Sustainable Investors Seek Profits From Seeds, Water Systems
Sustainable Investors Seek Profits From Seeds, Water Systems
Chevron, Exxon Boost Dow; Crude Oil Closes at Five-Week High
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Pocketing a decent return and protecting the environment are not mutually exclusive, said Bruce Kahn, portfolio manager for Sustainable Insight Capital Management. Kahn said risk adjusted returns are better for companies that make the environment and corporate governance high priorities. He added that investors need to understand farm systems and dynamics, not just select the company with the highest priced seeds or irrigation equipment. Furthermore, he advocated watching weather trends like El Nino when it comes to water investments. Finally, Kahn said that precision farming may be the standard in America, yet it is still new to the rest of the world.
Crude oil extended gains achieved since Friday, closing Tuesday’s session at its highest level since August 31st. That triggered a rally in energy, pushing Dow components Chevron (CVX) and Exxon Mobil (XOM) sharply higher. Stocks closed mixed as a surge in the energy sector pulled the Dow higher, while a selloff in biotech weighed on the Nasdaq. Meanwhile, the S&P 500 fell after being caught in the middle of the two for much of the session. EnerSys (ENS) jumped on reports Johnson Controls (JCI) is interested in a takeover. Johnson, which specializes in temperature regulation technology, could be looking at a deal worth more than $3 billion. Global growth is expected to take a hit this quarter on lower commodity prices and increased volatility, according to the IMF.
DNA sequencing company Illumina (ILMN) plummeted in midday trading Tuesday after reporting disappointing preliminary sales for its third quarter. The company said weak instrument sales performance in Europe and the Asia-Pacific was to blame. Stocks moved lower as the biotech sector suffered another selloff. Biotech stocks have suffered from massive declines over the past two weeks after Democratic presidential candidate Hillary Clinton vowed to address industry price gouging. The Container Store (TCS) slumped after missing quarterly estimates on its top- and bottom-lines. Earnings fell 62% over the quarter, weighed on by increased promotional spending. Total revenue increased just over 1%.
In Tuesday's Analysts' Actions, Twitter's (TWTR) outlook seems cheery while CBS (CBS) and Skyworks Solutions (SWKS) have their price targets cut at one Wall Street firm. Twitter was upgraded to BUY from HOLD at Topeka Capital Markets Tuesday morning. Analysts approve Jack Dorsey as its permanent CEO. It appears that Twitter now has the potential to move forward. Another positive is the announcement that Adam Bain is its new Chief Operating Officer. He will help run the microblogging service as Dorsey juggles his CEO roles at two companies. The firm is keeping its $35 price target. Meanwhile, analysts at Topeka trimmed CBS' price target to $65 from $67. The reason for this is that $80 million of revenue will be moved out of its third quarter entertainment line, into its fourth quarter. This reflects the timing of its new streaming deal with Amazon (AMZN). The two recently announced the extension of their current content licensing agreement. The firm is still keeping its BUY rating on the stock. The same firm lowered Skyworks Solutions' price target to $100 from $120, citing near term uncertainty. But, analysts are keeping their BUY rating as the company announced plans to acquire semiconductor company PMC-Sierra (PMCS). The firm added that Skyworks is trying hard to achieve scale. TheStreet’s U-Jin Lee reports in New York.
PepsiCo (PEP) posted 3rd quarter profit that topped analysts' estimates and raised its forecast for the year after the company's North American snack and beverage businesses were helped by higher prices. PepsiCo now anticipates a 9% increase in 2015 core earnings per share growth versus the previous estimate of 8%. Meanwhile, a major scandal is erupting in the multi-billion dollar industry of fantasy sports. The New York Times report the online and unregulated business in which players assemble their fantasy teams with real athletes. Regulators are asking for information from employees of FanDuel and DraftKings about whether they are taking information--that only they know--and using it to make money on other fantasy sports sites. Volkswagen's CEO says massive cost cuts are needed to manage the emissions scandal but promised to limit the impact on jobs.
In Monday's analysts' actions, AutoZone (AZO) and Delta Air Lines (DAL) are getting some positive nods from Wall Street firms, while Union Pacific (UNP) sees its ratings lowered. Oppenheimer upgraded AutoZone to OUTPERFORM from PERFORM with a $850 price target. Analysts said the company is one of the 'best-run and most return disciplined retailers.' Looking ahead, Oppenheimer noted that sales will be boosted by better product availability. The firm is especially bullish on the company's new strategic initiatives. In another note, Deutsche Bank lifted Delta Air Lines' price target to $51 from $50 due to lower fuel prices. Analysts said the company reported better-than-expected revenue trends for the month of September. The firm is keeping its BUY rating on the stock, but some risks include economic uncertainty and government regulation. Meanwhile, analysts are not so optimistic on Union Pacific's path. The railroad company was downgraded at Barclays to EQUAL WEIGHT from OVERWEIGHT and its price target dropped to $92 from $108. Some industrial headwinds include the strong U.S. dollar and higher relative inventory levels. Adding to that, analysts cited softer trucking data. TheStreet’s U-Jin Lee reports from New York.
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