Buying stocks that are cheap and out of favor to capture extra return when they eventually recovera cornerstone of value investinghas worked for decades, but may no longer be a sound strategy due to shifts in how markets operate, according to Jeremy Grantham, founder of asset manager GMO.
Students of Benjamin Graham, author of The Intelligent Investor, widely considered the bible of value investing, rely on a phenomenon called mean reversion. Simply put, many stocks that become undervalued should eventually recover, while stocks that become overpriced should eventually return to earth.
Top 5 Cheap Stocks For 2018: Emerson Electric Company(EMR)
- [By Benzinga News Desk]
Former President George H.W. Bush has been hospitalized in Houston with an infection, just after attending the funeral of his wife, Barbara, a spokesman said Monday: Link
Redbook Reports US Retail Sales During First 2 Weeks Of Apr. Up 0.3% MoM, Up 2.8% YoY
USA S&P/CaseShiller House Price Index (MoM) for Feb Up 0.7% MoM
New home sales report for March will be released at 10:00 a.m. ET.
The Conference Board’s consumer sentiment index for April is schedule for release at 10:00 a.m. ET.
The Richmond Fed manufacturing index for April will be released at 10:00 a.m. ET.
The Treasury is set to auction 4-and 52-week bills at 11:30 a.m. ET.
The Treasury will auction 2-year notes at 1:00 p.m. ET.
Leerink upgraded Cardinal Health (NYSE: CAH) from Market Perform to Outperform
Berenberg upgraded Emerson Electric (NYSE: EMR) from Sell to Hold
Mizuho downgraded Skyworks (NASDAQ: SWKS) from Buy to Neutral
BMO downgraded Texas Roadhouse (NASDAQ: TXRH) from Outperform to Market Perform
This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here.
- [By Max Byerly]
Flippin Bruce & Porter Inc. decreased its holdings in Emerson Electric (NYSE:EMR) by 33.6% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 66,251 shares of the industrial products company’s stock after selling 33,574 shares during the quarter. Flippin Bruce & Porter Inc.’s holdings in Emerson Electric were worth $4,525,000 as of its most recent filing with the Securities & Exchange Commission.
- [By Stephan Byrd]
Here are some of the headlines that may have effected Accern Sentiment Analysis’s analysis:
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Stocks This Week: Wells Fargo, Emerson Electric and CSX (finance.yahoo.com) Emerson Electric (EMR) & Philips (PHG) Financial Review (americanbankingnews.com) Emerson Electric (EMR) Given Consensus Rating of “Hold” by Brokerages (americanbankingnews.com) Is It Time To Buy Emerson Electric Co (NYSE:EMR)? (finance.yahoo.com) Emerson Electric: An Autonomous Future (seekingalpha.com)
EMR has been the topic of a number of research reports. Zacks Investment Research raised shares of Emerson Electric from a “hold” rating to a “buy” rating and set a $78.00 price objective on the stock in a research note on Thursday, February 8th. UBS initiated coverage on shares of Emerson Electric in a research note on Monday, January 22nd. They issued a “buy” rating and a $73.26 price objective on the stock. Cowen reissued a “buy” rating and issued a $78.00 price objective on shares of Emerson Electric in a research note on Wednesday, April 18th. Stifel Nicolaus increased their price objective on shares of Emerson Electric from $79.00 to $80.00 and gave the company a “buy” rating in a research note on Thursday, May 3rd. Finally, Berenberg Bank raised shares of Emerson Electric from a “sell” rating to a “hold” rating and set a $69.00 price objective on the stock in a research note on Tuesday, April 24th. They noted that the move was a valuation call. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have given a buy rating to the stock. Emerson Electric has a consensus rating of “Hold” and a consensus price target of $73.00.
- [By Lisa Levin]
Analysts at Berenberg upgraded Emerson Electric Co. (NYSE: EMR) from Sell to Hold.
Emerson Electric shares fell 0.43 percent to close at $69.90 on Monday.
Top 5 Cheap Stocks For 2018: Wendy’s/Arby’s Group Inc.(WEN)
- [By Jeremy Bowman]
The chart below shows how McDonald’s compares with some of its closest peers based on its valuation and expected growth rate.
Company P/E Ratio 2-Year Expected EPS Growth Rate
McDonald’s (NYSE:MCD) 26.2 23.6%
Starbucks (NASDAQ:SBUX) 26.2 27.3%
Wendy’s (NASDAQ:WEN) 21.8 58.1%
Restaurant Brands International(NYSE:QSR) 21.4 41.9%
Yum! Brands(NYSE:YUM) 23.2 29.7%
Data source: Yahoo! Finance. EPS = earnings per share.
- [By Lisa Levin]
Companies Reporting After The Bell
Marriott International, Inc. (NASDAQ: MAR) is projected to post quarterly earnings at $1.22 per share on revenue of $5.72 billion.
Electronic Arts Inc. (NASDAQ: EA) is estimated to post quarterly earnings at $1.04 per share on revenue of $5.68 billion.
The Walt Disney Company (NYSE: DIS) is projected to post quarterly earnings at $1.68 per share on revenue of $14.05 billion.
Papa John's International, Inc. (NASDAQ: PZZA) is expected to post quarterly earnings at $0.62 per share on revenue of $441.73 million.
Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is projected to post quarterly earnings at $2.77 per share on revenue of $434.87 million.
Sun Life Financial Inc. (NYSE: SLF) is estimated to post quarterly earnings at $0.89 per share on revenue of $6.38 billion.
LATAM Airlines Group S.A. (NYSE: LTM) is expected to post quarterly earnings at $0.16 per share on revenue of $2.70 billion.
Liberty Global plc (NASDAQ: LBTYA) is projected to post quarterly earnings at $0.02 per share on revenue of $4.05 billion.
TripAdvisor, Inc. (NASDAQ: TRIP) is expected to post quarterly earnings at $0.16 per share on revenue of $362.11 million.
The Wendy's Company (NASDAQ: WEN) is projected to post quarterly earnings at $0.1 per share on revenue of $379.98 million.
A-Mark Precious Metals, Inc. (NASDAQ: AMRK) is expected to post quarterly earnings at $0.06 per share on revenue of $1.69 billion.
Monster Beverage Corporation (NASDAQ: MNST) is estimated to post quarterly earnings at $0.4 per share on revenue of $849.38 million.
Convergys Corporation (NYSE: CVG) is expected to post quarterly earnings at $0.4 per share on revenue of $670.10 million.
ScanSource, Inc. (NASDAQ: SCSC) is projected to post quarterly earnings at $0.7 per share on revenue of $875.91 million.
KAR Auction Services, Inc. (NYSE: KAR) is expected to post quarterly earnings at $0.76 per share on revenue of $923.13
- [By Shane Hupp]
Wendy’s (NASDAQ:WEN)‘s stock had its “buy” rating reiterated by equities researchers at Argus in a research note issued to investors on Thursday. They currently have a $16.34 price target on the restaurant operator’s stock, down from their prior price target of $19.00.
- [By Logan Wallace]
Wendy’s (NASDAQ:WEN) major shareholder Edward P. Garden sold 764,000 shares of the business’s stock in a transaction dated Tuesday, May 15th. The stock was sold at an average price of $16.53, for a total value of $12,628,920.00. Following the completion of the sale, the insider now directly owns 240,365 shares of the company’s stock, valued at approximately $3,973,233.45. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Major shareholders that own more than 10% of a company’s shares are required to disclose their sales and purchases with the SEC.
- [By ]
Throughout its history, Starbucks has mostly had a company-owned model for its retail locations, a strategy that is at odds with a trend of activist investors pushing fast food, restaurant and coffee companies to franchise locations out to raise cash for stock buybacks and debt reduction. In recent years, activists have targeted Jamba Juice (JMBA) , Potbelly (PBPB) , Jack in the Box (JACK) , Wendys Co. (WEN) , McDonald’s (MCD) and elsewhere. In addition, Starbucks has a one-share, one-vote structure, which can make it vulnerable to an activist investor seeking to elect dissident director candidates as it pursued the strategy.
Top 5 Cheap Stocks For 2018: Rent-A-Center Inc.(RCII)
- [By Max Byerly]
COPYRIGHT VIOLATION NOTICE: “Q1 2018 EPS Estimates for Rent-A-Center Increased by KeyCorp (RCII)” was first reported by Ticker Report and is the sole property of of Ticker Report. If you are viewing this article on another publication, it was illegally stolen and reposted in violation of United States and international trademark & copyright laws. The legal version of this article can be read at https://www.tickerreport.com/banking-finance/3350595/q1-2018-eps-estimates-for-rent-a-center-increased-by-keycorp-rcii.html.
- [By Ethan Ryder]
Rent-A-Center (NASDAQ:RCII) gapped down before the market opened on Wednesday . The stock had previously closed at $9.36, but opened at $9.43. Rent-A-Center shares last traded at $9.54, with a volume of 375675 shares changing hands.
- [By ]
Engaged Capital maintained large positions in Rent-A-Center (RCII) , TiVo (TIVO) , Hain Celestial (HAIN) , SunOpta and Jamba Inc. (JMBA) , all companies that have either previously been targeted by Welling or currently are in his cross-hairs.
- [By Logan Wallace]
AerCap (NYSE: AER) and Rent-A-Center (NASDAQ:RCII) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Top 5 Cheap Stocks For 2018: Kohl’s Corporation(KSS)
- [By ]
1. Kohl’s (NYSE: KSS)
This $10 billion-plus market cap department store chain’s stock is higher by over 17% in 2018. The company operates over 1100 department stores, an online commerce platform, 12 Fila Outlets, and three “Off/Aisle” clearance stores.
- [By ]
Macy’s (M) was downgraded by Morgan Stanley, which is hurting shares of Kohl’s (KSS) , according to TheStreet’s founder and Action Alerts PLUS Portfolio Manager Jim Cramer.
- [By Jeremy Bowman]
Below are some of investors’ favorite value stocks
Stock Ticker What the company does P/E ratio
General Motors (NYSE: GM) Designs, manufactures and distributes vehicles under the brands Buick, Cadillac, Chevrolet, GMC, Holden, and Wuling. 5.7
Apple (Nasdaq: AAPL) Designs and develops consumer electronics and software. 17.5
Delta Air Lines (NYSE: DAL) One of the world’s biggest global airline. 10.6
Verizon Communications (NYSE: VZ) Multinational telecoms company. 12.9
Kohl’s (NYSE: KSS) Department store chain. 12.2
Source: Yahoo! Finance.
Top 5 Cheap Stocks For 2018: International Business Machines Corporation(IBM)
- [By Motley Fool Staff]
Technology is a wide-ranging term: It has expanded far beyond what would have once been considered the typical tech stocks, including computer companies likeApple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM), and others. It’s not even fair to call any of these three brands computer companies anymore. They operate in a variety of other segments that are all part of the technology market, including but not limited to:
- [By Timothy Green]
Here’s an illustration of what Qualcomm was up against. Alphabet’s Google announced in early 2016 that it was developing an open server architecture that would support POWER chips from International Business Machines (NYSE:IBM). POWER was already supported across Google’s toolchain at that time, so the effort began even earlier. It took until March of this year for Google to announce that POWER chips had been deployed in its data centers, and that deployment is likely small at the moment.
- [By Money Morning Staff Reports]
The 1,610 cryptocurrencies on CoinMarketCap.com have a total market cap of $404 billion, making them worth more than Twitter Inc. (NYSE: TWTR), Snap Inc. (NYSE: SNAP), International Business Machines Corp. (NYSE: IBM), and Dell Technologies Inc. (NYSE: DVMT) combined.
- [By Anders Bylund, Timothy Green, and Steve Symington]
Anders Bylund (IBM): Big Blue is changing, and the transformation hurts. The technology giant has been shedding hardware operations in recent years in an effort to refocus on artificial intelligence, mobile software, and cloud computing.
- [By Jon C. Ogg]
International Business Machines Corp. (NYSE: IBM) is a company that just can’t get it right when it comes to earnings. Despite its ongoing effort to branch out with strategic imperatives, IBM’s core business of IT services continues to weigh on the company’s image. IBM might have been fine if the company could only get investors to focus on revenues and earnings, but there is a lot more to the story about why IBM is having its worst day in a few years.
- [By ]
The grandfather of information technology, IBM (NYSE: IBM), is trading at a 14% discount to its 52-week high, with a forward P/E of just 11.3 and an attractive 3.8% dividend yield.