expense hike of about 11% for the full year. Most of the full-year change is expected to come from incentive compensation, voluntary separation expenses, commissions paid to dealers, acquisition-related activities and currency exchange. These expenses will hurt earnings considerably.
It should be noted that Deere has outperformed the industry in the last one year. While shares of the company have gained 32.5%, the industry gained 31.2% in the same period.
Currently, Deere carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industrial product space are Caterpillar Inc. CAT , Terex Corporation TEX and AGCO Corporation AGCO . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Caterpillar has an expected long-term growth of 9.50%.
Terex has an expected long-term growth of 19.67%.
AGCO projects long-term growth at around 13.51%.
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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
AGCO Corporation (AGCO): 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, declining global grain supply use balance, unfavorable impact of raw material prices and rising expenses will hurt its performance. Deere expects sales to be flat to down 5% in the EU28 region in fiscal 2017 due to low commodity prices and farm income. Most of the full-year change is expected to come from incentive compensation, voluntary separation expenses, commissions paid to dealers, acquisition-related activities and currency exchange.
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Deere is expected to gain from continued strength in farm income and improving construction. 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 AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. On Aug 22, we issued an updated research report on Deere & CompanyDE , a producer and distributor of agricultural and forestry equipment, construction equipment and engines.
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In its third-quarter conference call, Deere raised total equipment sales growth outlook to about 10% year over year for fiscal 2017. Deere expects sales to be flat to down 5% in the EU28 region in fiscal 2017 due to low commodity prices and farm income. 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 AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere is expected to gain from continued strength in farm income and improving construction. Deere expects sales to be flat to down 5% in the EU28 region in fiscal 2017 due to low commodity prices and farm income. On Aug 22, we issued an updated research report on Deere & CompanyDE , a producer and distributor of agricultural and forestry equipment, construction equipment and engines.
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722268.0
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2017-08-21 00:00:00 UTC
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Top Research Reports for Wal-Mart, Caterpillar & Mondelez
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https://www.nasdaq.com/articles/top-research-reports-wal-mart-caterpillar-mondelez-2017-08-21
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Monday, August 21, 2017
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 Wal-Mart (WMT), Caterpillar (CAT) and Mondelez (MDLZ). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Wal-Mart 's shares have been strong performers lately, with the stock up +10.6% over the last six months, outperforming the S&P 500's +2.9% gain in the same time period. Walmart's earnings and revenues exceeded expectations in second-quarter fiscal 2018. The company has also raised the lower end of its fiscal 2018 earnings guidance.
The Zacks analyst likes the company's efforts to boost sales, focus on building e-Commerce capabilities and forays into new markets through acquisitions. The company has posted positive comps at Walmart U.S. for 12 successive quarters.
Further, the company's acquisition of four e-Commerce businesses since the Jet.com acquisition is in line with its efforts to grow online activities. However, currency headwinds, decline in international revenues, stiff competition are serious concerns. Huge investments in e-Commerce activities leading to margin pressure is another worry.
(You can read the full research report on Wal-Mart here >>> ) .
Shares of Strong Buy-rated Caterpillar have gained +22.9% year-to-date, outperforming the Zacks Construction and Mining industry which has increased +20.4% over the same period. Caterpillar reported 12% rise in sales in July, its best performance so far in 2017 thanks to continuing improvement in Asia Pacific and a turnaround performance in Resource Industries. Caterpillar delivered better-than-expected earnings in first-half 2017 driven by cost-control actions.
The Zacks analyst thinks Asia Pacific will continue to be a catalyst for both Resource Industries as well as construction, owing to increased infrastructure and residential investment in China. Also, leading indicators of U.S. construction signal robust conditions ahead that bode well for Caterpillar. Further, efforts to reduce costs will boost margins.
(You can read the full research report on Caterpillar here >>> ) .
Mondelez shares have been weighed down recently - the stock is down -6.9% vs. -5.1% decline for the Zacks Food Miscellaneous industry in the year-to-date period. Mondelez's second-quarter 2017 earnings and revenues surpassed expectations. Mondelez's volume trends have remained weak since 2014 due to volume erosion from higher pricing and category weakness.
Emerging markets' net revenues decreased 1.5% while developed markets reported revenue decline of 7.1%. Power Brands also witnessed a 3% decline in revenues. Adjusted gross margin decreased 10 basis points or bps as strong net productivity and pricing gains were primarily offset by an unfavorable mix and higher input costs. However, adjusted operating margin increased 90 bps year over year on the back of lower selling, general and administrative costs.
(You can read the full research report on Mondelez here >>> ) .
Other noteworthy reports we are featuring today include Salesforce (CRM), Estée Lauder (EL) and Deere (DE).
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Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Higher Comps Fuels Walmart (WMT) Sales, Online Costs to Hurt
Asia, Cost Cuts Continue to Spur Caterpillar's (CAT) Growth
Mondelez (MDLZ) Strong on Cost Savings, Volume Trend Weak
Featured Reports
Easing Margin Pressure to Aid BB&T (BBT), Risky Loans a Woe
Per the Zacks analyst, the gradual ease in NIM pressure with the improvement in rates should aid BB&T's top-line growth. Yet, significant exposure to risky loan portfolios will hurt its financials.
Deere (DE) Rides on Growing Food Demand Despite Rising Costs
The Zacks analyst expects Deere to gain from solid equipment demand stemming from rise in global grain consumption. But rising cost of sales, and selling and general expenses remain headwinds.
Williams (WPZ) to Grow on Transco Expansion, Debts High
The covering analyst thinks Transco Expansion project will fetch Williams Partners with stable fee-based revenue.
PRASM Growth Buoys Delta (DAL) Amid High Labor Costs
The Zacks analyst appreciates Delta's performance with respect to Passenger revenue per available seat mile (PRASM). The metric's growth is likely to continue. Increased labor costs raise concerns.
Higher Premiums Aid Travelers' (TRV) Earnings, Cat Loss Ails
Per the Zacks analyst, improving premiums will continue to boost Travelers' earnings, thereby resulting in overall growth.
Target's (TGT) Omnichannel & Restock Program to Lift Margins
Per the Zacks analyst, Target's gross margin has been contracting for a while now. However, focus on omnichannel efforts, diversification of assortments and Restock Program should provide cushion.
Estee Lauder's (EL) Dismal Hong Kong Sales Poses Concern
Per the Zacks analyst, buyouts of BECCA and Too Faced have, however, aided top-line growth.
New Upgrades
dd's DISCOUNTS Results Aid Ross Stores' (ROST) Sales Growth
Per the Zacks analyst, strong sales and operating profits at dd's DISCOUNTS helped boost Ross Stores' sales in second-quarter fiscal 2017. The company expects this trend to continue in future.
Synopsys (SNPS) Rides on Product Launches and Acquisitions
The Zacks analyst believes that Synopsys' sustained focus on introducing products and acquisitions such as Cigital and Codiscope will continue to drive top and bottom line numbers in the long run.
Salesforce (CRM) Rides on Diverse Cloud Products & Buyouts
Salesforce's diverse cloud offerings and strategic acquisitions like Demandware and the resultant synergies are anticipated to prove conducive for growth over the long run, per the Zacks analyst.
New Downgrades
Hormel Foods (HRL) Hit by Jennie-O Turkey Store Challenges
The Zacks analyst perceives that weaker turkey prices, stiff rivalry and elevating expenses of Jennie-O Turkey Store segment will dent its near-term top- and bottom-line performances.
Lower Payroll Client Retention Hurts Paychex's (PAYX) Growth
Per the Zacks analyst, a challenging demand environment, lower client retention and political uncertainty continues to adversely impact Paychex's revenue growth in the near term.
Align's (ALGN) Business Hurt by Strong Dollar, High Expenses
The Zacks analyst believes Align's international dental business will continue to be pressed by a strong dollar. Also increased costs and expenses will dent margins in the coming quarters.
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
Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report
Mondelez International, Inc. (MDLZ): Free Stock Analysis Report
Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Salesforce.com Inc (CRM): Free Stock Analysis Report
Caterpillar, Inc. (CAT): 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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Adjusted gross margin decreased 10 basis points or bps as strong net productivity and pricing gains were primarily offset by an unfavorable mix and higher input costs. Click here for the 6 trades >> Mark Vickery Senior Editor Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. Estee Lauder's (EL) Dismal Hong Kong Sales Poses Concern Per the Zacks analyst, buyouts of BECCA and Too Faced have, however, aided top-line growth.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Comps Fuels Walmart (WMT) Sales, Online Costs to Hurt Asia, Cost Cuts Continue to Spur Caterpillar's (CAT) Growth Mondelez (MDLZ) Strong on Cost Savings, Volume Trend Weak Featured Reports Easing Margin Pressure to Aid BB&T (BBT), Risky Loans a Woe Per the Zacks analyst, the gradual ease in NIM pressure with the improvement in rates should aid BB&T's top-line growth. New Upgrades dd's DISCOUNTS Results Aid Ross Stores' (ROST) Sales Growth Per the Zacks analyst, strong sales and operating profits at dd's DISCOUNTS helped boost Ross Stores' sales in second-quarter fiscal 2017. Click to get this free report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Comps Fuels Walmart (WMT) Sales, Online Costs to Hurt Asia, Cost Cuts Continue to Spur Caterpillar's (CAT) Growth Mondelez (MDLZ) Strong on Cost Savings, Volume Trend Weak Featured Reports Easing Margin Pressure to Aid BB&T (BBT), Risky Loans a Woe Per the Zacks analyst, the gradual ease in NIM pressure with the improvement in rates should aid BB&T's top-line growth. New Upgrades dd's DISCOUNTS Results Aid Ross Stores' (ROST) Sales Growth Per the Zacks analyst, strong sales and operating profits at dd's DISCOUNTS helped boost Ross Stores' sales in second-quarter fiscal 2017. Click to get this free report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Emerging markets' net revenues decreased 1.5% while developed markets reported revenue decline of 7.1%. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Comps Fuels Walmart (WMT) Sales, Online Costs to Hurt Asia, Cost Cuts Continue to Spur Caterpillar's (CAT) Growth Mondelez (MDLZ) Strong on Cost Savings, Volume Trend Weak Featured Reports Easing Margin Pressure to Aid BB&T (BBT), Risky Loans a Woe Per the Zacks analyst, the gradual ease in NIM pressure with the improvement in rates should aid BB&T's top-line growth. Also increased costs and expenses will dent margins in the coming quarters.
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2017-08-18 00:00:00 UTC
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Why Caterpillar (CAT) is a Must-Add Stock to Your Portfolio
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https://www.nasdaq.com/articles/why-caterpillar-cat-is-a-must-add-stock-to-your-portfolio-2017-08-18
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Shares of the mining and construction equipment behemoth, Caterpillar Inc.CAT has been performing well of late. If you haven't taken advantage of the share price appreciation yet the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead. The stock has an estimated long-term earnings growth rate of 9.50%.
Favorable Zacks Rank & Score: Caterpillar sports a Zacks Rank #1 (Strong Buy) and a VGM score of B. Here V stands for Value, G for Growth and M for Momentum. Caterpillar's score is a weighted combination of these three scores (Value - B, Growth - A, Momentum - B). Such a score allows you to eliminate the negative aspects of stocks and select winners.
Solid First-Half Performance: Caterpillar has had a solid run so far in 2017 after dismal performances last year. The company delivered an upbeat second-quarter with adjusted earnings per share improving 37% while revenues improved 9.6%. This follows a stellar first-quarter wherein the company reported year-over-year improvement in both the top and bottom lines for the first time in 10 quarters. The better-than-expected results continue to be driven by its disciplined cost-control efforts. Further, Caterpillar's backlog was at $14.8 billion at the end of second-quarter 2017, a year-over-year improvement of about $3 billion.
Hiked Guidance: Owing to the upbeat first-half performance, improved order activity and disciplined cost control, Caterpillar also hiked revenue guidance during second-quarter conference call to the range of $42-$44 billion from the prior range of $38-$41 billion. The company now projects earnings per share of $5.00 per share compared with previous guidance of $3.75 per share. The mid-point of the revenue guidance and earnings per share guidance reflect a year-over-year growth of 12% and 46% respectively.
Ahead of the Industry: The company has outperformed the industry in the past one year. Shares have gained 35% while the industry registered an increase of 25.6%.
We note that the industry is also favorably placed as it occupies a space in the top 1% of the Zacks classified industries (3 out of the 256).
Estimates Northbound: Estimates for Caterpillar have moved up in the past 30 days, reflecting the optimistic outlook of analysts. The earnings estimate for fiscal 2017 has surged 22% while that of fiscal 2018 has moved up 23%.
For fiscal 2017, the Zacks Consensus Estimate for earnings is pegged at $5.22, depicting a year-over-year growth of 52.50% while the estimate for fiscal 2018 of $6.63 displays year-over-year growth of 27.14%.
Positive Earnings Surprise History: Caterpillar has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 41.43%.
Growth Drivers: Caterpillar's share price has benefited since the presidential victory of Donald Trump as investors anticipate his plans of big spending in infrastructure to boost Caterpillar's revenues which had so far borne the brunt of weak mining demand. The company will also gain from its incessant focus on cost reduction and improvement in the Asia Pacific region. In construction, Asia Pacific is showing promise while leading indicators of U.S. non-residential construction signal robust conditions ahead.
Other Stocks to Consider
Other stocks in the industrial product space include AGCO Corporation AGCO , Terex Corporation TEX and Deere & Company DE . AGCO and Terex sport the same rank as Caterpillar while Deere carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AGCO has expected long-term growth of 13.51%.
Terex has an expected long-term growth of 19.67%.
Deere & Company has an expected long-term growth of 9.17%.
4 Surprising Tech Stocks to Keep an Eye on
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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
Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
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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Hiked Guidance: Owing to the upbeat first-half performance, improved order activity and disciplined cost control, Caterpillar also hiked revenue guidance during second-quarter conference call to the range of $42-$44 billion from the prior range of $38-$41 billion. The company delivered an upbeat second-quarter with adjusted earnings per share improving 37% while revenues improved 9.6%. For fiscal 2017, the Zacks Consensus Estimate for earnings is pegged at $5.22, depicting a year-over-year growth of 52.50% while the estimate for fiscal 2018 of $6.63 displays year-over-year growth of 27.14%.
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Hiked Guidance: Owing to the upbeat first-half performance, improved order activity and disciplined cost control, Caterpillar also hiked revenue guidance during second-quarter conference call to the range of $42-$44 billion from the prior range of $38-$41 billion. Other Stocks to Consider Other stocks in the industrial product space include AGCO Corporation AGCO , Terex Corporation TEX and Deere & Company DE . 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 AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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For fiscal 2017, the Zacks Consensus Estimate for earnings is pegged at $5.22, depicting a year-over-year growth of 52.50% while the estimate for fiscal 2018 of $6.63 displays year-over-year growth of 27.14%. Other Stocks to Consider Other stocks in the industrial product space include AGCO Corporation AGCO , Terex Corporation TEX and Deere & Company DE . 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 AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company delivered an upbeat second-quarter with adjusted earnings per share improving 37% while revenues improved 9.6%. Hiked Guidance: Owing to the upbeat first-half performance, improved order activity and disciplined cost control, Caterpillar also hiked revenue guidance during second-quarter conference call to the range of $42-$44 billion from the prior range of $38-$41 billion. For fiscal 2017, the Zacks Consensus Estimate for earnings is pegged at $5.22, depicting a year-over-year growth of 52.50% while the estimate for fiscal 2018 of $6.63 displays year-over-year growth of 27.14%.
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2017-08-18 00:00:00 UTC
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Deere (DE) Beats on Q3 Earnings, Misses Sales, Raises View
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https://www.nasdaq.com/articles/deere-de-beats-on-q3-earnings-misses-sales-raises-view-2017-08-18
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Deere & Company 's DE third-quarter fiscal 2017 (ended Jul 30, 2017) earnings surged around 27% year over year to $1.97 per share. Earnings also beat the Zacks Consensus Estimate of $1.93.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $6.833 billion, jumping 17% year over year. Revenues, however, lagged the Zacks Consensus Estimate of $6.885 billion.
Price realization had an impact of 1% in the quarter. Foreign-currency rates did not have a material translation effect on net sale. Region wise, equipment net sales increased 11% in the United States and Canada, and 25% in the rest of the world. Total net sales (including financial services and others) were $7.808 billion, up 16% year over year.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote
Deere's strong results were assisted by the contribution of improving farm- and construction-equipment markets. Performance benefits from advanced products and flexible cost structure also drove growth.
Operational Update
Cost of sales in the quarter increased 17% year over year to $5.265 billion. Gross profit in the quarter came in at $1.568 billion, advancing 14.7% year over year. Selling, administrative and general expenses flared up 11.6% to $791 million. Operating profit significantly improved 18% year over year to $776.8 million.
Operating income from equipment operations jumped 27.2% year over year to $795 million, stemmed by higher shipment volumes and price realization, partially offset by elevated production costs, higher selling, administrative and general expenses and warranty costs.
Segment Performance
Agriculture & Turf segment's sales increased 13% year over year to $5.338 billion, primarily due to higher shipment volumes and price realization, partially offset by higher warranty costs. Operating profit at the segment climbed 20% year over year to $685 million, stemmed by higher shipment volumes and price realization, partially offset by escalated production costs, warranty expenses, and selling, administrative and general expenses.
Construction & Forestry sales increased 29% year over year to $1.495 billion, mainly as a result of higher shipment volumes, partially offset by higher sales-incentive expenses. The segment reported operating profit of $110 million compared with $54 million in the prior-year quarter. The upswing was driven by shipment volumes.
Net revenues at Deere's Financial Services division totaled $741 million in the reported quarter, up 11% year over year. The segment's operating profit came in at $200 million, up 5% year over year. Net income at the segment was $131.2 million, as against $125.9 million recorded in the year-earlier quarter.
Financial Update
Deere reported cash and cash equivalents of $6.537 billion at the end of the fiscal third quarter, as against $4.321 billion recorded at the end of third-quarter fiscal 2016. The company reported cash flow from operations of $729.3 million for the nine-month period ended Jul 30, 2017, compared with $1,324 million in the comparable period last year. At quarter end, long-term borrowing totaled $23.7 billion, down from $24.1 billion recorded at the end of third-quarter fiscal 2016.
Looking Ahead
Deere raised its total equipment sales growth outlook to about 10% year over year for fiscal 2017 from the prior guidance of 9% growth. It projects 24% growth for the fiscal fourth quarter, compared with year-ago period. The forecast included a positive foreign-currency translation effect of about 1% for fiscal 2017 and about 2% for the fiscal fourth quarter. For fiscal 2017, Deere expects net sales to increase about 11% year over year and projects net income to be roughly $2.075 billion.
Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 9% in fiscal 2017, including a positive currency-translation effect of about 1%. Industry sales for agricultural equipment in the United States and Canada are likely to be down about 5% in fiscal 2017 owing to weakness in the livestock sector and the lingering impact of low-crop prices. This is also expected to affect both large and small equipment.
In the EU28 region, sales will be flat to down 5% due to low commodity prices and farm income. In South America, industry sales of tractors and combines are likely to jump about 20%, on the back of improving economic and political conditions in Brazil and Argentina. Sales in Asia are projected to be flat to down slightly. Deere anticipates sales growth of turf and utility equipment in the United States and Canada to remain around flat for fiscal 2017.
The company foresees global sales for Construction & Forestry equipment to be up about 15%, with no material currency-translation impact. The forecast reflects moderate economic growth worldwide.
The outlook for net income from Financial Services has been set at $475 million for fiscal 2017. Lower losses on lease residual values will be partially offset by less-favorable financing spreads and an increased provision for credit losses.
Share Price Performance
Deere has outperformed industry with respect to price performance in the past year. The stock gained 61.1%, while the industry recorded growth of 54.3% over 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 AGCO Corp. AGCO , Apogee Enterprises, Inc. APOG and Caterpillar Inc. CAT . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AGCO has expected long-term growth rate of 13.51%.
Arista Networks has expected long-term growth rate of 12.50%.
Caterpillar has expected long-term growth rate of 9.50%.
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without.
See Stocks Now>>
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
Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
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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Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 9% in fiscal 2017, including a positive currency-translation effect of about 1%. Deere & Company 's DE third-quarter fiscal 2017 (ended Jul 30, 2017) earnings surged around 27% year over year to $1.97 per share. Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Deere's strong results were assisted by the contribution of improving farm- and construction-equipment markets.
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Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company 's DE third-quarter fiscal 2017 (ended Jul 30, 2017) earnings surged around 27% year over year to $1.97 per share. Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Deere's strong results were assisted by the contribution of improving farm- and construction-equipment markets.
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Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company 's DE third-quarter fiscal 2017 (ended Jul 30, 2017) earnings surged around 27% year over year to $1.97 per share. Deere & Company Price, Consensus and EPS Surprise Deere & Company Price, Consensus and EPS Surprise | Deere & Company Quote Deere's strong results were assisted by the contribution of improving farm- and construction-equipment markets.
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For fiscal 2017, Deere expects net sales to increase about 11% year over year and projects net income to be roughly $2.075 billion. Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 9% in fiscal 2017, including a positive currency-translation effect of about 1%. Deere & Company 's DE third-quarter fiscal 2017 (ended Jul 30, 2017) earnings surged around 27% year over year to $1.97 per share.
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2017-08-18 00:00:00 UTC
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Deere Stock Downgraded Twice in 4 Days: What You Need to Know
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https://www.nasdaq.com/articles/deere-stock-downgraded-twice-4-days-what-you-need-know-2017-08-18
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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...
It's been a rough week for Deere (NYSE: DE) investors -- and this morning's earnings beat isn't helping.
So far, from Monday's close to Friday's opening, Deere stock has sunk 10%, and lost about $4 billion in market cap. This was despite an above-average earnings report this morning, in which Deere beat expectations for both sales and profits -- and raised guidance, to boot. Regardless, Wall Street has been busily downgrading the stock, both before and after the earnings came out.
Here are three things you need to know about that.
1. Before earnings: Merrill Lynch issues a warning
The bad news started arriving early -- three days before earnings in fact, when Merrill Lynch announced it was downgrading Deere stock to neutral and assigning a $145 price target to the stock. In a write-up on Tuesday, TheFly.com reported on Merrill's worries that "high horse power tractor demand fell 22% in July and Brazilian combine demand fell 27%." Absent "better grain fundamentals" in late 2018 into 2019, the analyst is worried that Deere's sales revival could short-circuit.
Although Deere has been beating earnings lately (in each of the past four quarters, in fact), the size of the beats has been shrinking, and Merrill warned that in its view, "outperformance relative to investor expectations may begin to subside."
2. Earnings: What Deere said
Which is pretty much how things played out. After beating earnings expectations by 65% in its July quarter, and by 125% in the October quarter, Deere's earnings beats in Q1 and Q2 of this fiscal year were by only 11% and 48%, respectively. Then came this morning.
Deere reported profits per diluted share of $1.97 for its fiscal third quarter 2017. These earnings were up 27% year over year, which is undeniably good. Problem is, Wall Street had already been expecting Deere to report $1.95 per share. So while Deere beat expectations, it earned only 1% more than Wall Street had already predicted it would earn.
Or as Merrill might put it: Its outperformance relative to investor expectations subsided almost to zero.
3. After earnings: What Baird is saying now
Which brings us to today, when we see investment banker R.W. Baird announcing yet another downgrade of Deere stock (also to neutral, with a lower price target of $130).
As reported by StreetInsider.com (requires subscription), Baird acknowledges that Deere had a fine third fiscal quarter. Sales were up 16% year over year, and profits up 27%, indicating strong operating leverage (Deere has high fixed costs, such that revenue just insufficient to cover its costs will produce a loss, while revenue in excess of its costs yields profits that grow disproportionately as revenue grows). Baird also acknowledged that Deere raised guidance for the rest of the year, indicating that business is improving.
Equipment sales are expected to be up 24% year over year in Q4 2017, helping Deere to book a 10% gain in equipment revenue for the year, and an overall sales gain of 11%. Thus, Deere seems to be predicting its sales this year should be in the neighborhood of $29.5 billion -- far more than the $25.5 billion in sales that Wall Street is still expecting.
Deere furthermore predicted that its net income for the year will be about $2.075 billion, which divided among the company's 319.86 million shares outstanding should work out to $6.49 per share -- again superior to the $6.42 per share projected by Wall Street analysts.
What it means to investors
So how are we to make sense of this? Deere beat on earnings last quarter, and beat even more soundly on sales. It benefits from strong operating leverage, such that big sales should yield even bigger profits -- and indeed, Deere's guidance for the final quarter of this year appears to foreshadow another big sales beat in Q4 (and a smaller beat on earnings).
This, though, I fear, is precisely the problem: Deere's sales are soaring, and its profits are growing. But Wall Street was already expecting this. Deere is promising 35% earnings growth for this full year, but because Wall Street was already looking for earnings to grow 33.5%, the analysts are becoming harder to impress -- and a 1.5% beat on earnings may not be big enough "relative to investor expectations" to make investors remain willing to pay more than 20 times earnings for what is, after all, a cyclical stock .
With worries about weakening tractor and combine demand looming, and "farm fundamentals remain[ing] weak" (as Baird laments), Deere is going to have to do even better in fiscal 2018 if it wants to turn these analyst downgrades into analyst upgrades again .
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Rich Smith has no position in any 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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It's been a rough week for Deere (NYSE: DE) investors -- and this morning's earnings beat isn't helping. So far, from Monday's close to Friday's opening, Deere stock has sunk 10%, and lost about $4 billion in market cap. This was despite an above-average earnings report this morning, in which Deere beat expectations for both sales and profits -- and raised guidance, to boot.
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Before earnings: Merrill Lynch issues a warning The bad news started arriving early -- three days before earnings in fact, when Merrill Lynch announced it was downgrading Deere stock to neutral and assigning a $145 price target to the stock. In a write-up on Tuesday, TheFly.com reported on Merrill's worries that "high horse power tractor demand fell 22% in July and Brazilian combine demand fell 27%." Sales were up 16% year over year, and profits up 27%, indicating strong operating leverage (Deere has high fixed costs, such that revenue just insufficient to cover its costs will produce a loss, while revenue in excess of its costs yields profits that grow disproportionately as revenue grows).
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Before earnings: Merrill Lynch issues a warning The bad news started arriving early -- three days before earnings in fact, when Merrill Lynch announced it was downgrading Deere stock to neutral and assigning a $145 price target to the stock. After beating earnings expectations by 65% in its July quarter, and by 125% in the October quarter, Deere's earnings beats in Q1 and Q2 of this fiscal year were by only 11% and 48%, respectively. Deere is promising 35% earnings growth for this full year, but because Wall Street was already looking for earnings to grow 33.5%, the analysts are becoming harder to impress -- and a 1.5% beat on earnings may not be big enough "relative to investor expectations" to make investors remain willing to pay more than 20 times earnings for what is, after all, a cyclical stock .
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This was despite an above-average earnings report this morning, in which Deere beat expectations for both sales and profits -- and raised guidance, to boot. So while Deere beat expectations, it earned only 1% more than Wall Street had already predicted it would earn. With worries about weakening tractor and combine demand looming, and "farm fundamentals remain[ing] weak" (as Baird laments), Deere is going to have to do even better in fiscal 2018 if it wants to turn these analyst downgrades into analyst upgrades again .
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2017-08-18 00:00:00 UTC
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Why Nike, Deere, and Matson Slumped Today
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Friday was a tumultuous end to a tough week, as many investors focused on the ongoing political shakeup at the White House. Chief strategist Stephen Bannon left his role with the Trump administration, and market participants appear to be increasingly nervous about the prospects for progress on key initiatives like tax reform, infrastructure spending, and healthcare policy. Major benchmarks didn't make significant moves, but their failure to bounce back from Thursday's big drop was a departure from the bull market's behavior lately. Adding to the gloom was bad news from several individual companies, and Nike (NYSE: NKE) , Deere (NYSE: DE) , and Matson (NYSE: MATX) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Nike watches the other shoe drop
Shares of Nike fell 4% after sales results at major shoe retailers indicated a loss of demand for premium athletic footwear. Both Foot Locker and Hibbett Sports reported disappointing results , piling on after other sporting goods retailers suggested similar issues for the industry. One retailer's management said that sales of top styles in footwear and apparel didn't live up to expectations, complaining that providers like Nike were responsible for "limited availability of innovative new products in the market." Nike bulls hope that the slump at third-party retailers reflects a shift toward direct-to-consumer channels that the athletic giant has established, but shareholders won't know for sure until Nike releases its own results.
Deere gets another downgrade
Deere stock fell 5% in the wake of more negative comments from analysts. Today's downgrade came from R.W. Baird , which cut its rating on the farm equipment specialist from outperform to neutral and cut its price target on the stock by $10 to $130 per share. Analysts acknowledged solid performance in Deere's most recent quarterly report, but they believe that weakness in the agricultural sector will make it more difficult for the company to keep up its pace of growth going into fiscal 2018. Even with today's losses, Deere stock is up by more than half since mid-2016, and investors can expect to see more cyclical ups and downs in the future.
Competition runs Matson aground
Finally, shares of Matson plunged 22%. The shipping company has historically benefited from a lack of competition in key trade routes in the Pacific region, especially between various ports on the West Coast of the continental U.S. and the Hawaiian Islands. However, a new competitor has emerged that could take away Matson's dominance of those key markets, with plans to acquire newly built shipping vessels in 2020 and 2021. Even though that leaves time for Matson to enjoy its current position, investors worry that an eventual drop in market share could hurt the company. Some saw today's move as an overreaction , but only time will tell whether Matson can withstand new competitive pressures.
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Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Nike. 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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One retailer's management said that sales of top styles in footwear and apparel didn't live up to expectations, complaining that providers like Nike were responsible for "limited availability of innovative new products in the market." Analysts acknowledged solid performance in Deere's most recent quarterly report, but they believe that weakness in the agricultural sector will make it more difficult for the company to keep up its pace of growth going into fiscal 2018. Major benchmarks didn't make significant moves, but their failure to bounce back from Thursday's big drop was a departure from the bull market's behavior lately.
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Nike watches the other shoe drop Shares of Nike fell 4% after sales results at major shoe retailers indicated a loss of demand for premium athletic footwear. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. Major benchmarks didn't make significant moves, but their failure to bounce back from Thursday's big drop was a departure from the bull market's behavior lately.
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Nike watches the other shoe drop Shares of Nike fell 4% after sales results at major shoe retailers indicated a loss of demand for premium athletic footwear. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. Major benchmarks didn't make significant moves, but their failure to bounce back from Thursday's big drop was a departure from the bull market's behavior lately.
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Deere gets another downgrade Deere stock fell 5% in the wake of more negative comments from analysts. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. Major benchmarks didn't make significant moves, but their failure to bounce back from Thursday's big drop was a departure from the bull market's behavior lately.
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2017-08-18 00:00:00 UTC
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S&P 500 Movers: FL, ROST
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https://www.nasdaq.com/articles/sp-500-movers-fl-rost-2017-08-18
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In early trading on Friday, shares of Ross Stores ( ROST ) topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. Year to date, Ross Stores has lost about 9.9% of its value.
And the worst performing S&P 500 component thus far on the day is Foot Locker ( FL ), trading down 24.4%. Foot Locker is lower by about 49.1% looking at the year to date performance.
Two other components making moves today are Deere & Co. ( DE ), trading down 8.5%, and Estee Lauder Cos. ( EL ), trading up 5.5% on the day.
VIDEO: S&P 500 Movers: FL, ROST
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 early trading on Friday, shares of Ross Stores ( ROST ) topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. Two other components making moves today are Deere & Co. ( DE ), trading down 8.5%, and Estee Lauder Cos. ( EL ), trading up 5.5% on the day. VIDEO: S&P 500 Movers: FL, ROST 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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VIDEO: S&P 500 Movers: FL, ROST The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Ross Stores ( ROST ) topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. Two other components making moves today are Deere & Co. ( DE ), trading down 8.5%, and Estee Lauder Cos. ( EL ), trading up 5.5% on the day.
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In early trading on Friday, shares of Ross Stores ( ROST ) topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. VIDEO: S&P 500 Movers: FL, ROST The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Two other components making moves today are Deere & Co. ( DE ), trading down 8.5%, and Estee Lauder Cos. ( EL ), trading up 5.5% on the day.
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In early trading on Friday, shares of Ross Stores ( ROST ) topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. VIDEO: S&P 500 Movers: FL, ROST The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Two other components making moves today are Deere & Co. ( DE ), trading down 8.5%, and Estee Lauder Cos. ( EL ), trading up 5.5% on the day.
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2017-08-18 00:00:00 UTC
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Retail Q2 Earnings Sweep-Up: FL, EL & DE
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Friday, August 18th, 2017
Most of the big players have already reported earnings this season, but the Retail group is still be heard from, both this morning and through most of next week. Here are a few companies making headlines in today's pre-market, all of which indexes are moderately in the green at this hour after a rough Thursday sell-off.
Foot Locker FL is hitting the skids in today's pre-market following its Q2 earnings results that came in far lower than expected on both the top and bottom lines. Earnings of 62 cents per share missed the 90 cents in the Zacks consensus, while revenues of $1.70 billion underperformed the $1.81 we were looking for and were down 4.3% year over year. Foot Locker's previous 4 quarters had all produced modest positive surprises.
This time around, same-store sales fell 6%, whereas analysts had expected 9% gains in comps. Foot Locker shares are down more than 20% in today's pre-market at this hour, and shares of Foot Locker suppliers Nike NKE and UnderArmour UAA are also falling this morning.
Estee Lauder EL outperformed expectations in its Q2 earnings report before today's opening bell, posting 51 cents per share versus 43 cents in the Zacks consensus, up 25% year over year. Quarterly sales of $2.89 billion topped the $2.85 billion expected, up 11% year over year. Acquired brands Too Faced and BECCA boosted growth for the Zacks Rank #2 (Buy)-rated beauty giant, and shares are up 4% in the pre-market at this hour.
Zacks Rank #2 (Buy)-rated tractor maker Deere & Company DE also beat estimates on its bottom line this morning to $1.97 per share from the $1.93 expected, up 27% year over year. Revenues in the quarter missed the mark, however, bringing in $6.83 billion as opposed to the $6.89 billion anticipated. Shares are down more than 6% in today's pre-market following these mixed results, but consider this stock has risen 20% so far in 2017.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
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Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report
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Under Armour, Inc. (UAA): 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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Here are a few companies making headlines in today's pre-market, all of which indexes are moderately in the green at this hour after a rough Thursday sell-off. Earnings of 62 cents per share missed the 90 cents in the Zacks consensus, while revenues of $1.70 billion underperformed the $1.81 we were looking for and were down 4.3% year over year. Foot Locker's previous 4 quarters had all produced modest positive surprises.
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Estee Lauder EL outperformed expectations in its Q2 earnings report before today's opening bell, posting 51 cents per share versus 43 cents in the Zacks consensus, up 25% year over year. Click to get this free report Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Foot Locker, Inc. (FL): Free Stock Analysis Report Nike, Inc. (NKE): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis Report To read this article on Zacks.com click here. Here are a few companies making headlines in today's pre-market, all of which indexes are moderately in the green at this hour after a rough Thursday sell-off.
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Foot Locker shares are down more than 20% in today's pre-market at this hour, and shares of Foot Locker suppliers Nike NKE and UnderArmour UAA are also falling this morning. Estee Lauder EL outperformed expectations in its Q2 earnings report before today's opening bell, posting 51 cents per share versus 43 cents in the Zacks consensus, up 25% year over year. Click to get this free report Estee Lauder Companies, Inc. (The) (EL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Foot Locker, Inc. (FL): Free Stock Analysis Report Nike, Inc. (NKE): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis Report To read this article on Zacks.com click here.
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Foot Locker shares are down more than 20% in today's pre-market at this hour, and shares of Foot Locker suppliers Nike NKE and UnderArmour UAA are also falling this morning. Zacks Rank #2 (Buy)-rated tractor maker Deere & Company DE also beat estimates on its bottom line this morning to $1.97 per share from the $1.93 expected, up 27% year over year. Here are a few companies making headlines in today's pre-market, all of which indexes are moderately in the green at this hour after a rough Thursday sell-off.
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2017-08-18 00:00:00 UTC
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3 Big Stock Charts for Friday: Deere & Company (DE), SPDR S&P 500 ETF Trust (SPY) and Facebook Inc (FB)
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The politically charged environment took stocks for a ride yesterday, posting their worst one-day move (according to the S&P 500 Index ) in more than three months. The sharp decline has some traders looking for cover, which may have a ripple effect on the markets.
Today's three big stock charts will look at the technical picture for the SPDR S&P 500 ETF Trust (NYSEARCA: SPY ), Deere & Company (NYSE: DE ) and Facebook Inc (NASDAQ: FB ) as these three charts have implications on the next tradable move for the majority of stocks.
SPDR S&P 500 ETF Trust (SPY)
The market has been teasing traders with the notion that there was a correction in the making as seasonality and a few other factors have been tugging stocks lower. Yesterday's drop in prices may be the tipping point for the broad market S&P 500 that puts the market on the defensive for the next four to six weeks. A look at the SPY charts will show why:
From a breadth perspective, the percentage of companies in the S&P 500 that are trading above their respective 50-day moving average dropped below 50% more than a week ago. This identifies a weakening of the market's breadth that typically precedes a dramatic shift lower for the market.
Yesterday, SPY shares made their most dramatic move below the 50-day moving average since April. It will be critical to see the shares move back above this trendline, currently at $244.60 for the market to have a chance of maintaining a trading range environment, at-best.
The SPDR S&P 500 ETF has seen two breaks below its lower Bollinger Band in the last week. This normally happens just before a volatility sell-off that often follows within a week of the second break.
We expect to see a "relief" rally from Thursday's selling on Friday, but traders are more likely to return to the market on Monday in a selling mood, targeting a move to $239 on SPY.
Deere & Company (DE)
The machinery manufacturer came out with earnings ahead of the open today and the results weren't what traders wanted to see. DE beat earnings-per-share estimates while missing their revenue target. Yesterday, Deere stock made a preemptive move that indicates a shift in the stock that the bulls won't like.
Deere & Company shares shaved through their lower Bollinger Band on Thursday, indicating that traders were already getting out of the stock ahead of the earnings report. This morning's move will worsen, but there's an upside.
DE stock had been "pre-sold" ahead of earnings, indicating that the market was "selling the rumor" on Deere & Company. This means the stock is likely to see a short-term bounce after some selling.
Chart support lies at $114 for DE stock. At this price point, the stock will have also triggered a technically oversold signal that will lure technical "value" buyers into the mix. We will expect a short-term opportunity for bullish traders at that price level.
Facebook Inc (FB)
We've been referring to FB as one of the "canary in the coalmine" stocks as it has been a relative strength leader.
Could the "New" Rite Aid Corporation (RAD) Go Broke?
Given this, it's time to be concerned when the leadership starts to breakdown as Facebook appears to be threatening to do.
FB shares have been consolidating in a range for the last three weeks and trying to maintain a price above $167, which the stock has established as the bottom of this range. Yesterday's selling cracked that price. Failure to move back into the range today will draw more selling.
It is normal for Facebook shares to trade in a range after hitting a technically overbought reading of its RSI, as it did a few weeks ago. In this case though, the momentum as indicated by the stock's MACD is more aggressively deteriorating.
We're likely to see FB shares decline to support at their 50-day moving average, currently at $160. From there, a technical test that will determine how the next 5-10% move in the stock will happen and we'll be sure to alert you on the outlook from there.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
More From InvestorPlace
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The post 3 Big Stock Charts for Friday: Deere & Company (DE), SPDR S&P 500 ETF Trust (SPY) and Facebook Inc (FB) 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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SPDR S&P 500 ETF Trust (SPY) The market has been teasing traders with the notion that there was a correction in the making as seasonality and a few other factors have been tugging stocks lower. Deere & Company shares shaved through their lower Bollinger Band on Thursday, indicating that traders were already getting out of the stock ahead of the earnings report. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The politically charged environment took stocks for a ride yesterday, posting their worst one-day move (according to the S&P 500 Index ) in more than three months.
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Today's three big stock charts will look at the technical picture for the SPDR S&P 500 ETF Trust (NYSEARCA: SPY ), Deere & Company (NYSE: DE ) and Facebook Inc (NASDAQ: FB ) as these three charts have implications on the next tradable move for the majority of stocks. Deere & Company shares shaved through their lower Bollinger Band on Thursday, indicating that traders were already getting out of the stock ahead of the earnings report. More From InvestorPlace 10 Dogs of 2017 That Will Become 2018's Best Stocks to Buy The 7 Best Dow Jones Stocks to Buy Right Now 7 Companies Warren Buffett Should Buy Now The post 3 Big Stock Charts for Friday: Deere & Company (DE), SPDR S&P 500 ETF Trust (SPY) and Facebook Inc (FB) appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The politically charged environment took stocks for a ride yesterday, posting their worst one-day move (according to the S&P 500 Index ) in more than three months. Today's three big stock charts will look at the technical picture for the SPDR S&P 500 ETF Trust (NYSEARCA: SPY ), Deere & Company (NYSE: DE ) and Facebook Inc (NASDAQ: FB ) as these three charts have implications on the next tradable move for the majority of stocks. More From InvestorPlace 10 Dogs of 2017 That Will Become 2018's Best Stocks to Buy The 7 Best Dow Jones Stocks to Buy Right Now 7 Companies Warren Buffett Should Buy Now The post 3 Big Stock Charts for Friday: Deere & Company (DE), SPDR S&P 500 ETF Trust (SPY) and Facebook Inc (FB) appeared first on InvestorPlace .
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Today's three big stock charts will look at the technical picture for the SPDR S&P 500 ETF Trust (NYSEARCA: SPY ), Deere & Company (NYSE: DE ) and Facebook Inc (NASDAQ: FB ) as these three charts have implications on the next tradable move for the majority of stocks. We're likely to see FB shares decline to support at their 50-day moving average, currently at $160. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The politically charged environment took stocks for a ride yesterday, posting their worst one-day move (according to the S&P 500 Index ) in more than three months.
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2017-08-18 00:00:00 UTC
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Morning Movers: Foot Locker Flops, Deere Drops, Estee Lauder Leaps
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Stocks look set to open higher following yesterday's selloff.
Getty Images
S&P 500 futures have advanced 0.1%, while Dow Jones Industrial Average futures have risen 0.1%. Nasdaq Composite futures have gained 0.3%.
Peabody Energy (BTU) has declined 1.6% to $27.50 after pricing a secondary offering.
Deere (DE) has dropped 5% to $117.80 after a sales miss trumped an earnings beat.
Estee Lauder (EL) has gained 4.2% to $102.40 after beating earnings and sales forecasts and offering upbeat guidance.
Foot Locker (FL) has plunged 18% to $38.90 after its earnings and sales missed Street expectations, and same-store sales dropped 6%, missing forecasts for a 0.8% gain.
Gap (GPS) has climbed 4.9% to $23.80 after beating earnings forecasts and offering upbeat guidance.
Hibbett Sports (HIBB) has tumbled 7.4% to $10.65 after missing sales forecasts and cutting its full-year guidance.
Ross Stores (ROST) has jumped 9.7% to $58.50 after beating earnings and sales forecasts.
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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Estee Lauder (EL) has gained 4.2% to $102.40 after beating earnings and sales forecasts and offering upbeat guidance. Peabody Energy (BTU) has declined 1.6% to $27.50 after pricing a secondary offering. Deere (DE) has dropped 5% to $117.80 after a sales miss trumped an earnings beat.
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Estee Lauder (EL) has gained 4.2% to $102.40 after beating earnings and sales forecasts and offering upbeat guidance. Peabody Energy (BTU) has declined 1.6% to $27.50 after pricing a secondary offering. Deere (DE) has dropped 5% to $117.80 after a sales miss trumped an earnings beat.
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Estee Lauder (EL) has gained 4.2% to $102.40 after beating earnings and sales forecasts and offering upbeat guidance. Peabody Energy (BTU) has declined 1.6% to $27.50 after pricing a secondary offering. Deere (DE) has dropped 5% to $117.80 after a sales miss trumped an earnings beat.
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Peabody Energy (BTU) has declined 1.6% to $27.50 after pricing a secondary offering. Estee Lauder (EL) has gained 4.2% to $102.40 after beating earnings and sales forecasts and offering upbeat guidance. Deere (DE) has dropped 5% to $117.80 after a sales miss trumped an earnings beat.
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Pre-Market Most Active for Aug 18, 2017 : CPN, FL, INFY, TVIX, QQQ, BABA, DE, XIV, AMAT, DB, SBRA, AAPL
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The NASDAQ 100 Pre-Market Indicator is up 16.58 to 5,812.9. The total Pre-Market volume is currently 34,391,150 shares traded.
The following are the most active stocks for the pre-market session :
Calpine Corporation ( CPN ) is +1.35 at $14.85, with 28,953,701 shares traded. As reported by Zacks, the current mean recommendation for CPN is in the "buy range".
Foot Locker, Inc. ( FL ) is -10.51 at $37.19, with 1,610,776 shares traded. Reuters Reports: U.S. STOCKS ON THE MOVE-Deere, Estee Lauder, Foot Locker, Gap
Infosys Limited ( INFY ) is -0.98 at $14.95, with 550,840 shares traded. INFY's current last sale is 94.92% of the target price of $15.75.
VelocityShares Daily 2x VIX Short-Term ETN ( TVIX ) is -2.23 at $20.05, with 414,025 shares traded. This represents a 29.86% increase from its 52 Week Low.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.61 at $141.94, with 356,813 shares traded. This represents a 25.11% increase from its 52 Week Low.
Alibaba Group Holding Limited ( BABA ) is +1.98 at $165.90, with 348,545 shares traded., following a 52-week high recorded in prior regular session.
Deere & Company ( DE ) is -8.32 at $115.66, with 255,308 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2017. The consensus EPS forecast is $1.93. RTT News Reports: Deere And Co Q3 17 Earnings Conference Call At 10:00 AM ET
VelocityShares Daily Inverse VIX Short-Term ETN ( XIV ) is +4.11 at $75.61, with 226,692 shares traded. This represents a 149.7% increase from its 52 Week Low.
Applied Materials, Inc. ( AMAT ) is +1.63 at $44.75, with 180,124 shares traded. As reported by Zacks, the current mean recommendation for AMAT is in the "buy range".
Deutsche Bank AG ( DB ) is +0.09 at $16.53, with 173,505 shares traded. DB's current last sale is 126.18% of the target price of $13.1.
Sabra Healthcare REIT, Inc. ( SBRA ) is unchanged at $21.18, with 128,444 shares traded. SBRA's current last sale is 78.44% of the target price of $27.
Apple Inc. ( AAPL ) is +1.01 at $158.87, with 127,276 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2017. The consensus EPS forecast is $1.87. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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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Reuters Reports: U.S. STOCKS ON THE MOVE-Deere, Estee Lauder, Foot Locker, Gap Infosys Limited ( INFY ) is -0.98 at $14.95, with 550,840 shares traded. Alibaba Group Holding Limited ( BABA ) is +1.98 at $165.90, with 348,545 shares traded., following a 52-week high recorded in prior regular session. RTT News Reports: Deere And Co Q3 17 Earnings Conference Call At 10:00 AM ET VelocityShares Daily Inverse VIX Short-Term ETN ( XIV ) is +4.11 at $75.61, with 226,692 shares traded.
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VelocityShares Daily 2x VIX Short-Term ETN ( TVIX ) is -2.23 at $20.05, with 414,025 shares traded. RTT News Reports: Deere And Co Q3 17 Earnings Conference Call At 10:00 AM ET VelocityShares Daily Inverse VIX Short-Term ETN ( XIV ) is +4.11 at $75.61, with 226,692 shares traded. The total Pre-Market volume is currently 34,391,150 shares traded.
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The following are the most active stocks for the pre-market session : Calpine Corporation ( CPN ) is +1.35 at $14.85, with 28,953,701 shares traded. Reuters Reports: U.S. STOCKS ON THE MOVE-Deere, Estee Lauder, Foot Locker, Gap Infosys Limited ( INFY ) is -0.98 at $14.95, with 550,840 shares traded. RTT News Reports: Deere And Co Q3 17 Earnings Conference Call At 10:00 AM ET VelocityShares Daily Inverse VIX Short-Term ETN ( XIV ) is +4.11 at $75.61, with 226,692 shares traded.
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The following are the most active stocks for the pre-market session : Calpine Corporation ( CPN ) is +1.35 at $14.85, with 28,953,701 shares traded. The total Pre-Market volume is currently 34,391,150 shares traded. Foot Locker, Inc. ( FL ) is -10.51 at $37.19, with 1,610,776 shares traded.
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b48c458c-e1ee-4a24-a1f1-3e347f92e78b
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722278.0
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2017-08-18 00:00:00 UTC
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DE Crosses Above 2% Yield Territory
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DE
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https://www.nasdaq.com/articles/de-crosses-above-2-yield-territory-2017-08-18
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $112.87 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF ( SPY ) back on 12/31/1999 - you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 2% would appear considerably attractive if that yield is sustainable. Deere & Co. (Symbol: DE) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Deere & Co., looking at the history chart for DE below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield.
According to the ETF Finder at ETF Channel, DE makes up 8.70% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.6% on the day Friday.
Click here to find out which 9 other dividend stocks just recently went on sale »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $112.87 on the day. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $112.87 on the day. Click here to find out which 9 other dividend stocks just recently went on sale » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $112.87 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. Click here to find out which 9 other dividend stocks just recently went on sale » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of Deere & Co. (Symbol: DE) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $112.87 on the day. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 2% would appear considerably attractive if that yield is sustainable. According to the ETF Finder at ETF Channel, DE makes up 8.70% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.6% on the day Friday.
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76fadbe2-a80b-4dc4-85ed-d586934a16ba
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722279.0
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2017-08-18 00:00:00 UTC
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Friday's ETF with Unusual Volume: XMX
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DE
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https://www.nasdaq.com/articles/fridays-etf-unusual-volume-xmx-2017-08-18
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nan
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nan
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The WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Friday, with over 900,000 shares traded versus three month average volume of about 44,000. Shares of XMX were down about 1.8% on the day.
Components of that ETF with the highest volume on Friday were Bank of America ( BAC ), trading up about 0.8% with over 36.5 million shares changing hands so far this session, and Ford Motor ( F ), off about 0.4% on volume of over 26.2 million shares. Ross Stores ( ROST ) is the component faring the best Friday, higher by about 9.6% on the day, while Deere ( DE ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 4.9%.
VIDEO: Friday's ETF with Unusual Volume: XMX
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 WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Friday, with over 900,000 shares traded versus three month average volume of about 44,000. Ross Stores ( ROST ) is the component faring the best Friday, higher by about 9.6% on the day, while Deere ( DE ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 4.9%. VIDEO: Friday's ETF with Unusual Volume: XMX 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 WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Friday, with over 900,000 shares traded versus three month average volume of about 44,000. Ross Stores ( ROST ) is the component faring the best Friday, higher by about 9.6% on the day, while Deere ( DE ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 4.9%. VIDEO: Friday's ETF with Unusual Volume: XMX 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 WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Friday, with over 900,000 shares traded versus three month average volume of about 44,000. VIDEO: Friday's ETF with Unusual Volume: XMX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Ross Stores ( ROST ) is the component faring the best Friday, higher by about 9.6% on the day, while Deere ( DE ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 4.9%.
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The WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Friday, with over 900,000 shares traded versus three month average volume of about 44,000. VIDEO: Friday's ETF with Unusual Volume: XMX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Ross Stores ( ROST ) is the component faring the best Friday, higher by about 9.6% on the day, while Deere ( DE ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 4.9%.
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e90296d8-c237-4f35-9fdc-19c521f345c0
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722280.0
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2017-08-18 00:00:00 UTC
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Relative Strength Alert For Deere
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DE
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https://www.nasdaq.com/articles/relative-strength-alert-deere-2017-08-18
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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 Friday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 26.3, after changing hands as low as $112.87 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 40.0. A bullish investor could look at DE's 26.3 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 $76.73 per share, with $132.50 as the 52 week high point - that compares with a last trade of $116.87.
According to the ETF Finder at ETF Channel, DE makes up 8.70% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.8% on the day Friday.
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 Friday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 26.3, after changing hands as low as $112.87 per share. A bullish investor could look at DE's 26.3 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 $76.73 per share, with $132.50 as the 52 week high point - that compares with a last trade of $116.87.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 26.3, after changing hands as low as $112.87 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 $76.73 per share, with $132.50 as the 52 week high point - that compares with a last trade of $116.87. 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 Friday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 26.3, after changing hands as low as $112.87 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 $76.73 per share, with $132.50 as the 52 week high point - that compares with a last trade of $116.87. 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 Friday, shares of Deere & Co. (Symbol: DE) entered into oversold territory, hitting an RSI reading of 26.3, after changing hands as low as $112.87 per share. According to the ETF Finder at ETF Channel, DE makes up 8.70% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.8% on the day Friday. 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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b93e2a97-63a8-4b00-8e11-b364dc93c83a
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722281.0
|
2017-08-18 00:00:00 UTC
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Earnings Reaction History: Deere & Company, 50.0% Follow-Through Indicator, 5.5% Sensitive
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DE
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https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-500-follow-through-indicator-55-sensitive-2017-08
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nan
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nan
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Expected Earnings Release: 08/18/2017, Premarket
Avg. Extended-Hours Dollar Volume: $16,308,568
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: 40%
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 40.0% 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: 60%
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 60.0% 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: 40% 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 40.0% 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: 60% 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 60.0% 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: 40% 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 40.0% 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: 60% 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 60.0% 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: 40% 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 40.0% 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: 60% 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 60.0% 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: $16,308,568 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: $16,308,568 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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a0086e04-abfa-4c0d-8d35-2d1e11d780df
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722282.0
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2017-08-17 00:00:00 UTC
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TAL Education Group, Spirit Airlines, Walmart Stores, Deere & Company and Best Buy highlighted as Zacks Bull and Bear of the Day
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DE
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https://www.nasdaq.com/articles/tal-education-group-spirit-airlines-walmart-stores-deere-company-and-best-buy-highlighted
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nan
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nan
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For Immediate Release
Chicago, IL - August 17, 2017 - Zacks Equity Research highlights TAL Education Group ( NYSE: TAL - Free Report ) as the Bull of the Day Spirit Airlines(NASDAQ:SAVE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Walmart Stores, Inc. (NYSE: WMT - Free Report ), Deere & Company (NYSE: DE - Free Report ) and Best Buy Co., Inc. (NYSE: BBY - Free Report ).
Here is a synopsis of all three stocks:
Bull of the Day :
Chinese stocks have come into favor recently as investors have become more comfortable with the reporting. I remember the skepticism investors had over early Alibaba numbers. Are the books cooked? That skepticism carried over across the entire spectrum of Chinese ADRs. Now that these companies have been around for a few years, that skepticism is starting to fade and investors are more and more open to investing in China.
One such company is today's Bull of the Day, TAL Education Group ( NYSE: TAL - Free Report). TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. The company also provides tutoring services primarily through small classes, including Xueersi Peiyou, Mobby, and Firstleap tutoring services, personalized premium services under Izhikang name, and online courses.
TAL has been a Zacks Rank #1 (Strong Buy) because of the estimate revisions analysts have made on this year and next year's numbers. Two analysts have increased their estimates for the current year while three analysts have done so for next year's numbers. The overall effect has increased our Zacks Consensus Estimate from $1.92 to $2.03 for the current year while pushing up next year's number from $3.00 to $3.44. These numbers represent growth of 56% for the current year, accelerating to 69.18% for next year. It's important to note that these EPS numbers have not been adjusted for yesterday's 6 to 1 stock split.
Bear:
When oil prices were low and the US dollar was riding high, Airplane stocks were soaring. Over the last year, the industry has returned 10.6%. Lagging well behind the rest of the airline industry, down 33.9% YTD, is today's Bear of the Day, Spirit Airlines(NASDAQ: SAVE - Free Report).
Spirit Airlines, Inc. provides low-fare airline services. As of February 7, 2017, it operated approximately 420 daily flights to 59 destinations in the United States, the Caribbean, and Latin America. As of December 31, 2016, the company had a fleet of 95 Airbus single-aisle aircraft comprising 29 A319s, 45 A320ceos, 5 A320neos, and 16 A321ceos. It offers tickets through its call centers and airport ticket counters, as well as online through www.spirit.com ; and through various third parties, including online, traditional travel agents, and electronic global distribution systems.
Spirit Airlines is a Zacks Rank #5 (Strong Sell) because of multiple earnings estimate revisions to the downside. Over the last thirty days, eight analysts have dropped their EPS estimates for the current year while seven analysts have dropped their estimates for next year. The overall impact has cut down the Zacks Consensus Estimate for the current year from $4.21 to $3.68. Next year's consensus has plummeted from $4.88 to $4.26. Based on these revisions, the current year EPS is slated to contract 10.82%.
That's the bad news, the good news is that next year the company should return to EPS growth, with 15.57% year-over-year numbers projected. Revenue growth this year should come in around 15.86% in the face of the EPS contraction.
Not enough to convince investors to support the current share price though. After failing to break through the $60 level in May 2017 shares have been in a freefall. Following the most recent earnings report shares have gapped down and sold off under $40. The 50-day moving average looms above as overhead resistance around $48.
Additional content:
Earnings Season Not Over: 3 Stocks That Could Still Beat Estimates
Second-quarter earnings season is wrapping up, and results have-once again-proven to be relatively strong across the board. Sure, certain industries are struggling, but the economy appears to be healthy and our major indexes are continuing to hover near all-time highs.
With that said, there's obviously been plenty of positive earnings surprises that have led to skyrocketing share prices. But if you're worried that you missed out on a chance to profit from an earnings beat, have no fear-earnings season isn't over just yet.
Luckily, we can use the Zacks Earnings ESP to gauge whether a company is poised to beat earnings estimates. Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst revisions.
This is done because, generally speaking, if an analyst reevaluates their earnings 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.
When combining a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks have produced a positive earnings about 70% of the time. Want to target stocks that are more likely to beat estimates before Q2 reporting season is over? Check out these three companies that have yet to report:
1. Walmart Stores, Inc. (NYSE: WMT - Free Report )
Walmart has been pumping a ton of cash into revamping its stores and expanding its e-commerce business. Therefore, it will likely face tough year-over-year comparisons this quarter. In fact, the current Zacks Consensus Estimate is calling for earnings of $1.07 per share, which would represent a decline of nearly 0.5% from the year-ago quarter.
However, analyst sentiment has been improving recently, and the Most Accurate Estimate currently sits a penny higher-giving Walmart a positive Earnings ESP of 0.94%. Combined with the stock's Zacks Rank #2 (Buy), this should give investors additional confidence heading into its earnings announcement on Thursday morning.
2. Deere & Company (NYSE: DE - Free Report )
Best known for its line of John Deere agricultural equipment, Deere & Company is scheduled to release its fiscal third-quarter earnings on Friday morning. The Zacks Consensus Estimate is currently calling for earnings of $1.95 per share-a nearly 26% increase from the prior-year result. Deere & Company has also surpassed the Zacks Consensus Estimate by an average of over 70% in each of the trailing four quarters.
Analyst sentiment is strong heading into the report, as we've seen three positive estimate revisions in just the past seven days. Additionally, the Most Accurate Estimate sits at $1.98 per share, which gives Deere & Company a positive Earnings ESP of 1.54%. This fact, along with the stock's Zacks Rank #2 (Buy) and the company's strong earnings surprise history, should have investors more confident about the chances of a beat.
3. Best Buy Co., Inc. (NYSE: BBY - Free Report )
The retail sector has had a tough earnings season, but Best Buy has proven its ability to fend off competition from the likes of Amazon recently. In fact, the company has surpassed consensus estimates by an average of nearly 34% in each of the last four quarters. This quarter, the Zacks Consensus Estimate is calling for earnings of $0.63 per share, which would represent year-over-year growth of just over 10%.
Best Buy is scheduled to announce its earnings results before the market opens on August 29, and heading into the report, the company is sporting a positive Earnings ESP of 1.59%. The stock also has an "A" grade for Value in our Style Scores system, and its Zacks Rank #2 (Buy) is looking strong as we approach its report date.
Want morestock market analysisfrom this author? Make sure to follow @ Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
TAL Education Group (TAL): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
Wal-Mart Stores, Inc. (WMT): 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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It offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. This fact, along with the stock's Zacks Rank #2 (Buy) and the company's strong earnings surprise history, should have investors more confident about the chances of a beat. In addition, Zacks Equity Research provides analysis on Walmart Stores, Inc. (NYSE: WMT - Free Report ), Deere & Company (NYSE: DE - Free Report ) and Best Buy Co., Inc. (NYSE: BBY - Free Report ).
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In addition, Zacks Equity Research provides analysis on Walmart Stores, Inc. (NYSE: WMT - Free Report ), Deere & Company (NYSE: DE - Free Report ) and Best Buy Co., Inc. (NYSE: BBY - Free Report ). Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report TAL Education Group (TAL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Now that these companies have been around for a few years, that skepticism is starting to fade and investors are more and more open to investing in China.
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In addition, Zacks Equity Research provides analysis on Walmart Stores, Inc. (NYSE: WMT - Free Report ), Deere & Company (NYSE: DE - Free Report ) and Best Buy Co., Inc. (NYSE: BBY - Free Report ). Get the full Report on SAVE - FREE Get the full Report on TAL - FREE Get the full Report on WMT - FREE Get the full Report on DE - FREE Get the full Report on BBY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report TAL Education Group (TAL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here.
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In addition, Zacks Equity Research provides analysis on Walmart Stores, Inc. (NYSE: WMT - Free Report ), Deere & Company (NYSE: DE - Free Report ) and Best Buy Co., Inc. (NYSE: BBY - Free Report ). Now that these companies have been around for a few years, that skepticism is starting to fade and investors are more and more open to investing in China. TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China.
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7b458907-abc3-41e2-83f4-807913c5e1c8
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722283.0
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2017-08-17 00:00:00 UTC
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Pre-Market Earnings Report for August 18, 2017 : DE, EL, ASND, HIBB
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-august-18-2017-de-el-asnd-hibb-2017-08-17
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The following companies are expected to report earnings prior to market open on 08/18/2017. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending July 31, 2017. The farm machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.93. This value represents a 24.52% 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 2nd calendar quarter where they beat the consensus by 46.47%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 19.91 vs. an industry ratio of 15.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Estee Lauder Companies, Inc. ( EL ) is reporting for the quarter ending June 30, 2017. The cosmetic & toiletries company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.43. This value represents a no change for the same quarter last year. In the past year EL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 24.66%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for EL is 29.73 vs. an industry ratio of 33.60.
Ascendis Pharma A/S ( ASND ) is reporting for the quarter ending June 30, 2017. The biomedical (gene) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.80. This value represents a 33.33% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for ASND is -8.54 vs. an industry ratio of 2.80.
Hibbett Sports, Inc. ( HIBB ) is reporting for the quarter ending July 31, 2017. The retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $-0.20. This value represents a 168.97% decrease compared to the same quarter last year. HIBB missed the consensus earnings per share in the 4th calendar quarter of 2016 by -10.81%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for HIBB is 6.78 vs. an industry ratio of 14.70.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company ( DE ) is reporting for the quarter ending July 31, 2017. In the past year DE has beat the expectations every quarter. Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 19.91 vs. an industry ratio of 15.50, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 19.91 vs. an industry ratio of 15.50, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company ( DE ) is reporting for the quarter ending July 31, 2017. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 19.91 vs. an industry ratio of 15.50, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company ( DE ) is reporting for the quarter ending July 31, 2017. In the past year DE has beat the expectations every quarter.
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In the past year DE has beat the expectations every quarter. Deere & Company ( DE ) is reporting for the quarter ending July 31, 2017. Zacks Investment Research reports that the 2017 Price to Earnings ratio for DE is 19.91 vs. an industry ratio of 15.50, implying that they will have a higher earnings growth than their competitors in the same industry.
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3574a6e9-2aad-4b6b-831b-11b7e1ca5bc0
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722284.0
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2017-08-17 00:00:00 UTC
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Notable Thursday Option Activity: DE, NVDA, BIIB
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DE
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https://www.nasdaq.com/articles/notable-thursday-option-activity-de-nvda-biib-2017-08-17
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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 22,127 contracts have traded so far, representing approximately 2.2 million underlying shares. That amounts to about 118.7% of DE's average daily trading volume over the past month of 1.9 million shares. Especially high volume was seen for the $120 strike put option expiring August 18, 2017 , with 1,948 contracts trading so far today, representing approximately 194,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $120 strike highlighted in orange:
NVIDIA Corp (Symbol: NVDA) options are showing a volume of 100,276 contracts thus far today. That number of contracts represents approximately 10.0 million underlying shares, working out to a sizeable 55.7% of NVDA's average daily trading volume over the past month, of 18.0 million shares. Particularly high volume was seen for the $165 strike call option expiring August 18, 2017 , with 11,207 contracts trading so far today, representing approximately 1.1 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $165 strike highlighted in orange:
And Biogen Inc (Symbol: BIIB) saw options trading volume of 7,087 contracts, representing approximately 708,700 underlying shares or approximately 55% of BIIB's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $290 strike put option expiring August 18, 2017 , with 691 contracts trading so far today, representing approximately 69,100 underlying shares of BIIB. Below is a chart showing BIIB's trailing twelve month trading history, with the $290 strike highlighted in orange:
For the various different available expirations for DE options , NVDA options , or BIIB 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 $120 strike put option expiring August 18, 2017 , with 1,948 contracts trading so far today, representing approximately 194,800 underlying shares of DE. Particularly high volume was seen for the $165 strike call option expiring August 18, 2017 , with 11,207 contracts trading so far today, representing approximately 1.1 million underlying shares of NVDA. Especially high volume was seen for the $290 strike put option expiring August 18, 2017 , with 691 contracts trading so far today, representing approximately 69,100 underlying shares of BIIB.
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Below is a chart showing DE's trailing twelve month trading history, with the $120 strike highlighted in orange: NVIDIA Corp (Symbol: NVDA) options are showing a volume of 100,276 contracts thus far today. Particularly high volume was seen for the $165 strike call option expiring August 18, 2017 , with 11,207 contracts trading so far today, representing approximately 1.1 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $165 strike highlighted in orange: And Biogen Inc (Symbol: BIIB) saw options trading volume of 7,087 contracts, representing approximately 708,700 underlying shares or approximately 55% of BIIB's average daily trading volume over the past month, of 1.3 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 22,127 contracts have traded so far, representing approximately 2.2 million underlying shares. Particularly high volume was seen for the $165 strike call option expiring August 18, 2017 , with 11,207 contracts trading so far today, representing approximately 1.1 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $165 strike highlighted in orange: And Biogen Inc (Symbol: BIIB) saw options trading volume of 7,087 contracts, representing approximately 708,700 underlying shares or approximately 55% of BIIB's average daily trading volume over the past month, of 1.3 million shares.
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Especially high volume was seen for the $120 strike put option expiring August 18, 2017 , with 1,948 contracts trading so far today, representing approximately 194,800 underlying shares of DE. Particularly high volume was seen for the $165 strike call option expiring August 18, 2017 , with 11,207 contracts trading so far today, representing approximately 1.1 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $165 strike highlighted in orange: And Biogen Inc (Symbol: BIIB) saw options trading volume of 7,087 contracts, representing approximately 708,700 underlying shares or approximately 55% of BIIB's average daily trading volume over the past month, of 1.3 million shares.
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722285.0
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2017-08-16 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Axcelis Technologies, KB Home, Deere & Company, CAI International and Best Buy Co
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-axcelis-technologies-kb-home-deere-company-cai
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For Immediate Release
Chicago, IL - August 16, 2017 - 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 Axcelis Technologies Inc. (NASDAQ: ACLS - Free Report ), KB Home (NYSE: KBH - Free Report ), Deere & Company (NYSE: DE - Free Report ), CAI International Inc (NYSE: CAI - Free Report ) and Best Buy Co Inc (NYSE: BBY - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Wall Street Posts Best Day of Summer: Top 5 Winners
Both the S&P 500 and the Nasdaq gained more than 1% for the first time in 3 months on Aug 14, while the Dow Jones rose more than 100 points as geopolitical fears ebb. In fact, the S&P 500 and the Nasdaq traded above their 50-day moving averages as Wall Street sees less tension over North Korea.
The broad stock market rally followed a loss of nearly $1 trillion dollar last week, when President Trump warned Kim Jong-un's hermit state that it would face "fire and fury" if it threatens the United States, leading to a verbal standoff between Washington and Pyongyang.
Corporate America, meanwhile, is having its best earnings season in 13 years with top executives from Dow Chemical and Morgan Stanley citing rise in overseas sales, a telltale sign that should help boost gains in the second half of this year. Economists also predict that U.S. economic expansion will last another two years, while global growth chugs along. Thanks to such bullish trends, it will be prudent to invest in some of the top gainers.
U.S. - North Korea Standoff Calms
Geopolitical fears seem to have faded after Secretary of State Rex Tillerson and U.S. Secretary of Defense James Mattis said that Washington would continue to pursue diplomatic solutions with North Korea. CIA Director Mike Pompeo and National Security Adviser H.R. McMaster also stated that there was no hint of a war with Pyongyang. Chinese President Xi Jinping urged for a peaceful resolution to the North Korea issue.
The soothing comments came after Trump said last week that Pyongyang will face "fire, fury and frankly power the likes of which this world has never seen before." His harsh words came in after U.S. intelligence analysts said that North Korea has developed a miniaturized nuclear warhead. Following Trump's comments, North Korea said that it was "examining the operational plan" to strike sensitive areas like the Anderson Air Force base.
Best Earnings Season for Corporate America in 13 Years
Corporate profits, in the meantime, are on pace to register the highest number of S&P 500 companies beating sales estimates in 13 years, as per Bank of America equity strategists. They added the earnings beats will also be the highest since 2004.
Of the 454 companies in the S&P 500 that have so far reported second-quarter results, earnings for these companies are up 10.8% from the same period last year on 5.8% higher revenues, with 74.3% beating EPS estimates and 68% beating revenue estimates.
While Europe has been the source of strength in the first three months of this year, emerging-market sales were the driving force from April through June. A weak dollar benefitted U.S. companies like Kellogg, which beat earnings estimates.
U.S. Economic Growth Will Last Another 2 Years
U.S. economic growth also will last at least another two years, according to 34 of 57 economists polled by Reuters. Among those economists, 13 said it would last more than three years, while 21 said two to three years.
U.S. GDP has already crossed the $19 trillion mark, according to the U.S. Bureau of Economic Analysis. Under Trump, the U.S. economy grew more than $300 billion in just two quarters. Conversely, at the end of the first two quarters under President Obama, U.S. GDP had contracted.
A rebound in consumer spending boosted overall economic growth. Consumer outlays grew 2.8% in the second quarter as Americans spent more on healthcare, groceries and clothes. Spending rebounded in the last quarter, buoyed by an uptick in household finances. Disposable income adjusted for inflation saw the best back-to-back quarters this year since the first half of 2015.
Signs of Global Growth Boosted Stocks
Stocks were also helped by signs that global growth is persisting along. Japan' economy expanded at an annualized rate of 4% in the second quarter, its fastest pace of growth since the first quarter of 2015. Private consumption and capital expenditures were cited to be the reasons behind this uptick in economic expansion. This also marked the country's longest streak of uninterrupted growth in 11 years.
While growth was faster than expected in Japan, China's factory output rose 6.4% in July from a year earlier. The International Monetary Fund (IMF) has already revised up growth expectations for China for this year and next. Overall, IMF has kept its growth forecasts for the world economy unchanged for this year and next.
Top 5 Gainers
Banking on such positive trends, we have selected five solid stocks from the major indices. These stocks have not only gained immensely on Aug 14, but, are also poised to move north in the near term. At the same time, these stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of 'A' or 'B.' Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Axcelis Technologies Inc. (NASDAQ: ACLS - Free Report ) designs, manufactures and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. The company has a Zacks Rank #2, a VGM score of 'A' and has rallied 3.9% on Apr 14.
The company's estimated earnings growth rate for the current year is 239.8%, more than the industry's addition of 8.5%. Axcelis Technologies has outperformed the industry on a year-to-date basis (+45.1% vs. +28.2%).
KB Home (NYSE: KBH - Free Report ) is a homebuilding company. The company has a Zacks Rank #1, a VGM score of 'A' and has rallied 1.8% on Apr 14.
The company's estimated earnings growth rate for the current year is 51.7%, more than the industry's addition of 13.7%. KB Home has outperformed the industry on a year-to-date basis (+46.1% vs. +13%).
Deere & Company (NYSE: DE - Free Report ) is engaged in equipment operations. The company has a Zacks Rank #2, a VGM score of 'B' and has rallied 1.5% on Apr 14.
The company's estimated earnings growth rate for the current year is 31.6%, more than the industry's addition of 25.1%. Deere & Company has outperformed the industry on a year-to-date basis (+24.7% vs. +16.6%). You can see the complete list of today's Zacks #1 Rank stocks here.
CAI International Inc (NYSE: CAI - Free Report ) is a transportation finance and logistics company. The company has a Zacks Rank #1, a VGM score of 'B' and has rallied 3.8% on Apr 14.
The company's estimated earnings growth rate for the current year is 405.4%; in contrast the industry is projected to decline 23.8%. CAI International has outperformed the industry on a year-to-date basis (+226% vs. +5.1%).
Best Buy Co Inc (NYSE: BBY - Free Report ) is a provider of technology products, services and solutions. The company has a Zacks Rank #2, a VGM score of 'A' and has rallied 1.1% on Apr 14.
The company's estimated earnings growth rate for the current year is 9.2%, more than the industry's addition of 3%. Best Buy has outperformed the industry on a year-to-date basis (+42.3% vs. +20.1%).
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on ACLS - FREE
Get the full Report on KBH - FREE
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CAI International, Inc. (CAI): Free Stock Analysis Report
Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
KB Home (KBH): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Following Trump's comments, North Korea said that it was "examining the operational plan" to strike sensitive areas like the Anderson Air Force base. Axcelis Technologies Inc. (NASDAQ: ACLS - Free Report ) designs, manufactures and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. Stocks recently featured in the blog include Axcelis Technologies Inc. (NASDAQ: ACLS - Free Report ), KB Home (NYSE: KBH - Free Report ), Deere & Company (NYSE: DE - Free Report ), CAI International Inc (NYSE: CAI - Free Report ) and Best Buy Co Inc (NYSE: BBY - Free Report ).
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Stocks recently featured in the blog include Axcelis Technologies Inc. (NASDAQ: ACLS - Free Report ), KB Home (NYSE: KBH - Free Report ), Deere & Company (NYSE: DE - Free Report ), CAI International Inc (NYSE: CAI - Free Report ) and Best Buy Co Inc (NYSE: BBY - Free Report ). Get the full Report on ACLS - FREE Get the full Report on KBH - FREE Get the full Report on DE - FREE Get the full Report on CAI - FREE Get the full Report on BBY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report CAI International, Inc. (CAI): Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report KB Home (KBH): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Axcelis Technologies Inc. (NASDAQ: ACLS - Free Report ), KB Home (NYSE: KBH - Free Report ), Deere & Company (NYSE: DE - Free Report ), CAI International Inc (NYSE: CAI - Free Report ) and Best Buy Co Inc (NYSE: BBY - Free Report ). Get the full Report on ACLS - FREE Get the full Report on KBH - FREE Get the full Report on DE - FREE Get the full Report on CAI - FREE Get the full Report on BBY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report CAI International, Inc. (CAI): Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report KB Home (KBH): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Axcelis Technologies Inc. (NASDAQ: ACLS - Free Report ), KB Home (NYSE: KBH - Free Report ), Deere & Company (NYSE: DE - Free Report ), CAI International Inc (NYSE: CAI - Free Report ) and Best Buy Co Inc (NYSE: BBY - Free Report ). In fact, the S&P 500 and the Nasdaq traded above their 50-day moving averages as Wall Street sees less tension over North Korea. The broad stock market rally followed a loss of nearly $1 trillion dollar last week, when President Trump warned Kim Jong-un's hermit state that it would face "fire and fury" if it threatens the United States, leading to a verbal standoff between Washington and Pyongyang.
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722286.0
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2017-08-16 00:00:00 UTC
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Earnings Season Isn't Over: 3 Stocks That Could Still Beat Estimates
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DE
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https://www.nasdaq.com/articles/earnings-season-isnt-over-3-stocks-could-still-beat-estimates-2017-08-16
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Second-quarter earnings season is wrapping up, and results have-once again-proven to be relatively strong across the board. Sure, certain industries are struggling, but the economy appears to be healthy and our major indexes are continuing to hover near all-time highs.
With that said, there's obviously been plenty of positive earnings surprises that have led to skyrocketing share prices. But if you're worried that you missed out on a chance to profit from an earnings beat, have no fear-earnings season isn't over just yet.
Luckily, we can use the Zacks Earnings ESP to gauge whether a company is poised to beat earnings estimates. Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst revisions.
This is done because, generally speaking, if an analyst reevaluates their earnings 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.
When combining a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks have produced a positive earnings about 70% of the time. Want to target stocks that are more likely to beat estimates before Q2 reporting season is over? Check out these three companies that have yet to report:
1. Walmart Stores, Inc. (WMT)
Walmart has been pumping a ton of cash into revamping its stores and expanding its e-commerce business. Therefore, it will likely face tough year-over-year comparisons this quarter. In fact, the current Zacks Consensus Estimate is calling for earnings of $1.07 per share, which would represent a decline of nearly 0.5% from the year-ago quarter.
However, analyst sentiment has been improving recently, and the Most Accurate Estimate currently sits a penny higher-giving Walmart a positive Earnings ESP of 0.94%. Combined with the stock's Zacks Rank #2 (Buy), this should give investors additional confidence heading into its earnings announcement on Thursday morning.
2. Deere & Company (DE)
Best known for its line of John Deere agricultural equipment, Deere & Company is scheduled to release its fiscal third-quarter earnings on Friday morning. The Zacks Consensus Estimate is currently calling for earnings of $1.95 per share-a nearly 26% increase from the prior-year result. Deere & Company has also surpassed the Zacks Consensus Estimate by an average of over 70% in each of the trailing four quarters.
Analyst sentiment is strong heading into the report, as we've seen three positive estimate revisions in just the past seven days. Additionally, the Most Accurate Estimate sits at $1.98 per share, which gives Deere & Company a positive Earnings ESP of 1.54%. This fact, along with the stock's Zacks Rank #2 (Buy) and the company's strong earnings surprise history, should have investors more confident about the chances of a beat.
3. Best Buy Co., Inc. (BBY)
The retail sector has had a tough earnings season, but Best Buy has proven its ability to fend off competition from the likes of Amazon AMZN recently. In fact, the company has surpassed consensus estimates by an average of nearly 34% in each of the last four quarters. This quarter, the Zacks Consensus Estimate is calling for earnings of $0.63 per share, which would represent year-over-year growth of just over 10%.
Best Buy is scheduled to announce its earnings results before the market opens on August 29, and heading into the report, the company is sporting a positive Earnings ESP of 1.59%. The stock also has an "A" grade for Value in our Style Scores system, and its Zacks Rank #2 (Buy) is looking strong as we approach its report date.
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The Hottest Tech Mega-Trend of All
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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
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
Wal-Mart Stores, Inc. (WMT): 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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Combined with the stock's Zacks Rank #2 (Buy), this should give investors additional confidence heading into its earnings announcement on Thursday morning. This fact, along with the stock's Zacks Rank #2 (Buy) and the company's strong earnings surprise history, should have investors more confident about the chances of a beat. Sure, certain industries are struggling, but the economy appears to be healthy and our major indexes are continuing to hover near all-time highs.
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Combined with the stock's Zacks Rank #2 (Buy), this should give investors additional confidence heading into its earnings announcement on Thursday morning. This fact, along with the stock's Zacks Rank #2 (Buy) and the company's strong earnings surprise history, should have investors more confident about the chances of a beat. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Sure, certain industries are struggling, but the economy appears to be healthy and our major indexes are continuing to hover near all-time highs. In fact, the current Zacks Consensus Estimate is calling for earnings of $1.07 per share, which would represent a decline of nearly 0.5% from the year-ago quarter.
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Additionally, the Most Accurate Estimate sits at $1.98 per share, which gives Deere & Company a positive Earnings ESP of 1.54%. This fact, along with the stock's Zacks Rank #2 (Buy) and the company's strong earnings surprise history, should have investors more confident about the chances of a beat. Sure, certain industries are struggling, but the economy appears to be healthy and our major indexes are continuing to hover near all-time highs.
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e55f8804-046a-4c57-ab92-08685c0d8d4b
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722287.0
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2017-08-15 00:00:00 UTC
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See This Week's Hottest Earnings Charts
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DE
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https://www.nasdaq.com/articles/see-weeks-hottest-earnings-charts-2017-08-15
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nan
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nan
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Earnings season chugs on although this week there are only about 300 companies reporting.
But don't write earnings off just yet. Within those 300 companies are some of the top names in retail and technology.
While FANG has reported, one of the hidden tech titans and two other glamour technology stocks have yet to report. One of them has a perfect earnings record and another has missed just once.
It's not easy to beat every quarter for years yet some of these hot names are doing just that.
Will they keep up their earnings surprise track records this quarter?
The Best of This Week's Retail Earnings Charts
1. Zoe's Kitchen (ZOES) has missed only once since its 2014 IPO but shares are at new lows. The restaurant bubble has officially popped.
2. Cisco (CSCO) still has a perfect 5-year beat record but investors have again soured on the shares. Can they get their momentum back?
3. Alibaba (BABA) missed last quarter but no one cares. It's all about revenue right now and that is rising nearly 50% year-over-year. As long as the revenue numbers look good, investors will be all in.
4. Applied Materials (AMAT) has missed only once in the last 5 years. It has one of the best charts of the week as the semiconductors still remain a hot sector.
5. Deere (DE) hasn't missed in 4 years. Shares have been soaring and it is not cheap, at 20x forward earnings. Will investors keep buying into the construction equipment story even without an infrastructure plan out of Washington?
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Zoe's Kitchen, Inc. (ZOES): 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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Each week, Zacks' Dave Bartosiak will bring you a detailed explanation of the trades "live" on YouTube. While FANG has reported, one of the hidden tech titans and two other glamour technology stocks have yet to report. Deere (DE) hasn't missed in 4 years.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Zoe's Kitchen, Inc. (ZOES): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. While FANG has reported, one of the hidden tech titans and two other glamour technology stocks have yet to report. Deere (DE) hasn't missed in 4 years.
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Each week, Zacks' Dave Bartosiak will bring you a detailed explanation of the trades "live" on YouTube. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Zoe's Kitchen, Inc. (ZOES): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. While FANG has reported, one of the hidden tech titans and two other glamour technology stocks have yet to report.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Zoe's Kitchen, Inc. (ZOES): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. While FANG has reported, one of the hidden tech titans and two other glamour technology stocks have yet to report. Deere (DE) hasn't missed in 4 years.
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feedb0da-a954-4c41-9c45-76da0ac37b90
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722288.0
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2017-08-15 00:00:00 UTC
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Manitowoc (MTW) to Grow on Initiatives despite Weak Demand
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https://www.nasdaq.com/articles/manitowoc-mtw-to-grow-on-initiatives-despite-weak-demand-2017-08-15
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On Aug 14, 2017, we issued an updated research report on The Manitowoc Company, Inc.MTW , a leading global manufacturer of cranes and lift solutions.
The company reported second-quarter 2017 adjusted earnings of 5 cents per share, up 67% year over year. After incurring losses for three consecutive quarters due to weak crane demand, the company has returned to profit in the second quarter. The year-over-year improvement was mainly driven by focus on consolidating manufacturing footprint and reducing cost of organizational structure.
Second-quarter orders were at $379.5 million, up 9% year over year despite challenging end markets. This includes receiving the first orders of approximately $11 million for the production of the U.S. Army contract. The first two units of this contract will be shipped in 2017. Backlog at quarter end was $491.2 million, a 25% year-over-year rise.
The company witnessed few sections of growth in specific markets within North America, such as the Permian and Eagle Ford basins. European markets continue to grow at a modest pace, underscored by residential and non-residential project activity. Manitowoc continues to drive new programs in the aftermarket business, which contributed around 20% of revenues in the reported quarter. The company remains focused on growing this part of the business.
Manitowoc hiked full-year 2017 financial guidance backed by first-half 2017 performance and expectations of revenue growth for the back half of the year. The company now anticipates revenues to decline approximately 5-7% year over year in 2017. Its previous guidance was a decline of between 8% and 10%. Adjusted EBITDA is forecasted to lie between $59 million and $69 million (previous guidance was between $41 million and $59 million).
The overallglobal marketsentiment for lattice boom crawlers and rough-terrain cranes remains soft in the quarter. Demand continues to be muted in the Americas and the Middle East region due to weak rental and used equipment. Uncertainty among customers is mounting due to emerging market peers, apprehensions related to China's growth outlook, persistently depressed oil prices and sluggish domestic growth.
Nevertheless, Manitowoc is making significant progress in the implementation of The Manitowoc Way to drive four key strategic priorities. The first part of the strategy is margin expansion. The company remains focused on cost controls, reducing headcount, increasing productivity and eliminating waste. The next strategic priority is growth. The company's new product pipeline remains focused on integrating the changing customer needs.
The third key priority remains innovation. The company is poised to grow on its newly developed TMS 9000-2 truck-mounted cranes which are ready for shipment. Further, it continues investment in lattice boom crawler cranes despite current market conditions. An example of this is the enhancement to the MLC650 and its VP Max configuration of a newly designed 3.5-meter wide boom insert. This enables customers to complete jobs that require more reach from the standard product footprint, particularly in the ever-evolving wind industry. The fourth key strategic priority is velocity. The company applied these tools to grow its boom truck business, which is a highly customized crane with a variety of commercial truck configurations.
Manitowoc has an estimated long-term earnings growth rate of 15%. Other stocks in the industrial product space include AGCO Corporation AGCO , Terex Corporation TEX and Deere & Company DE . AGCO has expected long-term growth of 13.51%. Terex has an expected long-term growth of 19.67% and Deere & Company has an expected long-term growth of 9.17%.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
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
Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): 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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After incurring losses for three consecutive quarters due to weak crane demand, the company has returned to profit in the second quarter. Second-quarter orders were at $379.5 million, up 9% year over year despite challenging end markets. This includes receiving the first orders of approximately $11 million for the production of the U.S. Army contract.
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Other stocks in the industrial product space include AGCO Corporation AGCO , Terex Corporation TEX and Deere & Company DE . Terex has an expected long-term growth of 19.67% and Deere & Company has an expected long-term growth of 9.17%. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Terex has an expected long-term growth of 19.67% and Deere & Company has an expected long-term growth of 9.17%. Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. After incurring losses for three consecutive quarters due to weak crane demand, the company has returned to profit in the second quarter.
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Click to get this free report Terex Corporation (TEX): Free Stock Analysis Report Manitowoc Company, Inc. (The) (MTW): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. After incurring losses for three consecutive quarters due to weak crane demand, the company has returned to profit in the second quarter. Second-quarter orders were at $379.5 million, up 9% year over year despite challenging end markets.
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2afc9dbf-262a-45af-a7db-e07e73a873a2
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722289.0
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2017-08-15 00:00:00 UTC
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AGCO (AGCO) to Gain from Acquisitions, Increased Investments
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https://www.nasdaq.com/articles/agco-agco-to-gain-from-acquisitions-increased-investments-2017-08-15
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On Aug 14, we issued an updated research report on AGCO CorporationAGCO . The company is poised to benefit from increased investments through capital expenditures and engineering spend. Its focus on acquisitions and cost-reduction efforts will also drive growth.
In the second-quarter conference call, AGCO raised its net sales guidance to around $8 billion for 2017. The raised guidance highlights improved sales volumes, positive pricing and acquisition impacts. It also displays the benefits of AGCO's efforts to reduce expenses, raise efficiency of factories, invest in new technologies, productivity enhancements and roll out products.
The company also lifted its earnings per share target for 2017 to around $3.00. It guided third-quarter 2017 earnings per share to be about 65-70 cents per share. It reaffirmed capital expenditure guidance range of $200-$225 million and free cash flow band of $225-$250 million in 2017.
Further, AGCO continues to make strategic investments to refresh and expand its product lines, upgrade system capabilities and improve factory productivity. The company intends to increase the level of investment to execute its product development plans, resulting in increased capital expenditure and engineering spend in 2017.
The pending acquisition of Precision Planting equipment business from The Climate Corporation - a subsidiary of Monsanto Company MON - will boost AGCO's Precision Planting technology. Additionally, the Lely and Kepler Weber acquisition are anticipated to drive growth.
AGCO has an estimated long-term earnings growth rate of 13.51%. Other stocks in the same industry are Deere & Company DE with expected long-term earnings growth rate of 9.17% and Altra Industrial Motion Corp. AIMC with expected long-term earnings growth rate of 8%.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
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
Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
Monsanto Company (MON): 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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It guided third-quarter 2017 earnings per share to be about 65-70 cents per share. Further, AGCO continues to make strategic investments to refresh and expand its product lines, upgrade system capabilities and improve factory productivity. The company intends to increase the level of investment to execute its product development plans, resulting in increased capital expenditure and engineering spend in 2017.
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Other stocks in the same industry are Deere & Company DE with expected long-term earnings growth rate of 9.17% and Altra Industrial Motion Corp. AIMC with expected long-term earnings growth rate of 8%. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Monsanto Company (MON): Free Stock Analysis Report To read this article on Zacks.com click here. It guided third-quarter 2017 earnings per share to be about 65-70 cents per share.
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Other stocks in the same industry are Deere & Company DE with expected long-term earnings growth rate of 9.17% and Altra Industrial Motion Corp. AIMC with expected long-term earnings growth rate of 8%. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Monsanto Company (MON): Free Stock Analysis Report To read this article on Zacks.com click here. It guided third-quarter 2017 earnings per share to be about 65-70 cents per share.
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Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Monsanto Company (MON): Free Stock Analysis Report To read this article on Zacks.com click here. It guided third-quarter 2017 earnings per share to be about 65-70 cents per share. Further, AGCO continues to make strategic investments to refresh and expand its product lines, upgrade system capabilities and improve factory productivity.
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3a1eb38b-ea73-49d8-949b-fd7240b4eb8c
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722290.0
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2017-08-14 00:00:00 UTC
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Restructuring Capital Associates Lp Buys California Resources Corp, Vistra Energy Corp
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DE
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https://www.nasdaq.com/articles/restructuring-capital-associates-lp-buys-california-resources-corp-vistra-energy-corp-2017
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Restructuring Capital Associates Lp
New Purchases: VST ,
Added Positions: CRC ,
Reduced Positions: JFR , ARCH,
For the details of RESTRUCTURING CAPITAL ASSOCIATES LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=RESTRUCTURING+CAPITAL+ASSOCIATES+LP
These are the top 5 holdings of RESTRUCTURING CAPITAL ASSOCIATES LP
Arch Coal Inc ( ARCH ) - 373,629 shares, 21.94% of the total portfolio. Shares reduced by 2.61%
Nuveen Floating Rate Income Fund ( JFR ) - 1,771,568 shares, 18.05% of the total portfolio. Shares reduced by 5.85%
Nuveen Credit Strategies Income Fund Shares of Ben ( JQC ) - 2,047,768 shares, 15.16% of the total portfolio.
Invesco Senior Income Trust ( DE ) ( VVR ) - 3,352,276 shares, 13.14% of the total portfolio.
Eaton Vance Floating Rate Income Trust of Benefici (EFT) - 729,649 shares, 9.5% of the total portfolio.
New Purchase: Vistra Energy Corp (VST)
Restructuring Capital Associates Lp initiated holdings in Vistra Energy Corp. The purchase prices were between $14.59 and $16.86, with an estimated average price of $15.71. The stock is now traded at around $17.31. The impact to the portfolio due to this purchase was 2.89%. The holdings were 200,000 shares as of 2017-06-30.
Added: California Resources Corp (CRC)
Restructuring Capital Associates Lp added to the holdings in California Resources Corp by 393.27%. The purchase prices were between $8.01 and $15.71, with an estimated average price of $11.87. The stock is now traded at around $7.30. The impact to the portfolio due to this purchase was 7.27%. The holdings were 1,240,430 shares as of 2017-06-30.
Warning! GuruFocus has detected 6 Warning Signs with CRC. Click here to check it out.
CRC 15-Year Financial Data
The intrinsic value of CRC
Peter Lynch Chart of CRC
Premium Members
This article first appeared on GuruFocus .
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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Restructuring Capital Associates Lp New Purchases: VST , Added Positions: CRC , Reduced Positions: JFR , ARCH, For the details of RESTRUCTURING CAPITAL ASSOCIATES LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=RESTRUCTURING+CAPITAL+ASSOCIATES+LP These are the top 5 holdings of RESTRUCTURING CAPITAL ASSOCIATES LP Arch Coal Inc ( ARCH ) - 373,629 shares, 21.94% of the total portfolio. Invesco Senior Income Trust ( DE ) ( VVR ) - 3,352,276 shares, 13.14% of the total portfolio. The stock is now traded at around $17.31.
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Restructuring Capital Associates Lp New Purchases: VST , Added Positions: CRC , Reduced Positions: JFR , ARCH, For the details of RESTRUCTURING CAPITAL ASSOCIATES LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=RESTRUCTURING+CAPITAL+ASSOCIATES+LP These are the top 5 holdings of RESTRUCTURING CAPITAL ASSOCIATES LP Arch Coal Inc ( ARCH ) - 373,629 shares, 21.94% of the total portfolio. Added: California Resources Corp (CRC) Restructuring Capital Associates Lp added to the holdings in California Resources Corp by 393.27%. Invesco Senior Income Trust ( DE ) ( VVR ) - 3,352,276 shares, 13.14% of the total portfolio.
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Restructuring Capital Associates Lp New Purchases: VST , Added Positions: CRC , Reduced Positions: JFR , ARCH, For the details of RESTRUCTURING CAPITAL ASSOCIATES LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=RESTRUCTURING+CAPITAL+ASSOCIATES+LP These are the top 5 holdings of RESTRUCTURING CAPITAL ASSOCIATES LP Arch Coal Inc ( ARCH ) - 373,629 shares, 21.94% of the total portfolio. Invesco Senior Income Trust ( DE ) ( VVR ) - 3,352,276 shares, 13.14% of the total portfolio. The stock is now traded at around $17.31.
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GuruFocus has detected 6 Warning Signs with CRC. Restructuring Capital Associates Lp New Purchases: VST , Added Positions: CRC , Reduced Positions: JFR , ARCH, For the details of RESTRUCTURING CAPITAL ASSOCIATES LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=RESTRUCTURING+CAPITAL+ASSOCIATES+LP These are the top 5 holdings of RESTRUCTURING CAPITAL ASSOCIATES LP Arch Coal Inc ( ARCH ) - 373,629 shares, 21.94% of the total portfolio. Invesco Senior Income Trust ( DE ) ( VVR ) - 3,352,276 shares, 13.14% of the total portfolio.
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1d04f801-d664-47d9-9a42-9ec2ea58c804
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722291.0
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2017-08-14 00:00:00 UTC
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Caterpillar Poised to Ride on Asia, Cost Cuts & Construction
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https://www.nasdaq.com/articles/caterpillar-poised-to-ride-on-asia-cost-cuts-construction-2017-08-14
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nan
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nan
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On Aug 10, we issued an updated research report on the mining and equipment behemoth, Caterpillar Inc.CAT . The company which had so far been struggling with weak mining has managed to deliver a turnaround performance this year thanks to its relentless cost saving actions along with improvement in construction and Asia Pacific.
Caterpillar's top and bottom-lines both improved a respective 37% and 9.6% on a year-over-year basis in the second quarter and also beat the respective Zacks Consensus Estimate. This builds upon the momentum of the first quarter wherein Caterpillar reported year-over-year improvement in both top and bottom lines for the first time in 10 quarters. The better-than-expected results continue to be driven by its disciplined cost-control efforts.
Further, quoting activity remains promising in many of Caterpillar's markets and retail sales are turning positive for both machines and Energy & Transportation for the first time in several years. At the end of second-quarter 2017, Caterpillar's backlog was at $14.8 billion. On a year-over-year basis, order backlog improved by about $3 billion.
Owing to the upbeat first-half performance, improved order activity and disciplined cost control, Caterpillar also hiked revenue guidance during second-quarter conference call to the range of $42-$44 billion from the prior range of $38-$41 billion. The company now projects earnings per share of $5.00 per share compared with previous guidance of $3.75 per share. The mid-point of the revenue guidance and earnings per share guidance reflect a year-over-year growth of 12% and 46% respectively.
The Zacks Consensus Estimate for fiscal 2017 for revenues and earnings are $42.9 billion and $5.22, respectively. Estimates for Caterpillar have moved up in the past 30 days, reflecting the optimistic outlook of analysts. The earnings estimate for fiscal 2017 has risen 35% while that of fiscal 2018 has moved up 23%.
In September 2015, Caterpillar set upon significant restructuring and cost reduction initiative, with actions expected through 2018. Once fully implemented, the plan would lower its annual operating costs by about $1.5 billion. This will be backed by the consolidation or closure of more than 30 facilities that would decrease manufacturing square footage by more than 10% and reduce the workforce by more than 10,000 people.
During August 2016, Caterpillar witnessed the first positive overall reading in sales in the Asia Pacific region. The company has since then witnessed a growing trend in overall sales in the region with growth graph steadily picking up steam from single digits to the recent 40% in June. In Resource Industries, Asia Pacific has delivered positive growth in May (34%) and June (12%). In the region, Construction Industries has also shown marked improvement. Growth has particularly picked up in 2017 ranging from 27% in January 2017 to the latest figure of 48% in Jun 2017. Asia Pacific sales continue to increase primarily owing to increased infrastructure and residential investment in China.
Sales in Construction Industries has picked up from the low-single digits in February 2017 to 10% in June. The US Architecture Billings Index (ABI), an economic indicator that provides an approximately nine to 12 month glimpse into the future of non-residential construction spending activity, has been at 50 or better recently, signaling robust conditions ahead for the construction industry. As per Dodge Data & Analytics, total U.S. construction starts for 2017 will advance 5% to $713 billion. The construction industry has now entered a more mature phase of its expansion and construction spending can be anticipated to see moderate gains through 2017 and beyond.
The company has outperformed the industry on a year-to-date basis. Shares have gained 24.6% while the industry registered an increase of 22.2%. In fact, Caterpillar's share price has benefited since the victory of Donald Trump as investors expect his plans of big spending in infrastructure to boost revenues. Moreover, the stock has an estimated long-term earnings growth rate of 9.50%.
Caterpillar currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked companies in the industrial product space include AGCO Corporation AGCO , Terex Corporation TEX and Deere & Company DE . AGCO and Terex flaunts the same rank as Caterpillar while Deere carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
AGCO has expected long-term growth of 13.51%.
Deere & Company has an expected long-term growth of 9.17%.
Terex has an expected long-term growth of 19.67%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
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
AGCO Corporation (AGCO): 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 company which had so far been struggling with weak mining has managed to deliver a turnaround performance this year thanks to its relentless cost saving actions along with improvement in construction and Asia Pacific. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. On a year-over-year basis, order backlog improved by about $3 billion.
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Owing to the upbeat first-half performance, improved order activity and disciplined cost control, Caterpillar also hiked revenue guidance during second-quarter conference call to the range of $42-$44 billion from the prior range of $38-$41 billion. Other top-ranked companies in the industrial product space include AGCO Corporation AGCO , Terex Corporation TEX and Deere & Company DE . 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 AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Owing to the upbeat first-half performance, improved order activity and disciplined cost control, Caterpillar also hiked revenue guidance during second-quarter conference call to the range of $42-$44 billion from the prior range of $38-$41 billion. Other top-ranked companies in the industrial product space include AGCO Corporation AGCO , Terex Corporation TEX and Deere & Company DE . 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 AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Owing to the upbeat first-half performance, improved order activity and disciplined cost control, Caterpillar also hiked revenue guidance during second-quarter conference call to the range of $42-$44 billion from the prior range of $38-$41 billion. The company which had so far been struggling with weak mining has managed to deliver a turnaround performance this year thanks to its relentless cost saving actions along with improvement in construction and Asia Pacific. On a year-over-year basis, order backlog improved by about $3 billion.
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80ca0435-38c7-4829-b2bd-25c8fed23892
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722292.0
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2017-08-14 00:00:00 UTC
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Applied Industrial (AIT) Q4 Earnings & Sales Beat, Up Y/Y
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DE
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https://www.nasdaq.com/articles/applied-industrial-ait-q4-earnings-sales-beat-up-y-y-2017-08-14
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nan
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nan
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Industrial equipment wholesaler, Applied Industrial Technologies, Inc.AIT reported better-than-expected results for fourth-quarter fiscal 2017 (ended Jun 30, 2017).
The company is poised to grow on the back of greater operational efficacy, robust sales and strategic business expansion.
Earnings and Revenues
Quarterly adjusted earnings came in at 78 cents per share, beating the Zacks Consensus Estimate by a penny. Also, the bottom line came in higher than the year-ago tally of 66 cents per share.
Net sales during the quarter came in at $681.5 million, up 7.5% year over year. Organic revenue growth during the quarter was 7.9% year over year. In addition, the top line surpassed the Zacks Consensus Estimate of $659 million.
The company noted that the sturdy revenue performance during the quarter was stemmed by increased acquisition-related volume, which was partially offset by unfavorable foreign currency translation impact.
Adjusted earnings for fiscal 2017 came in at $2.84 per share, higher than $2.37 per share earned in the comparable period last year.
Net sales for fiscal 2017 were $2,593.7 million compared to $2,519.4 million recorded in the year-ago quarter.
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise
Applied Industrial Technologies, Inc. Price, Consensus and EPS Surprise | Applied Industrial Technologies, Inc. Quote
Costs and Margins
Cost of sales in the reported quarter was $485.4 million, up 6.5% year over year. Gross profit margin came in at 28.8%, expanding 70 basis points (bps) year over year.
Selling, general and administrative expenses (including depreciation) were $147.9 million compared to $136 million incurred in the year-earlier period.
Operating income in fiscal fourth quarter was $48.2 million, as against $42.4 million recorded in the prior-year quarter.
Goss profit margin for fiscal 2017 came in at 28.4%, advancing 30 bps year over year. Operating income in the fiscal 2017 was $174.6 million compared to $88.8 million recorded in at the end of fiscal 2016.
Balance Sheet & Cash Flow
Exiting the fiscal 2017, Applied Industrial Technologies had cash and cash equivalents of $105.1 million compared with $59.9 million recorded at the end of fiscal 2016. The company's long-term debt was $286.8 million, down 11.7% from fiscal 2016 end.
For fiscal 2017, the company generated net cash of $164.6 million from its operating activities compared to $162 million cash generated in the year-earlier period.
In fiscal 2017, Applied Industrial Technologies purchased property worth $17 million compared with $13.1 million property purchased at the end of the prior fiscal 2016.
In fiscal 2017, this Zacks Rank #2 (Buy) company purchased 162,500 shares in the open market for $8.2 million. On the other hand, cash used for dividend payment in the fiscal year totaled $44.6 million.
Outlook
Applied Industrial Technologies anticipates to bolster its sales by 3-5% in fiscal 2018 (ending June 2018). Adjusted earnings for fiscal 2018 are projected in the range of $3.00-$3.20 per share.
Other Stocks to Consider
Other top-ranked stocks in the industry are listed below;
AGCO Corporation AGCO , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Apogee Enterprises, Inc. APOG has an average positive earnings surprise of 3.42% for the last four quarters and currently carries a Zacks Rank #2.
Deere & Company DE also holds a Zacks Rank #2 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters.
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If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
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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
Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): 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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5 Trades Could Profit ""Big-League"" from Trump Policies If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. Industrial equipment wholesaler, Applied Industrial Technologies, Inc.AIT reported better-than-expected results for fourth-quarter fiscal 2017 (ended Jun 30, 2017).
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Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Industrial equipment wholesaler, Applied Industrial Technologies, Inc.AIT reported better-than-expected results for fourth-quarter fiscal 2017 (ended Jun 30, 2017). Net sales for fiscal 2017 were $2,593.7 million compared to $2,519.4 million recorded in the year-ago quarter.
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Balance Sheet & Cash Flow Exiting the fiscal 2017, Applied Industrial Technologies had cash and cash equivalents of $105.1 million compared with $59.9 million recorded at the end of fiscal 2016. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report To read this article on Zacks.com click here. Industrial equipment wholesaler, Applied Industrial Technologies, Inc.AIT reported better-than-expected results for fourth-quarter fiscal 2017 (ended Jun 30, 2017).
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Industrial equipment wholesaler, Applied Industrial Technologies, Inc.AIT reported better-than-expected results for fourth-quarter fiscal 2017 (ended Jun 30, 2017). Net sales for fiscal 2017 were $2,593.7 million compared to $2,519.4 million recorded in the year-ago quarter. Selling, general and administrative expenses (including depreciation) were $147.9 million compared to $136 million incurred in the year-earlier period.
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6325a5ca-dd78-4341-9561-927be0b7d061
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722293.0
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2017-08-11 00:00:00 UTC
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RBC Bearings (ROLL) Poised to Grow on Robust Growth Drivers
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DE
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https://www.nasdaq.com/articles/rbc-bearings-roll-poised-to-grow-on-robust-growth-drivers-2017-08-11
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On Aug 10, we issued an updated research report on premium industrial goods firm, RBC Bearings Inc.ROLL . The company boasts impressive prospects in the quarters, making it a good investment choice for investors seeking exposure in the machinery industry.
Over the last month, shares of this Zacks Rank #2 (Buy) stock yielded a return of 2.56%, as against 1.44% loss incurred by the industry .
The company delivered a positive earnings surprise of 11% in first-quarter fiscal 2018 (ended Jul 1, 2017). It offers services across a broad range of end markets, but classifies its customers into two chief categories - industrial and aerospace. Aerospace sales improved 2.8% on the back of rise in aftermarket and distribution activities, as well as significant growth in aerospace original equipment manufacturing. In addition, industrial revenues climbed 12.1% year over year on the back of strong semiconductor, mining, general industrial and energy market sales. We believe that persistence of these optimistic aspects will likely bolster RBC Bearings' revenues in the quarters ahead.
RBC Bearings has also been trying to boost its profitability on the back of wider margins. Greater cost discipline and stronger volume are anticipated to improve near-term margins. Additionally, efficacious integration of the Sargent business (acquired in Apr 2015) will likely boost bottom-line performance in the quarters ahead.
Notably, the company anticipates this strategic buyout to add nearly $7.5 million synergies in the five years, following the closure of the deal in 2015.
Furthermore, RBC Bearings intends to lower its debt burden, buy back shares and fund growth-oriented investments with increased cash flow generation.
Other Stocks to Consider
Other top-ranked stocks in the industry are listed below;
AGCO Corporation AGCO , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Apogee Enterprises, Inc. APOG has an average positive earnings surprise of 3.42% for the last four quarters and currently carries a Zacks Rank #2.
Deere & Company DE carries a Zacks Rank #2 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters.
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Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
RBC Bearings Incorporated (ROLL): 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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Furthermore, RBC Bearings intends to lower its debt burden, buy back shares and fund growth-oriented investments with increased cash flow generation. Over the last month, shares of this Zacks Rank #2 (Buy) stock yielded a return of 2.56%, as against 1.44% loss incurred by the industry . The company delivered a positive earnings surprise of 11% in first-quarter fiscal 2018 (ended Jul 1, 2017).
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Other Stocks to Consider Other top-ranked stocks in the industry are listed below; AGCO Corporation AGCO , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report RBC Bearings Incorporated (ROLL): Free Stock Analysis Report To read this article on Zacks.com click here. Over the last month, shares of this Zacks Rank #2 (Buy) stock yielded a return of 2.56%, as against 1.44% loss incurred by the industry .
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Other Stocks to Consider Other top-ranked stocks in the industry are listed below; AGCO Corporation AGCO , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. Deere & Company DE carries a Zacks Rank #2 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report RBC Bearings Incorporated (ROLL): Free Stock Analysis Report To read this article on Zacks.com click here.
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RBC Bearings has also been trying to boost its profitability on the back of wider margins. Other Stocks to Consider Other top-ranked stocks in the industry are listed below; AGCO Corporation AGCO , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. Over the last month, shares of this Zacks Rank #2 (Buy) stock yielded a return of 2.56%, as against 1.44% loss incurred by the industry .
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722294.0
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2017-08-10 00:00:00 UTC
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Middleby (MIDD) Q2 Earnings Beat by a Penny, Revenues Miss
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https://www.nasdaq.com/articles/middleby-midd-q2-earnings-beat-by-a-penny-revenues-miss-2017-08-10
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Machinery behemoth, The Middleby CorporationMIDD reported mixed second-quarter 2017 results.
Quarter in Details
The company's quarterly adjusted earnings (excluding the impact of restructuring expenses of 4 cents per share) came in at $1.39 per share, beating the Zacks Consensus Estimate by a penny. The bottom line also came in higher than the year-ago tally of $1.35 per share.
Net sales during the quarter came in at $579.3 million, marginally down 0.2% year over year. In addition, the top line missed the Zacks Consensus Estimate of $587 million. The company noted that though increased sales generated from the acquired businesses bolstered sales in the quarter, foreign currency translation adversely affected the same.
Segmental Details
Revenues from the Commercial Foodservice Equipment Group increased 4% on a year-over-year basis to $333.8 million.
Revenues from the Food Processing Equipment Group improved 10.7% year over year in the quarter to $92.4 million.
Revenues from the Residential Kitchen Equipment Group declined 13% year over year to $153.2 million.
Costs and Margins
Cost of sales in the quarter was $344.7 million compared to $347 million recorded in the year-ago quarter. Gross profit margin in the reported quarter came in at 40.5%, expanding 30 basis points (year over year). The upswing was stemmed by the successful restructuring activities of the AGA Group.
Selling, general and administrative expenses were $113 million, as against $115.2 million in the incurred year-ago period. Operating margin came in at 21.1%, advancing 180 bps year over year.
Balance Sheet
Middleby exited the second quarter with cash and cash equivalents of $64.9 million, as against $68.5 million recorded at the end of 2016. Long-term debt was $798.4 million compared with $726.2 million recorded as on Dec 31, 2016.
Outlook
This Zacks Rank #3 (Hold) company anticipates new product offerings under its Commercial Foodservice Equipment Group business segment to boost demand from restaurant chain customers. Furthermore, construction of new food processing facilities in the emerging economies, investments over industrial bakery brands, as well as opening of the company's industrial baking center in Plano, TX will likely bolster revenues of the Food Processing Equipment Group business segment. Notably, superior customer services and product launches are also projected to improve the performance of
Residential Kitchen Equipment Group segment in the near term.
Stocks to Consider
Some better-ranked stocks in the industry are listed below;
AGCO Corporation AGCO , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Apogee Enterprises, Inc. APOG has an average positive earnings surprise of 3.42% for the last four quarters and currently carries a Zacks Rank #2 (Buy).
Deere & Company DE carries a Zacks Rank #2 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters.
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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
Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
The Middleby Corporation (MIDD): 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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Outlook This Zacks Rank #3 (Hold) company anticipates new product offerings under its Commercial Foodservice Equipment Group business segment to boost demand from restaurant chain customers. Notably, superior customer services and product launches are also projected to improve the performance of Residential Kitchen Equipment Group segment in the near term. Deere & Company DE carries a Zacks Rank #2 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters.
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Stocks to Consider Some better-ranked stocks in the industry are listed below; AGCO Corporation AGCO , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report To read this article on Zacks.com click here. Quarter in Details The company's quarterly adjusted earnings (excluding the impact of restructuring expenses of 4 cents per share) came in at $1.39 per share, beating the Zacks Consensus Estimate by a penny.
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Costs and Margins Cost of sales in the quarter was $344.7 million compared to $347 million recorded in the year-ago quarter. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report To read this article on Zacks.com click here. Quarter in Details The company's quarterly adjusted earnings (excluding the impact of restructuring expenses of 4 cents per share) came in at $1.39 per share, beating the Zacks Consensus Estimate by a penny.
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Costs and Margins Cost of sales in the quarter was $344.7 million compared to $347 million recorded in the year-ago quarter. Quarter in Details The company's quarterly adjusted earnings (excluding the impact of restructuring expenses of 4 cents per share) came in at $1.39 per share, beating the Zacks Consensus Estimate by a penny. Segmental Details Revenues from the Commercial Foodservice Equipment Group increased 4% on a year-over-year basis to $333.8 million.
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722295.0
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2017-08-09 00:00:00 UTC
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RBC Bearings (ROLL) Tops Q1 Earnings & Revenue Estimates
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DE
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https://www.nasdaq.com/articles/rbc-bearings-roll-tops-q1-earnings-revenue-estimates-2017-08-09
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Premium machine tools & accessories company, RBC Bearings IncorporatedROLL reported better-than-expected earnings for first-quarter fiscal 2018 (ended Jul 1, 2017).
Earnings and Revenues
Quarterly earnings came in at 91 cents per share, beating the Zacks Consensus Estimate of 82 cents per share. The bottom line also came way ahead of the year-ago tally of 77 cents per share.
Net sales in the reported quarter came in at $163.9 million, surpassing the Zacks Consensus Estimate of $161 million. In addition, the top line came in 6% higher than the year-ago figure. The upswing was stemmed by sturdy sales in both aerospace and industrial end markets.
Segmental Performance
Plain Bearings revenues improved 3.1% year over year to $72.7 million, while Roller Bearings sales climbed 12.9% to $31.4 million. Ball Bearings sales came in at $15.8 million, up 15.1% year over year. Engineered Products sales were up 3.4% year over year to $44.1 million.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
RBC Bearings Incorporated Price, Consensus and EPS Surprise | RBC Bearings Incorporated Quote
Costs and Margins
Cost of sales in the reported quarter was $102 million, up 4.8% year over year. Adjusted gross margin came in at 37.8%, expanding 50 basis points (bps) year over year. The upside was driven by solid volume and greater cost discipline.
Selling, general and administrative expenses during the quarter came in at $27.8 million, up 7.7% year over year. Adjusted operating margin came in at 19.4% during the fiscal first quarter, advancing 20 bps year over year.
Other Financial Fundamentals
Existing the fiscal first year, RBC Bearings had cash and cash equivalents worth $45.5 million compared to $38.9 million recorded as of Apr 1, 2017.
In the reported quarter, RBC Bearings generated $39.8 million of cash from its operating activities as against $19.2 million in the prior-year quarter. Capital spending increased 9.5% year over year to $5.7 million.
Total debt for the quarter came in at $237.9 million, lower than $343.8 million recorded on Jul 2, 2016.
Outlook
RBC Bearings intends to lower its debt burden, introduce share buyback programs and fund growth oriented investments with increased cash flow generation. This Zacks Rank #3 (Hold) company also noted that demand from its major end markets is likely to shoot up in the upcoming quarters.
Key Picks
A few better-ranked stocks in the industry are listed below:
AGCO Corporation AGCO , which sports a Zacks Rank #1 (Strong Buy) at present, generated an average positive earnings surprise of 39.70% over the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here .
Apogee Enterprises, Inc. APOG has an average positive earnings surprise of 3.42% for the last four quarters and currently carries a Zacks Rank #2 (Buy).
Deere & Company DE carries a Zacks Rank #2 and has a remarkable average positive earnings surprise of 70.41% for the past four quarters.
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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
Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
RBC Bearings Incorporated (ROLL): 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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Premium machine tools & accessories company, RBC Bearings IncorporatedROLL reported better-than-expected earnings for first-quarter fiscal 2018 (ended Jul 1, 2017). Outlook RBC Bearings intends to lower its debt burden, introduce share buyback programs and fund growth oriented investments with increased cash flow generation. The upside was driven by solid volume and greater cost discipline.
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Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report RBC Bearings Incorporated (ROLL): Free Stock Analysis Report To read this article on Zacks.com click here. Premium machine tools & accessories company, RBC Bearings IncorporatedROLL reported better-than-expected earnings for first-quarter fiscal 2018 (ended Jul 1, 2017). The upside was driven by solid volume and greater cost discipline.
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Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report RBC Bearings Incorporated (ROLL): Free Stock Analysis Report To read this article on Zacks.com click here. Premium machine tools & accessories company, RBC Bearings IncorporatedROLL reported better-than-expected earnings for first-quarter fiscal 2018 (ended Jul 1, 2017). The upside was driven by solid volume and greater cost discipline.
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Premium machine tools & accessories company, RBC Bearings IncorporatedROLL reported better-than-expected earnings for first-quarter fiscal 2018 (ended Jul 1, 2017). The upside was driven by solid volume and greater cost discipline. Other Financial Fundamentals Existing the fiscal first year, RBC Bearings had cash and cash equivalents worth $45.5 million compared to $38.9 million recorded as of Apr 1, 2017.
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2017-08-08 00:00:00 UTC
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Enersys (ENS) to Report Q1 Earnings: Is a Surprise in Store?
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https://www.nasdaq.com/articles/enersys-ens-to-report-q1-earnings%3A-is-a-surprise-in-store-2017-08-08
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Industrial battery manufacturer EnersysENS is slated to release first-quarter fiscal 2018 results on Aug 10. Last quarter, the company's adjusted earnings beat the Zacks Consensus Estimate of $1.21 by 5.8%.
The company has an excellent earnings surprise history, with an average positive surprise of 5.08% for the trailing four quarters. Enersys scored its fifth consecutive earnings beat in the last reported quarter, beating estimates by 5.8%.
Enersys Price and EPS Surprise
Enersys Price and EPS Surprise | Enersys Quote
Let's see how things are shaping up for this announcement.
Factors at Play
Over the past few quarters, healthy demand for batteries from energy-storage products, commercial trucks, and aerospace and defense applications has proved conducive to EnerSys' growth. The company has been taking concerted efforts to boost its total market share, which it believes can expand up to $14 billion by 2025. We believe these efforts will stoke top-line performance for the soon-to-be-reported quarter.
The company has an interesting lineup of product launches, which, it believes, will stoke growth in the quarter to be reported. As a matter of fact, rise in the sale of premium products (which exceeded 41% of net sales) has significantly boosted top-line performance. Recently, the company has launched several premium products which are expected to drive growth.
Moreover, EnerSys' strategic acquisitions have supplemented its core revenue growth over the past few quarters. Previously completed buyouts of Australia-based ICS Industries and The Enser Corporation are expected to boost fiscal first-quarter 2018 sales of stored energy and aerospace & defense business, respectively.
However, on the flip side, rising cost of raw materials are expected to inflate the cost of goods sold, thus eroding profitability for the upcoming results. In light of sharply rising lead cost, customers are placing more orders at old prices, which is hurting profits. The company expects the gross profit rate in the fiscal first quarter to decline to approximately 26%, attributable to higher lead cost.
A significant portion of the company's revenues and expenses are denominated in foreign currencies. This makes it vulnerable to fluctuations in exchange rates. A stronger U.S. currency might hurt foreign revenues and earnings in the quarter. We believe currency fluctuations to put pressure on top-line growth and margins for the quarter under review.
A stronger U.S. currency might hurt foreign revenues and earnings in the quarter.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for Enersys this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Zacks ESP: Earnings ESP for the company is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.13. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Enersys has a Zacks Rank #3, which increases the predictive power of the ESP. However, the company's ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Graco Inc. GGG , with an Earnings ESP of +0.96% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company DE , with an Earnings ESP of +5.32% and a Zacks Rank #2.
Altra Industrial Motion Corp. AIMC , with an Earnings ESP of +2.17% and a Zacks Rank #1.
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Deere & Company (DE): Free Stock Analysis Report
Graco Inc. (GGG): Free Stock Analysis Report
Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
Enersys (ENS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factors at Play Over the past few quarters, healthy demand for batteries from energy-storage products, commercial trucks, and aerospace and defense applications has proved conducive to EnerSys' growth. Previously completed buyouts of Australia-based ICS Industries and The Enser Corporation are expected to boost fiscal first-quarter 2018 sales of stored energy and aerospace & defense business, respectively. The company expects the gross profit rate in the fiscal first quarter to decline to approximately 26%, attributable to higher lead cost.
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Click to get this free report Deere & Company (DE): Free Stock Analysis Report Graco Inc. (GGG): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play Over the past few quarters, healthy demand for batteries from energy-storage products, commercial trucks, and aerospace and defense applications has proved conducive to EnerSys' growth. As a matter of fact, rise in the sale of premium products (which exceeded 41% of net sales) has significantly boosted top-line performance.
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Click to get this free report Deere & Company (DE): Free Stock Analysis Report Graco Inc. (GGG): Free Stock Analysis Report Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play Over the past few quarters, healthy demand for batteries from energy-storage products, commercial trucks, and aerospace and defense applications has proved conducive to EnerSys' growth. As a matter of fact, rise in the sale of premium products (which exceeded 41% of net sales) has significantly boosted top-line performance.
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Stocks to Consider Graco Inc. GGG , with an Earnings ESP of +0.96% and a Zacks Rank #2. Factors at Play Over the past few quarters, healthy demand for batteries from energy-storage products, commercial trucks, and aerospace and defense applications has proved conducive to EnerSys' growth. As a matter of fact, rise in the sale of premium products (which exceeded 41% of net sales) has significantly boosted top-line performance.
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11ab0d04-85b2-4d39-ade1-8a03b383e3e1
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722297.0
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2017-08-07 00:00:00 UTC
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Point View Financial Services, Inc. Buys DXC Technology Co, Baker Hughes Inc, Helmerich & ...
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DE
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https://www.nasdaq.com/articles/point-view-financial-services-inc-buys-dxc-technology-co-baker-hughes-inc-helmerich-2017
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nan
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nan
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Point View Financial Services, Inc.
New Purchases: BHI , LLY , SPGI , DGX, HSBC, IGR, EC,
Added Positions:DXC, HP, HBI, XOM, ASA, SYF, COP, IBM, EMR, SAM,
Reduced Positions:TGT, DE, KGC, NOV, SAFM, TRN, ING, IX, LQD, KSS,
Sold Out:BHGE, BNPQY, HES, TXN, SLB,
For the details of Point View Financial Services, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Point+View+Financial+Services%2C+Inc.
These are the top 5 holdings of Point View Financial Services, Inc.
Microsoft Corp ( MSFT ) - 55,190 shares, 2.04% of the total portfolio. Shares reduced by 0.84%
Exxon Mobil Corp ( XOM ) - 41,068 shares, 1.78% of the total portfolio. Shares added by 11.71%
Deere & Co ( DE ) - 25,823 shares, 1.71% of the total portfolio. Shares reduced by 1.44%
Western Asset/Claymore Inflation-Linked Opportunit ( WIW ) - 287,247 shares, 1.7% of the total portfolio.
Tyson Foods Inc ( TSN ) - 48,730 shares, 1.64% of the total portfolio.
New Purchase: Baker Hughes Inc (BHI)
Point View Financial Services, Inc. initiated holdings in Baker Hughes Inc. The purchase prices were between $53.37 and $61.71, with an estimated average price of $57.6. The stock is now traded at around $57.68. The impact to the portfolio due to this purchase was 0.66%. The holdings were 22,497 shares as of 2017-06-30.
New Purchase: S&P Global Inc (SPGI)
Point View Financial Services, Inc. initiated holdings in S&P Global Inc. The purchase prices were between $128.28 and $149.4, with an estimated average price of $138.61. The stock is now traded at around $151.22. The impact to the portfolio due to this purchase was 0.12%. The holdings were 1,520 shares as of 2017-06-30.
New Purchase: Eli Lilly and Co (LLY)
Point View Financial Services, Inc. initiated holdings in Eli Lilly and Co. The purchase prices were between $76.98 and $86.25, with an estimated average price of $81.63. The stock is now traded at around $81.97. The impact to the portfolio due to this purchase was 0.12%. The holdings were 2,608 shares as of 2017-06-30.
New Purchase: Quest Diagnostics Inc (DGX)
Point View Financial Services, Inc. initiated holdings in Quest Diagnostics Inc. The purchase prices were between $97.11 and $111.11, with an estimated average price of $105.53. The stock is now traded at around $106.44. The impact to the portfolio due to this purchase was 0.11%. The holdings were 1,831 shares as of 2017-06-30.
New Purchase: HSBC Holdings PLC (HSBC)
Point View Financial Services, Inc. initiated holdings in HSBC Holdings PLC. The purchase prices were between $39.73 and $46.53, with an estimated average price of $42.63. The stock is now traded at around $49.97. The impact to the portfolio due to this purchase was 0.11%. The holdings were 4,623 shares as of 2017-06-30.
New Purchase: CBRE Clarion Global Real Estate Income Fund (IGR)
Point View Financial Services, Inc. initiated holdings in CBRE Clarion Global Real Estate Income Fund. The purchase prices were between $7.38 and $7.82, with an estimated average price of $7.62. The stock is now traded at around $7.92. The impact to the portfolio due to this purchase was 0.11%. The holdings were 25,511 shares as of 2017-06-30.
Added: DXC Technology Co (DXC)
Point View Financial Services, Inc. added to the holdings in DXC Technology Co by 459.18%. The purchase prices were between $67.95 and $80.59, with an estimated average price of $76.6. The stock is now traded at around $78.74. The impact to the portfolio due to this purchase was 0.98%. The holdings were 28,798 shares as of 2017-06-30.
Added: Helmerich & Payne Inc (HP)
Point View Financial Services, Inc. added to the holdings in Helmerich & Payne Inc by 26.03%. The purchase prices were between $50.08 and $69.08, with an estimated average price of $58.83. The stock is now traded at around $48.48. The impact to the portfolio due to this purchase was 0.26%. The holdings were 43,508 shares as of 2017-06-30.
Added: Hanesbrands Inc (HBI)
Point View Financial Services, Inc. added to the holdings in Hanesbrands Inc by 23.86%. The purchase prices were between $20.24 and $22.99, with an estimated average price of $21.54. The stock is now traded at around $24.36. The impact to the portfolio due to this purchase was 0.21%. The holdings were 87,659 shares as of 2017-06-30.
Added: Synchrony Financial (SYF)
Point View Financial Services, Inc. added to the holdings in Synchrony Financial by 58.55%. The purchase prices were between $26.5 and $34.3, with an estimated average price of $29.72. The stock is now traded at around $30.00. The impact to the portfolio due to this purchase was 0.15%. The holdings were 24,922 shares as of 2017-06-30.
Added: Boston Beer Co Inc (SAM)
Point View Financial Services, Inc. added to the holdings in Boston Beer Co Inc by 85.19%. The purchase prices were between $129.9 and $148.6, with an estimated average price of $140.1. The stock is now traded at around $148.70. The impact to the portfolio due to this purchase was 0.12%. The holdings were 3,563 shares as of 2017-06-30.
Added: Emerson Electric Co (EMR)
Point View Financial Services, Inc. added to the holdings in Emerson Electric Co by 23.41%. The purchase prices were between $57.44 and $61.38, with an estimated average price of $59.28. The stock is now traded at around $61.26. The impact to the portfolio due to this purchase was 0.12%. The holdings were 18,946 shares as of 2017-06-30.
Sold Out: Baker Hughes, a GE Co (BHGE)
Point View Financial Services, Inc. sold out the holdings in Baker Hughes, a GE Co. The sale prices were between $53.37 and $61.71, with an estimated average price of $57.6.
Sold Out: Texas Instruments Inc (TXN)
Point View Financial Services, Inc. sold out the holdings in Texas Instruments Inc. The sale prices were between $76.9 and $84.34, with an estimated average price of $80.22.
Sold Out: BNP Paribas (BNPQY)
Point View Financial Services, Inc. sold out the holdings in BNP Paribas. The sale prices were between $30.84 and $38.01, with an estimated average price of $35.
Sold Out: Hess Corp (HES)
Point View Financial Services, Inc. sold out the holdings in Hess Corp. The sale prices were between $40.31 and $51.11, with an estimated average price of $46.81.
Sold Out: Schlumberger Ltd (SLB)
Point View Financial Services, Inc. sold out the holdings in Schlumberger Ltd. The sale prices were between $65.25 and $79.65, with an estimated average price of $71.85.
Warning! GuruFocus has detected 5 Warning Sign with DXC. Click here to check it out.
DXC 15-Year Financial Data
The intrinsic value of DXC
Peter Lynch Chart of DXC
Premium Members
This article first appeared on GuruFocus .
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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Point View Financial Services, Inc. New Purchases: BHI , LLY , SPGI , DGX, HSBC, IGR, EC, Added Positions:DXC, HP, HBI, XOM, ASA, SYF, COP, IBM, EMR, SAM, Reduced Positions:TGT, DE, KGC, NOV, SAFM, TRN, ING, IX, LQD, KSS, Sold Out:BHGE, BNPQY, HES, TXN, SLB, For the details of Point View Financial Services, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Point+View+Financial+Services%2C+Inc. Shares added by 11.71% Deere & Co ( DE ) - 25,823 shares, 1.71% of the total portfolio. The stock is now traded at around $57.68.
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Point View Financial Services, Inc. New Purchases: BHI , LLY , SPGI , DGX, HSBC, IGR, EC, Added Positions:DXC, HP, HBI, XOM, ASA, SYF, COP, IBM, EMR, SAM, Reduced Positions:TGT, DE, KGC, NOV, SAFM, TRN, ING, IX, LQD, KSS, Sold Out:BHGE, BNPQY, HES, TXN, SLB, For the details of Point View Financial Services, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Point+View+Financial+Services%2C+Inc. Shares added by 11.71% Deere & Co ( DE ) - 25,823 shares, 1.71% of the total portfolio. The stock is now traded at around $57.68.
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Point View Financial Services, Inc. New Purchases: BHI , LLY , SPGI , DGX, HSBC, IGR, EC, Added Positions:DXC, HP, HBI, XOM, ASA, SYF, COP, IBM, EMR, SAM, Reduced Positions:TGT, DE, KGC, NOV, SAFM, TRN, ING, IX, LQD, KSS, Sold Out:BHGE, BNPQY, HES, TXN, SLB, For the details of Point View Financial Services, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Point+View+Financial+Services%2C+Inc. Added: Synchrony Financial (SYF) Point View Financial Services, Inc. added to the holdings in Synchrony Financial by 58.55%. Shares added by 11.71% Deere & Co ( DE ) - 25,823 shares, 1.71% of the total portfolio.
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Point View Financial Services, Inc. New Purchases: BHI , LLY , SPGI , DGX, HSBC, IGR, EC, Added Positions:DXC, HP, HBI, XOM, ASA, SYF, COP, IBM, EMR, SAM, Reduced Positions:TGT, DE, KGC, NOV, SAFM, TRN, ING, IX, LQD, KSS, Sold Out:BHGE, BNPQY, HES, TXN, SLB, For the details of Point View Financial Services, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Point+View+Financial+Services%2C+Inc. Shares added by 11.71% Deere & Co ( DE ) - 25,823 shares, 1.71% of the total portfolio. The stock is now traded at around $57.68.
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ba2c4991-9d73-4c68-8c59-2a2178d9152b
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722298.0
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2017-08-04 00:00:00 UTC
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Can TransDigm (TDG) Maintain its Earnings Streak in Q3?
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DE
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https://www.nasdaq.com/articles/can-transdigm-tdg-maintain-its-earnings-streak-in-q3-2017-08-04
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nan
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nan
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TransDigm Group IncorporatedTDG is slated to report third-quarter fiscal 2017 results before the opening bell on May 9.
The company has an excellent earnings surprise history, with an average positive surprise of 3.7% for the trailing four quarters. TransDigm scored its fifth consecutive earnings beat in the last reported quarter, beating estimates by 1.0%.
We expect the company to score an earnings beat in the about-to-be-reported quarter.
Why a Likely Positive Surprise?
Our proven model shows an earnings beat for TransDigm as it possesses the key components.
Zacks ESP:Earnings ESP for TransDigm is +1.01% as the Most Accurate estimate is pegged at $3.01, higher than the Zacks Consensus Estimate of $2.98. A positive Zacks 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 .
Transdigm Group Incorporated Price and EPS Surprise
Transdigm Group Incorporated Price and EPS Surprise | Transdigm Group Incorporated Quote
Zacks Rank: TransDigm holds a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) has a significantly higher chance of beating earnings estimates.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The favorable combination of TransDigm's Zacks Rank #2 and +1.01% ESP makes us reasonably confident of a positive earnings beat.
Growth Factors to Consider
TransDigm's fiscal third-quarter top line is likely to benefit from its thriving commercial aftermarket business. It boasts higher margins and comprises only 55% of sales, but makes up over 75% of EBITDA. This translates into consistent revenue generation capacity through all phases of the aerospace cycle.
This market is expanding as the majority of aircraft bought during the financial crisis is beginning to age, and requires more frequent and comprehensive servicing. In addition, strategic acquisitions made over the past few years are likely to supplement TransDigm's sales for the quarter under review. During the quarter, the company acquired three add-on aerospace product lines for roughly $100 million. The product lines mainly comprise proprietary, sole-source products with significant aftermarket content.
These acquisitions are expected to boost aftermarket sales further. As a matter of fact, during 2016, TransDigm acquired numerous businesses, including DDC, Breeze-Eastern and Young & Franklin/Tactair. During the fiscal second quarter, the company's top line rose an impressive 9.6% year over year, as its accretive acquisitions contributed $70 million to sales.
This apart, TransDigm's business operation model, which implements value-based operating strategies, is quite well proven and is likely to boost margins. Encouragingly, this overarching business model has helped the company strengthen its foothold in highly-engineered proprietary aerospace components' niche markets.
Other Stocks That Warrant a Look
Here are some other 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.
JELD-WEN Holding, Inc. JELD has an Earnings ESP of +7.69% and a Zacks Rank #2.
CACI International Inc CACI has an Earnings ESP of +1.83% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Deere & Company DE has an Earnings ESP of +5.32% and a Zacks Rank #2.
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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
Transdigm Group Incorporated (TDG): Free Stock Analysis Report
JELD-WEN Holding, Inc. (JELD): Free Stock Analysis Report
CACI International, Inc. (CACI): 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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Encouragingly, this overarching business model has helped the company strengthen its foothold in highly-engineered proprietary aerospace components' niche markets. Our proven model shows an earnings beat for TransDigm as it possesses the key components. The favorable combination of TransDigm's Zacks Rank #2 and +1.01% ESP makes us reasonably confident of a positive earnings beat.
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Click to get this free report Transdigm Group Incorporated (TDG): Free Stock Analysis Report JELD-WEN Holding, Inc. (JELD): Free Stock Analysis Report CACI International, Inc. (CACI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows an earnings beat for TransDigm as it possesses the key components. The favorable combination of TransDigm's Zacks Rank #2 and +1.01% ESP makes us reasonably confident of a positive earnings beat.
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Click to get this free report Transdigm Group Incorporated (TDG): Free Stock Analysis Report JELD-WEN Holding, Inc. (JELD): Free Stock Analysis Report CACI International, Inc. (CACI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows an earnings beat for TransDigm as it possesses the key components. The favorable combination of TransDigm's Zacks Rank #2 and +1.01% ESP makes us reasonably confident of a positive earnings beat.
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The favorable combination of TransDigm's Zacks Rank #2 and +1.01% ESP makes us reasonably confident of a positive earnings beat. Our proven model shows an earnings beat for TransDigm as it possesses the key components. Growth Factors to Consider TransDigm's fiscal third-quarter top line is likely to benefit from its thriving commercial aftermarket business.
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e9c6ee2e-a99a-4d4a-b4ca-360156525fb1
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722299.0
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2017-08-03 00:00:00 UTC
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Sealed Air (SEE) Q2 Earnings: Will the Stock Pull off a Beat?
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DE
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https://www.nasdaq.com/articles/sealed-air-see-q2-earnings%3A-will-the-stock-pull-off-a-beat-2017-08-03
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nan
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nan
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Sealed Air CorporationSEE will release second-quarter 2017 results on Aug 8, before the opening bell.
In the first quarter, Sealed Air's top line and bottom line declined on a year-over-year basis. Sealed Air also lagged earnings estimates by 6.52% in the last reported quarter.
The company has delivered an average negative earnings surprise of 0.55% in the trailing four quarters. Let's see how things are shaping up for this announcement.
Sealed Air Corporation Price and EPS Surprise
Sealed Air Corporation Price and EPS Surprise | Sealed Air Corporation Quote
Earnings Whispers
Our proven model shows that Sealed Air 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 Sealed Air is +1.82%. This is because the Most Accurate estimate of 37 cents is pegged higher than the Zacks Consensus Estimate of 36 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Sealed Air currently carries a Zacks Rank #3. The combination of a favorable rank and positive ESP makes us reasonably confident of an earnings beat.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors At Play
Sealed Air's top-line will be supported by enhanced demand for its core product portfolio, recently-introduced innovations, and accelerated growth in the global protein market along with the eCommerce sector. Growth in red meat production this year could lead to a sizable pickup in North American Food Care operations. Overall, within Food Care, improvement will come on the back of growth in North America and improving trends in Europe, Middle East and Africa (EMEA). Within Product Care, continued expansion in the eCommerce and fulfillment markets, and stabilization in the industrial sector will help drive momentum.
However, the selective ban on the Brazilian beef export will be an impediment to volumes in Latin America. Results in APAC will be impacted as the Australia/New Zealand region rebuilds cattle herds, which is normally a two to four year process resulting in dairy markets remaining muted. Higher material costs, unfavorable impact of foreign currency will also dent results.
Share Price Performance
Sealed Air underperformed the industry in the past one year. While the stock dipped 11.6%, the industry recorded growth of 2.4%.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Deere & Company DE has an Earnings ESP of +5.32% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Regal Beloit Corporation RBC has an Earnings ESP of +0.78% and a Zacks Rank #2.
Applied Industrial Technologies, Inc. AIT has an Earnings ESP of +1.30% and a Zacks Rank #3.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
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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
Sealed Air Corporation (SEE): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Regal Beloit Corporation (RBC): 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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Factors At Play Sealed Air's top-line will be supported by enhanced demand for its core product portfolio, recently-introduced innovations, and accelerated growth in the global protein market along with the eCommerce sector. In the first quarter, Sealed Air's top line and bottom line declined on a year-over-year basis. The company has delivered an average negative earnings surprise of 0.55% in the trailing four quarters.
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Sealed Air Corporation Price and EPS Surprise Sealed Air Corporation Price and EPS Surprise | Sealed Air Corporation Quote Earnings Whispers Our proven model shows that Sealed Air is likely to beat estimates this quarter. Stocks that Warrant a Look Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter: Deere & Company DE has an Earnings ESP of +5.32% and a Zacks Rank #1. Click to get this free report Sealed Air Corporation (SEE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Regal Beloit Corporation (RBC): 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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Sealed Air Corporation Price and EPS Surprise Sealed Air Corporation Price and EPS Surprise | Sealed Air Corporation Quote Earnings Whispers Our proven model shows that Sealed Air is likely to beat estimates this quarter. Stocks that Warrant a Look Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter: Deere & Company DE has an Earnings ESP of +5.32% and a Zacks Rank #1. Click to get this free report Sealed Air Corporation (SEE): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Regal Beloit Corporation (RBC): 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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Sealed Air Corporation Price and EPS Surprise Sealed Air Corporation Price and EPS Surprise | Sealed Air Corporation Quote Earnings Whispers Our proven model shows that Sealed Air is likely to beat estimates this quarter. Stocks that Warrant a Look Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter: Deere & Company DE has an Earnings ESP of +5.32% and a Zacks Rank #1. In the first quarter, Sealed Air's top line and bottom line declined on a year-over-year basis.
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d368031f-9c82-4252-ba41-b0d4ca6c6d9e
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