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:
Petrobras, (SYMBOL: PBR) and the headline says:
Cautious Short-Term Outlook Continues – Citi Research
Brazil’s oil & gas company, Petrobras, is expected to suffer a large second quarter foreign exchange charge. “[W]e estimate Petrobras will have higher net debt than market value by the end of the year,” says Citi Research.
Earnings are expected to increase 22, 7 and 9 percent over the next three years. Dividend payments are irregular, totaling approximately 3% per year.
The stock is actively falling to eight-year lows, with no price support in sight.
Our Ransom Note trendline says: SELL PETROBRAS.
Stock number two is:
Nielsen Holdings, (SYMBOL: NLSN) and the headline says:
Nielsen Set to Join the S&P 500 -- Bloomberg
Information and measurement company Nielsen Holdings will replace Sprint Nextel Corp. in the Standard & Poor’s 500 Index after the end of trading today.
Nielsen’s earnings are expected to increase 16, 11 and 10 percent over the next three years. The dividend yield is 1.8%.
The stock broke out of a medium-term trading range in February, and is currently trading between $33 and $37. The chart pattern is neutral, but constructive.
Our Ransom Note trendline says: HOLD NIELSEN HOLDINGS.
Stock number three is:
MasterCard Inc., (SYMBOL: MA) and the headline says:
Barclays Raises Rating & Target Price on MasterCard – Reuters
Barclays raised its price target on MasterCard Inc. today to $650, with a new rating of “overweight”. The stock has risen from $540 to $600 since we recommended it on Ransom Notes on May 1.
MasterCard’s earnings are projected to grow 15-19% per year for the next three years. The company has $5 billion in cash, no debt, and a $1.7 billion share repurchase program.
After our May 1 recommendation, the stock rose to a new trading range, then broke out again on Friday, reaching over $600 today. The chart remains bullish.
Our Ransom Note trendline says: BUY MASTERCARD.