Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
| uuid
stringlengths 36
36
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
722700.0
|
2016-01-30 00:00:00 UTC
|
Deere & Company's Latest Sales Figures Give Little Comfort
|
DE
|
https://www.nasdaq.com/articles/deere-companys-latest-sales-figures-give-little-comfort-2016-01-30
|
nan
|
nan
|
The latest retail sales and dealer inventory figures from Deere & Company gave little cause for optimism. Consequently, the near-term risk in the stock is increasing. Longer term, Deere may be an attractive stock -- its prospects can turn around quickly if crop prices start to rise -- but investors are going to have to stomach the potential downside from a number of challenges in 2016. Let's take a quick look at the latest update from Deere.
Large agricultural machinery sales
While Deere doesn't give precise figures for its retail sales, the comments suggest significant declines in the large agricultural machinery market in December. That's problematic for Deere, because it's where inventory and sales pressure are the greatest.
For example, here is Deere's manager of investor communications, Susan Karlix, on the fourth-quarter earnings call in November: "Low commodity prices and stagnant farm incomes are continuing to pressure demand for farm equipment, with the decline being most pronounced in the sale of high-horsepower models."
Later, Tony Huegel, director of investor relations, described challenging conditions with large tractors: "[A]s you think about used equipment -- and I'll start with it's still a challenge, especially on large tractors -- we would continue to say there [are] more large-row crop tractors in used row crop tractors in the market in the U.S. and Canada than we would prefer."
Rivals suffering
AGCO Corporation , owner of Massey Ferguson and Challenger, is also seeing pressure. A breakout of its estimated 2015 revenue shows its reliance on large agricultural machinery. Note that AGCO generates only around 3% of its revenue from the sub-40HP machinery market.
In addition, AGCO's forecast for 2016 high-HP tractor industry retail unit sales is for a 15% to 20% decline, but 100-plus HP PTO tractor industry sales declined 31% in December. In comparison, Deere's overall forecast for North American agriculture and turf sales is for a 15% to 20% decline in 2016.
It gets worse. Back at the start of December, a dealer of CNH Industrial equipment, Titan Machinery, Inc. , had its CEO, David Meyer, describing how its third-quarter earnings were affected by "lower-than-anticipated revenue contribution from our parts and service businesses." He added: "Farmers throughout our key market experienced very favorable harvest conditions, which resulted in a relatively fast harvest requiring minimal equipment repairs."
Titan Machinery generates the bulk of its profit from parts and service business, so it's obviously an issue for the company, and original equipment manufacturers are also likely to be affected. A farmer who hasn't had to replace parts or service his tractor is probably less inclined to see the need to replace it -- a consideration for CNH Industrial investors and the rest of the industry.
The takeaway
All told, Deere's latest sales data gave little support to the idea that the sales decline is moderating just yet, and Titan Machinery's results are also a cause for concern. As ever, commentary on Deere should be qualified with the proviso that higher crop prices can turn things around, but until that happens, Deere's near-term risk makes the stock worth avoiding, in my view.
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 Deere & Company's Latest Sales Figures Give Little Comfort originally appeared on Fool.com.
Lee Samaha 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.
|
Longer term, Deere may be an attractive stock -- its prospects can turn around quickly if crop prices start to rise -- but investors are going to have to stomach the potential downside from a number of challenges in 2016. Back at the start of December, a dealer of CNH Industrial equipment, Titan Machinery, Inc. , had its CEO, David Meyer, describing how its third-quarter earnings were affected by "lower-than-anticipated revenue contribution from our parts and service businesses." The latest retail sales and dealer inventory figures from Deere & Company gave little cause for optimism.
|
The latest retail sales and dealer inventory figures from Deere & Company gave little cause for optimism. Large agricultural machinery sales While Deere doesn't give precise figures for its retail sales, the comments suggest significant declines in the large agricultural machinery market in December. Back at the start of December, a dealer of CNH Industrial equipment, Titan Machinery, Inc. , had its CEO, David Meyer, describing how its third-quarter earnings were affected by "lower-than-anticipated revenue contribution from our parts and service businesses."
|
Large agricultural machinery sales While Deere doesn't give precise figures for its retail sales, the comments suggest significant declines in the large agricultural machinery market in December. Later, Tony Huegel, director of investor relations, described challenging conditions with large tractors: "[A]s you think about used equipment -- and I'll start with it's still a challenge, especially on large tractors -- we would continue to say there [are] more large-row crop tractors in used row crop tractors in the market in the U.S. and Canada than we would prefer." In addition, AGCO's forecast for 2016 high-HP tractor industry retail unit sales is for a 15% to 20% decline, but 100-plus HP PTO tractor industry sales declined 31% in December.
|
Large agricultural machinery sales While Deere doesn't give precise figures for its retail sales, the comments suggest significant declines in the large agricultural machinery market in December. In addition, AGCO's forecast for 2016 high-HP tractor industry retail unit sales is for a 15% to 20% decline, but 100-plus HP PTO tractor industry sales declined 31% in December. The latest retail sales and dealer inventory figures from Deere & Company gave little cause for optimism.
|
39519837-db05-4727-be38-3b438a8060a5
|
722701.0
|
2016-01-30 00:00:00 UTC
|
What Monsanto Management Sees Ahead for 2016
|
DE
|
https://www.nasdaq.com/articles/what-monsanto-management-sees-ahead-2016-2016-01-30
|
nan
|
nan
|
Image: Monsanto.
The farm industry seeks any yield-enhancing edge it can find, and Monsanto has made it its mission to give farmers the tools they need to succeed. Yet in its recent quarterly report, Monsanto fell short of its hopes, suffering from the same headwinds that have held back peers like farm-equipment specialist Deere . Still, Monsanto CEO Hugh Grant and his team of executives have a lot of confidence in the seed and fertilizer company's future prospects. Let's take a closer look at what Monsanto's leaders had to say.
"The breadth, depth, and productivity of our pipeline give us confidence in both our long-term growth targets as well as the strong role that we believe we will play in addressing the evolving landscape across agriculture." -- CEO Hugh Grant
Many investors have focused on Monsanto's near-term challenges. Crop prices are down, and that makes farm professionals less willing and able to spend money on the yield-enhancing products that Monsanto offers. Yet Grant takes a longer-term view, pointing to Monsanto's strategy toward creating gene stacks that will allow combinations of desirable traits to suit farmers in various climates and environments around the world. Given its technological edge, Monsanto expects great things in the future.
"We'll continue with a disciplined approach to evaluating M&A opportunities as we seek a strong strategic fit and synergistic value."-Grant
Consolidation has hit the agricultural productivity industry hard, with two of Monsanto's main rivals choosing to merge. Monsanto's own efforts to find a partner with which to merge have thus far come to naught, but Grant isn't upset with that fact. In his view, the company has a strong plan as an independent player in the industry, and he believes that it will be a partner of choice for prospective merger partners. With choices ranging from licensing relationships, collaborative partnerships, or full-out acquisitions, Monsanto has set the stage to retain its leadership role in the industry.
"The competitive advantage in R&D is what feeds our biggest commercial advantage."-CTO Robb Fraley
Monsanto's pride and joy is its breeding program, and the company hasn't been afraid to spend to enhance it. With the largest and most diverse germplasm library, an unparalleled set of discovery technologies, and a huge integrated testing network, Monsanto has been at the forefront of finding attractive new traits to offer its customers. Genomewide selection will only add to Monsanto's capabilities and bring new products to the table even faster.
"We continue to progress with our plans for the coming U.S. season at Climate, where we're working toward the closing of our most recent agreement with John Deere."-COO Brett Begemann
Monsanto's purchase of The Climate Corporation broadened its ability to use data-analytics techniques to assist farmers in crop management. Late last year, the company made a deal with Deere by which Deere would acquire the Precision Planting equipment business, and Climate would make its FieldView platform available in Deere's farm equipment. The move will give farmers the ability to get seamless access to agronomic data in the field, letting them be as precise as necessary in planning strategies for planting, fertilizer and pesticide application, and harvesting. Monsanto's coordination with Deere is a natural fit that could yield further gains in the future.
"Despite some moderating in our outlook for currency and corn price-mix lift with the competitive pricing dynamics in this challenging kind of environment, we still see an opportunity for a 5% to 7% growth in Seeds and Genomics gross profit."-CFO Pierre Courduroux
Monsanto has faced many of the same challenges as other companies throughout the economy. The strong dollar has hit the company's revenue and earnings, and it expects further weakness to come due to the devaluation of the Argentine peso. Nevertheless, Monsanto sees plenty of licensing revenue coming through its pipeline, and that should help offset crop-price and currency challenges and give the company the ability to sustain its growth even in tough times.
Monsanto has taken a short-term hit from weakness in the industry. With its long-term vision, though, Monsanto is setting itself up for a rebound as soon as commodity prices start to cooperate.
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 Monsanto Management Sees Ahead for 2016 originally appeared on Fool.com.
Dan Caplinger 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.
|
Yet Grant takes a longer-term view, pointing to Monsanto's strategy toward creating gene stacks that will allow combinations of desirable traits to suit farmers in various climates and environments around the world. "Despite some moderating in our outlook for currency and corn price-mix lift with the competitive pricing dynamics in this challenging kind of environment, we still see an opportunity for a 5% to 7% growth in Seeds and Genomics gross profit. The farm industry seeks any yield-enhancing edge it can find, and Monsanto has made it its mission to give farmers the tools they need to succeed.
|
The farm industry seeks any yield-enhancing edge it can find, and Monsanto has made it its mission to give farmers the tools they need to succeed. Still, Monsanto CEO Hugh Grant and his team of executives have a lot of confidence in the seed and fertilizer company's future prospects. Late last year, the company made a deal with Deere by which Deere would acquire the Precision Planting equipment business, and Climate would make its FieldView platform available in Deere's farm equipment.
|
Still, Monsanto CEO Hugh Grant and his team of executives have a lot of confidence in the seed and fertilizer company's future prospects. The farm industry seeks any yield-enhancing edge it can find, and Monsanto has made it its mission to give farmers the tools they need to succeed. Yet in its recent quarterly report, Monsanto fell short of its hopes, suffering from the same headwinds that have held back peers like farm-equipment specialist Deere .
|
In his view, the company has a strong plan as an independent player in the industry, and he believes that it will be a partner of choice for prospective merger partners. Late last year, the company made a deal with Deere by which Deere would acquire the Precision Planting equipment business, and Climate would make its FieldView platform available in Deere's farm equipment. The farm industry seeks any yield-enhancing edge it can find, and Monsanto has made it its mission to give farmers the tools they need to succeed.
|
08f972ab-47ff-400d-ba7e-1a3569ab2293
|
722702.0
|
2016-01-23 00:00:00 UTC
|
Will Deere & Company Raise Its Dividend in 2016?
|
DE
|
https://www.nasdaq.com/articles/will-deere-company-raise-its-dividend-2016-2016-01-23
|
nan
|
nan
|
There hasn't been a lot of positive news for Deere & Company investors in the past year. Fiscal 2015 revenue dropped 21.8% to $25.8 billion, and net income was down 38.6% to $1.94 billion.
Through it all, Deere & Company actually raised its dividend by a nickel per quarter to $2.40 per share in 2015. Is another increase in store this year?
Operations are in a world of hurt
You might think Deere & Company would have a pretty stable business in Agriculture & Turf, as it calls the business, because no matter the economy, crops have to be grown, and the lawn has to be mown. But the consistency of use of John Deere equipment doesn't mean its sales are steady.
If you were in the market for a riding lawn mower, and the economy got rough, you could easily put off the purchase for a year or two and use an older mower. By the same token, farmers put off acquiring large equipment until profits are high and they have the money to buy it, which, as you can see below, isn't likely the case today given crop prices.
U.S. Soybean Price (per mt) data by YCharts .
Agriculture & Turf is Deere & Company's biggest segment, and it's struggling because it's in a weak spot in the cycle. But Construction & Forestry segment sales are actually in worse shape. Fiscal fourth quarter net sales dropped 32% and operating profit plunged 72%, both driven by weakness in international markets.
The slowdown in China's economy has meant a big drop in demand for construction equipment, and a strong dollar hasn't helped matters. It's easy to argue that China and other parts of Asia were in a construction bubble over the past few years, but until there's a visible slowdown, companies don't know when the good times will end. For Deere & Company, the slowdown came in 2015, and I don't see an imminent turnaround in demand -- at least not in Asia.
But wait, there's good news
There's no doubt 2015 was bad for Deere & Company, but when it comes to the dividend, I think there's a lot to like. Earnings for the last fiscal year were $5.77 on a diluted basis, meaning more than 2 times coverage of the $2.40 dividend.
While fiscal 2016 won't be a great year, it also isn't expected to be a bad year. Analysts are looking for earnings of $4.23 per share, and keep in mind that Deere & Company actually beat estimates each quarter last year.
With earnings still well above the dividend payout, and Deere & Company on a streak of increasing its dividend every year since 2003, I think another increase is coming in 2016. But it probably won't be anything more than a symbolic dividend increase given the operating environment. And that's what investors should really watch long term, because if demand doesn't return, the company won't have much room to increase dividends in the future.
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 Will Deere & Company Raise Its Dividend in 2016? 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.
|
The slowdown in China's economy has meant a big drop in demand for construction equipment, and a strong dollar hasn't helped matters. There hasn't been a lot of positive news for Deere & Company investors in the past year. Through it all, Deere & Company actually raised its dividend by a nickel per quarter to $2.40 per share in 2015.
|
There hasn't been a lot of positive news for Deere & Company investors in the past year. Agriculture & Turf is Deere & Company's biggest segment, and it's struggling because it's in a weak spot in the cycle. Through it all, Deere & Company actually raised its dividend by a nickel per quarter to $2.40 per share in 2015.
|
There hasn't been a lot of positive news for Deere & Company investors in the past year. With earnings still well above the dividend payout, and Deere & Company on a streak of increasing its dividend every year since 2003, I think another increase is coming in 2016. And that's what investors should really watch long term, because if demand doesn't return, the company won't have much room to increase dividends in the future.
|
There hasn't been a lot of positive news for Deere & Company investors in the past year. With earnings still well above the dividend payout, and Deere & Company on a streak of increasing its dividend every year since 2003, I think another increase is coming in 2016. Through it all, Deere & Company actually raised its dividend by a nickel per quarter to $2.40 per share in 2015.
|
0ebade62-b094-47f5-984f-1c135ceecd80
|
722703.0
|
2016-01-20 00:00:00 UTC
|
Raven's Applied Technology Enhances Hawkeye to Drive Sales
|
DE
|
https://www.nasdaq.com/articles/ravens-applied-technology-enhances-hawkeye-to-drive-sales-2016-01-20
|
nan
|
nan
|
The Applied Technology Division of Raven Industries Inc.RAVN announced several enhancements to its Hawkeye Nozzle Control System. The developments, including virtual section capability, Sidekick Pro direct injection compatibility, new sprayer kits and Hawkeye HD, highlight the company's commitment toward its highest growth potential projects.
Raven had launched Hawkeye - an innovative pressure-based nozzle control system that provides specific and accurate application across the entire sprayer boom and field in addition to drift reduction - in 2014. The company projects this as a versatile tool with superior quality and simplicity.
Since its introduction, Hawkeye has been fetching several business development projects for Raven. The enhancements are thus expected to significantly add to the company's sales.
Hawkeye HD, in particular, will offer customers an individual nozzle on and off system to reduce costly skips or overlaps. Customers using Hawkeye will be able to upgrade to HD easily.
Sidekick Pro direct injection will allow additional chemicals to be injected in the line as needed. Direct injection offers greater flexibility in applications to easily handle weed resistance and other challenges.
Moreover, the virtual section capability will program additional sections for on/off control, with up to 16 sections through Raven's Viper 4 field computer. In addition, Raven's new sprayer kits will now be available on Case IH, AGCO Corporation's AGCO AGCO brand, New Holland, Miller and Equipment Technologies sprayers. Kits will also be available shortly on Deere & Company DE 's John Deere and Fast Nitrogen applicators.
Notably, Raven will continue to invest in its business by funding key R&D initiatives in each of its three operating divisions and long-term growth-related capital projects to maintain its competitiveness in the market. The company also has significant restructuring plans to address its market conditions.
Raven currently carries a Zacks Rank #4 (Sell). A better-ranked stock in the diversified-operations industry is Macquarie Infrastructure Corporation MIC carrying a Zacks Rank #1 (Strong 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
RAVEN INDS INC (RAVN): Free Stock Analysis Report
MACQUARIE INFRA (MIC): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The developments, including virtual section capability, Sidekick Pro direct injection compatibility, new sprayer kits and Hawkeye HD, highlight the company's commitment toward its highest growth potential projects. Raven had launched Hawkeye - an innovative pressure-based nozzle control system that provides specific and accurate application across the entire sprayer boom and field in addition to drift reduction - in 2014. Since its introduction, Hawkeye has been fetching several business development projects for Raven.
|
The developments, including virtual section capability, Sidekick Pro direct injection compatibility, new sprayer kits and Hawkeye HD, highlight the company's commitment toward its highest growth potential projects. Click to get this free report RAVEN INDS INC (RAVN): Free Stock Analysis Report MACQUARIE INFRA (MIC): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. Raven had launched Hawkeye - an innovative pressure-based nozzle control system that provides specific and accurate application across the entire sprayer boom and field in addition to drift reduction - in 2014.
|
The developments, including virtual section capability, Sidekick Pro direct injection compatibility, new sprayer kits and Hawkeye HD, highlight the company's commitment toward its highest growth potential projects. Raven had launched Hawkeye - an innovative pressure-based nozzle control system that provides specific and accurate application across the entire sprayer boom and field in addition to drift reduction - in 2014. Click to get this free report RAVEN INDS INC (RAVN): Free Stock Analysis Report MACQUARIE INFRA (MIC): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
|
The developments, including virtual section capability, Sidekick Pro direct injection compatibility, new sprayer kits and Hawkeye HD, highlight the company's commitment toward its highest growth potential projects. Raven had launched Hawkeye - an innovative pressure-based nozzle control system that provides specific and accurate application across the entire sprayer boom and field in addition to drift reduction - in 2014. Click to get this free report RAVEN INDS INC (RAVN): Free Stock Analysis Report MACQUARIE INFRA (MIC): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.
|
5383c3f9-5771-4d8e-93f1-72846447c706
|
722704.0
|
2016-01-14 00:00:00 UTC
|
Better Buy: Caterpillar Inc. or Deere & Co.?
|
DE
|
https://www.nasdaq.com/articles/better-buy-caterpillar-inc-or-deere-co-2016-01-14
|
nan
|
nan
|
Image source: Deere.
The sputtering global economy has had a big impact on makers of heavy machinery, as the industrial customers in the construction, mining, and energy industries have cut back on capital spending in order to preserve cash. That's been bad news for Caterpillar and Deere , both of which have seen substantial losses in 2015. Yet for those who see a turnaround in the cyclical industry in the long run, it's reasonable to ask which stock is a better buy right now. Let's compare Caterpillar and Deere on a number of metrics to see which makes more sense right now.
Valuation
Both Caterpillar and Deere have seen substantial share-price declines recently. Deere shares have fallen by about 25% just since last August, and Caterpillar is down by nearly a third since mid-2015.
The consequence of those stock drops has been to make each company's earnings multiples more attractive. Currently, both Caterpillar and Deere trade at almost identical trailing earnings multiples of around 12.5. Moreover, when you take into account the likelihood that each company will probably see their earnings decline in the near future, the two stocks still have similar forward earnings multiples as well, both scoring in the neighborhood of about 17 times forward earnings. Based solely on valuation, the stocks look very similar.
Dividends
For dividend investors, there's a much clearer distinction between Caterpillar and Deere. Deere pays a dividend yield of about 3.25% right now. Caterpillar has a much higher yield that's approaching 5%.
However, that difference doesn't make a decision cut and dried. That's because Caterpillar has chosen to keep a higher payout ratio, paying a dividend of about 60% of its earnings. That compares to a dividend payout ratio of just 40% for Deere. In other words, Deere has made a conscious decision to hold back more of its available cash for purposes other than paying dividends, while Caterpillar has made dividends more of a priority.
Indeed, Deere chose not to make a raise in its quarterly dividend in 2015, making the same decision it made in 2009 in response to tough economic conditions. Caterpillar went forward with an aggressive 10% dividend increase, prolonging a streak of annual increases that has extended for more than a decade. The confidence that shows should give Caterpillar investors more certainty about dividends in the future, giving the stock an edge over Deere.
Growth
Fundamentally, both Caterpillar and Deere have seen their businesses struggle lately. In its most recent quarter, Caterpillar posted overall sales declines of 19%. The company's energy and transportation segment saw the biggest drop, as revenue fell 25% because of the huge disruptions in the energy industry. Yet resources sales fell 17%, and the construction segment suffered a 15% decline. The company's forward outlook remained weak, with an overall revenue drop of 5% coming primarily from the mining and energy-oriented businesses.
For Deere, the most recent quarter's struggles were even worse, as worldwide net revenue dropped by 25%. CEO Sam Allen pointed to weakness in the global agricultural sector and a slowdown in the construction-equipment market to explain the decline, but the resulting drop of more than 45% in net income was nevertheless painful. Deere expects further declines for 2016, with company equipment revenue slated to fall 7% on particular weakness in agricultural equipment sales that could send results from its North American market down 15% to 20% from 2015 levels. Both Deere and Caterpillar appear to expect similar challenges as they navigate the tough economic environment.
Right now, there's a lot of uncertainty for both Caterpillar and Deere, making either one somewhat of a speculative purchase for short-term-minded traders. In the long run, though, both companies have more favorable prospects. Based on the comparisons above, Caterpillar arguably has more long-term upside, even though Deere might recover more quickly if the agricultural sector stands out from other parts of the economy.
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 Better Buy: Caterpillar Inc. or Deere & Co.? originally appeared on Fool.com.
Dan Caplinger 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.
|
CEO Sam Allen pointed to weakness in the global agricultural sector and a slowdown in the construction-equipment market to explain the decline, but the resulting drop of more than 45% in net income was nevertheless painful. Based on the comparisons above, Caterpillar arguably has more long-term upside, even though Deere might recover more quickly if the agricultural sector stands out from other parts of the economy. Image source: Deere.
|
Moreover, when you take into account the likelihood that each company will probably see their earnings decline in the near future, the two stocks still have similar forward earnings multiples as well, both scoring in the neighborhood of about 17 times forward earnings. That's because Caterpillar has chosen to keep a higher payout ratio, paying a dividend of about 60% of its earnings. The confidence that shows should give Caterpillar investors more certainty about dividends in the future, giving the stock an edge over Deere.
|
Dividends For dividend investors, there's a much clearer distinction between Caterpillar and Deere. In other words, Deere has made a conscious decision to hold back more of its available cash for purposes other than paying dividends, while Caterpillar has made dividends more of a priority. The confidence that shows should give Caterpillar investors more certainty about dividends in the future, giving the stock an edge over Deere.
|
Dividends For dividend investors, there's a much clearer distinction between Caterpillar and Deere. Indeed, Deere chose not to make a raise in its quarterly dividend in 2015, making the same decision it made in 2009 in response to tough economic conditions. Image source: Deere.
|
7e1f3472-505a-467e-a17c-8b3bd7bf8d21
|
722705.0
|
2015-12-28 00:00:00 UTC
|
Deere & Company (DE) Ex-Dividend Date Scheduled for December 29, 2015
|
DE
|
https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-december-29-2015-2015-12-28
|
nan
|
nan
|
Deere & Company ( DE ) will begin trading ex-dividend on December 29, 2015. A cash dividend payment of $0.6 per share is scheduled to be paid on February 01, 2016. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 7th quarter that DE has paid the same dividend. At the current stock price of $78.79, the dividend yield is 3.05%.
The previous trading day's last sale of DE was $78.79, representing a -19.79% decrease from the 52 week high of $98.23 and a 9.66% increase over the 52 week low of $71.85.
DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). DE's current earnings per share, an indicator of a company's profitability, is $5.76. Zacks Investment Research reports DE's forecasted earnings growth in 2016 as -26.3%, compared to an industry average of -15.8%.
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 )
Market Vectors Agribusiness ETF ( MOO )
iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
The top-performing ETF of this group is IBCE with an decrease of -0.85% over the last 100 days. VEGI has the highest percent weighting of DE at 7.45%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). Zacks Investment Research reports DE's forecasted earnings growth in 2016 as -26.3%, compared to an industry average of -15.8%. 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 ) Market Vectors Agribusiness ETF ( MOO ) iShares iBonds Mar Bond Corporate ex-Financials Term 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 December 29, 2015.
|
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 ) Market Vectors Agribusiness ETF ( MOO ) iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
|
A cash dividend payment of $0.6 per share is scheduled to be paid on February 01, 2016. DE's current earnings per share, an indicator of a company's profitability, is $5.76. The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) Market Vectors Agribusiness ETF ( MOO ) iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
|
61eba0ca-5353-40bd-8b60-9d737bd2c779
|
722706.0
|
2015-12-27 00:00:00 UTC
|
Will Caterpillar Inc. Stock Recoup This Year's Losses in 2016?
|
DE
|
https://www.nasdaq.com/articles/will-caterpillar-inc-stock-recoup-years-losses-2016-2015-12-27
|
nan
|
nan
|
Given Caterpillar 's exposure to beaten-down sectors like mining and energy, it's no surprise that it's one of the worst-performing Dow stocks of the year. In fact, Caterpillar is also among the bigger losers in the heavy-machinery industry, having underperformed peers like Deere and Manitowoc . While Manitowoc gave up most of its gains during the latter half of 2015, as plunging oil prices hit demand for off-highway equipment, Deere escaped the brunt of the pain as it's primarily an agriculture-equipment company, and farm commodities have held up stronger than metals and oil.
CAT, DE, MTW data by YCharts .
Given Caterpillar's precipitous fall during the past couple of years, the big question in investors' minds right now is whether the approaching year will provide some respite. Will 2016 be a turnaround year for Caterpillar, and will its stock regain some of its lost glory? Get some insight in the slideshow below.
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 .
Will Caterpillar Stock Recoup This Year's Losses in 2016? from The Motley Fool .
The article Will Caterpillar Inc. Stock Recoup This Year's Losses in 2016? originally appeared on Fool.com.
Neha Chamaria 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 - 2015 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.
|
In fact, Caterpillar is also among the bigger losers in the heavy-machinery industry, having underperformed peers like Deere and Manitowoc . While Manitowoc gave up most of its gains during the latter half of 2015, as plunging oil prices hit demand for off-highway equipment, Deere escaped the brunt of the pain as it's primarily an agriculture-equipment company, and farm commodities have held up stronger than metals and oil. CAT, DE, MTW data by YCharts .
|
In fact, Caterpillar is also among the bigger losers in the heavy-machinery industry, having underperformed peers like Deere and Manitowoc . While Manitowoc gave up most of its gains during the latter half of 2015, as plunging oil prices hit demand for off-highway equipment, Deere escaped the brunt of the pain as it's primarily an agriculture-equipment company, and farm commodities have held up stronger than metals and oil. CAT, DE, MTW data by YCharts .
|
In fact, Caterpillar is also among the bigger losers in the heavy-machinery industry, having underperformed peers like Deere and Manitowoc . While Manitowoc gave up most of its gains during the latter half of 2015, as plunging oil prices hit demand for off-highway equipment, Deere escaped the brunt of the pain as it's primarily an agriculture-equipment company, and farm commodities have held up stronger than metals and oil. CAT, DE, MTW data by YCharts .
|
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. In fact, Caterpillar is also among the bigger losers in the heavy-machinery industry, having underperformed peers like Deere and Manitowoc . While Manitowoc gave up most of its gains during the latter half of 2015, as plunging oil prices hit demand for off-highway equipment, Deere escaped the brunt of the pain as it's primarily an agriculture-equipment company, and farm commodities have held up stronger than metals and oil.
|
881a27de-bffe-4fa3-82ad-566eeb181998
|
722707.0
|
2015-12-24 00:00:00 UTC
|
MOO, MON, SYT, DE: ETF Outflow Alert
|
DE
|
https://www.nasdaq.com/articles/moo-mon-syt-de-etf-outflow-alert-2015-12-24
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $47.5 million dollar outflow -- that's a 5.2% decrease week over week (from 19,100,000 to 18,100,000). Among the largest underlying components of MOO, in trading today Monsanto Co. (Symbol: MON) is down about 0.3%, Syngenta AG (Symbol: SYT) is off about 0.1%, and Deere & Co. (Symbol: DE) is lower by about 0.7%. For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average:
Looking at the chart above, MOO's low point in its 52 week range is $44.76 per share, with $58.08 as the 52 week high point - that compares with a last trade of $47.34. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $44.76 per share, with $58.08 as the 52 week high point - that compares with a last trade of $47.34. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
|
For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $44.76 per share, with $58.08 as the 52 week high point - that compares with a last trade of $47.34. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $47.5 million dollar outflow -- that's a 5.2% decrease week over week (from 19,100,000 to 18,100,000).
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $47.5 million dollar outflow -- that's a 5.2% decrease week over week (from 19,100,000 to 18,100,000). For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $44.76 per share, with $58.08 as the 52 week high point - that compares with a last trade of $47.34. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
|
For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $44.76 per share, with $58.08 as the 52 week high point - that compares with a last trade of $47.34. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
|
a975e80b-9830-450c-9eb1-eb6dd97c0b45
|
722708.0
|
2015-12-23 00:00:00 UTC
|
Caterpillar Inc.'s Best Segment in 2015
|
DE
|
https://www.nasdaq.com/articles/caterpillar-incs-best-segment-2015-2015-12-23
|
nan
|
nan
|
Image: Cat Financial.
Heavy-equipment maker Caterpillar is well-known for its trademark yellow machinery, which you'll find at construction sites across the world. Yet Caterpillar has been stuck in a cyclical downturn for years, with sluggish activity in construction, mining, and most recently energy sending its revenue and profits plunging. One area of Caterpillar's operations has held up better than the rest, and many investors probably don't even realize that this division of the company even exists. Let's look closely at Caterpillar's financial products segment to see how it has withstood the brunt of the economic downturn.
Helping customers buy products
Caterpillar's financial products division has a different mission from the rest of the company. Whereas most of Caterpillar's efforts go toward manufacturing its heavy equipment, Caterpillar Financial is a separate subsidiary from the primary Caterpillar entity. Its goal is to offer a wide range of financial solutions to prospective customers, as well as the dealer networks that help Caterpillar sell much of its equipment. In addition to its popular machinery, Caterpillar offers financing options on its engines, Solar gas turbines, marine vessels, and other types of equipment.
Caterpillar Financial offers options that regular sources of financing typically won't match. The working capital loans, revolving lines of credit, and operating leases that Caterpillar offers are similar to what you'll find from a host of other heavy-equipment operators, including Deere 's John Deere Financial. But customers can also get protection beyond a standard warranty for Caterpillar equipment, as well as equipment protection plans and physical damage insurance.
Perhaps most importantly, Caterpillar offers options that allow customers to upgrade their equipment without the hassles of having to figure out what to do with their outdated products. Caterpillar Financial offers end-of-term solutions that include outright purchases of leased equipment, refinancing of existing loans, and return of equipment back to Caterpillar Financial. In addition, Caterpillar maintains a website offering used equipment at cheaper price points than its new products, and that enables Caterpillar Financial to structure deals in whatever way can generate a sale.
How Caterpillar Financial has fared in 2015
Through 2015, the performance of Caterpillar Financial has helped provide some stability to the big declines in revenue that the rest of the business has seen. During the first quarter, Caterpillar's primary product division saw sales fall 4%, but the financial products division saw only a 1% drop in revenue. The advantages became even clearer later in the year, as Cat Financial posted a 3% revenue decline in the second quarter compared to a 14% drop in sales for the remainder of the business.
Cat Financial hasn't been entirely invulnerable to the company's slump. In the third quarter, financial products revenue fell 14%, compared to the 19% drop in Caterpillar's overall sales. The company said that its financing rates fell during the quarter, and the decline in business has led to a smaller base of assets from which the financial division can earn profits. Nevertheless, company executives have been pleased with its performance, with CEO Doug Oberhelman saying at Caterpillar's most recent quarterly conference call, "Key metrics are in line with long-term averages despite weakness in a few very critical markets, and it's healthy, well-managed, and risk is very much under control."
Can Cat Financial lead Caterpillar higher?
Investors shouldn't expect too much from Caterpillar's financial products business. The division produces less than 10% of Caterpillar's total revenue, and so favorable trends for the business don't have a huge impact on the top line for the company overall.
More importantly, financing alone won't help Caterpillar's product sales bounce back. Many of Caterpillar's customers are in a position where they can't afford to take on any new financial obligations even if they don't involve a cash outlay, as additional debt would further hamper their ability to tap credit markets for more important financial needs. As long as customers give lower priority to equipment purchases, Caterpillar will struggle.
Nevertheless, in the long run, Cat Financial will play a vital role in Caterpillar's recovery once the cyclical downturns in its key industries start to reverse. When the crisis ends, customers will need new equipment in a hurry. Caterpillar can rely on its financial products division to help those customers get the products they want and thereby boost the company's overall revenue. That's something every Caterpillar shareholder can get behind.
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 Caterpillar Inc.'s Best Segment in 2015 originally appeared on Fool.com.
Dan Caplinger 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 - 2015 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.
|
The company said that its financing rates fell during the quarter, and the decline in business has led to a smaller base of assets from which the financial division can earn profits. Nevertheless, company executives have been pleased with its performance, with CEO Doug Oberhelman saying at Caterpillar's most recent quarterly conference call, "Key metrics are in line with long-term averages despite weakness in a few very critical markets, and it's healthy, well-managed, and risk is very much under control." Heavy-equipment maker Caterpillar is well-known for its trademark yellow machinery, which you'll find at construction sites across the world.
|
Caterpillar Financial offers end-of-term solutions that include outright purchases of leased equipment, refinancing of existing loans, and return of equipment back to Caterpillar Financial. Heavy-equipment maker Caterpillar is well-known for its trademark yellow machinery, which you'll find at construction sites across the world. Its goal is to offer a wide range of financial solutions to prospective customers, as well as the dealer networks that help Caterpillar sell much of its equipment.
|
Caterpillar Financial offers end-of-term solutions that include outright purchases of leased equipment, refinancing of existing loans, and return of equipment back to Caterpillar Financial. How Caterpillar Financial has fared in 2015 Through 2015, the performance of Caterpillar Financial has helped provide some stability to the big declines in revenue that the rest of the business has seen. Heavy-equipment maker Caterpillar is well-known for its trademark yellow machinery, which you'll find at construction sites across the world.
|
Perhaps most importantly, Caterpillar offers options that allow customers to upgrade their equipment without the hassles of having to figure out what to do with their outdated products. Heavy-equipment maker Caterpillar is well-known for its trademark yellow machinery, which you'll find at construction sites across the world. Its goal is to offer a wide range of financial solutions to prospective customers, as well as the dealer networks that help Caterpillar sell much of its equipment.
|
f2d8939a-a9a0-4f20-8d32-7c4bc6c92daa
|
722709.0
|
2015-12-21 00:00:00 UTC
|
Will Caterpillar Inc. Raise Its Dividend in 2016?
|
DE
|
https://www.nasdaq.com/articles/will-caterpillar-inc-raise-its-dividend-2016-2015-12-21
|
nan
|
nan
|
CAT Dividend data by YCharts . Note: 2012 spike reflects acceleration of dividend to December rather than ordinary January payout.
Nevertheless, Caterpillar's recent strategic efforts have emphasized how high a priority it puts on dividends. With a yield half again higher than Deere's, Caterpillar prides itself on having a strong balance sheet, leaving it in a solid position to take measures like incurring debt if it needs to in order to sustain dividend levels temporarily. In addition, cash flow remains robust, and the company has worked hard to cut costs and squeeze as much operating margin as possible. With expectations for capital expenditures falling, Caterpillar won't need as much money for internal investment in a sluggish economic environment, and that should free up further cash to go toward dividend payments if necessary.
When will Caterpillar's dividends rise again?
Caterpillar's management also has said that it's behind keeping the dividend as healthy as possible. At its most recent quarterly news conference, CEO Doug Oberhelman said, "The dividend is a priority use of cash. ... We've paid a dividend every year for over 20 years, and maintaining that is a key use of our cash and a priority for our company." Many companies that make similar statements later have to pull back from them if conditions worsen, but back in June when Caterpillar announced its most recent dividend increase, Oberhelman specifically noted the company's track record of boosting dividends "despite periods of business and economic uncertainty." That's a decision Deere hasn't made, instead keeping its dividend stable throughout 2015 as it goes through some similar challenges of its own.
Accordingly, it's reasonable to expect that as long as Caterpillar can manage to keep 2016 earnings from falling further from their current depressed levels, shareholders should see higher dividend payments around the middle of the year. The growth rate might well slow, but as Caterpillar approaches the quarter-century mark in terms of higher payouts, the stakes of allowing the dividend-boost streak to end get larger, and Oberhelman and his team look prepared to do whatever it takes to keep providing dividend growth to shareholders.
The article Will Caterpillar Inc. Raise Its Dividend in 2016? originally appeared on Fool.com.
Dan Caplinger 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 - 2015 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.
|
With a yield half again higher than Deere's, Caterpillar prides itself on having a strong balance sheet, leaving it in a solid position to take measures like incurring debt if it needs to in order to sustain dividend levels temporarily. With expectations for capital expenditures falling, Caterpillar won't need as much money for internal investment in a sluggish economic environment, and that should free up further cash to go toward dividend payments if necessary. Accordingly, it's reasonable to expect that as long as Caterpillar can manage to keep 2016 earnings from falling further from their current depressed levels, shareholders should see higher dividend payments around the middle of the year.
|
Accordingly, it's reasonable to expect that as long as Caterpillar can manage to keep 2016 earnings from falling further from their current depressed levels, shareholders should see higher dividend payments around the middle of the year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. CAT Dividend data by YCharts .
|
With a yield half again higher than Deere's, Caterpillar prides itself on having a strong balance sheet, leaving it in a solid position to take measures like incurring debt if it needs to in order to sustain dividend levels temporarily. With expectations for capital expenditures falling, Caterpillar won't need as much money for internal investment in a sluggish economic environment, and that should free up further cash to go toward dividend payments if necessary. Many companies that make similar statements later have to pull back from them if conditions worsen, but back in June when Caterpillar announced its most recent dividend increase, Oberhelman specifically noted the company's track record of boosting dividends "despite periods of business and economic uncertainty."
|
Caterpillar's management also has said that it's behind keeping the dividend as healthy as possible. Accordingly, it's reasonable to expect that as long as Caterpillar can manage to keep 2016 earnings from falling further from their current depressed levels, shareholders should see higher dividend payments around the middle of the year. CAT Dividend data by YCharts .
|
a5c8130f-97db-4eba-b749-71312785d28a
|
722710.0
|
2015-12-18 00:00:00 UTC
|
7 Best Cheap Stocks to Buy for 2016
|
DE
|
https://www.nasdaq.com/articles/7-best-cheap-stocks-buy-2016-2015-12-18
|
nan
|
nan
|
By James Brumley, InvestorPlace Feature Writer
With the end of the year upon us and a new calendar year approaching, it’s time to prune your portfolios of the dead weight and plant the seeds that will flourish in the coming year.
And what better foot to start off the new year with than a couple of undervalued names that have lots of room to make forward progress before hitting any major valuation headwind?
PLUS: 6 Stocks to Buy That Could DOUBLE in 2016
With that as the backdrop, here’s a closer look at some unusually cheap stocks to buy in the foreseeable future.
Don’t let the word “cheap” throw you for a loop, these are underloved stocks that will serve as a way to squeeze a little extra juice out of the market in 2016.
Hewlett Packard Enterprise (HPE)
Yes, Hewlett-Packard was struggling before it split into two companies, but the division that was facing the core of the struggle was the other division, HP (HPQ), which makes personal computers and printers.
The business-oriented, cloud division — the one known as Hewlett Packard Enterprise (HPE) — is actually compelling.
One of the ways HPE is compelling is in its outlook shared last month with its quarterly earnings report. It affirmed per-share profit guidance of between $1.85 and $1.95 for the current fiscal year (ending in October), right in line with estimates.
And given that this side of the old Hewlett Packard company has now posted two quarters of year-over-year revenue growth (when stripping out the effects of currency volatility), it wouldn’t be wise to bet against it now … especially in light of the strengthened partnership with Microsoft (MSFT).
The kicker: With a forward-looking price-earnings of only 7.7, HPE easily qualifies as one of the top cheap stocks to buy sooner than later.
Gilead Sciences (GILD)
Gilead Sciences (GILD) is another iconic name that’s wrongfully been forced to join the ranks of the market’s erroneously cheap stocks … not that bargain hunters are complaining. As of the latest look, GILD is priced at a trailing P/E of 9.3 and a forward-looking earnings multiple of 8.5.
The single-digit valuation is the result of an 18% tumble since June, though most of the damage was done by the now-infamous Hillary Clinton tweet from Sept. 21 that took dead-aim at specialty pharmaceutical pricing.
Although the presidential-hopeful wasn’t explicitly targeting Gilead Sciences, in light of the uproar over the high price of Gilead’s recently unveiled hepatitis C drugs Harvoni and Sovaldi (a full treatment with Sovaldi costs $84,000, and a full treatment of Harvoni costs almost $100,000), GILD investors were fearful any regulatory reforms would reach far and wide.
Plainly put, though, those threats are more bark than bite; the worst-case scenario is more than priced in.
In the meantime, Gilead Sciences recently dished out an encouraging update on its phase 3 leukemia drug Zydelig. Though Zydelig may not become a blockbuster, it does speak to Gilead’s cancer ambitions and capabilities. And Gilead has also exposed its hand as a buyer of whatever biopharma capabilities it wants but doesn’t yet have.
AMAG Pharmaceuticals (AMAG)
With a market cap of only $929 million, AMAG Pharmaceuticals (AMAG) isn’t exactly a household name. Unlike so many other similarly sized biopharma names, though, AMAG isn’t some developmental outfit with more dreams than marketable drugs in the pipeline. AMAG Pharmaceuticals is selling lots of drugs right now, and turning a profit by doing so.
Over the past four reported quarters, AMAG Pharmaceuticals has driven $362 million in sales, and turned $168 million of that into net income.
Not bad.
Those figures translate into a perfectly palatable price-sales ratio of 2.4 and trailing P/E ratio of 5.2. And with a portfolio of perennially marketable drugs that other drugmakers aren’t clamoring to compete with, the top and bottom lines are growing at a sustainable pace.
There’s a small detail, however, that makes AMAG one of the best dirt-cheap stocks to buy right now — it’s got $442 million in the bank right now, which means the portfolio and pipeline are valued at a mere $487 million.
Pilgrim’s Pride (PPC)
Between another avian flu breakout, rising operational costs, export restrictions and higher chicken prices in grocery stores despite lower wholesale prices, Pilgrim’s Pride (PPC) won’t be looking back on 2015 as a year to remember.
Neither will investors.
Thanks to all the aforementioned headwinds, PPC shares are down more than 20% year-to-date. The sellers, however, may have overshot. As of the latest look, PPC shares are priced at a trailing P/E of 7.46 and a projected 10.6.
Those numbers more than qualify Pilgrim’s Pride shares to join the ranks of the market’s cheap stocks at this time, but are they actually buy-worthy?
Giving credit where it’s due, Alpha Gen Capital has noted that the so-called chicken cycle (of overproduction that leads to sub-par pricing that in turns leads to underproduction which leads to high pricing, etc) is at or near a cyclical low, meaning the environment for chicken producers should swing upward in 2016.
That shift, along with a costs-saving initiative Pilgrim’s Pride has put into place this year, likely means PPC is underestimated heading into the new year.
Citigroup (C)
Citigroup (C) shares are right back where they were in mid-2013, leaving behind a trail of falling year-over-year revenue, and at best, choppy revenue.
The coming year may finally be one that sees Citigroup turn the corner, so to speak, sending C shares higher in a meaningful way.
That’s a tough idea to swallow for some traders, with echoes of reports that the bank would be taking a $300 million “repositioning” charge in the fourth quarter of this year, and reports that a 2008 trading gaffe has come back to haunt Citi.
Never even mind the fact that the company says the current quarter’s trading revenue is going to be down quite a bit.
All in all, it looks pretty bad.
So what’s C doing on a list of stocks to buy as 2015 becomes 2016? The long streak of weakness against a backdrop of occasional success/growth has quietly left shares as one of the market’s truly cheap stocks — the forward-looking P/E is a mere 9.1.
With the worst-case scenario already priced in — and more — even a modest economic rebound could send C higher.
Navient Corporation (NAVI)
Most investors probably haven’t even heard of Navient Corporation (NAVI) … even ones that have dealt with the company as a consumer. Navient performs a variety of middleman services for federal student lending.
More important to current and would-be investors, there’s good money in that business.
Those who know NAVI well, will know that the top line as well as the bottom line (though less consistently) have been slowly slumping, as enrollments in colleges have been falling and loan delinquencies are still on the rise.
And yet, for a speculator willing to take a swing on the chance all those trends have already seen their worst, this is one of those few cheap stocks that just might be worth a bit of a gamble. The forward-looking P/E is a paltry 6.1.
Terex (TEX)
The last couple of years have been tough ones for heavy machinery makers; Deere & Co. (DE) and Caterpillar (CAT) have just been battered, and their respective stocks have paid the price.
Terex (TEX), however, has largely proven to be an exception to that trend. Even so, Terex finally began to show cracks last quarter, missing earnings estimates and lowering its full-year expectations.
The $64,000 question is, was last quarter a fluke, or an omen?
Opinions vary, but there’s a good chance that Terex’s specialty — aerial platforms and cranes — may be more resilient than you think. After all, even with last quarter’s lull, sales have held up reasonably well over the past couple of years, and even to the extent Terex has hit a headwinds, savvy cost-cutting has allowed the organization to keep growing the bottom line.
In other words, it’s a well-managed outfit that has largely evaded the trouble that other, similar companies have been handed of late. Perhaps its limited reliance on overseas sales has helped TEX where it hurt others.
Whatever the case, with a trailing P/E of 9.5 and a forward-looking P/E of 9.52 TEX has earned a spot on a list of underestimated cheap stocks to buy for 2016.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
This article was originally published on InvestorPlace Media.
Plus:
The 6 Best Dividend Stocks to Buy in 2016
The 10 Best Vanguard Funds to Buy for 2016
The 7 Best ETFs to Buy 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.
|
And given that this side of the old Hewlett Packard company has now posted two quarters of year-over-year revenue growth (when stripping out the effects of currency volatility), it wouldn’t be wise to bet against it now … especially in light of the strengthened partnership with Microsoft (MSFT). Terex (TEX) The last couple of years have been tough ones for heavy machinery makers; Deere & Co. (DE) and Caterpillar (CAT) have just been battered, and their respective stocks have paid the price. By James Brumley, InvestorPlace Feature Writer With the end of the year upon us and a new calendar year approaching, it’s time to prune your portfolios of the dead weight and plant the seeds that will flourish in the coming year.
|
Although the presidential-hopeful wasn’t explicitly targeting Gilead Sciences, in light of the uproar over the high price of Gilead’s recently unveiled hepatitis C drugs Harvoni and Sovaldi (a full treatment with Sovaldi costs $84,000, and a full treatment of Harvoni costs almost $100,000), GILD investors were fearful any regulatory reforms would reach far and wide. By James Brumley, InvestorPlace Feature Writer With the end of the year upon us and a new calendar year approaching, it’s time to prune your portfolios of the dead weight and plant the seeds that will flourish in the coming year. And what better foot to start off the new year with than a couple of undervalued names that have lots of room to make forward progress before hitting any major valuation headwind?
|
Although the presidential-hopeful wasn’t explicitly targeting Gilead Sciences, in light of the uproar over the high price of Gilead’s recently unveiled hepatitis C drugs Harvoni and Sovaldi (a full treatment with Sovaldi costs $84,000, and a full treatment of Harvoni costs almost $100,000), GILD investors were fearful any regulatory reforms would reach far and wide. Pilgrim’s Pride (PPC) Between another avian flu breakout, rising operational costs, export restrictions and higher chicken prices in grocery stores despite lower wholesale prices, Pilgrim’s Pride (PPC) won’t be looking back on 2015 as a year to remember. Plus: The 6 Best Dividend Stocks to Buy in 2016 The 10 Best Vanguard Funds to Buy for 2016 The 7 Best ETFs to Buy 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.
|
Those numbers more than qualify Pilgrim’s Pride shares to join the ranks of the market’s cheap stocks at this time, but are they actually buy-worthy? By James Brumley, InvestorPlace Feature Writer With the end of the year upon us and a new calendar year approaching, it’s time to prune your portfolios of the dead weight and plant the seeds that will flourish in the coming year. And what better foot to start off the new year with than a couple of undervalued names that have lots of room to make forward progress before hitting any major valuation headwind?
|
568ad200-8faa-4289-98f7-4d351bd527ae
|
722711.0
|
2015-12-14 00:00:00 UTC
|
Will Joy Global (JOY) Disappoint Earnings Estimates in Q4?
|
DE
|
https://www.nasdaq.com/articles/will-joy-global-joy-disappoint-earnings-estimates-in-q4-2015-12-14
|
nan
|
nan
|
Joy Global Inc . JOY will release its fiscal fourth-quarter 2015 financial results before the market opens on Dec 16, 2015. In the last quarter, this mining equipment maker reported a negative earnings surprise of 10.0%. Let's see how things are shaping up for the company prior to this announcement.
Factors to Consider this Quarter
The highly competitive mining space and softness in demand are forcing miners to take a cautious approach on new projects. In addition, miners are temporarily shutting down mines, slowing the pace of mining activities and delaying expansion plans to cope with a weak recovery pace. These are likely to have a negative impact on mining equipment demand.
Joy Global depends on its thermal and metallurgical coal customers to generate a major portion of its revenues. The World Steel Association projects that the global steel demand will decrease by 1.7% to 1,513 Mt in 2015. This implies a lower-than-expected demand for met coal.
Adding to the woes, the U.S. Environmental Protection Agency has introduced its Clean Power Plan. The primary objective of this plan is to cut emissions from existing coal-fired power plants by 32% over the 2005 to 2030 time frame. This will not only have an adverse impact on coal miners but will also affect equipment makers.
Earnings Whispers
Our proven model shows that Joy Global is unlikely to beat on 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. This is not the case here, as shown below.
Zacks ESP : The company has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 42 cents.
Zacks Rank : Joy Global has a Zacks Rank #5 (Strong Sell), which lowers the predictive power of ESP. We particularly caution against Sell-rated stocks (Zacks Rank #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies worth considering as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Deere & Company DE has an earnings ESP of +1.45% and carries a Zacks Rank #3.
Reliance Steel & Aluminum Co. RS has an earnings ESP of +4.71% and carries a Zacks Rank #3.
Illinois Tool Works Inc. ITW has an earnings ESP of +0.83% and carries 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
RELIANCE STEEL (RS): Free Stock Analysis Report
ILL TOOL WORKS (ITW): Free Stock Analysis Report
JOY GLOBAL INC (JOY): 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.
|
Factors to Consider this Quarter The highly competitive mining space and softness in demand are forcing miners to take a cautious approach on new projects. Joy Global depends on its thermal and metallurgical coal customers to generate a major portion of its revenues. JOY will release its fiscal fourth-quarter 2015 financial results before the market opens on Dec 16, 2015.
|
Click to get this free report DEERE & CO (DE): Free Stock Analysis Report RELIANCE STEEL (RS): Free Stock Analysis Report ILL TOOL WORKS (ITW): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. JOY will release its fiscal fourth-quarter 2015 financial results before the market opens on Dec 16, 2015. Factors to Consider this Quarter The highly competitive mining space and softness in demand are forcing miners to take a cautious approach on new projects.
|
Click to get this free report DEERE & CO (DE): Free Stock Analysis Report RELIANCE STEEL (RS): Free Stock Analysis Report ILL TOOL WORKS (ITW): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. JOY will release its fiscal fourth-quarter 2015 financial results before the market opens on Dec 16, 2015. Factors to Consider this Quarter The highly competitive mining space and softness in demand are forcing miners to take a cautious approach on new projects.
|
JOY will release its fiscal fourth-quarter 2015 financial results before the market opens on Dec 16, 2015. Factors to Consider this Quarter The highly competitive mining space and softness in demand are forcing miners to take a cautious approach on new projects. In addition, miners are temporarily shutting down mines, slowing the pace of mining activities and delaying expansion plans to cope with a weak recovery pace.
|
e002205c-199e-4aed-94a7-d05a08149d30
|
722712.0
|
2015-12-11 00:00:00 UTC
|
Zacks Investment Ideas feature highlights: Deere, Nike, Union Pacific, Sherwin-Williams and Starbucks
|
DE
|
https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-deere-nike-union-pacific-sherwin-williams-and
|
nan
|
nan
|
For Immediate Release
Chicago, IL- December 11, 2015 - Today, Zacks Investment Ideas feature highlights Features: Deere ( DE ), Nike ( NKE ), Union Pacific Corporation ( UNP ), Sherwin-Williams Company ( SHW ) and Starbucks Corporation ( SBUX ).
3 Stocks to Hold for 20 Years
What if you fell asleep while out for a walk with your dog, and like Rip Van Winkle, awoke 20 years later to a whole new world?
After inquiring after friends and family, investors would then probably want to know, "how's the stock market doing?"
If you invest in individual stocks, it would be the ultimate buy and hold tale.
20 years without touching your stocks. 20 years of dividend accumulations. 20 years of growth. There would be no emotions in play.
How well would your stocks hold up if they went untouched in the stock market for the next 20 years?
Not all stocks are created equal. There are certainly some companies that you would NOT want to be in if you knew that you were going to hold for 20 years.
A long term hold is a unique situation.
Warren Buffett has been quoted as saying: "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value."
What criteria, in addition to rising earnings, should you look for if you're going to hold for decades?
3 Criteria for 20 Year Buy and Hold Investors
1. The Company Has a Moat
2. The Company is Rewarding Shareholders
3. The Company is Bigger Than Just One Person
1. A Moat
Long term investors look for companies with moats. A business moat is defined as a sustainable economic advantage that makes it difficult for rivals to enter the market or gain market share.
Many industrial companies have moats because they have expensive factories that must be used to make their product. For example, Deere ( DE ) has manufacturing facilities all over the world. It's expensive to build a factory to make agriculture equipment. Who else is going to enter that market? Not many people.
Additionally, you have to establish your brand as among the best in that industry. That can take years, even decades, to achieve.
Big start-up costs and brand strength give Deere advantages over new rivals.
An example of an industry without a moat are the burger chains. These seem to be sprouting up in just about every state and country with few barriers to entry. As long as you can get a loan and sign a lease on a location, you can compete in this space.
In 20 years, some of the burger chains will likely not be survivors given the level of competition.
2. Paying Cash Back to Shareholders
It says something when a company pays a dividend. While growth investors hate dividends because it usually indicates that growth at a company is slowing, it can also be a sign of consistent and solid management.
It's hard to pay a dividend year after year, even in hard times. Harder still are the "dividend aristocrats" which are the companies that raise their dividends every year and have been doing so for decades.
If you're holding for 20 years, you want to get a dividend payout. Even a 1% yield can make a difference in your return over that long of a period.
3. Don't Count on the Genius of One
While I'm a big fan of having a visionary CEO at the helm of a company, if you're thinking about owning a stock for 20 years, you might want to think twice about making a bet on one person.
Apple's shares soared under the guidance of Steve Jobs, but under Tim Cook? They have struggled in 2015, up just 4.8% this year.
Additionally, I'm not a fan of owning a company that makes big bets on the brand of one or two individuals. Nike ( NKE ) just signed LeBron James to a lifetime contract. Terms were not disclosed. He is the first athlete to sign such a deal.
Nike, of course, has the powerful Michael Jordan brand as well, which is still as strong as ever even though Jordan hasn't actually played in the NBA in over a decade.
But there is danger to a company in placing such a big bet on the brand of someone who is, really, outside of the company's control. Humans have foibles. And these athletes have their own outside brands. There is risk there.
I would prefer to own a company that is making a bet on its own product, instead of a human brand.
3 Stocks to Hold for 20 Years
After applying the criteria, there are a lot of companies that make the grade.
But the three I've chosen have one thing in common: they have a track record of steadily growing earnings over the course of several decades.
And they are, for the most part, pretty boring.
Boring is good if you're investing for the long term. These companies just go about building their businesses, year after year.
1. Union Pacific Corporation ( UNP )
A railroad? Right now?
The railroads have been in a tough spot in 2015 as a decline in coal shipments and the West Coast port strike put a damper on volumes and earnings. The polar vortex winters also didn't help.
Shares of Union Pacific recently hit a new 52-week low on continuing worries about the economic recovery, especially in manufacturing.
The new low has even persuaded insiders to buy. Just last week, a UNP director bought 50,000 shares for about $3.9 million. It was this director's first open market purchase since he joined the board in 2008.
Insiders can be greedy. They buy when shares are oversold because they think they're getting a deal and that they'll make money when the shares rebound.
The rails have suddenly gotten cheap. Union Pacific trades with a forward P/E of 13.3. That is the cheapest the stock has been on a forward basis since the dark times of the Great Recession in 2009 when its forward P/E was 8.6.
While earnings are expected to decline 1.7% this year, that is a rare event. In the last 10 years, the only other year that saw contraction was during the Great Recession. Analysts see earnings growth returning again in 2016, with earnings expected to rise nearly 8%.
The 3 Criteria:
1. If any industry has a moat, it's the railroads. Union Pacific also has the unique position of operating 6 gateways along the Mexican border, which has become a key trading partner.
Additionally, it owns 26% of Ferromex, Mexico's largest railroad, so it has further ties to the Mexican economy that no one entering the space would have.
2. Union Pacific has raised its dividend steadily since 1999. It also still paid the dividend, and never cut it, during the Great Recession. With the shares selling off, investors are getting a juicy yield right now of 2.8%.
3. There is no brand built on the personality of one individual at the railroads. The brand is based on shipping goods across North America and that is it. That is really all you need to know.
The railroads now ship nearly half of all US freight tons. They are the bedrock of the US economy.
2. The Sherwin-Williams Company ( SHW )
Sherwin-Williams has been churning out paint for over 150 years. There wouldn't seem to be much innovation left in that industry, but in October 2015, the company announced a paint breakthrough.
It had developed a new antibacterial paint called "Paint Shield" that killed 99.9% of bacteria. The possible uses for this product are huge, including in hospitals, day cares, schools, hotels and on cruise ships.
The paint and coating markets have been strong in recent years. Earnings have grown by the double digits every year since 2012. Analysts expect another 25% growth this year and 16% in 2016.
Shares aren't cheap, though. They trade with a forward P/E of 24.8. That's the most expensive the stock has been in the last 10 years. Investors might want to wait for a pullback to initiate a position.
The 3 Criteria:
1. There are only a handful of paint companies in North America and Sherwin-Williams is one of the largest. There are clearly barriers to entry. It takes big factories to mass produce paint.
2. Sherwin-Williams has paid a dividend since 1999 and did not cut it during the Great Recession. It's currently yielding about 1%.
3. There is no cult of personality with the Sherwin-Williams brand. The paint is well known in interior design circles but there is no person associated with the brand.
3. Starbucks Corporation ( SBUX )
Starbucks has been brewing coffee since 1971 and now has over 23,000 stores in its global empire. But it's not content to stop with just coffee.
It also owns the Teavana brand and has been pushing into the tea market. Food, beer and wine are also appearing regularly in Starbucks across North America as the company makes a play to being more than just a coffee shop.
After hitting some bumps in its global expansion during the Great Recession, it has produced double digit growth every year since 2010.
Shares have soared and aren't cheap. Starbucks has a forward P/E of 33 but shares have been priced higher. In the 2005 to 2007 period, they traded as high as 45x.
The 3 Criteria:
1. Starbucks sheer size gives it advantages. Starbucks is such a dominant name in the coffee market that it has dared to enter more competitive markets such as Colombia, where the Juan Valdez brand reigns king. It also has shown it can successfully compete outside the coffee market, with teas and non-coffee beverages making up more of its sales.
2. The company started paying a dividend in 2010. In that time, it has never cut and has only raised its payout. The dividend is currently yielding 1.3%.
3. Starbucks has a famous CEO in Howard Schultz. Doesn't that disqualify the company based on the criteria? I would argue it does not.
While his personality is a big driver of the company, especially his initiatives to hire more military veterans and to pay college tuition for employees, the Starbucks brand is bigger than any one individual. Starbucks can prosper even without Schultz at the helm.
The Zacks Rank: Should You Care?
The Zacks Rank is a fantastic short term recommendation system. But it's meant for 1 to 3 months as its based on changes to analyst estimates.
All three of these companies are Zacks Rank #3 (Hold) stocks.
While I recommend using the Rank as a guide for all stock picking, if you're considering a long term investment, the rank will play less of a factor.
Still, there is nothing wrong with a Hold rank. Earnings are expected to rise on all three next year.
Buy and Hold Is Difficult
Very few investors are able to buy a stock and hold it for decades. Warren Buffett is one of the few.
Most investors get too emotional with their stock investments. They can't turn off the news.
When a stock sell off happens, even if it's healthy for the stock market, many investors panic and sell even the best quality companies.
If you had bought these three stocks 20 years ago, your gains would be enormous.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today . Find out What is happening in the stock market today on zacks.com.
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
NIKE INC-B (NKE): Free Stock Analysis Report
UNION PAC CORP (UNP): Free Stock Analysis Report
SHERWIN WILLIAM (SHW): Free Stock Analysis Report
STARBUCKS CORP (SBUX): 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 railroads have been in a tough spot in 2015 as a decline in coal shipments and the West Coast port strike put a damper on volumes and earnings. For Immediate Release Chicago, IL- December 11, 2015 - Today, Zacks Investment Ideas feature highlights Features: Deere ( DE ), Nike ( NKE ), Union Pacific Corporation ( UNP ), Sherwin-Williams Company ( SHW ) and Starbucks Corporation ( SBUX ). 20 years of dividend accumulations.
|
For Immediate Release Chicago, IL- December 11, 2015 - Today, Zacks Investment Ideas feature highlights Features: Deere ( DE ), Nike ( NKE ), Union Pacific Corporation ( UNP ), Sherwin-Williams Company ( SHW ) and Starbucks Corporation ( SBUX ). A business moat is defined as a sustainable economic advantage that makes it difficult for rivals to enter the market or gain market share. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report SHERWIN WILLIAM (SHW): Free Stock Analysis Report STARBUCKS CORP (SBUX): Free Stock Analysis Report To read this article on Zacks.com click here.
|
3 Stocks to Hold for 20 Years After applying the criteria, there are a lot of companies that make the grade. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report SHERWIN WILLIAM (SHW): Free Stock Analysis Report STARBUCKS CORP (SBUX): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL- December 11, 2015 - Today, Zacks Investment Ideas feature highlights Features: Deere ( DE ), Nike ( NKE ), Union Pacific Corporation ( UNP ), Sherwin-Williams Company ( SHW ) and Starbucks Corporation ( SBUX ).
|
For Immediate Release Chicago, IL- December 11, 2015 - Today, Zacks Investment Ideas feature highlights Features: Deere ( DE ), Nike ( NKE ), Union Pacific Corporation ( UNP ), Sherwin-Williams Company ( SHW ) and Starbucks Corporation ( SBUX ). 20 years of dividend accumulations. What criteria, in addition to rising earnings, should you look for if you're going to hold for decades?
|
15c80d04-d583-46f0-90b8-6ac174aee490
|
722713.0
|
2015-12-09 00:00:00 UTC
|
3 Stocks to Hold for 20 Years
|
DE
|
https://www.nasdaq.com/articles/3-stocks-hold-20-years-2015-12-09
|
nan
|
nan
|
What if you fell asleep while out for a walk with your dog, and like Rip Van Winkle, awoke 20 years later to a whole new world?
After inquiring after friends and family, investors would then probably want to know, "how's the stock market doing?"
If you invest in individual stocks, it would be the ultimate buy and hold tale.
20 years without touching your stocks. 20 years of dividend accumulations. 20 years of growth. There would be no emotions in play.
How well would your stocks hold up if they went untouched in the stock market for the next 20 years?
Not all stocks are created equal. There are certainly some companies that you would NOT want to be in if you knew that you were going to hold for 20 years.
A long term hold is a unique situation.
Warren Buffett has been quoted as saying: "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value."
What criteria, in addition to rising earnings, should you look for if you're going to hold for decades?
3 Criteria for 20 Year Buy and Hold Investors
1. The Company Has a Moat
2. The Company is Rewarding Shareholders
3. The Company is Bigger Than Just One Person
1. A Moat
Long term investors look for companies with moats. A business moat is defined as a sustainable economic advantage that makes it difficult for rivals to enter the market or gain market share.
Many industrial companies have moats because they have expensive factories that must be used to make their product. For example, Deere ( DE ) has manufacturing facilities all over the world. It's expensive to build a factory to make agriculture equipment. Who else is going to enter that market? Not many people.
Additionally, you have to establish your brand as among the best in that industry. That can take years, even decades, to achieve.
Big start-up costs and brand strength give Deere advantages over new rivals.
An example of an industry without a moat are the burger chains. These seem to be sprouting up in just about every state and country with few barriers to entry. As long as you can get a loan and sign a lease on a location, you can compete in this space.
In 20 years, some of the burger chains will likely not be survivors given the level of competition.
2. Paying Cash Back to Shareholders
It says something when a company pays a dividend. While growth investors hate dividends because it usually indicates that growth at a company is slowing, it can also be a sign of consistent and solid management.
It's hard to pay a dividend year after year, even in hard times. Harder still are the "dividend aristocrats" which are the companies that raise their dividends every year and have been doing so for decades.
If you're holding for 20 years, you want to get a dividend payout. Even a 1% yield can make a difference in your return over that long of a period.
3. Don't Count on the Genius of One
While I'm a big fan of having a visionary CEO at the helm of a company, if you're thinking about owning a stock for 20 years, you might want to think twice about making a bet on one person.
Apple's shares soared under the guidance of Steve Jobs, but under Tim Cook? They have struggled in 2015, up just 4.8% this year.
Additionally, I'm not a fan of owning a company that makes big bets on the brand of one or two individuals. Nike ( NKE ) just signed LeBron James to a lifetime contract. Terms were not disclosed. He is the first athlete to sign such a deal.
Nike, of course, has the powerful Michael Jordan brand as well, which is still as strong as ever even though Jordan hasn't actually played in the NBA in over a decade.
But there is danger to a company in placing such a big bet on the brand of someone who is, really, outside of the company's control. Humans have foibles. And these athletes have their own outside brands. There is risk there.
I would prefer to own a company that is making a bet on its own product, instead of a human brand.
3 Stocks to Hold for 20 Years
After applying the criteria, there are a lot of companies that make the grade.
But the three I've chosen have one thing in common: they have a track record of steadily growing earnings over the course of several decades.
And they are, for the most part, pretty boring.
Boring is good if you're investing for the long term. These companies just go about building their businesses, year after year.
1. Union Pacific Corporation ( UNP )
A railroad? Right now?
The railroads have been in a tough spot in 2015 as a decline in coal shipments and the West Coast port strike put a damper on volumes and earnings. The polar vortex winters also didn't help.
Shares of Union Pacific recently hit a new 52-week low on continuing worries about the economic recovery, especially in manufacturing.
The new low has even persuaded insiders to buy. Just last week, a UNP director bought 50,000 shares for about $3.9 million. It was this director's first open market purchase since he joined the board in 2008.
Insiders can be greedy. They buy when shares are oversold because they think they're getting a deal and that they'll make money when the shares rebound.
The rails have suddenly gotten cheap. Union Pacific trades with a forward P/E of 13.3. That is the cheapest the stock has been on a forward basis since the dark times of the Great Recession in 2009 when its forward P/E was 8.6.
While earnings are expected to decline 1.7% this year, that is a rare event. In the last 10 years, the only other year that saw contraction was during the Great Recession. Analysts see earnings growth returning again in 2016, with earnings expected to rise nearly 8%.
The 3 Criteria:
1. If any industry has a moat, it's the railroads. Union Pacific also has the unique position of operating 6 gateways along the Mexican border, which has become a key trading partner.
Additionally, it owns 26% of Ferromex, Mexico's largest railroad, so it has further ties to the Mexican economy that no one entering the space would have.
2. Union Pacific has raised its dividend steadily since 1999. It also still paid the dividend, and never cut it, during the Great Recession. With the shares selling off, investors are getting a juicy yield right now of 2.8%.
3. There is no brand built on the personality of one individual at the railroads. The brand is based on shipping goods across North America and that is it. That is really all you need to know.
The railroads now ship nearly half of all US freight tons. They are the bedrock of the US economy.
2. The Sherwin-Williams Company ( SHW )
Sherwin-Williams has been churning out paint for over 150 years. There wouldn't seem to be much innovation left in that industry, but in October 2015, the company announced a paint breakthrough.
It had developed a new antibacterial paint called "Paint Shield" that killed 99.9% of bacteria. The possible uses for this product are huge, including in hospitals, day cares, schools, hotels and on cruise ships.
The paint and coating markets have been strong in recent years. Earnings have grown by the double digits every year since 2012. Analysts expect another 25% growth this year and 16% in 2016.
Shares aren't cheap, though. They trade with a forward P/E of 24.8. That's the most expensive the stock has been in the last 10 years. Investors might want to wait for a pullback to initiate a position.
The 3 Criteria:
1. There are only a handful of paint companies in North America and Sherwin-Williams is one of the largest. There are clearly barriers to entry. It takes big factories to mass produce paint.
2. Sherwin-Williams has paid a dividend since 1999 and did not cut it during the Great Recession. It's currently yielding about 1%.
3. There is no cult of personality with the Sherwin-Williams brand. The paint is well known in interior design circles but there is no person associated with the brand.
3. Starbucks Corporation ( SBUX )
Starbucks has been brewing coffee since 1971 and now has over 23,000 stores in its global empire. But it's not content to stop with just coffee.
It also owns the Teavana brand and has been pushing into the tea market. Food, beer and wine are also appearing regularly in Starbucks across North America as the company makes a play to being more than just a coffee shop.
After hitting some bumps in its global expansion during the Great Recession, it has produced double digit growth every year since 2010.
Shares have soared and aren't cheap. Starbucks has a forward P/E of 33 but shares have been priced higher. In the 2005 to 2007 period, they traded as high as 45x.
The 3 Criteria:
1. Starbucks sheer size gives it advantages. Starbucks is such a dominant name in the coffee market that it has dared to enter more competitive markets such as Colombia, where the Juan Valdez brand reigns king. It also has shown it can successfully compete outside the coffee market, with teas and non-coffee beverages making up more of its sales.
2. The company started paying a dividend in 2010. In that time, it has never cut and has only raised its payout. The dividend is currently yielding 1.3%.
3. Starbucks has a famous CEO in Howard Schultz. Doesn't that disqualify the company based on the criteria? I would argue it does not.
While his personality is a big driver of the company, especially his initiatives to hire more military veterans and to pay college tuition for employees, the Starbucks brand is bigger than any one individual. Starbucks can prosper even without Schultz at the helm.
The Zacks Rank: Should You Care?
The Zacks Rank is a fantastic short term recommendation system. But it's meant for 1 to 3 months as its based on changes to analyst estimates.
All three of these companies are Zacks Rank #3 (Hold) stocks.
While I recommend using the Rank as a guide for all stock picking, if you're considering a long term investment, the rank will play less of a factor.
Still, there is nothing wrong with a Hold rank. Earnings are expected to rise on all three next year.
Buy and Hold Is Difficult
Very few investors are able to buy a stock and hold it for decades. Warren Buffett is one of the few.
Most investors get too emotional with their stock investments. They can't turn off the news.
When a stock sell off happens, even if it's healthy for the stock market, many investors panic and sell even the best quality companies.
If you had bought these three stocks 20 years ago, your gains would be enormous.
Past results aren't a guarantee of future returns, of course.
But for those who can buy and hold for a long length of time, and ride out the ups and downs, some of the old tried-and-true names should certainly be on your radar.
In full disclosure, I currently own Starbucks in my personal portfolio. And yes, I am holding for the long term.
Want More of Our Best Recommendations?
Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential .
Learn More>>
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
UNION PAC CORP (UNP): Free Stock Analysis Report
SHERWIN WILLIAM (SHW): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis Report
NIKE INC-B (NKE): 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.
|
The railroads have been in a tough spot in 2015 as a decline in coal shipments and the West Coast port strike put a damper on volumes and earnings. 20 years of dividend accumulations. What criteria, in addition to rising earnings, should you look for if you're going to hold for decades?
|
A business moat is defined as a sustainable economic advantage that makes it difficult for rivals to enter the market or gain market share. Click to get this free report UNION PAC CORP (UNP): Free Stock Analysis Report SHERWIN WILLIAM (SHW): Free Stock Analysis Report STARBUCKS CORP (SBUX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. 20 years of dividend accumulations.
|
3 Stocks to Hold for 20 Years After applying the criteria, there are a lot of companies that make the grade. Click to get this free report UNION PAC CORP (UNP): Free Stock Analysis Report SHERWIN WILLIAM (SHW): Free Stock Analysis Report STARBUCKS CORP (SBUX): Free Stock Analysis Report NIKE INC-B (NKE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. 20 years of dividend accumulations.
|
20 years of dividend accumulations. What criteria, in addition to rising earnings, should you look for if you're going to hold for decades? The Company is Rewarding Shareholders 3.
|
afa9a8e7-150d-4c00-8afd-f8adaf4f53f1
|
722714.0
|
2015-12-09 00:00:00 UTC
|
5 Takeaways From Deere's Conference Call
|
DE
|
https://www.nasdaq.com/articles/5-takeaways-deeres-conference-call-2015-12-09
|
nan
|
nan
|
Deere & Company 's recent results beat analyst expectations, and the initial uptick in the stock price served notice that despite forecasts for another year of falling sales, Deere still has upside potential. In this context, let's look at five things management wants you to know from its fourth-quarter results.
DE EV to CFFO (TTM) data by YCharts .
Where next for Deere & Company?
All told, Deere is set for another difficult year, but it's far from being like 2008-2009. Moreover, given that U.S. farm receipts are forecast to be flat in the calendar year 2016, it's possible that Deere could see growing earnings again in 2017, and management appears confident in its pricing assumptions.
On the other hand, the company remains under pressure to reduce inventory, and the increases in leased equipment could hurt pricing in the future. In short, Deere is an attractive long-term stock, but not one to be bought by those worried about near-term risk.
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 5 Takeaways From Deere's Conference Call originally appeared on Fool.com.
Lee Samaha 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 - 2015 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.
|
Moreover, given that U.S. farm receipts are forecast to be flat in the calendar year 2016, it's possible that Deere could see growing earnings again in 2017, and management appears confident in its pricing assumptions. On the other hand, the company remains under pressure to reduce inventory, and the increases in leased equipment could hurt pricing in the future. Deere & Company 's recent results beat analyst expectations, and the initial uptick in the stock price served notice that despite forecasts for another year of falling sales, Deere still has upside potential.
|
Deere & Company 's recent results beat analyst expectations, and the initial uptick in the stock price served notice that despite forecasts for another year of falling sales, Deere still has upside potential. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. DE EV to CFFO (TTM) data by YCharts .
|
Deere & Company 's recent results beat analyst expectations, and the initial uptick in the stock price served notice that despite forecasts for another year of falling sales, Deere still has upside potential. Moreover, given that U.S. farm receipts are forecast to be flat in the calendar year 2016, it's possible that Deere could see growing earnings again in 2017, and management appears confident in its pricing assumptions. DE EV to CFFO (TTM) data by YCharts .
|
Where next for Deere & Company? We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Deere & Company 's recent results beat analyst expectations, and the initial uptick in the stock price served notice that despite forecasts for another year of falling sales, Deere still has upside potential.
|
8d5c072d-1990-4ae4-859e-a9580c9edafc
|
722715.0
|
2015-12-09 00:00:00 UTC
|
Greif (GEF) to Report Q4 Earnings; What's in the Cards?
|
DE
|
https://www.nasdaq.com/articles/greif-gef-to-report-q4-earnings-whats-in-the-cards-2015-12-09
|
nan
|
nan
|
Greif, Inc.GEF is slated to report fourth-quarter fiscal 2015 results before the opening bell on Dec 10, 2015. The company posted a negative earnings surprise of 9.09% in the last quarter, Greif has delivered an average positive surprise of 6.08% in the trailing four quarters.
Let's see how things are shaping up for this announcement.
Factors to Consider
Greif expects fiscal 2015 revenues to be lower year over year due to persistent currency volatility, weak global manufacturing environment, continued deflationary raw material costs as well as a stronger dollar. However, Greif increased its adjusted earnings per share guidance for fiscal 2015 to the band of $1.85 to $1.95 due to expected benefits from the execution of its transformation initiatives, including SG&A cost reduction actions.
In the fourth quarter, however, expected accrual of professional fees related to the SG&A reduction efforts and increased medical expense related to experience trends throughout the year will offset the benefits from these cost reduction actions.
Greif has been progressing with its strategic transformation plan that will allow it to better align resources with the needs of customers, improve returns on invested capital and better reward its shareholders. However, foreign currency volatility, lower oil prices , headwinds in Latin America, North America and Europe will impact Greif's results in 2015.
Earnings Whispers
Our proven model does not conclusively show that Greif is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below.
Zacks ESP: Greif's ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are at 49 cents.
Zacks Rank: Greif's Zacks Rank #3 when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #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
Alamo Group, Inc. ALG has an earnings ESP of +3.16% and a Zacks Rank #3.
Brady Corp. BRC has an earnings ESP of +4.55% and a Zacks Rank #1.
Deere & Company DE has an earnings ESP of +1.45% 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
ALAMO GROUP INC (ALG): Free Stock Analysis Report
GREIF INC (GEF): Free Stock Analysis Report
BRADY CORP CL A (BRC): 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.
|
Greif has been progressing with its strategic transformation plan that will allow it to better align resources with the needs of customers, improve returns on invested capital and better reward its shareholders. Earnings Whispers Our proven model does not conclusively show that Greif is likely to beat estimates this quarter. Greif, Inc.GEF is slated to report fourth-quarter fiscal 2015 results before the opening bell on Dec 10, 2015.
|
Factors to Consider Greif expects fiscal 2015 revenues to be lower year over year due to persistent currency volatility, weak global manufacturing environment, continued deflationary raw material costs as well as a stronger dollar. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report GREIF INC (GEF): Free Stock Analysis Report BRADY CORP CL A (BRC): Free Stock Analysis Report To read this article on Zacks.com click here. Greif, Inc.GEF is slated to report fourth-quarter fiscal 2015 results before the opening bell on Dec 10, 2015.
|
Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report GREIF INC (GEF): Free Stock Analysis Report BRADY CORP CL A (BRC): Free Stock Analysis Report To read this article on Zacks.com click here. Greif, Inc.GEF is slated to report fourth-quarter fiscal 2015 results before the opening bell on Dec 10, 2015. The company posted a negative earnings surprise of 9.09% in the last quarter, Greif has delivered an average positive surprise of 6.08% in the trailing four quarters.
|
Factors to Consider Greif expects fiscal 2015 revenues to be lower year over year due to persistent currency volatility, weak global manufacturing environment, continued deflationary raw material costs as well as a stronger dollar. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report GREIF INC (GEF): Free Stock Analysis Report BRADY CORP CL A (BRC): Free Stock Analysis Report To read this article on Zacks.com click here. Greif, Inc.GEF is slated to report fourth-quarter fiscal 2015 results before the opening bell on Dec 10, 2015.
|
89552a5a-33b7-480a-838b-ebe51f1af7e7
|
722716.0
|
2015-12-06 00:00:00 UTC
|
Were Deere & Company's Results Good Enough?
|
DE
|
https://www.nasdaq.com/articles/were-deere-companys-results-good-enough-2015-12-06
|
nan
|
nan
|
Deere & Company 's recent results were warmly received by a stock market that's hoping the company can engineer a turnaround in fiscal year 2016. However, the earnings beat was more about cost cutting than any improvement in the agriculture machinery market. In reality, Deere still faces declining end markets in 2016. On a brighter note, the stock gives you upside exposure to any increase in crop prices, and for that reason alone it's attractive within a balanced portfolio. Let's look at what you need to know before buying or selling a position.
Still bad, but better
It's hard to get too excited about a company that just reported a 25% drop in fourth-quarter net sales and a 20% fall in full-year 2015 sales compared with the same periods last year. On the other hand, the nearly 39% decline in attributable net income was better than expected. In the third quarter, management had reduced its full-year attributable net income forecast to $1.8 billion from $1.9 billion previously. The good news is, the figure came in at $1.94 billion -- a substantial beat.
However, don't get too excited, because the better-than-expected net-income figure was largely to do with a more favorable effective tax rate -- 14% in the fourth quarter, where management previously forecast 34%-36% for the rest of the year. Moreover, selling, general, and administrative expenses declined 13% in the fourth quarter, where management had previously forecast an 11% drop -- the difference is around $50 million.
In addition, full-year cash flow from operations came in at $3.1 billion, not bad but still below the $3.2 billion estimate from the third-quarter presentations. Turning to 2016 guidance:
First-quarter net sales to decline 11%.
Full-year net sales to decline 7%.
Full-year net income of $1.4 billion implies a 28% reduction from the full 2015.
In short, it's going to get worse before it gets better, and the results were merely a case of conditions that weren't quite as bad as feared in the fourth quarter.
Why the stock is attractive
Of course, much of this is hardly surprising to investors, and the best case for buying the stock is really made on the following considerations:
Deere's earnings and cash flow could be set to trough in 2016 at a much higher level than in the previous recession.
The stock has potential for upside surprise from an increase in crop prices, often caused by factors such as weather and conflict.
In support of the first point, Deere's forecast for $2.6 billion in cash flow from operations represents a significant improvement on the $1.4 billion achieved in the previous trough in 2009. Moreover, unless we have another global financial recession, it's unlikely that farmers will have the same difficulty obtaining credit as they did in 2009.
Turning to potential upside, the company's forecast for U.S. farm cash receipts to be flat in 2016 implies continuing tough conditions. Deere's management lowered its forecast for key crop prices in 2015/2016. The U.S. corn farm price is expected to be $3.65 in 2015, wheat at $5, and soybeans at $8.90. Here's what Deere's forecasts look like at current prices. All prices in U.S. dollars per bushel:
US Corn Farm Price Received data by YCharts
On current trends, conditions aren't getting any better, but investors need to recall that growing conditions have been exceptional in the past few years -- there is no guarantee that they'll be the same next year. In other words, Deere could see upside from any positive surprise in crop prices.
Why it isn't
That said, risk is rising with the stock. The chart below shows Deere's current inventory divided by the next quarter's sales.The ratio has gone higher throughout 2015 when compared with previous years -- an indication that Deere is having difficulty clearing inventory.
AUTHOR'S ANALYSIS. Q4 2015 FIGURE USES ANALYST ESTIMATES FOR Q1 2016 SALES
In addition, Deere's equipment on operating leases has significantly increased in the past few years, even while sales have deteriorated. This situation has created a scenario whereby a glut of used equipment could build up and put pressure on used and new machinery prices.
The takeaway
Deere's results were better than expected, and the company has upside potential from the possibility of higher crop prices. Moreover, the company's projected earnings and cash flow in 2016 compare favorably with the previous trough.
On the other hand, Deere could have issues with inventory and equipment prices in 2016. As attractive as the stock is, I think if you want to make a play on higher crop prices, then it's better to make a direct investment through an ETF or similar rather than buy Deere stock right now.
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 Were Deere & Company's Results Good Enough? originally appeared on Fool.com.
Lee Samaha 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 - 2015 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.
|
Moreover, selling, general, and administrative expenses declined 13% in the fourth quarter, where management had previously forecast an 11% drop -- the difference is around $50 million. Turning to potential upside, the company's forecast for U.S. farm cash receipts to be flat in 2016 implies continuing tough conditions. Deere & Company 's recent results were warmly received by a stock market that's hoping the company can engineer a turnaround in fiscal year 2016.
|
In support of the first point, Deere's forecast for $2.6 billion in cash flow from operations represents a significant improvement on the $1.4 billion achieved in the previous trough in 2009. Deere & Company 's recent results were warmly received by a stock market that's hoping the company can engineer a turnaround in fiscal year 2016. In reality, Deere still faces declining end markets in 2016.
|
Why the stock is attractive Of course, much of this is hardly surprising to investors, and the best case for buying the stock is really made on the following considerations: Deere's earnings and cash flow could be set to trough in 2016 at a much higher level than in the previous recession. As attractive as the stock is, I think if you want to make a play on higher crop prices, then it's better to make a direct investment through an ETF or similar rather than buy Deere stock right now. Deere & Company 's recent results were warmly received by a stock market that's hoping the company can engineer a turnaround in fiscal year 2016.
|
Why the stock is attractive Of course, much of this is hardly surprising to investors, and the best case for buying the stock is really made on the following considerations: Deere's earnings and cash flow could be set to trough in 2016 at a much higher level than in the previous recession. In other words, Deere could see upside from any positive surprise in crop prices. The takeaway Deere's results were better than expected, and the company has upside potential from the possibility of higher crop prices.
|
edc6915f-48d2-4385-b82e-faa1af483852
|
722717.0
|
2015-12-03 00:00:00 UTC
|
3 Ag Stocks to Buy for Decades of Growth
|
DE
|
https://www.nasdaq.com/articles/3-ag-stocks-buy-decades-growth-2015-12-03
|
nan
|
nan
|
By Aaron Levitt, InvestorPlace Contributor
There is no easy way to say this, but the commodities complex is an absolute mess. Prices for pretty much every natural resource — from coal to copper — have spent the last year basically falling through the floor.
Thanks to lower demand, economic struggles in China and high supplies, most commodities investments have been absolute lemons.
But there is one statistic that may possible turn investor’s attention to the beaten down sector: 9.6 billion. That’s the number of people that the U.N. estimates will be on this planet by the time the calendar rolls over to 2050.
PLUS: 7 Big Tech Stocks You Should Jump Into NOW
And while that sort of huge population speaks volumes for all natural resource demand, it really speaks the loudest when it comes to agriculture. Feeding that immense population is going to take a lot of spending, technological know-how and hard work. The UN’s Food & Agriculture Organization (FAO) estimate that food production will need to rise about 70% over the next 40 years.
This is going to send a lot of profits back to the various agricultural companies, and could make them the stocks to buy for the next few decades of growth. Ignoring the short-term pain in the sector and using the current downturn could be the smartest thing for long-term investors.
With all that said, here are the 3 agricultue stocks to buy for the long haul.
Potash Corporation of Saskatchewan (POT)
Natural monopolies make for great stocks to buy, and one of the best is Potash Corporation of Saskatchewan (POT).
Unlike other fertilizer varieties, potash comes from the ground and is mined, rather than being created with chemicals. POT happens to own some of the largest potash mines in the world — five located in Saskatchewan and one mine in New Brunswick. Those mines, which the Canadian Government considers “strategic,” have helped POT become the world’s leading potash producer.
Potash Corp. is basically responsible for about 20% of the planet’s capacity of potash fertilizer. That gives it huge pricing and earnings power, as does its majority ownership of fertilizer cartel Canpotex.
But POT isn’t a one-trick pony, it also holds an array of nitrogen and phosphate assets as well. This makes it the stock to buy to load-up on long term fertilizer demand
In the short term, POT has suffered due to a couple of issues. One is lower potash demand. The other is a failed buy-out attempt for Germany’s K+S (KPLUY). Both have depressed shares and given POT stock a juicy 7.62% dividend yield.
But the long term is still rosy for Potash Corp., and now is the best time to snag shares of the fertilizer kingpin.
Archer Daniels Midland Company (ADM)
After you grow it, you need to do something with it. And that’s why Archer Daniels Midland (ADM) is one of the best stocks to buy in the agriculture space.
The firm is one of the largest agricultural processors, meaning its takes raw corn, sugar or whatever and turns it end products for use as food, ingredients or animal feed. Corn becomes corn syrup, ethanol, livestock pellets or whatever.
The key for ADM comes its huge size and scope. The company’s global value chain spans six continents, 460 crop procurement locations, 300 ingredient manufacturing facilities and the largest logistics system for crops in the world. Like previously mentioned POT, that’s a monopoly that can’t be easily replicated by many other rivals — not even MGP Ingredients (MGPI) — providing ADM with a large competitive advantage.
And now is a great time to pounce on shares of ADM.
The problem is that ADM’s end products are very dependent on crop prices, which are currently in the toilet. But lower costs have helped ADM realized better margins recently. And free cash flows remain robust. With ADM stock at fresh lows and sporting a 3% yield, it’s tough to imagine a better entry point.
John Deere (DE)
John Deere (DE) is certainly living up to its “Nothing runs like a Deere” tagline. In spite of the recent downturn in agriculture, DE is firing on all cylinders. DE has proven to be one of the best stocks to buy for long-term agriculture demand.
To be fair, DE’s latest sales numbers were a big disappointment. Lower crop prices make farmers less likely to buy new equipment, and lower oil and other natural resources prices have hurt the construction side of its business. In theory, this should give investors pause. But when it comes to the bottom line, Deere raked in the green. DE actually reported its sixth-highest earnings performance ever for a full year.
The key was a combination of cost controls and innovation. Like many firms, DE has been able to reduce its raw material, labor and other costs to help improve margins during the current agricultural downturn.
Secondly, DE isn’t selling your grandfather’s tractor anymore. Today’s tractors are basically brains with a plow, holding water and soil sensors, automatic driving systems and a host of other tech. They cost more, but farmers are willing to pay for greater savings down the road. DE can sell fewer tractors, but still keep revenues relatively high.
For investors, DE’s P/E of 14 and 3% yield makes it one of the best AG stocks to buy today.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.
This article was originally published on InvestorPlace Media.
Plus:
3 Best Vanguard Funds to Dive Into Growth Stocks
2 Ways Facebook Stock Is Improving Engagement
Eat Up! 3 Restaurant Stocks to Buy 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.
|
Thanks to lower demand, economic struggles in China and high supplies, most commodities investments have been absolute lemons. PLUS: 7 Big Tech Stocks You Should Jump Into NOW And while that sort of huge population speaks volumes for all natural resource demand, it really speaks the loudest when it comes to agriculture. This is going to send a lot of profits back to the various agricultural companies, and could make them the stocks to buy for the next few decades of growth.
|
John Deere (DE) John Deere (DE) is certainly living up to its “Nothing runs like a Deere” tagline. Lower crop prices make farmers less likely to buy new equipment, and lower oil and other natural resources prices have hurt the construction side of its business. Thanks to lower demand, economic struggles in China and high supplies, most commodities investments have been absolute lemons.
|
DE has proven to be one of the best stocks to buy for long-term agriculture demand. For investors, DE’s P/E of 14 and 3% yield makes it one of the best AG stocks to buy today. Thanks to lower demand, economic struggles in China and high supplies, most commodities investments have been absolute lemons.
|
One is lower potash demand. DE has proven to be one of the best stocks to buy for long-term agriculture demand. For investors, DE’s P/E of 14 and 3% yield makes it one of the best AG stocks to buy today.
|
2cb2773d-fd02-46a7-b6de-e7d61b31ebe4
|
722718.0
|
2015-12-02 00:00:00 UTC
|
Daily Dividend Report: SLG, VGR, DE, DVN, HOG, SPLS, IEX, RRC, KRG
|
DE
|
https://www.nasdaq.com/articles/daily-dividend-report-slg-vgr-de-dvn-hog-spls-iex-rrc-krg-2015-12-02
|
nan
|
nan
|
SL Green Realty ( SLG ) increased the Company's quarterly dividend on its common stock and OP units by 20%, resulting in a new annual dividend of $2.88 per share. In connection therewith, the board of directors declared the fourth quarter dividend of $0.72 per share of common stock. The dividend is payable on January 15, 2016 to shareholders of record at the close of business on January 4, 2016.
Vector Group ( VGR ) has declared a regular quarterly cash dividend on its common stock of $0.40 per share. The quarterly cash dividend will be payable on December 29, 2015 to holders of record as of December 15, 2015.
The Deere & Company ( DE ) Board of Directors declared a regular quarterly dividend of $.60 per share on common stock, payable February 1, 2016, to stockholders of record on December 31, 2015.
Devon Energy ( DVN ) declared a quarterly cash dividend on Devon's common stock for the first quarter of 2016. The dividend is payable on March 31, 2016, at a rate of $0.24 per share based on a record date of March 15, 2016.
Harley-Davidson ( HOG ) has approved a cash dividend of $0.31 per share for the fourth quarter of 2015. The dividend is payable Dec. 28, 2015, to the holders of record of the Company's common stock on Dec. 11, 2015.
Staples (SPLS) has declared a quarterly cash dividend on Staples, Inc. common stock of $0.12 per share. The dividend is payable on January 14, 2016, to shareholders of record on December 23, 2015.
IDEX (IEX) has approved a regular quarterly cash dividend of $0.32 per common share. The next dividend will be paid January 29th, 2016 to shareholders of record as of January 15th, 2016.
Range Resources (RRC) declared a quarterly cash dividend on its common stock for the fourth quarter. A dividend of $0.04 per common share is payable on December 31, 2015 to stockholders of record at the close of business on December 15, 2015.
Kite Realty Group Trust (KRG) declared a quarterly cash distribution of $0.2725 per common share for the quarter ended December 31, 2015, to shareholders of record as of January 6, 2016. This distribution will be paid on or about January 13, 2016.
VIDEO: Daily Dividend Report: SLG, VGR, DE, DVN, HOG, SPLS, IEX, RRC, KRG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In connection therewith, the board of directors declared the fourth quarter dividend of $0.72 per share of common stock. Vector Group ( VGR ) has declared a regular quarterly cash dividend on its common stock of $0.40 per share. The Deere & Company ( DE ) Board of Directors declared a regular quarterly dividend of $.60 per share on common stock, payable February 1, 2016, to stockholders of record on December 31, 2015.
|
The Deere & Company ( DE ) Board of Directors declared a regular quarterly dividend of $.60 per share on common stock, payable February 1, 2016, to stockholders of record on December 31, 2015. Kite Realty Group Trust (KRG) declared a quarterly cash distribution of $0.2725 per common share for the quarter ended December 31, 2015, to shareholders of record as of January 6, 2016. VIDEO: Daily Dividend Report: SLG, VGR, DE, DVN, HOG, SPLS, IEX, RRC, KRG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Deere & Company ( DE ) Board of Directors declared a regular quarterly dividend of $.60 per share on common stock, payable February 1, 2016, to stockholders of record on December 31, 2015. Range Resources (RRC) declared a quarterly cash dividend on its common stock for the fourth quarter. Kite Realty Group Trust (KRG) declared a quarterly cash distribution of $0.2725 per common share for the quarter ended December 31, 2015, to shareholders of record as of January 6, 2016.
|
Vector Group ( VGR ) has declared a regular quarterly cash dividend on its common stock of $0.40 per share. Range Resources (RRC) declared a quarterly cash dividend on its common stock for the fourth quarter. Kite Realty Group Trust (KRG) declared a quarterly cash distribution of $0.2725 per common share for the quarter ended December 31, 2015, to shareholders of record as of January 6, 2016.
|
209d90c0-ef10-4e29-9f47-d34dacf8d291
|
722719.0
|
2015-11-30 00:00:00 UTC
|
Deere to Layoff Over 200 Employees
|
DE
|
https://www.nasdaq.com/articles/deere-layoff-over-200-employees-2015-11-30
|
nan
|
nan
|
One of America's most recognizable agricultural equipment companies, Deere & Company ( DE ), will layoff roughly 220 workers from its Seeding and Cylinder operation, according to CBSNews.com . The article cites the layoffs are a result of a sales slump in agricultural machinery.
The Moline, Illinois based company said Monday that the layoffs, effective Feb. 15, are not like past seasonal layoffs. These specific job cuts have no specific call-back date for workers.
Deere employs about 60,000 people globally and 29,000 in the United States and Canada per CBSNews.com .
"Commodity prices have declined over the past three years, leading to weaker sales of farming machinery" states the previously citied article.
Sales of Deere's agriculture equipment, which include tractors, fell 25% in its most recent quarter.
With that being said, the company did outperform our earnings estimate by 45.95%.
Deere & Company currently has a Zacks Rank #3 (Hold).
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.
|
"Commodity prices have declined over the past three years, leading to weaker sales of farming machinery" states the previously citied article. Sales of Deere's agriculture equipment, which include tractors, fell 25% in its most recent quarter. One of America's most recognizable agricultural equipment companies, Deere & Company ( DE ), will layoff roughly 220 workers from its Seeding and Cylinder operation, according to CBSNews.com .
|
One of America's most recognizable agricultural equipment companies, Deere & Company ( DE ), will layoff roughly 220 workers from its Seeding and Cylinder operation, according to CBSNews.com . Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere employs about 60,000 people globally and 29,000 in the United States and Canada per CBSNews.com .
|
One of America's most recognizable agricultural equipment companies, Deere & Company ( DE ), will layoff roughly 220 workers from its Seeding and Cylinder operation, according to CBSNews.com . Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere employs about 60,000 people globally and 29,000 in the United States and Canada per CBSNews.com .
|
One of America's most recognizable agricultural equipment companies, Deere & Company ( DE ), will layoff roughly 220 workers from its Seeding and Cylinder operation, according to CBSNews.com . Deere employs about 60,000 people globally and 29,000 in the United States and Canada per CBSNews.com . "Commodity prices have declined over the past three years, leading to weaker sales of farming machinery" states the previously citied article.
|
f3d307c6-d46e-449d-978e-1e46231c595d
|
722720.0
|
2015-11-28 00:00:00 UTC
|
How Boeing, Deere, and Home Depot Benefit From the Wealth Effect
|
DE
|
https://www.nasdaq.com/articles/how-boeing-deere-and-home-depot-benefit-wealth-effect-2015-11-28
|
nan
|
nan
|
Have you ever wondered how you can make money from behavioral finance? It's a much-discussed topic that often leaves investors floundering for something tangible to invest in. Well, wonder no further, because I have three examples of stocks whose prospects are best understood using a simple understanding of the so-called wealth effect. So let's look at why Boeing , Deere & Company , and The Home Depot are interesting for behavioral-finance enthusiasts.
Wealth effect
The wealth effect is a concept from behavioral economics, which argues that a change in perceived wealth will cause a change in spending habits. Here is how the principle plays out in each company:
Boeing's commercial airplane orders correlate with airline profitability.
Deere's agricultural machinery sales depend on farmers' income.
Home Depot's retail sales depend on house price increases.
To be clear, none of these relationships are perfectly correlated. For example, Boeing's order book will also be affected by the timing of delivery of new planes, farmers might not have access to financing to buy machinery, or housing turnover, another determinant of Home Depot's demand, could slump even while house prices rise.
Nevertheless, there is strong evidence to suggest that all three companies' managements believe those bullet points hold. Here is Boeing's former CEO, Jim McNerney, speaking on anearnings callin April:
"As I mentioned on last quarter's call, historically airplane orders are highly correlated to airline profitability, and lower oil prices have not fundamentally changed our customers' view on fleet planning or their commitment to existing delivery schedules."
Turning to Deere, the first thing its management references in its earnings reports is usually U.S. farmers' cash income.
Meanwhile, here's Home Depot CEO Craig Menear on the company's recentearnings call "Turning to the macro environment, while 2015 consensus U.S. GDP growth projections have moderated, we continue to see positive signs in the housing data, with home-price appreciation and housing turnover being key drivers of growth for our business. "
So what?
Readers can be forgiven for thinking that much of this is obvious, and hardly something you can make money with. As with many aspects of investing, everything is "20-20" in hindsight.
For example, earlier in the year, analysts questioned whether Boeing's orders would disappoint in 2015 because lower oil prices caused a fall in replacement demand for inefficient airplanes. However, a recent Reuters article quotes Boeing's sales chief, John Wojick as saying, "We are seeing strong growth in many regions of the world, which definitely offsets some of the lack of replacement demand, because with lower fuel prices there is interest in continuing to fly some of the older airplanes a little while longer."
Indeed, back in June, the International Air Transport Association forecast that net post-tax profits for the worldwide airline industry would be $29.3 billion in 2015, from $16.4 billion in 2014 and $10.6 billion in 2013 -- indicating that all is well for Boeing.
Similarly, Home Depot's prospects were put into question following a slowing of growth in the U.S. economy and a mixed reporting season for the retail sector. However, the recent results saw the company raise sales guidance for the third quarter in a row this year. A look at existing home sales and home prices tells you the rest of the story.
US Existing Home Sales data by YCharts
On the other hand, Deere continues to see weakness in farmers' income, with management forecasting a 7% drop in farmers' cash receipts in 2015. In addition, cash receipts for 2016 are expected to be "down slightly" -- not good news for Deere's outlook in 2016.
The following chart tells you all you need to know about each company's year so far.
DE data by YCharts
The takeaway
In conclusion, the wealth effect is real and has very real affects on the three companies discussed above. Looking ahead, Deere investors will be hoping that crop prices increase to help out farmers' incomes, but I have some near-term concerns about inventory and used-equipment prices. Boeing's prospects look good, but it's unclear if a slowdown in emerging markets will feed through into reduced profitability with Asian airlines -- key buyers for Boeing's planes. Of the three, Home Depot looks to be the most interesting. As long as the U.S. economy, and therefore housing, doesn't collapse it will likely continue to thrive. Invest accordingly.
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 How Boeing, Deere, and Home Depot Benefit From the Wealth Effect originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool recommends Home Depot. 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 - 2015 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.
|
Here is Boeing's former CEO, Jim McNerney, speaking on anearnings callin April: "As I mentioned on last quarter's call, historically airplane orders are highly correlated to airline profitability, and lower oil prices have not fundamentally changed our customers' view on fleet planning or their commitment to existing delivery schedules." For example, earlier in the year, analysts questioned whether Boeing's orders would disappoint in 2015 because lower oil prices caused a fall in replacement demand for inefficient airplanes. However, a recent Reuters article quotes Boeing's sales chief, John Wojick as saying, "We are seeing strong growth in many regions of the world, which definitely offsets some of the lack of replacement demand, because with lower fuel prices there is interest in continuing to fly some of the older airplanes a little while longer."
|
Here is how the principle plays out in each company: Boeing's commercial airplane orders correlate with airline profitability. Home Depot's retail sales depend on house price increases. Here is Boeing's former CEO, Jim McNerney, speaking on anearnings callin April: "As I mentioned on last quarter's call, historically airplane orders are highly correlated to airline profitability, and lower oil prices have not fundamentally changed our customers' view on fleet planning or their commitment to existing delivery schedules."
|
For example, Boeing's order book will also be affected by the timing of delivery of new planes, farmers might not have access to financing to buy machinery, or housing turnover, another determinant of Home Depot's demand, could slump even while house prices rise. Here is Boeing's former CEO, Jim McNerney, speaking on anearnings callin April: "As I mentioned on last quarter's call, historically airplane orders are highly correlated to airline profitability, and lower oil prices have not fundamentally changed our customers' view on fleet planning or their commitment to existing delivery schedules." Meanwhile, here's Home Depot CEO Craig Menear on the company's recentearnings call "Turning to the macro environment, while 2015 consensus U.S. GDP growth projections have moderated, we continue to see positive signs in the housing data, with home-price appreciation and housing turnover being key drivers of growth for our business. "
|
Here is how the principle plays out in each company: Boeing's commercial airplane orders correlate with airline profitability. Home Depot's retail sales depend on house price increases. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
|
25b1b425-3f5c-4fe8-94a3-be1103b9c087
|
722721.0
|
2015-11-27 00:00:00 UTC
|
Stock Market News for November 27, 2015
|
DE
|
https://www.nasdaq.com/articles/stock-market-news-for-november-27-2015-2015-11-27
|
nan
|
nan
|
Most of the major benchmarks remained almost flat amid a flurry of economic data on Wednesday, the last full trading day of the week. Meanwhile, slump in HP's shares following dismal earnings results had a negative impact on investor sentiment. While the trading volume was light on Wednesday, the Dow posted its narrowest trading range of 53 points of 2015. Markets remained closed yesterday due to Thanksgiving and will remain open till 1 PM ET today.
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) rose 0.01% to close at 17,813.39. The tech-laden Nasdaq Composite Index closed at 5,116.14, rising 0.3%. However, the Standard & Poor's 500 (S&P 500) lost 0.01% to close at 2,088.87. The fear-gauge CBOE Volatility Index (VIX) declined 4.7% to settle at 15.19. A total of around 5.2 billion shares were traded on Wednesday, significantly lower than the last 20-session average of 7.19 billion. Advancers outpaced declining stocks on the NYSE. For 59% stocks that advanced, 37% declined.
A chunk of economic data had significant impact on markets on Wednesday. The U.S. Department of Commerce reported that new orders for manufactured durable goods rose by $6.9 billion or 3% in October to $239 billion, significantly beating the consensus estimate of 1.6% rise. Increase in demand for large commercial airplanes emerged as the main reason behind October's gain. It was preceded by a 0.8% decline in September.
Moreover, the Labor Department reported that jobless claims in the week ending Nov 21 declined by 12,000 from previous week to 260,000. It was also lower than the consensus estimate of 271,000. According to the Commerce Department, personal income rose $68.1 billion or 0.4% in October, in line with the consensus estimate. It was higher than September's increase of 0.2%. These strong data added to rate hike possibility next month.
However, the personal consumption expenditure price index (PCE) - an important indicator of inflation rose only 0.1% in October, same as September's increase. Core PCE remained flat last month, in contrast to the consensus estimate of 0.1% gain. Though new home sales surged 10.7% from previous month to 495,000 in October, it was slightly below the consensus estimate of 498,000. Meanwhile, final reading of consumer sentiment index released by University of Michigan came in at 91.3 in November, lower than the preliminary reading of 93.1. It was also lower than the consensus estimate of 93. However, it was higher than the October's reading of 90.
Separately, shares of HP Inc. ( HPQ ) - formerly a part of Hewlett-Packard Company - plunged 13.7% after reporting fiscal non-GAAP fourth-quarter earnings of 93 cents, missing the Zacks Consensus Estimate of 96 cents. It was also lower than the year-ago quarter's $1.06. The company reported revenues of $25.7 billion, down 9.5% year over year, primarily due to unfavorable foreign currency exchange rates. Also, HP expects its non-GAAP earnings per share for first-quarter fiscal 2016 between 33 cents and 38 cents, while the Zacks Consensus Estimate is pegged at 43 cents. It was the worst performer among the S&P 500 companies on Wednesday.
However, shares of Hewlett Packard Enterprise Company ( HPE ) - another former segment of Hewlett-Packard - rose 3.1% following the earnings release. Hewlett-Packard Company successfully split itself into two standalone companies - HP and Hewlett-Packard Enterprise - effective Nov 1.
Meanwhile, share of Deere & Company ( DE ) gained 4.8% after announcing fiscal fourth quarter earnings of $1.08, surpassing the Zacks Consensus Estimate of 74 cents. However, earnings figure slumped 41% form the year ago level. Also, net sales plunged 26% year-on-year to $5.93 billion in the quarter, missing the Zacks Consensus Estimate of $6.13 billion.
The Health Care Select Sector SPDR ETF (XLV) that gained more than 0.5% was the best performing sector among the S&P 500 sectors. Key stocks from the sector including Allergan plc ( AGN ), Pfizer Inc. ( PFE ), Gilead Sciences Inc. ( GILD ), Biogen Inc. ( BIIB ) and Amgen Inc. ( AMGN ) gained 2.8%, 2.8%, 1.1%, 1.1% and 0.7%, respectively.
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
HP INC (HPQ): Free Stock Analysis Report
HEWLETT PKD ENT (HPE): Get Free Report
DEERE & CO (DE): Free Stock Analysis Report
ALLERGAN PLC (AGN): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
BIOGEN INC (BIIB): Free Stock Analysis Report
AMGEN INC (AMGN): 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.
|
Meanwhile, share of Deere & Company ( DE ) gained 4.8% after announcing fiscal fourth quarter earnings of $1.08, surpassing the Zacks Consensus Estimate of 74 cents. The tech-laden Nasdaq Composite Index closed at 5,116.14, rising 0.3%. The fear-gauge CBOE Volatility Index (VIX) declined 4.7% to settle at 15.19.
|
Click to get this free report HP INC (HPQ): Free Stock Analysis Report HEWLETT PKD ENT (HPE): Get Free Report DEERE & CO (DE): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The tech-laden Nasdaq Composite Index closed at 5,116.14, rising 0.3%. The fear-gauge CBOE Volatility Index (VIX) declined 4.7% to settle at 15.19.
|
The U.S. Department of Commerce reported that new orders for manufactured durable goods rose by $6.9 billion or 3% in October to $239 billion, significantly beating the consensus estimate of 1.6% rise. Click to get this free report HP INC (HPQ): Free Stock Analysis Report HEWLETT PKD ENT (HPE): Get Free Report DEERE & CO (DE): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The tech-laden Nasdaq Composite Index closed at 5,116.14, rising 0.3%.
|
A total of around 5.2 billion shares were traded on Wednesday, significantly lower than the last 20-session average of 7.19 billion. The tech-laden Nasdaq Composite Index closed at 5,116.14, rising 0.3%. The fear-gauge CBOE Volatility Index (VIX) declined 4.7% to settle at 15.19.
|
aca855b0-4d82-4b76-8827-2a833611023e
|
722722.0
|
2015-11-25 00:00:00 UTC
|
Dow Jones Industrial Average Adds 46 Points Ahead of Thanksgiving Holiday
|
DE
|
https://www.nasdaq.com/articles/dow-jones-industrial-average-adds-46-points-ahead-thanksgiving-holiday-2015-11-25
|
nan
|
nan
|
MoneyMorning.com Report - Good morning! For Nov. 25, 2015, here's the topstock market newsand stocks to watch...
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Wednesday) gained 46 points on a heavy day of economic data ahead of Thanksgiving. Investors are keeping a close eye on domestic data, as these figures could provide clues on whether the U.S. Federal Reserve is prepared to raise interest rates in December.
Yesterday, the Dow Jones Industrial Average added 19 points on news of a stronger than expected third-quarter GDP report. The news offset consumer sentiment, which hit its lowest level in 14 months. The U.S. Commerce Department announced yesterday that the economy grew by a faster pace in the third quarter than previously expected. The third-quarter GDP revision showed an increase of a 2.1% annual pace, beating last month's estimate of 1.5%. Despite the positive gain, investors should be wary of the fact that inventory levels are accelerating.
Top News in the Stock Market Today
TheStock MarketToday: Theeconomic calendarshifts due to the markets being closed on Thursday in observance of the Thanksgiving holiday. Today's schedule features an update on weekly jobless claims, new home sales, the EIA Petroleum status, and durable goods.
Oil Outlook: Oil prices slipped this morning as geopolitical concerns over Turkey and Russia subsided and traders focused on the ongoing scenario of a global oversupply of crude. January WTI prices fell 1.7% to hit $42.14 per barrel. Meanwhile, Brent oil crude - priced in London - slipped 2.0% to hit $45.21.
Earnings Outlook: DE, DCI
Earnings Report No. 1, DE: This morning, shares of Deere & Co. (NYSE: DE) are up more than 4% after the company handily beat earnings expectations. The agricultural manufacturer announced an EPS of $1.08 on revenue of $6.72 billion. Wall Street expectations called for per-share earnings of $0.74 on $6.131 billion.
Earnings Report No. 2, DCI: Before the bell, Donaldson Co. Inc. (NYSE: DCI) announced per-share earnings of $0.34 on $534 million in revenue. These are mixed numbers compared to what Wall Street expected. Consensus expectations called for an EPS of $0.33 on $555.68 million in revenue.
Stocks to Watch: SHPG, BXLT, DYAX, HRL, WMT
Stocks to Watch No. 1, SHPG: Shares of Shire Plc. (Nasdaq ADR: SHPG) were off more than 2.4% on news the company plans to make an offer for biotech giant Baxalta Inc. ( BXLT ). The deal will create one of the world's largest rare disease specialists. The announcement comes just three weeks after Shire announced a $5.9 billion deal for Dyax Corp. (Nasdaq: DYAX).
Stocks to Watch No. 2, HRL: Shares of Hormel Foods Corp. ( HRL ) were up more than 1.6% on news the food producer will conduct a two-for-one stock split. The split will have a record date of Jan. 26, 2016.
Stocks to Watch No. 3, WMT: Shares of Wal-Mart Stores Inc. ( WMT ) were off slightly this morning after The Wall Street Journal announced the global retailer may be implicated in a misconduct scandal in Brazil. The newspaper alleges the firm might have engaged in bribery.
Today's U.S. Economic Calendar (all times EST)
MBA Mortgage Applications at 7 a.m.
Durable Goods Orders at 8:30 a.m.
Jobless Claims at 8:30 a.m.
Personal Income and Outlays at 8:30 a.m.
FHFA House Price Index at 9 a.m.
PMI Services Flash at 9:45 a.m.
Bloomberg Consumer Comfort Index at 9:45 a.m.
New Home Sales at 10 a.m.
Consumer Sentiment at 10 a.m.
EIA Petroleum Status Report at 10:30 a.m.
3-Month Bill Announcement at 11 a.m.
6-Month Bill Announcement at 11 a.m.
7-Year Note Auction at 11:30 a.m.
EIA Natural Gas Report at 12 p.m.
What Investors Must Know This Week
Grab Double-Digit Gains from This Analyst "Fail"
Three Game Changers Fueling a Natural Gas Rebound
Brace Yourself for This $2 Trillion Global Disruption
Follow us on Twitter@moneymorningor like us onFacebook .
To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Personal Income and Outlays at 8:30 a.m. FHFA House Price Index at 9 a.m. PMI Services Flash at 9:45 a.m. Bloomberg Consumer Comfort Index at 9:45 a.m. New Home Sales at 10 a.m. Consumer Sentiment at 10 a.m. EIA Petroleum Status Report at 10:30 a.m. 3-Month Bill Announcement at 11 a.m. 6-Month Bill Announcement at 11 a.m. 7-Year Note Auction at 11:30 a.m. EIA Natural Gas Report at 12 p.m. What Investors Must Know This Week Grab Double-Digit Gains from This Analyst "Fail" Three Game Changers Fueling a Natural Gas Rebound Brace Yourself for This $2 Trillion Global Disruption Follow us on Twitter@moneymorningor like us onFacebook . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.
|
Personal Income and Outlays at 8:30 a.m. FHFA House Price Index at 9 a.m. PMI Services Flash at 9:45 a.m. Bloomberg Consumer Comfort Index at 9:45 a.m. New Home Sales at 10 a.m. Consumer Sentiment at 10 a.m. EIA Petroleum Status Report at 10:30 a.m. 3-Month Bill Announcement at 11 a.m. 6-Month Bill Announcement at 11 a.m. 7-Year Note Auction at 11:30 a.m. EIA Natural Gas Report at 12 p.m. What Investors Must Know This Week Grab Double-Digit Gains from This Analyst "Fail" Three Game Changers Fueling a Natural Gas Rebound Brace Yourself for This $2 Trillion Global Disruption Follow us on Twitter@moneymorningor like us onFacebook . Investors are keeping a close eye on domestic data, as these figures could provide clues on whether the U.S. Federal Reserve is prepared to raise interest rates in December. Yesterday, the Dow Jones Industrial Average added 19 points on news of a stronger than expected third-quarter GDP report.
|
Personal Income and Outlays at 8:30 a.m. FHFA House Price Index at 9 a.m. PMI Services Flash at 9:45 a.m. Bloomberg Consumer Comfort Index at 9:45 a.m. New Home Sales at 10 a.m. Consumer Sentiment at 10 a.m. EIA Petroleum Status Report at 10:30 a.m. 3-Month Bill Announcement at 11 a.m. 6-Month Bill Announcement at 11 a.m. 7-Year Note Auction at 11:30 a.m. EIA Natural Gas Report at 12 p.m. What Investors Must Know This Week Grab Double-Digit Gains from This Analyst "Fail" Three Game Changers Fueling a Natural Gas Rebound Brace Yourself for This $2 Trillion Global Disruption Follow us on Twitter@moneymorningor like us onFacebook . Investors are keeping a close eye on domestic data, as these figures could provide clues on whether the U.S. Federal Reserve is prepared to raise interest rates in December. Yesterday, the Dow Jones Industrial Average added 19 points on news of a stronger than expected third-quarter GDP report.
|
Investors are keeping a close eye on domestic data, as these figures could provide clues on whether the U.S. Federal Reserve is prepared to raise interest rates in December. Yesterday, the Dow Jones Industrial Average added 19 points on news of a stronger than expected third-quarter GDP report. The U.S. Commerce Department announced yesterday that the economy grew by a faster pace in the third quarter than previously expected.
|
7f1d51e8-278b-4c3c-b81f-bf2d88b9486e
|
722723.0
|
2015-11-25 00:00:00 UTC
|
Mid-Day Market Update: HP Slides Following Q4 Results; Deere Shares Surge
|
DE
|
https://www.nasdaq.com/articles/mid-day-market-update-hp-slides-following-q4-results-deere-shares-surge-2015-11-25
|
nan
|
nan
|
Midway through trading Wednesday, the Dow traded up 0.19 percent to 17,846.56 while the NASDAQ climbed 0.39 percent to 5,122.52. The S&P also rose, gaining 0.16 percent to 2,092.50.
Leading and Lagging Sectors
In trading on Wednesday, healthcare shares were relative leaders, up on the day by about 0.71 percent. Meanwhile, top gainers in the sector included Anthera Pharmaceuticals Inc (NASDAQ: ANTH ), up 12 percent, and Zogenix, Inc. (NASDAQ: ZGNX ), up 10 percent.
Utilities sector was the top loser in the US market on Wednesday. Top losers in the sector included Companhia de Saneamento Basico (ADR) (NYSE: SBS ), CPFL Energia S.A. (ADR) (NYSE: CPL ), and NRG Energy Inc (NYSE: NRG ).
Top Headline
Deere & Company (NYSE: DE ) reported better-than-expected earnings for its fiscal fourth quarter.
The company reported quarterly net income of $351.2 million, or $1.08 per share, down from $649.2 million, or $1.83 per share, in the year-ago period.
Worldwide net sales and revenue dropped 25 percent to $6.715 billion, while net sales of the equipment operations slipped to $5.932 billion from $8.043 billion. Analysts were expecting earnings of $0.75 per share on revenue of $6.12 billion.
Equities Trading UP
Computer Programs & Systems, Inc. (NASDAQ: CPSI ) shares shot up 18 percent to $47.68 after the company announced plans to acquire Healthland for $250 million and announced expansion of its senior management team.
Shares of Guess?, Inc. (NYSE: GES ) got a boost, shooting up 7 percent to $20.88 after the company reported better-than-expected earnings for the third quarter.
Deere & Company (NYSE: DE ) shares were also up, gaining 4 percent to $79.34 after the company reported better-than-expected earnings for its fiscal fourth quarter.
Equities Trading DOWN
Abengoa SA (ADR) (NASDAQ: ABGB ) shares tumbled 51 percent to $2.26. Following the failure of its efforts to raise capital, the company announced that it would seek protection from creditors.
Shares of QAD Inc. (NASDAQ: QADA ) were down 11 percent to $23.07 after the company reported weak Q3 sales and lowered its FY16 forecast.
HP Inc (NYSE: HPQ ) was down, falling 13 percent to $12.73 after the company reported results for its fiscal fourth quarter and issued a weak profit forecast.
Commodities
In commodity news, oil traded down 0.42 percent to $42.69, while gold traded down 0.17 percent to $1,071.50.
Silver traded down 0.16 percent Wednesday to $14.17, while copper fell 0.89 percent to $2.05.
Eurozone
European shares were higher today. The eurozone's STOXX 600 rose 1.38 percent, the Spanish Ibex Index gained 0.20 percent, while Italy's FTSE MIB Index surged 1.87 percent. Meanwhile, the German DAX jumped 2.15 percent, and the French CAC 40 climbed 1.51 percent, while U.K. shares rose 0.96 percent.
Economics
US jobless claims slipped 12,000 to 260,000 in the week ending November 21. However, economists were expecting claims to reach 270,000 in the seven days.
U.S. durable-goods orders gained 3 percent in October. However, economists were projecting a 1.5 percent growth last month.
Consumer spending increased 0.1 percent in October, while personal income surged 0.4 percent. Economists were estimating a 0.3 percent gain in spending and a 0.4 percent growth in income.
The FHFA house price index rose 0.80 percent in September, versus economists' expectations for a 0.5 percent growth. to a reading of 226.50. Economists were expecting a reading of 224.90.
Sales of new homes rose 10.7 percent for the month to an annual rate of 495,000 in October.
The University of Michigan's consumer sentiment index climbed to a final reading of 91.30 in November, versus a reading of 90 in October. Economists were expecting a reading of 93.10.
U.S. crude oil inventories climbed 961,000 barrels last week, the Energy Information Administration said. However, analysts were expecting a gain of 1.1 million barrels.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Free Trading Education - Check out the free events taking place on Marketfy this week. Spaces are limited. Sign up today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Top Headline Deere & Company (NYSE: DE ) reported better-than-expected earnings for its fiscal fourth quarter. Midway through trading Wednesday, the Dow traded up 0.19 percent to 17,846.56 while the NASDAQ climbed 0.39 percent to 5,122.52. Leading and Lagging Sectors In trading on Wednesday, healthcare shares were relative leaders, up on the day by about 0.71 percent.
|
Top losers in the sector included Companhia de Saneamento Basico (ADR) (NYSE: SBS ), CPFL Energia S.A. (ADR) (NYSE: CPL ), and NRG Energy Inc (NYSE: NRG ). Top Headline Deere & Company (NYSE: DE ) reported better-than-expected earnings for its fiscal fourth quarter. Deere & Company (NYSE: DE ) shares were also up, gaining 4 percent to $79.34 after the company reported better-than-expected earnings for its fiscal fourth quarter.
|
Midway through trading Wednesday, the Dow traded up 0.19 percent to 17,846.56 while the NASDAQ climbed 0.39 percent to 5,122.52. The eurozone's STOXX 600 rose 1.38 percent, the Spanish Ibex Index gained 0.20 percent, while Italy's FTSE MIB Index surged 1.87 percent. Leading and Lagging Sectors In trading on Wednesday, healthcare shares were relative leaders, up on the day by about 0.71 percent.
|
Midway through trading Wednesday, the Dow traded up 0.19 percent to 17,846.56 while the NASDAQ climbed 0.39 percent to 5,122.52. Leading and Lagging Sectors In trading on Wednesday, healthcare shares were relative leaders, up on the day by about 0.71 percent. Meanwhile, top gainers in the sector included Anthera Pharmaceuticals Inc (NASDAQ: ANTH ), up 12 percent, and Zogenix, Inc. (NASDAQ: ZGNX ), up 10 percent.
|
700b93c5-25c3-487e-8024-d199f8a8d3fc
|
722724.0
|
2015-11-25 00:00:00 UTC
|
Deere (DE) Tops Q4 Earnings Estimates, Profit Down Y/Y
|
DE
|
https://www.nasdaq.com/articles/deere-de-tops-q4-earnings-estimates-profit-down-y-y-2015-11-25
|
nan
|
nan
|
Deere & Company'sDE fourth-quarter fiscal 2015 (ended Oct 31, 2015) earnings declined around 41% year over year to $1.08 per share due to sluggish global markets for farm and construction equipment. Earnings, however, topped the Zacks Consensus Estimate of 74 cents.
Operational Update
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $5.93 billion, down 26% year over year. Revenues missed the Zacks Consensus Estimate of $6.13 billion. Region-wise, equipment net sales were down 23% in the U.S. and Canada, and 31% in rest of the world.
Cost of sales in the quarter decreased 23% year over year to $4.67 billion. Gross profit for the quarter came in at $1.26 billion, down 35% year over year. Selling, general and administrative expenses declined 15.5% to $719 million. Operating profit plunged around 50% year over year to $0.54 billion.
Operating income for equipment operations fell 63% year over year to $335 million due to the impact of lower shipment volumes, less favorable product mix and unfavorable currency effects, partially offset by lower production costs, lower selling, general and administrative expenses, and price realization.
Segment Performance
The Agriculture & Turf segment's sales decreased 25% year over year to $4.7 billion due to lower shipment volumes and unfavorable effects of currency swings, partly offset by price realization. Operating profit of the segment slumped 60% year over year to $271 million as lower shipment volumes, less favorable product mix and unfavorable currency were partly offset by price realization, lower selling, general and administrative expenses and reduced production costs.
Construction & Forestry sales went down 32% year over year to $1.28 billion impacted by lower shipment volumes and unfavorable currency impact, partly offset by price realization. Operating profit for the segment witnessed a significant year-over-year decline to $64 million.
Net revenue at Deere's Financial Services operations were $654 million in the reported quarter, down 14% year over year. The segment's operating profit was $226 million, compared with $261 million in the prior-year quarter. Net income in this segment was $153 million compared with $172 million in the year-ago quarter. The decline was due to the unfavorable impact of currency translation and higher losses on residual values, mainly for construction equipment operating leases, partly offset by lower selling, general and administrative expenses.
Financial Update
At the end of fiscal 2015, Deere had cash and cash equivalents of $4.16 billion compared with $3.79 billion at the end of fiscal 2014. The company generated $3.74 billion in cash from operating activities in fiscal 2015, compared with $3.53 billion in fiscal 2014. As of fourth-quarter end, long-term borrowings were $23.8 billion, compared with $24.4 billion in the fourth quarter fiscal of 2014.
Fiscal 2015 Highlights
Deere posted earnings of $5.77 per share in fiscal 2015, down 33% year over year. Revenues for fiscal 2015 decreased 21.8% to $25.8 billion from $33 billion in fiscal 2014 due to weakness in global markets for farm and construction equipment.
Looking Ahead
Deere expects total equipment sales to decline 7% year over year in fiscal 2016 and to be down around 11% in the first quarter. The projection includes a negative currency translation effect of about 2% for the full year and 4% for the first quarter. For fiscal 2016, net income attributable to the company is anticipated to be about $1.4 billion.
Deere remains optimistic about the long term, based on steady investment in new products and geographies. Further, favorable trends derived from a growing population leading to increased need for food, shelter and infrastructure, show ample opportunity for Deere's growth.
Segment-wise, Deere sees 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% for fiscal 2016 due to low commodity prices and stagnant farm incomes, and are expected to be most pronounced in the sale of higher-horsepower models.
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 10%-15% 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, due in part to 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 general economic growth.
The company foresees global sales for Construction & Forestry equipment to be down about 5% 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 as well as lower sales outside the U.S. and Canada. In forestry, global sales are expected to be down 5%-10% in comparison with last year's levels. Net income from Financial Services is estimated at around $550 million for fiscal 2016.
Our View
Given 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, falling crop prices, such as that 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 remains a concern.
Zacks Rank
At present, Deere has a Zacks Rank #4 (Sell). Some favorably ranked stocks in the same sector are John Bean Technologies Corporation JBT , CUI Global, Inc. CUI and Belden Inc. BDC . 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
DEERE & CO (DE): Free Stock Analysis Report
BELDEN INC (BDC): Free Stock Analysis Report
CUI GLOBAL INC (CUI): Free Stock Analysis Report
JOHN BEAN TECH (JBT): 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 decline was due to the unfavorable impact of currency translation and higher losses on residual values, mainly for construction equipment operating leases, partly offset by lower selling, general and administrative expenses. Further, favorable trends derived from a growing population leading to increased need for food, shelter and infrastructure, show ample opportunity for Deere's growth. Deere & Company'sDE fourth-quarter fiscal 2015 (ended Oct 31, 2015) earnings declined around 41% year over year to $1.08 per share due to sluggish global markets for farm and construction equipment.
|
Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BELDEN INC (BDC): Free Stock Analysis Report CUI GLOBAL INC (CUI): Free Stock Analysis Report JOHN BEAN TECH (JBT): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company'sDE fourth-quarter fiscal 2015 (ended Oct 31, 2015) earnings declined around 41% year over year to $1.08 per share due to sluggish global markets for farm and construction equipment. Cost of sales in the quarter decreased 23% year over year to $4.67 billion.
|
Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BELDEN INC (BDC): Free Stock Analysis Report CUI GLOBAL INC (CUI): Free Stock Analysis Report JOHN BEAN TECH (JBT): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company'sDE fourth-quarter fiscal 2015 (ended Oct 31, 2015) earnings declined around 41% year over year to $1.08 per share due to sluggish global markets for farm and construction equipment. Cost of sales in the quarter decreased 23% year over year to $4.67 billion.
|
Net revenue at Deere's Financial Services operations were $654 million in the reported quarter, down 14% year over year. Industry sales for agricultural equipment in the U.S. and Canada are expected to be down 15%-20% for fiscal 2016 due to low commodity prices and stagnant farm incomes, and are expected to be most pronounced in the sale of higher-horsepower models. Deere & Company'sDE fourth-quarter fiscal 2015 (ended Oct 31, 2015) earnings declined around 41% year over year to $1.08 per share due to sluggish global markets for farm and construction equipment.
|
b39dcf53-8796-421e-975d-dbcae860ae99
|
722725.0
|
2015-11-25 00:00:00 UTC
|
Mid-Morning Market Update: Markets Edge Higher; Deere Profit Tops Views
|
DE
|
https://www.nasdaq.com/articles/mid-morning-market-update-markets-edge-higher-deere-profit-tops-views-2015-11-25
|
nan
|
nan
|
Following the market opening Wednesday, the Dow traded up 0.15 percent to 17,839.38 while the NASDAQ climbed 0.20 percent to 5,113.14. The S&P also rose, gaining 0.10 percent to 2,091.23.
Leading and Lagging Sectors
In trading on Wednesday, healthcare shares were relative leaders, up on the day by about 0.35 percent. Meanwhile, top gainers in the sector included ImmunoGen, Inc. (NASDAQ: IMGN ), up 7 percent, and Pacira Pharmaceuticals Inc (NASDAQ: PCRX ), up 5 percent.
Energy sector was the top loser in the US market on Wednesday. Top losers in the sector included Petroleo Brasileiro SA Petrobras (ADR) (NYSE: PBR ), Stone Energy Corporation (NYSE: SGY ), and Seadrill Ltd (NYSE: SDRL ).
Top Headline
Deere & Company (NYSE: DE ) reported better-than-expected earnings for its fiscal fourth quarter.
The company reported quarterly net income of $351.2 million, or $1.08 per share, down from $649.2 million, or $1.83 per share, in the year-ago period.
Worldwide net sales and revenue dropped 25 percent to $6.715 billion, while net sales of the equipment operations slipped to $5.932 billion from $8.043 billion. Analysts were expecting earnings of $0.75 per share on revenue of $6.12 billion.
Equities Trading UP
Computer Programs & Systems, Inc. (NASDAQ: CPSI ) shares shot up 18 percent to $47.65 after the company announced plans to acquire Healthland for $250 million and announced expansion of its senior management team.
Shares of Guess?, Inc. (NYSE: GES ) got a boost, shooting up 9 percent to $21.25 after the company reported better-than-expected earnings for the third quarter.
Deere & Company (NYSE: DE ) shares were also up, gaining 3 percent to $78.78 after the company reported better-than-expected earnings for its fiscal fourth quarter.
Equities Trading DOWN
Abengoa SA (ADR) (NASDAQ: ABGB ) shares tumbled 45 percent to $2.55. Following the failure of its efforts to raise capital, the company announced that it would seek protection from creditors.
Shares of QAD Inc. (NASDAQ: QADA ) were down 14 percent to $22.31 after the company reported weak Q3 sales and lowered its FY16 forecast.
HP Inc (NYSE: HPQ ) was down, falling 16 percent to $12.36 after the company reported results for its fiscal fourth quarter and issued a weak profit forecast.
Commodities
In commodity news, oil traded down 1.45 percent to $42.25, while gold traded down 0.31 percent to $1,070.00.
Silver traded down 0.51 percent Wednesday to $14.12, while copper fell 0.77 percent to $2.05.
Eurozone
European shares were mostly higher today. The eurozone's STOXX 600 rose 1.484 percent, the Spanish Ibex Index slipped 0.38 percent, while Italy's FTSE MIB Index surged 1.48 percent. Meanwhile, the German DAX jumped 1.80 percent, and the French CAC 40 climbed 1.38 percent, while U.K. shares rose 0.95 percent.
Economics
US jobless claims slipped 12,000 to 260,000 in the week ending November 21. However, economists were expecting claims to reach 270,000 in the seven days.
U.S. durable-goods orders gained 3 percent in October. However, economists were projecting a 1.5 percent growth last month.
Consumer spending increased 0.1 percent in October, while personal income surged 0.4 percent. Economists were estimating a 0.3 percent gain in spending and a 0.4 percent growth in income.
The FHFA house price index rose 0.80 percent in September, versus economists' expectations for a 0.5 percent growth. to a reading of 226.50. Economists were expecting a reading of 224.90.
Sales of new homes rose 10.7 percent for the month to an annual rate of 495,000 in October.
The University of Michigan's consumer sentiment index climbed to a final reading of 91.30 in November, versus a reading of 90 in October. Economists were expecting a reading of 93.10.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Free Trading Education - Check out the free events taking place on Marketfy this week. Spaces are limited. Sign up today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Top Headline Deere & Company (NYSE: DE ) reported better-than-expected earnings for its fiscal fourth quarter. Following the market opening Wednesday, the Dow traded up 0.15 percent to 17,839.38 while the NASDAQ climbed 0.20 percent to 5,113.14. Leading and Lagging Sectors In trading on Wednesday, healthcare shares were relative leaders, up on the day by about 0.35 percent.
|
Top Headline Deere & Company (NYSE: DE ) reported better-than-expected earnings for its fiscal fourth quarter. Deere & Company (NYSE: DE ) shares were also up, gaining 3 percent to $78.78 after the company reported better-than-expected earnings for its fiscal fourth quarter. The FHFA house price index rose 0.80 percent in September, versus economists' expectations for a 0.5 percent growth.
|
The eurozone's STOXX 600 rose 1.484 percent, the Spanish Ibex Index slipped 0.38 percent, while Italy's FTSE MIB Index surged 1.48 percent. The FHFA house price index rose 0.80 percent in September, versus economists' expectations for a 0.5 percent growth. Following the market opening Wednesday, the Dow traded up 0.15 percent to 17,839.38 while the NASDAQ climbed 0.20 percent to 5,113.14.
|
Following the market opening Wednesday, the Dow traded up 0.15 percent to 17,839.38 while the NASDAQ climbed 0.20 percent to 5,113.14. Deere & Company (NYSE: DE ) shares were also up, gaining 3 percent to $78.78 after the company reported better-than-expected earnings for its fiscal fourth quarter. Leading and Lagging Sectors In trading on Wednesday, healthcare shares were relative leaders, up on the day by about 0.35 percent.
|
08eff033-7b78-4a72-bbf8-8473df2f854a
|
722726.0
|
2015-11-25 00:00:00 UTC
|
Earnings Reaction History: Deere & Company, 50.0% Follow-Through Indicator, 2.7% Sensitive
|
DE
|
https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-500-follow-through-indicator-27-sensitive-2015-11
|
nan
|
nan
|
Expected Earnings Release: 11/25/2015, Premarket
Avg. Extended-Hours Dollar Volume: $12,314,597
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: 25%
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 25.0% 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: 66.7%
Average next regular session additional loss: 2.3%
Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (4 events) the stock dropped further, adding to the extended-hours losses by an average of 2.3% 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.
|
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: 25% 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 25.0% 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: 66.7% Average next regular session additional loss: 2.3% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (4 events) the stock dropped further, adding to the extended-hours losses by an average of 2.3% by the following regular session close.
|
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: 25% 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 25.0% 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: 66.7% Average next regular session additional loss: 2.3% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (4 events) the stock dropped further, adding to the extended-hours losses by an average of 2.3% by the following regular session close.
|
Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 25% 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 25.0% 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: 66.7% Average next regular session additional loss: 2.3% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (4 events) the stock dropped further, adding to the extended-hours losses by an average of 2.3% by the following regular session close. Extended-Hours Dollar Volume: $12,314,597 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session.
|
Extended-Hours Dollar Volume: $12,314,597 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.
|
cb146d8c-18db-4f9c-9413-6bf4096fb379
|
722727.0
|
2015-11-25 00:00:00 UTC
|
When Will Caterpillar's End Markets Recover?
|
DE
|
https://www.nasdaq.com/articles/when-will-caterpillars-end-markets-recover-2015-11-25
|
nan
|
nan
|
The eternal question with a company like Caterpillar is when the cycle will turn in its end markets. As ever with highly cyclical stocks, when the market turns down, its sales fall dramatically, only to rise in similar fashion when conditions improve. In this context, let's look at the underlying sales trends with Caterpillar and what it means for its prospects in 2016.
It's different this time
The following chart shows Caterpillar's stock price (adjusted for stock splits and dividends) compared with its retail sales of machines to end users and original equipment manufacturers, or OEMs. It's a useful measure because there is always a time lag between sales to dealers (which, along with OEM sales, make up the majority of Caterpillar's sales) and dealers' sales to end users.
You can think of the data in these charts as a kind of forward projection of Caterpillar's sales. The current slowdown is notably different than the last one -- the U.S. housing bust caused North America sales to lag, but now the slowdown in energy and resources capital expenditures has caused emerging markets to underperform.
AUTHOR'S ANALYSIS. STOCK PRICE IS ADJUSTED FOR SPLITS AND DIVIDENDS.
That said, the key thing to focus on now is growth from the current position. The following chart breaks out the contribution per segment and region. All figures are from the most recent third-quarter results, and I've ignored intersegment sales in this analysis.
EAME IS EUROPE, AFRICA, MIDDLE EAST. FIGURES REPRESENT SHARE OF SEGMENTAL SALES EXCLUDING INTERSEGMENT SALES.
And now let's look at each segment's retail sales growth in the past two years. Retail sales in construction and in energy and transportation turned negative in 2015, while a bottom appears to have formed in resource industries following a protracted slump.
A few takeaways:
North America and EAME now make up around 70% of sales.
Resource industries (mining) has become less important because of the protracted earnings slump.
The key to near-term prospects is construction along with energy and transportation (together making up 82% of sales), particularly those in developed markets (59%).
Oil, again
Starting with construction, it appears the overall slowdown is due to a combination of weaker Asia-Pacific growth (construction sales down 27% in the third quarter) and Latin America (a 43% decline), and the negative effects of falling oil prices .
Focusing on oil and gas, in the third-quarter results, Caterpillar stated that improvements in residential and nonresidential construction in the U.S. were offset by declines in energy-related spending. Similarly, Deere & Company management downgraded full-year underlying sales expectations for the construction and forestry segment from 2% growth to a 5% decline. Again, Deere blamed the weakness on a combination of wet weather in the U.S. and a slowdown in demand from the energy sector.
Moving on to energy and transportation, Caterpillar highlights oil and gas along with rail as the key industries in the energy and transportation segment.
Oil well servicing and drilling equipment has seen sales declines because of a decline in energy spending, but the weakness in transportation (rail locomotive engines) is "primarily due to the absence of a Tier IV locomotive offering." I've written previously on how General Electric Company stole a march on Caterpillar with Tier IV locomotives.
The good news on the rail front is that Caterpillar expects its Tier IV locomotive to be available from mid-2016, so some recovery in future years is expected.
The takeaway
Looking ahead to 2016, management is predicting a 5% decline in overall sales, with construction sales flat or down 5%, the resource industry down around 10%, and energy and transportation sales down 5% to 10%. But let's recall that forecasts are subject to changes in the end-market environment -- a key consideration with a cyclical stock like Caterpillar.
Therefore, if you like the outlook for oil prices in 2016, then Caterpillar is a worthy candidate as a stock pick. My analysis underpins the importance of energy, and particularly oil, on the energy and transportation segment -- especially as the transportation bit has better prospects in 2016 because of its Tier IV locomotive. Moreover, the weakness in Caterpillar's construction sales is primarily due to oil spending -- something that Deere's results confirm.
In conclusion, while mining is obviously still a consideration, Caterpillar is a good option for investors looking for some exposure to oil in 2016.
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 When Will Caterpillar's End Markets Recover? originally appeared on Fool.com.
Lee Samaha 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 - 2015 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.
|
Focusing on oil and gas, in the third-quarter results, Caterpillar stated that improvements in residential and nonresidential construction in the U.S. were offset by declines in energy-related spending. Similarly, Deere & Company management downgraded full-year underlying sales expectations for the construction and forestry segment from 2% growth to a 5% decline. In this context, let's look at the underlying sales trends with Caterpillar and what it means for its prospects in 2016.
|
It's different this time The following chart shows Caterpillar's stock price (adjusted for stock splits and dividends) compared with its retail sales of machines to end users and original equipment manufacturers, or OEMs. Oil well servicing and drilling equipment has seen sales declines because of a decline in energy spending, but the weakness in transportation (rail locomotive engines) is "primarily due to the absence of a Tier IV locomotive offering." Moreover, the weakness in Caterpillar's construction sales is primarily due to oil spending -- something that Deere's results confirm.
|
It's a useful measure because there is always a time lag between sales to dealers (which, along with OEM sales, make up the majority of Caterpillar's sales) and dealers' sales to end users. Oil well servicing and drilling equipment has seen sales declines because of a decline in energy spending, but the weakness in transportation (rail locomotive engines) is "primarily due to the absence of a Tier IV locomotive offering." The takeaway Looking ahead to 2016, management is predicting a 5% decline in overall sales, with construction sales flat or down 5%, the resource industry down around 10%, and energy and transportation sales down 5% to 10%.
|
The key to near-term prospects is construction along with energy and transportation (together making up 82% of sales), particularly those in developed markets (59%). Oil, again Starting with construction, it appears the overall slowdown is due to a combination of weaker Asia-Pacific growth (construction sales down 27% in the third quarter) and Latin America (a 43% decline), and the negative effects of falling oil prices . In this context, let's look at the underlying sales trends with Caterpillar and what it means for its prospects in 2016.
|
c61b52b3-24b1-4f68-a13d-08e48c83e4fd
|
722728.0
|
2015-11-25 00:00:00 UTC
|
Deere & Company (DE) Tops Q4 Earnings, Revenues Miss
|
DE
|
https://www.nasdaq.com/articles/deere-company-de-tops-q4-earnings-revenues-miss-2015-11-25
|
nan
|
nan
|
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, Construction & Forestry equipment sales are expected to grow as the leading indicators for construction activity continue to trend up, boding well for Deere.
Investors have thus been eagerly awaiting the company's latest earnings report. Let's have a quick look at the Illinois-based company's fourth quarter fiscal 2015 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 74 cents for the fourth quarter.
Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 21.04%.
Earnings
Deere posted earnings of $1.08 per share in the fourth quarter, beating the Zacks Consensus Estimate of 74 cents. However, earnings plunged roughly 41% year over year due to sluggish global markets for farm and construction equipment.
Revenues
Deere reported fourth quarter revenues of $5.932 billion, falling short of the Zacks Consensus Estimate of $6.131 billion.
Key Stats
Deere projects total equipment sales to decline 7% year over year in fiscal 2016 and to be down about 11% in the first 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 4% for the first quarter. For fiscal 2016, net income attributable to Deere & Company is anticipated to be about $1.4 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #4 (Sell) 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!
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.
|
Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $25 billion. 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.
|
Earnings Deere posted earnings of $1.08 per share in the fourth quarter, beating the Zacks Consensus Estimate of 74 cents. Revenues Deere reported fourth quarter revenues of $5.932 billion, falling short of the Zacks Consensus Estimate of $6.131 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. Earnings Deere posted earnings of $1.08 per share in the fourth quarter, beating the Zacks Consensus Estimate of 74 cents. Revenues Deere reported fourth quarter revenues of $5.932 billion, falling short of the Zacks Consensus Estimate of $6.131 billion.
|
Earnings Deere posted earnings of $1.08 per share in the fourth quarter, beating the Zacks Consensus Estimate of 74 cents. Revenues Deere reported fourth quarter revenues of $5.932 billion, falling short of the Zacks Consensus Estimate of $6.131 billion. Deere & CompanyDE is the world's leading manufacturer of agricultural machinery with a market capitalization of $25 billion.
|
a669ad97-8dce-4f6c-811a-6711a8a6c307
|
722729.0
|
2015-11-25 00:00:00 UTC
|
US Equities Futures Point Up Ahead of Data, Thanksgiving Holiday
|
DE
|
https://www.nasdaq.com/articles/us-equities-futures-point-ahead-data-thanksgiving-holiday-2015-11-25
|
nan
|
nan
|
U.S. stock futures were slightly higher Wednesday as investors waited for data on jobless claims and consumer spending that will help shape the Federal Reserve's monetary policy makers' decision on interest rates when they meet next month.
US markets are closed Thursday for the Thanksgiving holiday and will close early Friday, at 1:00 p.m. E.T.
Among economic data out Wednesday, at 8:30 a.m., data for the week ended Nov. 21 are expected to show jobless claims edged down to 270,000 from 271,000 a week earlier, in the consensus range between 265,000 and 282,000, according to data compiled by Econoday.
Personal income data for October are expected to show a 0.4% increase from September while consumer spending is expected to have edged up 0.3%. In September, both rose 0.1%.
At 10:00 a.m., new home sales for October are expected to have increased to 499,000 from 468,000 in September, in the consensus range between 458,000 and 540,000.
In equities, Deere & Company ( DE ) shares rose more than 4% in recent pre-market trade after the maker of agriculture and turf equipment reported better-than-expected fiscal Q4 results.
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.
|
U.S. stock futures were slightly higher Wednesday as investors waited for data on jobless claims and consumer spending that will help shape the Federal Reserve's monetary policy makers' decision on interest rates when they meet next month. In equities, Deere & Company ( DE ) shares rose more than 4% in recent pre-market trade after the maker of agriculture and turf equipment reported better-than-expected fiscal Q4 results. Among economic data out Wednesday, at 8:30 a.m., data for the week ended Nov. 21 are expected to show jobless claims edged down to 270,000 from 271,000 a week earlier, in the consensus range between 265,000 and 282,000, according to data compiled by Econoday.
|
Among economic data out Wednesday, at 8:30 a.m., data for the week ended Nov. 21 are expected to show jobless claims edged down to 270,000 from 271,000 a week earlier, in the consensus range between 265,000 and 282,000, according to data compiled by Econoday. U.S. stock futures were slightly higher Wednesday as investors waited for data on jobless claims and consumer spending that will help shape the Federal Reserve's monetary policy makers' decision on interest rates when they meet next month. In equities, Deere & Company ( DE ) shares rose more than 4% in recent pre-market trade after the maker of agriculture and turf equipment reported better-than-expected fiscal Q4 results.
|
U.S. stock futures were slightly higher Wednesday as investors waited for data on jobless claims and consumer spending that will help shape the Federal Reserve's monetary policy makers' decision on interest rates when they meet next month. Among economic data out Wednesday, at 8:30 a.m., data for the week ended Nov. 21 are expected to show jobless claims edged down to 270,000 from 271,000 a week earlier, in the consensus range between 265,000 and 282,000, according to data compiled by Econoday. In equities, Deere & Company ( DE ) shares rose more than 4% in recent pre-market trade after the maker of agriculture and turf equipment reported better-than-expected fiscal Q4 results.
|
U.S. stock futures were slightly higher Wednesday as investors waited for data on jobless claims and consumer spending that will help shape the Federal Reserve's monetary policy makers' decision on interest rates when they meet next month. Among economic data out Wednesday, at 8:30 a.m., data for the week ended Nov. 21 are expected to show jobless claims edged down to 270,000 from 271,000 a week earlier, in the consensus range between 265,000 and 282,000, according to data compiled by Econoday. In equities, Deere & Company ( DE ) shares rose more than 4% in recent pre-market trade after the maker of agriculture and turf equipment reported better-than-expected fiscal Q4 results.
|
affbc18f-dbd3-4c47-a47b-aa31056be2fe
|
722730.0
|
2015-11-25 00:00:00 UTC
|
Pre-Market Most Active for Nov 25, 2015 : SUNE, SDRL, ALU, PBR, TVIX, DE, KBIO, XIV, MT, FB, AAPL, BMRN
|
DE
|
https://www.nasdaq.com/articles/pre-market-most-active-nov-25-2015-sune-sdrl-alu-pbr-tvix-de-kbio-xiv-mt-fb-aapl-bmrn-2015
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is up 6.22 to 4,675.63. The total Pre-Market volume is currently 8,481,209 shares traded.
The following are the most active stocks for the pre-market session :
SunEdison, Inc. ( SUNE ) is -0.25 at $3.87, with 2,432,527 shares traded. As reported by Zacks, the current mean recommendation for SUNE is in the "buy range".
Seadrill Limited ( SDRL ) is -0.355 at $6.13, with 457,694 shares traded. As reported in the last short interest update the days to cover for SDRL is 7.124539; this calculation is based on the average trading volume of the stock.
Alcatel Lucent ( ALU ) is -0.02 at $3.92, with 261,945 shares traded. ALU's current last sale is 98% of the target price of $4.
Petroleo Brasileiro S.A.- Petrobras ( PBR ) is -0.27 at $5.30, with 200,972 shares traded. PBR's current last sale is 86.53% of the target price of $6.125.
Daily 2X VIX ST ETN Velocityshares ( TVIX ) is -0.03 at $6.07, with 186,628 shares traded. This represents a 14.31% increase from its 52 Week Low.
Deere & Company ( DE ) is +3.46 at $79.80, with 178,548 shares traded. RTT News Reports: Deere Q4 Profit Down 46% Amid Lower Demand For Farm Equipment
KaloBios Pharmaceuticals, Inc. ( KBIO ) is +3.3 at $21.70, with 146,934 shares traded.KBIO is scheduled to provide an earnings report on 11/26/2015, for the fiscal quarter ending Sep2015. The consensus earnings per share forecast is 999 per share, which represents a -192 percent increase over the EPS one Year Ago
Daily Inverse VIX ST ETN Velocityshares ( XIV ) is +0.1 at $29.62, with 135,100 shares traded. This represents a 39% increase from its 52 Week Low.
ArcelorMittal ( MT ) is -0.21 at $4.71, with 131,913 shares traded. As reported by Zacks, the current mean recommendation for MT is in the "buy range".
Facebook, Inc. ( FB ) is +0.4 at $106.14, with 110,478 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2015. The consensus EPS forecast is $0.5. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
Apple Inc. ( AAPL ) is +0.08 at $118.96, with 98,847 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2015. The consensus EPS forecast is $3.26. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
BioMarin Pharmaceutical Inc. ( BMRN ) is -2.2 at $95.60, with 66,411 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2015. The consensus EPS forecast is $0.88. As reported by Zacks, the current mean recommendation for BMRN is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
RTT News Reports: Deere Q4 Profit Down 46% Amid Lower Demand For Farm Equipment KaloBios Pharmaceuticals, Inc. ( KBIO ) is +3.3 at $21.70, with 146,934 shares traded.KBIO is scheduled to provide an earnings report on 11/26/2015, for the fiscal quarter ending Sep2015. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2015. The total Pre-Market volume is currently 8,481,209 shares traded.
|
Daily 2X VIX ST ETN Velocityshares ( TVIX ) is -0.03 at $6.07, with 186,628 shares traded. The consensus earnings per share forecast is 999 per share, which represents a -192 percent increase over the EPS one Year Ago Daily Inverse VIX ST ETN Velocityshares ( XIV ) is +0.1 at $29.62, with 135,100 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2015.
|
The total Pre-Market volume is currently 8,481,209 shares traded. RTT News Reports: Deere Q4 Profit Down 46% Amid Lower Demand For Farm Equipment KaloBios Pharmaceuticals, Inc. ( KBIO ) is +3.3 at $21.70, with 146,934 shares traded.KBIO is scheduled to provide an earnings report on 11/26/2015, for the fiscal quarter ending Sep2015. The consensus earnings per share forecast is 999 per share, which represents a -192 percent increase over the EPS one Year Ago Daily Inverse VIX ST ETN Velocityshares ( XIV ) is +0.1 at $29.62, with 135,100 shares traded.
|
RTT News Reports: Deere Q4 Profit Down 46% Amid Lower Demand For Farm Equipment KaloBios Pharmaceuticals, Inc. ( KBIO ) is +3.3 at $21.70, with 146,934 shares traded.KBIO is scheduled to provide an earnings report on 11/26/2015, for the fiscal quarter ending Sep2015. The consensus earnings per share forecast is 999 per share, which represents a -192 percent increase over the EPS one Year Ago Daily Inverse VIX ST ETN Velocityshares ( XIV ) is +0.1 at $29.62, with 135,100 shares traded. The total Pre-Market volume is currently 8,481,209 shares traded.
|
36effe63-242e-4786-82c6-d3a4b194093b
|
722731.0
|
2015-11-24 00:00:00 UTC
|
Deere (DE) to Report Q4 Earnings: What's in the Cards?
|
DE
|
https://www.nasdaq.com/articles/deere-de-to-report-q4-earnings%3A-whats-in-the-cards-2015-11-24
|
nan
|
nan
|
Deere & CompanyDE is slated to report fourth-quarter and fiscal 2015 results before the opening bell on Nov 25, 2015. In the trailing four quarters, the company reported better-than-expected results with an average positive earnings surprise of 21.04%.
Let us see how things have been shaping up for this quarter.
Factors to Consider
Deere expects equipment sales to decrease around 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter. The projection includes a negative currency-translation effect of about 4% for the full fiscal year and 5% for the fourth quarter. On Aug 25, 2015, USDA (U.S. Department of Agriculture) projected that farm incomes will drop 36% in 2015 to $58.3 billion from 2014 due to declining crop and livestock prices. This will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere.
Deere foresees global sales for Construction & Forestry equipment to be down about 5% in 2015 including a negative currency-translation effect of about 3%. The decline reflects impact of weakening conditions in the North American energy sector, as well as lower sales outside the U.S. and Canada. In addition, uncertainty over the 2015-2016 agriculture budget as well as concerns about possible further increases in interest rates are weighing on farmer confidence. These factors remain headwinds for Deere.
On the flipside, net income attributable to Deere is anticipated to be about $1.8 billion for fiscal 2015. Further, favorable trends derived from a growing, more affluent and increasing population and rising living standards will provide opportunity for Deere's growth.
Earnings Whispers
Our proven model does not conclusively show that Deere 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: The ESP for Deere is currently 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are at 74 cents per share.
Zacks Rank: Deere's Zacks Rank #5 (Strong Sell) when combined with a 0.00% ESP makes surprise prediction unlikely.
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:
Reliance Steel & Aluminum Co. RS with an Earnings ESP of +3.57% and a Zacks Rank #3.
Capstone Turbine Corp. CPST has earnings ESP of +26.92% and carries a Zacks Rank #3.
Brady Corp. BRC has an earnings ESP of +9.09% and holds a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
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
RELIANCE STEEL (RS): Free Stock Analysis Report
CAPSTONE TURBIN (CPST): Free Stock Analysis Report
BRADY CORP CL A (BRC): 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.
|
On Aug 25, 2015, USDA (U.S. Department of Agriculture) projected that farm incomes will drop 36% in 2015 to $58.3 billion from 2014 due to declining crop and livestock prices. The decline reflects impact of weakening conditions in the North American energy sector, as well as lower sales outside the U.S. and Canada. Further, favorable trends derived from a growing, more affluent and increasing population and rising living standards will provide opportunity for Deere's growth.
|
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: Reliance Steel & Aluminum Co. RS with an Earnings ESP of +3.57% and a Zacks Rank #3. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report RELIANCE STEEL (RS): Free Stock Analysis Report CAPSTONE TURBIN (CPST): Free Stock Analysis Report BRADY CORP CL A (BRC): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is slated to report fourth-quarter and fiscal 2015 results before the opening bell on Nov 25, 2015.
|
Zacks Rank: Deere's Zacks Rank #5 (Strong Sell) when combined with a 0.00% ESP makes surprise prediction unlikely. 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: Reliance Steel & Aluminum Co. RS with an Earnings ESP of +3.57% and a Zacks Rank #3. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report RELIANCE STEEL (RS): Free Stock Analysis Report CAPSTONE TURBIN (CPST): Free Stock Analysis Report BRADY CORP CL A (BRC): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Factors to Consider Deere expects equipment sales to decrease around 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter. This will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report RELIANCE STEEL (RS): Free Stock Analysis Report CAPSTONE TURBIN (CPST): Free Stock Analysis Report BRADY CORP CL A (BRC): Free Stock Analysis Report To read this article on Zacks.com click here.
|
dbaac8e6-b2be-44bb-8750-8dab97bb323c
|
722732.0
|
2015-11-24 00:00:00 UTC
|
Dow Jones Industrial Average Gains 19 Points on Strong GDP Report
|
DE
|
https://www.nasdaq.com/articles/dow-jones-industrial-average-gains-19-points-strong-gdp-report-2015-11-24
|
nan
|
nan
|
MoneyMorning.com Report - For Nov. 24, 2015, here's the topstock market newsand stocks to watch based on today's market moves...
How Did the Stock Market Do Today?
Dow Jones:17,812.56; +19.88;+0.11%
S&P 500: 2,089.14; +2.55;+1.49%
Nasdaq:4,984.62; +56.73;+1.15%
The Dow Jones Industrial Average today (Tuesday) added 19 points on news of a stronger than expected third-quarter GDP report. The news offset news consumer sentiment, which hit its lowest level in 14 months. This morning, the U.S. Commerce Department announced the economy grew by a faster pace in the third quarter than previously expected. The third-quarter GDP revision showed an increase of a 2.1% annual pace, beating last month's estimate of 1.5%. Despite the positive gain, investors should be wary of the fact that inventory levels are accelerating.
Top Stock Market News Today
Stock MarketNews: Five of 10 S&P sectors saw gains on Tuesday, with energy stocks and materials stocks showing the strongest gains. The largest decliner on the day was the telecom sector. Gold prices were up on geopolitical concerns related to the attack on a Russian warplane in Turkey.
Oil in Focus: Oil prices saw strong gains on concerns about geopolitical tensions in the Middle East. This morning, a Russian warplane was shot down near Turkey, raising the stakes on how the international community deals with ISIS. January WTI prices were up 2.9%, trading at $42.97 per barrel. Meanwhile, Brent oil crude - priced in London - added 3.1% to hit $46.24. High-volume stocks Exxon Mobil Corp. ( XOM ) and Chevron Corp. ( CVX ) added 2% and 1.5% on the day, respectively. Shares of Kinder Morgan Inc. ( KMI ) were up 3.1%.
On Tap Tomorrow: On Wednesday, theeconomic calendarshifts due to the markets being closed on Thursday in observance of the Thanksgiving holiday. Tomorrow's schedule features an update on weekly jobless claims, new home sales, the EIA Petroleum status, and durable goods. Companies set to report quarterly earnings include Deere & Co. ( DE ) and Donaldson Co. Inc. ( DCI ).
Stocks to Watch: FDX, XRX, TWTR , AAL, UAL, DAL, PCLN, TRIP, AVP, C
Stocks to Watch No.1, FDX: Shares of FedEx Corp. (FDX) were up marginally on news the Federal Trade Commission has approved the shipping giant's proposed merger with Europe-based TNT Express. The deal has not been approved by the European Union, but the companies have said publicly that EU antitrust regulators plan to approve the deal.
Stocks to Watch No.2, XRX: Shares of Xerox Corp. (XRX) are in focus on news activist investor Carl Icahn has purchased a 7% stake in the printer and copier manufacturer. The stake makes him the second-largest shareholder of the firm. Now here's the bigger question: Is Carl Icahn going to purchase Twitter Inc. (TWTR)?
Stocks to Watch No.3, AAL: The U.S. State Department issued a global travel alert for Americans, which punished stocks in the travel sector. Airline stocks slumped on the news. United Continental Holdings Inc. (UAL) dipped 3%, American Airlines Group Inc. (Nasdaq: AAL) fell 2.5%, and Delta Air Lines Inc. (DAL) was off 3.1%. Meanwhile, Priceline Group Inc. (Nasdaq: PCLN) and Tripadvisor Inc. (Nasdaq: TRIP) were both off about 2%.
Stocks to Watch No.4, AVP: Shares of Avon Products Inc. (AVP) jumped more than 16% on news the company received an upgrade from "Hold" to "Buy" from Citigroup Inc. (C). The investment bank set a price target of $5 per share, which represented a more than 70% jump from levels prior to the release of its report.
What Investors Must Know This Week
Grab Double-Digit Gains from This Analyst "Fail"
Three Game Changers Fueling a Natural Gas Rebound
Brace Yourself for This $2 Trillion Global Disruption
Follow us on Twitter@moneymorningor like us onFacebook .
To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. Nasdaq:4,984.62; +56.73;+1.15% The Dow Jones Industrial Average today (Tuesday) added 19 points on news of a stronger than expected third-quarter GDP report.
|
Stocks to Watch: FDX, XRX, TWTR , AAL, UAL, DAL, PCLN, TRIP, AVP, C Stocks to Watch No.1, FDX: Shares of FedEx Corp. (FDX) were up marginally on news the Federal Trade Commission has approved the shipping giant's proposed merger with Europe-based TNT Express. United Continental Holdings Inc. (UAL) dipped 3%, American Airlines Group Inc. (Nasdaq: AAL) fell 2.5%, and Delta Air Lines Inc. (DAL) was off 3.1%. Nasdaq:4,984.62; +56.73;+1.15% The Dow Jones Industrial Average today (Tuesday) added 19 points on news of a stronger than expected third-quarter GDP report.
|
Stocks to Watch: FDX, XRX, TWTR , AAL, UAL, DAL, PCLN, TRIP, AVP, C Stocks to Watch No.1, FDX: Shares of FedEx Corp. (FDX) were up marginally on news the Federal Trade Commission has approved the shipping giant's proposed merger with Europe-based TNT Express. Nasdaq:4,984.62; +56.73;+1.15% The Dow Jones Industrial Average today (Tuesday) added 19 points on news of a stronger than expected third-quarter GDP report. This morning, the U.S. Commerce Department announced the economy grew by a faster pace in the third quarter than previously expected.
|
This morning, a Russian warplane was shot down near Turkey, raising the stakes on how the international community deals with ISIS. Nasdaq:4,984.62; +56.73;+1.15% The Dow Jones Industrial Average today (Tuesday) added 19 points on news of a stronger than expected third-quarter GDP report. This morning, the U.S. Commerce Department announced the economy grew by a faster pace in the third quarter than previously expected.
|
2958acca-3bb4-4ddd-9490-345c473d9c2c
|
722733.0
|
2015-11-23 00:00:00 UTC
|
2 Lucky Winners in GuruFocus' 'Guess Which Stocks Buffett Bought' Contest
|
DE
|
https://www.nasdaq.com/articles/2-lucky-winners-gurufocus-guess-which-stocks-buffett-bought-contest-2015-11-23
|
nan
|
nan
|
Out of the many submissions we received in our quarterly "Guess Which Stocks Warren Buffett Bought" contest, only two GuruFocus members were able to make three correct predictions, and will win a free copy of an investing book of their choice. The lucky winners are usernames:
DividendBuddy, who correctly guessed Phillips 66 ( NYSE:PSX ), IBM ( NYSE:IBM ) and Kraft Heinz Co. ( NASDAQ:KHC ).
Astakwa, who correctly guessed Phillips 66, IBM and Charter Communications Inc. ( CHTR ).
Warning! GuruFocus has detected 3 Warning Signs with YELP. Click here to check it out.
YELP 15-Year Financial Data
The intrinsic value of YELP
Peter Lynch Chart of YELP
Warning! GuruFocus has detected 6 Warning Signs with NOV. Click here to check it out.
LMT 15-Year Financial Data
The intrinsic value of LMT
Peter Lynch Chart of LMT
Warning! GuruFocus has detected 4 Warning Sign with PSX. Click here to check it out.
PSX 15-Year Financial Data
The intrinsic value of PSX
Peter Lynch Chart of PSX
The holdings that threw many participants off include Walmart ( WMT ), Wells Fargo ( WFC ), Deere & Co. ( DE ) and DirecTV, a holding Buffett actually lost due to the merger with AT&T ( T ). The vast majority of participants had correctly guessed Buffett would increase his stakes in IBM and Phillips 66.
Despite both Walmart and Deere being down year-to-date, Buffett trimmed his positions during the quarter by 7% and 1.5%. He also closed his position in Cable One Inc. (CABO).
The winners, please contact us and let us know your address and the book you want. Those who didn't win this time need not worry; we'll have another friendly contest next quarter.
View Warren Buffett (Trades, Portfolio)'s current portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days.
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.
|
GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members . The lucky winners are usernames: DividendBuddy, who correctly guessed Phillips 66 ( NYSE:PSX ), IBM ( NYSE:IBM ) and Kraft Heinz Co. ( NASDAQ:KHC ). GuruFocus has detected 3 Warning Signs with YELP.
|
The lucky winners are usernames: DividendBuddy, who correctly guessed Phillips 66 ( NYSE:PSX ), IBM ( NYSE:IBM ) and Kraft Heinz Co. ( NASDAQ:KHC ). GuruFocus has detected 3 Warning Signs with YELP. GuruFocus has detected 6 Warning Signs with NOV. Click here to check it out.
|
GuruFocus has detected 6 Warning Signs with NOV. Click here to check it out. PSX 15-Year Financial Data The intrinsic value of PSX Peter Lynch Chart of PSX The holdings that threw many participants off include Walmart ( WMT ), Wells Fargo ( WFC ), Deere & Co. ( DE ) and DirecTV, a holding Buffett actually lost due to the merger with AT&T ( T ). The lucky winners are usernames: DividendBuddy, who correctly guessed Phillips 66 ( NYSE:PSX ), IBM ( NYSE:IBM ) and Kraft Heinz Co. ( NASDAQ:KHC ).
|
GuruFocus has detected 6 Warning Signs with NOV. Click here to check it out. PSX 15-Year Financial Data The intrinsic value of PSX Peter Lynch Chart of PSX The holdings that threw many participants off include Walmart ( WMT ), Wells Fargo ( WFC ), Deere & Co. ( DE ) and DirecTV, a holding Buffett actually lost due to the merger with AT&T ( T ). The lucky winners are usernames: DividendBuddy, who correctly guessed Phillips 66 ( NYSE:PSX ), IBM ( NYSE:IBM ) and Kraft Heinz Co. ( NASDAQ:KHC ).
|
356ac293-fb5f-413f-9126-2bc99b3db77b
|
722734.0
|
2015-11-18 00:00:00 UTC
|
These 5 Companies Own 16% of General Electric's Stock
|
DE
|
https://www.nasdaq.com/articles/these-5-companies-own-16-general-electrics-stock-2015-11-18
|
nan
|
nan
|
Image credit: General Electric .
The ongoing divestiture of General Electric 's finance unit hasn't soured appetite for its stock among the nation's biggest and most sophisticated investors. Its top five shareholders control $48.8 billion worth of its outstanding common stock, equating to an ownership interest of 15.9%.
There's no question that this is a large stake, but it's still meaningfully smaller than combined positions of the five biggest shareholders of other large publicly traded companies, such as General Motors and Deere & Co. :
General Motors' five biggest shareholders control 20% of the automaker's outstanding stock. That equates to $9.5 billion worth of General Motors shares.
Deere & Co.'s five biggest stockholders own 21.1% of its stock. The total dollar value of their stakes translates into $5.8 billion worth of Deere & Co. shares.
So, who are General Electric's five biggest shareholders? You can find the answer to this question in the brief slideshow below.
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 .
Data in the slideshow, as well as the ownership data about General Motors and Deere & Co., was sourced from Yahoo! Finance on Nov. 16, 2015.
The article These 5 Companies Own 16% of General Electric's Stock originally appeared on Fool.com.
John Maxfield has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company. 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 - 2015 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.
|
Its top five shareholders control $48.8 billion worth of its outstanding common stock, equating to an ownership interest of 15.9%. There's no question that this is a large stake, but it's still meaningfully smaller than combined positions of the five biggest shareholders of other large publicly traded companies, such as General Motors and Deere & Co. : General Motors' five biggest shareholders control 20% of the automaker's outstanding stock. Deere & Co.'s five biggest stockholders own 21.1% of its stock.
|
Its top five shareholders control $48.8 billion worth of its outstanding common stock, equating to an ownership interest of 15.9%. There's no question that this is a large stake, but it's still meaningfully smaller than combined positions of the five biggest shareholders of other large publicly traded companies, such as General Motors and Deere & Co. : General Motors' five biggest shareholders control 20% of the automaker's outstanding stock. Deere & Co.'s five biggest stockholders own 21.1% of its stock.
|
There's no question that this is a large stake, but it's still meaningfully smaller than combined positions of the five biggest shareholders of other large publicly traded companies, such as General Motors and Deere & Co. : General Motors' five biggest shareholders control 20% of the automaker's outstanding stock. Its top five shareholders control $48.8 billion worth of its outstanding common stock, equating to an ownership interest of 15.9%. Deere & Co.'s five biggest stockholders own 21.1% of its stock.
|
There's no question that this is a large stake, but it's still meaningfully smaller than combined positions of the five biggest shareholders of other large publicly traded companies, such as General Motors and Deere & Co. : General Motors' five biggest shareholders control 20% of the automaker's outstanding stock. So, who are General Electric's five biggest shareholders? Its top five shareholders control $48.8 billion worth of its outstanding common stock, equating to an ownership interest of 15.9%.
|
9ff58d20-703a-4890-8fd6-3baa8d159b7f
|
722735.0
|
2015-11-12 00:00:00 UTC
|
Diamond Hill Adds to Stake in Automotive Parts Company
|
DE
|
https://www.nasdaq.com/articles/diamond-hill-adds-stake-automotive-parts-company-2015-11-12
|
nan
|
nan
|
Diamond Hill Capital ( Trades , Portfolio )'s bottom-up investment approach produces some good returns via its Small Cap Fund. The Fund posted returns of 4.6% last year, but its best year of late was 2013, when its returns were nearly 40%.
Diamond Hill's most significant third-quarter transaction was the addition of 4,592,212 shares to its stake in BorgWarner Inc. ( NYSE:BWA ), an Auburn Hills, Mich.-based supplier of automotive components and parts, for an average price of $47.22 per share. The transaction had a 1.32% impact on Diamond Hill's portfolio.
Warning! GuruFocus has detected 4 Warning Signs with LSE:BKIR. Click here to check it out.
LSE:BKIR 15-Year Financial Data
The intrinsic value of LSE:BKIR
Peter Lynch Chart of LSE:BKIR
Warning! GuruFocus has detected 2 Warning Sign with WMIH. Click here to check it out.
WMIH 15-Year Financial Data
The intrinsic value of WMIH
Peter Lynch Chart of WMIH
Warning! GuruFocus has detected 7 Warning Signs with GPN. Click here to check it out.
GPN 15-Year Financial Data
The intrinsic value of GPN
Peter Lynch Chart of GPN
Warning! GuruFocus has detected 7 Warning Signs with BP. Click here to check it out.
BP 15-Year Financial Data
The intrinsic value of BP
Peter Lynch Chart of BP
Warning! GuruFocus has detected 7 Warning Signs with BP. Click here to check it out.
BWA 15-Year Financial Data
The intrinsic value of BWA
Peter Lynch Chart of BWA
BorgWarner has a market cap of $9.19 billion and an enterprise value of $10.04 billion. It has a P/E of 14.8, a forward P/E of 12.0, a P/B of 2.5 and a P/S of 1.2. GuruFocus has given BorgWarner a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.
Diamond Hill is BorgWarner's leading shareholder among the gurus. Mario Gabelli (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Chuck Royce (Trades, Portfolio), John Burbank (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) also have shares of BorgWarner in their portfolios.
Thursday afternoon BorgWarner sold for $40.99 per share.
Diamond Hill also increased its stake in Loews Corp. ( L ), a New York-based conglomerate, by nearly 18,829% with the purchase of 4,363,037 shares for an average price of $37.43 per share. The deal had a 1.09% impact on Diamond Hill's portfolio.
Loews has a market cap of $13.17 billion and an enterprise value of $23.94 billion. It has a P/E of 20.6, a forward P/E of 14.1, a P/B of 0.7 and a P/S of 1.0. GuruFocus has given Loews a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Mason Hawkins (Trades, Portfolio), Chris Davis (Trades, Portfolio), Brian Rogers (Trades, Portfolio), James Barrow (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Donald Smith (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Murray Stahl (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), John Burbank (Trades, Portfolio) and Dodge & Cox have shares of Loews in their portfolios.
Loews sold for $37.16 per share Thursday afternoon.
Diamond Hill reduced its stake in Dover Corp. ( DOV ), a Downers Grove, Ill.-based conglomerate, by 2,268,438 shares. Diamond Hill sold the shares for an average price of $62.7 per share with a -1.06% impact on its portfolio.
Dover has a market cap of $9.87 billion and an enterprise value of $11.89 billion. It has a P/E of 11.4, a forward P/E of 15.7, a P/B of 2.8 and a P/S of 1.4. GuruFocus has given Dover a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
Richard Pzena (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Tom Russo (Trades, Portfolio) and Ray Dalio (Trades, Portfolio) have shares of Dover in their portfolios.
Thursday afternoon Dover sold for $63.98 per share.
Diamond Hill reduced its stake in Devon Energy Corp. ( DVN ), an Oklahoma City-based oil and gas company, by more than 57%, selling 1,857,888 shares for an average price of $45.89 per share. The transaction had a -0.74% impact on Diamond Hill's portfolio.
Devon Energy has a market cap of $18.43 billion and an enterprise value of $32.92 billion. It has a forward P/E of 73, a P/B of 1.6 and a P/S of 1.1. GuruFocus has given Devon Energy a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
First Eagle Investment (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, Richard Snow (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Chris Davis (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Ray Dalio (Trades, Portfolio), David Dreman (Trades, Portfolio), Michael Price (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio) have shares of Devon Energy in their portfolios.
Devon Energy sold for $45.72 per share Thursday afternoon.
Diamond Hill sold its 1,764,756-share stake in Baxter International Inc. ( BAX ), a Deerfield, Ill.-based medical equipment company, for an average price of $37.85 per share. The deal had a -0.37% impact on Diamond Hill's portfolio.
Baxter International has a market cap of $20.52 billion and an enterprise value of $20.12 billion. It has a P/E of 11.9, a forward P/E of 27, a P/B of 2.6 and a P/S of 1.3. GuruFocus has given Baxter International a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
Vanguard Health Care Fund (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Bill Frels (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, First Eagle Investment (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Manning & Napier Advisors Inc., Jeremy Grantham (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), John Buckingham (Trades, Portfolio), John Rogers (Trades, Portfolio), John Keeley (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Dodge & Cox and John Hussman (Trades, Portfolio) have shares of Baxter International in their portfolios.
Thursday afternoon Baxter International sold for $37.46 per share.
Diamond Hill sold its 641,994-share stake in Catamaran Corp. (NASDAQ:CTRX), a Schaumburg, Ill.-based pharmacy benefit management company, for an average price of $61.33 per share. The transaction had a -0.26% impact on Diamond Hill's portfolio.
Catamaran has a market cap of $12.79 billion and an enterprise value of $13.36 billion. It has a P/E of 42.6, a forward P/E of 21.6, a P/B of 2.5 and a P/S of 0.6. GuruFocus has given Catamaran a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Eric Mindich (Trades, Portfolio), Jim Simons (Trades, Portfolio), Wallace Weitz (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio) and Prem Watsa (Trades, Portfolio) have shares of Catamaran in their portfolios.
Catamaran sold for $61.47 per share Thursday.
Diamond Hill bought a 673,243-share stake in Deere & Co. ( DE ), a Moline, Ill.-based heavy equipment company, for an average price of $87.98 per share. The deal had a 0.25% impact on Diamond Hill's portfolio.
Deere has a market cap of $24.04 billion and an enterprise value of $56.64 billion. It has a P/E of 11.3, a forward P/E of 16.5, a P/B of 3.1 and a P/S of 0.8. GuruFocus has given Deere a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10.
Warren Buffett (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), James Barrow (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Steven Cohen (Trades, Portfolio), John Buckingham (Trades, Portfolio), Manning & Napier Advisors Inc., Dodge & Cox and Paul Tudor Jones (Trades, Portfolio) have shares of Deere in their portfolios.
Thursday afternoon Deere sold for $73.27 per share.
To view the portfolios of more gurus, visit theList of Guruspage. Not a premium member of GuruFocus? Try it free for 7 days.
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.
|
Diamond Hill Capital ( Trades , Portfolio )'s bottom-up investment approach produces some good returns via its Small Cap Fund. GuruFocus has detected 7 Warning Signs with BP. Diamond Hill sold its 1,764,756-share stake in Baxter International Inc. ( BAX ), a Deerfield, Ill.-based medical equipment company, for an average price of $37.85 per share.
|
GuruFocus has detected 7 Warning Signs with BP. Mason Hawkins (Trades, Portfolio), Chris Davis (Trades, Portfolio), Brian Rogers (Trades, Portfolio), James Barrow (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Donald Smith (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Murray Stahl (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), John Burbank (Trades, Portfolio) and Dodge & Cox have shares of Loews in their portfolios. First Eagle Investment (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, Richard Snow (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Chris Davis (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Ray Dalio (Trades, Portfolio), David Dreman (Trades, Portfolio), Michael Price (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio) have shares of Devon Energy in their portfolios.
|
GuruFocus has detected 7 Warning Signs with BP. Mason Hawkins (Trades, Portfolio), Chris Davis (Trades, Portfolio), Brian Rogers (Trades, Portfolio), James Barrow (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Donald Smith (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Murray Stahl (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), John Burbank (Trades, Portfolio) and Dodge & Cox have shares of Loews in their portfolios. First Eagle Investment (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, Richard Snow (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Chris Davis (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Ray Dalio (Trades, Portfolio), David Dreman (Trades, Portfolio), Michael Price (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio) have shares of Devon Energy in their portfolios.
|
GuruFocus has detected 7 Warning Signs with BP. Diamond Hill sold its 1,764,756-share stake in Baxter International Inc. ( BAX ), a Deerfield, Ill.-based medical equipment company, for an average price of $37.85 per share. Diamond Hill Capital ( Trades , Portfolio )'s bottom-up investment approach produces some good returns via its Small Cap Fund.
|
8c244a29-150b-4503-b7a7-a98ff7b5578d
|
722736.0
|
2015-11-08 00:00:00 UTC
|
The Best Stocks in Construction Machinery
|
DE
|
https://www.nasdaq.com/articles/best-stocks-construction-machinery-2015-11-08
|
nan
|
nan
|
Ask any boy you know if it's fun to watch construction equipment at work. Heck, ask any grown man the same question and you'll get the same answer. The giant machines made by companies such as Caterpillar , Deere & Company , and Terex Corporation are larger-than-life feats of human ingenuity. These three companies, by the way, also happen to be some of the best stocks in construction machinery.
The yellow one
Caterpillar's products are almost instantly recognizable because of their yellow color. Although it doesn't own the color, it's as much a part of the company's brand identity as the famous "Cat" logo. Cat's products span from backhoes to mining equipment, and it's known for high-quality and strong customer support, backed by a global sales network with nearly 180 dealers and over 160,000 dealer employees.
A Caterpillar tractor. Source: Caterpillar.
Cat knows being an industry leader is more than just building and selling high-quality products. If its machines aren't working, its customers aren't working. So the support network it's created is really about building relationships and, more important, a durable strategic advantage over smaller players that can't provide the same level of service to keep their customers up and running at all times.
The slowdown in China's economic growth has pushed Cat and other construction equipment makers' sales into low gear. Cat's top line fell in 2013 and 2014, and 2015 and 2016 look like they'll be rough, too. But the company has remained quite profitable throughout this downturn, which is a testament to its financial strength. Cat is easily one of the world's leading construction machinery makers, and it looks strong enough to survive this downturn, which means it could be a contrarian opportunity for those willing to go against the grain.
The green one
Just as yellow is associated with Cat, green is usually associated with Deere & Co., only Deere is best known for farm equipment. But that's not all it does. Nearly $7 billion of revenue, about 20% of the top line, comes from the company's Construction & Forestry division. Construction accounts for around two-thirds of that revenue.
Obviously, the farming market will have a bigger impact on Deere's results for years to come. But it's using its know-how in that area to expand beyond the farm. And Deere's reputation and support is just as strong as Cat's, so there's good reason to believe that it will increasingly become a formidable competitor.
Like Cat, however, Deere is feeling the pinch of weak demand, as falling commodity prices have led its customers to pull back. Yup, farms are being pinched, too. However, also like Cat, Deere remains quite profitable despite the tough environment. If you don't like Cat's focus on construction and mining, you might find Deere's farming and construction more to your liking. After all, eating is one thing that can never go out of style.
Going to different heights
But the giant earth-moving machines that Cat and Deere make aren't the only big construction machines you see at worksites. What about the cranes that tower high into the air? Those are often made by Terex. It doesn't have the same name recognition among little boys, but it's a leader at what it does, despite being a fraction of the size of the other two equipment makers.
Terex's specialty is best described as lifting equipment. And while it makes construction cranes, you'll also find its gear at seaports, in factories and warehouses, and even in cherry-picker trucks used by utilities to fix their power lines. That said, the company makes more than these things, including small-form construction gear similar to what Cat and Deere provide, as well as cement trucks and mining equipment. It's a pretty diversified business and a key player in the construction machinery industry because of its unique focus.
In fact, its niche skill in the lifting space is what makes it a worthwhile company for investors to look at. Keep in mind that its modest size relative to Cat and Deere increases risk to some degree because it has a little less breathing room on the top and bottom lines. Still, it has managed to keep its bottom line in the black for all but one year over the past decade (both Cat and Deere remained profitable throughout that span). So if you're looking for a construction player with a different twist, Terex might be worth a deeper dive.
These ain't toys
Cat, Deere, and Terex don't make toys. They make massive machines that do the type of work that makes little boys (and big ones) stop and watch with looks of awe and wonder. They also happen to be some of the best stocks in the construction machinery sector. Each is a little different and might appeal to different types of investors, but all would be a great way to gain exposure to this arena.
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 The Best Stocks in Construction Machinery originally appeared on Fool.com.
Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Terex. 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 - 2015 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.
|
So the support network it's created is really about building relationships and, more important, a durable strategic advantage over smaller players that can't provide the same level of service to keep their customers up and running at all times. That said, the company makes more than these things, including small-form construction gear similar to what Cat and Deere provide, as well as cement trucks and mining equipment. The giant machines made by companies such as Caterpillar , Deere & Company , and Terex Corporation are larger-than-life feats of human ingenuity.
|
If you don't like Cat's focus on construction and mining, you might find Deere's farming and construction more to your liking. Going to different heights But the giant earth-moving machines that Cat and Deere make aren't the only big construction machines you see at worksites. These ain't toys Cat, Deere, and Terex don't make toys.
|
If you don't like Cat's focus on construction and mining, you might find Deere's farming and construction more to your liking. Going to different heights But the giant earth-moving machines that Cat and Deere make aren't the only big construction machines you see at worksites. That said, the company makes more than these things, including small-form construction gear similar to what Cat and Deere provide, as well as cement trucks and mining equipment.
|
If you don't like Cat's focus on construction and mining, you might find Deere's farming and construction more to your liking. The giant machines made by companies such as Caterpillar , Deere & Company , and Terex Corporation are larger-than-life feats of human ingenuity. Although it doesn't own the color, it's as much a part of the company's brand identity as the famous "Cat" logo.
|
e705f1ab-6d33-45a3-8aa7-78cccc1773a0
|
722737.0
|
2015-10-26 00:00:00 UTC
|
Activision Blizzard, Deere, IBM and Valeant Pharmaceuticals International highlighted as Zacks Bull and Bear of the Day
|
DE
|
https://www.nasdaq.com/articles/activision-blizzard-deere-ibm-and-valeant-pharmaceuticals-international-highlighted-as
|
nan
|
nan
|
Chicago, IL - October 26, 2015- Zacks Equity Research highlights Activision Blizzard ( ATVI ) as the Bull of the Day and Deere & Company ( DE ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on IBM Corp. ( IBM ) and Valeant Pharmaceuticals International, Inc. ( VRX ).
Here is a synopsis of all four stocks:
Bull of the Day :
The video game market is booming and companies like Activision Blizzard ( ATVI ) have been huge beneficiaries. This video game maker, which is the developer and publisher of hit franchises like Call of Duty and Warcraft , has gained more than 70% so far this year while its shares have skyrocketed 213% in the past five years.
But the surge in ATVI isn't done yet as there is still plenty of growth left in this company. Earnings estimates are moving in the right direction ahead of the all-important holiday season, while ATVI has shown an impressive ability to crush estimates at earnings season too. This is vital considering that ATVI has an earnings report coming up in less than two weeks, suggesting that investors may want to take a closer look at this surging stock ahead of this key report.
Earnings Estimates & Surprise History
Investors haven't seen any of the analysts covering ATVI stock slash their estimates in the past sixty days. Instead, we have seen positive revisions which have helped to move the consensus estimate further in the right direction. In fact, we have seen both the current year and next year figures move higher of the past 90 days, while the next quarter period has also trended in the right direction as well.
The real key for ATVI is its performance in earnings season though, as the company proven to be a dynamo in this time. In three of the last four quarters, ATVI has more than doubled the Zacks Consensus Estimate including a nearly 150% average beat over the last four quarters. Activision Blizzard actually hasn't missed earnings estimates since late 2010 so the stock is definitely an intriguing choice heading into its early November earnings report.
Bear of the Day :
This has been an absolutely brutal time to be in the industrial or agricultural machinery business. Companies in this segment have been hit by weak demand at home, while a sluggish global economy has put a damper on growth abroad too. A poster child for this weakness is Deere & Company ( DE ) as the stock has declined about 13% in the past three months and is underperforming the S&P 500 on a year to date look too.
This weak performance isn't too surprising when you consider Deere's last earnings report. Earnings for Q3 2015 plunged 34% when compared to the previous year while sales were off more than 20% too. The pain doesn't end there though as the company is now looking for similar declines in both the fiscal and Q4 time frames, thanks in large part to awful sales projections for the Agriculture and Turf segment.
Earnings Estimates
Thanks to these projections from last quarter, analysts covering DE stock have been racing to slash their estimates for Deere & Company. In fact, in the last 60 days, we have seen one estimate go higher for the current year compared to eight lower, while the next year time frame has seen nine go lower over the past two months.
The magnitude of these revisions should also be troublesome to investors as the Zacks Consensus Estimate has crumbled from $5.65/share 90 days ago to $5.42/share today, while the next year time period and the current quarter estimates have fallen, respectively, 16% and 33% in the past ninety days as well.
Additional content:
Dow 30 Stock Roundup
The Dow experienced another mixed week, dominated by tech, biotech and healthcare stocks. The blue-chip index rose on Monday, banking on advances in biotech and technology companies. The Dow gained on Tuesday, dragged down by declines in biotech and healthcare stocks.
The blue-chip index declined on Wednesday, dragged down by healthcare and energy shares. The Dow ended Thursday higher, banking on the ECB's indication to extend stimulus measures, positive earnings results and upbeat economic data. The Dow has gained 1.6% during the first four trading days.
Last Week's Performance
The Dow rose 0.1% on Monday, banking on advances in biotech and technology companies. However, a drop in energy shares kept a lid on the gains. Energy shares fell due to decline in oil prices . Iran's oil minister's comments that the country will increase production by 500,000 barrels a day in the near term had a negative impact on oil prices.
Additionally, discouraging economic data from China also weighed on oil prices. China's economic growth declined below the 7% mark for the first time since 2009. However, the economy expanded at more than the 6.8% rate analysts had forecasted. The world's second largest economy had grown 7% in the previous two quarters.
Stocks ended in the red on Tuesday, dragged down by declines in biotech and healthcare stocks. A decline in IBM Corp.'s ( IBM ) quarterly revenues along with lowered earnings guidance for this year also had a negative impact on the broader markets. Shares of IBM declined 5.8% to $140.64, its lowest closing level since Oct 25, 2010. The Dow declined 0.1%.
Decline in biotech and healthcare companies dragged benchmarks into negative territory on Tuesday. Concerns about high drug pricing had a negative impact on these companies. United States Senator from Florida, Marco Rubio, said that drug manufacturers are getting involved in "pure profiteering" and that high drug prices threatens to "bankrupt our system."
The blue-chip index declined 0.3% on Wednesday. Stocks mostly ended Wednesday's volatile trading session in the red following declines in healthcare and energy shares. Healthcare stocks took a beating after short selling firm Citron Research alleged revenue-recognition improprieties by Valeant Pharmaceuticals International, Inc. ( VRX ).
Meanwhile, energy shares declined due to drop in oil prices. A bigger build in crude oil stockpiles dragged down oil prices. The Energy Information Administration reported that U.S. crude oil inventories increased by 8 million barrels during the week ending Oct 16, 2015. This was way above analysts' forecast of oil inventories increasing by 3.9 million barrels.
Stocks ended Thursday higher, banking on ECB's indication to extend stimulus measures, positive earnings results and upbeat economic data. Mario Draghi indicated that the central bank could expand its quantitative easing measures at its December meeting. The blue-chip index gained 1.9%.
Draghi said he would re-examine monetary policy since he believes that economic recovery and inflation in the Eurozone will be adversely affected by slow growth in emerging economies. He added that the Governing Council is willing to utilize all possible easing measures, including a further cut to the deposit rate.
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 >>
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today . Find out What is happening in the stock market today on zacks.com.
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
ACTIVISION BLZD (ATVI): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
VALEANT PHARMA (VRX): 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.
|
The pain doesn't end there though as the company is now looking for similar declines in both the fiscal and Q4 time frames, thanks in large part to awful sales projections for the Agriculture and Turf segment. The Dow ended Thursday higher, banking on the ECB's indication to extend stimulus measures, positive earnings results and upbeat economic data. Stocks ended Thursday higher, banking on ECB's indication to extend stimulus measures, positive earnings results and upbeat economic data.
|
The Dow ended Thursday higher, banking on the ECB's indication to extend stimulus measures, positive earnings results and upbeat economic data. Stocks ended Thursday higher, banking on ECB's indication to extend stimulus measures, positive earnings results and upbeat economic data. Click to get this free report ACTIVISION BLZD (ATVI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report VALEANT PHARMA (VRX): 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.Click to get this free report >> About the Bull and Bear of the Day Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months. Click to get this free report ACTIVISION BLZD (ATVI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report To read this article on Zacks.com click here. Chicago, IL - October 26, 2015- Zacks Equity Research highlights Activision Blizzard ( ATVI ) as the Bull of the Day and Deere & Company ( DE ) as the Bear of the Day.
|
Chicago, IL - October 26, 2015- Zacks Equity Research highlights Activision Blizzard ( ATVI ) as the Bull of the Day and Deere & Company ( DE ) as the Bear of the Day. This weak performance isn't too surprising when you consider Deere's last earnings report. Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >> About the Bull and Bear of the Day Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
|
fec04797-18b5-4c4b-8991-65177d117295
|
722738.0
|
2015-10-26 00:00:00 UTC
|
Bear of the Day: Deere (DE)
|
DE
|
https://www.nasdaq.com/articles/bear-day-deere-de-2015-10-26
|
nan
|
nan
|
This has been an absolutely brutal time to be in the industrial or agricultural machinery business. Companies in this segment have been hit by weak demand at home, while a sluggish global economy has put a damper on growth abroad too. A poster child for this weakness is Deere & Company ( DE ) as the stock has declined about 13% in the past three months and is underperforming the S&P 500 on a year to date look too.
This weak performance isn't too surprising when you consider Deere's last earnings report. Earnings for Q3 2015 plunged 34% when compared to the previous year while sales were off more than 20% too. The pain doesn't end there though as the company is now looking for similar declines in both the fiscal and Q4 time frames, thanks in large part to awful sales projections for the Agriculture and Turf segment.
Earnings Estimates
Thanks to these projections from last quarter, analysts covering DE stock have been racing to slash their estimates for Deere & Company. In fact, in the last 60 days, we have seen one estimate go higher for the current year compared to eight lower, while the next year time frame has seen nine go lower over the past two months.
The magnitude of these revisions should also be troublesome to investors as the Zacks Consensus Estimate has crumbled from $5.65/share 90 days ago to $5.42/share today, while the next year time period and the current quarter estimates have fallen, respectively, 16% and 33% in the past ninety days as well.
With such a bearish outlook, it shouldn't be surprising to note that DE has a Zacks Rank #5 (Strong Sell). And given the broad problems this space is facing, we should also point out that the Machinery-Farming segment is in the bottom 10% of all Zacks Industries too, suggesting more pain is likely to come for the sector.
Bottom Line
DE has seen some turbulent trading and it looks as if it might see more losses with its coming earnings report. But the segment isn't really a space you want to be in at all, as there are no companies currently ranked better than '3' right now in the industry.
If you are looking for a machinery company, it might be time to take a closer look at the small cap name of Columbus McKinnon ( CMCO ). This is also in the machinery world-material handling products-but the stock is actually in a top 20% industry with a top Zacks Rank #1 (strong buy) to boot. So if you are desperate for machinery stocks, consider looking beyond the more famous Deere and inspecting the top ranked CMCO instead this earnings season.
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
COLUMBUS MCKINN (CMCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Companies in this segment have been hit by weak demand at home, while a sluggish global economy has put a damper on growth abroad too. The pain doesn't end there though as the company is now looking for similar declines in both the fiscal and Q4 time frames, thanks in large part to awful sales projections for the Agriculture and Turf segment. A poster child for this weakness is Deere & Company ( DE ) as the stock has declined about 13% in the past three months and is underperforming the S&P 500 on a year to date look too.
|
Click to get this free report DEERE & CO (DE): Free Stock Analysis Report COLUMBUS MCKINN (CMCO): Free Stock Analysis Report To read this article on Zacks.com click here. Companies in this segment have been hit by weak demand at home, while a sluggish global economy has put a damper on growth abroad too. A poster child for this weakness is Deere & Company ( DE ) as the stock has declined about 13% in the past three months and is underperforming the S&P 500 on a year to date look too.
|
Earnings Estimates Thanks to these projections from last quarter, analysts covering DE stock have been racing to slash their estimates for Deere & Company. The magnitude of these revisions should also be troublesome to investors as the Zacks Consensus Estimate has crumbled from $5.65/share 90 days ago to $5.42/share today, while the next year time period and the current quarter estimates have fallen, respectively, 16% and 33% in the past ninety days as well. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report COLUMBUS MCKINN (CMCO): Free Stock Analysis Report To read this article on Zacks.com click here.
|
This weak performance isn't too surprising when you consider Deere's last earnings report. Companies in this segment have been hit by weak demand at home, while a sluggish global economy has put a damper on growth abroad too. A poster child for this weakness is Deere & Company ( DE ) as the stock has declined about 13% in the past three months and is underperforming the S&P 500 on a year to date look too.
|
b5db3fc1-0da7-445f-9263-7da5cd9df104
|
722739.0
|
2015-10-26 00:00:00 UTC
|
Undervalued Stocks With Growing Earnings Among Dodge & Cox's Holdings
|
DE
|
https://www.nasdaq.com/articles/undervalued-stocks-growing-earnings-among-dodge-coxs-holdings-2015-10-26
|
nan
|
nan
|
Dodge & Cox was founded in 1930 by Van Duyn Dodge and E. Morris Cox and employs a team research approach in making investment decisions.
The following are the most undervalued stocks on the hedge fund's portfolio that during the last five years have shown a strong growth rate on earnings per share ratio ( EPS ).
Apple Inc.
Apple 's ( AAPL ) EPS grew by 38.40% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $115.5 per share and is trading with a margin of safety of 53%.
The company designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players and sells a variety of related software, services, accessories, networking solutions and third-party digital content and applications. It posted an increase of 69% for international sales and gross margin was 40.8% compared to 39.3% in the year-ago quarter. For the third quarter Apple expects gross margin to be between 38.5% and 39.5%. The tremendous customer demand for Apple's products and services drove revenue growth of 27% and EPS growth of 40%.
Dodge & Cox Undervalued Stocks
Dodge & Cox Top Growth Companies
Dodge & Cox High Yield stocks
The stock is trading with a PE ratio of 13.33, and the price has been as high as $134.54 and as low as $92.00 in the last 52 weeks. It is currently 14.15% below its 52-week high and 25.54% above its 52-week low.
Apple's leading shareholder among the gurus is Carl Icahn ( Trades , Portfolio ) with 0.93% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.2% and Jeremy Grantham (Trades, Portfolio) with 0.14%.
Qualcomm Inc.
Qualcomm 's ( QCOM ) EPS grew by 31.70% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $60.43 and is trading with a margin of safety of 16%.
The company develops and commercializes digital communication technology called CDMA (Code Division Multiple Access) and owns intellectual property applicable to products that implement any version of CDMA including patents, patent applications and trade secrets. It posted a 47% year-over-year increase for net income and 44% increase for diluted earnings per share. The company returned $6.2 billion to stockholders, including $5.4 billion through repurchases of 63.7 million shares of common stock.
The stock is trading with a PE ratio of 16.55, and the price has been as high as $78.53 and as low as $52.17 in the last 52 weeks. It is currently 23.05% below its 52-week high and 15.83% above its 52-week low.
Jana Partners (Trades, Portfolio) is the main hedge fund holding shares of the company with 1.83% of outstanding shares, followed by guru James Barrow (Trades, Portfolio) with 1.21% and the firm PRIMECAP Management (Trades, Portfolio) with 1.08%.
Deere & Co.
Deere 's ( DE ) EPS grew by 31.30% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $79.35 and is trading with a margin of safety of 34%.
Deere is a provider of advanced products and services for agriculture and forestry and a provider of advanced products and services for construction, lawn and turf care, landscaping and irrigation. The company and its subsidiaries have operations that are categorized into three business segments: agriculture and turf; construction and forestry; and credit.
For the third quarter, worldwide net sales decreased 20% and revenues decreased 18% compared to the same quarter of the last year. These results reflected the continuing impact of the downturn in the farm economy as well as lower demand for construction equipment.
The stock is trading with a PE ratio of 12.21, and the price has been as high as $98.23 and as low as $71.85 in the last 52 weeks. It is currently 19.22% below its 52-week high and 10.44% above its 52-week low.
Warren Buffett (Trades, Portfolio) is the leading shareholder among the gurus with 5.27% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.39% and PRIMECAP Management (Trades, Portfolio) with 0.95%.
Comcast Corp.
Comcast 's ( CMCSK ) EPS grew by 22.60% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $62.35 and is trading with a margin of safety of 35%.
The company is a media and technology company with two main businesses, Comcast Cable and NBCUniversal. The company's present its operations in five reportable business segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks.
The second-quarter results demonstrate the strength and momentum across their businesses in which revenue Increased by 11.3%, operating cash flow increased 8.0%, and operating income increased 7.9%.
The stock is trading with a PE ratio of 18.30, and the price has been as high as $64.70 and as low as $51.26 in the last 52 weeks. It is currently 3.63% below its 52-week high and 21.63% above its 52-week low.
First Eagle Investment (Trades, Portfolio) is the main firm among shareholders of the company, holding 0.93% of outstanding shares, followed by HOTCHKIS & WILEY with 0.29% and Tom Russo (Trades, Portfolio) with 0.17%.
CarMax Inc.
CarMax 's ( KMX ) EPS grew by 14.20% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $58.05 and is trading with a margin of safety of 21%.
The company along with its subsidiaries is engaged in the sales of used vehicles in the United States. It operates in two reportable segments: CarMax Sales Operations and CarMax Auto Finance. The continued expansion of its store base and growth across its used, wholesale and CarMax Auto Finance operations all contributed to record second quarter earnings per share in which the company reported an increase of 7.9% for net sales and operating revenues. CarMax Auto Finance income increased 6.2%.
The stock is trading with a PE ratio of 19.70, and the price has been as high as $75.40 and as low as $52.32 in the last 52 weeks. It is currently 23.01% below its 52-week high and 10.95% above its 52-week low.
PRIMECAP Management (Trades, Portfolio) is the hedge fund that holds the most outstanding shares in the company, 6.61%. The second one is investor Chris Davis (Trades, Portfolio) with 5.49% followed by Tom Gayner (Trades, Portfolio) with 2.42%.
Anthem Inc.
Anthem 's (ANTM) EPS grew by 0.90% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $140.95 and is trading with a margin of safety of 10%.
Anthem, formerly WellPoint Inc., is an Indiana corporation incorporated on July 17, 2001. WellPoint is a health benefits company in terms of commercial membership in the United States, 37.5 million medical members. The company offers a spectrum of network-based managed care plans to the large and small employer, individual, Medicaid and senior markets.
The company had solid second quarter 2015 results and made progress towards driving greater health care access, affordability and choice. Adjusted net income had an increase of 21.1% compared to the same quarter of a year before and operating revenue increased by 8.4% compared to 2Q14.
The stock is trading with a PE ratio of 13.80, and the price has been as high as $173.59 and as low as $117.60 in the last 52 weeks. It is currently 18.80% below its 52-week high and 19.86% above its 52-week low.
James Barrow (Trades, Portfolio) is the leading shareholder among the gurus with 2.94% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 1.77%, Vanguard Health Care Fund (Trades, Portfolio) with 1.28% and Andreas Halvorsen (Trades, Portfolio) with a stake of 0.73% of outstanding shares started during the second quarter.
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.
|
The following are the most undervalued stocks on the hedge fund's portfolio that during the last five years have shown a strong growth rate on earnings per share ratio ( EPS ). The company had solid second quarter 2015 results and made progress towards driving greater health care access, affordability and choice. Dodge & Cox was founded in 1930 by Van Duyn Dodge and E. Morris Cox and employs a team research approach in making investment decisions.
|
Dodge & Cox Undervalued Stocks Dodge & Cox Top Growth Companies Dodge & Cox High Yield stocks The stock is trading with a PE ratio of 13.33, and the price has been as high as $134.54 and as low as $92.00 in the last 52 weeks. Jana Partners (Trades, Portfolio) is the main hedge fund holding shares of the company with 1.83% of outstanding shares, followed by guru James Barrow (Trades, Portfolio) with 1.21% and the firm PRIMECAP Management (Trades, Portfolio) with 1.08%. Warren Buffett (Trades, Portfolio) is the leading shareholder among the gurus with 5.27% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.39% and PRIMECAP Management (Trades, Portfolio) with 0.95%.
|
Dodge & Cox Undervalued Stocks Dodge & Cox Top Growth Companies Dodge & Cox High Yield stocks The stock is trading with a PE ratio of 13.33, and the price has been as high as $134.54 and as low as $92.00 in the last 52 weeks. Jana Partners (Trades, Portfolio) is the main hedge fund holding shares of the company with 1.83% of outstanding shares, followed by guru James Barrow (Trades, Portfolio) with 1.21% and the firm PRIMECAP Management (Trades, Portfolio) with 1.08%. James Barrow (Trades, Portfolio) is the leading shareholder among the gurus with 2.94% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 1.77%, Vanguard Health Care Fund (Trades, Portfolio) with 1.28% and Andreas Halvorsen (Trades, Portfolio) with a stake of 0.73% of outstanding shares started during the second quarter.
|
The following are the most undervalued stocks on the hedge fund's portfolio that during the last five years have shown a strong growth rate on earnings per share ratio ( EPS ). Dodge & Cox Undervalued Stocks Dodge & Cox Top Growth Companies Dodge & Cox High Yield stocks The stock is trading with a PE ratio of 13.33, and the price has been as high as $134.54 and as low as $92.00 in the last 52 weeks. Dodge & Cox was founded in 1930 by Van Duyn Dodge and E. Morris Cox and employs a team research approach in making investment decisions.
|
84bef378-2555-400e-91e0-746f0cc77e8f
|
722740.0
|
2015-10-22 00:00:00 UTC
|
The Long-Term Bullish Case for Deere
|
DE
|
https://www.nasdaq.com/articles/long-term-bullish-case-deere-2015-10-22
|
nan
|
nan
|
It's been a difficult year for investors in the agricultural machinery sector, as key crop prices have continued to fall, putting pressure on farmers' incomes and willingness to spend on new machinery. Consequently, the leading players in the industry, including Deere & Company , have underperformed the broader market. However, a recent report from PricewaterhouseCoopers titled "China's Agricultural Challenges" helps shed light on the long-term bullish case for buying agribusiness stocks. Let's look at the key arguments.
DE data by YCharts .
Near-term risk, long-term opportunity
In a previous article , I discussed some near-term risks for Deere. In particular, Deere's inventory-to-sales ratio is rising, and the company is increasingly leasing equipment, potentially putting pressure on future used-equipment prices.
But there's a case for the long-term prospects that centers on the idea that grain prices are likely to be driven higher by increasing demand from emerging markets such as China. The assumption is that as China's population gets increasingly wealthy and urbanized, its demand for protein-based calorie consumption will increase to Western levels.
The argument, repeated in the PwC report, is that "It takes approximately 7kg of feed grain to produce 1kg of beef, 4kg for 1kg of pork, and 2kg for 1kg of poultry." In other words, more protein consumed in the future could mean rising demand for grains such as corn, wheat, and soybeans. Since rising demand usually means higher prices and more acreage planted, it would be good news for Deere.
But how strong is the case?
The data
China's calorie consumption per capita has been rising in recent decades:
However, the key factor is rising animal calorie consumption. China is still 30% below the U.S. in this regard:
The general argument is that China's animal calorie intake will increase, leading to sharp rise in demand for feed grain. The PwC report assumes that China's meat consumption measured in kilograms per person per year will rise, from 57 kg in 2013 to 73 kg in 2025 -- approximating to current Taiwan levels.
The United States Department of Agriculture also looks into these matters, and its forecast is more conservative -- in the 60 kg to 70 kg range for China in 2025.
Moreover, even the more conservative USDA predicts that China will significantly increase its corn imports in the next decade.
A few concerns
First, there is no reason China's meat consumption will necessarily reach U.S. or even Taiwan levels. In fact, China's meat consumption of 57 kg per person per year in 2013 is already above Japan's 47 kg and Thailand's 27 kg, and it's not far off South Korea's 63 kg -- suggesting that it may not rise as much as the PwC and USDA forecast.
Second, the PwC report assumes that China's population (as well as the trend toward urbanization) will keep growing, and the decline in urban per capita direct grain consumption will level off. Both assumptions may not come true, or to the extent assumed.
Third, yield improvements could reduce the extra hectares needed to meet demand.
The takeaway
All told, the case for higher demand for grains in the future -- made by PwC and USDA -- is a compelling one and is based on extrapolating trends that are already in place. The corollary is that there will be upward pressure on prices and increased need for agricultural land -- an almost perfect scenario for Deere's long-term prospects.
On the other hand, Deere is facing near-term risks, and the assumption that China's meat consumption will necessarily rise to Western levels is open to question.
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 The Long-Term Bullish Case for Deere originally appeared on Fool.com.
Lee Samaha 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 - 2015 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.
|
The takeaway All told, the case for higher demand for grains in the future -- made by PwC and USDA -- is a compelling one and is based on extrapolating trends that are already in place. On the other hand, Deere is facing near-term risks, and the assumption that China's meat consumption will necessarily rise to Western levels is open to question. Consequently, the leading players in the industry, including Deere & Company , have underperformed the broader market.
|
The data China's calorie consumption per capita has been rising in recent decades: However, the key factor is rising animal calorie consumption. China is still 30% below the U.S. in this regard: The general argument is that China's animal calorie intake will increase, leading to sharp rise in demand for feed grain. On the other hand, Deere is facing near-term risks, and the assumption that China's meat consumption will necessarily rise to Western levels is open to question.
|
The data China's calorie consumption per capita has been rising in recent decades: However, the key factor is rising animal calorie consumption. China is still 30% below the U.S. in this regard: The general argument is that China's animal calorie intake will increase, leading to sharp rise in demand for feed grain. Consequently, the leading players in the industry, including Deere & Company , have underperformed the broader market.
|
The data China's calorie consumption per capita has been rising in recent decades: However, the key factor is rising animal calorie consumption. The article The Long-Term Bullish Case for Deere originally appeared on Fool.com. Consequently, the leading players in the industry, including Deere & Company , have underperformed the broader market.
|
93c72c7a-a05d-4cb1-9adb-1511c8a29ac2
|
722741.0
|
2015-10-21 00:00:00 UTC
|
Manitowoc (MTW) Shares Fall on Dismal Q3 & 2015 Outlook
|
DE
|
https://www.nasdaq.com/articles/manitowoc-mtw-shares-fall-on-dismal-q3-2015-outlook-2015-10-21
|
nan
|
nan
|
Shares of The Manitowoc Company, Inc.MTW dipped over 7.9% to close at $15.07 on Oct 15, as the maker of cranes and food and beverage equipment provided a bleak outlook for the third quarter as well as 2015 due to a dreary crane landscape. Shares of the company have dipped 7% since the announcement.
Manitowoc now expects enterprise net sales to be approximately $863 million in third-quarter 2015, a 13% decline from $986 million in the year-ago comparable period. Lower-than-anticipated tower and crawler crane shipments will hurt revenues in the third quarter. The company expects to report net earnings of approximately $5 million in the quarter compared with $73.1 million in the third quarter of 2014.
Given the lower expectations of earnings for the third quarter and a deteriorating demand environment in the Crane segment, particularly in the Middle East and Asia, Manitowoc trimmed its 2015 guidance for the Crane segment. The company now expects Cranes revenues to be down 15% to 20% year over year and operating margins to be in low single-digits. This cut is worse than the prior guidance of sales decline in double digits and operating margins in the mid-single-digit percentage range for the segment.
The company, however, retained its guidance for Foodservice. Revenues are expected to be approximately flat for 2015, while operating margins are estimated in the mid-teens percentage.
The company estimates capital expenditure for the year to be $70 million and depreciation and amortization of $110 million. Interest expenses are projected to be $90 million (higher than the previous $80 million projection). Manitowoc has set its target for end-of-year debt-to-EBITDA, which is at approximately 4.0.
Manitowoc has cut its outlook the second time this year. During the second-quarter conference call, the company had lowered its 2015 guidance citing a difficult oil and gas market as well as unfavorable foreign exchange rates.
Manitowoc remains prone to the impact of slump in crude oil prices on the crane market. Manitowoc's products are used in many energy-related industries, and as the price of crude oil drops, the number of projects needing crane lifting activities tends to slow. Moreover, the strengthening of the U.S. dollar against other global currencies remains a headwind. Global weakness continues to negatively impact the rough-terrain and boom-truck markets, primarily in North America and Latin America. U.S. permits, rig count and well starts, all important drivers for the North American crane market, have been declining since the second half of 2014 to levels lower than any time since the third quarter of 2009.
Last month, the world's largest maker of mining and construction equipment, Caterpillar Inc. CAT further cut down its revenue outlook for 2015 citing continued weakness in the mining industry due to global slump in commodities. This paints a gloomy picture for the mining industry as Caterpillar is a global supplier of mining and construction equipment, and often considered a bellwether of economic activities.
Caterpillar and Manitowoc's competitor, Joy Global Inc. JOY was also not spared from the impact of weak demand in the global mining market. The company recently reported a 32% drop in its adjusted third-quarter earnings and trimmed its earnings and revenue guidance for fiscal 2015. The company now expects fiscal 2015 revenues of $3.1 billion and adjusted earnings per share of $1.80.
Another competitor, Deere & Company DE anticipates equipment sales to decrease around 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter. Segment-wise, the company estimates Agriculture and Turf equipment sales to decline 25% in fiscal 2015 due to lower commodity prices and falling farm income, which will negatively impact agricultural machinery demand. Deere foresees global sales for Construction & Forestry equipment to be down about 5% in 2015 reflecting weakening conditions in the North American energy sector, as well as lower sales outside the U.S. and Canada.
In this scenario, these companies are left with no other option but to cut down costs to stay afloat. Manitowoc is taking a number of aggressive actions, including plant rationalization and right-sizing the business, to offset this decline in crane demand. The company had undertaken certain restructuring activities in the Foodservice segment and it is evident from the improving trends that these actions are beginning to show results. Further opportunities for margin improvement in Foodservice in 2015 are expected to be driven by factory consolidations, LEAN manufacturing initiatives, cost/price benefits, improvement in KitchenCare and workforce reduction.
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
CATERPILLAR INC (CAT): Free Stock Analysis Report
MANITOWOC INC (MTW): Free Stock Analysis Report
JOY GLOBAL INC (JOY): 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.
|
Manitowoc's products are used in many energy-related industries, and as the price of crude oil drops, the number of projects needing crane lifting activities tends to slow. U.S. permits, rig count and well starts, all important drivers for the North American crane market, have been declining since the second half of 2014 to levels lower than any time since the third quarter of 2009. Shares of The Manitowoc Company, Inc.MTW dipped over 7.9% to close at $15.07 on Oct 15, as the maker of cranes and food and beverage equipment provided a bleak outlook for the third quarter as well as 2015 due to a dreary crane landscape.
|
Segment-wise, the company estimates Agriculture and Turf equipment sales to decline 25% in fiscal 2015 due to lower commodity prices and falling farm income, which will negatively impact agricultural machinery demand. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report MANITOWOC INC (MTW): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of The Manitowoc Company, Inc.MTW dipped over 7.9% to close at $15.07 on Oct 15, as the maker of cranes and food and beverage equipment provided a bleak outlook for the third quarter as well as 2015 due to a dreary crane landscape.
|
Another competitor, Deere & Company DE anticipates equipment sales to decrease around 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report MANITOWOC INC (MTW): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of The Manitowoc Company, Inc.MTW dipped over 7.9% to close at $15.07 on Oct 15, as the maker of cranes and food and beverage equipment provided a bleak outlook for the third quarter as well as 2015 due to a dreary crane landscape.
|
Given the lower expectations of earnings for the third quarter and a deteriorating demand environment in the Crane segment, particularly in the Middle East and Asia, Manitowoc trimmed its 2015 guidance for the Crane segment. Manitowoc remains prone to the impact of slump in crude oil prices on the crane market. Shares of The Manitowoc Company, Inc.MTW dipped over 7.9% to close at $15.07 on Oct 15, as the maker of cranes and food and beverage equipment provided a bleak outlook for the third quarter as well as 2015 due to a dreary crane landscape.
|
a657de42-b9f3-466b-8bfb-731859d84401
|
722742.0
|
2015-10-13 00:00:00 UTC
|
Notable Tuesday Option Activity: ACN, DE, MCD
|
DE
|
https://www.nasdaq.com/articles/notable-tuesday-option-activity-acn-de-mcd-2015-10-13
|
nan
|
nan
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Accenture plc (Symbol: ACN), where a total of 21,461 contracts have traded so far, representing approximately 2.1 million underlying shares. That amounts to about 74.5% of ACN's average daily trading volume over the past month of 2.9 million shares. Particularly high volume was seen for the $60 strike call option expiring January 15, 2016 , with 3,310 contracts trading so far today, representing approximately 331,000 underlying shares of ACN. Below is a chart showing ACN's trailing twelve month trading history, with the $60 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 21,082 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 50.2% of DE's average daily trading volume over the past month, of 4.2 million shares. Especially high volume was seen for the $67.50 strike put option expiring December 18, 2015 , with 5,251 contracts trading so far today, representing approximately 525,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $67.50 strike highlighted in orange:
And McDonald's Corp (Symbol: MCD) options are showing a volume of 27,614 contracts thus far today. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.2% of MCD's average daily trading volume over the past month, of 5.9 million shares. Especially high volume was seen for the $103 strike put option expiring October 16, 2015 , with 9,076 contracts trading so far today, representing approximately 907,600 underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $103 strike highlighted in orange:
For the various different available expirations for ACN options , DE options , or MCD 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.
|
Particularly high volume was seen for the $60 strike call option expiring January 15, 2016 , with 3,310 contracts trading so far today, representing approximately 331,000 underlying shares of ACN. Especially high volume was seen for the $67.50 strike put option expiring December 18, 2015 , with 5,251 contracts trading so far today, representing approximately 525,100 underlying shares of DE. Especially high volume was seen for the $103 strike put option expiring October 16, 2015 , with 9,076 contracts trading so far today, representing approximately 907,600 underlying shares of MCD.
|
Below is a chart showing ACN's trailing twelve month trading history, with the $60 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 21,082 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 50.2% of DE's average daily trading volume over the past month, of 4.2 million shares. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.2% of MCD's average daily trading volume over the past month, of 5.9 million shares.
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Accenture plc (Symbol: ACN), where a total of 21,461 contracts have traded so far, representing approximately 2.1 million underlying shares. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 50.2% of DE's average daily trading volume over the past month, of 4.2 million shares. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.2% of MCD's average daily trading volume over the past month, of 5.9 million shares.
|
Particularly high volume was seen for the $60 strike call option expiring January 15, 2016 , with 3,310 contracts trading so far today, representing approximately 331,000 underlying shares of ACN. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.2% of MCD's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing MCD's trailing twelve month trading history, with the $103 strike highlighted in orange: For the various different available expirations for ACN options , DE options , or MCD options , visit StockOptionsChannel.com.
|
2d1a1c4b-1d08-41a1-9fd9-47f8714bcce3
|
722743.0
|
2015-10-11 00:00:00 UTC
|
3 Troubling Charts Deere & Company Investors Need to See
|
DE
|
https://www.nasdaq.com/articles/3-troubling-charts-deere-company-investors-need-see-2015-10-11
|
nan
|
nan
|
Deere & Company has had a tough year so far, with equipment sales slumping 22% and profits nearly halved during the nine months ended July. Fears of the company ending the year on a somber note has hit its stock, sending it lower by nearly 13% year to date, as of this writing. Being a John Deere investor clearly isn't easy, given how susceptible the farm-equipment business is to the vagaries of the commodities market.
Unfortunately, the worst may not be over yet. The latest figures and updates from the agricultural markets are anything but encouraging. In fact, just three charts sum up Deere's story: It's unpleasant. Take a look at the slideshow below to learn what the charts want to tell you about Deere's future.
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 .
3 Troubling Charts Deere & Company Investors Need to See from
The article 3 Troubling Charts Deere & Company Investors Need to See originally appeared on Fool.com.
Neha Chamaria 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 - 2015 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.
|
Deere & Company has had a tough year so far, with equipment sales slumping 22% and profits nearly halved during the nine months ended July. Being a John Deere investor clearly isn't easy, given how susceptible the farm-equipment business is to the vagaries of the commodities market. In fact, just three charts sum up Deere's story: It's unpleasant.
|
3 Troubling Charts Deere & Company Investors Need to See from The article 3 Troubling Charts Deere & Company Investors Need to See originally appeared on Fool.com. 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 has had a tough year so far, with equipment sales slumping 22% and profits nearly halved during the nine months ended July.
|
3 Troubling Charts Deere & Company Investors Need to See from The article 3 Troubling Charts Deere & Company Investors Need to See originally appeared on Fool.com. Deere & Company has had a tough year so far, with equipment sales slumping 22% and profits nearly halved during the nine months ended July. Being a John Deere investor clearly isn't easy, given how susceptible the farm-equipment business is to the vagaries of the commodities market.
|
Deere & Company has had a tough year so far, with equipment sales slumping 22% and profits nearly halved during the nine months ended July. 3 Troubling Charts Deere & Company Investors Need to See from The article 3 Troubling Charts Deere & Company Investors Need to See originally appeared on Fool.com. Being a John Deere investor clearly isn't easy, given how susceptible the farm-equipment business is to the vagaries of the commodities market.
|
2da6b354-5f03-4552-a310-6e9d6bd905fd
|
722744.0
|
2015-10-09 00:00:00 UTC
|
Zacks Earnings Trends Highlights: General Electric, Caterpillar, Deere and Joy Global
|
DE
|
https://www.nasdaq.com/articles/zacks-earnings-trends-highlights%3A-general-electric-caterpillar-deere-and-joy-global-2015
|
nan
|
nan
|
For Immediate Release
Chicago, IL - October 09, 2015 - Zacks Director of Research Sheraz Mian says, "The ramp-up of the Q3 earnings season in the coming days will put the spotlight on the weak state of corporate profitability."
Earnings Weakness Isn't Just Energy-Driven
The ramp up of the Q3 earnings season in the coming days will put the spotlight on the weak state of corporate profitability. Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines. The Energy sector is again the big drag, with overall Q3 earnings growth for the S&P 500 moving into modestly positive territory once the sector is excluded from the index.
The Energy drag notwithstanding, there is not much growth elsewhere either, with earnings growth for half of the 16 Zacks sectors expected to be in the negative for the quarter. The strong U.S. dollar and China-centric global growth questions are some of the key issues that will figure prominently in the earnings reports and management's outlook for the last quarter of the year. Current estimates for the fourth quarter already show negative growth for the quarter, which will likely fall further in the coming days as companies update their outlook on the earnings calls.
Total Q3 earnings for the S&P 500 index are expected to be down -5.7% from the same period last year on an equal decline in revenues. This would follow the -2.1% decline in earnings on -6.4% lower revenues in the preceding quarter. Driving this sub-par growth picture is a combination of global growth challenges, the Energy sector weakness and the strong U.S. dollar.
Please note that while the overall trend of negative estimate revisions is in-line with what we have been seeing in other recent quarters, the magnitude of negative revisions has been lower than what we have been seeing in the comparable periods for the last several quarters. In other words, estimates for the quarter came down, but they fell less than what we saw in the last few quarters.
As indicated earlier, the Energy sector remains the biggest drag in Q3, with total earnings for the sector expected to be down -65.0% on -37.2% lower revenues. Excluding this Energy sector drag, total earnings for the remainder of the S&P 500 index would be up +1.4% on -0.7% revenues.
Energy is no doubt a big drag, but there isn't much growth momentum in other sectors either. While Q3 earnings for half of the 16 Zacks sectors are expected to be below the year-earlier level, the declines are particularly notable for the Basic Materials (total sector earnings expected to be down -21.6%), Industrials (-23.6%) and Conglomerate (-15.1%) sectors. All of these sectors are heavily exposed to negative developments in the global commodities complex and uncertainty about the global economy, particularly in the emerging markets. The year-over-year earnings comparisons for all key players in these sectors like General Electric ( GE ), Caterpillar ( CAT ), Deere & Co. ( DE ) and Joy Global ( JOY ), just to name a few - don't look pretty.
There is not much growth expected in the last quarter of the year either. The chart below shows current consensus earnings growth expectations for the coming quarters contrasted with what is expected for Q3 and what was actually achieved in Q2. As you can see, this year has effectively been washed out, with growth expected to resume early next year and accelerate from there onwards. Total earnings for the S&P 500 index are effectively flat this year, but are expected to be up strong next year.
It is reasonable to be skeptical of next year's optimistic looking expectations given how the 2015 estimates evaporated in front of our eyes over the last two quarters. We know that sell-side analysts start out with optimistic projections for the outer periods.
To access the full Earnings Trends article, please click here .
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today . Find out What is happening in the stock market today on zacks.com.
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
GENL ELECTRIC (GE): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
JOY GLOBAL INC (JOY): 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.
|
Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines. The Energy sector is again the big drag, with overall Q3 earnings growth for the S&P 500 moving into modestly positive territory once the sector is excluded from the index. Total Q3 earnings for the S&P 500 index are expected to be down -5.7% from the same period last year on an equal decline in revenues.
|
The year-over-year earnings comparisons for all key players in these sectors like General Electric ( GE ), Caterpillar ( CAT ), Deere & Co. ( DE ) and Joy Global ( JOY ), just to name a few - don't look pretty. Click to get this free report GENL ELECTRIC (GE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines.
|
While Q3 earnings for half of the 16 Zacks sectors are expected to be below the year-earlier level, the declines are particularly notable for the Basic Materials (total sector earnings expected to be down -21.6%), Industrials (-23.6%) and Conglomerate (-15.1%) sectors. Click to get this free report GENL ELECTRIC (GE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines.
|
Click to get this free report GENL ELECTRIC (GE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines. The Energy sector is again the big drag, with overall Q3 earnings growth for the S&P 500 moving into modestly positive territory once the sector is excluded from the index.
|
b4ed9d09-8c58-4d9f-8bca-83619cc80886
|
722745.0
|
2015-10-09 00:00:00 UTC
|
Deere-DN2K to Form Joint Venture for Assisting Growers
|
DE
|
https://www.nasdaq.com/articles/deere-dn2k-to-form-joint-venture-for-assisting-growers-2015-10-09
|
nan
|
nan
|
Deere & CompanyDE has agreed to form a joint venture (JV) with DN2K to design SageInsights, a software platform with data management tools, which will assist growers to better serve the agricultural industry.
Based in Greenwood Village, CO, DN2K's system connects technology and information through developing software-based systems to improve decision making process of farmers. Its MyAgCentral platform facilitates agriculture advisers to collect, organize and analyze machine-to -machine information and use it along with insights from other resources. Deere, on the other hand. manufactures agricultural equipment.
Per the JV, the two companies will integrate DN2K's MyAgCentral with Deere's Operations Center utilizing the Deere API. The JV will help Deere, majority owner of the joint venture, to expand its products and services for precision agriculture through SageInsights.
The SageInsights technology will further develop DN2K's existing cloud software platform, MyAgCentral. The technology will provide data management tools to producers and consultants so that they can use information from multiple sources to help farmers address the challenge of supplying food to the rising population.
Hence, the JV will connect people, equipment, technology and insights to help farmers. SageInsights can explore applications in the construction equipment industry while the parent company DN2K explores potential platform opportunities in other industries such as energy, oil and gas, and healthcare. Additional details on the deal have not yet been disclosed.
Deere's steady investment in new products and geographies will support long-term growth. The company expects to be solidly profitable driven 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 opportunity for Deere's growth.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada via branch offices as well as distributors and operates through dealers to resell products internationally.
At present, Deere has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the sector include ACCO Brands Corporation ACCO , Lakeland Industries Inc. LAKE and Columbus McKinnon Corporation CMCO . All these stocks carry a Zacks Rank #1 (Strong 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
DEERE & CO (DE): Free Stock Analysis Report
ACCO BRANDS CP (ACCO): Free Stock Analysis Report
COLUMBUS MCKINN (CMCO): Free Stock Analysis Report
LAKELAND INDS (LAKE): 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.
|
Deere & CompanyDE has agreed to form a joint venture (JV) with DN2K to design SageInsights, a software platform with data management tools, which will assist growers to better serve the agricultural industry. The technology will provide data management tools to producers and consultants so that they can use information from multiple sources to help farmers address the challenge of supplying food to the rising population. Further, favorable trends derived from a growing, more affluent and increasing population and rising living standards will provide ample opportunity for Deere's growth.
|
Deere & CompanyDE has agreed to form a joint venture (JV) with DN2K to design SageInsights, a software platform with data management tools, which will assist growers to better serve the agricultural industry. Some better-ranked stocks in the sector include ACCO Brands Corporation ACCO , Lakeland Industries Inc. LAKE and Columbus McKinnon Corporation CMCO . Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report COLUMBUS MCKINN (CMCO): Free Stock Analysis Report LAKELAND INDS (LAKE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Deere & CompanyDE has agreed to form a joint venture (JV) with DN2K to design SageInsights, a software platform with data management tools, which will assist growers to better serve the agricultural industry. Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report COLUMBUS MCKINN (CMCO): Free Stock Analysis Report LAKELAND INDS (LAKE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Deere & CompanyDE has agreed to form a joint venture (JV) with DN2K to design SageInsights, a software platform with data management tools, which will assist growers to better serve the agricultural industry. Based in Greenwood Village, CO, DN2K's system connects technology and information through developing software-based systems to improve decision making process of farmers. Deere, on the other hand.
|
83de72ea-8ceb-4348-9c18-dbb587931395
|
722746.0
|
2015-10-08 00:00:00 UTC
|
Earnings Weakness Isn't Just Energy Driven
|
DE
|
https://www.nasdaq.com/articles/earnings-weakness-isnt-just-energy-driven-2015-10-08
|
nan
|
nan
|
The following is an excerpt from this week's Earnings Trends article. To access the full piece, please click here .
The ramp up of the Q3 earnings season in the coming days will put the spotlight on the weak state of corporate profitability. Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines. The Energy sector is again the big drag, with overall Q3 earnings growth for the S&P 500 moving into modestly positive territory once the sector is excluded from the index.
The Energy drag notwithstanding, there is not much growth elsewhere either, with earnings growth for half of the 16 Zacks sectors expected to be in the negative for the quarter. The strong U.S. dollar and China-centric global growth questions are some of the key issues that will figure prominently in the earnings reports and management's outlook for the last quarter of the year. Current estimates for the fourth quarter already show negative growth for the quarter, which will likely fall further in the coming days as companies update their outlook on the earnings calls.
The chart below provides the weekly calendar for the Q3 earnings season
Total Q3 earnings for the S&P 500 index are expected to be down -5.7% from the same period last year on an equal decline in revenues. This would follow the -2.1% decline in earnings on -6.4% lower revenues in the preceding quarter. Driving this sub-par growth picture is a combination of global growth challenges, the Energy sector weakness and the strong U.S. dollar.
The chart below shows how earnings growth estimates for Q3 have evolved since the beginning of the quarter.
Please note that while the overall trend of negative estimate revisions is in-line with what we have been seeing in other recent quarters, the magnitude of negative revisions has been lower than what we have been seeing in the comparable periods for the last several quarters. In other words, estimates for the quarter came down, but they fell less than what we saw in the last few quarters.
As indicated earlier, the Energy sector remains the biggest drag in Q3, with total earnings for the sector expected to be down -65.0% on -37.2% lower revenues. Excluding this Energy sector drag, total earnings for the remainder of the S&P 500 index would be up +1.4% on -0.7% revenues.
Energy is no doubt a big drag, but there isn't much growth momentum in other sectors either. While Q3 earnings for half of the 16 Zacks sectors are expected to be below the year-earlier level, the declines are particularly notable for the Basic Materials (total sector earnings expected to be down -21.6%), Industrials (-23.6%) and Conglomerate (-15.1%) sectors. All of these sectors are heavily exposed to negative developments in the global commodities complex and uncertainty about the global economy, particularly in the emerging markets. The year-over-year earnings comparisons for all key players in these sectors like General Electric ( GE ), Caterpillar ( CAT ), Deere & Co. ( DE ) and Joy Global ( JOY ), just to name a few - don't look pretty.
There is not much growth expected in the last quarter of the year either. The chart below shows current consensus earnings growth expectations for the coming quarters contrasted with what is expected for Q3 and what was actually achieved in Q2. As you can see, this year has effectively been washed out, with growth expected to resume early next year and accelerate from there onwards. Total earnings for the S&P 500 index are effectively flat this year, but are expected to be up strong next year.
It is reasonable to be skeptical of next year's optimistic looking expectations given how the 2015 estimates evaporated in front of our eyes over the last two quarters. We know that sell-side analysts start out with optimistic projections for the outer periods.
To access the full Earnings Trends article, please click here .
Note : Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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
JOY GLOBAL INC (JOY): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines. The Energy sector is again the big drag, with overall Q3 earnings growth for the S&P 500 moving into modestly positive territory once the sector is excluded from the index. The chart below provides the weekly calendar for the Q3 earnings season Total Q3 earnings for the S&P 500 index are expected to be down -5.7% from the same period last year on an equal decline in revenues.
|
The year-over-year earnings comparisons for all key players in these sectors like General Electric ( GE ), Caterpillar ( CAT ), Deere & Co. ( DE ) and Joy Global ( JOY ), just to name a few - don't look pretty. Click to get this free report JOY GLOBAL INC (JOY): Free Stock Analysis Report GENL ELECTRIC (GE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines.
|
While Q3 earnings for half of the 16 Zacks sectors are expected to be below the year-earlier level, the declines are particularly notable for the Basic Materials (total sector earnings expected to be down -21.6%), Industrials (-23.6%) and Conglomerate (-15.1%) sectors. Click to get this free report JOY GLOBAL INC (JOY): Free Stock Analysis Report GENL ELECTRIC (GE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines.
|
The chart below provides the weekly calendar for the Q3 earnings season Total Q3 earnings for the S&P 500 index are expected to be down -5.7% from the same period last year on an equal decline in revenues. Total earnings for the S&P 500 index are expected to be below the year-earlier level in Q3 - the second quarter in a row of earnings declines. The Energy sector is again the big drag, with overall Q3 earnings growth for the S&P 500 moving into modestly positive territory once the sector is excluded from the index.
|
a832b7bb-d0f7-4dd7-a662-9af017b2bc19
|
722747.0
|
2015-10-06 00:00:00 UTC
|
Deere Reaches New Six-Year Labor Agreement with UAW
|
DE
|
https://www.nasdaq.com/articles/deere-reaches-new-six-year-labor-agreement-with-uaw-2015-10-06
|
nan
|
nan
|
Shares of Deere & CompanyDE have gained 5.7% since the company reached a new six-year labor agreement with the United Auto Workers (UAW) on Oct 1. The new agreement will replace the six-year master labor contract that expired at midnight on Sep 30.
The new contract covers approximately 10,000 manufacturing employees at 12 Deere facilities in Iowa, Illinois and Kansas. Locations covered by the agreement are Davenport, Ankeny, Dubuque, Ottumwa and Waterloo in Iowa. Illinois locations include the harvester works in East Moline, the Parts Distribution Center in Milan, and the Seeding Group and Cylinder Division in Moline. The Coffeyville Works in Kansas is also covered by the agreement.
Deere and UAW began negotiating in late August. The contract now awaits a ratification vote from the UAW members. Both parties have agreed to not comment publicly about other terms of the new agreement.
Deere has eliminated over 1,500 workers since 2014, citing weakening demand. On Jan 2015, Deere announced workforce adjustments at several factories in Iowa and Illinois as the company continues to align the size of its manufacturing workforce to market demand for products. The actions include indefinite layoffs at five locations as well as an extended inventory adjustment shutdown at another factory.
Despite falling profits, Deere expects net income of over $1.8 billion this year. The company remains optimistic about the long term, based on steady investment in new products and geographies. Further, favorable trends derived from a growing, more affluent and increasing population shows ample opportunity for Deere's growth.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada via branch offices as well as distributors and operates through dealers to resell products internationally.
At present, Deere has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the sector include Titan International Inc. TWI , Lakeland Industries Inc. LAKE and Columbus McKinnon Corporation CMCO . All these stocks carry a Zacks Rank #1 (Strong 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
DEERE & CO (DE): Free Stock Analysis Report
TITAN INTL INC (TWI): Free Stock Analysis Report
COLUMBUS MCKINN (CMCO): Free Stock Analysis Report
LAKELAND INDS (LAKE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of Deere & CompanyDE have gained 5.7% since the company reached a new six-year labor agreement with the United Auto Workers (UAW) on Oct 1. Further, favorable trends derived from a growing, more affluent and increasing population shows ample opportunity for Deere's growth. Some better-ranked stocks in the sector include Titan International Inc. TWI , Lakeland Industries Inc. LAKE and Columbus McKinnon Corporation CMCO .
|
Some better-ranked stocks in the sector include Titan International Inc. TWI , Lakeland Industries Inc. LAKE and Columbus McKinnon Corporation CMCO . Click to get this free report DEERE & CO (DE): Free Stock Analysis Report TITAN INTL INC (TWI): Free Stock Analysis Report COLUMBUS MCKINN (CMCO): Free Stock Analysis Report LAKELAND INDS (LAKE): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Deere & CompanyDE have gained 5.7% since the company reached a new six-year labor agreement with the United Auto Workers (UAW) on Oct 1.
|
Shares of Deere & CompanyDE have gained 5.7% since the company reached a new six-year labor agreement with the United Auto Workers (UAW) on Oct 1. On Jan 2015, Deere announced workforce adjustments at several factories in Iowa and Illinois as the company continues to align the size of its manufacturing workforce to market demand for products. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report TITAN INTL INC (TWI): Free Stock Analysis Report COLUMBUS MCKINN (CMCO): Free Stock Analysis Report LAKELAND INDS (LAKE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
On Jan 2015, Deere announced workforce adjustments at several factories in Iowa and Illinois as the company continues to align the size of its manufacturing workforce to market demand for products. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report TITAN INTL INC (TWI): Free Stock Analysis Report COLUMBUS MCKINN (CMCO): Free Stock Analysis Report LAKELAND INDS (LAKE): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Deere & CompanyDE have gained 5.7% since the company reached a new six-year labor agreement with the United Auto Workers (UAW) on Oct 1.
|
d588b57a-a32c-4680-ac4b-5072da1ac003
|
722748.0
|
2015-10-04 00:00:00 UTC
|
Robert Olstein Sells Jones Lang LaSalle, Deere & Co. in Second Quarter
|
DE
|
https://www.nasdaq.com/articles/robert-olstein-sells-jones-lang-lasalle-deere-co-second-quarter-2015-10-04
|
nan
|
nan
|
Robert A. Olstein is the chairman and CIO of the Olstein Financial Alert Fund ( OFALX ). His portfolio is composed of 121 stocks with a total value of $962 million. During the second quarter he reduced 25 of his existing stakes and sold out five of them. The following are the five stakes he sold out.
He sold out his stake in Jones Lang LaSalle Inc. ( JLL ) with an impact of 0.66% on his portfolio.
The company is a financial and professional services firm specializing in real estate. It offers integrated services delivered by teams to clients seeking increased value by owning, occupying or investing in real estate.
During the last quarter, adjusted earnings per share was up 33 cents from the prior year and revenue was up by 17% compared to 2Q14.
Larry Robbins Undervalued Stocks
Larry Robbins Top Growth Companies
Larry Robbins High Yield stocks
Robert Olstein Undervalued Stocks
Robert Olstein Top Growth Companies
Robert Olstein High Yield stocks
The stock is trading with a P/E ratio of 15.12 and has been as high as $179.97 and as low as $118.79 in the past year. It is currently 20.19% below its 52-week high and 20.91% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 3%.
John Rogers ( Trades , Portfolio ) is the main guru shareholder of the company with 3.07% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 1.78% and Meridian Funds (Trades, Portfolio) with 1.32% of outstanding shares.
Olstein sold out his stake in Avery Dennison Corp. ( AVY ) with an impact of 0.58% on his portfolio.
The company's businesses include the production of pressure-sensitive materials, office products and a variety of tickets, tags, labels and other converted products. Its reporting segments are Pressure-sensitive Materials, Retail Information Services and Retail Branding and Information Solutions.
The company reported net sales had declined 6% from the prior year quarter. During the first half of year, AVY repurchased 1.1 million shares and paid $66 million in dividends.
The stock is trading with a P/E ratio of 20.14 and has been as high as $64.81 and as low as $40.58 in the past year. It is currently 10.28% below its 52-week high and 43.30% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 36%.
Jim Simons (Trades, Portfolio) is the main guru shareholder of the company with 0.86% of outstanding shares, followed by the hedge fund NWQ Managers (Trades, Portfolio), which holds 0.54% of outstanding shares, and RS Investment Management (Trades, Portfolio) with 0.31%.
He also sold out his stake in Deere & Co. ( DE ) with an impact of 0.40% on his portfolio.
The company is a provider of advanced products and services for agriculture and forestry, as well as advanced products and services for construction, lawn and turf care, landscaping and irrigation.
The company reported net income had decreased by 62 cents per share, while worldwide net sales decreased 18% from the year-ago quarter.
The stock is trading with a P/E ratio of 11.15 and has been as high as $98.23 and as low as $72.19 in the past year. It is currently 25.80% below its 52-week high and 0.97% above its 52-week low. According to the DCF calculator, the company currently looks undervalued by 40%.
Warren Buffett (Trades, Portfolio) is the main guru shareholder of the company with 5.27% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.39% and PRIMECAP Management (Trades, Portfolio) with 0.84% of outstanding shares.
He sold out his stake in Culp Inc. ( CFI ) with an impact of 0.31% on his portfolio.
The company manufactures, sources and markets mattress fabrics used for covering mattresses, box springs, and foundations and upholstery fabrics for use in production of upholstered furniture. It has two operating segments - mattress fabrics and upholstery fabrics.
The company reported the highest sales level in 10 years with an increase of 4.8%. Mattress fabric sales were up 6.7%, and upholstery fabric sales were up 2.3% compared with the same quarter last year. Pre-tax income had increased by 1.6%.
The company's financial position remained strong with cash and cash equivalents and short term investments of $35.3 million. It also reported a 20% increase in its quarterly cash dividend from 5 cents to 6 cents per share.
The stock is trading with a P/E ratio of 23.97 and has been as high as $35.23 and as low as $17.29 in the past year. It is currently 9.82% below its 52-week high and 83.75% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 63%.
Jim Simons (Trades, Portfolio) is the main guru shareholder of the company with 5.94% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 2.90% and John Keeley (Trades, Portfolio) with 0.45% of outstanding shares.
Olstein also sold his stake in Steelcase Inc. ( SCS ) with an impact of 0.07% on his portfolio.
The company is engaged in furnishing the work experience in business, education and healthcare environments.
EPS increased by 25% compared to the year-ago quarter. The company is expecting to report EPS between 29 cents to 33 cents for the third quarter. This was a remarkable quarter for the Americas segment, as adjusted operating margin reached a new 15-year high.
The stock is trading with a P/E ratio of 25.40 and has been as high as $20.45 and as low as $15.13 in the past year. It is currently 9.24% below its 52-week high and 22.67% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 70%.
RS Investment Management (Trades, Portfolio) is the main guru shareholder with 1.87% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 1.45% and Meridian Funds (Trades, Portfolio) with 0.84%.
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.
|
It offers integrated services delivered by teams to clients seeking increased value by owning, occupying or investing in real estate. Larry Robbins Undervalued Stocks Larry Robbins Top Growth Companies Larry Robbins High Yield stocks Robert Olstein Undervalued Stocks Robert Olstein Top Growth Companies Robert Olstein High Yield stocks The stock is trading with a P/E ratio of 15.12 and has been as high as $179.97 and as low as $118.79 in the past year. John Rogers ( Trades , Portfolio ) is the main guru shareholder of the company with 3.07% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 1.78% and Meridian Funds (Trades, Portfolio) with 1.32% of outstanding shares.
|
Larry Robbins Undervalued Stocks Larry Robbins Top Growth Companies Larry Robbins High Yield stocks Robert Olstein Undervalued Stocks Robert Olstein Top Growth Companies Robert Olstein High Yield stocks The stock is trading with a P/E ratio of 15.12 and has been as high as $179.97 and as low as $118.79 in the past year. Jim Simons (Trades, Portfolio) is the main guru shareholder of the company with 5.94% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 2.90% and John Keeley (Trades, Portfolio) with 0.45% of outstanding shares. RS Investment Management (Trades, Portfolio) is the main guru shareholder with 1.87% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 1.45% and Meridian Funds (Trades, Portfolio) with 0.84%.
|
Larry Robbins Undervalued Stocks Larry Robbins Top Growth Companies Larry Robbins High Yield stocks Robert Olstein Undervalued Stocks Robert Olstein Top Growth Companies Robert Olstein High Yield stocks The stock is trading with a P/E ratio of 15.12 and has been as high as $179.97 and as low as $118.79 in the past year. Jim Simons (Trades, Portfolio) is the main guru shareholder of the company with 0.86% of outstanding shares, followed by the hedge fund NWQ Managers (Trades, Portfolio), which holds 0.54% of outstanding shares, and RS Investment Management (Trades, Portfolio) with 0.31%. Warren Buffett (Trades, Portfolio) is the main guru shareholder of the company with 5.27% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.39% and PRIMECAP Management (Trades, Portfolio) with 0.84% of outstanding shares.
|
It also reported a 20% increase in its quarterly cash dividend from 5 cents to 6 cents per share. It offers integrated services delivered by teams to clients seeking increased value by owning, occupying or investing in real estate. Larry Robbins Undervalued Stocks Larry Robbins Top Growth Companies Larry Robbins High Yield stocks Robert Olstein Undervalued Stocks Robert Olstein Top Growth Companies Robert Olstein High Yield stocks The stock is trading with a P/E ratio of 15.12 and has been as high as $179.97 and as low as $118.79 in the past year.
|
08dcdfda-835a-466c-a16b-12018afb578b
|
722749.0
|
2015-09-29 00:00:00 UTC
|
Why Illinois Tool Works is a Top 25 SAFE Dividend Stock (ITW)
|
DE
|
https://www.nasdaq.com/articles/why-illinois-tool-works-top-25-safe-dividend-stock-itw-2015-09-29
|
nan
|
nan
|
Illinois Tool Works, Inc. (Symbol: 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 2.7% 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, Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 0.91% of the SPDR S&P Dividend ETF ( SDY ), which holds $108,460,616 worth of ITW shares.
Illinois Tool Works, Inc. (Symbol: ITW) made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S . Solid return - hefty yield and strong DividendRank characteristics; A. Accelerating amount - consistent dividend increases over time; F . Flawless history - never a missed or lowered dividend; E. Enduring - at least two decades of dividend payments.
The annualized dividend paid by Illinois Tool Works, Inc. is $2.20/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 09/28/2015. 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 ).
Top 25 S.A.F.E. Dividend Stocks Increasing Payments For Decades »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Illinois Tool Works, Inc. (Symbol: ITW) made the "Dividend Channel S.A.F.E. 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 ).
|
Illinois Tool Works, Inc. (Symbol: ITW) has been named to the Dividend Channel ''S.A.F.E. Illinois Tool Works, Inc. (Symbol: ITW) made the "Dividend Channel S.A.F.E. Dividend Stocks Increasing Payments For Decades » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 2.7% 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, Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 0.91% of the SPDR S&P Dividend ETF ( SDY ), which holds $108,460,616 worth of ITW shares. Dividend Stocks Increasing Payments For Decades » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Illinois Tool Works, Inc. (Symbol: 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 2.7% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report. Illinois Tool Works, Inc. (Symbol: ITW) made the "Dividend Channel S.A.F.E.
|
c90404d7-7a31-4c84-a104-f64a54db903f
|
722750.0
|
2015-09-29 00:00:00 UTC
|
Caterpillar (CAT) Hits Rough Waters; Takes Peers Along
|
DE
|
https://www.nasdaq.com/articles/caterpillar-cat-hits-rough-waters-takes-peers-along-2015-09-29
|
nan
|
nan
|
Caterpillar Inc. 's CAT share price plunged to a new 52-week low of $62.99 on Sep 29, before closing higher at $63.79. Shares of this mining and construction equipment behemoth have lost 9% of their value since its guidance cut announcement on Sep 24 amid weakness in its main industry sectors, mining and energy. The company's share price fell nearly 6.3% in a day following the news and hit a 52-week low of $64.65. Year to date, Caterpillar shares have yielded a negative return of roughly 28.53%.
For 2015, the company expects revenues of $48 billion; $1 billion lower than the previous expectation due to broadly weaker business conditions across its three large segments - Construction Industries, Energy & Transportation and Resource Industries. For 2016, the company expects sales to be 5% below 2015 levels with decline across all three of its aforementioned major segments. The most significant decline is anticipated in the oil and gas portion of the Energy and Transportation segment. If this materializes, the company's revenue would drop for four years in a row for the first time in its nine-decade long operations.
Caterpillar's sales continue to bear the brunt of weak mining demand as mining companies keep on reducing their capital expenditures. Lower oil prices too, adversely impacted both engine sales for oil production and demand for construction machines used in energy site preparations. Moreover, construction equipment sales are way below prior peaks in North America, Latin America, Europe, Africa, the Middle East and Asia Pacific.
In order to stay profitable in the wake of reduced revenue expectations, Caterpillar has perked up its restructuring actions that are expected to lead to annual savings of $1.5 billion in operating costs, once they are executed. The company will start implementing the actions in late 2015.
Caterpillar's dismal performance and outlook do not bode well for industrial stocks as the company is often considered a bellwether of economic activities. Hence, it is not a surprise that Caterpillar has dragged its peers with it.
Deere & Company DE , the $24.2 billion enterprise, which manufactures agricultural and forestry equipment, construction equipment and engines, fell to a 52-week low of $73.70 yesterday. Joy Global, Inc. JOY , the manufacturer of surface and underground mining equipment followed suit, dipping to its 52-week low of $14.67. Manufacturer of equipment for construction, infrastructure, and surface mining industries, Terex Corporation TEX plunged to a 52-week low of $16.54. Likewise, Astec Industries and Manitowoc also fell to their respective 52-week lows of $33.36 and $14.51.
At present, Caterpillar and Astec carry a Zacks Rank #3 (Hold) while Deere, Joy Global, Terex and Manitowoc have a Zacks Rank #5 (Strong Sell).
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
TEREX CORP (TEX): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
JOY GLOBAL INC (JOY): 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.
|
If this materializes, the company's revenue would drop for four years in a row for the first time in its nine-decade long operations. Caterpillar's dismal performance and outlook do not bode well for industrial stocks as the company is often considered a bellwether of economic activities. Year to date, Caterpillar shares have yielded a negative return of roughly 28.53%.
|
Deere & Company DE , the $24.2 billion enterprise, which manufactures agricultural and forestry equipment, construction equipment and engines, fell to a 52-week low of $73.70 yesterday. At present, Caterpillar and Astec carry a Zacks Rank #3 (Hold) while Deere, Joy Global, Terex and Manitowoc have a Zacks Rank #5 (Strong Sell). Click to get this free report TEREX CORP (TEX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Deere & Company DE , the $24.2 billion enterprise, which manufactures agricultural and forestry equipment, construction equipment and engines, fell to a 52-week low of $73.70 yesterday. Click to get this free report TEREX CORP (TEX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Year to date, Caterpillar shares have yielded a negative return of roughly 28.53%.
|
Year to date, Caterpillar shares have yielded a negative return of roughly 28.53%. For 2016, the company expects sales to be 5% below 2015 levels with decline across all three of its aforementioned major segments. The most significant decline is anticipated in the oil and gas portion of the Energy and Transportation segment.
|
dd232758-e868-4934-8d5f-057bdc7ead11
|
722751.0
|
2015-09-25 00:00:00 UTC
|
Deere & Company (DE) Ex-Dividend Date Scheduled for September 28, 2015
|
DE
|
https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-september-28-2015-2015-09-25
|
nan
|
nan
|
Deere & Company ( DE ) will begin trading ex-dividend on September 28, 2015. A cash dividend payment of $0.6 per share is scheduled to be paid on November 02, 2015. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 6th quarter that DE has paid the same dividend. At the current stock price of $75.76, the dividend yield is 3.17%.
The previous trading day's last sale of DE was $75.76, representing a -22.87% decrease from the 52 week high of $98.23 and a 1.97% increase over the 52 week low of $74.30.
DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). DE's current earnings per share, an indicator of a company's profitability, is $6.51. Zacks Investment Research reports DE's forecasted earnings growth in 2015 as -37.22%, compared to an industry average of -5.4%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
Market Vectors Agribusiness ETF ( MOO )
iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
The top-performing ETF of this group is IBCE with an decrease of -1.2% over the last 100 days. MOO has the highest percent weighting of DE at 6.95%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
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 Thermo Fisher Scientific Inc ( TMO ). Zacks Investment Research reports DE's forecasted earnings growth in 2015 as -37.22%, compared to an industry average of -5.4%.
|
DE's current earnings per share, an indicator of a company's profitability, is $6.51. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company ( DE ) will begin trading ex-dividend on September 28, 2015.
|
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: Market Vectors Agribusiness ETF ( MOO ) iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
|
A cash dividend payment of $0.6 per share is scheduled to be paid on November 02, 2015. DE's current earnings per share, an indicator of a company's profitability, is $6.51. The following ETF(s) have DE as a top-10 holding: Market Vectors Agribusiness ETF ( MOO ) iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
|
7dd86706-3c0d-481d-9f99-2494d919a8f6
|
722752.0
|
2015-09-25 00:00:00 UTC
|
5 Industrial Stocks to Avoid After Caterpillar Report
|
DE
|
https://www.nasdaq.com/articles/5-industrial-stocks-to-avoid-after-caterpillar-report-2015-09-25
|
nan
|
nan
|
Macroeconomic headwinds, characterized by a weak global economic outlook, particularly in China, and soft commodity prices, continue to cloud the near- to medium-term outlook of industrial stocks. The International Monetary Fund ("IMF") has reduced its 2015 growth projection for the global economy by 20 basis points to 3.3%, while anticipating 3.8% growth in 2016.
Roughly 87% of total 23 Industrial stocks in the S&P 500 group presently carry a "Hold" or "Sell" investment ranking, with majority having yielded negative year-to-date returns. Investment in these stocks has been influenced by certain factors over the past few quarters, while the recent report by the world's largest construction and mining equipment manufacturer Caterpillar Inc.CAT has further aggravated the problem.
Caterpillar Report - A Warning?
The $40-billion equipment maker lowered its revenue outlook for 2015 to $48 billion from the earlier projection of $49 billion. Also, the company anticipates its 2016 revenues to fall 5% from the 2015 tally.
In addition, Caterpillar initiated certain restructuring and cost-saving actions to align its business with current demand as well as to absorb the negatives arising from global uncertainties. The company has decided to reduce its workforce by 4000−5000 by the end of 2016, while expecting to reduce employee strength by more than 10,000 by 2018. Also, factory consolidations will be prioritized, impacting as many as 20 factories worldwide. Once fully implemented, these initiatives are likely to lower Caterpillar's expenses by $1.5 billion annually.
Caterpillar cited that global uncertainties have hurt its businesses in Energy & Transportation, Construction and Resource end markets. Demand for equipment has fallen sharply as fluctuating currency movements and uncertain global growth has negatively impacted export orders. To add to the woes, weak oil prices have restricted oil and gas drilling activities in the country, thus curtailing the capital expenditure for purchase of machinery and equipment.
The company anticipates no respite from the difficult operating conditions in the near future. As per reports of the Federal Reserve, industrial production in the U.S declined 0.4% sequentially in last August due to fall of 0.5% in manufacturing and 0.6% in mining outputs. For second-quarter 2015, industrial production had declined 1.4% year over year.
Another matter of concern is the weakening export demand for the U.S.-manufactured machinery. As per the U.S. Census Bureau report, machinery shipments declined 1.4% year over year in the first eight months of 2015. New orders were down 8.3%, while order backlog decreased 8.7%.
5 Industrial Stocks to Avoid
Caterpillar's bleak prospects have not only disappointed investors and the market at large, but also made them cautious about any future investments in industrial stocks. The company's share price fell nearly 6.3% on Sep 24, plunging to a new 52-week low of $64.65 during the trading session. Further sell-off of the company's shares or that of other industrial stocks will not come as a surprise.
5 industrial stocks that would be wise to ignore in the near term are briefly discussed below.
Deere & Company DE : The $24.9-billion enterprise is engaged in worldwide production and distribution of agricultural and forestry equipment, construction equipment and engines. The company is highly vulnerable to global economic conditions, like lower energy and commodity prices, constricting credit conditions and uncertainty in some major economies. Anticipating weak demand, the company projects its equipment sales to decline 21% year over year in fiscal 2015 (ending Oct 31).
The company's share price declined roughly 2.5% yesterday, while having yielded a negative return of 13.2% so far in calendar year 2015. Also, the company has an Earnings ESP of -1.35% for fourth-quarter fiscal 2015 and carries a Zacks Rank #4 (Sell), making the stock unsuitable for investment in the near term.
Joy Global, Inc. JOY : The $1.5-billion company manufactures surface and underground mining equipment for extraction of coal, copper, iron ore, oil sands, gold and other mineral resources. The company has cut its fiscal 2015 sales and earnings per share projections based on weak demand for its products and services due to global worries, including lower oil and commodity prices.
Since the beginning of calendar year 2015, the company's share price has fallen 65.9%, declining over 1% as a reaction to Caterpillar's report. The company currently has a low investment value of Zacks Rank #5 (Strong Sell).
Terex Corporation TEX : This $1.9-billion company manufactures equipment for the construction, infrastructure, and surface mining industries. The company has already trimmed its 2015 projections for earnings per share and sales due to lower commodity prices, adverse foreign currency movements and pricing pressure from rivals.
The company's share price fell 5.5% yesterday, reaching a new 52-week low of $16.64 during the trading session. Year to date, the firm has yielded a negative return of 39.2%, and currently carries a Zacks Rank #5.
H&E Equipment Services Inc. HEES : The company offers heavy construction and industrial equipment for rent to the industrial and commercial firms, construction contractors, manufacturers, public utilities, municipalities, and maintenance contractors, as well as other industrial accounts. Weakness in the oil and gas markets as well as global uncertainties forced the company to lower its guidance for sales and earnings per share for 2015.
The company's share price fell 2.3% following the release of Caterpillar's report. Year to date, the company has yielded a negative 37.7% return. Currently, it carries a Zacks Rank #4.
The Manitowoc Company, Inc. MTW : This $2.1-billion firm manufactures capital equipment for use in energy, petrochemical, industrial, infrastructure and other end markets. Taking into account the ongoing global uncertainties, the company has lowered its 2015 revenue outlook. The firm yielded a negative year-to-date return of 30.3%, while its share price fell 0.8% on Sep 24. The stock currently carries a Zacks Rank #5.
Conclusion
We believe the much-needed improvement in the economy as a whole, and the machinery industry can only be achieved with the help of effective governmental policies, huge infrastructural investments, job growth and emphasis on trade relations. Until the uncertainties in the global economy recede, it is wise to avoid gaining exposure in the above-mentioned stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TEREX CORP (TEX): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
MANITOWOC INC (MTW): Free Stock Analysis Report
JOY GLOBAL INC (JOY): Free Stock Analysis Report
H&E EQUIP SVCS (HEES): 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 has cut its fiscal 2015 sales and earnings per share projections based on weak demand for its products and services due to global worries, including lower oil and commodity prices. Conclusion We believe the much-needed improvement in the economy as a whole, and the machinery industry can only be achieved with the help of effective governmental policies, huge infrastructural investments, job growth and emphasis on trade relations. Roughly 87% of total 23 Industrial stocks in the S&P 500 group presently carry a "Hold" or "Sell" investment ranking, with majority having yielded negative year-to-date returns.
|
Anticipating weak demand, the company projects its equipment sales to decline 21% year over year in fiscal 2015 (ending Oct 31). The company has cut its fiscal 2015 sales and earnings per share projections based on weak demand for its products and services due to global worries, including lower oil and commodity prices. Click to get this free report TEREX CORP (TEX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report MANITOWOC INC (MTW): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report H&E EQUIP SVCS (HEES): Free Stock Analysis Report To read this article on Zacks.com click here.
|
The company has cut its fiscal 2015 sales and earnings per share projections based on weak demand for its products and services due to global worries, including lower oil and commodity prices. Click to get this free report TEREX CORP (TEX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report MANITOWOC INC (MTW): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report H&E EQUIP SVCS (HEES): Free Stock Analysis Report To read this article on Zacks.com click here. Roughly 87% of total 23 Industrial stocks in the S&P 500 group presently carry a "Hold" or "Sell" investment ranking, with majority having yielded negative year-to-date returns.
|
Anticipating weak demand, the company projects its equipment sales to decline 21% year over year in fiscal 2015 (ending Oct 31). Roughly 87% of total 23 Industrial stocks in the S&P 500 group presently carry a "Hold" or "Sell" investment ranking, with majority having yielded negative year-to-date returns. In addition, Caterpillar initiated certain restructuring and cost-saving actions to align its business with current demand as well as to absorb the negatives arising from global uncertainties.
|
8e600678-18aa-4325-949d-cc5aece5422d
|
722753.0
|
2015-09-24 00:00:00 UTC
|
Deere & Company (DE): Moving Average Crossover Alert
|
DE
|
https://www.nasdaq.com/articles/deere-company-de%3A-moving-average-crossover-alert-2015-09-24
|
nan
|
nan
|
Deere & Company ( DE ) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DE broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness.
This has already started to take place, as the stock has moved lower by 4.4% in the past four weeks. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for DE stock.
If that wasn't enough, Deere & Company isn't looking too great from an earnings estimate revision perspective either. It appears as though many analysts have been reducing their earnings expectations for the stock lately, which is usually not a good sign of things to come.
Consider that in the last 30 days, 1 estimate has been reduced, while just none have moved higher. Add this in to a similar move lower in the consensus estimate, and there is plenty of reason to be bearish here.
That is why we currently have a Zacks Rank #4 (Sell) on this stock and are looking for it to underperform in the weeks ahead. So either avoid this stock or consider jumping ship until the estimates and technical factors turn around for DE.
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.
|
Deere & Company ( DE ) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for DE stock. So either avoid this stock or consider jumping ship until the estimates and technical factors turn around for DE.
|
Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company ( DE ) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DE broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness.
|
Deere & Company ( DE ) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DE broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Deere & Company ( DE ) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DE broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness. Consider that in the last 30 days, 1 estimate has been reduced, while just none have moved higher.
|
57f8d0a0-c1c3-40d2-8322-a3496e4eab8c
|
722754.0
|
2015-09-17 00:00:00 UTC
|
Notable ETF Outflow Detected - MOO, SYT, ADM, DE
|
DE
|
https://www.nasdaq.com/articles/notable-etf-outflow-detected-moo-syt-adm-de-2015-09-17
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $29.8 million dollar outflow -- that's a 2.4% decrease week over week (from 24,850,000 to 24,250,000). Among the largest underlying components of MOO, in trading today Syngenta AG (Symbol: SYT) is down about 1.3%, Archer Daniels Midland Co. (Symbol: ADM) is up about 0.6%, and Deere & Co. (Symbol: DE) is lower by about 0.7%. For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average:
Looking at the chart above, MOO's low point in its 52 week range is $47.00 per share, with $58.08 as the 52 week high point - that compares with a last trade of $49.70. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $47.00 per share, with $58.08 as the 52 week high point - that compares with a last trade of $49.70. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
|
For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $47.00 per share, with $58.08 as the 52 week high point - that compares with a last trade of $49.70. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $29.8 million dollar outflow -- that's a 2.4% decrease week over week (from 24,850,000 to 24,250,000).
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $29.8 million dollar outflow -- that's a 2.4% decrease week over week (from 24,850,000 to 24,250,000). For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $47.00 per share, with $58.08 as the 52 week high point - that compares with a last trade of $49.70. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $29.8 million dollar outflow -- that's a 2.4% decrease week over week (from 24,850,000 to 24,250,000). For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $47.00 per share, with $58.08 as the 52 week high point - that compares with a last trade of $49.70. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
|
a048cfe7-73a8-4c1a-9c7f-d67920d7237e
|
722755.0
|
2015-09-16 00:00:00 UTC
|
The 2 Things Worrying Deere and Company Investors
|
DE
|
https://www.nasdaq.com/articles/2-things-worrying-deere-and-company-investors-2015-09-16
|
nan
|
nan
|
In a previous article , I looked at the current trends within Deere & Company 's trading environment and concluded that the near-term risk was rising, even if the long-term case for the stock was still intact. For the benefit of readers looking for a deeper outline of the near-term risks, I've a created a graphical depiction below of what these rising risks are.
Let's take a closer look at what's going on.
Deere's near-term risks
In a nutshell, the company's major near-term risks come from two sources. First, the possibility of a decline in sales, leading to the need to reduce its inventory via price cuts.
Second, the company has been increasing the amount of equipment it leases to farmers -- who may be holding out on outright purchases of equipment due to a fall in cash receipts -- and the subsequent creation of a glut of used equipment.
Pricing will take a hit in both cases, and given that Deere's management continues to forecast 1% positive price realization for 2015, pricing difficulty could hit the stock hard.
Inventory to sales ratio
I've touched on this subject before : Deere's inventory-to-sales ratio is notably better than that of its competitors, such as AGCO Corp or CNH Industrial NV . While Deere deserves credit for this, if its rivals get aggressive on pricing -- due to carrying too much inventory -- then Deere will be pressured to respond.
I decided to take a look at Deere's inventory position compared to its next-quarter sales. For example, the last data point in the third quarter of 2015 -- in light blue in the chart below -- represents Deere's inventory position at the end of the current quarter of $4.32 billion, divided by the analysts' forecast for $6.15 billion in sales for the fourth quarter.
I'm using analyst forecasts because we don't know what the sales figure will be yet. It's useful to separate the data by quarter in order to reflect any seasonal effects.
As you can see in the chart above, the data suggests that Deere's inventory position in the third quarter of 2015 looks a little high on a historical basis.
Equipment on operating leases
As the following chart demonstrates, Deere has significantly increased the amount of equipment it has on operating leases. In fact, the figure has more than doubled since the start of 2012.
According to Deere's last 10-K filing, the terms on its equipment on operating leases range from four to 60 months, and the 10-K states that future payments to be received in 2019 total just $35 million, compared to $635 million in 2015 and $448 million in 2016. These figures suggest that Deere tends to lease equipment on a relatively short-term basis:
All data in millions of U.S. dollars.
The following chart shows how leasing activity has increased while sales growth has slowed:
The risk is that at some point, Deere will face a situation where it will have to aggressively sell off the used equipment created by its leasing activities, therefore pressuring pricing for its new equipment. Indeed, management has already outlined that reducing used equipment inventory "continues to be a challenge."
The takeaway
Deere is doing a pretty good job of reducing inventory, but based on the analysis in this article, its current inventory is higher than usual. Meanwhile, its growing amount of leased equipment could create problems in the future.
In other words, the near-term risk is rising for the stock. But that shouldn't detract from the long-term potential for the company's earnings to improve in future -- given an increase in crop prices and sentiment toward spending on agricultural machinery.
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 The 2 Things Worrying Deere and Company Investors originally appeared on Fool.com.
Lee Samaha 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 - 2015 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.
|
In a previous article , I looked at the current trends within Deere & Company 's trading environment and concluded that the near-term risk was rising, even if the long-term case for the stock was still intact. As you can see in the chart above, the data suggests that Deere's inventory position in the third quarter of 2015 looks a little high on a historical basis. But that shouldn't detract from the long-term potential for the company's earnings to improve in future -- given an increase in crop prices and sentiment toward spending on agricultural machinery.
|
Pricing will take a hit in both cases, and given that Deere's management continues to forecast 1% positive price realization for 2015, pricing difficulty could hit the stock hard. Equipment on operating leases As the following chart demonstrates, Deere has significantly increased the amount of equipment it has on operating leases. The following chart shows how leasing activity has increased while sales growth has slowed: The risk is that at some point, Deere will face a situation where it will have to aggressively sell off the used equipment created by its leasing activities, therefore pressuring pricing for its new equipment.
|
Pricing will take a hit in both cases, and given that Deere's management continues to forecast 1% positive price realization for 2015, pricing difficulty could hit the stock hard. For example, the last data point in the third quarter of 2015 -- in light blue in the chart below -- represents Deere's inventory position at the end of the current quarter of $4.32 billion, divided by the analysts' forecast for $6.15 billion in sales for the fourth quarter. The following chart shows how leasing activity has increased while sales growth has slowed: The risk is that at some point, Deere will face a situation where it will have to aggressively sell off the used equipment created by its leasing activities, therefore pressuring pricing for its new equipment.
|
These figures suggest that Deere tends to lease equipment on a relatively short-term basis: All data in millions of U.S. dollars. In a previous article , I looked at the current trends within Deere & Company 's trading environment and concluded that the near-term risk was rising, even if the long-term case for the stock was still intact. For the benefit of readers looking for a deeper outline of the near-term risks, I've a created a graphical depiction below of what these rising risks are.
|
43efe5d1-bfa6-49a4-ac2b-3d4e6938f5e6
|
722756.0
|
2015-09-15 00:00:00 UTC
|
Weekly Three-Year Low Highlights
|
DE
|
https://www.nasdaq.com/articles/weekly-three-year-low-highlights-2015-09-15
|
nan
|
nan
|
According to GuruFocus list of 3-year lows , Deutsche Bank AG ( NYSE:DB ), Enbridge Inc. ( NYSE:ENB ), Deere & Co. ( NYSE:DE ) and Franklin Resources Inc. ( BEN ) have all reached their three-year lows.
Deutsche Bank AG reached $29.14
The prices of Deutsche Bank AG shares have declined to $29.14, which is 46.4% off the three-year high of $51.84.
The company has a market cap of $40.18 billion, and its shares were traded at around $29.14 with a P/E ratio of 25.21 and P/S ratio of 1.03. The dividend yield of Deutsche Bank AG stocks is 2.86%.
List of 52-Week Lows
List of 3-Year Lows
List of 5-Year Lows
Deutsche Bank has reported its second quarter 2015 results. Net income for this period was EUR 818 million compared to EUR 238 million in the same period of 2014. Net revenues were EUR 9.2 billion, up 17% year over year.
Enbridge reached $38.24
The prices of Enbridge shares have declined to $38.24, which is 35.3% off the three-year high of $57.19.
Enbridge has a market cap of $32.89 billion; its shares were traded at around $38.24 with a P/E ratio of 236.74 and P/S ratio of 1.29. The dividend yield of Enbridge stocks is 3.67%, and the company had an annual average earnings growth of 5.50% over the past 10 years. GuruFocus rated it the business predictability rank of 3-star.
Enbridge reported second quarter adjusted earnings of $505 million, or $0.60 per share, versus adjusted earnings of $328 million in the prior year quarter. On a non-adjusted basis, earnings were down to $577 million from $756 million for the same quarter last year.
Senior Officer David Thomas Robottom sold 16,171 shares of ENB stock on Sept. 9 at the average price of 54.19. Robottom owns at least 49,581 shares after this. The price of the stock has decreased by 29.43% since.
Deere & Co. reached $79.68
The prices of Deere & Co. shares have declined to $79.68, which is 21.9% off the three-year high of $98.23.
The company has a market cap of $26.15 billion. Its shares were traded at around $79.68 with a P/E ratio of 12.28 and P/S ratio of 0.88. The dividend yield of Deere & Co. stocks is 3.02%, and it had an annual average earnings growth of 11.20% over the past 10 years. GuruFocus rated Deere & Co. the business predictability rank of 3.5-star.
Deere has announced its third quarter 2015 results. For this period, the company reported net income of $511.6 million, or $1.53 per share, compared with $850.7 million, or $2.33 per share for the third quarter of 2014. Worldwide net sales and revenues decreased 20% year-over-year to $7.59 billion.
Franklin Resources reached $39.17
The prices of Franklin Resources shares have declined to $39.17, which is 35.6% off the three-year high of $59.43.
Franklin Resources has a market cap of $24.04 billion, and its shares were traded at around $39.17 with a P/E ratio of 10.52 and P/S ratio of 2.92. The dividend yield of Franklin Resources Inc stocks is 1.44%. Franklin Resources had an annual average earnings growth of 11.30% over the past 10 years. GuruFocus rated it the business predictability rank of 3.5-star.
For its third quarter of 2015, Franklin Resources announced net income of $504.2 million, or $0.82 per diluted share. This compares to net income of $578.9 million, or $0.92 per diluted share in its prior year quarter. Operating revenues were flat at $2.0 billion. Assets under management were down 2% to $866.5 billion.
Go here for the complete list of 3-year lows.
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.
|
The dividend yield of Enbridge stocks is 3.67%, and the company had an annual average earnings growth of 5.50% over the past 10 years. The dividend yield of Deere & Co. stocks is 3.02%, and it had an annual average earnings growth of 11.20% over the past 10 years. According to GuruFocus list of 3-year lows , Deutsche Bank AG ( NYSE:DB ), Enbridge Inc. ( NYSE:ENB ), Deere & Co. ( NYSE:DE ) and Franklin Resources Inc. ( BEN ) have all reached their three-year lows.
|
According to GuruFocus list of 3-year lows , Deutsche Bank AG ( NYSE:DB ), Enbridge Inc. ( NYSE:ENB ), Deere & Co. ( NYSE:DE ) and Franklin Resources Inc. ( BEN ) have all reached their three-year lows. Deutsche Bank AG reached $29.14 The prices of Deutsche Bank AG shares have declined to $29.14, which is 46.4% off the three-year high of $51.84. The company has a market cap of $40.18 billion, and its shares were traded at around $29.14 with a P/E ratio of 25.21 and P/S ratio of 1.03.
|
According to GuruFocus list of 3-year lows , Deutsche Bank AG ( NYSE:DB ), Enbridge Inc. ( NYSE:ENB ), Deere & Co. ( NYSE:DE ) and Franklin Resources Inc. ( BEN ) have all reached their three-year lows. Deutsche Bank AG reached $29.14 The prices of Deutsche Bank AG shares have declined to $29.14, which is 46.4% off the three-year high of $51.84. The company has a market cap of $40.18 billion, and its shares were traded at around $29.14 with a P/E ratio of 25.21 and P/S ratio of 1.03.
|
The dividend yield of Deere & Co. stocks is 3.02%, and it had an annual average earnings growth of 11.20% over the past 10 years. According to GuruFocus list of 3-year lows , Deutsche Bank AG ( NYSE:DB ), Enbridge Inc. ( NYSE:ENB ), Deere & Co. ( NYSE:DE ) and Franklin Resources Inc. ( BEN ) have all reached their three-year lows. Deutsche Bank AG reached $29.14 The prices of Deutsche Bank AG shares have declined to $29.14, which is 46.4% off the three-year high of $51.84.
|
d85cd58e-4610-448e-ba77-370d91901d67
|
722757.0
|
2015-09-14 00:00:00 UTC
|
Five Undervalued Companies for the Defensive Investor - September 2015
|
DE
|
https://www.nasdaq.com/articles/five-undervalued-companies-defensive-investor-september-2015-2015-09-14
|
nan
|
nan
|
There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I've selected the five undervalued companies reviewed by ModernGraham trading closest to their 52-week lows. Each of these companies has been determined to be suitable for the Defensive Investor according to the ModernGraham approach.
Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk.
Be sure to check out the history of this screen to see which companies have been selected in the past.
Warren Buffett Recent Buys
Here are the five undervalued companies for the Defensive Investor near 52 week lows:
Helmerich & Payne Inc.
Helmerich & Payne Inc. ( NYSE:HP ) qualifies for the more conservative Defensive Investor or the Enterprising Investor. The company passes all of the requirements of both investor types, a rare accomplishment. As a result, all value investors following the ModernGraham approach based on Benjamin Graham's methods should feel comfortable proceeding with the valuation.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $3.24 in 2011 to an estimated $4.77 for 2015. This level of demonstrated earnings growth outpaces the market's implied estimate of 1.85% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value above the price. (See the full valuation)
Franklin Resources Inc.
Franklin Resources Inc. ( NYSE:BEN ) qualifies for both the Defensive Investor and the Enterprising Investor. The company passes all of the requirements of both investor types, a rare accomplishment indicative of the company's strong fundamentals. As a result, all value investors following the ModernGraham approach based on Benjamin Graham's methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $2.23 in 2011 to an estimated $3.41 for 2015. This level of demonstrated earnings growth outpaces the market's implied estimate of 1.47% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value above the price. (See the full valuation)
Deere & Company
Deere & Company ( DE ) performs very well in the ModernGraham model and is suitable for both Defensive and Enterprising Investors. In fact, the company passes all of the requirements of both investor types, which is a rare accomplishment indicative of the company's strong financial position. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company's intrinsic value.
When it comes to valuation, it is critical to consider the company's earnings history. In this case, the company has grown its EPSmg (normalized earnings) from $4.68 in 2011 to an estimated $7.30 for 2015. This is a strong level of growth and is well above the market's implied estimate of only 2.11% annual earnings growth over the next 7-10 years.
Here, actual growth in EPSmg over the last several years has averaged nearly 11.25% annually, so the market is expecting a very significant drop in earnings growth. The ModernGraham valuation model reduces the historical growth to a more conservative figure, assuming that some slowdown will occur, but still estimates a growth figure much higher than the market's implied rate. Therefore, the model returns an estimate of intrinsic value well above the current price, indicating the company is significantly undervalued at the present time. (See the full valuation)
Monsanto Company
Monsanto Company ( MON ) qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor is only concerned with the high PB ratio while the Enterprising Investor's only concern is the level of debt relative to the net current assets. As a result, all value investors following the ModernGraham approach based on Benjamin Graham's methods should feel comfortable proceeding with further research into the company.
As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $2.87 in 2011 to an estimated $4.91 for 2015. This level of demonstrated earnings growth outpaces the market's implied estimate of 5.62% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value above the price. (See the full valuation)
Qualcomm Inc.
Qualcomm Inc. ( QCOM ) passes the initial requirements of both the Defensive Investor and the Enterprising Investor. In fact, neither investor type has any initial concerns, which is indicative of the company's strong financial position. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company's intrinsic value.
When it comes to that valuation, it is critical to consider the company's earnings history. In this case, it has grown its EPSmg (normalized earnings) from $1.94 in 2011 to an estimated $3.87 for 2015. This level of demonstrated growth outpaces the market's implied estimate for annual earnings growth of 3.69% over the next 7-10 years.
In recent years, the company's actual growth in EPSmg has averaged around 20% annually. The ModernGraham valuation model reduces the actual growth to a more conservative figure when making an estimate, but still returns an estimate of intrinsic value well above the current price, indicating that Qualcomm Inc. is undervalued at the present time. (See the full valuation)
What do you think? Are these companies good values for Defensive Investors? Is there a company you like better? Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.
Disclaimer:
The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours. See my current holdings here. This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions. ModernGraham is not affiliated with the company in any manner. Please be sure to review our detailed disclaimer.
This article first appeared on ModernGraham.
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.
|
As a result, all value investors following the ModernGraham approach based on Benjamin Graham's methods should feel comfortable proceeding with further research into the company. As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value above the price. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company's intrinsic value.
|
As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value above the price. Warren Buffett Recent Buys Here are the five undervalued companies for the Defensive Investor near 52 week lows: Helmerich & Payne Inc. Helmerich & Payne Inc. ( NYSE:HP ) qualifies for the more conservative Defensive Investor or the Enterprising Investor. This level of demonstrated earnings growth outpaces the market's implied estimate of 1.85% annual earnings growth over the next 7-10 years.
|
As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value above the price. Warren Buffett Recent Buys Here are the five undervalued companies for the Defensive Investor near 52 week lows: Helmerich & Payne Inc. Helmerich & Payne Inc. ( NYSE:HP ) qualifies for the more conservative Defensive Investor or the Enterprising Investor. As a result, all value investors following the ModernGraham approach based on Benjamin Graham's methods should feel comfortable proceeding with further research into the company.
|
As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value above the price. By using the ModernGraham Valuation Model, I've selected the five undervalued companies reviewed by ModernGraham trading closest to their 52-week lows. As a result, all value investors following the ModernGraham approach based on Benjamin Graham's methods should feel comfortable proceeding with further research into the company.
|
8ec28156-a0a8-44e7-b6db-d3a8e4261cd7
|
722758.0
|
2015-09-09 00:00:00 UTC
|
Why It Might Be Time To Look At Buyback ETFs Again
|
DE
|
https://www.nasdaq.com/articles/why-it-might-be-time-look-buyback-etfs-again-2015-09-09
|
nan
|
nan
|
During the course of the current bull market, one increasingly prominent theme has been companies' willingness to spend and spend big on share repurchase programs. Reduce shares outstanding, increase earnings per share and everyone winners - namely management and investors, is how buyback thinking usually goes.
PowerShares Buyback Achievers Fund
That thinking has been a boon for exchange-traded funds such as the PowerShares Buyback Achievers Fund (ETF) (NYSE: PKW ). Since March 10, 2009, the day after the post-financial crisis market bottom, PKW has returned nearly 280 percent compared to about 213 percent for the S&P 500.
Interestingly, PKW has also been slightly less volatile than the SPDR S&P 500 ETF Trust (NYSE: SPY ) over that period, according to ETF Replay data .
Year-to-date, things have been much different as PKW entered Wednesday with a 4.5 percent loss, or 50 percent worse than the 2015 showing turned in by SPY. However, it could be time to give ETFs like PKW and its newer rival , the SPDR S&P 500 Buyback ETF (NYSE: SPYB ), a closer look, as buyback activity could be poised to surge following a period of lethargy.
Related Link: M&A Buyback-Driven Growth Will Be Eliminated By Higher Interest Rates
"Yesterday's break in the investment grade new issuance drought is significant. As sentiment in the capital markets is repaired it should also inspire stock buyback activity. After a record 13 days of no issuance, 10 IG Corporate issuers tapped the dollar market yesterday, printing 19 tranches, and totaling $13.61 billion," said Rareview Macro founder Neil Azous in a note out Wednesday.
Dow Components
Dow components Goldman Sachs Group Inc (NYSE: GS ) and Home Depot Inc (NYSE: HD ) were among the well-known companies tapping the investment-grade corporate bond market Tuesday. PKW, which allocates nearly 30 percent of its weight to consumer discretionary stocks, features Home Depot as its largest holding at a weight of 5.6 percent.
S&P 500 Buyback Versus PowerShares Buyback
SPYB, which debuted in February, does not allocate more than 1.4 percent to any of its 102 holdings. Neither ETF currently holds shares of Goldman Sachs, but both funds own shares of Deere & Company (NYSE: DE ), which also issued new investment-grade debt on Tuesday.
PKW tracks the NASDAQ U.S. BuyBack Achievers Index, which "is comprised of U.S. securities issued by corporations that have effected a net reduction in shares outstanding of 5 percent or more in the trailing 12 months," according to PowerShares .
SPYB follows the S&P 500 Buyback Index, an equal-weight benchmark that "provides exposure to the 100 constituent companies in the S&P 500 with the highest buyback ratio in the last 12 months. The buyback ratio is defined as the ratio of the total cash put towards buybacks in the trailing year and the market capitalization of the company as of a reference date," according to a statement issued by SSgA.
The Investment-Grade Debt Issuance Influence
It remains to be seen if increased investment-grade debt issuance will translate into a significant increase buyback activity and if that increased activity is rewarding for PKW and SPYB. As it pertains to PKW, the ETF could use the help to pull ahead of the S&P 500. The ETF has only lagged the benchmark U.S. index twice in the past six years.
Image Credit: Public Domain
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Free Trading Education - Check out the free events taking place on Marketfy this week. Spaces are limited. Sign up today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Related Link: M&A Buyback-Driven Growth Will Be Eliminated By Higher Interest Rates "Yesterday's break in the investment grade new issuance drought is significant. After a record 13 days of no issuance, 10 IG Corporate issuers tapped the dollar market yesterday, printing 19 tranches, and totaling $13.61 billion," said Rareview Macro founder Neil Azous in a note out Wednesday. PKW tracks the NASDAQ U.S. BuyBack Achievers Index, which "is comprised of U.S. securities issued by corporations that have effected a net reduction in shares outstanding of 5 percent or more in the trailing 12 months," according to PowerShares .
|
PowerShares Buyback Achievers Fund That thinking has been a boon for exchange-traded funds such as the PowerShares Buyback Achievers Fund (ETF) (NYSE: PKW ). Dow Components Dow components Goldman Sachs Group Inc (NYSE: GS ) and Home Depot Inc (NYSE: HD ) were among the well-known companies tapping the investment-grade corporate bond market Tuesday. Neither ETF currently holds shares of Goldman Sachs, but both funds own shares of Deere & Company (NYSE: DE ), which also issued new investment-grade debt on Tuesday.
|
PowerShares Buyback Achievers Fund That thinking has been a boon for exchange-traded funds such as the PowerShares Buyback Achievers Fund (ETF) (NYSE: PKW ). The Investment-Grade Debt Issuance Influence It remains to be seen if increased investment-grade debt issuance will translate into a significant increase buyback activity and if that increased activity is rewarding for PKW and SPYB. Related Link: M&A Buyback-Driven Growth Will Be Eliminated By Higher Interest Rates "Yesterday's break in the investment grade new issuance drought is significant.
|
Neither ETF currently holds shares of Goldman Sachs, but both funds own shares of Deere & Company (NYSE: DE ), which also issued new investment-grade debt on Tuesday. SPYB follows the S&P 500 Buyback Index, an equal-weight benchmark that "provides exposure to the 100 constituent companies in the S&P 500 with the highest buyback ratio in the last 12 months. PowerShares Buyback Achievers Fund That thinking has been a boon for exchange-traded funds such as the PowerShares Buyback Achievers Fund (ETF) (NYSE: PKW ).
|
8f004504-0d1f-4a25-8c1e-138b265c4e2d
|
722759.0
|
2015-09-08 00:00:00 UTC
|
What Deere's Management Has to Say About Current Trends
|
DE
|
https://www.nasdaq.com/articles/what-deeres-management-has-say-about-current-trends-2015-09-08
|
nan
|
nan
|
The best-case scenario for investors in Deere & Company is that crop prices rise, leading to an increase in farmers' incomes and ultimately a pickup in spending on large agricultural machinery. However, until that happens, the company will have to weather the storm of declining sales and weakening economic conditions within emerging markets. The question now is: How is the company adjusting to weakening conditions? Here is a look at five things you need to know about Deere's current trends.
1. Construction sector disappoints
I've covered the third-quarter results in more detail elsewhere . Deere downgraded its full-year expectations for its Construction and Forestry equipment sales, alongside a reduction in its forecast for Agriculture and Turf sales. The latter was hardly a surprise, but the former -- where underlying sales growth was reduced to a negative 2% from a positive 5% previously -- was a disappointment.
On theearnings call Manager of Investor Communications Susan Karlix outlined a mix of reasons that Deere's construction equipment order book was weakening:
slowdown in demand from the energy sector and "energy producing regions"
wet weather in the U.S. that slowed construction activity in the first half
decline in "rental utilization rates"
slow economic growth outside the U.S.
There is little Deere can do about energy prices and economic growth, so you will just have to watch and wait, but the weather issue in the first half of 2015 could lead to a pickup in construction activity in the second half -- something to look out for.
2. Early orders weak
UBS analyst Steven Fisher asked Deere's management how its early order programs were faring and, unfortunately, Director of Investor Relations Tony Huegel's response indicated potential weakness. Huegel outlined how "certainly we are seeing in those early order programs orders being off year-over-year, which historically would indicate some additional weakening as you move into 2016."
Clearly, early orders don't completely dictate how 2016 will end up, but nevertheless Huegel's response indicates that current trends aren't positive.
3. U.S. farm crop cash receipts
Deere's management has long argued that farmers' cash receipts correlate with agriculture equipment sales. As such, there is cause for optimism around Deere's forecast for an increase in cash receipts from crops in 2016. Although, as you can see in the chart below, total cash receipts are forecast to decline in 2016.
However, Huegel's remark to "remember it's a combination of both current year and prior year" reminded investors that sales in 2016 aren't just about cash receipts in 2016. Indeed, Huegel went on to outline that, given current conditions and forecasts, "it is likely that you would see some reduction, further reduction in large Ag sales retail sales next year."
In other words, don't get too excited by the prediction for an increase in U.S. farmers' cash receipts in 2016.
4. Inventory situation
Whenever sales decline in an industry, it's always a good idea to keep an eye on inventory levels. Bloated inventories usually signal trouble, as companies are often forced to cut prices in order to clear them. On theearnings call Huegel was asked a question on new and used inventory. He went on to outline that Deere continued to have new inventories at "50% or less as you look at inventory as a percent of sales," in contrast to its rivals '.
With regard to used inventory, Huegel said it continues to be a challenge, and described how Deere was working with dealers in order to shift used equipment. He also outlined that "large tractors continues to be a challenge."
5. Pricing
Given the weakening sales and orders environment, you might expect that pricing would come under pressure -- particularly as Deere tries to reduce inventories. Moreover, as noted in a previous article , the full-year forecast for price realization was taken down to 1% growth from 2% previously.
This is clearly a net negative, but Huegel's discourse suggested it wasn't as significant as it superficially looks. He argued, "Both last quarter and this quarter there is some fair amount of rounding to get to that whole number. So we've been fluctuating candidly right around 1.5 points." Moreover, he suggested, "There hasn't been a substantial change in the pricing environment since last quarter."
This is interesting commentary and indicates Deere is holding pricing well in a difficult environment.
What does it mean for Deere investors?
Conditions for Deere appear to be gradually getting worse in 2015, and the early indicators for 2016 (early orders and estimates for farmers' cash receipts) are suggesting ongoing weakness. In addition, by management's own admission, its inventory of used equipment continues to pose a challenge -- something that could threaten pricing power in future quarters.
The investment case for buying Deere still rests on the idea that crop prices will bottom out, but the current trading environment is weakening for Deere, and the company continues to face challenges with reducing its inventory. All told, near-term risk is rising even if the long-term case for buying the stock remains intact.
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 Deere's Management Has to Say About Current Trends originally appeared on Fool.com.
Lee Samaha 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 - 2015 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.
|
The best-case scenario for investors in Deere & Company is that crop prices rise, leading to an increase in farmers' incomes and ultimately a pickup in spending on large agricultural machinery. On theearnings call Manager of Investor Communications Susan Karlix outlined a mix of reasons that Deere's construction equipment order book was weakening: slowdown in demand from the energy sector and "energy producing regions" wet weather in the U.S. that slowed construction activity in the first half decline in "rental utilization rates" slow economic growth outside the U.S. However, until that happens, the company will have to weather the storm of declining sales and weakening economic conditions within emerging markets.
|
The best-case scenario for investors in Deere & Company is that crop prices rise, leading to an increase in farmers' incomes and ultimately a pickup in spending on large agricultural machinery. Early orders weak UBS analyst Steven Fisher asked Deere's management how its early order programs were faring and, unfortunately, Director of Investor Relations Tony Huegel's response indicated potential weakness. U.S. farm crop cash receipts Deere's management has long argued that farmers' cash receipts correlate with agriculture equipment sales.
|
On theearnings call Manager of Investor Communications Susan Karlix outlined a mix of reasons that Deere's construction equipment order book was weakening: slowdown in demand from the energy sector and "energy producing regions" wet weather in the U.S. that slowed construction activity in the first half decline in "rental utilization rates" slow economic growth outside the U.S. Pricing Given the weakening sales and orders environment, you might expect that pricing would come under pressure -- particularly as Deere tries to reduce inventories. The investment case for buying Deere still rests on the idea that crop prices will bottom out, but the current trading environment is weakening for Deere, and the company continues to face challenges with reducing its inventory.
|
Pricing Given the weakening sales and orders environment, you might expect that pricing would come under pressure -- particularly as Deere tries to reduce inventories. The investment case for buying Deere still rests on the idea that crop prices will bottom out, but the current trading environment is weakening for Deere, and the company continues to face challenges with reducing its inventory. The best-case scenario for investors in Deere & Company is that crop prices rise, leading to an increase in farmers' incomes and ultimately a pickup in spending on large agricultural machinery.
|
034c4191-bec0-4ccc-a8fb-751030b42b5a
|
722760.0
|
2015-08-28 00:00:00 UTC
|
What Will It Take for Deere to Recover?
|
DE
|
https://www.nasdaq.com/articles/what-will-it-take-deere-recover-2015-08-28
|
nan
|
nan
|
Now that the dust has settled on Deere & Company 's earnings, it's time to take a closer look at the ongoing trends in its business. The stock has, superficially at least, some very attractive qualities.
The food industry is relatively noncyclically aligned and offers investors the potential to generate positive returns irrespective of where the economy is headed. Meanwhile, Deere investors will be hoping that 2015 sees a trough in its earnings. With that said, the company's third-quarter earnings and guidance were disappointing, and there is no sign that Deere's difficult end markets are picking up just yet.
So where does this leave the case for buying stock in Deere?
Deere is struggling with large machinery sales. Source: Deere & Co.
Deere takes it back
Last time around, Deere's management cheered investors by raising its full-year net income forecast to $1.9 billion from $1.8 billion. However, as I wrote at the time , the increase was largely due to increased cost-cutting. In fact, full-year sales expectations were decreased on a reported and constant-currency basis.
Fast-forward to the third quarter, and Deere promptly cut its full-year net income forecast back to $1.8 billion and reduced full-year sales expectations for a decline of 21% compared to a previous estimate of a fall of 19%.
Moreover, excluding currency movements, management now expects sales to decline by 17% rather than a previous estimate of 15%. A quick look at how guidance has shifted throughout the year demonstrates a lot about Deere's trends. As you can see in the table below, guidance for sales growth (excluding currency effects) was reduced in both equipment divisions in the third quarter.
Data source: Company presentations. All sales growth figures are currency adjusted.
Cash flow, pricing, used equipment
Essentially, lower commodity crop prices and reduced farmers' income are continuing to pressure demand for Deere's large agricultural equipment. Moreover, economic weakness in growth markets like Brazil and China is weakening Deere's growth prospects. For example, the company now sees South America agriculture and turf retail sales down 20%-25% from a previous forecast of a reduction of 15%-20%.
However, the real surprise was in the downward shift in expectations for construction and forestry equipment. Despite citing some positive construction indicators -- such as an increase in forecast total construction investment growth to 2.3% from 0.3% previously -- Deere's management disclosed on theearnings callthat it was "seeing weakening in our order books" and Manager of Investor Communications Susan Karlix went on to cite a number of responsible factors, including the slowdown in the energy sector, wet weather, and "sluggish economic growth outside of the United States."
All of which is taking its toll on other key metrics for the company. For example, Deere reduced its expectations for cash flow from operations to $3.2 billion from $3.4 billion previously. In addition, Deere is seeing some increased pricing pressure from competitors that Director of Investor Relations Tony Huegel described as being "very aggressive on pricing right now."
In fact, the company now expects price realization for the full year to be 1% from a previous estimate of 2%. Huegel spoke on the matter and outlined that there was a "fair amount of rounding to get to that whole number" and that there hadn't been "a substantial change in the pricing environment since last quarter."
Nevertheless, it's still a reduction in pricing expectations, and despite Deere's inventory situation being better than its rivals , if they are likely to aggressively reduce inventory by cutting prices, then Deere will surely suffer, too.
The takeaway
All told, current market conditions are weak for Deere, and it is suffering some of the fallout from weakening economic growth in emerging markets as well as ongoing weakness in crop prices and farmers' income. Furthermore, pricing pressures could get stronger in future quarters as competitors try to reduce their inventory levels.
All of which doesn't make happy reading for Deere investors. In truth, the bullish investment case for the stock really lies in the idea that crop prices could trough in 2015, leading to increased cash receipts for farmers in future years -- usually good news for Deere's agricultural machinery sales. Deere needs higher crop prices, because the economy isn't helping much and the case for the stock rests on the assumption that prices for crops like corn, wheat, soybean, and cotton will move higher in the coming years.
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 Will It Take for Deere to Recover? originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned, and neither does The Motley Fool. 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 - 2015 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.
|
The food industry is relatively noncyclically aligned and offers investors the potential to generate positive returns irrespective of where the economy is headed. Despite citing some positive construction indicators -- such as an increase in forecast total construction investment growth to 2.3% from 0.3% previously -- Deere's management disclosed on theearnings callthat it was "seeing weakening in our order books" and Manager of Investor Communications Susan Karlix went on to cite a number of responsible factors, including the slowdown in the energy sector, wet weather, and "sluggish economic growth outside of the United States." In truth, the bullish investment case for the stock really lies in the idea that crop prices could trough in 2015, leading to increased cash receipts for farmers in future years -- usually good news for Deere's agricultural machinery sales.
|
Source: Deere & Co. Deere takes it back Last time around, Deere's management cheered investors by raising its full-year net income forecast to $1.9 billion from $1.8 billion. Fast-forward to the third quarter, and Deere promptly cut its full-year net income forecast back to $1.8 billion and reduced full-year sales expectations for a decline of 21% compared to a previous estimate of a fall of 19%. Cash flow, pricing, used equipment Essentially, lower commodity crop prices and reduced farmers' income are continuing to pressure demand for Deere's large agricultural equipment.
|
Source: Deere & Co. Deere takes it back Last time around, Deere's management cheered investors by raising its full-year net income forecast to $1.9 billion from $1.8 billion. Despite citing some positive construction indicators -- such as an increase in forecast total construction investment growth to 2.3% from 0.3% previously -- Deere's management disclosed on theearnings callthat it was "seeing weakening in our order books" and Manager of Investor Communications Susan Karlix went on to cite a number of responsible factors, including the slowdown in the energy sector, wet weather, and "sluggish economic growth outside of the United States." Nevertheless, it's still a reduction in pricing expectations, and despite Deere's inventory situation being better than its rivals , if they are likely to aggressively reduce inventory by cutting prices, then Deere will surely suffer, too.
|
Source: Deere & Co. Deere takes it back Last time around, Deere's management cheered investors by raising its full-year net income forecast to $1.9 billion from $1.8 billion. Fast-forward to the third quarter, and Deere promptly cut its full-year net income forecast back to $1.8 billion and reduced full-year sales expectations for a decline of 21% compared to a previous estimate of a fall of 19%. Cash flow, pricing, used equipment Essentially, lower commodity crop prices and reduced farmers' income are continuing to pressure demand for Deere's large agricultural equipment.
|
5b069fb7-6380-4d83-8a92-ca9cdad9f7a4
|
722761.0
|
2015-08-26 00:00:00 UTC
|
Deere (DE) and UAW Start Negotiations on Labor Contract
|
DE
|
https://www.nasdaq.com/articles/deere-de-and-uaw-start-negotiations-on-labor-contract-2015-08-26
|
nan
|
nan
|
The manufacturer of agricultural, construction, forestry and consumer equipment, Deere & CompanyDE and the United Auto Workers (UAW) union began negotiations on a new labor agreement.
The existing six-year contract, ratified in Oct 2009, covers approximately 10,000 manufacturing employees at 12 Deere facilities. UAW approved the contract by a wide margin of 82% which included $3,500 ratification bonus and a commitment from Deere to not shut any plant during the life of the agreement. The agreement expires at midnight on Sep 30, 2015.
In Iowa, locations covered by the agreement are Davenport Works, Des Moines Works, Dubuque Works, Ottumwa Works and Waterloo Works, as well as three others in Waterloo - tractor and cab assembly, engine works and the foundry. Illinois locations include the harvester Works in East Moline, the Parts Distribution Center in Milan, and the Seeding Group and Cylinder Division in Moline. The Coffeyville Works in Kansas is also covered by the agreement.
Deere and UAW have agreed to not comment publicly on contract issues while negotiations are underway. A separate agreement is also being negotiated which covered 110 UAW employees at Deere facilities in Denver and Atlanta.
Deere faced a slump in sales of farm equipment in recent times due to lower prices paid to farmers for corn and soybeans. This has led to suspension of hundreds of UAW members. On Jan 2015, Deere announced workforce adjustments at several factories in Iowa and Illinois as the company continues to align the size of its manufacturing workforce to market demand for products. The actions include indefinite layoffs at five locations as well as an extended inventory adjustment shutdown at another factory.
Deere expects total equipment sales to decline 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter.
As per the latest forecast provided on Aug 25, by the USDA (U.S. Department of Agriculture), farm incomes will drop 36% from 2014 to $58.3 billion in 2015 due to declining crop and livestock prices. The forecast is down 20% from the USDA's February estimate of $73.6 billion. Yesterday, the USDA declared that livestock receipts will decrease by $19.4 billion (9.1%) in 2015 largely due to lower milk and hog prices. The statement increases risks for Deere's sales growth and makes it harder to negotiate for both the union and Deere.
Moreover, uncertainty over the 2015-2016 agriculture budget and concerns surrounding possible further increases in interest rates are weighing on farmer confidence. These factors remain headwinds for Deere.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada via branch offices as well as distributors and operates through dealers to resell products internationally.
At present, Deere has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the sector include Kubota Corporation KUBTY , AGCO Corporation AGCO and Lindsay Corporation LNN . While, Kubota Corporation and AGCO Corporation sport a Zacks Rank #1 (Strong Buy), Lindsay Corporation carries 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
DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
LINDSAY CORP (LNN): 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 manufacturer of agricultural, construction, forestry and consumer equipment, Deere & CompanyDE and the United Auto Workers (UAW) union began negotiations on a new labor agreement. Deere faced a slump in sales of farm equipment in recent times due to lower prices paid to farmers for corn and soybeans. As per the latest forecast provided on Aug 25, by the USDA (U.S. Department of Agriculture), farm incomes will drop 36% from 2014 to $58.3 billion in 2015 due to declining crop and livestock prices.
|
Some better-ranked stocks in the sector include Kubota Corporation KUBTY , AGCO Corporation AGCO and Lindsay Corporation LNN . 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 To read this article on Zacks.com click here. The manufacturer of agricultural, construction, forestry and consumer equipment, Deere & CompanyDE and the United Auto Workers (UAW) union began negotiations on a new labor agreement.
|
The manufacturer of agricultural, construction, forestry and consumer equipment, Deere & CompanyDE and the United Auto Workers (UAW) union began negotiations on a new labor agreement. In Iowa, locations covered by the agreement are Davenport Works, Des Moines Works, Dubuque Works, Ottumwa Works and Waterloo Works, as well as three others in Waterloo - tractor and cab assembly, engine works and the foundry. 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 To read this article on Zacks.com click here.
|
The manufacturer of agricultural, construction, forestry and consumer equipment, Deere & CompanyDE and the United Auto Workers (UAW) union began negotiations on a new labor agreement. A separate agreement is also being negotiated which covered 110 UAW employees at Deere facilities in Denver and Atlanta. 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 To read this article on Zacks.com click here.
|
746c20e2-d483-4363-bc64-6efe0aa8396f
|
722762.0
|
2015-08-25 00:00:00 UTC
|
Deere (DE) to Rise on Improved Housing Market; Risks Remain
|
DE
|
https://www.nasdaq.com/articles/deere-de-to-rise-on-improved-housing-market-risks-remain-2015-08-25
|
nan
|
nan
|
On Aug 24, 2015, we issued an updated research report on Deere & CompanyDE . The manufacturer of agricultural, construction, forestry and consumer equipment is poised to benefit from improvement in the nonresidential construction sector and economic recovery. However, Deere remains concerned about weak farm income.
In the third-quarter of fiscal 2015, Deere's earnings declined 34% year over year to $1.53 per share due to downturn in farm economy as well as lower demand for construction equipment. Deere expects equipment sales to decrease around 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter. The projection includes a negative currency-translation effect of about 4% for the full year and 5% for the fourth quarter.
Falling crop prices such as corn and soybean will affect farm income, which in turn, would restrain farmers from purchasing new agricultural equipment, thereby impacting Deere. Segment-wise, the company expects Agriculture and Turf equipment sales to decline 25% in fiscal 2015 due to lower commodity prices and falling farm income, which will negatively impact agricultural machinery demand.
Region-wise, Deere anticipates industry farm machinery sales in the U.S. and Canada to be down 25% for fiscal 2015. In EU28 region, sales are projected to decline 10% due to lower commodity prices and farm income as well as potential pressure on the dairy sector. In South America, industry sales of tractors and combines are expected to decline by 20% to 25% year over year due to economic uncertainty in Brazil and higher interest rates on government-sponsored financing. Sales in the Commonwealth of Independent States are expected to be down significantly due to economic pressures and tight credit conditions. Sales in Asia are projected to be down moderately, with most of the decline centered in China and India.
Notably, Deere foresees global sales for Construction & Forestry equipment to be down about 5% in fiscal 2015 including a negative currency-translation effect of about 3%. The decline reflects impact of weakening conditions in the North American energy sector as well as lower sales outside the U.S. and Canada.
In addition, uncertainty over the 2015-2016 agriculture budget and concerns surrounding possible further increases in interest rates are weighing on farmer confidence. These factors remain headwinds for Deere. Moreover, unknown impacts from any geopolitical tensions could disrupt trade, lower production and reduce stocks-to-use ratio, which in turn, will hurt growth.
However, Deere remains optimistic about the long term, based on steady investment in new products and geographies. The company expects to be solidly profitable, given 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 opportunity for Deere's growth. Deere expects its net income to be about $1.8 billion for fiscal 2015. The company projects global forestry sales to be flat to up 5% and net income from Financial Services is estimated at be around $630 million for fiscal 2015.
Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, benefiting from general economic growth. The gain reflects further economic recovery backed by positive GDP growth, dropping unemployment rates, increasing construction hiring and expectation of housing starts exceeding 1 million units this year. Further, the US Architecture Billings Index (ABI) has remained above 50 in the recent months, signaling robust conditions ahead for the industry, which bodes well for Deere.
Hence, despite low farm income, weakening conditions in the energy sector, lower commodity prices, tight credit conditions and economic pressure, Deere will benefit from improvement in the nonresidential construction sector, economic recovery as well as higher housing starts.
Deere currently carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Some better-ranked stocks in the sector include Kubota Corporation KUBTY , AGCO Corporation AGCO and Lindsay Corporation LNN . All these stocks sport a Zacks Rank #1 (Strong 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
DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
LINDSAY CORP (LNN): Free Stock Analysis Report
KUBOTA CORP ADR (KUBTY): 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.
|
Falling crop prices such as corn and soybean will affect farm income, which in turn, would restrain farmers from purchasing new agricultural equipment, thereby impacting Deere. Further, favorable trends derived from a growing, more affluent and increasing population and rising living standards will provide ample opportunity for Deere's growth. On Aug 24, 2015, we issued an updated research report on Deere & CompanyDE .
|
Segment-wise, the company expects Agriculture and Turf equipment sales to decline 25% in fiscal 2015 due to lower commodity prices and falling farm income, which will negatively impact agricultural machinery demand. Hence, despite low farm income, weakening conditions in the energy sector, lower commodity prices, tight credit conditions and economic pressure, Deere will benefit from improvement in the nonresidential construction sector, economic recovery as well as higher housing starts. 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 KUBOTA CORP ADR (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Deere expects equipment sales to decrease around 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter. Hence, despite low farm income, weakening conditions in the energy sector, lower commodity prices, tight credit conditions and economic pressure, Deere will benefit from improvement in the nonresidential construction sector, economic recovery as well as higher housing starts. 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 KUBOTA CORP ADR (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Segment-wise, the company expects Agriculture and Turf equipment sales to decline 25% in fiscal 2015 due to lower commodity prices and falling farm income, which will negatively impact agricultural machinery demand. In EU28 region, sales are projected to decline 10% due to lower commodity prices and farm income as well as potential pressure on the dairy sector. On Aug 24, 2015, we issued an updated research report on Deere & CompanyDE .
|
cad6fc4e-c437-4cb7-a7d3-d7b3eef84017
|
722763.0
|
2015-08-24 00:00:00 UTC
|
Company News for August 24, 2015
|
DE
|
https://www.nasdaq.com/articles/company-news-for-august-24-2015-2015-08-24
|
nan
|
nan
|
• Shares of Deere & Company ( DE ) plunged 8.1% after the company reported third quarter revenues of $6.84 billion, lower than the Zacks Consensus Estimate of $7.13 billion
• Hewlett-Packard Company's ( HPQ ) shares advanced 0.4% after the company posted third quarter earnings per share of $0.88 that beat the Zacks Consensus Estimate of $0.85
• Shares of Ross Stores Inc. ( ROST ) plummeted 9.5% after the company projected earnings per share in the range of $2.40-$2.45 for fiscal 2015, while analysts anticipated earnings to be at the top end of that range
• Shares of salesforce.com, inc. ( CRM ) gained almost 2% after the company posted second quarter revenues of $1.635 billion, beating the Zacks Consensus Estimate of $1.599 billion
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
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
ROSS STORES (ROST): Free Stock Analysis Report
SALESFORCE.COM (CRM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
• Shares of Deere & Company ( DE ) plunged 8.1% after the company reported third quarter revenues of $6.84 billion, lower than the Zacks Consensus Estimate of $7.13 billion • Hewlett-Packard Company's ( HPQ ) shares advanced 0.4% after the company posted third quarter earnings per share of $0.88 that beat the Zacks Consensus Estimate of $0.85 • Shares of Ross Stores Inc. ( ROST ) plummeted 9.5% after the company projected earnings per share in the range of $2.40-$2.45 for fiscal 2015, while analysts anticipated earnings to be at the top end of that range • Shares of salesforce.com, inc. ( CRM ) gained almost 2% after the company posted second quarter revenues of $1.635 billion, beating the Zacks Consensus Estimate of $1.599 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report ROSS STORES (ROST): Free Stock Analysis Report SALESFORCE.COM (CRM): 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.
|
• Shares of Deere & Company ( DE ) plunged 8.1% after the company reported third quarter revenues of $6.84 billion, lower than the Zacks Consensus Estimate of $7.13 billion • Hewlett-Packard Company's ( HPQ ) shares advanced 0.4% after the company posted third quarter earnings per share of $0.88 that beat the Zacks Consensus Estimate of $0.85 • Shares of Ross Stores Inc. ( ROST ) plummeted 9.5% after the company projected earnings per share in the range of $2.40-$2.45 for fiscal 2015, while analysts anticipated earnings to be at the top end of that range • Shares of salesforce.com, inc. ( CRM ) gained almost 2% after the company posted second quarter revenues of $1.635 billion, beating the Zacks Consensus Estimate of $1.599 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report ROSS STORES (ROST): Free Stock Analysis Report SALESFORCE.COM (CRM): 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.
|
• Shares of Deere & Company ( DE ) plunged 8.1% after the company reported third quarter revenues of $6.84 billion, lower than the Zacks Consensus Estimate of $7.13 billion • Hewlett-Packard Company's ( HPQ ) shares advanced 0.4% after the company posted third quarter earnings per share of $0.88 that beat the Zacks Consensus Estimate of $0.85 • Shares of Ross Stores Inc. ( ROST ) plummeted 9.5% after the company projected earnings per share in the range of $2.40-$2.45 for fiscal 2015, while analysts anticipated earnings to be at the top end of that range • Shares of salesforce.com, inc. ( CRM ) gained almost 2% after the company posted second quarter revenues of $1.635 billion, beating the Zacks Consensus Estimate of $1.599 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report ROSS STORES (ROST): Free Stock Analysis Report SALESFORCE.COM (CRM): 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.
|
• Shares of Deere & Company ( DE ) plunged 8.1% after the company reported third quarter revenues of $6.84 billion, lower than the Zacks Consensus Estimate of $7.13 billion • Hewlett-Packard Company's ( HPQ ) shares advanced 0.4% after the company posted third quarter earnings per share of $0.88 that beat the Zacks Consensus Estimate of $0.85 • Shares of Ross Stores Inc. ( ROST ) plummeted 9.5% after the company projected earnings per share in the range of $2.40-$2.45 for fiscal 2015, while analysts anticipated earnings to be at the top end of that range • Shares of salesforce.com, inc. ( CRM ) gained almost 2% after the company posted second quarter revenues of $1.635 billion, beating the Zacks Consensus Estimate of $1.599 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report HEWLETT PACKARD (HPQ): Free Stock Analysis Report ROSS STORES (ROST): Free Stock Analysis Report SALESFORCE.COM (CRM): 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.
|
511e690b-7c87-459d-b255-e8732c7073a5
|
722764.0
|
2015-08-23 00:00:00 UTC
|
You 'll Never Guess Which U.S. Company Is the Largest Producer of Self-Driving 4-Wheeled Vehicles
|
DE
|
https://www.nasdaq.com/articles/you-ll-never-guess-which-us-company-largest-producer-self-driving-4-wheeled-vehicles-2015
|
nan
|
nan
|
Transportation has come a long way from the days of horse-drawn carriages. In fact, the next great frontier in transport, known as autonomous driving, is already here. Self-driving vehicles are being deployed on public roads and highways across the United States today, as everyone from major automakers to tech companies battles for a piece of this emerging market. Audi's driverless A7 sedan successfully completed a two-day, 550-mile road trip from San Francisco to Las Vegas earlier this year, while Google's self-driving cars can be seen cruising the California streets on a regular basis these days.
However, self-driving vehicles and related digital data technology are transforming more than just the auto industry. The tech is also upending the agricultural industry, and perhaps to a greater extent. In fact, you'll probably be surprised to learn that Google and Tesla Motors currently take a backseat to tractor maker Deere & Company in the autonomous vehicle revolution. That's right, John Deere is, in fact, the largest producer of self-driving four-wheeled vehicles in the United States.
More connected equipment
Believe it or not, John Deere is evolving into a tech company these days, with thousands of employees whose sole job it is to write software. The company's tractors are no longer the dumb clunky metal giants they were decades ago, but rather intelligent machines that can wirelessly relay data back to farmers in real time. Using Deere's data management software, JDLink, farmers can track machine locations, secure machines to certain areas through geofencing, and monitor fuel usage, all from their mobile devices. JDLink is now available in 48 countries.
Image source: Deere & Company.
Using satellites and global positioning software, tractors can drive themselves and execute tasks such as planting seeds, while farmers can focus on other concerns like analyzing the data that is simultaneously being collected by the equipment. One of the reasons that self-driving technology has caught on faster in the agricultural space versus the consumer market is because fewer regulations exist.
While many of Deere's self-driving tractors, such as its AutoTrac fleet, suggest having an operator in the cab during use, it isn't at all necessary or legally required. In fact, U.S. federal rules governing autonomous tractors or farming gear do not currently exist. This is likely because most farming tech is used on private property, unlike the public roads that Google's self-driving cars traverse today.
John Deere AutoTrac tractor. Image source: Deere & Company.
Autonomous vehicles will undoubtedly continue to thrive in the agricultural market. However, going forward it's actually advances in data collection and management technology that should set Deere apart from rivals in the space. In fact, many argue that this technology "could be as important as the development of mechanized tractors in the first half of the 20th century and the rise of genetically modified seeds in the 1990s," according to The Wall Street Journal .
Gone are the days of running a farm with paper forms and Excel spreadsheets. New data collection systems that wirelessly communicate with equipment such as tractors offer farmers a streamlined way of efficiently collecting and analyzing massive amounts of data on everything from soil conditions to water usage to crop chemistry.
Deere's dominance in autonomous four-wheeled vehicles and its ongoing investments in digital software and precision farming equipment should help the company continue to lead the agriculture and forestry market for many years to come. The stock is currently trading near the high end of its 52-week range, at around $93 today. Nevertheless, the shares still look reasonably priced from a valuation standpoint. Moreover, the stock's price-to-sales ratio of 0.95 is markedly below the industry average P/S of 1.62. This means investors are paying roughly $0.95 for every $1 of sales today. Bottom line: Deere looks like a safe long-term bet for investors.
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 You 'll Never Guess Which U.S. Company Is the Largest Producer of Self-Driving 4-Wheeled Vehicles originally appeared on Fool.com.
Tamara Rutter owns, and The Motley Fool owns and recommends, shares of Tesla Motors. The Motley Fool owns and recommends Google (A and C shares). 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 - 2015 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.
|
The company's tractors are no longer the dumb clunky metal giants they were decades ago, but rather intelligent machines that can wirelessly relay data back to farmers in real time. Image source: Deere & Company. Deere's dominance in autonomous four-wheeled vehicles and its ongoing investments in digital software and precision farming equipment should help the company continue to lead the agriculture and forestry market for many years to come.
|
That's right, John Deere is, in fact, the largest producer of self-driving four-wheeled vehicles in the United States. Using Deere's data management software, JDLink, farmers can track machine locations, secure machines to certain areas through geofencing, and monitor fuel usage, all from their mobile devices. Image source: Deere & Company.
|
In fact, you'll probably be surprised to learn that Google and Tesla Motors currently take a backseat to tractor maker Deere & Company in the autonomous vehicle revolution. Image source: Deere & Company. Deere's dominance in autonomous four-wheeled vehicles and its ongoing investments in digital software and precision farming equipment should help the company continue to lead the agriculture and forestry market for many years to come.
|
In fact, you'll probably be surprised to learn that Google and Tesla Motors currently take a backseat to tractor maker Deere & Company in the autonomous vehicle revolution. That's right, John Deere is, in fact, the largest producer of self-driving four-wheeled vehicles in the United States. Using Deere's data management software, JDLink, farmers can track machine locations, secure machines to certain areas through geofencing, and monitor fuel usage, all from their mobile devices.
|
50b9bea6-b8fd-467e-a948-85b5288da1e1
|
722765.0
|
2015-08-21 00:00:00 UTC
|
Deere (DE) Beats on Q3 Earnings, Revenues Lag Estimates
|
DE
|
https://www.nasdaq.com/articles/deere-de-beats-on-q3-earnings-revenues-lag-estimates-2015-08-21
|
nan
|
nan
|
Deere & Company'sDE third-quarter fiscal 2015 earnings declined around 34% year over year to $1.53 per share due to downturn in farm economy as well as lower demand for construction equipment. Earnings, however, beat the Zacks Consensus Estimate of $1.47.
Deere & Company - Earnings Surprise | FindTheBest
Operational Update
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $6.84 billion, down 21.6% year over year due to lower demand for agricultural and construction equipment. Revenues missed the Zacks Consensus Estimate of $7.13 billion. Region-wise, equipment net sales were down 21% in the U.S. and Canada, and 23% in rest of the world.
Cost of sales in the quarter decreased 19% year over year to $5.36 billion. Gross profit for the quarter came in at $1.48 billion, down 30% year over year. Selling, administrative and general expenses decreased 8% to $755 million. Operating profit declined 39% year over year to $0.84 billion.
Operating income for equipment operations plunged 47% year over year to $601 million due to the impact of lower shipment volumes, less favorable product mix and unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization.
Segment Performance
The Agriculture & Turf segment's sales decreased 24% year over year to $5.3 billion due to lower shipment volumes and unfavorable effects of currency translation, partly offset by price realization. Operating profit of the segment slumped 50% year over year to $472 million as lower shipment volumes, less favorable product mix and unfavorable effects of foreign currency exchange were partially offset by lower production costs and price realization.
Construction & Forestry sales went down 13% year over year to $1.53 billion impacted by lower shipment volumes and unfavorable effects of currency translation, partially offset by price realization. Operating profit for the segment declined 33.5% year over year to $129 million.
Net revenues at Deere's Financial Services operations were $636 million in the reported quarter, down 3% year over year. The segment's operating profit was $239 million, compared with $249 million in the prior-year quarter. Net income in this segment was $153.4 million compared with $162.3 million in the year-ago quarter. The decline was due to less favorable financing spreads, partially offset by lower selling, administrative and general expenses.
Financials
Deere reported cash and cash equivalents of $4.13 billion at the end of third-quarter fiscal 2015 compared with $3.03 billion in the prior-year quarter. The company generated $1,192 million in cash from operating activities for the period of nine months ended Jul 31, 2015 compared with $682 million in the prior-year comparable period. As of the third-quarter end, long-term borrowings were $23.2 billion, compared with $24 billion in the third quarter of 2014.
Looking Ahead
Deere expects total equipment sales to decline 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter. The projection includes a negative currency-translation effect of about 4% for the full year and 5% for the fourth quarter. For fiscal 2015, net income attributable to Deere & Company is anticipated to be about $1.8 billion.
Deere remains optimistic about the long term, based on steady investment in new products and geographies. Further, favorable trends derived from a growing, more affluent and increasing population shows ample opportunity for Deere's growth.
Segment-wise, Deere estimates Agriculture and Turf equipment sales to decline 25% in fiscal 2015 due to lower commodity prices and falling farm incomes, which, in turn, will have a negative impact on agricultural machinery demand. However, positive circumstances in the U.S. livestock sector will support some improvement in sales of smaller sizes of equipment.
In the EU28, sales are projected to decline 10% due to lower crop prices and farm income as well as potential pressure on the dairy sector. In South America, industry sales of tractors and combines are expected to decline by 20% to 25% year over year due to economic uncertainty in Brazil and higher interest rates on government-sponsored financing.
Sales in the Commonwealth of Independent States are expected to be down significantly due to economic pressures and tight credit conditions. Sales in Asia are projected to be down moderately, with most of the decline centered in China and India. Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, benefiting from general economic growth.
The company foresees global sales for Construction & Forestry equipment to be down about 5% in 2015 including a negative currency-translation effect of about 3%. The decline reflects impact of weakening 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 flat to up 5% in comparison with last year's levels. Net income from Financial Services is estimated at around $630 million for the full year.
Our View
Given 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.
Meanwhile, Deere's plan to serve a larger global customer base is making progress, which will drive growth. However, falling crop prices, such as of corn and soybean, will affect farm income. This will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada via branch offices as well as distributors and operates through dealers to resell products internationally.
At present, Deere has a Zacks Rank #2 (Buy).
Other favorably ranked stocks in the construction sector are AGCO Corp. AGCO , Kubota Corp. KUBTY and Lindsay Corp. LNN . All of these stocks carry a Zacks Rank #1 (Strong 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
DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
LINDSAY CORP (LNN): Free Stock Analysis Report
KUBOTA CORP ADR (KUBTY): 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 decline was due to less favorable financing spreads, partially offset by lower selling, administrative and general expenses. In the EU28, sales are projected to decline 10% due to lower crop prices and farm income as well as potential pressure on the dairy sector. Deere & Company'sDE third-quarter fiscal 2015 earnings declined around 34% year over year to $1.53 per share due to downturn in farm economy as well as lower demand for construction equipment.
|
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 KUBOTA CORP ADR (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company'sDE third-quarter fiscal 2015 earnings declined around 34% year over year to $1.53 per share due to downturn in farm economy as well as lower demand for construction equipment. Deere & Company - Earnings Surprise | FindTheBest Operational Update Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $6.84 billion, down 21.6% year over year due to lower demand for agricultural and construction equipment.
|
Deere & Company - Earnings Surprise | FindTheBest Operational Update Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $6.84 billion, down 21.6% year over year due to lower demand for agricultural and construction equipment. Looking Ahead Deere expects total equipment sales to decline 21% year over year in fiscal 2015 and to be down about 24% year over year in the fourth quarter. Deere & Company'sDE third-quarter fiscal 2015 earnings declined around 34% year over year to $1.53 per share due to downturn in farm economy as well as lower demand for construction equipment.
|
Deere & Company - Earnings Surprise | FindTheBest Operational Update Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $6.84 billion, down 21.6% year over year due to lower demand for agricultural and construction equipment. Segment-wise, Deere estimates Agriculture and Turf equipment sales to decline 25% in fiscal 2015 due to lower commodity prices and falling farm incomes, which, in turn, will have a negative impact on agricultural machinery demand. Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, benefiting from general economic growth.
|
0162201a-fb9c-4153-afed-a6b4ade16294
|
722766.0
|
2015-08-21 00:00:00 UTC
|
U.S. Stock Futures Brace For More Selling As Chinese Manufacturing Shows Decay
|
DE
|
https://www.nasdaq.com/articles/us-stock-futures-brace-more-selling-chinese-manufacturing-shows-decay-2015-08-21
|
nan
|
nan
|
Wall Street was bracing for another shellacking as signs of further deterioration in the Chinese economy, and further weakness in the oil market drove stock futures as much as 0.60% lower into Friday's open. China's Caixin manufacturing index fell to its lowest level in six years, sparking a selling frenzy in global equity markets and leaving China's Shanghai more than 4% lower, followed by a 3% free-fall in the Nikkei and more than -1.0% across Europe.
Earnings results provided little support to an already defensive market. John Deere ( DE ) beat Wall Street estimates for both earnings and revenue, but said that the sluggish farm economy will negatively impact revenue for 2015. Hewlett Packard ( HPQ ) also beat EPS estimates, but sales came in light, and earnings for Q4 were set below expectations.
Commodity prices remain mixed with gold still climbing on safe-haven demand, oil is trading back below $41 per barrel, and copper is giving up some of Thursday's gain.
Friday'seconomic calendaris light with only the purchasing manager's preliminary manufacturing index for August at 9:45ET, expected to increase to 54.2 from July's final 53.8.
-Dow Jones Industrial down 0.46%
-S&P 500 futures down 0.35%
-Nasdaq 100 futures down 0.59%
SENTIMENT
Nikkei down 2.98%
Hang Seng down 1.53%
Shanghai Composite down 4.27%
FTSE-100 down 1.47%
DAX-30 down 1.09%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: Lower
(-) Chip stocks: Lower
(-) Software stocks: Lower
(-) Hardware stocks: Lower
(-) Internet stocks: Lower
(-) Drug stocks: Lower
(-) Financial stocks: Lower
(-) Retail stocks: Lower
(-) Industrial stocks: Lower
(-) Airlines: Lower
(-) Autos: Lower
UPSIDE MOVERS:
(+) SPIL (+21.68%) Advanced Semiconductor Engineering ( ASX ) to commence tender offer for Taiwan and U.S shares
(+) ARAY (+17.47%) Missed Q2 estimates, but received a multi-system order from 21st Century Oncology ( ICC )
(+) FL (+0.66%) Reported better-than-expected Q2 EPS
DOWNSIDE MOVERS:
(-) TFM (-15.38%) Missed Q2 EPS and revenue, guides FY15 EPS below street estimates
(-) INTU (-7.70%) Reported below consensus Q2 revenue, issued weak FY forecast, plans to divest Demandforce, QuickBase and Quicken
(-) DE (-4.58%) Lowered FY15 sales guidance on downturn in farm economy
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.
|
Wall Street was bracing for another shellacking as signs of further deterioration in the Chinese economy, and further weakness in the oil market drove stock futures as much as 0.60% lower into Friday's open. Commodity prices remain mixed with gold still climbing on safe-haven demand, oil is trading back below $41 per barrel, and copper is giving up some of Thursday's gain. (+) SPIL (+21.68%) Advanced Semiconductor Engineering ( ASX ) to commence tender offer for Taiwan and U.S shares (+) ARAY (+17.47%) Missed Q2 estimates, but received a multi-system order from 21st Century Oncology ( ICC ) (+) FL (+0.66%) Reported better-than-expected Q2 EPS
|
John Deere ( DE ) beat Wall Street estimates for both earnings and revenue, but said that the sluggish farm economy will negatively impact revenue for 2015. (-) TFM (-15.38%) Missed Q2 EPS and revenue, guides FY15 EPS below street estimates (-) INTU (-7.70%) Reported below consensus Q2 revenue, issued weak FY forecast, plans to divest Demandforce, QuickBase and Quicken (-) DE (-4.58%) Lowered FY15 sales guidance on downturn in farm economy The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Wall Street was bracing for another shellacking as signs of further deterioration in the Chinese economy, and further weakness in the oil market drove stock futures as much as 0.60% lower into Friday's open.
|
(-) TFM (-15.38%) Missed Q2 EPS and revenue, guides FY15 EPS below street estimates (-) INTU (-7.70%) Reported below consensus Q2 revenue, issued weak FY forecast, plans to divest Demandforce, QuickBase and Quicken (-) DE (-4.58%) Lowered FY15 sales guidance on downturn in farm economy The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Wall Street was bracing for another shellacking as signs of further deterioration in the Chinese economy, and further weakness in the oil market drove stock futures as much as 0.60% lower into Friday's open. China's Caixin manufacturing index fell to its lowest level in six years, sparking a selling frenzy in global equity markets and leaving China's Shanghai more than 4% lower, followed by a 3% free-fall in the Nikkei and more than -1.0% across Europe.
|
Wall Street was bracing for another shellacking as signs of further deterioration in the Chinese economy, and further weakness in the oil market drove stock futures as much as 0.60% lower into Friday's open. (-) TFM (-15.38%) Missed Q2 EPS and revenue, guides FY15 EPS below street estimates (-) INTU (-7.70%) Reported below consensus Q2 revenue, issued weak FY forecast, plans to divest Demandforce, QuickBase and Quicken (-) DE (-4.58%) Lowered FY15 sales guidance on downturn in farm economy The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. China's Caixin manufacturing index fell to its lowest level in six years, sparking a selling frenzy in global equity markets and leaving China's Shanghai more than 4% lower, followed by a 3% free-fall in the Nikkei and more than -1.0% across Europe.
|
182af4d6-f000-4323-97fe-4485ce231237
|
722767.0
|
2015-08-21 00:00:00 UTC
|
Deere & Company (DE) Beats on Q3 Earnings, Revenues Lag
|
DE
|
https://www.nasdaq.com/articles/deere-company-de-beats-on-q3-earnings-revenues-lag-2015-08-21
|
nan
|
nan
|
Deere & Company (DE) is the world's leading manufacturer of agricultural machinery with a market capitalization of $30.7 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, Construction & Forestry equipment sales are expected to grow as the leading indicators for construction activity continue to trend up, boding well for Deere.
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 2015 earnings release.
Estimate Trend & Surprise History
Investors should note that earnings estimate for Deere for fiscal 2016 and 2017 has been portraying an uptrend over the past 60 days. Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 21.61%.
Earnings Ahead of Estimates
Deere posted in earnings of $1.53 per share in the third quarter, beating the Zacks Consensus Estimate of $1.47. However, earnings declined 34% year over year due to lower demand for agricultural and construction equipment.
Revenues Came Ahead
Deere reported third quarter revenues of $6.840 billion, falling short of the Zacks Consensus Estimate of $7.129 billion.
Key Stats/Developments to Note
Deere projects total equipment sales to decline 21% year over year in fiscal 2015 and to be down about 24% for the fourth quarter compared with year-ago periods. The projection includes a negative currency-translation effect of about 4% for the full year and 5% for the fourth quarter. For fiscal 2015, net income attributable to Deere & Company is anticipated to be about $1.8 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #2 (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!
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.
|
Deere & Company (DE) is the world's leading manufacturer of agricultural machinery with a market capitalization of $30.7 billion. 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.
|
Earnings Ahead of Estimates Deere posted in earnings of $1.53 per share in the third quarter, beating the Zacks Consensus Estimate of $1.47. Revenues Came Ahead Deere reported third quarter revenues of $6.840 billion, falling short of the Zacks Consensus Estimate of $7.129 billion. Key Stats/Developments to Note Deere projects total equipment sales to decline 21% year over year in fiscal 2015 and to be down about 24% for the fourth quarter compared with year-ago periods.
|
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 Ahead of Estimates Deere posted in earnings of $1.53 per share in the third quarter, beating the Zacks Consensus Estimate of $1.47. Revenues Came Ahead Deere reported third quarter revenues of $6.840 billion, falling short of the Zacks Consensus Estimate of $7.129 billion.
|
Estimate Trend & Surprise History Investors should note that earnings estimate for Deere for fiscal 2016 and 2017 has been portraying an uptrend over the past 60 days. However, earnings declined 34% year over year due to lower demand for agricultural and construction equipment. Deere & Company (DE) is the world's leading manufacturer of agricultural machinery with a market capitalization of $30.7 billion.
|
18b84860-00b0-4c4e-b97f-8a6dcbc7102e
|
722768.0
|
2015-08-20 00:00:00 UTC
|
Will Deere & Company's (DE) Earnings Surprise in Q3?
|
DE
|
https://www.nasdaq.com/articles/will-deere-companys-de-earnings-surprise-in-q3-2015-08-20
|
nan
|
nan
|
Deere & CompanyDE is scheduled to report third-quarter fiscal 2015 results on Aug 21, before the market opens.
Over the last four trailing quarters, the agricultural equipment maker generated a positive average earnings surprise of 21.61%, surpassing estimates in all quarters. Let's see how things are shaping up prior to this announcement.
Factors at Play
For the third quarter of fiscal 2015, Deere projected a 17% year-over-year decline in sales, mainly because of falling crop prices, such as corn and soybean, which will affect farm income. However, Deere will benefit from improvement in the nonresidential construction sector, higher housing starts as well as introduction of innovative product.
Notably, Deere has been persistently shedding its non-core assets in order to become a more focused and profitable company. Consequently, the company completed the sale of its irrigation unit and a majority interest in its landscape operations. Further, Deere's ability to meet customer demand for advanced machinery and services through product introduction will drive growth.
Earnings Whispers
Our proven model does not conclusively show that Deere will beat earnings this season. 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. This is not the case here as you will see below.
Zacks ESP: Deere's ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at $1.43.
Zacks Rank: Deere's Zacks Rank #2 when combined with a 0.00% ESP lowers the predictive power of ESP and 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 to Consider
Here are some companies which, according to our model, have the right combination of elements to post an earnings beat this quarter:
Cintas Corporation CTAS with an Earnings ESP of +1.11% has a Zacks Rank #2.
Worthington Industries, Inc. WOR has an Earnings ESP of +2.04% and a Zacks Rank #3.
ABB Ltd. ABB with an Earnings ESP of +7.14% carries 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
ABB LTD-ADR (ABB): Free Stock Analysis Report
WORTHINGTON IND (WOR): Free Stock Analysis Report
CINTAS CORP (CTAS): 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.
|
Factors at Play For the third quarter of fiscal 2015, Deere projected a 17% year-over-year decline in sales, mainly because of falling crop prices, such as corn and soybean, which will affect farm income. However, Deere will benefit from improvement in the nonresidential construction sector, higher housing starts as well as introduction of innovative product. Further, Deere's ability to meet customer demand for advanced machinery and services through product introduction will drive growth.
|
Zacks Rank: Deere's Zacks Rank #2 when combined with a 0.00% ESP lowers the predictive power of ESP and makes surprise prediction difficult. Stocks to Consider Here are some companies which, according to our model, have the right combination of elements to post an earnings beat this quarter: Cintas Corporation CTAS with an Earnings ESP of +1.11% has a Zacks Rank #2. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report WORTHINGTON IND (WOR): Free Stock Analysis Report CINTAS CORP (CTAS): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Zacks Rank: Deere's Zacks Rank #2 when combined with a 0.00% ESP lowers the predictive power of ESP and makes surprise prediction difficult. Stocks to Consider Here are some companies which, according to our model, have the right combination of elements to post an earnings beat this quarter: Cintas Corporation CTAS with an Earnings ESP of +1.11% has a Zacks Rank #2. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report WORTHINGTON IND (WOR): Free Stock Analysis Report CINTAS CORP (CTAS): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks to Consider Here are some companies which, according to our model, have the right combination of elements to post an earnings beat this quarter: Cintas Corporation CTAS with an Earnings ESP of +1.11% has a Zacks Rank #2. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report WORTHINGTON IND (WOR): Free Stock Analysis Report CINTAS CORP (CTAS): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is scheduled to report third-quarter fiscal 2015 results on Aug 21, before the market opens.
|
81e45ad0-644d-4925-be02-06938e76c35d
|
722769.0
|
2015-08-20 00:00:00 UTC
|
Pre-Market Earnings Report for August 21, 2015 : DE, FL, HIBB, GMAN
|
DE
|
https://www.nasdaq.com/articles/pre-market-earnings-report-august-21-2015-de-fl-hibb-gman-2015-08-20
|
nan
|
nan
|
The following companies are expected to report earnings prior to market open on 08/21/2015. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending July 31, 2015. The farm machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.47. This value represents a 36.91% 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 29.3%. The "days to cover" for this stock exceeds 14 days. Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.25 vs. an industry ratio of 9.40, 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, 2015. The retail (shoe) company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.69. This value represents a 7.81% 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 2nd calendar quarter where they beat the consensus by 5.74%. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2016 Price to Earnings ratio for FL is 18.38 vs. an industry ratio of 16.00, 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, 2015. The retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.28. This value represents a 12.50% decrease 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 12 days. Zacks Investment Research reports that the 2016 Price to Earnings ratio for HIBB is 13.93 vs. an industry ratio of 37.70.
Gordmans Stores, Inc. ( GMAN ) is reporting for the quarter ending July 31, 2015. The discount retail company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.13. This value represents a 18.75% increase compared to the same quarter last year. In the past year GMAN has met analyst expectations twice and beat the expectations the other two quarters. The "days to cover" for this stock exceeds 17 days.The days to cover, as reported in the 7/31/2015 short interest update, increased 143.32% from previous report on 7/15/2015. Zacks Investment Research reports that the 2016 Price to Earnings ratio for GMAN is -116.00 vs. an industry ratio of 13.30.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 ) is reporting for the quarter ending July 31, 2015. This value represents a 36.91% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter.
|
Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.25 vs. an industry ratio of 9.40, 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, 2015. This value represents a 36.91% decrease compared to the same quarter last year.
|
Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.25 vs. an industry ratio of 9.40, 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, 2015. This value represents a 36.91% decrease compared to the same quarter last year.
|
In the past year DE has beat the expectations every quarter. Deere & Company ( DE ) is reporting for the quarter ending July 31, 2015. This value represents a 36.91% decrease compared to the same quarter last year.
|
b13f2e3c-6b95-458b-bd7d-78783a1573a2
|
722770.0
|
2015-08-20 00:00:00 UTC
|
Notable Thursday Option Activity: DE, CELG, APC
|
DE
|
https://www.nasdaq.com/articles/notable-thursday-option-activity-de-celg-apc-2015-08-20
|
nan
|
nan
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 16,874 contracts have traded so far, representing approximately 1.7 million underlying shares. That amounts to about 69.4% of DE's average daily trading volume over the past month of 2.4 million shares. Particularly high volume was seen for the $90 strike put option expiring September 18, 2015 , with 2,612 contracts trading so far today, representing approximately 261,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $90 strike highlighted in orange:
Celgene Corp. (Symbol: CELG) options are showing a volume of 27,040 contracts thus far today. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 65.6% of CELG's average daily trading volume over the past month, of 4.1 million shares. Especially high volume was seen for the $130 strike call option expiring January 20, 2017 , with 7,053 contracts trading so far today, representing approximately 705,300 underlying shares of CELG. Below is a chart showing CELG's trailing twelve month trading history, with the $130 strike highlighted in orange:
And Anadarko Petroleum Corp (Symbol: APC) options are showing a volume of 27,218 contracts thus far today. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 61.2% of APC's average daily trading volume over the past month, of 4.4 million shares. Particularly high volume was seen for the $77.50 strike call option expiring September 18, 2015 , with 5,870 contracts trading so far today, representing approximately 587,000 underlying shares of APC. Below is a chart showing APC's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
For the various different available expirations for DE options , CELG options , or APC 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.
|
Particularly high volume was seen for the $90 strike put option expiring September 18, 2015 , with 2,612 contracts trading so far today, representing approximately 261,200 underlying shares of DE. Especially high volume was seen for the $130 strike call option expiring January 20, 2017 , with 7,053 contracts trading so far today, representing approximately 705,300 underlying shares of CELG. Particularly high volume was seen for the $77.50 strike call option expiring September 18, 2015 , with 5,870 contracts trading so far today, representing approximately 587,000 underlying shares of APC.
|
Below is a chart showing DE's trailing twelve month trading history, with the $90 strike highlighted in orange: Celgene Corp. (Symbol: CELG) options are showing a volume of 27,040 contracts thus far today. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 65.6% of CELG's average daily trading volume over the past month, of 4.1 million shares. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 61.2% of APC's average daily trading volume over the past month, of 4.4 million shares.
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 16,874 contracts have traded so far, representing approximately 1.7 million underlying shares. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 65.6% of CELG's average daily trading volume over the past month, of 4.1 million shares. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 61.2% of APC's average daily trading volume over the past month, of 4.4 million shares.
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 16,874 contracts have traded so far, representing approximately 1.7 million underlying shares. Particularly high volume was seen for the $90 strike put option expiring September 18, 2015 , with 2,612 contracts trading so far today, representing approximately 261,200 underlying shares of DE. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 61.2% of APC's average daily trading volume over the past month, of 4.4 million shares.
|
bc1b7337-dcae-4038-9a9a-779deb9545ed
|
722771.0
|
2015-08-18 00:00:00 UTC
|
Dig this: SiteOne Landscape Supply files for a $100 million IPO
|
DE
|
https://www.nasdaq.com/articles/dig-siteone-landscape-supply-files-100-million-ipo-2015-08-18
|
nan
|
nan
|
SiteOne Landscape Supply, a wholesale distributor of commercial and residential landscape supplies, filed on Tuesday with the SEC to raise up to $100 million in an initial public offering.
The company was established when Deere & Company ( DE ) entered the market for wholesale landscape distribution. CD&R acquired a majority stake in the company at the end of 2013.
The Roswell, GA-based company, which was founded in 2001 and booked $1.3 billion in sales for the 12 months ended June 30, 2015, plans to list under the symbol SITE. Deutsche Bank, Goldman Sachs and UBS Investment Bank are the joint bookrunners on the deal. No pricing terms were disclosed.
The article Dig this: SiteOne Landscape Supply files for a $100 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
SiteOne Landscape Supply, a wholesale distributor of commercial and residential landscape supplies, filed on Tuesday with the SEC to raise up to $100 million in an initial public offering. The Roswell, GA-based company, which was founded in 2001 and booked $1.3 billion in sales for the 12 months ended June 30, 2015, plans to list under the symbol SITE. The company was established when Deere & Company ( DE ) entered the market for wholesale landscape distribution.
|
SiteOne Landscape Supply, a wholesale distributor of commercial and residential landscape supplies, filed on Tuesday with the SEC to raise up to $100 million in an initial public offering. The company was established when Deere & Company ( DE ) entered the market for wholesale landscape distribution. The Roswell, GA-based company, which was founded in 2001 and booked $1.3 billion in sales for the 12 months ended June 30, 2015, plans to list under the symbol SITE.
|
SiteOne Landscape Supply, a wholesale distributor of commercial and residential landscape supplies, filed on Tuesday with the SEC to raise up to $100 million in an initial public offering. The company was established when Deere & Company ( DE ) entered the market for wholesale landscape distribution. The Roswell, GA-based company, which was founded in 2001 and booked $1.3 billion in sales for the 12 months ended June 30, 2015, plans to list under the symbol SITE.
|
SiteOne Landscape Supply, a wholesale distributor of commercial and residential landscape supplies, filed on Tuesday with the SEC to raise up to $100 million in an initial public offering. The company was established when Deere & Company ( DE ) entered the market for wholesale landscape distribution. The Roswell, GA-based company, which was founded in 2001 and booked $1.3 billion in sales for the 12 months ended June 30, 2015, plans to list under the symbol SITE.
|
f9f70ba7-e11f-412d-8d36-d39e1855db44
|
722772.0
|
2015-08-13 00:00:00 UTC
|
MOO, SYT, MON, DE: Large Outflows Detected at ETF
|
DE
|
https://www.nasdaq.com/articles/moo-syt-mon-de-large-outflows-detected-etf-2015-08-13
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $26.6 million dollar outflow -- that's a 2.0% decrease week over week (from 25,600,000 to 25,100,000). Among the largest underlying components of MOO, in trading today Syngenta AG (Symbol: SYT) is down about 0.6%, Monsanto Co. (Symbol: MON) is off about 0.2%, and Deere & Co. (Symbol: DE) is lower by about 0.4%. For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average:
Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $58.08 as the 52 week high point - that compares with a last trade of $53.23. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $58.08 as the 52 week high point - that compares with a last trade of $53.23. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
|
For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $58.08 as the 52 week high point - that compares with a last trade of $53.23. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $26.6 million dollar outflow -- that's a 2.0% decrease week over week (from 25,600,000 to 25,100,000).
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $26.6 million dollar outflow -- that's a 2.0% decrease week over week (from 25,600,000 to 25,100,000). For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $58.08 as the 52 week high point - that compares with a last trade of $53.23. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
|
For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $58.08 as the 52 week high point - that compares with a last trade of $53.23. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
|
96630338-263f-407e-a178-1ab71cab2568
|
722773.0
|
2015-08-06 00:00:00 UTC
|
Why Illinois Tool Works is a Top Socially Responsible Dividend Stock (ITW)
|
DE
|
https://www.nasdaq.com/articles/why-illinois-tool-works-top-socially-responsible-dividend-stock-itw-2015-08-06
|
nan
|
nan
|
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 2.2% 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 0.41% of the underlying holdings of the fund, which owns $1,873,667 worth of ITW shares.
The annualized dividend paid by Illinois Tool Works, Inc. is $1.94/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 06/26/2015. 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.
|
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 ).
|
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 2.2% 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 0.41% of the underlying holdings of the fund, which owns $1,873,667 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.
|
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 2.2% 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 0.41% of the underlying holdings of the fund, which owns $1,873,667 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.
|
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.
|
e619d19f-2670-4bfc-800c-48a6af3ae89e
|
722774.0
|
2015-08-05 00:00:00 UTC
|
Harman (HAR) Q4 Earnings, Revenues Top Estimates; Up Y/Y - Analyst Blog
|
DE
|
https://www.nasdaq.com/articles/harman-har-q4-earnings-revenues-top-estimates-up-y-y-analyst-blog-2015-08-05
|
nan
|
nan
|
Harman International Industries Inc.HAR yesterday concluded fiscal 2015 on a strong note with better-than-expected fourth-quarter results. The company's top line and bottom line improved year over year as well.
Harman reported non-GAAP earnings of $1.37 per share in the fourth quarter, which topped the Zacks Consensus Estimate of $1.32 and marked a year-over-year improvement of 9.6%. On a GAAP basis, earnings came in at $1.01 per share compared with 62 cents reported in the year-ago quarter.
The year-over-year growth in the bottom line resulted from robust revenue growth and improved gross margin across divisions.
Harman International Industries Inc. - Earnings Surprise | FindTheBest
Revenues
Revenues jumped 16% from the year-ago quarter to $1.679 billion and surpassed the Zacks Consensus Estimate of $1.564 billion. Moreover, excluding the foreign currency translation effect, revenues grew 28% year over year. The company witnessed strong revenue growth across all its divisions.
Infotainment revenues rose 7% from the year-ago quarter to $823 million, primarily backed by strong automotive production, expansion of the recently launched platforms and higher take rate. During the quarter, Deere & Company DE selected Harman to design an infotainment system for their John Deere farm equipment.
Lifestyle revenues increased 13% year over year to $479 million led by higher home and multimedia and car audio sales. Auto makers such as BMW, Daimler, Hyundai and Lexus selected Harman's technology for their car lines.
Professional division revenues increased 15% from the year-ago quarter to $285 million, primarily driven by last-quarter's buyout of AMX that broadened the company's product portfolio to enterprise automation and control and video switching.
Revenues at the company's newly formed Services division were $89 million. The segment includes the contribution from Symphony Teleca Corporation, acquired last year.
Margins
Total gross margin improved 210 basis points (bps) to 29.4% driven by favorable product mix. Gross margin at Infotainment and Lifestyle divisions improved 230 bps and 130 bps to 24.6% and 31%, respectively, mainly on the back of improved leverage on fixed production costs and benefits from footprint migration restructuring initiatives.
Gross margin at Professional division improved 140 bps to 40.1% primarily driven by expansion of product portfolio into enterprise automation and video switching.
Selling, general and administrative (SG&A) expense as a percentage of revenues increased 150 bps to 20.4% on a year-over-year basis, mainly due to increased investment in marketing, research and development, and expansion of product portfolio.
Non-GAAP operating income increased 24% year over year to $150 million. Operating margin expanded 60 bps to 8.9% in the quarter primarily driven by improved gross margin, partially offset by higher SG&A expenses as a percentage of total revenue.
Non-GAAP net income increased 14.2% year over year to $99.9 million or $1.37 per share.
Balance Sheet & Cash Flow
As of Jun 30, 2015, cash and cash equivalents were $649.5 million compared with $592.3 million at the end of the previous quarter. Long-term debt was $797.5 million at the end of the fiscal year. The company had $912 million available under its revolving credit facility.
During the fourth-quarter conference call, the company stated that it will issue fiscal 2016 outlook at Investor Day to be held on Aug 6.
Our Take
We believe that Harman's new manufacturing capacities, growing product pipeline, solid patent portfolio, new awards as well as product launches will boost the top line and profitability in fiscal 2016 and beyond. Moreover, the company continues to expand on the back of its partnerships with Apple AAPL and Google GOOGL , which is a significant positive.
However, the automotive market which accounts for approximately 69% of Harman's net sales is not without challenges. The space is currently volatile, primarily due to the sluggish economic growth, which is likely to impact the company's near-term performance.
Harman is also exposed to significant customer concentration risks with its top four customers accounting for roughly half of the revenues. None of these companies have long-term deal with Harman and therefore the termination of any contract would significantly impact results.
Currently, Harman carries a Zacks Rank #4 (Sell).
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
APPLE INC (AAPL): Free Stock Analysis Report
HARMAN INTL IND (HAR): Free Stock Analysis Report
GOOGLE INC-CL A (GOOGL): 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.
|
Professional division revenues increased 15% from the year-ago quarter to $285 million, primarily driven by last-quarter's buyout of AMX that broadened the company's product portfolio to enterprise automation and control and video switching. Gross margin at Professional division improved 140 bps to 40.1% primarily driven by expansion of product portfolio into enterprise automation and video switching. Harman International Industries Inc.HAR yesterday concluded fiscal 2015 on a strong note with better-than-expected fourth-quarter results.
|
Gross margin at Professional division improved 140 bps to 40.1% primarily driven by expansion of product portfolio into enterprise automation and video switching. Operating margin expanded 60 bps to 8.9% in the quarter primarily driven by improved gross margin, partially offset by higher SG&A expenses as a percentage of total revenue. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report HARMAN INTL IND (HAR): Free Stock Analysis Report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Professional division revenues increased 15% from the year-ago quarter to $285 million, primarily driven by last-quarter's buyout of AMX that broadened the company's product portfolio to enterprise automation and control and video switching. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report HARMAN INTL IND (HAR): Free Stock Analysis Report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here. Harman International Industries Inc.HAR yesterday concluded fiscal 2015 on a strong note with better-than-expected fourth-quarter results.
|
Selling, general and administrative (SG&A) expense as a percentage of revenues increased 150 bps to 20.4% on a year-over-year basis, mainly due to increased investment in marketing, research and development, and expansion of product portfolio. Harman International Industries Inc.HAR yesterday concluded fiscal 2015 on a strong note with better-than-expected fourth-quarter results. During the quarter, Deere & Company DE selected Harman to design an infotainment system for their John Deere farm equipment.
|
a077879c-81f0-4d0a-90e2-2694c58d8311
|
722775.0
|
2015-07-19 00:00:00 UTC
|
3 Stocks to Watch in Agriculture
|
DE
|
https://www.nasdaq.com/articles/3-stocks-watch-agriculture-2015-07-19
|
nan
|
nan
|
If you are like most Americans, you woke up today and had breakfast. Then a little later you had lunch, and a bit after that you had dinner. You probably snacked in between, too. Yup, eating will never go out of style, which is a good reason to watch these stocks despite the commodity nature of the agriculture business: Agrium (USA) , Deere & Company , and Monsanto Company .
Supplying the growers
Agrium is a Canadian company with operations throughout the Americas. It breaks its business down into two parts, retail stores and fertilizer. Essentially, it sells just about everything a farmer needs to grow crops. Unlike competitors, which focus heavily on just fertilizer, Agrium gives you a much more diversified exposure to the agriculture space.
That worked out really well in mid-2013 when one of the two global consortiums that sell potash broke apart in Europe. That single event sent potash prices reeling and dragged down potash producers. However, because of Agrium's more diversified portfolio, it wasn't hurt nearly as much as competitors.
That said, Agrium's earnings did fall by more than 50% between 2011-2014, as commodities around the world pulled back from their highs. But the company was still soundly in the black, earning nearly $5 a share in 2014. So, if you are looking for an agricultural supplier, this is one stock to put on your watch list.
The big green machines
Another supplier to the agriculture market worth watching is Deere & Company. Any little boy with a green toy tractor will instantly recognize this industry icon's full size machines plying the fields. It is one of the world's largest producers of agricultural mechanization equipment -- tractors and the like. It also makes earth moving and forestry equipment.
These are complex machines that are increasingly including technology to improve productivity. While they are long-lived in nature, they are constantly in demand and also involve a lot of upkeep. In fact, farmers can only put off spending on such equipment for just so long before it breaks, wears out, or newer products offer better economics. That helps explain why Deere's top line has only declined twice between 2005-2014 (in 2009 and 2014) despite extreme volatility in the commodity end markets where its equipment gets used.
Moreover, the company has a long history of rewarding shareholders with annual dividend increases. Upping the disbursement in each of the last 10 years, leading to a near quadrupling of the payment.
More than just seeds
Another major agricultural player is seed provider Monsanto. Selling seeds may not sound like big business, but it actually is. That's because Monsanto's seeds are specialized to highlight particular traits, such as drought and parasite resistance, and yield. It also makes chemicals that protect crops, as well, like Roundup weed killer
There are some issues going against Monsanto today, notably a push back against so-called genetically modified foods. Although the trend toward more natural foods is something to watch, humans were modifying crops well before Monsanto was incorporated. In fact, in order to keep up with global demand for food, some argue we'll have no choice but to embrace them. So this may not be a huge issue unless so called GMOs bother you.
The second notable issue to consider here is that Monsanto's revenues will track along with the agriculture markets its serves. It's pretty easy to see why -- if farmers don't order seeds, Monsanto's sales go down. But that's a part of the cyclical nature of the business and is simply something an investor has to deal with. Still, because we have to eat and Monsanto is a big player in the agriculture space, downturns could turn into long-term buying opportunities.
It's also worth noting that Monsanto is working hard to keep ahead of the pack. It has historically used about 10% of revenues for research and development, and has deals with major chemical companies that should help stretch its R&D dollars and industry reach. And it has massive market penetration in several key markets. Monsanto really is the 800-pound gorilla in seeds.
Helping the farmers
Although Agrium, Deere, and Monsanto aren't farmers, they all touch the agriculture industry in key ways. Essentially, the companies provide farmers the things they need to do the dirty work. If you like the farm space, these are three interesting stocks to watch in agriculture. At the very least, the trio will give you a quick overview of what's going on in the broader agriculture market.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act quickly, you could be among the savvy investors who enjoy the profits from this stunning change. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article 3 Stocks to Watch in Agriculture originally appeared on Fool.com.
Reuben Brewer 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 - 2015 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.
|
It has historically used about 10% of revenues for research and development, and has deals with major chemical companies that should help stretch its R&D dollars and industry reach. Yup, eating will never go out of style, which is a good reason to watch these stocks despite the commodity nature of the agriculture business: Agrium (USA) , Deere & Company , and Monsanto Company . The big green machines Another supplier to the agriculture market worth watching is Deere & Company.
|
Yup, eating will never go out of style, which is a good reason to watch these stocks despite the commodity nature of the agriculture business: Agrium (USA) , Deere & Company , and Monsanto Company . The big green machines Another supplier to the agriculture market worth watching is Deere & Company. More than just seeds Another major agricultural player is seed provider Monsanto.
|
Yup, eating will never go out of style, which is a good reason to watch these stocks despite the commodity nature of the agriculture business: Agrium (USA) , Deere & Company , and Monsanto Company . The big green machines Another supplier to the agriculture market worth watching is Deere & Company. Helping the farmers Although Agrium, Deere, and Monsanto aren't farmers, they all touch the agriculture industry in key ways.
|
Yup, eating will never go out of style, which is a good reason to watch these stocks despite the commodity nature of the agriculture business: Agrium (USA) , Deere & Company , and Monsanto Company . The big green machines Another supplier to the agriculture market worth watching is Deere & Company. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
|
98f7010a-cf70-4d14-95f8-f2fdc51ea8ea
|
722776.0
|
2015-07-15 00:00:00 UTC
|
Deere & Co.: Great Company But A Little Pricey
|
DE
|
https://www.nasdaq.com/articles/deere-co-great-company-little-pricey-2015-07-15
|
nan
|
nan
|
By Rob Wilson :
Readers Note: Refer to leehillequity.com to download the Excel file containing data referenced below as well as the valuation model.
Deere & Co. (NYSE: [[DE]]) is a company I came across twice in recent weeks - once as an investment made by Berkshire Hathaway (BRK.A) (BRK.B) as reflected in their annual report and again in this article . The author of the 2nd article points out some appealing characteristics of Deere & Co. and then asks some very good questions regarding potentially "not so nice" characteristics about the company. These questions require further analysis, which I aim to answer followed by my sense of value. Of the questions posed from the linked article, I'll focus on what I consider to be the most important; refer to the article for a complete list of the author's questions. Here is an excerpt:
Pension & OPEB Plans
Regarding the first question, there are a couple of ways to sanity check pension and other post-employment benefit ((OPEB)) assumptions. One way is to analyze these assumptions over time and the other to compare with peers. As the author in the above linked article noted, pension net liabilities totaled $0.8B while OPEB net liabilities totaled $5.1B for a total underfunded amount of $5.9B as of 10/31/14 (DE's fiscal year-end is 10/31). Throughout this article all data and quotations are from DE's 10-K and 10-Q reports unless otherwise noted. Based on the below pension and OPEB charts there are a few items to note.
(click to enlarge)
(Source: DE's 10-K reports)
(click to enlarge)
(Source: DE's 10-K reports)
The discount rates used to calculate the present value of the post-retirement obligation balance "were based on hypothetical AA yield curves represented by a series of annualized individual discount rates. These discount rates represent the rates at which the company's benefit obligations could effectively be settled at the October 31 measurement dates." The higher the yield curves (see the black line's data point in '08), the higher the discount rate and the lower the obligation. The 2009 10-K states "The increase in the pension and OPEB net liabilities in 2009 vs. 2008 was primarily due to the decrease in the discount rates for the liabilities." As you can see, the gross obligation (and gross obligation / total assets) pops in '09 for both the pension and OPEB liabilities by a combined $4.7B as a result of a lower discount rate.
In addition to an increase in the obligation amount from '08 to '09, DE's accumulated other comprehensive income ((OCI)) decreased by $2.7B, net of tax, largely as a result of the increased retirement obligation balance. With anything complex, I always try to simplify. As liabilities increase, and holding assets constant, equity must decrease to maintain the accounting truth that A = L + E. Low interest rates were and continue to be a significant contributing factor to increased net liabilities and reduction in OCI which reduces total shareholders' equity.
Depending on your view, the increase in liabilities and decrease to shareholders' equity from a lower discount rate will be limited in the future dependent upon how low you think interest rates can go. If interest rates returned to '08 levels of 8%, about $4.8B of the $5.9B underfunded post-retirement obligation (as of 10/31/14) would be eliminated based on my math, simply from discounting the obligation at a higher rate. Stepping back to see the big picture, increased interest rates would reduce the benefit obligation but would likely hurt business overall since a significant portion of the large ticket items DE sells are financed. Low rates improve affordability for customers increasing the volume of product sold. The interest rate sensitivity impact to retirement plan's net liabilities is located in the Critical Accounting Policies section of the 10-K (also shown below).
(Source: DE's 10-K reports)
If the actual return on plan assets is less than the expected return on plan assets, the difference would be recorded in OCI and amortized through net income over time. For the pension plan, the actual return on plan assets exceeded the long-term expected return for 7 of 10 years. For the OPEB plan, the actual return exceeded the expected return for 6 of 10 years. Both plans' actual return experienced significant losses in '08 coincident with the financial crisis. The data and chart for the OPEB actual vs. expected return is included in the model. Although the long-term expected rates of return seemed aggressive at first glance, the below chart illustrates the company has been able to consistently achieve those returns with the exception of a few years including the outlier year 2008. Although past performance on plan assets is no guarantee of future performance, at least we know underperformance in the past has not been a recurring issue with more years beating performance objectives than not.
(click to enlarge)
(Source: DE's 10-K reports)
The discount rate and the expected long-term rate of return on plan assets should be consistent, and that appears to be the case over the long run, save fluctuations in the discount rate in '08 due to the financial crisis.
Another critical accounting assumption for the OPEB plan is the health care cost trend rate, or medical expense inflation shown in the chart below by year.
(click to enlarge)
(Source: DE's 10-K reports)
As noted in the 10-K, "The annual rates of increase in the per capita cost of covered health care benefits (the health care cost trend rates) used to determine accumulated post-retirement benefit obligations were based on the trends for medical and prescription drug claims for pre- and post-65 age groups due to the effects of Medicare."
The starting point for health care costs is lower (more aggressive) in 2015 (pink line) than it was in 2007 (blue line) while the decline in costs for future years to a steady state rate of cost increases equal to 5% is more gradual in '15 (more conservative). When compared to a couple of peers, CNHI and AGCO, the trends were similar. CNHI's '15 initial weighted average cost increase was about 6.8% decreasing to 5% and AGCO's '15 initial cost increase was about 7% decreasing to 5%. The health care inflationary assumptions for AGCO's Brazilian plan were significantly higher in line with the country's inflationary environment.
Additional pension and OPEB assumptions are in the chart below. More conservative accounting uses lower discount rates, higher rates of compensation increases, and lower expected long-term rates of return.
AGCO and CNHI use more conservative discount rates,
DE and AGCO use relatively more conservative compensation increase assumptions, and
CNHI uses the most conservative expected return on plan assets.
(Source: DE's 10-K reports)
I don't have too much concern regarding DE's pension or OPEB liabilities. They are viewed essentially as loans from employees; compensation earned in past and current periods and paid out post-retirement. I believe the low interest rate environment caused much of the increase to the present value post-retirement obligations and losses recognized in OCI. While these are very real impacts, it's not unique to DE and the gross obligations as a percentage of total assets have actually decreased over time. I'd value the post-retirement obligations as the 10/31/14 underfunded amount of $5.9B or about 15% of total debt.
The EV multiple adjustment refers to the post-retirement obligations being supported by non-operating plan assets of $11.4B as of 10/31/14. Normally a company's debt will be repaid by cash flows from operating assets with the residual cash flows paid out to equityholders. In this case, the plan assets are "maintained in a separate account in the company's pension plan trust" so these assets are protected from both bondholders and equityholders. The plan assets are simply meant to cover the defined benefit obligations.
Sales & Financing Receivables
The author's 2nd point addresses the concerns of lower sales and higher financing receivables. The company warns of lower sales in 2015 in the 2014 10-K and provides quite a bit of detail about the outlook.
Agriculture and turf equipment expected to decrease 20% in '15 due to "weaker conditions in the global farm economy. Lower commodity prices and falling farm incomes are putting pressure on demand for agricultural machinery, especially for larger models." DE's view of sales for the agriculture and turf industry is expected to perform worse relative to DE's company-specific forecast.
Weakness in the agriculture and turf business segment is expected to be partially offset by strength in the Construction & Forestry segment. From the 10-K, "sales of construction and forestry equipment are forecast to increase by about 5 percent for 2015. The gain reflects further economic recovery and higher housing starts in the U.S. as well as sales increases outside the U.S. and Canada." Global forestry is expected to be flat YOY.
(click to enlarge)
(Source: DE's 10-K reports)
As you can see, the decline in net sales discussed in the 10-K is reflected in 1Q15 (period ended 1/31/15) and 2Q15 (period ended 4/30/15). Typically, based on historical trends, net sales are lowest in Q1, peaks in Q2 and remains strong in Q3 and Q4, albeit lower than Q2. This is the normal seasonality baked into the business model. For example, "retail demand for turf and utility equipment is normally higher in the second and third fiscal quarters."
The lower sales in '15 - at least in my view - are not a function of accounting irregularities so much as it is management's acknowledgement of a weaker business environment, even after accounting for seasonality weakness in Q1. The financing receivables, as you can see from the black line in the chart, are beginning to decline in line with lower sales. If channel stuffing were an issue, I would expect net sales to increase instead of decrease.
Comprehensive Income / Net Income Volatility
Comprehensive income does not impact net income or EPS but it does capture items that impact shareholders' equity. The first chart below is from my model and since only historical periods are shown, the numbers are directly from the 10-K balance sheet with the accumulated OCI balances reflected. The second chart from the 10-K shows the components of accumulated OCI.
(Source: DE's 10-K reports)
(click to enlarge)
(Source: DE's 10-K reports)
Since the retirement benefits adjustment has already been discussed, and since unrealized gains/(losses) on derivatives and investments are immaterial, the focus here will be on the other OCI element, cumulative translation adjustment. DE is headquartered in Moline, IL but does business in well over 20 countries. About 35% of total revenues and more than 20% of EBIT is generated from business outside the U.S. Stepping back again for a moment, what these percentages tell us about lower profitability in international markets is consistent with the qualitative operating challenges described by management. Such challenges in foreign markets include reduced brand value, trade restrictions, and challenging access to raw materials.
Due to DE's international operations, converting foreign activity to U.S. dollars (( USD )) requires foreign exchange ((FX)) translations that flow through OCI on the income statement and accumulated OCI on the balance sheet (since the current method of translation is used vs. the temporal method). Without getting into the nitty gritty of FX accounting, what's important to know from an analytical point of view is how a strengthening or weakening of the USD will impact DE's equity. Under the current rate method of translating local to parent financials, a stronger domestic currency (the USD in this case) will decrease revenues, assets, liabilities, net income, and shareholders' equity (a negative translation adjustment will be made in OCI). When valuing DE, as you will see in the model, I do not forecast OCI simply because I'm not certain what discount rates, return on plan assets, or FX will do. It's important however to understand how the variables move and to be able to understand the impact of real-time movements in market variables to a company's value. A strong USD will hurt foreign-based revenues, net income, and equity when translated to USD.
Valuation (P/E ratios) for a Cyclical Business
The last question has to do with the cyclicality of a business. The author of the blog was referring to what Vitaliy Katsenelson explains here so well. Investors are told low P/E ratios are indicative of "value." Investors faced with a low P/E ratio have an opportunity to buy when the price is low, assuming "E" or earnings is held constant. That latter assumption though can also get investors into trouble. The danger is that P/E is low because E has peaked and the ratio will increase not due to future price increases but due to an E that is on its way to a trough in the business cycle. There is no price gain to that story, just earnings lost yet the P/E ratio expands…only for the wrong reason. As Vitaliy says, "stuff stocks are likely to bottom when they'll look expensive - their "E's" will be low or negative." So where is DE in the cycle?
As reflected in the chart with the last data point using modeled estimates with guidance provided by management and my adjustments, it appears profit margin is beginning a decline from the peak 2013 profit margin of 9.4%. Over the past ten fiscal years, the average profit margin has been 7.6%. For 2014 it was 8.8%. In my valuation model I have forecasted a profit margin of 7.6%, a YOY decline in net income of 27% and a YOY decline in EPS of 22% (EPS declines by less than net income as a result of DE's continued share repurchase program).
Here are a couple more points that are easier to make with a graphs.
(click to enlarge)
As you can see, the earnings (green line) are not flat. Thus, the P/E ratio is highly dependent upon the E component of the ratio. This seems obvious but when it's explained I generally notice the focus is on the P variable. If earnings are heading towards a trough, the P/E ratio (blue dotted line) will indeed increase as it has done in the past (see '09 as P/E increased but price dropped significantly).
The P/E ratio as of 7/13/15 is 13.4, which seems low when compared to the S&P of about 21.0x . What about for DE, is that a low multiple compared to its historical trends? When multiplying DE's average ROE over the last 10 years by the book value per share ((BVPS)) as of the last FY to calculate normalized EPS, the adjusted P/E is more like 12.0x. It appears the adjusted P/E indicates a somewhat expensive stock price today vs. the historical trend.
Valuation
To this point I've focused more on translating some of the accounting components of DE to something that can be understood from an economic or cash flow perspective as well as the sales/receivables relationship and relative valuation from a P/E perspective. So what's the PV of the future cash flows? Based on my assumptions and calculations as reflected in my model, I think DE is worth about $90-$110/share. Here are some points of consideration that significantly impact valuation.
Revenue growth: I believe DE is in for a rough '15 with revenue declines of about 16% based on insight from management's guidance as well as 1Q15 and 2Q15 numbers. I agree with management that longer term, the company is "well positioned to earn solid returns throughout the business cycle and realize substantial benefits from the world's growing need for food, shelter and infrastructure." As I researched this company, I remembered reading "A Farmland Investment Primer" by GMO in July of last year that is worth a look, specifically page 7 of the report that discusses forecasted global demand for food. Long-term revenue growth post-2015 is about 5% per year, compared with the past 10 years CAGR of about 6% annually. The assumed terminal growth rate is 3.0%.
Cost assumptions: COS and opex is largely in line with historical trends although R&D is projected to be about 0.5% higher in future years based on the increased focus on engine emissions improvements.
The B/S and CF/S accrual ratios have been relatively constant over time with the exception of seasonally-driven peaks (2Q ) and troughs (4Q) so there were few significant assumptions that drive sources/(uses) of cash other than profit from continued investment in the business. The increase in '15 forecasted CFO is due to sources of AR and inventory exceeded uses of AP due to lower overall sales. This source in '15 will become uses of cash in '16 forward as the company is forecasted to return growth mode.
The share repurchase program communicated was assumed with share buybacks continuing through 2016.
A somewhat sneaky component of value is the operating lease residual values and CFI received from the sale of equipment upon termination of the lease. I modeled $600mm of CFI for my projections, conservative compared to the last three years but consistent when using a 5-10 year time horizon.
I'd like the price to drop below $90/share before purchasing shares for my personal portfolio. The near-term risks from demand weakness in '15, an uncertain business environment in Europe, and El Nino present enough reasons for me to wait and see what happens. In other words, I believe the market will overreact to the short-term risks even though I think fair value is somewhere between $90-$110. Some may say all this work was a giant waste of time if not actionable but 1) that presupposes I have interesting hobbies and 2) I now know my entry point if/when the price dips below my lower bound so I don't view my research as a waste of time.
Finally, I mentioned Berkshire Hathaway purchased shares of DE. For what it's worth, I calculate Berkshire's average purchase price to be about $88.50. Copycatting the best has its perks (valuation calibration) and its downsides (price inflation from crowd-herding). Time to exercise patience.
See also The Williams Cos. ( WMB ) Alan S. Armstrong on Q2 2015 Results - Earnings Call Transcript on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stepping back to see the big picture, increased interest rates would reduce the benefit obligation but would likely hurt business overall since a significant portion of the large ticket items DE sells are financed. As I researched this company, I remembered reading "A Farmland Investment Primer" by GMO in July of last year that is worth a look, specifically page 7 of the report that discusses forecasted global demand for food. By Rob Wilson : Readers Note: Refer to leehillequity.com to download the Excel file containing data referenced below as well as the valuation model.
|
(click to enlarge) (Source: DE's 10-K reports) (click to enlarge) (Source: DE's 10-K reports) The discount rates used to calculate the present value of the post-retirement obligation balance "were based on hypothetical AA yield curves represented by a series of annualized individual discount rates. AGCO and CNHI use more conservative discount rates, DE and AGCO use relatively more conservative compensation increase assumptions, and CNHI uses the most conservative expected return on plan assets. In my valuation model I have forecasted a profit margin of 7.6%, a YOY decline in net income of 27% and a YOY decline in EPS of 22% (EPS declines by less than net income as a result of DE's continued share repurchase program).
|
(click to enlarge) (Source: DE's 10-K reports) (click to enlarge) (Source: DE's 10-K reports) The discount rates used to calculate the present value of the post-retirement obligation balance "were based on hypothetical AA yield curves represented by a series of annualized individual discount rates. (click to enlarge) (Source: DE's 10-K reports) The discount rate and the expected long-term rate of return on plan assets should be consistent, and that appears to be the case over the long run, save fluctuations in the discount rate in '08 due to the financial crisis. (click to enlarge) (Source: DE's 10-K reports) As noted in the 10-K, "The annual rates of increase in the per capita cost of covered health care benefits (the health care cost trend rates) used to determine accumulated post-retirement benefit obligations were based on the trends for medical and prescription drug claims for pre- and post-65 age groups due to the effects of Medicare."
|
In addition to an increase in the obligation amount from '08 to '09, DE's accumulated other comprehensive income ((OCI)) decreased by $2.7B, net of tax, largely as a result of the increased retirement obligation balance. The data and chart for the OPEB actual vs. expected return is included in the model. By Rob Wilson : Readers Note: Refer to leehillequity.com to download the Excel file containing data referenced below as well as the valuation model.
|
a5a2eefd-3d92-4dd3-8580-18284d177437
|
722777.0
|
2015-07-14 00:00:00 UTC
|
Caterpillar Upgraded to Strong Buy on Construction Growth - Analyst Blog
|
DE
|
https://www.nasdaq.com/articles/caterpillar-upgraded-to-strong-buy-on-construction-growth-analyst-blog-2015-07-14
|
nan
|
nan
|
On Jul 14, Zacks Investment Research upgraded Caterpillar Inc.CAT to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Committed to the goal of delivering incremental returns to shareholders, Caterpillar's board of directors approved a 10% increase in the company's quarterly dividend in Jun 2015, reflecting its balance sheet strength.
Caterpillar will now pay 77 cents per share to its shareholders every quarter, 7 cents more than the prior dividend of 70 cents per share. With the increased dividend, the company's dividend yield is at 3.80%, higher than Deere & Company's DE 2.50% and Joy Global, Inc.'s JOY 2.60%.
Caterpillar's first-quarter earnings per share increased 16% despite a muted mining environment, thanks to its persistent focus on operational improvement. The company expects earnings per share of around $5.00 per share in 2015 on the back of revenues of $50 billion.
Improvement in the construction sector will help to somewhat compensate the impact of a weak mining sector. The Architecture Billings Index, which is considered a leading indicator of U.S. non-residential construction, has remained above 50 in the recent months, signaling robust conditions ahead for the construction industry.
Caterpillar expects lower incentive compensation in 2015. Moreover, it has been implementing cost-reduction measures, including temporary shutdowns and cutback in flexible workforce. These efforts along with share repurchases will be accretive to the company's earnings.
Other Stocks to Consider
Another stock worth considering in the sector is AO Smith Corp. AOS with 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
DEERE & CO (DE): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis Report
JOY GLOBAL INC (JOY): 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.
|
Committed to the goal of delivering incremental returns to shareholders, Caterpillar's board of directors approved a 10% increase in the company's quarterly dividend in Jun 2015, reflecting its balance sheet strength. Caterpillar's first-quarter earnings per share increased 16% despite a muted mining environment, thanks to its persistent focus on operational improvement. On Jul 14, Zacks Investment Research upgraded Caterpillar Inc.CAT to a Zacks Rank #1 (Strong Buy).
|
On Jul 14, Zacks Investment Research upgraded Caterpillar Inc.CAT to a Zacks Rank #1 (Strong Buy). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Why the Upgrade?
|
On Jul 14, Zacks Investment Research upgraded Caterpillar Inc.CAT to a Zacks Rank #1 (Strong Buy). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Why the Upgrade?
|
On Jul 14, Zacks Investment Research upgraded Caterpillar Inc.CAT to a Zacks Rank #1 (Strong Buy). Why the Upgrade? Committed to the goal of delivering incremental returns to shareholders, Caterpillar's board of directors approved a 10% increase in the company's quarterly dividend in Jun 2015, reflecting its balance sheet strength.
|
5f83df14-bb77-467d-a514-3e0138512534
|
722778.0
|
2015-07-13 00:00:00 UTC
|
Why Deere is a Top Socially Responsible Dividend Stock (DE)
|
DE
|
https://www.nasdaq.com/articles/why-deere-top-socially-responsible-dividend-stock-de-2015-07-13
|
nan
|
nan
|
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 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 , Deere & Co. is a member of both the iShares MSCI USA ESG Select Social Index Fund ETF ( KLD ), making up 0.69% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), where DE makes up 0.41% 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 06/26/2015. 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.
|
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 ).
|
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 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 , Deere & Co. is a member of both the iShares MSCI USA ESG Select Social Index Fund ETF ( KLD ), making up 0.69% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), where DE makes up 0.41% 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.
|
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 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 , Deere & Co. is a member of both the iShares MSCI USA ESG Select Social Index Fund ETF ( KLD ), making up 0.69% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF ( DSI ), where DE makes up 0.41% 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.
|
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.
|
a86c230f-0f3e-4f21-bcc4-021171e17f2d
|
722779.0
|
2015-07-03 00:00:00 UTC
|
Deere to Grow on Improved Housing Despite Imminent Headwinds - Analyst Blog
|
DE
|
https://www.nasdaq.com/articles/deere-to-grow-on-improved-housing-despite-imminent-headwinds-analyst-blog-2015-07-03
|
nan
|
nan
|
On Jul 2, 2015, we issued an updated research report on Deere & CompanyDE . The manufacturer of agricultural, construction, forestry and consumer equipment is expected to benefit from improvement in the nonresidential construction sector, higher housing starts as well as innovative product introduction. However, low farm income, soft energy sector and tight credit condition remain headwinds.
In the second-quarter of fiscal 2015, Deere reported earnings of $2.03 per share, a 23% decline year over year owing to slowdown in global farm economy. Revenues decreased around 18% to $8.12 billion in the quarter, mainly due to a 20% drop in equipment operations sales.
However, Deere expects to be solidly profitable in 2015 driven by increased global demand for food, shelter and infrastructure. Global trends based on population growth and rising living standards remain intact and are largely unaffected by periodic swings in farming economy. Deere foresees global sales for Construction & Forestry equipment to advance about 2% in 2015, reflecting further economic recovery and higher housing starts in the U.S. Also, global forestry sales are expected to hold steady with 2014 levels.
Notably, Deere divested its crop insurance unit to Farmers Mutual Hail Insurance Company, as agreed upon in Dec 2014. The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together formed the business unit. Deere will continue to design, manufacture and offer technology, equipment and services in its precision agriculture offerings. Deere has been persistently shedding its non-core assets in order to become more profitable.
On the acquisition front, Deere purchased Bauer Built Manufacturing in order to expand its portfolio of agricultural equipment and enhance its ability to serve larger farms in key markets globally in 2014. The company also acquired Sao Paulo, Brazil-based Auteq Telematica, which is an onboard software and computer company that also specializes in hardware support. The acquisition will provide Deere additional specialization in the sugarcane market.
However, Deere remains concerned about equipment operation sales, which is expected to decrease around 19% year over year in fiscal 2015. USDA's (U.S. Department of Agriculture) forecast for U.S. farm income in 2015 is pegged at $73.6 billion, the lowest since 2009 and a 32% drop from 2014. This is mainly because of falling crop prices, which will affect farm income.
Moreover, weakening conditions in the energy sector; political, economic and social uncertainties; strong competition as well as aggressive pricing and manufacturing delays could adversely affect Deere's business.
Deere currently carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Better-ranked stocks in the sector include Kubota Corporation KUBTY , AGCO Corporation AGCO and Lindsay Corporation LNN . While Kubota Corporation sports a Zacks Rank #1 (Strong Buy), AGCO and Lindsay Corporation hold 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
DEERE & CO (DE): Free Stock Analysis Report
AGCO CORP (AGCO): Free Stock Analysis Report
LINDSAY CORP (LNN): Free Stock Analysis Report
KUBOTA CORP ADR (KUBTY): 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.
|
On the acquisition front, Deere purchased Bauer Built Manufacturing in order to expand its portfolio of agricultural equipment and enhance its ability to serve larger farms in key markets globally in 2014. Moreover, weakening conditions in the energy sector; political, economic and social uncertainties; strong competition as well as aggressive pricing and manufacturing delays could adversely affect Deere's business. On Jul 2, 2015, we issued an updated research report on Deere & CompanyDE .
|
Stocks that Warrant a Look Better-ranked stocks in the sector include Kubota Corporation KUBTY , AGCO Corporation AGCO and Lindsay Corporation LNN . 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 KUBOTA CORP ADR (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here. On Jul 2, 2015, we issued an updated research report on Deere & CompanyDE .
|
Deere foresees global sales for Construction & Forestry equipment to advance about 2% in 2015, reflecting further economic recovery and higher housing starts in the U.S. Also, global forestry sales are expected to hold steady with 2014 levels. The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together formed the business unit. 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 KUBOTA CORP ADR (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here.
|
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 KUBOTA CORP ADR (KUBTY): Free Stock Analysis Report To read this article on Zacks.com click here. On Jul 2, 2015, we issued an updated research report on Deere & CompanyDE . The manufacturer of agricultural, construction, forestry and consumer equipment is expected to benefit from improvement in the nonresidential construction sector, higher housing starts as well as innovative product introduction.
|
d552d346-1c94-4ae4-bb92-aeba92466006
|
722780.0
|
2015-07-01 00:00:00 UTC
|
Zacks Investment Ideas feature highlights: LyondellBasell Industries, Gap, Harley-Davidson and Deere - Press Releases
|
DE
|
https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-lyondellbasell-industries-gap-harley-davidson
|
nan
|
nan
|
For Immediate Release
Chicago, IL- July 01, 2015 - Today, Zacks Investment Ideas feature highlights Features: LyondellBasell Industries ( LYB ), Gap Inc. ( GPS ), Harley-Davidson ( HOG ) and Deere & Co ( DE ).
4 Shareholder-Friendly Cash Machines
Corporate America is flush with cash. Excluding financials, cash and short-term investments in the S&P 500 reached a record $1.43 trillion.
Businesses have several options when it comes to deploying their excess cash. They can make acquisitions, fund organic growth, pay down debt, or return it to shareholders through dividends or stock buybacks.
Of course, a company can just let that money sit in the bank and grow its cash hoard (which seems to be a popular choice today). But with interest rates still near record lows, they're generating very low returns for their shareholders.
If you own a company for the long-run, make sure you know how it is managing its cash.
Investing for the Future
Ideally, a company should use its capital to maximize long-term value for their shareholders. In his Annual Letter to Shareholders in 1992, legendary investor Warren Buffett stated:
"Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return."
Clearly some managers understand this concept better than others. Many corporate executives are more concerned about empire-building than producing high returns on capital and often make reckless decisions with shareholders' money that destroys value over time.
Assuming a company is investing prudently for the future and still has cash left over, a logical next step would be to return that cash flow to the owners of the business (i.e., the shareholders).
Buybacks & Dividends
It's not uncommon for companies to distribute more and more cash to shareholders as they mature. Bigger companies have less growth opportunities and compete in crowded markets, so they plow back less of their earnings into the company and more into shareholders' wallets. And dividends, along with stock buybacks, are the quickest and surest way to return value to shareholders.
When a company actually buys back its shares, it has a direct benefit in that it reduces the number of shares outstanding. This means that earnings are divided among fewer shares. In other words, your piece of the pie just got bigger.
Buyer Beware
If a company has the excess funds and their stock is undervalued, buybacks can add tremendous value over time. But make no mistake: stock buybacks don't always add value. In fact, history shows that companies are often bad at timing their repurchases, buying when their share price is high.
The cash allocated to their overvalued stock would have been better spent investing for growth, paying a higher dividend, or just leaving it in the bank.
So make sure the underlying business is sound and the stock is reasonably priced before investing in a company that's buying back its own stock. Because all the buybacks in the world won't save a company headed off a cliff.
4 Shareholder-Friendly Companies
With that in mind, here are 4 reasonably-priced, shareholder-friendly companies generating strong free cash flow, raising their dividends and buying back stock:
LyondellBasell Industries ( LYB )
Free Cash Flow (Trailing Twelve Months): $5,253 million (10.9% of market cap)
Share Buybacks (Trailing Twelve Months): $5,946 million (113% of FCF)
Dividends Paid (Trailing Twelve Months): $1,410 million (27% of FCF)
3-year Compound Annual Growth Rate (CAGR) in Dividends: 25%
Gap Inc. ( GPS )
Free Cash Flow (TTM): $1,125 million (7.1% of market cap)
Share Buybacks (TTM): $1,141 million (101% of FCF)
Dividends Paid (TTM): $382 million (34% of FCF)
5-year CAGR in Dividends: 18%
Harley-Davidson ( HOG )
Free Cash Flow (TTM): $1,106 million (9.5% of market cap)
Share Buybacks (TTM): $682 million (62% of FCF)
Dividends Paid (TTM): $243 million (22% of FCF)
5-year CAGR in Dividends: 25%
Deere & Co ( DE )
Free Cash Flow (TTM): $3,257 million (6.8% of market cap)
Share Buybacks (TTM): $2,685 million (82% of FCF)
Dividends Paid (TTM): $820 million (25% of FCF)
5-year CAGR in Dividends: 15%
The Bottom Line
Companies have several options when it comes to deploying their excess cash. These 4 cash machines are choosing to return value to shareholders through generous dividend increases and big stock buybacks.
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
LYONDELLBASEL-A (LYB): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
HARLEY-DAVIDSON (HOG): Free Stock Analysis Report
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.
|
In his Annual Letter to Shareholders in 1992, legendary investor Warren Buffett stated: "Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return." Many corporate executives are more concerned about empire-building than producing high returns on capital and often make reckless decisions with shareholders' money that destroys value over time. The cash allocated to their overvalued stock would have been better spent investing for growth, paying a higher dividend, or just leaving it in the bank.
|
For Immediate Release Chicago, IL- July 01, 2015 - Today, Zacks Investment Ideas feature highlights Features: LyondellBasell Industries ( LYB ), Gap Inc. ( GPS ), Harley-Davidson ( HOG ) and Deere & Co ( DE ). 4 Shareholder-Friendly Companies With that in mind, here are 4 reasonably-priced, shareholder-friendly companies generating strong free cash flow, raising their dividends and buying back stock: LyondellBasell Industries ( LYB ) Free Cash Flow (Trailing Twelve Months): $5,253 million (10.9% of market cap) Share Buybacks (Trailing Twelve Months): $5,946 million (113% of FCF) Dividends Paid (Trailing Twelve Months): $1,410 million (27% of FCF) 3-year Compound Annual Growth Rate (CAGR) in Dividends: 25% Gap Inc. ( GPS ) Free Cash Flow (TTM): $1,125 million (7.1% of market cap) Share Buybacks (TTM): $1,141 million (101% of FCF) Dividends Paid (TTM): $382 million (34% of FCF) 5-year CAGR in Dividends: 18% Harley-Davidson ( HOG ) Free Cash Flow (TTM): $1,106 million (9.5% of market cap) Share Buybacks (TTM): $682 million (62% of FCF) Dividends Paid (TTM): $243 million (22% of FCF) 5-year CAGR in Dividends: 25% Deere & Co ( DE ) Free Cash Flow (TTM): $3,257 million (6.8% of market cap) Share Buybacks (TTM): $2,685 million (82% of FCF) Dividends Paid (TTM): $820 million (25% of FCF) 5-year CAGR in Dividends: 15% The Bottom Line Companies have several options when it comes to deploying their excess cash. Click to get this free report LYONDELLBASEL-A (LYB): Free Stock Analysis Report GAP INC (GPS): Free Stock Analysis Report HARLEY-DAVIDSON (HOG): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Assuming a company is investing prudently for the future and still has cash left over, a logical next step would be to return that cash flow to the owners of the business (i.e., the shareholders). 4 Shareholder-Friendly Companies With that in mind, here are 4 reasonably-priced, shareholder-friendly companies generating strong free cash flow, raising their dividends and buying back stock: LyondellBasell Industries ( LYB ) Free Cash Flow (Trailing Twelve Months): $5,253 million (10.9% of market cap) Share Buybacks (Trailing Twelve Months): $5,946 million (113% of FCF) Dividends Paid (Trailing Twelve Months): $1,410 million (27% of FCF) 3-year Compound Annual Growth Rate (CAGR) in Dividends: 25% Gap Inc. ( GPS ) Free Cash Flow (TTM): $1,125 million (7.1% of market cap) Share Buybacks (TTM): $1,141 million (101% of FCF) Dividends Paid (TTM): $382 million (34% of FCF) 5-year CAGR in Dividends: 18% Harley-Davidson ( HOG ) Free Cash Flow (TTM): $1,106 million (9.5% of market cap) Share Buybacks (TTM): $682 million (62% of FCF) Dividends Paid (TTM): $243 million (22% of FCF) 5-year CAGR in Dividends: 25% Deere & Co ( DE ) Free Cash Flow (TTM): $3,257 million (6.8% of market cap) Share Buybacks (TTM): $2,685 million (82% of FCF) Dividends Paid (TTM): $820 million (25% of FCF) 5-year CAGR in Dividends: 15% The Bottom Line Companies have several options when it comes to deploying their excess cash. Click to get this free report LYONDELLBASEL-A (LYB): Free Stock Analysis Report GAP INC (GPS): Free Stock Analysis Report HARLEY-DAVIDSON (HOG): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
They can make acquisitions, fund organic growth, pay down debt, or return it to shareholders through dividends or stock buybacks. So make sure the underlying business is sound and the stock is reasonably priced before investing in a company that's buying back its own stock. For Immediate Release Chicago, IL- July 01, 2015 - Today, Zacks Investment Ideas feature highlights Features: LyondellBasell Industries ( LYB ), Gap Inc. ( GPS ), Harley-Davidson ( HOG ) and Deere & Co ( DE ).
|
9be60f64-d049-475d-9bf7-002e33b0dcfb
|
722781.0
|
2015-06-30 00:00:00 UTC
|
4 Shareholder-Friendly Cash Machines - Investment Ideas
|
DE
|
https://www.nasdaq.com/articles/4-shareholder-friendly-cash-machines-investment-ideas-2015-06-30
|
nan
|
nan
|
Corporate America is flush with cash. Excluding financials, cash and short-term investments in the S&P 500 reached a record $1.43 trillion.
Businesses have several options when it comes to deploying their excess cash. They can make acquisitions, fund organic growth, pay down debt, or return it to shareholders through dividends or stock buybacks.
Of course, a company can just let that money sit in the bank and grow its cash hoard (which seems to be a popular choice today). But with interest rates still near record lows, they're generating very low returns for their shareholders.
If you own a company for the long-run, make sure you know how it is managing its cash.
Investing for the Future
Ideally, a company should use its capital to maximize long-term value for their shareholders. In his Annual Letter to Shareholders in 1992, legendary investor Warren Buffett stated:
"Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return."
Clearly some managers understand this concept better than others. Many corporate executives are more concerned about empire-building than producing high returns on capital and often make reckless decisions with shareholders' money that destroys value over time.
Assuming a company is investing prudently for the future and still has cash left over, a logical next step would be to return that cash flow to the owners of the business (i.e., the shareholders).
Buybacks & Dividends
It's not uncommon for companies to distribute more and more cash to shareholders as they mature. Bigger companies have less growth opportunities and compete in crowded markets, so they plow back less of their earnings into the company and more into shareholders' wallets. And dividends, along with stock buybacks, are the quickest and surest way to return value to shareholders.
When a company actually buys back its shares, it has a direct benefit in that it reduces the number of shares outstanding. This means that earnings are divided among fewer shares. In other words, your piece of the pie just got bigger.
Buyer Beware
If a company has the excess funds and their stock is undervalued, buybacks can add tremendous value over time. But make no mistake: stock buybacks don't always add value. In fact, history shows that companies are often bad at timing their repurchases, buying when their share price is high.
The cash allocated to their overvalued stock would have been better spent investing for growth, paying a higher dividend, or just leaving it in the bank.
So make sure the underlying business is sound and the stock is reasonably priced before investing in a company that's buying back its own stock. Because all the buybacks in the world won't save a company headed off a cliff.
4 Shareholder-Friendly Companies
With that in mind, here are 4 reasonably-priced, shareholder-friendly companies generating strong free cash flow, raising their dividends and buying back stock:
LyondellBasell Industries ( LYB )
Free Cash Flow (Trailing Twelve Months): $5,253 million (10.9% of market cap)
Share Buybacks (Trailing Twelve Months): $5,946 million (113% of FCF)
Dividends Paid (Trailing Twelve Months): $1,410 million (27% of FCF)
3-year Compound Annual Growth Rate (CAGR) in Dividends: 25%
Gap Inc. ( GPS )
Free Cash Flow (TTM): $1,125 million (7.1% of market cap)
Share Buybacks (TTM): $1,141 million (101% of FCF)
Dividends Paid (TTM): $382 million (34% of FCF)
5-year CAGR in Dividends: 18%
Harley-Davidson ( HOG )
Free Cash Flow (TTM): $1,106 million (9.5% of market cap)
Share Buybacks (TTM): $682 million (62% of FCF)
Dividends Paid (TTM): $243 million (22% of FCF)
5-year CAGR in Dividends: 25%
Deere & Co ( DE )
Free Cash Flow (TTM): $3,257 million (6.8% of market cap)
Share Buybacks (TTM): $2,685 million (82% of FCF)
Dividends Paid (TTM): $820 million (25% of FCF)
5-year CAGR in Dividends: 15%
The Bottom Line
Companies have several options when it comes to deploying their excess cash. These 4 cash machines are choosing to return value to shareholders through generous dividend increases and big stock buybacks.
Todd Bunton, CFA is a Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor and Surprise Trader services.
Want More of Our Best Recommendations?
Zacks Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a program called Zacks Confidential .
Learn More>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
LYONDELLBASEL-A (LYB): Free Stock Analysis Report
HARLEY-DAVIDSON (HOG): Free Stock Analysis Report
GAP INC (GPS): 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.
|
In his Annual Letter to Shareholders in 1992, legendary investor Warren Buffett stated: "Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return." Many corporate executives are more concerned about empire-building than producing high returns on capital and often make reckless decisions with shareholders' money that destroys value over time. Todd Bunton, CFA is a Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor and Surprise Trader services.
|
4 Shareholder-Friendly Companies With that in mind, here are 4 reasonably-priced, shareholder-friendly companies generating strong free cash flow, raising their dividends and buying back stock: LyondellBasell Industries ( LYB ) Free Cash Flow (Trailing Twelve Months): $5,253 million (10.9% of market cap) Share Buybacks (Trailing Twelve Months): $5,946 million (113% of FCF) Dividends Paid (Trailing Twelve Months): $1,410 million (27% of FCF) 3-year Compound Annual Growth Rate (CAGR) in Dividends: 25% Gap Inc. ( GPS ) Free Cash Flow (TTM): $1,125 million (7.1% of market cap) Share Buybacks (TTM): $1,141 million (101% of FCF) Dividends Paid (TTM): $382 million (34% of FCF) 5-year CAGR in Dividends: 18% Harley-Davidson ( HOG ) Free Cash Flow (TTM): $1,106 million (9.5% of market cap) Share Buybacks (TTM): $682 million (62% of FCF) Dividends Paid (TTM): $243 million (22% of FCF) 5-year CAGR in Dividends: 25% Deere & Co ( DE ) Free Cash Flow (TTM): $3,257 million (6.8% of market cap) Share Buybacks (TTM): $2,685 million (82% of FCF) Dividends Paid (TTM): $820 million (25% of FCF) 5-year CAGR in Dividends: 15% The Bottom Line Companies have several options when it comes to deploying their excess cash. Click to get this free report LYONDELLBASEL-A (LYB): Free Stock Analysis Report HARLEY-DAVIDSON (HOG): Free Stock Analysis Report GAP INC (GPS): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Businesses have several options when it comes to deploying their excess cash.
|
Assuming a company is investing prudently for the future and still has cash left over, a logical next step would be to return that cash flow to the owners of the business (i.e., the shareholders). 4 Shareholder-Friendly Companies With that in mind, here are 4 reasonably-priced, shareholder-friendly companies generating strong free cash flow, raising their dividends and buying back stock: LyondellBasell Industries ( LYB ) Free Cash Flow (Trailing Twelve Months): $5,253 million (10.9% of market cap) Share Buybacks (Trailing Twelve Months): $5,946 million (113% of FCF) Dividends Paid (Trailing Twelve Months): $1,410 million (27% of FCF) 3-year Compound Annual Growth Rate (CAGR) in Dividends: 25% Gap Inc. ( GPS ) Free Cash Flow (TTM): $1,125 million (7.1% of market cap) Share Buybacks (TTM): $1,141 million (101% of FCF) Dividends Paid (TTM): $382 million (34% of FCF) 5-year CAGR in Dividends: 18% Harley-Davidson ( HOG ) Free Cash Flow (TTM): $1,106 million (9.5% of market cap) Share Buybacks (TTM): $682 million (62% of FCF) Dividends Paid (TTM): $243 million (22% of FCF) 5-year CAGR in Dividends: 25% Deere & Co ( DE ) Free Cash Flow (TTM): $3,257 million (6.8% of market cap) Share Buybacks (TTM): $2,685 million (82% of FCF) Dividends Paid (TTM): $820 million (25% of FCF) 5-year CAGR in Dividends: 15% The Bottom Line Companies have several options when it comes to deploying their excess cash. Click to get this free report LYONDELLBASEL-A (LYB): Free Stock Analysis Report HARLEY-DAVIDSON (HOG): Free Stock Analysis Report GAP INC (GPS): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
They can make acquisitions, fund organic growth, pay down debt, or return it to shareholders through dividends or stock buybacks. Many corporate executives are more concerned about empire-building than producing high returns on capital and often make reckless decisions with shareholders' money that destroys value over time. So make sure the underlying business is sound and the stock is reasonably priced before investing in a company that's buying back its own stock.
|
082d47f4-5fea-46d8-9c0f-ef85ce1b9ec7
|
722782.0
|
2015-06-29 00:00:00 UTC
|
Is Deere & Company (DE) Stock a Solid Choice Right Now? - Tale of the Tape
|
DE
|
https://www.nasdaq.com/articles/is-deere-company-de-stock-a-solid-choice-right-now-tale-of-the-tape-2015-06-29
|
nan
|
nan
|
One stock that might be an intriguing choice for investors right now is Deere & Company ( DE ). This is because this security in the machinery space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the machinery space as it currently has a Zacks Industry Rank of 44 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Deere & Company is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
In fact, over the past month, current quarter estimates have risen from $1.41 per share to $1.43 per share, while current year estimates have risen from $5.60 per share to $5.65 per share. The company currently holds a Zacks Rank #3 (Hold), which is also a favorable signal.
So, if you are looking for a decent pick in a strong industry, consider Deere & Company. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
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.
|
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. One stock that might be an intriguing choice for investors right now is Deere & Company ( DE ). Meanwhile, Deere & Company is actually looking pretty good on its own too.
|
One stock that might be an intriguing choice for investors right now is Deere & Company ( DE ). This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. Meanwhile, Deere & Company is actually looking pretty good on its own too.
|
One stock that might be an intriguing choice for investors right now is Deere & Company ( DE ). This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. Meanwhile, Deere & Company is actually looking pretty good on its own too.
|
One stock that might be an intriguing choice for investors right now is Deere & Company ( DE ). This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. Meanwhile, Deere & Company is actually looking pretty good on its own too.
|
aa2ed560-c367-4310-a10b-706979fbfdfd
|
722783.0
|
2015-06-25 00:00:00 UTC
|
Deere & Company (DE) Ex-Dividend Date Scheduled for June 26, 2015
|
DE
|
https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-june-26-2015-2015-06-25
|
nan
|
nan
|
Deere & Company ( DE ) will begin trading ex-dividend on June 26, 2015. A cash dividend payment of $0.6 per share is scheduled to be paid on August 03, 2015. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 5th quarter that DE has paid the same dividend. At the current stock price of $94, the dividend yield is 2.55%.
The previous trading day's last sale of DE was $94, representing a -0.93% decrease from the 52 week high of $94.88 and a 19.17% increase over the 52 week low of $78.88.
DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). DE's current earnings per share, an indicator of a company's profitability, is $7.31. Zacks Investment Research reports DE's forecasted earnings growth in 2015 as -34.58%, compared to an industry average of 3.7%.
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:
Market Vectors Agribusiness ETF ( MOO )
iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
The top-performing ETF of this group is MOO with an increase of 4.05% over the last 100 days. It also has the highest percent weighting of DE at 6.95%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
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 Thermo Fisher Scientific Inc ( TMO ). Zacks Investment Research reports DE's forecasted earnings growth in 2015 as -34.58%, compared to an industry average of 3.7%.
|
DE's current earnings per share, an indicator of a company's profitability, is $7.31. 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 26, 2015.
|
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: Market Vectors Agribusiness ETF ( MOO ) iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
|
A cash dividend payment of $0.6 per share is scheduled to be paid on August 03, 2015. DE's current earnings per share, an indicator of a company's profitability, is $7.31. The following ETF(s) have DE as a top-10 holding: Market Vectors Agribusiness ETF ( MOO ) iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ).
|
afecb4a9-da2d-4667-bf0c-4fcb28178f1a
|
722784.0
|
2015-06-24 00:00:00 UTC
|
Will Lindsay (LNN) Miss Q3 Earnings on Low Farm Income? - Analyst Blog
|
DE
|
https://www.nasdaq.com/articles/will-lindsay-lnn-miss-q3-earnings-on-low-farm-income-analyst-blog-2015-06-24
|
nan
|
nan
|
Leading designer and manufacturer of self-propelled center pivot and lateral move irrigation systems, Lindsay CorporationLNN is expected to report third-quarter fiscal 2015 results on Jun 25.
In the last quarter, Lindsay had missed the Zacks Consensus Estimate by a wide margin, a negative surprise of 35.34%. The company has failed to match the Zacks Consensus Estimate in three of the last four quarters, resulting in a negative average surprise of 1.73% for the trailing four quarters.
Let's see how things have shaped up for this announcement.
Factors to Consider This Quarter
Lindsay's earnings continue to bear the brunt of weak U.S. demand which is being affected by lower commodity prices and a slump in farm incomes. The pricing environment in both the U.S. and international markets is expected to remain competitive in the near-term.
Lindsay's backlog at the end of the prior quarter was $74.3 million, down from $89.3 million at the end of the year-ago quarter. The prior quarter includes $7.9 million of backlog from Elecsys Corporation. Year-over-year irrigation backlog levels, excluding Elecsys, have decreased, reflecting the change in conditions of the agricultural market. Infrastructure backlog has also decreased. Lindsay's backlog represents some long-term irrigation and infrastructure projects as well as short lead time orders.
Lindsay remains concerned about the U.S. irrigation market in the rest of 2015, which will be affected by lower commodity prices, uncertainty surrounding renewal of tax incentives and lower farm incomes. Geopolitical uncertainty and lower global crop prices will also continue to weigh on international irrigation revenues. As a result, Lindsay estimates lower irrigation segment revenues in fiscal 2015. Further, Lindsay anticipates a reduction in export demand while ethanol production is likely to remain under pressure.
Earnings Whispers
Our proven model does not conclusively show that Lindsay 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. That is not the case here as you will see below.
Zacks ESP: The Most Accurate estimate and the Zacks Consensus Estimate currently stand at 76 cents, leading to an Earnings ESP of 0.00%.
Zacks Rank #4: Lindsay's Zacks Rank #4 (Sell), when combined with a 0.00% Earnings 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.
Stocks to Consider
Here are some other companies that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Deere & Company DE has an Earnings ESP of +1.42% and a Zacks Rank #3 (Hold).
MRC Global Inc. MRC has an Earnings ESP of 11.76% and a Zacks Rank #3.
Zebra Technologies Corporation ZBRA has an Earnings ESP of +2.56% 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
LINDSAY CORP (LNN): Free Stock Analysis Report
MRC GLOBAL INC (MRC): Free Stock Analysis Report
ZEBRA TECH CL A (ZBRA): 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.
|
Leading designer and manufacturer of self-propelled center pivot and lateral move irrigation systems, Lindsay CorporationLNN is expected to report third-quarter fiscal 2015 results on Jun 25. Factors to Consider This Quarter Lindsay's earnings continue to bear the brunt of weak U.S. demand which is being affected by lower commodity prices and a slump in farm incomes. Year-over-year irrigation backlog levels, excluding Elecsys, have decreased, reflecting the change in conditions of the agricultural market.
|
Stocks to Consider Here are some other companies that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Company DE has an Earnings ESP of +1.42% and a Zacks Rank #3 (Hold). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report MRC GLOBAL INC (MRC): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Leading designer and manufacturer of self-propelled center pivot and lateral move irrigation systems, Lindsay CorporationLNN is expected to report third-quarter fiscal 2015 results on Jun 25.
|
Stocks to Consider Here are some other companies that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Company DE has an Earnings ESP of +1.42% and a Zacks Rank #3 (Hold). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report MRC GLOBAL INC (MRC): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Leading designer and manufacturer of self-propelled center pivot and lateral move irrigation systems, Lindsay CorporationLNN is expected to report third-quarter fiscal 2015 results on Jun 25.
|
Stocks to Consider Here are some other companies that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Company DE has an Earnings ESP of +1.42% and a Zacks Rank #3 (Hold). Leading designer and manufacturer of self-propelled center pivot and lateral move irrigation systems, Lindsay CorporationLNN is expected to report third-quarter fiscal 2015 results on Jun 25. In the last quarter, Lindsay had missed the Zacks Consensus Estimate by a wide margin, a negative surprise of 35.34%.
|
20a3faba-9bff-4874-bde8-e608186b4e9c
|
722785.0
|
2015-06-12 00:00:00 UTC
|
2 Stocks to Watch in Agricultural Machinery (Hint: Buffett is Buying One of These)
|
DE
|
https://www.nasdaq.com/articles/2-stocks-watch-agricultural-machinery-hint-buffett-buying-one-these-2015-06-12
|
nan
|
nan
|
The agricultural sector faces a daunting challenge today: To produce enough food to feed a global population that is projected to grow to 9.5 billion by 2050 even as the amount of arable land shrinks. Estimates suggest agricultural output will have to double by that year to meet the incresed demand for food, fiber, and feed.
DE Revenue (Annual) data by YCharts .
Last year was challenging, with low crop prices hitting farm income and hence demand for large farm equipment that also happens to be Deere's largest revenue-generating segment. Yet, Deere reported its second-best profit figure in history, roughly $3.16 billion. Management's vision through 2018 targets $50 billion in net sales assuming midcycle growth, which would translate into compound average growth of 9% from 2010 to 2018. There aren't too many companies around that offer estimates extending beyond a year or two.
Deere's financials present an equally solid picture. The company earned $1.4 billion in free cash flow over the past 12 months, and it currently sports an operating margin of roughly 14% and a return on equity of 27%. Last year, Deere increased its quarterly dividend by an impressive 18%, marking the 12th such increase over the past decade. Over this period, the company has paid out more than half of its operating cash flow to shareholders in the form of dividends and share repurchases.
Such solid fundamentals are, of course, one of the major factors why Warren Buffett's Berkshire Hathaway upped its stake in Deere during the fourth quarter, fueling investors' optimism. Having underperformed the broader market over the past year, Deere actually looks compelling. As fellow Fool Bob Ciura pointed out , the stock is trading near five-year lows in terms of P/E and yielding dividends at a near five-year high. How many more reasons do you need to give this fantastic stock a look?
2. AGCOCorp.
AGCO might not be as big as Deere, but it has a great competitive advantage over the giant: AGCO derives 75% of its sales from international markets today, with tractors accounting for a major chunk of sales.
Naturally, AGCO is well positioned to capitalize on the growth in demand for mechanized tractors and other equipment from developing markets. In fact, greater exposure to international markets is one of the reasons the company has increased its revenue and net income at a higher clip than Deere over the past five years. Take a look.
AGCO Revenue (Annual) data by YCharts .
The trend should continue, as AGCO is expanding its dealership network and localizing production of high-horse-power machines in key markets including Brazil, Russia, and Africa. The company plans to invest 3.5% of its sales in research and development this year, similar to last year, despite a challenging business environment. Meanwhile, AGCO aims to increase its free cash flow to $300 million in 2015 from $137 million last year, backed by better inventory management and lower costs. In response to weak crop markets, AGCO downsized its workforce by 9% last year.
Investors can expect part of the incremental cash flow to go into their pockets: AGCO raised its quarterly dividend by 9% in the first quarter after boosting it 10% early last year. Remember, the company only started paying out a dividend in 2013. AGCO also announced a fresh $500 million stock buyback program in the fourth quarter after wrapping up a program worth the same amount last year.
With analysts projecting AGCO's earnings to climb by 9.5% over the next five years, the stock looks like a good bargain.
Foolish takeaway
Farm equipment is a cyclical business that is subject to the vagaries of crop prices and farm income. As such, Deere and AGCO earnings could be volatile in the near term. But in the longer run, both stocks look like potential winners.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act quickly, you could be among the savvy investors who enjoy the profits from this stunning change. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article 2 Stocks to Watch in Agricultural Machinery (Hint: Buffett is Buying One of These) originally appeared on Fool.com.
Neha Chamaria has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. 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 - 2015 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.
|
Such solid fundamentals are, of course, one of the major factors why Warren Buffett's Berkshire Hathaway upped its stake in Deere during the fourth quarter, fueling investors' optimism. The trend should continue, as AGCO is expanding its dealership network and localizing production of high-horse-power machines in key markets including Brazil, Russia, and Africa. Estimates suggest agricultural output will have to double by that year to meet the incresed demand for food, fiber, and feed.
|
Last year was challenging, with low crop prices hitting farm income and hence demand for large farm equipment that also happens to be Deere's largest revenue-generating segment. Estimates suggest agricultural output will have to double by that year to meet the incresed demand for food, fiber, and feed. DE Revenue (Annual) data by YCharts .
|
In fact, greater exposure to international markets is one of the reasons the company has increased its revenue and net income at a higher clip than Deere over the past five years. Investors can expect part of the incremental cash flow to go into their pockets: AGCO raised its quarterly dividend by 9% in the first quarter after boosting it 10% early last year. Estimates suggest agricultural output will have to double by that year to meet the incresed demand for food, fiber, and feed.
|
Naturally, AGCO is well positioned to capitalize on the growth in demand for mechanized tractors and other equipment from developing markets. In fact, greater exposure to international markets is one of the reasons the company has increased its revenue and net income at a higher clip than Deere over the past five years. As such, Deere and AGCO earnings could be volatile in the near term.
|
0abed202-5d04-4a43-9d48-1650c504763e
|
722786.0
|
2015-06-11 00:00:00 UTC
|
Caterpillar Raises Quarterly Dividend by 10%, Shares Up - Analyst Blog
|
DE
|
https://www.nasdaq.com/articles/caterpillar-raises-quarterly-dividend-by-10-shares-up-analyst-blog-2015-06-11
|
nan
|
nan
|
Caterpillar Inc.CAT announced that its board of directors of has approved a 10% increase in its quarterly dividend to 77 cents per share. The move reflects the company's commitment toward delivering incremental returns to shareholders as well as balance sheet strength. Caterpillar's share price went up 2% following the news.
Caterpillar's current payout is 7 cents more than the prior dividend of 70 cents per share. The increased dividend will be paid on Aug 20, 2015, to shareholders of record as of Jul 20, 2015. The current raise comes exactly after a year of the last dividend increase, announced in Jun 2014, when it was hiked by 10% from 60 cents to 70 cents.
With the increased dividend, Caterpillar's dividend yield will go up from the current 3.30% to 3.48%, higher than Deere & Company's DE 2.60% and Joy Global, Inc.'s JOY 2.10%. Caterpillar's 5 year average dividend yield of 2.32%, 5 Year Dividend Growth Rate of 9.95% and Payout Ratio of 42.77% are above the industry average of 1.78%, 16.72% and 20.88%, respectively.
Caterpillar's first-quarter earnings per share increased 16% despite a muted mining environment, thanks to its incessant focus on operational improvement. Caterpillar repurchased shares worth $400 million in the first quarter under its $10 billion repurchase authorization that was approved by its board in 2014. It ended the quarter with cash and short-term investments of $7.56 billion, while its debt-to-capital ratio at Machinery, Energy & Transportation (ME&T) was 37.1%, within its targeted range of 30% to 45%. The company intends carry on repurchasing shares during the year, which will be accretive to earnings.
Caterpillar increased its earnings per share guidance for 2015 to $5.00 per share from the previous projection of $4.75 per share. However, the company has maintained its 2015 revenue guidance at $50 billion, a 4% decline from 2014, primarily due to lower oil prices . Low demand in the mining sector, weakness in the construction industries of key developing countries like China and Brazil as well as a stronger dollar will keep revenues in check. Moreover, given the continued weakness in agriculture, sales of industrial engines will be down. The rail business is also projected to be down in 2015 after a great 2014.
Improvement in the construction sector will help to somewhat compensate the impact of a weak mining sector. The Architecture Billings Index, which is considered a leading indicator of U.S. non-residential construction, has remained above 50 in the recent months, signaling robust conditions ahead for the construction industry.
Caterpillar expects lower incentive compensation in 2015. The company's efforts to reduce costs, continued deployment of lean manufacturing initiatives and improvement in the Construction segment will also help mitigate the effect of lower mining-related sales on its profits.
Caterpillar currently carries a Zacks Rank #3 (Hold). A better-ranked stock in this sector is Astec Industries, Inc. ASTE with 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
DEERE & CO (DE): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
ASTEC INDS INC (ASTE): Free Stock Analysis Report
JOY GLOBAL INC (JOY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
It ended the quarter with cash and short-term investments of $7.56 billion, while its debt-to-capital ratio at Machinery, Energy & Transportation (ME&T) was 37.1%, within its targeted range of 30% to 45%. Low demand in the mining sector, weakness in the construction industries of key developing countries like China and Brazil as well as a stronger dollar will keep revenues in check. The company's efforts to reduce costs, continued deployment of lean manufacturing initiatives and improvement in the Construction segment will also help mitigate the effect of lower mining-related sales on its profits.
|
Caterpillar's 5 year average dividend yield of 2.32%, 5 Year Dividend Growth Rate of 9.95% and Payout Ratio of 42.77% are above the industry average of 1.78%, 16.72% and 20.88%, respectively. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Caterpillar Inc.CAT announced that its board of directors of has approved a 10% increase in its quarterly dividend to 77 cents per share.
|
With the increased dividend, Caterpillar's dividend yield will go up from the current 3.30% to 3.48%, higher than Deere & Company's DE 2.60% and Joy Global, Inc.'s JOY 2.10%. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report JOY GLOBAL INC (JOY): Free Stock Analysis Report To read this article on Zacks.com click here. Caterpillar Inc.CAT announced that its board of directors of has approved a 10% increase in its quarterly dividend to 77 cents per share.
|
Caterpillar Inc.CAT announced that its board of directors of has approved a 10% increase in its quarterly dividend to 77 cents per share. The move reflects the company's commitment toward delivering incremental returns to shareholders as well as balance sheet strength. Caterpillar's current payout is 7 cents more than the prior dividend of 70 cents per share.
|
2b88f936-8785-4690-b4d6-cf5a891be067
|
722787.0
|
2015-06-05 00:00:00 UTC
|
Why Investors Should Go Deere Hunting
|
DE
|
https://www.nasdaq.com/articles/why-investors-should-go-deere-hunting-2015-06-05
|
nan
|
nan
|
DE P/E Ratio (TTM) data by YCharts
Deere still trades for just 12 times earnings. That is a significant discount to the broader market, which trades closer to 18 times earnings. Deere is a strong dividend stock as well. Its current yield is 2.5%, which is significantly higher than the stock market average. The company has increased its dividend regularly, by 16% annually over the past five years, even while the company struggles to return to growth.
In addition, Deere management utilizes a significant amount of cash flow to buy back stock. The company bought back $2.8 billion of its own shares over the past four quarters, including $1.1 billion in the past two quarters. These buybacks help to support earnings per share when revenue is declining.
Even though Deere's forecast does not call for an immediate recovery in the agriculture industry, the company should still be able to increase its dividend. That's because Deere maintains a very low payout ratio. Deere's current dividend only comprises just 30% of its trailing 12 month earnings per share, so there's still plenty of room for future dividend growth.
The bottom line is that a cheap valuation and a high dividend yield make Deere an attractive pick for both value investors and income investors.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act quickly, you could be among the savvy investors who enjoy the profits from this stunning change. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article Why Investors Should Go Deere Hunting originally appeared on Fool.com.
Bob Ciura owns shares of Deere & Company. 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 - 2015 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.
|
DE P/E Ratio (TTM) data by YCharts Deere still trades for just 12 times earnings. In addition, Deere management utilizes a significant amount of cash flow to buy back stock. This $19 trillion industry could destroy the Internet One bleeding-edge technology is about to put the World Wide Web to bed.
|
The bottom line is that a cheap valuation and a high dividend yield make Deere an attractive pick for both value investors and income investors. DE P/E Ratio (TTM) data by YCharts Deere still trades for just 12 times earnings. That is a significant discount to the broader market, which trades closer to 18 times earnings.
|
Even though Deere's forecast does not call for an immediate recovery in the agriculture industry, the company should still be able to increase its dividend. Deere's current dividend only comprises just 30% of its trailing 12 month earnings per share, so there's still plenty of room for future dividend growth. The bottom line is that a cheap valuation and a high dividend yield make Deere an attractive pick for both value investors and income investors.
|
Deere is a strong dividend stock as well. Even though Deere's forecast does not call for an immediate recovery in the agriculture industry, the company should still be able to increase its dividend. Deere's current dividend only comprises just 30% of its trailing 12 month earnings per share, so there's still plenty of room for future dividend growth.
|
ad0fa927-7246-42ed-b8e0-4fd59b67ba3c
|
722788.0
|
2015-06-02 00:00:00 UTC
|
Will Deere & Company (DE) Crush Estimates at Its Next Earnings Report? - Tale of the Tape
|
DE
|
https://www.nasdaq.com/articles/will-deere-company-de-crush-estimates-at-its-next-earnings-report-tale-of-the-tape-2015-06
|
nan
|
nan
|
Looking for a stock that might be in a good position to beat earnings at its next report? Consider Deere & Company ( DE ), a firm in the farm machinery space, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, DE has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, DE expected to earn 83 cents per share, while it actually produced earnings of $1.12 per share, a beat of 34.9%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of $1.57 per share, when it actually saw earnings of $2.03 per share instead, representing a 29.3% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Deere & Company. In fact, the Earnings ESP for DE is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for DE, as the firm currently has a Zacks Earnings ESP of 2.13%, so another beat could be around the corner.
This is particularly true when you consider that DE has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that DE could see another beat at its next report, especially if recent trends are any guide.
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.
|
Consider Deere & Company ( DE ), a firm in the farm machinery space, which could be a great candidate for another beat. In fact, in these reports, DE has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations. This is particularly true when you consider that DE has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile.
|
And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that DE could see another beat at its next report, especially if recent trends are any guide. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Consider Deere & Company ( DE ), a firm in the farm machinery space, which could be a great candidate for another beat.
|
Earnings in Focus Two quarters ago, DE expected to earn 83 cents per share, while it actually produced earnings of $1.12 per share, a beat of 34.9%. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that DE could see another beat at its next report, especially if recent trends are any guide. Consider Deere & Company ( DE ), a firm in the farm machinery space, which could be a great candidate for another beat.
|
In fact, the Earnings ESP for DE is positive, which is a great sign of a coming beat. Consider Deere & Company ( DE ), a firm in the farm machinery space, which could be a great candidate for another beat. In fact, in these reports, DE has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.
|
0850ae93-55cc-49e9-b27f-a19d5d03a49d
|
722789.0
|
2015-06-01 00:00:00 UTC
|
Undervalued Stocks in Manufacturing Worth Buying
|
DE
|
https://www.nasdaq.com/articles/undervalued-stocks-manufacturing-worth-buying-2015-06-01
|
nan
|
nan
|
Image source: John Deere.
With all of the attention internet and technology stocks get these days, companies that actually make things aren't getting much love from the market. Manufacturing stocks seem to be out of favor, but that presents an opportunity for investors.
When looking at earnings, growth potential, valuation, and dividends I found four manufacturing stocks I think are undervalued today.
Undervalued farm manufacturer
Deere & Co. makes some of the most iconic farm and mining equipment in the world, and it plays an indispensable role in creating the food we eat.
This is a cyclical business that ebbs and flows with the economy and mineral prices. Farmers will buy equipment when times are good and pinch pennies when they're not, as will mineral miners, which can wreak havoc on earnings from quarter to quarter. But only a small handful of companies even compete with Deere in most of its markets, so over the long term the company can charge enough to make a hefty profit.
Right now, the stock is fairly cheap at 13 times trailing earnings and yielding 2.5% from its dividend.
The steady chip manufacturer worth buying
The chip business is highly competitive, and one of the best ways to stay ahead of competitors is by developing your own technology. This has always been one of Intel 's greatest strengths, and it continues today.
Intel has huge market share in PCs and servers, and its investment throughout the recession in next-generation manufacturing led to its 14-nanometer products and systems on a chip. By developing the manufacturing for such products, Intel can maintain a technology lead, giving the company high margins and strong profits over the long term. At 14.7 times trailing earnings and with a 2.8% dividend yield this stock is a good deal for investors, too.
Post-it Note Flags took a number of manufacturing innovations to produce. Image: The Motley Fool.
The forgotten manufacturing company
3M 's original name was Minnesota Mining and Manufacturing, but it has long been known by its shortened name. At its core, though, the company is still a manufacturing company, making everything from Post-it Notes to Scotch Tape in-house.
The manufacturing prowess doesn't just allow 3M to make strong margins by developing scale and technology that competitors can't copy. It also is a key part of the innovation process. 3M's film manufacturing processes play a key role in modifying and improving current products while creating a foundation for new goods. If 3M wasn't manufacturing adhesives to make tape, the Post-it Note wouldn't have happened; and if it weren't making graphics films it might not have stumbled into making brightness-enhancing films that are probably in the device you're using to read this article.
3M isn't as cheap as the two stocks I've talked about so far at 21 time trailing earnings, but it has picked up organic growth recently and a 2.5% dividend yield is among the safest on the market.
Residential rooftop solar system. Image: SunPower.
Let the sun shine on this stock
The solar industry is finally turning a corner to long-term global viability, and no other company can match the manufacturing expertise SunPower has built in the business. SunPower makes a solar cell that is fundamentally different from other manufacturers' and has the industry's highest efficiency at 21.5%.
SunPower is also in high growth mode, planning to triple capacity between 2014 and 2019. Combined with a planned yieldco that will allow for long-term profit from projects it builds, SunPower is just starting to show the value it can create for investors.
SunPower trades at 27 times earnings today, but that's misleading because in anticipation of the yieldco it is stashing projects on its balance sheet instead of selling them, as it has done in the past. Once the yieldco and expansion plans come to fruition I think this will be one of the best values on the market in a booming solar industry.
Value to be found in manufacturing
These are four stocks that I think present great value for investors in manufacturing. They each have competitive advantage that will keep them in front of the market, and from a financial perspective they're providing great value and dividends as well. That's a recipe for long-term success on the stock market.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act quickly, you could be among the savvy investors who enjoy the profits from this stunning change. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article Undervalued Stocks in Manufacturing Worth Buying originally appeared on Fool.com.
Travis Hoium owns shares of 3M, Intel, and SunPower. The Motley Fool recommends Intel. 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 - 2015 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.
|
By developing the manufacturing for such products, Intel can maintain a technology lead, giving the company high margins and strong profits over the long term. 3M isn't as cheap as the two stocks I've talked about so far at 21 time trailing earnings, but it has picked up organic growth recently and a 2.5% dividend yield is among the safest on the market. Image source: John Deere.
|
The steady chip manufacturer worth buying The chip business is highly competitive, and one of the best ways to stay ahead of competitors is by developing your own technology. By developing the manufacturing for such products, Intel can maintain a technology lead, giving the company high margins and strong profits over the long term. The article Undervalued Stocks in Manufacturing Worth Buying originally appeared on Fool.com.
|
If 3M wasn't manufacturing adhesives to make tape, the Post-it Note wouldn't have happened; and if it weren't making graphics films it might not have stumbled into making brightness-enhancing films that are probably in the device you're using to read this article. Image source: John Deere. When looking at earnings, growth potential, valuation, and dividends I found four manufacturing stocks I think are undervalued today.
|
When looking at earnings, growth potential, valuation, and dividends I found four manufacturing stocks I think are undervalued today. Image source: John Deere. Undervalued farm manufacturer Deere & Co. makes some of the most iconic farm and mining equipment in the world, and it plays an indispensable role in creating the food we eat.
|
f9b8f36e-2941-43d7-9596-66026659847a
|
722790.0
|
2015-06-01 00:00:00 UTC
|
4 Key Conclusions From Deere & Company Earnings
|
DE
|
https://www.nasdaq.com/articles/4-key-conclusions-deere-company-earnings-2015-06-01
|
nan
|
nan
|
The recent second-quarter earnings from Deere & Company helped the stock to outperform the S&P 500 on a year-to-date basis. The stock has attracted a lot of attention in 2015, not least from the news that Warren Buffett has been buying it for Berkshire Hathaway .
How did the recent results reflect upon the company's prospects in 2015? Let's take a look at four key conclusions.
DE data by YCharts .
Why was earnings guidance raised?
First, Deere's management cheered investors by increasing its full-year forecast for net income to $1.9 billion from a previous forecast of $1.8 billion. However, don't get too excited about calling a bottom in the agricultural sector just yet. In reality, the guidance hike -- which occurred despite increased headwinds from a strengthening U.S. dollar -- was mainly due to an increase in cost savings rather than an increase in revenue estimations. For example, selling, administrative, and general expense costs are now expected to be down 11% in 2015 versus a previous estimate for a 9% reduction.
With regard to revenue, management expects full-year net sales to be down 19% rather than a previous forecast for a 17% decline. Moreover, even on a currency-adjusted basis, Deere now expects full-year sales to fall 15% versus a previous forecast of a 14% decline.
The chart below breaks out how the full-year 2015 forecasts have changed in the last three quarters. As you can see, expectations for full-year sales growth have gotten worse in both equipment operations, but financial services income expectations are higher.
Source: Deere & Company presentation. All Sales growth figures are currency-adjusted.
Price increases
Second, despite falling sales and a weak end market, Deere managed to increase equipment prices by 2% in the second quarter, a figure in-line with the company's forecast for 2% price realization in 2015. Moreover, Deere appears to be managing its inventory position better than its rivals.
When answering a question from Morgan Stanley analyst Nicole DeBlase on the subject of pricing, Deere's Director of Investor Relations Tony Huegel talked about Deere's agricultural equipment: "Inventory levels are, as a percent of sales, about half of what the rest of the industry would be. But certainly that puts pressure because those inventories need to come down, and so you do see some pricing pressure."
Crop prices?
Third, management affirmed its belief that, given the possibility of poorer crop-growing weather, crop prices could move higher. Higher prices for crops like corn, wheat, soybean, and cotton are key for Deere because they imply higher income for farmers, which usually translates into more spending on agricultural machinery.
On theearnings call Deere's Manager of Investor Communications Susan Karlix described the global grain stocks-to-use ratios as being at "somewhat sensitive" levels. She went on to argue: "Unfavorable growing conditions in any key region of the world as well as unknown impacts from any geopolitical tensions could lower production, reduce stocks-to-use ratio, and result in prices quickly moving higher."
Indeed, if we get poorer crop-growing weather, you can expect Deere's stock price to move higher as the market prices in better expectations for the stock. The following chart demonstrates how key crop prices have fallen in the last few years.
U.S. Corn Farm Price Received data by YCharts .
Leasing
Fourth, on a less positive note, Deere appears to be facing increased risk due to the expansion of its leasing operations. When Deere leases equipment rather than selling it outright, it runs the risk of creating a glut of used equipment that could create pricing pressure for its used and new equipment sales. Deere needs to make sure that it values the equipment properly in order to avoid having to take a future hit.
JP Morgan analyst Ann Duignan referenced the 31% increase in equipment leasing, and asked a question on the matter. Here's part of Huegel's response:
In other words, Huegel is acknowledging the increased risk that comes with leasing. It's something to look out for, particularly if the end-market outlook worsens, and industry pricing comes under further pressure.
The takeaway
The hike in earnings guidance is good news, but it's not coming from an improvement in the industry outlook. Deere is doing a good job of managing costs and inventory levels, but risk is rising due to the increase in leasing activity.
Ultimately, Deere's stock price is likely to move around based on sentiment about movements in farmers' incomes, and that usually requires crop prices to go higher. Don't get too excited by these results, but the company is executing well in a difficult environment.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act quickly, you could be among the savvy investors who enjoy the profits from this stunning change. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article 4 Key Conclusions From Deere & Company Earnings originally appeared on Fool.com.
Lee Samaha 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 - 2015 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.
|
On theearnings call Deere's Manager of Investor Communications Susan Karlix described the global grain stocks-to-use ratios as being at "somewhat sensitive" levels. Deere is doing a good job of managing costs and inventory levels, but risk is rising due to the increase in leasing activity. The recent second-quarter earnings from Deere & Company helped the stock to outperform the S&P 500 on a year-to-date basis.
|
First, Deere's management cheered investors by increasing its full-year forecast for net income to $1.9 billion from a previous forecast of $1.8 billion. Moreover, even on a currency-adjusted basis, Deere now expects full-year sales to fall 15% versus a previous forecast of a 14% decline. Indeed, if we get poorer crop-growing weather, you can expect Deere's stock price to move higher as the market prices in better expectations for the stock.
|
Price increases Second, despite falling sales and a weak end market, Deere managed to increase equipment prices by 2% in the second quarter, a figure in-line with the company's forecast for 2% price realization in 2015. When answering a question from Morgan Stanley analyst Nicole DeBlase on the subject of pricing, Deere's Director of Investor Relations Tony Huegel talked about Deere's agricultural equipment: "Inventory levels are, as a percent of sales, about half of what the rest of the industry would be. Indeed, if we get poorer crop-growing weather, you can expect Deere's stock price to move higher as the market prices in better expectations for the stock.
|
Indeed, if we get poorer crop-growing weather, you can expect Deere's stock price to move higher as the market prices in better expectations for the stock. 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 recent second-quarter earnings from Deere & Company helped the stock to outperform the S&P 500 on a year-to-date basis.
|
1fb7137a-c74f-4a5a-8d47-29918b4c96e8
|
722791.0
|
2015-05-29 00:00:00 UTC
|
Weekly Market Wrap: May 29, 2015
|
DE
|
https://www.nasdaq.com/articles/weekly-market-wrap-may-29-2015-2015-05-29
|
nan
|
nan
|
The twenty-first full trading week of 2015 comes to a close with the Dow Jones, S&P 500 and NASDAQ composite all lower on the day in late afternoon trading.
Most actively traded stocks include Apple (AAPL) down 0.97%, Bank of America (BAC) lower by 0.84%, Intel (INTC) up 1.01%, and Pfizer (PFE) higher by 0.86%.
The S&P 500, NASDAQ and Dow are all lower in the last five days of trading.
Crude oil futures are higher this week, trading at $60.28 per barrel on Friday afternoon.
And Gold futures are down this week, trading at $1190.89 an ounce this afternoon.
In economic news, sales of new single-family houses in April 2015 were at a seasonally adjusted annual rate of 517,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 6.8 percent above the revised March rate of 484,000 and is 26.1 percent above the April 2014 estimate of 410,000.
The median sales price of new houses sold in April 2015 was $297,300; the average sales price was $341,500. The seasonally adjusted estimate of new houses for sale at the end of April was 205,000. This represents a supply of 4.8 months at the current sales rate.
In the week ending May 23, the advance figure for seasonally adjusted initial claims was 282,000, an increase of 7,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 274,000 to 275,000. The 4-week moving average was 271,500, an increase of 5,000 from the previous week's revised average. The previous week's average was revised up by 250 from 266,250 to 266,500.
Real gross domestic product -- the value of the production of goods and services in the United States, adjusted for price changes -- decreased at an annual rate of 0.7 percent in the first quarter of 2015, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.2 percent.
In corporate dividend news, Cisco ( CSCO ) declared a quarterly dividend of $0.21 per common share to be paid on July 22, 2015 to all shareholders of record as of the close of business on July 6, 2015.
HP ( HPQ ) has declared a regular cash dividend of $0.176 per share on the company's common stock. The dividend, the third in HP's fiscal year 2015, is payable on July 1, 2015, to stockholders of record as of the close of business on June 10, 2015.
Tiffany & Co. ( TIF ) has declared a regular quarterly dividend of $0.40 per share of Common Stock, representing a 5% increase in the quarterly rate. This action increases the quarterly dividend from $0.38 per share to the new rate of $0.40 per share.
Merck ( MRK ) has declared a quarterly dividend of $0.45 per share of the company's common stock for the third quarter of 2015. Payment will be made on July 8, 2015, to stockholders of record at the close of business on June 15, 2015.
The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable August 3, 2015, to stockholders of record on June 30, 2015.
Weyerhaeuser Company (WY) declared a dividend of $0.29 per share on the Common Stock of the company, payable in cash on June 19, 2015, to holders of record of such common shares at the close of business on June 5, 2015.
This is the 'Weekly Market Wrap' for Friday May 29, 2015.
Please join us on Monday for the Week Ahead Market Report.
VIDEO: Weekly Market Wrap: May 29, 2015
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Most actively traded stocks include Apple (AAPL) down 0.97%, Bank of America (BAC) lower by 0.84%, Intel (INTC) up 1.01%, and Pfizer (PFE) higher by 0.86%. The dividend, the third in HP's fiscal year 2015, is payable on July 1, 2015, to stockholders of record as of the close of business on June 10, 2015. The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable August 3, 2015, to stockholders of record on June 30, 2015.
|
Tiffany & Co. ( TIF ) has declared a regular quarterly dividend of $0.40 per share of Common Stock, representing a 5% increase in the quarterly rate. The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable August 3, 2015, to stockholders of record on June 30, 2015. Weyerhaeuser Company (WY) declared a dividend of $0.29 per share on the Common Stock of the company, payable in cash on June 19, 2015, to holders of record of such common shares at the close of business on June 5, 2015.
|
In corporate dividend news, Cisco ( CSCO ) declared a quarterly dividend of $0.21 per common share to be paid on July 22, 2015 to all shareholders of record as of the close of business on July 6, 2015. Tiffany & Co. ( TIF ) has declared a regular quarterly dividend of $0.40 per share of Common Stock, representing a 5% increase in the quarterly rate. Weyerhaeuser Company (WY) declared a dividend of $0.29 per share on the Common Stock of the company, payable in cash on June 19, 2015, to holders of record of such common shares at the close of business on June 5, 2015.
|
Most actively traded stocks include Apple (AAPL) down 0.97%, Bank of America (BAC) lower by 0.84%, Intel (INTC) up 1.01%, and Pfizer (PFE) higher by 0.86%. Crude oil futures are higher this week, trading at $60.28 per barrel on Friday afternoon. In economic news, sales of new single-family houses in April 2015 were at a seasonally adjusted annual rate of 517,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development.
|
e61f651f-211c-41bb-ada7-742a2c6a711c
|
722792.0
|
2015-05-28 00:00:00 UTC
|
AGCO Opens First Future Farm in Africa to Empower Locals - Analyst Blog
|
DE
|
https://www.nasdaq.com/articles/agco-opens-first-future-farm-in-africa-to-empower-locals-analyst-blog-2015-05-28
|
nan
|
nan
|
AGCO CorporationAGCO has opened its first Future Farm and Learning Center in Africa, near Lusaka, Zambia. The Future Farm will help empower local communities to develop a sustainable food production system and to increase farm productivity by implementing modern farming techniques. The 150-hectare farm is divided into a diverse range of demonstration crop areas all cultivated, planted and harvested using the company's full-line of agricultural equipment.
Africa's population is expected to rise to two billion by 2050. As a result, the need for inclusive, sustainable mechanization and training, and to inspire the next generation to move into agriculture is now more than ever. AGCO's goal is to provide agricultural solutions to all African farmers. Mechanization is a key ingredient to increasing agricultural productivity in Africa. Moreover, other constraints such as lack of improved seed, the right blends of fertilizers, the need for favorable trade and land policies, quality post-harvest management solutions and functional markets for harvested crops also need to be addressed.
The Future Farm's facilities will include a state-of-the-art Mechanization Learning Center as well as a Grain and Poultry Learning Center. Small to medium scale farmers with limited access to modern farming practices will benefit from a range of training courses from basic agronomy, post-harvest solutions and mechanization. Training on best practice for protein production, grain storage and precision farming technologies will target the needs of large-scale commercial farming.
Currently, approximately 200 people are living in the community on the farm. In 2015, the cropped areas cover 70 hectares and the crops harvested are maize, soybean, sunn hemp, orange maize, ground nuts, cassava, sorghum, cowpea and sunflower.
Duluth, GA-based AGCO is a global leader in the design, manufacture and distribution of agricultural machinery. It supports productive farming through a wide range of tractors, combines, hay tools, sprayers, forage equipment, tillage, implements, grain storage and protein production systems as well as other related replacement parts.
AGCO currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Deere & Company DE , Capstone Turbine Corp. CPST and AO Smith Corp. AOS . All of 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 Day s. 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
AGCO CORP (AGCO): Free Stock Analysis Report
CAPSTONE TURBIN (CPST): Free Stock Analysis Report
SMITH (AO) CORP (AOS): 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 150-hectare farm is divided into a diverse range of demonstration crop areas all cultivated, planted and harvested using the company's full-line of agricultural equipment. Moreover, other constraints such as lack of improved seed, the right blends of fertilizers, the need for favorable trade and land policies, quality post-harvest management solutions and functional markets for harvested crops also need to be addressed. Small to medium scale farmers with limited access to modern farming practices will benefit from a range of training courses from basic agronomy, post-harvest solutions and mechanization.
|
Some better-ranked stocks in the sector include Deere & Company DE , Capstone Turbine Corp. CPST and AO Smith Corp. AOS . Click to get this free report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report CAPSTONE TURBIN (CPST): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report To read this article on Zacks.com click here. The Future Farm will help empower local communities to develop a sustainable food production system and to increase farm productivity by implementing modern farming techniques.
|
The Future Farm will help empower local communities to develop a sustainable food production system and to increase farm productivity by implementing modern farming techniques. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report AGCO CORP (AGCO): Free Stock Analysis Report CAPSTONE TURBIN (CPST): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report To read this article on Zacks.com click here. The 150-hectare farm is divided into a diverse range of demonstration crop areas all cultivated, planted and harvested using the company's full-line of agricultural equipment.
|
The Future Farm will help empower local communities to develop a sustainable food production system and to increase farm productivity by implementing modern farming techniques. The 150-hectare farm is divided into a diverse range of demonstration crop areas all cultivated, planted and harvested using the company's full-line of agricultural equipment. AGCO's goal is to provide agricultural solutions to all African farmers.
|
72073fa6-6d9a-4040-bc14-6e22c58de9bb
|
722793.0
|
2015-05-27 00:00:00 UTC
|
Deere (DE) Hits a New 52-Week High on Q2 Earnings Beat - Analyst Blog
|
DE
|
https://www.nasdaq.com/articles/deere-de-hits-a-new-52-week-high-on-q2-earnings-beat-analyst-blog-2015-05-27
|
nan
|
nan
|
On May 26, 2015, shares of Deere & CompanyDE scaled a new 52-week high of $94.24 following the company's remarkable second-quarter fiscal 2015 results, reported on May 22. Deere surpassed earnings estimates and provided an upbeat outlook for fiscal 2015 despite poor year-over-year comparisons.
This Moline, IL-based producer of agricultural equipment has a market cap of $31.7 billion. The stock closed yesterday's session at $93.80, reflecting a year-to-date return of about 6.8% and a one-year return of over 6%, outperforming the S&P 500.
The average volume of shares traded over the last three months was roughly 2640K. The company has outperformed the Zacks Consensus Estimate in each of the four trailing quarters with an average positive surprise of 21.61%.
Key Growth Catalysts
Deere's earnings per share came in at $2.03 in the second quarter, comfortably beating the Zacks Consensus Estimate of $1.57 but deteriorating 23% from the year-ago quarter. The company raised its 2015 net income guidance to $1.9 billion from the previous expectation of $1.8 billion. Deere expects to thrive in 2015 on the back of its efforts to establish a more resilient business model.
On Mar 31, 2015, Deere divested its crop insurance unit to Farmers Mutual Hail Insurance Company (FMH), as agreed upon in Dec 2014. The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the business unit. Deere will continue to design, manufacture and offer technology, equipment and services in its precision agriculture offerings.
Deere foresees global sales for Construction & Forestry equipment to advance about 2% in 2015, reflecting further economic recovery and higher housing starts in the U.S. Global forestry sales are expected to hold steady with 2014 levels. The company expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, benefiting from general economic growth.
Deere's ability to meet customer demand for advanced machinery and services through product introduction will drive future growth. Deere's all-new 8000 Series Self-Propelled Forage Harvester represents a complete update with a total of 5,500 new parts and offers innovative features such as field guidance, products, and smart unloading systems. The new machine addresses the needs of dairy customers as well as biogas producers for higher efficiency and productivity. Further, the model 1050K is the largest crawler designed by Deere and is part of its growing production-class equipment portfolio.
Additionally, Deere announced workforce adjustments at several factories in Iowa and Illinois in Jan 2015, as the company continues to align the size of its manufacturing workforce to market demand for products. The actions include indefinite layoffs at five locations as well as an extended inventory adjustment shutdown at another factory. In addition, Deere declared that it has added new jobs at two locations that build construction and forestry equipment. These actions will drive the company's growth.
Deere is well positioned to benefit from increased global demand for food, shelter and infrastructure. Global trends based on population growth and rising living standards remain intact and are largely unaffected by periodic swings in farming economy. Moreover, Deere will benefit from improvement in the nonresidential construction sector, economic recovery and higher housing starts as well as innovative product introduction.
Deere currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the sector include Astec Industries, Inc. ASTE , AO Smith Corp. AOS and Allegion plc Ordinary Shares ALLE . 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
DEERE & CO (DE): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis Report
ASTEC INDS INC (ASTE): 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.
|
Deere's all-new 8000 Series Self-Propelled Forage Harvester represents a complete update with a total of 5,500 new parts and offers innovative features such as field guidance, products, and smart unloading systems. Moreover, Deere will benefit from improvement in the nonresidential construction sector, economic recovery and higher housing starts as well as innovative product introduction. On May 26, 2015, shares of Deere & CompanyDE scaled a new 52-week high of $94.24 following the company's remarkable second-quarter fiscal 2015 results, reported on May 22.
|
Deere foresees global sales for Construction & Forestry equipment to advance about 2% in 2015, reflecting further economic recovery and higher housing starts in the U.S. Stocks to Consider Better-ranked stocks in the sector include Astec Industries, Inc. ASTE , AO Smith Corp. AOS and Allegion plc Ordinary Shares ALLE . Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report ALLEGION PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the business unit. Deere foresees global sales for Construction & Forestry equipment to advance about 2% in 2015, reflecting further economic recovery and higher housing starts in the U.S. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report ALLEGION PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Deere will continue to design, manufacture and offer technology, equipment and services in its precision agriculture offerings. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report ALLEGION PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. On May 26, 2015, shares of Deere & CompanyDE scaled a new 52-week high of $94.24 following the company's remarkable second-quarter fiscal 2015 results, reported on May 22.
|
73637a04-141f-45b6-bc0d-06b2149ca0a7
|
722794.0
|
2015-05-27 00:00:00 UTC
|
Daily Dividend Report: MRK, DE, ESS, STR, DSW, MOV
|
DE
|
https://www.nasdaq.com/articles/daily-dividend-report-mrk-de-ess-str-dsw-mov-2015-05-27
|
nan
|
nan
|
Merck ( MRK ) has declared a quarterly dividend of $0.45 per share of the company's common stock for the third quarter of 2015. Payment will be made on July 8, 2015, to stockholders of record at the close of business on June 15, 2015.
The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable August 3, 2015, to stockholders of record on June 30, 2015.
Essex Property Trust ( ESS ) has declared a regular quarterly cash dividend of $1.44 per common share payable July 15, 2015 to shareholders of record as of June 30, 2015.
Questar Corp.'s ( STR ) approved a $0.21 quarterly common stock cash dividend. The dividend, payable June 22, 2015, to shareholders of record on June 5, 2015, is the same as the previous quarter.
DSW declared a quarterly cash dividend payment of $0.20 per share. The dividend will be paid on June 30, 2015 to shareholders of record at the close of business on June 19, 2015.
Movado Group ( MOV ) approved the payment on June 22, 2015 of a cash dividend in the amount of $0.11 for each share of the Company's outstanding common stock and class A common stock held by shareholders of record as of the close of business on June 8, 2015.
VIDEO: Daily Dividend Report: MRK, DE, ESS, STR, DSW, MOV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable August 3, 2015, to stockholders of record on June 30, 2015. Essex Property Trust ( ESS ) has declared a regular quarterly cash dividend of $1.44 per common share payable July 15, 2015 to shareholders of record as of June 30, 2015. Movado Group ( MOV ) approved the payment on June 22, 2015 of a cash dividend in the amount of $0.11 for each share of the Company's outstanding common stock and class A common stock held by shareholders of record as of the close of business on June 8, 2015.
|
The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable August 3, 2015, to stockholders of record on June 30, 2015. Essex Property Trust ( ESS ) has declared a regular quarterly cash dividend of $1.44 per common share payable July 15, 2015 to shareholders of record as of June 30, 2015. VIDEO: Daily Dividend Report: MRK, DE, ESS, STR, DSW, MOV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable August 3, 2015, to stockholders of record on June 30, 2015. Essex Property Trust ( ESS ) has declared a regular quarterly cash dividend of $1.44 per common share payable July 15, 2015 to shareholders of record as of June 30, 2015. Movado Group ( MOV ) approved the payment on June 22, 2015 of a cash dividend in the amount of $0.11 for each share of the Company's outstanding common stock and class A common stock held by shareholders of record as of the close of business on June 8, 2015.
|
The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 per share on common stock, payable August 3, 2015, to stockholders of record on June 30, 2015. DSW declared a quarterly cash dividend payment of $0.20 per share. Movado Group ( MOV ) approved the payment on June 22, 2015 of a cash dividend in the amount of $0.11 for each share of the Company's outstanding common stock and class A common stock held by shareholders of record as of the close of business on June 8, 2015.
|
53edb911-7e46-4d7d-add7-785907ef2a52
|
722795.0
|
2015-05-26 00:00:00 UTC
|
Company News for May 26, 2015 - Corporate Summary
|
DE
|
https://www.nasdaq.com/articles/company-news-for-may-26-2015-corporate-summary-2015-05-26-0
|
nan
|
nan
|
• Shares of Deere & Company ( DE ) gained 4.4% after the company reported second quarter earnings per share of $2.03, beating the Zacks Consensus Estimate of $1.57
• Shares of Foot Locker, Inc. ( FL ) declined 0.8% after the company posted first quarter revenues of $1,916 million that fell short of the Zacks Consensus Estimate of $1,922 million
• Campbell Soup Company's ( CPB ) shares advanced 2.1% after the company reported third quarter earnings per share of $0.62 that beat the Zacks Consensus Estimate of $0.51
• Shares of Expedia Inc. ( EXPE ) soared 6.7% after the company sold its stake in eLong Inc. ( LONG ) for $671 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
FOOT LOCKER INC (FL): Free Stock Analysis Report
CAMPBELL SOUP (CPB): Free Stock Analysis Report
EXPEDIA INC (EXPE): Free Stock Analysis Report
ELONG INC-ADR (LONG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
• Shares of Deere & Company ( DE ) gained 4.4% after the company reported second quarter earnings per share of $2.03, beating the Zacks Consensus Estimate of $1.57 • Shares of Foot Locker, Inc. ( FL ) declined 0.8% after the company posted first quarter revenues of $1,916 million that fell short of the Zacks Consensus Estimate of $1,922 million • Campbell Soup Company's ( CPB ) shares advanced 2.1% after the company reported third quarter earnings per share of $0.62 that beat the Zacks Consensus Estimate of $0.51 • Shares of Expedia Inc. ( EXPE ) soared 6.7% after the company sold its stake in eLong Inc. ( LONG ) for $671 million Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report FOOT LOCKER INC (FL): Free Stock Analysis Report CAMPBELL SOUP (CPB): Free Stock Analysis Report EXPEDIA INC (EXPE): Free Stock Analysis Report ELONG INC-ADR (LONG): 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.
|
• Shares of Deere & Company ( DE ) gained 4.4% after the company reported second quarter earnings per share of $2.03, beating the Zacks Consensus Estimate of $1.57 • Shares of Foot Locker, Inc. ( FL ) declined 0.8% after the company posted first quarter revenues of $1,916 million that fell short of the Zacks Consensus Estimate of $1,922 million • Campbell Soup Company's ( CPB ) shares advanced 2.1% after the company reported third quarter earnings per share of $0.62 that beat the Zacks Consensus Estimate of $0.51 • Shares of Expedia Inc. ( EXPE ) soared 6.7% after the company sold its stake in eLong Inc. ( LONG ) for $671 million Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report FOOT LOCKER INC (FL): Free Stock Analysis Report CAMPBELL SOUP (CPB): Free Stock Analysis Report EXPEDIA INC (EXPE): Free Stock Analysis Report ELONG INC-ADR (LONG): 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.
|
• Shares of Deere & Company ( DE ) gained 4.4% after the company reported second quarter earnings per share of $2.03, beating the Zacks Consensus Estimate of $1.57 • Shares of Foot Locker, Inc. ( FL ) declined 0.8% after the company posted first quarter revenues of $1,916 million that fell short of the Zacks Consensus Estimate of $1,922 million • Campbell Soup Company's ( CPB ) shares advanced 2.1% after the company reported third quarter earnings per share of $0.62 that beat the Zacks Consensus Estimate of $0.51 • Shares of Expedia Inc. ( EXPE ) soared 6.7% after the company sold its stake in eLong Inc. ( LONG ) for $671 million Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report FOOT LOCKER INC (FL): Free Stock Analysis Report CAMPBELL SOUP (CPB): Free Stock Analysis Report EXPEDIA INC (EXPE): Free Stock Analysis Report ELONG INC-ADR (LONG): 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.
|
• Shares of Deere & Company ( DE ) gained 4.4% after the company reported second quarter earnings per share of $2.03, beating the Zacks Consensus Estimate of $1.57 • Shares of Foot Locker, Inc. ( FL ) declined 0.8% after the company posted first quarter revenues of $1,916 million that fell short of the Zacks Consensus Estimate of $1,922 million • Campbell Soup Company's ( CPB ) shares advanced 2.1% after the company reported third quarter earnings per share of $0.62 that beat the Zacks Consensus Estimate of $0.51 • Shares of Expedia Inc. ( EXPE ) soared 6.7% after the company sold its stake in eLong Inc. ( LONG ) for $671 million Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report FOOT LOCKER INC (FL): Free Stock Analysis Report CAMPBELL SOUP (CPB): Free Stock Analysis Report EXPEDIA INC (EXPE): Free Stock Analysis Report ELONG INC-ADR (LONG): 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.
|
7f395544-cc7d-4203-a980-a3faf403b7cc
|
722796.0
|
2015-05-22 00:00:00 UTC
|
Dow Jones Futures Gain 14 Points Ahead of Yellen Speech
|
DE
|
https://www.nasdaq.com/articles/dow-jones-futures-gain-14-points-ahead-yellen-speech-2015-05-22
|
nan
|
nan
|
MoneyMorning.com Report - Good morning! For Friday, May 22, here are your U.S. stock futures , topmarket news earnings reports, pre-market movers, and stocks to watch in thestock market today..
Stock Futures Today
Dow Jones futures forecasted a 14-point gain ahead of Federal Reserve Chair Janet Yellen's speech at 1 p.m. this afternoon. She will discuss the outlook of the U.S. economy. Investors will look for clues on the Fed's interest rate plan. [ Here's what the FOMC meeting minutes released Wednesday had to say. ]
Although both the Dow Jones and the S&P are hovering near record levels, investors can expect lower volumes today as the Memorial Day holiday approaches and the quarterly earnings season ends.
On Thursday, the DJIA Index ticked upward thanks to earnings reports and expectations that the Federal Reserve will not raise interest rates until next year. The S&P 500 hit yet another record.
Top News in the Stock Market Today
The Stock Market Today: In addition to Yellen's speech, investors today will keep their focus on U.S. economic data, which includes the Consumer Price Index.
Earnings Reports: Companies reporting earnings this morning include Foot Locker Inc. ( FL ), Hibbett Sports Inc. (Nasdaq: HIBB), Campbell Soup Co. ( CPB ), and ANN Inc. ( ANN ).
Oil Prices Today: Oil prices were sluggish this morning, ahead of the weekend that kicks off driving season in the United States. WTI crude futures for June fell 0.8% this morning to hit $60.22 per barrel. Meanwhile, Brent oil was down 1.1% to hit $65.81 per barrel.
Pre-Market Movers in the Stock Market Today: HPQ, DE, BBRY
Pre-Market Movers 1 - HPQ: Shares of the Hewlett-Packard Co. ( HPQ ) were on the rise this morning after the company beat Wall Street earnings estimates, but the world's second-largest PC manufacturer offered a cautious outlook for the road ahead. The hardware giant said it had per-share earnings of $0.87, besting Wall Street expectations by a penny. It also announced plans to sell controlling 51% stake in its China-based data-networking company to China's Tsinghua Unigroup for roughly $2.3 billion.
Pre-Market Movers 2 -BBRY: Shares of BlackBerry Ltd . (Nasdaq: BBRY) were up more than 3% on news that the tech firm plans to purchase roughly 2.6% of outstanding shares in a buyback program. The company said it is engaging in the buyback plan to offset any negative impact of an employee-stock-purchase plan that is poised to go into effect.
Pre-Market Movers 3 -DE: Shares of Deere & Co. ( DE ) jumped more than 3.4% this morning after the company reported positive quarterly earnings. The heavy equipment maker reported per-share quarterly earnings of $2.03, well ahead of Wall Street's projections of $1.55. Deere had a small downturn in revenues, but outpaced expectations given significant weaknesses in the global agricultural sector.
Stocks to Watch Today: EXPE, CTRP, AMZN
Stocks to Watch No. 1: EXPE: Global travel operator Expedia Inc. (Nasdaq: EXPE) said it has sold its 62.4% stake in China travel site eLong. The firm sold its shares of $671 million to a consortium of buyers that included Ctrip.com International Ltd. (Nasdaq ADR: CTRP). Shares of CTRP were up more than 5% on news of the deal. Shares of eLong Inc. (Nasdaq ADR: LONG) jumped more than 36% this morning.
Stocks to Watch No.2 - AMZN: Shares of Amazon.com Inc. (Nasdaq: AMZN) were climbing again this morning after yesterday's announcement that the company's Amazon Prime Now one-hour delivery services will soon be available in Manhattan. The services guarantees one-hour deliver of groceries, meals, and baked goods. Shares of Amazon were up more than 1.8% during yesterday's trading session.
Today's U.S. Economic Calendar (all times EST)
Consumer Price Index at 8:30 a.m.
PMI Manufacturing Index Flash at 9:45 a.m.
Federal Reserve Chair Janet Yellen speaks at 1 p.m.
SIFMA Close 2 p.m.
What Investors Must Know This Week
How to Grab Profits During a Stock Market Crash
M&A: Invest in the Next Tech Takeover Targets
How to Profit from the Keystone Pipeline Debate
To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. For Friday, May 22, here are your U.S. stock futures , topmarket news earnings reports, pre-market movers, and stocks to watch in thestock market today.. Stock Futures Today Dow Jones futures forecasted a 14-point gain ahead of Federal Reserve Chair Janet Yellen's speech at 1 p.m. this afternoon.
|
For Friday, May 22, here are your U.S. stock futures , topmarket news earnings reports, pre-market movers, and stocks to watch in thestock market today.. Stock Futures Today Dow Jones futures forecasted a 14-point gain ahead of Federal Reserve Chair Janet Yellen's speech at 1 p.m. this afternoon. Pre-Market Movers in the Stock Market Today: HPQ, DE, BBRY Pre-Market Movers 1 - HPQ: Shares of the Hewlett-Packard Co. ( HPQ ) were on the rise this morning after the company beat Wall Street earnings estimates, but the world's second-largest PC manufacturer offered a cautious outlook for the road ahead. Today's U.S. Economic Calendar (all times EST) Consumer Price Index at 8:30 a.m. PMI Manufacturing Index Flash at 9:45 a.m. Federal Reserve Chair Janet Yellen speaks at 1 p.m. SIFMA Close 2 p.m. What Investors Must Know This Week How to Grab Profits During a Stock Market Crash M&A: Invest in the Next Tech Takeover Targets How to Profit from the Keystone Pipeline Debate To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free .
|
For Friday, May 22, here are your U.S. stock futures , topmarket news earnings reports, pre-market movers, and stocks to watch in thestock market today.. Stock Futures Today Dow Jones futures forecasted a 14-point gain ahead of Federal Reserve Chair Janet Yellen's speech at 1 p.m. this afternoon. Pre-Market Movers in the Stock Market Today: HPQ, DE, BBRY Pre-Market Movers 1 - HPQ: Shares of the Hewlett-Packard Co. ( HPQ ) were on the rise this morning after the company beat Wall Street earnings estimates, but the world's second-largest PC manufacturer offered a cautious outlook for the road ahead. Today's U.S. Economic Calendar (all times EST) Consumer Price Index at 8:30 a.m. PMI Manufacturing Index Flash at 9:45 a.m. Federal Reserve Chair Janet Yellen speaks at 1 p.m. SIFMA Close 2 p.m. What Investors Must Know This Week How to Grab Profits During a Stock Market Crash M&A: Invest in the Next Tech Takeover Targets How to Profit from the Keystone Pipeline Debate To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free .
|
For Friday, May 22, here are your U.S. stock futures , topmarket news earnings reports, pre-market movers, and stocks to watch in thestock market today.. Stock Futures Today Dow Jones futures forecasted a 14-point gain ahead of Federal Reserve Chair Janet Yellen's speech at 1 p.m. this afternoon. Pre-Market Movers 3 -DE: Shares of Deere & Co. ( DE ) jumped more than 3.4% this morning after the company reported positive quarterly earnings. Today's U.S. Economic Calendar (all times EST) Consumer Price Index at 8:30 a.m. PMI Manufacturing Index Flash at 9:45 a.m. Federal Reserve Chair Janet Yellen speaks at 1 p.m. SIFMA Close 2 p.m. What Investors Must Know This Week How to Grab Profits During a Stock Market Crash M&A: Invest in the Next Tech Takeover Targets How to Profit from the Keystone Pipeline Debate To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free .
|
6ba14d95-2ea2-44f0-a8b2-a235806fb634
|
722797.0
|
2015-05-22 00:00:00 UTC
|
Deere Q2 Earnings Beat, Lags Y/Y on Soft Farm Economy - Analyst Blog
|
DE
|
https://www.nasdaq.com/articles/deere-q2-earnings-beat-lags-y-y-on-soft-farm-economy-analyst-blog-2015-05-22
|
nan
|
nan
|
Deere & Company' s DE second-quarter fiscal 2015 earnings declined around 23% year-over-year to $2.03 per share owing to slowdown in global farm economy. Earnings, however, beat the Zacks Consensus Estimate of $1.57, delivering an earnings surprise of 29%.
Deere & Company - Earnings Surprise | FindTheCompany
Operational Update
Deere's worldwide total sales dipped 18% year over year to $8.12 billion. However, revenues surpassed the Zacks Consensus Estimate of $7.60 billion. Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) were $7.4 billion, down 20% year over year, including a price realization of 2%, offset by a 5% unfavorable impact from currency translation. Region-wise, equipment net sales were down 14% in the U.S. and Canada, and 28% in rest of the world.
Cost of sales in the quarter decreased 17% year over year to $5.69 billion. Gross profit for the quarter came in at $2.48 billion, down 19.5% year over year. Selling, administrative and general expenses decreased 12.6% to $740 million. Operating profit declined 31% year over year to $1.09 billion.
Operating income from equipment operations plunged 39% year over year to $828 million due to the impact of lower shipment volumes, a less favorable product mix and unfavorable effects of foreign-currency exchange, partially offset by lower selling, administrative and general expenses and price realization.
Segment Performance
The Agriculture & Turf segment sales decreased 25% year over year to $5.8 billion due to lower shipment volumes and unfavorable effects of currency translation, partly offset by price realization. Operating profit of the segment slumped 48% year over year to $639 million as lower shipment volumes and less favorable product mix were partially offset by reduced selling, administrative and general expenses and price realization.
Construction & Forestry sales went up 2% year over year to $1.63 billion aided by higher shipment volumes and price realization. Operating profit in the segment surged 43% year over year to $189 million, driven by price realization and lower selling, administrative and general expenses, partially offset by negative impact of foreign currency exchange.
Net revenues at Deere's Financial Services operations were $653 million in the reported quarter, up 14% year over year. The segment's operating profit was $265 million, compared with $229 million in the prior-year quarter.
Net income in this segment was $169.8 million compared with $147.7 million in the year-ago quarter. The improvement stemmed from gain on the previously announced sale of the crop insurance business, partially offset by less favorable financing spreads.
Financials
Deere reported cash and cash equivalents of $4.36 billion at the end of second-quarter fiscal 2015 versus $3.08 billion in the previous quarter. The company generated $154.7 million in cash from operating activities for the period of six months ended Apr 30, 2015 compared with $831.9 million in the prior-year comparable period. As of the second-quarter end, long-term borrowings were $23.6 billion, compared with $23.2 billion in the second quarter of 2014.
On Mar 31, 2015, Deere divested its crop insurance unit to West Des Moines, IA-based Farmers Mutual Hail Insurance Company (FMH), as agreed upon in Dec 2014. The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the business unit. Deere will continue to design, manufacture and offer technology, equipment and services in its precision agriculture offerings.
Looking Ahead
Deere expects equipment sales to decrease around 19% year over year in fiscal 2015. For the third quarter of 2015, the company projected a 17% decline in sales compared with the year-ago period. Deere estimates its net income to be $1.9 billion for fiscal 2015, up from its previous guidance of $1.8 billion. In spite of continued weakness in the global agricultural sector, Deere hopes to remain solidly profitable in 2015.
Segment-wise, Deere estimates Agriculture and Turf equipment sales to decline 24% in fiscal 2015 due to lower commodity prices and falling farm incomes, which in turn will have a negative impact on agricultural machinery demand.
Region-wise, industry farm machinery sales in the U.S. and Canada are expected to be down 25% for 2015. In Europe, sales are projected to be decline 10% due to lower commodity prices and farm income as well as potential pressure on the dairy sector. In South America, industry sales of tractors and combines are expected to decline by 15% to 20% year over year due to economic uncertainty in Brazil and higher interest rates on government-sponsored financing.
Sales in the Commonwealth of Independent States are expected to deteriorate further, in part due to tight credit conditions and economic pressure. Sales in Asia are projected to be down slightly, with most of the decline centered in China and India. Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, benefiting from general economic growth.
The company foresees global sales for Construction & Forestry equipment to advance about 2% in 2015. The gain reflects further economic recovery and higher housing starts in the U.S. However, weakening conditions in the energy sector and energy-producing regions will continue to be a deterring factor. Global forestry sales are expected to hold steady with 2014 levels. Net income from Financial Services is estimated at around $630 million for the full year.
Our View
Agricultural equipment sales are expected to be lower due to weak farm income. Recently, USDA (U.S. Department of Agriculture) released its forecast for U.S. farm income in 2015, which stands at $73.6 billion, the lowest since 2009 and a 32% drop from 2014. This is mainly because of falling crop prices such as corn and soybean, which will affect farm income. This will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere. However, Deere will benefit from the improvement in nonresidential construction sector as well as its cost cutting initiatives.
Given 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. Meanwhile, Deere's plans to serve a larger global customer base are making progress, which will drive growth.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada via branch offices as well as distributors and operates through dealers to resell products internationally.
At present, Deere has a Zacks Rank #4 (Sell).
Stocks to consider in the construction sector are Albany International Corp. AIN , Allegion plc Ordinary Shares ALLE and AO Smith Corp. AOS . All of 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
DEERE & CO (DE): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis Report
ALBANY INTL A (AIN): 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.
|
Deere & Company' s DE second-quarter fiscal 2015 earnings declined around 23% year-over-year to $2.03 per share owing to slowdown in global farm economy. In Europe, sales are projected to be decline 10% due to lower commodity prices and farm income as well as potential pressure on the dairy sector. Earnings, however, beat the Zacks Consensus Estimate of $1.57, delivering an earnings surprise of 29%.
|
Segment Performance The Agriculture & Turf segment sales decreased 25% year over year to $5.8 billion due to lower shipment volumes and unfavorable effects of currency translation, partly offset by price realization. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ALBANY INTL A (AIN): Free Stock Analysis Report ALLEGION PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company' s DE second-quarter fiscal 2015 earnings declined around 23% year-over-year to $2.03 per share owing to slowdown in global farm economy.
|
Deere & Company - Earnings Surprise | FindTheCompany Operational Update Deere's worldwide total sales dipped 18% year over year to $8.12 billion. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ALBANY INTL A (AIN): Free Stock Analysis Report ALLEGION PLC (ALLE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company' s DE second-quarter fiscal 2015 earnings declined around 23% year-over-year to $2.03 per share owing to slowdown in global farm economy.
|
Net revenues at Deere's Financial Services operations were $653 million in the reported quarter, up 14% year over year. Looking Ahead Deere expects equipment sales to decrease around 19% year over year in fiscal 2015. Deere & Company' s DE second-quarter fiscal 2015 earnings declined around 23% year-over-year to $2.03 per share owing to slowdown in global farm economy.
|
84157c89-481c-444f-b9df-7e6862cfc981
|
722798.0
|
2015-05-22 00:00:00 UTC
|
Quiet Markets Ahead of Weekend - Ahead of Wall Street
|
DE
|
https://www.nasdaq.com/articles/quiet-markets-ahead-weekend-ahead-wall-street-2015-05-22
|
nan
|
nan
|
Friday, May 22, 2015
Stocks haven't done much in the last couple of sessions, and today will likely be no different. The Fed Chairwoman's speech later this afternoon could be a market-mover, but I will be looking for a quiet session today ahead of the Memorial Day weekend.
The Fed has spent most of the past year in priming investors for the start of its tightening policy. All of this 'preparation' shows that the Fed wants to start the policy-unwind process, but the members want to make sure that the tightening process doesn't choke the recovery or spook the markets.
With the U.S. economy barely staying in positive territory in Q1, the Fed has effectively taken the June meeting off the table in starting the rate-hike process. This is the consensus takeaway from the minutes of the last FOMC meeting that came out this Wednesday. September is the next most likely date. But even that will be dependent on how the economy's trajectory turns out in the coming months. The data thus far for the current period has at best been mixed, with a hoped-for spring bounce-back remaining elusive thus far.
One can reasonably say that even September is no more than a toss-up if the current trend of one-step-forward-two-steps-back continues in the economic data. The impact of the earlier rise in the dollar's exchange value on the export sector and the loss of investments in the energy sector in response to lower oil prices likely was more lasting than initially anticipated.
On top of this, inflation isn't a worry at this stage at all, despite the steady drop in the unemployment rate, as this morning's April CPI numbers show. Bottom line, the Fed will not start the tightening cycle if the economy continues to perform under its potential rate. The issue that isn't clear at this stage is whether the Fed needs a 3%-plus GDP economy for its first rate hike or it will be fine with a moderate growth trajectory of 2-handle growth pace.
On the earnings front, we have effectively moved past the Q1 reporting cycle now, though some reports are still trickling in - we got the Hewlett-Packard ( HPQ ) report last evening while Deere & Company ( DE ) reported this morning. The Q1 Scorecard now shows reports from 487 S&P 500 members. Total earnings for these index members are up +2.1% on -3.4% lower revenues, with 65.2% beating EPS estimates and only 44.4% coming ahead of top-line expectations.
Regular readers know that we have been calling the Q1 earnings performance in Q1 as sub-par and weak. The picture isn't shaping up to be any better for the current period either, with Q2 estimates still coming down. Total earnings for the S&P 500 index are expected to be down -6.7%, which is down from the +1.1% growth that was expected in early January.
Sheraz Mian
Director of Research
Note: In order to get an email alert each time this author publishes a new article, click on the 'Follow Author' link at the bottom of the top-right box of links.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On top of this, inflation isn't a worry at this stage at all, despite the steady drop in the unemployment rate, as this morning's April CPI numbers show. Total earnings for these index members are up +2.1% on -3.4% lower revenues, with 65.2% beating EPS estimates and only 44.4% coming ahead of top-line expectations. But even that will be dependent on how the economy's trajectory turns out in the coming months.
|
Click to get this free report HEWLETT PACKARD (HPQ): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. But even that will be dependent on how the economy's trajectory turns out in the coming months. On top of this, inflation isn't a worry at this stage at all, despite the steady drop in the unemployment rate, as this morning's April CPI numbers show.
|
On the earnings front, we have effectively moved past the Q1 reporting cycle now, though some reports are still trickling in - we got the Hewlett-Packard ( HPQ ) report last evening while Deere & Company ( DE ) reported this morning. Click to get this free report HEWLETT PACKARD (HPQ): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. But even that will be dependent on how the economy's trajectory turns out in the coming months.
|
Bottom line, the Fed will not start the tightening cycle if the economy continues to perform under its potential rate. The issue that isn't clear at this stage is whether the Fed needs a 3%-plus GDP economy for its first rate hike or it will be fine with a moderate growth trajectory of 2-handle growth pace. But even that will be dependent on how the economy's trajectory turns out in the coming months.
|
4905dbfd-e483-412e-84e6-3ff2249cb63a
|
722799.0
|
2015-05-22 00:00:00 UTC
|
U.S. Stock Futures Surrender Slight Gains on Above-Consensus Increase in Core CPI
|
DE
|
https://www.nasdaq.com/articles/us-stock-futures-surrender-slight-gains-above-consensus-increase-core-cpi-2015-05-22
|
nan
|
nan
|
U.S. stock futures slipped into negative territory Friday morning as an above-consensus 0.3% gain in the core consumer-price index was seen as giving the Federal Reserve more ammunition to raise interest rates in September.
The nominal index was only 0.1% higher in April, matching Wall Street expectations.
Ahead of Friday's single economic data point, stock futures had been cautiously higher, buoyed by firm overseas markets and expectations for global central banks to remain accommodative. Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the firmer tone before equities surrendered their minimal gains after the CPI data.
Wall Street is expected to tread water ahead of Fed Chair Janet Yellen's speech in Rhode Island later this afternoon. Investors will be trying to glean any clues as to whether the Fed remains on course for a rate incrase this year, and how the recent action in the bond market could influence monetary policy.
-Dow Jones Industrial down 0.1%
-S&P 500 futures down 0.2%
-Nasdaq 100 futures down 0.04%
SENTIMENT
Nikkei up 0.3%
Hang Seng up 1.7%
Shanghai Composite up 2.8%
FTSE-100 up 0.5%
DAX-30 down 0.6%
PRE-MARKET SECTOR WATCH
(+/-) Large cap tech: Mixed
(+) Chip stocks: Higher
(+/-) Software stocks: Mixed
(+/-) Hardware stocks: Mixed
(+/-) Internet stocks: Mixed
(-) Drug stocks: Lower
(-) Financial stocks: Lower
(-) Retail stocks: Lower
(+/-) Industrial stocks: Mixed
(+) Airlines: Higher
(-) Autos Lower
UPSIDE MOVERS:
(+) LONG (+35.01%) Ctrip.com ( CTRP ) acquired 37.6% stake
(+) EROC (+15.92%) To be acquired by Vanguard for $464 mln plus debt
(+) SGYP (+6.53%) Canaccord initiated coverage with buy rating and $11 PT
DOWNSIDE MOVERS:
(-) ARO (-15.06%) Reported wider-than-expected Q1 loss, revenue drops 20%
(-) OTIC (-14.65%) Downgraded to neutral at JPMorgan, PT cut $12 to $30
(-) VGGL (-14.24%) Priced its underwritten public offering of 3.6 mln shares at $2.50 per share
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.
|
U.S. stock futures slipped into negative territory Friday morning as an above-consensus 0.3% gain in the core consumer-price index was seen as giving the Federal Reserve more ammunition to raise interest rates in September. Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the firmer tone before equities surrendered their minimal gains after the CPI data. The nominal index was only 0.1% higher in April, matching Wall Street expectations.
|
(-) ARO (-15.06%) Reported wider-than-expected Q1 loss, revenue drops 20% (-) OTIC (-14.65%) Downgraded to neutral at JPMorgan, PT cut $12 to $30 (-) VGGL (-14.24%) Priced its underwritten public offering of 3.6 mln shares at $2.50 per share The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. U.S. stock futures slipped into negative territory Friday morning as an above-consensus 0.3% gain in the core consumer-price index was seen as giving the Federal Reserve more ammunition to raise interest rates in September. The nominal index was only 0.1% higher in April, matching Wall Street expectations.
|
(-) ARO (-15.06%) Reported wider-than-expected Q1 loss, revenue drops 20% (-) OTIC (-14.65%) Downgraded to neutral at JPMorgan, PT cut $12 to $30 (-) VGGL (-14.24%) Priced its underwritten public offering of 3.6 mln shares at $2.50 per share The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. U.S. stock futures slipped into negative territory Friday morning as an above-consensus 0.3% gain in the core consumer-price index was seen as giving the Federal Reserve more ammunition to raise interest rates in September. The nominal index was only 0.1% higher in April, matching Wall Street expectations.
|
U.S. stock futures slipped into negative territory Friday morning as an above-consensus 0.3% gain in the core consumer-price index was seen as giving the Federal Reserve more ammunition to raise interest rates in September. The nominal index was only 0.1% higher in April, matching Wall Street expectations. Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the firmer tone before equities surrendered their minimal gains after the CPI data.
|
835985fe-0569-47c0-9720-d1739899a3c8
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.