Stocks in the News: Obamacare Claims More Victims

Crista Huff
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Posted: Sep 19, 2013 12:01 AM
Stocks in the News: Obamacare Claims More Victims

walgStock number one is:

Walgreen Co., (SYMBOL: WAG) and the headline says: Walgreens Boots 120,000 Employees Off Healthcare, Tells Them To Go Buy Their Own Plans – Democratic Underground

Walgreen Company plans to shift 120,000 employees to a private healthcare exchange, in a move designed to avoid the extraordinary financial burden of the Obama administration’s Affordable Healthcare Act. Walgreen will contribute a fixed amount toward the purchase of the health insurance, although whether employees will be able to afford to pay the rest of the bill will depend on their personal financial situations.

Earnings are expected to grow 11-15 percent per year over the next three years. The PE is 17.6 and the dividend yield is 2.3%.

Walgreen stock broke past long-term resistance last week. Growth & income investors have definitely not missed an opportunity to buy Walgreen shares and catch the next upward movement.

Our Ransom Note trendline says: BUY WALGREEN COMPANY.

WAG Chart

WAG data by YCharts

Stock number two is:

FedEx Corp., (SYMBOL: FDX) and the headline says: FedEx profits rise 7 percent – News Daily

FedEx reported a good quarter, despite fuel surcharges, with lower pension and aircraft maintenance expenses. Citi Research was pleased with better-than-expected margins, income, and expenses, and commented, “We believe conservative guidance provides a clear runway of cost-driven improvement and potential outperformance in the coming quarters, and allows for further upside in an improving economy.”

2014 & ’15 earnings growth is expected at 12 and 25 percent. The PE is 16.3.

The share price is up 16% since we told investors to accumulate FedEx under $98 in early June. The stock broke out of a trading range today, and could reach $120 where it will hit long-term resistance.

Our Ransom Note trendline says..... BUY FEDEX.

FDX Chart

FDX data by YCharts

Stock number three is:

Adobe Systems Inc., (SYMBOL: ADBE) and the headline says: Adobe Creative Cloud Surpasses One Million Subscriptions in Third Quarter – Business Wire

Software leader Adobe Systems’ stock launched upward to new highs today after adding another 331,000 new Creative Cloud subscribers in the third quarter, exceeding Wall Street estimates of 263,000. The company expects a slightly larger subscriber growth in the fourth quarter, and is experiencing higher retention than originally assumed.

Adobe has been sacrificing short-term revenue and earnings from traditional up-front software purchases, and implementing a monthly subscription model for its popular graphic-design products. In that light, earnings will be down this year, but are expected to grow 18 and 30 percent in the next two years.

The stock price is up 12% since we told investors to buy Adobe in June. The stock, which broke past resistance today, could briefly bounce below $50 again before climbing higher.

Our Ransom Note trendline says.... BUY ADOBE SYSTEMS.

ADBE Chart

ADBE 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.