24/7 Wall St. » AN

Top Analyst Upgrades & Downgrades (APOL, ASML, AN, BAC, CHH, GLF, HSNI, IBN, INTC, M, MMI, NFLX, OSG, RSG, R, SM, SBUX, TDW, DIS, XRX)

Administrator — Tue, 10 Jan 2012 13:11:45 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Tuesday morning.

Apollo Group Inc. (NASDAQ: APOL) Reiterated Buy and raised price target to $63 from $55 at Argus.
ASML Holding N.V. (NASDAQ: ASML) Raised target at Credit Suisse.
AutoNation Inc. (NYSE: AN) Started as Neutral at Stern Agee.
Bank of America Corporation (NYSE: BAC) Cut to Underperform from Neutral at Zacks (late Monday call).
Choice Hotels (NYSE: CHH) Cut to Underperform from Neutral at Credit Suisse.
Gulfmark Offshore, Inc. (NYSE: GLF) Started as Outperform at Credit Suisse.
HSN, Inc. (NASDAQ: HSNI) Started as Buy at Stifel Nicolaus.
ICICI Bank Ltd. (NYSE: IBN) Cut to Underperform as Bear of the Day at Zacks.
Intel Corporation (NASDAQ: INTC) maintained as the top tech/semi pick for 2012 from Credit Suisse.
Macy’s Inc. (NYSE: M) Reiterated Outperform and raised target to $36 from $32 at Credit Suisse.
Motorola Mobility Holdings Inc. (NYSE: MMI) Maintained Sell at Argus.
Netflix, Inc. (NASDAQ: NFLX) Cut to Underperform from Neutral at BofA/ML.
Overseas Shipholding Group Inc. (NYSE: OSG) Cut to Market Perform at Wells Fargo.
Republic Services, Inc. (NYSE: RSG) Cut to Neutral at JPMorgan.
Ryder System, Inc. (NYSE: R) named as value stock of the day at Zacks.
SM Energy Co. (NYSE: SM) Maintained Outperform as Bull of the Day at Zacks.
Starbucks Corporation (NASDAQ: SBUX) Reiterated Buy and raised estimates at Argus.
Tidewater Inc. (NYSE: TDW) Started as Neutral at Credit Suisse.
The Walt Disney Co. (NYSE: DIS) Cut to Equal-weight at Barclays.
Xerox Corporation (NYSE: XRX) Cut to Equal-weight at Barclays.

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JON C. OGG

Filed under: Analyst Calls Tagged: AN, APOL, ASML, BAC, CHH, DIS, GLF, HSNI, IBN, INTC, M, MMI, NFLX, OSG, R, RSG, SBUX, SM, TDW, XRX

Value Choices in the Auto Industry (GM, F, HTZ, CAR, ZIP, AN, KMX, CRMT, ORLY, AZO, PBY)

Paul Ausick — Fri, 09 Dec 2011 18:42:25 +0000

The month of December was the leading month for new car sales in the US in 2010. It was the second leading month in 2009, and the pattern could continue this year as pent-up demand from buyers boosts sales. Investors, though, have picked a favorite in the industy, and it’s not the automakers themselves. Both General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F) have seen share prices deteriorate in the past month, as have car rental firms Hertz Global Holdings Inc. (NYSE: HTZ), Avis Budget Group Inc. (NYSE: CAR), and Zipcar Inc. (NASDAQ: ZIP). Dealers like AutoNation, Inc. (NYSE: AN), CarMax Inc. (NYSE: KMX), and America’s Car-Mart, Inc. (NASDAQ: CRMT) have risen the most, and parts stores like O’Reilly Automotive, Inc. (NASDAQ: ORLY), AutoZone, Inc. (NYSE: AZO), and Pep Boys – Manny, Joe, and Jack (NYSE: PBY) are mixed. There ought to be an opportunity here.

GM and Ford have both had median target prices lowered in the past month, and GM stock is trading down more than -7% today compared to its price on November 9th. GM’s median target price is now $33.00, and at today’s price of $21.28, the potential upside is 55%. Ford’s median target price is $15.00, and at today’s price of $11.04, its implied gain is nearly 36%. Battery fires in the Chevy Volt have weighed on GM shares, and Ford is being weighed down by uncertainty about a successor to its current CEO. Ford did reinstate a $0.05/share dividend recently, which gave the shares a bit of a boost.

If US sales rise as predicted in December, the potential upsides to these two stocks could close quickly. Toyota today lowered its earnings forecast for the fiscal year ending in March by more than 50%, citing supply problems due to the floods in Thailand. If there are buyers out there, GM and Ford could benefit from Toyota’s continuing troubles.

The car rental firms are all trading lower today than they were a month ago, and the implied gains for Hertz, Avis, and Zipcar are all above 80%. It might be best to think of those as signs of further deterioration in share prices and targets rather than any sort of implied upside.

The best performers have been the dealers. AutoNation has burst through its target price, and CarMax and America’s Car-Mart both have had their target prices raised in the past month. CarMax has the highest implied upside of the three, at 11%, while America’s Car-Mart’s potential upside is about 3%. Recent strength among these dealers should continue through this month, and this looks the one sector of the auto-related industry that stands to gain the most.

The parts stores have also performed well, with O’Reilly also busting through its median target price of $80 and posting a new 52-week high today at $81.24. AutoZone posted weak earnings earlier this week, which has pushed the share price down. But the company’s implied upside to a raised target price of $360.00 is about 9%. The Pep Boys have an implied upside of about 45%, based on a target price of $16.00 and current share price of $11.00. The company’s recent weak earnings report could indicate that the target price needs to come down, not that the share price is on its way up.

The search for a value play among these stocks would probably point to either GM or Ford, both of which appear to be undervalued and to be poised on the verge of a very good sales month. While the dealers and the parts stores have performed better recently, these stocks are pretty fully valued now. The implied gains of greater than 80% among the rental car companies is not a hopeful sign.

Paul Ausick

Filed under: Analyst Calls, Autos, Value Investing Tagged: AN, AZO, CAR, CRMT, F, GM, HTZ, KMX, ORLY, PBY, ZIP

When Car Sellers Pan Electric & Hybrid Cars (AN, GM)

Administrator — Mon, 05 Dec 2011 15:12:28 +0000

Mike Jackson, CEO of AutoNation Inc. (NYSE: AN) was on a CNBC video this morning on the heels of news that the November sales figures were up 21% from a year earlier. The overall tone was positive as far as the car business, particularly with Florida finally showing some signs of life. Where things get very interesting is over Mike Jackson’s take on hybrid and electric vehicles.

Jackson noted that trucks were still 53% of the business. As far as the hype and hope of hybrid and electric vehicles, there is a lot more talk than there is reality. He noted, “Yes, interest is extremely high… lots of conversations… 70% of our customers like to talk about hybrids. But, I have news for everybody at the end of the day it is about price. And consumers aren’t going to pay the price premium for electric vehicles and hybrids, even with the government subsidies.”

To show just how little of the business is really migrating, Jackson said that of that 70% of customers having an interest in hybrids, only about 2.5% of the customers actually buy the hybrids or electric vehicles.

On the Chevy Volt from General Motors Corp. (NYSE: GM), Jackson called it a technical marvel and he said people like to drive it. Unfortunately, he went on to note, “Customers say, ‘I will take a Chevy cruiser at 42 MPG and at half the price.’” He even noted that these vehicles often have $7,500 of subsidy in them, or $10,000 in California, so if you take out the subsidy there is nothing happening there.

Mr. Jackson ended by noting that prices of hybrid and electric vehicles will have to come down dramatically and at the end of the day. He even threw in the price point argument by saying that Americans are very practical and going to weigh what they save at the pump through time versus the higher up-front costs of these vehicles.

The question we would ask our readers is “What does this say about the world of hybrid and electric vehicles versus gas guzzlers?” It is probably not time to go out and short sell those oil companies any time soon.

The full CNBC video interview is here, and it discusses much more than just hybrid and electric vehicles.

JON C. OGG

Filed under: Alternative Energy, Autos, Economy, Green Biz, Retail, Transports Tagged: AN, GM

Top Analyst Upgrades & Downgrades (AMGN, AN, BXP, CREE, DOLE, GRMN, GILD, HIG, HAR, MSFT, NFLX, VRUS, TSN, WYNN, YUM)

Administrator — Tue, 22 Nov 2011 13:29:44 +0000

These are some of Tuesday’s top analyst upgrades, downgrades, and initiations seen from Wall Street research calls.

Amgen Inc. (NASDAQ: AMGN) Cut to Market Perform at BMO.
AutoNation Inc. (NYSE: AN) Raised to Neutral at Goldman Sachs.
Boston Properties Inc. (NYSE: BXP) Maintained Buy but cut target to $105 from $120 at Argus.
Cree Inc. (NASDAQ: CREE) Maintained Buy with $33 target at Canaccord Genuity.
Dole Food Co. Inc. (NYSE: DOLE) Cut to Underperform with $9 target at BofA/ML.
Garmin, Ltd. (NASDAQ: GRMN) reiterated Outperform as Bull of the Day at Zacks.
Gilead Sciences Inc. (NASDAQ: GILD) Raised to Outperform at BMO; Raised to Buy at Citigroup (late-Monday).
Hartford Financial Services Group (NYSE: HIG) Cut to Underperform as Bear of the Day at Zacks.
Harman International Industries Inc. (NYSE: HAR) named as Value stock of the day at Zacks.
Microsoft Corporation (NASDAQ: MSFT) Started as Hold at ThinkEquity.
Netflix, Inc. (NASDAQ: NFLX) Re-initiated as Sell with $60 target at Canaccord Genuity.
Pharmasset, Inc. (NASDAQ: VRUS) downgraded by Wells Fargo, UBS, Canaccord Genuity, Leerink Swann, and Citigroup after super-premium buyout.
Tyson Foods, Inc. (NYSE: TSN) Reiterated Buy at BofA/ML.
Wynn Resorts Ltd. (NASDAQ: WYNN) Cut to Neutral at Janney Capital.
YUM! Brands, Inc. (NYSE: YUM) added to U.S. Focus List at Credit Suisse.

JON C. OGG

Filed under: Analyst Calls Tagged: AMGN, AN, BXP, CREE, DOLE, GILD, GRMN, HAR, HIG, MSFT, NFLX, TSN, VRUS, WYNN, YUM

Target Prices for Auto Sector Stocks (GM, F, HTZ, CAR, ZIP, AN, KMX, CRMT, ORLY, AZO, PBY)

Paul Ausick — Wed, 09 Nov 2011 18:38:14 +0000

About three weeks ago, we looked at target prices and implied share price gains in a number of auto sector stocks. The quarterly earnings season had just begun, and hopes were pretty high for the sector. The stocks we considered were General Motors Co. (NYSE: GM), Ford Motor Co. (NYSE: GM), Hertz Global Holdings Inc. (NYSE: HTZ), Avis Budget Group Inc. (NYSE: CAR), Zipcar Inc. (NASDAQ: ZIP), AutoNation, Inc. (NYSE: AN), CarMax Inc. (NYSE: KMX), America’s Car-Mart, Inc. (NASDAQ: CRMT), O’Reilly Automotive, Inc. (NASDAQ: ORLY), AutoZone, Inc. (NYSE: AZO), and Pep Boys – Manny, Joe, and Jack (NYSE: PBY).

The automakers, General Motors and Ford, have remained essentially flat. GM’s report earlier today beat consensus estimates, but the outlook for the rest of the fourth quarter was lowered. If GM’s forecast comes true, the company could miss fourth quarter EPS estimates by as much as $0.50. The company earns profits only a bit better than Ford’s on sales that are about 10% higher. That means there are still costs to wring out of GM’s manufacturing. And the company’s China sales are not growing at the pace they were a year ago either.

GM’s target price remains at $42.00, which implies an 83% upside potential. Ford’s target price also remained the same, at $16, for an implied gain of 43% above today’s price. Neither target price is realistic in today’s economy.

Among the car rental companies, both Avis and Zipcar have had target prices cuts. Avis now has a target price of $24.50, down from $27 on October 20th. The potential upside has dropped from 133% to 87%.

The current share prices at Hertz and Avis are 12% and 13% higher, respectively, than they were on October 20th. Hertz’s implied gain at today’s stock price is 81%, and Avis’s is 87%. It is impossible to imagine a scenario in which either company makes a gain of that size. Far more likely are further target price cuts.

At Zipcar, the target price has dropped from $31.25 to $30.50, and upside potential has fallen from 80% to a shade above 70%. The company’s forward P/E also fell from an outrageous 273 to a more modest 149. Maybe someday the number will return to reality. Until then, target price cuts could be expected.

Among the auto dealerships, AutoNation got a boost to its median target price, from $32 to $32.50. The stock is trading today at $34.43, about 6% above its target price. But it’s share price is down from $37.06, a drop of about -7%. AutoNation reported a 6% sales gain year-over-year in October, with the biggest gain in its luxury car sales, which were up 27%.

Both CarMax and Car-Mart are trading higher than they were on October 20th, but there has been no change to the target price for either company. Car-Mart’s current price is only 11% below its target price, setting the stage for a boost if the company posts good numbers at its earnings report next week.

The largest change in the auto sector stocks we covered in October came in the parts suppliers group. O’Reilly’s median target price was raised from $68 to $80, and the shares are trading today at $77.74, a scant 3% below the new target. Shares posted a new high today at $77.94, on a day when the markets are down more than -2%.

Neither AutoZone nor Pep Boys was able to match that, as both have put up new 52-week lows since our October report.

All data from Yahoo! Finance and current prices were gathered at about noon today.

Paul Ausick

Filed under: Autos Tagged: AN, AZO, CAR, CRMT, F, GM, HTZ, KMX, ORLY, PBY, ZIP

The Best Performing S&P Stocks of 2011 (SPY, OKE, AN, ROST, LTD, GR, TSO, EQT, ERTS, WFM, RL, TDC, RRC, MA, HUM, CMG, VFC, ISRG, BIIB, EP, COG)

Administrator — Tue, 01 Nov 2011 16:08:23 +0000

October may have been one of the best months of many of our lives in equities. The SPDR S&P 500 (NYSE: SPY) rose by 10.9%. in October, but the year-to-date gain has been a mere 1.2% from the December 31, 2010 close to the close on October 31, 2011. 24/7 Wall St. wanted to see which stocks are up the most in percentage gains so far in 2011 in data provided by Capital IQ. This is a year-to-date move through the close of October 31, 2011. We have shown the S&P 500 Index gainers in order from lowest to highest. Another representation is how much implied upside there is to the Thomson Reuters consensus analyst price target as well. Those which are trading above their consensus price target have been given a “caution” ahead of the pricing data.

ONEOK Inc. (NYSE: OKE) 37.1% year-to-date; at $76.05 the consensus price target is $76.60.

AutoNation Inc. (NYSE: AN) 38.1% year-to-date; caution: at $38.94 the consensus price target is $31.28.

Ross Stores Inc. (NASDAQ: ROST) 38.7% year-to-date; caution: at $87.73 the consensus price target is $85.00.

Limited Brands, Inc. (NYSE: LTD) 39.0% year-to-date; at $42.71 the consensus price target is $44.71.

Goodrich Corporation (NYSE: GR) 39.2% year-to-date; This is being acquired, so no color.

Tesoro Corporation (NYSE:TSO) 39.9% year-to-date; at $25.94 the consensus price target is $20.31.

EQT Corporation (NYSE:EQT) 41.6% year-to-date; at $63.50 the consensus price target is $72.28.

Electronic Arts Inc. (NASDAQ: ERTS) 42.6% year-to-date; at $23.35 the consensus price target is $25.63. This was previously listed as our top pick for the best video game stock for 2011.

Whole Foods Market, Inc. (NASDAQ: WFM) 42.6% year-to-date; at $72.12 the consensus price target is $74.47.

Ralph Lauren Corporation (NYSE: RL) 43.2% year-to-date; caution: at $158.79 the consensus price target is $150.00.

Teradata Corporation (NYSE: TDC) 44.9% year-to-date; at $59.66 the consensus price target is $60.56.

Range Resources Corporation (NYSE: RRC) 53.0% year-to-date; at $68.84 the consensus price target is $76.50.

Mastercard Incorporated (NYSE: MA) 54.9% year-to-date; at $347.24 the consensus price target is $374.82. It seems odd to see one financial stock here.

Humana Inc. (NYSE: HUM) 55.1% year-to-date; at $84.89 the consensus price target is $88.71. Health insurance has not been as bad of a business as the administration was looking for.

Chipotle Mexican Grill, Inc. (NYSE: CMG) 58.1% year-to-date; caution: at $336.12 the consensus price target is $328.45. The growth continues, but it is at or close to being fully valued.

V.F. Corporation (NYSE: VFC) 60.4% year-to-date; at $138.22 the consensus price target is $144.33.

Intuitive Surgical, Inc. (NASDAQ: ISRG) 68.3% year-to-date; caution: at $433.86 the consensus price target is $419.27. DaVinci sales remain robust as more surgeons are looking for robotic surgery capabilities.

Biogen Idec Inc. (NASDAQ: BIIB) 73.5% year-to-date; caution: at $116.36 the consensus priced target is $115.22. Here is how this compared to the rest of its peers before earnings season.

El Paso Corp. (NYSE: EP) 81.8% year-to-date; being acquired so no color.

Cabot Oil & Gas Corporation (NYSE: COG) 105.3% year-to-date; ; at $77.72 the consensus price target is $91.32.

JON C. OGG

Filed under: HI/LOW, Index, Trading Alert Tagged: AN, BIIB, CMG, COG, EP, EQT, ERTS, GR, HUM, ISRG, LTD, MA, OKE, RL, ROST, RRC, SPY, TDC, TSO, VFC, WFM

Huge Gains Expected for Automotive Sector Stocks (GM, F, HTZ, CAR, ZIP, AN, KMX, CRMT, ORLY, AZO, PBY)

Paul Ausick — Thu, 20 Oct 2011 17:37:09 +0000

New car sales in September are estimated to have risen 19% year-over-year, though down -5.5% sequentially. The seasonally adjusted annual rate of new car sales is now set at about 12.9 million new cars. That’s better than original projections, but still well below 2007 annual sales of 16.1 million new cars. We’ll look today at target price estimates for General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F) to see how analysts are looking at the new car market going forward. Recent union settlements have also improved the outlook for these two firms, now that the threat of a strike is gone.Used car sales are estimated to have topped 36 million vehicles in 2010, and new car makers are competing with those sales by increasing incentives. There is also intense competition in the used car market from literally thousands of small dealers. We’ve got some insight today on new car dealer AutoNation, Inc. (NYSE: AN), and used car dealers CarMax Inc. (NYSE: KMX) and America’s Car-Mart, Inc. (NASDAQ: CRMT).

Competition plays a critical role in car rental agencies as well. We’ve gathered some data on Hertz Global Holdings Inc. (NYSE: HTZ) and Budget Group Inc. (NYSE: CAR), who were battling over Dollar Thrifty until earlier this month. We’ve also included Zipcar Inc. (NASDAQ: ZIP) in our review because there is evidence that its short-term rental model is about to get competition from both the big rental companies and the new car makers themselves.

Finally, we’ve looked at parts suppliers O’Reilly Automotive, Inc. (NASDAQ: ORLY), AutoZone, Inc. (NYSE: AZO), and Pep Boys – Manny, Joe, and Jack (NYSE: PBY). As car owners hold onto their cars longer, parts suppliers stand to profit.

All data from Yahoo! Finance and current stock prices were gather just before noon today.

General Motors Co. (NYSE: GM) has a median target price of $42.00 from 17 brokers. Shortly before noon today, shares are trading today at $22.78, for an implied gain of $19.22, or 84%. GM’s forward P/E is 5.24 and the company does not pay a dividend. The stock’s 52-week trading range is $19.05-$39.48, and at today’s price that’s about 20% above its 52-week low and 42% below the 52-week high.

Ford Motor Co. (NYSE: F) has a median target price of $16.00 from 15 brokers. Shares are trading today at $11.61, for an implied gain of $4.39, or 38%. Ford’s forward P/E is 6.59 and the company does not pay a dividend. The stock’s 52-week trading range is $9.05-$18.97, and at today’s price that’s about 28% above its 52-week low and 39% below the 52-week high.

Hertz Global Holdings Inc. (NYSE: HTZ) has a median target price of $21.00 from 5 brokers. Shares are trading today at $10.37, for an implied gain of $10.63 or 133%. Hertz’s forward P/E is 6.43 and the company does not pay a dividend. The stock’s 52-week trading range is $7.80-$17.64, and at today’s price that’s about 33% above its 52-week low and 41% below the 52-week high.

Avis Budget Group Inc. (NYSE: CAR) has a median target price of $27 from 5 brokers. Shares are trading today at $11.61, for an implied gain of $15.39, or 133%. Avis’s forward P/E is 8.95 and the company does not pay a dividend. The stock’s 52-week trading range is $8.45-$19.49, and at today’s price that’s about 37% above its 52-week low and 40% below the 52-week high.

Zipcar, Inc. (NASDAQ: ZIP) has a median target price of $31.25 from 4 brokers. Shares are trading today at $17.38, for an implied gain of $13.87, or 80%. Hertz’s forward P/E is an astronomical 273 as the company has yet to show a profit since its IPO in April. The company does not pay a dividend. The stock’s 52-week trading range is $16.50-$31.50, and at today’s price that’s about 5% above its 52-week low and 45% below the 52-week high.

AutoNation, Inc. (NYSE: AN) has a median target price of $32 from 8 brokers. Shares are trading today at $37.06, about 5% above its consensus target price. AutoNation’s forward P/E is 17.55 and the company does not pay a dividend. The stock’s 52-week trading range is $22.28-$41.55, and at today’s price that’s about 66% above its 52-week low and 10% below the 52-week high.

CarMax Inc. (NYSE: KMX) has a median target price of $33 from 13 brokers. Shares are trading today at $27.76, for an implied gain of $5.24, or 19%. CarMax’s forward P/E is 14.06 and the company does not pay a dividend. The stock’s 52-week trading range is $22.77-$37.02, and at today’s price that’s about 22% above its 52-week low and 25% below the 52-week high.

America’s Car-Mart, Inc. (NASDAQ: CRMT) has a median target price of $37 from 5 brokers. Shares are trading today at $29.89, for an implied gain of $7.11, or 24%. Car-Mart’s forward P/E is 8.86 and the company does not pay a dividend. The stock’s 52-week trading range is $22.77-$37.50, and at today’s price that’s about 31% above its 52-week low and 20% below the 52-week high.

O’Reilly Automotive, Inc. (NASDAQ: ORLY) has a median target price of $68 from 19 brokers. Shares are trading today at $70.16, about 2% above its consensus target price. O’Reilly’s forward P/E is 17.12 and the company does not pay a dividend. The stock’s 52-week trading range is $52.97-$72.00, and at today’s price that’s about 32% above its 52-week low and 3% below the 52-week high.

AutoZone, Inc. (NYSE: AZO) has a median target price of $350 from 17 brokers. Shares are trading today at $326.17, for an implied gain of $23.83, or 7.3%. AutoZone’s forward P/E is 12.59 and the company does not pay a dividend. The stock’s 52-week trading range is $229.84-$337.23, and at today’s price that’s about 42% above its 52-week low and 3% below the 52-week high.

Pep Boys – Manny, Joe, and Jack (NYSE: PBY) has a median target price of $16 from 5 brokers. Shares are trading today at $10.95, for an implied gain of $5.05, or 46%. The Pep Boys’s forward P/E is 9.43 and the company pays a dividend yield of 1.1%. The stock’s 52-week trading range is $7.86-$15.96, and at today’s price that’s about 39% above its 52-week low and 31% below the 52-week high.

As you can see, there are some of the auto-related stocks that are close to or are now fully valued. Still, there remains massive upside if the consensus analyst targets can be met. Some upside targets are still so high that you have to wonder if they have been updated to reflect the new reality or if they are even really attainable.

Paul Ausick

Filed under: auto, Labor & Unions Tagged: AN, AZO, CAR, CRMT, F, GM, HTZ, KMX, ORLY, PBY, ZIP

Week’s 10 Market Winners: Urban Outfitters, Netflix, And More

247wallst — Sat, 09 Jul 2011 11:36:16 +0000

In a week in which retail sales took a backseat only to jobs reports, Urban Outfitters (NASDAQ: URBN) moved higher by 12.7% as Morgan Stanley said the stock was undervalued.

Netflix (NASDAQ: NFLX) continued to show that gravity does not exist, at least for it. Share rose over 9% to an all-time high of $297.35. The stock has a 52-week low of $95.33. Netflix plans to conquer Latin America’s streaming content world as it has already done in the US.

Abercrombie & Fitch (NYSE: ANF), Target (NYSE: TGT), and Kohl’s (NYSE: KSS) were all helped by strong June retail results.

S&P 500 TOP 10 LISTS

BIGGEST STOCK PRICE GAINERS

FOR WEEK, MONTH (JULY) AND YEAR-TO-DATE AS OF JULY 7

S&P 500 WEEK TOP 10 (01 JUL – 07 JUL)	Ticker	Weekly Price Change (%)	Close Price 7Jul11	Close Price 1Jul11	Market Cap ($Mil)
Urban Outfitters Inc	URBN	12.7	32.58	28.92	5202.7
Netflix Inc	NFLX	9.1	292.42	267.99	15349.4
Abercrombie & Fitch Co.	ANF	8.2	74.36	68.72	6518.9
Target Corp	TGT	7.8	51.67	47.93	35608.1
Kohl’s Corp	KSS	7.7	55.78	51.79	15679.1
AutoNation Inc	AN	6.4	39.29	36.94	5810.5
Tesoro Corp	TSO	6.2	24.48	23.06	3519.5
Halliburton Co	HAL	5.9	54.30	51.29	49685.2
Cablevision Systems Corp	CVC	5.9	27.48	25.96	6418.5
Salesforce.com inc	CRM	5.9	158.13	149.39	21173.6
Source: Capital IQ

Filed under: Research Tagged: AN, ANF, CRM, CVC, HAL, KSS, NFLX, TGT, TSO, URBN

The 15 Corporate Earnings That Will Rule The Markets This Summer (AA, YUM, JPM, GOOG, C, AMZN, AMR, AN, MSFT, AAPL, KO, JNJ, UNH, INTC, EMC)

Administrator — Thu, 07 Jul 2011 10:31:33 +0000

24/7 Wall St. is probably not alone in noticing that there were very few earnings warnings issued by the major companies that dictate market trends going into the end of June. That and some recovering economic trends and lower commodity prices have all contributed to a feeling that the woes of Europe, as well as the woes of Japan and the tightening of China, are not quite as strong of headwinds that will easily kill the bull market. Earnings season is approaching fast and we are soon to get a direct reporting bias from many of the country’s top corporations. Whatever the reporting trend comes out to, the rest of the summer’s stock market bias is about to be set by this wave of earnings reports.

We have identified 15 of the first corporate earnings reports due in the next two weeks that are likely to set the broad tone for the market this summer. These top 15 companies are as follows: Alcoa, Inc. (NYSE: AA), Yum! Brands Inc (NYSE: YUM), J.P. Morgan Chase & Co. (NYSE: JPM), Google Inc. (NASDAQ: GOOG), Citigroup Inc (NYSE: C), Amazon.com Inc. (NASDAQ: AMZN), AMR Corporation (NYSE: AMR), Autonation Inc (NYSE: AN), International Business Machines Corporation (NYSE: IBM), Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Coca Cola Co. (NYSE: KO), Johnson & Johnson (NYSE: JNJ), UnitedHealth Group Inc (NYSE: UNH), Intel Corporation (NASDAQ: INTC), and EMC Corp (NYSE: EMC).

We looked at the current Thomson Reuters expectations for the past quarter and the coming quarter, and we have also added in data on prices and on recent trading ranges. More importantly, we have shown why these matter, what other companies or sectors they matter to, and added in additional color of what to look for on each.

Alcoa, Inc. (NYSE: AA) will kick earnings off for the summer on Monday, July 11 and Thomson Reuters has estimates of $0.35 EPS and $6.32 billion in revenues; next quarter estimates are $0.36 EPS and $6.36 billion in revenues. At $16.23, the market cap is roughly $17 billion and the 52-week trading range is $9.92 to $18.47. Alcoa has a dual purpose for investors. It can influence all of the metals and industrials, but some even try to interpolate “The Alcoa Effect” to a broader earnings season. Just because it is a DJIA component does not give it that right, but that is how some try to think. It did actually make our value screen of basic materials stocks in recent days. The obvious area to watch is future orders and pricing. We are not overly concerned with what it says about last quarter, but whether or not it comments about business picking up now for the second half. The look-back question is whether higher alumina prices have offset weakness out of Japan, India and China.

Yum! Brands Inc (NYSE: YUM) reports on Wednesday, July 13, and Thomson Reuters has estimates of $0.61 EPS and $2.70 billion in revenues; next quarter estimates are $0.84 EPS and $3.03 billion in revenues. At $56.30, the market cap is roughly $26 billion and the 52-week trading range is $38.43 to $57.04.YUM! is no McDonald’s, but the investment community is likely to treat many aspects of the fast-food and casual dining segment based upon its report. What will matter is whether or not it offers a clearer picture for the casual dining trends domestically. It will also act as a bellwether for the Chinese food and entertainment spending markets, where it is the go-to stock to make that determination. YUM! is also still working through PR issues at the Taco Bell level, even if the ‘problems’ were not exactly correct. Yum! could still be a top dividend rival of McDonald’s in the years ahead.

J.P. Morgan Chase & Co. (NYSE: JPM) reports on Thursday, July 14, and Thomson Reuters has estimates of $1.22 EPS and $25.22 billion in revenues; next quarter estimates are $1.19 EPS and $24.65 billion in revenues. At $40.56, the market cap is roughly $161 billion and the 52-week trading range is $35.55 to $48.54. Chase Bank is not the bank of the U.S., but it is “The Bank of the Privileged.” Investors will still try to use this as a benchmark “for the rest of us.” We continue to expect the individual credit metrics in credit card delinquencies and also in charge-offs to show improvement and we expect this bank to have been a beneficiary of all of the recent consumer credit improvements. The wild card is going to be the aftermath of Dodd-Frank and the higher imposed reserves that will be implemented after this year. It could be a serious drag to that continued earnings recovery. Another hint we will be looking for is a “raised guidance” of a sort as far as its dividend is concerned.

Google Inc. (NASDAQ: GOOG) did not confirm its earnings report until just this week. It is set to report earnings on Thursday, July 14. The online search giant, and online conglomerate, has estimates of $7.86 EPS and $6.53 billion in revenues; next quarter estimates are $8.30 EPS and $6.85 billion in revenues. As a reminder, those sales are ex-TAC, or ex-Traffic acquisition cost revenues. This matters for anything internet-related. It also matters for anything related to off-line advertising as well. It was just a short period ago that Google was tanking and heading well under $500.00, but a recent analyst call reiterated its same $800 price target.

Filed under: Business Services, Calendar, Compensation, Consumer Electronics, Corporate Governance, Earnings, Earnings Warning, Economy, Editor's Picks, Financial Stocks, Index, Large Cap Stocks, Metals, Transports Tagged: AA, AAPL, AMR, AMZN, AN, C, EMC, GOOG, INTC, JNJ, JPM, KO, MSFT, UNH, YUM

Top Analyst Upgrades & Downgrades (ADBE, ARG, AGN, AEO, AN, COG, FITB, F, GM, HUM, JBL, JNS, LEA, LINE, MRX, RSH, AMTD)

Administrator — Fri, 18 Mar 2011 12:23:13 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Friday morning.

Adobe Systems Inc. (NASDAQ: ADBE) Cut to Hold at S&P Equity Research (late-Thursday call).
Airgas, Inc. (NYSE: ARG) Cut to Neutral at BofA/ML.
Allergan Inc. (NYSE: AGN) Started as Neutral at Credit Suisse.
American Eagle Outfitters, Inc. (NYSE: AEO) Cut to Neutral at Susquehanna.
AutoNation Inc. (NYSE: AN) Cut to Neutral at Credit Suisse.
Cabot Oil & Gas Corporation (NYSE: COG) Raised to Buy at BofA/ML.
Fifth Third Bancorp (NASDAQ: FITB) Raised to Outperform at KBW.
Ford Motor Co. (NYSE: F) Started as Buy at Jefferies.
General Motors Co. (NYSE: GM) Started as Hold at Jefferies.
Humana Inc. (NYSE: HUM) Raised to Buy at Argus.
Jabil Circuit Inc. (NYSE: JBL) Raised to Hold at S&P Equity Research (late-Thursday call).
Janus Capital Group Inc. (NYSE: JNS) Raised to Hold at Citigroup.
Lear Corp. (NYSE: LEA) Started as Buy at Jefferies.
Linn Energy, LLC (NASDAQ: LINE) Started as Outperform at Baird.
Medicis Pharmaceutical Corp. (NYSE: MRX) Started as Underperform at Credit Suisse.
RadioShack Corporation (NYSE: RSH) Reiterated Underperform as Bear of the Day at Zacks.
TD AMERITRADE Holding Corporation (NASDAQ: AMTD) Raised to Buy at BofA/ML.

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JON C. OGG

Filed under: Analyst Calls Tagged: ADBE, AEO, AGN, AMTD, AN, ARG, COG, F, FITB, GM, HUM, JBL, JNS, LEA, LINE, MRX, RSH