Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.
Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.
Stock number one is:
V.F. Corp.(SYMBOL: VFC), and the headline says:
Strong First Quarter Beat (Citi Research)
V.F. Corp., maker of Wrangler, Lee, The North Face and Timberland apparel, announced first quarter earnings per share of $2.43, handily beating the consensus estimate of $2.19. Gross margins expanded 240 basis points year-over-year to a new high of 48.1%, reports Citi Research.
Wall Street projects V.F. Corp to grow earnings 12-13% per year for the next three years. The dividend yield is 2%.
We recommended a “buy” on V.F. Corp. on February 15. The stock is up $16 since then. Growth stock investors and growth & income investors should jump in here.
Our Ransom Note trendline says: BUY V.F. CORP.
Stock number two is:
Stock number two is AbbVie Inc. (SYMBOL: ABBV), and the headline says:
AbbVie Profit Beats Analysts’ Estimates in First Quarter (Bloomberg)
“AbbVie Inc. reported earnings that beat analysts’ estimates on higher sales of the rheumatoid arthritis treatment Humira in the first quarter since the drugmaker was split from parent Abbott Laboratories,” reports Bloomberg. Prospects for Humira sales continue to grow with potential treatments for Hepatitis C, psoriasis and ulcerative colitis.
Earnings are projected to grow 3% this year. The dividend yield is 3.54%, and the long-term debt ratio is 81%.
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