Fundstrat’s Thomas Lee argues that investors need to add value and low quality stocks like Ford Motor (F), Marathon Oil (MRO), Mosaic (MOS), and First Solar (FSLR) to their portfolios to take advantage of rising oil prices, a cheaper dollar and a rebound in high yield. He explains why:
Agence France-Presse/Getty ImagesThe dilemma: ��hope�� for a catch-up in momentum and quality or put on the ��correlation trade�� and buy Value and Low-quality. The improvement in equity markets since mid-February have coincided with better economic data and an improvement in the three biggies: high-yield, oil and USD. There is not universal agreement that anything has improved��in fact, a significant number of clients believe the business expansion has ended and the global economy is slipping into recession. A few even noted several strategists/economists visiting Boston last week argued the same. But if the three biggies are turning, investors need to focus on correlation trades, as fundamentals will soon reflect these improvements but with a significant lag.
Top 10 Cheap Stocks To Watch Right Now: Kohl's Corporation(KSS)
Advisors' Opinion:- [By Paul Ausick]
Rounding out the top 10 in terms of total installed solar PV capacity are Prologis Inc. (NYSE: PLD) with 108 MWs of installed capacity, Apple Inc.(NASDAQ: AAPL with 94 MWs, Costco Wholesale Corp. (NASDAQ: COST) with 51 MWs, Kohl’s Corp. (NYSE: KSS) with 50 MWs, IKEA with 44 MWs, Macy’s Incl. (NYSE: M) with 39 MWs, General Growth Properties Inc. (NYSE: GGP) with 30 MWs, and tied with 23 MWs, Hartz Mountain and Bed, Bath and Beyond Inc. (NASDAQ: BBBY).
- [By Paul Ausick]
BFAds.net also pulled out some specific deals on offer for Cyber Monday:
Target Inc. (NYSE: TGT): 15% off nearly everything online and in stores on both Sunday and Monday Kohl’s Corp. (NYSE: KSS): 20% off in-store and online from Nov. 27-30 with code DEALSEEKER Macy’s Inc. (NYSE: M): $50 off Samsung Gear S3 and Gear S2 Smart Watches Wal-Mart: Samsung HDTVs over 50% off MSRP Amazon: Amazon Echo for $139.99, a savings of $40Most online retailers will have Cyber Monday deals. Some, including Best Buy Co. Inc. (NYSE: BBY), are promoting the deals generally without preview promotion. Its�Cyber Monday deals will begin on Sunday and many of them will also be available in brick-and-mortar stores.
- [By Ben Levisohn]
There’s been a lot of hand wringing about the dismal performance of department stores like Kohl’s (KSS), Macy’s (M), TJX Cos. (TJX), and Sears Holdings (SHLD) and what it says about the state of consumer spending. Yardeni Research’s Ed Yardeni argues that U.S. consumers are shopping, but that “Amazon (AMZN) is taking all the fun, and some of the profits, out of retailing…” He explains:
- [By Ben Levisohn]
Cituigroup’s Kate McShane and Corinna Van der Ghinst explain why they’re still bullish on Under Armour (UA) despite fears that its deal with Kohl’s (KSS) could result in slower growth:
Top 10 Cheap Stocks To Watch Right Now: Wendy's/Arby's Group Inc.(WEN)
Advisors' Opinion:- [By Ben Levisohn]
Upgrades had a big impact on stocks today. Wendy’s (WEN), for instance, gained 4.5% to $8.62 after being upgraded to Buy at Argus, while Cash America (CSH) advanced 3.7% to $44.32 after being upgraded to Market Outperform from Market Perform at JMP Securities. Walgreen (WAG) proved the big winner in the S&P 500 after�Goldman Sachs called the stock a Conviction Buy.
- [By Monica Gerson]
Analysts expect Wendys Co (NASDAQ: WEN) to report its quarterly earnings at $0.06 per share on revenue of $352.08 million. Wendys shares rose 1.79 percent to $11.38 in after-hours trading.
- [By Michael Flannelly]
KeyBanc analysts upgraded fast food restaurant operator The Wendy’s Co (WEN) on Friday, noting that the company has a number of positive developments that could provide a floor for the stock.
The analysts upgraded WEN from “Underweight” to “Hold.”
KeyBanc analyst Christopher O’Cull said, “We are raising our rating for The Wendy’s Company to HOLD as we believe: 1) Wendy’s SRS performance will diverge from the industry for the foreseeable future as new products are supported by more effective use of marketing dollars; 2) better menu and promotional management will lead to improved franchisee profitability (a focus of the new CFO Todd Penegor); and 3) the opportunity to extend the re-franchising program will provide a floor on the stock.”
Wendy’s shares were up 7 cents, or 0.81%, during pre-market trading on Friday. The stock is up 57.01% year-to-date.
- [By Jim Jubak, Senior Markets Editor, MoneyShow.com]
It's hard for any company to raise prices in the current non-inflationary environment. But it's especially hard right now for operators of fast food restaurants, given the intense price competition in a very crowded marketplace. McDonald's sales growth in recent quarters has been driven by the success of its Dollar Menu, so raising prices in that segment are a big deal for the company. In addition, pushback from franchisees who say they can't afford to refurbish their stores, given higher charges from McDonald's hits at one of McDonald's key advantages in its market—it's ability to refresh stores more frequently than competitors. A McDonald's refresh at $600,000 on average, according to the company, costs substantially more than a remodel at Burger King (BKW) at $300,000 or Wendy's (WEN) at $375,000 for the least expensive version. McDonald's restaurants average $2.5 million in annual sales.
- [By Michael Flannelly]
Argus Research upgraded fast food restaurant operator The Wendy’s Co (WEN) on Thursday, noting that the company’s store remodeling and new menus should help drive higher sales.
The analysts upgraded WEN from “Hold” to “Buy” and see shares reaching $10. This price target suggests a 21% upside to the stock’s Wednesday closing price of $8.25.
Wendy’s shares were up 24 cents, or 2.91%, during early morning trading on Thursday. The stock is up 54.19% year-to-date.
- [By Monica Gerson]
Wendys Co (NASDAQ: WEN) is expected to report its quarterly earnings at $0.06 per share on revenue of $352.08 million.
Canadian Solar Inc. (NASDAQ: CSIQ) is estimated to report its quarterly earnings at $0.14 per share on revenue of $663.74 million.
Top 10 Cheap Stocks To Watch Right Now: S&P GSCI(GD)
Advisors' Opinion:- [By WWW.KIPLINGER.COM]
It��s this kind of environment that has made the iShares U.S. Aerospace & Defense ETF(ITA) one of the best-performing ETFs over the past decade. Companies like Lockheed Martin Corporation (LMT) and General Dynamics Corporation (GD) have thrived by producing solutions funded by a thick military wallet.
- [By Ben Levisohn]
Deutsche Bank’s Myles Walton and Louis Raffetto explain why the cut General Dynamics (GD) to Hold from Buy:
[Gulfstream] G650 inventory and price trends quickly becoming a problem: With the bizjet malaise & the unique contribution that the G650 has to General Dynamics, we��ve kept a particular eye on that product as downside risk. Over the last five months, we��ve seen the available for sale G650s move from 9 to 22 currently (vs. 4 in Mar ��15). Additionally, the continued downward asking price will start to impede on new G650 orders��if not cancellation activity (average ask ~$66M with negotiating flexibility of about $5M). With realized prices for new aircraft at $67M, we haven��t seen much cancellation activity and perhaps won��t given sizable customer deposits; however, the inventory climb implies OEM production may be 20-30% above actual demand over the medium-term…
We remain positive on�General Dynamics’ defense biz (60% of ’16E seg EBIT) & while we’ve historically seen Gulfstream as a plus despite softening bizjet trends, the alarming G650 available-for-sale trends in the last few months has moved our opinion. While risks related to the G450/550 transition to the G500/600 are well known, it is the G650 that drives 2/3rds of the unit’s profit and with 2-3 G650/mo hitting the market for every 5/mo delivered, we struggle with sustainability and accordingly lower our�General Dynamics EPS estimates 5% and 10% for 2017 & 2018, respectively. Downgrade to Hold on preference for select peers.
Of the 21 stocks Walton covers, he Buy ratings on eight, including Boeing (BA), Northrop Grumman (NOC), and Rockwell Collins (COL).
Shares of General Dynamics have dropped 4% to $129 at 2:34 p.m. today, while Boeing has fallen 1.1% to $131.43, Northrop Grumman has declined 0.6% to $193.89, and Rockwell Collins has 0.9% $90.83.
- [By Chad Tracy]
Let's take a look at three stocks in the aerospace and defense sector that look more attractive at today's prices.
General Dynamics (NYSE: GD) General Dynamics is currently trading around $86 per share, which is close to its 52-week high of $87.85. Yet earnings support this valuation, and the company's forward price-to-earnings (P/E) ratio is only 11, compared with an industry average of 18. The current price to book value is 2.5. The company also carries very little debt, with a debt-to-equity ratio of 0.3.General Dynamics generates huge revenue through its contracts with the U.S. government. Its marine systems division owns three of the six submarine shipyards in the U.S. Long-term contracts with the U.S. government are estimated to be worth $78 billion for attack submarines and $140 billion for ballistic missile submarines.
Top 10 Cheap Stocks To Watch Right Now: Compass Minerals Intl Inc(CMP)
Advisors' Opinion:- [By Monica Gerson]
Compass Minerals International, Inc. (NYSE: CMP) is projected to post its quarterly earnings at $1.33 per share on revenue of $347.03 million.
MKS Instruments, Inc. (NASDAQ: MKSI) is estimated to post its quarterly earnings at $0.33 per share on revenue of $177.19 million.
Top 10 Cheap Stocks To Watch Right Now: S&P Smallcap 600(PH)
Advisors' Opinion:- [By Charles Mizrahi, President and CEO, Hampton Investors, Inc.]
Parker Hannifin (PH) generates strong revenue from its aerospace division, while its primary industrial segment is lagging.
Overall, we like the company's balanced portfolio. PH had solid order rates this past year with backlog of $3.6 billion between its industrial and aerospace segments.
Top 10 Cheap Stocks To Watch Right Now: UnitedHealth Group Incorporated(UNH)
Advisors' Opinion:- [By Ben Levisohn]
How good were UnitedHealth Group’s (UNH) earnings today? So good its stock has jumped the most in more than six years–and lifted competitors like Humana (HUM), Cigna (CI), Aetna (AET), and Anthem (ANTM) as well. Leerink’s Ana Gupte explains why the market is in love with UnitedHealth’s earnings:
John Murphy riding for UnitedHealthcare celebrates after winning stage seven of the 2015 USA Pro Challenge on August 23, 2015 Getty ImagesUnitedHealth�reported a solid 3Q setting off the Managed Care earnings season on a high note. The company posted a healthy 9 c EPS beat at $2.17 and modest revenue beat while raising FY16 EPS guidance by 13 c to ~$8.00. The beat was driven by an 80 bps beat on Consolidated Medical Loss Ratio and a lower effective tax rate offset by 50 bps worse SGA ratio as the company invests for future growth. Consolidated MLR of 80.3% was better than consensus by 80 bps. Importantly, the quality of the quarter as measured by reserve strength and cash flows was excellent with an improvement in DCP of 52 Days by 2 days YoY and QoQ by 1 day, while Adj. CFO of $3.2 B offered CFO to NI ratio of 1.7x. Optum shone in all three segments of Optum Rx, Optum Health & Optum Insight with top line growth of 9% and margin expansion to 6.9% in 3Q. Balance Sheet deleveraging continues with a reduction in Debt to Cap by 2% to 46.9%. Shareholder dividends have grown by 25% YoY with continued share repurchase despite the deleveraging efforts post CTRX. The unparalleled strength of the platform was effectively highlighted by the stellar performance and we have even greater conviction in our top pick status on this name.
Shares of UnitedHealth Group have jumped 7.1% to $$143.71 at 3:13 p.m. today, which would be the largest one-day move since the stock gained 8.1% on April 21, 2011. Humana has gained 2.4% to $173.90, Cigna has climbed 4.5% to $124.00, Aetna has risen 2.8% to $111.55, and Anthem has rallied 4.5% to $123.62.<
- [By Javier Hasse]
The Dow Jones Industrial Average gained 0.24 percent. Among the largest gainers were Goldman Sachs Group Inc (NYSE: GS) and UnitedHealth Group Inc (NYSE: UNH).
- [By Paul Ausick]
The DJIA stock posting the largest daily percentage gain ahead of the close Tuesday was UnitedHealth Group Inc. (NYSE: UNH) which traded up 3.44% at $157.35. The stock’s 52-week range is $107.51 to $158.12, and the high was posted this morning. Trading volume was about 15% above the daily average of around 3.7 million. The healthcare giant’s 2017 forecast was better than expected today.
- [By Javier Hasse] Related AAPL 6 High-Quality Tech Stocks To Buy On The Dip Dr. Dre TV Show 'Vital Signs' Coming To Apple Review Of PostCapitalism By Paul Mason And The Winning Of The Carbon War By Jeremy Leggett (Seeking Alpha) Related WMT Your Recession Playbook: Avoid These Stocks, Buy Ross Stores Wal-Mart's Troubles Extend Beyond Brazil: Beware The U.K. Plug Power: Home Depot Gains Anchor Traction As Plans For A Second DC Emerge (Seeking Alpha) The Dow Jones Industrial Average(INDEXDJX:.DJI) tracks the performance of 30 major U.S. companies, from Apple Inc. (NASDAQ: AAPL) and American Express Company (NYSE: AXP) to UnitedHealth Group Inc (NYSE: UNH) and Wal-Mart Stores, Inc. (NYSE: WMT). The index has lost more than 8.5 percent since the beginning of the year. But, is there a way to capitalize from future declines or surges? Well, there always are binary options.
2016 has been quite volatile for the Dow. So, a few questions arise. Where will the index go next? Will it continue to surge? Or, will it fall once again? And, is there a way to bet on its performance over the short term without being exposed to high risks and collateral?
- [By David Zeiler]
Of the three classes of healthcare stocks, the insurers reflected this uncertainty the most the day after the election. Aetna Inc. (NYSE: AET) was up almost 5%, while UnitedHealth Group Inc. (NYSE: UNH) fell a bit under 1%, and Molina Healthcare Inc. (NYSE: MOH) plunged almost 16%.
Top 10 Cheap Stocks To Watch Right Now: Emerson Electric Company(EMR)
Advisors' Opinion:- [By Ben Levisohn]
Industrial companies like Dover (DOV), Emerson Electric (EMR), Eaton (ETN), 3M (MMM) and Rockwell Automation (ROK) are calling for earnings growth to get better during the second half of the year. Bernstein’s Steven Winoker and team aren’t feeling as confident:
- [By Ben Levisohn]
Lower WACC has moved in lockstep with higher multiples and as the rate regime shifts, we see limited excuses for another leg absent material growth. EPS growth/visibility at a reasonable price will matter, with those that are not reflecting upside today seeing multiple expansion and safety stocks that are not safe reverting. With this backdrop, our top picks are Honeywell, Ingersoll-Rand, and Danaher, with a positive bias on Neutral-rated United Technologies, while we are most negative on�General Electric and Rockwell Automation (ROK), with a negative bias on N-rated $51.92 Emerson Electric (EMR)…
- [By Ben Levisohn]
Bernstein’s Steven Winoker and team contend that Brexit is “bad for all our companies �� it is just a matter of degree.”� They explain why Tyco International (TYC), Idex (IEX), Danaher (DHR),�Honeywell International (HON) and Emerson Electric (EMR) could feel some degree of pain:
- [By Ben Levisohn]
3) Other downside catalysts have come and gone, such as�Emerson Electric (EMR) effectively ruling out a�Rockwell deal;
4) However, our view that the upward trajectory in customer capex spending remains muted combined with the stock still trading at >19x NTM EPS limits our upgrade to just Market-Perform despite our long-term bullish view of industrial automation in general and Rockwell specifically
Top 10 Cheap Stocks To Watch Right Now: Rent-A-Center Inc.(RCII)
Advisors' Opinion:- [By Lisa Levin]
Rent-A-Center Inc (NASDAQ: RCII) was down, falling around 26 percent to $9.88. Rent-A-Center reported upbeat quarterly earnings, but the company's sales missed analysts' estimates.
Top 10 Cheap Stocks To Watch Right Now: Sirius XM Radio Inc.(SIRI)
Advisors' Opinion:- [By Javier Hasse]
As stated above, the market strength led to net selling of some big companies, including Alibaba Group Holding Ltd (NYSE: BABA) and Intel Corporation (NASDAQ: INTC), which rebounded in July. Similar was the situation for Costco Wholesale Corporation (NASDAQ: COST), Sirius XM Holdings Inc. (NASDAQ: SIRI) and General Electric Company (NYSE: GE).
Top 10 Cheap Stocks To Watch Right Now: International Business Machines Corporation(IBM)
Advisors' Opinion:- [By Jack Foley on] International Business Machines (NYSE:IBM)�third quarter results illustrated that the company is finally getting close to revenue growth, which speaks volumes about the growth in its 'strategic imperatives' division. Nevertheless, growth in the segment (which now makes up 40% of revenues) has come at a cost and this is something Wall Street is noticing. IBM stock looks more and more like an all or nothing play on Watson. Here's why betting on IBM can be risky, but worth considering.
- [By Beth Piskora]
They are listed below:
Altera (ALTR)��yielding 1.7%
Apple (AAPL)��yielding 2.5%
Applied Materials (AMAT)��yielding 2.6%
Cisco (CSCO)��yielding 2.9%
EMC Corp. (EMC)��yielding 1.5%
International Business Machines (IBM)��yielding 2.0%
KLA-Tencor (KLAC)��yielding 3.2%
Microchip Technology (MCHP)��yielding 3.6%
Oracle (ORCL)��yielding 1.5%
Qualcomm (QCOM)��yielding 2.1%
Texas Instruments (TXN)��yielding 2.9%
Xilinx (XLNX)��yielding 2.3%
Subscribe to S&P's The Outlook here��
- [By Jack Foley]
International Business Machines (NYSE:IBM) third quarter results illustrated that the company is finally getting close to revenue growth, which speaks volumes about the growth in its 'strategic imperatives' division. Nevertheless, growth in the segment (which now makes up 40% of revenues) has come at a cost and this is something Wall Street is noticing. IBM stock looks more and more like an all or nothing play on Watson.
- [By Jared Cummans]
IBM (IBM) announced today that it has closed a deal with SYNNEX to sell its customer care outsourcing services segment.
The deal was struck for a total of $505 million with roughly $430 million of that figure coming from cash. The deal also mandated that SYNNEX enter a multi-year agreement with IBM as partners for global customer care and outsourcing services.
SYNNEX, a Fortune 500 firm, is known for its IT supply chain services. The California-based firm trades under the ticker SNX and has seen its stock price soar approximately 60% since the middle of April.
IBM shares were up $1.62, or 0.87%, at Tuesday’s close. The stock is down just over 2% in 2013.
- [By Jared Cummans]
