Welcome to Stocks In The News, where the headline meets the trendline.
Stock number one is:
Agilent Technologies Inc., (SYMBOL: A) and the headline says:
Agilent’s Shares Seen Revived With Breakup (Bloomberg)
“Agilent Technologies Inc., with a valuation cheaper than 96 percent of peers, would enrich shareholders by breaking up and focusing on its faster-growing biological- and chemical-testing businesses,” reports Bloomberg. Agilent’s electronics-testing unit has seen no sales growth in the past decade. A break-up of the company could unlock shareholder value by allowing the life sciences stock to rise independently of the electronic measurement stock.
Earnings and revenue have been rising nicely for a few years, but earnings per share are expected to fall 7% this year, with a 2% revenue increase. Earnings are projected to resume growth in 2014 & 2015. The PE is 15, and typically ranges between 8 and 26.
The stock has been trading between $31-$52 for a few years, currently on an uptrend.
Our Ransom Note trendline says: HOLD AGILENT TECHNOLOGIES.
Stock number two is:
Wells Fargo & Company, (SYMBOL: WFC) and the headline says:
Wells Fargo’s Cost Cuts Boost Income as Revenue Slips (Bloomberg)
“Wells Fargo & Co., the largest U.S. home lender, said lower expenses helped the company post a record profit in the first quarter even as revenue dropped and lending margins narrowed,” reports Bloomberg. First quarter earnings per share came in at 92 cents, ahead of the consensus estimate of 88 cents.