Author Archives: Scalper1

ETF & Stocks In Focus On Sizzling February Auto Sales

After a lackluster start to the year, the auto sector rebounded in February on regained vigor in the economy and fresh signs of increasing consumer confidence. This is especially true as sales climbed 6.9% year over year to an annualized 17.51 million units in February, as per Autodata Corp. This represents the best month for American auto sales since February 2000. Five of the six major American and Japanese automakers reported solid sales growth last month. Ford Motor (NYSE: F ) led the way with 20.2% growth, followed by sales increases of 12.8% for Honda (NYSE: HMC ), 11.8% for Fiat Chrysler (NYSE: FCAU ), 10.5% for Nissan ( OTCPK:NSANY ), and 4.1% for Toyota (NYSE: TM ). On the other hand, General Motors (NYSE: GM ) sales fell 1.5% year over year last month. Robust growth was driven by deeper Presidents’ Day discounts, cheap fuel, easy availability of credit at lower interest rates, and rising income. In addition, higher demand for sports utility vehicles, a plethora of new models, fuel-efficient and technologically packed vehicles, and the need to replace aging vehicles added to the strength. This trend is likely to continue in the coming months. With this, 2016 could be another record year for vehicle sales (read: Mixed Auto Earnings Put This Car ETF in Focus ). The solid data propelled the auto stocks higher and spread bullishness into the entire industry across the globe. Given the solid jump in auto sales, investors may want to take a closer look at the ETFs and stocks from this corner that they could ride on. ETFs in Focus First Trust NASDAQ Global Auto ETF (NASDAQ: CARZ ) This fund offers a pure play global exposure to 37 auto stocks by tracking the NASDAQ OMX Global Auto Index. It is a large-cap centric fund and is highly concentrated on the top four prime automakers – Ford, Toyota, General Motors and Honda – that combined to make up for 32.2% share. In terms of country exposure, Japan takes the top spot at 35.8% while the U.S. and Germany round off the next two spots with 23.8% and 18% share, respectively. CARZ has a lower level of $39.6 million in AUM and trades in a small average daily trading volume of around 11,000 shares. The product charges 70 bps in fees per year and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a High risk outlook. Stocks in Focus While all the auto stocks are in focus for the coming days, we have highlighted stocks that have the potential to move higher than its peers amid recovering sentiments. To accomplish this, we have used Zacks stock screener to spot two stocks that have a Zacks Style Score of ‘A’ for Growth, Value and Momentum each. These when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best upside potential with strong momentum, cheap price and robust growth (read: 3 Momentum Stocks & ETFs to Play ). Cooper Tire & Rubber Co. (NYSE: CTB ) Based in Findlay, Ohio, Cooper Tire is engaged in the manufacture and marketing of replacement tires worldwide. It is the fourth largest tire manufacturer in North America and the eleventh largest in the world. The company saw solid earnings estimate revision of 37 cents for the current year over the past 30 days and is expected to grow at an annual rate of 4%. Further, the company delivered positive earnings surprises in the three of the past four quarters, with an average beat of 26.23%. The stock currently has a Zacks Rank #1. Lear Corp. (NYSE: LEA ) Based in Southfield, Michigan, Lear Corporation is a global leader in designing, developing, engineering, manufacturing, assembling, and supplying automotive seating, electrical distribution systems, and related components primarily to automotive original equipment manufacturers worldwide (see: all the Consumer Discretionary ETFs here ). The stock saw positive earnings estimate revisions from $11.89 to $12.18 per share for 2016 over the past 30 days, representing a year-over-year increase of 12.21%. It delivered an average positive earnings surprise of 9.05% in the last four quarters. The stock has a Zacks Rank #2. Bottom Line A slowly recovering economy and reviving consumer spending will continue to drive auto sales higher, making the above-mentioned ETF and stocks compelling choices for investors to play in the months ahead. Original Post

3 Top-Rated Government Intermediate Bond Mutual Funds To Consider

Mutual funds investing in debt securities are among the most secure investment options which provide regular income while protecting the capital invested. Funds which are part of this category bring a great deal of stability to portfolios with a large proportion of equity, while providing dividends more frequently than individual bonds. U.S. government bond funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered to be the safest in the bond fund category and are ideal options for the risk-averse investor. Meanwhile, intermediate-term funds usually provide a safer option for investors, when compared to small-term funds. Fixed income securities having an average maturity period between 3 and 10 years are classified as intermediate securities. These funds are believed to ensure more stability and provide a higher return than what short-term funds offer. Below, we will share with you 3 top-rated government intermediate bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all government intermediate bond funds, investors can click here to see the complete list of funds . Hartford US Government Securities HLS IB (MUTF: HBUSX ) invests a major portion of its assets in securities that are affiliated to the U.S. government or its entities. HBUSX invests in U.S. treasury instruments and other securities of the U.S. government. HBUSX may also invest in mortgage-backed securities of the U.S. government. The Hartford US Government Secs HLS IB fund has a three-year annualized return of 1.2%. Michael F. Garrett is the fund manager since 2012. AMG Managers Intermediate Duration Government (MUTF: MGIDX ) seeks total return more than that of market indices related to mortgage-backed securities. MGIDX primarily invests in debt securities of the U.S. government or other agencies authorized by the government. MGIDX invests in securities having an impressive credit quality to reduce risk. The AMG Managers Intermediate Duration Government fund has a three-year annualized return of 2.6%. As of June 2015, MGIDX held 369 issues with 11.99% of its assets invested in Freddie Mac Gold Single Family TBA 4% 2046-03-01. Performance Trust Strategic Bond (MUTF: PTIAX ) invests a large portion of its assets in fixed-income instruments which include corporate, government and municipal bonds, asset-backed and mortgage-backed securities and other fixed-income instruments issued by various U.S. governments, municipal or private-sector entities. PTIAX seeks interest income and potential capital appreciation. The Performance Trust Strategic Bond fund has a three-year annualized return of 3.8%. PTIAX has an expense ratio of 0.84% as compared to the category average of 1.01%. To view the Zacks Rank and past performance of all government intermediate bond mutual funds, investors can click here to see the complete list of funds . By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past, but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank. Original Post

Pure Storage Riding Hot Spell Into Its Q4 Earnings Report Today

Pure Storage ( PSTG ) stock was up for the fifth day in a row ahead of its fourth-quarter earnings set for release today after the close. Pure Storage is a provider of flash-chip-based storage systems for the enterprise market, a cutting-edge technology that is making life difficult for storage leaders EMC ( EMC )and NetApp ( NTAP ). Pure Storage CEO Scott Dietzen says the data storage industry is on the cusp of a revolutionary change that it aims to lead. He says Pure Storage is one of the fastest-growing tech companies in history. The Mountain View, Calif.-based company launched its first product in May 2012 and has posted triple-digit revenue growth for at least eight quarters in a row. Make that nine, if Pure Storage holds onto its brisk revenue-growth pace. The consensus estimate of analysts polled by Thomson Reuters call for Q4 revenue of $138.6 million, up 110% from the year-earlier quarter. But that rapid growth has come at a cost, as Pure Storage is pouring big sums into sales and marketing, and research and development, in an aggressive bid to expand market share. The company is expected to post a loss of 16 cents a share, compared with a 25-cent loss last Q4. Pure Storage stock was up 1.2%, near 15, in afternoon trading in the stock market today , and Wednesday touched its 2016 high. Pure Storage made its initial public offering in October, raising $425 million by pricing 25 million shares at 17. A recent report from Summit Research said that while Pure Storage has cutting-edge data technology, it will face an uphill battle trying to dislodge EMC and NetApp. EMC on Feb. 29 announced new products that it called “a quantum leap in flash storage.” EMC said it will commit to all-flash for its primary storage offerings, “relegating traditional disk to bulk and archive storage requirements.” In October, EMC has agreed to be acquired by Dell for $67 billion, a deal that is not yet completed. In December, NetApp announced that it will pay $870 million in cash to acquire SolidFire, a provider of storage systems that are based on flash-memory chips.