Wednesday, July 20, 2016

FedEx Corporation Earnings Article

FedEx Corporation and United Parcel Service, Inc have traditionally been seen as correlated plays on global growth. Both companies, however, are benefiting from specific business trends, such as e-commerce growth, which favor their abilities to decouple from the economy. Let's take a look at the tale of FedEx's fourth quarter to see what happened, and whether these trends are ongoing.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

FedEx Corporation Earnings Preview

FedEx Corporation's (NYSE:FDX) upcoming fourth-quarter results on Tuesday will be eagerly anticipated by investors looking to see if the favorable trends established in 2016 will continue. Like peer United Parcel Service, Inc (NYSE:UPS), FedEx has managed to overcome a slowing global economy and stay on track with its full-year earnings expectations. Can it continue? Let's focus on what to watch in FedEx's earnings report.
It's a good idea to look at these trends in the context of segmental earnings:

Fedex

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Wednesday, July 13, 2016

Stock Analysis: Cisco Systems or IBM

Tech bellwethers Cisco Systems, Inc. and International Business Machines Corporation have much in common. Both are superficially very cheap stocks, but as usual in such cases, significant questions exist over their strategic futures. What is the market afraid of, and are they worth buying on a risk/reward basis? Let's take a look.

Going cheap

Both stocks look cheap, with dividend yields of around 3.6% and free cash flow generation that suggests they could pay much more. In addition, if you look at enterprise value (market cap plus net debt) to free cash flow, the stocks are worth buying even if they only grow earnings in line with inflation.


READ THE FULL EQUITY RESEARCH ARTICLE LINKED


Dover Corp. Guidance Cut

Looking at the price chart of Dover Corp. (NYSE:DOV), you might think the company is having a pretty good year operationally in 2016. You would, however, be wrong. In fact, management took a knife to its full-year 2016 revenue and earnings guidance in the first quarter. No matter, the stock continued its gentle climb.
What's going on, and can the rally continue?

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Monday, July 11, 2016

George Soros Stock Picks

Like him or loathe him, George Soros is a highly successful investor, and looking at the stocks Soros Fund Management LLC is buying and selling is always useful. With that in mind, let's take a look at the worst-performing stocks held by the company in 2016. The idea is that they have the potential to bounce back strongly.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Is Union Pacific Corporation a Buy?

Despite tough end market conditions in 2016, it's been a pretty good year so far the railroad stocks. Union Pacific Corporation (NYSE:UNP) and CSX Corp (NASDAQ:CSX) are both up on the year, and with the recent uptick in manufacturing indicators and the price of oil, there's reason to believe better days are coming for the railroads. That said, is now the time to buy Union Pacific?

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Wednesday, June 29, 2016

Why Advance Auto Parts is a Buy

Auto parts retailer Advance Auto Parts Inc.  has serially disappointed investors in the last year, while peers such as AutoZone, Inc.  and O'Reilly Automotive Inc.  have powered ahead in terms of operational performance and stock price.

Advance Auto parts is having difficulty integrating an acquisition that was supposed to transform the company's fortunes. Meanwhile, senior management have left and company guidance has been slashed for 2016. Is it madness to consider buying the stock? I don't think so, and here's why.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Is Deere & Company Stock a Buy?

As Deere & Company's  fiscal year 2016 has progressed, its management has lowered full-year earnings and cash flow forecasts. Moreover, competitors such as Caterpillar Inc.  in construction machinery and AGCO Corporation  are both seeing weakening conditions. That said, all of the stocks mentioned are outperforming the S&P 500 on a year-to-date basis as I write.
What's going on with Deere in 2016, and does it's poor relative performance mean it's time to buy the stock?

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Honeywell International vs. United Technologies

United Technologies  and Honeywell International  are having a pretty good year so far. Both stocks have outperformed the S&P 500 as initial fears for an industrial recession have abated throughout the year. United Technologies is the cheaper stock, but both look like a good value based on their forward estimates.
Let's take a look at their presentations at the recent Electrical Products Group (EPG) conference, and what management said about their earnings prospects in 2016.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Friday, June 10, 2016

General Electric Company Investor Presentation

When analysts at a heavyweight investment bank issue an underweight rating on a stock, it's usually a good idea to re-examine the case for buying or holding the shares. As such, J.P. Morgan's negative call on General Electric Company caused no little angst among the stock's supporters. With this in mind, let's take a look at CEO Jeff Immelt's presentation at the recent Electrical Products Group (EPG) conference, and what it means to the stock's prospects.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Sunday, June 5, 2016

Cisco Systems Earnings Analysis

The headline numbers from Cisco Systems' third-quarter results, reported May 18, were good on a superficial basis, but let's take a closer look at the underlying themes and trends in order to better see what's going on. In truth, it's hard to argue that the earnings weren't a net positive, but there are some underlying concerns from the report.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

General Electric Earnings Guidance

After outperforming a flat S&P 500 by nearly 24% last year, General Electric Company has slightly underperformed the market in 2016. The story of GE refocusing its business (away from GE Capital) is largely known to the market now, so is General Electric's period of market-beating returns over? Let's take a look at what to expect in 2016 in light of the recent first-quarter results.

GE Chart
GE data by YCharts.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Wednesday, May 25, 2016

AgroFresh Solutions Stock Analysis

How 'bout them apples, and how 'bout that one product? At the moment those are the two key questions AgroFresh Solutions Inc.  shareholders are asking themselves before considering the company's progress. The company remains heavily reliant on the global apple harvest and its core SmartFresh product, which keeps fruit fresh longer during storage and transportation, and that exposure has hurt the company in recent quarters. Its first-quarter 2016 results were disappointing, but management outlined steps to improve overall performance in the future. Let's take a closer look at what's going on.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Caterpillar Inc or Illinois Tool Works

Illinois Tool Works versus Caterpillar ? At first glance, they appear strange bedfellows, but looking closely at their prospects reveals a lot about the current state of the industrial economy. The former is an all-purpose industrial with exposure to many parts of the economy, while the latter has heavy exposure to oil and gas, mining, and construction. They offer different things to different investors, but overall, which is the better value?

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Tuesday, May 17, 2016

Honeywell International Stock Analysis

In common with its peer and sometime acquisition target, United Technologies (NYSE:UTX), Honeywell International (NYSE:HON) has had a good 2016 so far. But can the good times continue? Let's take a look at the updated investment thesis for buying the stock in the light of Honeywell's recently released first-quarter results.

UTX Chart
UTX data by YCharts.
The case for buying Honeywell International stock With a trailing P/E ratio of nearly 19, Honeywell isn't an obviously cheap stock, but upon closer inspection, it has plenty of upside potential. In fact, if it merely hits its long-term targets, the case for buying the stock is a strong one. The best argument in its favor rests on its underlying free cash flow generation.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED


Cognex Corporation Earnings Analysis

Machine vision company Cognex Corporation's (NASDAQ:CGNX) first-quarter results easily beat management's guidance, and the forecast for the second quarter indicates a strong start to 2016. Despite management taking a cautionary tone on full-year prospects in Monday's earnings report, the market took the stock up as much as 20% in Tuesday's trading, and it was up 17% around 2:20 p.m. EDT. Let's take a look at the results from the quarter.

READ THE FULL EQUITY RESEARCH REPORT LINKED

Saturday, May 14, 2016

UPS Earnings Predict FedEx's Future

With rival United Parcel Service (NYSE: UPS) having given results recently, it's time to look ahead to what FedEx Corporation (NYSE: FDX) might report in its upcoming fourth quarter. UPS' commentary on market conditions has direct relevance to FedEx, so let's take a look at five key impacts on FedEx drawn from UPS' earnings report.
Ups Means
UPS and FedEx earnings are traditionally tied to the economy. Image source: United Parcel Service.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

Emerson Electric Earnings Analysis

Another quarter and another set of tough end-market conditions for Emerson Electric (NYSE: EMR). It almost feels like the company has spent the last two years firefighting deteriorating end markets. To be fair, though, its management hasn't stood still. Restructuring plans are afoot, even while the recent second-quarter results confirmed ongoing tough conditions. Let's take a look at the key themes and numbers from the earnings.

Emr
OIL AND GAS SPENDING REMAINS DIFFICULT FOR EMERSON ELECTRIC. IMAGE SOURCE: EMERSON ELECTRIC.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED


Friday, May 13, 2016

Cognex Corporation Stock Analysis

Dataman
COGNEX HAS HIGH HOPES FOR ITS MOBILE TERMINAL. IMAGE SOURCE: COGNEX CORPORATION. 
Machine vision company Cognex Corporation's (NASDAQ:CGNX) first-quarter results easily beat management's guidance, and the forecast for the second quarter indicates a strong start to 2016. Despite management taking a cautionary tone on full-year prospects in Monday's earnings report, the market took the stock up as much as 20% in Tuesday's trading, and it was up 17% around 2:20 p.m. EDT. Let's take a look at the results from the quarter.

READ THE FULL EQUITY RESEARCH ARTICLE LINKED

United Parcel Service, FedEx Corporation, Fuel Surcharge

How should we think about oil prices and profitability at logistics companies like United Parcel Service (NYSE:UPS) and FedEx Corporation (NYSE:FDX)? The answer will help determine your investing position in response to oil price movements. For example, if you think oil prices are likely to bottom (recall that a move from, say, $30 to $50 is actually a 66% hike in prices) in 2016, then is it safe to assume UPS and FedEx are automatically a buy now?
Let's take a closer look at the underlying considerations.
WTI Crude Oil Spot Price Chart

READ THE FULL EQUITY RESEARCH REPORT LINKED