Stocks in the News

Posted: Aug 17, 2013 12:01 AM
Stocks in the News

Stock number one is: 

Applied Materials Inc., (SYMBOL: AMAT) and the headline says: Use Flat October Quarter Guidance to Buy Ahead – Citi Research

Semi-conductor equipment maker Applied Materials announced third quarter earnings a fraction below Street estimates, and named President Gary Dickerson as the new CEO.

"Applied Materials’ earnings are expected to fall this year, then increase rapidly.  S&P and CitiGroup reiterated a rosy future for the company in research reports today.  The dividend yield is 2.5% and the 2014 PE is 14, in a normal range of 14-32.

The shares appear to be completing a long-term trading pattern, and preparing to climb toward resistance at $20.  This undervalued but volatile stock could appeal to traders and most stock investors."

Our Ransom Note trendline says:  BUY APPLIED MATERIALS.

AMAT Chart

AMAT data by YCharts

Stock number two is: 

Sanofi, (SYMBOL: SNY) and the headline says: Earnings Down, Outlook Lowered at Sanofi  -- Zacks

French healthcare company Sanofi posted second quarter earnings way below consensus.  Zacks reports that problems include “generic competition, European pricing pressure and … inventory mismanagement in Brazil.”  Patented drugs continue to show strength.  Zacks and S&P are bullish on Sanofi’s new drug pipeline to treat M.S., diabetes, and colorectal cancer.

Earnings are projected to fall 13% or more this year, then rebound next year.  The annual June dividend yield is in the 2-3% range, and the PE is 15.

Sanofi’s stock broke past long-term resistance at $50 in March, and is trading between $50 and $56.  Value investors should jump in below $52.

Our Ransom Note trendline says..... HOLD SANOFI. 

SNY Chart

SNY data by YCharts

Stock number three is:

Nordstrom Inc., (SYMBOL: JWN ) and the headline says: Nordstrom Second Quarter Earnings Top Estimates – Fox Business

Nordstrom’s second quarter results beat estimates with strong eCommerce sales, sluggish retail revenues, lower operating expenses and tight inventory control.  Morgan Stanley commented, “We see Nordstrom as a core holding and would add to positions on pullbacks…”

Earnings are projected to grow 3, 12, and 13 percent over the next three years.  The PE is 16 and the dividend yield is 2.1%.

Nordstrom stock has been trading between $57 and $63 since early May, and is bouncing at support levels today.  Traders and investors should jump in below $58.

Our Ransom Note trendline says....  ACCUMULATE NORDSTROM.

JWN Chart

JWN data by YCharts

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.