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722600.0
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2016-08-19 00:00:00 UTC
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Deere (DE) Tops Q3 Earnings, Misses Sales, Revises View
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DE
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https://www.nasdaq.com/articles/deere-de-tops-q3-earnings-misses-sales-revises-view-2016-08-19
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nan
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nan
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Deere & Company 's DE third-quarter fiscal 2016 (ended Jul 31, 2016) earnings increased around 1.3% year over year to $1.55 per share. Earnings also topped the Zacks Consensus Estimate of 95 cents.
Operational Update
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $5.86 billion, down roughly 14% year over year. Revenues also lagged the Zacks Consensus Estimate of $5.996 billion. Region-wise, equipment net sales were down 16% in the U.S. and Canada, and 12% in the rest of the world.
Cost of sales in the quarter decreased 16% year over year to $4.49 billion. Gross profit in the quarter came in at $1.37 million, down 6.8% year over year. Selling, administrative and general expenses dropped 6% to $709 million. Operating profit declined around 9% year over year to $658 million.
Operating income from equipment operations increased 4% year over year to $625 million driven by price realization, lower production costs and a decrease in selling, administrative and general expenses, partially offset by reduced shipment volumes and the unfavorable effects of foreign-currency exchange.
Segment Performance
Agriculture & Turf segment's sales declined 11% year over year to $4.7 billion. Revenues were impacted by lower shipment volumes and the unfavorable effects of currency translation. These factors were partially offset by price realization. Operating profit at the segment, however, went up 21% year over year to $571 million. The improvement was primarily driven by price realization, lower production costs and lower selling, administrative and general expenses, partially offset by lower shipment volumes and unfavorable effects of foreign-currency exchange.
Construction & Forestry sales went down 24% year over year to $1.16 billion, impacted by lower shipment volumes. Operating profit at the segment declined significantly year over year to $54 million due to reduced shipment volumes and a less favorable product mix, partially offset by lower production costs, a decrease in selling, administrative and general expenses and price realization.
Net revenues at Deere's Financial Services division totaled $667 million in the reported quarter, a rise of 5% year over year. The segment's operating profit was $191 million, compared with $239 million in the prior-year quarter. Net income at the segment was $125.9 million compared with $153.4 million in the year-ago quarter. This decline was due to higher losses on residual values, less favorable financing spreads and a higher provision for credit losses.
Financial Update
Deere reported cash and cash equivalents of $3.13 billion at the end of third-quarter fiscal 2016 compared with $2.91 billion at the end of the prior-year quarter. The company reported cash from operations of $1.64 billion for the period of nine months ended Jul 31, 2016 compared with cash usage of $1.95 billion in the comparable year-ago period. As of third-quarter end, long-term borrowings totaled $4.58 billion, compared with $4.48 billion in the prior-year quarter.
DEERE & CO Price, Consensus and EPS Surprise
DEERE & CO Price, Consensus and EPS Surprise | DEERE & CO Quote
Looking Ahead
Deere revised its outlook for fiscal 2016. For fiscal 2016, the company annet income to be about $1.35 billion which is outside the prior range of $1.2 billion from $1.3 billion. It projects total equipment sales to decline 10% year over year in fiscal 2016. For the fourth quarter of fiscal 2016, sales are likely to deteriorate about 8% from the year-ago quarter. The projection includes a negative currency-translation effect of about 2% for the full year and a positive translation effect of about 1% for the fourth quarter.
Segment-wise, Deere expects Agriculture and Turf equipment sales to decline 8% in fiscal 2016, including an unfavorable currency-translation impact of about 2%. Industry sales for agricultural equipment in the U.S. and Canada are expected to be down 15%−20% in fiscal 2016 owing to low commodity prices and stagnant farm income.
In the EU28, sales are projected to be flat, down 5% due to low commodity prices and farm income, including potential pressure on the dairy sector. In South America, industry sales of tractors and combines are expected to decline 15%−20% year over year due to economic uncertainty in Brazil.
Sales in Asia are projected to be flat, down slightly, due in part to weakness in China. Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range to plateau out with a tendency to rise 5%, gaining from new products and general economic growth.
The company foresees global sales for Construction & Forestry equipment to be down about 18% in fiscal 2016, including an unfavorable currency-translation effect of about 1%. The decline reflects the impact of soft conditions in the North American energy sector. In forestry, global sales are expected to be down 5%−10% from year-ago levels. The outlook for net income from Financial Services has been reaffirmed at $480 million for fiscal 2016. The outlook reflects less-favorable financing spreads, higher losses on lease residual values and an increased provision for credit losses.
Zacks Rank
At present, Deere has a Zacks Rank #3 (Hold). Some better ranked stocks in the same sector are ACCO Brands Corporation ACCO , AO Smith Corp. AOS and Apogee Enterprises, Inc. APOG . All the three stocks carry a Zacks Rank #2 (Buy).
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APOGEE ENTRPRS (APOG): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
ACCO BRANDS CP (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.
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Segment-wise, Deere expects Agriculture and Turf equipment sales to decline 8% in fiscal 2016, including an unfavorable currency-translation impact of about 2%. Deere & Company 's DE third-quarter fiscal 2016 (ended Jul 31, 2016) earnings increased around 1.3% year over year to $1.55 per share. Cost of sales in the quarter decreased 16% year over year to $4.49 billion.
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Operating income from equipment operations increased 4% year over year to $625 million driven by price realization, lower production costs and a decrease in selling, administrative and general expenses, partially offset by reduced shipment volumes and the unfavorable effects of foreign-currency exchange. Operating profit at the segment declined significantly year over year to $54 million due to reduced shipment volumes and a less favorable product mix, partially offset by lower production costs, a decrease in selling, administrative and general expenses and price realization. Click to get this free report APOGEE ENTRPRS (APOG): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Operating income from equipment operations increased 4% year over year to $625 million driven by price realization, lower production costs and a decrease in selling, administrative and general expenses, partially offset by reduced shipment volumes and the unfavorable effects of foreign-currency exchange. Operating profit at the segment declined significantly year over year to $54 million due to reduced shipment volumes and a less favorable product mix, partially offset by lower production costs, a decrease in selling, administrative and general expenses and price realization. Click to get this free report APOGEE ENTRPRS (APOG): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Operating profit at the segment declined significantly year over year to $54 million due to reduced shipment volumes and a less favorable product mix, partially offset by lower production costs, a decrease in selling, administrative and general expenses and price realization. It projects total equipment sales to decline 10% year over year in fiscal 2016. Segment-wise, Deere expects Agriculture and Turf equipment sales to decline 8% in fiscal 2016, including an unfavorable currency-translation impact of about 2%.
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d0dd986d-c813-4782-8888-23ddbd329791
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722601.0
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2016-08-19 00:00:00 UTC
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Stock Market News for August 19, 2016
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https://www.nasdaq.com/articles/stock-market-news-for-august-19-2016-2016-08-19
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Benchmarks ended slightly higher on Thursday, boosted by gains in energy shares. Rally in oil prices helped energy shares gain traction. Oil prices officially entered into a bull market; thanks to fall in stockpiles and increase in expectations that top oil producing countries will cap output. Amid soaring oil prices, investors also digested news that Wal-Mart was raising its full-year guidance, drop in jobless claims as well as minutes from the Fed's July meeting.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) increased 0.1%, to close at 18,597.70. The S&P 500 rose 0.2% to close at 2,187.02. The tech-laden Nasdaq Composite Index closed at 5,240.15, gaining 0.2%. The fear-gauge CBOE Volatility Index (VIX) decreased 6.2% to settle at 11.43. A total of around 5.9 billion shares were traded on Thursday, lower than the last 20-session average of 6.4 billion shares. Advancers outpaced declining stocks on the NYSE. For 68% stocks that advanced, 29% declined.
What Helped Stocks Notch Marginal Gains?
Stocks eked out tepid gains as U.S. oil price stampeded into a bull-market territory yesterday. The WTI crude advanced 3.1% to settle at $48.22 a barrel, a jump of more than 20% from its recent settlement low of $39.51 on Aug 2. Adding fire to the rally was a drop in domestic crude inventories by 2.5 million barrels in the week ending Aug 12. Both Russia and Saudi Arabia's willingness to consider a collective production cap also pushed oil prices higher.
Energy shares gained the most among the S&P 500 sectors due to rise in oil prices. The Energy Select Sector SPDR (XLE) gained 2.1%, with Dow components Chevron Corporation ( CVX ) and Exxon Mobil Corporation ( XOM ) increasing 1.3% and 0.9%, respectively.
Investors also digested an upbeat outlook from another Dow component, Wal-Mart Stores, Inc. ( WMT ). The retailer now expects its earnings for fiscal 2017 to come in within the range of $4.15−$4.35 per share, up from $4.00−$4.30 per share expected previously. Shares of Wal-Mart gained 1.9%. (Read: Wal-Mart Q2 Earnings and Sales Beat on Comps Gain )
Meanwhile, number of Americans applying for unemployment benefits dropped last week, while investors kept an eye on the annual meeting of central bank chiefs to be held in Jackson Hole, Wyoming, next week. Fed officials at their July meeting played the waiting game over a rate hike, even though some argued that a stronger labor market and diminishing near-term risks to the economy call for an imminent decision on this count.
Stocks that Made Headlines
Deere Tops Q3 Earnings, Misses Sales, Revises View
Deere & Company's ( DE ) third-quarter fiscal 2016 earnings topped the Zacks Consensus Estimate, but, net sales of equipment operations lagged. ( Read more )
Gap Tops Q2 Earnings & Sales; Stock Down on View Cut
The Gap Inc. ( GPS ) delivered better-than-expected top- and bottom-line results in second-quarter fiscal 2016, but, the management curtailed its earnings outlook for fiscal 2016. ( Read more )
Ross Stores Tops Q2 Earnings & Sales, Stock Gains
Ross Stores Inc. ( ROST ) posted robust second-quarter fiscal 2016 results on impressive dd's DISCOUNT performance as well as the improvement made in the ladies' apparel business. ( Read more )
T-Mobile US Launches Unlimited Data Plan at $70
T-Mobile US ( TMUS ) will do away with all its existing data plans and instead replace it with 'T-Mobile One' plan which is supposed to give its customers endless pool of LTE data without any restrictions. ( Read more )
FDA OKs Edwards Lifesciences' Sapien 3 for Extended Use
The FDA granted an expanded indication for Edwards Lifesciences Corp.'s ( EW ) leading products - Sapien 3 and Sapien XT transcatheter heart valves (THVs) - for treating severe, symptomatic aortic stenosis (AS) patients. ( Read 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 >>
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CHEVRON CORP (CVX): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
ROSS STORES (ROST): Free Stock Analysis Report
T-MOBILE US INC (TMUS): Free Stock Analysis Report
EDWARDS LIFESCI (EW): 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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Adding fire to the rally was a drop in domestic crude inventories by 2.5 million barrels in the week ending Aug 12. Fed officials at their July meeting played the waiting game over a rate hike, even though some argued that a stronger labor market and diminishing near-term risks to the economy call for an imminent decision on this count. Benchmarks ended slightly higher on Thursday, boosted by gains in energy shares.
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( Read more ) Ross Stores Tops Q2 Earnings & Sales, Stock Gains Ross Stores Inc. ( ROST ) posted robust second-quarter fiscal 2016 results on impressive dd's DISCOUNT performance as well as the improvement made in the ladies' apparel business. Click to get this free report CHEVRON CORP (CVX): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report GAP INC (GPS): Free Stock Analysis Report ROSS STORES (ROST): Free Stock Analysis Report T-MOBILE US INC (TMUS): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report To read this article on Zacks.com click here. Benchmarks ended slightly higher on Thursday, boosted by gains in energy shares.
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( Read more ) Gap Tops Q2 Earnings & Sales; Stock Down on View Cut The Gap Inc. ( GPS ) delivered better-than-expected top- and bottom-line results in second-quarter fiscal 2016, but, the management curtailed its earnings outlook for fiscal 2016. ( Read more ) Ross Stores Tops Q2 Earnings & Sales, Stock Gains Ross Stores Inc. ( ROST ) posted robust second-quarter fiscal 2016 results on impressive dd's DISCOUNT performance as well as the improvement made in the ladies' apparel business. Click to get this free report CHEVRON CORP (CVX): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report GAP INC (GPS): Free Stock Analysis Report ROSS STORES (ROST): Free Stock Analysis Report T-MOBILE US INC (TMUS): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report To read this article on Zacks.com click here.
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Benchmarks ended slightly higher on Thursday, boosted by gains in energy shares. The tech-laden Nasdaq Composite Index closed at 5,240.15, gaining 0.2%. The fear-gauge CBOE Volatility Index (VIX) decreased 6.2% to settle at 11.43.
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a2225568-89a0-4840-9b52-305b5af96bbc
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722602.0
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2016-08-19 00:00:00 UTC
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U.S. Stocks Set For Lower Open As Major Earnings Regain Spotlight
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DE
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https://www.nasdaq.com/articles/us-stocks-set-lower-open-major-earnings-regain-spotlight-2016-08-19
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nan
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U.S. equity futures were lower ahead of Friday's regular trading session as investors again took in some
major earnings reports. John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week.
Oil was also trending lower, with the WTI benchmark recently down 0.19% and Brent Crude down 0.49%.
There were no major economic data releases set for Friday.
Private prison stocks including Corrections Corp. of America ( CXW ) and GEO Group ( GEO ) rebounded In pre-market trade following big losses Thursday -- up 9.68% and 7.64%, respectively -- after the Federal Bureau of Prisons made a decision to reduce reliance on private prisons. Canaccord Genuity said in a note to clients that although the decision was, "no doubt negative news," the selloff was overdone.
U.S. PRE-MARKET INDICATORS
-Dow Jones Industrial down 0.26%
-S&P 500 futures down 0.27%
-Nasdaq 100 futures down 0.27%
-Nasdaq 100 pre-market indicator down 0.07%
GLOBAL SENTIMENT
Nikkei up 0.36%
Hang Seng down 0.37%
Shanghai Composite up 0.13%
FTSE-100 down 0.12%
DAX-30 down 0.56%
PRE-MARKET SECTOR WATCH
(+/-) Large cap tech: mixed
(+/-) Chip stocks: mixed
(+/-) Software stocks: unchanged to lower
(+) Hardware stocks: unchanged to lower
(+/-) Internet stocks: unchanged to lower
(+/-) Oil stocks: unchanged to lower
(-) Biotech: unchanged to lower
(+/-) Drug stocks: mixed
(-) Financial stocks: mixed
(+) Retail stocks: mixed
(-) Industrial stocks: mixed
(+/-) Airlines: unchanged to lower
(+/-) Autos: mixed
UPSIDE MOVERS
(+) NWY (+14.63%) Extended gains from Thursday's after hours session after reporting better-than-expected Q2 results and guiding a narrower Q3 operating loss compared to a year earlier.
(+)FL (+4.49%) Reported Q2 earnings and revenue that topped analysts' estimates.
(+)DE (+4.30%) Topped CapIQ estimates on Q3 EPS and revenues.
(+) SMRT (+0.22%) Disclosed Q2 results below consensus but said it continues to expect new stores to increase sales an estimated 4% above comparable store sales results for the full year 2016.
DOWNSIDE MOVERS
(-) SPU (-10.95%) Disclosed in an SEC filing that its annual report for the year ended December 31 and quarterly report for the quarter ended March 31 have not been filed.
(-) BKE (-10.95%) Reported Q2 results below Street projections as comparable store sales for the period decreased 10.8% year-over-year.
(-) GPS (-3.01%) Extended losses from Thursday's after hours session guiding full year earnings below
expectations.
(-) EL (-2.83%) Reversed early pre-market session gains after beating core earnings for Q4 but guiding Q1 and full year EPS below the CapIQ mean.
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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John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week. (+) NWY (+14.63%) Extended gains from Thursday's after hours session after reporting better-than-expected Q2 results and guiding a narrower Q3 operating loss compared to a year earlier. Oil was also trending lower, with the WTI benchmark recently down 0.19% and Brent Crude down 0.49%.
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(-) GPS (-3.01%) Extended losses from Thursday's after hours session guiding full year earnings below expectations. John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week. Oil was also trending lower, with the WTI benchmark recently down 0.19% and Brent Crude down 0.49%.
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(+) NWY (+14.63%) Extended gains from Thursday's after hours session after reporting better-than-expected Q2 results and guiding a narrower Q3 operating loss compared to a year earlier. John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week. Oil was also trending lower, with the WTI benchmark recently down 0.19% and Brent Crude down 0.49%.
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(+) NWY (+14.63%) Extended gains from Thursday's after hours session after reporting better-than-expected Q2 results and guiding a narrower Q3 operating loss compared to a year earlier. John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week. Oil was also trending lower, with the WTI benchmark recently down 0.19% and Brent Crude down 0.49%.
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ce1821e2-9d84-4270-983b-9d112cc2ad0e
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722603.0
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2016-08-19 00:00:00 UTC
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US Stocks Seen Opening Lower Amid Return Of Big Earnings Reports
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DE
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https://www.nasdaq.com/articles/us-stocks-seen-opening-lower-amid-return-big-earnings-reports-2016-08-19
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nan
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nan
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U.S. equity futures were lower ahead of Friday's regular trading session as investors again took in some major earnings reports. John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week.
Oil was also trending lower, with the WTI benchmark recently down 0.25% and Brent Crude down 0.53%.
There were no major economic data releases set for Friday.
Private prison stocks including Corrections Corp. of America ( CXW ) and GEO Group ( GEO ) rebounded In pre-market trade following big losses Thursday -- up 9.68% and 7.64%, respectively -- after the Federal Bureau of Prisons' made a decision to reduce reliance on private prisons. Canaccord Genuity said in a note to clients that although the decision was, "no doubt negative news," the selloff was overdone.
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.
|
John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week. Canaccord Genuity said in a note to clients that although the decision was, "no doubt negative news," the selloff was overdone. Oil was also trending lower, with the WTI benchmark recently down 0.25% and Brent Crude down 0.53%.
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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. John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week. Oil was also trending lower, with the WTI benchmark recently down 0.25% and Brent Crude down 0.53%.
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John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week. Private prison stocks including Corrections Corp. of America ( CXW ) and GEO Group ( GEO ) rebounded In pre-market trade following big losses Thursday -- up 9.68% and 7.64%, respectively -- after the Federal Bureau of Prisons' made a decision to reduce reliance on private prisons. Oil was also trending lower, with the WTI benchmark recently down 0.25% and Brent Crude down 0.53%.
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Oil was also trending lower, with the WTI benchmark recently down 0.25% and Brent Crude down 0.53%. Private prison stocks including Corrections Corp. of America ( CXW ) and GEO Group ( GEO ) rebounded In pre-market trade following big losses Thursday -- up 9.68% and 7.64%, respectively -- after the Federal Bureau of Prisons' made a decision to reduce reliance on private prisons. John Deere ( DE ), Estee Lauder ( EL ) and Foot Locker ( FL ) reported in the pre-market session after a tapering off of earnings season activity throughout the week.
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722604.0
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2016-08-19 00:00:00 UTC
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Deere & Company (DE) Beats Q3 Earnings, Sales Lag
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DE
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https://www.nasdaq.com/articles/deere-company-de-beats-q3-earnings-sales-lag-2016-08-19
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nan
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Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $24 billion. It also produces a variety of commercial and consumer equipment; and a broad range of construction and forestry equipment. Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. On the contrary, Deere expects to be solidly profitable driven by long-term favorable market trends. Improvement in political conditions in Brazil and a positive Indian agricultural outlook will also drive growth.
Investors have thus been eagerly awaiting the company's latest earnings report. Let's have a quick look at the Illinois-based company's third-quarter fiscal 2016 earnings release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Deere for the third quarter has been revised upward over the past week and month. Coming to the earnings surprise, Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 17.39%.
DEERE & CO Price and EPS Surprise
DEERE & CO Price and EPS Surprise | DEERE & CO Quote
Earnings
Deere posted in earnings of $1.55 per share in the third quarter, beating the Zacks Consensus Estimate of 95 cents. Earnings increased 1.3% year over year.
Revenues
Deere reported third quarter revenues of $5.861 billion, falling short the Zacks Consensus Estimate of $5.996 billion.
Key Stats/Developments to Note
Deere projects total equipment sales to decline 10% year over year in fiscal 2016 and to be down about 8% in the fourth quarter of fiscal 2016 compared with year-ago periods. The projection includes a negative currency-translation effect of about 2% for the full year and a positive translation effect of about 1% for the fourth quarter. For fiscal 2016, net income attributable to Deere & Company is anticipated to be about $1.35 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #3 (Hold) but that could change following Deere's earnings report which was just released.
Market Reaction
Deere shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Deere earnings report later!
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 >>
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 & CO (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.
|
The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. Coming to the earnings surprise, Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 17.39%.
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DEERE & CO Price and EPS Surprise DEERE & CO Price and EPS Surprise | DEERE & CO Quote Earnings Deere posted in earnings of $1.55 per share in the third quarter, beating the Zacks Consensus Estimate of 95 cents. Revenues Deere reported third quarter revenues of $5.861 billion, falling short the Zacks Consensus Estimate of $5.996 billion. Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $24 billion.
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Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations. DEERE & CO Price and EPS Surprise DEERE & CO Price and EPS Surprise | DEERE & CO Quote Earnings Deere posted in earnings of $1.55 per share in the third quarter, beating the Zacks Consensus Estimate of 95 cents. Zacks Rank Currently, Deere has a Zacks Rank #3 (Hold) but that could change following Deere's earnings report which was just released.
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DEERE & CO Price and EPS Surprise DEERE & CO Price and EPS Surprise | DEERE & CO Quote Earnings Deere posted in earnings of $1.55 per share in the third quarter, beating the Zacks Consensus Estimate of 95 cents. Revenues Deere reported third quarter revenues of $5.861 billion, falling short the Zacks Consensus Estimate of $5.996 billion. Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $24 billion.
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722605.0
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2016-08-19 00:00:00 UTC
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What Happened in the Stock Market Today
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https://www.nasdaq.com/articles/what-happened-stock-market-today-2016-08-19
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nan
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nan
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Stocks ended the trading week with minor losses despite a few surprisingly strong quarterly earnings announcements. On Friday, the Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) indexes both fell slightly, leaving them unchanged over a week that was packed with earnings reports and a closely watched reading by the Federal Reserve on the U.S. economy's growth outlook.
Today's stock market:
Source: Yahoo Finance.
Still, a few individual stocks bucked the down trend and made significant moves higher on Friday, including John Deere (NYSE: DE) and Foot Locker (NYSE: FL) .
John Deere gets more profitable
Farm-equipment giant John Deere rose 13% on heavy trading volume after quarterly results trounced profit expectations. The bad news is that the company is still suffering from a brutal cyclical downturn in the agricultural industry.
Sales fell 11% in the latest quarter and are down 9% over the past nine months. "John Deere's performance reflected the continuing impact of the global farm recession as well as difficult conditions in construction equipment markets," CEO Samuel Allen said in a press release.
Image source: Getty Images.
However, the company is finding success at navigating through that tough selling environment. Each of its divisions produced operating profits this quarter, and its agriculture and turf division saw a 21% earnings spike thanks to higher prices, lower production costs, and decreased expenses. Thanks to that pricing and cost discipline, net income only fell 4% despite the double-digit drop in revenue. Allen credited management's success to "our efforts to develop a more durable business model and a wider range of revenue sources."
Deere left its sales forecast in place that calls for a 9% revenue drop. Earnings, meanwhile, got a big upgrade with net income projected to weigh in at $1.35 billion compared to the $1.2 billion management targeted in late May. Higher prices and lower costs are combining to make Deere significantly more profitable, and investors celebrated that change by biding shares higher on Friday.
Foot Locker speeds up the growth pace
Foot Locker's 11% jump pushed the stock into positive territory on the year, following strong second-quarter results. Sales growth accelerated to a 5% pace from 3% in the prior quarter thanks to solid demand across its basketball, running, and classic footwear categories. Executives also managed encouraging wins in the e-commerce and international sales channels.
Gross profit margin ticked higher, indicating that Foot Locker did a good job of selecting, stocking, and pricing inventory this quarter. Detracting from that gain was the fact that operating expenses rose slightly, thanks to continued investments in stores and the online selling infrastructure.
Image source: Getty Images.
Overall, the retailer produced a solid 7% boost in net income. And due to stock buybacks -- management spent $350 million on dividends and stock repurchases over the last six months -- that translated into a 12% spike in per-share earnings. Foot Locker's $0.94 per share of profit beat consensus estimates calling for $0.90 per share.
Trends change quickly in apparel and athletic footwear categories, but CEO Richard Johnson and his team believe they can effectively respond to those shifts while delivering mid-single-digit sales growth and double-digit profit gains for the full year. With this week's results, investors gained confidence in that aggressive forecast.
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Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool is short John Deere. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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On Friday, the Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) indexes both fell slightly, leaving them unchanged over a week that was packed with earnings reports and a closely watched reading by the Federal Reserve on the U.S. economy's growth outlook. "John Deere's performance reflected the continuing impact of the global farm recession as well as difficult conditions in construction equipment markets," CEO Samuel Allen said in a press release. Trends change quickly in apparel and athletic footwear categories, but CEO Richard Johnson and his team believe they can effectively respond to those shifts while delivering mid-single-digit sales growth and double-digit profit gains for the full year.
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Still, a few individual stocks bucked the down trend and made significant moves higher on Friday, including John Deere (NYSE: DE) and Foot Locker (NYSE: FL) . Each of its divisions produced operating profits this quarter, and its agriculture and turf division saw a 21% earnings spike thanks to higher prices, lower production costs, and decreased expenses. Higher prices and lower costs are combining to make Deere significantly more profitable, and investors celebrated that change by biding shares higher on Friday.
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Still, a few individual stocks bucked the down trend and made significant moves higher on Friday, including John Deere (NYSE: DE) and Foot Locker (NYSE: FL) . John Deere gets more profitable Farm-equipment giant John Deere rose 13% on heavy trading volume after quarterly results trounced profit expectations. Higher prices and lower costs are combining to make Deere significantly more profitable, and investors celebrated that change by biding shares higher on Friday.
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John Deere gets more profitable Farm-equipment giant John Deere rose 13% on heavy trading volume after quarterly results trounced profit expectations. Thanks to that pricing and cost discipline, net income only fell 4% despite the double-digit drop in revenue. Higher prices and lower costs are combining to make Deere significantly more profitable, and investors celebrated that change by biding shares higher on Friday.
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2016-08-19 00:00:00 UTC
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Why is Deere & Co (DE) Stock Gaining 13% Today?
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https://www.nasdaq.com/articles/why-deere-co-de-stock-gaining-13-today-2016-08-19
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On Friday, shares of agricultural equipment maker Deere & Company DE are gaining big, up around 13% in late-afternoon trading after the company raised its fiscal 2016 guidance after reporting strong third quarter results .
While profit and sales declined in the third quarter, Deere posted a surprise increase in per-share profit. EPS came in at $1.55 per share, soaring past the Zacks Consensus Estimate of 95 cents. Net sales for the period were $5.86 billion, lagging behind our estimate and falling almost 23% year-over-year.
Looking ahead, Deere now expects net income to be about $1.35 billion for the full fiscal year, up from the prior range of $1.2 billion to $1.3 billion. It also projects total equipment sales to decline 10% year-over-year. Deere is projecting sales growth of turf and utility equipment in the U.S. and Canada to range between plateauing out with a tendency to rise 5%, gaining from new products and general economic growth.
Deere has been struggling lately, mostly due to the current weak state in the global farm and construction industry. In order to combat this, the company began slowing down production to avoid a surplus of tractors and other agricultural equipment.
Over the last 12 months, DE has fallen over 18%. It sits at a #3 (Hold) on the Zacks Rank.
DEERE & CO Price, Consensus and EPS Surprise
DEERE & CO Price, Consensus and EPS Surprise | DEERE & CO Quote
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week's financial and investment news.
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DEERE & CO (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere has been struggling lately, mostly due to the current weak state in the global farm and construction industry. In order to combat this, the company began slowing down production to avoid a surplus of tractors and other agricultural equipment. On Friday, shares of agricultural equipment maker Deere & Company DE are gaining big, up around 13% in late-afternoon trading after the company raised its fiscal 2016 guidance after reporting strong third quarter results .
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On Friday, shares of agricultural equipment maker Deere & Company DE are gaining big, up around 13% in late-afternoon trading after the company raised its fiscal 2016 guidance after reporting strong third quarter results . DEERE & CO Price, Consensus and EPS Surprise DEERE & CO Price, Consensus and EPS Surprise | DEERE & CO Quote Interested in the other top stories of the week? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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On Friday, shares of agricultural equipment maker Deere & Company DE are gaining big, up around 13% in late-afternoon trading after the company raised its fiscal 2016 guidance after reporting strong third quarter results . DEERE & CO Price, Consensus and EPS Surprise DEERE & CO Price, Consensus and EPS Surprise | DEERE & CO Quote Interested in the other top stories of the week? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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It also projects total equipment sales to decline 10% year-over-year. On Friday, shares of agricultural equipment maker Deere & Company DE are gaining big, up around 13% in late-afternoon trading after the company raised its fiscal 2016 guidance after reporting strong third quarter results . While profit and sales declined in the third quarter, Deere posted a surprise increase in per-share profit.
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2016-08-19 00:00:00 UTC
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Mid-Afternoon Market Update: DeVry Education Rises Following Q1 Results; Pure Storage Shares Tumble
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https://www.nasdaq.com/articles/mid-afternoon-market-update-devry-education-rises-following-q1-results-pure-storage-shares
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Toward the end of trading Friday, the Dow traded down 0.22 percent to 18,557.12 while the NASDAQ declined 0.06 percent to 5,237.15. The S&P also fell, dropping 0.16 percent to 2,183.50.
Leading and Lagging Sectors
Friday afternoon, the industrial shares gained by 0.09 percent. Meanwhile, top gainers in the sector included The GEO Group Inc (NYSE: GEO ), and DeVry Education Group Inc (NYSE: DV ).
In trading on Friday, utilities shares tumbled by 1.21 percent. Meanwhile, top losers in the sector included Korea Electric Power Corporation (ADR) (NYSE: KEP ), down 3 percent, and Unitil Corporation (NYSE: UTL ), down 3 percent.
Top Headline
Deere & Company (NYSE: DE ) reported better-than-expected earnings for the third quarter and also boosted revenue forecast for the full year.
The company reported net earnings of $488.8 million, down from $511.6 million while EPS grew modestly from $1.53 to $1.55 due to lower share count. This was sharply higher than the Street estimates of $0.94 a share.
Similarly, Deere reported worldwide net sales of $6.724 billion representing a drop of 11 percent on year-over-year basis. Going forward, the company expects equipment sales to fall about 10 percent for fiscal 2016 and about 8 percent for the fourth quarter. For fiscal 2016, Deere now expects net income to be about $1.350 billion.
Equities Trading UP
DeVry Education Group Inc (NYSE: DV ) shares shot up 14 percent to $24.90. Devry Education reported better-than-expected earnings for its fourth quarter. New Students decreased 22.9 percent year-over-year to 8,269 compared with 10,726 previously. Total Students in postsecondary enrollments decreased 8.8 percent year-over-year to 69, 872 compared with 76,584 previously.
Shares of New York & Company, Inc. (NYSE: NWY ) got a boost, shooting up 13 percent to $2.31 as the company posted upbeat quarterly results.
The GEO Group Inc (NYSE: GEO ) shares were also up, gaining 19 percent to $23.27. Following Thursday's Department of Justice news regarding privately-managed prisons, GEO Group dropped on Thursday, but rebounded Friday after issuing a response to the DoJ.
Equities Trading DOWN
Pure Storage Inc (NYSE: PSTG ) shares dropped 14 percent to $11.58. OTR Global downgraded Pure Storage from Positive to Negative.
Shares of China Finance Online Co. (ADR) (NASDAQ: JRJC ) were down 16 percent to $4.35. China Finance Online reported Q2 earnings of $0.50 per share on revenue of $11 million.
Olympic Steel, Inc. (NASDAQ: ZEUS ) was down, falling around 17 percent to $21.32. KeyBanc downgraded Olympic Steel from Sector Weight to Underweight.
Commodities
In commodity news, oil traded up 0.18 percent to $48.98 while gold traded down 0.67 percent to $1,348.10.
Silver traded down 1.98 percent Friday to $19.35, while copper rose 0.14 percent to $2.18.
Eurozone
European shares closed lower today. The eurozone's STOXX 600 fell 0.81 percent, the Spanish Ibex Index dropped 1.16 percent, while Italy's FTSE MIB Index declined 2.18 percent. Meanwhile the German DAX declined 0.55 percent, and the French CAC 40 fell 0.82 percent, while U.K. shares fell 0.15 percent.
Economics
There were no major US economic releases Friday.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top Headline Deere & Company (NYSE: DE ) reported better-than-expected earnings for the third quarter and also boosted revenue forecast for the full year. Similarly, Deere reported worldwide net sales of $6.724 billion representing a drop of 11 percent on year-over-year basis. Equities Trading UP DeVry Education Group Inc (NYSE: DV ) shares shot up 14 percent to $24.90.
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Meanwhile, top gainers in the sector included The GEO Group Inc (NYSE: GEO ), and DeVry Education Group Inc (NYSE: DV ). Top Headline Deere & Company (NYSE: DE ) reported better-than-expected earnings for the third quarter and also boosted revenue forecast for the full year. Equities Trading UP DeVry Education Group Inc (NYSE: DV ) shares shot up 14 percent to $24.90.
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Toward the end of trading Friday, the Dow traded down 0.22 percent to 18,557.12 while the NASDAQ declined 0.06 percent to 5,237.15. The eurozone's STOXX 600 fell 0.81 percent, the Spanish Ibex Index dropped 1.16 percent, while Italy's FTSE MIB Index declined 2.18 percent. Meanwhile the German DAX declined 0.55 percent, and the French CAC 40 fell 0.82 percent, while U.K. shares fell 0.15 percent.
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Toward the end of trading Friday, the Dow traded down 0.22 percent to 18,557.12 while the NASDAQ declined 0.06 percent to 5,237.15. Similarly, Deere reported worldwide net sales of $6.724 billion representing a drop of 11 percent on year-over-year basis. Meanwhile, top gainers in the sector included The GEO Group Inc (NYSE: GEO ), and DeVry Education Group Inc (NYSE: DV ).
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2016-08-19 00:00:00 UTC
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Deere & Co (DE) Stock Soars on Raised Outlook
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https://www.nasdaq.com/articles/deere-co-de-stock-soars-raised-outlook-2016-08-19
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Co (NYSE: DE ) raised its guidance for its fiscal 2016 after releasing fiscal third-quarter results that beat expectations.
For its most recent period, the agricultural equipment manufacturer reported earnings of $1.55 per share, topping the consensus estimate of 94 cents. The figure also marked a year-over-year increase of 1.3%.
The company's net sales for the quarter amounted to $6.72 billion, handily beating Wall Street's average projection of $6.09 billion by $630 million.
Deere's full-year earnings are now slated to come in at $1.35 billion per share, ahead of its previous estimate of $1.2 billion. Higher prices for its products helped the company exceed expectations.
The global farm and construction industry is currently weak, but Deere bucked the trend by slowing down production to avoid an oversupply of tractors and other agricultural equipment. Sales of its farm equipment fell 11% year-over-year to $4.7 billion.
The company issued a quarterly dividend that was paid on Monday, August 1st. Investors on record with Deere as of Thursday, June 30th netted a 60-cent dividend, marking a yield of 3.12%.
Back in late April, Warren Buffett named Deere as one of its top dividend stocks and increased his stake on the construction equipment provider. The company was suffering from lower crop prices and diminished demand for the company's products, which is the best time to invest on high quality dividend stocks.
DE shares popped 11.8% Friday. The stock has had its ups and downs throughout the year, but it is ultimately up 12.4% YTD.
More From InvestorPlace:
7 Stocks the Smart Money Loves … Or Hates
10 Big-Name Stocks With Must-See Charts
The 10 Best Small- and Mid-Cap Stocks to Buy Now
The post Deere & Co (DE) Stock Soars on Raised Outlook appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The global farm and construction industry is currently weak, but Deere bucked the trend by slowing down production to avoid an oversupply of tractors and other agricultural equipment. Back in late April, Warren Buffett named Deere as one of its top dividend stocks and increased his stake on the construction equipment provider. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Co (NYSE: DE ) raised its guidance for its fiscal 2016 after releasing fiscal third-quarter results that beat expectations.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Co (NYSE: DE ) raised its guidance for its fiscal 2016 after releasing fiscal third-quarter results that beat expectations. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere's full-year earnings are now slated to come in at $1.35 billion per share, ahead of its previous estimate of $1.2 billion.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Co (NYSE: DE ) raised its guidance for its fiscal 2016 after releasing fiscal third-quarter results that beat expectations. The company was suffering from lower crop prices and diminished demand for the company's products, which is the best time to invest on high quality dividend stocks. More From InvestorPlace: 7 Stocks the Smart Money Loves … Or Hates 10 Big-Name Stocks With Must-See Charts The 10 Best Small- and Mid-Cap Stocks to Buy Now The post Deere & Co (DE) Stock Soars on Raised Outlook appeared first on InvestorPlace .
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Deere's full-year earnings are now slated to come in at $1.35 billion per share, ahead of its previous estimate of $1.2 billion. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Co (NYSE: DE ) raised its guidance for its fiscal 2016 after releasing fiscal third-quarter results that beat expectations. The global farm and construction industry is currently weak, but Deere bucked the trend by slowing down production to avoid an oversupply of tractors and other agricultural equipment.
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2016-08-19 00:00:00 UTC
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Noteworthy Friday Option Activity: DE, CMG, GOOGL
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-de-cmg-googl-2016-08-19
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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 118,610 contracts has been traded thus far today, a contract volume which is representative of approximately 11.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 366.4% of DE's average daily trading volume over the past month, of 3.2 million shares. Particularly high volume was seen for the $80 strike put option expiring September 16, 2016 , with 6,016 contracts trading so far today, representing approximately 601,600 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $80 strike highlighted in orange:
Chipotle Mexican Grill Inc (Symbol: CMG) options are showing a volume of 24,693 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 241.7% of CMG's average daily trading volume over the past month, of 1.0 million shares. Particularly high volume was seen for the $320 strike put option expiring December 16, 2016 , with 2,508 contracts trading so far today, representing approximately 250,800 underlying shares of CMG. Below is a chart showing CMG's trailing twelve month trading history, with the $320 strike highlighted in orange:
And Alphabet Inc (Symbol: GOOGL) saw options trading volume of 22,586 contracts, representing approximately 2.3 million underlying shares or approximately 137.3% of GOOGL's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $800 strike call option expiring August 19, 2016 , with 2,947 contracts trading so far today, representing approximately 294,700 underlying shares of GOOGL. Below is a chart showing GOOGL's trailing twelve month trading history, with the $800 strike highlighted in orange:
For the various different available expirations for DE options , CMG options , or GOOGL 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 $80 strike put option expiring September 16, 2016 , with 6,016 contracts trading so far today, representing approximately 601,600 underlying shares of DE. Particularly high volume was seen for the $320 strike put option expiring December 16, 2016 , with 2,508 contracts trading so far today, representing approximately 250,800 underlying shares of CMG. Particularly high volume was seen for the $800 strike call option expiring August 19, 2016 , with 2,947 contracts trading so far today, representing approximately 294,700 underlying shares of GOOGL.
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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 118,610 contracts has been traded thus far today, a contract volume which is representative of approximately 11.9 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 $80 strike highlighted in orange: Chipotle Mexican Grill Inc (Symbol: CMG) options are showing a volume of 24,693 contracts thus far today. Below is a chart showing CMG's trailing twelve month trading history, with the $320 strike highlighted in orange: And Alphabet Inc (Symbol: GOOGL) saw options trading volume of 22,586 contracts, representing approximately 2.3 million underlying shares or approximately 137.3% of GOOGL's average daily trading volume over the past month, of 1.6 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 118,610 contracts has been traded thus far today, a contract volume which is representative of approximately 11.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 241.7% of CMG's average daily trading volume over the past month, of 1.0 million shares. Below is a chart showing CMG's trailing twelve month trading history, with the $320 strike highlighted in orange: And Alphabet Inc (Symbol: GOOGL) saw options trading volume of 22,586 contracts, representing approximately 2.3 million underlying shares or approximately 137.3% of GOOGL's average daily trading volume over the past month, of 1.6 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 118,610 contracts has been traded thus far today, a contract volume which is representative of approximately 11.9 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing CMG's trailing twelve month trading history, with the $320 strike highlighted in orange: And Alphabet Inc (Symbol: GOOGL) saw options trading volume of 22,586 contracts, representing approximately 2.3 million underlying shares or approximately 137.3% of GOOGL's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $800 strike call option expiring August 19, 2016 , with 2,947 contracts trading so far today, representing approximately 294,700 underlying shares of GOOGL.
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2016-08-18 00:00:00 UTC
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Pre-Market Earnings Report for August 19, 2016 : DE, EL, FL, HIBB, SMRT, TUES, GMAN
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https://www.nasdaq.com/articles/pre-market-earnings-report-august-19-2016-de-el-fl-hibb-smrt-tues-gman-2016-08-18
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The following companies are expected to report earnings prior to market open on 08/19/2016. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending July 31, 2016. The farm machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.95. This value represents a 37.91% decrease 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 6.85%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for DE is 19.96 vs. an industry ratio of 15.60, 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, 2016. The cosmetic & toiletries company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.40. 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 21.67%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for EL is 29.44 vs. an industry ratio of 21.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Foot Locker, Inc. ( FL ) is reporting for the quarter ending July 31, 2016. The retail (shoe) company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.91. This value represents a 8.33% increase compared to the same quarter last year. FL missed the consensus earnings per share in the 2nd calendar quarter of 2016 by -0.71%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for FL is 12.82 vs. an industry ratio of 10.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Hibbett Sports, Inc. ( HIBB ) is reporting for the quarter ending July 31, 2016. The retail company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.28. This value represents a no change for the same quarter last year. In the past year HIBB has met analyst expectations once and beat the expectations the other three quarters. The "days to cover" for this stock exceeds 20 days. Zacks Investment Research reports that the 2017 Price to Earnings ratio for HIBB is 12.49 vs. an industry ratio of 7.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Stein Mart, Inc. ( SMRT ) is reporting for the quarter ending July 31, 2016. The retail (shoe) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.07. This value represents a 30.00% decrease compared to the same quarter last year. SMRT missed the consensus earnings per share in the 1st calendar quarter of 2016 by -15%. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2017 Price to Earnings ratio for SMRT is 15.22 vs. an industry ratio of 10.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Tuesday Morning Corp. ( TUES ) is reporting for the quarter ending June 30, 2016. The discount retail company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.12. This value represents a 20.00% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 29 days. Zacks Investment Research reports that the 2016 Price to Earnings ratio for TUES is 150.20 vs. an industry ratio of 74.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Gordmans Stores, Inc. ( GMAN ) is reporting for the quarter ending July 31, 2016. The discount retail company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.27. This value represents a 200.00% decrease compared to the same quarter last year. GMAN missed the consensus earnings per share in the 4th calendar quarter of 2015 by -7.69%. The "days to cover" for this stock exceeds 87 days. Zacks Investment Research reports that the 2017 Price to Earnings ratio for GMAN is -2.49 vs. an industry ratio of 74.90.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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, 2016. This value represents a 37.91% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2016 Price to Earnings ratio for DE is 19.96 vs. an industry ratio of 15.60, 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, 2016. This value represents a 37.91% decrease compared to the same quarter last year.
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Zacks Investment Research reports that the 2016 Price to Earnings ratio for DE is 19.96 vs. an industry ratio of 15.60, 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, 2016. This value represents a 37.91% decrease compared to the same quarter last year.
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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, 2016. This value represents a 37.91% decrease compared to the same quarter last year.
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2016-08-17 00:00:00 UTC
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Deere (DE) Stock Earnings Preview: What Investors Need to Know
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https://www.nasdaq.com/articles/deere-de-stock-earnings-preview-what-investors-need-know-2016-08-17
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Today's video takes a closer look at Deere (DE), a company in the somewhat troubled agricultural equipment market. The sector has taken a beating thanks to uncertainty over commodity demand and prices, and the outlook for a turnaround isn't too promising either. No wonder the industry is ranked in the bottom 25% overall heading into Deere's report.
There is a silver lining for DE though, as the company has been a star in earnings season including an average positive surprise of over 17% in the last four quarters. And for the longer term, the company hasn't misses estimates since late 2012 making for an impressive run. However, this hasn't done much for the company in terms of performance, as shares are basically unchanged over the past four years.
DEERE & CO Price and EPS Surprise
DEERE & CO Price and EPS Surprise | DEERE & CO Quote
The outlook isn't great either, at least if we look to recent earnings estimates. As we can see in the chart below, estimates have largely tracked DE's negative trends, with consensus estimates plunging for both the current year and next year. Worst of all, the 2017 consensus is actually below the 2016 one, suggesting sluggish growth prospects to say the least.
DEERE & CO Price and Consensus
DEERE & CO Price and Consensus | DEERE & CO Quote
That is probably why DE has a rank of just 3 (hold) and why the company has a 'C' for its fundamental score. The only positive for investors is that recent estimates have been a tad higher, giving this stock a positive earnings ESP and suggesting that it has at least a decent chance to post another beat, if nothing else.
Bottom Line
It is hard to bet against DE when it comes to beating earnings estimates, given the company's impressive track record. But with sluggish growth prospects and a poor industry outlook, it is hard to get excited by DE ahead of their report either. All investors can hope for is that estimates have just fallen too far, anything else seems unlikely to take place for DE this coming report.
For a more in-depth analysis of DE, make sure to watch our short video on the topic. And for additional insights on the agricultural market, listen to the podcast below:
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 & CO (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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Today's video takes a closer look at Deere (DE), a company in the somewhat troubled agricultural equipment market. There is a silver lining for DE though, as the company has been a star in earnings season including an average positive surprise of over 17% in the last four quarters. Bottom Line It is hard to bet against DE when it comes to beating earnings estimates, given the company's impressive track record.
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DEERE & CO Price and EPS Surprise DEERE & CO Price and EPS Surprise | DEERE & CO Quote The outlook isn't great either, at least if we look to recent earnings estimates. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Today's video takes a closer look at Deere (DE), a company in the somewhat troubled agricultural equipment market.
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DEERE & CO Price and EPS Surprise DEERE & CO Price and EPS Surprise | DEERE & CO Quote The outlook isn't great either, at least if we look to recent earnings estimates. DEERE & CO Price and Consensus DEERE & CO Price and Consensus | DEERE & CO Quote That is probably why DE has a rank of just 3 (hold) and why the company has a 'C' for its fundamental score. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's video takes a closer look at Deere (DE), a company in the somewhat troubled agricultural equipment market. No wonder the industry is ranked in the bottom 25% overall heading into Deere's report. Bottom Line It is hard to bet against DE when it comes to beating earnings estimates, given the company's impressive track record.
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46673965-b900-4883-afd3-488c4f8ad350
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722612.0
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2016-08-17 00:00:00 UTC
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Zacks Market Edge Highlights: Corn ETF, Deere, AGCO, Titan Machinery and Archer-Daniels-Midland
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DE
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https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-corn-etf-deere-agco-titan-machinery-and-archer-daniels
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nan
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For Immediate Release
Chicago, IL - August 17, 2016 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/228243/stocks-to-play-the-agriculture-crash )
Stocks to Play the Agriculture Crash
Welcome to Episode #45 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Jeremy Mullin, editor of Zacks Counterstrike portfolio service.
He's been interested in the agriculture commodities for several months. Tracey has always been a fan of the agriculture stocks.
It hasn't been getting much play in the national press, but the farmers are in a tough spot in 2016.
In 2011 and 2012, agriculture was booming. The headlines were saying things like "you can become a millionaire farmer" or "Want to make more than a Banker? Become a Farmer."
Farm land prices soared to new record highs as corn, wheat and soybean prices rose to new highs. It seemed like it was a new paradigm for the agriculture industry.
But those boom times have come to an end as agriculture commodity prices have hit multi-year lows. As the farmers struggle for income, they aren't buying combines, planters or tractors either.
The downturn has trickled down into the farming equipment companies, who have been laying off workers at their manufacturing plants. In turn, that is putting pressure on the heartland towns and communities that still depend on the farming industry.
Who are the agriculture winners and losers in this down cycle?
1. Traders can make bets on the direction of the underlying commodities by trading in the Corn ETF ( CORN ) and Wheat ETF (WEAT).
2. Jeremy and Tracey give their opinions on the farming equipment companies like Deere ( DE ), AGCO ( AGCO ) and Titan Machinery ( TITN ). Are any of them deals?
3. Could there be winners with corn prices at $3? Jeremy and Tracey dig into Archer-Daniels-Midland ( ADM ) and Ingredion (INGR).
What else should you know about the downturn in the agriculture sector before investing in the sector?
Tune into this week's podcast to find out.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
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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
TEUCRM-CORN FD (CORN): ETF Research Reports
DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
TITAN MACHINERY (TITN): Free Stock Analysis Report
ARCHER DANIELS (ADM): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This 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. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/228243/stocks-to-play-the-agriculture-crash ) Stocks to Play the Agriculture Crash Welcome to Episode #45 of the Zacks Market Edge Podcast. In this episode, Tracey is joined by Jeremy Mullin, editor of Zacks Counterstrike portfolio service.
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Jeremy and Tracey give their opinions on the farming equipment companies like Deere ( DE ), AGCO ( AGCO ) and Titan Machinery ( TITN ). Click to get this free report TEUCRM-CORN FD (CORN): ETF Research Reports DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report TITAN MACHINERY (TITN): Free Stock Analysis Report ARCHER DANIELS (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/228243/stocks-to-play-the-agriculture-crash ) Stocks to Play the Agriculture Crash Welcome to Episode #45 of the Zacks Market Edge Podcast.
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Click to get this free report TEUCRM-CORN FD (CORN): ETF Research Reports DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report TITAN MACHINERY (TITN): Free Stock Analysis Report ARCHER DANIELS (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/228243/stocks-to-play-the-agriculture-crash ) Stocks to Play the Agriculture Crash Welcome to Episode #45 of the Zacks Market Edge Podcast. In this episode, Tracey is joined by Jeremy Mullin, editor of Zacks Counterstrike portfolio service.
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In this episode, Tracey is joined by Jeremy Mullin, editor of Zacks Counterstrike portfolio service. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/228243/stocks-to-play-the-agriculture-crash ) Stocks to Play the Agriculture Crash Welcome to Episode #45 of the Zacks Market Edge Podcast. In turn, that is putting pressure on the heartland towns and communities that still depend on the farming industry.
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1d56165c-3aec-4e3f-8984-f881a9cb6c1a
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722613.0
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2016-08-17 00:00:00 UTC
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Deere's (DE) Q3 Earnings: What's in Store for the Stock?
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DE
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https://www.nasdaq.com/articles/deeres-de-q3-earnings%3A-whats-in-store-for-the-stock-2016-08-17
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nan
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Deere & CompanyDE is slated to announce third-quarter fiscal 2016 results on Aug 19, before the market opens. Last quarter, Deere's earnings and sales both declined year over year, owing to downturn in the global farm economy and weakness in the construction equipment sector.
Let's see how things are shaping up for this announcement.
Factors to Impact Q3 Results
Deere projected its sales in the third quarter of fiscal 2016 to deteriorate about 12% from the year-ago quarter. The projection includes a negative currency-translation effect of 1%. Low commodity prices and stagnant farm income coupled with soft conditions in the North American energy sector remain near term headwinds to Deere's results.
Further, Deere's results will continue to be affected by unfavorable foreign currency movements and sluggish economic growth. However, on a positive note, easing of political conditions in Brazil and a positive Indian agricultural outlook will drive growth.
Earnings Whispers
Our proven model does not conclusively show that Deere will 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 #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 95 cents.
Zacks Rank: Deere's Zacks Rank #3 increases the predictive power of ESP, but a negative ESP leaves our surprise prediction inconclusive.
Surprise History
Deere has outpaced the Zacks consensus estimate in each of the trailing four quarters, with an average earnings beat of 17.39%.
DEERE & CO Price and EPS Surprise
DEERE & CO Price and EPS Surprise | DEERE & CO Quote
Stocks That Warrant a Look
Here are some stocks worth considering, as according to our model they have the right combination of elements to post an earnings beat this quarter.
Ascendis Pharma A/S ASND has an Earnings ESP of +7.46% and a Zacks Rank #2.
Alcobra Ltd. ADHD has an Earnings ESP of +18.18% and a Zacks Rank #3.
Best Buy Co., Inc. BBY has an Earnings ESP of +4.76% and a Zacks Rank #3.
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 >>
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 & CO (DE): Free Stock Analysis Report
BEST BUY (BBY): Free Stock Analysis Report
ASCENDIS PHARMA (ASND): Free Stock Analysis Report
ALCOBRA LTD (ADHD): 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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Low commodity prices and stagnant farm income coupled with soft conditions in the North American energy sector remain near term headwinds to Deere's results. Further, Deere's results will continue to be affected by unfavorable foreign currency movements and sluggish economic growth. Surprise History Deere has outpaced the Zacks consensus estimate in each of the trailing four quarters, with an average earnings beat of 17.39%.
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Zacks Rank: Deere's Zacks Rank #3 increases the predictive power of ESP, but a negative ESP leaves our surprise prediction inconclusive. DEERE & CO Price and EPS Surprise DEERE & CO Price and EPS Surprise | DEERE & CO Quote Stocks That Warrant a Look Here are some stocks worth considering, as according to our model they have the right combination of elements to post an earnings beat this quarter. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BEST BUY (BBY): Free Stock Analysis Report ASCENDIS PHARMA (ASND): Free Stock Analysis Report ALCOBRA LTD (ADHD): Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank: Deere's Zacks Rank #3 increases the predictive power of ESP, but a negative ESP leaves our surprise prediction inconclusive. DEERE & CO Price and EPS Surprise DEERE & CO Price and EPS Surprise | DEERE & CO Quote Stocks That Warrant a Look Here are some stocks worth considering, as according to our model they have the right combination of elements to post an earnings beat this quarter. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BEST BUY (BBY): Free Stock Analysis Report ASCENDIS PHARMA (ASND): Free Stock Analysis Report ALCOBRA LTD (ADHD): Free Stock Analysis Report To read this article on Zacks.com click here.
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Factors to Impact Q3 Results Deere projected its sales in the third quarter of fiscal 2016 to deteriorate about 12% from the year-ago quarter. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BEST BUY (BBY): Free Stock Analysis Report ASCENDIS PHARMA (ASND): Free Stock Analysis Report ALCOBRA LTD (ADHD): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is slated to announce third-quarter fiscal 2016 results on Aug 19, before the market opens.
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07084ece-3050-454a-8083-18f861ead111
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722614.0
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2016-08-16 00:00:00 UTC
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Stocks to Play the Agriculture Crash
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DE
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https://www.nasdaq.com/articles/stocks-play-agriculture-crash-2016-08-16
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nan
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nan
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Welcome to Episode #45 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Jeremy Mullin, editor of Zacks Counterstrike portfolio service.
He's been interested in the agriculture commodities for several months. Tracey has always been a fan of the agriculture stocks.
It hasn't been getting much play in the national press, but the farmers are in a tough spot in 2016.
In 2011 and 2012, agriculture was booming. The headlines were saying things like "you can become a millionaire farmer" or "Want to make more than a Banker? Become a Farmer."
Farm land prices soared to new record highs as corn, wheat and soybean prices rose to new highs. It seemed like it was a new paradigm for the agriculture industry.
But those boom times have come to an end as agriculture commodity prices have hit multi-year lows. As the farmers struggle for income, they aren't buying combines, planters or tractors either.
The downturn has trickled down into the farming equipment companies, who have been laying off workers at their manufacturing plants. In turn, that is putting pressure on the heartland towns and communities that still depend on the farming industry.
Who are the agriculture winners and losers in this down cycle?
1. Traders can make bets on the direction of the underlying commodities by trading in the Corn ETF (CORN) and Wheat ETF (WEAT).
2. Jeremy and Tracey give their opinions on the farming equipment companies like Deere (DE), AGCO (AGCO) and Titan Machinery (TITN). Are any of them deals?
3. Could there be winners with corn prices at $3? Jeremy and Tracey dig into Archer-Daniels-Midland (ADM) and Ingredion (INGR).
What else should you know about the downturn in the agriculture sector before investing in the sector?
Tune into this week's podcast to find out.
And if you'd like to know how to play other commodities, Jeremy and Tracey delved into gold recently.
Should you invest in the yellow metal? Watch Below:
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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 MACHINERY (TITN): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
ARCHER DANIELS (ADM): Free Stock Analysis Report
TEUCRM-CORN FD (CORN): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this episode, Tracey is joined by Jeremy Mullin, editor of Zacks Counterstrike portfolio service. Welcome to Episode #45 of the Zacks Market Edge Podcast. In turn, that is putting pressure on the heartland towns and communities that still depend on the farming industry.
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Jeremy and Tracey give their opinions on the farming equipment companies like Deere (DE), AGCO (AGCO) and Titan Machinery (TITN). Click to get this free report TITAN MACHINERY (TITN): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report ARCHER DANIELS (ADM): Free Stock Analysis Report TEUCRM-CORN FD (CORN): ETF Research Reports To read this article on Zacks.com click here. Welcome to Episode #45 of the Zacks Market Edge Podcast.
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Click to get this free report TITAN MACHINERY (TITN): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report ARCHER DANIELS (ADM): Free Stock Analysis Report TEUCRM-CORN FD (CORN): ETF Research Reports To read this article on Zacks.com click here. Welcome to Episode #45 of the Zacks Market Edge Podcast. In this episode, Tracey is joined by Jeremy Mullin, editor of Zacks Counterstrike portfolio service.
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Jeremy and Tracey give their opinions on the farming equipment companies like Deere (DE), AGCO (AGCO) and Titan Machinery (TITN). Welcome to Episode #45 of the Zacks Market Edge Podcast. In this episode, Tracey is joined by Jeremy Mullin, editor of Zacks Counterstrike portfolio service.
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eace870b-04a9-474a-a667-020faed1fa58
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722615.0
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2016-08-15 00:00:00 UTC
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NetApp (NTAP) Q1 Earnings: What's in the Cards This Time?
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DE
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https://www.nasdaq.com/articles/netapp-ntap-q1-earnings%3A-whats-in-the-cards-this-time-2016-08-15
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nan
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NetApp Inc. NTAP is set to report first-quarter fiscal 2017 results on Aug 17. Last quarter, the company reported a negative earnings surprise of 10%. Let's see how things are shaping up for this announcement.
Factors to Consider
NetApp posted dismal results for the fiscal fourth quarter wherein its top and bottom line results compared unfavorably with the year-ago quarter figures.
Nonetheless, the company is expected to gain momentum in flash-based solutions with the newly introduced all-flash array, which will help it to gain traction in the storage market. The recent product launches and refreshes will drive revenues while stringent cost controls will facilitate margin expansion in the to-be-reported quarter.
However, the recent forecast for worldwide IT spending by Gartner raises concerns about NetApp's near-term performance. Competition from EMC Corp. EMC and HP Inc. add to its woes.
NETAPP INC Price and EPS Surprise
NETAPP INC Price and EPS Surprise | NETAPP INC Quote
Earnings Whispers
Our proven model does not conclusively show that NetApp will beat earnings 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 3 (Hold) for this to happen. However, that is not the case here, as you will see below.
Zacks ESP: The, Earnings ESP which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, currently stands at 0.00%. This is because the Most Accurate estimate of 18 cents is in line with the Zacks Consensus Estimate.
Zacks Rank: NetApp has a Zacks Rank #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are a couple of stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
The J. M. Smucker Company SJM , with an Earnings ESP of +2.87% and a Zacks Rank #3
Deere & Company DE , with an Earnings ESP of +5.26% and a Zacks Rank #3
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 >>
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
EMC CORP -MASS (EMC): Free Stock Analysis Report
NETAPP INC (NTAP): Free Stock Analysis Report
SMUCKER JM (SJM): Free Stock Analysis Report
DEERE & CO (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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However, the recent forecast for worldwide IT spending by Gartner raises concerns about NetApp's near-term performance. Factors to Consider NetApp posted dismal results for the fiscal fourth quarter wherein its top and bottom line results compared unfavorably with the year-ago quarter figures. NETAPP INC Price and EPS Surprise NETAPP INC Price and EPS Surprise | NETAPP INC Quote Earnings Whispers Our proven model does not conclusively show that NetApp will beat earnings this quarter.
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NETAPP INC Price and EPS Surprise NETAPP INC Price and EPS Surprise | NETAPP INC Quote Earnings Whispers Our proven model does not conclusively show that NetApp will beat earnings this quarter. Stocks to Consider Here are a couple of stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: The J. M. Smucker Company SJM , with an Earnings ESP of +2.87% and a Zacks Rank #3 Deere & Company DE , with an Earnings ESP of +5.26% and a Zacks Rank #3 Want the latest recommendations from Zacks Investment Research? Click to get this free report EMC CORP -MASS (EMC): Free Stock Analysis Report NETAPP INC (NTAP): Free Stock Analysis Report SMUCKER JM (SJM): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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NETAPP INC Price and EPS Surprise NETAPP INC Price and EPS Surprise | NETAPP INC Quote Earnings Whispers Our proven model does not conclusively show that NetApp will beat earnings this quarter. Stocks to Consider Here are a couple of stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: The J. M. Smucker Company SJM , with an Earnings ESP of +2.87% and a Zacks Rank #3 Deere & Company DE , with an Earnings ESP of +5.26% and a Zacks Rank #3 Want the latest recommendations from Zacks Investment Research? Click to get this free report EMC CORP -MASS (EMC): Free Stock Analysis Report NETAPP INC (NTAP): Free Stock Analysis Report SMUCKER JM (SJM): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Here are a couple of stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: The J. M. Smucker Company SJM , with an Earnings ESP of +2.87% and a Zacks Rank #3 Deere & Company DE , with an Earnings ESP of +5.26% and a Zacks Rank #3 Want the latest recommendations from Zacks Investment Research? Click to get this free report EMC CORP -MASS (EMC): Free Stock Analysis Report NETAPP INC (NTAP): Free Stock Analysis Report SMUCKER JM (SJM): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Consider NetApp posted dismal results for the fiscal fourth quarter wherein its top and bottom line results compared unfavorably with the year-ago quarter figures.
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4c801930-f39b-46c9-86aa-aee06dfa2af0
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722616.0
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2016-08-11 00:00:00 UTC
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The Coca-Cola Co: Here’s Where KO’s Dividend Will Go Next
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DE
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https://www.nasdaq.com/articles/the-coca-cola-co%3A-heres-where-kos-dividend-will-go-next-2016-08-11
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Coca-Cola Co ( KO ) is one of Warren Buffet's dividend stocks that has paid a consistent dividend since 1920 and increased its payout for the past 54 years.
More recently Coca-Cola has grown its dividend at a 9% compound annual growth rate (CAGR) over the last 10 years. Its extraordinary track record and stable business model put Coca-Cola in the rarefied air of a Dividend King .
Presently, the company looks attractive with a 3.2% yield and the potential for further dividend increases, making the stock a particularly favorite for investors living off dividends in retirement .
However, with slowing growth due to consumers moving away from their core products as a result of the healthy living trend, should investors continue to count on Coca-Cola to deliver higher dividends for them over the next 54 years?
Coca-Cola Business Overview
Coca-Cola is the world's largest beverage company with over $44 billion in sales and a portfolio of 20 brands with over $1 billion in sales (up from 10 in 2007). Unlike other global competitors, Coke only sells beverages, with sparkling beverages accounting for 73% of global case volume last year; Coca-Cola branded beverages were 46% of global case volume.
Last year we compared the two global beverage behemoths, Coca-Cola and PepsiCo, Inc. ( PEP ), which readers can find here . Some of Coca-Cola's key brands include diet and regular Coca-Cola, Fanta, Sprite, Minute Maid, Powerade, Dasani, Vitaminwater, and Schweppes.
Coca-Cola's portfolio holds leadership positions across its major categories: #1 in sparkling, #1 in juice, #1 in ready-to-drink coffee, #2 in energy (Monster partnership), #2 in sports, #2 in water, and #2 in ready-to-drink tea. Overall, KO is #1 in value share in 25 of the top 32 global markets.
9 Stocks to Buy That Will Sprint Past Everything Else
Brand strength is reinforced by KO's advertising spending ($4 billion in FY15 and up 14% Year-Over-Year) and global distribution reach, especially in emerging markets (81% of KO's volume is outside of the US - Mexico, China, Brazil, and Japan are next four largest markets) that will become increasingly important growth drivers going forward. This cumulates in the company selling 1.9 billion servings per day of beverages to consumers.
Coca-Cola Business Analysis
One of the most efficient ways to assess the strength of a business model is to evaluate the level and durability of a company's return on invested capital. As seen below, KO has generally maintained a return on invested capital in the teens or higher for the past decade, which indicates a durable and consistent business with low capital intensity (licensing brand formulas to restaurants and bottlers).
The drop in FY11 was driven by KO's acquisition of some of its bottlers, which have lower margins and greater capital intensity. Prior to acquiring bottling operations, KO generated very high and stable returns in the 20% range.
Source: Simply Safe Dividends
It's clear the company's brands are crown jewel assets; however, less obvious is Coca-Cola's distribution platform. They deliver products to market in more than 200 countries through their network of company-owned or controlled bottling and distribution operations, independent bottling partners, distributors, wholesalers, and retailers. This network builds up to be the largest beverage distributor in the world.
Coca-Cola's growth strategy centers around meeting demand for increasing consumption of its Coca-Cola soft drink (Coke) per capita in key emerging markets, innovative product introductions, and growing share in key categories.
In the US, the per capita consumption of 8-fluid-ounce beverages is over 400 per year. However in key emerging markets, this figure is much, much lower. For instance in China, per capita consumption is only in the 30s and in India, it is in the teens. Growing per capita consumption in these enormous markets will allow global per capita consumption of Coca-Cola to rise for a long time to come.
One of the key strategies for Coca-Cola in developed markets where consumption for capita is stable-to-declining is to increase the sales per occasion by finding ways to subtly increase the price points of their products.
They can do this through different packaging sizes, bottle types, and ingredients. Mini cans, aluminum bottles, different size glass bottles, and natural ingredients are just a sampling of ways the company is increasing the spend per occasion. For many of these products, the spend per occasion is multiples of what Coca-Cola earns from their traditional 12 oz can and 2 liter bottle sales.
Other key categories including juice, sport, ready-to-drink tea/coffee, energy, and water are all growing. These are categories that Coca-Cola holds a #1 or #2 market share in and has the opportunity to continue to acquire and partner with innovative brands in the market.
Overall, these three key growth drivers should allow Coca-Cola to offset any weakness induced by flat to declining case volumes in North America and grow revenue in-line to even in excess of global GDP. This should translate into free cash flow growth in excess of inflation over the long term.
KO's Dividend Analysis
Very long-term Coca-Cola shareholders have been handsomely rewarded with uninterrupted dividends since 1920 and over a five decade growth streak. While it's unlikely many dividend growth investors today have been shareholders since the early 20th century, long term investors have benefitted from a 20-year dividend CAGR of 9.4% and 10-year CAGR of 9%, which translates into dividends per share increasing from $0.22 in 1995 to $1.32 in 2015.
More recently, Coca-Cola announced in February that it will raise its dividend by 6% in 2016 to an annualized dividend per share of $1.40. We analyze 25+ years of dividend data and 10+ years of fundamental data to understand the safety and growth prospects of a company's dividend.
Our Safety Score answers the question, "Is the current dividend payment safe?" We look at factors such as current and historical EPS and FCF payout ratios, debt levels, free cash flow generation, industry cyclicality, ROIC trends, and more.
Our Growth Score answers the question, "How fast is the dividend likely to grow?" It considers many of the same fundamental factors as the Safety Score but places more weight on growth-centric metrics like sales and earnings growth and payout ratios.
Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak."
Next Page
Coca-Cola's dividend is extremely safe as demonstrated by a Dividend Safety Score of 99, but about average for growth with a Dividend Growth Score of 46. Overall, dividend growth is largely a function of earnings (cash flow) growth, payout ratio , and business model stability. We investigate each of these areas to determine what Coke's normalized dividend growth rate should be over the coming decade.
Simply, earnings growth is tied to improving sales and margins. Adjusting for currencies (over 50% of Coca-Cola's sales are international), Coca-Cola has grown revenue more-or-less in line with global GDP growth over the last three years.
The drivers of this growth, which we detailed in the Business Analysis section above, appear to be persistent and should continue for the foreseeable future. While it is well known that Americans are consuming less and less soda per capita, these drivers should be able to allow Coca-Cola to continue to grow the top line in excess of inflation year over the coming years.
Coca-Colas has historically had extremely stable margins. The main costs in the business are raw materials (sweeteners, metals, juices, PET), advertising, and SG&A. While raw material costs grow in proportion with sales, advertising and SG&A are costs that can be leveraged.
This means that these are costs that are somewhat discretionary and can grow slower than sales growth. Therefore, margins are very stable and even have the potential to expand overtime, adjusted for the bottling refranchising efforts.
Source: Simply Safe Dividends
Coca-Cola's EPS payout ratio is 78% and its free cash flow payout ratio is 71% over the trailing 12 months. The payout ratio should be a function of business model stability and investment opportunities.
The more stable the business model, the more cash the company can routinely pay out from total cash flow without risking dividend cuts during tough times. Furthermore, the less investment opportunities the company has, the more cash the company should payout to its shareholders.
We can see this dynamic by comparing the free cash flow payout ratios of a few different consumer staple companies to cyclical businesses and companies with large investment opportunities.
The chart below shows illustrates this with the consumer staple companies (Coca-Cola, Pepsi, Colgate-Palmolive Company ( CL ), and Procter & Gamble Co ( PG ) having much larger payout ratios than cyclical business ( Dow Chemical Co ( DOW ) and Deere & Company ( DE ) ) and growth companies ( Visa Inc ( V ) and Roper Technologies Inc ( ROP ).
The chart above indicates that Coca-Cola's payout ratio is in-line with other staples peers and is unlikely to materially increase. Therefore, the majority of the dividend growth will come from increasing earnings.
Walt Disney (DIS) Stock: THIS Is What a Buying Opportunity Looks Like
When one considers the growth drivers and business model, Coca-Cola should be counted on for future dividend growth in excess of inflation or around 4-6% per year.
Conclusion: Look to KO for Steady Dividend Growth
Coca-Cola is a blue-chip stock that is a great investment to consider for dividend investors looking to add yield to their portfolio with optionality for continued dividend increases well into the future.
The company has paid an uninterrupted dividend since 1920, has an exceptional business model through all economic cycles , and generates consistent free cash flow.
However, investors looking for double-digit dividend growth well into the future should look elsewhere for opportunities.
While Coca-Cola's best days in terms of rate of growth in intrinsic value and dividend growth are likely behind the company, today's dividend investors can still reap the rewards of this iconic American company through a steadily growing intrinsic value and dividend growth in excess of inflation.
The post Coca-Cola (KO): Excellent Historical Dividend Growth, But What Does the Future Hold? appeared first on Simply Safe Dividends .
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The post The Coca-Cola Co: Here's Where KO's Dividend Will Go Next 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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However, with slowing growth due to consumers moving away from their core products as a result of the healthy living trend, should investors continue to count on Coca-Cola to deliver higher dividends for them over the next 54 years? Overall, these three key growth drivers should allow Coca-Cola to offset any weakness induced by flat to declining case volumes in North America and grow revenue in-line to even in excess of global GDP. We look at factors such as current and historical EPS and FCF payout ratios, debt levels, free cash flow generation, industry cyclicality, ROIC trends, and more.
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Unlike other global competitors, Coke only sells beverages, with sparkling beverages accounting for 73% of global case volume last year; Coca-Cola branded beverages were 46% of global case volume. Overall, dividend growth is largely a function of earnings (cash flow) growth, payout ratio , and business model stability. Source: Simply Safe Dividends Coca-Cola's EPS payout ratio is 78% and its free cash flow payout ratio is 71% over the trailing 12 months.
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Next Page Coca-Cola's dividend is extremely safe as demonstrated by a Dividend Safety Score of 99, but about average for growth with a Dividend Growth Score of 46. Conclusion: Look to KO for Steady Dividend Growth Coca-Cola is a blue-chip stock that is a great investment to consider for dividend investors looking to add yield to their portfolio with optionality for continued dividend increases well into the future. While Coca-Cola's best days in terms of rate of growth in intrinsic value and dividend growth are likely behind the company, today's dividend investors can still reap the rewards of this iconic American company through a steadily growing intrinsic value and dividend growth in excess of inflation.
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Walt Disney (DIS) Stock: THIS Is What a Buying Opportunity Looks Like When one considers the growth drivers and business model, Coca-Cola should be counted on for future dividend growth in excess of inflation or around 4-6% per year. While Coca-Cola's best days in terms of rate of growth in intrinsic value and dividend growth are likely behind the company, today's dividend investors can still reap the rewards of this iconic American company through a steadily growing intrinsic value and dividend growth in excess of inflation. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Coca-Cola Co ( KO ) is one of Warren Buffet's dividend stocks that has paid a consistent dividend since 1920 and increased its payout for the past 54 years.
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b84a16c3-39b2-4879-b3e1-4c1cff51d194
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722617.0
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2016-08-10 00:00:00 UTC
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Agco Could Face Challenges
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DE
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https://www.nasdaq.com/articles/agco-could-face-challenges-2016-08-10
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nan
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nan
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In the last few days, I have written articles explaining the risks that agricultural equipment manufacturers John Deere ( DE ) and CHN Industrial ( CNHI ) face. Today, I am going to add Agco ( AGCO ) to that list.
To summarize the previous twoarticles , I found the results of two Ritchie Brothers auctions in St. Louis and Kansas City. In those two auctions, there were several slightly used, high-end tractors and combines that were selling for 50 cents on the dollar. In some cases, even less than half off. This does not portend good things for the ag manufacturers.
Agriculture has been facing issues for the last few years due to low grain prices. These grain prices have been affected by the weather that we have experienced for the last few years. For instance, 2012 was a terrible year because of the extreme heat and droughts.
Agco is different from Deere and CNH in that almost all of AgcoAAAs equipment is farm related. According to the Annual Report, 57% of sales were tractors, 16% parts, 10% grain storage, 4% combines, 5% application equipment (pesticide sprayers) and 6% other. Agco derives 26% of sales in North America, 13% South America, 5% Asia and 56% Europe/Middle East. I am not going to say that Agco is 100% ag, but it is darn close. Deere, on the other hand, sells lawn, forestry and construction equipment. CNH heavy equipment, buses and transmissions.
The strength that Agco has over CNH and Deere is that Agco does not hold the huge amounts of debt and equipment receivables that the other two do. As of the latest quarter, Agco held $325 million in cash and $946 million in accounts receivables. It only had $741 million in accounts payable and $1.472 billion in debt. For the first six months of 2016, sales dropped 6.1% from $3.7719 billion to $3.5549 billion. That is not a huge drop.
At a recent Ritchie Brothers auction in Kansas City, an Agco Challenger CH560CC combine with only 356 hours sold for $112,500. My simplistic rule of thumb to compare hours on a tractor to mileage on a used car goes like this: 1,000 hours is equal to 20,000 miles on a car. So the combine above has the equivalence of about 7,120 miles. You can buy new cars that are demos with that many miles.
My guess is that the same combine brand new would be going for between $300,000 and $400,000. If you look at the two articles on CNH and Deere, you will see better pricing details for new equipment as you can find the information on their web sites.
So why would any farmer want to buy new? My concerns for Deere and Case are that farmers will simply let the financing divisions repo the equipment and buy back at half off. The two have huge amounts of debt. Agco is fortunate in that it does not. However, the stock is almost $50 a share and too high priced. We sold stock recently
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AGCO 15-Year Financial Data
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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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In the last few days, I have written articles explaining the risks that agricultural equipment manufacturers John Deere ( DE ) and CHN Industrial ( CNHI ) face. According to the Annual Report, 57% of sales were tractors, 16% parts, 10% grain storage, 4% combines, 5% application equipment (pesticide sprayers) and 6% other. My concerns for Deere and Case are that farmers will simply let the financing divisions repo the equipment and buy back at half off.
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In the last few days, I have written articles explaining the risks that agricultural equipment manufacturers John Deere ( DE ) and CHN Industrial ( CNHI ) face. Agco is different from Deere and CNH in that almost all of AgcoAAAs equipment is farm related. According to the Annual Report, 57% of sales were tractors, 16% parts, 10% grain storage, 4% combines, 5% application equipment (pesticide sprayers) and 6% other.
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The strength that Agco has over CNH and Deere is that Agco does not hold the huge amounts of debt and equipment receivables that the other two do. In the last few days, I have written articles explaining the risks that agricultural equipment manufacturers John Deere ( DE ) and CHN Industrial ( CNHI ) face. Agco is different from Deere and CNH in that almost all of AgcoAAAs equipment is farm related.
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The strength that Agco has over CNH and Deere is that Agco does not hold the huge amounts of debt and equipment receivables that the other two do. If you look at the two articles on CNH and Deere, you will see better pricing details for new equipment as you can find the information on their web sites. In the last few days, I have written articles explaining the risks that agricultural equipment manufacturers John Deere ( DE ) and CHN Industrial ( CNHI ) face.
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5dc04f1d-07c2-4687-bc2f-8dd24201108c
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722618.0
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2016-08-03 00:00:00 UTC
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Fiserv (FISV) Q2 Earnings In Line, Raises View for 2016
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DE
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https://www.nasdaq.com/articles/fiserv-fisv-q2-earnings-in-line-raises-view-for-2016-2016-08-03
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nan
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nan
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Fiserv Inc. 's FISV second-quarter 2016 adjusted earnings from continuing operations of $1.08 per share came in line with the Zacks Consensus Estimate. Earnings however improved 13.7% from the year-ago quarter
Total revenue increased approximately 5% year over year to $1.36 billion but missed the Zacks Consensus Estimate of $1.38 billion. Adjusted revenues grew 6% year over year to $1.29 billion.
Segment-wise, Payments and Industry Products adjusted revenues increased 8.8% year over year to $763 million. Financial Institution Services revenues were up 0.7% year over year to $612 million.
Internal revenues rose 4% driven by growth in Payments (up 7%) and Financial (up 1%) segments. Internal revenues had a negative impact of 80 basis points (bps) due to lower termination fees, EMV deferral and foreign currency impact.
Source-wise, total Processing and services revenues increased 4.5% on a year-over-year basis to $1.159 billion while Product revenues rose 7.9% year over year to $204 million.
Margins
Adjusted operating income increased to $413 million, up 5.9% from $390 million in the year-ago quarter. The company's adjusted operating margin of 31.9% increased 10 bps on a year-over-year basis.
Other Financial Details
As of Jun 30, 2016, Fiserv had cash and cash equivalents of $263 million compared with $275 million as on Dec 31, 2015.
Fiserv's cash from operating activities for the six-months ended Jun 30, 2016 was $687 million, up nearly 15% from the prior-year period. The company's free cash flow came in at $442 million, an increase of 0.7% on a year-over-year basis. Long-term debt at quarter-end was $4.548 billion.
Fiserv repurchased 2.8 million shares for $283 million in the quarter. Fiserv had 11.2 million shares remaining for buyback as of Jun 30, 2016.
Guidance
For 2016, Fiserv now expects adjusted earnings per share in a range of $4.38 to $4.45, up from $4.32 to $4.44 projected earlier. This represents a growth rate of 13% to 15% over 2015 levels.
It continues to project adjusted internal revenues to increase 5% to 6%.
Our Take
Fiserv commands a leading position in the financial and payment solutions business backed by a broad customer base and key contract wins. Additionally, the strong user base of Mobiliti ASP remains a major growth driver. Moreover, the company expects revenues from base solutions like DNA, Agiliti, EMV and Now to drive growth.
In the second quarter, Fiserv extended its 16-year old credit processing contract with John Deere Financial, a division of Deere & Company DE by another 10 years. This apart, the company added Bangkok Bank and Panin Bank to its client list in the quarter.
The company remains focused on expanding its product portfolio. In June, Fiserv launched a palm authentication biometric tool, Verifast, to enable banks and credit firms to reduce frauds and transaction time and improve branch service efficiency.
However, investors should keep in mind that increasing regulations in the banking and financial services industry and intensifying competition from the likes of Equifax Inc. EFX , Fidelity National Information Services, Inc. FIS and Global Payments Inc. remain concerns.
Currently, Fiserv has a Zacks Rank #3 (Hold).
FISERV INC Price, Consensus and EPS Surprise
FISERV INC Price, Consensus and EPS Surprise | FISERV INC Quote
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EQUIFAX INC (EFX): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
FIDELITY NAT IN (FIS): Free Stock Analysis Report
FISERV INC (FISV): 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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Internal revenues had a negative impact of 80 basis points (bps) due to lower termination fees, EMV deferral and foreign currency impact. Other Financial Details As of Jun 30, 2016, Fiserv had cash and cash equivalents of $263 million compared with $275 million as on Dec 31, 2015. Fiserv's cash from operating activities for the six-months ended Jun 30, 2016 was $687 million, up nearly 15% from the prior-year period.
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Click to get this free report EQUIFAX INC (EFX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report FIDELITY NAT IN (FIS): Free Stock Analysis Report FISERV INC (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. Internal revenues had a negative impact of 80 basis points (bps) due to lower termination fees, EMV deferral and foreign currency impact. Other Financial Details As of Jun 30, 2016, Fiserv had cash and cash equivalents of $263 million compared with $275 million as on Dec 31, 2015.
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Click to get this free report EQUIFAX INC (EFX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report FIDELITY NAT IN (FIS): Free Stock Analysis Report FISERV INC (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. Internal revenues had a negative impact of 80 basis points (bps) due to lower termination fees, EMV deferral and foreign currency impact. Other Financial Details As of Jun 30, 2016, Fiserv had cash and cash equivalents of $263 million compared with $275 million as on Dec 31, 2015.
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Internal revenues had a negative impact of 80 basis points (bps) due to lower termination fees, EMV deferral and foreign currency impact. Other Financial Details As of Jun 30, 2016, Fiserv had cash and cash equivalents of $263 million compared with $275 million as on Dec 31, 2015. Fiserv's cash from operating activities for the six-months ended Jun 30, 2016 was $687 million, up nearly 15% from the prior-year period.
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6b7e9ea5-6ca7-4f36-9331-588998d7e015
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722619.0
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2016-08-02 00:00:00 UTC
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Pairs Trade – Buy CAT Stock, Go Short DE Stock Now!
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DE
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https://www.nasdaq.com/articles/pairs-trade-buy-cat-stock-go-short-de-stock-now-2016-08-02
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If the market is always right, but at any given time also allows for both bulls and bears to thrive, diverging conditions at Caterpillar Inc. (NYSE: CAT ) and Deere & Company (NYSE: DE ) could be pointing to a solid pairs trade opportunity.
Let's review why these two similar companies are currently completely different animals both off and on the price chart - and how to approach CAT and DE as limited-risk bull and bear verticals using the options market.
The Bull: Caterpillar Inc. (CAT)
Construction and agricultural machinery play CAT has enjoyed a solid 2016 for bullish investors riding Caterpillar shares to a year-to-date gain of around 20% and more than 3x the price gain of the S&P 500 Index .
CAT benefited from a recent earnings beat which bested Street views by nearly 14% and in the process, sending shares to fresh year-to-date highs. But Caterpillar has also profited from forward-looking or "better-than-feared" investor optimism.
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The reactive bid bulldozed its way past a 16% year-over-year sales decline, as well as reduced full-year top and bottom-line guidance. The soft outlook for CAT is largely due to persistent weakness in key global segments within the oil and gas, mining and rail industries.
Part of investors' enthusiasm could be Caterpillar's attempt to come clean early, thereby setting the company up for a future earnings beat . As well, a beefed up commitment to its cost restructuring program amidst a difficult operating environment, may have helped with CAT stock's bullish performance.
CAT Stock Technical Forecast
Click to Enlarge The weekly CAT stock chart shows a name which is trying to trend higher in 2016 and failing a market meltdown, should continue to build on that strength.
Technically speaking, on the heels of this year's breakout above its 2014 - 2015 downtrend line, CAT's current higher high pattern will need to be followed by a second higher low to confirm a classic bullish uptrend.
Currently, an overbought stochastic signal supports some backing and filling for CAT stock. However, it's suspected any pullbacks will be shallow enough to hold and confirm a new uptrend for shares of Caterpillar.
CAT Bull Put Spread
Regarding an options strategy for CAT, a Sept $77.50/$75 bull put spread for a credit of 40 cents or better is attractive. Risk for this vertical is set at $2.05 if CAT stock should fall below $75 at expiration. On the flipside, a return of 22% is possible if Caterpillar remains above $77.50.
Given shares are near $81.85 in early Tuesday trading, that's a safety of margin of 5% from current levels and fits in nicely with the described technical forecast for CAT.
The Bear: Deere & Company (DE)
For the second and bearish portion of our pairs trade, DE stock, and much to the chagrin of dividend chomping bulls, is for all intents and purposes focused on corn.
With weak pricing for corn and heavy reliance on the commodity, sales of "farm toys" for the agricultural equipment giant (as one academic puts it) have been weak and don't appear to be getting better any time soon.
Some analysts and traders in the investment community have been anticipating a trough in 2016, but in late July DE did take the step of warning and cutting its full-year sales forecast in front of this month's earnings announcement.
DE stock does have the backing of Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A , NYSE: BRK.B ) which recently increased its stake to 7.5%. Nonetheless, the long-term, value-based shop may be backing up the tractor on shares of Deere at even lower prices if a conspiring and bearish chart has any say in the matter.
DE Stock Daily Chart Forecast
Click to Enlarge DE is looking a bit like a deer in headlights or maybe a bear in the head and shoulders spotlight per technicians. Similar to CAT, shares of Deere had been rallying in 2016 after a volatile breakout of its prior downtrend from 2015. Now though, it's a different matter entirely.
DE stock has confirmed a bearish continuation head and shoulders pattern by breaking neckline support. From here, DE appears to be a shoo-in for a retest of its January low.
A pending test of January's low of $70.16 offers bearish traders about 10% of downside, while a technical stop above $79.99 and recent pivot high during its neckline breakdown, equates to a reward-to-risk profile in DE stock of around three to one.
DE Bear Put Spread
Checking DE's options board and looking to improve this profile with a limited risk strategy that fits the situation, the September $77.50 / $72.50 bear put spread is attractive.
Caterpillar Inc.: CAT Stock Is Definitely Out of the Bag
Priced for around $1.65 with shares at $77.80, this limited risk spread offers profit potential of $3.35 or a return of 200% below $72.50 in DE stock.
To generate the max payout, shares of Deere will need to have fallen by nearly 7% at expiration; however, given the weak forecast both off and on the chart and earnings in mid-August, this spread has sufficient time and catalyst to supply a nice bearish harvest.
Investment accounts under Christopher Tyler's management do not currently own positions in any of the securities or their derivatives mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT .
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10 Market Predictions for the Rest of 2016
8 Giant Energy Stocks on the Verge of Collapse
The post Pairs Trade - Buy CAT Stock, Go Short DE Stock Now! 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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Some analysts and traders in the investment community have been anticipating a trough in 2016, but in late July DE did take the step of warning and cutting its full-year sales forecast in front of this month's earnings announcement. A pending test of January's low of $70.16 offers bearish traders about 10% of downside, while a technical stop above $79.99 and recent pivot high during its neckline breakdown, equates to a reward-to-risk profile in DE stock of around three to one. To generate the max payout, shares of Deere will need to have fallen by nearly 7% at expiration; however, given the weak forecast both off and on the chart and earnings in mid-August, this spread has sufficient time and catalyst to supply a nice bearish harvest.
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DE stock has confirmed a bearish continuation head and shoulders pattern by breaking neckline support. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips If the market is always right, but at any given time also allows for both bulls and bears to thrive, diverging conditions at Caterpillar Inc. (NYSE: CAT ) and Deere & Company (NYSE: DE ) could be pointing to a solid pairs trade opportunity. Let's review why these two similar companies are currently completely different animals both off and on the price chart - and how to approach CAT and DE as limited-risk bull and bear verticals using the options market.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips If the market is always right, but at any given time also allows for both bulls and bears to thrive, diverging conditions at Caterpillar Inc. (NYSE: CAT ) and Deere & Company (NYSE: DE ) could be pointing to a solid pairs trade opportunity. Caterpillar Inc.: CAT Stock Is Definitely Out of the Bag Priced for around $1.65 with shares at $77.80, this limited risk spread offers profit potential of $3.35 or a return of 200% below $72.50 in DE stock. More From InvestorPlace 10 Market Predictions for the Rest of 2016 8 Giant Energy Stocks on the Verge of Collapse The post Pairs Trade - Buy CAT Stock, Go Short DE Stock Now!
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips If the market is always right, but at any given time also allows for both bulls and bears to thrive, diverging conditions at Caterpillar Inc. (NYSE: CAT ) and Deere & Company (NYSE: DE ) could be pointing to a solid pairs trade opportunity. Caterpillar Inc.: CAT Stock Is Definitely Out of the Bag Priced for around $1.65 with shares at $77.80, this limited risk spread offers profit potential of $3.35 or a return of 200% below $72.50 in DE stock. Let's review why these two similar companies are currently completely different animals both off and on the price chart - and how to approach CAT and DE as limited-risk bull and bear verticals using the options market.
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4faf55b7-1abf-4676-8980-27437ebf75dd
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722620.0
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2016-08-01 00:00:00 UTC
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John Deere Is for the Patient, Value Investor
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DE
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https://www.nasdaq.com/articles/john-deere-patient-value-investor-2016-08-01
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nan
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nan
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John Deere ( DE ) is arguably the best tractor manufacturer in the world. The stock is down with grain prices, but will certainly rebound when grains go higher. Higher planting and good weather has dampened the price of grains and dampened the price of DeereAAAs stock. This is an excellent opportunity for the patient, value investor.
There are 315 million shares and the market cap is $24.45 million. The dividend is $2.40 and the dividend yield is 3%. Basic earnings per share were $5.81 in 2015 and the price to earnings ratio is 16.2.
TheAA 2015 sales dropped to $28.863 billion from $36.067 billion. That is called precipitous. Earnings per share are down from $8.71 to $5.81. Sales grew from $22.1 billion in 2006 to $32 billion in 2011. That is called growth.
Of their sales, 65% are derived from the U.S. and Canada and the other 35% around the world. It is a very American based company. Agriculture and Turf accounted for $22.1 billion of sales and Construction and Forestry, $6 billion.
According to the Association of Equipment Manufacturers, total farm wheel sales for the industry was 241,492 units in 2006 and 231,863 in 2015. Sales fell off a cliff when the economy took a dive in 2008 and 2009. Under 40 horsepower tractors, which are primarily used for mowing, was 133,644 in 2006 and 130,456. This segment took it on the chin in 2008/2009. The 40 to 100 horsepower segment sold 83,305 in 2006, then took a dive in 2009 to 57,382, grew with the economy to 67,447 and then 67,080. I would guess that part of the success of this segment is that much is used for cattle. The large tractor over 100 horsepower segment sold 20,831 in 2006, and was barely affected by the economy and sold 26,992 in 2009, grew to 39,807 in 2014 and then fell with grain prices to 30,206.
The asset side of the balance sheet shows: $4.6 billion in cash and securities, $3 billion in accounts receivable, $30 billion in equipment receivables. The liability side shows: $8.4 billion in loans, $4.6 billion in securitized loans, $7.3 billion in accounts payable and $23.8 billion in debt. As Deere finances a lot of its equipment, these arrangements show on the balance sheet. The company still made $3 billion in free cash flow in a bad year. S&P gives the debt an AAAAAAA rating. Pretty strong.
Earnings and revenues guidance have been decreased, which is no surprise. Deere recently laid off 120 employees in Moline, Illinois, its headquarters. No doubt, DeereAAAs future is tied to the price of corn and other grains. This is the second year of low grain prices. Farmers in many regions are losing money for every acre of corn or grain they plant. Global corn acreage has increased by 18% over the last ten years and the strong dollar has not helped American farmers. Corn was $4.40 back in June, but has crashed to $3.47. Corn was close to $8 in 2012.
TSE:6755 15-Year Financial Data
The intrinsic value of TSE:6755
Peter Lynch Chart of TSE:6755
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SGC 15-Year Financial Data
The intrinsic value of SGC
Peter Lynch Chart of SGC
Warning! GuruFocus has detected 5 Warning Signs with GOOG. Click here to check it out.
GOOG 15-Year Financial Data
The intrinsic value of GOOG
Peter Lynch Chart of GOOG
Warning! GuruFocus has detected 2 Warning Signs with DE. Click here to check it out.
DE 15-Year Financial Data
The intrinsic value of DE
Peter Lynch Chart of DE
Read More:
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Note of portfolio 59464
About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to 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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As Deere finances a lot of its equipment, these arrangements show on the balance sheet. John Deere ( DE ) is arguably the best tractor manufacturer in the world. Higher planting and good weather has dampened the price of grains and dampened the price of DeereAAAs stock.
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The asset side of the balance sheet shows: $4.6 billion in cash and securities, $3 billion in accounts receivable, $30 billion in equipment receivables. DE 15-Year Financial Data The intrinsic value of DE Peter Lynch Chart of DE Read More: Free 7-day trial of Premium Membership Note of portfolio 5945AAA Note of portfolio 5945AAA Note of portfolio 59464 About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. John Deere ( DE ) is arguably the best tractor manufacturer in the world.
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The liability side shows: $8.4 billion in loans, $4.6 billion in securitized loans, $7.3 billion in accounts payable and $23.8 billion in debt. DE 15-Year Financial Data The intrinsic value of DE Peter Lynch Chart of DE Read More: Free 7-day trial of Premium Membership Note of portfolio 5945AAA Note of portfolio 5945AAA Note of portfolio 59464 About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. John Deere ( DE ) is arguably the best tractor manufacturer in the world.
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John Deere ( DE ) is arguably the best tractor manufacturer in the world. Higher planting and good weather has dampened the price of grains and dampened the price of DeereAAAs stock. The dividend is $2.40 and the dividend yield is 3%.
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ceaeeb33-6491-43f1-9310-52a9e405ee74
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722621.0
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2016-07-29 00:00:00 UTC
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Fiserv (FISV) to Post Q2 Earnings: Will it Surprise Again?
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DE
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https://www.nasdaq.com/articles/fiserv-fisv-to-post-q2-earnings%3A-will-it-surprise-again-2016-07-29
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nan
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nan
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Fiserv, Inc.FISV , a financial services technology provider, is slated to report second-quarter 2016 results on Aug 2. Last quarter, it posted a positive earnings surprise of 3.92%. The company has outperformed the Zacks Consensus Estimate in three out of the trailing four quarters with an average positive earnings surprise of 2.79%.
Factors at Play
Fiserv commands a leading position in the financial and payment solutions business backed by a broad customer base and key contract wins. Additionally, its strong user base of Mobiliti ASP remains a major growth driver. Moreover, the company expects revenues from base solutions like DNA, Agiliti, EMV and Now to drive growth.
In the second quarter, Fiserv extended its 16-year old credit processing contract with John Deere Financial, a division of Deere & Company DE by another 10 years. This apart, the company added Bangkok Bank and Panin bank to its client list in the quarter.
The company remains focused on expanding its product portfolio. In June, Fiserv launched a palm authentication biometric tool, Verifast, to enable banks and credit firms to reduce frauds and transaction time and improve branch service efficiency.
However, investors should keep in mind that increasing regulations in the banking and financial services industry and intensifying competition from the likes of Fidelity National Information Services, Inc. FIS and others remain pressing concerns.
Earnings Whispers?
Our proven model does not conclusively show that Fiserv will beat earnings 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 3 (Hold) for this to happen.That is not the case here as you will see below.
Zacks ESP: Fiserv has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.08.
Zacks Rank: Fiserv has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
FISERV INC Price and EPS Surprise
FISERV INC Price and EPS Surprise | FISERV INC Quote
Stock to Consider
Here is a stock worth considering that, as per our model, has the right combination of elements to post an earnings beat this quarter:
Zoetis Inc ZTS has an earnings ESP of + 2.27% and a Zacks Rank #1.
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DEERE & CO (DE): Free Stock Analysis Report
FIDELITY NAT IN (FIS): Free Stock Analysis Report
FISERV INC (FISV): Free Stock Analysis Report
ZOETIS INC (ZTS): 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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Fiserv, Inc.FISV , a financial services technology provider, is slated to report second-quarter 2016 results on Aug 2. In the second quarter, Fiserv extended its 16-year old credit processing contract with John Deere Financial, a division of Deere & Company DE by another 10 years. This apart, the company added Bangkok Bank and Panin bank to its client list in the quarter.
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FISERV INC Price and EPS Surprise FISERV INC Price and EPS Surprise | FISERV INC Quote Stock to Consider Here is a stock worth considering that, as per our model, has the right combination of elements to post an earnings beat this quarter: Zoetis Inc ZTS has an earnings ESP of + 2.27% and a Zacks Rank #1. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report FIDELITY NAT IN (FIS): Free Stock Analysis Report FISERV INC (FISV): Free Stock Analysis Report ZOETIS INC (ZTS): Free Stock Analysis Report To read this article on Zacks.com click here. Fiserv, Inc.FISV , a financial services technology provider, is slated to report second-quarter 2016 results on Aug 2.
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FISERV INC Price and EPS Surprise FISERV INC Price and EPS Surprise | FISERV INC Quote Stock to Consider Here is a stock worth considering that, as per our model, has the right combination of elements to post an earnings beat this quarter: Zoetis Inc ZTS has an earnings ESP of + 2.27% and a Zacks Rank #1. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report FIDELITY NAT IN (FIS): Free Stock Analysis Report FISERV INC (FISV): Free Stock Analysis Report ZOETIS INC (ZTS): Free Stock Analysis Report To read this article on Zacks.com click here. Fiserv, Inc.FISV , a financial services technology provider, is slated to report second-quarter 2016 results on Aug 2.
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FISERV INC Price and EPS Surprise FISERV INC Price and EPS Surprise | FISERV INC Quote Stock to Consider Here is a stock worth considering that, as per our model, has the right combination of elements to post an earnings beat this quarter: Zoetis Inc ZTS has an earnings ESP of + 2.27% and a Zacks Rank #1. Fiserv, Inc.FISV , a financial services technology provider, is slated to report second-quarter 2016 results on Aug 2. In the second quarter, Fiserv extended its 16-year old credit processing contract with John Deere Financial, a division of Deere & Company DE by another 10 years.
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998b1a0e-24a3-4ff4-809d-ba9319f96957
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722622.0
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2016-07-29 00:00:00 UTC
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Hillenbrand (HI) to Report Q3 Earnings: What's in Store?
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DE
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https://www.nasdaq.com/articles/hillenbrand-hi-to-report-q3-earnings%3A-whats-in-store-2016-07-29
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nan
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nan
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Hillenbrand Inc.HI , the holding company for Batesville Casket Company, a leader in the North American death care industry, is set to report third quarter fiscal 2016 results on Aug 3. Last quarter, this global diversified industrial company posted a negative earnings surprise of 14.04%.
Let's see how things are shaping up prior to this announcement.
Factors to Consider
Hillenbrand's focus on acquisitions, its global presence and margin expansion through operational improvement have been driving earnings since the past few quarters.
In Feb 2016, Hillenbrand completed its acquisition of Red Valve Company, a global leader in highly-engineered valves. The acquisition will complement the acquisition of ABEL (in November) and will expand its presence in the flow control market. We expect these acquisitions to boost growth in the to-be-reported quarter.
However, the company has been facing certain challenges over the past year, including currency, deficit environment for capital investments and a slowdown in some key markets, especially China. Slower economic growth has been particularly difficult for industries such as mining, plastics, and for equipment used in the production of potash, frac sand and other commodities.
Though the company has taken a number of actions to reduce its costs and boost its profitability, many of the customers will continue to face uncertainty, without any clear signs of improvement in the near term. Additionally, the company forecasts lower volume in the burial market this year due to a lighter-than-expected flu season and an increase in cremation rate. The company continues to expect challenging end markets for the Process Equipment Group and Batesville in fiscal 2016.
HILLENBRAND INC Price and EPS Surprise
HILLENBRAND INC Price and EPS Surprise | HILLENBRAND INC Quote
Earnings Whispers?
Our proven model does not conclusively show that Hillenbrand is likely to beat earnings 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 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: ESP for Hillenbrand is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 51 cents per share.
Zacks Rank: Hillenbrand has a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Stocks in the industrial sector that have both a positive earnings ESP and a favorable Zacks Rank are:
Harsco Corporation HSC , with an Earnings ESP of +38.46% and a Zacks Rank #1.
Ball Corporation BLL , with an Earnings ESP of +1.01% and a Zacks Rank #3.
Deere & Company DE , with an Earnings ESP of +9.47% and a Zacks Rank #3.
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 >>
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
BALL CORP (BLL): Free Stock Analysis Report
HILLENBRAND INC (HI): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
HARSCO CORP (HSC): 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 company has been facing certain challenges over the past year, including currency, deficit environment for capital investments and a slowdown in some key markets, especially China. Hillenbrand Inc.HI , the holding company for Batesville Casket Company, a leader in the North American death care industry, is set to report third quarter fiscal 2016 results on Aug 3. Factors to Consider Hillenbrand's focus on acquisitions, its global presence and margin expansion through operational improvement have been driving earnings since the past few quarters.
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Stocks to Consider Stocks in the industrial sector that have both a positive earnings ESP and a favorable Zacks Rank are: Harsco Corporation HSC , with an Earnings ESP of +38.46% and a Zacks Rank #1. Click to get this free report BALL CORP (BLL): Free Stock Analysis Report HILLENBRAND INC (HI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report HARSCO CORP (HSC): Free Stock Analysis Report To read this article on Zacks.com click here. Hillenbrand Inc.HI , the holding company for Batesville Casket Company, a leader in the North American death care industry, is set to report third quarter fiscal 2016 results on Aug 3.
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Stocks to Consider Stocks in the industrial sector that have both a positive earnings ESP and a favorable Zacks Rank are: Harsco Corporation HSC , with an Earnings ESP of +38.46% and a Zacks Rank #1. Click to get this free report BALL CORP (BLL): Free Stock Analysis Report HILLENBRAND INC (HI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report HARSCO CORP (HSC): Free Stock Analysis Report To read this article on Zacks.com click here. Hillenbrand Inc.HI , the holding company for Batesville Casket Company, a leader in the North American death care industry, is set to report third quarter fiscal 2016 results on Aug 3.
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Stocks to Consider Stocks in the industrial sector that have both a positive earnings ESP and a favorable Zacks Rank are: Harsco Corporation HSC , with an Earnings ESP of +38.46% and a Zacks Rank #1. Hillenbrand Inc.HI , the holding company for Batesville Casket Company, a leader in the North American death care industry, is set to report third quarter fiscal 2016 results on Aug 3. Factors to Consider Hillenbrand's focus on acquisitions, its global presence and margin expansion through operational improvement have been driving earnings since the past few quarters.
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e6c2fb2d-cd52-4c84-864a-37dccfded913
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722623.0
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2016-07-28 00:00:00 UTC
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Is a Disappointment in Store for Eaton (ETN) in Q2 Earnings?
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DE
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https://www.nasdaq.com/articles/is-a-disappointment-in-store-for-eaton-etn-in-q2-earnings-2016-07-28
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nan
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nan
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Eaton CorporationETN will release second-quarter 2016 financial results before the market opens on Aug 2. Last quarter, this power management company reported a positive earnings surprise of 3.53%. Let's see how things are shaping up prior to this announcement.
Factors to Consider
Eaton expects earnings per share for the second quarter to be in the range of $1 to $1.10 per share. Eaton expects its organic revenue to improve in excess of 5% sequentially, as the first quarter is historically its weakest in terms of revenue generation.
However, the weakness in the some of the company's end markets could have an adverse impact on its results on a year-over-year basis. Negative currency translation might also have some impact on second-quarter revenues. Eaton expects organic revenues to decline between 2% and 4%, reflecting continuing sluggish markets around the world.
EATON CORP PLC Price and EPS Surprise
EATON CORP PLC Price and EPS Surprise | EATON CORP PLC Quote
Earnings Whispers
Our proven model does not conclusively show that Eaton Corporation is likely to beat estimates this quarter. That 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 : The Most Accurate estimate stands at $1.05 while the Zacks Consensus Estimate is pegged higher at $1.06, resulting in an Earnings ESP of -0.94%.
Zacks Rank : Eaton carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Instead, here are a few players in the industrial product sector that have the right combination of elements to post an earnings beat this quarter.
Harsco Corp. HSC has an Earnings ESP of +38.46% and a Zacks Rank #1. It is expected to report second-quarter earnings on Aug 4.
Ball Corp. BLL has an Earnings ESP of +1.01% and a Zacks Rank #3. It is slated to report second-quarter earnings on Aug 4.
Deere & Co. DE has an Earnings ESP of +9.47% and a Zacks Rank #3. It is slated to report third-quarter fiscal 2016 earnings on Aug 19.
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 >>
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
BALL CORP (BLL): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
EATON CORP PLC (ETN): Free Stock Analysis Report
HARSCO CORP (HSC): 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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Eaton expects organic revenues to decline between 2% and 4%, reflecting continuing sluggish markets around the world. Stocks to Consider Instead, here are a few players in the industrial product sector that have the right combination of elements to post an earnings beat this quarter. Factors to Consider Eaton expects earnings per share for the second quarter to be in the range of $1 to $1.10 per share.
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EATON CORP PLC Price and EPS Surprise EATON CORP PLC Price and EPS Surprise | EATON CORP PLC Quote Earnings Whispers Our proven model does not conclusively show that Eaton Corporation is likely to beat estimates this quarter. Click to get this free report BALL CORP (BLL): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report EATON CORP PLC (ETN): Free Stock Analysis Report HARSCO CORP (HSC): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Consider Eaton expects earnings per share for the second quarter to be in the range of $1 to $1.10 per share.
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EATON CORP PLC Price and EPS Surprise EATON CORP PLC Price and EPS Surprise | EATON CORP PLC Quote Earnings Whispers Our proven model does not conclusively show that Eaton Corporation is likely to beat estimates this quarter. Click to get this free report BALL CORP (BLL): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report EATON CORP PLC (ETN): Free Stock Analysis Report HARSCO CORP (HSC): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Consider Eaton expects earnings per share for the second quarter to be in the range of $1 to $1.10 per share.
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Click to get this free report BALL CORP (BLL): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report EATON CORP PLC (ETN): Free Stock Analysis Report HARSCO CORP (HSC): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Consider Eaton expects earnings per share for the second quarter to be in the range of $1 to $1.10 per share. Eaton expects organic revenues to decline between 2% and 4%, reflecting continuing sluggish markets around the world.
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2ddde774-9628-4028-864f-11408faef6d7
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722624.0
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2016-07-26 00:00:00 UTC
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Proto Labs (PRLB) Set for Q2 Earnings: What's in the Cards?
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DE
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https://www.nasdaq.com/articles/proto-labs-prlb-set-for-q2-earnings%3A-whats-in-the-cards-2016-07-26
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nan
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nan
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Proto Labs, Inc.PRLB is scheduled to report second-quarter 2016 results on Jul 28, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 45 cents.
In the trailing four quarters, Proto Labs reported better-than-expected results in two, while underperforming in the rest with an average beat of 0.60%. Last quarter, the company's earnings of 40 cents per share lagged the Zacks Consensus Estimate of 42 cents by 4.76%. Let us see how things are shaping up for Proto Labs this quarter.
Factors to Influence Q2 Results
Proto Labs' efficient management and marketing team as well as its efforts for researching and developing new and improved products will prove beneficial, going forward. Also, various organic and inorganic initiatives are expected to enhance the company's revenue-generation capabilities in the quarters ahead. However, the impacts of these positives are dimmed by the presence of some near-term headwinds.
Financial performance of Proto Labs is highly correlated to the economic conditions in the U.S. and of the foreign countries where it operates. Though headwinds, including unfavorable foreign currency movements and uncertainties in some developed and developing economies have eased a bit, we believe that industrial products stocks like Proto Labs are still affected by them.
In addition, Proto Labs faces stiff competition from other prototype manufacturers. Any failure in the research and development of new products or meeting the specific requirements of the customers might severely affect the company's image and increase its financial burden as well.
Earnings Whispers
Our proven model does not conclusively show that Proto Labs is likely to beat earnings this quarter. That 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. That is not the case here as you will see below.
Zacks ESP: Earnings ESP of Proto Labs is currently 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 45 cents.
Zacks Rank: Proto Labs's Zacks Rank #2 when combined with 0.00% ESP makes surprise predictions difficult.
PROTO LABS INC Price and EPS Surprise
PROTO LABS INC Price and EPS Surprise | PROTO LABS INC Quote
Note that we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Harsco Corporation HSC , with an Earnings ESP of +38.46% and a Zacks Rank #1.
Ingersoll-Rand Plc IR , with an Earnings ESP of +0.77% and a Zacks Rank #2.
Deere & Company DE , with an Earnings ESP of +9.47% and a Zacks Rank #3.
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 >>
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 & CO (DE): Free Stock Analysis Report
INGERSOLL RAND (IR): Free Stock Analysis Report
HARSCO CORP (HSC): Free Stock Analysis Report
PROTO LABS INC (PRLB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the trailing four quarters, Proto Labs reported better-than-expected results in two, while underperforming in the rest with an average beat of 0.60%. Factors to Influence Q2 Results Proto Labs' efficient management and marketing team as well as its efforts for researching and developing new and improved products will prove beneficial, going forward. Any failure in the research and development of new products or meeting the specific requirements of the customers might severely affect the company's image and increase its financial burden as well.
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Click to get this free report DEERE & CO (DE): Free Stock Analysis Report INGERSOLL RAND (IR): Free Stock Analysis Report HARSCO CORP (HSC): Free Stock Analysis Report PROTO LABS INC (PRLB): Free Stock Analysis Report To read this article on Zacks.com click here. In the trailing four quarters, Proto Labs reported better-than-expected results in two, while underperforming in the rest with an average beat of 0.60%. Factors to Influence Q2 Results Proto Labs' efficient management and marketing team as well as its efforts for researching and developing new and improved products will prove beneficial, going forward.
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Click to get this free report DEERE & CO (DE): Free Stock Analysis Report INGERSOLL RAND (IR): Free Stock Analysis Report HARSCO CORP (HSC): Free Stock Analysis Report PROTO LABS INC (PRLB): Free Stock Analysis Report To read this article on Zacks.com click here. In the trailing four quarters, Proto Labs reported better-than-expected results in two, while underperforming in the rest with an average beat of 0.60%. Factors to Influence Q2 Results Proto Labs' efficient management and marketing team as well as its efforts for researching and developing new and improved products will prove beneficial, going forward.
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Deere & Company DE , with an Earnings ESP of +9.47% and a Zacks Rank #3. In the trailing four quarters, Proto Labs reported better-than-expected results in two, while underperforming in the rest with an average beat of 0.60%. Factors to Influence Q2 Results Proto Labs' efficient management and marketing team as well as its efforts for researching and developing new and improved products will prove beneficial, going forward.
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65976993-5905-4a05-b017-7c54e040cb8b
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722625.0
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2016-07-25 00:00:00 UTC
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Notable Two Hundred Day Moving Average Cross - DE
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DE
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https://www.nasdaq.com/articles/notable-two-hundred-day-moving-average-cross-de-2016-07-25
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nan
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nan
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.49, changing hands as low as $77.23 per share. Deere & Co. shares are currently trading off about 2.8% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $97.49 as the 52 week high point - that compares with a last trade of $77.91.
According to the ETF Finder at ETF Channel, DE makes up 21.10% of the First Trust Indxx Global Agriculture ETF (Symbol: FTAG) which is trading lower by about 0.2% on the day Monday.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.49, changing hands as low as $77.23 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $97.49 as the 52 week high point - that compares with a last trade of $77.91. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.49, changing hands as low as $77.23 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $97.49 as the 52 week high point - that compares with a last trade of $77.91. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.49, changing hands as low as $77.23 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $97.49 as the 52 week high point - that compares with a last trade of $77.91. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.49, changing hands as low as $77.23 per share. According to the ETF Finder at ETF Channel, DE makes up 21.10% of the First Trust Indxx Global Agriculture ETF (Symbol: FTAG) which is trading lower by about 0.2% on the day Monday. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1e580e64-0d9d-4b5c-b8fb-aca384fe7bcf
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722626.0
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2016-07-22 00:00:00 UTC
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Allegion (ALLE) Q2 Earnings: Will it Surpass Estimates?
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DE
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https://www.nasdaq.com/articles/allegion-alle-q2-earnings%3A-will-it-surpass-estimates-2016-07-22
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nan
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nan
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We expect Allegion plcALLE - a security solution provider for homes and businesses - to beat expectations when it reports second-quarter 2016 results on Jul 28, before the opening bell.
Last quarter, Allegion posted a negative earnings surprise of 4.69%. However, the company has surpassed estimates in three of the trailing four quarters, with an average beat of 8.77%.
ALLEGION PLC Price and EPS Surprise
ALLEGION PLC Price and EPS Surprise | ALLEGION PLC Quote
Why a Likely Positive Surprise?
Our proven model shows that Allegion is likely to beat earnings this quarter because it has the right combination of two key ingredients.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +2.25%. This is meaningful and a leading indicator of a likely positive earnings surprise for shares.
Zacks Rank: Allegion's Zacks Rank #2 (Buy) increases the predictive power of ESP. The combination of Allegion's Zacks Rank #2 and +2.25% ESP makes us confident of an earnings beat.
The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
What is Driving the Better-than-Expected Earnings?
Allegion primarily relies on the commercial and residential construction and remodeling space, which have been picking up momentum of late, especially in the U.S. These should drive the demand for the company's products and thereby its top line in the soon-to-be reported quarter.
Additionally, we expect margin expansion to be supported by prudent cost control and productivity initiatives.
However, we are concerned about the economic slowdown in certain pockets of the world where Allegion has a considerable presence. The prevailing economic sluggishness in the Eurozone and the persistent recession in China are likely to keep Allegion's international profits under pressure in the to-be-reported quarter. Moreover, owing to the company's substantial international presence, volatile currency translations could prove to be a significant headwind for the company, though the U.S dollar is softer.
Other Stocks to Consider
Here are some other stocks in the broader industrial products sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Caterpillar Inc. CAT , with an Earnings ESP of +2.08% and a Zacks Rank #3
Deere & Company DE , with an Earnings ESP of +9.47% and a Zacks Rank #3
Sealed Air Corporation SEE , with an Earnings ESP of +1.56% and a Zacks Rank #3
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SEALED AIR CORP (SEE): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
ALLEGION PLC (ALLE): 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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Allegion primarily relies on the commercial and residential construction and remodeling space, which have been picking up momentum of late, especially in the U.S. Additionally, we expect margin expansion to be supported by prudent cost control and productivity initiatives. The prevailing economic sluggishness in the Eurozone and the persistent recession in China are likely to keep Allegion's international profits under pressure in the to-be-reported quarter.
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Other Stocks to Consider Here are some other stocks in the broader industrial products sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: Caterpillar Inc. CAT , with an Earnings ESP of +2.08% and a Zacks Rank #3 Deere & Company DE , with an Earnings ESP of +9.47% and a Zacks Rank #3 Sealed Air Corporation SEE , with an Earnings ESP of +1.56% and a Zacks Rank #3 Want the latest recommendations from Zacks Investment Research? Click to get this free report SEALED AIR CORP (SEE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report ALLEGION PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. We expect Allegion plcALLE - a security solution provider for homes and businesses - to beat expectations when it reports second-quarter 2016 results on Jul 28, before the opening bell.
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Other Stocks to Consider Here are some other stocks in the broader industrial products sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: Caterpillar Inc. CAT , with an Earnings ESP of +2.08% and a Zacks Rank #3 Deere & Company DE , with an Earnings ESP of +9.47% and a Zacks Rank #3 Sealed Air Corporation SEE , with an Earnings ESP of +1.56% and a Zacks Rank #3 Want the latest recommendations from Zacks Investment Research? Click to get this free report SEALED AIR CORP (SEE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report ALLEGION PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. We expect Allegion plcALLE - a security solution provider for homes and businesses - to beat expectations when it reports second-quarter 2016 results on Jul 28, before the opening bell.
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Other Stocks to Consider Here are some other stocks in the broader industrial products sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: Caterpillar Inc. CAT , with an Earnings ESP of +2.08% and a Zacks Rank #3 Deere & Company DE , with an Earnings ESP of +9.47% and a Zacks Rank #3 Sealed Air Corporation SEE , with an Earnings ESP of +1.56% and a Zacks Rank #3 Want the latest recommendations from Zacks Investment Research? Click to get this free report SEALED AIR CORP (SEE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report ALLEGION PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. We expect Allegion plcALLE - a security solution provider for homes and businesses - to beat expectations when it reports second-quarter 2016 results on Jul 28, before the opening bell.
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efe16c7f-4598-422e-9d3a-040aa4e538db
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722627.0
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2016-07-21 00:00:00 UTC
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Agco: Darling of the Value Community
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DE
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https://www.nasdaq.com/articles/agco-darling-value-community-2016-07-21
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nan
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nan
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Agco ( AGCO ) is a U.S. based tractor manufacturer that is down with grain prices. It is a darling of the value investing community, as it is out of favor. What will probably change this is a year of inclement weather that will raise grain prices.
The company has 82.47 million shares and trades at a market cap of $4 billion. The dividend is 52 cents and dividend yield 1%. Trailing earnings per share are $2.81 and the price to earnings ratio is 17.
Sales have been cyclical and have followed grain prices. In 2011, revenues were $8.7 billion, 2012 $9.97 billion, 2013 $10.8 billion, 2014 $9.7 billion, and 2015 $7.5 billion. Earnings per share were $6.10 in 2011 and $3.06 in 2015.
The asset side of the balance sheet shows: $248 million in cash, $943 million in accounts receivable, and $1.7 billion in inventories. The liability side: $321 million in short term debt, $674 million in accounts payable, and $1.258 billion in debt.
Agco no longer sells its eponymously named orange tractor. Its brands now include: Massey Ferguson, Fendt, Challenger, and Valtra. Agco also has a grain storage division named GSI. The company also bought a grain handler in Denmark named Cimbria for $340 million. The company makes 16% from parts, 4% from storage, and the rest from tractors and other ag machinery.
51% of sales are generated in Europe, 26% North America, 13% South America, and 10% in the rest of the world. As you might expect, South American sales have been beaten up.
Looking at research reports from Credit Suisse and S&P, neither are sanguine on AgcoAAAs outlooks. Earnings per share and revenue estimates are hardly much different than what will be produced in 2016. Basically, the analysts really donAAAt know because they have no idea where grain prices are going to be.
AgcoAAAs two main competitors, John Deere ( DE ) and Case , are in the same boat. Their stocks are down too. Agco differentiates itself in that it is a pure play ag company. John Deere is also in construction, lawn and garden, forestry, and several other industries. Case is in buses, construction, and transmissions. One would think that Agco would respond more favorably to grain prices but that might not be the case.
So whatAAAs going to drive this stock? Grain prices. Corn was $8 a bushel in 2012 and now trades for $3.37. Soybean s were almost $18 back then and are now a little over $10. The good news is that prices are off the bottoms set earlier this year. When the weather was questionable in the spring, prices rose sharply but have since calmed down.
Every ag person will point to how the global population is exploding and those people need to be fed. This is no doubt true. Unfortunately, grains are correlated to most other commodities. What will probably need to happen is for an unseasonably rainy or dry year in the U.S. to raise grain prices.
Gurus that hold shares include: Third
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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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The company also bought a grain handler in Denmark named Cimbria for $340 million. The company has 82.47 million shares and trades at a market cap of $4 billion. The dividend is 52 cents and dividend yield 1%.
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The company has 82.47 million shares and trades at a market cap of $4 billion. The dividend is 52 cents and dividend yield 1%. The asset side of the balance sheet shows: $248 million in cash, $943 million in accounts receivable, and $1.7 billion in inventories.
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The company has 82.47 million shares and trades at a market cap of $4 billion. The dividend is 52 cents and dividend yield 1%. The asset side of the balance sheet shows: $248 million in cash, $943 million in accounts receivable, and $1.7 billion in inventories.
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The company has 82.47 million shares and trades at a market cap of $4 billion. The dividend is 52 cents and dividend yield 1%. The asset side of the balance sheet shows: $248 million in cash, $943 million in accounts receivable, and $1.7 billion in inventories.
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23621288-bdd8-4eff-8c56-d6802d158314
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722628.0
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2016-07-06 00:00:00 UTC
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Deere (DE) Poised to Grow Despite Weak Agricultural Sector
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DE
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https://www.nasdaq.com/articles/deere-de-poised-to-grow-despite-weak-agricultural-sector-2016-07-06
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nan
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nan
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We issued an updated research report on Deere & CompanyDE on Jul 5, 2016. The agricultural equipment maker is poised to benefit in the long term on the back of increased global demand for food, shelter and infrastructure. Further, improvement in political conditions in Brazil and a positive Indian agricultural outlook will drive growth. However, unfavorable foreign currency movements, a weak agricultural sector and sluggish economic growth remain headwinds for the company's growth.
Deere remains optimistic about the long term, based on steady investments in new products and geographies. It expects robust profits, backed by increased global demand for food, shelter and infrastructure. Further, favorable trends derived from a growing, more affluent and increasing population and rising living standards will provide ample opportunities for long-term growth.
Additionally, Brazil announced details of eligible rates for government-sponsored finance programs. Rates per Moderfrota will increase from 7.5% to 8.5% for small and mid-sized farmers and from 9% to 10.5% for large farmers. While the rates are being hiked, they remain below the level of inflation in Brazil. This announcement is a positive indicator. It removes an element of uncertainty for farmers, and conveys confidence that the government will continue to support agriculture in spite of the economic and political challenges in the region.
In India, the government continues to provide assistance to the agricultural sector with programs such as minimum support prices for commodities, irrigation and crop insurance. Growth in the economy is outpacing other emerging markets and attracting foreign investments. This year's monsoon is expected to provide above-average moisture after two years of below-normal seasons. These factors are resulting in improved industry demand in India. These positive factors will augment Deere's growth.
However, Deere reduced its fiscal-year forecast for net income to $1.2 billion due to ongoing market pressures. It projects total equipment sales to decline 9% year over year in fiscal 2016. Sales are also likely to deteriorate about 12% from the year-ago quarter in third-quarter fiscal 2016.
The company expects Agriculture and Turf equipment sales decline of 8% in fiscal 2016, including an unfavorable currency-translation impact of about 2%. Industry sales for agricultural equipment in the U.S. and Canada are expected to be down 15%−20% in fiscal 2016 owing to low commodity prices and stagnant farm income. In the EU28, sales are projected to be flat to down 5% due to low commodity prices and farm income, including potential pressure on the dairy sector.
Again, the USDA projected flat farm income for 2016. This remains a drag for Deere's performance along with its peers including AGCO Corporation AGCO , Titan International Inc. TWI and Lindsay Corporation LNN in the machinery-farming industry.
Further, in South America, Deere's industry sales of tractors and combines are expected to decrease 15%−20% year over year due to economic uncertainty in Brazil. Sales in Asia are projected to be flat to down modestly, largely because of the weakness in China.
Deere foresees global sales for Construction & Forestry equipment to be down about 13% in fiscal 2016. The decline reflects the impact of soft conditions in the North-American energy sector. In forestry, global sales are expected to be down 5%−10% from year-ago levels. The outlook for net income from Financial Services has been slashed to $480 million which reflects less-favorable financing spreads, higher losses on lease residual values and an increased provision for credit losses.
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DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
LINDSAY CORP (LNN): Free Stock Analysis Report
TITAN INTL INC (TWI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Further, favorable trends derived from a growing, more affluent and increasing population and rising living standards will provide ample opportunities for long-term growth. It removes an element of uncertainty for farmers, and conveys confidence that the government will continue to support agriculture in spite of the economic and political challenges in the region. In India, the government continues to provide assistance to the agricultural sector with programs such as minimum support prices for commodities, irrigation and crop insurance.
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This remains a drag for Deere's performance along with its peers including AGCO Corporation AGCO , Titan International Inc. TWI and Lindsay Corporation LNN in the machinery-farming industry. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report TITAN INTL INC (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. We issued an updated research report on Deere & CompanyDE on Jul 5, 2016.
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Further, in South America, Deere's industry sales of tractors and combines are expected to decrease 15%−20% year over year due to economic uncertainty in Brazil. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report TITAN INTL INC (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. We issued an updated research report on Deere & CompanyDE on Jul 5, 2016.
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It projects total equipment sales to decline 9% year over year in fiscal 2016. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report TITAN INTL INC (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. We issued an updated research report on Deere & CompanyDE on Jul 5, 2016.
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cc4a7e9d-c29a-4cee-9e6c-ca57355404c6
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722629.0
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2016-07-06 00:00:00 UTC
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Lindsay to Grow in the Long Run Despite Near-Term Hurdles
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DE
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https://www.nasdaq.com/articles/lindsay-to-grow-in-the-long-run-despite-near-term-hurdles-2016-07-06
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nan
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nan
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During the third-quarter fiscal 2016 conference call, Lindsay Corporation 's LNN President and Chief Executive Officer Rick Parod stated that even though challenging agricultural market conditions will persist in the near term, the stabilization of commodities and recalibration of farm input costs signal that farmer sentiments will improve towards investment. This, in turn, will trigger demand for the company's irrigation machines and irrigation-management platform.
Lindsay's shares dipped 1% following its earnings release on Jun 30. The company reported an 18% drop in adjusted earnings to 90 cents per share due to higher operating expenses.
The irrigation-equipment manufacturer reported a 12% fall in revenues to $141 million, as both irrigation and infrastructure revenues declined in the quarter. Domestic irrigation revenues decreased 15% due to lower unit volume and reduced market pricing while international irrigation revenues rose 4%. While sales improved in several markets, Brazil and other markets witnessed declines.
LINDSAY CORP Price
LINDSAY CORP Price | LINDSAY CORP Quote
Parod is concerned that lower commodity prices and reduced farm income will affect farmer sentiments regarding capital goods purchases. The USDA's current projection for 2016 net farm income is $54.8 billion, down 3% from the prior year. This also marks a plunge of nearly 56% from the record high set in 2013. In the international arena, Brazil remains a near-term challenge with slow FINAME funding for equipment purchases and significant government turmoil. However, on a positive note, he added that Brazil has been an excellent growth driver in recent years and as economic conditions improve, it will resume its growth trajectory.
Following Brexit, an economic uncertainty has been created in the U.K. However, Lindsay generates a meager 1% of its revenues from the U.K, though revenues in Europe are around 10%. Lindsay Corporation has a hedging policy in place for large dollar denominated or large non-dollar denominated transactions and for foreign assets.
Infrastructure segment revenues decreased in the quarter primarily due to fewer larger Road Zipper system projects completed as compared to the prior year. Parod states that the recent passage of the Highway Bill provides a strong ground for future growth of road-safety products sales and Road Zipper Systems sales and leases. It has been instrumental in the recent increase in current order backlog. Backlog at May 31, 2016 was $61.2 million compared to $53.2 million in May 31, 2015. He also added that the development of the Road Zipper System potential project pipeline is positive.
Lindsay continues to recognize benefits from the water-related acquisitions completed over the past few years. These acquisitions have helped the company boost its gross margins, provided incremental revenue and profits derived from non-agricultural markets and delivered platforms for future growth. While these smaller strategic businesses currently carry higher SG&A run rates than the company's core pivot irrigation business, these additions position it well in the irrigation market. Going forward, the company expects the water-related businesses obtained to further leverage SG&A expenses and to generate attractive growth rates and operating margins.
Despite near-term headwinds, long-term trends remain positive for Lindsay owing to increased agricultural production for the growing population, higher food production, efficient water use and infrastructure upgrades and expansion.
Lindsay Corporation is a leading designer and manufacturer of self-propelled center pivot and lateral-move irrigation systems. It belongs to the machinery-farming industry along with Alamo Group, Inc. ALG , AGCO Corporation AGCO and Deere & Company DE .
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DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
LINDSAY CORP (LNN): Free Stock Analysis Report
ALAMO GROUP INC (ALG): 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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During the third-quarter fiscal 2016 conference call, Lindsay Corporation 's LNN President and Chief Executive Officer Rick Parod stated that even though challenging agricultural market conditions will persist in the near term, the stabilization of commodities and recalibration of farm input costs signal that farmer sentiments will improve towards investment. Infrastructure segment revenues decreased in the quarter primarily due to fewer larger Road Zipper system projects completed as compared to the prior year. These acquisitions have helped the company boost its gross margins, provided incremental revenue and profits derived from non-agricultural markets and delivered platforms for future growth.
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It belongs to the machinery-farming industry along with Alamo Group, Inc. ALG , AGCO Corporation AGCO and Deere & Company DE . Click to get this free report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report To read this article on Zacks.com click here. During the third-quarter fiscal 2016 conference call, Lindsay Corporation 's LNN President and Chief Executive Officer Rick Parod stated that even though challenging agricultural market conditions will persist in the near term, the stabilization of commodities and recalibration of farm input costs signal that farmer sentiments will improve towards investment.
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During the third-quarter fiscal 2016 conference call, Lindsay Corporation 's LNN President and Chief Executive Officer Rick Parod stated that even though challenging agricultural market conditions will persist in the near term, the stabilization of commodities and recalibration of farm input costs signal that farmer sentiments will improve towards investment. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report To read this article on Zacks.com click here. This, in turn, will trigger demand for the company's irrigation machines and irrigation-management platform.
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The irrigation-equipment manufacturer reported a 12% fall in revenues to $141 million, as both irrigation and infrastructure revenues declined in the quarter. Infrastructure segment revenues decreased in the quarter primarily due to fewer larger Road Zipper system projects completed as compared to the prior year. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report To read this article on Zacks.com click here.
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d483302f-b3f4-42b4-99ca-a7d360755807
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722630.0
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2016-07-04 00:00:00 UTC
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The Best Commodity ETFs
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DE
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https://www.nasdaq.com/articles/best-commodity-etfs-2016-07-04
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nan
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nan
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Image source: Getty Images.
Exchange-traded funds have opened up the world of commodities to investors who never had access to them before. The commodity ETFs below allow you to buy everything from precious metals (gold and silver) to oil, natural gas, and even obscure commodities like coffee, soybeans, and corn.
Source: Fund sponsors.
Precious metals
Metals like gold and silver are perfect for exchange-traded funds because they don't go stale like food commodities, and are easy to store unlike flammable natural gas and oil. The SPDR Gold Shares and iShares Silver Trust are the biggest and most popular ETFs for buying gold and silver, carrying annual expense ratios of 0.40% and 0.50%, respectively.
These funds simply track the movements in the spot price for gold and silver by holding physical precious metals in storage at large banks around the world. The silver ETF holds silver at Brink's in London, and JPMorgan in London and New York. HSBC is the custodian for the gold in the SPDR Gold Trust.
Because these ETFs hold physical precious metals, they closely track the ups and downs in the value of gold and silver, resulting in returns that differ only by the modest annual expense ratios for each fund. To leverage the rise in gold and silver prices , consider investing in gold or silver miner ETFs .
Oil and natural gas
Unlike gold or silver, ETFs can't simply store oil and natural gas in storage tanks. The United States Oil and United States Natural Gas ETFs invest in these energy commodities by buying the front-month futures contract. Thus, these funds buy short-term futures contracts and roll them over each month.
Because oil and natural gas ETFs invest in futures contracts, their performance can vary wildly from the performance of oil and natural gas spot prices. Frequently, futures dated further out in the future trade at a premium to near-dated futures contracts. Thus, July oil futures might trade for $60 a barrel while August futures trade at $62 per barrel. When the July futures are rolled into August futures, the ETFs effectively sell oil at $60 to buy it at $62.
Over time, the difference in prices results in falling prices for oil and natural gas ETFs, thus making them suitable only for short-term speculation rather than long-term investing. Investors who want to make a long-term investment in oil and natural gas producers might prefer the SPDR S&P Oil & Gas Exploration and Production ETF (NYSEMKT: XOP) , which invests in a diversified portfolio of 60 oil and gas producing companies and carries an annual expense ratio of just 0.35% annually.
Diversified commodities
You can invest in a portfolio of commodities by investing in the United States Commodity Index, which tracks a portfolio that includes everything from gold and silver to soybeans, tin, coffee, copper, and even cattle!
Like the oil and natural gas ETFs, this fund also invests in futures and rebalanced monthly, making it susceptible to declines even when commodity prices are rising. Therefore, this ETF is best for short-term speculation rather than long-term buy and hold.
Long-term investors might prefer the iShares MSCI Global Agriculture Producers ETF (NYSEMKT: VEGI) , which invests in companies that benefit from rising commodity prices directly (food producers) and indirectly (equipment producers like Deere & Company ). When paired with an precious metals ETF, investors will have exposure to rising commodity prices in a diversified fashion, and avoid the risks that come with futures-based ETFs.
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Jordan Wathen has no position in any stocks mentioned. The Motley Fool is short John Deere. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Because these ETFs hold physical precious metals, they closely track the ups and downs in the value of gold and silver, resulting in returns that differ only by the modest annual expense ratios for each fund. Like the oil and natural gas ETFs, this fund also invests in futures and rebalanced monthly, making it susceptible to declines even when commodity prices are rising. Exchange-traded funds have opened up the world of commodities to investors who never had access to them before.
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Long-term investors might prefer the iShares MSCI Global Agriculture Producers ETF (NYSEMKT: VEGI) , which invests in companies that benefit from rising commodity prices directly (food producers) and indirectly (equipment producers like Deere & Company ). Exchange-traded funds have opened up the world of commodities to investors who never had access to them before. Precious metals Metals like gold and silver are perfect for exchange-traded funds because they don't go stale like food commodities, and are easy to store unlike flammable natural gas and oil.
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Exchange-traded funds have opened up the world of commodities to investors who never had access to them before. Precious metals Metals like gold and silver are perfect for exchange-traded funds because they don't go stale like food commodities, and are easy to store unlike flammable natural gas and oil. Because these ETFs hold physical precious metals, they closely track the ups and downs in the value of gold and silver, resulting in returns that differ only by the modest annual expense ratios for each fund.
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To leverage the rise in gold and silver prices , consider investing in gold or silver miner ETFs . Like the oil and natural gas ETFs, this fund also invests in futures and rebalanced monthly, making it susceptible to declines even when commodity prices are rising. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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fb2576ca-ddf8-4227-90bd-b83fc7ed7212
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722631.0
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2016-06-30 00:00:00 UTC
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First Citizens Bancshares Inc (de) (FCNCA) Chairman and CEO Frank B Jr Holding Bought $130,698 ...
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DE
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https://www.nasdaq.com/articles/first-citizens-bancshares-inc-de-fcnca-chairman-and-ceo-frank-b-jr-holding-bought-130698
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nan
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nan
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Chairman and CEO of First Citizens Bancshares Inc (de) ( FCNCA ) Frank B Jr Holding bought 600 shares of FCNCA on 06/27/2016 at an average price of $217.83 a share. The total cost of this purchase was $130,698.
First Citizens BancShares Inc ( DE ) is a financial holding company. The Company through its subsidiaries provides banking services including transaction and savings deposit accounts, commercial and consumer loans, trust and asset management. First Citizens Bancshares Inc (de) has a market cap of $2.94 billion; its shares were traded at around $245.20 with a P/E ratio of 15.08 and P/S ratio of 2.16. The dividend yield of First Citizens Bancshares Inc (de) stocks is 0.49%. First Citizens Bancshares Inc (de) had an annual average EBITDA growth of 5.60% over the past 10 years.
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Warning! GuruFocus has detected 3 Warning Signs with FCNCA. Click here to check it out.
FCNCA 15-Year Financial Data
The intrinsic value of FCNCA
Peter Lynch Chart of FCNCA
CEO Recent Trades:
Chairman and CEO, 10% Owner Frank B Jr Holding bought 600 shares of FCNCA stock on 06/27/2016 at the average price of $217.83. The price of the stock has increased by 12.56% since.
Chairman and CEO, 10% Owner Frank B Jr Holding bought 300 shares of FCNCA stock on 06/17/2016 at the average price of $225. The price of the stock has increased by 8.98% since.
Directors and Officers Recent Trades:
Director John M Alexander bought 500 shares of FCNCA stock on 06/28/2016 at the average price of $237.64. The price of the stock has increased by 3.18% since.
For the complete insider trading history of FCNCA, click here.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to 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 Company through its subsidiaries provides banking services including transaction and savings deposit accounts, commercial and consumer loans, trust and asset management. For the complete insider trading history of FCNCA, click here.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. Chairman and CEO of First Citizens Bancshares Inc (de) ( FCNCA ) Frank B Jr Holding bought 600 shares of FCNCA on 06/27/2016 at an average price of $217.83 a share.
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Chairman and CEO of First Citizens Bancshares Inc (de) ( FCNCA ) Frank B Jr Holding bought 600 shares of FCNCA on 06/27/2016 at an average price of $217.83 a share. FCNCA 15-Year Financial Data The intrinsic value of FCNCA Peter Lynch Chart of FCNCA CEO Recent Trades: Chairman and CEO, 10% Owner Frank B Jr Holding bought 600 shares of FCNCA stock on 06/27/2016 at the average price of $217.83. First Citizens BancShares Inc ( DE ) is a financial holding company.
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Chairman and CEO of First Citizens Bancshares Inc (de) ( FCNCA ) Frank B Jr Holding bought 600 shares of FCNCA on 06/27/2016 at an average price of $217.83 a share. FCNCA 15-Year Financial Data The intrinsic value of FCNCA Peter Lynch Chart of FCNCA CEO Recent Trades: Chairman and CEO, 10% Owner Frank B Jr Holding bought 600 shares of FCNCA stock on 06/27/2016 at the average price of $217.83. For the complete insider trading history of FCNCA, click here.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors.
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First Citizens BancShares Inc ( DE ) is a financial holding company. FCNCA 15-Year Financial Data The intrinsic value of FCNCA Peter Lynch Chart of FCNCA CEO Recent Trades: Chairman and CEO, 10% Owner Frank B Jr Holding bought 600 shares of FCNCA stock on 06/27/2016 at the average price of $217.83. For the complete insider trading history of FCNCA, click here.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors.
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00448df8-b55d-420e-ba83-002e6af77d88
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722632.0
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2016-06-27 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for June 28, 2016
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-june-28-2016-2016-06-27
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nan
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nan
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Deere & Company ( DE ) will begin trading ex-dividend on June 28, 2016. A cash dividend payment of $0.6 per share is scheduled to be paid on August 01, 2016. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 9th quarter that DE has paid the same dividend. At the current stock price of $81.72, the dividend yield is 2.94%.
The previous trading day's last sale of DE was $81.72, representing a -16.81% decrease from the 52 week high of $98.23 and a 16.48% increase over the 52 week low of $70.16.
DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Canon, Inc. ( CAJ ). DE's current earnings per share, an indicator of a company's profitability, is $4.97. Zacks Investment Research reports DE's forecasted earnings growth in 2016 as -32.53%, compared to an industry average of -5.9%.
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 )
iShares iBonds Mar 2023 Term Corporate ex-Financials ETF ( IBCE ).
The top-performing ETF of this group is VEGI with an increase of 12.8% over the last 100 days. It also has the highest percent weighting of DE at 7.54%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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. DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Canon, Inc. ( CAJ ). Zacks Investment Research reports DE's forecasted earnings growth in 2016 as -32.53%, compared to an industry average of -5.9%.
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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 ) iShares iBonds Mar 2023 Term Corporate ex-Financials ETF ( IBCE ). 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 June 28, 2016.
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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 ) iShares iBonds Mar 2023 Term Corporate ex-Financials ETF ( IBCE ).
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A cash dividend payment of $0.6 per share is scheduled to be paid on August 01, 2016. DE's current earnings per share, an indicator of a company's profitability, is $4.97. The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) VanEck Vectors Agribusiness ETF ( MOO ) iShares iBonds Mar 2023 Term Corporate ex-Financials ETF ( IBCE ).
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011f575f-330c-44ca-bfa4-2d41b9e7c4d9
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722633.0
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2016-06-24 00:00:00 UTC
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Ex-Dividend Reminders Include Deere & Company (DE)
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DE
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https://www.nasdaq.com/articles/ex-dividend-reminders-include-deere-company-de-2016-06-24
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Looking at the universe of stocks we cover at Dividend Channel , Deere & Company ( DE ), Sun Hydraulics Corporation ( SNHY ), and Lincoln Electric Holdings, Inc. ( LECO ) will all trade ex-dividend for their respective upcoming dividends on 6/28/16.
Deere will pay its quarterly dividend of 60 cents per share on 8/1/16, Sun Hydraulics will pay its quarterly dividend of 9 cents per share on 7/15/16, and Lincoln Electric Holdings will pay its quarterly dividend of 32 cents per share on 7/15/16.
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Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
As a percentage of DE's recent stock price of $81.70, this dividend works out to approximately 0.73%, so look for shares of Deere to trade 0.73% lower - all else being equal - when DE shares open for trading on 6/28/16.
Similarly, investors should look for SNHY to open 0.30% lower in price and for LECO to open 0.55% lower, all else being equal.
The Top 10 S&P 500 Dividend Stocks to Buy Now
Below are dividend history charts for DE, SNHY, and LECO, showing historical dividends prior to the most recent ones declared.
Deere :
Sun Hydraulics :
Lincoln Electric Holdings :
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.
The 10 Best Dividend Stocks Across All 10 Sectors
If they do continue, the current estimated yields on annualized basis would be 2.94% for Deere, 1.21% for Sun Hydraulics, and 2.18% for Lincoln Electric Holdings.
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The post Ex-Dividend Reminders Include Deere & Company (DE) appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere : Sun Hydraulics : Lincoln Electric Holdings : In general, dividends are not always predictable, following the ups and downs of company profits over time. The 10 Best Dividend Stocks Across All 10 Sectors If they do continue, the current estimated yields on annualized basis would be 2.94% for Deere, 1.21% for Sun Hydraulics, and 2.18% for Lincoln Electric Holdings. 7 Monthly Dividend Stocks to Pay Your Bills The post Ex-Dividend Reminders Include Deere & Company (DE) appeared first on InvestorPlace .
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Looking at the universe of stocks we cover at Dividend Channel , Deere & Company ( DE ), Sun Hydraulics Corporation ( SNHY ), and Lincoln Electric Holdings, Inc. ( LECO ) will all trade ex-dividend for their respective upcoming dividends on 6/28/16. Deere will pay its quarterly dividend of 60 cents per share on 8/1/16, Sun Hydraulics will pay its quarterly dividend of 9 cents per share on 7/15/16, and Lincoln Electric Holdings will pay its quarterly dividend of 32 cents per share on 7/15/16. Deere : Sun Hydraulics : Lincoln Electric Holdings : In general, dividends are not always predictable, following the ups and downs of company profits over time.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Looking at the universe of stocks we cover at Dividend Channel , Deere & Company ( DE ), Sun Hydraulics Corporation ( SNHY ), and Lincoln Electric Holdings, Inc. ( LECO ) will all trade ex-dividend for their respective upcoming dividends on 6/28/16. Deere will pay its quarterly dividend of 60 cents per share on 8/1/16, Sun Hydraulics will pay its quarterly dividend of 9 cents per share on 7/15/16, and Lincoln Electric Holdings will pay its quarterly dividend of 32 cents per share on 7/15/16. dividend stocks should be on your radar screen » As a percentage of DE's recent stock price of $81.70, this dividend works out to approximately 0.73%, so look for shares of Deere to trade 0.73% lower - all else being equal - when DE shares open for trading on 6/28/16.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Looking at the universe of stocks we cover at Dividend Channel , Deere & Company ( DE ), Sun Hydraulics Corporation ( SNHY ), and Lincoln Electric Holdings, Inc. ( LECO ) will all trade ex-dividend for their respective upcoming dividends on 6/28/16. dividend stocks should be on your radar screen » As a percentage of DE's recent stock price of $81.70, this dividend works out to approximately 0.73%, so look for shares of Deere to trade 0.73% lower - all else being equal - when DE shares open for trading on 6/28/16. The 10 Best Dividend Stocks Across All 10 Sectors If they do continue, the current estimated yields on annualized basis would be 2.94% for Deere, 1.21% for Sun Hydraulics, and 2.18% for Lincoln Electric Holdings.
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13876927-0928-487f-a16a-970456420808
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722634.0
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2016-06-23 00:00:00 UTC
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Caterpillar or Deere: Which Is the Better Turnaround Play?
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DE
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https://www.nasdaq.com/articles/caterpillar-or-deere-which-better-turnaround-play-2016-06-23
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nan
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nan
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Image source: Getty Images
The recent quarterly results releases from Deere (NYSE: DE) and Caterpillar (NYSE: CAT) show that both companies are experiencing some tough market headwinds. They are putting severe pressure on the companies' top and bottom lines, with Deere's earnings per share falling by 23% in the second quarter of the year from the same period of last year. Meanwhile, Caterpillar's EPS dropped by 77% in the first quarter of the year versus the comparable year-ago period, and even when restructuring charges were excluded, the decline was still 68%.
Improving performance?
On the face of it, Deere seems to be holding up better as a business than Caterpillar. Its profit falls are less severe right now, but this is not forecast to be the case in the next financial year. While Deere's earnings are due to decline by 4.6% between October 2016 and October 2017, Caterpillar is expected to return to growth of 0.6% in the same period.
A key reason for this is the major cost-cutting and restructuring that Caterpillar is undertaking. Notably, in its most recent quarterly update it stated that period costs and variable manufacturing costs in the quarter fell by $500 million from the first quarter of 2016. And with Caterpillar expecting to cut up to 5,000 salaried and management employees from its payroll this year, as well as close to 20 production facilities in total, the company's operating costs could be lowered by as much as $1.5 billion per annum.
Demographic tailwind
Undoubtedly, Caterpillar is taking extreme measures to reduce its costs as it seeks to offset falling sales. Of course, Deere is also attempting to become more streamlined, and its recent update stated that the company benefited from an increasingly flexible cost structure as well as lower production costs and operating expenses. And while such moves are not set to return Deere to positive EPS growth in either of the next two financial years, in the long run the company seems to have greater turnaround prospects than Caterpillar.
That's because of the demographic tailwind from which Deere is set to benefit in a major way. With the world's population expected to rise by a third over the next 35 years, demand for food is likely to rise at a rapid rate. Therefore, machinery suppliers such as Deere, focused on providing the equipment necessary to produce food supplies, are likely to reap rewards.
Logistical issues also have the potential to bolster demand for the company's products. For example, the proportion of urban dwellers is set to rise so that 70% rather than today's 50% of the world's population is due to live in urban areas by 2050. This makes efficient food production even more important, and technological advancements (such as autonomous vehicles, which Deere is already producing) are likely to become more in demand.
Transition
Contrast this with Caterpillar's outlook. While Deere's near-term outlook is set to be worse than that of its industrial peer, its long-term growth prospects seem to be far more sound. For example, the Chinese economy is continuing its transition from being capital expenditure-led toward being consumer expenditure-led. This is bad news for Caterpillar since it relied on its resources and energy and transportation segments for 54% of its sales in 2015. And while Caterpillar's construction segment could pick up the slack in the long run, a tightening monetary policy could cause housing demand to come under pressure over the medium term.
Looking ahead
That's not to say that Caterpillar is a stock to avoid. Its strategy of cutting costs is sound, but it is likely to become a more niche player in future years as its operating environment continues to decline. However, Deere could go in the opposite direction in terms of becoming a more integral part of world food supply, which could become a key investment theme over the coming years and decades.
So, while Caterpillar could still deliver impressive share price gains due to the positive impact of its cost-cutting strategy on its financial performance, Deere seems to be the better turnaround play for long-term investors.
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discovery85 has no position in any stocks mentioned. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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And while Caterpillar's construction segment could pick up the slack in the long run, a tightening monetary policy could cause housing demand to come under pressure over the medium term. So, while Caterpillar could still deliver impressive share price gains due to the positive impact of its cost-cutting strategy on its financial performance, Deere seems to be the better turnaround play for long-term investors. Image source: Getty Images The recent quarterly results releases from Deere (NYSE: DE) and Caterpillar (NYSE: CAT) show that both companies are experiencing some tough market headwinds.
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Image source: Getty Images The recent quarterly results releases from Deere (NYSE: DE) and Caterpillar (NYSE: CAT) show that both companies are experiencing some tough market headwinds. While Deere's earnings are due to decline by 4.6% between October 2016 and October 2017, Caterpillar is expected to return to growth of 0.6% in the same period. So, while Caterpillar could still deliver impressive share price gains due to the positive impact of its cost-cutting strategy on its financial performance, Deere seems to be the better turnaround play for long-term investors.
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They are putting severe pressure on the companies' top and bottom lines, with Deere's earnings per share falling by 23% in the second quarter of the year from the same period of last year. And while such moves are not set to return Deere to positive EPS growth in either of the next two financial years, in the long run the company seems to have greater turnaround prospects than Caterpillar. So, while Caterpillar could still deliver impressive share price gains due to the positive impact of its cost-cutting strategy on its financial performance, Deere seems to be the better turnaround play for long-term investors.
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And while such moves are not set to return Deere to positive EPS growth in either of the next two financial years, in the long run the company seems to have greater turnaround prospects than Caterpillar. So, while Caterpillar could still deliver impressive share price gains due to the positive impact of its cost-cutting strategy on its financial performance, Deere seems to be the better turnaround play for long-term investors. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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53d302c1-8d07-47df-a2cc-f92aeb2873f7
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722635.0
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2016-06-03 00:00:00 UTC
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Fiserv (FISV) Scales 52-Week High on Solid Growth Prospects
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DE
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https://www.nasdaq.com/articles/fiserv-fisv-scales-52-week-high-on-solid-growth-prospects-2016-06-03
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nan
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nan
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Fiserv, Inc.FISV reached a new 52-week high of $106.65 in yesterday's trading session. Its shares have been rising since May 5 when the company announced its first quarter 2016 results. In addition, the company made a couple of collaboration-related announcements, which increased investor's optimism.
Fiserv has extended its 16-year old credit processing contract with John Deere Financial, a division of Deere & Company DE by another 10 years. This apart, the company revealed that its Mobiliti Edge based solutions have been selected by the Bangkok Bank to enable mobile banking services for its clients.
Fiserv holds a dominant position in the financial and payments solutions business. In the recently announced first quarter results the company managed to deliver strong bottom line numbers despite soft top line growth. Moreover, the company has a strong pipeline and expanding margins, which allowed it to reaffirm its earnings and revenue guidance for 2016.
Fiserv has also made a couple of strategic acquisitions in the first quarter, ACI Worldwide's Community and Billers Solutions, which would allow it to expand its product portfolio further over the long run.
In the past 30 days, upward estimate revisions have pushed up the Zacks Consensus Estimate for 2016 by 0.7% to $4.42 per share, while for 2017 it inched up 0.4% to $4.97. Moreover, in the same period, the company's shares jumped over 8% compared with a gain of approximately 2% in the S&P 500 index.
Nonetheless, the company's highly leveraged balance sheet and stiff competition from peers like Equifax Inc. EFX , Fidelity National Information Services, Inc. FIS and Global Payments Inc remain concerns.
Currently, Fiserv has a Zacks Rank #3 (Hold).
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EQUIFAX INC (EFX): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
FIDELITY NAT IN (FIS): Free Stock Analysis Report
FISERV INC (FISV): 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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Fiserv has also made a couple of strategic acquisitions in the first quarter, ACI Worldwide's Community and Billers Solutions, which would allow it to expand its product portfolio further over the long run. Nonetheless, the company's highly leveraged balance sheet and stiff competition from peers like Equifax Inc. EFX , Fidelity National Information Services, Inc. FIS and Global Payments Inc remain concerns. In addition, the company made a couple of collaboration-related announcements, which increased investor's optimism.
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Click to get this free report EQUIFAX INC (EFX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report FIDELITY NAT IN (FIS): Free Stock Analysis Report FISERV INC (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, the company made a couple of collaboration-related announcements, which increased investor's optimism. Fiserv has extended its 16-year old credit processing contract with John Deere Financial, a division of Deere & Company DE by another 10 years.
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Click to get this free report EQUIFAX INC (EFX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report FIDELITY NAT IN (FIS): Free Stock Analysis Report FISERV INC (FISV): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, the company made a couple of collaboration-related announcements, which increased investor's optimism. Fiserv has extended its 16-year old credit processing contract with John Deere Financial, a division of Deere & Company DE by another 10 years.
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In addition, the company made a couple of collaboration-related announcements, which increased investor's optimism. Fiserv has extended its 16-year old credit processing contract with John Deere Financial, a division of Deere & Company DE by another 10 years. In the recently announced first quarter results the company managed to deliver strong bottom line numbers despite soft top line growth.
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fb3329b6-2d79-4084-851a-abf0d044477a
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722636.0
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2016-06-03 00:00:00 UTC
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Time to Buy Deere & Company Stock?
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DE
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https://www.nasdaq.com/articles/time-buy-deere-company-stock-2016-06-03
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nan
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nan
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As Deere & Company 's(NYSE: DE) fiscal year 2016 has progressed, its management has lowered full-year earnings and cash flow forecasts. Moreover, competitors such as Caterpillar Inc. (NYSE: CAT) in construction machinery and AGCO Corporation (NYSE: AGCO) are both seeing weakening conditions. That said, all of the stocks mentioned are outperforming the S&P 500 on a year-to-date basis as I write.
What's going on with Deere in 2016, and does it's poor relative performance mean it's time to buy the stock?
DE data by YCharts .
Deere & Company's 2016
Since the company's fourth quarter, Deere management has reduced its full-year net income guidance from $1.4 billion to $1.2 billion, and cash flow from operations guidance from $2.6 billion to $2.1 billion -- both significant reductions. Clearly, the market has been in a forgiving mood, but let's take a closer look at segmental performance in order to better gauge its earnings trends.
The following table breaks out the full-year 2016 guidance at the end of each quarter. As you can see below, the big changes have come from its construction & forestry and financial services operations -- somewhat surprising given that agriculture conditions have been weakening in 2016.
Net sales figures are adjusted for currency. Data source: Deere & Company presentations.
However, the numbers don't tell the full picture, and Deere's prospects are actually challenged in each segment.
Construction & forestry
As you can see above, currency-adjusted net sales guidance is trending negatively in 2016. Moreover, Caterpillar reported a 19% decline in construction industries sales in its recent first quarter, with "declines in construction activity related to oil and gas" resulting in "availability of construction equipment for other purposes."
The resulting pricing pressure felt by Caterpillar (partly as a consequence of dealers aggressively reducing inventory) is likely to be affecting Deere as well. Until conditions improve with oil & gas capital spending, it's hard to see a significant improvement in Deere's fortunes.
Agriculture & turf
Agriculture is Deere's core operation (responsible for nearly 80% of machinery sales in the first half) and key to its long-term growth. Unfortunately, the headline net sales figures don't tell the full story. Although adjusted net sales growth guidance has stayed the same, Deere referenced a less favorable product mix of sales in the second quarter.
Essentially, large agricultural machinery sales (which tend to be higher-margin products) are floundering, while small and mid-size tractors are, according to AGCO Corporation's first-quarter earnings release, generating higher sales, helping to partially offset the decline in large agricultural equipment. However, what's good for overall sales isn't necessarily good for the company's margin, so don't be fooled by Deere's maintenance of underlying agriculture & turf sales guidance.
On a brighter note, Deere does appear to be managing its overall inventory quite well. Here's a look at inventory levels divided by the next quarter's sales. As you can see below, the ratio started rising -- relative to previous years -- throughout 2015, but the first two quarters of 2016 have seen comparable ratios to previous years -- Deere is reducing inventory well.
Worldwide financial services
This is arguably the most problematic segment for Deere, and as you can see in the first table, management has reduced full-year net income expectations by $70 million (12%) already in 2016. The reasons are threefold:
Less favorable financing spreads
Increased provisions for credit losses
Higher losses on residual values
There is little Deere can do about interest rate movements, but management deserves more scrutiny on the other two issues. As you can see below, Deere continues to see strong growth in the equipment it has on operating leases (as opposed to buying equipment, and given the weakness in the industry, it's inevitable that credit losses will increase while residual values are likely to be pressured.
Deere's management raised its 2016 forecast credit loss provision to 0.23%, compared to 0.17% at the end of April. It's still below the 10-year average of 0.26%, but that's little solace as financial services have grown in importance to Deere as equipment leases have grown. Moreover, the incremental increase in credit loss provisions is hurting profitability.
To be fair, Deere's management is taking action by " significantly restricting our short-term lease offerings, and increasing risk sharing with dealer," but until end-market conditions improve, the company is likely to see more pressure on its financial earnings.
The bottom line
Until the agricultural sector -- meaning crop prices -- turns upwards, it's likely Deere will continue to face headwinds in all three segments. Management is making the right moves, and Deere's inventory management is the best in its class, but pressure continues to build on its business. Cautious investors would be best advised to monitor end-market conditions before buying stock in Deere.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just 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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As Deere & Company 's(NYSE: DE) fiscal year 2016 has progressed, its management has lowered full-year earnings and cash flow forecasts. Worldwide financial services This is arguably the most problematic segment for Deere, and as you can see in the first table, management has reduced full-year net income expectations by $70 million (12%) already in 2016. To be fair, Deere's management is taking action by " significantly restricting our short-term lease offerings, and increasing risk sharing with dealer," but until end-market conditions improve, the company is likely to see more pressure on its financial earnings.
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As Deere & Company 's(NYSE: DE) fiscal year 2016 has progressed, its management has lowered full-year earnings and cash flow forecasts. Deere & Company's 2016 Since the company's fourth quarter, Deere management has reduced its full-year net income guidance from $1.4 billion to $1.2 billion, and cash flow from operations guidance from $2.6 billion to $2.1 billion -- both significant reductions. However, what's good for overall sales isn't necessarily good for the company's margin, so don't be fooled by Deere's maintenance of underlying agriculture & turf sales guidance.
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Deere & Company's 2016 Since the company's fourth quarter, Deere management has reduced its full-year net income guidance from $1.4 billion to $1.2 billion, and cash flow from operations guidance from $2.6 billion to $2.1 billion -- both significant reductions. Although adjusted net sales growth guidance has stayed the same, Deere referenced a less favorable product mix of sales in the second quarter. However, what's good for overall sales isn't necessarily good for the company's margin, so don't be fooled by Deere's maintenance of underlying agriculture & turf sales guidance.
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Although adjusted net sales growth guidance has stayed the same, Deere referenced a less favorable product mix of sales in the second quarter. However, what's good for overall sales isn't necessarily good for the company's margin, so don't be fooled by Deere's maintenance of underlying agriculture & turf sales guidance. As you can see below, Deere continues to see strong growth in the equipment it has on operating leases (as opposed to buying equipment, and given the weakness in the industry, it's inevitable that credit losses will increase while residual values are likely to be pressured.
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2016-06-03 00:00:00 UTC
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Noteworthy Friday Option Activity: LLY, LAZ, DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-lly-laz-de-2016-06-03
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Eli Lilly & Co. (Symbol: LLY), where a total of 19,440 contracts have traded so far, representing approximately 1.9 million underlying shares. That amounts to about 47.9% of LLY's average daily trading volume over the past month of 4.1 million shares. Particularly high volume was seen for the $72.50 strike put option expiring July 15, 2016 , with 8,627 contracts trading so far today, representing approximately 862,700 underlying shares of LLY. Below is a chart showing LLY's trailing twelve month trading history, with the $72.50 strike highlighted in orange:
Lazard (Symbol: LAZ) options are showing a volume of 3,055 contracts thus far today. That number of contracts represents approximately 305,500 underlying shares, working out to a sizeable 43% of LAZ's average daily trading volume over the past month, of 710,420 shares. Particularly high volume was seen for the $32.80 strike put option expiring June 17, 2016 , with 855 contracts trading so far today, representing approximately 85,500 underlying shares of LAZ. Below is a chart showing LAZ's trailing twelve month trading history, with the $32.80 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 15,388 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 42.1% of DE's average daily trading volume over the past month, of 3.7 million shares. Especially high volume was seen for the $85 strike call option expiring July 15, 2016 , with 1,422 contracts trading so far today, representing approximately 142,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $85 strike highlighted in orange:
For the various different available expirations for LLY options , LAZ 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 $72.50 strike put option expiring July 15, 2016 , with 8,627 contracts trading so far today, representing approximately 862,700 underlying shares of LLY. Particularly high volume was seen for the $32.80 strike put option expiring June 17, 2016 , with 855 contracts trading so far today, representing approximately 85,500 underlying shares of LAZ. Especially high volume was seen for the $85 strike call option expiring July 15, 2016 , with 1,422 contracts trading so far today, representing approximately 142,200 underlying shares of DE.
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Below is a chart showing LAZ's trailing twelve month trading history, with the $32.80 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 15,388 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 42.1% of DE's average daily trading volume over the past month, of 3.7 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Eli Lilly & Co. (Symbol: LLY), where a total of 19,440 contracts have traded so far, representing approximately 1.9 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Eli Lilly & Co. (Symbol: LLY), where a total of 19,440 contracts have traded so far, representing approximately 1.9 million underlying shares. Particularly high volume was seen for the $72.50 strike put option expiring July 15, 2016 , with 8,627 contracts trading so far today, representing approximately 862,700 underlying shares of LLY. Below is a chart showing DE's trailing twelve month trading history, with the $85 strike highlighted in orange: For the various different available expirations for LLY options , LAZ options , or DE options , visit StockOptionsChannel.com.
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That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 42.1% of DE's average daily trading volume over the past month, of 3.7 million shares. Especially high volume was seen for the $85 strike call option expiring July 15, 2016 , with 1,422 contracts trading so far today, representing approximately 142,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $85 strike highlighted in orange: For the various different available expirations for LLY options , LAZ options , or DE options , visit StockOptionsChannel.com.
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722638.0
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2016-05-31 00:00:00 UTC
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Deere Stock Gets 2 Upgrades: 3 Things You Need to Know
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https://www.nasdaq.com/articles/deere-stock-gets-2-upgrades-3-things-you-need-know-2016-05-31
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With shares down 13% over the past year, investors in Deere & Company (NYSE: DE) stock haven't had a lot to cheer about lately -- until just this past week. Over the past two weeks, Deere stock has collected two separate upgrades, both of which advise investors to buy the stock.
Last week, analysts from Canada's BMO Capital upgraded Deere shares to outperform and assigned a $96 price target to the $83 shares. This morning, analysts from UBS agreed with BMO, upgrading Deere stock to an equivalent buy rating, and assigning a $94 price target.
But are these analysts right or wrong? Here are three things you need to know.
Is it morning in America for corn growers -- and for Deere stock? Or is that a sunset I see?
Thing No. 1: Deere's not caught in the headlights
Deere stock has underperformed the rest of the stock market since at least 2011, reports TheFly.com . But that underperformance isn't for lack of trying. Reading from BMO's report, TheFly notes that Deere has lowered costs, output, and inventory, all in the interests of salvaging profits in a weak market for agricultural equipment.
Granted, profits are down. But at least Deere is still earning profits -- $1.9 billion last year. That's due in large part to the fact that since revenue peaked in 2013, Deere has slashed its operating costs by nearly 20% (according to data from S&P Global Market Intelligence ).
Thing No. 2: But Deere is caught up in forces it cannot control
But why are Deere's sales down 30% over the same time period, you may ask? Well, as UBS explains (in a write-up covered by StreetInsider.com ), the reason is quite simple: "Deere still trades with corn." When corn prices are low, as they are today, farmers make less money and have less money to spend on farm equipment -- and less incentive to spend money on farm equipment, because the crops that equipment would be harvesting are worth so little.
That's necessarily bad for Deere's business. (It's also pretty bad for rival Caterpillar (NYSE: CAT) , for that matter. Down 16% over the past year, Caterpillar stock has suffered even worse than Deere. But last quarter, as you may recall, Caterpillar won an upgrade in April -- from Goldman Sachs .)
Thing No. 3: Times change, and weather changes, too...and so do corn prices
But here's the good news for Deere, for Cat, and for the agriculture industry in general: Now that the El Nino weather pattern has gone away, and the Pacific Ocean is cooling again, it's likely that a La Nina weather pattern is not far off. And that could result in less rainfall in the continental United States, worse conditions for growing corn crops, and consequently, higher prices for the corn that farmers do grow.
The way UBS looks at it, corn prices are at about $4.10 right now. U.S. farmers only need corn prices to rise to about $4.34 per bushel to earn enough money to start buying farm equipment again. And by the time corn hits $5 a bushel, a bull thesis begins to emerge.
UBS predicts $5 average prices for corn this year, initially putting "a floor in ag equipment sales in 2017, and" then driving "growth in sales in 2018 if the prices are sustained throughout 2017." In turn, these higher corn prices produce wealthier farmers who begin buying enough Deere equipment to produce 8% operating profit margins, and $4.50 per share in net profit for Deere by 2018.
Now, is all of this enough good news to justify buying Deere stock today?
The most important thing: Valuation
Here's the thing: Over the past 12 months, Deere earned nearly $5 per share on weak corn prices. So if growing strength in corn prices is only going to produce $4.50 per share in profits, that's really not much of a bull thesis.
Basically, what UBS (and BMO) are telling investors is that Deere's profits will continue to weaken before getting any better. That largely tallies with consensus estimates of 1% average annual earnings growth at Deere over the next five years.
Against this backdrop, Deere stock that sells for 17 times earnings today looks even more expensive at 18 times UBS' optimistic prediction for 2018 earnings. Now granted, Deere does pay a nice dividend -- about 3% annually. But even so, the total return of 1% earnings growth plus 3% dividend yield seems a pretty meager harvest on an investment of 17 or 18 times earnings.
Much as I'd love to be able to tell you that BMO and UBS are right about Deere stock being a buy today, I fear they've jumped the gun. I think Deere stock still has farther to fall.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This morning, analysts from UBS agreed with BMO, upgrading Deere stock to an equivalent buy rating, and assigning a $94 price target. Reading from BMO's report, TheFly notes that Deere has lowered costs, output, and inventory, all in the interests of salvaging profits in a weak market for agricultural equipment. That's due in large part to the fact that since revenue peaked in 2013, Deere has slashed its operating costs by nearly 20% (according to data from S&P Global Market Intelligence ).
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With shares down 13% over the past year, investors in Deere & Company (NYSE: DE) stock haven't had a lot to cheer about lately -- until just this past week. This morning, analysts from UBS agreed with BMO, upgrading Deere stock to an equivalent buy rating, and assigning a $94 price target. In turn, these higher corn prices produce wealthier farmers who begin buying enough Deere equipment to produce 8% operating profit margins, and $4.50 per share in net profit for Deere by 2018.
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1: Deere's not caught in the headlights Deere stock has underperformed the rest of the stock market since at least 2011, reports TheFly.com . In turn, these higher corn prices produce wealthier farmers who begin buying enough Deere equipment to produce 8% operating profit margins, and $4.50 per share in net profit for Deere by 2018. The most important thing: Valuation Here's the thing: Over the past 12 months, Deere earned nearly $5 per share on weak corn prices.
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With shares down 13% over the past year, investors in Deere & Company (NYSE: DE) stock haven't had a lot to cheer about lately -- until just this past week. 1: Deere's not caught in the headlights Deere stock has underperformed the rest of the stock market since at least 2011, reports TheFly.com . Over the past two weeks, Deere stock has collected two separate upgrades, both of which advise investors to buy the stock.
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2016-05-24 00:00:00 UTC
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41 Trades To Make Before May Ends
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https://www.nasdaq.com/articles/41-trades-make-may-ends-2016-05-24
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
During these busy times, it pays to stay on top of the latest profit opportunities, and today's blog post should be a great place to start.
After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 41 big blue chips.
30 Stocks the Smart Money Just Bought or Dumped
Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
This Week's Ratings Changes:
To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool. You may get started here .
More From InvestorPlace
10 Top Stocks Every Retirement Portfolio Should Have
9 Low-Risk, High-Yield Dividend Stocks to Buy
7 A-Rated Small Caps to Pocket and Run With
The post 41 Trades To Make Before May Ends 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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After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 41 big blue chips. More From InvestorPlace 10 Top Stocks Every Retirement Portfolio Should Have 9 Low-Risk, High-Yield Dividend Stocks to Buy 7 A-Rated Small Caps to Pocket and Run With The post 41 Trades To Make Before May Ends appeared first on InvestorPlace . This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool.
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This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 41 big blue chips.
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This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool. More From InvestorPlace 10 Top Stocks Every Retirement Portfolio Should Have 9 Low-Risk, High-Yield Dividend Stocks to Buy 7 A-Rated Small Caps to Pocket and Run With The post 41 Trades To Make Before May Ends appeared first on InvestorPlace . After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 41 big blue chips.
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After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 41 big blue chips. This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool. More From InvestorPlace 10 Top Stocks Every Retirement Portfolio Should Have 9 Low-Risk, High-Yield Dividend Stocks to Buy 7 A-Rated Small Caps to Pocket and Run With The post 41 Trades To Make Before May Ends appeared first on InvestorPlace .
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2016-05-23 00:00:00 UTC
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Company News for May 23, 2016
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https://www.nasdaq.com/articles/company-news-for-may-23-2016-2016-05-23
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• Deere & Company's ( DE ) shares slumped 5.5% after reporting fiscal second quarter earnings of $1.56 per share, falling 23% year-over-year
• Shares of Campbell Soup Company ( CPB ) plunged 6.4% after posting fiscal third quarter net sales of $1,870 million, lower than the Zacks Consensus Estimate of $1,912 million
• Hibbett Sports, Inc's ( HIBB ) shares jumped 6.9% after announcing fiscal first quarter earnings of $1.22 per share, beating the Zacks Consensus Estimate of by 2 cents
• Shares of Ross Stores Inc. ( ROST ) declined 5.5% after reporting fiscal first quarter net sales of $3,089 million, missing the Zacks Consensus Estimate of $3,109 million
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 & CO (DE): Free Stock Analysis Report
CAMPBELL SOUP (CPB): Free Stock Analysis Report
HIBBET SPORTS (HIBB): Free Stock Analysis Report
ROSS STORES (ROST): 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 slumped 5.5% after reporting fiscal second quarter earnings of $1.56 per share, falling 23% year-over-year • Shares of Campbell Soup Company ( CPB ) plunged 6.4% after posting fiscal third quarter net sales of $1,870 million, lower than the Zacks Consensus Estimate of $1,912 million • Hibbett Sports, Inc's ( HIBB ) shares jumped 6.9% after announcing fiscal first quarter earnings of $1.22 per share, beating the Zacks Consensus Estimate of by 2 cents • Shares of Ross Stores Inc. ( ROST ) declined 5.5% after reporting fiscal first quarter net sales of $3,089 million, missing the Zacks Consensus Estimate of $3,109 million Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CAMPBELL SOUP (CPB): Free Stock Analysis Report HIBBET SPORTS (HIBB): Free Stock Analysis Report ROSS STORES (ROST): 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 slumped 5.5% after reporting fiscal second quarter earnings of $1.56 per share, falling 23% year-over-year • Shares of Campbell Soup Company ( CPB ) plunged 6.4% after posting fiscal third quarter net sales of $1,870 million, lower than the Zacks Consensus Estimate of $1,912 million • Hibbett Sports, Inc's ( HIBB ) shares jumped 6.9% after announcing fiscal first quarter earnings of $1.22 per share, beating the Zacks Consensus Estimate of by 2 cents • Shares of Ross Stores Inc. ( ROST ) declined 5.5% after reporting fiscal first quarter net sales of $3,089 million, missing the Zacks Consensus Estimate of $3,109 million Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CAMPBELL SOUP (CPB): Free Stock Analysis Report HIBBET SPORTS (HIBB): Free Stock Analysis Report ROSS STORES (ROST): 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 slumped 5.5% after reporting fiscal second quarter earnings of $1.56 per share, falling 23% year-over-year • Shares of Campbell Soup Company ( CPB ) plunged 6.4% after posting fiscal third quarter net sales of $1,870 million, lower than the Zacks Consensus Estimate of $1,912 million • Hibbett Sports, Inc's ( HIBB ) shares jumped 6.9% after announcing fiscal first quarter earnings of $1.22 per share, beating the Zacks Consensus Estimate of by 2 cents • Shares of Ross Stores Inc. ( ROST ) declined 5.5% after reporting fiscal first quarter net sales of $3,089 million, missing the Zacks Consensus Estimate of $3,109 million Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CAMPBELL SOUP (CPB): Free Stock Analysis Report HIBBET SPORTS (HIBB): Free Stock Analysis Report ROSS STORES (ROST): 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 slumped 5.5% after reporting fiscal second quarter earnings of $1.56 per share, falling 23% year-over-year • Shares of Campbell Soup Company ( CPB ) plunged 6.4% after posting fiscal third quarter net sales of $1,870 million, lower than the Zacks Consensus Estimate of $1,912 million • Hibbett Sports, Inc's ( HIBB ) shares jumped 6.9% after announcing fiscal first quarter earnings of $1.22 per share, beating the Zacks Consensus Estimate of by 2 cents • Shares of Ross Stores Inc. ( ROST ) declined 5.5% after reporting fiscal first quarter net sales of $3,089 million, missing the Zacks Consensus Estimate of $3,109 million Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CAMPBELL SOUP (CPB): Free Stock Analysis Report HIBBET SPORTS (HIBB): Free Stock Analysis Report ROSS STORES (ROST): 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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2016-05-23 00:00:00 UTC
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3 Big Charts for Monday: Monsanto Company (MON), Boeing Co (BA) and Deere & Company (DE)
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https://www.nasdaq.com/articles/3-big-charts-for-monday%3A-monsanto-company-mon-boeing-co-ba-and-deere-company-de-2016-05-23
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. equities are trading lower in the pre-open session early Monday morning as investors responded to some tensions between the United States and Japan concerning currency valuations. Specifically, the disagreement on whether or not the yen's recent moves have been "orderly" and whether that justifies intervention by Tokyo.
Other headlines include more hawkish comments from the Federal Reserve (Boston Fed President Eric Rosengren said recent economic data has been positive) and negative comments from Iran's deputy oil minister that it has no plans to join any production freeze agreement.
Stocks look vulnerable here, with the Dow Jones Industrial Average trading below its 50-day moving average last week as breadth continues to deteriorate. And it has been more than a year without a new record high in the market.
To be sure, there is a lot to worry about. For one, seasonality sucks ("Sell in May…"). We are also heading into what's likely to be the ugliest presidential election in the modern era - with the potential for a big status quo shakeup on things like trade, energy policy, immigration, health care and more.
30 Stocks the Smart Money Just Bought or Dumped
Oh, that's not all. China's credit bubble looks vulnerable. U.S. economic data has been uneven. The Federal Reserve has been making surprisingly hawkish noises over the past two weeks - an attempt, it seems, to prepare an unprepared and stimulus-addicted stock market for the possibility of as many as four rate hikes this year; vs. the futures market pricing in only a single hike. And oil's recent rally looks like a temporary reprieve now that the dollar is strengthening and the Canadian wildfires have died down.
As a result, keep an eye on these three stocks for possible signs of further market weakening:
Monsanto Company (NYSE:MON)
Watch for a big positive open in Monsanto Company (NYSE: MON ) shares on Monday after Bayer AG (ADR) (OTCMKTS: BAYRY ) announced on Sunday that it pursuing a $122-per-share offer for the company in a deal valued at $62 billion. The offer is all-cash and was made on May 10 when it represented a 37% premium to the currency share price. Bayer believes the deal will be accretive to earnings in the mid-single digits in the first full year after closing, ramping up to double-digits thereafter.
For its part, MON management announced on May 19 - before details of the deal were released - that they are analyzing the proposal. The company is set to release results on June 29 before the bell. Analysts are looking for earnings of $2.38 per share on revenues of $4.5 billion.
Boeing Co (NYSE:BA)
Boeing Co (NYSE: BA ) shares have dropped below their 200-day and 50-day moving averages, collapsing out of a two-month trading range on growing concerns about the profitability of the airline industry amid evidence of overcapacity problems. That's been a boost to the June $130 BA puts recommended to Edge Pro subscribers, up more than 25% since recommended on May 18. Barron's recently published a negative article on the stock as well, talking up the risks of a slowdown in orders .
The company will next report results on July 27 before the bell. Analysts are looking for earnings of $2.14 per share on revenues of $23.2 billion.
Deere & Company (NYSE:DE)
Deere & Company (NYSE: DE ) shares fell 5.5% on Friday despite reporting an earnings beat on better-than-expected equipment sales as investors focused on slowing new equipment pricing and higher credit loss offsets. Profits are down 30% over last year. Management also issued soft guidance that spooked investors as U.S. and Canada equipment sales fell 6% last quarter.
10 Top Stocks Every Retirement Portfolio Should Have
They now expect current-quarter revenue to drop 12% from last year, below expectations.
The company will next report results on Aug. 19 before the bell. Analysts are looking for earnings of $1.10 per share on revenues of $6 billion.
Anthony Mirhaydari is founder of theEdgeandEdge Proinvestment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
More From InvestorPlace
9 Low-Risk, High-Yield Dividend Stocks to Buy
7 A-Rated Small Caps to Pocket and Run With
The post 3 Big Charts for Monday: Monsanto Company (MON), Boeing Co (BA) and Deere & Company (DE) 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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We are also heading into what's likely to be the ugliest presidential election in the modern era - with the potential for a big status quo shakeup on things like trade, energy policy, immigration, health care and more. Bayer believes the deal will be accretive to earnings in the mid-single digits in the first full year after closing, ramping up to double-digits thereafter. Deere & Company (NYSE:DE) Deere & Company (NYSE: DE ) shares fell 5.5% on Friday despite reporting an earnings beat on better-than-expected equipment sales as investors focused on slowing new equipment pricing and higher credit loss offsets.
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As a result, keep an eye on these three stocks for possible signs of further market weakening: Monsanto Company (NYSE:MON) Watch for a big positive open in Monsanto Company (NYSE: MON ) shares on Monday after Bayer AG (ADR) (OTCMKTS: BAYRY ) announced on Sunday that it pursuing a $122-per-share offer for the company in a deal valued at $62 billion. Deere & Company (NYSE:DE) Deere & Company (NYSE: DE ) shares fell 5.5% on Friday despite reporting an earnings beat on better-than-expected equipment sales as investors focused on slowing new equipment pricing and higher credit loss offsets. More From InvestorPlace 9 Low-Risk, High-Yield Dividend Stocks to Buy 7 A-Rated Small Caps to Pocket and Run With The post 3 Big Charts for Monday: Monsanto Company (MON), Boeing Co (BA) and Deere & Company (DE) appeared first on InvestorPlace .
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As a result, keep an eye on these three stocks for possible signs of further market weakening: Monsanto Company (NYSE:MON) Watch for a big positive open in Monsanto Company (NYSE: MON ) shares on Monday after Bayer AG (ADR) (OTCMKTS: BAYRY ) announced on Sunday that it pursuing a $122-per-share offer for the company in a deal valued at $62 billion. Deere & Company (NYSE:DE) Deere & Company (NYSE: DE ) shares fell 5.5% on Friday despite reporting an earnings beat on better-than-expected equipment sales as investors focused on slowing new equipment pricing and higher credit loss offsets. More From InvestorPlace 9 Low-Risk, High-Yield Dividend Stocks to Buy 7 A-Rated Small Caps to Pocket and Run With The post 3 Big Charts for Monday: Monsanto Company (MON), Boeing Co (BA) and Deere & Company (DE) appeared first on InvestorPlace .
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As a result, keep an eye on these three stocks for possible signs of further market weakening: Monsanto Company (NYSE:MON) Watch for a big positive open in Monsanto Company (NYSE: MON ) shares on Monday after Bayer AG (ADR) (OTCMKTS: BAYRY ) announced on Sunday that it pursuing a $122-per-share offer for the company in a deal valued at $62 billion. Deere & Company (NYSE:DE) Deere & Company (NYSE: DE ) shares fell 5.5% on Friday despite reporting an earnings beat on better-than-expected equipment sales as investors focused on slowing new equipment pricing and higher credit loss offsets. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equities are trading lower in the pre-open session early Monday morning as investors responded to some tensions between the United States and Japan concerning currency valuations.
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065c55a0-93f9-459e-b075-e78849ad5a1a
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722642.0
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2016-05-20 00:00:00 UTC
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Deere & Co. Breaks Below 200-Day Moving Average - Notable for DE
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DE
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https://www.nasdaq.com/articles/deere-co-breaks-below-200-day-moving-average-notable-de-2016-05-20
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nan
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nan
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.68, changing hands as low as $78.09 per share. Deere & Co. shares are currently trading off about 5% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $77.90.
DE makes up 20.94% of the First Trust Indxx Global Agriculture ETF (Symbol: FTAG)
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.68, changing hands as low as $78.09 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $77.90. DE makes up 20.94% of the First Trust Indxx Global Agriculture ETF (Symbol: FTAG) Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.68, changing hands as low as $78.09 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $77.90. DE makes up 20.94% of the First Trust Indxx Global Agriculture ETF (Symbol: FTAG) Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.68, changing hands as low as $78.09 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $77.90. DE makes up 20.94% of the First Trust Indxx Global Agriculture ETF (Symbol: FTAG) Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $79.68, changing hands as low as $78.09 per share. Deere & Co. shares are currently trading off about 5% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $77.90.
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fc128130-4988-4f31-bd68-aac95ed5cdc5
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722643.0
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2016-05-20 00:00:00 UTC
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3 Stocks to Watch on Friday: Applied Materials, Inc. (AMAT), Deere & Company (DE) and Ross Stores, Inc. (ROST)
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DE
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https://www.nasdaq.com/articles/3-stocks-to-watch-on-friday%3A-applied-materials-inc.-amat-deere-company-de-and-ross-stores
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was a rough Thursday for U.S. stocks as a stronger dollar and lower oil prices hurt the market. The S&P 500 declined 0.4%, while the Dow Jones Industrial Average fell 0.5% on the day.
Applied Materials, Inc. (NASDAQ: AMAT ) and Ross Stores, Inc. (NASDAQ: ROST ) both were on the move - albeit in different directions - after quarterly results were released Thursday. Meanwhile, Deere & Company (NYSE: DE ) kicked off Friday with a report of its own.
Here's what investors should know about each of these companies in Friday's trade:
Applied Materials, Inc. (AMAT)
AMAT shares should start Friday with a bang thanks to a beat on both lines.
Applied Materials earned adjusted fiscal Q2 earnings of 34 cents per share, topping estimates by two pennies, and they did so on revenues of $2.45 billion, which was just enough to get over a bar of $2.43 billion.
30 Stocks the Smart Money Just Bought or Dumped
AMAT, which provides equipment and software to the semiconductor and solar industries, saw orders surge 37% to $3.45 billion in the quarter.
But perhaps the most bullish piece of information was Applied Materials' Q3 outlook, which included earnings guidance of 46 to 50 cents per share. Analysts were looking for just 36 cents.
AMAT shares are surging 9% in Friday's premarket trade in response.
Deere & Company (DE)
DE stock likely will slump at Friday's open after revealing its fiscal Q2 results.
Earnings declined 28% to $495.4 million for the second quarter, though the per-share figure of $1.56 managed to get past Zacks estimates for $1.66. Revenues also declined, by 4% to $7.11 billion, to beat Zacks' expectations as well.
What had investors troubled was Deere's outlook for the coming quarter and year. Deere sees equipment sales declining 12% year-over-year for the third quarter, and the company lowered its full-year earnings outlook from $1.4 billion to $1.2 billion.
Friday's open will cut into what has been a Street-beating year for DE shares so far, with Deere up 8% year-to-date.
Ross Stores, Inc. (ROST)
Lastly, Ross Stores will suffer a setback in what has so far been a sturdy 2016 after its first-quarter earnings report.
Revenues of $3.09 billion came in shy of Wall Street expectations for $3.12 billion, and earnings of 73 cents per share were merely in line. That came on comparable-store sales growth of just 2%, while analysts were looking for 2.4%.
Operating margins also declined to 15.4%, but CEO Barbara Rentler said that was "slightly above plan, mainly due to higher merchandise margins that partially offset the expected impact from the unfavorable timing of packaway-related costs."
Gap (GPS) Stock: The Gap Is Shrinking, But for the Better
The result? ROST shares are dipping by more than 6% in Friday's premarket trading . Should those losses stick during regular hours, Ross Stores' year-to-date gains will be wiped out and then some.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
More From InvestorPlace
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The post 3 Stocks to Watch on Friday: Applied Materials, Inc. (AMAT), Deere & Company (DE) and Ross Stores, Inc. (ROST) 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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30 Stocks the Smart Money Just Bought or Dumped AMAT, which provides equipment and software to the semiconductor and solar industries, saw orders surge 37% to $3.45 billion in the quarter. But perhaps the most bullish piece of information was Applied Materials' Q3 outlook, which included earnings guidance of 46 to 50 cents per share. Earnings declined 28% to $495.4 million for the second quarter, though the per-share figure of $1.56 managed to get past Zacks estimates for $1.66.
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Here's what investors should know about each of these companies in Friday's trade: Applied Materials, Inc. (AMAT) AMAT shares should start Friday with a bang thanks to a beat on both lines. More From InvestorPlace The 10 Best Dividend Stocks in Tech 9 Hot Stocks That Could Jump 30% and Still Be Cheap The post 3 Stocks to Watch on Friday: Applied Materials, Inc. (AMAT), Deere & Company (DE) and Ross Stores, Inc. (ROST) appeared first on InvestorPlace . The S&P 500 declined 0.4%, while the Dow Jones Industrial Average fell 0.5% on the day.
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Here's what investors should know about each of these companies in Friday's trade: Applied Materials, Inc. (AMAT) AMAT shares should start Friday with a bang thanks to a beat on both lines. More From InvestorPlace The 10 Best Dividend Stocks in Tech 9 Hot Stocks That Could Jump 30% and Still Be Cheap The post 3 Stocks to Watch on Friday: Applied Materials, Inc. (AMAT), Deere & Company (DE) and Ross Stores, Inc. (ROST) appeared first on InvestorPlace . The S&P 500 declined 0.4%, while the Dow Jones Industrial Average fell 0.5% on the day.
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Here's what investors should know about each of these companies in Friday's trade: Applied Materials, Inc. (AMAT) AMAT shares should start Friday with a bang thanks to a beat on both lines. Deere sees equipment sales declining 12% year-over-year for the third quarter, and the company lowered its full-year earnings outlook from $1.4 billion to $1.2 billion. Friday's open will cut into what has been a Street-beating year for DE shares so far, with Deere up 8% year-to-date.
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26f7e962-bc6b-4f9f-a7b6-e430a65422b8
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722644.0
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2016-05-20 00:00:00 UTC
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Deere (DE) Beats on Q2 Earnings & Sales, Tweaks 2016 View
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DE
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https://www.nasdaq.com/articles/deere-de-beats-on-q2-earnings-sales-tweaks-2016-view-2016-05-20
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nan
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nan
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Deere & Company 's DE second-quarter fiscal 2016 (ended Apr 30, 2016) earnings declined around 23% year over year to $1.56 per share owing to a downturn in the global farm economy and weakness in the construction equipment sector. Earnings, however, topped the Zacks Consensus Estimate of $1.46.
Operational Update
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $7.11 billion, down roughly 4% year over year. Revenues comfortably beat the Zacks Consensus Estimate of $6.64 billion. Region-wise, equipment net sales were down 6% in the U.S. and Canada, and 1% in the rest of the world.
Cost of sales in the quarter decreased 2.9% year over year to $5.53 billion. Gross profit in the quarter came in at $1.58 million, down 7.5% year over year. Selling, administrative and general expenses dropped 3.4% to $592.9 million. Operating profit declined around 10.7% year over year to $860.8 million.
Operating income from equipment operations tumbled 17% year over year to $688 million due to the impact of lower shipment volumes, less favorable product mix and unfavorable currency effects, partially offset by lower production costs, reduced selling, administrative and general expenses, and price realization.
Segment Performance
The Agriculture & Turf segment's sales remained flat year over year at $5.7 billion. Revenues were impacted by the unfavorable effects of foreign currency translation, partially offset by price realization. Operating profit at the segment declined 4% year over year to $614 million as lower shipment volumes, less favorable product mix and unfavorable currency effects were partly offset by price realization, lower selling, administrative and general expenses, and reduced production costs.
Construction & Forestry sales went down 16% year over year to $1.37 billion, impacted by lower shipment volumes and higher sales-incentive costs. Operating profit at the segment declined significantly year over year to $74 million.
Net revenues at Deere's Financial Services division totaled $651 million in the reported quarter, flat year over year. The segment's operating profit was $160 million, compared with $265 million in the prior-year quarter. Net income at the segment was $102.6 million compared with $169.8 million in the year-ago quarter. This decline can be attributed to higher losses on residual values, less favorable financing spreads and a higher provision for credit losses.
Financial Update
Deere reported cash and cash equivalents of $4.13 billion at the end of second-quarter fiscal 2016 compared with $4.36 billion at the end of the prior-year quarter. The company reported cash used in operations of $312.4 million for the period of six months ended Apr 30, 2016 compared with cash usage of $154.7 million in the comparable year-ago period. As of second-quarter end, long-term borrowings totaled $24.6 billion, compared with $23.6 billion in the prior-year quarter.
Looking Ahead
Deere revised its outlook for fiscal 2016. The company reduced its fiscal-year forecast for net income to $1.2 billion from $1.3 billion due to ongoing market pressures. It projects total equipment sales to decline 9% year over year in fiscal 2016. Sales are also likely to deteriorate about 12% from the year-ago quarter in the third quarter of fiscal 2016. The projection includes a negative currency-translation effect of about 2% for the full year and 1% for the third quarter.
Segment-wise, Deere expects Agriculture and Turf equipment sales decline of 8% in fiscal 2016, including an unfavorable currency-translation impact of about 2%. Industry sales for agricultural equipment in the U.S. and Canada are expected to be down 15%−20% in fiscal 2016 owing to low commodity prices and stagnant farm income.
In the EU28, sales are projected to be flat to down 5% due to low commodity prices and farm income, including potential pressure on the dairy sector. In South America, industry sales of tractors and combines are expected to decline 15%−20% year over year due to economic uncertainty in Brazil.
Sales in Asia are projected to be flat to down modestly, largely because of the weakness in China. Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, gaining from new products and general economic growth.
The company foresees global sales for Construction & Forestry equipment to be down about 13% in fiscal 2016, including an unfavorable currency-translation effect of about 1%. The decline reflects the impact of soft conditions in the North American energy sector. In forestry, global sales are expected to be down 5%−10% from year-ago levels. The outlook for net income from Financial Services has been slashed to $480 million from $525 million for fiscal 2016. The outlook reflects less-favorable financing spreads, higher losses on lease residual values and an increased provision for credit losses.
Our View
Owing to the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Global trends based on population growth and rising living standards remain intact, and are largely unaffected by periodic swings in farming economy.
However, declining crop prices, such as those of corn and soybean, will affect farm income. This will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere. Moreover, the sluggish energy sector is a matter of concern.
Zacks Rank
At present, Deere has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are Altra Industrial Motion Corp. AIMC , Alamo Group, Inc. ALG and Alarm.Com Holdings, Inc. ALRM . All these stocks carry a Zacks Rank #2 (Buy).
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DEERE & CO (DE): Free Stock Analysis Report
ALAMO GROUP INC (ALG): Free Stock Analysis Report
ALTRA INDUS MOT (AIMC): Free Stock Analysis Report
ALARM.COM HLDGS (ALRM): 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 second-quarter fiscal 2016 (ended Apr 30, 2016) earnings declined around 23% year over year to $1.56 per share owing to a downturn in the global farm economy and weakness in the construction equipment sector. Cost of sales in the quarter decreased 2.9% year over year to $5.53 billion. Operating profit declined around 10.7% year over year to $860.8 million.
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Operating profit at the segment declined 4% year over year to $614 million as lower shipment volumes, less favorable product mix and unfavorable currency effects were partly offset by price realization, lower selling, administrative and general expenses, and reduced production costs. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report ALTRA INDUS MOT (AIMC): Free Stock Analysis Report ALARM.COM HLDGS (ALRM): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company 's DE second-quarter fiscal 2016 (ended Apr 30, 2016) earnings declined around 23% year over year to $1.56 per share owing to a downturn in the global farm economy and weakness in the construction equipment sector.
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Operating profit at the segment declined 4% year over year to $614 million as lower shipment volumes, less favorable product mix and unfavorable currency effects were partly offset by price realization, lower selling, administrative and general expenses, and reduced production costs. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report ALTRA INDUS MOT (AIMC): Free Stock Analysis Report ALARM.COM HLDGS (ALRM): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company 's DE second-quarter fiscal 2016 (ended Apr 30, 2016) earnings declined around 23% year over year to $1.56 per share owing to a downturn in the global farm economy and weakness in the construction equipment sector.
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It projects total equipment sales to decline 9% year over year in fiscal 2016. Segment-wise, Deere expects Agriculture and Turf equipment sales decline of 8% in fiscal 2016, including an unfavorable currency-translation impact of about 2%. Deere & Company 's DE second-quarter fiscal 2016 (ended Apr 30, 2016) earnings declined around 23% year over year to $1.56 per share owing to a downturn in the global farm economy and weakness in the construction equipment sector.
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d00b1e15-c38b-40a6-b866-f118d8c65205
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722645.0
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2016-05-20 00:00:00 UTC
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Deere & Company (DE) Q2 Earnings and Revenues Beat
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DE
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https://www.nasdaq.com/articles/deere-company-de-q2-earnings-and-revenues-beat-2016-05-20
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nan
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nan
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Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $25 billion. It also produces a variety of commercial and consumer equipment; and a broad range of construction and forestry equipment. Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices continues pressure U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. In the long-term, Deere expects to be solidly profitable driven by increased global demand for food, shelter and infrastructure.
Investors have thus been eagerly awaiting the company's latest earnings report. Let's have a quick look at the Illinois-based company's second-quarter fiscal 2016 earnings release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Deere for the second quarter has been revised downward over the past week and month. Coming to the earnings surprise, Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 23.00%.
Earnings
Deere posted earnings of $1.56 per share in the second quarter, beating the Zacks Consensus Estimate of $1.46. However, earnings plunged roughly 23% year over year due to global farm recession and weak construction-equipment markets.
Revenues
Deere reported second quarter equipment revenues of $7.107 billion, way ahead of the Zacks Consensus Estimate of $6.64 billion.
Developments to Note
Deere expects total equipment sales to decline 9% year over year in fiscal 2016 and to be down about 12% in the third quarter of fiscal 2016 compared with year-ago periods. The projection includes a negative currency-translation effect of about 2% for the full year and 1% for the third quarter. For fiscal 2016, net income attributable to Deere & Company is anticipated to be about $1.2 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #3 (Hold) but that could change following Deere's earnings report which was just released.
Market Reaction
Deere shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Deere earnings report later!
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 >>
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 & CO (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices continues pressure U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. In the long-term, Deere expects to be solidly profitable driven by increased global demand for food, shelter and infrastructure.
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Earnings Deere posted earnings of $1.56 per share in the second quarter, beating the Zacks Consensus Estimate of $1.46. Revenues Deere reported second quarter equipment revenues of $7.107 billion, way ahead of the Zacks Consensus Estimate of $6.64 billion. Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $25 billion.
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Earnings Deere posted earnings of $1.56 per share in the second quarter, beating the Zacks Consensus Estimate of $1.46. Revenues Deere reported second quarter equipment revenues of $7.107 billion, way ahead of the Zacks Consensus Estimate of $6.64 billion. Zacks Rank Currently, Deere has a Zacks Rank #3 (Hold) but that could change following Deere's earnings report which was just released.
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Revenues Deere reported second quarter equipment revenues of $7.107 billion, way ahead of the Zacks Consensus Estimate of $6.64 billion. Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $25 billion. Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
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722646.0
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2016-05-20 00:00:00 UTC
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Earnings Reaction History: Deere & Company, 40.0% Follow-Through Indicator, 2.8% Sensitive
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DE
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https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-400-follow-through-indicator-28-sensitive-2016-05
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nan
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nan
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Expected Earnings Release: 05/20/2016, Premarket
Avg. Extended-Hours Dollar Volume: $10,188,711
Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 20%
Average next regular session additional gain: 1.5%
Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 1.5%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 60%
Average next regular session additional loss: 1.7%
Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 1.5% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 1.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.7% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close.
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Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 1.5% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 1.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.7% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close.
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Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 1.5% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 1.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.7% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close. Extended-Hours Dollar Volume: $10,188,711 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: $10,188,711 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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de257c78-72fe-4263-9045-e1966181aaaf
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722647.0
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2016-05-20 00:00:00 UTC
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Stocks Rebound Into the Green for 2016
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DE
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https://www.nasdaq.com/articles/stocks-rebound-into-the-green-for-2016-2016-05-20
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. equities moved higher on Friday as bargain hunters descended, pushing the large-cap averages back into positive territory for the year to date. There was no major catalyst for the move. And trading was quiet. After a busy couple of days focused on the Federal Reserve and the rising odds of a June interest rate hike, traders enjoyed the reprieve.
In the end, the Dow Jones Industrial Average gained 0.4%, the S&P 500 wafted up 0.6%, the Nasdaq Composite gained 1.2% and the Russell 2000 ended the day 1.6% higher. Treasury bonds were little changed, the dollar was mixed, gold was down 0.2%, and oil declined slightly losing 1% to close at $47.67.
Technology stocks led the way with a 1.2% gain, with Qualcomm, Inc. (NASDAQ: QCOM ) up 3.3%. Consumer staples were the laggards down 0.4%. Applied Materials, Inc. (NASDAQ: AMAT ) surged 13.8% on an earnings beat and guidance raise. Gap Inc (NYSE: GPS ) rose 4.2% after reporting in-line results and focusing on cutting expenses in a difficult retail environment.
8 Stocks That Are Disgustingly Expensive Right Now
Staples stocks were the laggards, falling 0.4%. Ross Stores, Inc. (NASDAQ: ROST ) fell 5.5% on in-line earnings by comp-store sales growth that was below the consensus estimate. Deere & Company (NYSE: DE ) fell 5.5% despite an earnings beat on better-than-expected equipment sales as investors focused on slowing new equipment pricing and higher credit loss offsets. Profits are down 30% over last year.
There was some focus on the G7 meeting of finance ministers in Japan, with particular attention on any possible comments on Japan's aggressive management of the yen. A senior U.S. Treasury official said there has been no disorderly moves in the Japanese currency that would justify intervention at the moment. The United States had recently placed Japan - along with China, Korea, Taiwan and Germany - on a new "Monitoring List" as part of its semi-annual currency report.
Watch for more on a possibly more aggressive pushback by the U.S. Treasury on mercantilist currency manipulation tendencies when U.S. Treasury Secretary Jack Lew meets his Japanese counterpart on Saturday.
For now, stocks remain in stasis: mired in a tight three-month trading range capping a three-year trading range that started when the Dow first closed above the 18,000 level just before Christmas 2014.
5 Reasons to Be Bullish on Tesla Motors Inc (TSLA)
Breadth continues to deteriorate, however, in a sign of vulnerability as the bulls rely on a narrowing list of stocks to hold the major averages aloft.
As a result, I continue to focus on defensive/short-side positions, such as the June $130 puts on Boeing Co (NYSE: BA ) that are up more than 25% for Edge Pro subscribers.
Anthony Mirhaydari is founder of theEdgeandEdge Proinvestment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
More From InvestorPlace
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The post Stocks Rebound Into the Green for 2016 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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After a busy couple of days focused on the Federal Reserve and the rising odds of a June interest rate hike, traders enjoyed the reprieve. 5 Reasons to Be Bullish on Tesla Motors Inc (TSLA) Breadth continues to deteriorate, however, in a sign of vulnerability as the bulls rely on a narrowing list of stocks to hold the major averages aloft. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equities moved higher on Friday as bargain hunters descended, pushing the large-cap averages back into positive territory for the year to date.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equities moved higher on Friday as bargain hunters descended, pushing the large-cap averages back into positive territory for the year to date. Deere & Company (NYSE: DE ) fell 5.5% despite an earnings beat on better-than-expected equipment sales as investors focused on slowing new equipment pricing and higher credit loss offsets. After a busy couple of days focused on the Federal Reserve and the rising odds of a June interest rate hike, traders enjoyed the reprieve.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equities moved higher on Friday as bargain hunters descended, pushing the large-cap averages back into positive territory for the year to date. After a busy couple of days focused on the Federal Reserve and the rising odds of a June interest rate hike, traders enjoyed the reprieve. In the end, the Dow Jones Industrial Average gained 0.4%, the S&P 500 wafted up 0.6%, the Nasdaq Composite gained 1.2% and the Russell 2000 ended the day 1.6% higher.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equities moved higher on Friday as bargain hunters descended, pushing the large-cap averages back into positive territory for the year to date. Deere & Company (NYSE: DE ) fell 5.5% despite an earnings beat on better-than-expected equipment sales as investors focused on slowing new equipment pricing and higher credit loss offsets. After a busy couple of days focused on the Federal Reserve and the rising odds of a June interest rate hike, traders enjoyed the reprieve.
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e77a1f5e-6f36-4350-865c-506dfb53e07e
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722648.0
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2016-05-20 00:00:00 UTC
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Why Deere, Shoe Carnival, and Quality Systems Slumped Today
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DE
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https://www.nasdaq.com/articles/why-deere-shoe-carnival-and-quality-systems-slumped-today-2016-05-20
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nan
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nan
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Image source: Deere.
The stock market finished on an upbeat note Friday, and the Dow and S&P 500 both recovered some of their losses from Thursday. Investors apparently had a change of heart in their views about the future of the U.S. economy, believing that its long period of outperformance could potentially continue even if the Federal Reserve begins to start tightening its monetary policy more aggressively throughout the remainder of 2016 and beyond. Crude oil prices eased downward slightly but remain within a short distance of the $50 per barrel mark, and the dollar kept bouncing back after suffering for much of the past few months. Even though stock market indexes were higher, several stocks lost ground, and Deere (NYSE: DE) , Shoe Carnival (NASDAQ: SCVL) , and Quality Systems (NASDAQ: QSII) were among the hardest-hit stocks in the market Friday.
Deere fell more than 5% in the wake of its fiscal second-quarter financial report. The maker of farm equipment was able to surpass analysts' estimates by a penny per share on the earnings front, but particularly weak sales in the construction and forestry segment weighed on what otherwise would have been roughly flat performance from the agricultural industry. More importantly, Deere reduced its guidance for full-year net income, because pressure from construction and forestry combined with lower net income from Deere's financial services segment to hold back the overall company's future prospects. Until Deere's target industries start to bounce back more aggressively, it will be hard for the equipment maker to sustain long-term gains in its stock price.
Shoe Carnival dropped 9% after releasing its first-quarter financial report Thursday afternoon. Net sales were up about 3% to hit a new record for a first quarter, and earnings rose 8% to $0.56 per share, setting a record as well. Comparable store sales were up 2.7%, marking the seventh quarter in a row of rising comps, but investors didn't seem satisfied with Shoe Carnival's reiterated guidance for the full year. Given comparable-store sales growth of just 1% to 3% and earnings growth of between 9% and 14%, Shoe Carnival might not offer quite the same level of growth potential that investors have traditionally wanted to see. To win back shareholders, the shoe retailer will need to redouble its efforts to get growth accelerating again.
Finally, Quality Systems declined 8%. The medical software and services provider said that revenue inched downward by less than 1% from year-ago levels, and adjusted net income took about a $1 million hit to drop to $11.5 million for the quarter. CEO Rusty Frantz tried to focus on the long run, noting that "these results are in line with the preliminary results we announced on our Business Strategy Update conference call" back in late April. Guidance for the 2017 fiscal year was slightly less than investors had hoped, as Quality Systems thinks it will have sales of $508 million to $522 million. Yet adjusted earnings of $0.78 to $0.86 per share would be roughly in line with projections, and so if Quality Systems can deliver on its guidance, then shareholders might end up happy in the long run.
Something big just happened
I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was the best performing in the U.S. as reported by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations. Together, they've tripled the stock market's return over the last 13 years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.
Click here to be among the first people to hear about David and Tom's newest stock recommendations.
*"Look Who's on Top Now" appeared in The Wall Street Journal in Aug. 2013, which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors apparently had a change of heart in their views about the future of the U.S. economy, believing that its long period of outperformance could potentially continue even if the Federal Reserve begins to start tightening its monetary policy more aggressively throughout the remainder of 2016 and beyond. Image source: Deere. Crude oil prices eased downward slightly but remain within a short distance of the $50 per barrel mark, and the dollar kept bouncing back after suffering for much of the past few months.
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More importantly, Deere reduced its guidance for full-year net income, because pressure from construction and forestry combined with lower net income from Deere's financial services segment to hold back the overall company's future prospects. The medical software and services provider said that revenue inched downward by less than 1% from year-ago levels, and adjusted net income took about a $1 million hit to drop to $11.5 million for the quarter. Motley Fool co-founder David Gardner (whose growth-stock newsletter was the best performing in the U.S. as reported by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations.
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Even though stock market indexes were higher, several stocks lost ground, and Deere (NYSE: DE) , Shoe Carnival (NASDAQ: SCVL) , and Quality Systems (NASDAQ: QSII) were among the hardest-hit stocks in the market Friday. More importantly, Deere reduced its guidance for full-year net income, because pressure from construction and forestry combined with lower net income from Deere's financial services segment to hold back the overall company's future prospects. Motley Fool co-founder David Gardner (whose growth-stock newsletter was the best performing in the U.S. as reported by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations.
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Image source: Deere. Investors apparently had a change of heart in their views about the future of the U.S. economy, believing that its long period of outperformance could potentially continue even if the Federal Reserve begins to start tightening its monetary policy more aggressively throughout the remainder of 2016 and beyond. Crude oil prices eased downward slightly but remain within a short distance of the $50 per barrel mark, and the dollar kept bouncing back after suffering for much of the past few months.
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0297563f-a3c3-46ee-8391-c0a4e3fded86
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722649.0
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2016-05-20 00:00:00 UTC
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DE Crosses Above 3% Yield Territory
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DE
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https://www.nasdaq.com/articles/de-crosses-above-3-yield-territory-2016-05-20
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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 3% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $77.71 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 3% 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 3% annual yield.
According to the ETF Finder at ETF Channel, DE makes up 20.94% of the First Trust Indxx Global Agriculture ETF (Symbol: FTAG) which is trading higher by about 1% 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 3% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $77.71 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 3% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $77.71 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 3% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $77.71 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 3% mark based on its quarterly dividend (annualized to $2.40), with the stock changing hands as low as $77.71 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 3% would appear considerably attractive if that yield is sustainable. According to the ETF Finder at ETF Channel, DE makes up 20.94% of the First Trust Indxx Global Agriculture ETF (Symbol: FTAG) which is trading higher by about 1% on the day Friday.
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2877cb5b-60bb-4842-ae2a-442098ddd914
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722650.0
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2016-05-19 00:00:00 UTC
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Noteworthy Thursday Option Activity: EXP, RTEC, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-exp-rtec-de-2016-05-19
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Eagle Materials Inc (Symbol: EXP), where a total volume of 2,706 contracts has been traded thus far today, a contract volume which is representative of approximately 270,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 54.2% of EXP's average daily trading volume over the past month, of 499,060 shares. Especially high volume was seen for the $72.50 strike put option expiring June 17, 2016 , with 1,255 contracts trading so far today, representing approximately 125,500 underlying shares of EXP. Below is a chart showing EXP's trailing twelve month trading history, with the $72.50 strike highlighted in orange:
Rudolph Technologies, Inc. (Symbol: RTEC) saw options trading volume of 1,500 contracts, representing approximately 150,000 underlying shares or approximately 52.7% of RTEC's average daily trading volume over the past month, of 284,845 shares. Especially high volume was seen for the $12.50 strike put option expiring June 17, 2016 , with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of RTEC. Below is a chart showing RTEC's trailing twelve month trading history, with the $12.50 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 13,564 contracts, representing approximately 1.4 million underlying shares or approximately 52.2% of DE's average daily trading volume over the past month, of 2.6 million shares. Particularly high volume was seen for the $86 strike call option expiring June 10, 2016 , with 3,058 contracts trading so far today, representing approximately 305,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $86 strike highlighted in orange:
For the various different available expirations for EXP options , RTEC options , or DE options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $72.50 strike put option expiring June 17, 2016 , with 1,255 contracts trading so far today, representing approximately 125,500 underlying shares of EXP. Especially high volume was seen for the $12.50 strike put option expiring June 17, 2016 , with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of RTEC. Particularly high volume was seen for the $86 strike call option expiring June 10, 2016 , with 3,058 contracts trading so far today, representing approximately 305,800 underlying shares of DE.
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Especially high volume was seen for the $72.50 strike put option expiring June 17, 2016 , with 1,255 contracts trading so far today, representing approximately 125,500 underlying shares of EXP. Below is a chart showing EXP's trailing twelve month trading history, with the $72.50 strike highlighted in orange: Rudolph Technologies, Inc. (Symbol: RTEC) saw options trading volume of 1,500 contracts, representing approximately 150,000 underlying shares or approximately 52.7% of RTEC's average daily trading volume over the past month, of 284,845 shares. Below is a chart showing RTEC's trailing twelve month trading history, with the $12.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 13,564 contracts, representing approximately 1.4 million underlying shares or approximately 52.2% of DE's average daily trading volume over the past month, of 2.6 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Eagle Materials Inc (Symbol: EXP), where a total volume of 2,706 contracts has been traded thus far today, a contract volume which is representative of approximately 270,600 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing EXP's trailing twelve month trading history, with the $72.50 strike highlighted in orange: Rudolph Technologies, Inc. (Symbol: RTEC) saw options trading volume of 1,500 contracts, representing approximately 150,000 underlying shares or approximately 52.7% of RTEC's average daily trading volume over the past month, of 284,845 shares. Below is a chart showing RTEC's trailing twelve month trading history, with the $12.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 13,564 contracts, representing approximately 1.4 million underlying shares or approximately 52.2% of DE's average daily trading volume over the past month, of 2.6 million shares.
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Below is a chart showing EXP's trailing twelve month trading history, with the $72.50 strike highlighted in orange: Rudolph Technologies, Inc. (Symbol: RTEC) saw options trading volume of 1,500 contracts, representing approximately 150,000 underlying shares or approximately 52.7% of RTEC's average daily trading volume over the past month, of 284,845 shares. Especially high volume was seen for the $12.50 strike put option expiring June 17, 2016 , with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of RTEC. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Eagle Materials Inc (Symbol: EXP), where a total volume of 2,706 contracts has been traded thus far today, a contract volume which is representative of approximately 270,600 underlying shares (given that every 1 contract represents 100 underlying shares).
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dd0d0b1b-4258-46a8-87c0-c689919d626d
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722651.0
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2016-05-19 00:00:00 UTC
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Pre-Market Earnings Report for May 20, 2016 : DE, CPB, FL, BKE, HIBB, DXLG, GMAN
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-may-20-2016-de-cpb-fl-bke-hibb-dxlg-gman-2016-05-19
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nan
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nan
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The following companies are expected to report earnings prior to market open on 05/20/2016. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending April 30, 2016. The farm machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.46. This value represents a 28.08% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 12.68%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for DE is 20.29 vs. an industry ratio of 12.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Campbell Soup Company ( CPB ) is reporting for the quarter ending April 30, 2016. The food company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.65. This value represents a 4.84% increase compared to the same quarter last year. In the past year CPB has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for CPB is 21.44 vs. an industry ratio of 2.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Foot Locker, Inc. ( FL ) is reporting for the quarter ending April 30, 2016. The retail (shoe) company's consensus earnings per share forecast from the 13 analysts that follow the stock is $1.40. This value represents a 8.53% increase compared to the same quarter last year. In the past year FL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 3.57%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for FL is 12.03 vs. an industry ratio of 3.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Buckle, Inc. ( BKE ) is reporting for the quarter ending April 30, 2016. The retail (shoe) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.54. This value represents a 22.86% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for BKE is 8.32 vs. an industry ratio of 3.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Hibbett Sports, Inc. ( HIBB ) is reporting for the quarter ending April 30, 2016. The retail company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.20. This value represents a 10.09% increase compared to the same quarter last year. HIBB missed the consensus earnings per share in the 2nd calendar quarter of 2015 by -4.39%. The "days to cover" for this stock exceeds 17 days. Zacks Investment Research reports that the 2017 Price to Earnings ratio for HIBB is 10.40 vs. an industry ratio of -35.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Destination XL Group, Inc. ( DXLG ) is reporting for the quarter ending April 30, 2016. The retail (shoe) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.01. This value represents a no change for the same quarter last year. In the past year DXLG has met analyst expectations once and beat the expectations the other three quarters. The "days to cover" for this stock exceeds 44 days. Zacks Investment Research reports that the 2017 Price to Earnings ratio for DXLG is -463.00 vs. an industry ratio of 3.80.
Gordmans Stores, Inc. ( GMAN ) is reporting for the quarter ending April 30, 2016. The discount retail company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.10. This value represents a 600.00% decrease compared to the same quarter last year. GMAN missed the consensus earnings per share in the 4th calendar quarter of 2015 by -7.69%. The "days to cover" for this stock exceeds 98 days. Zacks Investment Research reports that the 2017 Price to Earnings ratio for GMAN is -6.45 vs. an industry ratio of 30.50.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 April 30, 2016. This value represents a 28.08% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2016 Price to Earnings ratio for DE is 20.29 vs. an industry ratio of 12.70, 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 April 30, 2016. This value represents a 28.08% decrease compared to the same quarter last year.
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Zacks Investment Research reports that the 2016 Price to Earnings ratio for DE is 20.29 vs. an industry ratio of 12.70, 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 April 30, 2016. This value represents a 28.08% decrease compared to the same quarter last year.
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In the past year DE has beat the expectations every quarter. Deere & Company ( DE ) is reporting for the quarter ending April 30, 2016. This value represents a 28.08% decrease compared to the same quarter last year.
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0d5280b5-eb88-4a4a-a42b-d9cbe51729db
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722652.0
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2016-05-17 00:00:00 UTC
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Deere (DE) to Report Q2 Earnings: What's in the Cards?
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DE
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https://www.nasdaq.com/articles/deere-de-to-report-q2-earnings%3A-whats-in-the-cards-2016-05-17
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nan
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Deere & CompanyDE is scheduled to report second-quarter fiscal 2016 results on May 20. The company posted a year-over-year decline in both earnings and sales in first-quarter fiscal 2016. Let's see how things are shaping up for this announcement.
Earnings Whispers
Our proven model does not conclusively show that Deere is likely to beat the Zacks Consensus Estimate 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 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Deere's Earnings ESP is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.47.
Zacks Rank: Deere has a Zacks Rank #3, which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Surprise History
Last quarter, Deere posted a positive earnings surprise of 12.68%. Notably, the company has delivered an average positive earnings surprise of 23.00% over the trailing four quarters.
Factors to Consider
Deere projected that its sales are likely to deteriorate about 8% in the second quarter of fiscal 2016. The prediction includes a negative currency translation effect of about 3% for the quarter. Weak conditions in the energy sector and energy producing regions, especially in Canada, a decline in rental utilization rates and sluggish economic growth outside the U.S., remain persistent challenges for Deere.
However, Deere will benefit from its skillful execution of business plans, acquisitions, cost controls and asset levels. In addition, the company's commitment to provide advanced products and new technologies, along with efficient manufacturing capacity will drive growth.
Stocks to Consider
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:
Altra Industrial Motion Corp. AIMC has an Earnings ESP of +5.13% and a Zacks Rank #2.
Nordson Corporation NDSN has an Earnings ESP of +2.15% and a Zacks Rank #3.
Worthington Industries, Inc. WOR has an Earnings ESP of +6.35% and a Zacks Rank #3.
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DEERE & CO (DE): Free Stock Analysis Report
NORDSON CORP (NDSN): Free Stock Analysis Report
ALTRA INDUS MOT (AIMC): Free Stock Analysis Report
WORTHINGTON IND (WOR): 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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Earnings Whispers Our proven model does not conclusively show that Deere is likely to beat the Zacks Consensus Estimate this quarter. However, Deere will benefit from its skillful execution of business plans, acquisitions, cost controls and asset levels. In addition, the company's commitment to provide advanced products and new technologies, along with efficient manufacturing capacity will drive growth.
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Stocks to Consider 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: Altra Industrial Motion Corp. AIMC has an Earnings ESP of +5.13% and a Zacks Rank #2. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report NORDSON CORP (NDSN): Free Stock Analysis Report ALTRA INDUS MOT (AIMC): Free Stock Analysis Report WORTHINGTON IND (WOR): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is scheduled to report second-quarter fiscal 2016 results on May 20.
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Stocks to Consider 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: Altra Industrial Motion Corp. AIMC has an Earnings ESP of +5.13% and a Zacks Rank #2. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report NORDSON CORP (NDSN): Free Stock Analysis Report ALTRA INDUS MOT (AIMC): Free Stock Analysis Report WORTHINGTON IND (WOR): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is scheduled to report second-quarter fiscal 2016 results on May 20.
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Stocks to Consider 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: Altra Industrial Motion Corp. AIMC has an Earnings ESP of +5.13% and a Zacks Rank #2. Deere & CompanyDE is scheduled to report second-quarter fiscal 2016 results on May 20. The company posted a year-over-year decline in both earnings and sales in first-quarter fiscal 2016.
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2016-04-25 00:00:00 UTC
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Why Warren Buffett is Buying More of Deere & Company (DE)
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https://www.nasdaq.com/articles/why-warren-buffett-buying-more-deere-company-de-2016-04-25
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company ( DE ), commonly know as "John Deere" is one of Warren Buffett's top dividend stocks and has increased its dividend 12 times since 2004.
Falling crop prices have caused demand to drop sharply for Deere's tractors and combines, but the best time to buy high quality dividend stocks is usually during periods of distress. Warren Buffett seems to think so and added to his stake in Deere during the fourth quarter of 2015.
Let's take a closer look at Deere's business as we consider it for our Top 20 Dividend Stocks portfolio .
John Deere Business Overview
John Deere was founded in 1837 and has since grown to become one of the largest manufacturers of agricultural and construction equipment in the world. Many of Deere's products retail for several hundred thousand dollars and are mostly sold through its independent dealer networks.
The company's Agriculture & Turf segment accounted for about 75% of Deere's equipment operating profit last fiscal year. Some of its key products include tractors, combines, corn pickers, and mowers. Deere's Construction & Forestry segment accounted for the remaining 25% of operating profit and includes products such as backhoe loaders, excavators, crawler dozers, and dump trucks. The company also has a Financial Services segment that lends money to Deere's independent dealers and end customers when they purchase equipment on credit or need a lease.
By geography, close to 60% of Deere's sales are generated in the U.S. and Canada.
Deere's Business Analysis
With a rich operating history dating back more than 175 years ago, John Deere is one of the most iconic American companies of all time. Many of Deere's competitive advantages are rooted in its long-standing operations and the conservative culture it has embraced throughout its corporate life. As a testament to the company's consistency and steady culture, the Roman Catholic Church has had more popes than Deere has had CEOs since it was started in the 19th century.
One of John Deere's famous quotes has continued to guide the company from one generation to the next:
"I will never put my name on a product that doesn't have in it the best that is in me." - John Deere
Deere has relentlessly focused on improving the productivity of its customers by listening closely to their needs and heavily investing in product development.
Deere spends over $1.4 billion annually on research and development and has been named as the number one innovator in the heavy industrial equipment industry by the Patent Board. According to a Bloomberg article, some of Deere's products literally have more lines of software code than a space shuttle!
7 Dividend Stocks With Oodles of Room to Grow
As a result of Deere's product innovation, the company has developed a pristine reputation for quality and reliability. Customers know they will achieve a lower total cost of ownership by buying their equipment from Deere.
John Deere's reputation for quality has made it one of the top 100 brands in the world and allowed it to consistently raise its prices at a low-single digit rate virtually every year, including recessions.
Even with U.S. agriculture equipment sales expected to fall by 15-20% in 2016, Deere expects to realize 2% pricing gains across its equipment operations this year.
The company's pricing power is built on more than just the quality of Deere's products. In fact, one of Deere's biggest competitive advantages is intangible in nature - the relationships its independent dealers have with their customers.
Deere has amassed the largest network of independent dealers in the U.S. agricultural industry. These dealers have developed strong, multi-generational relationships with the farmers in their communities. Many dealers have been passed down from generation to generation and know their customers really well.
Farmers are generally loyal people, too. According to a survey of 2,000 Midwest farmers , about 65% of respondents described themselves as brand loyal, and a whopping 77% of John Deere customers described themselves as brand loyal.
Deere's existing dealer network has a captivated customer base that helps the company maintain number one market share in agricultural machinery and number two market share in construction equipment in North America.
Besides customer relationships, maintaining extensive distribution networks is a critical piece of Deere's value proposition. Most of its heavy equipment costs several hundred thousands of dollars and is used for mission-critical, time-sensitive tasks such as planting crops. Minimizing unplanned downtime is essential.
Deere has more dealers than its competitors, which allows it to quickly service customers to keep their gear up and running. Service parts have historically accounted for 15-20% of Deere's overall equipment revenue, underscoring the importance of having strategically-located and well-equipped dealers on call at all times.
Overall, we believe Deere has a strong economic moat. The company has established an excellent reputation for quality, service, and innovation that allows it to consistently raise prices and hold its dominant market share positions.
New entrants would struggle to break the long-lasting relationships Deere's dealers have built with brand-loyal customers, and substantial capital would need to be invested to develop and manufacture competitive equipment. Smaller rivals also lack the financing arm Deere has that makes it easier for its customers to fund their large equipment purchases.
John Deere's Key Risks
Despite Deere's numerous competitive advantages, it has little control over the factors that influence demand for most of its equipment. With agricultural machinery driving the bulk of Deere's profits, the company is very sensitive to farmer income. When crop prices are high and yields are good, farmers are much more willing to open their wallets for Deere's big-ticket tractors and combines.
However, times are not good right now for farmers.
In fact, farmers have never felt worse about their current situation as measured by The Progressive Farmer Agriculture Confidence Index , which started surveying farmers in 2010. Demand for crops has continued to gradually increase with the world's population over time, but excess supply has been an issue. The world has experienced bumper crops for several years, which has driven down the prices of many major crops such as grain and corn.
As seen below, net farm income skyrocketed from 2010 through 2013 thanks to strong commodity prices and healthy agricultural exports. However, after peaking out at $123.3 billion in 2013, U.S. net farm income plunged over 50% to hit $56.4 billion in 2015.
While the USDA's Economic Research Service expects U.S. net farm income to fall just 3% in 2016 (much less than the 27% drop in 2015), the decrease would bring farm income to its lowest level since 2002.
The ups and downs of the agricultural market are to be expected, but some investors can't help but be reminded of the 1980s farm crisis which saw an economic crisis "more severe than any since the Great Depression."
The farm crisis of the 1980s caused Deere to cut its dividend from 32.9 cents per share in 1981 to 12.5 cents in 1983. Annual dividend payments didn't recover back to 33 cents per share until 1990. Leading up to the crisis, farmers took on substantial amounts of debt to finance their land, crop inputs, and equipment.
Interest rates began to surge leading up to the farm crisis with the prime lending rate tripling to exceed 20% in 1981, an all-time high.
At the same time, unfavorable economic environments and geopolitical factors combined to cause crop prices to collapse.
Farmers' debt-to-income ratios became unsustainable, and many farmers were unable to repay their loans. Just making interest payments was hard enough. As a result, there were widespread bankruptcies, land values plummeted, and demand for Deere's equipment virtually dried up.
Trying to forecast commodity markets is a fool's errand, but it's important to realize just how unpredictable they can be.
We don't believe there will be another farm crisis today because farmers maintain a lower debt-to-assets ratio and interest rates are literally a fraction of what they were in the early 1980s.
On a somewhat related note, Deere also faces indirect risks from government policies that materially impact net farm income.
The 2014 Farm Bill is a government subsidy program meant to help farmers during periods of difficult market conditions. The bill is set to pay farmers close to $14 billion in 2016 (up over 30% from 2015), which amounts to about 25% of total net farm income. Without this legislation, which is updated every five years, it's safe to say that Deere would be experiencing even more difficult times.
Monetary policy also impacts John Deere. With U.S. agricultural exports accounting for around 30% of U.S. farm income, the strength of the U.S. dollar impacts demand for U.S. crops. The export business is currently weak due to the strong dollar and weakening macro outlook in several key foreign countries.
What does all of this mean for Deere's equipment?
Since peaking in 2013, industry sales of large agricultural equipment in America have fallen by more than 60%, and the U.S. and Canadian agricultural industry is projected to be down another 15-20% in 2016. Deere has fared better than the overall market. The company's sales have declined by roughly 25% from their all-time high. However, last year's sales decline was the company's largest percentage drop since the 1930s.
The company's sales have rarely dropped more than two years in a row, and according to Deere's annual report , its sales have never dropped for more than three straight years.
Deere's markets are cyclical, but they have rarely experienced a prolonged down cycle like they seem to be facing today.
The good news is that farm cycles come and go. Demand for crops should continue rising over time as the world's population continues growing, just as it has in the past. World demand for grain and oilseeds has increased in all but two of the past 40 years while more than doubling over that period.
Unexpected events such as a drought could also suppress industry supply to quickly lift commodity prices again. Importantly, Deere is still generating cash and making its business even stronger for the next upturn.
Investors considering Deere should remain aware of the commodity risk the business faces. However, they might also find some comfort knowing that the worst of the current downturn could be close to over (barring another low probability, high severity farm crisis type of event).
John Deere Dividend Analysis
We analyze 25+ years of dividend data and 10+ years of fundamental data to understand the safety and growth prospects of a dividend. Deere's long-term dividend and fundamental data charts can all be seen by clicking here .
Dividend Safety Score
Our Safety Score answers the question, "Is the current dividend payment safe?" We look at factors such as current and historical EPS and FCF payout ratios, debt levels, free cash flow generation, industry cyclicality, ROIC trends, and more. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak.
Deere scores close to average for dividend safety. One of the factors helping the company's score is its healthy dividend payout ratios . Despite the downturn in agricultural markets, Deere's earnings and free cash flow payout ratios have remained solid at 44% and 21%, respectively.
Even if Deere's profits were cut in half, it would still have enough financial strength to continue paying its dividend. Management also targets a 25-35% dividend payout ratio of mid-cycle earnings to ensure the company remains reasonably safe during unexpected industry downturns.
Source: Simply Safe Dividends
Source: Simply Safe Dividends
We also evaluate how a company performed during the last recession to assess the safety of its dividend. Deere's sales fell by 19% during fiscal year 2009, and its reported earnings per share plunged by more than 50%. Deere's stock also dropped by almost 60% in 2008 and trailed the S&P 500 by over 20%. Deere's business is clearly sensitive to the economy and needs to be managed more conservatively than some other types of businesses that are less cyclical.
Source: Simply Safe Dividends
While Deere's business must always be ready for the ups and downs of its markets, the company's free cash flow generation has been nothing short of excellent. As seen below, Deere has generated free cash flow in each of the last 10 years.
The company has consistently improved the profitability and flexibility of its manufacturing plants to quickly respond to industry downturns as well - Deere's free cash flow increased over the last few years despite the steep drop in demand for its agricultural equipment.
Source: Simply Safe Dividends
Another factor we look at when it comes to dividend safety is the return on invested capital a company earns. Higher quality, more reliable businesses tend to healthy and stable returns on capital.
Deere has earned good returns in the high-single to low-double digits throughout most of the last decade. Despite the capital intensity of its operations and the volatility of its end markets, Deere's pricing power and efficient operations have helped it create economic value consistently.
Source: Simply Safe Dividends
Whenever we analyze a cyclical dividend stock, we pay very close attention to its balance sheet. If a company has taken on too much debt right before demand unexpectedly falls, its dividend could be jeopardized.
Looking at Deere's balance sheet is a bit complicated because of its Financial Services segment, which provides financing to dealers. This segment financed the purchase of half of the new equipment sold by Deere last year, so it's very important to the company's business.
Practically all of Deere's debt is related to its Financial Services segment. The loans are backed up by the company's equipment. If a customer defaulted on their payments, Deere would reclaim its equipment and could presumably resell it somewhat easily given its high quality.
Importantly, Deere has run this segment very conservatively over the years. Despite the tough agriculture markets today, credit losses amounted to about $1 per $1,000 of loans in 2015, highlighting the good credit quality of Deere's end customers.
Financial Services segment financed the purchase of roughly half of the new equipment sold by Deere in 2015. Credit losses amounted to about $1 per $1,000 of loans - good credit quality. While we will keep an eye on this metric going forward, we aren't too concerned about the company's loans because of Deere's long-term track record of conservatism.
Source: Simply Safe Dividends
Deere's dividend has a lot of strengths going for it. The company maintains healthy payout ratios, generates consistent free cash flow, and is conservatively financed. Despite the prolonged downturn in agricultural markets, Deere appears to be reasonably well positioned to keep paying its dividend.
Dividend Growth Score
Our Growth Score answers the question, "How fast is the dividend likely to grow?" It considers many of the same fundamental factors as the Safety Score but places more weight on growth-centric metrics like sales and earnings growth and payout ratios. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak.
Deere's Dividend Growth Score of 46 suggests that the company's dividend growth potential is close to average. The company's reasonable payout ratios and excellent cash flow generation are being offset by deteriorating near-term business trends.
Looking longer term, John Deere has increased its dividend for 12 consecutive years and paid uninterrupted dividends since 1988. We are not sure if Deere will eventually qualify to join the dividend aristocrats list , but its dividend growth has certainly been impressive. The company's quarterly dividend has about quadrupled over the last decade from 16 cents per share in 2005 to 60 cents today.
However, as seen in the table below, Deere's dividend growth rate has decelerated from 15% per year over the last five years to a high-single digit rate more recently.
The company has also held its dividend flat at 60 cents per share for eight straight quarters as it deals with the numerous macro headwinds that are reducing its profits.
Source: Simply Safe Dividends
Deere's dividend growth rate will likely remain low until agriculture fundamentals improve. However, once the macro environment is more favorable, the company's dividend has nice potential to continue growing at a mid- to high-single digit rate.
John Deere Stock Valuation
Deere trades at a forward price-to-earnings multiple of 20.2 and has a dividend yield of 2.9%, which is somewhat higher than its five-year average dividend yield of 2.4%. While the company's earnings multiple doesn't look cheap at first glance, cyclical companies usually look expensive near the bottom of their cycles and cheap near the top.
8 Bargain Dividend Stocks to Buy Now
Deere's earnings have contracted significantly in recent years as the agricultural cycle turned down. Investors are anticipating better profits in future years.
Even despite the macro headwinds faced by Deere, the company has still compounded its diluted earnings per share by 5.8% over the last five years.
While trends could get worse before they get better, we ultimately believe Deere's earnings can continue to compound at a mid- to high-single digit rate over the long term. Agriculture demand should continue rising over time, and Deere seems likely to continue dominating the market and steadily repurchasing its shares each year.
Under these assumptions, Deere's stock appears to offer annual total return potential of 9-12%.
Management also issued a target for 2018 to generate $50 billion revenue and earn a 12% operating margin. Assuming the company continues repurchasing its shares each year and pays taxes at a 35% rate, Deere's earnings seem likely to exceed $12 per share under management's goals. If this played out and Deere traded at 13x earnings in 2018, the stock would fetch a price of about $150 per share - nearly double where Deere's stock is trading at today.
Macro weakness makes Deere's 2018 sales goal look increasingly unlikely, but the company's long-term earnings power is still strong once the agriculture cycle begins recovering sometime in the future.
Barring a 1980s type of farm crisis, which seems very unlikely in our view, Deere's stock appears to be reasonably priced for long-term investors.
Our Conclusion on John Deere: Follow Warren Buffett's Lead
Deere is a wonderful business that is sensitive to a number of factors outside of its control. Weak crop prices, the strong dollar, declining farm economics, and sluggish global growth are all hurting demand for the company's large equipment.
However, Deere's economic moat and long-term earnings power remain largely intact. Like Warren Buffett, we enjoy buying blue chip dividend stocks when they are on sale and holding onto them indefinitely. Buffett actually increased his stake in Deere during the fourth quarter of 2015, which suggests he sees value in Deere at its current stock price.
Several of the companies we already own in our Top 20 Dividend Stocks portfolio overlap with Deere, but this is a remarkable business that we will certainly keep our eyes on.
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The post Deere (DE): Warren Buffett is Buying More of this High Quality Dividend Stock appeared first on Simply Safe Dividends .
The post Why Warren Buffett is Buying More of Deere & Company (DE) 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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Falling crop prices have caused demand to drop sharply for Deere's tractors and combines, but the best time to buy high quality dividend stocks is usually during periods of distress. John Deere's reputation for quality has made it one of the top 100 brands in the world and allowed it to consistently raise its prices at a low-single digit rate virtually every year, including recessions. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company ( DE ), commonly know as "John Deere" is one of Warren Buffett's top dividend stocks and has increased its dividend 12 times since 2004. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak. Source: Simply Safe Dividends Deere's dividend growth rate will likely remain low until agriculture fundamentals improve.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company ( DE ), commonly know as "John Deere" is one of Warren Buffett's top dividend stocks and has increased its dividend 12 times since 2004. John Deere Dividend Analysis We analyze 25+ years of dividend data and 10+ years of fundamental data to understand the safety and growth prospects of a dividend. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak.
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What does all of this mean for Deere's equipment? Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak. Barring a 1980s type of farm crisis, which seems very unlikely in our view, Deere's stock appears to be reasonably priced for long-term investors.
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c6806bf5-75d5-4820-8e27-7b67f94841a5
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722654.0
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2016-04-20 00:00:00 UTC
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After Alcoa Inc.’s Earnings, These 4 Industrials Could Disappoint
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https://www.nasdaq.com/articles/after-alcoa-incs-earnings-these-4-industrials-could-disappoint-2016-04-20
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Image source: Alcoa.
As a pioneer in the aluminum industry, Alcoa 's (NYSE: AA) earnings release sets the tone for the earnings season, especially for industrial companies. So whether you're an investor in heavy-equipment manufacturers such as Deere & Company (NYSE: DE) and Caterpillar (NYSE: CAT), or truck and engine companies such as CumminsInc. (NYSE: CMI) and Paccar (NASDAQ: PCAR), Alcoa's outlook about key end markets can give you a great idea about what to expect when your company reports its quarterly earnings.
For instance, consider some of the things that Alcoa said during its first-quarter earnings release last week:
These comments from Alcoa hold valuable information that investors in heavyweights such as Caterpillar, Deere, Paccar, and Cummins can use to prepare themselves to avoid nasty shocks when these companies release their numbers and guidance over the next few weeks. To know how, click on the following slideshow now.
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After Alcoa's Results, These 4 Industrial Companies Could Disappoint This Earnings Season from
The article After Alcoa Inc.'s Earnings, These 4 Industrials Could Disappoint originally appeared on Fool.com.
Neha Chamaria has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Cummins and Paccar. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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(NYSE: CMI) and Paccar (NASDAQ: PCAR), Alcoa's outlook about key end markets can give you a great idea about what to expect when your company reports its quarterly earnings. For instance, consider some of the things that Alcoa said during its first-quarter earnings release last week: These comments from Alcoa hold valuable information that investors in heavyweights such as Caterpillar, Deere, Paccar, and Cummins can use to prepare themselves to avoid nasty shocks when these companies release their numbers and guidance over the next few weeks. So whether you're an investor in heavy-equipment manufacturers such as Deere & Company (NYSE: DE) and Caterpillar (NYSE: CAT), or truck and engine companies such as CumminsInc.
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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. So whether you're an investor in heavy-equipment manufacturers such as Deere & Company (NYSE: DE) and Caterpillar (NYSE: CAT), or truck and engine companies such as CumminsInc. (NYSE: CMI) and Paccar (NASDAQ: PCAR), Alcoa's outlook about key end markets can give you a great idea about what to expect when your company reports its quarterly earnings.
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For instance, consider some of the things that Alcoa said during its first-quarter earnings release last week: These comments from Alcoa hold valuable information that investors in heavyweights such as Caterpillar, Deere, Paccar, and Cummins can use to prepare themselves to avoid nasty shocks when these companies release their numbers and guidance over the next few weeks. So whether you're an investor in heavy-equipment manufacturers such as Deere & Company (NYSE: DE) and Caterpillar (NYSE: CAT), or truck and engine companies such as CumminsInc. (NYSE: CMI) and Paccar (NASDAQ: PCAR), Alcoa's outlook about key end markets can give you a great idea about what to expect when your company reports its quarterly earnings.
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The Motley Fool is short Deere & Company. So whether you're an investor in heavy-equipment manufacturers such as Deere & Company (NYSE: DE) and Caterpillar (NYSE: CAT), or truck and engine companies such as CumminsInc. (NYSE: CMI) and Paccar (NASDAQ: PCAR), Alcoa's outlook about key end markets can give you a great idea about what to expect when your company reports its quarterly earnings.
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1d7bb801-cae0-4f34-8485-28367fd2ac9d
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722655.0
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2016-04-19 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - DE
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DE
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-de-2016-04-19
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $81.11, changing hands as high as $82.62 per share. Deere & Co. shares are currently trading up about 5.3% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $82.52.
According to the ETF Finder at ETF Channel, DE makes up 7.72% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading up by about 2% on the day Tuesday.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $81.11, changing hands as high as $82.62 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $82.52. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $81.11, changing hands as high as $82.62 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $82.52. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $81.11, changing hands as high as $82.62 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $82.52. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $81.11, changing hands as high as $82.62 per share. According to the ETF Finder at ETF Channel, DE makes up 7.72% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading up by about 2% on the day Tuesday. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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722656.0
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2016-04-17 00:00:00 UTC
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A $3 Trillion Market in 2020: 3 Sectors You Need to Watch
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https://www.nasdaq.com/articles/3-trillion-market-2020-3-sectors-you-need-watch-2016-04-17
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Image source: John Deere.
Less than four years from now, there will be tens of billions of things connected to the Internet. I'm not just talking about computers, tablets, or smartphones, either. I'm talking about manhole covers, jet engines, conveyor belts in factories, plants, and even cows.
It's called the Internet of Things (IoT), or the Internet of Everything, and it's more than just a passing technology fad. In fact, all of those things I just listed above are already being connected to the Internet. Some farmers are tracking their cows via the Internet, through chips implanted in their ears. And manufacturers are keeping an eye on conveyor belts via sensors connected to the Internet to make sure equipment doesn't overheat.
The fact is, by 2020, there will be more than 20 billion things online. And we're quickly approaching that number. Research company Gartner says there are over 6 billion things online now, and that the IoT market will be worth $3 trillion just four years from now. Companies are seeing the dollar signs in the IoT movement -- and it's time investors do, too.
Here are three ways the IoT is transforming key industries, and some of the companies that are benefiting in big ways.
How IoT is changing transportation
General Electric uses sensors inside some of its plane engines to track how they perform and analyze their efficiency. The company's Flight Efficiency Services software has helped AirAsia save $50 million in fuel costs over five years.
GE also uses a software and sensor system to track railway cars and their routes. The company's Trip Optimizer System helps deliver over 2 million containers across 2,000 routes every year, and it's bringing huge efficiency gains for railways. GE says Trip Optimizer saves an average of 32,000 gallons of fuel per locomotive, every year.
In 2015, GE brought in $5 billion in revenue from its digital services, which is largely made up of its "Digital Industrial" (IoT) sector, and the company says those revenues are growing 20% annually.
But it's not just planes and trains that are benefiting from the IoT. By 2020, nearly 250 million cars will be connected to the Internet. More than 10 million AT&T -connected cars will be on the road by next year, and revenue opportunities are huge. PriceWaterhouseCooper estimates that the connected car market will be worth $149 billion by 2020.
How IoT is changing the public sector
Cisco Systems says IoT will change five key elements of the public sector, including employee productivity, citizen experience, and the military.
Cisco estimates hundreds of billions of dollars will be saved because of new efficiencies, and up to $125 billion in new public sector revenues will be generated.
This is already starting to happen with some very practical technology. Cisco says the U.K. has seen a 7% decrease in crime credited to the country's smart city lighting connections, and waste-collection costs have dropped by 30% after sensors and software were added to the system.
Verizon Communications is betting on smart city opportunities in the U.S. and has already begun implementing smart city solutions in Savannah, Georgia. The company uses sensors and its cellular network to help the city remotely control electricity connections in homes, which helps to reduce manpower requirements.
And the company is considering new cellular plans just for IoT devices. The unlimited, flat-rate plans will make it easy and affordable for more cities to expand their IoT solutions, and it's a clever move on Verizon's part. Smart cities are expected to bring cost savings and revenue of $1 trillion by 2019.
Verizon is already bringing in significant IoT revenue. In 2015, the company's IoT revenue increased by 18% year over year to $690 million, and the company added another $200 million in Q4 2014 alone.
How IoT is changing agriculture
One of the lesser-known ways IoT is influencing everything around us is through farming. Right now, farmers can use FieldScript software from Monsanto , which allows farmers to know exactly how much seed they should be planting in their fields, and where. Detailed maps display real-time feedback on seed locations and help farmers use less seed.
John Deere offers a Field Connect system that allows farmers to monitor air and soil moisture levels, wind speed, solar radiation, humidity, rainfall, and even leaf wetness. By analyzing this information, farmers can make better-informed irrigation decisions, saving time and money on watering costs.
John Deere and others are wise to focus on this precision agricultural market. Digital-based agriculture is projected to grow at a compound annual growth rate of about 12% over the next four years and expected to reach $4.8 billion by 2020.
Foolish thoughts
These industries are just a handful of what the IoT has to offer. And the $3 trillion estimate might even be on the lower side of its potential.
For investors looking for the "next big thing," the Internet of Things certainly looks like a good option. Tech companies, conglomerates, agricultural companies, and wireless providers alike all see the value in the Internet of Things -- now it's time for investors to get on board.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
The article A $3 Trillion Market in 2020: 3 Sectors You Need to Watch originally appeared on Fool.com.
Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company. The Motley Fool is short Deere & Company. The Motley Fool recommends Cisco Systems, Gartner, and Verizon Communications. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's Trip Optimizer System helps deliver over 2 million containers across 2,000 routes every year, and it's bringing huge efficiency gains for railways. Cisco says the U.K. has seen a 7% decrease in crime credited to the country's smart city lighting connections, and waste-collection costs have dropped by 30% after sensors and software were added to the system. John Deere offers a Field Connect system that allows farmers to monitor air and soil moisture levels, wind speed, solar radiation, humidity, rainfall, and even leaf wetness.
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The company's Trip Optimizer System helps deliver over 2 million containers across 2,000 routes every year, and it's bringing huge efficiency gains for railways. Image source: John Deere. How IoT is changing transportation General Electric uses sensors inside some of its plane engines to track how they perform and analyze their efficiency.
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In 2015, GE brought in $5 billion in revenue from its digital services, which is largely made up of its "Digital Industrial" (IoT) sector, and the company says those revenues are growing 20% annually. In 2015, the company's IoT revenue increased by 18% year over year to $690 million, and the company added another $200 million in Q4 2014 alone. Image source: John Deere.
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Image source: John Deere. How IoT is changing transportation General Electric uses sensors inside some of its plane engines to track how they perform and analyze their efficiency. The company's Trip Optimizer System helps deliver over 2 million containers across 2,000 routes every year, and it's bringing huge efficiency gains for railways.
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2016-04-13 00:00:00 UTC
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Will Deere's (DE) Growth Drivers Help Overcome Headwinds?
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https://www.nasdaq.com/articles/will-deeres-de-growth-drivers-help-overcome-headwinds-2016-04-13
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We have issued an updated research report on Deere & CompanyDE on Apr 12, 2016. Deere will benefit from the divestiture of non-core assets and acquisitions. However, unfavorable foreign currency movements, a weak agricultural sector and sluggish economic growth remain headwinds.
Deere remains optimistic about the long term, based on steady investments in new products and geographies. In Feb 2016, Deere completed the acquisition of Monosem, the European market leader in precision planters. The purchase includes the company's four facilities in France and two in the U.S. The deal will help accelerate Deere's market reach in precision planting equipment and add engineering expertise to further develop planting technology.
Last month, Deere acquired a majority stake in Hagie Manufacturing, making its foray into the growing high-clearance spraying equipment market. The deal will provide the company with a broader range of sprayer options and integrate Deere's precision technology into the Hagie equipment.
Further, Deere divested its crop insurance unit to West Des Moines, IA-based Farmers Mutual Hail Insurance Company (FMH) last year. Notably, effective risk management remains an important part of the company's operations. Deere has been persistently shedding its non-core assets in order to become a more focused and profitable firm, and has completed the sale of its irrigation unit and a majority interest in its landscape operations.
However, Deere slashed its outlook for fiscal 2016. The company projected total equipment sales decline of 10% year over year in fiscal 2016. Sales are also likely to deteriorate about 8% in the second quarter of fiscal 2016. The projection includes a negative currency translation impact of about 3% for the fiscal year and the second quarter.
The company expects Agriculture and Turf equipment sales decline of 10% in fiscal 2016, including an unfavorable currency translation impact of about 4%. Industry sales for agricultural equipment in the U.S. and Canada are expected to be down 15%-20% in 2016 owing to low commodity prices and stagnant farm income.
Moreover, weak conditions in the energy sector and sluggish economic growth outside the U.S. remain headwinds for the company.
At present, Deere carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Some better-ranked stocks in the sector include Briggs & Stratton Corporation BGG , Astec Industries, Inc. ASTE and AptarGroup, Inc. ATR . All these stocks carry a Zacks Rank #2 (Buy).
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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
APTARGROUP INC (ATR): Free Stock Analysis Report
ASTEC INDS INC (ASTE): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
BRIGGS & STRATT (BGG): 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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Last month, Deere acquired a majority stake in Hagie Manufacturing, making its foray into the growing high-clearance spraying equipment market. The deal will provide the company with a broader range of sprayer options and integrate Deere's precision technology into the Hagie equipment. Deere has been persistently shedding its non-core assets in order to become a more focused and profitable firm, and has completed the sale of its irrigation unit and a majority interest in its landscape operations.
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The company expects Agriculture and Turf equipment sales decline of 10% in fiscal 2016, including an unfavorable currency translation impact of about 4%. Click to get this free report APTARGROUP INC (ATR): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here. We have issued an updated research report on Deere & CompanyDE on Apr 12, 2016.
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The company projected total equipment sales decline of 10% year over year in fiscal 2016. The company expects Agriculture and Turf equipment sales decline of 10% in fiscal 2016, including an unfavorable currency translation impact of about 4%. Click to get this free report APTARGROUP INC (ATR): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company projected total equipment sales decline of 10% year over year in fiscal 2016. The company expects Agriculture and Turf equipment sales decline of 10% in fiscal 2016, including an unfavorable currency translation impact of about 4%. We have issued an updated research report on Deere & CompanyDE on Apr 12, 2016.
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722658.0
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2016-04-05 00:00:00 UTC
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These 54 Big Blue Chips Are On the Move
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https://www.nasdaq.com/articles/these-54-big-blue-chips-are-move-2016-04-05
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
During these busy times, it pays to stay on top of the latest profit opportunities, and today's blog post should be a great place to start.
After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 54 big blue chips.
10 Blue-Chip Stock Charts to Watch in Q2
Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
This Week's Ratings Changes:
To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool. You may get started here .
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7 Best Funds for a New Rollover IRA Portfolio
The post These 54 Big Blue Chips Are On the Move 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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After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 54 big blue chips. More From InvestorPlace 10 Stocks That Could Derail Your Retirement 7 Low-Risk Healthcare Stocks to Buy Now 7 Best Funds for a New Rollover IRA Portfolio The post These 54 Big Blue Chips Are On the Move appeared first on InvestorPlace . This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool.
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After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 54 big blue chips. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool.
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This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool. More From InvestorPlace 10 Stocks That Could Derail Your Retirement 7 Low-Risk Healthcare Stocks to Buy Now 7 Best Funds for a New Rollover IRA Portfolio The post These 54 Big Blue Chips Are On the Move appeared first on InvestorPlace . After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 54 big blue chips.
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More From InvestorPlace 10 Stocks That Could Derail Your Retirement 7 Low-Risk Healthcare Stocks to Buy Now 7 Best Funds for a New Rollover IRA Portfolio The post These 54 Big Blue Chips Are On the Move appeared first on InvestorPlace . After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 54 big blue chips. This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool.
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2016-04-04 00:00:00 UTC
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Illinois Tool Works Inc. Named Top 25 ‘SAFE’ Dividend Stock (ITW)
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DE
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https://www.nasdaq.com/articles/illinois-tool-works-inc.-named-top-25-safe-dividend-stock-itw-2016-04-04
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Illinois Tool Works Inc. ( ITW ) has been named to the Dividend Channel "S.A.F.E. 25" list, signifying a stock with above-average "DividendRank" statistics including a strong 2.1% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent "DividendRank" report.
According to the ETF Finder at ETF Channel , Illinois Tool Works is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 0.97% of the SPDR S&P Dividend ETF ( SDY ), which holds $128,760,732 worth of ITW shares.
Illinois Tool Works made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S . Solid return - hefty yield and strong DividendRank characteristics; A. Accelerating amount - consistent dividend increases over time; F . Flawless history - never a missed or lowered dividend; E. Enduring - at least two decades of dividend payments.
START SLIDESHOW :
Top 25 S.A.F.E. Dividend Stocks Increasing Payments For Decades »
The annualized dividend paid by Illinois Tool Works is $2.20 per share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/29/2016.
10 Dividend Stocks to Buy for the Second Quarter
Below is a long-term dividend history chart for ITW, which the report stressed as being of key importance.
ITW operates in the Industrial Machinery & Equipment sector, among companies like Danaher Corp. ( DHR ), and Deere & Co. ( DE ).
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The post Illinois Tool Works Inc. Named Top 25 'SAFE' Dividend Stock (ITW) 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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25" list, signifying a stock with above-average "DividendRank" statistics including a strong 2.1% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent "DividendRank" report. Solid return - hefty yield and strong DividendRank characteristics; A. ITW operates in the Industrial Machinery & Equipment sector, among companies like Danaher Corp. ( DHR ), and Deere & Co. ( DE ).
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Illinois Tool Works Inc. ( ITW ) has been named to the Dividend Channel "S.A.F.E. Dividend Stocks Increasing Payments For Decades » The annualized dividend paid by Illinois Tool Works is $2.20 per share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/29/2016. More From InvestorPlace 7 F-Rated Stocks You'd Be a Fool to Own 10 Tech Stocks That Are Disturbingly Overbought MVP Portfolio: The 6 Best Stocks You Can Buy Now The post Illinois Tool Works Inc. Named Top 25 'SAFE' Dividend Stock (ITW) appeared first on InvestorPlace .
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Illinois Tool Works Inc. ( ITW ) has been named to the Dividend Channel "S.A.F.E. Dividend Stocks Increasing Payments For Decades » The annualized dividend paid by Illinois Tool Works is $2.20 per share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/29/2016. More From InvestorPlace 7 F-Rated Stocks You'd Be a Fool to Own 10 Tech Stocks That Are Disturbingly Overbought MVP Portfolio: The 6 Best Stocks You Can Buy Now The post Illinois Tool Works Inc. Named Top 25 'SAFE' Dividend Stock (ITW) appeared first on InvestorPlace .
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25" list, signifying a stock with above-average "DividendRank" statistics including a strong 2.1% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent "DividendRank" report. Dividend Stocks Increasing Payments For Decades » The annualized dividend paid by Illinois Tool Works is $2.20 per share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/29/2016. More From InvestorPlace 7 F-Rated Stocks You'd Be a Fool to Own 10 Tech Stocks That Are Disturbingly Overbought MVP Portfolio: The 6 Best Stocks You Can Buy Now The post Illinois Tool Works Inc. Named Top 25 'SAFE' Dividend Stock (ITW) appeared first on InvestorPlace .
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2016-04-01 00:00:00 UTC
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3 Big Stock Charts for Friday: Deere & Company (DE), Walt Disney (DIS) and Wells Fargo & Co (WFC)
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DE
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https://www.nasdaq.com/articles/3-big-stock-charts-for-friday%3A-deere-company-de-walt-disney-dis-and-wells-fargo-co-wfc
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While stocks finished mixed on Thursday to put an end to March and the first quarter of the year, it capped the greatest stock market comeback in history. The Dow Jones Industrial Average's 11.3% drawdown into the January low - with a retest in February - is the largest on record for a quarter that finished in the green. (The next closest drawdown was during the 1930s.)
Impressive stuff. But where do we go from here as stocks now struggle just below Dow 18,000 - a level that has limited upward progress since late 2014? As the calendar flips to April and the second quarter starts, we will see if the bears will emerge from a multimonth hibernation to reverse what's been a historic, uninterrupted seven-week uptrend.
A stronger economy, lower unemployment and higher inflation might be good for the economy, but it won't be for a stock market addicted to cheap money stimulus as the Federal Reserve is forced to raise rates again - possible as soon as April but more likely to be in June. That will worsen the weak oil/strong dollar dynamic that is weighing so badly on corporate earnings.
For now, I continue to recommend conservative investors move to cash while the more aggressive focus on short-side opportunities such as the following three charts: Deere & Company (NYSE: DE ), Wells Fargo & Co (NYSE: WFC ) and Walt Disney Co (NYSE: DIS ).
Deere & Company (DE)
DE suffered a big breakdown on Thursday below its 50-day moving average for the first time since early February. This caps what is nearly a monthlong reversal, returning shares to the consolidation range that has been in place since last August.
MVP Portfolio: The 6 Best Stocks You Can Buy Now
The catalyst for the reversal was a weak USDA grains report that showed a 20% increase in wheat stockpiles and a 15% increase in soybean stockpiles.
Wells Fargo & Co (WFC)
WFC, like many big bank stocks, has been under pressure in recent weeks as long-term interest rates have started to decline again - pressure net interest margins. As a result, shares have dropped back below their 50-day moving average to end the two-month uptrend that started on Feb. 11. This continues a downtrend that's been in place since last summer.
It didn't help that UBS analysts recently initiated coverage on the stock with a sell rating as they believe key strengths have already been largely priced in.
Walt Disney Co (DIS)
DIS shares have stalled at resistance near the $100 level, with a big breakout attempt on Thursday reversed into the closing bell. Shares have bounced back a little from the mid-February lows but remain well off of the double-top high near $120 amid lingering concerns about the company's television business.
Watch for a test of support near the 50-day moving average, a violation of which could set up a drop back to $90.
Anthony Mirhaydari is founder of theEdgeandEdge Proinvestment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
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The post 3 Big Stock Charts for Friday: Deere & Company (DE), Walt Disney (DIS) and Wells Fargo & Co (WFC) 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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A stronger economy, lower unemployment and higher inflation might be good for the economy, but it won't be for a stock market addicted to cheap money stimulus as the Federal Reserve is forced to raise rates again - possible as soon as April but more likely to be in June. For now, I continue to recommend conservative investors move to cash while the more aggressive focus on short-side opportunities such as the following three charts: Deere & Company (NYSE: DE ), Wells Fargo & Co (NYSE: WFC ) and Walt Disney Co (NYSE: DIS ). Deere & Company (DE) DE suffered a big breakdown on Thursday below its 50-day moving average for the first time since early February.
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For now, I continue to recommend conservative investors move to cash while the more aggressive focus on short-side opportunities such as the following three charts: Deere & Company (NYSE: DE ), Wells Fargo & Co (NYSE: WFC ) and Walt Disney Co (NYSE: DIS ). Wells Fargo & Co (WFC) WFC, like many big bank stocks, has been under pressure in recent weeks as long-term interest rates have started to decline again - pressure net interest margins. More From InvestorPlace 10 Cheap Stocks to Buy for $10 or Less 10 Biotech Stocks With Big Catalysts Coming This Quarter The 10 Best Mutual Funds of the Past 10 Years The post 3 Big Stock Charts for Friday: Deere & Company (DE), Walt Disney (DIS) and Wells Fargo & Co (WFC) appeared first on InvestorPlace .
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For now, I continue to recommend conservative investors move to cash while the more aggressive focus on short-side opportunities such as the following three charts: Deere & Company (NYSE: DE ), Wells Fargo & Co (NYSE: WFC ) and Walt Disney Co (NYSE: DIS ). More From InvestorPlace 10 Cheap Stocks to Buy for $10 or Less 10 Biotech Stocks With Big Catalysts Coming This Quarter The 10 Best Mutual Funds of the Past 10 Years The post 3 Big Stock Charts for Friday: Deere & Company (DE), Walt Disney (DIS) and Wells Fargo & Co (WFC) appeared first on InvestorPlace . A stronger economy, lower unemployment and higher inflation might be good for the economy, but it won't be for a stock market addicted to cheap money stimulus as the Federal Reserve is forced to raise rates again - possible as soon as April but more likely to be in June.
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Deere & Company (DE) DE suffered a big breakdown on Thursday below its 50-day moving average for the first time since early February. More From InvestorPlace 10 Cheap Stocks to Buy for $10 or Less 10 Biotech Stocks With Big Catalysts Coming This Quarter The 10 Best Mutual Funds of the Past 10 Years The post 3 Big Stock Charts for Friday: Deere & Company (DE), Walt Disney (DIS) and Wells Fargo & Co (WFC) appeared first on InvestorPlace . A stronger economy, lower unemployment and higher inflation might be good for the economy, but it won't be for a stock market addicted to cheap money stimulus as the Federal Reserve is forced to raise rates again - possible as soon as April but more likely to be in June.
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2016-03-31 00:00:00 UTC
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Why Allergan plc Ordinary Shares (AGN), Deere & Company (DE) and Micron Technology, Inc. (MU) Are 3 of Today’s Worst Stocks
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https://www.nasdaq.com/articles/why-allergan-plc-ordinary-shares-agn-deere-company-de-and-micron-technology-inc.-mu-are-3
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For a while today, it looked like the bulls were going to regroup after yesterday's lull and finally punch through a key technical and psychological ceiling. The buyers could never get the ball rolling, however, letting stocks slip into the red as the closing bell approached. The S&P 500 closed at 2059.74, down 0.2%.
It could have been worse, however - you could have owned Allergan plc Ordinary Shares (NYSE: AGN ), Deere & Company (NYSE: DE ) or Micron Technology, Inc. (NASDAQ: MU ). These three names led Thursday's bearish charge.
Here's the deal.
Allergan plc Ordinary Shares (AGN)
In retrospect, the fact that Allergan is falling out of favor with analysts can't come as a complete surprise. The pending merger with Pfizer Inc. (NYSE: PFE ) has raised too many red flags for regulators , who are fearful that any such pairing just has the mere potential to send certain drug prices soaring. On the heels of the unexpected approval delays that up-ended one of the key arguments for owning AGN, the stock was sent more than 2% lower on Thursday. It's down 14% year-to-date, mostly for the same reason.
Fanning the bearish flames today was a lowered target price on AGN from Canaccord Genuity. Although Canaccord still says Allergan is a "Buy", ongoing problems pose a threat to all specialty drugmakers. Its price target on AGN was lowered from $340 per share to $320 .
9 Hot Stocks to Toss in the Trash Before Q2
Deere & Company (DE)
Don't look for anything specific Deere & Company said or did on Thursday to explain the near 4% setback DE shares suffered. Instead, blame irrigation company Lindsay Corporation (NYSE: LNN ), which up-ended Deere & Company along with several other agricultural stocks with its cautious commentary delivered with its fiscal second quarter results this morning .
The alarm that spooked DE shareholders:
"We are now in the midst of the primary selling season for irrigation equipment in North America. While we have seen signs of stabilization, the market continues to reflect reductions from peak periods in farmers' investments in equipment due to the lowest projected net farm income since 2002."
Investors understandably assumed the tightened purse strings, and making things tough on Lindsay is also crimping other farm equipment purchases.
Micron Technology, Inc. (MU)
Last but not least, while Q1's earnings season hasn't officially begun yet, unofficially it's underway, and Micron Technology was one of the first to report … unfortunately.
Last quarter - its fiscal Q2 - Micron Technology lost five cents per share on sales of $2.93 billion . The pros were calling for a loss of 9 cents per share, but were also looking for a top line of $3.27 billion. More alarmingly, revenue was down 30% on a year-over-year basis thanks to an outright implosion in DRAM demand . The outlook for the current quarter was similarly ugly, coming up well short of analysts' outlooks.
The news prompted a small wave of downgrades for MU, including one from Macquarie Research that cut right to the heart of the matter. Along with a lowered rating of "Neutral", from a "Buy", Macquarie cautioned it doesn't see any meaningful upside catalysts in the cards for Micron Technology for the next few quarters.
MU ended up closing only a bit lower for the session, though it was down as much as 4.5% at one point, and most of the day's trades on the stock transpired toward the low end of the day's range.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post Why Allergan plc Ordinary Shares (AGN), Deere & Company (DE) and Micron Technology, Inc. (MU) Are 3 of Today's Worst Stocks 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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Investors understandably assumed the tightened purse strings, and making things tough on Lindsay is also crimping other farm equipment purchases. It could have been worse, however - you could have owned Allergan plc Ordinary Shares (NYSE: AGN ), Deere & Company (NYSE: DE ) or Micron Technology, Inc. (NASDAQ: MU ). Here's the deal.
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It could have been worse, however - you could have owned Allergan plc Ordinary Shares (NYSE: AGN ), Deere & Company (NYSE: DE ) or Micron Technology, Inc. (NASDAQ: MU ). More From InvestorPlace 10 Stocks That Could Derail Your Retirement 7 Stocks That Are Rotten Inside and Out 10 Companies With Dangerous Dividends The post Why Allergan plc Ordinary Shares (AGN), Deere & Company (DE) and Micron Technology, Inc. (MU) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . Here's the deal.
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It could have been worse, however - you could have owned Allergan plc Ordinary Shares (NYSE: AGN ), Deere & Company (NYSE: DE ) or Micron Technology, Inc. (NASDAQ: MU ). 9 Hot Stocks to Toss in the Trash Before Q2 Deere & Company (DE) Don't look for anything specific Deere & Company said or did on Thursday to explain the near 4% setback DE shares suffered. More From InvestorPlace 10 Stocks That Could Derail Your Retirement 7 Stocks That Are Rotten Inside and Out 10 Companies With Dangerous Dividends The post Why Allergan plc Ordinary Shares (AGN), Deere & Company (DE) and Micron Technology, Inc. (MU) Are 3 of Today's Worst Stocks appeared first on InvestorPlace .
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It could have been worse, however - you could have owned Allergan plc Ordinary Shares (NYSE: AGN ), Deere & Company (NYSE: DE ) or Micron Technology, Inc. (NASDAQ: MU ). More From InvestorPlace 10 Stocks That Could Derail Your Retirement 7 Stocks That Are Rotten Inside and Out 10 Companies With Dangerous Dividends The post Why Allergan plc Ordinary Shares (AGN), Deere & Company (DE) and Micron Technology, Inc. (MU) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . Here's the deal.
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321cc817-4fec-4b54-9922-0a660b92394f
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722662.0
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2016-03-30 00:00:00 UTC
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Deere Enters High-Clearance Spraying Market with Hagie Stake
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DE
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https://www.nasdaq.com/articles/deere-enters-high-clearance-spraying-market-with-hagie-stake-2016-03-30
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Deere & CompanyDE has acquired a majority stake in Hagie Manufacturing, making its foray into the growing high-clearance spraying equipment market. Hagie Manufacturing, which is a market leader in high-clearance sprayers in the U.S., will continue producing sprayers under the Hagie brand from its current Clarion, IO location.
High-clearance sprayers allow farmers to spray fields with fertilizers and pesticides later in the growing season. Sales and service for Hagie equipment will be integrated into Deere's global distribution channel over the next 15 months. Hagie products will now have access to Deere's huge customer base. The deal will provide Deere a broader range of sprayer options and integrate Deere's precision technology into the Hagie equipment. This will subsequently benefit its customers by cutting costs and improving yields.
Despite the currently weak demand for farm equipment, Deere and other agriculture equipment manufacturers have continued to invest in acquisitions, and research and development given their positive long-term outlook on the sector. Deere has announced hundreds of layoffs due to lackluster earnings results. The company reported a decline in both its top and bottom line for the first quarter of fiscal 2016 (ended Jan 31, 2016) owing to sluggish growth in global markets for farm and construction equipment.
Moreover, Deere provided a bearish outlook for fiscal 2016. It expects equipment sales to drop around 8% year over year in the second quarter of fiscal 2016 and 10% for the full fiscal.
The company foresees global sales for Construction & Forestry equipment to tank about 11% in fiscal 2016. The decline reflects the impact of soft conditions in the North American energy sector, as well as lower sales outside the U.S. and Canada. It also expects Agriculture and Turf equipment sales to slump 10% for the fiscal.
However, Deere expects to record solid profitability over the long term on the back of increased global demand for food, shelter and infrastructure. But, as of now, weak conditions in the energy and agricultural sectors, and sluggish economic growth outside the U.S. remain headwinds for the company.
Deere currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in this sector are Briggs & Stratton Corporation BGG , Astec Industries, Inc. ASTE and The Toro Company TTC . All of these stocks have a Zacks Rank #2 (Buy).
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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
ASTEC INDS INC (ASTE): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
BRIGGS & STRATT (BGG): Free Stock Analysis Report
TORO CO (TTC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE has acquired a majority stake in Hagie Manufacturing, making its foray into the growing high-clearance spraying equipment market. The company reported a decline in both its top and bottom line for the first quarter of fiscal 2016 (ended Jan 31, 2016) owing to sluggish growth in global markets for farm and construction equipment. However, Deere expects to record solid profitability over the long term on the back of increased global demand for food, shelter and infrastructure.
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Despite the currently weak demand for farm equipment, Deere and other agriculture equipment manufacturers have continued to invest in acquisitions, and research and development given their positive long-term outlook on the sector. Click to get this free report ASTEC INDS INC (ASTE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report TORO CO (TTC): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE has acquired a majority stake in Hagie Manufacturing, making its foray into the growing high-clearance spraying equipment market.
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The deal will provide Deere a broader range of sprayer options and integrate Deere's precision technology into the Hagie equipment. Despite the currently weak demand for farm equipment, Deere and other agriculture equipment manufacturers have continued to invest in acquisitions, and research and development given their positive long-term outlook on the sector. Click to get this free report ASTEC INDS INC (ASTE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report TORO CO (TTC): Free Stock Analysis Report To read this article on Zacks.com click here.
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Despite the currently weak demand for farm equipment, Deere and other agriculture equipment manufacturers have continued to invest in acquisitions, and research and development given their positive long-term outlook on the sector. Click to get this free report ASTEC INDS INC (ASTE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report TORO CO (TTC): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE has acquired a majority stake in Hagie Manufacturing, making its foray into the growing high-clearance spraying equipment market.
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707fa746-1d66-4729-bd6a-8c3f3e09fb06
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722663.0
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2016-03-23 00:00:00 UTC
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Is Deere's Current High ROIC Business Model Sustainable For The Long Term?
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https://www.nasdaq.com/articles/deeres-current-high-roic-business-model-sustainable-long-term-2016-03-23
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By Blue Pacific Partners :
One of the more interesting microeconomic dynamics over time is the erosion of an industry's barriers to entry, as a result of excessive price and margin increases by industry incumbents.
Businesses can become permanently impaired, relative to their prior position, as a result of a couple primary leading causes:
1) Increasing competition (think American Express vs Visa / MasterCard, Gillette Razors vs Dollar Shave Club etc., IBM & Microsoft vs Google & Apple, Circuit City vs Amazon, Borders Bookstores vs Amazon, etc.)
2) Obsolescence (think Blockbuster Video, Tower Records, Kodak, etc.)
3) Some mix of both 1 & 2 (arguably Microsoft, Borders, Dell Computer, IBM, etc.)
This article will focus on cause #1: increasing competition.
Generically speaking, competition usually increases when prospective new entrants believe they can earn attractive profits that make the risk worthwhile.
Some industries have high barriers to entry, either because of brand importance, capital requirements, customer relationships or technological reasons. Other industries have low barriers to entry and are intensely competitive.
Industries with high barriers to entry generally have high returns on capital and high margin structures, while industries with low barriers to entry have low returns on capital.
A Brief Review of the North American Tractor Industry
Over the past forty years, the North American tractor market has changed considerably. During the last agriculture boom in the 1970s and subsequent bust in the 1980s, there were several tractor manufacturers: International Harvester, New Holland, Ford, Deere, Massey-Ferguson and a handful of other smaller players.
The 1980s agriculture downturn saw extensive consolidation, leaving the market with two dominant players: Deere (TICKER: DE ) and Case New Holland (TICKER: CNHI ).
Over the past 30 years, Deere's market share has gone from the high 20s as a percentage share of the total market to somewhere in the 60s today.
Today, the North American large agriculture equipment market is essentially a duopoly.
Farm-equipment.com has estimated Deere today has a nearly 2/3 share of the North American Market, with Case IH / New Holland taking up largely the rest:
Deere's Revenue Growth
Over the past 30 years, Deere's domestic revenue has grown at ~5% annual growth rate, while Deere's international revenue has grown at a 6% annual growth rate.
Domestically, Deere grew its market share from about 30% in the early 1980s to about 65% by the 2000s.
Market share gains added a compounded 3% per year to Deere's total domestic growth over the past three decades.
Inflation averaged about 3% per year over this time.
Total acreage for row crops actually declined by more than 10% over the past 35 years, while total food production increased more than 50% (higher yields per acre more than compensated for decline in row crop acreage).
So for the domestic annual revenue growth of ~5%/yr, we have:
a) market share gains added about 3%/yr
b) inflation added about 3%/yr
c) row-crop tractor market shrank in the low double-digits, owing to acreage decline
d) Deere raised prices and expanded its margin
e) Generally speaking, manufacturing productivity across all industries has improved dramatically in the past 35 years
Adding all five factors up gets you to its roughly 5% per year annual revenue growth.
Internationally, Deere's growth has come from a combination of inflation, share gains (largely taken from AGCO) and cropland growth in South America.
Margins
In the summer of 2000, Robert Lane was appointed as Chairman and CEO of Deere. He quickly implemented a new compensation scheme, known as SVA (Shareholder Value Added). This policy aimed to improve returns on capital by improving Deere's capital efficiency and taking advantage of Deere's strong position in the duopolistic North American large agriculture equipment market.
The best way to get a glimpse at the profit power of Deere's North American large agricultural equipment business is to compare Deere's domestic margins to the company's international margins and also compare Deere's "Ag & Turf" margins to its "Construction" margins.
My read of this is as follows:
1) The North American Construction market is much more competitive than the North American large agricultural equipment market.
2) Deere's international businesses, both Construction and Ag & Turf, have high competition, so Deere's margins internationally are structurally lower across all business lines.
The conclusion is that Deere's true significant margin advantage lies in the company's North American large agriculture equipment market.
How can we attempt to isolate just how high these margins might be today?
Deere does not break out its North American and international businesses by business line. But we know that the construction business has been about 20-25% of total revenue over the past ten years and we know it has lower margins than the Ag & Turf business.
So let's assume that 20% of Deere's North American business is also Construction and that the Construction business operates with similar margins in North America as internationally.
We can now strip out Construction revenues and margins from the reported North American segment to attempt to isolate Deere's North American Ag & Turf margins.
North America Agriculture business accounts for approximately two-thirds of all of Deere's profits!
This is an estimate, of course. But it not only seems well-reasoned and likely very close to the mark, it also makes intuitive sense.
We know that Deere's construction business and the company's international business are both significantly more competitive than the North America large agriculture equipment market. It follows that most of the price increases Deere implemented that actually permanently "stuck" were in the duopoly market where Deere is dominant.
Stated another way, Deere's margins on Ag equipment are several hundred basis points higher in North America than internationally, owing to the duopolistic nature of the market and Deere's aggressive price increases taken since 2001.
Let's have a look at Deere's company-wide price increases, compared to inflation, since Robert Lane implement Shareholder Value Added in 2000/2001:
1) The disclosure of price increases used above generally applied to the entire company, whereas Blue Pacific believes North America large agriculture equipment experienced a disproportionate amount of the price increases.
2) Manufacturing processes over time become more efficient, so the price of products need not rise at the rate of inflation to maintain constant margins and returns on capital.
As a result of the above analysis, Blue Pacific believes the North America large agriculture equipment market is operating with very high margins and very high returns on capital, perhaps unsustainably so.
As alluded to at the beginning of the article, sometimes businesses get carried away and take their incumbent competitive power too far. How can we know if this has happened in the case of Deere?
Enter Competition
Kubota, a significant Japanese manufacturer of construction equipment and small agriculture equipment, has recently decided to enter both the North America and global large agriculture equipment market.
For those unfamiliar with Kubota, I highly advise you read a handful of their annual reports (they are available in English) from the past several years. Kubota is a very serious competitor that has been highly successful and has excellent products.
I think of Kubota's entry into this market as similar to when Japanese auto manufacturers entered the North America automobile market.
In 2013, Kubota announced they would start with a 170HP tractor with the goal of going larger and larger until they can compete head-on with Deere. See below for an excerpt from page 17 of Kubota's 2015 Annual Report (and note that their first attempt is already award-winning):
1) "Masumoto wants Kubota to become the world's top producer of farm equipment by overtaking Deere in the long term. 'Ten years from now, we want to be seen as a real threat to Deere,' the president said."
2) "This launch will send a strong message to the market," says Masatoshi Kimata, President of Kubota Corporation. "We are not just a small tractor company anymore."
3) "With the Kubota M7, we've set in motion a strategy for full-scale entry into new markets, setting our sights on commercial livestock and row-crop production customers, and readying Kubota to compete with other big players in the field," said Todd Stucke, Kubota vice president, agriculture and turf division.
4) "Of course our product line is in no way complete. Having now made a 170bhp class tractor, our next goal is to make a 250bhp heavy weight."
5) "Q: What was it like to finally roll out the large tractors that you and Masumoto always dreamed about? A: When we approached dealers in Europe and North America about our new tractors, it was well received. So much so that the current orders in North America are far beyond what we were expecting."
Impact to Deere's Long-Term Value
As noted earlier, over half of Deere's domestic revenue growth over the past 30 years was from market share gains. Deere presently has market share somewhere in the 60s and Blue Pacific believes the North America large agriculture equipment market enjoys very high margins and very high returns on capital.
Kubota has a long-term strategy for entering the market. Kubota will probably not be a formidable competitor within the next five years (although their indicated M-Series production targets suggest they may be aiming for ~5% market share by 2018). Rather, Kubota's impact will likely be felt over the next five to ten years and beyond.
But Blue Pacific believes this risk may have a significant impact on Deere's value today, for the following reasons:
1) As described above, Kubota is targeting Deere's most profitable business. Blue Pacific believes the terminal value of Deere in a discounted cash flow analysis is materially lower, if Deere's North America Ag & Turf business has margins similar to its other business.
2) Blue Pacific believes the next 3-5 years will be incredibly challenging for the North America large agriculture equipment market, so a disproportionate amount of Deere's value lies in the "out years".
Again, Blue Pacific believes these estimates are conservative, as they only penalize Deere for margins and not for revenue concessions from lost market share. Presumably, if Kubota is able to achieve market share of, say 15%, in ten years' time, some of this gain will come at the expense of Deere. North America is not a growth market, which means that Deere's unit volume will necessarily be lower in the future if Kubota is successful in their efforts.
Conclusion
Blue Pacific believes Deere faces significant long-term business risks as the result of a powerful new competitor entering its market. It will take time for Kubota to have a significant impact on the North America large agriculture equipment market, but Kubota is not a competitor to be underestimated.
Kubota presently has over 1,100 equipment dealers in the United States supporting their construction and small agriculture equipment business. Kubota's largest and newest tractor, the M7 170HP, is arriving at dealers in North America for the first time this week.
While Kubota's journey will be long, Blue Pacific believes the extremely high margins and high returns on capital in the North America large agriculture equipment market adequately incentivize and will support Kubota's successful entry into the market as a formidable competitor.
See also The Benefits And Drawbacks Of Market Tranquility 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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During the last agriculture boom in the 1970s and subsequent bust in the 1980s, there were several tractor manufacturers: International Harvester, New Holland, Ford, Deere, Massey-Ferguson and a handful of other smaller players. Conclusion Blue Pacific believes Deere faces significant long-term business risks as the result of a powerful new competitor entering its market. Businesses can become permanently impaired, relative to their prior position, as a result of a couple primary leading causes: 1) Increasing competition (think American Express vs Visa / MasterCard, Gillette Razors vs Dollar Shave Club etc., IBM & Microsoft vs Google & Apple, Circuit City vs Amazon, Borders Bookstores vs Amazon, etc.)
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Farm-equipment.com has estimated Deere today has a nearly 2/3 share of the North American Market, with Case IH / New Holland taking up largely the rest: Deere's Revenue Growth Over the past 30 years, Deere's domestic revenue has grown at ~5% annual growth rate, while Deere's international revenue has grown at a 6% annual growth rate. This policy aimed to improve returns on capital by improving Deere's capital efficiency and taking advantage of Deere's strong position in the duopolistic North American large agriculture equipment market. The best way to get a glimpse at the profit power of Deere's North American large agricultural equipment business is to compare Deere's domestic margins to the company's international margins and also compare Deere's "Ag & Turf" margins to its "Construction" margins.
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Farm-equipment.com has estimated Deere today has a nearly 2/3 share of the North American Market, with Case IH / New Holland taking up largely the rest: Deere's Revenue Growth Over the past 30 years, Deere's domestic revenue has grown at ~5% annual growth rate, while Deere's international revenue has grown at a 6% annual growth rate. The best way to get a glimpse at the profit power of Deere's North American large agricultural equipment business is to compare Deere's domestic margins to the company's international margins and also compare Deere's "Ag & Turf" margins to its "Construction" margins. Deere presently has market share somewhere in the 60s and Blue Pacific believes the North America large agriculture equipment market enjoys very high margins and very high returns on capital.
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Farm-equipment.com has estimated Deere today has a nearly 2/3 share of the North American Market, with Case IH / New Holland taking up largely the rest: Deere's Revenue Growth Over the past 30 years, Deere's domestic revenue has grown at ~5% annual growth rate, while Deere's international revenue has grown at a 6% annual growth rate. We know that Deere's construction business and the company's international business are both significantly more competitive than the North America large agriculture equipment market. It will take time for Kubota to have a significant impact on the North America large agriculture equipment market, but Kubota is not a competitor to be underestimated.
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3ee8afcf-8092-45a4-888e-6192c278b68e
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722664.0
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2016-03-17 00:00:00 UTC
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Caterpillar Warns on Its Weak Start to 2016
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DE
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https://www.nasdaq.com/articles/caterpillar-warns-its-weak-start-2016-2016-03-17
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Image source: Caterpillar.
Investors have had to deal with tough conditions in the heavy-industry segment of the global economy for years, and Caterpillar has been one of the hardest-hit companies in the industry. Caterpillar's sales dwarf those of peers Deere and Joy Global , and unlike the more focused businesses Deere has with agricultural equipment, and Joy Global has with mining equipment, Caterpillar seeks to serve customers in a wide range of industries.
Thursday morning, Caterpillar issued an early outlook on its first-quarter financial performance that once again fell short of what investors had expected to see. That poor guidance raises new questions about when investors can expect a cyclical turnaround from the heavy-equipment maker. Let's look more closely at what Caterpillar said today and what impact it could have in the long run.
What Caterpillar said
At a conference in London early Thursday, Caterpillar gave initial guidance for its expected first-quarter 2016 results. First-quarter revenue is expected to be between $9.3 billion and $9.4 billion, which would represent about a 10% shortfall compared to the current consensus forecast among investors for $10.36 billion. Even worse, earnings guidance of $0.50 to $0.55 per share could fall short by as much as half from what investors were hoping to see from Caterpillar this quarter. Even after factoring in about $0.15 per share in restructuring costs, Caterpillar's bottom-line results won't live up to what shareholders wanted.
The disturbing part of Caterpillar's downbeat guidance is that it comes in the face of expectations that already reflected the extremely difficult conditions the company is working to overcome. If the new guidance is correct, first-quarter earnings could fall 70% to 75% from year-ago levels, and revenue declines could be off by more than 25%.
Keeping a positive mind-set
Even with the immediate concerns Caterpillar investors have, the company is maintaining an upbeat philosophy. As the company's presentation noted, Caterpillar is focusing on execution even as it deals with a tough environment. Its primary focus is on growth, and moves to increase spending on research and development while streamlining its operations should serve to improve results both now and into the future.
Digital initiatives have become more important in the industry, and just as Deere is working to take advantage of Internet of Things initiatives to make equipment more useful for its agricultural customers, Caterpillar believes it can take steps to stay at the cutting edge of innovation with its equipment in a broader array of uses. Caterpillar highlighted the fact that it has improved its position in the machinery market for five years in a row, taking advantage of weak times to boost market share and set itself up for greater long-term success.
Perhaps more importantly to shareholders, Caterpillar did not take the opportunity to change its guidance for the full 2016 year. Instead, the company reiterated those figures, which include a sales range of $40 billion to $44 billion and earnings of $3.50 to $4 per share.
Some recent signs could help support the bull argument for Caterpillar this year. The dollar's strength has started to give way to flatter performance, and currencies in resource-dependent countries like Canada and Australia have bounced back substantially from their lowest levels in 2015. Commodity prices have also climbed from their multi-year lows, and both Caterpillar and Joy Global have seen their shares rise as a result because of their exposure to the now-soaring mining industry. Similarly, prospects for agriculture look like they could improve, and that has lifted Deere as well.
Caterpillar still has a long way to go before it can declare victory and give shareholders the long-term returns they had gotten used to prior to the global economic slowdown. By taking necessary steps now, though, Caterpillar is getting into position to benefit when the tide does turn in its favor.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
The article Caterpillar Warns on Its Weak Start to 2016 originally appeared on Fool.com.
Dan Caplinger has no position in any stocks mentioned. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The dollar's strength has started to give way to flatter performance, and currencies in resource-dependent countries like Canada and Australia have bounced back substantially from their lowest levels in 2015. Investors have had to deal with tough conditions in the heavy-industry segment of the global economy for years, and Caterpillar has been one of the hardest-hit companies in the industry. Caterpillar's sales dwarf those of peers Deere and Joy Global , and unlike the more focused businesses Deere has with agricultural equipment, and Joy Global has with mining equipment, Caterpillar seeks to serve customers in a wide range of industries.
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Caterpillar's sales dwarf those of peers Deere and Joy Global , and unlike the more focused businesses Deere has with agricultural equipment, and Joy Global has with mining equipment, Caterpillar seeks to serve customers in a wide range of industries. The Motley Fool is short Deere & Company. Investors have had to deal with tough conditions in the heavy-industry segment of the global economy for years, and Caterpillar has been one of the hardest-hit companies in the industry.
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Investors have had to deal with tough conditions in the heavy-industry segment of the global economy for years, and Caterpillar has been one of the hardest-hit companies in the industry. Caterpillar's sales dwarf those of peers Deere and Joy Global , and unlike the more focused businesses Deere has with agricultural equipment, and Joy Global has with mining equipment, Caterpillar seeks to serve customers in a wide range of industries. Even after factoring in about $0.15 per share in restructuring costs, Caterpillar's bottom-line results won't live up to what shareholders wanted.
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Investors have had to deal with tough conditions in the heavy-industry segment of the global economy for years, and Caterpillar has been one of the hardest-hit companies in the industry. Caterpillar's sales dwarf those of peers Deere and Joy Global , and unlike the more focused businesses Deere has with agricultural equipment, and Joy Global has with mining equipment, Caterpillar seeks to serve customers in a wide range of industries. The Motley Fool is short Deere & Company.
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c83a13df-f1b6-4d8a-b129-904d5f0267f0
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722665.0
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2016-03-16 00:00:00 UTC
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3 Warren Buffett Stocks to Buy in March
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DE
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-buy-march-2016-03-16
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GM data by YCharts
Right now, GM is trading at a little more than five times its 2015 earnings. Granted, if we're really at the peak of auto sales around the world, GM's profits might dip a bit over the next couple of years.
But here's the thing: GM CEO Mary Barra has the General on track for a big bottom-line boost by early next decade. Her plan has several parts, but the goal is to get GM's adjusted pre-tax margins consistently into the 9% to 10% range. (It was 7.1% in 2015.)
After meeting GM CEO Mary Barra, Buffett and his team bought 50 million shares of GM -- and Buffett bought himself a new Cadillac.
Source: General Motors.
The plan has several key components (you can read more about it here), but the big takeaway is this: It's credible, it's backed by a long-term commitment from GM's board and management team, it anticipates Silicon-Valley-style disruption of the global auto business (and aims to put GM in a leadership position for the long-term), and it's already working.
Long story short: If you want to buy a good company for long-term growth at a good price, General Motors sure looks like one. You might have to wait a while before the big changes are fully realized -- but with a dividend yield that's right around 4.8% at current prices, you'll get paid pretty well for your patience.
Sean Williams : One of the more attractive companies in Buffett's portfolio is one he recently pulled the trigger on - midstream giant Kinder Morgan (NYSE: KMI).
Kinder Morgan has been pummeled recently by weakness in the natural gas market (Kinder Morgan gather, stores, transports, and refines natural gas and liquid natural gas), as well as oil price weakness. The fear being that if low prices are here to stay, then oil and gas drillers may start to go under and production could be reduced. A company like Kinder that relies on transportation, storage, and refining contracts certainly wouldn't want to see a substantial reduction on fossil fuel recoveries. Adding icing on the cake, Kinder Morgan also slashed its dividend by 74% in December to preserve cash while it continues to grow and deal with its highly levered balance sheet.
But most investor worries seem a bit overblown. For instance, the vast majority of contracts Kinder Morgan is working with are long-term in nature. This means we're talking about predictable production levels and cash flow, which is important when working with $43 billion in debt. Over the trailing 12 months alone operating cash flow totaled $5.3 billion thanks to its long-term deals.
Another intriguing long-term aspect of Kinder Morgan is that demand for natural gas is only expected to rise in the U.S. and around the globe. The 2015 Annual Energy Outlook from the U.S. Energy Information Administration projects at the midpoint that dry natural gas production will grow from 24.4 Tcf in 2013 to 35.5 Tcf by 2035, or 45%. Viewed as a cleaner burning fuel than coal, we've witnessed U.S. electric utilities making the switch from coal-fired plants to natural gas, both in lieu of the cost-savings as well as EPA regulations.
Buffett, being all about the big picture, likely views the recent decline in Kinder Morgan as an overreaction. If these estimates hold water, then natural gas is going to play a vital role in the U.S.'s future, with Kinder Morgan reaping handsome rewards. In the meantime, Kinder Morgan shareholders can sit back and collect a 2.7% dividend yield until presumed sensibility takes hold.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early-in-the-know investors! To be one of them, just click here .
The article 3 Warren Buffett Stocks to Buy in March originally appeared on Fool.com.
John Rosevear owns shares of General Motors. Sean Williams has no position in any stocks mentioned. Todd Campbell has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Kinder Morgan. The Motley Fool is short Deere & Company and has the following options: short June 2016 $12 puts on Kinder Morgan. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Sean Williams : One of the more attractive companies in Buffett's portfolio is one he recently pulled the trigger on - midstream giant Kinder Morgan (NYSE: KMI). Adding icing on the cake, Kinder Morgan also slashed its dividend by 74% in December to preserve cash while it continues to grow and deal with its highly levered balance sheet. But here's the thing: GM CEO Mary Barra has the General on track for a big bottom-line boost by early next decade.
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Kinder Morgan has been pummeled recently by weakness in the natural gas market (Kinder Morgan gather, stores, transports, and refines natural gas and liquid natural gas), as well as oil price weakness. The Motley Fool owns shares of and recommends Kinder Morgan. But here's the thing: GM CEO Mary Barra has the General on track for a big bottom-line boost by early next decade.
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The plan has several key components (you can read more about it here), but the big takeaway is this: It's credible, it's backed by a long-term commitment from GM's board and management team, it anticipates Silicon-Valley-style disruption of the global auto business (and aims to put GM in a leadership position for the long-term), and it's already working. Kinder Morgan has been pummeled recently by weakness in the natural gas market (Kinder Morgan gather, stores, transports, and refines natural gas and liquid natural gas), as well as oil price weakness. The Motley Fool is short Deere & Company and has the following options: short June 2016 $12 puts on Kinder Morgan.
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Kinder Morgan has been pummeled recently by weakness in the natural gas market (Kinder Morgan gather, stores, transports, and refines natural gas and liquid natural gas), as well as oil price weakness. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. But here's the thing: GM CEO Mary Barra has the General on track for a big bottom-line boost by early next decade.
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2016-03-15 00:00:00 UTC
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10 Cinderella Stocks to Buy for 2016
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
March Madness is upon us, and nothing makes for a better tournament than when a Cinderella team or two makes it deep in the bracket.
Source: Flickr
The same goes for beaten-down stocks. After all, what's better than seeing your portfolio beat the market at the end the year thanks to stocks everyone else gave up on?
But if you thought it was hard to fill out a winning bracket, finding Cinderella stocks to buy isn't far behind. There's a reason why stocks hit hard times, be it fundamental weakness, poor sentiment or maybe a secular decline in a company's business.
Sure, the wisdom of crowds is often wrong - that's how stocks get mis-priced in the first place - but sometimes it's spot on. Stocks can be cheap because they're misunderstood. Just as often, they're cheap for a reason.
It's not hard to find seemingly good stocks generating disappointing returns recently. Last year was a wash for equities and so far this year they're down. When the market is working against you, would-be Cinderella stocks are more likely to turn into pumpkins than year-end winners.
10 Sickly Stocks You Need to Thin From the Herd
That said, there are a number of out-of-favor names that might just shock the Street this year. The odds are long, but don't be too surprised if these stocks turn out to be champions this year.
Cinderella Stocks to Buy: Ford Motor Company (F)
Ford Motor ( F ) keeps printing upbeat news and yet shares are down about 7% for the year-to-date and 20% over the past 52 weeks.
Partly that's due to weakness in China, Europe and other international markets … but it doesn't really explain why F is so cheap.
After all, at the same time, Ford is seeing record results in North America , driven by demand for the new aluminum-bodied F-150 pickup truck. That demand helped spark an eight-year high in November sales for F-series trucks .
The market is worried about Ford hurting margins with promotions, as well as the creditworthiness of customers. However, if it can shrug some of that off, look out.
Cinderella Stocks to Buy: Deere & Company (DE)
Deere & Company ( DE ) is getting hammered by forces well beyond its control, as the global slump in commodity prices is hurting demand for things like tractors and other heavy machinery.
As a result, Deere suffered a terrible 2015 that saw DE shares drop 15%.
Long-term trends of population growth and other factors a great for DE on a fundamental basis, but the short-term is forecast to be one of more pain. Indeed, earnings this year are expected to plunge from $5.77 per share to $4.09 per share.
However, it's possible that the market has overdone it with the valuation, especially because it has had some time to digest the low estimates.
7 Stocks to Buy That Wall Street Is GROSSLY Underestimating
DE is up 6% this year, and cost cuts and the stirrings of improvement in emerging markets could make DE a darkhorse winner this year.
Cinderella Stocks to Buy: Expedia Inc (EXPE)
Expedia Inc ( EXPE ) is one of the biggest players in the online travel market, but that's not as impressive as it sounds.
Heavy competition from Priceline ( PCLN ) in a highly fragmented industry makes it tough to grab market share, even with expensive acquisitions. With margins under pressure because of global expansion, EXPE is off to a weak start this year.
However, even though EXPE is down 7% YTD, it has been showing strong signs of life.
Indeed, Piper Jaffray recently slapped a call of "overweight" (buy, essentially) on the stock . With a price target of $140 a share, analysts see implied upside of about 20%.
Cinderella Stocks to Buy: Aeropostale Inc (ARO)
Cinderella, the ugly duckling, that troll under the bridge, take your pick: Aeropostale Inc ( ARO ) has been garbage for some time now.
ARO has tarnished its brand with hopelessly out of fashion stores and apparel. Meanwhile, mall traffic is in decline . There's a reason why shares have lost nearly 85% of their value in just the past 52 weeks.
And yet there remains the faintest sign of a turnaround taking shape as cost-cutting buys the retailer time.
Aeropostale announced it would be cutting about 100 jobs in a broader cost-cutting effort that should save the company some $35 million to $45 million annually.
Aeropostale: 1 of 5 Penny Stocks to Buy Now
True, ARO is up 65% for the year-to-date already, but at about 46 cents a share, it's still a penny stock. This name is as much of a long shot as any.
General Electric Company: General Electric Company (GE)
General Electric Company ( GE ) is in the midst of a massive, high-risk transformation that's going to make a mess of the income statement for a couple years to come.
Jettisoning the financial business to become a pure-play industrial makes a lot of sense, but it's hard to go forward without GE Capital's major contributions to revenue and earnings.
Investors also have to look past restructuring charges and all sorts of "adjusted" metrics and results.
Skepticism has GE stock down more than 3% so far this year, but it's primed for a rebound as the market gains confidence that it can pull this whole thing off.
Not only that, but investors have to at least be getting more comfortable with General Electric's dividend, which went bye-bye during the financial crisis but has come roaring back in the past few years. GE currently yields 3%, even with the stock at multiyear highs.
Cinderella Stocks to Buy: General Motors Company (GM)
Like Ford, General Motors Company ( GM ) can't get no respect.
GM stock is down 9% YTD even as the automaker, again like Ford, generated record sales and profits. Meanwhile, General Motors' outlook is more than fine, and shares are cheap.
And it's not just U.S. car sales that are boosting GM results. China might be hurting most multinationals, but it has been a big driver of growth for the automaker .
One persistent worry is that too much industry sales growth is being driven by subprime loans. But if the risks are already factored into GM stock, upside could abound.
9 Monthly Dividend Stocks to Help Pay Monthly Bills
GM also has a huge pull in the form of a nearly 5% dividend at current prices.
Cinderella Stocks to Buy: HCP, Inc. (HCP)
HCP, Inc. ( HCP ) is a real estate investment trust that's a member of the S&P Dividend Aristocrats. But that doesn't matter when such a big chunk of its revenue is in trouble.
One knock on HCP is that it has high customer concentration, and the way the stock has been going, it's a fair criticism. HCP generates about 25% of it revenue from HCR ManorCare and another 10% from Brookdale . Both businesses are struggling, with HCR ManorCare embroiled in a Justice Department investigation, and the latter facing occupancy declines.
Shares are down 16% for the year-to-date, more than swamping any return from the fat 7% dividend yield.
However, HCP still is positioned in the lucrative healthcare market, and it has strong occupancy rates among many of its other tenants. Meanwhile, it's the only REIT in the S&P 500 Dividend Aristocrats Index, holding a dividend increase streak that it's unlikely to let slip without a real effort.
If HCP can come back, it will be a Cinderella story for sure.
Cinderella Stocks to Buy: Home Depot Inc (HD)
Home Depot Inc ( HD ) has been one the best megacap stocks throughout the bull market but it can't gain traction in 2016. HD stock is down 2%, which actually lags the S&P 500 .
It's hard to see how that lasts long. For all the worries about recession, the evidence is pretty unconvincing, and aside of a slowdown, there's little reason to worry about HD's growth.
Unemployment is down, wages are ticking up and the housing market continues to mend.
5 of Warren Buffett's Best Stocks to Buy and Hold
Moreover, some folks are sprucing up their homes because they can't move. Others are getting ready to put their homes on the market. Either way, HD benefits.
Cinderella Stocks to Buy: Pfizer Inc. (PFE)
Pfizer Inc. ( PFE ) is is down 8% so far this year and it's easy to see how it could stay there.
Revenue growth is hard to come by when sales of blockbuster drugs are in decline and the strong dollar is clipping overseas sales. There's nothing really compelling going on here.
But PFE does have some very promising drugs in its pipeline. It could also reap the benefits of its recent acquisitions tear sooner than expected. The big windfall could come via its $160 billion merger with Allergan ( AGN ), and Pfizer went so far as to call the combined pipeline "underappreciated."
And even if PFE doesn't have a Cinderella turn this year, the dividend yield of 3.9% makes it a fine long-term equity income play.
Cinderella Stocks to Buy: Wells Fargo & Co (WFC)
Wells Fargo & Co ( WFC ) has a lot more going for it than against it even though shares have become serious laggards.
The nation's biggest bank by market cap is off 9% YTD even though the economy appears to be gaining some steam. Banks just can't catch a break.
The Federal Reserve has begun a rate-hike cycle, and that works both ways for banks. It hurts lending and mortgage underwriting, but it also boosts net interest margins.
5 Great Stocks for the Future of Fintech
If you're a bull on the economy, you've got to like WFC. Rates aren't going up if the economy doesn't, and a growing economy is going to take financial stocks along for the ride.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.
The post 10 Cinderella Stocks to Buy for 2016 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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There's a reason why stocks hit hard times, be it fundamental weakness, poor sentiment or maybe a secular decline in a company's business. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips March Madness is upon us, and nothing makes for a better tournament than when a Cinderella team or two makes it deep in the bracket. But if you thought it was hard to fill out a winning bracket, finding Cinderella stocks to buy isn't far behind.
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Cinderella Stocks to Buy: Deere & Company (DE) Deere & Company ( DE ) is getting hammered by forces well beyond its control, as the global slump in commodity prices is hurting demand for things like tractors and other heavy machinery. Cinderella Stocks to Buy: General Motors Company (GM) Like Ford, General Motors Company ( GM ) can't get no respect. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips March Madness is upon us, and nothing makes for a better tournament than when a Cinderella team or two makes it deep in the bracket.
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Cinderella Stocks to Buy: General Motors Company (GM) Like Ford, General Motors Company ( GM ) can't get no respect. Cinderella Stocks to Buy: Home Depot Inc (HD) Home Depot Inc ( HD ) has been one the best megacap stocks throughout the bull market but it can't gain traction in 2016. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips March Madness is upon us, and nothing makes for a better tournament than when a Cinderella team or two makes it deep in the bracket.
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Indeed, earnings this year are expected to plunge from $5.77 per share to $4.09 per share. And even if PFE doesn't have a Cinderella turn this year, the dividend yield of 3.9% makes it a fine long-term equity income play. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips March Madness is upon us, and nothing makes for a better tournament than when a Cinderella team or two makes it deep in the bracket.
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2016-03-15 00:00:00 UTC
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The 5-Minute Guide to Deere & Company's Stock
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Image Source: Deere & Company corporate website
Deere & Company (NYSE: DE) , the maker of those iconic green and yellow tractors like the ones above, has a place in American culture right up there with the big yellow construction equipment maker Caterpillar (NYSE: CAT). If you're thinking about investing in Deere, however, you need to know a few things about how the company makes a buck.
Deere & Co. logo. Source: Deere & Co
John Deere
The farm equipment John Deere sells is the driving force behind Deere's financial results. Agricultural equipment sales account for roughly 75% of the company's equipment sales (about 65% of total revenues). Still, the remaining 25% of equipment sales (around 20% of the top line) goes into the construction and forestry industries. This is noteworthy because it pits the company up against some stiff competition, like Caterpillar, and shows that Deere isn't just a tractor company.
The company also has a large finance arm. This division makes loans to support the sale of Deere products, so you shouldn't have to worry about some finance black hole that breaks the company apart like what happened to General Electric during and after the 2007 to 2009 financial-led recession. But this is a big and important business for the company. It accounts for about 10% of total revenues ("other" makes up the balance, if you are trying to get to 100%).
In reality, the impact of the finance arm is much bigger than that 10%. Deere sells giant, expensive equipment. If Deere didn't provide financing for what it sells, it would struggle to sell equipment. But the big picture here is that Deere is really in three different businesses: farm equipment, construction/forestry equipment, and finance. And each are pretty important to the top and bottom lines.
Wax and wane
Deere's sales will ebb and flow with broader economic conditions, and the specific trends within its core markets. The biggest impact, obviously, will be from the farm side of the business.
But Deere operates around the world, so it isn't just the U.S. farm belt that you'll need to watch. About 35% of the company's equipment sales come from outside the U.S. and Canadian markets. In other words, global growth and demand is an important factor to watch, too.
Deere's global footprint. Source: Deere & Co.
The company's key end market, farms, often sell commodities into global markets, like wheat. So even if the U.S. is doing well economically, it's possible for farm commodities to be weak. In that case, Deere's customers won't have as much money to spend on new equipment. Deere's business is cyclical, and may or may not move along with the U.S. market.
Right now is a pretty rough time to sell big machines. Deere's equipment sales, for example, were down 22% in 2015. And the first quarter of 2016 didn't change that downtrend. But as you'd expect, Deere isn't alone in this. Cat's equipment revenues fell 15% last year, with the company projecting further declines for 2016.
Costly businesses
But here's the thing: Building big tractors and the like is an expensive endeavor. For example, although equipment sales were down 22% at Deere last year, earnings were down slightly more than 40%. The same thing happened with Cat, which saw earnings decline nearly 30% on a 15% decline in equipment revenue.
There's obviously other factors involved, like the mix of equipment that's getting sold, but the big picture here is that Deere and Cat have to support operations with lots of fixed costs. The more that gets sold, the more profitable they'll be. On the flip side, however, slowing sales can really start to hurt the bottom line pretty quickly.
Don't forget the impact of changes in the commodities that Deere uses, either. Steel, for example, is a key building block when it comes to tractors and the like. Commodities across the globe are fairly cheap right now, so this isn't too much of an issue. But if iron ore prices were to head higher, it would have a direct impact on Deere's profitability.
There's another commodity that's worth paying attention to, as well: dollars. That's because Deere translates foreign sales back into U.S. dollars. With 35% of its sales overseas, this isn't an insignificant issue. The strong dollar right now is a notable headwind to watch. But currencies wax and wane, and this headwind could just as easily turn into a positive in the future. So pay attention, but don't get overly caught up on this one.
A far cry from a horse and plow. Source: Deere & Co.
Technology?
There's one more issue you need to get a handle on when looking at Deere, and that's technology. Farm equipment is increasingly complex, and like everything else in life, computerized. Turning tractors into high-tech farm equipment is, and has to be, a key priority for Deere. That includes everything from full-on, self-driving tractors to the less-fanciful integration of GPS positioning systems for humans to use to increase the precision of their planting efforts.
The issue is that Deere has to keep up with the changing face of technology if it wants to maintain its position as a leading equipment provider. You shouldn't think of Deere as a low-tech machinery maker; it's increasingly going high tech because farms are increasingly high tech.
Who knew!
Next time you drive by a farm and see one of Deere's tractors, don't just bask in the thought of an American icon. Deere is much more complex than that. That means investing in Deere requires understanding the types of products the company sells, the global markets it serves, the costs it faces, and the future it has to prepare for.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article The 5-Minute Guide to Deere & Company's Stock originally appeared on Fool.com.
Reuben Brewer has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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This division makes loans to support the sale of Deere products, so you shouldn't have to worry about some finance black hole that breaks the company apart like what happened to General Electric during and after the 2007 to 2009 financial-led recession. There's obviously other factors involved, like the mix of equipment that's getting sold, but the big picture here is that Deere and Cat have to support operations with lots of fixed costs. That means investing in Deere requires understanding the types of products the company sells, the global markets it serves, the costs it faces, and the future it has to prepare for.
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Image Source: Deere & Company corporate website Deere & Company (NYSE: DE) , the maker of those iconic green and yellow tractors like the ones above, has a place in American culture right up there with the big yellow construction equipment maker Caterpillar (NYSE: CAT). Source: Deere & Co John Deere The farm equipment John Deere sells is the driving force behind Deere's financial results. If you're thinking about investing in Deere, however, you need to know a few things about how the company makes a buck.
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Image Source: Deere & Company corporate website Deere & Company (NYSE: DE) , the maker of those iconic green and yellow tractors like the ones above, has a place in American culture right up there with the big yellow construction equipment maker Caterpillar (NYSE: CAT). Source: Deere & Co John Deere The farm equipment John Deere sells is the driving force behind Deere's financial results. But the big picture here is that Deere is really in three different businesses: farm equipment, construction/forestry equipment, and finance.
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But the big picture here is that Deere is really in three different businesses: farm equipment, construction/forestry equipment, and finance. Deere's equipment sales, for example, were down 22% in 2015. Image Source: Deere & Company corporate website Deere & Company (NYSE: DE) , the maker of those iconic green and yellow tractors like the ones above, has a place in American culture right up there with the big yellow construction equipment maker Caterpillar (NYSE: CAT).
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2016-03-15 00:00:00 UTC
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Will Caterpillar's Big Buybacks Continue in 2016?
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Image source: Caterpillar.
Investors like companies that return capital to shareholders through stock buybacks, but they're used to seeing companies make big repurchases when they're doing particularly well. That leaves heavy-equipment manufacturer Caterpillar as an unusual case, because the company didn't make buybacks during some of its stronger years but started them up even once the business started doing poorly. Even as revenue has sagged, Caterpillar has decided that its stock is a good bargain and has ramped up buyback activity over the past few years. Let's take a closer look at what Caterpillar has done with buybacks and how it will act in the future.
An inconsistent history of buybacks for Caterpillar
Caterpillar's history of buyback activity has been sporadic. In the run-up to the financial crisis, Caterpillar made repurchases of its shares. But from 2009 to 2012, the company didn't spend a penny on buybacks. That made sense for during 2009 and 2010, as many companies in the industry hadn't yet fully recovered from the difficulties in the industry.
But as prices of mined products like gold and other precious metals kept climbing into 2011, one could have expected Caterpillar to reinstate its buyback program. Elsewhere in the industry, Deere took advantage of high farm prices to increase its buybacks dramatically from financial-crisis levels. Yet Caterpillar didn't follow Deere's example, choosing instead to increase its dividends as a way of returning capital to shareholders.
Buying shares at a bargain price
Instead, Caterpillar did what most investors would prefer companies do: It waited to implement buybacks when the stock was struggling. By 2013, Caterpillar had fallen back from its highs, as the construction, infrastructure, and mining industries had lost much of their economic strength. The energy industry was still going strong at that point, and Caterpillar saw the pullback as an opportunity to reduce its share count and improve its earnings per share.
By Jan. 2014, Caterpillar had completed a series of accelerated stock repurchase transactions to use up its 2007 authorization of $7.5 billion. The company then followed that completed buyback up with a new $10 billion authorization, which was set to run through the end of 2018. Further accelerated repurchases of $2.5 billion in July 2014 stepped up the pace of Caterpillar's return of capital to shareholders, and the company ended up spending another $2 billion on buybacks in 2015.
Can Caterpillar keep buying back stock?
Late last year, Caterpillar executives addressed whether the company would continue to buy back stock in 2016 and beyond. The equipment maker has several priorities for using its cash, and the company reiterated that its first priority is to keep its balance sheet as healthy as possible to ensure that it can survive through difficult industry conditions. The second priority is growth, and so if opportunities arise for the company to invest money in ways that can bolster internal prospects, then investors should be prepared for it to do so.
Beyond that, Caterpillar explicitly said that dividends are a key component of its capital allocation strategy, and the company also wants to make sure that it has funded its pension obligations sufficiently. Finally, Caterpillar said that buybacks come last, and the company chose not to provide a forecast of what it will do with repurchases in the future.
Investors need to understand Caterpillar's history of stock repurchases to put things like its current $10 billion authorization in context. It took the company years to use up its previous $7.5 billion, and it's unlikely that Caterpillar will be in a hurry this time around either. Investors should therefore look more at whether Caterpillar can recover and take advantage of future opportunities for growth rather than focusing on the prospect for stock repurchases in the near future.
The Stupid Simple Way to Score a 22% Dividend
There's nothing better than cold, hard cash. That's why the savviest investors are using 5 simple dividend "tricks" to unlock the mountains of cash stocks are delivering to investors on a silver platter. to learn how you could score your cut of the profits too!
The article Will Caterpillar's Big Buybacks Continue in 2016? originally appeared on Fool.com.
Dan Caplinger has no position in any stocks mentioned. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Beyond that, Caterpillar explicitly said that dividends are a key component of its capital allocation strategy, and the company also wants to make sure that it has funded its pension obligations sufficiently. Investors like companies that return capital to shareholders through stock buybacks, but they're used to seeing companies make big repurchases when they're doing particularly well. Even as revenue has sagged, Caterpillar has decided that its stock is a good bargain and has ramped up buyback activity over the past few years.
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Investors like companies that return capital to shareholders through stock buybacks, but they're used to seeing companies make big repurchases when they're doing particularly well. Further accelerated repurchases of $2.5 billion in July 2014 stepped up the pace of Caterpillar's return of capital to shareholders, and the company ended up spending another $2 billion on buybacks in 2015. Even as revenue has sagged, Caterpillar has decided that its stock is a good bargain and has ramped up buyback activity over the past few years.
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Investors like companies that return capital to shareholders through stock buybacks, but they're used to seeing companies make big repurchases when they're doing particularly well. Even as revenue has sagged, Caterpillar has decided that its stock is a good bargain and has ramped up buyback activity over the past few years. In the run-up to the financial crisis, Caterpillar made repurchases of its shares.
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Investors like companies that return capital to shareholders through stock buybacks, but they're used to seeing companies make big repurchases when they're doing particularly well. Even as revenue has sagged, Caterpillar has decided that its stock is a good bargain and has ramped up buyback activity over the past few years. In the run-up to the financial crisis, Caterpillar made repurchases of its shares.
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2016-03-15 00:00:00 UTC
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3 Short Squeeze Plays: Fastenal Company (FAST), Deere & Company (DE) and Darden Restaurants, Inc. (DRI)
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https://www.nasdaq.com/articles/3-short-squeeze-plays%3A-fastenal-company-fast-deere-company-de-and-darden-restaurants-inc.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
What a difference a few weeks can make in the stock markets. The S&P 500 is now challenging its 2016 highs as short sellers are adding slowly to their bets against the market.
Click to Enlarge This combination means that there are more potential short squeeze opportunities for those of us ready to comb through the data.
This time around, our short squeeze models identified 34 S&P 500 companies that are set up for bullish moves based on their charts and recent short interest. This is by far the largest number of companies within the benchmark index that we've seen qualify for this list year-to-date - a reflection of the market's recent strength.
A word of caution, though: While this market has helped to raise all boats in the harbor, the market's internals and technical trends continue to suggest that the recent volatility storm is all but over.
5 Great Stocks for the Future of Fintech
That said, we've identified three short squeeze candidates that appear ready to outpace the market: Fastenal Company ( FAST ), Deere & Company ( DE ) and Darden Restaurants, Inc. ( DRI ).
Short Squeeze Stocks: Fastenal Company (FAST)
Low interest rates and continued activity in the real estate market continue to favor housing-related stocks like Fastenal. Year-to-date, Fastenal stock has led the market considerably, returning 15% and maintaining technical dominance.
Short interest on Fastenal stock is holding at its highest levels in more than two year as the bears keel trying to call a top in FAST - a costly mistake.
The 18.7 short interest ratio is excessive for almost any stock, but especially for one trading with the technical and relative strength that has carried Fastenal against the rest of the market.
Wall Street analysts' buy recommendations on Fastenal shares currently weigh in at a paltry 18%, with 80% of the same group sitting in the "hold" category. This indicates that the stock is far from representing a "crowded" trade, which good news for those holding or buying the shares now.
Watch for a break above $47.50 to slingshot Fastenal shares 10% higher to a short-term target of $52.50.
Short Squeeze Stocks: Deere & Company (DE)
Nothing runs like a Deere, right?
While Deere is sliding a bit of late, it's still breaking away from the market as it moves back into intermediate-term bull market territory on recent positive fundamental improvements. Short sellers are betting against a move into bull territory, as the short interest ratio is hovering near two-year highs at a hefty 9.1, meaning that any moves higher will start to squeeze the bears.
Analyst recommendations on Deere & Company stock are bearishly biased as only 17% of the analysts covering the stock have it ranked a buy. A move back into bull market territory will likely force some upgrades, helping to drive prices even higher.
6 Cheap Dividend Stocks You Can't Afford to Ignore
Watch for a break above $85 to trigger the next short covering rally for Deere & Company, with a target of $100.
Short Squeeze Stocks: Darden Restaurants, Inc. (DRI)
Darden has made its way to the short squeeze list multiple times over the last two years, each time resulting in great short squeeze results. This month, the casual dining giant makes its way back up the list as short sellers are again increasing their bearish bets.
Short interest in that latest report showed an increase of 10% on Darden stock, bring the number shares short on the stock to its highest level since November 2014! The short squeeze that occurred at that time shot DRI from $48 to $63 (31%) in a matter of six months.
The current short squeeze scenario looks very similar to the November 2014 signal as the stock is once again breaking through to new highs. Fundamentally, the restructuring of Darden - including the recent spinoff of Four Corners Property Trust Inc ( FCPT ) - is paying off to Darden's business and bottom line.
Of course, Wall Street is still sitting on the sidelines, with only 39% of the analysts tracking DRI rating it a buy. The strong technical breakout to new highs will shake some upgrades out of Wall Street, helping to fuel the short covering rally that is likely to drive Darden stock to the $80 level.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
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The post 3 Short Squeeze Plays: Fastenal Company (FAST), Deere & Company (DE) and Darden Restaurants, Inc. (DRI) 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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6 Cheap Dividend Stocks You Can't Afford to Ignore Watch for a break above $85 to trigger the next short covering rally for Deere & Company, with a target of $100. The strong technical breakout to new highs will shake some upgrades out of Wall Street, helping to fuel the short covering rally that is likely to drive Darden stock to the $80 level. This time around, our short squeeze models identified 34 S&P 500 companies that are set up for bullish moves based on their charts and recent short interest.
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5 Great Stocks for the Future of Fintech That said, we've identified three short squeeze candidates that appear ready to outpace the market: Fastenal Company ( FAST ), Deere & Company ( DE ) and Darden Restaurants, Inc. ( DRI ). The post 3 Short Squeeze Plays: Fastenal Company (FAST), Deere & Company (DE) and Darden Restaurants, Inc. (DRI) appeared first on InvestorPlace . This time around, our short squeeze models identified 34 S&P 500 companies that are set up for bullish moves based on their charts and recent short interest.
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5 Great Stocks for the Future of Fintech That said, we've identified three short squeeze candidates that appear ready to outpace the market: Fastenal Company ( FAST ), Deere & Company ( DE ) and Darden Restaurants, Inc. ( DRI ). Short Squeeze Stocks: Darden Restaurants, Inc. (DRI) Darden has made its way to the short squeeze list multiple times over the last two years, each time resulting in great short squeeze results. This time around, our short squeeze models identified 34 S&P 500 companies that are set up for bullish moves based on their charts and recent short interest.
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This time around, our short squeeze models identified 34 S&P 500 companies that are set up for bullish moves based on their charts and recent short interest. This is by far the largest number of companies within the benchmark index that we've seen qualify for this list year-to-date - a reflection of the market's recent strength. 5 Great Stocks for the Future of Fintech That said, we've identified three short squeeze candidates that appear ready to outpace the market: Fastenal Company ( FAST ), Deere & Company ( DE ) and Darden Restaurants, Inc. ( DRI ).
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b5485ba2-ca67-4012-be1f-c260d2fda48f
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722670.0
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2016-03-11 00:00:00 UTC
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Deere (DE) to Lay off 125 Employees Owing to Weak Demand
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DE
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https://www.nasdaq.com/articles/deere-de-to-lay-off-125-employees-owing-to-weak-demand-2016-03-11
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nan
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nan
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In the wake of weak market demand and to minimize the gap between production and demand, agricultural equipment maker, Deere & CompanyDE has announced an indefinite layoff of roughly 125 employees at two of its factories in Iowa.
The layoff at the Ankeny plant, which is part of Deere's agriculture and turf division, will become effective Apr 15. On the other hand, the Dubuque facility is included in the company's construction and forestry division, where the layoff there will be effective Apr 29.
Only last month, the company declared its decision to retrench approximately 100 manufacturing employees in its Davenport and Dubuque factories, effective Apr 1. In order to remain competitive, Deere continuously strives to align the size of its manufacturing workforce with the market demand for its products.
Notably, the news of these layoffs came on the heels of Deere's lackluster earnings results. The company reported a decline in both its top and bottom lines for the first quarter of fiscal 2016 (ended Jan 31, 2016) owing to sluggish growth in global markets for farm and construction equipment.
Moreover, Deere provided a bearish outlook for fiscal 2016. It expects equipment sales to drop around 8% year over year in the second quarter of fiscal 2016 and 10% in the full fiscal year.
The company foresees global sales for Construction & Forestry equipment to tank about 11% in fiscal 2016. The decline reflects the impact of soft conditions in the North American energy sector, as well as lower sales outside the U.S. and Canada. It also expects Agriculture and Turf equipment sales to slump 10% for the full year.
However, Deere expects to record solid profitability over the long term on the back of increased global demand for food, shelter and infrastructure. On the flip side, weak conditions in the energy and agricultural sectors, and sluggish economic growth outside the U.S. remain headwinds for the company.
Deere currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in this sector are Astec Industries, Inc. ASTE , AptarGroup, Inc. ATR and Caterpillar Inc. CAT . All of these stocks have a Zacks Rank #2 (Buy).
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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
APTARGROUP INC (ATR): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
ASTEC INDS INC (ASTE): Free Stock Analysis Report
DEERE & CO (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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In order to remain competitive, Deere continuously strives to align the size of its manufacturing workforce with the market demand for its products. The company reported a decline in both its top and bottom lines for the first quarter of fiscal 2016 (ended Jan 31, 2016) owing to sluggish growth in global markets for farm and construction equipment. However, Deere expects to record solid profitability over the long term on the back of increased global demand for food, shelter and infrastructure.
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Click to get this free report APTARGROUP INC (ATR): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. In the wake of weak market demand and to minimize the gap between production and demand, agricultural equipment maker, Deere & CompanyDE has announced an indefinite layoff of roughly 125 employees at two of its factories in Iowa. The layoff at the Ankeny plant, which is part of Deere's agriculture and turf division, will become effective Apr 15.
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In the wake of weak market demand and to minimize the gap between production and demand, agricultural equipment maker, Deere & CompanyDE has announced an indefinite layoff of roughly 125 employees at two of its factories in Iowa. Click to get this free report APTARGROUP INC (ATR): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The layoff at the Ankeny plant, which is part of Deere's agriculture and turf division, will become effective Apr 15.
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Click to get this free report APTARGROUP INC (ATR): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. In the wake of weak market demand and to minimize the gap between production and demand, agricultural equipment maker, Deere & CompanyDE has announced an indefinite layoff of roughly 125 employees at two of its factories in Iowa. The layoff at the Ankeny plant, which is part of Deere's agriculture and turf division, will become effective Apr 15.
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df24ac72-9bb5-4fc0-8bb8-451a77f55490
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722671.0
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2016-03-09 00:00:00 UTC
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Deere & Company Still Isn't Attractive
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DE
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https://www.nasdaq.com/articles/deere-company-still-isnt-attractive-2016-03-09
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nan
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nan
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's second-quarter earnings were a mixed bag. The company is executing well, but difficult end markets led to a full-year guidance reduction. Let's review the pressures building up on Deere and what management said on theearnings callto help alleviate investors' fears about 2016.
The bear case for Deere
Investor concerns include:
A deteriorating end-market environment, with farmers' income continuing to decline because of low crop prices.
Pricing that could come under pressure because of inventory build.
A buildup of equipment on operating leases that could lead to a glut of used equipment in the future and is also supporting unsustainable near-term demand.
An increasing reliance on its finance arm for profits and a deterioration of its credit quality, while farmers are under financial pressure.
I will deal with these points in turn.
End markets
There is little management can do about weak end markets, and a further deterioration in conditions caused a lowering of full-year net sales growth estimates to negative 10%, compared with a previous estimate of negative 8%. Similarly, guidance for full-year net income was taken down to $1.3 billion from $1.4 billion previously.
On a brighter note, Josh Jepsen, manager of investor communications, reminded investors that grain stocks-to-use levels were still sensitive and that "unfavorable growing conditions in any key region of the world, as well as unknown impacts from any geopolitical tensions, could result in prices quickly moving higher." A lower stocks-to-use ratio is generally more bullish for prices.
IMAGE SOURCE: DEERE & COMPANY PRESENTATIONS.
Inventory build
Based on looking at inventory over next quarter's sales, Deere's inventory position is building up. It's something you might expect in a deteriorating sales environment. Is it a sign of pricing pressure to come?
It's a particular concern, because Caterpillar 's VP of finance services, Michael DeWalt, talked of pricing pressures caused by the stronger U.S. dollar, while CEO Doug Oberhelman referred to "excess capacity with competitors" in its construction- and energy-heavy markets.
However, Deere maintained its forecast for 2% price realization in 2016, and Director of Investor Relations Tony Huegel argued that "with our current forecast, we would finish both inventory and within our factories as well as dealer inventories at or below, as a percent of sales, where we were at the end of 2015."
That said, Huegel defined the price environment as "very challenging" and referred to a large competitor in construction -- possibly Caterpillar -- that had talked of "negative pricing" for its business.
Leased equipment and used machinery prices
As equipment sales have declined, Deere has dramatically increased the amount of equipment it leases:
Huegel answered a related question by pointing out that only 5% of the ag lease portfolio was on "12 months or less, where you've got 22% of production-class equipment leases." Moreover, Huegel said, 42% of the ag portfolio is used equipment, compared with just 3% in construction.
Huegel concluded that there was "still a risk that we can maintain those used equipment prices, but at this point that is holding up well."
Reliance on finance arm
Deere lowered full-year guidance for net income from its finance arm to $525 million from $550 million previously, having reported a decline in the first quarter of $28 million to $129 million. Management blamed a combination of currency effects, less favorable financing spreads, higher provision for credit losses, and "higher losses on residual values primarily for construction equipment operating leases," as Jepsen said. In other words, all the things that investors have cause to be concerned about with Deere's finance operations.
If there is a positive, it's that the company's core ag operations haven't been hit with significant losses on residual values, yet.
Huegel argued that Deere's forecast for full-year provision for credit losses/average owned portfolio of 0.19 is still a "very attractive level," and it's a lot lower than in previous years. However, given that guidance is for financial services to contribute 40% of net income this year, any significant overshoot in credit loss provisions will have an effect.
The takeaway
The color on the amount of used equipment in ag leasing operations is useful, and Deere's ability, thus far, to keep increasing prices is very impressive. There's little doubt that it's a well-run company, but the concerns over its reliance on its finance arm and the inventory buildup remain. Moreover, given that the company reduced its macroeconomic outlook, it's hard to see these results as a net positive.
All told, it's hard to see conditions improving unless crop prices do, but until then the downward pressure on earnings will remain. All told, I think the stock contains enough specific risk to make it worth avoiding in favor of simply buying a corn or wheat ETF as a way to play higher crop prices.
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The article Deere & Company Still Isn't Attractive originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The bear case for Deere Investor concerns include: A deteriorating end-market environment, with farmers' income continuing to decline because of low crop prices. It's a particular concern, because Caterpillar 's VP of finance services, Michael DeWalt, talked of pricing pressures caused by the stronger U.S. dollar, while CEO Doug Oberhelman referred to "excess capacity with competitors" in its construction- and energy-heavy markets. Let's review the pressures building up on Deere and what management said on theearnings callto help alleviate investors' fears about 2016.
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End markets There is little management can do about weak end markets, and a further deterioration in conditions caused a lowering of full-year net sales growth estimates to negative 10%, compared with a previous estimate of negative 8%. Reliance on finance arm Deere lowered full-year guidance for net income from its finance arm to $525 million from $550 million previously, having reported a decline in the first quarter of $28 million to $129 million. Let's review the pressures building up on Deere and what management said on theearnings callto help alleviate investors' fears about 2016.
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However, Deere maintained its forecast for 2% price realization in 2016, and Director of Investor Relations Tony Huegel argued that "with our current forecast, we would finish both inventory and within our factories as well as dealer inventories at or below, as a percent of sales, where we were at the end of 2015." Leased equipment and used machinery prices As equipment sales have declined, Deere has dramatically increased the amount of equipment it leases: Huegel answered a related question by pointing out that only 5% of the ag lease portfolio was on "12 months or less, where you've got 22% of production-class equipment leases." Reliance on finance arm Deere lowered full-year guidance for net income from its finance arm to $525 million from $550 million previously, having reported a decline in the first quarter of $28 million to $129 million.
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Huegel concluded that there was "still a risk that we can maintain those used equipment prices, but at this point that is holding up well." Let's review the pressures building up on Deere and what management said on theearnings callto help alleviate investors' fears about 2016. The bear case for Deere Investor concerns include: A deteriorating end-market environment, with farmers' income continuing to decline because of low crop prices.
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72798b5f-1e9e-4cac-9586-453e54427ca1
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722672.0
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2016-03-09 00:00:00 UTC
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5 Smart Ways to Profit From a Stock Market Correction
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DE
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https://www.nasdaq.com/articles/5-smart-ways-profit-stock-market-correction-2016-03-09
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nan
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nan
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The stock market has rebounded lately, but it's still a long way off from its 2015 highs. And just in case this rally runs out of gas, it's smart to be prepared for another market drop. With that in mind, here are five suggestions from our contributors that can not only help you survive a stock market correction, but also set yourself up to come out of it even better off than you went in.
Selena Maranjian : A great way to improve your ability to profit from inevitable occasional stock market corrections is to be ready for them -- with a list of stocks you'd love to own.
You can do that by maintaining a watch list. Here's how it might work: Every time you run across or think of a company that impresses you and that you'd like to own, jot it down. You might keep your list in a notebook, but it's far easier to do so online -- ideally via an online portfolio that you can set up at a number of major financial websites. (It would not be your actual portfolio of stocks you own, but a separate one.)
Once the companies are in an online portfolio, you can click on it at any time and see how it's doing. You will likely also be able to easily check up on news relating the companies. There are several ways to set up the portfolio. You might pretend that you bought one share of each company of interest, at its price on the day it was added to the portfolio. Thereafter, whenever you look at the portfolio, you'll see how much it has risen or fallen. When the market drops, you'll easily be reminded of stocks of interest and will see how far they've fallen.
If you're willing to do more work, you can make this system serve you better by entering stocks of interest not at their going price, but at your estimate of their intrinsic value. So if Scruffy's Chicken Shack (ticker: BUKBUK) seems worth $25 per share, you add a share of it at that price. Thereafter, whenever you look at the portfolio, you'll see at a glance how over- or undervalued it is. You'll need to revisit and perhaps revise your estimates regularly, of course.
Matt Frankel: One of the best things you can do in a stock market correction is to pick out the best-in-breed stocks that are trading at a discount. This is especially true if the correction was caused by or dragged down a particular sector. Obviously, the energy sector has been beaten down thanks to low oil prices , but we all knew that already.
However, the banking sector has performed terribly in 2016. Even after the recent rebound, many banks are trading for valuation multiples not seen in several years. Just to name a couple of my favorites, now is a great time to take a look at rock-solid banks such as Wells Fargo and U.S. Bancorp . Both of these banks have excellent asset quality, efficient operations, and superior profitability. Plus, they're trading for price-to-tangible book multiples last seen in 2012 (USB) and 2013 (WFC).
Or if you have a little more risk tolerance, take a look at Goldman Sachs , which is trading for less than the value of its tangible assets. Often regarded as the top U.S. investment bank, Goldman once had Warren Buffett calling his investment in the company a "bet on brains," because of Goldman's reputation for attracting and hiring the best minds on Wall Street.
Brian Feroldi: Speaking of Buffett, one smart and easy way to profit whenever the stock market takes a tumble is to mimic the actions of the greatest investor of our time. It's easy to do so. Since the SEC requires the disclosure of all financial moves every quarter, investors can review his recent transactions and add a few shares to their own portfolio.
One stock Buffett has been purchasing recently is Deere & Company , the giant agricultural equipment maker. Buffett recently purchased 5.8 million shares of the company's stock, which brings his total ownership up to 22.9 million shares.
Deere & Co. looks like a classic Buffett investment, The company boasts an iconic brand name that its customers appreciate and are willing to pay a premium for. That brand gives the company a durable competitive advantage and a leg up over its competitors.
Buffett obviously sees a lot of value in the company's stock, which is down more than 16% from its 52-week high. That's likely owed to both the general market sell-off and the huge decline in commodity prices, which has decreased the demand for the company's agricultural products. Sales dropped 13% last quarter, and its management team is forecasting an additional 10% drop in 2016, but that situation is likely to correct itself over the longer term, since the world's population is growing and farmers around the world depend on Deere & Co.'s equipment to help them increase production. While investors wait for the turn to happen, they can enjoy the company's 3% dividend yield and take comfort in knowing the company has a history of plowing billions into its share-repurchase program.
The Oracle of Omaha clearly sees value in the company's shares, so copying him by adding a few shares to your own portfolio might prove to be a smart move.
Jason Hall : One of the best ways to take advantage of a market correction is also one of the simplest, easiest ways to invest: dollar cost averaging. That may sound complex or technical, but it's just fancy talk for regularly investing new money into the same thing on a regular basis. Not only is this a simple way to invest for the long term, but it also takes advantage of every market correction, since you'll continue investing right through the bottom.
Here's an example, using Vanguard Growth ETF . Let's say you started investing $200 per month into this ETF on the first trading day of the month in January 2006, and use the Great Recession to demonstrate how you can benefit from this strategy.
For the first two years, 2006 and 2007, you would have Invested $7,200 and bought around 140 shares, based on the closing price on the first trading day of the month, and reinvesting dividends. In 2008 and 2009, you would have invested the same $7,200, but you would have bought 171 shares, or about 22% more shares.
I know, you could argue that this also means you're buying at the market peak, and that's true. But here's the hard, cold reality of investing: Even the most successful investors struggle with market timing. Instead of falling into the trap of thinking you can do any better, dollar-cost averaging is a great way to get out of your own way, and make sure you profit from the corrections, even if you do buy at the top, too.
Dan Caplinger : A lot of investors find it difficult to do in-depth analysis on individual stocks during a market correction. Even if you feel strongly that declines for a particular sector might be overblown, figuring out exactly which stock is most likely to benefit can be challenging. If you therefore don't take any action, you can miss out on a promising opportunity.
Fortunately, there's an alternative. By using exchange-traded funds that focus on particular sectors of the market, you can make an investment decision based on your beliefs about a selected industry without having to drill down all the way to the individual-company level. Sure, you won't always get the highest possible return by doing so, as you'll end up with exposure to several companies within the same sector. However, if your investment thesis is correct and the entire industry bounces back, a sector ETF will generally reflect those gains. Moreover, you'll often do better than you would have if you'd picked an individual stock that turned out not to move as favorably as you had expected.
Finally, you can always use sector ETFs in conjunction with individual stocks. For instance, if you know energy is ready to rise but don't know which energy stock will be best, buying an energy ETF while you do further analysis ensures that you won't miss out on a general upward move for the sector as a whole. Once you have time to look further, you can sell the ETF and buy your chosen individual stock. That can give you the best of both worlds in a market correction.
The $15,978 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. For example: one easy, 17-minute trick could pay you as much as $15,978 more... each year! Once you learn how to take advantage of all these loopholes, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how you can take advantage of these strategies.
The article 5 Smart Ways to Profit From a Stock Market Correction originally appeared on Fool.com.
Brian Feroldi has no position in any stocks mentioned. Dan Caplinger has no position in any stocks mentioned. Jason Hall owns shares of Wells Fargo. Matthew Frankel owns shares of Goldman Sachs. Selena Maranjian has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Wells Fargo. The Motley Fool is short Deere & Company and has the following options: short March 2016 $52 puts on Wells Fargo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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By using exchange-traded funds that focus on particular sectors of the market, you can make an investment decision based on your beliefs about a selected industry without having to drill down all the way to the individual-company level. The stock market has rebounded lately, but it's still a long way off from its 2015 highs. You might keep your list in a notebook, but it's far easier to do so online -- ideally via an online portfolio that you can set up at a number of major financial websites.
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The stock market has rebounded lately, but it's still a long way off from its 2015 highs. You might keep your list in a notebook, but it's far easier to do so online -- ideally via an online portfolio that you can set up at a number of major financial websites. You might pretend that you bought one share of each company of interest, at its price on the day it was added to the portfolio.
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The stock market has rebounded lately, but it's still a long way off from its 2015 highs. You might keep your list in a notebook, but it's far easier to do so online -- ideally via an online portfolio that you can set up at a number of major financial websites. You might pretend that you bought one share of each company of interest, at its price on the day it was added to the portfolio.
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You might pretend that you bought one share of each company of interest, at its price on the day it was added to the portfolio. The stock market has rebounded lately, but it's still a long way off from its 2015 highs. You might keep your list in a notebook, but it's far easier to do so online -- ideally via an online portfolio that you can set up at a number of major financial websites.
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6b035ba3-7933-451f-bc7e-55a25941fb05
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722673.0
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2016-03-07 00:00:00 UTC
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Now may be a good time to follow Buffett into Deere & Co.
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DE
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https://www.nasdaq.com/articles/now-may-be-good-time-follow-buffett-deere-co-2016-03-07
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nan
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nan
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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.
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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.
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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.
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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.
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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.
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59e98870-c9cb-402f-9784-a78a6f1b7f82
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722674.0
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2016-03-06 00:00:00 UTC
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3 Reasons Monsanto Stock Could Rise
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DE
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https://www.nasdaq.com/articles/3-reasons-monsanto-stock-could-rise-2016-03-06
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nan
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nan
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Image: Monsanto.
The past year has been a tough one for the agricultural industry, and Monsanto has seen its stock lose almost a quarter of its value since early 2015. Poor prices for commodity crops have taken their toll on demand from farmers, but Monsanto hasn't let tough times temper its long-term enthusiasm about the industry. Let's take a look at three reasons why Monsanto stock could reverse its recent losses and climb from here.
Growth initiatives are aimed at the entire world
Monsanto's most important competitive advantage is its innovative spirit. Even when the company goes through ordinary cyclical downturns, it's important for investors not to forget Monsanto's ability to find new ways to grow. The company's product pipeline is impressive, and success stories show the potential for Monsanto to reap long-term rewards from its efforts on the research and development front.
For instance, Monsanto has seen success with a new type of soybean that is specifically designed for the climate conditions prevailing in key markets in the Southern Hemisphere, including Brazil and Argentina. Other products in Monsanto's pipeline include insecticides and disease control, which the company hasn't tapped to nearly the extent of some of its rivals. Even though corn, soybeans, and cotton represent key staple markets that Monsanto will continue to focus on, it is also looking at ancillary agricultural markets such as tomatoes and cucumbers to extend its reach. By taking advantage of its already impressive size and scope, Monsanto shares could benefit from its growth efforts.
Consolidation in the agricultural productivity industry
For a while now, Monsanto has made multiple attempts to try to combine with peers in its industry. In the end, though, it has been its rivals that have made combinations. In particular, Dow Chemical and DuPont are looking to join forces in a deal that will eventually lead to the separation of their combined agricultural productivity businesses. More recently, the offer that Syngenta received from China-based ChemChina put an end to Monsanto's long pursuit of the Swiss company.
But even though Monsanto won't see a Syngenta merger, many believe that its plans for future acquisitions are far from dead. CEO Hugh Grant has said that he's fine with Monsanto remaining an independent player in the industry, but he also sees it as a choice prospect for candidates looking for a merger. Candidates such as BASF , Bayer , or FMC could help Monsanto realize its hopes for building up its crop-protection product line. If any of those combinations happen, the growth that Monsanto could see would likely raise earnings and put the company in an even better position to benefit when the agricultural cycle turns upward.
The rise of agricultural data collection and analysis
The Big Data movement has grabbed hold in the technology industry, but many people don't realize the vital role it could play in agriculture. By using the Internet of Things to collect data, agricultural companies could keep a tighter rein on the progress of their crops during the growing season and be smarter about how they respond to changing conditions.
That's the thesis behind Monsanto's Climate Corp. subsidiary, which takes weather information and uses data analytics to provide useful tips that its clients can use to enhance their seasonal crop yields. Monsanto has worked hard at trying to build up the business, working with farm equipment specialist Deere to incorporate Monsanto's FieldView platform into Deere's products. By giving farmers the ability to get useful data regarding their crops, Monsanto hopes that it will be able to work more closely with customers to deliver tailored solutions to their immediate problems. If successful, that can only help boost earnings and give shareholders greater long-term returns.
Monsanto stock has struggled through agriculture's recent slump. But the company still has its strategic focus, and over time, Monsanto could see its stock bounce back substantially once conditions in the industry improve.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article 3 Reasons Monsanto Stock Could Rise originally appeared on Fool.com.
Dan Caplinger has no position in any stocks mentioned. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's product pipeline is impressive, and success stories show the potential for Monsanto to reap long-term rewards from its efforts on the research and development front. For instance, Monsanto has seen success with a new type of soybean that is specifically designed for the climate conditions prevailing in key markets in the Southern Hemisphere, including Brazil and Argentina. That's the thesis behind Monsanto's Climate Corp. subsidiary, which takes weather information and uses data analytics to provide useful tips that its clients can use to enhance their seasonal crop yields.
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The company's product pipeline is impressive, and success stories show the potential for Monsanto to reap long-term rewards from its efforts on the research and development front. In particular, Dow Chemical and DuPont are looking to join forces in a deal that will eventually lead to the separation of their combined agricultural productivity businesses. Poor prices for commodity crops have taken their toll on demand from farmers, but Monsanto hasn't let tough times temper its long-term enthusiasm about the industry.
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Consolidation in the agricultural productivity industry For a while now, Monsanto has made multiple attempts to try to combine with peers in its industry. Monsanto has worked hard at trying to build up the business, working with farm equipment specialist Deere to incorporate Monsanto's FieldView platform into Deere's products. Poor prices for commodity crops have taken their toll on demand from farmers, but Monsanto hasn't let tough times temper its long-term enthusiasm about the industry.
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Consolidation in the agricultural productivity industry For a while now, Monsanto has made multiple attempts to try to combine with peers in its industry. The Motley Fool is short Deere & Company. Poor prices for commodity crops have taken their toll on demand from farmers, but Monsanto hasn't let tough times temper its long-term enthusiasm about the industry.
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26770786-5799-4fc7-9cc4-54eb7068e594
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722675.0
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2016-03-03 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - DE
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DE
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-de-2016-03-03
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nan
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nan
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $83.06, changing hands as high as $83.57 per share. Deere & Co. shares are currently trading up about 2.1% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $83.67.
According to the ETF Finder at ETF Channel, DE makes up 8.22% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading higher by about 1.3% on the day Thursday.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $83.06, changing hands as high as $83.57 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $83.67. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $83.06, changing hands as high as $83.57 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $83.67. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $83.06, changing hands as high as $83.57 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $70.16 per share, with $98.23 as the 52 week high point - that compares with a last trade of $83.67. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $83.06, changing hands as high as $83.57 per share. According to the ETF Finder at ETF Channel, DE makes up 8.22% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading higher by about 1.3% on the day Thursday. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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801dae31-587d-446d-9a56-ed306e5f3c6b
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722676.0
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2016-03-01 00:00:00 UTC
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The 3 Best Dividend Stocks for Beginning Investors
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DE
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https://www.nasdaq.com/articles/3-best-dividend-stocks-beginning-investors-2016-03-01
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nan
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nan
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One of the most intimidating tasks for beginning investors is that of narrowing down the thousands of potential business in which the stock market allows you to put your money to work. A great place to start is by purchasing solid stocks that pay healthy dividends, which -- combined with the power of compounding returns -- serve as a valuable tool to create wealth over the long term.
We asked three Motley Fool contributors to choose their best dividend stocks for beginning investors. Read on to see which companies they picked and why.
Selena Maranjian:VF Corp is a terrific dividend stock for beginning investors. For starters, being in the apparel, footwear, and accessory business, it's relatively easy to understand -- at least more so than many semiconductor or biotechnology companies. It's been very good to investors, too, averaging annual gains of about 19% over the past decade, and 15% over the past 25 years.
VF Corp's offerings are easy to find in stores across America. Its brands include The North Face, Vans, Timberland, Wrangler, Lee, and Nautica, among others. Apparel isn't a no-brainer industry to invest in, as fashions change over time, with various retailers' offerings going in and out of style. Still, VF Corp's diversified range of brands gives it some stability.
The stock is down close to 20% over the past year, with management citing "a softer consumer environment, record warm weather and a strengthening U.S. dollar" in the last quarterly report. Still, the company notched a 1% revenue gain in 2015 over 2014 (6%, excluding currency effects) and with net profit margins topping 8%, it has been cranking out hundreds of millions of dollars in annual free cash flow for many years. Its international operations generate a little more than a third of revenue at this point, but that leaves a lot of room for growth -- especially when the dollar is weak. Management projections for 2016 call for single-digit growth in most divisions, with double-digit growth for its direct-to-consumer sales via stores and e-commerce. It plans to add about 80 stores in 2016.
VF Corp's stock recently yielded 2.5%, and its payout has more than doubled over the past year. With its payout ratio not far from 50%, it has plenty of room for further dividend growth. It's not afraid of hefty increases, either, having upped its dividend by 15.6% in 2015 and 21.6% in 2014.
DE Dividend data by YCharts .
Deere has increased its dividend consistently and substantially over the past five years especially, and at a yield of more than 3%, the company offers a solid dividend play and plenty of upside for the long term.
Steve Symington: I like Selena's pick of VF Corp. for the fact that its diversified brands offer stability in changing apparel markets. But I also think beginning investors could do well buying shares of a more focused business in the space like Nike , a juggernaut in the athletic apparel and footwear industry with an enormous $110 billion market capitalization.
Still, while its size and global presence offer relative stability for new investors, that doesn't mean Nike can't continue growing both its share price and capital returns efforts at a healthy clip. With each passing quarter, CEO Mark Parker continues to remind investors "Nike is a growth company." And in fact, in October 2015, Nike announced a new revenue target of $50 billion by the end of its fiscal year 2020, representing more than 60% growth from analysts' expectations for fiscal 2016 revenue of $30.6 billion. Nike's business is also easy to understand; nearly 60% of Nike's total $7.69 billion in revenue last quarter came from footwear ($4.6 billion), a little over 30% came from athletic apparel ($2.36 billion), and just under 5% came from athletic equipment and licensing ($362 million combined). The remaining roughly 5% (or $398 million) came from Converse, representing a growing business that Nike astutely acquired for a total of just $305 million in 2003.
What's more, just prior to its most recent solid quarterly results in December, Nike not only increased its quarterly dividend by 14.3% to $0.16 per share -- marking its 14th consecutive year of increasing its dividend, by the way -- it also approved a massive $12 billion share repurchase program with which it can reduce the number of shares outstanding, which in turn increases the value of investors' remaining shares.
In the end, both beginning and expert investors alike can appreciate Nike's global leadership and well-known brand, ambitious long-term growth plans, and compelling capital returns.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
The article The 3 Best Dividend Stocks for Beginning Investors originally appeared on Fool.com.
Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Nike. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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A great place to start is by purchasing solid stocks that pay healthy dividends, which -- combined with the power of compounding returns -- serve as a valuable tool to create wealth over the long term. We asked three Motley Fool contributors to choose their best dividend stocks for beginning investors. Selena Maranjian:VF Corp is a terrific dividend stock for beginning investors.
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Nike's business is also easy to understand; nearly 60% of Nike's total $7.69 billion in revenue last quarter came from footwear ($4.6 billion), a little over 30% came from athletic apparel ($2.36 billion), and just under 5% came from athletic equipment and licensing ($362 million combined). A great place to start is by purchasing solid stocks that pay healthy dividends, which -- combined with the power of compounding returns -- serve as a valuable tool to create wealth over the long term. We asked three Motley Fool contributors to choose their best dividend stocks for beginning investors.
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We asked three Motley Fool contributors to choose their best dividend stocks for beginning investors. Nike's business is also easy to understand; nearly 60% of Nike's total $7.69 billion in revenue last quarter came from footwear ($4.6 billion), a little over 30% came from athletic apparel ($2.36 billion), and just under 5% came from athletic equipment and licensing ($362 million combined). What's more, just prior to its most recent solid quarterly results in December, Nike not only increased its quarterly dividend by 14.3% to $0.16 per share -- marking its 14th consecutive year of increasing its dividend, by the way -- it also approved a massive $12 billion share repurchase program with which it can reduce the number of shares outstanding, which in turn increases the value of investors' remaining shares.
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The Motley Fool is short Deere & Company. A great place to start is by purchasing solid stocks that pay healthy dividends, which -- combined with the power of compounding returns -- serve as a valuable tool to create wealth over the long term. We asked three Motley Fool contributors to choose their best dividend stocks for beginning investors.
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53058e0c-e135-4fc9-9863-64dd3b4c8a5b
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722677.0
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2016-02-29 00:00:00 UTC
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Better Buy: Caterpillar Inc. vs. Deere
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DE
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https://www.nasdaq.com/articles/better-buy-caterpillar-inc-vs-deere-2016-02-29
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nan
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nan
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Image: Caterpillar.
Heavy-machinery makers Caterpillar and Deere have both faced large struggles in recent years, as the construction, mining, energy, and agricultural industries have all suffered downswings in their cyclical performance. Yet in the past month, both Deere and Caterpillar have made minor rebounds because of a bounce in key commodity markets. If the industry is poised for a fresh upward move, which of these two stocks is a better buy right now? Let's take another look at how Caterpillar and Deere compare on some key metrics to see which deserves your attention.
Valuation
Both Caterpillar and Deere have bounced back from their lows recently. In the past month, Caterpillar is up 15%, and Deere has picked up 8%.
The combination of falling earnings and rising prices has made earnings multiples rise recently. Caterpillar now trades at 19 times trailing earnings, while Deere trades at a cheaper earnings multiple of 14. However, investors still expect earnings for both companies to remain under pressure in the future, and Deere actually has a higher forward earnings multiple of around 19, compared to Caterpillar's 18. Those numbers are close enough to make it a dead-heat between Deere and Caterpillar on the valuation front.
Dividends
For dividend investors, the share-price increase has lowered both companies' yields, but the advantage still goes to Caterpillar. Deere pays a dividend yield of about 3% right now. Caterpillar has a much higher yield that's approaching 4.6%.
However, the difference in the two companies' payout ratios suggests that the earnings strength that powers their dividends might not fit with their yields. Caterpillar has paid more than 80% of its trailing earnings in the form of dividends, compared to just 40% for Deere. That means Deere could choose to have a higher yield if it returned more capital to shareholders, but it chooses instead to use its earnings for other purposes.
Still, Caterpillar has been better about raising its dividends recently. Despite its earnings woes, Caterpillar boosted its dividend by 10% in 2015, prolonging a streak of annual increases that has extended for more than a decade. Deere, by contrast, didn't raise its quarterly dividend last year, instead keeping it flat as it did during a similar downturn in 2009. For those who rely on dividends, Caterpillar offers an edge.
Growth
Fundamentally, both Caterpillar and Deere have seen their businesses struggle lately. In its most recent quarter, Caterpillar posted an overall drop in revenue of 23%. Energy and transportation saw the biggest declines among Caterpillar's segments, with sales falling 29% due to crude oil's plunge and other energy-related challenges. Resource Industries revenue fell 23%, and the Construction Industries segment suffered an 18% decline. The company expects 2016 to be tough as well, with a roughly 10% overall hit to sales coming.
Deere's results were also fairly grim. Overall revenue dropped 13%, with the key equipment sector falling 15%. For the full 2016 fiscal year, equipment sales will likely fall another 10%, with particular weakness in the Construction and Forestry segment holding back the company's rebound. The company's financial services division has helped bolster Deere's overall results, but in general, the weakness in agriculture for Deere is mirroring what Caterpillar is seeing in most of its businesses.
If the market for heavy equipment starts to perk back up, Caterpillar has a slightly better prospect to gain from an upswing. However, Deere could be a winner if any commodity gains are limited to the agricultural market. Overall, that seems unlikely, and so Caterpillar makes a slightly better bet right now.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article Better Buy: Caterpillar Inc. vs. Deere originally appeared on Fool.com.
Dan Caplinger has no position in any stocks mentioned. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Heavy-machinery makers Caterpillar and Deere have both faced large struggles in recent years, as the construction, mining, energy, and agricultural industries have all suffered downswings in their cyclical performance. Energy and transportation saw the biggest declines among Caterpillar's segments, with sales falling 29% due to crude oil's plunge and other energy-related challenges. Yet in the past month, both Deere and Caterpillar have made minor rebounds because of a bounce in key commodity markets.
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Yet in the past month, both Deere and Caterpillar have made minor rebounds because of a bounce in key commodity markets. The combination of falling earnings and rising prices has made earnings multiples rise recently. Heavy-machinery makers Caterpillar and Deere have both faced large struggles in recent years, as the construction, mining, energy, and agricultural industries have all suffered downswings in their cyclical performance.
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However, investors still expect earnings for both companies to remain under pressure in the future, and Deere actually has a higher forward earnings multiple of around 19, compared to Caterpillar's 18. Caterpillar has paid more than 80% of its trailing earnings in the form of dividends, compared to just 40% for Deere. The company's financial services division has helped bolster Deere's overall results, but in general, the weakness in agriculture for Deere is mirroring what Caterpillar is seeing in most of its businesses.
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However, investors still expect earnings for both companies to remain under pressure in the future, and Deere actually has a higher forward earnings multiple of around 19, compared to Caterpillar's 18. The company's financial services division has helped bolster Deere's overall results, but in general, the weakness in agriculture for Deere is mirroring what Caterpillar is seeing in most of its businesses. Heavy-machinery makers Caterpillar and Deere have both faced large struggles in recent years, as the construction, mining, energy, and agricultural industries have all suffered downswings in their cyclical performance.
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10744546-281f-4f32-ab08-526c99f56494
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722678.0
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2016-02-27 00:00:00 UTC
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Stocks Warren Buffett Is Buying (or Should Be)
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DE
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https://www.nasdaq.com/articles/stocks-warren-buffett-buying-or-should-be-2016-02-27
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nan
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nan
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Following billionaire investor Warren Buffett into stocks he owns has often been a profitable strategy over the past few decades. But reversing the order--buying a stock before Buffett buys it--can be even more fun and, potentially, more rewarding.
With that in mind--and with Buffett slated to release his annual letter to shareholders on Saturday, February 27--we went prospecting in two groups of companies: stocks that Berkshire Hathaway (symbol BRK.B , $132.31), Buffett's holding company, has been buying recently, and shares that Buffett doesn't hold but we think he might buy. We looked for the things he looks for: companies that are leaders in their industries, that have a strong commitment to sharing profit with investors, and whose stocks sell for relatively low prices compared with earnings and underlying asset value.
A few caveats: First, Buffett's stock-picking abilities are legendary, but even the Oracle of Omaha has had some clunkers . Second, many of Berkshire's stock picks are now made by Buffett's two investing deputies, Todd Combs and Ted Weschler, not Buffett himself. And third, anyone guessing which stocks might be attractive to Berkshire is doing just that -- guessing. Buffett hasn't sought our advice, and we're not waiting for the phone to ring.
Here's a look at four stocks that Berkshire has purchased recently, and four that we humbly suggest the master should consider.
Share price: $47.75
52-week low/high: $44.50 - $58.77
Market capitalization: $243.2 billion
Price-earnings ratio: 11
Dividend yield: 3.1%
Ownership status: Berkshire already owns it
If there's one stock that epitomizes Buffett's devotion to companies he likes, it's probably Wells Fargo ( WFC ). The banking titan has been a Buffett holding since 1989 and now is Berkshire Hathaway's second-biggest stock bet, with 479 million shares worth $23 billion. After the stock slumped with the rest of the market late last summer, Berkshire once again stepped up to buy more, adding 9.4 million shares in the fourth quarter of 2015.
But bank stocks are off to a rough start in 2016. Wells slumped to $44.50 in early February, down 24% from its 52-week high and at a two-year low. Investors have had plenty of legitimate reasons to sell, including the weak global economy, rising energy-loan defaults as crude oil prices have crashed, and new calls to break up the megabanks -- a view even espoused by Neel Kashkari, the new president of the Minneapolis Federal Reserve Bank. But Wall Street's biggest concern may be that the Fed will stop raising short-term interest rates if the U.S. economy slows further. Higher rates were expected to boost profits at Wells and other banks in 2016 because rates on loans typically rise faster than the rates banks pay depositors. As it is, Wells's earnings growth is expected to be meager this year. Analysts on average estimate earnings of $4.27 per share, up just 3% from 2015.
SEE ALSO: Stocks Paying Dividends for 100 Years or More
Still, none of that is likely to change Buffett's long-term view of Wells, which he considers one of the world's best-managed big banks. When he says his favorite holding period for an investment is "forever," he's almost certainly thinking about Wells. Investors who want to tag along at this point get a stock selling for a modest 11 times estimated 2016 earnings (compared with 16 for Standard & Poor's 500-stock index) and delivering a 3.1% dividend yield (compared with 2.3% for the S&P).
Share price: $78.76
52-week low/high: $69.79 - $94.12
Market capitalization: $41.5 billion
Price-earnings ratio: 12
Dividend yield: 2.8%
Ownership status: Berkshire already owns it
At a time when many investors worldwide are focused on whether crude oil prices are finally bottoming, Buffett's hefty purchases of Phillips 66 ( PSX ) shares recently were bound to grab headlines. Berkshire has reported buying 14 million shares of the oil refiner since January 1, adding to the huge stake it took last year. Berkshire now controls 14.3% of Phillips, worth $6.1 billion. But investors trying to read a message about oil's next move in Buffett's latest Phillips purchases should recall what he said last year about his initial stake. He told CNBC in September that "we're not buying it as a refiner and we're certainly not buying it as an integrated oil company. We're buying it because we like the company and we like the management very much." That's classic Buffett: buying a business for the brains behind the physical assets.
What Phillips investors get, though, is in fact a major oil refiner, operating 14 refining facilities. "But it's a company that is more than just a 'downstream' refiner," says David Kass, a finance professor at the University of Maryland-College Park who tracks Buffett and is a Berkshire shareholder.
Phillips sees its future in its other businesses, which include natural gas purification, gas pipelines, and production of olefins, the building blocks of many plastics and fibers. While many energy firms fell deep into the red in 2015, Phillips earned $7.67 per share on revenue of $101 billion. In 2016, however, analysts on average expect profit to fall to $6.56 per share because lower prices for refined gasoline have caught up with the cheap prices Phillips pays for crude. At the stock's current price, investors who want to join Buffett in Phillips would pay about the same price Berkshire has paid this year and would get a 2.8% dividend yield. If you think Buffett probably knows some good things about Phillips that you don't, this looks like a fairly low-risk way of hitching a ride with him.
Share price: $79.60
52-week low/high: $70.16 - $98.23
Market capitalization: $$25.2 billion
Price-earnings ratio: 20
Dividend yield: 3.0%
Ownership status: Berkshire already owns it
Berkshire Hathaway was a big buyer of farm machinery leader Deere ( DE ) in the fourth quarter of 2015, adding 5.8 million shares to a stake Buffett Co. have had since at least 2014. Berkshire now holds 22.9 million shares, or 7.2% of the company. But if Buffett liked the stock last quarter, he should have loved it by mid January, when the price hit a 3 1/2-year low of $70.16.
The shares have tumbled 19% from their 52-week high as Deere's outlook has worsened. Crop prices have continued to fall with the global plunge in commodity prices. As farmers earn less from important crops such as corn and wheat, their income dives -- and with it, their ability to buy new tractors, harvesters and other equipment. Deere reported earnings of 80 cents per share for the quarter that ended January 31, a drop of 28% from the same period a year earlier. Sales slid 13%, to $5.5 billion. Worse, the company projected a 10% decline in sales for its full fiscal year, which ends next October, a grimmer forecast than Wall Street had expected. Even so, Deere still thinks it can earn about $4 per share in the fiscal year. That may be key to keeping Buffett aboard for an eventual rebound. Helped by cost cutting, Deere's results are "much better than we have experienced in previous downturns," CEO Samuel Allen told investors in the report on November-January results.
SEE ALSO: The Next Great Dividend Stocks of the S&P 500
Deere also boasts another attribute that Buffett cherishes: The company has been disciplined about returning capital to shareholders, including via stock buybacks, which have shrunk total shares outstanding by 29% over the past 10 years. Research firm Morningstar, which grades companies for their stewardship of investors' capital, rates Deere as "exemplary" -- a grade given to just 12% of the companies that Morningstar tracks.
Share price: $25.26
52-week low/high: $20.67 - $36.50
Market capitalization: $6.0 billion
Price-earnings ratio: 21
Dividend yield: 0%
Ownership status: Berkshire already owns it
One of Buffett's cardinal investing rules is to avoid an industry's weak players. He wants strong franchises that lead rather than follow. That's what Axalta Coating Systems ( AXTA ) brings to Buffett's table. The 150-year-old company, once part of DuPont ( DD , $60.42), has about 25% of theglobal marketfor paint and other coatings used in auto repair and refinishing, outselling such rivals as PPG Industries ( PPG , $97.01) and BASF ( BASFY , $65.76). Berkshire initially bought 20 million Axalta shares from controlling investor Carlyle Group in April 2015, and it has added more since, including 124,000 shares in the fourth quarter, bringing its stake to 9.8%.
So far this year, Axalta's shares have slid with the rest of the market. They fell as low as $20.67 in February, down from a peak of $36.50 last summer. The stock has rebounded somewhat since the company reported fourth-quarter results. Excluding the depressing effect of the U.S. dollar's strength against other currencies, Axalta's global sales rose 4.5% in the fourth quarter, to $1 billion. The company earned 16 cents per share, compared with a loss of one cent per share a year earlier.
One issue facing Axalta is the need to reduce heavy debt taken on in its split from DuPont. That debt obviously didn't deter Berkshire from investing in the firm, but it limits Axalta's near-term earnings power. Over the longer term, a key question is whether self-driving cars will reduce accidents and therefore demand for auto-body repairs. The minds at Berkshire, of course, know all this -- and still chose to become a major Axalta shareholder, adding it to a stable of auto-related investments that includes lubricants firm Lubrizol (a fully owned Berkshire subsidiary), a 6.2% stake in brake manufacturer Wabco Holdings ( WBC , $93.77), a 3.3% stake in General Motors ( GM , $29.50) and total ownership of the ubiquitous Geico insurance business.
Share price: $47.70
52-week low/high: $36.21 - $55.95
Market capitalization: $14.4 billion
Price-earnings ratio: 14
Dividend yield: 5.4%
Ownership status: Berkshire should buy it
As the plunge in energy prices accelerated over the past year, it was inevitable that investors would start dumping anything tied to the industry -- even stocks of companies that had little exposure to oil and gas prices. One such victim was Spectra Energy Partners ( SEP ), a master limited partnership that owns major natural gas pipelines and storage facilities in the East and the South. MLPs are set up to pay their owners whatever cash flow the business doesn't need for debt service or capital spending. Spectra's shares, or units, slid from $60.07 in 2014 to a low of $36.21 last year, even though most of Spectra's revenue comes from set fees paid by gas customers under long-term contracts. The units have since rebounded as more investors have caught on, but the company still pays a hefty yield of 5.4% based on the current annualized distribution of $2.555 per unit. What's more, brokerage RBC Capital projects that Spectra's distributions will jump 8.1% this year and 7.5% in 2017. For Buffett, who appreciates rising dividends, Spectra would seem to be an alluring prospect.
Yet instead of buying battered energy MLPs, Buffett's Berkshire Hathaway went another route: It snapped up 26 million shares of Kinder Morgan ( KMI ), $17.75) last quarter. The attraction? Kinder is the largest U.S. energy infrastructure firm, with pipelines and other facilities nationwide. But it isn't an MLP. When Kinder's stock crashed last year on worries about high debt levels, the firm bit the bullet and slashed its dividend by 75% in December, aiming to use the savings to pay down debt. Why would Berkshire move in? Perhaps because it's easy to believe that the worst is over for Kinder, and buyers now are getting premier energy assets in the U.S. at a deeply depressed price. Also, MLPs can complicate your tax return (don't buy one without consulting your tax adviser), but Kinder avoids that. Although Kinder's current yield of 2.8% is far below Spectra's, Kinder may make more sense than Spectra for investors who believe Berkshire has flagged a great long-term bargain.
SEE ALSO: 7 Energy Stocks to Buy While Oil Prices Are Cheap
Share price: $212.60
52-week low/high: $176.63 - $312.00
Market capitalization: $13.0 billion
Price-earnings ratio: 13
Dividend yield: 0%
Ownership status: Berkshire should buy it
One of Buffett's classic bits ofinvestment adviceis to "be greedy when others are fearful." Some Wall Street analysts believe that shares of Alliance Data Systems ( ADS ) have been wrongly trashed by fearful investors. Alliance, which had $6.4 billion in revenues last year, operates mainly in two businesses. One is managing private-label credit cards, such as those offered by major retailers. The other is providing data-driven marketing services -- mainly, tracking consumers' purchases to help merchants target their marketing to keep customers coming back. As worries about the weak global economy have deepened lately, financial stocks have been hit hard because of fears that loan losses could surge, including on credit cards. Alliance's shares crashed from a high of $312 in 2015 to a low of $176.63 in February, before rebounding a bit recently.
Ramsey El-Assal, an analyst at brokerage Jefferies, says the stock's plunge is "baking in severe credit losses" that are unlikely to materialize. As soon as that scare abates, he said, the stock should recover as investors focus on the "resurgence" of private-label credit cards that Alliance is riding, and on merchants' rising demand for the firm's data-based marketing programs. Based on analysts' average estimates, Alliance in 2016 is expected to post "core" earnings of $16.89 per share this year, up 12% from 2015. Core earnings adds back certain noncash expenses. Using that measure, the stock's 2016 price-earnings ratio is a modest 13.
If Alliance's card business is as strong as analysts believe, that could impress Buffett, who knows something about the industry: Berkshire owns a 15.3% stake in American Express ( AXP , $55.39) and small stakes in card processors MasterCard ( MA , $87.42) and Visa ( V , $73.27). But what might impress Buffett most is Alliance's track record of returning cash to investors. Via buybacks, Alliance has shrunk the number of shares outstanding by 24% over the past 10 years.
Share price: $43.32
52-week low/high: $36.36 - $65.20
Market capitalization: $8.0 billion
Price-earnings ratio: 11
Dividend yield: 2.9%
Ownership status: Berkshire should buy it
Buffett doesn't own shares in the legendary U.S. motorcycle manufacturer, but for years some analysts have repeatedly raised the question: Why not? That talk may have begun in the aftermath of the 2008 financial crash, when Buffett stepped in to help Harley-Davidson ( HOG ) survive -- for a price. Harley needed a loan so it could keep offering financing to its customers. Berkshire agreed to a $300 million, five-year credit deal. The interest rate: a steep 15%. Buffett might wish he had bought some Harley stock, too. The shares briefly fell below $10 in 2009, then went screaming higher through 2013, peaking at $74.13 in 2014.
Since then, however, the stock has been cut in half as sales and earnings have stagnated. The dollar's strength since the spring of 2014 has given foreign cycle makers a leg up in the competition. And some analysts worry that Harley hasn't done enough to court younger customers, as its core fan group of aging males gets, well, more aged. "Now is the time for us to dial things up," CEO Matt Levatich told investors in October. That dial-up includes a sharp rise in marketing and revved-up spending on new bike models. Wall Street analysts on average see sales of $5.3 billion in 2016 and profit of $3.99 per share, up 8% from last year's depressed results.
Like Coke, Deere and See's Candies, Harley is the kind of iconic brand that Buffett loves to own, says Berkshire-watcher Kass. Brokerage Robert W. Baird & Co. says that Harley checks another one of Buffett's favorite boxes: The firm is committed to returning capital to shareholders through stock buybacks and dividends. With the March payment, the dividend rate rises 13%. Finally, there's this interesting side note: Berkshire last year bought Detlev Louis Motorrad-Vertriebs, a major German retailer of clothing ... for bikers.
Share price: $75.79
52-week low/high: $66.20 - $149.12
Market capitalization: $5.4 billion
Price-earnings ratio: 11
Dividend yield: 1.8%
Ownership status: Berkshire should buy it
The sound-system giant has a number of key attributes that might attract maestro Buffett. Harman International ( HAR ) owns a number of well-known brands, including Harman Kardon, JBL and Infinity. But its largest business now is technology systems for the "connected car." That means one platform that integrates high-quality sound, the Internet, safety features, cybersecurity and navigation aids. CEO Dinesh Paliwal expects to double Harman's annual sales, which were $6.2 billion in the fiscal year that ended last June, over the next five years as cars get loaded with more tech. But some investors have gotten cold feet, fearful that despite Harman's relationships with major automakers, it might lose the connected-car race to much bigger players, such as Apple ( AAPL , $96.76). As a result, Harman stock has been cut in half over the past year.
Harman's fans say the drop is a gift to bargain hunters. Analysts on average estimate that Harman will earn $6.50 per share in the fiscal year that ends this June, which would be a 14% gain from fiscal 2015. That gives the stock a P/E of less than 12, which, if nothing else, ought to reduce the risk in the shares.
Brokerage William Blair says that mid-priced cars now are the biggest source of orders for Harman's systems, indicating that demand has broadened beyond the luxury-car niche. Brokerage Barclays calls Harman "the best pure-play option to capitalize on growth in infotainment." Why might that appeal to Berkshire? Harman is at the crossroads of two industries Berkshire has favored. One is autos (see Axalta Coating Systems). The other is entertainment. Berkshire has stakes in content providers including Liberty Media ( LMCA , $35.29), Twenty-First Century Fox ( FOXA , $27.38) and Media General ( MEG , $16.19). Harman would be an interesting complement to those lineups.
SEE ALSO: 9 Great Dividend Stocks for 2016
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Share price: $47.75 52-week low/high: $44.50 - $58.77 Market capitalization: $243.2 billion Price-earnings ratio: 11 Dividend yield: 3.1% Ownership status: Berkshire already owns it If there's one stock that epitomizes Buffett's devotion to companies he likes, it's probably Wells Fargo ( WFC ). Investors have had plenty of legitimate reasons to sell, including the weak global economy, rising energy-loan defaults as crude oil prices have crashed, and new calls to break up the megabanks -- a view even espoused by Neel Kashkari, the new president of the Minneapolis Federal Reserve Bank. Share price: $25.26 52-week low/high: $20.67 - $36.50 Market capitalization: $6.0 billion Price-earnings ratio: 21 Dividend yield: 0% Ownership status: Berkshire already owns it One of Buffett's cardinal investing rules is to avoid an industry's weak players.
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Share price: $78.76 52-week low/high: $69.79 - $94.12 Market capitalization: $41.5 billion Price-earnings ratio: 12 Dividend yield: 2.8% Ownership status: Berkshire already owns it At a time when many investors worldwide are focused on whether crude oil prices are finally bottoming, Buffett's hefty purchases of Phillips 66 ( PSX ) shares recently were bound to grab headlines. Share price: $79.60 52-week low/high: $70.16 - $98.23 Market capitalization: $$25.2 billion Price-earnings ratio: 20 Dividend yield: 3.0% Ownership status: Berkshire already owns it Berkshire Hathaway was a big buyer of farm machinery leader Deere ( DE ) in the fourth quarter of 2015, adding 5.8 million shares to a stake Buffett Co. have had since at least 2014. SEE ALSO: 7 Energy Stocks to Buy While Oil Prices Are Cheap Share price: $212.60 52-week low/high: $176.63 - $312.00 Market capitalization: $13.0 billion Price-earnings ratio: 13 Dividend yield: 0% Ownership status: Berkshire should buy it One of Buffett's classic bits ofinvestment adviceis to "be greedy when others are fearful."
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Share price: $79.60 52-week low/high: $70.16 - $98.23 Market capitalization: $$25.2 billion Price-earnings ratio: 20 Dividend yield: 3.0% Ownership status: Berkshire already owns it Berkshire Hathaway was a big buyer of farm machinery leader Deere ( DE ) in the fourth quarter of 2015, adding 5.8 million shares to a stake Buffett Co. have had since at least 2014. Share price: $47.70 52-week low/high: $36.21 - $55.95 Market capitalization: $14.4 billion Price-earnings ratio: 14 Dividend yield: 5.4% Ownership status: Berkshire should buy it As the plunge in energy prices accelerated over the past year, it was inevitable that investors would start dumping anything tied to the industry -- even stocks of companies that had little exposure to oil and gas prices. Share price: $43.32 52-week low/high: $36.36 - $65.20 Market capitalization: $8.0 billion Price-earnings ratio: 11 Dividend yield: 2.9% Ownership status: Berkshire should buy it Buffett doesn't own shares in the legendary U.S. motorcycle manufacturer, but for years some analysts have repeatedly raised the question: Why not?
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At the stock's current price, investors who want to join Buffett in Phillips would pay about the same price Berkshire has paid this year and would get a 2.8% dividend yield. Share price: $79.60 52-week low/high: $70.16 - $98.23 Market capitalization: $$25.2 billion Price-earnings ratio: 20 Dividend yield: 3.0% Ownership status: Berkshire already owns it Berkshire Hathaway was a big buyer of farm machinery leader Deere ( DE ) in the fourth quarter of 2015, adding 5.8 million shares to a stake Buffett Co. have had since at least 2014. Wall Street analysts on average see sales of $5.3 billion in 2016 and profit of $3.99 per share, up 8% from last year's depressed results.
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722679.0
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2016-02-27 00:00:00 UTC
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3 Stocks Warren Buffett Added To Last Quarter
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https://www.nasdaq.com/articles/3-stocks-warren-buffett-added-last-quarter-2016-02-27
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Billionaire investor Warren Buffett may not be one of your Facebook friends, but you can still know what stocks he's buying. Big-time investors such as Buffett submit a 13F report to the Securities and Exchange Commission every quarter, highlighting what stocks they're buying and selling. Last quarter, Buffett boosted his exposure to Wells Fargo , Deere & Co. , and Liberty Global plc . Let's take a closer look at why the Oracle of Omaha wants to own more of these companies and if they might be worth owning in your portfolio, too.
Bigger spreads, bigger profit
Wells Fargo has been a big holding for Warren Buffett's Berkshire Hathaway for years, and last quarter, Buffett increased his stake in the nation's biggest mortgage lender by 9.4 million shares.
Buffett now owns 479.7 million shares in Wells Fargo, and since he's the bank's biggest shareholder, it's pretty clear that he thinks Wells Fargo has plenty of opportunity ahead of it. The economy continues to grow, albeit tepidly, and with the Federal Reserve shifting to rising interest rates, spreads between borrowing and lending rates should widen, providing profit tailwinds.
Last quarter, total average loans grew 7% to $912.3 billion, and net income totaled $5.7 billion. Net income for the full year was $23 billion, in line with 2014, and rising short-term rates could help lift results in 2016. The bank cited higher short-term rates as one reason its net interest income jumped $131 million year over year in Q4.
Given that the bank enjoys solid loan demand, it boasts arguably best-in-show financials, and its shares yield about 3%, investors might want to join Warren Buffett by making Wells Fargo a core holding in their portfolios, too.
SOURCE: DEERE & CO.
Planting seeds for growth
Buffett also bought more shares in agricultural equipment maker Deere & Company.
Berkshire Hathaway added 5.8 million shares of Deere & Co., and it now owns 22.9 million shares in the company overall.
The 34% increase in Buffett's stake suggests confidence that worry over global economic growth in Asia and Europe will ease and that rebounding crude oil prices will correlate to a bounce back in grain prices that could support equipment demand.
Last quarter, Deere & Co.'s management reported that fiscal first-quarter sales fell 13% year over year, and that it forecast an additional 10% drop in 2016.
That's not very bullish, but it appears that Buffett is willing to play the long game and assume that this is about the worst it will get for Deere & Co. If so, it might not be a bad bet. Even with all the headwinds, Deere & Co.'s C-suite still thinks it will deliver earnings of $1.3 billion this year.
Global quad play
Following the purchase of 587,011 shares last quarter, Berkshire Hathaway's 12.5 million-share position makes it Liberty Global's third biggest shareholder.
Buffett has always been a fan of great management teams, and there may be no better media CEO than Liberty Global's John Malone. Malone has been busy transforming Liberty Global into the European leader in media services, and recent deals that expand it into mobile position it nicely to pitch quad-play (television, telephone, Internet, and mobile) services to subscribers.
Earlier this month, Liberty Global reported that it's partnering with Vodafone to create a joint venture in the Netherlands to offer quad-play services, and last year, Malone spent $1.3 billion acquiring Belgian mobile operator Base.
Because Liberty Global's subscribers provide it with mountainous free cash flow that's growing thanks to new services, Buffett may keep this position for the long haul and if so, then Liberty Global shares may be worth owning.
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The article 3 Stocks Warren Buffett Added To Last Quarter originally appeared on Fool.com.
Todd Campbell has no position in any stocks mentioned. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway and Wells Fargo. The Motley Fool is short Deere & Company and has the following options: short March 2016 $52 puts on Wells Fargo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Given that the bank enjoys solid loan demand, it boasts arguably best-in-show financials, and its shares yield about 3%, investors might want to join Warren Buffett by making Wells Fargo a core holding in their portfolios, too. Last quarter, Buffett boosted his exposure to Wells Fargo , Deere & Co. , and Liberty Global plc . Bigger spreads, bigger profit Wells Fargo has been a big holding for Warren Buffett's Berkshire Hathaway for years, and last quarter, Buffett increased his stake in the nation's biggest mortgage lender by 9.4 million shares.
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Bigger spreads, bigger profit Wells Fargo has been a big holding for Warren Buffett's Berkshire Hathaway for years, and last quarter, Buffett increased his stake in the nation's biggest mortgage lender by 9.4 million shares. Berkshire Hathaway added 5.8 million shares of Deere & Co., and it now owns 22.9 million shares in the company overall. Global quad play Following the purchase of 587,011 shares last quarter, Berkshire Hathaway's 12.5 million-share position makes it Liberty Global's third biggest shareholder.
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Bigger spreads, bigger profit Wells Fargo has been a big holding for Warren Buffett's Berkshire Hathaway for years, and last quarter, Buffett increased his stake in the nation's biggest mortgage lender by 9.4 million shares. Buffett now owns 479.7 million shares in Wells Fargo, and since he's the bank's biggest shareholder, it's pretty clear that he thinks Wells Fargo has plenty of opportunity ahead of it. Because Liberty Global's subscribers provide it with mountainous free cash flow that's growing thanks to new services, Buffett may keep this position for the long haul and if so, then Liberty Global shares may be worth owning.
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Berkshire Hathaway added 5.8 million shares of Deere & Co., and it now owns 22.9 million shares in the company overall. Because Liberty Global's subscribers provide it with mountainous free cash flow that's growing thanks to new services, Buffett may keep this position for the long haul and if so, then Liberty Global shares may be worth owning. Last quarter, Buffett boosted his exposure to Wells Fargo , Deere & Co. , and Liberty Global plc .
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722680.0
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2016-02-26 00:00:00 UTC
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Deere a Top Socially Responsible Dividend Stock With 3.0% Yield (DE)
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https://www.nasdaq.com/articles/deere-top-socially-responsible-dividend-stock-30-yield-de-2016-02-26
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Deere & Co. (Symbol: DE) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 3.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society - for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel , Deere & Co. is a member of both the iShares MSCI USA ESG Select Social Index Fund ETF ( KLD ), making up 0.63% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), where DE makes up 0.33% of the underlying holdings of the fund.
The annualized dividend paid by Deere & Co. is $2.40/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/29/2016. Below is a long-term dividend history chart for DE, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
DE operates in the Industrial Machinery & Equipment sector, among companies like Danaher Corp. ( DHR ), and Illinois Tool Works, Inc. ( ITW ).
Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society - for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol. Below is a long-term dividend history chart for DE, which the DividendRank report stressed as being of key importance. DE operates in the Industrial Machinery & Equipment sector, among companies like Danaher Corp. ( DHR ), and Illinois Tool Works, Inc. ( ITW ).
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Deere & Co. (Symbol: DE) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 3.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel , Deere & Co. is a member of both the iShares MSCI USA ESG Select Social Index Fund ETF ( KLD ), making up 0.63% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), where DE makes up 0.33% of the underlying holdings of the fund. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Co. (Symbol: DE) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 3.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel , Deere & Co. is a member of both the iShares MSCI USA ESG Select Social Index Fund ETF ( KLD ), making up 0.63% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), where DE makes up 0.33% of the underlying holdings of the fund. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2016-02-22 00:00:00 UTC
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Company News for February 22, 2016
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https://www.nasdaq.com/articles/company-news-for-february-22-2016-2016-02-22
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• Shares of Nordstrom Inc ( JWN ) decreased 6.7% after posting fiscal fourth quarter earnings of $Array.Array7 per share, lagging the Zacks Consensus Estimate of $Array.22 per share
• TrueCar, Inc's ( TRUE ) shares plunged Array2.7% after reporting fourth quarter revenues of $64 million, lower than the Zacks Consensus Estimate of $65 million
• Shares of Boston Beer Company, Inc ( SAM ) fell Array.9% after posting fourth quarter revenues of $2Array5.Array million, missing the Zacks Consensus Estimate of $2Array8 million
• Deere & Company's ( DE ) shares dropped 4.2% after reporting fiscal first quarter revenues of $4.77 billion, missing the Zacks Consensus Estimate of $4.79 billion
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NORDSTROM INC (JWN): Free Stock Analysis Report
TRUECAR INC (TRUE): Free Stock Analysis Report
BOSTON BEER INC (SAM): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Shares of Nordstrom Inc ( JWN ) decreased 6.7% after posting fiscal fourth quarter earnings of $Array.Array7 per share, lagging the Zacks Consensus Estimate of $Array.22 per share • TrueCar, Inc's ( TRUE ) shares plunged Array2.7% after reporting fourth quarter revenues of $64 million, lower than the Zacks Consensus Estimate of $65 million • Shares of Boston Beer Company, Inc ( SAM ) fell Array.9% after posting fourth quarter revenues of $2Array5.Array million, missing the Zacks Consensus Estimate of $2Array8 million • Deere & Company's ( DE ) shares dropped 4.2% after reporting fiscal first quarter revenues of $4.77 billion, missing the Zacks Consensus Estimate of $4.79 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report NORDSTROM INC (JWN): Free Stock Analysis Report TRUECAR INC (TRUE): Free Stock Analysis Report BOSTON BEER INC (SAM): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Shares of Nordstrom Inc ( JWN ) decreased 6.7% after posting fiscal fourth quarter earnings of $Array.Array7 per share, lagging the Zacks Consensus Estimate of $Array.22 per share • TrueCar, Inc's ( TRUE ) shares plunged Array2.7% after reporting fourth quarter revenues of $64 million, lower than the Zacks Consensus Estimate of $65 million • Shares of Boston Beer Company, Inc ( SAM ) fell Array.9% after posting fourth quarter revenues of $2Array5.Array million, missing the Zacks Consensus Estimate of $2Array8 million • Deere & Company's ( DE ) shares dropped 4.2% after reporting fiscal first quarter revenues of $4.77 billion, missing the Zacks Consensus Estimate of $4.79 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report NORDSTROM INC (JWN): Free Stock Analysis Report TRUECAR INC (TRUE): Free Stock Analysis Report BOSTON BEER INC (SAM): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Shares of Nordstrom Inc ( JWN ) decreased 6.7% after posting fiscal fourth quarter earnings of $Array.Array7 per share, lagging the Zacks Consensus Estimate of $Array.22 per share • TrueCar, Inc's ( TRUE ) shares plunged Array2.7% after reporting fourth quarter revenues of $64 million, lower than the Zacks Consensus Estimate of $65 million • Shares of Boston Beer Company, Inc ( SAM ) fell Array.9% after posting fourth quarter revenues of $2Array5.Array million, missing the Zacks Consensus Estimate of $2Array8 million • Deere & Company's ( DE ) shares dropped 4.2% after reporting fiscal first quarter revenues of $4.77 billion, missing the Zacks Consensus Estimate of $4.79 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report NORDSTROM INC (JWN): Free Stock Analysis Report TRUECAR INC (TRUE): Free Stock Analysis Report BOSTON BEER INC (SAM): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Shares of Nordstrom Inc ( JWN ) decreased 6.7% after posting fiscal fourth quarter earnings of $Array.Array7 per share, lagging the Zacks Consensus Estimate of $Array.22 per share • TrueCar, Inc's ( TRUE ) shares plunged Array2.7% after reporting fourth quarter revenues of $64 million, lower than the Zacks Consensus Estimate of $65 million • Shares of Boston Beer Company, Inc ( SAM ) fell Array.9% after posting fourth quarter revenues of $2Array5.Array million, missing the Zacks Consensus Estimate of $2Array8 million • Deere & Company's ( DE ) shares dropped 4.2% after reporting fiscal first quarter revenues of $4.77 billion, missing the Zacks Consensus Estimate of $4.79 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report NORDSTROM INC (JWN): Free Stock Analysis Report TRUECAR INC (TRUE): Free Stock Analysis Report BOSTON BEER INC (SAM): Free Stock Analysis Report DEERE & CO (DE): 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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a97b74e3-eca1-4ec4-b78f-b3aabb15bcd7
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722682.0
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2016-02-22 00:00:00 UTC
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John Deere Q1 Results Drag Down Agribusiness ETFs
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DE
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https://www.nasdaq.com/articles/john-deere-q1-results-drag-down-agribusiness-etfs-2016-02-22
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nan
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nan
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Before the opening bell on Friday, the world's largest agricultural equipment maker, Deere & Co ( DE ), reported disappointing fiscal first-quarter 20Array6 results. Though the company surpassed our earnings estimates, it missed on revenues and provided a bleak outlook for full fiscal 20Array6, reflecting another year of declining sales and continued pullback in the global agricultural sector.
Deere QArray Results in Focus
Earnings per share came in at 80 cents, comfortably beating the Zacks Consensus Estimate of 7Array cents but deteriorating 28.6% from the year-ago period. Revenues declined Array5% year over year to $4.77 billion and lagged our estimate of $4.79 billion.
The global agricultural slowdown and weakness in construction equipment markets were the major culprits of the lackluster revenue performance and this trend is likely to continue this year. Additionally, a strong dollar continues to weigh on the company's profitability (read: Top and Flop Currency ETFs YTD ).
As a result, the manufacturer expects 20Array6 to be another challenging year with overall equipment sales expected to drop 8% for the second quarter and Array0% for fiscal 20Array6. Segment wise, the company expects global construction and forestry equipment sales to decline about ArrayArray% in fiscal 20Array6, including negative currency translation of 2%, and global sales of agriculture and turf equipment to drop Array0%, including negative currency translation of 4%. The company also expects net income of about $Array.3 billion for fiscal 20Array6.
Market Impact
Based on bleak outlook, shares of DE dropped as much as 4.7% on the day while trading volume was also heavy with around 9 million shares exchanged in hand compared with the 3-month average of around 3.6 million shares. Rough trading is expected to continue in the ETF world as well over the next few days, especially among those that have the largest allocation to this big agricultural equipment maker (see: all Materials ETFs here ).
However, investors should closely monitor the movement of these funds and the stock, and could tap the beaten down prices with a low risk in the basket form. This is especially true as Deere has a solid Zacks Rank #2 (Buy) with additional flavors of a Value and Momentum Style Score of 'B' each.
iShares MSCI Global Agriculture Producers ETF ( VEGI )
This fund follows the MSCI ACWI Select Agriculture Producers Investable Market Index and offers investors global exposure to Array28 firms that are primarily engaged in the business of agriculture. Here, Deere occupies the third position with a 7.9% allocation. From a sector look, agricultural chemicals takes the largest share at 47%, closely followed by farming/fishing (20%) and industrial engineering (Array8%).
American firms dominate the fund's holding with 45.4% of total assets, followed by a double-digit exposure to Switzerland. The ETF is less popular and illiquid with $24.7 million in its asset base and around Array0,000 shares in average daily volume. The ETF charges 39 bps in fees per year from investors and has shed 2.2% post Deere results.
Market Vectors Agribusiness ETF ( MOO )
This fund is by far the most popular and liquid choice in the space with AUM of about $758.4 million and average daily volume of nearly 2Array5,000 shares. It tracks the Market Vectors Global Agribusiness Index and charges 57 bps in annual fees. In total, the fund holds 53 securities in its basket with DE occupying the third spot at 6.8% of total assets (read: Market Crashing! ETFs & Stocks That Deserve Love ).
The product provides nice diversity across business segments with agricultural chemicals accounting for 37% share while industrial engineering (Array7%), farming/fishing (Array4%) and packaged food products (Array3%) round off the next three spots. In terms of country allocation, half of the portfolio goes to the U.S. firms while Canada, Switzerland and Japan get a decent exposure of around 8% each. The fund lost Array.5% on the day of the earnings release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
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 & CO (DE): Free Stock Analysis Report
ISHARS-M GL AGR (VEGI): ETF Research Reports
MKT VEC-AGRIBUS (MOO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though the company surpassed our earnings estimates, it missed on revenues and provided a bleak outlook for full fiscal 20Array6, reflecting another year of declining sales and continued pullback in the global agricultural sector. Before the opening bell on Friday, the world's largest agricultural equipment maker, Deere & Co ( DE ), reported disappointing fiscal first-quarter 20Array6 results. Deere QArray Results in Focus Earnings per share came in at 80 cents, comfortably beating the Zacks Consensus Estimate of 7Array cents but deteriorating 28.6% from the year-ago period.
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Segment wise, the company expects global construction and forestry equipment sales to decline about ArrayArray% in fiscal 20Array6, including negative currency translation of 2%, and global sales of agriculture and turf equipment to drop Array0%, including negative currency translation of 4%. iShares MSCI Global Agriculture Producers ETF ( VEGI ) This fund follows the MSCI ACWI Select Agriculture Producers Investable Market Index and offers investors global exposure to Array28 firms that are primarily engaged in the business of agriculture. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ISHARS-M GL AGR (VEGI): ETF Research Reports MKT VEC-AGRIBUS (MOO): ETF Research Reports To read this article on Zacks.com click here.
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Segment wise, the company expects global construction and forestry equipment sales to decline about ArrayArray% in fiscal 20Array6, including negative currency translation of 2%, and global sales of agriculture and turf equipment to drop Array0%, including negative currency translation of 4%. iShares MSCI Global Agriculture Producers ETF ( VEGI ) This fund follows the MSCI ACWI Select Agriculture Producers Investable Market Index and offers investors global exposure to Array28 firms that are primarily engaged in the business of agriculture. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ISHARS-M GL AGR (VEGI): ETF Research Reports MKT VEC-AGRIBUS (MOO): ETF Research Reports To read this article on Zacks.com click here.
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Though the company surpassed our earnings estimates, it missed on revenues and provided a bleak outlook for full fiscal 20Array6, reflecting another year of declining sales and continued pullback in the global agricultural sector. Segment wise, the company expects global construction and forestry equipment sales to decline about ArrayArray% in fiscal 20Array6, including negative currency translation of 2%, and global sales of agriculture and turf equipment to drop Array0%, including negative currency translation of 4%. Before the opening bell on Friday, the world's largest agricultural equipment maker, Deere & Co ( DE ), reported disappointing fiscal first-quarter 20Array6 results.
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b6aacfc3-160f-4077-baeb-832e273be02b
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722683.0
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2016-02-20 00:00:00 UTC
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Buffett Buys These 3 Stocks, Should You Too?
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DE
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https://www.nasdaq.com/articles/buffett-buys-these-3-stocks-should-you-too-2016-02-20
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nan
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nan
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Warren Buffett's uber long-term approach to investing is legendary, and because Buffett remains one of the globe's wealthiest people, investors might want to follow in his footsteps -- especially, given market volatility lately. With that in mind, let's learn more about Buffett's big buys last quarter.
No. 1: Kinder Morgan
It wasn't all that long ago that Buffett dodged a big drop in energy stocks by paring back his exposure to them; but with energy stocks collapsing, and bargains in the discount bin, Buffett is back to buying. Last quarter, the Oracle of Omaha stepped up and acquired 26,533,525 shares of Kinder Morgan, a big enough stake to make it worth $466 million of his Berkshire Hathaway's $123 billion portfolio.
It appears Buffett's timing was spot on. Shares in Kinder Morgan fell 63%, to $14.79 in 2015, and they've already rallied 16% since the start of the year. That's pretty darn good.
Buffett's decision to buy Kinder Morgan could have been made because he felt energy stocks fell too far too fast, and because he believed that production cuts would shore up per-barrel oil prices . The number of active rigs drilling for oil in North America dropped 56% in the past year, and major oil producing countries, including Saudi Arabia, recently announced plans to freeze oil production at January's level, further supporting crude oil prices .
The macro environment, however, may only be one reason why Buffett warmed up to Kinder Morgan. Traditionally, Buffett prefers that corporations spend cash on their businesses, rather than dividends, and that mantra dovetails nicely with Kinder Morgan's decision in December to shift money from dividends to debt repayment.
Only time will tell if the spike in oil prices, and Buffett's interest in Kinder Morgan, will be long lasting. In the past, Buffett has been willing to trade around in energy stocks; if investors follow Buffett into this one, they might want to watch it closely.
Source: Deere & Co.
No. 2: Deere & Co
Also intriguing is Buffett's decision to increase his stake in the agricultural equipment maker Deere & Company.
Deere & Co sales are tightly tied to global economic growth, and with questions remaining in China and Europe, and rising interest rates creating uncertainty in the U.S., it would seem there's plenty of reason to be cautious -- especially when the company's management recently reported that fiscal first-quarter sales slumped 13% year over year, and that sales will slip by another 10% this year.
Yet, rather than taking a wait-and-see approach to the company, Buffett upped his position in Deere & Co to 22.88 million shares last quarter. Buffett's decision suggests he thinks a recovery in oil could coincide with a recovery in grains, like corn and wheat, that have also fallen significantly in the past year. Of course, no one knows if grain prices can hold their recent lows, climb, and fatten farmer wallets again; but if prices do improve, then Buffett's bet on Deere & Co could prove savvy.
No.3: Liberty Global plc
Berkshire Hathaway's 12.5-million-share position in Liberty Global plc -- up 5% from last quarter -- makes it Liberty Global's third largest shareholder. Because Buffett has steadily increased his ownership in Europe's biggest cable group during the past year, it seems he has plenty of confidence in Liberty Global's billionaire Chairman John Malone, and Malone's strategy to expand the company into mobile services.
Recently, Liberty Global announced it's teaming up with Vodafone in the Netherlands in a joint-venture that creates a quad-play services powerhouse, and previously, Liberty Global spent $1.3 billion acquiring Belgian mobile operator Base. Both of those moves give Liberty Global plenty of up-selling opportunities to fuel growth.
Historically, Buffett has been a big fan of free cash flow and strong management teams. Because Liberty Global's free cash flow is growing, and Malone is arguably the best operator in the industry, there's little reason to think Buffett will sell soon. That could make this stock worth adding to portfolios, too.
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The article Buffett Buys These 3 Stocks, Should You Too? originally appeared on Fool.com.
Todd Campbell has no position in any stocks mentioned. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway and Kinder Morgan. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Last quarter, the Oracle of Omaha stepped up and acquired 26,533,525 shares of Kinder Morgan, a big enough stake to make it worth $466 million of his Berkshire Hathaway's $123 billion portfolio. Buffett's decision to buy Kinder Morgan could have been made because he felt energy stocks fell too far too fast, and because he believed that production cuts would shore up per-barrel oil prices . 1: Kinder Morgan It wasn't all that long ago that Buffett dodged a big drop in energy stocks by paring back his exposure to them; but with energy stocks collapsing, and bargains in the discount bin, Buffett is back to buying.
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Last quarter, the Oracle of Omaha stepped up and acquired 26,533,525 shares of Kinder Morgan, a big enough stake to make it worth $466 million of his Berkshire Hathaway's $123 billion portfolio. No.3: Liberty Global plc Berkshire Hathaway's 12.5-million-share position in Liberty Global plc -- up 5% from last quarter -- makes it Liberty Global's third largest shareholder. The Motley Fool owns shares of and recommends Berkshire Hathaway and Kinder Morgan.
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1: Kinder Morgan It wasn't all that long ago that Buffett dodged a big drop in energy stocks by paring back his exposure to them; but with energy stocks collapsing, and bargains in the discount bin, Buffett is back to buying. Deere & Co sales are tightly tied to global economic growth, and with questions remaining in China and Europe, and rising interest rates creating uncertainty in the U.S., it would seem there's plenty of reason to be cautious -- especially when the company's management recently reported that fiscal first-quarter sales slumped 13% year over year, and that sales will slip by another 10% this year. Because Buffett has steadily increased his ownership in Europe's biggest cable group during the past year, it seems he has plenty of confidence in Liberty Global's billionaire Chairman John Malone, and Malone's strategy to expand the company into mobile services.
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Only time will tell if the spike in oil prices, and Buffett's interest in Kinder Morgan, will be long lasting. The Motley Fool owns shares of and recommends Berkshire Hathaway and Kinder Morgan. The Motley Fool is short Deere & Company.
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7e6d7b86-c273-4265-90aa-c86f46a93c09
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722684.0
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2016-02-19 00:00:00 UTC
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Earnings Reaction History: Deere & Company, 40.0% Follow-Through Indicator, 2.8% Sensitive
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DE
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https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-400-follow-through-indicator-28-sensitive-2016-02
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nan
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nan
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Expected Earnings Release: 02/19/2016, Premarket
Avg. Extended-Hours Dollar Volume: $12,077,819
Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 20%
Average next regular session additional gain: 1.5%
Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 1.5%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 60%
Average next regular session additional loss: 1.9%
Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.9% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 1.5% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 1.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.9% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.9% by the following regular session close.
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Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 1.5% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 1.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.9% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.9% by the following regular session close.
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Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 20% Average next regular session additional gain: 1.5% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 1.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 60% Average next regular session additional loss: 1.9% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.9% by the following regular session close. Extended-Hours Dollar Volume: $12,077,819 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session.
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Extended-Hours Dollar Volume: $12,077,819 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
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2e1074ca-fb3a-4c63-9ed6-28d9a1b487cb
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722685.0
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2016-02-19 00:00:00 UTC
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Is Yahoo (YHOO) Putting Itself Up for Sale?
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DE
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https://www.nasdaq.com/articles/yahoo-yhoo-putting-itself-sale-2016-02-19
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nan
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nan
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Thursday, February Array8, 20Array6
(This is Mark Vickery covering for Sheraz Mian, who is off on business through the end of the month.)
Is Yahoo ( YHOO ) putting itself up for sale? The struggling Internet staple has formed an independent committee to determine what strategic alternatives the business should take. I guess laying off all those online magazine employees yesterday wasn't quite enough for Yahoo's board of directors.
It's called the Strategic Review Committee, and it has brought in Goldman Sachs ( GS ) and JPMorgan ( JPM ) to do the financial advising. Although the most crucial details won't be released until a final decision by the committee has been reached, one thing is for sure: Yahoo's significant stake in Alibaba ( BABA ) - basically China's version of Amazon ( AMZN ) - will be separated from the company. Because Yahoo's BABA stake is arguably its most valuable asset currently, it would stand to reason that other parts of Yahoo's business is likely to be jettisoned eventually, as well.
In other news, the Consumer Price Index was released this morning for the month of January, and the results are unchanged at +0.3%. Minus food and energy, the CPI is +Array.4 year over year. This is a measure of inflation, ultimately, and the upward direction on a yearly basis does seem to help bear out the decision by the Fed to raise interest rates a quarter point late last year. That the month-to-month rate is unchanged suggests pricing stability overall. Not a game-changer, but an item economists like to have in their tackle box.
The debate continues whether Apple ( AAPL ) should release iPhone records of the perpetrators of the tragic mass shooting in San Bernardino, CA last year. The FBI wants to force Apple's hand in bringing forth potential important information that may connect the shooters to terrorists on the other side of the globe. Apple CEO Tim Cook says no dice - privacy is privacy, and we don't make exceptions in this way. Which way do you think this should go?
In Q4 earnings news, John Deere & Co. ( DE ) missed its sales estimates and guided lower for full-year 20Array6. No rebound in the heavy machinery space at this point, apparently. After the bell Thursday, higher end retailer Nordstrom ( JWN ) posted a 29% decline in Q4 income for what was a challenging holiday season, especially for its in-store business. The brand's excellent in-store shopping reputation is simply melting away in the Amazon-dominated world of online shopping. To wit, Nordstrom's online business now makes up 20% on f the company's sales. JWN stock is down over 8% so far this morning.
Interested in a more detailed look at Q4 earnings season? Check out Sheraz Mian's latest Earnings Trends report released yesterday: Q4 Growth Challenge: S&P 500 vs. Russell 2000 .
Mark Vickery
Senior Editor
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
NORDSTROM INC (JWN): Free Stock Analysis Report
APPLE INC (AAPL): Free Stock Analysis Report
AMAZON.COM INC (AMZN): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
YAHOO! INC (YHOO): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
ALIBABA GROUP (BABA): 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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Although the most crucial details won't be released until a final decision by the committee has been reached, one thing is for sure: Yahoo's significant stake in Alibaba ( BABA ) - basically China's version of Amazon ( AMZN ) - will be separated from the company. The debate continues whether Apple ( AAPL ) should release iPhone records of the perpetrators of the tragic mass shooting in San Bernardino, CA last year. After the bell Thursday, higher end retailer Nordstrom ( JWN ) posted a 29% decline in Q4 income for what was a challenging holiday season, especially for its in-store business.
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Click to get this free report NORDSTROM INC (JWN): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMAZON.COM INC (AMZN): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report YAHOO! The struggling Internet staple has formed an independent committee to determine what strategic alternatives the business should take. Although the most crucial details won't be released until a final decision by the committee has been reached, one thing is for sure: Yahoo's significant stake in Alibaba ( BABA ) - basically China's version of Amazon ( AMZN ) - will be separated from the company.
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This is a measure of inflation, ultimately, and the upward direction on a yearly basis does seem to help bear out the decision by the Fed to raise interest rates a quarter point late last year. Click to get this free report NORDSTROM INC (JWN): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMAZON.COM INC (AMZN): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report YAHOO! The struggling Internet staple has formed an independent committee to determine what strategic alternatives the business should take.
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Interested in a more detailed look at Q4 earnings season? The struggling Internet staple has formed an independent committee to determine what strategic alternatives the business should take. Although the most crucial details won't be released until a final decision by the committee has been reached, one thing is for sure: Yahoo's significant stake in Alibaba ( BABA ) - basically China's version of Amazon ( AMZN ) - will be separated from the company.
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dd3a7cee-9e30-4159-800e-47145073369e
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722686.0
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2016-02-19 00:00:00 UTC
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Deere (DE) Beats Q1 Earnings, Lags Revenues, Cuts Outlook
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DE
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https://www.nasdaq.com/articles/deere-de-beats-q1-earnings-lags-revenues-cuts-outlook-2016-02-19
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nan
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nan
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Deere & Company 's DE first-quarter fiscal 20Array6 (ended Jan 3Array, 20Array6) earnings declined around 28.6% year over year to 80 cents per share owing to sluggish global markets for farm and construction equipment. Earnings, however, topped the Zacks Consensus Estimate of 7Array cents.
Operational Update
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $4.77 billion, down roughly Array5% year over year. Revenues missed the Zacks Consensus Estimate of $4.79 billion. Region-wise, equipment net sales were down Array8% in the U.S. and Canada, and 9% in the rest of the world.
Cost of sales in the quarter decreased Array3% year over year to $3.84 billion. Gross profit in the quarter came in at $929 million, down 2Array.6% year over year. Selling, administrative and general expenses decreased Array0% to $592.9 million. Operating profit declined around 36% year over year to $336 million.
Operating income from equipment operations plunged 48% year over year to $2Array4 million due to the impact of lower shipment volumes, less favorable product mix and unfavorable currency effects, partially offset by lower production costs, reduced selling administrative and general expenses and price realization.
Segment Performance
The Agriculture & Turf segment's sales decreased Array2% year over year to $3.6 billion due to lower shipment volumes and unfavorable effects of currency swings, partly offset by price realization. Operating profit at the segment slumped 46% year over year to $Array44 million as lower shipment volumes, less favorable product mix and unfavorable currency effects were partly offset by price realization, lower selling, administrative and general expenses and reduced production costs.
Construction & Forestry sales went down 23% year over year to $Array.Array7 billion impacted by lower shipment volumes and unfavorable currency impact, partly offset by price realization. Operating profit at the segment declined significantly year over year to $70 million.
Net revenues at Deere's Financial Services division totaled $636 million in the reported quarter, down 2% year over year. The segment's operating profit was $Array94 million, compared with $233 million in the prior-year quarter. Net income at the segment was $Array29.4 million compared with $Array56.8 million in the year-ago quarter.
The decline can be attributed to unfavorable effects of currency translation, higher losses on residual values mainly for construction equipment operating leases, less favorable financing spreads and a higher provision for credit losses, partly offset by lower selling, administrative and general expenses.
Financial Updates
Deere reported cash and cash equivalents of $3.46 billion at the end of first-quarter fiscal 20Array6 compared with $3.97 billion at the end of the prior-year quarter. The company reported cash usage of $777.6 million from operating activities in the first quarter compared with $5Array0 million in the prior-year quarter. As of the first-quarter end, long-term borrowings totaled $24.5 billion, compared with $24 billion in the first quarter of 20Array4.
Looking Ahead
Deere slashed the outlook for fiscal 20Array6. The company projects total equipment sales decline of Array0% year over year in fiscal 20Array6. Sales are also likely to deteriorate about 8% in the second quarter of fiscal 20Array6 from the year-ago quarter. The projection includes a negative currency-translation effect of about 3% for the full year and for the second quarter. For fiscal 20Array6, net income attributable to Deere is anticipated at around $Array.3 billion.
Segment-wise, Deere expects Agriculture and Turf equipment sales decline of Array0% in fiscal 20Array6, including an unfavorable currency-translation impact of about 4%. Industry sales for agricultural equipment in the U.S. and Canada are expected to be down Array5% to 20% in 20Array6 owing to low commodity prices and stagnant farm income.
In the EU28, sales are projected to be flat to down 5% due to low commodity prices and farm income, including potential pressure on the dairy sector. In South America, industry sales of tractors and combines are expected to decline Array0% to Array5% year over year due to economic uncertainty in Brazil and higher interest rates on government-sponsored financing.
Sales in Asia are projected to be flat to down modestly, largely because of the weakness in China. Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, gaining from new products and general economic growth.
The company foresees global sales for Construction & Forestry equipment to be down about ArrayArray% in 20Array6 including an unfavorable currency-translation effect of about 2%. The decline reflects impact of soft conditions in the North American energy sector, as well as lower sales outside the U.S. and Canada. In forestry, global sales are expected to be down 5% to Array0% in from last year levels primarily due to weaker demand in the U.S. and Canada. Net income from Financial Services is estimated at around $525 million for 20Array6.
Our View
Owing to the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Global trends based on population growth and rising living standards remain intact and are largely unaffected by periodic swings in farming economy.
However, declining crop prices, such as of corn and soybean, will affect farm income. This will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere. Moreover, the sluggish energy sector is a matter of concern.
Zacks Rank & Other Key Picks
At present, Deere has a Zacks Rank #Array (Strong Buy).
Other favorably ranked stocks in the same sector are Briggs & Stratton Corp. BGG , Albany International Corp. AIN and Caterpillar Inc. CAT . While Briggs & Stratton sports a Zacks Rank #Array, Albany and Caterpillar carry a Zacks Rank #2 (Buy).
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CATERPILLAR INC (CAT): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
BRIGGS & STRATT (BGG): Free Stock Analysis Report
ALBANY INTL A (AIN): 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 first-quarter fiscal 20Array6 (ended Jan 3Array, 20Array6) earnings declined around 28.6% year over year to 80 cents per share owing to sluggish global markets for farm and construction equipment. Cost of sales in the quarter decreased Array3% year over year to $3.84 billion. Selling, administrative and general expenses decreased Array0% to $592.9 million.
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Click to get this free report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report ALBANY INTL A (AIN): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company 's DE first-quarter fiscal 20Array6 (ended Jan 3Array, 20Array6) earnings declined around 28.6% year over year to 80 cents per share owing to sluggish global markets for farm and construction equipment. Cost of sales in the quarter decreased Array3% year over year to $3.84 billion.
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Click to get this free report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report ALBANY INTL A (AIN): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company 's DE first-quarter fiscal 20Array6 (ended Jan 3Array, 20Array6) earnings declined around 28.6% year over year to 80 cents per share owing to sluggish global markets for farm and construction equipment. Cost of sales in the quarter decreased Array3% year over year to $3.84 billion.
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The company projects total equipment sales decline of Array0% year over year in fiscal 20Array6. Our View Owing to the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Deere & Company 's DE first-quarter fiscal 20Array6 (ended Jan 3Array, 20Array6) earnings declined around 28.6% year over year to 80 cents per share owing to sluggish global markets for farm and construction equipment.
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722687.0
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2016-02-19 00:00:00 UTC
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Why Nordstrom Inc. and Deere & Company Slumped on a Flat Day for Stocks
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DE
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https://www.nasdaq.com/articles/why-nordstrom-inc-and-deere-company-slumped-flat-day-stocks-2016-02-19
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Stocks opened the trading session in negative territory but climbed throughout the day to end up roughly even. The Dow Jones Industrial Average lost 22 points, or 0.1% and the S&P 500 was flat, for no change on the day.
^DJI data by YCharts
Both indexes managed a strong week, though, notching gains of about 5%. As for individual stocks, Deere & Company and Nordstrom made notable negative moves today after posting their quarterly numbers before the opening bell.
John Deere's downgraded outlook
Deere's stock fell 4% after it announced surprisingly weak fourth-quarter results while forecasting a rough year ahead for the farm and construction equipment industries. Fiscal Q1 sales fell 13% and earnings plummeted by 29% as those key markets continued to shrink.
Source: John Deere.
Yet despite that cyclical drop, each of Deere's divisions stayed in the black this quarter. "All of Deere's businesses remained solidly profitable, benefiting from the sound execution of our business plans and the success of actions to develop a more responsive cost structure," CEO Samuel Allen said in a press release.
Deere lowered its full-year outlook and now sees overall sales falling by 10%. The global agriculture and turf business will take a bigger hit from exchange rate swings than originally projected, executives said, and construction equipment sales are now expected to fall 11% (compared to the 5% estimate issued in November). Deere's outlook for growth in the U.S. economy was also dialed back a notch.
A lower cost structure should allow the company to produce substantial profits, even if they aren't at high as investors would like. "Our forecast represents a level of performance much better than we have experienced in previous downturns," Allen explained. Net income is projected to be $1.3 billion this year, down from $1.9 billion in 2015 and $3.2 billion in 2014 .
Nordstrom's weak holiday results
Nordstrom fell 7% -- adding to a more than 30% decline for the stock over the past year -- after the department store retailer posted weak results for the key holiday-shopping quarter .
Comparable-store sales increased by just 1% in Q4, representing hardly any improvement over the prior quarter's 0.9% growth pace that management at the time called "disappointing." Gross profit slipped lower as well, falling by 2 percentage points to 35% of sales. Executives blamed an "elevated promotional environment" that required increased price cuts to generate significant customer traffic. The company did slightly better than the broader industry and can at least claim minor market share gains.
Source: Nordstrom Rack.
Management is also encouraged by the steady growth of Nordstrom's off-price business, which improved comps by a healthy 3.6%. That's why it plans to bring its Nordstrom Rack locations up to 60% of the store base by the end of this year. There are 20 such locations slated to open in 2016, compared to just 2 new traditional Nordstrom stores.
The retailer doesn't see a quick rebound in the cards. Total comps will be just 1% in 2016, Nordstrom predicted, down from last year's 2% pace. Profits should come in at $3.23 per share at the midpoint of guidance, which would represent no growth over last year's result. Weighing heavily on those results will be a planned entry into the Canadian market, which should cleave about $60 million out of earnings in 2016. Nordstrom still targets $20 billion of annual sales by 2020, up from $14 billion last year.
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The article Why Nordstrom Inc. and Deere & Company Slumped on a Flat Day for Stocks originally appeared on Fool.com.
Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool is short Deere & Company. The Motley Fool recommends Nordstrom. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for individual stocks, Deere & Company and Nordstrom made notable negative moves today after posting their quarterly numbers before the opening bell. ^DJI data by YCharts Both indexes managed a strong week, though, notching gains of about 5%. John Deere's downgraded outlook Deere's stock fell 4% after it announced surprisingly weak fourth-quarter results while forecasting a rough year ahead for the farm and construction equipment industries.
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John Deere's downgraded outlook Deere's stock fell 4% after it announced surprisingly weak fourth-quarter results while forecasting a rough year ahead for the farm and construction equipment industries. Nordstrom's weak holiday results Nordstrom fell 7% -- adding to a more than 30% decline for the stock over the past year -- after the department store retailer posted weak results for the key holiday-shopping quarter . ^DJI data by YCharts Both indexes managed a strong week, though, notching gains of about 5%.
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John Deere's downgraded outlook Deere's stock fell 4% after it announced surprisingly weak fourth-quarter results while forecasting a rough year ahead for the farm and construction equipment industries. Nordstrom's weak holiday results Nordstrom fell 7% -- adding to a more than 30% decline for the stock over the past year -- after the department store retailer posted weak results for the key holiday-shopping quarter . The article Why Nordstrom Inc. and Deere & Company Slumped on a Flat Day for Stocks originally appeared on Fool.com.
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Deere lowered its full-year outlook and now sees overall sales falling by 10%. The Motley Fool is short Deere & Company. ^DJI data by YCharts Both indexes managed a strong week, though, notching gains of about 5%.
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6d8c7763-e096-4ca5-bb93-811967fa907f
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722688.0
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2016-02-19 00:00:00 UTC
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Deere & Company (DE) Beats Q1 Earnings, Revenues Lag
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DE
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https://www.nasdaq.com/articles/deere-company-de-beats-q1-earnings-revenues-lag-2016-02-19
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nan
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Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $25 billion. It also produces a variety of commercial and consumer equipment; and a broad range of construction and forestry equipment. Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. On the contrary, Deere expects to be solidly profitable driven by increased global demand for food, shelter and infrastructure.
Investors have thus been eagerly awaiting the company's latest earnings report. Let's have a quick look at the Illinois-based company's first-quarter fiscal 20Array6 earnings release.
Estimate Trend & Surprise History
You should note that the earnings estimate revisions for Deere depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at 7Array cents for the first quarter.
Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 28.57%.
Earnings
Deere posted in earnings of 80 cents per share in the first quarter, beating the Zacks Consensus Estimate of 7Array cents. However, earnings plunged roughly 28.6% year over year due to sluggish global markets for farm and construction equipment.
Revenues
Deere reported first quarter revenues of $4.77 billion, falling short of the Zacks Consensus Estimate of $4.79 billion.
Key Stats/Developments to Note
Deere slashed outlook for fiscal 20Array6. The company projects total equipment sales to decline Array0% year over year in 20Array6 and to be down about 8% in the second quarter of the year compared with year-ago periods. The projection includes a negative currency-translation effect of about 3% for the full year and for the second quarter. For fiscal 20Array6, net income attributable to Deere & Company is anticipated to be about $Array.3 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #Array (Strong Buy) depicting the weak demand for agricultural equipment. However, this could change following Deere's earnings report which was just released.
Market Reaction
Deere shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Deere earnings report later!
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DEERE & CO (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. On the contrary, Deere expects to be solidly profitable driven by increased global demand for food, shelter and infrastructure.
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Earnings Deere posted in earnings of 80 cents per share in the first quarter, beating the Zacks Consensus Estimate of 7Array cents. Revenues Deere reported first quarter revenues of $4.77 billion, falling short of the Zacks Consensus Estimate of $4.79 billion. Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $25 billion.
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Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations. Earnings Deere posted in earnings of 80 cents per share in the first quarter, beating the Zacks Consensus Estimate of 7Array cents. Revenues Deere reported first quarter revenues of $4.77 billion, falling short of the Zacks Consensus Estimate of $4.79 billion.
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The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. However, this could change following Deere's earnings report which was just released. Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $25 billion.
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722689.0
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2016-02-18 00:00:00 UTC
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Deere (DE) to Report Q1 Earnings: Is a Surprise in Store?
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DE
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https://www.nasdaq.com/articles/deere-de-to-report-q1-earnings%3A-is-a-surprise-in-store-2016-02-18
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Deere & CompanyDE is expected to release first-quarter fiscal 20Array6 results before the opening bell on Feb Array9.
The company had reported better-than-expected earnings in the past, beating the Zacks Consensus Estimate in each of the trailing four quarters. The average positive surprise is 28.57%.
Let's see how things are shaping up for this announcement.
Factors to Consider
Deere expects total equipment sales to decline ArrayArray% year over year in the first quarter of fiscal 20Array6, including a negative currency translation effect of about 4%. Weak conditions in the energy sector and energy producing regions, especially in Canada, a decline in rental utilization rates and sluggish economic growth outside the U.S. are the persistent challenges for Deere.
Demand for Deere's agricultural equipment continues to be affected by low farm income, lower commodity prices and tight credit conditions. On the positive side, the present business situation for lawn, garden, and municipal equipment remain strong.
Earnings Whispers
Our proven model does not conclusively show that Deere will beat earnings estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #Array (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Negative Zacks ESP: The Earnings ESP for Deere is -Array.4Array% - the difference between the Most Accurate estimate of 70 cents and the Zacks Consensus Estimate of 7Array cents.
Zacks Rank #Array: Deere currently holds a Zacks Rank #Array, which when combined with a negative ESP makes surprise prediction difficult. We caution against stocks with Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies in the sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Brady Corp. BRC with an Earnings ESP of +4.35% and a Zacks Rank #3.
Global Brass and Copper Holdings, Inc. BRSS has earnings ESP of +Array3.04% and carries a Zacks Rank #3.
The Manitowoc Company, Inc. MTW has an earnings ESP of +ArrayArray.ArrayArray% and holds a Zacks Rank #2.
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 >>
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MANITOWOC INC (MTW): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
BRADY CORP CL A (BRC): Free Stock Analysis Report
GLOBAL B&C HLD (BRSS): 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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Demand for Deere's agricultural equipment continues to be affected by low farm income, lower commodity prices and tight credit conditions. On the positive side, the present business situation for lawn, garden, and municipal equipment remain strong. Deere & CompanyDE is expected to release first-quarter fiscal 20Array6 results before the opening bell on Feb Array9.
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Zacks Rank #Array: Deere currently holds a Zacks Rank #Array, which when combined with a negative ESP makes surprise prediction difficult. Click to get this free report MANITOWOC INC (MTW): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRADY CORP CL A (BRC): Free Stock Analysis Report GLOBAL B&C HLD (BRSS): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is expected to release first-quarter fiscal 20Array6 results before the opening bell on Feb Array9.
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Negative Zacks ESP: The Earnings ESP for Deere is -Array.4Array% - the difference between the Most Accurate estimate of 70 cents and the Zacks Consensus Estimate of 7Array cents. Zacks Rank #Array: Deere currently holds a Zacks Rank #Array, which when combined with a negative ESP makes surprise prediction difficult. Click to get this free report MANITOWOC INC (MTW): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRADY CORP CL A (BRC): Free Stock Analysis Report GLOBAL B&C HLD (BRSS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere & CompanyDE is expected to release first-quarter fiscal 20Array6 results before the opening bell on Feb Array9. Factors to Consider Deere expects total equipment sales to decline ArrayArray% year over year in the first quarter of fiscal 20Array6, including a negative currency translation effect of about 4%. Weak conditions in the energy sector and energy producing regions, especially in Canada, a decline in rental utilization rates and sluggish economic growth outside the U.S. are the persistent challenges for Deere.
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722690.0
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2016-02-18 00:00:00 UTC
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Pre-Market Earnings Report for February 19, 2016 : VFC, DE, PEG, AEE, COG, PNW, COMM, CST, TDS, USM, B, THRM
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-february-19-2016-vfc-de-peg-aee-cog-pnw-comm-cst-tds-usm-b-thrm
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The following companies are expected to report earnings prior to market open on 02/19/2016. Visit our Earnings Calendar for a full list of expected earnings releases.
V.F. Corporation ( VFC ) is reporting for the quarter ending December 31, 2015. The textile company's consensus earnings per share forecast from the 22 analysts that follow the stock is $1.02. This value represents a 4.08% increase compared to the same quarter last year. Zacks Investment Research reports that the 2015 Price to Earnings ratio for VFC is 19.43 vs. an industry ratio of 16.50, 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 January 31, 2016. The farm machinery company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.71. This value represents a 36.61% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 45.95%. The "days to cover" for this stock exceeds 12 days. Zacks Investment Research reports that the 2016 Price to Earnings ratio for DE is 19.03 vs. an industry ratio of 12.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Public Service Enterprise Group Incorporated ( PEG ) is reporting for the quarter ending December 31, 2015. The electric power utilities company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.48. This value represents a 2.04% decrease compared to the same quarter last year. In the past year PEG has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.27%. Zacks Investment Research reports that the 2015 Price to Earnings ratio for PEG is 14.49 vs. an industry ratio of 21.10.
Ameren Corporation ( AEE ) is reporting for the quarter ending December 31, 2015. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.18. This value represents a 5.26% decrease compared to the same quarter last year. AEE missed the consensus earnings per share in the 2nd calendar quarter of 2015 by -7.94%. Zacks Investment Research reports that the 2015 Price to Earnings ratio for AEE is 17.43 vs. an industry ratio of 21.10.
Cabot Oil & Gas Corporation ( COG ) is reporting for the quarter ending December 31, 2015. The oil (us exp & production) company's consensus earnings per share forecast from the 17 analysts that follow the stock is $-0.02. This value represents a 109.09% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2015 Price to Earnings ratio for COG is 186.27 vs. an industry ratio of 52.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Pinnacle West Capital Corporation ( PNW ) is reporting for the quarter ending December 31, 2015. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.27. This value represents a 440.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2015 Price to Earnings ratio for PNW is 17.63 vs. an industry ratio of 21.10.
CommScope Holding Company, Inc. ( COMM ) is reporting for the quarter ending December 31, 2015. The infrastructure company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.41. This value represents a 13.89% increase compared to the same quarter last year. In the past year COMM has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2015 Price to Earnings ratio for COMM is 13.05 vs. an industry ratio of -119.30, implying that they will have a higher earnings growth than their competitors in the same industry.
CST Brands, Inc. ( CST ) is reporting for the quarter ending December 31, 2015. The retail company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.56. This value represents a 45.10% decrease compared to the same quarter last year. CST missed the consensus earnings per share in the 2nd calendar quarter of 2015 by -11.11%. Zacks Investment Research reports that the 2015 Price to Earnings ratio for CST is 15.78 vs. an industry ratio of 21.80.
Telephone and Data Systems, Inc. ( TDS ) is reporting for the quarter ending December 31, 2015. The wire line (national) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.34. This value represents a 142.86% decrease compared to the same quarter last year. TDS missed the consensus earnings per share in the 1st calendar quarter of 2015 by -20%. Zacks Investment Research reports that the 2015 Price to Earnings ratio for TDS is 15.81 vs. an industry ratio of 30.40.
United States Cellular Corporation ( USM ) is reporting for the quarter ending December 31, 2015. The wireless (national) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.43. This value represents a 72.00% decrease compared to the same quarter last year. In the past year USM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 5800%. Zacks Investment Research reports that the 2015 Price to Earnings ratio for USM is 15.84 vs. an industry ratio of 14.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Barnes Group, Inc. ( B ) is reporting for the quarter ending December 31, 2015. The machinery company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.66. This value represents a 6.45% increase compared to the same quarter last year. B missed the consensus earnings per share in the 3rd calendar quarter of 2015 by -3.17%. Zacks Investment Research reports that the 2015 Price to Earnings ratio for B is 12.74 vs. an industry ratio of 15.50.
Gentherm Inc ( THRM ) is reporting for the quarter ending December 31, 2015. The auto (truck) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.56. This value represents a 1.82% increase compared to the same quarter last year. THRM missed the consensus earnings per share in the 2nd calendar quarter of 2015 by -1.85%. Zacks Investment Research reports that the 2015 Price to Earnings ratio for THRM is 17.77 vs. an industry ratio of 7.00, 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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Corporation ( VFC ) is reporting for the quarter ending December 31, 2015. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2016. This value represents a 36.61% decrease compared to the same quarter last year.
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Corporation ( VFC ) is reporting for the quarter ending December 31, 2015. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2016. This value represents a 36.61% decrease compared to the same quarter last year.
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Zacks Investment Research reports that the 2016 Price to Earnings ratio for DE is 19.03 vs. an industry ratio of 12.40, implying that they will have a higher earnings growth than their competitors in the same industry. Corporation ( VFC ) is reporting for the quarter ending December 31, 2015. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2016.
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In the past year DE has beat the expectations every quarter. Corporation ( VFC ) is reporting for the quarter ending December 31, 2015. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2016.
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722691.0
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2016-02-17 00:00:00 UTC
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Notable Wednesday Option Activity: IVC, DE, OPK
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DE
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-ivc-de-opk-2016-02-17
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Invacare Corp (Symbol: IVC), where a total of 2,100 contracts have traded so far, representing approximately 210,000 underlying shares. That amounts to about 116.6% of IVC's average daily trading volume over the past month of 180,060 shares. Especially high volume was seen for the $20 strike call option expiring August 19, 2016 , with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of IVC. Below is a chart showing IVC's trailing twelve month trading history, with the $20 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 36,206 contracts, representing approximately 3.6 million underlying shares or approximately 112.2% of DE's average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $75 strike put option expiring January 20, 2017 , with 5,728 contracts trading so far today, representing approximately 572,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $75 strike highlighted in orange:
And Opko Health Inc (Symbol: OPK) saw options trading volume of 38,472 contracts, representing approximately 3.8 million underlying shares or approximately 104.8% of OPK's average daily trading volume over the past month, of 3.7 million shares. Particularly high volume was seen for the $15 strike put option expiring June 17, 2016 , with 13,802 contracts trading so far today, representing approximately 1.4 million underlying shares of OPK. Below is a chart showing OPK's trailing twelve month trading history, with the $15 strike highlighted in orange:
For the various different available expirations for IVC options , DE options , or OPK 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 $20 strike call option expiring August 19, 2016 , with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of IVC. Especially high volume was seen for the $75 strike put option expiring January 20, 2017 , with 5,728 contracts trading so far today, representing approximately 572,800 underlying shares of DE. Particularly high volume was seen for the $15 strike put option expiring June 17, 2016 , with 13,802 contracts trading so far today, representing approximately 1.4 million underlying shares of OPK.
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Below is a chart showing IVC's trailing twelve month trading history, with the $20 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 36,206 contracts, representing approximately 3.6 million underlying shares or approximately 112.2% of DE's average daily trading volume over the past month, of 3.2 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $75 strike highlighted in orange: And Opko Health Inc (Symbol: OPK) saw options trading volume of 38,472 contracts, representing approximately 3.8 million underlying shares or approximately 104.8% of OPK's average daily trading volume over the past month, of 3.7 million shares. Particularly high volume was seen for the $15 strike put option expiring June 17, 2016 , with 13,802 contracts trading so far today, representing approximately 1.4 million underlying shares of OPK.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Invacare Corp (Symbol: IVC), where a total of 2,100 contracts have traded so far, representing approximately 210,000 underlying shares. Below is a chart showing IVC's trailing twelve month trading history, with the $20 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 36,206 contracts, representing approximately 3.6 million underlying shares or approximately 112.2% of DE's average daily trading volume over the past month, of 3.2 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $75 strike highlighted in orange: And Opko Health Inc (Symbol: OPK) saw options trading volume of 38,472 contracts, representing approximately 3.8 million underlying shares or approximately 104.8% of OPK's average daily trading volume over the past month, of 3.7 million shares.
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Especially high volume was seen for the $20 strike call option expiring August 19, 2016 , with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of IVC. Below is a chart showing IVC's trailing twelve month trading history, with the $20 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 36,206 contracts, representing approximately 3.6 million underlying shares or approximately 112.2% of DE's average daily trading volume over the past month, of 3.2 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $75 strike highlighted in orange: And Opko Health Inc (Symbol: OPK) saw options trading volume of 38,472 contracts, representing approximately 3.8 million underlying shares or approximately 104.8% of OPK's average daily trading volume over the past month, of 3.7 million shares.
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91cf2615-e77c-4672-8bc3-eb099a02f519
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722692.0
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2016-02-17 00:00:00 UTC
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Berkshire Hathaway Buys Kinder Morgan, Sells Chicago Bridge, Reduces AT&T
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DE
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https://www.nasdaq.com/articles/berkshire-hathaway-buys-kinder-morgan-sells-chicago-bridge-reduces-att-2016-02-17
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nan
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nan
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Warren Buffett ( Trades , Portfolio ) released the updated fourth-quarter portfolio for Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) Tuesday evening.
In the third quarter 2015, Buffett held on to most of what he had, buying no new stocks and only increasing some of his existing holdings. Since the start of the 2016, his company of choice has been oil refiner Phillips 66 ( PSX ), in which he increased his stake to 14.2%. He did not purchase its shares during the fourth quarter, however.
Berkshire Hathaway also has two portfolio managers, Ted Weschler and Todd Combs, who share similar investing philosophies but make independent investing decisions. They disclose their holdings in the same regulatory filing, meaning any of the three could have made the purchases and sells in the portfolio. Typically, the smaller positions belong to the two managers.
In the fourth quarter, Berkshire Hathaway bought Kinder Morgan ( KMI ), increased Deere & Co. ( DE ), exited Chicago Bridge & Iron Co. ( CBI ) and reduced AT&T ( T ).
The adjustments made the portfolio 67.7% consumer defensive stocks, 34.4% financial services, 9.3% technology and 4.7% energy at the top, with a total value of $131.9 billion at quarter-end.
Kinder Morgan Inc. ( KMI )
Berkshire Hathaway bought 26,533,525 shares of Kinder Morgan Inc., a 0.3% portfolio weight. The stock's price for the quarter averaged $24 per share.
Kinder Morgan Inc. is a midstream and energy company formed in Aug. 23, 2006. Kinder Morgan, Inc. has a market cap of $34.86 billion; its shares were traded at around $15.62 with a P/E ratio of 34.66 and P/S ratio of 1.87. The dividend yield of Kinder Morgan Inc. stocks is 10.27%.
Deere & Co. ( DE )
Berkshire increased its position in Deere & Co. by 34.2% to 22,884,150 shares, a 1.32% portfolio weight. The stock's share price averaged $77, and the position was started in the second quarter 2012.
Deere & Company was incorporated under the laws of Delaware in 1958. Deere & Co. has a market cap of $25.28 billion; its shares were traded at around $79.81 with a P/E ratio of 13.76 and P/S ratio of 0.93. The dividend yield of Deere & Co. stocks is 3.02%. Deere & Co. had an annual average earnings growth of 9.40% over the past 10 years. GuruFocus rated Deere & Co. the business predictability rank of 5-star .
Chicago Bridge & Iron Co. ( CBI )
Berkshire sold its remaining stake of 1,983,190 shares in Chicago Bridge & Iron Co., which they had reduced for the past two quarters. The share price averaged $41 for the quarter.
Chicago Bridge & Iron Co. was founded in 1889. It provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services to customers in the energy infrastructure market throughout the world, and is a provider of diversified government services. Chicago Bridge & Iron Co. has a market cap of $3.46 billion; its shares were traded at around $32.99 with and P/S ratio of 0.26. The dividend yield of Chicago Bridge & Iron
About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to 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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In the fourth quarter, Berkshire Hathaway bought Kinder Morgan ( KMI ), increased Deere & Co. ( DE ), exited Chicago Bridge & Iron Co. ( CBI ) and reduced AT&T ( T ). The adjustments made the portfolio 67.7% consumer defensive stocks, 34.4% financial services, 9.3% technology and 4.7% energy at the top, with a total value of $131.9 billion at quarter-end. The dividend yield of Chicago Bridge & Iron About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors.
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In the fourth quarter, Berkshire Hathaway bought Kinder Morgan ( KMI ), increased Deere & Co. ( DE ), exited Chicago Bridge & Iron Co. ( CBI ) and reduced AT&T ( T ). Kinder Morgan Inc. ( KMI ) Berkshire Hathaway bought 26,533,525 shares of Kinder Morgan Inc., a 0.3% portfolio weight. The dividend yield of Chicago Bridge & Iron About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors.
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In the fourth quarter, Berkshire Hathaway bought Kinder Morgan ( KMI ), increased Deere & Co. ( DE ), exited Chicago Bridge & Iron Co. ( CBI ) and reduced AT&T ( T ). The dividend yield of Chicago Bridge & Iron About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. Warren Buffett ( Trades , Portfolio ) released the updated fourth-quarter portfolio for Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) Tuesday evening.
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In the fourth quarter, Berkshire Hathaway bought Kinder Morgan ( KMI ), increased Deere & Co. ( DE ), exited Chicago Bridge & Iron Co. ( CBI ) and reduced AT&T ( T ). Deere & Co. ( DE ) Berkshire increased its position in Deere & Co. by 34.2% to 22,884,150 shares, a 1.32% portfolio weight. The dividend yield of Chicago Bridge & Iron About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors.
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52e20b4e-9278-4872-9b14-7dd48c32d71f
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722693.0
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2016-02-16 00:00:00 UTC
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What Berkshire Hathaway is Buying and Selling
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DE
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https://www.nasdaq.com/articles/what-berkshire-hathaway-buying-and-selling-2016-02-16
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nan
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nan
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Berkshire Hathaway just filed its 13F. The filing reveals that Berkshire added to five companies it already owned, reduced the size of two positions, and completely sold out of another company. The table below summarizes the change in its portfolio during the fourth quarter of 2015.
Source: WhaleWisdom.com
Interestingly, only one of the positions changes this quarter appears to have been at Buffett's behest: the Wells Fargo stake that Berkshire Hathaway has owned for decades. Buffett apparently took advantage of a fourth-quarter decline in banking stocks to add to his Wells Fargo holdings.
Buffett has to be selective about when to add to the Wells Fargo stake. As a bank holding company, Berkshire cannot buy more than 10% of the firm. Once it reaches that limit, Berkshire's ownership of the bank can only grow by share count reductions at the San Francisco-based bank. (Berkshire's stake in American Express is similarly restricted, as the card company converted into a bank holding company during the financial crisis.)
The remaining position changes appear to be the work of Ted Weschler and Todd Combs, who each manage multi-billion dollar portfolios inside the Omaha-based conglomerate.
A hidden addition
In recent weeks, Berkshire Hathaway has been a serial filer of SEC form 4 filings, which detail recent purchases of Phillips 66 . As of the most recent form 4, Berkshire held about 75.55 million shares of the company, a substantial increase from the 61.49 million shares it reportedly owned at the end of December.
Many wondered if Berkshire's form 4 filings were indicative of the company's interest in the oil patch. Now that we know the company added Kinder Morgan into the portfolio in the fourth quarter, it appears that one of Berkshire's younger portfolio managers is capitalizing on depressed energy valuations by selectively adding them to his portfolio.
Besides that one addition, however, it was a relatively light quarter of trading for Berkshire, which prefers to buy and hold rather than actively trade in and out of its portfolio companies anyway.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article What Berkshire Hathaway is Buying and Selling originally appeared on Fool.com.
Jordan Wathen has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway, Kinder Morgan, and Wells Fargo. The Motley Fool is short Deere & Company and has the following options: short March 2016 $52 puts on Wells Fargo. The Motley Fool recommends American Express. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Source: WhaleWisdom.com Interestingly, only one of the positions changes this quarter appears to have been at Buffett's behest: the Wells Fargo stake that Berkshire Hathaway has owned for decades. The remaining position changes appear to be the work of Ted Weschler and Todd Combs, who each manage multi-billion dollar portfolios inside the Omaha-based conglomerate. The Motley Fool owns shares of and recommends Berkshire Hathaway, Kinder Morgan, and Wells Fargo.
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Now that we know the company added Kinder Morgan into the portfolio in the fourth quarter, it appears that one of Berkshire's younger portfolio managers is capitalizing on depressed energy valuations by selectively adding them to his portfolio. The Motley Fool owns shares of and recommends Berkshire Hathaway, Kinder Morgan, and Wells Fargo. The filing reveals that Berkshire added to five companies it already owned, reduced the size of two positions, and completely sold out of another company.
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Now that we know the company added Kinder Morgan into the portfolio in the fourth quarter, it appears that one of Berkshire's younger portfolio managers is capitalizing on depressed energy valuations by selectively adding them to his portfolio. The Motley Fool owns shares of and recommends Berkshire Hathaway, Kinder Morgan, and Wells Fargo. The filing reveals that Berkshire added to five companies it already owned, reduced the size of two positions, and completely sold out of another company.
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Now that we know the company added Kinder Morgan into the portfolio in the fourth quarter, it appears that one of Berkshire's younger portfolio managers is capitalizing on depressed energy valuations by selectively adding them to his portfolio. The Motley Fool owns shares of and recommends Berkshire Hathaway, Kinder Morgan, and Wells Fargo. The filing reveals that Berkshire added to five companies it already owned, reduced the size of two positions, and completely sold out of another company.
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19835d80-5db5-4ebf-a1fe-4deaa9b75618
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722694.0
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2016-02-12 00:00:00 UTC
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Is This the Perfect Time to Buy Deere?
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DE
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https://www.nasdaq.com/articles/perfect-time-buy-deere-2016-02-12
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nan
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nan
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Between 2015 and 2050, the world's population is forecast to rise from 7.3 billion to 9.7 billion. That means there will be 2.4 billion extra mouths to feed within the next 35 years. Therefore, the supply of food will have to increase significantly to produce sufficient food for a population that's expected to be a third higher than it is today. And that, in turn, is a key reason buying Deere & Company right now could be a profitable long-term move, since its main focus is on providing the equipment and machinery to bolster world food supplies.
Moreover, with 70% of the world's population forecast to be living in cities by 2050, up from 50% today, it seems likely that improved technology will be required to supply sufficient food. In other words, less-labor-intensive methods are likely to be sought, and one such space in which Deere has the potential to grow its offering is in the autonomous-vehicle space.
Deere has invested heavily in autonomous vehicles in recent years and has become the biggest seller of such vehicles in the world. This standing should provide the company with a competitive advantage and could be a potential catalyst for higher sales and earnings growth moving forward. It could also allow it to remain relevant in an increasingly technologically advanced global economy.
Clearly, Deere is hurting from reduced demand for its products as a result of falling commodity prices. And with the company's products being built to last, many farmers and agriculture operations are buying secondhand or keeping existing equipment in use longer than they otherwise would. Although this situation may continue in the short run, all commodity markets operate in cycles, and Deere appears to be responding prudently to the short-term challenges it faces.
For example, Deere is aiming to increase sales outside the U.S., with the company seeking to generate over half of its sales from outside North America by 2018. For comparison, in 2010, only around one-third of its sales were international. And with a stronger dollar likely to be a feature of the medium term as monetary policy diverges around the globe, exporters such as Deere could stand to benefit.
This increase in exports is also set to help double Deere's sales between 2010 and 2018, which, given the challenging outlook for commodity prices and the agricultural space, would be a strong result. Furthermore, Deere is intent on delivering a mid-cycle operating margin of 12% by 2018 as it seeks to more accurately align management compensation with the profitability of the business. And with asset turnover expected to improve to 2.5 times by 2018, Deere's efficiency as a business is on the upswing.
However, Deere's guidance for 2016 is highly disappointing. For example, it expects U.S. and Canadian demand for agricultural equipment to fall by between 15% and 20%, with declines across its other geographic segments, too. In addition, Deere's construction industry equipment sales are expected to fall by 5%, resulting in a forecast fall in equipment sales of 7% on a group basis. This situation is due to cause a fall in EPS of 27%, which could cause Deere's share price to come under pressure in the coming months.
Undoubtedly, Deere's sales are being hurt in the short run because of the aforementioned ebb in commodity prices. However, for long-term value investors, such times in a cycle can be a sound time to invest -- particularly since Deere has the right strategy not only to slash costs and become more efficient, but also to benefit from a tailwind provided by higher long-term demand for its products.
With its shares trading on a price-to-free cash flow ratio of 7.6 and yielding 3.3% from a dividend that's increased by 114% since 2010, now seems to be the perfect time to buy John Deere for the long term.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article Is This the Perfect Time to Buy Deere? originally appeared on Fool.com.
Robert Stephens has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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And that, in turn, is a key reason buying Deere & Company right now could be a profitable long-term move, since its main focus is on providing the equipment and machinery to bolster world food supplies. Although this situation may continue in the short run, all commodity markets operate in cycles, and Deere appears to be responding prudently to the short-term challenges it faces. With its shares trading on a price-to-free cash flow ratio of 7.6 and yielding 3.3% from a dividend that's increased by 114% since 2010, now seems to be the perfect time to buy John Deere for the long term.
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Clearly, Deere is hurting from reduced demand for its products as a result of falling commodity prices. Although this situation may continue in the short run, all commodity markets operate in cycles, and Deere appears to be responding prudently to the short-term challenges it faces. In addition, Deere's construction industry equipment sales are expected to fall by 5%, resulting in a forecast fall in equipment sales of 7% on a group basis.
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And that, in turn, is a key reason buying Deere & Company right now could be a profitable long-term move, since its main focus is on providing the equipment and machinery to bolster world food supplies. This increase in exports is also set to help double Deere's sales between 2010 and 2018, which, given the challenging outlook for commodity prices and the agricultural space, would be a strong result. In addition, Deere's construction industry equipment sales are expected to fall by 5%, resulting in a forecast fall in equipment sales of 7% on a group basis.
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And that, in turn, is a key reason buying Deere & Company right now could be a profitable long-term move, since its main focus is on providing the equipment and machinery to bolster world food supplies. This increase in exports is also set to help double Deere's sales between 2010 and 2018, which, given the challenging outlook for commodity prices and the agricultural space, would be a strong result. In addition, Deere's construction industry equipment sales are expected to fall by 5%, resulting in a forecast fall in equipment sales of 7% on a group basis.
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73aa1ac2-b409-4fc7-af0f-2a7400a93394
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722695.0
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2016-02-10 00:00:00 UTC
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Is 40% of Deere & Company's Earnings Under Pressure?
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DE
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https://www.nasdaq.com/articles/40-deere-companys-earnings-under-pressure-2016-02-10
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nan
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nan
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is a great business with good long-term prospects, but it's facing a significant amount of risk in its near-term prospects. Given that its upside potential is reliant on crop prices rising, it makes more sense to buy an ETF in a crop like corn or wheat than carry the near-term risk in Deere stock. Here's why.
Introducing Deere's financial services segment
Deere makes tractors and combine harvesters, but did you know that more than 40% of its operating profit in the fourth quarter came from its financial services? It's clearly not a one-off thing, either, because Deere's management is forecasting that $550 million of its projected $1.4 billion in net income in 2016 will come from its financial services.
Moreover, the high share of income from financial services isn't just about equipment sales falling. The previous trough in overall earnings occurred in 2009 (when equipment sales were also falling), and as you can see below, the share of Deere's operating profit from financial services was much lower back then.
Simply put, Deere has become increasingly reliant on its financial services segment, and specifically on leasing out equipment. To be clear, Deere's management is on record stating that its financial company "has not been encouraging customers to utilize leases in general, or short-term leases specifically, through pricing or residual values." Rather, it's an option that has become more attractive to customers.
There are three major risks in this:
Rising interest rates and/or Deere's ability to obtain financing
Quality of financing receivables could decline, leading to an increase in credit loss provisions
A huge increase in leasing activity could lead to a glut of used equipment on the market
Leasing options could be artificially stimulating a market that could correct sharply
I will let the first point lie, because if you can accurately predict interest rate movements, then there is no need to waste time on equities! Nonetheless, it's an exposure that Deere has, given the reliance on its financial services.
Financing receivables
As you can see below, Deere has done a pretty good job of managing nonperforming loans, and its allowance for credit losses actually fell to $157 million at the end of 2015 compared to $175 million at the end of 2014 -- although foreign currency movements helped improve matters by $23 million.
ALL DATA IN MILLIONS OF U.S. DOLLARS.
However, the pressure is building. Adding its nonperforming receivables to the total of its past-due receivables (generally whereby payments have not been made after 30 days or more) it's clear that there is a strong increase. If conditions in its end markets don't improve, then Deere may have to increase credit loss provisions.
IN MILLIONS OF U.S. DOLLARS. PAST DUE = AFTER 30 DAYS OR MORE.
Deere has been significantly increasing leasing activity. As noted above, Deere may not necessarily be encouraging it, but it's happening all the same, and Deere has been supporting it. A combination of low interest rates, declining farmer income, and an uncertain economic environment have come together to create conditions for its growth.
The chart below shows that the growth in equipment on operating leases has significantly increased in recent years -- note that it wasn't a significant factor back in the last trough in 2009.
IN MILLIONS OF U.S. DOLLARS.
Used-equipment prices
In truth, Deere is moving into uncharted territory, and it's hard to know how used-equipment prices will be affected when some of the equipment comes on the market, let alone how new-equipment prices might be affected. Consequently, this isn't just a Deere issue; investors in other agricultural machinery companies like and could also be affected.
So far, pricing in the industry has held up well, with AGCO and CNH recently releasing results warmly received by the market; Deere also has an assumption of a 2% price increase baked into its first-quarter and full-year guidance. The question is: How long will it last?
Two bottom lines, and a caveat
All told, Deere's financial services segment has a lot of near-term risk facing it, but investors shouldn't lose sight of the fact that if crop prices increase -- perhaps due to unfavorable growing conditions caused by, say, a La Nina following on from this year's strong El Nino -- then nearly all Deere's metrics are likely to turn around positively.
Still, that doesn't build a case for buying the stock. The company is still a great long-term business, but if you are buying in the expectation of a pickup in crop prices, then simply investing in a corn or wheat ETF like Teucrium Corn Fund or Teucrium Wheat Fund makes more sense than carrying the near-term risk in Deere's financial services segment.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article Is 40% of Deere & Company's Earnings Under Pressure? originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool is short Deere & Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The previous trough in overall earnings occurred in 2009 (when equipment sales were also falling), and as you can see below, the share of Deere's operating profit from financial services was much lower back then. There are three major risks in this: Rising interest rates and/or Deere's ability to obtain financing Quality of financing receivables could decline, leading to an increase in credit loss provisions A huge increase in leasing activity could lead to a glut of used equipment on the market Leasing options could be artificially stimulating a market that could correct sharply I will let the first point lie, because if you can accurately predict interest rate movements, then there is no need to waste time on equities! A combination of low interest rates, declining farmer income, and an uncertain economic environment have come together to create conditions for its growth.
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Given that its upside potential is reliant on crop prices rising, it makes more sense to buy an ETF in a crop like corn or wheat than carry the near-term risk in Deere stock. There are three major risks in this: Rising interest rates and/or Deere's ability to obtain financing Quality of financing receivables could decline, leading to an increase in credit loss provisions A huge increase in leasing activity could lead to a glut of used equipment on the market Leasing options could be artificially stimulating a market that could correct sharply I will let the first point lie, because if you can accurately predict interest rate movements, then there is no need to waste time on equities! The company is still a great long-term business, but if you are buying in the expectation of a pickup in crop prices, then simply investing in a corn or wheat ETF like Teucrium Corn Fund or Teucrium Wheat Fund makes more sense than carrying the near-term risk in Deere's financial services segment.
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There are three major risks in this: Rising interest rates and/or Deere's ability to obtain financing Quality of financing receivables could decline, leading to an increase in credit loss provisions A huge increase in leasing activity could lead to a glut of used equipment on the market Leasing options could be artificially stimulating a market that could correct sharply I will let the first point lie, because if you can accurately predict interest rate movements, then there is no need to waste time on equities! Two bottom lines, and a caveat All told, Deere's financial services segment has a lot of near-term risk facing it, but investors shouldn't lose sight of the fact that if crop prices increase -- perhaps due to unfavorable growing conditions caused by, say, a La Nina following on from this year's strong El Nino -- then nearly all Deere's metrics are likely to turn around positively. The company is still a great long-term business, but if you are buying in the expectation of a pickup in crop prices, then simply investing in a corn or wheat ETF like Teucrium Corn Fund or Teucrium Wheat Fund makes more sense than carrying the near-term risk in Deere's financial services segment.
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Simply put, Deere has become increasingly reliant on its financial services segment, and specifically on leasing out equipment. The Motley Fool is short Deere & Company. Given that its upside potential is reliant on crop prices rising, it makes more sense to buy an ETF in a crop like corn or wheat than carry the near-term risk in Deere stock.
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00edae33-1413-4e37-bc5f-9c46219397cc
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722696.0
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2016-02-10 00:00:00 UTC
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Captivating Finance
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DE
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https://www.nasdaq.com/articles/captivating-finance-2016-02-10
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nan
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nan
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If you've ever bought a car, especially a new one, you're familiar with captive finance -- financing available from the company you're buying from.
On this week's Industry Focus: Financials , Gaby Lapera and special guest Tyler Crowe lay down the basics of how and why companies have captive finance. Also, what a SIFI designation means and why it's not the most sought-after title, and one thing to check out before going in to buy a new car.
A full transcript follows the video.
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This podcast was recorded on Feb. 8, 2016.
Gaby Lapera: Captive finance, the second most interesting topic after the Super Bowl.
Hello, everyone! Welcome to Industry Focus, Financials . I'm Gaby Lapera here in the studio with Tyler Crowe! I'm so excited to have...
Tyler Crowe: Little bit of a change-up for this week.
Lapera: I know. Not that I don't miss you, Maxfield, don't get me wrong, but I'm so excited to actually have a person with me in the studio. Tyler Crowe, if you don't know, just in case you don't listen to our energy podcast, is one of The Motley Fool's best energy and industrials analysts.
Crowe: She's overstating things very, very much. But I'll take it anyways.
Lapera: (laughs) Well, thank you for joining us. And I wasn't kidding, we're actually going to talk a little about the Super Bowl today. There's this guy Robert Stovall. He's an analyst on Wall Street, and he came up with this thing called the Super Bowl Predictor. I'm going to let Tyler talk about it, because I made six mistakes when I was attempting to describe this to him. He was like, "Those teams don't exist anymore. I don't know what you're talking about." So, I'll hand it off to you.
Crowe: So, there is a weird predictor of the Super Bowl that basically says if a team from the NFC wins, we're going to have an up Wall Street year -- the market's going to end up. And when an AFC team wins, we're going to have a down market. Last year, as we know, Patriots won, and the market was down 2.2%. The crazy thing about it is, over the last 49 Super Bowls, 40 of them have been right. That's better than most Wall Street analysts, which is, you know, pretty impressive. So, now that the Denver Broncos have won, there is, some are saying, predicting, that we're going to have a down market again. And so far, this year, we haven't exactly gotten off to a great start.
Lapera: Gosh darn it, one of the Manning brothers.
Crowe: So, we'll see how it goes.
Lapera: Peyton?
Crowe: She's trying really hard to talk about football right now, and it's not going great for her. But we're going to make it work anyways.
Lapera: Anyways! Now that the super-interesting, accessible part of our show is over, now we're going to talk about captive finance, something that you never thought you wanted to know about, but now you are going to, if you listen to the rest of this podcast.
Captive finance, you've probably encountered this before and haven't realized it. It's basically when you get financing to buy something from the company that you're buying the product from. You mostly see this with car dealerships. So, if you've ever bought a car, say, from Ford , you have the option of going to your bank and getting a loan or Ford will provide you financing to buy their vehicle. Most of the time, companies do this to remove a friction point.
So, you've got a car, you're in the dealership, and you're like, "Oh wait, I have to go call my bank to see if I can get a loan." And the sales agents are like, "No, no, but we can provide financing for you instead!" That works out great, for them anyways. You're much more likely to buy then. So, the other things you can do instead of captive finance and going to a loan is you can go to a random finance company. So, that's a finance company that is not a bank, a non-banking finance company is the official designation for these things, and it's literally anything from a pawn shop to Lending Club or...
Crowe: What, you've never bought a car from the pawn shop?
Lapera: You could buy a car from a pawn shop.
Crowe: You haven't lived until you've bought a car from a pawn shop.
Lapera: It's basically anything that can't take deposits, but can give loans. That's what a finance company is. And then, your other option, of course, is "Buy here, pay here." Tyler, do you want to do your impression of these commercials?
Crowe: So, basically, you've probably heard them on the radio. It's "When you come on down to Randy's Auto Emporium, bad credit, no credit, no problem!" If you've ever heard that statement, that is a "Buy here, pay here" kind of establishment.
Lapera: Right, that is the dealer giving you financing directly through that dealership, not through corporate or anything. Captive finance is through corporate, and the captive finance company is the company that is wholly owned by a parent company. And it can be for anything, but we're obviously going to be talking about captive finance companies, because this is the financials edition. Shocking!
I think the best-known industrial examples, like I said, are probably auto makers. The biggest captive financiers are Ford and Toyota . They, I think, originated the most loans for new cars out of anything. This is including banks like Wells Fargo and stuff. They originate the most loans for new cars, which is crazy.
Crowe: Yeah, and one of the interesting things about it, and if we look back a couple years ago, thinking like, pre-recession times, these things were massive, massive financing arms. If you look at somebody like General Motors , when they had GMAC, just before they spun it off into Ally . Is it Ally Bank or Ally Financial? I'm not as good with financial names on things like that. But I digress. Either way, if you actually look at the pre-recession numbers for General Motors' financial arm, the revenue from it was greater than the actual cars themselves, because it had become such a large component of the business. When you're talking about these financial arms, they can be a considerable, considerable component of these businesses.
Lapera: Definitely. And, of course, you're probably asking yourself, "What about the used-car market? That probably doesn't go through dealerships in the same way." And you're right, but these captive arms for these dealers, they're making mostly loans for new cars. So, the amounts that they're lending out are higher. And, they also tend to be lending to people -- people who are buying new cars tend to have higher credit scores than the people who are buying used cars. I think the average in 2015 for someone buying a new car, their credit score was 710, which is technically prime.
Crowe: Technically.
Lapera: (laughs) Technically prime. And the average for someone who is buying a used car is only 650.
Crowe: And if we look at the trends, you can actually see that that's starting to trend back down again, which isn't exactly the most encouraging sign, if you look at the numbers from 2010 on the way down. If anyone is at all interested in the captive finance market of industrial companies, especially in the automotive sector, great market research is the Experian Automotive Finance Market. They give all the credit statistics when it comes to stuff like this. And the average credit score in 2010 for a new car financing was 733. By 2015, it's dropped down to 710. So, not exactly the most encouraging sign, as we come out of a recession. But hey, sometimes you get a little more ambitious as the times get good.
Lapera: Right. And obviously the problem with this, for our less experienced listeners, is that people with lower credit scores are more likely to default. That's what the credit score is telling people. So, when those credit scores go down, it's concerning for people who are actually holding the loans, which, in this case, would be the actual corporations.
Crowe: Yeah, when you're looking at the financial arm, if you're looking at a business in this sort of realm, the captive finance aspect of a business, obviously the risk of default is probably the first thing you think about. If we look at what happened with GE Capital, with the issues they had at GM with Ally Bank, the first thing that everybody points to is the risk of default, what are the chances of it actually defaulting on their loans and causing issues?
But, if you're looking at it from a business, there's other things that certainly, if you're looking to invest in one of these companies, like a GM, Toyota, or even some of the industrial ones, like, say, a John Deere , GE , you have to look at some of the other components. And I think one of those things you actually have to think about is artificial inventory build. It sounds really weird. We're talking about some fascinating stuff here today.
Lapera: (laughs)
Crowe: But...
Lapera: I'm sorry that we're not as exciting as commodities markets, Tyler (laughs).
Crowe: It can be! Because, you know, we're tying in commodities on this one. So, let's use a great example, John Deere, right now. Since 2012, sales at Deere have been slumping. Actual sales, straight-up sales of something where they take the cash, wipe their hands, and say, "Go have fun with your new equipment."
Lapera: Can I ask you something really quick?
Crowe: Sure.
Lapera: Do they make anything other than tractors?
Crowe: Oh, yeah.
Lapera: Is tractors their thing?
Crowe: Any agricultural equipment aside from tractors, you're also getting into some of the heavy construction equipment, excavators, things like that. So, there's a pretty large component of John Deere that is agriculture, but they do have some construction stuff. And that's actually why things have been getting kind of funky. Agricultural sales have been slumping for the last few years, and then you throw on the commodities bust we've had over the past while for iron ore and a lot of other commodities, it's been five years; and you throw in energy over the past 18 months, and nobody is liking what's going on.
So, with somebody like Deere, while their sales have gone down, their operational leases, where they actually lease out their equipment through their financing arm to farmers or whoever, that has grown a very large amount. But what that leads to is, once the lease expired, John Deere is left with a whole bunch of used equipment. Then, they have to sell it, because there's no point in having an inventory of used equipment. Once you get that inventory build, you have to drop prices, and then your margins start to go down. So, it's that interesting play on, how does the financing arm of the business really play into how that actually works for them?
Lapera: Yeah, and that's really interesting, because I also remember seeing that the number of car leases as well has been going up over the last few years as well. Which is actually a question we get in personal finance all the time, which is, "Should I buy or lease my car?" We're not going to get into that, but that question you ask yourselves is also something that the corporation is asking itself.
Crowe: Yeah, at least with somebody on a lease end, they want to sell you the car, because when it's done, they want to wipe their hands of it. They don't want to have a used car in inventory, because it's a drag on margins. But so when times like this happen, you do have to have that financing arm to, like you were saying earlier, grease the skids, remove that friction point from the sale.
I do remember, because you were talking about the financing arm of it, I was in a dealership three or four years ago, when I bought my car. That was the first thing that came to mind, how before you go, it's always the "Check in with banks, check what you can get," and then you get there and they're like, "Oh, we have the financing right here and ready and waiting for you, in 30 seconds we're going to check your credit and tell you what you can get." And it keeps you in the door and it makes the signing on the bottom line a heck of a lot faster. And when you're trying to make a large purchase like that, it helps a lot when it comes to making the sale at the end of the day.
Lapera: Yeah. It incentivizes them. It's all staying in-house, which they like. I bought a new car a couple years ago, too. I did the same thing, I did in-house financing. I love my car. It snowed a lot here, and my car has four-wheel drive, and I've never had a car with four-wheel drive before, and I still drive really carefully because I'm terrified of the snow because technically I grew up in the South ... (laughs) Tyler's laughing, because he grew up in New England, and he's, like, "Ugh, snow, what's that?"
Crowe: What's that? We can figure that out pretty quickly. So, I do want to ask you, thinking of the risk of default, I'm more on the industrial side, so I don't understand that as much. If you could maybe give some details, at least for me, say, only industrials person and I don't know anything about the risk of default, what are maybe some of the things that I should be watching for in a captive finance business that has that? If I'm looking through an income statement or balance sheet?
Lapera: So, what you're going to want to look for is net charge-offs. Those are basically saying how much the company has had to charge off on loans that are delinquent, that just aren't going to be fulfilled. If you see a trend of those rising bad news bears. (laughs) And typically, if companies really know what they're doing, it's not going to get much above 1%. Most have it below that. During the financial crisis, it went nuts. It got up to 4%. I mean, you remember the financial crisis. It was bad times. (laughs)
Crowe: It was not a good time.
Lapera: So, really, you're looking at that, and once it starts getting past that 1% mark, you're, like, "I don't know... " The other thing that you want to look for is the loan reserves. Companies budget a certain amount of their profits, saying, like, "We know that some people are going to default on their loans. That's just a fact of life." And some companies have more or less of a buffer in order to pay off those loans. Ideally, you'd want a company with a conservative buffer. This is actually something we've seen with banks with a lot of oil exposure, a lot of them are raising their reserves in response to this, because a lot of the people they've given loans to are going to default, especially if you're a small...
Crowe: And, trust me, there are a lot of people that are going on default right about now.
Lapera: Yeah. (laughs)
Crowe: You can see why it's happening.
Lapera: Yeah. So, those are really the two things you're going to want to look for in terms of worrying about defaults. And companies are required to give you this data. It's going to be in their 10-Q. One of the things that was actually really interesting in that Experian auto loan finance market thing we looked at was, it showed us a map of the U.S. and how likely a state was to default on its auto loans. And it was, like, the entire South was red, and the Northwest Pacific was green, which meant it was good, really low, below 0.5% or something.
Crowe: It certainly has changed over time. I think we went back and looked at the past five years, and 2010, 2009, it wasn't looking is great. But things are looking a little bit better as of late. Almost across the world.
Lapera: The entire country, I think, in 2010 was like...
Crowe: Defaulting at a pretty high rate.
Lapera: Yeah, it was various shades of red. It wasn't good (laughs). So, yeah. The other thing that we want to talk about is, lots of companies have captive finance arms. It's not just cars. One of the most well-known ones would be GE, which is General Electric, in case you don't know (laughs). Obviously, they sell a lot of stuff, in terms of consumer goods, like washing machines and stuff like that. Although, they have recently sold off their appliances.
Crowe: Yeah, so, aside from light bulbs, I think, might be their last real consumer-facing product that they've been doing as of late. But you can almost name anything on the industrial side of things, and GE probably has their fingers in it somewhere.
Lapera: Yeah. Airplanes, healthcare...
Crowe: Oil and gas.
Lapera: All sorts of things.
Crowe: All across the board.
Lapera: Anyways, back in 2013, GE got designated as a SIFI, which is a systematically important financial institution, which I think Tyler says as sci-fi, which I like.
Crowe: Well, I'm not a finance person, so I just assumed it was sci-fi.
Lapera: I actually don't know which one is right. I've never heard anyone else say it besides me and Maxfield.
Crowe: OK.
Lapera: So maybe you're right and I've just been saying it wrong.
Crowe: We'll find out.
Lapera: I'm sure someone will write in and tell us which one of us is right (laughs).
So, GE was labelled as a SIFI in 2013. And that's a huge hassle. If you're not a bank... and it's already a huge hassle for banks... it's a huge hassle, because it comes with a lot of expensive regulatory requirements. You're required to have all of these capital bases, and you have to do all these stress tests, which aren't cheap to do. And it means that a lot of your capital is tied up in just-in-case financing. Just in case you go belly up, you can't, because you have all this capital saved up so you can't. Which means, for a company that's trying to innovate or do other things, that isn't a bank, it's a problem, because banks have to have that money. They have deposits and stuff anyway. It's not a big deal for them. It's part of their business model. But for GE, it doesn't really make a ton of sense.
Crowe: Well, if you look at the history of GE, GE Capital, more specifically, you can almost see why this happened. Let's start pre-financial crisis. GE Capital had just become a massive, massive component of the entire business. If you look at 2007, their total net income, their financial or capital markets aspect of the business was anywhere between 40% to 50% of their entire business. And this is somebody who makes almost everything.
So, when you had that, and even CEO Jeff Immelt has said this over time is, they got caught up in the numbers of profit on the capital end and didn't really focus on who they were as an industrial manufacturer. And I mean, if you look at some of the things that were on the GE Capital balance sheet at the time, they were doing private-label credit cards for Amazon.com , Walmart , Gap , companies like that.
And just, taking on a lot more of a role of a bank or financing company, just for the simple fact that the returns where there, rather than maybe using their captive finance aspect of their business purely for their industrial operations or whatever they're selling for. So, when the collapse happened, they had to get a $3 billion preferred share TARP-esque buyout from Warren Buffett, who gave them a little bit of approval there, it made them look in the mirror and say, "Oh, wow, we really should get out of this capital business and focus on what we do well as an industrial manufacturer." So, we've seen the results of that, where they've spun off Synchrony Financial , they've sold, what is it, $30 billion worth of assets to Wells Fargo? You're a little better with the numbers.
Lapera: Yes, $30 billion worth of commercial lending leasing to Wells Fargo.
Crowe: So, on top of that, and I believe it somewhere in the $150-160 billion range, in terms of assets they've been selling or deleveraging from GE Capital.
Lapera: Right. So, about $115 billion asset management business. They're in talks with State Street , which is already a SIFI, to sell it to them. And that is relevant as of, I believe, Friday or Thursday of last week, which would have been Feb. 4, just in case you're listening to this in July of 2017. (laughs) So, it's a great deal for State Street. But it does make a lot of sense for GE. They're getting rid of a very expensive part of their business for them. If you look at a little chart that says what made GE the most money in 2001, it was hands-down GE Capital. Now, it's somewhere like 5th on the list, it's not making them nearly as much money as it used to.
Crowe: And for good reason. On top of the SIFI, however we want to call it, designation, what it also does for somebody like an industrial manufacturer like GE, it limits some of the shareholder things you can do, or shareholder return things like buybacks, dividend raises, things like that, that, as you're an investor in the industrial space, those are the things you're probably going to be looking for a little bit more aggressively than, say, in the financial realm. So, with that designation, they're being held back from a lot of things.
Lapera: The reason for that is because, like I said, there's capital requirements for these companies. They have to pass these tests, and the federal government will basically tell them whether or not they're allowed to give out dividends. And the federal government had said no to them in the past.
Crowe: So far, federal government has said no to GE in that realm for the most part. The interesting thing now is, since it's sold of such a large component of its GE Capital, it's to the point where it maybe shouldn't necessarily be considered a systematically important financial institution anymore.
Lapera: And they did this on purpose. They straight up said first quarter.
Crowe: "We want to get rid of this."
Lapera: "First quarter of 2016, we are going to apply to lose our SIFI designation. We don't want it, we're going to do as best we can to sell off everything we have."
Crowe: Yeah, and as a part of that, they basically told shareholders what they get out of it. They're going to get $35 billion in stock buybacks, another $35 billion, potentially, in dividends. So, they're really trying to throw some large numbers out there to the shareholders, and give them to the incentive, "Hey, we need to get rid of this, this is why." And hopefully the federal government will drop that systematically important designation soon enough, because for GE to really unleash their capital, all that reserves built up, not just in terms of returning to shareholders but even toward reinvestment in the actual business itself, it really needs to happen. So, hopefully, this will be a lesson to GE and many others that, you know, it's nice to have a financing arm, but it shouldn't be the biggest component of your business if you're a manufacturer.
Lapera: Right. Soon, we won't be able to talk about them on Industry Focus: Financials at all.
Crowe: Well, let's hope not. That's at least my opinion. I know everybody has their own investing opinions and things like that, but I like to think of a captive financing arm of an industrial manufacturer or any big thing like that, it should never be talked about, at least in my opinion. If I'm listening to a quarterlyearnings callor looking at some of the financial statements, it should almost feel like an after-statement. It's something there to smooth the skids when we're trying to make some sales happen, maybe it'll generate a modest return on it...
Lapera: You definitely don't want to see a loss on it.
Crowe: Well, granted. But, I don't want to see that the dominant component of the business in any way, because it really, as we've seen over these past six, seven, eight years of that transformation of GM, GE, people like that, that when it becomes such a large component of the business, it distracts from what a company does well. GE, by most rights, probably didn't need to be into the private credit card business, they just got enamored with it. And now that it's not there, hopefully they can focus on what they do best.
Lapera: Right. And that, just in case you're curious, that private-label credit card business got spun off with Synchrony back in October of 2015...
Crowe: 2014.
Lapera: Oh, 2014. So, it's been gone for a while.
Crowe: All for the better.
Lapera: All for the better. Just in case you're wondering, by the way, why Tyler Crowe is on the show with me today (laughs), this week, we've come up with a number...
Crowe: Industry Mashup.
Lapera: Industry Mashup. The Venn diagram week. I don't know. One of us is going to appear on someone else's show all week. So, tomorrow, I'll be on Consumer Goods. Get excited. I have no idea what we're talking about yet (laughs).
Crowe: Actually, Taylor Muckerman was supposed to be in here. He's the other Industrials analyst with us. Unfortunately, he's a very large Carolina Panthers fan.
Lapera: (laughs) No!
Crowe: And he is nowhere to be seen. So, hopefully, we can find him someday.
Lapera: Aw. If you're out there, Taylor, feel better! (laughs) So, yeah, thank you guys so much for joining us on Industry Focus . As always, people on this program may have interests in the stocks they talk about, and The Motley Fool may have formal recommendations for or against those stocks, so don't buy or sell anything based solely on what you hear. Thanks for joining us, hope you have a great week, and don't forget to email us about your opinions on how SIFI is pronounced. Email is IndustryFocus@Fool.com . Thanks very much!
The article Captivating Finance originally appeared on Fool.com.
Gaby Laperahas no position in any stocks mentioned.Tyler Crowehas no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company. The Motley Fool owns shares of and recommends Amazon.com, Ford, and Wells Fargo. The Motley Fool is short Deere & Company and has the following options: short March 2016 $52 puts on Wells Fargo. The Motley Fool recommends General Motors. Try any of our Foolish newsletter servicesfree for 30 days . We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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So, when the collapse happened, they had to get a $3 billion preferred share TARP-esque buyout from Warren Buffett, who gave them a little bit of approval there, it made them look in the mirror and say, "Oh, wow, we really should get out of this capital business and focus on what we do well as an industrial manufacturer." The interesting thing now is, since it's sold of such a large component of its GE Capital, it's to the point where it maybe shouldn't necessarily be considered a systematically important financial institution anymore. And hopefully the federal government will drop that systematically important designation soon enough, because for GE to really unleash their capital, all that reserves built up, not just in terms of returning to shareholders but even toward reinvestment in the actual business itself, it really needs to happen.
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Crowe: Yeah, when you're looking at the financial arm, if you're looking at a business in this sort of realm, the captive finance aspect of a business, obviously the risk of default is probably the first thing you think about. Also, what a SIFI designation means and why it's not the most sought-after title, and one thing to check out before going in to buy a new car. A full transcript follows the video.
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So, that's a finance company that is not a bank, a non-banking finance company is the official designation for these things, and it's literally anything from a pawn shop to Lending Club or... Crowe: What, you've never bought a car from the pawn shop? Also, what a SIFI designation means and why it's not the most sought-after title, and one thing to check out before going in to buy a new car. A full transcript follows the video.
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Also, what a SIFI designation means and why it's not the most sought-after title, and one thing to check out before going in to buy a new car. A full transcript follows the video. This podcast was recorded on Feb. 8, 2016.
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2016-02-08 00:00:00 UTC
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Crown Holdings (CCK) Tops Earnings in Q4, Sales trail
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https://www.nasdaq.com/articles/crown-holdings-cck-tops-earnings-in-q4-sales-trail-2016-02-08
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Shares of Crown Holdings, Inc.CCK gained as much as 7.2% after the company reported fourth-quarter 2015 results on Feb 3. Adjusted earnings per share of 70 cents in the quarter surpassed the Zacks Consensus Estimate by a penny but increased roughly by 46% year over year.
On a reported basis, earnings came in at 47 cents per share, a significant improvement from 9 cents in the year-ago quarter.
Crown Holdings Inc. (CCK) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany
Full-Year 2015 Updates
For full-year 2015, Crown Holdings' adjusted earnings were $3.59 per share, up 5.3% year over year.
Net Sales for full-year 2015 were $8,762 million, down 3.7% year over year from $9,097 million in 2014.
Operational Update
Net sales in the quarter declined 4.7% year over year to $2,027 million from $2,127 million in the year-ago quarter. Revenues also lagged the Zacks Consensus Estimate of $2,134 million. In constant currency, revenues increased roughly 3% over fourth-quarter 2014.
Cost of products sold went down 8.7% year over year to $1.63 billion. Gross profit increased by 16.4% to $398 million, while gross margin increased 19.6% in the quarter, both on a year-over-year basis.
Selling and administrative expenses increased 3% year over year to $99 million. Adjusted operating profit improved 22.5% year over year at $234 million in the quarter. Operating margin improved to 11.5% compared to 9% in the year ago quarter.
Segment Performance
Net sales from the Americas Beverage segment were $691 million, improving 11% from $622 million in the year-ago quarter. Segment operating profit also rose to $127 million from $93 million in the year-ago quarter.
The North America Food segment sales went down 17% year over year to $150 million. Operating earnings decreased 30% year over year to $14 million.
The European Beverage segment sales dropped 5.4% year over year to $331 million. Consequently, operating income increased 19% year over year to $50 million.
Revenues in the European Food segment declined 12.9% year over year to $420 million. Segment operating profit rose by 52% to $38 million from $25 million in the year-ago quarter.
Revenues in the Asia Pacific segment decreased 6.6% year over year to $282 million. Operating profit remained flat at $34 million in the reported quarter.
Financial Update
Crown Holdings ended 2015 with cash and cash equivalents of $717 million, down 25.7% from $965 million at the end of 2014. The company recorded cash flow from operations of $956 million for the period of twelve months ended Dec 31, 2015, compared with $912 million for the twelve months ended Dec 31, 2014. Total debt of the company increased to $5.25 billion as of Dec 31, 2015 compared with $4.94 billion as of Dec 31, 2014.
Outlook
For 2016, Crown Holdings is expected to benefit from rise in global beverage can demand. To meet this increase in demand, the company intends to build new facility in Nichols, NY, capable of producing multiple sizes, which is scheduled to start operations from first quarter of 2017. Further the company is also constructing new beverage can plants in Phnom Penh, Cambodia, and Monterrey, Mexico, both to be operational during second and fourth quarters of 2016. These plants will meet the growing demand for beer packaged in cans in those markets.
Crown Holdings would introduce a second production line to its existing beverage can plant in Osmaniye, Turkey with operations starting during the fourth quarter of 2016.
Zacks Rank
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader industrial products sector include Briggs & Stratton Corporation BGG , Mobile Mini, Inc. MINI and Deere & Company DE . While Briggs & Stratton sports a Zacks Rank #1 (Strong Buy), both Mobile Mini and Deere & Company carry a Zacks Rank #2 (Buy).
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BRIGGS & STRATT (BGG): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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To meet this increase in demand, the company intends to build new facility in Nichols, NY, capable of producing multiple sizes, which is scheduled to start operations from first quarter of 2017. Operational Update Net sales in the quarter declined 4.7% year over year to $2,027 million from $2,127 million in the year-ago quarter. Operating earnings decreased 30% year over year to $14 million.
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The company recorded cash flow from operations of $956 million for the period of twelve months ended Dec 31, 2015, compared with $912 million for the twelve months ended Dec 31, 2014. While Briggs & Stratton sports a Zacks Rank #1 (Strong Buy), both Mobile Mini and Deere & Company carry a Zacks Rank #2 (Buy). Click to get this free report CROWN HLDGS INC (CCK): Free Stock Analysis Report MOBILE MINI INC (MINI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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Operational Update Net sales in the quarter declined 4.7% year over year to $2,027 million from $2,127 million in the year-ago quarter. Click to get this free report CROWN HLDGS INC (CCK): Free Stock Analysis Report MOBILE MINI INC (MINI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here. Operating earnings decreased 30% year over year to $14 million.
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Operational Update Net sales in the quarter declined 4.7% year over year to $2,027 million from $2,127 million in the year-ago quarter. Click to get this free report CROWN HLDGS INC (CCK): Free Stock Analysis Report MOBILE MINI INC (MINI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here. Operating earnings decreased 30% year over year to $14 million.
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a7d348ce-0e20-44bd-bde8-012e21b01db1
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722698.0
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2016-02-04 00:00:00 UTC
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Illinois Tool Works a Top Socially Responsible Dividend Stock With 2.5% Yield (ITW)
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DE
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https://www.nasdaq.com/articles/illinois-tool-works-top-socially-responsible-dividend-stock-25-yield-itw-2016-02-04
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nan
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nan
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Illinois Tool Works, Inc. (Symbol: ITW) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society - for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel , Illinois Tool Works, Inc. is a member of the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), making up 0.38% of the underlying holdings of the fund, which owns $1,823,799 worth of ITW shares.
The annualized dividend paid by Illinois Tool Works, Inc. is $2.20/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 12/29/2015. Below is a long-term dividend history chart for ITW, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
ITW operates in the Industrial Machinery & Equipment sector, among companies like Danaher Corp. ( DHR ), and Deere & Co. ( DE ).
Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society - for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol. Below is a long-term dividend history chart for ITW, which the DividendRank report stressed as being of key importance. ITW operates in the Industrial Machinery & Equipment sector, among companies like Danaher Corp. ( DHR ), and Deere & Co. ( DE ).
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Illinois Tool Works, Inc. (Symbol: ITW) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel , Illinois Tool Works, Inc. is a member of the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), making up 0.38% of the underlying holdings of the fund, which owns $1,823,799 worth of ITW shares. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Illinois Tool Works, Inc. (Symbol: ITW) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel , Illinois Tool Works, Inc. is a member of the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), making up 0.38% of the underlying holdings of the fund, which owns $1,823,799 worth of ITW shares. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1e127be1-97eb-4f59-a859-f3c866600903
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722699.0
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2016-02-03 00:00:00 UTC
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Will 2016 Be Deere & Company's Worst Year Yet?
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DE
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https://www.nasdaq.com/articles/will-2016-be-deere-companys-worst-year-yet-2016-02-03
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nan
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nan
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2015 was hardly a banner year for Deere & Company . The company's stock dropped 14% and operations took a hard turn south as the global economy started to slow and the dollar strengthened.
As we look forward to 2016, is Deere headed for its worst year yet?
Momentum is heading lower
You can see below that revenue and earnings are both trending significantly lower right now and it's a trend that shows no signs of abating.
DE Revenue (TTM) data by YCharts .
Agriculture prices are have pulled back, mineral prices are down, and the energy market is currently in shambles. To make matters worse, the dollar continues to get stronger, making any international sales look weaker when compared to a year ago.
The agriculture business is what John Deere is known for but what's hurting business right now is weakness in demand for products like dump trucks, backhoes, excavators, and skid steers. These are in demand from construction and mining industries across the world. And as those two sectors struggle, I don't see demand being strong for Deere in 2016.
International weakness will sting
In the fiscal fourth quarter, currency alone took a 5% bite out of revenue, a headwind that shows no sign of slowing down.
Real Trade Weighted US Dollar Index: Major Currencies data by YCharts .
Now, not only does Deere have to deal with weak demand in construction and mining in international markets, but also with products exported from the U.S. suddenly more expensive to customers. This could reduce sales or margins if prices are kept constant in local currencies. Worse yet, both could happen, which seemed likely in Q4 2015 as worldwide construction and forestry sales fell 32% but operating profit dropped 72%.
International performance was abysmal in the fourth quarter of 2015 and it doesn't seem to be getting better in 2016. More than domestic performance, international performance could take a huge bite out of the income statement this year.
No signs of recovery... yet
With all of these headwinds and more uncertainty in China than we've seen in years, I think it's going to be a rough year for Deere. The company has taken efforts to cut costs and shares are trading within shouting distance of a 52-week low, so expectations aren't high. But even for a major industrial supplier, I don't see any reason to be excited about this stock in 2016, even if it isn't the company's absolute worst year yet.
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The article Will 2016 Be Deere & Company's Worst Year Yet? originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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And as those two sectors struggle, I don't see demand being strong for Deere in 2016. International weakness will sting In the fiscal fourth quarter, currency alone took a 5% bite out of revenue, a headwind that shows no sign of slowing down. Now, not only does Deere have to deal with weak demand in construction and mining in international markets, but also with products exported from the U.S. suddenly more expensive to customers. 2015 was hardly a banner year for Deere & Company .
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And as those two sectors struggle, I don't see demand being strong for Deere in 2016. International weakness will sting In the fiscal fourth quarter, currency alone took a 5% bite out of revenue, a headwind that shows no sign of slowing down. The article Will 2016 Be Deere & Company's Worst Year Yet? 2015 was hardly a banner year for Deere & Company .
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And as those two sectors struggle, I don't see demand being strong for Deere in 2016. International weakness will sting In the fiscal fourth quarter, currency alone took a 5% bite out of revenue, a headwind that shows no sign of slowing down. 2015 was hardly a banner year for Deere & Company . As we look forward to 2016, is Deere headed for its worst year yet?
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And as those two sectors struggle, I don't see demand being strong for Deere in 2016. International weakness will sting In the fiscal fourth quarter, currency alone took a 5% bite out of revenue, a headwind that shows no sign of slowing down. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 2015 was hardly a banner year for Deere & Company .
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143936d8-e184-4712-add5-4e40e429db0a
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