UBS analyst Brennan Hawken and team explain why they initiated Wells Fargo (WFC) with a Sell rating today:
Andrew Harrer/Bloomberg News
We see risks to Wells Fargo’s revenue growth and credit performance, which coupled with a valuation on the high end of peers and consensus estimates that have not come down much, putsWells Fargo shares at risk of underperformance in our view. While we recognize thatWells Fargo has a strong management team and excellent franchise, we believe these strengths are well understood and therefore likely to be largely priced in.
Wells Fargo’s ability to maintain flat fee revenues seems unlikely: Given the limited upside from rates, we see fee revenues as the greatest component of uncertainty in Wells Fargo’s revenue forecasts. With mortgage revenues unlikely to be a source of revenue strength for some time, growth in WIM revenues is increasingly important. However, beta headwinds and weak retail risk appetites are likely to weigh on WIM revenues this year. Even beyond near-term headwinds, we believe Wells Fargo’s greater exposure to mass affluent clients means they are more exposed to downside from the pending DOL fiduciary proposal.
Best Clean Energy Stocks To Buy Right Now: Apache Corporation(APA)
- [By WWW.THESTREET.COM]
Cramer and Jack Mohr think Apache’s (APA) management has positioned the company for growth through both innovation and efficiency. Read what they are telling their investment club members with a free subscription to Action Alerts PLUS.
- [By WWW.THESTREET.COM]
Cramer and the AAP team say Apache’s (APA) mixed results are a buying opportunity. Find out what they’re telling their investment club members with a free trial subscription to Action Alerts PLUS.
Best Clean Energy Stocks To Buy Right Now: Emerald Health Therapeutics, Inc. (TBQBF)
- [By Javier Hasse]
Emerald Health Therapeutics Inc (OTC: TBQBF) raised C$13.8 million ($10.5 million) under a bought deal financing.
“The money will be primarily used for facility expansion."
The Green Solution received a $7.5 million loan facility from iAnthus Capital Holdings Inc (OTC: ITHUF).
Best Clean Energy Stocks To Buy Right Now: Just Hold Your Nose and Dive Into Under Armour Inc (UAA)
- [By Demitrios Kalogeropoulos]
Meanwhile, earnings season produced large price swings in a few stocks individual stocks, including Under Armour (NYSE:UA) (NYSE:UAA) and UPS (NYSE:UPS).
- [By Leo Sun]
The retail sector has been a treacherous one over the past few years, due to heavy competition from e-tailers and cutthroat competition among brick-and-mortar players. Therefore, it’s easy for investors to step on landmines across the sector if they’re not careful. Today, we’ll examine two retail stocks that could cause you to lose a lot of money — Macy’s (NYSE:M) and Under Armour (NYSE:UAA) (NYSE:UA).
- [By Ben Levisohn]
Under Armour’s (UAA) guidance last month was so bad that the stock lost a quarter of its value in just one day. Some analysts have stuck with the company, but many more have downgraded it. But that’s in the past. Now, Under Armour’s products are hitting the shelves at Kohl’s (KSS), and some have worried that it could dilute Under Armour’s brand. Kohl’s, meanwhile, has had troubles of its own–its stock is down 23% during the past three months–as investors have worried about the internet destroying retail as we know it. Which begs the question: Are you in trouble when you’re looking at Kohl’s as a savior?
Baird’s Jonathan Komp and Benjamin Bray, however, see an opportunity for Under Armour to replace revenue lost when The Sports Authority liquidated. They explain why:
Under Armour has begun to arrive in stores and online at Kohl’s (covered by Mark Altschwager at Baird). We sense investors have been more positive on the opportunity for Kohl’s (adding another attractive national brand to its large/rapidly growing active category; characterized as “one of biggest brand launches in history”) than for Under Armour (given fears of brand dilution). Our initial review of the in-store execution is favorable and supportive of our belief that Under Armour can successfully sell a differentiated line of apparel and footwear that is highly incremental (could replace the ~$160 million of lost TSA revenue and grow much larger), yet distinct from offerings sold in more traditional athletic specialty and sporting goods distribution.
Shares of Under Armour have gained 1.1% to $21.87 at 2:06 p.m. today, while Kohl’s has advanced 0.3% to Kohl’s.
- [By Douglas A. McIntyre]
The suggestion of a boycott of Starbucks Corp. (NASDAQ: SBUX) products because its CEO plans to hire thousands of refugees, as well as an analyst downgrade of Under Armour Inc. (NYSE: UAA) stock due to the CEO Kevin Plank’s positive comments about the effects of Trump on American business, show how widely the debate over association, either positive or negative, with White Housepolicies has exploded.
- [By Ben Levisohn]
As well know by now, Under Armour (UAA) plunged on Tuesday after it missed earnings forecasts and cut its revenue-growth guidance in half, resulting in so many downgrades, I’ve lost count. So it’s nice to see one group of analysts–Baird’s Jonathan Komp and Benjamin Bray–urging investors stick wit the beaten-down sports-apparel company:
“Hitting the wall,” “Getting over our skis”…Even the best/well-run growth companies (including Nike in the late-1990s) often have faced periods of slowing sales, margin contraction, and/or broader uncertainty. The key questions for long-term investors are whether the brand remains in favor, and if management has the will/fortitude to turn the ship, and we answer both with a “Yes” for Under Armour. While painful to have been wrong thus far, we believe a number of factors (including valuation relative to Nike (NKE)) support sticking with Under Armour…Given that many investors viewNike as an example of the whitespace opportunity for Under Armour, we find it interesting that following the recent pullbackUnder Armour currently commands a market capitalization that is only ~10% of that of Nike, while Under Armour’s TTM revenue is ~14% of Nike’s and TTM EBITDA is ~11% of Nike’s. The last time this occurred (rel ative market cap < relative sales/profit) was around the 2009 bottom for Under Armour.
Shares of Under Armour have tumbled 3.6% to $20.66 at 1:36 p.m. today, while Nike has slipped 0.4% to $52.79.
- [By Bryan Murphy]
Under Armour Inc (NYSE:UAA) has a problem.
In light of the 70% pullback UAA shares have suffered since the September-2015 peak, that’s not exactly news to current and would-be shareholders. Under Armour may not be in the trouble most investors might suspect it means, though. The athletic apparel outfit has deeper, philosophical problems than a failing stock. This company has developed a bad habit, and may struggle to break out of it…. IF it can break out of it.
Giving credit where it’s due, Under Armour has never had a problem growing the top line. Leveraging sponsorships/endorsements of some (very) high profile athletes like Tom Brady, Stephen Curry, and Jordan Spieth — just to name a few — the organization has mustered double-digit sales growth for several years now. The graphic below tells the tale; click on it to view the full-screen version.
Best Clean Energy Stocks To Buy Right Now: L-3 Communications Holdings, Inc.(LLL)
- [By Paul Ausick]
Five teams are expected to compete for the contract: Boeing Co. (NYSE: BA) has joined with Saab to offer a clean-sheet design; Northrop Grumman Corp. (NYSE: NOC) has teamed up with BAE Systems and L-3 Communications Holdings Inc. (NYSE: LLL) on another clean-sheet design; Lockheed Martin Corp. (NYSE: LMT) and Korea Aerospace Industries (KAI) are going with a modified KAI T-50; Raytheon Corp. (NYSE: RTN) has joined with Italy’s Leonardo and Canada’s CAE Inc. (NYSE: CAE) on a version of Leonardo’s M-346 trainer that it calls the T-100; and privately held Sierra Nevada has partnered with Turkish Aerospace Industries (TAI) on another clean-sheet design.