Healthy Volumes at Union Pacific Drive Second-Quarter Earnings

Railroad behemoth Union Pacific's (NYSE:UNP)�second-quarter 2018 earnings filing was characterized by a healthy bump in volumes, and related advances in revenue and earnings per share. However, the rail freight transportation provider continues to leave some profits on the table, as its efficiency metrics could use some improvement -- a point that management readily acknowledges. Below, I'll assess the company's raw results, examine the details that drove performance during the quarter, and discuss the state of its rail productivity.

Union Pacific results: The raw numbers Metric Q2 2018 Q2 2017 Year-Over-Year Change

Revenue	$5.7 billion	$5.3 billion	8%
Net income	$1.51 billion	$1.17 billion	29.1%
Diluted EPS	$1.98	$1.45	36.5%

Data source: Union Pacific.

What happened with Union Pacific this quarter?

The company's 8% revenue gain over the prior-year quarter was facilitated by a solid 4% increase in carload volume. Management cited volume strength in the company's industrial and premium segments, which offset lower volume in energy and agricultural products.

Firmer pricing and recovery of fuel increases through fuel surcharges, combined with the higher volume, helped overcome a lower-margin mix of traffic.�

Union Pacific's operating ratio rose 1.1 percentage points against the second quarter of 2017, to 63%. The operating ratio is a widely followed benchmark that gauges a railroad's efficiency. It's found by dividing operating expenses by total revenue; lower readings indicate higher efficiency. Thus, Union Pacific's operating efficiency backtracked a bit in the second quarter.

As I've written previously, the railroad is struggling to lift its productivity. Congestion issues in the company's southern region stretching back to last year have prevented it from making the type of efficiency leaps competitor CSX Corporation (NASDAQ:CSX) has recently achieved, wowing investors in the process. Current-quarter operating statistics point to sustained pressure on the railroad's traffic, even as it tries to improve network fluidity. Average train speed decreased by 3% to 24.7 miles per hour in the second quarter, while average terminal dwell (idle) time increased 4% to 29.5 hours.

Union Pacific's operating margin dropped 150 basis points to 37%, despite the organization's ample revenue increase. This is due to the impact of fuel expense, which jumped by $209 million, or 48%, against the prior-year quarter, to $643 million. The higher fuel burden absorbed the quarter's top-line lift, and offset favorable expense variances elsewhere on the income statement. The company reported paying $2.30 per gallon of fuel in the second quarter, an increase of 36% versus Q2 2017.

The railroad repurchased a massive $5.5 billion worth of its own shares during the quarter, bringing total year-to-date share buybacks to $6.7 billion.

The share-repurchase program has been funded with new borrowings -- Union Pacific has issued $6.9 billion in new debt this year. Net of $1.3 billion in repaid debt, the company has added roughly $5.7 billion of leverage to its balance sheet in the first six months of the year.

Image source: Getty Images.

What management had to say

In Union Pacific's earnings press release, CEO Lance Fritz provided a bit of context around current-quarter issues that have contributed to the marginal increase in operating ratio:

Overall, I am pleased with the effort put forth by the entire Union Pacific team; however, I recognize the results could have been better. ... Network performance improved significantly coming out of the first quarter, but a tunnel outage and train-crew shortages created a headwind in June. I am confident we have the right plans in place to drive improvement in our operations and a better service experience for our customers.

Management is seeking to reduce the railroad's operating ratio to 60% within the next two years, and executives have set a longer-term target of 55%.�In the near term, however, efficiency readings may remain elevated as Union Pacific continues to allocate resources to improve network fluidity.

Looking forward

Union Pacific doesn't provide detailed guidance, yet management typically offers qualitative commentary on the immediate future each quarter. As for the present outlook, CEO Fritz stated the following in the company's earnings press release: "Looking to the remainder of the year, we expect the strong business environment to continue as we regain our productivity momentum and improve the value proposition for all of our stakeholders."

JPMorgan Chase & Co. Reiterates “€72.00” Price Target for Gerresheimer (GXI)

JPMorgan Chase & Co. set a €72.00 ($84.71) price objective on Gerresheimer (ETR:GXI) in a report published on Wednesday. The firm currently has a neutral rating on the stock.

A number of other research firms have also issued reports on GXI. Kepler Capital Markets set a €65.00 ($76.47) price target on shares of Gerresheimer and gave the company a sell rating in a report on Thursday, July 12th. Goldman Sachs Group set a €70.00 ($82.35) price target on shares of Gerresheimer and gave the company a neutral rating in a report on Thursday, July 12th. Commerzbank set a €68.00 ($80.00) price target on shares of Gerresheimer and gave the company a neutral rating in a report on Thursday, July 12th. equinet set a €69.00 ($81.18) price target on shares of Gerresheimer and gave the company a neutral rating in a report on Thursday, July 12th. Finally, Hauck & Aufhaeuser set a €52.50 ($61.76) price target on shares of Gerresheimer and gave the company a sell rating in a report on Monday, July 16th. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have given a buy rating to the company. Gerresheimer presently has an average rating of Hold and an average price target of €70.13 ($82.50).

Get Gerresheimer alerts:

GXI stock opened at €74.05 ($87.12) on Wednesday. Gerresheimer has a 52-week low of €59.97 ($70.55) and a 52-week high of €78.25 ($92.06).

Gerresheimer Company Profile

Gerresheimer AG manufactures and sells specialty glass and plastic products primarily for the pharma and healthcare industry worldwide. It operates through two divisions, Plastics & Devices, and Primary Packaging Glass. The Plastics & Devices division offers drug delivery systems, including inhalers, pen systems, and injection systems; sterile and non-sterile prefillable syringe systems for the pharmaceutical and biotech industries; and disposables for various analysis systems that are used in laboratories and medical practices, quick tests for patients in medical practices or hospitals, skin-prick aids and lancets for diabetics, disposables and components for dialysis machines, and catheters and surgical devices.

Recommended Story: Book Value Of Equity Per Share �� BVPS Explained

State of Alaska Department of Revenue Has $3.14 Million Holdings in Cadence Design Systems Inc (CDNS

State of Alaska Department of Revenue boosted its stake in Cadence Design Systems Inc (NASDAQ:CDNS) by 29.5% in the second quarter, HoldingsChannel.com reports. The fund owned 72,440 shares of the software maker’s stock after buying an additional 16,500 shares during the quarter. State of Alaska Department of Revenue’s holdings in Cadence Design Systems were worth $3,137,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Campbell & CO Investment Adviser LLC purchased a new position in Cadence Design Systems in the 1st quarter worth approximately $204,000. Intact Investment Management Inc. purchased a new position in Cadence Design Systems in the 1st quarter worth approximately $206,000. United Capital Financial Advisers LLC purchased a new position in Cadence Design Systems in the 1st quarter worth approximately $206,000. Thompson Siegel & Walmsley LLC boosted its stake in shares of Cadence Design Systems by 114.8% during the 1st quarter. Thompson Siegel & Walmsley LLC now owns 5,800 shares of the software maker’s stock valued at $213,000 after buying an additional 3,100 shares during the last quarter. Finally, Point72 Asia Hong Kong Ltd boosted its stake in shares of Cadence Design Systems by 32,672.2% during the 1st quarter. Point72 Asia Hong Kong Ltd now owns 5,899 shares of the software maker’s stock valued at $217,000 after buying an additional 5,881 shares during the last quarter. Hedge funds and other institutional investors own 86.03% of the company’s stock.

Get Cadence Design Systems alerts:

Cadence Design Systems stock opened at $45.66 on Wednesday. The company has a market cap of $12.71 billion, a PE ratio of 41.35, a price-to-earnings-growth ratio of 3.94 and a beta of 1.11. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.24 and a quick ratio of 1.20. Cadence Design Systems Inc has a 52 week low of $34.51 and a 52 week high of $46.00.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, April 23rd. The software maker reported $0.40 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.37 by $0.03. The company had revenue of $517.00 million during the quarter, compared to analysts’ expectations of $505.33 million. Cadence Design Systems had a return on equity of 29.43% and a net margin of 10.52%. The business’s revenue was up 8.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.32 EPS. analysts forecast that Cadence Design Systems Inc will post 0.95 earnings per share for the current year.

Several research firms have recently commented on CDNS. DA Davidson upgraded Cadence Design Systems from a “neutral” rating to a “buy” rating in a research note on Thursday, April 5th. Zacks Investment Research upgraded Cadence Design Systems from a “hold” rating to a “buy” rating and set a $44.00 target price for the company in a research note on Thursday, April 26th. BidaskClub upgraded Cadence Design Systems from a “sell” rating to a “hold” rating in a research note on Wednesday, June 13th. JPMorgan Chase & Co. increased their target price on Cadence Design Systems from $34.00 to $42.00 and gave the company an “underweight” rating in a research note on Tuesday, April 24th. Finally, Needham & Company LLC upgraded Cadence Design Systems from a “hold” rating to a “buy” rating and set a $47.00 target price for the company in a research note on Tuesday, April 24th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and six have given a buy rating to the stock. Cadence Design Systems has a consensus rating of “Buy” and a consensus target price of $43.71.

In related news, CEO Lip Bu Tan sold 100,000 shares of the company’s stock in a transaction that occurred on Friday, June 15th. The stock was sold at an average price of $44.82, for a total transaction of $4,482,000.00. Following the sale, the chief executive officer now directly owns 502,813 shares of the company’s stock, valued at approximately $22,536,078.66. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Aneel Zaman sold 43,733 shares of the company’s stock in a transaction that occurred on Friday, April 27th. The shares were sold at an average price of $40.02, for a total value of $1,750,194.66. The disclosure for this sale can be found here. Over the last three months, insiders have sold 185,763 shares of company stock worth $7,914,544. Corporate insiders own 2.28% of the company’s stock.

About Cadence Design Systems

Cadence Design Systems, Inc provides electronic design automation software, emulation and prototyping hardware, system interconnect, and analysis worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel simulation platform; Palladium Z1, a verification computing platform; and Protium S1 field-programmable gate array prototyping platform.

Further Reading: Are Wall Street analysts’ stock ratings worth following?

Want to see what other hedge funds are holding CDNS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cadence Design Systems Inc (NASDAQ:CDNS).

Audi Q5 vs. BMW X3: Which luxury SUV has the edge?

The Audi Q5 and the BMW X3 are two of the most popular compact luxury SUVs out today. Shoppers are typically drawn to the Q5 and the X3 because of their appealing mix of refinement, utility, safety and performance. Sales of both models in the United States easily surpass the companies' comparably priced Audi A4 and BMW 3 Series sedans, in fact.

Picking which one to buy can be difficult, however. Both models start at around $41,000 and offer a comprehensive set of features. Edmunds takes a look to find out which one has an edge.

Two of a kind

The Q5 and the X3 are both fully redesigned for the 2018 model year. Based on a casual glance at the spec sheet, you'd likely think Audi's and BMW's engineers were handed the same blueprints.

Each SUV comes standard with a turbocharged four-cylinder engine that makes about 250 horsepower and returns 25 mpg combined. They're also available in performance-oriented models that have larger and more powerful six-cylinder engines that generate more than 350 horsepower.

Inside, the Q5 and the X3 seat up to five passengers and have enough rear passenger space to meet the typical requirements of a small family. The Q5 offers 26.8 cubic feet of cargo space behind the rear seats, while the X3 offers 28.7 cubic feet. The BMW maintains its slim lead when you fold down the rear seats.

Each SUV has four-year/50,000-mile basic and powertrain warranties. Audi pays for the Q5's first scheduled maintenance, but BMW goes further and covers the X3's scheduled services for three years or 36,000 miles.

More: Daimler's Mercedes-Benz, Bosch to launch self-driving car service in Silicon Valley

More: Buying a new car: What tech features should you pay for and which can you skip?

More: Why you might want to wrap your car key fob in foil

This undated photo provided by BMW shows the 2018 BMW X3, a luxury compact SUV with more traditional design and a starting price of $41,995, including the destination fee. The Audi Q5 and the BMW X3 are two of the most popular compact luxury SUVs out today. Shoppers are typically drawn to the Q5 and the X3 because of their appealing mix of refinement, utility, safety and performance. (Photo: AP)

Differences in the details

The Audi Q5 and the BMW X3 provide a comfortable ride and secure handling on a variety of road surfaces. You can also fit them with an optional driver-adjustable and adaptive suspension that can soften the ride or firm it up for sportier handling. This feature is optional on all X3s, but Audi offers it on the priciest Q5 trim level only. When driving with more enthusiasm, we've found the X3 is a little more agile and engaging to drive than the Q5.

In regards to safety, each model has top scores from the Insurance Institute for Highway Safety for crash protection and effectiveness of crash avoidance technologies. But some of those crash avoidance features are easier to get on the BMW. For example, you can get lane keeping assist and adaptive cruise control on any version of the X3, but on the Q5 they're only available on the priciest trim level.

BMW gives you a little more choice in powertrains, too. The X3 is available with rear-wheel drive, whereas the Q5 comes standard with all-wheel drive. This rear-wheel-drive X3 configuration costs slightly less and improves combined fuel economy by 1 mpg. When it comes to towing, the Q5 and the X3 both offer 4,400-pound capacities. All X3s have an optional, factory-installed Class 3 hitch receiver that comes with integrated connecting hardware. The Q5 offers a similar setup, but only as a dealer-installed accessory on midgrade and higher trim levels.

This undated photo provided by Audi shows the 2018 Audi Q5, a modern-looking luxury compact SUV with a starting price of $42,475, including the destination fee. The Audi Q5 and the BMW X3 are two of the most popular compact luxury SUVs out today. Shoppers are typically drawn to the Q5 and the X3 because of their appealing mix of refinement, utility, safety and performance. (Photo: AP)

Inside look

Interior differences mostly relate to style. Both interiors offer large entertainment screens and high-resolution digital gauge clusters that host a range of adjustments. The X3's digital instrument cluster incorporates physical gauge housings into its screen, giving it a traditional appearance. The Q5's large panel looks modern and offers more dramatic configurations, including the ability to display the navigation map across the entire screen. Overall, we think the Audi's controls are easier to use, and the quality of its interior materials is higher.

Another difference is smartphone integration with Apple CarPlay and Android Auto. These systems can display select apps from your phone directly onto the car's infotainment screens. The X3 only supports Apple CarPlay, so Android users are out of luck. The Q5 comes with both. But iPhone owners will appreciate how cleanly their phone is integrated into the X3's infotainment system. The Q5's system lack of touchscreen functionality makes these systems more cumbersome to use at times.

CLOSE

USA TODAY's Nathan Bomey reports on the rise of gasoline prices as the summer approaches, driven in part by uncertainty surrounding President Trump's decision to pull the U.S. from the Iran nuclear deal, and OPEC's refusal to boost production. USA TODAY

EDMUNDS SAYS: Choosing between the Q5 and the X3 is difficult. They are comparably priced, deliver a pleasing driving experience and offer a comprehensive set of features. If you're looking for more flexibility to get the features you want without paying for stuff that you don't, the BMW X3 may be for you. If you're after a nicer interior and a more appealing infotainment system, the Audi Q5 could be your SUV of choice.

This story was provided to The Associated Press by the automotive website Edmunds. Carlos Lago is a senior writer at Edmunds. Twitter: @carloslago

Related links:

2018 Audi Q5 Video Review

2018 BMW X3 Video Review

Edmunds SUV Buying Guides

CLOSE

Audi reveals the Q8 luxury concept SUV on Monday, Jan. 9, 2017 during the 2017 North American International Auto Show at Cobo Center in Detroit. USA TODAY NETWORK

10 years ago: IndyMac collapses and starts a flood of bank failures

It was the moment the housing crisis hit home.

IndyMac, a California bank that had grown into one of the nation's largest mortgage lenders, failed 10 years ago Wednesday.

Even though most money in the bank was protected by the FDIC, the government agency that insures bank deposits, customers formed long lines outside IndyMac locations trying to withdraw their cash.

It was a scene reminiscent of the bank runs of the Great Depression. It was also a sign of things to come in the financial crisis.

In the year before IndyMac collapsed, only six banks had failed. In the year that followed, more than 10 times that many went under. By July 2011, more than 300 additional banks had failed, a rate of two per week. Rare was the Friday evening when regulators weren't seizing control of one more.

IndyMac wasn't the cause of the banking crisis. But it was the poster child.

For years, the overwhelming majority of homes in the United States had been purchased with mortgages that conformed to the strict underwriting rules of the two home loan giants, Fannie Mae and Freddie Mac.

But in the early 2000s, investors started looking for riskier loans for which borrowers would pay a higher interest rate.

Subprime loans went to borrowers with bad credit scores. IndyMac specialized in something different �� what became known as Alt-A mortgages. Those were initially loans to people who had good credit scores but couldn't prove a reliable stream of income, such as the self-employed.

Customers line up to try to get their money after the failure of IndyMac in July 2008.

By 2005 and 2006, for the first and only time, the dollar value of non-traditional loans such as subprime and Alt-A mortgages overtook the safer loans that Fannie and Freddie would accept.

IndyMac rode that boom.

The value of the loans it made more than tripled, from $22 billion in 2003 to nearly $90 billion three years later. A relatively small bank became the ninth-largest mortgage lender in the country, according to data from Inside Mortgage Finance.

IndyMac was growing fast by making loans to more and more questionable borrowers.

"There was a rush to the bottom in terms of underwriting," said Guy Cecala, CEO of Inside Mortgage Finance.

Many of those riskier loans were made not by banks but by mortgage lenders who were getting the money to lend out by selling the loans to investors.

What made IndyMac different from many of those lenders is that it was using bank deposits to come up with the cash to make the loans.

As long as home prices kept rising, as they did while the housing bubble was inflating, there were no problems. People could sell the home and walk away with more money than they owed. Once the bubble burst and prices started to decline, loan defaults started to mount.

As home prices started to fall in 2007, some subprime lenders filed for bankruptcy. In March 2008, Wall Street firm Bear Stearns essentially failed because of its bet on the riskier mortgages, and it was sold at rock-bottom prices. Even Fannie and Freddie were losing money.

But until IndyMac's failure, traditional commercial banks were mostly safe from the crisis.

Shelia Bair, the head of the FDIC at the time, said regulators knew well before July 2008 that IndyMac would probably fail. She thought that was months away. But when some members of Congress raised questions about the bank's future, it sparked a rush by the bank's larger customers to withdraw their money, causing a cash crunch that sped IndyMac's demise.

Once the FDIC took it over, things were even worse than its examiners had expected, she said.

"It was unbelievable what was going on," she said. She said so many loans had been made with questionable loan standards that the bank's failure had become inevitable.

The one major regret Bair said she has about the IndyMac failure was that the FDIC closed the bank early on the afternoon of July 11 because it wanted to notify members of Congress of the action before it got too late on the East Coast. That only fed the panic among IndyMac customers.

"If your deposits were insured, it was the safest place in the world to have your money. But people were confused and scared," she said. "It was a mistake to close early. From then on we never did that again."

IndyMac CEO Michael Perry insisted that he and other bank officers had done nothing wrong. He agreed to a $12 million civil settlement with the FDIC to help cover some of the losses. He only had to pay $1 million of that: The bank's insurance company paid the rest.

Perry declined a request for comment made through his attorney.

Bair said there was plenty of blame "across the board" for the problems that arose in the financial system.

"Industry greed played a role," she said. "The regulators' role was to be the cops on the beat, and we didn't what we needed to do."

"Congress fell down," she added. "We wanted legislation regulating lending standards. But everyone was making money and the banks lobbied against standards. The rating agencies handing out good ratings on securities backed by the loans �� shame on them."

She said she is concerned about more recent moves to undo regulations put in place after the crisis, including the Dodd-Frank financial reform law.

"The reforms put in place were incremental. A lot of people including me thing they could have farther," she said. "But there is a trend back towards deregulation that is troubling."

Koninklijke Philips (PHG) Downgraded by Zacks Investment Research

Koninklijke Philips (NYSE:PHG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Friday.

According to Zacks, “Philips’ is benefiting from strong sales in Diagnosis & Treatment businesses. The company’s expanding portfolio is driving share price momentum, which has outperformed the industry on a year-to-date basis. The company remains optimistic about the prospects of its Diagnosis & Treatment vertical. However, management also mentioned that growth of Ultrasound might not be as good as in the first quarter. Moreover, the company’s near-term profitability is likely to be hurt by the sluggish growth prospects of the healthcare market on a global scale. Also, high restructuring and acquisition-related costs are major headwinds.”

Get Koninklijke Philips alerts:

A number of other research analysts have also recently commented on PHG. ValuEngine upgraded shares of Koninklijke Philips from a “hold” rating to a “buy” rating in a research note on Monday. Deutsche Bank upgraded shares of Koninklijke Philips from a “hold” rating to a “buy” rating in a research note on Tuesday, April 17th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and five have given a buy rating to the stock. Koninklijke Philips presently has an average rating of “Buy” and an average target price of $48.00.

Koninklijke Philips traded up $0.53, reaching $43.50, during midday trading on Friday, according to Marketbeat. 58,702 shares of the company’s stock were exchanged, compared to its average volume of 647,221. The stock has a market cap of $39.68 billion, a price-to-earnings ratio of 35.08, a P/E/G ratio of 2.12 and a beta of 1.25. The company has a quick ratio of 1.13, a current ratio of 1.47 and a debt-to-equity ratio of 0.34. Koninklijke Philips has a one year low of $35.24 and a one year high of $43.45.

Koninklijke Philips (NYSE:PHG) last announced its quarterly earnings results on Monday, April 23rd. The technology company reported $0.20 EPS for the quarter. The firm had revenue of $4.84 billion during the quarter. Koninklijke Philips had a net margin of 8.76% and a return on equity of 7.08%. equities research analysts expect that Koninklijke Philips will post 2.13 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Renaissance Technologies LLC increased its holdings in shares of Koninklijke Philips by 283.3% during the fourth quarter. Renaissance Technologies LLC now owns 1,085,178 shares of the technology company’s stock worth $41,020,000 after buying an additional 802,100 shares in the last quarter. Northern Trust Corp increased its holdings in shares of Koninklijke Philips by 4.7% during the first quarter. Northern Trust Corp now owns 850,663 shares of the technology company’s stock worth $32,589,000 after buying an additional 37,992 shares in the last quarter. Jefferies Group LLC increased its holdings in shares of Koninklijke Philips by 59.0% during the fourth quarter. Jefferies Group LLC now owns 64,439 shares of the technology company’s stock worth $2,436,000 after buying an additional 23,903 shares in the last quarter. SWS Partners acquired a new stake in shares of Koninklijke Philips during the fourth quarter worth approximately $1,528,000. Finally, HBK Investments L P increased its holdings in shares of Koninklijke Philips by 110.3% during the fourth quarter. HBK Investments L P now owns 40,584 shares of the technology company’s stock worth $1,534,000 after buying an additional 21,284 shares in the last quarter. 5.44% of the stock is owned by institutional investors.

Koninklijke Philips Company Profile

Koninklijke Philips N.V. operates as a health technology company worldwide. The company offers mother and child care, and oral healthcare products; male grooming and beauty products; kitchen appliance, coffee, air, garment care, and floor care products; and sleep, respiratory care, and respiratory drug delivery products.

Get a free copy of the Zacks research report on Koninklijke Philips (PHG)

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

Amarin Co. plc (AMRN) Expected to Announce Quarterly Sales of $59.10 Million

Equities analysts predict that Amarin Co. plc (NASDAQ:AMRN) will post $59.10 million in sales for the current quarter, Zacks reports. Three analysts have made estimates for Amarin’s earnings, with the lowest sales estimate coming in at $56.80 million and the highest estimate coming in at $63.50 million. Amarin reported sales of $45.24 million in the same quarter last year, which would suggest a positive year over year growth rate of 30.6%. The company is scheduled to issue its next quarterly earnings results on Wednesday, August 1st.

According to Zacks, analysts expect that Amarin will report full-year sales of $237.17 million for the current financial year, with estimates ranging from $231.70 million to $247.30 million. For the next financial year, analysts forecast that the firm will post sales of $396.60 million per share, with estimates ranging from $283.10 million to $457.50 million. Zacks’ sales calculations are an average based on a survey of analysts that that provide coverage for Amarin.

Get Amarin alerts:

Amarin (NASDAQ:AMRN) last issued its quarterly earnings results on Wednesday, May 2nd. The biopharmaceutical company reported ($0.08) earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of ($0.08). The company had revenue of $43.80 million for the quarter, compared to analyst estimates of $43.75 million. During the same quarter in the previous year, the company posted ($0.08) EPS. The company’s revenue for the quarter was up 26.6% compared to the same quarter last year.

A number of brokerages have issued reports on AMRN. Cantor Fitzgerald set a $10.00 price target on shares of Amarin and gave the company a “buy” rating in a research note on Wednesday, May 30th. BidaskClub upgraded shares of Amarin from a “strong sell” rating to a “sell” rating in a research note on Friday, May 4th. ValuEngine upgraded shares of Amarin from a “hold” rating to a “buy” rating in a research note on Monday. Finally, Zacks Investment Research upgraded shares of Amarin from a “sell” rating to a “hold” rating in a research note on Monday, May 7th. One analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. The company has a consensus rating of “Buy” and an average price target of $7.75.

Amarin stock traded up $0.06 during mid-day trading on Friday, reaching $3.00. 1,548,913 shares of the company traded hands, compared to its average volume of 2,162,999. The company has a current ratio of 1.74, a quick ratio of 1.45 and a debt-to-equity ratio of -2.30. Amarin has a fifty-two week low of $2.66 and a fifty-two week high of $4.60. The firm has a market capitalization of $859.41 million, a price-to-earnings ratio of -12.00 and a beta of 0.73.

In other news, General Counsel Joseph T. Kennedy sold 26,942 shares of the stock in a transaction on Monday, July 2nd. The shares were sold at an average price of $3.00, for a total value of $80,826.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 4.08% of the stock is owned by corporate insiders.

Several large investors have recently added to or reduced their stakes in the company. Alkeon Capital Management LLC acquired a new stake in shares of Amarin in the first quarter worth $5,869,000. Sofinnova Ventures Inc acquired a new stake in shares of Amarin in the first quarter worth $9,998,000. A.R.T. Advisors LLC increased its stake in shares of Amarin by 205.3% in the first quarter. A.R.T. Advisors LLC now owns 342,285 shares of the biopharmaceutical company’s stock worth $1,030,000 after acquiring an additional 230,185 shares during the period. Rock Springs Capital Management LP increased its stake in shares of Amarin by 1.3% in the first quarter. Rock Springs Capital Management LP now owns 4,000,000 shares of the biopharmaceutical company’s stock worth $12,040,000 after acquiring an additional 50,000 shares during the period. Finally, Farallon Capital Management LLC acquired a new stake in shares of Amarin in the first quarter worth $13,726,000. Hedge funds and other institutional investors own 42.51% of the company’s stock.

Amarin Company Profile

Amarin Corporation plc, a biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States. The company's lead product is Vascepa, a prescription-only omega-3 fatty acid capsule, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia.

Get a free copy of the Zacks research report on Amarin (AMRN)

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

Top 5 Energy Stocks To Invest In 2019

tags:PAGP,SU,DVN,GPRK,MPC,

BidaskClub downgraded shares of MGE Energy (NASDAQ:MGEE) from a hold rating to a sell rating in a report issued on Friday.

Separately, ValuEngine cut shares of MGE Energy from a hold rating to a sell rating in a report on Wednesday, June 6th.

Get MGE Energy alerts:

NASDAQ:MGEE opened at $55.90 on Friday. The company has a current ratio of 2.34, a quick ratio of 2.00 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $1.95 billion, a P/E ratio of 25.07 and a beta of 0.32. MGE Energy has a 12 month low of $51.05 and a 12 month high of $68.70.

MGE Energy (NASDAQ:MGEE) last posted its quarterly earnings results on Tuesday, May 8th. The utilities provider reported $0.58 EPS for the quarter. The company had revenue of $157.63 million for the quarter. MGE Energy had a net margin of 17.43% and a return on equity of 10.19%.

Top 5 Energy Stocks To Invest In 2019: Plains Group Holdings, L.P.(PAGP)

Advisors' Opinion:

• [By Shane Hupp]

  News coverage about Plains GP (NYSE:PAGP) has been trending somewhat positive on Sunday, according to Accern Sentiment Analysis. The research firm scores the sentiment of press coverage by monitoring more than 20 million news and blog sources in real time. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Plains GP earned a news impact score of 0.18 on Accern’s scale. Accern also assigned news coverage about the pipeline company an impact score of 46.0549967457103 out of 100, meaning that recent press coverage is somewhat unlikely to have an impact on the company’s share price in the near future.

• [By Joseph Griffin]

  Plains GP (NYSE:PAGP) was downgraded by equities researchers at Sanford C. Bernstein from an “outperform” rating to a “market perform” rating in a note issued to investors on Monday, The Fly reports.

• [By Matthew DiLallo]

  Two years ago, Plains All American Pipeline (NYSE:PAA) and Plains GP Holdings (NYSE:PAGP) took a step to simplify their corporate structure by eliminating the costly incentive distribution rights (IDRs) that Plains All American paid to Plains GP. In exchange, Plains GP acquired a 34.8% stake in the MLP. While that deal was certainly a step in the right direction, the companies could eventually take the next logical progression by combining into one entity.

• [By Stephan Byrd]

  TheStreet upgraded shares of Plains GP (NYSE:PAGP) from a d+ rating to a c- rating in a research report released on Monday morning.

  Several other analysts have also recently issued reports on the company. Stifel Nicolaus cut Plains GP from a buy rating to a hold rating and set a $24.00 price objective on the stock. in a report on Wednesday. Jefferies Group cut Plains GP from a buy rating to a hold rating in a report on Wednesday, April 25th. Wolfe Research cut Plains GP from a market perform rating to an underperform rating in a report on Tuesday, April 24th. Deutsche Bank began coverage on Plains GP in a report on Thursday, April 19th. They set a buy rating and a $29.00 price objective on the stock. Finally, SunTrust Banks raised Plains GP from a hold rating to a buy rating and set a $27.00 price objective on the stock in a report on Monday, April 9th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. The company presently has an average rating of Hold and a consensus price target of $25.65.

• [By Joseph Griffin]

  Here are some of the news articles that may have impacted Accern’s rankings:

  Get Plains GP alerts: Plains GP (PAGP) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS (americanbankingnews.com) Plains GP (PAGP) Upgraded by TheStreet to C- (americanbankingnews.com) Plains GP (PAGP) Downgraded by Stifel Nicolaus (americanbankingnews.com) Plains GP Holdings (PAGP) Tops Q1 EPS by 5c, Beats on Revenues (streetinsider.com) Plains All American Pipeline, L.P. and Plains GP Holdings Report First-Quarter 2018 Results (finance.yahoo.com)

  Several research firms have commented on PAGP. TheStreet upgraded shares of Plains GP from a “d+” rating to a “c-” rating in a research report on Monday. Stifel Nicolaus cut shares of Plains GP from a “buy” rating to a “hold” rating and set a $24.00 target price for the company. in a research report on Wednesday. Jefferies Group cut shares of Plains GP from a “buy” rating to a “hold” rating in a research report on Wednesday, April 25th. Wolfe Research cut shares of Plains GP from a “market perform” rating to an “underperform” rating in a research report on Tuesday, April 24th. Finally, Deutsche Bank began coverage on shares of Plains GP in a research report on Thursday, April 19th. They issued a “buy” rating and a $29.00 target price for the company. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $25.65.

Top 5 Energy Stocks To Invest In 2019: Suncor Energy Inc.(SU)

Advisors' Opinion:

• [By Max Byerly]

  Suncor Energy (TSE:SU) (NYSE:SU) had its price target upped by Raymond James from C$60.00 to C$61.00 in a research report report published on Tuesday.

• [By Matthew DiLallo]

  Suncor Energy (NYSE:SU) recently put the finishing touches on two megaprojects that position it for significant production growth in the near term. However, the company's growth beyond this phase remains unclear because it can't sanction new oil sands projects until more pipelines come online, which won't happen anytime soon due to continued opposition. Because of that, the company needs to look elsewhere to drive future growth.

• [By Matthew DiLallo]

  Suncor Energy (NYSE:SU) has richly rewarded investors over the past year. Not only has the stock vastly outperformed both the S&P 500 and most other oil stocks, but it has returned a boatload of cash to shareholders through a higher dividend and share repurchases. Cash returns could rise some more in the coming months thanks two recently completed expansion projects and higher oil prices. These catalysts could be just the fuel this Canadian oil stock needs to continue outperforming.

• [By Tyler Crowe]

  I don't know if you have noticed, but oil prices have been on the rise lately, which has done miraculous things for the bottom lines at oil and gas companies. The same can be said for Suncor Energy (NYSE:SU), which was able to post a rather healthy earnings per share number considering one of its major oil sands facilities was shut down in the most recent quarter.

• [By Tyler Crowe, Reuben Gregg Brewer, and Travis Hoium]

  Clearly, investors should be at least looking at stocks in this industry, so we asked three of our investing contributors to each highlight a great company in the industry to help you get started. Here's why they picked Baker Hughes, a GE Company (NYSE:BHGE), Suncor Energy (NYSE:SU), and Total (NYSE:TOT).�

• [By Stephan Byrd]

  Suncor Energy (TSE:SU) (NYSE:SU) had its price target lifted by TD Securities from C$57.00 to C$58.00 in a report published on Friday. TD Securities currently has a buy rating on the stock.

Top 5 Energy Stocks To Invest In 2019: Devon Energy Corporation(DVN)

Advisors' Opinion:

• [By Matthew DiLallo]

  That ability to organically discover new shale plays has saved it a ton of money. The company was able to quietly gobble up 50,000 acres in Oklahoma over a four-year period for just $750 an acre. Contrast that with rivals�Devon Energy�(NYSE:DVN) and�Marathon Oil�(NYSE:MRO). Devon spent $1.9 billion to buy Felix Energy in late 2015 for the company's 80,000 acres in Oklahoma, paying a whopping $23,750 an acre. Meanwhile, Marathon paid $888 million for PayRock Energy and its 61,000 acres in the state, which amounted to roughly $14,500 an acre. EOG's�deep�knowledge of shale helps it know where to look so it can lock up land for next to nothing before rivals even know what's there.

• [By Tyler Crowe, Matthew DiLallo, and Reuben Gregg Brewer]

  So we asked three of our investing contributors to each highlight a company they think has a compelling investment case right now in the oil and gas industry. Here's why they selected Devon Energy (NYSE:DVN), Range Resources (NYSE:RRC), and ExxonMobil (NYSE:XOM).

• [By Matthew DiLallo]

  As expected, EOG Resources' U.S. oil output came in above the midpoint of its forecast and was up 15% year over year. Fueling that high-end result were the many wells EOG completed across its vast shale portfolio. The company completed 70 wells in the Delaware Basin during the quarter, with several producing more than 2,000 barrels of oil equivalent per day (BOE/D) in their first month. While the company didn't match Devon Energy's (NYSE:DVN) record-smashing 24,000 BOE/D two-well gusher, its wells were highly productive and generated excellent returns.

• [By Matthew DiLallo]

  As things stand right now, analysts anticipate that at least some Iranian oil will come off the market as a result of the sanctions. That lost output would further tighten an oil market that suddenly has little margin for error thanks to red-hot demand and tame supply growth. That's the recipe for higher oil prices and could make top-tier U.S. oil stocks Anadarko Petroleum (NYSE:APC), Devon Energy (NYSE:DVN), and ConocoPhillips (NYSE:COP) big winners in the coming years.

• [By Stephan Byrd]

  Devon Energy (NYSE:DVN) – Stock analysts at Capital One cut their Q2 2018 EPS estimates for Devon Energy in a report released on Wednesday, June 6th. Capital One analyst P. Johnston now anticipates that the energy company will earn $0.29 per share for the quarter, down from their previous estimate of $0.30. Capital One also issued estimates for Devon Energy’s FY2019 earnings at $2.19 EPS.

Top 5 Energy Stocks To Invest In 2019: Geopark Ltd(GPRK)

Advisors' Opinion:

• [By Max Byerly]

  Canaccord Genuity reaffirmed their buy rating on shares of Geopark (NYSE:GPRK) in a research note published on Tuesday morning.

  “We expect the Street to raise its estimates once again on the back of these strong results.”,” the firm’s analyst wrote.

Top 5 Energy Stocks To Invest In 2019: Marathon Petroleum Corporation(MPC)

Advisors' Opinion:

• [By Lee Jackson]

  Not only is Marathon Petroleum Corp. (NYSE: MPC) the newest member of the Franchise List, but it is a returning member. Also, the company has begun�of the long process of completing a massive purchase of another refining giant. Marathon agreed to buy rival Andeavor (NYSE: ANDV) for $23.3 billion in the biggest-ever deal for an oil refiner. That would create the largest independent fuel maker in the United States.

• [By Joseph Griffin]

  Get a free copy of the Zacks research report on Marathon Petroleum (MPC)

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

• [By Chris Lange]

  The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Thursday was Marathon Petroleum Corp. (NYSE: MPC) which rose about 5% to $80.85. The stock��s 52-week range is $49.30 to $83.27. Volume was about 9 million compared to the daily average volume of 5 million.

• [By Logan Wallace]

  Media stories about Marathon Petroleum (NYSE:MPC) have been trending somewhat positive this week, according to Accern Sentiment Analysis. Accern identifies positive and negative press coverage by reviewing more than 20 million blog and news sources in real-time. Accern ranks coverage of public companies on a scale of -1 to 1, with scores closest to one being the most favorable. Marathon Petroleum earned a news sentiment score of 0.17 on Accern’s scale. Accern also assigned news headlines about the oil and gas company an impact score of 46.2436065193767 out of 100, indicating that recent press coverage is somewhat unlikely to have an effect on the company’s share price in the next few days.

• [By JJ Kinahan]

  Energy was the other S&P sector in the green yesterday, helped by rising oil prices and excitement about the tie up between Marathon Petroleum Corp (NYSE: MPC) and Andeavor (NYSE: ANDV). Devon Energy Corp (NYSE: DVN) was the biggest gainer in the sector, rising more than 5 percent after the company raised its annual production forecast. (See more on oil below.)

• [By Maxx Chatsko]

  The combination of pipeline bottlenecks is now dragging down the price of West Texas Intermediate (WTI) crude oil to levels well below that of Brent crude. The difference between the two is called the Brent-WTI spread -- and it's now at levels last witnessed in 2015, and never before 2011. This single metric also explains why oil refinery stocks such as Marathon Petroleum (NYSE:MPC), Phillips 66 (NYSE:PSX), and Delek US Holdings (NYSE:DK) are up by as much as 51% this year.

Hot Energy Stocks To Buy Right Now

tags:PTNR,CQH,TCPC,

Source: ThinkstockApril 13, 2018: The S&P 500 closed down 0.3% at 2,656.31. The DJIA closed down 0.5% at 24,360.86. Separately, the Nasdaq was down 0.5% at 7,106.65.

Friday was a down day for the broad U.S. markets with all three major indices pulling back after what seemed like a promising opening for the session. Crude oil continued its climb to close out the week. Although this was a small gain crude is reaching even closer to $70. The S&P 500 sectors were more or less split down the middle. The most positive sectors were energy and utilities up 1.1%, and 0.7%, respectively. The worst performing sectors were financials and consumer discretionary which were down 1.5% and 0.5%, respectively.

Crude oil was up 0.3% at $67.28.

Hot Energy Stocks To Buy Right Now: Partner Communications Company Ltd.(PTNR)

Advisors' Opinion:

• [By Joseph Griffin]

  Partner Communications (NASDAQ: PTNR) and Hutchison Telecommunications Hong Kong (OTCMKTS:HTHKY) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

• [By Money Morning News Team]

  Partner Communications Co. Ltd. (Nasdaq: PTNR) is an Israeli-based mobile network operator, as well as an Internet and telephone provider. Founded in 1999, Partner was formerly operating under the umbrella of the French telecommunications company "Orange" until 2016.

• [By Lisa Levin]

  Thursday afternoon, the health care shares rose 1.79 percent. Meanwhile, top gainers in the sector included Partner Communications Company Ltd. (NASDAQ: PTNR), up 8 percent, and Cellcom Israel Ltd. (NYSE: CEL) up 7 percent.

Hot Energy Stocks To Buy Right Now: Cheniere Energy Partners LP Holdings, LLC(CQH)

Advisors' Opinion:

• [By Ethan Ryder]

  Cheniere Energy Partners (NYSEAMERICAN:CQH) – Equities research analysts at US Capital Advisors boosted their Q2 2018 EPS estimates for shares of Cheniere Energy Partners in a research report issued to clients and investors on Monday, May 14th. US Capital Advisors analyst J. Carreker now expects that the energy company will post earnings of $0.57 per share for the quarter, up from their prior estimate of $0.54. US Capital Advisors also issued estimates for Cheniere Energy Partners’ Q3 2018 earnings at $0.57 EPS and Q4 2018 earnings at $0.57 EPS.

• [By Logan Wallace]

  Shares of Cheniere Energy Partners (NYSEAMERICAN:CQH) have received an average rating of “Hold” from the seven ratings firms that are currently covering the company, Marketbeat reports. Five analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $30.88.

• [By Paul Ausick]

  Liquefied natural gas (LNG) producer Cheniere Energy Inc. (NYSEAMERICAN: LNG) has agreed to acquire all publicly traded shares that it does not already own in Cheniere Energy Partners LP Holdings LLC (NYSEAMERICAN: CQH) for $30.93 per share in Cheniere Energy stock. The transaction is expected to be tax-free to Cheniere Holdings shareholders. The proposed acquisition was first announced on May 17.

• [By Paul Ausick]

  Cheniere Energy Inc. (NYSEAMERICAN: LNG) announced Thursday morning that it is acquiring the approximately 8.1% of subsidiary Cheniere Energy Partners Holdings LLC (NYSEAMERICAN: CQH) that it does not already own in an all-stock deal valued at $28.24 per share of Cheniere Partners Holdings.

• [By Reuben Gregg Brewer]

  I wouldn't personally buy Cheniere Energy -- it has a complex corporate structure that includes not just Cheniere Energy Partners, L.P. but also Cheniere Energy Partners LP Holdings LLC (NYSE: CQH),�where the only asset is an ownership stake in Cheniere Energy Partners, L.P. Cheniere Energy is attempting to resolve this issue by acquiring Cheniere Energy Partners LP Holdings. Until that process is complete, however, that's just too much corporate complexity for my taste.

Hot Energy Stocks To Buy Right Now: TCP Capital Corp.(TCPC)

Advisors' Opinion:

• [By Joseph Griffin]

  TCP Capital (NASDAQ:TCPC)‘s stock had its “buy” rating restated by equities research analysts at National Securities in a research report issued to clients and investors on Monday. They presently have a $17.00 price objective on the investment management company’s stock. National Securities’ price target indicates a potential upside of 17.24% from the stock’s previous close.

• [By Joseph Griffin]

  TCP Capital (NASDAQ:TCPC) was upgraded by analysts at BidaskClub from a “sell” rating to a “hold” rating in a note issued to investors on Saturday.

These 5 Stocks Are In Various Phases Of Downtrends Right Now

The following five stocks are currently in the midst of uptrends according to VantagePoint, an AI charting platform that uses intermarket analysis to predict future price action 1-3 days in advance.

A couple of things to know in order to understand the charts below:

Each chart is a 3-month chart. Candles represent one day of trading The blue line is a predicted moving average that forecasts a stock's moving average either two or three days out, depending on the chart. The black line is a simple 10-day moving average When the blue line crosses above the black, that's a bullish signal. When the black crosses over the blue, that's bearish 

For a more detailed look at VantagePoint's charts, click here.

Callon Petroleum

Callon Petroleum Company (NYSE: CPE) had a predictive moving average crossover to the downside in mid-May indicating a bearish trend. The stock ended up falling nearly 30 percent over a three week span. But it appears to have stablizied recently. Notice how the blue line, in this case a two-day predicted moving average, recently crossed above the black line. That indicates that the downtrend may be over, or has at least lost a lot of momentum. This could be one to watch for upside on in the coming days. 

VeriSign

VeriSign, Inc. (NASDAQ: VRSN) follows a similar pattern, but to the upside. The stock had a crossover to the upside in early May, which was followed by a 24 percent rally. But the two-day moving average appears to have crossed over into a downtrend, as evidenced by the weakness over the last three days. The Neural Index at the bottom of the chart also confirms this weakness going forward, at least until Tuesday. 

Ralph Lauren

Ralph Lauren Corp (NYSE: RL) also had a bullish crossover in early May, but like VeriSign, the uptrend appears to be over. RL has fallen 6 percent in the last week, and the downtrend looks to be getting stronger as evidenced by the two lines starting to diverge further. 

Guaranty Bancorp 

Guaranty Bancorp (NASDAQ: GBNK) appears to be in an all-out downtrend. The blue line on this chart is a three-day predicted moving average. The fact that VantagePoint is forecasting downside as far out as Tuesday, and the two moving averages have only diverged further, tells us this trend is strong. GBNK is down about 11 percent in the last two weeks.

Progenics Pharmaceuticals

Progenics Pharmaceuticals, Inc. (NASDAQ: PGNX) was in an uptrend, but that appears to have ended. The two-day predicted moving average has crossed below the 10-day moving average, and the Neural Index also forecasts impending weakness. This tell us that the stock's recent 8 percent drop is likely to continue for now. 

VantagePoint is a content partner of Benzinga. For a free trial, click here.

 

Luxoft (LXFT) Stock Rating Upgraded by Zacks Investment Research

Zacks Investment Research upgraded shares of Luxoft (NYSE:LXFT) from a hold rating to a buy rating in a research report report published on Friday morning. They currently have $48.00 target price on the software maker’s stock.

According to Zacks, “Luxoft Holding, Inc. offers software development services and information technology solutions. Its software development services consist of software development and support, product engineering and testing and technology consulting. The Company focuses on six industry verticals: financial services, travel and aviation, technology, telecom, automotive and transport and energy. It operates primarily in Western Europe and North America. Luxoft Holding, Inc. is based in Tortola, Virgin Islands. “

Get Luxoft alerts:

Several other equities analysts also recently commented on LXFT. Cowen downgraded shares of Luxoft from an outperform rating to a market perform rating and cut their price target for the company from $63.00 to $50.00 in a report on Wednesday, February 14th. ValuEngine upgraded shares of Luxoft from a sell rating to a hold rating in a report on Wednesday, May 2nd. KeyCorp cut their price target on shares of Luxoft from $56.00 to $53.00 and set an overweight rating on the stock in a report on Tuesday, May 22nd. William Blair downgraded shares of Luxoft from an outperform rating to a market perform rating in a report on Thursday, May 24th. Finally, JPMorgan Chase & Co. cut their price target on shares of Luxoft from $69.00 to $65.00 and set an overweight rating on the stock in a report on Wednesday, February 14th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and six have given a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $54.91.

Luxoft opened at $33.00 on Friday, Marketbeat.com reports. Luxoft has a twelve month low of $31.50 and a twelve month high of $66.55. The stock has a market capitalization of $1.12 billion, a PE ratio of 15.79 and a beta of 1.65.

Luxoft (NYSE:LXFT) last posted its earnings results on Thursday, May 24th. The software maker reported $0.59 earnings per share for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). Luxoft had a return on equity of 16.33% and a net margin of 6.29%. The business had revenue of $232.90 million during the quarter, compared to the consensus estimate of $228.74 million. During the same quarter last year, the firm earned $0.63 earnings per share. The business’s quarterly revenue was up 14.1% on a year-over-year basis. research analysts anticipate that Luxoft will post 2.51 earnings per share for the current year.

Hedge funds have recently modified their holdings of the business. GCA Investment Management LLC bought a new position in Luxoft in the 4th quarter worth about $217,000. Brown Advisory Inc. purchased a new stake in shares of Luxoft in the 4th quarter worth approximately $446,000. Redmond Asset Management LLC purchased a new stake in shares of Luxoft in the 4th quarter worth approximately $518,000. Quadrature Capital Ltd purchased a new stake in shares of Luxoft in the 4th quarter worth approximately $529,000. Finally, Wells Fargo & Company MN lifted its position in shares of Luxoft by 185.5% in the 3rd quarter. Wells Fargo & Company MN now owns 9,797 shares of the software maker’s stock worth $468,000 after purchasing an additional 6,365 shares during the period. Institutional investors and hedge funds own 55.86% of the company’s stock.

About Luxoft

Luxoft Holding, Inc, together with its subsidiaries, provides software development services and IT solutions to multinational corporations primarily in Europe and the United States. It offers application software development, software architecture design, performance engineering, optimization and testing, process consulting, and software quality assurance services; functional specification and mock-up, product design, engineering, automated testing, maintenance, support, and performance engineering services; and IT strategy, software engineering process, and data security consulting services.

Get a free copy of the Zacks research report on Luxoft (LXFT)

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

Jacobs Engineering: CH2M Is Starting To Pay Margin Dividends

Jacobs Engineering Group Inc. (JEC) has finished up some of the final details of its latest $2.85 billion CH2M deal, which will help the company refocus itself on higher margin projects moving forward. The recent surge in energy prices should help reignite Jacob's lagging businesses which have consistently underperformed the past few years. The successful CH2M integration, higher margins, and oil's recovery all should help propel the company forward in the back half of 2018, as long as the company can meaningfully reduce its new debt load back towards its historically low levels that investors are used to.

Jacobs's second quarter results included a $250 million final deal consideration payment for its CH2M acquisition, putting the finishing touches on a deal that is already producing results for the company. The growth the company is experiencing can be seen by the fact that the combined company's net head count has grown by 3,000 since the acquisition. This might lead investors to incorrectly think that this might be a drain on margins for the company. This is because the CH2M acquisition is orientating the combined company more towards higher value projects including new Tier 1 nuclear opportunities and possibly a significant water infrastructure investment cycle. A recent EPA survey cited $473 billion of infrastructure needs over the next 20 years to improve U.S. drinking water, which Jacobs could be a major player in after its CH2M acquisition.

Here's a look at how the company's revenues and margins have grown from the acquisition, even as the company is still in the early stages of taking advantage of synergies and cost savings.

Slide from Jacobs's Q2 Presentation

These results are pretty impressive as gross margins rose 140 basis points over last year's numbers even with all the acquisition costs for CH2M. Backlog is also up 9% from last year to $26.5B, not bad for a $9B market cap company, especially means they have completely reorganized their traditional lines of business down into three.

Slide from Jacobs Q2 Presentation

The oil recovery should also continue to help the company's new Energy, Chemicals, and Resources line of business, which has had a rough few years after oil's crash in 2014 from over $100 a barrel for WTI.

WTI Crude Oil Spot Price data by YCharts

Revenue for this line of business was up 17% in the second quarter as oil continues to rally from its 2016 lows. The last few years have resulted in a lot of the costs and inefficiencies being driven out of this business line as production is now cheaper and more efficient then it was after the major oil rally preceding 2014. With $80 WTI oil possibly on the near horizon, a jump in spending in infrastructure, pipelines, and mining projects might be right around the corner.

Finally, one of the main issues to watch for in the back half of 2018 is whether Jacobs can accelerate its deleveraging now that its CH2M acquisition is complete. The $2.85B CH2M acquisition means that now Jacobs sits with approximately $800 in cash, after the second quarter, with gross debt now at approximately $2.5B. The company's historical track record of maintaining a strong investment grade credit profile was one of the reasons I initially took a position in this company years ago. With Jacobs currently paying a very modest ~1% dividend for shareholders, there should be plenty of free cash flow in the combined company for debt reduction, especially if margins continue to hold or improve from here. With its current gross debt leverage ratio around 2.2 times adjusted EBITDA at the end of Q2, I would look for the stock to start heading back towards its 52-week highs if the company can quickly start to remove this debt from its balance sheet.

JEC data by YCharts

Jacobs Engineering is having success fully integrating its CH2M acquisition with margins and revenues both showing great signs of growth. With oil continuing to rally to new highs not seen since 2014, the company's poorest performing line of business should show renewed growth and profitability. This could easily get the company back on track for some new 52-week highs if it can show sustained and meaningful deleveraging over the back half of 2018. Best of luck to all.

Disclosure: I am/we are long JEC.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Top Tech Stocks To Buy Right Now

tags:CX,VGT,RMP, Technical Charts indicate a bullish�trend for�Advanced Micro Devices, Inc stock. Analysts are also bullish on AMD stock.
Flickr

Shares of silicon chip maker Advanced Micro Devices, Inc�(NASDAQ:AMD) didn't have a good month (March 2017) compared to their usual standards. AMD stock was down more than 8% before recovering in the last two days and closing the month at $14.55, down 2.7% for the month of March. For the year, AMD stock is up almost 30%, compared to a 9.5% gain in Nasdaq Composite (INDX:COMPX). AMD stock had fallen more than 12% in the two days following the Ryzen disappointment. The fall in the stock price had broken an important support level for AMD stock. As can be seen in the AMD technical analysis chart, AMD stock had closed below the 20-day simple moving average support line on higher volumes. The bearish crossover over the 20-day moving average was accompanied by a bearish crossover in the Moving Average Convergence/Divergence (MACD) oscillator.

Top Tech Stocks To Buy Right Now: Cemex S.A.B. de C.V.(CX)

Advisors' Opinion:

• [By Jon C. Ogg]

  CEMEX SAB de C.V. (NYSE: CX) has had a rough year, with much of the ongoing trade war risks putting Mexico at risk due to NAFTA being renegotiated by the White House. There are even risks that NAFTA could be canceled. That would be bad news for a company like Cemex, with its large cement operations. Cemex is the third largest cement company in the world, based on its installed capacity, and it is considered to be the largest concrete company in the world.

• [By ]

  Cemex (NYSE: CX) is a global building materials company that produces, distributes and sells cement, ready-mix concrete, aggregates and related building materials in more than 50 countries. Cemex's U.S. network includes 11 cement plants, 43 strategically located distribution terminals, 57 aggregate quarries and more than 270 ready-mix concrete plants. Its products are used in bridges, roads, structures, dams and more.�

• [By Paul Ausick]

  Cemex SAB de CV (NYSE: CX) traded down about 2.4% Wednesday and posted a new 52-week low of $7.03 after closing Tuesday at $7.20. The stock’s 52-week high is $10.37. Volume was around 9 million, about 10% below the daily average. The company had no specific news.

Top Tech Stocks To Buy Right Now: Vanguard Information Technology ETF (VGT)

Advisors' Opinion:

• [By Demitrios Kalogeropoulos, George Budwell, and Dan Caplinger]

  With those attractive characteristics in mind, we asked Motley Fool investors to highlight a few of the most attractive index funds. Read on to find out why Vanguard Information Technology (NYSEMKT:VGT), Vanguard Total Stock Market Index (NYSEMKT:VTI), and Vanguard Health Care Fund (NASDAQMUTFUND:VGHCX)�all made the list.

Top Tech Stocks To Buy Right Now: Rice Midstream Partners LP(RMP)

Advisors' Opinion:

• [By Stephan Byrd]

  These are some of the media headlines that may have effected Accern’s scoring:

  Get Rice Midstream Partners alerts: Investor Expectations to Drive Momentum within Balchem, Beacon Roofing Supply, Rice Midstream Partners LP, LTC Properties, Ubiquiti Networks, and 1st Source �� Discovering Underlying Factors of Influence (finance.yahoo.com) Rice Midstream Partners (RMP) Rating Lowered to Strong Sell at ValuEngine (americanbankingnews.com) Zacks: Brokerages Expect Rice Midstream Partners (RMP) to Announce $0.40 EPS (americanbankingnews.com) Rice Midstream: 1Q Earnings Snapshot (finance.yahoo.com) Rice Midstream Partners (RMP) Announces $0.30 Dividend (americanbankingnews.com)

  RMP stock opened at $17.88 on Friday. The stock has a market capitalization of $1,871.10, a P/E ratio of 10.63, a P/E/G ratio of 0.74 and a beta of 1.17. Rice Midstream Partners has a 52 week low of $16.87 and a 52 week high of $26.00. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.91 and a quick ratio of 2.91.

• [By Logan Wallace]

  Williams Companies (NYSE: WMB) and Rice Midstream Partners (NYSE:RMP) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

US Automakers Offer Few ‘Cool’ Cheap Cars — for Now

Given the popularity of pickups and sport utility vehicles in the United States since the price of gasoline dropped sharply, along with the price of oil, a few years ago, it is little wonder that U.S. automakers are not well represented on Kelley Blue Book��s latest list of the 10 coolest cars under $20,000 for 2018.

Those that made the list are the cars that the firm considers the most fun to drive and fun to own among the most affordable options, and again the Mazda 3 takes the top spot. The only ones on this year��s list from U.S. automakers are the Jeep Renegade from Fiat Chrysler Automobiles N.V. (NYSE: FCAU) and the Chevrolet Sonic from General Motors Co. (NYSE: GM).

Below are the latest Kelley Blue Book picks for the 10 coolest new cars under $20,000, along with what the firm had to say about each one.

Mazda 3: “Available in both sedan and hatchback form, the Mazda3 offers practicality that appeals to compact car buyers, with sportiness that makes even daily chores more fun.” Honda Civic: “Kelley Blue Book’s Small Car Best Buy of 2018, the Civic is a well-rounded car offered as a sedan or coupe that’s comfortable, roomy, practical, efficient, packed with cool tech, and a blast to drive.” Hyundai Kona: “The Kona was given a healthy dose of modern style, and the clean, crisp cabin is filled with a bevy of connectivity and advanced safety features.” Volkswagen Golf: “Euro-tuned handling and a sporty attitude are only part of what makes the Golf such an appealing car.” Kia Soul: “Few vehicles match the Kia Soul’s alluring combination of bold style, SUV-like versatility, and practicality, with a roster of standard and available features that add to the Soul’s value.” Jeep Renegade: “Of all the vehicles on this list, the Renegade is the one that can get you the furthest beyond where the pavement ends.” Subaru Impreza: “Already earning extra credit for its standard all-wheel drive, a recent redesign gives the Impreza sedan and hatchback sharper looks, more refinement and a larger palette of tech and convenience features, all while retaining the strong value proposition and reliability for which Subaru is known.” Honda Fit: “This diminutive hatchback has a feature called the Magic Seat that gives the interior space and versatility that rivals that of a small SUV. The combination of practicality and pep at an affordable price makes the Fit a hard car to resist.” Hyundai Elantra: “The all-new Elantra GT hatchback expands the Elantra lineup, adding a dose of likable style and five-door versatility to the mix.” Chevrolet Sonic: “The Sonic’s starting price of $16,170 makes it the most affordable car on this list. But what keeps Chevrolet’s subcompact sedan and hatch on our list of coolest cars is its compelling combination of tech, comfort and a fun attitude, all wrapped in redesigned sheet metal.”

For quite a while, the best-selling vehicle sold in the United States has been the Ford Motor Co. (NYSE: F) F-150 pickup, with its 2018 base price of well over $27,000. Fully loaded, they can top out at more than $70,000.

Pickups and SUVs are so popular in America that Ford recently decided to stop production of its Taurus, Fusion, C-Max and Fiesta sedans. But as oil prices creep up, taking gasoline prices with them, will American consumer tastes shift again, forcing U.S. carmakers to come up with more of their own ��cool�� but affordable cars?

24/7 Wall St.
10 Vehicles With the Highest (and Lowest) Recall Rates

Sony's New CEO Sets Steady-as-She-Goes Mid-Term Targets

Sony Corp., once known for pushing the boundaries of technology, is starting to look a little bit boring under Kenichiro Yoshida.

The new chief executive officer’s reputation as a stoic numbers guy was demonstrated on Tuesday when he unveiled mid-term targets for the first time as chief executive officer, predicting conservative profit growth across most divisions over the next three years as the company focuses more on content and services.

The strategy announcement echoed results issued less than a month ago, when Yoshida gave an outlook for the current year that set a low bar and jolted investors. The shares fell as much as 3.7 percent on Tuesday, the biggest intraday decline since May 1, the day after the earnings report. While the former chief financial officer said the goal is to generate “high profitability” in electronics, entertainment and financial services, the biggest news of the day was Sony’s agreement to buy EMI’s music catalog for about $2 billion.

“As a former finance executive, Yoshida isn’t the type to make unrealistic predictions, and this mid-term plan plays it safe,” said Hiroshi Kato, general manager at Chibagin Asset Management. “Most investors didn’t have their hopes up — it’s clear that there wasn’t a positive surprise.”

Sony even predicted a decline in the game and networks business, forecasting operating profit of 130 billion to 170 billion yen ($1.2 billion-$1.5 billion) by March 2021, compared with the current year’s outlook for 190 billion yen. Music profits will be 110 billion to 130 billion yen, up from 112 billion yen, while movies will bring in 58 billion to 68 billion yen, compared with 42 billion yen.

“I’m not putting much of my color on this mid-term plan,” Yoshida said in a speech in Tokyo. “Our vision of moving people’s emotions is unchanged. Our message this time is to pursue that further.”

The measured outlook comes as Yoshida seeks to push Sony toward more-predictable and stable profit streams from gaming subscriptions, online content and intellectual property licensing. Simultaneously, he expects to sell fewer hardware products — televisions, digital cameras, smartphones and PlayStation consoles — as the rise of Chinese manufacturing has made gadgets a business with razor-thin profit margins.

“It’s quite disappointing,” said David Dai, an analyst at Sanford C. Bernstein & Co. in Hong Kong. “He’s really set a low bar, too low for investors.”

Sony is targeting operating cash flow of at least 2 trillion yen over the next three years. 1 trillion yen will be spent on capital investments, while the rest is earmarked for strategic investments, bolstering the balance sheet and shareholder returns, the company said. Yoshida said he made a deliberate choice not to set an overall operating profit target, which would have included Sony’s finance division.

“We didn’t want to be controlled by having to deliver that profit in three years time,” Yoshida said. “That’s why we’re focusing more on the cash flow. We will continue discussions with our shareholders and investors on whether we need to show the three-year operating profit going forward.”

The brightest spot was Sony’s semiconductors business, which supplies camera chips for the iPhone and other high-end smartphones. Annual operating profit for the division will be 160 billion to 200 billion yen, up from 100 billion yen, the company said.

Sony’s unveiling of its mid-term plan has drawn increasing attention from investors in recent years and has been marked by conservative outlooks. Investors have applauded the transformation toward content and services that’s been under way since Kazuo Hirai took over as CEO in 2012, with the shares climbing more than five-fold amid a turnaround.

In May 2015, Hirai first hinted the company was turning a corner in its years-long restructuring effort and predicted that operating profit could reach 500 billion yen by March 2018. Shares have climbed 60 percent since then as Sony ultimately surpassed that outlook.

Earlier on Tuesday, Sony announced the purchase of EMI Music Publishing, getting its hands on a catalog of 2.1 million songs from Beyonce, Carole King and other artists. The deal helps to solidify Sony’s position as the largest music publisher amid a boom in streaming services that has fueled valuations for music copyrights.

“This investment is precisely what we need to boost our content intellectual property,” Yoshida said of the deal. “Music is a recurring business and is on an important trajectory.”

Sony will buy about 60 percent equity interest from a consortium led by Mubadala Investment Co. for about $2 billion, it said in a statement. The company already owns almost 40 percent of EMI, operates the business and had been in talks to buy the library for the past few months.

— With assistance by Hideki Sagiike

LISTEN TO ARTICLE 4:38 Share Share on Facebook Post to Twitter Send as an Email Print

Nearly Half of U.S. Adults Lack Basic Social Security Knowledge

Millions of retirees depend on Social Security to pay the bills, so much so that 62% of seniors count on it to provide half of their income or more. Unfortunately, nearly half of the U.S. adult population is missing key knowledge needed to make the most of those benefits.

In recent quiz rolled out by Mass Mutual, a frightening 47% of Americans could not answer basic questions about full retirement age and spousal benefits -- two key components of Social Security. Specifically, respondents didn't know that their benefits would be reduced if they were to file at age 65, nor did they know that spouses of eligible recipients can collect benefits even without a work history of their own.

Image source: Getty Images.

If you're planning to have Social Security pick up a large chunk of your retirement tab, you'd be wise to get the scoop on the aforementioned topics. This way, you can devise a filing strategy that best serves your needs in the future.

Full retirement age: It pays to wait to claim benefits

Your Social Security benefits themselves are calculated based on how much you earned during your top 35 working years, but the age at which you first file for them could change your ultimate monthly payout. If you claim benefits at full retirement age (FRA), you'll get the full monthly benefit your earnings record entitles you to. FRA is a function of your year of birth, as follows:

Year of Birth

Full Retirement Age

1943-1954	66
1955	66 and 2 months
1956	66 and 4 months
1957	66 and 6 months
1958	66 and 8 months
1959	66 and 10 months
1960	67

Data source: Social Security Administration.

That said, you can actually start taking benefits as early as 62, which happens to be the most popular age for filing. In doing so, however, you'll slash your benefits significantly, so if you're relying on Social Security to provide a large portion of your retirement income, you may want to hold off until FRA or even beyond. In fact, for each year you delay benefits past FRA, you'll snag an 8% boost that will remain in effect for the rest of your life. This incentive, however, runs out at age 70, which is why 70 is generally considered the latest age to file for benefits, even though you're technically not forced to sign up at that time.

Furthermore, many people assume that they're eligible for their full monthly benefits at age 65 because that's when Medicare kicks in. But that's not true. You can enroll in Medicare and get health coverage the moment you turn 65, but if you sign up for Social Security simultaneously, you'll lose a portion of your benefits by enrolling early.

To give you a sense of how much you'd lose by filing ahead of schedule, imagine you're looking at an FRA of 67 and a full monthly benefit of $1,500. Filing at 62 will reduce each payment to $1,050. Waiting until 70, by contrast, will leave you with $1,860 a month in Social Security income.

Spousal benefits: You don't need to work to collect Social Security

We just learned that Social Security benefits are earnings-based, but if you're married without a work history of your own, you're in luck. That's because you're eligible to collect up to 50% of your spouse's benefit at your full retirement age. Going back to the point above, if your spouse files for benefits ahead of FRA and reduces them, you'll also collect less. Similarly, if you, as the recipient of spousal benefits, decide to file early, you'll lose a percentage of the monthly payment you'd otherwise be entitled to.

Another thing you should know about spousal benefits is that you can collect them even if you have a work record of your own. If your monthly benefit based on your earnings history is $800 and your spouse is entitled to $1,800 per month, your benefit will automatically get bumped up to $900, or 50% of your spouse's benefit. Finally, whereas holding off past FRA can boost your personal benefit, you can't increase your spousal benefit by waiting.

Understanding the nuances of Social Security can help you maximize your benefits when it's time to collect them, so do your best to get educated about the program while you're still working. A little bit of basic knowledge could help you make the best filing decision, and that's something you'll no doubt appreciate as a retiree.

Why some retailers are winning and some are losing

Nordstrom is the latest big American retailer to report sluggish sales growth.

Its stock tanked -- just like several other retailers this week.

JCPenney's (JCP) results were dreadful and shares are now down more than 40% in the past year. Walmart (WMT) reported an uptick in online sales, but investors are worried about its profit margins. Walmart's stock, already one of the worst performers in the Dow so far in 2018, fell again after its earnings report.

But not all big retailers are struggling. The weak sales from Nordstrom (JWN) and JCPenney are in stark contrast to healthier results released this week by department store chains Macy's (M) and Dillard's (DDS).

People are clearly still shopping at some brick and mortar retailers. Government figures for retail sales in April showed a healthy uptick in spending overall.

The fact that some traditional chains are doing well while others are foundering proves Amazon (AMZN) isn't killing everyone. It's not true.

Nordstrom, for example, is a much different company than JCPenney. It is more of a higher-end, luxury retailer -- one that presumably is more immune to price pressures from discounters like Amazon and Walmart.

Nordstrom's men's store offers 24-hour curbside pickup

To that end, Nordstrom executives said in an earnings call Thursday evening that the core Nordstrom stores were stabilizing. But they aren't improving quickly enough. Sales of Nordstrom stores that were open a year ago grew just 0.6%, and the stock fell nearly 10% Friday.

Home Depot (HD) has faced very little pressure from Amazon and other online stores. Yet its latest results and outlook were also lackluster, largely because of bad weather (a legitimate excuse for a company that sells to professionals building homes outdoors) and concerns that rising interest rates could dampen home sales.

So it just goes to show that there is a lot more to retailing than Amazon. And we're not done with the parade of earnings from big chains just yet.

We'll get more clues next week about what consumers are buying and where they are shopping when more retailers report their latest results and provide outlooks as well.

Among the bigger store chains on tap: TJ Maxx parent TJX (TJX), Kohl's (KSS), Home Depot competitor Lowe's (LOW), Tiffany (TIF), Target (TGT), Victoria's Secret owner L Brands (LB), Best Buy (BBY), Williams-Sonoma (WSM) and Gap (GPS).