downgrade posts

Feed

Outperforming Lennar Shrugs Off Downgrade

Lennar Corp. (LEN) just can't seem to win much respect on Wall Street. Despite well-known fundamental issues within the housing sector, LEN has tallied a year-to-date advance of roughly 35% -- easily topping the 11.4% gain collected by the S&P 500 Index (SPX).

Wall Street seems less than impressed by this technical outperformance, though. Earlier today, S&P Equity downgraded the stock to hold from strong buy, joining six other analysts who maintain a tepid rating on the shares.

Continue reading Outperforming Lennar Shrugs Off Downgrade

Unilever Receives a Double Upgrade

Consumer-goods behemoth Unilever (UN) was among the stocks making headway Tuesday morning. The British firm received an upgrade to overweight from underweight by brokerage firm Morgan Stanley, which stated, "We double upgrade Unilever to overweight, as we see the risk/reward profile for the shares as more attractive now than at any point in the past three years."

I am not going to agree or disagree with the decision for the upgrade right now; I want to take a look at the equity's chances to further this rally (at more than 3% as of this writing). There is evidence for both the continuation and the stall of the rally

Continue reading Unilever Receives a Double Upgrade

Suntech Power Tumbles to New Annual Low Following Earnings

Suntech (STP) logoSuntech Power (STP) is taking a post-earnings plunge, as traders pan the company's third-quarter report.

Wednesday morning, Suntech said its third-quarter profit climbed 11% to $33.1 million, or 18 cents per American depositary share (ADS), while revenue rose 57% to $743.7 million. Gross margin for the quarter contracted to 16.4% from 17.8%, due to lower selling prices.

Continue reading Suntech Power Tumbles to New Annual Low Following Earnings

Verizon Drops on Dividend Concerns

Verizon (VZ) logoVerizon (VZ - option chain) stock is trading lower today after VZ shares were downgraded at Bernstein today to Underperform from Market Perform. In a note to investors, a Bernstein analyst wrote, "At the core of our concern for Verizon is the fact that after it begins to make distributions to Vodafone (VOD), we project that it will generate only just enough cash to cover its current dividend payment, leaving a razor-thin margin for error and sharply limited ability to commit to future dividend growth."

Dividend investors hate to hear that kind of worries regarding their distributions and have been driving VZ's price lower today in response. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on VZ.

Continue reading Verizon Drops on Dividend Concerns

Earnings Preview: Can AutoZone Rev Higher After Q4 Report?

AutoZone (AZO) logoAutoZone Inc. (AZO) is scheduled to release its fiscal fourth-quarter earnings before the market opens Tuesday, Sept. 21. The retailer has a solid track record in the earnings spotlight, having exceeded analysts' per-share profit predictions in each of the past four reporting periods -- and AZO has managed to surpass Wall Street's consensus estimate by an increasingly wide margin in each sequential quarter.

Ahead of the report, analysts surveyed by Thomson Reuters are anticipating AutoZone to bank a profit of $5.42 per share, up from $4.45 per share in the year-ago period. Sales are expected to arrive at $2.39 billion.

Continue reading Earnings Preview: Can AutoZone Rev Higher After Q4 Report?

Analysts Upgrade BP to Buy?

After calls from a U.S. congressman for BP (BP) executives to commit hara-kiri and following President Obama's successful pressure on the company to set up a $20 billion escrow account, cancel $7.8 billion in dividend and sell $10 billion assets, a few analysts decided it couldn't get any worse and upgraded the oil giant shares to buy.

It's been nearly two months since BP's Deepwater Horizon rig exploded in the Gulf of Mexico, causing a massive oil spill -- that's still hasn't been resolved -- and the worst environmental disaster in U.S. history. Shares of the company were nearly halved as the cleanup cost estimates have swelled.

And as the agreements with Obama lifted some of the uncertainty, triggering a relief rally, some analysts also opted to upgrade BP shares.

Continue reading Analysts Upgrade BP to Buy?

Put Volume Spikes on Autodesk

Autodesk ADSK logoRight out of the gate Wednesday, put volume surged to about 50 times the norm on Autodesk (ADSK). Within the first 45 minutes of trading, about 20,000 puts changed hands on the design software company. Most of the activity is taking place in the July series, where it looks as though traders are buying new puts at the 25 and 31 strikes. The stock is currently trading near $26.60, in between these two popular put options.

However, today's preference for bearishly oriented options isn't exactly a deviation from the norm for Autodesk. Among options slated to expire within three months, puts currently outnumber calls by a margin of 2.74 to one.

Continue reading Put Volume Spikes on Autodesk

AIG Downgraded by Keefe Bruyette

Keefe Bruyette on Tuesday downgraded American International Group (AIG) to underperform from market perform and set a price target of $6 per share. The target price is far lower than the stock's current perch in the upper $42 region. The brokerage cut AIG because it "sees little long-term value under AIG's current ownership and capital structure," as theflyonthewall reports. Following the downgrade, shares traded more than 4% lower in pre-market action.

Technically, the assigned target price of $6 is a gutsy move. The stock is perched atop support from its 10- and 20-week moving averages. In addition, the 10-week trendline recently completed a bullish cross of its 20-week counterpart. This technical formation often precedes a continued run higher.

Continue reading AIG Downgraded by Keefe Bruyette

eBay Stock Dips, Still a Good Deal?

Pointing at decreased listing volume, slower than expected growth, and issues of currency exchange rates, Kaufman Bros. analysts have downgraded shares of eBay Inc. (EBAY). Kaufman analyst Aaron Kessler indicates that his company remains positive on eBay, even though it has downgraded the stock from buy to hold.

It would seem that the issue of currency exchange might be the greatest concern here, as many of us wait to see how valuation of the yuan shall unfold. If the yuan appreciates significantly, which it probably won't, it could mildly affect eBay's listing mix, but probably not to any noticeable degree.

Continue reading eBay Stock Dips, Still a Good Deal?

Alcoa Downgraded Ahead of Monday's Earnings

Earnings season will kick off after the bell on Monday when the first of the Dow Jones companies Alcoa (AA) reports its quarterly results. The Street expects the metal magnate to report earnings of 11 cents per share. But this morning, ahead of the earnings report J.P. Morgan felt it prudent to downgrade Alcoa to neutral from overweight. The broker also removed the company from its focus list and lowered its price target on the stock from $21.50 to $16.50.

JPMorgan wrote in a note it believes that AA "will still struggle to generate attractive returns at our strategist's 2011 aluminum price forecast of 92 cents/pound." J.P. Morgan did state that the business "has taken significant costs out of its business by closing high cost operations and through additional procurement and productivity savings."

Continue reading Alcoa Downgraded Ahead of Monday's Earnings

Comerica Selling Stock to Repay TARP Debt

Regional banking issue Comerica (CMA) is in focus today, after announcing last night that it will sell $800 million in common stock in order to repay its debt to the U.S. government. Under the terms of the Troubled Asset Relief Program (TARP). Comerica owes Uncle Sam about $2.25 billion. At this point, the Dallas-based bank is among the few remaining financial institutions yet to repay its TARP debt.

This morning, Comerica priced its common stock offering at $35 per share, representing a discount to Monday's close at $36.29. The shares have quickly backpedaled as a result, slipping below recent support at their 10-day and 20-day moving averages.

Continue reading Comerica Selling Stock to Repay TARP Debt

FBR Downgrades Chubb, Sending Shares Lower

Homeowner insurance provider Chubb (CB) is having a rough day, as the company was downgraded to market perform from outperform at FBR Capital. The downgrade was accompanied by a price-target lowering from $60 to $65. This news forced the stock more than a percentage point lower in pre-open trade, and CB was more than 2% lower in early trading.

I find it rather difficult to believe that CB is going to get anywhere near $60 anytime soon. The shares are currently trending sideways between the support of its 10- and 20-monthly moving averages and the $53 to $55 region. I'm not sure why the company's target price would be set in all-time high range, but I am not one of the expert analysts.

Continue reading FBR Downgrades Chubb, Sending Shares Lower

Can Genworth Financial Live Up to Its New Price Target?

Genworth Financial (GNW) attracted some mixed attention Tuesday. While the insurance issue started off on the right foot with a price-target boost from KBW, the stock was then slapped with a credit-rating downgrade from Standard & Poor's.

Beginning with KBW, the brokerage firm adjusted its price targets on a slew of U.S. insurers Tuesday morning. In a note to clients, KBW explained that it's overweight on the insurance sector for 2010, because it expects a significant earnings recovery and a modest revenue rebound for the group.

Continue reading Can Genworth Financial Live Up to Its New Price Target?

Tyson Foods downgraded by JPMorgan

Bright and early on this fine Wednesday morning, JPMorgan downgraded Tyson Foods (TSN) to Neutral from Overweight. The brokerage gave four reasons for the downgrade: valuation, recent rises in corn and hog prices, a looming supply increase from competitor Sanderson Farms (SAFM), and uncertainty from Pilgrim's Pride.

All of these reasons are perfectly valid for the downgrade, but I want to focus on the valuation aspect of the downgrade. Technically, TSN faces overhead resistance in the $14 region, which is significant as the shares are currently ascending through the upper $12 region. The $14 level spurned the shares earlier this year, sending them into a steady decline back to support at the $11 region.

Continue reading Tyson Foods downgraded by JPMorgan

Goldman Sachs upgrades banks, Wells Fargo rallies

Monday morning has greeted the Street on an optimistic note toward large banks, as Goldman Sachs (NYSE: GS) has upped its coverage on the banking sector to "attractive" from "neutral." Goldman went as far as to name some specific banks, including Wells Fargo (NYSE: WFC), which it upped to "buy."

Goldman believes that Wells Fargo's capital position is improving, with it eventually benefiting from its takeover of Wachovia. The brokerage stated that Wells Fargo purchased Wachovia at a "distressed price" and that will help its assets increase 70% from the second quarter of 2007 to the second quarter of 2009.

Continue reading Goldman Sachs upgrades banks, Wells Fargo rallies

Next Page >

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 10:56 AM

Hot Stocks

General Electric

18.875-0.255(-1.33)

Alcoa

10.29-0.35(-3.29)

Apple Inc

493.42+0.25(+0.05)

Google Inc 'A'

605.91-5.55(-0.91)

Bank of America

8.07-0.11(-1.34)

Wal-Mart Stores

61.90-0.06(-0.10)

Exxon Mobil Corp

83.80-1.08(-1.27)

Ford

12.44-0.25(-1.97)

Citigroup

32.925-0.735(-2.18)

IBM

192.42-0.71(-0.37)

Yahoo

16.14+0.14(+0.88)

Starbucks

48.82-0.38(-0.77)

Microsoft

30.495-0.275(-0.89)

Home Depot

45.33+0.06(+0.13)

DailyFinance Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

Page Loaded in 1328975809641 ms.