Susquehannas Pablo Zuanic takes a look at consumer food companies in the wake of Brexit, and writes that Coca-Cola Enterprises (CCE), Mondelez (MDLZ) and SodaStream (SODA) have the most exposure to the British pound and euro, which are falling today.
For bargain hunters, he recommends Mondelez over CCE, given soda taxes and the fact that Cokes (KO) 48% stake means it wont be acquired. But overall he says that M&A in Europe is not more likely, as companies with plenty of U.S. dollar assets will have fertile hunting ground for acquisitions.
In general, he writes that consumers have to be selective, with an eye toward how this vote could impact the U.S. election:
Self-help and NA exposure now even more attractive. We think our guiding thesis of buying self-help stories with mainly NA exposure becomes even more relevant in this new context. Our top picks are, not coincidentally, Kraft Heinz (KHC), Treehouse Foods (THS), and Molson Coors (TAP). Re our other Positive-rated stock BUD, we remind investors after the SAB deal NA is less than 30% of EBITDA pro forma. Even taking the aggressive guidance of 16% synergies and cost savings (of target company revenues) the EPS accretion may be in the mid/high teens.
top stock to invest in: Match Group, Inc.(MTCH)
- [By Jeremy Bowman]
In its first full year as a publicly traded company, online dating conglomerateMatch Group (NASDAQ:MTCH) surged past expectations, climbing 26%.
A number of factors led to its standout performance, including blockbuster growth from Tinder, strong operating leverage, and consistently beaten earnings estimates. Let’s take a closer look at how things played out in 2016.
- [By Peter Graham]
Small cap dating site stock Match Group Inc (NASDAQ: MTCH), which was spun off from media and Internet stock IAC/InterActiveCorp (NASDAQ: IAC) and is a peer or remaining dating stock Spark Networks Inc (NYSEMKT: LOV), is the eight most shorted stock on theNASDAQ with short interest of 43.96% according to Highshortnterest.com.
top stock to invest in: Allstate Corporation (The)(ALL)
- [By Anders Bylund, Chuck Saletta, and Brian Feroldi]
Read on to see why they pickedAllstate(NYSE:ALL),EPAM Systems(NYSE:EPAM), andUniversal Display(NASDAQ:OLED).
Image source: Getty Images.
- [By Shauna O’Brien]
Credit Suisse reported on Thursday that it has raised its estimates on insurance company The Allstate Corporation (ALL).
The firm has raised its price target on ALL to $62. This price target suggests a 16% upside from the stock’s current price of $52.23. Analysts currently have an “Outperform” rating on ALL.
Credit Suisse has also boosted estimates on ALL as its management is increasing returns.
Allstate shares were up 32 cents, or 0.62%, during Thursday morning trading. The stock is up 30% YTD.
- [By Michael Flannelly]
Wells Fargo analysts see a number of upside catalysts for The Allstate Corporation (ALL), plus a positive trend for automobile insurers as a whole. As such, the analysts upgraded the insurance provider on Thursday.
The analysts upgraded ALL from “Market Perform” to “Outperform” and boosted its valuation range from $48-$52 to $58-$62. This new valuation range suggests a 16% to 24% upside to the stock’s Wednesday closing price of $50.11.
“We are upgrading the shares of Allstate to Outperform from Market Perform on the basis of several fundamental reasons unique to the company as well as several positive, emerging structural trends for auto insurers in general,” Wells Fargo analyst John Hall stated. “We do not believe that the market has yet paid for potential unit growth within Allstate’s branded standard book of auto insurance, something we envision occurring over the next 6-12 months.”
As for some of the positive personal auto insurance sector trends, Hall noted, “These would include shifting demographics toward a safer driving population mix (more old drivers and fewer young drivers), changing driving habits particularly among millennials, a safer U.S. personal auto fleet, rising car sales pointing to positive symbol shift as well as industry conditions encouraging market share consolidation.”
Wells Fargo boosted Allstate’s 2013 EPS estimates from $4.62 to $4.85 and 2014 EPS estimates from $4.85 to $5.20.
Allstate shares were mostly flat during pre-market trading on Thursday. The stock is up 24.74% year-to-date.
top stock to invest in: SVB Financial Group(SIVB)
- [By Lisa Levin]
In trading on Friday, financial shares slipped by 0.55 percent. Meanwhile, top losers in the sector included Greenhill & Co., Inc. (NYSE: GHL), down 11 percent, and SVB Financial Group (NASDAQ: SIVB), down 8 percent.
- [By Jon C. Ogg]
SVB Financial Group (NASDAQ: SIVB) has a Buy rating at the firm, and this top pick among the bank stocks has a price objective of $190 versus a current $170.38 close. The parent of Silicon Valley Bank has a consensus analyst price target of $176.19, and its 52-week range is $77.87 to $176.77.
top stock to invest in: Huntington Ingalls Industries, Inc.(HII)
- [By WWW.MONEYSHOW.COM]
Huntington Ingalls Industries (HII) is the largest repairer and ship builder for the U.S. Navy and U.S. coast guard, giving the company a near monopoly on these government contracts (which is why their return on equity is north of 27%).
- [By Rich Smith]
Huntington Ingalls’ (NYSE:HII) Ford-class supercarrier seems one likely suspect — and at $14 billiona pop, this gigantic aircraft carrier offers a big potential target for Trump’s next tweet storm.
- [By Rich Smith]
As details about the Pentagon’s plan have emerged, it’s become clear that this will be a sizable program, amounting to perhaps $1 trillion in spending over 30 years — not just to upgrade the Minuteman missiles, but also to buy new B-21 stealth bombers from Northrop Grumman (NYSE:NOC)and have General Dynamics (NYSE:GD) and Huntington Ingalls (NYSE:HII) design an entirely new class of ballistic missile submarines (to be known as the “Columbia class.”)