Barron’s is bullish on Ford, Crox, McKesson, and Yahoo
Barron’s is bearish on Nike, Foot Locker and Tesla
In its weekly review of stocks and market, Barron’s tells its readers:
Yahoo! $YHOO continues to look undervalued, with shares trading at a “sizable” discount to estimated asset value, Barron’s contends in a ‘Follow Up’ column. According to the report, #Gabelli analyst Brett Harriss calculates Yahoo’s asset value at $71 per share, though the expected sale of those assets could fetch closer to $60 after accounting for taxes and discounts.
Tiernan Ray of the Barron’s Technology Trader column argues that tech companies “often reach critical mass” when annual revenues approach $1B. Some young companies have already passed that benchmark and stand out, the publication says, including #Arista Networks $ANET . Among companies approaching $1B, Pure Storage $PSTG looks “noteworthy,” with Barron’s also naming Veeva Systems $VEEV , #FireEye $FEYE , #Splunk $SPLK , Box $BOX and Atlassian $TEAM .
Despite wider concerns over the future of retail, investors and analysts should “renew their faith” in #Crocs , Barron’s contends in a ‘Trader Extra’ column. The company has already undergone a restructuring effort, and the cheap shares offer an “excellent deal” as Crocs $CROX returns to profitability and finds its place in the marketplace.
Headwinds are appearing for Foot Locker $FL as mall traffic slumps and the basketball sneaker boom potentially loses steam, Barron’s contends in a ‘Trader Extra’ column. The already-weakened stock is vulnerable to another double-digit percentage slump, the publication adds. The report also cites independent analyst Jonathan Hanlon of Research 360, who highlights lackluster execution in apparel and growing competition from online, particularly from #Nike $NKE .
International Paper $IP offers “plenty to entice investors,” including rising free cash flow and a steadily growing dividend, Barron’s contends in a feature article. The packaging and paper name is a beneficiary of ecommerce trends, and could return 25% by year end as volumes rebound and the company hikes prices, the publication says. “We are at an inflection point. We expect margins to return to peak levels at the end of this year. In industrial packaging, we will exit the year in the 23% to 25% range, compared with trough margins in the first quarter of 18.5%,” CFO Glenn Landau told the publication in an interview.
Newly appointed #Ford $F CEO Jim Hackett “looks like an inspired choice” to accelerate the company’s autonomous driving effort and lift shares, Barron’s contends in a cover story. Investors could make 30% in a year as #Hackett makes his case in the coming months, the publication says, adding that the stock has an “excellent chance” of outperforming Tesla $TSLA over the next five years.
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