Stock Market

Note: The following is an excerpt from this week’s Earnings Trends  report. You can access the full report that contains detailed historical actual and estimates for the current and following periods,  please click here Here are the key points: •    With results from 171 SP 500 members already out, total earnings are up +8.8% from the same period last year on +3.4% higher revenues, with 78.9% beating EPS estimates and 70.8% beating revenue estimates. •    While growth is a bit on the lighter side relative to the preceding period for these 171 index members, the proportion of companies beating estimates, particularly revenue estimates, is notably tracking above other periods. •    The fact that companies are easily beating Q2 estimates even though estimates hadn’t fallen by that much ahead of the start of this earnings season, as had historically been the case, is a notable positive that needs to be acknowledged. •    For Q2 as a …

Hess Corporation ( HES ) is an integrated energy company engaged in oil and gas Exploration Production (“EP”) and refining as well as marketing. The company’s EP activities are concentrated in Algeria, Australia, Azerbaijan, Brazil, Denmark, Egypt, Equatorial Guinea, Gabon, Ghana, Indonesia, Libya, Malaysia, Norway, Russia, Thailand, the United Kingdom and the United States. Currently, Hess Corporation has a Zacks Rank #4 (Sell) but that could change following its second quarter 2017 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below: Hess Corporation Price and EPS Surprise Hess Corporation Price and EPS Surprise | Hess Corporation Quote Earnings : Hess Corporation loss wider than expected. Loss per share from continuing operations (excluding special items) came in at $1.46, wider than the Zacks Consensus Estimate of loss of $1.32 per share. Revenue : Revenues of $1,228 million came above the Zacks Consensus Estimate of $1,192 million. …

So far, it hasn’t been a very good year for real estate investment trusts (REITs). However, this isn’t to say these stocks have performed badly as a whole. So far this year, the Dow Jones Equity REIT Total Return Index is up about 3.8%. Even though it’s less than the return of the market — the SP 500 index is up more than 13% over the same period — these aren’t the numbers to really complain about. Especially in the context of this market environment. As we move a little more than six months into the year, the U.S. Federal Reserve has already hiked interest rates twice — something that many had anticipated would trigger a REIT sell-off. So, the good news is that the sector and its investors are taking the rate hikes in stride — so far, at least. But bad news is hiding in plain sight. The performance among REIT subsectors has …

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In trading on Tuesday, shares of Lennox International Inc (Symbol: LII) entered into oversold territory, hitting an RSI reading of 28.9, after changing hands as low as $171.325 per share. By comparison, the current RSI reading of the SP 500 ETF ( SPY ) is 67.3. A bullish investor could look at LII’s 28.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. …

BBT Corporation ( BBT ) declared a quarterly common stock cash dividend increase of $.03 to $.33 per share payable Sept. 1, 2017, to shareholders of record at the close of business Aug. 11, 2017. Comerica ( CMA ) declared a quarterly cash dividend for common stock of 30 cents per share, a 15 percent increase from the prior quarter. The 2017 third quarter dividend is payable October 1, 2017, to shareholders of record at the close of business on September 15, 2017. Hexcel Corporation ( HXL ) has approved a 13.6 percent increase in the Company’s quarterly cash dividend rate (from $0.11 to $0.125 per common share). The dividend declared today is payable on August 10, 2017 to stockholders of record as of August 3, 2017. The IBM ( IBM ) board of directors declared a regular quarterly cash dividend of $1.50 per common share, payable September 9, 2017 to stockholders of record August …

If you’re a growth investor, it’s time to get a lot more boring with your portfolio. Studies have shown that the real secret to beating the market isn’t growth stocks. Contrary to popular belief, the secret to outsized gains lies in dividends. The respected research firm Ned Davis conducted a study over more than four decades. Their research found that dividend-paying stocks tend to beat the market over the long term and yield far better returns than stocks that don’t pay dividends. The Ned Davis study showed that stocks in the SP 500 that didn’t pay dividends delivered a 2.5% annual return from 1972 through 2015. That would have turned a $1,000 investment into $2,910 over that timeframe. By comparison, dividend-paying stocks in the SP 500 returned 9% annually over the same period — also beating the SP 500’s 7.4% annual return. In this scenario, a 9% annual return over this period would have turned …

The chemical industry is back in business after being stuck in limbo for a spell, making it an attractive investment proposition. The industry’s upturn is expected to continue this year on continued momentum across major end-markets. Despite a few industry-related headwinds — weak demand across agricultural and energy markets and sluggishness in China — there are a number of reasons to be optimistic about the broader chemical industry for both the short and long haul. Let’s find out what’s supporting the bullish case for chemical stocks. Shale Bounty – Driving Force for Chemical Spending The shale gas revolution in the U.S. has been a huge driving force behind chemical investment on plants and equipment in the country. According to the American Chemistry Council (“ACC”), the U.S. has emerged as an attractive investment location and petrochemical makers are now significantly expanding capacity in the country, leveraging new supplies of natural gas. New methods of extraction such …

Investors continued to take off short USD/JPY positions ahead of Wednesday’s Federal Reserve announcement and given the positive momentum in the greenback, it may not take much for the gains to spillover to currencies that have resisted the dollar’s rise like euro, sterling and the Australian dollar.  With U.S. stocks climbing to fresh record highs, there’s very little reason for the Fed to change its tune.  Taking a look at the table below, even though there have countless negative surprises in U.S. data, the U.S. economy has still seen more improvement than deterioration since the last FOMC meeting.  Yet we can’t ignore the fact that inflation has fallen on a year over year basis as spending and wage growth remains weak.  So even if the Fed remains committed to normalizing monetary policy, investors will continue to doubt their optimism until there’s a consistent stream of positive data.  Today’s rally in the greenback is supported by …

Expected Earnings Release: 07/24/2017, After-hours Avg. Extended-Hours Dollar Volume: $1,363,962 Rambus Inc. ( RMBS ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect light trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in RMBS indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 50% Average next regular session additional gain: 0.6% Over the prior three fiscal years (12 quarters), when shares of RMBS rose in the extended-hours session in reaction to its earnings announcement, history shows that 50.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.6%. Last 12 Qtrs …

Expected Earnings Release: 07/24/2017, After-hours Avg. Extended-Hours Dollar Volume: $2,148,881 Sanmina Corporation ( SANM ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect light trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in SANM indicates that the price change in the extended hours is likely to be of significant value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 60% Average next regular session additional gain: 3.8% Over the prior three fiscal years (12 quarters), when shares of SANM rose in the extended-hours session in reaction to its earnings announcement, history shows that 60.0% of the time (3 events) the stock posted additional gains in the following regular session by an average of 3.8%. Last 12 Qtrs …

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