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https://www.cnbc.com/id/100127353

SRE

Sempra Energy

INSIGHT-Delays dog U.S. government loans to green energy projects

* For subset of 19 loans, $5.1 bln left to go out the door * Four projects have not received any money * In one case, payment of more than $7 mln held up over $100 invoice * Caution shows government taking appropriate care-CEO By Ayesha Rascoe and Roberta Rampton WASHINGTON, Oct 2 (Reuters) - A year after the U.S. government raced to meet a deadline to finish loan agreements with dozens of clean energy companies, less than half the total money promised has been handed over. Technical questions and companies' own failures in hitting contractual milestones are behind some of the holdups. But government officials fearful of taking a risk on firms that could collapse may have also caused some of the delays. The political firestorm after the failure of Solyndra, a solar panel maker that went bankrupt last year after receiving more than $527 million in a government loan, may have made the authorities wary, industry experts and investors say. The Energy Department and some companies say the pace of disbursement reflects an appropriately cautious approach to handling taxpayer investment in nascent industries. In some cases, though, the rigid approval process for drawing on loans has frustrated recipients, who feel the government is withholding cash due to minor setbacks. A Reuters analysis of Treasury Department data on payments to 19 solar, wind and geothermal power projects of the 26 in the Energy Department's portfolio shows that the pace at which funds have been released has been slow and uneven. Funding for the other seven loans, amounting to a combined $5.6 billion, comes from private lenders, with the Energy Department guaranteeing 80 percent of the principal. The department declined to discuss these loan disbursements. (For a graphic, see ) The Treasury Department data provides a glimpse into how things are faring for the program, which the Obama administration hailed as a major job creator that would help wean the United States off its dependence on foreign sources of fossil fuels. The program was crafted during the Bush administration but funded as part of the 2009 economic stimulus. "One of the things it tells you is that the program became highly politicized and it gridlocked the process of doling out money," said Theodore O'Neill of Litchfield Hills Research, after seeing the results of the Reuters review. The Solyndra failure has become a stock part of stump speeches leading up the Nov. 6 U.S. elections, including those of Republican presidential candidate Mitt Romney, who argues that the government should not be in the business of picking winners and losers. He says Washington is not good at it, and should not put taxpayer money at risk in the process. Only 47 percent of the total approved funding, or $4.9 billion, had gone out the door by Aug. 31 for the 19 projects receiving their loans directly from the Federal Financing Bank, a division of the Treasury Department. Four projects have not received any of their promised funding, including two solar manufacturing projects that O'Neill and other analysts say have only faint hope of reaching viable commercial production because of stiff competition from China. Another five projects have received less than half the loan funds that were pledged. Some projects have seen disbursements withheld until they meet contract milestones with the Energy Department, which approves the payments. "Whatever it is, things are not going right with their original investment," said Jim Nelson, a solar cell entrepreneur who had a long career in private equity, including working at Bain and Co with Romney. For critics like Nelson, the slow pace of loan disbursement is one more sign that the government is not an efficient financier. He said he does not expect his company, Solar 3D, to need government help to commercialize its technology. AWKWARD PARTNER Renewable energy projects in general have been hurt by low natural gas prices, uncertainty about federal tax credits, and the failure of Congress to legislate a federal mandate for using solar, wind and geothermal power. Loan recipients also faced more government scrutiny after the failure of Solyndra, which received monthly payments right up until seven days before it shut its doors. Since then, the government has withheld money for projects with signs of technical problems. But that can lead to a "downward spiral," said one private investor familiar with some of the projects. Without the money, the companies can't fix the problems - and unless they are resolved, it is difficult for the firms to seek additional private capital they need to keep going, the investor said. Earlier this year, a geothermal project at a hot springs in eastern Oregon ran into technical issues. An injection well U.S. Geothermal had drilled was performing below expectations, and before the Energy Department would release regular monthly disbursements, the company needed to show it had equity to cover additional drilling costs. "We found ourselves responding to a significant amount of questions" from the government, said U.S. Geothermal's CEO Daniel Kunz, noting that the delay meant one small local contractor had trouble paying employees. U.S. Geothermal went without monthly disbursements again in June and July because of government questions about a single $100 invoice that held up more than $7 million in payments. "They got into some real minute issues, and they're entitled to do that," said Kunz, who stressed that he was grateful for the loan. When it came to the additional drilling costs, U.S. Geothermal turned to its equity partner, Enbridge Inc , a Canadian pipeline company and original investor. Enbridge kicked in an extra $6 million in exchange for hiking in its ownership stake from 27 percent to 40 percent. Kunz expects the project will be producing power, which it will sell under a long-term sales contract, by the year's end. Abound Solar was not as fortunate. After receiving 17 percent of its $400 million government loan, the solar panel manufacturer's payments were cut off by the Energy Department in August last year because panel prices had collapsed. "While we understood the increasing market risks driving this decision, and understood the technical justifications in the loan documents, we also knew that it put enormous financial strain on our small company," Chief Executive Craig Witsoe told lawmakers in July, shortly after Abound filed for bankruptcy. CAUTIOUS PACE More than 12 percent of the money that has been handed out by the Treasury so far went to Solyndra, Abound and Beacon Power, an energy storage project that also later filed for bankruptcy. Kevin Smith, CEO of Santa Monica, California-based SolarReserve, worries that all the loan projects are getting unfairly characterized as duds to score political points. SolarReserve got a $737 million loan guarantee for a solar plant in Nevada, the largest of its type in the world. "To use these short-term successes and failures to play politics is just too dangerous for us as a nation," he said, adding that there should be a long-term view on the need to move away from fossil-based fuels. Smith said he considered the government's cautious pace of loan disbursement appropriate. "The level of scrutiny by the Department of Energy and their advisors is at a much higher level than you would see in commercial project finance." For the 19 projects covered in the Treasury Department data, the Energy Department declined to comment on whether there are targets or goals for getting the $5.1 billion remaining in promised loans released. "The portfolio has been thoroughly evaluated by independent experts who determined that our practice of ensuring loan recipients can only access loan funds gradually as they meet financial and construction milestones is an important protection for the taxpayers," Damien LaVera, an Energy Department spokesman, said in an e-mailed statement. "In some cases, the agreements specifically require significant portions of the equity in a project to be raised before any loan funds can be disbursed," LaVera said. NO MONEY YET Four projects promised Treasury Department loans have yet to see any disbursements, including Abengoa's cellulosic ethanol plant in Kansas. Abengoa's executive vice president, Chris Standlee, said he expects the ethanol project to begin drawing on the loan soon. Its plant has been under construction for a year, and the terms of the loan require that it use its own equity first. Another company still waiting to tap its $197 million loan, SoloPower, opened a solar panel manufacturing plant in Portland, Oregon last week. The company can begin to tap funds once it begins shipping panels. SoloPower's chief executive Tim Harris said he believes his company underwent a more rigorous review than Solyndra. "Our initial due diligence was 14,000 pages," Harris said. "I call us the most heavily due-diligenced company in the world. It sure feels that way." HUNDREDS OF MILESTONES SolarReserve's power plant in Nevada has about 200 milestones for which paperwork must be submitted to the Energy Department. The Crescent Dunes plant will use thousands of mirrors to reflect sunlight onto a tower of molten salt, where heat will be stored until it is needed to create power. The project is a year into its 30-month construction schedule. By the end of August, it had received only 21 percent of its loan, which CEO Smith said reflected the typical pace of building a plant. Most of the early project work focused on engineering and procurement, Smith said in an interview. But Crescent Dunes will soon enter the most cash-intensive part of construction and in the next few months, employment will jump from 220 to about 600. While Smith said his funding was on schedule, he said the government did not move as swiftly as a private-sector lender because it required more documentation and had more levels of review. It took two years to finalize the loan guarantee, a process that in the private sector would take six to eight months. Still, Smith said the program filled a "commercialization gap" for an emerging industry struggling to find lenders after the 2008 financial crisis. "Trying to finance that ... two years ago when we were still in the heart of economic downturn was virtually impossible," he said. (Additional reporting by Nichola Groom in Los Angeles; Editing by Martin Howell, Karey Wutkowski and David Brunnstrom) ((roberta.rampton@thomsonreuters.com)(Twitter @robertarampton)(+202 898 8390)) Keywords: USA ENERGY/LOANS

https://www.cnbc.com/id/47648912

SRE

Sempra Energy

Lightning Round: First Solar, MarkWest Energy, Allegiant Travel and More

MarkWest Energy :Most every master limited partnership stock is in "free fall" right now, making it a good time to buy some shares of MWE, Cramer said. Sempra Energy : This energy stock has provided a good return lately, Cramer noted, adding he's currently bullish on SRE. Allegiant Travel : The falling price of oil has helped this airline operator's stock lately, Cramer said. Even so, he recommends taking profits right now. Hertz Global : This stock doesn't pay a dividend and is a little too "economically sensitive" for Cramer's taste, but he still blesses buying some shares at current levels. Should it fall under $10 a share, he would buy even more. Read on for Cramer’s Housing Rebound Plays Call Cramer: 1-800-743-CNBC Questions for Cramer? madmoney@cnbc.com Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

https://www.cnbc.com/2023/10/24/exercises-to-do-after-zoom-calls-from-a-celebrity-trainer.html

SRE

Sempra Energy

Do these 5 quick exercises after a Zoom call to increase your energy, says a celebrity trainer

If you're reading this, chances are good that you may have one or more virtual meeting on your calendar during your average workday. From 2020 to 2022, the percentage of remote workers who use video conferencing platforms like Zoom or Microsoft's Teams rose from 48% to 77%, according to Webex's guide for virtual meetings. But the rise of virtual calls and remote work can keep you more sedentary, and this can have harmful consequences on your body. "Many people spend between six and eight hours a day on Zoom calls, which means in general, unless you have a walking desk, you're sitting for an extended period of time," says Kira Stokes, a celebrity trainer and founder of Kira Stokes Fitness. "What happens when you sit is you tighten your hip flexors," she says. "And you're also sitting on your butt which means you're not engaging your glutes." DON'T MISS: Get up from your desk and do these 8 nature activities to improve your mood, productivity and memory Not to mention that depending on how you're sitting, you may also be straining your neck or experiencing lower back pain. Sitting for most of the day has also been associated with an increased risk of dementia, according to a JAMA study published in September. The next time you get off a long call, Stokes recommends trying these exercises to counter the negative effects of being sedentary. 5 easy exercises you can do after a Zoom call to stay active 1. Glute bridges Littlebee80 | Istock | Getty Images Lay on the floor with your feet hip width apart and your knees bent. Then lift your glutes off of the floor while engaging your core. "[Bridges] actually work on hip extension, which is the opposite of hip flexion, and they get your glutes engaged," Stokes says. Placing a resistance band around your knees during the exercise can also engage the side muscles of your glutes, which can help to stabilize your lower back. 2. Standing banded kickbacks Stand in a quarter-squat position and place an exercise band around your ankles. Reach one leg at a time behind you to get a nice stretch for your glutes and legs. "This will help alleviate back pain," Stokes says. "What I hear a lot of as a trainer is, since Covid when Zoom calls really became a thing, there's been a real increase in low-back pain." You can also reach your legs out laterally to the side for a banded side kick. Doing these exercises without a band is also possible, but the band gives you more of a challenge by adding resistance. 3. Postural exercises After activating your glutes, Stokes says doing postural exercises is a good way to reset your posture after sitting for a long time. "On a Zoom call, you have more forward posture, maybe you're typing on your phone at the same time, or you're just in general kind of rounding your shoulders forward," she says. "So you want to do anything that will pull those shoulders back." Stokes suggests putting a resistance band around your wrists and holding your arms straight out in front of you parallel to the ground and even with your shoulders. Once you're in this position, squeeze your shoulders together and do tiny presses on the band in an outward motion. Be mindful of your posture during your video calls too, she says, especially your neck's position. "If your legs are crossed, uncross them," she says. "Do a figure-four stretch when you're seated to get constant movement in your body." 4. Inversions Tanja Ivanova | Moment | Getty Images

https://www.cnbc.com/id/40433867

SRE

Sempra Energy

Energy and Utilities—What Stock Pickers Are Buying Now

“But when things started to get better in the overall market, people looked for sector rotation to take advantage of better upside and more economically leveraged sectors became a source for funds, and that’s natural because utilities are traditionally defensive.” In the next month, Gordon said he expects investors to park some of their cash in the sector before putting on more risk in January. “So I wouldn’t be surprised to see some of the larger-cap names perform better into the end of the year,” he said. “But names we like as long-term investments are names that exhibit some relative growth.” Energy Outlook: Meanwhile, Edmonds said as the weather turns colder, both oil and natural gas will perform well and stocks will follow suit. “The wildcard is the economy,” said Edmonds. “That’s the biggest risk: some macro shift that shows another leg downward both domestically and globally. But absent that, I think energy stands to remain a strong performer.” In particular, Edmonds favors stocks in the exploration and productionspace. Recommendations: Gordon Likes: NV Energy Pinnacle West Sempra Energy Gordon Avoids: Duke Energy —"They’re trading at very high valuation," he said of the firm. "We don’t see much earnings growth there." Edmonds Likes: QEP Resources Carrizo Oil Nobel Energy Whiting Petroleum ______________________________ Scorecard—What They Said: Edmonds' Previous Appearance on CNBC (Jul. 28, 2010) Gordon's Previous Appearance on CNBC (Oct. 5, 2010) ______________________________ More Energy Market Analysis: ______________________________ CNBC Slideshows: ______________________________ CNBC Data Pages: ______________________________ ______________________________ Disclosures: Edmonds does not own shares of QEP, WLL or NBL, but owns shares of CRZO. Gordon has investment banking clients who own shares of DUK, PNW, SRE and PEG. And within the last 12 months, Morgan Stanley has received compensation for products and services other than investment banking from Duke Energy. Gordon does not own shares of NVE. ______________________________ Disclaimer

https://www.cnbc.com/2024/04/18/these-companies-reporting-next-week-historically-beat-earnings-estimates.html

NOW

ServiceNow

These companies slated to report next week have a history of beating earnings estimates, including one tech giant

First-quarter earnings season just kicked off, and several stocks have a track record of surprising investors to the upside. Just under 10% of companies in the S & P 500 have reported their earnings so far, and the period is already off to a good start. Nearly 76% of companies that have reported have beaten earnings expectations, while 59% have come in above analysts' expectations for revenue. A diverse group of companies reports results next week, on track to be the busiest one of the season. Almost 150 companies in the S & P 500 are due to report, including more than one-third of stocks in the Dow Jones Industrial Average . Technology dominate the field, but results will also come from industrials, defense, energy, transportation, telecommunications and pharmaceuticals. Alphabet , Microsoft , Meta Platforms and Tesla are just a few of the headliners slated to release financials. Earnings from Humana , Comcast , Chubb , Visa and Chipotle will give investors more insight on the health of U.S. consumers. A company's earnings results are, of course, integral to both its near- and long-term performance. Results that surprise to the upside often push shares higher, while stocks that miss estimates are in danger of a pullback. As a result, CNPC Pro screened stocks slated to report their earnings next week for those that have a history of beating analysts' expectations. The following stocks have all topped their earnings forecasts with at least a 75% success rate. They've also all averaged a subsequent post-earnings day gain of 2% or more, according to data from Bespoke Investment Group. Magnificent 7 cohort member Meta has topped earnings estimates 87% of the time. The Instagram parent is slated to next announce its quarterly earnings after Wednesday's stock market close. Traditionally, the company's stock has risen 2.3% on average within a day of its earnings announcement. Shares of Meta have soared 40% so far this year, through Wednesday, after almost tripling in 2023. Earlier this month, JPMorgan and Citi both reiterated Meta as a top stock pick, while Piper Sandler stood by an overweight rating on the stock. "Bigger picture, with the broader online advertising environment strengthening and Meta's multi-year product strategy continuing to come into focus, Meta remains our Top-Pick and we are raising our projections and PT to $590," Citi wrote. Another name on the list is ServiceNow , also slated to release quarterly earnings after Wednesday's closing bell. The workflow automation platform beats earnings expectations 89% of the time. Shares of ServiceNow have historically risen 3.3% after posting its earnings, and have gained more than 4% this year after soaring 82% in 2023. Cloud software provider Five9 is the most consistent earnings outperformer on the list, with a record of beating estimates 98% of the time. To date, Five9 has plunged 28% this year, but the company's shares have risen an average of 4.0% following earnings. Five9 is slated to report its earnings next Thursday. Despite its underperformance, Baird in March named the stock its top pick among communications software businesses. "FIVN remains our top [unified communications] idea, and we like the risk/reward at current levels," wrote analyst William Power. The analyst's $90 price target implies shares could rally 58% in the next year, based on Wednesday's close. — CNBC's Robert Hum and Fred Imbert contributed to this report.

https://www.cnbc.com/2022/01/26/cloud-software-stocks-get-boost-servicenow-and-qualtrics-q4-earnings.html

NOW

ServiceNow

Beaten-down cloud software stocks get boost as ServiceNow and Qualtrics top estimates

Maybe cloud investors just needed a little reassurance. Following a brutal stretch that's seen one cloud computing index tumble 38% from an all-time high in November, two key members of the group — ServiceNow and Qualtrics — delivered optimistic numbers on Wednesday, spurring an after-market rally in their share prices. ServiceNow, whose software automates back-office IT tasks and workflows, jumped 10% on better-than-expected first-quarter results and an upbeat outlook for the year. Qualtrics, a provider of software that helps companies communicate with customers and track their experience, climbed more than 9% after soaring past estimates for the fourth quarter and in beating expectations with its 2022 guidance. Tech stocks entered earnings season in a downward spiral, with the Nasdaq headed for its worst month since 2008. The index is still down 13% in January, but most of the companies that have reported so far have provided signs of optimism. "We are in a sustained demand environment here," ServiceNow CEO Bill McDermott said on the earnings call after his company reported 29% growth in the fourth quarter and predicted 26% growth in subscription revenue for the year. Microsoft and Intel beat on the top and bottom lines this week and exceeded estimates with their guidance, while IBM and Tesla also reported better-than-expected results. Among the most notable large-cap names, only Netflix has disappointed investors, as the company's prediction for subscriber growth came in far below estimates.

https://www.cnbc.com/2024/04/18/jim-cramers-top-10-things-to-watch-in-the-stock-market-thursday.html

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ServiceNow

Jim Cramer's top 10 things to watch in the stock market Thursday

My top 10 things to watch Thursday, April 18 The S & P 500 is, once again, trying to break its losing streak, looking higher going into the open. On four straight down sessions, the index was down 2% for the week, as of Wednesday's close. First quarter earnings season is ramping — and so far, the results have been mostly positive. Needham says cost cuts will lead to higher profits at Amazon . The analysts hike their earnings-per-share (EPS) full-year estimate. Club name Amazon reports its quarter on April 30. Micron Technology is about to get $6.1 billion in grants for the federal government's CHIPS Act. It's surprising people, which is odd because Micron is a largely U.S. builder and should be rewarded. Taiwan Semiconductor Manufacturing Company delivers a very strong quarter. It was initially viewed as positive but then it sold off. Was the EPS beat not enough? The Club's chipmakers are Nvidia and Broadcom . KeyBanc cuts CrowdStrike price target to $376 per share from $430. The analysts point to a survey that says demand may be softer. I do find this hard to believe. In cybersecurity, we own Palo Alto Networks . Piper Sandler raises Conocophillips price target to $157 per share from $145. The three most loved right now are Conoco, Chevron and Diamondback Energy for growth lovers. We like and own Coterra Energ y for the Club. Piper takes Chevron PT to $204 from $180. Two quarters ago, you couldn't give this stock away. Deutsche Bank downgrades Tesla to hold from buy on a thesis-changing pivot. The analysts say robotaxis are not the route to a higher stock price. They say their buy rating on the stock was based on a coming cheaper EV model. That's what the Chinese are doing. What a nightmare. Needham cuts Rivian Automotive price target to $13 per share from $18. The analysts say overall demand weaker and used sales not holding price either. However, they say there's good demand for used. Morgan Stanley double upgrades eBay rating to overweight from underweight (buy from sell) and hikes price target to $62 per share from $35. EBay is like PayPal , enjoying a renaissance. The analysts at Morgan Stanley also take Etsy to a sell-equivalent and cut PT to $55 from $64 on limited frequency growth. Citi hikes ServiceNow price target to $906 per share from $896. Larger deals and good beat and raise coming. Providing a positive second-half outlook. Bullpen name reports this coming Wednesday. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. My top 10 things to watch Thursday, April 18

https://www.cnbc.com/2020/12/08/servicenow-ceo-digital-transformation-is-opportunity-of-this-generation.html

NOW

ServiceNow

ServiceNow CEO says digital transformation is the 'opportunity of this generation'

As businesses adopted new digital capabilities to operate amid the coronavirus pandemic, ServiceNow reached a milestone among a key client base, CEO Bill McDermott said on CNBC Monday. In the third quarter, the cloud services provider signed its 1,000th customer contract valued above $1 million annually — that's double the number the company recorded a year ago. "We were probably about half of that [last year]," McDermott told "Mad Money" host Jim Cramer in an interview. "We've made quite a move into the C-suite." ServiceNow, whose digital workflows have been a hot commodity among entities scrambling to adjust to the digital world, landed a number of large deals in the third quarter, which ended Sept. 30. Some of those enterprise contracts include the NBA, WNBA and Dell , as well as deals with federal and state governments. ServiceNow reported its best quarter among federal agencies, including nine federal customers with more than $10 million of annualized contract value, which measures the expected revenue of each customer each year. The Department of Veterans Affairs in April gave ServiceNow the largest deal on the company's record, a five-year $96 million order to modernize the agency's IT infrastructure. The company also counts the U.S. Air Force and U.S. Army among its clients. "Today, digital transformation is the opportunity of this generation," McDermott said. Shares of ServiceNow rose 1.44% Monday to $533.25. The stock is up almost 89% this year.

https://www.cnbc.com/2020/07/30/servicenow-ceo-bill-mcdermott-did-big-deals-at-sap-like-qualtrics.html

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ServiceNow

ServiceNow CEO Bill McDermott was a big dealmaker at SAP, but he's taking a different approach today

The last time ServiceNow CEO Bill McDermott orchestrated a big acquisition was in late 2018, when he was running SAP and led the $8 billion purchase of Qualtrics. Some analysts and investors at the time questioned the steep price. McDermott says that skepticism has clearly been put to rest. SAP announced this week that it's spinning out Qualtrics through an IPO, taking advantage of the stock market's favorable view of high-growth software companies, particularly those that generate profit. Analysts at JMP said in a report after the announcement that Qualtrics has an enterprise value today, based on conservative growth estimates, of about $11.4 billion. "Any question on valuation has more than been answered," McDermott told CNBC in an interview late Wednesday. "It's a premium asset and always has been." SAP will still own the majority of Qualtrics and said in a press release that it will remain its "closest and most important co-innovation and go-to-market partner." McDermott's comments came after ServiceNow reported better-than-expected second-quarter results and raised its third-quarter forecast. The stock slipped after hours on Wednesday, however, as billings guidance came in below estimates.

https://www.cnbc.com/2021/06/10/servicenow-stock-conviction-list-goldman.html

NOW

ServiceNow

Goldman puts ServiceNow on its conviction buy list, sees 50% rally in the software stock

ServiceNow 's recent struggles should prove temporary as the company will soon resume its growth to become a major player in enterprise software, according to Goldman Sachs. The investment firm added the stock to its conviction buy list, with analyst Kash Rangan saying in a note to clients on Thursday that the pandemic delivered a temporary hit to ServiceNow's customer base that should lift. 2022 could be be a bounce back year for the company "given that net new business growth, which is a leading indicator for revenue growth, is accelerating with 1Q21 better than 4Q20 and 2Q21 tracking ahead of 1Q21," Goldman said. "If this continues through 2H21, ServiceNow may reaccelerate revenue growth in C22." The company is trading below its pre-pandemic multiple of enterprise value to sales, Goldman said, and the stock has fallen 17% since late April. The firm reiterated its price target of $695 per share, which is nearly 50% above where the stock closed on Wednesday. Looking further out, Goldman projects that ServiceNow could exceed $15 billion in subscription revenue in 2026. The company reported just under $1.3 billion in subscription revenue for its most recent quarter. "Average deal sizes are very large, highlighted by Customer Workflow deals at ~$267K and Creator Workflow deals at ~$225K. As well, we believe that dollar for dollar, NOW can complement Salesforce.com and Workday in how big they are in Customer Support and HR, respectively," the note said. -CNBC's Michael Bloom contributed to this report. Bill McDermott, CEO of ServiceNow. Adam Jeffery | CNBC

https://www.cnbc.com/2022/06/06/servicenow-ceo-current-economic-downturn-not-even-close-to-2008-crisis.html

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ServiceNow

ServiceNow CEO says current economic downturn 'is not even close' to 2008 crisis

ServiceNow Chief Executive Bill McDermott told CNBC's Jim Cramer on Monday that he doesn't expect the current economy to undergo a market downturn like the 2008 financial crisis. "This is not even close to 2008. In 2008, I was with a company where we lost a billion euros in pipeline in a day. That was a crisis. This is not a crisis," McDermott said in an interview on "Mad Money." "If anything, this is a crisis of opportunity. The digital transformation market is $11 trillion in the next three years, okay. If you're going to fight inflation, you're going to keep your employees inspired, no matter where they work from. … You're going to connect to your customers," he added. McDermott's comments come as the Federal Reserve plans to tighten its balance sheet and raise interest rates to control inflation, intensifying concerns on Wall Street that the actions could spark a recession and slow down an economy recovering from the height of the Covid pandemic. The cloud-based software company CEO also stated that companies that wish to make it through difficult economic conditions ahead need to invest in digital innovation now. McDermott noted that not a single firm in the top 30 companies in the S&P 500 in 1989 is on the same list today, as measured by market cap. "If you don't change, and you don't transform your businesses, and you don't hit the accelerator now when headlines are down, you might not be on any list in 30 years," he said. Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market. Disclaimer

https://www.cnbc.com/2024/04/09/these-stocks-have-the-strong-margins-and-pricing-power-to-withstand-a-reacceleration-in-inflation.html

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ServiceNow

These stocks have the strong margins and pricing power to withstand a reacceleration in inflation

Investors may want to pick up shares in companies that can withstand a possible inflation comeback. The second quarter is off to a rough start as investors have become increasingly wary about higher-for-longer interest rates and stickier inflation. The S & P 500 is down 1.5% so far this month, while the 30-stock Dow has lost nearly 3% and the Nasdaq has shed 1.1%. Prices of most commodities, from gold to crude oil, have also increased to new highs in recent weeks, adding to investors' worries. Investors' are therefore looking to Wednesday's consumer price index release — which gauges the average change over time in the prices people pay for goods and services — for further clues on the state of inflation. Economists surveyed by Dow Jones expect inflation to have increased 0.3% in March on a month-over-month basis. Wall Street will also use the report to assess how many times the Federal Reserve will cut interest rates. If the data points to easing price pressures, rate cut expectations will rise. Otherwise, investors will price rate reductions out of the market. Against this market backdrop, we used the CNBC Pro Stock Screener to search for stocks with the pricing power and cost controls to handle a potential inflation reacceleration. These names have also showed reliable earnings growth during the post-pandemic inflation spike. Additionally, they have low debt and strong balance sheets that should keep the company resilient if interest rates rise. Here's the criteria these stocks meet: They have among the highest gross margins in the S & P 500, at above 60%. Their annual earnings per share growth over the last three years is more than 15%. Their debt-to-equity ratio is less than 40%. Take a look at the list of companies below: At 143.2%, digital workflow company ServiceNow has the highest projected three-year earnings per share growth of the list and a fairly low debt-to-equity ratio of 19.5%. Shares have gained 10.1% this year, fueled by enthusiasm around its expanded generative AI services. Stifel analyst Brad Reback kept his buy rating ahead of ServiceNow's first-quarter earnings slated for April 24. "Looking forward, our checks pointed to better-than-expected 2Q deal pipelines," Reback wrote in an April 3 note. "Large enterprises who had historically been averse to 3rd party solutions and relied on home-grown ITSM/ITOM platforms, are beginning to make the shift to ServiceNow's product set given the reliability, sustainability, and breadth of solutions found within the platform." Arista Networks has zero debt and a gross margin of nearly 62%, making it a favored stock during times of high inflation. Shares of the computer networking company have jumped more than 23% this year, and its earnings are expected to grow 48.8% over the next three years, per the CNBC Pro Stock Screener tool. The consensus rating on the stock is a buy, per LSEG. However, the average price target implies upside of less than 2%. Goldman Sachs reiterated its buy rating on the stock in a March 22 note. The firm also raised its price target on Arista from $313 to $356 due to higher confidence in its consensus revised estimates for 2024/2025, citing Arista's continued growth in its AI-related products and growing capital expenditures from 'cloud titan' customers who could support the company's revenue guidance. Nvidia also made the list, even though the stock has seen a 6.2% pullback this quarter. The darling chipmaker has gross profit margin of 72.7% and high levels of earnings growth. Other stocks that made the cut are Cadence Design Systems , Intuitive Surgical and Old Dominion Freight Line .

https://www.cnbc.com/2019/10/23/servicenow-shares-dramatically-cut-after-hours-losses-at-the-open.html

NOW

ServiceNow

ServiceNow shares dramatically cut losses after plunging on CEO change

Shares of ServiceNow dropped 5% at Wednesday's open on Wall Street. While still a sizable decline, the stock had been down as much as 15% in after-hours trading Tuesday after the enterprise software company said its CEO, John Donahoe, was leaving to become chief executive of Nike . Donahoe, already a Nike board member, will succeed longtime Nike CEO Mark Parker. Nike said late Tuesday that Parker will step down, effective in January of next year. Donahoe, chairman of PayPal, was formerly CEO of eBay . For its part, California-based ServiceNow announced that Bill McDermott, who recently departed as leader of German software firm SAP , will take over for Donahoe as its CEO. "We have a fired up team," McDermott said on CNBC's "Squawk on the Street," before the opening bell Wednesday. "I'm super excited about our leadership team. The board of directors here is so uplifting." McDermott, 58, spent 17 years at SAP and became co-CEO in 2010. He became sole CEO in 2014. Asked why he wanted to take a CEO job so soon after SAP, McDermott said, "I'm not the guy who wants to make a tee time," stressing he would rather be helping ServiceNow build its business than spending his time playing golf. One of the challenges McDermott faces right away at ServiceNow is filling the chief financial officer post, vacated by Mike Scarpelli in August. McDermott said he's not worried about finding a top-notch CFO, saying he's been getting tons of emails. "We have our pick of the litter," he said. There are "three serious candidates" being considered for the job, he added. In addition to announcing the CEO change, ServiceNow late Tuesday also disclosed preliminary third-quarter revenue of $885.8 million, slightly more than analysts had expected. ServiceNow is set to release full Q3 results after the closing bell on Wednesday.

https://www.cnbc.com/2019/10/22/servicenow-names-former-sap-chief-bill-mcdermott-as-ceo-stock-falls.html

NOW

ServiceNow

ServiceNow stock drops as CEO leaves for Nike, replaced by former SAP leader McDermott

Shares of enterprise software company ServiceNow fell as much as 15% after hours on Tuesday after the company said Bill McDermott, who recently stepped down as CEO of SAP , is joining ServiceNow later this year to become its new CEO. ServiceNow stock is now down about 5%. John Donahoe, the current CEO, is leaving ServiceNow to replace Mark Parker as CEO of Nike , according to a statement. Donahoe, who is set to start as Nike CEO in January 2020, will stay on as CEO through the transition, and he will keep his seat on ServiceNow's board until his term ends in June 2020. Donahoe replaced Frank Slootman as ServiceNow CEO in 2017. Donahoe, the chairman of PayPal , was previously CEO of eBay . "A year from now, John's not going to be around," Slootman said on CNBC's "Squawk on the Street" at the time. ServiceNow shares have risen 161% during Donahoe's tenure as its CEO. McDermott, 58, spent 17 years at SAP and became co-CEO in 2010. He became sole CEO in 2014. "I am excited, and I will do something at some point, and that will be discussed at a future date and on a future occasion," McDermott told reporters on a conference call on October 10, when SAP announced his departure. Also on Tuesday ServiceNow provided preliminary third-quarter results and full-year guidance. The company reported $885.8 million in revenue for the quarter. Analysts polled by Refinitiv had been looking for $885.0 million. ServiceNow said it expects $3.240 billion to $3.245 billion in subscription revenue for all of 2019. The midpoint of that range is below the $3.253 billion FactSet consensus estimate. ServiceNow shares are up 28% since the beginning of the year. WATCH: SAP's Bill McDermott explains his decision to step down as CEO

https://www.cnbc.com/id/100135231

SHW

Sherwin-Williams

RESEARCH ALERT-Barclays raises Sherwin Williams price target

Oct 4 (Reuters) - Sherwin-Williams Co : * Barclays raises Sherwin Williams Co price target to $171 from $135; rating equal weight For a summary of rating and price target changes on U.S. companies: Reuters Eikon users, click on Reuters 3000Xtra users, double-click Reuters Station users, click .1568 For a summary of rating and price target changes on Canadian companies: Reuters Eikon users, click on Reuters 3000Xtra users, double-click Reuters Station users, click .4899 ((Bangalore Equities Newsdesk +91 80 4135 5800; within U.S. +1 646 223 8780))

https://www.cnbc.com/2024/01/03/top-stocks-to-watch-on-wednesday.html

SHW

Sherwin-Williams

Here are Wednesday's biggest analyst calls: Nvidia, Netflix, Amazon, Apple, Tesla, Verizon, Eli Lilly & more

Here are Wednesday's biggest calls on Wall Street: Goldman Sachs reiterates Tesla as neutral Goldman raised its price target on the stock to $255 per share from $235 and said it's sticking with its equal weight rating. "We are Neutral rated on the stock, with our positive view of Tesla' s long-term growth potential and position in the market offset by what we believe will be additional pricing reductions and full valuation." Goldman Sachs upgrades Ameriprise Financial to buy from neutral Goldman said it likes the company's cash revenue outlook. " AMP : Durable cash revenue outlook, margins and buybacks support EPS upside; upgrade to Buy." Goldman Sachs downgrades Charles Schwab to neutral from buy Goldman said the Schwab bull case is moving further away. "SCHW: Lower rates push EPS recovery bull case further out; downgrade to Neutral." JPMorgan downgrades Prudential to neutral from overweight JPMorgan said it sees "less buyback accretion" in 2024 for Prudential. "healthy equity market, offset by lower interest rates, less buyback accretion, and charge in 4Q23." Morgan Stanley downgrades Keurig Dr Pepper to equal weight from overweight Morgan Stanley said "EPS visibility is already priced in." "Part one of our early-July KDP upgrade has played out with the market now viewing EPS visibility as solid at KDP in our minds, or perhaps at least much better than pronounced fears over a FY23 EPS cut back in early July." Baird initiates Jazz Pharmaceuticals as outperform Baird said it likes the pharmaceutical company's pipeline. "We're initiating coverage of JAZZ with an Outperform rating and $160 price target." Goldman Sachs downgrades Magna to neutral from buy Goldman said it sees "limited" EPS improvement for the auto parts manufacturer. "We downgrade Magna (MGA) shares to Neutral from Buy as we believe the company's relatively slower content per vehicle growth compared to our broader tier 1 coverage will limit EPS/FCF improvement especially as auto production growth moderates." Goldman Sachs reiterates Apple as buy Goldman said it's standing by its buy rating on the stock. " Apple (AAPL, Buy) should also benefit from a recovery in industry PC demand, as well as a track record of share gains." KeyBanc upgrades Verizon to overweight from sector weight Key said it's bullish on Verizon in 2024. "Our view is based off of: 1) Wireless industry competitive intensity being low, which makes us want more Wireless exposure, and VZ should show better postpaid phone net add performance; 2) VZ's Broadband subscriber growth is far outpacing T's." KBW downgrading SoFi to underperform from market perform KBW downgraded the stock mainly on valuation. "We are moving our rating on SOFI to Underperform (from MP) due to a combination of recent outperformance but also a re-underwriting of our model, which slightly reduced estimates, leaving us materially below consensus." Roth MKM names Roblox a top pick Roth said the stock is a top pick in 2024. "In our view, 2024 marks the start of a three-year period where Roblox can achieve a ~20% bookings CAGR along with 100bps-300bps of annual adjusted EBITDA margin expansion." Bank of America reiterates Amazon as buy Bank of America said it sees "margin upside" for Amazon in 2024. "2024 should be a solid year for Amazon advertising." Piper Sandler upgrades Discover to overweight from neutral Piper said it sees tailwinds for the stock in 2024. "We are upgrading DFS to Overweight from Neutral while naming DFS as our top pick for 2024." Baird downgrades Sherwin-Williams to neutral from outperform Baird said in its downgrade of the paint company that the thesis has played out. "However, we believe that SHW faces a challenging macroeconomic backdrop in the near term, characterized by higher for longer interest rates, a tightening housing supply, and higher oil prices/wage inflation." Wolfe names JPMorgan a top pick Wolfe said the bank has "asset sensitive 'quality' on sale." "Our Top Picks screen best across multiple scenarios in terms of risk-reward, with a combination of asset sensitive 'quality' on sale ( JPM , ARES, LPLA) and undervalued cyclical names." Wolfe upgrades Citi to outperform from peer perform Wolfe said the bank has an "attractive risk/reward." "C bull case does not require meeting revenue growth targets — we see compelling risk-reward from self-help." Mizuho names First Solar a top pick Mizuho said it sees earnings resilience from the solar company in 2024. "We prefer First Solar as earnings should be resilient with locked in volumes and ASPs, and they are sold out through 2026 with mostly take-or-pay contracts." DA Davidson initiates Nvidia as neutral DA said Nvidia could be "vulnerable" to AI hype. "While we continue to believe that generative AI is the most important transformative technology since the Internet, we do not expect the same level of investment we saw in 2023 continuing beyond 2024 and initiate coverage at a NEUTRAL rating." Goldman Sachs initiates Li Auto as buy Goldman initiated the China EV company with a buy and says it likes Li's "competitive positioning." "Expansion into BEV [battery electric vehicle] drives another leg of growth; initiate at Buy." UBS upgrades Rockwell Automation to buy from neutral UBS said it sees "reshoring momentum" for the stock. "We upgrade ROK to Buy as shares of the US Automation leader have de-rated to a 5yr low into the early innings of US Reshoring momentum, a multi-decade opportunity that should accelerate ROK's long-term growth algorithm." Citi opens a positive catalyst watch on United Airlines Citi said the stock has "momentum" in 2024. " United's 2024 momentum seems underappreciated by the market. The carrier's strong revenue momentum on the Trans-Pacific- and on mainline domestic corridors, along with seat mile cost dilution associated with re-fleeting, seem underappreciated by the market." Jefferies upgrades GSK to buy from hold Jefferies said it sees an attractive risk/reward for the biopharma company. "Novartis is still top-pick, then GSK which we upgrade to Buy on near-term risk-reward, and Sanofi's robust growth remains underappreciated." UBS names Netflix and Disney top ideas UBS said it's bullish on both stocks in 2024. "We believe Netflix is the main beneficiary of these trends while we see a positive risk/reward for Disney given its asset value, potential strategic developments and accelerating OI/EPS growth." Needham initiates Utz as buy Needham said the snack company is firing on all cylinders. "We believe Utz has the right playbook and new team in place to transition from a family-run regional company to a national competitor in the salty snack category." Mizuho downgrades Exxon to hold from buy Mizuho said in its downgrade of Exxon that it's concerned about a "weakening" macro. "On the downside, weakening macro outlook will impact its Downstream operations more than IOC [integrated oil companies] peers and could be a headwind." Barclays upgrades Yum Brands to overweight from equal weight and downgrades Wendy's to equal weight from overweight Barclays made several ratings changes in its restaurant coverage and said it likes stocks that have a "larger, global, more diversified portfolio." "And in that scenario, we are making two rating changes within quick service to be best positioned, shifting preference to a larger, global, more diversified portfolio. Specifically, we are upgrading YUM to OW and downgrading WEN to EW. Barclays initiates Teladoc as overweight Barclays said in its initiation of the telehealth company that shares are attractively valued. "We see an opportunity in TDOC given its near-trough valuation at a discount to even services peers a newfound focus on profitability, balance sheet flexibility, and an embedded platform that lends itself to cross-sales." Wells Fargo names Micron as a top pick Wells said Micron is its new top pick for 2024. "We're positive on the fundamental semi setup in 2024/2025; cyclical recovery + LT [long term] secular thesis in memory drives MU to top pick & prefer NVDA vs. AMD at current levels/sentiment." Bank of America downgrades Bristol-Myers to neutral from buy Bank of America said it needs more clarity on execution for Bristol-Myers. "Our Neutral rating is driven by the uncertainty on long-term growth profile of the company given LOE [loss of exclusivity] headwinds despite recent acquisitions." BTIG initiates VinFast as buy BTIG said the EV company is well-positioned for expansion into North America. " VinFast is a Vietnam-based passenger electric vehicle (EV) OEM looking to expand into North America (NAM) with longer-term expansion plans into Europe and Asia." Piper Sandler names Ulta a top pick Piper said the stock is well positioned for a tough macro in 2024. " ULTA is navigating well through a challenging consumer environment and proving to be one of the most defensive names in beauty, delivering consistent positive comp sales and margins several points ahead of pre-Covid." Bank of America names Eli Lilly a top pick Bank of America said the pharmaceutical stock is a top pick in 2024. "LLY shares had another strong year, finishing up 59% in 2023 largely based on broad investor interest surrounding obesity / diabetes drugs. Given the outperformance as well as the multiple investors are not surprisingly concerned about how sustainable current trends are."

https://www.cnbc.com/id/35075966

SHW

Sherwin-Williams

Traders Bullish Ahead of Sherwin-Williams Earnings

Sherwin-Williams reports earnings before the bell today, and one trader is looking for a big move. OptionMonster's tracking programs detected the purchase of about 1,000 February 60 calls for $1.40 and 1,000 February 60 puts for $2.50, resulting in a net cost of $3.90. The activity came amid a busy session for the paint maker, during which options volume surged to 10 times the average level. Options Tips from Jon Najarian Read The CNBC Stock Blog Options Tips from Pete Najarian Sherwin-Williams rose 1.59 percent to $58.92 yesterday. The stock gapped lower after its last earnings report on Oct. 20, when management forecast lower-than-expected fourth-quarter results. It then rallied back above $60 but has lost most of those gains so far this month. The options trade, known as a "strangle," allows the investor to profit from a big move in the stock. It will make money if Sherwin-Williams rallies above $63.90 or falls below $56.10 by expiration. The strategy also benefits from the options being relatively inexpensive because of the stock's low implied volatility, which is now about 26 percent, down from 32 percent in early October. Other investors purchased about 1,100 February 55 puts for $0.55 against open interest of 162 contracts, likely to hedge against a sharp drop following earnings. ___________________________ Sherwin-Williams Competes With: PPG Industries ___________________________ Options Trading School: ___________________________ ___________________________ David Russell is a reporter and writer for OptionMonster. ___________________________ Disclaimer

https://www.cnbc.com/2023/12/28/strategist-says-bonds-are-more-attractive-than-stocks-right-now.html

SHW

Sherwin-Williams

Strategist says bonds are 'more attractive' than stocks right now — but shares his picks for both

Stocks have rallied, while bonds have had a mixed 2023. Markets are now betting on interest rate cuts , but Robert Almeida, global investment strategist at MFS Investment Management, prefers bonds to stocks. "I believe bonds are more attractive than equities, just because of the risk adjusted return profile – bonds are de-risked whereas the return on equities can be negative, and the volume can be quite high," he told CNBC Pro on Dec. 1. Noting that higher profits have boosted stock prices, Almeida, who is also a portfolio manager, said that many investors are of the view that equity valuations "look stretched, but are not extreme," when compared with fixed income. His response is to look at both asset classes through a "long-term lens on a cyclically adjusted price-to-earnings ratio." "Even if you normalize profits or adjust them to consider scenarios where valuations are really high – and you compare what you get it cash for both fixed income and equities – you will see that stocks are quite unattractive right now," he added. Almeida oversees MFS' Diversified Income Fund, which aims to find "total return with an emphasis on current income" as well as capital appreciation. The bulk of the fund (70.3%) is invested in bonds: the 5-Year U.S. Treasury Futures, 10-Year U.S. Treasury Futures and United States Treasury Bond were in its top 10 holdings as at end-September. The rest of its portfolio is invested in stocks (30.4%) as well as cash and its equivalents (2.1%). 'Most attractive' bonds When asked what bonds investors should invest in, Almeida responded that the "most attractive" are Treasurys and mortgages. "Most government bonds are pretty attractive with the exception of Switzerland and Japan because the yields are too low. But, if I'm based elsewhere like Britain or Europe – I would get bonds because they have a pretty attractive trade off to equities." Almeida also sees opportunities in triple A corporate bonds. "In the portfolio I run, I'm overweight fixed income – the bulk of that overweight is U.S. triple A government securities. And then I'm slightly overweight investment grade corporates," he said, adding that he's concerned that spreads of corporate bonds are too tight and will widen as fundamentals soften. Portfolio mix Although Almeida is more bullish on bonds than stocks, he stressed that an investor's portfolio mix should be dependent on risk appetite and life stage. Whether that translates to 60% in stocks and 40% in bonds, or 50% in equities and 50% in bonds, is not as material as being "as defensively positioned as possible," he said. Almeida suggested that investors increase their current allocation to bonds by 5%. "That's what I did with my portfolio - the neutral mix is 65% in bonds and 35% in equities. I just tweaked the allocation to both by 5%," he said. As for stocks, Almeida sees potential in "businesses with a product or service that people want or need." "These businesses have pricing power and barriers to entry," naming railroads and suppliers of household items such as paint, lighting and fixtures, as themes on his radar. Companies he likes include Sherwin-Williams , Masco , Sensata and Amphenol .

https://www.cnbc.com/id/41153705

SHW

Sherwin-Williams

Stocks to Watch: Sherwin Williams, McDonald's and More ...

Stocks mover lower Wednesday amid mixed earnings results in the financial sector and despite surprisingly strong results out of tech giants IBM and Apple. Goldman Sachs and Wells Fargo. The Dow Jones Industrial Averageedged lower, after closing at a new 2 1/2-year high on Tuesday. IBM, Verizon and Johnson & Johnson rose, while American Express and Bank of America fell. So which individual stocks are worth watching today? Here are six that are on the move: Sherwin Williams Co. The building material and fixure manufacturer was trading at all-time highs this Wednesday morning. ---------- Teekay Tankers Ltd. The oil equipment and service company was downgraded to underperform from buy at Bank of America Merrill Lynch. ----------- McDonald's Corporation The restuarant franchise was added to the US Focus list at Credit Suisse. Their rating was outperform, price target is $87. ----------- Beazer Homes The home construction company was downgraded to neutral from buy at UBS. The firm cited valuation as the reason for the downgrade. ----------- Dollar Tree Stores Inc The discount store was upgraded to overweight from equal-weight at Morgan Stanley with the price target at $63 per share. ----------- Legg Mason Inc The investment service company was downgraded to hold from buy at Stifel Nicolaus. ______________________________ Get the latest stock picks on the CNBC Stock Blog, and see what analysts and others are watching before the bell each day at Analyst Watch.

https://www.cnbc.com/id/36715089

SHW

Sherwin-Williams

Web Extra Pops & Drops: Sherwin-Williams, Hershey...

______________________________________________________ Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com. Trader disclosure: On Apr 22, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (INTC), (GS), (C), (AGU), (MSFT), (NUE), (BTU); Finerman's Firm Is Short (IWM), (MDY), (IJR); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Calls; Finerman Owns (BAC) Preferred; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (JPM); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (PLCM); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman’s Firm Owns (TJX); Finerman's Firm Owns (KFT), (WMT), (IBM); Terranova Owns (AXP), (TER), (SWN), (XCO), (HES); Terranova Owns (C) May Calls; Terranova Is Short Gold; Terranova Is Short (BRE); Karabell Owns (ADSK); Grasso Owns (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (NEM), (PRST), (PFE), (BA), (T), (CSCO); Jon Najarian Owns (SYNA); Jon Najarian Owns (BAC) Preferred; Jon Najarian Owns (C) Preferred; Jon Najarian Owns (CME); Jon Najarian Owns A Seat On CME; Jon Najarian Owns (GS), Is Short (GS) Call; Jon Najarian Owns (JPM) Preferred; Jon Najarian Owns (LPX) Call Spreads; Jon Najarian Owns (MS), Is Short (MS) Calls; Jon Najarian Owns (MSFT) Puts; Jon Najarian Owns (QCOM) Puts; Kaminsky Owns (EXPD); Iuorio Owns (C), (GOOG), (GLD), (FXC); Iuorio Is Long Volatility In S&P Futures For Joe Terranova Terranova Works For (VRTS) Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd. Virtus Investment Partners Owns More Than 1% Of (XLU) Virtus Investment Partners Owns More Than 1% Of (IGE) Virtus Investment Partners Owns More Than 1% Of (XLY) Virtus Investment Partners Owns More Than 1% Of (DBV) Virtus Investment Partners Owns More Than 1% Of (XLP) Virtus Investment Partners Owns More Than 1% Of (XLB) Virtus Investment Partners Owns More Than 1% Of (XLV) Virtus Investment Partners Owns More Than 1% Of (XLI) For Steve Grasso Stuart Frankel And Its Partners Own (CUBA) Stuart Frankel And Its Partners Own (GERN) Stuart Frankel And Its Partners Own (HSPO) Stuart Frankel And Its Partners Own (MERC) Stuart Frankel And Its Partners Own (NWS.A) Stuart Frankel And Its Partners Own (NXST) Stuart Frankel And Its Partners Own (NYX) Stuart Frankel And Its Partners Own (PDE) Stuart Frankel And Its Partners Own (PFE) Stuart Frankel And Its Partners Own (PRST) Stuart Frankel And Its Partners Own (RDC) Stuart Frankel And Its Partners Own (TLM) Stuart Frankel And Its Partners Own (XRX) Stuart Frankel And Its Partners Own (SDS) Stuart Frankel And Its Partners Are Short (QQQQ) Stuart Frankel And Its Partners Are Short (CL) Stuart Frankel And Its Partners Are Short (AAPL) Dennis Gartman Funds Managed By Dennis Gartman Are Short Crude Oil Funds Managed By Dennis Gartman Are Short Euro, Sterling, Yen Funds Managed By Dennis Gartman Are Long Gold For Hilary Kramer Kramer Is A Client Of Goldman Sachs CNBC.com with wires

https://www.cnbc.com/id/40677910

SHW

Sherwin-Williams

Stocks to Watch: Tiffany, Sherwin Williams and More ...

Stocks gained after a handful of positive economic reports, including a slightly better-than-expected gain in industrial production, and a slightly better-than-expected report on consumer price inflation. The Dow Jones Industrial Average rose more than 25 points after reaching a two-year highon Tuesday. So which individual stocks are worth watching today? Here are six that are on the move: Walmart The retail chain's stock was downgraded to sell from hold at Wall Street Strategies, and the price target was cut to $50 from $52.. ---------- BB&T Corp. The financial holding company was downgraded to neutral from buy at Janney Capital. ----------- Sherwin Williams The paint manufacturer and retailer was trading at all-time high levels, with share up nearly 2 percent. ----------- Emergency Medical Services The emergency medical services company was downgraded to hold from buy at Deutsche Bank. ----------- Ingersoll-Rand The refrigeration company's stock was trading at levels not seen since May 2008. ----------- Tiffany The luxury retailer was initiated outperform at Credit Suisse with a $77 price target. ______________________________ Get the latest stock picks on the CNBC Stock Blog, and see what analysts and others are watching before the bell each day at Analyst Watch.

https://www.cnbc.com/id/100047463

SHW

Sherwin-Williams

*Sherwin-Williams 3Q net income up but shares fall

N/A

https://www.cnbc.com/2023/11/20/analysts-are-watching-these-stocks-on-monday.html

SHW

Sherwin-Williams

Here are Monday's biggest analyst calls: Nvidia, Apple, Amazon, Boeing, Tesla, Dell, Microsoft & more

Here are Monday's biggest calls on Wall Street: Wolfe downgrades ChargePoint to peer perform from outperform Wolfe said it sees too much uncertainty for ChargePoint. "We're resetting our revenue and gross margin expectations as we see significant uncertainty in the medium-term; Downgrading to Peer Perform from Outperform." Jefferies upgrades Six Flags to buy from hold Jefferies said it's bullish on the company's merger with Cedar Fair. "We upgrade SIX to Buy from Hold as the merger of FUN and SIX materially increases value for SIX holders." Raymond James reiterates Nvidia as strong buy Raymond James said it's bullish heading into Nvidia earnings on Tuesday. "We expect another strong quarter from NVDA and believe that a 5-10% revenue beat (and raise) is likely despite mixed 3Q Cloud capex trends and recent China export controls." Stifel initiates Mach Natural Resources as buy Stifel said it's bullish on the oil and gas company. 'In our view, MNR offers a highly differentiated investment proposition as investors are paid a peer-leading dividend yield while allowing management time to execute its roll-up and return of capital strategy in arguably the best basin in the Lower 48 to pursue that strategy." Wells Fargo initiates Arm as overweight Wells said it's bullish on the semiconductor stock. "We initiate ARM with an OW rating. Arm has been the leading innovator in RISC-based compute since its founding in 1990 as a JV involving Acorn & Apple, and we believe it can continue the momentum well into the future by taking compute share." Bernstein reiterates Tesla as underperform Bernstein said it's standing by its underperform rating on Tesla as EV growth is slowing. "EV growth appears to be slowing, and some investors have asked whether wealthy, tech savvy early adopters have become increasingly saturated, with mass market consumers - 'average' Americans - not yet ready to pick up the slack/ purchase an EV." JPMorgan reiterates Apple as overweight JPMorgan said in iPhone lead times are moderating for Apple. "In Week 10 of our Product Availability Tracker, delivery lead times have moderated for the eighth consecutive week, and are now tracking on average to 2 days across the 15 Series, a decline of ~2 days in the last week, which is roughly in line with the magnitude of decline in the prior week." BTIG initiates Global Payments as buy BTIG said it sees an attractive entry point for the payments company. " GPN's global payments infrastructure enables more than 66 billion transactions per year, services ~4 million merchant locations, and we believe the stock presents investors with an attractive entry point trading at 10x FY24E adjusted EPS." Morgan Stanley downgrades Chegg to underweight from equal weight Morgan Stanley said it sees a tough setup for the education company. "LT, (long term) challenges from GenAI competition create a smaller opportunity for Chegg, likely leading to negative consensus estimate revisions in 2024 & 2025." Deutsche Bank upgrades Boeing to buy from hold Deutsche said the "revision outlook inflects" for the aerospace giant. "We are upgrading Boeing to Buy (from Hold) and increasing our target price to $270 Our updated target price offers 30% upside. Our upgrade rationale is simple: aircraft deliveries are accelerating, and we think there's a credible case to be made that this improved performance can be sustained." Wells Fargo initiates ZipRecruiter as overweight Wells said in its initiation of the jobs and employers website that it's a "well-positioned in a large, fragmented space." "A differentiated AI-powered service that continuously improves to deliver better outcomes to both employers and job seekers gives ZIP a competitive advantage in a $300B+ market that is shifting online." JPMorgan upgrades Dutch Bros to overweight from neutral JPMorgan said the coffee chain has "strong available liquidity" to continue to grow. " Dutch Bros has seen significant changes its capital structure and shareholder base in the past few months." Wells Fargo downgrades Spectrum Brands to equal weight from overweight Wells said in its downgrade of the home essentials company that it's less convicted about fundamentals. " SPB is cautious on 1H, signalling retailers intend to manage inventory tightly." Evercore ISI adds a tactical outperform on Hewlett Packard Evercore said the company is well positioned heading into earnings on Tuesday. "We think HPQ is well-positioned to report upside to current street models for the Oct-qtr driven by PCs. HPQ will report its Oct-qtr EPS on Tuesday, November 21st after market close." JPMorgan reiterates Amazon as a top idea JPMorgan said it's bullish on Amazon heading into the holiday season. " Amazon maintains a leading 44.6% share of US e-comm & enters the holiday season with strong momentum from early holiday promotions, increased same- day/1-day delivery (SD1D), regionalized US fulfillment infrastructure, record holiday hiring (AMZN an outlier), wide selection, & competitive prices." Goldman Sachs initiate Krystal Biotech as buy Goldman said it sees a "blockbuster" opportunity for the biotech company. "We initiate coverage on Krystal Biotech (KRYS) with a Buy rating and 12-month price target of $160." Bank of America upgrades Penn to buy from neutral Bank of America said it's bullish on Penn's partnership with ESPN. "We are upgrading PENN Entertainment from Neutral to Buy. Why now? We think ESPN Bet creates an asymmetric risk-reward, with 1) initial download and app activity much stronger than anticipated, 2) initial offers showing promotional discipline, and 3) stable Q3 earnings (see report) being better than expected for PENN's core gaming business." JPMorgan downgrades Krispy Kreme to neutral from overweight JPMorgan downgraded the stock mainly on valuation. " Krispy Kreme stock has continued its broad pattern of stock volatility, being down 3% since 3Q23 earnings (and down 7% day of) but still up ~26% YTD vs up 18% for SPX but down 11% y/y vs up ~14% for the SPX, respectively." Citi initiates Equifax as buy Citi said in its initiation of the credit company that it's underappreciated. "We initiate on Equifax with a Buy. In our view, consensus underappreciates the likely impact on Equifax's adjusted EBITDA arising from a rebound in the US mortgage market, which is running near lows seen in the Great Financial Crisis." UBS downgrades Energizer to neutral from buy UBS said in its downgrade of the stock that it sees an unattractive risk/reward. "We are downgrading shares of ENR to Neutral from Buy. Even with shares trading off 10% over the recent days, we believe the risk/reward is no longer attractive as current valuation remains above recent history." Stifel initiates Kosmos Energy as buy Stifel said in its initiation of the energy company that it has strong cash flow. "We are initiating coverage of Kosmos Energy with a Buy rating and $10/sh price target. Kosmos Energy is a leading E & P with an enviable portfolio that is about to deliver record levels of production and cash flows." Bank of America upgrades Vale to buy from neutral Bank of America upgraded the metals and mining company due higher iron ore prices. "Restocking coupled with seasonally weaker iron ore output from Brazil and Australia should support a tighter 1Q, then we see prices gradually falling to $100/t by 4Q24. This boosts our 2024 iron ore avg to $125/t and backs our upgrades of Vale, CSN and USIM to Buy – the latter two out-of-consensus. HSBC initiates Caterpillar as hold HSBC said in its initiation of the Caterpillar that it sees "mounting headwinds." "The world's leader in construction machinery …but we see profits falling in 2024e as infrastructure-related bills will take time to play out and slowdown signs emerge." BMO names Sherwin-Williams a top pick BMO said the paint company has "reasonable upside." "We are raising SHW to one of our "Top Picks" as we believe our above-consensus estimates (which we tweaked up modestly just on FX today) have reasonable upside to them as we look to 2024/25, particularly on the GM line." Wedbush downgrades KB Home to neutral from outperform Wedbush downgraded the stock mainly on valuation. "We are downgrading KBH to NEUTRAL from OUTPERFORM. The shares are within 5% of our unchanged price target, and we do not see an evolving catalyst to increase the PT." Melius initiates Dell as buy Melius Research initiated Dell with a buy and said it's an "inexpensive" way to play AI. "Inexpensive AI Play Heading into a Cycle – Initiate with a Buy Rating." Northcoast downgrades Wingstop to neutral from buy Northcoast downgraded the stock mainly on valuation. "But share price has finally caught up in our opinion. Trading at $133 per share at the beginning of the year, shares are now priced just below our $235 price target. Consistently strong top and bottom-line performance convinced investors that Wingstop's growth strategy would continue to drive compelling operating results." Oppenheimer reiterates Microsoft as outperform Oppenheimer said Microsoft's hiring of OpenAI's Sam Altman is a "major" win . "While we don't think this story is over, former OpenAI CEO Sam Altman and key employees are Microsoft employees for now, a major MSFT win."

https://www.cnbc.com/2023/07/25/cramers-sharing-terminology-to-help-make-sense-of-earnings-season.html

SHW

Sherwin-Williams

Cramer shares insights to help make sense of this earnings season

CNBC's Jim Cramer knows that executives rarely sound the alarm when something is wrong at their company. So on Tuesday, he drew back the curtain to try to explain what earnings reports can mean for stocks. Cramer broke down the companies he's watching into categories: continually good quarter (or continued excellence), first good quarter, last bad quarter, first bad quarter and confusing quarter. "I know it seems cumbersome, but that's truly the behind-the-scenes nomenclature that fund managers use," Cramer said. "You just have to figure out what you got your hands on before you do your buying or selling." Cramer first listed companies that are experiencing "continually good quarters," including homebuilder PulteGroup and paint maker Sherwin-Williams . The former, he said, is experiencing success despite Federal Reserve tightening, while Sherwin-Williams is rallying because of a strong demand for paint and a continued decline in raw costs. He also put General Electric and Google parent Alphabet in this category. Next, Cramer moved on to "first good quarter," highlighting NXP Semiconductors , which he said "had been having a tougher time of it," but reported a better-than-expected quarter on Monday. Despite its multibillion-dollar "forever chemicals" litigation, the company raised its full-year expectations, Cramer said. He also mentioned health-care and pharmaceutical company Danaher , which is owned by the CNBC Investing Club Charitable Trust. Cramer said he thinks the company is having its "last bad quarter," which could present a buying opportunity. "If you want the most bang for your buck — I mean, but there's also the most risk — you should try to anticipate the last bad quarter," that means you have to get in before management says business has bottomed, Cramer said. Cramer pointed to aerospace giant RTX , formerly known as Raytheon Technologies, as a company likely experiencing a "first bad quarter," plagued by an engine recall. But Cramer pointed out that the company still has a "mammoth order book" and solid organic growth, so he said he thinks it's possible this might be an outlier poor quarter. Finally, Cramer discussed companies with "confusing quarters" like GE HealthCare , which he suggested the market might be wrong about because of its contributions to Alzheimer's treatment.

https://www.cnbc.com/2023/11/02/rashida-tlaib-cori-bush-may-see-competition-from-reid-hoffman-pac.html

SPG

Simon Property Group

Reid Hoffman-backed PAC may fund primary campaign against progressives Rashida Tlaib, Cori Bush

Reid Hoffman, partner at Greylock; co-founder of LinkedIn and co-founder of Infection AI, speaks during the Axios BFD event in New York City, U.S., October 12, 2023. A political action committee funded largely by LinkedIn co-founder Reid Hoffman may be on the brink of launching a primary campaign to oust Reps. Rashida Tlaib, D-Mich, and Cori Bush, D-Mo, according to the billionaire's longtime political advisor, Dmitri Mehlhorn. Mehlhorn told CNBC that he recently approached the heads of the Mainstream Democrats PAC about the idea of backing a primary effort against the two progressive House lawmakers. Tlaib and Bush are part of the so-called "Squad" that also includes progressive New York Democratic Reps. Alexandria Ocasio-Cortez and Jamaal Bowman. "I have been asking them [Mainstream Democrats PAC] if there is any possibility of ousting the most extreme members of Congress, and I have been asking about Cori Bush and Rashida Tlaib," Mehlhorn said on Wednesday. Mehlhorn pointed to the two House lawmakers' critical stance on Israel's military campaign in Gaza following Hamas' Oct. 7 attack as the reason they could see a primary effort from the PAC. Mehlhorn said the conversations have been ongoing over the past month, and based on those communications, he feels hopeful that the PAC will move against Bush and Tlaib. "I am hopeful that they will come back to me with good news. I would be eager to raise support for that effort," Mehlhorn explained. He declined to comment further and would not specify who he spoke with from the PAC. If the Mainstream Democrats PAC run primary candidates against either Tlaib or Bush, it would represent a well-financed effort by some of the wealthiest donors aligned with the Democratic Party to potentially take down two progressive lawmakers. As a super PAC, Mainstream Democrats can legally raise an unlimited amount of money from individual donors, whereas a campaign can only receive up to $3,300 from a single contributor during a primary or general election fight. Hoffman has given over $1.5 million to the Mainstream Democrats PAC since it launched during the 2022 congressional midterms, according to Federal Election Commission records. His latest $1 million donation is the top registered donation to the group so far this cycle, as it's raised just over $1.4 million since the start of the year, according to FEC records. Other top donors to the PAC include Deborah Simon, the daughter of Simon Property Group co-founder, Mel Simon. She donated $1 million to the PAC last year, according to FEC records. Investors Daniel Benton and Paul Finnegan have each donated $100,000 so far this year, according to the campaign finance records. Tlaib and Bush faced primary challenges during the 2022 election but went on to get reelected. Bush is already facing a primary fight from St. Louis County Prosecuting Attorney Wesley Bell, who dropped his bid to unseat Sen. Josh Hawley, R-Mo., in order to run against the progressive Democrat. Tlaib has yet to see a primary challenge this cycle. The PAC did not respond to requests for comment. Hoffman did not return a request for comment. The possible primary fight would be the latest election cycle that the Mainstream Democrats PAC has moved against candidates from within the Democratic Party. The Mainstream Democrats PAC helped defeat some progressive Democrats during the 2022 congressional midterms, according to data from the nonpartisan OpenSecrets. The PAC spent just over $150,000 on advertisements against progressive Nina Turner, who ended up losing in a primary against Rep. Shontel Brown, D-Ohio. They invested just under $750,000 in support of Rep. Henry Cuellar, D-Texas who overcame a primary challenge by progressive challenger Jessica Cisneros. They also have their own ties to the Democratic Majority for Israel, a pro-Israel organization that runs both a 501(c)(4) and a PAC, which also spent heavily against progressive Democratic candidates for Congress last cycle. The Democratic Majority for Israel's nonprofit donated $500,000 to the Mainstream Democrats PAC last year, according to an FEC record. The Intercept reported at the time that Mainstream Democrats and the Democratic Majority for Israel share the same pollster as well as office space.

https://www.cnbc.com/id/100044274

SPG

Simon Property Group

Simon Property Group third-quarter FFO rises

Oct 25 (Reuters) - Simon Property Group Inc reported an 18.8 percent increase in a key earnings measure on higher rents and sales at its malls and outlet centers, easily beating estimates, and the real estate investment trust raised its outlook for the year. Third-quarter funds from operations (FFO) rose to $720.1 million, or $1.99 per share, from $606.2 million, or $1.71 per share, a year earlier, the company said on Thursday. Revenue increased 14.4 percent to $1.23 billion. Analysts, on average, had expected FFO of $1.92 a share on revenue of $1.19 billion, according to Thomson Reuters I/B/E/S. FFO is a REIT performance measure that usually excludes gains or losses from property sales and removes the effect that depreciation has on earnings. Simon increased its FFO forecast for the year, excluding items, to a range of $7.80 per share to $7.85 per share from a previously raised $7.60 per share to $7.70 per share. The company's forecasts tend to be conservative, and Simon often raises them each quarter. Analysts expect $7.76 per share, according to Thomson Reuters I/B/E/S.

https://www.cnbc.com/2023/08/31/jcpenney-is-spending-1-billion-on-store-and-online-upgrades-in-latest-bid-to-revive-its-business.html

SPG

Simon Property Group

JCPenney is spending $1 billion on store and online upgrades in latest bid to revive its business

JCPenney said Thursday it plans to spend more than $1 billion by the end of 2025 in a bid to revive the storied but troubled 121-year-old department store chain. The money is going toward remodeling JCPenney stores, upgrading its online shopping site and app, and making its supply network more efficient so that online orders are delivered more quickly. JCPenney's CEO Marc Rosen, who took the company's helm in November 2021 and has served as an executive at Levi Strauss and Walmart , is renewing the chain's focus on its core middle-income shoppers with affordable fashion and housewares. "Now is the time more than ever to lean into that and make sure that we're delivering that experience for our customer," Rosen said in an interview with The Associated Press. That's a change of tactics from previous management teams that pursued wealthier shoppers with offers of trendy items and major appliances. As part of the plans unveiled Thursday, check-out stations that had been located throughout JCPenney's stores will be replaced with a single area of cashiers. Shoppers will also see brighter lighting and a fresh coat of paint. Store employees will be equipped with mobile devices to scan inventory and ring up shoppers' purchases. And the chain is making upgrades to its Wi-Fi networks to speed up in-store connections. But JCPenney is playing catch-up with its competitors — from discounters to department stores like Macy's and Walmart — that have been upgrading their stores and online businesses, underscoring the challenges faced by the retailer based in Plano, Texas. JCPenney, which emerged from Chapter 11 reorganization in December 2020 with new owners, not only has grappled with years of internal issues but also faces an uncertain economy that has challenged healthier department stores. The chain's core customers are budget-conscious families, whose median income ranges from $50,000 to $75,000. They've been particularly hit hard by higher costs basic items and high interest rates, making borrowing on credit cards and taking out a mortgage more expensive. Rosen said JCPenney's customers are spending $700 more per month than two years ago just for basic necessities, like rent, gas and food. He noted they're seeking competitive prices as well as a good shopping experience. But in this tough economy, JCPenney has a role, Rosen said. He believes shoppers are finding other department stores too expensive, while online retailers and off-price stores don't give them the customer service JCPenney shoppers are looking for. The company filed for bankruptcy reorganization in May 2020 after the pandemic-induced temporary closing of stores put the already struggling retailer deeper in peril. Under new owners — mall companies Simon Property Group Inc. and Brookfield Property Partners LP — JCPenney shuttered nearly a quarter of its 850 stores. It now has roughly 650 stores. It has less than $500 million in debt, down from nearly $5 billion at the time of its bankruptcy filing, Rosen said. As part of the latest remodeling push, Rosen said 100 stores have been refurbished. The plan is to remodel anywhere from 50 to 100 per year, he said. The retailer has been rebuilding its beauty business after Sephora announced a deal to leave the chain for rival Kohl's three years ago. As part of its overhaul, it has been highlighting beauty products that cover a wider range of skin tones. One third of its customers are of color. The company said that more than 50% of its beauty brands are either owned by females or people of color. The retailer launched new store label brands like Mutual Weave men's clothing and reintroduced some national brands like Adidas. It launched national labels such as Forever 21, owned by Authentic Brands Group LLC, which has a minority stake in JCPenney. It also teamed up with celebrity stylist Jason Bolden to recreate collections for two of its store label brands, J. Ferrar and Worthington, a long-time brand it brought back. Most importantly, Rosen said JCPenney has worked hard to keep the basics like jeans, white-T-shirts, and sheet sets in stock with the full size range or full color assortment, a problem that has plagued the chain and frustrated shoppers. Rosen said the changes have helped increase the number of repeat visits of existing customers to both stores and online. More than 50 million customers have visited JCPenney in the past three years, he said. After about five years of declines, it's now seeing customers coming to JCPenney more frequently — a 5% increase. As for its beauty departments,25% are new customers, he noted. "That's showing us that if we get the basic relevant experience right, then they're going to come to us more frequently because they know the brand, they're shopping us already and they're now starting to shop across more areas of the store and come more frequently, " he said. Placer.ai, which tracks people's movements via cellphone usage, show that visits for JCPenney stores are down 24% compared with the year-ago period. Rosen arrived at JCPenney when its annual revenue ranged between $8 billion and $9 billion and that number was unchanged last year. He expects it could decline slightly this year because of all the economic uncertainty. It had annual sales of roughly $11.2 billion when it filed for bankruptcy, but also ran more stores back then. Neil Saunders, managing director of GlobalData Retail, said he was recently at a JCPenney store in Phoenix, and the stores looked messy, and there were gaps on shelves. But he did praise the beauty area. "They may have steadied the ship, but they have not revived the brand," he said.

https://www.cnbc.com/2023/07/06/wolfe-research-says-buy-this-mall-operator-thats-trading-at-a-discount.html

SPG

Simon Property Group

Wolfe Research says buy this mall operator that's trading at a discount

Shopping mall developer Simon Property Group is a "cash engine," according to Wolfe research. The firm upgraded the company to outperform from peer perform. Its price target of $127 implies 7.4% upside from where shares closed on Wednesday. Including dividends, Wolfe sees a return of about 15%. "We expect internal growth to be relatively stable (~2.5% SSNOI) as share is taken from closing malls. In addition, the company is a cash engine at just ~70% AFFO payout ratio which we assume will be used to fund external growth - particularly buybacks," analyst Andrew Rosivach wrote in a Wednesday note. "We believe now is a target rich environment for SPG for capital deployment — be it buybacks (given multiple) or acquisitions (as competitors retreat from the space)," he added. While Rosivach expects the real estate business to remain relatively stable, he added that a decline in retail sales amid a difficult macro backdrop is an overhang on the company. "However, on an encouraging note, Authentic Brands Group, where SPG held a 12.3% position as of March 31, recently received incremental investment from General Atlantic," he noted. The company is currently trading at a discount to Wolfe's strip center and overall coverage, said Rosivach. "In fact, SPG is currently trading well below its historic discount to our overall coverage. Our review of supply-demand in the space is constructive which should allow for some convergence in the valuation bifurcation. Shares of Simon Property Group are trading near the flatline in 2023, but have jumped more than 22% over the past 12 months. SPG 1Y mountain SPG in past year —CNBC's Michael Bloom contributed to this report.

https://www.cnbc.com/2020/08/10/simon-property-group-spg-reports-q2-2020-earnings-fell.html

SPG

Simon Property Group

The biggest US mall owner Simon says still looking to salvage other distressed retailers

Simon Property Group Chief Executive David Simon said Monday that the company is still looking to salvage additional distressed retailers, having already made bids for bankrupted Lucky Brand, Brooks Brothers and J.C. Penney. "We're acquiring inventory at or below cost," Simon said, explaining the company's acquisition strategy during a conference call with analysts. "There's profit in there." "We continue to look for other opportunities," he said. "We are doing our fair share for trying to keep this world as normal as we can." As an example, the CEO noted that saving Brooks Brothers from a total liquidation would save around 4,000 jobs alone. "I don't buy into this analysis you guys have gotten that we're buying into these retailers to pay us rent," he said. Simon Property shares were falling around 1% in after-hours trading, having closed the day up more than 5%. A report late Sunday said Simon has been in talks with Amazon to open warehouses at some shuttered Sears and J.C. Penney department stores had boosted the company's stock price Monday. So far this year, more than 40 retailers have filed for bankruptcy. CEO Simon likened the trend rippling through the retail industry to the early '90s, when there were more lasting impacts after a wave of bankruptcies including the rise of e-commerce, more than the period after the Great Recession, where trends bounced back to normal relatively sooner. "We're anticipating more of a durational impact here," he said. "This is not your grandmother's recession ... we're dealing with a lot more bankruptcies."

https://www.cnbc.com/2020/11/15/mall-owners-simon-taubman-revise-merger-terms-800-million-price-cut.html

SPG

Simon Property Group

Mall owners Simon and Taubman revise merger terms, with $800 million price cut

Shoppers ascend and descend escalators at the King of Prussia Mall, owned by Simon Property Group, United State's largest retail shopping space, in King of Prussia, Pennsylvania. Luxury mall owner Taubman Centers has agreed to a lower price to merge with the biggest mall owner in America, Simon Property Group , the companies announced Sunday, evading what could have been a heated legal battle during the holidays. Under the new deal, Simon will now pay $43 per share for Taubman, down roughly 18% from an original price of $52.50. The companies also said that they have settled their pending litigation. Simon and Taubman were set to face each other in Oakland County Superior Court in Michigan, beginning Monday, to negotiate the contested deal. In February, prior to the coronavirus pandemic arriving in the United States, Simon had agreed to buy Taubman in a deal valued at $3.6 billion, eyeing Taubman's 26 high-end malls that include a handful in Asia. But the company then announced in June that it was exercising its contractual rights to terminate the deal. Among other things, Simon was arguing that Taubman's portfolio of shopping malls were suffering more than some of its peers' during the pandemic, due to lack of tourism and luxury spending. Taubman quickly filed a counterclaim, and the two were headed to court. But the announced revised terms signal there is hope in the retail real estate industry that traffic will rebound at America's best malls once a vaccine for Covid-19 is widely distributed and consumers regain confidence to head back to stores to shop. Even prior to the pandemic, malls had been suffering from falling foot traffic with more people shopping online, and retail and restaurant tenants closing stores or going bankrupt. The pain has been especially strong from embattled department store chains like Bon Ton and Sears. Two mall owners — CBL and Pennsylvania Real Estate Investment Trust — filed for Chapter 11 bankruptcy protection earlier this month. With the new deal, Simon saves close to $800 million. Taubman has also agreed not to declare nor pay a common stock dividend before March of 2021. The original deal structure, where Simon will acquire an 80% ownership interest in Taubman while the Taubman family will sell roughly one-third of its ownership stake and remain a 20% partner, remains unchanged, the companies said. Both Simon's and Taubman's boards of directors have approved the terms of the transaction, which is expected to close either later this year or in early 2021. It remains subject to Taubman's shareholders' approval. Simon shares are down about 50% this year, while Taubman shares are up about 27%. Read the full press release here.

https://www.cnbc.com/2020/08/10/mall-owner-simon-shares-jump-on-reported-real-estate-talks-with-amazon.html

SPG

Simon Property Group

Simon shares jump on reported talks with Amazon. But converting stores to warehouses may face hurdles

Shoppers ascend and descend escalators at the King of Prussia Mall, owned by Simon Property Group, United State's largest retail shopping space, in King of Prussia, Pennsylvania. Shares of Simon Property Group jumped Monday following a report that said the biggest U.S. mall owner is in talks with Amazon to turn shuttered Sears and J.C. Penney stores into warehouses, as it looks to fill vacant space and collect more rent. Simon's stock was up more than 10% in trading ahead of its earnings report after the market's close Monday. Amazon's discussions with Simon are focused on turning some ailing department store spaces into last-mile fulfillment centers, The Wall Street Journal reported Sunday, citing people familiar with the situation. Both Sears and Penney have filed for bankruptcy protection — Sears in October 2018 and Penney in May — as department stores have largely fallen out of favor with shoppers. The two companies have been looking to close underperforming stores, as they try to mount a turnaround. Simon declined to comment on the report. Amazon has a policy of not commenting on rumors or speculation, according to a statement emailed to CNBC. According to the Journal report, it is unclear how many spaces inside of Simon's malls are being considered by Amazon. The company operates 63 Penney locations and 11 Sears stores, according to the company's most recent public filing in May. Real estate analysts view the potential move as a positive one, at least in the near term, considering how hard the retail landscape has been hit by the coronavirus pandemic. Already, more than 40 retailers have filed for bankruptcy in 2020, and permanent store closures announced by retailers this year have topped 4,000 and are on pace to break a new record, according to a tracking by Coresight Research. Mall owners such as Simon, in turn, are scrambling to find new uses for retail space when few retailers are still growing. The Covid-19 pandemic has only exacerbated challenges, by hurting movie theaters, entertainment venues, gyms, co-working facilities and restaurants. These types of businesses had, up until recently, been considered alternative uses for retail space, by Simon and other mall operators. "In this environment, it will be difficult to fill boxes of that size in the short-term," said Joseph Malfitano, founder of turnaround and restructuring firm Malfitano Partners. "A deal with Amazon provides a quick fix as these locations would likely need to be subdivided, which would take time and money." Another potential obstacle would be how a mall property is zoned by local governments. Warehousing is considered an industrial use, not a commercial one. This means the former department stores may need to be rezoned, and the surrounding community and other retailers and restaurants at the mall might not welcome the change. Another factor would be the number of trucks and traffic in and out of mall parking lots, especially overnight, analysts said. An Amazon warehouse could also bring in less rent per square foot than a typical department store tenant would. Warehouses typically pay between $5 to $10 per square foot in rent, whereas department stores can pay closer to $20, Sandler O'Neill + Partners real estate investment trust analyst Alexander Goldfarb said. But right now, "any community wants tax revenues ... malls are huge tax drivers to the community," Goldfarb said. The dire situation that the coronavirus pandemic has inflicted might make a community more willing to accept an industrial tenant moving into the local shopping mall, he said. Another hurdle for Simon would be co-tenancy clauses, which can be triggered when one or a number of anchor tenants at a mall leave the property. This legal provision essentially gives tenants within the mall power to renegotiate their leases, potentially paying less in rent, when a major department store chain goes dark and traffic drops off. "A tenant like Amazon ... could trip co-tenancy provisions for other tenants, which will also cost landlords money," Malfitano said. Regardless, the need for e-commerce fulfillment hubs is clearly spiking across the country, often outweighing supply in markets, as consumers are buying more and more online. Demand for industrial real estate could reach an additional 1 billion square feet by 2025, according to a July report from the commercial real estate services firm JLL. Prior to the Covid-19 crisis, about 35% of its industrial leasing activity was related to e-commerce, JLL said. But now, as much as 50% of that leasing activity has already been tied to the online retail industry in 2020. Simon has partnered with rival mall owner Brookfield Property Partners as one of three bidders looking to salvage Penney from bankruptcy, CNBC previously reported. Penney's lenders have until midnight Tuesday to select a winning bidder, according to court documents. It is unclear whether Simon Chief Executive David Simon will mention the Penney deal or other potential transactions, including one with Brooks Brothers, during Monday's earnings conference call. Analysts also are eager to hear how mall rent collections are trending since stores have reopened, and how the real estate company is faring in trying to get out of its deal to buy high-end mall owner Taubman . It terminated the $3.6 billion transaction in June. But Taubman is still pushing ahead with it. Simon shares have fallen about 54% this year. The company has a market cap of nearly $21 billion.

https://www.cnbc.com/2020/12/08/why-these-7-us-mall-owners-including-simon-are-in-trouble-sp.html

SPG

Simon Property Group

Here's why these 7 U.S. mall owners, including Simon, are in trouble, S&P Global MI warns

With winter looming, America's mall owners face troubling days ahead in the global health crisis, according to a new report from S&P Global Market Intelligence. As the Covid pandemic worsens, and cases and hospitalizations keep climbing to new records in the U.S., mall owners face the threat of additional shutdowns, which could paint an even bleaker picture for landlords heading into the New Year. Following a round of lockdowns and stay-at-home orders that began in March and abated during the summer months, retailers had a moment of reprieve to try to get their businesses back on track. But the temporary hardships were enough to push two mall owners, CBL & Associates and Pennsylvania REIT , into bankruptcy. Both filed for Chapter 11 protection on Nov. 1. Now, the United States is entering what many describe as the country's darkest days yet. California recently implemented new regional lockdowns. Chicago is advising its residents to stay at home. Other cities are expected to follow suit. There likely will be more mall shutdowns to come. In a report released Tuesday, S&P's Quantamental Research group highlighted seven names, including CBL and PREIT, that face exceptional risks in the coming months. The other five are: Simon Property Group , Taubman Centers , Brookfield Property REIT , Macerich and Washington Prime Group . In selecting these seven companies, S&P said it considered a handful of risk factors, including: Higher percentage of anchor tenants (namely department stores) that have declared bankruptcy this year; lower building permit activity; falling foot traffic; degree of leverage; cash flow; and the overall proportion of tenants that have filed for bankruptcy. The graphic highlights some of these metrics, compiled by S&P, for the seven companies during the month of October 2020. Change in shopper traffic and permit activity are represented on a year-over-year basis.

https://www.cnbc.com/2020/11/17/holiday-2020-retailers-try-to-make-returning-online-purchases-easier.html

SPG

Simon Property Group

Retailers tap mall owner Simon to help make returning online purchases easier

First comes the holiday season, then the flood of returns. With e-commerce sales exploding during the coronavirus pandemic, retailers may see more returns than ever before. After all, shoppers do not have the chance to touch or try on the items they're ringing up on the internet. Then, there are the unwanted gifts: the sweaters from grandma that don't fit or coffee makers they didn't really need. A forecast from Salesforce estimates there will be roughly $280 billion worth of returns this holiday season. And so, retailers are looking for solutions to this billion-dollar problem, to give shoppers a way to make returns other than through the mail, which packs on shipping and handling costs for companies, and can be more burdensome for consumers. Amazon , as one example, has been working with Kohl's to accept its returns at hundreds of its department stores. Third-party returns platforms like Happy Returns and Narvar are teaming up with brands to accept their returns at pop-up kiosks in malls, or at places like Walgreens and FedEx . Mall owners are looking for other ways to help, too. "Returns are probably the most important way in which you retain customers in retail," said Suketu Gandhi, a partner at global management consultant Kearney's digital transformation division. When people have a good experience making a return, they're likely to return to shop from that retailer again, and develop greater trust with the brand, he explained. But the reverse logistics of the returns process is "probably the weakest area of logistics right now," in the retail industry, he said. "Companies should be using a physical location to accept returns," because it helps slash expenses and also is less painful for consumers, Gandhi added. The biggest U.S. mall owner Simon Property Group said Tuesday it is partnering with Narvar to give customers the option of dropping off returns at the concierge desk at a half-dozen of its malls, including The Mills at Jersey Gardens in New Jersey and the Forum Shops at Caesars Palace in Las Vegas. The service is kicking off during the holidays but will last indefinitely, the companies said. To start, about two dozen retail brands will be participating in the platform, the companies said, including Levi's , Gap , Vera Bradley and Dockers. When initiating a return online, customers for these brands will now begin to see nearby Simon malls as an option, in addition to putting a return in the mail. They'll simply bring a QR code to Simon's guest services desk, where a Simon employee will handle the rest of the returns process. The service comes just in time for the holidays, and well in advance of Jan. 2, which is typically the busiest day for holiday returns in the United States. This year the process of returning items could be even more challening. With Covid-19 cases rising, cities and states could reimpose lockdown measures that could temporarily close stores or reduce operating hours. Not to mention, that retailers have closed thousands of stores this year, in a bid to trim unprofitable pieces of their businesses and revive performance. But that also means fewer stores to offer returns. Shoppers may buy an item from a favorite retailer online, and no longer have a physical store nearby for returns. "As retail responded to the pandemic, we saw the increasing importance of return drop-off points," said Brady Stewart, senior vice president and managing director of Levi's direct-to-consumer division. "If anything, the pandemic has highlighted that consumers like having options for shopping, purchasing and returns." According to Amit Sharma, founder and CEO of Narvar, 60% to 70% of returns pre-pandemic were transacted in stores, as most people would prefer to not have to print off a return label from home, nor wait for a refund after receiving confirmation that their returns have been received in the mail. "The brands and merchants that we speak with still see a value of being in the mall, even if they don't have the same store footprint anymore," Sharma said. As for Simon, if more people come to its malls to make returns, it could potentially boost the number of shoppers that visit stores while they are there, or they may grab a snack or a drink at the food court. "Offering a variety of services at our properties helps consumers consolidate errands and save time, driving incremental visitation," said Andy Hutcherson, senior vice president of innovation and customer experience for Simon.

https://www.cnbc.com/id/30501731

SWKS

Skyworks Solutions

Executive Decision: Skyworks Solutions CEO David Aldrich

Semiconductors are commodities, right? Anyone can make a chip? So investors can switch out, say, Skyworks Solutions for any of its competitors? In fact, without proprietary technology, why own any of the stocks in this group at all? Not true, said Skyworks CEO David Aldrich. He spoke to Mad Money on Thursday about this, as well as a recent downgrade of his stock, news that Apple plans to design its own chips and his proof that the economy is turning up. Watch the video for Cramer’s full report. Call Cramer: 1-800-743-CBNC Questions for Cramer? madmoney@cnbc.com Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

https://www.cnbc.com/id/39801237

SWKS

Skyworks Solutions

Lightning Round: Ralph Lauren, Skyworks Solutions, Baidu.com and More

Skyworks Solutions : SWKS is a buy, Cramer said. Baidu.com : BIDU has “one of the great growth stories in the world,” Cramer said. “I really do like Baidu.” Investors who got in between $30 and $40 may want to take some profits, but he expects still more gains from this stock. Under Armour : “I like Nike more,” Cramer said. He thinks this stock may have run up too much. Call Cramer: 1-800-743-CNBC Questions for Cramer? madmoney@cnbc.com Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

https://www.cnbc.com/id/34364244

SWKS

Skyworks Solutions

Lightning Round: Freeport-McMoRan, Skyworks Solutions, Time Warner and More

Smith Micro Software : Stay away from SMSI, Cramer said. Go with Skyworks Solutions instead. AngloGold Ashanti : Cramer would rather see investors in the SDPR Gold Shares ETF . Lions Gate Entertainment : Sell LGF, Cramer said. The only movie companies he will endorse right now are Time Warner and The Walt Disney Co.. Kenross Gold : Sell KGC, Cramer said. He thinks buying gold, whether through bullion, coins or the SPDR Gold Shares ETF, are safer plays than the gold-related stocks. Call Cramer: 1-800-743-CNBC Questions for Cramer? madmoney@cnbc.com Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

https://www.cnbc.com/2020/07/27/skyworks-ceo-sees-an-incredible-opportunity-in-5g-for-the-chipmaker.html

SWKS

Skyworks Solutions

Skyworks CEO sees an 'incredible opportunity' in 5G for the chipmaker

Skyworks Solutions CEO Liam Griffin on Monday told CNBC's Jim Cramer that the 5G rollout remains at the very beginning as more signs of the need for the next generation of wireless technology emerge. "These themes are playing out," he said in a "Mad Money" interview. "One of the amazing things here is, despite you know the horrific effects of the pandemic, we're seeing a usage case" change "for connectivity. Seemless, safe wireless connectivity is really, really critical today for everyone as we work, as we play, as we educate" in more remote settings. To illustrate the high demand load for data online, Griffin explained that consumers begin watching about 84,000 videos on the internet each second of the day. About 5 million Skype calls are also being conducted every second and the growing demand for telemedicine is hard to track at this time, he said. Skyworks develops semiconductors for mobile communications systems. "If you think about where that world is going, where our world is changing, it's going to be an incredible opportunity for Skyworks in so many different markets," Griffin said. On Friday, Skyworks reported earnings of $1.25 per share on revenue of $737 million. The chipmaker's profit topped estimates by 13 cents a share and revenue by nearly $50 million. The company's business was powered by growth in its 5G-related products. Skyworks shares rose almost 4% to $136.69 in Monday's session. The stock is up 13% year to date.

https://www.cnbc.com/id/29957540

SWKS

Skyworks Solutions

Lightning Round OT: Skyworks Solutions, FedEx and More

FedEx :UPS in the mid-$40s is the buy here, Cramer said. Sigma-Aldrich : Cramer’s bullish on SIAL. Skyworks Solutions : Cramer recommended Skyworks, saying he thinks the stock could move toward $10. Questions for Cramer? madmoney@cnbc.com Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

https://www.cnbc.com/id/49752142

SWKS

Skyworks Solutions

Lightning Round: Generac, PPL, Skyworks Solutions and More

Generac : Wait for this stock to fall below the $30 level before considering buying shares, Jim Cramer said. Changyou.com : While Cramer likes China's economy as a whole, he's not really interested in most Chinese stocks right now.

https://www.cnbc.com/2019/07/19/skyworks-and-apple-upgraded-together-but-expert-says-you-can-separate-the-two.html

SWKS

Skyworks Solutions

Skyworks and Apple upgraded together, but one expert says you can separate the two

Skyworks , like the rest of the semiconductors, has had a volatile few months, rising and falling on news about U.S.-China trade tensions and Huawei's blacklisting. But its ties to something more stable — Apple , one of its customers — could send it higher, according to one Wall Street firm. Raymond James thinks the two stocks will go up together: it upgraded both to outperform ratings on Thursday, predicting that Apple will successfully roll out a 5G iPhone in 2020. While the concept of 5G networks remains a buzzword for most people, Raymond James thinks it will prove appealing to customers, especially because of the better connectivity. The call resonated with Steve Weiss of Short Hills Capital Partners, who has called Skyworks one of his "5G plays" for many months and who has seen the stock go up 12% after adding to his exisiting position on June 13. He reiterated that reasoning on Thursday's "Halftime Report": "I think 5G is the place to be. It's the one theme in technology you definitely go, like cloud was a few years ago. That's why I own [Skyworks]." Weiss also agrees with Raymond James' argument that "most of what could go wrong for Skyworks has already happened." In particular, he pointed out, "They've already preannounced [earnings] based on their exposure to Huawei. So I think that's out of there. The management of the company would have to be pretty...stupid to really miss a quarter after they preannounced." Despite his confidence in Skyworks' earnings, however, Weiss advises investors not to get into the stock right now. "One reason why I wouldn't buy it this quarter [is] because Apple sales, I believe, will be disappointing." That's where Weiss diverges from the Raymond James analyst, who acknowledges that this year's iPhone cycle is likely to be the weakest in years but predicts that the two companies will go up together in the long term. Weiss, on the other hand, believes in the Skyworks story more than the Apple one. He owns both stocks, but also owns shorter-term puts in Apple. Weiss' biggest position in the space is SMH , the semiconductors ETF, which he believes is less risky than individual names. The traders are split on this one, though — while Weiss is happy holding, Joe Terranova of Virtus Investment Partners just sold the ETF. SMH has gone up 17% since Terranova bought it last month. Why is he selling now? "I wanted the diversification of an ETF [when I bought it]… Now I want that capital because we've got technology companies individually reporting… I want the capital to allocate towards good fundamental earnings stories in individual stocks that I'm going to hear about over the next couple weeks." He is keeping an eye out on the FAANGs in particular, none of which he currently owns. Three of the FAANG stocks are reporting next week: Facebook on Wednesday, and Alphabet and Amazon next Thursday. Apple will report earnings on July 30. Disclosure: Stephen Weiss owns shares of Apple, Skyworks Solutions Inc and Vaneck Vectors/Semiconductor ETF. He also owns puts in Apple.

https://www.cnbc.com/id/49422583

SWKS

Skyworks Solutions

Lightning Round: Skyworks Solutions, AT&T, Annaly Capital and More

Liquidity Services : Jim Cramer would like to do some research before making a call on LQDT. Eagle Rock Energy : Cramer doesn't like this stock right now. Skyworks Solutions : The "Mad Money" host said he can't get behind most semiconductor maker stocks right now, including SWKS.

https://www.cnbc.com/2023/12/04/buy-these-stocks-with-high-dividend-growth-and-free-cash-flow-yield-wolfe-says.html

SWKS

Skyworks Solutions

Buy these stocks with high dividend growth and free cash flow yield, Wolfe says

Investors preparing for an economic slowdown may like dividend-paying stocks, but they should be specific with their strategy, according to Wolfe Research. Dividend-paying names are usually seen as protection during downturns. The U.S. economy is slowing, but economists are mixed on whether they think there will be a recession next year. In a late-cycle environment, dividend growth becomes scarce and investors tend to pay up for names with those income prospects, Wolfe's chief investment strategist, Chris Senyek, pointed out in a note to clients last week. The best long-term dividend growth strategy is to buy stocks that offer a combination of high dividend growth and high free cash flow yield, the strategist said. "Historically, this cohort of stocks has outperformed by 500+ basis points annually," he said. "Additionally, this combination performs very well in later cycle/recessionary environments." Here are 10 names that Wolfe likes for their high dividend growth and free cash flow yields. CVS Health' s stock may be having a tough time, with shares off more than 3% in the past month. However, income investors are being rewarded with its 3.6% yield. The pharmacy giant has a dividend growth of 10% over the last 12 months, Wolfe said. CVS' third-quarter adjusted earnings and revenue beat Wall Street's expectations, a quarter after the pharmacy chain kicked off a cost-cutting program that eliminated 5,000 jobs. The job cuts were largely corporate ones, CEO Karen Lynch told CNBC . "It was really to realign the company so that we can focus our initiatives on our strategy of health-care delivery and technology and we are continuing to hire in those spaces," she said in an Nov. 8 interview on " Squawk on the Street ." Kroger 's stock has also stumbled this past year, with its shares down about 6% in the past 12 months. Nevertheless, but is giving investors a 2.6% yield. It has dividend growth of 20% over the last 12 months. In September, the grocery store chain posted a beat on adjusted earnings but missed on revenue for its fiscal second quarter. Chip stocks also made the cut, including NXP Semiconductors , Skyworks Solutions and Qualcomm . NXP Semiconductors, for instance, has a 2% dividend yield and last 12 months dividend growth of 32%. It has a 6% estimated free cash flow yield for 2024. Meanwhile, Qualcomm has a 6% estimated free cash flow yield for 2024 and 9% last 12 months dividend growth. The company, which has a 2.5% dividend yield, recently beat on quarterly adjusted earnings and revenue. Qualcomm also gave a strong forecast for the current quarter. — CNBC's Michael Bloom contributed reporting.

https://www.cnbc.com/2019/06/04/huawei-blacklist-by-trump-hammering-skyworks-and-other-manufacturers.html

SWKS

Skyworks Solutions

Trump's blacklisting of Huawei is hammering some US manufacturers — Skyworks is the latest

The U.S. Commerce Department added Huawei and dozens of its subsidiaries to the so-called Entity List , disallowing them from buying products from U.S. companies without a license . Skyworks lowered its quarterly earnings and revenue forecast on Tuesday, telling investors that it stopped shipping products to Huawei. Shares of Skyworks dropped more than 1% at one point in extended trading and have tumbled 12% since May 15, when President Donald Trump signed an executive order declaring a national emergency because "foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology and services." The Trump administration's blacklisting of Huawei is punishing several U.S. technology companies that provide components to the Chinese networking giant. The latest to acknowledge the problem is chipmaker Skyworks Solutions . "Skyworks ceased all shipments to Huawei and its affiliates as of the date Huawei was added to the Entity List and cannot currently predict if and when shipments will resume," the company said in a statement, adding that 12% of revenue came from Huawei. Other companies are similarly feeling the pain. Two weeks ago, Qorvo , which makes radio frequency and Wi-Fi products for mobile devices, cut its guidance and said it's no longer distributing to Huawei and is uncertain when shipments might pick back up. Optical components manufacturer Lumentum Holdings also reduced its forecast on the Huawei news, while Neophotonics , which makes parts for quickly transferring data over networks, announced a write-down of inventories. The companies' stock prices are down 12% to 24% since Trump's executive order. "We are probably the largest public U.S. company with a concentrated position with Huawei," Neophotonics CEO Tim Jenks said at a Cowen conference last week. According to its annual report, Neophotonics gets 46% of revenue from Huawei. Skyworks said that for the fiscal third quarter, which ends this month, the company reduced its revenue forecast by $60 million to a range between $755 million and $775 million. It lowered its earnings-per-share forecast by 16 cents to $1.34. Skyworks also does business with Apple , which provided 47% of total revenue in its latest fiscal year. Following the Commerce Department's announcement last month, the agency eased some restrictions in the short term to enable continuity for telecommunications companies that have used Huawei products. China responded by saying it would prepare a list of "unreliable entities" that cut off the flow of products to Chinese businesses and "seriously damage the legitimate rights and interests of Chinese enterprises." The spat represents the latest escalation in the trade war between the world's two largest economies after talks collapsed last month. Both countries have slapped more tariffs on billions of dollars worth of each other's goods in addition to stepping up the rhetoric. Even without the blacklist, U.S. tech companies are concerned that higher tariffs will disrupt supply chains and lead to increased prices. "Clearly, the implementation of incremental tariffs on the complete list of products imported from China would have industry-wide impacts," HP Inc. CEO Dion Weisler told analysts on a conference call last month. Tech executives can only hope the current dispute is temporary given the reliance many companies have on China. "They're a formidable company — $120 billion global supply chain," Neophotonics' Jenks said. "As a result, we expect ultimately that they continue as a customer at some level." WATCH: Huawei could be open to 'mitigation measures' to address US security concerns, says security chief

https://www.cnbc.com/2021/04/24/price-hikes-ahead-but-consumer-companies-hope-shoppers-wont-notice.html

SJM

J.M. Smucker Company (The)

Attention shoppers: Price hikes are ahead, but consumer companies hope you won't notice

In this article SJM KMB HSY MDLZ GIS KHC PEP PG KO Follow your favorite stocks CREATE FREE ACCOUNT Shoppers search for items at a Costco Wholesale store August 4, 2020 in Colchester, Vermont. Robert Nickelsberg | Getty Images Inflation is coming. Look no further than Coca-Cola and Procter & Gamble sharing plans this week to raise prices to offset rising commodity costs. The costs of raw materials, ranging from lumber to resin, are surging, so companies are taking steps to protect profits. The price increases follow a year of surging demand for a host of items from paper towels to jars of peanut butter. Sales of consumer packaged goods rose 9.4% to $1.53 trillion last year, according to the Consumer Brands Association. Many manufacturers pulled back on advertising and promotions as they tried to keep up with demand, gaining market share without much marketing. ING Chief International Economist James Knightley is forecasting consumer prices will continue to rise in the near term and could gain almost 4% by May, compared with the same time a year ago. The consumer price index, which tracks how much U.S. consumers pay for a basket of goods, rose 2.6% in March from the year-ago period, according to the Department of Labor. Inventories are 'too low' Low inventory is helping companies flex their pricing power, he said. "According to the Institute for Supply Management, their latest survey showed a net 40% of manufacturers are reporting that their customer inventories are 'too low,'" Knightley said. "This offers more evidence that corporate pricing power is strengthening." Zoom In Icon Arrows pointing outwards Food industry analyst Phil Lempert said numerous factors have increased costs for farmers that pick produce, factories that make consumer packaged goods and meatpacking plants that process beef, pork and chicken. Ports are congested, truck drivers are in short supply and food workers must try to socially distance. That's made it harder to keep up with demand and get items, from grains to Italian cheeses, shipped across the globe. Price hikes get stealthy Moody's analyst Linda Montag said that she doesn't view higher prices as a competitive advantage because all consumer companies are facing higher commodity costs. Besides Coke and P&G, PepsiCo , Kimberly-Clark , General Mills and J.M. Smucker have addressed raising prices. And consumers might not even notice that they're paying more for diapers or soda. "Consumer companies across the board have gotten very savvy about how to implement price increases without just slapping on five to 10% price increases," Montag said in an interview. Some of those methods include using new packaging, selling smaller-size packs for the same price or offering promotions that bring the price down until consumers are used to the higher sticker price. Hedging positions may also give some manufacturers, like Coke and Pepsi, more flexibility to raise their prices gradually because they won't feel the impact of higher commodity costs for several quarters. More cash in consumer pockets means less risk Hiking prices always carries a risk that demand for those products will fall. However, Moody's analyst Chedly Louis said that she isn't expecting consumers to trade down to private label products because consumers put their trust in bigger brands during the crisis. That behavior is expected to stick around longer. "There's a potential for the consumer to trade down within P&G's product portfolio to cheaper, lower margin products. It's still P&G, but it's cheaper," Louis said. Many consumers also have more cash in their wallets from government stimulus checks and foregoing travel, sports games and fine dining for year. Not all companies have the same flexibility to raise prices. Piper Sandler downgraded Kraft Heinz stock on Friday, citing the company's relatively weak pricing power as one reason for the decision. Analyst Michael Lavery wrote that the company's pricing power lags behind that of peers like General Mills , Mondelez and Hershey , so hiking prices could hurt demand. Discounts are rare Most retailers will pass on the higher prices to consumers. Lempert said that grocers are juggling pricier services, like online grocery delivery or curbside pickup, leaving little room in profit margins to absorb higher food costs. The cost of groceries had already been rising as retailers offered fewer discounts while shoppers cleared shelves last spring and bought more cooking supplies than usual in the months that followed. Phil Tedesco, vice president of retail intelligent analytics for NielsenIQ, said in a typical month, 31.5% of units are sold on promotion. In March, only 28.6% of units were sold on promotion. "This has led to shoppers having fewer opportunities to take advantage of sales in the store, and as a result, the total cost of grocery products has increased slightly," he said. J.P. Morgan analyst Ken Goldman wrote in a note to clients on Monday that higher prices will help food retailers, particularly as they face tough comparisons to last year's skyrocketing demand. "Too much inflation is bad for grocers, but an incremental 2-3% (roughly the percentage the producers need to pass through), with a mix shift toward higher-priced products, is probably very helpful right now," he said. —CNBC's Melissa Repko contributed to this report.

https://www.cnbc.com/2020/04/21/jm-smucker-raises-sales-outlook-on-coronavirus-led-stockpiling.html

SJM

J.M. Smucker Company (The)

JM Smucker raises sales outlook on coronavirus-led stockpiling

Strong demand for J.M. Smucker's Jif peanut butter and other packaged foods helped the company raise its annual sales and profit forecast on Monday, as shoppers stocked up to weather lockdowns due to the coronavirus pandemic. Uncertainty around the duration of stay-at-home orders has triggered unprecedented demand for essential supplies, boosting sales for consumer goods companies and retailers, while also pressuring supply chains. The company said it would allocate order volumes to ensure consistent supply across its retail partners, as companies like Kroger and Costco Wholesale limit the number of items that individual customers can buy. Smucker, which also makes Folgers coffee, said it expects net sales to fall 1% in the fiscal year ending April 30, 2020, compared with a prior forecast for a drop of 3%. However, Smucker said the magnitude of demand increases has started to moderate. It also said it expects adjusted earnings per share to exceed the high end of its previous forecast range of $8.10 to $8.30, helped by falling costs and increasing production at all its manufacturing facilities. Smucker's shares rose 1% in extended trading and were on track to further a near 17% gain notched this year. Last week, Procter & Gamble beat Wall Street expectations for quarterly profit as it reported its best U.S. sales growth on demand for hand soaps, Tide antibacterial spray, and other detergents.

https://www.cnbc.com/2023/10/12/18-stocks-jim-cramer-is-watching-including-chipotle-target-nvidia.html

SJM

J.M. Smucker Company (The)

Here are 18 stocks I'm watching in the market Thursday, including Chipotle, Target, Nvidia

Here are some of the tickers on my radar for Thursday, Oct. 12, taken directly from my reporter's notebook: It's the one-year anniversary of the S&P 500 Hotter than expected September consumer price index, consumer inflation. The Social Security Administration issues announced a 3.2% cost-of-living adjustment for 2024. Chipotle Mexican Grill Bank of America upgrades Target TJX Companies Goldman Sachs tactical buy trades on Club names Wells Fargo Humana Nvidia BofA initiates Snowflake (SNOW) with a buy rating. If you like this story, sign up for Jim Cramer's Top 10 Morning Thoughts on the Market email newsletter for free.

https://www.cnbc.com/2020/04/20/stocks-making-the-biggest-moves-after-hours-ibm-jm-smucker-united-airlines-and-more.html

SJM

J.M. Smucker Company (The)

Stocks making the biggest moves after hours: IBM, JM Smucker, United Airlines and more

Check out the companies making headlines after the bell. IBM — The technology company's stock fell 3% in extended trading after IBM reported first-quarter financial results. The company reported revenue of $17.57 billion while analysts polled by Refinitiv expected $17.62 billion. IBM also said it had earnings of $1.84 per share excluding some items, while analysts anticipated $1.80 per share, according to Refinitiv. The company also withdrew its full-year 2020 guidance in response to the coronavirus. J.M. Smucker — The food and beverage company's stock rose more than 1% in extended trading after Smucker provided stronger guidance for fiscal 2020. The company said it expects adjusted earnings per share to surpass the high end of the previous guidance range of $8.10 to $8.30 for fiscal 2020, reflecting an increased contribution from sales. Smucker also estimates net sales to be down 1 percent to the prior year compared to previous guidance of down 3 percent, due mostly to increased demand. The company's free cash flow is also expected to exceed previous guidance of $850 million. Equifax — The consumer credit reporting company's stock jumped 5% during extended trading after the company reported first-quarter financial results. Equifax reported first-quarter earnings of $1.40 per share on revenue of $957.9 million. The company had earnings of $1.20 per share on revenue of $846.1 million during the same period a year ago. United Airlines — The airline's stock rose 1% after the closing bell. The company reported Monday that it had a $2.1 billion loss for the first quarter because of the coronavirus, its biggest loss since 2008. The airline has applied for up to $4.5 billion in government loans in addition to the $5 billion it expects to receive in federal aid. FLIR Systems — Shares of the thermal imaging system company rose 3% after the market closed. FLIR could be in a position to benefit as companies look to temperature-screen employees because of the coronavirus, according to analysts. Zions Bancorporation — The financial holding company's stock dipped 1% in extended trading after the company reported net interest income of $548 million in the first quarter versus $576 million a year ago.

https://www.cnbc.com/2019/08/27/stocks-making-the-biggest-moves-premarket-jm-smucker-more.html

SJM

J.M. Smucker Company (The)

Stocks making the biggest moves premarket: JM Smucker, Papa John's and Johnson & Johnson

Judge Thad Balkman speaks at the conclusion of closing arguments in Oklahoma's ongoing opioid drug lawsuit against Johnson & Johnson, Monday, July 15, 2019, in Norman, Okla. Check out the companies making headlines before the bell: Food producer J.M. Smucker earned an adjusted $1.58 per share for its latest quarter, compared to a consensus estimate of $1.74. Revenue also fell short of forecasts, with the company pointing to lower prices for coffee and peanut butter as well as increased competition in the dog food category. Johnson & Johnson was ordered to pay $572 million to the state of Oklahoma for its part in fueling the opioid crisis. J&J said it would appeal the decision, but the amount was far less than the $17 billion the stated had requested and also below what Wall Street analysts had been predicting. The decision is also helping boost other drugmakers which have manufactured opioids, including Teva Pharmaceutical , Endo International , and Mallinckrodt . Comcast – Wells Fargo resumed coverage of the NBCUniversal parent with an "outperform" rating, saying the Comcast story is more multi-dimensional than its cable peers. Drugmaker AstraZeneca was granted fast track approval status by the Food and Drug Administration, as it attempts to get the popular diabetes drug Farxiga approved for use in preventing heart and kidney failure for patients with chronic kidney disease. Taiwan Semiconductor was sued by contract chipmaker GlobalFoundries for patent infringement. GlobalFoundries is seeking to stop Taiwan Semi's customers – which include Apple – from importing affected products to the U.S. and Germany. Papa John's named Arby's President Rob Lynch as its new president and chief executive officer. He replaces Steve Ritchie, who took over as CEO last year after founder John Schnatter stepped down amid controversy over comments involving the NFL's national anthem controversy. Amazon's global treasurer Kurt Zumwalt has left the company after 15 years, according to people familiar with the matter who spoke to CNBC. Facebook is developing a new messaging app called "Threads", according to technology website The Verge. The app is designed to promote constant contact between users and their closest friends, and is seen as a threat to Snap's Snapchat. Farfetch – The online luxury fashion retailer issued a statement denying a New York Post report that said it was close to acquiring struggling clothing retailer Barneys New York. Tencent Music Entertainment – The music service is under investigation by Chinese antitrust authorities, according to Bloomberg. The probe could end exclusive music licensing deals that the company had struck with the world's biggest record labels. Zynga – Wedbush added the mobile game maker's stock to its "Best Ideas" list, saying that key titles and new releases could boost Wall Street's expectations for the company through 2021.

https://www.cnbc.com/2018/06/07/smucker-shares-plummet-on-weak-earnings-concern-about-tariffs.html

SJM

J.M. Smucker Company (The)

Smucker shares plummet on weak earnings, concern about tariffs

J.M. Smucker shares fell to levels not seen since October 2014 on Thursday after posting weaker-than-expected quarterly earnings and issuing full-year profit guidance that was well below estimates. The stock plummeted as much as 9 percent as the packaged-food company claimed "industry-wide headwinds" affected their earnings. Smucker shares were down 4.6 percent as of 11:09 a.m. ET and are down about 20 percent this year. The company said it earned $1.93 per share in its fiscal fourth quarter — below Street estimates of $2.18 per share. Sales of consumer foods, such as Crisco and Pillsbury, fell 2 percent in the quarter. Smucker has been dealing with issues related to price hikes for Jif peanut butter and Crisco cooking oil as well as higher freight costs. Smucker also said it expects full-year earnings per share to range between $8.40 and $8.65, falling short of a Reuters average estimate of $9.22. The name-brand company has been under pressure recently as Canada announced potential retaliatory tariffs on jam and other products, one of the company's most well-known products. Trade tensions between the U.S. and one of its partners under the North American Free Trade Agreement continue to escalate as President Donald Trump joins other members of the G-7 in Canada to discuss global economic goals this week.

https://www.cnbc.com/2021/04/19/coca-cola-will-raise-prices-to-offset-higher-commodity-costs.html

SJM

J.M. Smucker Company (The)

Coca-Cola CEO says company will raise prices to offset higher commodity costs

Coca-Cola will raise prices on its drinks to combat the impact of higher commodity costs, its CEO told CNBC on Monday. The beverage company joins a number of other consumer giants, such as Kimberly-Clark and J.M. Smucker , in hiking prices. While the move will help their profit margins, it may come at the expense of cash-strapped consumers who are still struggling from the economic impact of the coronavirus pandemic. "We are well-hedged in '21, but there's pressure built up for '22, and so there will have to be some price increases," CEO James Quincey told CNBC's Sara Eisen on "Squawk on the Street." "We intend to manage those intelligently, thinking through the way we use package sizes and really optimize the price points for consumers," he added. Throughout the crisis, Coke shifted its production to focus on larger bulk packaging to appeal to consumers who were spending more time at home and stocking up at the grocery store. But before the pandemic, Coke and its rival PepsiCo had been pushing smaller cans and bottles, which usually carry a higher price per ounce for the consumer and are more profitable for the manufacturer. Pepsi executives said on Thursday that they expect smaller packaging to come back as the crisis subsides. Quincey did not reveal which Coke products would have higher price tags. The company last announced a price increase in 2018, citing the impact of aluminum tariffs under President Donald Trump's administration. Coke shares rose less than 1% in morning trading after the company reported its first-quarter results. Coke's earnings and revenue topped Wall Street estimates, and the company said demand in March reached pre-pandemic levels. However, executives emphasized that the company is seeing an uneven global recovery.

https://www.cnbc.com/2019/06/06/jm-smucker-forecasts-full-year-profit-above-estimates.html

SJM

J.M. Smucker Company (The)

JM Smucker forecasts full-year profit above estimates

Packages Dunkin' Donuts and Folgers coffee are displayed on a shelf at a grocery store in San Rafael, California. Packaged food maker J.M. Smucker forecast full-year profit above estimates and beat Wall Street expectations for quarterly earnings, boosted by demand for its coffee and pet foods, including brands Meow Mix and Nature's Recipe. The Orrvile, Ohio-based company has been spending on product launches as well as marketing and promotions for core businesses, while expanding its digital capabilities to boost revenue. Smucker forecast full-year adjusted earnings of $8.45 to $8.65 per share, well above analysts' expectations of $8.33. Sales in its U.S. retail pet foods business, the company's biggest revenue generator, jumped 35% in the quarter, driven by demand for Meow Mix and Nature's Recipe. Sales at its U.S retail coffee business, which houses Folgers, rose about 4%, powered by double-digit sales growth in Dunkin'- and Cafe Bustelo-branded coffees. Net income fell about 62% to $71.5 million, or 63 cents per share, in the fourth quarter ended April 30, as the company record an impairment charge. Excluding items, the company earned $2.08 per share, handily beating the average analyst estimate of $1.95 per share. Net sales rose 6.8% to $1.90 billion, but narrowly missed the average analyst estimate of $1.93 billion, according to IBES data from Refinitiv.

https://www.cnbc.com/2019/11/10/more-companies-are-flagging-wildfire-risk-as-suppression-costs-climb.html

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J.M. Smucker Company (The)

A rising number of US companies are flagging wildfire risk as suppression costs climb

California's biggest utilities aren't the only U.S. companies grappling with the increased force and frequency of wildfires. The number of S&P 500 firms flagging "wildfire" as a potential risk factor in annual reports has increased dramatically over the past decade — from 9 in all of 2010 to 37 so far in 2019 — according to a CNBC analysis. In just the past year, at least 14 companies in the S&P 500, including Marriott and Monster Beverage , have added wildfires to their basket of concerns in 10-K filings with the Securities and Exchange Commission. While many S&P 500 firms have included "fire" in the risk factor section of their 10-Ks, this analysis specifically accounts for "wildfire." California-based utilities PG&E and Edison International have drawn much of the spotlight since 2017 and, more recently, as the two companies proactively shut off power to vast portions of their service areas in October. But, in just the past couple of years, businesses across a range of industries have started to sound the alarm. Perhaps unsurprisingly, real estate companies make up the largest share — 10 of 37 — that have flagged wildfire risk in 10-K filings this year. But concerns are spread across sectors from banking to biotech to semiconductors. Those proliferating worries are reflected in the data. Ten of the 20 most destructive U.S. wildfires since 1923 have ignited in the last five years. S&P 500 companies noting "wildfire" as a risk in their annual 10-K filings A number of these companies have added wildfires to a burgeoning list of natural disaster threats, which include earthquakes and tornadoes. Orville, Ohio-based consumer giant J.M. Smucker , for instance, had flagged the risk of tornadoes to its production facilities in Kansas and Alabama in 2018. But, this year, the consumer giant added a new line on California wildfire. Other firms have been more explicit in their warnings. In its latest 10-K filing, Houston, Texas-based power infrastructure company Quanta Services warned investors that its current insurance coverage might not sufficiently account for wildfire risk. "Should our insurers determine to exclude coverage for wildfires in the future, due to the increased risk of such events in certain geographies or otherwise, we could be exposed to significant liabilities and a potential disruption of our operations," Quanta Services executives said. "If our risk exposure increases as a result of adverse changes in our insurance coverage, we could be subject to increased claims and liabilities that could negatively affect our business, financial condition, results of operations and cash flows. Redwood City, California-based data center firm Equinix , meanwhile, has directly cited PG&E as it works to confront the surging wildfire threat. In January, PG&E filed for bankruptcy protection, saying it's facing more than $30 billion in liabilities after it was determined that its power lines sparked last year's devastating Camp Fire. The fire, the deadliest in California's history, killed 86 people and left 30,000 homeless. The power company was also deemed responsible for 12 of the fires that tore through Northern California in October 2017, according to state officials. While PG&E has said it will honor $42 billion in existing power agreements as a part of its plan to restructure and ultimately emerge from bankruptcy, escalating wildfire threats introduce further uncertainty for businesses across a swath of industries that rely on the utility. On Thursday, PG&E reported $1.6 billion in losses last quarter as it faces increased pressure from state and local officials. "If PG&E seeks and is allowed to reject power agreements, it is difficult to predict the consequences of any such action for us," Equinix executives said in their latest 10-K filing. "But they could potentially include procuring electricity from more expensive sources, reducing the availability and reliability of electricity supplied to our facilities and relying on a larger percentage of electricity generated by fossil fuels, any of which could reduce supplies of electricity available to our operations or increase our costs of electricity." But Equinix isn't alone, and executives at a slew of companies — ranging from Comcast to Ulta Beauty to Corona brewer Constellation Brands — are closely monitoring probes into the spate of wildfires that have ravaged California since mid-October. At one point, 16 were burning across the state. As of Friday, all but one were fully contained, according to the California Department of Forestry and Fire Protection. Local and state officials lifted all mandatory evacuation orders this past week but investigations are ongoing.

https://www.cnbc.com/select/best-umbrella-insurance/

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J.M. Smucker Company (The)

Umbrella insurance could help protect you if you're sued — here are the best companies offering it

While never required by law, umbrella insurance can be incredibly valuable for individuals and business owners with a lot of assets or those with a significant risk of being sued. This can include households with dogs that might bite, swimming pools that could cause accidents and teenage drivers who pose higher risks. Umbrella insurance provides additional coverage beyond your underlying insurance policies, like auto and homeowners insurance. It can protect you financially from bodily injury and property damage liability claims, as well as legal expenses beyond your usual insurance limits if you find yourself in a lawsuit. For example, if you're involved in an auto accident that causes $500,000 worth of bodily injury damages, but your auto insurance policy has a $300,000 limit for these types of damages, an umbrella insurance policy would cover the remaining $200,000. Otherwise, your savings and future earnings could be used to cover the difference. Here, CNBC Select rounds up the best umbrella insurance providers based on availability, customer satisfaction and maximum limits. (See our methodology for more information on how we made this list.) Best umbrella insurance Best overall Travelers Umbrella Insurance Learn More Cost The best way to estimate your costs is to request a quote Maximum coverage $10 million App available Yes Policy highlights A Travelers Umbrella Insurance policy comes with all of the protection you need, covering you at home and abroad. These umbrella policies include coverage for libel, slander, and defamation of character, and legal defense costs. Pros High enough coverage options for most typical families High ratings for customer satisfaction Cons Quotes and purchasing not available online Learn More View More Who's this for? Travelers can be a good fit for many families and business owners, with $1 to $10 million in umbrella insurance coverage available. It can also help provide coverage for liabilities that happen outside of the U.S. Standout benefits: Travelers is highly rated for its underlying policies, homeowners insurance and auto insurance, earning high rankings from J.D. Power for both types of insurance. Additionally, a below-average complaint index helps Travelers stand out. [ Jump to more details ] American Family Umbrella Insurance Learn More Cost The best way to estimate your costs is to request a quote Maximum coverage Undisclosed App available Yes Policy highlights American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It's also highly rated for auto and home insurance. Pros Wide variety of coverage options available. Cons Not available in all 50 states. Learn More View More Who's this for? American Family has strong options for auto and homeowners insurance in addition to umbrella insurance. American Family also offers a unique umbrella insurance policy for those with a farm or ranch. Standout benefits: American Family's umbrella insurance offers an opportunity to bundle coverage, making it a top choice for those who want simplicity. [ Jump to more details ] Best for high-net-worth families Chubb Masterpiece Excess Liability Insurance Learn More Cost The best way to estimate your costs is to request a quote Maximum coverage $100 million App available Yes Policy highlights Chubb's Excess Liability Insurance offers high coverage limits with a strong track record of customer service and satisfaction. It offers coverage worldwide and at home, and includes defense costs and legal counsel in lawsuits. Pros High coverage limits Strong scores for customer satisfaction Cons Quotes and purchasing not available online Learn More View More Who's this for? Chubb's excess liability insurance is a strong choice for those with lots of assets to protect. It stands out for those who employ staff in their homes, as Chubb provides liability coverage related to employment practices for residential staff. Standout benefits: With up to $100 million in coverage available, Chubb is a top choice for those who may need more than the typical $10 million limit available through other umbrella insurance policies. It covers defense costs for most lawsuits and extends coverage worldwide. [ Jump to more details ] Best for military families USAA Umbrella Insurance Learn More Cost The best way to estimate your costs is to request a quote Maximum coverage $5 million App available Yes Policy highlights While only available to military members, veterans and their families, USAA's Umbrella Insurance could be a good fit for those eligible who already have auto insurance policies through the company (carrying an auto policy is a requirement for this umbrella insurance). Its auto and homeowners insurance offerings are highly rated for customer claims satisfaction. Pros Auto insurance through USAA is required, but other insurance companies may be used for other coverages. High ratings for customer satisfaction Cons Only available to military members and their families Learn More View More Who's this for? USAA umbrella insurance is only available to those who have served in the U.S. military and their families. However, those who are eligible may find that USAA's coverage stands out in terms of customer service. Standout benefits: USAA is consistently one of our top picks for auto insurance, which anyone getting umbrella insurance will need to get through the company (except for in New York, Pennsylvania or Hawaii). [ Jump to more details ] More on our top umbrella insurance companies Travelers Travelers has been in the insurance business for more than 165 years and continues to be highly rated for customer satisfaction and financial strength. It boasts an A++ financial strength rating by AM Best. Types of umbrella insurance available Personal and commercial NAIC complaint index (Average is 1) 0.79, lower than expected Policy requirements Not disclosed [ Return to summary ] American Family American Family has been insuring families for 90 years, garnering a reputation for strong coverage and excellent customer service. Types of umbrella insurance available Personal, commercial, farm and ranch NAIC complaint index (Average is 1) 0.79, lower than expected Policy requirements Not specified [ Return to summary ] Chubb Chubb has been named one of CNBC Select's top picks for high-net-worth families for homeowners insurance, flood insurance and jewelry insurance. That's for good reason — the company has consistently high marks for customer service and satisfaction. Chubb is also rated highly for financial strength by AM Best. Types of umbrella insurance available Personal and commercial NAIC complaint index (Average is 1) 0.24, lower than expected Policy requirements Not disclosed [ Return to summary ] USAA USAA is consistently a top contender in the insurance space, despite only being available to those who are currently serving in the military, veterans and their families. Its homeowners insurance and auto insurance have both been highly rated for customer satisfaction by J.D. Power. Types of umbrella insurance available Personal and commercial NAIC complaint index (Average is 1) 1.79, higher than average Policy requirements Requires auto insurance policy, minimum limits on auto, homeowners and other types of insurance apply [ Return to summary ] FAQs What does umbrella insurance cover? Umbrella insurance can add to your liability coverage, going beyond the limits of your auto insurance, homeowners insurance or other policies and help if you're facing a lawsuit for unintentional damages. It can provide coverage for legal defense costs that you'd otherwise be on the hook for, including things like attorney fees. Who needs umbrella insurance? Anyone with assets to protect from legal rulings could benefit from umbrella insurance. Some situations could put you at higher risk of a lawsuit, including: Owning a pool or trampoline Frequently having guests or hosting parties Volunteering or coaching children's sports Having young drivers Being a landlord If you find yourself in one of these positions, having umbrella insurance could provide some peace of mind. What is not covered by umbrella insurance? Since umbrella insurance is designed to cover damages to others, it won't cover your property or belongings. Umbrella insurance also won't cover intentional acts. Under a personal umbrella insurance policy, business damages or property won't be covered. Generally, this includes businesses operated out of your home. How much umbrella insurance do I need? Generally, umbrella insurance coverage should equal your taxable assets, including things like investments, homes beyond your primary residence and other assets. Bottom line Umbrella insurance can help cover costs beyond the liability limits of your auto, homeowners or other insurance to protect your assets if you're found responsible for damages to others. For the best umbrella insurance coverage, consider the underlying policy requirements, the quality of those underlying policies, the company's financial strength, and any specific features you may need. Subscribe to the CNBC Select Newsletter! Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. Why trust CNBC Select? At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best umbrella insurance companies, we compiled over 100 data points on more than a dozen insurance companies offering umbrella insurance policies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best umbrella insurance companies. Our methodology Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

https://www.cnbc.com/2023/12/11/stocks-making-the-biggest-moves-premarket-ci-m-snap.html

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Snap-on

Stocks making the biggest moves premarket: Cigna, Macy's, Snap and more

Check out the companies making headlines before the bell. Occidental Petroleum — Shares dipped 1.1% after Occidental Petroleum agreed to buy privately held energy producer CrownRock for $12 billion, and also announced that it's raising its quarterly dividend to 22 cents a share from 18 cents a share. Pinterest — The stock rallied 3.3% after RBC upgraded Pinterest to outperform from sector perform. Analysts said Pinterest is a way to play the shift of internet-based ad platforms chasing the $241 billion in advertising spending in impulse shopping. Macy's — The retailer popped 16% after reports that the company received a buyout offer . People familiar with the matter told CNBC on Sunday that two investment firms have offered to buy Macy's for $5.8 billion, or $21 per share. The Wall Street Journal first reported the buyout offer. Nordstrom , Kohl's — Shares of both companies jumped roughly 3.7%, boosted by news of the Macy's buyout offer. Nike — The footwear manufacturer's stock gained 1.6% after Citi upgraded it to buy from neutral on optimism the company will be able to protect its earnings per share despite a choppy macroeconomic environment. Analyst Paul Lejuez's new price target suggests more than 16% potential upside. Barclays also reiterated its bullishness for the stock. Cigna , Humana — Cigna's stock popped 13.9% after the health insurer abandoned its attempt to negotiate an acquisition of rival company Humana, which added more than 2.1% in early morning trading. The deal talks ended after the pair failed to agree on price. Best Buy — Shares rose 2% after Jefferies upgraded the retail stock to buy from hold, saying the "replacement cycle" for pandemic purchases will start up soon. Its new price target implies 20% upside from Friday's close. Snap — The stock jumped 4.7% after Wells Fargo upgraded shares to overweight from equal weight, saying the company's ad platform rebuilding efforts will lead to outperformance. — CNBC's Jesse Pound, Lisa Kalai Han, Sarah Min and Michelle Fox Theobald contributed reporting.

https://www.cnbc.com/2023/10/06/snap-ai-chatbot-privacy.html

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Snap-on

Snap AI chatbot investigation launched in UK over teen-privacy concerns

Snap is under investigation in the U.K. over potential privacy risks associated with the company's generative artificial intelligence chatbot. The Information Commissioner's Office (ICO), the country's data protection regulator, issued a preliminary enforcement notice Friday, alleging risks the chatbot, My AI, may pose to Snapchat users, particularly 13-year-olds to 17-year-olds. "The provisional findings of our investigation suggest a worrying failure by Snap to adequately identify and assess the privacy risks to children and other users before launching 'My AI'," Information Commissioner John Edwards said in the release. The findings are not yet conclusive and Snap will have an opportunity to address the provisional concerns before a final decision. If the ICO's provisional findings result in an enforcement notice, Snap may have to stop offering the AI chatbot to U.K. users until it fixes the privacy concerns. "We are closely reviewing the ICO's provisional decision. Like the ICO, we are committed to protecting the privacy of our users," a Snap spokesperson told CNBC in an email. "In line with our standard approach to product development, My AI went through a robust legal and privacy review process before being made publicly available." The tech company said it will continue working with the ICO to ensure the organization is comfortable with Snap's risk-assessment procedures. The AI chatbot, which runs on OpenAI's ChatGPT, has features that alert parents if their children have been using the chatbot. Snap says it also has general guidelines for its bots to follow to refrain from offensive comments. The ICO did not provide additional comment, citing the provisional nature of the findings. The agency previously issued a "Guidance on AI and data protection" and followed up with a general notice in April listing questions developers and users should ask about AI. Snap's AI chatbot has faced scrutiny since its debut earlier this year over inappropriate conversations, such as advising a 15-year-old how to hide the smell of alcohol and marijuana, according to The Washington Post. Snap said in its most recent earnings that more than 150 million people have used the AI bot. Other forms of generative AI have also faced criticism as recently as this week. Bing's image-creating generative AI, for instance, has been used by extremist messaging board 4chan to create racist images, 404 reported.

https://www.cnbc.com/2023/12/06/stock-market-today-live-updates.html

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Snap-on

Nasdaq closes 1% higher, Dow and S&P 500 snap 3-day losing streak: Live updates

Traders work on the floor at the New York Stock Exchange on Dec. 7, 2023. Stocks rose Thursday, allowing the Dow Jones Industrial Average and S&P 500 to break three-day losing streaks as Friday's all-important jobs report loomed. The broad S&P 500 climbed 0.80% to 4,585.59, while the blue-chip Dow added 62.95 points, or 0.17%, to 36,117.38. The Nasdaq Composite advanced 1.37% to 14,339.99 as technology stocks outperformed. Google-parent Alphabet gained more than 5% as traders cheered the company's launch of its Gemini artificial intelligence model. Nvidia and AMD also added more than 2% and 9%, respectively. The Nasdaq has also outperformed over the course of the week, gaining about 0.2%. The Dow and S&P 500 are on pace to finish the week lower by around 0.4% and 0.2%, respectively. Thursday's gains snapped the first three-day negative streaks since October for the Dow and S&P 500. Those losses had raised concerns around if the late-2023 rally was stalling. The three major indexes still remain poised to finish the fourth quarter and calendar year higher, underscoring the strength of the rally seen earlier. The job market has been a focus of investors this week amid a series of mixed data releases. Weekly jobless claims released Thursday were below economist expectations and a reading of continuing jobless claims declined, indicating that the pace of layoffs hasn't increased. The U.S. 10-year Treasury yield initially popped on the back of the figures, reflecting concerns around the strength of the labor market despite the Federal Reserve's efforts to tame inflation. The yield was last up nearly 3 basis points at 4.148%. Private payrolls data issued on Wednesday showed that employers added fewer positions than economists forecasted. Meanwhile, the volume of job openings in October fell to its lowest level since March 2021, according to Labor Department data released Tuesday. It left traders with a confusing picture ahead of the main event: Friday's official jobs report. Economists polled by Dow Jones expect that 190,000 jobs were added in November, a step up from the prior month. Investors are hoping for signs of cooling in the labor market, leaving the Federal Reserve comfortable with its decision to halt interest rate hikes. "The market has more than likely gotten ahead of itself in forecasting rate cuts for early next year," said Alex McGrath, chief investment officer at NorthEnd Private Wealth. "The jobs number tomorrow could dump an ice bath on sentiment."

https://www.cnbc.com/2023/12/29/oil-prices-end-year-10percent-lower-as-demand-concerns-snap-winning-streak.html

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Snap-on

Oil prices to end year 10% lower as demand concerns snap winning streak

Oil prices are set to end 2023 about 10% lower, the first annual decline in two years, after geopolitical concerns, production cuts and global measures to rein in inflation triggered wild fluctuations in prices. Brent crude futures were up 44 cents, or 0.6%, at $77.59 a barrel on Friday, the last trading day of 2023, while the U.S. West Texas Intermediate (WTI) crude futures were trading 27 cents, or 0.4% higher, at $72.04. On Friday, oil prices stabilised after falling 3% the previous day as more shipping firms prepared to transit the Red Sea route. Major firms had stopped using Red Sea routes after Yemen's Houthi militant group began targeting vessels. Still, both benchmarks are on track to close at the lowest year-end levels since 2020, when the pandemic battered demand and sent prices nosediving. Production cuts by the OPEC+ have proved insufficient to prop up prices, with the benchmarks declining nearly 20% from their highest level this year. Oil's weak year-end performance contrasts with global equities, which are on track to end 2023 higher. The MSCI equity index, which tracks shares in 47 countries, is up about 20% from the beginning of the year, as investors ramp up bets on rapid-fire rate cuts from the U.S. Federal Reserve next year. In the currency market, the dollar was rooted on the back foot and headed for a 2% decline this year after two years of strong gains. The expected interest rate cuts, which could reduce consumer borrowing costs in major consuming regions, and a weaker dollar, which makes oil less expensive for foreign purchasers, could boost demand in 2024, industry officials say. A Reuters survey of 30 economists and analysts forecasts Brent crude to average $84.43 a barrel in 2024, compared with an average of around $80 a barrel this year and the highs of over $100 in 2022 after Russia's invasion of Ukraine.

https://www.cnbc.com/2023/12/19/the-top-wall-street-stocks-on-tuesday.html

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Snap-on

Here are Tuesday's biggest analyst calls: Nvidia, Amazon, Snap, Meta, Adobe, Microsoft, Sunrun and more

Here are the biggest calls on Wall Street on Tuesday: TD Cowen names First Solar a top pick TD Cowen says the solar company is a top idea in 2024. "Within solar, we continue to favor utility over residential, which faces demand headwinds, elevated channel inventory, and high interest rates along with NEM 3.0 [net energy metering] implementation in the U.S. Top ideas are FSLR and SHLS for utility solar." JPMorgan downgrades Pepsi to neutral from overweight JPMorgan said nothing is wrong with the stock, but that the bank sees better value elsewhere. "We don't see anything fundamentally wrong with PEP and continue to have confidence that the company is well positioned to deliver on its 2024 outlook that points to the high-end of its LT financial algorithm…" Baird names Amazon a top 2024 pick Baird named the e-commerce giant a top idea in 2024. "Our top e-commerce sector pick is AMZN , although we note a range of attractive investments across market caps and profiles." Wells Fargo upgrades Rockwell Automation to overweight from equal weight Wells Fargo said the automation company, which also supplies software services for supply chain management, is a "mid cycle winner." "Historically, ROK shares have performed well relative to our group in mid-cycle settings." UBS names Meta a top 2024 pick UBS said Meta is a top idea in 2024. "This remains one of our top Buys in the megacap U.S. Internet space, trading at just 14.7x our base case '25 GAAP EPS of $22.70 and 13.5x our upside-case '25E EPS of $24.61 and we think EPS consensus for '25 at $17.54 looks low." Barclays upgrades Adobe to overweight from equal weight Barclays upgraded the stock after the U.K. and EU put up regulatory hurdles blocking Adobe's planned acquisition of Figma. "We are upgrading Adobe to OW from EW following the news that the two companies will no longer pursue the deal." TD Cowen reiterates Nike as outperform TD Cowen is standing by its outperform rating on the stock. "The setup for NKE in Q2 starts from an inventory base that is much more aligned, down -10% y/y at the end of fiscal Q1 but includes very difficult top-line comparisons in North America and EMEA." Citi opens a positive catalyst watch on Pfizer Citi said Pfizer is setting itself up to beat on guidance. The firm maintained its long-term neutral rating. "We are opening a catalyst watch today on Neutral rated Pfizer following last week's guidance downgrade." Oppenheimer names Microsoft a top pick Oppenheimer said it likes Microsoft as a top pick for 2024. "We like Microsoft to leverage their Generative AI (GAI) offerings to drive incremental revenue growth and ultimately hit our $410 PT next year." BMO upgrades Amgen to outperform from market perform BMO said in its upgrade of Amgen that it offers a means of playing "obesity [treatments] at a reasonable price." "We are upgrading shares of Amgen to Outperform and increasing our target to $326 from $286 based on: budding oral and injectable metabolic pipeline gives investors the opportunity to play in the obesity metabolic space without the same premium as peers." Jefferies initiates Chewy as buy Jefferies said it sees a compelling risk/reward for Chewy. "Pet ecommerce pure-play with several growth & margin levers at its disposal. Pet health, ads biz, and automation are near-term drivers, but wide goalposts and ongoing cost pressures create a fluid timeline." Telsey names TJX Companies a top pick Telsey said TJX is one of the firm's top ideas heading into 2024. "We continue to like TJX in the group as we view the company's value-oriented offering for the family and home in off-mall locations, and its ability to attract shoppers across a wide span of incomes, as well-positioned to deliver ongoing earnings growth." Jefferies initiates Elanco as buy Jefferies said in its initiation of Elanco that the pet health company has momentum in 2024. "We are initiating at Buy w/ a $17 PT, given our belief that the past trend of mixed performance is inflecting, and we expect the recent 3Q momentum to continue in '24 as investments in R & D begin to bear fruit via innovative launches." Piper Sandler downgrades Plug Power to underweight from neutral Piper Sandler downgraded Plug Power due to its ongoing "financial risk." "We also downgrade PLUG to Underweight given financing risk." Piper Sandler upgrades Sunrun and Sunnova to overweight from neutral Piper Sandler said it's bullish on residential solar heading into 2024. "We view the resi installers as the largest/immediate beneficiaries of lower rates. RUN / NOVA to OW on declining cost of capital." Piper Sandler initiates Nextracker as overweight Piper Sandler called the solar tracking solutions company a market share gainer. "Finally, we believe the trend in NXT's customer deposits indicate it is growing market share." KeyBanc reiterates Uber as overweight KeyBanc says Uber represents "balanced growth between ride-sharing and delivery." "We believe Uber's scale should translate to a healthy balance between gross bookings and EBITDA growth in 4Q23E-2025E." JPMorgan names Eli Lilly a top pick JPMorgan said Eli Lilly is one of the firm's top ideas for 2024. "While shares trade at a significant premium to peers, we see LLY compounding 20%+ EPS growth for the foreseeable future with the company's incretin franchise reaching $50bn by 2030 and continuing to grow from there." Deutsche Bank initiates Yum China as buy Deutsche Bank initiated coverage of the China fast-food holding company as a buy and said the stock's valuation is "undemanding." "We initiate coverage of YUMC with a Buy due to its visible margin growth amid pressures from local brands, and as the stock's valuation looks undemanding at 19x 2024E P/E on a 2024-26E recurring EPS CAGR of 13%." MoffettNathanson names Charter a top pick MoffettNathanson says the cable giant is a top idea in 2024. "We believe it is important to view Charter through the lens of free cash flow yield before their investments in rural expansion; that is, one should view their rural builds as if they are M & A, a use of excess free cash flow." BMO upgrades AIG to outperform from market perform BMO says the insurance company has upside. "We upgrade AIG one notch to Outperform. Our increased $83 target price implies ~26% NTM [next twelve months] upside and is equal to 1.26x 2025E adjusted book value (P & C stand-alone basis), discounted back." KeyBanc names Nvidia, Marvell and Micron top ideas KeyBanc said it likes stocks exposed to AI themes such as Nvidia , Marvell Technology and Micron. "From a stock positioning perspective, we recommend positioning in stocks that are further through the cycle and/or stocks that are exposed to key secular growth vectors, such as AI and thus favor NVDA, MRVL and MU." Morgan Stanley reiterates Macy's as equal weight Morgan Stanley raised its price target on the stock to $21 per share from $15. "Our REITs team's in-depth scenario analysis calculates M's real estate is worth $6-7B in a base case, & points to a ~$23 pro forma stock price, albeit with a wide $11-35 bear/bull range." Loop reiterates Snap as buy Loop raised its price target to $21 per share from $15 and said Snap is a generative AI "winner." "We are more confident in the turnaround in Snap's advertising business and increasingly view the company as a gen-AI winner."

https://www.cnbc.com/2024/01/25/stock-market-today-live-updates.html

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S&P 500 and Nasdaq fall Friday to snap six-day win streak, but both notch weekly gains: Live updates

NEW YORK, NEW YORK - JANUARY 22: Traders work on the floor of the New York Stock Exchange during afternoon trading on January 22, 2024 in New York City. The Dow Jones and S&P both hit all time highs with the Dow Jones closing over 38,000 points for the first time ever as stocks continue to rise. (Photo by Michael M. Santiago/Getty Images) The S&P 500 closed slightly lower Friday, but clinched weekly gains as the latest economic data added to a positive picture of the economy. The broad market index inched down by 0.07% to 4,890.97. The Nasdaq Composite slipped 0.36% to 15,455.36, hurt by a post-earnings slide in Intel . The Dow Jones Industrial Average bucked the trend by adding 60.30 points, or 0.16%, to 38,109.43, an all-time closing high. All three major averages are now up more than 100% from their pandemic lows. Despite Friday's mixed session, the major averages recorded a winning week. The S&P 500 advanced around 1.1%, while the technology-heavy Nasdaq Composite climbed about 0.9%. The blue-chip Dow gained approximately 0.7%. Friday's losses ended a six-day winning streak for the S&P 500 and Nasdaq. Through the end of Thursday's session, the benchmark S&P 500 had closed at a record high for five straight trading days, the longest streak of its kind since November 2021. Stocks got a boost this week from encouraging economic data. December's core personal consumption expenditures price index came in line with economists' forecasts month over month, but was slightly lower than anticipated on an annualized basis, data released Friday shows. It's a preferred gauge of inflation for the Federal Reserve, which sets monetary policy. Friday's PCE print came a day after gross domestic product data revealed higher-than-expected economic growth in the fourth quarter. That bolstered investors' hopes that the economy has avoided a deep recession. "All the economic data — both the GDP and PCE — was good this week," said Rhys Williams, chief strategist at Spouting Rock Asset Management. "That was comforting to everybody. And I think it does show we're still in this potential 'Goldilocks' landing, where the economy softens a bit but is still positive." But sell-offs among some well-known stocks on the back of earnings reports restricted gains this week. Chipmaker Intel tumbled nearly 12% on Friday after offering a disappointing fiscal first-quarter outlook. KLA slid more than 6% in the session after the semiconductor company posted light guidance for its fiscal third quarter. On the other hand, American Express rallied more than 7% after sharing a better-than-expected forecast for full-year earnings. That helped the 30-stock Dow mitigate losses from Intel's drop. Elsewhere, Tesla , a retail investor darling, registered its worst week since October, declining 13.6% in the period. Shares took a leg down after the electric vehicle maker posted disappointing earnings and warned of trouble in 2024.

https://www.cnbc.com/2023/12/18/top-stocks-to-watch-on-monday.html

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Here are Monday's biggest analyst calls: Nvidia, Netflix, Tesla, Amazon, Sunnova, Boeing, Snap, Salesforce and more

Here are Monday's biggest calls on Wall Street: Deutsche Bank downgrades Arm to hold from buy Deutsche Bank downgraded the stock mainly on valuation. "On our downgrade of ARM to a Hold rating (raising P/T to $70) as we believe the co's attractive growth potential and unique business model are fairly valued after its post IPO rally of nearly +40% leaves valuation at ~41x our CY25E EPS." Goldman Sachs downgrades SolarEdge to sell from neutral Goldman Sachs said in its downgrade of the stock that the recovery is still too soon. " SEDG (down to Sell): EU recovery still early innings and margin uncertainty leaves more downside risk to EPS." Goldman Sachs upgrades Sunnova to buy from neutral Goldman Sachs said in its upgrade of the solar company that the stock is near an inflection point. " NOVA (up to Buy): Resi recovery story with attractive end markets set to inflect faster (e.g. non-CA, Puerto Rico)." Guggenheim upgrades Snap to buy from neutral Guggenheim said the stock is "positioned for outperformance." "We are raising our rating on SNAP shares to BUY from NEUTRAL and our 2024 price target to $23 from $9, implying a 35% 12-month return." Goldman Sachs downgrades Nokia to neutral from buy Goldman Sachs said it sees "unfavorable vendor shifts" for Nokia. "We downgrade Nokia to Neutral (from Buy), given our lowered confidence in Nokia's product roadmap and competitive positioning following the recent announcement where AT & T stated that it no longer plans to use Nokia in its future wireless deployments as the carrier aims to switch to ORAN based networks." Wolfe upgrades Salesforce to outperform from peer perform Wolfe said it sees double-digit growth for Salesforce. "As a result, we are upgrading CRM to Outperform with a $315 PT which represents 25x CY25 EV/FCF (22.5x on our upside numbers) which we believe is appropriate for CRM's ability to grow top line by double digits and FCF per share ~20%." Jefferies upgrades Equifax to buy from hold Jefferies said the stock is underappreciated. "We upgrade EFX to Buy from Hold on what we believe to be underappreciated long-term dynamics." Bernstein reiterates Nvidia and Broadcom as outperform Bernstein said Nvidia and Broadcom remain the firm's favorite ideas in 2024. " AVGO is benefiting from a robust AI story that bridges a nearer-term core slowdown as well as significant VMware accretion on the way. And NVDA is still the best way to play AI, with numbers appear set to continue inflecting higher, and valuation that is becoming extremely attractive." JMP downgrades Shopify to market perform from market outperform JMP said in its downgrade of the stock that it's waiting for a more attractive valuation. "We downgrade Shopify to Market Perform from Market Outperform as shares are near our prior $80 price target, while our fine-tuned model now projects 2025 adjusted operating income to be 7% below consensus." Morgan Stanley downgrades Affirm to underweight from equal weight Morgan Stanley said in its downgrade of the fin tech company that Affirm's valuation is too tough right now. "After +79% appreciation over the last month and +383% YTD, risk-reward appears skewed to the downside at current levels even with pending strength through a seasonally strong holiday period. Valuation seems difficult to justify across all metrics." Evercore ISI names Amazon a top 2024 pick Evercore ISI says Amazon is well-positioned for 2024. "Global market share leader in both Retail & Cloud and now top 3 provider in Online Advertising." Seaport downgrades Roku to sell from neutral Seaport downgraded Roku mainly on valuation. "Downgrading to Sell from Neutral, $75 PT — Growth opportunities maturing, tough to justify valuation." Morgan Stanley downgrades Exelon to equal weight from overweight Morgan Stanley downgraded the utility company and said it sees too much uncertainty for Exelon. "With ~7% upside and regulatory/earnings uncertainty we are downgrading the stock to EW from OW." JPMorgan upgrades Prologis to overweight from neutral JPMorgan upgraded the real estate investment trust logistics company and said it likes its growth prospects. "We are raising our rating on PLD from Neutral to Overweight. Our more constructive stance on the stock is being driven by a variety of items tied to PLDs relative growth prospects." Barclays reiterates Tesla as equal weight Barclays says the stock faces many near-term challenges on fundamentals. "Overall, while we continue to see Tesla as a long-term winner in the global EV transition, we nevertheless believe the company is facing relative challenges on near-term fundamentals." Raymond James downgrades Palo Alto Networks to market perform from outperform Raymond James downgraded the stock mainly on valuation. "We are downgrading PANW to Market Perform from Outperform. Since May 2021, a period when PANW had underperformed peers, but our work suggested an upcoming period of broader platform sales with larger deal sizes that we thought would ultimately lead to a period of healthy growth and incremental profitability." Raymond James upgrades Check Point to outperform from market perform Raymond James said it sees an acceleration in growth for the software company. "We are upgrading CHKP to Outperform from Market Perform and introducing our 2025 estimates. While we understand investor skepticism regarding the longer term business trajectory, we continue to focus on the stock, and this tactical call is reminiscent of our call in Jan 2022 followed by our subsequent move in April 2023." Deutsche Bank names Charles Schwab and KKR as top ideas in 2024 Deutsche Bank said KKR and Charles Schwab are two of the firm's top ideas in 2024. "For calendar 2024, our top pick overall is KKR (KKR-Buy) within the alternative managers, followed by SCHW in the online brokers." Wells Fargo upgrades Progressive to overweight from equal weight Wells Fargo said the auto insurer is working on getting back to growth. " PGR saw PIF [policies in force] continue to decline sequentially in November as PGR is set on meeting its 96% combined ratio target for the year." JPMorgan upgrades Bank of New York Mellon to overweight from equal weight JPMorgan said the bank has an attractive valuation. "Hence US servicing deposits should see faster decline in rates with rate cuts which should benefit Bank of New York and State Street relatively more." BMO upgrades Tronox to outperform from market perform BMO said the stock is at an inflection point for the chemicals company. "We are raising TROX to OP with a $18 TP. We expect 2024 will mark the inflection point for TROX with the end of destocking and at least modestly improving demand for the industry and potentially more for Western producers." Deutsche Bank downgrades M & T Bank to hold from buy Deutsche Bank said it sees a lack of near-term catalysts for the bank. "We are downgrading MTB from BUY to HOLD given strong relative stock performance ytd (and in 2022) and as further meaningful outperformance in the near/medium term seems unlikely." Morgan Stanley downgrades Liberty Formula One to equal weight from overweight Morgan Stanley said it's concerned about slowing broadcast revenue growth. "As a result, we are downgrading FWONK to EW as we see its premium multiple as less sustainable as the business likely slows and the market frets over the business's ability to continue to see strong broadcast revenue growth." JPMorgan names Fifth Third and PNC as top picks JPMorgan says PNC and Fifth Third are the firms' favorite ideas in 2024. "Relatively among our names, given the uncertainty about the economic outlook, we relatively prefer banks with better credit risk outlook such as PNC and Fifth Third. " Deutsche Bank reiterates Boeing as buy Deutsche Bank raised its price target on the stock to $320 per share from $270 and says the stock will grind higher. "Few large cap industrial stocks can match Boeing in its ability to move. In the four weeks since our upgrade, the stock has rallied 27% vs. ~7% for the XLI." Morgan Stanley reiterates Netflix as overweight Morgan Stanley raised its price target on the stock to $550 per share from $475 and said it's a "market leader." "Media's pivot to profitability is driving down streaming losses across the sector. It also benefits OW NFLX as market leader." Bank of America upgrades Royal Bank of Canada to buy from neutral Bank of America said the Canadian bank is best in class. "We upgrade our rating on Royal Bank of Canada-RY to Buy from Neutral, PO to $146 ($110 USD), implying 11% upside from current levels, plus 4.3% dividend yield. Strong execution, deal driven synergies and best-in-class ROE defensibility create a compelling risk/reward despite the macro uncertainties. HSBC initiates Thermo Fisher as buy HSBC said Thermo Fisher is well-positioned for robust growth. "With the potential for a cyclical recovery in the Life Science tools market and one of the better execution stories, we think the company is set for a return to high single-digit (7-8%) organic growth." HSBC initiates Teva as buy HSBC said the pharma company has "margin improvement." " Teva's increasing focus on innovative medicine is becoming the new driver for growth and margin improvement." HSBC initiates AppLovin as buy HSBC said the ad tech company is well-positioned. "We also initiate on mobile app marketing and monetizing platforms provider AppLovin (APP US) at Buy with a USD53.20 target price; as the market leader in mobile app install advertising with a lead in AI solutions, we think AppLovin is well positioned to benefit from the budding recovery of the segment."

https://www.cnbc.com/2024/01/22/stock-market-today-live-updates.html

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Dow closes nearly 100 points lower to snap 3-day win streak, dragged down by weak earnings: Live updates

A trader works on the floor at the New York Stock Exchange on Dec. 4, 2023. The Dow Jones Industrial Average fell Tuesday, pulling back from record-breaking highs as traders pored through the latest batch of corporate earnings. The blue-chip Dow slid 96.36 points, or 0.25%, to 37,905.45, retreating below the 38,000 level that was crossed for the first time on Monday. Tuesday's losses ended a three-day winning streak. The S&P 500 rose by 0.29% to 4,864.60, a fresh all-time closing high. The technology-heavy Nasdaq Composite advanced 0.43% to 15,425.94. The 30-stock Dow was pressured by an 11% decline in 3M following disappointing guidance. Johnson & Johnson fell 1.6% after reporting earnings. D.R. Horton dropped more than 9% after the homebuilder missed Wall Street's consensus forecast for per-share earnings. Lockheed Martin slipped more than 4% following a weak outlook for full-year earnings per share. On the other hand, United Airlines rose more than 5% after reporting strong fourth-quarter results. However, the airline operator said it expects a first-quarter loss from the grounding of Boeing 737 Max 9 airplanes, the model involved in the Alaska Airlines emergency earlier this month. Shares of other airline operators rose in tandem. Southwest Airlines climbed more than 3%, while American Airlines , Delta Air Lines and Alaska added more than 2%. Elsewhere, Verizon and Procter & Gamble helped mitigate losses for the Dow. The pair gained more than 6% and 4%, respectively, as investors bought in following the companies' financial reports. Those moves come after the S&P 500 officially entered a new bull market, topping its previous closing all-time high from January 2022. But investors are deliberating how long the gains can persist, especially as the rally this year has centered around technology stocks such as Nvidia , lacking broader participation. This month alone, Nvidia is up 20%. In contrast, the small-cap Russell 2000 is lower by more than 2%. "Investors definitely are taking a pause — doing some profit taking — on the heels of what was a really a two-year record high," said Greg Bassuk, CEO of AXS Investments, of Tuesday's moves. "That's counterbalancing the bullishness in the markets." Traders are also awaiting two key data economic data releases later in the week. The preliminary fourth-quarter gross domestic product figure is due Thursday, followed by the Commerce Department's closely-watched personal consumption expenditures price index for December on Friday. Investors will monitor Netflix earnings after the bell on Tuesday. Technology remains a focus later in the week, with IBM and Tesla slated for Wednesday and Intel expected Thursday. Outside of tech, results from American, Alaska and Southwest are also due Thursday. "Corporate earnings is going to be probably the most important thing we see this quarter other than what, ultimately, GDP and inflation looks like," said Alex McGrath, chief investment officer at NorthEnd Private Wealth. "I talked a lot last year about the health of the consumer. And I think that is going to be what comes most into focus at the first part of this year."

https://www.cnbc.com/2023/07/25/snap-reports-better-than-expected-results-but-issues-weak-forecast.html

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Snap shares plunge more than 17% on weak forecast

Snap shares tumbled over 17% after the company reported guidance for its current quarter that missed analysts' expectations. Here's how the company did: Loss per share : 2 cents vs. 4 cents expected by analysts, according to Refinitiv. : 2 cents vs. 4 cents expected by analysts, according to Refinitiv. Revenue : $1.07 billion vs. $1.05 billion expected, according to Refinitiv. : $1.07 billion vs. $1.05 billion expected, according to Refinitiv. Global Daily Active Users (DAUs) : 397 million vs. 394.9 million expected, according to StreetAccount. : 397 million vs. 394.9 million expected, according to StreetAccount. Average revenue per user: $2.69 vs. $2.68 expected, according to StreetAccount. Snap reported second-quarter results that topped analysts' estimates but provided a weaker-than-expected forecast for the current period. The company's overall sales in the second quarter declined 4% from the $1.11 billion it logged in the previous year during the same period. It's the second straight period of declining year-over-year revenue. The social messaging business managed to narrow its net loss by 11% to $377.3 million, or 24 cents per share, in its second quarter, which ended June 30, 2023, from $422.1 million, or 26 cents, during the year-earlier period. Snap also issued financial guidance for the third quarter that it says is "built on the assumption" that the company's daily active users will reach between 405 million and 406 million. As part of its guidance, Snap expects between $1.07 billion and $1.13 billion in total sales for the third quarter, which it said implies "negative 5% to flat year-over-year growth." Analysts were projecting Snap to report third-quarter sales of $1.13 billion along with 406 million daily active users in the same period. Last quarter, Snap did not provide official guidance for the second quarter, instead disclosing an "internal forecast" for revenue estimates in the time period. Like many tech companies, Snap initiated a major cost-cutting plan in 2022 that included laying off 20% of the company's overall workforce of 6,400 at the time. Because of these cuts, Snap wrote in a Tuesday letter to investors that its operating expenses shrank 8% year-over year in the second quarter, reaching $615 million. As of June 30, 2023, the company had 5,286 full-time workers, according to the letter. "We are excited by the progress we have made delivering increased return on investment for our advertising partners, growing our community to 397 million daily active users, and reaching more than 4 million Snapchat+ subscribers," Snap CEO Evan Spiegel said in a statement. Snap announced its Snapchat+ subscription plan in June 2022, pitching it as a way for users to access exclusive features and updates for a monthly fee of $3.99. Analysts are following Snap's earnings for any signs of a recovery in the digital advertising market, which could be experiencing a modest rebound, according to several industry surveys. A recent William Blair survey, for instance, noted that while the overall online advertising market "is still soft," the overall macro economy is "not as volatile, leading to a slow rebound in digital ad spend." Facebook parent Meta reports its second-quarter results on Wednesday, following the company's first quarterly increase in revenue after three straight periods of decline. At the time, Chief Financial Officer Susan Li said the company would still be experiencing "a volatile macro environment" for the rest of the year, in addition to a "challenging regulatory environment." Snap executives will address analysts and investors on an earnings call beginning at 5:30 p.m. ET. Watch: Ad revenue, cost-cutting and cloud will shape Google's earnings

https://www.cnbc.com/2023/11/30/wall-street-analysts-top-stocks-to-watch-on-thursday.html

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Here are Thursday's biggest analyst calls: Nvidia, Apple, Eli Lilly, Salesforce, Snowflake, Snap, Pinterest and more

Here are the biggest calls on Wall Street on Thursday: Berenberg reiterates Eli Lilly as buy Berenberg raised its price target on the stock to $680 per share from $600 and says the drugmaker is delivering for shareholders. "Eli Lilly (Lilly) has delivered the strongest share price performance in the global large pharma sector [year to date] but we think there are reasons to continue to buy this name into next year." Wells Fargo reiterates Nvidia as overweight Wells Fargo is standing by its overweight rating on the dominant artificial intelligence chipmaker after a meeting with company management. "While NVIDIA has quickly scaled supply thus far, it remains supply constrained and will take some time before equilibrium is reached; supply continuing to increase q/q into fiscal 2025." BTIG downgrades Farfetch to neutral from buy BTIG said in its downgrade that the shares are "unanalyzable." "We are downgrading shares of FTCH to Neutral from Buy. Given recent events, shares have become almost unanalyzable, in our opinion, and the unexpected possibility the JV with luxury conglomerate Richemont may not close introduces significant additional downside risk." Jefferies upgrades Pinterest and Snap to buy from hold Jefferies sees growth upside in 2024 for both stocks. " SNAP is our more controversial call where we believe the stock re-rates higher on North America revenue growth reaccelerating into the mid-teens in '24. Our PINS upgrade is based on increasing conviction in PINS's ability to grow rev 20%+ in FY24. The key risk to both upgrades is a macro slowdown weighing on ad budgets." Bernstein upgrades QSR to outperform from market perform Bernstein said in its upgrade of the owner of Burger King that it sees "value creation." "With fears of consumer spending slowdown, and pressures in the BK US system, investors have maintained a neutral stance on the stock over the past 6 months (-4%). Yet, with the momentum built up since the beginning of the year we now see a clearer path toward QSR' s LT value creation." Wolfe upgrades Ally Financial to outperform from peer perform Wolfe said in its upgrade of the financial company that it's well-positioned. "In an environment where the probability of a mild recession or soft landing both appear plausible, we believe ALLY is well positioned to outperform in either scenario and upgrade shares to Outperform." TD Cowen downgrades Okta to market perform from outperform TD Cowen downgraded the stock after its earnings report Wednesday. "We are downgrading OKTA to Market Perform from Outperform and lowering our price target to $74 from $100 following 3Q24 results that indicate a top-line deceleration heading into FY25." Stifel initiates Veralto as buy Stifel said in its initiation of the water tech company that it's bullish. "Through core offerings in water analytics, water treatment, marking and coding, and packaging and color, customers use Veralto solutions to help ensure the safety, quality, efficiency and reliability of their products, processes and people globally." Raymond James initiates Ecolab as outperform Raymond James said in its initiation of the water treatment company that it sees "incremental uplift to estimates." "When most of us think of water technology, what comes to mind are proverbial 'pipes and pumps' – a one-time sale. Ecolab's approach is different: as one of the leading players in water treatment chemicals, its revenue from the water value chain is nearly all recurring." UBS initiates Service Corporation as buy UBS said the funeral home company is a "shareholder-friendly compounder." "We believe SCI is in the midst of transitioning back to its historical pattern of delivering 8-12% EPS growth, post pandemic." Deutsche Bank initiates Lattice Semiconductor as buy Deutsche Bank said the semiconductor company is "reprogrammed for growth." "We see LSCC (~$8b market cap) as offering the rare combination of above-industry revenue growth alongside industry leading gross margins (second only to NVDA & AVGO)." Loop reiterates Apple as neutral Loop said in a note that it's uncertain if Apple has real plans for a "true medical device." "The trials and tribulations of the Blood Glucose Monitoring saga suggest AAPL's original plans for a true medical device are far from a certainty." JPMorgan downgrades Nokia to neutral from overweight JPMorgan said in its downgrade of Nokia that it's "difficult to stay bullish." "Nokia's restructuring will help 2H24 earnings but with initial indications of 1H24 to be so difficult, it is difficult to stay bullish despite the valuation, which is well below historic levels." JPMorgan upgrades STMicroelectronics to overweight from neutral JPMorgan said shares of the European semiconductor manufacturer are cheap. "Infineon stock was up on meeting expectations for the full year and thus if STMicro beats expectations, we would expect the stock to be up. Hence, we place the stock on positive Catalyst Watch for full year results expected on Jan. 26th." Morgan Stanley upgrades Hewlett Packard Enterprise to equal weight from underweight Morgan Stanley said in its upgrade of Hewlett Packard Enterprise that it sees an AI opportunity. "We would have liked more derisking of Intelligent Edge estimates heading into FY24, but given where we are in [the] hardware cycle, and the longer term AI opportunity, we see little opportunity for further multiple compression; Upgrade to EW." Barclays downgrades Bilibili to underweight from equal weight Barclays said in its downgrade of the China video website that it sees slowing growth. "Inline-ish Q3 results but weaker-than-expected Q4 revenue growth outlook now is compounding the challenges BILI has been dealing with to fix its long standing bloated cost structure. We are cutting estimates and lowering PT to $10." Jefferies initiates GE Healthcare as hold Jefferies said in its initiation of the stock that value is "fair" right now. "Post-spin, GEHC is a more focused company, led by strong franchises in its core markets. Mgmt is prioritising a shift to high-growth areas through internal/external investment, and we see runway for margin expansion, but view this as mostly baked in." Baird upgrades Spirit AeroSystems to outperform from neutral Baird said in its upgrade of the aerospace company that it's a "turnaround story." "New interim CEO, Pat Shanahan is wasting no time in tackling high-urgency problem areas within SPR, setting up 2024 as an execution year and improved financial performance. Revising the Airbus production contract is the likely next catalyst for SPR which is expected by February 2024." Wells Fargo downgrades Petco to equal weight from overweight Wells Fargo said in its downgrade of the pet product retailer that shares are in the "dog house" right now. " WOOF's Q3 update represents another disappointing shortfall, w/ comps/GM/EPS well below our model. Shares are justifiably lower and likely remain in the dog house considering ongoing discretionary headwinds & another round of negative EPS revisions." Bank of America reiterates Salesforce as buy Bank of America stood by its buy rating on the stock after earnings on Wednesday. "We continue to believe that Salesforce is on track to become the next quality [growth at a reasonable price] stock." Goldman Sachs reiterates Snowflake as buy Goldman Sachs stood by its buy rating on Snowflake after earnings on Wednesday. "Stabilizing Consumption Trends, Easing Optimization Headwinds Drive Beat and Raise, Augments Confidence in F25 Growth Outlook." Wells Fargo upgrades Duke Energy to overweight from equal weight Wells Fargo said in its upgrade of the utility that it sees a "return to form." "After a lengthy period of underwhelming EPS execution, DUK appears poised to reclaim its position as one of the premium names in the sector. Upgrade to OW. Increase PT to $103 (vs $94)—a 0-5% P/E multiple premium vs. peers (3-4% discount currently)." HSBC initiates Molson Coors as hold HSBC sees too much uncertainty for the alcohol and beverage company. "After a big volume jump in 2023, Molson Coors needs share gains, pricing, and innovation to generate sustained growth."

https://www.cnbc.com/2024/03/13/palantir-ceo-says-outspoken-pro-israel-views-led-employees-to-leave-.html

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Southern Company

Palantir CEO says his outspoken pro-Israel views have caused employees to leave company

In this article PLTR Follow your favorite stocks CREATE FREE ACCOUNT watch now Palantir CEO Alex Karp said some staffers at his software company have exited due to his public support for Israel. And he expects to see more walk out the door. "We've lost employees. I'm sure we'll lose employees," Karp said in an interview Wednesday with CNBC's "Money Movers." "If you have a position that does not cost you ever to lose an employee, it's not a position." Karp was responding to a question from anchor Sara Eisen about personnel turnover at the company resulting from its controversial stances. watch now Palantir, known for its government contract work in defense and intelligence, has provided its technology to support the Ukrainian and Israeli militaries in their respective wars. Israel has vowed to defeat Hamas following the Palestinian militant group's rampage on Oct. 7 in southern Israel that killed nearly 1,200 people. More than 30,000 people have been killed in Gaza since the war began, according to the Hamas-run Health Ministry there. Karp said on Palantir's earnings call last month he was "exceedingly proud that after Oct. 7, within weeks, we are on the ground and we are involved in operationally crucial operations in Israel." Palantir held its first board meeting of the year in Tel Aviv, Israel, in January, after which the company agreed to a "strategic partnership" with the Israeli Ministry of Defense to supply the country with technology for its military efforts. In November, Karp asserted the company's support of the U.S. government and Israel, declaring on an earnings call that "Palantir only supplies its products to Western allies." In Wednesday's interview, Karp reaffirmed his pro-Israel views. Eisen referenced the company's decision in October to take out a full-page ad in The New York Times, stating it "stands with Israel." Peter Thiel, co-founder and chairman of Palantir Technologies Inc., speaks during a news conference in Tokyo, Japan, on Monday, Nov. 18, 2019. Kiyoshi Ota | Bloomberg | Getty Images

https://www.cnbc.com/2023/08/03/european-travelers-are-seeking-new-destinations-as-summer-heat-sizzles.html

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Southern Company

Burned by the European heat, travelers are seeking new destinations this summer

In this article EXPE Follow your favorite stocks CREATE FREE ACCOUNT An unusual summer scorcher or a new normal? Some travelers aren't waiting to find out if this year's heat wave in southern Europe is an anomaly or part of a longer-term pattern caused by climate change. Tom Marchant, co-founder of the London-based luxury travel operator Black Tomato, told CNBC that his company has already seen a shift in interest from travelers hoping to avoid the searing summer heat. "We're seeing strong interest and desire to take advantage of the Scandi summer," he said. "Scandinavian destinations like Finland, Norway, Sweden, Iceland are seeing a pronounced rise from the sales front." 'Scandi summer' trend Interest in visiting the Mediterranean dropped by 10% from June to November this year, according to data published by the European Travel Commission. The summer of 2022 was Europe's hottest on record. On the flip side, summer bookings to Scandinavia are up 37% from last year, Marchant said, citing his company's data. "And we expect this will continue to climb," he said. watch now A "Scandi summer" trend is evident among summer home renters too, according to Expedia Group. German travelers, in particular, are shifting their vacation searches on Vrbo northward, with interest in southern Norway rising 35% in the first two weeks of July from the same period in June, according to Expedia Group. Company data also showed German interest in vacation homes went up in the Swedish southern counties of Skane and Blekinge. Elsewhere, vacation home searches from across Europe went up noticeably in: Edinburgh, Scotland — +20% Riga, Latvia — +25% Tallinn, Estonia — +25% Across Europe, home rental interest in the southern Swedish province of Smaland rivaled those in the popular Spanish island of Tenerife — and exceeded those in the Italian beach town of Rimini, according to Expedia Group. Shifts in Spain Spain is the most popular travel destination in the European Travel Commission's poll of more than 6,000 European travelers. But travel interest is shifting there as well, according to Expedia Group. Vacation home searches to popular spots like Costa Blanca, Costa Brava and Mallorca remained steady from June to July, according to company data, but home rental interest climbed across Spain's northern coast. Home searches went up in Costa Verde, Costa de Cantabria and the culinary powerhouse autonomous community known as the Basque Country, data showed. Alternatives to the Greek islands Temperatures have dropped since, but just last month, wildfires in Greece forced tens of thousands of people to be evacuated from the islands of Rhodes, Corfu and Evia — while some were still in their swimwear. Tourists wait in the airport during wildfire evacuations on the Greek island of Rhodes on July 23, 2023. Will Vassilopoulos | Afp | Getty Images The Greek islands are among Europe's top summer travel spots, but Marchant said some people are turning to another set of islands much farther north. "The Lofoten Islands in Norway are especially appealing to our clients with families as an ideal alternative to Greece and Croatian islands," he said, especially "for those who don't want the intense heat of the Med." Others are skipping island trips entirely, he said. "Destinations like Canada, U.S. National Parks and European hidden gems like Slovenia have also proven especially popular." Italy in the fall Summer may be synonymous with travel for many, but the threat of heat waves, wildfires, flooding and hurricanes are leading some to push their annual trips to other seasons. More people are choosing "shoulder season travel," which often has lower hotel rates, more availability and better temperatures, Marchant said. "In Italy's southern heel, Puglia and Sicily are performing strong, but especially in shoulder season, the fall," he said. "You will still have warm and sunny weather well into October given its close proximity to North Africa, but fewer crowds and a more laid-back experience." Trading beaches for mountains Because of rising summer temperatures in Europe, more people are seeking out higher elevations and mountainous terrains, Marchant said. "We're seeing renewed interest in the Dolomites, and the Swiss and Austrian Alps, in places like Lucerne and Solden," he said. A spring poll of more than 6,000 European travelers showed the No. 1 reason for choosing a travel destination was "pleasant weather conditions," according to the European Travel Commission. Now interest to travel to places like Lucerne, Switzerland in the summer is rising. Olyasolodenko | Istock | Getty Images Even countries that many travelers assume are unbearably hot have cool spots at higher altitudes, Marchant said. "Morocco is a great example," he said. Marrakech may be toasty in the summer, but the Atlas Mountains can be cooler — and even get brisk at night, he said. Plus, the summer is low season in Morocco, so it will be quieter and most likely of better value too, he added. Most soldiering on Travelers who have already made travel plans seem to be staying the course. Cynthia Nerangis, founder of LemonLime Travel, which specializes in travel to Greece, Italy and France, told CNBC Travel that her clients are sticking with their plans to visit Greece this summer — from Athens to the Cyclades and Crete. And bookings increased this year at the train, bus and flight booking company Omio, but cancellations remain low, said Peter Tomlinson, its vice president of data. "Despite extreme heat, wildfires and increased flight prices, Omio only saw a cancellation rate of 3% of tickets in southern Europe," Tomlinson told CNBC. A representative of the insurance company InsureMyTrip said it hasn't seen a noticeable uptick in calls or emails from customers wanting to change or cancel plans because of the heat. Similarly, Squaremouth, another travel company, said it hasn't heard from any travelers wanting to cancel, or make claims about, trips affected by the heat wave.

https://www.cnbc.com/2024/03/20/red-sea-crisis-may-lead-to-tanker-shortage-kuwait-petroleum-ceo-says-.html

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Southern Company

Red Sea crisis could lead to global tanker shortage, Kuwait Petroleum CEO says

Kuwait Petroleum Corporation Deputy Chairman & CEO Shaikh Nawaf Al-Sabah speaks during the CERAWeek oil summit in Houston, Texas, on March 19, 2024. Mark Felix | Afp | Getty Images HOUSTON — The crisis in the Red Sea could lead to a shortage in the global tanker fleet if disruptions persist for another six months, the CEO of Kuwait Petroleum Corporation told CNBC. Houthi militants have been striking commercial shipping in the Red Sea since November in support of Palestinians as Israel wages war in Gaza. The attacks have forced many container shipping and tanker companies to divert traffic around the Cape of Good Hope in southern Africa, adding time and cost. "One of the things I think we may be concerned about is if this continues for another six months, that we will not have perhaps the tanker fleet available to continue to go around," Shaikh Nawaf al-Sabah said of the global fleet during an interview at the CERAWeek by S&P Global energy conference. KPC has diverted a substantial amount of production around the Cape during the crisis, al-Sabah said, declining to provide specific numbers. The company is continuing to ship through the Red Sea and is making decisions on which route ships should take on a daily basis, he said. "We maintain a strategic tanker tanker fleet for these types of reasons," al-Sabah said. "We're comfortable that we can supply our customers in the quantities that are required on time without issue, but I don't know how many other producers have that strategic vision." Al-Sabah does not see a risk of Middle East tensions leading to a conflict that could disrupt crude supplies in the wider region. The Persian Gulf has faced numerous wars but the only time Kuwait has been unable to ship was during Iraq dictator Saddam Hussein's invasion of the country in 1990, he said. "I don't see a supply fear," the CEO said. "I am confident that the industry and the system is well equipped to handle potential supply crises that might happen." Chevron CEO Michael Wirth, however, said the security situation in the Middle East is "tenuous" and "could pivot on a dime." Wirth told CNBC that Chevron is "not moving ships to the Red Sea." "Today the conflict in Israel and Gaza goes on, a resolution does not seem to be at hand and the regional risks continue to be high," Wirth told CNBC's Brian Sullivan at CERAWeek China demand, U.S. production

https://www.cnbc.com/2024/03/15/chinese-ride-hailing-company-didi-global-must-face-us-investor-lawsuit-over-ipo.html

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Southern Company

Chinese ride-hailing company Didi Global must face U.S. investor lawsuit over IPO

Didi Global, the Chinese ride-hailing company, must face a lawsuit in a U.S. court claiming it defrauded investors by concealing and disobeying a Chinese government order to postpone its 2021 initial public offering until it resolved cybersecurity and privacy concerns. Didi Global, the Chinese ride-hailing company, must face a lawsuit in a U.S. court claiming it defrauded investors by concealing and disobeying a Chinese government order to postpone its 2021 initial public offering until it resolved cybersecurity and privacy concerns. In a 54-page decision on Thursday, U.S. District Judge Lewis Kaplan in Manhattan federal court said investors who brought the proposed class action sufficiently pleaded that Didi and various officials intended to defraud them in raising more than $4.4 billion in the June 30, 2021 IPO. The offering valued all of Didi at about $67.5 billion. Kaplan said the alleged desire to sell American depositary shares before a looming government crackdown on Chinese technology companies gave Didi and the officials a "concrete and personal economic motive" to go public before "the window for high valuation Chinese IPOs in the United States" closed. Lawyers for Didi did not immediately respond to requests for comment. The investors' lawyers did not immediately respond to similar requests.

https://www.cnbc.com/2023/08/29/norfolk-southern-says-tech-outage-to-impact-rail-operations.html

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Southern Company

Norfolk Southern says tech outage to impact rail operations for at least 2 weeks

Norfolk Southern said it has restored all rail systems after the U.S. railroad operator experienced a hardware-related outage that affected its operations earlier on Monday. All systems were restored at 7 p.m. ET, the company said, adding that it expects the impact on its operations to last at least a couple of weeks. There is no indication that the outage was a cybersecurity incident, Norfolk said, without disclosing further details. The company said it has been in touch with its customers to work on updated timings for their shipments. The U.S. Transportation Department's Federal Railroad Administration disclosed earlier this month that it is considering enforcement actions against Norfolk Southern, which has been under heavy fire after one of its freight trains carrying hazardous materials derailed in East Palestine, Ohio, spewing toxins into the air and water.

https://www.cnbc.com/2023/04/26/norfolk-southern-nsc-earnings-q1-2023.html

SO

Southern Company

Norfolk Southern reports $387 million charge for the first quarter after East Palestine derailment

General view of the site of the derailment of a train carrying hazardous waste, in East Palestine, Ohio, U.S., March 2, 2023. Norfolk Southern on Wednesday reported an initial $387 million charge associated with the company's East Palestine, Ohio, derailment in February, which spilled toxic chemicals into the environment. The charge resulted in a year-over-year decline in first-quarter profits, the rail company said. Norfolk Southern said income from railway operations for the quarter was $711 million, down 34% from the same period in 2022. Excluding the East Palestine derailment, income from railway operations was $1.1 billion, up 1% compared to the same period the year prior. Net income for the period fell to $466 million, or $2.04 a share, down from $703 million, or $2.93, a year earlier. That comes despite a year-over-year jump in revenue of roughly 7% to $3.13 billion. Here's how Norfolk Southern performed in the first quarter, compared with Refinitiv consensus estimates: EPS: $3.32, adjusted to exclude the impact of East Palestine, vs. $3.12 expected $3.32, adjusted to exclude the impact of East Palestine, vs. $3.12 expected Revenue: $3.13 billion, vs. $3.11 billion expected The earnings release reaffirmed Norfolk Southern CEO Alan Shaw's commitment to supporting cleanup efforts in Ohio, pledging roughly $24 million in reimbursements and investments. The National Transportation Safety Board is examining the company's organization and safety culture through a special probe into the company. Those environmental cleanup efforts and remediation activities contributed to the reported $387 million charge, according to company executives. The charge also included anticipated EPA-issued oversight costs to reimburse the government but does not include some anticipated legal costs related to cases such as a lawsuit brought by the state of Ohio, insurance recovery and recovery activities from other parties. "That's the accrual that we know of as of now, what we can identify. It could potentially change, there's no doubt about that, as we work with the Ohio AG and we work with the EPA," Shaw told CNBC's Morgan Brennan in an interview on "Closing Bell: Overtime" Wednesday. Shaw reiterated Wednesday plans to install additional sensors, accelerate the deployment of advanced early detection technology, and increase safety training for first responders. Norfolk Southern did not provide estimates for further charges related to the East Palestine derailment.

https://www.cnbc.com/2023/03/15/norfolk-southern-union-reach-paid-sick-leave-deal.html

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Southern Company

Norfolk Southern reaches new paid sick leave deal as it contends with derailment fallout

Norfolk Southern said Wednesday it agreed to provide up to seven paid sick days per years for members of the International Brotherhood of Boilermakers and Blacksmiths. The deal provides Norfolk Southern's mechanical railroaders with four paid sick days per year, in addition to three existing days of paid time off that can now be used as sick days. The IBBB is now the ninth of Norfolk Southern's 12 unions that have negotiated paid sick days, benefitting about 6,000 workers. The move comes after months of fighting between unions and railraods – including Norfolk Southern, Union Pacific and BNSF – over paid sick leave. President Joe Biden signed a bill at the end of 2022 to avert a nationwide rail strike. The legislation, however, did not include paid sick leave. Norfolk Southern announced the deal as the company contends with political and environmental fallout from a last month's derailment of a train carrying toxic materials in East Palestine, Ohio, near the Pennsylvania border. Company and government officials have said it's safe to live in the area following the disaster, although some workers and residents have complained of ailments. Ohio sued the company Tuesday. The paid sick leave agreement comes two days after Norfolk Southern reached deals with the Brotherhood of Railway Carmen and the International Association of Machinists and Aerospace Workers. Last week, the company announced agreements with the International Association of Sheet Metal, Air, Rail, Transportation Workers, Mechanical Department and the International Brotherhood of Electrical Workers. The company reached deals with two other unions in February, while two others already had access to paid sick leave benefits. "We continue to make strides to improve the quality of life of our craft railroaders in partnership with our unions," said Norfolk Southern CEO Alan Shaw. "Our railroaders help drive the American economy forward, and each of these new agreements helps ensure that they have even more time to manage their personal health and well-being." Norfolk Southern did not comment beyond its previously released statements. In February, Sens. Bernie Sanders, I-Vt., and Mike Braun, R-Ind., demanded railroad carriers offer workers at least seven paid sick days. Sanders urged rail companies to "do the right thing" while mentioning the carriers' record profits. Sanders' office said that rail companies spent 184% more on shareholder returns than workers' wages and benefits. "At the end of the day, in 2023, it is not acceptable to have workers that do dangerous work not to get one sick day," Sanders said at the time. –CNBC's Lori Ann LaRocco contributed to this report.

https://www.cnbc.com/2021/03/21/canadian-pacific-railway-to-buy-kansas-city-southern-for-25-billion-.html

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Southern Company

Canadian Pacific Railway to buy Kansas City Southern for $25 billion

Canadian Pacific Railway on Sunday said it has agreed to buy Kansas City Southern for $25 billion in a cash-and-shares deal to create the first rail network connecting the United States, Mexico, and Canada, betting on a pick-up in North American trade. Shareholders of Kansas City Southern will receive 0.489 of a Canadian Pacific share and $90 in cash for each KCS common share held, the companies said in a joint statement. The deal, which has an enterprise value of $29 billion including debt, values Kansas City Southern at $275 per share, representing a 23% premium to Friday's closing price of $224.16. The transaction is the biggest M&A launched in 2021. "The new competition we will inject into the North American transportation market cannot happen soon enough, as the new USMCA Trade Agreement among these three countries makes the efficient integration of the continent's supply chains more important than ever before," Canadian Pacific Chief Executive Keith Creel said in the statement. "This will create the first U.S.-Mexico-Canada railroad." The new and modernized U.S.-Mexico-Canada trade pact took effect in July last year, replacing the earlier deal that lasted 26 years, and is expected to further foster manufacturing and agriculture trade activities among the three countries. Kansas City Southern's board has approved the bid and the two companies have notified the U.S. Surface Transportation Board to seek the agency's required approval. Canadian railroad operators' attempts to buy U.S. rail companies have met limited success because of antitrust concerns. Creel will continue to serve as CEO of the combined company, which will be headquartered in Calgary, the statement said.

https://www.cnbc.com/2024/03/20/mainland-chinese-surge-into-hong-kong-property-after-stamp-duties-scrapped.html

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Southern Company

Mainland Chinese surge into Hong Kong property after stamp duties scrapped

After a pandemic-induced lull spanning more than three years, mainland Chinese are snapping up homes in Hong Kong, accounting for up to a third of new property sales weeks after the city removed all additional stamp duties on foreign buyers. After a pandemic-induced lull spanning more than three years, mainland Chinese are snapping up homes in Hong Kong, accounting for up to a third of new property sales weeks after the city removed all additional stamp duties on foreign buyers. The surge of mainland Chinese buyers into one of the world's most expensive housing markets — reported by several property agents and developers — comes amid battered confidence in the mainland's housing market due to a debt crisis and an uncertain economic outlook. Mainland Chinese now account for 20% to 30% of new home sales, according to estimates by realtors, with some buyers recently purchasing up to eight apartments at once. Hong Kong in late February removed all additional stamp duties, including those for purchases of second properties, as well as duties on those selling flats within two years of buying them. Foreigners, who had to pay 15% tax since October, from 30% previously, now pay around 4.25%, on par with locals. The reversal of what was deemed an unsuccessful government push during the 2010s to cool housing prices came after Hong Kong housing prices plunged more than 20% from their 2021 peak due to higher mortgage rates, an outflow of talent and a weak market outlook.

https://www.cnbc.com/2024/03/07/the-ai-industry-is-pushing-a-nuclear-power-revival-partly-to-fuel-itself.html

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Southern Company

The AI industry is pushing a nuclear power revival — partly to fuel itself

Tech firms and Silicon Valley billionaires have been pouring money into nuclear energy for years, pitching the sustainable power source as crucial to the green transition. Now they have another incentive to promote it: artificial intelligence. While generative AI has grown at lightning speed, nuclear power projects are heavily regulated and usually advance at a plodding pace. That's raising questions about whether advances in nuclear energy can cut emissions as swiftly as energy-guzzling AI and other fast-growing technologies are adding to them. "If you were to integrate large language models, GPT-style models into search engines, it's going to cost five times as much environmentally as standard search," said Sarah Myers West, managing director of the AI Now Institute, a research group focused on the social impacts of AI. At current growth rates, some new AI servers could soon gobble up more than 85 terawatt hours of electricity each year, researchers have estimated — more than some small nations' annual energy consumption. "I want to see innovation in this country," Myers West said. "I just want the scope of innovation to be determined beyond the incentive structures of these giant companies." Oklo is one of the nuclear startups backed by Sam Altman, the CEO of OpenAI who has described AI and cheap, green energy as mutually reinforcing essentials to achieving a future marked by "abundance." "Fundamentally today in the world, the two limiting commodities you see everywhere are intelligence, which we're trying to work on with AI, and energy," he told CNBC in 2021 after investing $375 million in Helion Energy, a nuclear fusion startup that Altman chairs. Microsoft last year agreed to buy power from Helion starting in 2028. Oklo, which Altman also chairs, is focused on the opposite reaction, fission, which generates energy by splitting an atom; fusion does so by merging atomic nuclei. Representatives for Altman, through his special acquisition company AltC, didn't respond to a request for comment. In rural southeastern Idaho, Oklo is working to build a small-scale nuclear powerhouse that could fuel data centers like the ones OpenAI and its competitors need. But the company also wants to supply mixed-use communities and industrial facilities, and is already contracted to build two commercial plants in southern Ohio. As the United States moves toward wide-scale electric vehicle adoption and decarbonization, "the amount of energy we're going to need to do that is huge," said Oklo CEO and co-founder Jacob DeWitte. "Also heating and cooking — if we want to electrify those processes, you're going to need even more." Oklo has found getting regulators on board harder than finding potential customers. In 2022, the federal Nuclear Regulatory Commission, which oversees commercial nuclear power plants and materials, denied the company's application for the design of its Idaho "Aurora" powerhouse, saying it hadn't provided enough safety information. In October, the Air Force rescinded its intent to award a contract for a microreactor pilot program to power a base in Alaska. "You've got new physics, you have to use new models. You have to do all sorts of stuff that's different than what they're used to," DeWitte said of the NRC. Oklo is now working to satisfy regulators, he said, acknowledging agency officials must "do their independent job of ensuring this meets adequate safety requirements." Oklo's proposed 13,000 square-foot Aurora powerhouse, featuring a 15-megawatt fission reactor, is smaller than earlier plants and looks more like a sleek ski chalet than the Cold War-era ones with their iconic curved towers. The plant set to be built at the Idaho National Laboratory, a research facility where Oklo has been given an Energy Department grant to test recycling nuclear waste into new fuel. DeWitte says the design is safer, too, citing the use of liquid metal as a coolant rather than water. The nuclear power industry hasn't meaningfully expanded its share of the U.S. energy mix for decades. It has chugged along despite popular opposition fueled by infrequent but devastating accidents like those in Chernobyl, Ukraine, in 1986 and in Fukushima, Japan, in 2011. But as the climate crisis accelerates, most Americans now support expanding nuclear energy — 57%, up from 43% in 2020, a Pew Research survey found last year. Nuclear power currently makes up only 19% of the nation's overall energy generation, with 93 commercial reactors operating today, down from a peak of 112 in 1990. By one estimate, up to 800 gigawatts of new nuclear power will be needed by 2050 to meet current green energy targets.

https://www.cnbc.com/2022/12/29/southwest-airlines-flight-cancellations.html

LUV

Southwest Airlines

Southwest Airlines says holiday meltdown will 'certainly' hit fourth-quarter results

In this article LUV Follow your favorite stocks CREATE FREE ACCOUNT watch now Southwest Airlines' holiday meltdown will "certainly" hit its fourth-quarter results, executives said Thursday, adding it will take several weeks to work through affected travelers' reimbursement requests. The systemwide chaos stranded hundreds of thousands of customers over the holiday week and drew scrutiny from Washington. The low-cost airline slashed schedules over the last several days, flying just about one-third of its planned flights, in a desperate effort to stabilize its operation and get planes and crews where they need to go. Southwest said it expects to operate a normal schedule on Friday. It's canceled 39 flights scheduled for Friday, according to FlightAware, down from more than 2,300 on Thursday. "We have all hands on deck and tested solutions in place to support the restored operation. I'm confident, but I'm also cautious," CEO Bob Jordan said in a staff memo Thursday. Travelers at Baltimore Washington International airport deal with the impact of Southwest Airlines canceling more than 12,000 flights around the Christmas holiday weekend across the country and in Baltimore, Maryland, December 27, 2022. Michael McCoy | Reuters The airline also resumed selling tickets for Friday, after a pause it implemented before it stabilized its schedule, said Jordan, a more than three-decade Southwest veteran who became CEO in February. Southwest's operation unraveled over the holiday week after brutal winter weather swept across the U.S. When most airlines had recovered at the end of last week, Southwest's problems worsened. Executives cited challenges including overloaded internal scheduling platforms crucial to getting crews matched with flights. Executives on Thursday vowed to improve crew scheduling platforms and said that modernization efforts were already underway but noted such projects take years. On a call with reporters on Thursday, Chief Commercial Officer Ryan Green said there "will certainly be an impact to the fourth quarter." But executives declined to provide an estimate of how much the disruptions will cost the airline in total. A similar incident in October 2021 cost the airline about $75 million, the carrier said last year, but this event lasted longer, with more travelers flying because of the holidays and sharply higher fares. The carrier previously said it expected quarterly revenue to rise as much as 17% over 2019, when it brought in close to $6 billion. 'Not much love'

https://www.cnbc.com/2024/01/21/how-spirit-airlines-shaky-future-could-make-american-travel-worse.html

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Southwest Airlines

How Spirit Airlines' uncertain future could add cost and stress to travel across America

Spirit Airlines airplanes at Fort Lauderdale-Hollywood International Airport (FLL) in Fort Lauderdale, Florida, US, on Tuesday, Oct. 24, 2023. Spirit Airlines Inc. is scheduled to release earnings figures on October 26. Photographer: Eva Marie Uzcategui/Bloomberg via Getty Images A federal judge's order blocking a $3.8 billion-dollar deal that would have JetBlue Airways purchase rival Spirit Airlines leaves Spirit with an uncertain future. But the ruling didn't just leave the airlines with uncertainty; it sent shudders through some of Spirit's key constituencies. Few places will feel the impact harder than the Arnold Palmer Regional Airport (LBE) if Spirit can't keep flying. About an hour east of downtown Pittsburgh in the city of Latrobe, Pennsylvania, the airport serves the gritty coal towns east of Pittsburgh but also lures in travelers from a three-state area with free parking, short TSA lines, and low fares from Spirit. The Arnold Palmer Regional Airport has almost all the amenities of any major airport, just on a smaller scale. There's a baggage claim, car rental counters, and DeNuzio's Chophouse to feed travelers while waiting for their flight. But all the travelers in the passenger area hold boarding passes for one airline: Spirit. That is because Spirit Airlines is the only commercial carrier to provide service to LBE. "Being that they are the only one, they are really important; it would be devastating if they would go belly up," said Gabe Monzo, executive director of the airport. Spirit has trimmed its schedule at LBE from several daily flights to one direct flight to Orlando. But Monzo says service will likely resume to Myrtle Beach in the spring. A 2022 study by the Pennsylvania Department of Transportation put the regional economic impact of arriving and departing passengers from LBE at $213.9 million. Monzo says $100 million of that is from Spirit Airlines travelers. Spirit's bargain-basement fare fliers LBE won't be the only one left in the lurch if Spirit can't find a path forward. Spirit Airlines fills a niche for leisure travelers, college students, missionaries, and others seeking bargain basement, no-frills fares. Professor Jase Ramsey, a Florida Gulf Coast University management professor in Fort Myers, has two stakes in Spirit Airlines: he uses the airline for family vacations from service at nearby Southwest Florida International Airport (RSW), and incorporates Spirit into his courses. From a family perspective, he said a Florida without Spirit hurts in two directions. Its absence from the market will likely raise prices for incoming tourists from the north. But it will also cut off affordable vacation options for South Florida families heading to the Caribbean. "This will be bad for our region if something happens to Spirit from a price perspective. They are usually our low-cost leader. If you want to do a family vacation out of here, that is your go-to airline," Ramsey said.

https://www.cnbc.com/2024/01/12/airline-stocks-tumble-after-delta-trims-profit-forecast.html

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Southwest Airlines

Airline stocks tumble after Delta trims profit forecast

Delta Air Lines shares slipped about 9% Friday after the company trimmed its 2024 earnings forecast. Delta forecast full-year earnings per share of $6 to $7, below its previous estimate of more than $7 per share for 2024. Other major airlines including United , American and Southwest also fell on the new estimate, released alongside quarterly earnings. United and American were down about 10% each, while Southwest fell more than 4%. Delta finished 2023 by doubling its quarterly profit as bookings, both for corporate and leisure travel, continued to pick up from the Covid-19 pandemic lows. The company reported $2.04 billion in net income in the fourth quarter, sharply up from the $828 million reported in the year-ago period. Delta CEO Ed Bastian said in a CNBC interview that the airline has recovered almost 90% of its travel demand from its pre-pandemic numbers. Bastian said he expects strong growth in international travel as Americans continue to set their sights on overseas destinations. "We expect to see an inflection point in the first part of this new year, in terms of our domestic unit revenues turning positive," Bastian said. Delta is coming off a strong 2023 where shares surged more than 20%, but the stock is still down from its all-time high of $63.16, notched in July 2019. The stock closed Friday at $38.47 per share. Don't miss these stories from CNBC PRO:

https://www.cnbc.com/2024/04/01/united-asks-pilots-to-take-unpaid-time-off-citing-boeing-delays.html

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Southwest Airlines

United asks pilots to take unpaid time off, citing Boeing's delayed aircraft

United Airlines is asking pilots to take unpaid time off next month, citing late-arriving aircraft from Boeing , according to a note sent to pilots. It's another example of how Boeing's customers say the manufacturer's production problems and safety crisis are impacting their growth plans. The offer comes after United and other airlines in recent years have clamored for more pilots when the Covid-19 pandemic travel slump ended and demand surged. "Due to recent changes to our Boeing deliveries, the remaining 2024 forecast block hours for United have been significantly reduced," the United chapter of the Air Line Pilots Association, the pilots' union, said in a note to members Friday. "While the delivery issues surround our 787 and 737 fleets, the impact will affect other fleets as well." United confirmed the request for voluntary, unpaid time off. The airline previously said it would pause pilot hiring this spring because of aircraft arriving late from Boeing, CNBC reported last month. The union said it expects United to offer more time off "for the summer bid periods and potentially into the fall." United was contracted to receive 43 Boeing 737 Max 8 planes and 34 Max 9 models this year, but now expects to receive 37 and 19, respectively, according to a company filing in February. It had expected Boeing would also hand over 80 Max 10s this year and 71 next year. That model hasn't yet been certified by the Federal Aviation Administration, and the airline removed them from the delivery schedule because it is "unable to accurately forecast the expected delivery period," it said in the filing. United CEO Scott Kirby has been among the most vocal about the production problems and delivery delays at Boeing, including most recently the crisis stemming from a door plug that blew out of a nearly new Boeing 737 Max 9 operated by an Alaska Airlines flight that was at about 16,000 feet. Other airlines bosses have also grown frustrated with the delivery delays resulting from Boeing's manufacturing issues. Southwest Airlines last month said it was reevaluating its 2024 financial guidance, citing fewer Boeing deliveries, and has paused pilot and flight attendant hiring, while Alaska Airlines said its 2024 capacity estimates are "in flux due to uncertainty around the timing of aircraft deliveries as a result of increased Federal Aviation Administration and Department of Justice scrutiny on Boeing and its operations." Boeing declined to comment. Boeing CEO Dave Calhoun last week announced he would leave at the end of the year as part of a broad leadership shake-up, which included the departures of the board chairman and the head of Boeing's commercial airplanes unit.

https://www.cnbc.com/2023/07/27/southwest-airlines-luv-q2-2023-earnings.html

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Southwest Airlines

Southwest Airlines shares tumble 9% as costs rise, unit revenue slips

Southwest Airlines Boeing 737-700 aircraft as seen landing at dusk time at Ronald Reagan Washington National Airport DCA in Arlington County, Virginia over the Potomac River in the United States of America flying over water and buildings. Southwest Airlines shares tumbled nearly 9% Thursday after the airline reported lower unit revenue and higher costs for the second quarter — and said the trends are likely to continue this quarter. The Dallas-based airline's second-quarter unit revenue dropped 8.3% from a year earlier, Southwest said, citing a policy change last summer that removed expiration dates from Covid pandemic travel credits. The carrier said it expects unit revenue to fall as much as 7% during the third quarter on capacity up 12% from a year earlier. It blamed "challenging comparisons from the pent-up travel demand surge in 2022, and higher than seasonally-normal growth." Airlines have enjoyed record revenue in recent months, but airfare in the U.S. has dropped from 2022, according to the latest inflation read. Southwest said it is "revamping" 2024 schedules to reflect changing customer demand as business travel revenue recovers but lags pre-pandemic levels. "We are working to align our network, fleet plans, and staffing to better reflect the current business environment," CEO Bob Jordan said in an earnings release.

https://www.cnbc.com/2024/01/25/american-airlines-aal-q4-2023-earnings.html

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Southwest Airlines

American Airlines stock surges 10% as strong demand drives 2024 profit forecast

In this article AAL Follow your favorite stocks CREATE FREE ACCOUNT watch now American Airlines on Thursday posted a $19 million profit for the last three months of 2023, topping Wall Street estimates on the top and bottom lines. Shares of the company rose more than 10% on Thursday. Here's how American performed in the fourth quarter of 2023 compared with Wall Street estimates compiled by LSEG, formerly known as Refinitiv: Earnings per share: 29 cents adjusted vs. 10 cents expected. 29 cents adjusted vs. 10 cents expected. Revenue: $13.06 billion vs. $13.02 billion expected. For the last three months of 2023, American Airlines reported net income of $19 million, down nearly 98% from $803 million the year prior. Earnings per share decreased to 3 cents from $1.14 in the fourth quarter of 2022. Adjusting for one-time items, including the impact of a new labor agreement with the airline's pilots, American earned 29 cents per share. In its third-quarter earnings report, the airline had estimated it would break even for the December period. Stock Chart Icon Stock chart icon American Airlines' stock price "We're really pleased with the results, we closed out the year strong," CEO Robert Isom told CNBC's Phil LeBeau on Thursday. "At American, we're focused on reliability, profitability and really strengthening our balance sheet. We've done all of those ... I think that we're going to have a really busy first and second quarter, and I think the time to buy is right now for travel. It's going to be a busy year." Looking ahead, American said it expects a net loss per share of between 15 cents and 35 cents, adjusted, for the first quarter of 2024. Costs, excluding fuel, are projected to rise between 2% and 4% for the period, with flying capacity up between 6.5% and 8.5%. Boeing 787-9 Dreamliner, from American Airlines company, taking off from Barcelona airport, in Barcelona on 24th February 2023. JanValls | Nurphoto | Getty Images For full-year 2024, American expects adjusted earnings per share of $2.25 to $3.25 with flying capacity up mid-single digits over 2023. In a letter to American team members, Isom said the strength of the business meant all U.S. and Canada-based employees will receive a profit-sharing payment in March. The earnings report comes on a busy day for the airline industry, with Southwest and Alaska also reporting fourth-quarter earnings Thursday. United Airlines on Monday posted higher-than-expected earnings and revenue and a sunny forecast for 2024. Carriers have been navigating tricky winter weather in the early weeks of January, but American said it achieved its best-ever on-time departures over the December holidays.

https://www.cnbc.com/2024/01/23/airline-stocks-rise-as-united-kicks-off-busy-earnings-week.html

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Southwest Airlines

Airline stocks rise as United kicks off busy earnings week

Boeing 787-10 Dreamliner, from United Airlines company, taking off from Barcelona airport, in Barcelona on 28th March 2023. United Airlines shares rose about 5% on Tuesday after the company reported higher-than-expected earnings and revenue for the fourth quarter. The carrier hit its full-year adjusted earnings target of between $10 and $12 a share in 2023 and said bookings so far in 2024 have been solid. The report kicks off a busy week of airline earnings reports, with quarterly updates from American , Southwest and Alaska all due out on Thursday. Shares of those three carriers were each up about 3% Tuesday. Shares of Delta, which reported fourth-quarter earnings earlier this month, were also up about 3%. United forecast a first-quarter loss due to the grounding of Boeing 737 Max 9 planes this month but CEO Scott Kirby told CNBC in an interview Tuesday that the airline is seeing an increase in business travel in 2024. "It's only two weeks into the year, but we have seen a step up in business travel. We're back now in terms of revenue, at least above where we were in 2019," Kirby told CNBC's Phil LeBeau. United shares are about flat this year but are down about 30% from their 52-week high of $58.23 recorded in July. Shares of Spirit Airlines , which have been on a tumultuous ride in the last week since a federal judge blocked the carrier's planned merger with JetBlue, rose about 3% on Tuesday. JetBlue stock was also up about 3%.

https://www.cnbc.com/2023/07/28/analysts-bail-on-southwest-airlines-after-its-disappointing-quarterly-earnings.html

LUV

Southwest Airlines

Analysts bail on Southwest Airlines after its disappointing quarterly earnings

Wall Street is beginning to step to the sidelines for Southwest Airlines . The company's second-quarter earnings report disappointed investors. The company said its ongoing struggles with lower unit revenue on higher costs are likely to continue into the current quarter. Deutsche Bank downgraded shares to hold from buy on an earnings forecast cut and limited upside. "After comparing June quarter operating and pretax margins to the four airlines that have already reported (i.e., Alaska, American, Delta, and United), Southwest did not look so fine ranking last," Deutsche analyst Michael Linenberg wrote in a Friday note. "Our sense is that Southwest is 'punching below its weight class' with respect to revenue generation, possibly due to the fact that it has yet to fully achieve network optimization. We also believe the company is falling behind its peers from a revenue diversification perspective," Linenberg added. The analyst lowered his price target to $38 from $52, still implying 15% upside from Thursday's close. Raymond James also downgraded Southwest shares to outperform from strong buy, calling it a "Texas-size heartache." The firm reduced its price target to $40 from $47, implying a 21.1% rally. Analyst Savanthi Syth said that while the company has taken the right steps to adjust its schedule to reflect post-pandemic shifts in travel, the recovery to 2019-level profitability will not be seen until 2024 to 2025. "To be clear, we do not believe the Southwest model is broken, and we believe valuation should reflect its net cash position resulting in a balance sheet that is head and shoulders above most of the industry," Syth said in a Friday note. Bank of America decreased its price target on shares to $35 from $45, which implies just 6% upside from where shares ended Thursday. Analyst Andrew Didora said the company's cost increases were "hard to defend" in his downgrade to neutral from buy. "2023 was the year LUV needed to focus on hitting its capacity and cost goals, particularly in light of the operational issues the airline had at the end of 2022. While capacity continues to be added and tracking in line with plan, unit costs keep moving higher due to labor costs and likely continued investments in the operation," Didora said. Southwest shares shed 0.6% Friday before the bell, following an almost 9% tumble during the previous trading session. The stock is down 1.9% year to date. — CNBC's Michael Bloom contributed to this report.

https://www.cnbc.com/2024/01/14/heres-why-warren-buffett-calls-airline-stocks-hazardous-to-your-investment-health-.html

LUV

Southwest Airlines

Here's why Warren Buffett calls airline stocks hazardous to your investment health

With a midair emergency, disappointing profit forecast and more aircraft groundings after only two weeks, the airline industry is already off to a turbulent 2024. That only vindicates Warren Buffett, who dumped $4 billion worth of airline stocks in the pandemic and will most likely never give the industry another chance. Buffett, chief executive officer of Berkshire Hathaway and renowned as the "Oracle of Omaha," has long said the airline business suffers from a low-margin, capital-intensive model as well as additional risks stemming from forces outside its control, like the price of jet fuel and geopolitical uncertainty. "It's a labor intensive, capital intensive, largely commodity-type business," Buffett said during the annual meeting of Berkshire shareholders in 2013. "That's been a deathtrap for investors." Being a leader of an airline is also a thankless, burdensome job since so many problems can arise, Buffett said. "I mean, believe me, no joy being a CEO of an airline," he said in 2020. "It's a very, very, very difficult business because you're dealing with millions of people every day and if something goes wrong for 1% of them, they are very unhappy." Buffett, one of the world's biggest dealmakers with mountains of cash on hand, said he's been approached many times by investors wanting to start an airline business. But the entreaties only turned off Buffett. "I've had probably a dozen proposals over the last 25 or 30 years from people that that want to get into the airline business ... and a number of them have. It's sexy for some reason," Buffett said in 2013. As Buffett's late business partner Charlie Munger once quipped: "You really couldn't create another railroad, but you can create another airline. And that's what we don't like about it." Selling airlines In 2020, Buffett revealed that Berkshire sold all of its equity holdings in the U.S. airline industry. That included stakes worth a combined $4 billion in all four legacy carriers — United Airlines , American Airlines , Southwest Airlines and Delta Air Lines . Buffett said at the time that the pandemic might have fundamentally changed the industry. "The world has changed for the airlines. And I don't know how it's changed and I hope it corrects itself in a reasonably prompt way," Buffett said then. "I don't know if Americans have now changed their habits or will change their habits" as a result of the shutdown, the prolonged Covid outbreak and canceled travel plans. Back then, many Buffett watchers were left disappointed as shares of those carriers soon staged an epic rebound, more than doubling from their 2020 lows. Even former President Donald Trump weighed in on the trade, saying that Buffett has been right "his whole life" but made a mistake selling airlines. However, Buffett might still get the last laugh since, despite their bounce off the lows, the carriers never fully recovered from the pandemic damage. In fact, the U.S. Global JETS ETF (JETS), which tracks 50 U.S. and international airlines, remains about 40% below pre-Covid levels in 2019. 'Bad century out of the way’ Buffett shocked many when he returned to the industry in 2016, buying 10% of the four largest U.S. airlines. By that time, he had avoided the sector for a decade and had been so opposed to investing there that he told shareholders in a 2007 letter that "if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down." One exception during that prior decade came when Berkshire bought NetJets, which sells fractional ownerships shares in private business jets, for $725 million in 1998 When Buffett broke his own rule to buy the airline stakes in 2016, he chose to believe that the industry had finally strengthened after being plagued by bankruptcies throughout in the 20th century. "It's true that the airlines had a bad 20th century. They're like the Chicago Cubs. And they got that bad century out of the way, I hope," Buffett said i n an CNBC interview at the time. "The hope is they will keep [aircraft] orders in reasonable relationship to potential demand." Bumpy ride all along The legendary investor's first investing experience with the industry was buying more than $350 million of USAir convertible preferred stock in 1989 . Initially Berkshire took a bath on the USAir holding, but it eventually just about broke even. But Buffett was chastened. "It could've been worse, but it was a mistake," Buffett said at Berkshire's 1995 annual meeting . In the following year's shareholder letter, in 1996 , Buffett repeated an old joke about investing in airlines: "When Richard Branson, the wealthy owner of Virgin Atlantic Airways, was asked how to become a millionaire, he had a quick answer: 'There's really nothing to it. Start as a billionaire and then buy an airline.'"

https://www.cnbc.com/2023/12/18/southwest-fined-140-million-for-last-years-holiday-meltdown.html

LUV

Southwest Airlines

Southwest fined $140 million for last year's holiday meltdown

The U.S. Department of Transportation on Monday said it fined Southwest Airlines $140 million for violating consumer protection laws during last year's holiday meltdown that stranded millions of customers following severe winter weather. The DOT said the fine is 30 times larger than any fine it has issued for consumer protection violations. It includes a $35 million cash payment to the government, which Southwest said will be paid over three years. The agency ordered Southwest to set up a fund to compensate future travelers for flight disruptions in the airline's control. The airline also received credit for $33 million for giving travelers affected by the disruption frequent flyer miles. "Today's action sets a new precedent and sends a clear message: if airlines fail their passengers, we will use the full extent of our authority to hold them accountable," Transportation Secretary Pete Buttigieg said in a news release. Southwest didn't provide enough customer assistance during the meltdown or give prompt flight change notifications, the DOT said. "DOT's investigation found that Southwest's call center was overwhelmed, which at times led to a full call center queue and meant customers got a busy signal upon calling the customer service telephone number," the agency said. The airline also didn't provide refunds or reimbursements in a timely manner, the DOT said, citing an audit of the process. Southwest canceled nearly 17,000 flights during the year-end holiday period last year after it failed to recover as rivals also did from a severe winter storm, stranding some two million people and costing the airline more than $1 billion. It paid more than $600 million in reimbursements and refunds to customers alone. Speaking at an industry event in New York last week, CEO Bob Jordan vowed that last year's holiday meltdown "will never happen again," just days ahead of the busy holiday travel period. The carrier's executives have touted a host of improvements this year that they say will help it avoid a repeat of last year. Southwest purchased additional de-icing equipment and upgraded crew scheduling technology that last year fell short of what it needed to reschedule pilots and flight attendants during the disruptions. Those shortfalls last year contributed to the chaos. "We have spent the past year acutely focused on efforts to enhance the Customer Experience with significant investments and initiatives that accelerate operational resiliency, enhance cross-team collaboration and bolster overall preparedness for winter operations," Jordan said in a news release Monday.

https://www.cnbc.com/2020/09/30/morgan-stanleys-harris-says-black-lives-matter-fueled-interest-in-diverse-firms.html

SWK

Stanley Black & Decker

Morgan Stanley's Harris says Black Lives Matter has helped sparked interest in diverse companies

Carla Harris, Morgan Stanley's vice chair of Global Wealth Management, said Wednesday that the acceleration of the Black Lives Matter movement has come in tandem with an uptick in investing interest in diverse and female-led companies. Harris, who spoke via video call at the annual Delivering Alpha conference presented by CNBC and Institutional Investor, added that investors in the modern era no longer have an excuse for being unable to find investments that prioritize a diverse c-suite and workforce. "Especially since the Black Lives Matter movement has accelerated, more of the [venture capitalists] that that we talked to last year are now saying that they are actively looking for investment opportunities with multicultural and female entrepreneurs," Harris said. The Morgan Stanley executive added that it's also important for an investor considering a stake in a diverse company to themselves have multicultural colleagues. "I'll tell you some of the suggestions that we made in our last white paper that they actually have embraced," she continued. "They're things like making sure that you give feedback when you have an entrepreneur who comes to you and you decide not to invest: Give them the feedback on what they can do to enhance and maybe come back and get another bite at the apple." "Expanding your network, showing up at the conferences and the convenings where these entrepreneurs are trafficking," Harris said. "More importantly, make sure that you have a multicultural partner at the table because that obviously gives you an opportunity to access to a network that you may not have." Harris, one of Wall Street's most powerful women, was joined on the panel by Kewsong Lee, the chief executive of The Carlyle Group. As one of the globe's largest and most-recognized private equity firms, Carlyle has for years stressed diversity among the companies it works with, Lee said. "Companies that are more diverse in our portfolio grow 12% faster than companies that are less diverse," Lee told CNBC's Sharon Epperson. "That's just proof that it shows up in better performance if we can drive better performance." "It absolutely helps drive performance," he added. The comments from Harris and Lee come amid what many consider a fundamental change in the way investors analyze and invest in companies toward one that factors a firm's impact on the environment, society at large and how it conducts its own governance. Shortened to the acronym ESG, Morgan Stanley wrote last month that the new focus is "likely to dominate financial markets during the 2020s" due to societal trends driving change across consumer, corporate and investor behavior. Companies with more diversity, for example, tend to score better all else equal when an investor is evaluating a prospective stake. But firms like Morgan Stanley and Carlyle stress that their focus on ESG isn't purely altruistic, but rather critical to to understanding a company's growth potential as well as possible risks, among other things. "The Covid-19 crisis has brought social and governance elements to the fore, and these have gained a lot of traction with investors," the firm said in a note to clients. "In particular, there has been an added focus on how companies treat their employees, suppliers, customers and society as a whole, as investors incorporate the treatment of stakeholders into their investment process."

https://www.cnbc.com/2024/02/14/2-stocks-were-thinking-about-buying-after-tuesdays-market-decline.html

SWK

Stanley Black & Decker

Here are a couple of stocks we're thinking about buying after Tuesday's market decline

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key moments. 1. U.S. stocks climbed Wednesday, rebounding after the market suffered one of its worst sessions in the past year. Equities declined on Tuesday after key inflation data came in hotter than expected for January. The reaction was a surge in bond yields and a delay in when the market thought the Federal Reserve would start cutting interest rates. June is now the betting favorite. Jim Cramer said it was a "needed sell-off" after recent highs. Expect more important inflation data on Friday. 2. The Club is looking to buy more shares of high-quality names after early-week losses. "I'm itching to buy some of them that have been really crushed," Jim said, citing Starbucks and Stanley Black & Decker. We've been sitting on a lot of cash, and waiting for stocks to pull back to capitalize on any weakness. Both companies have solid fundamentals and long-term growth prospects but are underperforming the market year-to-date. 3. Wall Street continues touting Palo Alto Networks on Wednesday. Morgan Stanley expects solid quarterly earnings from the cybersecurity leader, citing positive survey work and channel conversations. However, analysts said they would not be aggressive buyers ahead of next week's release of fiscal results. That's because estimates are unlikely to move much higher and the stock's valuation is already above its historical average. It's hard to argue with a stock up roughly 25% year to date after more than doubling in 2023. (Jim Cramer's Charitable Trust is long PANW, SWK, SBUX . See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

https://www.cnbc.com/id/100149410

SWK

Stanley Black & Decker

Stanley Black & Decker selling unit for $1.4B

NEW BRITAIN, Conn. -- Tool maker Stanley Black & Decker Inc. is selling its hardware and home-improvement business to Spectrum Brands Holdings Inc. for $1.4 billion in cash. The hardware and home-improvement unit makes locksets, hardware and faucets for residential use and includes brands such as Pfister, Baldwin and Kwikset. Spectrum Brands, based in Madison, Wis., said that the acquisition will broaden its product offerings which include the Rayovac, Remington and Toastmaster brands. Stanley Black & Decker, which is based in New Britain Conn., said the sale is part of its ongoing strategy to diversify its revenue and geographic reach. The hardware and home-improvement unit gets 90 percent of its revenue from North America and more than 50 percent of its revenue from U.S. home-improvement stores. Both companies' boards have approved the transaction. Spectrum Brands shares climbed $4.88, or 11.9 percent, to close at $46.04 Tuesday. Stanley Black & Decker shares shed $1.99, or 2.7 percent, to $72.24. Stanley Black & Decker anticipates the transaction will result in $1.3 billion in proceeds after taxes. It plans to use a majority of the proceeds to buy back shares and a smaller portion to reduce debt. The remaining proceeds, along with offshore capital, will be used to pay for its previously announced acquisition of Infastech, a Hong Kong company that makes fasteners. Stanley Black & Decker says that the deal with Spectrum is not expected to change its financial outlook for 2012. Spectrum, which is majority owned by Harbinger Group Inc., says the acquisition of the hardware and home-improvement business should add 75 cents to 80 cents per share in fiscal 2013 and add more than $1 per share in fiscal 2014, excluding one-time transaction and integration costs. The hardware and home-improvement business will operate as a separate unit once the deal closes, which is expected during Spectrum's first quarter in fiscal 2013. It will be run by Greg Gluchowski, who currently serves as the unit's president at Stanley Black & Decker. Gluchowski will report to Spectrum CEO David Lumley. The deal announced Tuesday also includes certain assets of Taiwan's Tong Lung Metal Industry Co., which makes residential and commercial locksets. Stanley Black & Decker purchased Tong Lung over for summer for about $100 million. Spectrum's acquisition of the Tong Lung assets is anticipated to close in the second quarter.

https://www.cnbc.com/2024/01/16/this-stock-buy-is-a-play-on-a-bounce-back-in-home-improvement-this-year.html

SWK

Stanley Black & Decker

This small stock buy is a play on a bounce back in home improvement this year

We are buying 55 shares of Stanley Black & Decker at roughly $93.98. Following the trade, Jim Cramer's Charitable Trust will own 740 shares of SWK, increasing its weighting in the portfolio to 2.27% from 2.10%. We are making a small buy of SWK, slightly violating our average cost basis of $90.22. Shares are down about 4% year to date as many of the late 2023 "broadening out" rally winners have taken a slide since the recent bounce in interest rates. Shares of this hand tool maker tend to have an inverse relationship with rates because of its ties to the housing market, especially existing home sales. The concept is simple: When people move into an older home, they are more likely to put more money into it and take on remodeling projects. Some of Stanley Black & Decker's leading brands are DeWalt, Black + Decker and Craftsman. Even though the stock is down slightly this year, we see more signs that the home improvement market will rebound after a tough few years. Piper Sandler reinforced this call earlier Tuesday in a detailed note when it upgraded its rating on Home Depot . The main reason for Piper Sandler's call is stabilizing home equity extraction, which is when a homeowner takes out equity from the value of their home through a loan— extra cash often used to fund a large remodeling project. As Piper points out, home equity extractions have declined because of higher interest rates. However, analysts think it will return to growth in the first quarter of this year based on improving mortgage refinance applications. And if mortgage rates stabilize at these levels, Piper thinks extractions will grow "modestly" this year. The real bullish trend will be if rates fall even further, creating what Piper calls a "meaningful" extraction cycle considering the firm's estimate of a near-record $10.6 trillion of tappable equity. All of this is very positive for the home improvement industry at large and Stanley Black & Decker, a company that has spent the past year and a half working down excess inventory which, when finished, will give its margins a clean start ahead of a potential upcycle. (Jim Cramer's Charitable Trust is long SWK. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

https://www.cnbc.com/2024/02/01/cramer-buy-this-turnaround-stock-that-can-pop-when-the-fed-cuts-rates.html

SWK

Stanley Black & Decker

Jim Cramer tells investors to buy the earnings-driven declines in 2 portfolio stocks

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Thursday's key moments. 1. U.S. stocks bounced on Thursday, one day after slumping on Fed talk that an interest rate cut was unlikely in March. We worried this would happen because the market got ahead itself on the number of expected rate cuts in 2024. This is why we built up a war chest of cash throughout the month. Meanwhile, investors continue digesting quarterly earnings, with Club names Apple , Amazon and Meta Platforms set to post results after the bell. Jim Cramer said Thursday that members should be aware that the iPhone maker will likely guide down on softer China sales. But as we said earlier this week , Apple's growth prospects and solid fundamentals leave us bullish long term. 2. Stanley Black & Decker posted better-than-expected quarterly earnings per share before the opening bell Thursday. But it missed on revenue and the full-year EPS guide midpoint was below estimates. The stock was falling 4%. The Club holding, however, continues to show progress on cost initiatives as management gets rid of excess high-cost inventory. Jim said it's a perfect time to buy this industrial stock on the dip. Shares should run up once the Fed starts lowering rates — likely later this year — and mortgage rates fall. This will give people more confidence to improve their homes themselves or hire contractors, which should lead to increased demand for the tools that Stanley Black & Decker makes. 3. Honeywell shares were down nearly 4% after the industrial giant's earnings release. We took the dip as a buying opportunity , remaining upbeat because of its better-than-expected segment margin performance and cash flow generation. Although the results weren't stellar, Jim said management's full-year guidance was conservative and beatable. "This is a major opportunity" to buy the stock's unwarranted sell-off, Jim said. "Go buy Honeywell." (Jim Cramer's Charitable Trust is long SWK, HON, META, AAPL, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

https://www.cnbc.com/id/40718385

SWK

Stanley Black & Decker

A Coming Catalyst for Stanley Black & Decker?

Buy Stanley Black & Decker ahead of its January earnings call, Cramer told viewers during Friday’s “Mad Money.” That catalyst, or the company’s analyst meeting shortly thereafter, could boost the stock price. When those events arrive, investors will be looking for news of Stanley’s continuing synergies with Black & Decker, which was bought in March. The newly combined company brought some of the best-known brands in the hand-tool, commercial and do-it-yourself businesses—Stanley, Bostitch, Best, Black & Decker, DeWalt, and Baldwin—under one roof. With Stanley’s solid management and Black & Decker’s great brands, global reach and scale and diversified product line, the new venture controls a virtual monopoly in the sector. “Stanley Black & Decker thoroughly dominates the industry,” Cramer said, “an industry that’s coming back with a vengeance here in the United States as more and more Americans try to fix up their homes because there are actually buyers out there now, even if I’m practically the only person in the media who will admit it.” Stanley management had originally expected $350 million in annual cost savings by the third year after the March deal closing, but now they’re predicting closer to $400 million. Cramer thinks that number could go even higher as time goes on, and he said the company should realize these savings sooner than anticipated. And that’s not even counting all the revenue synergies from cross-selling, expanded distribution and the increased scale in fast-growing emerging markets where Black & Decker has a lot of exposure. Management said it will offer more details on the synergies during either its January earnings call or its analyst meeting, which follows soon after. If the news is good, and likely it should be, shareholders will be rewarded. That’s why Cramer wants investors in ahead of the announcement. “Talk about major catalyst for the stock,” he said, “one that I think could send the stock soaring, maybe even to the $70s.” When this story published, Cramer's charitable trust owned Stanley Black & Decker. Call Cramer: 1-800-743-CNBC Questions for Cramer? madmoney@cnbc.com Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

https://www.cnbc.com/2024/02/27/jim-cramer-says-wall-street-initially-got-lowes-quarter-and-guide-wrong-heres-why.html

SWK

Stanley Black & Decker

Jim Cramer says Wall Street initially got Lowe's quarter and guide wrong. Here's why

Jim Cramer's daily rapid fire looks at stocks in the news outside the CNBC Investing Club portfolio. Lowe's : The home improvement chain beat on profit and revenues. The stock reversed higher despite conservative guidance. Lowe's is more levered to do-it-yourself projects, which continue to be soft. CEO Marvin Ellison was basically saying "January was week," Jim Cramer said Tuesday. But Cramer said January is often a weak month. Cramer said Stanley Black & Decker , a holding the CNBC Investing Club portfolio, is a buy off these Lowe's numbers. Macy's : The department store chain reported better than expected quarter but offered conservative guidance that missed forecast. The company, which has Bloomingdale's and Bluemercury under its umbrella, said it's leaning into these higher-end brands and reducing the Macy's store footprint. "Macy's, I'm really warming up to," Cramer said, explaining that former CEO Jeff Gennette did good things for the company and current CEO Tony Spring is continuing the work. In retail, the Club owns Costco and off-price retailer TJX , which might find it tougher to find good merchandise as the industry moves away from promotion, Cramer said. Zoom : The video conferencing company delivered a better-than-expected quarter and announced a buyback worth $1.5 billion. "They don't have the growth people want … to make it a growth stock. And people don't like value technology [stocks]. There's not much to do there," Cramer said. CFO Kelly Steckelberg will be on "Mad Money" on Tuesday evening. Unity Software : The platform for video game creators issued weak guidance amid concerns about market share loss. Unity announced 1,800 cuts jobs last month as part of a corporate restructuring plan. Competitor Applovin is kind of crushing Unity, Cramer said. Workday : The provider of enterprise cloud applications for finance and human resources reported a better-than-expected quarter but its guidance was softer. Cramer said Workday, ServiceNow and Club holding Salesforce are the "three best software-as-a-service companies in the world." He added, "I feel pretty good about Workday."

https://www.cnbc.com/2024/01/10/planning-to-stick-with-this-2023-cybersecurity-stock-standout-again-this-year.html

SWK

Stanley Black & Decker

Why we're planning to stick with this 2023 cybersecurity stock standout again this year

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key moments. 1. U.S. stocks edged higher Wednesday ahead of Thursday's important December consumer price index. Among the S & P 500 and the Dow , the tech-heavy Nasdaq was the best performer — helped by gains in Club names Microsoft , Amazon and Nvidia . In fact, Nvidia rose more than 2% higher Wednesday, pushing further into record-high territory. U.S. oil benchmark West Texas Intermediate added about 65 cents a barrel, to nearly $73, while natural gas futures slid more than 5% after a hot start to the year. 2. Analysts at Morgan Stanley on Wednesday doubled down on Palo Alto Networks as their top idea in cybersecurity and lifted their price target on the stock to $375 per share from $304. The firm said it expects 2024 to be a "banner year" for the cybersecurity industry for a host of reasons, including an elevated threat environment and the Securities and Exchange Commission's new disclosure rules . Shares of the Club holding jumped more than 4% on Wednesday and were on pace for their third straight day of gains following a seven-session skid that began in the final days of 2023. After making a small, disciplined trim last week to lock in profits on a 2023 standout, we don't envision another Palo Alto sale anytime soon. 3. In a potential readthrough to Club holding Stanley Black & Decker , Wedbush Securities upgraded Home Depot to buy with a $380-per-share price target. The research firm previously had a hold-equivalent rating and price target of $330 on the retailer. Wedbush's newfound bullishness is tied to its belief that home-improvement spending will return to growth by the second half of this year. This could bode well for Stanley Black & Decker if Home Depot customers — both on the professional and do-it-yourself sides — direct some of their dollars to the Club holding's tool brands such as DeWalt and Craftsman. (Jim Cramer's Charitable Trust is long NVDA, MSFT, AMZN, PANW, and SWK. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

https://www.cnbc.com/2022/11/28/black-friday-was-better-than-feared-for-retail-stocks-two-potential-big-winners-.html

SWK

Stanley Black & Decker

Black Friday was better than feared for retail stocks — Two potential big winners

Black Friday was better than expected for retailers this year, with discount names Walmart and Costco poised to be among the season's winners, according to Bank of America. Online sales were up 2.3% year over year for the day after Thanksgiving, reaching a record $9.12 billion , according to Adobe. Foot traffic at brick-and-mortar stores, however, was still below 2019 levels, Bank of America analyst Justin Post said in a note Sunday. It was up 2.9% from 2021, data from Sensormatic Solutions shows. The National Retail Federation has said it expects sales during November and December to rise between 6% and 8% from last year. "We would characterize early Black Friday data as slightly positive for the sector, and we continue to expect 4Q to be a little more back-end loaded than last year due to prior year inventory issues," Post said. Inflation is putting a strain on consumers' wallets this year, which has them hunting for bargains . That puts discount retailers well-positioned to gain share, especially Walmart , Costco and BJ's Wholesale Club , Bank of America analyst Robert Ohmes wrote in a separate note Monday. Walmart launched its Black Friday deals four days early for online shoppers and offered its Walmart+ members early access to its Black Friday events, which included two earlier dates in November, he said. The big-box retailer made significant price investments to offer deeper discounts, and traffic appeared very strong in stores, Ohmes noted. "Overall, stores appeared very well-staffed & well-stocked (though in certain stores we observed lighter inventory for items like TVs, toys & bikes that may have been selling out)," he wrote. He has a $165 price target on the stock, which implies 7.8% upside from Friday's close. Customer traffic was also solid in warehouse clubs Costco and BJ's; however, Costco's was stronger, Ohmes said. "COST showcased TVs, electronics, and other displays (including various home appliances) at the front of the club, and we noticed the highest traffic levels in the apparel, electronics, and grocery departments," he said. "At BJ's we saw the strongest traffic in the grocery/household consumables." Ohmes has a price target of $605 on Costco, implying 13% upside from Friday's close. Among his reasons for the valuation are Costco's "healthy customer traffic growth and strong membership renewal rates, which should continue given our expectation for a further rise in the perceived value of shopping at warehouse clubs and COST's leading warehouse club position from a merchandising, store execution, and private label standpoint." Telsey Advisory Group also called discounters the likely winners on Black Friday weekend as consumers continue to favor one-stop shopping for essentials and value-focused discretionary items. "Furthermore, superior digital functionalities, including faster fulfillment via Drive Up, higher levels of inventory, and elevated markdowns and promotions across discretionary categories attracted consumers," analyst Dana Telsey wrote in a note Monday. Overall, shoppers were most focused on toys, beauty, accessories and footwear, according to Deutsche Bank. "Specialty retailers appeared to be relative winners while we observed decent trends across the discounters and department stores," said analyst Krisztina Katai. Outperformers include Walmart, Bath & Body Works , Ulta Beauty , VF Corp 's The North Face, Gap 's Old Navy, American Eagle Outfitters and Lululemon , she wrote in a note Monday. Morgan Stanley also called out strong traffic results for Lululemon and American Eagle, as well as Abercrombie & Fitch and Victoria's Secret. "These strong traffic results were achieved despite 1) similar or lower y/y discounting levels, & /or 2) discounting activity below total sector averages. In our view, this means these retailers' assortments likely resonated with consumers & allowed these banners to drive relatively more profitable Black Friday revenue," analyst Alex Straton wrote in a note Monday. Meanwhile, Target , which earlier warned of weak holiday sales , is favored by Piper Sandler, which recently upgraded the stock to overweight from neutral. "We have become tactically more constructive on stocks where we see a gross margin recovery opportunity in 2023," said analyst Edward Yruma. "Our recent upgrade of Target ... was predicated on the framework that 2022E's ~400 bps in gross margin compression provides a material recovery opportunity in 2023, even if revenue trends see pressure from a deteriorating consumer," he wrote in a note Monday. — CNBC's Michael Bloom contributed reporting.

https://www.cnbc.com/2024/02/23/ford-disney-costco-and-more-jim-cramer-provides-his-updated-views-on-each.html

SWK

Stanley Black & Decker

Ford, Disney, Costco and more — Jim Cramer provides his updated views on each

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.) As we gear up for the CNBC Investing Club's annual meeting on Saturday, I asked Jim Cramer for some quick thoughts on some of the day's portfolio movers. " Ford seems really interesting as the electric vehicle market slows down," Jim said. One of the key points from Ford's fourth quarter was a greater push into hybrid vehicle production with a pullback EV spend. " Disney 's strategy is too much like Warner Bros. Discovery for my liking," Jim said. "They need some sort of change agent there," he added, alluding to the proxy battle between Disney and Train's Nelson Peltz. "Lost in all the semi talk is the continued strength of Costco . I think we can hold it," Jim said. "But I think that Stanley Black & Decker has gotten too cheap versus everything else in the sector." "I don't want to get too excited but the way Starbucks and Estee Lauder trade it is like China has hit bottom," Jim said. We'll be running through many more of the stocks in the Club portfolio during Saturday's meeting, which members can watch live starting at 1:30 p.m. ET on our website . Conference call update : Coterra Energy reported earnings Thursday evening but held its conference call Friday morning. The main takeaway from the call was that the oil and natural gas producer has plenty of flexibility to shift investment to where it will generate the highest return. For 2024, that means pulling back on natural gas production and focusing on oil. While the near-term fundamentals around nat gas look bleak, management is optimistic about the outlook 12 to 18 months from now. The main reason: lots of new LNG export capacity is expected to come online toward the end of the year into early 2025. This coupled with the possibility of cold weather gives the team hope for a price recovery. Coterra plans to keep a watchful eye on the commodities market and will be ready to act when gas fundamentals improve. But in the interim, it plans to stay disciplined. After all, it is hard to predict how long downswings in commodity cycles will last. "We will be patient and watch for recovery in the gas macro," CEO Tom Jorden explained. He added the company would rather wait a few months for a recovery before investing too early. We appreciate this focus on returns instead of chasing production and activity. Club earnings: Two companies in the portfolio are scheduled to report next week. Both are out Wednesday: off-price retailer TJX Companies before the opening bell and enterprise software giant Salesforce after the closing bell. Outside the portfolio, some of the more interesting earnings reports will come from Elanco Animal Health , Unity , Zoom , Lowe's , American Electric Powe r, Cava , Snowflake , Paramount Global , Best Buy and Zscaler . Economic calendar: the data point likely have the most influence on the bond market is the Federal Reserve's favorite inflation gauge: the personal consumption expenditures (PCE) price index. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.)

https://www.cnbc.com/2023/11/06/like-wall-street-were-bullish-on-starbucks-long-game-.html

SBUX

Starbucks

Wall Street analysts fall back in love with Starbucks. We're glad to see them coming around

A slate of Wall Street firms have raised their price targets on Starbucks (SBUX) on the back of the coffee maker's standout quarterly report last week and ongoing signs management is doubling down on investing in the business — further highlighting why we're long-term shareholders in this iconic brand. Barclays on Monday raised its price target on Starbucks to $123 a share, up from $116, while maintaining an overweight rating on the stock. The call came after analysts at the bank met with Starbucks executives, who reportedly painted a bullish picture looking out to fiscal year 2024. "Ongoing investment in both wages [and] equipment has allowed for stores to become more productive while also helping to improve the employment experience for customers," Barclays analysts wrote in a research note to clients. Indeed, Starbucks subsequently said Monday it plans to raise hourly wages for its U.S. retail workers, or partners, by at least 3% from the start of next year. "With significant ongoing investments of more than $1 billion since last year to uplift the overall partner and store experience, the company has seen a positive shift in hourly turnover rates, which are now below pre-pandemic levels," Starbucks said in a statement Monday. The move is part of the company's "Triple Shot Reinvention Plan," which is being spearheaded by recently appointed CEO Laxman Narasimhan. The plan includes more than $1 billion of investments in employee wage increases, new store equipment to accelerate order flow, digital innovation, and supply chain improvements in fiscal 2024, according to the company. "The focus of the reinvention plan was to elevate the experience in our stores for our partners and through our partners for our customers," Narasimhan said during a presentation for investors last Thursday. Those comments came on the heels of Starbucks delivering an upside surprise for its fiscal fourth quarter that included strong comparable-store sales growth and excellent margin expansion. The results restored our confidence in Starbucks' ability to reach its long-term targets, including in China, which remains a key growth market for the coffee chain. "I think Starbucks is now a leader because it has one thing going for it: It has a new CEO, Laxman Narasimhan," Jim Cramer said Monday. "This is a guy who's a consumer products guy, who really understands tech," he added. SBUX YTD mountain SBUX year-to-date performance. Meanwhile, Wedbush on Monday also raised its price target on Starbucks, to $106 a share, up from $100, while reiterating a neutral rating on the stock. RBC Capital raised its price target to $111 a share, up from $99, with a sector perform rating. And Citi on Sunday took its price target to $110 a share, up from $100, maintaining a neutral rating on the stock. Since the coffee giant reported last Thursday before the opening bell, shares have surged more than 13%, to trade around $103.80 apiece. Following the results, we reiterated a 1 rating on the stock, meaning we would be buyers at current levels. (Jim Cramer's Charitable Trust is long SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. The Starbucks logo is seen on a cup in this photo taken in the cafe at the airport in Charleroi, Belgium, July 27, 2023. Jakub Porzyck | Nurphoto | Getty Images

https://www.cnbc.com/2023/11/02/starbucks-results-reassure-investors-with-a-show-me-story-.html

SBUX

Starbucks

Starbucks' quarterly results reassure investors with a 'show me story'

Starbucks (SBUX) delivered an upside surprise with its fiscal fourth quarter on Thursday, showing strong comparable-store sales growth and excellent margin expansion — and restoring investor confidence in the coffee maker's ability to attain its long-term targets. Revenue for the three months ended Oct. 1 rose 11.4% year-over-year, to $9.37 billion, beating analysts' estimates of $9.29 billion, according to LSEG. Adjusted earnings per share (EPS) increased 39% from the same period last year, to $1.06, exceeding analysts' predictions of 97 cents per share, LSEG estimates showed. The better-than-expected quarter and strong guidance for fiscal year 2024 sent shares of Starbucks roughly 10% higher Thursday, to close at $100 apiece. Bottom line After Starbucks in August reported a small comparable sales miss in North America for its fiscal third quarter, a narrative took root that the company was facing the beginning of a broader slowdown. Investors feared that the coffee maker's long-term targets of 10% to 12% revenue growth and 15% to 20% earnings growth were in jeopardy. At the time, CEO Laxman Narasimhan vigorously defend those targets, pointing to the strength of the brand and productivity-driven margin expansion. But the market didn't fully believe him, which is why we called the stock a "show me story." And as the market lost confidence in the targets, Starbucks' stock price fell to $90 a share by the start of October — when we most recently added to our position — down from around $100 in August. But on Thursday following the results, investors heard a much more compelling story from Starbucks — forcefully pushing back against the bear case. The power of Starbucks' brand is driving strong traffic and sales growth, despite the uncertain macroeconomic environment. Management also has a credible plan in place to progressively expand margins in the years ahead. The company said Thursday that it's working on an additional $3 billion savings program and efficiencies it expects to unlock in the next three years, mostly as a result of improvements to the supply chain. Today's 10% pop in the stock is an example of what happens when a "show me story" delivers, and we think more gains are in the stock's future. As such, we reiterate our 1 rating , meaning we would be buyers of Starbucks stock at these levels. Quarterly commentary Comparable-store sales in North America in the fiscal fourth quarter grew by 8% on an annual basis, beating analysts' estimates of 7%. Total sales for the region increased by 12.5% year-over-year, to $6.9 billion. More importantly, store profitability was impressive, as operating margins expanded 460 basis points from last year and 150 basis points sequentially, to 23.2%. Starbucks cited continued investment in its employees, equipment, supply chain and technology as reasons behind the productivity-driven margin expansion. In short, increased operational efficiencies are fueling sales growth. Pricing was a tailwind, too. One example of a productivity enhancement is Starbucks' new portable foam for handling cold beverages, which it recently rolled out at all its U.S. stores. This new technology has lessened the strain for Starbucks' in-store employees and helped them meet the high demand cold beverages Believe it or not, cold beverages have become more popular than hot drinks at the coffee chain. In the U.S., comparable sales increased 8%, with a 6% increase in ticket, or spending, and 2% growth in transactions. Starbucks' U.S. comps were better than the 7% expected and an uptick from the third quarter, as well. Starbucks also saw solid growth in its 90-day active rewards membership program, which increased to nearly 33 million customers, from 31.4 million last quarter. Comparable sales at the international segment increased 5% on annual basis, missing estimates of about 6.7%, as total revenue increased 11.4%, to $1.98 billion. Margins expanded year-over-year by a meager 300 basis points, to 15%. However, the bright spot at the international segment was China, which once again performed better than feared. Revenues increased 8% from last year and 2.2% sequentially, to $840.6 million, with comparable store sales up 5%, beating estimates of 4.7%. Starbucks added 326 stores in China last quarter, bringing its total count to 6,806. Starbucks has a goal of opening nearly 1,000 net new stores every year in the country, reaching 9,000 stores by 2025. Guidance For fiscal year 2024, Starbucks expects global comparable sales in the range of 7% to 9%, which is slightly better than Wall Street's 6.9% consensus estimate. In the U.S., comps are expected to grow 5% to 7%, roughly in line with the 6.1% consensus figure. China comps are expected to grow 5% to 7%, as well. Total revenue growth is expected to be in the low end of management's 10% to 12% range, which is about in line with a consensus estimate of 10.4%. On the bottom line, non-GAAP (generally accepted accounting principles) EPS are expected to grow 15% to 20%, ahead of expectations for a 14.7% growth rate. Lastly, Starbucks expects global new-store growth of about 7% in fiscal 2024, with 4% more stores in the U.S. and 13% more stores in China. Notably, Starbucks made a slight tweak to its longer-term growth algorithm. At its investor day event last year, Starbucks had introduced three-year financial targets of 7% to 8% comp growth, 10% to 12% revenue growth, and 15% to 20% EPS growth. But the company walked back those goals slightly Thursday, and now expects comp growth of 5% or more, revenue growth of 10% or more, and EPS growth of 15% or more over the same period. The adjustments could be conservative revisions on the part of CEO Narasimhan, who recently took over from Howard Schultz, the architect of the initial three-year targets. Regardless, we aren't worried, as the new estimates create 'under-promise, over-deliver' opportunities down the line. (Jim Cramer's Charitable Trust is long SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. A Starbucks logo at a location in New York on Aug. 17, 2023. Gabby Jones | Bloomberg | Getty Images

https://www.cnbc.com/2024/01/16/top-stocks-to-buy-on-tuesday.html

SBUX

Starbucks

Here are Tuesday's biggest analyst calls: Apple, Boeing, Starbucks, Target, Home Depot, Nike, SolarEdge and more

Here are Tuesday's biggest calls on Wall Street. KBW initiates Shift4 Payments as buy KBW said the entry point on Shift is too attractive to ignore. "Attractive Entry Point for a Strong Organic and Inorganic Growth Story." UBS initiates Nucor as buy UBS said the metals company is a "high quality industrial." " Nucor has thoughtfully reengineered its business model by significant downstream expansion and upgrading the upstream mill segment to target faster growth and higher value added product and end market verticals." Piper Sandler upgrades Home Depot to overweight from neutral Piper Sandler said it's taking a "more bullish stance on home improvement." "We are taking a more bullish stance on home improvement — and more specifically, large remodel projects - as home equity extraction activity is trending toward improvement in 2024." Barclays upgrades NXP Semiconductors to overweight from equal weight Barclays said the semis company is well-positioned. "When looking at the group we actually think NXP is most well positioned as they are the lowest off the prior peak, they undergrew during the pandemic, and using industry advertised growth rates of above 10% shows them as the best relative vs. Street estimates." Citi adds a positive catalyst watch on Verizon Citi said it's bullish heading into earnings later this month. "We are adding VZ to Citi's Positive Catalyst Watch list as we expect the upcoming 4Q earnings season to highlight the stabilizing wireless competitive landscape." Deutsche Bank upgrades Western Digital to buy from hold Deutsche Bank says it sees an attractive risk/reward for Western Digital shares. "With the stock trading below the low end of the range, we believe the risk-reward is attractive, and we upgrade WDC to Buy with a $65 price target (from $45)." Stifel upgrades Dutch Bros. to buy from hold Stifel said it likes the company's management. "We are upgrading BROS to Buy from Hold for several reasons. We believe the company is poised to make meaningful progress on several fronts under Ms. Christine Barone's leadership." Citi downgrades Anheuser-Busch InBev to neutral from buy Citi said in its downgrade of the stock that it sees earnings risk. "The risk to ABInBev's earnings is rising. " Mizuho downgrades PayPal to neutral from buy Mizuho said in its downgrade of the stock that it sees market share losses. "Downgrading PYPL to Neutral from Buy. Our data suggests that market share loss to Apple Pay looks increasingly challenging. We also worry about an emerging age demographic problem, as younger cohorts in the US gravitate towards newer payment methods like Apple Pay, auto-fill, and BNPL." BMO initiates Datadog as outperform BMO said in its initiation of Datadog that it sees "cloud and consolidation tailwinds." "We are positive on the underlying fundamentals of the observability sector, and we believe Datadog and Dynatrace will consolidate spend as the category expands." Goldman Sachs initiates Nextracker as buy Goldman Sachs said the solar supplier is a "technology leader." "We initiate coverage of Nextracker (NXT) with a Buy rating and a $62, 12-month price target, representing roughly ~50% upside. NXT is the #1 global supplier of solar trackers, with a leadership position both in the US and internationally." Canaccord initiates SolarEdge and Enphase as buy Canaccord said it's bullish on several solar energy companies on Tuesday. "We initiate on SolarEdge Technologies (SEDG) with a HOLD and $80 PT. We also initiate on Enphase Energy (ENPH) with a BUY and $142 PT." Wells Fargo downgrades Boeing to equal weight from overweight Wells Fargo downgraded the stock due to ongoing concerns about the Max issue. "With FAA taking a closer look into BA's production, we think the risk of production/delivery impact increases significantly. We don't see enough upside to justify this risk and downgrade to EW from OW." Wells Fargo upgrades Victoria's Secret to overweight from equal weight Wells Fargo said the stock is a top margin recovery play. "We are upgrading VSCO to OW (one of the best margin recovery plays in the space)." Wells Fargo reiterates Amazon as overweight Wells Fargo said it's bullish heading into Amazon earnings later this month. "Expect another solid print w/ total OI [operating income] 8% above Street & strong retail performance. In absence of new retail efficiency drivers, AWS & ads outlook likely determine stock performance." Morgan Stanley upgrades Starbucks to overweight from equal weight Morgan Stanley said the risk/reward looks attractive for Starbucks shares. "After recent weakness driven by real headwinds across SBUX's global business, we see interesting risk-reward skew here and move to Overweight." Bernstein downgrades Hewlett Packard Enterprise to market perform from outperform Bernstein downgraded the stock on valuation. "We are downgrading HPE from Outperform to Market-Perform, and lowering our price target from $20 to $17." Morgan Stanley upgrades Target to overweight from equal weight Morgan Stanley said the stock is an "attractive investment." "We are upgrading TGT to Overweight with a $165 PT. Risk/reward skews wide and favorably with ~60%/~32.5% upside/downside to our $225/$95 bull/bear cases and ~17% upside to our raised $165 PT." Bernstein upgrades Boston Beer to market perform from underperform Bernstein said the stock's valuation is more reasonable. "We believe this is a more reasonable valuation given SAM' s growth profile, and upgrade SAM to Market-Perform with a Target Price of $335." TD Cowen upgrades BlackRock to outperform from market perform TD Cowen said in its upgrade BlackRock that it sees margin upside. "Steady margins and consistent capital return." Deutsche Bank reiterates Apple as buy Deutsche Bank said its survey checks show Apple Services is showing growth. "With the Services business becoming an increasingly more important part of AAPL's growth story, we continue to run our survey in order to get better insight into the trajectory of the segment." Bank of America upgrades Dow to buy from neutral Bank of America said in its upgrade of Dow that it sees an "upcycle for petrochemicals." "After turning more constructive on Dow's shares and moving to a Neutral in October 2023, we are now raising our rating to Buy, with a PO of $60 (from $57). Our upgrade is predicated on our petrochemical sentiment indicator moving into positive territory in late-2023." Morgan Stanley upgrades DocuSign to equal weight from underweight Morgan Stanley said it sees a more balanced risk/reward for shares of DocuSign. "With this in mind, we believe shares appropriately discount the respective Bull/Bear scenarios and the potential likelihood of an acquisition, and as a result we move to EW." BMO upgrades Fluence to outperform from market perform BMO said it's getting more bullish on the energy company. "As previously noted in our year ahead report and our recent work, we have been constructive on FLNC as we see it as one of the few names in our sector in 2024 that we think offers investors sustainable revenue growth and visibility that is not overly dependent on rates or additional policy clarity." Citi upgrades Sallie Mae to buy from neutral Citi said in its upgrade of the stock that it sees "balance sheet growth." "We are upgrading Sallie Mae to Buy from Neutral and increasing our target price to $23 from $14 due to higher expected balance sheet growth, potential to grow market share from a competitor exit, and we expect higher gain on sale margins as interest rates fall from elevated levels." Bernstein reiterates Constellation Brands as a top pick Bernstein said the beverage company is a top idea in 2024. " STZ has the best category exposure within US beer, with 86% of profits derived from a beer portfolio composed entirely of super premium Mexican imports." Morgan Stanley reiterates Nike as overweight Morgan Stanley said Nike is a top idea in 2024. "In Brands, NKE is our top Brand Overweight, & we'd look to get more constructive on other Brands with compelling fundamental rate-of-change, valuation re-rating, & sentiment improvement opportunities ~heading into 2H."

https://www.cnbc.com/2023/11/02/starbucks-sbux-earnings-q4-2023.html

SBUX

Starbucks

Starbucks stock rises 10% as U.S. customers buy into pricier drinks

Customers are seen at the American multinational chain Starbucks Coffee store in Hong Kong. Starbucks on Thursday reported quarterly earnings and revenue that topped analysts' expectations, fueled by strong U.S. demand for pricier drinks. Shares of the company closed up 9.5% on Thursday. Here's what Starbucks reported for its fiscal fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv: Earnings per share: $1.06 vs. 97 cents expected Revenue: $9.37 billion vs. $9.29 billion expected The coffee giant reported net income attributable to the company for the quarter ended Oct. 1 of $1.22 billion, or $1.06 per share, up from $878.3 million, or 76 cents per share, a year earlier. Net sales climbed 11.4% to $9.37 billion. The company's same-store sales rose 8%, fueled by higher average checks and a 3% increase in customer traffic to its cafes. Analysts surveyed by StreetAccount were expecting same-store sales growth of 6.8%, but the company's domestic locations outperformed. Starbucks launched its fall menu, including the pumpkin cream cold brew and iconic pumpkin spice latte, in late August. With a legion of dedicated fans, those drinks typically drive customers to its locations while they are available. "We had a remarkable fall launch that led to record-breaking average weekly sales," CEO Laxman Narasimhan told analysts on the company's conference call. U.S. and North American same-store sales grew 8%. The average check in Starbucks' home market rose 6%, while traffic ticked up 2%. Outside North America, same-store sales increased 5%, driven entirely by more customer visits. And in China, Starbucks' second-largest market, same-store sales rose 5%. Customer traffic increased 8%, but the average ticket fell 3%. "We feel good about the overall returns that we're getting there, and I'm heartened by how the business is coming together, despite all the headwinds that have been there for the last couple of years," Narasimhan told analysts. A year ago, same-store sales in China plunged 16%, hurt by the Chinese government's long-held zero Covid policy, which hamstrung traffic. China rolled back that policy several months later, but Starbucks' cafes there faced an uneven recovery. Investor fears about the market have weighed on the stock in recent months. Looking to fiscal 2024, Starbucks expects same-store sales growth of 5% to 7%, down from its long-term forecast of 7% to 9% same-store sales growth. CFO Rachel Ruggeri said on the call that the outlook for same-store sales reflects a "healthy, as well as achievable, comp guidance." But the rest of the company's outlook fell within its previously stated long-term targets. For example, the company's revenue forecast of 10% to 12% matches its prior guidance, although Ruggeri said net sales will likely come in on the lower end of that range. Starbucks also maintained its earnings per share growth forecast of 15% to 20%. The company is forecasting that it will increase its global footprint by 7% in fiscal 2024. Its U.S. footprint is expected to grow 4%, while China's will climb 13%. Starbucks projects that China will report same-store sales growth of 4% to 6% during the last three quarters of the fiscal year. The company's outlook doesn't include any impact from currency exchange rates. Starbucks will also be giving an update on its "reinvention" strategy to investors on Thursday afternoon in New York City.

https://www.cnbc.com/2023/11/02/starbucks-unveils-expansion-plans-cost-cutting.html

SBUX

Starbucks

Starbucks unveils plan to add 17,000 locations by 2030, cut $3 billion in costs

Starbucks on Thursday presented the latest stage in its plan to drive growth for the company, which involves accelerating its global footprint and saving $3 billion in costs over the next three years. The company said it plans to expand to 35,000 locations outside of North America by 2030. Starbucks currently has roughly 20,200 international cafes, as of Oct. 1. In total, the coffee giant aims to reach 55,000 locations globally by 2030, up from its current count of more than 38,000. "Three out of every four new stores over the near term is expected to be opened outside of the U.S. as our store portfolio becomes increasingly global," Michael Conway, president of Starbucks' international and channel development divisions, said during a company presentation. Starbucks also announced a $3 billion cost-savings plan. Executives said $1 billion of those savings will come from making its stores more efficient. The rest will come from saving on its cost of goods sold. The final piece of what Starbucks called its "Triple Shot Reinvention Strategy," announced Thursday, calls for wage increases for baristas, doubling their hourly income over fiscal 2020 earnings by the end of fiscal 2025. That jump will come from both increased hours and higher pay. Starbucks said it would share more details next week. The announcement comes after more than 350 Starbucks locations have unionized under Workers United, according to National Labor Relations Board data. Starbucks and the union have not yet reached a collective bargaining agreement at any of those locations, and both the union and the NLRB have accused Starbucks of breaking federal labor law, including illegally withholding wage hikes at union stores. The company denies all allegations of union busting.

https://www.cnbc.com/2023/11/03/why-we-see-a-bright-future-for-constellation-brands-and-starbucks-.html

SBUX

Starbucks

Why we see a bright future for Constellation Brands and Starbucks following investor events

Investor events this week from Club holdings Constellation Brands (STZ) and Starbucks (SBUX) left shareholders like us bullish on the path forward for both beverage makers. Beer producer Constellation Brands provided a business update on Thursday during an event for investors at which management outlined its strategic priorities to foster ongoing growth. On the same day, coffee giant Starbucks held an investor event after reporting strong quarterly results before the opening bell report — an earnings report that restored investor confidence and demonstrated Starbucks' commitment to transforming its business in the U.S. and across the globe. Constellation Brands STZ YTD mountain STZ performance year-to-date. The company called its beer business, which includes bestselling brands like Modelo Especial, Corona and Pacifico, "the main driver of our strong growth." Management reiterated its 7% to 9% net annual sales-growth forecast for its beer business over the medium term. Constellation also sees sequential improvement in revenue growth for its historically underperforming wine-and-spirits business, which includes brand names like Woodbridge, Kim Crawford and SVEDKA. In fiscal year 2025, the company believes it can reach 1% to 3% net sales growth for the division, below a prior range of 2% to 4% growth. The company expects organic sales at the wine-and-spirits unit to decline 1% to 2% in fiscal year 2024. Constellation said Thursday that it expects to deliver double-digit diluted earnings-per-share (EPS) growth in the medium term, while also growing its operating cash flow. And management also announced a $2 billion share-repurchase authorization. The Club's take: We were hoping to see Constellation separate its wine-and-spirits business, but we can also make the case that its better to wait and not sell while the business is down. If management delivers on its goal of sequential improvement to both the top line and profitability while hitting its targets, the wine-and-spirits unit could attract a more willing buyer. We were pleased to see the company reiterate its medium-term growth expectation for its beer business, while targeting low double-digit EPS growth excluding losses from its cannabis business, Canopy Growth. Constellation's $2 billion share repurchase shows its disciplined approach to capital allocation, and we expect to see more consistent capital returns in the future. Indeed, activist investor Elliot Management, which entered into a cooperation agreement with Constellation earlier this year , said it is working with management to create long-term shareholder value. We added to our position in Constellation last week. Starbucks SBUX YTD mountain SBUX year-to-date performance Starbucks Thursday delivered a much better-than-expected fiscal fourth quarter , in addition to an encouraging update on its business during its investor day. A standout for the coffee giant was its stellar performance in China, the growth segment of its international business. Same-store sales in China for the quarter were up 5% year-over-year, beating analysts' forecasts of 4.7%. Starbucks CEO Laxman Narasimhan on Thursday told Jim Cramer about the coffee giant's plans to "continue to grow" in the world's second largest economy. Despite the slow post-pandemic recovery, Starbucks continues to attract customers in China as a result of its high-end brand appeal. "The momentum against the backdrop of headwinds in China this past year give us optimism in our position and affirms our distinctive competitive advantages for our business," Narasimhan said Thursday on the company's post-earnings conference call. The company added 326 stores in China last quarter, bringing its total count to 6,806. Starbucks' goal is to reach 9,000 stores in the country by 2025. Starbucks said it plans to improve customer convenience through increased mobile orders and drive-thru options at stores, while also investing in new equipment. And the company said it's expanding its reward-membership program globally, putting it on track to double its membership to 75 million customers within the next five years. Lastly, Starbucks detailed strong demand in North America, where average weekly sales outpaced pre-pandemic levels by double digits last quarter. To address this unrelenting demand, Starbucks plans on building new stores with updated layouts, while "unlocking capacity" at existing stores. The company currently operates 17,800 stores in the U.S. and Canada. The Club's take: This is a different Starbucks that is focused on increasing efficiencies. The company is run by a consumer expert in CEO Narasimhan, who we believe will lead the company to successfully execute on its targets. In addition to investing in its stores, Starbucks is also taking steps to improve the overall experience for its employees. It is a much better-run company than in the past. While there are still ongoing macroeconomic challenges in China, management is taking a long-term perspective as it continues to eye a huge growth opportunity in the country. We last added to our position in Starbucks at the start of October. (Jim Cramer's Charitable Trust is long STZ, SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Corona beer, owned by Constellation Brands. Getty Images

https://www.cnbc.com/2024/01/05/the-stanley-x-starbucks-quencher-is-now-selling-for-hundreds-on-ebay.html

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The limited edition Stanley x Starbucks Quencher is now selling for hundreds on eBay

The thirst for Stanley's hottest cup can't be quenched. The Quencher H2.0 FlowState Tumbler, which has become iconic in recent years thanks to a concerted effort to rebrand it for a female audience rather than Stanley's historically male customer base, has had multiple high-profile collabs in recent months, including with country music star Lainey Wilson. The newest offering — a pink Stanley featuring the Starbucks logo on the side — has become a social media sensation, with fans rushing into Target as soon as the doors opened to get their hands on one. The Starbucks collab, as well as a Valentines Day collection featuring a red Quencher and a pink Quencher, were so popular that Target limited customers to two per person. Indeed, demand for the cups is so high that the only way to get one now is on the resale market, and resellers are trying to take advantage. Listings on eBay are going for hundreds of dollars, with most auctions seeing the bidding climb over $200 for the $45 cups.