/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): LIRR: Delays continue but normal service possible by evening rush hour Teaser (s): A look at the Westbury LIRR station on Wednesday morning, Sept. 2, 2015. The Long Island Rail Road suspended service into and out of Penn Station during Wednesday morning's rush hour because of signal trouble east of the East River tunnels. Source (s): Newsday DocumentDate (s): 34 minutes ago DocumentDate_raw (n): 1441211400000 Link (s): http://www.newsday.com/long-island/nassau/lirr-limited-service-to-penn-station-restored-agency-says-cuomo-calls-for-upgrades-1.10799953 DocumentKey (s): HTTPwww.newsday.com/long-island/nassau/lirr-limited-service-to-penn-station-restored-agency-says-cuomo-calls-for-upgrades-1.10799953 DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): Bill Gross thinks Fed rate hike 'too little, too late' Teaser (s): U.S. interest rates should be raised this month, but Federal Reserve policy makers have only made it harder on themselves to finally pull the trigger, according to bond-market heavyweight Bill Gross. Source (s): MarketWatch DocumentDate (s): 34 minutes ago DocumentDate_raw (n): 1441211400000 Link (s): http://www.marketwatch.com/story/bill-gross-thinks-fed-rate-hike-too-little-too-late-2015-09-02 DocumentKey (s): HTTPwww.marketwatch.com/story/bill-gross-thinks-fed-rate-hike-too-little-too-late-2015-09-02 DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): Valeant will buy eye surgery device maker Synergetics Teaser (s): NEW YORK (AP) - Canadian drugmaker Valeant Pharmaceuticals said Wednesday it will buy eye surgery product maker Synergetics USA for as much as $192 million. Source (s): Washington Times DocumentDate (s): 46 minutes ago DocumentDate_raw (n): 1441210725000 Link (s): http://www.washingtontimes.com/news/2015/sep/2/valeant-will-buy-eye-surgery-device-maker-synerget/ DocumentKey (s): HTTPwww.washingtontimes.com/news/2015/sep/2/valeant-will-buy-eye-surgery-device-maker-synerget/ DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] WSODIssue (s): |9539574|197941|226354 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Professional and business services industry drives August job growth Link (s): http://folionation.squarespace.com/news/2015/9/2/professional-and-business-services-industry-drives-august-jo.html Thumbnail (s): DocumentDate_raw (n): 1441210620000 DocumentDate (s): September 2, 2015 DocumentDate_smart (s): 12:17 PM DocumentKey (s): 1107-290734296785735461434-331JLJMKPNL9VAR3QR29VAHDBG ContentType (s): Article TrackingPixel (s): Teaser (s):

Fewer private sector jobs were added last month, with the professional and business services industry adding the most.

The August ADP National Employment Report came out Wednesday morning, and it showed that the non-farm private sector added 190,000 jobs. While that figure was up from the 177,000 reported in July, it fell short of economists' projection of a 201,000 increase in private payrolls. 

Small businesses (under 50 employees) added 85,000 jobs, medium businesses (50 to 499 employees) added 66,000 jobs and large businesses (500 employees or more) added 40,000 employees. The services sector posted a gain of 173,000 jobs, with the professional and business services industry contributing the most jobs at 29,000.

Since professional and business services saw the biggest uptick in added jobs in August, here's a list of high-growth business services stocks that are expected to see a 25 percent-plus increase in earnings this year.

In addition, each stock has consistently topped quarterly earnings expectations over the past year, with an average earnings surprise of at least 5 percent. This doesn't mean that the stocks will necessarily meet or top the consensus estimate for full-year EPS growth, but exploring each stock's financials further could paint a more detailed picture.

Click on the interactive chart to view data over time. 

 

1. Cardtronics Inc. (CATM, Earnings, Analysts, Financials): Operates automated teller machines (ATMs) and financial services kiosks. Market cap at $1.52B, most recent closing price at $33.77.

EPS growth this year at 57.70%.

In Sept 2014: Reported EPS at $0.64 vs. estimate at $0.62 (surprise of 3.20%).

In Dec 2014: Reported EPS at $0.64 vs. estimate at $0.57 (surprise of 12.30%).

In Mar 2015: Reported EPS at $0.64 vs. estimate at $0.58 (surprise of 10.30%).

In Jun 2015: Reported $0.71 vs. estimate at $0.70 (surprise of 1.40%).

Average earnings surprise at 6.8%.

 

2. Moody's Corporation (MCO, Earnings, Analysts, Financials): Provides credit ratings and related research, data, and analytical tools; risk management software; and quantitative credit risk measures, credit portfolio management solutions, and training services in the United States, Europe, the Middle East, and Africa. Market cap at $19.91B, most recent closing price at $98.99.

EPS growth this year at 28.10%.

In Sept 2014: Reported EPS at 0.97 vs. estimate at 0.90 (surprise of 7.80%).

In Dec 2014: Reported EPS at $1.12 vs. estimate at $0.95 (surprise of 17.90%).

In Mar 2015: Reported EPS at $1.11 vs. estimate at $1.03 (surprise of 7.80%).

In Jun 2015: Reported EPS $1.28 vs. estimate at $1.22 (surprise of 4.90%).

Average earnings surprise at 9.6%.

 

3. The Priceline Group Inc. (PCLN, Earnings, Analysts, Financials): Operates as an online travel company. Market cap at $62.25B, most recent closing price at $1215.36. EPS growth this year at 26.50%.

In Sept 2014: Reported EPS at $22.16 vs. estimate at $21.11 (surprise of 5.0%).

In Dec 2014: Reported EPS at $10.85 vs. estimate at $10.10 (surprise of 7.40%).

In Mar 2015: Reported EPS at $8.12 vs. estimate at $7.72 (surprise of 5.20%).

In Jun 2015: Reported EPS $12.45 vs. estimate at $11.98 (surprise of 3.90%).

Average earnings surprise at 5.4%.

 

 

(Monthly return data sourced from Zacks Investment Research. Earnings surprise data sourced from Yahoo! Finance. 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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4 (o): [object Object] Headline (s): Drunk On Starbucks But Not Loving It At McDonald's Teaser (s): In the last month both Starbucks SBUX +1.85% and McDonald MCD +2.11% have announced menu expansions - Starbucks with the addition of Evenings at Starbucks, where they serve beer, wine, and “small plates,” and McDonald's has jumped into the fray ... Source (s): Forbes DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1441206675000 Link (s): http://www.forbes.com/sites/nikkibaird/2015/09/02/drunk-on-starbucks-but-not-loving-it-at-mcdonalds/ DocumentKey (s): HTTPwww.forbes.com/sites/nikkibaird/2015/09/02/drunk-on-starbucks-but-not-loving-it-at-mcdonalds/ DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): US Productivity Increased at Fastest Pace Since 2013 Teaser (s): WASHINGTON—U.S. worker productivity grew much more than initially thought in the second quarter, reflecting a bounce back in economic activity following a slow start to 2015. Source (s): Wall Street Journal DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1441197385000 Link (s): http://www.wsj.com/articles/u-s-productivity-increases-at-3-3-pace-in-second-quarter-1441197343 DocumentKey (s): HTTPwww.wsj.com/articles/u-s-productivity-increases-at-3-3-pace-in-second-quarter-1441197343 DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Scrutiny of Security Start-Ups May Signal Shift in Venture Funding Teaser (s): SAN FRANCISCO - A funny thing happened to Orion Hindawi while he was raising $120 million for his cybersecurity start-up last month: Investors asked him about profits. Source (s): New York Times DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1441197133000 Link (s): http://www.nytimes.com/2015/09/03/technology/scrutiny-of-security-start-ups-may-signal-shift-in-venture-funding.html DocumentKey (s): HTTPwww.nytimes.com/2015/09/03/technology/scrutiny-of-security-start-ups-may-signal-shift-in-venture-funding.html DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): US private payrolls rise steadily; productivity revised up Teaser (s): WASHINGTON U.S. private employers maintained a steady pace of hiring in August despite recent global financial market turmoil, suggesting that labor market momentum likely remains strong enough for the Federal Reserve to consider an interest rate hike ... Source (s): Reuters DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1441196566000 Link (s): http://www.reuters.com/article/2015/09/02/us-usa-economy-employment-adp-idUSKCN0R21A520150902 DocumentKey (s): HTTPwww.reuters.com/article/2015/09/02/us-usa-economy-employment-adp-idUSKCN0R21A520150902 DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Tech stocks lead Wall Street higher as China fears ebb Teaser (s): U.S. stocks were higher in late morning trading on Wednesday, rebounding from steep losses a day earlier, after China intervened to support its financial markets and help stem a global equities selloff. Source (s): Reuters DocumentDate (s): 5 hours ago DocumentDate_raw (n): 1441194465000 Link (s): http://www.reuters.com/article/2015/09/02/us-markets-stocks-usa-idUSKCN0R217620150902 DocumentKey (s): HTTPwww.reuters.com/article/2015/09/02/us-markets-stocks-usa-idUSKCN0R217620150902 DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): Atlas V delivers military satellite to orbit Teaser (s): CAPE CANAVERAL - A United Launch Alliance Atlas V rocket has successfully delivered the Navy's military satellite to orbit after a 6:18 a.m. Source (s): USA TODAY DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1441191208000 Link (s): http://www.usatoday.com/story/tech/2015/09/02/atlas-v-rocket-launch/71562068/ DocumentKey (s): HTTPwww.usatoday.com/story/tech/2015/09/02/atlas-v-rocket-launch/71562068/ DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] Headline (s): China slowdown weighs on Australian growth Teaser (s): Canberra, Australia • Australia's economy grew a slower-than-expected 0.2 percent in the three months through June, dragged down by waning Chinese demand for resources including iron ore and coal, government figures showed Wednesday. Source (s): Salt Lake Tribune DocumentDate (s): 11 hours ago DocumentDate_raw (n): 1441172250000 Link (s): http://www.sltrib.com/home/2904259-155/china-slowdown-weighs-on-australian-growth DocumentKey (s): HTTPwww.sltrib.com/home/2904259-155/china-slowdown-weighs-on-australian-growth DMSourceID (s): Google ContentType (s): Article 11 (o): [object Object] WSODIssue (s): |45294|145043|286571 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Home Depot is saving and doing (relatively) well Link (s): http://folionation.squarespace.com/news/2015/9/1/home-depot-is-saving-and-doing-relatively-well.html Thumbnail (s): DocumentDate_raw (n): 1441129440000 DocumentDate (s): September 1, 2015 DocumentDate_smart (s): 23 hours ago DocumentKey (s): 1107-290734296785735460353-5GVCPPRM43BE2CEQ3V1C7JJ827 ContentType (s): Article TrackingPixel (s): Teaser (s):

After a stellar Q2, Home Depot is $10 below its 52-week high amid the market sell-off. How does its future look?

After dipping as at around $110 during the 1000-plus point Dow plunge last Monday and rising to $116 at the end of the week, shares of Home Depot (HD) are down once again due to Tuesday’s broad selloff. Nevertheless, a solid second quarter, steady dividend and growing e-commerce sales are some of the reasons Home Depot has a bright future ahead.

Home Depot reported second quarter results on August 18. The home improvement company said it same-store sales by 4.2 percent over the last year, beating expectations of a 3.5 percent increase. Total revenue grew to $24.83 billion from $23.81 billion, with U.S. sales increasing 5.7 percent. Earnings were $1.71 per share, up from $1.52 per share a year ago. Home Depot’s lowering of costs by 10 basis points to 17.3 percent helped boost its results.

According to Thomson Reuters, the consensus analyst estimate was earnings of $1.71 per share and revenue of $24.69 billion.

On August 20, Home Depot declared a $0.59 per share quarterly dividend, which yields 2.01 percent. The rate may seem low, but Home Depot’s underlying business is very attractive. There is growing demand for home renovation projects in the United States. In August,  the National Association of Home Builders Market Index, which measures confidence among single-family homebuilders, rose 1 point to 61—its highest level since 2005.

Furthermore, obtaining credit is easier than ever for consumers, thanks to low interest rates. Bank of America (BAC)'s customers, for example, increased its loan balances by 3 percent to $127 billion in the second quarter.

Despite the stock price approaching a yearly high, Home Depot appears to be a long-term play. The stock has more than doubled over the past 10 years.

In its second-quarter earnings release, Home Depot also revised its guidance for 2015 upwards. Home Depot now expects sales growth between 5.2 percent and 6 percent, same-store sales growth between 4.1 percent and 4.9 percent and diluted EPS growth between 13 percent and 14 percent, placing full-year earnings in the range of $5.31 to $5.36 per share.

By comparison, Wal-Mart (WMT) is struggling. The big box retailer faces competition from Amazon.com (AMZN), and costs are on the rise after the company raised employee wages.  Wal-mart already lowered its full-year guidance last month. It now expects earnings of $4.40 to $4.70 per share, down from the previously forecast $4.70 to $5.05 per share.

Written by Chris Lau

 

 

Click on the interactive chart to view data over time. 

1. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as an online retailer in North America and internationally. Market cap at $234.93B, most recent closing price at $512.89.

 

 

2. The Home Depot Inc. (HD, Earnings, Analysts, Financials): Operates as a home improvement retailer. Market cap at $145.73B, most recent closing price at $115.87.

 

 

 

3. Wal-Mart Stores Inc. (WMT, Earnings, Analysts, Financials): Operates retail stores in various formats worldwide. Market cap at $204.57B, most recent closing price at $64.73.

 

 

 

(Monthly return data sourced from Zacks Investment Research. 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. 

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

12 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Oil troubles drag Canada into recession Link (s): http://folionation.squarespace.com/news/2015/9/1/oil-troubles-drag-canada-into-recession.html Thumbnail (s): DocumentDate_raw (n): 1441120680000 DocumentDate (s): September 1, 2015 DocumentDate_smart (s): Sep 1, 2015 DocumentKey (s): 1107-290734296785735460172-11PN94D1FUNN9OQA85233VCNKO ContentType (s): Article TrackingPixel (s): Teaser (s):

Despite expanding in June, Canada's economy shrank again in the second quarter, which means it's in a recession.

Canada has joined Brazil as the latest major economy to enter a recession. Statistics Canada revealed Tuesday morning that gross domestic product fell by an annualized rate of 0.5 percent in the second quarter. The agency also revised its first-quarter figure downwards to a 0.8 percent contraction from the previously stated 0.6 percent. 

As the world's seventh-largest exporter of crude oil, Canada has suffered from the drop in oil prices. Output from the mining, quarrying and oil and gas extraction sector plunged 4.5 percent in the second quarter, with a 5.7 percent drop in the non-conventional oil extraction industry—due to shutdowns and production problems—driving most of the loss. 

Advantage Oil & Gas (AAV), Enerplus Corporation (ENF) and Penn West Petroleum (PWE) saw the biggest drop in quarter-over-quarter sales within the Canadian oil and gas drilling and exploration industry. Sales fell by 51.60 percent, 39.30 percent and 44.70 percent, respectively.

And after rallying for three days straight, crude oil rolled back its 27.5 percent gain—its largest in dollar terms since February 2011—with a 5.3 percent decline as of 10:38 AM EST Tuesday morning. There's also the issue of production problems at Canadian Oil Sands's synthetic crude oil processing facility and Nexen Energy's oil-sands plant in northern Alberta. The temporary closing of both facilities and fears of diminishied shipments sent prices for Canadian synthetic crude oil up on Monday.

On the plus side, the Canadian economy grew by 0.5 percent in June, which could mean that the recession will be short-lived. 

13 (o): [object Object] WSODIssue (s): |75692976|167459|237331 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Intel sets sights on the skies with drones Link (s): http://folionation.squarespace.com/news/2015/8/31/intel-sets-sights-on-the-skies-with-drones.html Thumbnail (s): DocumentDate_raw (n): 1441036860000 DocumentDate (s): August 31, 2015 DocumentDate_smart (s): Aug 31, 2015 DocumentKey (s): 1107-290734296785735458969-15IDNJAVUB071TLVLHVOOM8MG2 ContentType (s): Article TrackingPixel (s): Teaser (s):

Computer processor maker Intel is trying something different and investing in the new hot thing: drones.

Intel (INTC) is branching out outside of its core competency of semiconductor chips. The firm has decided to invest in the drone market. Even though the investment is small, the potential is great. GoPro (GPRO) is also getting into this market. 

Intel said on August 26 that it is investing $60 million in Yuneec, a Chinese drone manufacturer. The company explained the decision in a video announcement, describing it as a means to help develop a future in which a smart and connected world exists. To Intel, this includes the usage of drones. Intel’s investment ensures Yuneec may one day incorporate Intel’s chips in future solutions.

The company is also partnering with 3D Robotics in developing Edison, a microcomputer the size of a postage stamp. Edison’s size would suit drones since it takes up little space while sacrificing  minimal computing power. 3D Robotics and Intel said Edison would track people and objects visually instead of using a GPS. The pair also envision scalable solutions for drones where the chip is customized and adapted as required.

Intel is not the only semiconductor firm investing in the drone market. Qualcomm (QCOM) invested $50 million in 3D Robotics this past year in February.

Intel’s investment will take time to bear fruit. In the near term, its growth will come from the release of its Skylake CPU family of chips. The desktop and mobile processors are much faster than previous generation chips. Skylake chips also overclock—operate more quickly than the hardware’s specified clock frequency—well, which should appeal to the enthusiast market.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. GoPro Inc. (GPRO, Earnings, Analysts, Financials): Develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing, and enjoying engaging content.. Market cap at $6.27B, most recent closing price at $48.18.

 

 

2. Intel Corporation (INTC, Earnings, Analysts, Financials): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $135.76B, most recent closing price at $28.42.

 

 

3. QUALCOMM Incorporated (QCOM, Earnings, Analysts, Financials): Engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. Market cap at $89.04B, most recent closing price at $57.45.

 

 

 

(Monthly return data sourced from Zacks Investment Research. 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. 

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

14 (o): [object Object] WSODIssue (s): |69198695|8406495|170676|248784 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Brazil is in a recession Link (s): http://folionation.squarespace.com/news/2015/8/28/brazil-is-in-a-recession.html Thumbnail (s): DocumentDate_raw (n): 1440775500000 DocumentDate (s): August 28, 2015 DocumentDate_smart (s): Aug 28, 2015 DocumentKey (s): 1107-290734296785735456555-1QFBOTMPS6Q5PO8LMDQBOB1V9I ContentType (s): Article TrackingPixel (s): Teaser (s):

The world's seventh-largest economy is now in a recession. And it may take years for Brazil's economy to recover.

Brazil's economy entered a recession in the second quarter, contracting more than expected between April and June. The Brazilian Institute of Geography and Statistics (IBGE) revealed on Friday that Brazil's GDP contracted by 1.9 percent last quarter, topping the median forecast of a 1.7 percent contraction. The IGBE also revised its first-quarter output figure, dropping it from a 0.2 percent contraction to 0.7 percent.

Declining commodity prices, weak demand from China—which Quartz points out is Brazil's biggest trading partner—and the ongoing Petrobras corruption scandal have slammed Brazil's economy. Additionally, high interest rates of 14.25 percent have negatively impacted consumer spending, which fell 2.1 percent between the first and second quarter.

And then there are the recent credit rating downgrades. Earlier this month, Moody's Investor Service lowered Brazil's credit rating to stable. Standard & Poor's cut the nation's outlook to negative in July.

The government, led by embattled President Dilma Rousseff who is dealing with a growing impeachment threat, has enacted several austerity measures in an attempt to help the economy. The measures include reduced spending on unemployment benefits and eliminating payroll tax breaks.

According to the BBC, analysts believe Brazil won't see growth until 2017. 

Speaking of analysts, below is a list of four Brazilian stocks with an average analyst recommendation of buy or better (as indicated by a numerical value below 3) that are actually outperforming the market this week. 

Click on the interactive chart to view data over time. 

1. Ambev S.A. (ABEV, Earnings, Analysts, Financials): Produces, distributes, and sells beer, draft beer, soft drinks, other non-alcoholic beverages, malt, and food in the Americas. Market cap at $83.59B, most recent closing price at $5.37.

Average analyst recommendation of 2.4.

The stock is outperforming the market by 1.32% this week. It is underperforming the market by 13.67% so far this year.

JPMorgan upgraded the stock to overweight (which means it's expected to outpeform its industry) from neutral on June 1.

 

2. Cosan Ltd. (CZZ, Earnings, Analysts, Financials): Engages in the production and sale of sugar and ethanol products. Market cap at $1.03B, most recent closing price at $3.88.

Average analyst recommendation of 1.8.

The stock is outperforming the market by 0.26% this week. It is underperforming the market by 49.02% so far this year.

Goldman Sachs initiated a buy rating on the stock on May 12.

 

3. Itau Unibanco Holding S.A. (ITUB, Earnings, Analysts, Financials): Provides commercial, corporate, and investment banking services to individuals, small and middle-market companies, and large corporations in Brazil and internationally. Market cap at $46.81B, most recent closing price at $7.91.

Average analyst recommendation of 2.3.

The stock is outperforming the market by 4.35% this week. It is underperforming the market by 36.57% so far this year.

 

4. Companhia de Saneamento Basico do Estado de Sao Paulo (SBS, Earnings, Analysts, Financials): Provides water and sewage services to residential, commercial, industrial, and governmental customers in the State of Sao Paulo. Market cap at $3.01B, most recent closing price at $4.45.

Average analyst recommendation of 2.5.

The stock is outperforming the market by 3.25% this week. It is underperforming the market by 27.88% so far this year.

 

 

(Monthly return data sourced from Zacks Investment Research. Upgrade data sourced from Yahoo! Finance. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

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. 

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

15 (o): [object Object] WSODIssue (s): |151846|12671937 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): IBM still has a lot of work to do Link (s): http://folionation.squarespace.com/news/2015/8/27/ibm-still-has-a-lot-of-work-to-do.html Thumbnail (s): DocumentDate_raw (n): 1440702420000 DocumentDate (s): August 27, 2015 DocumentDate_smart (s): Aug 27, 2015 DocumentKey (s): 1107-290734296785735455714-47KEGHEVO726EH0LQO28C1POA2 ContentType (s): Article TrackingPixel (s): Teaser (s):

Big Blue is trying to become a leader in the cloud and data services spaces. But leaving the past behind takes time.

IBM (IBM) is in the midst of a major turnaround program that will take several years. The company is shifting its strategy and growing cloud services and software.

Presently, the stock is inexpensive and trades at a forward P/E of 10. The low valuation is due to the operational risks of transitioning from hardware to services.

At first glance, it does not look like IBM will report better quarters in the future. Its second-quarter earnings on July 20 showed a 13.5 percent decline in revenue, extending IBM’s revenue slump to 13 consecutive quarters. The company is also buying back shares, which should help stabilize its share price.

IBM is also taking efforts to strengthen its competitive advantage. In the healthcare sector, the company is building data analytics solutions with its Watson technology. In July, IBM announced a partnership between Watson Health and CVS that aims to analyze patient data and provide better care. Earlier this month, IBM shared that it was adding image recognition capabilities to the artificial intelligence. As IBM makes improvements and adds functionality to Watson health, it may generate growing, incremental revenue.

Rackspace (RAX) is an alternative investing idea for those interested in the cloud hosting space. The company previously demonstrated strong growth rates. Rackspace is a pure play in the cloud market, whereas IBM is just building its business in this area.

The firm earned $0.20 per share on revenue of $480.2 million in the most recent quarter. Unfortunately, the company forecast revenue growth that was below consensus. 

IBM remains attractive for those looking for an undervalued firm in transition.

Written by Chris Lau

 

 

Click on the interactive chart to view data over time. 

1. International Business Machines Corporation (IBM, Earnings, Analysts, Financials): Provides information technology (IT) products and services worldwide. Market cap at $145.16B, most recent closing price at $146.70.

 

 

2. Rackspace Hosting Inc. (RAX, Earnings, Analysts, Financials): Operates in the hosting and cloud computing industry. Market cap at $4.45B, most recent closing price at $31.44.

 

 

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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