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The week in preview: No turkey earnings from Tyson, Hormel, Cracker Barrel ...

Though the earnings season is winding down, and the coming week includes the Thanksgiving holiday in the U.S., plenty of reports are still due out. And analysts surveyed by Thomson Reuters don't seem to be expecting too many turkeys among this week's bunch.

Leading U.S. meat processor Tyson Foods Inc. (TSN), which has just named a new chief executive officer and a new chief operating officer, is expected to report fiscal fourth-quarter earnings of $0.26 per share, up from $0.14 in the same period of last year. But revenue is expected to total $6.9 billion, or 4.3% less than a year ago. The full-year forecast is for a profit of $0.25 per share (-16.7) on $26.4 billion (-3.9%) in sales. This dividend payer has offered upside surprises in the past two quarters, topping estimates by 11 cents per share in the third quarter. The long-term EPS growth forecast is 8.5%, which is about the same as that of competitor Smithfield Foods Inc. (SFD). Tyson's earnings multiple is 13x. The First Call consensus recommendation has been to buy TSN for more than 90 days. The mean price target is $13.83. JPMorgan, though, downgraded Tyson due to rising commodities prices and other reasons, but BloggingStocks contributor Joseph Lazzaro likes it for its diversity and global reach. Shares have faced resistance around $13 since early September and closed the week at $13.07.

Continue reading The week in preview: No turkey earnings from Tyson, Hormel, Cracker Barrel ...

Analyst upgrades, downgrades and initiations: DLTR, JCP, JWN, LEA, RIMM, S ...

Analyst upgrades:

  • Credit Suisse upgraded Sprint Nextel (S) to outperform from neutral and raised its target to $6 from $4. The firm believes Sprint Nextel's core business is turning and that valuation is attractive. Credit Suisse also added Sprint Nextel to its Focus List.
  • Goldman expects Nordstrom (JWN) to benefit from a recovery in the high-end consumer. The firm upgraded shares to buy from neutral and raised its target to $41 from $39.
  • Deutsche Bank remains cautious on the Dry Bulk sector long-term but expects increased Q4 day rates. The firm upgraded Genco (GNK) to buy from hold and raised its target to $31 from $24; the firm also upgraded Eagle Bulk (EGLE) to hold from sell.
  • Steelcase (SCS) was upgraded to buy from hold at BB&T.
  • United Rentals (URI) was upgraded to outperform from perform at Oppenheimer.
  • GLG Partners (GLG) was upgraded to outperform from market perform at Keefe Bruyette.
  • Ladish (LDSH) was upgraded to outperform from market perform at FBR Capital.

Continue reading Analyst upgrades, downgrades and initiations: DLTR, JCP, JWN, LEA, RIMM, S ...

Technical trade #6: Dollar Tree (DLTR)

dollar tree technical analysisDollar Tree (NASDAQ: DLTR) has more than 3,500 stores that sell its inventory of toys, durable housewares, candy, seasonal goods, and so on for a $1. Its other stores, operating as Deal$, sell most of its inventory at $5 or less.

This deep-discount retailer is generally considered to be the leader of its class and is rated a "buy" (four stars) by S&P with a target of $59.

The stock executed a major long-term bullish breakout at around $45. Technically this breakout is major and targets the stock at over $65.

Continue reading Technical trade #6: Dollar Tree (DLTR)

Six technical trades targeted for big profits

technical tradesWhen selecting which stocks to buy, ratings from agencies like Standard & Poor's can be useful in creating a balanced portfolio.

But did you know technical analysis is the most accurate way to predict where a stock -- or the market for that matter -- is going?

Technical analysis is more of an art than a science, but when used correctly it can boost your profits to new heights. I took a look at stocks that S&P has a four- or five-star rating on and analyzed their charts to come up with six great technical trades for you.

Continue reading Six technical trades targeted for big profits

Family Dollar beats in Q4, but sales weren't exciting

Family Dollar Stores (NYSE: FDO), like Dollar Tree (NASDAQ: DLTR), is benefiting from the soft economy. Consumers love paying low prices, so they flock to these retail business models like moths to a flame. And judging by Family Dollar's Q4 report, people are still having a great time saving money.

Net income increased over 13% to 43 cents per share, which was two pennies higher than Wall Street's forecasts, according to our earnings preview. Unfortunately, sales weren't so great. Total sales went up 2.6%, and same-store sales saw a mere 1% gain. I would have expected higher growth in the comps metric.

Continue reading Family Dollar beats in Q4, but sales weren't exciting

Analyst upgrades, downgrades and initiations: AXP, CL, DLTR, PG, RIMM, UAUA ...

Analyst upgrades:

  • FBR Capital upgraded McAfee (NYSE: MFE) to Outperform from Market Perform after channel checks indicated the company's September quarter deal flow has been stronger than expected. FBR raised its target on shares to $50 from $41.
  • Thomas Weisel upgraded Adtran (NASDAQ: ADTN) to Overweight from Market Weight, citing increased wireless backhaul capex spending by Tier-1 carriers. The firm raised its target to $32 from $21.
  • RBC Capital upgraded Brunswick (NYSE: BC) to Outperform from Sector Perform as the firm thinks the company no longer has liquidity risk and can generate significant profits by 2012. The firm set a $17 target on the stock.
  • Bronco Drilling (NASDAQ: BRNC) was upgraded to Hold from Underperform at Jefferies.
  • LSI Corp. (NYSE: LSI) was upgraded to Buy from Hold at Deutsche Bank.
  • UBS upgraded U.S. Airways (NYSE: LCC) and UAL Corp. (NASDAQ: UAUA) to Buy from Neutral.

Continue reading Analyst upgrades, downgrades and initiations: AXP, CL, DLTR, PG, RIMM, UAUA ...

Earnings highlights: Burger King, Dell, Dollar Tree, J. Crew, Staples, Toll Bros. ...

Here are some highlights from last week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Burger King, Dell, Dollar Tree, J. Crew, Staples, Toll Bros. ...

Analyst upgrades, downgrades and initiations: BBBY, DLTR, ISLE, SEAC, WHR ...

Analyst upgrades:

  • Barclays upgraded Dollar Tree (NASDAQ: DLTR) to Overweight from Equal Weight and raised its target to $64 from $48 following the better-than-expected Q2 report.
  • Cowen upgraded Whirlpool (NYSE: WHR) to Outperform from Neutral. The firm cites stabilizing demand trends and recovering margins for the upgrade.
  • Susquehanna upgraded Isle of Capri (NASDAQ: ISLE) citing weakness following the weak quarter. The firm, which has a $13 target on shares, expects regional operators to benefit from improving macro trends quicker than destination markets.
  • Senior Housing (NYSE: SNH) was upgraded to Outperform from Market Perform at Wells Fargo.
  • Barclays (NYSE: BCS) was upgraded to Outperform from Market Perform at Keefe Bruyette.
  • CGI Group (NYSE: GIB) was upgraded to Buy from Speculative Buy at Canaccord.

Continue reading Analyst upgrades, downgrades and initiations: BBBY, DLTR, ISLE, SEAC, WHR ...

Dollar Tree has an incredible quarter -- too late to buy?

Dollar Tree (NASDAQ: DLTR) reported a truly excellent quarter. The stats contained in the release are monumentally impressive. Dollar Tree increased sales almost 12% in Q2, a performance that essentially matched expectations. Per-share income soared 50% to 63 cents, beating estimates of 54 cents per share.

This is one of those situations where all the numbers point toward future growth. Margins increased, as did cash from operations (I enjoyed the fact that capital expenditures didn't go up too much). Same-store sales moved higher by 6.8%, and management's outlook for the rest of the fiscal year received a boost. And judging by the guidance, I'd say that Dollar Tree shares aren't overly expensive at the moment. Let's add a technical factor to go along with my opinion of the valuation: Dollar Tree closed Wednesday to the upside by well over 4% on the earnings news, not far at all from a 52-week high. The price action was accompanied by healthy volume.

Continue reading Dollar Tree has an incredible quarter -- too late to buy?

Earnings preview: Dollar Tree still thriving in recession

Dollar Tree Stores Inc. (NASDAQ: DLTR), the nation's leading operator of dollar stores, is scheduled to discuss its second-quarter 2009 results tomorrow morning in a conference call at 9:00 AM ET. You can catch the live webcast of the call on the company's website.

In the three months that ended in July 31, Dollar Tree saw the retirement of a long-time board member. Analysts surveyed by Thomson Reuters expect the company to report that its earnings grew 22.2% from a year ago to $0.54 per share. Revenue for the quarter is expected to be 11.2% higher to $1.2 billion, in line with preliminary results. Analysts so far expect the third-quarter results to be about the same. The Chesapeake, Va.-based company has topped earnings expectations in recent quarters, by as much as six cents per share.

Continue reading Earnings preview: Dollar Tree still thriving in recession

The week in preview: Canadian banks in the earnings spotlight

Canadian banks are scheduled to step into the earnings spotlight this week, with third-quarter reports coming from Bank of Montreal (NYSE: BMO), Bank of Nova Scotia (NYSE: BNS), Canadian Imperial Bank of Commerce (NYSE: CM), Royal Bank of Canada (NYSE: RY), and Toronto-Dominion Bank (NYSE: TD). While Canadian banks on the whole held up better than their U.S. counterparts during the financial crisis, these five are expected to report that their earnings are still declining in the most recent quarter.

Analysts surveyed by Thomson Reuters are looking for EPS for these banks to have fallen from 15% to 25% from a year ago. Their long-term EPS growth forecast is for between 10% and 12%, which is in the same range as U.S. rivals JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC), but better than Bank of America Corp. (NYSE: BAC) and Citigroup Inc. (NYSE: C). Earnings multiples for these Canadian banks are 10x to 12x, but none of them have a First Call consensus recommendation is to buy. The Motley Fool, though, considers TD as a value stock and RY a stock poised to pop. All of them are trading much closer to their 52-week highs than lows, and shares of all are up more than 100% since March lows.

Continue reading The week in preview: Canadian banks in the earnings spotlight

The week in preview: Seeking more signs of economic stability

Last week's Fed Beige Book report and GDP numbers suggested that the economy may be stabilizing, and this coming week will bring plenty of economic data to confirm or deny that suggestion. On the schedule are consumer credit, construction spending, factory orders, and pending home sales for June, the employment situation, the Import Price Index, and new motor vehicle sales for July, as well as the ISM Manufacturing and Non-manufacturing Indexes for July.

The week will also bring quarterly reports from home builders Beazer Homes USA Inc. (NYSE: BZH), D.R. Horton Inc. (NYSE: DHI), and Pulte Homes Inc. (NYSE: PHM). Yet again, analysts surveyed by Thomson Reuters expect all three to have narrowed their losses in the most recent quarter. However, they've all tended to post deeper-than-expected losses in recent quarters as well. Analysts also expect to see their revenue down 45% or more for the past quarter. They forecast long-term EPS growth of 7% or more, but none of these homebuilders has a First Call consensus buy recommendation, not surprisingly. Short interest is falling off for Beazer and D.R. Horton, and D.R. Horton and Pulte have been reporting positive cash flow from operations, but all three of them said they had more long-term debt than cash in hand last time around. Mortgage insurer PMI Group Inc. (NYSE: PMI) is likewise expected to report that it narrowed its second-quarter loss.

Continue reading The week in preview: Seeking more signs of economic stability

Analyst upgrades, downgrades and initiations: CIEN, DLTR, EXPE, IBM, ZION ...

Analyst upgrades:

  • Piper Jaffray upgraded PetMed Express (NASDAQ: PETS) to Overweight from Neutral following the better-than-expected Q1 results. The firm raised its target on shares to $22 from $19.
  • Deutsche Bank upgraded International Paper (NYSE: IP) and Packaging Corp. (NYSE: PKG) to Buy from Hold to reflect stabilization in the containerboard industry. The firm raised its target price on Packaging Corp. to $24 from $14, and on International Paper to $24 from $16.
  • Bernstein upgraded Human Genome Sciences (NASDAQ: HGSI) to Outperform from Market Perform following the positive Phase III data for Benlysta in lupus.
  • IBM (NYSE: IBM) was upgraded to Hold from Sell at Societe Generale.
  • British Airways (OTC: BAIRY) was upgraded to Buy from Sell at Goldman.
  • Continental AG (OTC: CTTAY) was upgraded to Hold from Sell at Citigroup.

Continue reading Analyst upgrades, downgrades and initiations: CIEN, DLTR, EXPE, IBM, ZION ...

The week in preview: Focus returns to earnings: Alcoa, Chevron, Family Dollar

The second half of the calendar year has begun, and earnings return to the spotlight this week. As usual, Alcoa Inc. (NYSE: AA) is among the first of the S&P 500 to report quarterly results. For the second quarter in which Alcoa agreed to sell its wire harness and electrical distribution business and its fastening systems business expanded into Morocco, analysts surveyed by Thomson Reuters expect the New York-based aluminum producer to report swinging to a net loss of $0.34 per share from a profit of $0.66 per share in the year-ago period. Second quarter revenue is expected to have fallen 48.3% to $3.9 billion. The full-year forecast is currently for a loss of $1.04 per share and revenue of $16.7 billion (-38.0%). Alcoa has missed expectations in the past three quarters, by as much as 17 cents per share. The long-term EPS growth forecast is 10.0%, which is better than the sector average. Alcoa slashed its dividend earlier this year, and the First Call consensus recommendation remains to hold AA. However, TheStreet.com recommends it as an against-the-grain pick. At $9.86, shares are down 12.4% since the beginning of the year, and recently have been bumping up against the 200-day moving average.

Continue reading The week in preview: Focus returns to earnings: Alcoa, Chevron, Family Dollar

Earnings highlights: AutoZone, Costco, Dell, Heinz, Staples, Tiffany, Tivo and more

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: AutoZone, Costco, Dell, Heinz, Staples, Tiffany, Tivo and more

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Symbol Lookup
IndexesChangePrice
DJIA-14.2810,318.16
NASDAQ-10.782,146.04
S&P 500-3.521,091.38

Last updated: November 22, 2009: 04:14 PM

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