stock market basics

In this article, I want to explain why fundamentals in the machinery industry are about to gain steam. I do this based on ‘my’ set of leading indicators and their effects on coincident indicators. If you are not familiar with these terms or just want to know more about it, feel free to read my article about this very topic.

Article: Establish A Solid Macro View Using The Top-Down Method

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Source: Fares Bros

This article is more or less about all stocks in the machinery industry since these fundamentals affect all companies who have exposure in this industry. The most important can be seen below:

stock market basics: Huntington Bancshares Incorporated(HBAN)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Who is at the lower-end of the range for 2016 payout ratios? We expect Zions Bancorporation, Huntington Bancshares (HBAN), andBank of America to seek the least amount of capital return in 2016 (ranging between 50-60% of estimated earnings).

stock market basics: Oshkosh Corporation(OSK)

Advisors’ Opinion:

  • [By Shanthi Rexaline]

    The six companies that met the criterion are:

    Oshkosh Corp (NYSE: OSK). Phillips 66 (NYSE: PSX). SpartanNash Co (NASDAQ: SPTN). Suncor Energy Inc. (USA) (NYSE: SU). Washington Federal Inc. (NASDAQ: WAFD). Barnes & Noble, Inc. (NYSE: BKS).

    Oshkosh is a manufacturer of specialty vehicles and vehicle bodies and is based in Wisconsin. The company operates under four business segments, namely access equipment, defense, fire and emergency, and commercial.

  • [By Rich Smith]

      I first named Oshkosh my top stock pick back in September, when the stock cost $42 and change. Since then, the stock has gone down, and sells for $3 less. So am I supposed to dislike Oshkosh stock now?

    No. To the contrary, I like it even more. (About $3 more, in fact).

    You see, even in the process of picking Oshkosh back then, I warned investors: "I don’t know whether Oshkosh will be the best-performing stock in the world in the month of September, but I’ve got a strong hunch about the next six months." And that hunch remains — because the facts have not changed.

    This past summer, Oshkosh was named the winner of the Pentagon’s contract to build a next-gen "Humvee" — an armored Joint Light Tactical Vehicle that will serve the U.S. military for decades to come. Oshkosh won an initial award to produce 17,000 vehicles for $6.7 billion. Ultimately, though, this is a contract that could swell to $30 billion or more for production, maintenance, and upgrade of approximately 55,000 JLTVs across all military branches.

    So why hasn’t Oshkosh stock moved in response to the contract? Mainly because rival bidderLockheed Martin threw a monkey wrench into the contracts process, first protesting the JLTV award to Oshkosh, and then, when that protest was rejected, filing suit in court to try to win the contract away from its rival.

    Personally, I think Lockheed Martin will lose that suit as well. After all, Lockheed’s forte is in fighter jets, while Oshkosh is the military’s premier supplier of trucks like JLTV, as well as the Army’s M-ATV vehicle (a small, all-terrain MRAP). Perhaps recognizing this, AM General, the other company that bid against Oshkosh on JLTV and lost, declined to protest the award. Lockheed took the other road, but I expect it will be a dead end for Lockheed as well.


    Oshkosh (OSK) was downgraded to neutral from buy at Bank of America/Merrill Lynch. $62 price target. The valuation is less attractive, as the stock is trading at 21x expected 2017 earnings, analysts said. 

stock market basics: Genuine Parts Company(GPC)

Advisors’ Opinion:


    Aflac (AFL) — yielding 2.5%
    Archer-Daniels Midland (ADM) — yielding 2.7%
    Chevron (CVX) — yielding 3.8%
    ExxonMobil (XOM) — yielding 3.6%
    Genuine Parts (GPC) — yielding 2.7%
    Johnson & Johnson (JNJ) — yielding 2.8%
    T. Rowe Price (TROW) — yielding 3.2%

  • [By ]

    After delivering 9% (including dividends) since my recommendation, shares of Genuine Parts Co. (NYSE: GPC) now trade at an attractive 15% discount to their 52-week high. Despite the rise and sudden drop, my original investment thesis is still intact.

  • [By Lee Samaha]

    Genuine Parts Company (NYSE:GPC), owner of NAPA Auto Parts, became the first of the major auto parts companies to report earnings and sales for its first-quarter period ending on March 21.

stock market basics: City Holding Company(CHCO)

Advisors’ Opinion:

  • [By Monica Gerson]

    City Holding Company (NASDAQ: CHCO) is expected to report its quarterly earnings at $0.74 per share on revenue of $42.04 million.

    Compass Minerals International, Inc. (NYSE: CMP) is projected to post its quarterly earnings at $1.33 per share on revenue of $347.03 million.

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