FedEx Corporation (FDX) surged by 6.2% to $148.95, after posting strong results and beating consensus estimates. The following day, stock has cooled down by correcting marginally by 0.9%. This article discusses the positives from the results and the reason for considering FedEx undervalued at these levels. Therefore, I expect that the stock will continue to rally.
Rally On Strong Results
For Fiscal Year 2014, FedEx reported a strong set of results and the highlight for me was the margin expansion and the EPS growth. The company�� operating margin increased by 30 basis points to 7.6% in FY14 from 7.3% in FY13.
The EPS growth was also a strong 8.3% with 2014 EPS at $6.75 as compared to $6.23 EPS in FY13. For FY14, FedEx acquired 36.8 million shares through share repurchase program and this helped the company to boost the EPS apart from the margin expansion.
From a financial flexibility perspective, the company closed the year with a strong cash position of $2.9 billion and an operating cash flow of $4.2 billion. With FedEx incurring a capital expenditure of $3.5 billion for FY14, the company had a strong free cash flow.
Top Consumer Stocks To Invest In Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Ethan Roberts]
Shares of Dollar Tree (DLTR) were substantially lower this morning after the company reported third-quarter earnings. Dollar Tree earnings tallied 59 cents per diluted share of DLTR stock, which missed analyst estimates by two pennies.
- [By Nickey Friedman]
Dollar Tree (NASDAQ: DLTR ) continues to impress each quarter with robust sales, same-store sales growth, and diluted earnings-per-share increases. This dollar chain credits in large part a budget-conscious and cash-strapped consumer filling up its stores looking for bargains. Further growth seems like a no-brainer, but there are two things to watch for that could become speed bumps on its road to further riches.
Top 5 Undervalued Companies To Own For 2014: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By Jonas Elmerraji]
Most of the selling last quarter took place in the energy sector -- and within it, no single stock got sold off as hard by funds as Schlumberger (SLB). All told, funds unloaded more than 4.57 million shares of the oil field servicer, a stake that's worth close to $430 million at current price levels. So, should you sell too? Not so fast.
Schlumberger is the biggest oil service company on the planet. The firm's revenues come from a menu of specialized field services such as seismic surveys and well drilling and positioning. In a nutshell, SLB's job is to pull oil out of the ground as efficiently as possible -- and with oil prices in freefall, SLB's value proposition matters more now than it did when crude was trading in the triple-digits. Oil firms turn to Schlumberger because the tasks they need to accomplish are too nuanced or proprietary to pull off in-house. And that gives the firm a deep economic moat.
Another part of SLB's deep moat comes from boots on the ground. Because Schlumberger is on-site at its clients' well locations, the firm is able to sell more complementary services at one time. The energy sector has gotten shellacked in the last few months, and frankly, that downward pressure isn't showing any signs of letting up. That said, SLB's revenues don't ebb and flow exactly in step with crude prices (unlike its clients), and shares look oversold here.
- [By Vanina Egea]
To explore and produce, a great investment is required in tools, and one of the leading equipment suppliers is Schlumberger (SLB). A key to remaining on top of the industry is innovation, and of that the company has a whole load. Throughout 2014 alone, the firm has introduced a microseismic surface acquisition system, a new fracturing technique for unconventional reserves, launched a degradable alloy technology to improve well productivity, a multilayer bed boundary detection service for clastic and carbonate fields, and a rotary steerable system that increases directional control and drilling efficiency. These product introductions have been done during the first quarter of 2014, making a strong statement about the company�� research and development pipeline. Gurus, however, mostly dropped the stock during the end of 2013. Let us see whether you can take advantage of the dumping and take a large position with long-term prospects.
- [By Jim Jubak]
But it just doesn't seem to matter for Schlumberger (SLB). Schlumberger is a member of my Jubak's Picks portfolio.
On January 17, the oil services and technology company reported fourth quarter earnings of $1.35 a share, beating Wall Street estimates by two cents a share. Earnings grew by 29.8% year over year.
- [By reports.droy]
In a recent article from the Financial Times, GE's Oil and Gas division head Lorenzo Simonelli stated that the company had started to become a major player in the oil and gas industry, taking market share from the "big four" in the industry- Schlumberger (SLB), Halliburton (HAL), Weatherford (WFT) and Baker Hughes (BHI). Although it still remains smaller than the big four it does have a promising future ahead.
Top 5 Undervalued Companies To Own For 2014: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Jeremy Bowman]
Caterpillar (NYSE: CAT ) took the cake today among Dow stocks, gaining 2.3%, as the construction-equipment maker bumped up its quarterly dividend 15%, to $0.60, or a 2.9% yield. It was the company's third consecutive annual dividend increase and, on a bullish day, that was enough to push the macro-economically sensitive stock up over 2%. Caterpillar has been one of the worst-performing on the Dow this year as it has actually fallen 5% in 2013. Given its sluggish performance recently, the stock may be due for a gain.
- [By Michael Calia]
Among the companies with shares expected to actively trade in Monday’s session are Caterpillar Inc.(CAT), Apple Inc.(AAPL) and Rayonier Inc.(RYN)
- [By DAILYFINANCE]
Stan Honda, AFP/Getty ImagesPassersby in front of the New York Stock Exchange on Tuesday, Christmas Eve. NEW YORK -- Stocks rose in a holiday-shortened trading day Tuesday, helped by a report that showed American companies were investing in their businesses at the fastest pace since January. Markets were open for just half a day ahead of the Christmas holiday, and trading volume was extremely light. Roughly 1.3 billion shares changed hands on the New York Stock Exchange, a third of what is traded on a regular day. It was the slowest day of the year. Materials and industrial stocks rose more than the rest of the market after the government reported that orders for long-lasting manufactured products rose 3.5 percent in November, more than economists expected. Core capital goods, a category that tracks business investment, jumped 4.5 percent, the biggest gain since January. DuPont (DD) rose $1.09, or 2 percent, to $63.83 and construction equipment maker Caterpillar (CAT) gained 95 cents, or 1 percent, to $90.91. The Dow Jones industrial average (^DJI) rose 62.94 points, or 0.4 percent, to 16,357.55. The Standard & Poor's 500 index (^GPSC) rose 5.33 points, or 0.3 percent, to 1,833.32 and the Nasdaq composite (^IXIC) rose 6.51 points, or 0.2 percent, to 4,155.42. Stocks have been rising steadily since last Wednesday, when the Federal Reserve surprised investors by announcing it was cutting back its bond-buying program, citing an improving economy. The Fed said it will reduce its bond purchases to $75 billion a month beginning in January, down from $85 billion. The last five days of gains have added to what has been a historic year for stock market investors. The S&P 500 index is up 28.6 percent for 2013, or 30.9 when dividends are included, its best year since 1997. With four trading days left in the year, many traders expect stocks to continue higher until New Year's Eve. "Nothing has derailed this market this year, even with all the bad headlin
- [By Dan Carroll]
Investing in China represents far more of a risk than the likes of JPMorgan, despite whatever hurdles regulators can throw at the big bank. Despite strong growth in past years that has propelled China's economy to the second-largest in the world, the bubbling housing market, rising middle class, and poor infrastructure climate will challenge the nation in the coming years. If investing in China's growth story tempts your hand, it's better to find a buy among the strongest global companies betting on the leading emerging market's growth. Industrial giant Caterpillar (NYSE: CAT ) has hitched much of its future on China, and while slow sales have hit Caterpillar hard lately, this is one stock that's poised to capitalize in a significant way of Chinese economic growth picks up in the future. At a cheap P/E, Caterpillar -- which sits atop the cyclical industrial industry -- is a safe pick to invest indirectly in China.
Top 5 Undervalued Companies To Own For 2014: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Oliver Pursche]
European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.
- [By Jonathan Berr]
Multilevel marketing (MLM) groups such as Herbalife operate through independent sales representatives, who earn money both through the sales of product and by recruiting other people to join their team. This business model — which is used by scores of companies, including�Pampered Chef, which is owned by Warren Buffett’s Berkshire Hathaway (BRK.B), Tupperware (TUP) and Mary Kay Cosmetics — is legal provided that actual products are sold.
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