Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
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Stock number one: Luminex Corporation
Luminex Corporation-- Zack's
Luminex Corporation (LMNX) posted impressive third-quarter 2014 results. Adjusted earnings (including stock based compensation) of 22 cents per share were well ahead of the Zacks Consensus Estimate of 10 cents per share.
Earnings per share (EPS) jumped sharply from a penny in the year-ago quarter driven by strong revenue growth and margin expansion.
However, despite several strategic and operating initiatives during the year, Luminex lowered its 2014 revenue guidance which raises our concern. Moreover, consumable and system sales are expected to be under pressure in the near term.
Symbol: LMNX
Trailing PE: 48; Forward PE: 31
PEG: 1.08
Dividend: NA
Estimate Trend: Na
Ransom Note Trendline: Avoid Luminex…unless of course you know what you are doing.
Stock number two: Coach Inc.
Coach Earnings, Sales Tumble As Makeover Takes Time--IBD.com
Coach (NYSE:COH) may be hoping for patience and foresight, but those are things that neither investors nor shoppers appear to have for the handbag maker. Shares are tumbling amid still-plunging North American demand and a slow brand makeover, despite a view-topping quarter.
Excluding transformation-related charges, first-quarter earnings fell 31.2% to 53 cents a share, topping analysts' estimates by 8 cents. Revenue dropped 9.7% to $1.04 billion, edging past forecasts for slightly more than $1 billion.
Symbol: COH
Trailing PE: 12; Forward PE: 16
PEG: 3.33
Dividend: 3.80%
Estimate Trend: Up
Ransom Note Trendline: Sell Coach
Stock number three: Twitter, Inc.
New Twitter Metrics Could Be Welcome Sight for Investors-- Wall Street Journal
Twitter 's TWTR -8.92% shares are getting slammed on Tuesday, in part because of a disconnect between company executives and Wall Street over how to measure the social media service…
But what’s missing from these snapshots is the big picture…. It’s likely that Twitter is not ready to release these numbers, still too fresh with just a few months of data to go on or too volatile amid ongoing tweaks to the product.
Symbol: TWTR
Trailing PE: NA; Forward PE: 116
PEG: 6.13
Dividend: NA
Estimate Trend: Up
Ransom Note Trendline: Hold Twitter