Hot Safest Stocks To Own Right Now


Citigroup’s Robert Morris and David Zutter explain why they upgraded Encana (ECA) to Buy from Neutral:

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Deep Resource Base To Drive Strong Liquids Growth
We project EnCanas total organic production will increase at a ~12% CAGR for 2016 through 2021 with organic oil/liquid volumes increasing at a ~20% CAGR. This growth will be largely driven by the Permian and Montney with Encana’s ‘Top Four’ output (~70% of current total) doubling while the total production mix transitions to ~48% from ~35% liquids in 2021, absent any major non-core asset sales. This growth outlook assumes Encana ramps to 10 rigs in the Permian by 2018 and drills ~2,000 premium return locations in its ‘Top Four’ plays. However, this outlook is above EnCanas recent top-level indication that it will drill ~1,500 premium locations and post a ~10% CAGR for total production through 2021 under its Base Case price deck of flat $55/$3.00.

Hot Safest Stocks To Own Right Now: Sina Corporation(SINA)


Advisors’ Opinion:

  • [By Monica Gerson]

    SINA Corp (NASDAQ: SINA) is projected to post a quarterly loss at $0.05 per share on revenue of $189.47 million.

    Eldorado Gold Corp (USA) (NYSE: EGO) is expected to post a quarterly loss at $0.01 per share on revenue of $188.91 million.

Hot Safest Stocks To Own Right Now: American Express Company(AXP)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Shares of American Express (AXP) opened up 3% this morning after reporting a big earnings beat but have since given back a big chunk of those gains. Credit Suisse analyst Moshe Orenbuch and Serena Hong explain why its earnings weren’t necessarily as good as they looked:


    Reuters

    American Expressreported 1Q16 EPS of $1.45 ($1.50 excluding restructuring charge), beating our forecast of $1.27 and consensus estimates of $1.33…

    Billed business growth accelerated on an FX adjusted basis, we believe, as a result of the extra day in the quarter as well as faster new account growth since mid-2015. However, the company indicated that a significant percentage of the ~2 million excess new accounts were converted Costco cardmembers who could switch to the Citi Costco card which carries higher rewards when those cards are mailed in June.


    Revenues and expenses helped: Revenues were up 2% y/y and up 4% y/y on an FX adjusted basis and was helped by the leap year as well as spending from new accounts. Expenses were up 5% y/y, including the $84MM of restructuring charges, and the $127mm JetBlue sale gain. Management noted that there would be less “excess spending” than previously guided and 2Q operating expenses are expected to be down significantly as Amex books its gain from the US Costco sale. Long-term, revenue growth will still be negatively impacted by discount rate pressure, and credit costs will be rising.


    Shares of American Express have gained 1% to $65.69 at $11:37 a.m. today, while Costco Wholesale (COST) has dropped 0.9% to $151.40, and JetBlue Airways (JBLU) is off 2.4% at $20.48.

  • [By Spencer White]

    American Express Company (NYSE: AXP) held its annual Investor’s Day event Thursday, hoping to reassure investors spooked by the company’s loss of the Costco Wholesale Corporation (NASDAQ: COST) co-brand account, and its announcement of $1 billion in cost reductions last month. The credit card market has squeezed AmEx, as its higher swipe fees face intense competitive pressure.

  • [By Ben Levisohn]

    Synchrony Financial (SYF) tumbled 13% yesterday after the credit-card issuer said it was seeing more bad loans, an announcement that also rocked Discover Financial Services (DFS), Capital One Financial (COF) and American Express (AXP). Jefferies analyst John Hecht and team call the plunge in Synchrony Financial “an attractive entry point”:

Hot Safest Stocks To Own Right Now: Union Pacific Corporation(UNP)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Clinton 15 stock basket (DBUSCLNT): UnitedHealth Group (UNH), Humana (HUM), McKesson (MCK), Aecom (ACM), Quanta Services (PWR), ExxonMobil (XOM), Alcoa (AA), NextEra Energy (NEE), Cree (CREE), First Solar (FSLR), Facebook (FB), Netflix (NFLX), Prudential Financial (PRU), Citigroup (C), Union Pacific (UNP).

  • [By Manikandan Raman]

    Expecting a rebound in fundamentals, Bernstein maintains its Outperform rating on Union Pacific Corporation (NYSE: UNP) despite a third-quarter EPS miss and cautious commentary on pricing.

Hot Safest Stocks To Own Right Now: Randgold Resources Limited(GOLD)


Advisors’ Opinion:

  • [By SEEKINGALPHA.COM]

    Thus we are still extremely cautious in gold as we are a bit worried about next week’s job report being positive and knocking gold down, but we maintain our core positions in gold. But we aren’t looking to re-establish any of our sold gold and silver positions just yet until we see more of a pullback in the metals or a bad jobs report and thus we think investors should hold off or lighten up on gold positions in the ETF’s and miners such as the SPDR Gold Trust ETF (NYSEARCA:GLD), ETFS Physical Swiss Gold Trust ETF (NYSEARCA:SGOL), iShares Silver Trust (NYSEARCA:SLV), and miners such as Randgold (GOLD) and Barrick Gold (NYSE:ABX).

Hot Safest Stocks To Own Right Now: City Holding Company(CHCO)

Advisors’ Opinion:

  • [By Monica Gerson]

    City Holding Company (NASDAQ: CHCO) is expected to report its quarterly earnings at $0.74 per share on revenue of $42.04 million.

    Compass Minerals International, Inc. (NYSE: CMP) is projected to post its quarterly earnings at $1.33 per share on revenue of $347.03 million.

Hot Safest Stocks To Own Right Now: Rockwell Medical Technologies Inc.(RMTI)

Advisors’ Opinion:

  • [By Lisa Levin]

    Thursday morning, the healthcare sector proved to be a source of strength for the market. Leading the sector was strength from Keryx Biopharmaceuticals (NASDAQ: KERX) and Rockwell Medical Inc (NASDAQ: RMTI).

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