Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

earnings outlook

Two Big Trends to Emerge This Earnings Season?

By | April 11, 2014

The Two Big Themes This Earnings SeasonLots of companies have broken out of their previous long-term trends on the stock market, and it’s a positive, contributing signal to a secular bull market.

One company that recently beat Wall Street consensus and just broke out of its previous price trend is A. Schulman, Inc. (SHLM) out of Akron, Ohio.

This business deals with resins and plastic compounds. It’s not very exciting, but the company is growing, it … Read More

Why Investors Should Pay Attention to This Diverse Stock

By | January 30, 2014

Business Booming for These Stocks Right NowWith little wind at its back from last year’s exceptional performance, this market is a stock-picker’s market, and one that continues to favor existing winners.

For an existing portfolio of large-cap, dividend-paying blue chips, I don’t see a lot of new action to take right now. The most valuable information for investors is what corporations actually say about their businesses. The outlook for dividends and share repurchases is solid.

Companies … Read More

Stock Market: Where the Real Risk Is in 2014…

By | January 22, 2014

Risk Returns to Earnings ResultsThe Dow Jones Transportation Average is still very close to its all-time high, and so are countless component companies. The airlines, in particular, have been very strong in a classic bull market breakout performance. Many of these stocks have roughly doubled over the last 12 months.

Commensurate with continued strength in the Russell 2000 index of small-cap stocks and year-to-date outperformance of the NASDAQ Composite, this is still a very … Read More

Top Stocks for Speculative Investors in 2014

By | January 16, 2014

Price Momentum Still Favors These StocksLooking for volatility? Stick with 3D (three-dimensional) printer stocks. While most continue to exude upward price momentum, valuations are off the charts and the action can only be described as “gut-wrenching.”

Stratasys Ltd. (SSYS) is a company we looked at back in November. Based out of Eden Prairie, Minnesota, Stratasys is one of the leading manufacturers of 3D printers. (See “In Spite of Hype, New Tech Sector Not a Fad.”)… Read More

Top Market Sectors for 2014

By | January 8, 2014

Transports in 2013 Financials in 2014We won’t really get into the heart of the fourth-quarter 2013 earnings season until late January into early February. Smaller companies typically take longer to report, as they don’t have the large accounting departments that blue chips have.

I’ve noticed that quite a number of Wall Street research analysts have been boosting their 2014 full-year earnings expectations. They’re playing the same old game of cat and mouse with corporations and … Read More

Financial Reports

Large-Cap Stocks the Place to Be in 2014?

By | December 19, 2013

2014 Outlook for Income Looks SolidIt can only be described as a huge vote of confidence. The Boeing Company (BA) announced a whopping 50% increase in its dividends to $0.73 per share. And beginning this January, the company will begin a new $10.0-billion share repurchase program, in addition to the $800 million left from its previous share buyback plan.

The higher quarterly dividend will be paid out March 7, 2014 to shareholders of record on … Read More

Four Companies with Earnings Growth That Shines

By | December 2, 2013

earnings growthThere are still a lot of companies that are reporting quarterly earnings and, in many cases, the numbers are pretty decent. Let’s look at some of the winners.

The iconic jewelry brand Tiffany & Co. (NYSE/TIF) reported outstanding quarterly earnings growth of 50% due to significant sales strength and margin expansion from the Asia-Pacific region. The company’s American stores saw total sales grow four percent to $417 million, with European … Read More

Institutional Investors’ Risk of “Having to Be in Stocks” High

By | November 26, 2013

investment opportunityIt’s an amazing performance that few people predicted at the beginning of the year—this stock market might just keep on climbing right into the New Year.

Just recently we looked at Automatic Data Processing, Inc. (ADP) as it broke a new all-time record high of $77.00 a share. Now, the position has surpassed $80.00 a share, still boasting a 2.4% dividend yield. It was $60.00 a share in January.

The … Read More

Price Action of Transportation Stocks Indicates Slowing Economy

By | October 21, 2013

Price Action of Transportation Stocks Indicates Slowing EconomyTransportation stocks are now reporting their third-quarter earnings, and it’s important for investors to pay attention to what these leading market indicators have to say.

J.B. Hunt Transportation Services Inc. (JBHT) is one of the largest trucking firms in North America. The company reported a solid third quarter, but earnings came in just slightly below what Wall Street was looking for.

Third-quarter revenues grew 11% to $1.44 billion, which is … Read More

If You’re Looking for Rising Dividend Income…

By | October 16, 2013

If You’re Looking for Rising Dividend IncomeThird-quarter earnings season continues this week; with a number of companies set to report in the next few days, the stock market’s attention should finally be on corporate earnings. And while earnings expectations are being reduced, the positive disposition to the Dow Jones Transportation Average remains.

The index has trended higher compared to many blue chips, which have been in consolidation for some time now. Many component companies of the … Read More

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