There are some picks in this sector that have excellent valuations and strong earnings growth.
VIDEO ON MSN MONEY
The company beats expectations on revenue and profit.
Apple (AAPL) is back to its pattern of blowing away analyst estimates.
The company beat Wall Street expectations Tuesday for the December quarter, reporting record profit of $13.06 billion, or $13.87 a share, up from a profit of $6 billion, or $6.43 a share, a year earlier. Revenue was a record $46.33 billion, up from $26.74 billion a year earlier.
Analysts had expected $10.14 a share in profit on revenue of $39.1 billion for the quarter ended Dec. 31. Shares were up about 6% Wednesday.
The stock is extremely volatile. And while that's not unexpected, it is a reason to sell into the current rally.
Which companies got praised or panned the most following their earnings reports?
Apple (AAPL) will give one of the most highly anticipated reports of the quarter after the close Tuesday. Expect some buzz after Yahoo (YHOO) reports later Tuesday as well.
Bespoke Investment Group has a nice roundup of the best-performing and worst-performing stocks so far this earnings season. These are the stocks that saw the biggest gains or losses in the day following the earnings report.
While the fourth-quarter results are encouraging, it may be too soon to say that banks are set to soar this year.
Wall Street analysts like Barclays Capital's Jason Goldberg went into the new year predicting that bank earnings would jump.
Now that biggest in the business have reported their earnings for the fourth quarter of 2011, the numbers suggest there's at least some hope of that happening.
However you slice it, J&J's prospect of earnings growth looks bleak as economic and competitive 'headwinds' continue.
The company said it expects earnings per share of $5.05 to $5.15 excluding costs of a major acquisition.
A long-standing holding of Berkshire Hathaway, the bank is outperforming its bigger rivals.
Wells Fargo (WFC) reported its fourth-quarter results last week and the Warren Buffett favorite beat its big bank rivals. Overall, this was a solid quarter for the San Francisco bank, and we understand why Buffett likes it.
It reported a 20% increase in net income that matched the expectations of Wall Street and generated more revenue than was expected, aided by strength in its mortgage business.
Lengthy court battles over 'slide-to-unlock' technology could slow Android's market share gains.
After Samsung's infringement claim against Apple (AAPL) was rejected by a German court, Apple is now focused on Google's (GOOG) latest Galaxy Nexus smartphone, claiming that it infringes on Apple's "slide-to-unlock" technology.
After the bans and licensing on the Galaxy S-II in 2011, this year could be full of legal sparring and pose similar problems for Google's homegrown phone.
The market constantly misreads earnings from these companies, and you can profit as a result.
By Jim Cramer, TheStreet
There's something very humdrum about the predictability and reaction to earnings this time around. But we will still attempt to shoehorn everything through the eyes of the stocks, not the companies.
Here are some time-honored patterns:
The 'Dim Sum' market, which is open to Western investors, can provide exposure to China with lower levels of risk.
By Eric Dutram
Although the Chinese economy is apparently slowing down -- to a rate of 'just' 8.9% in the most recent release -- some investors remain relatively bullish.
These investors point to the country's massive reserves and still small consumer economy as two areas which, if unlocked, should help the country avoid a hard landing in the near term.
As the fast-food giant looks to expand internationally, its supply chain will become more difficult to manage.
In fact, the sound fundamentals of the company might have fueled unreal optimism and overheated the stock. Skeptics who thought the company would struggle during a recession were proved wrong as McDonald's and several other restaurant stocks, including Yum! Brands (YUM), Starbucks (SBUX) and Chipotle Mexican Grill (CMG), all significantly outperformed the broader indices.
Once out of favor, homebuilder stocks have been on a torrid run. But seasonal weakness and extreme bullishness are likely to produce a correction.
By Tom Aspray, MoneyShow.com
In the first few weeks of 2012, there have been a large number of articles and headlines discussing homebuilding stocks. The positive news on housing so far in 2012 has turned even more analysts and investors bullish on this sector. Does that mean you should be buying now?
Clearly, sector selection was the key in 2011, and it should also be a key factor in your stock choices for 2012. From a technical standpoint, the homebuilders have had an impressive run since their volume surge in mid-October.
It's too little, too early to get worked up about the new offerings from the world's biggest coffee chain.
With 18,000 stores tapping out as much coffee as reasonably possible, Starbucks (SBUX) has decided to grow its top line -- at least for some of its stores -- by widening its menu in a major way. Soon, at a couple dozen locations in Atlanta and Southern California, Starbucks will offer coffee, scones -- and brewskis?
Yes, the world's biggest chain of coffeehouses has tiptoed further into the world of beer and wine (the company has already been testing alcohol sales in the Pacific Northwest), looking to get more round-the-clock revenue flowing from its admittedly enviable real estate.
Zynga is initiated with 'outperform,' and Deutsche Banks is downgraded to 'neutral.'
Tuesday's noteworthy upgrades include:
- Bed Bath & Beyond (BBBY) upgraded to Buy from Hold at Deutsche Bank
- KLA-Tencor (KLAC) upgraded to Buy from Neutral at Citigroup
- Harmony Gold (HMY) upgraded to Buy from Neutral at UBS
- Western Digital (WDC) upgraded to Buy from Hold at Needham
- Electronic Arts (EA) upgraded to Buy from Hold at Hudson Square
This gold play doesn't undertake any mining operations; instead it holds royalty interests in other miners.
Royal Gold (RGLD) buys royalty interests in gold mines around the world, paying an upfront fee to secure a fixed percentage of future production or revenues.
Royal Gold gets its hands on buckets of precious metals without having to get its hands dirty. It doesn't assume any of the cost (or risk) of traditional mining -- those burdens fall on the owners of the mines.
The burger chain's solid earnings couldn't allay investor concerns about foreign-currency fluctuations, however.
Net income rose 11% to $1.38 billion, or $1.33 per share, versus $1.24 billion, or $1.16 billion, a year earlier. Revenue rose 10% to $6.82 billion. Analysts surveyed by FactSet had expected earnings of $1.30 on revenue of $6.8 billion.
MORE ON MSN MONEY
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The Ukraine crisis festers and other fresh concerns boil to the surface, knocking down markets and giving volatility some life.
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.
[BRIEFING.COM] The stock market ended the Thursday session on a modestly lower note, but a late-morning rebound lifted the indices off their lows. The S&P 500 shed 0.2% with seven sectors ending in the red.
This morning, European equities and U.S. futures slumped around 6:00 ET after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news pressured the markets, but a brief uptick took place after a correction to ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|