It’s never good news when a credit rating agency downgrades debt ratings for a company, so investors in General Electric Company (NYSE:GE) didn’t appear to have welcomed Fitch’s recent lowering of its rating on GE’s debt to A from A+ the day it was announced. That said, does it really matter in the grand scheme of things? Let’s take a look at the rationale for the ratings cut and whether it should concern for GE investors or not.
Fitch cuts GE’s debt rating
Companies rely on debt in order to function (even if it’s short-term financing for working capital needs), and a high rating tends to mean they pay less interest on that debt. So when a company’s debt rating is cut by a credit rating agency, it implies bond investors will require higher rates in order to compensate them for the extra risk. Therefore, in the purest sense, Fitch’s downgrade is a negative.
Power remains at the forefront of GE’s problems. Image source: GE Energy Connections.
Top Energy Stocks To Own Right Now: Southern Company (SO)
- [By Max Byerly]
OLD Republic International Corp boosted its holdings in Southern Co (NYSE:SO) by 16.4% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 894,500 shares of the utilities provider’s stock after buying an additional 126,000 shares during the period. Southern accounts for approximately 1.3% of OLD Republic International Corp’s holdings, making the stock its 29th largest holding. OLD Republic International Corp’s holdings in Southern were worth $39,948,000 as of its most recent SEC filing.
- [By Shane Hupp]
Southern Co (NYSE:SO) was the target of some unusual options trading on Thursday. Stock traders bought 32,959 call options on the company. This is an increase of approximately 1,587% compared to the typical volume of 1,954 call options.
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Electrical, water, telecom and gas utilities seemed to have adapted successfully. Southern Company (NYSE: SO), Verizon (NYSE: VZ), and AT&T (NYSE: T) are still private enterprises that rely on capital markets for financing yet abide by and peacefully coexist with strict yet reasonable government regulation. The Affordable Care Act (ACA), or Obamacare, though vilified by many, was a step in the right direction.
Top Energy Stocks To Own Right Now: Nuveen Connecticut Premium Income Municipal Fund(NTC)
- [By Logan Wallace]
Media stories about Nuveen Connecticut Premium Income Mun Fd (NYSE:NTC) have trended very positive recently, Accern Sentiment Analysis reports. The research firm identifies negative and positive news coverage by monitoring more than 20 million news and blog sources in real time. Accern ranks coverage of companies on a scale of -1 to 1, with scores closest to one being the most favorable. Nuveen Connecticut Premium Income Mun Fd earned a news sentiment score of 0.53 on Accern’s scale. Accern also gave news stories about the investment management company an impact score of 47.4041994466706 out of 100, meaning that recent news coverage is somewhat unlikely to have an impact on the stock’s share price in the next few days.
Top Energy Stocks To Own Right Now: Autodesk, Inc.(ADSK)
- [By Demitrios Kalogeropoulos]
Shares of Autodesk (NASDAQ:ADSK) outpaced the market last month, rising 20% compared to a 3% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
- [By Lisa Levin]
Check out these big penny stock gainers and losers
Zoe's Kitchen, Inc. (NYSE: ZOES) fell 27.8 percent to $10.45 in pre-market trading after the company reported weaker-than-expected earnings for its first quarter. The company also lowered its FY18 sales outlook from $358million-$368 million to $345 million-$352 million.
Hibbett Sports, Inc. (NASDAQ: HIBB) shares fell 15.6 percent to $24.50 in pre-market trading after the company reported weaker-than-expected results for its first quarter.
Rockwell Medical, Inc. (NASDAQ: RMTI) fell 15.5 percent to $5.02 in the pre-market trading session after the company disclosed that its President and CEO Robert Chioini was terminated.
BG Staffing Inc (NYSE: BGSF) shares fell 12.7 percent to $19.00 in pre-market trading after reporting a common stock offering.
8×8, Inc. (NASDAQ: EGHT) fell 9.3 percent to $20.00 in pre-market trading after reporting downbeat quarterly earnings.
Asia Pacific Wire & Cable Corporation Limited (NASDAQ: APWC) fell 7.7 percent to $2.35 in pre-market trading after rising 3.88 percent on Thursday.
Gap, Inc. (NYSE: GPS) shares fell 7.5 percent to $30.49 in pre-market trading after the company posted downbeat earnings for its first quarter on Thursday. Comps were up 1 percent in the quarter.
California Resources Corporation (NYSE: CRC) fell 6.4 percent to $33.91 in pre-market trading.
Buckle Inc (NYSE: BKE) fell 4.9 percent to $24.50 in pre-market trading following weak quarterly sales.
China Rapid Finance Limited (NYSE: XRF) shares fell 4.9 percent to $3.13 in pre-market trading after climbing 11.53 percent on Thursday.
Ross Stores, Inc. (NASDAQ: ROST) fell 4.8 percent to $78.98 in pre-market trading. Ross Stores reported upbeat earnings for its first quarter, but issued weak forecast for the current quarter.
Callon Petroleum Company (NYSE: CPE) shares fell 4.7 percent to $11.90 in pre-market trading after the company reported pricing of common
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The hot list:
Align Technology (ALGN) (+22% revenue growth estimate) Amazon (AMZN) (+22%) Autodesk (ADSK) (+27%) Cabot Oil & Gas (COG) (+34%) Concho Resources (CXO) (+30%) Facebook (FB) (+27%) Netflix (NFLX) (+25%) Pentair (PNR) (+22%) Vertex Pharmaceuticals (VRTX) (+22)
“Firms with high revenue growth should outperform the S&P 500 during the next 12 months as the index climbs by 6% to our target of 2875,” says Kostin.
- [By Logan Wallace]
Legal & General Group Plc lifted its position in shares of Autodesk, Inc. (NASDAQ:ADSK) by 0.6% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,021,212 shares of the software company’s stock after acquiring an additional 5,916 shares during the quarter. Legal & General Group Plc owned 0.46% of Autodesk worth $133,896,000 as of its most recent SEC filing.
- [By Daniel Miller]
General Motors (NYSE:GM), along with many automakers, is in an unusual position to hit two birds with one stone as the automotive industry evolves toward the future of driverless vehicles. That’s because it believes electric vehicles are the foundation for autonomous vehicles, and it’s rapidly developing technology for both. So far, a large hurdle to overcome is how to profitably make and sell EVs. On Thursday, GM, along with software company Autodesk, Inc. (NASDAQ:ADSK), gave us a glimpse at one small idea that could help do just that.
- [By Lisa Levin]
Companies Reporting After The Bell
Ross Stores, Inc. (NASDAQ: ROST) is projected to post quarterly earnings at $1.07 per share on revenue of $3.54 billion.
Autodesk, Inc. (NASDAQ: ADSK) is expected to post quarterly earnings at $0.03 per share on revenue of $557.65 million.
Gap, Inc. (NYSE: GPS) is projected to post quarterly earnings at $0.46 per share on revenue of $3.60 billion.
Quality Systems, Inc. (NASDAQ: QSII) is estimated to post quarterly earnings at $0.13 per share on revenue of $131.95 million.
Splunk Inc. (NASDAQ: SPLK) is expected to post quarterly loss at $0.09 per share on revenue of $297.67 million.
Shoe Carnival, Inc. (NASDAQ: SCVL) is projected to post quarterly earnings at $0.71 per share on revenue of $262.02 million.
Deckers Outdoor Corporation (NYSE: DECK) is expected to post quarterly earnings at $0.19 per share on revenue of $375.41 million.
Zoe's Kitchen, Inc. (NYSE: ZOES) is estimated to post quarterly loss at $0.01 per share on revenue of $105.30 million.
DXC Technology Company (NYSE: DXC) is expected to post quarterly earnings at $2.23 per share on revenue of $6.12 billion.
8×8, Inc. (NASDAQ: EGHT) is estimated to post quarterly loss at $0.05 per share on revenue of $76.93 million.
Viasat, Inc. (NASDAQ: VSAT) is projected to post quarterly loss at $0.45 per share on revenue of $424.46 million.
ePlus inc. (NASDAQ: PLUS) is estimated to post quarterly earnings at $1.01 per share on revenue of $1.60 billion.
Lions Gate Entertainment Corp. (NYSE: LGF.A) is expected to post quarterly loss at $0.04 per share on revenue of $1.04 billion.
Agilysys, Inc. (NASDAQ: AGYS) is estimated to post quarterly loss at $0.08 per share on revenue of $32.58 million.
Nutanix, Inc. (NASDAQ: NTNX) is estimated to post quarterly loss at $0.19 per share on revenue of $278.98 million.
Veeva Systems Inc. (NYSE: VEEV) is projected to post quarterly earnings at $0.31 per share on revenue