3M (NYSE:MMM) has become a beacon of American industry in its 111 years of existence. The stock has long been considered a solid “buy and hold” and dividend play for investors. After announcing impressive second quarter earnings on Thursday, the company looks poised for continued earnings and revenue growth. Let’s use our CHEAT SHEET investing framework to decide whether 3M is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.
C = Catalysts for the Stock’s Movement
3M announced stellar second quarter results on Thursday. The company reported earnings per share of $1.71 — beating analysts’ estimates of $1.70, and 3 percent higher than the previous year’s quarterly EPS. Additionally, sales rose across the board, with increasing revenue growth in the Health Care, Industrial, Consumer, and Safety and Graphics divisions. However, revenues from the Electronics and Energy division decreased on a year-over-year basis.
Most notable from the report was 3M’s substantial free cash flow of $1.285 billion. The company has a strong return on invested capital at 19.07 percent*, and has used its cash flow to fund several recent acquisitions and internal research and development. The company bought Ceradyne, an industrial ceramics and ballistics armor company, late last year. So far, the acquisition has proven successful: Ceradyne sales grew 4.6 percent year-over-year, adding to 3M’s Industrial division’s 6.6 percent revenue growth for the quarter.
Top 10 Cheap Stocks To Buy Right Now: S&P GSCI(GD)
General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors’ Opinion:
- [By Rich Smith]
The Department of Defense awarded nine separate defense contracts Monday, worth $1.6 billion in total. Among these, two contracts went to General Dynamics (NYSE: GD ) and Australian shipbuilder Austal (NASDAQOTH: AUTLY ) , its partner in building half the U.S. Navy’s fleet of Littoral Combat Ships, or LCSes.
- [By Marc Bastow]
Defense contractor General Dynamics (GD) raised its quarterly dividend 10.7% to 62 cents per share, payable May 9 to shareholders of record as of April 11. The increase is the 17th consecutive annual dividend raise for GD.
GD Dividend Yield: 2.23%
Top 10 Cheap Stocks To Buy Right Now: Oracle Corporation(ORCL)
Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.
- [By Rob DeFrancesco]
Rob DeFrancesco: Yeah, it did come up. It was a strong Q4 earnings season and a lot of these names, particularly the momentum names in software, did well. Workday, which provides cloud-based human resources and financials software competes with legacy vendors like Oracle (ORCL) and SAP (SAP).
- [By Jake L’Ecuyer]
Oracle (NYSE: ORCL) was down, falling 2.88 percent to $37.72 after the company reported weaker-than-expected fiscal third-quarter earnings. Oracle’s quarterly profit surged to $2.57 billion, or $0.56 per share, versus a year-ago profit of $2.5 billion, or $0.52 per share. Its revenue jumped to $9.31 billion versus $8.96 billion. Its adjusted profit came in at $0.68 per share.
- [By Lisa Levin]
Oracle (NYSE: ORCL) shares tumbled 3.44% to $37.51 after the company reported weaker-than-expected fiscal third-quarter earnings. Oracle’s quarterly profit surged to $2.57 billion, or $0.56 per share, versus a year-ago profit of $2.5 billion, or $0.52 per share. Its revenue jumped to $9.31 billion versus $8.96 billion. Its adjusted profit came in at $0.68 per share.
Top 10 Cheap Stocks To Buy Right Now: Freeport-McMoran Copper & Gold Inc.(FCX)
Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.
- [By Ben Levisohn]
Indonesia–and its desire to make more off of its natural resources–has been a thorn in the side of both Freeport-McMoRan Copper & Gold (FCX) and Newmont Mining (NEM) this year. That could be changing.
- [By Ben Levisohn]
Pick a mining stock, any mining stock, and there’s a very good chance that its future earnings are highly dependent on commodity prices. Rio Tinto (RIO) and Vale (VALE)? That’s iron ore. Freeport McMoRan Copper & Gold (FCX)? That’s copper. Alcoa (AA)? That’s aluminum.
Top 10 Cheap Stocks To Buy Right Now: Ford Motor Credit Company(F)
Ford Motor Company primarily develops, manufactures, distributes, and services vehicles and parts worldwide. It operates in two sectors, Automotive and Financial Services. The Automotive sector offers vehicles primarily under the Ford and Lincoln brand names. This sector markets cars, trucks, and parts through retail dealers in North America, and through distributors and dealers outside of North America. It also sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, this sector provides retail customers with a range of after-sale vehicle services and products in the areas, such as maintenance and light repair, heavy repair, collision repair, vehicle accessories, and extended service contracts under the Ford Service, Lincoln Service, Ford Custom Accessories, Ford Extended Service Plan, and Motorcraft brand names. The Financial Services sector offers vari ous automotive financing products to and through automotive dealers. It offers retail financing, which includes retail installment contracts for new and used vehicles; direct financing leases; wholesale financing products that comprise loans to dealers to finance the purchase of vehicle inventory; loans to dealers to finance working capital, purchase real estate dealership, and/or make improvements to dealership facilities; and other financing products, as well as provides insurance services. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan.
- [By WWW.DAILYFINANCE.COM]
Joe Raedle/Getty Images DETROIT — U.S. auto sales went out like a lion in March. Automakers said Tuesday that new car and truck sales picked up speed halfway through the month, culminating in a strong final weekend. Toyota (TM) dealers had their two best sales weekends of the year at the end of the month, the company said. “We’re optimistic that momentum will spring us into April,” said Bill Fay, who manages the Toyota division in the U.S. Industry sales rose 6 percent to 1.5 million vehicles, far outpacing analyst expectations. The sales pace was the fastest since November, according to Autodata Corp. March sales helped rescue what was otherwise a disappointing first quarter. Analysts had predicted flat growth for the first three months of this year after harsh weather in January and February hurt sales. But March helped pull first quarter sales up 1.4 percent. The month saw some big gainers. Chrysler’s sales rose 13 percent on demand for Ram pickups and the new Jeep Cherokee SUV. Subaru’s sales were up 21 percent; its new Forester SUV jumped 53 percent to nearly 14,000. Toyota’s sales rose 5 percent. Sales of the Prius hybrid fell 16 percent, as stable gas prices caused consumer interest in efficient vehicles to wane. But demand for its pickups and SUVs was strong. General Motors’ (GM) sales were up 4 percent despite a series of safety recalls of older model vehicles. Buick saw double-digit gains because of its new Encore SUV, and sales of the Chevrolet Silverado pickup rose 7 percent. Jessica Caldwell, a senior analyst with the car shopping site Edmunds.com, said buyer consideration for GM brands on Edmunds’ Web site has remained steady despite the recall crisis, which is currently the subject of several federal investigations. “Shoppers still see it as a trusted brand,” she said. Nissan’s sales were up 8 percent. Ford’s (F) rose 3 percent, with a 5-percent gain for the F-Series pickup compensating for lower car sales. Volkswagen’s sales fel
- [By Ben Eisen]
The final U.S. Markit purchasing managers index came in at 55.5 in March, down from 57.1 in February. Construction spending in February notched up 0.1%. Chrysler reported 13% sales growth in March while Ford Motor Company (F) sold 3% more units.
- [By Ben Levisohn]
Weekend news likely prompts a negative reaction Monday, but Tues-Wed could go either way. GM stock could respond well if March share meets/beats expectations and if GM were to make adequate statements explaining concerns and offering remedies (OnStar can play role here). A sub-17% share and/or more negative revelations could pressure the stock further. We enter the week with a buy-on-weakness approach but acknowledge that this latest escalation adds ST market share risk. Thus, we also look to add positions in Buy-rated Ford (F) (possible ST share gains) and [American Axle & Manufacturing (AXL)] (pulled back + Q2 schedules appear intact).
- [By Bloomberg]
David McNew/Getty Images General Motors (GM), after months of studying ignition-switch failures in the Chevrolet Cobalt, canceled a proposed fix in 2005, when a project engineering manager cited high tooling costs and piece prices, according to documents obtained by U.S. congressional investigators. A separate opportunity to address the defect was passed over by the National Highway Traffic Safety Administration in 2007, when it opted not to open a formal defect investigation even after an agency official had said a probe was justified, according to an interview between current NHTSA officials and staff members of the House Energy and Commerce Committee. Those decisions and this year’s recall of 2.6 million small cars for faulty ignition switches are set to be the main focus of congressional hearings Tuesday and Wednesday. GM Chief Executive Officer Mary Barra and acting NHTSA Administrator David Friedman are being asked to explain the handling of years of complaints about stalling cars and disabled air bags that have now been linked to the switches and tied to 13 deaths. “Lives are at stake, and we will follow the facts where they take us as we work to pinpoint where the system failed,” Representative Fred Upton, the chairman of the House Energy and Commerce Committee, said in a statement Sunday. GM opened an engineering inquiry about the Cobalt ignition switch in November 2004, after customers complained the engine “can be keyed off with knee while driving,” according to a problem-tracking system document obtained by House investigators. Four months later, the Cobalt project engineering manager rejected a key slot change, citing cost and long lead times. “None of the solutions presents an acceptable business case,” according to a GM memo cited by the House committee. ‘Early Warning’ The chief of NHTSA’s Defects Assessment Division emailed other officials in the Office of Defects Investigation in September 2007, saying owner complaints from 2005 an
Top 10 Cheap Stocks To Buy Right Now: Cloud Peak Energy Inc(CLD)
Cloud Peak Energy Inc., through its subsidiaries, engages in coal mining operations in the Powder River Basin of the United States. It produces sub-bituminous steam coal with low sulfur content for electric utilities and industrial customers. The company owns and operates Antelope surface coal mine located to the south of Gillette, Wyoming; the Cordero Rojo surface coal mine located to the south of Gillette, Wyoming; and the Spring Creek surface coal mine located in Montana. It also owns a 50% interest in the Decker surface coal mine located in Montana. As of December 31, 2010, it had approximately 970 million tons of proven and probable reserves. The company was founded in 1993 and is headquartered in Gillette, Wyoming.
- [By Aaron Levitt]
Simply put, the coal stocks trio of Peabody Energy (BTU), Alpha Natural Resources (ANR) and Cloud Peak Energy (CLD) could be some of the biggest bargains out all energy stocks.
- [By Reuben Brewer]
A ready supplier
Malaysia, which is a coal export powerhouse, is going to be there to help fill the void. However, Cloud Peak Energy (NYSE: CLD ) notes that Malaysian coal is at the lower end of the quality spectrum, particularly compared to its U.S. Powder River Basin coal. That’s a positive sign for Cloud Peak’s export hopes, particularly as China looks to clean up the most obvious pollution problems related to coal. Right now, Cloud Peak exports about 5% of its coal, but it plans to increase that as U.S. ports increase their capacity.
- [By Ben Levisohn]
Cloud Peak Energy (CLD) has gained 3.1% to %15.03 after it was upgraded to Buy from Hold at Stifel.
Novatris (NVS) has dropped 1.2% to $74.48 after it was downgraded to Neutral from Overweight at JP Morgan.
Top 10 Cheap Stocks To Buy Right Now: Uranium Resources Inc.(URRE)
Uranium Resources, Inc. engages in the acquisition, exploration, development, and mining of uranium properties, using the in situ recovery or solution mining process. It owns developed and undeveloped uranium properties in South Texas; and undeveloped uranium properties in New Mexico. The company?s primary customers include utilities who utilize nuclear power to generate electricity. Uranium Resources, Inc. was founded in 1977 and is based in Lewisville, Texas.
- [By Bryan Murphy]
If you listened to my bullish calls from December 27th and/or February 24th about Uranerz Energy Corp. (NYSEMKT:URZ), Uranium Resources, Inc. (NASDAQ:URRE), and Ur-Energy Inc. (NYSEMKT:URG), then congratulations – you’re now up as much as 50%, depending on when you stepped into a trade, and which stock you chose. Now get out. See, as well as URZ and URG have done and are doing (URRE not so much), it looks like the short-term rally I first spotted a little more than a couple of months ago has fully run its course, and now these names are setting up a pullback.
- [By James E. Brumley]
Well, I’ll give myself an A for effort, but a C- for timing. But, I can bump that C- up to a B+ if my intuition is right as we head into the last few days of 2013 and the first few of 2014. What I’m talking about is a bullish commentary I penned back on November 26th regarding Uranerz Energy Corp. (NYSEMKT:URZ), Uranium Resources, Inc. (NASDAQ:URRE), and Ur-Energy Inc. (NYSEMKT:URG). All three stocks were perking up, and more than that, the buzz surrounding URG, URRE, and URZ was getting louder. More often than not, when the fervor and bullish action and chatter reaches the levels they had reached a month ago, an explosion is right around the corner.
Top 10 Cheap Stocks To Buy Right Now: Advance Auto Parts Inc(AAP)
Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.
- [By Matt Thalman]
Competitor Advanced Auto Parts (NYSE: AAP ) also announced earnings this morning, which resulted in shares of the company increasing by 12.74% today. Revenue at Advanced rose 6% year over year to hit $1.41 billion, but that was below the $1.43 billion analysts were expecting. Despite that miss, earnings per share came in at $0.94, which was $0.13 higher than Wall Street had predicted. The company maintained a strong gross margin at 49.8%, but that fell from 49.9% during the same quarter last year, which was explained as a side effect from a higher mix of commercial sales, an area that has lower margins. Lastly, management forecasted that 2014 fiscal year earnings per share will fall within a range from $7.20-$7.40, while analysts had that number pinned at just $7.03 per share.
- [By Ning Jia]
Reuters Description: Advance Auto Parts, Inc. (Advance), incorporated on August 1, 2001, is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States. The Company operates in two segments: Advance Auto Parts (AAP), and Autopart International (AI). The AAP segment is comprised of its store operations, which operate under the trade names Advance Auto Parts and Advance Discount Auto Parts.The AI segment consists of the operations of Autopart International, Inc. which operates under the Autopart International trade name. The Company’s stores carry a product line for cars, vans, sport utility vehicles and light trucks.The Company serves both do-it-yourself (DIY), and do-it-for-me (Commercial), customers. Its Commercial customers consist primarily of delivery customers for whom the Company delivers product from its store locations to it Commercial customers’ places of business, including in dependent garages, service stations and auto dealers. On December 31, 2012, the Company acquired B.W.P. Distributors, Inc.
- [By Ben Eisen]
Given that outlook, he sees ten stocks in the consumer discretionary sector that qualify as bargains at the moment, including some of the very stocks that are expecting downbeat holiday results. They include: Advance Auto Parts Inc. (AAP) , AutoNation, Inc. (AN) , Bed Bath & Beyond Inc. (BBBY) , Carmax, Inc. (KMX) , Nordstrom Inc. (JWN) , PetsMart, Inc. (PETM) , Ross Stores, Inc. (ROST) , Staples, Inc. (SPLS) , Target Corp. (TGT) , and Urban Outfitters, Inc. (URBN) .
Top 10 Cheap Stocks To Buy Right Now: CVS Corporation(CVS)
CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.
- [By Bloomberg]
Matthew Staver/Bloomberg via Getty Images Cerberus Capital Management’s $9 billion deal to merge Safeway (SWY) with Albertsons is a bet that a larger supermarket chain can better fend off an attack on the grocery business by big-box stores and online retailers. Safeway, the No. 2 grocery-store operator in the U.S., agreed Thursday to be acquired by Cerberus’s Albertsons for about $40 a share. The deal will unite two chains with locations across the country — especially in the West — and narrow Kroger’s (KR) lead as the nation’s top supermarket company. Cerberus, a private-equity firm that has spent years investing in the supermarket industry, will use the new company’s heft to combat a growing array of threats. Big-box retailers such as Walmart Stores (WMT) and warehouse clubs are increasingly targeting grocery customers, using their size and breadth of products to attract shoppers. Online food sellers and delivery services, including Amazon.com (AMZN), also have made neighborhood supermarkets less essential than before. “This merger will improve our competitive position,” Safeway Chief Executive Officer Robert Edwards, who will be in charge of the combined company, said Thursday on a conference call. “Our customers will benefit from significant cost saving synergies and a stronger management team.” Safeway shares fell as much as 6.3 percent to $37 in extended trading, reflecting concerns the deal may not close at the current price. The shares had increased 21 percent this year through the close of regular trading Thursday, outpacing the 1.6 percent gain of the Standard & Poor’s 500 Index. Blackhawk Network As part of the agreement, investors will get $32.50 a share in cash, plus stock in Safeway’s gift-card unit Blackhawk Network Holdings (HAWK), according to a statement Thursday. Safeway, based in Pleasanton, Calif., had said last month that it was in talks about a sale of the company. Assuming a diluted share count of about 235 million shares,
- [By GURUFOCUS]
Healthcare stocks in the Fund had a strong fourth quarter and year. CVS (CVS)’s 26% performance for the quarter is reflective of the fact that 10,000 Americans turn 65 every day and will for the next 15 years. Businesses that are able to serve this growing segment with improving service, innovation, technology, product quality and value should continue to win.
- [By Grace L. Williams]
CVS Caremark (CVS) has found the perfect prescription for stock market gains after reporting earnings results this morning.
For the quarter ended Dec. 31, CVS reported adjusted EPS of $1.12, up from 96 cents a year ago and ahead of analyst expectations of $1.11. Revenue rose to $32.8 billion from $31.4 a year prior and forecasts for sales of $32.6 billion. CVS also disclosed that it opened 60 new retail drugstores and closed one during the period.
Last week, CVS made headlines on the announcement that it would end tobacco sales and the market reacted accordingly. In a Barron’s Take, Teresa Rivas wrote, “With the number of U.S. smokers on the decline and regulation on the rise, CVS will likely more than make up for lost sales with public goodwill and a boost to its health-care brand. It also gets first mover advantage on a ban that may eventually have been forced on it.”
Raymond James analyst John Ransom notes that CVS has a healthy future:
First-quarter 2014 adjusted EPS guidance was actually raised to $1.03-$1.06 (up seven cents at the midpoint), suggesting better-than-expected near-term trends versus prior outlook. Net-net, fourth quarter capped another solid year out of CVS, with today’s stock price reaction likely less tied to the report itself and more focused on the…tobacco headwind offsets as well as initial comments with regard to the 2015 selling season and the retail competitive landscape (promotional activity high?).
Shares of CVS have advanced 2.7% to $68.74 at 3:0 p.m., trailing Walgreen’s (WAG) 5.3% rise to $63.87 but besting Rite Aid’s (RAD) 1.5% gain to $5.72.
- [By Sue Chang and Saumya Vaishampayan]
CVS Caremark Corp. (CVS) shares fell 0.9%. CVS said it would stop selling cigarettes and tobacco products in stores by Oct. 1. The change is estimated to cost the company $2 billion in annual revenues or 17 cents a share, but CVS said it won’t affect its 2014 per-share earnings guidance.
Top 10 Cheap Stocks To Buy Right Now: Wendy’s/Arby’s Group Inc.(WEN)
The Wendy’s Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy’s International, Inc., operates as a franchisor of the Wendy’s restaurant system. As of December 26, 2011, the Wendy’s system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1884 and is headquartered in Dublin, Ohio.
- [By Victor Selva]
The firm is currently Zacks Rank # 3 – Hold, and it also has a longer-term recommendation of “Underperfom.” For investors looking for a Zacks Rank # 1 – Strong Buy, Ignite Restaurant Group Inc. (IRG) and The Wendy’s Company (WEN) could be the options.
- [By Rick Aristotle Munarriz]
Taco Bell/AP There will be a new player in the escalating battle for breakfast on Thursday when Yum Brands’ (YUM) Taco Bell rolls out its new morning menu, and the stakes are huge. McDonald’s (MCD) is the name that most people associate with breakfast fast food. Ever since it introduced the Egg McMuffin in 1972, the world’s largest burger flipper has set the bar for convenient morning meals for people on the go. The Waffle Taco will likely be Taco Bell’s signature breakfast item. The taco-shaped waffle wrapped around a sausage patty, scrambled eggs and cheese turned heads when it was tested in select locations late last year. However, it’s just one of the many items wooing commuters. Naturally there will be eggy breakfast burritos and grilled tacos with either bacon or sausage. The A.M. Crunchwrap gives a morning spin to the Crunchwrap Supreme by blanketing hash browns, scrambled eggs and either bacon or sausage in a pressed and folded flour tortilla. Tough Competition McDonald’s is struggling these days, but it’s still a fierce competitor when it comes to the first meal of the day. Just ask Burger King (BKW), which finds itself copying McDonald’s more often than not, including hotcakes served with sausage and the Egg McMuffin. Just ask Wendy’s (WEN), which retreated from its nationwide breakfast menu a couple of years ago. It’s starting to work its way back in by introducing breakfast in some markets. Even Starbucks (SBUX) has been feeling the threat of McDonald’s as the burger giant beefs up its McCafe line, offering guests drive-thru convenience that many Starbucks locations cannot. Earlier this month Starbucks ran a three-day promotion where it offered free coffee to anyone ordering a breakfast sandwich. It was meant to remind customers that it offers more than just java. Breakfast seems like an easy decision for a fast food leader. Who wouldn’t want to milk more revenue out of a location by extending its operating hours? However, with Wendy’s coming
- [By Wallace Witkowski]
Shares of Wendy’s Co. (WEN) rose 0.8% to $9.07 on moderate volume after the fast-food chain announced it had completed the sale of 104 restaurants in the markets of Phoenix, Los Angeles/Palm Springs, Hawaii and Albuquerque.
- [By Mike Deane]
After the closing bell on Monday, The Wendy’s Company (WEN) announced that it had completed its “System Optimization” initiative, which involved selling 104 of its restaurants to franchisees.
Wendy’s has been attempting to create a more predictable revenue stream by selling 418 company-run restaurants in 13 U.S. markets. Since 2013, Wendy’s has seen $235 million in income from these sales. Through the company’s “System Optimization” initiative, it expects to have a higher operating margin and stronger free cash flow; the company also expects these latest moves to bring a higher quality to its earnings.
Wendy’s president and CEO, Emil Brolick, had the following comments about the company’s latest moves: ”We are proud of our team that has diligently worked to complete the sale – faster than our original plan — of the 13 total markets to excellent franchise organizations that are fully committed to building the Wendy’s brand through restaurant reimaging, new development and other growth initiatives. This is an important step for the future of our business …”
WEN stock finished the day down 17 cents, or 1.85%, but the stock was slightly higher in after hours trading. YTD, the company’s stock is up 4.44%.
WEN Dividend Snapshot
As of Market Close, March 24 2014
Click here to see the complete history of WEN dividends.
Top 10 Cheap Stocks To Buy Right Now: Compass Minerals Intl Inc(CMP)
Compass Minerals International, Inc., through its subsidiaries, produces and markets inorganic mineral products primarily in North America and the United Kingdom. The company operates in two segments, Salt and Specialty Fertilizer. The Salt segment produces salt and magnesium chloride for use in road deicing and dust control, food processing, water softeners, pool salt, and agricultural and industrial applications. This segment also purchases potassium chloride and sells as a finished product. The Specialty Fertilizer segment produces and markets sulphate of potash crop nutrients and industrial grade sulfate of potash for use in the production of specialty fertilizers for vegetables, fruits, potatoes, nuts, tobacco, and turf grass. The company also produces and markets consumer deicing and water conditioning products, ingredients used in consumer and commercial food preparation, and other mineral-based products for consumer, agricultural, and industrial applications. In ad dition, Compass Minerals provides records management services to businesses located in the U.K. The company operates rock salt mines in Goderich, Ontario, Canada; and Winsford, Chesire, the United Kingdom. It primarily serves producers of intermediate chemical products used in the production of vinyls and other chemicals, and pulp and paper, as well as water treatment and other industrial uses. The company markets its products through direct sales personnel, contract personnel, and a network of brokers or manufacturers? representatives. Compass Minerals International, Inc., formerly known as Salt Holdings Corporation, was founded in 1993 and is headquartered in Overland Park, Kansas.
- [By Brendan Mathews]
Compass Minerals (NYSE: CMP ) is a sleepy producer of a boring product: rock salt. But it has a strong competitive advantage. It owns the world’s largest rock salt mine, which luckily is conveniently located near the major deicing markets of the Great Lakes region. This combination of a great mining resource and ideal location provide the company with a wide, crocodile-filled competitive moat.
- [By Alex Planes]
PotashCorp’s difficulty sustaining its pricing power is underscored by recent reports from sulfate of potash (SOP) producer Compass Minerals (NYSE: CMP ) , which charged a hefty premium of almost $300 per ton against Potash Corp’s prices for muriate of potash. Efforts to move away from SOP sales seem to be the right choice — PotashCorp peer Intrepid Potash’s SOP sales fell by 37%, while the average price received has slumped nearly 14% in the last quarter. Even ore miner BHP Billiton has recently jumped into the fertilizer industry with a $2.6 billion build-out of a potash mine in Canada, which is all but certain to produce further downward pressure on potash prices.
- [By Roberto Pedone]
Compass Minerals (CMP) is a producer of minerals, including salt, sulfate of potash specialty fertilizer and magnesium chloride. This stock closed up 3.4% at $75.60 in Wednesday’s trading session.
Wednesday’s Volume: 913,000
Three-Month Average Volume: 212,481
Volume % Change: 315%
From a technical perspective, CMP gapped higher here off its recent low of $64.24 with heavy upside volume. This stock recently gapped down sharply from around $90 to $64.24 with heavy downside volume. That move pushed shares of CMP into extremely oversold territory, since the stock’s current relative strength index reading is 25.78. Oversold can always get more oversold, but it’s also an area where a stock can experience a powerful bounce higher from. Shares of CMP are now starting to move within range of triggering a near-term breakout trade. That trade will hit if CMP manages to take out its gap down day high of $78.20 and then once it clears its 200-day moving average at $79.14 with high volume.
Traders should now look for long-biased trades in CMP as long as it’s trending above Wednesday’s low of $73.07 or $72.50 and then once it sustains a move or close above those breakout levels with volume that’s near or above 212,481 shares. If that breakout hits soon, then CMP will set up to re-fill some of its previous gap down zone that started near $90.