With traditionally high debt levels and a struggle for profitability, airlines rarely come to mind when one thinks of value investments. But when some players in an industry are unloved by the market, their stock prices can become temporarily depressed. Here we will look at two airlines that fit an undervalued profile.
Unnecessary discount
The news surrounding US Airways (NYSE: LCC ) recently has almost entirely centered on the airline's proposed merger with American Airlines parent company AMR (NASDAQOTH: AAMRQ ) . While this merger would play a major role in shaping the future of US Airways (which would become American Airlines Group upon the merger), the results of the trial determining whether the airlines can merge are not do-or-die.
While US Airways has strong potential upside from a successful completion of the AMR merger, I see US Airways as having limited downside based upon the airline's strong cash and earnings positions. Trading for a price-to-earnings ratio under 7, US Airways has enough earnings to theoretically support the current share price on its own.
Hot Machinery Stocks To Watch Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By WWW.DAILYFINANCE.COM]
David Paul Morris/Bloomberg via Getty Images Family Dollar Stores (FDO) rejected a $9 billion buyout offer from Dollar General (DG) and issued a sharp rebuke to accusations its CEO favors a smaller bid from Dollar Tree (DLTR) because it would allow him to keep his job. Family Dollar, the second-largest dollar store in the United States, said it believed a deal with its larger rival would be unlikely to win antitrust approval despite a promise by Dollar General to close up to 700 stores.
We will not jeopardize the Dollar Tree deal for a transaction with Dollar General that has a high likelihood of not closing due to antitrust considerations.
Hot Valued Stocks To Own Right Now: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By David Smith]
It's now two to one among the big oil-field services companies regarding the North American oil and gas markets. Through Monday, Schlumberger (NYSE: SLB ) , the largest company in the sector had expressed concern about the market and its short-term prospects, while Halliburton (NYSE: HAL ) , the second-biggest member of the group, joined Baker Hughes (NYSE: BHI ) in assessing our continent's activity levels more positively.
- [By Seth Jayson]
Schlumberger (NYSE: SLB ) reported earnings on July 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Schlumberger met expectations on revenues and beat expectations on earnings per share. - [By Holly LaFon]
Schlumberger (SLB) was a top performer during the quarter, continuing its strong performance since the summer of 2012. Since late June 2012 (6/22) through mid-颅��April 2014, the stock (a holding since late September 2011) is up approximately 60% -颅��nearly double the S&P 500 Index's gain of 36%. Schlumberger continues to do what it does best ��dominate their respective industry and generate industry-颅��leading growth and cash flow generation. The Company is a leading global provider of oil services. At the risk of repeating an oil service industry clich茅, "the easy oil has been found." The technological development being brought to bear to the extremes and complexities in the exploration and development of hydrocarbon energy is relentless. The Company's depth and breadth of their integrated products and services has been at the forefront of the unceasing progress of energy services for decades. Indeed, according to the Company, over the past decade, total E&P capital expenditures have increased by 400%, yet global oil production is up only a scant 15%. Furthermore, in just the last three years, the upstream E&P industry has spent on average $600 billion per year yielding only a net increase in global oil production coming from the shale deposits in North American. Due to the significant advancements in horizontal drilling and multistage fracking natural gas prices are generally one-颅��hird of what they are in Europe or Asia. This differential has had 2 profound implications, for instance in the U.S. chemical industry. Chevron Phillips just this month broke ground on a $6 billion ethane cracker plant in Texas ��the first petrochemical refinery built in the U.S. in twenty-颅��ive years. Circa-颅��014 finds the Company at the cutting edge in the continued search for unconventional oil and gas, plus in the environmentally challenging area in offshore and deepwater. The Company continues to enhance their capabilities, scale and integra
- [By David Smith]
Big and not so big at your service
In the services sector, perhaps the most difficult to comprehend of the sub-sectors, you likely have a good handle on the kingpin, Schlumberger (NYSE: SLB ) . The company, with a $100 billion market cap, operates in about 85 countries, through the efforts of more than 100,000 employees. Its services include everything from soup to nuts, or seismic to production assistance. So, if you're looking for an ideal company to constitute a single proxy for the services contingent, Schlumberger's a good bet.
Hot Valued Stocks To Own Right Now: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Anders Bylund]
Other anomalies include Caterpillar (NYSE: CAT ) falling 7% on slow investments in global infrastructure construction. Thanks to the CAT's large share price, this move dragged the Dow down by 47 points. For a sense of scale, that's more than the 40 points that Cisco Systems (NASDAQ: CSCO ) brought to the table -- with a huge 27% move to the upside. Cisco's long-term vision of dominance across the data center is finally coming together and the market is responding strongly. But like I said, this 27% jump makes less of a difference to the Dow than Caterpillar's much smaller 7% move.
- [By Johanna Bennett]
Alcoa (AA) rose 3.8% to $9.59 after Goldman Sachs upgraded the stock to a Buy from a Neutral. Caterpillar (CAT) rose 2.3% to $84.80 after Bank of America Merrill Lynch upgraded the stock to a Buy from a Neutral and�increased its price target to $100 from $87.
- [By Rick Munarriz]
Caterpillar (NYSE: CAT )
Let's talk construction equipment. Caterpillar is the major player in construction and mining equipment. From backhoes to excavators, Caterpillar is responsible for a lot of moving ground. - [By Chris Hill]
Caterpillar's (NYSE: CAT ) �first-quarter profit�fell 45% and the company lowered guidance. But its CEO said that his confidence is at a two-year high and sales in China rose. Should investors buy the stock? In this installment, our analysts discuss Caterpillar's future and explain why Ritchie Bros. Auctioneers (NYSE: RBA ) could be a hidden winner.
Hot Valued Stocks To Own Right Now: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Ben Levisohn]
Shares of Herbalife have gained 0.9% to $79.51 this morning in pre-open trading. Its shares have gained 139% this year, a nice gain, but lagging Nu Skin Enterprises 271% rise. Avon Products�(AVP), another multi-level marketer, has gained 21% so far this year, while Tupperware Brands�(TUP) has risen 49%.
- [By James Brumley]
CSCO stock might be one of the market’s dark-horse stories of 2014; the dividend yield is the icing on the cake.
Dividend Stocks to Buy: Tupperware Brands (TUP)Dividend Yield: 3.2%
- [By John Udovich]
Everyone is familiar with�the Tupperware brand from�consumer products stock Tupperware Brands Corporation (NYSE: TUP) and you are probably familiar with the brands�of mid cap stock Jarden Corp (NYSE: JAH) along with small cap stocks Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT); but what about the stocks themselves? Chances are, their brands or products are right under your nose at home and you probably don�� know anything about the mid cap or small cap stock behind them.
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