Shares of Caterpillar (CAT) are soaring today after the equipment manufacturer reported earnings that, at first glance, didn’t seem to inspire investor confidence. National Bank Financial’sMaxim Sytchev offers his take:
Daniel Acker/Bloomberg News
CAT-US just finished its conference call (please see our first take on Q2/16 results Here). In general we would qualify the tone as realistic vis–vis the macro environment with some slight positive incremental data points for the dealers on inquiries for rebuild activity (on the mining side). On the oil side, CAT has not seen any improvements yet from the sales perspective despite the commodity recovering from the bottom. When looking at global aggregated CAPEX spending, consensus is still pointing to y/y declines in 2016E and 2017E. We want to be sensitive to timing of CAPEX thawing as consensus numbers have a tendency to remain very sticky and not responsive to turning points. When we overlay gold / copper / iron ore index on CAPEX numbers going all the way back to 2000, there is a very strong correlation. The million dollar question is when the producers will start to feel more comfortable with loosening the spending purse strings
Best Gold Companies To Inv est In 2017: Illinois Tool Works Inc.(ITW)
Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Test & Measurement and Electronics segment provides equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Food Equipment segment offers commercial food equipment and related services. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Welding segment produces arc welding equipment, consu mables, and accessories for various industrial and commercial applications. The Construction Products segment produces engineered fastening systems and solutions. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is headquartered in Glenview, Illinois.
- [By Ben Levisohn]
Technology and Industrials are our favorite ways to buy cyclical MO. Specifically, we see the Technology Select Sector SPDR ETF (XLK) as an attractive pre-breakout idea and a likely candidate to lead the S&Ps secular advance over the coming years. Buy ideas at the stock level include: Accenture (ACN), Broadcom (AVGO), Microsoft , Texas Instruments (TXN),Visa (V),Yahoo! (YHOO). We also recommend buying the Industrial Select Sector SPDR ETF (XLI) which is reversing its year-long downtrend and in position for new highs over the coming months, in our view. Buy ideas at the stock level include: Honeywell International, Ingersoll-Rand (IR), Illinois Tool Works (ITW), 3M, Southwest Airlines (LUV), Xylem (XYL). Underlined stocks are fundamentally-rated Outperform at Oppenheimer.
Best Gold Companies To Invest In 2017: TheStreet, Inc.(TST)
TheStreet, Inc., a digital financial media company, provides business and financial news, investing ideas, and analysis to personal and institutional investors worldwide. The company engages in the online publishing of business and investment information through TheStreet, a paid subscription financial news and commentary Website. Its collection of digital services provides various content and tools for users, subscribers, and advertisers through a range of online, social media, tablet, and mobile channels. The companys subscription products include RealMoney, RealMoney Pro, Options Profits, Actions Alerts PLUS, TheStreet Quant Ratings, and Stocks Under $10, which are designed to address the needs of investors with various areas of interest, including fledgling investors, consumers interested in personal finance guidance, long-term and short-term active investors, and day and swing traders, as well as fundamental, technical, and options traders. Its RateWatch business publishes bank rate market information on a subscription basis to financial institutions and government agencies; and product line includes banking-related product and fee comparisons, financial strength reporting, educational webinars, mystery shopping, and consumer and financial institution surveys. In addition, the company operates a digital subscription platform that delivers coverage of the mergers and acquisitions environment primarily through The Deal Pipeline, a transactional information service provider. Further, it is involved in the syndication and licensing of data from TheStreet Ratings, which tracks the risk-adjusted performance of mutual funds and exchange-traded funds, as well as stocks; and operation of advertising-supported properties comprising TheStreet, MainStreet, Stockpickr, and Real Money. TheStreet, Inc. was founded in 1996 and is based in New York, New York.
- [By Steven Goldberg]
Launched in August 2001, Action Alerts PLUS Portfolio has been a centerpiece of the financial advice offered by TheStreet.com. The website belongs to TheStreet, Inc. (TST), a publicly traded company that Cramer co-founded in 1996. PLUS Portfolio subscribers, who pay $15 a month, always get the recommendations before Cramer buys them for the portfolio, the Wharton paper reports. Likewise, subscribers get Cramers picks before he airs them on Mad Money.
5 Best Bank Stocks To Invest In 2017: Zions Bancorporation(ZION)
Zions Bancorporation, a financial holding company, provides a range of banking and related services in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers community banking services, such as small and medium-sized business and corporate banking; commercial and residential development, construction, and term lending; retail banking; treasury cash management and related products and services; and residential mortgage servicing and lending. It also provides trust and wealth management services; capital markets services, including municipal finance advisory and underwriting; and investment services. In addition, the company offers personal banking services to individuals, including home mortgages, bankcards, other installment loans, home equity lines of credit, checking accounts, savings accounts, certificates of deposit of various types and maturities, safe de posit facilities, direct deposits, and Internet and mobile banking services. Further, it provides online and traditional brokerage services; small business administration and secondary market agricultural real estate mortgage loans; and bond transfer, stock transfer, and escrow services for corporate customers. As of December 31, 2015, the company operated 450 domestic branches. Zions Bancorporation was founded in 1873 and is headquartered in Salt Lake City, Utah.
- [By Monica Gerson]
Zions Bancorporation (NASDAQ: ZION) is estimated to post its quarterly earnings at $0.39 per share on revenue of $576.49 million. Zions Bancorporation shares gained 2.10 percent to close at $27.28 on Friday.
- [By Ben Levisohn]
Bank of America (BAC) is our top bank idea – expectations are lower with shares at ~0.9x TBV, its balance sheet is highly asset sensitive (~100 bps parallel increase in rates adds ~$6B to NII or ~$0.35 to EPS), and Bank of America should be a relative winner in CCAR (total payout ratio should rise closer to ~60% vs. ~40% in 2015 planning period). We continue to like Comerica (CMA) given its M&A optionality over the intermediate term (takeout price likely closer to ~$60) but would use market volatility to add on weakness. It is harder to find value in the regional banks (examples: Citizens Financial Group (CFG), Regions Financial (RF), SunTrust Banks (STI), Zions Bancorp (ZION)), and the asset-sensitive regionals look more vulnerable if sentiment weakens. We remain comfortable with the Underperform on M&T Bank (MTB) which trades at ~13.5x 2017E EPS vs. the ~11x peer median.
- [By Ben Levisohn]
Lee offers 22 stocks that could benefit from the correlation trade: Western Digital (WDC), Xerox (XRX), First Solar, Ford Motor, Best Buy (BBY), PulteGroup (PHM), AutoNation (AN), Textron (TXT), Jacobs Engineering Group (JEC), Mosaic, BB&T (BBT), Fifth Third Bancorp (FITB),Loews (L), Regions Financial (RF), KeyCorp (KEY), Comerica (CMA), Leucadia National (LUK), Zions Bancorp (ZION), Valero Energy (VLO), Marathon Oil, Cardinal Health (CAH), and Pepco Holdings (POM).