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Goldman Sachs Boosts Estimates for Microsoft (MSFT)

Software superpower Microsoft Corporation ( MSFT ) saw its earnings estimates boosted on Friday by analysts at Goldman Sachs. The analyst said it raised its earnings estimates for MSFT through 2012, noting that the PC product cycle will contribute to earnings growth. Goldman currently rates the stock as a “Buy” with a $38 price target. Microsoft shares, which had closed at $29.18 on Thursday, rose 15 cents, or +0.5%, in premarket trading Friday. The Bottom Line We have been recommending shares of MSFT since Aug.28, when the stock was trading at $24.64. The company has a 1.78% dividend yield, based on last night’s closing stock price of $29.18. Microsoft Corporation ( MSFT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Goldman Sachs Boosts Estimates for Microsoft (MSFT)

March 12, 2010   No Comments

Potash Corp. Raises Q1 Forecast; Shares Jump (POT)

Fertilizer giant Potash Corp. ( POT ) on Friday significantly raised its first quarter forecast, citing higher potash demand, sending its shares soaring. The Saskatchewan, Canada-based company said it now expects first quarter earnings to range from $1.30 to $1.50 per share, which is much higher than its previous estimate of 70 cents to $1 per share. Potash said in a statement that “The upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments, as well as higher-than-expected margins in nitrogen and phosphate.” Potash Corp. shares jumped $9.27, or +7.9%, in premarket trading Friday. The Bottom Line We removed shares of POT from our “recommended” list back on June 3, when the stock was trading at $116.39. The company has a .34% dividend yield, based on last night’s closing stock price of $116.93. The stock has technical support in the $100-$103 price area. If the shares can firm up, we see overhead resistance around the $120-$124 price levels. We would remain on the sidelines for now. Potash Corp. ( POT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Potash Corp. Raises Q1 Forecast; Shares Jump (POT)

March 12, 2010   No Comments

Boeing’s Price Target Boosted at Bank of America/Merrill Lynch (BA)

Aircraft maker The Boeing Company ( BA ) on Thursday saw its price target lifted by analysts at Bank of America/Merrill Lynch. The analyst raised its price target for BA to $77 from $65, noting that the stock normally outperforms as we head into the summer Air Shows season. Bank of America/Merrill Lynch maintained its “Buy” rating on the stock. Boeing shares, which had closed at $70.01 on Wednesday, were mostly flat in premarket trading Thursday. The Bottom Line We have been recommending shares of BA since Aug.27, when the stock was trading at $47.82. The company has a 2.40% dividend yield, based on last night’s closing stock price of $70.01. The Boeing Company ( BA ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Boeing’s Price Target Boosted at Bank of America/Merrill Lynch (BA)

March 11, 2010   No Comments

Fortune Brands’ Estimates Cut at Goldman Sachs (FO)

Liquor and golf products maker Fortune Brands, Inc. ( FO ) saw its earnings estimates lowered on Thursday by analysts at Goldman Sachs. The analyst lowered its estimates for FO through 2012, noting that the recent sale of its Cobra golf unit will likely eat into earnings. Goldman maintained its “Buy” rating and $50 price target on the stock, however, which had closed at $47.03 on Wednesday. Fortune Brands shares were mostly flat in premarket trading Thursday. The Bottom Line We had removed shares of FO from our “recommended” list back on Sept.30, when the stock was trading at $43.48. The company has a 1.62% dividend yield, based on last night’s closing stock price of $47.03. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $50-$54 price levels. We would remain on the sidelines for now. Fortune Brands, Inc. ( FO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Fortune Brands’ Estimates Cut at Goldman Sachs (FO)

March 11, 2010   No Comments

Bed Bath & Beyond Cut to “Underperform” at FBR Capital (BBBY)

Home goods retailer Bed Bath & Beyond Inc. ( BBBY ) caught a big downgrade on Thursday from analysts at FBR Capital Markets. The analyst cut its rating on BBBY to “Underperform” from “Market Perform.” FBR also cut its downside price target for the stock, which had closed at $41.67 on Wednesday, to $38. The firm noted that “BBBY is expected to cycle market-share benefits from the liquidation of former competitor Linens ‘N Things (LIN), who had fully liquidated from the home furnishings market through December 2008; 34% of BBBY’s store base competes closely with a former LIN store (within five miles, 57% within 10 miles). We think removal of LIN from the market has likely helped BBBY comps in 2009 by +/- 400 bps. The 4Q09E sales and EPS should be good for BBBY, per se (we model comps of up 8.5%), on the heels of “Home” commentary out of others; yet we expect that recent trends represent the best it gets, with many companies now cycling trough “Home” trends of a year ago (3Q08/4Q08). In addition to this, BBBY, also cycles relatively extraordinary SG&A trends of a year ago, as the company retrenched its cost structure (“controllable expenses”), with notable SG&A leverage seen commencing in 1Q09 last year (cycles 1Q10E).” FBR Capital also said it much prefers Home Depot ( HD ) and Lowe’s ( LOW ) in the home goods sector. Bed Bath & Beyond shares fell 78 cents, or -1.9%, in premarket trading Thursday. The Bottom Line Shares are trading near the 52-week high levels of $43 a share. The stock has technical support in the $37-$40 price area. We do not currently rate this non-dividend paying stock, but we do follow the company closely. Bed Bath & Beyond Inc. ( BBBY ) does not currently pay a dividend. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Bed Bath & Beyond Cut to “Underperform” at FBR Capital (BBBY)

March 11, 2010   No Comments

Men’s Wearhouse Swings to Q4 Loss (MW)

Mens dress clothing retailer The Men’s Wearhouse, Inc. ( MW ) said late Wednesday that it swung to a fourth quarter loss, hurt by one-time charges, but adjusted results beat expectations. The Houston-based company reported a fourth quarter net loss of $18.9 million, or 36 cents per share, compared with a profit of $1.5 million, or 3 cents per share, in the year-ago period. Excluding one-time charges, its adjusted loss was 11 cents per share. Revenue fell 4% from last year, to $457.2 million. On average, Wall Street analysts expected a worse loss of 16 cents per share, albeit on higher revenue of $465.9 million. Looking ahead, the company forecast first quarter earnings of 12 to 16 cents per share, which would beat analysts’ current estimates for 9 cents per share. Still, Men’s Wearhouse shares plunged $1.68, or -6.8%, in premarket trading Thursday. The Bottom Line We have avoided shares of MW since our early June 2008 coverage began, when the stock was trading at $19.80. The company has a 1.45% dividend yield, based on last night’s closing stock price of $24.83. The stock has technical support in the $20 price area. If the shares can gain on this morning’s momentum, we see overhead resistance around the $27-$28 price levels. We would remain on the sidelines for now. The Men’s Wearhouse, Inc. ( MW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Men’s Wearhouse Swings to Q4 Loss (MW)

March 11, 2010   No Comments

Dow Chemical’s Earnings Estimates Cut at Morgan Stanley (DOW)

Specialty chemicals maker The Dow Chemical Company ( DOW ) saw its earnings estimates lowered on Wednesday by analysts at Morgan Stanley. The analyst said it has cut its estimates for DOW through 2012, citing negative effects from higher propylene prices and Dow’s recent divestiture of its plastics unit, Styron. Morgan maintained its “Overweight” rating and $43 price target on the stock, however. Dow Chemical shares were mostly flat in premarket trading Wednesday. The Bottom Line We removed shares of DOW from our “recommended” list on Sept.29,2008, when the stock was trading at $33.97. The company has a 2.05% dividend yield, based on last night’s closing stock price of $29.22. The stock has technical support in the $24-$27 price area. If the shares can continue the recent momentum, we see overhead resistance around the $30-$32 price levels. We would remain on the sidelines for now. The Dow Chemical Company ( DOW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Dow Chemical’s Earnings Estimates Cut at Morgan Stanley (DOW)

March 10, 2010   No Comments

American Eagle Q4 Profit Surges 81%, Matching View (AEO)

Teen clothing retailer American Eagle Outfitters ( AEO ) said Wednesday that its fourth quarter profit jumped 81% from last year, matching analyst estimates. The Pittsburgh-based company reported fourth quarter net income of $59.3 million, or 29 cents per share, compared with $32.7 million, or 16 cents per share, in the year-ago period. Excluding one-time charges, adjusted profit was 33 cents per share. Sales rose more than 7% from last year, to $972 million, while same-store sales were up 5%. On average, Wall Street analysts expected a matching profit of 33 cents per share, on lower revenue of $952.3 million. Looking ahead, the company forecast first quarter earnings to range from 15 to 17 cents per share, which would meet or exceed analysts’ current estimates of 15 cents per share for the quarter. American Eagles shares rose $1, or +5.8%, in premarket trading Wednesday. The Bottom Line We had removed shares of AEO from our “recommended” list last Sept.29, when the stock was trading at $15.90. The company has a 2.33% dividend yield, based on last night’s closing stock price of $17.15. The stock has technical support in the $14 price area. If the shares can firm up, we see overhead resistance around the $19-$20 price levels. We would remain on the sidelines for now. American Eagle Outfitters ( AEO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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American Eagle Q4 Profit Surges 81%, Matching View (AEO)

March 10, 2010   No Comments

Starwood Hotels’ Price Target Raised at Bank of America/Merrill Lynch (HOT)

Hotel operator Starwood Hotels & Resorts Worldwide, Inc ( HOT ) saw its price target raised 15% on Wednesday by analysts at Bank of America/Merrill Lynch. The analyst said it now sees shares of HOT reaching $46, up from a prior target of $40. Bank of America/Merrill Lynch noted that Starwood’s real estate holdings could be undervalued by as much as 25%, and maintained its “Buy” rating on the stock. Starwood Hotels shares, which had closed at $41.34 on Tuesday, were mostly flat in premarket trading Wednesday. The Bottom Line Shares of HOT have a dividend yield of .48%, based on last night’s closing stock price of $41.34. The stock has technical support in the $35 price area. If the shares can continue to firm up, we see overhead resistance around the $45 price level. We would remain on the sidelines for now. Starwood Hotels & Resorts Worldwide, Inc ( HOT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Starwood Hotels’ Price Target Raised at Bank of America/Merrill Lynch (HOT)

March 10, 2010   No Comments

Abbott Labs to Buy Facet Biotech; Wins FDA Approval for Cataract Treatment (ABT)

Healthcare giant Abbott Laboratories ( ABT ) said Wednesday that it will acquire drugmaker Facet Biotech for $450 million in cash, and also announced FDA approval for its latest cataract treatment. In pursuant to the deal, Abbott will pay $27 for each Facet share, which represents a 67% premium over Facet’s Tuesday closing price of $16.21. The total purchase price of the deal will actually be around $722 million, which includes $272 million in Facet’s cash and marketable securities. Back in December, Facet rejected a buyout offer of $17.50 per share from Biogen Idec, saying the bid grossly undervalued the company. In a separate announcement, Abbott said that it has received FDA approval for its Tecnis Multifocal 1-Piece intraocular lens, which was developed for cataract patients with and without presbyopia. The lens is implanted in a patient’s eye after the natural lens has been removed. Abbott shares fell 30 cents, or -0.6%, in premarket trading Wednesday. The Bottom Line We have been recommending shares of ABT since Oct.14, when the stock was trading at $49.65. The company has a 3.21% dividend yield, based on last night’s closing stock price of $54.80. Abbott Laboratories ( ABT ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Abbott Labs to Buy Facet Biotech; Wins FDA Approval for Cataract Treatment (ABT)

March 10, 2010   No Comments

Kroger’s Q4 Profit Plunges 27%, Still Beats View (KR)

Supermarket chain operator The Kroger Co. ( KR ) said Tuesday that its fourth quarter profit fell 27% from last year, despite higher sales, but results still beat analyst estimates. The Cincinnati-based company reported fourth quarter net income of $255.4 million, or 39 cents per share, compared with $349.2 million, or 53 cents per share, in the year-ago period. Sales rose 7% from last year, to $18.6 billion, aided by higher fuel sales as a result of gas discounts for regular customers. On average, Wall Street analysts expected a smaller profit of 34 cents per share, on much lower revenue of $17.73 billion. Kroger shares fell 70 cents, or -3.1%, amid a broad market sell-off in premarket trading Tuesday. The Bottom Line We have avoided shares of KR since our early June 2008 coverage began, when the stock was trading at $27.30. The company has a 1.66% dividend yield, based on last night’s closing stock price of $22.90. The shares have technical support in the $19-$20 price area. If the shares can firm up, we see overhead resistance around the $25 price level. We would remain on the sidelines. The Kroger Co. ( KR ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Kroger’s Q4 Profit Plunges 27%, Still Beats View (KR)

March 9, 2010   No Comments

Dick’s Sporting Goods Q4 Profit Narrowly Beats View (DKS)

Sporting goods retailer Dick’s Sporting Goods, Inc. ( DKS ) said Tuesday that it swung to a fourth quarter profit, helped by higher sales and lower costs, edging out analyst expectations. The Pittsburgh-based company reported fourth quarter net income of $67.4 million, or 56 cents per share, compared with a net loss of $105.6 million, or 94 cents per share, in the year-ago period. Sales jumped 11% from last year, to $1.3 billion. On average, Wall Street analysts expected a slightly smaller profit of 55 cents per share, on matching revenue of $1.3 billion. Looking ahead, the company forecast fiscal 2011 earnings of $1.32 to $1.35 per share, which would meet or exceed analysts’ current estimates of $1.32 per share for the year. Dick’s shares fell 63 cents, or -2.5%, amid a broad market sell-off in premarket trading Tuesday. The Bottom Line Shares of DKS are trading right near 52-week highs of $26 a share. The stock has technical support in the $22 price area. If the shares can firm up, we see overhead resistance around the $30 price level. We do not currently rate this non-dividend paying stock, but we do follow the company closely. Dick’s Sporting Goods, Inc. ( DKS ) does not currently pay a dividend. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Dick’s Sporting Goods Q4 Profit Narrowly Beats View (DKS)

March 9, 2010   No Comments