A coming $112.8 billion increase to the defense budget is going to be one of the top catalysts for drone stocks next year, and that’s great news for investors…
The Senate passed a $700 billion National Defense Authorization Act (NDAA) for 2018 on Sept. 18, 2017.
Last year’s budget earmarked $587.2 billion for military spending, with $4.61 billion for drone-related spending.
Now that the budget is getting a $112.8 billion increase for 2018, more money can be allocated to unmanned aerial vehicles.
top shares: Allegheny Technologies Incorporated(ATI)
Advisors’ Opinion:
- [By Dan Caplinger]
The stock market performed well on Tuesday, responding to steady improvement among many companies as earnings season kicked into high gear. Although political issues are likely to remain in the spotlight for some investors for the foreseeable future, many market participants are looking to economic and business issues in driving their investing decisions. Major market benchmarks finished the day with gains of 0.5% to 1%, but some stocks did much better. Among the best performers on the day were Allegheny Technologies (NYSE:ATI), II-VI (NASDAQ:IIVI), and Beazer Homes (NYSE:BZH). Below, we’ll look more closely at these stocks to tell you why they did so well.
- [By Lisa Levin]
Tuesday morning, the basic materials shares climbed by 0.95 percent. Meanwhile, top gainers in the sector included Allegheny Technologies Incorporated (NYSE: ATI), up 5 percent, and Mechel PAO (ADR) (NYSE: MTL), up 5 percent.
top shares: Citigroup Inc.(C)
Advisors’ Opinion:
- [By Elizabeth Balboa]
Here are the top 10 financial bodies investing in lobbying in 2017:
American Bankers Association: $5.6 million
Securities Industry & Financial Market Association: $3.5 million
Financial Services Roundtable: $3.0 million
Independent Community Bankers of America: $2.7 million
Association of International CPAs: $2.6 million
Citigroup Inc (NYSE: C): $2.5 million
Investment Company Institute: $2.4 million
S&P Global Inc (NYSE: SPGI): $2.4 million
Credit Union National Association: $2.4 million
HSBC Holdings plc (ADR) (NYSE: HSBC): $2.4 million
Dozens of others spent more than $1 million, including Ally Financial Inc (NYSE: ALLY), Visa Inc (NYSE: V) and Navient Corp (NASDAQ: NAVI).
- [By Brian Stoffel]
I say “purposely” because in future conference calls, several analysts — especially Greg Badishkanian of Citigroup (NYSE:C) — tried to figure out what the organic growth rates are by doing some backwards math.
- [By Ben Levisohn]
Among big bank stocks, Morgan Stanley (MS) has fallen 0.7% to $45.86, Goldman Sachs Group (GS), has slipped 0.5% to $246.40, and Citigroup (C) is off 1% at $60.83.
- [By WWW.MONEYSHOW.COM]
Citibank (C) is particularly well-positioned to benefit from these changes. The company has invested in growing its US credit-card business in recent quarters.
top shares: Teck Resources Ltd(TCK)
Advisors’ Opinion:
- [By Benzinga News Desk]
Stephens (Equal-Weight) and Citi (Sell) both downgraded Atwood Oceanics (NYSE: ATW).
Sell-Side's Most Noteworthy Calls
Investec downgraded Anheuser-Busch (NYSE: BUD) to Hold.
Deutsche Bank downgraded Freeport McMoRan (NYSE: FCX) to Hold.
Goldman Sachs upgraded Microsoft (NASDAQ: MSFT) to Buy.
Barclays upgraded Teck Resources (NYSE: TCK) to Overweight.
BTIG started Adobe (NASDAQ: ADBE) at Neutral.
Deal Talk
U.S. oil refiner Tesoro (NYSE: TSO) said it would buy Western Refining (NYSE: WNR) for $4.1 billion to add refineries in Texas, New Mexico and Minnesota. The combined company will have refining capacity of over 1.1 million barrels per day. Tesoro has refineries in California, Washington, Alaska, Utah and North Dakota.
top shares: Viking Therapeutics, Inc.(VKTX)
Advisors’ Opinion:
- [By Lisa Levin]
Losers
DBV Technologies SA – ADR (NASDAQ: DBVT) shares tumbled 50.6 percent to $23.73 after the company disclosed that its peanut allergy trial failed to meet primary endpoint.
Connecture Inc (NASDAQ: CNXR) shares declined 40.8 percent to $0.290. Connecture reported that it will voluntarily delist from the NASDAQ for OTCQX Market.
Walter Investment Management Corp (NYSE: WAC) slipped 19.2 percent to $0.410. On Friday, Walter Investment Management disclosed that it has reached an agreement with term lenders and senior noteholders on financial restructuring.
Eldorado Gold Corp (USA) (NYSE: EGO) shares dropped 15.9 percent to $1.83. Eldorado Gold lowered its production guidance for its Kisladag operation.
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) shares fell 15.4 percent to $1.04.
Future Fintech Group Inc (NASDAQ: FTFT) dropped 13.6 percent to $1.53. Future FinTech reported filing of proxy statement, including proposal for corporate restructuring.
Concordia International Corp (NASDAQ: CXRX) shares fell 12.3 percent to $0.500 after dipping 38.71 percent on Friday.
Aemetis Inc (NASDAQ: AMTX) shares declined 11.3 percent to $0.550
OncoSec Medical Inc (NASDAQ: ONCS) dipped 10.5 percent to $1.12. OncoSec reported a $7.1 million registered direct at-the-market offering at a price of $1.34375 per share.
Evoke Pharma Inc (NASDAQ: EVOK) shares fell 10.35 percent to $3.08 after the company disclosed 'positive' topline results from comparative exposure pharmacokinetic study for Gimoti.
Eiger Biopharmaceuticals Inc (NASDAQ: EIGR) shares dropped 9.4 percent to $11.60 as the company disclosed Phase 2 interim 24-week data with pegylated interferon lambda in Hepatitis Delta Virus infection at the American Association for the Study of Liver Diseases Meeting.
Viking Therapeutics Inc (NASDAQ: VKTX) shares slipped 6.6 percent to $2.80. Viking Therapeutics presented results from proof-of-concept study of VK0214 in in vivo - [By Lisa Levin]
Viking Therapeutics Inc (NASDAQ: VKTX) shares dropped 39 percent to $1.17 after the company priced 7.5 million share offering at $1.25 per share.
top shares: Hanesbrands Inc.(HBI)
Advisors’ Opinion:
- [By Paul Ausick]
Hanesbrands Inc. (NYSE: HBI) dropped about 1.2% on Wednesday to post a new 52-week low of $21.44 after closing at $21.70 on Tuesday. The stock’s 52-week high is $31.36. Volume was about half the daily average of around 2.6 million shares. The company had no specific news Wednesday.
- [By Paul Ausick]
Hanesbrands Inc. (NYSE: HBI) dropped about 0.6% on Thursday to post a new 52-week low of $21.41 after closing at $21.53 on Wednesday. The stock’s 52-week high is $31.36. Volume was about a third the daily average of around 6 million shares. The company had no specific news Thursday.
- [By Ben Levisohn]
Hanesbrands (HBI) tumbled to the bottom of the S&P 500 today after missing earnings forecasts and offering disappointing guidance.
Agence France-Presse/Getty Images
Hanesbrandsdropped 16% to $18.98 today, while the S&P 500 rose 0.7% to 2,297.42.
Stifel’s Jim Duffy and team explain what went wrong:
Structural changes in US consumer and retail trends weighed on 4Q and HBI fell short in 4Q. These trends are expected to continue in FY17 and guidance was more cautious than prevailing estimates. Given the leverage and dependence on acquisitions for growth, we view visibility to underlying free cash generation key to valuation and we are discouraged by both 2016 results which were well short of plan and the outlook for FY17 operating cash flow which is a step backwards from prior FY16 guidance. With a reduction in 2017 CFO estimates from $795mn to $690mn we are lowering our 12-month target price from $26 to $23.
Hanesbrands’ market capitalization fell to $7.2 billion today from $8.6 billion yesterday.
Hanesbrands was just one of many retail companies that got shellacked this week. Under Armour (UAA) tumbled 29% after missing earnings forecasts and cutting its guidance, while Deckers Outdoor (DECK) plunged 21% after its earnings missed the Street consensus, and Ralph Lauren (RL) plummeted 13% after its CEO stepped down.
- [By Ben Levisohn]
Today, the Wall Street Journal reported that Kate Spade & Co is considering a sale of the company, following pressure from activist investors given the volatile performance ever since Kate Spade became a mono brand company over 2 years ago. The article cites thatKate Spade has hired an investment bank and has reached out to possible buyers (including other retailers) althoughKate Spade has not responded. This comes at a time when brand houses like VF Corp. (VFC), PVH Corp. (PVH), Hanesbrands (HBI), Michael Kors Holdings (KORS), and Coach have said they are looking to make a branded acquisition, andKate Spade could be one of the strongest candidates. While other brands are seeing negative comps, pulling back on wholesale exposure or restructuring,Kate Spade continues to grow.
- [By Paul Ausick]
Hanesbrands Inc. (NYSE: HBI) dropped about 5.9% on Wednesday to post a new 52-week low of $21.50 after closing at $22.86 on Tuesday. The stock’s 52-week high is $31.36. Volume of about 31 million was more than 7 times the daily average of 4.5 million. The company had no specific news.
- [By Rich Duprey]
If a stock falls hard, particularly one with a durable name in its industry, it could be an opportunity to pick up shares on the cheap. But sometimes, a stock trades at a discount for a very good reason, so let’s take a look at Whirlpool (NYSE:WHR), Hanesbrands (NYSE:HBI), and Vista Outdoor (NYSE:VSTO) to see if they are good values at these lower prices — or just value traps.
