Posted: Jan 28, 2010 13:06 PM by Ryan C. Fuhrmann

Drug distribution market leaders AmerisourceBergen (NYSE:ABC) and McKesson (NYSE:MCK) both reported financial results on Tuesday. We’ll look at both releases and evaluate the pairs’ current investment appeal.

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Posted: Jan 28, 2010 09:03 AM by Ryan C. Fuhrmann

After a two year dry spell, charge-card provider American Express (NYSE:AXP) finally reported a year-over-year increase in profits. The road to recovery will be continue to be bumpy, but a recent pullback has made the shares more reasonably valued based off current fundamentals.

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Wal-Mart (NYSE: WMT) and Target (NYSE: TGT) draw frequent comparisons as two of the most prominent big-box retailers. Wal-Mart’s low-cost focus has helped it outmuscle its archrival during the current economic downturn, but Target is showing signs of life as consumers begin to open their wallets and buy more discretionary items. Below is a comparison of their cash flows for the most recently completed fiscal year, highlighting the main items on the three key categories in the cash flow statements and how these stack up against other more stodgy industry players. (To learn about analyzing the cash flow statement, read The Essentials Of Cash Flow.)

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Diversified technology titan IBM (NYSE:IBM) reported fourth-quarter and full-year results on Wednesday after the market close that further proved that it is feeling few ill effects from an uneven global economy. In fact, sales and earnings are showing signs of life that indicate industry trends are improving. IBM will continue to be a bellwether for those trends, and is worthy of investment consideration, given the macro environment should soon also be in its favor.

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JPMorgan Chase (NYSE:JPM) recently reported fourth-quarter and full-year results that indicated 2009 marked a stunning and rapid reversal from the height of the credit crisis. A further investigation of the results demonstrate that there is still work to do in terms of returning fully to form in its traditional banking operations, but the share price multiple off normalized earnings is compelling. 

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Posted: Jan 25, 2010 06:24 AM by Ryan C. Fuhrmann

Organic and specialty food distributor United Natural Foods (Nasdaq:UNFI) opened the first quarter of its fiscal year with respectable sales and profit results. Increased consistency and scale could make the stock a healthy selection for investor portfolios.

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Microchip giant Intel (Nasdaq:INTC) reported fourth quarter and full year results earlier in the month, boasting that it had an outstanding quarter and entered 2010 in a very strong position. Indeed, earnings beat analyst expectations by a wide margin to indicate that Intel is on the next upswing in demand for its chips and other related computing products.
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Visa (NYSE:V) and Mastercard (NYSE:MA) usually get all the attention as preeminent electronic payment processors given their brand names and dominant global payment networks. Global Payments (NYSE:GPN) is a fraction of the size of its larger rivals, but is worth a look given its slightly more reasonable valuation and strong track record of sales and profit growth. (For more information about investing in credit card companies, read Investing In Credit Card Companies.) 

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Lighting fixture market leader Acuity Brands (NYSE:AYI) kicked off its fiscal year with a thud, as sales continued to struggle along with the industrial construction markets it serves. Its residential focus is less of a concern, given that it accounts for a small proportion of sales, but the entire industry continues to face tepid near-term trends. The longer-term outlook is much more compelling, which means keeping Acuity close on stock watch lists. (Some companies are severely hurt in a recession, while other prosper. For more information read Industries That Thrive On Recession and 4 Characteristics Of Recession-Proof Companies.)
 
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Posted: Jan 22, 2010 07:50 AM by Ryan C. Fuhrmann

John Kenneth Galbraith’s indispensable text “The Great Crash: 1929″ describes the “basic and recurrent process” of investment bubbles.
 
A bubble comes from rising prices, whether of stocks, real estate, works of art or anything else. A price increase attracts attention and buyers, which results in even higher prices. Thus, expectations are justified by the very action that sends prices up. The process continues and optimism about the market effect is the order of the day. Prices climb even higher. Then, for reasons that endlessly will be debated, the bubble bursts. (For information about investing into a bubble, read Riding The Market Bubble: Don’t Try This At Home.)

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Posted: Jan 21, 2010 09:07 AM by Ryan C. Fuhrmann

The restaurant industry appears to be able to stem top-line difficulties by slowing new store growth and focusing on controlling expenses. Moderating food inflation also helped stabilize gross margins. 2010 offers promise as economic conditions are projected to improve and should allow the industry to return to benefitting from a secular trend that also lost its way during the current downturn. Below are three companies that warrant further consideration. (For information on investing with restaurant stocks, read Sinking Your Teeth Into Restaurant Stocks.)

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Sonic, (NYSE:SONC) the fast food operator, just opened the first quarter of its fiscal year in unappetizing fashion. Industry conditions are likely to remain difficult until employment trends improve. An economic recovery will eventually boost Sonic’s fortunes; the company has a number of ways to boost profitability going forward.

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Small-cap consumer goods firm WD-40 Co. (Nasdaq: WDFC) reported first-quarter results last Monday that saw sales come in short of analyst expectations. The share price fell as a result of the shortfall, but earnings beat projections. At a slightly lower multiple, the stock would be worth a closer look as the company has a number of attractive attributes.

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The start of the calendar serves as a reset button for investment manager performance.  With the 2010 clock already ticking, here are three stock picks I think will perform well for the coming year — and over the next few years.

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Posted: Jan 08, 2010 12:32 PM by Ryan C. Fuhrmann

Boyd Gaming (NYSE:BYD) owns and operates a number of gambling properties across the United States. Its properties outside of Las Vegas are performing well during a difficult time in the industry but are not offsetting the challenges it is seeing in its home market. Plus, Boyd is currently looking to double down on its exposure to hard-hit Las Vegas.

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