RBC’s Deane Dray and team look ahead to General Electric’s (GE) meeting next week, where it will highlight its digital platform:
General Electric Chief Executive Jeff Immelt Reuters
Outperform-rated GE is hosting an investor meeting spotlighting its GE Digital platform in San Ramon, CA on June 23. Expect Chief Digital Officer Bill Ruh to provide more specifics around GEs transformation into a Top-10 global software company by 2020. Almost every Multi-Industrial is investing in new software/IoT capabilities today, but GE clearly has a head start in this sector-wide gold rush…
Over the past year, it has become abundantly clear that building out Digital/software capabilities is among GEs highest priorities, with a stated goal of becoming a Top-10 global software company by 2020. Digital revenues are expected to total +$6 bil in 2016, up +30% Y/Y and representing 5% of the total mix, with orders on pace to exceed +$7 bil. Longer-term, management aims to expand Digital revenues to ~$15 bil by 2020, implying a ~25% CAGR. Importantly, GE has conservatively guided for only a couple of cents of Digital contribution within its +$2 EPS target for 2018, and noted that demand for Predix represents almost entirely upside. One of the challenges in marking the progress in GEs Digital build-out is the risk of double-counting, given that these software offerings are often embedded within the products and services across GEs businesses today. Our current $35 sum-of-the-parts-driven price target assumes multipleexpansion to ~20x for just 7.5 % of GEs blended P/E multiple to account for GEs digitization progress by 2018…
Best Services Stocks To Own For 2016: International Game Technology(IGT)
International Game Technology PLC operates and provides a range of services and technology products across lotteries, machine gaming, sports betting, and interactive gaming markets in North America, Asia, and Europe. It provides online lottery transaction processing systems; a suite of lottery-enabled point-of-sale terminals; supplies instant ticket games; and provides printing services, instant ticket marketing plans, graphic design, programming, production, packaging, and shipping and delivery services. The company also provides video lottery terminals (VLT), VLT central systems, and VLT games to government customers; video and traditional mechanical reel slot machines and casino systems to casino operators; and amusement with prize machines and games to licensed operators, as well as designs, develops, manufactures, and provides cabinets, games, systems, and software. In addition, it is involved in the provision of sports b etting platform that offers betting on sporting events, motor sports, and non-sporting events, such as entertainment, music, culture, and current affairs; transaction processing of commercial transactions, such as prepaid cellular telephone recharges, prepaid mobile data, prepaid electricity and other utility bill payments, credit card transactions, social security contributions and payments, and prepaid cards; and collection, processing, and network services on behalf of third parties, as well as in the issuing of electronic money through immediate conversion of funds. Further, the company provides interactive games, such as poker, casino games, bingo, iLottery, sports betting, horseracing, and skill-based games. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was incorporated in 2014 and is headquartered in London, the United Kingdom.
- [By Michael Flannelly]
Analysts at Sterne Agee noted on Monday that International Game Technology’s (IGT) fiscal 2014 growth is stronger than it appears. As such, the analysts raised the price target on the casino gaming equipment manufacturer.
The analysts maintain a “Buy” rating on IGT and now see shares reaching $25, up from the previous target of $23. This new price target suggests a 23% upside to the stock’s Friday closing price of $20.32.
“Excluding FY13 Canadian VLT sales, which do not recur in FY14, consensus FY14 EPS growth is ~14% versus ‘in-print’ consensus EPS growth of ~4%,” Sterne Agee analyst David Bain said. “We believe IGT’s peer-low stock valuation is partly driven by a misinterpretation of forward growth using ‘in-print’ FY14 EPS projections.”
Futhermore, the firm raised IGT’s fourth quarter EPS estimates from 33 cents to 34 cents.
IGT shares were inactive during pre-market trading on Monday. The stock is up 43.4% year-to-date.
Best Services Stocks To Own For 2016: Golar LNG Partners LP(GMLP)
Golar LNG Partners LP, incorporated on October 24, 2007, owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers under long-term time charters. The Company operates through the LNG market segment. The Company’s fleet consists of approximately six FSRUs and over four LNG carriers.
The Company’s FSRU vessels include Golar Spirit, Golar Winter, Golar Freeze, NR Satu, Golar Igloo and Golar Eskimo. Its FSRU vessels have a total capacity of approximately 846,000 cubic meters. The Company’s LNG carriers include Golar Mazo, Methane Princess, Golar Grand and Golar Maria. Its LNG carriers have a total capacity of over 564,400 cubic meters.
The Company competes with Hoegh LNG, Excelerate, BW Gas, Mitsui OSK Lines, Royal Dutch Shell, BP, Malaysian International Shipping Company, National Gas Shipping Company and Qatar Gas Transport Company.
- [By Roberto Pedone]
Golar LNG Partners LP (GMLP), a limited partnership, owns and operates floating storage and regasification units and LNG carriers under long-term charters. This stock closed up 3.5% at $32.74 in Monday’s trading session.
Monday’s Volume: 432,000
Three-Month Average Volume: 81,559
Volume % Change: 283%
From a technical perspective, GMLP bounced notably higher here right off its 200-day moving average of $31.79 and back above its 50-day moving average of $32.56 with strong upside volume. This move is quickly pushing shares of GMLP within range of triggering a near-term breakout trade. That trade will hit if GMLP manages to take out Monday’s intraday high at $32.96 to some more near-term overhead resistance at $33.15 with high volume.
Traders should now look for long-biased trades in GMLP as long as it’s trending above its 200-day at $31.79 and then once it sustains a move or close above those breakout levels with volume that’s near or above 81,559 shares. If that breakout hits soon, then GMLP will set up to re-test or possibly take out its next major overhead resistance levels at $34.78 to its 52-week high at $36.
Top Cheapest Companies To Invest In Right Now: Laboratory Corporation of America Holdings(LH)
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company in the United States. The company offers a range of testing services used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease, as well as specialty testing services. Its routine tests include blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, HIV tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests. The company?s specialty tests and related services comprise viral load measurements, genotyping and phenotyping, and host genetic factors for managing and treating HIV infections; cytogenetic, molecular cytogenetic, biochemical, and molecular genetic tests for diagnostic genetics; oncology tests for diagnosing and monitoring certain cancers and treatments; clinical trials testing for pharmaceutical companies, which conducts clinical research trials on diag nostic assays; forensic identity testing used in criminal proceedings and parentage evaluation services, as well as testing services in reconstruction cases; allergy testing; and occupational testing for the detection of drug and alcohol abuse. Its customers include independent physicians and physician groups, hospitals, managed care organizations, governmental agencies, employers, pharmaceutical companies, and other independent clinical laboratories. The company operates a network of 51 primary laboratories and approximately 1,700 patient service centers. In addition, it delivers a co-branded electronic health records Lite solution for physician practices. The company works with university, hospital, and academic institutions, such as Duke University, The Johns Hopkins University, the University of Minnesota, and Yale University to license and commercialize new diagnostic tests. Laboratory Corporation of America Holdings was founded in 1971 and is headquartered in Burlingt o n, North Carolina.
- [By Monica Gerson]
Laboratory Corp. of America Holdings (NYSE: LH) is estimated to report its quarterly earnings at $1.96 per share on revenue of $2.19 billion.
Roper Technologies Inc (NYSE: ROP) is projected to report its quarterly earnings at $1.46 per share on revenue of $895.87 million.
- [By Monica Gerson]
Analysts expect Laboratory Corp. of America Holdings (NYSE: LH) to report its quarterly earnings at $1.96 per share on revenue of $2.19 billion. Laboratory Corp shares rose 0.64 percent to close at $121.77 on Friday.
Best Services Stocks To Own For 2016: Hertz Global Holdings Inc(HTZ)
Hertz Global Holdings, Inc., through its subsidiaries, engages in the car and equipment rental businesses worldwide. It operates in two segments, Car Rental and Equipment Rental. The Car Rental segment engages in the ownership and lease of cars. This segment operates car rental locations at or near airports, as well as in central business districts and suburban areas of cities in the United States, Canada, France, Germany, Italy, the United Kingdom, Spain, the Netherlands, Switzerland, Belgium, Luxembourg, the Czech Republic, the Slovak Republic, Australia, New Zealand, China, and Brazil. It also operates retail used car sales locations in the United States and France. The Equipment Rental segment rents earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, generators, pumps, small tools, compaction equipment, and construction-related trucks. In addition, this segment sells new equipment, and consumables, such as gloves and ha rdhats. The company also offers claim administration services, such as investigating, evaluating, negotiating, and disposing of various claims, including third-party, first-party, bodily injury, property damage, general liability, and product liability. Hertz Global serves various industries, such as construction, petrochemical, automobile manufacturing, railroad, power generation, and shipbuilding. The company was founded in 1918 and is headquartered in Park Ridge, New Jersey.
- [By Monica Gerson]
Hertz Global Holdings Inc (NYSE: HTZ) reported weaker-than-expected results for its first quarter and reaffirmed its FY16 earnings guidance. Hertz Global shares gained 2.17 percent to $8.95 in the after-hours trading session.
Best Services Stocks To Own For 2016: Natural Grocers by Vitamin Cottage, Inc.(NGVC)
Natural Grocers by Vitamin Cottage, Inc., incorporated on April 9, 2012, is a retailer of natural and organic groceries and dietary supplements. The Company offers a selection of natural and organic food, dietary supplements, body care products, pet care products and books. It operates in the natural and organic retail stores segment. The Company operates within the natural products retail industry, which includes conventional supermarkets, natural, gourmet and specialty food markets, mass and discount retailers, warehouse clubs, independent health food stores, dietary supplement retailers, drug stores, farmers’ markets, food cooperatives (co-ops), mail order and online retailers, and multi-level marketers. The Company offers a range of cosmetics, skin care, hair care, fragrance and personal care products. The Company’s offerings include hypo-allergenic and fragrance-free household products, including cleaning supplies, paper products, dish and laundry soap, and other comm on household products, including diapers. Its other products include books and handouts. The Company stocks approximately 400 titles in each store’s book department. Its titles cover various approaches to diet, lifestyle and health. It offers various handouts on health topics and dietary supplements.
The Company offers a selection of natural and organic grocery products with a focus on minimally processed and single ingredient products. The Company also carries a range of products associated with special diets, such as gluten free, vegetarian and non-dairy. The Company’s grocery products include bulk food and private label products; dry frozen and canned groceries; meats and seafood; dairy products and dairy substitutes; prepared foods; bread and baked goods, and beverages. Its bulk food and private label products include nuts, water, pasta, canned seafood, dried fruits, grains, granolas, honey, eggs, herbs, spices and teas. It also offers self-serve filtered dr inking water that is dispensed into one gallon or larger con! tainers provided by its customers. Its natural and organic dry, frozen and canned groceries include cereals, soups, baby foods, frozen entrees and snack items. In addition, it offers a selection of natural chocolate bars, and energy, protein and food bars. The Company offers dairy products, such as milk, eggs, cheeses, yogurts and beverages, as well as non-dairy substitutes made from almonds, coconuts, rice and soy. It also offers refrigerated prepared fresh food items, such as salads, sandwiches, salsa, humus and wraps. The Company’s dietary supplement department sells name-brand supplements, as well as a line of private label dietary supplements.
The Company offers its customers an average of approximately 20,700 stock keeping units (SKUs) of natural and organic products per store, including an average of approximately 6,500 SKUs of dietary supplements. It sells peanut and almond butters, freshly ground in-store under the Natural Grocers brand. The Company own s and operates approximately 110 stores in over 20 states, including Colorado, Arizona, Arkansas, Idaho, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, Texas, Utah, Washington and Wyoming. It also operates a food repackaging facility and distribution center in Colorado. The Company contracts with third-party manufacturers to produce groceries and dietary supplements under its private labels, which include the Natural Grocers and Vitamin Cottage brands.
The Company competes with Kroger, Safeway, Wal-Mart, Target, Whole Foods, The Fresh Market, Sprouts, Trader Joe’s, Sam’s Club and Costco.
- [By Lisa Levin]
Shares of Natural Grocers by Vitamin Cottage Inc (NYSE: NGVC) were down 32 percent to $13.90 as the company reported weak preliminary results for the second quarter.
Best Services Stocks To Own For 2016: Stage Stores, Inc.(SSI)
Stage Stores, Inc. operates as a specialty department store retailer in small and mid-sized towns and communities in the United States. Its merchandise portfolio comprises moderately priced brand name and private label apparel, accessories, cosmetics, footwear, and home goods. The company also offers merchandise direct-to-consumer through its e-commerce Website and send program. As of January 30, 2016, it operated 834 specialty department stores in 39 states and a direct-to-consumer channel under the BEALLS, GOODY’S, PALAIS ROYAL, PEEBLES, and STAGE nameplates. The company was founded in 1988 and is headquartered in Houston, Texas.
- [By Monica Gerson]
Stage Stores Inc (NYSE: SSI) shares fell 15.11 percent to $5.00 in pre-market trading after the company reported weaker-than-expected Q1 results and lowered its full-year outlook.