Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The Dow Jones Industrial Average (DJINDICES: ^DJI ) plummeted today, falling 225 points, or 1.5%, as investors worried that consumers were cutting back on their spending after disappointing reports by Wal-Mart (NYSE: WMT ) and other retailers.
Reporting earnings this morning, Wal-Mart said it missed on both top and bottom lines, and lowered its full-year outlook. The world's largest retailer earned $1.24 per share, missing estimates by a $0.01, while revenue increased 2.4%, to $116.2 billion, below expectations of $118.1 billion. Same-store sales also fell at Wal-Mart's U.S. stores for the second quarter in a row, declining by 0.3%. That figure is closely watched because nearly 10% of non-automotive consumer spending in the U.S. takes place at Wal-Mart, and economists see it as a bellwether for the economy as a whole. The company blamed the slowdown on the payroll tax increase and higher gas prices, and it now expects a full-year sales increase of just 2%-3%, instead of the previously forecasted 5%-6%. It also cut its EPS forecast to $5.10-$5.30, from $5.20-$5.40, and shares finished down 2.6%.
Top 10 Prefered Stocks To Own Right Now: Xerox Corporation(XRX)
Xerox Corporation provides business process and information technology (IT) outsourcing, and document management services worldwide. Its business process outsourcing services include human resources services; finance and accounting services; healthcare payers and pharma; customer management solutions; healthcare provider solutions; technology-based transactional services for retail, travel, and non-healthcare insurance companies; programs for federal, state, county, and town governments; transportation solutions; and government healthcare solutions. The company is involved in designing, developing, and delivering IT solutions, such as comprehensive systems support, systems administration, database administration, systems monitoring, batch processing, data backup, and capacity planning services; telecommunications management services; and desktop services. Its document outsourcing services comprise managed print services that optimize, rationalize, and manage the operation of Xerox and non-Xerox print devices; and communication and marketing services that deliver design, communication, marketing, logistic, and distribution services through SMS, Web, email, and mobile, as well as print media. The company also manufactures and sells products, including desktop monochrome, color and compact printers, multifunction printers, copiers, digital printing presses, and light production devices for small/mid-size businesses and large enterprises. In addition, it sells paper, wide-format systems, network integration solutions, and electronic presentation systems. The company sells its products and solutions through its sales force, as well as through a network of independent agents, dealers, value-added resellers, systems integrators, and the Web. Xerox Corporation was founded in 1906 and is headquartered in Norwalk, Connecticut.
Advisors' Opinion:- [By Marc Bastow]
With earnings season now in full swing, the uptick in dividend stocks declaring dividend increases marches on. Indeed, thirteen dividend stocks increased their payouts over the past week, including a big surprise from copier-turned document management company Xerox (XRX), who surprised shareholders with a sturdy dividend raise.
Hot Consumer Stocks To Own Right Now: CTI Industries Corporation (CTIB)
CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. The company offers novelty products that comprise foil balloons, such as Superloons, Ultraloons, Miniloons, Card-B-Loons, Shape-A-Loons, and mini shapes; latex balloons under the Partyloons name; and toy balloon products consisting of punch balls, water bombs, animal twisties, and other inflatable toy items. It also provides flexible containers for home and consumer use for the storage and preservation of food and personal items, including devices for sealing and evacuating air from such containers; and packaging films and custom film products used for food, and other packaging and commercial applications. In addition, the company offers pouches and bags comprising valved and re sealable pouches for the storage of household items; vacuum sealable bags for food storage; re sealable and valved bags for the sto rage and vacuum sealing of food items in the house under the ZipVac brand; and open-top pouches, under the ZipLoc name, for use with vacuum sealing machines to vacuum seal, and store food and household items. It primarily serves various retail outlets, including general merchandise, discount and drugstore chains, grocery chains, card and gift shops, and party goods stores, as well as florists and balloon decorators through a network of distributors and wholesalers, and independent sales representatives. CTI Industries Corporation was founded in 1975 and is headquartered in Lake Barrington, Illinois.
Advisors' Opinion:- [By Monica Gerson]
CTI Industries (NASDAQ: CTIB) is estimated to report its Q1 earnings at $0.02 per share on revenue of $15.75 million.
URS (NYSE: URS) is projected to post its Q1 earnings at $0.68 per share on revenue of $2.68 billion.
Hot Consumer Stocks To Own Right Now: Peet's Coffee & Tea Inc.(PEET)
Peet?s Coffee & Tea, Inc. operates as a specialty coffee roaster and marketer of fresh roasted whole bean coffee and tea in the United States. It offers whole bean coffee and related products consisting of products for home brewing, tea, and packaged foods; and beverages and pastries. The company also provides brewing equipment for coffee and tea; paper filters and brewing accessories; and branded and non-branded cups, saucers, travel mugs, and serve ware. Peet?s sells its products through various channels of distribution, including grocery stores; home delivery, office, restaurant, and foodservice accounts; and company-owned and operated stores. As of January 2, 2011, it operated 192 retail stores in California, Colorado, Illinois, Oregon, Massachusetts, and Washington. The company was founded in 1966 and is headquartered in Emeryville, California.
Advisors' Opinion:- [By Chris Hill]
In 2012, the Germany-based�Benckiser Group�spent $1.3B to buy Peet's Coffee & Tea, as well as Caribou Coffee. On Friday, Benckiser announced that it's buying European coffee maker Master Blenders for�around�$10 billion. In the United States, Benckiser is closing 15% of Caribou locations, and�converting 20% of the stores into Peet's (NASDAQ: PEET ) . In this installment of Motley Fool Money, our analysts discuss whether Benckiser's big bet on coffee poses a threat to Starbucks (NASDAQ: SBUX ) .
Hot Consumer Stocks To Own Right Now: Cash Store Financial Services Inc (CSFS)
The Cash Store Financial Services Inc., incorporated on January 17, 2002, under its Cash Store Financial, Instaloans and The Title Store banners, provides consumers with alternative financial products and services, serving everyday people for whom traditional banking may be inconvenient or unavailable. The Company acts as both a broker and lender of short term advances and offers a range of other products and services to help customers meet their day to day financial service needs. The Company employs a combination of payday loans and lines of credit as its primary consumer lending product offerings and earns fees and interest income on these consumer lending products. The Company also offers a range of financial products and services including bank accounts, prepaid MasterCard and private label credit and debit cards, cheque cashing, money transfers, payment insurance and prepaid phone cards. The Company has agency arrangements with a variety of companies to provide these products.
The Company typically arranges for advances to customers that range from $100 to $1,500. As of September 30, 2013, the Company�� total branch count was 537, addition of two new branches in the United Kingdom as well as 10 new Title Store branches and a new Cash Store Financial branch offset by the closure of 12 branches in Canada. The Company owns The Cash Store Australia Holdings Inc. The Company also has an investment in RTF Financial Holdings Inc., which is in the business of short-term lending, by utilizing automated mobile technology.
The Company competes with Dollar Financial Corp.
Advisors' Opinion:- [By John Udovich]
Despite�a slow global economy and continued high unemployment in many countries, small cap payday or pawn stocks Cash Store Financial Services Inc (NYSE: CSFS), DFC Global Corp (NASDAQ: DLLR) and Cash America International, Inc (NYSE: CSH) have not exactly been performing well since the start of the year. In fact, these three stocks are the worst performers in the payday or pawn loan sector, down 38.5%, down 14.4% and up 4.6%, respectively, since the start of the year.
Hot Consumer Stocks To Own Right Now: Smithfield Foods Inc.(SFD)
Smithfield Foods, Inc., together with its subsidiaries, engages in the production and marketing of fresh meat and packaged meats products in the United States and internationally. The company involves in the production of hog; and produces various fresh pork, beef, poultry, and packaged meats products. It sells fresh pork to retail customers as unprocessed and trimmed cuts, such as butts, loins, picnics, and ribs; packaged meats products, including smoked and boiled hams, bacon, sausage, hot dogs, and deli and luncheon meats; specialty products, such as pepperoni and dry meat products; and ready-to-eat prepared foods comprising pre-cooked entrees, and pre-cooked bacon and sausages. The company offers its products to supermarket chains; wholesale distributors; the foodservice industry, including fast food, restaurant and hotel chains, hospitals, and other institutional customers; export markets; and other further processors. It sells its products through its salespersons an d independent commission brokers. Smithfield Foods, Inc. was founded in 1961 and is headquartered in Smithfield, Virginia.
Advisors' Opinion:- [By Michael Lewis]
Virginia-based pork producer Smithfield Foods (NYSE: SFD ) recently released a less-than-stellar earnings announcement, largely due to increasing feed prices coupled with heavy pricing pressure at the grocery store. But the earnings have been far from the headlines as the company looks to close out on its sale to China's largest meat processing company. To add to the fray, 6% activist owner Starboard Value believes that the buyout offer undervalues Smithfield, and that a breakup of the company offers shareholders a better alternative. Let's take a look at both options, and try to determine where the cards are stacked.
- [By WALLSTCHEATSHEET]
Smithfield Foods is a provider of fresh and packaged meat products that are seen as a staple food item for many consumers and growing populations worldwide. The stock has seen an impressive run over the last few years and is now set to battle it out near all-time high prices. Over the last four quarters, earnings have mostly decreased while revenue figures have been mixed, regardless, investors in the company have been optimistic. Relative to its peers and sector, Smithfield Foods has been a year-to-date performance leader. Look for Smithfield Foods to OUTPERFORM.
- [By DailyFinance Staff]
Ramin Talaie/Getty Images Markets oscillated wildly Friday, but ended the day virtually unchanged, as job market data removed some uncertainty about Federal Reserve policy but worries grew about escalating tensions between the U.S. and Syria. The Dow Jones industrial average (^DJI) ended down 14 points, or 0.1 percent, at 14,922, the Standard & Poor's 500 index (^GPSC) rose less than a point to 1,655 and the Nasdaq composite index (^IXIC) added 1 point to 3,660. Stocks opened slightly higher after a weak jobs report for August bolstered hopes that the Fed may wait to cut back on its bond-buying program. The Labor Department reported that employers added 169,000 jobs last month, fewer than the 177,000 economists had forecast. It also revised downward the number of jobs added in July to 104,000, from its previous estimate of 162,000. But the market soon fell as traders worried about a standoff in Syria. Russian media reported that naval ships were en route to the country, raising worries of a wider conflict and sending stocks lower. Investors are continuing to assess the possibility of a U.S.-led strike against Syria in retaliation for an alleged chemical weapons attack against its civilians. Russian President Vladimir Putin made clear Friday that Russia didn't want to be sucked into a war over Syria, signaling that Moscow would maintain ongoing support to Damascus in the event of foreign military intervention. Energy prices have been among the most volatile on the issue, with investors concerned that military action in the Middle East will weigh on oil supplies. U.S. crude oil has spiked almost 4 percent during the past two weeks and rose 2 percent Friday. In corporate news, Smithfield Foods (SFD) fell 4 cents to $33.92 after reporting a 36 percent fall in quarterly profit, hurt by lower exports to key international markets such as Japan, China and Russia. The U.S. pork producer that has agreed to a $4.7 billion buyout by China's Shuanghui Internation
- [By Seth Jayson]
Smithfield Foods (NYSE: SFD ) is expected to report Q4 earnings on June 14. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Smithfield Foods's revenues will grow 2.2% and EPS will compress -2.3%.
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