24/7 Wall St. » ESRX

Closing Bell for Monday on Wall Street: Markets Open Lower, Fail to Gain Much Traction

Paul Ausick — Mon, 13 May 2013 20:04:56 +0000

U.S. equity markets opened lower this morning following a report from China that the country’s industrial production rose 9.3% in April, a smaller rise than economists expected. China also reported retail sales up 12.8%, inline with expectations, and fixed asset investment up 20.6%, just under the expectation of 21%. Elsewhere in Asia, Japan’s Nikkei rose more than 1% today as the yen fell to more than 102 against the U.S. dollar. There was no economic data of note in Europe. In the U.S., April retail sales posted a surprising 0.1% gain, even though sales at gasoline stations declined by 4.7% in the month.

The U.S. dollar index is trading up 0.16% today, now at 83.2770. The GSCI commodity index is down 0.9% at 629.36. WTI crude oil closed down 0.9%, at $95.17 a barrel on more news of plentiful crude oil supplies. Brent crude trades down 1.1% at $102.80 a barrel. Natural gas is up 0.4% today at about $3.93 per million BTUs. Gold settled down 0.2% today at $1,434.30.

The unofficial closing bells put the DJIA down more than 26 points to 15,091.91 (-0.18%), the NASDAQ rose about 2 points (0.06%) to 3,438.79, and the S&P 500 was flat at 1,633.77.

There were a several analyst upgrades and downgrades today, including:

Autozone Inc. (NYSE: AZO) cut to ‘hold’ at Deutsche Bank;
Express Scripts Inc. (NASDAQ: ESRX) raised to ‘buy’ at Jefferies;
T-Mobile US Inc. (NASDAQ: TMUS) raised to ‘buy’ at UBS;
Corning Inc. (NYSE: GLW) raised to ‘overweight’ at Barclays; and
Apollo Global Management LLC (NYSE: APO) raised to ‘outperform’ at Keefe Bruyette Woods..

Earnings reports since markets closed last Friday have resulted in some price changes for reporting companies as of the last half hour of trading today:

Silver Wheaton Corp. (NYSE: SLW) is down 3.4% at $23.50; and
Stratasys Ltd. (NASDAQ: SSYS) is up 2.8% at $85.76 as EPS topped estimates.

Before markets open tomorrow morning we are scheduled to hear earnings from Copa Holdings SA (NYSE: CPA), Renren Inc. (NYSE: RENN), Take-Two Interactive Software Inc. (NASDAQ: TTWO), Pan American Silver Corp. (NASDAQ: PAAS), and European Aeronautic Defence and Space Co. (EADS.PA).

Some standouts among heavily traded stocks today include:

Tesla Motors Inc. (NASDAQ: TSLA) is up 12.3% at $86.22, after posting a new all-time high of $87.29 earlier today. The all-electric automaker continues to bask in the glow of its first ever quarterly profit.

Warner Chilcott plc (NASDAQ: WCRX) is up 5.2% at $18.95. The generic drugs maker is confirmed to be in merger discussions with Actavis Inc. (NYSE: ACT), although no details have been revealed. The stock’s 52-week high is $22.11.

Molycorp Inc. (NYSE: MCP) is down 1.7% at $7.22. The rare earths miner is giving back of some of its 30% gain last Friday, following a good report on earnings.

Stay tuned for Tuesday. Philadelphia Fed President Charles Plosser is giving a speech. We have also noted the following events on the schedule (all times Eastern):

7:30 a.m. – National Federation of Independent Business optimism index
8:30 a.m. – Import and export prices
11:30 a.m. – 4-week bill auction

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: APO, AZO, CPA, ESRX, GLW, MCP, PAAS, RENN, SLW, SSYS, TMUS, TSLA, TTWO, WCRX

Top Analyst Upgrades and Stocks to Buy: AIG, Cisco, Corning and More

Jon C. Ogg — Mon, 13 May 2013 12:20:23 +0000

Investors and traders seem to be constantly looking for fresh research ideas that will lead to higher income or more profits. 24/7 Wall St. reviews many fresh research calls to find great ideas from value stocks to growth stocks to dividend stocks. We are breaking out the positive analyst calls and stocks to buy from the positive research calls. These are some of this Monday’s top analyst upgrades, initiations and positive analyst research calls seen from Wall Street today.

American International Group Inc. (NYSE: AIG) was raised to Overweight from Equal Weight at Barclays.

Apollo Global Management LLC (NYSE: APO) was raised to Outperform from Market Perform at Keefe Bruyette Woods.

Cisco Systems Inc. (NASDAQ: CSCO) was raised to Market Perform from Underperform at FBR Capital Markets.

Corning Inc. (NYSE: GLW) was raised to Overweight from Equal Weight at Barclays.

Express Scripts Inc. (NASDAQ: ESRX) was raised to Buy from Hold at Jefferies.

Franklin Resources Inc. (NYSE: BEN) was raised to Buy from Neutral at UBS.

Hartford Financial Group Inc. (NYSE: HIG) was raised to Overweight from Equal Weight at Barclays.

Sequenom Inc. (NASDAQ: SQNM) was raised to Neutral from Underperform at Credit Suisse.

T-Mobile USA Inc. (NYSE: TMUS) was raised to Buy from Neutral at UBS.

W.W. Grainger Inc. (NYSE: GWW) was raised to Outperform from Market Perform at Raymond James.

XL Group PLC (NYSE: XL) was named as Bull of the Day at Zacks Investment Research.

Fairway Group Holdings Corp. (NASDAQ: FWM) saw its quiet period come to an end and was given mostly positive research calls: started as Outperform at Credit Suisse, started as Buy at BB&T, started as Buy at Jefferies and started as Outperform at Oppenheimer.

Oppenheimer strategist raises the firm’s year-end 2013 S&P 500 price and earnings targets to 1,730 for the index and $109.00 for the total earnings per share estimate.

Filed under: Active Trader, Analyst Calls, Value Investing Tagged: AIG, APO, BEN, CSCO, ESRX, FWM, GLW, GWW, HIG, SQNM, XL

Top Institutional Portfolio Stocks to Buy at Oppenheimer

Lee Jackson — Mon, 06 May 2013 12:10:23 +0000

Friday’s nonfarm payroll number was a pleasant surprise. However, for real growth to return we need to consistently add 250,000 jobs per month. Our economy is sluggish at best, and corporate profit margins are at or near cyclical highs following several years of cost reductions. This very mixed picture for investors implies that sector, industry and stock selection is extremely important now.

The Institutional Portfolio team at Oppenheimer ran extensive screens and filtered for stocks that have the qualities needed at this lofty level of the markets. Scanning everything from market breadth to companies that beat sales expectations, they have a list of stocks to buy that should hold their ground even in the event of a market correction.

Here are the institutional stocks to buy at Oppenheimer broken out by sector.

Materials: Celanese Corp. (NYSE: CE) is the stock to buy in this sector. Celanese engages in the manufacture and sale of value-added chemicals, thermoplastic polymers and other chemical-based products. The Thomson/First Call estimate for the stock is $54.

Industrials: Owens Corning (NYSE: OC) is one of three names to buy in this sector. Owens Corning produces and sells glass fiber reinforcements and other materials for composite systems and residential and commercial building materials worldwide. The consensus price target is $49.

Republic Services Inc. (NYSE: RSG) is one of the largest waste management companies in the United States. Bill Gates’s investment company Cascade holds a large position in the stock. The consensus target for the stock is $37. Republic pays a 2.8% dividend.

Norfolk Southern Corp. (NYSE: NSC), although a railroad, it is placed in the industrials category at Oppenheimer. With coal shipments rebounding, earnings have grown smartly. The consensus is $84.50. Shareholders receive a 2.60% dividend.

Consumer Discretionary: Johnson Controls Inc. (NYSE: JCI) has hit new highs recently as sales surge to home builders and automakers. The consensus price target is $36. Investors are paid a 2.20% dividend.

Chipotle Mexican Grill Inc. (NYSE: CMG) makes the Oppenheimer list. Often a target of short sellers, Chipotle continues to expand at a fast pace. The consensus price objective for the stock is $375.

Consumer Staples: Walgreen Co. (NYSE: WAG) is the largest drug retailing chain in the United States, with stores in all 50 states. With the long running dispute with Express Scripts Holding Co. (NASDAQ: ESRX) settled, the stock has been on fire. The consensus estimate is $50. Shareholders receive a 2.20% dividend.

Health Care: Aetna Inc. (NYSE: AET) is the managed care pick in this sector at Oppenheimer. Investors are carefully watching how the Affordable Care Act (aka Obamacare) will affect corporate earnings. The consensus price target for the stock is $60. Aetna pays a 1.40% dividend.

BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) is also a stock to buy. With the company’s explosive “orphan drug” pipeline, the stock hit a 52-week high on Friday. The consensus price target for BioMarin is $67.

Technology: Corning Inc. (NYSE: GLW) is another stock that hit a 52-week high on Friday. With five different segments generating revenue, the stock could be poised for a substantial breakout. The consensus target is $15. Investors receive a 2.80% dividend.

Lam Research Corp. (NASDAQ: LRCX) is the other top tech stock to buy at Oppenheimer. The company designs, manufactures, markets, refurbishes and services semiconductor processing equipment used in the fabrication of integrated circuits. The consensus price target is $50.

With giddy traders pushing all of the indices to either record or multiyear highs, investors need to be selective when putting any capital to work. Generally, knowing when to sell is much harder than knowing when to buy. Readers may want to examine their portfolios and sell partial positions of any big winners and hold the cash to purchase new shares after a market correction.

Filed under: Active Trader, Analyst Calls Tagged: AET, BMRN, CE, CMG, ESRX, featured, GLW, JCI, LRCX, NSC, OC, RSG, WAG

24/7 Wall St. Closing Bell — Tuesday: Markets Mixed at Open, Closes Slightly Higher

Paul Ausick — Tue, 30 Apr 2013 20:06:01 +0000

U.S. equity markets opened mixed this morning as investors weighed conflicting data from the U.S., Europe, and Asia. In Europe, retail sales declined more than expected in Germany, Italy’s unemployment rate remained unchanged at 11.5%, and eurozone inflation moderated to 1.2%, below a forecast for inflation of 1.6%. In Asia, Japanese industrial production rose less than expected, retail unexpectedly fell, and unemployment came in below expectations. In the U.S., the S&P Case-Shiller housing price index rose more than expected (more coverage here), while the Chicago PMI came in well below expectations and chilled investors for a spell this morning (more coverage here). The latest U.S. consumer confidence index came in higher than expected, which put some heat back into the morning trading session (more coverage here).

The U.S. dollar index is trading down 0.47% today, now at 81.762. The GSCI commodity index is up 1.2% at 629.99. WTI crude oil closed down 1.1%, at $93.46 a barrel, down 3.9% for the month of April. Brent crude trades down 1.6% at $102.19 a barrel. Natural gas is down 0.4% today at about $4.15 per million BTUs. Gold settled up 0.3% today at $1,472.10 an ounce, but lost 7.8% for the month, the largest drop in 16 months.

The unofficial closing bells put the DJIA up more than 20 points to 14,839.18 (0.14%), the NASDAQ rose nearly 22 points (0.66%) to 3,328.79, and the S&P 500 rose 0.24% or nearly 4 points to 1,597.45.

There were a several analyst upgrades and downgrades today, including Pandora Media Inc. (NYSE: P) initiated as ‘sector perform’ at RBC Capital Markets; Buffalo Wild Wings Inc. (NASDAQ: BWLD) cut to ‘hold’ at KeyBanc; Best Buy Co. Inc. (NYSE: BBY) raised to ‘buy’ at Deutsche Bank (more coverage here); PulteGroup Inc. (NYSE: PHM) cut to ‘neutral’ at J.P. Morgan; and SINA Corp. (NASDAQ: SINA) raised to ‘buy’ at Jefferies.

Earnings reports since markets closed last night resulted in some price moves today, including these as of the last half hour of trading: Embraer SA (NYSE: ERJ) is up 6.7% at $34.94; Express Scripts Holding Co. (NASDAQ: ESRX) is up 1.6% at $59.38; General Growth Properties Inc. (NYSE: GGP) is up 2.2% at $22.50 after posting a new 52-week high of $22.80 earlier today; Herbalife Ltd. (NYSE: HLF) is up 2.7% at $39.78 (more coverage here); Hertz Global Holdings Inc. (NYSE: HTZ) is up 0.2% at $24.03 after posting a new 52-week high of $24.79 earlier today; Newmont Mining Corp. (NYSE: NEM) is down 5% at $32.27 after posting a new 52-week low of $31.33 earlier today; Riverbed Technology Inc. (NASDAQ: RVBD) is up fractionally at $14.86; 3D Systems Corp. (NYSE: DDD) is up 7.3% at $38.39; Aetna Inc. (NYSE: AET) is up 2.5% at $57.55 after posting a new 52-week high of $58.63 earlier today; Anheuser-Busch InBev SA (NYSE: BUD) is up 0.3% at $95.72; Avon Products Inc. (NYSE: AVP) is up 4.5% at $23.23 after posting a new 52-week high of $24.30 earlier today; BP plc (NYSE: BP) is up 2.3% at $43.61 (more coverage here); Harvest Natural Resources Inc. (NYSE: HNR) is down 5.5% at $3.25; Marathon Petroleum Corp. (NYSE: MPC) is down 4.9% at $78.39; Office Depot Inc. (NYSE: ODP) is up 4.9% at $3.88; United States Steel Corp. (NYSE: X) is up 0.3% at $17.59; and Valero Energy Corp. (NYSE: VLO) is down 2.5% at $40.17 (more coverage here).

Before markets open tomorrow morning we are scheduled to hear earnings reports from Affymetrix Inc. (NASDAQ: AFFX), Bankrate Inc. (NYSE: RATE), Leap Wireless International Inc. (NASDAQ: LEAP), Spectrum Brands Holdings Inc. (NYSE: SPB), Trulia Inc. (NASDAQ: TRLA), Vanguard Health Systems Inc. (NYSE: VHS), ADT Corp. (NYSE: ADT), Chesapeake Energy Corp. (NYSE: CHK), Comcast Corp. (NASDAQ: CMCSA), Humana Inc. (NYSE: HUM), James River Coal Co. (NASDAQ: JRCC), Mastercard Inc. (NYSE: MA), and Viacom Corp. (NASDAQ: VIAB).

Some standouts among heavily traded stocks today include:

Sirius XM Radio Inc. (NASDAQ: SIRI) is up 5.5% at $3.24 after posting a new 52-week high of $3.25 earlier today. The satellite radio company posted good numbers and made permanent the hire of interim CEO James Meyer.

Delcath Systems Inc. (NASDAQ: DCTH) is down 39.8% at $0.84. The pharmaceutical and medical device maker will have to repeat a clinical trial.

Pitney Bowes Inc. (NYSE: PBI) is down 16.6% at $13.52. The business equipment company had a 57% drop in profits and cut its dividend.

Stay tuned for Wednesday. The Federal Open Market Committee (FOMC) concludes a two-day meeting. We have also noted the following events on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
8:15 a.m. – ADP employment report
8:58 a.m. – PMI manufacturing index
10:00 a.m. – ISM manufacturing index
10:00 a.m. – Construction spending
10:30 a.m. – EIA weekly petroleum status report
2:00 p.m. – FOMC meeting announcement

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ADT, AET, AFFX, AVP, BBY, BP, BUD, BWLD, CHK, CMCSA, DCTH, DDD, ESRX, GGP, HLF, HNR, HTZ, HUM, JRCC, LEAP, MA, MPC, NEM, ODP, P, PBI, PHM, RATE, RVBD, SINA, SIRI, SPB, TRLA, VHS, VIA-B, VLO, X

24/7 Wall St. Closing Bell — Monday: Markets Open Higher, S&P Closes on New High

Paul Ausick — Mon, 29 Apr 2013 20:07:42 +0000

U.S. equity markets opened higher this morning after the U.S. Department of Commerce reported that personal income and spending both rose by 0.2%, which was slightly higher than expected for spending and slightly lower than expectations for income (more coverage here). We also noted the sharp drop in spending on energy and the impact that could have on oil and gasoline prices for the rest of this year (more coverage here). In Europe, new data was limited to Italian business confidence (down), Spanish retail sales (also down, but not as much as expected), and eurozone business and consumer survey (more coverage here). Italian government borrowing costs posted a two-year low (more coverage here). In Asia, both Japanese and Chinese markets were closed for a holiday. U.S. pending home sales rose in March, reversing a drop in February sales (more coverage here).

The U.S. dollar index is trading down 0.42% today, now at 82.159. The GSCI commodity index is down 0.5% at 622.29. WTI crude oil closed up 1.6%, at $94.50 a barrel. Brent crude trades up 0.5% at $103.72 a barrel. Natural gas is up 4% today at about $4.39 per million BTUs. Gold settled up 1% today at $1,467.40 an ounce.

The unofficial closing bells put the DJIA up more than 106 points to 14,818.83 (0.72%), the NASDAQ rose nearly 28 points (0.85%) to 3,307.02, and the S&P 500 rose 0.72% or more than 11 points to 1,593.59, a new high.

There were a several analyst upgrades and downgrades today, including Walt Disney Co. (NYSE: DIS) raised to ‘buy’ at UBS; Petroleo Brasileiro SA (NYSE: PBR), aka Petrobras, raised to ‘buy’ at BofA/Merrill Lynch; Union Pacific Co. (NYSE: UNP) cut to ‘hold’ at TD Securities; Gold Fields Inc. (NYSE: GFI) cut to ‘neutral’ at HSBC; and Abercrombie & Fitch Co. (NYSE: ANF) raised to ‘outperform’ at Macquarie.

Earnings reports since markets closed last Friday resulted in some price moves today, including these as of the last half hour of trading: Eaton Corp. (NYSE: ETN) is up 3.6% at $60.76; Loews Corp. (NYSE: L) is up 0.4% at $44.63 (more coverage here); Senior Housing Properties Trust (NYSE: SNH) is down 1.4% at $28.18; and Sohu.com Inc. (NASDAQ: SOHU) is down 0.2% at $50.66.

Before markets open tomorrow morning we are scheduled to hear earnings reports from Embraer SA (NYSE: ERJ), Express Scripts Holding Co. (NASDAQ: ESRX), General Growth Properties Inc. (NYSE: GGP), Herbalife Ltd. (NYSE: HLF), Hertz Global Holdings Inc. (NYSE: HTZ), Newmont Mining Corp. (NYSE: NEM), Riverbed Technology Inc. (NASDAQ: RVBD), 3D Systems Corp. (NYSE: DDD), Aetna Inc. (NYSE: AET), Anheuser-Busch InBev SA (NYSE: BUD), Avon Products Inc. (NYSE: AVP), BP plc (NYSE: BP), Harvest Natural Resources Inc. (NYSE: HNR), Marathon Petroleum Corp. (NYSE: MPC), Office Depot Inc. (NYSE: ODP), Sirius XM Radio Inc. (NASDAQ: SIRI), United States Steel Corp. (NYSE: X), and Valero Energy Corp. (NYSE: VLO).

Some standouts among heavily traded stocks today include:

Petroleo Brasileiro SA (NYSE: PBR) is up 6.6% at $19.23. Petrobras, as it’s known, reported lousy earnings, but it forecast growth going forward, added to a possible restart of drilling by Chevron Corp. (NYSE: CVX) in the Frade field following a year of inactivity due to a spill.

Conceptus Inc. (NASDAQ: CPTS) is up 19.5% at $30.95. The medical device maker is being acquired by Germany’s Bayer AG $1.1 billion.

Zynga Inc. (NASDAQ: ZNGA) is down 3.6% at $3.23. The social games maker had no news today, but is giving back some of Friday’s gains, which followed losses earlier last week on a weak earnings report.

Stay tuned for Tuesday. The Federal Open Market Committee (FOMC) begins a two-day meeting. We have also noted the following events on the schedule (all times Eastern):

8:30 a.m. – Employment cost index
9:00 a.m. – S&P Case-Shiller house price index
9:45 a.m. – Chicago purchasing manager’s index
10:00 a.m. – Conference Board consumer confidence index
11:30 a.m. – 4- and 52-week bill auctions
3:00 p.m. – Farm prices

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: AET, ANF, AVP, BP, BUD, CPTS, CVX, DDD, DIS, ERJ, ESRX, ETN, GFI, GGP, HLF, HNR, HTZ, L, MPC, NEM, ODP, PBR, RVBD, SIRI, SNH, SOHU, UNP, VLO, X, ZNGA

Major Companies That Refuse to Pay Dividends

Jon C. Ogg — Fri, 26 Apr 2013 10:55:22 +0000

Investors love dividends. This one investing component has comprised a major portion of total returns through time. The trend in recent years has been for companies to pay dividends and keep raising it. At the same time, many companies that have been around for sometime may have grown past their major growth phase. Some of these companies have started paying dividends, while others have chosen not to.

24/7 Wall St. praises dividends. We also want to call out the myriad of great companies that need to realize that times demand investor payouts. A few companies are still buying growth, and we have identified some of these players as well. The thesis behind offering a solid dividend is that it instills confidence in investors that the company has earnings visibility for years even when the business cycle slows.

Having a real dividend policy may also be the key to keeping nervous investors from fleeing and going into cash or Treasury bonds, which pay almost nothing these days. There are just still too many companies in denial that they are still growth companies when they need to start directly rewarding shareholders. Some companies can get away without paying out a single cent to owners because the value of growth is so strong. That list is shrinking these days. Most companies we identified are in what we would call the “Dividend Sinners” category.

Our review focuses on Amazon.com Inc. (NASDAQ: AMZN), Bed Bath & Beyond Inc. (NASDAQ: BBBY), Berkshire Hathaway Inc. (NYSE: BRK-A), Dollar General Corp. (NYSE: DG), Dollar Tree Inc. (NASDAQ: DLTR), eBay Inc. (NASDAQ: EBAY), Electronic Arts Inc. (NASDAQ: EA), EMC Corp. (NYSE: EMC), Express Scripts Inc. (NASDAQ: ESRX), Jack in the Box Inc. (NASDAQ: JACK), Teradyne Inc. (NYSE: TER), United Continental Holdings Inc. (NYSE: UAL), Yahoo! Inc. (NASDAQ: YHOO) and Zebra Technologies Corp. (NASDAQ: ZBRA). We have handicapped whether investors might expect a dividend in the near-term or long-term from each of these as well.

The first order of business is to identify some of the great companies that have started paying a dividend since we (and others) have called for them to act with dividend payments in the past year or two. A few would include Apple Inc. (NASDAQ: AAPL), Dell Inc. (NASDAQ: DELL), Cisco Systems Inc. (NASDAQ: CSCO), Amgen Inc. (NASDAQ: AMGN), Symantec Corp. (NASDAQ: SYMC) and NASDAQ OMX Group Inc. (NASDAQ: NDAQ).

Filed under: Activist Investor, Buffett, Compensation, Corporate Governance, Dividends & Buybacks, Personal Finance, Retail, Stock Buybacks, Stock Splits, Technology Tagged: AAPL, AMGN, AMZN, BBBY, BRK-A, CSCO, DG, DLTR, EA, EBAY, EMC, ESRX, featured, GME, JACK, LUV, MCD, SYMC, TER, UAL, VMW, VZ, WEN, YHOO, ZBRA

J.P. Morgan Says Apple and Other Underperforming Stocks Should Lead the Market in Second Quarter (AAPL, BRCM, CHKP, ESRX, MYL, TASR, CHS)

Lee Jackson — Fri, 05 Apr 2013 12:40:32 +0000

With earnings season kicking off next week and a plethora of challenging global news hitting the tape, investors are becoming a touch skeptical of the current rally. Are we hitting a bump in the road after strong gains and looking to rebound after a sell-off? Or are more obstacles currently present that could derail the march to the secular bull market?

J.P. Morgan Chase & Co. (NYSE: JPM) strategist Thomas Lee and his staff have concluded that leading stocks that underperformed in the first quarter of this year will pick up the baton and become the market leaders in the second quarter. In a research report released today, the mega Wall St. bank points out that the two worst-performing sectors in the first quarter have outperformed in the second quarter of the year in 2009, 2010, 2011 and 2012. They went on to point out that has been the case in 11 of the 13 years since 2000.

The sector with the worst performance for the quarter was technology. The team at J.P. Morgan point out that the tech sector has underperformed the other stock sectors by 11% (total return) over the past year. In addition, tech’s forward price-to-earnings (P/E) ratio is below the market’s for the first time in 17 years. For most investors, those would seem contrary statistics, given the explosion of smartphones and tablet sales.

Naturally, tech dominates J.P. Morgan’s list of stocks to buy in today’s report.

The biggest call of all, of course, is to buy Apple Inc. (NASDAQ: AAPL). The darling of portfolio managers for the past five years suddenly has been painted as a bumbling, unfocused tech company with no strategy and too much cash. The Thomson/First Call consensus target for the tech giant is $600. That would represent a 40% move from current levels.

Wireless chip leader Broadcom Corp. (NASDAQ: BRCM) is on the list, and right in the middle of its 52-week trading range, while markets touch record highs. With products that offer voice, video, data and multimedia connectivity in the home, office and mobile environments, Broadcom is a stock to buy. The Wall St. consensus target estimate is $40.

Security software leader Check Point Software Technologies Ltd. (NASDAQ: CHKP) is poised to be a second quarter leader. It is trading just 10% above a 52-week low, and the consensus price target for this cyber security leader is $55.

A nontech company that makes the J.P. Morgan list is Express Scripts Holding Co. (NASDAQ: ESRX). With strong earnings and cash flow, and an aging population more and more dependent on medication, the pharmacy business is expanding at a rapid rate. The consensus estimate for the stock is $64.50.

Generic drug leader Mylan Inc. (NASDAQ: MYL) could prove to be a second-quarter leader. With yet another generic product launch announced yesterday for Zovirax ointment, Mylan is on track for a strong first quarter. The consensus price estimate for the stock is $33.

Stun gun maker TASER International Inc. (NASDAQ: TASR) always provides a little controversy. It also shocked the street with strong first-quarter bookings. The consensus target for this volatile name is $10.50. That would represent an almost 40% move from current trading levels.

Former high flyer and specialty retailer Chico’s FAS Inc. (NYSE: CHS) may be ready to step back into the limelight. With popular stores that include Chico’s, White House/Black Market, Soma Intimates and Boston Proper, this favorite of the ladies could have a strong second-quarter move. The consensus estimate for the stock is $20.

Although the J.P. Morgan list is dominated by technology, drug and retail stocks also look ready to take over market leadership. After such a strong run, it just makes sense for investors looking to stay involved in equities, to rotate to names with more headroom to move.

Filed under: Active Trader, Analyst Calls, Turnarounds, Value Investing Tagged: AAPL, BRCM, CHKP, CHS, ESRX, featured, JPM, MYL, TASR

Top Analyst Upgrades and Downgrades (ACMP, ALXN, ADI, BIDU, BCS, ESRX, GMCR, LOW, MM, NTSP, RDN, SEE, SPLS, HOT, WIN)

Jon C. Ogg — Wed, 20 Feb 2013 13:20:13 +0000

These are some of this Wednesday’s top analyst upgrades, downgrades and initiations seen from Wall St. research calls.

Access Midstream Partners L.P. (NYSE: ACMP) reiterated Outperform but on Focus List at Credit Suisse.

Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) raised to Buy from Neutral at Lazard.

Analog Devices Inc. (NASDAQ: ADI) reiterated Outperform and raised target to $50 from $48 at Credit Suisse.

Baidu Inc. (NASDAQ: BIDU) cut to Underperform at CLSA.

Barclays PLC (NYSE: BCS) cut to Neutral at Goldman Sachs.

Express Scripts Holding Co. (NASDAQ: ESRX) cut to Neutral at Macquarie and reiterated Outperform at Credit Suisse.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) reiterated Buy and raised price target by $4 to $54 at Argus.

Lowe’s Companies Inc. (NYSE: LOW) reiterated Buy and raised target to $44 from $40 at Argus.

Millennial Media Inc. (NYSE: MM) cut to Equal Weight at Morgan Stanley.

NetSpend Holdings Inc. (NASDAQ: NTSP) has announced it is being acquired, and it has so far been downgraded by Credit Suisse and Stern Agee.

Radian Group Inc. (NYSE: RDN) raised to Positive at Susquehanna.

Sealed Air Corp. (NYSE: SEE) cut to Neutral at J.P. Morgan.

Staples Inc. (NASDAQ: SPLS) raised to Neutral at Citigroup.

Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) cut to Hold from Buy but target raised to $66 at Jefferies.

Windstream Corp. (NASDAQ: WIN) cut to Sell from Neutral at UBS.

UBS has five GARP picks, meaning growth at a reasonable price.

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ACMP, ADI, ALXN, BCS, BIDU, ESRX, GMCR, HOT, LOW, MM, NTSP, RDN, SEE, SPLS, WIN

24/7 Wall St. Closing Bell — February 19, 2013: Markets Keep Upward Momentum (GFI, APA, CSTR, WFC, BRK-A, CRMT, ESRX, NI, WIN, ADI, CF, DELL, HLF, AVI, CLH, DISH, LEAP, MGM, SODA, TOL, ODP, OMX, SPLS, NVGN, SPWR)

Paul Ausick — Tue, 19 Feb 2013 21:04:08 +0000

U.S. equity markets opened slightly higher this morning and managed to get within striking distance of five-year highs. There was little economic data released anywhere today, but what there was came out mixed. In Europe, the ZEW economic sentiment index rose more than expected in the eurozone. In Asia, no economic data was forthcoming at all today, the first trading day following a week-long closure of the Shanghai exchange in observance of the lunar new year holiday. In the U.S., the housing price index from the National Association of Home Builders ticked a bit lower, putting pressure on homebuilders’ stocks (more coverage here). Health insurance stocks fell on a proposal to lower 2014 Medicare and Medicaid co-payments (more coverage here).

The U.S. dollar index fell 0.18% today, now at 80.476. The GSCI commodity index is down 0.5% at 675.90, with commodities prices mixed again today. WTI crude oil closed up 0.8% today, at $96.66 a barrel. Brent crude trades down fractionally at $117.38 a barrel. Natural gas is up 3.7% today at about $3.27 per million BTUs. Gold settled down 0.3% today at $1,604.20 an ounce.

The unofficial closing bells put the DJIA up about 54 points to 14,035.75 (0.39%), the NASDAQ rose nearly 22 points (0.68%) to 3,213.59, and the S&P 500 rose 0.73% or about 11 points to 1,530.91.

There were a several analyst upgrades and downgrades today, including Gold Fields Inc. (NYSE: GFI) cut to ‘sell’ at Citigroup; Apache Corp. (NYSE: APA) cut to ‘neutral’ at Macquarie; Coinstar Inc. (NASDAQ: CSTR) cut to ‘underweight’ at J.P. Morgan; Wells Fargo & Co. (NYSE: WFC) raised to ‘outperform’ at KBW; and Berkshire Hathaway Inc. (NYSE: BRK-A) raised to ‘outperform’ at KBW.

Earnings reports since markets closed last Friday resulted in several price moves today, including these: America’s Car-Mart Inc. (NASDAQ: CRMT) is up 10.3% at $45.82; Express Scripts Holding Co. (NASDAQ: ESRX) is up 2% at $56.70 (more coverage here); NiSource Inc. (NYSE: NI) is up 1% at $27.05 after posting a new 52-week high of $27.40 earlier today; and Windstream Corp. (NASDAQ: WIN) is up 0.9% at $9.01.

After markets close today and before they open tomorrow morning we are scheduled to hear from Analog Devices Inc. (NASDAQ: ADI), CF Industries Holdings Inc. (NYSE: CF), Dell Inc. (NASDAQ: DELL), Herbalife Ltd. (NYSE: HLF), Avista Corp. (NYSE: AVA), Clean Harbors Inc. (NYSE: CLH), Dish Network Corp. (NASDAQ: DISH), Leap Wireless International Inc. (NASDAQ: LEAP), MGM Resorts International (NYSE: MGM), Sodastream International Ltd. (NASDAQ: SODA), and Toll Brothers Inc. (NYSE: TOL).

Some standouts from today include the following stocks:

Office Depot Inc. (NYSE: ODP) is up 9.8% at $5.04 after posting a new 52-week high of $6.09 earlier today. The office supply retailer is said to be in merger talks with competitor OfficeMax Inc. (NYSE: OMX), which itself is up 19.6% at $12.86 after posting its own new high of $14.08. Even larger competitor Staples Inc. (NASDAQ: SPLS) is up 12.9% at $14.62 on the news. More coverage here.

Novogen Ltd. (NASDAQ: NVGN) is up 227.3% at $6.84 after posting a new 52-week high of $7.60 earlier today. The Australia-based biotech company revealed highly positive results in a test of it ovarian cancer treatment.

SunPower Corp. (NASDAQ: SPWR) is up 16.8% at $13.37 after posting a new 52-week high of $13.66 earlier today. The solar panel maker is leading solar stocks higher as investors respond to some generally positive news in the sector.

Stay tuned for Wednesday. We have noted the following events on Tuesday’s schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
8:30 a.m. – Housing starts
8:30 a.m. – Producer price index
11:30 a.m. – 4-week bill auction
2:00 p.m. – FOMC minutes released

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ADI, APA, AVI, BRK-A, CF, CLH, CRMT, CSTR, DELL, DISH, ESRX, GFI, HLF, LEAP, MGM, NI, NVGN, ODP, OMX, SODA, SPLS, SPWR, TOL, WFC, WIN

Express Scripts’ Earnings, Revenues, Guidance Inline

Paul Ausick — Tue, 19 Feb 2013 12:35:39 +0000

Express Scripts Holding Co. (NASDAQ: ESRX) reported fourth-quarter and full-year 2012 results yesterday.

For the quarter, the pharmacy benefits management company posted adjusted diluted earnings per share (EPS) of $1.05 on revenues of $27.41 billion. In the same period a year ago, the company reported EPS of $0.82 on revenues of $12.10 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.02 and $25.46 billion in revenues.

On a GAAP basis, EPS for the quarter totaled $0.62, as well as $1.79 for the full year.

For the full year, Express Scripts reported EPS of $3.74 on revenues of $93.86 billion, compared with EPS of $2.97 on revenues of $46.13 billion in 2011.

The company’s CEO said:

2012 was a monumental year for Express Scripts as we closed the acquisition of Medco and made significant progress integrating the two companies. Our financial performance in 2012 was strong, and as we look to the future, we are well positioned to capitalize on the complementary strengths of the combined organization, which enhance our ability to improve health outcomes, lower health care costs and continue to deliver long-term growth.

For 2013, the company guided adjusted EPS at $4.20 to $4.30. The consensus estimate calls for EPS of $4.20 on revenues of $101 billion.

The company’s $29 billion acquisition of competitor Medco doubled its revenues in 2012, and the company is expected to dominate the pharmacy benefits management sector. Analysts originally had expected 2013 earnings to reach $4.50 a share, but the company said in November that the estimate was too high based on its view of business conditions. Yesterday’s report was no surprise given the November tip-off.

Shares are up 1.6% in premarket trading this morning, at $56.48 in a 52-week range of $49.79 to $66.06. Thomson Reuters had a consensus analyst price target of around $62.60 before today’s report.

Filed under: 24/7 Wall St. Wire, Earnings, Healthcare Tagged: ESRX