Thursday, January 26, 2017

Cognex Corporation Could Have a Great 2017

Machine-vision company Cognex Corporation (NASDAQ:CGNX) is not a cheap stock by either current valuations or near-term analyst estimates. Moreover, the stock has more than doubled in the past year, leaving investors wondering whether there is more to come in 2017. Arguably, Cognex needs to beat analyst estimates to move significantly higher this year, but I think there's good reason the company might just do that, and here's why.

READ THE FULL ARTICLE LINKED

Is Rockwell Automation a Stock to Buy for 2017?

Rockwell Automation's strong rise in 2016 is reflective of a general change in sentiment toward industrial stocks that took place as the year progressed. So how are the company and stock positioned for 2017? Can Rockwell's stock have another strong year?

READ THE FULL ARTICLE LINKED

Saturday, January 21, 2017

A Review of GE's Jeff Immelt

To be a successful equity fund manager you need a healthy combination of luck and skill in stock/sector selection. To be a CEO of a blue chip company, you need a similar skill set when setting the strategic direction of the company. Unfortunately, General Electric Company (NYSE:GE) CEO Jeff Immelt hasn't had much luck with end markets, and it's arguably only in the latter quarter of his tenure that his skill has shone through. Let's take a look at the difficulties during his tenure and how he's put the company in great shape now

READ THE FULL ARTICLE LINKED

Friday, January 20, 2017

Can Illinois Tool Works Stock Rise in 2017?

Illinois Tool Works Inc. rose by nearly a third in 2016, and the company's earnings prospects look good in 2017. On a risk/reward basis, however, the stock looks fully valued. While it looks cheap relative to peers like 3M Co or Lincoln Electric Holdings, Inc , it's not necessarily a good value in itself. Let's take a look at what you need to know before buying or selling the stock.

READ THE FULL ARTICLE LINKED

Dover Corp's 2017 Outlook Suggest Oil Spendng is Coming Back

Dover Corp  gave an investor presentation on Thursday confirming its 2016 guidance for EPS in the range of $3 to $3.05 and also initiating its 2017 outlook. It was a broadly positive, but not spotless, outlook, and investors in companies like General Electric Company and AZZ Inc can take heart from what was said about upstream oil spending.

READ THE FULL ARTICLE LINKED

MSC Industrial Earnings Review

It's been a long time coming, but it finally looks like the U.S. is coming out of an industrial recession. At least it does if the latest results from MSC Industrial Direct  are anything to go by. Industrial supply companies tend to have short sales cycles -- rendering them useful as bellwethers of change -- and MSC Industrial's positive earnings and outlook suggest the industrial sector may have bottomed. Let's take a closer look at the report.

READ THE FULL ARTICLE LINKED

Sunday, January 15, 2017

Caterpillar or Illinois Tool Works For 2017?

Back in May, Caterpillar Inc. looked like a better buy than Illinois Tool Works on a risk/reward basis. In the end, Caterpillar's greater upside exposure to rising oil prices helped it win out. However, will that be the case going forward?
Let's cut to the chase. Given the choice of the two, I think Illinois Tool Works is currently better placed, for three main reasons.

READ THE FULL ARTICLE LINKED

Ingersoll-Rand Stock for 2017?

Ingersoll-Rand plc stock rose more than a third last year, but is there room to run in 2017? Let's take a look at three of its growth drivers this year, including an analysis of outlook given by its main competitors in its key climate segment. There's a lot to like about what management is doing with the company and the stock deserves careful consideration.

READ THE FULL ARTICLE LINKED

Friday, January 13, 2017

Honeywell International, Celanese and Boeing Co Want to Increase Cash Flow

Free cash flow generation is the key to generating long-term value for shareholders, and there are three companies I'd like to look at that are planning on generating strong cash flow in 2017. First, Honeywell International Inc. (NYSE:HON) is set to significantly increase FCF in the coming years as it comes out of a period of high investment. Meanwhile, specialty materials and chemical product company Celanese Corporation (NYSE:CE) looks set to continue its remarkable transformation into a highly cash-generative operation. And finally, Boeing Co.'s (NYSE:BA) stock might sink or swim based on whether it meets its FCF guidance.

READ THE FULL ARTICLE LINKED

AZZ Inc Earnings Review

The market has been merrily pricing in a recovery in industrial market conditions, most notably in oil and gas-related spending, but the latest results from galvanizing and specialty electrical equipment company Azz Inc suggest the recovery may take longer than some might have expected. Let's look at the earnings and management's commentary.

READ THE FULL ARTICLE LINKED

Thursday, January 12, 2017

Billionaires Love These Three Stocks

While it's never a good idea to slavishly follow billionaire investors into stocks, monitoring their portfolio positions usually uncovers some interesting ideas. In this vein, let's look at three stocks that the investment vehicles of Ray Dalio, Warren Buffett, and George Soros have recently bought -- namely, IT titan International Business Machines Corporation , commercial-vehicle technology company WABCO Holdings Inc. and cybersecurity software company Fortinet, Inc.

READ THE FULL ARTICLE LINKED

Wednesday, January 11, 2017

General Electric is a Special Situations Investment For 2017

Anyone who thinks investing in General Electric Company  stock is merely a proxy for the U.S. industrials sector or even the S&P 500 needs to think again. In the past three years, the stock's performance has decoupled from both, and arguably it could do again in 2017. Let's look at what's been going on and what to expect from the industrial giant in the coming year.

READ THE FULL ARTICLE LINKED

Oracle and Cisco Systems Are Cash Cow Investments

Tech titans Oracle Corporation (NYSE:ORCL) and Cisco Systems, Inc. (NASDAQ:CSCO) are cheap on a price-to-earnings basis and they generate buckets of free cash flow (FCF). Their FCF generation combined is about as much as the GDP of Uganda's 38 million people. Even if all they did was grow earnings and FCF in line with inflation, they would be raging buys. But, of course, investing is rarely this simple, so let's take a look at what you need to know before deciding whether to buy these large-cap cash cows.

READ THE FULL ARTICLE LINKED

Friday, January 6, 2017

Home Depot and Lowe's Companies are Stocks to Buy and Hold Forever

OK, hands up. I'm cheating. It's supposed to be one stock idea, but The Home Depot, Inc and Lowe's Companies, Inc. are largely interchangeable companies, so in order to diversify stock-specific risk, it's a good idea to buy both of them together. But why are home improvement retailers the kinds of stocks you can buy and hold forever? I'll explain.

The arguments can be split into two separate streams. The first focuses on end markets, and the second on the companies' operational and competitive positioning.

READ THE FULL ARTICLE LINKED

What FedEx Earnings Mean For UPS Investors

FedEx Corporation  gave its second-quarter results a few days before Christmas, and what management had to say is highly relevant for investors in key rival United Parcel Service, Inc. . Here's a look at five things from the earnings presentation that give clues to what UPS will report in its next earnings.

READ THE FULL ARTICLE LINKED