Thursday, September 28, 2017

AgroFresh Earnings Analysis

It was a relatively uneventful quarter for AgroFresh Solutions, Inc. (NASDAQ:AGFS), and that's fine for investors. The company's earnings reports have caused a significant amount of stock price volatility in the past. However, this time around the results were pretty much as expected, and investors slept soundly after them. That said, what really matters for the company are the upcoming quarters (which contain the northern hemisphere fruit harvest). With this in mind, let's take a look at the results and commentary from the second-quarter earnings report.

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HVAC Sector Stock Analysis

Following a strong rise in the past year, Ingersoll-Rand PLC's (NYSE:IR) stock has corrected in recent weeks alongside competitors in the heating, ventilation, and air conditioning (HVAC) space such as United Technologies Corporation (NYSE:UTX) and Lennox International Inc. (NYSE:LII). Clearly, something about the HVAC sector has spooked the market, so let's take a look at the underlying dynamics in all three companies' earnings, and specifically Ingersoll-Rand as an investment proposition. Is it a structural problem that's set to last or merely a temporary issue?

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Monday, September 18, 2017

How Caterpillar Makes Money?

Analyzing how Caterpillar Inc. (NYSE:CAT) makes money is a useful exercise for investors because it sheds light on what investors need to know before buying the stock right now. In a nutshell, the stock's near-40% rise in the past year has been propelled by its positive earnings momentum, which is largely due to an improvement in its end markets. So in order to take a view on whether this can continue, it's useful to know how Caterpillar makes money

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Friday, September 15, 2017

3M Company Earnings Analysis

3M Company (NYSE:MMM) needs sales growth. Just like peer Illinois Tool Works (NYSE:ITW), its stock price is starting to look heady -- both companies are trading in excess of their pre-recession valuations -- and it needs growth now in order to justify its rating. Moreover, with 3M's CFO Nick Gangestad claiming dividend growth would "be very similar to what we anticipate for earnings-per-share growth," 3M needs sales and earnings growth in the future -- a near 2.2% dividend yield isn't particularly exciting. Can 3M Company increase its growth rate? 

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What General Electric Company Needs to Learn From Honeywell International

A quick look at the relative stock price performances of Honeywell International (NYSE:HON)and General Electric Company (NYSE:GE) in 2017 shows a nearly 40% outperformance by the former. How is this so? Both companies are diversified industrial conglomerates with many end markets in common, particularly aerospace, so their stock prices should be roughly correlated, right?

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