3 Things Amazon Needs to Deliver on Thursday

Amazon.com (NASDAQ: AMZN  ) is set to report earnings after the market closes on Thursday. And with the stock near an all-time high, there is a lot riding on these results.

Here are three things the online retail giant needs to deliver if it wants to stay in Wall Street's good graces.

Trounced expectations
Amazon could start by beating sales and profit estimates. That won't be hard as far as earnings go. Analysts expect just $0.06 a share in profit this quarter after Amazon booked a tiny $7 million -- or $0.01 a share -- in the same quarter last year. Luckily for the retailer, investors haven't demanded earnings growth from the company. It has managed just $42 million in operating income in the last 12 months, a period over which the stock has added billions in market capitalization.

The bar is set much higher for sales growth, though. Amazon will need to boost revenue to at least $15.74 billion to meet expectations. That's about 23% higher than what it reported in the year-ago quarter. eBay, by comparison, managed just 12% sales growth in its online marketplace business over the second quarter.

Higher media sales
Notching a boost in digital content sales would help Amazon hit its higher target. CEO Jeff Bezos has made it clear that Amazon's tablet and e-reader strategy doesn't depend on profiting from the hardware, but instead aims to cash in on the sale of books and movies to those devices.

Investors haven't seen much evidence of that strategy working yet, though. Amazon's media sales growth slowed in the first quarter, to 7% from the 19% it reported a year before. With Barnes & Noble reporting a big drop in digital sales last month, and with Microsoft taking a hefty charge on its Surface RT tablets, Amazon will have to show how it can buck that trend and profit from its push into tablets and e-readers.

Lower costs
But the biggest hole in Amazon's business lately has been skyrocketing expenses. The company is boosting spending on everything from real estate to video content in an effort to compete in wildly different markets. And with the expansion of its same-day grocery business, Amazon risks spreading itself even thinner.

The company has made progress lowering its shipping costs, helping gross margin jump to 27% last quarter. That's proof that its investment in new warehouses and fulfillment centers was a smart one. Still, with operating expenses stuck near 100% of sales, Amazon needs to show similar progress in its other costly initiatives to justify the stock's premium valuation.

One of those initiatives is television, where new entrants like Amazon and Netflix are aiming to disrupt traditional networks. The Motley Fool's new free report "Who Will Own the Future of Television?" details the risks and opportunities in TV. Click here to read the full report!

Baidu Earnings Could Send Its Stock Soaring

Baidu (NASDAQ: BIDU  ) will release its quarterly report on Wednesday, and investors are hoping for a nice recovery to what's been a rough patch for the Chinese search giant. As competition has reared its ugly head for the first time in a while, shareholders have had to deal with the prospect of slower growth for Baidu earnings going forward.

Despite the competitive threats to its business, Baidu remains the dominant player in Chinese search, and even with overall growth in the Chinese economy slowing, there's plenty of room for the Internet space to keep getting more important to the emerging-market nation. Let's take an early look at what's been happening with Baidu over the past quarter and what we're likely to see in its report.

Stats on Baidu

Analyst EPS Estimate

$1.21

Change From Year-Ago EPS

(2.4%)

Revenue Estimate

$1.20 billion

Change From Year-Ago Revenue

39%

Earnings Beats in Past 4 Quarters

2

Source: Yahoo! Finance.

Will Baidu earnings give investors a nice surprise this quarter?
In recent months, analysts have gotten more pessimistic about the prospects for Baidu earnings, cutting their estimates for the June quarter by $0.13 and reducing their full-year 2013 and 2014 consensus by three to four times that figure. Yet the stock has rebounded from some substantial losses earlier in the year, bouncing more than 25% from its mid-April levels.

The causes of Baidu's woes earlier this year reveal just how high expectations are for the company. In its first quarter, Baidu grew its revenue by 40%, with profits rising 9%. But the stock fell sharply in response because those figures weren't enough to keep up with what analysts had projected, despite the fact that Baidu projected a big recovery in sales for the second quarter.

Most of the fears that investors have come from Baidu's rising competition. Traditionally, Baidu's partnership with SINA (NASDAQ: SINA  ) Weibo has given the search star useful social information to augment its services. But with rival Alibaba having taken an 18% stake in Weibo three months ago, that partnership could be in danger if Alibaba's use of Weibo information leads Baidu customers to advertise less. Meanwhile, the gains for Qihoo 360 (NYSE: QIHU  ) have continued, with the stock having almost quadrupled in the past year as the upstart company has achieved a 15.6% search market share. With its browser having about 25% market share, Qihoo's growth prospects might be slowing down, but the network effects could continue eating away at Baidu's leading position in the market.

To respond, Baidu has been working hard to get into the mobile space. Last week, the company announced a $1.9 billion bid for mobile-app marketplace company 91 Wireless. With 10 billion app downloads, 91 Wireless should help Baidu address the concerns that its desktop dominance hasn't translated to the mobile side of the business as much as investors would like.

In the Baidu earnings report, watch to see if the company can defy some analyst forecasts of much narrower profit margins resulting from Qihoo competition. The stock price shows that investors think Baidu can still win big if it can demonstrate its ability to grow despite the competitive threat, but the search giant will have a bigger fight on its hands than it has had to deal with in the past.

Meanwhile, back in the U.S., the tech world is also full of new competition, with a handful of companies seeking ways to climb above their peers. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Click here to add Baidu to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

3 Stocks Under $10 Moving Higher

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Mega-Cap Stocks to Trade for Gains

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Stocks With Big Insider Buying

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

U.S. Energy

U.S. Energy (USEG), an independent energy company, focuses on the acquisition and development of oil and gas producing properties and other mineral properties in the continental U.S. This stock closed up 4.2% to $4.47 a share in Thursday's trading session.

Thursday's Range: $4.28-$4.52

52-Week Range: $1.70-$5.08

Thursday's Volume: 311,000

Three-Month Average Volume: 221,011

From a technical perspective, USEG spiked sharply higher here right off its 50-day moving average of $4.29 with strong upside volume. This stock recently pulled back off its 52-week high of $5.08 to just below its 50-day and it has now started to rebound and spike higher. Market players should watch for a continuation move higher in the short-term if USEG manages to take out Thursday's high of $4.52 with strong upside volume flows.

Traders should now look for long-biased trades in USEG as long as it's trending above its 50-day moving average of $4.29 or above its recent low of $4.03 and then once it sustains a move or close above those $4.52 with volume that hits near or above 221,011 shares. If that move starts soon, then USEG will set up to re-test or possibly take out its next major overhead resistance levels at $5 to its 52-week high at $5.08. Any high-volume move above those levels will then give USEG a chance to tag $5.50 to $6.

Pernix Therapeutics

Pernix Therapeutics (PTX), a specialty pharmaceutical company, develops, manufactures, markets and sells branded and generic pharmaceutical products. This stock closed up 5.6% to $5.28 a share in Thursday's trading session.

Thursday's Range: $4.86-$5.63

52-Week Range: $1.68-$6.02

Thursday's Volume: 428,000

Three-Month Average Volume: 515,156

From a technical perspective, PTX spiked sharply higher here right above its 50-day moving average of $4.31 with decent upside volume. This move briefly pushed shares of PTX into breakout territory, since this stock flirted with some near-term overhead resistance at $5.58. Shares of PTX hit an intraday high of $5.64, before closing just below that level at $5.28. This spike higher on Thursday is starting to push shares of PTX within range of triggering a major breakout trade. That trade will hit if PTX manages to take out some key near-term overhead resistance levels at $5.70 to its 52-week high at $6.02 with high volume.

Traders should now look for long-biased trades in PTX as long as it's trending above some near-term support at $4.75 or above its 50-day at $4.31 and then once it sustains a move or close above those breakout levels with volume that hits near or above 515,156 shares. If that breakout kicks off soon, then PTX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $7 to around $7.50.

Body Central

Body Central (BODY) operates as a specialty retailer of young women's apparel and accessories in the South, Southwest, Mid-Atlantic and Midwest regions of the U.S. This stock closed up 9.7% to $1.13 a share in Thursday's trading session.

Thursday's Range: $1.03-$1.16

52-Week Range: $0.86-$13.39

Thursday's Volume: 835,000

Three-Month Average Volume: 709,124

From a technical perspective, BODY ripped sharply higher here right above some near-term support at $1 with above-average volume. This spike higher on Thursday pushed shares of BODY into breakout territory, since the stock took out and closed above some near-term overhead resistance at $1.08. Market players should now look for a continuation move to the upside in the short-term if BODY can manage to take out Thursday's high of $1.16 to more near-term overhead resistance at $1.20 with strong upside volume flows.

Traders should now look for long-biased trades in BODY as long as it's trending above Thursday's low of $1.03 or above more near-term support levels at $1 to 97 cents per share and then once it sustains a move or close above $1.16 to $1.20 with volume that hits near or above 709,124 shares. If that move gets underway soon, then BODY will set up to re-test or possibly take out its next major overhead resistance levels at $1.26 to $1.31. Any high-volume move above those levels will then give BODY a chance to re-fill some of its previous gap-down-day zone from March that stared just above $1.80. Shares of BODY could easily explode into that gap if we get a volume push soon, so targets above $1.80 would be $2 to $2.20.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>3 Hot Stocks on Traders' Radars



>>3 Stocks Spiking on Unusual Volume



>>QE5 Is Coming -- Here's What It Means to Your Portfolio

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


ChesapeakeĆ¢€™s Troubles Make It a Stock to Stay Away From

Chesapeake Energy (CHK), America's second-largest natural gas producer, has struggled with its numbers as the natural gas market had had a tough time of late. Chesapeake incurred a net loss of $159 million in the last reported quarter. It was, however, able to increase its revenue by 28% to $4.54 billion.

Tough Times

Nevertheless, the dynamics of the natural gas industry do not look very impressive. Therefore, this will affect the company's performance in the long run and lead to disappointment. Moreover, Chesapeake's daily production declined 3% in the last quarter as a result of reduction in well connections. Chesapeake has also terminated drilling rig contracts recently as it incurred heavy expenses due to severe weather conditions and other macroeconomic headwinds such as growing demand of shale gas that is affecting natural gas pricing, eventually leading to further loss of its market share.

Chesapeake is concentrating on various aspects of its business to get rid of these tough situations and has definite and concrete strategies to raise its cash through sale of assets that will assist the company to decrease its expenditure and boost its income. In addition, Chesapeake is planning to spin off the oil field service division and raise about $4.4 billion. Chesapeake is also focusing on discovering and developing natural gas and oil assets onshore in the U.S. through these spin-off strategies. This could perhaps turn the company to profitability in the long run.

Selling Assets

In addition, Chesapeake has also declared the sale of up to 437 natural gas units and related assets as natural gas pricing remains unfavorable due to rising demand of shale gas. The evolution of horizontal drilling and hydraulic fracturing over the past few years has allowed companies to tap shale gas at cheaper rates. This, on the contrary, has led to increased production of natural gas in the U.S., well above the growth in consumption that has affected its price ultimately.

However, Chesapeake has recently noticed significant increase in prices of natural gas abroad due to accelerated export demand. Hence, the company expects much better financial and operational performance in the current fiscal 2014. Further, exports are expected to play a key role in lifting natural gas prices in the U.S. despite surging supply from shale gas resources.

In addition to this, electricity demand is also expected to grow in the future, a positive sign for the company that will certainly help natural gas price to shoot up, because of the fact that natural gas has much lower carbon intensity compared to coal. This provides the company an attractive alternative fuel for new power generation plants because of relatively low capital costs and favorable heat rates. But, analysts expect the momentum in reduction of natural gas prices will continue in the future as well. Even Chesapeake feels the same pressure on the natural gas pricing that is supposed to decline in the future, therefore Chesapeake is focusing on asset sales to maintain profitability, or else it would be in dire straits.

But the company can take heart from the fact that natural gas is expected to remain the fastest growing global energy source until 2013, growing at a rate of 1.9%, regardless of current pricing. However, the shore-term prediction does not look promising as natural gas prices have declined in the past six to seven years.

Conclusion

Overall, the present scenario for Chesapeake is very complex. As a result, investors would be better off if they don't invest in the stock.

Currently 2.50/512345

Rating: 2.5/5 (2 votes)

Voters:
Email FeedsSubscribe via Email RSS FeedsSubscribe RSS Comments vgmVgm - 11 hours ago

Your view contrasts with that of Longleaf, as discussed in their latest Quarterly Report from last week. But I'd agree the current price level is not attractive entry point:

"Energy company Chesapeake retreated 5% in the quarter following a strong 2013. Short-term questions about production levels, the mix between gas and liquids, and additional asset sales pressured the stock. Our appraisal, however, grew slightly due to successful cost reductions. CEO Doug Lawler has made substantial progress since taking the helm last year, and we believe his capital discipline and operational effectiveness will reward shareholders."

(I am long CHK and optimistic for its 3-5 year future)

Please leave your comment:
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Advanced Micro Devices (AMD) Breaks an Earnings Loosing Streak (Plus Other Good News)

On the eve of Good Friday after the market had closed on Thursday, small cap chip stock Advanced Micro Devices, Inc (NYSE: AMD) did something unusual after its latest earnings report: It did not sink after its latest earnings reports. I should mention that we previously had an open position in Advanced Micro Devices in our SmallCap Network Elite Opportunity (SCN EO) portfolio from last summer up until late January when we locked in a small loss. We got out in part because while we believe in the company's potential over the long term, our SCN EO is a trading rather than a buy and hold portfolio plus AMD's shares sank yet again after the company reported earnings – a repeat of what happened after three previous earnings reports. However, the latest earnings report appears to have sent most of the bears (and many of the bashers who just hate this stock) into hibernation when you consider the following good news:

The AMD Earnings Report. On Thursday after the market closed, Advanced Micro Devices reported revenue of $1.40 billion for a 12% sequential decrease and a 28% year-over-year increase as sales at the company's solutions business (which supplies PCs) dropped 12% while the graphics and visual solutions unit's sales more than doubled to $734 million. In addition, AMD reported operating income of $49 million verses an operating loss of $98 million; non-GAAP operating income of $66 million verses an operating loss of $46 million; net loss of $20 million verses a net loss of $146 million; and a non-GAAP net income of $12 million verses a non-GAAP net loss of $94 million. Those results were better than analysts' expectations.

AMD an "Under the Radar" Transition Story. FBR Capital raised its price target on Advanced Micro Devices for to $6.00 from $5.50 and noted:

"We believe Advanced Micro Devices' 'under the radar' transition story is a key driver of value, although potentially messy. While structural PC headwinds are discouraging, we believe that AMD's non-PC segments will more than replace lost PC revenue over the next few years. Excluding another severe macro downturn, cash levels are now more than sufficient and net debt should be worked down for at least the next few years. In our view, the company has wisely directed its strategic focus away from the core PC market and toward gaming APUs, micro servers, and custom- embedded processors, areas its larger competitor is less focused on."

"Seeing Some Successes" in the Turnaround. Ascendiant Capital analyst Cody Acree was quoted in a Reuters article as saying:

"This is a company that's still in the midst of a very long-term turnaround but you're seeing some successes. None of this is a flip of a switch overnight. It's a plodding quarterly restructuring that really is going to change who AMD is."

Other Analysts Remain More Cautious. Not all analysts are excited about AMD's prospects as Nomura Equity Research's Romit Shah reiterated a Neutral rating along with a $4 price target and raised his 2014 estimates to $5.88 billion and 12 cents per share from a prior $5.67 billion and 6 cents per share. MKM Partners' Ian Ing also reiterated a Neutral rating and a $4.10 price target but he raised his 2014 estimates to $6.12 billion in revenue and 24 cents EPS from a prior $5.82 billion and 12 cents per share. Ing commented:

"We remain skeptical on ARM processors and micro-servers, and wary of potential PC share declines. Longer term AMD appears very much on track at building a sustained revenue stream of long-life designs (3-5 years or more) in adjacent computing areas. This could prove to be a better strategy than focusing on the highest volume PC and smartphone sockets with 9-12 month design cycles."

Bernstein Research's Stacy Rasgon reiterated an Underperform rating; but he raised his price target to $3 from $2.50 plus raised his 2014 estimate to $5.95 billion in revenue and 17 cents per share from a prior $5.72 billion and 6 cents per share. He also commented:

"We admit, we were wrong on the trajectory of AMD's revenue profile in Q2; and (at least for the moment) the collapse of PC revenues that we have seen in recent quarters stabilized a bit (with revenue declines about in-line with the market)."

Credit Suisse's John Pitzer reiterated an Underperform rating and a $3 price target, commenting:

"while we do recognize and commend that the Company is making progress, we will continue to stay on the sidelines until we have conviction relative to AMD's earnings upside potential… To be clear, AMD is making good progress in Computing Solutions segment with operating margins close to break-even at revenue levels that historically generated large losses – unfortunately, we see near-term profitability upside limited from current levels."

Pitzer raised his estimates for this year to $5.95 billion and 12 cent per share from a prior $5.66 billion and 8 cents per share.

Share Performance. On Tuesday, Advanced Micro Devices rose 4.37% to $4.30 (AMD has a 52 week trading range of $2.43 to $4.65 a share) for a market cap of $3.12 billion plus the stock is up 11.7% since the start of the year, up 74.1% over the past year and up 20.8% over the past five years. However, the following performance chart does show AMD's volatility:

Finally, here is a look at the latest technical chart for AMD:

Given the above news, it might be time for the AMD bears and bashers to find another stock to short (or bash….)

SmallCap Network Elite Opportunity (SCN EO) has an open position in AMD. To find out what other open positions SCN EO currently has, and to learn why so many traders and investors are relying on this premium subscription service, click here to find out more.

Mid-Morning Market Update: Markets Fall; Boeing Profit Tops Street View

Related BZSUM #PreMarket Primer: Wednesday, April 23: Data From China Takes Some Pressure Off Beijing Market Wrap For April 22: S&P Rises For Sixth Straight Day, Dow & Nasdaq Also Positive

Following the market opening Wednesday, the Dow traded down 0.13 percent to 16,492.37 while the NASDAQ tumbled 0.61 percent to 4,136.26. The S&P also fell, dropping 0.18 percent to 1,876.15.

Leading and Lagging Sectors
In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.61 percent. Top gainers in the sector included PPL (NYSE: PPL), Empresa Distribuidora y Comercializadora Norte SA (NYSE: EDN), and Public Service Enterprise Group (NYSE: PEG). Telecommunications services sector was the top decliner in the US market on Wednesday.

Top losers in the sector included China Unicom (Hong Kong) (NYSE: CHU), off 4.5 percent, and Black Box (NASDAQ: BBOX), down 3 percent.

Top Headline
The Boeing Company (NYSE: BA) reported better-than-expected first-quarter profit. Boeing's quarterly profit declined to $965 million, or $1.28 per share, from a year-ago profit of $1.11 billion, or $1.44 per share. Its adjusted earnings surged to $1.76 per share compared to $1.73 per share. Its revenue climbed to $20.47 billion versus $18.89 billion. However, analysts were projecting earnings of $1.57 per share on revenue of $20.24 billion. For the full year, Boeing expects adjusted earnings of $7.15 to $7.35 per share.

Equities Trading UP
Xoom (NASDAQ: XOOM) shares shot up 15.58 percent to $22.77 after the company reported upbeat Q1 results and issued a strong FY14 outlook.

Shares of Elizabeth Arden (NASDAQ: RDEN) got a boost, shooting up 9.95 percent to $31.27. LG Household & Healthcare is considering a bid for Elizabeth Arden, according to Reuters.

Super Micro Computer (NASDAQ: SMCI) shares were also up, gaining 11.50 percent to $21.13 after the company reported upbeat FQ3 results and issued a strong Q4 forecast.

Equities Trading DOWN
Shares of VMware (NYSE: VMW) were 9.93 percent to $94.71 after the company reported Q1 results. Vmware reported earnings of $0.80 per share on revenue of $1.36 billion.

Unisys (NYSE: UIS) shares tumbled 12.12 percent to $25.42 on Q1 results. Unisys reported a quarterly loss of $0.74 per share on revenue of $762.0 million.

Cree (NASDAQ: CREE) was down, falling 10.84 percent to $51.76 on Q3 results. Cree reported its Q3 earnings of $0.39 per share on revenue of $405.30 million. However, analysts were expecting earnings of $0.38 per share on revenue of $407.29 million.

Commodities
In commodity news, oil traded down 2.57 percent to $101.69, while gold traded down 0.38 percent to $1,283.70.

Silver traded up 0.18 percent Wednesday to $19.42, while copper rose 0.25 percent to $3.04.

Eurozone
European shares were mostly lower today.

The Spanish Ibex Index rose 0.07 percent, while Italy's FTSE MIB Index fell 0.42 percent.

Meanwhile, the German DAX dropped 0.41 percent and the French CAC 40 slipped 0.08 percent while U.K. shares declined 0.02 percent.

Economics
The MBA reported that its index of mortgage application activity declined 3.30% in the week ended April 18.

The preliminary reading of Markit PMI manufacturing index fell to 55.40 in April, versus a reading of 55.50 in March. However, economists were expecting a reading of 56.00.

Sales of new US homes dropped 14.5% to an annual rate of 384,000 in March. However, economists were projecting a sales rate of 450,000.

The Treasury is set to auction 5-year notes.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s Economics Intraday Update Markets Movers Tech

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Why Tupperware Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Tupperware and see what CAPS investors are saying about the stock right now.

Tupperware facts

Headquarters (Founded)

Orlando, Fla. (1996)

Market Cap

$4.2 billion

Industry

Housewares and specialties

Trailing-12-Month Revenue

$2.6 billion

Management

Chairman/CEO E.V. Goings
President/COO Simon Hemus

Return on Equity (Average, Past 3 Years)

34.4%

Cash / Debt

$147.4 million / $747.9 million

Dividend Yield

3.1%

Competitors

Alticor
Avon Products (NYSE: AVP  )
Newell Rubbermaid (NYSE: NWL  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 420 members who have rated Tupperware believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star joryko, succinctly summed up the bull case for our community:

With 61% of its sales coming from emerging markets, 24% of company revenues coming from its rapidly growing Beauty and Personal Care segment, and its continued payment of a 3% dividend, Tupperware offers quite a lot to investors.

However, the company's biggest weapon, and the reason I'm interested, is its INNOVATION.

25% of the company's sales come from products that were brought to market within the last 2 years. While this puts them at risk of having to continually innovate, I believe the opportunity of huge new products outweighs the risk of failing to create them.

With a slight decline in stock price from the slowdown in emerging markets, I was able to jump in on a great company at a fair price. 5+ years.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Tupperware may not be your top choice.

In fact, one home run investing opportunity has been slipping under Wall Street's radar for months. But it won't stay hidden much longer. Forward-thinking energy players such as General Electric and Ford have already plowed sizable amounts of research capital into this little-known stock, because they know it holds the key to the explosive profit power of the coming "no choice fuel revolution." Luckily, there's still time for you to get on board if you act quickly. All the details are inside an exclusive report from The Motley Fool. Click here for the full story!

Congress Asked to Approve $1.2 Billion Saudi Patrol Boat Sale

The Defense Security Cooperation Agency notified Congress (link opens a PDF) Tuesday of plans to sell the Saudi Arabian military a fleet of 30 armed, Mark V patrol boats.

The proposed sale, which includes spare parts, training services, logistical support, and 32 cannons firing 27mm rounds, is valued at a total price of $1.2 billion. No primary contractor has yet been identified for the sale, but small, privately owned boat-builders such as United States Marine, Halter Marine, and Hodgdon Yachts have been known to build such boats for U.S. and foreign buyers in the past. The Mark V is an aluminum boat also used by U.S. Navy SEALs.

The DSCA justifies the sale by noting that the "Mark V patrol boats will give the Royal Saudi Naval Forces (RSNF) an effective combat and threat deterrent capability to protect maritime infrastructure in the Saudi littorals. This acquisition will enhance the stability and security operations for boundaries and territorial areas encompassing the Saudi Arabian coastline [and] will enhance interoperability between the U.S. and the Kingdom of Saudi Arabia."

DSCA added that "there will be no adverse impact on U.S. defense readiness as a result of this proposed sale."

Gilead shares climb; AT&T, Amgen shares fall

SAN FRANCISCO (MarketWatch) — Gilead Sciences Inc., AT&T Inc. and Amgen Inc. were among the stocks actively trading Tuesday evening, with shares of Gilead climbing after handily beating Wall Street's quarterly earnings and revenue expectations and reporting a sales surge for its new hepatitis C treatment.

Bloomberg News Enlarge Image

Gilead Sciences (GILD)  reported late Tuesday that non-GAAP first-quarter net income, which excludes acquisition expenses and other one-off items, was $1.48 a share and said revenue reached $5 billion. The research-based biopharmaceutical company was expected to post quarterly earnings of 92 cents a share on revenue of $3.96 billion, according to FactSet consensus estimates.

Shares of Gilead climbed 2.3% Tuesday evening after a halt in after-hours trading. The company also said sales of its new treatment for hepatitis C soared in the first quarter, helping the biopharmaceutical company's bottom-line to triple.

AT&T (T)  saw an adjusted profit of 71 cents a share and said revenue grew 3.6% to $32.5 billion in the first quarter. That compared with analyst expectations for earnings of 70 cents a share and revenue of $32.4 billion. Shares of AT&T fell 1.9% in after-hours dealings.

The telecommunication giant also raised its revenue outlook for the year, projecting growth of 4% or more, versus its previous call for a 2% to 3% increase.

Earnings Wall Earnings Wall

Discuss key earnings announcements before and after results come in. Learn more

Comcast Earnings Get a Boost from Sochi Olympics

Earns Comcast Gene J. Puskar/AP PHILADELPHIA -- Comcast said Tuesday that its first-quarter net income rose by 30 percent as ad revenue surged at broadcast network NBC, helped by the Winter Olympics in Sochi and Jimmy Fallon's elevation as host of "The Tonight Show." The results beat Wall Street estimates and its shares edged up in morning trading. Comcast (CMCSA) is the largest cable company in the country with 22 million video customers and 21.1 Internet customers. It is in the midst of an expected yearlong review of its $45 billion acquisition of No. 2 rival Time Warner Cable (TWC). Regulators are examining whether the combination would give it undue pricing power over customers and too much leverage with programmers. Its net income in the quarter through March rose to $1.87 billion, or 71 cents a share, from $1.44 billion, or 54 cents a share a year ago. Excluding one-time items, adjusted earnings came to 68 cents a share, beating the 64 cents expected by analysts polled by FactSet. Revenue grew 14 percent to $17.41 billion from $15.31 billion. That's also higher than the $16.99 billion expected by analysts. NBCUniversal revenue grew 29 percent to $6.88 billion while cable services revenue grew 5 percent to $10.76 billion. Olympics broadcast rights boosted NBCU revenue by $1.1 billion. Even excluding the games, broadcast revenue rose 17 percent, helped by Fallon's selection for NBC's late night slot, replacing longtime host Jay Leno. The network was also boosted by more hours of "The Voice" and the popularity of new shows like "The Blacklist." On the cable connections side, Comcast added 24,000 video customers during the quarter, the second quarterly gain in a row following a six-and-a-half year losing streak. However, those gains are likely to come to an end in the current quarter as college students disconnect service at the end of the semester. Comcast added 383,000 high-speed data customers and 142,000 voice customers. The company says the roll-out of its newest X1 set-top box is starting to contribute to better video results. It is now setting up 15,000 to 20,000 boxes a day, up from 10,000 at the end of the year. An improved user interface is helping reduce customer disconnects while boosting video-on-demand spending and increasing uptake of digital video recorder service. Within three years, Comcast hopes the majority of its customers will have X1. Comcast shares rose $1.03, or 2.1 percent, to $50.91 in morning trading. Its shares have fallen 4 percent in regular trading so far this year.

Why Equity Residential Is Poised to Underperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, multifamily property REIT Equity Residential (NYSE: EQR  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Equity Residential and see what CAPS investors are saying about the stock right now.

Equity Residential facts

Headquarters (founded)

Chicago (1966)

Market Cap

$20.7 billion

Industry

Residential REIT

Trailing-12-Month Revenue

$2.2 billion

Management

Founder / Chairman Samuel Zell
CEO David Neithercut

Return on Equity (average, past 3 years)

0.5%

Cash / Debt

$56.1 million / $12.2 billion

Dividend Yield

2.8%

Competitors

Apartment Investment & Management Co. 
UDR 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 44% of the 257 members who have rated Equity Residential believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, DCUDFlyer, wrote that the Equity Residential bear case all boiled down to price:

I actually live in an EQR managed complex, and it's very nice ... no complaints. In fact, upon moving in the leasing agent informed me they were at 98% occupancy rate. Very good for such a larger complex. However ... the stock EQR is far from attractive at this point. PE>100? Dividend yielding below 3? I don't see enough growth opportunity here to justify an "Outperform" rating. While focusing on strong real estate markets with stable job growth sounds like the right thing, is there enough upside to choose this over the broad market? I just don't see it.

While you can certainly make quick gains in speculative turnaround plays, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Dow Futures Soar Ahead of Payroll Data

LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open up by 1.22% this morning, while the S&P 500 (SNPINDEX: ^GSPC  ) may open 0.8% higher. CNN's Fear & Greed Index has returned to "fear" territory and is poised to start the day at 31, up from Wednesday's close of 25.

After yesterday's strong gains, European markets were more cautious this morning ahead of today's nonfarm payrolls report. Financial and consumer goods stocks were among the biggest gainers. As of 7:50 a.m. EDT, the FTSE 100 is up 0.31%, the DAX is down 0.22%, and France's CAC 40 is down 0.31%. German markets edged lower after new data showed that industrial orders fell by 1.3% in May, driven by a 2% fall in domestic demand, while coalition government negotiations continue in Portugal after the recent resignation of two senior ministers. In Greece, negotiations continue between the government and International Monetary Fund officials regarding the conditions required for Greece to receive its next bailout payment. In Asia, most markets closed higher this morning, with Japan's Nikkei 225 posting a 2.1% gain and the Hong Kong Hang Seng Index closing up by 1.9%.

Today's U.S. trading is likely to be dominated by the nonfarm payrolls report, which is due at 8:30 a.m. EDT. Consensus forecasts suggest that about 155,000 new jobs may have been created in June, compared to 175,000 in May, which would leave the unemployment rate down slightly to 7.5% from 7.6% in May. U.S. investors returning to work after yesterday's holiday may also be encouraged by yesterday's comments from European Central Bank President Mario Draghi, who said low interest rates were likely to continue for an "extended period" -- a comment which helped the FTSE 100 close up by more than 3% yesterday.

Corporate news is thin today, although defense contractor GenCorp is due to update the markets during the day. However, several major stocks have advanced strongly during premarket trading, including Tesla, which is up 2.3%. Citigroup, JPMorgan Chase, and Bank of America are all more than 1% higher in early trading, while Genuine Parts Company has edged higher.

Finally, let's not forget that the Dow's daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, "The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions." If you, like Buffett, are convinced of the long-term power of the Dow, you should read "5 Stocks To Retire On." Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

Why Trulia (TRLA) Stock Is Up Today

NEW YORK (TheStreet) -- Trulia (TRLA) was gaining 9.2% to $34.82 Monday after signing a direct data license with My Florida Regional MLS.

The deal will let brokers directly syndicate their listings to the Trulia service. My Florida Regional MLS is one of the top five largest MLSs in the U.S., and powers more than 100,000 listings.

"By entering into a direct license agreement, MFRMLS is ensuring the integrity of their brokers' listings and creating transparency with Trulia," Trulia vice president of Industry Services Alon Chaver said in a press release. "Brokers choosing to send their listings direct to Trulia no longer need to worry about having to update information and can focus on engaging consumers and supporting their agents in converting consumer inquiries into closed transactions."

Must read: Warren Buffett's 10 Favorite Growth Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates TRULIA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate TRULIA INC (TRLA) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows: TRLA's very impressive revenue growth greatly exceeded the industry average of 11.7%. Since the same quarter one year prior, revenues leaped by 141.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Net operating cash flow has significantly increased by 143.58% to $4.39 million when compared to the same quarter last year. In addition, TRULIA INC has also vastly surpassed the industry average cash flow growth rate of 22.18%. TRLA's debt-to-equity ratio of 0.60 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 6.55 is very high and demonstrates very strong liquidity. The share price of TRULIA INC has not done very well: it is down 5.11% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 600.2% when compared to the same quarter one year ago, falling from -$1.59 million to -$11.15 million. You can view the full analysis from the report here: TRLA Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: TRLA 

"World War Z" and the Billion-Dollar Business of Zombies

Viacom (NASDAQ: VIAB  ) needs to send a fruit basket to Brad Pitt and his production company, Plan B Entertainment. Viacom's Paramount studio was in desperate need of a big summer hit, and Pitt's zombie romp, World War Z, is delivering in spades.

World War Z is riding a global zombie trend right now, and it's a powerful one. Will the trend stay warm-blooded long enough to fuel a series of Z sequels, or is the fad already as dead as its anti-heroes? Let's think about it together.

The numbers around this title are amazing. World War Z delivered a $66 million domestic opening weekend, is competing for eyeballs and dollars with a strong second weekend, is likely to top $200 million in global box office receipts by Monday, and should land north of $300 million globally when all is said and done. That is, before reaping further rewards from TV and online syndication, lunch boxes, the usual extras.

The first zombie encountered in George Romero's 1968 genre classic, Night of the Living Dead. His brood is still hunting for brains and box-office dollars. They just have more impressive makeup.

To no one's surprise, Pitt and Viacom are already looking at sequels. The film was meant to kick off a trilogy before the ending was drastically changed. Given that it's based on the rich world of the best-seller book of the same name, and really didn't tap anything but the name from the book in the first installment, there's plenty of material to explore.

In fact, it would be ridiculous not to go down that road. The zombie genre is littered with long strings of sequels and remakes -- and World War Z is already one of the biggest box office hits in zombie history, just two weeks into the release. Check out the top six zombie movies of all time in terms of American ticket sales:

Title

Opening Weekend

Final Domestic Gross

Final Global Gross

Production Budget

Hotel Transylvania

$43

$148

$347

$85

World War Z***

$66

$125*

$300**

$190

Zombieland

$25

$76

$102

$24

Warm Bodies

$20

$66

$117

$35

Resident Evil: Afterlife

$27

$60

$296

$60

Evil Dead (2013)***

$26

$54

$97

$17

Data from Box Office Mojo and Deadline Hollywood Daily. All figures in millions of U.S. dollars.
*Estimates for first 2 weeks.
**Author's estimated final tally.
*** Still in theaters.

That's right -- World War Z is already the second-biggest money maker among zombie movies in Hollywood history. Hotel Transylvania had the advantage of being an animated kids' movie with a humble PG rating.

The list above looks like a motley collection. You've got cartoons and comedies, pulse-pounding action and hardcore horror. Some are well made, others an empty collection of special effects without heart. Sony (NYSE: SNE  ) is a big winner in the zombie space, having placed four titles on this top-six list, but Paramount and Lionsgate (NYSE: LGF  ) are riding the wave too. For Paramount/Viacom, World War Z could kick-start a franchise that makes the first movie's big budget worth its salt. For Summit/Lionsgate, zombies seem like a natural fit after the fantastic success of its vampire romance franchise, the Twilight saga.

But the films above have one very important thing in common, apart from being very successful zombie titles. They were all produced in the past four years.

Add in the award-winning success of AMC Networks' (NASDAQ: AMCX  ) The Walking Dead cable TV show, and you have a full-blown cultural trend on your hands. It's been around for at least four years and is still producing bigger and bigger winners. That's a good sign for its lasting power.

I think it's fair to use The Walking Dead as a bellwether for the overall zombie zeitgeist. Right now, the series is as hot as ever. The Season 3 finale broke all-time cable show records with a fantastic 15.2 million viewers. And it wasn't a single episode of fleeting glory: That third season was the first cable show in television history to beat the average viewership of every other show, including the cable-free networks ABC, CBS, NBC, and Fox.

So if the zombie fad is dead, it sure doesn't act like it yet. And who's to say that it will fall down after a short run? Look at Walt Disney's (NYSE: DIS  ) Marvel milking the superhero genre ever since the 2002 Spider-Man tentpole (coincidentally directed by horror legend Sam Raimi), which started a decade-long trend of superhuman heroes making billion-dollar movies. A positive template to follow, for sure.

And keep in mind that showrunners and studios are treating zombies as if they have legs (and teeth). World War Z might start a franchise. Rumor has it that the Evil Dead reboot could spawn a trilogy of its own, giving Sony access to an intentionally low-budget franchise with big-ticket revenue magnetism. Indie producers are shopping around a plethora of zombie ideas, sometimes with dramatic twists on the basic "living dead" premise.

In short, I think it's safe to say that zombies are here to stay for a while. Certainly long enough to let Viacom spawn a series of blockbuster World War Z sequels while Sony delves even deeper into the dark realms. Again, keep a close eye on The Walking Dead to keep your finger on this trend's pulse.

But be careful. I don't trust the shifty-eyed corpse in the corner. He looks hungry.

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