The Federal Reserve raised its target of the federal-funds rate, the interest rate banks charge each other for overnight loans, by a quarter point to a range of 0.75% to 1%, and thats great news for Warren Buffetts Berkshire Hathaway (BRK.B) and its shareholders. As a bondholder, owner of insurance companies and an investor in big banks, Berkshire profits from rising interest rates in a number of ways, says David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business who studies Buffett and is a Berkshire investor.
See Also: 6 Stocks That Stand to Gain From Fed Rate Hikes
“Since Berkshire currently has about $85 billion in cash invested primarily in short-term Treasuries, a [one percentage point] increase in short-term interest rates results in an additional income of $850 million per year for Berkshire,” Kass says. “Furthermore, Wells Fargo, one of Berkshire’s largest equity investments, will benefit from an increase in earnings as interest rates rise.
Top 10 Warren Buffett Stocks To Invest In Right Now: ThyssenKrupp AG (TYEKF)
- [By Matthew DiLallo]
In addition, the company announced that it has agreed to acquire a steel plant in Brazil from ThyssenKrupp (NASDAQOTH:TYEKF) for $1.3 billion. While that plant has had its share of problems in the past, Ternium is getting it for a good value, and it has upside potential. The company paid slightly less than five times EBITDA (earnings before interest, taxes, depreciation, and amortization) for the facility. As the following chart shows, that’s below the value that steel-company stocks trade for these days:
Top 10 Warren Buffett Stocks To Invest In Right Now: Canadian National Railway Company(CNI)
- [By Brett Hershman]
The Swiss bank said it was raising first-quarter estimates on four of the six rails it covers, with updated estimates above consensus on Canadian National Railway (USA) (NYSE: CNI), CSX Corporation (NASDAQ: CSX) and Kansas City Southern (NYSE: KSU), which is seen to show upside against low expectations.
- [By Monica Gerson]
Canadian National Railway (USA) (NYSE: CNI) is estimated to post its quarterly earnings at $0.92 per share on revenue of $3.08 billion.
Container Store Group Inc (NYSE: TCS) is expected to post its quarterly earnings at $0.21 per share on revenue of $230.53 million.
Top 10 Warren Buffett Stocks To Invest In Right Now: Synta Pharmaceuticals Corp.(SNTA)
- [By Lisa Levin]
Synta Pharmaceuticals Corp. (NASDAQ: SNTA) shares were also up, gaining 61 percent to $0.393. Synta Pharmaceuticals announced plans to merge with privately-held Madrigal Pharmaceuticals.
Top 10 Warren Buffett Stocks To Invest In Right Now: EQT Midstream Partners, LP(EQM)
- [By WWW.INVESTOPEDIA.COM]
Companies in the oil storage business can take advantage of what is known as contango, which is when forward prices are higher than current prices, allowing the purchase of cheap oil to be stored and sold at a later date while securing income using derivatives. Five companies that appear to be in a good position to take advantage of reduced oil storage capacity are Magellan Midstream Partners (NYSE: MMP), Enterprise Products Partners (NYSE: EDP), Spectra Energy Partners (NYSE: SEP), Buckeye Partners (NYSE: BPL) and EQT Midstream Partners (NYSE: EQM).
Top 10 Warren Buffett Stocks To Invest In Right Now: Starbucks Corporation(SBUX)
- [By Adam Levy]
A little more than a decade ago, McDonald’s (NYSE:MCD) started introducing luxury espresso drinks to its coffee menu. The move was aimed at combating the ever-growing popularity of Starbucks (NASDAQ:SBUX) as a morning ritual for millions of consumers. McCafe now generates $4 billion in U.S. sales annually for McDonald’s.
- [By Sreekanth Anasa]
Google has had an eventful last few days. Firstly,Google’s search engine highlighted an inaccurate story claiming that President-elect Donald Trump won the popular vote in the recently concluded presidentialelections. This raises questions over Alphabet Incs ‘crown jewel, Google search. But Google has come out strongly against fake news in its search results with new Ad policies and other strict measures to have the most accurate search results. To make things worse for Alphabet, the companys drone delivery deal withStarbucks Corporation(NSDQ: SBUX) fell through last week.
- [By Douglas A. McIntyre]
The suggestion of a boycott of Starbucks Corp. (NASDAQ: SBUX) products because its CEO plans to hire thousands of refugees, as well as an analyst downgrade of Under Armour Inc. (NYSE: UAA) stock due to the CEO Kevin Plank’s positive comments about the effects of Trump on American business, show how widely the debate over association, either positive or negative, with White Housepolicies has exploded.
- [By Stark Merrifield]
Another company Fitz-Gerald is watching is Starbucks Corp. (Nasdaq: SBUX).
The company is expanding its presence in China — it plans to have more than 5,000 stores opened by 2021 — a 1,150% increase from the 400 SBUX stores local to China in 2011. It also intends to install a 30,000-square-foot premium roaster on West Nanjing Road in Shanghai’s shopping district.
- [By Ben Levisohn]
Starbucks (SBUX) is set to release earnings on April 27–and the result could set the coffee purveyor’s stock up for some tasty gains.
What do I mean? Shares of Starbucks have been range bound for the last five months, with shares bouncing between roughly $54 and $60 during that period. But with earnings coming up, Starbucks has a catalyst to finally break though $60, if the company can deliver the goods.
In a note released yesterday, Oppenheimer’s Brian Bittner andMichael Tamas contend it will:
SBUX is highly controversial into a critical stretch for its investment case. It’s our top large-cap pick. We anticipate a multifaceted SSS improvement cycle into the June quarter (and beyond) at an attractive valuation. This intriguing setup is against ’17/’18 EPS estimates already harnessed at the bottom end of its 15-20% targeted algorithm. For 2Q17′s print (4/27 release), we expect in-line results and an unchanged outlook. We see limited downside to the $54 level with a base case at $65 (and upside case at $72).
Phases & Cycles’ Monica Rizk and Ron Meisels see more upside…if Starbucks can break that pesky $60:
A sustained rise above 卤$60 would signal a breakout and the start of a new up-leg. Behaviour indicators including the rising 40wMA and the rising trend-line confirm the positive status. Only a sustained decline below $54-55 would be negative. A rise above 卤$60 would signal Point & Figure targets of $69 and $74 (18% and 27% appreciation potentials from current levels).
See you there?
Shares of Starbucks have gained 1.4% to $59.16 at 2:57 p.m. today.
- [By Seth McNew]
Some of what Chipotle is doing comes from Starbucks’ (NASDAQ:SBUX) playbook. The coffee company was a trailblazer in creating a digital and mobile strategy that has truly transformed the customer experience and added to Starbucks’ bottom line. Its app, which features a mobile wallet-style system of stored preferences and the ability to order ahead to pick up your drink without waiting in line, now has more than 13 million active users, and the company has pointed to its digital growth many times as a boost to its comparable-store sales and margin growth. Mobile payments now make up one-quarter of all Starbucks transactions.
Top 10 Warren Buffett Stocks To Invest In Right Now: Carnival Corporation(CUK)
- [By Rick Munarriz]
Carnival Corporation & plc (NYSE:CCL) (NYSE:CUK)shareholders have to be feeling pretty good these days. The stock hit yet another new high on Friday, and the stock is trading 13% higher so far in 2017.It’s been smooth sailing so far this year, but the first big test comes on Tuesday morning when the world’s largest cruise line operator reports financial results for its fiscal first quarter.
Top 10 Warren Buffett Stocks To Invest In Right Now: Key Tronic Corporation(KTCC)
- [By Lisa Levin]
Computer Peripherals: This industry rose 2.21% by 10:15 am ET. The top performer in this industry was Key Tronic (NASDAQ: KTCC), which gained 0.3%. Key Tronic’s trailing-twelve-month ROE is 14.57%.
Top 10 Warren Buffett Stocks To Invest In Right Now: Coca-Cola Enterprises, Inc.(CCE)
- [By Lisa Levin] Related LOV Match Group And Spark Networks: A Valentine's Day Case Study 20 Biggest Mid-Day Losers For Thursday Related VKTX 15 Biggest Mid-Day Losers For Tuesday 18 Biggest Mid-Day Losers For Wednesday Companies Reporting Before The Bell Canadian Solar Inc. (NASDAQ: CSIQ) is expected to report its quarterly earnings at $0.32 per share on revenue of $690.27 million. General Mills, Inc. (NYSE: GIS) is projected to report its quarterly earnings at $0.71 per share on revenue of $3.84 billion. Coca-Cola European Partners Plc (NYSE: CCE) is estimated to report its quarterly earnings at $0.45 per share on revenue of $2.72 billion. Lands' End, Inc. (NASDAQ: LE) is expected to report its quarterly earnings at $0.35 per share on revenue of $459.43 million. Francesca's Holdings Corp (NASDAQ: FRAN) is estimated to report its quarterly earnings at $0.37 per share on revenue of $145.91 million. Cheetah Mobile Inc (ADR) (NYSE: CMCM) is projected to report its quarterly earnings at $0.06 per share on revenue of $178.04 million. Neogen Corporation (NASDAQ: NEOG) is estimated to report its quarterly earnings at $0.27 per share on revenue of $90.05 million. Lennar Corporation (NYSE: LEN) is projected to post earnings for its first quarter. Fifth Street Asset Management Inc (NASDAQ: FSAM) is expected to report its quarterly earnings at $0.14 per share on revenue of $25.12 million.
Top 10 Warren Buffett Stocks To Invest In Right Now: Xerium Technologies Inc.(XRM)
- [By kiplinger]
52-week high: $18.93
52-week low: $11.01
Annual revenues: $492.9 million
Xerium Technologies (XRM), a manufacturer of products used in papermaking, is a favorite of micro-cap expert Dan Abramowitz, who heads Hillson Financial Management, in Rockville, Md. Abramowitz calls the company “a turnaround story that is now at an inflection point.” Changes that a new management team put into effect in 2012 should start bearing fruit. The stock’s price-earnings ratio is a mere 7, based on the average of analysts’ earnings estimates for 2016.
Top 10 Warren Buffett Stocks To Invest In Right Now: Canon, Inc.(CAJ)
- [By Paul R. La Monica]
Miscellaneous shorts. Lamensdorf is also betting against Japanese printer and camera giant Canon (CAJ) since he believes the company still hasn’t figured out a way to compete with smartphones.
- [By Dan Carroll]
Nikon’s story is similar to what’s plaguing its Japanese rival, Canon (NYSE: CAJ ) . Canon’s stock has nosedived by 20% year to date, but the stock’s recovered nearly 3% over the past month. Don’t let appearances fool you: The company slashed its full-year sales and profit forecasts back in July, as the worldwide camera market has slumped, and as smartphones continue to take over this aging niche. Canon’s route back to respectability looks like a treacherous climb.