24/7 Wall St. » CLS

2012 Outlook For EMS Sector Upside (BHE, CLS, FLEX, JBL, SANM, AAPL)

Administrator — Wed, 11 Jan 2012 13:20:37 +0000

Most electronics manufacturing services outfits, EMS companies, have recovered handily from the lowest points in November, but most of these remain significantly off of their highs over the last year. Some may argue that their charts have moved out of their downward trends now. What is interesting is that with the U.S. breaking away from the woes of Europe and with the aftermath of the Thai floods abating somewhat, it is possible that these EMS stocks could offer significant value in 2012 and for long-term investors.

Benchmark Electronics Inc. (NYSE: BHE), Celestica Inc. (NYSE: CLS), Flextronics (NASDAQ: FLEX), Jabil Circuit Inc. (NYSE: JBL), and Sanmina-SCI Corporation (NASDAQ: SANM) all hang in the balance. Unfortunately, the consumer move to Apple Inc. (NASDAQ: AAPL) and Apple’s use of Foxconn is another wildcard (even with its suicide problems) because much of the business goes in that direction. Still, upside remains in some of these names as most of these companies get business from multiple sectors outside of technology manufacturing.

We have looked at the current share price along with recent share performance. Also considered is the fundamental trends behind each, as well as the consensus price target from Thomson Reuters and current and forward price/earnings analysis.

Benchmark Electronics Inc. (NYSE: BHE) trades around $15.00 and the 52-week range is $12.01 to $20.24. With an $870 million market value, this one trades at 17-times expected earnings and 15-times expected 2012 earnings. Thomson Reuters has a mean price target objective of $14.90, indicating implied upside is non-existent.

Celestica Inc. (NYSE: CLS) trades around $8.00 and the 52-week range is $6.79 to $12.48, it is worth about $1.7 billion market value, this one trades at under 8-times expected earnings and slightly further under 8-times expected 2012 earnings. Thomson Reuters has a mean price target objective of $9.88, indicating implied upside of about 23%.

Flextronics (NASDAQ: FLEX) trades around $6.00, its 52-week range is $5.05 to $8.50, and it has a market cap of $4.3 billion, and . With an $870 million market value. Flextronics trades at 7-times expected earnings and about 5.6-times expected 2012 earnings. Thomson Reuters has a mean price target of $8.00, indicating implied upside of about 33%.

Jabil Circuit Inc. (NYSE: JBL) trades around $21.40 and the 52-week range is $13.94 to $23.09, so it is the least punished of the whole EMS lot. Jabil has a market value of about $4.4 billion. Its fiscal year is not until August, so its expected earnings multiple today is about 8.3-times expected earnings. Thomson Reuters has a mean price target of $23.73, indicating implied upside of about 10%.

Sanmina-SCI Corporation (NASDAQ: SANM) has a price of about $9.75 and the market value is just under $800 million. Its 52-week range is $6.01 to $17.32. Its fiscal year ends in September and it trades at a mere 6.7-times expected earnings. Thomson Reuters has a mean price target objective of $10.88, indicating implied upside of about 11%.

The achilles heel for these companies and their valuation is that all are international today and none of the group mentioned offer dividends to reward shareholders during the economic lull.

The good news is that these companies add and contract with the global trends. A slower India and China are not helping, but Japan has been coming back on after last year’s earthquake and tsunami wiped out the Japanese growth story. These companies are also tending to a poor European situation right now. Most earnings estimates for the year have already come down in recent weeks, but the question is whether or not those have come down enough.

JON C. OGG

Filed under: ADR, Business Services, Consumer Electronics, Consumer Goods, Corporate Governance, Economy, International Markets, PC Companies, Semiconductor, Technology Companies Tagged: AAPL, BHE, CLS, FLEX, JBL, SANM

13 Technology Stocks To Outperform Apple (AAPL, AKAM, BIDU, BMC, CLS, GLW, EMC, JNPR, MRVL, MU, NTAP, STX, VRSN, WDC)

Administrator — Wed, 19 Oct 2011 12:23:37 +0000

Apple Inc. (NASDAQ: AAPL) has been the king of tech stocks. While Apple’s results still showed rapid earnings and revenue growth, the report disappointed and results were below Wall Street’s expectations. And without Steve Jobs many investors are wondering whether Apple can continue to “wow” investors as it has over the last decade. Most analysts are tying Apple’s first earnings miss in years to customer delays of iPhone purchases as they waited for the new model introduced last week. Still, the media, and a few analysts, have brought up the question of whether this could be the end of an era. 24/7 Wall St. has identified 13 technology stocks that are expected to outperform Apple in the year ahead, especially now that Apple’s earnings have stumbled.

Apple hit an all-time high this week at $426.70. The stock closed at $422.20 on Tuesday just ahead of earnings. After the announcement, shares fell to about $400, which is where they are likely to open today. Analysts have a consensus price target of roughly $499.00 on the stock, which implies an upside of about 18% from Tuesday’s close, and an upside of 24.5% from $400. 24/7 Wall St. looked at these analyst numbers and found more than ten technology stocks with more implied upside.

In our screen, we only included companies with a market cap of $1 billion and higher. We also restricted the list to companies that are expected to post positive earnings this year and next and to those with long-term operating histories. We used consensus data on earnings and consensus analyst price targets from Thomson Reuters. We did additional analysis of our own on each company. Oddly enough, several of these companies are even tied to Apple’s businesses.

We include the most recent closing share prices, a 52-week range for comparison, and the Thomson Reuters consensus price target for the next twelve months. We have identified what the implied upside is to that price target, shown a year-to-date change from Finviz.com, and given a forward P/E ratio based on next year (2012 in most cases) earnings estimates.

Filed under: Analyst Calls, Consumer Electronics, Corporate Governance, Editor's Picks, PC Companies, Semiconductor, Shareholder Issues, Software, Technology Companies, Value Investing Tagged: AAPL, AKAM, BIDU, BMC, CLS, EMC, GLW, JNPR, MRVL, MU, NTAP, STX, VRSN, WDC

Top Analyst Upgrades & Downgrades (AMD, AMZN, BX, CAH, CLS, DRQ, ITMN, JBL, KKR, OKS, VLO)

Administrator — Thu, 29 Sep 2011 12:22:05 +0000

These are some of this Thursday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.

Advanced Micro Devices, Inc. (NYSE: AMD) Cut to Underperform at BofA/ML; Maintained Buy but cut target to $7 at Canaccord Genuity.
Amazon.com Inc. (NASDAQ: AMZN) Maintained Buy with $255 target at BofA/ML.
The Blackstone Group (NYSE: BX) Started as Neutral at Stern Agee.
Cardinal Health, Inc. (NYSE: CAH) named Bull of the Day at Zacks.
Celestica Inc. (NYSE: CLS) Started as Market Perform at BMO.
Dril-Quip, Inc. (NYSE: DRQ) Cut to Neutral at JPMorgan.
InterMune, Inc. (NASDAQ: ITMN) Reiterated Buy with $44 target at Canaccord Genuity.
Jabil Circuit Inc. (NYSE: JBL) Reiterated Buy and $24 target at Argus.
Kohlberg Kravis Roberts & Co. (NYSE: KKR) Started as Buy at Stern Agee.
ONEOK Partners. LP (NYSE: OKS) Raised to Outperform at Credit Suisse.
Valero Energy Corporation (NYSE: VLO) named as value stock of the day at Zacks.

JON C. OGG

Filed under: Analyst Calls Tagged: AMD, AMZN, BX, CAH, CLS, DRQ, ITMN, JBL, KKR, OKS, VLO

Top Analyst Upgrades & Downgrades (ALU, ACI, CLS, EBAY, FSLR, HES, HCBK, KBH, LULU, PKI, RENN, SKT)

Administrator — Thu, 30 Jun 2011 12:08:20 +0000

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

Alcatel-Lucent (NYSE: ALU) Raised to Buy at UBS.
Arch Coal Inc. (NYSE: ACI) Started as Buy at Soc-Gen.
Celestica Inc. (NYSE: CLS) Raised to Buy at Deutsche Bank.
eBay Inc. (NASDAQ: EBAY) Raised to Buy at BofA/ML.
First Solar Inc. (NASDAQ: FSLR) Maintained Neutral but raised target to $135 from $100 at Credit Suisse.
Hess Corporation (NYSE: HES) Raised to Buy at BofA/ML.
Hudson City Bancorp (NASDAQ: HCBK) Cut to Underperform as Bear of the Day at Zacks.
KB Home (NYSE: KBH) Raised to Hold at S&P Equity Research (late-Wednesday call).
Lululemon Athletica Inc. (NASDAQ: LULU) Cut to Neutral at Stern Agee.
PerkinElmer, Inc. (NYSE: PKI) Raised to Outperform as Bull of the Day at Zacks.
Renren Inc. (NYSE: RENN) Started as Outperform at Credit Suisse.
Tanger Factory Outlet Centers Inc. (NYSE: SKT) Started as Outperform at Credit Suisse.

You are invited to join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: ACI, ALU, CLS, EBAY, FSLR, HCBK, HES, KBH, LULU, PKI, RENN, SKT

Top Analyst Upgrades & Downgrades (BHI, BIIB, BRCD, COF, CLS, CNX, FGP, TFM, INTC, DATE, KOS, MCK, MCP, PCX, PTEN, BTU, PFCB)

Administrator — Mon, 20 Jun 2011 12:25:27 +0000

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

Baker Hughes Inc. (NYSE: BHI) Reiterated Hold at Argus.
Biogen Idec Inc. (NASDAQ: BIIB) Raised to Buy at ISI Group.
Brocade Communications Systems, Inc. (NASDAQ: BRCD) Maintained Buy with $7.50 target at Canaccord Genuity.
Capital One Financial Corporation (NYSE: COF) Reiterated Sell at Argus.
Celestica Inc. (NYSE: CLS) Maintained Buy but cut target to $11 at Argus.
Cimarex Energy Co. (NYSE: XEC) Started as Buy at Canaccord Genuity.
CONSOL Energy Inc. (NYSE: CNX) Raised to Neutral at Goldman Sachs.
Ferrellgas Partners (NYSE: FGP) Maintained Underperform as Bear of the Day at Zacks.
The Fresh Market, Inc. (NASDAQ: TFM) Raised to Overweight at JPMorgan.
Intel Corporation (NASDAQ: INTC) Maintained Buy with $28 target at Gleacher.
Jiayuan.com International Ltd. (NASDAQ: DATE) Started as Outperform at Oppenheimer.
Kosmos Energy Ltd. (NYSE: KOS) Started as Outperform at Credit Suisse.
McKesson Corporation (NYSE: MCK) Raised to Outperform as Bull of the Day at Zacks.
Molycorp, Inc. (NYSE: MCP) Raised to Overweight at Piper Jaffray.
Patriot Coal Corporation (NYSE: PCX) Raised to Conviction Buy List at Goldman Sachs.
Patterson-UTI Energy Inc. (NASDAQ: PTEN) Covered as Value Stock at Zacks.
Peabody Energy Corporation (NYSE: BTU) Raised to Buy at Goldman Sachs.
P.F. Chang’s China Bistro, Inc. (NASDAQ: PFCB) Cut to Equal-weight at Morgan Stanley.

JON C. OGG

Filed under: Analyst Calls Tagged: BHI, BIIB, BRCD, BTU, CLS, CNX, COF, DATE, FGP, INTC, KOS, MCK, MCP, PCX, PFCB, PTEN, TFM

Top Analyst Upgrades & Downgrades (ALTR, BWP, COF, CLS, CIEN, JRJC, DSX, DRYS, MDMD, MPEL, MWW, ORCL, POT, RIMM, SHLD)

Administrator — Fri, 17 Jun 2011 12:34:10 +0000

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

Altera Corporation (NASDAQ: ALTR) Raised to Outperform as Bull of the Day at Zacks.
Boardwalk Pipeline Partners, LP (NYSE: BWP) Started as Outperform at Credit Suisse.
Capital One Financial Corp. (NYSE: COF) Raised to Buy at SunTrust.
Celestica Inc. (NYSE: CLS) Cut to Sell at Citigroup.
Central Garden & Pet Company (NASDAQ: CENT) added as Value at Zacks.
CIENA Corporation (NASDAQ: CIEN) Raised to Neutral at UBS.
China Finance Online Co. Ltd. (NASDAQ: JRJC) Cut to Market Perform at Rodman & Renshaw.
Diana Shipping Inc. (NYSE: DSX) Cut to Underperform at CRedit Suisse.
DryShips, Inc. (NASDAQ: DRYS) Raised to Buy at Stern Agee.
MediaMind Technologies Inc. (NASDAQ: MDMD) Cut to Hold at ThinkEquity.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) Reiterated Outperform and raised target to $16 at Credit Suisse.
Monster Worldwide, Inc. (NYSE: MWW) Raised to Buy at UBS.
Oracle Corporation (NASDAQ: ORCL) Added to U.S. Focus List at Credit Suisse.
Potash Corp. of Saskatchewan (NYSE: POT) Raised to Buy at TD.
Research in Motion Ltd. (NASDAQ: RIMM) Cut to Sell at Citigroup.
Sears Holding Corp. (NASDAQ: SHLD) maintained Underperform as Bear of the Day at Zacks.

JON C. OGG

Filed under: Analyst Calls Tagged: ALTR, BWP, CIEN, CLS, COF, DRYS, DSX, JRJC, MDMD, MPEL, MWW, ORCL, POT, RIMM, SHLD

Top Analyst Upgrades & Downgrades (CLS, GLW, EFX, FNFG, INTU, MFE, MPEL, PTEN, RIMM, CRM, YGE)

Administrator — Fri, 20 Aug 2010 12:18:52 +0000

These are some of this Thursday’s top analyst calls with upgrades, downgrades, and initiations seen from Wall Street research firms:

Celestica Inc. (NYSE: CLS) Raised to Outperform at Scotia.
Corning Inc. (NYSE: GLW) Cut to Hold at Jefferies.
Equifax Inc. (NYSE: EFX) Started as Market Perform at Wells Fargo.
First Niagara Financial Group Inc. (NASDAQ: FNFG) Cut to Neutral at Janney (late yesterday call).
Intuit Inc. (NASDAQ: INTU) Maintain Outperform and Raised target to $45 at Oppenheimer.
McAfee Inc. (NYSE: MFE) Cut to Market Perform at FBR.
Melco Crown PBL (NASDAQ: MPEL) Started as Neutral at BofA/Merrill Lynch.
Patterson-UTI Energy Inc. (NASDAQ: PTEN) Cut to Neutral at Sterne Agee.
Research in Motion Ltd. (NASDAQ: RIMM) Cut to Underweight at Morgan Stanley.
Salesforce.com (NYSE: CRM) Maintained Buy and Raised target to $120 at Kaufman Bros.
Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) Reiterated Buy and Raised Target at Auriga.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: CLS, CRM, EFX, FNFG, GLW, INTU, MFE, MPEL, PTEN, RIMM, YGE

Top Day Trader Alerts (AEZS, KERX, AGCO, ACAS, CTIC, C, FLEX, CLS, SANM, JBL, OMTR, ADBE)

247wallst — Wed, 16 Sep 2009 13:15:41 +0000

These are this Wednesday morning’s top pre-market day trader alert and active trader alert stocks moving on unusual trading volume. We have a link through to more color and analysis on price and volume over at VSInvestor.com on each stock:

AEterna Zentaris Inc. (NASDAQ: AEZS) and Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX) are both ramping higher an FDA orphan-drug designation news.

Agco Corp. (AGCO) is trading lower by 7% on lower guidance.

American Capital Ltd. (NASDAQ: ACAS) is surging almost 20% after Corning Incorporated (NYSE: GLW) paid $400 million in cash for shares of another portfolio company.

Cell Therapeutics, Inc. (NASDAQ: CTIC) is up 5% on very active volume on more pixantrone for non-Hodgkin’s lymphoma news, but this is on positive data.

Citigroup, Inc. (NYSE: C) is up again on strong volume… we have color on prior day’s price levels here for inference.

Flextronics International Ltd. (NASDAQ: FLEX) is surging by almost 9% this morning after a Jim Cramer tout last night.. we are watching EMS rivals like Celestica Inc. (NYSE: CLS), Sanmina-SCI Corp. (NASDAQ: SANM) and Jabil Circuit Inc. (NYSE: JBL) on this.

Omniture, Inc. (NASDAQ: OMTR) is the biggest volume stock in the pre-market at NASDAQ after getting acquired by Adobe Systems, Inc. (NASDAQ: ADBE).

You can join our open email distribution list which goes out several times per week for top analyst upgrades and downgrades, top day trader alerts, IPO’s, key secondary offerings, guru investor data on Buffett and others, mergers, and more.

JON C. OGG
SEPTEMBER 16, 2009

Posted in After-Hours Activity, Pre-Market Activity, Trading Alert Tagged: ACAS, ADBE, AEZS, AGCO, C, CLS, CTIC, FLEX, JBL, KERX, OMTR, SANM

5 Friday Stock Winners Despite Market Carnage (CLS, COLM, INSU, IPCR, WDC)

247wallst — Fri, 24 Oct 2008 08:53:04 +0000

The few winners out there on this ugly friday morning are few and far between, but here are some of the stocks that have managed to actually trade higher despite futures having traded limit down and despite the massive tank at the open.

Celestica (NYSE: CLS) is trading up 13% at $4.15 on valuation after yesterday’s earnings. Its 52-week range is $3.60 to $9.86.
Columbia Sportswear Company (NASDAQ: COLM) is up almost 6% at $32.65 after yesterday’s earnings, 52-week range is $29.02 to $52.99.
Insituform Technologies Inc. (NASDAQ: INSU) is up 7% at $10.55 after earnings yesterday, but only 23,000 shares; prior 52-week range $9.26 to $19.15.
IPC Holdings Ltd. (NASDAQ: IPCR) up 14% at $23.00 after earnings and note conversions yesterday. 52-week range $19.05 to $33.75.
Western Digital Corp. (NYSE: WDC) is up almost 7% at $13.96 after yesterday’s earnings were better then rival Seagate; its 52-week range is $12.00 to $40.00.

Jon C. Ogg
October 24, 2008

Posted in HI/LOW, Technology Companies Tagged: CLS, COLM, INSU, IPCR, WDC

Top Pre-Market Analyst Upgrades (ACC, CLS, CHS, EL, JBLU, SLGN, TRMB)

247wallst — Fri, 24 Oct 2008 07:05:07 +0000

These are some of the top pre-market analyst upgrades we are seeing this Friday-crash morning:

American Campus (ACC) Raised to Outperform at Baird.
Celestica (CLS) Raised to Outperform at CIBC.
Chico’s FAS (CHS) Raised to Market Weight at Thomas Weisel.
Estee Lauder (EL) Raised to Neutral from Sell at Piper Jaffray.
Jetblue (JBLU) Raised to Overweight at JPMorgan.
Silgan Holdings (SLGN) Raised to Buy at Deutsche Bank.
Trimble Navigation (TRMB) Raised to Outperform at Oppenheimer.

Jon C. Ogg
October 24, 2008

Posted in Analyst Calls Tagged: ACC, CHS, CLS, EL, JBLU, SLGN, TRMB