Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Jim Lebenthal and Stephanie Link, Chief investment strategist, Hightower commented about whether AXP-N, CLF-N are stocks to buy or sell.
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STRONG BUY
Reported a big beat and gain, but shares went down. In the last 12 months, it reported $6 billion in EBITDA. They raised their guidance on price by 17%. Volumes are picking up, including the carmakers. It's annoying that shares are down today--the market is down, and there could be some profit-taking. Today's price is a definite buy. It boasts free cash flow of $6 billion pr 40% FCF yield, which cannot be found in megacap tech stock, and CLF is buying back shares. They are anchored by fixed, long-term contracts. The market is a dingbat when CLF reports.
steel
BUY
One of her largest holdings. Reported strongly today, but stocks down. Disappointing, but today is a buying opportunity. It's a reopening play as people will spend a lot on travel. Metrics were very strong in the report including card fee growth of 16% YOY, 3 million new cards signed up, 19x PE, and upbeat guidance of 18-20% growth this year and mid-teens for coming year. She expects business spend to pick up. A strong beat, but share are down -- earnings season is "silly season."
investment companies
funds
COMMENT
Cash He's shorting the QQQ stocks and the S&P, given the Fed's hawkish stance (pressuring stocks today) and now an alternative to stocks--bonds with yields near 3%. Don't fight the Fed; don't buy when markets dip. Instead, build and hold cash like he is. There will be better times. Deploy more capital by buying the bottom or protect your capital? He's doing the latter.
SELL
He sold it. He graded it a D for its high 266x earnings. Also, he didn't like that 57% of their revenue comes from crypto fees; he expects these fees to decline. Third, their long-term debt increased from $2.6 million to $4.6 billion in one year. Four, earnings expectations are declining.
Technology
BUY
Was downgraded today. UNP has trouble hiring enough staff and meeting demand. They will figure this out and hire enough specialized staff. Total traffic demand growth in 2021 fell short of their 5% target. Rail shipping margins continue to improve with precision schedule. This is a great place to play in industrials.
Transportation
COMMENT
There are a lot of players in streaming and costs are high to attract new customers, but she's looking at Disney's theme park revenue which can pass higher costs to customers. There could be a big bump if they don't need to support the infrastructure of its township in Florida. She expects strong park revenue, but is it enough to offset weakness in Disney+? She's not sure.
entertainment services
