Zacks Investment Research Zacks is the leading investment research firm focusing on equities earnings estimates and stock analysis for the individual investor, including stock picks, stock screening, portfolio stock tracker and stock screeners. http://so-l.ru/news/source/zacks_investment_research Fri, 17 Nov 2017 22:23:13 +0300 <![CDATA[Upcoming Earnings Reports to Watch: CRM, HPE, DE]]> We have already moved past the traditionally busy stretch of earnings season, but there are still several key reports to look forward to next week. So far, Q3 earnings have been strong across the board, so it will be interesting to see whether these reports will continue that trend and inspire strong trading for the remainder of the calendar year.

With that said, investors can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.

And today, we’ve made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected the biggest reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of November 20.

  1. Salesfore.com CRM

Cloud computing and customer relations giant Salesforce is scheduled to report its latest earnings results after the market closes on November 21. Salesforce has never missed the Zacks Consensus Estimate for earnings, and shares of the company are up over 56% so far this year. Nevertheless, increased competition in the cloud CRM space, as well as expensive international investments, could create new pressures this quarter.

Based on our latest consensus estimates, we expect Salesforce to report earnings of 37 cents per share and revenues of $2.65 billion, which would represent year-over-year growth of 52% and 23%, respectively. Investors will want to focus on the company's international growth, as a series of strategic partnerships and investments have made this segment the company's key growth catalyst.

 

  1. Hewlett Packard Enterprise HPE

Hewlett Packard Enterprise is slated to release its latest earnings report after the bell on November 21. Things have been relatively up and down for HPE since its split from the former Hewlett-Packard Company in late-2015. Still, the company is coming off a strong earnings beat in the most recent quarter, and a recent spin-off could help improve margins.

According to our latest consensus estimates, HPE is poised to post earnings of 28 cents per share and revenues of $7.71 billion. During the third-quarter of fiscal 2017, the company sold its Software business to British firm Micro Focus, so the most important year-over-year comparison for investors to keep an eye on will be in the net margin category.

 

  1. Deere & Company DE

Agricultural equipment behemoth Deere & Company is scheduled to report its latest earnings results before the market opens on November 22. Deere has met or surpassed the Zacks Consensus Estimate for earnings in 13 consecutive quarters, and the company's stock has gained more than 30% this year.

Based on our current consensus estimates, we expect DE to report earnings $1.42 per share and revenues of $6.91 billion, which would represent year-over-year growth of 58% and 22%, respectively. Typically, Deere & Company earnings reports serve as an important bellwether for the agricultural industry, and investors will anticipate more news on the company's pending acquisition of Wirtgen.

 

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
 
Salesforce.com Inc (CRM): Free Stock Analysis Report
 
Deere & Company (DE): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research]]>
http://so-l.ru/news/y/2017_11_17_upcoming_earnings_reports_to_watch_crm Fri, 17 Nov 2017 21:30:00 +0300
<![CDATA[Understanding the True Cost of Load Fees in Mutual Funds]]> One of the most discussed items of the mutual fund universe are Loads; otherwise known as mutual fund sales charges, or Shareholder Fees.  There are several different kinds of Loads, but essentially they are all very similar, and the end result is that the loads take money out of your return either before, during, or after your investment in the fund.  

In theory, the purpose for the Loads is that you are paying for an expert to buy, and sell the best stocks for the fund.  For this expert stock picking you pay (for Loaded Mutual Funds) a load, or a sales fee for the expert’s knowledge of the markets.  While this seems normal for most Americans (paying for expert service), most Americans don’t realize how much of their return is going towards these loads.  

There are several different names for these fees; Sales Loads, Redemption fee, Exchange fee, Account fee, and Purchase fee.  These are referred to as Shareholder Fees in the Fund’s prospectus.  Further, there are also Annual Fund Operating Expenses, which include Management Fees, Distribution (12-b-1) fees, Other Expenses, and Total Annual Fund Operating Expenses.  All Loads have to be disclosed in the fund’s prospectus.  

3 Most Common Types of Fees, and What they Cost the Investor

The most common, is called the Front-End Load.  This basically states that the instant you purchase a particular fund, you pay a sales fee, typically around 5% on the total amount you are investing.  While the SEC does not limit the percentage of a sales load a particular fund may charge, the Financial Industry Regulatory Agency (FINRA) imposes limits on some fees, specifically an 8.5% maximum sales load.  

Investment Example:  If you invest $5,000 into a fund with a 5% front-end, you are paying $250 in Front-ended fees.  So, before you have any shares of the mutual fund, the broker takes out $250 from your initial $5,000 investment.  So, you are now only investing $4,750 dollars (assuming no further fees) to invest into the fund’s shares.  

The next most common are Deferred Sales Charges, or Back End Load, which is when the fee is enacted when the shareholder sells the fund shares.  There is a caveat to this sort of fee, and you need to check with the prospectus to ensure that you, the investor fully understands the basis for the fee calculation.  Typically, but not always, the fund will take the lesser of either the initial investment, or the value of the investment at the time of sale.  

As an investor, you should be aware, this is an area where investors get raked over the coals on their returns because there is typically a thing called CDSL that is attached with Back End Loaded fees.  CDSL, or Contingent Deferred Sales Load, is the most common type of back end sales load.  The total fee for this fund is calculated by how long the investor holds the position.  On average, the typical CDSL is 5%, if the investor holds the position for 1 year or less, 4% if the investor holds for 2 years or less, and all the way to 0% by the end of year 5.   On the surface that seems great for a long term holder, but our third type of fee comes into play.  

Funds with CDSL’s almost always have an annual fee called a 12b-1 fee attached to the fund.  And this is where un-savvy investors loose a big chunk of their returns.

As the chart below demonstrates, while the investor believes that they are lowering their Load cost by buying a CDSL fee fund because the investor thinks,  hey after 5 years I don’t have to pay any fees, because my CDSL went to 0% after the fifth year of the investment.   You would be wrong, and losing a lot of your total return on the investment.  While it is true the CDSL went to 0% in year 5, you will notice that the investor is still paying 6% when they sell the position.  This is the EXACT SAME amount you would have paid in year 1, as in year 5, but it gets worse as the years go on.   In year 10, you are not paying 0%, you are paying 10%, and 1% more each year till you sell the entire position.

This is due to the 12b-1 fee.  This fee can be as high as 1% (and typically is) for a back loaded fund, and in some cases can be as much as 0.25% on the Font End Load.  This is where most investors get tripped up, and end up paying a good portion of their gains to the broker.  As you can see in the chart above, the annual 1% fee creates a larger “commission” for the broker while being disguised as a way to decrease the investors cost.  

The 12b-1 fee is considered a “special marketing fee”, but the street calls it a disguised broker’s commission.  

Investment Example: If you were to invest the same $5,000 in a CDSL, with a 12b-1 of 1% each year your outflows each year would be, $300 in years 1-6, and $350 in year 7, $400 in year 8, $450 in year 9, and $500 in year 10.  As you can see each year you are paying more and more in fees with the CDSL.  

Bottom Line

When choosing a mutual fund, it is detrimental to the investor not to check out all the fees associated with the fund.  This could be the difference in 10’s of thousands of dollars over the long term for the investor.  All the appropriate information will be located in the fund’s Prospectus under the heading Shareholder Fees, and is a must read for any savvy investor.

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http://so-l.ru/news/y/2017_11_17_understanding_the_true_cost_of_load_fees Fri, 17 Nov 2017 21:29:00 +0300
<![CDATA[Time for High Beta & Momentum ETFs?]]> Wall Street turned around on Nov 16, recovering from its recent weakness. Passage of a tax bill by the House and earnings-induced gains in Wal-Mart WMT and Cisco CSCO are deemed to the key drivers, per Reuters. Wal-Mart jumped about 11% to a record high “after reporting its strongest U.S. revenue growth since 2009 and soaring online sales.” Cisco surpassed its “highest level since February 2001” (read: ETFs Set to Surge as Cisco Sees Revenue Growth in 2 Years).

Another big development that fueled the Wall Street rally was the passing of House Republicans’ tax plan in a 227-205 vote. This will cut the corporate tax rate, reduce burden for most individuals and add ‘an estimated $1.4 trillion to the federal deficit over the next decade’. The Senate is discussing its own version of the plan, wherein the Republicans hold thin majority. So, it is still unclear if the chamber will have sufficient votes to pass it.

The Senate plan also deviates from the House bill on some grounds. The Senate now wants to defer the corporate tax-rate cut by a year. It also intends to repeal a main provision of the Obamacare law — “saving the government $318 billion over 10 years to help pay for the tax cuts, but leaving 13 million Americans uninsured by 2027, according to official estimates” (read: Value ETFs & Stocks to Buy on Tax Cut Delay Concerns).

Though there are hurdles on the road to cutting the tax, investors can join the new-found optimism in the market and play high beta and momentum ETFs as long as the trend is alive.  

Below we highlight a few high beta and momentum ETFs that investors may consider.

High Beta ETFs

Beta is directly related to market movement. Notably, high beta funds tend to rise or fall more than the stock market and are thus more volatile. When markets soar, high beta funds experience larger gains than the broader market counterparts and thus, outpace their rivals.

PowerShares S&P 500 High Beta Portfolio SPHB

This fund tracks the performance of 99 stocks from the S&P 500 index with the highest realized volatility over the past 12 months. The fund charges 25 bps in fees.

Elkhorn Lunt Low Vol/High Beta Tactical ETF LVHB

The fund is based on the Lunt Capital US Large Cap Equity Rotation Index, which looks to switch between low-volatility and high beta stocks in the S&P 500 cohort. The strategy looks to attain alpha created by the huge dispersion between low volatility and high beta stocks. The fund charges 49 bps in fees.

High Momentum ETFs

Momentum investing might be an intriguing idea for those seeking higher returns in a short spell.

Fidelity Momentum Factor ETF FDMO

The Fidelity U.S. Momentum Factor Index reflects the performance of stocks of large and mid-capitalization U.S. companies that “exhibit positive momentum signals.” It charges 29 bps in fees.

iShares Edge MSCI USA Momentum Factor ETF MTUM

This ETF seeks to track the performance of large and mid-cap U.S. stocks exhibiting relatively higher momentum characteristics. The fund charges 15 bps in fees (see all large-cap ETFs here).

PowerShares DWA Momentum ETF PDP

The fund looks to track the Dorsey Wright Technical Leaders Index. The fund charges 63 bps in fees.

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ISHRS-MSCI US M (MTUM): ETF Research Reports
 
FID-MOM FACTOR (FDMO): ETF Research Reports
 
POWERSH-SP5 HBP (SPHB): ETF Research Reports
 
PWRSH-DWA MO PO (PDP): ETF Research Reports
 
ELKHN-LUNT LVHB (LVHB): ETF Research Reports
 
Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report
 
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http://so-l.ru/news/y/2017_11_17_time_for_high_beta_momentum_etfs Fri, 17 Nov 2017 21:23:00 +0300
<![CDATA[House Passes Tax Bill: Likely ETF Winners & Losers]]> The big development that fueled the Wall Street rally was the passing of House Republicans’ tax plan in a 227-205 vote. This will cut the corporate tax rate, reduce burden for most individuals and add ‘an estimated $1.4 trillion to the federal deficit over the next decade’. The Senate is discussing its own version of the plan, wherein the Republicans hold thin majority. So, it is still unclear if the chamber will have sufficient votes to pass it.

The Senate plan also deviates from the House bill on some grounds. The Senate now wants to defer the corporate tax-rate cut by a year. It also intends to repeal a main provision of the Obamacare law — “saving the government $318 billion over 10 years to help pay for the tax cuts, but leaving 13 million Americans uninsured by 2027, according to official estimates.”

There are several hurdles in the way to tax cuts. Still, things are looking bright at this stage when it comes to tax reform and put these ETFs up for gains.

Winners

U.S. Tax Reform Fund TAXR

This newly launched fund looks to offer capital gains by investing in market segments that the issuer thinks “will be impacted by the enactment of changes to the U.S. Tax Code.” It charges 85 bps in fees (read: GOP Nears Tax Reform: Buy These ETFs).

Republican Policies Fund GOP

This new fund targets market segments that are likely to be moved (deemed by the issuer) by the enactment of Republican Policies. The fund charges 75 bps in fees.

First Trust Large Cap Growth AlphaDEX ETF FTC

Most analysts say that big corporates will benefit from these tax cuts. First, the House bill slashes the top rate of large companies’ tax payments from 35% to 20%, marking “the biggest one-time drop in the big-business tax rate ever.”

And then “more favorable treatment of income earned abroad, which is either not taxed or taxed at an even lower rate than 20 percent” should prove great for growth ETFs like FTC. Notably, large-cap stocks have considerable foreign exposure and are thus beneficiaries of such bills.

iShares U.S. Dividend and Buyback ETF DIVB

The new fund looks to track the Morningstar US Dividend and Buyback Index. The Trump administration is also proposing a move from the current worldwide tax system to a territorial system, letting companies to send their offshore profits back to the United States without extra taxes. This will result in extra cashes which may prove beneficial for shareholder value maximization.

Losers

SPDR S&P Homebuilders ETF XHB

The House tax plan rules out tax-exempt bonds that finance affordable housing. The House tax reform bill removes the bond, while the Senate bill sticks to it. As per Forbes, both tax plans invalidate “the benefits of the mortgage interest deduction for most homeowners by increasing the standard deduction and eliminating deductions for state-and-local income and sales taxes.”

Plus, while the House bill would permit up to $10,000 of property taxes on a home to be deducted, the Senate plan would tolerate no property tax deduction. So far, Americans resorted to this popular tax break to lower the purchase cost of home. The change may push up already-higher housing prices. As result, housing ETFs like XHB may come under pressure.

Health Care Select Sector SPDR ETF XLV

Republicans look to annual “all but a small handful of tax breaks.” Deduction for medical expenses is one of the to-be-expired tax breaks. Omitting the deduction will help Republicans with about $10 billion. Funds like XLV could thus feel pressure(read: Healthcare ETFs Head to Head: XLV vs. VHT).

iShares National Muni Bond ETF MUB

Muni bonds may lose luster if the Trump tax plan materializes. These bonds are excellent choices for investors seeking a steady stream of tax-free income. But with President Trump pledging for lower personal income tax rates, investors’ desire for a tax shelter in munis may be quelled. This may put pressure on funds like MUB (read: Trump Tax Plan & Muni Bond ETFs: What Investors Need to Know).

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SPDR-HLTH CR (XLV): ETF Research Reports
 
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ISHARS-NAMTF (MUB): ETF Research Reports
 
FT-LC GROWTH (FTC): ETF Research Reports
 
US-TAX REFORM (TAXR): ETF Research Reports
 
REP-POLICIES (GOP): ETF Research Reports
 
ISHR-US DIV BB (DIVB): ETF Research Reports
 
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http://so-l.ru/news/y/2017_11_17_house_passes_tax_bill_likely_etf_winner Fri, 17 Nov 2017 21:19:00 +0300
<![CDATA[INTC, TXN, NVDA: Which Chip Maker to Bet On Post-Q3 Earnings?]]> As of Nov 8, around 77.4% of the tech sector companies on the S&P 500 index reported their Q3 earnings results. Total earnings for these are up 23.2% from the same period last year on 10.9% higher revenues, with 81.3% surpassing EPS estimates and 87.5% beating on revenues.

Strong earnings performance by the tech sector put the spotlight on its major sub-sector, semiconductor. In this quarter, of the eight companies that make up the broader Zacks industry, six have already reported earnings, with five beating their Zacks Consensus Estimate.

Each of the three major semiconductor chip makers, Intel Corp. INTC, NVIDIA Corp. NVDA and Texas Instruments Inc. TXN may have fundamental differences but came up with upbeat third-quarter results. In this context, let us now perform a comparative analysis of the leading players in the Semiconductors sector to pick the best investment option based on their earnings scorecard.

Both Intel and NVIDIA have a Zacks Rank #1 (Strong Buy), while Texas Instruments has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Third-Quarter Earnings

Intel Corp. reported third-quarter non-GAAP earnings of $1.01 per share, which beat the Zacks Consensus Estimate by 21 cents. The figure surged 26.3% from the year-ago quarter and 40.3% sequentially. The strong earnings growth was driven by better-than-expected top-line performance and operating margin expansion.

Revenues totaled $16.15 billion, up 2.4% year over year and 9.4% quarter over quarter. The figure beat the Zacks Consensus Estimate of $15.71 billion. The top-line growth came on the back of strong data-centric growth. (Read More)

NVIDIA Corporation reported stellar fiscal third-quarter results, continuing its earnings streak for the 10th straight quarter. This graphic chip behemoth posted quarterly earnings of $1.33 per share on a non-GAAP basis, up nearly 60.2% year over year. The bottom line also came ahead of the Zacks Consensus Estimate of 94 cents.

Also, revenues surged 31.5% year over year to $2.636 billion, and comfortably surpassed the Zacks Consensus Estimate of $2.364 billion, as well as management’s projection of $2.35 billion. (Read More)

Texas Instruments reported third-quarter earnings of $1.26 per share, beating the consensus mark by 14 cents. Earnings also increased 34% year over year and 22.3% sequentially. Strong results were mainly driven by strength in the auto and industrial markets.

Revenues of $4.15 billion beat the Zacks Consensus Estimate by $199 million and were up 12% on a year-over-year basis and 11.5% sequentially. The top line came ahead of the guided range of $3.74–$4.06 billion. (Read More)

Guidance

Intel guided fourth-quarter revenues of around $16.3 billion, up 3% year over year excluding McAfee. The projected figure is better than the Zacks Consensus Estimate of $16.12 billion. Further, non-GAAP earnings are anticipated at 86 cents per share, up 15% on a year-over-year basis. The Zacks Consensus Estimate is currently pegged at 83 cents.

For fiscal fourth-quarter, NVIDIA expects revenues of approximately $2.65 billion, which is much above the Zacks Consensus Estimate of $2.44 billion.

Moreover, Texas Instruments expects revenues between $3.57 billion and $3.87 billion. The mid-point of the guidance is above the Zacks Consensus Estimate of $3.67 billion. Earnings for the quarter are expected in the range of $1.01 to $1.15 per share. The lower end of the range is in line with the Zacks Consensus Estimate.

Price Performance

In the last year, NVIDIA has outperformed the industry with an average gain of 126.7% compared with 53.1% increase for the latter. Although, Intel and Texas Instruments have advanced 30.6% and 35.4%, respectively in the last one year, both the companies underperformed the industry. NVIDIA is a clear winner on this count.

Earnings History and Estimate Revisions

All the three major chipmakers delivered positive surprises in each of the last four quarters. Intel, NVIDIA and Texas Instruments posted an average positive earnings surprise of 9.8%, 33.5% and 9.2%, respectively.

In the last 30 days, Intel’s current-quarter estimates increased by 4 cents to 86 cents per share, while that for the current year advanced from $3.00 to $3.23 per share. NVIDIA’s current-quarter estimates advanced from $0.96 to $1.13 last month while current-year estimates jumped by 52 cents to $4.13 per share.

Texas Instruments’ current-quarter estimates rose 7 cents to $1.08 last month and current-year estimates climbed from $4.13 to $4.33 per share. NVIDIA holds an edge over the other two companies with respect to both earnings history and estimate revisions.

Valuation

The price-to-sales ratio is particularly relevant in a consumer-focused industry like semiconductor manufacturing, the fortunes of which are dictated by the variation in sales. This ratio is ideal for comparing companies from same sector by dividing the stock price of the company with its sales.

Coming to the three stocks under consideration, NVIDIA and Texas Instruments are overvalued than the industry, which has a P/S ratio of 4.59. NVIDIA is also pricier than the other two, since it has a P/S ratio of 11.76, higher than Intel’s and Texas Instruments’ respective reading of 3.36 and 6.25. Clearly NVIDIA is overvalued than both Intel and Texas Instruments.

Conclusion

In our comparative analysis, we find that the P/S ratio of NVIDIA is higher than both Intel and Texas Instruments. However, when considering price performance, NVIDIA holds a strong edge over Intel and Texas Instruments. Moreover, in the third quarter, NVIDIA witnessed considerably better year-over-year earnings growth than the other two chipmakers.

Additionally, when we take a more comprehensive look at the companies’ previous earnings performance and estimate revisions, NVIDIA is clearly the best stock among the three chipmakers. In this respect, it can be concluded that NVIDIA is clearly a better investment proposition than Intel and Texas Instruments.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Intel Corporation (INTC): Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN): Free Stock Analysis Report
 
NVIDIA Corporation (NVDA): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research]]>
http://so-l.ru/news/y/2017_11_17_intc_txn_nvda_which_chip_maker_to_bet Fri, 17 Nov 2017 21:15:00 +0300
<![CDATA[House Approves $1.5-Trillion Tax Reform Bill: Top 5 Gainers]]> Congress’s nonpartisan scorekeeper in tax matters, the Joint Committee on Taxation, declared that the House Republicans passed an overhaul of the U.S. tax code that slashes corporate tax rates on Thursday.

Big banks will benefit immensely from the tax cut as this will likely bolster investments. Lower tax rates also drive after-tax earnings for tech behemoths as it leads to repatriation of trillions of dollars held abroad by such companies. Tech companies can use this extra cash for research and development, as well as mergers and acquisitions.

Small-cap companies are poised to gain enormously as well, mostly because they have been paying more taxes than their counterparts. Thus, investors should focus on multinational financial and technology service providers, as well as small-cap players, that can make the most of the slashed corporate tax rate.

Senate Passes Tax Bill

House Republicans approved a monumental bill to enact $1.5 trillion in tax cuts for businesses and individuals. The bill cleared the House 227-205, without Democratic support. The Democrats believed that it is a give-away to the wealthiest Americans. 13 Republicans representing districts with an already high average state and local tax deduction also voted against the bill.

Such a high tax deduction will be scaled back significantly under the House plan. Nevertheless, the Joint Committee on Taxation said that around 92% of Americans will pay less or the same taxes until 2023 under the new plan.

Republicans, in the meantime, have been rooting for a change in tax codes for several years but have repeatedly failed to garner support in the House until Trump’s election. Trump said that such a bill is a “big, beautiful Christmas present” for families, while the White House press secretary said that “a simple, fair, and competitive tax code will be rocket fuel for our economy, and it's within our reach.”

This has set the stage for Republicans to execute their ‘once-in-a-generation’ opportunity to overhaul an outdated U.S. tax code, providing financial relief to families and making American businesses more competitive globally.

Great for Banks & Tech Companies

The bill trims the corporate tax rate from 35% to 20%, making it the biggest one-time drop in big business tax rates ever.

Banks face a high tax burden, which makes them big gainers when tax rates go down. As per KBW estimates, JPMorgan Chase & Co. JPM, Wells Fargo & Co WFC and Bank of America Corp BAC will enjoy a 20% or more hike in profits if the corporate tax rate is cut  to 20%.

Lower domestic tax rates will also result in repatriation of hundreds of billions of dollars in cash. This could help boost the economy and may cause interest rates to rise. Higher interest rates boost bank profits by increasing the spread between what banks earn by funding longer-term assets, such as loans, with shorter-term liabilities.

Let us also not forget that tech behemoths Apple Inc. AAPL, Alphabet GOOGL, Microsoft MSFT, Cisco Systems CSCO and Oracle ORCL hold 88% of their money overseas to avoid paying the 35% corporate tax rate on earnings. Thus, they are positioned to gain immensely under Trump’s tax reduction plan.

Small Caps Rally on House Vote

After the House passed the tax bill, small-cap stocks surged. After all, such companies have been paying taxes of more than 30% for quite some time, while their large-cap counterparts are paying close to 25%.

Moreover, Trump’s call for more protectionism and less global trade boosted small caps that mostly generate less than 20% of its revenues from overseas. In contrast, large-cap companies typically generate more than 30% of their sales from abroad.

The Russell 2000 Index, which comprises the smallest companies in terms of market capitalization, is up more than 27% since Trump was elected, while the S&P Small Cap 600 Index climbed more than 25% since the close of trading on Nov 8.

Top 5 Winners

Investors should double down on the hottest banking and tech bigwigs, as well as solid companies with smaller market capitalizations. We have, therefore, selected five relevant companies that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Eagle Bancorp, Inc. EGBN operates as the bank holding company for EagleBank that provides commercial and consumer banking services, primarily in the United States. Currently, the company has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings rose 1.5% over the last 60 days.

Eagle Bancorp’s expected growth rate for the current year is 15.3%, better than the industry’s expected gain of 10.1%. The company is also poised to grow its earnings by 8.5% in 2018. 

DXC Technology Company DXC provides information technology services and solutions, primarily in North America, Europe, Asia and Australia. The company sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings has gained 8.2% in the last 60 days.

DXC Technology’s expected growth rate for the current year is 138.3%, way higher than the industry’s expected gain of 4.2%. Additionally, the stock is anticipated to advance its earnings by 16.1% in the next year.

Adobe Systems Incorporated ADBE operates as a diversified software company worldwide. The stock has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings grew by 3.9% over the last 60 days.

Adobe Systems’ projected growth rate for the current year is 39.4%, better than the industry’s projected gain of 10.2%. The company is set to grow its earnings by a further 30.5% in 2018. You can see the complete list of today’s Zacks #1 Rank stocks here.

Craft Brew Alliance, Inc. BREW brews and sells craft beers and ciders under the Kona, Widmer Brothers, Redhook, Omission, and Square Mile brand names in the United States. Currently, the stock has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings advanced 3.9% in the last 60 days.

Craft Brew Alliance’s expected growth rate for the current year is 450%, way higher than the industry’s estimated rally of 12.2%. Also, the company is expected to expand its earnings by 27.3% next year.

Boot Barn Holdings, Inc. BOOT – a Zacks Rank #2 (Buy) company – is a lifestyle retail chain and operates specialty retail stores in the United States. The Zacks Consensus Estimate for its current-year earnings climbed 7% over the last 60 days.

Boot Barn’s projected growth rate for the current year is 10.6%, in contrast to the industry’s projected decline of 3.8%. The company's earnings are also set to grow by 20.4% in 2018. 

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http://so-l.ru/news/y/2017_11_17_house_approves_1_5_trillion_tax_reform Fri, 17 Nov 2017 20:00:00 +0300
<![CDATA[Top Ranked Momentum Stocks to Buy for November 17th]]> Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, November 17th:

Kennametal Inc. (KMT): This developer of tungsten carbides and ceramics has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings rising 13.2% over the last 60 days.

Kennametal Inc. Price and Consensus

Kennametal’s shares gained 1.6% over the last one month more than S&P 500’s gain of 1.1%. The company possesses a Momentum Score of A.

Kennametal Inc. Price

Planet Fitness, Inc. (PLNT): This operator of fitness centers has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.

Planet Fitness, Inc. Price and Consensus

Planet Fitness’ shares gained 17% over the last one month. The company possesses a Momentum Score of A.

Planet Fitness, Inc. Price

Allison Transmission Holdings, Inc. (ALSN): This manufacturer of fully-automatic transmissions has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 19.1% over the last 60 days.

Allison Transmission Holdings, Inc. Price and Consensus

Allison Transmission’s shares gained 10.4% over the last one month. The company possesses a Momentum Score of A.

Allison Transmission Holdings, Inc. Price

Care.com, Inc. (CRCM): This provider of online marketplace for finding and managing family care has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings rising 29.3% over the last 60 days.

Care.com, Inc. Price and Consensus

Care.com’s shares gained 11.3% over the last one month. The company possesses a Momentum Score of A.

Care.com, Inc. Price

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

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http://so-l.ru/news/y/2017_11_17_top_ranked_momentum_stocks_to_buy_for_no Fri, 17 Nov 2017 19:43:00 +0300
<![CDATA[Data Deluge]]> Housing Starts and Permits data has come out this morning, posting better-than-expected results and upward revisions for the previous month. October starts rose 13.7% to 1.29 million seasonally adjusted, annualized units. This is way up from September’s upwardly revised -3.2%, or 1.135 million units. Permits — a forward indicator on future housing starts — were +5.9% last month at just under 1.3 million, following another upwardly revised September read of -3.7%.

September, recall, had been ravaged by two major hurricanes making landfall in the continental U.S., as well as another one that ravaged the U.S. property of Puerto Rico. That housing metrics are this solid illustrates a strong bounce-back, and likely a more robust market than many analysts had earlier anticipated.

Q3 Earnings Retail Roundup

Two specialty retailers are trading up north of 20% in today’s pre-market on better-than-expected Q3 earnings reports released before the opening bell: Foot Locker FL +25% and Abercrombie & Fitch ANF +20%. The athletic shoe retailer posted 87 cents per share versus 80 cents in the Zacks consensus, on $1.87 billion in sales that surpassed the $1.84 billion anticipated. Both quarterly numbers are down year over year, but after a very tough Retail space in 2017 thus far, market participants see some traction ahead of the all-important earnings holiday shopping season.

Abercrombie & Fitch brought in 30 cents per share on $859 million in quarterly revenues, ahead of the 24 cents and $820 million expected. Earnings numbers year over year blew away the 2 cents per share in fiscal Q317 by more than 1300%, and is the second-straight positive earnings surprise this year.

And Zacks Rank #2 (Buy) retailer Buckle Inc. BKE is trading up 7% in the early market on a two-cent earnings beat to 41 cents per share. Sales were in-line with expectations at $224.3 million in the quarter. This marks Buckle’s third straight earnings beat, and today’s upswing in stock price has cut deeply into its -12.7% selloff since that start of 2017.

New Futuristic Fireworks from Tesla

Tesla TSLA CEO Elon Musk unveiled two new automotive products for the near future: a semi-self-driving electric semi truck and a new high-end roadster sportscar. The 500-mile range for the truck is said to offer 50% savings per mile versus a diesel truck on the road today, and Musk personally guaranteed the trucks would not breakdown for 1 million miles. Transport services company J.B. Hunt JBHT has already committed to buy multiple big rigs, which are scheduled for production in 2019.

The new Tesla roadster’s price tag is reportedly $200K to start, and is expected to begin production in 2020. It goes 0-60 in under 2 seconds. This news has sent Tesla shares up 4% in today’s pre-market after tumbling 11% this month previously, on doubts of quality for the forthcoming Model 3 and issues with the already released Model X crossover vehicle. Tesla shares are up 46% year to date.


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http://so-l.ru/news/y/2017_11_17_data_deluge Fri, 17 Nov 2017 19:38:00 +0300
<![CDATA[Ballard Power in $9M Deal With Siemens for Fuel Cell Engine]]> Ballard Power Systems, Inc. BLDP announced that it has signed a Development Agreement worth $9 million with Siemens AG for developing a zero-emission fuel cell engine. Per the agreement, the company’s 200 kilowatt (KW) fuel cell engine will be utilized in Siemens’ trains in its Mireo railway platform.          

The Mireo train platform features energy-efficient components and intelligent onboard network management that will enable the Mireo rail trains to consume 25% less energy than conventional trains. Notably, once Ballard Power’s fuel cell engines are developed, they will be used to run the energy-efficient Mireo trains.

Ballard Power is expected to gain from this deal. The increase in demand for fuel cell technology from domestic and international clients is expected to boost the order book of the company.

Fuel Cell Technology for Cleaner Future

Fuel cells have become a viable option for vehicles due to inherent zero emissions, reliability and economic benefits. Consequently, this has increased the demand for fuel cell-technology which is cheaper than conventional power sources. Naturally, this technology is gaining importance and is witnessing increased adoption in trains, trams, transit buses and commercial trucks.

Notably, the Development Agreement with Siemens, backed by Ballard Power’s fuel cell technology, is anticipated to provide customers with flexible train solutions for various suburban routes. The deal will enable Siemens to reduce expenses on electrification and wire infrastructure. Further, this step is expected to enable the replacement of diesel-powered rail vehicles.

Ballard Power along with other companies like Plug Power PLUG and FuelCell Energy, Inc. FCEL are consistently investing in research and development activities to introduce novel fuel cell alternatives for a cleaner future.

Price Movement

Ballard Power Systems has outperformed the industry in the last year. The company’s shares have returned 141.8% compared with the industry’s rally of 47.6%.

The favorable price performance can be attributed to the company’s strong order backlog which touched $236.8 million at the end of third-quarter 2017 and improvement in year-to-date revenues by 48%.

Zacks Rank

Ballard Power currently carries a Zacks Rank #3 (Hold). A better ranked stock from the same space is Stoneridge, Inc. SRI that has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stoneridge posted third-quarter 2017 earnings from continuing operations of 36 cents per share, beating the Zacks Consensus Estimate of 32 cents by 12.5%. The company’s 2017 estimates have increased to $1.49 per share from $1.46 per share in the last 30 days.

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Zacks Investment Research]]>
http://so-l.ru/news/y/2017_11_17_ballard_power_in_9m_deal_with_siemens_f Fri, 17 Nov 2017 19:37:00 +0300
<![CDATA[6 Winning U.S. Mutual Funds to Buy on Trumpiversary]]> U.S. mutual funds have witnessed steady growth in assets under management during President Donald Trump’s first year in office. Despite persistent doubts over the President’s ability to pass key political reforms, U.S. equity funds have registered strong inflows.

Moreover, optimism over Trump’s infrastructure development and tax reform policies, indications from the Fed about an imminent rate hike and an encouraging earnings season are expected to attract investors toward U.S. stock funds for a considerable time. Following these recent gains, the addition of domestic equity mutual funds to one’s portfolio might prove one of the most suitable investment options at this point of time.

U.S. Stock Funds Rally Upward

On Trumpiversary, data showed that U.S. equity mutual funds witnessed strong growth during the first year of this presidency. According to Lipper data, total assets under management for domestic equity funds (including ETFs) jumped 16.1% to close at $21.1 trillion for the twelve-month period ending Sep 30.

Additionally, equity mutual funds, including both domestic and global funds, witnessed the highest percentage increase among the six major asset types. Equity mutual funds rose 21.6% to $11.4 trillion, with two key Lipper Macro-Groups, U.S. diversified equity funds and sector funds increasing 26.7% and 16.9%, respectively.

One-Year Performance Details Through Oct. 3 By Lipper Macro-Groups  

Emerging Markets Funds27%
Developed International Markets Funds25.4%
Mixed-Asset Funds16.3%
World Taxable Fixed Income Funds5%
Alternatives Funds4.7%
Taxable Fixed Income Funds3.4%
Commodities Funds3.2%

Solid Inflows Contribute Most to Funds’ Asset Growth

Since Sep 30, 2016, U.S. mutual funds have attracted $691.2 billion of inflows, of which $686 billion have been invested in passively managed funds. Investors clearly favour U.S. equity funds, which got reflected after the asset types registered strong inflows.

Fund flow in U.S. equity funds was quite strong after investors shifted their focus more toward the passively managed equity funds over the actively managed funds. While $498.5 billion was added to passively managed equity funds, active funds registered outflows of $236 billion. Also, passively managed bond funds experienced $191.3 billion of inflows.

Buy These 6 Best-Performing U.S. Stocks Funds

Strong asset growth and steady inflows in U.S. equity funds on the first year of Trump’s Presidency calls for investors’ attention to six mutual funds that sport a Zacks Mutual Fund Rank #1 (Strong Buy). These equity funds also have impressive year-to-date (YTD) returns. Also, these funds have a low expense ratio and their minimum initial investment is within $5000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

DFA Tax-Managed US Small Cap DFTSX invests a bulk of its assets in equity securities of small-cap domestic companies. DFTSX seeks appreciation of capital for the long run as well as reduction of federal income taxes on returns.

DFTSX has an annual expense ratio of 0.52%, which is below the category average of 1.22%. The fund has one-month and three-month returns of 0.8% and 4.9%, respectively. The fund allocates more than 99% of its assets in U.S. stocks.

Fidelity Select Technology FSPTX seeks capital growth over the long run. FSPTX invests a large chunk of its assets in common stocks of companies primarily involved in production, development and sale of products used for technological advancement. The fund invests in both U.S. and non-U.S. companies. Factors including financial strength and economic condition are considered before investing in a company.

FSPTX has an annual expense ratio of 0.76%, which is below the category average of 1.42%. The fund has YTD returns of 54% and allocates more than 71.5% of its assets in U.S. stocks.

T. Rowe Price Value TRVLX seeks growth of capital for the long run by investing mainly in undervalued common stocks. TRVLX invests heavily in companies from different market-cap range, but focuses mainly in large-cap companies.

TRVLX has an annual expense ratio of 0.82%, which is below the category average of 1.10%. The fund has YTD returns of 15.5% and allocates 91.6% of its assets in U.S. stocks.

T. Rowe Price Capital Opportunity PRCOX invests the major portion of its assets in companies that are listed on the S&P 500 Index. PRCOX is expected to maintain company weights similar to the index. Though PRCOX invests in companies throughout the globe irrespective of market capitalization, it primarily focuses on acquiring common stocks of domestic large-cap firms.

PRCOX has an annual expense ratio of 0.70%, which is below the category average of 1.03%. The fund has YTD returns of 20.1% and allocates 96.4% of its assets in U.S. stocks.

John Hancock II Real Estate Securities Fund Class 1 JIREX seeks long-term capital growth and current income. JIREX invests the lion's share of its net assets in equity securities of domestic real estate companies and REITs. The fund may invest nearly 10% of its total assets in securities of non-U.S. real estate companies.

JIREX has an annual expense ratio of 0.79%, which is below the category average of 1.14%. The fund has YTD returns of 6.2% and allocates 97.4% of its assets in U.S. stocks.

Vanguard Value Index Investor VIVAX invests nearly all its assets in stocks of companies included on the CRSP US Large Cap Value Index. VIVAX seeks to replicate the performance of the index by investing a proportion of its assets in each stock as its weighting in the index.

VIVAX has an annual expense ratio of 0.18%, which is below the category average of 1.10%. The fund has YTD returns of 11.4% and allocates 98.8% of its assets in U.S. stocks.

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Zacks Investment Research]]>
http://so-l.ru/news/y/2017_11_17_6_winning_u_s_mutual_funds_to_buy_on_tr Fri, 17 Nov 2017 19:29:00 +0300
<![CDATA[Anadarko Petroleum Issues '18 Capex & Sales Volume Guidance]]> Anadarko Petroleum Corporation APC recently announced 2018 capital expectations and sales volume guidance.

Notably, the company expects to spend approximately $4.2-$4.6 billion in the form of total capital investments in 2018. Total sales volume is estimated to be in the range of 245-255 million barrels of oil equivalent per day (MBOE/d) for 2018, while 385--405 million barrels of oil per day (MBOP/d) is expected for 2018.

Breaking Down 2018 Capex & Sales Program

Anadarko Petroleum expects to spend approximately $2.1 billion in U.S. onshore upstream, operations. Moreover, the company plans to invest approximately $1.1 billion in Deepwater Gulf of Mexico operations, $0.55 billion in Midstream, $0.35 billion in Exploration and LNG and $0.15 billion in International Operations.

Moreover, Anadarko Petroleum will allocate approximately $900 million in upstream activities in the Delaware Basin of West Texas, along with another $500 million midstream investment. Through this, the company is striving to integrate and strengthen its position in the region. Notably, these investment plans along with phased development approach in the basin will boost the company’s oil sales volume during the second half of 2018. The company plans to average seven operated rigs and six completion crews in 2018.

In the DJ Basin of northeast Colorado, the company plans to invest approximately $950 million in upstream activities in 2018. With this, the company expects a 30% increase in its 2018 oil sales volume, on a year-over-year basis.

Outside the United States, Anadarko Petroleum will invest more than $150 million toward its international cash-generating operations in Algeria and Ghana in 2018. On the other hand, the company expects to spend $200 million in exploration next year.

Our View

Anadarko Petroleum’s focus on liquid rich regions, premium shale properties in the Delaware and Denver-Julesburg basins and the Deepwater Gulf of Mexico (GOM) has led to high sales volume in the third quarter. We expect substantial investment in these areas to help the company witness similar sales volume growth in the upcoming quarters as well.

In line with this, of the company’s above mentioned 2018 investment, 80% is directed toward the Delaware and DJ basins, including midstream and the deepwater GOM. The company’s recently issued sales guidance for 2018 reflects a 14% year-over-year increase in oil growth, thereby indicating its success in driving capital efficiency and business growth.

Anadarko Petroleum’s announcement of strong 2018 guidance and capital expenditure program places it in strong competition with other Oil-Gas Exploration majors like Denbury Resources Inc. DNR, Noble Midstream Partners LP NBLX and Northern Oil and Gas, Inc. NOG.

Price Movement

Anadarko Petroleum has underperformed the industry in the last three months. The company’s shares have lost 14% compared with the industry’s decline of 16.3%.

The underperformance can be attributed to the increasing dry hole expenses that the company has been incurring in past few months, which in turn is affecting its margins.

Zacks Rank

Anadarko Petroleum currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


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Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report
 
Noble Midstream Partners LP (NBLX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research]]>
http://so-l.ru/news/y/2017_11_17_anadarko_petroleum_issues_18_capex_sa Fri, 17 Nov 2017 19:24:00 +0300
<![CDATA[Abercrombie (ANF) Beats on Q3 Earnings & Sales, Stock Up]]> Abercrombie & Fitch Co. ANF reported robust third-quarter fiscal 2017, wherein both its earnings and sales beat the Zacks Consensus Estimate and improved year over year. Notably, this was the company’s second straight positive earnings surprise and the third consecutive sales beat.

Results gained from significant progress on its strategic initiatives and strength in Hollister as well as direct-to-customer business, amid a highly promotional retail backdrop.


 

Consequently, shares of this Zacks Rank #3 (Hold) stock surged 25.5% in the pre-market trading hours. Additionally, the company’s initiatives like strategic capital investments, cost saving efforts, loyalty and marketing programs have aided Abercrombie to outperform the industry in the last three months. The stock gained 29.9% compared with the industry’s growth of 14.1%.

Q3 Synopsis

The company posted third-quarter adjusted earnings of 30 cents per share outpacing the Zacks Consensus Estimate of 24 cents. Also, the bottom line increased substantially from 2 cents earned in the year-ago quarter. Currency tailwinds, net of hedging, were roughly 1 cent per share in the quarter.

Net sales of $859.1 million surpassed the Zacks Consensus Estimate of $820 million and grew 5% year over year. The upside was driven by comparable sales (comps) growth of 4% as well as currency tailwinds impacting sales by 1%.

Abercrombie & Fitch Company Price, Consensus and EPS Surprise

Abercrombie & Fitch Company Price, Consensus and EPS Surprise | Abercrombie & Fitch Company Quote

Brand-wise, net sales improved 10% to $508.1 million at Hollister but the same was down 2% to $351 million for Abercrombie.  From a geographical view point, net sales grew 4% and 5%, in the United States and international markets, respectively. Direct-to-consumer sales performed well and accounted for 23% of the net sales, recording a growth of 24%.

The company remains encouraged by comps performance as it marked the fourth consecutive quarter of sequential improvement, driven by its strategic initiatives. Further, on a segmental basis, comps for Hollister increased 8%, offset by a 2% decline at Abercrombie.

Gross profit margin, on a constant currency basis, contracted 80 basis points (bps) to 61.3%, owing to reduced average unit cost that was more than offset by lower average unit retail.

Abercrombie reported adjusted operating income of $37.3 million for the quarter, substantially up from adjusted operating income of $13.6 million recorded in the prior-year period.

Financials

Abercrombie ended the quarter with cash and cash equivalents of $459.3 million and gross borrowings under its term loan agreement of $268.3 million.

As of Oct 28, 2017, inventories were $570.5 million, up 11% from the prior-year period.

On Nov 14, the company declared its quarterly dividend of 20 cents per share on the Class A Common Stock. This will be payable on Dec 11, 2017, to shareholders of record as on Dec 1.

Outlook

Following third-quarter results, management provided guidance for fiscal 2017 and the fourth quarter. The company expects foreign currency to be a tailwind, reflecting slight gains in sales and operating income.

For the fiscal fourth quarter, comps are projected to be up low-single digits while sales are anticipated to be in the band of up mid- to high-single digits. This includes gains of nearly $38 million from the 53rd week and roughly $20 million from foreign currency.

However, gross margin is projected to decline roughly 100 bps from the prior-year rate of 59.3%. Also, operating expense, including other operating income, is expected to decrease nearly 1% from $553.7 million recorded in the prior-year period. Abercrombie also expects average shares outstanding of about 70 million shares in the quarter.

Furthermore, the company expects effective tax rate to be in the mid 30s range for both the fiscal year and the fourth quarter.

Management expects to introduce four full-price stores in the quarter, following five stores opened till date that includes two outlet stores. Also, it plans to shutter nearly 60 stores in the United States by the end of the fiscal year through natural lease expirations. This includes 14 stores which are closed year to date.

Additionally, the company envisions capital expenditures to be roughly $110 million for fiscal 2017, up from $100 million, guided earlier.

Looking for Solid Picks, Check These

Investors can count upon some better-ranked stocks in the same industry like Zumiez Inc. ZUMZ, Boot Barn Holdings, Inc. BOOT and The Children's Place, Inc. PLCE each carrying a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zumiez, with a long-term earnings growth rate of 18% has pulled off an average positive earnings surprise of 27.1% in the last four quarters.

Boot Barn Holdings, with a long-term earnings growth rate of 15.7% has delivered positive earnings surprise of 100% in the last quarter.

Children's Place, with a long-term earnings growth rate of 9% has come up with an average positive earnings surprise of 14% in the trailing four quarters.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
 
See the pot trades we're targeting>>


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Zumiez Inc. (ZUMZ): Free Stock Analysis Report
 
Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
 
Children's Place, Inc. (The) (PLCE): Free Stock Analysis Report
 
Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research]]>
http://so-l.ru/news/y/2017_11_17_abercrombie_anf_beats_on_q3_earnings Fri, 17 Nov 2017 19:10:00 +0300
<![CDATA[Williams-Sonoma (WSM) Earnings Meet, Revenues Beat in Q3]]> Shares of Williams-Sonoma Inc. WSM were down 8.5% in after-hours trading on Nov 16, after the company reported in-line results for the third quarter of fiscal 2017.

Adjusted earnings of 84 cents per share were in line with the Zacks Consensus Estimate. The figure also increased 7.7% from the year-ago level.

Net revenues of $1,299 million were slightly higher than the Zacks Consensus Estimate of $1,293 million and up 4.3% year over year. However, net revenues reflect an estimated $7.0 million impact of lost sales associated with the hurricanes in Texas, Florida and Puerto Rico.

Comparable Brand Revenues

Comparable brand revenues increased 3.3% in the quarter, compared with a 2.8% increase in the preceding quarter and 0.4% decline in the year-ago quarter.

The company’s namesake brand’s comparable brand revenues were up 2.3%, better than 0.1% growth in the prior-year quarter. West Elm’s comparable brand revenues increased 11.5% compared with the 12% rise in the prior-year quarter.

Pottery Barn’s comparable brand revenues were down 0.3% as compared with a 4.6% decline in the prior-year quarter. Pottery Barn Kids’ comparable brand revenues increased 0.1% as against 1% decline in the year-ago quarter. PBteen’s comparable brand revenues registered 3% growth against a 10.9% plunge in the year-ago quarter.

Williams-Sonoma, Inc. Price, Consensus and EPS Surprise

Segment Details

e-commerce: The segment reported net revenues of $690 million in the quarter, up 6.4% year over year. The upside was driven by West Elm brand, Williams-Sonoma brand, the company’s newer businesses Rejuvenation and Mark and Graham along with its international operations.

Retail: The segment reported net revenues of $609 million in the reported quarter, up 2.1% year over year, primarily driven by West Elm and Pottery Barn. The upside was driven by the company’s various retail initiatives, including in-home design services and store remodels.

Operating Highlights

Operating margin was 8.5% in the quarter, down 40 basis points (bps) from the year-ago quarter.

Gross margin was 35.9% down 90 bps from the year-ago figure.

Selling, general and administrative (SG&A) expenses were 27.4% of net revenues or $356 million in the quarter, reflecting a decrease of 60 bps year over year.

Merchandise inventories at the end of the quarter increased 10.6% to $1.18 billion from $1.06 billion in the prior-year quarter.
 
Another Update

Williams-Sonoma recently entered into a definitive agreement to acquire Outward, Inc. — a leading 3-D imaging and augmented reality platform for the home furnishings and decor industry. The deal is valued at $112 million and is expected to close by the end of this year.

The buyout is expected to enhance and extend Williams-Sonoma’s customer service platform and help develop technologies that will transform the shopping experience for home furnishing buyers.

Financials

Williams-Sonoma has cash and cash equivalents of $90.8 million as of Oct 29, 2017, compared with $75.4 million as of Oct 30, 2016.

During the quarter under review, the company repurchased 1.3 million shares of common stock at an average cost of $46.84 a share and a total cost of approximately $61 million. William-Sonoma has approximately $256 million remaining under its present stock repurchase authorization, as of Oct 29, 2017.

Fourth-Quarter Guidance

Williams-Sonoma expects fourth-quarter fiscal 2017 earnings per share in the band of $1.49 to $1.64.

The company expects net revenues in the band of $1,610 million to $1,675 million. Comparable brand revenues are likely to grow 2-6%.

Fiscal 2017 Guidance

The company raised its revenue guidance for fiscal 2017. It now expects revenues in the $5,225-$5,290 million range ($5,165-$5,265 million).

Williams-Sonoma expects earnings in the range of $3.45 to $3.60 per share ($3.45-$3.65 earlier).

Comparable brand revenues are likely to grow in the 2% to 4% range (1-3% expected earlier).

Operating margin is anticipated in the 9% to 9.2% range and tax rate between 35% and 36%.

Capital expenditures are projected in the $200-$220 million range for the year.

Zacks Rank & Stocks to Consider

Williams-Sonoma carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the  Retail-Wholesale sector are Alibaba Group Holding Limited BABA, Cracker Barrel Old Country Store, Inc. CBRL and Beacon Roofing Supply, Inc. BECN, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alibaba’s earnings are expected to increase 52.8% in fiscal 2018.

Cracker Barrel Old Country Store has a solid EPS surprise history, surpassing earnings estimates in each of the trailing four quarters, the average beat being 4.9%.

Beacon Roofing’s earnings are expected to increase 224% in fiscal 2018.

Looking for Stocks with Skyrocketing Upside?

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Williams-Sonoma, Inc. (WSM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
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http://so-l.ru/news/y/2017_11_17_williams_sonoma_wsm_earnings_meet_rev Fri, 17 Nov 2017 19:06:00 +0300
<![CDATA[Facebook (FB) Launches Creator App, Eyes More Video Content]]> Facebook Inc FB is keen on ramping up video content on its platform.

The company in a blog post announced that it has launched an app for creators to “manage their presence” Facebook. The app is now available on iOS and will be rolled out to Android users in the coming days.

Facebook said that Creators App will include a Live Creative Kit (to help go live with a lot of features for personalized broadcasts), Community Tab (to help connect with the Community on Facebook), Camera & stories (to help add camera effects and post on other platforms) and Insights (to help access metrics like Page views, videos and fans).

Facebook, Inc. Revenue (TTM)

Facebook, Inc. Revenue (TTM) | Facebook, Inc. Quote

Facebook has also launched a website for creators, which will assist creators to “find resources and tips on how to create great videos, connect with fans, and grow on Facebook.”

With this app, Facebook is looking to give some tough competition to Alphabet’s GOOGL YouTube.

Why the Push into Video?

Many tech giants including Facebook are eyeing the lucrative market of original programming. As the number of cord cutters increase, streaming services are become the next big business opportunity.

By bringing more video content, Facebook is trying to bring in more ad dollars, which remain the mainstay of the company’s revenues with over 95% contribution.

In August this year, Facebook had unveiled a new tab called “Watch” that will be exclusively dedicated to video viewing. In May, Facebook reportedly brought on board several content creators like ATTN, Vox Media, BuzzFeed and Group Nine Media(which target mostly millennials) to produce shows for its upcoming video service.

Besides Facebook, a host of other social media sites like Twitter TWTR and Snap Inc are trying to incorporate more and more video oriented content to bring in more ad dollars. Even Apple Inc AAPL is trying to increase its footprint in this market.

A couple of days back, per a CNBC report, research firm CCS Insight released its 12th annual set of industry predictions, which mentions the possible launch of a streaming service by Apple next year.

Despite being lucrative, this field is highly competitive. It is a well-known fact that YouTube is synonymous to video viewing. Also, Netflix and Amazon are the other top competitors in this arena with their award winning series. Reportedly, Netflix and Amazon will be spending $6 billion and $4.5 billion on content this year, respectively.

Zacks Rank and Share Price Movement

At present, Facebook carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has outperformed the industry in the last one year. Facebook’s shares have increased 53.5% compared with the industry’s gain of 24.9%.

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http://so-l.ru/news/y/2017_11_17_facebook_fb_launches_creator_app_eyes Fri, 17 Nov 2017 18:51:00 +0300
<![CDATA[CNA Financial (CNA) Looks Promising: Time to Add the Stock?]]> CNA Financial Inc. CNA has been witnessing estimate revisions over the past 30 days. This Zacks Rank #2 (Buy) property and casualty insurer remains promising, banking on a number of growth drivers.

Northbound Estimates: The stock has seen the Zacks Consensus Estimate for current-quarter earnings and 2018 being revised upward by 3.4% and 7.9%, respectively, over the last 30 days.

An Outperformer: Shares of CNA Financial have rallied 30.7% quarter to date, outperforming the industry’s growth of 10.9%. Its shares have also outperformed the S&P 500, having increased 14.9% over the same time frame.


Positive Earnings Surprise History: CNA Financial surpassed the Zacks Consensus Estimate in each of the trailing three quarters, with an average beat of 53.15%.

Growth Projections: The Zacks Consensus Estimate for earnings per share is $3.07 on revenues of $9.4 billion. While the top line improves 0.5% year over year, the bottom line rises 0.8%.  

For 2018, the Zacks Consensus Estimate for earnings per share is $3.42 on revenues of $9.5 billion, reflecting a year-over-year increase of 11.6% and 1.3%, respectively.

CNA Financial has expected long-term earnings per share growth of 5%.

Attractive Valuation: Looking at the company’s price-to-book ratio — the best multiple for valuing insurers because of large variations in their earnings results from one quarter to the next — shares are underpriced at the current level. The company has a trailing 12-month P/B ratio of 1.2, falling significantly below the industry average of 1.5. Undervalued shares with growth prospects are best investment bets. CNA Financial carries a Value Score of B.  

Back-tested results have shown that stocks with a Value Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.

Growth Drivers in Place

CNA Financial’s improving combined ratio reflects underwriting profitability even in a challenging operating environment.

The insurer also remains focused on its ongoing efforts to continuously enhance and improve management of the Long-Term Care business.

Given a gradual improvement in the rate environment, the company’s investment income has been increasing over the last few quarters and the momentum should continue with optimism surrounding more rate hikes.

Riding on sustained solid operational performance, the company boasts a robust capital position.

CNA Financial effectively deploys capital. The board of directors has hiked its quarterly dividend by 20% in the second quarter of 2017. The company has also paid a special dividend this year. A strong balance sheet and cash flows will continue to enable CNA Financial to engage in shareholder-friendly moves.

Other Stocks to Consider

A few other other top-ranked stocks in the same space are Infinity Property and Casualty Corporation IPCC, NMI Holdings Inc. NMIH and Radian Group Inc. RDN.

Infinity Property and Casualty provides personal automobile insurance products in the United States. The company’s average four-quarter surprise is 300.65% and it sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of the company have gained 23.4% year to date, outperforming the industry’s rally.

NMI Holdings provides private mortgage guaranty insurance services in the United States. NMI Holdings' average four-quarter surprise is 11.72%. and has a Zacks Rank #1. It's shares have soared 53.5% year to date, outperforming the industry’s growth.

Radian Group offers mortgage and real estate products plus services in the United States. The company's average four-quarter surprise is 4.52%. Shares of Radian Group have gained 15.6% year to date, outperforming its industry’s increase.

Looking for Stocks with Skyrocketing Upside?

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http://so-l.ru/news/y/2017_11_17_cna_financial_cna_looks_promising_tim Fri, 17 Nov 2017 18:41:00 +0300
<![CDATA[Analog Devices (ADI) Q4 Earnings to Ride on End Market Growth]]> Analog Devices, Inc. ADI, one of the world leaders in the design, manufacture and marketing of high-performance analog, mixed-signal and digital signal processing integrated circuits, will report fourth-quarter fiscal 2017 results on Nov 21, before the bell.

In the quarter, we expect strength across all end markets — consumer, communications, automotive and industrial to contribute significantly to the company’s top line.

Notably, Analog Devices shares have gained 24.6% year to date, underperforming the industry’s 27.2% rally.

What to Expect This Time Around?

Consumer

This segment is likely to improve both sequentially and year over year in the to-be-reported quarter driven by strength across prosumer and portable consumer applications. The Zacks Consensus Estimate for revenues from this end market is pegged at $306 million. In the fiscal third quarter, the segment increased 19% sequentially and 36% year over year.

Communications

It is also expected to perform well both sequentially as well as year over year as Analog Devices continues to see strength in wireline. The Zacks Consensus Estimate for communications revenues is pegged at $256 million. This segment’s fiscal third-quarter revenues were up 20% sequentially and 45% year over year.

Automotive

Carrying on the momentum of the fiscal third quarter (up 25% sequentially and a massive 69% year over year), the segment is expected to record further improvement in the soon-to-be reported quarter. Growth will be driven by emerging super trends like autonomous driving and the electrification of the powertrain.  The Zacks Consensus Estimate for automotive revenues is pegged at $241 million.

Industrial

This segment was up a massive 87% year over year in the fiscal third quarter and we expect the momentum to continue driven by broad-based strength in this highly diverse market. The Zacks Consensus Estimate for this segment’s revenues stands at $696 million.

Analog Devices, Inc. Price and EPS Surprise

What Our Model States?

Analog Devices has a Zacks Rank #2 (Buy) and an Earnings ESP of -0.49%, a combination that makes surprise prediction difficult. This is because, per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

We don’t recommend Sell-rated stocks (Zacks Rank #4 or #5) going into the earnings announcement.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Other stocks worth considering in the broader technology sector include Activision Blizzard, ATVI, Applied Materials AMAT and Alibaba BABA, each carrying Zacks Rank 2.

Long-term earnings per share growth rate for Activision, Applied Materials and Alibaba is projected to be 13.8%, 17.1% and 30.7%, respectively.

Looking for Stocks with Skyrocketing Upside?

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http://so-l.ru/news/y/2017_11_17_analog_devices_adi_q4_earnings_to_ride Fri, 17 Nov 2017 18:40:00 +0300
<![CDATA[Top Ranked Income Stocks to Buy for November 17th]]> Here are four stocks with buy rank and strong income characteristics for investors to consider today, November 17th:

Western Union Company (WU): This payment services provider has witnessed the Zacks Consensus Estimate for its current year earnings advancing 5.2% over the last 60 days.

Western Union Company (The) Price and Consensus

This Zacks Rank #2 (Buy) company has a dividend yield of 3.57%, compared with the industry average of 0.00%. Its five-year average dividend yield is 3.17%.

Western Union Company (The) Dividend Yield (TTM)

Arbor Realty Trust, Inc. (ABR): This specialized real estate finance company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.7% over the last 60 days.

Arbor Realty Trust Price and Consensus

This Zacks Rank #2 (Buy) company has a dividend yield of 9.26%, compared with the industry average of 3.99%. Its five-year average dividend yield is 7.97%.

Arbor Realty Trust Dividend Yield (TTM)

Vector Group Ltd. (VGR): This manufacturer and seller cigarettes has witnessed the Zacks Consensus Estimate for its current year earnings advancing 3.1% over the last 60 days.

Vector Group Ltd. Price and Consensus

This Zacks Rank #2 (Buy) company has a dividend yield of 7.36%, compared with the industry average of 2.14%. Its five-year average dividend yield is 7.95%.

Vector Group Ltd. Dividend Yield (TTM)

PBF Energy Inc. (PBF): This petroleum refiner and supplier, which carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 59% over the last 60 days.

PBF Energy Inc. Price and Consensus

This Zacks Rank #1 (Strong Buy) company has a dividend yield of 3.75%, compared with the industry average of 1.73%. Its five-year average dividend yield is 4.16%.

PBF Energy Inc. Dividend Yield (TTM)

See the full list of top ranked stocks here.

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To read this article on Zacks.com click here.]]>
http://so-l.ru/news/y/2017_11_17_top_ranked_income_stocks_to_buy_for_nove Fri, 17 Nov 2017 18:40:00 +0300
<![CDATA[Cisco (CSCO) Stock Hits 52-Week High Backed by Q1 Results]]> Shares of Cisco Systems Inc. CSCO rallied to a 52-week high of $36.67, eventually closing a tad lower at $35.88 on Nov 16.

The share price momentum can be primarily attributed to the company’s fiscal first-quarter 2018 earnings that came ahead of expectations. The company’s encouraging guidance has also been one of the tailwinds.

Cisco reported non-GAAP earnings of 61 cents per share in fiscal first-quarter 2018, beating the Zacks Consensus Estimate by a penny. Notably, revenues of $12.14 billion were almost in line with the Zacks Consensus Estimate. Acquisitions contributed 60 basis points (bps) to revenue growth in the quarter. Security and Applications revenues increased in the quarter.

The company raised second-quarter fiscal 2018 guidance on the back of order strength and improving traction in the subscription-based model.

Cisco stock has gained 18.7% year to date, substantially outperforming the 11.6% rally of the industry it belongs to.

 

Key Factors

Notably, Cisco’s wireless revenues were strong and demand for the HyperFlex data-center solution was solid during the first quarter. The company’s recently launched platform Cisco Intersight, aimed to simplify data center operations and a new portfolio of subscription offers called Business Critical and High Value Services powered by AI to predict future IT failures. These are anticipated to boost the top line going ahead.

Management is optimistic about the new subscription-based Catalyst 9000 switching platform that has been adopted by more than 1,100 customers within a short span of time since its release. The continuing customer shift to 10 gig, 40 gig and 100 gig architectures is also another positive.

Additionally, the company’s Application Centric Infrastructure (ACI) solution is currently used by more than 4K customers. The ACI solution was recently enhanced with new features that have aided growth.

The company’s collaboration with Telenor for the formation of WorkingGroupTwo (WG2) will provide a cloud solutions platform for assisting telecom operators in accelerating product innovation and marketing. This is expected to be a positive.

Moreover, the company completed the acquisition of Springpath, Viptela and Observable Networks during the quarter, which will add to its top line. The company also announced its plans to acquire BroadSoft for $1.9 billion.

We believe that all these factors have helped the company gain competitive edge against peers like Arista Networks ANET, Check Point Software Technologies CHKP and F5 Networks FFIV.

Zacks Rank

Cisco has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.     

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.  

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http://so-l.ru/news/y/2017_11_17_cisco_csco_stock_hits_52_week_high_bac Fri, 17 Nov 2017 18:37:00 +0300
<![CDATA[On Housing, Q3 Retail & New Tesla Products]]> Friday, November 17, 2017

Housing Starts and Permits data has come out this morning, posting better-than-expected results and upward revisions for the previous month. October starts rose 13.7% to 1.29 million seasonally adjusted, annualized units. This is way up from September’s upwardly revised -3.2%, or 1.135 million units. Permits — a forward indicator on future housing starts — were +5.9% last month at just under 1.3 million, following another upwardly revised September read of -3.7%.

September, recall, had been ravaged by two major hurricanes making landfall in the continental U.S., as well as another one that ravaged the U.S. property of Puerto Rico. That housing metrics are this solid illustrates a strong bounce-back, and likely a more robust market than many analysts had earlier anticipated.

Q3 Earnings Retail Roundup

Two specialty retailers are trading up north of 20% in today’s pre-market on better-than-expected Q3 earnings reports released before the opening bell: Foot Locker FL +25% and Abercrombie & Fitch ANF +20%. The athletic shoe retailer posted 87 cents per share versus 80 cents in the Zacks consensus, on $1.87 billion in sales that surpassed the $1.84 billion anticipated. Both quarterly numbers are down year over year, but after a very tough Retail space in 2017 thus far, market participants see some traction ahead of the all-important earnings holiday shopping season.

Abercrombie & Fitch brought in 30 cents per share on $859 million in quarterly revenues, ahead of the 24 cents and $820 million expected. Earnings numbers year over year blew away the 2 cents per share in fiscal Q317 by more than 1300%, and is the second-straight positive earnings surprise this year.

And Zacks Rank #2 (Buy) retailer Buckle Inc. BKE is trading up 7% in the early market on a two-cent earnings beat to 41 cents per share. Sales were in-line with expectations at $224.3 million in the quarter. This marks Buckle’s third straight earnings beat, and today’s upswing in stock price has cut deeply into its -12.7% selloff since that start of 2017.

New Futuristic Fireworks from Tesla

Tesla TSLA CEO Elon Musk unveiled two new automotive products for the near future: a semi-self-driving electric semi truck and a new high-end roadster sportscar. The 500-mile range for the truck is said to offer 50% savings per mile versus a diesel truck on the road today, and Musk personally guaranteed the trucks would not breakdown for 1 million miles. Transport services company J.B. Hunt JBHT has already committed to buy multiple big rigs, which are scheduled for production in 2019.

The new Tesla roadster’s price tag is reportedly $200K to start, and is expected to begin production in 2020. It goes 0-60 in under 2 seconds. This news has sent Tesla shares up 4% in today’s pre-market after tumbling 11% this month previously, on doubts of quality for the forthcoming Model 3 and issues with the already released Model X crossover vehicle. Tesla shares are up 46% year to date.

Mark Vickery
Senior Editor

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http://so-l.ru/news/y/2017_11_17_on_housing_q3_retail_new_tesla_produc Fri, 17 Nov 2017 18:35:00 +0300
<![CDATA[Applied Materials (AMAT) Beats on Q4 Earnings and Revenues]]> Applied Materials Inc. AMAT reported robust fiscal fourth-quarter 2017 results, with both the top and the bottom lines surpassing the Zacks Consensus Estimate.

The company’s pro forma earnings per share (EPS) of 93 cents beat the consensus mark by 2 cents and came in toward the higher end of the guided range of 86-94 cents. Earnings were up 8.1% sequentially and 40.9% year over year.

Revenues of $3.97 billion beat the consensus mark by $40 million and were at the high end of the guided range of $3.85-$4 billion. Revenues increased 6% sequentially and 20.4% year over year. The revenue growth was backed by higher demand in most of the regions.

Following the strong fiscal fourth-quarter results, the company’s share price increased 1.8%. Shares have increased a massive 79.3% year to date, slightly outperforming the industry’s gain of 70.9%.

 

This quarter Applied Materials’ revenues and earnings were at an all-time high. Inflection-focused innovation strategy was the primary growth driver. The company continues to witness technological advancements in semiconductor and display areas. 3D NAND, DRAM and patterning have led to significant market share gains.

Applied Materials has well-differentiated products and high market share in foundry and logic. It is significantly improving on its memory market share as well. Management expects robust double-digit growth in semiconductor, display and service businesses in 2018. It expects wafer fab equipment (WFE) spending in 2017 and 2018 combined to be well above the previous forecast of $90 billion.

Applied Materials remains strongly positioned in China where it continues to witness robust growth in semiconductor and display. Growing investments from Chinese domestic manufacturers have been the main catalysts.

Notably, the company has gained considerable success in expanding beyond semiconductors, particularly in display. Mobile OLEDs and large screen televisions are opening new market opportunities for Applied Materials.

Applied Materials sees significant opportunities from emerging trends on the semiconductor and display fronts such as artificial intelligence, big data, cloud infrastructure, Internet of Things (IoT), virtual reality and smart vehicles.

We believe that Applied Materials is in a great position to grow sustainably and profitably based on its strong pipeline of enabling technologies, supported by expanding opportunities on the semiconductor, service and display fronts.

Let’s delve deeper into the numbers.

Revenues by Segment

The Semiconductor Systems Group (SSG) contributed 61.3% of revenues, reflecting a decrease of 4% sequentially but increase of 14.3% year over year.

The second-largest contributor was Applied Global Services (AGS) with 20.9% revenue share. Segment revenues increased 5.7% sequentially and 19.9% year over year.

The Display segment was up 65.1% from the last quarter and 49.8% from the year-ago level, contributing 17.1% to revenues.

Revenues by Geography

Korea contributed 30% to revenues, Taiwan 18%, China 15%, Japan 13% and U.S. 10%. Southeast Asia contributed 8%, while Europe contributed 6%.

On a sequential basis, China and Korea were the weakest, declining 22.9% and 7.1% respectively. All the other regions improved sequentially.

On a year-over-year basis, Taiwan and Europe decreased 37.8% and 11.3%, respectively. All the other regions increased.

Applied Materials, Inc. Revenue (TTM)

Margins

Pro forma gross margin was 46.2%, down 42 basis points (bps) sequentially but up 245 bps from the year-ago quarter.

Applied Materials’ adjusted operating expenses of $700 million increased 4.9% sequentially and 14.9% from the year-ago quarter. Operating margin of 28.5% decreased 24 bps sequentially but increased 329 bps year over year.

Net Profit

On a pro-forma basis, Applied Materials reported net income of $1 billion, or 93 cents per share compared with $927 million or 86 cents in the prior quarter. In the year-ago quarter, Applied Materials had reported net income of $722 million or 66 cents per share.

Our pro-forma calculation excludes restructuring, acquisition-related, impairment and other charges as well as tax adjustments in the reported quarter.

On a GAAP basis, the company registered net profit of $982 million (91 cents per share) compared with $925 million (85 cents per share) in the previous quarter and $610 million (56 cents per share) a year ago.

Balance Sheet

At the end of fiscal fourth quarter, inventories increased to $2.93 billion from $2.88 billion in the previous quarter. Accounts receivables increased to $2.34 billion from $2.26 in the prior quarter.

Cash and cash equivalents balance was $5.01 billion compared with $5.28 billion in the prior quarter. Goodwill was 17.3% of the total assets.

The company generated $699 million in cash from operations. The company spent $124 million on capex and returned $492 million through stock repurchases and cash dividends to shareholders.

Guidance

Applied Materials also provided guidance for the first quarter of fiscal 2018. Revenues are expected between $4.00 and $4.20 billion, better than the Zacks Consensus Estimate of $3.96 billion. Non-GAAP EPS is expected to come in the range of 94 cents to $1.02, higher than the consensus mark of 91 cents.

Zacks Rank and Other Picks

Applied Materials carries a Zacks Rank 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other stocks worth considering in the broader technology sector include Activision Blizzard, ATVI, Baidu BIDU and Alibaba BABA, all carrying the same Zacks Rank as Applied Materials.

Long-term earnings per share growth rate for Activision, Baidu and Alibaba is projected to be 13.8%, 23.7% and 30.7%, respectively.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

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http://so-l.ru/news/y/2017_11_17_applied_materials_amat_beats_on_q4_ear Fri, 17 Nov 2017 18:33:00 +0300