In an Expensive Market Stick with Leading Aristocrat Stocks

In an Expensive Market Stick with Leading Aristocrat Stocks

In an Expensive Market Stick with Leading Aristocrat Stocks


Caterpillar (NYSE:CAT): After years of weak earnings growth, this big cap leader is leading. Caterpillar is the largest manufacturer and marketer of construction equipment worldwide, it is also a leading manufacturer of diesel engines and turbines for transport and industrial applications.

Industry analysts see scope for the earnings estimates to go higher, and Merrill has raised their Y’s 2017 and 2018 earnings estimates 5%, which is 12% higher than the current Street estimates noting that the company’s largest public dealers are reporting strong orders.

Shareholders are paid a solid 2.96% dividend. The Merrill price objective is 120, and the Street consensus target price is 106.69. The shares finished Friday at 105.40.

HeffX-LTN Analysis for CAT: Overall Short Intermediate Long
Very Bullish (0.50) Bullish (0.38) Very Bullish (0.57) Very Bullish (0.56)


CSX (NYSE:CSX): This is one of the Top railroad stocks and is a Top Idea for investors looking to the transports. CSX Corp. provides rail freight transportation over a network of approximately 21,000 route miles and 36 terminals and 57 inter-modal terminals across the Eastern half of the United States. It controls 4,071 locomotives and 216,000 rail cars on its network, and it has nearly 30,000 employees.

Hunter Harrison, the new CEO of CSX, recently bought a 300,000-share block of the company’s stock at a reported share price of 50.20. The posted total for the buy was a sizable $15-M. The Top man making a big purchase is about as Bullish a statement for the company and shareholders that can be made.

Shareholders receive a 1.53% dividend. The Merrill price target is 56, and the consensus target is 56.67. The shares finished Friday at 53.96.

HeffX-LTN Analysis for CSX: Overall Short Intermediate Long
Very Bullish (0.53) Very Bullish (0.52) Bullish (0.42) Very Bullish (0.64)


Marriott International (NYSE:MAR) is still digesting the Starwood purchase, but the analysts are very positive on the deal going forward. Marriott International is a global lodging company with over 6,000 properties and 1.2-M rooms in its system. The company has 30 brands in the limited service segment: Courtyard, Residence Inn, TownePlace Suites, Fairfield Inn, SpringHill Suites and full service segment: Marriott, JW Marriott, Ritz-Carlton, Renaissance, Bulgari, W Hotels, St. Regis.

Merrill’s analysts recently met with the company’s CFO, and report that management noted that the current operating environment is stable, and that online companies with websites that allow consumers to book various travel related services directly and loyalty programs are becoming an increasing focus area.

Marriott shareholders are paid a 1.25% dividend. Merrill has a 112 price target. The consensus target is 103.65, and shares traded on Friday at 106.90.

HeffX-LTN Analysis for MAR: Overall Short Intermediate Long
Very Bullish (0.51) Very Bullish (0.69) Bullish (0.46) Bullish (0.38


Tiffany (NYSE:TIF) has benefited big time from the wealth effect of the rising stock market. Tiffany is a specialty retailer selling jewelry, fine watches, leather goods, crystal, china, silverware and accessories. The company sells primarily through its retail stores and the internet. The Tiffany brand is associated with a luxury offerings and is well-known worldwide.

The company posted solid earnings, and the Merrill analysts said this in the report: Management reiterated its FY 2017 outlook for a low single digit increase in global sales and mid single digit earnings-per-share growth, implying $3.90-3.97. Price increases, a faster pace of innovation, and the wealth effect of a rising stock market should drive positive 2-H Y 2017 comps.”

Shareholders are paid a 2.11 dividend. The 110 Merrill price target compares with the consensus target of 94.72. The shares finished Friday at 86.18.

HeffX-LTN Analysis for TIF: Overall Short Intermediate Long
Bearish (-0.30) Neutral (-0.15) Bearish (-0.40) Bearish (-0.36)

Have a terrific week.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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