Like most stocks, airlines are down Friday, in reaction to the surprise Brexit vote.
However, at this stage its hard to handicap how the ramifications of Brexit will play out says Raymond Jamess Savanthi Syth, who writes that at least near-term earnings shouldnt be too greatly affected, given the forward nature of ticket sales and fuel price pressures. Nonetheless, falling fuel costs are a double-edged sword, she warns, as it is likely to push out the unit revenue recovery needed for improving investor sentiment.
Here are the stocks with the greatest exposure, she writes:
Brexit comes as a surprise to the market and there is likely to be a rush to safety and away from cyclical stocks such as airlines. Among our coverage universe, Ryanair (RYAAY) and the U.S. Legacy airlines American Airlines (AAL), Delta (DAL), and United (UAL) are the most exposed. Also, the Latin American Airlines Copa (CPA), Gol (GOL), and Latam (LFL) are negatively exposed to potential strengthening of the U.S. dollar (USD).
Top Defense Companies To Own For 2016: Teck Resources Ltd(TCK)
Teck Resources Limited explores, develops, and produces natural resources in the Americas, the Asia Pacific, Europe, and Africa. Its principal products include copper, including copper concentrates and cathode copper; steelmaking coal; and refined zinc and zinc concentrates. The company also produces lead, molybdenum, gold, silver, germanium and indium, chemicals, and fertilizers. In addition, it holds interest in oil sands projects in the Athabasca region of Alberta; and owns or has interests in 13 mines in Canada, the United States, Chile, and Peru, as well as operates a metallurgical complex. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1906 and is headquartered in Vancouver, Canada.
- [By Ben Levisohn]
Given revised commodity deck forecasts (particularly for Steel and Gold) and improved Balance Sheet health (Steels, Precious and Industrials Metals) we are upgrading our ratings on several stocks in our coverage. We generally favor companies that have already initiated specific self-help, have low-cost assets and are less exposed to China supply and demand dynamics. In Steels, we have increased our rating from Hold to Buy on Nucor (NUE) and from Sell to Hold on US Steel. We have also upgraded Kinross Gold (KGC) to a Hold on valuation…On higher-than-peer valuations, we reiterate Sell-rated Coeur Mining (CDE), Franco-Nevada (FNV), Goldcorp (GG), Teck Resources (TCK) and highly leveraged AK Steel given preference to issue further equity if possible.
- [By Lisa Levin] Related TCK 7 Stocks Moving In Monday's After-Hours Session Stocks Hitting 52-Week Lows Teck Resources (TCK) Donald R. Lindsay on Q4 2015 Results – Earnings Call Transcript (Seeking Alpha) Related NRG Mid-Day Market Update: Crude Oil Jumps 11%; Nu Skin Shares Tumble Following Weak Results Mid-Morning Market Update: Markets Open Higher; Groupon Tops Q4 Expectations Weekly Leading Sectors Report (Seeking Alpha)
Toward the end of trading Friday, the Dow traded up 1.42 percent to 15,882.65 while the NASDAQ climbed 0.95 percent to 4,307.41. The S&P also rose, gaining 1.29 percent to 1,852.75.
- [By Wayne Duggan]
After a brief one-day flip to “sell,” Teck Resources Ltd (USA) (NYSE: TCK) opened Friday’s session with a more than 20 percent gain and triggered a brand new Parabolic SAR buy signal.
Top Defense Companies To Own For 2016: Monotype Imaging Holdings Inc.(TYPE)
Monotype Imaging Holdings Inc., through its subsidiaries, provides end-user and embedded text imaging solutions for use in print, Web, and mobile environments that enable people to create and consume content on various devices worldwide. It offers a collection of approximately 14,000 typefaces consisting of owned and licensed fonts; monotype, linotype, and ITC typeface libraries; custom font design services for corporate branding and identity purposes; and PCL 6 and Postscript 3 font collections. The company also provides font scaling, compression, and rasterizing technologies; text layout engines that enable consumer electronic devices to display multilingual text; printer driver kits, which enable printer manufacturers to create customized laser printer drivers; ColorSet imaging tools that give printer manufacturers control over color reproduction; and printer description languages. In addition, it offers Fontwise, a font license management solution that allows creative and business professionals to audit, manage, and purchase font licenses; FontExplorer, an X-font management software for managing and accessing fonts; and SpectraWorks, a graphical user interface development suite that consists a set of tools for developing embedded graphical user interfaces. Further, the company licenses its typefaces through various e-commerce Websites, including fonts.com, linotype.com, ascenderfonts.com, itcfonts.com, fontmarketplace.com, and webfonts.fonts.com. Its software technologies are deployed in a range of consumer electronics, including laser printers, digital copiers, mobile phones, navigation devices, digital cameras, e-book readers, digital televisions, set-top boxes, and consumer appliances, as well as in various software applications and operating systems. The company?s customers include consumer electronic device manufacturers, independent software vendors, and content creators. Monotype Imaging Holdings Inc. is headquartered in Woburn, M assachusetts.
- [By Lisa Levin]
Monotype Imaging Holdings Inc. (NASDAQ: TYPE) was down, falling around 20 percent to $19.86 as the company reported the intent to buy Olapic for around $130 million.
5 Best Freight Stocks To Buy For 2016: Express Scripts Holding Company(ESRX)
Express Scripts Holding Company operates as a pharmacy benefit management (PBM) company in the United States, Canada, and Europe. The company operates through two segments, PBM and Other Business Operations. The companys PBM segments products and services include clinical solutions to enhance health outcomes; specialized pharmacy care; home delivery pharmacy; specialty pharmacy, including the distribution of fertility pharmaceuticals that require special handling or packaging; and retail network pharmacy administration. It also provides benefit design consultation; drug utilization review; drug formulary management; an array of Medicare, Medicaid, and health insurance marketplace; administration of a group purchasing organization; and consumer health and drug information services. In addition, the company distributes specialty pharmaceuticals and medical supplies to providers, clinics, and hospitals; and offers consulting services, including design, implementation, and project management for pharmaceutical, biotechnology, and device manufacturers to collect scientific evidence to guide the use of medicines. It serves managed care organizations, health insurers, third-party administrators, employers, union-sponsored benefit plans, workers compensation plans, government health programs, providers, clinics, hospitals, and others. As of December 31, 2015, the company operated four automated dispensing home delivery pharmacies; one non-automated dispensing home delivery pharmacy; and one non-dispensing home delivery pharmacy maintained for business continuity purpose, as well as several non-dispensing order processing centers, patient contact centers, specialty drug pharmacies, and fertility pharmacies. The company was formerly known as Aristotle Holding, Inc. and changed its name to Express Scripts Holding Company in April 2012. Express Scripts Holding Company was founded in 1986 and is headqua rtered in St. Louis, Missouri.
- [By Monica Gerson]
Wall Street expects Express Scripts Holding Company (NASDAQ: ESRX) to post its quarterly earnings at $1.22 per share on revenue of $25.20 billion. Express Scripts shares rose 0.30 percent to close at $73.55 on Friday.
- [By Monica Gerson]
Express Scripts Holding Company (NASDAQ: ESRX) is expected to post its quarterly earnings at $1.22 per share on revenue of $25.20 billion.
Xerox Corp (NYSE: XRX) is estimated to report its quarterly earnings at $0.23 per share on revenue of $4.24 billion.