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  • General Mills Is An Attractive Investment
    Today, 6:08 AM GIS 8 Comments

    Summary

    • General Mills missed the fourth-quarter earnings results and its share price dropped 3.7% after the earnings release.
    • Large companies in the packaged food industry are facing sluggish demand particularly in the developed markets where consumers are shifting towards healthy breakfast foods.
    • In the given scenario, General Mills has initiated a cost-cutting program for fiscal year 2015 which will help its earrings stream through significant costs savings.
  • UnitedHealth Group: A Stock For Dividend Lovers
    Today, 4:28 AM UNH 4 Comments

    Summary

    • UnitedHealth Group announced enviable dividends and share buybacks for its investors.
    • The group’s dividend history has remained robust and attractive since 2010.
    • This article will assess the company’s ability to sustain enormous dividend payouts in the future.
  • Abbott: A Worthwhile Investment
    Wed, May. 28 ABT 2 Comments

    Summary

    • Credit Suisse upgraded Abbott Laboratories to outperform from neutral, and raised the price target.
    • Abbott has confirmed that it is going to acquire CFR Pharmaceuticals for $2.9 billion.
    • Through the CFR acquisition, Abbott will be recognized as one of the top 10 pharmaceutical companies in Latin America.
  • Priceline: Future Looks Bright
    Wed, May. 28 PCLN 2 Comments

    Summary

    • High competition and heavy dependence on its business model (agency model) will become problematic for Priceline Group Inc.
    • The expected growth of online travel agencies in the U.S. and European markets will create opportunities for Priceline.
    • High customer satisfaction and content leadership will help smooth growth in the stock price.
    • New service initiatives by Travelocity and Israel's Qalika will boost Priceline Group Inc.'s revenues.
  • Hewlett-Packard Remains An Attractive Investment
    Tue, May. 27 HPQ 3 Comments

    Summary

    • Hewlett-Packard reported slightly disappointing results for the second quarter of FY 2014.
    • Hewlett-Packard aims to reduce its workforce by almost 15% in order to attain operational efficiency.
    • The company had been generous towards its shareholders, and has continued rewarding them through dividends and buybacks.
    • This stock is no longer a growth story, but is still an attractive investment for income investors.
  • CenturyLink: Future Looks Bright
    Tue, May. 27 CTL 4 Comments

    Summary

    • CenturyLink Inc.'s release of its Q1 FY 2014 results beat analysts' estimates regarding its top and bottom lines, and caused the company’s share price to rise substantially.
    • CenturyLink's strategic revenue and data integration and other core revenues positively contributed to the company's top line. The company added more broadband and Prism TV subscribers.
    • The company's bottom line deteriorated in Q1 FY 2014 compared to Q1 FY 2013 due to a decrease in margins, but it paid high returns to its shareholders.
    • The introduction of enhanced security through its DDoS Mitigation service will also enable the company to win more customers.
  • Salesforce.com: Unjustified Valuation And Repetitive Losses
    Mon, May. 26 CRM 8 Comments

    Summary

    • Salesforce managed to beat analyst expectations regarding its latest-quarter sales, and generated 37% YOY growth.
    • Excessive increases in expenses overshadowed the rise in revenues, so earnings failed to reflect the impressive revenue increase.
    • Salesforce has a robust cash flow position that allows it to continue spending on R&D, sales and marketing.
    • Salesforce's valuation is trading at an excessive valuation, which provides an opportunity for investors to generate some profits from the stock.
  • Delta Air Lines: A Good Choice For Investors
    Mon, May. 26 DAL 6 Comments

    Summary

    • Delta Air Lines, Inc. recently announced its plan for a 50% increase in its dividend per share and a $2 billion share repurchase program to be completed by December 2016.
    • Delta is also hoping to reduce its debt to $5 billion before the end of FY 2016 by generating more cash flows from optimization of capital expenditures and improving performance.
    • Delta has recorded strong upward movements in the earnings estimate revisions, indicating that analysts are becoming more hopeful regarding Delta's earnings for the current quarter and the fiscal year.
  • Buy Starbucks For An Upside Potential
    Mon, May. 26 SBUX 5 Comments

    Summary

    • Year to date the stock has dropped 9% but the company’s outlook for the fiscal year is quite good. It is believed that the stock price continue rising.
    • Starbucks is moving into different dimensions of the hot and cold beverage industry and plans to offer Fizzio in the summer and wine and beer to increase sales per customer.
    • The average target price for this stock is $88.48 which gives rise to an upside potential of around 26%.
  • Apache Is Going In The Right Direction
    Fri, May. 23 FCX, ECA, APA 4 Comments

    Summary

    • Apache Corp. recently announced the authorization of an additional repurchase of 10 million common shares bringing the company’s May 2013 share repurchase plan to 40 million shares.
    • The increase in returns made to shareholders reflects the confidence of Apache’s management in its strategies and the future outlook of the company.
    • The company is rebalancing its portfolio by focusing on lucrative and growth-driven areas by concentrating more on the North America region as well as product-wise by focusing more on liquids.
    • While Apache is currently trading at around $89.73, Barclays has recently changed its price target on Apache’s shares to $113. The firm currently has an overweight rating on the stock.
  • Agilent Technologies: A Worthwhile Investment
    Fri, May. 23 A 2 Comments

    Summary

    • Agilent Technologies Inc. has recently announced results for Q2 FY 2014 that are close to analysts' expectations, but are lower than the revenue and income earned in Q2 FY 2013.
    • The negative sales growth at the company's EM segment and costs associated with its spin-off adversely impacted the company's top and bottom line performance in Q2 FY 2014.
    • The company has planned to conclude the spin-off of its EM segment into a publicly traded company named Keysight Technologies by the end of FY 2014.
    • The company currently has a consensus rating of buy and a consensus target price of $60.38, reflecting upside from its current price at around $54.97.
  • Texas Instruments: A Decent Investment Opportunity
    Tue, May. 20 TXN 1 Comment

    Summary

    • Texas Instruments, Inc. has recently been upgraded to neutral by Nomura. Citigroup Inc. has reiterated its buy rating on the shares of Texas Instruments with a price target of $53.
    • The global economic recovery and robust growth in the demand for electronic devices from various sectors will cause the semiconductor market to grow at a CAGR of 7.6% during 2013-2017.
    • Texas Instruments is also restructuring its business to focus more on its analog chips segment as it has a high potential for growth.
  • AT&T Acquiring DirecTV - An Overlap Or Expansion?
    Tue, May. 20 DISH, DTV, SFTBY 5 Comments

    Summary

    • AT&T is said to be finalizing its acquisition of DirecTV in a week or two at a price of what may be $100 per share.
    • The DirecTV acquisition will help AT&T expand its U-Verse business in Latin America and more remote locations where it currently lacks approach.
    • The DirecTV acquisition will make AT&T more comparable to the services offered by FiOS.
    • This acquisition will be fruitful for AT&T as it will give an instant boost to its combined subscriber base.
  • SanDisk - Offering Handsome Upside Potential
    Tue, May. 20 ARW, TOSBF, SNDK Comment!

    Summary

    • SanDisk Corp. was recently upgraded by Raymond James from outperform to strong buy. The firm raised its price target on SanDisk’s stock from $90 to $115 indicating handsome upside potential.
    • SanDisk projects the Total Addressable Market "TAM" for NAND Flash will grow at a CAGR of around 8% from 2013 to 2016 due to an increase in data required for.
    • The company has also recently reached an agreement with Arrow Electronics Inc. to expand distribution of flash storage solutions to new regions worldwide.
    • SanDisk’s board of directors has recently approved a 33% increase in the company’s quarterly dividend payment to $0.30 per share ($1.20 per share on an annual basis).
  • Transocean Ltd.: A Good Investment Opportunity
    Mon, May. 19 SDRL, RIG 10 Comments

    Summary

    • Transocean Ltd. has recently announced its Q1 FY 2014 results that beat analysts' estimates regarding its revenue and earnings, due to its improved fleet revenue efficiency rate and cost-cutting initiatives.
    • The spin-off will enable Transocean to focus more on its deep-water and ultra-deep-water operations, as they are the company's more productive assets.
    • The high prices of oil and gas will support growth in expenditure by oil companies.
    • The massive potential reserves available and the technological developments will make exploration in deep sea more feasible.
  • Dominion Resource: Adding Cheap Renewable Resources To Generation Mix
    Mon, May. 19 D 3 Comments

    Summary

    • Dominion Resources Inc. has recently acquired the two biggest solar projects in southwest Tennessee that will add 32 megawatts of renewable energy to the company’s generation mix.
    • Solar energy is cheap and does not make Dominion susceptible to volatile fuel prices such as natural gas and supports the company’s bottom line.
    • The company currently has a consensus rating of “hold” by the twenty rating firms that cover the company.
  • Chesapeake Energy: Capitalizing On Growth Prospects
    Mon, May. 19 APC, CHK 2 Comments

    Summary

    • Chesapeake Energy Corp.’s hiring of CEO Doug Lawler to replace its founder Aubrey McClendon, 11 months ago seems to be a turning point for the company.
    • The company’s Q1 FY 2014 results revealed EPS soared 97% compared to Q1 FY 2013 and 11 cents above analysts’ estimates; revenue surged around 48% to $5.05 billion.
    • As a result of its turnaround strategy the company expects to record a positive free cash flow in FY 2014 for the first time since FY 2001.
    • The company also intends to capitalize on growth prospects by expanding outside of the U.S.
  • Why You Should Buy Amazon
    Wed, May. 14 TWTR, AMZN 59 Comments

    Summary

    • Amazon.com Inc. recently announced that it has entered into an agreement with Twitter Inc. allowing customers to add products to their carts by using the hashtag “#AmazonCart."
    • This will enable Amazon to serve in accordance with the emerging trend of social shopping trends among customers.
    • Twitter will benefit from the advertisement revenue from the e-commerce industry as Amazon plans to increase its budget and spending on advertising products on Twitter.
    • Amazon will also attract more members as it signed a deal with HBO last month that will allow Amazon to stream HBO’s videos through Amazon’s video streaming service.
  • Duke Energy: Energizing Your Returns
    Wed, May. 14 DUK 5 Comments

    Summary

    • Duke made a pre-tax charge of $1.4 billion that was tied to Duke’s exit from its Midwest commercial generation business.
    • Excluding the exit Duke’s revenues and earnings topped analysts’ estimates for the first quarter.
    • Up until now Duke has invested $2.5 billion on its wind projects and this is the right move to strengthen its position and reap the benefits from the growing wind.
  • CenturyLink Is A Stock To Hold
    Wed, May. 14 CTL 4 Comments

    Summary

    • CenturyLink’s current dividend yield is more attractive than the dividend yield of Verizon communication and AT&T.
    • The stock has picked up the pace and is trading at an eleven-month high price of $36.86.
    • CenturyLink is expanding its data centers capacity and dropping its prices to enhance its penetration in the cloud market.
  • Disney Is Rewarding Investors
    Tue, May. 13 DIS 6 Comments

    Summary

    • Disney beat forecasts as Frozen continued to fuel the earnings. In the second quarter Disney reported earnings per share of $1.11 and topped analysts’ estimates of $0.96.
    • Disney hopes to grow in China with the expected opening in 2015 of a Disney theme park in Shanghai.
    • Over the last twelve months Disney’s total return of 27.34% has outperformed the S&P 500 total return of 18.15%.
  • Emerson Electric: Bright Future Prospects Ahead
    Tue, May. 13 EMR 1 Comment

    Summary

    • Emerson Electric reported its Q2 FY 2014 results and missed analysts’ expectations regarding revenues and earnings.
    • The company performed well in Q2 FY 2014 in comparison to Q2 FY 2013 if the one-off charge due to Artesyn equity investment divestiture is excluded from the results.
    • The global industrial valves market is forecasted to reach a worth of $72 billion by 2015 that will bring growth for the company’s process management segment.
    • The company’s network power segment will record more growth in the coming years due to the rise in the global data center IP traffic and telecom capex.
    • The signs and forecasts of recovery in Europe will also boost the company’s financial performance in the coming years.
  • Occidental Petroleum: A Stock Worthy Of An Investment
    Mon, May. 12 OXY 1 Comment

    Summary

    • Occidental Petroleum Corporation recently reported its Q1 FY 2014 earnings that beat analysts' estimates due to improved production and prices of oil and gas.
    • The company’s oil and gas and chemical segments recorded revenue growth in Q1 FY 2014 that was partially offset by a decline in revenue from the midstream and marketing segment.
    • The company is selling various low-production assets, such as Hugoton Field and other assets in the Middle East/North Africa to be able to focus more on profitable projects.
    • The company is also splitting from its California operations to allow them to operate as a distinct and publicly traded company.
    • The proceeds from the asset sales will be used to pay more returns to shareholders in the form of increased dividends and share repurchases by the company.
  • Valero Energy: Bright Future Ahead
    Thu, May. 8 PSX, HFC, VLO 12 Comments

    Summary

    • Valero Energy Corporation’s impressive Q1 FY 2014 results made analysts at Cowen and Company and Barclays raise their price targets on the stock.
    • This growth in the company’s bottom line was supported by higher refining throughput margins and volumes receiving support from the cheap U.S. shale oil supply due to improvements in infrastructure.
    • Looking forward, further growth in the North American crude production is expected that will support the company and help it to increase its production as oil infrastructure improves.
    • The company is also investing to improve its transportation facilities and refineries to process more crude oil, while Latin America presents an attractive market to supply refined oil products.
    • Valero is also expanding its ethanol operations, which will support the company’s sustainability even if favorable circumstances in the wider refining industry start to fade.
  • Has American International Group Reached An Inflection Point?
    Thu, May. 8 KIE, IAK, KBWP 6 Comments

    Summary

    • AIG reported a mix of positive and negative performance during the first quarter of 2014.
    • AIG’s Property and Casualty business unit underwrote losses primarily due to high catastrophe loss claims during the quarter.
    • AIG’s Life and Retirement unit continued its growth momentum and saw a remarkable increase in assets under management leveraging on the demand of its products.
    • AIG may soon experience a turning point and is poised to focus on its core operation, insurance.
  • Chipotle: Buy Before It Gets Expensive
    Thu, May. 8 CMG 51 Comments

    Summary

    • Chipotle’s first-quarter results were mixed as its top-line growth continued to follow a similar trend but its bottom-line growth suffered due to high commodity prices.
    • In response to the rising commodity prices, Chipotle decided to increase its prices for the first time in three years.
    • The average target price for this stock is $602.09 which gives rise to an upside potential of 20% on its current price.
  • Netflix: A Stock With Upside Potential
    Thu, May. 8 NFLX 12 Comments

    Summary

    • Netflix’s earnings per share of $0.86 beats the analysts’ earnings estimate of $0.83 per share.
    • Netflix added 4 million subscribers well above the estimate of 3.85 million subscriber additions.
    • The average target price for this stock is $409.40 with an upside potential of 20% to its current price.
  • Weatherford Is A Good Buy
    Thu, May. 8 BHI, WFT 3 Comments

    Summary

    • Credit Suisse has recently reaffirmed an outperform rating on Weatherford International Ltd and raised its price target for the company’s stock from $19 to $30.
    • The company’s stock jumped 11% when it reported its Q1 FY 2014 results along with announcements about initiatives the company is undertaking to improve its financial position and performance.
    • The company has recently declared an agreement to sell its pipeline and specialty services business to Baker Hughes Incorporated for $250 million.
    • Weatherford is aiming to gain $1 billion by the end of FY 2014 through asset divestments and $0.30/share per annum from the closure of 50 loss-making facilities and job cuts.
    • The U.S. OFS industry is expected to record growth in 2014 as the region will increase its investment to grow its domestic supply.
  • Micron Technology: Impressive Performance Continues
    Wed, May. 7 SNDK, MU 8 Comments

    Summary

    • Since the start of January 2013 Micron’s stock price has increased to around 296%.
    • Over the last twelve months Micron’s total return has outperformed the S&P 500 and its competitors.
    • Micron’s current performance is impressive and analysts’ upgraded the stock to a buy rating.
  • Eaton Corporation: Current Price Offers A Good Entry Point
    Wed, May. 7 ETN 1 Comment

    Summary

    • Eaton Corporation topped analysts’ estimates by reporting a rise in first quarter profits.
    • Forecasts provided for the second quarter were somewhat disappointing and caused the share price to decline.
    • Eaton is expected to undergo some restructuring to enable its business to run smoothly despite uncertain economic situations due to the crisis in Ukraine and slowed growth in China.
  • Newmont Mining: A Stock Worthy Of An Investment
    Tue, May. 6 NEM 12 Comments

    Summary

    • Newmont Mining Corporation recently reported Q1 FY 2014 results revealing a 69% decline in the company’s earnings. Despite the decline the company still beat analysts’ estimates regarding its earnings.
    • The fall in the company’s top line due to unfavorable metal prices was the major reason behind the under performance of the company’s bottom line in Q1 FY 2014.
    • Analysts are optimistic about the recovery in demand and prices of gold and copper in 2014 as gold will be considered a safe investment and China will consume more copper.
    • The issues related to exports, faced by the company in Indonesia, are adversely affecting the company’s AISCs but Newmont’s CEO is optimistic for a favorable resolution.
    • The analysts at JPMorgan Chase & Co. and Citigroup Inc. have recently reiterated their neutral and hold ratings for Newmont’s stock, setting price targets that reflect the stock’s upside potential.
  • Google: Investors Can Expect Upside Potential
    Tue, May. 6 FB, AMZN, GOOG 18 Comments

    Summary

    • The cost-per-click was a problem for Google but apart from that there were impressive growth numbers.
    • Google believes that the cost-per-click difference between desktop and mobile interfaces is a short-term trend and in the medium-to-long term mobile pricing will be better than desktop pricing.
    • According to Google’s first quarter results the company increased its capital spending from $1.203 billion to $2.345 billion reflecting an increase of around 95%.