24/7 Wall St. » TRV

Top Analyst Upgrades & Downgrades (ABB, APD, AKAM, COP, GD, HOG, HES, INFY, MAN, MAR, SAP, S, TRV, WPI)

Administrator — Thu, 26 Apr 2012 12:20:54 +0000

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

ABB Ltd. (NYSE: ABB) Cut to Neutral at JPMorgan.

Air Products & Chemicals Inc. (NYSE: APD) Raised to Equal-weight at Morgan Stanley.

Akamai Technologies, Inc. (NASDAQ: AKAM) Raised to Buy on weakness at UBS.

ConcoPhillips (NYSE: COP) Raised to Neutral at Macquarie.

General Dynamics Corp. (NYSE: GD) Cut to Equal-weight at Morgan Stanley.

Harley-Davidson, Inc. (NYSE: HOG) Raised to Overweight at Barclays.

Hess Corporation (NYSE: HES) Cut to Neutral at JPMorgan; Cut to Equal-weight at Barclays; Cut to Neutral at Credit Suisse.

Infosys Ltd. (NASDAQ: INFY) Raised to Buy at Citigroup.

ManpowerGroup (NYSE: MAN) named Bull of the Day at Zacks.

Marriott International (NYSE: MAR) Raised to Buy at Argus.

SAP AG (NYSE: SAP) Cut to Market Perform at Wells Fargo.

Sprint Nextel Corporation (NYSE: S) maintained Hold at Argus.

The Travelers Companies, Inc. (NYSE: TRV) Raised to Hold at Deutsche Bank.

Watson Pharmaceuticals, Inc. (NYSE: WPI) Raised to Buy at Citigroup.

If you enjoyed the top analyst upgrades and downgrades, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, mergers and more. Sign up in the box below.

JON C. OGG

Filed under: Analyst Calls Tagged: ABB, AKAM, APD, COP, GD, HES, HOG, INFY, MAN, MAR, S, SAP, TRV, WPI

Best Buy Appoints Weak CEO Search Committee as Chairman Lurks

247wallst — Sat, 21 Apr 2012 13:41:08 +0000

Best Buy’s (NYSE: BBY) board selected an astonishingly weak committee to begin the search for a new CEO after former chief executive Brian Dunn made a disgraceful exit. The committee’s opinion will not matter. Chairman and founder Richard M. Schulze continues to have de facto control over the large consumer electronics company which has savaged investor value through a series of poor management decisions. As of the last proxy, Schulze owned almost 18% of the firm’s outstanding shares. He is responsible for the corporation’s demise

Kelly J. Higgins Victor will chair the search committee. According to the last Best Buy proxy, since 1994 she has been president of Centera Corporation, an executive development and leadership coaching firm that she founded. She has no experience to run the search. It is a wonder she did not coach Dunn, who desperately needed it. Centera Corporation employees a total of only five “coaches” which make the firm a joke.

Lisa Caputo is also a member of the search committee. She is executive vice president, marketing, and communications of The Travelers Companies (NYSE: TRV). Caputo’s role is little more than acting as the senior PR person for her employer.

Ronald James sits on the search committee. He is president and chief executive officer of the Center for Ethical Business Cultures in Minneapolis. He should not even be on the Best Buy board, let alone the search committee, based on his current job.

The final member of the committee is Sanjay Kholsa. He is an executive vice president and president for Kraft (NYSE: KFT) developing markets. Kholsa, because of his experience as a global executive at a large company, is the only person on the committee with even close to the appropriate qualifications.

Investors should be disappointed with the composition of the committee, even if it is unlikely to make a recommendation without Schulze’s blessing. The backgrounds of the members are an indication that Best Buy’s board is just going through the motions as it tries to find a new leader.

Douglas A. McIntyre

Filed under: Corporate Governance Tagged: BBY, KFT, TRV

Travelers Stumbles, But Still Beats Estimates (TRV)

Paul Ausick — Thu, 19 Apr 2012 11:51:27 +0000

The Travelers Companies Inc. (NYSE: TRV) reported first quarter earnings this morning that were lower than for the same period a year ago, but well above consensus estimates. The company posted revenue of $6.4 billion compared with an estimate of $5.7 billion and $6.3 billion in the same period a year ago.

EPS came in at $2.02, well above the consensus estimate of $1.52 and higher than last year’s $1.92. Net income was lower this year, however, at $806 million compared with $839 million a year ago.

The company reported that it was able to increase premium prices in each of its divisions, and Travelers intends to keep working on the prices it charges for insurance given other difficulties. The CEO said:

Given that low investment yields and unusual weather patterns have continued, we remain committed to actively, but selectively, seeking price increases and improved terms and conditions in order to continue to improve returns.

Shares are up 2.9% in the pre-market this morning, at $61.20 in a 52-week range of $45.97-$64.17.

Filed under: Earnings, Financial Stocks Tagged: TRV

Top DJIA Earnings Previews For The Week Ahead (C, INTC, IBM, JNJ, KO, AXP, BAC, DD, MSFT, TRV, VZ, GE, MCD)

Administrator — Fri, 13 Apr 2012 17:10:22 +0000

Earnings season may be underway, but this coming week is going to be full of many key earnings reports. We actually have a full slate on deck with what appears to be 13 of the 30 DJIA components set to report earnings.

24/7 Wall St. has prepared previews on each of the 13 DJIA components as follows: Citigroup Inc. (NYSE: C); Intel Corporation (NASDAQ: INTC); International Business Machines Corporation (NYSE: IBM); Johnson & Johnson (NYSE: JNJ); The Coca-Cola Company (NYSE: KO); American Express Co. (NYSE: AXP); Bank of America Corporation (NYSE: BAC); E. I. du Pont de Nemours and Co. (NYSE: DD); Microsoft Corporation (NASDAQ: MSFT); Travelers Companies Inc. (NYSE: TRV); Verizon Communications, Inc. (NYSE: VZ); General Electric Co. (NYSE: GE); and McDonald’s Corporation (NYSE: MCD).

We have used Thomson Reuters consensus data, shown the current price and the target prices, and added in color on each if applicable.

Monday, April 16

Citigroup Inc. (NYSE: C) is due to report Monday morning and is the third money center bank to report. It was not allowed to boost its dividend. It seems as though “The Prince” may get more vocal for Citi to get to pay a higher dividend. This is at a substantial discount to its tangible book value. Thomson Reuters has estimates of $1.00 EPS and $19.85 billion in revenue.

Tuesday, April 17

Intel Corporation (NASDAQ: INTC) is up against multi-year highs with shares around $28.30 and it should be worth noting that the consensus price target from Thomson Reuters is currently at the market with a value of $28.33. Thomson Reuters has estimates of $0.50 EPS and $12.8 billion in revenue.

International Business Machines Corporation (NYSE: IBM) has a new CEO and has still been trying to fire on all cylinders while other IT-outfits have suffered. We will be watching the billions of backlog and its longer-term guidance. With shares around $204 it the current consensus of $207.35 pales in comparison to the street-high target of $230 we saw this last quarter. Thomson Reuters has estimates of $2.65 EPS and $24.77 billion in revenue.

Johnson & Johnson (NYSE: JNJ) continues to be under a cloud of recalls and at $63.50 this is down about 6% from its 52-week high now. The consensus price target is currently almost $72.00 per share. Thomson Reuters has estimates of $1.35 EPS and $16.26 billion in revenue.

The Coca-Cola Company (NYSE: KO) remains a defensive play as the market moves back and forth between risk and safety. At $72.20, the stock is barely down $2 from its 52-week high and the Thomson Reuters consensus price target is $76.75 and the consensus estimates are $0.88 EPS and $10.83 billion in sales.

Filed under: Calendar, Earnings, Economy, Editor's Picks, The Week Tagged: AXP, BAC, C, DD, GE, IBM, INTC, JNJ, KO, MCD, MSFT, TRV, VZ

24/7 Wall St. Closing Bell (TRV, LOW, MSI, PCS, MWW, BIG, GCO, BIOF, BAGL, YELP, SFLY, VRNG, PRTS, OSTK)

Paul Ausick — Fri, 02 Mar 2012 21:18:09 +0000

The major US stock indexes opened lower this morning following some weak data on European unemployment. Buyers tried to come back but low volume so far has kept trading lower, and a last-minute rally seems to have gone nowhere. The dollar is stronger today, with the dollar index up 0.75% at 79.379. The stronger dollar is pushing some commodities down, with crude oil the hardest hit. WTI crude closed down -2% at $106.70/barrel and Brent crude is down -1.84% at $123.88/barrel. Gold settled down -0.7% at $1,709.80/ounce.

The unofficial closing bells put the DJIA down nearly 3 points to12,977.57 (-0.02%), the NASDAQ fell nearly 13 points -0.43%) to 2,976.19, and the S&P 500 fell -0.32% or nearly 4.5 points to 1,369.63.

There were several analyst upgrades and downgrades today, including Travelers Companies (NYSE: TRV) cut to ‘equal weight’ at Morgan Stanley; Lowe’s Companies (NYSE: LOW) raised to ‘equal weight’ at Morgan Stanley; Motorola Solutions Inc. (NYSE: MSI) raised to ‘outperform’ at Credit Suisse; MetroPCS Communications Inc. (NYSE: PCS) maintained as ‘buy’ with $15 target price at Argus; and Monster Worldwide Inc. (NYSE: MWW) cut to ‘neutral’ at UBS.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Big Lots Inc. (NYSE: BIG) is down -4.2% at $42.61; Genesco Inc. (NYSE: GCO) is up 4.2% at $73.58 after posting a new 52-week high of $74.89 earlier today; Biofuel Energy Corp. (NASDAQ: BIOF) is up 5.5% at $0.76; and Einstein Noah Restaurant Group Inc. (NASDAQ: BAGL) is up 3.6% at $14.99.

Here’s our preview of next week’s earnings announcements.

Other standouts from today include the following stocks:

Yelp Inc. (NYSE: YELP) is up nearly 64% at $24.55 following its IPO at $15/share this morning. Move coverage here.

Shutterfly Inc. (NASDAQ: SFLY) is up 16% at $31.22. The social networking company has struck a deal with Eastman Kodak Co. (EKDKQ) to provide a stalking-horse bid for some of Kodak’s assets. More coverage here.

Vringo Inc. (AMEX: VRNG) is up more than 13% at $1.63. The social network app maker is probably getting a bump from the success of Yelp’s IPO.

U.S. Auto Parts Network Inc. (NASDAQ: PRTS) is down more than -19% at $4.00. The retail parts auto parts distributor missed consensus estimates last night.

Overstock.com Inc. (NASDAQ: OSTK) is down more than -11% at $6.11 after posting a new 52-week low of $5.89 earlier this morning. The online discounter posted an unexpectedly quarterly loss this morning.

Stay tuned for Monday. We have noted the following events on the schedule (all times Eastern):

10:00 a.m. – Factory orders

10:00 a.m. – ISM non-manufacturing index

11:30 a.m. – 3- and 6-month Treasury bill auction

Your email address

terms and conditions

Have a great weekend!

Paul Ausick

Filed under: 24/7 Wall St. Wire Tagged: BAGL, BIG, BIOF, GCO, LOW, MSI, MWW, OSTK, PCS, PRTS, SFLY, TRV, VRNG, Yelp

Top Analyst Upgrades & Downgrades (ALU, AWK, BLK, CMA, DPZ, KBH, LOW, PCS, MWW, MSI, RF, TAL, TCBI, TRV, UNM)

Administrator — Fri, 02 Mar 2012 13:31:04 +0000

These are some of this Friday’s top analyst upgrades, downgrades, and initiations seen in Wall Street research calls.

Alcatel-Lucent, S.A. (NYSE: ALU) Cut to Market Perform at Bernstein.

American Water Works Company, Inc. (NYSE: AWK) Cut to Neutral at Baird; named as Momentum stock of the day at Zacks.

BlackRock, Inc. (NYSE: BLK) Cut to Neutral at Credit Suisse.

Comerica Inc. (NYSE: CMA) Cut to Market Perform at Raymond James.

Domino’s Pizza Inc. (NYSE: DPZ) Reiterated Buy and raised target to $46 at Argus.

KB Home (NYSE: KBH) named as Bear of the Day with Underperform rating at Zacks.

Lowe’s Companies Inc. (NYSE: LOW) Raised to Equal-weight at Morgan Stanley.

MetroPCS Communications Inc. (NYSE: PCS) Maintained Buy with $15 target at Argus.

Monster Worldwide, Inc. (NYSE: MWW) Cut to Neutral at UBS.

Motorola Solutions, Inc. (NYSE: MSI) Raised to Outperform at Credit Suisse.

Regions Financial Corporation (NYSE: RF) Raised to Outperform at Raymond James.

TAL International Group Inc. (NYSE: TAL) named as Value stock of the day at Zacks.

Texas Capital Bancshares (NASDAQ: TCBI) Raised to Outperform as Bull of the Day at Zacks.

Travelers Companies (NYSE: TRV) Cut to Equal-weight at Morgan Stanley.

Unum Group (NYSE: UNM) Raised to Outperform at RBC Capital.

If you enjoyed the top analyst upgrades and downgrades, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, mergers and more. Sign up in the box below.

Your email address

terms and conditions

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ALU, AWK, BLK, CMA, DPZ, KBH, LOW, MSI, MWW, PCS, RF, TAL, TCBI, TRV, UNM

11 DJIA Reporting Earnings This Week (DD, JNJ, MCD, TRV, VZ, BA, UTX, T, CVX, PG)

Administrator — Mon, 23 Jan 2012 17:56:32 +0000

This coming week is going to be yet another action packed week of big corporate earnings which will move markets or will move their sectors. 24/7 Wall St. has identified each of the DJIA components reporting this week and we have 11 of the 30 DJIA stocks on deck. Earnings are coming from the following DJIA stocks by day:

Tuesday: E.I. DuPont de Nemours & Co. (NYSE: DD); Johnson & Johnson (NYSE: JNJ); McDonald’s Corporation (NYSE: MCD); Travelers Cos. Inc. (NYSE: TRV); and Verizon Communications Inc. (NYSE: VZ)

Wednesday: Boeing Co. (NYSE: BA) and United Technologies Corporation (NYSE: UTX)

Thursday: AT&T Inc. (NYSE: T) and Caterpillar Inc. (NYSE: CAT)

Friday: Chevron Corporation (NYSE: CVX) and Procter & Gamble Co. (NYSE: PG).

We have compiled Thomson Reuters estimates, when the earnings are due, and what the share pricing has been on each, and added in additional color if applicable.

TUESDAY

E.I. DuPont de Nemours & Co. (NYSE: DD), or just DuPont, just declared its normal dividend but it reports on Tuesday morning. The chemicals giant is expected to have earnings of $0.33 EPS and $8.53 billion in revenues. Shares are just under $50.00 and the 52-week range is $37.10 to $57.00.

Johnson & Johnson (NYSE: JNJ) has news of a patent loss ahead of its earnings report due Tuesday morning. The drug, medical products, and consumer products giant is expected to report earnings of $1.10 EPS and $16.28 billion in sales. With shares close to $65.00, the 52-week range is $57.50 to $68.05.

McDonald’s Corporation (NYSE: MCD) reports on Tuesday morning and the Golden Arches’ estimates for the fast food giant are $1.29 EPS and $6.80 billion in sales. Shares are within yet another hair of another all-time high and it has recently talked up sales and has already raised its dividend.

Travelers Cos. Inc. (NYSE: TRV) is still probably the most forgotten financial stock of the DJIA components. The insurer is expected to report earnings of $1.52 EPS and $5.47 billion in sales. With shares above $61.00, the 52-week trading range is $45.97 to $64.17.

Verizon Communications Inc. (NYSE: VZ) is due to lead of the telecom sector on Tuesday morning and earnings are expected to be $0.53 EPS on $28.4 billion in revenues. With shares around $39.00, the 52-week range is $32.28 to $40.48.

WEDNESDAY

Boeing Co. (NYSE: BA) may have a boost from the rival A380 having cracks in its wings, if the rationale is not one that “all super-jumbos ar scary.” Boeing reports Wednesday morning and the aerospace and defense giant is expected to report $1.00 EPS and $19.4 billion in revenues. With shares around $75.50, the 52-week range is $56.01 to $80.65.

United Technologies Corporation (NYSE: UTX) still appears to be the conglomerate with the most upside in 2012 according to analysts and GE’s recent earnings reaction has not done much to really amp-up expectations. The earnings are due Wednesday morning and the consensus targets are $1.46 EPS and $15.07 billion in revenues. With shares under $77.00, the 52-week range is $66.87 to $91.83 and the consensus price target is $89.44.

THURSDAY

AT&T Inc. (NYSE: T) is due on Thursday morning and estimates are $0.45 EPS and $31.94 billion in sales. Shares are back above $30 around $30.40 and the 52-week range is $27.20 to $31.94.

Caterpillar Inc. (NYSE: CAT) is expected to report Thursday morning and estimates are $1.73 EPS and $16.04 billion in sales. With shares back above $105.00, the 52-week range is $67.54 to $116.55 and the consensus price target is now $115.28.

FRIDAY

Chevron Corporation (NYSE: CVX) is due with earnings Friday morning and the oil giant’s consensus estimates are $2.93 EPS and $71.08 billion in sales. With shares around $106.40, the 52-week range is $86.68 to $110.99 and the consensus price target is $124.95. Keep in mind that Chevron is the second highest weighting in the DJIA due to its high share price.

Procter & Gamble Co. (NYSE: PG) is due to post the consumer product giant earnings report Friday morning. The consensus estimates are $1.08 EPS and $22.2 billion in sales. Shares are trading around $66.10 and the 52-week range is $57.56 to $67.72 and the consensus target is $72.37.

We will be releasing more detailed previews on each of these the day ahead of each earnings report this week. Additional data will be around forward earnings estimates for guidance, what the implied valuations are, color on what to look for in addition to earnings, as well as opinions from analysts, what the charts are showing, and what the options traders are expecting for a price move.

JON C. OGG

Filed under: Calendar, Earnings Tagged: BA, CVX, DD, JNJ, MCD, PG, T, TRV, UTX, VZ

11 DJIA Earnings Previews For The Week Ahead (DD, JNJ, MCD, TRV, VZ, BA, UTX, T, CVX, PG)

Administrator — Fri, 20 Jan 2012 20:34:28 +0000

The coming week is going to be yet another action packed week of big corporate earnings which will move markets or will move their sectors. 24/7 Wall St. has identified the DJIA components reporting next week and we have 10 of the 30 DJIA stocks reporting earnings. Earnings are coming from the following DJIA stocks: E.I. DuPont de Nemours & Co. (NYSE: DD); Johnson & Johnson (NYSE: JNJ); McDonald’s Corporation (NYSE: MCD); Travelers Cos. Inc. (NYSE: TRV); Verizon Communications Inc. (NYSE: VZ); Boeing Co. (NYSE: BA); United Technologies Corporation (NYSE: UTX); AT&T Inc. (NYSE: T); Caterpillar Inc. (NYSE: CAT); Chevron Corporation (NYSE: CVX); and Procter & Gamble Co. (NYSE: PG).

We have compiled Thomson Reuters estimates, when the earnings are due, and what the share pricing has been on each, and added in additional color if applicable. There are a few additional themes we would watch: dividend coverage, how a strong dollar is impacting earnings and competitiveness, making earnings on cost monitoring while revenues may be soft, and exposure to Europe.

TUESDAY

E.I. DuPont de Nemours & Co. (NYSE: DD), or just DuPont, reports on Tuesday morning. The chemicals giant is expected to have earnings of $0.33 EPS and $8.53 billion in revenues. Shares are just under $50.00 and the 52-week range is $37.10 to $57.00.

Johnson & Johnson (NYSE: JNJ) is due Tuesday morning. The drug, medical products, and consumer products giant is expected to report earnings of $1.10 EPS and $16.28 billion in sales. With shares close to $65.00, the 52-week range is $57.50 to $68.05.

McDonald’s Corporation (NYSE: MCD) is due to report on Tuesday morning and estimates for the fast food giant are $1.29 EPS and $6.80 billion in sales. Shares are within yet another hair of another all-time high and it has recently talked up sales and has already raised its dividend.

Travelers Cos. Inc. (NYSE: TRV), the most forgotten financial stock of the DJIA, is expected to report earnings of $1.52 EPS and $5.47 billion in sales. With shares above $61.00, the 52-week trading range is $45.97 to $64.17.

Verizon Communications Inc. (NYSE: VZ) is due to lead of the telecom sector on Tuesday morning and earnings are expected to be $0.53 EPS on $28.4 billion in revenues. With shares around $39.00, the 52-week range is $32.28 to $40.48.

WEDNESDAY

Boeing Co. (NYSE: BA) is due Wednesday morning and the aerospace and defense giant is expected to report $1.00 EPS and $19.4 billion in revenues. With shares around $75.50, the 52-week range is $56.01 to $80.65.

United Technologies Corporation (NYSE: UTX) may be the conglomerate with the most upside in 2012 according to analysts. The earnings are due Wednesday morning and the consensus targets are $1.46 EPS and $15.07 billion in revenues. With shares under $77.00, the 52-week range is $66.87 to $91.83 and the consensus price target is $89.44.

Read Also: Why The DJIA Could Peak Up 12% at 13,678 in 2012

THURSDAY

AT&T Inc. (NYSE: T) is due on Thursday morning and estimates are $0.45 EPS and $31.94 billion in sales. Shares are back above $30 around $30.40 and the 52-week range is $27.20 to $31.94.

Caterpillar Inc. (NYSE: CAT) is expected to report Thursday morning and estimates are $1.73 EPS and $16.04 billion in sales. With shares back above $105.00, the 52-week range is $67.54 to $116.55 and the consensus price target is now $115.28.

FRIDAY

Chevron Corporation (NYSE: CVX) is due with earnings Friday morning and the oil giant’s consensus estimates are $2.93 EPS and $71.08 billion in sales. With shares around $106.40, the 52-week range is $86.68 to $110.99 and the consensus price target is $124.95. Keep in mind that Chevron is the second highest weighting in the DJIA due to its high share price.

Procter & Gamble Co. (NYSE: PG) is due to post the consumer product giant earnings report Friday morning. The consensus estimates are $1.08 EPS and $22.2 billion in sales. Shares are trading around $66.10 and the 52-week range is $57.56 to $67.72 and the consensus target is $72.37.

We will be releasing more detailed previews the day ahead of each DJIA earnings report this coming week. Additional data will be around forward earnings estimates for guidance, what the implied valuations are, color on what to look for in addition to earnings, as well as opinions from analysts, what the charts are showing, and what the options traders are expecting for a price move.

Your email address

terms and conditions

JON C. OGG

Filed under: Calendar, Conglomerates, Earnings, Editor's Picks, Telecom Tagged: BA, CAT, CVX, DD, JNJ, MCD, PG, T, TRV, UTX, VZ

Top Analyst Upgrades & Downgrades (AGCO, APOL, BSX, CECO, DNDN, FDX, GS, HUN, ITW, INTC, KSS, SNDK, AMTD, TRV, UPS, URBN, VOD, HOGS)

Administrator — Fri, 06 Jan 2012 13:19:44 +0000

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

AGCO Corporation (NYSE: AGCO) Maintained Outperform as Bull of the Day at Zacks.
Apollo Group Inc. (NASDAQ: APOL) Reiterated Outperform and Raised Target to $60 at Credit Suisse.
Boston Scientific Corporation (NYSE: BSX) Maintained Hold but lowered estimates at Argus.
Career Education Corporation (NASDAQ: CECO) Cut to Hold at Argus.
Dendreon Corporation (NASDAQ: DNDN) Reiterated Neutral with $10 target at Baird.
FedEx Corporation (NYSE: FDX) Started as Outperform at Wells Fargo.
Goldman Sachs Group Inc. (NYSE: GS) Cut to Market Perform by Wells Fargo.
Huntsman Corporation (NYSE: HUN) named as Value Stock of the Day at Zacks.
Illinois Tool Works. Inc. (NYSE: ITW) Cut to Neutral at Credit Suisse.
Intel Corporation (NASDAQ: INTC) Cut to Neutral at Stern Agee.
Kohl’s Corporation (NYSE: KSS) Cut to Hold at Argus.
SanDisk Corporation (NASDAQ: SNDK) Raised to Buy at Stern Agee.
TD AMERITRADE Holding Corporation (NASDAQ: AMTD) Raised to Buy at Deutsche Bank.
The Travelers Companies, Inc. (NYSE: TRV) Raised to Outperform at Wells Fargo.
United Parcel Service, Inc. (NYSE: UPS) Started as Market Perform at Wells Fargo.
Urban Outfitters Inc. (NASDAQ: URBN) Started as Underperform and named as Bear of the Day at Zacks.
Vodafone Group PLC (NYSE: VOD) Raised to Buy at Goldman Sachs.
Zhongpin, Inc. (NASDAQ: HOGS) Started as outperform at Oppenheimer.

If you enjoyed this morning’s Wall Street research notes, you can sign up to receive these directly in your inbox each morning by joining our free email list in the box below. We also include major movers, key stock calls, news on Warren Buffett and other gurus, as well as special exclusive feature stories.

Your email address

terms and conditions

JON C. OGG

Filed under: Analyst Calls Tagged: AGCO, AMTD, APOL, BSX, CECO, DNDN, FDX, GS, HOGS, HUN, INTC, ITW, KSS, SNDK, TRV, UPS, URBN, VOD

The Five Least Attractive DJIA Stocks (HD, MCD, TRV, VZ, WMT)

Administrator — Tue, 03 Jan 2012 22:26:11 +0000

Most investors are likely glad that 2012 is here to have 2011 behind them. This is an election year and many investors are wondering whether the U.S. and its large companies can escape the global headwinds. It turns out that if you take all of the consensus price targets from Wall Street analysts of the 30 Dow Jones Industrial Average stocks and then use an equal-weighting of the components, a consensus gain of almost 12% could be seen in 2012. That would put the DJIA at 13,678 and it would certainly please many investors.

The big question is whether or not the economy can hold up enough to support gains of that magnitude. China and India are both still soft, Europe is in crisis, corporate profits are slowing, and many are still very uncertain in the economy. The good side of the equation is that many corporations are still managing to grow their profits, companies are buying back stock, and they are still raising their dividends. After our peak forecast of 13,678 for the DJIA at some point in 2012, we just published the five DJIA stocks with the most implied upside but now we want to know which five of the thirty DJIA stocks may have the least appreciation opportunity for investors in 2012.

The least attractive stocks in the DJIA are The Home Depot, Inc. (NYSE: HD), McDonald’s Corporation (NYSE: MCD), The Travelers Companies, Inc. (NYSE: TRV), Verizon Communications Inc. (NYSE: VZ), and Wal-Mart Stores Inc. (NYSE: WMT). We took a look at the share prices with the expected move to the Thomson Reuters consensus data on each and added color and other data on each.

The Home Depot, Inc. (NYSE: HD) might seem like a no-brainer for limited upside when you consider the poor state of the housing market. Amazingly, this one was a major performing stock at the end of 2011 and the stock was up a massive 50% from its 52-week low. It is as if the market is trying to signal a major resurgence of home improvements ahead. At $42.04, the implied upside is only 1.2% if the consensus price target from analysts of $42.55 is all that the stock can rise to. Imagine if the company starts giving really good news again.

Read Also: The Highest Yielding DJIA Stocks, The Dogs of the Dow

McDonald’s Corporation (NYSE: MCD) was the top DJIA performing stock in 2011, so it should be no shock at all that there is little implied upside to the consensus analyst price target. At $100.33, the consensus upside is only about 3.1% to the target of $103.48. Its shares also just at the end of 2011 hit new all-time highs and media and market pundits expect strong performance ahead to remain. if so, then analysts will have to raise their price targets. It already yields close to 3% in dividends and its payout was recently raised.

The Travelers Companies, Inc. (NYSE: TRV) has been an anomaly for investors. While banks and many financial stocks have been in the gutter for 2011, it ended 2011 within just a few percent of a multi-year high. At $59.17, the Thomson Reuters consensus price target of $61.37 leaves only 3.7% implied upside and the 52-week trading range is $45.97 to $64.17. It does have a 2.8% yield. This is often considered the least visible of the thirty DJIA stocks, so maybe there is more to this story than what the analysts think.

Verizon Communications Inc. (NYSE: VZ) was the only one of the thirty DJIA stocks which ended up above its consensus price target objective. Shares closed at $40.12, about 2.5% above the Thomson Reuters target of $39.14. Still, the telecom giant has a massive 5% dividend yield and its shares just hit a 52-week at the end of last week.

Wal-Mart Stores Inc. (NYSE: WMT) is almost odd to see here because it was so unattractive for years. This time is has the least implied upside to its consensus price target from Thomson Reuters of $61.70 because its stock has been trying to make new multi-year highs. At $59.76, that leaves only about 3.2% implied upside, but it has a 2.4% dividend that should be raised very soon and its 52-week trading range is $$48.31 to $60.00. While it has a low dividend, this is actually a really high yield compared to most retail stocks. It will not be surprising if analysts start to see more upside by raising their price targets.

Before you run out thinking that all of the analysts will be right, consider how the game is played on Wall Street. As share prices rise, analysts tend to get more positive and tend to raise their price targets further. Conversely, they tend to lower expectations and price targets if share prices fall. It is just part of the game.

If the DJIA does somehow manage to hit that 12% gain to 13,678, it would seem very unlikely that these five get left in the dust.

JON C. OGG

Filed under: Analyst Calls, Corporate Governance, Economy, Index Tagged: HD, MCD, TRV, VZ, WMT