Barron's summary: Positive on AMZN, TCO, ESL; Cautious on ATHN, WWE, QCOM
Cover story: In the latest Barrons Big Money poll, a record 50% of respondents say they are neutral about the stock markets prospects through year-end, the highest such reading since spring 2005, and a sharp increase from last falls 31%.
Tech Trader: Positive on AMZN: Amazon Web Services division turns out to be very profitable, making up 7% of revenue but 37% of profit; companys decision to release financial information about it should ease Wall Street concerns.
Trader: A strong Nasdaq and decent earnings reports could be the catalyst that lifts the broader market out of its rut, says Brad McMillan of Commonwealth Financial; Cautious on ATHN: Though shares have tumbled 16% this year, they remain richly valued and further weakness is possible as company faces an increasingly competitive and even saturated market; Cautious on WWE: Total subscriptions continue to rise, but the day rate of new subscribers has plummeted after the initial burst in 2014, and shares could head lower if growth falls short of expectations.
Features: 1) Cautious on QCOM: Jana Partners call for a restructuring--including cutting R&D costs, buying back shares, and splitting off chipset business--could lift shares to about $90, but a spinoff would complicate intellectual property issues; 2) Positive on Anglo American: After years of poor performance, mining group is improving cost controls, boosting operating efficiency, and selling underperforming assets, which could send shares up 20% during the next year; 3) Positive on TCO: Firm trades at the widest discount to estimated net asset value of any major mall-focused real estate investment trust, but that gap could soon close as new malls in development come on-line.
Small Caps: Positive on ESL: Major changes are under way at airline, which has been restructuring to become a leaner more cohesive company, and changes could benefit investors as soon as next year.
Profile: Disque Deane Jr., Matt Diserio, and Marc Robert of Water Asset Management, which seems assured of continued upside as the urgency of global water needs grows (picks: Suez Environnement, Aqua America, Northwest Pipe; pans: Sabesp, Copasa).
Interview: Bill Priest and David Pearl, co-chief investment officers, Epoch Investment Partners, who focus on shareholder yield, or the way companies allocate capital (Pearls picks: HXL, MSFT, MS; Priests picks: Accor, Airbus Group, WPP).
Follow-Up: Positive on CMCSA: Shareholders should be happy about scuttled TWC merger, since it opens up the possibility for buybacks or smaller deals that would be more beneficial; Positive on HD: Company has rallied since just more than a year ago, but its run doesnt seem to be over yet, and it should continue to benefit from a mild resurgence in new construction and higher spending on remodeling.
European Trader: Upcoming U.K. elections are among the most unpredictable in history and the results are likely to have ramifications across Britain, the EU, and markets; A conservative win would benefit St. James Place and Prudential, while BT Group should do well regardless because both parties recognize the importance of advanced 4G and fiber infrastructure.
Asian Trader: Pakistans prospects look brighter today than they have in a long time, and are now similar to those of India, though investing there isnt for the faint-hearted.
Emerging Markets: Negative on PBR: Shares of troubled Brazilian oil major have made gains, making the stock pretty fully valued in light of the potential for more problems--and investors should steer clear.
Commodities: Iron ore prices, which have recently steadied at around $50 a metric ton, are expected to continue to slide as supplies keep piling up.
Streetwise: Positive on AFL, CMI, ORCL: Shares are among those on the Standard & Poors High Quality Index that are cheap, high-quality, and high-beta, with stable earnings, strong balance sheets, and sustainable dividends.