Goldman Sachs analystKaren Holthouse and team add Starbucks (SBUX) to the firm’s Conviction List following last week’s earnings report, arguing that the coffee purveyor’s comparable-store sales are “not broken.” They explain:
We reiterate our Buy rating and add the shares to the Americas Conviction List given our belief that comps can re-accelerate into F4Q, and favorable valuation vs. the S&P (1.6x relative P/E, when the low end of SBUXs long- term range is 1.67x median S&P 3-year EPS growth) leaves room for multiple expansion as a result. We still view F17 consensus as marginally too high (EPS of $2.18 or 19% growth excl. the 53rd week vs. our estimate of $2.12 or 15% growth); however, we believe commentary regarding at least 15% growth on the F3Q earnings call was sufficient to reset investor expectations for costs associated with incremental partner/technology investments…
Top 10 Life Sciences Stocks To Invest In 2017: SanDisk Corporation(SNDK)
Sandisk Corporation designs, develops, and manufactures NAND flash memory storage solutions that are used in various consumer electronics products. The company offers removable cards under the SanDisk Ultra, SanDisk Extreme, and SanDisk Extreme PRO brands; embedded products under the iNAND brand; universal serial bus (USB) flash drives under the Cruzer brand; digital media players under the Sansa brand; solid state drives under the Lightning brand; and wafers and memory components. Its removable card products are used in a range of consumer electronics devices, including mobile phones, digital cameras, gaming devices, and laptop computers; and embedded flash products are used in mobile phones, tablets, ultrabooks, eReaders, global positioning system devices, gaming systems, imaging devices, and computing platforms. The company also provides high-capacity storage solutions, such as solid-state drives that are used in lieu of hard disk drives. It offers its products to the m obile phone, consumer electronics, and computing end markets through original equipment manufacturers, distributors, and retail sales channels in the Americas, the Asia Pacific, Europe, the Middle East, Africa, and Japan. The company was formerly known as SunDisk Corporation and changed its name to SanDisk Corporation in August 1995. SanDisk Corporation was founded in 1988 and is headquartered in Milpitas, California.
- [By Michael Flannelly]
Early on Friday, analysts at RBC Capital boosted the near-term estimates on SanDisk Corporation (SNDK), a manufacturer of data storage products, because a fire at SK Hynix’s factory should lead to favorable pricing over the next two quarters.
“We see a favorable pricing environment as a result of SK Hynix’s fire, which threatens to curtail NAND output as the company likely re-purposes production back toward DRAM, resulting in lower than expected incremental NAND wafers vs. company’s plan of 170K/WPM,” RBC Capital analyst Freedman said. “Consequently, we see stronger pricing through EoY before SK Hynix ramps NAND toward normalized prod’t levels as DRAM resources are restored/replaced.”
The analysts maintain an “Outperform” rating on SDNK and still see shares reaching $76. This price target suggests a 26% upside to the stock’s Thursday closing price of $60.08. Furthermore, they boosted SanDisk’s 2013 EPS estimates from $4.82 to $4.95.
SanDisk shares were up a fraction during pre-market trading on Friday. The stock is up 38.11% year-to-date.
Top 10 Life Sciences Stocks To Invest In 2017: World Energy Solutions Inc(DE)
World Energy Solutions, Inc. provides a range of energy management solutions to commercial and industrial businesses, institutions, utilities, and governments. It offers technology-enabled solutions, such as online audits of facilities to identify retrofit options and project management services for retrofit implementation, as well as cross-selling opportunities for commodity auctions. The company primarily focuses on retail and wholesale energy procurement clients via its online auction platforms, including the World Energy Exchange, the World Green Exchange, and the World DR Exchange. The World Energy Exchange enables energy consumers in North America to negotiate for the purchase or sale of electricity, natural gas, and other energy resources from energy suppliers who have agreed to participate on auction platform. The World Green Exchange enables buyers and sellers to negotiate for the purchase or sale of environmental commodities, such as renewable energy certificates , verified emissions reductions, and certified emissions reductions. The World DR Exchange enables curtailment service providers and energy consumers to negotiate in structured auction events designed to yield price transparency. The company was formerly known as World Energy Exchange, Inc. World Energy Solutions, Inc. was founded in 1996 and is headquartered in Worcester, Massachusetts.
- [By Ben Levisohn]
Few Bright Spots Across Global Construction Equipment Markets: Not surprising, in light of Deere’s (DE) recent comments, our conversations withCaterpillar dealers in North America have pointed to increasing levels of price competition. This includes a growing prevalence of short-term leases being offered, which we believe Deere is not alone in facing residual value risk. Even as the Yen has strengthened over the past year, we have heard of stepped-up levels of discounting from dealers representing Japanese OEMs in the past six months. This is especially the case for dealers in regions with high dependence on oil and gas, as excess equipment has built-up on lots and in rental fleets alongside declining levels of drilling activity.
- [By Shauna O’Brien]
On Thursday, Morgan Stanley reported that it has begun coverage on agriculture company Deere & Company (DE).
The firm has initiated coverage on DE with an “Underweight” rating and $72 price target. This price target suggests a 14% decline from the stock’s current price of $83.63.
Analyst Nicole DeBlase noted, we forecast 8% downside to 2014e consensus, as we are concerned about recent deterioration in the used equipment market, augmented by a negative margin mix shift, as evidenced by our proprietary survey work. Our $72 PT implies 14% downside, and we project a 2-to-1 negative risk/reward ratio.
Deere & Company shares were down 98 cents, or 1.16%, during Thursday morning trading. The stock has been mostly flat YTD.
- [By Chad Fraser]
These factors are driving both growth and price inflation in the sector, and there are a number of ways for investors to take advantage. For example, you could buy shares of genetically modified seed makers like Monsanto (NYSE: MON) or equipment manufacturers like Deere & Co. (NYSE: DE).
- [By Scott Rubin]
Gainers included The GEO Group (NYSE: GEO), which jumped almost 22 percent a day after plunging nearly 40 percent on news that the U.S. government is ending its private prison program. The stock remains down sharply from previous levels. Agricultural giant Deere & Company (NYSE: DE) climbed almost 14 percent on Friday after a strong Q3 earnings report. Losers included Pure Storage Inc (NYSE: PSTG), which fell 13 percent on a downgrade, and AK Steel Holding Corporation (NYSE: AKS), which lost around 10 percent on the day.
Best Healthcare Equipment Stocks To Buy For 2017: Reinsurance Group of America, Incorporated(RGA)
Reinsurance Group of America, Incorporated engages in reinsurance business. It offers individual and group life and health insurance products, including term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products, as well as asset-intensive and financial reinsurance products. The company also provides reinsurance for mortality, morbidity, and lapse risk associated with products; and reinsurance for investment-related risks, as well as develops and markets technology solutions for the insurance industry. It serves life insurance companies in the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia Pacific. Reinsurance Group of America, Incorporated was founded in 1973 and is headquartered in Chesterfield, Missouri.
- [By Benzinga News Desk]
Morgan Stanley downgraded Chipotle (NYSE: CMG) to Equal-Weight.
UBS downgraded AMC Networks (NASDAQ: AMCX) to Sell.
Citi upgraded Sealed Air (NYSE: SEE) to Buy.
Goldman Sachs upgraded Reinsurance Group (NYSE: RGA) to Buy.
- [By David Sterman]
My favorite insurers: AIG (NYSE: AIG) (which I discussed a few months ago), Protective Life (NYSE: PL) and Reinsurance Group of America (NYSE: RGA).
Top 10 Life Sciences Stocks To Invest In 2017: Take-Two Interactive Software, Inc.(TTWO)
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead names through developing sequels; offering downloadable episodes, and content and currency; and releasing titles for smartphones and tablets. The company also develops brands in other genres, including the L.A. Noire, Bully, and Manhunt franchises. In addition, it publishes various entertainment properties across platforms and a range of genres, including shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, and XCOM Enemy Unknown series, as well as Borderlands and Evolve franchises; and various sports simulation titles, including its flagship NBA 2K series, a basketball video game and the WWE 2K series. The companys portfolio of brands also comprise Carnival Games, Rockstar Games Presents Table Tennis, Sid Meier’s Pirates!, Spec Ops, and Top Spin. Its products are designed for console gaming systems, such as Sony’s PlayStation 3 and PlayStation 4, and Microsoft’s Xbox 360 and Xbox One; handheld gaming systems; and personal computers comprising smartphones and tablets. The company delivers its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was founded in 1993 and is headquartered in New York, New York.
- [By Jon C. Ogg]
Take-Two Interactive Software Inc. (NASDAQ: TTWO) may not be seeing much ofa follow-on gain for its shares after the release of the notorious Grand Theft Auto 5. The reason is that shares had at one point almost doubled from the lows of the last year in anticipation. What is impressive, make that more than impressive,is that this video game launch set a record of $800 million at the launch day, and now its sales in just three days have crossed over the $1 billion mark in just three days.
- [By Ahiza Garcia]
The suit against Take-Two Interactive (TTWO) is being brought by Solid Oak Sketches, a group that holds the rights to the tattoos.
Solid Oak Sketches obtained the rights from five tattoo artists by agreeing to pay royalties based on the use of the tattoos, according to the suit.
- [By CNNMoney Staff]
What’s moving: Shares of Take-Two Interactive (TTWO) jumped after the company said its latest game, Grand Theft Auto V, raked in $800 million in worldwide retail sales on the first day of its release Tuesday.
- [By Rich Bieglmeier]
Take-Two Interactive Software Inc. (TTWO) is probably going to steal the show on Wall Street today. After Wednesday’s close, the Multimedia & Graphics Software maker announced “Grand Theft Auto V” generated $800 million in global sales in the first 24 hours. Humpday yeah!
Top 10 Life Sciences Stocks To Invest In 2017: Polycom Inc.(PLCM)
Polycom, Inc. provides communications equipment that enables businesses, telecommunications service providers, governmental and educational institutions, and healthcare customers to conduct video, voice, data, and Web communications. The company offers network infrastructure, including conferencing infrastructure, distributed media applications, management applications, recording and streaming security, and remote access for universal video collaboration; unified communications (UC) group systems, which include immersive telepresence, group video, and group voice systems that enable geographically dispersed individuals to communicate; UC personal devices comprising desktop video devices, desktop voice, and wireless local area network products that extend HD voice, video, and content to desktops, home offices, mobile users, and branch sites. It also provides various services, including assessments, implementation services, network consulting services, usage and adoption ser vices, wireless services application integration, and advanced project management services. The company sells its products through a network of channel partners, including distributors, value-added resellers, system integrators, communications services providers, and retailers in North America, Central America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Polycom, Inc. was founded in 1990 and is headquartered in Pleasanton, California.
- [By Lisa Levin]
Polycom, Inc. (NASDAQ: PLCM) revealed Friday that private equity firm, Siris Capital Group, LLC and its affiliates, have submitted a unilaterally binding offer to buy all outstanding shares for $12.50 per share in cash.
Top 10 Life Sciences Stocks To Invest In 2017: BioCryst Pharmaceuticals Inc.(BCRX)
BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops small-molecule pharmaceuticals that block key enzymes involved in infectious diseases, cancer, and inflammatory diseases. It uses structure-based drug design, which incorporates multiple scientific disciplines, including biology, crystallography, medicinal chemistry, and computer to develop new therapeutic candidates. The company has three novel late-stage compounds in development, which include Peramivir, a neuraminidase inhibitor for the potential treatment of influenza; BCX4208, a purine nucleoside phosphorylase (PNP) inhibitor for gout; and Forodesine, a PNP inhibitor for cutaneous T-cell lymphoma (CTCL) and chronic lymphocytic leukemia (CLL). Peramivir is being developed under a contract from the Biomedical Advanced Research and Development Authority within the United States Department of Health and Human Services. Forodesine has been granted orphan drug status by the FDA for thr ee indications, which include T-cell non-Hodgkin?s lymphoma, including CTCL; CLL and related leukemias, including T-cell prolymphocytic leukemia, adult T-cell leukemia, and hairy cell leukemia; and for treatment of B-ALL. The FDA has also granted fast track status to the development of forodesine for the treatment of relapsed or refractory T-cell leukemia, and special protocol assessment from the FDA for forodesine to conduct a pivotal clinical trial in CTCL with an oral formulation. The company announced the initiation of a Phase 2b study of BCX4208 as add-on therapy in gout patients who have not responded to allopurinol therapy alone. BioCryst Pharmaceuticals utilizes crystallography and structure-based drug design to discover additional compounds and to progress others through pre-clinical and early development to address the unmet medical needs of patients and physicians. The company was founded in 1986 and is headquartered in Durham, North Carolina.
- [By Monica Gerson]
BioCryst Pharmaceuticals (NASDAQ: BCRX) shares gained 5.98% to $6.91 in the pre-market session after the company has been awarded contract by the National Institute of Allergy and Infectious Diseases to develop BCX4430 for the treatment of Marburg virus disease.
Top 10 Life Sciences Stocks To Invest In 2017: Humana Inc.(HUM)
Humana Inc. offers various health and supplemental benefit plans in the United States. Its Government segment consists of beneficiaries of government benefit programs; and operates in three lines of businesses, including Medicare, Military, and Medicaid. The Medicare program provides hospital and medical insurance benefits to persons of age 65 and over and some disabled persons under the age of 65. The Military program offers health insurance coverage to the dependents of duty military personnel, and to retired military personnel and their dependents. The Medicaid program is a federal program that is state-operated to facilitate the delivery of health care services primarily to low-income residents. The Commercial segment consists of members enrolled in its medical and specialty products marketed to employer groups and individuals. This segment provides health maintenance organization products that offer prepaid health insurance coverage to its members through a network of independent primary care physicians, specialty physicians, and other health care providers; preferred provider organization products, which are offered primarily to employer groups and individuals; and administrative services only products that are provided to employers who self-insure their employee health plans. It also offers various specialty products, including dental, vision, and other supplemental products, as well as disease management services. As of December 31, 2010, Humana Inc. had approximately 10.2 million members enrolled in medical benefit plans; and approximately 7.1 million members enrolled in specialty products programs. The company markets its products through various channels comprising television, radio, the Internet, telemarketing, and direct mailings. In addition, it has strategic alliances with Wal-Mart Stores, Inc.; State Farm; and United Services Automobile Association to market its products. The company was founded in 1961 and is headquartered in Louisville, Kentucky.
- [By Ben Levisohn]
The Wall Street Journal reported that government regulators are pushing back against Anthem’s (ANTM) purchase of Cigna (CI). California, however, seems to have few issues with the proposed combination of Aetna (AET) andHumana (HUM). Leerink’s Ana Gupte explains:
- [By Ben Levisohn]
Clinton 15 stock basket (DBUSCLNT): UnitedHealth Group (UNH), Humana (HUM), McKesson (MCK), Aecom (ACM), Quanta Services (PWR), ExxonMobil (XOM), Alcoa (AA), NextEra Energy (NEE), Cree (CREE), First Solar (FSLR), Facebook (FB), Netflix (NFLX), Prudential Financial (PRU), Citigroup (C), Union Pacific (UNP).
Top 10 Life Sciences Stocks To Invest In 2017: Yahoo! Inc.(YHOO)
Yahoo! Inc., together with its subsidiaries, provides search and display advertising services on Yahoo properties and affiliate sites worldwide. The company offers Yahoo Search that serves as a guide for users to discover information on the Internet; Yahoo Mail, which connects users to the people and content; and Yahoo Messenger, an instant messaging service, which enables users to connect, communicate, and share experiences in real-time. It also provides digital content products, including Yahoo News, which gives users to discover, consume, and engage around the news, content, and video; Yahoo Sports, which serves audiences of sports enthusiasts; Yahoo Finance that offers a range of financial data, information, and tools; Yahoo Lifestyle to engage users passionate about style and fashion; and Tumblr, which provides a Web platform and mobile applications on iOS and android to create, share, and curate content, as well as Tumbl r messaging that enables users to engage with other users that share their same interests and passions. In addition, the company provides advertiser products, such as Yahoo Gemini, a marketplace for search and native advertising; and BrightRoll, which offers a suite of media-agnostic tools to enable advertisers, publishers, and partners connect with users across ad formats and devices. Further, it offers advertising formats; and digital advertising products, such as Yahoo native, Yahoo video, Yahoo premium, and Yahoo audience ads. Additionally, the company offers Yahoo Mobile Developer suite consisting of Flurry Analytics, Yahoo App Publishing, Yahoo App Marketing, and Tumblr In-App Sharing tools to measure, monetize, advertise, and improve their apps. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California.
- [By Igor Novgorodtsev]
Google has updated its installation policies for AdWords affiliates such as browser toolbar makers which became active for most companies early this year. This change led to a number of articles on Seeking Alpha making a short case for AVG and Perion as well as some rebuttals from me and other authors. The biggest flaw in the "short case" was a failure to recognize that Google is not the only game in town. While Google commands a dominant 68% search market share, Bing (MSFT) with 18% and Yahoo (YHOO) with 11% are desperate to keep pace and do not impose equally onerous terms on its affiliates. Conduit dumped Google for Bing almost three years ago for US users. I speculate that the new company will become a predominantly Bing shop (Yahoo also runs on Bing with revenue sharing) removing remaining headwinds from Google policy changes, which put a dent in Perion’s and Conduit’s revenue this year. If Perion switches to Conduit’s search page and toolbar, the switch to Bing for US users would become immediate and automatic.
- [By Ben Levisohn]
Goldman Sachs strategist David Kostin and team note that stocks with high operating leverage–Amazon.com (AMZN), Whole Foods Market (WFM), ConocoPhillips (COP), Yahoo! (YHOO), and FedEx (FDX) among them–will outperform if the U.S. economy strengthens:
Top 10 Life Sciences Stocks To Invest In 2017: Advance Auto Parts Inc(AAP)
Advance Auto Parts, Inc., through its subsidiaries, engages in the automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. It offers automotive parts, including alternators, batteries, belts and hoses, brakes and brake pads, chassis parts, climate control parts, clutches, driveshafts, engines and engine parts, ignition parts, lighting, radiators, starters, spark plugs and wires, steering and alignment parts, transmissions, water pumps, and windshield wiper blades; and accessories, such as air fresheners, automotive paints, anti-theft devices, emergency road kits, floor mats, ice scrapers, mirrors, seat and steering wheel covers, and vent shades. The company also provides chemicals comprising antifreeze, brake and power steering fluid, car washes and waxes, freon, fuel additives, and windshield washer fluid; oils, transmission fluids, and other automotive petroleum products; and battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics, and oil and battery recycling services, as well as loaner tool programs. In addition, it sells products online through AdvanceAutoParts.com and Worldpac.com. The company serves do-it-for-me, or Commercial, and do-it-yourselfcustomers, as well as independently-owned operators. As of January 2, 2016, it operated a total of 5,171 stores and 122 branches; and served approximately 1,300 independently-owned Carquest stores in the United States, Canada, Puerto Rico, and the U.S. Virgin Islands. Advance Auto Parts, Inc. was founded in 1929 and is headquartered in Roanoke, Virginia.
- [By Monica Gerson]
Advance Auto Parts, Inc. (NYSE: AAP) shares 11.02 percent to $128.21 in pre-market trading. Advance Auto Parts reported weaker-than-expected quarterly results and announced the resignation of CFO Mike Norona.
- [By Ben Levisohn]
We wondered if Advance Auto Parts (AAP) just had a bad quarter or something more serious, whether there was beauty in being boring for Home Depot (HD), and just how risky Ford Motors’ (F) autonomous driving plan might be.
Top 10 Life Sciences Stocks To Invest In 2017: Sonoco Products Company(SON)
Sonoco Products Company (Sonoco), incorporated on May 10, 1899, is a manufacturer of industrial and consumer packaging products and a provider of packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. The Company has approximately 330 locations in over 30 countries.
The Company’s Consumer Packaging segment’s operations consist of approximately 90 plants across the world. The segment’s products and services include round composite cans; shaped rigid paperboard containers; fiber caulk/adhesive tubes; aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, jars, jugs, cups and trays, and printed flexible packaging, rotogravure cylinder engraving and global brand management. Its products are catered to various markets, such as snacks, nuts, cookies, crackers, hard-baked goo ds, desserts, candy, gum, frozen concentrate, powdered and liquid beverages, non-carbonated beverages, ready-to-drink products, powdered infant formula, coffee, refrigerated dough, frozen entrees, processed food, vegetables, fruit, seafood, poultry, soup, pasta, dairy, sauces, dips, fresh-cut produce, pet food, home and personal care, and adhesives.
Display and Packaging
The Company’s Display and Packaging segment’s products and services include point-of-purchase displays; custom packaging; retail packaging, including printed backer cards, thermoformed blisters and heat sealing equipment; fulfillment; primary package filling; supply chain management, and paperboard specialties. The operations in this segment consists of approximately 30 plants around the world including the United States, Poland, Mexico and Brazil. The segment’s products are used in automotive, beverages, candy, electronics, personal care, baby care, food, cosmetics, fragrances, hos iery, office supplies, toys, home and garden, medical, over-! the-counter drugs, sporting goods, hospitality industry and advertising.
Paper and Industrial Converted Products
The Company’s Paper and Industrial Converted Products segment provides the primary raw material for the Company’s fiber-based packaging. The segment’s products and services include recycled paperboard, chipboard, tubeboard, lightweight corestock, boxboard, linerboard, corrugating medium and specialty grades; paperboard tubes and cores; molded plugs; reels, and collection, processing and recycling of old corrugated containers, paper, plastics, metal, glass and other recyclable materials. The segment’s products are used in converted paperboard products, spiral winders, beverage insulators, construction, film, flowable products, metal, paper mills, shipping and storage, tape and label, textiles, wire and cable, municipal, residential, customers’ manufacturing and distribution facilities.
The Pro tective Solutions segment’s products and services include custom-engineered, paperboard-based and expanded foam protective packaging and components, and temperature-assured packaging. The segment’s products are used in consumer electronics, automotive, appliances, medical devices, temperature-sensitive pharmaceuticals and food, heating and air conditioning, office furnishings, fitness equipment, promotional and palletized distribution.
- [By Ben Levisohn]
Deutsche Bank’s Debbie Jones and team contend that Sonoco’s (SON) sale of its plastic-container business to Australia’s Amcor is a sign that M&A is in the offing. They explain why:
Sonoco announced (9/1) that it is selling its Rigid Plastics Blow Molding operations to Amcor (AMC.AU) for $280M. The transaction price represents a multiple of ~8.0x LTM EBITDA. The business had annual sales of ~$210M and consisted of six production sites in the US and one in Canada. Blow molding operations represented ~10% of Sonocos Consumer Packaging segment sales and EBITDA. The transaction is expected to close in Q4. We expect the proceeds to be used to for M&A focused in flexible packaging, thermoforming and temperature-assured packaging.
We dont believe Sonoco considered its blow molding operations essential to its growth strategy. This standalone business is also more capital intensive compared to some of its other plastic packaging businesses and SON held a small position in the overall market. Ultimately, the company decided it wants to focus its capital in higher growth platforms. We do not expect the divestment to reduce resin buying scale for Sonoco’s remaining assets given different resin buying. Note that with the divestiture of blow molding and the Canton closures plant (divested in Feb. 2015), this makes the ~$100M reels business the last standalone business in the portfolio, but we do not expect this to be divested in the near-term unless cash is needed for much larger M&A.
Shares of Sonoco have gained 1.3% to $52.49 at 2:12 p.m. today.