Related AMZN The Market In 5 Minutes: Friday, March 11, 2016 A Peak Into Amazon's Transportation & Logistics Trends PayPal Restructures Braintree Developer Program; Staff Cuts Reported (Investor’s Business Daily) Related ASH Barron's Picks And Pans: Ingersoll-Rand, Michael Kors And More Earnings Scheduled For January 25, 2016 The cover story in this weekend’s Barron’s makes a case for rebound in value stocks as growth stocks take a siesta. Barron’s offers 16 ways – from stocks to mutual funds – to play such a value rebound. Other featured articles include a special report on strategic beta ETFs.
Hot Railroad Companies To Buy For 2016: Citizens Financial Group, Inc.(CFG)
Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, N.A. and Citizens Bank of Pennsylvania that provide retail and commercial banking products and services in the United States. It operates through two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment focuses on retail customers and small businesses with traditional banking products and services, including checking, savings, home loans, student loans, credit cards, business loans, and financial management services. This segment also provides indirect auto finance for new and used vehicles through auto dealerships. The Commercial Banking segment provides various financial products and solutions, including loans, leases, trade financing, deposits, cash management, foreign exchange, interest rate risk management, corporate finance, and capital markets advisory capabilities. It focuses on small and middle-market comp anies, and serves government banking, not-for-profit, healthcare, technology, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. As of December 31, 2015, the company operated through 1,200 branches in 11 states across the New England, Mid-Atlantic, and Midwest regions, as well as online, telephone, and mobile banking platforms. It also maintains approximately 100 retail and commercial non-branch offices located in its banking footprint and in other states, and the District of Columbia. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.
- [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.
Hot Railroad Companies To Buy For 2016: JAKKS Pacific, Inc.(JAKK)
JAKKS Pacific, Inc. designs, develops, produces, and markets consumer products in the United States and internationally. The companys Traditional Toys and Electronics segment offers action figures and accessories based on Batman, Star Wars, and Nintendo franchises; toy vehicles and accessories under the Road Champs, Fly Wheels, and MXS names; electronics products, such as video games under the Spy Net, Plug It In & Play TV Games, Disney, and Duck Commander brands names; fashion and baby dolls, and accessories under Disney Frozen, Disney Princess, Disney Fairies, Cabbage Patch Kids, and Graco licenses, as well as plush, infant, and pre-school toys based on PBSs Daniel Tigers Neighborhood name; private label products; foot-to-floor ride-on toys, and tents and wagons based on Fisher Price, Kawasaki, and DC Comics; and pet products, including toys, consumables, and accessories under the JAKKS Pets and American Classics brand names. Its Role Play, Novelty and Seasonal Toys segment offers role and pretend play, dress-up, and novelty products for boys and girls based on Disney Frozen, Black & Decker, McDonalds, Dirt Devil, Disney Princess, Disney Fairies, and Dora the Explorer licenses; indoor and outdoor kids furniture, activity trays and tables, room d茅cor, kiddie pools, and seasonal products based on Crayola and Disney names, as well as pool floats under the Funnoodle name; Halloween and everyday costumes, and accessories under Spiderman, Iron Man, Toy Story, Sesame Street, Power Rangers, and Hasbro, Disneys Frozen, and Disney Princess brands; and balls and sport sets, and toy hoops under the Skyball, Wave Hoops, and Maui Toys brand names. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain, department, office supply, club, and toy specialty stores; and drug and grocery store chains and wholesalers. JAKKS P acific, Inc. was founded in 1995 and is based in Malibu, Cal! ifornia.
- [By Roberto Pedone]
One under-$10 toy player that’s trending very close to triggering a major breakout trade is Jakks Pacific (JAKK), which is a producer and marketer of children’s toys and other consumer products. This stock has been destroyed by the bears so far in 2013, with shares off sharply by 60%.
If you take a look at the chart for Jakks Pacific, you’ll notice that this stock has been downtrending badly for the last two months and change, with shares plunging from its high of $11.75 to its recent low of $4.82 a share. During that downtrend, shares of JAKK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of JAKK look like they might be ready to see an end to its downside volatility in the short-term if the recent lows can hold. I believe this due to the fact that JAKK has started to move sideways and trend within range of triggering a major breakout trade.
Traders should now look for long-biased trades in JAKK if it manages to break out above some near-term overhead resistance levels at $5.08 to $5.27 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 695,817 shares. If that breakout triggers soon, then JAKK will set up to re-test or possibly take out its next major overhead resistance levels at $5.68 to its 50-day moving average at $6.07 a share. Any high-volume move above its 50-day will then put $7 to $8 into range for shares of JAKK.
Traders can look to buy JAKK off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.87 to $4.82 a share. One can also buy JAKK off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Top Paper Stocks To Invest In Right Now: United Technologies Corporation(UTX)
United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. Its Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways; modernization products to upgrade elevators and escalators; and maintenance and repair services. The companys UTC Climate, Controls & Security segment provides heating, ventilating, air conditioning, and refrigeration solutions, such as controls for residential, commercial, industrial, and transportation applications. This segment offers electronic security products, including intruder alarms, access control systems, and video surveillance systems; and fire safety products; systems integration, video surveillance, installation, maintenance, and inspection services; and monitoring and response services. Its Pratt & Whitney segment supplies aircraft engines for commercial, mi litary, business jet, and general aviation markets; and provides aftermarket maintenance, repair, and overhaul, as well as fleet management services. The companys UTC Aerospace Systems segment provides electric power generation, power management, and distribution systems; air data, and flight sensing and management systems; engine control, electric, intelligence, surveillance, and reconnaissance systems; engine components; environmental control systems; fire and ice detection, and protection systems; propeller systems; cargo, actuation, and landing systems; aircraft aero structures, and lighting and seating products; space products and subsystems; and aftermarket services. United Technologies Corporation offers its services through manufacturers representatives, distributors, wholesalers, dealers, retail outlets, and sales representatives, as well as directly to customers. The company was founded in 1934 and is headquartered in Farmington, Connecticut.
- [By Matt Thalman]
One of the Dow’s biggest losers of the day was United Technologies (NYSE: UTX ) , which fell 2.16% this afternoon. The move came after news broke indicating that United Tech’s Pratt & Whitney division and Rolls-Royce were abandoning their possible joint venture plan. The two companies had previously discussed the idea of joining forces to build the next generation engine that would be used in both Airbus aircraft and Boeing planes. The venture would have given the companies essentially a monopoly on the engine market for narrow-body planes, which is what the two organizations realized, and why they ultimately decided not to move forward with the plan.
- [By Ben Levisohn]
The Dow Jones Industrial Average was dragged down by industrial stocks with exposure to the global economy–Caterpillar (CAT) and United Technologies (UTX) were two of the three biggest losers–and by Chevron’s (CVX) exposure to oil.
- [By Teresa Rivas]
RBC Capital Markets Robert Stallard and his team met with United Technologies (UTX) CFO Akhil Johri recently, but dont see any reason to get more constructive on the stock.
Stallard reiterated a Sector Perform rating and $108 price target on the shares Monday. He writes that he isnt as confident as the company is about the Geared Turbofan (GTF) project, and China will be a tough market for Otis.
Details from the note:
Although UTX remains confident that the ‘fixes’ for the GTF entry into service bugs are on track, these issues will not be fully addressed by June. The final software drop is not expected till September/October. Perhaps more importantly, the supplier issues that P&W is already seeing in the ramp, together with contingency plans that appear to be less advanced than CFM leave us worried that there is risk of the GTF profit headwind being more than the $1bn that UTX has estimated.
Otis remains a quality outlook, but management’s belated decision to maintain market share versus chasing margin in China is still working itself through the system. Akhil noted that Chinese OE pricing is always tough, but with 400 elevator OEMs in China, there is a risk of it getting tougher if the demand environment slows further. OEM demand in the rest of the world is actually quite robust (the opposite of China), but aftermarket pricing in Europe remains pressured with minimal inflation, and low cost service competitors.
United Technologies is down 0.1% to $101.91 in recent trading.
Hot Railroad Companies To Buy For 2016: Move Inc.(MOVE)
Move, Inc., together with its subsidiaries, operates an online network of Websites for real estate search, finance, and moving and home enthusiasts in North America. The company operates REALTOR.com, a Web site that offers property listings and neighborhood profiles; and consumers information and tools designed to assist the customers in understanding the value of their home, preparing the home for sale, listing and advertising the home, home affordability, the offer process, applying for a loan, understand the mortgage options available, closing the purchase, and planning the move. REALTOR.com provides showcase listing enhancements; display ad products; and a series of template Websites primarily for agents and brokers. The company also offers 8i solution, a Web-based customer relationship management software application for real estate agents. In addition, it provides Market Snapshot and Market Builder products that allow real estate professionals to offer real-time mult iple listing services market updates and trend analysis to their online prospects and clients; and Move Rentals that displays rental listings. Further, the company provides graphical display advertisements, text links, sponsorships, and directories for advertisers for mortgage companies, home improvement retailers, moving service providers, and other consumer product and service companies. Additionally, it offers quotes from moving companies, truck rental companies, and self-storage facilities, as well as other move-related information on Moving.com Website. Move, Inc. also operates as an online real estate listing syndicator and provider of performance reporting solutions for the purpose of helping to drive an online advertising program for brokers, real estate franchises, and individual agents. The company was formerly known as Homestore, Inc. and changed its name to Move, Inc. in June 2006. Move, Inc. was founded in 1993 and is headquartered in Westlake Village, Californ i a.
- [By Renu Singh]
Aruba Networks (ARUN) is a leading provider of next-generation network access solutions for mobile enterprise. The company’s Mobile Virtual Enterprise (MOVE) architecture unifies wired and wireless network infrastructures into one seamless access solution for corporate headquarters, mobile business professionals, remote workers and guests. This unified approach to access networks enables IT organizations and users to securely address the Bring Your Own Device (BYOD) phenomenon, dramatically improving productivity and lowering capital and operational costs.