4Q14 Stock Summary: Fourth-Quarter Earnings Season a Bore
We’re now in the lull between earnings seasons, and stocks will trade off economic news and geopolitical events.
Fourth-quarter earnings season was fairly uneventful. It seemed that investors basically ignored the results, unsure of whether to buy a market that’s already gone up.
There’s been continued strength among technology stocks, and the NASDAQ Composite recently broke out convincingly over 4,750, where it… Read More
Income-seeking investors, who are typically more likely to be risk-averse, are now having difficulty finding value in a stock market that’s gone up tremendously.
The huge reduction in the spot price of oil has certainly offered up more value than when the price was steadily around $100.00 a barrel.
Although not cheap by any means, I like Kinder Morgan, Inc. (KMI), which is in the process of acquiring its limited… Read More
It really is a great time to be in the railroad business. Cash flow is abundant and these stocks are poised for more capital gains.
While coal shipments have been a weak spot for railroad companies, virtually all other major customer sectors are producing excellent comparable growth.
And that growth is directly reflected in share prices. Railroad stocks have been—and continue to be—on a tear.
When the broader market corrected… Read More
Large-cap earnings were pretty good this quarter, just like they were in the second quarter of this year.
The Walt Disney Company (DIS) was one of them. Notable in the company’s solid fiscal fourth-quarter and year-end results was its huge jump in profitability.
While total fiscal 2014 sales grew eight percent to a record $48.8 billion, earnings grew a whopping 22% to a record $7.5 billion on the back of… Read More
Credit card companies are some of the best indicators in the global economy. Visa Inc. (V) just reported a pretty decent quarter. While earnings were down comparatively due to a one-time charge, adjusted earnings handily beat consensus.
The company’s fiscal fourth quarter came in solid, with growth of 10% on a constant dollar basis to $3.2 billion compared to the same quarter last year.
Recently, the company increased its quarterly… Read More
The big news so far this earnings season isn’t corporate financial results but the price of oil, which continues to be under pressure.
Domestic production has finally caught up to spot prices and combined with reduced expectations for the global economy, oil prices continue to be vulnerable.
Resource investing is inherently volatile; risk related to commodity-based investing is always higher. But as oil prices have given oil stocks a well-deserved… Read More
My favorite pharmaceutical company for long-term investors is still Johnson & Johnson (JNJ), for now.
This business has managed to produce very good financial growth in recent history and its share price has appreciated exceptionally well considering this is a DOW stock, especially over the last two years.
Large-cap companies can’t avoid the business cycle and they can’t avoid industry-specific trends. For pharmaceuticals in particular, the drug development cycle can… Read More