There are some picks in this sector that have excellent valuations and strong earnings growth.
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The company reports several improvements and is ranked a short-term 'buy.'
By: Zacks Equity Research
AutoZone Inc. (AZO) recorded a 24% rise in profit to $4.68 per share in the first quarter of its fiscal 2012 ended November 19, 2011 from $3.77 per share in the year-ago quarter. The result, reported Tuesday, beat the Zacks Consensus Estimate of $4.45 per share. In absolute terms, profit increased 11% to $191.1 million from $172.1 million a year ago.
The increase in profit was driven by a 7.4% rise in net sales to $1.92 billion, which surpassed the Zacks Consensus Estimate of $1.90 billion. Domestic same-store sales (for stores open at least one year), increased 4.6% during the quarter compared with 9.5% a year ago.
These picks in oil, autos and finance offer something important for beginners.
Are you a novice investor wondering which stocks to buy first? Or perhaps you're just looking to put your money to work? Either way, these three stocks are perfect choices for beginners.
Cenovus Energy (CVE) has dipped in recent weeks before bouncing higher alongside the market's surge. Oil prices have firmed up, but even so, CVE isn't a story about near-term earnings. Investing in CVE means investing in long-term growth from Canada's Alberta oil sands as world oil supplies continue to tighten. Production from oil sands increased 14% last quarter and now equals conventional oil production. At a time when many oil companies are expected to have trouble replacing reserves, CVE is set up for double-digit production growth over the next 10 years.
Genpact has been winging higher and has bested the superconglomerate's stock.
Several analysts believe Genpact is just starting to build up and is on its way to greater heights. "Genpact is attractively priced relative to the company’s future growth prospects," says Joseph D. Foresi, analyst at Janney Capital Markets, who rates the stock a buy.
International Paper has turned itself into the most important container board company in the world -- just as e-commerce has exploded.
Over the last five years, International Paper (IP) has turned itself into the most important container board company in the world. It did so in the nick of time because e-commerce is about shipping things that would normally be thrown into a bag at the store. Now those same products are more than likely to end up in a linerboard package that would very likely be made by IP, at least once the Temple Inland (TIN) deal closes.
Despite economic worries, the high-end retailer continues to outperform Wall Street expectations.
Shares of luxury jewelry retailer Tiffany & Co. (TIF) have endured a roller coaster ride this year, reaching an all-time high in July only to plummet in late summer amid fears about the health of the global economy.
But the growth scare hasn’t curbed customers’ appetite for the finer things in life; Tiffany has outperformed Wall Street’s expectations for six consecutive quarters.
Les Moonves recently offered a surprisingly upbeat assessment of advertising sales.
Speaking at a conference hosted by UBS, the head of America's most-watched TV network offered a surprisingly upbeat assessment of advertising sales. "Network television's doing better than it's done in many years," he said.
He added that CBS ad prices in the scatter market -- which sells advertising spots closer to a program's air date -- were up "in the mid-teens" from prices seen in the springtime upfront market. He also said that CBS' competitors "are doing not as well."
A warning sign has emerged for one of 2011's top-performing sectors, calling into question which sectors will outperform in 2012.
By Tom Aspray, MoneyShow.com
The S&P 500 closed Monday at 1257.09, just a fraction below 1257.64, which was where it closed on December 31, 2010. Clearly, a buy-and-hold strategy on the S&P 500 has not worked well this year, but performance is always relative.
Those who bought and held the Select Sector SPDR - Financial (XLF) are feeling much worse, as it is currently down 17.4% for the year. Looking at the quarterly performance of the nine major Select Sector SPDR ETFs, you get even a better feeling for how difficult the past year has been.
China's biggest online travel agency has 13,000 employees, and has seen margins fall as wages increase.
Microsoft details its Xbox 360 Live TV offering, which includes Bing-powered voice control.
Apple (AAPL) is coming out with a TV. Sony (SNE) is trying to beat Cupertino to the punch. Google (GOOG) is preparing for a living-room war. Enter Microsoft (MSFT). (Microsoft owns and publishes Top Stocks, an MSN Money site.)
The Redmond giant quietly set the stage a few months ago by bringing a gaggle of Verizon FiOS channels to the Xbox 360 alongside content partners such as Comcast and Time Warner. Microsoft has now gone official with its plans with a press release ambitiously titled "The Future of TV Begins Now on Xbox 360."
What do you get from owning a share in the team? Maybe the bigger issue is what you don't get.
About 1,600 online orders came in the first 11 minutes, slowing down the website and frustrating some buyers, the team said. It was the team's first stock sale in 14 years and the fifth in its history.
But there isn't much here that resembles stock. In fact, the team even admits that its common stock "does not constitute an investment in 'stock' in the common sense of the term."
The bank has much less exposure to the eurozone than some of its major peers.
No doubt the global economic slowdown, aggravated by the escalating debt situation in Europe, has considerably impaired the financial institution's outlook for this year and next. But the current share prices hardly do justice to the value of the bank, which holds the distinction of being the largest custodian bank in the world.
BNY Mellon has much less exposure to the eurozone compared to other major banks -- particularly investment banks such as Morgan Stanley (MS).
A drop in business at the Italian-style dining chain is expected to slow profit and sales growth in fiscal 2012.
Updated: 5:41 p.m. ET
Shares of Darden Restaurants (DRI) plunged 12.4% Tuesday after the company cut its earnings outlook, having failed to ignite consumer interest in its struggling Olive Garden chain.
Darden, the world's largest full-service restaurant company, expects earnings per share growth from continuing operations of 4% to 7% for fiscal 2012, down from an earlier forecast of 12% to 15%. Sales are now expected to rise 6% to 7%, below a previous estimate of 6.5% to 7.5%. The Orlando, Fla. company blamed its problems on the dismal performance at the 750 Olive Garden locations.
The equipment maker is bullish about prospects in China in particular, where it's expanding production capacity.
Management says it will continue to expand production levels next year, when it expects sales and revenue to grow by 20%. Caterpillar is very bullish about the growth prospects in China in particular, where it's expanding production capacity. It mainly competes with Deere and Co. (DE), Komatsu, Terex (TEX) and Cummins (CMI).
Two analysts upgraded LinkedIn. Exxon Mobil was upgraded to 'buy' while Altria was initiated with a 'buy.'
Tuesday's noteworthy upgrades include:
- General Electric (GE) upgraded to Outperform from Market Perform at Bernstein
- Texas Instruments (TXN) upgraded to Outperform from Market Perform at JMP Securities
- LinkedIn (LNKD) was upgraded to Overweight from Neutral at JP Morgan and to Overweight from Equal Weight at Morgan Stanley
- Canadian Pacific (CP) upgraded to Equal Weight from Underweight at Barclays
- Exxon Mobil (XOM) upgraded to Buy from Hold at ISI Group
Unconventional energy finds also come with unconventional risks, but investing in the majors can minimize the risk.
The Jed Clampett days of finding oil -- accidentally in the case of the old Beverly Hillbillies clan leader -- are a distant past. No longer can an oil company find elephant fields in someone's backyard and easily pull the crude out.
To meet rising global energy demand and dwindling conventional supplies, energy companies have been scrambling to find new sources of production. With oil's sustained high prices, the industry has turned to a variety of unconventional sources to meet future demand. From offshore fields in Ghana and Mozambique to oil sands deposits in Canada, these finds have become more profitable. And while political, environmental and financial risks to developing these supplies abound, investors who bet on them -- carefully -- could be handsomely rewarded.
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[BRIEFING.COM] The afternoon session wears on and there hasn't been a lot of change in today's tone. Things are mixed with blue-chip averages underperforming, although the small-cap Russell 2000 (-0.1%) has been unable to hold an earlier gain that had it up as much as 0.6%.
Every sector is in the red at the moment, implying that relative strength at this point is couched more in terms of which sectors are down the least rather than which sectors are up the most.
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