Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue is bullish on several names. They include:
Autodesk, Alexion could have upside, Barron’s says – Elevated sales, marketing and staffing expenses could mean a company’s stock has upside, Jack Hough writes in this week’s edition of Barron’s, citing a paper published in The Review of Financial Studies that links high SG&A with future stock returns. Among the companies that look attractive on this basis that “you have to spend money to make money” are Autodesk (ADSK), Alexion (ALXN), Electronic Arts (EA) and Silicon Laboratories (SLAB), the publication argues.
Apache stock could double, Barron’s says – Apache’s (APA) stock could double after years of missteps, given its new gas discoveries and focus on costs, Leslie Norton writes in this week’s edition of Barron’s. Both Harris Associates and Davis Funds increased their stakes in the first quarter on the expectation that the shares of the driller could double from a recent $45, Barron’s adds.
Steel prices likely stable in the near-term, Barron’s says – China’s economic slowdown, a strong dollar and a U.S. bid to halt imports are likely to stabilize steel’s price in the near-term, Manuela Badawy writes in this week’s edition of Barron’s. After hitting multiyear lows back in late 2015, prices for the industrial metal rose some 45% in the past 18 months, the publication notes. Publicly traded companies in the space include U.S. Steel (X), Steel Dynamics (STLD), Nucor (NUE), ArcelorMittal (MT), and AK Steel Holding (AKS).
O’Reilly Automotive will overcome ‘disappointing’ sales figures, Barron’s says – In a follow-up story, Barron’s tells readers that while O’Reilly Automotive estimated that second quarter same-store sales growth will be 1.7%, well below previous guidance of 3% to 5%, the auto-parts supplier will overcome the “disappointing” sales figures and will get back on track.
Oil prices could rise 35% this year, Barron’s says – Crude oil, which has recently been volatile in price, could stabilize at about $60 a barrel by the end of this year as demand increases, lifting the shares of companies in the space, Barron’s says in an article citing Citigroup’s analyst Eric Lee. This forecast would mean a price jump of 35%, the publication notes. Publicly traded companies in the space include BP (BP), Chevron (CVX), ConocoPhillips (COP), Exxon Mobil (XOM), Royal Dutch Shell (RDS.A), Total (TOT), BHGE (BHI), Diamond Offshore (DO), Halliburton (HAL), Nabors Industries (NBR), Noble Corp. (NE), Rowan Companies (RDC), Schlumberger (SLB), Transocean (RIG) and Weatherford (WFT).
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