Prediction markets have become a real-time barometer for distressed consumer brands, and traders on Polymarket have historically been quick to list bankruptcy and delisting odds when a household name starts trading below $10. But a fresh sweep of Polymarket this morning turns up something surprising for three of America’s most speculated-about survival stories: Beyond Meat (NASDAQ:BYND), Xerox (NASDAQ:XRX), and JetBlue Airways (NASDAQ:JBLU). None of the three currently has an active bankruptcy or delisting market with meaningful liquidity. That absence is itself a data point, and the resolved earnings markets, sentiment scores, and price action fill in the rest of the picture.

Below is what Polymarket traders have been willing to bet on for each name, paired with the balance-sheet realities driving the speculation.

Beyond Meat: The Crowd Priced 100% Certainty of an Earnings Miss, Then Got Blindsided

Beyond Meat is the clearest case where prediction-market pricing has been directly wired to survival anxiety. Shares closed at $0.68 on July 8, 2026, down 81.0% over the past year and 99.5% over five years, well below the Nasdaq $1 minimum bid threshold that governs delisting risk.

Yet as of this morning, no active Polymarket or Kalshi markets exist for Beyond Meat on bankruptcy, delisting, or survival. What Polymarket has priced are earnings-beat markets, and the pattern is brutal. Ahead of the Q4 2025 report on February 25, 2026, traders drove the “will BYND beat” contract to a 100% implied probability of a miss, and the company delivered a GAAP EPS of −$0.29 versus a −$0.14 consensus, a 107% negative surprise. That market saw $207,486 in trading volume, the highest of any Beyond Meat contract on the platform.

The Q1 2026 contract, which resolved on May 6, 2026, went the other way: traders had priced an 86% implied probability of a miss, but Beyond Meat squeaked out a beat against a −$0.08 consensus. The catch is that liquidity was thin at just $2,253 in volume, so the price signal there should be treated with low confidence.

The fundamentals explain why bankruptcy chatter persists even without a formal market. Q1 revenue fell 15.3% year over year to $58.21 million, and the balance sheet shows $411.6 million in debt against $205.8 million of cash, a stockholders’ deficit of -$21.1 million, and material weaknesses in internal controls. Weighted average shares outstanding ballooned from 76.2 million to 455.3 million, the classic dilution spiral. Composite sentiment reads 37.6, bearish with medium confidence, dragged down by a social score of 22.

Xerox: Zero Polymarket Markets, and a Balance Sheet Screaming for One

Xerox is the most jarring omission. A Polymarket search for XRX-specific bankruptcy or delisting contracts returned no matching markets, and the platform’s dashboard confirms zero active Kalshi or Polymarket contracts on the name. Given the profile, that gap probably reflects retail-trader interest in flashy consumer stories over B2B print equipment, more than any considered read on Xerox’s health.

Shares closed at $2.67 on July 8, 2026, down 24.8% in the past month, 51.0% over the past year, and 88.8% over five years. The Q1 FY26 report, filed April 30, 2026, showed revenue up 26.7% to $1.846 billion on the Lexmark acquisition, but pro forma revenue actually declined 3.7%, and adjusted EPS of −$0.43 missed the −$0.275 consensus by 56.4%.

The leverage picture is the reason traders would want a market here. Total liabilities of $9.373 billion now dwarf shareholders’ equity of $305 million, which collapsed 75.9% year over year. Equipment gross margin cratered to 10.8% from 27.9%, and non-financing interest expense surged to $84 million from $33 million. Q1 free cash flow ran −$165 million. CEO Louie Pastor countered with reaffirmed FY26 guidance for revenue above $7.5 billion, adjusted operating income of $450 million to $500 million, and free cash flow near $250 million, telling investors he is “genuinely optimistic about the future of this business and confident we are closer to an inflection point than the external narrative suggests.”

Sentiment reads 53.84, neutral with low confidence. Insider activity is net selling across 25 transactions. Analysts are bearish and have a $2.75 mean target price. This is the type of setup that Polymarket typically prices, and its absence likely reflects low retail interest rather than a considered read on solvency.

JetBlue: The CEO Denied Bankruptcy Rumors, and Polymarket Is Silent

JetBlue is the name where the disconnect between chatter and market pricing is loudest. The Q1 FY26 earnings summary explicitly notes that bankruptcy speculation had been circulating in the weeks before the CEO publicly reaffirmed the airline’s liquidity position, providing the backdrop for the report. Yet Polymarket has no active bankruptcy or delisting markets on the airline, only resolved earnings-beat contracts.

Those earnings markets tell a coherent story. The Q3 2025 contract with a −$0.42 consensus resolved YES on $12,029 in volume, meaning JetBlue beat that negative bar. The Q1 2026 contract, resolved April 28, 2026, against a −$0.73 street consensus, resolved NO on just $97.30 of volume — effectively an illiquid tape.

The airline reported Q1 adjusted EPS of −$0.87 against a −$0.728 estimate, a 19.51% miss, on revenue of $2.24 billion. Fuel is the key pressure point: Q1 fuel cost averaged $2.96 per gallon, up 15.2% year over year, and Q2 guidance calls for $4.13 to $4.28 per gallon, roughly 75% higher year over year. Total debt is $8.4 billion, and FY26 interest expense is guided at approximately $580 million.

CEO Joanna Geraghty highlighted the JetForward turnaround, which delivered $305 million of incremental EBIT in 2025 against a $290 million target, and targets $310 million in 2026, with $850 million to $950 million cumulative by 2027 and free cash flow turning positive by end of 2027. She emphasized “taking decisive actions to manage what is within our control, including adjusting capacity, optimizing revenue, and maintaining disciplined cost control.”

Markets have listened. JetBlue is the outlier of the three: shares closed at $5.58 on July 8, 2026, up 17.2% over the past month, 22.6% year to date, and 29.5% year over year. Composite sentiment is still 33.44, bearish with medium confidence, and insiders are net buying across 23 transactions.

What the Silence Says

Point-in-time, crowd-sourced odds are only useful when a market exists. For all three names as of this morning, Polymarket offers no live bankruptcy or delisting contracts to point to, and Kalshi is similarly quiet. The resolved earnings contracts are useful backward-looking calibration: Polymarket correctly nailed the Beyond Meat Q4 miss on real liquidity and got a Q1 call wrong on almost none. JetBlue’s Q1 market moved on a hundred dollars of flow, which is not a signal.

The takeaway for readers watching these three names: a missing bankruptcy contract still leaves real risk on the table. Xerox’s $9.37 billion of liabilities against $305 million of equity, Beyond Meat’s sub-dollar tape, and JetBlue’s $8.4 billion debt stack facing a 75% fuel spike remain the fundamental facts. When Polymarket eventually lists survival markets on any of these, the first liquid prints will be worth watching; until then, the balance sheets are doing the talking.

The post What Prediction Markets Say About 3 of America’s Most At-Risk Brands appeared first on 24/7 Wall St..

Although HP (NYSE: HPQ), Intel (NASDAQ: INTC), and Xerox (NASDAQ: XRX) each defined an entire category of American hardware, Wall Street no longer prices them as peers. One ticker has vaulted, one has drifted, and one is fighting for survival at a sub-$500 million market cap. The more useful frame is the IBM template: when a legacy hardware franchise pivots, survivors carry a real product-cycle catalyst, sufficient balance sheet runway, and operating leverage. Lou Gerstner’s 1990s mainframe-to-services rebuild is the yardstick, and only one of these three currently clears it.

Start with the scoreboard. Intel has climbed 470.3% over the past year and 283.7% since June 2023, closing at $128.32 on June 26. HP slipped 7.4% over the past year and 22.7% across three years, ending the same session at $22.88. Xerox has lost 38.3% over the past 12 months and 76.7% across three, finishing at $3.31. The Gerstner question is which move rests on a rebuild and which is noise.

HP: Managed Decline With a Cash Sleeve

HP’s most recent quarter looks clean on the surface. Q2 FY26 revenue of $14.408 billion rose 8.99% year over year and beat consensus by 2.4%, while non-GAAP EPS of $0.86 beat the $0.72 estimate by 20.26%. Personal Systems surged 13%, Commercial PS jumped 14%, and free cash flow swung to $800 million from negative $100 million a year earlier. Management narrowed the full-year non-GAAP EPS band to $2.90 to $3.10.

However, the core franchise still carries mature-market scars. Printing was flat, Consumer Printing dropped 10%, total PC units fell 7%, and stockholders’ equity remained negative at –$144 million. A restructuring program targets roughly $1 billion in run-rate savings by FY2028 with 4,000 to 6,000 job cuts, while $100 million in buybacks and a $0.30 quarterly dividend return cash to shareholders. The thesis is cost discipline and capital return. That profile matches managed decline rather than Gerstner-grade reinvention.

Intel: High-Stakes Reinvention

Intel’s Q1 FY26 earnings report is the closest match to the survivor profile in this group. Revenue of $13.577 billion grew 7.2% and beat by 9.22%, while non-GAAP EPS of $0.29 crushed the $0.0127 consensus estimate. Data Center and AI revenue vaulted 22% to $5.052 billion, and Intel Foundry grew 16% to $5.421 billion, now roughly 40% of total revenue. Non-GAAP gross margin expanded to 41.0% from 39.2%, marking the sixth consecutive quarter above revenue expectations.

The catalyst stack is tangible. A multiyear Google partnership covers Xeon and custom ASIC IPUs, Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8, and a Terafab project lines up SpaceX, xAI, and Tesla. A $5.0 billion NVIDIA equity investment and a U.S. government equity stake backstop the runway, while cash of $17.247 billion, up 92.77% year over year, funds the foundry buildout. CEO Lip-Bu Tan put it bluntly: “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.” The tradeoffs are meaningful: a $4.07 billion Mobileye-related charge drove a $3.73 billion GAAP net loss, foundry remains unprofitable, and capex stays heavy. The profile matches genuine reinvention rather than a capex-cycle trade.

Xerox: Racing the Clock

Xerox is running the abandon-the-old-battlefield script. The Lexmark deal and the ITsavvy and Powerland tuck-ins push the company toward IT and managed services. The balance sheet is the catch. Total liabilities stand at $9.37 billion against just $305 million of shareholders’ equity. Q1 2026 revenue of $1.846 billion rose 26.7% on acquisitions, but pro forma revenue declined 3.7%, and equipment gross margin collapsed to 10.8% from 27.9%, and adjusted EPS of negative $0.43 missed by 56.36%. Free cash flow ran to negative $165 million, and non-financing interest expense surged to $84 million from $33 million on acquisition debt.

CEO Louie Pastor told investors, “We are closer to an inflection point than the external narrative suggests.” The market disagrees. The analyst consensus price target is $2.75, with bearish sentiment, while trailing EPS stands at –$8.34, book value at $2.286, and the forward multiple at 3x. That is a credit-distress profile. The strategy fits the Gerstner playbook on paper. The capacity to execute it fits the Kodak playbook on the filings.

The Ranked Verdict

Measured against the IBM survivor template (product-cycle catalyst, balance sheet capacity, operating leverage), the order is unambiguous.

1. Intel. The only profile here with a genuine AI tailwind, $17.247 billion in cash, NVIDIA and Google ecosystem validation, and margin expansion alongside a structural mix shift into foundry.
2. HP. A disciplined operator with an FCF inflection and steady capital return, but no reinvention engine to anchor the next decade.
3. Xerox. A textbook pivot attempted from a Kodak-shaped balance sheet. Direction is correct, runway is short.

Long term, Wall Street keeps rewarding platform reinvention over hardware nostalgia. The decade-long tape says the same: Intel up 291.8% over a decade, HP up 86.6%, and Xerox down 86.7%. Same battlefield, three very different futures.

The post HP, Intel, and Xerox Are All Chasing the Same Comeback. History Says Only One Survives appeared first on 24/7 Wall St..

The Caesars deal just put a clock on the rest of corporate America. On May 28, 2026, Caesars Entertainment (NASDAQ: CZR) announced a definitive agreement to be acquired by Fertitta Entertainment in an all-cash transaction valued at approximately $17.6 billion, including the assumption of approximately $11.9 billion of Caesars’ outstanding debt. Shareholders take home $31.00 per share in cash, a 49% premium to the unaffected share price as of February 25, 2026, with no financing condition and a go-shop period running through July 11, 2026.

That premium signals opportunity. With credit markets open and sponsors holding dry powder, beaten-down public companies with clean cash flows, recognizable brands, or busted balance sheets are in scope. We screened four cross-sector names that match the take-private profile and ranked them from least likely to most likely to be acquired next.

4. Etsy

Etsy (NASDAQ: ETSY) carries the largest market cap on this list at $6.4 billion, which is the primary reason it ranks last. Marketplace network effects are notoriously hard to leverage in a leveraged buyout (LBO), and Etsy’s stock has already rallied 28.2% over the past year and 22.5% year to date to $67.92, narrowing the gap to the $72.28 analyst target.

Q1 2026 revenue of $631 million beat the $617.31 million estimate, with net income swinging to a profit year over year and marketplace GMS growing 5.5%. Insider activity argues against an imminent deal: 100% of the past 30 days of insider transactions were sales, including a 20,000-share director disposal on May 22 at $60.92 to $62.64. Sponsors do not typically pursue companies where insiders are heading for the exits.

3. Under Armour

Under Armour (NYSE: UAA) trades at $5.87, down 74% over five years. Founder Kevin Plank is back as CEO with a brand reset and a $305 million restructuring plan. Plank told investors, “Our fiscal 2026 performance reflects the ongoing intentional steps we’re taking to reset the business and restore the discipline required to operate as a best-in-class brand.”

The share register is the real signal. Prem Watsa’s group accumulated 1,178,344 Class A shares over three days in mid-May at roughly $5.00, the largest accumulation in the dataset. Forward EPS guidance of $0.08 to $0.12 is thin, but the asset (brand, North American footprint, international momentum at +10%) is cheap at 0.819x EV/revenue. Plank’s Class C share structure complicates a hostile bid, which is precisely what makes a friendly, founder-led take-private feasible.

2. Xerox

Xerox (NASDAQ: XRX) is the most beaten-down name on this list, with a market cap of just $423.7 million and a stock down 86.2% over five years. Q1 2026 revenue of $1.85 billion exceeded expectations of roughly $1.75 billion, helped by the Lexmark acquisition and a $300 million synergy target.

New CEO Louie Pastor framed his priorities as stabilizing revenue, lifting profitability, and reducing leverage. The leverage piece is the catch: total liabilities of $9.37 billion against only $305 million of equity. A sponsor would need debt restructuring as part of any deal. Yet at 0.605x EV/revenue and a 3x forward P/E, with FY26 guided free cash flow of roughly $250 million, the asymmetry is compelling. The stock has already doubled in the past month, hinting that someone is positioning early.

1. Dropbox

Dropbox (NASDAQ: DBX) is the cleanest LBO setup of the four. The math is hard to ignore: $1.0 billion of free cash flow in FY 2025 against $2.521 billion of revenue, with a 32.3% free cash flow margin in Q1 2026 and minimal capex. EV/EBITDA is just 11x against a forward P/E of 9x.

Founder and CEO Drew Houston has already run the buyback equivalent of a leveraged recap, having repurchased $1.7 billion of stock in FY25 and another $366.8 million in Q1 2026, shrinking the share count from 295.7 million to 236.7 million. Shareholders’ equity is negative $2.011 billion, meaning the balance sheet has been engineered for private ownership. Houston told investors, “We delivered a strong quarter, exceeding the high end of our guidance for revenue and operating margin.” Applying the 49% Caesars premium to the current $26.88 share price implies a deal price near $40, well within reach for a sponsor underwriting that cash flow stream.

The Cleanest Setup

Dropbox carries the take-private fingerprint: predictable cash flow, asset-light operations, a founder controlling the cap table, and a balance sheet restructured around debt rather than equity. Watch for a 13D filing from a private equity sponsor, a pause in the buyback program, or telling commentary from Houston on the next earnings call. Because Caesars has a go-shop period running until July 11, 2026, the window is open for taking additional public companies private. With its massive cash flow, Dropbox is almost certainly being evaluated as a takeover target by every major private equity firm on Wall Street.

The post After Caesars Deal, These 4 Struggling Companies Look Ripe for Acquisition appeared first on 24/7 Wall St..

Key Points

• As expected, the Federal Reserve lowered rates by 25 basis points earlier this month.
• Some on Wall Street feel the Fed could pause after another cut in December.
• Passive income is simple: own quality dividends that pay you for doing nothing. Don’t miss out on our brand-new “7 Things I Demand in a Dividend Stock” report. It includes two A++ dividend stocks and how to spot future dividend winners that can put your returns on hyperdrive.

Most dividend investors seek solid passive income streams from quality dividend stocks. Passive income is a steady stream of unearned income that doesn’t require active traditional work. Shared ideas for earning passive income include investments like dividend stocks, bonds, mutual funds, real estate, and additional income-producing side hustles.

The more passive income can help cover costly and rising costs like mortgage, insurance, taxes, and other expenses, the easier it is for investors to put away money for future needs as they build to retirement.

According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.

Investors have a lot to be thankful for because this Thanksgiving, the stock market has been up over 50% over the past two years, making the stretch one of the biggest two-year rallies in decades. With volatility making a big rebound and some inevitable profit taking on the way before the year is out, passive income investors can take advantage of a dip in five of our favorite high-yield companies. All are rated buy at top Wall Street firms, and all five pay 7% and higher dividends.

Why do we cover dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.

Ares Capital

This high-yielding business development company (BDC) pays a massive 8.90% dividend. Ares Capital Corp. (NASDAQ: ARCC) specializes in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle-market companies.

It also makes growth capital and general refinancing. It prefers to invest in companies engaged in basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

The fund will also consider investments in industries such as:

• Restaurants
• Retail
• Oil and gas
• Technology

It focuses on investments in the Northeast, Mid-Atlantic, Southeast, and Southwest regions from its New York office, the Midwest region from the Chicago office, and the Western region from the Los Angeles office.

The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million

The fund invests through:

• Revolvers
• First-lien loans
• Warrants
• Unitranche structures
• Second-lien loans
• Mezzanine debt
• Private high yield
• Junior Capital
• Subordinated debt
• Non-control preferred and common equity.

The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically finds the purchase of stressed and discounted debt positions.

Ares Capital prefers to be an agent and lead the transactions it invests in. The fund also seeks board representation in its portfolio companies.

British American Tobacco

This European giant continues to print money, has a vast product line, and pays a huge 8.65% dividend. British American Tobacco PLC (NYSE: BTI) offers:

• Vapor
• Tobacco heating
• Modern oral nicotine products
• Combustible cigarettes
• Traditional oral products, such as snus and moist snuff

The company offers its products under these brands:

• Vuse
• Glo
• Velo
• Grizzly
• Kodiak
• Dunhill
• Kent
• Lucky Strike
• Pall Mall
• Rothmans
• Camel
• Natural American Spirit
• Newport
• Vogue
• Viceroy
• Kool
• Peter Stuyvesant
• Craven A
• State Express 555
• Shuang Xi

Energy Transfer

This top master limited partnership is a safe way for investors looking for energy exposure and income, as the company pays a massive 7.78% distribution. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.

The company is a publicly traded limited partnership with core operations that include:

• Complementary natural gas midstream
• Intrastate and interstate transportation and storage assets
• Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
• NGL fractionation and various acquisition and marketing assets

Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in all significant U.S.-producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, the company also owns Lake Charles LNG, the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco L.P. (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners L.P. (NYSE: USAC).

Xerox Holdings

The company is not just making copies but delivers a sweet 10.05% dividend. Xerox Holdings Corp. (NASDAQ: XRX) operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally.

The company operates through two segments:

• Print and Other
• FITTLE

The Print and Other segment designs, develops and sells document systems, solutions, and services, as well as IT and software products and services.

The FITTLE segment offers financing solutions for direct channel customer purchases and lease financing to end-users.

It also offers workplace solutions comprising:

• Desktop monochrome, color, and multifunction printers and ConnectKey software
• Digital printing presses and light production devices
• Digital services that support workflow automation, personalization and communication software, content management solutions, and digitization services

In addition, the company provides:

• Graphic communications
• In-plant and production solutions
• FreeFlow, a software solution for the automation and integration of processing of print jobs comprising file preparation
• Final production and electronic publishing and IT services
• End-user computing devices, network infrastructure, and communications technology
• Technology product support, professional engineering, and commercial robotic process automation
• Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie, and invests in startups.

Western Union

While the demand for telegrams is long gone, the demand to transfer money is not, and this famous company has grown as a result. It pays a strong 8.42% dividend. Western Union Co. (NYSE: WU) provides worldwide money movement and payment services. The company operates in two segments.

The Consumer-to-Consumer segment facilitates international cross-border and intra-country money transfers, primarily through a network of retail agent locations, websites, and mobile devices.

The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium-sized enterprises, other organizations, individuals, and foreign currency forward and option contracts.

It also offers bill payment services that facilitate payments from consumers to businesses and other organizations, as well as offers money orders and other services.

Four Contrarian Ultra-High-Yield Stocks Pay Passive Income Dividends as High as 15%

The post This Thanksgiving, Feast on These 5 Passive Income Favorites Yielding 7% or More appeared first on 24/7 Wall St..

24/7 Wall Street Insights

• NASDAQ was founded in 1971 as an automated quote stock exchange alternative to the New York Stock Exchange, and now has more listings than the NYSE.
• China’s announcement of an $850 billion sovereign bond sale will likely keep it on the sidelines for future US Treasury auctions, resulting in depressed pricing and reduced US dollar buying power.
• With dividend stocks one of the few passive income options that has widespread access and appeal to both small and large investors, NASDAQ dividend stocks are worth consideration as potential portfolio additions.

The First Electronic Stock Exchange

Launched in 1971, the NASDAQ (National Association of Securities Dealers Automated Quotations) market was the first electronic stock market. In roughly 20 years, its share of the overall US stock market had grown to 46%. As an alternative to the more expensive NY Stock Exchange, the NASDAQ exchange attained credibility and parity with the NYSE, thanks to the success of tech companies like Apple, Microsoft, and Intel, among others. As of the start of 2024, NASDAQ contained 2.500 listed stocks, vs. 2,272 stocks for the NYSE.

NASDAQ Dividend Stocks

A majority of NASDAQ stocks are high growth oriented, being in sectors like technology, media, biotech, or comparable industries. Reinvestment of profits to fuel more growth has been the norm for decades. Nevertheless, there are a few hundred dividend paying NASDAQ stocks in existence. Some of the yields listed below are based on market price at the time of this writing, and the highest yielding ones are likely unsustainable or temporary, due to a market selloff that will correct in the near future.  

The List of 15

The following list contains some of NASDAQ’s highest dividend yields. REIT = Real Estate Investment Trust. BDC – Business Development Company

Why Dividend Stocks?

As a source of passive income, dividend stocks have a number of attractive features:

• Low admission cost  (unlike investments in real estate or other businesses)
• Wide Diversification of Industry (managing risk with a portfolio mix of various sector stocks)
• Market Liquidity Ease (T+1 is now standard) 
• Risk Tolerance ranges (conservative investors and high rolling gamblers can both find stocks they like)
• Ease of Replaceability (if one stock receives adverse news, it can easily be replaced by another stock with a comparable yield)

Passive Income Needs – Weaker US dollars

China recently announced it was selling 6 trillion yuan in government bonds (about US$850 million) to serve as its own quantitative easing and for government coffers. While there are potential political consequences from China dumping a chunk of its huge US Treasury portfolio  on the global markets, it is unlikely they will be a big buyer in the future, as they would be a de facto rival seller. 

Future US Treasury bond auctions, lacking the buying clout of China, will likely face a discount, and the diminished buying power value of the US dollar will fall commensurately, elevating inflation. With many US household budgets already stretched to the breaking point, these families will be hard pressed to find other income streams, passive or via extra employment, to make ends meet.

For those families with investable assets, they may find that dividend stocks are among the best options available.

The post These 15 Stocks Are Among the Top Dividend Payers on the NASDAQ appeared first on 24/7 Wall St..

Recognizing that one day “Magnificent 7” stocks like Apple were once small cap stocks (those with market caps between $250 million and $2 billion), FTSE Russell, a subsidiary of the London Stock Exchange, created the Russell 2000  Index. Composed of the lower market-cap  66% of the Russell 3000, it is considered the small-cap stock equivalent of the S&P 500 as a benchmark for analysts. 

By being market-cap weighted and based purely on math, rather than via committee, like with the S&P 500, the Russell 2000 is an unbiased gauge of the top stocks in the small-cap arena. The greater trading volatility and roller-coaster peaks and valleys often exhibited by small-cap stocks are certainly a part of a number of the Russell 2000 constituents. 

24/7 Wall Street Insights

• The Russell 2000 index represents the top small-cap (under $2 billion) US exchange traded companies.
• Small-cap companies often experience fast growth and more volatile trading than large-cap S&P 500 companies.
• Dividend stocks can be a good source of passive income for many investors.
• Global de-dollarization, led by BRICS, will lead to more overseas dollars coming back to the US, thus hiking inflation., and making passive income even more crucial in the future.

Dividends

While a few hundred Russell 2000 stocks pay a dividend, the vast majority that pay high dividends (over 7%) are mostly Real Estate Investment Trusts (REIT). This is mostly due to: 

1. The majority of independent REITs having a market cap of under $2 billion due to industry focus,
2. In order for a REIT to trade publicly, it must register with the SEC and agree to remit 90% of its profits to shareholders. Thus the more successful REITs will inevitably be more profitable, thus paying more dividends. 

Another benefit of REITs, although on a case-by-case basis, is that some REITs pay dividends monthly, rather than quarterly. 

The list of 15:

The below 15 stocks are the highest yielding Russell 2000 stocks based on market price at the time of this writing. As one might expert, the industry sector of high-yielding stocks is dominated by REITs. The only two exceptions are digital and printing company Xerox and B&G Foods, Inc. 

Passive Income Needs – Weaker US dollars

Recent news from BRICS (Brazil, Russia, India, China, South Africa) has accelerated the de-dollarization of the global economy, with member nations now making arrangements to settle international cross-border trade transactions with national currencies. As a result, international dumping of US Treasury bonds is likely to escalate, as the need to hold US dollars will continue to diminish. 

The deluge of dollars coming back to the US will inevitably hike inflation again. The latest CPI news also noted that jobless claims were also rising, along with inflation. The loss of buying power and reduced ability to get extra employment will make acquiring passive income an even greater imperative.

For those families with investable assets, they may find that dividend stocks are among the best options available.

Why Dividend Stocks?

As a source of passive income, dividend stocks have a number of attractive features:

• Low entry ticket price  (unlike investments in real estate or other businesses)
• Diversification of Industry (managing risk with a portfolio mix of various sector stocks)
• Market Liquidity (T+1 is now standard), vs. illiquid real estate or private businesses
• Volatility ranges (conservative investors and high rolling gamblers can both find stocks they like)
• Replaceability (if one stock receives adverse news, it can easily be replaced by another stock with a comparable yield)

24/7 Wall Street has a gigantic database of dividend stocks to suit all levels of risk tolerance, and has published numerous past articles highlighting them. The sample collections feature more than sufficient dividend stocks of all types to suit the criteria of practically any market-based investor’s criteria.

The post These 15 Stocks Are Among the Top Dividend Payers in the Russell 2000 appeared first on 24/7 Wall St..

24/7 Wall St. Insights

• Dividend stocks could be poised to trade higher as interest rates fall.
• September is traditionally a bad month for the stock market.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab this free report today: Access 2 legendary, high-yield dividend stocks Wall Street loves.

Dividend stocks are a favorite among investors for good reason. They provide a steady income stream of passive income and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.

Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.

One solid way to generate total return gains is to find companies that are off the investing radar but have enormous upside potential. We screened our 24/7 Wall St. technology research universe, looking for companies that paid high-yield dividends that were virtually unknown.

Five companies emerged, and while one or two may ring a bell, they are likely not front and center with most growth and income investors. All make sense for those with a higher risk tolerance looking for attractive dividend stocks somewhat hidden away from the proverbial big boys in the technology space.

Why do we cover dividend stocks?

Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Autohome

Offering a big 6.84% dividend and trading at a very reasonable 11.6 times earnings estimates, this company could be a big winner. Autohome Inc. (NYSE: ATHM) operates as an online destination for automobile consumers in the People’s Republic of China.

The company delivers interactive content and tools to automobile consumers through its websites, autohome.com.cn, che168.com, and ttpai—Cn on PCs, mobile devices, mobile applications, and mini apps.

It provides media services, including automaker advertising services and regional marketing campaigns, and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services.

The company offers Autohome Mall, an online transaction platform, and a bidding platform for used automobiles. It also collects commissions for facilitating auto-financing and insurance product transactions on its platform.

ChipMOS Technologies

Trading at just over 15 times estimated earnings and offering a solid 4.64% dividend, this could be a total return home run. ChipMOS Technologies Inc. (NASDAQ: IMOS) engages in the research, development, manufacture, and sale of high-integration and high-precision integrated circuits and related assembly and testing services in:

• The People’s Republic of China
• Taiwan
• Japan
• Singapore
• Elsewhere

It operates through the Testing, Assembly, Testing, and Assembly for LCD, OLED, and Other Display Panel Driver Semiconductors, Bumping, and Other segments.

The company provides a range of back-end assembly and testing services, including:

• Engineering tests
• Wafer probing
• Final test of memory and logic/mixed-signal semiconductors
• Leadframe-based and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors
• Gold bumping
• Testing and assembly services for LCD, OLED, and other panel display driver semiconductors

Its semiconductors are used in personal computers, office automation consumer electronics, and communications equipment applications.

Himax Technologies

After trading sideways for two years, the shares look ready to explode higher and pay shareholders a dependable 4.91% dividend. Himax Technologies Inc. (NASDAQ: HIMX) is a fabless semiconductor company that provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States.

The company operates in two segments:

• Driver Integrated Circuits
• Non-Driver Products

It offers display driver integrated circuits (ICs) and timing controllers that are used in:

• Televisions
• PC monitors
• Laptops
• Mobile phones
• Tablets
• Automotive
• ePaper devices

The company also provides:

• Automotive IC solutions, including traditional driver ICs
• Advanced in-cell touch and display driver integration
• Large touch and display driver integration
• Local dimming timing controllers
• Active matrix organic light-emitting diode (AMOLED) solutions, including AMOLED drivers, timing controllers, and touch controller ICs.

In addition, it provides:

• Application-specific IC services
• Liquid crystal on silicon and micro-electro-mechanical system products
• Power ICs
• Complementary metal oxide semiconductor image sensor products
• Wafer-level optics products
• 3D sensing products
• Ultralow power WiseEye smart image sensing products

The company markets its display drivers to panels, mobile device modules, and end-use product manufacturers.

Qifu Technology

Sporting a solid 4.45% dividend and trading at a cheap 6.3 times estimated 2024 earnings, this company looks ready to break out to new 52-week highs. Qifu Technology Inc. (NASDAQ: QIFU) and its subsidiaries operate a credit-tech platform under the 360 Jietiao brand in the People’s Republic of China.

The company provides credit-driven services that:

• Match borrowers with financial institutions to conduct customer acquisition
• Initial and credit screening
• Advanced risk assessment
• Credit assessment
• Fund matching
• Other post-facilitation and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service.

It offers SME owners e-commerce, enterprise, and invoice loans. It serves financial institutions, consumers, and small- and micro-enterprises.

Xerox

This company is not just making copies, and to many, it is really just a verb, but it still delivers a sweet 8.83% dividend. Xerox Holdings Corp. (NASDAQ: XRX) operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and elsewhere.

The company operates through two segments:

• Print and Other
• FITTLE

The Print and Other segment designs, develops and sells document systems, solutions, services, and IT and software products and services.

The FITTLE segment offers financing solutions for direct channel customer purchases and lease financing to end-users.

It also offers workplace solutions comprising:

• Desktop monochrome, color, and multifunction printers and ConnectKey software
• Digital printing presses and light production devices
• Digital services that support workflow automation, personalization and communication software, content management solutions, and digitization services

In addition, Xerox provides:

• Graphic communications
• In-plant and production solutions
• FreeFlow, a software solution for the automation and integration of processing of print jobs comprising file preparation
  Final production and electronic publishing
• IT services
• End-user computing devices, network infrastructure, and communications technology
• Technology product support, professional engineering, and commercial robotic process automation

Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie, and invests in startups.

Grab the 6 Highest-Yielding S&P 500 Stocks Before Interest Rates Are Slashed

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24/7 Wall St. Insights

• High-yield dividend stocks will be in big demand as interest rates come down.
• There is a good chance that rates will drop 2% or more from current levels by 2026.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock,” plus get our two best dividend stocks to own today. Access 2 legendary, high-yield dividend stocks Wall Street loves.

Investors love dividend stocks, especially the high-yield variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.

Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.

Many of the top dividend stocks that we cover have moved higher in price over the last six months as investors anticipating the rate cut cycle, combined with the bond market doing the same and pushing Treasury yields lower, have consistently bought the best stocks like Altria Inc. (NYSE: MO). When dividend stocks move higher in price, the yield on the stocks goes down.

We screened our 24/7 Wall St. high-yield dividend stock database and found two companies that everybody knows, that have been around forever that pay shareholders big dividends, and seemingly have been totally forgotten. Both look like steals at current trading levels.

Why do we cover dividend stocks?

Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Xerox

This company is not just making copies and delivers a sweet 9.27% dividend. Xerox Holdings Corp/ (NASDAQ: XRX), together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and elsewhere.

The company operates through two segments,

• Print and Other
• FITTLE

The Print and Other segment designs, develops, and sells document systems, solutions, and services, as well as IT and software products and services.

The FITTLE segment offers financing solutions for direct channel customer purchases; and lease financing to end-users.
It also offers:

Workplace solutions comprising:

• Desktop monochrome, color, and multifunction printers, and ConnectKey software
• Digital printing presses and light production devices; and digital services that support workflow automation, personalization and communication software, content management solutions, and digitization services

In addition, the company provides:

• Graphic communications
• In-plant and production solutions
• FreeFlow, a software solution for the automation and integration of processing of print job comprising file preparation
• Final production and electronic publishing; and IT services
• End-user computing devices, network infrastructure, and communications technology
• Technology product support, professional engineering, and commercial robotic process automation

Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie, and it invests in startups.

Western Union

While the demand for telegrams is long gone, the demand to transfer money is not, and this famous company has grown as a result. It pays a strong 7.97% dividend. The Western Union Co. (NYSE: WU) provides worldwide money movement and payment services.

The company operates in two segments:

• Consumer-to-Consumer
• Business Solutions

The Consumer-to-Consumer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations and through websites and mobile devices.

The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium-size enterprises, other organizations, individuals, and foreign currency forward and option contracts.

It also offers bill payment services that facilitate payments from consumers to businesses and other organizations, as well as offers money orders and other services.

Five Highest-Yielding Dividend Aristocrats Can Explode Higher as Rates Cuts Begin

The post 2 Legendary Stocks That Pay High-Yield Dividends and Have Been Totally Forgotten appeared first on 24/7 Wall St..

You might not know the name Ursula M. Burns, but she has impacted your life whether you know it or not. Here is everything you need to know about this woman who went from the NYC projects to a CEO on the Fortune 500.

#1 First Black Woman CEO

 “I’m a black lady from the Lower East Side of New York. Not a lot intimidates me.”

Ursula M. Burns was the first Black woman to be a CEO of a Fortune 500 company. She was the CEO of Xerox (NASDAQ:XRX) and VEON, and served on the board of directors of Uber, American Express, and ExxonMobil and is currently the Non-Executive Chairwoman of Teneo.

#2 Integrum Holdings

Burns co-founded Integrum Holdings and led the White House National Program on STEM under President Barack Obama until 2016. And in 2014, she was the 22nd most powerful woman in the world.

#3 Family and School

“I’ve had many mentors, but the one that has the most impact was my mother.”

Burns was born in New York City in 1958 to a Panamanian immigrant single mother. She grew up in the Baruch House, which was a housing project. She attended an all-girls Catholic school, Cathedral High School, and then earned her undergrad in mechanical engineering in 1980 at Brooklyn Polytechnic Institute.

#4 Columbia University

“Dreams do come true, but not without the help of others, a good education, a strong work ethic, and the courage to lean in.”

An internship at Xerox funded her master’s degree from Columbia University in 1981. After the year-long internship, she officially joined the company after graduating from Columbia.

#5 Career Beginnings

Burns started out as a product developer. By 1990 she accepted an offer to be Senior Executive Wayland Hick’s Executive Assistant. After nine months, she then became Chief Executive Paul Allaire’s Executive Assistant.

#6 VP at Xerox

By 1999 Burns was the Vice-President for Global Manufacturing of Xerox. She was promoted in 2000 to Senior Vice President of Corporate Strategic-Services. By 2007, she was the President of Xerox, and then in 2009, she was CEO. In 2010, she became Vice-Chair of the President’s Export Council.

#7 Xerox Career

“Admiration takes on a whole new level when you appreciate just how complex it is to run a modern business.”

Burns was also the first woman to follow another CEO of a Fortune 500. From 2009 to 2016, she acquired Affiliated Computer Services, was named an International Fellow of the Royal Academy of Engineering, and split Xerox into two independent companies: Conduent and Xerox. She was appointed as chairwoman of Conduent.

#8 Chair Positions

Burns left Xerox in 2017 and joined Teneo as a Senior Advisor. From 2017 to 2020, she was chairwoman at ExxonMobil Corporation, Datto Inc., Boston Scientific, the National Association of Manufacturers, American Express Corporation, the MIT Corporation, Nestle, the University of Rochester, FIRST, the RUMP Group, and the Rochester Business Alliance. She was elected Chairman and then CEO of VEON in 2018.

#9 Leadership Legacy

“This old notion that work is drudgery is nonsense. Most days, even back when Xerox was under siege, I could not wait to get to the office.”

By 2020, she was providing leadership counsel to the Ford Foundation, the Mayo Clinic, the Metropolitan Museum of Art, and more. She was appointed to a position on the Board of Directors of Waystar and remained on the boards of IHS and Endeavor Group.

#10 Published Memoir

“I don’t want to overemphasize this, but not a day goes by when I don’t think about my mother and what she would think about what I just did. I often adjust my approach.”

In 2021, she published a memoir entitled, Where You Are Is Not Who You Are: A Memoir. In 2022, she was Vice-Chair of the U.S. Department of Commerce’s Advisory Council on Supply Chain Competitiveness.

#11 Marriage and Life

Burns married fellow Xerox employee, Lloyd Bean in 1991. They raised two kids. They both attended MIT. Her husband passed away in 2019. Regarding motherhood and family life, she said, “You don’t have to be at every volleyball game. We can’t guilt ourselves.”

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24/7 Wall Street Insights

• An anticipated interest rate cut by the Federal Reserve to help the troubled real estate market will likely hike inflation further.
• Among the options for generating additional income, dividend stocks for those with investable assets may be the solution. 
• For investors seeking dividends, click here for a free report on two high dividend stocks. 

Peter Schiff is an internationally acclaimed economist who is unafraid to buck political convention in calling out the truth. He has been proven correct on numerous instances over the past decades with regard to fiat currency, inflation, employment numbers, and a host of other economic statistics. Schiff is especially adept at identifying discrepancies and intentional misrepresentations.

In particular, he recently cited how the economy is measured in 2024 vs. in 1994 as a reason for why the current employment and inflation statistics are not reflected in the real world, which is  clearly still in the financial doldrums.. 

Schiff, along with numerous other economists, anticipate that the Federal Reserve will attempt a rate cut to give the real estate market, which is struggling with high mortgage rates, a boost, going into the 2024 elections. However, they all also concur that a rate cut will further devalue the dollar and stoke higher inflation.

Millions of American households in every state are barely able to make ends meet, and are piling up credit card debt at a dangerous pace. Thus, the opportunities for additional employment that will solve the dilemma are slim. 

Dividend Stocks As the Most Versatile Asset Class For Investors

24/7 Wall Street has an extensive database of stocks from a wide range of industries with a broad spectrum of characteristics. The following list of seven stocks can be obtained, based on market price at the time of this writing, for $10,000 each, and would generate annual passive dividend income of over $5,000. Some of the names may be familiar; others more obscure. Nevertheless, an average annual yield north of 7% is considered on the “high-yield” side, so these or similar stocks are worth consideration from anyone seeking passive dividend income. 

Xerox Holdings Corporation

Stock #1 : Xerox Holdings Corporation (NASDAQ: XRX)

Yield: 9.34%

Shares for $10,000: 935.45

Annual Dividend Amount: ~$934.00

One clue as to the ubiquity of a company’s products or services is when its name becomes a verb. Some examples include “Google” for search engines and “Bloomberg” for messages among bond traders. In an earlier age, “Xerox” was synonymous with photocopying on paper. 

Today, Xerox Holdings has transformed itself into a global company. It supplies print, IT and other digital solutions and support services for office applications. The company has also expanded into a range of software, communication, and robotic automation  products and services.

While its 9.34% dividend is certainly attractive, it should be noted that Xerox has been undergoing restructuring. In May, its Board of Directors was revamped with 6 new members,  including executive management officers from Verizon, Mastercard, Dell, and other stalwarts. Analysts anticipate that Xerox will once again be profitable in the next 12 months, and its price target range is +90% on the bullish side and +35% on the bearish side. 

BCE Inc.

Stock #2 :  BCE Inc. (NYSE: BCE)

Yield: 9.01%

Shares for $10,000: 225.8

Annual Dividend Amount: ~$901.00

Headquartered in Quebec City, Canada, BCE Inc., better known as Bell Canada, is the Canadian cousin of US Bell legacy companies Verizon Communications, AT & T, and Lumen. All of these companies trace their origins to Alexander Graham-Bell, inventor of the telephone. Founded in 1880, BCE is a Canadian utility telecom behemoth catering to individuals, businesses, and government entities in both French and English..

BCE’s Bell Communication and Technology division provides both wireless and hardwired communications, internet and cloud services, satellite tv, and related products. Its Bell Media division handles broadcast, specialty, and pay-TV, digital media and streaming services, radio broadcasting, and advertising services, 

From an investor perspective, BCE has consistently paid its dividends since 1983, with increases every quarter since 2015. BCE recently announced it had acquired Stratejm to beef up its cybersecurity and CloudKettle for its Salesforce AI integration capabilities. 

Note: as BCE is a Canadian company, the actual dollar value of the dividends that US investors collect will change with exchange rates.  US investors owe Canadian taxes on the dividends, which can generally be credited back when filing tax returns. This will hold true for any other Canadian company dividend stocks owned by US investors.

Walgreens Boots Alliance Inc.

Stock #3 :  Walgreens Boots Alliance Inc. (NASDAQ: WBA)

Yield: 8.70%

Shares for $10,000: 869.5

Annual Dividend Amount: ~$870.00

Walgreens in the US and Boots in the UK are two of  the most ubiquitous drugstore, cosmetic, and personal care products retail chains operating today. With 8,000 outlets, and 9 million daily customers, Walgreens Boots Alliance is a huge international enterprise, as it also has retail outlets or subsidiaries in Ireland, Germany, Thailand, Mexico, and Chile. 

Walgreens Boots stock has taken a recent price hit due to lowered earnings per share guidance, which is why the yield is currently high. The primary reason has been the price squeezes being imposed between pharmacies and health insurers by the benefit managers. Unlike rival CVS, for example, Walgreens Boots does not own an in-house benefits management company.  

With new CEO Tim Wentworth, Deerfield, IL based Walgreens Boots has strong upside potential, according to a number of analysts. The announcement of underperforming stores and streamlining aspects of its US healthcare portfolio to address the benefit manager issue was met with positive response. Walgreens Boots has a healthy cash position, with $605 million in operating cash flow and $334 million in free cash flow. 

As of Q1 2024, 41 hedge funds presently have investments in Walgreens Boots, up from 31 at the end of 2023. Prior to 2024, the company had 47 years of continual growth; Wentworth’s initiatives are expected to return Walgreens Boots to that trajectory. 

Enbridge, Inc.

Stock #4 :  Enbridge, Inc. (NYSE: ENB)

Yield: 7.43%

Shares for $10,000: 277

Annual Dividend Amount: ~$743.00

Headquartered in Calgary, Canada, Enbridge, Inc. is a midstream company energy infrastructure company with 5 separate divisions:

• Liquids Pipelines – Liquids Pipelines handles crude oil and liquid hydrocarbons transport and management of pipelines and terminals within Canada and the US.
• Gas Transmission and Midstream – This division invests in and manages natural gas pipelines and processing facilities.
• Gas Distribution and Storage – Tanker and delivery of natural gas utility operations throughout Ontario and Quebec to retail, commercial and industrial customers.
• Renewable Power –  This is the Green power division in charge of North American solar, wind, geothermal, waste heat recovery, and transmission assets. 
• Energy Services – This department provides logistics services and physical commodity marketing to energy producers, refiners, and other customers. 

Founded in 1949, Enbridge, Inc.has a dividend record stretching for almost 7 decades, while raising payouts for almost 30 years. Midstream companies are essential for the energy supply chain, since distribution to end users is where the true value of energy assets are realized. Through its Mainline and Express pipelines, Enbridge transports 3 million barrels of crude daily.  This allocation accounts for almost 63% of the Canadian crude oil production transported to the U.S. annually.

Enbridge, Inc. has recently been reaching out to Canada’s Indigenous tribes to include them in new renewable energy projects. The Seven Star Energy project  with Six Nations Energy Development (an Indigenous tribe consortium) announced a 200 MW wind power project in Saskatchewan. It is anticipated to supply emissions-free clean power to over 100,000 households. Six Nations will acquire a minimum 30% interest, giving the tribes a stable income stream. 

Vector Group Ltd.

Stock #5 :  Vector Group Ltd. (NYSE: VGR) 

Yield: 7.21%

Shares for $10,000: 901.7

Annual Dividend Amount: ~$721.00

While many holding companies involved in disparate business divisions may attempt to create internal synergies to maximize resources, such is not always a given. Case in point: smoking indoors at workplaces, restaurants or bars has been banned in 38 states. Miami headquartered Vector Group Ltd., a $1.7 billion market cap company with a primary component subsidiary founded in 1873, is ironically focused on those two sectors – tobacco and commercial real estate. 

On the tobacco side, Vector Group owns Liggett Group, the 4th largest cigarette company in the US, and a significant player in the discounted cigarette market. Its brands include: 

• Montego
• Eagle 20s
• Grand Prix
• Liggett Select
• Eve
• Pyramid
• USA

Additionally, Vector Group also manufactures private brands. Vector Tobacco operates out of its cigarette factory in North Carolina. 

For real estate, Vector Group’s New Valley LLC owns 23 large real estate properties, predominantly residential condominiums  in Manhattan. There is also a Times Square Marriott Hotel, The Park Lane Hotel on Central Park South, resorts in Bermuda and St. Barthelemy, and mixed use properties in Hollywood and Milan, Italy. Before spinning it off as a separate public company in 2021, Vector Group owned 100% of top NY real estate brokerage firm Douglas Elliman (NYSE: DOUG).

Although overall smoking rates are diminishing, the market is still huge. Liggett’s Montego is still the best selling discount cigarette brand in the US. Ian Zaffino of Oppenheimer rates Vector Group stock a “buy” and his price target indicates a +35-40% increase over current market price. Earnings forecasts anticipate higher earnings per share for 2024 year end, based on current trends. 

As Vector Group’s earnings continue to grow, investors attracted by the dividend should have a degree of comfort that barring any major earnings drops, the current 7.21% rate is sustainable. 

The Bank of Nova Scotia

Stock #6 :  The Bank of Nova Scotia (NYSE: BNS)

Yield: 6.61%

Shares for $10,000: 212.45

Annual Dividend Amount: ~$661.00

Founded in 1832, The Bank of Nova Scotia, also operating as Scotiabank, has a $57.85 billion market cap and is the third largest bank in Canada. With main offices in Toronto, Scotiabank’s international reach extends south to the US, continues down to Mexico, Colombia, Central America, Peru, Chile, and the Caribbean. 

From a dividend investor’s perspective, it might be heartening to know that Bank of Nova Scotia’ unbroken streak of dividend payouts started in 1833. As with Enbridge, Inc. Canadian company dividend payouts are subject to Canadian taxes, which are subject to reimbursement as a credit  by the IRS for US taxpayers, and are waived when paid into an IRA or other retirement account.  

Universal Corporation

Stock #7 :  Universal Corporation (NYSE: UVV) 

Yield: 6.61% 

Shares for $10,000: 203.9

Annual Dividend Amount: ~$661.00

Returning to the topic of tobacco from the supply chain angle, companies with strong cigarette brands, like Altria Group’s (NYSE: MO) Marlboro and British American Tobacco plc’s (NYSE: BTI) Gitanes don’t grow and harvest their own tobacco. So where do they get their supply?

The answer to that question is Richmond, VA based Universal Corporation, which sources, procures, processes, stores, and distributes various tobacco types, such as flue-cured, oriental leaf, burley, and dark air-cured. Other services include custom blending, physical and chemical testing, liquid nicotine extraction, manufacturing with reconstituted leaves, and other tobacco processing specialties.

From an investor’s viewpoint, Universal Corporation has a 54 consecutive year streak of dividend increases. Its current 10.26% price to earnings ratio is roughly 20% below the industry standard, indicating that Universal Corporation has significant upside potential. 

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24/7 Insights

• Stocks that pay dividends offer the potential for dependable passive income streams.
• Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500.
• Access 2 legendary, high-yield dividend stocks Wall Street loves.

Dividend stocks are a favorite among investors for their dual benefits, steady income stream, and the potential for significant total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time. In simpler terms, it’s the sum of an investment or portfolio’s income and stock appreciation.

For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.

When you start building a portfolio of stocks, the most important ingredient for success is to get started early. So, regardless of how much money you begin with, if you continue to add to the pot and reinvest your dividends to buy more shares, there is a very good chance for long-term success. 

We screened our 24/7 Wall St. dividend stock database, looking for companies that pay dependable dividends that also can supply some serious total return if they trade higher over time. We found five that look like great ideas, and all are priced under $15, if you have $1,000 to invest now. All five are rated buy at top Wall Street firms. 

Amcor

This is a very off-the-radar idea, but it makes sense as the company produces products that are always needed, and it pays a robust 5% dividend. Amcor PLC (NYSE: AMCR) manufactures and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions.

The company operates through two segments:

• Flexibles
• Rigid Packaging

The Flexibles segment provides flexible and film packaging products in food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries.

The Rigid Packaging segment offers rigid containers for a range of beverage and food products, including:

• Carbonated soft drinks
• Water
• Juices
• Sports drinks
• Milk-based beverages
• Spirits
• Beer
• Sauces
• Dressings
• Spreads
• Personal care items
• Plastic caps for various applications.

The company sells its products primarily through its direct sales force.

Antero Midstream

Trading under $15, this very well-run company offers a huge total return package and a hefty 6.19% dividend. Antero Midstream Corp. (NYSE: AM) owns, operates, and develops midstream energy assets in the Appalachian Basin.

It operates in two segments:

• Gathering and Processing
• Water Handling

The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources’ wells in West Virginia and Ohio.

The Water Handling segment delivers fresh water from sources, including the Ohio River, local reservoirs, and various regional waterways; uses water handling systems to transport flowback and produced water; and offers pumping stations, water storage, and blending facilities. 

Barings BDC

This business development company is an industry leader and pays a massive 11.34% dividend. Barings BDC Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company elected to be treated as a business development company under the Investment Company Act 1940.

It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments, and senior secured private debt investments in private middle-market companies operating across various industries.

The company specializes in:

• Mezzanine
• Leveraged buyouts
• Management buyouts
• ESOPs
• Change of control transactions
• Acquisition financings
• Growth financing
• Recapitalizations in lower-middle market, mature, and later-stage companies

It invests in manufacturing and distribution, business services and technology, transportation and logistics, and consumer products and services. It invests in the United States. And it invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor-backed.

KeyCorp

This top regional player is very cheap at current levels for investors looking at financials and pays a big 5.27% dividend. KeyCorp. (NYSE: KEY) operates as the holding company for KeyBank National Association, which provides various retail and commercial banking products and services in the United States.

It operates in two segments:

• Consumer Bank
• Commercial Bank

The company offers various deposits, investment products, and services to individuals and small and medium-sized businesses including:

• Commercial leasing
• Investment management
• Consumer finance
• Personal finance and financial wellness
• Student loan refinancing
• Mortgage and home equity lending
• Credit card
• Treasury
• Business advisory
• Wealth management
• Asset management
• Cash management
• Portfolio management
• Trust and related services

It also provides a suite of banking and capital market products, such as:

• Syndicated finance
• Debt and equity capital market products
• Commercial payments
• Equipment finance
• Commercial mortgage banking
• Derivatives,
• Foreign exchange
• Financial advisory, and public finance
• Commercial mortgage loans to consumer, energy, healthcare, industrial, public sector, real estate, and technology sectors for middle market clients.

In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services.

5 Dividend Kings to Buy Now for Dependable Retirement Passive Income

Xerox

This company is not just making copies and delivers a sweet 7.26% dividend. Xerox Holdings Corp. (NASDAQ: XRX)  together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally.

The company operates through two segments:

• Print and Other
• FITTLE

The Print and Other segment designs, develops, and sells document systems, solutions, and services, as well as IT and software products and services.

The FITTLE segment offers financing solutions for direct channel customer purchases, as well as lease financing to end-users.

It also offers:

• Workplace solutions comprising desktop monochrome, color, and multifunction printers, and ConnectKey software
• Digital printing presses and light production devices; and digital services that support workflow automation, personalization and communication software, content management solutions, and digitization services

In addition, the company provides:

• Graphic communications
• In-plant, and production solutions
• FreeFlow, a software solution for the automation and integration of processing of print jobs, comprising file preparation
• Final production, and electronic publishing; and IT services
• End-user computing devices, network infrastructure, and communications technology
• Technology product support, professional engineering, and commercial robotic process automation

Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie, and it invests in startups.

∴

The post 5 Smartest Dividend Stocks to Buy With $1000 Right Now appeared first on 24/7 Wall St..

24/7 Insights

• Dividend stock increases the total return potential for investors
• Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%.
• Access 2 legendary, high-yield dividend stocks Wall Street loves

Dividend stocks are a favorite among investors for good reason. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time. 

In simpler terms, it’s the sum of income and stock appreciation. This means dividend stocks can boost investment success by delivering regular income and capital appreciation.

For younger investors or those on a tight budget, investing to generate consistent passive Income can be daunting because many top dividend stocks trade anywhere from $25 to over $100 per share. Realizing any significant return on investment can be challenging with a small investing capital base of $1000.

We screened our 24/7 Wall St. technology stock  database, looking for solid, lower-priced stocks that pay dependable dividends that investors can purchase and start to generate positive total returns.

Why are we covering this?

Investing at any age requires a starting point, and many individuals have limited funds to dedicate to the stock market at the beginning of their investment journey. If that is true, looking for stocks that have consistently paid dividends over the years but are lower priced than large-cap blue-chip companies makes sense. 

ASE Technology

While perhaps off-the-radar, this stock offers investors massive total return potential and a 5.43% dividend. ASE Technology Holdings Company Ltd. (NYSE: ASX) together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally.

The company develops, constructs, sells, leases, and manages real estate properties:

• Produces substrates; 
• Offers information software
• Equipment leasing
• Investment advisory
• Warehousing management services
• Commercial complex, after-sales, and support services
• Manages parking lot services

The company also:

• Processes and sells computer and communication peripherals
• Electronic components
• Telecommunications equipment, and motherboards
• Imports and exports goods and technology

Himax Technologies

This is a micro cap technology company with solid upside potential and a 4.35% dividend. Himax Technologies Inc. (NASDAQ: HIMX) is a fabless semiconductor company that provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States.

The company operates in two segments:

• Driver IC
• Non-Driver Products

It offers display driver integrated circuits (ICs) and timing controllers for:

• Televisions
• PC monitors
• Laptops
• Mobile phones
• Tablets
• Automotive
• ePaper devices
• Industrial displays

The company also provides automotive IC solutions, including traditional driver ICs; advanced in-cell touch and display driver integration; large touch and display driver integration; and local dimming timing controllers, as well as active matrix organic light-emitting diode (AMOLED) solutions, including AMOLED drivers, timing controllers, and touch controller ICs.

In addition, it offers application-specific IC services, liquid crystal on silicon and micro-electromechanical system products, power ICs, complementary metal oxide semiconductor image sensor products, wafer-level optics products, 3D sensing products, and ultralow-power WiseEye smart image sensing products.

Opera Limited

This tech company based in Norway pays shareholders a big 6.04% dividend. Opera Limited (NASDAQ: OPRA) provides mobile and PC web browsers and related products and services in Norway and internationally.

The company offers mobile browser products, such as:

• Opera Mini,
• Opera browser for Android and iOS
• Opera GX for PCs and Mobile
• Opera Touch; PC browsers, including Opera for Computers
• Opera GX
• Apex Football
• Opera VPN Pro
• Opera News, an AI-powered personalized news discovery and aggregation service

It also provides Opera Crypto Browser for PCs and mobile; browser-based cashback rewards programs; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal.

In addition, the company operates Opera Ads, an online advertising platform; and offers Web3 and e-commerce services.

United Microelectronics

Based in Taiwan this solid tech company deleivers a big 7.04% dividend. United Microelectronics Corporation (NYSE: UMC) operates as a semiconductor wafer foundry in:

• Taiwan
• China
• Hong Kong
• Japan
• Korea
• United States,
• Europe, and internationally.

The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. 

United Microelectronics has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards.

Xerox

This old school tech leader is more than just making copies and pays a huge 7.17% dividend. Xerox Holdings Corporation (NASDAQ: XRX) together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally.

The company operates through two segments:

• Print and Other
• FITTLE.

The Print and Other segment designs, develops, and sells document systems, solutions, and services, as well as IT and software products and services.

The FITTLE segment offers financing solutions for direct channel customer purchases and lease financing to end-users.

It also offers workplace solutions comprising:

• Desktop monochrome, color, and multifunction printers
• ConnectKey software
• Digital printing presses
• Light production devices
• Digital services that support workflow automation,
• Personalization communication software,
• Content management solutions, and digitization services

In addition, the company provides:

• Graphic communications, in-plant, and production solutions;
• FreeFlow, a software solution for the automation and integration of processing of print jobs comprising file preparation, final production, and electronic publishing
• IT services, end user computing devices, network infrastructure, and communications technology
• Technology product support, professional engineering, and commercial robotic process automation

Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie; it also invests in startups.

The post 5 Dividend Paying Tech Stocks You Can Buy With $1000 appeared first on 24/7 Wall St..

Investors can learn much by paying attention to the behavior of corporate insiders as they handle positions in their own companies. People may sell shares for various reasons (such as buying a house, paying for college, or getting ready for retirement). They generally buy for only one reason: they expect to make more money.

Often, one of the largest and best-informed shareholders in any company is the chief executive officer. Let’s see whether Booking Holdings Inc. (NASDAQ: BKNG) CEO Glenn Fogel has been increasing or decreasing his shares over the past year and whether he knows something we don’t.

What You Need to Know About Booking

Booking provides travel and restaurant online reservations and related services worldwide. The company operates the following:

• Booking.com offers online accommodation reservations.
• Rentalcars.com provides online rental car reservation services.
• Priceline offers online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services.
• Agoda provides online accommodation reservation services, as well as flight, ground transportation, and activities reservation services.
• Kayak is an online meta-search service that allows consumers to search and compare travel itineraries and prices, comprising airline ticket, accommodation reservation, and rental car reservation information.
• OpenTable provides booking online restaurant reservations.

The company also offers travel-related insurance products; restaurant management services to consumers, travel service providers, and restaurants; and advertising services. It was formerly known as Priceline Group and changed its name in February 2018. (These are the 18 worst tourist traps in America.)

The company was founded in 1997 and is headquartered in Norwalk, Connecticut. That is also the home of Dooney & Bourke, Pepperidge Farm and Xerox Holdings Corp. (NASDAQ: XRX). Competitors of Booking include Expedia Group Inc. (NASDAQ: EXPE) and Tripadvisor Inc. (NASDAQ: TRIP). Fogel has been president and CEO of Booking since 2017.

The company posted over $20.6 billion in revenue and has a market capitalization near $130.0 billion. The stock is up about 51% from a year ago and recently hit a multiyear high of $3,844.76 per share. The S&P 500 is 23% or so higher in the past year. Booking shares are up less than 5% year to date.

How the CEO of Booking Is Trading

One year ago, Fogel owned more than 47,300 shares, worth over $77.8 million. On last look, he owned less than 38,500 shares, a decline of about 8,900 shares. However, the value of the stake rose by around 56.5% to almost $121.8 million as the share price increased.

Who wouldn’t want to chop their stake and still see its value soar? Yet, there’s also the money left on the table by not holding on to the shares for a little longer. CEO Glenn Fogel could have sold shares for a variety of reasons, and we may never know the truth. The next quarterly report is due out soon, so any moves that insiders make afterward may be worth watching for further clues about what they know and we don’t.

Another internal shareholder to watch is General Counsel Peter Millones. His stake was worth over $48.9 million on last look. Chief Financial Officer David Goulden has a stake worth around $35.6 million. Note that Goulden and Fogel have both sold shares since the beginning of this year.

The post CEO Dumps 20% of Booking Shares appeared first on 24/7 Wall St..

When it comes to the 1980s, that decade had multiple defining moments across pop culture, technology, fashion, and global affairs. Along with the Berlin Wall falling and the end of the Cold War, the arrival of cable channels like CNN and MTV would help define generations. The 80s were also when computers started arriving in every home and video games became a global phenomenon.

Along with everything else in the 1980s, the arrival of yuppie culture helped fuel massive corporate growth. While the list of companies that dominated corporate America during this time will look pretty familiar, there are a few names that make their first appearances on the Fortune 500.

#1: General Motors

It should be no surprise that General Motors sits high on a list of companies that dominated corporate America in the 1980s. A titan in the automobile space, GM enjoyed record profits throughout this period. The release of the Chevrolet Camaro IROC-Z, GMC pickup trucks, and the Pontiac Fiero all pushed profits.

Additionally, GM launched the now-defunct Saturn brand with a heavy focus on driving customer satisfaction. With Saturn and other vehicles, GM pushed heavily into automated manufacturing which helped propel profit. GM was also able to save money by switching from V8 to V4 and V6 engines.

#2: Exxon

With oil prices hitting record highs coming out of the 1970s, Exxon saw huge profits in the early 1980s. Profits grew so fast that Exxon was able to finally overtake General Motors on the Fortune 500 in 1980 – 1986. Expanded operations in the North Sea, Soviet Union, and China helped Exxon become a truly global oil brand.

Of course, the biggest Exxon news in 1989 occurred when it merged with Mobil. This merger would create Exxon Mobil, the largest oil company in the world. Exxon did suffer from terrible PR in the late 1980s which impacted revenue after the Exxon Valdez oil spill off the coast of Alaska.

#3: IBM

Even though IBM was hesitant to enter the consumer PC market, 1981 was a momentous year for the company. The introduction of the IBM 5150 Personal Computer would drive the software industry forward forever. It was the release of IBM PC DOS 1.0 that helped grow IBM throughout the early 1980s.

It was during this era that IBM recognized that it could make significant revenue in the consumer space. Additional models like the IBM PC/AT and AS/400 would help drive even more growth for the company. IBM’s influence on the computer market during this era cannot be overstated.

#4: AT&T

The 1980s were a turbulent time for AT&T, but also a period of significant growth. The 1984 divestiture as a result of the government’s antitrust lawsuit would force AT&T to break up its Bell companies. However, AT&T was able to then focus on long-distance and cellular telephone services. In hindsight, this Bell breakup was the best thing for AT&T as it became a huge player in the telecommunications industry.

By acquiring Western Electric in 1984 as a result of the divestiture process, AT&T was able to control equipment manufacturing. As a result, AT&T was able to provide customers with reliable equipment that helped increase its market share significantly.

#5: DuPont

Another Fortune 500 staple, DuPont had several major moments in the 1980s that drove increased revenue. Expanding into specialty chemicals increased DuPont’s margins. Popular chemicals like Kevlar, Nomex, and Teflon were all created during this period. Kevlar, in particular, is well known for being the backbone of bulletproof vests worn by police and military personnel.

During the 1980s, DuPont also acquired Conoco, Inc. which was the largest corporate merger in U.S. history. In 1986, DuPont introduced the popular Stainmaster carpet, the best-selling carpet brand in the U.S.

#6: Ford

The 1980s were a solid period of growth for Ford and allowed it to comfortably remain a Fortune 500 top 10 brand. The introduction of the Ford Taurus in 1985 was a major moment and would be Ford’s best-selling model for years to come. The 1980 launch of the updated Ford Escort was hugely popular due to the move to front-wheel drive.

Another big moment for Ford in the 1980s was the release of the moving assembly line. A surprising highlight for Ford in this era was a 1981 partnership with Mazda. Ford was able to learn from Mazda to manufacture more efficient engines.

#7: General Electric

The 1980s saw big changes for General Electric as it transitioned into an international conglomerate. Most notable about this era was the introduction of Jack Welch as the company CEO in 1981. Welch is widely considered one of the most prominent CEOs in U.S. corporate history.

Welch oversaw the purchase of RCA in 1986, which gave GE a presence in electronics, media, audiovisual equipment, and the NBC network. He also prioritized its GE Capital division, which was a financial services group dedicated to commercial business lending and insurance.

#8: Atlantic Richfield

Moving into the upper echelon of corporate America, Atlantic Richfield was a major player in Alaskan oil production in the 1980s. Atlantic Richfield, or ARCO, was a key force in supplying domestic oil during this era.

The acquisition of Anaconda Copper Company in 1977 had major dividends in the 1980s. By diversifying its portfolio, ARCO drove major profits across both oil and mining. Though ARCO did reduce its workforce pretty significantly in the 1980s, it was still able to concentrate on its areas of highest profitability.

#9: United Technologies

The 1980s were a major period for United Technologies Corporation or UTC. During this time, the company focused on four groups: aircraft engines, flight systems, building systems, and industrial products. The 1979 acquisition of Carrier Corporation gave United a major opportunity in the 1980s to expand itself in the climate control market with HVAC systems.

Driving growth in the 1980s for UTC were major developments in aerospace. Developing aircraft engines with lower emissions helped drive UTC into sustainability and comfort. The purchase of Pratt & Whitney would also drive the introduction of new aircraft engines that saw wide use in commercial airlines.

#10: Tenneco Automotive

Interestingly enough, Tenneco Automotive was a staple of the Fortune 500 during the 1980s even as it broke itself apart. During this period, Tenneco divested itself of all of its businesses except for its automotive group. The result is that Tenneco was able to focus on steering and suspension components, emission control technologies, and ride control systems.

Additionally, Tenneco had a major role in exhaust systems and suspension components, which played a major role in its bottom line. Through its partnerships with major vehicle brands, Tenneco strengthened its position during the 1980s and created global reach.

#11: Texaco

One of the biggest oil brands in the U.S., Texaco was a top 10 figure on the Fortune 500 across the 1980s. However, the biggest 1980s news for Texaco was its 1985 legal loss to Pennzoil. The largest civil verdict in U.S. history, Pennzoil was awarded $10.53 billion against Texaco after attempting to purchase Getty Oil.

The legal trouble would lead Texaco to file for bankruptcy protection in 1987. To maintain its business, Texaco would restructure, reduce debt, and rid itself of non-core business assets. It would emerge from bankruptcy one year later as a financially healthy company.

#12: Chrysler

The 1980s were both positive and troublesome for Chrysler, one of the top 3 U.S. auto brands. In 1980, the U.S. government had to provide a billion-dollar loan to Chrysler to help it withstand financial difficulties. Between this loan and the arrival of CEO Lee Iacocca, Chrysler underwent significant cost-cutting measures and restricted the business to reverse its economic misfortune.

The arrival of the Plymouth Voyager minivan in 1984 was a significant opportunity for Chrysler. By capitalizing on its arrival, it helped restore the company to profitability and grow its market share.

#13: Nabisco

Solidifying itself a strong position on the Fortune 500 by the late 1980s, Nabisco is a staple food name. In 1981, Nabisco merged with Standard Brands to form Nabisco Brands only to merge with RJR Tobacco Company in 1985. As a result of this merger, Nabisco would be known as RJR Nabisco.

The 1980s saw the introduction of popular foods like Ritz Crackers, Honey Maid graham crackers, Teddy Grahams, and Wheat Thins. With these brands on store shelves, Nabisco grew significantly in the 1980s becoming a major force in the snack food market.

#14: Kraft

Hanging out as one of the top 30 Fortune 500 brands across the 1980s, Kraft’s importance in the food world is well documented. The biggest news in the 1980s for Kraft was an acquisition by Philip Morris Companies in 1988. This move gave Kraft more market reach and a broader distribution network.

Business moves aside, Kraft relied heavily on new products during this period including Jell-O pudding snacks, Capri Sun, Velveeta Shells & Cheese, and Lunchables. As part of these intros, Kraft also doubled down on product quality during this time as it reconfigured many product flavors in the 1980s.

#15: Procter & Gamble

One of the biggest consumer brands in the U.S., Procter & Gamble in the 1980s saw significant global expansion. During this time, P&G looked to break in with new audiences around the globe and continue to diversify its revenue streams. Among its bigger news, the 1985 acquisition of Richardson-Vicks gave P&G more shelf space with over-the-counter healthcare products.

These products include Vicks cough and cold remedies, which is still a popular brand today. Additionally, P&G introduced Tide with Bleach, Pampers Ultra diapers, and Crest Tartar Control toothpaste during this period.

#16: Amoco

Amoco was another major player in the oil business during the 1980s and remains so to this day. It had some significant achievements during this period with investing in new drilling technologies to better optimize mining for oil.

Amoco also undertook some major initiatives throughout the 1980s to better protect the environment. Between pollution control techniques and investments in renewable energy, Amoco has been a steward of environmental benefits.

#17: CBS

As one of the biggest entertainment and media brands, it’s no surprise to see CBS as a dominant corporation in the U.S. Throughout the 1980s, CBS had prime-time dominance with shows like Dallas, Dynasty, Murder She Wrote, and Magnum P.I. These episodes helped CBS stay at the top of the ratings.

Of course, shows like 60 Minutes also helped CBS continue to be a force in the news as well. Nightly news coverage of major events and breaking stories would help CBS enter more homes than ever. Events like the 1986 Challenger Shuttle Disaster were watershed moments for the CBS News division.

#18: Xerox

Xerox saw the 1980s as one of its biggest growth opportunities. Most notable is the widespread introduction of the laser printer. The adoption of this technology in the 1980s helped Xerox get into more businesses than ever before. The same can be said for office equipment like copiers and fax machines that helped drive global Xerox adoption.

Increasing competition did impact Xerox during the 1980s with bigger impacts around its non-core businesses. However, Xerox was able to maintain a strong market share and come out of the decade with a strong brand name and product lineup.

#19: General Foods

The 1980s was a big opportunity for General Foods as it gained a strong market share. Over the decade, General Foods introduced the popular Maxwell House Cappuccino, Kool-Aid Bursts, and Crystal Light powdered drink mix. More notably, General Foods introduced the “I Want My MTV” marketing campaigns for Post Cereals.

General Foods also used the 1980s to look at more healthy options for its popular items. Sugar-free Jello-O and reduced-fat recipes for Cool Whip and Country Time Lemonade were among the biggest healthier achievements.

#20: PepsiCo

The Pepsi brand needs little introduction as soda has been a staple American drink for decades. Pepsi took over in the 1980s with its restaurant buying spree. During the 1980s, Pepsi acquired KFC, Taco Bell and Pizza Hut. This not only gave Pepsi a more diverse revenue stream, but also ensured these brands only served Pepsi to its customers.

Along with its rapid growth, Pepsi jumped on the healthy hype train by introducing Diet Pepsi. Of course, Pepsi may be best known for some of its marketing campaigns during this era on MTV and Michael Jackson’s “Bad” World Tour.

The post 20 Companies That Dominated Corporate America in the 80’s appeared first on 24/7 Wall St..

The futures were modestly higher on Thursday, after a big tech-led risk-off Wednesday. All the major indexes closed lower, with the tech-heavy Nasdaq down 1.30% and the small-cap Russell 2000 down a whopping 1.65%. Many across Wall Street continue to chalk the summer rally up to nothing more than a bear market rally. In addition, the release of the Federal Open Market Committee minutes Wednesday afternoon showed that a very hawkish stance remains in place and the hopes for any sort of Federal reserve pivot near term are fading.

The sellers were back in force, as yields across the Treasury curve were higher all around. The five-year and 10-year note handles were up nine and seven basis points, respectively. The two-year and 10-year note inversion held serve, with the former closing at 3.29% and the latter at 2.89%.

The energy complex traded positive Wednesday, with Brent and West Texas Intermediate crude closing up on the day. Natural gas, which has exploded higher recently, was flat on Wednesday but still closed well over the $9 level. Gold and Bitcoin were both down sharply.

24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding fresh ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
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These are the top analyst upgrades, downgrades and initiations seen on Thursday, August 18, 2022.

Array Technologies Inc. (NASDAQ: ARRY): Morgan Stanley downgraded the solar infrastructure stock to Underweight from Equal Weight and trimmed the $17 target price to $15. The consensus target is higher at $24.54. The last trade on Wednesday was reported at $21.50. Shares were down almost 6% in the premarket, likely due to the downgrade.

CBOE Global Markets Inc. (CBOE): Rosenblatt started coverage with a Buy rating and a $153 target price. The consensus target is $136.10. The shares ended trading on Wednesday over 3% higher at $123.56.

C.H. Robinson Worldwide Inc. (NASDAQ: CHRW): Vertical Research’s downgrade was from Hold to Sell with a $104 price target. The consensus target is $111.77, and the stock closed on Wednesday at $116.11.
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Cognizant Technology Solutions Corp. (NASDAQ: CTSH): HSBC Securities downgraded the shares to Hold from Buy and cut the $90 target price to $79. The consensus target is $79.77. Wednesday’s close was at $68.90.

Corning Inc. (NYSE: GLW): Credit Suisse began covering the optical giant with a Neutral rating and a $36 target. The consensus target is $40.15. The shares closed almost 3% lower on Wednesday at $36.38.
Danaher Corp. (NYSE: DHR): Bernstein resumed coverage with an Outperform rating, and it lifted the $330 target price to $340. The consensus target is $325.52. The stock closed at $297.27 on Wednesday.

Dell Technologies Inc. (NYSE: DELL): Credit Suisse started covering the tech giant with an Outperform rating and a $60 target. The consensus target is $59.81. The final trade for Wednesday hit the tape at $47.83.

Emerson Electric Co. (NYSE: EMR): Bernstein resumed coverage with a Market Perform rating, but it cut its $105 target price to $100. That compares with a $102.43 consensus target and Wednesday’s close at $88.86.

First Solar Inc. (NASDAQ: FSLR): When Morgan Stanley upgraded the stock to Equal Weight from Underweight, its target price jumped from $54 to $136. The $108.17 consensus is below Thursday’s close at $116.30.

Fresh Pet Inc. (NASDAQ: FRPT): Piper Sandler started coverage with an Overweight rating and a $69 target. The consensus target is $77.33. The stock closed almost 4% lower on Wednesday at $47.00.

FuboTV Inc. (NYSE: FUBO): Wedbush downgraded the new meme stock darling to Neutral from Outperform, yet it raised the $5 price target to $6. The consensus target is $8.29. The last trade Wednesday came in at $5.26, which was down 15% on the day after a huge run higher this week.

Getty Images Holdings Inc. (NYSE: GETY): Citigroup initiated coverage with a Neutral rating and a $33 target. Oddly, the consensus target is $12, while Wednesday’s close was at $31.36.

Louisiana-Pacific Corp. (NYSE: LPX): Citing a failed breakout late last year and a sustained downtrend, Zacks named this stock as its Bear of the Day. The shares have traded as high as $79.77 in the past year and closed most recently at $59.08 a share. That is down almost 25% year to date.

MarketAxess Holdings Inc. (NASDAQ: MKTX): Rosenblatt started coverage with a Sell rating and a $231 target price. The consensus target is $309.44. The stock closed at $274.25 on Wednesday.
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Marten Transport Ltd. (NASDAQ: MRTN): Though Vertical Research downgraded the stock to Hold from Buy, it also raised its $24 target price to $25. The consensus target is $23.50 for now. The shares closed down over 5% on Wednesday at $22.17, after recently hitting a 52-week high.

PACCAR Inc. (NASDAQ: PCAR): Vertical Research cut its Buy rating to Hold but pushed the $100 target price up to $102. The consensus target is $93. The stock closed on Wednesday at $93.52.

Seagate Technology Holdings PLC (NASDAQ: STX): Credit Suisse started coverage with a Neutral rating and an $80 target, below a consensus target of $84 or so. The stock closed down over 3% on Wednesday at$79.24.

Synopsis Inc. (NASDAQ: SNPS): Wolfe Research initiated coverage with an Outperform rating and a $440 target. The consensus target is $390.90. The stock closed on Wednesday at $381.
3M Co. (NYSE: MMM): Bernstein resumed coverage on the venerable industrial heavyweight with a Market Perform rating and a $155 target price. The consensus target is $147.08. The stock closed at $147.43 on Wednesday.

Unity Software Inc. (NYSE: U): Wolfe Research started coverage with an Outperform rating and a $70 target. The consensus target is $52.37. The company, which is trying to Buy AppLovin, saw its stock close almost 3% lower on Wednesday at $52.10.

Unum Group (NYSE: UNM): Zacks has selected this insurer as its Bull of the Day stock, citing the shareholder value added by its dividend hikes and share buybacks. Shares hit a 52-week high of $39.70 on Wednesday and were higher than that in Thursday’s premarket. The year-to-date gain is about 60%.

Vale S.A. (NYSE: VALE): Itau BBA downgraded the mining shares to Market Perform from Outperform and has a $15 target price. The consensus target is $18.56. The stock was last seen on Wednesday trading at $13.21, which was down almost 3% for the day.

Western Digital Corp. (NASDAQ: WDC): Credit Suisse started coverage with a Neutral rating and a $52 target. The consensus target for the hard disk drive giant is higher at $68.88. The stock closed on Wednesday at $48.20.

Xerox Holdings Corp. (NYSE: XRX): Credit Suisse initiated coverage with an Underperform rating and a $14 target. The consensus target is $14.67. The $18.59 close on Wednesday was down almost 4% on the day.
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The summer surge in stocks likely has been a bear market rally, and the smart move now may be to take profits and grab large-cap dividend stocks that are on sale. Seven S&P 500 stocks fit the bill, and they offer very solid total return potential and look like outstanding ideas for concerned investors.

Credit Suisse still likes Snowflake but expects more from another tech stock.
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Wednesday’s early top analyst upgrades and downgrades included Apple, Carvana, Elanco Animal Health, Gilead Sciences, Home Depot, Park Hotels & Resorts, Shoals Technologies, SNDL, SITE Centers and UDR. Analyst calls seen later in the day were on DraftKings, Rockwell Automation, Sandstorm Gold, Stanley Black & Decker, Take-Two Interactive Software, Teladoc Health, Yum! Brands and more.

The post Thursday’s Top Analyst Upgrades and Downgrades: Corning, Dell, First Solar, FuboTV, Seagate, 3M, Western Digital, Xerox and More appeared first on 24/7 Wall St..

With the trading day about halfway over, the broad markets were pushing much higher on Thursday. The S&P 500, Dow Jones industrial average and Nasdaq each posted gains over 0.5% right around the noon hour.

24/7 Wall St. looked at some big analyst calls seen thus far on Thursday. We have included the most recent analyst call on each stock, as well as recent trading history and the general consensus among analysts.

For those that might have missed it, 24/7 Wall St. had an earlier round of analyst calls on Thursday that included Apple, Best Buy, FireEye, Match, Qualcomm and more.

Atlas Corp. (NYSE: ATCO) was initiated with a Buy rating and a $16.50 price target at B. Riley. The stock was trading near $12.19, in a 52-week range of $0.63 to $12.65. The consensus price target is $11.92.

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CDW Corp. (NASDAQ: CDW) was upgraded to Overweight from Equal Weight with a $164 price target at Morgan Stanley. The stock was trading near $147.94, in a 52-week trading range of $73.39 to $149.97. The consensus price target is $144.89.

Digital Turbine Inc. (NASDAQ: APPS) was reiterated with a Buy rating at Maxim Group, and its price target was raised to $85 from $75. Craig Hallum reiterated a Buy rating and raised its price target to $80 from $60. The consensus price target is $60.07. Shares traded at $82.72, in the 52-week range of $3.48 to $82.96.

KLA Corp. (NASDAQ: KLAC) was reiterated with a Market Perform rating and its price target was raised to $320 from $295 at Cowen. The shares traded at $291.57, within its 52-week range of $110.19 to $317.60. Analysts have a consensus price target of $305.24.

Murphy Oil Corp. (NYSE: MUR) was downgraded by KeyBanc Capital Markets to Sector Weight from Overweight. The consensus target is $15.09. The stock traded at $12.97, in a 52-week range of $4.50 to $22.98.

Prudential PLC (NYSE: PUK) was upgraded to Buy from Hold at Jefferies. The stock was up about 3% to $33.63 a share on Thursday. The 52-week range is $15.68 to $39.75. The consensus price target is $42.50.

Qorvo Inc. (NASDAQ: QRVO) was reiterated with a Buy rating and its price target was raised to $195 from $160 at Craig Hallum. The stock traded at $165.29 and has a consensus price target of $182.04. The 52-week trading range is $67.54 to $191.82.

Sleep Number Corp. (NASDAQ: SNBR) was downgraded by BofA Securities to Underperform from Neutral, though the firm raised its price target to $88 from $73. The stock was last seen at $107.00, and it has a consensus target of $74.50. The 52-week trading range is $15.27 to $116.50.

Valvoline Inc. (NYSE: VVV) was reiterated as Buy at Monness Crespi & Hardt, and its price target was raised to $30 from $26. The stock was trading at $23.58, in a 52-week range of $9.06 to $25.45. The consensus price target is $25.25.

Xerox Holdings Corp. (NYSE: XRX) was downgraded to Underweight from Equal Weight with an $18 price target at Morgan Stanley. Shares were trading at $22.93, in a 52-week range of $14.22 to $38.69. The consensus price target is $17.80.

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Five outstanding stocks make sense for growth and income investors while the stock market is overbought and overdue for a breather.

Plus, analysts weigh in on whether Chipotle Mexican Grill Inc. (NYSE: CMG) stock is still a buy after its run-up and earnings results.

And Apple and Facebook go head to head on privacy issues, but are they both being truthful?

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The post CDW, Murphy Oil, Qorvo, Xerox and More Thursday Afternoon Analyst Calls appeared first on 24/7 Wall St..

The futures were trading decidedly lower Wednesday morning as investors are digesting what has become a very overbought stock market, which included yet another intraday all-time high, this time on the S&P 500. Top analysts on Wall Street are starting to point to “bubble” type metrics and are urging caution. With fourth-quarter earnings reports continuing to stream in, most across Wall Street will not only be examining the results but also looking to see what guidance for the first quarter and the rest of 2021 looks like. With all the major indexes and the Russell 2000 still very close to all-time highs, it makes sense for investors to start building some cash reserves while repositioning portfolios for 2021.

24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.

These are the top analyst upgrades, downgrades and initiations seen on Wednesday, January 27, 2021.

Albertsons Companies Inc. (NYSE: ACI) was downgraded at Wells Fargo from Overweight to Equal Weight with a $19 price target. The consensus target price for the grocery store giant is $20.82. Tuesday’s final trade came in at $19.50 up almost 5%.

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Bed Bath & Beyond Inc. (NASDAQ: BBBY) was downgraded to Neutral from Overweight at Baird, which raised the target price to $37. The lower consensus target is $24.63, and Tuesday’s close was at $36.87 a share.

Dick’s Sporting Goods Inc. (NYSE: DKS) was upgraded to Buy from Neutral at Citigroup, which also raised the target price to $90. The lower consensus target is $68.95. Shares closed trading on Tuesday at $68.55.

DoorDash Inc. (NYSE: DASH) was started at Wells Fargo with an Equal Weight rating and a $185 price objective. The posted consensus objective is $169.17. The last trade on Tuesday came in at $198.22, which was up over 3% on the day.

DraftKings Inc. (NASDAQ: DKNG) was started with an Outperform rating and a $71 price target at Bernstein. The consensus target is $61.38. The last trade on Tuesday hit the tape at $54.06.

Dycom Industries Inc. (NYSE: DY) was raised from Sector Weight to Overweight with a $104 price target at KeyBanc Capital Markets. The consensus target is $82.17, and the final trade for Tuesday came in at $87.81.

Five Below Inc. (NASDAQ: FIVE) was downgraded to Neutral from Buy at Citigroup, though the firm raised the target price to $205. The consensus target for the red-hot retailer is $204.83. The last trade for Tuesday was reported at $184.75.

Himax Technologies Inc. (NASDAQ: HIMX) was raised to Buy from Neutral at Nomura. It also was named as the Bull of the Day at Zacks, which said that after guiding higher, this stock has seen a big run that could continue with improved execution. The shares have traded in a 52-week range of $1.73 to $9.88, and have a consensus price objective of $6.96. The stock closed way above that level Tuesday at $9.76.

International Flavors & Fragrances Inc. (NYSE: IFF) was named as the Zacks Bear of the Day stock. The firm said that this stock has seen some small estimate revisions, so it has yet to be seen how the shares will respond. The stock last closed at $113.78 and has a consensus price target of $138.67.
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Kohl’s Corp. (NYSE: KSS) was upgraded to Buy from Neutral at Citigroup, which raised the price target on the retailer to $56. The consensus target is just $37.60. The stock closed on Thursday at $45.16 per share.

Mastercard Inc. (NYSE: MA) was downgraded from Overweight to Sector Weight with a $345 price target at KeyBanc Capital Markets. The consensus target for the credit card behemoth is up at $378.83. The stock was last seen on Tuesday at $327.70.

News Corp. (NASDAQ: NWSA) was raised to Overweight from Neutral at JPMorgan, which has a $23 price target. That compares with the $17.94 consensus target and Tuesday’s $19.14 close.

Prologis Inc. (NYSE: PLD) was raised from In-line to Outperform with a $121 price objective at Evercore ISI. The consensus target is lower at $115.94. The shares were last seen on Tuesday at $106.05, after a one-day gain of over 3%.

Rockwell Automation Inc. (NYSE: ROK) was upgraded to Outperform from Neutral at Baird, and the price target was raised to $275. The consensus target is $252.05. The stock retreated over 16% on Tuesday to close at $244.45, despite posting better than expected earnings.

Texas Instruments Inc. (NYSE: TXN) was raised to Buy from Hold at Summit Insights. The venerable chip maker has traded in a 52-week range of $93.09 to $175.47, and it has a consensus price target of $165.74. The closing price on Tuesday was $171.47. Shares were down almost 3% in premarket action.

3M Co. (NYSE: MMM) was raised at JPMorgan from Neutral to Buy with a $205 price target. That compares to the $179.13 consensus target. The stock rose more than 3% on Tuesday and closed at $175.95.

Ulta Beauty Inc. (NASDAQ: ULTA) was downgraded to Neutral from Buy at Citigroup, which raised the price target to $320. The consensus target is $302.42, and the shares closed at $295.72 on Tuesday.

Under Armour Inc. (NYSE: UAA) was downgraded to Neutral from Buy at Citigroup, though it lifted the price target to $19. That compares with a lower $15.64 consensus target and Tuesday’s $18.51 close.

Wendy’s Co. (NYSE: WEN) was upgraded to Buy from Hold at Deutsche Bank, which also raised the price target on the fast-food giant to $25. The consensus target is right in line at $25.06. The last trade for Tuesday was reported at $21.07 a share.

Xerox Holdings Corp. (NYSE: XRX) was downgraded to Neutral from Outperform at Credit Suisse, which lowered the target price to $20. The consensus target is $17.80. The shares were last seen Tuesday at $21.07.

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A market sell-off is probably coming, perhaps a fast and furious 10% or even 20% drop. Typically, sin stocks are able to hold their own when that happens, and BofA Securities has four that could be just the ticket for worried investors.

Tuesday’s early top analyst upgrades and downgrades included Activision Blizzard, Bank of America, Dollar General, DraftKings, Electronic Arts, Micron Technology and Microsoft. Analyst calls made later in the day featured Applied Materials, Apache, Bed Bath & Beyond, Palo Alto Networks and more.
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The post Top Analyst Upgrades and Downgrades: DraftKings, Kohl’s, Mastercard, Texas Instruments, 3M, Ulta, Under Armour and More appeared first on 24/7 Wall St..

It seems amazing that the S&P 500 went from a continued raging bull market at the start of 2020, into the fastest recession of our lives, and then all the way back up to positive in record time. It’s almost as if the bear market never existed. Not so fast. While the S&P 500 managed to recapture all-time highs in August, many of its stocks and sectors are not participating in the economic recovery and bull market at all.

24/7 Wall St. has been screening the universe of actively traded stocks looking for those companies that have seen negative performance or that have lagged behind others during the stock market recovery since the V-bottom in March and since April. The verdict is simple: the breadth of the stock market recovery remains rather weak.

Many sectors of the economy remain under partial closure and many are effectively unable to operate at profitability and may not for the foreseeable future. Of the S&P 500 screen, we selected 40 of the top losing S&P 500 stocks that are down for the year, with losses ranging from over 30% to over 55%. In most cases, these were historically solid companies before the recession that are likely to survive afterward.

Note that investors need to be aware of a so-called value trap. Some stocks may look like screaming buys because their share prices have come down so much, but lower share prices and weaker fundamentals may not be “cheap” at all. Companies that have ended up in an industry facing secular changes or in which their own underlying fundamentals are weak will not feel like “value” over time.
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To keep the value screen fair and reasonable for value investors, some sectors were eliminated due to permanent damage. Companies largely were excluded if their primary operations were tied to oil and gas, if they were the troubled major retailers and if they were major real estate owners (e.g., REITs). Companies reliant on travel and tourism (airlines, cruise lines, hotels) also were screened out due to the sector’s forced financial losses.

According to a screen from Finviz, 292 members of the S&P 500 still are down year to date (YTD). Of those that are negative YTD, 154 of them are down 20% or more, and 55 of those stocks are down by 40% or more, with 24 of them down 50% or more. There are also now 25 members of the S&P 500 Index with a market cap of less than $5 billion, which means they could be moved down to the S&P Mid-Cap 400 Index and replaced by “more modern and preferable” stocks if their shares do not recover.

Of the S&P 500’s top gainers, two stocks have gained over 100% YTD and 19 stocks with gains of between 50% and 100%. After those, there are another 30 with gains of 30% to 49% and another 31 stocks with gains between 20% and 30%.

While we are not using the Dow Jones industrials for screening purposes, 20 of the 30 Dow stocks have losses ranging from under 1% to 48.5%. That leaves just 10 of the 30 up YTD, and only five are up 10% or more (with Apple up a whopping 69%).

The long and short of the matter is that this new bull market is really a market of stocks rather than a stock market. The leadership companies have provided all the great gains, and companies in the old economy that do not have a great business model or that are deemed nonessential are feeling the sting. We have added some color on each company, included some trading history and included some Refinitiv consensus data.

Investors need to understand that the market losers often tend to stay losers for some time. These may take quite some time to recover, and history has proven that shopping for value in the reject bin will generate some companies that do not have any great place in the future. Here are 40 stocks from the S&P 500 that are down 30% or more so far in 2020.

1. Wells Fargo & Co. (NYSE: WFC) is the biggest loser among the S&P 500 banks, and its problems of a dividend cut and a Warren Buffet exodus are only part of the issue here. Wells Fargo has even joined the banks trading at a deep discount to book value because investors believe that its underlying book value will be far lower in the future. Wells Fargo stock is down 56% YTD, despite being down just 2.2% in the trailing 90 days. It recently closed at $23.64 a share, in a 52-week range of $22.00 to $54.75. It has a market cap of $97 billion, and its dividend yield is 1.7%. Analysts have a consensus price target of $29.72.

2. Under Armour Inc. (NYSE: UAA) was last seen down 55% YTD, and it is actually still up 18% over the past quarter despite its recent sell-off. Under Armour faced issues even before the pandemic, and Nike has managed to keep winning with its market dominance. Under Armour’s future turnaround looks less certain, based on a trading range of $9.50 to about $11.75 all summer. The consensus price target is $10.39. Under Armour stock last closed at $9.73, in a 52-week range of $7.15 to $21.96. It has a market cap of just over $4 billion.

3. PVH Corp. (NYSE: PVH) is a top apparel company, but the stay-at-home and athleisure trends have not worked so far for the company. Some of its brands include Tommy Hilfiger, Calvin Klein, Van Heusen, Izod and Geoffrey Beene, and it has licenses for brands including Speedo, Kenneth Cole, Michael Kors, DKNY and Chaps. PVH shares are still down 52% YTD, despite its stock being up 13% in the past 90 days. It recently closed at $50.13 a share, in a 52-week range of $28.40 to $108.06. It has a market cap of $3.6 billion. The consensus price target is $58.75.

4. DXC Technology Co. (NYSE: DXC), sometimes thought of as “the other IBM,” is down 50% YTD, even though it is up 20% in the past 90 days. This one is less known by the public as it was created by the merger of CSC and the enterprise services business of Hewlett Packard Enterprise. DXC Technology stock last closed at $18.68, in a 52-week range of $7.90 to $38.37. The company has a market cap of $4.7 billion and a consensus price target of $22.93.

5. Xerox Corp. (NYSE: XRX) seems pretty obvious, in that fewer offices means fewer copying and in-office needs. Xerox is down 49% YTD, even though it is up 10% over the past 90 days. With no HP merger and with limited prospects on its own, Xerox is finding itself as the tech leader that no one even remembers still exists. Xerox recently closed at $18.76, in a 52-week range of $14.22 to $39.47. Analysts have a consensus price target of $17.20. The market cap is $4 billion, and the dividend yield is 5.3%.

6. Western Digital Corp. (NASDAQ: WDC) has been a big disappointment as the rest of tech has held strong. Its shares were down more than 46% YTD and were down just over 20% in the past 90 days, after a poor earnings and guidance report. This has been far more disappointing than the 24.6% drop YTD for rival Seagate. Western Digital last closed at $33.71 a share, in a 52-week range of $27.40 to $72.00. It has a market cap of $10 billion and a consensus price target of $51.49.
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7. Comerica Inc. (NYSE: CMA) is down about 46% YTD, and that is after its shares are still up 17% in the past 90 days. With its headquarters in Texas and with a wide exposure to corporate loans, Comerica continually comes up in screens about banks with high direct and indirect exposure to the energy sector. Comerica recently closed at $38.37, with a 52-week range of $24.28 to $73.43. It has a market cap of $5.3 billion and a dividend yield of 7.1%. Analysts have a consensus price target of $40.40.

8. Tapestry Inc. (NYSE: TPR) is down 46% YTD and up only 4% in the past 90 days. This may be a great company, but it is a hard sell to consider that the products under its Coach, Kate Spade and Stuart Weitzman labels will sell like hot-cakes if all the buyers are unable to go to work, have luxury travel and have limited options for “going out on the town.” Tapestry last closed at $14.54, in a 52-week range of $10.18 to $30.40 and with a consensus price target of $19.78. The market cap is $4 billion.

9. American International Group Inc. (NYSE: AIG) was last seen down 45% YTD, and it is down 2% in the past 90 days. The insurance giant has seen weakness in life/health-related insurance with higher leverage and lower interest rate coverage. AIG was severely punished during the February through March panic selling, as it lost more than two-thirds of its value in less than six weeks. AIG recently closed at $28.27, in a 52-week range of $16.07 to $58.66. It has a market cap of $24 billion and dividend yield of 4.4%.

10. Invesco Ltd. (NYSE: IVZ) was brutally punished in the March panic selling, but unlike many others, this asset manager’s stock price ended up even lower than the March lows in mid-May. Invesco shares are down over 43% YTD, even after a 39% gain in the past 90 days. Invesco last closed at $10.14, in a 52-week range of $6.38 to $19.01. It has a market cap of $4.7 billion and a dividend yield of 6.1%. Analysts have a consensus price target of $10.07.

11. General Electric Co. (NYSE: GE) has problems that are widely known, and it was only included on this list for the “deep value” buyers who think share prices rather than multiples against forward earnings, free cash flow and EBITDA are good criteria of “value.” GE is down 43% YTD and down about 1.5% in the past 90 days. Shares recently closed at $6.31, in a 52-week range of $5.48 to $13.26 and with a consensus price target of $7.75. The market cap is $55 billion, and the dividend yield is 0.6%.

12. Ralph Lauren Corp. (NYSE: RL) seems obvious in the higher end apparel category. Fewer places to go for entertainment and fewer office trips means less need for higher fashion. The Polo brand owner is down over 42% YTD and down roughly 8% in the past 90 days. Ralph Lauren last closed at $67.05, in a 52-week range of $59.82 to $128.29. It has a market cap of $4.9 billion. The consensus price target is $85.08.

13. FirstEnergy Corp. (NYSE: FE) has been the worst-performing of the more diversified utilities companies due to a recent tie to an Ohio racketeering scandal casting a wide cloud over its future. Still, the outcome here is far from known, and the company’s other assets are believed to hold great value. We have even wondered if Buffett would dare come in as a white knight to clean up the company (and make a pretty penny on the cheap). FirstEnergy shares were last seen down 42% YTD. FirstEnergy recently closed at $28.11, in a 52-week range of $22.85 to $52.52 and with a consensus analyst target of $39.18. It has a market cap of $15 billion and a dividend yield of 5.6%.

14. Discover Financial Services (NYSE: DFS) is effectively a pure-play on credit cards, and its audience historically has not been at the highest end of the credit score and income curve. With rising delinquencies and charge-offs widely reported by credit card companies and banks, the stock is down about 41.5% YTD, even after its shares rose 22.5% over the past 90 days. Discover Financial Services stock last closed at $49.57, in a 52-week range of $23.25 to $87.43. It has a market cap of $15 billion and a dividend yield of 3.6%. Analysts have a consensus price target of $61.25.

15. Hewlett Packard Enterprise Co. (NYSE: HPE) is down 41% YTD, and its shares are up 1.7% in the past 90 days. It is due to report earnings in the last week of August, and its earnings reports have faced trouble under the COVID-19 impact on overall business conditions. Shares recently closed at $9.33, in a 52-week range of $7.43 to $17.59. The market cap is $12 billion, and the dividend yield is 5.2%. The consensus price target is $10.97.

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16. KeyCorp (NYSE: KEY) is down 41% YTD, even though its shares up over 11% in the past 90 days. KeyCorp still screens with a dividend yield above 6%, due to a sharp sell-off earlier this year rather than to great general industry earnings during this recession. KeyCorp last closed at $11.95 a share, in a 52-week range of $7.45 to $20.53 and with a consensus price target of $13.91. It has a market cap of $11.7 billion and a dividend yield of 6.2%.

17. Lincoln National Corp. (NYSE: LNC) is among other insurers with serious negative performance. The stock is down almost 41% YTD and down less than 1% in the past 90 days. It lost nearly 70% of its value during the February and March panic selling. Its dividend yield of almost 4.5% was confirmed with no dividend-cut announced, and its dividend coverage looks more than ample (and then some). Lincoln National stock recently closed at $34.92, in a 52-week range of $16.11 to $62.95. It has a market cap of $6.7 billion and a dividend yield of 4.6%. Analysts have a consensus price target of $44.64.

18. U.S. Bancorp (NYSE: USB) is still down about 40.5% YTDm despite being up about 7% in the past 90 days, even after a sell-off since the first week of August. U.S. Bancorp still has a market cap above $50 billion, and its premium to book value has remained much closer to 1.0 (at 1.16 on last look) with better than a 4.7% dividend yield. U.S. Bancorp last closed at $35.21, in a 52-week range of $28.36 to $61.11. It has a market cap of $53 billion and a consensus price target of $42.66.
19. Citizens Financial Group Inc. (NYSE: CFG) was last seen down about 40.5% YTD, despite being up over 13.5% in the past 90 days. This is the fifth worst performing YTD bank stock covered so far out of those in the S&P 500, with a $10 billion market cap and shares still at a very hefty discount of 0.50 times book value. Citizens Financial recently closed at $24.19, in a 52-week range of $14.12 to $41.29. It has a market cap of $10 billion and a 6.5% dividend yield. The consensus price target is $29.58.

20. M&T Bank Corp. (NYSE: MTB) is still down about 39.5% YTD, despite being up 4.5% in the past 90 days. The stock has been range-bound for about 60 days, and its valuation of almost 0.9 times book value remains much lower than pre-recession metrics. M&T Bank last closed at $102.46 a share, in a 52-week range of $85.09 to $174.00 and with a consensus price target of $122.85. It has a market cap of $13 billion and a dividend yield of 4.3%.

21. Huntington Bancshares Inc. (NASDAQ: HBAN) is down 39.5% YTD, despite a gain of almost 20% over the past 90 days. This stock never did recover to its pre-Great Recession peak from 2006, and it is now at a discount to book value (0.78 times), and its dividend yield above 6% should highlight some concerns that it may not be sustainable without an industry recovery. Huntington Bancshares closed at $9.11, in a 52-week range of $6.82 to $15.63. It has a market cap of $9.3 billion and a dividend yield of 6.6%. Analysts have a consensus price target of $10.59.

22. Unum Group (NYSE: UNM) is a life insurance provider with a relatively small $3.56 billion market capitalization, one of the smallest S&P 500 stocks. Unum’s stock is still down 39.5% YTD, despite a gain of 19.9% over the past 90 days. Its dividend yield of over 6% may seem suspect, due solely to its stock performance more than incredibly strong earnings. Shares last closed at $17.64, in a 52-week range of $9.58 to $31.32. The consensus analyst target is $21.00. Unum has a market cap of $3.6 billion and a dividend yield of 6.5%.

23. Zions Bancorp. (NASDAQ: ZION) is down just over 39% YTD, despite being up by 4.6% from 90 days ago. The stock is still up handily from its panic-selling lows in March, but its valuation of 0.75 times book value is against a 4.1% dividend yield. It recently closed at $31.59, in a 52-week range of $23.58 to $52.48. It has a market cap of $5.2 billion and a consensus price target of $36.48.

24. V.F. Corp. (NYSE: VFC) is still down over 38% YTD, despite being 10.8% higher than 90 days ago. Being in the apparel and accessories products can be tricky when so many retailers are in trouble, stores are still closed and the products not being in high demand due to stay-at-home and few “out on the town” options. Still, some of its brands should win from the new travel trends. Those brands include North Face, Timberland, Vans, Eastpak, JanSport, Eagle Creek and Dickies. Shares last closed at $61.66, in a 52-week range of $45.07 to $100.25. It has a market cap of $24 billion and a dividend yield of 3.1%. Analysts have a consensus price target of $65.91.

25. H&R Block Inc. (NYSE: HRB) was last seen down 37.7% YTD and down 13.7% over the past 90 days. There are perhaps far more people who cannot afford tax preparation and may migrate to free or low-cost software services to file taxes. The shift of the tax filing dates also shifted a large portion of its business out into forward months. H&R Block last closed at $14.62, in a 52-week range of $11.29 to $27.35 and with a consensus price target of $18.17. It has a market cap of $2.8 billion and a dividend yield of 7.1%.

26. ViacomCBS Inc. (NASDAQ: VIAC) may have picked an unlucky time to merge two media giants back together. Its shares are down 36.8% YTD, despite seeing a sharp 35% gain in the past 90 days. ViacomCBS recently closed at $26.51, in a 52-week range of $10.10 to $43.04 and with a consensus price target of $26.00. It has a market cap of $16.5 billion and a dividend yield of 3.6%.

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27. Huntington Ingalls Industries Inc. (NYSE: HII) is involved in making military ships for the United States and ally nations, and it has fallen since a disappointing earnings report in early August. With a market cap of only $6.3 billion, Huntington Ingalls is down 36.7% YTD and down 13.2% in the past 90 days. This makes it the worst-performing stock of the major defense contractors. Huntington Ingalls last closed at $158.63, in a 52-week range of $147.14 to $279.71. It has a market cap of $6.4 billion and a dividend yield of 2.6%. Analysts have a consensus price target of $186.15.

28. Omnicom Group Inc. (NYSE: OMC) is in a leadership position in advertising agencies. That is a great spot to be in during economic booms, but companies largely have been trimming their advertising efforts to save cash and possibly in place of firing workers. Omnicom shares are down 32% YTD but are up 1.5% in the past 90 days. Despite being higher from the March and May lows, its stock has been range-bound for most of the past three months. Omnicom recently closed at $52.55, in a 52-week range of $46.37 to $82.73. It has a market cap of $11.3 billion and a dividend yield of 5.0%. The consensus price target is $57.82.

29. Hartford Financial Services Group Inc. (NYSE: HIG) has suffered from low rates and a challenging climate to generate new business, along with other insurers in 2020. Hartford Financial stock is still down 34.4% YTD, despite being up 7.7% in the past 90 days. Shares last closed at $39.85, with a 52-week range of $19.04 to $62.75 and a consensus price target of $52.33. It has a market cap of $14 billion and a dividend yield of 3.3%.
30. Discovery Inc. (NASDAQ: DISCK) has performed worse than its more actively traded A shares in 2020, despite a slightly better gain over the past 90 days. The media company owns and operates its own networks and video content that spans all ages and genres, which means it is reliant on cable charges and advertising. The K shares are down about 34.3% YTD, despite being up 9.1% over the past 90 days. Discovery recently closed at $20.04, in a 52-week range of $15.43 to $31.20. It has a market cap of $10.6 billion and a consensus price target of $24.33.

31. Mohawk Industries Inc. (NYSE: MHK) is a leader in anything related to flooring, and while residential sales are strong, the commercial market is on pause. Mohawk shares are down 33.7% YTD, despite being up 8.4% in the past 90 days. It lost more than half of its value in the February to March panic selling and has since recovered yet again, after a very strong selling bought in early July after allegations that the company has been using fictitious sales data. Mohawk Industries stock last closed at $90.32, in a 52-week range of $56.62 to $153.05. It has a market cap of $6.4 billion and a consensus price target of $93.46.

32. NetApp Inc. (NASDAQ: NTAP) is down 33.7% YTD and is down 7.7% over the past 90 days. NetApp was punished along with other hardware providers during the sell-off from February through March, but its recovery has been muted. Even valued at 10 times expected earnings and with a 4.6% dividend yield, it has not overcome negative revenue trends expected in 2020 and slow growth thereafter. Its earnings report is scheduled for August 26. NetApp recently closed at $41.25, in a 52-week range of $34.66 to $65.38. It has a market cap of $9.2 billion and a dividend yield of 4.7%. Analysts have a consensus price target of $47.33.

33. WestRock Co. (NYSE: WRK) is down 33.7% YTD despite its shares being up 12.3%% over the past 90 days. The paper and packaging solutions for consumer and corrugated markets has been challenged during 2020, and analysts are still expecting slight revenue and earnings per share contractions to last in the rest of 2020 and into 2021. WestRock last closed at $28.46, with a 52-week range of $21.50 to $44.39. It has a market cap of $7.4 billion and a dividend yield of 2.8%. The consensus price target is $38.00.

34. Synchrony Financial (NYSE: SYF) is down 33.6% YTD, despite seeing its shares up a sharp 34% over the past 90 day period. Synchrony is deep into private label credit cards, effectively being a huge credit card issuer under other business and entity’s names. It also offers loans for consumers through other avenues and other businesses. The obvious issue here is rising credit delinquencies and charge-offs due to widespread risks of nonpayment. Synchrony Financial recently closed at $23.91, in a 52-week range of $12.15 to $38.18. It has a market cap of roughly $14 billion and a dividend yield of 3.7%. Analysts have a consensus price target of $28.47.

35. Walgreens Boots Alliance Inc. (NASDAQ: WBA) has not been able to recover from its pre-coronavirus woes and the slower foot traffic to pharmacies and retail has weighed. Walgreens shares are down 33% YTD despite being down only 0.3% over the past 90 days. The stock last closed at $39.46, with a 52-week range of $36.65 to $64.50. It has a market cap of $34 billion and a dividend yield of 4.7%. Walgreens has a consensus target price of $43.00.

36. Sysco Corp. (NYSE: SYY) should have been a defensive stock considering it is the top food distributor, but with the restaurant industry gutted and forced into mass shutdowns, the panic selling in March was far worse than the pre-recession highs of 2008 to the panic selling lows of 2009 on a percentage basis. Sysco has recovered handily from its lows as a “reopening trade,” but the stock is still down 32.8% YTD, despite being up 11% over the past 90 days. Sysco recently closed at $57.46, in a 52-week range of $26.00 to $85.98. It has a market cap of $29 billion and a dividend yield of 3.1%, and it has a consensus target price is $63.50.

37. Loews Corp. (NYSE: L) is classified as property and casualty insurer, but it’s actually a jumbled conglomerate with energy exposure, the Loews hotel chain and injection molded plastic containers for multiple industries. Loews CEO Jim Tisch has even gone as far as to rail against the absurd valuation and call the stock egregiously undervalued in an early-August earnings conference call. Loews stock is down 32.7% YTD, though it is still up 10.7% over the past 90 days despite a recent 10% sell-off. Loews last closed at $35.32, in a 52-week range of $27.33 to $56.88. It has a market cap of nearly $10 billion and a dividend yield of 0.7%, although Loews is thinly followed by analysts.

38. CF Industries Holdings Inc. (NYSE: CF) is a leader in making nitrogen fertilizers and other nitrogen products. While this should be defensive, global economic weakness translates to less food consumption from some of the nations that were on their way to achieving three meals per day. CF Industries stock is down 32.2% YTD, despite being up over 17.3% over the past 90 days. Shares recently closed at $32.37, in a 52-week range of $19.73 to $52.30. It has a market cap of $6.9 billion and a dividend yield of 3.7%. It also has a consensus target price of $38.00.

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39. FLIR Systems Inc. (NASDAQ: FLIR) has been weak in August after an earnings disappointment, despite being a potential COVID-19 winner with its temperature-reading devices. The stock is down 32.1% YTD and down 21.5% over the past 90 days. It last closed at $35.35, in a 52-week range of $23.85 to $59.44. It has a market cap of $4.6 billion and a dividend yield of 1.9%. The consensus target price is $46.89.

40. Edison International (NYSE: EIX) may not be in the same boat as PG&E was, but its electricity distribution systems and corporate base are in California. Edison International operates as Southern California Edison and Edison Energy. Its stock is down 32% YTD and down about 9.2% over the past 90 days. Shares recently closed at $51.26, with a 52-week range of $43.63 to $78.93. The market cap is $19.4 billion, and the dividend yield is 5.0%. It has a consensus target price of $69.29.

The SPDR S&P 500 ETF Trust (NYSEARCA: SPY) is one of the most liquid exchange-traded funds of them all, with nearly 80 million shares trading on an average day. It was up 5.5% YTD coming into August 24, before considering its gain on the day. The index was also up 15% over the past 90 days. The index was up 38.5% from the close on April 1, 2020, and it was a whopping 55% from the V-bottom in March.
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The COVID-19 pandemic has created massive change inside of corporate America. How business gets done going forward will happen with fewer on-site employees in many companies, and going back to packed offices does not seem to be in the cards, even if a vaccine or treatment for the coronavirus comes out this year. One company that is going to struggle with fewer on-site employees is Xerox Holdings Corp. (NYSE: XRX).

The stock sold off drastically with the market during the panic selling in March, but unlike many other technology giants, its shares have not come screaming back with any sort of strength at all. What is becoming very evident after its earnings report is that the company needs to find another merger candidate, even if the effort to leverage up to acquire HP Inc. (NYSE: HPQ) was a misguided effort that should have been done in reverse.

A drop of 3% or 4% in Xerox might not seem bad considering the selling pressure we have seen elsewhere in tech companies this earnings season, but Xerox lost more than half of its value from mid-February through the March selling peak. And the post-earnings reaction now has its shares slightly worse off than those plunge-depth lows in March. Over that same period, the S&P 500 has recovered more than 40% and the index is still trying to get back to positive for the year again.

Xerox reported net income of $27 million on revenues of $1.465 billion. That is down from the reported amounts of $181 million in net income and $2.26 billion a year earlier. The company’s adjusted per-share earnings, which is the relative basis for analyst reports, were $0.15, which managed to beat a consensus loss of $0.07 per share despite a consensus revenue expectation of $1.48 billion.

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What stands out here is that Xerox cited the global COVID-19 crisis as having a significant impact on its revenues as many businesses were closed and as office building capacity restrictions affected customers’ purchasing decisions. Another issue, which also is likely to be permanently changed going forward, is that Xerox saw significantly lower printing volumes on its devices.

The long and short of the matter is that Xerox is going to have to figure out its next-next thing. The chief executive did note that management has now modeled numerous scenarios to ensure flexibility “no matter how the pandemic continues to impact global business,” but it sure seems that Xerox will need more drastic measures than just modeling scenarios.

Note that Xerox had increased manufacturing operations for COVID-19 health care initiatives, such as making disposable FDA-cleared ventilators and hospital-grade hand sanitizer. That is not what investors would have normally expected, and Xerox should be considering if it can continue along that path or related ones.

Xerox shares traded down more than 4% at $15.10 on Tuesday, in a 52-week range of $14.22 to $39.47. Its consensus target price was $18.60.

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Stocks were taking another leg lower on Friday after Thursday’s sell-off. Some of the top stocks are selling off after earnings, and now the momentum plays are all weighing on the market as investors grapple with high valuations and a very weak economy. Many investors missed much of the recovery rally since March and are looking for new ideas for how to be positioned heading into the second half of 2020 and ahead of the election.

24/7 Wall St. reviews dozens of analyst research reports each day of the week in an effort to find new ideas for long-term investors and short-term traders alike. Some analyst reports cover stocks to buy, and others cover stocks to sell or avoid.

Remember that no single analyst report should be used as a sole basis for any buying or selling decision. Consensus analyst target prices are from Refinitiv.

These are the top analyst calls we have seen on Friday, July 24, 2020.

AGNC Investment Corp. (NASDAQ: AGNC) was raised to Buy from Hold with a $15 target price at Deutsche Bank.
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Annaly Capital Management Inc. (NYSE: NLY) was raised to Buy from Hold and its target was raised to $7.75 from $6.75 at Deutsche Bank.

Arbutus Biopharma Corp. (NASDAQ: ABUS) was downgraded to Neutral from Outperform at Robert W. Baird. Shares rose over 100% to $6.20 on Thursday as Moderna failed to invalidate one of their patents for a vaccine program, but Arbutus was up another 13% at $7.00 on Friday morning. Even after the huge pop, it had only a $427 million market cap.

AutoNation Inc. (NYSE: AN) was raised to Overweight from Neutral and its target price was raised to $70 from $53 (versus a $52.55 prior close) at JPMorgan.

Blackstone Group Inc. (NYSE: BX) was reiterated as Overweight and its price target was raised to $64 from $58 (versus a $56.67 close) at Barclays.

Chevron Corp. (NYSE: CVX) was started as Buy with a $120 price target (versus a $91.01 close) at SunTrust Robinson Humphrey.

ConocoPhillips (NYSE: COP) was started as Buy with a $51 price target at SunTrust.

eHealth Inc. (NASDAQ: EHTH) was last seen down about 18% at $114.00 on Friday morning after disappointing numbers in its earnings the prior day. Barclays maintained it as Overweight but cut its target to $140 from $150. SVB Leerink reiterated it as Market Perform and raised its target to $110 from $108.

Enphase Energy Inc. (NASDAQ: ENPH) was started as Market Perform at JMP Securities. Shares closed at $61.67 ahead of the call, with a $54.93 consensus target price.

Exxon Mobil Corp. (NYSE: XOM) was started as Hold with a $41 price target (versus a $43.70 close) at SunTrust.

General Motors Co. (NYSE: GM) was reiterated as Overweight and its target price was raised to $32 from $30 (versus a $26.76 close) at Barclays.
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Impinj Inc. (NASDAQ: PI) was named as the Bull of the Day at Zacks, which said that RFID sensors will connect trillions of products to the Internet of Things. Shares most recently closed at $30.12 and have a consensus price target of $33.50.

Intel Corp. (NASDAQ: INTC) closed down 1% at $60.40 ahead of earnings but was last seen down almost 14% at $51.95 after lowering third-quarter expectations and after further delays on its next-generation chips. Northland Capital downgraded it to Underperform from Market Perform, and BofA Securities downgraded it to Neutral from Buy. Deutsche Bank downgraded its rating to Hold from Buy, and Bernstein downgraded to Underperform from Market Perform. Roth Capital downgraded Intel to Neutral from Buy, and Barclays downgraded it to Underweight from Equal Weight. The consensus target price will be dropping handily after the downgrades and target price cuts, but that consensus target price was $62.72 before this big drop.

Penumbra Inc. (NYSE: PEN) was named as the Zacks Bear of the Day stock. The firm said that growth has stalled for this innovator in blood clot removal. Shares last closed at $207.19 and have a consensus price target of $199.75.

PulteGroup Inc. (NYSE: PHM) was up 4.7% at $41.29 on Thursday and was indicated up 3% at $42.55 on Friday. Raymond James raised it to Outperform from Market Perform and with a $48 target price.

Seattle Genetics Inc. (NASDAQ: SGEN) was downgraded to Neutral from Overweight but its price target was raised to $165 from $155 (versus a $172.90 close) at Piper Sandler.

Skyworks Solutions Inc. (NASDAQ: SWKS) was reiterated as Outperform and its target price was raised to $155 from $120 (versus a $135.34 close) at Raymond James. Benchmark reiterated a Buy rating and raised its target price to $155 from $120 as well.

Tesla Inc. (NASDAQ: TSLA) gapped up big on Thursday after earnings but closed down almost 5% at $1,513.07 on the same day, and it was indicated down another 4.6% at $1,443.10 on Friday. Daiwa Capital downgraded Tesla to Neutral from Outperform but raised its price target to $1,650 from $1,500.

Tractor Supply Co. (NASDAQ: TSCO) was reiterated as a Strong Buy and its target price was raised to $170 from $135, compared with a $146.00 prior closing price.

Twitter Inc. (NYSE: TWTR) was reiterated as a Neutral at Rosenblatt, and its target price was raised to $33 from $30. The most recent closing price was $38.44. Twitter closed up 4% at $38.44 ahead of earnings but was indicated down 1% on Friday. Its prior consensus target price was $33.76.

Union Pacific Corp. (NYSE: UNP) was reiterated with a Strong Buy rating and its target price was raised slightly to $198 from $194 (versus a $175.00 close) at Raymond James.

Xerox Holdings Corp. (NYSE: XRX) was downgraded to an Underweight rating from Neutral and its target price was cut to $20 from $23 (versus a $16.81 close) by JPMorgan.

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The Jefferies analysts are very positive on the data center and medical real estate investment trusts now as they offer some of the best potential for total return over the balance of 2020.

Goldman Sachs has seven oil and gas stocks for big upside on its prized Conviction Buy List.

Also, here 10 stocks from Morgan Stanley riding the demand for hydrogen fuel.

Thursday’s top analyst upgrades and downgrades included Apache, Check Point Software Technologies, Chipotle Mexican Grill, Electronic Arts, Inogen, Microsoft, Moderna, Shopify, Tesla and Varonis Systems.
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There are good times to attempt mergers and there are bad times to attempt mergers. There are also good mergers and there are some bad ones. In the case of the Xerox Holdings Corp.’s (NYSE: XRX) attempt to leverage up and acquire HP Inc. (NYSE: HPQ), this was a bad merger to start with and it was also at a very bad time. Xerox formally put the deal on hold earlier, but now Xerox has formally withdrawn all efforts to acquire HP.

According to Xerox, the deal was killed because of the current global health crisis and the current macroeconomic conditions and market turmoil in the wake of the COVID-19 pandemic. Xerox noted that the current environment is not conducive to continuing its pursuit to make the acquisition.

On top of a bad economy, this merger was one that would require substantial debt because HP was the target and it was much larger in market value than Xerox. As a result of the above items, that $30 billion tender offer and the proxy fight are over.

While investors should probably be glad this deal was squashed, the problem that this leaves is that the market turmoil will make it hard for other companies to use leverage to go out and make an opportunistic acquisition while share prices and the economy are both very far down from highs.

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The justification note in the Xerox press release said:

There remain compelling long-term financial and strategic benefits from combining Xerox and HP. The refusal of HP’s Board to meaningfully engage over many months and its continued delay tactics have proven to be a great disservice to HP stockholders, who have shown tremendous support for the transaction.

To prove the leverage and size: Xerox’s $4 billion market cap is far less than the nearly $25 billion market cap for HP. If this was such a great merger, HP would have likely turned the tables and tried to acquire Xerox. And for a hint: that may have been the ploy the whole time. It is more than obvious now that neither company really has strong clarity on their guidance for the coming months.

HP stock closed down 2.7% at $17.36 on Tuesday, and the after-hours reaction had the shares down another 1.5% at $17.09.

Xerox stock closed up 5.5% at $18.94, and its shares were not showing much direction in Tuesday’s after-hours trading.

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Some mergers are good ideas and others are not. The case of Xerox Holdings Corp. (NYSE: XRX) trying to leverage its books with a mountain of debt to acquire HP Inc. (NYSE: HPQ) fell into the camp of not a good idea. With the growing market panic and slowing economy, Xerox announced that it was pausing its campaign to acquire HP and noted its own actions about the coronavirus.

As far as how this was going to work, it would be with a figurative mountain of debt from creditors. HP’s market cap was still $25 billion on last look, and it had been $34 billion at a recent peak. Xerox’s market cap was just $5.1 billion. As far as why this is a bad idea, how many people think that taking on billions of dollars worth of debt on a company that is very economically sensitive is a good idea heading into what may be a rapidly slowing economy?

If Xerox finds that the market is a bit confused about the newest merger/non-merger announcement, it was just three days earlier that Xerox filed its preliminary proxy statement for a special meeting to approve a share issuance for the transactions. On that front, Xerox was to seek to amend its charter to increase the number of authorized common shares. Xerox did not set a record date or a meeting date for the special meeting.

In the release tied to the proxy data three days ago, Xerox reaffirmed its tender offer acquire HP for $24.00 per share. The terms were calling for $18.40 per share in cash and also 0.149 Xerox shares for each HP share. At that time, Xerox also noted that the recent trading halt around circuit breakers on the New York Stock Exchange was not a “failure of any condition to its offer to acquire HP.”

It should go without saying that business conditions have dwindled in the wake of the coronavirus getting out of China and turning into a global pandemic. Companies such as Apple and Microsoft already have dialed back their guidance, as have OEM manufacturers and many other companies down the industrial and services chain. If a company is not issuing a formal warning at this time, it is more than likely to simply withdraw its annual guidance until it can see how long the coronavirus sticks around and wrecks the global economy.

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John Visentin, Xerox vice chairman and chief executive officer, said on Friday:

In light of the escalating COVID-19 pandemic, Xerox needs to prioritize the health and safety of its employees, customers, partners and affiliates over and above all other considerations, including its proposal to acquire HP. As we closely monitor reports from government and healthcare leaders across the globe and work with colleagues in the business community to minimize the spread and impact of the virus, we believe it is prudent to postpone releases of additional presentations, interviews with media and meetings with HP shareholders so we can focus our time and resources on protecting Xerox’s various stakeholders from the pandemic.

The Xerox press release also indicated that trading halts and market declines are not an issue in this case:

For the avoidance of doubt, Xerox does not consider the market decline since the date of its offer or the temporary suspension of trading in HP shares that occurred on March 10, 2020 and March 12, 2020 as a result of market-wide circuit breakers procedures to constitute a failure of any condition to its offer to acquire HP. Xerox will take the same view on any future temporary trading halts, unless otherwise stated in advance.

24/7 Wall St. has suggested that if this merger really is a good idea, why is it not being done in reverse to avoid piling on a mountain of debt?

After about 90 minutes of trading on Friday, Xerox shares were down 0.3% at $23.81, as well as down from a 52-week high of $39.47. HP’s shares were up 0.3% at $17.54, but that is down from a 52-week high of $23.93.

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Stocks have been hitting all-time highs, and Tuesday’s sell-off from the coronavirus impact and fears from China felt more like a major excuse profit-taking than systemic fear. Stocks were also indicated to open a tad higher on Wednesday.

Many investors still have not made portfolio changes during and after a very strong market in 2019. The markets are treating a risk-on trade as being better than sell-the-news at this time, despite being in overbought territory heading into earnings season. This is also an election year in which much is at stake, and strategists are by and large calling for single-digit percentage gains in 2020.

24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for traders and long-term investors alike. Some of the daily analyst calls cover stocks to buy, while some calls cover stocks to sell or to avoid.

We have provided these analyst calls in a quick-hit summary for easy reading, and additional comments and trading data have been added on many calls. The consensus analyst price targets and other valuation metrics are from the Refinitiv sell-side research service.

These are the top analyst upgrades, downgrades and initiations from Wednesday, January 22, 2020.

Aimmune Therapeutics Inc. (NASDAQ: AIMT) was reiterated as Outperform with a $79 target price (versus a $33.08 prior close) at Wedbush Securities, with the firm noting that the Palforzia peanut allergy treatment is likely to hit the United States and European Union in 2020.

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Allergan PLC (NYSE: AGN) was downgraded to Equal Weight from Overweight at Wells Fargo.

Amazon.com Inc. (NASDAQ: AMZN) closed up 1.5% at $1,892.00 on Tuesday and was indicated marginally higher on Wednesday. Pivotal Research reiterated its Buy rating and raised its target to $2,250 from $2,100. Amazon had a $2,177.93 consensus target price, but it was among the 10 tech leaders seeing waves of recent target price hikes.

Aqua America Inc. (NYSE: WTR) was downgraded to Neutral from Buy at Merrill Lynch.

Arconic Inc. (NYSE: ARNC) was downgraded to Underperform from Neutral at Longbow Research.

ArTara Therapeutics Inc. (NASDAQ: TARA) was started with a Buy rating and a $45 target price (versus a $28.34 close) at Ladenburg Thalmann.

Aspen Group Inc. (NASDAQ: ASPU) was named as the Bull of the Day at Zacks, which said that the swing from losses to profits often brings in a lot of new investors and this is just what is expected for this stock. Shares most recently closed at $8.36, with a consensus price target of $11.00.

Boeing Co. (NYSE: BA) was down 3.3% to $313.27 on Tuesday, and its shares hit a 52-week low of $305.75 on news that it now doesn’t see a return of the 737 Max until mid-2020. Vertical Research downgraded Boeing to Hold from Buy, with the firm lowering its target price to $294 from $388 and predicting a disastrous quarterly earnings report. Credit Suisse maintained its Neutral rating and trimmed its target price to $321 from $324.

Broadcom Inc. (NASDAQ: AVGO) was reiterated as Buy with a $360 target price at New Street Research. Shares closed down 0.2% at $308.07 ahead of the call, and the consensus target price is $349.93.

Carpenter Technology Corp. (NYSE: CRS) was named as the Zacks Bear of the Day stock. The firm said that a recent miss has analysts pulling future earnings estimates down and this has hurt the valuation as well. Shares last closed at $43.98 and have a consensus price target of $56.00.

Cisco Systems Inc. (NASDAQ: CSCO) was reiterated as Overweight and its target price was raised to $54 from $52 (versus a $48.80 close) at KeyBanc Capital Markets. Cisco has a consensus target price of $52.22, and its 52-week range is $43.40 to $58.26.

Citizens Financial Group Inc. (NYSE: CFG) was reiterated as Buy and the target price was raised to $44 from $42 (versus a $40.09 close) at Argus.

Coca-Cola FEMSA SAB de C.V. (NYSE: KOF) was raised to Buy from Neutral at Goldman Sachs.

Comerica Inc. (NYSE: CMA) closed down 3.5% at $66.31 on Monday’s post-earnings reaction. Citigroup raised it to Neutral from Sell with a $70 target price.

CubeSmart (NYSE: CUBE) was started as Neutral at JPMorgan.

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Cue Biopharma Inc. (NASDAQ: CUE) was started as Outperform with a $22 price target (versus a $15.00 close) at JMP Securities.

Eiger BioPharmaceuticals Inc. (NASDAQ: EIGR) was reiterated as Buy and its target was raised to $31 from $28 (versus a $14.18 close) at Ladenburg Thalmann.

Estee Lauder Companies Inc. (NYSE: EL) was downgraded to Neutral from Buy at Citigroup.

Eversource Energy (NYSE: ES) closed at $89.80, and Janney downgraded it to Neutral from Buy now that it hit the firm’s $88 fair value estimate.

Extra Space Storage Inc. (NYSE: EXR) was started as Neutral at JPMorgan.

International Business Machines Corp. (NYSE: IBM) closed up 0.6% at $139.17 ahead of earnings, but Big Blue shares were up 4% at $144.65 in Wednesday’s early post-earnings reaction after a surprise revenue gain. Wedbush maintained a Neutral rating and $155 target price, and it said the report was a low-quality “beat and raise” quarter as bookings continue to show more share loss as services revenues looked below expectations. Citigroup maintained its Neutral rating and raised its target to $155 from $140. Credit Suisse reiterated its Outperform rating on IBM.

Kansas City Southern (NYSE: KSU) was downgraded to Hold from Buy at Deutsche Bank.

Mastercard Inc. (NYSE: MA) was reiterated as Buy and its target price was raised to $375 from $317 (versus a $321.93 close) at Citigroup. It had a consensus target price of $334.85, and its 52-week high was seen at $325.66 just a day earlier.

NeoPhotonics Corp. (NASDAQ: NPTN) was raised to Buy from Hold at Needham, and the target price of $11 compared with an $8.58 prior close and an $8.43 prior consensus target price.

Netflix Inc. (NASDAQ: NFLX) closed down about 0.5% at $338.11 ahead of earnings, but the stock was indicated up almost 2% at $344.00 after earnings, with the company showing it can still grow subscribers with stronger content releases even among competitive threats that may take some customers. Wedbush maintained Netflix as Underperform and lowered the target price to $173 from $188. Credit Suisse reiterated its Outperform rating, and Deutsche Bank reiterated its Buy rating and raised its target price to $400 from $395.

Rio Tinto Group PLC (NYSE: RIO) was downgraded to Market Perform from Outperform at BMO Capital Markets.

Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM) closed down 2.8% at $29.84 in New York trading on Tuesday. HSBC downgraded it to Reduce from Hold with a $25 target price, and its American depositary shares were indicated down almost 1% at $29.60 on Wednesday.

Tesla Inc. (NASDAQ: TSLA) became the first car company (or is it a tech company?) to hit $100 billion in market cap after closing up 7.2% at $547.20. And its shares were indicated up another 4% at $571.50 on Wednesday morning. Wedbush maintained it as Neutral but raised the target price to $550 from $370.

Verizon Communications Inc. (NYSE: VZ) was started as Hold with a $63 target price (versus a $60.32 close) at Deutsche Bank.

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Visa Inc. (NYSE: V) was reiterated as Buy and its target price was raised to $235 from $209 (versus a $207.29 close) at Citigroup. Visa had a consensus target price of $214.82, and its 52-week high was seen at $208.39 just on Tuesday.

Xerox Corp. (NYSE: XRX) was reiterated as Hold at Argus, with the firm still cutting estimates based on its joint venture disposition.

Zions Bancorp. N.A. (NASDAQ: ZION) was downgraded to Neutral from Buy at Merrill Lynch.

Ten tech leaders are seeing major analyst upgrades and target hikes ahead of earnings for upside in 2020.

Tuesday’s top analyst upgrades and downgrades included Advanced Micro Devices, Alibaba, AIG, Baidu, Broadcom, Costco, Intel, Ping, Pinterest, RingCentral, Shopify, Uber and many more.

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A $30 billion offer from Xerox Holdings Corp. (NYSE: XRX) to acquire HP Inc. (NYSE: HPQ) was refused earlier this week by HP’s board of directors. In its letter, HP said it had “unanimously concluded that [the offer] significantly undervalues HP and is not in the best interests of HP shareholders.”

Thursday morning, Xerox CEO and Vice Chair John Visentin sent HP CEO Enrique Lores and Chair Chip Bergh a letter expressing surprise that HP “summarily rejected our compelling proposal.” Visentin sounded shocked, shocked, at HP’s rejection.

Xerox had offered $22 a share in cash and stock for HP, $17 in cash and 0.137 shares of Xerox stock. The offer represented a premium of 21% to HP’s stock price and had a total value of more than $30 billion.

Lores and Bergh should not be shocked, however, at Visentin’s promise to launch a campaign to win over HP shareholders. Unless HP and Xerox can reach an agreement over a mutual due diligence schedule by Monday, November 25, Visentin clearly stated his intention:

Xerox will take its compelling case to create superior value for our respective shareholders directly to your shareholders. The overwhelming support our offer will receive from HP shareholders should resolve any further doubts you have regarding the wisdom of swiftly moving forward to complete the transaction.

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Visentin also rejects HP’s contention that the offer is highly conditional and uncertain: “There will be NO financing condition to the completion of our acquisition of HP.”

Visentin cited HP’s own financial advisor, Goldman Sachs, which “set a $14 price target with a ‘sell’ rating for HP’s stock after you announced your restructuring plan on October 3, 2019. Our offer represents a 57% premium to Goldman’s price target and a 29% premium to HP’s 30-day volume weighted average trading price of $17.”

Launching a proxy fight can be a drawn-out affair and it is almost always expensive. There’s no reason to believe that HP will just roll over and take an offer that has been rejected already. That would in fact not be in shareholders’ interest. HP is betting that either it can squeeze more out of Xerox (doubtful) or that a white knight will ride to the rescue with a higher bid (also doubtful). White knights for PC and printer makers are scarce these days.

Xerox is betting that no competing bid can be drummed up and that HP shareholders will figure that out and take this once-rejected deal because it’s the best offer they’ll get.

As for HP shareholders, the old adage remains sound: You pays your money and you takes your chances. Want to bet on the horse that got you to this point or take a chance on a different one? Shareholders have until Monday at 5:00 p.m. ET to place their bets.

Xerox shares traded up about 0.6% in the mid-morning Thursday, at $38.51 in a 52-week range of $18.58 to $39.47.

HP stock traded up about 0.1% at $19.72, in a 52-week range of $15.93 to $24.17.

If there’s an immediate advantage, Xerox appears to have it, but investors aren’t flocking to one side or the other yet.

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To no one’s surprise, HP Inc. (NYSE: HPQ) on Sunday rejected the buyout offer from Xerox Holdings Corp. (NYSE: XRX). The rejection, signed by CEO Enrique Lores and Chair Chip Bergh, said that HP’s board had “unanimously concluded that it significantly undervalues HP and is not in the best interests of HP shareholders.”

Lores and Bergh cited another concern about the Xerox offer: “… the highly conditional and uncertain nature of the proposal, including the potential impact of outsized debt levels on the combined company’s stock.” Xerox had offered $22 a share in cash and stock for HP, $17 in cash and 0.137 shares of stock. The offer represented a premium of 21% to HP’s stock price and had a total value of more than $30 billion.

At the time of Xerox’s offer (November 5), the company had a market cap of around $8.3 billion, while HP was valued at about $28.4 billion. In its offer letter, Xerox said it had received a “highly confident letter” from Citi “evidencing their certainty in arranging financing for the transaction.”

That’s all well and good, but it’s pretty certain that Xerox would have had to add about $25 billion in new debt in order to get the deal done. Standard & Poor’s issued a note following the offer pointing out the significant new debt Xerox would have to assume and how that debt may push both firms’ credit ratings down.

This is how Fitch ratings concluded a note on the proposed transaction:

HP is solidly investment grade while Xerox is speculative grade. Investor appetite for such a sizable debt issuance in a secularly challenged industry is an open question.

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All that said, a combination of Xerox and HP makes some sense if the positions are reversed and HP makes an offer for Xerox.

Both trade as value stocks, and these have returned to favor among investors in recent weeks. One way to play defense during the current trade war is to put more attention on value stocks than on momentum stocks. Cliff Asness of AQR Capital Management wrote in a recent blog post, “value is quite cheap [now] compared to history. … In other words, value does not look like a factor with too many people chasing it today, … rather it looks like a shunned out-of-favor factor.”

An HP-Xerox combination may make sense if the bigger fish swallows the smaller one. The resulting balance sheet would not be bloated with debt and likely would have a better price-to-earnings ratio. An added benefit is that a sweet enough offer from HP could get activist investor Carl Icahn on board (he owns about 11% of Xerox).

Xerox shares traded down nearly 3% in Monday’s premarket, at $37.80 in a 52-week range of $18.58 to $39.38. The 12-month consensus price target on the shares is $41.00 and Xerox pays a dividend yield of 2.57%.

HP stock traded down about 1.1% at $19.95 a share, in a 52-week range of $15.93 to $24.17. The price target is $19.95, and HP pays a yield of 3.49%.
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Stocks were mixed in the premarket on Tuesday and the day was just looking for direction after last week’s all-time highs. Investors still have a lot of pressing issues and risks to consider now that the bull market is over 10 and a half years old. This is a time for investors to consider what changes they should be making for their portfolios and assets heading into late 2019 and as 2020 approaches.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new ideas for traders and long-term investors alike. Some of the daily analyst calls cover stocks to buy, while some cover stocks to sell or to avoid.

We have provided these calls in a quick-hit summary for easy reading, and additional comments and trading data have been added on some of the calls. The consensus analyst price targets and other valuation metrics are from the Refinitiv sell-side research service.

These are the top analyst upgrades, downgrades and initiations for Tuesday, November 12, 2019.

Albermarle Corp. (NYSE: ALB) was maintained as Buy but the target price was lowered to $87 from $95 at UBS. RBC downgraded it to Sector Perform from Outperform and cut its price target to $71 from $77. Berenberg cut price target to $72 from $75 while maintaining its Hold rating.

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Amgen Inc. (NASDAQ: AMGN) was started as Buy with a $256 target price (versus a $220.70 prior close) at SunTrust Robinson Humphrey.

Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) was started with a Buy rating and a $225 target price at SunTrust Robinson Humphrey.

Apollo Investment Corp. (NASDAQ: AINV) was downgraded to Sector Perform from Outperform with a $17 target price (versus a $16.36 close) at RBC Capital Markets.

Applied Materials Inc. (NASDAQ: AMAT) was reiterated as Outperform and its target was raised to $62 from $58 at Wells Fargo. Applied Materials closed up 1% at $56.59 on Monday and was indicated up 1% at $57.30 on Tuesday, with a prior consensus target price of $55.68.

Ares Capital Corp. (NASDAQ: ARES) was started as Outperform with a $20 target price (versus an $18.55 close) at RBC Capital Markets. It has an 8% or so dividend as a business development company, as well as a 52-week range of $14.50 to $19.28 and a consensus target price of $19.46.

BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) was started with a Buy rating and a $110 target price (versus a $75.33 close) at SunTrust Robinson Humphrey.

Biogen Inc. (NASDAQ: BIIB) was started with a Buy rating and a $337 target price (with a $294.14 close) at SunTrust Robinson Humphrey.

Cellular Biomedicine Group Inc. (NASDAQ: CBMG) was downgraded to Neutral from Outperform with a $19 target price (versus a $17.67 close) at Robert W. Baird.

Check Point Software Technologies Ltd. (NASDAQ: CHKP) was started as Neutral with a $123 target price (versus a $115.87 close) at Goldman Sachs. The prior consensus target price was $119.25, and the 52-week trading range is $98.57 to $132.76.

CONMED Corp. (NASDAQ: CNMD) was started as Overweight with a $136 target price (versus a $109.99 close) at JPMorgan.

CRISPR Therapeutics A.G. (NASDAQ: CRSP) was raised to Outperform from Perform with a $65 target price at Oppenheimer.

CrowdStrike Holdings Inc. (NASDAQ: CRWD) was raised to Neutral from Sell but the target price was lowered to $55 from $66 (versus a $46.20 close) at Goldman Sachs. Its prior consensus target price was $83.89, and its post-IPO range has been $44.58 to $101.88.

CSX Corp. (NYSE: CSX) was downgraded to Hold from Buy and the price target was lowered to $74 from $82 at Deutsche Bank.

Devon Energy Corp. (NYSE: DVN) was reiterated as Outperform and the target price was raised to $33 from $31 (versus a $22.53 close) at Wells Fargo.

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DXC Technology Co. (NYSE: DXC) was maintained as Outperform at RBC Capital Markets, but the firm’s target price was slashed to $43 from $67. Wells Fargo maintained its Outperform rating but lowered its target to $30 from $32, and Cantor Fitzgerald reiterated its Neutral rating and lowered its target to $28 from $42. Shares closed down 2.2% at $29.40 on Monday and were trading up over 4% at $30.60 in Tuesday’s early trading indications after earnings.

Eaton Corp. (NYSE: ETN) was downgraded to Hold from Buy with a $96 target price (versus a $91.88 close) at HSBC.

EnPro Industries Inc. (NYSE: NPO) was named as the Zacks Bear of the Day stock. The firm said that a recent miss sent estimates down for this year as well as for next year. Shares last closed at $66.93, with a consensus price target of $80.00.

Kroger Co. (NYSE: KR) was raised to Hold from Sell with a $27 target price (versus a $26.61 close) at Deutsche Bank.

Oceaneering International Inc. (NYSE: OII) was started as Buy and a $17 price objective (versus a $14.01 close) at Merrill Lynch.

OpenText Corp. (NASDAQ: OTEX) was up 2.3% at $42.52 after announcing it was acquiring Carbonite. RBC Capital Markets reiterated its Outperform rating and raised its target price to $50 from $47.

Regions Financial Corp. (NYSE: RF) was downgraded to Market Perform from Outperform at BMO Capital Markets.

Rent-A-Center Inc. (NASDAQ: RCII) was raised to Buy from Hold with a $28 target price (versus a $22.43 close) at Stifel.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) was started as Hold with a $360 target price at SunTrust Robinson Humphrey.

Slack Technologies Inc. (NYSE: WORK) was maintained as Buy but the target price was lowered to $28 from $38 at MKM Partners. The prior consensus target price was $32.30.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) was raised to Neutral from Underweight with an $8 target price (versus a $9.33 close) at JPMorgan.

Ultra Clean Holdings Inc. (NASDAQ: UCTT) was named as the Bull of the Day at Zacks, which said that this is one of the stocks that was hitting new highs all last week. Shares most recently closed at $22.80, with a consensus price target of $21.70.

Urban Outfitters Inc. (NASDAQ: URBN) was reiterated as Neutral but the target price was raised to $33 from $20 at
Wedbush Securities.

Verint Systems Inc. (NASDAQ: VRNT) was started with a Buy rating and a $58 target price at Goldman Sachs. The stock was up 0.3% at $47.78 ahead of the call, and it had a consensus target price of $68.00.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) was started with a Buy rating and a $235 target price at SunTrust Robinson Humphrey.

Western Union Co. (NYSE: WU) was downgraded to Neutral from Buy at Guggenheim.

Xerox Corp. (NYSE: XRX) was raised to Neutral from Underweight and its target price was raised to $38 from $31 (versus a $38.36 close) at JPMorgan.

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JPMorgan started coverage of many insurance sector stocks on Tuesday:

• Marsh & McLennan Companies Inc. (NYSE: MMC): Buy with a $118 target price (versus a $103.41 prior close)
• Allstate Corp. (NYSE: ALL): Buy with a $120 price target (versus a $109.38 close)
• AON PLC (NYSE: AON): Neutral with a $219 target (versus a $194.38 close)
• Chubb Ltd. (NYSE: CB): Neutral with a $159 target (versus a $151.32 close)
• Travelers Companies Inc. (NYSE: TRV): Neutral with a $140 target (versus a $133.54 close)
• Progressive Corp. (NYSE: PGR): Neutral with a $79 target (versus a $73.73 close)

Monday’s top analyst upgrades and downgrades included Baidu, BellRing, Chegg, Chewy, Cisco Systems, Expedia, Home Depot, Nvidia, Occidental Petroleum, Qualcomm, Tesla and many more.

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There has to be some joke about two of America’s oldest technology giants thinking about a merger. The news was confirmed during the week of November 8 that Xerox Corp. (NYSE: XRX) has made a proposal to combine with HP Inc. (NYSE: HPQ). Xerox was ready to offer more than $30 billion for HP. Needless to say, how the smaller Xerox would do a Pac-Man gobble up of HP comes with some serious questions.

These two companies have been involved in other acquisitions over time, as well as divesting, cost cuts and restructurings. The latest move would have an impact on the PC and printer markets, and it might come with a massive debt load.

The investing public has a simple and fair question to ask: To save all this trouble and to prevent a massive debt-load from being forced, if there is so much merit here, why doesn’t HP just bite the bullet and buy Xerox?

Credit ratings agencies and Wall Street analysts are not the last word when it comes to getting a merger done, and companies often are willing to take a short-term credit downgrade for a better position in the future.

A transaction of this sort would be complicated further by the notion that activist investor Carl Icahn owns an 11% stake in Xerox and has a board seat. One issue that might help a transaction along at least a little is that Xerox is expected to receive a check for $2.3 billion from the sale of its 25% stake in its Fuji Xerox joint venture. Reports also indicated that Xerox had an informal funding commitment for the potential HP acquisition.

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As far as what the future company might look like to future investors, Xerox and HP’s combined print business would have close to $30 billion in annualized revenues and total revenues of about $70 billion.

A UBS report indicated that consolidation in the printing industry makes sense considering the pressure and the relatively large number of players competing for it. HP was noted as having 40% of the desktop printing, but a much smaller share in networked enterprise printing. Xerox is said to have roughly 15% of the networked printing share by revenues, but still behind Canon and Ricoh.

Toni Sacconaghi, an analyst for Bernstein, opined that perhaps Xerox is actually just trying to force HP into making an offer to acquire the company. Xerox is not investment grade, but HP is, and Xerox likely would have $25 billion or so in net debt. Still, he thinks the $2 billion in combined synergies under a deal that was touted in reports may be a bit high and the deleveraging could take five years or more.

Standard & Poor’s did not take any credit ratings action on the news, but it did issue a note on Friday, indicating that a Xerox move to acquire HP would come with significant debt and would bring downward credit rating pressure on the ratings for both companies.

There already was some evidence that the merger would damage the credit ratings as the deal’s structure looked during the week. The Wall Street Journal reported on Thursday that HP’s bond issue due in 2041 fell about 6% in price, and that Xerox’s maturity in 2039 fell about 5% on the news. HP’s current BBB investment-grade rating is better than Xerox’s BB speculative (junk) rating.

HP’s shares closed up 0.67% at $19.52 on Friday, almost 10% higher than the $17.78 close the prior Friday. Refinitiv’s consensus analyst target price on HP is $19.62, and the shares have a 52-week trading range of $15.93 to $25.49.

Xerox closed up 4.1% at $38.85 a share on Friday, for a gain of 16% from the prior Friday’s close of $33.48. The consensus target price is just $38.00, and shares have traded in a 52-week range of $18.58 to $39.38.

At the heart of the matter, perhaps more than anything else in this equation, is that size does matter. HP’s market cap is about $31.5 billion, and Xerox has a market cap of about $8.6 billion.

Rather than a weaker credit-rating company having to take on $20 billion or so in debt, HP already had close to $5 billion in cash and long-term liabilities of close to $9 billion at the end of its last quarter. With Xerox shares already up close to 90% in 2019 alone, HP might not even have to pay much of a premium since the shares rallied on the news. There is an obvious answer here, and that’s that if the combination really has so much merit, then perhaps HP should leave the future combined company less riddled with debt.

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If HP acquired Xerox you would still have two value companies combined, but if Xerox takes on this much debt to do a deal, you would just have a relatively low price-to-earnings ratio and a massively bloated balance sheet.

Fitch Ratings had already downgraded Xerox’s long-term and senior unsecured ratings by one notch to BB back in March of this year. Fitch Ratings issued a note on Friday warning about significant debt funding to get this deal done, and it noted disruption and secular change in their industries:

Xerox’s confirmed buyout offer for HP could provide strategic benefits for both companies due to challenging secular trends in commercial printing and personal computers, but any potential transaction would likely require significant debt funding given HP’s large size, says Fitch Ratings. HP is more than three times larger on an enterprise value basis. Rating implications would depend on deal structure, assumed revenue and cost synergies, intermediate-term leverage expectations, financial policy and the business risk profile of the combined entity.

Consolidation in declining markets is not unusual, particularly when emerging technology disrupts traditional business models. Therefore, M&A event risk is elevated in sectors experiencing disruption and secular change as companies look to transform business models and remain competitive. Transactions are often leveraging with long-term value creation that is uncertain. Rarely do smaller entities acquire larger companies but, if financing is available, it is not inconceivable, as evidenced by Dell’s purchase of EMC in 2015. Xerox is expected to receive $2.3 billion of proceeds from the sale of its 25% stake in it Fuji Xerox JV and, according to media reports, has an informal funding commitment for the potential HP acquisition.

Assuming Xerox offered $17 per share in cash and $5 per share in stock, as reported by the media, incremental debt financing could be about $20 billion and pro forma core leverage between 3.4x and 4.2x, depending on synergy capture. HP and Xerox have relatively low stand-alone leverage of around 1.5x and 1.8x, respectively, but have different revenue growth, profitability and FCF prospects. HP is solidly investment grade while Xerox is speculative grade. Investor appetite for such a sizable debt issuance in a secularly challenged industry is an open question.

HP’s confirmation statement earlier in the week said:

As reviewed at HP’s most recent Securities Analyst Meeting, we have great confidence in our multi-year strategy and our ability to position the company for continued success in an evolving industry, particularly given the multiple levers available to drive value creation.

Against this backdrop, we have had conversations with Xerox Holdings Corporation (NYSE: XRX) from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday.

We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders.

By combining two dinosaurs, there might be a new species called the HProx.

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Xerox Holdings Corp. (NYSE: XRX) had a market cap of about $8.1 billion at the market close Tuesday. HP Inc. (NYSE: HPQ) had a market cap of about $26.3 billion. But Xerox, feeling flush perhaps after scoring $2.3 billion for selling its share of Fuji Xerox to Fujifilm Holdings, is reportedly considering making an offer to acquire HP.

At last night’s closing price of $18.40 for HP shares, Xerox is looking to pay around $27 billion, without a premium. At a 30% premium, Xerox is looking at a figure north of $35 billion.

Can this possibly happen? Xerox’s largest shareholder is Carl Icahn, who owns just over 10% of the outstanding shares. In January of last year, Icahn led a battle against a proposed Xerox-Fujifilm deal that would have given the Japanese company majority ownership of Xerox.

Icahn and another activist investor, Darwin Deason, succeeded in scuttling that deal, arguing that it undervalued Xerox. The activists then struck a deal with Xerox that gave them control of the company’s board. A new chief executive officer, John Visentin, was installed, and he has been vigorously pursuing cost-cutting ever since. The payoff for Xerox shareholders has been a 12-month share price gain of around 25%.

It’s a cinch that if The Wall Street Journal’s report of talks between Xerox and HP is accurate, Xerox is acting with the blessing of Icahn and presumably Deason.

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As part of the $2.3 billion sale of Xerox’s stake in Fuji Xerox, Fujifilm agreed to drop its $1 billion lawsuit against Xerox for walking away from the 2018 deal that would have given the Japanese firm control of Xerox.

Perhaps Fujifilm is still interested in acquiring control of Xerox and has struck a deal with Icahn and Deason to help acquire HP and then to acquire the combined company at a price that the activists are seeking. After all, there’s only so much cost that Visentin can wring out of Xerox, and Icahn probably doesn’t want to get stuck with a company that is selling printers and PCs in an age of smartphones and cloud computing.

Now that the possible buyout is public, we’re likely to see analysts weigh in on the merits. That probably will help Icahn and Deason make up their minds about how hard to chase HP.

Xerox shares traded down about 3.2% in Wednesday’s premarket, at $35.20 in a 52-week range of $18.58 to $36.99. The high was posted on Tuesday, and the 12-month price target is $38.00.

HP stock traded up about 7.7%, at $19.84 in a 52-week range of $15.93 to $25.72. The 12-month price target on the stock is $19.27.

Fujifilm stock, which trades over the counter in the United States, closed up 3.4% on Tuesday, at $45.61 in a 52-week range of $36.53 to $51.63 and with a 12-month price target of $50.00.

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Stocks managed to close marginally lower on Tuesday ahead of Wednesday’s FOMC announcement, and the CME FedWatch Tool’s 94.1% probability for a rate cut at the start of the week was up to 97.3% on last look. Stocks were indicated to open up less than 0.1% on Wednesday and the direction of the day felt far from certain. The S&P 500 has just hit an all-time high this week, and earnings season is so far making all those imminent recession calls by the media look a bit ridiculous. Still, investors have a lot of negative issues to consider, and the bull market is now well over 10 years old. This is a time for investors to consider changes they should be making for their portfolios and assets heading into late 2019 and as 2020 approaches.

24/7 Wall St. reviews dozens of analyst research reports each day of the week to find new ideas for traders and long-term investors alike. Some of the daily analyst calls cover stocks to buy, while some cover stocks to sell or to avoid.

We have provided these calls in a quick-hit summary for easy reading, and additional comments and trading data have been added on some of the calls. The consensus analyst price targets and other valuation metrics are from the Refinitiv sell-side research service.

These are the top analyst upgrades, downgrades and initiations for Wednesday, October 30, 2019.

Advanced Micro Devices Inc. (NASDAQ: AMD) closed down almost 2% at $33.03 on Tuesday and was indicated down almost 1% more at $32.75 in the wake of its earnings report. Wedbush Securities reiterated AMD as Outperform with a $39 target, noting that it had strong results and better than expected EPYC sales. UBS maintained its Neutral rating but raised its target price to $34 from $31.

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AMAG Pharmaceuticals Inc. (NASDAQ: AMAG) was downgraded to Underweight from Neutral and the target price was lowered to $6 from $9 at Piper Jaffray. Shares closed at $13.33 on Tuesday, but they were indicated down about 24% at $10.15, after notice of an FDA advisory committee meeting. The prior consensus target price was $11.88.

AMC Networks Inc. (NASDAQ: AMCX) down 3.9% at $44.96 on Tuesday and was indicated down another 1.5% at $44.30 on Wednesday. Merrill Lynch downgraded it to Neutral from Buy.

Analog Devices Inc. (NASDAQ: ADI) was raised to Outperform from Market Perform with a $120 target price (versus a $108.06 prior close) at Raymond James.

Apple Inc. (NASDAQ: AAPL) was reiterated as Outperform with the same $265 price target at Wedbush, but that target was raised recently. The firm’s note sees Apple reaching the 100 million subscriber number over three to four years and it could translate into a $7 billion to $10 billion annual revenue stream over time that also further cements its install base and halo effect that could add in another $15 per share to the sum-of-the-parts valuation.

Biomarin Pharmaceutical Inc. (NASDAQ: BMRN) was maintained as Buy but the target price was lowered to $95 from $120 at Citigroup.

Burlington Stores Inc. (NYSE: BURL) was named as the Zacks Bull of the Day as its shares have crushed the discount retail industry in recent years and it is looking for a solid holiday season.

Caterpillar Inc. (NYSE: CAT) was the Bear of the Day at Zacks, as its shares have been rather volatile over the past year amid the U.S.-China trade war and growing economic concerns.

Corning Inc. (NYSE: GLW) was reiterated as Buy and the price target was raised to $34 from $32 (versus a $30.26 close) at Citigroup. Deutsche Bank downgraded it to Hold from Buy and lowered its target to $30 from $33.

Crane Co. (NYSE: CR) traded down 8% at $77.50 on earnings, compared with a $102.29 prior consensus target price. Canaccord Genuity downgraded it to Hold from Buy and cut the target price to $85 from $105.

Electronic Arts Inc. (NASDAQ: EA) was down 2.4% at $94.41 ahead of earnings and indicated down another 0.7% at $93.75 on Wednesday morning after its revenues beat guidance and were modestly above expectations. Wedbush reiterated its Outperform rating with a $118 target price, while UBS maintained its Buy rating but trimmed its target price to $117 from $120.

Enterprise Products Partners (NYSE: EPD) was maintained as Buy but the price target was lowered to $31 from $33 (versus a $26.83 close) at Citigroup.

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FireEye Inc. (NASDAQ: FEYE) was down 4.7% at $15.48 on Tuesday ahead of earnings. Wedbush reiterated it as Neutral with a $15 target price, noting that its results that were nothing to write home about and with mixed fourth-quarter guidance.

Grubhub Inc. (NYSE: GRUB) took multiple downgrades on Tuesday as shares fell a whopping 43.3% to $33.11 on Tuesday. Wedbush decided to downgrade it to Neutral and cut the target to $30 from $90 as competition is placing a real question mark on long-term value here. JMP Securities downgraded it to Market Perform from Outperform, and Stifel downgraded it to Hold from Buy. Goldman Sachs cut its rating to Neutral from Buy and slashed its target price to $30 from $86 in the wake of the news.

GW Pharmaceuticals PLC (NASDAQ: GWPH) was down 2.7% at $134.06 on Tuesday, but H.C. Wainwright started it with a Buy rating and a $170 target price. The consensus target price is $224.57.

HCA Healthcare Inc. (HCA) was reiterated as Buy and the price target was raised to $156 from $152 (versus a $134.99 close) at Citigroup.

Leggett & Platt (NYSE: LEG) rose by 11.7% to $51.57 on Tuesday, above the prior consensus target price of $47.75. SunTrust Robinson Humphrey downgraded it to Hold from Buy.

Microchip Technology Inc. (NASDAQ: MCHP) was raised to Strong Buy from Outperform with a $115 target price (versus an $84.81 close) at Raymond James.

Molina Healthcare Inc. (NYSE: MOH) was downgraded to Hold from Buy and the target price was lowered to $120 from $133 (versus a $124.68 close) at Jefferies. The stock was indicated down over 5% at $118.00 on Wednesday.

National Oilwell Varco Inc. (NYSE: NOV) was raised to Buy from Neutral and the target price was raised to $33 from $29 (versus a $23.83 close, after a 13.7% gain) at Goldman Sachs.

Nordstrom Inc. (NYSE: JWN) was down 2.4% at $37.11 on Tuesday and was indicated down another 2.9% at $36.00 on Wednesday morning, and its consensus target price is $34.25. UBS downgraded it to Sell from Neutral.

NXP Semiconductors N.V. (NASDAQ: NXPI) was reiterated as Overweight and the target price was raised to $135 from $130 (versus a $114.41 close) at KeyBanc Capital Markets.

Reliance Steel & Aluminum Co. (NYSE: RS) was downgraded to Hold from Buy at Deutsche Bank, but the firm did raise its target price to $110 from $105. The shares closed up 1.3% at $119.73 ahead of the call, with a $113.89 prior consensus target price.

Revance Therapeutics Inc. (NASDAQ: RVNC) was raised to Outperform from Market Perform and the target price was raised to $20 from $12.50 (versus a $15.42 close) at Wells Fargo.

Shopify Inc. (NYSE: SHOP) closed down 3.8% at $312.52 after an earnings disappointment on Tuesday morning. Wedbush reiterated its Neutral rating with a $325 price target.

Steven Madden Ltd. (NASDAQ: SHOO) was reiterated as Neutral with a $37 target price (versus a $41.01 close) at Wedbush, with the firm noting that raised guidance was conservative but is likely reflected in the current valuation.

Ventas Inc. (NYSE: VTR) was downgraded to Hold from Buy at Stifel.

Werner Enterprises Inc. (NASDAQ: WERN) was downgraded to Hold from Buy at Stifel.

Xerox Holdings Corp. (NYSE: XRX) closed up over 11% at $34.42 after earnings, and it previously had a $37.25 consensus target price. JPMorgan downgraded it to Underweight from Neutral with a $31 target price.

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Even though almost all the top 20 biggest banks beat third-quarter Wall Street estimates, the sector is still way underowned across Wall Street. Merrill Lynch has four rated Buy that are top picks now.

Tuesday’s top analyst upgrades and downgrades included Alphabet, American Express, Apple, AT&T, Boeing, JPMorgan, Nokia, Slack, Under Armour and many more.

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The bull market may now be more than 10 years old, but as 2019 progresses, the reporting about recessions and trade wars gets amplified every time the market drops. Many investors may have forgotten that the Dow Jones industrials and S&P 500 are still up by double-digits this year. They also may have forgotten that unemployment is hovering close to 3.7% and that gross domestic product is still growing.

While the markets have been called out over time as crawling up a wall of worry, there are many reasons that investors might be worried now. Technology stocks are a place where many investors can still find bargain-basement valuations at less than 10 times earnings. Many technology stocks are now even solid dividend payers, and that matters when the yield on the 10-year Treasury is below 1.5%, and it is under 2.0% on the 30-year Treasury yield.

It may seem to be a hard time to look for value in technology because every company theoretically has some exposure to China and to a slowing global economy. That said, it’s a strategy that many contrarian investors would be doing.

24/7 Wall St. has highlighted four companies that are not related in their core businesses, valued at 10 times earnings and likely to keep paying strong dividends ahead. We have used forward earnings estimates and consensus analyst target prices from Refinitiv, and additional color has been added on each.

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HP Inc. (NYSE: HPQ) is the consumer-facing portion of what’s left of the Hewlett-Packard breakup. It makes personal computers and printers, and some investors just don’t care about that any longer. HP’s shares were at $21.00 at the end of July, but a drop in the markets on the trade war and tech in China and an earnings disappointment has taken this stock back under $18. HP’s revenues are expected to be more or less flat in 2019 and 2020, but still above $58 billion, and its earnings per share of $2.02 in 2018 is expected to rise to $2.21 in 2019 and $2.24 in 2020. HP is now valued at just eight times expected earnings, and its dividend yield is 3.6%.

Shares closed at $17.79 most recently, in a 52-week trading range of $17.10 to $27.08 and with a consensus target price of $20.66. Its market cap is still almost $27 billion.

International Business Machines Corp. (NYSE: IBM) is considered a company full of old nerds wearing short-sleeve button-downs with pocket protectors by many people in IT these days. It’s a stereotype that may no longer be fair as the company’s strategic imperatives around cloud, artificial intelligence and other areas may have just been given a shot in the arm from its $34 billion acquisition of Red Hat that has now closed.

The big question to be asked is if the Red Hat team can leverage through the IBM teams and customers to win more business, and what would be $4 billion in added revenues may ramp to $10 billion in the next decade. IBM is a company in which most investors, including Warren Buffett himself, have thrown in the towel. What if this time is different? At $132.50 a share, IBM is valued at almost exactly 10 times its blended 2019 and 2020 earnings estimates.

IBM has a 52-week range of $105.94 to $154.36 and a dividend yield that is nearly 5% due to its low share price. It’s hard to imagine that IBM was more than a $200 stock back in 2013, and the consensus target price today is not even $153.00. IBM’s market cap is still $117 billion, despite it being down so much and unloved by the investing community.

KEMET Corp. (NYSE: KEM) is a leader in capacitors and other electrical components inside the guts of anything and everything in technology. The company has now operated for 100 years. This stock has remained under the radar of many investors for years, with a market cap that is right at $1 billion and valued at just six times forward earnings. Where it is weak is in the 1.2% dividend yield, with a payout ratio of only about 10%.

On August 1, KEMET exceeded expectations on its preliminary earnings report and projected solid margins despite inventory adjustments and a slower cycle in Europe and in its auto-sector sales. Kemet ended the latest quarter with cash and investments of approximately $217.3 million and net debt of $94.8 million. With a low-cost financing of its debt, the company said that will execute on its long-term growth strategy for the company and provide the ability to return capital to its shareholders. Are a larger dividend and a buyback going to come this way?

KEMET closed at $16.92 a share, in a 52-week range of $15.55 to $26.60. The consensus target price is up at $27.00.

Xerox Holdings Corp. (NYSE: XRX) is a technology stock that may have been a better story for your grandparents than for investors in the new technology realm. What stands out here after a reorganization and split is that Xerox was up 80% year to date at the start of July. Then the company managed to beat earnings, but it lowered its annual revenue guidance and had said that its board would declare the normal dividend in a post-restructuring in August.

Xerox shares slid from $36.00 at the start of July down to its most recent close at $27.82. The revenue expectations are still contracting, but with a blended earnings of $4.00 per share expected ahead, Xerox is valued at just seven times earnings estimates.

Xerox’s prior dividend of $1.00 per year was generating better than a 3% yield. Its consensus target price is $37.25, and its 52-week trading range is $18.58 to $36.58.
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The post 4 Down and Out Tech Stocks Under 10 Times Earnings With Solid Dividends appeared first on 24/7 Wall St..

It’s been hard filtering out the news from the noise in 2019. After the S&P 500 and Nasdaq Composite recently hit all-time highs and rallying about 20% on average since the end of 2018, suddenly more fears have crept into the financial markets and the economy now that the United States and China have traded retaliatory tariffs. And the global growth already was questionable before this trade war broke out. Now investors have to think long and hard about how they want their assets positioned ahead after a 10-year mega-bull market.

One area that investors frequently look to for safety is the so-called value stocks. These companies generally are valued at substantial discounts to the market as a whole, or maybe they are just valued cheaper than their sector peers. Some are cheap based on their share price multiple against earnings, cash flow, EBITDA or even their book value.

One thing that is hard to argue is that a true value stock might not offer real “value” if the underlying company does not or cannot pay a dividend. It’s also hard to use the term “value” if a company’s earnings or core business may be at risk of drying up in a very short time.

24/7 Wall St. has screened the entire S&P 500 for dividend-paying stocks that are trading at less than 10 times expected earnings per share. That implies that the shares are valued at more than a 40% discount to the 17.5 times estimated S&P 500 EPS figure as a whole, as well as about two-thirds the value of a historic 15 times expected earnings during normal times.

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Before thinking that value stocks are always “cheap stocks,” note that investors may not want to pay a market multiple for a struggling company for many reasons. Maybe there are operational issues, industry pressures, regulatory pressures, slow or negative growth, or other issues that keep the market from valuing these companies on par with the market itself.

24/7 Wall St. screened the entire S&P 500 for stocks valued less than 10 times expected current year earnings per share (EPS) using data from Refinitiv for estimates. Those were screened as normalized EPS used by Wall Street analysts rather than GAAP numbers, but we also have added some color to explain why each company is at a discount to the market or its peers. Companies with negative earnings or with major earnings contractions that would threaten their dividends ahead were screened out. Industries were screened peer-by-peer for which one represented the best value to focus on only one or two companies and to prevent excessive sector concentration.

It is important always to remember that there is no free lunch in the stock market. There is an entire history of value stocks turning into value traps. Some never manage to recover at all, while other companies do return to greatness.

Here are 13 dirt cheap value stocks that are valued at less than 10 times earnings and that also pay steady dividends deemed safe as of mid-2019.

American Airlines
> About 6.5 times expected earnings

American Airlines Group Inc. (NASDAQ: AAL) has been considered a value stock among the airline industry for some time, but the airlines have become more mainstream for investors and are believed to have fewer earnings shocks and major losses compared to pre-recession periods. Oil prices now more stable and not running back to those prior $100 per barrel levels keep jet fuel costs reasonable. Airlines also get to gouge on fees, and those affected by the 737 MAX plane groundings (American is one of them) have held up relatively well.

With shares near $32.50, the 6.5 times projected earnings figure is based on a consensus estimate of $5.01 per share for 2019. That would be up from $4.55 EPS a year earlier, and the 2020 consensus sees $5.69 EPS. The dividend yield is only about 1.25%.

AT&T
> 8.8 times current and expected earnings

AT&T Inc. (NYSE: T) would be the top yield in the Dogs of the Dow, but it’s no longer even ranked as a Dow Jones industrial average member. After paying billions to acquire DirecTV and then paying billions more to acquire Time Warner, some investors have a much harder time analyzing the value proposition when considering the mix of all the moving parts within AT&T now. That has led to a long slow bleed in the shares, and at $31.20 a share, the $227 billion market cap has to fight for attention, considering that AT&T’s long-term debt is almost $185 billion and the total liabilities are $353 billion. The stock also has lost about one-fourth of its value over the past three years while the overall market has risen.

With $3.52 EPS in 2018, analysts are calling for $3.58 in 2019 and $3.64 in 2020. That is very low growth, even with 7% revenue growth expectations in 2019. AT&T pays out about 60% of its EPS, and that is considered sustainable by most investor views. Its dividend yield is more than twice the Treasury’s long-bond at 6.5%.

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Capital One
> About eight times expected earnings

Capital One Financial Corp. (NYSE: COF) is much better known as a credit card issuer than as a formal bank, but it does have bank and cafe locations in certain regions around the United States. Despite it having grown revenues for years, many investors believe that Capital One will be among the harder-hit banks in the next economic downturn due to such a large exposure to consumer credit cards and the expected rise in delinquencies and charge-offs that would follow such a downturn. Still, it is expected to grow revenues by the low- or mid-single digits, and a recent Jefferies upgrade called for close to a 30% payout increase. That means its $89.50 current share price and current yield of almost 1.8% might jump to over 2.3%, if the firm’s analysis proves to be correct.

Capital One’s $11.19 EPS in 2018 is expected to dip to $11.05 in 2019, but it is then expected to rise to $12.09 in 2020. That’s a lot more money in its pocket.

CVS Health
> About 7.5 times expected earnings

CVS Health Corp. (NYSE: CVS) has fallen far out of favor with the investing community. On top of drug pricing fears and deeper regulations expected ahead in health care, the former CVS Caremark further complicated how to evaluate the shares when it acquired health insurer Aetna in a $69 billion merger. To muddle matters further, Wall Street analysts are atrocious when it comes to factoring in an entire new company structure’s earnings and revenues into models including the acquirer. CVS shares are now down over 50% from their peak in 2015, and the dividend yield is about 3.8%, based on the $53.00 share price. With a market cap of almost $69 billion, CVS is expected to generate annualized revenues of $258 billion by the end of 2020.

With the 2018 EPS of $7.08 expected to fall to $6.84 in 2019, the 2020 consensus estimate of $7.22 EPS would value CVS at less than 7.4 times next year’s earnings estimates. Its dividend is deemed safe, as well with a payout rate of less than 30% of normalized earnings.

General Motors
> About 5.5 times expected earnings

General Motors Co. (NYSE: GM) is currently deemed to be cheaper than rival Ford due to opposite share performance of late. GM has much more exposure to China as its largest car market, and Chinese consumers could become anti-American if the trade war persists. On top of China woes, GM and its rivals have all faced peak-auto sales trends, and many historic car buyers opt for ride-sharing, public transportation or app-order services like Lyft and Uber. Its CEO is one of the most highly paid in America.

At about $37.25 a share, GM’s 2018 earnings of $6.54 per share are followed by consensus estimates of $6.73 in 2019 and $6.24 in 2020, with sales expected to contract less than 1% each year. GM also pays its shareholders a dividend north of 4% and has an earnings payout rate of less than 25% as a buffer to keep a strong dividend.

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Gilead Sciences
> 9.5 times expected earnings

Gilead Sciences Inc. (NASDAQ: GILD) is a top biotech that seems to have lost its way after effectively helping to cure hepatitis B. Its stock also has been looking for a bottom, while many former investors and traditional investors don’t want to think of the term “biotech” and “value” in the same sentence. Gilead is effectively not growing after three straight years of revenue contraction. If Wall Street analysts are correct, Gilead’s revenue decline is basing out, and there might even be some low-single-digit revenue growth in 2020 as EPS have been basing out as well. The company also has bought back stock, and it spent more than $11 billion to acquire Kite Pharma, as the company hopes to diversify its revenues from HIV and hep-C. Gilead has partnered with small companies to see if it can land a ride into the next mega-blockbuster drug.

Shares are at $65.50, and Gilead trades at roughly 9.5 times expected 2019 and 2020 earnings per share. The $2.52 annualized dividend generates better than a 3.8% yield while investors wait for Gilead to find some growth again. Its shares are down about 45% from the peak in 2015, and even then it still has an $83 billion market cap.

Goldman Sachs
> About 8.5 times expected earnings

Goldman Sachs Group Inc. (NYSE: GS) historically has traded at a premium to its peers, and now the bank holding company is taking on more efforts that might end up making it a virtual bank for consumers that it has ignored until recently. After taking a beating of late, earnings are expected to trough this year and recover in the next. After international scandals followed negative news on the domestic front, Goldman Sachs’s reputation took a hit and its shares now even traded under the stated book value (at 0.94 times book). This doesn’t sound at all like the “Golden Slacks” of the past, but Goldman Sachs does offer a 1.7% dividend yield now.

With a 4% expected sales drop in 2019, that is anticipated to grow by the same amount it dropped next year. And the $25.27 EPS from 2018 is expected to drop to $23.30 in 2019 but recover to $25.89 in 2020. There are of course some issues keeping the stock down for future liabilities, but the shares are down over 25% from the highs at the start of 2018.

IBM
> 9.6 times expected earnings

International Business Machines Corp. (NYSE: IBM) is somehow still one of the Dow Jones industrials, and it has to be the most hated technology stock with a $100 billion or more market cap. CEO Ginni Rometty has managed to keep running this company since taking over in early 2012, despite the stock losing more than one-third of its value since 2013 while the market has skyrocketed. She is one of the best-paid CEOs in American as well. Now IBM is acquiring Red Hat to lead in the hypercloud and virtualization, among other key initiatives. The market continually discounts IBM’s critical initiatives due to its old-school legacy IT-services operations. Paying out less than half of its normalized EPS still generates a 4.65% dividend yield for what some more brave value investors are calling a long-term turnaround (even if it hasn’t been able to turn around in the past six years or so).

After normalized earnings of $13.81 per share in 2018, IBM’s consensus estimates are $13.91 EPS in 2019 and $14.16 in 2020. An anticipated 3.2% revenue drop in 2019 is expected to see a gain of less than 1% in 2020, prior to factoring in the Red Hat $4.5 billion expected contribution.

Lincoln National
> Less than seven times expected earnings

Lincoln National Corp. (NYSE: LNC) is usually considered a life insurance company, but its four main segments are annuities, retirement plan services, life insurance and group protection. The company is valued at a discount to two key book-value-per-share metrics and it has continued to buy back its own stock while still offering close to a 2.3% dividend yield.

At about $64.50 per share, Lincoln National had earnings of $8.48 per share in 2018 is expected to have $9.32 EPS in 2019 and $10.38 in 2020.

Macy’s
> Seven times expected earnings

Macy’s Inc. (NYSE: M) is the king of value stocks in the domestic retail game. The problem is that no one wants to pay for its earnings stream when Amazon and a plethora of other online retailers have chiseled away the company. Even rival Kohl’s scored a partnership with Amazon that just as easily could have been a Macy’s deal. The company also has continued to close down sub-optimized stores in malls around America. While Macy’s has seen its earnings slide, the reality is that revenues have tailed off only marginally from three years ago. Macy’s is offering investors right at a 7% dividend yield while it struggles to revamp its stores and learn to get buyers away from their computers and smartphones.

Even after a fresh earnings beat, Macy’s saw its shares trade down slightly to about $21.50. That’s almost 50% lower than its 52-week high, and its stock was last seen down almost 70% from its peak in 2015. The $3.09 EPS consensus for 2019 is expected to be $2.90 in 2020, but sales are not expected to fall.

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Navient
> About 6.5 times expected earnings

Navient Corp. (NASDAQ: NAVI) may not be popular among many households due to its association with student loans, but many value investors would say that those students taking loans did so by their own choice. While sales are expected to be down 10% in 2019 and down in mid-single-digits in 2020, Navient’s EPS numbers are expected to grow. At close to $13.50 a share, Navient’s value may seem less now that it has risen from under $9 during the peak-selling pressure last December. Still, analysts generally now expect the stock to keep rising from its $3.2 billion market cap.

Navient had $2.09 EPS in 2018, and consensus analyst estimates were last seen at $2.11 EPS for 2019 and $2.18 for 2020. It offers new investors a dividend yield of almost 4.75%.

Owens-Illinois
> Less than six times expected earnings

Owens-Illinois Inc. (NYSE: OI) manufactures and sells glass containers to food and beverage manufacturers around the world. It’s considered an unexciting business with very small, low-single-digit sales growth expectations. The company’s post-earnings reaction after missing estimates has been atrocious, with a 15% drop so far in May. A fresh Wells Fargo view called for as much as 40% upside based on its value and business position.

After earnings of $2.72 per share in 2018, Owens-Illinois has earnings estimates of $2.90 per share for 2019 and $3.19 in 2020. Despite being valued at less than six times earnings, it has only a 1.2% dividend yield.

Xerox
> About eight times expected earnings

Xerox Corp. (NYSE: XRX) is a technology stock often forgotten about. Many younger workers might not even know about or care about the company, even if it has been around forever. After a recent breakup of the company led by activist Carl Icahn, Xerox shares looked like they were on par to almost double from the lows at one point earlier in 2019. So what if people Icahn’s age were the last ones to use Xerox machines and the like? Paper hasn’t exactly disappeared from the office environment. This company is difficult for some investors to think of long term, but the current share price still generates a 3.1% dividend yield, even after considering how much it has run up.

With a share price of about $32, Xerox’s normalized $3.46 EPS is projected to rise to $3.89 in 2019 and $4.13 in 2020. That’s about 8.2 times expected current year earnings and 7.75 times next year’s earnings, with a 6% expected revenue drop in 2019 and a 4% revenue drop in 2020.

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The carnage of late 2018 was replaced almost immediately with the return of the big bull market through the entire first quarter of 2019. And with the start of the second quarter running smoothly ahead of earnings season, now the indexes are all having a solid performance in 2019.

As of Friday, the major index exchange traded funds were showing solid year-to-date gains: Nasdaq-100 up 19%, S&P 500 up about 15% and the Dow Jones industrials up 13%.

There is a stock market expression that a rising tide lifts all ships, and some of the S&P 500’s top gainers so far in 2019 have been companies that might seem rather surprising because they aren’t ones that the investing community normally would be stepping all over itself to own the shares.

24/7 Wall St. used a screen from Finviz and Refinitiv data for figures about year-to-date (YTD) performance metrics. We added trading information and additional color for the logic behind each gain, and some deserved more coverage than others, without covering every single gainer. A specific issue was targeting the leader of each of the major sectors that was still greatly outperforming the broader index gains, so some of the ones right behind the performance in each sector may have been counted behind each named leader.

Here are the ten biggest, and perhaps unusual, top year-to-date performers of the S&P 500 as of Friday, April 5, 2019.

The Best Performer Is Xerox, Up 67%

Many people might wonder if Xerox Corp. (NYSE: XRX) still had a place in the future. Xerox has been the top stock performer in the S&P 500m with a whopping 67% year-to-date gain. Trading at $33.30 late on Friday, it has a 52-week range is $18.58 to $33.67 and a consensus target price is $35.50.

The company recently adopted a holding company strategy. Xerox unveiled a new services offering to advance digital transformations, and the company is exploring strategic alternatives to sell is customer financing business. While the gains have been massive in 2019, Xerox lost over one-third of its value in November and December’s selling carnage, and the stock is really up a more reasonable 15% from that pre-flop peak of $29 or so in November.

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Chipotle Is Up 63%

Chipotle Mexican Grill Inc. (NYSE: CMG) is no longer in the business of giving its customers Montezuma’s revenge. The company has taken a more disciplined store opening approach and has emerged with its own loyalty program and appears to be coming on strong with digital orders. Chipotle was the second-best S&P 500 stock YTD, with a gain of close to 63%.

Analysts have been playing catch up with big upgrades and price target hikes, and this stock surged above and beyond most analyst expectations. With shares close to $705, the recent consensus price target of $571.78 shows just how far behind they have been.

The street-high price target is $760 here, and it just seems as if it’s safe to wonder if and when some analyst or investor will come out with a $1,000 share price target, given the nature of the history of investors (analysts and hedge funds too) chasing performance and momentum.

Delphi Technologies Is Up 60%

Delphi Technologies PLC (NYSE: DLPH) seems surprising to see in the top performer list at all, let alone as the third best S&P 500 member with a 60% gain YTD, considering the continued overhang with peak auto having already been seen. Delphi makes and sells integrated powertrain technologies for the auto industry through its Powertrain Systems and Delphi Technologies Aftermarket segments.

Its chart has done well and is breaking out, if you just looked the 2019 performance. But with shares close to $23.45, it has a 52-week range of $13.18 to $53.78, which should paint a better picture of “great today maybe not so great over time.” Delphi’s consensus target price is $24.56.

AMD Is Up 57%

Advanced Micro Devices Inc. (NASDAQ: AMD) may not be a surprise to the AMD fans, but some of the demand reports and chip reports for 2019 have been less robust than many of the chip stocks might be indicating. Still, AMD did win recent GPU partnerships for new age gaming trends. AMD shares were soft on Friday, with shares down around $28.90, but the stock screened out as being up 57% YTD. It was the fourth best performing S&P 500 stock so far this year.

AMD’s 52-week range is $9.50 to $34.14, and analysts have very mixed views, with the consensus analyst target being closer to $25. The street-high target is up at $42. Xilinx Inc. (NASDAQ: XLNX) was next in line as the fifth best S&P 500 stock with 50% YTD gain, and IPG Photonics Corp. (NASDAQ: IPGP) was the eighth best with a 48% gain.

Hess Is Up 50%

Hess Corp. (NYSE: HES) was the best energy performer so far in 2019, and it was the sixth best-performing S&P 500 stock with a 50% gain YTD. The bulk of that move took place in January. What’s interesting here is that earnings and revenue trends for the exploration and production company, offshore and midstream, are not currently expected to make a great rebound until 2020.

With shares at $62.25 late on Friday, it has a 52-week range of $35.59 to $74.81, and its consensus target price is $66.25. This was a $72 stock in October.

Arista Is Up 48%

Arista Networks Inc. (NYSE: ANET) is a cloud networking solutions provider, and it was the seventh best S&P 500 performer in 2019, with a 48% gain YTD. Goldman Sachs reiterated its Buy rating in March and raised its target to $360 from $300, and that is not even the street-high target.

Trading at $313.50 on Friday, it has a 52-week range of $187.08 to $325.00. The consensus target price is $303.72. Arista shares also hit all-time highs in recent days. Many investors would be hard pressed even to know who Arista Networks is.

Celgene Is Up 47%

Celgene Corp. (NASDAQ: CELG) is the number one health care stock of 2019, with a gain of 47% YTD. That said, it’s because Bristol-Myers Squibb decided to reach deep down in its pockets and pull out enough cash to acquire one of the top biotechs in the nation. Enough said.

Hanesbrands Is Up 46%

Hanesbrands Inc. (NYSE: HBI) may be best known for its tighty-whities and undershirts, but it also has Champion for athletic apparel, and it makes apparel for many brand names. While it still has not recovered to last summer’s highs, Hanesbrands was last seen up about 46% YTD and was the 10th best performing S&P 500 stock thus far.

With shares around $18.60 on Friday, the consensus target price is $19.17, and the 52-week range is $11.57 to $22.57. This was nearly a $35 stock back in 2015.

Honorable Mention: Synchrony Financial, Up Over 38%

Synchrony Financial (NYSE: SYF) was only listed as the 24th best gainer of the S&P 500 YTD, but it was the highest ranking company we would consider to be a pure-play financial stock. It was up over 38.5% YTD, with its best gap in January, but for a better reference that was still down 4% from a year ago.

Synchrony’s $32.40 share price late on Friday compares with a 52-week range of $21.77 to $36.32 and a consensus target price of $37.11. Navient Corp. (NASDAQ: NAVI) was actually a slight bit better leader, with a 38.6% gain YTD, but it is considered to be more of a student loan company after being part of the Sallie Mae split.

Honorable Mention: General Electric, Up 38%

General Electric Co. (NYSE: GE) also deserves an honorable mention here. While its gain of almost 38% YTD was ranked as the 26th best among the S&P 500 stocks, this is still down 12% from a year ago. GE still would have to rally more than 200% to reach anywhere close to its post-recession highs. Sometimes the biggest losers of one period end up being the biggest gainers from snapback moves in later periods.

Shares of GE saw a two-cent decline on Friday for a $10.01 closing price. GE’s 52-week range is $6.40 to $14.99, and its consensus target price was listed up at $12.54 on last look.

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Investors may scratch their heads over why some of these companies have such strong gains, considering that some of the businesses are running quite well while others may have structural or industry issues working against them. Whether readers here are investors or traders, no one should chase performance merely because a stock (or a group or the market) has been rising rather than falling. A review from StockCharts.com also has been provided here on each.

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December 17, 2018: The S&P 500 closed down 2.1% at 2,546.05. The DJIA closed down 2.1% at 23,596.88. Separately, the Nasdaq closed down 2.3% at 6,753.73.

Monday was a down day for the broad U.S. markets. Each of the major exchanges slid lower in the session almost cementing fears that we are in a bear market. Crude oil posted a big loss on the day dipping below $50. The S&P 500 sectors were entirely negative. The most “positive” sector was finance down 1.0%. The worst performing sectors were utilities and real estate down 3.2%, and 3.7%, respectively.

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Crude oil was last seen down 4.0% at $49.13.

Gold was last seen trading up 0.7% at $1,249.80.

The S&P 500 stock posting the largest daily percentage loss ahead of the close was Xerox Corp. (NYSE: XRX) which traded down about 13% at $21.27. The stock’s 52-week range is $21.08 to $37.42. Volume was roughly 12 million compared to the daily average volume of 3.3 million.

The S&P 500 stock posting the largest daily percentage gain in the S&P 500 ahead of the close was A. O. Smith Corp. (NYSE: AOS) which rose by more than 2% to $42.39. The stock’s 52-week range is $40.34 to $68.39. Volume was about 2.9 million compared to the daily average volume of 2.2 million.

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The post Monday’s Biggest Winners and Losers in the S&P 500 appeared first on 24/7 Wall St..

The nine-year-old bull market has evolved into a choppy market in 2018. Many investors feel that the current valuations are stretched, and some investors feel that the valuations may be unsustainable based on the news flow and valuations ahead. When investors start considering how to value a company and its stock, one of the most classic methods is the price-to-earnings (P/E) ratio. This is just one tool for investors, and it often fails to tell the whole story.

24/7 Wall St. has looked at numerous market sectors to outline where investors may find value in an expensive stock market. While Amazon and Netflix consistently may be valued at more than 100 times earnings, the overall S&P 500 Index and the Dow Jones industrial average are both valued at about 23 times trailing earnings. Those valuations for the coming 12 months and they come with a forward current year P/E of about 16.5 for the Dow and 17.6 for the S&P.

Investors often look for value after periods of big expansion, and it is no secret that growth stocks have by and large outperformed value stocks in recent years. The reason is simple: investors are enthralled growth, and the market’s continued rise just is not the right climate for slower earnings growth (or no growth). If the stock market begins to falter, many investors may prefer to focus on value stocks over the great growth names, now that Netflix, Facebook, Twitter and many other technology leaders have destroyed shareholder valuations in recent weeks.

We have focused our efforts in the technology sector, which also includes the slow-growth/no-growth telecom and IT-services components rather than just software and hardware companies within technology. There were eight companies valued close to or under 10 times expected current year earnings, and none of these companies are small-cap when it comes to their market valuations. A dividend comparison has been made on each, and the relative average dividend yields are almost 2.2% for the Dow and 1.8% for the S&P 500.

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Here are eight large-cap and mid-cap technology stocks trading at or under 10 times expected earnings.

AT&T Inc. (NYSE: T) is a well-known telecom and wireless behemoth, but it has been changing its stripes with the acquisition of DirecTV and the more recent purchase of Time Warner. AT&T is valued at about 11 times last year’s earnings, and it is valued at just nine times expected earnings for this year. Its stock performance has suffered, and its 6.3% dividend rarely gets the attention it may deserve for value investors. AT&T has a $233 billion market cap.

DXC Technology Co. (NYSE: DXC) may not be a household name as the company was formed on April 1, 2017. This is the combined entity from the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise. The company provides IT-services in the United States and abroad, a segment that investors view as old-school and low-value when there are other growth opportunities. That said, its $8 per share in earnings power is expected to be $9 within two years. The current value is barely 10 times expected current-year earnings. DXC’s dividend yield is close to 0.9%, and it has nearly a $25 billion market cap.

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International Business Machines Corp. (NYSE: IBM) may be a behemoth in technology, but the continued reliance on old IT-services and sending Big Blue employees around the country and in international markets has kept a lid on the addition to revenues seen from some of IBM’s strategic imperatives. IBM may screen out with a P/E ratio of 12, but it is valued at just over 10 times expected current year earnings. IBM’s dividend yield is 4.3%, and even with a $113 billion market cap, it has been a dead-money stock for more than five years now.

Lam Research Corp. (NASDAQ: LRCX) has pulled back during the trade war fears targeting technology, and it has become a battleground stock between the bulls and bears as capital spending ambitions and concerns come to a head. Lam Research is valued at just 10 times last year’s earnings and at just under 12 times the currently expected earnings, before earnings growth is expected to resume in 2020. Lam’s dividend is now close to 2.5%, and it has a $30 billion market cap.

Micron Technology Inc. (NASDAQ: MU) is the U.S. leader in DRAM and is now a flash memory leader as well. Micron is valued at just five times expected earnings. Its biggest problem is that investors have treated memory like a commodity, and they never really seem all that willing to pay up for the earnings power. Micron still pays no dividend, but it has a $60 billion market cap.

Seagate Technology PLC (NASDAQ: STX) is in a virtual duopoly with Western Digital when it comes to disk drives, but both companies have expanded greatly into consumer and enterprise offerings. Seagate may be valued at 10 times current earnings, but its forward P/E ratio is just under nine. Seagate now has a dividend yield above 4%, and its market cap is $15 billion.

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Western Digital Corp. (NASDAQ: WDC) is the other half of the virtual duopoly with Seagate for disk drives, but now there are flash drives and flash memory. Investors only have to pay six times forward earnings for this leader, and the worries about its key drive markets have kept its shares cheap during good times and bad times alike. Western Digital has a 2.5% dividend yield and a $20 billion market cap.

Xerox Corp. (NYSE: XRX) is a new company in theory, but its old valuations are harder to match up now that it has split into two companies. The Xerox of today is still focused on copiers and printers, and the business services unit became Conduent. Now Xerox is valued at less than eight times earnings expectations. Investors may wonder how much growth there is here, if any, but they have to pay only about 7.5 times expected earnings for this year and 7.3 times expected earnings for next year. Xerox has a dividend yield of close to 3.8% and a market cap of just under $7 billion.

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May 14, 2018: Here are four stocks trading with heavy volume among 50 equities making new 52-week lows in Monday’s session. On the NYSE decliners led advancers by about 1.13 to 1 and on the Nasdaq, decliners led advancers by about 1.18 to 1.

Xerox Corp. (NYSE: XRX) dropped more than 10% Monday to post a new 52-week low of $27.11. Shares closed at $30.17 on Friday and the stock’s 52-week high is $37.42. Volume of around 9.5 million shares was nearly four times the daily average. The company’s deal with Fujifilm has evaporated.

Tata Motors Ltd. (NYSE: TTM) fell by about 2% Monday to post a new 52-week low of $23.82 after closing at $24.30 on Friday. The 52-week high is $37.62. Volume of about 3.6 million was more more than double the daily average of about 1.5 million. The company had no specific news.

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Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE: SBS) traded down about 4.6% Monday to post a new 52-week low of $7.66 after closing Friday at $8.03. The stock’s 52-week high is $12.39. Volume was about 75% above the daily average of around 4.1 million shares. The company had no specific news Monday.

Extreme Networks Inc. (NASDAQ: EXTR) traded down about 2.6% Monday and posted a new 52-week low of $8.13 after closing Friday at $8.35. The stock’s 52-week high is $15.55. Volume totaled around 2.9 million, nearly 60% higher than the daily average of around 1.9 million. The company had no specific news.

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The futures traded higher again on Monday morning as the new trading week started on the back of one of the best weeks for the markets since March. The venerable Dow Jones industrial average index posted a seventh straight day of gains last Friday, and traders will be looking to extend the gains.

Some investors have reconsidered what the nine-year bull market may bring in 2018 and beyond. It has become clear that the multiyear trend of buying pullbacks is now more vulnerable to sellers, volatility and each major news headline. Many investors are finding it harder to decide how they want their assets positioned for the longer term.

24/7 Wall St. reviews dozens of analyst research reports each day of the week to find new investing and trading ideas for our readers. Some of the top analyst reports cover stocks to buy. Others cover stocks to sell or to avoid.

Additional color and commentary have been added on some of these daily analyst calls. The consensus analyst price target data are from the Thomson Reuters sell-side research service.

These were the top analyst upgrades, downgrades and other research calls from Monday, May 14, 2018.

Andeavor (NYSE: ANDV) was downgraded to Neutral from Overweight at JPMorgan. The 52-week trading range for the refining giant is $80.44 to $144.06. Marathon Petroleum is buying Andeavor in a massive $23.3 billion deal. The Wall Street consensus price target is $138.61, and the stock closed Friday at $140.16.

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CSX Corp. (NYSE: CSX) was raised to Buy from Neutral at Goldman Sachs. The 52-week trading range for the railroad is $47.99 to $63.88. The consensus price target is $65.57, and the stock closed Friday at $63.09.

FMC Corp. (NYSE: FMC) was raised to Buy from Neutral at Goldman Sachs. The 52-week trading range is $69.94 to $98.70, and the consensus price objective is $97.85. The shares closed Friday at $88.90 but traded up smartly in Monday’s premarket action on the upgrade.

L Brands Inc. (NYSE: L) was raised to Buy from Neutral at Citigroup. The 52-week trading range for the lingerie retailer is $30.70 to $63.10. The consensus price objective is $44.83, and the stock closed Friday at $32.33.

Lam Research Corp. (NASDAQ: LRCX) was raised to Buy from Neutral at Citigroup. The 52-week trading range for the semiconductor capital equipment leader is $139.24 to $234.88. The consensus price objective is $266.55. The shares closed Friday at $201.55.

Owens Corning Inc. (NYSE: OC) was downgraded to Market Perform from Outperform at Wells Fargo. The stock has traded in a 52-week range of $59.96 to $96.52. The consensus price target is $86.68, and the shares closed trading Friday at $66.92.

Masco Inc. (NYSE: MAS) was downgraded to Neutral from Buy at Merrill Lynch. The 52-week trading range is $35.79 to $46.45. The consensus price target is set at $45.83. The shares closed last Friday at $38.07.

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United Parcel Service Inc. (NYSE: UPS) was raised to Buy from Neutral at Merrill Lynch. The 52-week trading range for the venerable delivery company is $101.45 to $135.53. The consensus price target is set at $124.71, and the stock closed trading on Friday at $115.45.

Westinghouse Air Brake Technologies Corp. (NYSE: WAB) was raised to Buy from Hold at Deutsche Bank. The shares have traded in a 52-week range of $69.32 to $94.29, and the consensus price objective is $92. The stock closed Friday at $93.06, but it looks to be breaking through highs posted almost a year ago.

Xerox Inc. (NYSE: XRX) was downgraded to Neutral from Buy at JPMorgan. The 52-week trading range is $27.66 to $32.32. The posted consensus price target is at $39.80. The shares closed Friday at $30.17.

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Other key analysts upgrades and downgrades were seen in the following.

Dean Foods Co. (NYSE: DF) was downgraded to Sell from Hold at Deutsche Bank. The 52-week trading range is $8.14 to $18.90, and the consensus price target is $9.21. The stock closed Friday at $10.47.

Hilltop Holdings Inc. (NYSE: HTH) was downgraded to Neutral from Buy at Compass Point. The 52-week trading range is $21.47 to $28.32, and the consensus price objective is set at $27.70. The shares ended Friday trading at $22.71

Hostess Brands Inc. (NASDAQ: TWNK) was downgraded to Hold from Buy at Deutsche Bank. The 52-week trading range for the maker of Twinkies and other treats is $11 to $17.03. The consensus price target is $17.40, and the stock closed Friday at $13.27.

Legacy Reserves L.P. (NASDAQ: LGCY) was raised to Neutral from Sell at UBS. The stock has traded in a 52-week range of $1.07 to $8.49, and the consensus price target is $5.50. The shares closed Friday at $7.99.

Meritage Homes Corp. (NYSE: MTH) was raised to Buy from Neutral at Merrill Lynch. The 52-week trading range is $38.80 to $55.50, and the consensus price target is $55.45. The shares closed Friday at $44.15.

MongoDB Inc. (NASDAQ: MDB) was started with an Overweight rating at KeyBanc Capital Markets. The 52-week trading range is $24.62 to $46.26. The consensus price objective is set at $41.25. The shares ended last week at $43.21.

Surface Oncology Inc. (NASDAQ: SURF) was started with a Neutral rating and a $17 target price at Goldman Sachs. Cowen initiated it with a Buy rating, and Evercore ISI started the shares with a Buy rating and $26 target. The stock was an IPO that came to market in April, and the shares have traded between $12.08 and $15.19 since the deal priced. The stock closed Friday $14.05.

United Insurance Holdings Corp. (NYSE: UIHC) was downgraded to Outperform from Strong Buy at Raymond James. The shares have traded in a 52-week range of $13.60 to $20.84. The consensus price target is set at $21.83, and the stock closed Friday at $20.82, so this could be a valuation call.

In case you missed it, last Friday’s top analyst upgrades and downgrades included AMC Networks, Alkermes, Echostar, Kohl’s, U.S. Bancorp, L Brands, Sarepta Therapeutics and more.

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Two corporate raiders have managed to kill a business combination between Xerox Corp. (NYSE: XRX) and an arm of Japanese company Fujifilm. It leaves troubled Xerox with a difficult future, after years of efforts by a string of executives to turn around its business.

Investors Carl Icahn and Darwin Deason virtually control the company after the transaction died and will install new members of management and the board of directors. A failure in due diligence timing was blamed for the end of the deal.

Xerox said:

Xerox announced it notified Fujifilm that the previously announced transaction agreement to combine Xerox with Fuji Xerox is being terminated in accordance with its terms due to, among other things, the failure by Fujifilm to deliver the audited financials of Fuji Xerox by April 15, 2018 and the material deviations reflected in the audited financials of Fuji Xerox, when delivered, from the unaudited financial statements of Fuji Xerox and its subsidiaries provided to Xerox prior to the date of the Subscription Agreement and taking into account other circumstances limiting the ability of the Company, Fujifilm and Fuji Xerox to consummate a transaction.

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The actual problem was the Icahn and Deason did not think the offer was rich enough. They had waged a proxy battle to control the company. As part of the settlement:

Xerox appointed five new members to its Board of Directors: Jonathan Christodoro, Keith Cozza, Nicholas Graziano, Scott Letier and John Visentin.

Gregory Brown, Joseph Echevarria, Cheryl Krongard and Sara Martinez Tucker will continue to serve as members of the Xerox Board of Directors.

Robert J. Keegan, Charles Prince, Ann N. Reese, William Curt Hunter, and Stephen H. Rusckowski each resigned from the Board of Directors of Xerox.

Jeff Jacobson resigned from his role as Chief Executive Officer and as a member of the Board of Directors of Xerox.

Keith Cozza, head of Icahn Enterprises, will become the new board chair. John Visentin will be the new chief executive. Icahn and Deason ended the proxy battle.

Because Xerox is a manufacturer and marketer of mostly low-level office products that have been overwhelmed by technology, it has lost the place it once held in corporate America because of the onset of online digital storage. Its best-selling products continue to be desktop printers, scanners, ink, and workflow management tools. Most customers abandoned these office tools long ago.

Icahn and Deason may have gotten their wish in the short term. Now they have to figure out a way to increase Xerox’s customer base, many of whom have moved on to more advanced products and services.

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President Trump said he will help China telecom company ZTE, which is suffering because of trade friction between the United States and the People’s Republic. According to Reuters:

U.S. President Donald Trump pledged on Sunday to help ZTE Corp “get back into business, fast” after a U.S. ban crippled the Chinese technology company, offering a job-saving concession to Beijing ahead of high-stakes trade talks this week.

“Too many jobs in China lost. Commerce Department has been instructed to get it done!” Trump wrote on Twitter in the first of two tweets about U.S. trade relations with China. It said he and Chinese President Xi Jinping were working together on a solution for ZTE.

A Xerox Corp. (NYSE: XRX) plan to merge with a Japanese company has died. According to Reuters:

Xerox Corp has scrapped a planned $6.1 billion deal with Fujifilm Holdings Corp in a settlement with activist investors Carl Icahn and Darwin Deason that also hands control of the U.S. photocopier giant to new management.

The victory for the billionaire investors puts the Japanese company further on the back foot in any new negotiations with Xerox, although it is by no means out of contention as Xerox is now expected to go up for sale in an auction at a higher price.

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Tesla Inc. (NASDAQ: TSLA) is having problems with engineering executives. According to The Wall Street Journal:

Tesla Inc. will be without two important executives just as the electric-car maker struggles to boost production of its first mass-market vehicle and faces doubts about its ability to raise cash.

Matthew Schwall, who was the company’s main technical contact with U.S. safety investigators as the Silicon Valley auto maker races to develop driverless-car technology, left the company for rival self-driving car company Waymo LLC. His departure comes as the National Transportation Safety Board has been investigating multiple crashes involving Tesla vehicles.

Nintendo is re-releasing one of its old products. According to CNBC:

Nintendo is bringing back its retro NES Classic Edition console in June, the company announced Monday.

The NES was first released in the mid-1980s. At the end of 2016, Nintendo re-released the console which was pre-loaded with 30 retro games such as “Super Mario Bros” and “Donkey Kong.”

It was in very short supply and many found it difficult to get their hands on due to the popularity of the console. But the Japanese gaming giant announced via Twitter that the NES Classic will return to stores in the U.S. on June 29. It costs $59.99.

“Avengers: Infinity War” has topped $1 billion in ticket sales. According to Box Office Mojo:

Disney and Marvel’s Avengers: Infinity War had a wonderful Mother’s Day weekend. The superhero feature topped the domestic box office for the third weekend in a row, delivered the second largest opening in China ever*, became the eighth largest domestic release of all-time, fifth largest global release and became the first superhero film to ever top $1 billion internationally.

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After a fight with activist shareholders cooled, Xerox Corp. (NYSE: XRX) CEO Jeff Jacobson returned to the company just days before he was told to leave. The entire board, which was also on its way out, will stay as well. The reversal is based on the expiration of an agreement with shareholders Carl Icahn and Darwin Deason, The two objected to a takeover of Xerox by Japan’s Fujifilm Holdings.

Xerox apologized to shareholders for the disruptions.

The company disclosed in a press release:

Xerox today announced that the settlement agreement it had reached with Carl Icahn and Darwin Deason on May 1, 2018 has expired in accordance with its terms. As previously stated, the agreement would have become effective upon execution of stipulations discontinuing the Deason litigation with respect to the Xerox defendants. In the absence of such stipulations, the agreement expired at 8:00 p.m. ET on May 3, 2018.

As a result, the current Board of Directors and management team will remain in place.

Xerox and its Board of Directors recognize the uncertainty caused by the developments of the past several days among the company’s investors and other stakeholders.

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Although the agreement has expired, Icahn and Deason said the matter is not over. In a letter to shareholders they wrote:

The Xerox board recklessly refused to follow through with the leadership and governance changes we agreed to, demanding unprecedented additional approvals for their own personal self-interest. We will continue our fight to rescue and revitalize Xerox.

The letter was first published by Bloomberg.

The ongoing battle means Jacobson could lose his job again.

Icahn and Deason do not think the deal is rich enough for Xerox shareholders, including themselves. Fujifilm has set up a subsidiary to hold 50.1% of the new entity, which would own all of Xerox and certain Fujifilm assets. Xerox shareholders would get a special dividend of $9.80 if Fujifilm’s deal goes through.

The board should not unpack its bags.

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AT&T Inc. (NYSE: T) argued against selling assets to close its deal to buy Time Warner Inc. (NYSE: TWX) According to Reuters:

 AT&T told a federal judge late Thursday it should reject any request by the U.S. Justice Department to force it to divest its DirecTV unit or Turner networks as art of approving its proposed $85.4 billion acquisition of Time Warner Inc

The publication of the closing briefs from both sides brings to end the trial over a deal which took on broader political significance immediately after it was announced in October 2016.

The United States wants a large cut in its trade imbalance with China. According to The Wall Street Journal:

The U.S. handed China a lengthy list of demands on trade, ranging from immediately cutting a trade imbalance by $100 billion a year to halting all Chinese government support for advanced technologies, according to a document sent to Beijing before talks this week.

The U.S.-China trade relationship is “significantly imbalanced,” said the document, which was reviewed by The Wall Street Journal. It noted that U.S. investment and sales of services into China remain “severely constrained” and added that China’s industrial policies “pose significant economic and security concerns” to the U.S.

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Twitter Inc. (NYSE: TWTR) told people to change their passwords. According to The Wall Street Journal:

Twitter Inc on Thursday said it found a bug in how it stored user passwords that could have left them visible to people in its internal computer system.

Twitter urged its users to change their passwords, but said an investigation showed no indication of a breach.

The former head of Volkswagen was charged in the United States over the diesel cheating scandal. According to Bloomberg:

Volkswagen AG’s former Chief Executive Officer Martin Winterkorn was charged in the U.S. in a deepening probe into the German automaker’s cheating on diesel emissions testing.

Winterkorn, who stepped down from his role as CEO days after the scandal became public, is accused of conspiring to defraud the U.S. and violate the Clean Air Act. The March 14 indictment was unsealed by a Michigan federal court on Thursday.

Warren Buffett of Berkshire Hathaway Inc. (NYSE: BRK-B) has bought more shares in Apple Inc. (NASDAQ: AAPL) According to Bloomberg:

Berkshire Hathaway Inc. bought an additional 75 million shares of Apple Inc., bolstering its stake and backing the iPhone maker’s ability to generate profits, CNBC reported, citing Chairman Warren Buffett.

The stock purchase adds to the almost 170 million shares that Berkshire Hathaway already owns and would see it overtake State Street Corp. to become Apple’s third-largest investor, according to data compiled by Bloomberg. The Cupertino, California-based company was already Buffett’s biggest shareholding.

Xerox Corp. (NYSE: XRX) reversed course and said its CEO would stay after a battle that cost him his job. According to CNBC:

Xerox Corp said on Thursday its current board and management team, which included Chief Executive Jeff Jacobson, will stay, after a settlement agreement it had reached with dissenting shareholders to oust them expired.

Xerox had said on Tuesday its CEO and most of its board will step down to settle a lawsuit by activist shareholders Carl Icahn and Darwin Deason, handing over to new management which will reconsider a controversial deal with Japan’s Fujifilm Holdings.

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The head of Xerox Corp. (NYSE: XRX) left after a bungled merger. According to MarketWatch:

Xerox Corp.’s Chief Executive Jeff Jacobson is resigning in a settlement with two of the company’s biggest investors, Carl Icahn and Darwin Deason, a pact that shakes up the majority of the board and puts its transaction with Fujifilm Holdings Corp. at risk.

The new board is expected to consider alternatives to the deal with Fujifilm, a complex transaction that sells the majority of Xerox to the Japanese company by combining with a joint venture the two operate in Asia.

Apple Inc.’s (NASDAQ: AAPL) earnings blew through estimates, and its shares rose — mostly because of a share buyback. According to MarketWatch:

Revenue rose 16%, to $61.1 billion, and came in just ahead of of the FactSet consensus of $60.9 billion. The company announced $100 billion in additional share buybacks and a 16% increase in its quarterly dividend

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Weinstein Company is about to be sold. According to The Wall Street Journal:

Dallas-based private-equity firm Lantern Capital Partners topped the bidding for the film and television studio co-founded by Harvey Weinstein and is close to acquiring the business, according to people familiar with the matter.

Weinstein Co. named Lantern the lead bidder with a $310 million offer when the entertainment company filed for chapter 11 bankruptcy protection in March. No other potential buyers topped Lantern’s existing offer, one of these people said. The deadline for bids was the close of business Monday.

Snap Inc. (NYSE: SNAP) posted horrible results that hurt its share price. According to The Wall Street Journal:

 Snap Inc. on Tuesday said revenue rose 54% in the first quarter from a year ago, but that missed analyst estimates and fell nearly 20% short of the previous quarter as efforts to wrest a larger share of advertisers’ budgets were impeded by Facebook Inc. and Alphabet Inc.’s Google.

The Venice, Calif.-based company’s shares were down 16% in after-hours trading.

The International Monetary Fund is worried about the economy in the Middle East. According to CNBC:

Tightening liquidity, trade tensions and ongoing structural issues mean that Middle Eastern nations are facing a multitude of challenges, according to the International Monetary Fund’s (IMF) regional director.

“The matrix of risks has local or regional components as well as international components,” Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), told CNBC.

Amazon.com Inc. (NASDAQ: AMZN) plans to upgrade the benefits of Prime membership. According to CNBC:

Amazon is planning new Whole Foods benefits for its Prime members, sources told CNBC.

The new perks will bring the might of Amazon’s membership program to the grocery industry, folding Whole Foods into a network other grocers will struggle to compete with. It will give Amazon vendors, many of which are niche and small, special access to Amazon’s vast shopper base.

Roughly 75 percent of Whole Foods shoppers are Amazon Prime members, but less than 20 percent of Amazon Prime members are Whole Foods shoppers, a source told CNBC.

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Investors have been reminded that the stock market can sell off after a near 666-point drop in the Dow on Friday, and the gap down was less than 1% after the major futures selling pressure abated some on Monday morning.

This bull market is now almost nine years old, and there has not been a 5% market correction in nearly two years. The trend that has proven itself the right trend over and over for the past five years or so has been for investors to buy the pullbacks. Investors are also still looking at how they should position their portfolios for this year and beyond into rising interest rates, tax reform, accelerated earnings and stronger GDP growth.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. The goal is to find new ideas for investors and traders alike. Some of these analyst reports and research reports cover stocks to buy. Other reports cover stocks to sell or to avoid.

Additional color and commentary has been added on most of the daily analyst reports. The consensus analyst price targets mentioned and other valuation metrics are from the Thomson Reuters sell-side research service.

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These were the top analyst upgrades, downgrades and other research calls from Monday, February 5, 2018.

Accenture PLC (NYSE: ACN) was raised to Overweight from Equal Weight and the price target was raised to $180 from $159 (versus a $156.90 prior close) at Morgan Stanley.

Amgen Inc. (NASDAQ: AMGN) was downgraded to Neutral from Overweight at Atlantic Equities. Amgen closed up 0.8% at $187.01 on Friday.

Biogen Inc. (NASDAQ: BIIB) was reiterated as Buy and the price target was raised to $433 from $400 at Mizuho.

Boeing Co. (NYSE: BA) was reiterated as Buy at Jefferies and the price target was raised to $400 from $339. Berenberg reiterated its Buy rating on Boeing and raised its target to $415 from $395. Shares closed down 2.25% at $348.91 on Friday, and they were indicated down 1.2% at $344.75 on Monday morning.

Charter Communications Inc. (NASDAQ: CHTR) was raised to Outperform from Market Perform with a $460 price target (versus a $387.50 close) at Wells Fargo.

Chevron Corp. (NYSE: CVX) was down 5.57% at $118.58 on Friday after poor earnings and many price target cuts were on Monday. Wells Fargo maintained its Outperform rating and cut the target to $125 from $129, and Jefferies maintained its Buy rating but cut its target down to $149 from $152. Goldman Sachs maintained its Buy rating on Chevron but removed it from the Conviction Buy list. The stock was indicated down 1.15% at $117.25 on Monday.

CIT Group Inc. (NYSE: CIT) was raised to Market Perform from Underperform with a $49 price target (versus a $50.62 close) at BMO Capital Markets. CIT was maintained as Neutral at Credit Suisse, but the price target was raised to $54 from $50.

Dick’s Sporting Goods Inc. (NYSE: DKS) was downgraded to Underweight from Equal Weight and the price target was cut to $25 from $33 at Barclays.

Exxon Mobil Corp. (NYSE: XOM) was down 5.1% at $84.53 on Friday after poor earnings, and the stock was indicated down 1.3% at $83.26 on Monday. Credit Suisse maintained its Neutral rating but lowered its target to $80 from $84, noting that it was cutting earnings and production forecasts. Wells Fargo lowered its target to $87 from $88, and Jefferies lowered its target price down to $87 from $90.

FirstCash Inc. (NYSE: FCFS) was reiterated as Outperform with an $83 price target (versus a $73.95 close) at Wedbush Securities. The firm believes that Latin America is going to continue offer the potential of 15% to 20% revenue growth and slightly higher earnings and EBITDA.

Foot Locker Inc. (NYSE: FL) was reiterated as Outperform but was added to the Best Ideas List at Wedbush. The firm’s channel checks point to fourth-quarter numbers tracking at the high end of guidance and that downward pressures should abate in 2018.

GrubHub Inc. (NYSE: GRUB) was downgraded to Market Perform from Outperform at Raymond James. GrubHub closed down 3% at $70.65 on Friday and was indicated down 3.1% more at $68.50 on Monday.

Illumina Inc. (NASDAQ: ILMN) was raised to Buy from Neutral and the price target was raised to $275 from $260 at Citigroup. Shares closed down 4.4% at $220.18 on Friday and were barely negative on Monday’s early indications.

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Infosys Ltd. (NYSE: INFY) was downgraded to Negative from Neutral with a $13 price target (versus a $17.75 close) at Susquehanna.

Kellogg Co. (NYSE: K) was started with a Buy rating and assigned an $80 price target (versus a $65.45 close) at Pivotal Research.

Lowe’s Companies Inc. (NYSE: LOW) was raised to Buy from Hold with a $129 price target (versus a $101.50 close) at Jefferies.

MBIA Inc. (NYSE: MBI) was started as Market Perform with a $7 price target (versus a $7.24 close, after a 3.5% drop) at Keefe Bruyette & Woods. MBIA has a 52-week range of $6.04 to $10.89.

Michael Kors Holdings Ltd. (NYSE: KORS) was reiterated as Buy and the price target was raised to $81 at Canaccord Genuity.

Nokia Corp. (NYSE: NOK) was raised to Buy from Hold at Merrill Lynch, noting an attractive valuation and solid position heading into the coming 5G upgrade cycle. Merrill Lynch’s target rose to €5.25 from €4.50 (implying 19% upside from its €4.40 close). Nokia’s American depositary shares were flat on Friday at $5.40 and were indicated up 2.5% at $5.53 on Monday, in a 52-week range of $4.51 to $6.65.

Northrop Grumman Corp. (NYSE: NOC) was reiterated as Buy and the price target was raised to $375 from $335 at Argus.

Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) was raised to Overweight from Neutral at JPMorgan.

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PayPal Holdings Inc. (NASDAQ: PYPL) was raised to Outperform from Market Perform at Wells Fargo.

Prestige Brands Holdings Inc. (NYSE: PBH) was downgraded to Neutral from Buy at D.A. Davidson.

Redfin Corp. (NASDAQ: RDFN) was raised to Outperform from Sector Perform with a $28 price target (versus a $19.76 close) at RBC Capital Markets.

Sprint Corp. (NYSE: S) was raised to Sector Weight from Underweight at KeyBanc Capital Markets. Sprint shares closed up 5.1% on Friday despite the market sell-off, and it has a 52-week trading range of $4.91 to $9.44.

Symantec Corp. (NASDAQ: SYMC) took multiple downgrades last week, even after many targets had been cut ahead of earnings. FBN Securities has maintained its Outperform rating on Symantec, but the firm lowered its price target to $33 from $35.

Union Pacific Corp. (NYSE: UNP) was reiterated as Buy at Argus, with the independent research firm noting that the recent sell-off offers a buying opportunity. After closing down 2.3% at $129.36, its shares were down from a 52-week high of $143.05.

Unitil Corp. (NYSE: UTL) was reiterated as Buy with a $50 fair value estimate (versus a $43.44 close) at Janney.

Wells Fargo & Co. (NYSE: WFC) was down 2.2% at $64.07 on Friday’s sell-off, but the regulatory size limit rules and penalties had shares down about 6.5% at $59.90 on Monday. Citigroup downgraded Wells Fargo to Neutral from Buy. BMO maintained its Market Perform rating but lowered its target to $62 from $60. Morgan Stanley downgraded the stock to Underweight from Overweight. Credit Suisse maintained its Neutral rating and $65 target price.

Xerox Corp. (NYSE: XRX) was raised to Buy from Neutral with a $38 price target (versus a $31.63 close) at UBS.

Merrill Lynch’s technical team was the one noting a near-term bearish and way overbought trend last Thursday morning, and the firm has said that its view over the weekend was still tactically bearish, and it sees the next support levels on the S&P 500 at 2,715 (the 50-day moving average) and then down at 2,696 to 2,673.

Friday’s top analyst calls were in Alibaba, Alphabet, Amazon.com, Amgen, Apple, Mastercard, Nokia, Shopify, U.S. Steel and over a dozen more.

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Wednesday morning’s announcement that Japan’s Fujifilm Holdings would take a controlling stake of 50.1% in Xerox Corp. (NYSE: XRX) in a deal that exchanges Fujifilm’s $6.1 billion stake in a joint venture with Xerox — called Fuji Xerox — for newly issued Xerox shares valued at the same amount. Fuji owns a 75% stake in the Fuji Xerox joint venture.

The new company will retain the Fuji Xerox name and maintain its listing on the New York Stock Exchange, trading under the existing XRX ticker symbol. In essence, Fuji Xerox becomes a tracking stock for Fujifilm shares in the same way that Sprint is a tracking stock for Softbank. Current Xerox CEO Jeff Jacobson will remain as chief executive of Fuji Xerox.

Xerox shareholders will receive a one-time special dividend payment of about $9.80 per share and retain a 49.9% ownership stake in the new Fuji Xerox.

The deal is expected to deliver at least $1.7 billion in annual cost savings by 2022 and about $1.2 billion by 2020. Just ahead of this announcement, Fujifilm announced that it will fire about 10,000 of the 47,000 employees currently employed at Fuji Xerox, a move the company estimates will cut costs by about $450 million annually.

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A lingering question is how activist investor Carl Icahn and shareholder Darwin Deason, who together own about 15% of outstanding Xerox stock, will respond to the news. The pair had been pushing for Xerox to explore “strategic options,” fire the CEO and negotiate a better deal with Fujifilm.

Fujifilm CEO Shigetaka Komori said:

I am confident that Fujifilm’s ability to drive change as well as its experience of successful reinvention will give a competitive edge to the new Fuji Xerox, delivering significant value creation to shareholders of both the new Fuji Xerox and Fujifilm. We are delighted to welcome Xerox and its employees to the Fujifilm family and look forward to combining our strengths towards jointly shaping the future of our industry.

Komori will be chairman of the new company’s 12-member board of directors. The board will include seven members — including Komori — appointed by Fujifilm’s board and five independent directors appointed from Xerox’s board.

The transaction is expected to close in the second half of this year and is subject to customary closing conditions, regulatory approvals and approval by Xerox shareholders.

Xerox shares traded up about 9.5% early Wednesday morning, at $35.79 in a 52-week range of $26.64 to $37.42, a new high set shortly after the opening bell. The stock’s 12-month consensus price target had been $37.44 before the deal was announced.

Fujifilm shares traded down about 8.3% in Tokyo at ¥4,190 (about $38.46).

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Fujifilm will take over one of America’s most storied companies — Xerox Corp. (NYSE: XRX). According to Reuters:

Japan’s Fujifilm Holdings is set to take over Xerox Corp, and combine the U.S. company into their joint venture Fuji Xerox in an effort to cut costs, the companies said on Wednesday.

Fujifilm will own 50.1 percent of Xerox shares, and combine Xerox with Fuji Xerox, their joint venture in which the Japanese company already holds a 75 percent stake.

The federal government is examining Apple Inc.’s (NASDAQ: AAPL) reasons for making some of its older phones run more slowly than current ones. According to The Wall Street Journal:

Apple Inc. is being investigated by the Justice Department and the Securities and Exchange Commission over potential securities violations related to the company’s disclosure of a software update that slowed older iPhones, people familiar with the matter said.

The two probes add pressure on the tech giant to address criticism from customers and lawmakers after it acknowledged in December that it was throttling the performance of older iPhones as batteries aged. The company later apologized for the issue and slashed the price of an iPhone battery replacement to $29 from $79, hoping to win back customer goodwill.

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Chip sales helped Samsung post an impressive profit. According to The Wall Street Journal:

Samsung Electronics Co. delivered its third consecutive quarter of record results, owing to robust demand for its memory chips, though operating profit at its smartphone unit fell.

The Suwon, South Korea-based tech company said fourth-quarter net profit rose 42% to 12.26 trillion South Korean won ($11.4 billion) from 7.09 trillion won a year earlier.

The world’s largest smartphone maker said revenue rose to 65.98 trillion won from 53.33 trillion won a year earlier. Operating profit was 15.15 trillion won, an all-time high.

Unemployment in Germany reached a record low. According to Bloomberg:

German unemployment extended its decline at the start of the year as companies in Europe’s largest economy stepped up hiring to meet buoyant demand.

The jobless rate dropped to a record low of 5.4 percent in January, the Federal Labor Agency in Nuremberg said on Wednesday. The number of people out of work plunged a seasonally adjusted 25,000 to 2.415 million. Economists surveyed by Bloomberg forecast a drop of 17,000.

The head of a Swiss bank forecast a huge market correction this year. According to CNBC:

A market correction is well overdue and investors should expect a price drop of up to 15 percent this year, Julius Baer Chief Executive Bernhard Hodler told CNBC Wednesday.

“Generally I think we will see sooner or later a correction — hopefully it will be like a 5, 10, 15 percent correction, another very large one, but I think that will happen sometime in 2018,” Hodler said, sounding not in the least perplexed at the prospect.

Contrary to popular belief, America imports more energy than it exports. According to CNNMoney:

President Trump said Tuesday night: “We are now, very proudly, an exporter of energy to the world.”

And it’s true that the United States exports energy. It has for decades. It just imports a lot more.

The gap has been shrinking in recent years. But the U.S. Energy Information Administration estimates the United States will keep importing more energy than it exports until 2026 — maybe sooner and maybe later, depending on prices, world demand and regulation.

American exports of one form of energy, crude oil, are booming. But that’s not because of Trump. U.S. oil production has climbed substantially for a decade. And Congress repealed a law in 2015 and allowed U.S. producers to send crude to countries other than Canada.

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Xerox Corp. (NYSE: XRX) has been in deep trouble for years. It did not make the train traveling toward the digital storage and sharing of documents and corporate data. According to rumors in The Wall Street Journal and other media, two large shareholders have begun to pressure the Xerox board to sell the company, which may be the only way Xerox has a viable future.

According to the reports, Carl Icahn and Darwin Deason own just over 15% of Xerox shares, which may not be enough to force the board’s hand. Yet, they will use the leverage they apparently have to drive an attempt to find a buyer. Xerox, however, may be in enough trouble that a sale at over its current stock price may not be a possibility.

One of Xerox’s problems is that it has been broken into two pieces. A year ago, Conduent Inc. (NYSE: CNDT) was spun out. It describes itself as a “business process services” company, which makes it more of a consultancy than a seller of hardware. Xerox retained the hardware business, which sells products that may have been useful to businesses a decade ago but are no longer.

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Since the spin-off, Xerox’s stock has posted very modest performance, up 15% in the past year to $32. Over the same period, the S&P 500 is up 24% to 2,465. That makes the Xerox market cap about $8 billion. A buyout would probably need to be for $10 billion, if the board presses hard for a premium. In its most recently reported quarter, Xerox revenue dropped 5% from the same quarter last year to $2.5 billion. Per-share earnings were up 1.5% to $0.67. Operating margins were a minuscule 12.2%.

Presumably Icahn and Deason believe that Xerox can find a buyer that can cut Xerox expenses via synergies. That will not help increase revenues. Ultimately that is what would make the company valuable. And it will be a daunting job.

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Pressure from investors may trigger the sale of Xerox Corp. (NYSE: XRX). According to The Wall Street Journal:

Xerox Corp.’s first- and third-biggest investors, billionaires Carl Icahn and Darwin Deason, have formed an alliance and plan to encourage the printer and copier giant to explore a potential sale, according to people familiar with the matter.

The two investors, who together control more than 15% of Xerox’s shares, had already been separately calling for changes at the Norwalk, Conn., company on slightly different topics, but this would be the first time either has come out publicly for a potential sale.

Amazon.com Inc. (NASDAQ: AMZN) will open its first store without cashiers. According to The Wall Street Journal:

The new Amazon Go store, located in the base of Amazon’s main headquarters in Seattle, uses computer vision and machine-learning algorithms to track shoppers and charge them for what they select, thereby eliminating checkout counters.

In an interview last week, Dilip Kumar, vice president of technology for Amazon Go and Amazon Books, said testing with employees has trained the technology to work in the store, an experiment that is part of the company’s broader effort to reinvent how consumers shop.

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One of Twitter Inc.’s (NYSE: TWTR) top executives may leave to take another job. According to The Wall Street Journal:

Anthony Noto, a top Twitter Inc. executive, is in discussions to become the next chief executive of Social Finance Inc., according to people familiar with the matter, as the online lender grapples with accusations of improper workplace culture.

SoFi has been looking for a permanent chief executive since Mike Cagney’s departure in September.

“Jumanji: Welcome to the Jungle” had another monster weekend in theaters. According to Box Office Mojo:

Sony’s Jumanji: Welcome to the Jungle delivered a chart-topping $20 million as the film’s domestic cume climbs over $315 million. The film’s international cume added another $32.6 million this weekend as its worldwide total now stands at $767.8 million, moving it into the top 80 all-time.

The world’s richest 1% control 82% of the world’s wealth, according to Oxfam. The organization’s researchers report:

Eighty two percent of the wealth generated last year went to the richest one percent of the global population, while the 3.7 billion people who make up the poorest half of the world saw no increase in their wealth, according to a new Oxfam report released today. The report is being released as political and business elites, including President Trump, are heading to Davos, Switzerland for the World Economic Forum.

Oxfam’s report, ‘Reward Work, Not Wealth,’ reveals how the global economy enables the wealthy elite to capture vast wealth while hundreds of millions of people struggle to survive on poverty pay. This includes the stunning new finding that the economy created a new billionaire every other day over a period of one year

The ability to trade exchange traded funds (ETFs) may extend to 24 hours a day. According to CNBC:

TD Ameritrade extended trading hours on its platform starting Monday to 24 hours, five days a week for several popular exchange-traded funds. The eBroker also told CNBC trading individual stocks around the clock may not be too far away.

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Stocks were indicated to open higher marginally higher again on Tuesday, continuing Monday’s strong debut to the fourth quarter. The one trend that keeps on trucking in this more than eight year bull market is that investors have managed to keep finding new reasons to buy stocks after every market sell-off. Those same investors are also on the hunt for new investing and trading ideas with their capital.

24/7 Wall St. reviews dozens of analyst research reports each day. Our goal is to find new investing and trading ideas for our readers. Some of the top analyst reports cover stocks to buy. Other analyst calls cover stocks to sell or to avoid.

Additional color and commentary has been added on many of these daily analyst calls. The consensus analyst price target data and valuation metrics are from the Thomson Reuters sell-side research service.

These were the top analyst upgrades, downgrades and other research calls from Tuesday, October 3, 2017.

Accenture PLC (NYSE: ACN) was downgraded to Neutral from Positive with a $144 price target (versus a $135.44 prior close) at Susquehanna. Accenture has a 52-week trading range of $112.31 to $138.70 and a consensus analyst target price of $142.92.

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Ericsson (NASDAQ: ERIC) was downgraded to Underperform from Neutral at Credit Suisse, sending its American depositary shares down 2.1% to $5.64 on Tuesday. The 52-week range is $4.83 to $7.47.

General Motors Co. (NYSE: GM) was raised to Buy from Neutral with a $57 price objective (versus a $42.15 close) at Merrill Lynch. Shares were indicated up 1.6% at $42.83, and that is after a 4.4% rally on Monday to a prior 52-week high of $42.48. GM has a consensus target price of $39.52.

Phillips 66 (NYSE: PSX) was raised to Buy from Neutral at Goldman Sachs. Shares closed up 0.8% at $92.38 on Monday, and they were up another 1.7% at $93.99 on Tuesday. The 52-week range is $75.14 to $92.67, and the consensus target price is $91.07.

United Rentals Inc. (NYSE: URI) was started with a Hold rating and was given a $157 price target (versus a $139.20 close) at Deutsche Bank. It has a 52-week range of $70.58 to $139.98 and a consensus target price of almost $125.

Urban Outfitters Inc. (NASDAQ: URBN) was downgraded to Sell from Hold at Deutsche Bank. Its shares were up 0.4% at $23.99 on Monday but were indicated down 4.1% at $23.00 on Tuesday. The stock has a 52-week range of $16.19 to $40.80 and a consensus target price of $21.11.

Xerox Corp. (NYSE: XRX) was started as Neutral at UBS, and it was assigned a $36 price target (versus a $33.46 close). Xerox has a consensus target price of $37.29.

Yum! Brands Inc. (NYSE: YUM) was started with a Buy rating and assigned an $88 price target at Stifel. Yum has a 52-week range of $59.57 to $78.14 and a consensus analyst target of $79.40.

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Follow @Jonogg on Twitter to receive the daily analyst calls and other market research calls directly on your feed.

Other top analyst calls from this Tuesday were seen as follows:

AcelRx Pharmaceuticals Inc. (NASDAQ: ACRX) was started as Buy and assigned a $10 price target (versus a $5.50 close) at H.C. Wainwright.

Changyou.com Ltd. (NASDAQ: CYOU) was started as Neutral with a $40 price target (versus a $40.14 close) at Credit Suisse.

Chipotle Mexican Grill Inc. (NYSE: CMG) was started as Hold with a $345 price target (versus a $301.81 close) at Stifel.

Craft Brew Alliance Inc. (NASDAQ: BREW) was started as Positive with a $22 price target (versus a $17.80 close) at Susquehanna.

Endocyte Inc. (NASDAQ: ECYT) was raised to Outperform from Neutral with a $7 price target (versus a $3.63 close) at Wedbush Securities. The firm noted that in-licensing of its Phase 3 ready asset has improved its outlook with peak sales potentially at about $1 billion.

Lear Corp. (NYSE: LEA) was downgraded to Neutral from Buy with a $182 price target (versus a $175.04 close) at UBS.

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LGI Homes Inc. (NASDAQ: LGIH) was downgraded to Neutral from Outperform with a $49 price target (versus a $48.98 close) at Wedbush, noting that its price target had been met.

Manhattan Associates Inc. (NASDAQ: MANH) was raised to Buy from Hold with a $55 price target (versus a $43.20 close) at SunTrust Robinson Humphrey.

Marathon Petroleum Corp. (NYSE: MPC) was downgraded to Neutral from Buy at Goldman Sachs.

Masonite International Corp. (NYSE: DOOR) was downgraded to Neutral from Outperform with a $70 price target (versus a $68.70 close) at Wedbush. This downgrade was a valuation call within 5% of its target.

Neurocrine Biosciences Inc. (NASDAQ: NBIX) was reiterated as Buy and the price target was raised to $69 from $66 (versus a $61.82 close) at Jefferies. The firm’s latest doctor survey predicts that Ingrezza will continue to lead the market share in Tardive Dyskinesia (TD).

Rex Energy Corp. (NASDAQ: REXX) was downgraded to Sector Perform from Outperform with a $3 price target (versus a $2.62 close) at RBC Capital Markets.

Tyson Foods Inc. (NYSE: TSN) was reiterated as Buy and the price target was raised to $82 from $75 (versus a $70.99 close) at Jefferies.

Monday’s top analyst upgrades and downgrades were in AbbVie, Baker Hughes, CSX, Micron Technology, Nucor, PepsiCo, Western Digital and many more.

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July 24, 2017: The S&P 500 closed flat at 2,470.72. The DJIA closed down 0.2% at 21,530.70. Separately, the Nasdaq closed up 0.4% at 6,410.81.

Monday was a relatively mixed day for the broad U.S. markets. Crude oil posted a solid gain to start out the week, although there was not much of a reaction in oil & gas companies or industrials. The main detractors in the markets were the utilities sector as well as retailers. For the most part the financial sector was positive on the day while tech and health care stocks had largely mixed performances.

Crude oil was last seen up about 1.4% at $46.39.

Gold was relatively flat at $1,255.30.

The S&P 500 stock posting the largest daily percentage loss ahead of the close Monday was Hasbro, Inc. (NASDAQ: HAS) which traded down about 9.4% at $105.00. The stock’s 52-week range is $76.14 to $116.20. Volume was about 5.7 million versus the daily average of 873,000 shares.

The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Monday was Xerox Corp. (NYSE: XRX) which rose 3.8% to $30.56. The stock’s 52-week range is $22.90 to $30.76. Volume was 3.8 million compared to its average volume of 2.3 million.

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Stocks were indicated to open slightly lower on Monday, but the indexes remain close to all-time highs. This bull market may now be well over eight years old, but investors have proven over and over that they can find numerous different reasons to buy stocks after every single market sell-off. Those same investors are also searching for new investing and trading ideas.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new investing and trading ideas for our readers. Some of these analyst reports cover stocks to buy. Other reports cover stocks to sell or to avoid.

Additional color and commentary also has been added on most of the daily analyst calls. Consensus analyst price target data are from the Thomson Reuters sell-side research service.

These were the top analyst upgrades, downgrades and other research calls from Monday, July 24, 2017.

Blue Apron Holdings Inc. (NYSE: APRN) has seen its post-IPO quiet period come to an end. The stock closed at $6.55 on Friday, versus an $11 IPO price, and shares were indicated up 6% at $6.97 on Monday. Blue Apron was started as Outperform with an $11 target at Oppenheimer, and SunTrust Robinson Humphrey started it as Buy with a $12 price target. Goldman Sachs started Blue Apron as Buy with an $11 price target, and Stifel started it with a Buy rating and gave a $10 target. Needham assigned a Buy rating and $10 target. Barclays and Morgan Stanley were cautious with new Equal Weight ratings. Barclays has a $7 target and Morgan Stanley has a $7.50 target for Blue Apron.

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Boston Beer Co. Inc. (NYSE: SAM) was downgraded to Neutral from Buy and the price target was cut to $110 from $140 (versus a $137.30 prior close) at Goldman Sachs. The shares have a 52-week range of $128.70 to $194.98 and a consensus analyst price target of $142.75. They were indicated to open down about 1.8% at $134.80 on Monday.

Caterpillar Inc. (NYSE: CAT) was raised to Outperform from Market Perform with a $125 price target (versus a $106.58 close) at BMO Capital Markets. It has a 52-week range of $78.34 to $110.00 and a consensus price target of $106.61. Caterpillar shares were indicated to open up about 0.8% at $107.50 on Monday.

Goldman Sachs Group Inc. (NYSE: GS) was downgraded to Neutral from Buy with a $230 price target (versus a $220.19 close) at UBS. The stock has a 52-week range of $155.37 to $255.15 and a consensus price target of $238.08. Shares were indicated to open down about 0.5% at $219.10 on Monday.

Honeywell International Inc. (NYSE: HON) was reiterated as Outperform and its price target was raised to $155 from $148 (versus a $136.35 close) at Oppenheimer. Honeywell’s consensus target price is $140.67 and its 52-week range is $140.67.

Xerox Corp. (NYSE: XRX) was raised to Equal Weight from Underweight at Barclays. Shares closed at $29.45 and were indicated to open at $29.55 on Monday. Xerox has an adjusted 52-week range of $22.90 to $30.76 and a consensus price target of $33.00.

You can follow @Jonogg on Twitter if you want the daily analyst calls and other research notes directly on your feed.

Other key analyst calls were seen as follows:

Aileron Therapeutics Inc. (NASDAQ: ALRN) was started as Buy with a $20 price target at Jefferies, with the firm calling it an early-stage cancer story with favorable risk/reward metrics. Aileron Therapeutics was started as Buy with a $19 target price at Merrill Lynch.

Aon PLC (NYSE: AON) was reiterated as Buy and the price target was raised to $162 from $146 at Jefferies.

AzurRx BioPharma Inc. (NASDAQ: AZRX) was started with a Buy rating and assigned an $8 price target (versus a $3.70 close) at H.C. Wainwright.

Chicago Bridge & Iron Co. N.V. (NYSE: CBI) was downgraded to Neutral from Outperform with a $28 price target at Credit Suisse.

Concert Pharmaceuticals Inc. (NASDAQ: CNCE) was started with a Buy rating and given a $20 target price (versus a $14.02 close) at H.C. Wainwright.

Dova Pharmaceuticals Inc. (NASDAQ: DOVA) was started as Buy with a $30 price target (versus a $22.75 close) at Jefferies.

Floor & Decor Holdings Inc. (NYSE: FND) was started as Outperform with a $45 price target (versus a $37.40 close) at Wedbush Securities.

Franklin Resources Inc. (NYSE: BEN) was downgraded to Market Perform from Outperform with a $50 target price (versus a $46.67 close) at Wells Fargo.

Huntsman Corp. (NYSE: HUN) was raised to Overweight from Sector Weight with a $34 target price (versus a $26.72 close) at KeyBanc Capital Markets.

Mersana Therapeutics Inc. (NASDAQ: MRSN) was started as Outperform with a $25 target price (versus a $14.05 close) at Wedbush. Leerink started Mersana with an Outperform rating and gave a $23 target price.

Michaels Companies Inc. (NYSE: MIK) was raised to Overweight from Neutral at JPMorgan.

NeoPhotonics Corp. (NYSE: NPTN) was downgraded to Outperform from Strong Buy at Raymond James.

NextEra Energy Inc. (NYSE: NEE) was started with a Buy rating and assigned a $160 price target (versus a $144.37 close) at Goldman Sachs.

Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) was started with a Buy rating and assigned a $65 price target (versus a $55.07 close) at Merrill Lynch.

Royal Caribbean Cruises Ltd. (NYSE: RCL) was started as Neutral at Merrill Lynch.

Schlumberger Ltd. (NYSE: SLB) was maintained as Buy but the price target was lowered to $80 from $92 at Jefferies.

Triumph Group Inc. (NYSE: TGI) was downgraded to Hold from Buy with a $37 target price (versus a $34.20 close) at Jefferies.

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When Xerox Corp. (NYSE: XRX) reported fourth-quarter results before markets opened Tuesday, the business technology firm posted adjusted diluted earnings per share (EPS) of $0.25 on revenues of $2.73 billion. In the same period a year ago, the company reported EPS of $0.24 on revenues of $2.95 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.25 and $2.77 billion in revenues.

Full-year adjusted EPS totaled $0.88 and revenues came in at $10.77 billion, compared with 2015 EPS of $0.77 and revenues of $11.47 billion. Analysts were looking for full-year EPS of $0.91 and revenues of $10.79 billion.

Fourth-quarter and full-year results exclude discontinued operations, including the spin-off of Conduent Inc. (NYSE: CNDT) that became effective on December 31, 2016.

For fiscal year 2017, Xerox expects adjusted EPS in the range of $0.80 to $0.88. The company expects full-year operating cash flow of $700 million to $900 million and free cash flow of $525 million to $725 million. Operating cash flow for 2016 totaled $1.02 billion

Adjusted EPS for the full fiscal year is now forecast at $1.11 to $1.24. Consensus estimates called for fourth-quarter EPS of $0.34 and full-year earnings of $1.13. Xerox also expects full-year cash flow from operations of $950 million to $1.2 billion and free cash flow of $600 to $850 million.

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CEO Jeff Jacobson said:

With the separation of Conduent now complete, we turn our full attention to delivering on our strategy, which includes pursuing the growing areas of the market. As the strategy begins to yield results, our revenue trajectory is expected to improve over time while we expand our margins and continue to generate strong cash flows.

Xerox shares traded down nearly 4% to $6.68 late Tuesday morning. The stock’s 52-week range is $6.46 to $11.39. The consensus 12-month price target was $8.88 before this morning’s report.

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[cnxvideo id=”655234″ placement=”ros”]Stocks were soft on Thursday morning but the directional move is not so great that there is much conviction set for the day. Trump’s press conference on Wednesday created some volatility, but yesterday’s gain ended up almost 100 points and came within 50 points of the elusive Dow Jones Industrial Average 20,000. The two themes that remain are the post-election market strength and investors buying pullbacks. While this bull market is almost eight years old, there is also a case for Dow 21,422 to be hit in late 2017 or early 2018.

24/7 Wall St. reviews dozens of analyst reports each day of the week to find new investing and trading ideas for our readers. Some of these analyst research reports cover stocks to buy, while others cover stocks to sell or avoid.

These are the top analyst upgrades, downgrades and initiations on Thursday, January 12, 2017:

Credit Suisse downgraded AK Steel Holding Corp. (NYSE: AKS) to Neutral from Outperform with a $9.50 price target (versus an $11.02 prior close). The shares have a consensus analyst target price of $9.79 and a 52-week trading range of $1.64 to $11.39.

Shares of Merck & Co., Inc. (NYSE: MRK) were raised to Buy from Neutral with a $70 price target (versus a $61.63 close) at Guggenheim. The 52-week range is $47.97 to $65.46, and the consensus price target of $67.28.

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Pivotal Research downgraded Twitter Inc. (NYSE: TWTR) to Hold from Buy and cut its price target to $17 from $26 (versus a $17.30 close). It has a 52-week range of $13.73 to $25.25 and a consensus price target of $16.92.

Along with a United States Steel Corp. (NYSE: X) downgrade to Neutral from Outperform, Credit Suisse has a $30 price target (versus a $35.20 close). The consensus target price is $30.80, and the 52-week range is $6.15 to $39.14.

Walt Disney Co. (NYSE: DIS) was downgraded to Sell from Hold and given an $85 price target (versus a $109.44 close) at Pivotal Research. The 52-week range is $86.25 to $109.49, and the consensus price target is $110.00.

Since Xerox Corp. (NYSE: XRX) has completed its breakup, analysts have been rerating the stock. It was started as Overweight and assigned a $9 price target (versus a $7.01 close) at Morgan Stanley. The consensus analyst price is $8.89.

Other key analyst upgrades, downgrades and initiations were seen in the following:

• Apartment Investment and Management Co. (NYSE: AIV) was downgraded to Market Perform from Outperform with a $45 price target (versus a $43.97 close) at BMO Capital Markets.
• Atwood Oceanics Inc. (NYSE: ATW) was raised to Neutral from Sell at Citigroup.
• EnLink Midstream Partners L.P. (NYSE: ENLK) was raised to Outperform from Market Perform with a $19 price target (versus a $17.93 close) at Raymond James.
• Energy Transfer Equity L.P. (NYSE: ETE) was raised to Outperform from Market Perform at Raymond James.
• Esterline Technologies Corp. (NYSE: ESL) was downgraded to Hold from Buy at Jefferies.
• Fluor Corp. (NYSE: FLR) was raised to Buy from Hold and the price target was raised handily to $63 from $48 (versus a $53.12 close) at Deutsche Bank.
• Kaiser Aluminum Corp. (NASDAQ: KALU) was downgraded to Underperform from Neutral with a $77 price objective (versus an $81.45 close) at Merrill Lynch.
• Morgan Stanley (NYSE: MS) was raised to Buy with a $60 target at Soc-Gen.
• Northrop Grumman Corp. (NYSE: NOC) was downgraded to Hold from Buy with a $243 price target at Jefferies.
• Noble Corp. (NYSE: NE) was raised to Buy from Neutral with a $10 price target (versus a $7.56 close) at Citigroup.
• Steel Dynamics (NASDAQ: STLD) was downgraded to Neutral from Outperform with a $33 price target (versus a $37.07 close) at Credit Suisse.
• Targa Resources Corp. (NYSE: TRGP) was raised to Outperform from Market Perform with a $62 price target at Raymond James.

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You can follow @Jonogg on Twitter if you would like the daily analyst calls directly on your own feed.

Wednesday’s top analyst upgrades and downgrades included Citigroup, Chipotle Mexican Grill, Exxon Mobil, Occidental Petroleum, Regions Financial, T-Mobile, Williams Companies, Paychex and over a dozen more.

The post Top Analyst Upgrades and Downgrades: AK Steel, Merck, Twitter, US Steel, Disney, Xerox and More appeared first on 24/7 Wall St..

[cnxvideo id=”509733″ placement=”ros”]January 3, 2017: Here are four stocks trading with relatively heavy volume among 23 equities making new 52-week lows in Tuesday’s session. On the NYSE, advancers led decliners by about 3 to 1 and on the Nasdaq advancers led decliners by nearly 2 to 1. Total volume reached about 75 of the daily average.

Xerox Corp. (NYSE: XRX) dropped about 23% on Tuesday to post a new 52-week low of $6.46 after closing at $8.73 on Friday. The dip was the result of the company’s completed separation into two firms this morning. After the early drop shares had gained around 17% by late afternoon, probably on the strength of a cash payment of $1.8 billion.

Inotek Pharmaceuticals Inc. (NASDAQ: ITEK) dropped about 73% on Tuesday to post a new 52-week low of $1.65 against a 52-week high of $10.90 and a Friday close of $6.10. Volume of about 15 million was more than 40 times the daily average of around 310,000. The company’s late-stage trial of a glaucoma treatment failed.

Medtronic plc (NYSE: MDT) dropped about 2.6% Tuesday to post a new 52-week low of $69.35 after closing Friday at $71.23. The 52-week high is $89.27. Volume of around 8.6 million was about 20% more than the daily average of around 6.2 million shares traded. The company’s stock was downgraded this morning at Morgan Stanley.

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Gulfport Energy Corp. (NASDAQ: GPOR) dropped about 6.5% on Tuesday to post a new 52-week low of $20.24 after closing at $21.64 on Friday. The stock’s 52-week high is $34.67. Volume was about 50% higher than the daily average of around 3.3 million shares. The company had no specific news Tuesday.

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[cnxvideo id=”507121″ placement=”ros”]The holidays are a particularly cruel time to lay off people, or to tell them they will be laid off soon. That has not stopped a number of companies from doing so. The most recent large public corporations to disclose job cuts are Boeing Co. (NYSE: BA) and General Motors Co. (NYSE: GM), but they are not alone.

Caterpillar Inc. (NYSE: CAT) announced layoffs and even said it was a bad time of the year to let workers go. According to the Herald Democrat on December 15:

Officials with Caterpillar announced a new series of company-wide layoffs Wednesday amid lower projected sales and revenues in 2017 than the previous year. Caterpillar would not confirm the scope of the layoffs, but local sources confirmed this includes positions at the company’s Denison location.

“There is never a good time for announcements like this, but we recognize this is particularly difficult for employees and their families during the holidays,” Caterpillar Spokesperson Lisa Miller said Thursday.

Note that Caterpillar’s stock has been the second most successful in the Dow Jones Industrial Average this year, up 36%.

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Recently, a large Florida call center company laid off hundreds. According to the Sun Sentinel:

Sitel Corp., a call center operation in Pompano Beach, has issued a notice to the state of Florida that it plans to lay off 804 workers in February.

Located at 2528 NW 19th St., Sitel said the layoff would be between Feb. 14 and 28, according to the Worker Adjustment and Retraining Notification posted Friday. Sitel couldn’t be reached for comment.

Stumbling Xerox Corp. (NYSE: XRX) will cut workers as it makes itself into two companies. According to MarketWatch:

President Jeff Jacobson, who will become Xerox’s chief executive after the spin-off, said in an interview that the company needed changes to put it on a stronger footing.

“Part of that unfortunately comes from headcount reductions,” Mr. Jacobson said. “You want to be a leaner organization.”

Retailer Limited Stores, part of the giant L Brands Inc. (NYSE: LB), is on that train too. A story in the Columbus Dispatch included management comments:

“As you know, product misses and massive shifts in retail shopping trends have been especially difficult for the company’s business, and the company is dealing with significant debt obligations,” wrote Larry Fultz, an executive vice president and chief operating officer.

“We have now determined that the combination of sales misses and the level of existing financial obligations will require that the company be sold or we will have to wind down our operations due to an anticipated lack of operating capital.”

And what was once one of the hottest new tech hardware companies, GoPro Inc. (NASDAQ: GPRO), has fallen on hard times. According to The New York Times on November 30:

GoPro, the manufacturer of the wearable camera that has been a favorite of athletes, thrill-seekers and anyone else who wants to capture video of their antics, announced on Wednesday that it will eliminate hundreds of jobs to hold down costs.

The company’s chief financial officer, Brian T. McGee, said in a webcast that GoPro would reduce its work force by about 15 percent, or around 200 full-time positions, and cut back on its use of contractors. It will also eliminate its entertainment unit, he said.

This list is just the tip of the proverbial iceberg. Merry Christmas and a Happy New Year.

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Xerox Corp. (NYSE: XRX) reported third-quarter 2016 results before markets opened Friday. The business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.27 on revenues of $4.21 billion. In the same period a year ago, the company reported EPS of $0.24 on revenues of $4.33 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.27 and $4.31 billion in revenues.

The company said its planned separation remains on track to be completed by the end of 2016. The newly formed company, Conduent Inc., comprises Xerox’s business process outsourcing business and will trade on the New York Stock Exchange. The transaction is expected to be tax-free for Xerox shareholders.

For the fourth quarter, Xerox expects adjusted EPS in the range of $0.32 to $0.35. Adjusted EPS for the full fiscal year is now forecast at $1.11 to $1.24. Consensus estimates called for fourth-quarter EPS of $0.34 and full-year earnings of $1.13 per share. Xerox also expects full-year cash flow from operations of $950 million to $1.2 billion and free cash flow of $600 million to $850 million.

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Ursula Burns, who is among the executives on our list of CEOs who have to go, had this to say in the earnings report:

In an important period for Xerox when our separation-related activities ramped up significantly, we delivered solid financial results despite challenging market conditions. This reflects our commitment to executing on all aspects of our ambitious agenda, including our strategic transformation and achieving our 2016 financial objectives

Xerox shares closed at $9.57 on Thursday, down about 0.8% for the day, and they traded down about 1.5% in Friday’s premarket session. The stock’s 52-week range is $8.48 to $11.39. The consensus 12-month price target was $11.32 before this latest earnings report.

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In its 2016 Best Global Brands report, consultancy Interbrand focuses on growth for companies, stockholders, stakeholders and, if done really well, humanity in general. That’s a tall order for a product, much less a brand.

Interbrand’s Paola Norambuena outlines four factors common to the best brands in this year’s survey:

A clear strategy for growth

Not all growth challenges are the same—whether an organization needs to scale before leaping forward, whether it needs to break a new barrier in order to expand, or whether it needs to reinvent in order to find new relevance, what Best Global Brands exhibit is the ability for deep and honest introspection—but they never get stuck there. It’s about having enough understanding to ensure meaningful change and speed of action.

The blurring of traditional sectors

As [clear definitions between traditional sectors] continue to blur, traditional measures and competitive comparisons change dramatically. And it becomes all the more critical that real measures come from a brand’s core—from its business and brand strategy.

Continue to borrow from the best

By aligning with complementary partners, as well as acquiring or embracing what others do exceptionally well, each organization can strengthen its core offering, extend its positioning, accelerate innovation, and create new experiences for customers. Selecting these partners or acquisitions takes great care, but the growth opportunity can be exponential.

Cohesiveness for customer-centricity

The leading and Top Growing Best Global Brands understand that branding is not an exercise in vanity, but a keen tool for business growth. That’s what yields beautifully connected and intuitive experiences for real people.

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The companies posting the largest gains in brand value in the 2016 Interbrand study were Facebook, up 48% to a brand value of $32.6 billion, and Amazon, up 33% to a value of $50.4 billion. As a percentage of market cap, Facebook’s brand value is equal to 8.9% of its market cap, and Amazon’s brand value is equal to 12.7% of its market cap.

At the other end of the top 100 global brands are the companies that have lost brand value since the last Interbrand survey. Some, like IBM, Xerox and Gillette, have been on steady downward trajectories for the past three years. Others, like Shell, ran into economic headwinds, and still others, like Volkswagen, made huge mistakes that bludgeoned the brand.

The following list includes the 13 brands that lost the most brand value in 2016. We’ve include their percentage drop, the total brand value, and brand value’s percentage of market cap as of Wednesday morning.

1. International Business Machines Corp. (NYSE: IBM): down 19%; brand value $52.5 billion; 34.9% of market cap. IBM dropped 8% of its brand value in 2014 and 10% more in 2015.
2. Royal Dutch Shell PLC (NYSE: RDS-A): down 17%; $4.6 billion; 2.1%. The oil supermajor added 14% in 2014 and dropped 12% in 2015.
3. Prada: down 12%; $5.5 billion; 67% of market cap. The fashion house added 7% in 2014 and added 4% in 2015.
4. Xerox Corp. (NYSE: XRX): down 12%; $5.3 billion; 52.5% of market cap. The technology company dropped 2% in 2014 and dropped 9% in 2015.
5. Ralph Lauren Corp. (NYSE: RL): down 12%; $4.1 billion; 49.4% of market cap. The apparel firm added 9% in 2014 and dropped 7% in 2015.
6. Gillette: down 10%; $19.95 billion; n/a. The brand dropped 9% in 2014 and dropped 3% in 2015 (Procter & Gamble paid $57 billion for Gillette in 2006).
7. HSBC Holdings PLC (NYSE: HSBC): down 10%; $10.5 billion; 7% of market cap. The big bank added 8% in 2014 and dropped 11% in 2015.
8. Volkswagen: down 9%; down 9%; $11.4 billion; 16% of market cap. The German carmaker added 23% in 2014 and dropped 9% in 2015.
9. Discovery Communications Inc. (NASDAQ: DISCA): down 9%; $5.9 billion; 39% of market cap. The entertainment company added 7% in 2014 and added 6% in 2015.
10. Tiffany & Co. (NYSE: TIF): down 9%; $5.76; 63.8% of market cap. The luxury jeweler added 9% in 2014 and added 6% in 2015.
11. Caterpillar Inc. (NYSE: CAT): down 9%; $5.45 billion; 10.5% of market cap. The heavy equipment maker dropped 4% in 2014 and dropped 12% in 2015.
12. Burberry: down 9%; $5.36 billion; 66% of market cap. The fashion apparel company added 8% in 2014 and added 5% in 2015.
13. MTV: down 9%; $4.32 billion; n/a. The entertainment company (owned by Viacom) added 2% in 2014 and dropped 7% in 2015.

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[cnxvideo id=”655422″ placement=”ros”]24/7 Wall St. is constantly on the hunt for undiscovered opportunities and hidden value in the financial markets. Even in hard times there are always some opportunities that can be found. Each morning of the week we review dozens of analyst upgrades, downgrades and initiations, which ends up being hundreds of analyst calls each week. These calls are made from bulge bracket firms like Goldman Sachs and Merrill Lynch all the way down to regional and boutique firms whose investor reach and influence is generally smaller.

One category of analyst calls that often comes with great upside is in the small-cap and low-priced stocks. Some of these stocks trade under $10 per share. Frequently in this category of cheap and small cap stocks the projected analyst upside just seems ludicrous. Other times it seems more reasonable, and in many cases the stocks have traded at those levels before.

24/7 Wall St. tries to warn its readers endlessly that it is best not to trust any analyst call blindly. The reality is that there is no free lunch on Wall Street. Where else can you get your call right, but the timing can be days or hours off?

Array BioPharma Inc. (NASDAQ: ARRY) was initiated with an Outperform rating and a $9 price target at Cowen on September 12. Shares closed Friday at $3.47, with a consensus analyst price target of $8.00 and a 52-week trading range of $2.38 to $5.87.

Boingo Wireless Inc. (NASDAQ: WIFI) was started as Outperform with a $12 price target on September 13. Shares of Boingo were last trading at $9.13. The consensus price target is $11.01, and the 52-week range is $5.40 to $9.88.

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Eldorado Gold Corp. (NYSE: EGO) was raised to Buy from Underperform with a $5 price objective Merrill Lynch on September 14. Shares were closed most recently at $3.99, in a 52-week range of $1.87 to $5.16. The consensus price target is $5.76.

Energy Recovery Inc. (NASDAQ: ERII) was upgraded to a Buy rating from Hold at Jefferies on September 13, with a price target of $20. Jefferies noted a triple thesis: high incremental margins, recovery in the core desalination market and validation of the broader theme of harvesting fluid pressure in high-pressure and toxic environments. Shares closed out the week at $14.57, with a consensus price target of $15.75 and a 52-week range of $2.07 to $14.65.

Extreme Networks Inc. (NASDAQ: EXTR) was raised to a Buy rating from Neutral at D.A. Davidson. The stock was most recently trading at $4.23 a share. The consensus analyst target is $5.26. The 52-week range is $2.32 to $4.55.

Mirna Inc. (NASDAQ: MIRN) was started with a Buy rating and assigned a $6 price target at H.C. Wainwright on September 12. Shares closed at $2.25, with a consensus price target of $7.38 and a 52-week range of $2.23 to $11.01.

Xerox Corp. (NYSE: XRX) was started with a Buy rating and assigned a $13 price target at SunTrust Robinson Humphrey. Remember that Xerox is breaking itself up. The stock has a 52-week range of $8.48 to $11.39 and a consensus price target of $11.32. Shares closed Friday at $9.80.

Xplore Technologies Corp. (NASDAQ: XPLR) was initiated as a Buy rating with a $5 price target at Maxim Group. Shares were last trading at $2.25. The consensus price target is $3.70, and the 52-week range is $2.10 to $6.15.

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Demand Media Inc. (NYSE: DMD) was initiated with a Buy rating and a $10 price target at Craig Hallum on September 12. Shares closed at $5.91 apiece, with a consensus price target of $7.07 and a 52-week range of $3.94 to $6.47.

Oasmia Pharmaceutical AB (NASDAQ: OASM) was initiated as a Buy with a $6 price target at Rodman & Renshaw. Shares closed Friday at $3.39, in a 52-week range of $2.75 to $5.25. The consensus analyst target is $6.00.

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Stocks were weak across the board on Tuesday morning after Monday’s snap-back rally tried to negate Friday’s big drop. It appears that volatility is back in the market again, but the bull market is now seven and a half years old. Investors have proven over and over that they will buy any real pullbacks, and they remain opportunistic when they find new ideas to generate income or gains ahead.

24/7 Wall St. reviews dozens of analyst research reports each morning of the week. The goal is to find new investing and trading ideas. Some analyst research reports cover stocks to buy, and some reports feature stocks to sell or to avoid.

These are the top analyst upgrades, downgrades and initiations seen on Tuesday morning:

Anthem Inc. (NYSE: ANTM) was downgraded to Hold from Buy with a $138 price target (versus a $128.58 prior close) at Jefferies. The cut is on expense concerns and lack of catalysts. Anthem has a 52-week trading range of $115.63 to $152.44 and a consensus analyst price target of $165.82.

D.R. Horton Inc. (NYSE: DHI) was raised to Buy from Neutral at Merrill Lynch, but the firm maintained its $36 price objective. It has a consensus price target of $35.05 and a 52-week range of $22.97 to $34.56.

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Intuit Inc. (NASDAQ: INTU) was downgraded to Underweight from Equal Weight with a $105 price target (versus a $109.54 close) at Morgan Stanley. The 52-week range is $84.36 to $116.97, and the consensus price target is $114.38.

KLA-Tencor Corp. (NASDAQ: KLAC) was raised to Outperform from Neutral and the price target was raised to $85 from $82 at Credit Suisse. The firm sees multiple paths for shareholders to win. The 52-week range is $46.76 to $77.85, and the consensus price target is $76.70.

Netflix Inc. (NASDAQ: NFLX) was downgraded to Underperform from Neutral at Macquarie, based on more competition and rising content cost concerns. Netflix was also just named on a list of the most expensive stocks in a high valuation market on Monday. It has a 52-week range of $79.95 to $133.27 and a consensus price target of $104.42.

Potash Corp. of Saskatchewan Inc. (NYSE: POT) was downgraded to Outperform from Buy at CLSA. The company is merging with Agrium, and after closing at $16.76, shares have a consensus price target of $16.35.

Signet Jewelers Ltd. (NYSE: SIG) was downgraded to Market Perform from Outperform with an $85 price target (versus a $78.54 close) at Cowen. The consensus analyst target is up at $112.00, and the 52-week range is $76.10 to $152.27.

Xerox Corp. (NYSE: XRX) was started with a Buy rating and assigned a $13 price target (versus a $9.81 close) at SunTrust Robinson Humphrey. As a reminder, Xerox is breaking itself up. It has a 52-week range of $8.48 to $11.39 and a consensus analyst price target of $11.15.

You can follow @Jonogg on Twitter if you want the daily analyst calls and research updates directly on your Twitter feed.

Other key analyst upgrades and downgrades from this Tuesday were seen as follows:

American Farmland Co. (NYSEMKT: AFCO) was downgraded to Hold from Buy at Deutsche Bank.

Agrium Inc. (NYSE: AGU) is merging with Potash Corp. and is seeing post-news downgrades. Agrium was cut to Underperform from Buy at Merrill Lynch and downgraded to Market Perform from Outperform at BMO Capital Markets.

Applied Genetic Technologies Corp. (NASDAQ: AGTC) was last seen down 25% at $9.88, under its prior 52-week low of $10.89, after earnings. It was downgraded to Sell from Buy at Janney and to Market Perform from Outperform at Wells Fargo.

Camden Property Trust (NYSE: CPT) was downgraded to Sell from Neutral at UBS.

Check Point Software Technologies Ltd. (NASDAQ: CHKP) was downgraded to Hold from Buy at Wunderlich.

Cohen & Steers MLP Income and Energy Opportunity Fund (NYSE: MIE) was raised to Neutral from Underperform at Merrill Lynch.

CONE Midstream Partners L.P. (NYSE: CNNX) was downgraded to Neutral from Outperform at Credit Suisse.

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EnLink Midstream LLC (NYSE: ENLC) was downgraded to Underperform from Neutral with a $17 price target at Credit Suisse, which also downgraded EnLink Midstream Partners L.P. (NYSE: ENLK) to Neutral from Outperform with a $21 price target.

Enable Midstream Partners L.P. (NYSE: ENBL) was downgraded to Neutral from Outperform with $16 price target at Credit Suisse.

Headwaters Inc. (NYSE: HW) was started with a Buy rating and assigned a $21 price target (versus a $16.98 close) at Jefferies, based on it being an underappreciated growth stock with a favorable setup at current prices.

Progress Software Corp. (NASDAQ: PRGS) was downgraded to Neutral from Buy at Ladenburg Thalmann.

Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) was downgraded to Underperform from Buy with a $50 price objective (versus a $48.83 close) at Merrill Lynch.

Viacom Inc. (NASDAQ: VIA) was raised to Buy from Neutral at Brean Capital.

Monday’s top analyst calls included Colgate-Palmolive, Gilead Sciences, Navistar, Occidental Petroleum, Pandora Media, Wal-Mart and over a dozen more.

The post Top Analyst Upgrades and Downgrades: Anthem, DR Horton, Intuit, KLA-Tencor, Netflix, Potash, Signet, Xerox and More appeared first on 24/7 Wall St..

Xerox Corp. (NYSE: XRX) reported second-quarter 2016 results before markets opened Friday. The business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.30 on revenues of $4.4 billion. In the same period a year ago, the company reported EPS of $0.24 on revenues of $4.47 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.25 and $4.39 billion in revenues.

Xerox said it filed its registration statement in June to complete the separation of the company into two businesses, essentially wiping the slate back to 2009 when Xerox acquired business software and services business ACS. The separation is still on track to be completed by the end of this year.

In the first quarter, Xerox said revenue in its Services business decreased by 2% to $2.5 billion (down 1% in constant currency), and service margins rose by 2.4 percentage points to 9.6%. After the separation, this part of the business will be renamed Conduent and trade on its own.

Revenue in the Document Technology business came in at $1.8 billion, down 7% (down 6% in constant currency). Margin ticked up 0.1 point to 12.6%. The part of the business will retain the Xerox name after the separation.

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Ursula Burns, who is among the executives on our list of CEOs who have to go, had this to say in the earnings report:

Our Services segment delivered substantial margin expansion and continued revenue growth in Document Outsourcing. Document Technology revenue declines moderated and margin improved driven by cost and productivity initiatives. … We reached critical milestones in both the separation process and strategic transformation program during the second quarter. With each step forward, I become even more optimistic about the future of our businesses and more confident in our ability to meet our targets for the year while creating two companies with the strong strategic and financial foundations they will need to compete in their respective markets.

Xerox expects third-quarter 2016 GAAP earnings of $0.14 to $0.16 per share and adjusted EPS of $0.26 to $0.28 per share. The consensus estimate calls for adjusted EPS of $0.28 on revenue of $4.33 billion.

For full-year 2016, Xerox reiterated guidance for adjusted EPS in a range of $1.10 to $1.20 per share. Analysts are looking for EPS of $1.09 and revenues of $17.53 billion.

Xerox shares closed at $9.91 on Thursday, down about 0.9% for the day and were inactive early Friday morning. The stock’s 52-week range is $8.48 to $11.46. Thomson Reuters had a consensus 12-month price target of $10.85 before this earnings report.

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Keeping employees happy can only improve a company’s bottom line. Employee satisfaction can significantly impact the productivity, sales, and reputation of any company. Despite its importance, many companies struggle to keep their employees content. While some companies have policies specifically designed to boost employee morale, others seem to prioritize it far less.

For the fifth consecutive year, 24/7 Wall St. identified the nation’s worst companies to work for. 24/7 Wall St. analyzed thousands of employee reviews from jobs and career website Glassdoor. The site maintains a growing database of more than 8 million employee reviews for more than 540,000 companies worldwide.

The worst rating any U.S. company received is 2.5 stars out of five, significantly lower than the 3.2 average company rating on Glassdoor. Three companies — Family Dollar Stores, Express Scripts and Forever 21 — received this lowest rating and top the list of the worst companies to work for.

Click here to see the worst companies to work for.

In an interview with 24/7 Wall St., Scott Dobroski, a Glassdoor spokesperson, explained that the three leading drivers of long-term employee satisfaction include: “culture and values, career opportunities, and trust in senior leadership.” For Dobroski, any company can improve these features by listening to employee feedback and addressing them in a timely manner.

Many complaints about the companies with the lowest ratings concern the lack of those leading drivers. According to some employee reviews of RadioShack, for example, sales associates believe upper management is out of touch; they see little room for professional growth; and they are unimpressed by the company’s culture.

Many employees at the worst companies to work for also cite poor work-life balance, low pay, and poor leadership as major reasons for their discontent. By contrast, technology companies such as Google and Facebook, which are some of the best rated companies, are notorious for high pay and generous perks.

Tech companies are not the only ones that manage to take care of their employees. Wholesale grocery store Costco, for example, has some of the best employee reviews of any company. There are numerous highly rated companies such as Costco where pay is by no means the only factor in employee satisfaction.

However, most of the worst-rated companies are customer-facing, low-paying businesses with high employee turnover rates. For nine of the 10 companies, the most commonly reported annual compensation on Glassdoor is lower than the national average annual wage of $48,320. The majority of these 10 companies operate in the retail trade sector, which has an above-average turnover rate, according to the Bureau of Labor Statistics.

The high turnover rates at these companies suggest employers treat employees as easily replaceable. With low-skilled workers readily available, employees at some of these companies may indeed be disposable. However, many companies with the lowest employee satisfaction are also not doing especially well financially, which may suggest that low employee satisfaction is but a symptom of poor management overall. The Employment Policy Foundation also estimates it costs a company an average of $15,000 each time a an employee leaves

Just as employee satisfaction can impact profits, a company’s financial performance can impact employee satisfaction. Many major retailers are losing ground to online giants such as Amazon.com, and their in-store sales are falling. As a result, employees working on commission may find it more difficult to earn commission wages. Similarly, as many of these businesses close stores and implement other cost cutting measures, employees may be assigned shorter shifts and consequently earn less. In Kmart, for example, where cashiers frequently complain about the difficulty of working on commission at a failing retailer, all full-time positions were recently switched to part-time.

To identify the 10 worst companies to work for, 24/7 Wall St. independently examined employee reviews on Glassdoor — this is not a Glassdoor.com commissioned report. To be considered, a company needed to have a minimum of 1,500 reviews and be currently operating and headquartered in the United States. Employee counts are from the most recent financial documents for each company. For subsidiaries, head counts are for the parent company.

These are the 10 worst companies to work for.

10. Kraft Heinz Company (NASDAQ: KHC)
>Rating: 2.6
> CEO approval rating: 24%
> Employees: 42,000
> Industry: Food manufacturer

Kraft Heinz produces some of the most popular consumer brands in the country, including Kraft, Heinz, Oscar Mayer, Jell-O, Planters, and Lunchables. The company was formed in 2015 as the result of a merger between Kraft Foods Group and H.J Heinz Holding Corporation.

Many employees cite the merger as having had a negative impact on the company’s culture. The merger resulted in numerous layoffs and plant closures across the United States. Employees also commonly complain about the company’s cost cutting measures and their difficulty in maintaining work-life balance. One former employee from Pennsylvania echoed many other complaints by writing “corporate leaders don’t truly respect or care about their employees. They only care about making money off of them.”

The average employee rating of Kraft Heinz is 2.6 stars out of five, tied for the second lowest rating of any U.S. company.

9. Dillard’s (NYSE: DDS)
> Rating: 2.6
> CEO approval rating: 37%
> Employees: 40,000
> Industry: Department stores

Founded in 1938 by William T. Dillard, Dillard’s department store chain has nearly 300 locations across 29 states. Despite going public in 1969, Dillard’s is still something of a family business. Currently, four of CEO Bill Dillard II’s siblings work as company executive officers, and William Dillard III, the CEO’s son, is a senior vice president.

While the Dillard family may be happy with their jobs, the typical Dillard’s employee is not. With a 2.6 job satisfaction rating on Glassdoor, for the fifth consecutive year, Dillard’s ranks among the worst companies to work for. Dissatisfied workers frequently cite unrealistic sales quotas and poor management practices. Not only is employee morale suffering at Dillard’s, but it seems business is as well. In keeping with a nationwide trend among department stores, profits are down. The company posted net income of $269.4 million in its fiscal 2015, down from $331.9 million the previous year.

8. RadioShack
> Rating: 2.6
> CEO approval rating: 40%
> Employees: N/A
> Industry: Consumer electronics retail

After filing for Chapter 11 bankruptcy in February 2015, RadioShack announced plans to close about half of its stores and lay off thousands of employees. Many complaints about the company are the result of its decline. As in-store sales fell over the past few years, numerous sales associates found it more difficult to earn commission. Many employees have reported working shifts without a single customer entering the store. Employees frequently cite low pay and incompetent upper management as major drawbacks of working at the company.

After the bankruptcy, most of RadioShack’s stores were salvaged through a deal to co-brand locations with cellular phone provider Sprint. While the deal saved thousands of jobs, however, it has not meaningfully improved employee satisfaction. One of the most common complaints from employees is the heavy pressure to sell cell phones.

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7. DISH (NASDAQ: DISH)
> Rating: 2.6
> CEO approval rating: 42%
> Employees: 18,000
> Industry: CATV systems

As is the case with many of the worst companies to work for, a large share of jobs at DISH are customer service oriented. Also similar to many companies on the list, dissatisfied employees at the company regularly cite long hours and poor work-life balance as the reason for their discontent.

The subscription television service industry is notorious for poor customer relations. The customer experience of DISH’s 13 million-plus subscribers is not likely helped by low employee morale.

Low employee morale may also be having an impact on the company’s bottom line as well as investor relations. The company’s stock price has fallen by roughly 25% in the past year, significantly underperforming the market. In addition, net income is down to $769.3 million in 2015 from $928.9 million the previous year.

6. Kmart (NASDAQ: SHLD)
> Rating: 2.6
> CEO approval rating: 20%
> Employees: 178,000 (including Sears employees)
> Industry: Department stores

Kmart is another retailer with declining sales and low employee satisfaction. The chain is owned by Sears Holdings Corporation, which also owns Sears — also among the worst companies to work for. Kmart’s sales have fallen drastically over the past decade and a half, and lower sales mean lower wages for cashiers working on commission. On Glassdoor, employees often complain about low pay, long hours, and out of touch management.

Like many other department stores, Kmart is hurting, and the number of store locations is dwindling. The number of U.S. Kmart locations fell from 1,152 at the end of fiscal 2013 to 941 at the end of fiscal 2015.

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5. Xerox (NYSE: XRX)
> Rating: 2.6
> CEO approval rating: 36%
> Employees: 143,600
> Industry: Information technology services

Xerox employees are far more likely to be dissatisfied with their jobs than employees at most other major U.S. companies. Frequent employee complaints include stagnant pay and poor management. CEO Ursula Burns, who worked her way up from an intern position with the company 36 years ago and is the first African American woman to lead a Fortune 500 company, is approved of by only 36% of employees.

In addition to low employee morale and a lack of confidence in company leadership among employees, Xerox sales have declined in recent years. Annual revenue is down to $18.0 billion from $19.5 billion the year before and from $20.0 billion in 2013.

Earlier this year, Xerox announced it would split into two distinct companies, one for business processes, including accounting and customer care, and another for document processing. The split is scheduled to be completed by the end of 2016, and has already spurred thousands of layoffs.

4. Sears (NASDAQ: SHLD)
> Rating: 2.6
> CEO approval rating: 19%
> Employees: 178,000 (including Kmart employees)
> Industry: Department stores

A large share of Sears Holdings Corporation’s 178,000 employees work at one of 705 Sears department store locations spread across all 50 states. For the second year in a row, department store chain Sears ranks as one of the worst companies to work for. A disproportionate number of company workers complain about earning minimum wage and frequently declining commission rates. The company’s CEO, Edward Lampert, is also among the least popular in the country. Less than one in five Sears employees approve of Lampert — and likely with good reason. The company has posted a net loss of at least $1.1 billion every year since he took over in 2013.

Low employee morale is likely affecting customers’ shopping experience. According to the American Customer Satisfaction Index, Sears ranks as the second worst department store for customer satisfaction. Sears Holdings also owns Kmart, an equally unpopular company to work for.

3. Family Dollar Stores (NYSE: FDO)
> Rating: 2.5
> CEO approval rating: 36%
> Employees: 60,000
> Industry: Discount stores

With 8,042 stores in 46 states, Family Dollar is nearly ubiquitous across the nation. It also ranks among the worst U.S. companies to work for. The majority of positions at the company are in customer service, which many employees cite as the best part of their job. The customer service aspect of working at Family Dollar is also often part of negative employee reviews, however. Unqualified managers and poor work-life balance are the most commonly cited complaints on Glassdoor. One Family Dollar worker in Michigan complained succinctly, “low pay, long hours, unrealistic expectations.”

Family Dollar was acquired by its former competitor Dollar Tree in July 2015. After the transaction, Gary Philbin was named CEO of Family Dollar, replacing Howard Levine. So far Philbin has not made a great impression on his employees, receiving an approval rating of just 36% on Glassdoor.

2. Express Scripts (NASDAQ: ESRX)
> Rating: 2.5
> CEO approval rating: 79%
> Employees: 25,900
> Industry: Health care plans

Express Scripts is a third-party administrator of prescription drugs for various commercial and government health plans, and is the largest pharmacy benefit management company in the country. The average employee rating of Express Scripts is 2.5 stars out of five, tied for the lowest rating of any U.S. company. Employees commonly cite incompetent management, difficulty maintaining work-life balance, and long hours as major drawbacks for working at the company. Many employees report working 10-hour days.

Though this is not the first time Express Scripts has ranked among the worst companies to work for, the company may be trying to turn things around. Earlier this year, Tim Wentworth took over as CEO. Chief executives can have an outsized impact on company culture, and some negative employee sentiment may have left with former CEO George Paz.

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1. Forever 21
> Rating: 2.5
> CEO approval rating: 30%
> Employees: 30,000
> Industry: Retail apparel

The average employee rating of Forever 21 is just 2.5 stars out of five, tied for the lowest rating of any company based in the United States. Many employees cite inadequate benefits and strict company policies as drawbacks to working at Forever 21.

Over the years, the store has been hit with several high profile lawsuits, including several filed by employees. In 2012, five Forever 21 employees filed a class action lawsuit against the company. The plaintiffs claimed that they and their co-workers were routinely detained in the store during lunch breaks and after their shifts without overtime pay so managers could search their bags for stolen merchandise — a part of the company’s former loss-prevention policy. Indeed, many employees on Glassdoor complain of not getting to leave the store until 2:00 a.m. or later, hours after the stores close, often receiving no overtime pay for the extra hours.

The post The Worst Companies to Work For appeared first on 24/7 Wall St..

Xerox Corp. (NYSE: XRX) CEO and Chair Ursula Burns did more to destroy the company than anyone in its decades long history. She was removed as chief executive, pending a split of Xerox into two companies and an executive search for a new CEO, but she will stay on as board chair of one of the two companies that Xerox will create as it cleaves itself in half.

The publicly traded corporation’s board decided:

In January, Xerox announced it would separate into two stand alone, market-leading companies – a Document Technology company comprised of its Document Technology and Document Outsourcing businesses and a Business Process Outsourcing (BPO) company. The separation is on track to be completed by the end of 2016. The Document Technology company will be a global leader in document management and document outsourcing with $11 billion in 2015 revenue.

Corporate raider Carl Icahn took a position in Xerox before the split.

Burns will have the board chair at the new document technology operation. Perhaps a new CEO can salvage what little Burns has left.
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At the annual meeting, Burns stated:

In 2015, we continued to optimize and position our portfolio for the future. By selling our Information Technology Outsourcing business and restructuring our government healthcare business, we achieved greater focus on higher margin growth segments in our Business Process Outsourcing and Document Outsourcing businesses. Additionally, in Document Technology we introduced nine new products that reinforced our reputation for market-leading innovation.

A look at 2015 results, and the long-term price of Xerox shares, shows how little these decisions meant.

Xerox stock has dropped 27% in past two years, while the S&P 500 has gained 8%.

In the first quarter of 2016, revenue dropped 4% to $4.281 billion. Net income dropped 85% to $34 million. Xerox broke even by a tiny margin. The results were a continuation of poor numbers that were not better in 2015.

Burns’s 2015 compensation was $10.6 million. It is impossible to understand how the board awarded her so much, and gave her any position in one of the two new companies.

The post Former Xerox CEO Burns, Who Nearly Destroyed Company, Still Chair appeared first on 24/7 Wall St..

Stocks were indicated marginally higher on Tuesday, but the markets still seem to be looking for a new directional bias after weeks of rallies took the market back to 2016 highs. It still seems that investors have voted to remain buying pullbacks, as from 2011 to 2015, but that might not mean endless chasing the market higher.

As a reminder, the S&P 500 is now valued at 17.8 times its forward 12-month price-to-earnings (P/E) ratio, after peaking at 17.9 last week.

24/7 Wall St. reviews dozens of analyst research reports each morning of the week to find new investing and trading ideas. Some of these analyst reports cover stocks to buy, whiles cover stocks to sell or avoid.

These are top analyst upgrades, downgrades and initiations seen on Tuesday morning:

Broadcom Ltd. (NASDAQ: AVGO) was maintained as Buy with a $200 price objective at Merrill Lynch, but the firm added it to the prized US 1 list as its target implies 33% upside. Broadcom has a consensus analyst price target of $179.04 and a 52-week trading range of $100.00 to $159.65.

Caterpillar Inc. (NYSE: CAT) was raised to Buy from Hold at Argus after last week’s earnings, and the firm established a price target of $92 (versus a $76.79 prior close). Argus noted that this implies upside of 20% from current levels, but noted that this is still 20% below the latest cycle highs. The consensus price target is $67.06, and the 52-week range is $56.36 to $89.62.
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Liberty Sirius XM Group (NASDAQ: LSXMA) was started as Buy with a 12-month price objective of $44 at Merrill Lynch. The firm believes that Liberty Sirius XM Group should benefit from solid underlying trends at Sirius XM, as well as a reduction in the net asset value discount.

Newmont Mining Corp. (NYSE: NEM) was raised to Outperform from Sector Perform with a $40 price target (versus a $31.11 close) at RBC Capital Markets. It has a consensus price target of $65.33 and a 52-week trading range of $47.11 to $75.72.

Palo Alto Networks Inc. (NYSE: PANW) was raised to Buy from Hold with a $190 price target (versus a $150.51 close) at Wunderlich. The consensus price target is $195.61, and the 52-week range is $111.09 to $200.55.

Perrigo Co. PLC (NYSE: PRGO) was downgraded to Hold from Buy at Jefferies, and the price target was cut to $112 from $163 (versus a $99.40 close). The cut is on its CEO leaving to run Valeant, but also the firm expects big slowdowns in the 2016 guidance. Stifel downgraded Perrigo to Hold from Buy. Shares closed down 18% at $99.40 on Monday, in a 52-week range of $98.81 to $200.96. The consensus price target is $152.88.

Sarepta Therapeutics Inc. (NASDAQ: SRPT) was indicated down more than 40% early Tuesday, at $8.40 or so, under its 52-week range of $10.20 to $41.97, after the FDA panel disappointed. Sarepta was maintained as Hold but the price target was slashed to $7 from $14 at Jefferies. The firm now sees no accelerated FDA approval after the panelists voted negative on eteplirsen efficacy despite strong pressure from points advocacy. Piper Jaffray downgraded Sarepta to Underweight from Neutral and cut its target price to $6 from $15. Oppenheimer cut its rating to Perform from Outperform.

Xerox Corp. (NYSE: XRX) was maintained as Neutral at Credit Suisse after earnings, but the firm cut the price target to $10 from $11 as the road to a breakup is not smooth. Brean Capital downgraded it to Hold from Buy. The consensus price target is $11.55, and the 52-week range is $8.48 to $11.88.

You can follow @Jonogg to get the daily analyst calls and market reports directly on your Twitter feed.

Other key analyst upgrades and downgrades from this Friday were seen in shares of the following:
Alliance Data Systems Corp. (NYSE: ADS) was started as Neutral with a $228 price target (versus a $203.90 close) at Susquehanna.

AMC Networks Inc. (NASDAQ: AMCX) was raised to Outperform from Neutral with an $82 price target (versus a $65.42 close) at Macquarie.

Canadian National Railway Co. (NYSE: CNI) was downgraded to Underperform from Buy at Merrill Lynch, now that the stock has risen 10% above its price objective. CIBC downgraded it to Sector Perform from Sector Outperform, while TD Securities downgraded it to Hold from Buy as well.

Charles River Laboratories International Inc. (NYSE: CRL) was started as Buy with a price target of $96 (versus an $81.67 close) at Gabelli.

Flextronics International Ltd. (NASDAQ: FLEX) was started with an Overweight rating and was assigned a $15 price target (versus a $12.12 close) at JPMorgan.

Global Payments Inc. (NYSE: GPN) was started as Neutral with an $82 price target (versus a $73.29 close) at Goldman Sachs.

Hain Celestial Group Inc. (NASDAQ: HAIN) was reiterated as Buy with a $50 price target (versus a $42.18 close) at Jefferies, but the firm added it to the Franchise Pick list due to a market that could double and with any market share losses being transitory.
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Medidata Solutions Inc. (NASDAQ: MDSO) was downgraded to Underperform but the price target was raised to $36 from $35 at Jefferies. The firm sees its total addressable market being more mature than investors realize and that will cap its revenue growth potential.

Spark Energy Inc. (NASDAQ: SPKE) was started as Outperform with a $27 price target (versus a $22.40 close) at FBR Capital Markets.

U.S. Bancorp (NYSE: USB) was downgraded to Hold from Buy at Deutsche Bank.

Zions Bancorp (NASDAQ: ZION) was reiterated as Outperform and the price target was raised to $30 from $27 (versus a $27.29 close) at Credit Suisse. The firm said that provisions were higher, but better net interest margin offset this along with loan growth and controlled expenses. Evercore ISI downgraded Zions to Hold from Buy.

Monday’s top analyst upgrades and downgrades included Baidu, Caterpillar, General Electric, Honeywell, Kimberly Clark, Schlumberger, Southern Energy and over a dozen more.

The post Top Analyst Upgrades and Downgrades: Broadcom, Caterpillar, Sirius XM, Newmont, Palo Alto, Perrigo, Sarepta, Xerox and More appeared first on 24/7 Wall St..

Xerox Corp. (NYSE: XRX) reported first-quarter 2016 results before markets opened Monday. The business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.22 on revenues of $4.28 billion. In the same period a year ago, the company reported EPS of $0.24 on revenues of $4.47 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.23 and $4.24 billion in revenues.

Xerox said it is on track to file its registration statement in July to complete the separation of the company into two businesses, essentially wiping the slate back to 2009 when Xerox acquired business software and services business ACS. The split was instigated by activist investor Carl Icahn and announced in January.

In the first quarter, Xerox said revenue in its Services business increased by 1% to $2.5 billion (up 2% in constant currency) and service margins rose slightly to 7.7%.

Revenue in the Document Technology business came in at $1.6 billion, down 10% (down 9% in constant currency). Margin fell 2.5 points to 10.2%.
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Ursula Burns, who is among the executives on our list of CEOs who have to go, had this to say in the earnings report:

We delivered adjusted EPS in line with our guidance, revenue growth in both the Document Outsourcing and BPO businesses of our Services segment, and a strong renewal rate in Services. Document Technology revenue declines remained in line with last quarter and continue to be pressured by weak developing markets economies. We have accelerated our cost reduction efforts across the company and expect to begin realizing the benefits in the second quarter. … We put in place a robust program management structure, mapped our path to the separation, initiated leadership searches and began building the strategic, operational and financial foundation of each company.

Xerox expects second-quarter 2016 GAAP earnings of six to eight cents per share and adjusted EPS of $0.24 to $0.26 per share. The consensus estimate calls for adjusted EPS of $0.26 on revenue of $4.39 billion.

For full-year 2016, Xerox expects adjusted EPS in a range of $1.10 to $1.20 per share.

The company now expects full-year GAAP EPS of $0.45 to $0.55, down from a prior estimate $0.66 to $0.76. Xerox expects full-year 2016 cash flow from operations of $950 million to $1.2 billion, down from an earlier estimate of $1.3 billion to $1.5 billion, and free cash flow of $600 million to $850 million, down from $1.0 billion to $1.2 billion. The company said it is aligning its full-year GAAP EPS and cash flow guidance to reflect separation costs and higher restructuring and related costs.

Xerox shares closed at $11.17 on Friday, up about 0.1% for the day and were inactive early Monday morning. The stock’s 52-week range is $8.48 to $11.88. Thomson Reuters had a consensus analyst price target of around $11.59 before the report.

The post Xerox Earnings a Mixed Bag as Company Prepares to Split appeared first on 24/7 Wall St..

Shareholders put their trust in the chief executive officer to direct the company to better fortunes. At some point, however, a CEO can do more harm than good. The telltale signs the CEO may be at that point are declining profits and falling stock prices. Every year, 24/7 Wall St. editors review a set of publicly traded corporations to identify the CEOs who should leave their companies — via retirement, firing, or shifting to non-operational roles inside their company.

24/7 Wall St. considered two groups: S&P 500 companies and post-2010 high-tech IPOs with valuations of at least $1 billion. In the first category, a CEO had to hold office for at least three years to to be considered. In the second, the CEO had to be in his or her job for two years.

Some groups of companies were completely excluded because the industries they are in have weakened significantly due to outside forces. The most obvious are energy sector companies. We also excluded companies that have completed major mergers, acquisitions or divestitures in the last year. Hewlett Packard, which split into two companies last November, is among this group.

Click here to see the CEOs that have to go in 2016.

We examined stock performance over one, two, and five years. CEO compensation was based on a three-year number as of the last proxy.

Finally, the editors used some judgement beyond raw data. CEOs who have repeatedly failed to successfully execute their own primary strategies made this list — even if shares in another S&P 500 or post-2010 IPO company dropped more.

1. Sears (NASDAQ: SHLD)
CEO: Edward Lampert
Year started: 2013
One year stock price change: -55.1%
Annual compensation: $5.7 million

Eddie Lampert was the architect behind the merger that created Sears Holding. In an $11 billion deal, Kmart took over Sears in 2005, forming the third largest retailer in the country. One of his goals was to sharply cut costs by combining overlapping operations of the two companies. Lampert’s hedge fund ELS Investments still controls Sears Holdings with a 53.2% position. After the company cycled through several CEOs, Lampert took the job himself in 2013. Sears reported $53.0 billion in revenue in 2007. By last year, revenue fell to $31.2 billion. The company, which lost money in each of the last four years, continues to shrink rapidly. In its last reported quarter, revenue fell to $5.8 billion from $7.2 billion in the same quarter of the previous year.

2. IBM (NYSE: IBM)
CEO: Virginia Rometty
Year started: 2012
One year stock price change: -18.9%
Annual compensation: $19.3 million

105-year old IBM is one of the greatest conglomerates in U.S. history. The company created some of the most important tech products of all time, including the mainframe computer and PC. The company has been battered by falling demand for large computers, a poor showing in the enterprise software and consulting business, and a weak move into the cloud computing market. IBM reported $103.6 billion in revenue in 2008. Revenue last year was $92.2 billion, and has continued to decline in 2015. Ginni Rometty has been CEO for four years. Rometty has repeatedly told shareholders the company will soon become dominant in cloud computing, mobile, and social media. Instead, it appears the company is having more trouble dealing with the changing tech landscape than Rometty is willing to admit.

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3. Xerox (NYSE: XRX)
CEO: Ursula Burns
Year started: 2009
One year stock price change: -31.6%
Annual compensation: $22.2 million

Carl Icahn has finally managed to achieve what many Xerox investors were hoping would happen for a long time. Following pressure from the billionaire shareholder, the company announced it is breaking in two. This breakup is essentially undoing CEO Ursula Burns’ 2010 purchase of Affiliated Computer Systems for $6.4 billion. At the time, the plan was to transform Xerox from a hardware and copier company to an IT consulting company. Xerox’s performance has been downhill since. The company is in such deep trouble that the Icahn plan did not lift the company’s stock price. It trades near its 52-week low, which puts it down 32% for the period. Revenue of the company Burns created hit $22.6 billion in 2011. Last year, revenue was $18.0 billion, and it continues to drop rapidly. Burns may not have a role in either of the two new companies.

4. Zynga (NASDAQ: ZNGA)
CEO: Mark Pincus
Year started: 2007-2013, 2015
One year stock price change: -10.8%
Annual compensation: $33,308

Zynga was in trouble from its first day as a public company. Its 2011 IPO was priced at $10 per share. It closed its first day of trading lower, at $9.50 per share. Zynga was one of the hot social media company IPOs along with Facebook (NASDAQ: FB) and Twitter (NYSE: TWTR). Shortly after the IPO, Wall Street briefly warmed to Zynga’s position as a game provider first and foremost. The stock, however, is currently down 80% since the IPO. Co-founder Mark Pincus held two critical jobs at Zynga: chairman and CEO. Pincus relinquished the CEO job in July 2013, but took back the job in April 2015. Pincus’s largest problem is that Zynga has been a one-trick pony. Farmville was its only wildly successful game, and the company did not manage to replicate the success of Farmville with other titles. For a hot social media company, Zynga is dying. Revenue in the last reported quarter fell to $186 million from $196 million in the same period the year before.

5. Valeant Pharmaceuticals (NYSE: VRX)
CEO: J. Michael Pearson
Year started: 2008
One year stock price change: -51.6%
Annual compensation: $10.3 million

Long-time Valeant Pharmaceuticals International Inc CEO Michael Pearson is credited for turning the company around via a massive shopping spree — but he has been under fire recently. The company makes a number of major drugs that target areas such as weight loss, vitamin deficiency, and depression. While revenue has soared from $1.2 billion in 2010 to $8.3 billion last year due to the many acquisitions, the deals have also left the company with a heavy debt load. More seriously, Valeant has been in the hot seat over rocketing drug prices and due to its relationship with specialty mail order pharmacy company Philidor. Philidor has been accused of charging customers for higher-priced drugs rather than cheaper generics among other questionable practices. Valeant management already appeared in front of a congressional hearing together with the so-called “pharma-dude” Martin Shkreli. The controversy around Philidor also triggered allegations of accounting fraud. In January, the company announced it may restate past financial results due to improper revenue recognition practices with Philidor. Valeant shares are down 70% from their 2015 peak. Although Pearson has been on a medical leave of absence since December, it is time for the Valeant board to fire the long-time CEO.

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6. Twitter/Square (NYSE: TWTR, NYSE: SQ)
CEO: Jack Dorsey
Year started: 2006-2008, 2015/2009
One year stock price change: -63,4%, -24.5%
Annual compensation: N/A, N/A

The time has come for Jack Dorsey — who holds two public company CEO jobs — to do the right thing. Dorsey is Square’s co-founder, chairman, president and CEO. He also took the job of managing the deeply troubled Twitter in July. It has become obvious that Twitter is going to be the much more demanding job. Both stocks have slid lower since Dorsey re-joined Twitter. Twitter’s shares plunged 63% in the last year, and Square’s dropped 24%. Moving out of the Square CEO job is the appropropriate decision because no one can run two deeply troubled companies — and Twitter is the more desperate of the two. By the time Dorsey is pressured to vacate his role as CEO of Square, it may be too late as many of the growth opportunities for Twitter will have passed. Twitter’s user-based growth has stalled, and many advertisers do not consider it a valuable marketing tool. Square, a mobile processing company, has more immediate prospects, as indicated by Visa’s investment. Dorsey has yet to do harm and he can still do good, but only at one company — and his talents would better serve Twitter.

7. SunEdison (NYSE: SUNE)
CEO: Ahmad Chatila
Year started: 2009
One year stock price change: -94.5%
Annual compensation: $7.7 million

Ahmad Chatila has been president and CEO of renewable energy company SunEdison (SUNE) since March 2009. Spinoffs and company restructuring have created some controversy, and the company is apparently very low on cash. An effort to raise capital in January resulted in the company’s stock becoming severely diluted. The company’s shares are down 95% from its 52-week high. As liquidity and business model concerns persist, the big question now is whether SunEdison can still make it — even with a new leader. With David Einhorn’s hedge fund Greenlight Capital winning a board seat and several senior officials already forced out, Chatila may begin to feel the pressure from the board. A 95% share price drop is often enough of a bad mark for any CEO. That the company is also closing plants in Malaysia and Texas are just more red flags.

8. American Express (NYSE: AXP)
CEO: Kenneth Chenault
Year started: 2001
One year stock price change: -31.6%
Annual compensation: $22.8 million

Kenneth Chenault has been chairman and CEO of American Express (AXP) since 2001. It is worth noting that he has made some good decisions for the company in the past. The company’s stock price, however, has been on the decline in recent months. The company has spun off several units over the years, and for the most part, this has hurt AmEx. The stock closed 2015 at $69.55 — down 26% for the year, and analysts expect another decline in 2016. Among the events that have damaged Amex the most is the loss of its position as exclusive credit card for Costco. Amex also recently lost its branded card deal with Fidelity. Recently, AmEx announced a management reorganization with an unknown number of job cuts, as well as a $1 billion target in cost cuts over the next two years. The company’s problems are exacerbated by the fact that many retailers do not use AmEx. With the rise of Visa, Mastercard, PayPal, Apple Pay and a myriad of other forms of competition in card processing and card issuance, the time for a new transformational CEO for the digital age has arrived. With Chenault turning 65 this year, it is time to hand the baton over and let a new CEO move the company beyond its present problems.

9. Staples (NASDAQ: SPLS)
CEO: Ronald Sargent
Year started: 2002
One year stock price change: -45.3%
Annual compensation: $12.4 million

In a world moving fast beyond traditional offices, office retailers have been hurting. But Staples CEO Ronald Sargent’s proposed merger with Office Depot, rather than offer a lifeline to the beleaguered chain has become a burden and may set the company’s normal operations back indefinitely. To avoid being labeled a monopoly and earn government approval for the transaction, Staples may have to give up some of its critical operations. The cost of such a severe restructuring may well be too high for shareholders. It now seems that the right move would have been to acquire OfficeMax or Office Depot before those two merged in 2013, when the FTC and Department of Justice were less likely to intervene. Sargent has been CEO of Staples since 2002. He led the several billion dollar Corporate Express buyout in 2008. Sargent might opt to, or be forced to, remain chairman and allocate the CEO role to someone else. Whether Staples wins approval of the Office Depot deal or not, a lot of time and effort has been expended — and the risky work of integration has yet to begin.

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10. Bed Bath & Beyond (NASDAQ: BBBY)
CEO: Steven Temares
Year started: 2003
One year stock price change: -37.1%
Annual compensation: $19.1 million

Now that its growth has slowed, Bed Bath & Beyond (BBBY) needs help immediately. Steven Temares has been CEO since 2003. He seems to have the backing of the two co-chairmen and co-founders, Leonard Feinstein and Warren Eisenberg, and he may very well be protected from outside pressure. Bed, Bath & Beyond needs to thwart competition from Amazon, Wal-Mart and other in-store and online retailers. It needs to revitalize its brand and its store design, as margins continue to drop and sales have stalled. Temares has been part of the company’s leadership almost throughout its entire history as a public company. It seems logical and practical for Temares to stay on as a board member, but something big needs to happen here.

The post CEOs Who Have to Go in 2016 appeared first on 24/7 Wall St..

When it comes to searching for profits, hedge funds have a reputation for a pretty sharp nose. In the fourth quarter of 2015, the hedgies reduced their exposure to equities by 1.5% during the period. The top 50 hedge funds sold $4.6 billion in stock during the fourth quarter, with eight of 10 sectors selling off and only the tech and utilities sectors posting a gain.

The most heavily purchased stock in the quarter was Apple Inc. (NASDAQ: AAPL), as hedge funds added $2.2 billion in the company’s stock. That’s quite a contrast to the third quarter, when Apple was the second-most sold stock.

Other tech stocks with high buying interest included EMC Corp. (NYSE: EMC), Broadcom Corp. (NASDAQ: BRCM) and Xerox Corp. (NYSE: XRX).

The data were reported Monday by FactSet.

The most heavily sold shares during the quarter were financials, led by American Express Co. (NYSE: AXP) and Lloyds Banking Group PLC (NYSE: LYG), which saw hedge funds reduce positions by $826 million and $748 million, respectively. Overall hedge funds sold $4.6 billion financial stocks during the period.
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The consumer discretionary sector was the second most sold in the quarter, led by $3 billion in sales of media company stocks. Four media giants saw stock sales in excess of $400 million in the quarter: Comcast Corp. (NASDAQ: CMCSA), which alone saw sales of $1.3 billion; Time Warner Inc. (NYSE: TWX); Liberty Global PLC (NASDAQ: LBTYA); and CBS Corp. (NYSE: CBS).

Oddly, perhaps, the top holding of the 50 largest hedge funds is Time Warner Cable (NYSE: TWC), which is owned by 29 of the top funds. Its stock made up 1.5% of the aggregate top funds’ portfolio.

The post Top Q4 Equity Purchases and Sales of Top 50 Hedge Funds appeared first on 24/7 Wall St..

Xerox Corp. (NYSE: XRX) reported fourth-quarter results on January 29, but the big negative reaction did not come until last Monday. The company announced that it is going to split itself into two pieces, essentially wiping the slate back to 2009 when Xerox acquired business software and services business ACS. It was not a match made in heaven.

Activist investor Carl Icahn, who has been given three board seats, has made no secret of his displeasure with the way Xerox is managed and has been a driving force for the split of the two businesses. The announcement of the split caused Moody’s to drop Xerox’s investment-grade rating to just one notch above junk and put the company’s status under review until more information on the split becomes available.

In the meantime, analysts weighed in with some price target changes:

• Barclays maintained an Underweight rating but raised its price target from $9 to $10.
• BMO lowered its price target to $10.50 and maintained a Market Perform rating.
• Brean Capital has a Buy rating but lowered its price target from $12 to $11.
• Credit Suisse has a Neutral rating and raised its price target to $11 from $10.
• Goldman Sachs has a Neutral rating but raised its price target from $10 to $10.50.
• Morgan Stanley downgraded Xerox from Overweight to Equal Weight and lowered its target from $13.50 to $12.00.

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Xerox stock closed at $9.46 on Friday, up about 1% on the day, in a 52-week range of $8.48 to $14.02. The consensus price target on the stock is $11.82, but that target likely does not include all the recent changes.

The post Analysts Changing Stride on Xerox Into Breakup appeared first on 24/7 Wall St..

Stocks were indicated handily lower on Monday. Investors have seen so far in 2016 that rallies have been sold off, but for over four years, before January, every single market sell-off was met with investors buying the dips. 24/7 Wall St. reviews dozens of analyst reports each morning to find new investing and trading ideas for its readers. Some of these analyst reports are on stocks to buy, while others cover stocks to sell or avoid.

These are this Monday’s top analyst calls.

Chipotle Mexican Grill Inc. (NYSE: CMG) was raised to Neutral from Underperform with a $475 price objective (versus a $452.97 prior close) at Bank of America Merrill Lynch. Chipotle has a consensus target price of $479.52 and a 52-week trading range of $399.14 to $758.61.

Cisco Systems Inc. (NASDAQ: CSCO) was maintained as Outperform but the price target was cut to $30 from $32 at Oppenheimer. The firm expects that its January quarterly results should come in line with consensus, with potential downside to the low end of guidance, based on Cisco channel checks. Cisco closed at $23.79, has a consensus target price if $30.55 and has a 52-week range of $22.47 to $30.31.

Micron Technology Inc. (NASDAQ: MU) was raised to Neutral from Sell at Goldman Sachs, but the firm lowered its price target to $11 from $13 (versus an $11.03 close). The consensus target price is $18.18, and the 52-week range is$9.31 to $32.84.
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Seagate Technology PLC (NASDAQ: STX) was raised to Hold from Sell but the price target was cut to $32 from $35 at Benchmark. RBC Capital markets lowered its price target to $36 from $40. Seagate closed at $29.05 and it has a consensus target price of $36.47 and a 52-week range of $26.25 to $63.39.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) was raised to Buy from Hold at Jefferies, but the price target was lowered to $120 from $142 (versus a $90.75 close) in the call. The firm remains positive about the core CF business’s sales potential and operating leverage and thinks recent weakness in Vertex shares is an opportunity. The consensus analyst target is $140.25. The 52-week range is $81.98 to $143.45.

Walt Disney Co. (NYSE: DIS) was maintained as Hold at Jefferies, but the firm lowered its price target to $92 from $112 (versus a $95.82 close). Disney shares have a consensus analyst target of $112.38 and a 52-week range of $90.00 to $122.08.

Xerox Corp. (NYSE: XRX) was downgraded to Equal Weight from Overweight with a $12 price target (versus a $9.75 close) at Morgan Stanley. It has a consensus analyst target of $12.23 and a 52-week range of $8.48 to $14.02.

Follow @JonOgg on Twitter to receive the daily analyst calls in your Twitter feed each morning.

Other key analyst upgrades and downgrades this Monday were in shares of the following companies:

Eastman Chemical Co. (NYSE: EMN) was raised to Buy from Underperform with a $75 price target (versus a $61.21 close) at CLSA.

Extreme Networks Inc. (NASDAQ: EXTR) was raised to Buy from Hold with a $3.75 price target (versus a $2.76 close) at Needham.

Kennametal Inc. (NYSE: KMT) was raised to Neutral from Underperform with a $17 target (versus a $17.70 close) at Merrill Lynch.

Mondelez International Inc. (NASDAQ: MDLZ) was downgraded to Neutral from Positive with a $45 target (versus a $43.10 close) at Susquehanna.
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Newell Rubbermaid Inc. (NYSE: NWL) was raised to Outperform from Market Perform at Raymond James.

Ollie’s Bargain Outlet Holdings Inc. (NASDAQ: OLLI) was downgraded to Neutral from Outperform with a $20 price target (versus a $22.35 close) at Credit Suisse.

Restoration Hardware Holdings Inc. (NYSE: RH) was downgraded to Market Perform from Outperform at Cowen.

Tiffany & Co. (NYSE: TIF) was downgraded to Market Perform from Outperform at Cowen.

United States Steel Corp. (NYSE: X) was downgraded to Neutral from Outperform at Macquarie.

Werner Enterprises Inc. (NASDAQ: WERN) was raised to Strong Buy from Outperform with a $34 price target (versus a $24.15 close) at Raymond James.

If you missed Friday’s top analyst upgrades and downgrades, they included Alibaba, Amazon, Bank of America, Cypress Semiconductor, Flextronics, JC Penney, Lululemon Athletica, Microsoft and over a dozen more.

The post Top Analyst Upgrades and Downgrades: Chipotle, Cisco, Micron, Seagate, Vertex, Disney, Xerox and Many More appeared first on 24/7 Wall St..

A number of press reports claim that Xerox Corp. (NYSE: XRX) will be broken into two pieces, and that activist investor Carl Icahn, who has taken a significant position in the company’s shares, will receive several board seats. The action is the culmination of several years of falling sales and profits, as well as a collapsed share price, all under the management of CEO Ursula Burns. Appropriately, she may have no role in either of the new corporations at all.

Icahn’s plan apparently is to tear apart Burns’s signature decision. Xerox bought Affiliated Computer Services (ACS) in 2009 for $6.4 billion in cash and stock. Her theory was that Xerox needed to diversify beyond its copier and related hardware businesses. The addition of software and services would increase margins. But the deal never worked.

The ACS purchase pushed total Xerox revenue from $15.2 billion in 2009 to $22.6 billion in 2011. Net income rose from $485 million to $1.3 billion over the same period. By contrast, in the most recent trailing 12 months, Xerox revenue has been $18.4 billion. Net income has dropped to $391 million. These recent results have been so poor that Xerox shares have fallen 30% in the past year.

When Xerox announced results for its most recently reported quarter, revenue had dropped 10% to $4.3 billion. Net income dropped from a profit of $266 million to a loss of $34 million. Services revenue fell 8% to $2.3 billion and yielded a loss. The ACS buyout has dragged down the company’s numbers.

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Burns made her usual set of excuses when the numbers were announced:

During the third quarter, the company achieved adjusted earnings in line with our guidance. We continue to focus on strengthening our offering portfolio, improving productivity and targeting our highest-margin segments. We remain focused on serving our clients and leading in the most attractive market segments where we are best positioned to compete and differentiate.

Icahn seems not to believe this. Burns has been CEO since July 2009 and has made tens of millions of dollars. She may well be on her way out.

The post Xerox’s Horrible Management Finally Crushes the Company appeared first on 24/7 Wall St..

Carl Icahn increased the number of shares in Xerox Corp. (NYSE: XRX) that he holds, a decision he may regret. The market continues to pressure the copier company’s shares, as questions about its viability as an independent public corporation dog it. Xerox shares have dropped 31% in the past year.

The one-year slide represents skepticism about whether Xerox can be turned around, a process that management says has been ongoing for several quarters. CEO Ursula Burns has held her job since 2009. Critics claim she spends too much time away from management and participating in public forums. One of her recent comments reflects her view of how businesses should work:

As I’ve progressed in my career, I’ve come to appreciate — and really value — the other attributes that define a company’s success beyond the P&L: great leadership, long-term financial strength, ethical business practices, evolving business strategies, sound governance, powerful brands, values-based decision-making.

While no one would criticize Xerox’s ethics, Burns’s focus on long-term financial strength, governance, brand management and great leadership are another matter.

While Xerox’s profit and loss figures have deteriorated, so has the value of its brand. According to the Interbrand Best Global Brands analysis for 2015, the value of the Xerox brand dropped 9% to $6 billion, part of an ongoing decline in the rankings.
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The deepest concern about Xerox is that it cannot halt the decline in its earnings and revenue. Third-quarter revenue dropped 10% to $4.3 billion, compared to the same quarter a year ago. Net income swung from $266 million in the third quarter of 2014 to a loss of $34 million.

Worry about Xerox’s future has also translated into employee attitudes about their jobs and Burns’s stewardship. Recent data from Glassdoor show employees rate Xerox at 2.6, well below the average for all companies evaluated. Burns’s CEO rating is 37%, a dismal assessment.

The Xerox board has run low on options. Sell the company, probably in pieces, to give investors some return, or fire Burns and hope new management can do what she has not been able to do.

The post Xerox Shares Plunge 31% in a Year appeared first on 24/7 Wall St..

Stocks were indicated to open higher on Tuesday. Investors have bought stocks on pullbacks for four years now in a bull market that is nearing seven years old. 24/7 Wall St. reviews dozens of analyst reports each morning to find new investing and trading ideas for its readers. Some analyst reports cover stocks to buy, while other calls cover stocks to sell or to avoid. These are this Tuesday’s top analyst upgrades, downgrades and initiations.

AbbVie Inc. (NYSE: ABBV) was downgraded to Equal Weight from Overweight at Barclays. AbbVie has a consensus analyst price target of $75.21 and a 52-week trading range of $45.45 to $71.60.

Alcatel-Lucent S.A. (NYSE: ALU) was raised to Outperform from Neutral at Credit Suisse. Alcatel-Lucent American depositary shares (ADSs) closed at $3.93 and have a 52-week range of $3.06 to $4.96.

CDW Corp. (NASDAQ: CDW) was started with a Buy rating and was assigned a $52 price target (versus a $43.17 prior close) at Goldman Sachs. CDW has a consensus price target of $50.00 and a 52-week range of $32.57 to $46.92.

Computer Sciences Corp. (NYSE: CSC) was downgraded to Neutral from Buy and the price target was cut to $34 from $44 (versus a $31.33 close) at SunTrust Robinson Humphrey. CSC has a consensus target of $30.00 and a 52-week range of $24.77 to $31.96.

Eli Lilly and Co. (NYSE: LLY) was raised to Overweight from Equal Weight at Barclays, and the price target is $95.00 (versus an $82.04 close). Eli Lilly has a consensus price target of $97.53 and a 52-week range of $68.31 to $92.85.

ALSO READ: 6 Analyst Stock Picks With Massive Upside Targets

Ericsson (NASDAQ: ERIC) was downgraded to Underperform from Neutral at Credit Suisse. Ericsson’s ADSs closed at $9.69, with a consensus analyst target of $11.85 and a 52-week trading range of $9.06 to $13.14.

Gold Fields Inc. (NYSE: GFI) was downgraded to Sector Perform from Outperform RBC Capital Markets. The stock closed at $2.53, has a consensus analyst price target of $3.70 and has a 52-week range of $2.04 to $6.01.

JD.com Inc. (NASDAQ: JD) was reiterated as Buy with a $43.00 price target (versus a $30.68 close) at Jefferies. The firm met with its chief financial officer and thinks the fourth quarter is tracking well, with big financial and operational improvements in 2016. JD.com closed up 2.4% at $30.68 on Monday, against a consensus target price of $36.09 and in a 52-week range of $21.55 to $38.00.

Nokia Corp. (NYSE: NOK) was raised to Outperform from Neutral at Credit Suisse. Nokia closed at $7.21 and has a 52-week trading range of $5.71 to $8.37.

Rackspace Hosting, Inc. (NYSE: RAX) was raised to Outperform from Sector Perform and was given a $36.00 price target at RBC Capital Markets. Rackspace closed at $28.62. The consensus analyst price target is $39.00 and the 52-week range is $23.65 to $56.20.

TerraForm Power Inc. (NASDAQ: TERP) was raised to Outperform from Perform and was given a $10 price target (versus a $6.90 close) at Oppenheimer. TerraForm Power’s consensus price target is $23.94 and it has a 52-week range of $6.73 to $42.66.

ALSO READ: Huge PowerShares ETF Rebalance Means Massive Buying for 4 Biotech Stocks

Other key analyst upgrades, downgrades and initiations were seen in the following on Tuesday:

ABB Ltd. (NYSE: ABB) was started as Sell at Citigroup.

Aduro BioTech Inc. (NASDAQ: ADRO) was downgraded to Perform from Outperform at Oppenheimer.

CBOE Holding Inc. (NASDAQ: CBOE) was downgraded to Market Perform from Outperform at Raymond James.

Chimerix Inc. (NASDAQ: CMRX) was started as Neutral with a $50.00 fair value estimate (versus a $41.92 close) at Janney Capital Markets.

Conn’s Inc. (NASDAQ: CONN) was raised to Buy from Hold with a $35 price target (versus a $26.67 close) at Stifel.

Fidelity National Information Services Inc. (NYSE: FIS) was started as Neutral with a $70.00 price target (versus a $63.67 close) at Goldman Sachs.

Joy Global Inc. (NYSE: JOY) was downgraded to Underperform from Neutral and the price objective was slashed to $10 from $21 (versus a $15.35 close) at Bank of America Merrill Lynch.

Keysight Technologies Inc. (NYSE: KEYS) was started as Hold with a $30.00 price target (versus a $30.81 close) at Deutsche Bank.

Leucadia National Corp. (NYSE: LUK) was started with an Outperform rating and was given a $27 price target (versus a $17.68 close) at Oppenheimer.

Newmont Mining Corp. (NYSE: NEM) was downgraded to Neutral from Buy at Citigroup.

ALSO READ: Jefferies Has 4 Blue Chip High-Dividend Franchise Picks to Buy Now

Rexx Energy Corp. (NASDAQ: REXX) was downgraded to Sell from Hold and was given a $0.75 price target (versus a $1.37 close) at Stifel.

TG Therapeutics Inc. (NASDAQ: TGTX) was started as Outperform with a $29.00 price target (versus a $13.18 close) at FBR Capital Markets.

uniQure N.V. (NASDAQ: QURE) was started as Buy and was given a $40.00 fair value estimate (versus a $21.57 close) at Janney Capital Markets.

Xerox Corp. (NYSE: XRX) was started with a Neutral rating and was assigned a $10 price target (versus a $10.55 close) at Goldman Sachs.

Zendesk Inc. (NYSE: ZEN) was reiterated as Buy at Canaccord Genuity and it was still called a top small cap growth pick. That being said, its shares have risen from about $19 to $25 in a few weeks, and they feel the stock needs a pause to catch its breath through year-end.

In case you missed Monday’s top analyst upgrades and downgrades, they were in shares of Fitbit, General Electric, Lockheed Martin, Lululemon Athletica, Marriott International, Microsoft, Philip Morris, SLM and over a dozen more companies.

The post Top Analyst Upgrades and Downgrades: AbbVie, CDW, CSC, Eli Lilly, Ericsson, Gold Fields, JD.com, Nokia, Rackspace and Many More appeared first on 24/7 Wall St..

October 29, 2015: Here are four stocks trading with heavy volume among 79 equities making new 52-week lows today.

GoPro Inc. (NASDAQ: GPRO) dropped about 17% on Thursday to post a new 52-week low of $24.95 against a high of $87.50. The stock closed at $30.21 on Wednesday night. Volume was more than 4 times the daily average of around 9.7 million shares traded. The company had posted weak results and lowered its outlook.

GNC Holdings Inc. (NYSE: GNC) posted a new low on Thursday. Shares dropped about 27% to a low of $26.34 from Wednesday’s closing price of $38.64. The stock’s 52-week high is $51.69. Volume was about 17 times the daily average of around 1.6 million. The company reported weak results this morning and trimmed guidance.

La Quinta Holdings Inc. (NYSE: LQ) dropped about 19% on Thursday to post a new 52-week low of $13.32 against a 52-week high of $24.94. The stock closed at $16.50 on Wednesday night. Volume was about 6 times the daily average of around 1.8 million shares traded. The company posted mixed results late Wednesday and analysts at Credit Suisse cut the rating from Outperform to Neutral and lowered their price target.

Xerox Corp. (NYSE: XRX) dropped around 2% on Thursday to post a new 52-week low at $9.17 after closing at $9.36 on Wednesday. The stock’s 52-week high is $14.36. Share volume was more 40% below the daily average of around 13 million. The company posted a loss on Tuesday and the bleeding has slowed but not stopped.

ALSO READ: 10 Most Profitable Companies in the World

The post The 52-Week Low Club for Thursday appeared first on 24/7 Wall St..

October 27, 2015: Here are four stocks trading with heavy volume among 175 equities making new 52-week lows today.

Marvell Technology Group Ltd. (NASDAQ: MRVL) dropped about 20% on Tuesday to post a new 52-week low of $7.55 against a high of $16.78. The stock closed at $9.45 on Monday night. Volume was nearly 6 times the daily average of around 8 million shares traded. The chipmaker’s accounting firm resigned today.

GrubHub Inc. (NYSE: GRUB) posted a new low on Tuesday. Shares dropped nearly 30% to a low of $22.49 from Monday’s closing price of $32.09. The stock’s 52-week high is $47.95. Volume was about 13 times the daily average of around 2.5 million. The company posted weak earnings and offered weak guidance this morning.

Xerox Corp. (NYSE: XRX) dropped about 8.3% on Tuesday to post a new 52-week low of $9.20 against a 52-week high of $14.36. The stock closed at $10.03 on Monday night. Volume was more than double the daily average of around 12.8 million shares traded. The venerable technology company reported weak results on Monday.

CONSOL Energy Inc. (NYSE: CNX) dropped around 22% on Tuesday to post a new 52-week low at $6.96 after closing at $8.86 on Monday. The stock’s 52-week high is $42.26. Share volume was more than triple the daily average of around 7.3 million. The coal and natural gas provider posted weak results this morning.

ALSO READ: 10 Most Profitable Companies in the World

The post The 52-Week Low Club for Tuesday appeared first on 24/7 Wall St..

Xerox Corp. (NYSE: XRX) reported third-quarter 2015 results before markets opened Monday. The business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.24 on revenues of $4.33 billion. In the same period a year ago, the company reported EPS of $0.26 on revenues of $4.8 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.23 and $4.54 billion in revenues.

The company also announced that its board has authorized a review of the company’s business portfolio and capital allocation options, with the goal of enhancing shareholder value.

On a GAAP basis, Xerox posted a net loss of $0.04 per share, which includes a charge of $0.05 related to amortization of intangibles and a charge of $0.23 related to a decision not to complete certain projects in the company’s Health Enterprise Medicaid platform.

In the third quarter of 2015, Xerox said revenue in its Services business fell 8% to $2.4 billion (down 4% in constant currency), and service margins were negative 7.6%.

Revenue in the Document Technology business came in at $1.8 billion, down 12% (down 9% in constant currency). Margin fell 1.2% to 12.8%.

The company’s CEO said:

Although we already have taken steps to accelerate cost reductions and prioritize investments to drive improved productivity and higher margins, our Board determined that undertaking a comprehensive review of structural options for the company’s portfolio is the right decision at this time. … During the third quarter, the company achieved adjusted earnings in line with our guidance. We continue to focus on strengthening our offering portfolio, improving productivity and targeting our highest-margin segments.

Xerox expects fourth-quarter 2015 GAAP earnings of $0.23 to $0.25 per share and adjusted EPS of $0.28 to $0.30 per share. The consensus estimate calls for adjusted EPS of $0.29 on revenue of $4.54 billion.

For full-year 2015, Xerox expects GAAP earnings at the low end of $0.46 to $0.52 per share and adjusted EPS at the low end of $0.95 to $1.01 per share.

Xerox also expects full-year 2015 cash flow from operations of $1.6 billion to $1.7 billion and free cash flow from operations of $1.3 billion to $1.4 billion.

Xerox shares closed at $10.34 on Friday, up about 0.5% for the day and were inactive early Monday morning. The stock’s 52-week range is $9.45 to $14.36. Thomson Reuters had a consensus analyst price target of around $12.59 before the report.

ALSO READ: The 10 Most Profitable Companies in the World

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There is a school of thought that the financial performance of Xerox Corp. (NYSE: XRX) cannot get worse than it has been so far under CEO Ursula Burns. She has held the job since 2009. However, Xerox management reported Tuesday that the company would lose money in the third quarter, another extraordinary milestone as the copier corporation continues to fall apart.

The Xerox collapse is not new. Over the past five years, the company’s shares have dropped 8%, against a 70% rally of the S&P 500. All along the way, Burns has promised a turnaround, making the attempt one of the longer ones in U.S. corporate history.

The announcement:

Xerox (XRX) today provided an update regarding the strategic direction of its government healthcare business, specifically addressing the implementation of its Health Enterprise Medicaid platform in California and Montana.

“Today’s announcement builds on the change in strategy from last quarter,” said Ursula Burns, Xerox chairman and chief executive officer. “We are taking additional steps to improve our financial performance and significantly reduce the volatility of our results going forward.”

Late in the third quarter, discussions took place with clients in California and Montana regarding the status and scope of current Health Enterprise platform projects, which evolved to include options to not fully complete the projects. Based on those discussions, Xerox believes it is probable that it will not fully complete the implementation of the platform in these states. Xerox expects to continue to process Medicaid claims using the existing legacy systems, thus providing uninterrupted service for the states’ healthcare providers and constituents.

Xerox remains committed to the implementation and ongoing operation of the Health Enterprise platform for its other state clients. In addition, the company will continue to provide other innovative government healthcare solutions to the 35 states and their citizens whom it serves. Xerox has a diverse portfolio of healthcare solutions and will focus on the more profitable market segments from which it derives over two thirds of its current government healthcare revenues.

As a result of these developments, Xerox is recording a pre-tax charge of approximately $385 million (approximately $240 million after-tax or 22 cents per share) in its third-quarter 2015 results reflecting estimated settlement costs and other impacts from these changes. The charge reflects approximately $130 million for the write-off of receivables and other related assets as well as approximately $30 million of non-cash impairment charges, with the remainder of the charge expected to be cash outflows in future quarters.

Xerox now expects a third-quarter 2015 GAAP loss from continuing operations of 3 to 5 cents per share. Adjusted earnings per share, excluding this charge, is expected to be in line with our guidance of 22 to 24 cents

That “strategy” must be to lose more money.

ALSO READ: 8 Fresh Analyst Stock Picks With 50% to 100% Upside

The post Xerox Gets Uglier, Will Lose Money in Q3 appeared first on 24/7 Wall St..

Apple Inc. (NASDAQ: AAPL) was named the most valuable global brand in the 2015 Interbrand World’s Best 100 Global Brand survey, with a value of $170 billion, up 43%. Google Inc. (NASDAQ: GOOGL) was second at $128 billion, up 12%. The fact that a brand as valuable as Apple could rise so far is a testament to the growth of the iPhone and Apple’s growing domination of the smartphone industry.

Third on the list was Coca-Cola Co. (NYSE: KO) at $78 billion, probably due to the falling popularity of sugary drinks. Its value dropped 4%. A resurgent Microsoft Corp. (NASDAQ: MSFT) moved it higher by 11% to $67 billion. The value of deeply troubled International Business Machine Corp.’s (NYSE: IBM) brand fell 10% to $65 billion. It has contended with losses, dropping revenue and an erosion of relevance in the tech world. Next on the list was Toyota Motor Corp. (NYSE: TM), with a value of $49 billion, up 16%, followed by Samsung at $45 billion. Its value was flat, perhaps due to the market share it has lost to Apple in the smartphone industry.

General Electric Co. (NYSE: GE) was next at $43 billion, down 7%. Its long-promised turnaround has never materialized as its juggles it divisions in an attempt to attract Wall Street’s positive attention. It was followed on the list by fading fast-food chain McDonald’s Corp. (NYSE: MCD) at $38 billion, down 6%. The fast-food chain continues to post negative same-store sales. Last in the top 10 was Amazon.com Inc. (NASDAQ: AMZN), the remarkably successful e-commerce company that now has a dominant position in streaming media and cloud services. Its value rose 29% to $37 billion.

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Other notables on the list include Volkswagen, at 35th, down 9% to $13 billion. The value of the brand will drop hugely next year, due to a cheating scandal. Several car brands already sit ahead of it, with BMW in the 11th spot at $37 billion, up 9%. Mercedes was 12th with a value of $36 billion, up 7%. Although the two luxury brands have much smaller revenue than car companies with broader collections of auto and trucks, BMW and Mercedes have revenue sizes larger than companies with more unit sales, and the two company’s profits prove the value of exclusive brands when it comes to margins. Among other car companies with brand values that were high Honda Motor Co. Ltd. (NYSE: HMC), with a brand value of $23 billion, up 6%.

Among the brands with the largest percentage increases, Facebook Inc.’s (NASDAQ: FB) brand value rose 55% to $22 billion, and Hermes rose 22% to $10 billion.

Among the brands that had the biggest losses in value, Gucci dropped 9% to $9 billion. Thomson Reuters Corp. (NYSE: TRI) dropped 12% to $7 billion, and Xerox Corp. (NYSE: XRX) dropped 9% to $6 billion. The copier company has been plagued by falling sales and losses. It has been unable to find its way up from the low end of the tech industry. The value of Caterpillar Inc. (NYSE: CAT) dropped 9% to %6 billion. Its sales have fallen due primarily to declining demand for its large commercial vehicles.

Based on their sales and position within their industries, the Interbrand 2015 World Best Brands matches how well the brands have done within the past year or two.

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Methodology:

Interbrand’s brand valuation methodology seeks to provide a rich and insightful analysis of your brand, providing a clear picture of how your brand is contributing to business results today, together with a road map of activities to ensure that it is delivering even more tomorrow.

The brand valuation model also provides a framework within which one-off business case modeling can be conducted to evaluate brand strategy options-such as positioning, architecture, and extension-and make the business case for brand change.

Finally, when Interbrand conducts valuations for financial reasons, we provide strategic branding recommendations, in addition to delivering a rigorously analyzed and defendable valuation number. This delivers value to the business–beyond the knowledge of the valuation amount.

The post Apple Named Top Corporate Brand With $170 Billion Value appeared first on 24/7 Wall St..

Xerox Corp. (NYSE: XRX) has decided to waste several million dollars on a marketing campaign about what the company can do for business customers. The title for the campaign is “Work Can Work Better.” However, many past and potential customers already have decided that Xerox does not and will not offer a better way for them to work — at least based on Xerox’s revenue and net income results.

The products Xerox makes and markets are not part of the rapidly advancing world of clouds and complex, but not hard to use, software. Since marketing will not change perceptions of Xerox, the advertising will do nothing for shareholders either. Many of them decided long ago that the value of Xerox does not work at all. The collapse of the market earlier in the week did not hurt Xerox shareholders much. The stock price already had dropped by 25% this year.

This is what Xerox has to say in it new ads about its ability to help people who work:

Remember when people said technology would make life easier? That it would do the hard work for you so you could enjoy more ‘you time’? We remember that.

Now try and think of a week when you didn’t see a colleague eat lunch at their desk. Or a weekend when you weren’t distracted by emails pinging on your phone? Exactly.

Technology was supposed to work for us, but more often than not it feels like we work for it.

What went wrong? And how do we fix it? How do we make work work better?

ALSO READ: The Worst Companies to Work For

Most of Xerox’s product lines are based on ancient ways of working. Xerox is in the document management business. It also has a division that makes and markets copiers, which has been part of the company since it was modern technology decades ago. These products are still a part now that the technology is old and, to many companies, useless. As a matter of fact, Xerox even sells copier toner — which makes life easier.

The best way to look at Xerox’s future is whether the past has anything to do with it. For a fairly long time, the past has been terrible.

In the most recently reported quarter, Xerox revenue dropped 7% to $4.6 billion. Net income dropped 95% to $12 million. Xerox did post some impairments. The first quarter was just as bad, but net income only dropped 20% to $225 million. The numbers were helped because there was no impairment. Last year, revenue dropped 2% to $19.5 billion, and net income by 16% to $969 million. Xerox is slowly disappearing.

When will Xerox be able to say “Work Can Work Better” at its own company? Ursula Burns has been chief executive officer since 2009. Five of the eight independent board members’ tenures predate that. Share ownership among them is at pitiful levels.

(By the way, one of the first of the new ads features the U.S. Open. Look for Burns and her board sitting in the best seats in the stands.)

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Xerox Corp. (NYSE: XRX) reported second-quarter 2015 results before markets opened Friday. The business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.22 on revenues of $4.59 billion. In the same period a year ago, the company reported EPS of $0.25 on revenues of $4.94 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.22 and $4.64 billion in revenues.

On a GAAP basis, EPS totaled $0.09, including restructuring and asset impairment charges of $157 million, or about $0.15 per share. Xerox expects a per-share restructuring charge of about $0.01 in the third quarter.

In the second quarter of 2015, Xerox said revenue in its Services business fell 3% to $2.57 billion (up 1% in constant currency), but margin fell 1% to 7.5%, primarily due to the anticipated run-off of the company’s student loan business and its Texas Medicaid contract, which combined for a negative impact of 2.4% on the Services segment’s quarterly revenues.

Revenue in the Document Technology business came in at $1.88 billion, down 12% (down 7% in constant currency). Margin fell 2.3% to 12.1% due to unfavorable revenue mix, price declines and an anticipated increase in pension expense, partially offset by the retiree health curtailment gain and restructuring and productivity benefits.

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The company’s CEO said:

We delivered adjusted earnings in line with our guidance, met our Services and Document Technology margin expectations and delivered solid operating cash flow of $349 million in the quarter. We are intensely focused on improving our Services margin and are implementing restructuring actions and prioritizing investments to accelerate benefits from our new operating model.

Xerox lowered its full-year revenue guidance from a prior estimate of flat to a new estimate of down approximately 1% in constant dollars. Foreign exchange effects will cost the company 4%, the top end of the prior range. Services margins are now forecast in a range of 8.5% to 9%, down from the prior guidance of 9% to 10%. Full-year adjusted EPS is now expected to total between $0.95 and $1.01, down from a prior range of $1.00 to $1.06.

For the third quarter, Xerox expects GAAP earnings of $0.17 to $0.19 per share and adjusted EPS of $0.22 to $0.24 per share. The consensus estimates call for adjusted EPS of $0.25 on revenues of $4.58 billion.

For the full year, Xerox guided GAAP earnings per share of $0.69 to $0.75 and adjusted EPS at $0.95 to $1.01. Consensus estimates call for EPS of $0.98 and revenues of $18.56 billion.

Xerox is adjusting its capital allocation plans as well, increasing share buybacks by $300 million and reducing acquisitions.

Xerox shares traded down about 0.7% in Friday’s premarket, at $10.73 in a 52-week range of $10.24 to $14.36. Thomson Reuters had a consensus analyst price target of around $13.50 before the report.

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Xerox Corp. (NYSE: XRX) announced Friday morning that the company will stop throwing good money after bad and discontinue investing in one of its health care programs and concentrate more effort on its existing software. The charge will total approximately $145 million (or $0.09 a share after tax) and will result in second-quarter earnings of $0.09 to $0.11 per share.

Analysts were forecasting earnings of $0.22 per share, and the company’s own guidance called for earnings in a range of $0.21 to $0.23 per share. Ursula Burns, the company’s CEO, said:

We continue to refine our strategy and take the necessary actions to position our Services business for better revenue growth and margin improvement. These changes to our Health Enterprise platform strategy will enable us to improve execution. We will continue to offer and deliver a broad array of other government healthcare solutions and services to existing and future clients.

Translation: We’ve spent too much money on a business that offers too little return and now we’re going to stop.

In the first quarter of this year, the company’s Health Enterprise platform took most of the blame for a 1.1% drop in the Services division margin. Revenues in the Services division were down 3% as well.

Shares of Xerox traded up about 0.4% to $10.65 in the late morning Friday, in a 52-week range of $10.24 to $14.36. The consensus price target on the shares is $13.52.

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July 8, 2015: Here are four stocks among the 258 equities making new 52-week lows today.

Alcoa Inc. (NYSE: AA) posted a new 52-week low on Wednesday. Shares dropped about 5.4% to a low of $10.46 from Tuesday’s closing price of $11.06. The stock’s 52-week high is $17.75. Volume totaled more than 27 million shares, about 33% higher than the stock’s daily average of around 20 million. The company reports earnings after markets close today, and expectations are low.

Advanced Materials Inc. (NASDAQ: AMAT) dropped about 3.3% on Wednesday to post a new 52-week low at $18.54 after closing at $19.17 on Tuesday. The stock’s 52-week high is $25.71. Share volume totaled more than 13 million, about 30% below the daily average of around 22 million shares traded. Weakness in the semiconductor market spells weakness for the makers of equipment to manufacture semiconductors.

Advanced Micro Devices Inc. (NASDAQ: AMD) dropped about 3.8% on Wednesday to post a new 52-week low of $2.01 after closing at $2.09 on Tuesday. The stock’s 52-week high is $4.80. Share volume totaled more than 11 million shares, about 30% below the daily average of around 16 million. The company cut guidance yesterday and dropped about 18%. Today’s loss is an extension of that sad tale.

Xerox Corp. (NYSE: XRX) dropped about 2.8% on Wednesday to post a new 52-week low of $10.28 against a 52-week high of $14.36. The stock closed at $10.58 on Tuesday night. Volume totaled around 9 million shares, about 10% below the daily average of around 10 million. The company had no news today.

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Xerox Corp. (NYSE: XRX) just came in as the fifth worst company to work for in America, as analyzed with results from Glassdoor by 24/7 Wall St. With net earnings continually dropping, approval rating at only 32% for CEO Ursula Burns, and employees complaining of favoritism over work ethic, it is an accurate reflection of the stock’s abysmal performance, especially since the beginning of the year, now skirting 52-week lows.

But it is not just Xerox that is struggling these days in business support services. In fact, its competitors aren’t doing any better. Something is wrong with the whole industry.

If we take a look at Xerox along with three of its main competitors, Canon Inc. (NYSE: CAJ), Hewlett-Packard Co. (NYSE: HPQ) and Accenture PLC (NYSE: ACN), we see that Xerox is actually not the worst of the lot. Look at a five-year chart and Xerox looks stellar compared to Canon and HP. It was even competing decently with Accenture until the beginning of 2015, when the two diverged.

Looking at earnings over the past two quarters, when Xerox began its most recent hard decline, earnings were down 20% year over year last quarter and down 50% in the fourth quarter of 2014. Accenture’s earnings were only down 3.6% in the most recent report, but up 2.8% year over year in the previous quarter. The difference between Accenture and Xerox then is that Accenture is treading water while Xerox is sinking. The reason Accenture shares have been rising is due to buybacks, which the company engages in religiously.

ALSO READ: The Worst Companies to Work For

As for Canon, earnings have not gone anywhere for years. HP’s have shrunk significantly since 2010 and have not recovered.

If we look at it from a labor perspective (Xerox should be pretty bad considering it is the fifth worst company to work for), we do see that the company does have low expenses per employee. Annualizing results from last quarter, Xerox pays about $7,100 per employee per quarter, and squeezes out about $5 in revenue for every dollar spent on labor (including general expenses). Accenture, surprisingly, spends even less per employee per quarter at about $4,100, earning about $5.56 per dollar spent on labor.

Canon spends the most at close to $13,000 per employee per quarter, earning only $3.13 per labor dollar, much worse than either Xerox or Accenture. HP rather surprisingly is not doing that badly with its labor efficiency, managing to make about $7.60 in revenue per labor dollar. The problem with HP is simply its shrinking business rather than efficiency problems.

As disappointing as Xerox has been then, it is not doing any worse than Canon or HP. And Accenture, while it has not pulled away earnings-wise by any means, is the cleanest dirty shirt simply because it has tread water over the past two quarters while Xerox has been hammered. The entire industry is simply stagnant, with yet another piece of evidence confirming this just two days ago.

Namely, Xerox just completed the sale of its Information Technology Outsourcing business to Atos, pocketing $850 million after taxes. And what did it say it will do with this money? More buybacks. You have to keep up with the Joneses, or the Accentures, or whatever the case may be.

ALSO READ: 3 Tech Hardware Stocks to Buy With Huge Potential Upside

The post Xerox Is Not the Problem, the Whole IT Services Industry Is appeared first on 24/7 Wall St..

 These days, employees can easily share their work experiences online, and employee opinions about companies and managers are all readily available to prospective workers and customers alike. As a result, companies face new risks to their reputations. A company known for its poor work environment and treatment of employees may find the poor image can also curb its reputation with customers, hinder its ability to attract new workers, and even hurt its financial performance.

For the fourth consecutive year, 24/7 Wall St. has identified the nation’s worst companies to work for. 24/7 Wall St. analyzed thousands of employee reviews from jobs and career website Glassdoor, which has compiled data on more than 400,000 companies around the world. The worst company ratings ranged from 2.3 to 2.7 out of 5, significantly lower than the 3.2 average company rating on Glassdoor. These are the 12 U.S. companies with the lowest employee ratings.

Click here to see the worst companies to work for.

Click here to see the best companies to work for.

According to Scott Dobroski, community expert at Glassdoor, the features of a great company to work for are relatively easy to identify. Employees who receive a clearly communicated vision from the company’s leaders, who have opportunities for advancement, and whose work has an impact on the company’s bottom line, are far more likely to rate their employer favorably. “A lower rated company on Glassdoor is exactly the opposite of that typically,” Dobroski said.

Employees at a majority of the 12 companies interact with customers on a daily basis. In such companies, employee dissatisfaction can have a direct effect on a the bottom line. Dobroski said there is a strong correlation between employee satisfaction and productivity. In customer facing service jobs, however, dissatisfaction will impact both productivity and customer satisfaction.

One of the most frequent employee complaints was a lack of work-life balance. While working long hours can be miserable, be a characteristic of a miserable job, it can also be a sign of employee satisfaction. If employees “actually like what they’re doing, they’re motivated to work harder and sometimes put in those additional hours, and so that translates into tangible results,” Dobroski said.

Pay is also partially a factor. According to a report from Glassdoor, just 10% of Glassdoor users who reported annual wages higher than $120,000 gave their employers a rating of 1 out of 5 versus 15% of employees earning less than $30,000 annually. However, controlling for a range of other factors, the report found money does not have a very large impact on satisfaction. An employee’s experience with a company’s culture and values are far more important.

In addition, while wages tend to go up over the course of one’s career, more experience at a job is associated with lower employee satisfaction. Glassdoor.com’s research suggested this could be due to the relatively long amount of time necessary to fully learn about a work environment. Or it could be that more experienced workers perhaps become jaded over longer periods of time.

To identify the 12 worst companies to work for, 24/7 Wall St. independently examined employee reviews on Glassdoor — this is not a Glassdoor.com commissioned report. To be considered, a company needed to have a minimum of 1,000 reviews, be currently operating and based in the United States. Employee counts are from the most recent financial documents for each company. For subsidiaries, head counts for the parent company were used.

These are the 12 worst companies to work for.

12. CVS Health (NYSE: CVS)
> Rating: 2.7
> Number of reviews: 4,700
> CEO approval rating: 40%
> Employees: 137,800
> Industry: Drug Retailers

Of the roughly 4,700 reviews posted about the company on Glassdoor, drugstore CVS Health received an average rating of 2.7 out of 5, making it one of the worst employee-reviewed companies in the United States. Employees who submitted reviews commonly complained about stores being understaffed, with managers having unreasonable expectations, and a difficulty in getting tasks done in the time allotted. Employees were likely to be dissatisfied not only with their working conditions, but also with the decisions of the company’s top management. Only 40% approved of the company’s current CEO, Larry Merlo.

While CVS Health employees are less than satisfied with the company and its management, stockholders are likely much happier with management. CVS shares rose roughly 10% so far in 2015. The company also reported earnings growth in each of the past three years.

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11. Computer Sciences Corporation (NYSE: CSC)
> Rating: 2.7
> Number of reviews: 3,500
> CEO approval rating: 37%
> Employees: 70,000
> Industry: IT Services & Consulting

Global information technology company Computer Sciences Corporation (CSC), based in Virginia, employed around 70,000 people worldwide as of April this year. Revenues have fallen each year since the company’s fiscal 2011. In its most recent fiscal year, CSC reported revenues of $12.2 billion, much lower than the $14.5 billion in revenue it reported in 2011. Earlier this month, the company agreed to pay $190 million to settle fraud charges with the Securities and Exchange Commission. In addition, numerous current and former executives were required to pay large fines.

CSC employees are on the whole relatively dissatisfied, according to employee reviews. “The work-life balance is a joke” was among the most frequent negative reviews on Glassdoor. Another common complaint from current and former employees was the high turnover rate even among management positions. In addition, CEO Mike Lawrie had an approval rating of just 37%.

10. Dollar General (NYSE: DG)
> Rating: 2.7
> Number of reviews: 1,600
> CEO approval rating: 85%
> Employees: 105,500
> Industry: Discount Stores

Discount retailer Dollar General received an average rating of 2.7 out of 5 on Glassdoor. Just 41% of the current and former employees who submitted reviews said they would recommend working at the company to their friends.

Complaints about working for Dollar General were in line with many of the other low-skill, client-facing jobs at companies on our list. The most common complaints included long hours, low pay, and poor management. However, feelings about corporate management may soon improve at the company. Earlier this month, Todd Vasos was named the company’s new CEO. he has not been in the role long enough to have a significant impact on the company, but preliminary reviews at Glassdoor have been positive so far.

9. Ross Stores (NASDAQ: ROST)
> Rating: 2.7
> Number of reviews: 1,400
> CEO approval rating: 67%
> Employees: 71,400
> Industry: Apparel & Accessories Retailers

As of May 2, 2015, Ross Stores had 1,242 locations in 33 states, the District of Columbia and Guam. According to the company’s website, Ross Stores makes it an “everyday priority” to treat its associates with respect. However, on Glassdoor, many employees told a very different story. Several workers complained about their extremely low salaries — Ross Stores often pays their employees the lowest amount allowed under the law. One former employee reported being “overworked and underpaid,” at times feeling like “an indentured servant.” This despite the fact that the company’s annual profits have gone from $786.8 million in fiscal 2012 to $924.7 million in fiscal 2012.

8. DISH Network (NASDAQ: DISH)
> Rating: 2.6
> Number of reviews: 2,200
> CEO approval rating: 30%
> Employees: 19,000
> Industry: Cable Service Providers

Network service providers do not have the best of reputations for their service, and at least one — DISH Network — does not appear to be treating its employees much better than it treats its customers. Of the roughly 2,200 reviews by former and current employees posted on Glassdoor, DISH Network scored an average of 2.6 out of 5, making it one of the worst reviewed large companies in the United States. One of the most common complaints was that upper management was out of touch with the technicians and customer service representatives. Multiple employees reported that the central dispatch would prescribe routes that were unrealistic. Employees also complained about being forced to wear heavy black uniforms in the summertime.

DISH’s overall rating may improve soon as the company is in talks to potentially merge with mobile service provider T-Mobile, which scored an average of 3.8, making it one of the best reviewed large companies on Glassdoor.

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7. AECOM (NYSE: AECOM)
> Rating: 2.6
> Number of reviews: 1,100
> CEO approval rating: 47%
> Employees: 95,000
> Industry: Construction & Engineering

AECOM provides project management, consulting, and architectural and engineering design services to both of government and corporate clients. Growing from a company of about 20,000 employees in 2005 to its current size of nearly 100,000, many employees complained that the company has become a bloated bureaucracy. The company, many reviewers criticized, is now run by accountants, and not managers that understand their employees. AECOM’s current CEO Michael Burke has a degree in accounting and used to serve as the company’s CFO. Under Burke’s leadership, many survey respondents felt that the company’s only interest has been its stockholders and its bottom line, and not employee satisfaction. The company’s stock has outperformed the Dow Jones Industrial Average so far this year.

6. Sears (NASDAQ: SHLD)
> Rating: 2.5
> Number of reviews: 5,300
> CEO approval rating: 21%
> Employees: 196,000
> Industry: Retail – Department Stores

Sears received an average rating of just 2.5 stars out of 5 from more than 5,000 employees surveyed on Glassdoor. Dissatisfaction with senior management was a common complaint among employees, with 1 star out of 5 being the most common rating. Of those who disapproved of the company’s management, many complained of a disconnect between upper management and store staff. One reviewer’s opinion was that the company’s approach was outdated and in need of a “global restructure and culture change.” Only 21% of employees surveyed approved of the CEO Edward Lampert.

The company’s stock price suggests investors also lack confidence in senior management. Sears Holdings Corp (NASDAQ: SHLD) shares have plummeted more than 30 since the beginning of June. Sears reported a net loss of more than $1 billion in each of the last three years.

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5. Xerox (NYSE: XRX)
> Rating: 2.5
> Number of reviews: 2,500
> CEO approval rating: 32%
> Employees: 145,600
> Industry: Business Support Services

Having worked her way up in the company for decades, Ursula Burns was named CEO of Xerox in 2009. However, under Burns’ leadership, the company’s earnings have declined from more than $1.3 billion in 2011 to $992 million in 2014, a 25% drop. These figures support recurring employee complaints about leadership — only 32% of surveyed employees approved of Burns.

Many employees also complained about a culture of favoritism in the company, saying that personal relationships are more important than work ethic when it comes to promotions and raises. Another recurring complaint was related to compensation. Employees cited low pay and years without cost of living raises as reasons for the company’s high turnover. Less than a third of Xerox employees would recommend a job at the company to a friend.

4. Forever 21
> Rating: 2.5
> Number of reviews: 2,000
> CEO approval rating: 29%
> Employees: 35,000
> Industry: Retail

Of the roughly 2,000 employees who reviewed budget clothing retailer Forever 21, only 28% said they would recommend working at the company to a friend. The average score for employee experience was just 2.5 out of 5. Some employees said they enjoyed the fun workplace environment and also appreciated the employee discount they received. But many followed up by adding that the perks simply were not enough to make up for the poor compensation and long hours. One reviewer stated, “This company is known for not treating their employees well. Whether you’re a sales associate or have a full time management position, expect to be overworked and underpaid.” According to Glassdoor’s list of salaries, sales associates earn just $8.99 per hour.

3. Kmart (NASDAQ: SHLD)
> Rating: 2.5
> Number of reviews: 1,900
> CEO approval rating: 19%
> Employees: 196,000
> Industry: Retail – Variety Stores

It is not a good sign when two subsidiaries of a company make the list of the worst companies to work for. Like Sears, Kmart is also owned and managed by Sears Holding Corporation since the companies merged in 2004. Kmart scored just as badly as Sears, with roughly 1,900 reviewers awarding it a score of just 2.5. Less than 1 in 5 Kmart employees approved of their corporate leader, CEO Eddie Lampert. Common complaints store employees made included disorganized management, old equipment, hot or otherwise unpleasant working conditions, and most frequently, low pay. One cashier said, “I make minimum wage, which is fine for a summer job but I know there are places that pay more for the same amount of work i’m doing.” According to Glassdoor, the average cashier at Kmart earns just $8.13 per hour.

2. Dillard’s (NYSE: DDS)
> Rating: 2.4
> Number of reviews: 1,500
> CEO approval rating: 30%
> Employees: 21,600
> Industry: Retail – Department Stores

Dillard’s is currently the second worst company and the worst department store in the country to work for. Founded by William Dillard in 1938, the company now operates close to 300 locations across 29 states. The department store chain is still managed by the Dillard family with William Dillard II as CEO, Alex Dillard as president, and William Dillard III as vice president.

According to a profile published in Arkansas Business, William Dillard III “believes a manager’s role is to bring out” each employee’s uniqueness “to full positive impact.” His employees, however, may disagree he’s had any success in implementing this attitude at Dillard’s. Many more employees surveyed by Glassdoor gave Dillard’s 1 star out of 5 than any other rating. One star reviewers most commonly criticized management. As one former employee said, “The people at the top of the ladder do not seem to really care what is going on in the pits of the company.” Furthermore, many employees complained about unrealistic sales goals and inadequate benefits. Meanwhile, corporate profits increased from $479 million in fiscal 2013 to nearly $511 million in 2014.

ALSO READ: America’s Best Companies to Work For

1. Express Scripts (NASDAQ: ESRX)
> Rating: 2.3
> Number of reviews: 1,100
> CEO approval rating: 28%
> Employees: 30,000
> Industry: Retail – Drug Stores & Proprietary Stores

While pharmacy chain CVS Health received poor employees ratings, it still fared better than Express Scripts, which was the only large company to receive an average rating of 2.3 on Glassdoor. Just 28% of the current and former Express Scripts employees surveyed said they would recommend working at the pharmacy benefit management company to a friend. Only one other company, Forever 21, had such a poor recommendation rate. Employees at Express Scripts had a variety of complaints, but the most common ones included being rushed at work or having far too much work. Many employees reported they were constantly afraid of being fired or having their branch shut down.

Horrible employee satisfaction does not appear to have hurt the company’s bottom line. Express Scripts net income has increased each year from fiscal 2010 through fiscal 2014, with the most recent earnings of over $2 billion, Shares of Express Scripts have roughly doubled since the beginning of 2012.

Now find out about America’s 54 best companies to work.

The post The Worst Companies To Work For appeared first on 24/7 Wall St..

June 9, 2015: Here are four stocks among the 89 equities making new 52-week lows today.

Micron Technology Inc. (NASDAQ: MU) dropped about 3.8% on Tuesday to post a new 52-week low of $24.94 after closing at $25.92 on Monday. The stock’s 52-week high is $36.59. Share volume topped 30 million, more than 30% above the daily average of around 22 million shares traded. The company’s stock was downgraded from Hold to Sell at Drexel Hamilton this morning. The analysts also set a price target of $20 on the stock, down about 26% from its earlier trading level.

Hovnanian Enterprises Inc. (NYSE: HOV) posted a new 52-week low on Tuesday. Shares dropped about 14.5% to $2.71 from Monday’s closing price of $3.17. The stock’s 52-week high is $5.31. Volume totaled about 11 million shares, more than 5-times the daily average of around 2 million shares. The homebuilder reported a second-quarter loss this morning and said it expects to post a loss for the full fiscal year.

Alcoa Inc. (NYSE: AA) dropped about 0.8% on Tuesday to post a new 52-week low of $12.15 after closing at $12.25 on Monday. The stock’s 52-week high is $17.75. Share volume totaled about 11 million shares, less than half the daily average of nearly 25 million. The company had no specific news today.

Xerox Corp. (NYSE: XRX) dropped about 1% on Tuesday to post a new 52-week low of $10.93 against a 52-week high of $14.36. The stock closed at $11.05 on Monday night. Volume totaled over 6 million shares, about a third below the daily average of around 9.6 million shares. The company had no specific news today.

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If investors want to read a really upbeat self-promotional press release meant to encourage troubled shareholders, Xerox Corp. (NYSE: XRX) put out a great one last week. Solid financial position, a diverse portfolio, the achievement of many performance targets, and comments about its impressive size — billions in revenue?

Despite the company’s comments, the fact remains that Xerox has not grown since 2011. For four of the five years that current chief executive, Ursula Burns, has been at the helm of the company, earnings have shrunk year after year. 2011 saw earnings of $1.33 billion, which have fallen all the way down to $992 million. That is a 25% drop in four years.

Considering these facts, it is a wonder the stock is up 24% over the past five years. By comparison though, the broader S&P is up 94%. How is Xerox up at all, if earnings keep shrinking? Well, manufacturing capital gains in an ultra-loose monetary policy environment is not exactly rocket science. Stock buybacks are rampant these days, and no less so with Xerox.

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While there is nothing wrong with an occasional buyback program to benefit shareholders, in Xerox’s case it seems to be the only thing driving the stock higher over the past five years. In that sense, it is akin to equity cannibalism. Consider that in its cheery press release, Xerox announced an agreement:

… to sell its Information Technology Outsourcing (ITO) business to Atos for just over $1.0 billion prior to closing adjustments, enabling the company to use the funds toward its 2015 capital allocation strategy, which includes approximately $1 billion for repurchasing shares.

So Xerox sold off its ITO business and decided to use the entirety of the proceeds to support its stock price. One would think that investing in the growth of the company may be more important in the face of collapsing earnings.

Buybacks do have another smoke-and-mirrors advantage besides artificially supporting stock prices. They allow a company to claim higher earnings per share (EPS), even while core earnings continue to fall. Xerox’s adjusted EPS did rise 3% in 2014 after all, but with fewer shares, it tips the scales.

To their credit though, Xerox’s management was a bit more honest in its latest earnings call than the rosy picture it painted of its annual shareholder meeting. Chief Financial Officer Kathryn Mikells, for example, forecast second-quarter revenue growth and second-quarter margins to be flat, and she expressed disappointment with downward guidance revision.

The farthest that CEO Burns went out on her proverbial limb was to say that margins would pick up 10% to 12% in her tenure, but not in 2015:

That 25 basis points to 50 basis points [improvement in margins] will not happen. It will probably be a little bit of a headwind for us in 2015 not a tailwind.

ALSO READ: Has the Endless Growth of Dividends and Buybacks Peaked?

Much like Greece, one of Xerox’s biggest sticking points is its overly generous pensions for its bloated workforce. By the CFO’s own admission, increased pension expense is the largest driver bringing down operating profit for the company.

The big problem with pensions, of course, is that you cannot shrink them once you sign on the dotted line. So Xerox is stuck with both pension problems and poor financial performance.

By Rafi Farber

The post Despite Optimistic Press Release, Xerox Prospects Look Gloomy appeared first on 24/7 Wall St..

The dust has settled after Xerox Corp. (NYSE: XRX) announced another poor quarter. Its share price hovers around a 52-week low. Someone has to be accountable for the catastrophe that has continued to destroy the low-tech company, but who?

Ann N. Reese acts as the lead director of Xerox. In that position, the co-founder of the Center for Adoption Policy has as much a voice in the fate of drowning CEO Ursula M. Burns as any other member of the board. The board knows as well as any other group that Burns has continued to cripple Xerox, as its financial results have deteriorated for years.

Reese is also the longest-serving director at Xerox, after her appointment in 2003. Burns joined the board in 2007, the year she was appointed president. Burns became CEO in 2009 and chairman in 2010. Reese has had the chance to watch Burns. Reese also has been a party to the approval of Burns’s extravagant compensation, which reached $22.2 million in 2014.

The Xerox proxy defines the job Reese holds:

Our lead independent director’s responsibilities include: presiding at executive sessions of the independent directors; calling special meetings of the independent directors, as needed; addressing individual Board member performance matters, as needed; and serving as liaison on Board-wide issues between the independent directors and the CEO, as needed. Under our Corporate Governance Guidelines, each regularly scheduled Board meeting must include an executive session of all directors and the CEO and a separate executive session attended only by the independent directors.

This means Reese supervises meetings during which the performance of Burns is examined. That examination, to the extent it has gone on, has not helped shareholders at all.

ALSO READ: 15 Companies Losing the Most Money

In an analysis of Burns’s recent performance and her comments about the results of the most recently reported quarter, 24/7 Wall St. recently wrote:

Burns was upbeat in comments about the most recent period, as she usually is, no matter what the numbers:

Our earnings are in-line with the guidance we provided. Results in Document Technology, which included the increased impact from foreign currency, largely met our expectations. Several of our Services businesses performed well, but overall Services segment results fell short of our expectations driven by higher implementation costs in certain Health Enterprise platform accounts.

Hitting guidance is not a badge of honor. This is especially true when revenue drops and net profits collapse. Xerox’s revenue dropped 6% in the March quarter to $4.5 billion. Net income fell 20% to $225 million. Operating margins were 7.6%, which Xerox management says was off 1.1 percentage points from the same quarter a year ago.

As for its forecast:

We expect increased currency headwinds, softer signings and acquisition timing to impact revenue; and Services margin to be impacted by increased implementation costs in legacy Health Enterprise accounts. As a result, we are adjusting our full year expectations.

Burns became Xerox’s CEO well over five years ago. She engineered the buyout of Affiliated Computer Services, which cost Xerox $6.4 billion. Meant to help Xerox move beyond its roots in document production, it is hard to find evidence that the strategy worked. In the past five years, Xerox shares have risen 10% while the S&P 500 has moved higher by over 78%.

It is time for Reese to claim some measure of responsibility, and credibility, and to press for Burns to leave.

Note: Reese also sits on the board of retail failure Sears Holdings Corp. (NASDAQ: SHLD).

ALSO READ: Companies With the Best (and Worst) Reputations

The post For Xerox Director Ann N. Reese, a Disastrous Tenure appeared first on 24/7 Wall St..

May 12, 2015: Here are four stocks among the 92 equities making new 52-week lows today.

Avon Products Inc. (NYSE: AVP) dropped about 3.6% on Tuesday to post a new 52-week low of $6.75 after closing at $7.00 on Monday. The stock’s 52-week high is $15.10. Share volume was about 40% lower than the daily average of around 13.5 million shares traded. The stock continues to post lower lows as hope for a buyout fade.

ITT Educational Services Inc. (NYSE: ESI) dropped nearly 49% on Tuesday to post a new 52-week low of $2.07 against a 52-week high of $26.10. The stock closed at $4.02 on Monday night. Volume was about 20–times the daily average of around 350,000 shares. The for-profit education company was sued for fraud today by the U.S. Securities and Exchange Commission.

Noranda Aluminum Holding Corp. (NYSE: NOR) posted a new 52-week low on Tuesday. Shares dropped 30% to $2.10 from Monday’s closing price of $3.00. The stock’s 52-week high is $5.64. Volume was about 14-times the daily average of around 355,000 shares. The company’s stock collapsed when Apollo Global Management dumped nearly 23 million shares this morning.

Xerox Corp. (NYSE: XRX) dropped about 1.1% on Tuesday to post a new 52-week low of $11.12 after closing at $11.24 on Monday. The stock’s 52-week high is $14.36. Share volume was about a third higher than the daily average of around 9 million shares traded. The company had no specific news today.

ALSO READ: The States With the Highest (and Lowest) Obesity Rates

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Another measure of brand value, and another brand value study that puts Apple Inc. (NASDAQ: AAPL) on top. New Brand Finance research pegs the value of the Apple brand at $128 billion.

The measurement is odd. It is based on what a company would have to pay in royalties to “license” its own brand, if it did not own its brand. However, with the established methodologies of BrandZ and Interbrand, the leaders in brand value studies, Brand Finance needs an approach that is much different from theirs.

The conclusions from the study mirror those of most others that cover the same ground. Tech brands do the best, with 52 of the brands on the list of 500 posting an aggregate value of $574 billion, compared to the total of $2.6 trillion for all 500.

After Apple’s $128 billion, Google Inc.’s (NASDAQ: GOOGL) is worth $76.7 billion. It often runs second to Apple on brand valuation lists. The Microsoft Corp. (NASDAQ: MSFT) brand is worth $67.1 billion, followed by America’s two largest telecom companies. AT&T Inc. (NYSE: T) has a brand value of $58.9 billion, just behind Verizon Communications Inc. (NYSE: VZ) at $59.9 billion. Sprint Corp. (NYSE: S) falls very far behind at $6.9 billion.

ALSO READ: Consumer Stocks Being Reshaped by Changing Tastes of Millennials

The results for retailers have to embarrass the largest company in the industry. Wal-Mart Stores Inc. (NYSE: WMT) has a brand value of only $46.7 billion. Amazon.com Inc.’s (NASDAQ: AMZN) is $56.1 billion.

America’s top bank brands are clustered close to one another, taking the 11th, 13th, 14th and 16th spots. Wells Fargo & Co. (NYSE: WFC) leads the group at $34.9 billion, followed by Bank of America Corp. (NYSE: BAC) at $25.7 billion, Citigroup Inc. (NYSE: C) at $26.3 billion, and JPMorgan Chase & Co. (NYSE: JPM) at $24.8 billion.

The valuation of brands owned by several badly damaged companies dropped sharply. The Avon Products Inc. (NYSE: AVP) brand from 71st place in 2014 to 143th, with a brand value of $3.9 billion. The value of the Xerox Corp. (NYSE: XRX) brand dropped from 124th to 149th at $3.8 billion. The value of the Coach Inc. (NYSE: COH) brand dropped from 120th to 181st at $3.3 billion.

Among the brands that surged in value, Under Armour Inc. (NYSE: UA) moved from 389th to 195 with a value of $3.1 billion. Michael Kors Holdings Ltd. (NYSE: KORS) rose from 153 to 93 at $5.5 billion. LinkedIn Corp. (NYSE: LNKD) rose from 278 to 174 at $3.5 billion.

The Brand Finance study is like almost all others, a black box that contains formulas that are not transparent. The does not take away the fun.

ALSO READ: Is Under Armour Becoming the Apple of Apparel?

The post Apple Brand Value Hits $128 Billion appeared first on 24/7 Wall St..

May 11, 2015: Here are four stocks among the 41 equities making new 52-week lows today.

Xerox Corp. (NYSE: XRX) dropped about 1.7% on Monday to post a new 52-week low of $11.18 after closing at $11.37 on Friday. The stock’s 52-week high is $14.36. Share volume was about 50% above the daily average of around 9 million shares traded. The company had no specific news today.

Windstream Holdings Inc. (NASDAQ: WIN) dropped about 6.1% on Monday to post a new 52-week low of $8.62 after closing at $9.18 on Friday. The stock’s 52-week high is $20.84. Share volume was about 25% higher than the daily average of around 8 million shares traded. The stock posts a third-consecutive low surrounding its earnings report on Thursday.

MannKind Corp. (NASDAQ: MNKD) dropped about 7.9% on Monday to post a new 52-week low of $3.51 against a 52-week high of $11.48. The stock closed at $3.81 on Friday night. Volume was more than 60% above the daily average of around 5.4 million shares. The drug maker got smacked with a downgrade from analysts at J.P. Morgan this morning.

Plug Power Inc. (NASDAQ: PLUG) posted a new 52-week low on Monday. Shares dropped about 4.5% to $2.32 from Friday’s closing price of $2.43. The stock’s 52-week high is $6.47. Volume was nearly triple the daily average of around 3.5 million shares. The company posted much-lower-than-expected first-quarter revenue this morning, but shares spent little time in negative territory on their way to close nearly 5% higher than on Friday.

ALSO READ: The States With the Highest (and Lowest) Obesity Rates

The post The 52-Week Low Club for Monday appeared first on 24/7 Wall St..

One more quarter, one more excuse. Xerox Corp. (NYSE: XRX) CEO Ursula Burns has run out of excuses. Actually, that happened some time ago. After announcing a horrible forecast for future earnings, Xerox’s shares dropped 9% and touched a 52-week low.

Burns was upbeat in comments about the most recent period, as she usually is, no matter what the numbers:

Our earnings are in-line with the guidance we provided. Results in Document Technology, which included the increased impact from foreign currency, largely met our expectations. Several of our Services businesses performed well, but overall Services segment results fell short of our expectations driven by higher implementation costs in certain Health Enterprise platform accounts.

Hitting guidance is not a badge of honor. This is especially true when revenue drops and net profits collapse. Xerox’s revenue dropped 6% in the March quarter to $4.5 billion. Net income fell 20% to $225 million. Operating margins were 7.6%, which Xerox management says was off 1.1 percentage points from the same quarter a year ago.

As for its forecast:

We expect increased currency headwinds, softer signings and acquisition timing to impact revenue; and Services margin to be impacted by increased implementation costs in legacy Health Enterprise accounts. As a result, we are adjusting our full year expectations.

Burns became Xerox CEO in July 2009. She engineered the buyout of Affiliated Computer Services, which cost Xerox $6.4 billion. Meant to help Xerox move beyond its roots in document production, it is hard to find evidence that the strategy worked. In the past five years, Xerox shares have risen 10% while the S&P 500 has moved higher by over 78%.

The Xerox board of directors has held on to Burns for far too long, and according to the company’s proxy it has paid her $37.7 million. The board’s decision is no better than a slap in the face of shareholders.

ALSO READ: CEO Pay Up 12% in 2014

The post Obviously, Xerox CEO Burns Needs to Go appeared first on 24/7 Wall St..

April 24, 2015: Here are four stocks among the 24 equities making new 52-week lows today.

Xerox Corp. (NYSE: XRX) dropped nearly 14% on Friday to post a new 52-week low of $11.32 against a high of $14.36. The stock closed at $13.14 on Thursday night. Volume was about 5-times the daily average of around 7.4 million shares. The business technology company missed estimates this morning and lowered its guidance again.

New Gold Inc. (NYSEMKT: NGD) also posted a new 52-week low on Friday. Shares dropped about 4.2% to $3.16 from Thursday’s closing price of $3.30. The stock’s 52-week high is $6.78. Volume is about 25% below the daily average of around 3.8 million shares. The Canada-based gold miner had no specific news today.

DeVry Education Group Inc. (NYSE: DV) dropped more than 16% on Friday to post a new 52-week low of $31.41 after closing at $37.57 on Thursday. The stock’s 52-week high is $49.61. Share volume was more than 5-times the daily average of around 650,000 shares traded. The for-profit college reported earnings after the bell on Thursday and investors were disappointed with lower revenues and higher costs.

Flotek Industries Inc. (NYSE: FTK) dropped about 7% on Friday to post a new 52-week low of $13.47 after closing at $14.49 on Thursday. The stock’s 52-week high is $32.92. Share volume was about double the daily average of around 900,000 shares traded. The oilfield services company reported a net loss for the first quarter on Wednesday.

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The post The 52-Week Low Club for Friday appeared first on 24/7 Wall St..

Xerox Corp. (NYSE: XRX) reported first-quarter 2015 results before markets opened Friday. The business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.21 on revenues of $4.47 billion. In the same period a year ago, the company reported EPS of $0.26 on revenues of $4.77 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.21 and $4.56 billion in revenues.

On a GAAP basis EPS totaled $0.16, excluding a charge of $0.05 per share for amortization of intangibles.

In the first quarter of 2015, Xerox said revenue in its Services business fell 3% to $2.5 billion (up 1% in constant currency), but margin fell 1.1% to 75%, primarily due to higher costs in the company’s legacy Health Enterprise platform implementations.

Revenue in the Document Technology business came in at $1.8 billion, down 10% (down 6% in constant currency). Margin fell 1.1% to 11.1% due to increased pension expenses.

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The company’s CEO said:

Our earnings are in-line with the guidance we provided. Results in Document Technology, which included the increased impact from foreign currency, largely met our expectations. Several of our Services businesses performed well, but overall Services segment results fell short of our expectations driven by higher implementation costs in certain Health Enterprise platform accounts.

Xerox lowered its full-year revenue guidance from a prior estimate of flat to a new estimate of down approximately 1% in constant dollars. Foreign exchange effects will cost the company 4%, the top end of the prior range. Services margins are now forecast in a range of 8.5% to 9%, down from the prior guidance of 9% to 10%. Full-year adjusted EPS is now expected to total $0.95 to $1.01, down from a prior range of $1.00 to $1.06.

For second-quarter 2015, Xerox expects GAAP earnings of $0.17 to $0.19 per share and adjusted EPS of $0.21 to $0.23 per share. The consensus estimates call for adjusted EPS of $0.25 on revenues of $4.74 billion.

Xerox plans to use its proceeds from the sale of its ITO business to repurchase up to $1 billion in shares this year, to return approximately $300 million to shareholders in dividends and to spend up to $900 million on acquisitions.

Xerox shares closed up about 1.7% on Thursday at $13.14. Shares were trading down about 4.5% in Friday’s premarket, at $12.55 in a 52-week range of $11.60 to $14.36. Thomson Reuters had a consensus analyst price target of around $14.60 before the report.

ALSO READ: Google Proves It Is Still Better Than Facebook

The post Another Earnings Stumble for Xerox appeared first on 24/7 Wall St..

Stocks were looking for direction on Wednesday morning after the gains failed to Hold on Tuesday. If one trend has remained constant over the past three years, it is that investor shave lined up in droves to buy their favorite stocks every time the market pulls back. 24/7 Wall St. reviews dozens of analyst research reports each day to find new trading or investment ideas for its readers. Some of analyst calls cover stocks to buy, but other reports are about stocks to sell or avoid.

These are this Wednesday’s top analyst upgrades and downgrades.

Angie’s List Inc. (NASDAQ: ANGI) was downgraded to Neutral from Buy and the price target was slashed to $6.75 from $12.50 (versus a $6.07 close) at B. Riley.

Almost Family Inc. (NASDAQ: AFAM) was downgraded to Neutral from Outperform with a price target of $48 (versus a prior $44 price target and a $47.76 close) at R.W. Baird.

Annaly Capital Management Inc. (NYSE: NLY) was downgraded to Underperform from Market Perform and the price target was cut to $10 from $12 (versus a $10.42 close) at FBR Capital Markets.

Apple Inc. (NASDAQ: AAPL) received its first downgrade in a while. Societe Generale cut Apple to Hold from Buy based on Apple nearing its $130 price target. Another concern is how Apple can replicate the success of its iPhone 6 model when it has another upgrade later this year — and there is a concern that currency headwinds could cap its revenues.

ALSO READ: The 6 Cheapest Stocks From Goldman Sachs

Cinemark Holdings Inc. (NYSE: CNK) was downgraded to Neutral from Buy with a $44 fair value target at Janney Capital Markets.

Cummins Inc. (NYSE: CMI) was downgraded to Neutral from Buy and given a $155 price target (versus a $136.76 close) at Goldman Sachs.

Crestwood Equity Partners L.P. (NYSE: CEQP) was downgraded to Neutral from Buy at Bank of America Merrill Lynch.

Dealertrack Technologies Inc. (NASDAQ: TRAK) was started as Neutral with a $44 price objective at Merrill Lynch.

Energous Corp. (NASDAQ: WATT) was started as Buy with a $15 price target (versus a $8.71 close) at Roth Capital. This is even a higher target than the very bullish call seen from Oppenheimer last month.

Energy Transfer Equity L.P. (NYSE: ETE) was started on the Conviction Buy List with an $86 price target (versus a $63.28 close) at Goldman Sachs.

ALSO READ: 6 RBC Top Tech Stocks to Buy Ahead of Earnings

Health Care REIT Inc. (NYSE: HCN) was started as Outperform and a price target of $86 (versus a $78.12 close) at BMO Capital Markets.

Jabil Circuit Inc. (NYSE: JBL) was raised to Outperform from Market Perform with a $27 price target (versus a $23.25 close) by Raymond James.

Lululemon Athletica Inc. (NASDAQ: LULU) was raised to Buy from Neutral with a $77 price target (versus a $66.41 close) at Sterne Agee.

Qualys Inc. (NASDAQ: QLYS) was raised to Buy from Hold with a price target of $61 (versus a $46 prior target and a $49.08 close) at Topeka Capital Markets.

Regal Entertainment Group (NYSE: RGC) was downgraded to Neutral from Buy at Janney Capital Markets.

Trina Solar Ltd. (NYSE: TSL) was downgraded to Neutral from Buy at Merrill Lynch.

Verastem Inc. (NASDAQ: VSTM) was started as Buy with a price target of $16.00 (versus a $9.92 close) at HC Wainwright.

Visteon Corp. (NYSE: VC) was raised to Overweight from Equal Weight and the price target was raised to $121 from $107 (versus a $98.16 close) at Barclays.

WebMD Health Corp. (NASDAQ: WBMD) was downgraded to Sell from an already cautious Neutral rating at Goldman Sachs.

ALSO READ: Merrill Lynch’s Top Worries Ahead of Earnings Season

Xerox Corp. (NYSE: XRX) was raised to Buy from Neutral with a $15 price target (versus a $12.96 close) at Citigroup. The report talks up the company’s M&A efforts to buy more services revenues, and the weakness in 2015 has created a value proposition.

Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) was downgraded to Underperform from Neutral at Merrill Lynch.

Zendesk Inc. (NYSE: ZEN) was started with a Buy rating and was given a $28 price target (versus a $22.50 close) at Merrill Lynch.

In case you missed Tuesday’s top upgrades and downgrades, they were in shares of American Express, BIND Therapeutics, Devon Energy, General Motors, Novavax, Toyota and over a dozen more companies.

The post Top Analyst Upgrades and Downgrades: Apple, Annaly, Jabil, Lululemon, Xerox, WebMD and More appeared first on 24/7 Wall St..

For stock investors the past six years have been tremendous, but for income investors not so much. Yields on certificates of deposit from banks are still at generational lows, and many of the better stock yields have risen in price to the point that investors are concerned. In a new report, the analysts at Piper Jaffray, like many on Wall Street, think recent Federal Reserve meeting language suggests a rate hike can come as early as mid-summer — though its stance on the timing and pace of increases was more conservative than expected.

The Piper Jaffray team thinks that with the Fed’s more conservative commentary on rates hikes, that quality stocks in the outsourcing, facilities and professional services universe can provide healthy sources of income yield. 24/7 Wall St. screened the list for the four highest yielding companies: Iron Mountain Inc. (NYSE: IRM), Pitney Bowes Inc. (NYSE: PBI), Xerox Corp. (NYSE: XRX) and ABM Industries Inc. (NYSE: ABM).

ALSO READ: Buybacks and Dividends at All-Time High in 2014, Even More Seen in 2015

While two of these four dividends are closer to 2%, one yields over 3% and one currently is well above 4%. Note that the current median yield of the 30 Dow stocks is roughly 2.8%, and the 10-year Treasury note now has a yield of less than 2.0%.

Iron Mountain

Iron Mountain is a leading provider of storage and information management services. Its real estate network of over 67 million square feet across more than 1,000 facilities in 36 countries allows it to serve customers around the world.

The company offers business solutions for records, data, document and data center management, along with secured shredding to help organizations lower storage costs, comply with regulations, recover from disaster and better use current information.

Iron Mountain elected real estate investment trust (REIT) status at the beginning of 2014, so investors are paid an outstanding 4.9% distribution, which could include return of capital from time to time. The Thomson/First Call consensus price target for the stock is $38.36. Shares closed Monday at $38.33.

Pitney Bowes

This global technology company offers innovative products and solutions that enable commerce in the areas of customer information management, location intelligence, customer engagement, shipping and mailing, and global e-commerce. More than 1.5 million clients in approximately 100 countries around the world rely on products, solutions and services provided by Pitney Bowes.

Pitney Bowes investors are paid a very solid 3.1% dividend. The consensus price target for this old-school survivor stock is $28.50. Shares closed on Monday at $23.98.

ALSO READ: UBS Dividend Ruler Stocks Keep Raising Dividend Payouts

Xerox

Xerox is yet another old-school survivor stock that makes it on to the Piper Jaffray list of solid dividend stocks. It is a global business services, technology and document management company helping organizations transform the way they manage their business processes and information.

It is not just a copy equipment company, and it trades at a market discount at about 13 times expected 2015 earnings (and 11.5 times expected 2016 earnings). Xerox provides clients with business process services, printing equipment, hardware and software technology for managing information from data to document.

Investors in Xerox are paid a respectable 2.2% dividend, but with a low payout rate against its earnings, the company could arguably make that higher if there is any business improvement. The consensus price target is set at $14.14. Shares closed Monday at $13.24.

ABM Industries

This is probably the least well-known of the four top yielding stocks at Piper Jaffray. The company is a leading provider of facility solutions, with revenues of approximately $5 billion and 118,000 employees in more than 300 offices deployed throughout the United States and various international locations.

ABM’s comprehensive capabilities include facilities engineering, commercial cleaning, energy solutions, HVAC, electrical, landscaping, parking and security, provided through stand-alone or integrated solutions. ABM provides custom facility solutions in urban, suburban and rural areas to properties of all sizes, from schools and commercial buildings to hospitals, manufacturing plants and airports.

ABM investors receive a 2.1% dividend. The consensus price target is $33.71, and shares closed Monday at $32.17 apiece.

ALSO READ: 6 Big Imminent Dividend Hikes

None of these Piper Jaffray stocks will elicit the momentum stock crowd to participate. Yet they are solid companies, many which are proven survivors, that will continue to cover and pay dividends well into the foreseeable future

The post 4 Attractive Dividend Stocks for a Low Interest Rate World appeared first on 24/7 Wall St..

Xerox Corp. (NYSE: XRX) reported fourth-quarter and full-year 2014 results before markets opened Friday. For the quarter, the business technology firm posted quarterly adjusted diluted earnings per share (EPS) of $0.31 on revenues of $5.03 billion. In the same period a year ago, the company reported EPS of $0.27 on revenues of $5.21 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.29 and $5.07 billion in revenues.

For the full year, Xerox reported EPS of $1.07 on revenues of $19.54 billion, compared with EPS of $1.04 and revenues of $20 billion in 2013. Analysts had consensus estimates for EPS of $1.06 on revenues of $20.12.

On a GAAP basis, Xerox reported EPS of $0.26, which includes a $0.05 per share charge for amortization of intangible assets. As a result of the December sale of its information technology outsourcing business, Xerox reported results of the business as a discontinued operation beginning in the fourth quarter.

For the first quarter of 2015, Xerox guided adjusted EPS in a range of $0.20 to $0.22, compared with a consensus estimate of $0.25. For the full year, the company forecast EPS of $1.00 to $1.06, compared with the consensus estimate of $1.09.

ALSO READ: The Businesses That Will Build Future Growth at Amazon and Google

The company’s CEO said:

We delivered strong profit and cash in the fourth quarter. Services revenue growth improved and margin expanded both sequentially and year-over-year. This is an indication that our plan is delivering positive results. Total contract signings increased 20 percent, driven by renewals. We continue to lead in Document Technology, where we are executing well and where we expanded profit year-over-year. We’re encouraged by these results, which demonstrate our ability to win in segments where Xerox is uniquely differentiated like healthcare, graphic communications and transportation.

The light guidance combined with lower-than-expected revenues will cost Xerox in Friday’s trading. At its investor day presentation in November, the company said it expected adjusted 2015 EPS of $1.11 to $1.17. That is now out the window. The company’s turnaround plan has stalled, and about the only way Xerox can get investors pumped again is to cut costs. And we all know what that means.

Xerox shares traded down about 2.4% in Friday’s premarket trading to $13.25, having closed at $13.56 Thursday in a 52-week range of $10.26 to $14.36. Thomson Reuters had a consensus analyst price target of around $14.00 before this report.

ALSO READ: Jefferies Has 5 Large Cap Tech Stocks to Buy Now

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At its investor day presentation on Tuesday, Xerox Corp. (NYSE: XRX) is touting its strategy to deliver long-term value for shareholders “through earnings expansion, leading innovation and a diversified portfolio.” Fine, but there might be something else at work here.

In a Tuesday press release the company said:

Full-year 2015 GAAP earnings per share are expected to be in the range of 93 to 99 cents. Adjusted earnings per share are expected to be $1.11 to $1.17. Our guidance includes six cents from higher pension settlement expense.

The difference between GAAP earnings and the adjusted earnings is $0.18. Xerox’s guidance includes $0.06 for a one-time pension settlement expense. What are the other $0.12 worth of adjustments?

The consensus analysts’ estimate for 2015 earnings per share is $1.18 on revenues of $20.89 billion, down by $50 million from the 2014 revenue estimate of $20.94 billion. Lower revenue will not make up any of the mysterious 12 cents. Xerox has so far said nothing about its revenues for next year, but that may come out during Tuesday’s presentations.

ALSO READ: GE Ready to Sell $2 Billion in Stock Directly to the Public

The Xerox press release goes on:

For 2015, Xerox expects operating cash flow of $1.9 to $2.1 billion. The company also expects to allocate at least $500 million for stock buyback, and anticipates spending up to $500 million on acquisitions and approximately $300 million on dividends. Building on its share repurchase plan, Xerox’s board of directors has approved [a] $1.5 billion increase in its current share repurchase plan.

Nothing in there about where those mysterious 12 pennies are coming from. Twelve cents a share comes to around $136 million dollars, based on 1.14 billion shares outstanding, not exactly a rounding error.

Some may be coming from the $500 million buyback the company plans for 2015. Buybacks may add three or four cents per share to Xerox earnings, so now we are down to around eight mysterious cents.

One might speculate that Xerox is looking to reduce its 144,500 employee count. Restructuring costs, after all, are typically excluded from adjusted earnings. There are many other possibilities as well, of course, but cutting jobs is tried and true way to boost share prices and keep investors happy with higher earnings.

Xerox’s shares were inactive Tuesday morning, having closed at $13.37 on Monday in a 52-week range of $10.20 to $14.15.

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Xerox Corp. (NYSE: XRX) reported its third-quarter results before the market opened Wednesday as $0.27 in earnings per share and $5.1 billion in revenue. That was against Thomson Reuters consensus estimates of $0.26 in earnings per share and $5.19 billion in revenue. In the third-quarter of the previous year, Xerox posted earnings of $0.26 per share and $5.26 billion in revenue.

The long and short of this Xerox report is that bulls can claim an earnings victory, while bears can keep pointing to declining and disappointing revenues.

The company gave guidance for full-year earnings per share to be in the range of $1.11 to $1.13, and it expects that fourth-quarter earnings per share to be in the range of $0.30 to $0.32. Thomson Reuters has consensus earnings estimates for the fourth quarter of $0.31 per share and for the full year of $1.11 per share.

Net income was $273 million, down roughly 6.5% from the third-quarter in the previous year of $292 million. Third-quarter operating margin was 9.5%, which resulted in an operating profit of $486 million, up 0.1% year-over-year. Gross margin was 30.8%, and selling, administrative and general expenses were 18.6% of revenue.

Ursula Burns, Xerox chairman and CEO, said:

This quarter we delivered earnings at the high end of our range. Profits from our Document Technology business came in above expectations while Services results were lower than planned. Our Document Technology business continues to provide strong profitability, and we are continuing to invest in our Services business for revenue and profit improvement by strengthening leadership and evolving our operating model to better leverage our scale and drive efficiency and customer value. These activities will position us well for the future.

Standpoint Research upgraded Xerox to a Buy rating from Hold but lowered the price target to $16.00 from $16.50, on October 14. S&P Equity Research upgraded Xerox to a Strong Buy rating on October 8.

ALSO READ: 5 Big Earnings Season Winners!

Shares of Xerox closed Tuesday’s trading up over 4% to $13.20. Following the earnings announcement, the reaction in the premarket was mildly negative and shares were down 1% at $13.06. The shares have a consensus analyst price target of $13.95 and a 52-week range of $9.55 to $14.15. The company has a market cap of $15 billion.

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Morgan Stanley analysts reiterated their Outperform rating on Xerox Corp. (NYSE: XRX) Thursday, along with a $15 price target. But that seems to have been enough to lift Xerox shares to a new multiyear high before the close on Thursday, and again after the opening bell on Friday.

The reiteration was a vote of confidence in company leadership, as signaled in this comment from Morgan Stanley:

We left with greater confidence that management clearly recognizes where XRX had issues in the past and understands how they can leverage their track records of success to drive consistent results going forward.

There was little to encourage investors about a turnaround in the most recent quarterly report, released in July. Both the per-share earnings and revenue results were virtually the same as in the previous quarter, as well as in the year-ago period. And the consensus forecast for this year shows hardly any movement from 2013’s earnings and revenue numbers.

One vote of confidence did come in early August in the form an insider buy. An executive vice president purchased 40,000 shares for more than $517,000. That signaled the start of the most recent spate of new highs for the stock. The share price has climbed around 6.4% since then.

Short sellers were attracted by the enthusiasm in August as well. Short interest jumped more than 25% in the first two weeks of the month to around 15.9 million shares, or about 1.5% of the total float. That ended a three-period slide in short interest.

The share price hit $13.88 in early trading Friday. Shares have not traded at that level since 2008. The 52-week low is $9.55, and the mean price target is just $13.86.

READ ALSO: 15 Companies With Over $1.2 Trillion in Backlog Orders

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Stocks were down marginally in Monday’s early indications, but it felt more like a day looking for direction. Still, investors are seeking upside from stocks. The difference now is that the upside is looking at stock picks rather than relying on a five-an-a-half-year-old bull market that may need a breather. 24/7 Wall St. reviews dozens of analyst reports each morning to find new investment and trading ideas for our readers. Some analyst calls cover stocks to buy. Some analyst reports feature stocks to sell or to avoid.

These are this Monday’s top analyst upgrades, downgrades and initiations from Wall Street firms.

AcelRx Pharmaceuticals Inc. (NASDAQ: ACRX) is down close to 30% after a complete response letter from the FDA rejecting its painkiller dispensing device. Canaccord Genuity cut its rating to Hold from Buy and slashed its price target to $8 from $16.

Cisco Systems Inc. (NASDAQ: CSCO) was downgraded to Sector Perform from Outperform at Pacific Crest.

CIT Group Inc. (NYSE: CIT) was raised to Overweight from Equal Weight at Morgan Stanley.

DSW Inc. (NYSE: DSW) was downgraded to Underperform from Neutral and given a downside target of $23 (versus a $27.16 close).

ALSO READ: 6 Analyst Stocks Under $10 With Major Upside

El Paso Electric Co. (NYSE: EE) was downgraded to Hold from Buy at Jefferies, and the price target was cut to $39 from $44 (versus a $38.72 close).

Enphase Energy Inc. (NASDAQ: ENPH) was downgraded to Hold from Buy with an $11 target price (versus a $11.43 close) at Deutsche Bank. Keep in mind that this remains one of the 24/7 Wall St. 7 small cap alternative energy stocks with massive upside potential.

GlaxoSmithKline PLC (NYSE: GSK) was downgraded to Neutral from Buy at Bank of America Merrill Lynch.

Juniper Networks Inc. (NYSE: JNPR) was raised to Outperform from Market Perform with a $30 price target (versus a $23.25 close) at Bernstein. Keep in mind that Juniper fell 10% last week before recovering about one-third of its losses. Argus also reiterated its Buy rating.

NRG Energy Inc. (NYSE: NRG) was maintained as Buy but was removed from the prized Conviction Buy List at Goldman Sachs. The firm lowered the price target to $36 from $40 (versus a $31.35 closing price).

NuStar Energy L.P. (NYSE: NS) was raised to Outperform from Neutral at Credit Suisse.

ALSO READ: 5 Analyst Stocks Yielding 10% or More

Pfizer Inc. (NYSE: PFE) was downgraded to Market Perform from Outperform at BMO Capital Markets, and the price target was cut to $31 from $34 (versus a $30.19 close).

Safeguard Scientifics Inc. (NYSE: SFE) was raised to Overweight from Equal Weight at First Analysis.

Semtech Corp. (NASDAQ: SMTC) was raised to Strong Buy from Outperform with a $29 price target (versus a $21.80 close) at Raymond James.

Time Warner Cable Inc. (NYSE: TWC) was raised to Buy with a $190 price target at Wunderlich.

WellCare Health Plans Inc. (NYSE: WCG) was raised to Neutral from Sell at Sterne Agee.

Xerox Corp. (NYSE: XRX) was raised to Neutral from Underweight at J.P.Morgan.

Zimmer Holding (NYSE: ZMH) was raised to Outperform from Perform at Oppenheimer and was give a $118 price target (versus a $100.81 close).

ALSO READ: Top Stocks With Insider Buying

In case you missed Friday’s top analyst upgrades and downgrades, these included Amazon.com, Brighcove, Deckers, Exxon Mobil, GM, Mylan, Twitter and many more. We also have a preview set for the key second-quarter GDP report due on Wednesday morning.

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Xerox Corp. (NYSE: XRX) reported second-quarter 2014 results before markets opened Friday. The business technology firm posted adjusted diluted earnings per share (EPS) of $0.27 on revenues of $5.29 billion. In the same period a year ago, the company reported EPS of $0.27 on revenues of $5.39 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.26 and $5.31 billion in revenues.

On a GAAP basis, Xerox reported EPS of $0.22, which includes a $0.05 per share charge for amortization of intangible assets.

For the third quarter, Xerox guided adjusted EPS in a range of $0.25 to $0.27, compared with a consensus estimate of $0.26. For the full year the company is forecasting EPS of $1.09 to $1.13, compared with the consensus estimate of $1.10.

The company’s CEO said:

The second quarter demonstrates progress in executing on our strategy. In our Services business, revenue growth and margin are trending well in commercial services, document outsourcing and internationally. … As we enter the second half of the year, we are focused on improving on our progress and capitalizing on opportunities that will shape the success of our business.

For all intents and purposes, Xerox has stagnated. When the company reported Q3 2013 earnings last October, EPS and revenue were virtually identical to the second quarter of 2013 and the second quarter of 2014 is virtually identical to the year-ago quarter (although $100 million lighter in revenue). The share price hit a new 52-week high this past Tuesday.

For the full 2013 fiscal year EPS came in at $1.09, which is a penny below the expectation for both 2014. The consensus for 2015 calls for EPS of $1.19, for a forward price/earnings ratio of just under 11. The company’s trailing P/E ratio is 14.11, so there might be more share price growth coming. But the stock price has risen more than 30% in the past 12 months for no apparent reason, so there’s little reason to think that that merry-go-round will stop any time soon.

Xerox shares were down 1.3% in premarket trading Friday, at $12.67 in a 52-week range of $9.55 to $13.18. Thomson Reuters had a consensus analyst price target of around $13.10 before the report.

ALSO READ: America’s 10 Fastest Shrinking Companies

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Stocks were lower again on Tuesday ahead of the unofficial launch of earnings season and after the DJIA 17,000 milestone was hit for the first time ever last week. Now many investors are trying to decide if this is becoming a stock picker’s market or yet another leg up in a bull market that is now over five years old. 24/7 Wall St. reviews dozens of analyst research reports each morning of the week for new ideas for our readers. Some of the analyst research reports cover stocks to buy, and some of them cover stocks to sell or to avoid.

These are this Tuesday’s top analyst upgrades, downgrades and initiations from Wall Street firms.

Abengoa Yield PLC (NASDAQ: ABY) was started as Buy at Bank of America Merrill Lynch, started as Outperform with a $44 price target at RBC, started as Buy with a $49 price target at Canaccord Genuity and started with a Buy rating at Citigroup.

Apartment Investment and Management Co. (NYSE: AIV) was raised to Buy from Neutral at UBS.

Computer Sciences Corp. (NYSE: CSC) was started as Underweight at Morgan Stanley.

The Fresh Market Inc. (NASDAQ: TFM) was downgraded to Sell from an already cautious Neutral rating at Goldman Sachs.

Groupon Inc. (NASDAQ: GRPN) was raised to Buy from Neutral with a $9.50 price target (versus a $6.45 close) at B. Riley.

Guess? Inc. (NYSE: GES) was raised to Overweight from Neutral and the price target was raised to $32 from $25 (versus a $27.39 close) at Piper Jaffray.

Horsehead Holding Corp. (NASDAQ: ZINC) was downgraded to Market Perform from Outperform with a $21 price target (versus a $18.37 close) at FBR Capital Markets.

3M Co. (NYSE: MMM) was raised to Buy from Hold and given a blended valuation of $160 per share (versus a $144.91 close) at Argus.

RCS Capital Corp. (NYSE: RCAP) was started as Neutral with a $24 price target (versus a $22.22 close) at Merrill Lynch.

Rio Tinto PLC (NYSE: RIO) was raised to Overweight from Equal Weight by Barclays.

ALSO READ: RBC Top Stock Picks From Global Ideas List

T-Mobile US Inc. (NYSE: TMUS) was started with an Outperform rating and $40 price target (versus a $32.99 close) at BMO Capital Markets.

Verastem Inc. (NASDAQ: VSTM) was started as Perform at Oppenheimer.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) was downgraded to Perform from Outperform by Oppenheimer.

Waddell & Reed Financial Inc. (NYSE: WDR) was started with an Outperform rating at William Blair. It was also raised to Buy from Neutral and given an $80 price target at Sterne Agee.

Williams Companies Inc. (NYSE: WMB) was added to the US Focus List at Credit Suisse, and it was named as one of the firm’s top investment ideas. The firm has a $69 price target (versus $a 57.70 close), but it believes that a yield discounting target of 3% ahead could get the stock closer to $80.

Xerox Corp. (NYSE: XRX) was started with an Overweight rating and given a $15 target price (versus a $12.21 close) at Morgan Stanley.

ALSO READ: 13 Analyst Stocks Trading Under $10 With Massive Upside

On the DJIA move last week and brief profit taking seen so far, we have two DJIA features after new highs were hit above 17,000. One is what could drive the DJIA back down to 15,000 in a hurry and the second is how only 11 stocks could drive the DJIA up to 20,000.

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Stocks were firm on Tuesday morning during a shortened week that will be full of economic reports. 24/7 Wall St. reviews dozens of analyst research reports each morning of the week for new ideas for our readers. Some of the analyst research reports cover stocks to buy, and some of them cover stocks to sell or to avoid.

As this is the first day of the second half of 2014, we already ran the best performing DJIA stocks and also the best performing S&P 500 stocks so far in 2014. These are this Tuesday’s top analyst upgrades, downgrades and initiations from Wall Street firms.

Amicus Therapeutics Inc. (NASDAQ: FOLD) already had a great Monday with a gain of more than 10% to $3.34, but the stock did rise as much as $4.06. Now we have two more upgrades: to Buy from Neutral at Janney with a $5 price target (from $2.50) and to Outperform from Market Perform at Leerink Swann.

comScore Inc. (NASDAQ: SCOR) was raised to Buy from Neutral and the price target was raised to $41 (versus a $35.48 close) by Goldman Sachs.

Expedia Inc. (NASDAQ: EXPE) was started with an Outperform rating and was assigned a $90 price target (versus a $78.76 close) at Oppenheimer.

Goldman Sachs Group Inc. (NYSE: GS) was downgraded to Market Perform from Outperform at Bernstein.

iGATE Corp. (NASDAQ: IGTE) was raised to Buy from Hold and the price target was raised to $43 from $39 (versus a $36.39 close) at Jefferies.

ALSO READ: The 10 Stocks That Will Take the DJIA to 20,000

Juniper Networks Inc. (NYSE: JNPR) was reiterated as Buy with a $33 price target (versus a $24.54 close) at Argus. The call is based on pressure from Elliott Management causing a dividend and buyback, and also on strong expected earnings growth in 2014 and 2015.

MannKind Corp. (NASDAQ: MNKD) was downgraded to Hold from Buy and was given an $11 price target at a firm called MLV & Co. This is on the heels of a post-FDA pop, so we would expect some upgrades and downgrades ahead too. You can participate in our MannKind poll: Where does MannKind’s stock go in 2015?

Nabors Industries Ltd. (NYSE: NBR) was raised to Outperform from Market Perform at Raymond James.

Netflix, Inc. (NASDAQ: NFLX) is surging on news that the movie and content download king was raised to Buy from Neutral at Goldman Sachs. The driving force here is that Goldman Sachs set a $590 price target, versus a $440.60 close. The consensus price target may have only been around $421 prior to the call, but the previous street-high target from all analysts was only $525 before Goldman Sachs jumped in.

Orbitz Worldwide Inc. (NYSE: OWW) was started as Perform by Oppenheimer.

Priceline Group Inc. (NASDAQ: PCLN) was started with an Outperform rating and given a whopping $1,450 price target (versus a $1,203 close) at Oppenheimer.

Symantec Corp. (NASDAQ: SYMC) was downgraded to Market Perform from Outperform at BMO Capital Markets.

Time Warner Inc. (NYSE: TWX) was downgraded to Neutral from Buy at Goldman Sachs.

ALSO READ: Eight Merrill Lynch Stock Picks With Huge Catalysts for the Third Quarter

Xerox Corp. (NYSE: XRX) remains an unexciting stock that is also perhaps a value trap. Citigroup downgraded the office equipment player to Neutral from Buy.

In case you missed Monday’s top analyst upgrades and downgrades, they included of Charter Communications, DreamWorks, FedEx, Wells Fargo, Yahoo! and a dozen or so more companies. Also, here are nine stocks trading under $10 in which analysts see huge potential upside

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Every time the economy gets good again, and every time the stock market gets high again, waves of mergers and acquisitions begin taking place. The stock market’s bull run is now more than five years on from the March 2009 bottom. We have seen multiple mergers that are well into the tens of billions of dollars. This leaves investors wondering which companies could be the next buyout targets — and which stocks they can buy to make easy money from the next big merger.

24/7 Wall St. has identified many would-be buyout candidates over the years. The number one caveat or statement that we would always make is simple: when you buy a stock, you sure better be buying it because you like the company’s prospects rather than because some larger company or private equity group may be trying to buy that company or one like it.

Chasing mergers is nothing new. M&A rumors are in the financial media, or in subscription Web services, or they are talked about on Twitter or on message boards and in chat rooms. Barron’s talked up 10 merger candidates in its May 26, 2014 edition. Some of these companies screen out as “cheap” value stocks and some fit in as strategic plays.

Again, you better on be buying a stock that has prospects for the years ahead you like. Frankly, some of the Barron’s picks do not shield any would-be M&A chasing investor (or trader) from risks. Some may in fact be raw value traps.

ALSO READ: Thirteen Analyst Stocks Under $10 With Big Upside Calls

AMC Networks Inc. (NASDAQ: AMCX) has enjoyed its run higher with a boost coming from the likes of “Mad Men” and “The Walking Dead.” Barron’s identified it as a merger hopeful in the media consolidation trend taking place. A buyer may feel comfortable that its stock has pulled back, but a buyer also has to wonder if the success of “Mad Men” (the show is ending) and “The Walking Dead” can last forever. Fortunately there is a lot more to the media powerhouse, and the $4.4 billion market cap might not be too much for some media owner or distributor to want to own.

Xerox Corp. (NYSE: XRX) was another pick from Barron’s, but frankly a value stock buyer will recognize immediately that this may be nothing more than a value trap. Xerox has been unable to grow, and growth ahead remains elusive. Still, it is worth $14 billion, and a would-be buyer might not care to buy such a hard-sell company with limited growth prospects, even if it does trade at only about 11 times expected earnings. Over half of the company’s sales are now from outsourcing and services, but there is a stigma to this old world company. All caveats aside, even Xerox’s rivals might just go it on their own rather than pay up, even after its stock has outperformed the market in the past 12 months.

Jazz Pharmaceuticals Inc. (NASDAQ: JAZZ) is yet another biotech merger hopeful identified by Barron’s. Investors have cleaned house investing in biotechs, up until recently, and many mergers have taken place in this space over the years. Jazz’s market cap of $8 billion would be an easy purchase in size for more than a dozen biotech and pharma outfits. The lesson in biotech M&A chasing is twofold. One risk is that some biotechs never get acquired due to price or due to concerns about a drug or a pipeline, and the second risk is that a poor study result or even a nasty side-effect can destroy billions of dollars in value in a very short time. Our guess is that eight or nine out of 10 biotech stocks have been the subject of merger or buyout rumors at some point in their history as a public company.

Alaska Air Group Inc. (NYSE: ALK) was another buyout candidate discussed by Barron’s. This $6.7 billion market cap regional airline just saw its stock hit new all-time highs. It is one of the last independent carriers out there that has not been bought or amalgamated into a larger carrier, and the big airlines have even started consolidating among themselves. Airlines trade with higher multiples now that consolidation has created less competition, but this one isn’t cheap at 14 times earnings at its all-time high. If the economy turns south or if the major carriers have risen too much, then investors might merely be paying up for a maturing story.

Citrix Systems Inc. (NASDAQ: CTXS) was the other technology stock (if Xerox is a tech company) mentioned by Barron’s. This software company is worth $10 billion, and it has been mentioned as a potential candidate and even had buyout rumors for years now. Barron’s also pointed out a takeover screen that Merrill Lynch ran recently. This is one that could easily be consolidated, but the company’s management might demand too much of a premium. Even after shares pulled back 20% from their high, the stock is still worth about 20 times earnings. Some companies may want its revenue growth, but no buyer is going to get Citrix on the cheap — to the point that acquiring this will only be cheap for a buyer that either has more cash than it can figure out what to do with, or whose own stock is expensive enough that it looks cheap on a relative value basis.

ALSO READ: Last Week’s IPOs: Winners and Losers

24/7 Wall St. admits that owning the next buyout stock can be very rewarding. Just don’t get stuck holding the bag in a value trap or in a position that the market dictates is too expensive to be bought at a price that the buyout candidate’s management team can agree to. And never forget the one rule of investing in companies like this: you better be buying because you like their prospects as standalone businesses rather than just on a hopeful buyout whim.

The waves of M&A have been mind-numbing of late. The raw size is enough to prompt even the less creative investors to wonder if they should be trying to find the next potential buyout candidate.

AT&T Inc.’s (NYSE: T) acquisition of DirecTV is worth close to $50 billion in equity value. This is a strategic buy, and AT&T moves into being a top dog in telecom, wireless and pay TV. Imagine when all of your bills for wireless, landline (yes, some people still have them) and satellite TV are finally consolidated into one bill with just one due date.

Comcast Corp.’s (NASDAQ: CMCSA) purchase of Time Warner Cable, with divestitures expected, is another strategic buyout for more market share. Its price tag is close to $70 billion in enterprise value. The difference here is that Comcast also owns NBC, so it is now a content owner and distribution source.

Pfizer Inc.’s (NYSE: PFE) would-be buyout of AstraZeneca is a strange one in Big Pharma. It is a cross-border tax strategy, worth more than $120 billion in enterprise value. The deal is on hold and may be dead, and politicians in the United States want make deals of this sort much harder to accomplish.

The Allergan and Valeant buyout is another one up in the air. That deal is worth potentially more than $50 billion in enterprise value, and it has two purposes. First, it is tax-efficient. Second is that it is part of the roll-up strategy that Valeant Pharmaceuticals International Inc. (NYSE: VRX) wants to pursue.

Caveat emptor!

ALSO READ: Five Momentum Stocks That Could Be Hot Summer Trades

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