Charles Schwab & Co.’s chief investment strategist, Liz Ann Sonders, gave a generally positive address Sunday to Schwab Advisor Services' assembled advisors on the U.S. economy and markets Sunday evening.
She jokingly bristled over those who call her a “perma-bull,” though she admitted to having been generally bullish “since 2009.” Following Potomac Research strategist Greg Valliere’s politically focused speech at Schwab Impact 2013’s preconference session in Washington, Sonders delivered her assessment that “the market is quite cheap,” and that its outperformance last year and this one was “primarily because of corporate earnings” rather than the consensus view that the Fed’s quantitative easing was the prime driver of strong market performance.
Looking at the economy now, she said that the third-quarter GDP report was “better than expected,” noting in particular that consumer spending’s share of GDP fell in the quarter to 68% from the 71% reported in the second quarter. However, she also said that the government’s share of GDP remained stubbornly high, and that “government spending still needs to be deleveraged.”
Top 5 Growth Stocks To Invest In 2015: Wendy's/Arby's Group Inc.(WEN)
The Wendy's Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy's International, Inc., operates as a franchisor of the Wendy's restaurant system. As of December 26, 2011, the Wendy's system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1884 and is headquartered in Dublin, Ohio.
Advisors' Opinion:- [By Rick Aristotle Munarriz]
Alamy Things are going from bland to worse at McDonald's (MCD). The world's largest burger chain capped off what it rightfully classified as a "challenging" year on another ho-hum note with Thursday morning's quarterly report. Global comparable sales declined as a decline in store traffic was more than enough to offset the fact that patrons were spending more on average. The 0.1 percent downtick in worldwide comparable sales may not seem like much, but things are degrading at a more dramatic level closer to home. Stateside comps plunged 1.4 percent during the final three months of 2013. Something's just not right at McDonald's. A Quarter That Floundered Another uninspiring quarter at the fast food giant is no longer a surprise. McDonald's ended an impressive nearly 10 year streak of positive monthly comparable sales in late 2012, and business has been sluggish ever since. Opinions vary on the reasons for the iconic chain's lackluster performance. Some argue that it shouldn't have strayed from the Dollar Menu that increased its magnetism to cost-conscious diners. Others suggest that it was the push to offer higher-priced entrees and beverages -- adding premium chicken-topped salads and fancy coffee drinks to the menu -- that alienated its core customers. There may be some truth to both theories, and McDonald's has tried to address them by introducing the Dollar Menu & More late last year -- highlighting the popular low-cost offerings, but enhancing it by tacking on some higher-priced value items. The move should have rallied thrifty loyalists around the chain, but the decline in store traffic during the fourth quarter and all of 2013 is proof that it wasn't enough. A Costly Casual Culture Clash The surprising decline in traffic at McDonald's comes at a challenging time for the fast food industry. But not every burger flipper is smarting. A week earlier, Wendy's (WEN) had posted encouraging preliminary results for the same three months, with North
- [By Jake L'Ecuyer]
Top Headline
The Wendy's Co (NASDAQ: WEN) reported better-than-expected third-quarter adjusted earnings.Wendy's posted a quarterly loss of $1.9 million, or $0.00 per share, versus a year-ago loss of $26.2 million, or $0.07 per share. Its adjusted earnings per share climbed to $0.08 from $0.02.
- [By Brian Pacampara]
What: Shares of Wendy's� (NASDAQ: WEN ) climbed 10% today after the fast-food restaurant operator posted strong quarterly results and announced a plan to sell about 425 restaurants by mid-2014.�
- [By Emily Jane Fox]
McDonald's (MCD, Fortune 500) and Wendy's (WEN) have told CNNMoney that they provide opportunities to learn and grow. The National Restaurant Association contends that the demonstrations are a "coordinated PR campaign engineered by national labor groups," and that "relatively few restaurant workers have participated" in past demonstrations.
Top 10 Cheap Companies To Own In Right Now: Alliance Holdings GP L.P.(AHGP)
Alliance Holdings GP, L.P., through its subsidiaries, produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coal with varying sulfur and heat contents. The company operates nine underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. As of December 31, 2010, it had approximately 697.4 million tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, the company leases land; and operates a coal loading terminal, with a capacity of 8.0 million tons with ground storage of approximately 60,000 to 70,000 tons, on the Ohio River at Mt. Vernon, Indiana. Further, it engages in purchasing and selling coal; and providing services, including ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. Alliance GP, LLC, serves as the general partner of the company. Allian ce Holdings GP, L.P. is based in Tulsa, Oklahoma.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Alliance Holdings GP (Nasdaq: AHGP ) , whose recent revenue and earnings are plotted below.
Top 10 Cheap Companies To Own In Right Now: Bank of America Corporation(BAC)
Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, disability, and credit insurance. The company?s Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. It was formerly known as NationsBank Corporation and changed its name on October 1, 1998. Bank of America Corporation was founded in 1874 and is based in Charlott e, North Carolina.
Advisors' Opinion:- [By Steven Russolillo]
Nike Inc.(NKE), Visa Inc. and Goldman Sachs Group Inc.(GS) were added to the Dow last year in the biggest shake-up of the 30-stock index since 2004. Alcoa Inc.(AA), Hewlett-Packard Co.(HPQ) and Bank of America Corp.(BAC) were dropped.
- [By Alex Dumortier, CFA]
Bank of America still looks cheap
I've been a student of Finance and the financial markets for years, and yet I still fall into this trap. After reading the first part of the Reuters headline "Bank of America (NYSE: BAC ) profits quadruple," I immediately checked the quote page and was briefly, almost instinctively, surprised to find that the shares were down in premarket trading. I shouldn't have been; as Howard Marks writes in the excellent book The Most Important Thing: "First level thinking says, 'I think the company's earnings will fall; sell.' Second-level thinking says, 'I think the company's earnings will fall less than people expect, and the pleasant surprise will lift the stock; buy.'"
Top 10 Cheap Companies To Own In Right Now: Merck & Company Inc.(MRK)
Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company?s Pharmaceutical segment provides human health pharmaceutical products, such as therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular, diabetes and obesity, infectious diseases, neurosciences and ophthalmology, oncology, vaccines, and women's health and endocrine. This segment also offers human health vaccines, such as preventive pediatric, adolescent, and adult vaccines. Its Animal Health segment discovers, develops, manufactures, and markets animal health products. This segment offers antibiotics, anti-inflammatory products, vaccines, products for the treatment of fertility disorders, and parasiticides for cattle, swine, horses, poultry, dogs, cats, salmons, and fish. The Consumer Care segment develops, manufac tures, and markets over-the-counter, foot care, and sun care products. Its over-the-counter product line includes non-drowsy antihistamines; treatment for occasional constipation; decongestant-free cold/flu medicine for people with high blood pressure; nasal decongestant spray; and treatment for frequent heartburn. This segment?s foot care products comprise topical antifungal, and foot and sneaker odor/wetness products; and sun care products include sun care lotions, sprays and dry oils; and sunburn relief products. The company serves drug wholesalers and retailers, hospitals, government agencies, physicians, physician distributors, veterinarians, animal producers, and managed health care providers, as well as food chain and mass merchandiser outlets in the United States and Canada. Merck & Co., Inc. was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.
Advisors' Opinion:- [By Dimitra DeFotis]
Merck�(MRK) stock is up 2% today after�Merck reported second-quarter earnings per share of 85 cents, better than the 81 cents analysts expected, according to Thomson I/B/E/S data.
- [By Sean Williams]
Do insomniacs have any hope?
If you've been wondering whether insomniacs have any hope left, it just may come in the form of Merck's (NYSE: MRK ) experimental drug suvorexant. Last month suvorexant went before the FDA's panel and received a generally positive review of 12 to 4 that it was effective in maintaining sleep for patients. However, like Ambien, the FDA did echo one bit of concern about suvorexant's dosing, noting that 11% of the nearly 1,300 subjects who took higher doses of the sleep aid in trials exhibited somnolence (essentially a state of near-sleep). At lower doses, somnolence was reduced to just 7%.
Top 10 Cheap Companies To Own In Right Now: UnitedHealth Group Incorporated(UNH)
UnitedHealth Group Incorporated provides healthcare services in the United States. Its Health Benefits segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; and non-employer based insurance options for purchase by individuals. It also provides health and well-being services for individuals aged 50 and older; and for services dealing with chronic disease and other specialized issues for older individuals, as well as health plans for the beneficiaries of acute and long-term care Medicaid plans. This segment offers its services through a network of 730,000 physicians and other health care professionals, and 5,300 hospitals. Its OptumHealth segment provides health, financial, and ancillary services and products that assist consumers through personalized health management solutions; benefit administration, and clinical and network management; health-based financi al services; behavioral solutions; and specialty benefits, such as dental, vision, life, critical illness, short-term disability, and stop-loss product offerings. The company?s Ingenix segment offers database and data management services, software products, publications, consulting and actuarial services, business process outsourcing services, and pharmaceutical data consulting and research services. Its Prescription Solutions segment provides integrated pharmacy benefit management services comprising retail network pharmacy contracting and management, claims processing, mail order pharmacy services, specialty pharmacy, benefit design consultation, rebate contracting and management, drug utilization review, formulary management programs, disease therapy management, and adherence programs to employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans, and third party administrators. The company was founded in 1974 and is based in Minne tonka, Minnesota.
Advisors' Opinion:- [By Ben Levisohn]
The Dow Jones Industrials got a boost from UnitedHealth Group (UNH), which gained 2.8% to $78.77 this week, its highest close in more than one month. UnitedHealth announced this week that it would join the Illinois health exchange.
- [By Keith Speights]
Florida already announced contracts with seven managed-care organizations, including UnitedHealth Group� (NYSE: UNH ) and Amerigroup, which was acquired in 2012 by WellPoint (NYSE: WLP ) . �Medicaid managed care is a big business for both large insurers. UnitedHealth reported $16.4 billion in 2012 revenue from its business unit that handles Medicaid programs.�WellPoint doesn't break out its Medicaid revenue separately, but Amerigroup reported more than $6.4 billion in revenue during the first three quarters of 2012, of which a high percentage stemmed from Medicaid.
Top 10 Cheap Companies To Own In Right Now: Freeport-McMoran Copper & Gold Inc.(FCX)
Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.
Advisors' Opinion:- [By Selena Maranjian]
Freeport McMoRan Copper & Gold (NYSE: FCX ) shed 8% and yields about 4.5%. The world's largest publicly traded copper producer has been hurt by falling copper and gold prices, and a deadly mine disaster�in Indonesia led to the closing of one of its mines (also one of the world's biggest mines). That mine has resumed production, though not yet at full capacity. Meanwhile, slowing growth in China and labor strikes haven't helped. The company diversified its operations considerably when it bought a pair of oil and gas producers. The stock seems rather undervalued.
- [By Matt DiLallo]
It's been a challenging year for Freeport-McMoRan (NYSE: FCX ) . The company faced a number of obstacles to its now-closed acquisitions of Plains Exploration & Production and McMoRan Exploration Company. The good news, at least if you were in favor of these transactions, is that the deals are now closed and it can move forward.
- [By Doug Ehrman]
In the video below, Fool.com contributor Doug Ehrman discusses the pros and cons of four specific miners. Where Freeport-McMoRan (NYSE: FCX ) and Barrick Gold (NYSE: ABX ) each offer a different type of investment opportunity, they share a solid dividend yield. Likewise, both Newmont Mining (NYSE: NEM ) and Kinross (NYSE: KGC ) have different overall profiles, but still are worth considering from an income perspective. Ultimately, finding investment opportunities that combine yield and a solid risk-return profile is critical, and these four stocks may fit your needs.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global mining giant Freeport-McMoRan Copper & Gold (NYSE: FCX ) has earned a respected four-star ranking.
Top 10 Cheap Companies To Own In Right Now: Whole Foods Market Inc.(WFM)
Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also provides specialty products, such as beer, wine, and cheese; body care and educational products, such as books; and floral, pet, and household products. As of February 9, 2011, the company operated 302 stores in the United States, Canada, and the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.
Advisors' Opinion:- [By Jeremy Bowman]
Outside the Dow, Whole Foods (NASDAQ: WFM ) shares were flying higher, as the high-end grocery chain was up 8.2% after hours following its earnings release. The foodie favorite said earnings per share jumped to $0.76 from $0.64 a year ago and beat estimates of $0.73. Same-store sales growth was strong at 6.9%, and the company boosted its full-year earnings forecast slightly to $2.86-$2.89. Whole Foods also said it would enact a 2-for-1 stock split in the end of May.
- [By Steve Symington]
Over the past two decades, organic grocer Whole Foods Market (NASDAQ: WFM ) �has quietly proven itself to be one of the most incredible growth stories our stock market has to offer.
- [By Leslie Patton]
Whole Foods Market Inc. (WFM), the largest natural-foods grocer in the U.S., fell in extended trading yesterday after saying fiscal 2014 profit would be less than it previously forecast as same-store sales growth slows.
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