Analyst Upgrades

• Intel (INTC) was upgraded to buy from neutral at UBS.
• Wells Fargo upgraded MetroPCS (PCS), Coventry Health (CVH) and Scientific Games (SGMS) to outperform from market perform.
• Estee Lauder (EL) was upgraded to overweight from equal weight at Barclays.
• Simon Property (SPG) was upgraded to buy from hold at Jefferies.
• Citigroup upgraded BreitBurn Energy (BBEP) to buy from hold.

Continue reading Analyst Calls: ALU, AVP, BRCD, CVH, DISH, EL, INTC, NSM, PCS, SWY ...

Analyst Calls: ALU, AVP, BRCD, CVH, DISH, EL, INTC, NSM, PCS, SWY ... originally appeared on BloggingStocks on Mon, 08 Nov 2010 12:00:00 EST. Please see our terms for use of feeds.

"After trading higher following its past nine quarterly earnings reports, investors finally found a reason to be disappointed in Apple (AAPL); however, despite the negative investor reaction, it was still an outstanding quarter from the tech giant," says Geoffrey Seiler.

The editor of BullMarket.com report, "Apple reported a fiscal Q4 profit of $4.31 billion, or $4.64 a share, up 70% from $2.53 billion, or $2.77 cents a share, a year ago. Revenue soared 67% to $20.3 billion. The results easily surpassed the analyst consensus of $4.08 in EPS on sales of $18.9 billion.

"One area of contention with investors was gross margins, which fell to 36.9% from 41.8% a year ago. Analysts were looking for gross margins of 38.1%. However, gross margins were 190 basis points above Apple's own guidance.

Continue reading Apple (AAPL): Higher Price Targets Still Ahead

Apple (AAPL): Higher Price Targets Still Ahead originally appeared on BloggingStocks on Tue, 19 Oct 2010 10:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Goldman believes EOG Resources (EOG) can regain its premium multiple given its ability to find new horizontal liquids resource plays. The firm upgraded shares to conviction buy from buy and has a $129 price target on the stock.
• Deutsche Bank upgraded Macerich (MAC) to buy from hold following the company's Q2 results and raised its target for shares to $47 from $45.
• Needham upgraded QuinStreet (QNST) to strong buy from buy, citing the strong Q4 report and valuation, and has a $20 target on the stock.
• Macy's (M) was upgraded to buy from neutral at BofA/Merrill.
• Whole Foods (WFMI) was upgraded to buy from neutral at UBS.
• Texas Instruments (TXN) was upgraded to outperform from market perform at Raymond James.

Continue reading Analyst Calls: BBY, BWA, DGI, EOG, M, MAC, MR, NOC, TXN, WFMI ...

Analyst Calls: BBY, BWA, DGI, EOG, M, MAC, MR, NOC, TXN, WFMI ... originally appeared on BloggingStocks on Tue, 10 Aug 2010 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Apple Earnings Soar, Topping Estimates

Apple Earnings Soar, Topping Estimates originally appeared on BloggingStocks on Wed, 21 Jul 2010 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Apple's Momentum Faces Off Against High Expectations

Apple's Momentum Faces Off Against High Expectations originally appeared on BloggingStocks on Thu, 08 Jul 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Apple Stock Soars to All-Time High Following Strong Earnings Report

Apple Stock Soars to All-Time High Following Strong Earnings Report originally appeared on BloggingStocks on Wed, 21 Apr 2010 09:00:00 EST. Please see our terms for use of feeds.

Once upon a time, Mac users could brag they were much safer from malicious electronic attacks. After all, in the days before Google (GOOG), when Microsoft (MSFT) was the only uber-player in town, Windows was the perpetual malware target. Phishers, however, aren't discriminating; they're just looking for an account to plunge. So, both Apple (AAPL) and Microsoft users are threatened. Virus writers do tend to focus on the Windows operating system, which owns 90% of the OS market, but phishers are platform independent.

Phishing involves attempts to get a user to reveal information about their accounts. Once the soon-to-be victim clicks that link or fills out a form, the "transaction" is complete -- no operating system interaction necessary. As a result, there really isn't any advantage to using a Mac over a PC.

Continue reading Apple's Macs aren't safe from phishing attacks

Apple's Macs aren't safe from phishing attacks originally appeared on BloggingStocks on Wed, 18 Nov 2009 10:20:00 EST. Please see our terms for use of feeds.

"Apple (NASDAQ: AAPL), a holding on our recommended buy list, delivered another blowout quarter, driven by booming sales of both the iPhone and its Macintosh computers," notes analyst Geoffrey Seiler.

In his BullMarket.com advisory, he suggests, "Overall, Apple's results are nothing short of amazing." Here, he provides an in-depth analysis of the quarter, his outlook, and the reasoning behind the boost to his longer-term price target to $270 a share.

"Apple sold 7.4 million iPhones in the quarter, 7% more than the year-ago quarter, and 3.05 million Macs, a 17% year-over-year increase. The end result was that the company posted a whopping 47% increase in Q4 net income.

Continue reading Apple (AAPL): 'Nothing short of amazing'

Apple (AAPL): 'Nothing short of amazing' originally appeared on BloggingStocks on Wed, 21 Oct 2009 10:30:00 EST. Please see our terms for use of feeds.

If there was one stock you wish you had bought when it was being crushed by the financial crisis along with every entity out there, it's Apple (NASDAQ: AAPL). Shares of the company, which counts Microsoft (NASDAQ: MSFT) and Dell (NASDAQ: DELL) as rivals, have more than doubled since they hit a 52-week low of around $78 per share. Really, did we think this one wasn't coming back? Hey, I fully admit, I've been a bear on Apple at different points during the downturn. Difficult not to be, with consumer sentiment and all that.

Well, it's hard to be a bear now. Last night, the market welcomed Apple's Q4 earnings with open arms. How could it not? The first paragraph of the press release tells a story of profound growth. Sales increased 25%, and earnings per share soared over 40% to $1.82 per share.

Continue reading Apple's impressive Q4 -- too late to buy the stock?

Apple's impressive Q4 -- too late to buy the stock? originally appeared on BloggingStocks on Tue, 20 Oct 2009 08:30:00 EST. Please see our terms for use of feeds.

"Apple (NASDAQ: AAPL), already on our recommended list selection, announced fiscal Q3 earnings after the bell last night that, to no one's surprise, easily topped Wall Street estimates," notes Geoffrey Seiler.

In his Bull Market.com advisory, he reviews the latest earnings report and offers his outlook for the shares -- including a boost to his price target for the stock.

"For the quarter ended June 27th, the company earned $1.23 billion, or $1.35 a share, up 15% from $1.07 billion, or $1.19 a share, a year ago. Analysts were only looking for EPS of $1.17.

Continue reading Bullish momentum boosts Apple (AAPL)

Bullish momentum boosts Apple (AAPL) originally appeared on BloggingStocks on Thu, 23 Jul 2009 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Despite action, tech wants to rule (AMD, AAPL, BA, GE, SBUX, YHOO)

Closing Bell: Despite action, tech wants to rule (AMD, AAPL, BA, GE, SBUX, YHOO) originally appeared on BloggingStocks on Wed, 22 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Apple up despite downgrade -- maybe optimism about China iPhone deal rumor?

Apple up despite downgrade -- maybe optimism about China iPhone deal rumor? originally appeared on BloggingStocks on Wed, 25 Feb 2009 08:20:00 EST. Please see our terms for use of feeds.

Apple Inc. (NASDAQ: AAPL) has about 250 retail stores. It's not surprising that their sales would be off. The recession in retail revenues has spread almost everywhere.

But, the trouble at Apple stores may be deeper than many investors would expect. According to Barron's, "Apple's same-store revenues, a key retail metric comparing sales of stores open for at least a year, slid 17.4% in the December quarter from a year earlier, reports Needham hardware analyst Charlie Wolf." Visitor traffic is fairly flat, so a lot of people are just hanging around checking out the Macs and iPods.

Continue reading Have Apple's retail stores become a waste of space?

Have Apple's retail stores become a waste of space? originally appeared on BloggingStocks on Sun, 01 Feb 2009 14:10:00 EST. Please see our terms for use of feeds.

Too much has already been written about what a great quarter Apple (NASDAQ: AAPL) had. It beat earnings forecasts. It met expectations for Mac sales. It exceeded expectations for iPod sales, and it was a little light on iPhone shipments.

So, what was the key to Apple's success? More than anything else, it is that the iPod keeps selling even though there are more than 200 million of them somewhere out there in the world. Apple sold another 23 million iPods, a record. And, that was the trick.

Have a look at Apple's iPod pricing. The average price between the cheapest version, the Shuffle, and the next cheapest version, the Nano, is about $99. During a holiday slammed by a recession, how may products are available for $99? Especially products that are great gifts?

Buy a friend an iPhone -- it comes with a hefty two-year calling plan that makes it quite expensive. Buy a Mac -- that will probably set the buyer back $1,000.

The iPod is still a desirable present. It is from Apple, after all. But, what earnings did not tell is how little it costs to get one and what that means during hard times.

A $99 gift. And, by the way, with it strong earnings, Apple should trades at about $99 today.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Apple's (AAPL) $99 success originally appeared on BloggingStocks on Thu, 22 Jan 2009 09:45:00 EST. Please see our terms for use of feeds.

Continue reading Steve Jobs says he has a 'hormone imbalance'

Steve Jobs says he has a 'hormone imbalance' originally appeared on BloggingStocks on Mon, 05 Jan 2009 09:15:00 EST. Please see our terms for use of feeds.

Apple (NASDAQ: AAPL) has not traded at $50 since July 2006 and has not been below that figure for any extended period since 2006. In the scheme of things, that is not so long ago.

The basis of Apple's run to over $200 was that iPod sales would continue to be solid, the Mac would sell at a rate better than the overall PC market, and the iPhone would be Apple's new profit center. The recession and the Mac hitting the upper level of its natural market may have undermined that formula.

Goldman Sachs downgraded Apple yesterday, saying that the recession had caught up to the company. But the news got worse than that. According to The Wall Street Journal, "Sales of Macs in U.S. stores last month declined 1% from a year ago, while industry-wide PC sales rose 2%, according to research firm NPD Group." That will come as a shock to almost every investor holding shares in Apple. The Mac has outperformed PC sales for the last two years.

There are several reasons that Mac sales may be peaking. The first is that the Mac is relatively expensive compared to many PCs that have had to cut prices, in some cases, below $500 to keep customers coming in. In addition, the Mac is up against an entrenched PC market with companies that have IT directors who do not want to support both Windows and the Mac OS. That adds to the expense, and it is a recession.

Apple is a stock where much of its value is based on cult like expectation. It rises because each new product will do better than the last and each quarter will outperform the one before it. That may be coming to an end and the disappointment will be profound. Apple trades at $94 now, and it may not see that price again for a long time.

Douglas A. McIntyre is an editor at 247wallst.com.

Apple (AAPL): Back to $50 originally appeared on BloggingStocks on Tue, 16 Dec 2008 03:57:00 EST. Please see our terms for use of feeds.

This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

In addition to being a crackerjack equities analyst, I'm also something of a makeup aficionado. Credit my upbringing for this; my mother grew up in the '50s, and even today, she is loathe to so much as check the mail without a full application of liquid eyeliner. So, as you might imagine, I'm quite familiar with Estee Lauder Companies (NYSE: EL).

While it's technically a consumer-goods company, you might have a perception of Estee Lauder as a peddler of upscale cosmetics -- in today's economy, high-priced eyeshadow is unarguably a discretionary expense worth cutting. However, EL's reach is probably broader than you realize. For example, the company owns MAC, a line that caters specifically to professional makeup artists and amateur makeup fetishists. No matter the economic climates, these two constituencies can be counted on to keep shelling out for blush.

Estee Lauder also boasts the lower-priced Clinique line, a staple of many women's' skin-care and cosmetics routines for decades. On the high end, the company sells fragrances by the likes of Tom Ford and Michael Kors -- two names favored by the kind of consumers who do still have disposable income to spare. Plus, its Bumble and bumble brand name is a favorite of professional hair stylists.

Continue reading Cheap Stocks: Estee Lauder Companies

Cheap Stocks: Estee Lauder Companies originally appeared on BloggingStocks on Sat, 06 Dec 2008 18:10:00 EST. Please see our terms for use of feeds.

"Apple (NASDAQ: AAPL) is offering a rare opportunity and is now one of our favorite ideas for investors with a multi-year time horizon," says Bill Martin.

In his BullMarket.com, the trading and investing expert explains, "Our bullish thesis on Apple revolves around cash; both the cash on its balance sheet and the cash it is able to generate."

"With approximately $24.5 billion in cash and no debt, about $27.50 of Apple's share price is cash. Meanwhile, the company generated $9.1 billion in cash the past fiscal year.

"Given the way revenue with the iPhone is reported (it's recognized over the life of a contract, not upfront), the cash Apple generates is actually a lot higher than what its earnings indicate.

"Combined, this makes common metrics like P/E ratios not a great way to value the company. If you instead substitute an Enterprise Value (which is basically the market cap with net debt or cash added back in) to cash flow ratio, the stock is trading at only about a 6x multiple.

Continue reading Cash-rich Apple (AAPL) offers 'rare opportunity'

Cash-rich Apple (AAPL) offers 'rare opportunity' originally appeared on BloggingStocks on Thu, 27 Nov 2008 09:30:00 EST. Please see our terms for use of feeds.

Apple Inc. (NASDAQ: AAPL) stock is down 54% from its December 2007 high of $200 a share. We know the economy is in rough shape and consumers are cutting back. But by one measure, Apple stock is a bargain. Should you buy it?

Apple trades at a Price/Earnings to Growth (PEG) ratio of 0.75 (based on a P/E of 17.7 on earnings growth of 23.7% to $6.52 in FYE ending September 2010). A PEG value less than one is considered an attractive price. So it looks cheap to me -- but only if you believe that earnings forecast. And economic woes mean it's likely that the numbers will be lower.

If Steve Jobs remains in the CEO position for the next several years, it is reasonable to expect more ground-breaking innovations from Apple. But one short seller is betting that the benefit of any innovations will be offset by the fact that in a weak economy, people will spend less on Apple's products, resulting in weaker Mac sales. And he does not see Apple investing in new products like the iPhone.

Continue reading Is Apple (AAPL) a bargain?

Is Apple (AAPL) a bargain? originally appeared on BloggingStocks on Wed, 12 Nov 2008 11:45:00 EST. Please see our terms for use of feeds.

When the short interest in companies that are as robust as Apple (NASDAQ: AAPL) increases, it is a sign that investors are willing to bet against almost any firm in this market. For the period ending October 31, shares hold short in the big consumer electronics firm were up 16% to 28.1 million shares. The figure compares with short holdings as of the middle of October.

There is little obvious reason to think Apple will go lower. Its shares are below $94 already, down from almost $203 a year ago. By almost any measure, Apple is one of the most successful companies in the world, with a clean balance sheet, $33 billion in cash, growing sales, and the best products in its market segments.

The theory behind shorting Apple is that its holiday quarter will be weak. But that may be a fool's gamble. Most evidence points to Mac sales continuing to grow sharply even with most PC sales falling. The iPhone is taking market share from all other smartphones. The overall handset category may be down for the rest of the year, but Apple's product is almost certain to pick up sales.

By moving into Apple, a lot of short sellers will get burned.

Douglas A. McIntyre is an editor at 247wallst.com

Short sellers even love Apple (AAPL) originally appeared on BloggingStocks on Wed, 12 Nov 2008 11:15:00 EST. Please see our terms for use of feeds.