Deere Ratings Cut on Weak Industry Data
are down nearly 3% following a JPMorgan Chase downgrade of the stock to neutral from buy.
The analyst says the cut is related to bearish data released from the USDA for agricultural machinery. Rising corn inventories and lower demand are expected to hurt already weak equipment sales.
Management recently projected earnings would plunge more than 25% to $275 million compared with $369.1 million last year. This was way below the consensus estimates for first-quarter earnings of $363.1 million.
We had removed shares of Deere from our "Recommended" list on Aug. 6, when shares were trading at $66.67. The company has a dividend yield of 2.69%, based on last night's closing stock price of $41.56. The company has technical support near the $30 area. If the stock can stabilize and move higher, we see overhead resistance in the $45 to $47 area, and then $50 again. We would remain on the sidelines for now.
Deere is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
Lexmark Cuts EPS Guidance by 50% for Next Quarter
shares are down nearly 10% in early trading, after it announced it has lowered fourth-quarter guidance and also plans to cut 375 jobs.
The company said it expects revenue for the fourth quarter to decline about 17% from year-ago levels. The company now expects EPS of 19 cents to 24 cents, down from October guidance of 40 cents to 50 cents.
The company is coming off a sub-par 2008, which saw shares down 20%. The company has technical support in the $22 to $24 price area. If those levels fail to hold, the $16 area could come into play next. If the shares can firm up, we would see overhead resistance come in at the $30 to $31 levels. We do not currently rate this non-dividend paying stock, but we do monitor the company closely.
Lexmark International does not currently pay a dividend.
Infosys Rallies on Third-Quarter Report
just announced third-quarter profit increased 6% to $332 million, or 58 cents per American depositary share, up from $312 million, or 55 cents per ADS, a year ago.
The company said its revenue rose 8% to $1.17 billion from $1.08 billion. The company reported it added 30 new clients during the quarter. Some market watchers feel the company may be positioned well to benefit from competitor
Satyam Computer Services'
We have avoided shares of Infosys since our early June coverage began, when the stock was trading at $47.47. The company has a 1.55% dividend yield, based on last night's closing stock price of $25.88. The stock has technical support in the $18 to $21 area. We see overhead resistance coming in at the $30 to $32 price levels. We would remain on the sidelines for now.
Infosys Technologies is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.
UnitedHealth Rebound After Database Probe Settlement
shares have reversed earlier losses following a settlement with the New York State attorney general over concerns about the independence of the company's databases.
The company has agreed to transfer its Ingenix database to a non-profit entity, and the company will pay $50 million to fund the independent database.
The probe had looked into claims that UnitedHealth operated a "defective and manipulative" database that most major health insurers use to set reimbursement rates for out-of-network medical expenses.
We have avoided shares of UnitedHealth since our June coverage began and the shares were trading at $33.01. The company has a low dividend yield of 0.12%, based on Friday's closing stock price of $25.62. Shares of UnitedHealth have climbed 50% in the last seven weeks. We are monitoring the new administration's plans as far as health care is concerned and will be watching UnitedHealth as a gauge for the industry. We would still remain on the sidelines at this current time.
UnitedHealth is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.