Tuesday, April 26, 2016

Wells Fargo Earnings Review

In a week when coal miner Peabody Energy filed for bankruptcy and rival bank JPMorgan Chase & Co. increased its provision for credit losses by 46% largely because of pressure on its energy, metals and mining clients, investors' focus was naturally on Wells Fargo's energy portfolio. Let's take a look at how credit loss provisions hit income at Wells Fargo, and the other key takeaways from the first-quarter report.

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Alcoa's Management Gives its Outlook

Earnings season has kicked off, and Alcoa's  results are already in. The aluminum and alumina producer's earnings are useful for their predictive qualities, so let's take a closer look at the company's end market guidance. Which sectors of the industrial economy are trending better, or worse, and why?
Alcoa
Aerospace and automotive are two key markets for Alcoa. Image source: Alcoa.

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General Electric's Most Important Product

Power matters to General Electric Company . In fact, the segment is the company's largest industrial business, contributing 25% of industrial segmental profit in 2015. Within the power segment, gas turbines -- traditionally the company's most important product -- are a key part of its future prospects. But what can investors expect in the next five to 10 years from end demand from bulk power spending, and how is General Electric Company positioned in this market?
Ge


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Emerson Electric or Rockwell Automation Stock?

Emerson Electric and Rockwell Automation have both outperformed the S&P 500 year to date. As with Cognex Corp. , both companies have substantive exposure to industrial automation. It's somewhat surprising to see such share price outperformance during a period of weak economic growth, but clearly, the market is pricing in a second-half recovery. The question is, which stock is a better buy now?
EMR Chart
EMR data by YCharts


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CSX and Union Pacific Earnings Preview

CSX Corp. (NASDAQ:CSX) will present its first-quarter results in mid-April, followed by fellow railroad company Union Pacific Corporation (NYSE:UNP) a week later. Both sets of results are eagerly anticipated, not least because the transportation sector is viewed as a leading economic indicator. While the reports will likely have lots of useful data points, investors should keep an eye on one key metric when both companies give results -- a piece of information that could indicate the start of a recovery in industrial conditions.

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Wednesday, April 13, 2016

Is 3M Company Stock a Buy?

On Tuesday, 3M Company (NYSE: MMM) reaffirmed its 2016 outlook and gave investors its five-year outlook. Following this announcement, the big question investors need to ask is this: How exactly are these companies supposed to generate strong earnings growth in a moderate economic environment? It's a particularly pertinent question, because 3M Company's new guidance calls for 8% to 11% annualized EPS growth from 2016 through 2020. Let's take a look at the company's new guidance and whether it makes the stock worth buying or not.

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MSC Industrial Direct. Co. Earnings Analysis

MSC Industrial Direct Co. Inc.'s second-quarter results were a mix of positives and negatives, and there is something in them for glass-half-full and -empty proponents. Its end markets aren't improving, but they aren't getting much worse. The company continues to execute well and maintain gross margin, but sales growth is disappointing. It was truly a mixed quarter, so let's take a closer look at the details and what to expect going forward.

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3 Industrial Internet of Things Stocks

In a world getting used to global growth rates at far lower levels than in previous decades, large industrial companies can't simply rely on revenue growth in order to increase earnings significantly. Something more is needed. One of those "somethings" is the Industrial Internet of Things (IIoT), and there are three early adopters set to win out. Let's take a closer look at them.

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Why Caterpillar Stock Can Rise Further

Almost every oil related stock got beaten up in 2015, but as you can see below, Caterpillar, Inc (NYSE:CAT) has bounced back strongly in recent weeks. Moreover, other industrial stocks with heavy energy exposure, such as Dover Corporation (NYSE:DOV) and Emerson Electric (NYSE:EMR), have followed suit. Can the rally continue? Let's take a look at three reasons why it can.

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Time to Buy Triumph Group, inc Stock?

Shareholders in Triump Group, Inc  have a tough decision on their hands today. To buy shares, or to sell them? There are reasons to cut and run. Revenue and profits for FY 2016 are now expected to come in at the bottom end of the company's own guidance. Moreoever, analysts expect revenue and profits to decline again in FY 2017 - not what any shareholder wants to see. Despite these issues, there maybe a case for value investors buying the stock, particularly as a turnaround could be on the cards. Let's take a closer look.

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Thursday, April 7, 2016

Amazon.Com Isn't Really a Threat to UPS and FedEx

First it was Amazon.com (NASDAQ:AMZN) drones that were set to destroy the businesses of FedEx Corporation (NYSE:FDX) and United Parcel Service, Inc (NYSE:UPS). Now it's the online retailer's expansion of its air-cargo network. It all sounds dramatic, but in reality Amazon's moves don't present a significant threat to the two mega-logistics players. Here are five reasons why.

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FedEx Corporation Gives Results, What it Means to United Parcel Service

The market gave a warm welcome to FedEx Corp.'s (NYSE:FDX) recent estimate-busting quarterly results, but does that imply that United Parcel Service (NYSE:UPS) is also set to deliver strong numbers when it reports next month? It's always interesting to compare the rivals -- not least because they report in the middle of each others' quarters -- so let's take a look at what FedEx's results imply about UPS' business trends.

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Dassault Systemes's Big Risk

3D software maker Dassault Systemes SA (NASDAQOTH: DASTY) is an unusual stock in many ways. It's European and reports in euros, so, unlike most companies U.S. investors are familiar with, the stronger U.S. dollar has been a boon to its earnings in the last year or so. Moreover, its fourth quarter of 2015 surprised on the upside in terms of revenue and earnings -- not an easy thing to do when economic growth is slowing. With all this positive news out there, what exactly is the problem with Dassault Systemes stock?

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5 Industrial Stocks With Minimal Oil & Gas Exposure

Falling oil prices have pressured industrial companies with significant exposure to the sector, and investors would have been best advised to steer clear of such companies in the past year. That said, not all industrial companies have significant energy exposure. For those looking to avoid energy here are five industrial names for you to look at.

Aerospace and construction
United Technologies
(NYSE: UTX) has negligible direct energy exposure. Its four segments consist of Pratt & Whitney (aircraft engines); Otis elevators; a climate, controls, and security (construction) business; and aerospace systems. You could argue that low oil prices might reduce demand for newer, more fuel-efficient aircraft, but Boeing and Airbus orders have held up well, and increased airline profitability is supportive of future aerospace growth.  
United Technologies' stock prospects are more tied to its ability to deliver on three key objectives in 2016:

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Monday, March 28, 2016

4 Stocks Flying in 2016

It's been a difficult first quarter for the industrial sector, with China's growth slowing, talk of an industrial recession in the U.S., and the European Central Bank cutting interest rates to stimulate Europe's economy. Yet somehow, industrial supply companies MSC Industrial Direct Co. (NYSE:MSM), Fastenal Company (NASDAQ:FAST), and W.W. Grainger Inc. (NYSE:GWW) are up an average 16% in 2016. What's going on, and can it continue?

KMT Chart
KMT data by YCharts.

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FedEx Corporation Stock is Flying, but Why?

Following a strong set of results from rival United Parcel Service, Inc and FedEx Corporation too reported standout results for the quarter that included the holiday season. Moreover, FedEx management emboldened investors by predicting earnings would come in toward the high end of its full-year guidance range amid impressive margin improvement in its key express segment. Let's take a closer look at the numbers and what they mean.

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Wednesday, March 23, 2016

3 Reasons Triumph Group, Inc Stock Could Fall

Being a Boeing Company (NYSE:BA) supplier is an uncertain business. Just ask Triumph Group, Inc. (NYSE:TGI). While Boeing has notably outperformed the S&P 500 in the past five years -- driven on by burgeoning aircraft demand -- Triumph Group has languished because of overexposure to disappointing programs. Moreover, the company faces ongoing challenges in 2016. Let's take a look at three of them before you decide to invest any money in the stock.
TGI Chart
TGI data by YCharts.

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Union Pacific Stock Set for Recovery?

After a fearful battering in 2015, North American railroad companies have massively outperformed recently. In a sense, it's a classic "risk-on" trade as investors pile into the riskier stocks, but it could also be the market pricing in the beginning of a cyclical recovery. Let's take a closer look at Union Pacific  to see if there is anything to the latter idea.

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Sunday, March 20, 2016

AgroFresh Earnings Review

The latest fourth-quarter results from produce freshness company AgroFresh Solutions Inc.  didn't produce the kind of violent move created by the third-quarter results presentation, but they were no less dramatic for other reasons.

Following a disappointing opening to life as a listed company, AgroFresh's fourth-quarter results were in line with internal guidance. It also announced, however, the departure of CEO Thomas Macphee, while President Stan Howell will step down at the end of April. Who knew keeping apples fresh could cause so much drama?

AGFS Chart
AGFS data by YCharts.

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Joy Global Reports Earnings, Caterpillar Investors Take Note

When a competitor's stock jumps 40% in a week, it's usually time to start looking at what's going on. Caterpillar's (NYSE:CAT) end markets include mining machinery, and Joy Global's (NYSE:JOY) recent surge must have had investors thinking Caterpillar could follow suit in due course. So let's take a look Joy Global's results and what they mean to the investment thesis for Caterpillar stock.
JOY Chart
JOY data by YCharts.

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