It’s always a good idea to track analyst upgrades.
Often, upgrades and price revisions are influenced by 1) company fundamentals, such as financial health, future growth, and even meetings with management; 2) industry and market trends, including specific market conditions and economics; 3) earnings and financial data, including earnings reports that came in better than expected, or competitive analysis of a competitor, and guidance; 4) or, they may be piling into a stock based on other firms.
But never rely solely on upgrades to buy. Instead, pay attention to what’s happening technically and fundamentally. The last thing you want to do is buy into a recently upgraded, but overvalued stock. That’s a great way to lose money.
Here are some of the top, most recent upgrades you may want to take a look at.
Penn Entertainment (PENN)
Stifel upgraded Penn Entertainment to a buy rating, with a price target of $21 a share. This follows its termination of its sports betting agreement with ESPN earlier than planned.
“When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space,” said Jay Snowden, CEO and President of PENN Entertainment, in a company press release.
“Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration. We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator,” he added.
Time Released: 8:30 AM, Monthly, Covers Prior Month Released By: Labor Department/Bureau of Labor Statistics (BLS)
When a dentist and his wife walk into a Home Depot in Chicago and pay $20 more for a new refrigerator than they would have paid two months before, the Bureau of Labor Statistics (BLS) wants to know about it. Why? Because higher prices are a sign of inflation.
The BLS releases the CPI on the fourth week of every month. It is the best way for investors to tell if inflation is becoming a problem. The CPI is a measure of the average change in the prices paid by urban consumers for consumer good and services. It tracks the spending patterns of about 87 percent of the total US population. It follows all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the un-employed, and retired persons. It also tracks wage earners and clerical workers. It excludes the spending patterns of people in rural areas such as farmers, people in the military, and institutions such as prisons and mental health hospitals.
The Consumer Price Index is the most reliable barometer of inflation. If consumers are paying more for the goods and services they buy, inflation is on the rise. To calculate the CPI, the BLS adds together the current prices of typical items people buy and compares them to the prices they paid for the same items during an earlier period. The percentage increase in price is the inflation number. Rising prices over a prolonged period signal inflation. Falling prices signal deflation.
What kind of Mickey Mouse operation is running this place? That might be a question you’re asking because of the Government Shutdown. I bring up because the Disney Companies releasing their Earnings Thursday morning before the Open.
Thursday, November 13
Before the Open: Disney (DIS)
Normally I would talk about the CPI & PPI (Consumer Price Index & Producer Price Index), but neither of these reports look to be released due to the Government Shutdown.
While the Government isn’t spending any money to speak of, the US Treasury Department is still going to Auction off 10-year & 30-year Bonds this week. Ironically the proceeds are used to fund the Government.
It should be interesting if the Market is getting tired of what’s happening in Washington DC, you might see it affected in the Bond Auctions - but I doubt it!
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