Procter & Gamble (PG) closed the most recent trading day at $117.73, moving -0.02% from the previous trading session. Stock Market Highlights: Indian market ended higher for fourth consecutive trading session on Tuesday due to the gains in Bajaj Finance and L&T. Broader indices remained in-line with the Indian market, with Nifty Smallcap100 index ending 1.56 percent higher and Nifty Midcap100 index closing 1.47 percent higher. All sectors ended in the green, with PSU Bank index as the best-performing sector, up 3.65 percent. Among top losers, there were only 4 stocks in the red i.e. Reliance Industries, Bharti Airtel, Vedanta and Maruti Suzuki.Get latest Economy online at cnbctv18.com Stock futures opened slightly lower Tuesday evening after another tech-led rally during the regular session. Here come miserable earnings reports – and that’s great news
Procter & Gamble (PG) closed at $117.73 in the latest trading session, marking a -0.02% move from the prior day. This change lagged the S&P 500’s daily gain of 0.43%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq added 0.75%.
Investors will be hoping for strength from PG as it approaches its next earnings release. The company is expected to report EPS of $1, down 9.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.77 billion, down 1.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $70.02 billion, which would represent changes of +9.73% and +3.45%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. PG currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, PG is holding a Forward P/E ratio of 23.76. Its industry sports an average Forward P/E of 23.8, so we one might conclude that PG is trading at a discount comparatively.
We can also see that PG currently has a PEG ratio of 3.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. PG’s industry had an average PEG ratio of 4 as of yesterday’s close.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Author: Zacks Equity Research
Stock Market Highlights: Sensex, Nifty end higher for fourth day, up over 1.5%; Bajaj Finance, L&T top gainers
Last Update 18 hours ago
Mousumi Paul | Published: June 23, 2020 03:44 PM IST
Here are the key takeaways from today’s trading session:
1. Market gains for 4th straight session to close at nearly 4-month high
2. Sensex, Nifty and Midcap Index gains over 1 percent each, Nifty Bank up 2.6 percent
3. 46 Nifty stocks close higher; Bajaj Finance, L&T, IndusInd Bank top gainers
4. Nifty gains 160 points to 10,471, Sensex 519 points to 35,430
5. Midcap index advances 225 points to 15,022 and Nifty Bank 557 points to 22,265
6. All sectoral indices close in the green; BSE Power, Capital Goods up over 4 percent
7. Besides Reliance Industries, most Nifty heavyweight close Tuesday trade higher
8. IT stocks gain despite H-1B visa suspension till December 31; Nifty IT up 1.5 percent
9. Karur Vysya Bank, Bandhan Bank, Union Bank amongst top Nifty gainers
10. Page Industries slips 1 percent after reporting Q4 earnings below estimates
Closing Bell: Indian market end 1.5% higher, for fourth consecutive session; Bajaj Finance, L&T top contributors
The Indian equity benchmark indices ended higher for fourth consecutive trading session on Tuesday due to the gains in Bajaj Finance and L&T.
At close, the Sensex ended 519 points or 1.49 percent higher to 35,430 while the Nifty50 ended at 10,471, up 160 points or 1.55 percent higher. Broader indices remained in-line with the Indian market, with Nifty Smallcap100 index ending 1.56 percent higher while Nifty Midcap100 index surged 1.47 percent.
All sectors ended in the green, with PSU Bank index as the best-performing sector, up 3.65 percent.
Bajaj Finance, L&T, IndusInd Bank, NTPC and Hindalco were the Nifty50 top gainers. Among top losers, there were only 4 stocks in the red i.e. Reliance Industries, Bharti Airtel, Vedanta and Maruti Suzuki.
Stock Update: Page Industries’ shares traded 1. 33 percent lower to Rs 19,134 apiece on the NSE after its standalone Q4 net profit slipped 58.7 percent year-on-year (YoY) to Rs 31 crore while its revenue fell 11 percent YoY to Rs 541.3 crore. Operating profit also declined 52.5 percent to Rs 58.1 crore while margin came down to 10.7 percent from 19.7 percent.
Rupee Update: The Indian currency ended higher for the second straight day on Tuesday due to the positive sentiment in the equity market and weakness in US dollar. The Indian rupee ended at 75.64 against the US dollar as compared to Monday’s close of 76.02.
Setback for Bank of Baroda as SC allows for regulatory action by @RBI for failure to honour the bank guarantee. SC sets aside BoB’s plea seeking quashing of Calcutta HC order directing for regulatory action for failure to honor bank guarantee pic.twitter.com/cUb6sqIs2d
This NBFC share has gained over 65% from its 52-week low in less than a month
Shares of Bajaj Finance gained as much as over 3 percent in trade on Tuesday and was among the top Nifty50 gainers. The stock has been gaining since the last one month and has rallied over 65 percent during the period. Bajaj Fin shares had hit its 52-week low of Rs 1,783.10 on May 27. Since then, the consumer finance stock has rallied more than 65 percent.
At 11:40 am, the stock quoted Rs 2890.45, up 1.71 percent on the BSE with a market cap of Rs 1,74,128.82 crore. Here’s more on the story
L&T’s shares rally over 6% over 3 large order wins
Larsen & Toubro’s shares surged as much as 6. 39 percent to Rs 965 apiece on the NSE after the company won a series of large orders of up to Rs 5,000 crore.
The order wins include EPC contracts in infrastructure and water treatment businesses. The company won an EPC contract to construct packages 11 out of 22 of Delhi-Vadodara Expressway, and another one from PwD in West Bengal. The EPC for the water treatment project was received from Uttar Pradesh.
At 1:38 PM, the shares traded 6.28 percent higher to Rs 964.40.
European stocks open higher, brushing off concerns over U.S.-China trade deal and coronavirus
European stocks opened higher Tuesday despite some concerns over the state of the U.S.-China trade deal, and a surge of coronavirus cases in the U.S. and elsewhere.
The pan-European Stoxx 600 added 0.6 percent in early trade, with financial services, industrials and tech stocks each climbing more than 1 percent as all sectors and major bourses entered positive territory.
European markets look set to follow their global counterparts Tuesday. The boost to stocks comes after White House trade advisor Peter Navarro clarified that the U.S.-China trade deal is not over, following an interview with Fox News in which he appeared to suggest otherwise, prompting U.S. stock futures to plunge.
SEBI offers relief to stressed companies, eases preferential allotment and open offer exemption rules
The market regulator has eased preferential allotment rules for fund-raising by stressed companies, and also granted eligible companies exemption from making an open offer.
In a late-night notification, the Securities and Exchange Board of India (SEBI) said that listed companies that meet the eligibility criteria will be allowed relaxations in raising funds via the preferential allotment route, under the newly inserted Regulation 164.
Curbs on H-1B visa will not disrupt Indian IT sector, says Tech Mahindra boss
The Trump administration’s move to restrict work visas will not lead to any disruption for the Indian IT services sector, Tech Mahindra MD and CEO CP Gurnani said in an interview to CNBC-TV18.
Gurnani said the industry had prepared itself for unrealistic immigration challenges, adding that it had become ‘Atmanirbhar’ by not overly depending on H-1B visas .
“We were locally hiring and training a lot more engineers. So India’s own applications for H-1B visas has reduced. The impact on India or on Indian companies will be less in the short-term, it is not going to lead to any disruption,” Gurnani said.
Gurnani said that the US needed Indian IT talent more than the other way round.
“I think the impact on Tech Mahindra is minimal. I think there will be more impact on individuals than on the companies,” said Gurnani.’
At 12:35 pm, the shares traded 1.21 percent to Rs 557.90 per share on the NSE.
Glenmark shares down 7%; market gets realistic about Fabiflu impact on earnings
Glenmark Pharma shares were down over 7 percent during Tuesday’s trading session. The stock had surged as much as 35 percent on Monday after the company was granted fast-track regulatory approval to launch favipiravir in India for treatment of COVID-19 patients with mild to moderate symptoms.
Glenmark’s brand of favipiravir is called Fabiflu.
The stock fell as much as 7.30 percent to Rs 482 per share on the NSE. At 12:15 pm, the shares gave up marginal losses to trade 6 percent lower at Rs 488.50.
Analysts were surprised at Monday’s rally and said that the potential earnings from the sale of Fabiflu did not warrant such a big gain in the stock price.
Brokerage house Axis Capital said that Favipiravir isn’t cleared for use of any kind in the US as the USFDA has in the past rejected it on worries about side effects. Many other pharma companies would be launching similar drug in next 1-2 months (Strides, Cadila, etc); so it is not an exclusive drug for the company, Axis Capital said.
According to brokerages such as IDFC Securities and Bank of America-Merrill Lynch, Fabiflu could net Glenmark anywhere between Rs 25 to 90 crore in revenues.
Colgate’s shares surge over 3% on Nomura’s report
Colgate’s share price gained as much as 3.48 percent to Rs 1,425 per share on the NSE after Nomura maintained its bullish stance on the stock, saying it is one of the most stable companies right now.
It said, “Oral hygiene consciousness will rise going forward, which will drive consumer habit changes. Expect earnings to grow in FY21/22/23 by 8 percent/15 percent/15 percent respectively.”
The brokerage expects a potential upside of 18 percent on the stock, with target at Rs 1,620.
IT stocks trade under pressure as US temporarily suspends H1-B visas
IT shares declined on Tuesday over the proclamation issued by US President Donald Trump to temporarily suspend foreign work visas, including the H-1B. Shares of top Indian software exporting firms such as Wipro, TCS, Infosys, HCL Technologies declined. The Nifty IT index was the only sectoral index trading in the red. The index fell more than half a percent as against half percent gain in the benchmark Nifty50.
US President Donald Trump issued a proclamation to suspend issuing of H-1B visas, L visas, H-2B seasonal worker visas and J visas for the rest of the year.
The proclamation comes into effect on June 24 and will expire on December 31. Work visas such as H1B and L1 are regularly used by Indian and multinational IT companies to hire Indian employees to work on US contracts in that country.
US asks to Air India to obtain prior approval for all repatriation flights: The United States has asked Air India to obtain prior approval for all repatriation flights. The US Department of Transportation has noted India impaired operating rights of US airlines. The order will come into effect after 30 days. US noted the competitive imbalance with only Air India operating on India-US route.
‘A bull market usually sees higher volumes in trading,’ says Ashish Chauhan, MD & CEO of BSE. Adds, the decision to keep market functioning through crisis, was one of the best decisions. Today, we are seeing the excitement & many are feeling the thrill of trading pic.twitter.com/pb0K8VRgY1
Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking
Today, Indian Rupee appreciated by 0.25%. In last the 5 days, it appreciated almost 0.75% from a level of 76.36 to 75.80 level today. Weakness in Dollar, strength in the equity market are some factors that are making Indian Rupee get more firm. We are expecting that Indian Rupee may appreciate further to test 75.50 levels.
L&T Infotech to launch accelerated migration programme for SAP-Based Enterprises with Amazon Web Services
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
On the daily chart, the index has been trading within a ‘Rising Wedge’ formation and the higher end of the pattern is in the range of 10,500-10,600. Looking at the overall momentum, we are of the opinion that the index would move higher in the near term to test the above mentioned range. Hence, momentum traders are advised to continue to trade with a positive bias and look for stock specific opportunities on any intraday dips. The intraday supports for the index are placed around 10,260 and 10,210 whereas resistances are seen around 10,440 and 10,500.
Trending Stock: Glenmark’s shares fell as much as 7 percent to Rs 483.40 per share on the NSE as brokerages feel that Favipiravir is overhyped. Axis Capital in its report said, “27 percent spike in stock price seems unjustified. We remain positive on the drug but don’t expect any meaningful upmove.” It further said that many other pharma companies would be launching similar drug in next 1-2 months (Strides, Cadila, etc); so Favipiravir not exclusive. Favipiravir isn’t cleared for any use in the US as the USFDA has in the past rejected it on worries about side effects, the report added.
Morgan Stanley on Indian IT companies: Indian IT companies are unlikely to feel much of an impact on H-1B visa move. No real impact due to localisation efforts over past few years. To the extent possible, companies will try to move work offshore.
Sanjay Dutt, Director of Quantum Securities #OnCNBCTV18 says US has pumped in liquidity worth $3 tn since March. The stimulus is the most aggressive one the globe has seen in recent history pic.twitter.com/JQ5D3cGxpv
Rupee Update: The Indian currency opened stronger on Tuesday in-line with the positive sentiment in equity markets. The rupee opened at 75.86 against the US dollar as compared to Monday’s close of 76.02. This is the second straight session where the Indian rupee opened higher.
Technical Experts View: 10,350 could pose a short term resistance or pause for the markets – this could be for profit booking too. The trend continues to remain positive until we don’t break 10,200 on a closing basis. Until then we could use a “buy on dips” approach, says Manish Hathiramani, Index Trader and Technical Analyst from Deen Dayal Investments.
Important Update: The market regulator SEBI has eased preferential allotment rules for listed companies having stressed assets. The pricing is not to be less than 2- week average of weekly high & low of volume weighted average price. The allotment cannot be made to a person part of the promoter group and eligible preferential allotment that trigger open offer to be exempt from making open offer, reported CNBC-TV18.
Stock market news live updates: Stock futures open little changed, pausing after rally
Stock futures traded near unchanged Tuesday evening after a rally during the regular session sent a number of big tech names and the Nasdaq Composite to record closing highs.
Market participants continued to eye increases in coronavirus cases in some regions in the country, with each of California, Texas and Arizona posting their largest daily case additions so far, as of Tuesday’s counts. Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said during an appearance before the House Energy and Commerce Committee Tuesday that the “next couple of weeks are going to be critical” in containing the virus in states in the South and West where surges have appeared.
Still, state and local officials have so far largely tabled the idea of shutting down their state economies again, with Texas Gov. Greg Abott saying that a new lockdown would be the last option.
Despite the uncertainty around the virus stocks still closed higher at the end of the regular session Tuesday, helped in part by optimism over a coronavirus vaccine and some improving economic data. And investors have continued to bet on increased stimulus from policymakers to boost the economy in the face of the pandemic, with the Washington Post reporting Tuesday that President Donald Trump supported another round of direct checks to taxpayers.
The Nasdaq Composite outperformed the other major indices, hitting another fresh record closing level. Facebook, Amazon, Apple and Microsoft posted closing record highs, as did other tech names including Zoom Video Communications, PayPal, eBay and Adobe. The Information Technology and Communication Services sectors – each of which contain major tech names – remained one of the few S&P 500 sectors in the green for the year to date.
“Tech has had a relatively easier road over the past few months as stay-at-home stocks become the latest investing trend,” Mike Loewengart, managing director of investment strategy for E-Trade Financial Corporate, said in an email Tuesday. “With in-person office environments mostly touch and go, we could be seeing some excitement around new hardware and gadgets to make working from home a bit easier—potentially putting some momentum in this sector.”
Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:05 p.m. ET:
S&P 500 futures (ES=F): 3,116.25, down 2.25 points or 0.07%
Dow futures (YM=F): 26,001.00, down 19 points, or 0.07%
Nasdaq futures (NQ=F): 10,195.75, down 0.25 points, or 0.00%
NEW YORK, NEW YORK – MAY 26: The New York Stock Exchange (NYSE) stands in lower Manhattan on the first day that traders are allowed back onto the historic floor of the exchange on May 26, 2020 in New York City. While only a small number of traders will be returning at this time, those that do will have to take temperature checks and wear face masks at all times while on the floor. The Dow rose over 600 points in morning trading as investors see economic activity in America picking up (Photo by Spencer Platt/Getty Images)
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Author: Emily McCormickReporter
Stock Market Outlook: 3 Volatile Weeks, Then Pure Excitement
A NYSE trader exhibits excitement. Photo by Johannes EISELE / AFP)
The stock market is about to evolve – from guesstimate volatility to fundamental trend building. But, first, it needs to close out this quarter’s final trading days and pass through the third quarter’s startup time until it reaches…
Will his comments be positive, negative or a combination? Who knows? However, what we do know is that the information will be valuable and will be based on facts, insight and wisdom. And that means investor excitement because actual business fundamentals and reasoning are reentering the stock market discussion.
Gone will be the dependence on invented “breaking news” and simplistic “analyses” based on linking trader-driven stock market moves to any coincidental tidbits lying around.
Oh, it’ll still be with us. However, its overwhelming uncertainties in early April have greatly diminished. Today, most government, institutional and business leaders know what needs to be done, both to function effectively and to contain, if not reduce, the risk of contagion.
No. As more was learned about the disease, the worst of the scary visions faded away and the stock market was able to rebound. Adding to that improvement was the reversal of the two serious issues that immediately hit the stock market after the coronavirus selloff: The oil price plummet, followed by the deleveraging (margin call) financial disruption. Both of those latter concerns and associated selloffs have now corrected.
So, look at where that leaves the stock market – within the original coronavirus selloff and stabilization range. To regain its February high, the Dow Jones Industrial Average needs to rise 13.7% — meaning it is no longer in the below -20% recession area, but still remains below the -10% correction level. That position does not suggest over-optimism. Instead, it provides both an upside barrier test and a potential level for foundation building.
2020 DJIA coronavirus selloff and recovery through June 22
Yes, on paper, but not if all factors involved are taken into account.
First, the coronavirus hit on company results is expected to be temporary. Therefore, stock prices will not fully reflect the drops in sales and earnings forecasts for this quarter and next. That necessarily means that the current valuation measures look overly high – not because investors are over-optimistic, but because they know company results can improve markedly as conditions return to a version of normal.
Second, this stock market has had a sizeable split between outperforming growth companies and underperforming value ones.
2018-2020 Stock indices comparison, showing wide spread of results
That performance difference, in turn, has shifted the allocation of the general stock market indexes away from typically lower-priced value and towards higher-priced growth. This effect is visible in both the market capitalization-weighted S&P 500 and the price-weighted DJIA.
Third, there is a potentially exciting contrarian confirmation of good times and growth ahead: Miserable-looking earnings. If companies see the past three months as an economy-business trough, they will likely search for ways to clean house (via write-offs, write-downs and increased expense/loss reserves, for example). The goal is to create a leaner foundation upon which future profitability and growth measures will be based.
So, don’t fret if companies’ report low earnings (or losses) that may be below analysts’ estimates, making valuations look even higher. It is likely that the cleaning house strategy is at work, and that is good news.
Stock market excitement is coming, beginning on the morning of July 14 with JPMorgan Chase’s second quarter earnings report and conference call. Therefore, the best strategy for now looks to be holding on through any volatility as this quarter closes out and the next one begins.
Author: John S. Tobey