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Melco Crown Has Been Facing Challenges
- Melco Crown’s topline witnessed a double-digit drop of 10% in the third quarter of 2014 and reported absolute revenues of $1.12 billion.
- According to Fitch Ratings, the company’s Macau revenue will be flat for 2014 and fall 1% in 2015 as traffic remains under pressure.
- The recent anti-corruption campaign in China and cooling down of the Chinese economy are giving the company a hard time.
- Japanese law makers have postponed the legalization of casinos for an indefinite period.
Union Pacific Is A Fortified Business With Long-Term Prospects
- UNP is part of the backbone of the US economy. Its shares delivered a 52% price return in one year, beating the Dow Jones Transportation Average and S&P 500.
- UNP reported strong financial and operational performances during the third quarter of 2014. The company is part of a stable railway industry that enjoys high-entry barriers.
- Railway is expected to remain the most feasible mode of terrestrial transport. The consensus target price reveals upside and the decent dividend yield makes it an attractive investment.
Johnson Controls - A Strong Business To Buy
- JCI is a strong business and a leading innovator that has long-term prospects. It beat the EPS consensus and reported a healthy financial performance for the fourth quarter of 2014.
- The forecasted urban explosion will bring about healthy growth opportunities for JCI as it innovates and produces leading building efficiency technologies.
- The consensus target price and relative valuation reveal attractive upside so those with long-term investment perspectives should consider the company for investment.
Mondelez International - Aiming For Growth
- Mondelez seems to be on the right track to achieving its aim of revenue growth and margin expansion. The third quarter results brought reasons to remain hopeful.
- Mondelez needs to improve its performance in the Asia Pacific region by developing a strategy to improve revenue growth in the region.
- Mondelez’s acquisition of Vietnam’s largest snack food company is a good move to improve its penetration in the Asia Pacific region.
Devon Presents A Nice Investment Opportunity
- Devon’s stock price recently jumped by approximately $7 per share. The increase was primarily attributed to the better than expected quarterly results.
- The company also completed its portfolio transformation. With the successful transformation, the company’s asset portfolio is now focused on rich resource plays in North America.
- The company has been successfully curtailing its costs. It reduced its total expenses as a percentage of revenues to only 66.7 percent from the previous year’s 73 percent.
Delta Air Lines - The U.S. - China Visa Deal
- Delta Air Lines Inc. expects to benefit from the new US-China visa policy. This new visa policy will allow short-term visa extensions of up to ten years for both countries.
- Delta Air Lines is in a strong position to capitalize on the forecasted growth in air travel in the next two decades which should create value for investors.
- Delta Air Lines has strengthened its business in the past few years. The consensus target price and relative valuation advocate that DAL is an attractive long-term investment.
Clorox Seems To Be On The Right Track
- Clorox’s decision to exit from its Venezuelan business is considered a step that will ensure bright long-term growth prospects.
- The company also declared its earnings guidance for fiscal year 2015 and expects margin improvement.
- The company has been pursuing a long-term strategy aimed at growing its revenues, expanding margins, and increasing free cash flows by 2020.
- The company has a history of returning cash to its shareholders. Moreover, with the recently enacted measures it seems that it will further improve its returns.
Kroger: A Long-Term Investment Candidate
- Kroger registered top line gains of 11.60% due to the combination with Harris Teeter, more households shopping at Kroger, increase in transaction count and higher product pricing.
- The company was able to witness an improvement of 8 basis points in its gross margin during the second quarter in 2014 which clocked in at 20.54%.
- Operating profit margin had plunged to 2.54% as a proportion of sales in the second quarter of 2014 from 2.62% during the same period last year.
- Immediate short-term liquidity position is weak. However, long term survival may not be an issue as Kroger is generating CFO that covers up to 40-45% of long term debt.
- The stock’s P/E based valuation represents a capital return potential of approximately 46%.
Target: A Doubtful Investment
- The shift to e-commerce is pressuring the company’s margins, and Target needs to put in additional efforts to counter the downfall in its in-store shopping.
- To regain its lost market share, the company has cut its prices due to the cutthroat competition it continues to face from Wal-Mart's “everyday low prices” strategy.
- Target also has plans to remodel its stores and focus on smaller-format stores in an attempt to cater to the needs of urban shoppers.
- The payment of dividends has been curtailed for now on the back of the cash flow required for the land development project.
- Although the company is taking steps to amend the situation, a lot is still unclear, which makes investment in this stock a bit doubtful.
Carnival Corporation: A Decent Investment
- CCL is the world’s largest cruise company with a huge presence in key tourist markets. It is positioning itself to capitalize on the growth of the Chinese cruise market.
- Relocating COO Alan Buckelew to China and capacity expansion are two strategies that will help fuel the company’s growth.
- Carnival’s fuel conservation program will continue to help reduce costs and will support its profit margins.
Time Warner Inc. And The Appeal Of HBO
- With its proven abilities Time Warner Inc. is in a strong position to capitalize on the growing demand of quality entertainment content. This makes the company a long-term investment.
- HBO carries about 30% of Time Warner’s total value and has good growth potential. The company plans to invest in growth areas including the marketing of the HBO brand.
- These investments are likely to create value for the company’s shareholders. The stock has the combined attributes of growth and value stocks.
China Mobile Limited Needs To Improve Profit Margins
- China Mobile Limited is a stable business with obvious strengths. However, it has been experiencing slow top line growth and negative bottom line growth in the previous years.
- The company is investing to capitalize on the growth in data services. It is also trying to preserve the value of traditional voice services that are exhibiting slow decline.
- The stock reported a good performance in the past six months. The dividend yield is high and the consensus target price reveals upside.
Canadian Pacific Railway Limited: A Long-Term Stable Growth Investment
- CP is an efficient railway company that is a good investment choice for investors that want to gain long-term exposure in the railway industry that enjoys wide economic moats.
- CP has announced ambitious multi-year top and bottom line growth targets. It can achieve these targets since it has the proven ability to improve its operational and financial performances.
- The consensus target price reveals upside potential. The stock price performance has been impressive and pays out dividends at low yields making the company an attractive long-term investment.
Noble Energy: Delivering Long-Term Production Growth
- Noble Energy is all set to deliver production growth at a Compound Annual Growth Rate (CAGR) of 18 percent up until 2018.
- Both onshore and offshore operations are expected to contribute to the increased production growth.
- The company recently announced its entry into the Gabon coastal basin. The move will allow the company to diversify its global portfolio of assets.
- In addition, the strategy to expand in the Gulf of Mexico yielded desired results and has resulted in Katmai’s reserves increasing by approximately 10 MBOE.
- The diversified portfolio of both the international and national assets will help the company to generate significant cash flows.
United Continental Holdings: An Attractive Long-Term Investment
- UAL is a leading airline working on a multi-pronged strategy to realize cost savings and boost profitability. UAL expects to realize $2 billion in annual costs saved by 2017.
- UAL has decreased its debt level in recent years and that has decreased its interest payments by nearly 30%.
- UAL plans to decrease its debt further which would decrease its fixed costs and risks.
- UAL is well placed to capitalize on the growth in global air travel. The consensus target price and relative valuation reveals attractive upside for growth investors.
Walgreen Co.: A Consumer Defensive Stock That Is Worthy Of Long-Term Investment
- Walgreen's acquisition of Alliance Boots will open doors to international expansion. With its strong brand and business model, Walgreens has the capacity to deliver long-term growth.
- Walgreens is a strong business that managed to keep its margins stable to allow top-line growth to trickle down to EPS. It has a healthy EPS growth outlook for 2016.
- Walgreens is expected to share its success with its shareholders through generous dividends and repurchases. The consensus target price reveals healthy upside at its current price level.
Canadian National Railways Company: A Business With High Protection Barriers
- CNI is a stable business that enjoys high protection barriers. High barriers are inherent to the railway industry making the companies operating in the industry long-term and stable investments.
- CNI received recognition as a sustainable business by gaining a place in the Dow Jones Sustainability World Index.
- The consensus target price and relative valuation measure indicate the fact that the company is under-appreciated by the market.
- The growing dividend and share repurchase program makes it an attractive investment.
Yum Brands Is A Worthy Long-Term Investment
- YUM is a strong business that has exposure in both the developed and developing markets. YUM is expanding into emerging markets where consumer spending is growing at healthy rates.
- YUM plans to expand its restaurant chains in emerging markets to 20,000 by 2020.
- YUM has opened its first Pizza Hut in South Africa and plans a chain expansion in the coming years.
- YUM’s dividend yield is higher than the dividend yield of the S&P 500.
- The consensus target price indicates that long-term value investors should take a position in YUM at its current price level.
Precision Castparts Corp: An Attractive Long-Term Investment
- Precision’s Aerospace segment as a percentage of total business grew in recent years. Precision’s capabilities will allow it to earn its share in the forecasted $4.84 trillion demand for airplanes.
- It has relentless cost focus and managed to improve its gross and operating margins considerably in the past ten years.
- The consensus target price reveals an attractive upside at the current price. Relative valuation also indicates the undervaluation of stock.
Staples For Income Investors
- With digital computing on the rise, the demand for the company’s products has been reduced considerably.
- Amazon and Wal-Mart have significantly impacted the company’s sales.
- The company is presently in the process of shutting down 140 of its stores by the end of FY2014.
Whirlpool Corporation: A Consumer Cyclic Stock
- Whirlpool is a leading appliance manufacturer and innovator with a huge global presence. It is well positioned to reap the growth from the recovering appliance demand in the US.
- Whirlpool’s products have a huge global market. Whirlpool is strengthening its position in the emerging consumer market of China by acquiring a 51% stake in Hefei Sanyo.
- The investment in China will allow the company to capitalize on the giant Chinese market. The consensus target price reveals upside potential at the stock’s current price level.
Enbridge: Invest In A Stable And Growing Oil And Gas Business
- Enbridge, with its huge distribution network, plays a crucial role in the functioning of the North American economy.
- Enbridge is investing heavily to benefit from the growth in North American oil and gas production. Healthy growth in the top and bottom lines and shareholders value is expected.
- Enbridge has reported consistent and growing EPS and dividends. It beat the index and produced superior returns to shareholders. The consensus target price reveals upside at its current price.
Reynolds American Has Fading Long-Term Prospects
- Tobacco smoking has decreased in the US over the past years. The decreasing trend in smoking is recorded among both adult and high school students.
- With the growing awareness about the harmful effects of smoking, Reynolds is facing a stagnating top line. Its share price return lagged the indices during the past year.
- The acquisition of Lorillard will add the Newport brand to Reynolds’ portfolio.
- However, the Newport brand appears to be a sinking ship with a large market share but little growth potential.
Devon Energy Corporation: An Attractive Oil And Gas Investment
- Devon is one of the leading oil and gas companies with a strong presence in some of the most prolific US oil regions, including Permian Basin and Eagle Ford.
- Devon is well placed to capitalize on the growth in US oil production.
- It managed to generate 79% YOY growth from the US plays during the second quarter of 2014.
- Devon is a financially stable company that is positioning itself for growth by bringing focus to its business.
Cabot Has Strong Reserves And Production Growth
- The analysts at Stifel research firm recently upgraded the company from hold to buy. The firm also believes that the company offers a nice upside potential of 18%.
- The Marcellus and Eagle Ford shales continue to benefit in the long term as the company has been pursuing an active drilling program.
- With these assets the company is well positioned to deliver production growth of 20% to 30% by 2015.
- In addition to the increased production the company is also putting efforts into strengthening its reserve base.
- During the past three years the company delivered production growth at a CAGR of 26%.
EQT Corporation: An Efficient Business With Attractive Upside Potential
- EQT Corporation, a strong player in the oil and gas sector, has attained healthy growth in proven reserves at a CAGR of 20% over four years.
- EQT is among the leading operators in one of the most prolific regions of North America. This gives EQT promising growth prospects.
- EQT’s midstream business has reported a strong financial performance. EQT is one of the most efficient operators with leading cost metrics.
- EQT is investing heavily to capitalize on growth opportunities in its production and midstream segments. The consensus target price reveals very attractive upside potential.
Gap Offers Good Upside Potential
- The Gap global segment is expected to put a downward pressure on the overall profitability of the company.
- The company will open 40 new stores in India by partnering with Arvind Lifestyle Brand Ltd.
- India’s apparel market is expected to grow at an aggregate rate of 15% per year through 2011-2020.
Continental Resources Is A Long-Term Investment Play
- The company has been pursuing a disciplined growth strategy aimed at tripling the production and reserves.
- To do so, Continental Resources has been focusing on two leading oil weighted plays: Bakken Field and SCOOP.
- The company has allocated $4 billion of the capital spending budget to carry on with the enhanced completion program.
- The company was also able to increase the proved reserves by approximately 31 percent which signifies the company’s potential to secure higher production for years to come.
EOG Resources: There Is Still Time To Grow With The Growing U.S. Oil Production
- EOG Resources is the leading oil producer in the plays with the highest growth potential such as Eagle Ford and Bakken.
- The growth in crude, condensate, and NGL production will continue at healthy double-digit rates in the leading plays where EOG is present.
- The consensus target price reveals an attractive upside at its current price. EOG rewards shareholders with growing dividends. Investors should consider investing in EOG at its current price.
Concho Resource: An Attractive Growth Investment
- The Permian Basin is one of the most prolific oil plays in the US that has shown healthy production growth in recent years.
- The present daily oil production in the Permian Basin is about 1.5 million barrels. Daily oil production is expected to reach 2.5-3.2 million barrels per day by 2025.
- Concho is an efficient company that is capable of reporting strong financial performance. The consensus target price reveals a very attractive upside at its current price level.
The Growth Story Of Canadian Natural Resources
- The company continues to enjoy the diversified locations of its assets that help it to reduce significant geopolitical risk.
- With its diversified asset base, the company seems to be well positioned to deliver production growth at a CAGR of 9 percent in the next five years.
- The increased production will help the company to generate significant free cash flows which will in turn help the company to increase shareholders return.
- The company can be a good investment opportunity for growth seeking and value seeking investors.
Pioneer Natural Resources Will Benefit From Production Growth
- During the second quarter of 2014, Pioneer was able to beat its own production guidance primarily due to the successful increase of its horizontal drilling program.
- The company also plans to double the number of wells from 68 in the first half of 2014 to 125 wells in the second half of the current year.
- The increased operational efficiency coupled with management’s commitment to drill more wells means the company has revised the lower side of its production guidance.
- Given the fact that the company has also allocated 63 percent of its $3 billion capital budget to its horizontal drilling program.
- In addition, the company stands to benefit from the recent export approval by the U.S. Department of Commerce.