Trending Stocks: Xerox, LyondellBasell, Enbridge, and 2 More

U.S. stock futures are flat this morning following a decline in crude prices over worries surrounding renewed oversupply. Investors are also digging into the latest quarterly earnings from several companies and awaiting a report from the U.S. Commerce Department concerning economic health. Among the stocks making moves this morning are Xerox Corp (NYSE:XRX), LyondellBasell Industries NV (NYSE:LYB), Enbridge Inc (NYSE:ENB), Phillips 66 (NYSE:PSX), and  Merck & Co., Inc. (NYSE:MRK). Let’s see what’s happening with these stocks and check out hedge fund sentiment towards them.

Hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).

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Xerox Beats Estimates

Xerox Corp (NYSE:XRX) is in the spotlight today after the company beat analysts’ forecasts for its second quarter earnings. The Connecticut-based company posted EPS of $0.30, topping the consensus estimate of $0.25. Sales for the quarter totaled $4.40 billion, narrowly eclipsing the consensus mark of $4.39 billion. For the full 2016 fiscal year, Xerox expects EPS of $1.10-to-$1.20. The company said it is making progress towards splitting its business into two separate publicly-traded companies. Xerox CEO Ursula Burns said that the company’s services segment delivered significant margins and that revenue is growing in document outsourcing. A total of 29 hedge funds in our database were long Xerox Corp (NYSE:XRX) at the end of the first quarter.

LyondellBasell Misses Estimates

LyondellBasell Industries NV (NYSE:LYB) is over 6% in the red in morning trading after the company’s second quarter results missed analysts’ expectations. The chemical company had adjusted earnings of $2.45 per share, beneath the Street’s expectation of $2.54 per share. Revenue for the quarter came in at $7.33 billion, well below estimates of $7.76 billion. 54 hedge funds in our system held stakes in LyondellBasell Industries NV (NYSE:LYB) at the end of March.

On the next page we’ll discuss the results out of Enbridge, Phillips 66, and Merck & Co.

Enbridge Posts Second Quarter Results

Phillips 66 Posts Mixed Results

Phillips 66 (NYSE:PSX) has dipped by 2.66% this morning despite its second quarter earnings beating analysts’ estimates. The Texas-based energy company reported adjusted EPS of $0.94, beating the $0.93 consensus mark. However, the company’s quarterly revenue of $22.31 billion was well below the $25.52 billion anticipated by analysts. Phillip 66’s CEO Greg Garland said in a statement that the company delivered industry-leading safety performance in the quarter. Mr. Garland added that utilization rates of refining reached record highs and chemicals completed a major turnaround in the quarter. As of the end of the first quarter, 34 hedge funds in our system owned shares of Phillips 66 (NYSE:PSX).

Merck & Co Powers Past Estimates, Reports Increase in Dividend

Merck & Co., Inc. (NYSE:MRK)’s stock has gained a little less than 1% today after the company reported second quarter EPS of $0.93 on $9.84 billion in revenue, topping the consensus estimates of $0.91 in EPS on $9.78 billion in revenue. For the full fiscal year, the pharmaceutical company expects EPS of $3.67-to-$3.77, in-line with the consensus target of $3.72. The company also reported a 1% increase to its quarterly dividend, driven by higher sales of its cancer drug, Keytruda. Out of 766 active hedge funds tracked by Insider Monkey, 70 funds were long Merck & Co., Inc. (NYSE:MRK) at the end of March .

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