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:
Nike Inc., (SYMBOL: NKE) and the headline says:
Nike's Earnings Beat Estimate – Zacks
Nike Inc. reported fourth quarter sales, earnings, and global futures which beat Wall Street estimates. Product innovation and sports events are driving top-line growth in most geographic regions. Citi Research commented on high cash balances, saying “we think management could be ready to accelerate share repurchases and/or dividend increases.”
Earnings are expected to grow another 13-15% in each of the next two years. The PE is 20.4 and the dividend is 1.4%.
We urged investors to buy NIKE twice in March. The stock then rose 20%. The new trading range is $59 to $66.
Our Ransom Note trendline says: BUY NIKE BELOW $62.
Stock number two is:
Research in Motion, (SYMBOL: BBRY) and the headline says:
BlackBerry Plunges After Smartphone Maker Reports Loss -- Bloomberg
Research in Motion, maker of BlackBerry smartphones, reported a first quarter loss on lower than expected unit shipments, service revenues, and gross margins. The stock is down substantially today, after the Street expected a profitable quarter.
The new BlackBerry 10 sales are doing well, and the company may earn a small profit in fiscal 2014 after losing money in the first two quarters, but is expected to lose money again in 2015.
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On March 25 and June 18, we said SELL, due to projections of falling revenues and net losses.
Our Ransom Note trendline says: SELL RESEARCH IN MOTION.
Stock number three is:
Accenture PLC, (SYMBOL: ACN) and the headline says:
Accenture's Third Quarter Earnings Beat, Revenues Miss – Zacks
Accenture PLC, the world’s second-largest technology-consulting company, disappointed Wall Street with flat third quarter sales. U.S. revenue growth was up 7%, but international was weak. Earnings were a little higher than expected, driven by good operating margins.
"Bulls can focus on strong increases in new contracts in the recent two quarters; and share buybacks of approximately $1.4 billion are seen in the recent and next quarters. Annual earnings growth is being revised down to about 9% this year.
The stock lost all of this year’s gains today, and will likely find support in the low $70’s. It’s too late for fair-weather investors to sell on today’s stock overreaction.
Our Ransom Note trendline says: HOLD ACCENTURE
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