Tag Archives: ROLL

New York State Common Retirement Fund Has $6.20 Million Stake in RBC Bearings Incorporated (NASDAQ:R

New York State Common Retirement Fund trimmed its holdings in RBC Bearings Incorporated (NASDAQ:ROLL) by 6.6% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 31,075 shares of the industrial products company’s stock after selling 2,194 shares during the period. New York State Common Retirement Fund’s holdings in RBC Bearings were worth $6,197,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Kayne Anderson Rudnick Investment Management LLC lifted its position in shares of RBC Bearings by 4.3% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,058,042 shares of the industrial products company’s stock valued at $404,962,000 after buying an additional 84,953 shares during the last quarter. Wasatch Advisors Inc. lifted its position in shares of RBC Bearings by 1.5% in the first quarter. Wasatch Advisors Inc. now owns 1,671,881 shares of the industrial products company’s stock valued at $328,977,000 after buying an additional 25,291 shares during the last quarter. Fred Alger Management LLC lifted its position in shares of RBC Bearings by 46.3% in the first quarter. Fred Alger Management LLC now owns 1,244,398 shares of the industrial products company’s stock valued at $244,860,000 after buying an additional 394,017 shares during the last quarter. Clearbridge Investments LLC increased its stake in shares of RBC Bearings by 23.3% during the first quarter. Clearbridge Investments LLC now owns 878,522 shares of the industrial products company’s stock worth $172,867,000 after purchasing an additional 165,748 shares during the period. Finally, Conestoga Capital Advisors LLC increased its stake in shares of RBC Bearings by 0.9% during the second quarter. Conestoga Capital Advisors LLC now owns 785,181 shares of the industrial products company’s stock worth $156,581,000 after purchasing an additional 7,015 shares during the period. 87.96% of the stock is owned by institutional investors.

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In other RBC Bearings news, CEO Michael J. Hartnett sold 18,900 shares of the firm’s stock in a transaction on Monday, June 14th. The stock was sold at an average price of $201.04, for a total transaction of $3,799,656.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. In the last 90 days, insiders have sold 44,640 shares of company stock worth $8,903,976. Corporate insiders own 2.70% of the company’s stock.

RBC Bearings stock opened at $229.64 on Friday. The stock’s fifty day moving average price is $216.61 and its two-hundred day moving average price is $203.35. RBC Bearings Incorporated has a one year low of $113.40 and a one year high of $250.52. The company has a debt-to-equity ratio of 0.01, a current ratio of 8.23 and a quick ratio of 4.36. The firm has a market cap of $5.84 billion, a PE ratio of 62.06 and a beta of 1.38.

RBC Bearings (NASDAQ:ROLL) last posted its quarterly earnings data on Thursday, August 5th. The industrial products company reported $1.04 EPS for the quarter, topping the Zacks’ consensus estimate of $1.00 by $0.04. RBC Bearings had a return on equity of 8.16% and a net margin of 15.27%. Sell-side analysts expect that RBC Bearings Incorporated will post 4.49 earnings per share for the current fiscal year.

A number of brokerages have recently weighed in on ROLL. Truist increased their target price on RBC Bearings from $175.00 to $225.00 and gave the stock a “hold” rating in a research note on Tuesday, July 27th. They noted that the move was a valuation call. Zacks Investment Research lowered RBC Bearings from a “buy” rating to a “hold” rating and set a $211.00 target price on the stock. in a research note on Tuesday, July 6th.

About RBC Bearings

RBC Bearings, Inc engages in the design, manufacture, and marketing of engineered precision bearings and products. It operates through the following segments: Plain Bearings, Roller Bearings, Ball Bearings and Engineered Products. The Plain Bearings segment produces self-lubricating, metal-to-metal designs and other sub-classes, including rod end bearings, spherical plain bearings, and journal bearings.

Further Reading: Understanding Market Liquidity

Want to see what other hedge funds are holding ROLL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for RBC Bearings Incorporated (NASDAQ:ROLL).

Institutional Ownership by Quarter for RBC Bearings (NASDAQ:ROLL)

Top Gold Stocks For 2019

Gold futures saw muted trade early Wednesday, trading near its six-month closing low as the U.S. dollars strength weighed on the precious metal.

August gold
GCQ8, -0.04%
was little changed, up 10 cents, or less than 0.1%, at $1,260 an ounce after etching out its lowest finish since Dec. 15, according to FactSet data. The dollar-pegged commodity has been on a persistent downtrend lately, with bullion down 0.8% so far this week and on pace for a monthly decline of 3.4%.

Top Gold Stocks For 2019: Community Trust Bancorp, Inc.(CTBI)

Advisors’ Opinion:

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on Community Trust Bancorp (CTBI)

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

  • [By Joseph Griffin]

    Community Trust Bancorp, Inc. (NASDAQ:CTBI) reached a new 52-week high and low on Wednesday . The stock traded as low as $52.30 and last traded at $52.10, with a volume of 1141 shares trading hands. The stock had previously closed at $52.05.

Top Gold Stocks For 2019: RBC Bearings Incorporated(ROLL)

Advisors’ Opinion:

  • [By Motley Fool Staff]

    RBC Bearings (NASDAQ:ROLL) Q4 2018 Earnings Conference CallMay. 30, 2018 11:00 a.m. ET

    Contents:
    Prepared Remarks Questions and Answers Call Participants
    Prepared Remarks:

    Operator

  • [By Dan Caplinger]

    You don’t have to make entire aircraft in order to benefit from the huge gains in demand in the aerospace industry. Even though plane makers tend to get a lot more attention, the parts and components that go into them play a key role, and RBC Bearings’ (NASDAQ:ROLL) precision components and bearings are essential for its aerospace, defense, and industrial customers to reach their own production and sales goals. Now that it’s getting more demand across its customer spectrum than it did in past years, RBC is optimistic that things will improve from here.

  • [By Shane Hupp]

    Shares of RBC Bearings Incorporated (NASDAQ:ROLL) have earned an average rating of “Buy” from the six brokerages that are covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $140.67.

Top Gold Stocks For 2019: Citigroup Inc.(BLW)

Advisors’ Opinion:

  • [By Stephan Byrd]

    First Foundation Advisors reduced its position in shares of Blackrock Limited Duration (NYSE:BLW) by 8.4% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 322,389 shares of the investment management company’s stock after selling 29,591 shares during the period. First Foundation Advisors owned approximately 0.87% of Blackrock Limited Duration worth $4,862,000 as of its most recent SEC filing.

Top Gold Stocks For 2019: Amgen Inc.(AMGN)

Advisors’ Opinion:

  • [By Logan Wallace]

    Intact Investment Management Inc. grew its holdings in Amgen (NASDAQ:AMGN) by 2,737.5% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 45,400 shares of the medical research company’s stock after purchasing an additional 43,800 shares during the period. Intact Investment Management Inc.’s holdings in Amgen were worth $7,739,000 as of its most recent filing with the Securities & Exchange Commission.

  • [By ]

    Amgen (NASDAQ: AMGN) for example, announced FDA approval of its heart-attack prevention therapy on Dec 1. Immediately after, the stock popped 15% in less than two months, moving from $177.20 to $199.

  • [By Chris Lange]

    Amgen Inc. (NASDAQ: AMGN) saw its short interest fall to 9.79 million shares from the previous level of 10.46 million. Shares were last seen at $170.00, in a 52-week trading range of $152.16 to $201.23.

  • [By Max Byerly]

    Amgen (NASDAQ: AMGN) and aTyr Pharma (NASDAQ:LIFE) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

  • [By ]

    This week we get our first look at quarterly numbers from major drug and biotech giants such as AbbVie (ABBV)  , Amgen (AMGN)  , Biogen (BIIB) , Biomarin Pharmaceuticals (BMRN)  and Action Alerts PLUS holding Eli Lilly (LLY) , which all provide the market a glimpse of how the first quarter was for the industry over the next few days,” according to Real Money Pro columnist Bret Jensen.

Top Gold Stocks For 2019: CAE Inc(CAE)

Advisors’ Opinion:

  • [By Logan Wallace]

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

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

  • [By Shane Hupp]

    Arotech (NASDAQ: ARTX) and CAE (NYSE:CAE) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

  • [By Shane Hupp]

    CAE (TSE:CAE) (NYSE:CAE) had its target price upped by investment analysts at CIBC from C$24.00 to C$27.00 in a note issued to investors on Monday. CIBC’s price objective points to a potential upside of 1.12% from the company’s current price.

Top Gold Stocks For 2019: Reading International Inc(RDI)

Advisors’ Opinion:

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on Reading International, Inc. Class A (RDI)

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

  • [By Max Byerly]

    Get a free copy of the Zacks research report on Reading International (RDI)

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

Top Growth Stocks For 2019

Mettler-Toledo International (MTD) soared to the top of the S&P 500 today after beating earnings forecasts and offering upbeat guidance.

Getty Images

Mettler-Toledo gained 6.7% to $462.67 today, while the S&P 500 rose 0.7% to 2,297.42.

Wells Fargo analystsTim Evans andSara Silverman call it “another very strong quarter” for Mettler-Toledo but contend its too expensive to be buying now:

Mettler-Toledoreported a strong revenue and EPS beat driven by broad strength across the portfolio as well as a benefit from ongoing operational initiatives contributing to the bottom line. The company also raised 2017 revenue and EPS guidance on stronger organic growth as well as a benefit on the bottom line from the new FASB accounting rule for stock options, partially offset by stronger FX headwinds.Mettler-Toledo continues to be the most consistent performer in our coverage universe–a factor for which investors have been willing to pay a premium multiple. We have admittedly been wrong to sit on the sidelines, and Mettler-Toledo’s continued execution in the face of choppy end markets makes us acutely aware of our error. That stated, the stock’s near-peak multiple continues to keep us from jumping in.

Top Growth Stocks For 2019: Calumet Specialty Products Partners L.P.(CLMT)

Advisors’ Opinion:

  • [By Reuben Gregg Brewer]

    Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) is attempting to shift gears as it refocuses around higher-margin refined chemicals products. The plan sounds good on paper, and the independent refiner appears to be making progress. However, after a doubling of the price over the past year, most investors need to think carefully before jumping on this bandwagon. Here’s why.

  • [By Lisa Levin]

    Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is estimated to report quarterly loss at $0.36 per share on revenue of $757.65 million.

    Pointer Telocation Ltd. (NASDAQ: PNTR) is projected to report quarterly earnings at $0.22 per share on revenue of $20.22 million.

  • [By Maxx Chatsko]

    Two turnaround stocks drawing attention from investors are propane distributor Ferrellgas Partners L.P. (NYSE:FGP) and specialty refiner Calumet Specialty Products Partners LP (NASDAQ:CLMT). They’ve had very different trajectories in the last year, with the former losing 35% and the latter gaining 108%. However, the biggest problem facing each business is the same: suffocating debt.

  • [By Lisa Levin] Gainers
    Boot Barn Holdings, Inc. (NYSE: BOOT) rose 15.6 percent to $25.40 in pre-market trading after the company reported upbeat results for its fourth quarter and issued strong first-quarter earnings guidance.
    Abaxis, Inc. (NASDAQ: ABAX) rose 15.3 percent to $82.75 in pre-market trading. Zoetis Inc. (NYSE: ZTS) announced plans to acquire Abaxis for $83 per share in cash.
    Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) rose 12.6 percent to $8.95 in pre-market trading after reporting Q1 results.
    Micro Focus International plc (NYSE: MFGP) shares rose 8.8 percent to $18.59 in the pre-market trading session after the company issued strong revenue forecast for the first fiscal half of 2018.
    HC2 Holdings, Inc. (NASDAQ: HCHC) rose 5.6 percent to $6.60 in pre-market trading.
    Eleven Biotherapeutics, Inc. (NASDAQ: EBIO) shares rose 5.3 percent to $2.79 in pre-market trading. Eleven Biotherapeutics posted a Q1 loss of $0.11 per share.
    Imprimis Pharmaceuticals Inc (NASDAQ: IMMY) rose 5.2 percent to $2.52 in pre-market trading after reporting a first-quarter sales beat.
    Red Violet, Inc. (NASDAQ: RDVT) rose 4.1 percent to $10.35 in pre-market trading after climbing 75.31 percent on Tuesday.
    Xenon Pharmaceuticals Inc (NASDAQ: XENE) rose 3.8 percent to $6.90 in pre-market trading. The stock rose over 10 percent Tuesday after reporting its Phase 1 clinical update on XEN901 demonstrated a favorable PK profile.
    Sea Limited (NYSE: SE) rose 3.5 percent to $11.01 in pre-market trading after reporting Q1 results.
    Teva Pharmaceutical Industries Limited (NYSE: TEVA) shares rose 3.4 percent to $20.98 in pre-market trading after Buffett's Berkshire more than doubled its stake in Teva.
    China Internet Nationwide Financial Services Inc. (NASDAQ: CIFS) shares rose 3.7 percent to $31.30 in pre-market trading after the company reported results for its fourth quarter.
    PetIQ Inc (NASDAQ: PETQ) shares rose 3.4 percent to $20.00 in pre-market t

Top Growth Stocks For 2019: Nabors Industries Ltd.(NBR)

Advisors’ Opinion:

  • [By Logan Wallace]

    Nabors Industries (NYSE:NBR) was the recipient of a significant drop in short interest in April. As of April 30th, there was short interest totalling 39,104,204 shares, a drop of 6.2% from the April 13th total of 41,702,268 shares. Currently, 11.5% of the shares of the stock are short sold. Based on an average trading volume of 6,716,985 shares, the days-to-cover ratio is presently 5.8 days.

  • [By Tyler Crowe]

    The most frustrating kind of investment out there is one that looks to have potential, but continues to squander it. Nabors Industries (NYSE:NBR) is an example of this kind of company, and its most recent earnings report was another instance of why it is so vexing.

Top Growth Stocks For 2019: RBC Bearings Incorporated(ROLL)

Advisors’ Opinion:

  • [By Shane Hupp]

    Shares of RBC Bearings Incorporated (NASDAQ:ROLL) have earned an average rating of “Buy” from the six brokerages that are covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $140.67.

  • [By Max Byerly]

    Get a free copy of the Zacks research report on RBC Bearings (ROLL)

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

10 Stocks to Short as China Hits Back

U.S. equity markets have been much choppier so far in 2018, to say the least. Volatility has doubled. February saw the first market correction in two years. And since then, U.S. stocks have swung back and forth, with a number of big one-day moves along the way.

One of the more recent catalysts of the market’s nervousness has been an increasing fear of a trade war. What started with tariffs on imported aluminum and steel could end … well, anywhere. Given that the U.S. and China alone traded over $650 billion in goods and services, a tit-for-tat escalation could hurt both economies. And should other countries get involved, the worldwide impact could be severe.

All that said, the market hasn’t exactly plunged so far. And I tend to agree with James Brumely, who on this site called from some much-needed perspective on the confrontation. Trade alone isn’t a reason to flee the U.S. equity market, and it isn’t enough of a reason, alone, to sell or short a specific stock. Stocks like Deere & Company (NYSE:DE), Caterpillar Inc. (NYSE:CAT) and Boeing Co (NYSE:BA) are obvious short targets, but they have already have sold off, and perhaps too far.

But for these 10 stocks, trade fears add to an already-existing short case. For investors who see trade war risk as a real possibility, all 10 can provide hedges against long positions, or aggressive short bets. And for investors more sanguine on a tariff battle, there’s still enough reason elsewhere to at least consider taking a short position.

Stocks to Short: Wynn Resorts (WYNN) Wynn Resorts, Limited (WYNN) Stock Gets Hit by the Fundamentals, Not #MeToo Source: Aurlmas via Flickr (Modified)

To be sure, it would take a tremendous escalation for trade issues to hit Wynn Resorts, Limited (NASDAQ:WYNN). So at the moment, the risk of WYNN getting caught in the crossfire of a U.S.-China confrontation looks slim.

That said, the risk also could be enormous. Wynn’s concession in Macau expires in 2022. If China truly wanted to take a scalp, Wynn, Las Vegas Sands Corp. (NYSE:LVS), and MGM Resorts International (NYSE:MGM) all could potentially be at risk of being replaced.

Even a lesser action like adding additional concessions to the additional six in Macau could have a significant competitive impact on revenue and profits. And Wynn would be most at risk in this scenario, as it generates the greatest share of its earnings in Macau relative to its two other U.S.-based counterparts.

Again, that is a doomsday — and still relatively unlikely — scenario. But even some re-pricing of that risk could hit Wynn stock. And that’s not the company’s only problem in the region. As the Macau Daily Times (an English-language paper) reported, the sexual harassment allegations surrounding former CEO Steve Wynn present a risk to the company’s concession renewal.

Steve Wynn’s complete exit from the company may ameliorate that problem. But there’s also the risk that a trade war could hit the Chinese economy — and slow the stream of high rollers visiting Wynn’s properties in the enclave and driving baccarat profits on the Vegas Strip.

Add to that the possibility of a sale of its unfinished Massachusetts property and even rumors of a tie-up with MGM aren’t likely to keep WYNN afloat. And if any of the negative scenarios here actually play out, Wynn stock easily could tumble 20% or more.

Stocks to Short: RBC Bearings (ROLL) Stocks to Short: RBC Bearings (ROLL)Source: Shutterstock

The short case for RBC Bearings Incorporated (NASDAQ:ROLL) in this environment has a couple of different aspects. The first is that the company is a major supplier to the aerospace industry, which drives roughly two-thirds of revenue. So with Boeing stock one of the biggest victims of trade war fears, ROLL should have similar exposure of its own.

The second is that RBC has a good deal of exposure to steel prices, which could hit its margins. Normally, RBC has been able to pass increases along to customers, but Boeing and others may not pay up if it has its own margin concerns to worry about. The other one-third of ROLL revenue comes from industrial companies in construction and mining, oil and gas, heavy truck and rail, among other sectors. Those customers, too, could feel some pain from higher tariffs, and rising costs, making pass-through pricing difficult in that segment as well.

Meanwhile, ROLL hasn’t taken much of a hit yet and it looks rather expensive. While BA stock trades at less than 20x forward EPS, ROLL is at a whopping 26x. Profit growth really hasn’t been that impressive the last few years; instead, investors are pricing in what the company expects to be a strong performance starting in the second half of this year. But if margin pressure gets in the way – and RBC already has disappointed on that front in the past – growth will disappoint, and that premium multiple will come down.

RBC doesn’t have much of a short interest — barely 1% of the float — and it has held its valuation for some time. But the chart of late looks weaker, and if trade fears do ramp up, ROLL seems likely to head down.

Stocks to Short: Harley-Davidson (HOG) Stocks to Short: Harley-Davidson (HOG)Source: Crysis Rubel via Flickr (Modified)

Harley-Davidson Inc (NYSE:HOG) already was a heavy short target before the events of the last few weeks. That’s still the case, with almost 15% of the float sold short. And those shorts are winning, with HOG down nearly 17% YTD after a disappointing Q4 earnings report in late January.

I wrote ahead of that report that Harley-Davidson was riding into irrelevance, and I still believe that to be the case. Sales are stagnant even in a growing economy. The idea that millennials are going to buy loud, unsafe Harleys strikes me as somewhere between overly optimistic and delusional. To be fair, Harley-Davidson has struggled with the strong dollar, but even as the yen has strengthened, competitors like Yamaha Motor Co., Ltd. (OTCMKTS:YAMHF) are having success.

Trade concerns only add to an already-solid short case here, even with HOG trading at a ‘cheap’ 11x forward EPS multiple.

Harley-Davidson has admitted it could see a “significant impact” on sales in the case of rising tariffs. The European Union already has targeted the company in response to the initial steel and aluminum tariffs. HOG stock didn’t need any more bad news, but considering its debt, higher input costs, and lower sales, there’s a combination for a very severe downturn in Harley-Davidson stock, particularly if trade wars escalate.

Stocks to Short: Cloud Peak Energy (CLD) Stocks to Short: Cloud Peak Energy (CLD)Source: Via Stock Snap

President Trump has made no secret of his desire to help coal companies, and he has already taken steps toward that goal. But a battle with China very well may do more harm than good — and impact coal stocks like Cloud Peak Energy Inc. (NYSE:CLD).

It’s China whose demand actually has driven higher U.S. coal exports of late. But China could pull the rug out on that growth. China clearly has targeted Trump’s base in its initial response — and that could lead to either tariffs on coal and/or a pivot to other suppliers like Australia and Indonesia.

As the weakest publicly traded producer, that makes CLD worth a look from the short side. Cloud Peak is reliant on thermal coal, unlike, say, Arch Coal Inc (NYSE:ARCH), whose coking coal is used in steel production. Demand for thermal coal (used for power production) is in a long-term decline both in the U.S. and abroad, no matter how the Administration tries to help.

Heading into 2018, Cloud Peak was expecting a ~20% increase in exports in 2018 — without that demand, sales and profits are likely to fall. The stock already has fallen 44% just since mid-January, as investor sentiment clearly has turned negative.

Adjusted EBITDA was stable in 2017 after a significant decline the year before – but a rebound looks unlikely. With a concerning high debt load, and borrowing costs of 12%, there’s a potential for a restructuring down the line. (Both Arch and Peabody Energy Corporation (NYSE:BTU) have recently emerged from bankruptcy themselves.) Any pressure from a trade war could accelerate that timeline — and provide 100% return to a short.

Stocks to Short: LSI Industries (LYTS) Stocks to Short: LSI Industries (LYTS)Source: Shutterstock

Admittedly, LSI Industries, Inc. (NASDAQ:LYTS) is an out-of-the-box short here. The case for shorting LYTS perhaps isn’t quite as strong, and comes down more to a potential trade ahead of the company’s first quarter report later this month.

But LSI, who manufactures lighting and signage for retail companies (among them gas stations), does have exposure to trade fears in a number of ways. The first is in terms of input cost inflation. Per the company’s 10-K, raw materials account for 60% of the company’s cost of sales. And the cost of those raw materials already is rising — climbing 5-6% in fiscal 2017, with inflation continuing into calendar 2018.

So far, LSI has been able to offset those hikes with internal improvements. Indeed, LYTS stock soared after a strong fiscal Q2 report in January. But the pressure may be rising. And with China a major manufacturer of LED lighting, tariffs could disrupt that supply chain for LSI as well.

At the same time, the overall lighting market remains weak. And retrofitting spend may come down further if LSI customers see reason to be nervous about the broader economy. With LYTS trading at a mid-teen EBITDA multiple, the combination of slowing (or negative) revenue growth and higher costs could lead to an ugly fiscal Q3. And it could send LYTS down big, particularly if that EBITDA margin drops toward 10-12x.

Stocks to Short: Callaway Golf (ELY) Stocks to Short: Callaway Golf (ELY)Source: Shutterstock

Callaway Golf Co (NYSE:ELY) is another short based on the thesis that raw material costs will rise. Callaway obviously has substantial sensitivity to metal prices — steel in particular — which could affect margins.

And that would be a problem for Callaway, because its sales growth simply isn’t that torrid. The company expects just 2-3% revenue growth in 2018, outside of help from a recent acquisition. Callaway has done a phenomenal job of late taking market share, including in golf balls, but flat end markets suggest any pricing pressure could be an issue long-term.

Meanwhile, ELY stock is hardly cheap, trading at roughly 25x the midpoint of 2018 EPS guidance. Add to that potential pressure in the Chinese market itself – Asia ex-Japan drove 6% of 2017 sales – and there’s a case to make a quick buck on the short side from ELY. Moderate EPS growth projections just a bit and cut the EPS multiple down to a still-hefty 20-22x and Callaway stock drops as much as 20%.

Stocks to Short: PolyOne (POL) Stocks to Short: PolyOne (POL)Source: Via LyondellBasell

Keeping with the input cost theme, PolyOne Corporation (NYSE:POL) may be an under-the-radar victim of tariffs. The specialty chemical manufacturer already is struggling with pricing pressure, leading to weakness coming out of its Q4 earnings report in January. China’s initial tariff list included 44 chemicals, which raised alarms in the petrochemical industry served by PolyOne.

So far, PolyOne has been able to offset the pricing pressure, with 2017 the company’s eighth straight year of adjusted EPS growth. But a multi-year economic recovery has helped, and consensus expectations of 15% EPS growth this year look too high.

Here, too, there’s a case for a combination effect of both lower margins and lower sales. And while POL isn’t particularly expensive at 15x forward EPS, the cyclical nature of the space generally leads to low multiples. It’s not hard to see POL stumbling at some point this year, which at least could send the stock back toward the mid-30s range at which it traded last year — roughly 20% downside from current levels.

Stocks to Short: Campbell’s Soup (CPB) Stocks to Short: Campbell's Soup (CPB)Source: Meal Makeover Moms via Flickr (Modified)

As I’ve written several times in the past, I don’t particularly like the CPG (consumer packaged goods) space. Within that space, Campbell Soup Company (NYSE:CPB) looks like one of the weakest offerings – and an attractive short on its own.

Indeed, 12% of CPB’s float already is sold short. And with the stock down by one-third from 2016 levels, the shorts have been right so far. I don’t think that trade is over yet, either.

Campbell’s is the most indebted among major food companies. Investors were unimpressed with the company’s expensive acquisition of Snyder’s-Lance, and soup sales are falling. CPB may look cheap on an EPS basis, but including the debt its EV/EBITDA multiple still is in line with faster-growing companies. And that debt could pressure the stock if Campbell’s can’t execute a turnaround over the next couple of quarters.

On top of all of that, Campbell’s aluminum prices are going to rise – as the company itself has said. And with little room for the company to raise prices in a brutal grocery space, that could further pressure margins.

More broadly, Campbell Soup hardly seems a good business at the moment. It’s a low-growth giant at a time when smaller, nimbler companies are winning in food. All told, CPB still looks like a short. And to hedge that short, investors can go long J M Smucker Co (NYSE:SJM), which has a few of the same category risks and much, much better rewards.

Stocks to Short: Tiffany (TIF) Tiffany & Co. (TIF) Stock Looks Risky at These Elevated Levels Source: Shutterstock

Tiffany & Co. (NYSE:TIF) could have a very real problem if a trade war escalates. Growth already is pretty tepid, with the company’s Q4 sales and full-year outlook both disappointing investors last month. TIF stock still looks reasonably expensive, at 22.5x the midpoint of that EPS guidance. As both Luke Lango and Will Healy argued on this site, Tiffany already looked like an avoid at best.

The company is struggling with its engagement ring business. Millennials aren’t interested. But the company’s one clear growth engine was…China. China represented roughly 60% of the company’s Asia-Pacific sales in 2017, according to the 10-K. That’s about 16% of the company’s total sales. And the Asia-Pacific region was the one bright spot in terms of 2017 sales, with 8% constant-currency growth, most of which came from China.

Take that growth driver away – whether through tariffs, regulation, or anti-American sentiment from Chinese customers – and Tiffany starts to look a low-growth dinosaur. And that’s not a profile that is going to garner a 20x+ EPS multiple. TIF stock has bounced largely on turnaround hopes and the growth opportunity in Asia. If one of those two pillars of the bull case crumbles, Tiffany stock is going to do the same.

Stocks to Short: La-Z-Boy (LZB) Stocks to Short: La-Z-Boy (LZB)Source: Shuttershock

The entire consumer furniture space, including La-Z-Boy Incorporated (NYSE:LZB) has been choppy at best for years now. And that’s a pretty significant concern. Given a strong U.S. economy and a solid (if not roaring) housing market, profit growth should be much more impressive than it has been, particularly the past few years.

That’s particularly true for LZB, whose 4-4-5 strategy has involved buying licensed stores and building out new locations. Yet increased marketing costs and higher raw material prices have pressured margins, and LZB shares really haven’t moved for about four years now.

The short case for LZB is that potential trade pressure will be just enough to tip earnings negative – and push the stock down into the mid-20s, at least. La-Z-Boy imports from Chinese suppliers; it could face cost inflation there. Steel prices could hurt. So could polyurethane (used for foam) if chemical tariffs are expanded.

Meanwhile, La-Z-Boy will struggle to take pricing. Wayfair Inc (NYSE:W) is competing on price (and losing money in the process). Smaller rivals Bassett Furniture Industries Inc. (NASDAQ:BSET) and Hooker Furniture Corporation (NASDAQ:HOFT) both have cited success in the motion upholstery category – the most important for La-Z-Boy.

With no debt on the balance sheet, LZB isn’t likely to plunge. But investors looking for a quick double-digit return on trade fears, or a weak fiscal Q4 report in June, should consider shorting or selling calls in LZB.

As of this writing, Vince Martin is long shares of Hooker Furniture Corporation, and has no positions in any other securities mentioned.

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