Tag Archives: SJM

Hot Performing Stocks For 2019

As strong as the economy is in many ways after our nine-year-long expansion, there are still plenty of hazards out there that can hammer good companies, and in thisMarketFoolery podcast, host Chris Hill and Motley Fool senior analyst Jeff Fischer discuss a number of them. First off, they tackle the troubles faced by iconic U.S. motorcycle manufacturer Harley-Davidson (NYSE:HOG): trade wars and the tweeted ire of President Trump.

Next, they weigh in on the major moves General Electric (NYSE:GE) is making to get out from under its long-standing problem of having grown too unwieldy to be well-managed. And finally, they look to Starbucks (NASDAQ:SBUX), which is closing underperforming stores and adjusting its growth plan to better match demand — choices that, while natural, have somewhat spooked the market.

A full transcript follows the video.

This video was recorded on June 26, 2018.

Chris Hill:It’sTuesday, June 26th. Welcome to Market Foolery!I’m Chris Hill, and thankfully, I’m joined in studio by Jeff Fischer.

Hot Performing Stocks For 2019: J.M. Smucker Company (SJM)

Advisors’ Opinion:

  • [By Demitrios Kalogeropoulos]

    The selling environment has been tough in recent years for most packaged foods companies, and J.M. Smucker’s(NYSE:SJM) latest operating results showed it isn’t immune to the wider challenges its segment faces. On Thursday, the owner of Jif, Crisco, and other popular consumer brands posted flat sales to end its fiscal 2018, with profits coming in below management’s targets.

  • [By Chris Hill]

    Hill:Nice. We haveretail earnings, we have chip earnings. We have a very interesting letter from Warren Buffett and Jamie Dimon, and we’re going to get to all those. Let’s start, though, withconsumer goods. [sighs] You can hear the resignation in my voice. J.M. Smucker (NYSE:SJM), fourth quarter profits and revenue came in lower than expected. Their guidance for the new fiscal year was weak. Thestock is down about 5%. This wholeindustry is in the doghouse right now. Consumer goods is just the worst right now.

  • [By Asit Sharma]

    J.M. Smucker (NYSE:SJM) closed out the fourth quarter of fiscal year 2018 in rather flat fashion, as a bird’s-eye view of revenue, pulled from the company’s earnings report issued Thursday morning, suggests:

  • [By Stephan Byrd]

    Traders purchased shares of The J.M. Smucker Company (NYSE:SJM) on weakness during trading on Thursday. $66.56 million flowed into the stock on the tick-up and $32.86 million flowed out of the stock on the tick-down, for a money net flow of $33.70 million into the stock. Of all stocks tracked, The J.M. Smucker had the 28th highest net in-flow for the day. The J.M. Smucker traded down ($3.14) for the day and closed at $117.04

  • [By Ethan Ryder]

    J M Smucker (NYSE:SJM) had its price target hoisted by Credit Suisse Group from $90.00 to $95.00 in a research note issued to investors on Wednesday morning. Credit Suisse Group currently has an underperform rating on the stock.

  • [By Max Byerly]

    J M Smucker (NYSE:SJM) posted its quarterly earnings data on Thursday. The company reported $1.93 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $2.18 by ($0.25), Bloomberg Earnings reports. The business had revenue of $1.78 billion for the quarter, compared to the consensus estimate of $1.80 billion. J M Smucker had a net margin of 18.19% and a return on equity of 12.20%. J M Smucker’s quarterly revenue was down .1% on a year-over-year basis. During the same period in the prior year, the business posted $1.80 EPS. J M Smucker updated its FY19 guidance to $8.40-8.65 EPS.

Hot Performing Stocks For 2019: Versum Materials, Inc. (VSM)

Advisors’ Opinion:

  • [By Logan Wallace]

    Barrow Hanley Mewhinney & Strauss LLC lowered its stake in Versum Materials (NYSE:VSM) by 0.3% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 6,309,010 shares of the basic materials company’s stock after selling 19,336 shares during the quarter. Barrow Hanley Mewhinney & Strauss LLC owned 0.06% of Versum Materials worth $237,408,000 at the end of the most recent quarter.

  • [By Max Byerly]

    Penn Capital Management Co. Inc. reduced its stake in shares of Versum Materials (NYSE:VSM) by 5.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 253,960 shares of the basic materials company’s stock after selling 15,004 shares during the quarter. Penn Capital Management Co. Inc. owned about 0.23% of Versum Materials worth $9,571,000 at the end of the most recent quarter.

  • [By Logan Wallace]

    News headlines about Versum Materials (NYSE:VSM) have been trending somewhat positive recently, Accern reports. The research group identifies negative and positive press coverage by analyzing more than 20 million blog and news sources. Accern ranks coverage of publicly-traded companies on a scale of negative one to positive one, with scores closest to one being the most favorable. Versum Materials earned a media sentiment score of 0.12 on Accern’s scale. Accern also gave media headlines about the basic materials company an impact score of 46.4354866491979 out of 100, indicating that recent press coverage is somewhat unlikely to have an impact on the stock’s share price in the next several days.

Hot Performing Stocks For 2019: Oshkosh Corporation(OSK)

Advisors’ Opinion:

  • [By Lisa Levin] Companies Reporting Before The Bell
    General Motors Company (NYSE: GM) is projected to report quarterly earnings at $1.24 per share on revenue of $34.66 billion.
    Bristol-Myers Squibb Company (NYSE: BMY) is estimated to report quarterly earnings at $0.85 per share on revenue of $5.24 billion.
    United Parcel Service, Inc. (NYSE: UPS) is expected to report quarterly earnings at $1.55 per share on revenue of $16.44 billion.
    Time Warner Inc. (NYSE: TWX) is projected to report quarterly earnings at $1.74 per share on revenue of $7.91 billion.
    ConocoPhillips (NYSE: COP) is expected to report quarterly earnings at $0.74 per share on revenue of $8.81 billion.
    PepsiCo, Inc. (NYSE: PEP) is expected to report quarterly earnings at $0.93 per share on revenue of $12.4 billion.
    American Airlines Group Inc. (NASDAQ: AAL) is estimated to report quarterly earnings at $0.72 per share on revenue of $10.42 billion.
    Southwest Airlines Co (NYSE: LUV) is expected to report quarterly earnings at $0.74 per share on revenue of $5.01 billion.
    Fiat Chrysler Automobiles N.V. (NYSE: FCAU) is estimated to report quarterly earnings at $0.8 per share on revenue of $34.52 billion.
    Union Pacific Corporation (NYSE: UNP) is projected to report quarterly earnings at $1.66 per share on revenue of $5.38 billion.
    D.R. Horton, Inc. (NYSE: DHI) is expected to report quarterly earnings at $0.85 per share on revenue of $3.76 billion.
    The Hershey Company (NYSE: HSY) is estimated to report quarterly earnings at $1.4 per share on revenue of $1.94 billion.
    Praxair, Inc. (NYSE: PX) is expected to report quarterly earnings at $1.56 per share on revenue of $2.94 billion.
    Altria Group, Inc. (NYSE: MO) is projected to report quarterly earnings at $0.92 per share on revenue of $4.63 billion.
    Shire plc (NASDAQ: SHPG) is estimated to report quarterly earnings at $3.54 per share on revenue of $3.72 billion.
    Oshkosh Corporation (NYSE: OSK) is projected to report quarter
  • [By Shane Hupp]

    Osisko Mining (TSE:OSK) Director Robert Wares purchased 10,000 shares of Osisko Mining stock in a transaction that occurred on Tuesday, May 15th. The shares were bought at an average price of C$2.06 per share, with a total value of C$20,600.00.

  • [By Ethan Ryder]

    Osisko Mining Inc (TSE:OSK) Director John Feliks Burzynski acquired 5,000 shares of the firm’s stock in a transaction dated Monday, June 11th. The stock was purchased at an average cost of C$2.08 per share, with a total value of C$10,400.00.

  • [By Ethan Ryder]

    Penn Capital Management Co. Inc. increased its position in shares of Oshkosh Co. (NYSE:OSK) by 23.3% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 71,497 shares of the company’s stock after buying an additional 13,533 shares during the quarter. Penn Capital Management Co. Inc. owned about 0.10% of Oshkosh worth $5,693,000 as of its most recent SEC filing.

Hot Performing Stocks For 2019: Telecom Argentina Stet – France Telecom S.A.(TEO)

Advisors’ Opinion:

  • [By Lisa Levin]

    Friday morning, the telecommunication services shares rose 0.75 percent. Meanwhile, top gainers in the sector included Telecom Argentina S.A. (NYSE: TEO), up 6 percent, and pdvWireless, Inc. (NASDAQ: PDVW) up 4 percent.

  • [By Steve Symington]

    But several individual companies couldn’t keep up. Read on to learn why Under Armour (NYSE:UA) (NYSE:UAA), Telecom Argentina (NYSE:TEO), and Synnex (NYSE:SNX) underperformed the market today.

  • [By Joseph Griffin]

    Telecom Argentina (NYSE:TEO) has been assigned an average recommendation of “Hold” from the nine research firms that are presently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating, two have issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $38.00.

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Telecom Argentina (TEO)

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

  • [By Ethan Ryder]

    Shares of Telecom Argentina SA (NYSE:TEO) hit a new 52-week low on Wednesday . The company traded as low as $19.62 and last traded at $19.86, with a volume of 47276 shares. The stock had previously closed at $20.61.

  • [By Joseph Griffin]

    These are some of the news headlines that may have impacted Accern Sentiment’s scoring:

    Get Telecom Argentina alerts:

    Cablevisi贸n Holding Announces First Quarter 2018 Results (finance.yahoo.com) Zacks: Analysts Anticipate Telecom Argentina (TEO) Will Post Earnings of $0.39 Per Share (americanbankingnews.com) Telecom Argentina posts double-digit gains in Q1 (seekingalpha.com) Telecom Argentina S.A. announces consolidated first quarter results for fiscal year 2018 (‘1Q18’)* (finance.yahoo.com)

    Shares of Telecom Argentina opened at $23.57 on Wednesday, Marketbeat Ratings reports. The company has a market cap of $4.30 billion, a P/E ratio of 9.86, a price-to-earnings-growth ratio of 2.31 and a beta of 1.12. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.75 and a current ratio of 0.83. Telecom Argentina has a 52-week low of $21.38 and a 52-week high of $23.56.

Hot Performing Stocks For 2019: Nuveen Preferred Income Opportunites Fund(JPC)

Advisors’ Opinion:

  • [By Ethan Ryder]

    News headlines about Nuveen Preferred & Income Oprtnts Fnd (NYSE:JPC) have trended positive this week, according to Accern Sentiment. The research group rates the sentiment of press coverage by analyzing more than 20 million news and blog sources. Accern ranks coverage of public companies on a scale of negative one to positive one, with scores closest to one being the most favorable. Nuveen Preferred & Income Oprtnts Fnd earned a media sentiment score of 0.42 on Accern’s scale. Accern also gave news coverage about the financial services provider an impact score of 48.1302177844966 out of 100, meaning that recent press coverage is somewhat unlikely to have an effect on the stock’s share price in the next few days.

Hot Performing Stocks For 2019: Capital Senior Living Corporation(CSU)

Advisors’ Opinion:

  • [By Max Byerly]

    State of New Jersey Common Pension Fund D lessened its stake in shares of Capital Senior Living (NYSE:CSU) by 5.3% in the first quarter, Holdings Channel reports. The institutional investor owned 180,000 shares of the company’s stock after selling 10,000 shares during the quarter. State of New Jersey Common Pension Fund D’s holdings in Capital Senior Living were worth $1,935,000 as of its most recent filing with the SEC.

  • [By Stephan Byrd]

    Media stories about Capital Senior Living (NYSE:CSU) have trended somewhat positive on Sunday, Accern Sentiment Analysis reports. The research firm rates the sentiment of press coverage by reviewing more than 20 million blog and news sources in real-time. Accern ranks coverage of companies on a scale of negative one to one, with scores nearest to one being the most favorable. Capital Senior Living earned a daily sentiment score of 0.01 on Accern’s scale. Accern also assigned press coverage about the company an impact score of 46.062391046142 out of 100, indicating that recent press coverage is somewhat unlikely to have an impact on the stock’s share price in the immediate future.

Top Undervalued Stocks To Own Right Now

Legal marijuana sales are expected to skyrocket 145%, from $10 billion in 2017to $24.5 billion in sales, by 2021. That’s why we’re providing Money Morning readers with the best marijuana stocks to buy ahead of this massive sales growth.

Now, we’ve been taking about the profit potential of traditional marijuana companies for years, but Money Morning Special Situation Strategist Tim Melvin has found a new way to play the sector.

You see, Melvin is always looking for a value.

And although the banking industry has been slow to do business with cannabis firms, he’s found two undervalued cannabis banking stocks.

Top Undervalued Stocks To Own Right Now: iShares Mortgage Real Estate Capped (REM)

Advisors’ Opinion:

  • [By Donald van Deventer]

    The latest implied forward rate forecast from Kamakura Corporation shows projected 10-year U.S. Treasury yields differing -0.07% to 0.03% from last week while fixed rate mortgage yields varied by -0.01% to 0.08%. Mortgage yields, determined by the Monday through Wednesday weekly survey of the Federal Home Loan Mortgage Corporation, lag Treasury movements simply because of the 3-day yield calculation used in the Primary Mortgage Market Survey. The 10-year U.S. Treasury yield is projected to rise from 2.92% at Thursday’s close (down 0.06% from last week) to 3.374% (down 0.06% from last week) in one year. The 10-year U.S. Treasury yield in ten years is forecast to reach 4.639%, 1 basis point lower than last week. The 15-year fixed rate mortgage rate is forecast to rise from the effective yield of 3.69% on Thursday (down 0.001% from last week) to 4.222% (down 0.006% from last week) in one year and 6.29% in 10 years, up 0.038% from last week. We explain the background for these calculations in the rest of this note, along with some mortgage servicing rights metrics. The forecast allows investors in exchange traded U.S. Treasury funds (TLT) (TBT), total return bond funds (BOND), municipal bonds (NUV) and exchange traded mortgage funds (REM) to assess likely total returns over the next 120 months. Treasury-related exchange traded funds affected by the forward rates include:

Top Undervalued Stocks To Own Right Now: Sorrento Therapeutics, Inc.(SRNE)

Advisors’ Opinion:

  • [By William Romov]

    San Diego-based Sorrento Therapeutics Inc. (Nasdaq: SRNE) develops drugs to treat certain types of cancer and chronic cancer pain.

    On Jan. 6, company officials will present a new proprietary technology for the treatment of cancer. Analysts are calling this new technology a potential “game-changer.”

  • [By ]

    In the Lightning Round, Cramer was bullish on Spotify (SPOT) , Alkermes (ALKS) , Johnson & Johnson (JNJ) , Thermo Fisher Scientific (TMO) , Sorrento Therapeutics (SRNE) , NVIDIA (NVDA) , Nucor, Eli Lilly (LLY) and Kohlberg Kravis Roberts (KKR) .

  • [By ]

    Sorrento Therapeutics (SRNE) : “This is the kind of speculative stock that I like.”

    Geron (GERN) : “Let’s stick with high quality like Thermo Fisher Scientific (TMO) .”

Top Undervalued Stocks To Own Right Now: J.M. Smucker Company (SJM)

Advisors’ Opinion:

  • [By ]

    The packaged food industry has been in a state of flux in recent years, according to Credit Suisse analyst Robert Moskow, as companies like J.M. Smucker Co. (SJM) , Kraft Heinz Co. (KHC) , and others increased their trade spending and made high-priced acquisitions to improve growth rates. 

  • [By Stephan Byrd]

    Traders purchased shares of The J.M. Smucker Company (NYSE:SJM) on weakness during trading on Thursday. $66.56 million flowed into the stock on the tick-up and $32.86 million flowed out of the stock on the tick-down, for a money net flow of $33.70 million into the stock. Of all stocks tracked, The J.M. Smucker had the 28th highest net in-flow for the day. The J.M. Smucker traded down ($3.14) for the day and closed at $117.04

  • [By Teresa Rivas]

    J.M. Smucker(SJM) is falling Monday, after Morgan Stanley’sMatthew Grainger and his team cut their rating on the stock, citing pricing pressures from Wal-Mart (WMT) and growing competition from private-labels.

    Getty Images

    Grainger slash Smucker to Underweight from Equal Weight, and shaved $6 off his price target, to $126. He also cites what he calls “sustained” challenges in both its coffee and pet food business, as well as“below-average strategic optionality.”

    At the same time, he also upgraded Pinnacle Foods (PF) to Overweight from Equal Weight, and raised his price target to $63 from $58, on its double-digit earnings growth and what he sees as superior execution.

    Nonetheless, he sees many of the packaged food companies in his coverage, from Smucker to Pinnacle, as subject to pressure from Wal-Mart and off-brand rivals. From the note:

    Walmart comprises ~22% of sales across our coverage, a figure that has increased in recent years even as the retailers total grocery sales have grown at an even faster 4% CAGR. With Food margins expected to expand meaningfully, we believe this only enhances Walmart’s negotiating leverage going forward. SJM, Dean Foods (DF), and General Mills (GIS) are most at risk in the current environment, in our view.

    Recent scanner data points to a positive inflection in private label trends (share up ~30 bps L12W) across a range of center-store categories, a dynamic we believe could intensify in an increasingly competitive retail grocery landscape. Our analysis of recent trends points to the most meaningful underperformance vs. private label at GIS, SJM, ConAgra (CAG), and Campbell Soup (CPB), while only PF has outperformed in recent weeks.

    Smucker is down 1.1% to $127.95 this morning, while Pinnacle is up 0.8% to %48.47.

  • [By Douglas A. McIntyre]

    The Pillsbury Doughboy is the mascot of the Pillsbury Company, which is owned by General Mills (NYSE: GIS) and J.M. Smucker (NYSE: SJM). The Doughboy was created by Pillsburys advertising agency almost 50 years ago. Pikachu are characters owned by The Pokemon Company International and appear in card games, video games, TV shows, movies and comic books. Founded in 1998, the Japanese company has achieved total games sales of almost 280 million. SpongeBob SquarePants was created for Nickelodeon, which is owned by Viacom (NASDAQ: VIA). The show premiered in 1999 and has spawned movies, video games and theme park rides. Ronald McDonald is a c

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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best upcoming stocks to invest in

SAN FRANCISCO A 2014 outing by a group of male and female Uber executives to a Korean karaokebar where women with pinned numbers were selected by male guestshas put a controversial member of the ride-hailing company’s top ranks back in the spotlight.

Emil Michael, who in the fall of that yearsuggested that the personal information of journalists who weren’t supportive of Uber be investigated, three weeks ago told a former girlfriend of CEO Travis Kalanick that she should sanitize the story of the outing, according to a report Friday in The Information.

The woman, Gabi Holzwarth, 27, said that Michael repeatedly asked her to keep details of the mid-2014 Seoul outing from reporters, including the fact that the venue featured women with numbers pinned on them. Some of the male Uber executives present selected women to drink with. Holzwarth and Kalanick left after about an hour. A female Uber marketing manager later complained to human resources about the incident. p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 11.0px Helvetica}span.s1 {font-kerning: none}

best upcoming stocks to invest in: (SHF)

Advisors’ Opinion:

  • [By Money Morning Staff Reports]

    In March 2012, Schiff Nutrition International Inc. (NYSE: SHF) acquired the company for $150 million in cash.

    The product is still on the market today, found at most local drug stores. It is advertised now, however, as a nutritional supplement that does not, if taken alone, ward off viruses.

best upcoming stocks to invest in: J.M. Smucker Company (The)(SJM)

Advisors’ Opinion:

  • [By Douglas A. McIntyre]

    The Pillsbury Doughboy is the mascot of the Pillsbury Company, which is owned by General Mills (NYSE: GIS) and J.M. Smucker (NYSE: SJM). The Doughboy was created by Pillsburys advertising agency almost 50 years ago. Pikachu are characters owned by The Pokemon Company International and appear in card games, video games, TV shows, movies and comic books. Founded in 1998, the Japanese company has achieved total games sales of almost 280 million. SpongeBob SquarePants was created for Nickelodeon, which is owned by Viacom (NASDAQ: VIA). The show premiered in 1999 and has spawned movies, video games and theme park rides. Ronald McDonald is a c

  • [By Teresa Rivas]

    J.M. Smucker(SJM) is falling Monday, after Morgan Stanley’sMatthew Grainger and his team cut their rating on the stock, citing pricing pressures from Wal-Mart (WMT) and growing competition from private-labels.

    Getty Images

    Grainger slash Smucker to Underweight from Equal Weight, and shaved $6 off his price target, to $126. He also cites what he calls “sustained” challenges in both its coffee and pet food business, as well as“below-average strategic optionality.”

    At the same time, he also upgraded Pinnacle Foods (PF) to Overweight from Equal Weight, and raised his price target to $63 from $58, on its double-digit earnings growth and what he sees as superior execution.

    Nonetheless, he sees many of the packaged food companies in his coverage, from Smucker to Pinnacle, as subject to pressure from Wal-Mart and off-brand rivals. From the note:

    Walmart comprises ~22% of sales across our coverage, a figure that has increased in recent years even as the retailers total grocery sales have grown at an even faster 4% CAGR. With Food margins expected to expand meaningfully, we believe this only enhances Walmart’s negotiating leverage going forward. SJM, Dean Foods (DF), and General Mills (GIS) are most at risk in the current environment, in our view.

    Recent scanner data points to a positive inflection in private label trends (share up ~30 bps L12W) across a range of center-store categories, a dynamic we believe could intensify in an increasingly competitive retail grocery landscape. Our analysis of recent trends points to the most meaningful underperformance vs. private label at GIS, SJM, ConAgra (CAG), and Campbell Soup (CPB), while only PF has outperformed in recent weeks.

    Smucker is down 1.1% to $127.95 this morning, while Pinnacle is up 0.8% to %48.47.

best upcoming stocks to invest in: Marsh & McLennan Companies, Inc.(MMC)

Advisors’ Opinion:

  • [By Reuters]

    Wendy Maeda/The Boston Globe via Getty Images
    NEW YORK — Walgreen is moving 120,000 employees to a private health insurance exchange from coverage provided directly from carriers, the company will announce Wednesday.
    The pharmacy chain will join 17 other large employers on the Aon Hewitt Corporate Health Exchange as part of a growing movement to offer employees fixed dollar amounts to purchase their own plans on such exchanges.
    The end-cost to employees depends on the plan chosen, but they typically get more options than under traditional arrangements. Private exchanges mimic the coverage mandated as part of the Affordable Care Act. Enrollment in the public exchanges starts Oct. 1.
    “What happens to employer contributions over time? Will they put in as much as they put in the past? These are unanswered questions but potential negatives,” says Paul Fronstin, a senior research associate with the Employee Benefit Research Institute. The benefit to Walgreen and other employers is unknown at this point, as their cost-savings aren’t clear.
    Of the 180,000 Walgreen (WAG) employees eligible for health care insurance, 120,000 opted for coverage for themselves and 40,000 family members. Another 60,000 employees, many of them working part-time, weren’t eligible for health insurance.
    Aon Hewitt (AON) says other participants in its program include retailer Sears Holding (SHLD) and Darden Restaurants (DRI). These new additions raise enrollment to 330,000 from 100,000 last year, and Aon Hewitt estimates enrollment will jump to 600,000 next year, a fivefold increase from 2012.
    By 2017, nearly 20 percent of employees nationwide could get their health insurance through a private exchange, according to Accenture Research (ACN). A recent report by the National Business Group on Health said that 30 percent of large employers are considering moving active employees to exchanges by 2015.

    Other major providers of private exchanges include Mercer, a division of Marsh & Mc

best upcoming stocks to invest in: Bayer Aktiengesellschaft (BAYRY)

Advisors’ Opinion:

  • [By SEEKINGALPHA.COM]

    A very risky Phase 3 drug for high cholesterol, anacetrapib, is listed and is in Phase 3; but several others of the class have failed, and there’s little reason to expect a success here (but you never know). Finally, a partnered heart failure drug that is also in Phase 3, vericiguat, is partnered with Bayer (OTCPK:BAYRY). This compound failed its primary endpoint in Phase 2. Yet, the partners agreed that there was hope for the highest of the three doses. Thus, I view this drug as a very high risk Phase 3 product. Maybe it will be successful and blockbuster, but it’s no sure thing.

  • [By Todd Campbell]

    Nektar Therapeutics is working with Bayer AG (NASDAQOTH:BAYRY) on an inhaledversion of Amikacin, an anti-bacterial that if successful in trials could be used alongside standard of care to treat gram-negative pneumonia in intubated and mechanically ventilated patients. If it’s eventually approved in the U.S., Nektar Therapeutics will receive a flat 30% royalty on sales. It’s also working with Bayer on an inhaled powder formulation of Cipro that could be used to treat chronic lung infections in cystic fibrosis patients. Top-line phase 3 results on both drugs should be available this year.

  • [By SEEKINGALPHA.COM]

    As the graphic below shows, ImmunoGen’s product pipeline is potentially significant. Furthermore, it is impressive to see the involvement and partnerships in these early stage compounds by some of the world’s leading pharmaceutical and biotech companies. This includes firms like Amgen (NASDAQ:AMGN), Roche (OTCQX:RHHBY), Bayer (OTCPK:BAYRY), Sanofi (NYSE:SNY), Eli Lilly (NYSE:LLY), and Novartis (NYSE:NVS).

  • [By Maxx Chatsko]

    BeforeBayer(NASDAQOTH: BAYRY)arrived onto the scene, I viewedMonsanto(NYSE: MON)as an intriguing growth stock. It has a rich history of delivering value to shareholders and continues to hold a dominant technological edge over key competitors in crop protection products, seeds, and traits. While little has changed its promising pipeline and portfolio, the pending acquisition throws a wrench in anyone’s plans to start or add to a position. Uncertainty stemming from the merger provides several terrible reasons to buy Monsanto at this time.

best upcoming stocks to invest in: Pound/Rand(PX)

Advisors’ Opinion:

  • [By Ben Levisohn]

    The last twelve months haven’t been kind to Praxair (PX) and Air Products & Chemicals (APD), but UBS analyst John Roberts and team argue that’s about to change, as they upgrade their shares to Buy from Neutral arguing that their earnings can withstand a slowing global economy:

    In our view, the two stocks are more alike than different. NTM P/Es are within ~0.5 pts of each other. Both stocks have declined ~20% from their historical highs the largest corrections in 20+ years aside from the financial crisis…

    Industrial gas stocks have normally grown through changes in FX, oil & China demand within normal historical ranges. And investor concerns around China forAir Products & Chemicals may still prove much bigger than reality. Nevertheless, the combination of FX & oil sector impacts on Praxair, and FX & China issues for Air Products & Chemicals, have been much larger than previously seen. With oil already down, the dollar already appreciated, & China concerns already heightened we believe forward basis would appear to carry only normal risks (& lower if FX & oil are mean-reverting, which some theories support).

    Normal high single digit EPS growth projected for both in 2017 vs 2016: Four large firms serve 70%+ of the global merchant gas market, and price normally contributes ~2% to growth. Customer older captive units being outsourced contributes another 2%. Secular drivers for oxygen include energy savings (i.e. O2 burns more efficiently than air), life sciences (healthcare & microbial processes) nitrogen secular drivers include increasing purity requirements (food freezing & semiconductors). Topline growth ~2x global GDP more normal, with EPS growth ~2x sales growth due to high fixed costs (key variable costs are inexpensive air & power).

    Financial crisis demand drop was only a few %, in line with global GDP drop Most chemicals volumes dropped 10%+ (some 40%

Hot Warren Buffett Stocks To Watch Right Now

Billionaire investor Warren Buffett is getting richer by the minute.

That’s because the Oracle of Omaha’s company Berkshire Hathaway Inc. (NYSE: BRK.A; BRK.B) has a portfolio full of dividend-yielding stocks.

Represented are Wells Fargo & Co. (NYSE: WFC), Coca-Cola Co. (NYSE: KO), and Kraft Heinz Co. (Nasdaq: KHC), just to name a few.

The Berkshire portfolio has 34 dividend stocks in total; of those, eight yield dividend returns in excess of 3% annually, according to Buffett’s latest SEC 13F filing on Feb. 14, 2017.

Hot Warren Buffett Stocks To Watch Right Now: J.M. Smucker Company (The)(SJM)

Advisors’ Opinion:

  • [By Douglas A. McIntyre]

    The Pillsbury Doughboy is the mascot of the Pillsbury Company, which is owned by General Mills (NYSE: GIS) and J.M. Smucker (NYSE: SJM). The Doughboy was created by Pillsburys advertising agency almost 50 years ago. Pikachu are characters owned by The Pokemon Company International and appear in card games, video games, TV shows, movies and comic books. Founded in 1998, the Japanese company has achieved total games sales of almost 280 million. SpongeBob SquarePants was created for Nickelodeon, which is owned by Viacom (NASDAQ: VIA). The show premiered in 1999 and has spawned movies, video games and theme park rides. Ronald McDonald is a c

  • [By Teresa Rivas]

    J.M. Smucker(SJM) is falling Monday, after Morgan Stanley’sMatthew Grainger and his team cut their rating on the stock, citing pricing pressures from Wal-Mart (WMT) and growing competition from private-labels.

    Getty Images

    Grainger slash Smucker to Underweight from Equal Weight, and shaved $6 off his price target, to $126. He also cites what he calls “sustained” challenges in both its coffee and pet food business, as well as“below-average strategic optionality.”

    At the same time, he also upgraded Pinnacle Foods (PF) to Overweight from Equal Weight, and raised his price target to $63 from $58, on its double-digit earnings growth and what he sees as superior execution.

    Nonetheless, he sees many of the packaged food companies in his coverage, from Smucker to Pinnacle, as subject to pressure from Wal-Mart and off-brand rivals. From the note:

    Walmart comprises ~22% of sales across our coverage, a figure that has increased in recent years even as the retailers total grocery sales have grown at an even faster 4% CAGR. With Food margins expected to expand meaningfully, we believe this only enhances Walmart’s negotiating leverage going forward. SJM, Dean Foods (DF), and General Mills (GIS) are most at risk in the current environment, in our view.

    Recent scanner data points to a positive inflection in private label trends (share up ~30 bps L12W) across a range of center-store categories, a dynamic we believe could intensify in an increasingly competitive retail grocery landscape. Our analysis of recent trends points to the most meaningful underperformance vs. private label at GIS, SJM, ConAgra (CAG), and Campbell Soup (CPB), while only PF has outperformed in recent weeks.

    Smucker is down 1.1% to $127.95 this morning, while Pinnacle is up 0.8% to %48.47.

Hot Warren Buffett Stocks To Watch Right Now: Mitel Networks Corporation(MITL)

Advisors’ Opinion:

  • [By Lisa Levin]

    ShoreTel Inc (NASDAQ: SHOR) shares shot up 28 percent to $7.47. Mitel Networks Corp (NASDAQ: MITL) announced plans to acquire Shortel for $7.50 per share in cash.

Hot Warren Buffett Stocks To Watch Right Now: Boardwalk Pipeline Partners L.P.(BWP)

Advisors’ Opinion:

  • [By Jim Robertson]

    On Friday, our Under the Radar Moversnewsletter suggested mid cap natural gas pipeline stock Boardwalk Pipeline Partners, LP (NYSE: BWP) as a bullish/long trade: