Tag Archives: etf

Car ETF In Focus Post Mixed Auto Earnings

After strong U.S. light-vehicle sales in March, April witnessed a record. As a result, sales on a seasonally-adjusted annualized rate basis improved significantly. The automobile sector has been seeing certain favorable elements such as low fuel prices and a low interest rate environment. However, these factors failed to translate into impressive growth numbers during the first quarter as a stronger yen stood in the way of realizing the sector’s full potential. As per our Earnings Trend report, Tech and Auto sectors suffered the most negative price reaction of all the 16 sectors during this earnings season. Below we have highlighted in detail quarterly results of some of the major auto companies that have reported recently. Auto Earnings in Detail The largest U.S. automaker’s, General Motors Co. (NYSE: GM ), adjusted earnings of $1.26 per share for the quarter beat the Zacks Consensus Estimate of $1.01 by a wide margin. Earnings increased 46.5% year over year. Revenues in the reported quarter were $37.3 billion, up 4.5% year over year, beating the Zacks Consensus Estimate of $35.7 billion. The stock has shed 5.2% since reporting earnings (as of May 13, 2016). The second-largest carmaker by sales, Ford Motor Co. (NYSE: F ) , posted adjusted earnings per share of 68 cents in the first quarter, up 39 cents from the prior-year quarter and ahead of the Zacks Consensus Estimate of 43 cents. Revenues increased 11% to $37.7 billion and surpassed the Zacks Consensus Estimate of $36.1 billion. For 2016, the company expects pre-tax profit, earnings per share, revenue and automotive operating margin to be equal to or higher than 2015 levels. The stock has lost 3.2% since releasing earnings. Japanese automaker, Honda Motor Co., Ltd. (NYSE: HMC ), reported a loss per share of ¥51.85 (46 cents) in the fourth quarter of fiscal 2016 (ended March 31, 2016) as against earnings of ¥45.45 (40 cents) in the year-ago quarter. The Zacks Consensus Estimate was for earnings of 49 cents per share. However, consolidated net sales and other operating revenues escalated 4.8% year over year to ¥3.66 trillion ($32.46 billion). The figure also surpassed the Zacks Consensus Estimate of $31.88 billion. The year-over-year increase can be attributed to higher revenues from automobile and financial services business operations. For fiscal 2017, Honda expects revenues to decline 5.8% to ¥13.75 trillion ($7.64 trillion). The stock lost 4.8% since it reported earnings. Another Japanese automaker, Toyota Motor Corporation (NYSE: TM ), posted earnings of $2.40 per ADR in its fiscal 2016 fourth quarter, beating the Zacks Consensus Estimate of $2.07. However, the company’s consolidated revenues fell 2.1% year over year to ¥6.97 trillion ($60.6 billion) and were short of the Zacks Consensus Estimate of $63.1 billion. Toyota’s consolidated revenue guidance of ¥26.5 trillion ($252.4 billion) for fiscal 2017 reflects a 6.7% decline from fiscal 2016. The stock is down 4.4% (as of May 13, 2016). While Ford and General Motors reported better-than-expected earnings and revenues for the first quarter, Honda’s quarterly earnings and revenues for the quarter fell short of estimates and Toyota reported mixed results. This puts the spotlight on the exclusive auto ETF, the First Trust NASDAQ Global Auto Index Fund (NASDAQ: CARZ ), which has a sizable exposure to the above-mentioned stocks. CARZ lost more than 2.7% (as of May 13, 2016) in the last 10 days. Let us take a look at this ETF in detail. CARZ in Focus This ETF tracks the NASDAQ OMX Global Auto Index, having exposure to the automobile manufacturers across the globe. The product holds 37 stocks in the basket with Honda, Ford, General Motors and Toyota placed among the top five holdings with a combined allocation of nearly 31.5% of fund assets. Other firms hold less than 5% of assets. In terms of country exposure, Japan takes the top spot at 35.4% while the U.S. takes the second spot having a 23.6% allocation, followed by Germany and South Korea with 19.5% and 8% allocations, respectively. The ETF is neglected with $39.6 million in AUM and sees light trading volume of around 9,500 shares. The product is a bit expensive with 70 bps in annual fees and currently has a Zacks ETF Rank #3 or “Hold” rating with a High risk outlook. Original post

In The Top-Performing Utility Sector, These 4 Groups Stand Out

If you don’t think the market’s still defensive, you haven’t been paying close enough attention to IBD’s 197 industry group rankings. Sure, some growth stocks are working, but many others are not. Meanwhile, defensive areas of the market — namely utility, gold, food and tobacco stocks — continue to hold up. Utilities lagged Tuesday on rate-hike jitters, but the sector is still home to plenty of interesting names. Utilities Select Sector SPDR ( XLU ), the sector’s most popular ETF, is setting up in a tight, flat base with a conventional entry at 49.88. Duke Energy ( DUK ),  a top holding of the exchange-traded fund with a dividend yield of 4.1%, is working on a long cup-with-handle base with an 81.49 buy point. At one point Tuesday, it was less than 2% below the buy point. Earnings growth and sales growth have both been uneven in recent quarters, but that’s not uncommon in the utility space. Leadership remains broad in the utility sector, but some groups inside the sector are acting better than others. One of the better-performing groups, recently ranking inside the top 10, is Utility-Water Supply. But two top-rated leaders in the group, small cap Middlesex Water ( MSEX ) and American Water Works ( AWK ), are extended too far past proper buy points. Not to worry, though. The Utility-Diversified group, which recently ranked inside the top 20, boasts several top performers with healthy charts. WEC Energy ( WEC ) is still in buy range from a prior 58.11 entry. It yields 2.8%. In its latest reported quarter, sales jumped 58% from the year-ago quarter to $2.2 billion, helped by its $9.1 billion acquisition of natural gas utility Integrys last year. Also in the group, Avangrid ( AGR ) started trading in mid-December and yields around 4.2%. The company was formed as a result of a merger late last year between Spanish firm Iberdrola and UIL Holdings. At the end of 2015, Avangrid’s renewable energy subsidiary was the second-largest wind producer in the U.S. with 5.6 gigawatts of wind generation capacity, operating 53 wind farms in 18 states. Electricity providers are another area of strength. Great Plains Energy ( GXP ) has been hugging its 10-week moving average as it works on a flat base with a 32.84 buy point. When the company reported Q1 results early this month, earnings and sales growth accelerated from Q4, rising 42% and 4%, respectively. Great Plains currently yields 3.3%. Portland General Electric ( POR ) is retreating back to a 40.57 entry within a three-month flat-base entry. Among gas distributors, One Gas ( OGS ) is working on a flat base with a 62.35 entry. A Composite Rating of 89 is helped by a consistent track record of annual earnings growth since 2012. But in One Gas’ latest reported quarter, sales fell 25% to $508.4 million, hurt by lower rates and warmer weather.

Roku Holds Lead In Streaming Media Players, But Amazon, Apple Gain

Streaming video device pioneer Roku continues to lead the market, but rivals Amazon.com ( AMZN ), Apple ( AAPL ) and Alphabet ( GOOGL )-owned Google are close behind. Roku accounted for 30% of streaming media players purchased in 2015, down from 34% in 2014, research firm Parks Associates reported Tuesday . The Los Gatos, Calif.-based company makes set-top boxes and streaming media sticks that plug into TVs. Increasingly Roku is getting its software installed in smart TVs, eliminating the need for separate hardware to access Internet video services like Netflix ( NFLX ), Hulu and Amazon Prime Video. Amazon moved into a virtual tie with Google at 22% of streaming media device sales. Amazon sells Fire TV devices and Google sells Chromecast streaming sticks. Apple came in fourth place with 20% market share for its Apple TV set-top box. The top four players accounted for 94% of streaming media players purchased in 2015, up from 86% in 2014, Parks Associates said. About 36% of U.S. broadband households have at least one streaming media player, up from 27% a year ago, Parks said. “Device makers have successfully sold streaming media players to consumers by offering easy access to a variety of content streams, as well as frequent updates that add the latest innovation,” Parks analyst Barbara Kraus said in a statement. “Amazon in particular has benefited by promoting its Fire TV devices in conjunction with the company’s Prime Video service as well as streams from HBO, Showtime and other premium offerings.” RELATED: Netflix Gets Vote Of Confidence From RBC Amid Heightened Skepticism