Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.
Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.
Stock number one is:
Macy*s Inc., (SYMBOL: M) and the headline says:
Macy’s Profit Tops Estimates as Stock Buyback Boosted -- Bloomberg
Department store chain Macy’s Inc. reported first quarter earnings per share of 57 cents, vs. analysts’ estimates of 55 cents. The company increased its dividend by 25%, and added another $1.5 billion to its share buyback program.
Macy’s earnings are expected to grow 13-15% per year for the next three years. The PE is 12.4. The new dividend yield is 2.1%.
The stock is up 23% since we started recommending that investors buy Macy’s on Feb. 26. We would consider any price pullback to be a buying opportunity.
Our Ransom Note trendline says: ACCUMULATE MACY’S AT $45
Stock number two is:
Deere & Co., (SYMBOL: DE) and the headline says:
Deere announces record second-quarter earnings of $1.084 billion – Quad Cities Online
Farm equipment manufacturer Deere & Co. reported a solid second quarter today, slightly beating Wall Street’s earnings estimates. However, the company guided annual revenue projections downward. The weak global economy is affecting Deere’s construction sales, while farm sales remain strong.
Deere’s earnings growth has been rapid in recent years, and is expected to slow to 3-4% in 2014 & ‘15. The dividend yield is 2.3%. The current PE is 10.4.
The stock has been in a trading range for almost three years, and will likely trade between $87 and $95 near-term. With earnings growth slowing dramatically, ….
Our Ransom Note trendline says: STAY ON THE SIDELINES.