Analyst Upgrades

• Marriott (MAR) to outperform from market perform at Wells Fargo.
• Quest Diagnostics (DGX) and Owens-Illinois (OI) to outperform from neutral at Credit Suisse.
• FirstMerit (FMER) to outperform from perform at Oppenheimer.
• Safeway (SWY) to hold from sell at Citigroup.
• Babcock & Wilcox (BWC) to buy from neutral, as well as Jacobs Engineering (JEC) and W. R. Berkley (WRB) to neutral from sell, at Goldman.
• Pioneer Natural (PXD) to overweight from equal weight at Barclays.
• Teekay Tankers (TNK) to buy from underperform at BofA/Merrill.

Continue reading Analyst Calls: BP, DGX, DNDN, MAR, PM, PXD, SWY, TNK, TRV ...

Analyst Calls: BP, DGX, DNDN, MAR, PM, PXD, SWY, TNK, TRV ... originally appeared on BloggingStocks on Tue, 29 Mar 2011 11:00:00 EST. Please see our terms for use of feeds.

Grocery store chain Safeway (SWY), first discussed here on February 20, 2009, at a price of $20.09, has retaken the key 50-day moving average, providing encouragement for investors who have been patient with the stock.

Intense competition will pressure grocery prices, hurting Safeway's revenue, but the view from here argues the worst is over concerning store traffic. In California, a major market for Safeway, the company's sales are likely to increase 2% to 3.5% in 2011. Further, Safeway should be able to pass along at least some food-cost inflation to consumers. Note: Any sustained economic retrenchment by the California market negates the above.

Continue reading Safeway: Grocery Sector Survivor

Safeway: Grocery Sector Survivor originally appeared on BloggingStocks on Mon, 28 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

Kroger (KR) isn't far off from its 52-week high. The stock closed Friday at a price of $23.60; the top quote for the year is $24.14. The range has been tight for the shares: the 52-week low is $19.08. Earlier in the week, the supermarket concern posted earnings for the fourth quarter. How were the results?

They weren't bad. According to Reuters, Q4 profit on an adjusted basis came in at 46 cents per share. This turned out to be two pennies ahead of Wall Street's overall estimate. Even better, identical-store sales excluding the effect of fuel transactions increased 3.8%. I'm sure those who own Safeway (SWY) might be a little jealous on the latter count since their company experienced a decline in this metric.

Continue reading Kroger Delivers Good Q4 Results, but Is the Stock a Buy?

Kroger Delivers Good Q4 Results, but Is the Stock a Buy? originally appeared on BloggingStocks on Sat, 05 Mar 2011 12:50:00 EST. Please see our terms for use of feeds.

Safeway (SWY) overall option implied volatility of 28 is near its 26-week average of 29, according to Track Data, suggesting nondirectional movement into its March 9 analyst meeting.

Nokia (NOK) volatility is near ten-month lows. Nokia April and July put option implied volatility is at 38, below its 26-week average of 44, according to Track Data, suggesting decreasing price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Safeway Volatility Flat into Analyst Meeting originally appeared on BloggingStocks on Sat, 05 Mar 2011 08:10:00 EST. Please see our terms for use of feeds.

Safeway (SWY) finished Thursday's session down almost 2% to $21.62 after reporting fourth-quarter financial results. Trading volume was just under triple the 30-day average.

Safeway's bottom line came in at 62 cents per share, a number that was five pennies better than the overall projection, according to Reuters. We'll applaud that performance, but here's something that won't garner any accolades: same-store sales, without the effect of fuel transactions, went down 0.8%.

Continue reading Safeway After Q4 Earnings: Not on My List of Ideas

Safeway After Q4 Earnings: Not on My List of Ideas originally appeared on BloggingStocks on Fri, 25 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

Medtronic (MDT) March option implied volatility is at 27, according to Track Data, near its six-month average into its expected release of Q3 EPS on February 22, suggesting nondirectional price movement.

Safeway (SWY) overall option implied volatility is at 31, according to Track Data, near its 26-week average of 29 into its expected release of Q4 EPS on February 24, suggesting slightly larger price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Medtronic Volatility Flat; Shares Rally into Q3 Results and Revenue Guidance originally appeared on BloggingStocks on Sat, 19 Feb 2011 09:20:00 EST. Please see our terms for use of feeds.

The shares of grocery store chain Safeway Inc. (SWY), first discussed here on February 20, 2009, at a price of $20.09, have pulled backed toward $20 after testing $24 last autumn, but I still like the shares at this juncture. Here's why:

Intense competition will pressure grocery prices, hurting Safeway's revenue, but the view from here argues the worst is over concerning store traffic in California, a major market for SWY.

Meanwhile, margins should increase slightly in 2011, aided by an improved product mix.

Continue reading Has Safeway's Pullback Created an Opportunity?

Has Safeway's Pullback Created an Opportunity? originally appeared on BloggingStocks on Thu, 27 Jan 2011 16:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Polo Ralph Lauren (RL) to buy from hold at Citigroup.
• Qualcomm (QCOM) to buy from neutral at Roth Capital.
• Walgreen (WAG) to conviction buy from neutral at Goldman.
• Rockwell (ROK) to outperform from neutral at Credit Suisse.
• Carnival (CCL) to buy from hold at Deutsche Bank.
• SunTrust (STI) and TD Bank (TD) to outperform from market perform at Keefe Bruyette.
• Hawaiian Electric (HE) to outperform from neutral at RW Baird.
• Essex Property Trust (ESS) to outperform from neutral at Macquarie.
• Amgen (AMGN) to neutral from underperform at BofA/Merrill.

Continue reading Analyst Calls: EBAY, ERIC, MMI, MSI, NKE, QCOM, RL, ROK, SWY, WAG ...

Analyst Calls: EBAY, ERIC, MMI, MSI, NKE, QCOM, RL, ROK, SWY, WAG ... originally appeared on BloggingStocks on Tue, 04 Jan 2011 11:00:00 EST. Please see our terms for use of feeds.

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.

Continue reading Safeway Heads to Safer Ground

Safeway Heads to Safer Ground originally appeared on BloggingStocks on Tue, 02 Nov 2010 14:00:00 EST. Please see our terms for use of feeds.

Options Update: Safeway Volatility Elevated into EPS, Harley Rallies originally appeared on BloggingStocks on Wed, 13 Oct 2010 16:40:00 EST. Please see our terms for use of feeds.

I first discussed Safeway Inc. (SWY), here on February 20, 2009, and shares of grocer have overcorrected with the Dow's recent pull-back, but the calculation is to stick with the trade.

Deflation price pressures in the dairy and produce categories and only a modest 1% increase in square footage have kept SWY's shares under pressure, and the sell/stop loss is not far away at $14.25.

Further, Safeway will need a substantial improvement in its California market, a key region for the company, moving forward. So far, the California recovery as been slower than expected.

Continue reading Safeway Swan-Dives

Safeway Swan-Dives originally appeared on BloggingStocks on Wed, 07 Jul 2010 12:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• BofA/Merrill upgraded Eastman Chemical (EMN) to buy from neutral and raised its target to $82 from $80. The analyst upgraded shares based on valuation and expectations for strong earnings from fibers and performance chemicals.
• Bernstein upgraded Hershey (HSY) to market perform from underperform based on strong near-term category growth.
• Janney Montgomery upgraded Actuant (ATU) to buy from neutral with a $25 price target following the company's Q3 results.
• Infinera (INFN) was upgraded to buy from hold at Stifel Nicolaus.
• CTC Media (CTCM) was upgraded to buy from neutral at UBS.
• Williams (WMB) was upgraded to conviction buy from buy at Goldman.

Continue reading Analyst Calls: AAPL, ATU, BWLD, EMN, FMC, HSY, KR, MTB, SWY, WMB ...

Analyst Calls: AAPL, ATU, BWLD, EMN, FMC, HSY, KR, MTB, SWY, WMB ... originally appeared on BloggingStocks on Fri, 18 Jun 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Safeway Is in an Uptrend

Safeway Is in an Uptrend originally appeared on BloggingStocks on Tue, 23 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

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

• Berkshire Hathaway Inc. (BRK.A) announced improved results year over year, with book value up nearly 20%.
• BJ's Wholesale Club Inc. (BJ) Q4 earnings were in line with expectations but guidance for the year fell short.
• Cbeyond Inc. (CBEY) received an analyst's downgrade and lowered price target following its Q4 results.
• Costco Wholesale Corp. (COST) strong Q2 results fell short of analysts' estimates and shares declined.
• Dress Barn Inc. (DBRN) said it swung to a profit in Q2 and same-store sales increased, and it raised its outlook.

Continue reading Earnings Highlights: Berkshire Hathaway, Costco, Safeway, Staples, Wendy's ...

Earnings Highlights: Berkshire Hathaway, Costco, Safeway, Staples, Wendy's ... originally appeared on BloggingStocks on Sat, 06 Mar 2010 12:10:00 EST. Please see our terms for use of feeds.

Continue reading Safeway Drops on Weak 2010 Forecast

Safeway Drops on Weak 2010 Forecast originally appeared on BloggingStocks on Wed, 03 Mar 2010 13:20:00 EST. Please see our terms for use of feeds.

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

• American Public Education Inc. (APEI) received an analyst upgrade following the Q4 report and guidance.
• Autodesk Inc. (ADSK) traded higher after it reported swinging to a profit in Q4, but revenue declined year over year.
• Blackstone Group (BX) reported adjusted Q4 earnings, compared to a year-ago loss, and postive renvenue too.
• Campbell Soup Co. (CPB) higher Q2 earnings beat estimates, but shares fell on so-so revenue results.
• DreamWorks Animation SKG Inc. (DWA) lower Q4 earnings beat expectations but net income for the full year rose.
• Garmin Ltd. (GRMN) topped analysts' Q4 earnings expectations but shares fell after it warned of lower margins.

Continue reading Earnings Highlights: Campbell, Dreamworks, Home Depot, Safeway, Target ...

Earnings Highlights: Campbell, Dreamworks, Home Depot, Safeway, Target ... originally appeared on BloggingStocks on Sat, 27 Feb 2010 14:10:00 EST. Please see our terms for use of feeds.

It had a strong performance within a downward trend. That seems to be the characterization of Safeway Inc. (SWY), as revealed in the company's recent 2009 Q4 report. Thursday, the company reported a net loss of nearly $1.61 billion, which was in keeping with its own expectations. Through it all, Safeway Chairman, President and CEO, Steve Burd is taking what appears to be a prideful stance on the company's record 2009 free cash flow of $1.5 billion.

What I am seeing here is a company which has taken a firm and responsible hold of its interior financial workings as its field operations remain subject to economic whims and conditions which are largely out of company control. An active share buy back program, which looks to be perfectly timed, has apparently helped to place a respectable floor beneath the company's share price.

Continue reading Safeway Earnings Indications

Safeway Earnings Indications originally appeared on BloggingStocks on Fri, 26 Feb 2010 17:00:00 EST. Please see our terms for use of feeds.

Grocer Safeway Inc's (SWY) stock has meandered since the February 20, 2009, buy call at a price of $20.90, but I'm reiterating my rating. Here's why:

The view from here argues that the thesis that food margins sector-wide will decrease is flawed. Grocers will continue to see more consumers shift to 'generic' labels, but overall margins should stabilize as demand rebounds as the major lay-off period in the U.S. job market subsides in 2010.

Continue reading Safeway Has Survived the Recession

Safeway Has Survived the Recession originally appeared on BloggingStocks on Fri, 08 Jan 2010 17:30:00 EST. Please see our terms for use of feeds.

Kroger Co. (KR), which we also looked at in our Week in Preview, is scheduled to discuss its financial results for the third quarter of 2009 in a conference call Tuesday, December 8, at 10:00 AM (ET). You can catch the live webcast of the call on the company's website.

During the three months that ended in October, the Cincinnati-based grocer welcomed a new senior VP and raised its quarterly dividend. Analysts surveyed by Thomson Reuters expect Kroger to report that its earnings fell two cents per share from a year ago to $0.37 per share. But revenue for the quarter is expected to total $17.7 billion, marginally higher than a year ago.

Continue reading Kroger earnings preview: Holding its own as shares slide

Kroger earnings preview: Holding its own as shares slide originally appeared on BloggingStocks on Mon, 07 Dec 2009 15:50:00 EST. Please see our terms for use of feeds.