Hot Safest Stocks To Watch For 2019

tags:CIR,SUPV,AWR,ITOT, Gold doesn't trade in a vacuum.   Markets are connected. What happens in one often affects others.   So if you want to understand what's happening with gold, you need to know what's going on in the markets that affect gold.   And while lots of traders focus only on the short term, it's important to have a big-picture view, too. The big picture shows you the long-term trends at work... and when they change. It can help you find low-risk opportunities to open new positions. And it can help you determine where to set your stops.   Today, we'll look at the big picture for two markets that affect gold... along with gold itself.   Let's get started...   The first market we'll look at is U.S. government bonds... specifically, the yield on 10-year U.S. Treasurys. The U.S. government is considered the world's safest borrower. (It can print money to pay lenders back, after all.) The rate it pays to borrow money for 10 years serves as the world's benchmark interest rate.

Hot Safest Stocks To Watch For 2019: CIRCOR International, Inc.(CIR)

Advisors' Opinion:

• [By Max Byerly]

  CIRCOR International (NYSE: CIR) and ARC Group WorldWide (NASDAQ:ARCW) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

• [By Stephan Byrd]

  Get a free copy of the Zacks research report on CIRCOR International (CIR)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Stephan Byrd]

  Get a free copy of the Zacks research report on CIRCOR International (CIR)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Stephan Byrd]

  Peel Hunt reaffirmed their hold rating on shares of Circassia Pharmaceuticals (LON:CIR) in a report published on Thursday.

  A number of other research analysts have also recently commented on the company. Numis Securities decreased their price target on Circassia Pharmaceuticals from GBX 180 ($2.42) to GBX 140 ($1.88) and set a buy rating on the stock in a research report on Tuesday, April 24th. JPMorgan Chase & Co. restated a neutral rating on shares of Circassia Pharmaceuticals in a research report on Tuesday, April 24th.

Hot Safest Stocks To Watch For 2019: Grupo Supervielle S.A. (SUPV)

Advisors' Opinion:

• [By Logan Wallace]

  Mckinley Capital Management LLC Delaware lowered its holdings in Grupo Supervielle (NYSE:SUPV) by 19.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 33,744 shares of the company’s stock after selling 7,984 shares during the quarter. Mckinley Capital Management LLC Delaware’s holdings in Grupo Supervielle were worth $1,023,000 as of its most recent SEC filing.

• [By Logan Wallace]

  Credicorp (NYSE: BAP) and Grupo Supervielle (NYSE:SUPV) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

• [By Logan Wallace]

  Grupo Supervielle (NYSE:SUPV) shares dropped 4.7% on Monday . The company traded as low as $13.96 and last traded at $12.98. Approximately 30,924 shares were traded during trading, a decline of 97% from the average daily volume of 1,141,060 shares. The stock had previously closed at $13.62.

Hot Safest Stocks To Watch For 2019: American States Water Company(AWR)

Advisors' Opinion:

• [By Neha Chamaria]

  Contrary to what many believe, it's easier to find stocks to invest in when you're in your 60s. That's because your choices narrow down significantly as you filter out young, aggressive companies that typically carry higher risk. As you near retirement, you need a portfolio choc-a-block with mature, established businesses that have a visible growth path and preferably offer solid dividends to supplement your income. Three interesting stocks that fit the bill are American States Water (NYSE:AWR), A.O. Smith (NYSE:AOS), and Realty Income (NYSE:O).

• [By Reuben Gregg Brewer]

  American States Water Company (NYSE:AWR) has increased its dividend each and every year for 63 consecutive years. That's a feat unmatched by its water utility rivals, and most other companies for that matter. But that incredible run of dividend hikes doesn't mean that American States is a good investment. Here's the background you need in order to make a better call here.� �

• [By Neha Chamaria]

  In terms of dividend growth, only four of the above stocks -- 3M, Colgate-Palmolive, Coca-Cola, and Procter & Gamble -- feature among the 10 fastest dividend-growth kings. In other words, there are six other stocks from the dividend kings list that have grown their dividends at a faster pace than most stocks in the above table in the past decade, some even at double-digits.��

  Six top dividend kings by dividend growth Dividend King 10-Year Dividend CAGR Current Dividend Yield Payout Ratio (TTM) Lowe's Companies� 18.5% 2% 34.5% Hormel Foods� 16.3% 2.1% 39.2% Parker-Hannifin Corp�(NYSE:PH) 14% 1.7% 35.2% Nordson Corporation� 12.2% 0.9% 13.3% Dover Corp (NYSE:DOV) 9% 2% 37.4% American States Water�(NYSE:AWR) 7.6% 1.9% 54.8%

  TTM: Trailing 12 months. Data sources: YCharts and Yahoo! Finance. Table by author.

• [By Stephan Byrd]

  AWARE (CURRENCY:AWR) traded 3.3% lower against the U.S. dollar during the 24-hour period ending at 9:00 AM E.T. on June 5th. During the last week, AWARE has traded down 0.7% against the U.S. dollar. One AWARE token can now be bought for about $0.0294 or 0.00000396 BTC on major cryptocurrency exchanges including BigONE, Bibox and Allcoin. AWARE has a total market cap of $0.00 and $1.37 million worth of AWARE was traded on exchanges in the last 24 hours.

Hot Safest Stocks To Watch For 2019: iShares Core S&P Total US Stock Mkt (ITOT)

Advisors' Opinion:

• [By Todd Shriber, ETF Professor]

  Hundreds of exchange traded funds offer investors broad market exposure and many do so with nominal fees. Among the least expensive is the iShares Core S&P Total U.S. Stock Market ETF (NYSE: ITOT).

Top 10 Biotech Stocks To Buy For 2019

tags:ALNY,AMGN,BIIB,ARQL,

By Paul Lebo, CFA and Greg Wilkins

Athersys Inc.

Athersys Incorporated (Ticker: ATHX) is a biotechnology company that is focused primarily in the field of regenerative medicine and is committed to the discovery and development of best-in-class therapies designed to extend and enhance the quality of human life. ATHX has established a portfolio of therapeutic product development programs to address significant unmet medical needs in multiple disease areas. Their lead project that has the most potential is MultiStem cell therapy, a patented and proprietary allogeneic stem cell product, with several clinical stage programs. ATHX��s current clinical development programs are focused on treating neurological conditions, cardiovascular disease, inflammatory and immune disorders, certain pulmonary conditions and other conditions where the current standard of care is limited or inadequate for many patients. These represent major areas of clinical need, as well as substantial commercial opportunities and ATHX is pursuing opportunities in several potential multi-billion dollar markets.

Top 10 Biotech Stocks To Buy For 2019: Alnylam Pharmaceuticals Inc.(ALNY)

Advisors' Opinion:

• [By Brian Orelli]

  Alnylam Pharmaceuticals (NASDAQ:ALNY) released first-quarter results last week, but all eyes were looking forward as the company waits for a potential approval of its hereditary TTR amyloidosis (ATTR) drug, patisiran.

• [By Keith Speights]

  I wrote three months ago that I viewed Alnylam Pharmaceuticals (NASDAQ:ALNY) stock as a pretty good pick -- but with a couple of qualifications. First, I didn't think that the biotech would generate returns in 2018 nearly as great as it did last year. Second, I thought that there were even better stocks to buy than Alnylam.

• [By Max Byerly]

  Alnylam Pharmaceuticals (NASDAQ:ALNY) last issued its quarterly earnings results on Thursday, May 3rd. The biopharmaceutical company reported ($1.41) EPS for the quarter, topping analysts’ consensus estimates of ($1.47) by $0.06. The business had revenue of $21.90 million during the quarter, compared to analysts’ expectations of $35.23 million. Alnylam Pharmaceuticals had a negative return on equity of 36.81% and a negative net margin of 565.20%. The business’s quarterly revenue was up 15.3% on a year-over-year basis. During the same quarter in the prior year, the business posted ($1.25) earnings per share. equities analysts anticipate that Alnylam Pharmaceuticals, Inc. will post -6.7 earnings per share for the current fiscal year.

Top 10 Biotech Stocks To Buy For 2019: Amgen Inc.(AMGN)

Advisors' Opinion:

• [By Keith Speights]

  It's not too hard to find biotech stocks that are bargains right now. Two of the most attractively priced biotech stocks on the market are Amgen (NASDAQ:AMGN) and Gilead Sciences (NASDAQ:GILD). Both stocks also provide nice dividend yields for income-seeking investors.

• [By Jon C. Ogg]

  In September of 2016, Amgen Inc. (NASDAQ: AMGN) announced that the FDA had approved its Amjevita as a biosimilar to Humira for multiple inflammatory diseases that included RA and several other related inflammatory diseases.

• [By Chris Lange]

  Amgen Inc. (NASDAQ: AMGN) shares made a slight gain on Tuesday after it was announced that the U.S. Food and Drug Administration (FDA) approved its treatment of glucocorticoid-induced osteoporosis in men and women at high risk of fracture. Specifically, the agency approved Prolia (denosumab), driven by positive late-stage results.

Top 10 Biotech Stocks To Buy For 2019: Biogen Idec Inc(BIIB)

Advisors' Opinion:

• [By Brian Orelli]

  Data source: Ionis Pharmaceuticals.

  What happened with Ionis Pharmaceuticals this quarter? Revenue increased thanks to $41 million in royalties from Biogen's (NASDAQ:BIIB) sales of Spinraza, up from just $5 million in the year-ago quarter. Because the tiered royalty rates reset each year, the royalties as a percentage of sales will end up being higher in the quarters to come this year. Despite the higher revenue, earnings turned negative on a GAAP (generally accepted accounting principles) basis: Ionis and Akcea Therapeutics (NASDAQ:AKCA) increased spending in preparation for the launch of Tegsedi for hereditary transthyretin amyloidosis (hATTR), and Waylivra for familial chylomicronemia syndrome, a rare disease that causes the buildup of lipids. Ionis is still the majority owner of Akcea, so its financials are incorporated into Ionis' financials. The Food and Drug Administration pushed back its goal for making a decision on the marketing application for Tegsedi (the new brand name for inotersen) to Oct. 6, 2018. Ionis provided additional data analysis that the FDA needs additional time to review. In April, Ionis signed another deal with Biogen to develop antisense drugs for neurological disorders. In the deal, Ionis gets $1 billion up front, including an equity investment, in exchange for Biogen having first choice of neurology targets on which to exclusively collaborate with Ionis. Biogen is paying for everything beyond the initial discovery stage, with Ionis eligible for royalties and milestone payments as the drugs advance.

  Image source: Getty Images.

• [By Brian Orelli]

  Drug-developer Biogen (NASDAQ:BIIB) reported a pretty strong earnings�increase in the first quarter. While revenue growth wasn't as solid, investors appear to be giving management a pass, thanks to its explanations on why slowing first-quarter sales aren't a sign of future trouble.

• [By Lisa Levin] Companies Reporting Before The Bell United Technologies Corporation (NYSE: UTX) is estimated to report quarterly earnings at $1.51 per share on revenue of $14.62 billion. The Coca-Cola Company (NYSE: KO) is expected to report quarterly earnings at $0.46 per share on revenue of $7.31 billion. Caterpillar Inc. (NYSE: CAT) is projected to report quarterly earnings at $2.07 per share on revenue of $11.93 billion. Verizon Communications Inc. (NYSE: VZ) is expected to report quarterly earnings at $1.11 per share on revenue of $31.22 billion. Lockheed Martin Corporation (NYSE: LMT) is estimated to report quarterly earnings at $3.42 per share on revenue of $11.28 billion. The Sherwin-Williams Company (NYSE: SHW) is projected to report quarterly earnings at $3.15 per share on revenue of $3.94 billion. Biogen Inc. (NASDAQ: BIIB) is expected to report quarterly earnings at $5.92 per share on revenue of $3.15 billion. 3M Company (NYSE: MMM) is estimated to report quarterly earnings at $2.52 per share on revenue of $8.26 billion. JetBlue Airways Corporation (NASDAQ: JBLU) is projected to report quarterly earnings at $0.2 per share on revenue of $1.75 billion. Eli Lilly and Company (NYSE: LLY) is expected to report quarterly earnings at $1.13 per share on revenue of $5.49 billion. Harley-Davidson, Inc. (NYSE: HOG) is estimated to report quarterly earnings at $0.88 per share on revenue of $1.25 billion. Corning Incorporated (NYSE: GLW) is expected to report quarterly earnings at $0.3 per share on revenue of $2.50 billion. Centene Corporation (NYSE: CNC) is projected to report quarterly earnings at $1.88 per share on revenue of $13.28 billion. The Travelers Companies, Inc. (NYSE: TRV) is estimated to report quarterly earnings at $2.77 per share on revenue of $6.75 billion. Wipro Limited (NYSE: WIT) is expected to report quarterly earnings at $0.07 per share on revenue of $2.16 billion. PACCAR Inc (NASDAQ: PCAR) is projected to
• [By Dan Caplinger]

  Wall Street continued its downward streak on Monday, with the Dow Jones Industrial Average falling more than 100 points. Most major benchmarks fell more modestly, with a few actually poking into positive territory on the day. Trade-sensitive stocks were among the weakest as investors focused on uncertainty related to tariff disputes between the U.S. and China. But for some other companies, bad news of a different sort was responsible for the drops in their shares. Biogen (NASDAQ:BIIB), Baytex Energy (NYSE:BTE), and Catalyst Biosciences (NASDAQ:CBIO) were among the worst performers on the day. Here's why they did so poorly.

• [By Todd Campbell]

  Unfortunately for investors, June's discovery wasn't exciting enough for Sangamo partners Biogen (NASDAQ:BIIB) and Shire (NASDAQ:SHPG). In 2015, Biogen announced a delay to its beta-thalassemia and sickle-cell disease treatment program with Sangamo. And then Shire, a Sangamo collaboration partner since 2012, walked away from Sangamo's hemophilia program.

Top 10 Biotech Stocks To Buy For 2019: ArQule Inc.(ARQL)

Advisors' Opinion:

• [By Ethan Ryder]

  ArQule, Inc. (NASDAQ:ARQL) insider Value Fund L. P. Biotechnology sold 1,035,939 shares of the business’s stock in a transaction dated Wednesday, May 30th. The shares were sold at an average price of $5.00, for a total value of $5,179,695.00. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on ArQule (ARQL)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Maxx Chatsko]

  Shares of development-stage biopharma ArQule (NASDAQ:ARQL) rose nearly 17% today after the company announced two appointments to its management team in two newly created positions. Dr. Marc Schegerin will serve as senior vice president, corporate strategy, communication, and finance. Dr. Shirish Hirani will serve as senior vice president, program management and product planning.�

• [By Logan Wallace]

  BidaskClub upgraded shares of ArQule (NASDAQ:ARQL) from a hold rating to a buy rating in a report released on Saturday.

  A number of other research firms have also issued reports on ARQL. Roth Capital upped their price target on ArQule from $5.00 to $6.00 and gave the company a buy rating in a research report on Tuesday, April 17th. Leerink Swann upgraded ArQule from a market perform rating to an outperform rating in a research report on Thursday, April 5th. Zacks Investment Research lowered ArQule from a buy rating to a hold rating in a research report on Wednesday, April 4th. ValuEngine upgraded ArQule from a hold rating to a buy rating in a research report on Wednesday, May 2nd. Finally, B. Riley set a $4.00 price target on ArQule and gave the company a buy rating in a research report on Monday, March 26th. Seven analysts have rated the stock with a buy rating, The stock currently has an average rating of Buy and an average target price of $4.69.

IOCL Q1 PAT seen up 23.2% YoY to Rs. 5,604.8 cr: KR Choksey

KR Choksey has come out with its first quarter (April-June�� 18) earnings estimates for the Oil & Gas sector. The brokerage house expects IOCL to report net profit at Rs. 5,604.8 crore up 23.2% year-on-year (up 7.2% quarter-on-quarter).

Net Sales are expected to increase by 30.3 percent Y-o-Y (up 17 percent Q-o-Q) to Rs. 137,329.5 crore, according to KR Choksey.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 35.2 percent Y-o-Y (down 1.9 percent Q-o-Q) to Rs. 10,815.9 crore.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More First Published on Jul 22, 2018 07:05 pm

Intuitive Surgical (ISRG) Announces Quarterly Earnings Results, Beats Estimates By $0.28 EPS

Intuitive Surgical (NASDAQ:ISRG) announced its quarterly earnings results on Wednesday. The medical equipment provider reported $2.76 earnings per share for the quarter, beating the consensus estimate of $2.48 by $0.28, Bloomberg Earnings reports. The company had revenue of $909.30 million during the quarter, compared to analysts’ expectations of $877.43 million. Intuitive Surgical had a return on equity of 20.72% and a net margin of 23.25%. Intuitive Surgical’s quarterly revenue was up 19.8% on a year-over-year basis. During the same period last year, the business earned $5.95 earnings per share.

Shares of Intuitive Surgical traded down $6.62, reaching $521.29, on Thursday, MarketBeat Ratings reports. The company’s stock had a trading volume of 1,011,600 shares, compared to its average volume of 844,149. The stock has a market capitalization of $59.34 billion, a PE ratio of 75.20, a price-to-earnings-growth ratio of 4.65 and a beta of 0.58. Intuitive Surgical has a 52-week low of $307.00 and a 52-week high of $532.30.

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In other news, EVP David J. Rosa sold 54,000 shares of the business’s stock in a transaction that occurred on Friday, April 20th. The stock was sold at an average price of $457.02, for a total value of $24,679,080.00. Following the completion of the sale, the executive vice president now directly owns 65,141 shares in the company, valued at $29,770,739.82. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Mark J. Meltzer sold 6,000 shares of the business’s stock in a transaction that occurred on Thursday, June 7th. The shares were sold at an average price of $483.65, for a total value of $2,901,900.00. Following the completion of the sale, the senior vice president now owns 11,552 shares of the company’s stock, valued at $5,587,124.80. The disclosure for this sale can be found here. Insiders sold 170,767 shares of company stock valued at $77,995,219 over the last 90 days. Company insiders own 2.20% of the company’s stock.

ISRG has been the subject of several recent research reports. Bank of America lifted their price target on Intuitive Surgical from $465.00 to $510.00 and gave the company a “buy” rating in a research report on Wednesday, April 18th. Vetr cut Intuitive Surgical from a “strong-buy” rating to a “buy” rating and set a $454.14 price target for the company. in a research report on Tuesday, April 10th. Leerink Swann reiterated an “outperform” rating and set a $510.00 price target (up from $475.00) on shares of Intuitive Surgical in a research report on Wednesday, April 18th. Cantor Fitzgerald lifted their price target on Intuitive Surgical to $510.00 and gave the company an “overweight” rating in a research report on Wednesday, April 18th. Finally, Sanford C. Bernstein initiated coverage on Intuitive Surgical in a research report on Wednesday, June 27th. They set an “outperform” rating and a $560.00 price target for the company. Five analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company. The stock has an average rating of “Buy” and an average target price of $476.97.

Intuitive Surgical Company Profile

Intuitive Surgical, Inc designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. The company's da Vinci surgical System translates a surgeon's natural hand movements, which are performed on instrument controls at a console into corresponding micro-movements of instruments positioned inside the patient through small incisions or ports.

Further Reading: Closed-End Mutual Funds (CEFs)

Shares of Cleveland-Cliffs Inc. Pop 10% as Second-Quarter Earnings Surge

What happened?

Shares of Cleveland-Cliffs Inc. (NYSE:CLF), the largest and oldest iron-ore mining company in the U.S., were up 10% as of 3:14 p.m. EDT Friday after the company announced better than expected second-quarter results.

So what

The company reported consolidated revenues of $714 million, significantly better than the prior year's $471 million, and higher than analysts' estimates of $692.2 million, per analysts surveyed by investment research firm Zacks. Income from continuing operations jumped to $229 million, or $0.76 per diluted share, which was again a large improvement from the prior year's $84 million, or $0.28 per share, and well ahead of analysts' estimates calling for $0.56 per share, per Zacks. Another bright spot was a 16% increase in its U.S. iron-ore realized revenue rate.

Image source: Getty Images.

President and CEO Lourenco Goncalves said in a press release: "Our second quarter is a definitive statement about the new Cliffs and our earnings power. After almost four years of consistent execution of a well-designed and thoroughly implemented strategy, our company has become a very powerful cash-generating enterprise."

Now what

It's understandable that investors pushed the stock higher today. The second-quarter surge in earnings reflects an end, or near-end, to its multiyear transformation to get back to its roots as a supplier of high-grade iron units. Now that the company is focused on its roots, it expects to generate cash this year at a level it hasn't seen in years, and for that strong momentum to continue into 2019. Business is looking good, and today's 10% jump means investors are buying into its future potential.

Analysts Set Shire PLC (SHPG) Target Price at $208.89

Shares of Shire PLC (NASDAQ:SHPG) have earned an average recommendation of “Buy” from the twenty brokerages that are currently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation and twelve have given a buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $208.89.

Several equities research analysts recently issued reports on SHPG shares. Zacks Investment Research upgraded Shire from a “sell” rating to a “hold” rating in a report on Friday, March 23rd. Cantor Fitzgerald set a $222.00 price target on Shire and gave the stock a “buy” rating in a report on Wednesday, March 28th. Bank of America reiterated a “buy” rating on shares of Shire in a report on Wednesday, March 28th. BidaskClub upgraded Shire from a “sell” rating to a “hold” rating in a report on Friday, March 30th. Finally, B. Riley upped their price target on Shire to $200.00 and gave the stock a “buy” rating in a report on Thursday, April 19th.

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Hedge funds have recently bought and sold shares of the business. Raymond James & Associates boosted its position in Shire by 15.5% in the fourth quarter. Raymond James & Associates now owns 101,051 shares of the biopharmaceutical company’s stock worth $15,675,000 after purchasing an additional 13,567 shares during the last quarter. Rockefeller Capital Management L.P. purchased a new position in Shire in the first quarter worth $113,097,000. Sawtooth Solutions LLC purchased a new position in Shire in the fourth quarter worth $200,000. Palo Alto Investors LLC boosted its position in Shire by 4.3% in the fourth quarter. Palo Alto Investors LLC now owns 135,800 shares of the biopharmaceutical company’s stock worth $21,065,000 after purchasing an additional 5,600 shares during the last quarter. Finally, OLD Mission Capital LLC purchased a new position in Shire in the fourth quarter worth $18,368,000. 17.92% of the stock is currently owned by institutional investors and hedge funds.

Shire traded down $0.82, hitting $172.06, during trading on Monday, Marketbeat.com reports. 489,507 shares of the company were exchanged, compared to its average volume of 1,362,866. Shire has a 52 week low of $123.73 and a 52 week high of $177.51. The company has a market capitalization of $52.55 billion, a P/E ratio of 11.36, a price-to-earnings-growth ratio of 1.43 and a beta of 1.28. The company has a current ratio of 1.14, a quick ratio of 0.66 and a debt-to-equity ratio of 0.45.

Shire (NASDAQ:SHPG) last announced its quarterly earnings results on Thursday, April 26th. The biopharmaceutical company reported $3.86 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $3.58 by $0.28. Shire had a return on equity of 13.60% and a net margin of 28.96%. The business had revenue of $3.77 billion during the quarter. During the same quarter last year, the company posted $3.63 EPS. The company’s quarterly revenue was up 5.4% compared to the same quarter last year. analysts predict that Shire will post 15.27 EPS for the current year.

Shire Company Profile

Shire plc, a biotechnology company, researches, develops, licenses, manufactures, markets, distributes, and sells medicines for rare diseases and other specialized conditions worldwide. The company offers products in therapeutic areas, including hematology, genetic diseases, neuroscience, immunology, internal medicine, ophthalmology, and oncology.

Recommended Story: What kind of dividend yield to CEF’s pay?

3 Reasons to Buy United Technologies Stock

United Technologies' (NYSE:UTX) execution hasn't been flawless in the last few years, but that doesn't seem to worry leading hedge fund managers Dan Loeb and Bill Ackman. Apparently they see a value opportunity, enough to cause them to take large positions in the stock. Actually, there are three key reasons to own the stock, and they all directly relate to valuation. Let's take a look at them.

United Technologies stock offers compelling value. Image source: Getty Images.

Valuation-based arguments for owning United Technologies stock

The key points:

The stock trades at a discount to its peers, including poorly performing General Electric�(NYSE:GE) as well as outperforming companies like�Honeywell International (NYSE:HON). The company is going through a period of suppressed earnings due to transitioning several businesses toward long-term earnings growth -- it should trade at an earnings premium rather than a discount. Management is actively looking at breaking up the company, and there's significant value to be released if it does so. Discount to peers

Looking across its industrial conglomerate peers, it's clear the stock trades at discount on an EV-to-EBITDA -- enterprise value (market cap plus net debt) to earnings before interest, tax, depreciation and amortization -- basis. (EV-to-EBITDA is a very commonly used measure that helps compare companies with different debt loads.)

UTX EV to EBITDA (Forward) data by YCharts.

On the downside, United Technologies continues to face headwinds from issues as diverse as China's construction markets (in its Otis segment), technical difficulties and production ramp-ups on its geared turbofan aircraft engine (Pratt & Whitney), and raw material cost increases (UTC Climate, Controls & Security, or CCS). Furthermore,�Boeing continues to pressure suppliers (affecting UTC Aerospace Systems, or UTAS).�

However, not every industrial conglomerate is going to have all of its segments firing on all cylinders at all times. Unlike General Electric, United Technologies isn't facing cash flow issues or structural decline in its core segment (GE power). Furthermore, GE missed its production target on the LEAP engine (produced as part of a joint venture with Safran) in the first quarter.�

Honeywell's aerospace operations also face pressure from Boeing. Honeywell was forced to grant significant incentives to original equipment (OE) manufacturers in 2016 and 2017 in order to be on new aircraft programs, and a slowdown in construction in China would also hurt Honeywell.

All told, does United Technologies really deserve to trade at such an obvious discount to its conglomerate peers?

Position in its business cycle

United Technologies is positioning itself for long-term growth, but three of its four segments are suffering near-term headwinds as a consequence. Otis has been more price-competitive in order to win market share in the elevator equipment market in China, in turn generating more profitable long-term services revenue growth.

Meanwhile, Pratt & Whitney is ramping up production of its geared turbofan engine with a view to maximizing long-term aftermarket and service revenues, while UTAS' commercial OE sales have been weak as the company transitions from selling equipment on legacy aircraft toward newer aircraft from Boeing and Airbus.�

All of these things are holding back near-term earnings, but analysts are seeing EPS growth moving from zero in 2017 to single digits in 2018, and then double digits in 2019. Given that the best is yet to come for United Technologies, it should arguably trade at a premium.

Breakup value

While the stock is perhaps a good value in any case, there's also some significant upside from a possible breakup of the company. Hedge fund managers Loeb and Ackman may have grabbed the headlines with calls to separate the company into three different parts -- CCS, Otis, and an aerospace company comprising UTAS, Pratt & Whitney, and the soon to be acquired Rockwell Collins�-- but the reality is,�CEO Greg Hayes has already told investors that he's considering doing it.�

United Technologies won't move until the Rockwell Collins deal is completed -- hopefully by the summer --�but don't be surprised if Hayes announces a breakup after this.

The case for splitting up is based on the idea that each separate part of the company trades at a discount to its specific competitor. Moreover, there is little overlap between, say, Pratt & Whitney's aircraft engines and Otis' elevators or CCS' air conditioners, so breaking up the company shouldn't create dis-synergies.�

Meanwhile, the challenges created by Boeing on its suppliers mean that a combined United Technologies aerospace segment would receive the management focus and investment it might lack as part of a conglomerate.

The key takeaway

Investing in United Technologies offers a value proposition with a kicker from the potential for a breakup. General Electric and Honeywell have both won plaudits for their plans to sell and spin off businesses in 2018, and a similar move by Hayes would likely be rewarded, too.

If Hayes and the board elect to split up the company, then shareholders can expect its constituent parts to start closing the valuation gap between each business and its peers. That would be good news for investors.

Analysts Expect PBF Energy Inc (PBF) Will Post Earnings of $1.41 Per Share

Wall Street analysts forecast that PBF Energy Inc (NYSE:PBF) will report earnings per share (EPS) of $1.41 for the current fiscal quarter, according to Zacks. Five analysts have made estimates for PBF Energy’s earnings, with estimates ranging from $0.99 to $2.09. PBF Energy posted earnings per share of ($0.06) in the same quarter last year, which indicates a positive year-over-year growth rate of 2,450%. The business is expected to report its next earnings results before the market opens on Thursday, August 2nd.

On average, analysts expect that PBF Energy will report full year earnings of $3.60 per share for the current fiscal year, with EPS estimates ranging from $2.41 to $5.86. For the next financial year, analysts expect that the company will report earnings of $5.01 per share, with EPS estimates ranging from $3.54 to $8.14. Zacks’ earnings per share calculations are a mean average based on a survey of research firms that that provide coverage for PBF Energy.

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PBF Energy (NYSE:PBF) last posted its earnings results on Thursday, May 3rd. The oil and gas company reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.19) by ($0.10). The firm had revenue of $5.80 billion during the quarter, compared to the consensus estimate of $5.43 billion. PBF Energy had a return on equity of 4.39% and a net margin of 2.09%. PBF Energy’s revenue for the quarter was up 22.0% on a year-over-year basis. During the same quarter last year, the company posted ($0.20) EPS.

A number of brokerages have recently weighed in on PBF. ValuEngine lowered shares of PBF Energy from a “strong-buy” rating to a “buy” rating in a research note on Monday, July 2nd. Macquarie raised shares of PBF Energy from a “neutral” rating to an “outperform” rating in a research note on Monday. Scotiabank reaffirmed a “sector perform” rating on shares of PBF Energy in a research note on Thursday, April 12th. Citigroup lowered shares of PBF Energy from a “buy” rating to a “neutral” rating and set a $37.00 price target for the company. in a research note on Wednesday, April 18th. They noted that the move was a valuation call. Finally, Morgan Stanley upped their price target on shares of PBF Energy from $37.00 to $38.00 and gave the stock a “sell” rating in a research note on Monday, April 16th. Four analysts have rated the stock with a sell rating, ten have issued a hold rating and five have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average price target of $38.00.

A number of hedge funds have recently added to or reduced their stakes in the stock. Polianta Ltd acquired a new stake in PBF Energy during the second quarter valued at approximately $1,127,000. Empowered Funds LLC acquired a new stake in PBF Energy during the second quarter valued at approximately $1,434,000. Clinton Group Inc. acquired a new stake in PBF Energy during the second quarter valued at approximately $1,095,000. Dorsey Wright & Associates acquired a new stake in PBF Energy during the second quarter valued at approximately $614,000. Finally, Cerebellum GP LLC acquired a new stake in PBF Energy during the second quarter valued at approximately $175,000. 95.07% of the stock is owned by institutional investors and hedge funds.

Shares of NYSE:PBF traded up $0.40 during trading on Thursday, reaching $44.14. The company had a trading volume of 72,289 shares, compared to its average volume of 2,172,990. The firm has a market cap of $4.76 billion, a P/E ratio of 38.37, a P/E/G ratio of 1.18 and a beta of 1.22. PBF Energy has a twelve month low of $19.46 and a twelve month high of $50.99. The company has a current ratio of 1.50, a quick ratio of 0.50 and a debt-to-equity ratio of 0.74.

About PBF Energy

PBF Energy Inc, together with its subsidiaries, engages in the refining and supply of petroleum products. The company operates through two segments, Refining and Logistics. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products.

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Wade G W & Inc. Sells 13,156 Shares of Procter & Gamble Co (PG)

Wade G W & Inc. trimmed its holdings in shares of Procter & Gamble Co (NYSE:PG) by 6.6% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 185,684 shares of the company’s stock after selling 13,156 shares during the period. Procter & Gamble accounts for about 1.7% of Wade G W & Inc.’s investment portfolio, making the stock its 14th biggest holding. Wade G W & Inc.’s holdings in Procter & Gamble were worth $14,721,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of PG. Signature Estate & Investment Advisors LLC bought a new stake in Procter & Gamble in the fourth quarter valued at approximately $103,000. Cerebellum GP LLC bought a new stake in Procter & Gamble in the fourth quarter valued at approximately $122,000. James Investment Research Inc. increased its stake in Procter & Gamble by 400.0% in the fourth quarter. James Investment Research Inc. now owns 1,500 shares of the company’s stock valued at $138,000 after purchasing an additional 1,200 shares in the last quarter. Lenox Wealth Advisors Inc. increased its stake in Procter & Gamble by 140.5% in the fourth quarter. Lenox Wealth Advisors Inc. now owns 1,621 shares of the company’s stock valued at $149,000 after purchasing an additional 947 shares in the last quarter. Finally, Financial Gravity Companies Inc. bought a new stake in Procter & Gamble in the fourth quarter valued at approximately $171,000. 59.39% of the stock is owned by institutional investors and hedge funds.

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In related news, insider Gary A. Coombe sold 1,529 shares of the stock in a transaction on Monday, June 4th. The shares were sold at an average price of $74.25, for a total transaction of $113,528.25. Following the completion of the transaction, the insider now owns 5,235 shares in the company, valued at $388,698.75. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Steven D. Bishop sold 2,075 shares of the stock in a transaction on Wednesday, May 2nd. The stock was sold at an average price of $71.87, for a total transaction of $149,130.25. Following the transaction, the insider now owns 42,524 shares of the company’s stock, valued at approximately $3,056,199.88. The disclosure for this sale can be found here. Insiders have sold 20,938 shares of company stock valued at $1,604,483 in the last 90 days. 0.35% of the stock is currently owned by corporate insiders.

PG has been the subject of several recent analyst reports. Bank of America reaffirmed a “neutral” rating and issued a $90.00 target price on shares of Procter & Gamble in a research note on Thursday, April 19th. Morgan Stanley lowered their target price on shares of Procter & Gamble from $92.00 to $85.00 and set an “equal weight” rating for the company in a research note on Thursday, April 5th. Zacks Investment Research raised shares of Procter & Gamble from a “hold” rating to a “buy” rating and set a $86.00 target price for the company in a research note on Tuesday, March 27th. SunTrust Banks reaffirmed a “hold” rating and issued a $75.00 target price on shares of Procter & Gamble in a research note on Friday, April 20th. Finally, Jefferies Financial Group reissued a “buy” rating and set a $90.00 price objective on shares of Procter & Gamble in a research report on Thursday, April 19th. Three equities research analysts have rated the stock with a sell rating, ten have given a hold rating, five have given a buy rating and one has given a strong buy rating to the company. Procter & Gamble presently has a consensus rating of “Hold” and an average price target of $87.90.

Shares of PG stock opened at $79.31 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.91 and a debt-to-equity ratio of 0.42. Procter & Gamble Co has a 12-month low of $70.73 and a 12-month high of $94.67. The firm has a market cap of $196.39 billion, a PE ratio of 20.23, a P/E/G ratio of 2.44 and a beta of 0.58.

Procter & Gamble (NYSE:PG) last issued its quarterly earnings data on Thursday, April 19th. The company reported $1.00 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.98 by $0.02. Procter & Gamble had a net margin of 15.17% and a return on equity of 20.72%. The company had revenue of $16.28 billion during the quarter, compared to the consensus estimate of $16.22 billion. During the same quarter in the prior year, the firm earned $0.96 earnings per share. The firm’s revenue was up 4.3% compared to the same quarter last year. research analysts anticipate that Procter & Gamble Co will post 4.19 EPS for the current fiscal year.

About Procter & Gamble

The Procter & Gamble Company provides branded consumer packaged goods to consumers in the United States, Canada, Puerto Rico, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. The company's Beauty segment offers hair care products, including conditioners, shampoos, styling aids, and treatments; and skin and personal care products, such as antiperspirant and deodorant, personal cleansing, and skin care products.

Want to see what other hedge funds are holding PG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Procter & Gamble Co (NYSE:PG).

UK offers new 'business-friendly' plan for Brexit

British Prime Minister Theresa May and her government have agreed a "business-friendly" plan for Brexit.

Announced at the end of a crucial summit on Friday, the proposal seeks to preserve frictionless goods trade with the European Union, and avoid the border checks and tariffs most feared by manufacturing companies.

In a statement, May said she would present the proposal to EU officials quickly. Both sides want a deal by October, before Britain leaves the European Union in March, 2019.

Despite the show of government unity on Friday, the plan is likely to anger members of May's party who favor a clean break with the European Union. But it will be welcomed by companies in Britain and around the world.

May's plan calls for the United Kingdom and the European Union to establish a free trade area that would allow goods and agricultural products to move across borders without delays.

In return for unfettered access to its biggest export market, the United Kingdom would commit to following EU rules and regulations on goods. It would also accept a limited role for bloc's top court.

The UK government said the proposal marks a "substantial evolution" in its negotiating position, and it includes concessions that would maintain closer ties with the European Union than May had previously sought.

UK, European and Japanese businesses have long complained about uncertainty over the UK government's plans. With just nine months to go until Brexit, their growing anxiety was reflected in a series of increasingly insistent warnings in recent days.

Jaguar Land Rover, Britain's biggest carmaker with 40,000 employees, cautioned this week that a bad deal would slash its profits by 拢1.2 billion ($1.6 billion) a year. Airbus (EADSF) and BMW (BMWYY) also issued dire warnings.

The plan announced Friday acknowledges that banking and other UK service industries, which make up the vast majority of the UK economy, would lose some access to European markets.

But Britain's biggest business lobby group, the Confederation of British Industry, welcomed Friday's announcement as a "good starting point."

"This is a genuine confidence boost and the prime minister deserves credit for delivering a unified approach" said Carolyn Fairbairn, CBI director general, in a statement.

Yet elements of the plan are likely to be unacceptable to the European Union.

The world's biggest trading bloc only grants unfettered market access to countries where all its citizens have the right to live and work. May wants to end this freedom of movement, replacing it with a vague "mobility framework."

The UK government plan also calls for a future customs arrangement under which Britain would collect EU tariffs on goods bound for the bloc.

Doing so would allow the United Kingdom to set its own tariff rates, and negotiate its own trade deals. Such a proposal would almost certainly be rejected by the European Union.

"I'm afraid this is nonsensical fudge from the UK Government," said David Henig, a former UK trade negotiator and director of the European Centre for International Political Economy. "Essentially they've changed the language from earlier, but not the approach."

Still, the plan could help move negotiations forward.

"It has taken two years for the UK to agree its position; we now have two months to agree it with Europe," said Fairbairn.

What Happened in the Stock Market Today

A positive jobs report overcame investor concerns about trade on Friday, and the�Dow Jones Industrial Average (DJINDICES:^DJI)�and the�S&P 500 (SNPINDEX:^GSPC)�closed the day and the week in the green.

Today's stock market Index Percentage Change Point Change

Dow	0.41%	99.74
S&P 500	0.85%	23.21

Data source: Yahoo! Finance.

Biotech shares soared on good news from clinical trials; the�iShares NASDAQ Biotechnology ETF (NASDAQ:IBB) gained 3.8%.�The tech sector also had a big day, with the�Technology Select Sector SPDR ETF (NYSEMKT:XLK) jumping 1.2%.

As for individual stocks, Biogen (NASDAQ:BIIB) made headlines with positive results from a trial of an Alzheimer's drug, and PriceSmart (NASDAQ:PSMT) fell after reporting earnings.

Image source: Getty Images.

Encouraging Alzheimer's trial boosts Biogen

Shares of Biogen soared 19.6% after the company announced�results from a midstage�clinical trial�that showed one of its Alzheimer's drug candidates slowed progression of the disease.

The phase 2 trial of BAN2401,�an anti-amyloid beta protofibril antibody that Biogen is developing along with its Japanese partner Eisai, tested the various doses of the drug against a placebo in 856 patients with early Alzheimer's disease. At the highest dose level, the drug met the trial's primary endpoint of change in a composite score that measures the clinical symptoms of the disease. The study also showed a statistically significant reduction of amyloid levels in the brains of test subjects.

"The prospect of being able to offer meaningful disease-modifying therapies to individuals suffering from this terrible disease is both exciting and humbling," said Chief Medical Officer Alfred Sandrock, M.D., Ph.D. "These BAN2401 18-month data offer important insights in the investigation of potential treatment options for patients with Alzheimer's disease and underscores that neurodegenerative diseases may not be as intractable as they once seemed."

Some doubt was cast on the drug's prospects last December when Biogen and Eisai announced that the criteria for success had not yet been met at the 12-month mark. Now the companies say that BAN2401 "began" to show statistically significant clinical benefit�as early as six months, including at 12 months.

Numerous trial failures for drugs targeting Alzheimer's have highlighted the difficulty in finding treatments for the disease. But Biogen has six drugs in development for Alzheimer's, including two in later, phase 3 trials, so today's results have investors encouraged about the company's chances to score a big commercial win in the space, despite the fact that the drug is still a long way from commercialization.

PriceSmart misses profit expectations

PriceSmart, an operator of wholesale club stores in Latin America and the Caribbean, announced fiscal third-quarter results�that didn't meet up with analyst expectations, and the stock fell 10.7%. Revenue increased 7.1% to $782 million and earnings per share fell $0.01 to $0.61. The stock is not closely followed on Wall Street, but the three analysts who cover it expected the company to earn $0.74 on revenue of $784 million.

Net merchandise sales growth was 5.6% and comparable-store sales increased 2.7%. Comparable sales in Central America, the company's biggest region, fell 1%, which the company attributed to a new warehouse store opening that siphoned off some sales from existing stores nearby. Comps in the Caribbean increased 4.5% and in Colombia soared 17.9%. Income from membership fees jumped 6.8%.�

Gross margin as a percentage of total revenue increased to 16.6% from 15.4% in the period a year earlier. Operating income grew 2.9% to $28.4 million. Profit in the quarter was hurt by an $8 million expense related to the acquisition of Aeropost,�a cross-border logistics and e-commerce provider that PriceSmart bought in March.

PriceSmart, founded by the same father-and-son team that founded Price Club and later merged with Costco Wholesale,�is building a similar member-based warehouse chain in Latin America and the Caribbean.

Dow shakes off trade-war angst to end 180 points higher after Fed minutes, ahead of jobs report

U.S. stocks finished Thursday's trade solidly higher--a day after the Fourth of July break--as investors appeared to dismiss worries about an impending deadline on trade between the U.S. and China, and the release of minutes from the Federal Reserve that acknowledged the potential for tariff disputes to harm domestic economic expansion. The Dow Jones Industrial Average DJIA, +0.75% closed up about 180 points, or 0.8%, at 24,356(on a preliminary basis), the S&P 500 index SPX, +0.86% rose by 0.9% at 2,737, powered by gains in technology XLK, +1.41% health-care XLV, +1.04% and consumer-staples XLP, +1.38% shares of at least 1%. Meanwhile, the Nasdaq Composite Index COMP, +1.12% finished up about 1.1% at 7,586. An account of the June meeting from the policy-setting Federal Open Market Committee's two-day convention ended June 13 pointed to unease over trade clashes that could hold back economic growth but not sufficiently to prevent the Fed from hiking benchmark interest rates. The central bank raised rates by a quarter of a percentage point last month to a range between 1.75% and 2% and indicated that a further two rate increases were in the cards for 2018. Meanwhile, the U.S. is scheduled to impose tariffs on $34 billion of Chinese imports Friday, and China is expected to counter with corresponding tariffs on U.S. imports in less than 24 hours, marking a mounting tit-for-tat conflict between the world's largest economies that has threatened to rattle global markets. Equity and commodity exchanges in the U.S. were closed in observance of Independence Day on Wednesday. Looking ahead, investors will await a key report on jobs on Friday that could influence investor sentiment. The day's action began on a high note on reports that suggested the U.S. was softening its stance against the European Union, with an offer of a "zero solution" to car tariffs. In corporate news, shares of Qorvo Inc. QRVO, +5.66% were the best performer S&P 500, up about 5.7%, while CF Industries Holdings Inc. CF, -2.73% posted the steepest decline, off 2.7%.

Quote References DJIA +181.92 +0.75% SPX +23.39 +0.86% XLK +0.98 +1.41% XLV +0.87 +1.04% XLP +0.71 +1.38% COMP +83.75 +1.12% QRVO +4.38 +5.66% CF -1.21 -2.73% Show all references MarketWatch Partner Center Most Popular Brace for a lost decade for U.S. stocks, warn Morningstar strategists Harvard University is fighting to keep its secretive admissions process under wraps Tech rally leads stocks higher; trade and Fed minutes also in focus The 21st Century has not been the American Century Mortgage rates fall to 3-month low as flight to safety rolls on $(function() { if (window.MutationObserver) { // arrive breaks if MutationObserver not supported by browser $("#dianomiRightRail").arrive(".dianom

Domo Richly Priced At Post-IPO Market Value

&l;p&g;&l;img class=&q;size-full wp-image-185988&q; src=&q;http://blogs-images.forbes.com/greatspeculations/files/2018/06/https___blogs-images.forbes.com_alexkonrad_files_2018_06_domo-ipo1.jpg?width=960&q; alt=&q;&q; data-height=&q;640&q; data-width=&q;960&q;&g; Domo CEO Josh James rings the bell at Nasdaq as the company goes public on June 29, 2018.

Domo (DOMO), a business intelligence and data visualization provider, went public on Thursday, June 28. At a price range of $19 to $22 per share, the company planned to raise up to $189 million. At the midpoint of this price range, DOMO currently earns a &l;a href=&q;https://www.newconstructs.com/stock-rating-methodology/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;very unattractive rating&l;/a&g;. The stock closed Monday at $23.75.

Domo&a;rsquo;s valuation at IPO was less than a quarter of the &l;a href=&q;https://www.domo.com/news/press/domo-closes-100m-in-series-d2-extension-financing-with-a-2-3b-valuation&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;$2.3 billion&l;/a&g; valuation assigned by its last private funding round in April 2017. The company comes to market burning cash at a rapid rate and needing an infusion of capital to fund its operating costs. Meanwhile, concerns over slowing growth and CEO Josh James&a;rsquo; &l;a href=&q;https://www.fool.com/investing/2018/06/19/domo-gets-a-hair-cut-sort-of-addresses-yellow-flag.aspx&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;history of self-dealing&l;/a&g; have investors justifiably spooked, as well as competitive threats from entrenched outfits like Tableau Software (DATA), Salesforce.com (CRM), Oracle (ORCL) and IBM.

Some investors may view these recent struggles as a buy low opportunity, but that could be a big mistake. Despite the recent price drop, Domo still has highly optimistic growth expectations baked into its stock price. Investors should stay away from this IPO.

&l;strong&g;Record Low Profitability&l;/strong&g;

Domo has the unenviable distinction of earning the lowest return on invested capital (&l;a href=&q;https://www.newconstructs.com/education-return-on-invested-capital/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;ROIC&l;/a&g;) of any of the 2,800+ companies under coverage. With an ROIC of -344%, it lost over three dollars for every dollar invested in its business in 2017. Since ROIC is the &l;a href=&q;https://www.newconstructs.com/roic-paradigm-linking-corporate-performance-valuation/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;primary driver of valuation&l;/a&g;,&l;a href=&q;#_ftn1&q; name=&q;_ftnref1&q; target=&q;_blank&q;&g;&l;/a&g; Domo&a;rsquo;s extremely negative ROIC is a major red flag for investors.

Figure 1 shows that DOMO&a;rsquo;s losses have remained steady. Even as revenue grew by 46% in 2016, after-tax operating profit (NOPAT) remained roughly flat at negative $175 million.

&l;strong&g;Figure 1: DOMO Revenue and NOPAT Since 2016&l;/strong&g;

&l;a href=&q;https://blogs-images.forbes.com/greatspeculations/files/2018/06/NewConstructs_DOMO_RevGrowthVsNOPAT_2018-06-25.jpg&q; target=&q;_blank&q;&g;&l;img class=&q;size-full wp-image-185763&q; src=&q;http://blogs-images.forbes.com/greatspeculations/files/2018/06/NewConstructs_DOMO_RevGrowthVsNOPAT_2018-06-25.jpg?width=960&q; alt=&q;&q; data-height=&q;267&q; data-width=&q;646&q;&g;&l;/a&g; DOMO Revenue vs. NOPAT

A deeper look at the number doesn&a;rsquo;t reveal much cause for optimism. Gross margin did increase slightly in 2017, from 56% to 59%, but that increase was driven solely by a shift in the revenue mix from Professional Services to Subscription revenue. Subscription gross margins actually declined slightly from 63.4% to 62.9%.

&l;strong&g;Marketing Spend Is Unsustainable&l;/strong&g;

In addition to its comparatively low gross margins, Domo&a;rsquo;s huge losses are driven by its sky-high marketing spend. The company spent $132 million &a;ndash; 121% of revenue &a;ndash; on sales and marketing in 2017.

Potential investors should be alarmed that Domo&a;rsquo;s large marketing budget has not led to higher growth. Figure 2 compares Domo to several other high-profile tech IPOs in 2018 on the basis of revenue growth and selling expense as a percentage of revenue. It shows that Domo ranks in the middle of pack in terms of growth despite spending nearly double that of the next highest company.

&l;strong&g;Figure 2: Revenue Growth and Selling Expenses for Recent Tech IPOs&l;/strong&g;

&a;nbsp;

&l;a href=&q;https://blogs-images.forbes.com/greatspeculations/files/2018/06/NewConstructs_DOMO_RevAndOpExpensesVsPeers_2018-06-25.jpg&q; target=&q;_blank&q;&g;&l;img class=&q;size-full wp-image-185764&q; src=&q;http://blogs-images.forbes.com/greatspeculations/files/2018/06/NewConstructs_DOMO_RevAndOpExpensesVsPeers_2018-06-25.jpg?width=960&q; alt=&q;&q; data-height=&q;244&q; data-width=&q;646&q;&g;&l;/a&g; DOMO vs. Peer IPOs

Even worse, Domo&a;rsquo;s revenue growth is slowing even as its sales and marketing budget remains sky-high. Revenue growth slowed to 32% year over year in Q1 while the company spent 124% of revenue on sales and marketing.

Domo&a;rsquo;s huge marketing budget led to &l;a href=&q;https://www.newconstructs.com/education-free-cash-flow/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;free cash flow&l;/a&g; of -$160 million in 2017. With just $72 million in cash on hand, the company must cut back on its expenses significantly or constantly raise new capital.

&l;!--nextpage--&g;

One place where Domo has already cut costs is in research and development, where its spending declined by 3% in 2017. Underinvesting in the product while overspending on marketing could be a bad sign for the long-term health of the company.

&l;strong&g;Shareholders Have Little Control: CEO Gets 86% of Voting Power&l;/strong&g;

Domo follows in the footsteps of other recent IPOs like &l;a href=&q;https://www.newconstructs.com/dont-buy-what-smart-money-sells/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;Dropbox&l;/a&g; (DBX) and &l;a href=&q;https://www.newconstructs.com/danger-zone-snap-inc-snap/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;Snapchat&l;/a&g; (SNAP) by issuing dual class shares that keeps voting power in the hands of its founder. Despite holding just 15% of the company&a;rsquo;s shares, CEO Josh James will have 86% of the voting power, meaning outside shareholders will effectively have no say in the direction of the company.

&l;strong&g;CEO Has History of Self-Dealing With Family Businesses&l;/strong&g;

The dual-class share structure is especially concerning for Domo, as CEO Josh James has revealed a troubling lack of judgement in the past. The company has been involved in a significant amount of self-dealing, such as leasing a jet and hiring catering and furnishing services from companies owned by James and his siblings. The company recently &l;a href=&q;https://www.fool.com/investing/2018/06/19/domo-gets-a-hair-cut-sort-of-addresses-yellow-flag.aspx&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;filed an amended S-1&l;/a&g; saying it has terminated these relationships, but the existence of these conflicts in the first place is a major red flag.

&l;strong&g;Family, Friends and Insiders Seek Loophole to Avoid Lock-up&l;/strong&g;

In that amended filing, Domo also brought up a new red flag with the announcement of a &l;a href=&q;https://seekingalpha.com/article/4182936-domo-adds-scary-provision-revised-ipo-filing-regardless-price-buy&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;direct share program&l;/a&g; to sell shares in the IPO to company insiders as well as their friends and families. Notably, the friends and families would not be subject to any lockup period in this agreement, meaning they could buy shares at the IPO price and quickly flip them for a profit in the event of a first-day pop.

Taken together, all these governance issues point to a company that is run for the benefit of insiders and executives rather than for shareholders.

&l;strong&g;My Discounted Cash Flow Model Reveals More Potential Downside Risk&l;/strong&g;

Despite the 75% decline in its valuation over the past year, the growth expectations for Domo are still unrealistically high. My&a;nbsp;&l;a href=&q;https://www.newconstructs.com/education-close-the-loopholes-how-our-dcf-works/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;dynamic DCF&l;/a&g; model quantifies exactly what kind of future cash flows the market price of a stock implies a company will generate.

To justify the midpoint IPO price of $20.50/share, Domo must achieve pre-tax margins of 15% &a;ndash; comparable to large enterprise software provider like IBM (IBM) &a;ndash; and grow revenue by 20% compounded annually for the next seven years. The proposed IPO valuation implies that Domo can significantly cut back on its marketing expenses while still maintaining a relatively high growth rate.

Specifically, the company would have to cut sales and marketing costs from 120% to 35% of revenue, maintain its current gross margin on subscription revenue of 63%, and keep all other operating costs at current levels while still growing revenue at 20% annually. Also, Domo would go from having the worst ROIC of any company in our coverage universe to earning a top-quintile 37% ROIC in seven years. &l;a href=&q;https://www.newconstructs.com/wp-content/uploads/2018/06/DOMO_DCF_20.50.png&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;See the math behind this dynamic DCF scenario here&l;/a&g;.

If Domo achieves 10% pre-tax margins and grows revenue by 11% compounded annually for the next decade, the stock is worth just $8/share today, 62% below the midpoint of the IPO range. In this scenario, Domo would go from having the worst ROIC of any company in our coverage universe to earning a top-quintile 24% ROIC in ten years. &l;a href=&q;https://www.newconstructs.com/wp-content/uploads/2018/06/DOMO_DCF_8.png&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;See the math behind this dynamic DCF scenario here&l;/a&g;.

&l;strong&g;Critical Details Found in Financial Filings By My Firm&s;s&a;nbsp;&l;/strong&g;&l;a href=&q;https://www.newconstructs.com/harvard-publishes-case-study-on-our-robo-analyst-technology/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;&l;strong&g;Robo-Analyst Technology&l;/strong&g;&l;/a&g;

As investors &l;a href=&q;https://www.newconstructs.com/iss-buying-eva-dimensions-signals-more-focus-on-fundamental-research/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;focus more&l;/a&g; on fundamental research, research automation technology is needed to analyze all the critical financial &l;a href=&q;https://www.newconstructs.com/danger-zone-fund-managers-that-dont-analyze-details-in-10-ks/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;details in financial filings&l;/a&g;. Below are specifics on the adjustments I make based on Robo-Analyst&l;a href=&q;#_ftn2&q; name=&q;_ftnref2&q; target=&q;_blank&q;&g;&l;/a&g; findings in Domo&a;rsquo;s S-1:

Income Statement: I made $2 million of adjustments, with a net effect of removing $2 million in non-operating expense (2% of revenue). The biggest adjustment was removing $1 million in non-operating expense due to the &l;a href=&q;https://www.newconstructs.com/implied-interest-op-lease-nopat-adj/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;implied interest cost on operating leases&l;/a&g;. You can see all the adjustments made to DOMO&a;rsquo;s income statement &l;a href=&q;https://www.newconstructs.com/wp-content/uploads/2018/06/DOMO_IS_Adjustments.png&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;here&l;/a&g;.

Balance Sheet: I made $17 million of adjustments to calculate invested capital with a net increase of $16 million. The largest adjustments was $17 million in &l;a href=&q;https://www.newconstructs.com/off-balance-sheet-debt/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;operating leases&l;/a&g;. This adjustment represented 62% of reported net assets. You can see all the adjustments made to DOMO&a;rsquo;s balance sheet &l;a href=&q;https://www.newconstructs.com/wp-content/uploads/2018/06/DOMO_BS_Adjustments.png&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;here&l;/a&g;.

Valuation: I made $84 million of adjustments with a net effect of decreasing shareholder value by $84 million. There were no adjustments that increased shareholder value. Outside of the operating leases mentioned above, the largest adjustment to shareholder value was $20 million in &l;a href=&q;https://www.newconstructs.com/outstanding-employee-stock-options/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;outstanding employee stock options&l;/a&g;. This option adjustment represents 4% of DOMO&a;rsquo;s proposed market cap.

&l;em&g;Disclosure: David Trainer, Kyle Guske II, and Sam McBride receive no compensation to write about any specific stock, style, or theme.&l;/em&g;

&l;em&g;&a;nbsp;&l;/em&g;&l;a href=&q;#_ftnref1&q; name=&q;_ftn1&q; target=&q;_blank&q;&g;&l;/a&g; Ernst &a;amp; Young&a;rsquo;s recent white paper &a;ldquo;&l;a href=&q;https://www.newconstructs.com/ernst-young-proves-superiority-of-our-data-roic/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;Getting ROIC Right&l;/a&g;&a;rdquo; demonstrates the link between an accurate calculation of ROIC and shareholder value.

&l;a href=&q;#_ftnref2&q; name=&q;_ftn2&q; target=&q;_blank&q;&g;&l;/a&g; Harvard Business School features the powerful impact of our research automation technology in the case &l;a href=&q;https://hbr.org/product/new-constructs-disrupting-fundamental-analysis-with-robo-analysts/118068-PDF-ENG&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;New Constructs: Disrupting Fundamental Analysis with Robo-Analysts&l;/a&g;.&l;/p&g;

Brokerages Set $1.64 Price Target for Quarterhill Inc (QTRH)

Shares of Quarterhill Inc (NASDAQ:QTRH) have earned an average broker rating score of 2.50 (Hold) from the two analysts that provide coverage for the company, Zacks Investment Research reports. One analyst has rated the stock with a hold rating and one has assigned a buy rating to the company. Quarterhill’s rating score has declined by 25% from 90 days ago as a result of various analysts’ upgrades and downgrades.

Brokerages have set a 1 year consensus price objective of $1.64 for the company and are forecasting that the company will post ($0.02) earnings per share for the current quarter, according to Zacks. Zacks has also assigned Quarterhill an industry rank of 143 out of 255 based on the ratings given to related companies.

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QTRH has been the topic of several recent analyst reports. Canaccord Genuity downgraded Quarterhill to a “buy” rating in a research report on Friday, March 2nd. ValuEngine downgraded Quarterhill from a “buy” rating to a “hold” rating in a research report on Monday, April 2nd. Finally, Zacks Investment Research raised Quarterhill from a “sell” rating to a “hold” rating in a research report on Thursday, May 3rd.

NASDAQ QTRH traded down $0.03 during trading on Friday, hitting $1.13. The company’s stock had a trading volume of 346,972 shares, compared to its average volume of 114,463. The company has a market cap of $137.80 million, a P/E ratio of 2.17 and a beta of 0.63. Quarterhill has a 52 week low of $1.12 and a 52 week high of $2.12.

Quarterhill (NASDAQ:QTRH) last issued its quarterly earnings results on Thursday, May 10th. The company reported ($0.04) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.02) by ($0.02). The business had revenue of $12.01 million during the quarter, compared to the consensus estimate of $24.61 million. Quarterhill had a return on equity of 21.36% and a net margin of 3.89%. sell-side analysts expect that Quarterhill will post -0.13 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 6th. Shareholders of record on Friday, June 15th will be given a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 3.54%. The ex-dividend date is Thursday, June 14th. Quarterhill’s dividend payout ratio is currently 7.69%.

Hedge funds and other institutional investors have recently modified their holdings of the business. Ramsey Quantitative Systems bought a new position in Quarterhill in the 4th quarter worth approximately $119,000. Two Sigma Advisers LP bought a new stake in shares of Quarterhill during the fourth quarter valued at approximately $106,000. PenderFund Capital Management Ltd. bought a new stake in shares of Quarterhill during the first quarter valued at approximately $1,901,000. Two Sigma Investments LP bought a new stake in shares of Quarterhill during the fourth quarter valued at approximately $603,000. Finally, Spark Investment Management LLC bought a new stake in shares of Quarterhill during the first quarter valued at approximately $374,000. 14.89% of the stock is currently owned by institutional investors.

Quarterhill Company Profile

Quarterhill Inc focuses on acquisition and management of technology companies that provides products and services worldwide. Its Technology segment licenses patent technologies to approximately 355 companies. Its patent portfolios include patents relating to 3D television, phased loop semiconductor, semiconductor manufacturing and packaging, medical stent, intelligent personal assistant, streaming video, semiconductor clocking, LED lighting, smart meter monitoring, non-volatile flash memory and other memory, building automation, enhanced image processing, computer gaming, and various other technologies; automotive headlight assemblies, microcontrollers applicable to safety-critical aerospace, and CMOS image sensors; and medical, industrial, and automotive applications.

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For more information about research offerings from Zacks Investment Research, visit Zacks.com

All Eyes on Italy Auction to Gauge If the Bond Storm Has Passed

Is the worst over for Italian bonds? The nation’s debt auction on Wednesday could provide a clue or two.

The debt office plans to issue up to 1.75 billion euros ($2 billion) five-year bonds, 2.25 billion euros of 10-year debt and 2 billion euros of 2025 floating-rate notes. The bidding deadline is 10 a.m. in London, with results due about 30 minutes later. The five- and 10-year offers will be particularly in focus, with the maximum supply seen as equivalent to a combined 24,470 Italian bond futures or 2.5 million euros of risk per basis point move.

The auction could still sail through, given potential support from a bond redemption of 18.5 billion euros due on Friday. Intesa Sanpaolo SpA is the largest investor in that security, and domestic lenders typically reinvest maturity proceeds. Also, investors may take use the sale as an opportunity to buy in larger sizes than afforded in secondary markets.

Italian debt is set for the largest month-end index extension among European peers, according to Morgan Stanley, and should see passive index investors re-balance portfolios. It may easily be overlooked, but the nation’s securities now offer the highest yields for any major sovereign, excluding Greece.

Both the five- and 10-year securities on offer were last sold on April 27, when the five-year note saw demand slipping to 1.36 times the offer size from 1.78 previously, and overbidding of 1 cent. The 10-year had seen slightly improved appetite with the bid-to-cover ratio rising to 1.38 from 1.30, and 5 cents of overbidding.

Italy sold 5.5 billion euros of six-month bills on Tuesday at a bid-to-cover of 1.19, the lowest since April 2010. The meltdown in Italian assets has rendered any relative-value evaluation of the auction bonds mostly irrelevant. For example, using carry and roll analysis, investors would have lost three months of profits on Tuesday alone.

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Will This Be the First Esports League to Generate $1 Billion?

Activision Blizzard (NASDAQ:ATVI) recently revealed that its Overwatch League esport event is already approaching $1 billion in cumulative revenue since the company began selling teams last year. As famous investors and entrepreneurs scoop up franchises, the company is already making plans to expand the league.

In this clip from Industry Focus: Consumer Goods, Vincent Shen and John Ballard discuss what this latest development says about the future potential of esports as a major business for video game companies.

A full transcript follows the video.

This video was recorded on May 22, 2018.

Vincent Shen: We've managed to set the stage a little bit for how big esports is getting. A few years ago, companies were more tight-lipped about how profitable or lucrative some of these events and leagues could be. But now, the viewership and engagement are exceeding a lot of expectations, the companies are sharing much more detail.

Activision, for example, they're managing to sell teams in its esports league for $20 million each or more, and that number seems to be going up. Can you tell us a little bit about some of the actual contributions that these opportunities are making?

John Ballard: Activision recently revealed that they've sold, so far, 12 teams for $20 million each. That comes out to about $240 million. They sold more than $100 million of broadcast rights and sponsorship sales, and that's just for a handful so far. This is why the Nielsen news can be big. If Nielsen reports strong data and gets that accelerating, brings in more advertisers to have interest in this, that'll increase that even more.

Activision wants to expand Overwatch League to 28 teams. That gives us a clue as to where the scale of this is going to be. Management has said the price of teams, so far, is going up because there's such demand they're seeing because of the strong viewership from the beginning of the year. Let's say teams sell for $25 million. That'd be an additional $400 million. ESPN has already reported from their sources that that could fetch between $30 million to $60 million each. You do the math, 16 teams for as much as $60 million, that could be another $1 billion in revenue.

Shen: Or getting really close to that point very quickly.

Ballard: Yeah. Now, we have to keep in mind, though, that's just one-time team sales. That's not recurring revenue. But obviously, these are smart business people. These are entrepreneurs. You have Robert Kraft at the New England Patriots who's bought one of these teams. His track record speaks for itself in the NFL, growing the New England Patriots. These are well-informed business people buying these teams, and they obviously expect this to be a good investment and to recover that cost of these teams and profit over the next several years. That's something interesting to keep in mind about these team sales.

In a way, these teams' values give us an indicator as to what potentially could be the annual recurring value of Overwatch League, if you want to think about it in terms of revenue or whatever. It's pretty obvious that this is probably going to be, conservatively, at least a $1 billion business segment for Activision when you look at all that. You add up the team sales, you add up the sponsorships, you anticipate there's going to be more advertisers coming in at some point spending money annually on this --

Shen: I would go beyond that, really, beyond the direct contributions from things that you mentioned like sponsorships, advertising, ticket sales, franchise deals. Management at these companies also recognize that their bread and butter here is also from the increased interest that they generate in their esports titles. This ends up creating a virtuous cycle. Esports popularity draws in more viewers, more potential players. And while most of these games do cost money to purchase, so companies get revenue from that initial sale, they want to extend the tail of revenue generation from each title. That happens thanks to greater engagement, because most of these games have in-game purchases, downloadable content.

And some popular titles, like Fortnite, which Tencent has its fingers in as part-owner of the game's developer, that costs no money upfront and it's free to play. But even then, the latest estimates for that game put monthly revenue at over $200 million, really, really impressive.

U.S. stocks close mostly lower but book weekly gains

U.S. stocks closed mostly lower on Friday, largely due to a selloff in energy shares. The S&P 500 energy sectors slumped 2.6%, weighing on the broader index. But all three main benchmarks posted weekly gains. The Dow Jones Industrial Average DJIA, -0.24% closed 58.67 points, or 0.2%, lower at 24,753.09, but posted a 0.2% weekly gain. The S&P 500 index SPX, -0.24% fell 6.43 points, or 0.2% to 2,721.33 but ended the week 0.3% higher. Meanwhile the Nasdaq Composite COMP, +0.13% advanced 9.42 points, or 0.1% to 7,433.85 and gained 1.1% over the week. Among the worst performers on the S&P 500, Gap Inc. GPS, -14.58%

BMO Capital Markets Increases Primo Water (PRMW) Price Target to $16.00

Primo Water (NASDAQ:PRMW) had its price objective hoisted by analysts at BMO Capital Markets from $15.00 to $16.00 in a research note issued on Thursday. The firm currently has a “market perform” rating on the stock. BMO Capital Markets’ price target points to a potential upside of 0.88% from the company’s current price.

PRMW has been the subject of a number of other research reports. ValuEngine upgraded shares of Primo Water from a “sell” rating to a “hold” rating in a research note on Wednesday, May 2nd. BidaskClub lowered shares of Primo Water from a “hold” rating to a “sell” rating in a research note on Tuesday, March 13th. Barrington Research restated a “buy” rating and set a $20.00 price target on shares of Primo Water in a research note on Friday, April 6th. B. Riley set a $18.00 price target on shares of Primo Water and gave the company a “buy” rating in a research note on Monday, March 5th. Finally, William Blair began coverage on shares of Primo Water in a research note on Thursday. They set an “outperform” rating for the company. Two research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average price target of $17.50.

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Shares of PRMW stock opened at $15.86 on Thursday. The firm has a market cap of $503.45 million, a price-to-earnings ratio of 322.60, a price-to-earnings-growth ratio of 4.43 and a beta of -0.16. The company has a debt-to-equity ratio of 4.13, a current ratio of 1.05 and a quick ratio of 0.90. Primo Water has a 12 month low of $10.47 and a 12 month high of $16.44.

Primo Water (NASDAQ:PRMW) last announced its quarterly earnings results on Tuesday, May 8th. The company reported $0.03 EPS for the quarter, beating the Zacks’ consensus estimate of ($0.04) by $0.07. The business had revenue of $73.70 million during the quarter, compared to analyst estimates of $67.00 million. Primo Water had a net margin of 2.25% and a return on equity of 2.24%. Primo Water’s quarterly revenue was up 21.4% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.05) EPS. analysts forecast that Primo Water will post 0.3 EPS for the current year.

In other Primo Water news, CFO David J. Mills sold 5,934 shares of Primo Water stock in a transaction on Monday, May 7th. The shares were sold at an average price of $13.50, for a total transaction of $80,109.00. Following the transaction, the chief financial officer now directly owns 79,624 shares of the company’s stock, valued at approximately $1,074,924. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO David J. Mills sold 2,336 shares of Primo Water stock in a transaction on Friday, May 18th. The stock was sold at an average price of $15.00, for a total transaction of $35,040.00. Following the transaction, the chief financial officer now directly owns 64,682 shares in the company, valued at $970,230. The disclosure for this sale can be found here. Insiders have sold a total of 27,618 shares of company stock worth $387,780 over the last ninety days. Insiders own 13.50% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of PRMW. Caption Management LLC purchased a new position in Primo Water during the 4th quarter worth $101,000. MetLife Investment Advisors LLC purchased a new position in Primo Water during the 4th quarter worth $138,000. Driehaus Capital Management LLC purchased a new position in Primo Water during the 4th quarter worth $166,000. Quantitative Systematic Strategies LLC purchased a new position in Primo Water during the 1st quarter worth $173,000. Finally, A.R.T. Advisors LLC purchased a new position in Primo Water during the 1st quarter worth $210,000. 70.27% of the stock is currently owned by hedge funds and other institutional investors.

About Primo Water

Primo Water Corporation, together with its subsidiaries, provides multi-gallon purified bottled water, self-service refill water, and water dispensers in the United States and Canada. It operates in three segments: Refill, Exchange, and Dispensers. The Refill segment sells filtered drinking water dispensed directly to consumers through self-service machines.

Best Medical Stocks To Buy For 2019

tags:HUN,LOW,RF,HEI,HFWA,

Johnson & Johnson (NYSE:JNJ) is a $325 B giant in the healthcare space. The company sells to consumers with brands such as Tylenol, Motrin, Listerene, Benadryl, Sudafed and many more. The consumer segment provides a stable base for the company with consistent demand whether the economy is booming or busting. Johnson & Johnson is more than just a consumer-centric company and also operates in the higher margin, but more variable pharmaceutical and medical device space.

Johnson & Johnson is the 2nd largest position in my portfolio for good reason. The consistent growth year after year and management's willingness to reward shareholders with higher dividends is the obvious draw for investors.

On a price basis, Johnson & Johnson has far outperformed the broader S&P 500 year to date. Through Friday's close, Johnson & Johnson has seen its share price increase 15.1% from the end of 2015 compared to a 4.1% rise for the S&P 500.

Unfortunately, a large increase in the share price means a decline in the future return prospects, all else being equal. So what do the expected returns look like now?

Best Medical Stocks To Buy For 2019: Huntsman Corporation(HUN)

Advisors' Opinion:

• [By Andy Pai]

  Three of these were chemical companies: Westrock Co (NYSE: WRK), Olin Corporation (NYSE: OLN), and Huntsman Corporation (NYSE: HUN). In reviewing upside, multiples, and margins, Huntsman looked like the best candidate for a deeper dive.

• [By Logan Wallace]

  State Board of Administration of Florida Retirement System cut its stake in Huntsman Co. (NYSE:HUN) by 2.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 331,289 shares of the basic materials company’s stock after selling 7,276 shares during the quarter. State Board of Administration of Florida Retirement System owned about 0.14% of Huntsman worth $9,690,000 at the end of the most recent quarter.

• [By Logan Wallace]

  Karp Capital Management Corp lifted its stake in shares of Huntsman Corp (NYSE:HUN) by 299.4% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 66,760 shares of the basic materials company’s stock after purchasing an additional 50,045 shares during the period. Karp Capital Management Corp’s holdings in Huntsman were worth $1,953,000 at the end of the most recent reporting period.

• [By Taylor Cox]

  Investor Events

  Annual shareholder meetings for MGP Ingredients, Inc (NASDAQ: MGPI) and Fiserv, Inc (NASDAQ: FISV), respectively Huntsman Corporation (NYSE: HUN) investor day

  Thursday

• [By Max Byerly]

  Cypress Capital Management LLC WY increased its position in Huntsman Corp (NYSE:HUN) by 175.8% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 17,460 shares of the basic materials company’s stock after acquiring an additional 11,130 shares during the period. Cypress Capital Management LLC WY’s holdings in Huntsman were worth $513,000 at the end of the most recent reporting period.

Best Medical Stocks To Buy For 2019: Lowe's Companies Inc.(LOW)

Advisors' Opinion:

• [By Lisa Levin]

  Breaking news

  Target Corporation (NYSE: TGT) reported weaker-than-expected earnings for its first quarter, while sales missed estimates. Tiffany & Co. (NYSE: TIF) reported upbeat results for its first quarter and raised its FY2018 earnings guidance. Lowe's Companies, Inc. (NYSE: LOW) reported downbeat results for its first quarter on Wednesday. Urban Outfitters, Inc. (NASDAQ: URBN) reported better-than-expected earnings for its fiscal first quarter on Tuesday.

• [By Max Byerly]

  Lowe’s (NYSE:LOW) has been given a $111.00 target price by equities research analysts at Credit Suisse Group in a research report issued to clients and investors on Wednesday. The firm currently has a “buy” rating on the home improvement retailer’s stock. Credit Suisse Group’s target price would suggest a potential upside of 15.04% from the company’s current price.

• [By Lisa Levin] Gainers Cara Therapeutics, Inc. (NASDAQ: CARA) shares surged 42.76 percent to close at $16.56 on Wednesday in reaction to a new licensing agreement with Europe-based Vifor Pharma. As part of the agreement, the biopharmaceutical company that alleviates pain licensed worldwide rights (except U.S., Japan, and South Korea) to Vifor Pharma to commercialize its KORSUVA therapy to Vifor $70 million. Yangtze River Port and Logistics Limited (NASDAQ: YRIV) gained 31.28 percent to close at $7.05 on Wednesday. Tiffany & Co. (NYSE: TIF) climbed 23.29 percent to close at $126.05 after the company reported upbeat results for its first quarter and raised its FY2018 earnings guidance. EVO Payments, Inc. (NASDAQ: EVOP) gained 18.88 percent to close at $19.02. EVO Payments priced its IPO at $16 per share. Carver Bancorp, Inc. (NASDAQ: CARV) rose 16.1 percent to close at $6.85. USA Technologies, Inc. (NASDAQ: USAT) gained 15.68 percent to close at $13.65 after announcing pricing of public offering. eXp World Holdings, Inc. (NASDAQ: EXPI) shares jumped 15.01 percent to close at $17.70. Geron Corporation (NASDAQ: GERN) gained 14.99 percent to close at $4.68. Evolus, Inc. (NASDAQ: EOLS) rose 14.62 percent to close at $19.36. Ralph Lauren Corporation (NYSE: RL) shares rose 14.34 percent to close at $133.33 after the company reported stronger-than-expected results for its fourth quarter. Turtle Beach Corporation (NASDAQ: HEAR) jumped 13.26 percent to close at $17.34 on Wednesday. Turtle Beach S-3 showed registration for 1.857 million share common stock offering via selling holders. Communications Systems, Inc. (NASDAQ: JCS) rose 13.18 percent to close at $3.95. Communications Systems reported establishment of special committee to explore strategic alternatives. Immutep Limited (NASDAQ: IMMP) shares climbed 12.95 percent to close at $2.53. xG Technology, Inc. (NASDAQ: XGTI) rose 12.64 percent to close at $0.8561 after the company&rsq
• [By Chris Lange]

  The Lowe��s Companies Inc. (NYSE: LOW) first-quarter report is scheduled for Wednesday. The consensus forecast is for $1.27 in EPS on $17.69 billion in revenue. Shares closed at $86.34 apiece. The consensus price target is $105.38, and the 52-week range is $70.76 to $108.98.

• [By Logan Wallace]

  Prudential Financial Inc. lessened its position in shares of Lowe’s (NYSE:LOW) by 19.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 945,909 shares of the home improvement retailer’s stock after selling 230,358 shares during the period. Prudential Financial Inc. owned approximately 0.11% of Lowe’s worth $83,003,000 as of its most recent filing with the Securities and Exchange Commission.

Best Medical Stocks To Buy For 2019: Regions Financial Corporation(RF)

Advisors' Opinion:

• [By ]

  In the Lightning Round, Cramer was bullish on Align Technology (ALGN) , Regions Financial (RF) , Edwards Lifesciences (EW) , Qualys (QLYS) and HEICO (HEI) .

• [By ]

  Regions Financial (NYSE: RF) could be a beneficiary of the move to deregulation in banking this year and is expected to grow earnings by 24% to $1.35 per share. The bank is seeing strong growth in non-interest income sources and management has a plan to cut up to 10% in operating expenses for greater profitability. Regions has a strong deposit base across the Southeast and averages a 7% return on equity, well above the industry average.

• [By ]

  Regions Financial (RF) : "I think this one is real good. I like the banks here."

  Edwards Lifesciences (EW) : "They have the best devices. That stock is a buy."

Best Medical Stocks To Buy For 2019: Heico Corporation(HEI)

Advisors' Opinion:

• [By ]

  HEICO (HEI) : "We're not buying anything at a 52-week high -- but on a pullback, you bet."

  Cramer and the AAP team say the main factor contributing to Friday's weakness was Apple (AAPL) . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on Heico (HEI)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By ]

  In the Lightning Round, Cramer was bullish on Align Technology (ALGN) , Regions Financial (RF) , Edwards Lifesciences (EW) , Qualys (QLYS) and HEICO (HEI) .

• [By Shane Hupp]

  HEICO Corp (NYSE:HEI) shares hit a new 52-week high and low during mid-day trading on Monday . The company traded as low as $93.55 and last traded at $92.05, with a volume of 2840 shares changing hands. The stock had previously closed at $93.16.

Best Medical Stocks To Buy For 2019: Heritage Financial Corporation(HFWA)

Advisors' Opinion:

• [By Max Byerly]

  PCSB Bank (NASDAQ: PCSB) and Heritage Financial (NASDAQ:HFWA) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.