There are some picks in this sector that have excellent valuations and strong earnings growth.
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The company lost more customers than expected after it announced pricing changes and a plan to split operations.
The number came in Monday, and it was big: 800,000.
That's how many subscribers Netflix (NFLX) lost in three months. And that's a big reason its shares were plummeting Tuesday even though the company posted a pretty decent quarter.
Breaking down a broken-down metric.
By Joe Magyer
Ah, the PEG ratio. An approach to valuation celebrated by lovers of growth stocks, including some at the Fool, the PEG ratio is typically defined as a company's trailing P/E ratio divided by analysts' five-year estimates of earnings growth. The ratio has won over many fans because:
- The inputs can be quickly and readily found on nearly any financial site.
- It is relatively intuitive.
- It doesn't require any complex math.
Conventional wisdom states that if a company's P/E ratio is roughly on par with its growth rate, its stock is about fairly valued. If a company's growth rate is higher than its P/E ratio, the stock would appear to be undervalued, and vice-versa.
An increase in mergers could be a good sign for the markets in the months to come.
"Merger Monday" appears to be in full effect again.
After a period of quiet in capital markets activity, there were a few mergers announced Monday, which could be a sign that managers are seeing low valuations in the stock market as an opportunity to add businesses at cheap prices. Call it the "Warren Buffett" line of thinking.
Here are some of the most interesting parts from the book, which went on sale Monday.
Amazon (AMZN) says the book could very likely be its top-selling of the year. People are eagerly reading it, looking for insight and inspiration from a man who didn't reveal much publicly about himself or his life.
Some Wall Street economists say a congressional deficit committee is headed for failure, making a rating cut more likely.
That's what economists at Bank of America Merrill Lynch say in a recent report. And political squabbling will be very much to blame.
The problem lies with the congressional supercommittee charged with coming up with ways to reduce the deficit. The committee is turning out to be anything but super. Members spent most of September in a standoff, The New York Times reports.
This steelmaker trades at just 5.5 times earnings and yields nearly 4%.
The best time to bet on steel is usually at the point of maximum pessimism. I don't know if we're there yet, but it says a lot that ArcelorMittal (MT) recently sank even lower than the depths of the March 2009 bottom.
That spells opportunity, because the company is in much better shape than it was during those dark days.
Some leading tech shares may have gone too far too fast, while others are showing signs of continued upside.
By Tom Aspray, MoneyShow.com
In a recent post, I discussed the most oversold Dow stocks, which focused on the results of one of the scans that I run each weekend.
It is based on Starc band analysis, as I have found that it is important to know which stocks or ETFs are closest to their monthly and weekly Starc+ or Starc- bands. When a security is close to its monthly Starc- band, it indicates that it is already oversold. Statistically, this makes it more likely that the security will stabilize or rebound rather than continue to drop sharply.
The company's new RIO robotic system offers a less invasive approach.
It was almost exactly seven years ago that we ﬁrst discovered Intuitive Surgical (ISRG), which was just getting started with its da Vinci surgical robot, which offered less invasive surgeries.
Now along comes Mako Surgical (MAKO), which is loosely replicating Intuitive's success by offering its own robotic surgical solution. In fact, Intuitive's founder sits on Mako's board of directors.
A pair of companies will give investors a glimpse into the health of the economy as the holidays approach.
By Robert Holmes, TheStreet
Investors are stuck in a no man's land in which Credit Crisis 2.0 is capsizing a shaky global economy.
Every region of the world and asset class has its share of woes, from emerging markets to bonds, a condition that's unnerving American investors already wracked with worry over high unemployment.
Record revenue and a bright outlook from the industrial equipment giant are signs the global economy is still growing.
By Robert Holmes, TheStreet
Caterpillar's (CAT) third-quarter earnings report is a sign the global economy won't suffer another wave of recession.
Caterpillar, the world's largest maker of construction and mining equipment, reported a third-quarter profit of $1.71 a share Monday, an increase of 40% from a year earlier. Revenue jumped 41% to $15.7 billion, although the results include the company's acquisition of mining company Bucyrus International. Excluding that, revenue of $14.6 billion was an all-time record.
It's a big earnings week for these ETFs.
By Andrea Tse, TheStreet
1. iShares Dow Jones U.S. Energy Sector Index Fund (IYE)
Major oil companies will be in focus this week, pushing IYE and other large-cap energy ETFs into the spotlight. Exxon Mobil (XOM), Chevron (CVX) and ConocoPhillips (COP) are among the companies slated to report their earnings. This trio accounts for over 40% of the fund's total portfolio.
IYE has seen a strong run up in recent weeks as EU-related concerns have begun to abate. This strength has helped it recover all of the losses it suffered during the September selloff.
The days ahead will be crucial for IYE. In the event that confidence returns, the fund could be in for a lift. However, given its top heavy nature any exposure to IYE should be kept small.
In a region where Weimar inflation and German deflation led to social unrest and the rise of Hitler, peace and stability are more important than triple-A credit ratings.
In other words, there truly is no plan big enough and no entity large enough to rescue banks from themselves. The European banks, unlike the American ones, are so huge and so intertwined with the fortunes of sovereign debt that anyone who even thinks there could be a solution that isn't catastrophic is regarded as a lightweight.
This time, the sporadic approach of the past has been replaced with a comprehensive nationwide rollout for the cult boneless pork sandwich.
McDonald's (MCD) has been tearing it up in 2011. Shares are up 20% so far this year compared with a flat market. The company's McCafe coffee offerings have been a tasty and affordable alternative for cash-strapped consumers, and flashy upscale store redesigns and an exclusive McDonald's McTV channel look to build on current momentum.
But for some fast-food fans, the tastiest development of all is McDonald's plans to bring back the vaunted McRib sandwich in November. And this time, the sandwich will appear not just sporadically but nationwide as part of a serious rollout.
The heavy-equipment maker posts better-than-expected earnings. The movie rental company reports after the close.
By Andrea Tse, TheStreet
Construction equipment manufacturer Caterpillar (CAT) reported third-quarter adjusted earnings of $1.93 a share, beating the estimated $1.54. Caterpillar said it would have full-year sales of $58 billion after forecasting a range of $56 billion to $58 billion. Caterpillar also expects to have a full-year profit of $6.75 a share, compared with a previous outlook of $6.25 to $6.75.
Online movie rental company Netflix (NFLX) is expected to post a third-quarter profit of 94 cents a share after the markets close Monday, up from 70 cents last year.
Manufacturer Eaton (ETN) said third-quarter earnings rose 36%, and it reaffirmed the midpoint of its full-year earnings outlook. Excluding a charge related to acquisitions, earnings in the quarter were $1.08 a share, matching estimates.
A diversified portfolio and a high credit rating make this health care leader a defensive favorite.
We are boosting our stake in blue chip healthcare stocks and have chosen Johnson & Johnson (JNJ) as the latest stock to join our Growth Portfolio
The company one of the best-diversified and most defensive stocks in the health care sector; it is also one of a handful of companies that emerged from the ravages of the credit crunch and recession with an AAA credit rating from S&P.
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These hot movers could rise by double digits in coming months.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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