With economic data taking a backseat to a slew of better-than-expected earnings reports, the broad-based S&P 500 continues to knock off one all-time record close after another. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.
Keep in mind that some companies�deserve�their current valuations. Take railroad operator Union Pacific (NYSE: UNP ) for example. Union Pacific grew profit by 11% in its most recent quarter as it was able to offset demand weakness in coal with higher prices. With many railroad operators predicting a pickup in shipments in the second half of the year, Union Pacific certainly looks to be in great shape moving forward.
Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.
Raise the yellow caution flag
In spite of trucking company YRC Worldwide's (NASDAQ: YRCW ) share price doubling last week following the company's first quarterly profit in six years (that's right...�six years), shares are still down a mind-boggling 99.9928% over the past decade. Somehow avoiding bankruptcy a few years back by diluting existing shareholders into oblivion, YRC has investors now thinking the company may be on the mend. However, its history makes me�believe otherwise.
Top 5 Electric Utility Companies For 2015: Universal Display Corporation(PANL)
Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel display, solid-state lighting, and other product applications. It owns exclusively license or has the sole right to sublicense approximately 1,400 patents issued and pending worldwide. The company licenses and supplies its proprietary UniversalPHOLED phosphorescent OLED technologies and materials to display manufacturers and others. It is also involved in the research, development, and commercialization of other OLED device and manufacturing technologies, including TOLED, which are transparent OLEDs for the fabrication of OLEDs that have transparent cathodes; FOLED that are flexible OLEDs for the fabrication of OLEDs on flexible substrates; OVPD, an organic vapor phase deposition process to deposit the layers of organic material in an OLED; UniversalP2OLED, which are printable phosphorescent OLEDs; OVJP that is an organic vapor jet printing technology; and encapsulation technology for the packaging of flexible OLEDs and other thin-film devices, as well as for use as a barrier film for plastic substrates. In addition, the company provides technology development and support services to third parties for the commercialization of their OLED products. It has strategic relationships with Samsung Mobile Display Co., Ltd.; LG Display Co., Ltd.; AU Optronics Corporation; Sony Corporation; Pioneer Corporation; Panasonic Idemitsu OLED Lighting Co., Ltd.; Tohoku Pioneer Corporation; Moser Baer Technologies, Inc.; Konica Minolta Holdings, Inc.; Denko K.K.; LG Chem, Ltd.; Panasonic Electric Works Co., Ltd.; NEC Lighting, Ltd.; Seiko Epson Corporation; and DuPont Displays, Inc. The company was founded in 1985 and is based in Ewing, New Jersey.
Advisors' Opinion:- [By Seth Jayson]
Universal Display (Nasdaq: PANL ) is expected to report Q1 earnings on May 9. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Universal Display's revenues will expand 13.7% and EPS will remain in the red.
Top 5 Trucking Stocks To Buy Right Now: Ryanair Holdings PLC (RYA)
Ryanair Holdings plc (Ryanair Holdings), is a holding company for Ryanair Limited (Ryanair). Ryanair operates a low-cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, and Morocco. As of June 30, 2012, the Company offered approximately over 1,500 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe with an operating fleet of 294 aircraft flying approximately 1,500 routes. Ryanair sells seats on a one-way basis. The Company also holds a 29.8% interest in Aer Lingus Group plc. As of June 30, 2012, Ryanair�� operating fleet was composed of 294 Boeing 737-800 aircraft, each having 189 seats. Ryanair�� fleet totaled 294 Boeing 737-800s at March 31, 2012. As of June 30, 2012, Ryanair owned and operated four Boeing 737-800 full flight simulators for pilot training. Advisors' Opinion:- [By Inyoung Hwang]
Ryanair Holdings Plc (RYA), the discount airline operator that�� the second-biggest stock in Ireland�� ISEQ index, declined 1.7 percent to 7.23 euros in Dublin. Kerry Group, a supplier of food ingredients, sank 1.4 percent to 45.24 euros.
Top 5 Trucking Stocks To Buy Right Now: Kadant Inc (KAI)
Kadant Inc., incorporated in November 1991, is a supplier of equipment used in the global papermaking and paper recycling industries and a manufacturer of granules made from papermaking byproducts. Through its Papermaking Systems segment, the Company develops, manufactures and markets a range of equipment and products for the global papermaking, paper recycling, and process industries. Through its Fiber-based Products business, the Company manufacture and sell granules derived from pulp fiber for use as carriers for agricultural, home lawn and garden, and professional lawn, turf and ornamental applications, as well as for oil and grease absorption. Its Papermaking Systems segment consists of product lines, such as stock-preparation, fluid-handling, doctoring and water-management. On May 27, 2011, its subsidiary, Kadant Johnson Europe B.V., acquired all the interests in m-clean papertech holding AB. In April 2013, it completed the acquisition of Companhia Brasileira de Tecnologia Industrial (CBTI).
The Company�� customer base includes major global paper manufacturers and with its equipment found in most of pulp and paper mills. The Company manufactures its products in nine countries in Europe, North and South America and Asia. It develop, manufacture and market complete custom-engineered systems and equipment, as well as standard individual components, for pulping, de-inking, screening, cleaning, and refining recycled and virgin fibers for preparation for entry into the paper machine. Its principal stock-preparation products include recycling and approach flow systems and Virgin pulping process equipment.
The Company develop, manufacture and market rotary joints, precision unions, steam and condensate systems, components, and controls used primarily in the dryer section of the papermaking process and during the production of corrugated boxboard, metals, plastics, rubber, textiles, chemicals and food. Its principal fluid-handling systems include rotary joints, siphons, turbul! ator bars, and engineered steam and condensate systems. Its mechanical devices, used with rotating shafts, allow the transfer of pressurized fluid from a stationary source into and out of rotating machinery for heating, cooling, or the transfer of fluid power. Its devices, installed primarily inside the rotating cylinders of paper machines, are used to remove condensate from the drying cylinders through rotary joints located on either end of the cylinder. Its steel or stainless steel axial bars, installed on the inside of cylinders, are used to induce turbulence in the condensate layer to improve the uniformity and rate of heat transfer through the cylinders. Its steam systems control the flow of steam from the boiler to the paper drying cylinders, collect condensed steam, and return it to the boiler to improve energy efficiency during the paper drying process.
The Company develop, manufacture and market a range of doctoring systems and related consumables that continuously clean rolls to keep paper machines running efficiently; doctor blades made of a variety of materials to perform functions, including cleaning, creping, web removal, flaking, and the application of coatings, and profiling systems that control moisture, Web curl, and gloss during paper converting. Its principal doctoring products include doctor systems and holders, profiling systems and doctor blades. Its doctor systems clean papermaking rolls to maintain the operation of paper machines and other equipment by placing a blade against the roll at a constant and uniform pressure. A doctor system consists of the structure supporting the blade and the blade holder. It offers profiling systems that control moisture, Web curl, and gloss during paper converting. It manufacture doctor and scraper blades made of a variety of materials, including metal, bi-metal, or synthetic materials that perform a variety of functions, including cleaning, creping, Web removal, flaking and the application of coatings.
The Company devel! ops, manu! facture and markets water-management systems and equipment used to continuously clean paper machine fabrics and rolls, drain water from pulp mixtures, form the sheet or Web, and filter the process water for reuse. Its principal water-management systems include shower and fabric-conditioning systems, formation systems, and water-filtration systems. Its shower and fabric-conditioning systems assist in the removal of contaminants that collect on paper machine fabrics used to convey the paper Web through the forming, pressing and drying sections of the paper machine. A typical paper machine has between 3 and 12 fabrics. It supplies structures that drain, purify, and recycle process water from the pulp mixture during paper sheet and Web formation. It offer a variety of filtration systems and strainers that remove contaminants from process water before reuse and recover reusable fiber for recycling back into the pulp mixture.
The Company competes with Voith Paper GmbH, Metso Corporation, Maschinenfabrik Andritz AG, Deublin Company, Barco Company, Christian Maier GmbH & Co. KG, Duff-Norton Company, Joh. Clouth GmbH & Co. KG, Bonetti, S.p.A., Metso Corporation and IBS-Paper Performance Group.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Kadant (NYSE: KAI ) , whose recent revenue and earnings are plotted below.
Top 5 Trucking Stocks To Buy Right Now: CBS Corporation(CBS)
CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. The company?s Entertainment segment distributes a schedule of news and public affairs broadcasts, sports, and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; produces and distributes theatrical motion pictures across various genres; and operates online content networks for information and entertainment. Its Cable Networks segment owns and operates multiplexed channels that offers subscription program services, including recently released theatrical feature films, original series, documentaries, boxing, mixed martial arts and other sports-related programming, and special events; and CBS College Sports Network, a 24-hour cable program service related to college sports. This segment also owns and manages Smithsonian Networks, which operates Smithsonian Channel, a basic cab le service in the United States. The company?s Publishing segment publishes and distributes adult and children?s consumer books in printed, audio, and digital formats. Its Local Broadcasting segment owns 29 broadcast television stations; owns and operates 130 radio stations in 28 U.S. markets and related online properties; and owns local Websites that combine television and radio local media brands online to provide the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews. The company?s Outdoor segment sells advertising space on various media, including billboards, transit shelters and other street furniture, buses, rail systems, mall kiosks, stadium signage, and in retail stores. CBS Corporation was founded in 1986 and is headquartered in New York, New York.
Advisors' Opinion:- [By Chris Katje]
Starz is the leading premium movie company with over 56 million subscribers. The company's Starz brand increased its subscribers 8% in 2012 to 21.2 million. Encore, Starz's other corporate brand, increased subscribers 5% to 34.8 million. In comparison, HBO owned by Time Warner (TWX) has 39.5 million subscribers, and Showtime, owned by CBS (CBS), has 21.3 million subscribers.
- [By Damian Illia]
The company owns Kaplan, a leading global provider of educational services to individuals, schools and businesses, across more than 30 countries, Post-Newsweek Stations in Detroit (NBC), Houston (NBC), Miami (ABC), Orlando (CBS), San Antonio (ABC) and Jacksonville, Cable ONE, digital video, Internet and phone services provider to homes and businesses, the Slate Group, a daily online magazine, Trove, a digital team focused on innovation and experimentation with new technologies, Social Code, leading social marketing solutions partner, Celtic Healthcare, and Forney Corporation. The company has recently sold most of its newspaper operations.
- [By Stephen Quickel]
Revenues and earnings of CBS Corp. (CBS), the broadcasting giant, keeps rising, enhanced by $2 billion of share repurchases. Little noticed sources of profit are lush retransmission fees for its content from cable, satellite, and telecom companies.
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