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

Outperforming Lennar Shrugs Off Downgrade originally appeared on BloggingStocks on Fri, 17 Dec 2010 15:00:00 EST. Please see our terms for use of feeds.

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

Unilever Receives a Double Upgrade originally appeared on BloggingStocks on Tue, 07 Dec 2010 12:30:00 EST. Please see our terms for use of feeds.

Suntech 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

Suntech Power Tumbles to New Annual Low Following Earnings originally appeared on BloggingStocks on Wed, 17 Nov 2010 11:30:00 EST. Please see our terms for use of feeds.

Verizon (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

Verizon Drops on Dividend Concerns originally appeared on BloggingStocks on Tue, 12 Oct 2010 14:00:00 EST. Please see our terms for use of feeds.

AutoZone 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?

Earnings Preview: Can AutoZone Rev Higher After Q4 Report? originally appeared on BloggingStocks on Mon, 20 Sep 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Analysts Upgrade BP to Buy?

Analysts Upgrade BP to Buy? originally appeared on BloggingStocks on Thu, 17 Jun 2010 10:00:00 EST. Please see our terms for use of feeds.

Right 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

Put Volume Spikes on Autodesk originally appeared on BloggingStocks on Wed, 09 Jun 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading AIG Downgraded by Keefe Bruyette

AIG Downgraded by Keefe Bruyette originally appeared on BloggingStocks on Tue, 27 Apr 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading eBay Stock Dips, Still a Good Deal?

eBay Stock Dips, Still a Good Deal? originally appeared on BloggingStocks on Fri, 09 Apr 2010 17:20:00 EST. Please see our terms for use of feeds.

Continue reading Alcoa Downgraded Ahead of Monday's Earnings

Alcoa Downgraded Ahead of Monday's Earnings originally appeared on BloggingStocks on Fri, 09 Apr 2010 09:30:00 EST. Please see our terms for use of feeds.

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

Comerica Selling Stock to Repay TARP Debt originally appeared on BloggingStocks on Tue, 09 Mar 2010 10:30:00 EST. Please see our terms for use of feeds.

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

FBR Downgrades Chubb, Sending Shares Lower originally appeared on BloggingStocks on Wed, 06 Jan 2010 13:40:00 EST. Please see our terms for use of feeds.

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?

Can Genworth Financial Live Up to Its New Price Target? originally appeared on BloggingStocks on Tue, 22 Dec 2009 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Tyson Foods downgraded by JPMorgan

Tyson Foods downgraded by JPMorgan originally appeared on BloggingStocks on Wed, 11 Nov 2009 10:00:00 EST. Please see our terms for use of feeds.

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

Goldman Sachs upgrades banks, Wells Fargo rallies originally appeared on BloggingStocks on Mon, 05 Oct 2009 11:20:00 EST. Please see our terms for use of feeds.

Bright and early this morning, Goldman Sachs downgraded gaming guru Activision Blizzard (NASDAQ: ATVI) from Conviction Buy to Buy. In a note to clients, the brokerage firm explained that it sees greater relative potential for near-term price appreciation in other stocks. Goldman maintains a six-month price target of $16 on ATVI, implying expected upside of more than 29% from the shares' closing price on Wednesday.

ATVI is a ripe target for downgrades, if only because analysts are so lopsidedly optimistic toward the "Guitar Hero" parent. Zacks reports that the equity has attracted no fewer than 18 Strong Buy recommendations, plus two Buys -- with not a single Hold, Sell, or Strong Sell to be found.

Continue reading Activision Blizzard booted from Conviction Buy list

Activision Blizzard booted from Conviction Buy list originally appeared on BloggingStocks on Thu, 01 Oct 2009 10:30:00 EST. Please see our terms for use of feeds.

Early this morning, Societe Generale cut GlaxoSmithKline (GSK) to "sell" from "hold." The brokerage blamed the downgrade on the "looming threat" of generics to GSK's respiratory drug Advair. SocGen believes the market is "underestimating" the chances for a generic competitor to Advair in the U.S. by 2011.

Technically, the stock is facing resistance at the $40 level -- a level that has provided a hurdle in the past. Along with this potential resistance is the possibility that the equity may slip back below its 20-month moving average. This trendline has acted as resistance in the past, and now that the shares are positioned north of this trendline, it could act as support. The problem is that this trendline is in a sharp descending pattern.

It isn't all bad news for GSK, the good news is that the equity should find some support from its 10-week moving average. With this trendline providing support, any potential drop from this morning's news could be limited.

Continue reading GlaxoSmithKline downgraded by SocGen

GlaxoSmithKline downgraded by SocGen originally appeared on BloggingStocks on Thu, 10 Sep 2009 08:00:00 EST. Please see our terms for use of feeds.

Late Thursday, Moody's Investors Service announced that it might downgrade its credit ratings for Southwest Airlines Co. (NYSE: LUV). In a statement, the ratings agency said the airline's Baa1 senior unsecured rating is at risk, due to the likelihood of weak demand trends persisting into 2010.

The downgrade warning comes shortly after LUV slashed airfares dramatically to remain competitive, with some one-way flights running as low as $30 during a recent promotion. "Even with the benefits of Southwest's advantageous cost structure, the current yield environment is likely to challenge Southwest to restore credit metrics to levels supportive of the current rating," said Moody's in a statement.

In addition to the fundamental concerns cited by Moody's, LUV is also facing some challenges on the charts. The stock has shed 52.8% during the past 52 weeks, and long-term resistance from its 10-month moving average looms directly overhead. This trendline hasn't been toppled on a monthly closing basis since September 2008.

Continue reading Southwest Airlines warned of possible Moody's downgrade

Southwest Airlines warned of possible Moody's downgrade originally appeared on BloggingStocks on Fri, 17 Jul 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Saks (SKS) and Nordstrom (JWN) out of fashion at Credit Suisse

Saks (SKS) and Nordstrom (JWN) out of fashion at Credit Suisse originally appeared on BloggingStocks on Thu, 28 May 2009 12:20:00 EST. Please see our terms for use of feeds.

Warning: This stuff may be a bit scary. Let's start off by reviewing the events of the past few days. Standard & Poor's downgraded the sovereign debt of Britain from "stable" to "negative" because Britain's debt could equal 100% of GDP and stay there for a few years.

Now word has traveled across the pond and has spread concern here in the U.S. Our debt is exploding and will also rise faster than our GDP. At the end of 2008, U.S. federal debt will equal 41% of GDP. It is expected to rise to 82% of GDP in 10 years and could reach 100% of GDP in fifteen years. Such a debt burden is incompatible with our triple-A rating.

It is feared that such a debt burden would be worse than the recent financial crisis. If we fast forward 10 years, the estimates are that our debt will be $1.2 trillion while our tax revenues would be $2 trillion. This means that we would need a 60% tax increase to balance the budget.

Continue reading High U.S. debt burden rattles policy makers

High U.S. debt burden rattles policy makers originally appeared on BloggingStocks on Wed, 27 May 2009 14:30:00 EST. Please see our terms for use of feeds.