Here’s Why Traders Are Watching These Stocks Today

The three major indexes are slightly in the red this morning amid earnings releases and weak German economic sentiment numbers.

Several stocks are in the spotlight today, including Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY), MGIC Investment Corp. (NYSE:MTG), Comerica Incorporated (NYSE:CMA), Johnson & Johnson (NYSE:JNJ), and Regions Financial Corp (NYSE:RF). Let’s dive in, take a look at why each stock is trending, and see what the investors from our database think about the companies in question.

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Nintendo Passes Sony in Market Cap

Everybody’s favorite momentum stock Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) just passed Sony Corp (ADR) (NYSE:SNE) in market cap on the Japanese stock exchange last night. The stock has approximately doubled in a short span on the back of the monster popularity of the augmented reality game Pokemon Go. Although Nintendo has to share much of the cash flow of Pokemon Go with various parties, some investors expect the company to introduce a hardware product associated with the game to capture more cash flow. Traders also expect Nintendo to try and catch lightning in a bottle again by introducing augmented reality games/mobile games with its other iconic IP assets such as Mario Brothers.

MGIC Beats

Given the strong U.S. economy, MGIC Investment Corp. (NYSE:MTG) reported better-than-expected results for its second quarter, with EPS of $0.26 on revenue of $263.5 million. Those numbers beat the consensus by $0.06 per share and $8.49 million, respectively. The company added $12.6 billion of high quality new insurance in the quarter, a rise of 6.7% year-over-year. Total insurance in force was $177.5 billion, up from second quarter 2015’s $168.8 billion. Book value per share was $7.37, up from $6.58 at the end of December 2015. Doug Silverman and Alexander Klabin’s Senator Investment Group owned 9.6 million shares of MGIC Investment Corp. (NYSE:MTG) at the end of March.

On the next page, we examine Comerica Incorporated, Johnson & Johnson, and Regions Financial Corp.

Comerica Turns in Mixed Results

Comerica Incorporated (NYSE:CMA) earned $0.77 per share on revenue of $714 million for its second quarter, beating the average analyst profit estimate by $0.08 per share but missing the top-line consensus number by $1.37 million. Overall, revenue rose by 5.2% year-over-year, led by a $1.1 billion increase in average loans, and increases in fee-based non-interest income. In terms of guidance, management expects the efficiency ratio to decline to the low 60% range by the end of 2017 and to or below 60% by the end of 2018 even if interest rates remain low. Management remains committed to achieving double digit returns on equity by cutting expenses by around $160 million by year-end 2018. A total of 36 funds from our database owned shares of Comerica Incorporated (NYSE:CMA) at the end of March, down by one from the previous quarter.

Johnson & Johnson Reports an Excellent Quarter

Dividend aristocrat and medical giant Johnson & Johnson (NYSE:JNJ) shares have inched up today after the company turned in excellent results for the second quarter. The company posted $1.74 per share, beating the average analyst estimate by $0.06 per share, while the company’s revenue came in at $18.48 billion, exceeding the top-line estimate by $500 million. Domestic sales rose by 7.4%, international sales inched up by 0.4% and there was a negative currency impact of 2.7%. The company experienced notable strength in its pharmaceuticals business, driven by the success of new products and the continued advancement of Johnson and Johnson’s drug pipeline candidates. For the full year, management expects adjusted EPS of $6.63 to $6.73 on revenue of $71.5 billion to $72.2 billion. Among the investors we track, 77 funds owned $5.25 billion worth of Johnson & Johnson (NYSE:JNJ)’s stock, which accounted for 1.80% of the float on March 31, versus 72 funds and $4.16 billion, respectively, on December 31.

Regions Results Mostly In-Line

Regions Financial Corp (NYSE:RF) reported mostly in-line second-quarter results for, which included EPS of $0.21 on revenue of $1.4 billion, versus estimates of earnings of $0.21 per share on sales of $1.37 billion. Average loans increased by 4% year-over-year, while net interest margin (NIM) inched lower by one basis point to 3.15%. Tangible book value was $9.22 per share, an increase from last year’s $8.37 per share. The number of funds followed by Insider Monkey with holdings in Regions Financial Corp (NYSE:RF) rose by five quarter-over-quarter to 41 at the end of March.

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