Stock number one is:
Wal-Mart Stores, Inc., (SYMBOL: WMT) and the headline says: Wal-Mart Cuts Profit Forecast as Higher Taxes Damp Sales -- Bloomberg
Wal-Mart missed analysts’ earnings projections for the fifth straight quarter, as payroll taxes and poor global economies impacted today’s second quarter earnings report. The company guided analysts a little lower on full-year earnings projections, and cut its full-year revenue growth projections in half.
To offset economic woes, Wal-Mart is aiming to double its sales of beer and liquor by 2016.
The stock appears to be bouncing at support levels today. Expect it to trade between $74 and $79 in the foreseeable future. Growth stock investors should trade out in the upper $70’s for better opportunities.
Our Ransom Note trendline says: HOLD WAL-MART.
Stock number two is:
Cisco Systems Inc., (SYMBOL: CSCO) and the headline says: Cisco Cutting Jobs as Revenue Forecast Misses Estimates -- Bloomberg
Network equipment maker Cisco Systems reported fourth quarter earnings up 18% and revenue up 6% year-over-year, led by strength in its enterprise business. However, economic weakness in international markets is hampering Cisco’s growth goals. The company announced plans to lay off another 4000 employees, totaling 12,300 in the last two years.
Cisco’s earnings are projected to grow 9, 5 and 8% over the next three years. The PE is 12 and the dividend yield is 2.78%.
Expect the stock to trade between $24 and $26.50 in the near-term. Traders could make money short-term.
Our Ransom Note trendline says..... HOLD CISCO SYSTEMS.
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Stock number three is:
Agilent Technologies, Inc. (SYMBOL: A) and the headline says: Right Batting Order But Wind Still Blowing In -- Citi Research
Measurement company Agilent Technologies reported a strong third quarter, soundly beating analyst estimates. S&P commented, “Agilent reported its best quarter in a year, with in-line revenues & [earnings per share] upside via continued cost control. [W]e think new products and emerging markets will drive sales, and further cost efficiencies and buybacks will aid [earnings per share].” Morgan Stanley said, “Agilent has a multi-year margin [expansion] opportunity that is largely insensitive to economic conditions.”
Earnings are expected to fall about ten percent this year, then resume growth in 2014 & 2015.
The stock broke out of a short-term trading range today. Expect it to pause when it hits longer-term resistance at $52. Traders can still jump in today.
Our Ransom Note trendline says.... HOLD AGILENT TECHNOLOGIES.
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.
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