This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer's Action Alerts PLUS

Weekly Roundup

By Jim Cramer and the AAP Team | 2017-02-17 17:05:34.0

Markets surged to new highs again this week as strong earnings and macroeconomic data combined with upbeat commentary from Federal Reserve Chair Janet Yellen and talk about potential tax reform to keep investors interested in the equity rally. Next week, all eyes will be on the retail sector, whose department stores will flood the market with earnings reports in a fragile time for retail stocks.

For this week, Treasury yields were roughly flat despite an uptick in the middle of the week while Yellen testified on Capitol Hill (more below). The dollar traded in a similar fashion, trending stronger versus the euro in the beginning and middle of the week before pulling back toward the end of the week. Gold was flat for the beginning of the week before trending higher to close out the week as investors gained more appreciation for the underlying risks in the market. Lastly, oil was volatile throughout the week yet remained in its low-$50s range, where it has stagnated since the beginning of the year.

Fourth-quarter equivalent earnings are nearing a close and have been relatively positive versus expectations thus far, with 67% of companies reporting a positive EPS surprise. Within the portfolio, PepsiCo, Cimarex, Cisco and Kraft Heinz reported earnings this week.

PepsiCo (PEP:NYSE) reported a bottom-line beat with its fourth-quarter results, as EPS of $1.20 (up 15% on the previous-year period on a core constant-currency basis) topped consensus of $1.16 a share. Revenue for the quarter of $19.52 billion (up 5% on a net basis) was roughly in line with consensus. Importantly, the company announced a 7% increase to its annualized dividend, moving the payment up to $3.22 a share from $3.01. The increase will be effective for the June payment and raises the yield to roughly 3%. PEP reported 3.7% organic revenue growth, roughly in line with consensus. The growth was driven by both volume and price, representing demand for PEP's products and the company's ability to leverage its brand names. By segment, core organic growth (which excludes the 53rd week in 2016) was 3% in Frito Lay-North America, flat in Quaker Foods North America, 9% in Latin America, 2% in North America Beverages, 5% in Europe and 5% in Asia/Middle East/North Africa. Each segment was in line or better than Street expectations for the quarter. We note that Latin America saw the largest impact from currency headwinds (8% hit).

Cimarex (XEC:NYSE) reported a top-line beat with its fourth-quarter results after Wednesday's close. Revenues of $382.2 million (up 23% year over year) came in better than consensus of $366.4 million while EPS of $0.60 was roughly in line with Street estimates. Within the quarter, the slightly weak EPS was driven primarily by taxes while the other important metrics, such as production and cash flow generation, were largely in line or better than expectations. Overall production of 960 million cubic feet equivalent per day (MMcfe/d) was within the company's guidance range of 945-985 MMcfe/d. While the results were slightly lower than consensus, strong performance in the Permian is a positive that is likely to keep investors at bay, and total oil production increased sequentially. Cash flow came in at $2.30 per share, beating consensus expectations of $2.15.

Cisco (CSCO:Nasdaq) reported a top- and bottom-line beat with its fiscal-second- quarter results after Wednesday's close as revenues of $11.58 billion (down 2.9% year over year) edged out consensus of $11.56 billion and EPS of $0.57 came in 1 cent ahead of consensus expectations. Importantly, the company raised its quarterly dividend by 12%, increasing the payout to $0.29 a share, or $1.16 on an annual basis, equating to roughly a 3.5% dividend yield. Digging deeper into the quarter, product revenue was down 4% year over year (roughly in line with consensus) while service revenue remained strong, up 5% year over year (slightly higher than consensus). Although product revenue was down overall, the security division continued to perform well, increasing 14% year over year. Routing and Switching -- some of the legacy businesses -- remained a drag on overall results, however, decreasing 10% and 5%, respectively. By geography, Americas was down 3%, EMEA came in flat, and APJC was down 3%. Excitingly, the company's transformation continued to progress in a positive direction, with 31% of sales now based on recurring revenue streams.

Kraft Heinz (KHC:Nasdaq) reported a top- and bottom-line beat with its fourth-quarter results after Wednesday's close as revenues of $6.86 billion (down 3.7% year over year) topped consensus of $6.76 billion and EPS of $0.91 came in 4 cents better than consensus. Within the quarter, organic sales grew 1.6% year over year, with strength in volumes more than offsetting a slight decline in pricing. While the increase was on top of a 3.1% comp decline in the prior year, the organic results were still better than sell-side expectations. Volume growth was strong across all business segments. The U.S. was strong, with organic sales coming in up 1.7% year over year (0.3% pricing, 1.4% volume/mix) and EBITDA margin 31% (up 440 basis points year over year), roughly in line with expectations. The U.S. represents about 70% of sales, a positive trait in this environment. Organic revenue from Rest of World was also solid at 4.5% higher year over year on strength from volumes and pricing. KHC appears to be outperforming its peers even before the company ramps innovation expected for the rest of the year.

On the economic front, the market was busy this week after a relatively slow period of macro reports in the previous week. Although all eyes were on Yellen's testimony in the middle of the week, we want to make sure to highlight several other reports that provide a read on the economy.

The week kicked off hot when the Labor Department announced Tuesday that the producer price index (PPI) rose 0.6% in January versus expectations for a 0.3% increase. This marked the largest increase since September 2012 and followed a downwardly revised 0.2% uptick in December. While the surge in January was more than expected and would appear to indicate accelerating inflation, the gain through the prior 12 months only increased 1.6% due to the downward revisions in the previous months. This was still higher than expectations, however.

A large portion of the increase for January was due to increases in energy prices and trade services, both of which can be volatile from month to month. The core PPI, which excludes energy and food costs, increased 0.2% in January and 1.6% in the 12 months through January, slightly below expectations.

From a broader perspective, the PPI measures prices from the perspective of the seller, and thus many investors use the PPI figure as a means to predict the consumer price index (CPI). The philosophy is that many producers and retailers can pass on cost increases to the consumer. However, this is not necessarily the case and consumers do not always pay along the same trend to which businesses pay. Even so, this is generally a good way to try to predict inflation, which the CPI later can validate or disprove. Recall that inflation is one of the key measures tracked by the Fed for determining rate-hike decisions.

On that note, on Wednesday the Labor Department reported that the CPI increased 0.6% in January, better than expectations for a 0.3% gain and the largest monthly increase since February 2013. In the 12 months through January, the CPI was up 2.5%, marking the biggest year-over-year gain since March 2012. The core CPI, which strips out food and energy costs, rose 0.3% in January after a 0.2% gain in December. The core CPI was higher by 2.3% in the 12 months through January.

From a higher level, the Fed tracks an inflation measure (core PCE index) that is running below the core CPI. Inflation continues to be a closely tracked figure for the Fed, as the other major indicator -- the labor market -- has proven to be more than healthy over the long term. Subdued inflation has been an item of concern in recent years as the failure of firms to command higher prices could potentially indicate a weakening economy lacking enough demand or income growth. However, data in recent months have been more encouraging and lower energy prices, which had been a major culprit of lower prices recently, finally seem to be recovering and have stabilized in recent months. With January's inflation data in the books, the economy appears to be providing the Fed with the firepower it needs to reach those three rate hikes on which investors are so intently focused.

Yellen helped confirm this view in her two-day testimony (ended Wednesday) on Capitol Hill, even if she kept her statements relatively guarded, as she has in recent years. Specifically, Yellen proclaimed that the Fed would like raise short-term interest rates "at our upcoming meetings," indicating that the economy remains strong enough to support the gradually rising rate environment to which the Fed has been hinting in its recent policy meetings. While no specific timetable was set, the market's expectations for a rate hike at the March 14-15 policy meeting did edge up slightly following Yellen's commentary, although the predictions continue to indicate a very small chance for a March increase. Either way, Yellen confirmed that holding off on raising interest rates for too long "would be unwise" and could potentially result in too rapid of a pace in the future, a development that could trigger recessionary pressures.

Overall, Yellen was upbeat about the economy, focusing on the strong labor market and improving inflation (as noted above), but she remained steadfast in her commitment for the Fed to stand its ground, not predicting fiscal policies under the new administration until such moves are officially put into motion. Specifically, Yellen said the FOMC "[does not] want to base current policy on speculation about what might come down the line." For now, the Fed appears to be data dependent and in a "wait and see" approach when it comes to the new administration's policy actions. The generally positive commentary regarding the state of the economy, however, did entice investors to dump bonds and yields subsequently rose higher on expectations for rate hikes in the near future.

Also on Wednesday, the Commerce Department reported that retail sales increased 0.4% in January, better than expectations for a 0.1% uptick and offering another positive reading on the economy to kick off 2017. Importantly, the better-than-expected reading could be one of the first firm indicators that improving consumer sentiment and slowing wage growth are both resulting in stronger spending, which is a huge boost for the economy. Recall that consumer spending accounts for more than two- thirds of overall GDP.

Total retail sales were up 5.6% in January from a year earlier. Excluding spending on autos and gasoline, retail sales were up an even more impressive 0.7% in January, the largest since last April. As has become the typical trend, department-store sales did fall 3.2% in January from 2016 while sales at non-store retailers (which includes online shopping) surged another 12% from the prior year. This type of shift has been evident in the way bricks-and-mortar retail stocks have been trading in recent months. Even so, the widespread growth across all the major spending categories is a positive sign moving forward, especially as investors have continued to buy into equities on the hopes for potential tax reform and economic growth under the new administration.

On Thursday, the Department of Labor reported that initial jobless claims for the week ending Feb. 11 were 239,000, an increase of 5,000 claims from the prior week's unrevised numbers and 6,000 claims lower than the market's already-low expectations. The figure remained low even after the previous week's report showed the lowest number of claims in the prior 12 weeks. The overall trend continues to remain strong with claims having remained below 300,000 -- the threshold typically used to categorize a healthy jobs market -- for an astounding 102 straight weeks, the longest streak since 1970. Claims have remained under 275,000 since the middle of November. The four-week moving average for claims (used as a gauge to offset volatility in the weekly numbers) rose slightly by 500 claims to 245,250 last week. The report follows the better-than-expected nonfarm payrolls figure reported at the beginning of February, indicating that underlying strength in the labor market continues to support economic growth in the country. The figures highlighting the strength in the labor market are consistent with Yellen's commentary, which has focused on such strength as a main reason for the upward trajectory of the economy.

Also on Thursday, the Commerce Department reported that housing starts dropped 2.6% in January to a seasonally adjusted 1.25 million units, above expectations for a pace of 1.23 million. While expectations had called for a flat reading month over month, December's numbers were actually revised higher to a pace of 1.28 million, up from 1.23 million. Reading under the headlines, single-family-unit construction ticked higher while multifamily units have begun to show signs of tapering off. Single- family construction climbed 1.9% in January, while multifamily construction tumbled 10.2%. Even so, multifamily starts remain at the highest levels seen in decades as demand for apartment buildings, especially in the luxury markets, has skyrocketed in recent years.

The uptick in single-family home construction is viewed as a positive as the activity may indicate that builders are ready to move forward with plans now that the election uncertainty is out of the way. Regardless, the housing market needs more supply of homes available to combat rising prices in recent years. Whereas multifamily activity has helped buoy overall construction, single-family activity has been below historical levels and will need to continue to show strength in order to support increasing demand. Taking a step back, we remind members that housing figures tend to be volatile from month to month.

On the commodity front, the story surrounding crude oil prices was ultimately the same as it has been since the beginning of the year. A lack of any market-shaking news kept the commodity in its $50-$55 range, which prices have failed to break through, in either direction, since trading began in 2017.

On Monday, oil prices pulled back sharply after Friday's surge, sparked by reports indicating almost full cooperation on the production cuts agreed to by OPEC members and non-OPEC members. With prices ending last week basically at their highs for the year, traders shifted their focus back to areas of the market that could negatively impact the seemingly improving supply/demand dynamic. Thus, investors did not take well to news that Libya and Nigeria, which are both exempt from production cuts, increased production in January.

Prices rebounded slightly on Tuesday on little news, but the gains were somewhat offset by losses on Wednesday following another inventory report showing domestic stockpile builds. The U.S. Energy Information Administration (EIA) reported that crude inventories rose by 9.5 million barrels in the week ended last Friday, reaching 518 million barrels, the highest level in data going back to 1982. The results trounced expectations for a 2.9 million barrel build. Lower implied gasoline demand was also a negative, with gasoline stockpiles reaching a record high. Demand will be a key determinant for prices as we continue to move through the year, especially if U.S. shale producers continue to ramp production.

On Thursday, the scale tipped back in favor of optimism as a Reuters report indicated that OPEC could be prepared to extend its initial six-month production-cut deal, or make more severe cuts, if oil supplies do not decline as much as expected, according to resources. Concerns regarding the prior day's inventory report, however, did cap any upside above the $54 threshold.

We recognize that this story has become extremely repetitive in the recent months. Day by day, the sentiment shifts from optimism to pessimism regarding the balance of OPEC production cuts versus domestic production. For now, this dynamic appears poised to continue until the market is provided some sort of tangible evidence of further supply cuts or of steadily increasing demand. The year is long, and we have a ways to go, but the short term is likely to continue on the trend of bouncing around the lower $50s range. Investors appear willing to push prices higher, but they eagerly await evidence that will allow them to do so.

Within the portfolio this week, we added to our Cimarex, Snap On (SNA:NYSE) and Danaher (DHR:NYSE) positions while we cut our stakes in Panera, T.J. Maxx, Arconic and Cisco. We also downgraded Apache and Adobe to Twos.

On our three additions, we took advantage of down days to add to these new positions as we look to scale into the names and build full stakes for the long term. We have room to continue to add to XEC, SNA and DHR on any further weakness.

As for T.J. Maxx (TJX:NYSE), we trimmed our position on the recent uptrend toward our cost basis simply as a way of lessening our exposure to the retail space. We still have a relatively large position in the name and we believe its business model can transcend the issues facing the broader bricks-and-mortar retail space, but we wanted to de-risk the portfolio from the difficult retail backdrop.

On Panera (PNRA:Nasdaq), we wanted to take advantage of the opportunity to trim our position following the recent rally, which was sparked by the company’s strong earnings report and encouraging conference call last week.

On Arconic (ARNC:NYSE), we found it prudent to book profits in the name as the stock crossed the $30 threshold. The incredible run in ARNC shares in the past couple of weeks had caused the position to grow to over 3.8% of the portfolio, so we made the decision to turn our virtual profits into actual money as a way not only to capitalize on the run but also to lessen the risk associated with what can be a volatile activist proxy battle.

Lastly, on Cisco (CSCO:Nasdaq), we trimmed our position slightly prior to earnings as we wanted to take advantage of the rally since mid-December. We purposely kept a large position in order to continue to benefit from the company's ongoing shift toward software and security as well as any potential tailwind from tax reform and cash repatriation.

Moving on to the broader market, as we mentioned, fourth-quarter earnings are winding down and have been better than expected, proving to be somewhat positive compared to estimates. Total fourth-quarter earnings growth is up 5.8% year over year; of the 337 non-financials that reported, earnings growth is 5.1% versus expectations for an overall 4.9% increase throughout the season. Revenues are up 4.0% versus expectations throughout the season for a 3.99% increase; 66.5% of companies beat EPS expectations, 22.2% missed the mark and 11.3% were in line with consensus. On a year-over-year comparison basis, 73.6% have beaten the prior year's EPS results, 23.6% have come up short and 2.8% have been virtually in line. Information tech, financials and consumer discretionary have had the strongest performance versus estimates thus far, whereas real estate, telecom and utilities have posted the worst results in the S&P 500.

Next week, 50 companies in the S&P 500 will report earnings. Within the portfolio, T.J. Maxx, Apache (APA:NYSE) and HPE (HPE:NYSE) will report. Other key earnings reports for the market include: Advance Auto Parts (AAP), Cracker Barrel (CBRL), Ecolab (ECL), Genuine Parts (GPC), Henry Schein (HSIC), Home Depot (HD), Lumber Liquidators (LL), Macy's (M), McDermott (MDR), Medtronic (MDT), Red Robin (RRGB), Walmart (WMT), American Water Works (AWK), Edison (EIX), First Solar (FSLR), FirstEnergy (FE), Papa John's (PZZA), XPO Logistics (XPO), ClubCorp (MYCC), Eaton Vance (EV), Garmin (GRMN), Host Hotels (HST), Mobileye (MBLY), Norwegian Cruise Line (NCLH), Six Flags (SIX), Boston Beer (SAM), Cheesecake Factory (CAKE), Energy Transfer Partners (ETP), Energy Transfer Equity (ETE), Fitbit (FIT), HP (HPQ), L Brands (LB), Sunoco LP (SUN), Square (SQ), Tesla (TSLA), AMC Networks (AMCX), Chesapeake Energy (CHK), Cinemark (CNK), Hormel Foods (HRL), Iron Mountain (IRM), Kate Spade (KATE), Kohl's (KSS), Leidos (LDOS), LendingTree (TREE), Pinnacle Foods (PF), Sprouts (SFM), Wayfair (W), Acacia Communications (ACIA), (BIDU), BioMarin (BMRN), Gap (GPS), Herbalife (HLF), IMAX (IMAX), Intuit (INTU), Live Nation (LYV), Nordstrom (JWN), Splunk (SPLK), Zoe's Kitchen (ZOES), Foot Locker (FL), JC Penney (JCP), Magellan Health (MGLN) and Royal Bank of Canada (RY).

Economic Data (*all times ET)


Monday (2/20) – Presidents Day

Tuesday (2/21)

Markit Manufacturing PMI (9:45): 54.8 expected

Wednesday (2/22)

Mortgage Applications (7:00):

Existing Home Sales (10:00): 5.55 million expected

FOMC Meeting Minutes (14:00):

Thursday (2/23)

Initial Jobless Claims (8:30):

Continuing Claims (8:30):

Markit Service PMI (9:45):

Markit Composite PMI (9:45):

Bloomberg Consumer Comfort (9:45):

Friday (2/24)

New Home Sales (10:00): 568k expected

U Mich Consumer Sentiment (10:00): 96.8 expected


Monday (2/20)

Germany PPI MoM (2:00):

Eurozone Consumer Confidence (10:00):

Japan Nikkei Manufacturing PMI (19:30):

Japan All Industry Activity Index MoM (23:30):

Tuesday (2/21)

Germany Markit Manufacturing PMI (3:30):

Germany Markit Services PMI (3:30):

Eurozone Markit Manufacturing PMI (4:00):

Eurozone Markit Services PMI (4:00):

China House Price Index YoY (20:20):

Wednesday (2/22)

Germany IFO Business Climate (4:00):

Germany IFO Expectations (4:00):

Germany IFO Current Conditions (4:00):

UK Business Investment YoY (4:30):

UK GDP Growth Rate YoY (4:30): 2.2% expected

UK GDP Growth Rate QoQ (4:30): 0.6% expected

Eurozone CPI MoM (5:00):

Eurozone CPI YoY (5:00):

Eurozone Core CPI YoY (5:00):

Thursday (2/23)

Germany GFK Consumer Confidence (2:00):

Germany GDP Growth Rate QoQ (2:00): 0.4% expected

Germany GDP Growth Rate YoY (2:00): 1.2% expected

Friday (2/24)

UK BBA Mortgage Approvals (4:30):

New folks, welcome aboard! You're reading the Weekly Roundup of the charitable trust that Jim talks about regularly on Mad Money and in his new bestseller, Get Rich Carefully. Jim put $3 million of his own money into this charitable trust so that you, the subscriber, can learn how he and the Action Alerts PLUS staff make decisions about a diversified portfolio and make money. You'll see every position in every stock, and we'll send you alerts BEFORE every trade. And best of all, all profits go to charity -- we've donated $1.8 million to date.

To learn more about how we construct and trade the portfolio, click on the "Getting Started" link directly above the "Weekly Roundup" headline.

We also want to be sure you're not confused about the terminology that Jim uses on his Mad Money television show: When you hear Jim refer to the charitable trust, he is talking about the trust that holds the Action Alerts PLUS portfolio. The gains from Action Alerts PLUS go to charity after the close of each trading year.

Here's the quick guide to the rating system, too: Ones are stocks we would buy right now, Twos are stocks that we'd buy on a pullback, Threes are stocks we would sell on strength and Fours are stocks we want to unload as soon as our trading restrictions allow.


Apple (AAPL:Nasdaq; $135.72; 820 shares; 4.06%; Sector: Technology): Shares outperformed the market again this week as the momentum in this name continues to ride high after the company's strong earnings report a couple of weeks back. We continue to believe the company has many growth levers to pull moving forward, including its bourgeoning Services business -- which is expected to double in the next four years and will be larger than a Fortune 100 company -- and emerging-markets opportunities. Importantly, we believe the shares should and will command an expanding multiple as investors begin to appreciate the Services business for its tremendous growth and recurring revenues, which provide visibility and are valued higher in the market. Of course, we cannot forget the potential for a major cash repatriation holiday. We believe the multiple expansion opportunity is significant, especially should investors begin valuing Apple as a consumer-products company, one with a recurring stream of merchandise and consistent revenue. Jim spoke about this concept on Mad Money this week and also in this Real Money article. We are raising our price target again this week to $150, which represents what we view as a conservative 15x fiscal 2018 consensus EPS estimates. As we explained, however, we see the opportunity for the multiple to expand further as the company continues to evolve.

American Electric Power (AEP:NYSE; $64.11; 1,000 shares; 2.34%; Sector: Utilities): Shares underperformed the market this week as the bond-proxy names took a hit as investors pushed equities to new highs. Our view on AEP has not changed and we continue to value the stock as a position to diversify the portfolio and provide steady income. We believe the dividend yield is attractive (and we believe it has the potential to grow under the company's outsized earnings growth) and we also like that the company stands to benefit under the new pro-energy administration, which isn't focused on completely eliminating coal. We maintain our One rating; even though we have seen a slight rally off the bottom, the stock still offers an attractive 3.7% dividend yield at these levels and provides the best future earnings growth prospects among its large-cap peers. We reiterate our $68 target.

Allergan (AGN:NYSE; $247.35; 550 shares; 4.96%; Sector: Health Care): Shares underperformed the market this week after a strong rally over the past couple of weeks. The company announced another acquisition this week that should continue to accelerate AGN's dominance in the global aesthetics business. Allergan announced it has entered into a definitive agreement to acquire Zeltiq Aesthetics (ZLTQ) for $56.50 per share, or $2.475 billion, in an all-cash transaction. ZLTQ is known for its flagship CoolSculpting system, which is an aesthetics procedure used to remove hard-to-target fat cells from the body. ZLTQ's proprietary system is the sales leader in this fast-growing cash-pay body-contouring segment of medical aesthetics. Importantly, this deal makes strategic sense for Allergan on many different fronts. As for any concerns regarding Allergan's potentially maturing franchises, such as Namenda and Restasis, the addition of Zeltiq provides protection and flexibility as the company waits for its "six stars" and other developmental pipeline assets to mature over the long term. From a growth perspective, 80% of CoolSculpting accounts are Allergan accounts, meaning that management already has a feel for the customer and vice versa. According to Bill Meury, chief commercial officer, "the single most important customer here, the common denominator, is the plastic surgeon, where we now have multiple offerings and touch points with not just CoolSculpting, but also with the recent acquisition of LifeCell and the flagship product, Alloderm." Even better, "50% of CoolSculpting patients are new to aesthetics. In that regard, CoolSculpting can be thought about as a gateway procedure to aesthetics, and the reverse is true for our facial injectable business." Management is using their cash balance strategically and opportunistically, building out the underappreciated pipeline for the future while also adding win-now assets, like LifeCell and CoolSculpting (which, of course, also offer future growth potential). Importantly, once this deal is approved, AGN will still have upwards of $10 billion in cash on hand -- not counting any near-term cash generation or dividends/sale proceeds from its Teva (TEVA) stake - - opening the opportunities for further accretive acquisitions and other shareholder value-generating activities. We reiterate our $270 target and see further upside in the longer term as AGN begins to execute on its pipeline opportunities.

Cimarex (XEC:NYSE; $132.02; 500 shares; 2.41%; Sector: Energy): Shares traded slightly higher this week even after a somewhat negative reaction to the company's earnings report. We made sure to pick up some additional shares on the decline on Thursday as we believe the opportunity into the end of 2017 and into 2018 is hard to ignore. Attracting some negative attention, the company increased drilling and completion (D&C) spending expectations by roughly 46% at the midpoint (from $600 million previously to $850 million-$900 million), equating to a total expected capex spend of $1.1 billion-$1.2 billion, while only increasing production expectations roughly 1% for the year. That being said, roughly two-thirds of spending is expected to be in the Permian, which continues to be the region with the most opportunity moving forward. In addition, the company has said that, at minimum, it will reinvest its cash flow in the year, leaving more room to the upside on spending and associated production (as current guidance can be funded primarily with cash flow from operations while there is additional cash on the balance sheet available). For 2017, total company production is projected to average 1.06 billion to 1.11 billion cubic feet equivalent per day (Bcfe/d), an increase of 13% at the midpoint from 2016 production levels (but only up 0.01 Bcfe/d, with oil production expected to lead year-over-year growth and be up 22%-27% (above Street expectations for +17%). Although first-quarter 2017 total production guidance is a bit weaker than expected (1.01-1.05 Bcfe/d versus the Street at 1.052 Bcfe/d), fourth-quarter 2017 total production is projected to increase 18%-22% over fourth-quarter 2016 levels. The real strength is expected to be in oil production in fourth-quarter 2017, as guidance implies roughly 60 million barrels a day versus consensus of 56 million. While the company has not provided 2018 guidance, the strong exit expected for 2017 implies strength heading into 2018. We reiterate our $150 target but see further upside into 2018.

Comcast (CMCSA:Nasdaq; $75.32; 1,000 shares; 2.75%; Sector: Consumer Discretionary): Shares underperformed the market this week on little news. The stock has somewhat cooled off since the company's strong earnings report that pushed shares to a new high. We continue to believe in the company's long-term strategy and diversified business model, but understand that investors are content to hold the name for now as the market focuses on the other earnings and dominant news. You can read our earnings analysis here. We reiterate our $85 target and would love to add on a pullback below $70.

Danaher (DHR:NYSE; $84.05; 600 shares; 1.84%; Sector: Life Sciences): Shares traded roughly flat this week on little news. We took advantage of a down day earlier in the week in order to add to our position. We have been patiently waiting to add to this name below our cost basis, but we are not sure we will get the chance. We continue to believe in this company's long-term transition following its Fortive (FTV:NYSE) separation, which left DHR with faster-growing and higher-margin businesses. We believe the leaner company is just beginning to profit from this separation and we expect shares to continue to tick higher in a measured fashion. In addition, from a broader perspective, we believe Agilent's (A:NYSE) strong results, reported earlier this week, in life sciences represent a positive sign for the industry and DHR. We will continue to look for opportunities to scale further into the name as we intend to build a full position. We reiterate our $94 target.

Facebook (FB:Nasdaq; $133.53; 1,000 shares; 4.87%; Sector: Technology): Shares traded lower this week as the stock remains stuck near its highs while investors sift through the implications of the upcoming "investment year." The stock has moved slightly higher over the past two weeks after an initial selloff on the company's earnings report, where management again pointed toward difficult compares and required investments for growth. You can read our recent earnings reaction here. Perhaps also pressuring the stock this week, executives from Snap Inc. rolled into New York to prepare the market for its impending IPO. While we understand the concerns from investors regarding Snapchat's competition and the flow of funds from FANG names that could be used to take positions in Snapchat, we continue to believe FB is far and away the more advanced and better-suited platform for digital advertisers -- not to mention the wide array of platforms (Messenger, WhatsApp, Instagram, etc.) the FB ecosystem offers as well as the virtual-reality opportunity. We have previously rebuked these concerns and we also spoke to Instagram's innovation with "Stories" (in past Weekly Roundups and in the earnings reaction linked above), which have competed very well with Snapchat's platform, impacting the growth of the early-stage camera company. We reiterate our $160 target on FB.

General Electric (GE:NYSE; $30.37; 2,350; 2.60%; Sector: Industrials): Shares climbed over $30 this week as CEO Jeff Immelt again appeared on Mad Money and investors bought the recent dip. This week's segment on Mad Money focused on GE's blossoming opportunity in the industrial internet, on which we have been focused since our initial investment in the name. GE's Predix platform is revolutionizing the way the industrial space operates, bringing the internet of things to machines and factories. The industrial internet, a term coined by GE, refers to the integration of big data, wireless networks and analytical tools with physical and industrial equipment, and Predix is bringing this mainstream. According to Immelt, "The proof of the pudding is reality. Our orders are growing 25% a year. We are kind of first among equals in the industrial internet. We can play. We can do this." That being said, we recognize that GE's massive size and footprint in almost all end markets make the industrial internet revolution a difficult concept to sell to the market. We understand that the transformation will take time, but we believe the opportunity is there for the long term. Due to the yield and the long-term opportunity over the coming years, we reiterate our One rating for now, although given the current weighting in the portfolio -- which we think accounts for the near-term risks -- we would likely not be buyers in the short term unless the stock fell to the $28 level, where we would review our standing. We reiterate our long-term $35 target as the company strives for $2 EPS in 2018.

Alphabet (GOOGL:Nasdaq; $846.55; 150 shares; 4.63%; Sector: Technology): Shares traded higher this week on little news yet were powered by the Nasdaq's strength, which has continued throughout the year. Diane Greene, senior VP of Google Cloud, presented this week at a Goldman Sachs conference and expressed confidence in the company's expanding cloud strategy. We have focused commentary in the past on the cloud opportunity as one of the ways Google will look to continue to diversify away from a reliance on its core Search business, in addition to YouTube, Waymo, consumer products and other revenue streams. You can read some of our analysis on Google Cloud here and here. In this bulletin we discuss our confidence in Google's long- term business model. We believe the company has many growth levers to pull moving forward and we are confident in management's innovation and execution capabilities required to continue to push the company toward new highs. We reiterate our $1,000 price target on GOOGL.

Hewlett Packard Enterprise (HPE:NYSE; $24.40; 2,000 shares; 1.78%; Sector: Tech hardware): Shares traded roughly in line with the market this week, moving higher on little news. The stock has trended higher off its January lows when several different issues were front-facing for the company. You can read our analyses here and here. The stock rebounded following Computer Sciences' (CSC) positive earnings report a couple of weeks back. On the conference call, CSC management reiterated their confidence that the impending merger with HPE Enterprise Services is on track to close on or about April 1. Following the call, the two companies announced the board of directors for the new combined company. The market took all the news positively, helping to rocket shares of both CSC and HPE higher. HPE will report next week, where we would be unsurprised to see some top-line weakness due to macro and public cloud headwinds, as well as some disappointing numbers highlighted by Cisco in its legacy business, as noted by its earnings this week. That being said, we expect HPE's restricting and value creation to be the main focus for investors. We would likely be buyers on any pullback, should there be one, following the release. We reiterate our $27 target.

Magellan Midstream Partners (MMP:NYSE; $80.17; 300 shares; 0.88%; Sector: Energy): Shares traded roughly flat with the market this week despite a pullback on Friday. We continue to look for opportunities to bulk up our position and would eye levels around $78-$79, as we recommended members to buy in that similar range at the beginning of last week. That being said, we reiterate our One rating for the upside potential with the partnership's growth project initiatives and the new administration's pipeline- friendly policies, as well as the steady (and increasing) 4.3% dividend yield. We maintain our $89 target.

Newell Brands (NWL:NYSE; $46.64; 1,900 shares; 3.23%; Sector: Consumer Discretionary): Shares traded roughly flat this week on little news, trending higher in the beginning of the week as investors continued to support the rally that began following the initial selloff after the company's earnings report last week but cooling off by the end the week. We followed up on our earnings analysis, explaining why we believe NWL remains a good long-term bet, even if it may take a bit longer to reach our target levels. Ultimately, we believe NWL offers risk/reward skewed to the upside now that many who were down on the transformation have been washed out following the earnings report. While shares will not follow a linear trajectory, we believe CEO Mike Polk has the team to execute on the company's shift to higher-growth businesses. We reiterate our long-term $60 target.

NXP Semiconductors (NXPI:Nasdaq; $102.40; 650 shares; 2.43%; Sector: Information Technology): Shares traded roughly flat this week on little news, slowing down after a short-lived rally in recent weeks sparked by the company's earnings report, where it expressed confidence in the closing of its Standard Products divestiture, and growing positive sentiment toward the name in the market as investors recognize the opportunity with or without Qualcomm (QCOM). We have held onto this name as we believe the company is potentially worth even more should the QCOM deal ultimately be rejected. While we believe the deal will likely go through (although there is, of course, risk), we believe the stock is a solid anchor for the portfolio as we await official word. We reiterate our $110 target.

PepsiCo (PEP:NYSE; $108.15; 1,000 shares; 3.94%; Sector: Consumer Staples): Shares traded higher this week despite an initial selloff on what was a strong earnings report accompanied by predictably conservative guidance. Management sees core EPS of $5.09 for full-year 2017, below consensus of $5.16, as their expectations are "tempered by a cautious macro outlook." PEP has a history of being conservative, something we view as smart in this increasingly difficult-to-predict macro and geopolitical landscape. As CFO Hugh Johnston highlighted on the call, "the revenue growth … is reflective of the fact that we are certainly cautious about the macro and the volatility; and as we do that, we give guidance that we have a very high confidence level that we can hit -- and ideally, if the world turned out to be a better place, we can beat." While these expectations assume core constant-currency growth of 8% on the bottom line, the strong results are expected to be offset by a 3% drag from foreign exchange translation (based on current market-consensus rates). The core expected growth of 8% is largely in line to slightly better than sell-side estimates. As for the currency issues, management specifically mentioned on the call that "a majority of our major currencies -- including the Mexican peso, the pound, the Egyptian pound and Turkish lira and others -- are expected to devalue relative to the dollar based on the current consensus outlook." On the top line, core revenue growth is expected to be "at least 3%," which would be slightly below this year's results, if the company only reached the bare minimum. As we have highlighted since we have owned the position (and in this note), management's conservative nature leaves room for upside -- especially as their domestic and global investments continue to bear fruit. Pepsi's under-promise and over-deliver model has worked in recent years (it has exceeded initial core constant-currency EPS guidance by 2% or so in recent years) and we do not view this initial outlook as anything out of the ordinary. We continue to view PEP as a core holding and maintain our One rating, even though we would wait for shares to drop closer to $100 given its already-large weighting in the portfolio. The increase in the dividend -- which was announced along with the earnings report -- just amplifies the steady income the investment already provides. We can expect the company to continue to increase its payouts in coming years. We view any decline over the next few days as a buying opportunity for the long term for those who are under-invested, especially with PEP's strong dividend yield (backed by consistent cash flow generation) providing steady income and downside support in an uncertain macro. We reiterate our $115 target although we see upside throughout the year as the company is poised for beat-and-raise quarters after a difficult setup in the first quarter.

Snap-On (SNA:NYSE; $172.57; 250 shares; 1.57%; Sector: Industrials): Shares traded higher this week on little news, but the stock continues to rebound from its post-earnings selloff. As has been discussed several times on Mad Money, this name tends to sell off following earnings before ultimately climbing back as investors appreciate the consistent organic growth. We added to our name this week and will continue to look for any unwarranted selloffs that can offer opportunities for us to scale into a full position. We reiterate our $190 target.


Adobe (ADBE:Nasdaq; $119.67; 750 shares; 3.27%; Sector: Technology): Shares traded higher this week, roughly in line with the market as the company presented at a Goldman Sachs conference and also appeared on Mad Money. Bottom line, we continue to like Adobe's long-term prospects as it sits in the sweet spot of the digital transformation that major corporations are undertaking in order to keep up with the ever-evolving consumer landscape. Every company and individual has a story to tell and Adobe's helping them tell it, whether that be individual artists and designers or large Fortune 500 companies. At the Goldman conference this week, ADBE CFO Mark Garrett reiterated the company's 2015-18 expected financial targets of reaching about 20% revenue CAGR, translating to about 30% growth in EPS. ADBE has delivered on its plans to transform the business in recent years and we believe it can also achieve these targets. That being said, even though we believe shares have more room to run, we are downgrading the stock to Two for now as we would wait until a pullback below $110 to add back to the position given the stock's relatively large weighting in the portfolio. We want to make it clear that this downgrade has nothing to do with our faith in the company's business -- we believe Adobe will be growing for years to come, but we simply recognize the run in the short term. We reiterate our $125 target, but will be reviewing this when the company reports earnings in March.

Apache (APA:NYSE; $55.44; 1,950 shares; 3.94%; Sector: Energy): Shares traded lower this week after the company announced new well results for its Alpine High play. Although we believe investors have overlooked the fact that initial test-well rates are not representative of full field development over the long term, we understand the disappointment from the investment community and own that we were early to the trade. That being said, with any benefits from Alpine High likely to be wiped out by the decline in shares in the short term -- and with all the hype stripped from the story -- we believe any positive results in the future will be met with upside surprise. For now, the Alpine High oil success is still unproven (even though the wet gas acreage does suggest strong economics) and investors are approaching the thesis with skepticism. All in, the actual batch of initial production (IP) rates announced for these newly updated wells (King Hidalgo, Spruce State, Weissmies and Redwood) were lower on a lateral-adjusted basis (i.e., adjusted for the length covered) than previous well results for Alpine High in comparable regions within the same target zones. Given that it is difficult to quantify the long-term production curves of these wells at this early stage, investors understandably reacted to the news negatively, awaiting confirmation in the future that the company can meet the hype initially projected when management first announced Alpine High last fall. We expect management to provide additional Alpine High well results throughout the year, as 13 wells are expected to be drilled in the first half of the year and several others are awaiting completion. Until then, investors are likely to take a "wait and see" approach, booking profits from last year's gains as expectations are rebalanced for the short term. We downgraded the name to Two from One on this news as we recognize that the Street must adjust to the idea that management hyped the Alpine High opportunity too much in the short term. Even though the current levels appear to reflect almost no potential benefit from the play in the long term, we would not be surprised to see additional pressure in the short term, as the market rebalances expectations. The company reports earnings next week, when management will have a chance to adjust the narrative. We reiterate our long-term $77 target.

Arconic (ARNC:NYSE; $29.91; 3,500 shares; 3.82%; Sector: Metals & Mining): Shares underperformed this week as the stock took a breather from its massive rally in the past couple of weeks as investors salivate over the ongoing proxy battle between the current board of directors and activist Elliott Management. Following our downgrade to Two last week, we trimmed our position this week in order to protect our gains in the name (more than 40%). Importantly, we are still leaving a large portion of the position on the table in order to continue to benefit from the activist intervention at the company. Whether current CEO Klaus Kleinfeld remains or is removed, we believe there are significant operational improvements to be achieved, commanding a higher multiple for shares and raising numbers on the bottom line. In addition, Elliott's involvement in and of itself with the company ignites investor interest in the name given the history of determined and meticulous activism from the firm. We reiterate our $31 target.

Citigroup (C:NYSE; $60.17; 1,750 shares; 3.84%; Sector: Financials): Shares moved higher and outperformed the market this week as the financials led the market at the beginning of the week while Treasury yields surged higher. The market's firming expectations for three rate hikes in 2017 not only add support but also provide upside to financial valuations -- with Citi perhaps being one of the biggest beneficiaries. As we have stated in the past, Citigroup has the most excess capital of any bank, but it has not yet gotten the green light from regulators to be as aggressive as it would like in its return of capital to shareholders. The company aims to buy back at least 7% of the shares in 2017, all of which would likely be accretive given the discount to tangible book value. With deregulation coming down the pipeline, we believe this is a realistic goal. In addition, Citi has ample room to bulk up its dividend further to become more in line with large-cap peers. We view Citi as the cheapest large-cap bank in the space and we are raising our price target to $64 to be roughly in line with the company's latest tangible book value reported along with the recent quarter. We believe the improving macro backdrop for financials can help C shares bridge their gap between the current valuation and tangible book value.

Costco Wholesale (COST:Nasdaq; $175.86; 250 shares; 1.60%; Sector: Consumer Staples): Shares traded higher on little news this week, eclipsing our $175 price target. We decided to trim the name slightly as the stock trades above our $175 target. Interest in COST shares has been reignited ever since the company's strong January sales report, which showed continued strength in traffic and ongoing benefits from the membership-card transition. While we continue to believe COST's business model can transcend the difficult retail backdrop (given its membership model, customer loyalty, low costs, etc.), we wanted to protect our profits on this recent rally with shares more than 17% above our cost basis. We would be buyers should shares drop back into the mid- to low $160s, and we are keeping some of the position on the table in order to benefit from any additional strength heading into the company's earnings report at the beginning of March. We reiterate our $175 target for now, but as we said, we see further potential upside should the company continue to deliver on the membership-card transition, raise membership fees and continue to command improving traffic numbers.

Cisco Systems (CSCO:Nasdaq; $33.74; 3,000 shares; 3.69%; Sector: Technology): Shares surged toward their highs from 2007 this week after a strong earnings report that was highlighted by the company's continuing shift toward software and security - - 31% of total revenue is now attributed to recurring sources. A 12% increase to the quarterly dividend payout, resulting in $1.16 a share on an annualized basis, or roughly 3.5% yield, also helped the shares continue their rally. All in, while we view the quarter as relatively in line, we believe this was enough to keep investors satisfied with the recent rally in shares when considering the opportunities that lie ahead, not only within the business (the transformation has shown continued strength, driven by software and security) but also in terms of the macro (tax reform and repatriation). Investors continue to look for attractive areas as the broad bullish sentiment continues to ring true -- with CSCO trading at roughly 13x forward earnings, offering a steadily increasing 3.5% dividend yield, and promising continued progress on its transformation, the stock appears primed to continue to move higher in the long term. We raised our price target to $35 (from $33), reflecting a slight expansion of the current multiple on 2018 consensus earnings, although we see upside beyond those levels should the transformation remain on track and investors begin to treat the stock like the software company that Cisco is becoming. We believe the company's consistent cash flow generation, commitment to shareholder returns, shrewdness in strategic M&A and relatively cheap valuation all offer support and reasons for the stock to move higher as we await the transformation to continue to progress and for any benefits from "Trumponomics" to take shape. We reiterate our Two rating for now simply due to the consistent rally since mid-December, as we expect there will be more attractive levels to buy, especially for the portfolio, which already has a large position.

Dow Chemical (DOW:NYSE; $61.26; 1,475 shares; 3.29%; Sector: Chemicals): Shares traded flat this week on little news. For the time being, the stock is poised to trade almost solely around news regarding the impending merger with DuPont (DD), especially since shares recently experienced a nice rally following the company's strong earnings report. Last week, the company did provide an encouraging update on the progress of the merger review process, but no material, additional news this week leaves investors in a holding pattern. We reiterate our $67 target (we see more upside once the deal overhang has passed) and view Dow positively with or without the DD merger.

Kraft Heinz (KHC:Nasdaq: $96.65; 800 shares; 2.82%; Sector: Consumer Staples): In a volatile week for KHC, shares were ultimately higher, despite a negative reaction to earnings, following an announcement that the company had pursued a merger with Unilever (UL). You can read our earnings reaction here and our follow-up analysis recommending members add to the name on the selloff here. So does a deal with Unilever actually make sense for Kraft Heinz? We believe there could be two schools of thought, which we will explain below. Either way, the simple fact that KHC appears committed to completing some sort of deal -- whether it ends up being with Unilever is no matter -- is being viewed as a positive. A deal with Unilever, on one hand, appears messy on the surface given that the merger would require a combination of food, beverage and home & personal care products, not to mention any concerns raised from both a cross-border transaction and also the dual Anglo-Dutch domicile of Unilever, involving several different and complicated takeover laws. In addition, any deal involving the sheer size of these two companies (UL sports a market capitalization of $139 billion and recorded $55.6 billion in sales in 2016) creates uncertainty regarding the integration, regardless of the potential. That being said, on the other side of the coin, Unilever's success with different consumer segments (mainly with the addition of its innovative consumer packaged-goods business) would complement KHC's current food & beverage focus. In addition, Kraft Heinz derives the majority of its sales in the United States, whereas Unilever earns only about 15% of its revenue in the U.S. Unilever's attractive emerging-markets business (more than 50% of the company) would add a new lever to Kraft's long-term growth plans. The expansion potential for both companies appears large given that there is not a significant amount of geographic overlap in their end-markets. Regardless, we are confident that KHC and its sponsors would be diligent and persistent in removing costs and capturing significant synergies from a deal of this size, as they have with the Kraft Heinz merger. All in, while we cannot speculate as to what will ultimately occur, the ball is now officially rolling, and where there is smoke, there is usually fire. We have held onto KHC shares in part due to the potential for a deal, which seems more likely now than not. There are sure to be rumors galore over the next month, likely creating some volatility in the name. We raised our target to $95 following news of the potential takeover.

Panera Bread (PNRA:Nasdaq; $231.42; 225 shares; 1.90%; Sector: Consumer Discretionary): Shares underperformed the market this week, pulling back slightly after last week's strong rally. We trimmed the position on Friday as we wanted to take advantage of the opportunity to book profits (16% above our cost basis) following the recent rally, which was sparked by the company's impressive earnings report and encouraging conference call last week. Recall that we recommended members trim their positions on the rally, although we were restricted. While we continue to believe in the long-term delivery opportunity and the ongoing benefits of Panera 2.0, we find it prudent to protect profits at these levels. We would be willing to add back to the position on any material pullback once shares have cooled off. We reiterate our $252 target.

Schlumberger (SLB:NYSE; $80.65; 1,000 shares; 2.94%; Sector: Energy): Shares slipped this week as investors continue to stay away from energy stocks and oil prices remained in their recent range. We are waiting for a pullback into the high $70s to add to this name, but we want to remain disciplined given our low cost basis and roughly 3% weighting for SLB in the portfolio. We believe the long-term opportunity remains bright and we will take advantage of any prolonged weakness in energy stocks to bulk up our stake in this best-in-class oilfield services operator. We reiterate our $93 target.

Starbucks (SBUX:Nasdaq; $57.35; 1,750 shares; 3.66%; Sector: Consumer Discretionary): Shares traded higher this week, continuing their slow rebound since the company's disappointing earnings report. We continue to be holders of the position at these levels as the market awaits confirmation that management can reignite same-store-sales growth toward 5% in the Americas. We believe SBUX has a high-class problem of through-put, where the store has clutter in its cafes due to high demand for its products. While we maintain our Two rating for now as we wait for the company to demonstrate a turnaround, we believe CEO Howard Schultz and successor Kevin Johnson have earned the respect over the years to give them the opportunity to spark change. We reiterate our $65 long-term price target on SBUX.

T.J. Maxx (TJX:NYSE; $77.19; 1,400 shares; 3.94%; Sector: Consumer Discretionary): Shares underperformed the market this week as the stock cooled off a bit after a recent, albeit short-lived, rebound in the retail sector. While the broader retail sales report this week was stronger than expected, the results at bricks-and-mortars remained weak and sales continued to decline, perhaps adding to the pressure on shares. We trimmed our position earlier in the week in order to de- risk the portfolio from the retail sector as our TJX position was well over 4% of the portfolio. The company is set to report earnings next week, when we will get a better idea of how TJX has fared in this volatile retail backdrop. Importantly, next week truly kicks off the earnings season for all retailers, and we know from experience in the past that disappointing results from one of the major department stores can send shockwaves throughout the other stocks in the sector even if there is no correlation. We will be interested specifically in TJX management's commentary and how their position as a buyer of department-store excess inventory has helped them in the current environment. We maintain our Two rating for now given the backdrop and we reiterate our $85 target.

Walgreens Boots Alliance (WBA:Nasdaq; $85.86; 900 shares; 2.82%; Sector: Health Care): Shares traded higher this week following a report from the New York Post headlined "Walgreens-Rite Aid deal may finally be a go," with "may" being the key word, in our opinion. We took the opportunity to trim our position on the news. As we have been vocal about throughout the ongoing review process of this pending merger, the NY Post has proven to be unreliable and incorrect in terms of the timing of upcoming decisions reported in its various articles covering the deal. Our view on Walgreens remains the same -- we are positive on the name with or without the RAD deal. We are trimming the name as we believe shares may be getting too hot in the short term on a report that may or may not be reliable. We are only trimming slightly to protect this gain. We would again be buyers on the name if shares dropped back near $80 if the merger review continues to drag along. We maintain our $90 target.

Wells Fargo (WFC:NYSE; $58.09; 1,900 shares; 4.02%; Sector: Financials): Shares traded higher this week, benefiting from a rally in the financials to begin the week. We remain holders at these levels as we await the macro backdrop to improve on regulatory changes and impending rate hikes throughout the year. Wells is a bet on the economy, which we believe is poised to improve. We reiterate our $60 target.


Jim Cramer, Portfolio Manager & the AAP Team
Action Alerts PLUS


Selling Some Panera on Strength
Stocks in Focus: PNRA

We would be willing to add back to the position on any material pullback once shares have cooled off.

02/17/17 - 12:14 PM EST
Kraft Heinz Rises on Unilever Deal Talk
Stocks in Focus: KHC, UL

We have held onto KHC shares in part due to the potential for a deal, which seems even more likely now.

02/17/17 - 10:10 AM EST
Kraft Heinz Declines: Not to Worry
Stocks in Focus: KHC

Company's investment in its business is a positive while awaiting a deal.

02/16/17 - 12:41 PM EST
Weekly Roundup

Markets keep surging amid strong earnings and upbeat Fed commentary. In the portfolio, we add to 3 positions and trim 4.

02/17/17 - 05:05 PM EST


Chart of I:DJI
DOW 20,624.05 +4.28 0.02%
S&P 500 2,351.16 +3.94 0.17%
NASDAQ 5,838.5780 +23.6780 0.41%

Action Alerts PLUS Holdings

Holdings 1

Stocks we would buy right now

Symbol % Portfolio
AAPL 0.040668582069968866 Consumer Durables
ADBE 0.03279803929390927 Computer Software & Services
AEP 0.023427562453775922 Utilities
AGN 0.049713682188703964 Drugs
CMCSA 0.027524005678028426 Media
DHR 0.018428513095366087 Industrial
FB 0.04879554538219777 Internet
GE 0.026080384004753716 Industrial
GOOGL 0.04640290827151148 Internet
HPE 0.017832866132339184 Telecomm
MMP 0.008788898839116592 Energy
NWL 0.032382730843921494 Consumer Durables
NXPI 0.024322860036239673 Electronics
PEP 0.03952099328304268 Food & Beverage
SNA 0.01576545957201728 Industrial
XEC 0.024121874864666177 Energy
Holdings 2

Stocks we would buy on a pullback

Symbol % Portfolio
APA 0.03950564532448615 Energy
ARNC 0.03825478670212966 Industrial
C 0.0384786110977456 Banking
COST 0.016066023760415823 Retail
CSCO 0.03698858012121664 Computer Hardware
DOW 0.0330194884102248 Chemicals
KHC 0.02825486084738659 Food & Beverage
PNRA 0.01902763162044744 Leisure
SBUX 0.03667522596735433 Leisure
SLB 0.02947173470436793 Energy
TJX 0.039490297365929634 Retail
WBA 0.028238051178491354 Retail
WFC 0.040332607948614915 Banking