Stock number one is:
The Home Depot, Inc., (SYMBOL: HD) and the headline says: "If you're one of the more than 250 million Americans who already have health insurance, you will keep your health insurance." – President Obama
Home Depot will be sending 20,000 part-time employees to the new insurance exchanges because the company is no longer allowed to offer limited liability medical coverage under the Affordable Care Act. Many restaurants and retailers will also be forced to discontinue offering part-timers their current medical benefits. Home Depot will continue to offer medical benefits to full-time employees, although the employees will now pay more for that coverage.
Earnings are expected to grow 18-19% in each of the next two years. The PE is 21 and the dividend yield is 2%.
Home Depot stock is up 19% since our buy recommendation in February, and 8% since our report earlier this month. Shares are trading sideways, currently approaching upside resistance at $81.
Our Ransom Note trendline says: ACCUMULATE HOME DEPOT.
Stock number two is:
Biogen Idec Inc., (SYMBOL: BIIB) and the headline says: Tecfidera's Launch Tracking Above 2013 Estimates – Citi Research
Prescription starts of Biogen’s new multiple sclerosis drug are robust, and continue to climb each week. Sales are tracking well ahead of consensus estimates, which leaves additional room for upside surprises to push the share price higher. Citi also says that Biogen has a deep pipeline which could offer upside surprise.
Earnings per share are expected to grow 18-31% per year over the next three years. The PE is 29.
Biogen’s share price is up 29% since our first buy recommendation this year in March. The price broke through upside resistance yesterday. Watch for another run-up now, and use stop-loss orders.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom