CM – Top US stocks: Adobe, FedEx, and Uber

Joshua Warner
September 21, 2021 1:25 p.m.

Adobe will release its third quarter results today after closing, and the company will continue to thrive as demand for its creative, marketing and analytics software boom as companies digitize and much of our daily lives move online .

Adobe announced that it would target sales of $ 3.88 billion and diluted earnings per share of $ 2.27. Analysts expect the company to exceed those targets with projections that quarterly revenue will increase to $ 3.89 billion from $ 3.22 billion last year, while the diluted EPS forecast of $ 1.97 on Will go up $ 2.29. Notably, Adobe has exceeded expectations for eight straight quarters.

You can read the full preview before Adobe wins and our technical analysis of the stock here.

FedEx will post its first quarter results today after the market closes, building on the record results of the previous quarter as it continues to benefit from the explosive demand for e-commerce since the pandemic began.

Analysts expect sales to increase from $ 19.32 billion in the previous year to $ 21.90 billion and quarterly net income from $ 1.24 billion to $ 1.36 billion will increase, followed by diluted earnings per share of $ 4.72 to $ 4.93. FedEx has exceeded expectations for the past five consecutive quarters. While there are no concerns about future demand, the focus will be on how FedEx fares ahead of the main holiday season, given rising costs and a tight labor market.

You can read the full preview of the FedEx wins and our technical analysis of the stock here.

Uber raised its expectations this morning, saying it could achieve its long-awaited goal of being profitable in the current quarter.

The ride and meal delivery company said it was now on track to deliver a quarterly adjusted Ebitda between a loss of $ 25 million and a profit of $ 25 million in the third quarter, after it previously announced had to post a loss of around $ 100 million. The upgrade is due to strong earnings improvements in both divisions and now expects an Ebitda between break-even and $ 100 million by the end of this year in the fourth quarter of 2021.

Uber also said it now expects gross bookings in the third quarter of between $ 22.8 billion and $ 23.2 billion, after previously targeting $ 22 billion to $ 24 billion.

Mitsubishi UFJ Financial Group announced today that it has agreed to sell its private banking arm, which is part of its US subsidiary MUFG Union Bank, to US Bancorp for approximately $ 8 billion in cash and shares for sale.

The Japanese company said the US market was still important but focused on corporate deals, which allowed US Bancorp to unlock the value of its broader business. The unit sold had net assets of $ 15.89 billion at the end of 2020, when net income fell to $ 38 million from $ 746 million in 2019.

The total amount of the transaction will be approximately $ 17.6 billion, consisting of $ 8 billion from US Bancorp and $ 9.6 billion received prior to closing of the deal in the form of Dividends and buybacks will be taken out of business. The consideration from US Bancorp is said to be split between approximately $ 5.5 billion in cash and 44 million shares in the company, giving the Japanese company a 2.9% stake in the US bank.

ConocoPhillips has agreed to purchase Royal Dutch Shell’s assets in the Permian Basin for $ 9.5 billion while continuing business operations and consolidation in the region.

The deal includes assets that currently produce around 175,000 barrels of oil equivalent per day. They had gross net worth of $ 10.5 billion at the end of 2020 and recorded a loss of $ 491 million before tax last year. ConocoPhillips said the deal is « very profitable on key financials » as it strengthens its existing position in the Permian Basin and will result in better free cash flow generation and improved shareholder returns.

Shell, which will leave the region as a result of the sale, said it will return $ 7 billion to shareholders upon completion of the transaction before the end of 2021.

Stocks of airlines, including American Airlines, Delta Air Lines and United Airlines, remain in the game after rising higher yesterday after the US confirmed it will start offering fully vaccinated UK and EU travelers starting next month be opened.

American Airlines rose over 3% yesterday, while Delta and United both rose 1.7% after the government confirmed in early November that the borders would be opened to people from the UK and the EU. This will allow airlines to begin rebuilding their transatlantic business and build on the stronger recovery in domestic traffic in recent months.

According to reports, searches for flights from the UK to the US rose over 700% after the announcement, with New York, Orlando, Las Vegas, Miami and Los Angeles emerging as popular travel destinations.

Lennar, the second largest home builder in the US, posted impressive third-quarter results, overshadowed by warnings that supply chain challenges continue to weigh on business and a disappointing outlook for the final quarter of 2021.

The company said in the quarter Delivering 15,199 homes, 10% more than last year, and a 5% increase in orders. The order backlog at the end of the reporting period increased by 31% to 25,819 apartments. As a result, revenue soared 18% to $ 6.9 billion, and better margins meant net income more than doubled from $ 666.4 million to $ 1.4 billion.

Lennar said the « unprecedented supply chain challenges » are expected to continue for the foreseeable future, prompting the company to reduce the number of homes to be completed in the fourth quarter.

JPMorgan has competition in the UK banking market intensified after it launched its retail digital bank called Chase and introduced the UK to its wide range of products for the first time, starting with the new version of checking accounts.

The US bank originally announced the plans in January when it said the digital bank rebuilt from the ground up would enable customers to take advantage of the modern style of online banking that is big and trustworthy Financial institution is supported. The launch marks JPMorgan’s first entry into the retail banking sector outside of North America and intensifies rivalries with companies such as Barclays, Natwest, Lloyds and HSBC.

Great Britain is to be the test environment for Chase, which, if successful, will also be introduced in other European countries. It offers incentives to attract customers, such as B. 1% cashback for debit card spending and high-yield savings tools.

Johnson & Johnson has said that a second dose of his Covid-19 single-shot vaccine will be more effective and provide improved protection against the virus.

J&J said a second dose about two months after the first was 94% effective in his latest study, versus 70% after one dose. It will build on calls for the US and other countries to promote booster shots.

A separate study also found that the single-shit vaccine was 79% effective in preventing Covid-19 cases in those who had it in the US and 81% in preventing hospitalization in the United States Proven effective compared to unvaccinated individuals.

Video game company Activision Blizzard said this morning that it continues to work with regulators to resolve a number of workplace complaints and is actively seeking to improve its policies and procedures to create a better environment for employees.

“We are committed to making Activision Blizzard one of the best, most inclusive, places to work. There is absolutely no place in our company for discrimination, harassment or unequal treatment of any kind. While we continue to work in good faith with regulators to address and resolve past workplace issues, we also continue our own initiatives to ensure we are the best place to work. We continue to strive to address all workplace issues directly and promptly, ”said CEO Bobby Kotick.

The SEC reportedly cited Activision for handling matters involving multiple current and former employees at a time when the company is embroiled in allegations of harassment and equal pay violations. Activision said it has already taken action, including « significant staff changes leaving a number of employees. » It is also hiring a new chief people officer, Julie Hodges, who comes from Disney.

The Lucid Group, better known as Lucid Motors, is in the game today after confirming that their Air Dream Edition range, due out later this year, offers 160 kilometers more range than theirs closest competitor Tesla.

The company earned an Environmental Protection Agency rating of 520 miles, more than 160 miles more than Tesla’s Model S, which can travel 405 miles on a single charge, and was the first car to break the 500-mile mark .

Robinhood is testing a new crypto wallet and cryptocurrency transfer features to make it easier for users to send and receive bitcoins, according to Bloomberg.

The report said there was evidence of the company’s work on features that appeared in a beta version of its iPhone app. Investors have been eagerly waiting for the company to launch these new products, with the wallet helping to make it a central hub for people to store their crypto investments in. It was viewed as an area of ​​lack of exposure to Coinbase, which already has crypto wallets as part of its key offering.

Enphase Energy was listed as overweight by KeyBanc when it began coverage of the stock, citing on the good prospects in the solar industry.

Big Lots was downgraded from Overweight to Neutral by Piper Sandler on concerns that the end of the stimulus packages could affect the retailer’s sales.

Vail Resorts was upgraded from sector weight to overweight by KeyBanc ahead of the expected surge in winter vacation demand.

D. R. Horton raised his target price from $ 128 to $ 129 from $ 128 after raising his forecast for the final quarter of 2021.

Oshkosh had lowered his Jefferies price target to $ 105 from $ 150 amid concerns about near-term deliveries and uncertainty in the defense sector.

Steven Madden had raised its target price from $ 44 to $ 50 from $ 44, believing it had a resilient supply chain in the current difficult environment.

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