With financial eyes once again on the Federal Reserve, the Dow Jones Industrial Average (DJINDICES: ^DJI ) closed down modestly today, falling 37 points, or 0.2%. The Fed's Open Market Committee is meeting today and tomorrow and will report the results of its eight-times-a-year meeting on Wednesday, giving investors the latest insights as to when the central bank may begin tapering its $85 billion monthly stimulus program.
Today, only one economic report was released -- June pending home sales, which showed a decrease of 0.4% from May, but that number was better than economists' projection of a 1.7% drop. Increasing mortgage rates, which have gone up as the Fed threatens to cut its Treasury bond purchases, are putting pressure on the housing recovery. Still, sales are just a hair off the six-year high it hit in May.
On the Dow today, Caterpillar (NYSE: CAT ) led all comers, finishing up 1.2% after announcing it will buy back $1 billion of its shares from French bank Societe Generale, most of which it will purchase immediately. With the global mining industry in a down cycle, Caterpillar has struggled this year, falling last week after a forgettable earnings report that included a guidance cut. The share repurchase announcement would seem to indicate that management sees the stock as undervalued.
5 Best Penny Stocks To Watch For 2015: 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 James Brumley]
CSCO stock might be one of the market’s dark-horse stories of 2014; the dividend yield is the icing on the cake.
Dividend Stocks to Buy: Tupperware Brands (TUP)Dividend Yield: 3.2%
Top 10 Undervalued Companies 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 Ben Levisohn]
Morgan Stanley’s Ole Slorer and Igor Levi explain why�Schlumberger (SLB) could gain more than 70%:
Getty ImagesSchlumberger�guided earnings to grow at a 17-20% [compound annual growth rate] to $9-10/sh by 2017, ahead of our current estimate of a 15% [compound annual growth rate]. However, the company�� estimates are based on just a 6% industry spending growth level, which is about in line with our long-term expectations of 4-6%.
Schlumberger has historically converted 30% of its EBITDA or 75% of [earnings per share] into free cash flow, meaningfully above that of its peers, while trading at a�free cash flow yield of 2-4%.� Currently shares are trading at the high-end of the range making valuation compelling. Applying a conservative 3.5% yield to the company�� 2017 EPS estimate of $9-10/sh, its 75%�free cash flow conversion and discounting it back 2 years at 10%, we arrive at our new $168 PT. If�Schlumberger is able to bring this growth 6-12 months forward and its�free cash flow yield approaches its historical 3% average, we arrive at our $200 bull case.
While Schlumberger has a free-cash-flow yield of about 3.5%, Cameron International’s (CAM) and Dril-Quip’s (DRQ) are just over 3% and�FMC Technologies‘ (FTI) is just under 3%. Halliburton (HAL) has a free-cash-flow yield of just over 1%.
Shares of Schlumberger have gained 2.1% to $116.19 at 2:06 p.m., while Cameron has doped 0.78% to $66.71, Dril-Quip has fallen 1.1% to $105.62, FMC Technologies has declined 2.2% to $60.20 and�Halliburton is up 0.2% at $69.57.
- [By Richard Moroney, Editor, Dow Theory Forecasts]
Founded in 1926, Schlumberger (SLB), operates in all major facets of oilfield services, essentially covering the lifespan of reservoirs that house natural gas and oil.
- [By Monica Wolfe]
Schlumberger NV (SLB)
Manning & Napier Advisors��largest position is in Schlumberger where they maintain 8,882,428 shares. Their position in Schlumberger represents 3.6% of their total portfolio and 0.67% of the company�� shares outstanding. During the first quarter the fund made a reduction of -3.32% by selling 305,133 shares of the company�� stock. They sold these shares in the first quarter price range of $86.16 to $97.96, with an estimated quarterly price of $90.27. Since then the price per share is up approximately 13.1%. Manning & Napier�� historical holding history:
Top 10 Undervalued Companies For 2014: 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 Mani]
Dollar Tree, Inc. (NASDAQ:DLTR) is one of the companies that are set to exploit the ongoing trend of consumers' increasing focus on value with significant opportunity to grow its store base, and expand margins.
- [By Ben Levisohn]
Family Dollar (FDO) became a must-have after Carl Icahn announced a 9.4% stake in the bargain retailer–and so did competitors like Dollar General (DG) and Dollar Tree (DLTR).
- [By Dan Moskowitz]
The shiniest dollar
Many investors and analysts like to debate which dollar store offers the best investment opportunity. The truth is that Dollar General, Dollar Tree Stores (NASDAQ: DLTR ) , and Family Dollar Stores (NYSE: FDO ) are all likely to be quality long-term investments. - [By Victor Reklaitis]
Today�� movers & shakers: Retailers have dropped in the wake of disappointing quarterly results or outlooks. Target Corp. (TGT) �was down 4% after posting weaker margins and earnings at its U.S. business, while Dollar Tree Inc. (DLTR) �dropped 4% after its earnings fell in the third quarter. Read more in the Movers & Shakers column.
Top 10 Undervalued Companies 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 Matt Thalman]
Another Dow stock that likely fell on the news from China was Caterpillar (NYSE: CAT ) , which ended the day down 0.1%. Although today's announcement clearly didn't have a major affect on either caterpillar or Alcoa, it did add fuel to the bearish sentiment investors have had with each company this year. Caterpillar is down 7.24% year to date, while Alcoa has lost 8.06%. These may not seem like massive declines, but when we add in the fact that the Dow itself is up 12.94% in 2013, the idea that Alcoa and Caterpillar have been beaten by nearly 20% over just the past six months is rather shocking.
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