Stocks in the News

Posted: Jul 24, 2013 12:01 AM

Stock number one is: 

Texas Instruments Inc., (SYMBOL: TXN) and the headline says:

Estimates Up Slightly due to Better than Seasonal Third Quarter and Gross Margins – Morgan Stanley Research

Analog-chip maker Texas Instruments is guiding third quarter revenue and earnings estimates higher on broad-based end demand, strength in communication infrastructure, and lean inventories; boding well for the entire peer group.  Second quarter results came in on target, with sustainable improvement in gross margins.

Earnings are expected to grow 4 and 23 percent over the next two years.  The PE is 23 and the dividend yield is 2.88%.

The stock is pushing up against long-term resistance at $39 and appears capable of climbing immediately.  S&P says, “We believe solid management execution and an industry recovery will drive shares higher.”

Our Ransom Note trendline says:  BUY TEXAS INSTRUMENTS.

Stock number two is: 

Domino's Pizza Inc., (SYMBOL: DPZ) and the headline says:

Domino’s Pizza Second Quarter Profit Climbs 18% --

Domino’s Pizza reported a good second quarter, beating expectations on earnings, revenues; and domestic & international same-store-sales.

Earnings are expected to grow 19, 14, and 15% over the next three years.

The stock is up 34% since we recommended it on Ransom Notes Radio on February 28.  Domino’s shares broke out of a trading range in early July, and are still climbing.

Our Ransom Note trendline says..... HOLD DOMINO’S PIZZA.

Stock number three is:

E.I. DU PONT DE NEMOURS & CO , (SYMBOL: DD) and the headline says:

DuPont Exploring Options for Teflon, Titanium Pigment -- Bloomberg

DuPont is considering the possible sale or spin-off of its Performance Chemical segment, as the company aims for higher revenue growth and earnings stability.  After a negative earnings pre-announcement in June, DuPont’s second quarter earnings came in slightly above expectations today.

Earnings are expected to grow 16, 12 and 12 percent in the next three years.  The PE is 15, within a five-year range of 10 to 24; and the dividend yield is 3%.

DuPont stock broke past three-year price resistance last week.  Expect it to climb immediately.

Our Ransom Note trendline says....  BUY DUPONT.