Barron's Picks And Pans: Lennar, Invesco, L Brands, VMWare And More

Nelson Hem
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In this article:

  • This weekend's Barron's cover story shows why the U.S. housing market is primed for more gains.

  • Other featured articles examine the prospects for a retailers showing surprising strength and a good stock pick if the market corrects.

  • Also, a merger that might be a bad deal and two companies that might not be fixable.

"The Housing Market's Rebound Is Far From Over" by Lawrence C. Strauss makes the case for strong demand and limited supply to lift home prices further and to boost shares of homebuilders such as Lennar Corporation (NYSE: LEN), even with the prospects of rising interest rates hampering home buying.

Avi Salzman's "Finding the Bargain Stocks Among Department Stores" points out that some big retail chains had surprisingly strong fourth-quarter results, offering investors some late-arriving holiday cheer. However, challenges remain and investors need to choose carefully. See whether Kohl's Corporation (NYSE: KSS) and others are bargains now.

In "Invesco: A Good Stock Pick for Bad Times," Jack Hough takes a look at why this asset manager's funds could be poised to pick up as the stock market corrects. See why Barron's believes shares of Invesco Ltd. (NYSE: IVZ), one of the cheapest among its asset-management peers, have up to 20 percent upside.

The reported plan for Dell to merge with VMware, Inc. (NYSE: VMW) would allow the company to reduce its massive debt and bolster its cash flow. According to "Dell's Bad Deal for VMware's Shareholders" by Andrew Bary, however, the deal also probably will reduce their combined value.

See also: Trump's Tariff Decision Could Make Your Beer More Expensive: Here's How

In Ben Levisohn's "Can L Brands Be Fixed?" see why Barron's believes shares of L Brands Inc (NYSE: LB) now look ugly -- and could get uglier still. The stock has lost more than half of its value during the past three years. The company's problems are obvious, says the article, and many stem from its Victoria's Secret unit.

Follow-up article "Time Is Running Out on Fitbit" points out that Fitbit Inc (NYSE: FIT), the titan of fitness trackers, still sells millions of them, but the company has acknowledged that the market is rapidly changing. And its smartwatches don't appear poised to take the market by storm. Is there any chance for a revival?

Also in this week's Barron's:

  • 2018's hottest housing markets

  • The trade war's biggest winners and losers

  • The seeds of another financial crisis

  • How high payouts can equal low stock prices

  • Why high-yield bonds could be mispriced

  • Another look at the unorthodox Spotify initial public offering

  • How Italy's election will play out in the market

  • Why Japan looks ready to sustain gains

See more from Benzinga

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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