Tag: upgrade

Kellogg Upgraded to “Outperform” at Wells Fargo (K)

Cereal maker Kellogg Company ( K ) on Friday saw its rating and price target boosted on Friday by analysts at Wells Fargo. The firm said it upgraded K from “Market Perform” to “Outperform,” while boosting its valuation range from $51-$53 to $58-$60. That new target implies up to a 14% upside to the stock’s Thursday closing price of $52.52. A Wells analyst commented, “We expect Kellogg’s shares to appreciate as earnings surprise to the upside driven by a faster-than-expected recovery in its core N.A. retail cereal business. Kellogg enters 2011 with a 25% increase in new products versus 2009-2010 levels, increased investment in its supply chain, easy comparisons and list price increases already implemented to help cover surging input costs…our 2011E EPS to $3.50 from $3.40 (versus $3.46 consensus) and our 2012 estimate from $3.75 to $3.85 (versus $3.79 consensus) as a result.” Kellogg shares posted modest gains in premarket trading Friday. The Bottom Line We have been recommending shares of Kellogg ( K ) since Nov.3, 2010, when the stock was trading at $49.69. The company has a 3.08% dividend yield, based on last night’s closing stock price of $52.52. Kellogg Company ( K ) 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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CBS Upgraded to “Buy” at Deutsche Bank (CBS)

Filed in CBS, dividend, earnings, EPS, G 20, Gold, Gold Bullion prices, o, shares, target, upgrade by on January 31, 2011 0 Comments

Mass media giant CBS Corporation ( CBS ) on Monday saw its rating, price target, and earnings estimates all boosted by analysts at Deutsche Bank. The firm said it upgraded CBS from “Hold” to “Buy” while lifting its price target from $18 to $23. That new target implies a 19% upside to the stock’s Friday closing price of $19.28. A Deutsche analyst commented, “CBS’s shares have had a terrific two years given the company’s high exposure to advertising and high financial leverage at the trough (3.5x). Nevertheless, from here we see 19% upside to $23, worthy of a Buy rating. We believe the street is too low relative to strong 1H11 ad pacings, the CBS Network should see 10% upfront CPM gains, margin efforts are kicking in, int’l syndication is growing > 10%, and M&A risk is reduced given the large buyback plan. Stock at 8.6x ’11E FCF and 7.0E ’12E, too low, in our view.” Continuing, “After reviewing 2011 by qtr, we are raising our EBITDA estimate by $91m to $2.791b (+17% yoy), EPS by $0.07 to $1.51 (+37% yoy, and vs. street’s $1.38) and FCF by $219m to $1.504b (-17% yoy). Our FCF/share estimate is now $2.24 for ’11E, growing to $2.74 in ’12E, $2.92 in 13E, and $3.42 in ’14E.” CBS shares were mostly flat in premarket trading Monday. The Bottom Line Shares of CBS Corporation ( CBS ) have a 1.04% dividend yield, based on Friday’s closing stock price of $19.28. The stock has technical support in the $16-$17 price area. If the shares can continue to firm up, we see overhead resistance around the $22-$23 price levels. CBS Corporation ( CBS ) 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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Verizon Now Rated a “Conviction Buy” at Goldman Sachs (VZ)

Telecom giant Verizon Communications Inc. ( VZ ) on Wednesday saw its shares added to Goldman Sachs’ prestigious “Conviction Buy” List. The firm also set a $42 price target on VZ, which implies a 17% upside to the stock’s Tuesday closing price of $35.79. Goldman also adjusted its 2011 full-year earnings estimates for the company to EBITDA of $35.6 billion on $111.3 billion in revenue. It also expects 2011 and 2012 profits of $2.35 and $2.82 per share, respectively. Those estimates are well above the Wall Street consensus. The analyst cited Verizon’s strong performance in its wireless segment for the upgrade. Verizon shares rose 46 cents, or +1.3%, in premarket trading Wednesday. The Bottom Line We have been recommending shares of Verizon ( VZ ) since Oct.10, 2008, when the stock was trading at $25.93. The company has a 5.45% dividend yield, based on last night’s closing stock price of $35.79. Verizon Communications Inc. ( VZ ) 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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How to Profit as Your Food Bill Explodes

I hate to say I told you so. But with food companies no longer able to absorb the margin drops, and being forced to pass higher costs to the consumer… I told you so. General Mills, Kraft and Kellogg, for examples are already hiking prices… and it’ll get a lot worse, as we said in this Wealth Daily article: If you thought your $200 weekly grocery bill was bad, just wait. It’s about to jump 20% to 30% next month, as the Fed embraces another round of quantitative easing to combat global currency manipulation and devaluation. But that very move could do more harm than good. It’s likely to create another food price bubble, similar to what we saw in 2007-2008. Three years ago, wheat prices skyrocketed even as the consumption-to-stock ratio warranted falling prices… Bread was up to $1.32 at the time — a 32% rise in less than three years… The price of eggs rocketed 50%. Overall, food prices rose more than 5% and the average family’s grocery bill rang in $80 higher. And we’re going to see it happen again, as historically high corn prices drive the cost of beef to twenty-five-year highs… The sad fact is, this situation has no chance of improvement if the Fed floods the global economy with more dollars. What the move will do is further damage the U.S. economy Apparently, we’re not paying enough for food, energy, or clothing… It doesn’t matter that 20% of Americans are unemployed or under-employed. It doesn’t matter that, since the Fed last spoke, gold and other commodities have spiked… Crude oil has already soared some 27%. Wheat is up 84%. Sugar is up 55%. Soybeans are up some 24%. And corn just rocketed another 15% in two days — the biggest move in recent history, and a move that prompted some to warn of another food crisis. The meat industry just warned of a game-changer in pricing and profitability; the cost and contraction of corn supplies could mean higher prices for…

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Market Wrap-Up for Jan.21 (GE, COF, STI, FCX, BTU, MCD, JNJ, more)

We sometimes hear from dividend investors who simply over-analyze their investments. For instance, dividend stock prices are automatically negatively adjusted on the ex-dividend date to reflect the upcoming payout. This practice, put into place by the exchanges themselves, prevents people from “gaming” the dividend system. Investors sometimes panic at these price drops, despite them being a natural part of dividend investing. A one- or two-point drop in a high-quality dividend stock, especially as a result of an ex-dividend adjustment, is nothing to be concerned about! Now if the stocks gets down 20-25% off its 52-week high, then and only then you may have something to worry yourself with. This illustrates the danger of focusing on the short term, which usually causes investors to start trying to time the markets. Trying to time every movement perfectly is trading, not investing, so forget about looking for immediate price gains as soon as you purchase a security! Before we look at today’s market action, just a quick note to check out today’s new recommendation changes in the link below if you did not read the e-mail alert we sent out earlier. The market got off to a decent start on the back of solid earnings results from General Electric ( GE ). We also saw positive reactions to financial plays SunTrust Banks ( STI ), Capital One Financial ( COF ), and BB&T Corp ( BBT ). Wall Street analyst upgrades also helped lift shares of Eaton Corp ( ETN ) and Parker-Hannifin ( PH ). Sellers hit commodity plays once again, with Freeport McMoran ( FCX ), Walter Energy ( WLT ), and Peabody Energy ( BTU ) taking a hit. I’m hearing from some gold and silver investors about the recent pain they have seen with the recent price drop. I don’t see any particular long-term worries at this point, but with signs of the economy getting its mojo back, the case for the metals may not be as seductive as it has been. Overall, it may be a good time to get some gold stock candidates ready to examine on healthy pullbacks. I have been consistently saying here that the metals could be in for a pullback, and urged caution back in late November, so hopefully anyone that was sitting on nice profits was able to ring the register at higher levels. I still believe that this generation of investors is not afraid of looking at commodities for a part an investment portfolio, so I doubt that we will go back to long-term periods of gold and silver languishing. We finish up …

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Eaton Corp Upgraded to “Outperform” at Robert Baird (ETN)

Power management specialist Eaton Corporation ( ETN ) on Friday caught a big upgrade from analysts at Robert Baird. The firm said it boosted its rating on ETN from “Neutral” to “Outperform” with a $130 price target. That target implies a 30% upside from the stock’s Thursday closing price of $100.21. A Robert Baird analyst noted the company should see higher spending over the next few quarters. Eaton Corp shares rose $1.99, or +2%, in premarket trading Friday. The Bottom Line We have been recommending shares of Eaton Corp ( ETN ) since Nov.24, when the stock was trading at $95.81. The company has a 2.32% dividend yield, based on last night’s closing stock price of $100.21. Eaton Corporation ( ETN ) 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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Archer Daniels Midland Upgraded to “Outperform” at Credit Suisse (ADM)

Filed in dividend, Gold Investment, o, outperform, shares, target, upgrade by on January 19, 2011 0 Comments

Food products giant Archer Daniels Midland Company ( ADM ) on Wednesday caught a big upgrade from analysts at Credit Suisse. The firm said it boosted its rating on ADM from “Neutral” to “Outperform,” noting the company will likely see higher margins as a result of rising grain prices. Credit Suisse also raised its price target for ADM from $37 to $40, which implies a 19% upside to the stock’s Tuesday closing price of $33.72. ADM shares rose 46 cents, or +1.4%, in premarket trading Wednesday. The Bottom Line We have been recommending shares of Archer Daniels Midland ( ADM ) since Jan.12, when the stock was trading at $32.21. The company has a 1.78% dividend yield, based on last night’s closing stock price of $33.72. Archer Daniels Midland Company ( ADM ) 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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Comcast Upgraded to “Buy” at Collins Stewart (CMCSA)

Filed in Comcast, dividend, Gold Investing, Gold Investment, o, shares, target, upgrade by on January 19, 2011 0 Comments

Cable TV and Internet provider Comcast Corporation ( CMCSA ) on Wednesday caught a big upgrade from analysts at Collins Stewart. The firm said it upgraded CMCSA from “Hold” to “Buy” with a $32 price target. That target implies a potential upside of 40% to the stock’s Tuesday closing price of $22.78. A Collins Stewart analyst said the company should perform better following the approval from federal regulators on CMCSA’s acquisition of entertainment giant NBC Universal. Comcast shares rose 31 cents, or +1.4%, in premarket trading Wednesday. The Bottom Line Shares of Comcast ( CMCSA ) have a 1.66% dividend yield, based on last night’s closing stock price of $22.78. The stock has technical support in the $20 price area. If the shares can firm up, we see overhead resistance around the $24-$26 price levels. Comcast Corporation ( CMCSA ) 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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McDonald’s Upgraded to “Outperform” at RBC Capital (MCD)

Fast food superpower McDonald’s Corporation ( MCD ) on Tuesday caught an upgrade from analysts at RBC Capital Markets on a valuation call. The firm said it upgraded MCD from “Sector Perform” to “Outperform,” noting the company is a good way to play rising inflation. RBC Capital also set an $85 price target from MCD, which implies a 15% upside to the stock’s Friday closing price of $74.06. McDonald’s shares rose 74 cents, or +1%, in premarket trading Tuesday. The Bottom Line We have been recommending shares of McDonald’s ( MCD ) since Aug.12, 2009, when the stock was trading at $56.02. The company has a 3.29% dividend yield, based on last night’s closing stock price of $74.06. McDonald’s Corporation ( MCD ) is a “Recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.6 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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AvalonBay Upgraded to “Buy” at Goldman Sachs (AVB)

Multifamily dwelling REIT AvalonBay Communities, Inc. ( AVB ) on Wednesday caught a big upgrade from analysts at Goldman Sachs. The firm said it upgraded AVB from “Neutral” to “Buy” while boosted its price target from $98 to $121. That new target implies an 11% upside to the stock’s Tuesday closing price of $109.16. Goldman Sachs cited the company’s reasonable valuation in relation to other REITs, and noted it should benefit greatly on improvements in the current rent cycle. AvalonBay shares rose 89 cents, or +0.8%, in premarket trading Wednesday. The Bottom Line We have been recommending shares of AvalonBay Communities ( AVB ) since Nov.30, 2010, when the stock was trading at $110.12. The company has a 3.27% dividend yield, based on last night’s closing stock price of $109.16. AvalonBay Communities, Inc. ( AVB ) 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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Verizon Upgraded to “Buy” at Goldman Sachs (VZ)

Telecom giant Verizon Communications Inc. ( VZ ) on Wednesday saw its rating and price target boosted by analysts at Goldman Sachs. The firm said it upgraded VZ from “Neutral” to “Buy” while raising its price target from $34 to $42. That new target implies a 19% upside to the stock’s Tuesday closing price of $35.36. Goldman called VZ its top large-cap pick across Comm Services, and noted it expects the stock to continue to outperform in 2011. The analyst expects wireless service revenue growth to be a main catalyst for the company. Verizon shares rose 34 cents, or +1%, in premarket trading Wednesday. The Bottom Line We have been recommending shares of Verizon ( VZ ) since Oct.10, 2008, when the stock was trading at $25.93. The company has a 5.51% dividend yield, based on last night’s closing stock price of $35.36. Verizon Communications Inc. ( VZ ) 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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Hewlett-Packard Upgraded to “Buy” at UBS (HPQ)

Filed in dividend, earnings, Gold Investment, Hewlett Packard, o, shares, target, ubs, upgrade by on January 11, 2011 0 Comments

PC and printer maker Hewlett-Packard Company ( HPQ ) on Tuesday saw its rating, price target, and earnings estimates all boosted by analysts at UBS. The firm said it upgraded HPQ from “Neutral” to “Buy” with a $52 price target. That target represents an expected 16% upside to the stock’s Monday closing price of $44.86. UBS also raised its earnings estimates for the company, noting that business spending should improve in 2011. Hewlett-Packard shares rose 54 cents, or +1.2%, in premarket trading Tuesday. The Bottom Line Shares of Hewlett Packard ( HPQ ) have a .71% dividend yield, based on last night’s closing stock price of $44.86. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $48 price level. Hewlett-Packard Company ( HPQ ) 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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