Saturday, July 22, 2017

FedEx Earnings Review

The fourth-quarter results from FedEx Corporation (NYSE:FDX) were broadly positive, but the best word to describe them is "noisy." The headline numbers were impacted by a combination of issues including the integration of TNT Express, pricing actions taken to improve yield, and network expansion costs. There is a lot going on in the earnings report; here are the key points

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3 Stocks Up Big in 2017

Machine-vision company Cognex Corporation (NASDAQ:CGNX), roofing and insulation company Owens Corning (NYSE:OC), and industrial tools company Stanley Black & Decker (NYSE:SWK) have all seen sharp increases in their stock prices in 2017. So is now the time to cash in some gains? Let's look at what's happened with all three and consider why there may be more to come from them in 2017.

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Dover Corp Plans to Grow Earnings

Oil and gas-focused industrial stocks like Dover Corp (NYSE:DOV) have seen an uptick in prospects in 2017 with the recovery in energy capital spending, and Dover has raised organic revenue guidance in its three other operating segments. The company is having a strong 2017, and its three-year outlook to 2019 -- provided at a recent investor meeting -- suggests that the stock could have further upside potential. Let's take a look at what investors can expect.

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Thursday, July 13, 2017

Why Ingersoll-Rand PLC Stock is a Buy

Heating, ventilation, and air conditioning (HVAC) company Ingersoll-Rand PLC (NYSE:IR) is the most compelling stock in the electrical equipment sector, offering investors an attractive mix of long-term growth, margin expansion, and free cash flow generation. Let's take a closer look at why Ingersoll-Rand might be a useful addition to your portfolio.

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Electrical Equipment Stocks With Good Dividends

So you want to invest in the electrical equipment sector and you also want a healthy dividend to go with it. In that case, here's a rundown of the leading players in the industry and which ones are of particular relevance to income-seeking investors.

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Tuesday, July 11, 2017

Agricultural Equipment Stocks to Buy

It's been a difficult five years for the agricultural-equipment sector as record harvests have led to falling crop prices and a lack of willingness among farmers to buy new machinery. However, the uptick in key crop prices such as corn, wheat, and soybeans in 2017 is encouraging investors to believe a turnaround in fortunes is about to take place. In this line of thought, let's look at the three best stocks in the sector, namely Deere & Company (NYSE:DE)AGCO Corporation (NYSE:AGCO) and CNH Industrial NV (NYSE:CNHI).

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Rockwell Automation Stock Carries a Premium

On both an absolute and relative basis, Rockwell Automation (NYSE:ROK) stock looks expensive. As you can see below, its current P/E ratio of around 27 times earnings means it commands a premium to the electrical equipment sector.
Time to hit the sell button? Not so fast -- here are five reasons Rockwell Automation's premium rating is deserved, and why the stock might even be a good value option.

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Thursday, June 29, 2017

3M Co Stock Analysis

The first-quarter proved to be a good one for the industrial sector, and particularly so for multi-industry companies like 3M Co (NYSE:MMM) and Illinois Tool Works (NYSE:ITW). Both companies reported strong first quarters and raised their full-year revenue and earnings guidance. That said, they both currently trade on valuations that look expensive compared to previous years. . Let's take a look at the investment case for and against buying stock in 3M Co.

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Tuesday, June 27, 2017

Key Takeaways From General Electric Company Presentations

It hasn't been a great year for shareholders of General Electric (NYSE:GE), who have watched as the stock hassignificantly underperformed the S&P 500. Now, CEO Jeff Immelt is under pressure to reassure the investment community that the company is back on track toward its earnings and operational goals, and he sought to do just that with his presentation at the Electrical Products Group conference last week. Let's take a closer look at the key takeaways from the presentation.

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Where is UPS Going in 2017?

It's no secret that United Parcel Service, Inc (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are key beneficiaries of the e-commerce revolution. While that's good news from a revenue growth perspective, it's not necessarily a good thing from a margin and cash flow perspective. Both companies are facing margin pressure from growing e-commerce deliveries, and UPS in particular is having to ramp up capital expenditures and costs in order to support future growth.
In this context, let's take a look at what's going on at UPS and how it affects the investment proposition. 

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China in 2017

There is no shortage of economists predicting China GDP growth rates for 2017 from a top-down perspective, but what about looking at matters from a bottom-up approach? In that context, here's what leading industrial companies said about the first quarter and what to expect going forward.

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Thursday, June 15, 2017

General Electric Company Power Segment Analysis

On General Electric Company's (NYSE:GE) last earnings call, Citigroup analyst Andrew Kaplowitz raised a question attesting to fears that GE's power segment could be facing structural issues -- rather than "transient and cyclical" ones. It's actually a key consideration, because power is GE's historical strength, and gas turbines are still its single most important product. Let's take a look at the arguments for and against.

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AgroFresh Solutions Earnings Analysis

AgroFresh Solutions, Inc. , a company offering freshness solutions to growers of produce, pleased investors by reporting progress on its plans for 2017. Not only were its headline numbers better, but management also outlined improvements made from the implementation of its growth strategy. Let's take a closer look at the details from the quarter.

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Tuesday, June 6, 2017

BorgWarner Earnings Analysis

The auto industry is one of the most-discussed sectors of the industrial economy in 2017, and investors tend to watch the earnings results of automotive powertrain supplier BorgWarner Inc. (NYSE:BWA) for clues on where carmakers are heading. Let's take a look a closer look at the earnings

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Jones Lang LaSalle Earnings Analysis

Commercial property services company Jones Lang LaSalle Inc (NYSE:JLL) produced a solid set of first-quarter results on Friday and affirmed its full-year guidance. That said, investors will be wondering just how a 21% increase in fee revenue translated into a 12.9% drop in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), let alone a 45.1% decline in adjusted diluted EPS. Wait no further to find out.

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Sunday, June 4, 2017

Key Takeaways From United Technologies Earnings

One of the advantages of owning a stock trading at a discount to its peers comes from the notion that all the company has to do is report an OK-looking set of results and investors are likely to reward it. In this context, I would argue that although United Technologies Corporation's (NYSE:UTX) recent first-quarter results were good enough to satisfy investors, they contained a mix of positives and negatives. That said, here are the key takeaways from the earnings so you can make up your own mind.

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Illinois Tool Works Earnings Analysis

In general, it's been a good reporting season for industrial companies, and the results from diversified industrials such as Illinois Tool Works Inc. (NYSE:ITW) and 3M Co.(NYSE:MMM) stand out in particular. Both companies raised their full-year earnings and organic revenue forecasts and served notice of improving end markets. That said, both stocks now trade at valuations that are definitely not cheap on a historical basis.
Let's look at the key takeaways from Illinois Tool Works' recent earnings report and determine whether there's enough here to take the stock higher in 2017.

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Wednesday, May 31, 2017

Roper Technologies

The general theme from industrial companies in the current earnings season has been the return to growth of capital spending by energy and heavy industries, and the latest earnings report from Roper Technologies  confirmed the trend. However, the good news didn't stop there: Management unveiled some excellent operational performance in the quarter and its other end markets reported good conditions. Let's take a closer look at a strong quarter for the company.

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Tuesday, May 30, 2017

Why WESCO International Stock Price Fell in April

The stock price of industrial distribution company WESCO International (NYSE:WCC) fell around 12% in April driven by a disappointing set of first-quarter earnings. As you can see in the chart below it's not been a happy time for investors in industrial wholesale and distribution stocks. Fastenal Company (NASDAQ:FAST) and MSC Industrial Co Inc. (NYSE:MSM)have also reported disappointing results this earnings season

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Danaher Corporation Earnings Analysis

As you look across the industrials sector, Danaher Corporation (NYSE:DHR) jumps out, for two reasons. First, Danaher isn't your typical kind of cyclical industrial company. In fact, its collection of medical-focused and environmental businesses give it secular growth credentials, meaning its earnings can grow relatively uncorrelated to the ups and downs of the economy. Second, there's its valuation premium

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Monday, May 29, 2017

General Electric Company Cash Flow

After a difficult 2016 in which General Electric Company  failed to meet its original organic revenue growth target range, the company was under pressure to steady the ship in 2017. On the plus side, the recent first quarter was good from a headline perspective (revenue, earnings, margin etc); however industrial cash flow from operations (CFOA) came in $1 billion below expectations, with an outflow of $1.6 billion instead of the expected outflow of $600 million. Does that matter?

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Emerson Electric Earnings Analysis

It's been a pretty good earnings season for the industrials sector. Particularly so for companies with heavy exposure to oil & gas related capital spending. As such, expectations were for a good set of results from Emerson Electric Co.  and the company didn't disappoint with its earnings report on Tuesday. For the second time this year, CEO David Farr raised guidance and served notice that the dividend investors' favorite is on an improving uptrend. Let's take a look at what happened in Emerson Electric's second quarter.

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Check Point Software Earnings Analysis

Network security company Check Point Software Technologies Ltd. ( delivered another solid set of earnings recently, and served notice that its long-term strategic efforts in cloud, mobility, and threat prevention are starting to pay off. As a relatively mature market leader in its industry, Check Point isn't going to match the growth rates of rivals like Fortinet Inc. or Palo Alto Networks Inc. but management has taken steps to increase growth. Meanwhile, underlying growth and cash flow generation remains excellent.

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Saturday, May 27, 2017

Cognex Corporation Earnings Analysis

Machine vision company Cognex Corporation (NASDAQ:CGNX) continues to please investors by releasing guidance-busting results and winning large orders from customers in new markets.The first-quarter earnings report continued the company's run of strong earnings reports, and management signaled that it is on track to see a significant pickup in revenue in the second half. Let's take a look at Cognex's first quarter.

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Dassault Systemes Earnings Analysis

France-based engineering and design software company Dassault Systemes(NASDAQOTH:DASTY) produced a mixed set of results in its first quarter. The headline numbers were fine, and management sounded an upbeat tone with regard to its 3DExperience and Solidworks platforms, but new software license sales were lower than the forecast rate for the full year. Let's take a closer look at what happened.

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Wednesday, May 24, 2017

WESCO International

In an earnings season where other industrial-related companies such as Illinois Tool Works (NYSE:ITW)Dover Corp (NYSE:DOV) and CSX Corporation (NASDAQ:CSX) have reported strengthening conditions, WESCO International Inc.'s (NYSE:WCC) first-quarter earnings report and guidance were somewhat lackluster. Let's take a look at what happened in the quarter.

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Honeywell International Earnings Analysis

After a strong set of first-quarter earnings, investors in Honeywell International might have expected a bit more in terms of a guidance hike, but it's hard to be too churlish. The new CEO, Darius Adamczyk, can be forgiven for taking a conservative approach to guidance -- particularly after a difficult 2016 -- and the underlying fundamentals do seem like they are turning in the company's favor.
Let's take a look at the key takeaways from the earnings presentations.

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General Electric Earnings Analysis

In an act of almost poetic symmetry, General Electric Company's (NYSE:GE) latest results left investors confused. Whereas in previous quarters, the headline revenue guidance was down, but management gave assurances that the underlying performance was fine, this time around, it was the opposite. Simply put, the headline numbers were good, but the twist in the tale came from the magnitude of cash outflow in the quarter. There is a lot going on in the results, so let's take a look at the key takeaways from the earnings report.

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Tuesday, May 23, 2017

CSX Earnings Analysis

Railroads always give great color on the economy, and if the latest earnings report from CSX Corporation (NASDAQ:CSX) is anything to go by, then overall conditions are definitely improving in the U.S. industrial economy. That said, it's not an even recovery, and some parts of the economy are improving more than others. Let's take a look at the details in the latest numbers and what they mean for investors

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Illinois Tool Works Earnings Analysis

Diversified industrial specialist Illinois Tool Works (NYSE:ITW) did it again: The company's first-quarter results breezed past guidance, and management raised full-year expectations. It continues to outperform its end markets and expand operating margin. In addition, its segments most affected by the industrial weakness in the U.S. in 2016 are now starting to turn. There's a lot to look at, so let's dive into the details.

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Dover Corp Earnings

Dover Corp. (NYSE:DOV) is one of the most heavily oil and gas-focused industrial companies on the market. For example, at the start of 2013 the company's energy segment generated more than 40% of total segmental earnings. No prizes for guessing that that figure is a lot lower now -- less than 14% in recent first-quarter results -- but the segment looks to be in recovery mode, and management's commentary on the earnings call reads across well for other companies with oil exposure. Let's look, then, at Dover's earnings.

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Wednesday, May 17, 2017

Top Aerospace Stocks For 2017

A combination of multiyear backlogs at Boeing (NYSE:BA) and Airbus(NASDAQOTH:EADSY), and projections from industry bodies like the International Air Transport Association (IATA) for long-term passenger growth of 3.7%, make the aerospace sector very attractive for investors. I think large cap United Technologies Corporation(NYSE:UTX) and small cap Ducommun Incorporated (NYSE:DCO) are worthy investment candidates; here's why.

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Robert Half Earnings Analysis

Once again, investors in staffing company Robert Half International (NYSE:RHI) have been left wondering just when the company will see the benefits of a pickup in hiring by its customers. While its first-quarter 2017 earnings were at the high end of expectations, it certainly wasn't due to any increase in temporary or permanent hiring among its client base in the U.S. Let's take a closer look at what's going on.

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AZZ Inc Earnings Analysis

It's never a good thing when a company misses its current full-year guidance and then promptly reduces its guidance for the coming fiscal year, but that's the reality of AZZ Inc.'s (NYSE:AZZ) fourth-quarter earnings report. A combination of weak ongoing end-market conditions and the bankruptcy of Westinghouse hit AZZ hard. In short, it was another difficult quarter for the company. Let's take a closer look at what went wrong

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Value Stocks for 2017

Value stocks are attractive because there's usually something about them that limits the downside, whether it's a high dividend yield, a low price-to-earnings (P/E) ratio, or high free cash flow (FCF) generation. Investors can think of a value stock as having limited downside but good upside potential -- a good investment, in my book. Let's look at three good examples of value stocks you can buy right now. 

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Thursday, May 11, 2017

Genuine Parts Company Earnings

Genuine Parts Company (NYSE:GPC), owner of NAPA Auto Parts, became the first of the major auto parts companies to report earnings and sales for its first-quarter period ending on March 21.
The key issue to focus on is automotive group comparable sales, which can be seen in the chart below. I've also included the most directly applicable sales numbers for its peers, O'Reilly Automotive Inc (NASDAQ:ORLY)AutoZone, Inc (NYSE:AZO) and Advance Auto Parts, Inc. (NYSE:AAP). The disappointing sales performance of Advance Auto Parts is largely due to the effects of integrating a troublesome acquisition. 

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Electrical Equipment Stocks to Buy

Stock prices in the electrical equipment sector have been buoyed by a combination of expectations for an infrastructural stimulus, stabilization in oil and gas capital spending, and a general pickup in U.S. industrial production. While all three drivers are well founded, the market has seemingly baked them into companies' valuations and it's harder to find value in the sector. Still, I think there's a good case for buying stock in Parker-Hannifin Corp. (NYSE:PH)ABB Ltd. (NYSE:ABB), and Ingersoll-Rand plc (NYSE:IR) .

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Fastenal Earnings

Industrial supply company Fastenal Company (NASDAQ:FAST) recently reported its first-quarter earnings, and in common with its peer MSC Industrial Direct Co Inc (NYSE:MSM), the company beat sales expectations in the quarter. However, also like MSC Industrial, the stock sold off heavily post earnings.

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GE Earnings Preview

The next few quarters are extremely important for the investment thesis for General Electric Company . The stock has significantly underperformed the S&P 500 and the industrial sector over the last year or so amid fears that the company might miss its target of $2 in operating earnings per share. After a 2016 in which revenue estimates were significantly lowered throughout the year, investors need to see a few quarters of stabilization in order to regain confidence.
In this vein, let's analyze what to look out for in GE's first-quarter earnings on April 21.
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Wednesday, May 10, 2017

Emerson Electric Presentations

Emerson Electric Co.'s (NYSE:EMR) 3.2% dividend yield and 60-year history of increasing dividend payments makes it an income investor's favorite. However, following the divestitures of the network power segment and two industrial automation businesses, and a tough 2016 in which underlying sales fell 7%, investors might be concerned about its dividend growth prospects. Simply put, Emerson needs to get back to growth. With this in mind, here are some key takeaways from management's recent presentation.

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How FedEx Corporation Makes Money

How does FedEx Corporation (NYSE:FDX) make most of its money? That's a question worth investigating since the company's chief moneymaking segment has changed hands a few times in the past decade. Moreover, a fuller understanding of how the company operates will help investors appreciate what's happening with the investment propositions at FedEx and its main rival, United Parcel Service, Inc. (NYSE:UPS). Let's take a closer look.

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MSC Industrial Earnings Analysis

MSC Industrial Direct's second-quarter earnings came in broadly ahead of internal expectations, and management served notice of continued growth going forward. Let's take a look at the earnings and guidance from an upbeat quarter

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Friday, May 5, 2017

FedEx Corporation or UPS?

The perennial question facing investors in the package delivery industry: Should you choose FedEx Corporation (NYSE:FDX) or United Parcel Service (NYSE:UPS) stock? Or even buy both -- or avoid both? Let's take a look at the relative merits of each company and speculate on which stock is the better buy.

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3 Residential Construction Stocks to Buy

The U.S. housing market remains on a good trend, and provided that new household formation and employment growth continues, it's reasonable to expect continued growth. Which stocks are best placed to take advantage of residential construction growth? Lowe's Companies, Inc. (NYSE:LOW)Masco Corp. (NYSE:MAS), and Owens Corning(NYSE:OC) are three well-positioned names; here's why.

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3 Commercial Construction Stocks to Buy

With optimism high for an infrastructure stimulus, ongoing strength in the residential sector, and improving industrial production in the U.S., expectations for a strong commercial construction market in 2017 are well founded. But which stocks to buy? United Technologies Corporation (NYSE:UTX)Ingersoll-Rand (NYSE:IR), and Allegion (NYSE:ALLE) are attractive stocks for investors looking for exposure. Here's why.

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