Twilio (TWLO: $26)
Bull Market Report Target Price: $47
Bull Market Report Sell Price: $29
Earnings Date: Tuesday, 5:00 PM ET
Consensus: 4Q17
Revenues: $103 million
EPS: -$0.06
Year Ago Quarter Results
Revenues: $82 million
EPS: $0.00
Key Things to Watch For in the Quarter
Analysts expect Twilio to report a 25% increase in revenues with a small earnings deficit for 4Q17. Despite beating analyst estimates in each of the past four quarters, the stock is down 25% since this time last year. We believe this sell-off has provided investors with an even better opportunity for entry as we are still very confident in the firm’s ability to provide value to both its customers and its shareholders.
We are continuing to be very patient with this company as it continues to grow revenues in the 25% range. We are lowering our Target from $72 to $47, a double from where it is now. We still think it is possible for the stock to hit this number this year. And the Sell Price of $29 is above where the stock is. This price is here for you to decide what to do. We're sticking with Twilio. We're going to be right in the end. Big time.
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Omega Healthcare Investors (OHI: $26)
Bull Market Report Target Price: $45
Bull Market Report Sell Price: $28
Earnings Date: Tuesday, After market close
Consensus: 4Q17
Revenues: $223 million
EPS: $0.42
Year Ago Quarter Results
Revenues: $195 million
EPS: $0.63
Key Things to Watch For in the Quarter
Omega is expected to report a 14% increase in revenues and a 33% decrease in earnings per share for 4Q17. The stock currently trades down 17% since this time last year, which was partly caused by the firm’s inability to beat analyst estimates in two of the past four quarters. Omega trades at a PE of 34 and has a 10% dividend yield making it one of the more attractive stocks in our REIT portfolio. The economy continues to hold strong, and we expect that a firm with management like Omega will be able to turn around its performance in 2018.
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Annaly Capital Management (NLY: $10.30)
Bull Market Report Target Price: $12
Bull Market Report Sell Price: $11
Earnings Date: Wednesday, After market close
Consensus: 4Q17
Revenues: $675 million
EPS: $0.29
Year Ago Quarter Results
Revenues: $805 million
EPS: $0.30
Key Things to Watch For in the Quarter
Analysts expect Annaly to report a 16% decrease in revenues and a 3% decrease in earnings per share for 4Q17. The stock is down 5% over the past year. Although analysts are predicting a slowdown in the growth and earnings of the firm, we still believe the stock is undervalued. The stock yields 11.7% which is a great return in this volatile market.
The stock is down from its highs in August and then again in December, as the volatile interest rates have taken their toll. But we are strong believers in the ability for management to weather any move in the interest rate environment. In fact, at this lower price, we only see the stock moving higher from here this year.
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Andeavor (ANDV: $98)
Bull Market Report Target Price: $120
Bull Market Report Sell Price: $95
Earnings Date: Friday, 8:30 AM ET
Consensus: 4Q17
Revenues: $11 billion
EPS: $1.13
Year Ago Quarter Results
Revenues: $6.5 billion
EPS: $0.03
Key Things to Watch For in the Quarter
Andeavor is expected to report a 70% increase in its revenues and a $1.10 increase in earnings per share for 4Q17, after a very poor earnings quarter last year. The stock has beaten estimates in three of the past four quarters and is trading up 10% over the past year. 2018 has been a rough year thus far for Andeavor, as the stock has fallen 19% since the beginning of the year. However, we see this as a great entry point especially ahead of earnings on Friday, as we believe the firm is poised to beat estimates and regain some of its losses from this year.