Major Industrial, Oil, Consumer Stocks Headline Investing Action Plan

Major Industrial, Oil, Consumer Stocks Headline Investing Action Plan

Here’s your Investing Action Plan for Friday: what you need to know as an investor for the coming day.

[ibd-display-video id=2381927 width=50 float=left autostart=true]The first full week of this earnings season closes out with several industrial players ( General Electric ( GE ), Honeywell ( HON )) and oil notables ( Schlumberger ( SLB ), Baker Hughes ( BHGE )) as well as consumer products giant Procter & Gamble ( PG ) and railroad name Kansas City Southern (KSU).

General Electric

The “digital industrial” company reports before the open.

Estimates : A 56% earnings boost to 50 cents a share on 9% sales growth to $31.92 billion, per Zacks Investment Research.

Stock : Shares were up 2% at 23.58 on the stock market today , amid reports that GE is planning thousands of layoffs. But shares are still well below their 50-day moving average , as they have been for most of this calendar year.

There’s some investor anxiety over GE’s industrial free cash flow and fears of a dividend cut. Read the full preview, below, for the details.


GE’s Expected Q3 Profit Surge May Be Overshadowed By Dividend Fears

IBD’S TAKE: By learning to use call options , investors can significantly reduce risk and capitalize on basing stocks that are making breakaway gains caused by earnings reports.


The industrial and aerospace heavyweight reports ahead of the opening bell.

Estimates : EPS to rise 5% to $1.75 as revenue notches up 2% to $9.96 billion.

Stock : Shares are in buy range after clearing a 140.31 entry point from a flat base in late September. The stock edged up 0.1% to 143.64 on Thursday.

Honeywell confirmed last week that it would split two noncore units into separate publicly traded companies by the end of 2018.


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The oilfield services provider also reports in the morning.

Estimates : Profit pops 68% to 42 cents a share as revenue grows 11% to $7.91 billion.

Stock : Shares fell 2.1% to 64.52 after breaching their 50-day line Thursday. The stock hasn’t touched its 200-day since April.

The number of oil rigs operating in the U.S. has been trending lower in recent months and domestic crude production has shown signs of stalling, but the price of oil has perked up. Watch for any guidance on industrywide exploration and production activity.

Baker Hughes

Baker Hughes, which merged with GE’s oil and gas business, reports before the open.

Estimates : EPS of 12 cents on revenue of $5.5 billion.

Stock : Shares were down 1.9% at 33.15, falling back below their 50-day on Oct. 10 after re-emerging above the key level for about a month.

This will be Baker Hughes’ first full quarterly report since the merger was completed in early July. Its Q2 report released in late July had pre-merger numbers.

Last week, reports surfaced that Baker Hughes was looking to resume buyout talks with construction and engineering services company Subsea 7.


Buyout Talks Between These Oil Sector Firms May Revive Amid M&A Wave

Procter & Gamble

The household and consumer products giant will issue its earnings release in the morning.

Estimates : Nearly 4% EPS growth to $1.07 on 0.7% sales growth to $16.64 billion.

Stock : Shares slid 1.3% to 91.59, falling out of buy range after clearing a 92.10 entry point from a flat base in early August. The stock began struggling to stay in buy territory late last month.

P&G eked out a win in a proxy fight against Trian Fund Management’s Nelson Peltz last week. Peltz, who is challenging the results, wants the company to spotlight innovation instead of legacy products.

Rival Unilever (UN) on Thursday reported Q3 sales that were weaker than expected , while Nestle (NSRGY) warned that restructuring costs would weigh on profit margins. Unilever tumbled 6.1% Thursday while Nestle dipped 0.3%.


Here’s The Latest Red Flag For Branded Consumer Goods

Kansas City Southern

The railroad company is set to post Q3 results before the market starts its day.

Estimates : Per-share earnings growth of 18% to $1.32 on a 7% revenue rise to $648 million.

Stock : Shares were down 0.4% at 102.34, with the stock undercutting the 50-day line last week, although Kansas City Southern is still up more than 20% so far this year.

Railroad peer CSX (CSX) met earnings estimates but fell short of revenue expectations when it reported Tuesday.


CSX Nears Buy Point But Autos Weigh On Q3 Volume

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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