Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
Stock number one: DR Horton Inc.
Homebuilder Earnings Mixed As Prices Sap Demand—USA Today
D.R. Horton (DHI), PulteGroup (PHM), Ryland Group (RYL) and M/I Homes (MHO) all reported earnings before the open, with D.R. Horton strong across the board while its peers missed or mixed results. Those reports came on top of the week's earlier news that sales of both new and existing homes declined in March as rising prices and low inventories have slowed the housing market's recovery.
Trailing PE: 15; Forward PE: 11
Estimate Trend: Mixed
Ransom Note Trendline: Hold DR Horton
Stock number two: The Boeing Company
Apple poised for record gains on solid earnings—Yahoo Finance
Apple Inc. is having one of its best days in months on Thursday as investors hail solid earnings and a generous capital return program…. Apple Inc. climbed 7.8%, extending gains from Wednesday’s after-hours session as the firm said it would enact a 7-for-1 stock split. In the computer-maker’s earnings report, Apple also said quarterly profit rose by 7%, and that it would increase its share buyback program to $90 billion from $60 billion.
Trailing PE: 14; Forward PE: 12
Estimate Trend: Up
Ransom Note Trendline: Buy Apple
Stock number three: Amazon.com Inc.
Amazon Earnings Preview: Is the online king buying Sears?!?--Yahoo Finance- Breakout
After months of product announcements and price tweaks Amazon (AMZN) will finally talk numbers tonight after the closing bell. Analysts are officially expecting earnings of 23-cents per share on $19.43 billion in revenues. With shares off $75 since Amazon's last earnings report and the company's famous disdain for profits, shareholders are simply hoping for anything better than agonizing. There's no shortage of questions surrounding the world's largest online retailer. In just the last 3 months Amazon has raised the price of its Prime subscription, secured a deal to stream HBO programs, released a voice-activated set-top box and is still expanding into local delivery.
Trailing PE: 566; Forward PE: 79
Estimate Trend: Up
Ransom Note Trendline: Avoid Amazon