On Wednesday, General Mills (GIS) will report earnings results for the fiscal third quarter. The cereal maker is expected to do okay. According to Earnings.com, net income is projected to be around 56 cents per share. If the company hits that number, then it will represent a decent bottom-line growth rate.
The stock has a couple things going in its favor. The 52-week high is currently set at $38.98. Shares closed on Monday at a price of $37.12, not far from the peak. In addition, the dividend yield of 3% is attractive.
General Mills: A Brief Look Before Earnings
Continue reading General Mills: A Brief Look Before Earnings
Analyst Calls: AET, BMY, DVN, GLW, K, MRK, MT, PETM, SPLS, WY ...
Analyst Upgrades
- Aetna (AET) to buy from neutral at Goldman.
- Kellogg (K) to buy from neutral at UBS.
- PetSmart (PETM) to outperform from market perform at JMP Securities.
- NetApp (NTAP) and Scripps Networks (SNI) to buy from hold at Wunderlich.
- Thoratec (THOR) to buy from hold at Auriga.
- ArcelorMittal (MT) to overweight from neutral at HSBC.
- Bristol-Myers (BMY) to outperform from neutral at Cowen.
- Eaton Vance (EV) to neutral from sell at Ticonderoga.
- Adtran (ADTN) to buy from underperform at BofA/Merrill.
Continue reading Analyst Calls: AET, BMY, DVN, GLW, K, MRK, MT, PETM, SPLS, WY ...
Earnings from Clorox and Kellogg
Two companies devoted to consumer products released earnings this week. One makes items used for cleaning, the other makes goods that you can actually eat.
We'll start with the cleaning-item concern. The Clorox Company (CLX), manufacturer of the iconic laundry bleach, issued results for its fiscal second quarter earlier today. At the time of this writing, shares were higher by 2.4% to a quote of $65.26. Volume was strong. The 52-week low for the stock is $59.07 and the 52-week high is $69. The one-year chart is, well ... not that great.
Analyst Calls: COMV, FSLR, K, LDK, NGD, PTEN, RIMM, STD, TIF ...
Analyst Upgrades
- Tiffany (TIF) to outperform from perform at Oppenheimer.
- Kellogg (K) to outperform from market perform at Wells Fargo.
- Citizens Republic (CRBC) to outperform from market perform at FBR Capital.
- Research in Motion (RIMM) to equal weight from underweight at Morgan Stanley.
- MWI Veterinary Supply (MWIV) and Elster (ELT) to overweight from neutral at Piper Jaffray.
- Paetec Holding (PAET) and Patterson-UTI Energy (PTEN) to buy from hold at Citigroup.
- New Gold (NGD) to outperform from market perform at BMO Capital.
- Aviat Networks (AVNW) to buy from hold at Needham.
- Abiomed (ABMD) to buy from hold at Jefferies.
- Animal Health (AHII) to outperform from neutral at RW Baird.
- PNM Resources (PNM) to overweight from neutral at JPMorgan.
Continue reading Analyst Calls: COMV, FSLR, K, LDK, NGD, PTEN, RIMM, STD, TIF ...
Kellogg Reports Soggy Earnings Results
Tuesday morning, Kellogg (K) announced that its third-quarter net income dropped 6% thanks to slumping cereal sales. In addition to the weakening cereal sales, Kellogg saw competition strengthen and continuing impact from a cereal recall.
First things first, the cereal king reported earnings of 90 cents per share ($338 million), which came in lower than last year's earnings of 94 cents per share ($361 million).
Analyst Calls: AMZN, CAKE, CS, EMC, FCX, GR, HOT, K, MAR, TWC, UNP, USB ...
Analyst Upgrades
- Union Pacific (UNP) and Polycom (PLCM) were upgraded to outperform from market perform at Wells Fargo.
- Time Warner Cable (TWC) was upgraded to outperform from sector perform at RBC Capital.
- Cheesecake Factory (CAKE) was upgraded to neutral from underweight at JPMorgan.
- LaSalle Hotel (LHO) was upgraded to outperform from neutral at RW Baird.
- Graco (GGG) was upgraded to buy from hold at BB&T.
- Valley National (VLY) was upgraded to market perform from underperform at Keefe Bruyette.
- Credit Suisse (CS) was upgraded to hold from sell at RBS.
- U.S. Bancorp (USB) was upgraded to outperform from perform at Oppenheimer.
- Penn National (PENN) and Riverbed (RVBD) were upgraded to buy from hold at Jefferies.
- Goodrich (GR) was upgraded to outperform from neutral at Cowen.
- Amazon.com (AMZN) upgraded to buy from average at Caris.
Continue reading Analyst Calls: AMZN, CAKE, CS, EMC, FCX, GR, HOT, K, MAR, TWC, UNP, USB ...
Kellogg Downgraded: Should Shareholders Care?
Don't you hate it when a stock you own is downgraded by an analyst? Well, maybe you shouldn't hate it, because if it is a stock you're confident in, you can use the potential sell-off after the negative report as a buying opportunity. I guess it's more of an emotional thing. Although I don't own Kellogg Company (K), I was amused by its inclusion in the bad section of today's Analyst Calls piece. UBS brought its rating on the equity down to neutral from buy. It also lowered the price target.
Continue reading Kellogg Downgraded: Should Shareholders Care?
Analyst Calls: AAPL, ALL, AOL, AVP, AZPN, BMY, COO, F, K, MSFT, PENN, UAL ...
Analyst Upgrades
- Merriman upgraded Penn National (PENN) to buy from neutral, citing the company's strong balance sheet and management team. The firm also raised its target range for shares to $34 to $37.60.
- BMO Capital upgraded Cooper Companies (COO) to outperform from market perform and raised its price target to $55 from $46. The firm sees upside to Street estimates and increased visibility.
- Argus upgraded Watson Pharma (WPI) to buy from hold based on valuation.
- Phillips-Van Heusen (PVH) was upgraded to conviction buy from neutral at Goldman.
- Allstate (ALL) was upgraded to overweight from neutral at JPMorgan.
- Weingarten Realty (WRI) was upgraded to neutral from underperform at BofA/Merrill.
Continue reading Analyst Calls: AAPL, ALL, AOL, AVP, AZPN, BMY, COO, F, K, MSFT, PENN, UAL ...
Chasing Value: Granny Said, 'It Has Turned into One Big Casino'
Here is a common sentiment about the stock market: "No fun at all. As I have said before, I believe it has turned into one big casino largely divorced from its original goal of providing capital to companies who produce something of value."
There's a lot of truth to what "granny" recently said to me in an e-mail. Fortunately she also noted "FYI Granny's up 5.86% + dividends." That would give her a gain of about 10% in the past ten months since I posted Where should granny put $50,000, suggesting a very conservative portfolio for an uncertain time.
Not only has she earned a very nice return, surpassing her CD account by 9.5% (20 fold), but she was able to do so with a great deal less volatility than the overall market most of us have lived through.
Continue reading Chasing Value: Granny Said, 'It Has Turned into One Big Casino'
Analyst Calls: HSP, EBAY, BX, CSCO
Analyst upgrades:
- Bernstein upgraded Hospira (HSP) to Outperform from market Perform based on valuation, expectations that the company will be able to fix manufacturing issues quickly, and views Propolfol and biosimilars as underappreciated. The firm has a $63 price target on the stock.
- Citigroup upgraded eBay (EBAY) to Buy from Hold citing valuation and improvements to Marketplace. The firm keeps a $28 price target for shares.
- Deutsche Bank upgraded Coca-Cola Femsa (KOF) to Hold from Sell citing lessening acquisition risk and raised its target for shares to $66 from $61.
- Blackstone (BX) and Simon Property (SPG) were upgraded to Conviction Buy from Buy at Goldman.
- BreitBurn Energy (BBEP) was upgraded to Outperform from Market Perform at Wells Fargo.
- SL Green Realty (SLG) was upgraded to Buy from Neutral at BofA/Merrill.
Kellogg Down After Quarterly Report -- No Need to Worry
So Kellogg (K) is not the toast of Wall Street today. At the time of this writing, shares were off by close to 6%, coming in at a quote of $48.50. Are you kidding me? A defensive stock like this one is off by almost 6%? Yes, my friends, it happens. Makes you wonder what is truly defensive and what isn't, am I right?Shareholders have no choice but to go along for the ride. Then again, they do have a choice. Perhaps they could add to their position on the dip. After all, is Kellogg through as a long-term idea?
Continue reading Kellogg Down After Quarterly Report -- No Need to Worry
Options Update: Kellogg August Puts Active on Elevated Volatility into EPS
Kellogg (K) closed down 95 cents to $51.52. K is expected to report Q1 EPS on July 29. August put option implied volatility is at 26, December is at 22, versus its 26-week average of 18. Call option volume of 481 contracts compares to put volume of 9,000 contracts according to Track Data, suggesting hedging for downside price movement.Dean Foods (DF) is expected to report Q2 EPS on August 3. DF August put option implied volatility is at 58, December puts are at 52, versus its 26-week average of 37, according to Track Data, suggesting larger price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
General Mills Down After Q4 Report
General Mills (GIS), a business in constant battle with fellow cereal concern Kellogg (K), saw some weakness Wednesday following its fourth-quarter release, which was posted Tuesday after the bell. But should a long-term investor care? No. It isn't a big deal.The stock has been relatively decent over the last twelve months. Shares are currently closer to the 52-week high of $38.98 than they are to the 52-week low of $27.64. Here's something else that might put today's slide into perspective: a couple days ago, management announced a 17% increase in the dividend; the new quarterly payment has been set at 28 cents per share. At the time of this writing, the company had a bid of $35.65. Such a price bestows upon the equity a yield of better than 3%.
Analyst Calls: ANDS, AZO, CHRW, CR, CRM, FDO, GIS, K, NAV, ORCL ...
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Analyst Upgrades
- Baird upgraded C.H. Robinson (CHRW) to outperform from neutral and has a $67 target on the stock. The firm upgraded shares citing growth opportunities given the capacity constrained environment.
- UBS upgraded Navistar (NAV) to buy from neutral, citing improved trucker preferences towards the company's engine technology.
- KeyBanc upgraded Crane (CR) to buy from hold based on valuation stabilization and potential upside in aerospace, among other reasons. The firm has a $39 target on the stock.
- United Therapeutics (UTHR) was upgraded to overweight from neutral at JPMorgan.
- Equifax (EFX) was upgraded to overweight from equal weight at Stephens.
- Brown & Brown (BRO) was upgraded to buy from hold at Citigroup.
Continue reading Analyst Calls: ANDS, AZO, CHRW, CR, CRM, FDO, GIS, K, NAV, ORCL ...
Good News from Heinz
Heinz (HNZ) is not just a maker of ketchup. It's also a company that can deliver for its shareholders. Today, the stock isn't up that much; with a little over an hour to go before the market closes its doors for the day, it was higher by about 0.7%, with a price of $44.57, not too far away from the 52-week high of $47.84. Volume, however, is healthy, as is the one-year chart (save for the little rough bit on the right, which anyone would expect to see considering what's been going on in the major indexes as of late). The company did a cool thing this morning. Besides reporting a nice set of data for its fiscal fourth quarter, management raised the dividend. Music to the ears of those who count this equity as a portfolio member.
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