44 Ways To Combat the Earnings Season Pinch

by Louis Navellier | April 2, 2013 10:31 am

Before you do anything else today, I want you to circle next Monday, April 8 on your calendar. That’s when Alcoa (NYSE:AA[1]) kicks off first-quarter earnings season—and I suspect that’s when the breadth and power of the stock market will start to deteriorate. That’s because of an earnings shakeout is about to unfold.

It’s no secret that analysts expect just 1.5% earnings growth for the S&P 500—I’ve been talking about it for weeks[2]. However, lately, some of the market’s bellwethers have broken down due lower earnings guidance: Caterpillar (NYSE:CAT[3]), Deere (NYSE:DE[4]), FedEx (NYSE:FDX[5]) and Oracle (NASDAQ:ORCL[6]), to name a few.

Now, the reason that we’re seeing big multinationals getting hit is the stronger U.S. dollar. Between Britain’s credit downgrade, Italy’s botched elections and the Cyprus banking drama, the U.S. dollar has looked relatively attractive next to the pound and the euro. Because multinationals get paid in foreign currencies, their profits get pinched when those currencies depreciate against the U.S. dollar.

Of course, I’ve already established that now’s not the time to cash out[7]. We simply have to take precautions in order to ensure profits in this market. So to prepare let’s look at the 44 big blue chips that have been upgraded and downgraded. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for each of the stocks listed below.

Upgrades

Last Week’s Holds, Now Buys

Symbol Company Name Quantitative Grade Fundamental Grade
ACN[8] Accenture B B
BT[9] BT Group PLC B B
ED[10] Consolidated Edison B C
ETP[11] Energy Transfer Partners B C
KORS [12] Michael Kors C A
LPL[13] LG Display B C
NLSN[14] Nielsen Holdings B C
NOC[15] Northrop Grumman B B
PAYX[16] Paychex B C
RTN[17] Raytheon B C
SNN[18] Smith & Nephew PLC B C
SO[19] Southern B B
TRI[20] Thomson Reuters B C
WDC[21] Western Digital C B
WM[22] Waste Management B C

Last Week’s Sells, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
BBD[23] Banco Bradesco D C
BHI[24] Baker Hughes C D
EOG[25] EOG Resources C D
HPQ[26] Hewlett-Packard C D
MFC[27] Manulife Financial D B
MOS[28] Mosaic D C
PLD[29] Prologis C C
TS[30] Tenaris S.A. D C
VOD[31] Vodafone C C
YUM[32] Yum! Brands C C

Downgrades

Last Week’s Buys, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
AGN[33] Allergan C C
BX[34] Blackstone Group C B
CHT[35] Chunghwa Telecom C C
GE[36] General Electric C C
GGP[37] General Growth Properties B C
PCP[38] Precision Castparts C C
PNR[39] Pentair C D
SYK[40] Stryker C C

Last Week’s Holds, Now Sells

Symbol Company Name Quantitative Grade Fundamental Grade
CAH[41] Cardinal Health D B
CNCO[42] Cencosud D B
F[43] Ford D C
FAST[44] Fastenal D C
GM[45] General Motors D C
JPM[46] JPMorgan D B
KYO[47] Kyocera D D
PXD[48] Pioneer Natural Resources D D
STJ[49] St. Jude Medical D C
UNH[50] UnitedHealth Group D B
WLP[51] WellPoint D B
Endnotes:
  1. AA: http://studio-5.financialcontent.com/investplace/quote?Symbol=AA
  2. I’ve been talking about it for weeks: http://navelliergrowth.investorplace.com/blog/archive/2013/03/46-bellweathers-on-the-move.html
  3. CAT: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAT
  4. DE: http://studio-5.financialcontent.com/investplace/quote?Symbol=DE
  5. FDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=FDX
  6. ORCL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORCL
  7. now’s not the time to cash out: http://navelliergrowth.investorplace.com/blog/archive/2013/03/my-may-2013-forecast.html
  8. ACN: http://studio-5.financialcontent.com/investplace/quote?Symbol=ACN
  9. BT: http://studio-5.financialcontent.com/investplace/quote?Symbol=BT
  10. ED: http://studio-5.financialcontent.com/investplace/quote?Symbol=ED
  11. ETP: http://studio-5.financialcontent.com/investplace/quote?Symbol=ETP
  12. KORS : http://studio-5.financialcontent.com/investplace/quote?Symbol=KORS
  13. LPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=LPL
  14. NLSN: http://studio-5.financialcontent.com/investplace/quote?Symbol=NLSN
  15. NOC: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOC
  16. PAYX: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAYX
  17. RTN: http://studio-5.financialcontent.com/investplace/quote?Symbol=RTN
  18. SNN: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNN
  19. SO: http://studio-5.financialcontent.com/investplace/quote?Symbol=SO
  20. TRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRI
  21. WDC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WDC
  22. WM: http://studio-5.financialcontent.com/investplace/quote?Symbol=WM
  23. BBD: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBD
  24. BHI: http://studio-5.financialcontent.com/investplace/quote?Symbol=BHI
  25. EOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=EOG
  26. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  27. MFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=MFC
  28. MOS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MOS
  29. PLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=PLD
  30. TS: http://studio-5.financialcontent.com/investplace/quote?Symbol=TS
  31. VOD: http://studio-5.financialcontent.com/investplace/quote?Symbol=VOD
  32. YUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=YUM
  33. AGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AGN
  34. BX: http://studio-5.financialcontent.com/investplace/quote?Symbol=BX
  35. CHT: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHT
  36. GE: http://studio-5.financialcontent.com/investplace/quote?Symbol=GE
  37. GGP: http://studio-5.financialcontent.com/investplace/quote?Symbol=GGP
  38. PCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=PCP
  39. PNR: http://studio-5.financialcontent.com/investplace/quote?Symbol=PNR
  40. SYK: http://studio-5.financialcontent.com/investplace/quote?Symbol=SYK
  41. CAH: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAH
  42. CNCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=CNCO
  43. F: http://studio-5.financialcontent.com/investplace/quote?Symbol=F
  44. FAST: http://studio-5.financialcontent.com/investplace/quote?Symbol=FAST
  45. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  46. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  47. KYO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KYO
  48. PXD: http://studio-5.financialcontent.com/investplace/quote?Symbol=PXD
  49. STJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=STJ
  50. UNH: http://studio-5.financialcontent.com/investplace/quote?Symbol=UNH
  51. WLP: http://studio-5.financialcontent.com/investplace/quote?Symbol=WLP

Source URL: http://investorplace.com/2013/04/44-ways-to-combat-the-pinch-yum-vod-agn-bx-cht-pnr/
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