/* Article Data (Server Side) article (o): [object Object] WSODIssue (s): |5950967|236719|41560|65138|8347540|209440|215622|9266107 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Will these financial sector stocks also see estimate-beating earnings? Link (s): http://folionation.squarespace.com/news/2014/7/18/will-these-financial-sector-stocks-also-see-estimate-beating.html Thumbnail (s): DocumentDate_raw (n): 1405698480000 DocumentDate (s): July 18, 2014 DocumentDate_smart (s): Jul 18, 2014 DocumentKey (s): 1107-290734296785734927216-61LJKFKPD2JC32O70IH1UJF8SQ ContentType (s): Article TrackingPixel (s): Content (s):

Several financial sector stocks have reported earnings that have beaten analyst estimates. Will these stocks do the same?

Blackstone Group (BX) released its second-quarter results Thursday morning, and the company's earnings of $1.15 a share surpassed the average analyst earnings estimate of $0.71 a share. In fact, the New York-based private equity firm's earnings were 61.97% higher than the estimate.

Blackstone's solid second-quarter earnings comes on the heels of other estimate-beating performances fromBank of America (BAC)Citigroup (C)Goldman Sachs (GS)JP Morgan Chase (JPM), and Morgan Stanley (MS)

All six companies had different reasons for reporting better-than-expected net income. Blackstone's largest buyout fund passed a benchmark for investment performance that allowed the company to finally collect a profit.

Bank of America, Citigroup, and JP Morgan all reported weaker second-quarter earnings than a year earlier due to legal charges, but Bank of America's net income benefitted from higher revenue from stock trading while increases in lending and commercial banking helped Citigroup and JP Morgan's profits. Goldman Sachs saw higher revenue from its investment banking and investing and lending divisions, while Morgan Stanley's money management business played a crucial role in the company's earnings. 

These estimate-beating earnings inspired us to look for investment opportunities amongst financial sector stocks that have yet to report earnings. We began with a group of stocks that have a history of positive earnings surprises. This means that they've had four straight quarters of positive, estimate-beating earnings reports, with an average surprise of at least 5%

Sticking to our earnings theme, we screened for stocks that are undervalued with a price/earnings to growth (PEG) ratio below 1. This valuation ratio is calculated by dividing a stock's price-to-earnings (P/E) ratio by its expected annual earnings per share (EPS) growth. Therefore, the higher the stock's earnings growth, the lower its PEG ratio. When a stock's PEG is under 1, it is typically considered undervalued. 

For our final screen, we decided to incorporate analyst stock recommendations since they're the ones supplying estimates for company's earnings. We looked for stocks with an average analyst recommendation of "buy" or better

We were left with eight stocks on our list. Do you think these financial sector stocks will beat earnings estimates yet again? Use this list as a starting point for your own analysis, and let us know what you think in the comments.

Click on the interactive chart to view data over time. 

 

1. AmTrust Financial Services, Inc. (AFSI, Earnings, Analysts, Financials): Operates as a multinational specialty property and casualty insurance company in the United States and internationally. Market cap at $2.66B, most recent closing price at $35.69.

 


2. Argo Group International Holdings, Ltd. (AGII, Earnings, Analysts, Financials): Underwrites specialty insurance and reinsurance products in the property and casualty market worldwide. Market cap at $1.19B, most recent closing price at $44.79.

 


3. American International Group, Inc. (AIG, Earnings, Analysts, Financials): The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. Market cap at $72.63B, most recent closing price at $49.45.

 


4. Popular, Inc. (BPOP, Earnings, Analysts, Financials): Provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. Market cap at $2.83B, most recent closing price at $27.57.

 


5. E-House (China) Holdings Limited (EJ, Earnings, Analysts, Financials): Operates as a real estate services company in China. Market cap at $1.68B, most recent closing price at $12.59.

 


6. Navigators Group Inc. (NAVG, Earnings, Analysts, Financials): Engages in the underwriting and management of property and casualty insurance in the United States, the United Kingdom, Belgium, and Sweden. Market cap at $862.43M, most recent closing price at $60.85.

 


7. Nelnet Inc. (NNI, Earnings, Analysts, Financials): Focuses on providing fee-based processing services, and education-related products and services in the areas of loan financing, loan servicing, payment processing, and enrollment services. Market cap at $1.66B, most recent closing price at $35.78.

 


8. Och-Ziff Capital Management Group LLC (OZM, Earnings, Analysts, Financials): Och-Ziff Capital Management Group LLC is a publicly owned investment manager. Market cap at $2.12B, most recent closing price at $13.50.

 


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relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): DuPont beats on profit, misses on revenue (DD) Teaser (s): Net income of $1.03B vs. $1.44B in the same quarter a year ago. Excluding pension costs and other items, operating earnings were $1.34 a share, down from $1.58 per share, the prior year. Source (s): Seeking Alpha DocumentDate (s): 13 minutes ago DocumentDate_raw (n): 1429615575000 Link (s): http://seekingalpha.com/news/2438206-dupont-beats-on-profit-misses-on-revenue DocumentKey (s): HTTPseekingalpha.com/news/2438206-dupont-beats-on-profit-misses-on-revenue DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): Wall Street's Buoyancy Intact Amid Earnings Optimism Teaser (s): (RTTNews.com) - Trading in the U.S. index futures suggests that Wall Street stocks may open higher on Tuesday, extending the rally into session. 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Source (s): Independent Online DocumentDate (s): 7 hours ago DocumentDate_raw (n): 1429587900000 Link (s): http://www.iol.co.za/business/international/wall-street-rallies-1.1847948 DocumentKey (s): HTTPwww.iol.co.za/business/international/wall-street-rallies-1.1847948 DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] WSODIssue (s): |58464|211573|241309 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Netflix at all-time highs Link (s): http://folionation.squarespace.com/news/2015/4/20/netflix-at-all-time-highs.html Thumbnail (s): DocumentDate_raw (n): 1429544280000 DocumentDate (s): April 20, 2015 DocumentDate_smart (s): 20 hours ago DocumentKey (s): 1107-290734296785735312950-53FLP3VN2NC3TPA3DNLC92L53U ContentType (s): Article TrackingPixel (s): Teaser (s):

Following its last quarterly results, shares of Netflix are in the stratosphere. Can they stay there?

Shares of Netflix (NFLX) are at all-time highs. This is in great contrast to the company’s outlook in 2011-2012. Back then, the firm relied on DVD rental, and streaming video was in its infancy. In July 2011 Netflix shocked its customer base by separating its DVD and streaming plans. This past Wedesday, the company's quarterly earnings report (pdf) made it clear that that move paid off.

Netflix grew revenue by 23.6 percent in the first quarter, while earnings were $0.77 per share. It added 2.3 million members, compared to its guidance of 1.8 million. Profit margin for streaming was 17.7 percent in the quarter.

In Canada, the company's growth is having an impact on local cable firms. A new report indicated 900,000 subscribers joined Netflix, while consumers are cutting subscriptions for cable and satellite. Firms like BCE (BCE) and Rogers Cable (RCI) will face mounting pressure. Both telecom firms are down in the last year, while Netflix is up:

Risks

Investors base the worth of Netflix on its subscriber count. Investors reason the higher the growth, the higher the valuation. The risk is that expenses fluctuate wildly. David Wells, its CFO, said cash spend could fluctuate between 20 percent and as much as 40 percent. This depends on the delivery of original product.

Netflix will have negative free cash flow for several quarters as it builds out content investments and delivers original content to its viewers.

Netflix is clearly a momentum play, and may fall at any time. For now, the bullishness is on its side, and the firm’s stock may make new highs.

Written by Chris Lau.

 

Click on the interactive chart to view data over time. 

1. BCE Inc. (BCE, Earnings, Analysts, Financials): Provides wireline voice and wireless communications services, Internet access, data services, and video services to residential, business, and wholesale customers in Canada. Market cap at $37.27B, most recent closing price at $44.12.

 

 

2. Netflix Inc. (NFLX, Earnings, Analysts, Financials): Provides subscription based Internet services for TV shows and movies in the United States and internationally. Market cap at $34.58B, most recent closing price at $571.55.

 

 

3. Rogers Communications Inc. (RCI, Earnings, Analysts, Financials): Operates as a communications and media company in Canada. Market cap at $17.67B, most recent closing price at $33.98.

 

 

(List compiled by Chris Lau. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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11 (o): [object Object] WSODIssue (s): |149870|177124|243127|271565 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Got a craving for chocolate? Link (s): http://folionation.squarespace.com/news/2015/4/17/got-a-craving-for-chocolate.html Thumbnail (s): DocumentDate_raw (n): 1429301160000 DocumentDate (s): April 17, 2015 DocumentDate_smart (s): Apr 17, 2015 DocumentKey (s): 1107-290734296785735310552-120AKVGUM6ST3A52RBM776HUNQ ContentType (s): Article TrackingPixel (s): Teaser (s):

More people want chocolate, especially overseas, and that could put pressure on the global cocoa supply. 

Nestlé (OTCMKTS: NSRGY) is up 0.6 percent for the day, as of 12:00 PM EDT Friday, following its release of better-than-expected sales results. The company forecast 5 percent sales growth in February, but skeptical analysts eyeing economic downturns in China and Brazil put their estimates at 4.2 percent.

Nestlé beat that consensus with 4.4 percent organic sales growth but missed on revenue, bringing in 20.9 billion Swiss francs (CHF) instead of the expected CHF21.2 billion. Sales grew in all regions, with emerging markets leading the charge at 6.7 percent. The strength of the Swiss franc presented a headwind that hurt revenues, but investors seem to be in a forgiving mood.

Not all is well in the chocolate kingdom, though. Hershey (HSY) is completely flat for the past year, having reported fourth-quarter earnings on January 29 that drove its shares down 4.1 percent at close. The company missed on revenue and earnings per share, which CEO John Bilbrey chalked up to changing consumer tastes, and lowered its guidance for fiscal 2015. In the company's earnings call, Bilbrey emphasized that Hershey would expand its offerings to include healthier—or healthier-sounding—products such as fruit and nut bars, in addition to offering dairy-free and non-GMO products. 

Hershey's stagnant share prices might present an opportunity for long-term investors given that the company is large and established, with a 31.4 percent US market share in candy, mint and gum.

In addition, economic slowdown aside, the long-term trend is towards increased chocolate consumption in China and other markets. Cocoa demand in China is expected to rise 5 percent every year through at least 2018.

The risk isn't so much on the demand side as the supply side. Around a quarter of the world's cocoa is grown in the Ivory Coast, and the country is very poor, with a per capita gross national income of $1,450 in 2013. It also hasn't been politically stable for long. In 2011, during the country's second civil war, President Alassane Ouattara banned the export of cocoa and coffee for nearly three months in order to deprive his rival of cash.

When these supply squeezes occur—another one in February 2014 was dubbed the "Chocolypse" by the Wall Street Journal—companies are faced with the dilemma of whether to raise prices, potentially driving away customers, or substitute non-cocoa products and market "made with chocolate" bars to appease the FDA.

The challenge ahead is how to increase production, which is difficult because cocoa trees can take years to become productive. For investors, however, the periodic hurdles faced by the industry present opportunities to buy at-crisis prices and wait for the cocoa supply to recover.

Click on the interactive chart to view data over time. 

1. The Hershey Company (HSY, Earnings, Analysts, Financials): Engages in manufacturing, marketing, selling, and distributing various chocolate and confectionery products, pantry items, and gum and mint refreshment products worldwide. Market cap at $22.45B, most recent closing price at $101.42.

 

 

2. Mondelez International Inc. (MDLZ, Earnings, Analysts, Financials): Manufactures and markets snack food and beverage products worldwide. Market cap at $61.18B, most recent closing price at $37.31.

 

 

3. Rocky Mountain Chocolate Factory Inc. (RMCF, Earnings, Analysts, Financials): Operates as a franchiser, confectionery manufacturer, and retail operator. Market cap at $84.83M, most recent closing price at $13.93.

 

 

4. Tootsie Roll Industries Inc. (TR, Earnings, Analysts, Financials): Engages in the manufacture and sale of confectionery products primarily in the United States, Canada, and Mexico. Market cap at $1.97B, most recent closing price at $33.05.

 

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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Investors on wooden computers, rejoice! Etsy is now public—but can it become a profitable public company?

It's official: Etsy (ETSY) is public. The online marketplace for arts, crafts and everything in between made its Wall Street debut on Thursday, trading at $31 a share at market open despite being priced at $16 for its IPO. Now, thanks to everyone's Etsitement, the company's valuation now stands at over $3.7 billion

But as Marketwatch's Caitlin Huston points out, profitability is a big issue for Etsy. The 10-year-old company has yet to make a profit and even said it may never actually do so in its SEC S-1 filing. Then again, Amazon (AMZN) spent nearly 18 years as a public company before posting its first profit. And that didn't stop the stock's rise—Amazon is trading at $386.13 a share, up 2044 percent from its IPO price of $18. 

Then there's the retail sales problem. Consumer spending finally ramped up in March after months of weak sales due to the coldest/not coldest winter's drag on American shopping. But economists were disappointed by last month's 0.9 percent increase in retail (including e-commerce) and restaurant sales, which they expected to be higher since cheaper gas means more money in the wallet. 

It's true, consumers do have more money on hand, but they're putting it in savings and using it to pay off credit card debt instead. Etsy isn't struggling with sales, however. The site dominates the niche arts-and-crafts market and is pretty much the go-to place for anyone who wants to sell something they've made. According to the company's S-1 filing, Etsy vendors made $1.93 billion in gross merchandise sales in 2014, up 43.3 percent from 2013. Etsy's own revenue rose by 56.4 percent year-over-year to $195.6 million last year.

It remains to be seen if Etsy can thrive despite its profitability problem. Not all retailers have that issue, though. Below is a list of Etsy's fellow specialty retailers that have reported rising profits (diluted normalized earnings per share) over the last three years. All but one of the companies have brick-and-mortar locations in addition to their online stores, which is something Etsy conspicuously lacks. 

Click on the interactive chart to view data over time. 

1. HSN Inc. (HSNI, Earnings, Analysts, Financials): Markets and sells a range of third party and private label merchandise primarily in the United States. Market cap at $3.41B, most recent closing price at $64.87.

Diluted normalized EPS increased from 1.69 to 2.1 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS increased from 2.1 to 2.55 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS increased from 2.55 to 3.25 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31).

 

2. Sally Beauty Holdings Inc. (SBH, Earnings, Analysts, Financials): Engages in the distribution and retail of professional beauty supplies. Market cap at $5.17B, most recent closing price at $32.66.

Diluted normalized EPS increased from 1.06 to 1.4 during the first time interval (12 months ending 2012-09-30 vs. 12 months ending 2011-09-30).

For the second time interval, diluted normalized EPS increased from 1.4 to 1.48 (12 months ending 2013-09-30 vs. 12 months ending 2012-09-30).

And for the last time interval, the EPS increased from 1.48 to 1.51 (12 months ending 2014-09-30 vs. 12 months ending 2013-09-30).

 

3. Tractor Supply Company (TSCO, Earnings, Analysts, Financials): Operates retail farm and ranch stores in the United States. Market cap at $11.80B, most recent closing price at $86.45.

Diluted normalized EPS increased from 1.12 to 1.5 during the first time interval (53 weeks ending 2011-12-31 vs. 52 weeks ending 2010-12-25).

For the second time interval, diluted normalized EPS increased from 1.5 to 1.9 (52 weeks ending 2012-12-29 vs. 53 weeks ending 2011-12-31).

And for the last time interval, the EPS increased from 1.9 to 2.32 (52 weeks ending 2013-12-28 vs. 52 weeks ending 2012-12-29).

 

4. ULTA Salon Cosmetics & Fragrance Inc. (ULTA, Earnings, Analysts, Financials): Provides prestige, mass, and salon products; and salon services in the United States. Market cap at $9.86B, most recent closing price at $153.56.

Diluted normalized EPS increased from 1.16 to 1.9 during the first time interval (52 weeks ending 2012-01-28 vs. 52 weeks ending 2011-01-29).

For the second time interval, diluted normalized EPS increased from 1.9 to 2.68 (52 weeks ending 2013-02-02 vs. 52 weeks ending 2012-01-28).

And for the last time interval, the EPS increased from 2.68 to 3.15 (52 weeks ending 2014-02-01 vs. 52 weeks ending 2013-02-02).

 

5. Vitamin Shoppe Inc. (VSI, Earnings, Analysts, Financials): Operates as a specialty retailer and direct marketer of nutritional products. Market cap at $1.19B, most recent closing price at $39.60.

Diluted normalized EPS increased from 1.09 to 1.55 during the first time interval (52 weeks ending 2011-12-31 vs. 52 weeks ending 2010-12-25).

For the second time interval, diluted normalized EPS increased from 1.55 to 2.03 (52 weeks ending 2012-12-29 vs. 52 weeks ending 2011-12-31).

And for the last time interval, the EPS increased from 2.03 to 2.26 (52 weeks ending 2013-12-28 vs. 52 weeks ending 2012-12-29).

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. EPS data sourced from Yahoo! Finance. All other data sourced from FINVIZ.)

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ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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13 (o): [object Object] WSODIssue (s): |39677|79756|141320|197606|82867067|267875|268937|286571 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): 15 on 15: the minimum wage fight rages on Link (s): http://folionation.squarespace.com/news/2015/4/15/15-on-15-the-minimum-wage-fight-rages-on.html Thumbnail (s): DocumentDate_raw (n): 1429126740000 DocumentDate (s): April 15, 2015 DocumentDate_smart (s): Apr 15, 2015 DocumentKey (s): 1107-290734296785735308032-1HESCV5LKI67F76N6UTHOS9JBI ContentType (s): Article TrackingPixel (s): Teaser (s):

Protesters across the globe are demanding better pay for hourly workers. What companies are affected?

If you work at Gravity Payments in Seattle, you were just guaranteed a raise. After reading up on the relationship between employees' pay and happiness, Gravity Payments CEO David Price concluded that no one at his company should make less than $70,000 a year. Nor, for that matter, does he feel the need to make any more than that.

Having identified the universal compensation sweetspot, he'll be adjusting pay packages accordingly until, in about three years, Gravity Payments becomes that talking rainbow unicorn of the American economy: a company where the ratio between the CEO's pay and the lowliest worker's is 1.

We can't all be so lucky. 

The #FightFor15 campaign has organized protests across the country on Wednesday, April 15, and sympathizers from New Zealand to Brazil to Estonia are coming out in support.

These #15on15 rallies mainly target McDonald's (MCD) restaurants. The flagging burger-monger, which saw a 15 percent decline in operating income in the last quarter of 2014, actually did announce that it would raise its minimum wage on April 1, but there's a catch—or catches.

First, the raise only applies to corporate employess, who number around 90,000, and not to the employees of McDonald's franchise owners, who number 750,000. Second, this 10-ish percent only gets a 10-ish percent raise, to an average of $9.90 an hour. Needless to say, the #FightFor15 crowd is unimpressed.

Wal-Mart (WMTannounced in February that it would raise its minimum starting wage to $9 an hour. Economist Paul Krugman wrote that the move was more politically motivated than anything else. Drawing parallels with the post-WWII "Great Compression," he claimed that a nationwide change in the minimum wage would not come about through market forces alone, and that an increase at the federal level would not lead to catastrophe. 

Council on Foreign Relations Director of International Economics Benn Steil and analyst Dinah Walker have argued that the pressures are economic, not political, and that Wal-Mart is having trouble retaining staff with wages far below the retail sector average.

Below is a list of companies that have recently announced or implemented raises in their minimum wage. So if HR at Gravity Payments doesn't get back to you, at least you have a couple of fallbacks. 

Click on the interactive chart to view data over time. 

1. Aetna Inc. (AET, Earnings, Analysts, Financials): Operates as a diversified health care benefits company in the United States. Market cap at $37.66B, most recent closing price at $107.88.

This month, Aetna is increasing it base hourly wage for US employees to $16 an hour. 

 

2. Costco Wholesale Corporation (COST, Earnings, Analysts, Financials): Operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. Market cap at $65.78B, most recent closing price at $149.52.

Costco’s starting hourly wage is $11.50 per hour. 

 

3. The Gap Inc. (GPS, Earnings, Analysts, Financials): Operates as a specialty retailing company. Market cap at $17.27B, most recent closing price at $41.15.

Gap will increase its base hourly wage for US workers to $10 an hour in June. 

 

4. McDonald's Corp. (MCD, Earnings, Analysts, Financials): Operates as a foodservice retailer worldwide. Market cap at $93.79B, most recent closing price at $97.58.

See article.

 

5. Shake Shack Inc. (SHAK, Earnings, Analysts, Financials): Owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States, the District of Columbia, North America, Europe, and Asia. Market cap at $2.17B, most recent closing price at $59.93.

Shake Shack pays New York City employees $10 an hour and employees elsewhere $9.50, in addition to providing generous benefits. 

 

6. Target Corp. (TGT, Earnings, Analysts, Financials): Operates general merchandise stores in the United States. Market cap at $53.63B, most recent closing price at $83.57.

Target is raising its minimum wage to $9 an hour this month. 

 

7. The TJX Companies Inc. (TJX, Earnings, Analysts, Financials): Operates as an off-price apparel and home fashions retailer in the United States and internationally. Market cap at $45.98B, most recent closing price at $67.28.

Employees at T.J. Maxx, Marshalls, HomeGoods and Sierra Trading Post will earn at minimum $9 per hour beginning in June. 

 

8. Wal-Mart Stores Inc. (WMT, Earnings, Analysts, Financials): Operates retail stores in various formats worldwide. Market cap at $258.57B, most recent closing price at $80.15.

See article.

 

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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14 (o): [object Object] WSODIssue (s): |54201|100281|7041722|273612|40339818 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Zynga's old CEO put out to pasture: is the game maker a buy? Link (s): http://folionation.squarespace.com/news/2015/4/14/zyngas-old-ceo-put-out-to-pasture-is-the-game-maker-a-buy.html Thumbnail (s): DocumentDate_raw (n): 1429034580000 DocumentDate (s): April 14, 2015 DocumentDate_smart (s): Apr 14, 2015 DocumentKey (s): 1107-290734296785735306555-4V9SQS6EQHCJ5KH1OI8AVCP5VL ContentType (s): Article TrackingPixel (s): Teaser (s):

Zynga has announced its CEO's departure, driving shares down. Is the stock compelling at the current price?

Zynga’s (ZNGA) stock is falling on hard times. Its stock fell another 10 percent last week after the company announced CEO Don Mattrick's departure. The company's founder, Mark Pincus, will step back into his former role. The move might be problematic for shareholders, because the company’s future is not as bright.

Zynga falls

Zynga’s stock is down 39.8 percent over a one-year period. Investors betting on Zynga’s rebound might find support in the company's balance sheet. It has around $1.01 per share in cash and no debt. On the other hand, buying Zynga has risks: cash flow was negative for the last three fiscal years. 

 

Investors interested in exposure to the gaming market might be better served considering Glu Mobile (GLUU), which is finding success signing celebrities like Katy Perry and Kim Kardashian on, or traditional game makers.

Activision (ATVI) is releasing a new Guitar Hero title for the first time since 2011. The company says it's aimed for a "fresh start," with a new look that simulates the experience of playing a live show, a new catalogue and new gameplay. EA (EA) was the world's number one publisher on PlayStation 4 and Xbox One consoles in 2014, driven by its FIFA, NHL, Madden NFL and other titles. Take-Two Interactive (TTWO), which just released Grand Theft Auto V for PC, is up 109.1 percent in the past year.

Written by Chris Lau. â€‹â€‹

Click on the interactive chart to view data over time. 

1. Activision Blizzard Inc. (ATVI, Earnings, Analysts, Financials): Activision Blizzard, Inc. publishes online, personal computer (PC), console, handheld, and mobile games of interactive entertainment worldwide. Market cap at $16.48B, most recent closing price at $22.79.

 

 

2. Electronic Arts Inc. (EA, Earnings, Analysts, Financials): Develops, markets, publishes, and distributes game software and content for video game consoles, personal computers, mobile phones, tablets and electronic readers, hand held game players, and the Internet. Market cap at $17.77B, most recent closing price at $57.33.

 

 

3. Glu Mobile Inc. (GLUU, Earnings, Analysts, Financials): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. Market cap at $547.62M, most recent closing price at $5.08.

 

 

4. Take-Two Interactive Software Inc. (TTWO, Earnings, Analysts, Financials): Develops, and distributes interactive entertainment software, hardware, and accessories worldwide. Market cap at $2.09B, most recent closing price at $24.74.

 

 

5. Zynga Inc. (ZNGA, Earnings, Analysts, Financials): Develops, markets, and operates online social games as live services played on the Internet, social networking sites, and mobile platforms in the United States, Asia, and Europe. Market cap at $2.25B, most recent closing price at $2.47.

 

(List compiled by Chris Lau. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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15 (o): [object Object] WSODIssue (s): |14726969|232548|45304692 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Prescription drug spending reached a record high last year Link (s): http://folionation.squarespace.com/news/2015/4/14/prescription-drug-spending-reached-a-record-high-last-year.html Thumbnail (s): DocumentDate_raw (n): 1429031220000 DocumentDate (s): April 14, 2015 DocumentDate_smart (s): Apr 14, 2015 DocumentKey (s): 1107-290734296785735306474-7H27GUNUTD67RSFNQ6ENJU1AT6 ContentType (s): Article TrackingPixel (s): Teaser (s):

Specialty drugs led Americans to push down and turn their way to record prescription drug spending.

Greater demand for specialty drugs and higher drug prices pushed US prescription drug spending up 13.1 percent to an unprecedented $374 billion in 2014.

According to a report from research firm IMS Institute for Healthcare Informatics, a record 4.3 billion prescriptions were filled last year. Obamacare played an important role in driving up that number: the report reveals patients filled 25.4 percent more prescriptions in states with Medicaid expansion and only 2.8 more prescriptions in states without expanded eligibility. Take note, GOP.

Spending on specialty drugs—medication for chronic or serious conditions—grew by 26.5 percent, making it 2014's biggest mover. The bulk of the growth came from the $11.4 billion Americans spent on four new hepatitis C treatments. And these new hepatitis C treatments are expensive. Take Gilead Sciences' (GILD) Solvadi and Harvoni—the drugs sell for $1000 and $1125 a pill, respectively. 

However, as more people take the drugs and more companies develop alternatives so they can enjoy some of those billions, it's likely the prices and demand for these costly hepatitis C treatments will go down. IMS Health Research Director Michael Kleinrock told the Los Angeles Times that he doesn't expect prescription drug spending to surge in a similar way this year, though he noted it "may be too early to tell."

For those who are bullish on prescription drug spending's 2015 prospects, below is a list of drugmakers that manufacture specialty drugs for a variety of conditions, from Parkinson's to chronic migraines. Each of the stocks had quarter-over-quarter (Q/Q) growth in sales of 25 percent or greater, which could be an indicator of positive sales trends.

Additionally, the stocks all have encouraging sources of profitability per the return on equity-analyzing DuPont equation. Each stock's increase in profits stems from an increase in profit margin and total asset turnover from the most recent quarter (MRQ). If the stocks' profitability came from growth in financial leverage, that would be viewed negatively. 

Click on the interactive chart to view data over time. 

 

1. Impax Laboratories Inc. (IPXL, Earnings, Analysts, Financials): Engages in the development, manufacture, and marketing of bioequivalent pharmaceutical products. Market cap at $3.50B, most recent closing price at $50.09.

Sales growth Q/Q at 30.30%.

MRQ net profit margin at 0.09% vs. -9.55% y/y.

MRQ sales/assets at 0.122 vs. 0.101 y/y.

MRQ assets/equity at 1.216 vs. 1.231 y/y.

Makes Parkinson's medication.

 

2. POZEN Inc. (POZN, Earnings, Analysts, Financials): Develops products for the treatment of acute and chronic pain, and other pain-related conditions in the United States. Market cap at $261.52M, most recent closing price at $8.02.

Sales growth Q/Q at 110.60%.

MRQ net profit margin at 70.98% vs. -46.68% y/y.

MRQ sales/assets at 0.196 vs. 0.132 y/y.

MRQ assets/equity at 1.079 vs. 1.986 y/y.

Makes chronic migraine medication.

 

3. Supernus Pharmaceuticals Inc. (SUPN, Earnings, Analysts, Financials): Focuses on the development and commercialization of specialty products for the treatment of central nervous system diseases in the United States. Market cap at $582.42M, most recent closing price at $13.07.

Sales growth Q/Q at 199.00%.

MRQ net profit margin at 14.16% vs. -216.94% y/y.

MRQ sales/assets at 0.224 vs. 0.093 y/y.

MRQ assets/equity at 1.927 vs. 3.317 y/y.

Makes epilepsy medication.

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. DuPont data sourced from Google Finance. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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*/ Will these financial sector stocks also see estimate-beating earnings?

Will these financial sector stocks also see estimate-beating earnings?

Several financial sector stocks have reported earnings that have beaten analyst estimates. Will these stocks do the same?

Blackstone Group (BX) released its second-quarter results Thursday morning, and the company's earnings of $1.15 a share surpassed the average analyst earnings estimate of $0.71 a share. In fact, the New York-based private equity firm's earnings were 61.97% higher than the estimate.

Blackstone's solid second-quarter earnings comes on the heels of other estimate-beating performances fromBank of America (BAC), Citigroup (C), Goldman Sachs (GS), JP Morgan Chase (JPM), and Morgan Stanley (MS). 

All six companies had different reasons for reporting better-than-expected net income. Blackstone's largest buyout fund passed a benchmark for investment performance that allowed the company to finally collect a profit.

Bank of America, Citigroup, and JP Morgan all reported weaker second-quarter earnings than a year earlier due to legal charges, but Bank of America's net income benefitted from higher revenue from stock trading while increases in lending and commercial banking helped Citigroup and JP Morgan's profits. Goldman Sachs saw higher revenue from its investment banking and investing and lending divisions, while Morgan Stanley's money management business played a crucial role in the company's earnings. 

These estimate-beating earnings inspired us to look for investment opportunities amongst financial sector stocks that have yet to report earnings. We began with a group of stocks that have a history of positive earnings surprises. This means that they've had four straight quarters of positive, estimate-beating earnings reports, with an average surprise of at least 5%. 

Sticking to our earnings theme, we screened for stocks that are undervalued with a price/earnings to growth (PEG) ratio below 1. This valuation ratio is calculated by dividing a stock's price-to-earnings (P/E) ratio by its expected annual earnings per share (EPS) growth. Therefore, the higher the stock's earnings growth, the lower its PEG ratio. When a stock's PEG is under 1, it is typically considered undervalued. 

For our final screen, we decided to incorporate analyst stock recommendations since they're the ones supplying estimates for company's earnings. We looked for stocks with an average analyst recommendation of "buy" or better. 

We were left with eight stocks on our list. Do you think these financial sector stocks will beat earnings estimates yet again? Use this list as a starting point for your own analysis, and let us know what you think in the comments.

Click on the interactive chart to view data over time. 

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1. AmTrust Financial Services, Inc. (AFSI, Earnings, Analysts, Financials): Operates as a multinational specialty property and casualty insurance company in the United States and internationally. Market cap at $2.66B, most recent closing price at $35.69.

 

2. Argo Group International Holdings, Ltd. (AGII, Earnings, Analysts, Financials): Underwrites specialty insurance and reinsurance products in the property and casualty market worldwide. Market cap at $1.19B, most recent closing price at $44.79.

 

3. American International Group, Inc. (AIG, Earnings, Analysts, Financials): The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. Market cap at $72.63B, most recent closing price at $49.45.

 

4. Popular, Inc. (BPOP, Earnings, Analysts, Financials): Provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. Market cap at $2.83B, most recent closing price at $27.57.

 

5. E-House (China) Holdings Limited (EJ, Earnings, Analysts, Financials): Operates as a real estate services company in China. Market cap at $1.68B, most recent closing price at $12.59.

 

6. Navigators Group Inc. (NAVG, Earnings, Analysts, Financials): Engages in the underwriting and management of property and casualty insurance in the United States, the United Kingdom, Belgium, and Sweden. Market cap at $862.43M, most recent closing price at $60.85.

 

7. Nelnet Inc. (NNI, Earnings, Analysts, Financials): Focuses on providing fee-based processing services, and education-related products and services in the areas of loan financing, loan servicing, payment processing, and enrollment services. Market cap at $1.66B, most recent closing price at $35.78.

 

8. Och-Ziff Capital Management Group LLC (OZM, Earnings, Analysts, Financials): Och-Ziff Capital Management Group LLC is a publicly owned investment manager. Market cap at $2.12B, most recent closing price at $13.50.

 

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AmTrust Financial Services, Inc.(AFSI, Chart, Download SEC Filings)Argo Group International Holdings, Ltd.(AGII, Chart, Download SEC Filings)American International Group, Inc.(AIG, Chart, Download SEC Filings)Popular, Inc.(BPOP, Chart, Download SEC Filings)E-House (China) Holdings Limited(EJ, Chart, Download SEC Filings)Navigators Group Inc.(NAVG, Chart, Download SEC Filings)Nelnet Inc.(NNI, Chart, Download SEC Filings)Och-Ziff Capital Management Group LLC(OZM, Chart, Download SEC Filings)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

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