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) -- TheStreet.com's stock-rating model upgraded automaker
Tesla, FedEx, BlackBerry, Applovin, McAfee - 5 Things You Must Know
Investors weigh continued Fed support ahead of a batch of economic data; FedEx, Nike and BlackBerry report earnings; Tesla extends gains after stock has its best day in more than two months.
: Ford swung to a second-quarter profit of $2.3 billion, or 69 cents, from a loss of $8.7 billion, or $3.89, a year earlier as revenue dropped 34% to $27 billion. Its gross margin rose from 6% to 18% and its operating margin climbed into positive territory. While Ford has $33 billion of cash, it has $133 billion of debt and $1.7 billion of quarterly interest expenses.
: Ford shares have tripled this year as investors reward the company for avoiding bankruptcy. The stock's high 2.5 beta means it's very volatile.
The model upgraded oil and gas producer
: Concho lost $33 million, or 39 cents a share, in the second quarter after losing $14 million, or 19 cents, in the year-earlier period. Revenue declined 7% to $127 million. Its operating margin plummeted from 61% to 23% and its net margin fell deeper into negative territory. Just $3 million of cash reserves and a quick ratio of 0.6 demonstrate weak liquidity. However, a debt-to-equity ratio of 0.5 indicates restrained leverage.
: Concho has advanced 49% this year, outpacing major U.S. indices. The stock trades at a cheap price-to-earnings ratio of 13, but the company doesn't pay dividends.
The model upgraded investment manager
: Second-quarter net income surged 46% to $314 million, but earnings per share fell 1% to 95 cents because of its higher share count. Revenue dropped 21% to $1.1 billion. Its operating margin rose from 44% to 49% and its net margin increased from 15% to 28%. A debt-to-equity ratio of 2 suggests excessive leverage, but Northern Trust has $23 billion of cash reserves compared with $12 billion of debt, indicating outstanding liquidity.
: Northern Trust has increased 15% this year, more than the
Dow Jones Industrial Average
S&P 500 Index
. The stock trades at an expensive price-to-earnings ratio of 26 and offers a lackluster 1.9% dividend yield.
We initiated coverage of
GT Solar International
, which makes equipment used to produce solar cells, with a "hold" rating.
: Fiscal first-quarter net income grew 51% to $7.8 million and earnings per share increased 66% to 5 cents. Revenue climbed 26% to $72 million. Its operating margin rose from 14% to 22% and its net margin expanded from 9% to 11%. GT Solar has less-than-ideal liquidity, evident in its quick ratio of 0.4. But the company has no debt.
: GT Solar has advanced 76% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 8, a vast discount to the market and peers, but the company doesn't pay dividends.
The model upgraded medical-equipment maker
: Second-quarter net income fell 5% to $291 million, but earnings per share were unchanged at 73 cents, helped by a lower share count. Revenue dropped 5% to $1.6 billion. Its operating margin increased from 23% to 24% and its net margin was 18%. Stryker has an ideal financial position with minimal debt and ample liquidity, demonstrated by a quick ratio of 3.3.
: Stryker has advanced 4% this year, less than major U.S. indices. The stock trades at an attractive price-to-earnings ratio of 15, but offers a weak 1% dividend yield.
-- Reported by Jake Lynch in Boston
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