Piyush Arora
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This Grocer Could Continue To Outperform
By Piyush Arora - April 19, 2013 | Tickers: SWY, KR, WFM
The general thesis is that grocery stores have steady revenues and consistent profits because “people need to consume.” But, shares of Kroger (NYSE: KR) have risen by around 45% over the last year, yet its shares appear to be undervalued. Naturally, one may question the overly optimistic estimates and conclude that the deal is too good to be true. Yet, here are a few reasons why Kroger appears to be more »
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Are You Prepared This Time?
By Piyush Arora - April 19, 2013 | Tickers: AGCO, CNH, DE
Editor's Note: This version has been modified to address CNH Global's price appreciation.
Last year’s drought brought upon a massive destruction of crop yield, which sent crop prices to 6 year highs. This year is turning no different, as the weather reports suggest that last year’s drought may very well continue in 2013. This would certainly send fertilizer companies soaring, but agricultural equipment providers like Deere more »
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Buy This Healthcare Outperformer
By Piyush Arora - April 19, 2013 | Tickers: BAX, BDX, BCR
The healthcare industry is known to have a stable topline and usually attracts income growth investors. But over the last year, shares of Baxter International (NYSE: BAX) and Becton, Dickinson & Co. (NYSE: BDX) have risen by nearly 25% and 26%, respectively. These companies have not only outperformed their peers, but also carry a solid yield. But despite the recent rally, I think the healthcare industry is still ripe for value more »
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What to Expect of Apple?
By Piyush Arora - April 18, 2013 | Tickers: AAPL, INTC, SSNLF
Over the last 6 months, shares of Apple (NASDAQ: AAPL) have crashed, and investing in the company has become a topic for heated discussions. The legendary Buffett says, “Be fearful when others are greedy and greedy when others are fearful,” but its shares have failed to find a bottom and many have lost trying to find one.
Growth from ultrabooks
Apple has been known for its innovation and the premium more »
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A Great Way To Play Industrial Recovery
By Piyush Arora - April 18, 2013 | Tickers: AA, CENX, RIO
Since the crash of 08-09, shares of Alcoa Inc. (NYSE: AA)have plummeted by over 80% while aluminum prices in the U.S have plunged by nearly 45%. Its shares have underperformed almost all the major indices in the U.S, which leaves little interest for growth investors. But with the recovering infrastructure and automobile sectors in the U.S, China and India, aluminum is again gaining traction. Since Alcoa more »
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Finding Tremendous Growth Opportunities in Banking
By Piyush Arora - April 17, 2013 | Tickers: GS, HDB, IBN, JPM, WFC
Even after the political mess in India, Citibank estimates that its GDP will grow by 6.1% in 2013. That may be slower than China’s estimated growth rate, but is still impressive for the world’s third largest economy. India is by far the largest importer of gold (967 tonnes in 2011), and the yellow metal has been one of the main culprits behind its depreciating currency (and worsening more »
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This Grocer Could Continue to Outperform
By Piyush Arora - April 16, 2013 | Tickers: SWY, KR, WFM
The general thesis is that grocery stores have steady revenues and consistent profits, because “people need to consume.” But shares of Kroger Co. (NYSE: KR) have risen by around 45% over the last year, yet its shares appear to be undervalued. Naturally, one may question the overly optimistic estimates and conclude that the deal is “too good to be true”. But here are a few reasons why Kroger Co. appears more »
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How to Play the Iron Ore Shortage
By Piyush Arora - April 16, 2013 | Tickers: MT, BHP, RIO, SLT
India is the third largest exporter of iron ore in the world, and any disruption in its supply affects international iron ore prices. But due to the political mess in the country, the Supreme Court of India imposed a ban on the operations of over 200 mines in Goa last year. This was followed by bans in Indian states of Karnataka and Orissa, which altogether account for more than 90 more »
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Is This Stock Poised for an Upside?
By Piyush Arora - April 16, 2013 | Tickers: AMD, INTC, NVDA, QCOM
Intel (NASDAQ: INTC) has been ahead in computing performance lately, but its relatively weaker integrated graphics have left consumers wanting for more. Advanced Micro Devices' (NYSE: AMD) Trinity platform did give ample graphics processing power, but the trade-off was lower processing power. However, a lot has happened over the last year, and both Intel and AMD are looking to shake things up.
Ultrabook growth
AMD recently refreshed its Trinity lineup more »
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A Sustainable High Yielding Electric Utility for Keeps
By Piyush Arora - April 16, 2013 | Tickers: DUK, NEE, SO
With the looming European sovereign debt crisis and lower than estimated job creation, finding growth picks has become difficult. To hedge the risks of macroeconomic uncertainty, owning income growth stocks has always been advisable. But, investors should analyze the sustainability of payouts before making investments. The company in focus is Duke Energy (NYSE: DUK), and here are a couple of reasons why it would make a good income growth play more »
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This Beverage Could Pop Soon
By Piyush Arora - April 16, 2013 | Tickers: KO, MNST, PEP |
It’s hard to replace products that people love to consume. Even if those products are not healthy, people tend to reduce their intake but seldom do they completely abstain from them. No, I’m not talking about tobacco or alcohol. Its carbonated beverages that are in focus and the question being asked is, whether the rally of PepsiCo (NYSE: PEP) and Coca-Cola (NYSE: KO) sustainable or not.
A soda more »
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This Company Could Continue to Outperform
By Piyush Arora - April 15, 2013 | Tickers: BHI, HAL, SLB
The Middle East has been catering to the global crude oil demand for a long time, but the recent political standoffs have negatively impacted its supply. As a result, Brent crude is above the $110 mark and the shortage in oil supply has rapidly fueled oil exploration and production activities. According to a recent report, global oil demand is expected to increase by 6-8% annually and exploring for new reserves more »
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This Company Could Continue to Outperform
By Piyush Arora - April 15, 2013 | Tickers: BHI, HAL, SLB
The Middle East has been catering to the global crude oil demand for a long time, but the recent political standoffs have negatively impacted its supply. As a result, Brent crude is above the $110 mark and the shortage in oil supply has rapidly fueled oil exploration and production activities. According to a recent report, global oil demand is expected to increase by 6-8% annually and exploring for new reserves more »
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Railroads: A Value Pick and a Growth Pick for Keeps
By Piyush Arora - April 15, 2013 | Tickers: CNI, CP, NSC
For a long time, the future of railroad companies has been tied down to coal demand in the U.S. But, the shale gas boom in North America has presented natural gas as a cheap and eco-friendly alternative for coal. Although coal demand in the U.S is slumping, developing countries like India and China are rapidly moving towards coal gasification plants, and their coal requirement is increasing faster than more »
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3 Reasons to Buy This Auto Retailer
By Piyush Arora - April 15, 2013 | Tickers: AN, KMX, PAG
Auto sales in the U.S. are approaching their six year highs, and automobile manufacturers are finally breathing a sigh of relief. Thanks to the low interest rate environment and increasing personal disposable income in the economy, auto recovery seems genuine with robust growth prospects for 2013. To play the recovery, investors can invest in automobile or tire manufacturers, but both the industries involve significant operational risks.
But, auto retailers more »
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Forget Growth Prospects, These Companies Won't Make a Dime in India
By Piyush Arora - April 12, 2013 | Tickers: AMZN, JCP, M
Leaving aside the political mess, India is still considered as a possible breakout nation with many pending economic reforms and a 6.1% growth estimate. Thanks to the FDI bill (foreign direct investment) passed last year, foreign companies can own up to 49% stake in an India-based business. This reform not only allows foreign brands to enter India, but also eliminates the need for external commercial borrowings and reduces the more »
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Hunting for a Value Play
By Piyush Arora - April 12, 2013 | Tickers: MCD, SBUX, YUM
Food companies are generally known for having stable bottom lines and for delivering steady growth over the years. But over the last year, shares of Yum! Brands (NYSE: YUM) have shown extreme volatility while the company's market share and profits took a nosedive.
Although its shares have recovered and the fast-food giant's losses weren’t as deep as estimated, its turnaround story is still speculative in nature, which more »
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These 3 Luxury Stocks Are Worth a Look
By Piyush Arora - April 12, 2013 | Tickers: LUX, SIG, TIF
The unemployment rate is consistently dipping as the Fed continues to pump $85 billion of liquidity every month. This has increased personal disposable income, which in turn has bolstered consumer confidence.
It’s a well-known fact that with increased liquidity in the economy, retailers perform well, and with increased consumer confidence, real estate and luxury companies also get a boost. With this investment thesis, luxury retailer Tiffany (NYSE: TIF) seems more »
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This LED Manufacturer Seems Well Poised To Rally
By Piyush Arora - April 12, 2013 | Tickers: CREE, PHG, SI
It’s hard to dislodge companies that become synonymous to a product itself. In this case, if I talk about LED lights, the first thing to pop up would be Cree (NASDAQ: CREE). The company has not only captured the LED lighting market, but is also the leading innovator in the industry. Although LED penetration is still less than 15%, shares of Cree have more than doubled in value over more »
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A Value Play in the Telecom Sector
By Piyush Arora - April 11, 2013 | Tickers: T, CTL, WIN
More often than not, companies carry out share repurchases to either revive their distressed share prices or to artificially boost their EPS when there isn’t much room to grow. But certain well-performing companies repurchase their shares to reduce their dividend burden or due to a board’s faith and confidence in the company’s future. AT&T (NYSE: T) is one such company, and here are a couple of more »