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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