Stocks in the News: Oil, Pharma, and Cable

Posted: Aug 01, 2013 12:01 AM

Stock number one is: 

Comcast Corp., (SYMBOL: CMCSA) and the headline says:

Comcast Earnings: Profit Rises on Higher Cable, NBC Revenue – The Wall Street Journal

Comcast reported an outstanding second quarter, surpassing Wall Street estimates on revenue, earnings, cash flow, and new subscribers.  The successes spanned both its cable TV, voice and internet services; and its wholly-owned NBC Universal unit.  In addition, Comcast is launching the X1 Platform entertainment operating system from Xfinity in Michigan, representing an innovative TV entertainment experience.

Wall Street expects Comcast’s earnings to grow 24, 16, and 18% over the next three years.  The PE is 19 and the dividend yield is 1.7%.

On June 10, we told listeners to buy Comcast shares.  The stock has risen 10% since then.  There’s much more upside to Comcast stock.

Our Ransom Note trendline says:  BUY COMCAST.


CMCSA data by YCharts

Stock number two is: 

Weatherford Int'l Ltd., (SYMBOL: WFT) and the headline says:

Weatherford Reports Second Quarter 2013 Results -- Reuters

Oil & gas service company Weatherford International reported second quarter revenue and earnings in line with Wall Street estimates, with significant improvements in free cash flow and capital expenditures.  North American and Latin American revenue and earnings are expected to improve later this year.

Wall Street expects earnings per share to grow  38%, 58% and 33% in the next three years.  The PE is 17.7.

On April 8, we told listeners to buy Weatherford shares in the wake of GE’s offer to buy competitor Lufkin Industries.  The stock is up 13% since then, and there’s lots more room for appreciation, based on aggressive earnings growth, low valuation, bullish chart, and takeover speculation.

Our Ransom Note trendline says..... BUY WEATHERFORD INT'L.

WFT Chart

WFT data by YCharts

Stock number three is:

Alexion Pharmaceuticals Inc., (SYMBOL:  ALXN) and the headline says:

Alexion Said to Enlist Goldman to Advise After Roche Move -- Bloomberg

Alexion Pharmaceuticals has hired Goldman Sachs Group as an adviser, in preparation for a friendly or hostile takeover offer from Swiss drugmaker Roche Holding AG.  Roche is interested in adding Alexion’s successful drugs and pipeline to enable corporate growth.  However, Citi Research says, “We do not expect Alexion to be acquired.”

Wall Street expects Alexion to increase earnings per share another 42% in 2013.  The PE is 38.

In February, we told listeners to buy Alexion under $90.  The stock is up 29% since then, and is breaking out of another trading range this week.  There’s downside risk if a buyout doesn’t materialize.  Aggressive growth investors should use stop-loss orders.

Our Ransom Note trendline says....  BUY ALEXION PHARMACEUTICALS.

ALXN Chart

ALXN data by YCharts