Goldman Sachs analyst Noah Poponak and team like the defense sector but have some concerns about Lockheed Martin (LMT), particularly its valuation. They explain:
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We continue to hold an Attractive sector view on Defense, where Lockheed is the bellwether and owns one of the Pentagons fastest growing programs in the F-35. However, the remainder of the portfolio is not particularly differentiated, there are earnings and cash flow headwinds compared to current consensus assumptions, and it is currently the most expensive Defense stock we cover.
What we favor: 1. Defense budget at trough. Defense is right at the trough, with 2016 the first year of Department of Defense investment growth in 8 years, andLockheed Martin is the bellwether. 2.Joint Strike Fighter a substantial differentiator.Lockheed Martin is the prime on the F-35, which grows quickly through the end of the decade, allowing totalLockheed Martin revenue to grow faster than the industry. 3. Reshaped portfolio has more focus. The addition of Sikorsky and subtraction ofInformation Systems & Global Solutions leaves a net higher long-term growth and margin business.
Best Life Sciences Companies To Buy For 2017: Tarena International, Inc.(TEDU)
Tarena International, Inc., through its subsidiaries, primarily provides information technology (IT) professional education services through part-time and full-time classes in the Peoples Republic of China. It offers education courses in 11 IT subjects, such as Java, .NET, C++, software testing, PHP, embedded, Android, iOS, Big Data, Web front-end development, and Linux and network engineering; and 3 non-IT subjects comprising digital art, online sales and marketing, and accounting through live distance instruction, classroom-based tutoring, and online learning modules. The company also provides two kid education programs, including Tongcheng and Tongmei. Tarena International, Inc. was founded in 2002 and is headquartered in Beijing, the Peoples Republic of China.
- [By Monica Gerson]
Tarena International Inc(ADR) (NASDAQ: TEDU) is estimated to post a quarterly loss at $0.03 per share on revenue of $39.35 million.
Ituran Location and Control Ltd. (US) (NASDAQ: ITRN) is projected to post earnings for the recent quarter.
Best Life Sciences Companies To Buy For 2017: Fox Factory Holding Corp.(FOXF)
Fox Factory Holding Corp., incorporated on December 28, 2007, designs, engineers, manufactures and markets performance ride dynamics products for customers across the world. The Company’s brand ride dynamics products are used primarily on bicycles (bikes), side-by-side vehicles (Side-by-Sides), on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and FLOAT iCD, which provides riders the ability to adjust modes for different skills, terrains and activity levels on mo untain bikes.
The Company holds interests in Sport Truck USA, Inc., which designs, markets, and distributes lift kit solutions primarily through its brands, BDS Suspension and Zone Offroad Products. The Company holds interests in Race Face Performance Products, Inc. and Easton Cycling (USA), Inc. (together Race Face/Easton), which designs, manufactures, and distributes performance mountain and road bike wheels, and other performance cycling components, including cranks, bars, stems and seat posts. The Company offers front fork and rear suspension products designed for cross-country, trail, all-mountain, free-ride and downhill riding primarily for the mountain bike market. Its mountain bike products are sold in various series, including Performance series, Performance Elite series and Factory series. Its suspension component products in the powered vehicle category range from two inch aluminum bolt-on shocks to its position sensitive internal bypass shocks. It al so offers suspension systems, or lift kits, containing its s! uspension components, for use in trucks.
The Company competes with SRAM Corporation, A-Pro, HB Performance Systems, SR Suntour, Vereinigte Drahtwerke AG, Cane Creek Cycling, DVO Suspension, Bos-Mountain Bike Suspensions, Ohlins Racing AB, Amer Sports Corporation, Shimano, Kayaba Industry Co., Ltd., Walker Evans Racing, Works Performance Products, Inc., Penske Racing Shocks, ZF Friedrichshafen AG, Elka Suspension Inc., ThyssenKrupp Bilstein Suspension GmbH, King Shock Technology, Inc., Icon Vehicle Dynamics, Sway-A-Way, Tenneco, TransAmerican Wholesale, Rough Country Suspension Systems, TeraFlex, ReadyLIFT Suspension, Tuff Country EZ-Ride Suspension and Rusty’s Off-Road.
- [By Javier Hasse]
Fox Factory Holding Corp (NASDAQ: FOXF) was down 1.8 percent after posting a 2.16 percent rise over the day.
Finally, Groupon Inc (NASDAQ: GRPN) gained 1.3 percent, continuing with the 3.85 percent spike it experienced on Friday trading.
Top 5 Transportation Stocks To Watch For 2017: Amgen Inc.(AMGN)
Amgen Inc., a biotechnology medicines company, discovers, develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. The company markets recombinant protein therapeutics in supportive cancer care, nephrology, and inflammation. Its principal products include Aranesp and EPOGEN erythropoietic-stimulating agents that stimulate the production of red blood cells; Neulasta and NEUPOGEN to stimulate the production of neutrophils, which is a type of white blood cell that helps the body to fight infections; and Enbrel, an inhibitor of tumor necrosis factor that plays a role in the body?s response to inflammatory diseases. The company also markets other products comprising Sensipar/Mimpara, a small molecule calcimimetic that lowers serum calcium levels; Vectibix, a monoclonal antibody that binds specifically to the epidermal growth factor receptor; and Nplate, a thrombopoietin (TPO) receptor agonist that mimics endogenous TPO, the primary driver of platelet production. In addition, it provides Denosumab, a human monoclonal antibody that targets RANKL, an essential regulator of osteoclasts. Further, the company offers product candidates in mid-to-late stage development in a variety of therapeutic areas, including oncology, hematology, inflammation, bone, nephrology, cardiovascular, and general medicine consisting of neurology. It markets its products to healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies; consumers; and wholesale distributors of pharmaceutical products. The company has various collaborative arrangements with Pfizer Inc.; GlaxoSmithKline plc; Takeda Pharmaceutical Company Limited; Daiichi Sankyo Company, Limited; Array BioPharma Inc.; Kyowa Hakko Kirin Co. Ltd.; and Cytokinetics, Inc. Amgen Inc. was founded in 1980 and is headquartered in Thousand Oaks, California.
- [By Ben Levisohn]
Well, it looks like Medivation (MDVN) now has five suitors after reports that Amgen (AMGN) is joining Pfizer (PFE), Sanofi (SNY), AstraZeneca (AZN) and Novartis (NVS) in considering a bid. Maxim’s Jason Kolbert and Jason McCarthy offer their thoughts:
- [By Ben Levisohn]
Leerink’s Geoffrey Porges and Assaf Vestin are attending the annual American Society of Clinical Oncology, or ASCO, meeting and came away seeing the “biggest positive impact” forCelgene (CELG), but only a “modest” impact for Amgen (AMGN),Regeneron Pharmaceuticals (REGN) and Gilead Sciences (GILD). They explain:
- [By Ben Levisohn]
We were obviously wrong with our Sector Perform rating: while we knew an M&A transaction was definitely a good possibility, we just could not get to this level of valuation using a realistic Xtandi model and thus could not recommend the stock. The only way for us to get to $81.50 (or even to $60-$70/share) would have been to assign very significant value to talazoparib. And we could not do that given the amount of available clinical evidence.Medivation shareholders who held on to their shares past the $50′s, did just that, were proven right and are now rewarded for it, since they believed that someone would be willing to pay for this asset just months ahead of Phase III data. The key question is why would a company be willing to part with what they claim/think may be a multibillion dollar drug that works in multiple cancers. We believe the obvious answer is because they’re smart and understand drug development risk better than most. We’ll know in a matter of months whether Pfizer/Medivation is like Amgen (AMGN)-Onyx (carfilzomib) or not.