Overview After its spin-off of Baxalta in July 2015, Baxter International (BAX) restructured its operations, transforming into a leaner, more efficient organization with a focus on core capabilities. Following the spin-off, the company targeted a steady net-debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of ~2x. Currently, the ratio stands at ~1x. As discussed in the […]
Overview BD (BDX) has registered strong operating margin expansion in recent years. Its margin improved by 100 basis points in fiscal 2015 and 200 basis points in fiscal 2016. In fiscal 2017, BD’s margin expanded by ~180 basis points. In 4Q17, BD’s operating margin grew ~14.6% YoY (year-over-year), limited by 700 basis points due to the divestiture of BD’s […]
Intuitive Surgical reported a gross profit margin of ~71.8% (of total sales) for 3Q17. This margin was lower, however, than the 73.1% it reported in 3Q16.
According to the latest rating recommendations in a Reuters survey comprised of 18 brokerage companies, 61.0% of the firms gave ISRG a “buy” rating, and 33.0% rated it a “hold.”
Baxter International (BAX) has been going through a cost transformation and reorganization process for some time. The initiative includes some leadership and management changes.
A failure to raise the debt ceiling will likely result in a US government shutdown and a default by the US, which would be catastrophic for the global economy and financial markets (VTI) (USMV).
Varian Medical Systems and Varex On Jan 30, 2017, Varian Medical Systems (VAR) completed the spin-off of its Imaging Components business, which is now a standalone company named Varex Imaging (VREX). That day, Varian stock fell more than 12%. Varian distributed 0.4 Varex shares per Varian share to shareholders as of January 20, 2017. The distribution […]
US growth forecast In its July 23 update to its WEO (World Economic Outlook) report, the IMF (International Monetary Fund) downgraded its US growth forecast. Growth for 2017 has been revised to 2.1% from 2.3%, and to 2.1% from 2.5% in 2018. The IMF’s reasons for the downgrade included lackluster growth in the first quarter and […]
On July 12, 2017, a US district court judge increased the penalties to be paid by Zimmer Biomet Holdings to Stryker related to its patent infringement case.
The tone of Yellen’s responses before the committee confirmed that the Fed is set to stay its course on monetary tightening, leading to policy normalization.
Stryker (SYK) has identified its need to differentiate its offerings in the competitive orthopedics market, which has undergone business model changes.
Becton Dickinson (BDX) has a diversified presence around the world. The company’s sales contribution in 2016 from the United States, however, rose to 55% from around 50% in 2015.
Revenue estimates On October 25, 2016, Baxter International (BAX) will announce its fiscal 3Q16 earnings for the period ending September 30, 2016. Wall Street has estimated Baxter’s 3Q16 revenue to be about $2.55 billion, a marginal decline from last quarter’s revenue of ~$2.58 billion. Investors can gain exposure to Baxter by investing in the iShares Edge […]
On July 28, 2016, Pfizer announced positive results from the Phase 3 trial testing efficacy of Xeljanz as therapy for patients suffering with moderate to severely active ulcerative colitis (or UC).
Historically, we have seen Buyback does perform very well across all interest rate environments. Looking at the data back to the mid-80s, it does well.
On September 19, 2016, Thermo Fisher Scientific (TMO) announced the strategic acquisition of FEI Company (FEIC) for $4.2 billion, or for $107.50 per share in cash.
Richard Bernstein Advisors is bullish on US equities. A major reason that drives its enthusiasm for US stocks is its assessment that the worst of the corporate profits recession is already over.
The potential for a downside protection and upside participation is how minimum volatility strategies have delivered strong risk-adjusted returns over the long term.
Varian Medical Systems has ventured into the proton therapy business and has a huge product pipeline in this area. The company generated approximately $300 million through its proton therapy business in 2015.
AT&T’s prepaid customers in the domestic wireless component increased by a significant ~21.3% year-over-year and reached ~12.2 million by the end of 1Q16.
During the Jefferies Technology, Media, and Telecom Conference, AT&T’s Scott Mair talked about how AT&T’s wireless network capacity may be able to meet its future needs.
Baxter International (BAX) reported ~$2.4 billion in total revenues in 1Q16. Of that, ~$1.5 billion was contributed by the company’s Hospital Products business.
In 1Q16, LabCorp (LH) reported strong revenue and earnings growth due to the effective implementation of multiple strategic initiatives. LabCorp is the world’s leading healthcare diagnostics company.
Target’s business model has been tested over several economic cycles. Even during the recession in 2008–2009, it managed to raise its dividend per share.
Target has identified four signature categories it’s concentrating on to provide higher store and web traffic and sales: Baby, Style, Wellness, and Kids.
In order to mitigate the impact of these higher costs, Walmart is investing considerably in pricing via its everyday low prices and everyday low costs loop.
On February 3, 2016, Becton Dickinson (or BD) (BDX) released its 1Q16 earnings. After the announcement, BD’s share price fell 2.7% from $145.05 on February 2.
Abbott Laboratories (ABT) reported ~$5.2 billion of revenues worldwide in 4Q15. Of that, ~$1.8 billion was generated through the company’s Nutrition segment, which accounts for about 35% of Abbott’s total revenues.
AT&T and DIRECTV merged on July 24, 2015. At the completion of this transaction, the equity value of DIRECTV was ~$47.1 billion and its net debt was ~$15.9 billion.
Based on the RootMetrics Metro results for Toledo, Verizon didn’t have to share the first spot in the overall network performance metric with AT&T in 2H15.
According to the company, the penetration of its Next installment plan continued to rise sequentially during 3Q15 among its wireless postpaid smartphone users.
During the Wells Fargo Technology, Media, and Telecom Conference on November 10, Verizon’s CFO highlighted some aspects of its wireless data traffic growth.
During the Wells Fargo Technology, Media, and Telecom Conference, Verizon’s CFO talked about the recent performance of its wireline enterprise segment.
In this part, we’ll look at the competitive Internet proposition of the FiOS service. We’ll compare the speed offered by Verizon’s FiOS with other large ISPs.
AT&T changed its segment reporting structure. Its new segments are Business Solutions, Entertainment and Internet Services, Consumer Mobility, and International.
VF Corporation saw sales of $2.5 billion in 2Q15, up 4.7% year-over-year. Its performance was boosted by top brands The North Face, Timberland, and Vans.
Minimum volatility funds have outperformed broader markets in the long term. By limiting the downside during the troughs of a volatile market, the minimum volatility index is better able to capitalize on rebounds.
Nike expects to grow its Free Cash Flow, or FCF, at a faster pace compared to net income over the next five years through fiscal 2020. In fiscal 2015, FCF grew by ~74%.
Analysts expect Verizon’s postpaid churn in 3Q15 to be similar to what it was a year earlier. On a sequential basis, Verizon’s postpaid churn is expected to increase during the quarter.
During the Deutsche Bank Media, Internet, & Telecom Conference, John J. Stephens talked about AT&T’s domestic video component after the DIRECTV merger.
Verizon launched its Custom TV service in April. A skinny bundle service, it gives more choices to customers, allowing them to select their TV channels
The iShares MSCI USA Minimum Volatility ETF (USMV) selects stocks for its portfolio on the basis of volatility. USMV’s top holdings include AT&T (T), McDonald’s (MCD), and AutoZone (AZO).
The iShares MSCI USA Minimum Volatility ETF (USMV) and PowerShares S&P 500 Low Volatility Portfolio (SPLV) are two smart beta ETFs that include only those stocks from the S&P 500 index (SPY) that have low volatility.
USMV’s top holdings have more buy and hold recommendations than sell recommendations from various Wall Street analysts. The average PBV of the whole USMV portfolio is 3.06.
Despite having a low-risk approach, USMV has performed strongly over the years, despite having a low-risk approach, thanks to its choice of stocks and indexing method.
