Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue features several names. They include:
Large-cap energy companies in better shape to raise dividends – With oil prices close to $50 a barrel, large-cap energy companies are in better shape to maintain or even raise their dividends than they were a few years ago, when prices collapsed, Lawrence Strauss writes in this week’s edition of Barron’s. Oneok (OKE), Valero Energy (VLO), Exxon Mobil (XOM), Phillips 66 (PSX), Marathon Petroleum (MPC) and ConocoPhillips (COP) expected to boost their payouts above 2016 levels this year, the publication said.
Delta Air Lines could rise 35% in two years. At $50, Delta’s (DAL) shares trade at about nine times estimated 2017 earnings, which is “inexpensive” for a company looking to post double-digit earnings growth in the coming years, Andrew Bary writes in this week’s edition of Barron’s. The shares could rise 35% in the next two years, Bary notes, adding that a 50% dividend hike in September will lift the yield to 2.4%.
Finisar seen as the ‘most attractive’ Apple iPhone supplier – With the next Apple’s (AAPL) iPhone expected this fall, Wall Street is starting to speculate on the winners, with CEVA (CEVA) joining Cirrus Logic (CRUS) and Skyworks Solutions (SWKS), Tiernan Ray writes in this week’s edition of Barron’s. Among the most talked-about aspects of the next iPhone is augmented reality, Ray notes, adding that possible beneficiaries include Finisar (FNSR), Lumentum Holdings (LITE), II-VI (IIVI), and Viavi Solutions (VIAV). Finisar shares surged in June when it announced quarterly results that included an order for “3-D sensing,” a code name for augmented reality, Barron’s points out.
Southern ‘a good bet’ for investors willing to take on more risk – This year has not been kind to Southern Company (SO) shares, but after Scana’s (SCG) news that it would abandon its plan to build two nuclear reactors in South Carolina, Southern could be a “good bet” for investors willing to take on a little more risk, Ben Levisohn writes in this week’s edition of Barron’s. Southern could decide to abandon the two plants it has under construction in Georgia, something that would likely be rewarded by the market, #Levisohn adds.
Voya Financial could be worth 30% more – Voya Financial (VOYA) shares have fallen over 13% in the past two years, with Wall Street penalizing the company for a “troubled” legacy variable-annuity business that had made some of the most generous benefit guarantees in the industry, Reshma Kapadia writes in this week’s edition of Barron’s. However, there are indications that Voya’s core retirement and investment business is growing, and that management is taking the right steps to reduce risk, Kapadia argues, adding that Voya could be worth at least 30% more than its current market value in the next year.
Slower growth in China could prompt retreat in Copper prices, Barron’s says – Copper is enjoying its biggest rally in months, boosted by increased confidence about global growth and a weaker U.S. dollar., Ira Iosebashvili writes in this week’s edition of Barron’s. However, some market participants urge caution, warning that the ground may shift under investors’ feet in the second half of the year, with many concerned about China, Iosebashvili adds. Publicly traded companies in the space include Freeport McMoRan (FCX), BHP Billiton (BHP), Rio Tinto (RIO), Anglo American (NGLOY), Southern Copper (SCCO), and Vale (VALE).
Chipotle (CMG) shares should be avoided, since food-safety
problems might be structural and not coincidental.
Buy Tesla car, not stock – In a follow-up story, Barron’s writes that Tesla (TSLA) shares have outrun most analysts’ reasoned cases for buying the stock. While initial reviews of the Model 3 are glowing, and Tesla reports a remarkable 450,000 in pre-orders, the company’s stock price leaves little on the table, the publication adds.
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