As telecommunications giant AT&T (T) gets ready to report its quarterly results after the bell Thursday, Trifecta Stocks portfolio managers see the stock as a "safer harbor" as earnings season continues.
Portfolio managers Chris Versace and Bob Lang said in a note to subscribers that AT&T is expected to deliver earnings of $0.72 per share on revenue of $40.63 billion, which is an increase on earnings of $0.69 per share on revenue of $33.02 billion from a year prior.
Versace and Lang noted that as Yahoo's bidding results will likely not be revealed until next week, they do not expect the company to discuss what it would do with Yahoo's core assets should it win the bid. Furthermore, the porfolio managers said they "would prefer AT&T be a disciplined bidder -- given the performance of Yahoo's core business over the last several quarters." They also said they would prefer AT&T to spend more on 5G spectrum over Yahoo because that will be a core asset for the company's mobile data business.
Versace and Lang said they will continue to hold the shares, collecting the 4.5% annual dividend yield along the way. The stock closed at $42.71 Wednesday.
Meanwhile, Action Alerts PLUS is cashing out of its WhiteWave Foods (WWAV) holding. Portfolio managers Jim Cramer and Jack Mohr sold the remaining 1,700 shares at a bid/ask of $55.24/$56.24. The sale comes after news that France's Danone (DANOY) will acquire WhiteWave for $56.25 per share in an all-cash transaction, representing a total enterprise value of approximately $12.5 billion, including debt.
Fellow AAP holding Costco Wholesale (COST) could finally be seeing its new credit card gaining traction.
Glenn Greene with Oppenheimer's Financial Tech and IT Service Team previewed upcoming Visa (V) results and indicated that recent data/commentary from Citigroup (C) suggests initial, meaningful success with the new Costco card program. Citi and Visa are also held in Action Alerts PLUS.
In a research note Wednesday, Oppenheimer analysts noted, per Citi commentary, in the first three and a half weeks new card sign-ups topped expectations at 337,000 and purchases on the card totaled $5.7 billion, including about two-thirds transacted outside the wholesale retailer.
"Bottom line: New and existing members seem to be embracing COST's new co-branded credit card offer," concluded the Oppenheimer analysts.
Costco is set to announce July sales on Aug. 3. Following the June sales report, which saw better-than-expected same-store-sales growth, Cramer and Mohr said in a note to subscribers Friday, "We couldn't be more constructive on the long-term thesis (hence it is a member of our Core Holdings list)." They added, however, that they trimmed the position after the stock rallied on the news. Cramer and Mohr added that they would look to add back to the position near their cost basis in the low $150s. The stock closed at $168.04.