It was a mixed day for stocks as blue chips managed to squeak out a gain and small-caps got crushed ahead of tomorrow’s Fed announcement.
Keith Bedford for The Wall Street Journal
The S&P 500 fell 0.2% to 2,015.93 today, while the Dow Jones Industrial Average rose 22.40 points, or 0.1%, to 17,251.53. The Nasdaq Composite fell 0.5% to 4,728.67. The Russell 2000 tumbled 1.6% to 1,066.67, the first time since Sept. 2011 that the small-company benchmark fell by at least 1.5% and the Dow Jones Industrial Average finished higher.
The folks at Bespoke Investment Group consider the Russell 2000′s underperformance versus the S&P 500 this year:
Including today, the S&P 500 is down 1.6%, while the Russell 2000 is down 6.1%. Todays underperformance in small caps is just a continuation of what has been an extremely consistent trend of daily underperformance this year.
Best Blue Chip Stocks To Invest In 2018: Liberty Interactive Corporation(LVNTA)
- [By Lisa Levin]
Shares of General Communication, Inc. (NASDAQ: GNCMA) got a boost, shooting up 63 percent to $33.43 after Liberty Interactive Corporation (NASDAQ: LVNTA) announced plans to acquire General Communication for $1.12 billion.
Best Blue Chip Stocks To Invest In 2018: Monotype Imaging Holdings Inc.(TYPE)
- [By Lisa Levin]
Shares of Monotype Imaging Holdings Inc. (NASDAQ: TYPE) were down around 12 percent to $20.90 after the company posted downbeat quarterly earnings.
Best Blue Chip Stocks To Invest In 2018: Canterbury Park Holding Corporation(CPHC)
- [By Sally Jones]
Canterbury Park Holding Corporation (CPHC) Market Cap $46.35 Million
Canterbury Park Holding Corporation is up 2% over 12 months. The company has a market cap of $46.35 million; its trades around $11.16 with a P/E ratio of 59.30 and a P/B of 1.70.
Best Blue Chip Stocks To Invest In 2018: URS Corporation(URS)
- [By Ben Levisohn]
Fidelty’s John Mirshekaritook a look at URS(URS) today at the Value Investing Congress.His takeaway: The stock could double in two years.
Agence France-Presse/Getty Images
His analysis started with URS’s use of its free cash. During the past, it hasn’t been pretty. They spent 6.3 billion on eight acquisitions, they’ve bought companies at valuations higher than own stock and return-on-equity has dropped from high teens to just 6%.
The problem hasn’t been its business: Its return on tangible capital is 17%. Instead, the problem is that its management hasn’t maximized value through capital allocation. URS has lowest valuation: 9x 2013 cash earnings in its industry.
Part of the problem: Management incentives are based on net income. This year, however, relative total shareholder return was added., something Mirshekari calls”a step in the right direction.” In May, URS filed an amended proxy which says it will look to change incentives from net income to return on equity and earnings per share. More importantly, it said acquisitions would end.
If all goes right, URS could double in two years,Mirshekari says, comparing it to AECOM Technology (ACM).
Looks a lot like AECOMM, which did something similar and rallied.
- [By Ian Wyatt, Publisher & Chief Investment Strategist, Wyatt Investment Research]
Fund manager John Mirshekari, of the Fidelity Low-Priced Stock Fund, recommended shares of URS (URS), an engineering and construction contractor.