Where Home Depot Earnings, Guidance Went Soft

Home Depot Inc. (NYSE: HD) reported fourth-quarter and full-year 2018 results before markets opened Tuesday. The home improvement store posted diluted net earnings per share (EPS) of $2.09 for the quarter on revenues of $26.5 billion. In the same period last year, the company reported EPS of $1.52 and revenues of $23.88 billion. Consensus estimates had called for EPS of $2.16 and revenues of $26.57 billion.

For the full year, Home Depot reported EPS of $9.73 on sales of $108.2 billion, compared with fiscal 2017 EPS of $7.29 and sales of $100.9 billion. Analysts had forecast EPS of $9.80 and sales of $108.38 billion.

Same-store sales rose 3.2% globally and 3.7% in the United States during the quarter. The company noted that the fourth quarter included 14 weeks compared to 13 weeks in the prior year. The extra week was not included in the same-store sales calculations.

Home Depot had forecast full-year sales growth at 7.2% year over year and hit the nail right on the head. Home Depot’s global same-store sales guidance for the full year had been a range of 5.3% to 5.5%. The actual increase was 5.2%.

More concerning to investors is the company’s forecast of 2019 same-store sales growth of 5%. That weaker outlook, combined with a lower-than-expected outlook for EPS, is not welcome news and is leading to a sell-off in Tuesday’s premarket trading.

CEO Craig Menear said:

We achieved record sales and net earnings in fiscal 2018, while making great progress on the strategic investments we laid out in December of 2017. We focused on enhancing the interconnected retail experience for our customers, providing localized and innovative product, and delivering best in class productivity. Our view on the health of the economy and the consumer, as well as the momentum of our strategic investments, supports our belief that we can deliver comparable sales growth of 5.0 percent in fiscal 2019.

Share repurchases totaled $9.96 billion for the year and are guided to $5 billion for 2019. Same-store sales growth is forecast at 3% and diluted EPS is forecast at $10.03, well short of a consensus analysts’ estimate of $10.26.

The stock traded down about 2.5% in Tuesday’s premarket session, at $185.29 in a 52-week range of $158.09 to $215.43. The 12-month consensus price target on the shares was $203.07 before this morning’s report.

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Despite Big 2019 Rally, Top Wall Street Strategist Sees Potential Danger Ahead

Equatorial Palm Oil (PAL) Shares Down 11.1%

Equatorial Palm Oil Plc. (LON:PAL)’s share price traded down 11.1% during mid-day trading on Thursday . The company traded as low as GBX 1.10 ($0.01) and last traded at GBX 1.20 ($0.02). 411,453 shares traded hands during trading, an increase of 3,875% from the average session volume of 10,350 shares. The stock had previously closed at GBX 1.35 ($0.02).

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Equatorial Palm Oil Company Profile (LON:PAL)

Equatorial Palm Oil plc, together with its subsidiaries, develops and produces crude palm oil in Liberia. It holds interests in the Palm Bay estate covering 20,234 hectares; and the Butaw estate comprising 46,539 hectares located in Sinoe County to the south-east of Monrovia. The company was founded in 2005 and is based in London, the United Kingdom.

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Qualcomm Just Made Another Huge 5G Chip Announcement

Wireless technology giant Qualcomm (NASDAQ:QCOM) announced its second-generation 5G cellular modem, known as the Snapdragon X55, earlier this month. The modem is a significant advancement from the company's first-generation 5G modem, known as the Snapdragon X50. 

Although there is a market for stand-alone cellular modems, the vast majority of smartphones use applications processors that also have the main cellular baseband processors integrated inside. That integration is popular because it allows smartphone makers to build smaller logic boards as well as potentially improve power efficiency.

Image source: Qualcomm.

On Feb. 25, Qualcomm announced a new, unnamed mobile applications processor that will have the Snapdragon X55 modem built inside. Here's why this is a big deal. 

5G device proliferation

Put simply, Qualcomm integrating a 5G modem into its next premium mobile applications processor should lead to a dramatic increase in the number of 5G-enabled smartphones out there in the wild. 

For example, if we look at Samsung's (NASDAQOTH:SSNLF) recently announced Galaxy S10-series of smartphones, the three main models in the lineup -- Galaxy S10e, Galaxy S10, and Galaxy S10+ -- don't have 5G capability at all. Instead, 5G is limited to an ultra-premium model, known as the Galaxy S10 5G, which pairs Qualcomm's Snapdragon 855 mobile applications processor with a stand-alone Qualcomm X50 5G modem. 

Once this new 5G mobile platform is out -- Qualcomm says it's sampling to customers now and will find its way into devices in the first half of 2020 -- every smartphone that uses that platform should come with 5G capability. So, I'd expect that all of the successors to the Galaxy S10-series smartphones will be 5G-enabled. 

Why this matters

If you're a Qualcomm investor, then this should matter to you for a couple of reasons. First, it looks like Qualcomm isn't letting its foot off the proverbial gas in terms of mobile processor technology -- this upcoming mobile platform with an integrated 5G modem should offer clear leadership in terms of modem technology, fortifying the company's position as the leading merchant vendor of premium mobile processors. 

Beyond that, though, the proliferation of 5G benefits Qualcomm in another important way -- dollar content growth in smartphones. I don't have insight into how Qualcomm plans to price this upcoming mobile platform, but I wouldn't be surprised if the company were able to enjoy some lift in selling price compared to the company's current Snapdragon 855 flagship processor. 

On top of that, Qualcomm has invested heavily in building out its efforts in RF front-end chips. In many flagship phones during the 4G era, these chips have been provided by third parties. However, in the age of 5G, Qualcomm seems to be gaining a lot of traction with such chips. 

According to Qualcomm CEO Steve Mollenkopf on the most recent earnings call, "nearly all of the devices related to these 5G design wins use our RF front-end solutions and we expect these design wins to have a meaningful positive impact to our RF front-end product line." (In this case, Mollenkopf is talking about the design wins for its initial Snapdragon X50 5G modem.)

The idea here is simple: As Qualcomm's 5G-enabled applications processors become more prevalent, the company's 5G RF front-end solution sales should enjoy significant growth. This content growth is especially important for Qualcomm as industrywide smartphone unit sales have continued to fall. 

Investor takeaway

Qualcomm's technology execution around 5G looks extremely strong. The company's core modem technology looks best-in-class, and the company isn't wasting time in integrating that differentiated 5G modem technology into applications processors that should enjoy broad adoption. 

Only time will tell if Qualcomm will be able to maintain the lead in 5G that it seems to be opening up, but it does appear that the early innings of the 5G transition should be very kind to the wireless technology giant.

Why Wayfair, Universal Display, and iQiyi Jumped Today

The stock market had another good session on Friday, with major indexes posting solid gains to finish the week. Investors focused largely on discussions about the next steps in trade talks between the U.S. and China, becoming more optimistic that the two sides will come to a favorable resolution of the disputes that have plagued the global economy for much of the past year. In addition, good news from several much-followed stocks fostered positive sentiment. Wayfair (NYSE:W), Universal Display (NASDAQ:OLED), and iQiyi (NASDAQ:IQ) were among the top performers. Here's why they did so well.

Wayfair furnishes good results

Shares of Wayfair soared 28% after the e-commerce furniture and home goods retailer announced its fourth-quarter financial results. Wayfair said that sales jumped 41% during the period, finishing just below the $2 billion mark and completing a year that saw a 45% rise in direct net revenue. The company still hasn't reached profitability and had negative free cash flow, but CEO Niraj Shah was still pleased the performance, noting a 38% rise in active customers in the direct retail business during 2018. Eventually, Wayfair will have to make money, but shareholders want the company focusing on sales and market share before it worries about the bottom line.

Image source: Getty Images.

Universal Display sees a brighter 2019

Universal Display saw its stock jump 23% following the release of its fourth-quarter financial report. The maker of organic light-emitting diode technology saw mixed results in the quarter, with accounting changes having significant impacts on its revenue and net income figures. Yet Universal Display said that it expects strong sales growth in 2019, reassuring those who'd feared that poor results from key players in the smartphone industry might weigh on performance. With a higher dividend and expectations for renewed growth, Universal Display shareholders couldn't have gotten better news.

iQiyi keeps its growth up

Finally, shares of iQiyi finished higher by almost 22%. The Chinese online entertainment specialist said that revenue climbed 55% during the fourth quarter of 2018 compared to the year-earlier period, with total subscribers rising to 87.4 million, up by more than 36.5 million in just the past 12 months. iQiyi continued to lose money, but adoption rates of its premium entertainment offering hit 98.5%, showing the appetite among Chinese consumers for high-quality content. With the company squarely focused on producing its own original entertainment, iQiyi seems to be following the same trajectory that has helped similar companies overseas achieve great success.

SpartanNash Co (SPTN) Receives $20.60 Average Price Target from Brokerages

Shares of SpartanNash Co (NASDAQ:SPTN) have received a consensus recommendation of “Hold” from the nine brokerages that are currently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $20.60.

A number of brokerages have weighed in on SPTN. ValuEngine upgraded SpartanNash from a “strong sell” rating to a “sell” rating in a research note on Thursday, November 8th. BMO Capital Markets cut SpartanNash from an “outperform” rating to a “market perform” rating and set a $23.00 price objective for the company. in a research note on Thursday, November 8th. BidaskClub upgraded SpartanNash from a “buy” rating to a “strong-buy” rating in a research note on Friday. Zacks Investment Research upgraded SpartanNash from a “sell” rating to a “hold” rating in a research note on Wednesday, January 9th. Finally, Royal Bank of Canada began coverage on SpartanNash in a research note on Thursday, January 10th. They issued an “outperform” rating and a $25.00 price objective for the company.

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In related news, Director Douglas A. Hacker sold 2,499 shares of the company’s stock in a transaction on Tuesday, November 27th. The stock was sold at an average price of $18.75, for a total transaction of $46,856.25. Following the transaction, the director now owns 31,265 shares of the company’s stock, valued at $586,218.75. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider David M. Staples sold 11,960 shares of the company’s stock in a transaction on Wednesday, November 28th. The stock was sold at an average price of $18.39, for a total value of $219,944.40. Following the transaction, the insider now directly owns 182,706 shares in the company, valued at approximately $3,359,963.34. The disclosure for this sale can be found here. 2.40% of the stock is owned by corporate insiders.

A number of hedge funds have recently made changes to their positions in the stock. Thrivent Financial for Lutherans grew its stake in SpartanNash by 0.5% during the 4th quarter. Thrivent Financial for Lutherans now owns 113,666 shares of the company’s stock valued at $1,952,000 after purchasing an additional 564 shares in the last quarter. Municipal Employees Retirement System of Michigan acquired a new stake in SpartanNash during the 4th quarter valued at approximately $179,000. Metropolitan Life Insurance Co. NY grew its stake in SpartanNash by 369.2% during the 4th quarter. Metropolitan Life Insurance Co. NY now owns 12,879 shares of the company’s stock valued at $221,000 after purchasing an additional 10,134 shares in the last quarter. Squarepoint Ops LLC acquired a new stake in SpartanNash during the 4th quarter valued at approximately $262,000. Finally, Bank of America Corp DE grew its stake in SpartanNash by 203.4% during the 4th quarter. Bank of America Corp DE now owns 63,731 shares of the company’s stock valued at $1,094,000 after purchasing an additional 42,722 shares in the last quarter. 85.02% of the stock is currently owned by hedge funds and other institutional investors.

NASDAQ SPTN traded up $0.03 on Wednesday, reaching $21.77. The stock had a trading volume of 151,166 shares, compared to its average volume of 166,378. The company has a current ratio of 1.99, a quick ratio of 0.84 and a debt-to-equity ratio of 0.94. SpartanNash has a 12-month low of $16.08 and a 12-month high of $26.99. The stock has a market cap of $782.46 million, a P/E ratio of 10.37, a P/E/G ratio of 1.50 and a beta of 1.24.

SpartanNash Company Profile

SpartanNash Co engages in the distribution of grocery products to military commissaries in the U.S. It operates through the following segments: Military, Food Distribution, and Retail. The Military segment sells and distributes grocery products primarily to U.S. military commissaries and exchanges. The Food Distribution segment distributes groceries to independent and corporate owned grocery retailers using multi-platform sales approach.

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Analysts Expect BEST Inc (BSTI) Will Post Quarterly Sales of $1.19 Billion

Wall Street brokerages forecast that BEST Inc (NYSE:BSTI) will post $1.19 billion in sales for the current quarter, Zacks Investment Research reports. Three analysts have provided estimates for BEST’s earnings, with the highest sales estimate coming in at $1.26 billion and the lowest estimate coming in at $1.15 billion. The business is expected to announce its next quarterly earnings results on Thursday, April 11th.

On average, analysts expect that BEST will report full-year sales of $4.03 billion for the current financial year, with estimates ranging from $3.99 billion to $4.12 billion. For the next financial year, analysts anticipate that the business will report sales of $5.07 billion, with estimates ranging from $4.78 billion to $5.28 billion. Zacks Investment Research’s sales averages are an average based on a survey of research analysts that that provide coverage for BEST.

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A number of analysts recently issued reports on BSTI shares. KeyCorp reduced their price objective on BEST from $11.00 to $8.00 and set a “buy” rating for the company in a research report on Monday, November 12th. Zacks Investment Research cut BEST from a “hold” rating to a “sell” rating in a research report on Tuesday, November 13th. Two investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. The company presently has an average rating of “Buy” and an average price target of $9.33.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Fox Run Management L.L.C. bought a new position in BEST during the fourth quarter valued at about $44,000. Jane Street Group LLC bought a new position in BEST during the fourth quarter valued at about $77,000. Legal & General Group Plc bought a new position in BEST during the third quarter valued at about $84,000. Element Pointe Advisors LLC bought a new position in BEST during the fourth quarter valued at about $85,000. Finally, GSA Capital Partners LLP bought a new position in BEST during the fourth quarter valued at about $105,000. Institutional investors own 16.57% of the company’s stock.

BSTI traded down $0.08 during trading on Tuesday, reaching $5.89. 525,479 shares of the stock traded hands, compared to its average volume of 804,034. The stock has a market cap of $2.17 billion, a price-to-earnings ratio of -4.64, a PEG ratio of 1.13 and a beta of 0.05. BEST has a fifty-two week low of $3.77 and a fifty-two week high of $13.54.

About BEST

BEST Inc operates as a smart supply chain service provider in the People's Republic of China. Its proprietary technology platform enables its ecosystem participants to operate their businesses through various SaaS-based applications. The company applies its technologies to a range of applications, such as network and route optimization, swap bodies, sorting line automation, smart warehouses, and store management.

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$137.71 Million in Sales Expected for Life Storage Inc (LSI) This Quarter

Analysts predict that Life Storage Inc (NYSE:LSI) will post $137.71 million in sales for the current quarter, Zacks reports. Three analysts have made estimates for Life Storage’s earnings. The highest sales estimate is $140.20 million and the lowest is $134.46 million. Life Storage posted sales of $133.08 million in the same quarter last year, which suggests a positive year-over-year growth rate of 3.5%. The company is scheduled to issue its next earnings results after the market closes on Monday, February 25th.

On average, analysts expect that Life Storage will report full-year sales of $548.62 million for the current year, with estimates ranging from $539.61 million to $552.80 million. For the next financial year, analysts expect that the company will post sales of $580.09 million, with estimates ranging from $560.05 million to $615.00 million. Zacks Investment Research’s sales calculations are an average based on a survey of research firms that cover Life Storage.

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LSI has been the topic of a number of research reports. ValuEngine upgraded Life Storage from a “hold” rating to a “buy” rating in a research note on Wednesday, October 24th. Evercore ISI downgraded Life Storage from an “in-line” rating to an “underperform” rating in a research note on Tuesday, December 18th. They noted that the move was a valuation call. Finally, Zacks Investment Research downgraded Life Storage from a “buy” rating to a “hold” rating in a research note on Tuesday, January 22nd. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and one has issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $93.33.

In related news, COO Edward F. Killeen sold 4,006 shares of Life Storage stock in a transaction on Friday, December 14th. The stock was sold at an average price of $101.10, for a total transaction of $405,006.60. Following the transaction, the chief operating officer now directly owns 24,763 shares in the company, valued at $2,503,539.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Edward F. Killeen sold 1,306 shares of Life Storage stock in a transaction on Wednesday, December 12th. The shares were sold at an average price of $101.99, for a total value of $133,198.94. Following the transaction, the chief operating officer now owns 24,763 shares in the company, valued at $2,525,578.37. The disclosure for this sale can be found here. Insiders have sold 5,962 shares of company stock worth $602,556 over the last quarter. 1.80% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in shares of Life Storage by 5.1% in the third quarter. Vanguard Group Inc. now owns 7,276,424 shares of the real estate investment trust’s stock valued at $692,424,000 after acquiring an additional 354,370 shares in the last quarter. Vanguard Group Inc lifted its position in shares of Life Storage by 5.1% in the third quarter. Vanguard Group Inc now owns 7,276,424 shares of the real estate investment trust’s stock valued at $692,424,000 after acquiring an additional 354,370 shares in the last quarter. Cohen & Steers Inc. lifted its position in shares of Life Storage by 0.4% in the fourth quarter. Cohen & Steers Inc. now owns 6,676,829 shares of the real estate investment trust’s stock valued at $620,878,000 after acquiring an additional 24,316 shares in the last quarter. BlackRock Inc. lifted its position in shares of Life Storage by 2.4% in the fourth quarter. BlackRock Inc. now owns 5,657,678 shares of the real estate investment trust’s stock valued at $526,106,000 after acquiring an additional 132,304 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its position in shares of Life Storage by 21.6% in the third quarter. Massachusetts Financial Services Co. MA now owns 3,425,183 shares of the real estate investment trust’s stock valued at $325,940,000 after acquiring an additional 608,989 shares in the last quarter. Institutional investors own 99.70% of the company’s stock.

Shares of LSI stock traded up $0.18 on Friday, reaching $100.00. The stock had a trading volume of 185,043 shares, compared to its average volume of 287,908. The company has a market cap of $4.66 billion, a P/E ratio of 18.83, a price-to-earnings-growth ratio of 4.41 and a beta of 0.51. Life Storage has a 1 year low of $77.33 and a 1 year high of $102.91. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.28 and a quick ratio of 0.28.

The business also recently announced a quarterly dividend, which was paid on Monday, January 28th. Investors of record on Tuesday, January 15th were given a dividend of $1.00 per share. The ex-dividend date of this dividend was Monday, January 14th. This represents a $4.00 annualized dividend and a yield of 4.00%. Life Storage’s dividend payout ratio (DPR) is presently 75.33%.

Life Storage Company Profile

Life Storage, Inc is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities. Located in Buffalo, New York, the Company operates more than 700 storage facilities in 28 states. The Company serves both residential and commercial storage customers with storage units rented by month.

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Hot Cheap Stocks To Invest In Right Now

tags:UNH,PH,RCII,USG,EMR,

Kratos Defense & Security Solutions: "This is a very interesting one. We recommended it. We got a lot of hate mail, a lot of hate-tweets. A lot of people felt I didn't know what I was talking about. Well, the stock has been just a huge overachiever, but at this price, don't need it. Not going to push it here. We prefer to be in Raytheon. This is the cheapest defense stock. Why? Not dependent on U.S. buying. It's much more of an international play. They buy Patriot missiles as a way to placate our president."

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Alteryx, Inc.: "It's up more than 100 percent. It's almost like I should institute some rules. If it's up more than 100 percent, we kind of let it cool. I'd say this one is one of those that I talked about at the top of the show — 7 to 10 percent pullback, totally realistic. Let it happen and then do a little picking."

Hot Cheap Stocks To Invest In Right Now: UnitedHealth Group Incorporated(UNH)

Advisors' Opinion:

• [By Stephan Byrd]

  JLB & Associates Inc. cut its stake in UnitedHealth Group Inc (NYSE:UNH) by 8.0% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 6,748 shares of the healthcare conglomerate’s stock after selling 587 shares during the period. JLB & Associates Inc.’s holdings in UnitedHealth Group were worth $1,795,000 at the end of the most recent reporting period.

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  Whittier Trust Co. of Nevada Inc. raised its stake in UnitedHealth Group Inc (NYSE:UNH) by 6.1% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 25,033 shares of the healthcare conglomerate’s stock after buying an additional 1,441 shares during the quarter. Whittier Trust Co. of Nevada Inc.’s holdings in UnitedHealth Group were worth $6,141,000 at the end of the most recent quarter.

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  In this segment from MarketFoolery, host Mac Greer and Motley Fool senior analysts Andy Cross and Jason Moser reflect first on this week's earnings report from UnitedHealth Group (NYSE:UNH). The healthcare insurer beat on earnings, but its shares fell anyway. The analysts, though, are much more interested in the company's place in the U.S. healthcare universe, and how it will be able to use its scale to take advantage of demographic and industry trends.

Hot Cheap Stocks To Invest In Right Now: S&P Smallcap 600(PH)

Advisors' Opinion:

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  Commerzbank Aktiengesellschaft FI increased its holdings in shares of Parker-Hannifin Corp (NYSE:PH) by 9.7% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 37,709 shares of the industrial products company’s stock after acquiring an additional 3,348 shares during the quarter. Commerzbank Aktiengesellschaft FI’s holdings in Parker-Hannifin were worth $5,624,000 at the end of the most recent reporting period.

• [By Shane Hupp]

  Barings LLC decreased its holdings in Parker Hannifin (NYSE:PH) by 36.4% in the first quarter, HoldingsChannel reports. The firm owned 26,064 shares of the industrial products company’s stock after selling 14,937 shares during the period. Barings LLC’s holdings in Parker Hannifin were worth $4,458,000 as of its most recent SEC filing.

• [By Joseph Griffin]

  State Board of Administration of Florida Retirement System reduced its position in Parker Hannifin (NYSE:PH) by 3.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 172,950 shares of the industrial products company’s stock after selling 6,667 shares during the period. State Board of Administration of Florida Retirement System owned approximately 0.13% of Parker Hannifin worth $29,580,000 as of its most recent SEC filing.

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• [By Stephan Byrd]

  Parker-Hannifin (NYSE:PH)‘s stock had its “hold” rating reaffirmed by investment analysts at Deutsche Bank in a research report issued to clients and investors on Thursday. They currently have a $169.00 price objective on the industrial products company’s stock. Deutsche Bank’s price target suggests a potential upside of 6.52% from the stock’s current price.

Hot Cheap Stocks To Invest In Right Now: Rent-A-Center Inc.(RCII)

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  Rent-A-Center Inc. (NASDAQ: RCII) shares made an incredible gain on Monday after the company announced that it would be taken private by Vintage Rodeo Parent, an affiliate of Vintage Capital Management.

• [By Ethan Ryder]

  Rent-A-Center (NASDAQ:RCII) gapped down before the market opened on Wednesday . The stock had previously closed at $9.36, but opened at $9.43. Rent-A-Center shares last traded at $9.54, with a volume of 375675 shares changing hands.

• [By Shane Hupp]

  Shares of Rent-A-Center Inc (NASDAQ:RCII) have received a consensus rating of “Hold” from the eight ratings firms that are currently covering the company, Marketbeat.com reports. Two investment analysts have rated the stock with a sell recommendation and six have given a hold recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $8.75.

Hot Cheap Stocks To Invest In Right Now: USG Corporation(USG)

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  As USG Corporation (NYSE:USG) drags its feet on an offer to sell the company for $42 per share, Berkshire intends to use its 30.8% ownership stake to motivate its top brass to make a deal. Berkshire told Bloomberg it intends to vote its shares against USG's board members who are up for re-election at this year's annual meeting, a clear message that Buffett is ready to cash in, even if USG's management and board are not.

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• [By Stephan Byrd]

  ValuEngine upgraded shares of USG (NYSE:USG) from a buy rating to a strong-buy rating in a report published on Tuesday.

  A number of other research analysts have also recently weighed in on the stock. Credit Suisse Group upgraded shares of USG from an underperform rating to a neutral rating and dropped their target price for the company from $35.00 to $24.00 in a research note on Friday, April 27th. Jefferies Group reiterated a hold rating and issued a $40.00 target price on shares of USG in a research note on Monday, April 23rd. SunTrust Banks boosted their target price on shares of USG from $42.00 to $44.00 and gave the company a hold rating in a research note on Tuesday, April 17th. Buckingham Research boosted their target price on shares of USG from $34.00 to $42.00 and gave the company a neutral rating in a research note on Monday, April 16th. Finally, Nomura boosted their target price on shares of USG from $39.00 to $44.00 and gave the company a neutral rating in a research note on Tuesday, March 27th. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating, four have assigned a buy rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of Hold and an average price target of $39.00.

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  ILLEGAL ACTIVITY WARNING: “USG (USG) Issues Quarterly Earnings Results” was originally posted by Ticker Report and is owned by of Ticker Report. If you are viewing this report on another publication, it was stolen and republished in violation of U.S. and international trademark & copyright laws. The correct version of this report can be read at https://www.tickerreport.com/banking-finance/4157507/usg-usg-issues-quarterly-earnings-results.html.

• [By Ethan Ryder]

  USG Co. (NYSE:USG) – Equities research analysts at SunTrust Banks reduced their Q3 2018 earnings per share estimates for shares of USG in a report issued on Monday, July 9th. SunTrust Banks analyst K. Hughes now forecasts that the construction company will post earnings of $0.57 per share for the quarter, down from their previous estimate of $0.61. SunTrust Banks currently has a “Hold” rating and a $44.00 price target on the stock. SunTrust Banks also issued estimates for USG’s FY2018 earnings at $2.05 EPS, Q3 2019 earnings at $0.71 EPS and FY2019 earnings at $2.53 EPS.

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Advisors' Opinion:

• [By Shane Hupp]

  Emerson Electric (NYSE:EMR)‘s stock had its “buy” rating reissued by Cowen in a research note issued on Wednesday. They presently have a $81.00 target price on the industrial products company’s stock. Cowen’s price target points to a potential upside of 3.30% from the company’s current price.

• [By Lee Samaha]

  However, analysts are right to question Rockwell's relative valuation, because peer Emerson Electric (NYSE:EMR) has outgrown Rockwell in the past three quarters. The difference is that Emerson is more of a process automation company and has more exposure to capital spending of energy and heavy industry-related companies, which are growing faster than Rockwell's end markets. The latter is more of a factory automation company and has more general industrial exposure, notably to the automotive industry.

• [By Lee Samaha]

  While long-term secular growth looks assured, it's the cyclical part of its growth that has come under scrutiny in 2018. It hasn't been an easy year for Rockwell shareholders, not least because they watched on as management rejected a $225 bid from Emerson Electric (NYSE:EMR) in the fall, and then watched on as its peer significantly outperformed while Rockwell's stock has declined in 2018.

Buy PSP Projects; target of Rs 511: Dolat Capital

Dolat Capital's research report on PSP Projects

We downgrade our revenue and PAT estimates for FY19E/ FY20E to factor in 9MFY19 and lower order inflow for FY19E. However, we upgrade our EBITDA margin by 39bps for FY19E considering 9MFY19 and maintain for FY20E. We expect 30.2%/ 26.9% revenue/ PAT CAGR over FY19E-21E with EBITDA margins of 13.9%/ 13.3% for FY19E/ FY20E. With its conservative strategy towards leverage and efficient capital allocation, PSP will continue to remain net cash company with negative Net D:E of 0.6x over FY19E-21E. PSP will continue to witness superior return rations (average RoE/ RoCE of 27.2%/ 28.0% over FY19E-21E) led by strong PAT growth, well managed lean balance sheet and efficient working capital management.

Outlook

We rollover to FY21E, accordingly we maintain 'BUY' with a TP of `511 (13x FY21E EPS).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More First Published on Feb 15, 2019 03:27 pm

Brokerages Set AvalonBay Communities Inc (AVB) Target Price at $195.15

AvalonBay Communities Inc (NYSE:AVB) has earned an average recommendation of “Hold” from the seventeen brokerages that are covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and eight have given a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $196.07.

A number of brokerages have recently issued reports on AVB. SunTrust Banks raised their target price on shares of AvalonBay Communities to $208.00 and gave the stock an “average” rating in a research report on Thursday. BTIG Research upgraded shares of AvalonBay Communities from a “neutral” rating to a “buy” rating and set a $216.00 target price on the stock in a research report on Thursday, December 6th. ValuEngine lowered shares of AvalonBay Communities from a “buy” rating to a “hold” rating in a research report on Monday, January 7th. Morgan Stanley raised their target price on shares of AvalonBay Communities from $168.00 to $194.00 and gave the stock an “equal weight” rating in a research report on Monday, December 17th. Finally, BMO Capital Markets upgraded shares of AvalonBay Communities from a “market perform” rating to an “outperform” rating and raised their target price for the stock from $188.00 to $195.00 in a research report on Friday, November 2nd.

Get AvalonBay Communities alerts:

In related news, EVP Edward M. Schulman sold 1,400 shares of the stock in a transaction on Friday, November 16th. The stock was sold at an average price of $183.76, for a total transaction of $257,264.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Keri A. Shea sold 1,880 shares of the stock in a transaction on Monday, November 19th. The stock was sold at an average price of $185.10, for a total value of $347,988.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 37,953 shares of company stock valued at $7,096,213. Corporate insiders own 0.43% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Brown Advisory Securities LLC lifted its holdings in shares of AvalonBay Communities by 1.6% during the fourth quarter. Brown Advisory Securities LLC now owns 3,323 shares of the real estate investment trust’s stock worth $563,000 after purchasing an additional 53 shares during the period. M&T Bank Corp lifted its holdings in shares of AvalonBay Communities by 0.5% during the fourth quarter. M&T Bank Corp now owns 11,665 shares of the real estate investment trust’s stock worth $2,031,000 after purchasing an additional 54 shares during the period. LPL Financial LLC lifted its holdings in shares of AvalonBay Communities by 1.1% during the fourth quarter. LPL Financial LLC now owns 5,057 shares of the real estate investment trust’s stock worth $880,000 after purchasing an additional 56 shares during the period. San Francisco Sentry Investment Group CA lifted its holdings in shares of AvalonBay Communities by 9.9% during the fourth quarter. San Francisco Sentry Investment Group CA now owns 644 shares of the real estate investment trust’s stock worth $112,000 after purchasing an additional 58 shares during the period. Finally, Rehmann Capital Advisory Group lifted its holdings in shares of AvalonBay Communities by 24.4% during the fourth quarter. Rehmann Capital Advisory Group now owns 306 shares of the real estate investment trust’s stock worth $53,000 after purchasing an additional 60 shares during the period. 94.34% of the stock is owned by hedge funds and other institutional investors.

AvalonBay Communities stock traded down $0.64 during mid-day trading on Friday, hitting $195.43. The company had a trading volume of 278,244 shares, compared to its average volume of 586,427. The firm has a market capitalization of $27.10 billion, a P/E ratio of 21.71, a P/E/G ratio of 3.24 and a beta of 0.62. AvalonBay Communities has a 1 year low of $152.65 and a 1 year high of $196.21. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.66.

AvalonBay Communities (NYSE:AVB) last announced its earnings results on Monday, February 4th. The real estate investment trust reported $2.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.32 by ($0.01). The business had revenue of $578.52 million for the quarter, compared to analysts’ expectations of $576.56 million. AvalonBay Communities had a return on equity of 9.33% and a net margin of 42.66%. The business’s revenue was up 4.2% on a year-over-year basis. During the same quarter last year, the business posted $1.72 earnings per share. As a group, research analysts expect that AvalonBay Communities will post 9.31 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Monday, April 15th. Investors of record on Friday, March 29th will be issued a dividend of $1.52 per share. The ex-dividend date is Thursday, March 28th. This is an increase from AvalonBay Communities’s previous quarterly dividend of $1.47. This represents a $6.08 annualized dividend and a dividend yield of 3.11%. AvalonBay Communities’s dividend payout ratio (DPR) is currently 65.33%.

About AvalonBay Communities

As of September 30, 2018, the Company owned or held a direct or indirect ownership interest in 290 apartment communities containing 84,490 apartment homes in 12 states and the District of Columbia, of which 19 communities were under development and 15 communities were under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas primarily in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the Northern and Southern California regions of the United States.

Featured Story: What is cost of equity?

U.S.-China Trade War Boosts Fast-Growing Southeast Asia

&l;p&g;Trade tensions between the U.S. and China are adding rocket fuel to the liftoff of Southeast Asian economies. American tariffs on Chinese-made goods have sped the shift of contract manufacturing to ASEAN countries, such as Vietnam and Thailand. Foreign direct investment in the 10-nation ASEAN region has surged in recent years, and there are signs that investors&a;rsquo; concerns over the trade war will drive even more FDI toward the region. Nikkei just published an article this month titled:&a;nbsp;&l;a href=&q;https://asia.nikkei.com/Economy/Southeast-Asia-bucks-trend-of-sinking-global-foreign-investment&q; target=&q;_blank&q;&g;&a;ldquo;Southeast Asia bucks trend of sinking global foreign investment&a;rdquo;&l;/a&g;.

Our Singapore-based VC firm is tracking these trends closely. They look like a replay of previous events in China itself, where export manufacturing and FDI helped to create both wider prosperity and a hothouse environment for high-growth tech startups. Now the torch is passing to Southeast Asia&a;mdash;fanned higher by the trade war. &l;a href=&q;https://www.economist.com/briefing/2019/01/24/globalisation-has-faltered&q; target=&q;_blank&q;&g;A recent article in The Economist&l;/a&g;, highlights that &a;ldquo; trade tensions are boosting activity in South-East Asia.&a;rdquo;

&l;img class=&q;dam-image bloomberg size-large wp-image-43209509&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/43209509/960x0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; Nguyen Xuan Phuc, Vietnam&s;s prime minister, listens to an interviewer&s;s question during a Bloomberg Television interview in Hanoi on January 18, 2019. A red-hot economy, business-friendly policies and a Communist party led by free-traders: that&s;s the elevator pitch Phuc is delivering to global investors amid the U.S.-China trade war. (Photo: Maika Elan/Bloomberg)

&a;ldquo;We are ready to grab the opportunity,&a;rdquo; Vietnam&a;rsquo;s Prime Minister Nguyen Xuan Phuc told Bloomberg in January. His country has a head start. Vietnam began making athletic shoes and sportswear for Adidas, Nike and other firms in the 1990s. Samsung now makes most of its mobile phones in Vietnam&a;mdash;amazingly, the nation has become the chief source for the world&a;rsquo;s largest phone producer, while the company is Vietnam&a;rsquo;s largest employer. And last fall, the Chinese acoustics manufacturer GoerTek announced that its production of Apple&a;rsquo;s AirPods, the company&s;s wireless headphones, will move to Vietnam, because of the trade war.

Thailand has growing clusters of vehicle assembly plants for Japanese, U.S., and Chinese auto companies, while also making components for tier 1 suppliers. Panasonic is joining the latter by shifting production of auto stereos from China. Meanwhile, the Thai electronics maker SVI has been sifting through requests from firms which, until now, had their work done in China. &a;ldquo;The trade war is good for us,&a;rdquo; SVI&a;rsquo;s chief executive,&a;nbsp;&l;span&g;Pongsak Lothongkam,&l;/span&g; said to Business Insider. &q;We have been approached by so many companies that we have to prioritize.&q;

Not all of the movement from China to Southeast Asia is in high-tech or high-value goods. Cambodia snared bicycle production for U.S.-based Kent International, whose budget-priced bikes are sold in big-box retail outlets and online. Other light manufacturing for export, such as in apparel and furniture, is picking up across ASEAN countries while Chinese volume appears to be tailing off. It&a;rsquo;s natural for these forms of production to lead a geographic shift because they can be set up in new locations faster and require less skilled labor.

But the shift is on, as reflected by multiple sets of figures. In 2012, for example, Japanese firms had more direct investment and more office and support personnel on the ground in China than in ASEAN, but the picture has flipped rapidly. Numbers from 2017 showed Japan investing $22 billion in ASEAN versus just $9.6 billion in China, while Japan&a;rsquo;s Foreign Ministry reported that roughly 83,000 expats are working in ASEAN, surpassing the 70,000 in China.

Further, it seems the U.S.-China trade war&a;mdash;mixed with uncertainty over the countries&a;rsquo; future trade relations&a;mdash;has affected key players&a;rsquo; outlooks as well as results. Late last summer, a survey of U.S. firms manufacturing in China found that 18.5% had either moved production to Southeast Asia or were considering it. Early this year, when attendees at the Asian Financial Forum in Hong Kong were surveyed on where they felt good investment returns in 2019 were most likely, 39% said Southeast Asia, 35% indicated China and 16% opted for the U.S.

Labor cost has been a fundamental driver of manufacturing to Southeast Asia. ASEAN wages can run as low as one-third to one-half those in China. This isn&a;rsquo;t the only factor, however. Production in all industries is incorporating more new technology and smart automation, and if you need to upgrade, why not start fresh in a new location instead of trying to retrofit? Here again, Southeast Asia beckons.

Our VC firm launched in Singapore seven years ago, when my partners and I saw opportunities for startup activity across the region. Now the manufacturing shift promises to take that activity to new levels. It means more Southeast Asians working with and learning about advanced technology, more need for tech solutions from industry, and more prosperous societies creating in-country consumer demand.

Which countries are poised for the greatest takeoff? Many observers favor Vietnam, which already exports vigorously ($94 billion in electrical and electronics goods alone in 2017), offers a large workforce (population over 95 million, skewed young), and has worked to build good trade relations globally. But all ASEAN nations stand to gain from increased export manufacturing. Japan&a;rsquo;s Nomura Group&a;mdash;using multi-factor measures it calls the NISI and NPRI (Nomura Import Substitution Index and Product Relocation Index, respectively)&a;mdash;sees significant upside for Malaysia, Thailand, The Philippines, Indonesia, Singapore, and Cambodia along with Vietnam.

&l;img class=&q;size-full wp-image-264&q; src=&q;http://blogs-images.forbes.com/vinnielauria/files/2019/02/Graph.jpg?width=960&q; alt=&q;&q; data-height=&q;465&q; data-width=&q;900&q;&g; Countries affected by the U.S.-China trade war (Source: Nomura Group)

Certainly, challenges still loom. Tech skills will need to grow in many ASEAN locales, including places like Vietnam and Thailand, where low unemployment means the best workers at present are already taken. Infrastructure build-out across the region will be needed, too. The World Economic Forum, in a 2018 white paper co-authored with A.T. Kearney, urged that ASEAN nations collaborate on issues like these to achieve full &a;ldquo;readiness&a;rdquo; for production growth.

And ultimately, a classic Catch-22 looms. As Southeast Asian countries become wealthier, wages will rise and their global cost advantage will fade. Tomorrow&a;rsquo;s ASEAN firms will have to compete on innovation, quality, and ability to serve their home markets. Chinese firms have benefited from China&a;rsquo;s immense domestic market, and now rely on it increasingly.

Keep in mind, though, that the ASEAN region also has a big home card to play. Its combined population of 650 million is larger than either the E.U. or the&a;nbsp;NAFTA trio of U.S., Mexico and Canada. With the U.S.-China trade war now having its effects, I&a;rsquo;m even more bullish on &l;a href=&q;https://www.slideshare.net/GoldenGateVentures/the-us-china-tradewar-a-boon-for-southeast-asia-131264136&q; target=&q;_blank&q;&g;Southeast Asia&a;rsquo;s economic potential&l;/a&g; than before.&l;/p&g;

Electronic Arts Upgraded, Take-Two Interactive Downgraded

Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...

Man, oh, man! Has it ever been an exciting month for video game investors!

Last week, two of the biggest names in the industry, Electronic Arts (NASDAQ:EA) and Take-Two Interactive (NASDAQ:TTWO), both reported their financial results for the final quarter of 2018. EA reported an 11% gain in sales year over year -- but missed earnings expectations big time. Boosted by the success of Red Dead Redemption 2 (RDR2) Take-Two scored an even bigger sales gain of 160%...and also missed earnings. Both companies announced guidance well below expectations, and suffered sell-offs as a result.

And yet, one week after the news, Wall Street is treating these two companies very differently indeed.

Could these guys really be responsible for torpedoing earnings at Electronic Arts and Take-Two? at Image source: Epic Games.

Upgrading EA

Let's begin with Electronic Arts -- because it's always nice to begin on a bright note. Last week, it was revealed that EA's new Apex Legends battle-royale-style video game rushed off to a strong start, racking up 10 million new players in its first 72 hours on the market.

In response to that news, megabanker Merrill Lynch announced yesterday that it was upgrading Electronic Arts stock to buy and assigning a $110 price target. (Piper Jaffray, already optimistic about the shares, upped its price target to $99.)

And of course, all this happened before EA told investors after close of trading that its Apex Legends player count had more than doubled. In its first full week on the market, Apex Legends has already racked up 25 million players, with as many as 2 million gamers online and playing together at any given time.

This news has already spawned one additional price-target hike, with R.W. Baird raising its estimated value on already buy-rated EA to $106. As Baird noted, Apex Legends hit 25 million users nearly six times faster than the "phenom" that is Fortnite.

Downgrading Take-Two

Now for the bad news. Despite reporting staggeringly great revenue growth last quarter, Take-Two Interactive's Red Dead Redemption 2 is currently only at 23 million players -- and already, at least one analyst is getting nervous.

This morning, BMO Capital announced it is downgrading Take-Two stock from market perform to underperform (i.e., sell). Even worse, the analyst cites RDR2 as its reason for downgrading the stock.

RDR2 has benefited from a two-year-long "hype machine" to support its initial wave of sales, points out BMO in a note covered on TheFly.com. That promotional effort obviously paid off in spades given the company's 160% year-over-year sales gain. But after its strong initial push, BMO says the buzz around RDR2 has "dissipated markedly."

If Take-Two can't keep players engaged with RDR2 (and judging from EA's latest announcement, it appears that Apex Legends could be a big distraction), then the company could have real problems with in-game sales, which would prevent it from fully monetizing RDR2 over time.

BMO is taking a better-safe-than-sorry approach and exiting Take-Two stock before things have a chance to get any worse.

Lights, cameras, Activision!

Of course, all of the above leads up to today's main event: Activision Blizzard's (NASDAQ:ATVI) Q4 earnings report, which will come out after the close of trading. Even with its stock down more than 50% over the last four months, Activision remains the heavyweight of the gaming world, with a $31.5 billion market capitalization that eclipses both EA ($30 billion) and Take-Two ($9.3 billion).

But initial indications are that Activision's earnings news won't be good.

Sure, analysts are still predicting strong numbers from the company -- $1.28 per share in earnings according to Yahoo! Finance, up 36% from last year, and 15% revenue growth to more than $3 billion. However, CNBC is reporting that Activision is expected to announce job cuts as part of its earnings release, and analysts at Oppenheimer are warning investors to "stay away from this stock."

The upshot for investors

Is that the right call?

Perhaps it is, but I have to say that the more Wall Street gets pessimistic about this stock (and about EA and Take-Two as well, for that matter), the more I think investors might want to take a closer look. Although valued at nearly 55 times earnings currently, Activision stock sells for only 17.5 times trailing free cash flow (and even less if you give the stock credit for its net cash position). That's not too much of a premium to pay for the 15% projected long-term growth rate for Activision.

Investors willing to weather some "fortnites" of turbulence and own this stock for the long haul might want to take advantage of any post-earnings sell-off to pick up a few shares of Activision.

Stock picks of the day: Break below 10,800 on Nifty could trigger further fall to 10,650

Jayant Manglik

The market ended marginally higher amid volatility for the week ended February 8 extending its prevailing consolidation phase. The sentiment was upbeat in the first three sessions taking cues from recently announced Interim Budget and optimism ahead of the monetary policy review meeting.

However, participation was limited largely to the index majors while decline continued on the broader front. Profit taking in final sessions trimmed gains of the benchmark index, too, and Nifty finally closed at 10,943.60.

related news What changed for the market while you were sleeping? Top 10 things to know A morning walk down Dalal Street | Profit booking can continue if Nifty fails to hold 10,850 Trade Setup for Tuesday: Top 15 things to know before Opening Bell

The Nifty couldn't sustain above 10,950 last week despite a good start. The momentum was weighed down by continuous fall on the broader front which kept the uneasiness intact.

We maintain our stance that convergence between the broader market and the benchmark index is essential for any sustainable move.

Nifty has crucial support at 10,800 and its breakdown could trigger further fall to 10,650. In case of any up move, 11,100 will act as a hurdle. Considering the present scenario, we advise keeping limited exposure and preferring hedged trades.

Here is a list of top three stocks which could give 4-6% return in the next 1 month:

HDFC Bank: Buy| Target: Rs 2,230| Stop-Loss: Rs 2,080| Upside 4.4%

Among the private banking space, HDFC Bank holds prominence due to its consistent performance. It is currently trading strongly above the support zone of major moving averages on multiple time frames, clearly indicating its strength.

Also, the stock is now on the verge of a fresh breakout from its two-month-long consolidation phase and is likely to make a new record high soon. We advise traders not to miss this chance and initiate fresh long positions in the mentioned zone of Rs 2125-2135.

UPL: Buy| Target: Rs 850| Stop Loss: Rs 775| Return 6.2%

UPL after consolidating in a narrow range recorded a breakout recently and is now gradually inching higher towards its record high. Though it looks firm, we may see a marginal dip before the further up move.

We advise participants to utilize that phase to create a fresh longs position in the given range Rs 790-800. It closed at Rs 805.85 on February 11, 2019.

ICICI Bank: Sell Feb Futures| Target: Rs 334| Stop Loss: Rs 364 | Downside 5.4%

After making a record high at Rs 383.55 last month, ICICI Bank is currently witnessing profit booking and likely to see fresh fall below Rs 348 levels. The resistance of long term trend line combined with the positioning of oscillators is adding to the negativity. We advise creating fresh shorts within Rs 353-356. It closed at Rs 352 on February 11, 2019.

(The author is President - Retail Distribution, Religare Broking)

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. First Published on Feb 12, 2019 08:24 am

Top 10 Bank Stocks To Own Right Now

tags:WFC,AP,HSBA,FCF,CM,

Prosperity Bancshares Inc (NYSE:PB) files its latest 10-K with SEC for the fiscal year ended on December 31, 2017. Prosperity Bancshares, Inc. operates as the financial holding company for Prosperity Bank. It provides range of financial products and services to small and medium-sized businesses and consumers. Prosperity Bancshares Inc has a market cap of $5.29 billion; its shares were traded at around $76.07 with a P/E ratio of 19.34 and P/S ratio of 7.24. The dividend yield of Prosperity Bancshares Inc stocks is 1.81%. Prosperity Bancshares Inc had annual average EBITDA growth of 8.80% over the past ten years. GuruFocus rated Prosperity Bancshares Inc the business predictability rank of 5-star.

For the last quarter Prosperity Bancshares Inc reported a revenue of $185.3 million, compared with the revenue of $183.3 million during the same period a year ago. For the latest fiscal year the company reported a revenue of $733.5 million, a decrease of 2.3% from the previous year. For the last five years Prosperity Bancshares Inc had an average revenue growth rate of 9% a year.

Top 10 Bank Stocks To Own Right Now: Wells Fargo & Company(WFC)

Advisors' Opinion:

• [By Jordan Wathen]

  Wells Fargo (NYSE:WFC) is often described as America's largest community bank, but I don't think most people really understand the accuracy of that descriptor. If you examine it on a branch-by-branch basis, it really is a community bank, size and all.

• [By Shah Gilani]

  The prospect of big bank deregulation in light of the outrageous ongoing criminal activity – because that's what it is – at Wells Fargo & Co. (NYSE: WFC) makes me cringe.

• [By ]

  Here's a lesson Wells Fargo & Co. (WFC) CEO Tim Sloan appears to have learned: Be nice to your customers.

  The San-Francisco bank has paid about $2 billion in fines and extra legal costs to resolve allegations that it used overly aggressive sales practices over the past decade, including opening millions of accounts without customers' knowledge and charging auto borrowers for insurance they didn't need.

• [By Matthew Frankel]

  As far as positive surprises go, Wells Fargo (NYSE:WFC) was probably the biggest positive surprise. I probably don't have to tell most listeners, Wells Fargo hasn't had the best couple of years, when it comes to their fake accounts scandal, the fallout from that, the other mini scandals along the way, and just recently, their punishment by the same Federal Reserve that says they're not allowed to grow until they improve. They actually got the approval to buy back more than twice the amount of stock that they did last year. One, that says a lot about how well-capitalized they are. Two, it also says a lot that their management's willing to do that, that they think that their stock is at such a compelling bargain right now that they're willing to spend over $25 billion on buybacks alone.

• [By ]

  San Francisco-based Wells Fargo & Co. (WFC) , struggling to recover from a series of regulatory penalties over allegedly aggressive sales practices, posted a 5.5% profit increase on a preliminary basis, noting that legal costs might have to be revised higher pending discussions with regulators over as much as $1 billion of new penalties related to auto insurance and mortgage-related violations.

• [By Paul Ausick]

  Buffett also stuck by his long-term commitment to Wells Fargo & Co. (NYSE: WFC) which now amounts to about 10% of the bank’s outstanding stock. He almost seemed to excuse the fake account scandal with a comment that what happened at Wells Fargo could have happened to any bank. The scandal was the result of heavy corporate pressure on branch managers to increase sales. As a result, said Buffett, “Wells Fargo is a company that proved the efficacy of incentives and it’s just that they had the wrong incentives.”

Top 10 Bank Stocks To Own Right Now: Ampco-Pittsburgh Corporation(AP)

Advisors' Opinion:

• [By ]

  Jerusalem (AP) -- Israeli authorities have begun distributing deportation notices to thousands of African migrants.

  In letters delivered Sunday, Israel says the migrants have 60 days to accept the offer to leave the country for an unnamed African destination in exchange for $3,500 and a plane ticket. Those who don't by Apr. 1 will be incarcerated indefinitely.

• [By ]

  This undated photo provided by Edmunds, shows the 2018 Land Rover Discovery, which allows you to remotely fold the rear seats flat via a linked smartphone app. (Courtesy of Edmunds.com Inc. via AP) (Photo: AP)

• [By ]

  Cayce, S.C. (AP) -- A crash between an Amtrak passenger train and a CSX freight train in South Carolina has left at least two people dead and more than 50 injured

Top 10 Bank Stocks To Own Right Now: HSBC Holdings PLC (HSBA)

Advisors' Opinion:

• [By Stephan Byrd]

  Morgan Stanley set a GBX 855 ($10.91) price target on HSBC (LON:HSBA) in a research note issued to investors on Tuesday. The brokerage currently has a buy rating on the financial services provider’s stock.

• [By Max Byerly]

  HSBC Holdings plc (LON:HSBA) has received an average recommendation of “Hold” from the sixteen analysts that are covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is GBX 768.33 ($9.80).

• [By Max Byerly]

  Credit Suisse Group set a GBX 720 ($9.32) price target on HSBC (LON:HSBA) in a research report sent to investors on Tuesday morning. The firm currently has a neutral rating on the financial services provider’s stock.

Top 10 Bank Stocks To Own Right Now: First Commonwealth Financial Corporation(FCF)

Advisors' Opinion:

• [By Joseph Griffin]

  Get a free copy of the Zacks research report on First Commonwealth Financial (FCF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Logan Wallace]

  Get a free copy of the Zacks research report on First Commonwealth Financial (FCF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Ethan Ryder]

  First Commonwealth Financial (NYSE:FCF) was upgraded by investment analysts at ValuEngine from a “sell” rating to a “hold” rating in a report released on Monday.

• [By Joseph Griffin]

  Get a free copy of the Zacks research report on First Commonwealth Financial (FCF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Bank Stocks To Own Right Now: Canadian Imperial Bank of Commerce(CM)

Advisors' Opinion:

• [By Motley Fool Staff]

  Canadian Imperial Bank of Commerce (NYSE:CM)Q2 2018 Earnings Conference CallMay 23, 2018, 8:00 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

• [By Stephan Byrd]

  Canadian Imperial Bank of Commerce (NYSE:CM) (TSE:CM) declared a quarterly dividend on Wednesday, May 23rd, Zacks reports. Stockholders of record on Thursday, June 28th will be paid a dividend of 1.036 per share by the bank on Friday, July 27th. This represents a $4.14 dividend on an annualized basis and a dividend yield of 4.63%. The ex-dividend date is Wednesday, June 27th.

• [By Joseph Griffin]

  Shares of Canadian Imperial Bank of Commerce (TSE:CM) (NYSE:CM) have earned an average recommendation of “Hold” from the twelve research firms that are presently covering the company, MarketBeat reports. Five equities research analysts have rated the stock with a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is C$130.33.

Selloff on D-Street pushed Nifty below 11,000; 16 stocks fell 10-60% in a week

Indian market witnessed a selloff in the last two trading session of the week which pushed benchmark indices below crucial support levels largely on weak global cues.

The S&P BSE Sensex closed the week below 37,000 while Nifty50 failed to hold on to 11,000 for the week ended February 8.

On weekly basis, Sensex rose 0.2 percent while the Nifty50 recorded gains of about 0.46 percent but as many as 16 stocks in the BSE500 index plunged 10-60 percent in the same period.

Stocks which saw a double-digit cut include names like Reliance Power, Reliance Infrastructure, Reliance Communications, Reliance Capital, Suzlon Energy, Jaiprakash Associates, Adani Power, SREI Infra, IDBI Bank, Centrum Capital, Indiabulls Ventures, Indiabulls Integrated Services, Tata Chemicals, Indiabulls Real Estate, and Mahindra Logistics.

related news The Moneycontrol Show │ Budget 2019, RBI policy, market strategies Media kits: How companies overshoot their budgets to give 'kits' at events

The big carnage was seen in the small & mid-cap space which fell over 2 percent respectively for the week ended February 8. More than 300 stocks on the BSE hit a fresh 52-week low while on the NSE the number was slightly over 200.

As many as 21 stocks on the BSE hit a fresh all-time low in the week gone by which include names like Reliance Power, Reliance Communication, Suzlon, Inox, ICICI Securities, Cochin Shipyard, Coal India, Shankara Building etc. among others.

ADAG stocks saw their worst decline as most of the stocks hit their lifetime low during the week gone by. Anil Ambani-led Reliance Group on February 8 accused L&T and Edelweiss entities of "illegal" and "motivated" actions in invoking the pledged shares and selling them in the open market causing a steep fall in its share value.

Both L&T Finance and Edelweiss Group refuted the allegations made by the Reliance Group in separate media statements.

"Post Rcom bankruptcy, ADAG group may face credibility crisis as no lender may come forward to lend money to this group. Hence, stocks may under pressure for some more time and investors should avoid them in their own interest atleast for a couple of months till dust gets settled," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.

The market direction in the coming week will be dominated by global cues as well as macro data, suggest experts.

"Volatility likely to continue amid growing concerns over the trade fight between the US and China, also Markets to closely track domestic macroeconomic data like IIP, CPI & WPI scheduled in the coming week," Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas said.

"We continue to maintain a positive view on the consumption sector and expect the coming election to act as a positive catalyst for volume growth. Any major decline in the market should be used to buy into quality names such as (HUL, Reliance Industries and Titan) which remain some of our preferred picks," he said.

Technical View:

Following the Doji formation on February 7, the Nifty witnessed a sharp reversal on February 8. In terms of the candlestick patterns, the price action over the last three sessions has resulted in the Evening Star formation.

The pattern got formed post the completion of an Ending Diagonal pattern. This increases the bearish significance of the candlestick pattern, suggest experts.

"The Fibonacci retracements reveal that the benchmark index has reversed from the 61.8% retracement of the September – October decline. Hence the Nifty seems to have topped out at the recent high of 11,118," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.

On the way down, the Nifty has broken the key support zone of 10,980-11,000 on a closing basis. Thus the traders can add to the position on the short side. From short term perspective, 10,583-10,534 shall now be the key target area to watch out for with potential to head significantly lower, he added. First Published on Feb 9, 2019 09:48 am

Top Stocks To Watch Right Now

tags:ACM,ICPT,RGSE,OPEN, &l;p&g;&l;img class=&q;size-full wp-image-2299&q; src=&q;http://blogs-images.forbes.com/zackfriedman/files/2018/06/Dottie-Herman.jpg?width=960&q; alt=&q;&q; data-height=&q;669&q; data-width=&q;810&q;&g; Dottie Herman, CEO of Douglas Elliman

How did Dottie Herman become the &l;a href=&q;https://www.forbes.com/profile/dorothy-herman/&q;&g;richest&l;/a&g; self-made woman in real estate?

As CEO of Douglas Elliman, Herman sits at the helm of one &l;span&g;of the nation&a;rsquo;s oldest and largest real estate brokerage firms with approximately $27.4 billion in annual sales volume and 7,000 real estate agents.&l;/span&g;

From her roots as a real estate broker on Long Island in New York to buying Douglas Elliman with her partner, Howard Lorber, Herman is a self-made entrepreneur who is the go-to name for all things real estate.

I interviewed Herman on a variety of topics, including the real estate business, her best advice to entrepreneurs, the one mistake never to make in real estate, what she learned from personal tragedy, and her morning and nighttime routines.

Top Stocks To Watch Right Now: AECOM(ACM)

Advisors' Opinion:

• [By Stephan Byrd]

  Aecom (NYSE: ACM) and Engility (NYSE:EGL) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

• [By Joseph Griffin]

  Actinium (CURRENCY:ACM) traded flat against the U.S. dollar during the 24-hour period ending at 22:00 PM Eastern on October 4th. One Actinium coin can now be purchased for about $0.0237 or 0.00000361 BTC on major cryptocurrency exchanges including TradeOgre and Crex24. In the last week, Actinium has traded flat against the U.S. dollar. Actinium has a market capitalization of $0.00 and approximately $585.00 worth of Actinium was traded on exchanges in the last day.

• [By Logan Wallace]

  Aecom (NYSE:ACM) – Research analysts at KeyCorp issued their FY2018 earnings per share estimates for shares of Aecom in a report released on Wednesday, August 8th. KeyCorp analyst T. Afzal expects that the construction company will earn $2.72 per share for the year. KeyCorp also issued estimates for Aecom’s Q4 2018 earnings at $0.87 EPS, FY2019 earnings at $3.10 EPS and FY2020 earnings at $3.53 EPS.

• [By Ethan Ryder]

  Here are some of the news stories that may have effected Accern Sentiment’s rankings:

  Get Aecom alerts: Critical Comparison: Aecom (ACM) versus Tetra Tech (TTEK) (americanbankingnews.com) Aecom (ACM) Given Consensus Recommendation of “Hold” by Brokerages (americanbankingnews.com) Long or Short: AECOM (NYSE: ACM) (tradingnewsnow.com) Former AECOM, CH2M Exec Colin Jones Named Jacobs VP for North American Nuclear Business (govconwire.com) Eaton contracting with AECOM for maintenance services (gmtoday.com)

  Shares of ACM traded down $0.33 during trading hours on Wednesday, hitting $32.40. The stock had a trading volume of 376,163 shares, compared to its average volume of 855,267. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.23 and a quick ratio of 1.23. The company has a market cap of $5.25 billion, a PE ratio of 11.02, a P/E/G ratio of 2.17 and a beta of 1.68. Aecom has a 1-year low of $30.15 and a 1-year high of $39.90.

• [By Lisa Levin] Companies Reporting Before The Bell Dean Foods Company (NYSE: DF) is projected to report quarterly earnings at $0.11 per share on revenue of $1.85 billion. Discovery, Inc. (NASDAQ: DISCA) is expected to report quarterly earnings at $0.44 per share on revenue of $1.99 billion. Jacobs Engineering Group Inc. (NYSE: JEC) is estimated to report quarterly earnings at $0.89 per share on revenue of $3.63 billion. Henry Schein, Inc. (NASDAQ: HSIC) is expected to report quarterly earnings at $0.92 per share on revenue of $3.17 billion. Gartner, Inc. (NYSE: IT) is projected to report quarterly earnings at $0.57 per share on revenue of $926.18 million. The AES Corporation (NYSE: AES) is estimated to report quarterly earnings at $0.24 per share on revenue of $2.98 billion. Expeditors International of Washington, Inc. (NASDAQ: EXPD) is projected to report quarterly earnings at $0.64 per share on revenue of $1.71 billion. US Foods Holding Corp. (NYSE: USFD) is expected to report quarterly earnings at $0.32 per share on revenue of $5.98 billion. DISH Network Corporation (NASDAQ: DISH) is expected to report quarterly earnings at $0.7 per share on revenue of $3.50 billion. Zebra Technologies Corporation (NASDAQ: ZBRA) is estimated to report quarterly earnings at $2.06 per share on revenue of $936.98 million. Camping World Holdings, Inc. (NYSE: CWH) is expected to report quarterly earnings at $0.42 per share on revenue of $1.06 billion. Perrigo Company plc (NYSE: PRGO) is projected to report quarterly earnings at $1.14 per share on revenue of $1.21 billion. Petróleo Brasileiro S.A. - Petrobras (NYSE: PBR) is estimated to report quarterly earnings at $0.28 per share on revenue of $23.80 billion. JD.com, Inc. (NYSE: JD) is projected to report quarterly earnings at $0.18 per share on revenue of $15.65 billion. Valeant Pharmaceuticals International, Inc. (NYSE: VRX) is projected to report quarterly earnings at $0.6 per share o
• [By Sarah Priestley]

  The last stock I'll mention is AECOM (NYSE:ACM). They're well placed to handle large government contracts. Specifically if you're bullish on these state-funded projects like in Nevada, they are well placed to take advantage of that, design, build, finance, and even operate infrastructure assets for the government and for businesses. They recently merged with a competitor, URS, to increase their exposure to energy and to transportation. Anyone who regularly listens to the show knows that we like a little bit of energy exposure here because of the growing price of oil, and liquid natural gas, and those kinds of things. 

Top Stocks To Watch Right Now: Intercept Pharmaceuticals, Inc.(ICPT)

Advisors' Opinion:

• [By George Budwell]

  If that line holds true, this emerging space should be able to support multiple new drugs, meaning that the current leaders in the field -- Intercept Pharmceuticals (NASDAQ:ICPT) and Genfit -- probably won't be able to monopolize the market before other competitors like Viking get their drugs past the FDA. In fact, this market is so large it could feasibly support several blockbuster level products. 

• [By Max Byerly]

  JMP Securities upgraded shares of Intercept Pharmaceuticals (NASDAQ:ICPT) from a market perform rating to an outperform rating in a research report report published on Wednesday morning, Marketbeat.com reports. JMP Securities currently has $175.00 price target on the biopharmaceutical company’s stock, up from their prior price target of $75.00.

• [By Sean Williams, Chuck Saletta, and Brian Feroldi]

  With this in mind, we picked the brains of three Motley Fool investors to gauge what biotech stock they believe investors should consider buying right now. Topping the list were mid-caps Intercept Pharmaceuticals (NASDAQ:ICPT) and Xencor (NASDAQ:XNCR), as well as biotech blue-chip Celgene (NASDAQ:CELG). 

• [By George Budwell]

  Shares of Intercept Pharmaceuticals (NASDAQ:ICPT) rose by as much as 17% on above-average volume Monday. The spark?

  The drugmaker's shares were responding positively to back-to-back upgrades from analysts at Goldman Sachs and Wedbush on Monday. For instance, Goldman's Salveen Richter upgraded Intercept's shares from a sell to a buy rating, and hiked the firm's 12-month price target from $46 to $157 a share. Wedbush, on the other hand, doled out a $217 price target on the stock Monday morning. Wedbush's noteworthy price target implies a monstrous 126% upside potential from where Intercept's shares closed last week.  

Top Stocks To Watch Right Now: Real Goods Solar, Inc.(RGSE)

Advisors' Opinion:

• [By Stephan Byrd]

  Shares of Real Goods Solar, Inc. (NASDAQ:RGSE) traded down 11.6% on Monday . The stock traded as low as $0.37 and last traded at $0.38. 3,349,076 shares changed hands during mid-day trading, an increase of 111% from the average session volume of 1,589,596 shares. The stock had previously closed at $0.43.

• [By Paul Ausick]

  Real Goods Solar Inc. (NASDAQ: RGSE) traded down 7.5% Monday to set a new 52-week low of $0.37 after closing Friday at $0.40. The stock’s 52-week high is $3.25. Volume was more than 13 times the daily average of about 678,000 shares. The company had no specific news, but a report on solar energy prospects for 2018 may have weighed on the stock.

Top Stocks To Watch Right Now: OpenTable Inc.(OPEN)

Advisors' Opinion:

• [By Max Byerly]

  Open Platform (CURRENCY:OPEN) traded down 8.2% against the dollar during the 24 hour period ending at 9:00 AM ET on June 25th. Open Platform has a total market capitalization of $0.00 and $1.10 million worth of Open Platform was traded on exchanges in the last 24 hours. Over the last week, Open Platform has traded 33.4% lower against the dollar. One Open Platform token can currently be purchased for approximately $0.0923 or 0.00001514 BTC on popular exchanges.

• [By Ethan Ryder]

  Open Platform (CURRENCY:OPEN) traded 2.5% higher against the US dollar during the one day period ending at 20:00 PM Eastern on June 30th. Open Platform has a total market cap of $0.00 and $189,463.00 worth of Open Platform was traded on exchanges in the last day. One Open Platform token can now be bought for approximately $0.0789 or 0.00001235 BTC on popular cryptocurrency exchanges. During the last seven days, Open Platform has traded down 28.6% against the US dollar.

Petronet LNG Q3: Subdued performance; EBITDA contracts

 

Petronet LNG (PLNG) reported a subdued performance with a noticeable year-on-year (YoY) contraction in earnings before interest, tax, depreciation and amortisation (EBITDA) margins and net margins despite a strong YoY uptick in revenue and a slight surge in profits.

Key positives

- The revenue grew 30 percent YoY but the topline contracted 6 percent sequentially. The growth was despite a contraction in volumes and was driven by 11 percent YoY (+2 percent sequentially) rise in the regas charge at Dahej with a sharp uptick in spot regas charge.

related news Interim Budget made aggressive assumptions about revenue: Manishi Raychaudhuri, BNP Paribas Govt has more fiscal space than markets gives it credit for, says Neelkanth Mishra of Credit Suisse SBI's exposure to DHFL is Rs 11,000 crore: Chairman Rajnish Kumar

-Lower tax charge helped in proving support to the net profits.

-The company was able to bring in a substantial 41 percent cut in the finance costs which is a healthy sign. Other expenses were down almost 7 percent YoY.

Key Negatives

-EBITDA remained largely flat on a YoY basis for yet another quarter. However, there was a noticeable 4 percent dip quarter-on-quarter (QoQ).

-While EBITDA margins slightly improved sequentially, there was a 252 basis point YoY contraction on the back of higher raw material costs and a surge in employee expenses. Though the employee expenses were up YoY, there was some cooling off during the quarter after a very sharp surge in the Q2FY19.

-Utilisation at Dahej moderated to 103 percent and Kochi to 8 percent. Volume at Dahej declined 7 percent sequentially due to lower offtake from power and petchem industries in November 2018.

Other observations

 -The expansion of the Dahej terminal from the current 15 mtpa (million tonnes per annum) to 17.5 mtpa is expected to get commissioned by Jun 2019 post which there is an expectation of a volume ramp-up in H2FY20 subject to demand.

-New tanks and third jetty commissioned at the Dahej terminal are expected to enhance the capacity further to 19.5 mmtpa in the next 3-4 years.

-The Bangladesh expansion is now facing challenges. While the Bangladesh government wants PLNG to bid for the project, the company wasn't a G2G deal with proper safety nets to ensure smooth demand. The terminal location has been changed due to naval requirements, which would mean a new feasibility study for the new location and will entail a delay in the project.

-PLNG is also considering new LNG terminals on the east coast of India along with exploring expansion opportunities in Qatar and US.

-The commissioning of GAIL's Kochi-Mangalore pipeline which is the key to the Kochi terminals growth is expected to get delayed from the scheduled February 2019 to June 2019 due to monsoons in Karnataka and Kerala towards the end of 2018.

-In order to boost up the volume at the Kochi terminal, the management indicated there might be an earlier-than-expected cut in the tariffs.

-The company is participating in the 10th round of PNGRB CGD (city gas distribution) bidding focusing on South Indian geographical areas (GAs)

Outlook

The stock corrected after the subdued performance and is trading around 19 percent below its 52-week high at a 17x 2020e (estimated) price to earning (PE).

While the company's performance has been impacted due to varied reasons we see several catalysts like brownfield expansion in Dahej, commissioning of the Kochi pipeline and progress on the uniform pipeline tariffs which we believe would help to improve the performance in the coming terms, though the international expansion plans seem to be slowing down a bit.

Follow @Ruchiagrawal

For more research articles, visit our Moneycontrol Research Page.

 

 

 

 

 

  First Published on Feb 4, 2019 03:16 pm

PayPal CFO addresses 3 earnings pain points: eBay, currency, some slower growth

Wall Street's relative disappointment with PayPal's fourth-quarter earnings report — with the exception of the almost-profitable Venmo — may have stemmed from the company's forward guidance, CFO John Rainey told CNBC on Thursday.

In an exclusive "Mad Money" interview after PayPal's report, Rainey emphasized that management was "really pleased" with the fourth-quarter results, highlighting the company's 26-percent earnings per share growth and its record-breaking net new customer additions.

But there were three potential pain points in PayPal's first-quarter guidance that were worth addressing, Rainey told CNBC's Jim Cramer after the financial technology company's shares dropped 3.96 percent.

"There's probably three things that stand out that are impacting us, and, in order, eBay is the first," the CFO said of PayPal's former parent company. "We still have 10 percent of the volume on our platform, which is eBay's business. And, as eBay has discussed, they're expecting slower growth, so that has an impact on our business."

Issue No. 2 for the San Jose, California-based company has to do with the strength of the U.S. dollar, Rainey said.

"We have foreign currency pressure," he said, referring to the problem of foreign earnings translating into fewer U.S. dollars due to the dollar's strength against other currencies.

Because about 20 percent of PayPal's business is "cross-border," a stronger dollar tends to put some pressure on its global earnings, Rainey explained.

"And then lastly, and somewhat tied to the currency pressure, is there are pockets in regions of the world right now where we see slower growth than we did at this point in time last year," the CFO told Cramer.

But while these potential weaknesses may persist in early 2019, PayPal is seeing longer-term tailwinds tied to the rise of digital payments and the number of people with mobile phones who don't have easy access to traditional financial services, Rainey said.

"I do believe that this is not going to be a winner-take-all game," he said of the mobile payments space. "I also believe that, with the secular tailwinds that we see in our business, there is a bit of a tendency of a rising tide lifting all ships. But we're in an excellent competitive position here."

Watch John Rainey's full interview here: show chapters PayPal CFO addresses 3 pain points in earnings: eBay, currency and 'pockets' of slower growth    6 Hours Ago | 08:01

Disclosure: Cramer's charitable trust owns shares of PayPal.

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Wall Street might want to root for Tom Brady and the Patriots at the Super Bowl

Sports fans are counting the minutes until Sunday's Super Bowl.

But, does your portfolio have rooting interests, too?

If you're an investor, you might want to back the New England Patriots, says Matt Maley, equity strategist at Miller Tabak and self-avowed mega Pats fan.

"If you look at the time when the Patriots lose the Super Bowl, the three times, that year the S&P sees an average loss of over 10 percent and yet in the years they win, it's actually seen a slight gain," Maley said on CNBC's "Trading Nation" on Tuesday.

When the Pats lost the Super Bowl in 2008 and 2018, the S&P 500 fell by 38 percent and 6 percent, respectively. Its 2012 losing game drags the average up as the S&P 500 rose by 13 percent.

"It's even more compelling for the Rams," Maley continues. "If you're rooting for the Rams, you're pretty much guaranteeing a fall of either 10 to 20 percent in the stock market."

"Guarantee" and "average" might be too strong a word for the correlation, Maley admits.

"When I talk about the NFL, I'm kind of like a politician. I don't want to confuse people with the facts. I just give them my version of the facts," he said.

The Patriots have another market watcher in their corner: Michael Bapis, managing director of Vios Advisors at Rockefeller Capital.

"I think you have to go with the Pats for a couple different reasons," he said on the segment. "The gods are just on their side so we're hoping those same gods will shine on the S&P 500 for the year. But also, in the Brady and Belichick era, in their wins, the market is up an average of 3.5 percent and in their losses, it's over 8.5 percent down."

Patriots quarterback Tom Brady has been with the team since 2000 and has led it to five Super Bowl victories. Bill Belichick has been head coach over the same stretch.

But if you're not a Pats fan, there's something else that could happen on the field that may portend a solid market return this year, says Bapis.

"With the exception of last year, when the score goes over 46, the markets are up over 16 percent in that same year," said Bapis. "We're rooting I guess for the Pats, and we're definitely rooting for the over."

Aside from 2018, the last five times the Super Bowl scoreboard has totaled more than 46, the S&P 500 has risen by an average 12 percent.

Disclosure: Maley and Bapis agree this Super Bowl indicator is not a reliable investment thesis and does not constitute financial advice.

Disclaimer