earnings growth

2015: First Year Since 2008 Companies Don’t Post Earnings Growth?

By Wednesday, February 11, 2015

Earnings GrowthSince the beginning of the year, key stock indices have been experiencing wild swings. One day they are up significantly, and the next day, all the gains made are lost. The opposite is true, too; one day down big-time, and the next day back up.
In the past, we have seen this sort of pattern develop when stocks or commodities are forming a top.
Corporate Earnings Growth Forecasts Continue to Deteriorate
I have said it over and over again in these pages: for key stock indices to go higher, corporate earnings have to improve…. Read More

Looking Past Apple: 4Q14 a Bust for Majority of Stocks

By Friday, January 30, 2015

4Q14 Bust for the MarketsApple Inc. (NASDAQ/AAPL)… Read More may be shining bright after delivering an astounding record quarter, in which the company sold a staggering 74.5 million “iPhones.” But while the stock market is giddy on how Apple is performing, especially in China, where it is now the top seller of smartphones, the reality is that this earnings season has largely been a bust after about 100 S&P 500 companies have reported to date.
Prior to Apple’s results, we saw mixed and soft reporting from the big banks during this earnings season.

DuPont, 3M Report Earnings Growth, but Slow Sales: Stocks on a Break?

By Friday, January 30, 2015

Earnings Growing, Sales SlowThe bottom line is turning out to be one of the major stories this earnings season. A tough global environment and the stronger U.S. dollar (which was expected) are impacting sales. But earnings are mostly still coming through.
DuPont and 3M Reporting Decent Earnings, Slow Sales
One company that perfectly illustrates this trend is E. I. du Pont de Nemours and Company (DD)… Read More, or DuPont, whose share price is right near its high with a 2.5% dividend yield.

Railroad Stocks the Best Market Predictor for Investors?

By Friday, November 14, 2014

Railroad Stocks the Best Market Predictor for InvestorsIt 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 in October, Union Pacific Corporation (UNP) dropped just below the $100.00-per-share level for an approximately 10% correction…. Read More

Two Micro-Caps Suggesting Fourth-Quarter Earnings Boost

By Monday, November 10, 2014

Micro-Cap Stocks Suggesting Fourth-Quarter Earnings BoostLots of corporate earnings are still streaming in for the third quarter, though mostly among smaller-cap companies. Top-line growth certainly isn’t robust, but it’s not bad either. The surprise I’ve noticed in third-quarter reporting has been the profitability. There has been plenty of double-digit comparable earnings growth on single-digit sales reported.
One micro-cap company that just reported a solid quarterly performance is Blount International, Inc. (BLT).
This Portland, Oregon-based company has been around since 1947 and was first named Oregon Chain Saw Company…. Read More

These Poor 3Q Earnings Reports Foretell 2015’s Economy

By Friday, October 31, 2014

Poor 3Q Earnings Reports Foretell 2015’s EconomyAccording to research by UC Berkeley, in 2012, the top one percent of income earners in the U.S. earned 22.5% of all the income. The bottom 90%, on the other hand, earned less than 50% of all the income. (Source: Pew Research Center, January 7, 2014.) Income inequality in the U.S. economy is the highest it has been since 1928. The rich are getting richer, and the poor are seeing their share of income decline…. Read More

Why Stock Prices Will Continue to Fall

By Wednesday, October 15, 2014

Stock Prices Will Continue to FallNow that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index has fallen 12.5% from its July peak.
Since 2009, every market pullback presented investors with an opportunity to get back into stocks at discounted prices. Even some editors here at Lombardi Publishing Corporation see the recent pullback in stocks as an opportunity…. Read More

Is This Stock Sell-Off Just a Blip?

By Wednesday, October 15, 2014

Is This Stock Sell-Off Just a BlipIf there’s one thing the stock market needs, it’s a distraction from global growth worries and geopolitical events. And corporate earnings are the ticket for that as this season’s numbers are starting to pour in.
Pharmaceutical benchmark Johnson & Johnson (JNJ) once again beat Wall Street consensus, generating another good quarter of both sales and earnings growth.
The company completed a major divestiture of its ortho-clinical diagnostics division during its latest quarter; even so, it was able to generate domestic sales growth of 11.6% over the same quarter last year…. Read More

These Market Leaders Soon to Be Pushed Aside?

By Wednesday, October 8, 2014

Company’s Numbers Forecasting a Change in the CycleMy 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 be very long-winded…. Read More

Top Growth Areas Heading into 2015

By Friday, October 3, 2014

Growth Areas Heading into 2015The stock market is clearly struggling to stay afloat at this juncture, balancing the domestic economic renewal with the global risk coming from ISIS, Russia, the eurozone, and economic stalling in China.
A major catalyst or a reason to buy is what investors are searching for. The focus later next week will shift to the third-quarter earnings season, which is carefully monitored by investors.
The start of the third-quarter earnings season will officially begin with Alcoa Inc…. Read More

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