AbbVie (NYSE: ABBV ) will release its quarterly report on Friday, and with its stock having jumped considerably since it started trading as a separate entity, investors are hoping for more good news from the drugmaker. Yet even if AbbVie earnings contract slightly from pro forma figures from the previous year, the company has some promising prospects in its pipeline to help it drive long-term growth in future years.
AbbVie has historically relied on a single drug, Humira, for much of its revenue, and the company's spinoff from Abbott Labs (NYSE: ABT ) only magnified the importance of Humira to its results. Yet AbbVie knows it has to move beyond its blockbuster drug to find potential replacements down the road. Let's take an early look at what's been happening with AbbVie over the past quarter and what we're likely to see in its quarterly report.
Stats on AbbVie
Analyst EPS Estimate
Hot Railroad Stocks For 2016: Discover Financial Services(DFS)
Discover Financial Services, a bank holding company, offers direct banking and payment services in the United States. It operates in two segments, Direct Banking and Payment Services. The Direct Banking segment offers Discover card-branded credit cards to individuals and small businesses that are accepted on the Discover Network. This segment also provides other consumer banking products and services, including personal loans, student loans, and prepaid cards, as well as other consumer lending and deposit products, such as certificates of deposit, money market accounts, online savings accounts, and individual retirement account. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; the Diners Club International network, a global payments network; and third-party issuing business, which includes credit, debit, and prepaid cards issued on the Discover Network by third parties. The company was found ed in 1986 and is based in Riverwoods, Illinois.
Advisors' Opinion:- [By Jonas Elmerraji]
You don't have to be an expert technical analyst to figure out what's going on in shares of Discover Financial Services (DFS) right now. This payment network has seen its shares rally more than 33% year-to-date thanks to a textbook uptrending channel. Technical price patterns don't get much more textbook than that.
Price channels are valuable for traders because they provide high probability ranges for a stock's price action. In other words, Discover's price is unlikely to trade outside of those two bands on the chart above -- and that's exactly what makes this stock tradable right now. The best time to be a buyer comes on a bounce off of support, a level we could see very soon.
Buying off a support bounce makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trendlines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring the DFS can actually still catch a bid along that line.
- [By Sean Williams]
The comparative advantage
First, what makes Visa, and its closest competitor MasterCard (NYSE: MA ) , two genius plays in the payment processing sector is their absolution from doubtful accounts. Visa and MasterCard are payment processing facilitators. Period! Peers Discover Financial Services (NYSE: DFS ) and American Express (NYSE: AXP ) serve as both payment processors and lenders, giving them the unique ability to double-dip on profits. However, this also exposes these two companies to doubtful collections for those who don't pay their debts. During the recession, these doubtful accounts crushed the share prices of Discover and American Express. As for Visa and MasterCard, no lending ability means they'll never worry about doubtful account provisions.
Best Promising Companies To Own For 2015: J.C. Penney Company Inc. Holding Company(JCP)
J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating. The company also sells its products through its Internet Web site, jcp.com. J. C. Penney Company, Inc. has strategic alliance with Martha Stewart Living Omnimedia, Inc. As of December 7, 2011, it operated approximately 1,100 department stores. The company was founded in 1902 and is based in Plano, Texas.
Advisors' Opinion:- [By Douglas A. McIntyre]
Investors seems to believe that J.C. Penney Co. Inc. (NYSE: JCP) showed signs of life when it released earnings, and that Barnes & Noble Inc. (NYSE: BKS) admitted it was doomed. No matter which side Wall Street takes of either case, all of the evidence shows that neither has made any advance against its real enemy — Amazon.com Inc. (NASDAQ: AMZN)
- [By Matthew Smith]
The big names involved in J.C. Penney (JCP) have changed a lot in the past few months and now Vornado Realty Trust has sold the remaining shares they held from the original position they had in J.C. Penney. This is news, but not all that surprising when one considers that the company had already backed away from the investment in a considerable way earlier this year and had indicated their unhappiness with the company. We still dislike the idea of readers investing directly into the name as the risk is still high, but the one thing we would watch is to see if any more big names step into the stock with a bullish stance.
- [By Mani]
[Related -J.C. Penney Company, Inc. (JCP): Citi's Says Its Gonna Knock It Out to $11]
The stock's present valuation points to an implied EBITDA potential of at least $1.3 billion (returning to 2010 levels), which seems to be an overly optimistic assumption that is now embedded in the stock price.
Best Promising Companies To Own For 2015: Hovnanian Enterprises Inc (HOV)
Hovnanian Enterprises, Inc. (Hovnanian), incorporated in 1967, designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, mid-rise condominiums, urban infill and active adult homes in planned residential developments. The Company consists of two distinct operations: homebuilding and financial services. Its homebuilding operations consist of six segments: Northeast,including New Jersey and Pennsylvania; Mid-Atlantic, including Delaware, Maryland, Virginia, West Virginia, and Washington, D.C; Midwest, including Illinois, Minnesota and Ohio; Southeast, including Florida, Georgia, North Carolina and South Carolina; Southwest, including Arizona and Texas, and West, including California. Its financial services operations provide mortgage loans and title services to the customers of its homebuilding operations. During fiscal year ended October 31, 2011 (fiscal 2011), the Company had delivered 4,216 homes.
As of October 31, 2011, the Company was, excluding unconsolidated joint ventures, offering homes for sale in 192 communities in 37 markets in 16 states throughout the United States. It markets and builds homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active adult buyers and empty nesters. It offers a product range to provide housing to a range of customers. Its diverse product array includes single-family detached homes, attached townhomes and condominiums, mid-rise condominiums, urban infill and active adult homes.
The Company�� residential development activities include site planning and engineering, obtaining environmental and other regulatory approvals and constructing roads, sewer, water, and drainage facilities, recreational facilities and other amenities and marketing and selling homes. These activities are performed by its associates, together with independent architects, consultants, and contractors.
The Company sells its homes to customers who finance their purchases th! rough mortgages. It originates loans in Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and West Virginia.
Advisors' Opinion:- [By John Maxfield]
In the second case, we're starting to see green shoots break through the soil on the homebuilders' front. Last month, Toll Brothers (NYSE: TOL ) , the nation's largest luxury homebuilder, reported a 33% increase in unit deliveries for the three months ended April 30. And yesterday, Hovnanian Enterprises (NYSE: HOV ) , another major player in the industry, said that its unit deliveries shot up by 18%.
- [By Monica Gerson]
Hovnanian Enterprises (NYSE: HOV) is projected to report its Q3 earnings at $0.09 per share on revenue of $559.47 million.
VeriFone Systems (NYSE: PAY) is expected to report its Q3 earnings at $0.35 per share on revenue of $458.93 million.
- [By Rick Munarriz]
We're not just talking about a week of gains here. Pulte (NYSE: PHM ) , KB Home (NYSE: KBH ) , and Hovnanian (NYSE: HOV ) more than doubled last year. Hovnanian saw its stock soar 363% in 2012!
Best Promising Companies To Own For 2015: Tronox Ltd (TROX)
Tronox Limited, incorporated on September 21, 2011, is engaged in production and marketing of titanium bearing mineral sands and titanium dioxide pigment (TiO2). The Company�� TiO2 products are critical components of everyday applications, such as coatings, plastics, paper and other applications. The Company�� mineral sands business consists primarily of two product streams: titanium feedstock and zircon. The Company operates in three segments: mineral sands, pigment and corporate and other. The corporate and other include its electrolytic manufacturing business. It has operations in North America, Europe, South Africa and the Asia-Pacific region. The Company operates three TiO2 facilities at the locations in Hamilton, Mississippi, Botlek, The Netherlands, and Kwinana, Western Australia, representing approximately 465,000 tons of annual TiO2 production capacity. In addition, it operates three separate mining operations: KwaZulu-Natal (KZN) Sands located in South Africa, Namakwa Sands located in South Africa and the Tiwest Joint Venture located in Western Australia, which has a combined annual production capacity of approximately 723,000 tons of titanium feedstock and approximately 265,000 tons of zircon. On June 15, 2012, the existing business of Tronox Incorporated was combined with the mineral sands business under Tronox Limited.
Mineral Sand segment
The Company's minerals segment includes the exploration, mining and beneficiation of mineral sands deposits. These operations produce titanium feedstock, including ilmenite, chloride slag, slag fines and rutile, as well as zircon, pig iron and activated charcoal. Titanium feedstock is used primarily to manufacture TiO2. Zircon is a mineral which is primarily used as an opacifier in ceramic glazes for tiles, plates, dishes and industrial products.
Pigment segment
The Company's pigment segment primarily produces and markets TiO2, and has production facilities in the United States, Australia, and the! Netherlands. TiO2 is used in a range of products due to its ability to impart whiteness, brightness and opacity. TiO2 is used in the manufacture of coatings, plastics and paper and in a range of other applications, including inks, fibers, rubber, food, cosmetics and pharmaceuticals. TiO2 is a critical component of everyday consumer applications due to its superior ability to cover or mask other materials effectively and efficiently relative to alternative white pigments and extenders.
Corporate and other
Corporate and other is comprised of corporate activities and businesses that are no longer in operation, as well as its electrolytic manufacturing and marketing operations, all of which are located in the United States. It�� electrolytic and other chemical products operations are focused on advanced battery materials, sodium chlorate and specialty boron products.
Advisors' Opinion:- [By Robert Rapier]
The “drop” mentioned in this question referred to the correction in the prices of many domestic oil producer shares that I had warned was likely during our November web chat. But on Dec. 14, just two days after our latest chat, Anadarko Petroleum (NYSE: APC) suffered a far more worrisome drop. On that day a judge ruled that Anadarko is responsible for at least $5 billion and perhaps up to $14 billion of cleanup costs related to Tronox (NYSE: TROX), which was spun out of Kerr-McGee in 2005 and subsequently declared Chapter 11 bankruptcy in 2009.
- [By Arie Goren]
Tronox Limited (TROX)
Tronox Limited produces and markets titanium ore and titanium dioxide in the Americas, Europe, and the Asia-Pacific.
- [By Dan Caplinger]
Another source of potential problems is the titanium dioxide market. DuPont has made substantial investments in boosting TiO2 production based on the extremely high demand seen a couple of years ago, but buyers stockpiled substantial amounts of the chemical in order to avoid paying ever-higher prices. DuPont joined competitors Huntsman (NYSE: HUN ) and Tronox (NYSE: TROX ) in implementing TiO2 price increases, with DuPont's effective July 1, but the question remains whether the paint makers that need the chemical will keep buying or continue to seek cheaper substitutes.
- [By Selena Maranjian]
Finally, SAC Capital's biggest closed positions included Coach�and Dover. Other closed positions of interest include Exelixis (NASDAQ: EXEL ) and, also,�Tronox Ltd. (NYSE: TROX ) . Biotech company Exelixis recently reported non-blowout early sales of its thyroid cancer drug, Cometriq. Some are waiting to see if the drug gets approved to treat prostate cancer, too, and the company is looking at treating as many as nine different�conditions with it, such as bone tumors. On the other hand, Cometriq is expensive, and the company's debt has been growing, along with its share count.
Best Promising Companies To Own For 2015: Weyerhaeuser Company(WY)
Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, ins ulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington.
Advisors' Opinion:- [By Matt DiLallo]
Over the weekend Brookfield Asset Management (NYSE: BAM ) announced that it and its affiliate Brookfield Infrastructure Partners (NYSE: BIP ) are selling the Longview Timber business to Weyerhaeuser (NYSE: WY ) for $2.65 billion. The deal consisted of 645,000 acres of high-quality timberlands in the Pacific Northwest. While these timber assets are located in the U.S., as you will see this deal is all about China.
- [By Saibus Research]
We have an Accumulate rating on Weyerhaeuser's (WY) common stock. We believe that investors have bid Weyerhaeuser's stock up by 75% over the last six quarters because they are counting on a recovery in the housing market to serve as a catalyst for growth in WY's top and bottom lines. We can see that it would provide significant leverage to WY's bottom line because 53% of WY's operating income was used to pay debt interest, so any boost to revenue would boost WY's operating income and enable WY to generate significant gains in Net Income. We increased our fair intrinsic value per share for Weyerhaeuser from $29.02 in October to $34.88 in March and we're raising it again to $35.92. Although WY's share price has generated strong growth since 2011, we believe that the company will be able to enjoy steadily improving revenues and operating income, which will boost its pre-tax income and net income due to the financial leverage that it employs.
- [By Editor , ETFChannel.com]
Weyerhaeuser (WY) has been named a Top 25 Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ”DividendRank” statistics including a strong 3.1% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria.
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