Looking at 2017 as a whole, Barclays Brandon Oglenski sees plenty of reasons to be optimistic about cyclical and US centric stocks in general, and the commodity-exposed railroads specifically.
He writes that growing demand, higher interest rations, and inflation all create a compelling case for transports, especially as these companies, which book full domestic US taxes, would see great benefit from reforms. As such, he upgraded the transport sector to Positive, and boosted his rating on Union Pacific (UNP) to Overweight.
Certainly, transports have rallied, and most large cap rail stocks are now reapproaching levels last seen in late 2014. However, Oglenski argues that the difference now is that there are
improving fundamentals to support that brighter outlook. There will be some bumpiness, as exemplified by Kansas City Southern (KSU), which fell on uncertainty surrounding its Mexico business post election. But overall he writes that 2017 could be a big year on fundamentals. More detail from his note:
top ten stocks to buy: National Steel Corporation(SID)
- [By Lisa Levin]
In trading on Thursday, basic materials shares fell by 0.45 percent. Meanwhile, top losers in the sector included Companhia Siderurgica Nacional (ADR) (NYSE: SID), down 13 percent, and Dominion Diamond Corp (NYSE: DDC), down 9 percent.
- [By Lisa Levin]
Monday afternoon, basic materials shares gained 1.02 percent. Meanwhile, top gainers in the sector included Olympic Steel, Inc. (NASDAQ: ZEUS), and Companhia Siderurgica Nacional (ADR) (NYSE: SID).
- [By Lisa Levin]
On Thursday, basic materials shares rose by 3.08 percent. Top gainers in the sector included Cliffs Natural Resources Inc (NYSE: CLF), Companhia Siderurgica Nacional (ADR) (NYSE: SID), and Teck Resources Ltd (USA) (NYSE: TCK).
top ten stocks to buy: Apollo Global Management, LLC(APO)
- [By Peter Graham]
The Q1 2017 earnings report for small cap for-profit education stock Apollo Education Group Inc (NASDAQ: APOL) is scheduled for after the market closes on Monday (January 9th). Last February, Apollo Education Groupannounced a definitive agreement to be acquired by a consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC (NYSE: APO), and Najafi Companies for $9.50 per share in cash for both Class A and B shares. However, the for-profit education sector along with certain aspects of the Apollo deal have been targeted by the Obama administration and it remains to be seen how the Trump administration will treat the sector and the deal.
- [By Lisa Levin]
The Fresh Market Inc (NASDAQ: TFM) agreed be acquired by Apollo Global Management LLC (NYSE: APO) for $28.50 per share in cash.
In an approximately $1.4 billion in cash buyout, shareholders are set to receive $28.50 per share. This calculates to an approximately 53 percent premium over the February 10 closing price and an approximately 24 percent premium over last Friday’s closing price.
- [By Chad Tracy]
In 2008, Apollo Global Management (NYSE: APO) co-founder Joshua Harris was on a losing streak.
The firm's $430 million investment in big-box retailer Linens N' Things went south when the company filed for bankruptcy.
- [By Michael E. Lewitt]
After months of bitter wrangling, the much-beleaguered Caesars has finally reached a $5 billion deal with the private-equity sponsors that looted the company,Apollo Global Management, LLC(NYSE: APO) andTPG Capital(formerly Texas Pacific Group). Pending approval by the U.S. Bankruptcy Court in Chicago, CZR is now set to leave bankruptcy, get rid of its debt, and get back on its feet.
top ten stocks to buy: Visteon Corporation(VC)
- [By Ben Levisohn]
Citigroup’s Itay Michaeli and Justin Barell argue that the race to create the car of the future is accelerating, something that will benefit suppliers like Mobileye (MBLY), Delphi Automotive (DLPH), Visteon (VC), Magna International (MGA), and Lear (LEA), as well as automakers like General Motors (GM). They explain:
- [By WWW.THESTREET.COM]
Visteon (VC) : “You need to let this one come down a little, then pull the trigger.”
American Tower (AMT) : “This is the best in the business and is worth owning, even if the chart looks terrible.”
top ten stocks to buy: Navistar International Corporation(NAV)
- [By Lee Jackson]
Navistar International Corp. (NYSE: NAV) was started with a Buy rating and a $36 price objective at Aegis Capital. That compares with a consensus target of $24.08. The 52-week range is $5.78 to $32.84. The stock closed yesterday at $30.93.
- [By Lisa Levin]
Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Monday's regular session.
Navistar International Corp (NYSE: NAV) Jun16 10.0 Puts Sweep: 902 @ ASK $0.35: 15k traded vs 1749 OI: Earnings Today Before Open $12.22 Ref ConocoPhillips (NYSE: COP) Fri 6/10 44.5 Puts (Wkly): 2000 @ ASK $0.43: 4051 traded vs 80 OI: $44.87 Ref SeaWorld Entertainment Inc (NYSE: SEAS) Sep16 17.0 Puts Sweep: 683 @ ASK $1.40: 2749 traded vs 313 OI: $16.52 Ref
Posted-In: put optionsNews Options Markets
- [By Roberto Pedone]
Another industrial player that insiders are snapping up a large amount of stock in here is Navistar International (NAV), which is a manufacturer of commercial and military trucks buses, diesel engines, and recreational vehicles under the Monaco RV family of brands, as well as a provider of service parts for all makes of trucks and trailers. Insiders are buying this stock into big time strength, since shares are up 67% so far in 2013.
Navistar International has a market cap of $2.9 billion and an enterprise value of $6.4 billion. This stock trades at a premium valuation, with a forward price-to-earnings of 50.50. Its estimated growth rate for this year is 7.2%, and for next year it’s pegged at 107.1%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.09 billion and its total debt is $4.72 billion.
A director just bought 415,101 shares, or about $14.12 million worth of stock, at $33.90 per share.
From a technical perspective, NAV is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently started to break out above its sideways consolidation pattern after shares cleared $35 to $35.90 a share. That move is now pushing shares of NAV within range of triggering another near-term breakout trade.
If you’re in the bull camp on NAV, then look for long-biased trades as long as this stock is trending above $35 to $34, and then once it breaks out above some near-term overhead resistance levels at $37 to its 52-week high at $38.81 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.21 million shares. If that breakout triggers soon, then NAV will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that move are $43 to $48 a share.
top ten stocks to buy: Oil States International Inc.(OIS)
- [By Michael J. Carr]
Einhorn selects investments with a traditional value approach, although he may not be as patient as a typical value investor. Einhorn took Apple (Nasdaq: AAPL) to court in an effort to force the company to return cash to shareholders, and more recently challenged Oil States International (NYSE: OIS) to unlock shareholder value.