Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
Stocks fell for the third straight day today, and the Dow Jones Industrial Average (DJINDICES: ^DJI ) had its worst session in nearly a month as concerns mounted about the Federal Reserve stimulus taper and a disappointing holiday season. The blue chips fell 94 points, or 0.6%, ending the day at 15,915.
With the Fed set to hold its next Open Market Committee meeting in two weeks to determine the future of its $85 billion bond-buying program, investors once again became nervous about the coming taper. Recent jobs numbers have been strong, and Friday's November jobs report should go a long way to determining monetary policy. Another month of strong employment growth could mean the Fed begins cutting the stimulus sooner than expected. Stocks have gained more than 25% this year in large part because of the Fed's bond-buying program, which have made bond yields artificially low, making stocks look better by comparison. Tomorrow's jobs report from ADP will be the first hint at how many new jobs were created in November.
Hot Retail Companies To Invest In Right Now: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Garrett Cook]
Philip Morris International (NYSE: PM) was down, falling 1.12 percent to $82.76. Analysts at Bank of America downgraded Philip Morris International from Buy to Neutral and lowered the target price to $87.
- [By Robert Stephens]
Philip Morris
The 4.4% yield offered by Philip Morris� (NYSE: PM ) �is well-covered at 1.5x, which seems to be very sensible and shows that the company is not over-extending itself when it comes to payments to shareholders. This makes the income from the stock even more sustainable and highlights its potential as a sound defensive play. - [By Roberto Pedone]
One stock that insiders are buying up a large amount of here is Philip Morris International (PM), which manufactures and sells cigarettes and other tobacco products in markets outside the U.S. Insiders are buying this stock into modest strength, since shares are up 5.5% so far in 2013.
Philip Morris International has a market cap of $143 billion and an enterprise value of $168 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 17.25 and a forward price-to-earnings of 14.6. Its estimated growth rate for this year is 4.2%, and for next year it's pegged at 11.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.59 billion and its total debt is $25.50 billion. This stock currently sports a dividend yield of 3.8%.
A director just bought 123,500 shares, or about $11.01 million worth of stock, at $89.15 per share.
From a technical perspective, PM is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last two months and change, with shares dropping from its high of $95.38 to its recent low of $85.21 a share. During that move, shares of PM have been mostly making lower highs and lower lows, which is bearish technical price action.
If you're bullish on PM, then I would look for long-biased trades as long as this stock is trending above some near-term support at $87.65 to $87 and then once it takes out its 200-day at $88.72 and its 50-day at $89.25 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 5.10 million shares. If we get that move soon, then PM will set up to re-test or possibly take out its next major overhead resistance levels at $91.40 to $92.26 a share. Any high-volume move above those levels will then put $94 to $95 into range for shares of PM.
- [By John Divine]
Stocks lost ground on Thursday as consumer spending numbers came in below expectations, and institutional investors sold positions ahead of the end of the second quarter. While the S&P 500 Index (SNPINDEX: ^GSPC ) ended modestly lower, Bed Bath & Beyond (NASDAQ: BBBY ) , Tenet Healthcare Corp. (NYSE: THC ) , and Philip Morris International, (NYSE: PM ) were the day's worst decliners. The S&P 500 itself lost two points, or 0.1%, to end at 1,957.
Top 5 Blue Chip Stocks To Own For 2015: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Laura Brodbeck]
Friday
Earnings Expected From: Chevron Corporation (NYSE: CVX), Procter & Gamble Company (NYSE: PG), Clorox Company (NYSE: CLX) Economic Releases Expected: U.S. ISM Manufacturing PMI, U.S. nonfarm payrolls, U.S. unemployment rate, British manufacturing PMI, eurozone manufacturing PMI, German manufacturing PMI, French manufacturing PMI, Italian manufacturing PMI, Spanish manufacturing PMIPosted-In: Earnings News Previews Global Economics Pre-Market Outlook Markets Trading Ideas Best of Benzinga
Top 5 Blue Chip Stocks To Own For 2015: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Teresa Rivas]
Both Visa (V) and MasterCard (MA) were rising on Monday, thanks in part to upgrades from Robert W. Baird.
Analysts David Koning and Adam Dahms boosted their opinions on both stocks to Outperform. They have a $245 price target on Visa, and note that the risk/reward has become more attractive, in our view, as the stock enjoys strong secular tailwinds in its business model, solid free cash flow generation, and what they see as exaggerated concerns about regulatory and competitive issues. They call the stock�� recent pullback as an attractive entry point, given the stock�� ��ompelling valuation.��/p>
Read more detailed estimates below:
Strong business model/solid balance sheet:
We think EPS growth in the mid-teens is sustainable over time behind roughly 10%+ revenue growth (the international segment is now about 50% of revenue and can grow rapidly).
The strong balance sheet/FCF typically in excess of earnings allows for strong buyback activity (could comfortably add 5%/year to EPS) or could allow for the accretive purchase of Visa Europe.
Recent fears about the stock might be a bit overblown:
Regulatory: Risk of potential share loss due to changes in the exclusivity rules did not materialize. The US Appeals Court decided to keep existing rules intact.
MCX: Although some share loss is certainly possible, we do not see overly material displacement of V/MA as a realistic outcome.
Russia: Full displacement is unlikely so long as consumers continue to use V/MA (acceptance largely consumer driven). Russia is likely <1% of revenue, not very impactful regardless of displacement.
CQ1 weakness: Credit card data from JPM/WFC last week showed CQ1 volumes largely steady (relative to CQ4). We considered some deceleration likely this quarter.
Valuation appears compelling at these levels:
The stock has underperformed the S&P by ~10% YTD (currently trades at +33% premium to NTM S&P, low
- [By Motley Fool Staff]
Remer: Oh, huge opportunity to change. But it will take time. You asked about MasterCard. It will take time to potentially replace the ecosystems that exist and how are those leading organizations -- the MasterCards, the Visas (NYSE: V ) , the American Express (NYSE: AXP ) , the PayPals -- going to come down to the next generation and give them the reason why they should utilize that same payment system.
- [By Ben Levisohn]
Financial stocks are taking the brunt of the damage this morning. The Financial Select Sector SPDR ETF (XLF) has dropped 1.1% to $129.83 at 9:38 a.m., making it the biggest loser among sector ETFs. Visa (V) and American Express (AXP) have dropped 1.8% and 1.7%, to lead the Dow lower.
- [By Dan Caplinger]
2. A simple savings account
Savings accounts aren't popular among financial institutions because they aren't big revenue generators. The profits from prepaid cards come from merchant charges that Visa (NYSE: V ) and MasterCard (NYSE: MA ) collect, keeping a portion and giving the rest to card-issuing institutions. That's likely where SpendSmart expects to get the money to pay Bieber's $3.75 million endorsement fee.
Top 5 Blue Chip Stocks To Own For 2015: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Stoyan Bojinov]
Morgan Stanley reiterated its “Overweight” rating on the Cupertino-based consumer electronics juggernaut Apple Inc. (AAPL), but went lowered its price target for the company.
Katy Huberty, an analyst with the firm, noted “We increase FY14 EPS by $2.47 to $44 on better iPhone 5c pricing and margins offset partially by weaker Mac sales due to DRAM constraints. Our new interactive model allows investors to test the impact of iPhone user growth, upgrades, mix and margins.” In light of the mixed outlook, Morgan Stanley lowered its price target on the stock from $630 to $540 a share.
Apple Inc. shares traded lower on Tuesday, shedding 0.31% on the day. The stock is down 8% YTD.
- [By Russ Krull]
There will be one more way to get a bite of Apple (NASDAQ: AAPL ) soon. The company released a new plan to return capital to shareholders, including a dividend raise and a $50 billion increase in its share repurchase authorization. According to the press release, "In conjunction with the expanded return of capital program, the Company plans to borrow and expects to announce more details about this in the near future." Given Apple's huge cash balance and profitable operations, expect the bonds to price with very low yields when they are announced. At the new dividend rate, the debt service will probably cost less than the dividend payouts on repurchased stock.
- [By Ashraf Eassa]
I would imagine, as we saw with 20-nanometer, that Apple (NASDAQ: AAPL ) will hog the initial supply of 14/16-nanometer throughout the industry for its latest iPhone and iPad chips. After that, it'd make sense for Qualcomm to work out the kinks with its smaller die size cellular baseband and then once the yield learning has taken place, bring to bear a much larger die size integrated applications processor on whatever FinFET processes it is using.
- [By JuhiKulkarni]
InvenSense (INVN) has been making a decent attempt to land an opening in Apple's (AAPL) gadgets, yet until now, the organization's exertions have been a waste. On the other hand, late reports demonstrate that InvenSense may have at long last arrived a spot in Apple's approaching iphone 6. Craig Hallum as of late said that "there is a decent risk InvenSense�iphone 6-pivot movement sensor and that it could bring about $50m in deals and $0.25 EPS over a year's opportunity."
No comments:
Post a Comment