Large Cap Stocks Archive

Does Warren Buffett's Portfolio Make the Grade?

I've long been an admirer of Warren Buffett, and like many investors, I keep an eye out for Buffett's latest investments to see what he's up to.

According to a regulatory disclosure form from last week, it appears that Buffett's investment vehicle Berkshire Hathaway (BRKA) is making a big move into health care. By using my Portfolio Grader online stock-rating tool, you can take a closer look at Berkshire Hathaway's holdings and see my opinion of each stock (because BRKA is effectively one big mutual fund, Portfolio Grader doesn't rate it).

10 Bellwether Stocks and What Their Earnings Mean for You

Earnings season has been good for many top stocks. But a lot of those stellar stock earnings reports are due to cost-cutting, rather than real top- or bottom-line revenue growth. In order to see what those earnings reports really mean, you have to look beyond the surface to see how the companies got to those figures. Here, I take a look at 10 bellwether stocks and what their most recent stock earnings mean for investors and the overall market.

Alcoa, Chevron and Progressive Kick Off New Earnings Season

This week marks the beginning of second-quarter earnings season and I wanted to give you a preview of what to expect. I often refer to earnings season as Judgment Day for Wall Street. This is when we find out who's been raking it and who's been spilling red ink.

The second-quarter earnings season will also be important because we might see the first signs that the recession has bottomed out. I'm not saying things will be rosy, but we may no longer see the massive losses that plagued us during first-quarter earnings season.

Load Up on These All-American Stocks Now

July 4th is coming up this Saturday and the nation will celebrate its 233rd birthday. The past year has been pretty rough for the old Republic, with the economy going through its worst spat in 80 years. Still, I'm an optimist and I think we'll come through this stronger than ever. To honor America's birthday, I want to highlight three great all-American brands that deserve a place in your portfolio. I always like companies with strong brand names because it helps them weather tough economic times better than unknown companies.

Bed Bath and Beyond Is a Buy

Yesterday, after the market closed, Bed Bath & Beyond (BBBY) reported earnings that beat estimates. The better than expected results were due mainly to cost-cutting efforts and strong operating performance at both new and existing stores. Here's why BBBY is a buy today.

Kindle on Fire – 5 Reasons to Buy Amazon

When someone says that such and such a stock is a must-buy, they are usually enamored with that company's ability to innovate. Any business that can stay one step ahead of the competition with cutting-edge products typically enjoys many years of revenue and profit growth. That is why Apple gets so much attention. Apple has successfully proven its ability to innovate many times over. As a result, its stock has garnered a significant premium. With Kindle, Amazon is showing that it, too, can innovate. That's just one of the reasons I like AMZN now.

Kroger Reports Increase in Earnings, But Stock Is Hampered by Falling Gas Prices

Kroger Co. (KR), one of the nation's largest retail grocery chains, reported an increase in both profits and earnings today. But in addition to supermarkets, Kroger operates 798 gas stations, and the company was hurt by falling gas prices in the first quarter.

California Jobless Rate May Hit 11.5%

The economy in my native state of California is in free fall.

Research In Motion Is Still a Hold

Blackberry-maker Research In Motion (RIMM) reported earnings after the bell yesterday and the results were pretty good.

Jobless Claims Fall

We finally had a week of falling jobless claims. This breaks a streak of 21 straight weeks of higher claims; 19 of those weeks were records.

FedEx Drops on Lousy Guidance

One year ago, I listed FedEx (FDX) as a stock to sell immediately. Since then, the stock is down about 35%, and I don't see things getting much better any time soon. The company just announced earnings for its fiscal fourth quarter (ending in May). The earnings report was pretty good--64 cents per share compared with Wall Street's consensus of 51 cents a share. The problem, however, was the company's future guidance.

Don't Believe the Inflation Headlines

This morning, the government reported on consumer inflation for May. The Labor Department said that consumer prices rose just 0.1% last month which was less than the 0.3% expected by Wall Street economists.

Looking Ahead to Earnings Season

The second-quarter earnings season is shaping up to better than many analysts expect. Not too long ago, the S&P 500 was forecast to have its second-quarter earnings decline by 20%. But thanks to a decaying U.S. dollar, plus some economic "green shoots," the second-quarter earnings are now expected to decline by 12%.

Fed Gov Warsh Warns of Long Slump

At 2 p.m., the stock market is down again. The Dow is currently down by about 80 points. Federal Reserve Gov. Kevin Warsh threw some cold water on hopes for a strong recovery. He said he expects business and consumer spending to remain weak for several quarters, and unemployment to remain high.

Best Buy's Profits Drop

It's no secret that retailers are having a tough time. Best Buy (BBY) just reported that its earnings dropped from 43 cents a share in last year's first quarter to 36 cents a share for this year's first quarter. Sales rose 12% to $10.1 billion.

Home Depot Lifts Guidance

Shares of Home Depot (HD) are getting a nice lift today as the company increased its full-year EPS guidance. The company now sees earnings coming in between 20% and 26% lower than last year. The earlier forecast was for a 26% drop.

5 Dow Stocks to Sell Now

Cisco and Travelers are joining the 30 stocks that make up the Dow Jones Industrial Average, replacing GM and Citigroup. But don't look at the Dow stocks as places for your investment money. Here are 5 Dow stocks to sell now.

Bristol Myers Squibb Offers a Rare Find These Days - High Dividends

Bristol-Myers Squibb is one of the few blue chip stocks to continue to offer shareholders a solid dividend. That is more rare among large cap stocks than you think. A full 59 of the S&P 500 stocks have either cut or eliminated their dividend. That's just one reason BMY is a good buy.

Dine Equity - The Next Big Restaurant Play

Conventional wisdom would have you believe that restaurant stocks have no chance in this economy. Conventional wisdom would be wrong. Dine Equity (DIN) has great potential for investors now.

Which Fortune 500 Companies Are Worth Investing in Now?

Fortune magazine is out with its updated list of top 500 companies in the country. The Fortune 500 list is a bit of a misnomer. Remember, large revenue doesn't always equate to success and profits for shareholders. A prime example of this is the dot-com boom when excessive spending ensured that no matter how high revenues grew, profits were mostly non-existent. But being large does have its advantages. The question is are the top Fortune 500 companies worthy of your investment?

The New Fortune 500

Fortune magazine is out with its updated list of top 500 companies in the country. The Fortune 500 list is a bit of a misnomer. Remember, large revenue doesn't always equate to success and profits for shareholders. A prime example of this is the dot-com boom when excessive spending ensured that no matter how high revenues grew, profits were mostly non-existent. But being large does have its advantages. The question is are the top Fortune 500 companies worthy of your investment?

Why You Want to Own McDonald's Now

McDonald's is a great buy now for many reasons beyond the state of the economy. MCD management has proven its mettle in tough times. Here's why you want to own MCD now.

Chrysler Has a Lifeline, General Motors Not So Much

Chrysler is fortunate that Fiat is coming to its side, although there may be painful choices. General Motors, however, faces a far more uncertain future. What's more, the EPA's recent decision isn't helping matters.

My Final Four Portfolio Part 2

I eagerly await this weekend's NCAA Basketball Tournament. And I've selected four stocks -- one to represent each of the final four teams -- that deserve a place in your portfolio. You don't have to be a hoops fan to profit from these companies.

IBM Proves Resilient

IBM is rumored to be trimming 5,000 jobs. But the blue chip company has proven resilient in these tough times. Here's why I think IBM's earnings release next month could prove to be a boon for the stock.

General Mills Post Profit Decline

One of my favorite consumer stocks, General Mills (GIS), posted a decline for its fiscal third-quarter earnings. The stock is currently down in today's trading, but as I look over the earnings report, I think it's really good news. Getting to the numbers, General Mills earned 79 cents a share which was eight cents less than the Street's consensus. But here's the key--the company raised its full-year earnings forecast to a range of $3.87 to $3.89 a share.

IBM to Buy Sun

The markets are buzzing this morning with the news that IBM (IBM) is about to buy Sun Microsystems (JAVA) for $7 billion. Shares of JAVA are up about 60% in this morning's trading.

Why China Isn't Happy With the U.S. Economy

One of the major concerns I've had of the U.S. government's economic policy (both Bush and Obama's) is that it's bitten off more than it can chew. This has serious repercussions for investors, especially holders of U.S. dollars.

The End of the Road for GM

The collapse of the market for vehicle loans has devastated the Big 3 automakers. Even though GMAC qualified for TARP money and lowered its credit rating for potential buyers, it hasn't helped sales at General Motors. The outlook is bleak for GM and time is clearly running out.

Wal-Mart Boosts Dividend By 15%

The market is down again in early trading this morning. One bright spot is Wal-Mart (WMT). The retail giant announced that it's hiking its quarterly dividend by 15% to 27.25 cents a share. This is very good news and it's interesting because I recently discussed the importance of dividends. In particular, I singled out Wal-Mart for its long-term track record of yearly dividend increases. The company has now raised its dividend every year for the last 35 years.

AIG Is Set to Post the Largest Quarterly Loss in History

The futures markets are pointing to another lower opening. In fact, the Dow could open below 7000 this morning for the first time in nearly 12 years. The big news weighing on the market is that the government is giving American International Group (AIG) another $30 billion in taxpayer money. The insurance company is expected to report a loss of $62 billion. That's an astounding figure. Very few companies are worth that much. In fact, very few companies have ever been worth that much.

General Motor's Awful Quarter

This morning, General Motors (GM) reported a quarterly loss of nearly $10 billion, and the company lost over $30 billion last year. GM's cash balance is now down to $14 billion. CEO Rick Wagoner is about to ask the Treasury for even more cash so the company will make it through this year.

Sprint Posts Loss

Here's a story that we're going to see more of. Sprint Nextel (S) cut costs but still posted a fourth-quarter loss of $1.6 billion. Still, that's a lot better than last year's loss of $29 billion.

Auto Bailout Plans Unclear, Auto Stocks in Trouble

Is the auto bailout going to work? Now that the economic stimulus bill has been passed and signed, the next big test for the Obama administration will be how to deal with our dysfunctional car companies. The government loaned the car companies billions of dollars, and the deal called for them to come up with their survival plans. The deadline for those plans is today.

McDonald's Earnings Report

The market is getting a nice lift this morning. McDonald's (MCD) reported strong earnings of 87 cents a share which was four cents better than consensus. The only weak spot was that sales were a bit below what the Street wanted to see so the shares have pulled back slightly. This is simply some near-term profit-taking. The important news is that MCD had a good quarter in face of many economic challenges. I'm also happy to see that the company is planning to invest $2.1 billion of its own money to open 1,000 new restaurants. That's the kind of bold actions I like to see. McDonald's is a strong buy.