Costco’s March Sales Jump. E-Commerce Is Taking Off. — Barrons.com

/ / Consumer Discretionary /

By Sabrina Escobar Costco Wholesale’s sales jumped nearly 10% in March compared with a year ago, giving the stock a modest lift in Wednesday’s after-hour trading session. Net sales jumped 9.4% year over year to $23.5 billion, accelerating from February’s 6.9% rise. Same-store sales — a key metric for retailers that measures sales in stores open for more than a year — rose 7.7% in March. This also marked faster growth from February, which saw same-store sales increase 5%. The board of directors increased the company’s quarterly dividend by about 14% to $1.16 per share from $1.02 per share. The dividend is payable May 10 to investors holding the shares at the close of business April 26. Costco stock ticked up 0.7% to $727.50 in after-hours trading. The shares have gained 9.4% this year, modestly outstripping the S&P 500’s 8.2% rise. An improvement in store visits likely helped boost March’s […]

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ASML, ASM, VAT Group Stocks Look Undervalued

/ / Technology /

Front-end semiconductor stocks–those focused on wafer fabrication–deserve to trade at a premium, Jefferies analysts write in a research note. The U.S. bank expects ASML Holding, ASM and VAT Group to see significant growth in the next 12 to 15 months driven by the structural growth outlook from rising capital-expenditure intensity, a lack of meaningful competition, strong cyclical drivers into 2025 and healthy cash returns. “While investors are concerned on the sharp rerating that has already occurred for many front-end semicap equipment names, we predict all three stocks to trade above the previous peak multiples and–for the reasoning above–expect further rerating to occur,” Jefferies says. ASML shares are up 1.8% at EUR915.30; VAT shares are up 0.1% at CHF484.70; ASM shares are up 2.1% at EUR588.0.

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Investors Should Stick to ‘More Defensively Positioned Asset Allocation’ For Now, Wells Fargo Investment Institute Says

/ / Financials /

Investors in the US stock market should maintain a “more defensively positioned asset allocation” while awaiting clarity on the direction of inflation and interest rates, Wells Fargo Investment Institute said in a report Tuesday. The firm advised investors to prioritize quality and liquidity in equities and fixed income and maintain broad exposure to commodities in the meantime. As headwinds emerge in the current economic cycle amid low household savings, rising credit-card delinquency rates, and the lagged effect of higher interest rates on credit-sensitive sectors, a more noticeable growth slowdown is expected in the second half of the year, the report said. Wells Fargo said the downturn is, however, being cushioned and delayed by “unusually accommodative financial conditions” amid the ongoing “rapid” disinflation in the US and an “early reprieve” from high borrowing costs. It said an “abnormally low level of financial stress” thus prevails in the economy. “Ultimately, we believe

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Tesla Could Face Headwinds Amid Plateau in EV Demand, Competition in China, UBS Says

/ / Consumer Discretionary /

Tesla (TSLA) could face headwinds to its unit growth over the coming years amid a plateau in demand for electric vehicles and increasing competition in China, UBS Securities said in a Tuesday note. The investment firm said results from its 2024 UBS Global EV survey showed that Tesla remains a leading battery electric vehicle brand consideration by 39% of the respondents globally but was overtaken by BYD in China. UBS said more respondents in the US indicated that Tesla would be their top battery electric vehicle choice but demand in the country appears “more stagnant.” Survey results also indicated that consumers “may want more EV choices,” UBS added. According to UBS, the survey results support its 2024 to 2025 delivery forecast for Tesla, which is below Street consensus. UBS maintained its neutral rating on Tesla, with a price target of $160.

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Boeing MAX Deliveries Fell by More Than Half in March. Expect Earnings to Disappoint. — Barrons.com

/ / Industrials /

Boeing delivered two dozen 737 MAX jets in March, down 54% year over year. That result wasn’t entirely bad news, but the numbers mean investors should brace for lower quarterly earnings than Wall Street is forecasting. The aerospace company said Tuesday that it shipped 29 jets, including 24 MAX planes, in March. It delivered 64 jets, including 52 MAX planes, in March 2023. For the first quarter, Boeing delivered 83 planes, including 67 MAX jets. That compares with 130 jets, including 111 MAX models, in the first quarter of 2023. Not only are the numbers lower than they were a year earlier, the quarterly results look light. Wall Street analysts had projected 104 first-quarter deliveries, including 71 MAX jets. Boeing stock was unaffected in midday trading Tuesday. Shares were down 0.3% at $181.11, while the S&P 500 and Dow Jones Industrial Average were off 0.5% and 0.6%, respectively. The stock

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Morgan Stanley (NYSE:MS) Stock Analyst Ratings

/ / Financials /

Morgan Stanley (NYSE:MS) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 04/09/2024 — JMP Securities Reiterates → Market Perform 04/05/2024 0.13% Keefe, Bruyette & Woods $91 → $94 Maintains Market Perform 04/04/2024 8.66% Evercore ISI Group $97 → $102 Maintains Outperform 03/28/2024 6.52% HSBC $96 → $100 Maintains Hold 03/27/2024 -3.06% RBC Capital → $91 Reiterates Sector Perform → Sector Perform 03/19/2024 3.33% Oppenheimer $109 → $97 Maintains Outperform 01/30/2024 16.11% Oppenheimer $106 → $109 Maintains Outperform 01/17/2024 12.92% Oppenheimer $107 → $106 Maintains Outperform 01/17/2024 13.98% BMO Capital $106 → $107 Maintains Outperform 01/17/2024 -3.06% Keefe, Bruyette & Woods $102 → $91 Downgrades Outperform → Market Perform 01/17/2024 -7.32% JP Morgan $94 → $87 Downgrades Overweight → Neutral 01/09/2024 1.2% UBS $80 → $95 Maintains Neutral 01/09/2024 0.13% JP Morgan $92 → $94 Maintains Overweight 01/09/2024 2.26% HSBC → $96 Downgrades

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Boeing March, First-Quarter Deliveries Drop Year Over Year

/ / Industrials /

Boeing (BA) on Tuesday logged steep annual declines in its deliveries for March and the first quarter amid ongoing quality checks and investigations by regulators. The plane maker delivered 29 jets last month, comprising mainly the 737 Max aircraft, up from a total of 27 deliveries in February but down from 64 a year earlier, according to data posted on its website. In March 2023, Boeing delivered 52 737 Max jets. Its first-quarter deliveries tumbled to 83, which media outlets said was the lowest since mid-2021, from 130 a year earlier. The company’s shares were down 1.8% in Tuesday afternoon trade. The company booked 113 orders in March, including 85 737 Max planes from American Airlines Group (AAL), taking its first-quarter tally to 131, up from 120 in the year-ago quarter. Boeing booked 15 orders in February and 60 in March 2023. As of March 31, the company had 6,259

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Tesla’s Stock Removed From Baird’s Bearish List With Analysts Bullish on Robotaxis and Energy

/ / Consumer Discretionary /

By Ciara Linnane Analysts still expect a ‘messy’ first quarter and say second-quarter expectations are too high Baird removed Tesla Inc. from its Bearish Fresh Pick list on Tuesday and said the news that the company’s robotaxis would debut on Aug. 8. combined with growth in the energy business, were positives that weigh against weaker-than-expected delivery numbers. Analysts led by Ben Kallo said they have fielded dozens of calls regarding Tesla’s (TSLA) recent first-quarter production numbers and nearly half centered on whether the bad news is now priced in to the stock. “We think Q1 results will be messy due to several one-time items and continue to believe Q2 estimates are likely still high,” Kallo wrote in a note to clients. “On the other hand, the announced Robotaxi unveil, emphasis on increasing FSD (full self-driving) attach rates, and Energy business growth are positives.” Baird named Tesla a Bearish Fresh Pick

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Google Preparing New In-House AI Chip

/ / Technology /

Alphabet’s Google is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. Google is preparing a new AI chip called Axion, which is the type of chip commonly used in big data centers, and can handle everything from YouTube advertising to big data analysis. Axion adds to Google’s efforts to develop new computing resources, beginning with specialized chips used for AI work as it tries to deal with rising artificial-intelligence costs. Dow Jones & Co. owns Factiva.

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Most of the Magnificent Seven Look Set for Strong Earnings — Barrons.com

/ / Technology / ,

The first quarter was a blockbuster for stocks. First-quarter earnings could notch a big win, too. The S&P 500 reached 22 record closes in the first quarter, putting it up more than 10% for the first three months of the year. That’s only the 11th time that the index has rallied more than 10% in the first quarter since 1950. Many of the same factors that propelled investor optimism, like encouraging economic data, is also fueling high expectations for corporate earnings, particularly for the highflying tech sector. Big banks kick off first-quarter earnings at the end of the week, and while there are likely to be some pockets of weakness, companies may be able to largely live up to investors’ hopes. Analysts are certainly upbeat about big tech. As DataTrek Research co-founder Jessica Rabe notes, all of the Magnificent Seven megacap tech companies except Apple and Tesla have seen consensus

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P&G Declares Dividend Increase

/ / Consumer Staples /

P&G Declares Dividend Increase April 09, 2024– The Board of Directors of The Procter & Gamble Company (NYSE:PG) declared an increased quarterly dividend of $1.0065 per share on the Common Stock and on the Series A and Series B ESOP Convertible Class A Preferred Stock of the Company, payable on or after May 15, 2024 to Common Stock shareowners of record at the close of business on April 19, 2024, and to Series A and Series B ESOP Convertible Class A Preferred Stock shareowners of record at the start of business on April 19, 2024. This represents a seven percent increase compared to the prior quarterly dividend. This reinforces our commitment to return cash to shareowners, many of whom rely on the steady, reliable income earned with their investment in P&G. It marks the 68(th) consecutive year that P&G has increased its dividend and the 134(th) consecutive year that P&G

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