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As business booms, RTX Corp.’s (formerly Raytheon Technologies) outlook remains strong.
Perimeter Solutions Inc. reported strong revenue and earnings as it benefits from its unique position in aerial retardants backed by a multi‑year government contract base.
T. Rowe Price Group trades cheaply despite offering a high 4.8% yield with a 40‑year dividend‑growth track record and net cash balance sheet.
Mattr Corp. (formerly ShawCor) offers upside thanks to end-market demand drivers as well as potential for further tuck-in acquisitions or internal expansion.
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PFIZER INC. $33 (New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 6.2 billion; Market cap: $204.6 billion; Price-to-sales ratio: 4.1; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.pfizer.com) has agreed to merge with Irish drug maker Allergan plc (New York symbol AGN). Allergan makes a variety of drugs, including treatments for Alzheimer’s disease, depression, dry eye, enlarged prostate, overactive bladder, cystic fibrosis and bacterial infections. It also makes the anti-wrinkle drug Botox. Under the deal, Allergan shareholders will receive 11.3 Pfizer shares for each share they hold. That will give them a 44% stake in the combined company, which will be the world’s biggest pharmaceutical maker....
These three technology firms continue to see slowing demand for their traditional, but still highly successful, products. In response, they’re shifting into related areas such as cloud computing. We feel their strong balance sheets and expertise will help them adapt, both through acquisitions and internal growth, but only two are buys right now. INTEL CORP. $34 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.7 billion; Market cap: $159.8 billion; Price-to-sales ratio: 2.9; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.intel.com) is the world’s leading chip maker. Its products power 80% of all personal computers....
TUPPERWARE BRANDS CORP. $58 (New York symbol TUP; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 50.4 million; Market cap: $2.9 billion; Priceto- sales ratio: 1.2; Dividend yield: 4.7%; TSINetwork Rating: Above Average; www.tupperwarebrands.com) makes household goods, mainly plastic food and beverage containers, as well as cosmetics and fragrances. In the three months ended September 26, 2015, Tupperware’s sales fell 11.5%, to $521.0 million from $588.7 million a year earlier. Overseas markets supplied 73% of Tupperware’s sales, so if you exclude the negative impact of the high U.S. dollar, sales rose 7%. Earnings declined 12.2%, to $0.79 a share from $0.90. For all of 2015, the company expects its sales to rise 4% to 5%, along with earnings of $4.39 to $4.44 a share, excluding exchange rates. The stock trades at 13.1 times the midpoint of that range, which is reasonable in light of Tupperware’s large international operations. The $2.72 dividend seems safe and yields 4.7%....
NORDSTROM INC. $58 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 185.4 million; Market cap: $10.8 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.6%; TSINetwork Rating: Average; www.nordstrom.com) is down 30% from its peak of $83 in March 2015. The company is seeing slowing sales, and it’s investing in new websites and stores in Canada. That’s squeezing its profit margins. In its fiscal 2016 third quarter, which ended October 31, 2015, sales rose 6.5%, to $3.2 billion from $3.0 billion a year earlier. Same-store sales rose 0.9%, well below the consensus forecast of a 3.6% gain. Earnings fell 21.9%, to $0.57 a share from $0.73. Nordstrom now expects same-store sales growth of 2.5% to 3.0% for all of fiscal 2016, down from its earlier forecast of 3.5% to 4.5%. It also cut its full-year earnings outlook to $3.35 a share from $3.75. The stock trades at 17.3 times the new estimate. That’s a reasonable multiple, as the company’s margins should improve once its new investments begin contributing to its profits....