I follow quite a lot of companies, so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I’d be unable to keep up on my favorite sectors and see what’s really moving the market. Even worse, I’d be lost when the time came to choose which stock I’m buying or shorting next.
Today is Watchlist Wednesday, so I’m discussing three companies that have crossed my radar in the past week — and at what point I may consider taking action on these calls with my own money. Keep in mind that these aren’t concrete buy or sell recommendations, nor do I guarantee I’ll take action on the companies being discussed. What I can promise is that you can follow my real-life transactions through my profile and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.
Apple Inc. (NASDAQ:AAPL)
You can go ahead and give yourself all the reasons in the world why Apple should sell off after announcing its Street-topping second-quarter results, but I can give you 145 billion reasons why it remains an intriguing buy!
For the quarter, Apple Inc. (NASDAQ:AAPL) reported an 11% increase in revenue to $43.6 billion as it upped sales of the iPhone to 37.4 million from 35.1 million in the year-ago period, and iPad sales launched to 19.5 million from 11.8 million. Yes, PC sales remain a weak point with Mac sales dipping again, but overall this was another strong quarter of cash flow generation and consistent execution.
Not only did Apple Inc. (NASDAQ:AAPL) end the quarter with $145 billion in cash, but it also announced a long-awaited increase in its dividend and a big boost in its share repurchase program. Apple Inc. (NASDAQ:AAPL) upped its dividend by 15% to $3.05 per quarter and plans to return $100 billion in capital to shareholders through these dividends and share buybacks over a three-year period. As such, Apple Inc. (NASDAQ:AAPL)’s board authorized a 500% increase in its share repurchase program to $60 billion from $10 billion that is expected to be completed by the end of calendar 2015.
Again, what’s wrong with Apple Inc. (NASDAQ:AAPL)? Other than a big group of emotional traders, nothing that I can tell!
Chipotle Mexican Grill, Inc. (NYSE:CMG)
Sticking with the theme of earnings-driven stock moves, fresh-Mex restaurant chain Chipotle Mexican Grill, Inc. (NYSE:CMG) rocketed higher last week after reporting better-than-expected first-quarter results.
For the quarter, Chipotle Mexican Grill, Inc. (NYSE:CMG) delivered a 13% increase in revenue to $726.8 million as adjusted EPS jumped 24%, but it achieved this mainly through the opening of new stores. Chipotle Mexican Grill, Inc. (NYSE:CMG)’s actual same-store sales growth improved just 1%. Looking ahead, Chipotle cautioned investors to expect same-store sales growth to be flat to up low-single-digits.