Hot Safest Stocks To Invest In Right Now

Twitter Inc. (TWTR) is set to report first quarter fiscal 2016 earnings results after the closing bell Tuesday. The focus will be on its user growth and to what extent the beleaguered social media company has been able to attract more monthly users not only for the just-ended quarter, but for the rest of the year.

In other words, even with an earnings beat Tuesday on better than average revenue, TWTR stock might still get punished unless its guidance suggests that its user base has stabilized. At the same time, CEO and co-founder Jack Dorsey must sell analysts on the possibility that his company is ready to move from being just a “work in progress” to sustainable/predictable growth. (See also: Twitter Still an Adolescent After 10 Years.)

Hot Safest Stocks To Invest In Right Now: SunTrust Banks, Inc.(STI)

Advisors’ Opinion:

  • [By Jose Pagliery]

    This issue was brought up in court papers filed in January by headphone maker Sleek Audio, SunTrust Bank (STI) and 50 Cent’s ex-girlfriend Lastonia Leviston, three claimants in the bankruptcy case who say they’re owed a combined $29 million.

  • [By Ben Levisohn]

    Bank of America (BAC) is our top bank idea – expectations are lower with shares at ~0.9x TBV, its balance sheet is highly asset sensitive (~100 bps parallel increase in rates adds ~$6B to NII or ~$0.35 to EPS), and Bank of America should be a relative winner in CCAR (total payout ratio should rise closer to ~60% vs. ~40% in 2015 planning period). We continue to like Comerica (CMA) given its M&A optionality over the intermediate term (takeout price likely closer to ~$60) but would use market volatility to add on weakness. It is harder to find value in the regional banks (examples: Citizens Financial Group (CFG), Regions Financial (RF), SunTrust Banks (STI), Zions Bancorp (ZION)), and the asset-sensitive regionals look more vulnerable if sentiment weakens. We remain comfortable with the Underperform on M&T Bank (MTB) which trades at ~13.5x 2017E EPS vs. the ~11x peer median.

  • [By Ben Levisohn]

    We believe investors should continue to own three types of bank stocks: “Return of Capital (RC) Stocks”, “Risk On (RO) Stocks”, and “Multiple Revaluation (MR) Stocks.” RC stocks include M&T Bank (MTB), PNC Financial Services Group (PNC), and SunTrust Banks (STI); RO stocks include Bank of America, Popular (BPOP), Citigroup, JPMorgan, and KeyCorp (KEY); and MR stocks include BB&T (BBT) and PNC Financial Services Group (PNC).

  • [By Shauna O’Brien]

    On Thursday, financial services company SunTrust Banks, Inc. (STI) was upgraded to “Buy” at Compass Point.

    The firm raised its rating on STI from “Neutral” to “Buy,” and has given the company a $38 price target. This price target suggests a 12% upside from the stock’s current price of $33.26.

    Analyst Kevin Barker commented: “We believe these headwinds are already priced into the stock and the bank stands to be one of the biggest beneficiaries of a pickup in CRE and residential lending.”

    “In addition, we believe the company is getting very little credit for cost save initiatives and would screen as being more asset sensitive if it were to let its swap portfolio run-off. Add in the potential for significant capital return following the March 2014 CCAR and we believe STI is setting up to outperform in the next year,” added the analyst.

    SunTrust shares were up 15 cents, or 0.45%, during pre-market trading Thursday. The stock is up 17% YTD.

Hot Safest Stocks To Invest In Right Now: Penn West Petroleum Ltd(PWE)

Advisors’ Opinion:


    This experienced team appeared to have what it takes to lead acquiring Penn West Petroleum (PWE) through a crisis. And the group has taken bold steps to deleverage the company, selling assets while cutting expenses and eliminating the dividend.

Hot Safest Stocks To Invest In Right Now: Marathon Petroleum Corporation(MPC)

Advisors’ Opinion:

  • [By Ben Levisohn]

    JPMorgan analyst Phil Gresh and team explain what they got wrong about Marathon Petroleum (MPC), as they cut its rating to Neutral from Overweight following yesterday’s disastrous financial results from MPLX (MPLX):

    Gerald Herbert/Associated Press

    We (somewhat painfully) downgradeMarathon Petroleum to Neutral from Overweight, cut our Dec-16 price target to $44 (from $62) and remove the stock from our Analyst Focus List. When we upgradedMarathon Petroleum back in August, our view had been that it was being (1) given no credit for the high likelihood that the MPLX/MWE deal would close and related GP cash flow potential, and (2) overly punished for a weak refining 2Q result. The stock subsequently rallied into the analyst day, as these two catalysts played out. However, at the analyst day, which ended up being the peak stock price, capex guidance was well above expectations and shares began to fade. We defended the stock (click here) on a cheap sustaining FCF yield and a favorable longer-term growth opportunity set, but noted that MPLX was the key to the story (retrospectively, we may have been suffering from some thesis creep). Since that time, the MLP market has further melted down and MPLXs pro forma volume g rowth opportunities have slowed, driven by weaker fundamentals at the recently acquired MWE. We figured there was some risk that MPLX could cut its distribution growth outlook; however, we thought that this was largely embedded in MPC shares at $40. We did not anticipate that management would halve its 2016 growth outlook and defer all 2017+ commitments, leading to a more than halving of our GP distribution outlook for 2019E (now only $460mm, down from $1.06B). Making matters worse,Marathon Petroleum may now be on the hook to provide even more support to MPLX (we estimate up to $500mm in 2016E beyond the marine dropdown), just to keep MPLX at ~4x leverage (assuming no additional reductions in the EBITDA targets). Finally, on a conso


    Marathon Petroleum Corporation (MPC) is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio, explains dividend reinvestment expert Vita Nelson, editor of DirectInvesting.

  • [By Shauna O’Brien]

    Credit Suisse announced on Tuesday that it has cut its rating on Marathon Petroleum Corp (MPC).

    The firm has downgraded MPC from “Outperform” to “Neutral” as refining capture continues to be low.

    Marathon Petroleum shares were mostly flat during pre-market trading Tuesday. The stock is up 10% YTD.

  • [By Garrett Cook]

    Lastly, Citi says Marathon Petroleum (NYSE: MPC) and MPLX LP (NYSE: MPLX) remain Buy rated the heels of benefits derived from strong product demand and the NGL recovery.

Hot Safest Stocks To Invest In Right Now: Blackrock Global(BOE)

Advisors’ Opinion:

  • [By Robert Rapier]

    Whiting Petroleum (WLL) is one of Continental’s biggest competitors in the Bakken. Whiting is the second-largest oil producer in North Dakota, averaging 82,500 barrels of oil equivalent (BOE) of production in 2012, across more than 700,000 acres of leased land.

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