160.45 +0.47 (0.29%)
Pre-Market: 4:15AM EDT
|Bid||0.00 x 900|
|Ask||164.36 x 800|
|Day's Range||159.05 - 165.46|
|52 Week Range||128.08 - 180.54|
|Beta (3Y Monthly)||1.14|
|PE Ratio (TTM)||18.99|
|Forward Dividend & Yield||3.88 (2.34%)|
|1y Target Est||N/A|
If you are looking for some fresh investing inspiration, look no further. Hedge funds have just revealed their second quarter trades, and the results are now in. RBC Capital has analyzed the 2Q19 13f’s of 363 major hedge funds with significant stakes in US equities. And from this data it has compiled a list of hedge funds’ most popular stocks right now i.e. stocks with the most hedge fund dollars invested. “In our experience, crowded names among active managers, including hedge funds, are usually crowded for a reason (good fundamentals). Most of our baskets of crowded names have outperformed since we started tracking the data at the end of 2010, and our stats can be used to make the case for hedge fund management” comments the firm. Nonetheless the firm does add that positioning is still a risk factor worth monitoring. After all, outperformance of popular hedge fund longs has occurred against the backdrop of strong growth leadership in the market “and may merely reflect the underlying style bias of the market that has been in place” says RBC Capital. Notably 60% of the list falls in TIMT (technology, internet, media and telecommunications), down from 70% last quarter.Here we take a closer look at five top stocks that feature in the Top 20 list. What’s more all these stocks also score a ‘Strong Buy’ analyst consensus, based on all the ratings over the last three months. Let’s see which five stocks make the grade now: 1\. Microsoft (MSFT)Microsoft refused to give up its no. 1 position in the second quarter. It remains the most popular hedge fund stock- despite a sizable decline in the number of funds owning the stock (for the second quarter in a row). Indeed, RBC Capital reveals that hedge funds still hold a whopping $18,131 million of Microsoft shares. That’s with 29% of the 363 funds that it examined holding MSFT stock. Luckily for these funds MSFT scores a firm ‘Strong Buy’ analyst consensus. That's with a $154 average price target (15% upside potential). Out of 24 analysts covering MSFT right now, 22 are bullish with only 1 hold rating and 1 sell rating (from long time MSFT bear Jefferies' John Difucci). “We maintain a bullish stance on MSFT as one of our top cloud ideas to own in 2019 based on a multiyear transformation of the model driven by commercial cloud revenue that could reach $100B in CY23 from a $44B run-rate today” celebrated KeyBanc analyst Brent Bracelin after the company reported a solid revenue beat on commercial cloud growth of 39% y/y.Aptly calling his report ‘On Cloud Nine’, the analyst reiterated his MSFT buy rating while ramping up the price target from $143 to $155. Fiscal 4Q19 results impressed as it sustained double-digit growth for the eighth consecutive quarter, despite a material two-point FX headwind, summed up Bracelin. 2\. Facebook (FB)Facebook shifted up a notch in the second quarter. The social media giant is now the third favorite hedge fund stock, up from fourth place in Q1. That’s due to Alphabet Inc (GOOGL) slipping from 2 to 4 in the quarter after seeing a double-digit decline in ownership. In contrast, six new funds bought into FB in Q2.According to RBC Capital, 34% of the funds it tracks hold Facebook stock, while the total value of the holding comes out at $16,191 million (so still quite a way off Microsoft). Analysts share this bullish outlook. With 33 out of 36 analysts calling FB a buy, the $234 average price target suggests over 30% upside lies ahead. Rosenblatt Securities analyst Mark Zgutowicz believes that the demand picture for FB properties could not be stronger. “We maintain our Buy rating and $242 PT on FB shares and would be aggressive buyers on any weakness related to the 4Q guide deceleration” he instructed investors recently. Demand for the feeds remains high, says Zgutowicz, given stellar ROAS [return on ad spend] and Stories ad tests are steadily progressing at still a low bar for the stock. “Our checks with direct response advertisers continue to point to stellar ROAS on the triple strength targeting platform of News Feed (NF), Messenger and Instagram” he concluded. 3\. Netflix (NFLX)Netflix is hedge funds’ fifth most popular stock. Funds have now invested a jaw-dropping $10,504 million in the stock, with two new funds creating NFLX positions in Q2. As a result, just over a fifth of the funds polled hold NFLX in their portfolio. So does this mean we have a buying opportunity at hand? After all the stock has pulled back significantly following disappointing earnings results. According to the Street, the answer seems to be yes. The stock is showing a Strong Buy consensus with an average price target of $423. This translates into considerable upside potential of 45%. “It’s still early in the quarter, but data through July looks solid (rebound from 2Q),” commented SunTrust Robinson’s Matthew Thornton on August 19. “Google searches (on keyword “Netflix”) and mobile app downloads for the month also show nice upticks vs 2Q19 and back toward or above the 1Q19 high-water-mark.”Although NFLX lost 126,000 US customers in the second quarter, Thornton believes popular series like Sacred Games, The Crown and Peaky Blinders can help stem the losses. With this in mind, the analyst reiterated his NFLX buy rating and $402 price target. A similar message comes from Bernstein analyst Todd Juenger. “The defining question for investors coming out of Netflix [second quarter] is whether the subscriber miss was simply natural variation (tied to a price increase) in a long-term growth trajectory, in other words a ‘blip,” he told investors. “We think the case for ‘this is a blip’ is compelling.” Clearly hedge funds think so too. 4\. Boeing (BA)Boeing was a new name to the Top 20 hedge fund list in Q2. The world’s largest aerospace company now features in 19% of the 363 funds in RBC’s study (with 9 funds creating new positions in the quarter). These funds own a total of $5,458 million of BA stock.And on the whole analysts would approve of the fund enthusiasm for BA. If we look at only the Street’s best-performing analysts, the consensus works out at ‘Strong Buy.’ Plus the $429 average analyst price target indicates 20% upside lies ahead. Of course, all eyes are on Boeing’s 737 Max plane, which suffered two fatal crashes in a five-month span and is currently grounded. According to Bloomberg, there about 600 planes now out of service. However, the Federal Aviation Authority (FAA) just indicated that the model could be ungrounded come October. “We continue to support the FAA and global regulators on the safe return of the Max to service,” Boeing said in a statement. Following the latest news, five-star Cowen & Co analyst Cai Rumohr reiterated his buy rating with a bullish $460 price target (29% upside potential). He sees a 3-to-1 positive risk-reward around the FAA certification, and expects the stock to react to early indicators of success/failure.“MAX recovery profile looks intact, and FAA certification flight could be 4-6 weeks off -- a key milestone for the stock” Rumohr said. “Traffic growth, 787 demand, 777x schedule are "watch" items; but they are offset by robust 787 cash generation.” Bottom line: BA remains the analyst’s top pick for cash flow per share of $30+ (9-10% yield) in 2020 & 2021. 5\. Union Pacific Corp (UNP) Union Pacific is a leading railroad franchise, covering 23 states in the western two-thirds of the United States. Like BA, UNP is a new addition to the Top 20 list of hedge fund stock holdings. Eight new funds created UNP positions in Q2, while the total $ value owned now stands at $5,157 million. We can also see that 15% of funds in RBC’s study own Union Pacific.So what’s driving this wave of bullish sentiment? Well, the company just posted a 2Q EPS and EBIT beat and a record operating ratio despite being significantly hindered by flooding. “We raise our estimates and PT and continue recommending UNP as a top pick” five-star Cowen & Co analyst Jason Seidl wrote following earnings. He now sees shares hitting $184 vs his previous $180 price target. “UNP is one of the best managed North American Class I railroads and the only western one that is publicly traded” stated Seidl. With the hire of Jim Vena as COO, he believes the company is on its way to revenue improvement.That’s thanks to the adoption of Precision Scheduled Railroading (PSR). Created by the late Hunter Harrison, PSR refers to the principle of generating extra revenues by using fewer railcars and locomotives. According to Seidl, UNP's precision scheduled railroading rollout is on the right track so far. He notes, for instance, a 10% increase in train length that has seen UNP increase their parked locomotives to 2,150. Find analysts’ favorite stocks with the Top Analysts’ Stocks tool
Union Pacific Corporation (NYSE:UNP) stock is about to trade ex-dividend in 4 days time. This means that investors who...
Union Pacific's (UNP) cost-controlling measures are driving growth. Additionally, the company's efforts to reward shareholders are appreciative.
On CNBC's "Mad Money Lightning Round," Jim Cramer said Union Pacific Corporation (NYSE: UNP ) is a teriffic stock. He thinks it's a long-term great situation. Cramer doesn't like Teva Pharmaceutical ...
The U.S. operations of the Class I railroads had fewer employees on their company rosters in July, continuing a downward trend that has been going on for years. In mid-July, headcount totaled 140,703 employees at U.S. Class I rail operations, according to data compiled by the Surface Transportation Board. U.S. rail headcount fell 4.6 percent from July 2018, and nearly 0.5 percent from June 2019.
While trade uncertainty is a dominant theme in the rail demand outlook for moving grain this fall, other factors such as global market competition come into play when considering how much grain volume could be moved by U.S. rail operations in the 2019-2020 season. You have to look at international demand and look backwards," said Jay O'Neil, a consultant and agricultural economist. Meanwhile, the ongoing trade war between the U.S. and China has dashed the hopes of U.S. soybean producers again for this upcoming fall because China has drastically cut its imports of U.S. soybeans.
Both railroad giants reported earnings last month, but their share-price trends since then have been markedly different.
The S&P 500 lost nearly 3% of its value yesterday, as an inversion of the yield curve convinced enough traders the risk of a recession is all too real. It remains to be seen if investors will continue to believe it, but the selloff to date still doesn't qualify as a full-blown "correction."Source: Shutterstock Macy's (NYSE:M) led the way with its 13% plunge in response to a big earnings miss, underscored by warnings that tariffs were becoming problematic. Advanced Micro Devices (NASDAQ:AMD) fell 6%, as it was pegged as one of the more vulnerable names of a global economic slowdown.Yet, there were some winners despite Wednesday's misery. FireEye (NASDAQ:FEYE), for instance, gained nearly 3% for reasons investors are still trying to ferret out. Rival cybersecurity stocks didn't fare any better than the broad market did on Wednesday.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Growth Stocks to Buy for the Long Haul Headed into Thursday's action, keep a close eye on the stock charts of Salesforce (NYSE:CRM), Oracle (NYSE:ORCL) and Union Pacific (NYSE:UNP). These names may make for your best trading bets. Union Pacific (UNP)It ended up coming back from the brink of the start of a truly devastating breakdown thanks to yesterday's late-session rally. But, Union Pacific shares remain uncomfortably close to that last-ditch line in the sand. If one more bad day is allowed to take shape, it could mean a key floor snaps and opens the floodgates. And, for the record, UNP shares are likely already fighting a losing battle for two (semi-related) reasons.The good news is, the most plausible landing spots for any pullback are well defined. * Click to EnlargeThe last-ditch line in the sand is $163.50, plotted in red on both stock charts. That's where Union Pacific have found lows since June, and near where the white 200-day moving average line is now. * Zooming out to the weekly chart of UNP it becomes clear that the stock is being guided higher within the confines of bullish trend lines. The recent bump into the upper one sets the stage for a retreat back to the lower one, both marked in blue. (The red dashed line as an alternative floor.) * It's not evident on the chart, but railroad traffic has been tepid this year, with traffic falling back below 2017's and 2018's levels. Oracle (ORCL)It has more to do with the broad market's weakness than Oracle in particular. Nevertheless, the situation ORCL shares are in leaves them more vulnerable to major trouble than what most other stocks are facing at this time. And, the bears have already tipped what seems to be a pretty strong hand.There's also a great deal of similarity to the UNP stock chart. That is, Oracle shares are in a major, long-term uptrend but due for at least a small pullback to the lower edge of that trading channel. * 7 5G Stocks to Buy Now for the Future * Click to EnlargeAs was the case with Union Pacific, Oracle's long-term bullish trading range is marked with blue lines on the weekly chart. The other potential floor is plotted with a red dashed line. Both will be around $46 by the time they could be tested. * It's not likely to be a coincidence that Wednesday's selling was halted right at the 200-day moving average, plotted in white on both stock charts. * Although not decidedly bearish yet, notice there seems to be more bearish volume than not. The daily chart's falling accumulation-distribution line quantifies that mostly qualitative idea. Salesforce (CRM)Finally, as far as breakdowns go, the line Salesforce has dished out since the beginning of this month has been sloppy to the point of being untrustworthy. That is to say, this usually choppy stock could easily, seemingly, snap back to a bullish mode with just the smallest bit of help from the broad market.On the other hand, we're seeing a few more subtle red flags now that we hadn't seen in a long while. Things could get worse for owners before they get better. * Click to EnlargeThe chief concern is the break below the 200-day moving average line, marked in white on both stock charts. Underscoring that potential problem is the fact that all other moving average lines are en-route to falling below the 200-day line as well. * Although we've seen volume spikes on bearish days before, we've not yet seen persistently bearish days with this much sustained selling volume. * With no other technical framework to point to likely landing spots, the next most likely floor is around $123.35, where the 38.2% Fibonacci retracement line awaits.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post 3 Big Stock Charts for Thursday: Oracle, Salesforce and Union Pacific appeared first on InvestorPlace.
At the end of July FreightWaves asked a question that seemed almost counter-intuitive at the time – is the freight market starting to recover? From Los Angeles, specifically, volumes are up 39 percent year-over-year (OTVI.LAX). Current volumes are up against relatively easy, post pull-forward comparisons in 2018, but at this point a good set-up for peak season seems to be emerging from some noisy data.
It's fair to say that over the past month, CSX (NASDAQ:CSX) has come off the rails. During the past month, CSX stock sunk as the transportation giant reported miserable second-quarter numbers in mid-July.Source: Shutterstock Revenues missed expectations by a wide margin, the biggest miss since early 2016. Earnings also missed expectations by the widest margin in the past five years. More important, the full-year guide was cut sharply to well-below consensus levels.Ever since, CSX stock has dropped nearly 20%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSome contrarian investors might see this big drop in CSX as an opportunity to buy into a company that ostensibly seems very stable. But, while I love to play the contrarian, I don't think buying the dip in CSX here is the right move. * 7 Safe Dividend Stocks for Investors to Buy Right Now The reality is that CSX stock has come off the rails, and there's no reason to step in the way of this "off the rails" train just yet. The fundamentals are weak and will likely get worse before they get better. The optics are ugly and won't improve anytime soon. Meanwhile, the analyst community is growing increasingly bearish and won't provide any support; neither will the technicals, since CSX has blown through pretty much all of its important technical and psychological levels.In sum, then, there's no reason to step in the way of this sell-off just yet. Instead, the smart move here is let this sell-off play out, and then buy the dip once the fundamentals, optics, and technicals become more supportive of a rebound rally. The Rail Industry Is off the RailsThe 20% plunge in CSX stock over the past month is not unique to this specific company. Instead, it is part of a more wide-sweeping sell-off across the entire rail industry.Alongside CSX, peer rail transport companies Norfolk Southern (NYSE:NSC), Union Pacific (NYSE:UNP), and Trinity (NYSE:TRN) all reported Q2 revenue misses with sluggish volume growth. All four stocks have fallen 8% or more over the past month.Under the hood, the trade war is having a materially negative impact on the U.S. manufacturing sector. When the manufacturing sector slows, demand for rail transport slows, too, since companies are responding by transporting less volume, less frequently.When volumes drop, margins take a hit because costs aren't coming out of the system as quickly as volumes are dropping. Further, this pain may just be beginning. The trade war has escalated over the past few weeks, and as it has, it's become increasingly clear that elevated trade tensions and slowing manufacturing activity are here to stay for the foreseeable future.As such, the outlook for CSX and the entire rail industry over the next several months is sluggish volume growth alongside potential margin compression. That's a losing combo. No Reason to Buy the Dip YetAt some point, this dip in CSX becomes a compelling buying opportunity, since CSX is a stable company with healthy long term growth prospects.But, that point isn't here yet. Instead, at the current moment, there's very little reason to step in the way of this CSX stock sell-off.First, as outlined above, rail industry fundamentals aren't good now, nor do they project to improve anytime soon given trade war escalation. Second, CSX isn't a standout in this industry. Instead, they've been hit like everyone else during this rail slowdown, reporting negative revenue growth last quarter.Third, the optics here are bad. Investors quite simply do not want trade war exposure at the current moment. CSX stock has a ton of trade war exposure. As such, it is unlikely that investors will be attracted to the stock anytime soon.Further, analysts are cutting estimates and the number of Buy recommendations on the stock has dropped from 11 at the beginning of the year, to five today, according to YCharts. Thus, there isn't much support from the analyst community, either, and without that support, investors likely aren't inclined to buy the dip in bulk.Fourth, the technicals are broken. During this most recent sell-off, CSX blew through its 20-day, 50-day, and 200-day moving averages without any regard for those technical support levels. The next psychological level of support comes in at $65, where the stock has shown resilience before. Until the stock does show support there, there's little reason to believe that there's much technical support in this stock anywhere.Overall, there's simply very little reason to step in the way of this sell-off today. It increasingly appears that there's more pain ahead for CSX. Investors should only buy the dip once it appears that the worst has passed. Bottom Line on CSX StockThings are bad at CSX right now. The unfortunate reality is that things will probably get worse before they get better. That means that the recent 20% plunge in CSX stock isn't an opportunity. Instead, the stock will likely sell-off more before it bottoms.As such, now isn't the time to buy the dip in CSX stock. Rather, it's time to steer clear.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post Run Away from CSX Stock as It Comes Way off the Rails appeared first on InvestorPlace.
Public railroad stocks can be especially attractive in a growth economy. Few industries are as closely tied to economic growth as those involved in moving goods and commodities. Railroad stocks have seen some volatility over the past few years, due in part to the falling fortune of coal, which accounts for nearly 40% of America's railroad tonnage.
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll...
Moody's Investors Service has upgraded the Port of Beaumont Navigation District, TX's outstanding revenue bond debt totaling $16.4 million to A2 from A3. Port of Beaumont Nav Dist, TX's upgrade to A2 from A3 is based on the port's sustained increase in operating revenues and debt service coverage levels, which have grown due to the revenue stream provided by Jefferson Energy Companies since 2015.
Due to CSX's (NYSE:CSX) earnings and revenue miss, many analysts and pundits have begun to take a more bearish view of CSX stock. With its 2019 revenues set to fall 1%-2%, according to its own estimates, CSX could face a rough ride. Also, the trade war with China and signs of an economic slowdown have weighed on CSX's freight volumes and intermodal transport business.Source: Shutterstock The low cost of rail transport has and will continue to bolster CSX's business model in the long-term. However, falling revenues and economic headwinds look positioned to derail CSX stock for the foreseeable future. * 8 of the Most Shorted Stocks in the Markets Right Now CSX Stock Price TumbledOn July 16, CSX stock price fell by more than 10% following the company's earnings. The company's earnings and revenue fell short of analysts' average expectations. Moreover, the company's guidance also came in below the average estimate. CSX expects its revenues to come in 1%-2% lower than last year's revenue of $12.25 billion or between $12 billion and $12.13 billion. The average revenue estimate had previously stood at $12.47 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe negative sentiment spread across the railroad industry. Union Pacific (NYSE:UNP), Kansas City Southern (NYSE:KSU), and Norfolk Southern (NYSE:NSC) also plunged on July 16. The sellers appear to have made the right call. Norfolk Southern's earnings subsequently came in below analysts' average estimates, while Union Pacific's top line missed the consensus outlook. The Economic Cycle Bodes Poorly for CSX StockIn a previous article,I predicted that guidance would likely determine the near-term performance of CSX stock. Since the company had already cut its revenue guidance in January, issuing lower guidance a second time destroyed the confidence many had in CSX stock.Additionally, CSX and its peers serve as a proxy for the overall economy. As InvestorPlace columnist James Brumley stated, there is now widespread concern that the economy is slowing.The Fed attempted to address this issue with a cut in interest rates recently. Before this cut, the Federal Reserve had not reduced rates since soon after the 2008 financial crisis. So far, the Fed's move has failed to rejuvenate CSX stock.CSX stock price traded above $71 per share before the cut. Since it occurred, the stock fell for the rest of the week. As of this writing, the CSX stock price now stands at about $66.50 per share.Moreover, InvestorPlace columnist Josh Enomoto points out that CSX stock dropped massively during the 2000 tech bubble and the 2008 financial crisis. During both downturns, CSX stock price lost more than two-thirds of its value. If rate cuts fail to head off an economic slowdown, I wouldn't be surprised if history repeats itself.I do not necessarily believe that the CSX stock price will fall by two-thirds again. However, it may be vulnerable enough to justify selling the equity. Traders have few reasons to ride out such a downturn. The Bottom Line on CSX StockRail remains the lowest-cost means of transporting freight. For this reason, I like the railroad industry in general, and I think CSX stock will deliver returns over the long-term.But at this stage, I see more to lose than gain by holding CSX stock at these levels. When investors sour on CSX stock, history has shown that they turn on it hard. The recent rate cut did not boost CSX stock price, and the stock began a new downward move following the news.That does not mean traders should stop paying attention to this company. I think CSX stock will be a great buy during the depths of a recession. However, in the late stages of an economic expansion, traders should stay off the tracks, since for now, CSX is much more likely to report negative news than positive metrics.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post CSX Stock Will Likely Continue to Fall Amid Economic Uncertainty appeared first on InvestorPlace.
EVP & CHIEF FINANCIAL OFFICER of Union Pacific Corp (30-Year Financial, Insider Trades) Robert M Jr Knight (insider trades) sold 8,620 shares of UNP on 07/31/2019 at an average price of $180.04 a share. Continue reading...
Going on 16 hours here in Cumberland. Overnight these guys got a megaphone, about 10 pizzas, and some "big boy juice". The #blackjewel coal train still hasn't left. pic.twitter.com/cZ9hsV1RDH ...
The release of earnings results of four major players in the industrial sector makes us study the impact on certain ETFs with high exposure to these in-focus companies.