This recent
earnings weakness has caused the stock to come off of previous highs into fair valuation territory.
Not exact matches
Precision shares, though, are off nearly 30 % from their all - time high, as the company's
earnings have been hit by
weakness in the oil and gas sector, where the majority of the company's non-aerospace sales come from.
Weakness in the company's revenue seems to
have hurt the bottom line, decreasing
earnings per share.
Global investors
have regained some of their risk appetite and invested more of their cash in spite of the continuing oil price
weakness and concerns over corporate
earnings and global growth.
This one man may be to blame for the recent
weakness in stocks, says analyst Bearish comments from Caterpillar's CFO were applied to the whole market, Bell saysThe U.S. stock market
has struggled recently, with the Dow on track for its fifth straight daily decline despite one of the best
earnings seasons on record.
Moreover, much of the
weakness in energy prices
has already been reflected in downward revisions to Canadian
earnings, implying less pressure on forward - looking multiples.
As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which
would require the maintenance or expansion of already high price / peak
earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market
has now outlived the median and average bull, yet at higher valuations than most bulls
have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which
would become more of a factor if we observe a substantial widening of credit spreads and
weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar
weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic
weakness.
Wymer: The market's strong rally following the November 2016 general election
has continued, as global
earnings expectations improved during 2017 — a sharp contrast to the
weakness in recent years — and
have accelerated recently, spurred by reactions to the long - term impacts of the corporate tax cuts.
Though a strong dollar and
weakness in China
have had a negative impact on U.S. corporate
earnings, neither
has had a material impact on overall U.S. growth.
While we believe payrolls and average hourly
earnings are both likely to miss consensus estimates, we think the employment report may be somewhat less important than usual for the monetary policy outlook, because 1) recent data
have been firm so we
have some room for a miss, 2) the August seasonal issue is now well known so even a somewhat larger miss may not significantly alter the staff view, and 3) there are several months between now and December to make up for any
weakness in tomorrow's report.
(I suspect the post-Brexit
weakness of the pound might
have boosted foreign
earnings enough to plug the gap for now).
Trending Story: Demand for wine investments in California
has never been higher says M&A specialists Demand for wine properties and investments in the Californian wine industry
have never been higher, according to International Wine Associates, merger and acquisition specialists in the American wine industry... Today's News Owens - Illinois reports flat
earnings in 2013 ngoing economic
weakness -LSB-...]
Over the past few years RIM
has been building up its team, acquiring the players it needs to fix their historic
weaknesses and «future proof» the company (a term RIM's Co-CEO Jim Balsillie used on their last
Earnings Call).
The
earnings front
has not been much better for growth stocks either and recent
weakness in housing is sounding the alarm for investors.
Generally speaking, we will sell a stock for one of four reasons: (1) the safety of the dividend payment
has come into question due to unexpected fundamental
weakness; (2) the company's long term
earnings power appears to
have become impaired as a result of new competition, secular changes, etc; (3) the stock's valuation reaches seemingly excessive levels; or (4) we
have a new stock idea with a more attractive valuation and fundamental outlook.
Regardless, economic
weakness would not impair the company's long - term
earnings power.
However, I was long this stock and aggressively added to it in 2011 (not shown on the graph) because I felt that the market
had overreacted to temporary
earnings weakness.
On the other hand, in spite of the cyclicality of their
earnings, most of the companies on the conservative list
have consistent long - term records of paying a dividend without cutting it during economic
weakness.
In general, corporate credit remains solid and corporate
earnings remain strong.7 The bull market is old, but many analysts believe it still
has legs.8 The greatest danger of the high - yield sell - off may be psychological — the potential for investors to overreact to a small sign of market
weakness.
The recent fund sell - off may be a natural response to high prices — taking profits and looking for other opportunities.4 However, the sell - off was triggered by
weakness in the telecom industry, where some companies
have struggled with failed mergers and poor
earnings.
Weakness here will
have lightening impact on
earnings.
01:26 - Microsoft Surface Laptop event 36:16 - The Google Docs spam attacks played off Google's most fundamental
weakness 47:33 - Samsung DeX review: the closest thing we
have to using our phones as PCs 1:00:04 - Paul's weekly segment «Four Fours» (previously known as 4444) 1:06:46 - Apple's
earnings show modest growth, but iPhone sales are flat