CIF Sector Update Report (Spring 2014)

Transcription

1 CIF Sector Update Report (Spring 2014) Sector: Industrials (XLI) Analyst: Taylor Yotz Presentation Date: Monday, April 28 th 2014 Review Period: Start Date: Tuesday, April 1 st 2014 End Date: Wednesday, April 23 rd 2014 Section (A) Sector Performance Review (A- 1) Sector Performance Relative to SP500 1

2 Over the last month, the Industrials Sector (XLI) tracked very similarly to the S&P500 (^GSPC) and consistently outperformed it during the entire review period. The companies contained within the Industrials Sector may operate in these three fields: the manufacture and distribution of capital goods, the provision of commercial services and supplies, and the provision of transportation services. Recently, the ISM (Institute of Supply Management) Index, which essentially monitors the conditions of national manufacturing, remained strong and shows a continuing trend of steady improvement. This indicator is inline with the general trend that we have been seeing in Industrials over the last few months the trend of slow, steady growth. Furthermore, analyses believe that the Industrials Sector is in the mid- cycle expansion phase of its business cycle, which typically yields to an outperformance of the economy in general. Recently, there have been news articles and analysis reports that depict some positive characteristics for this sector. Lately, it has been noticed that Industrial Sector companies are seeing improvements in their balance sheets, an easing of lending standards, increasing demand from companies with low inventory holdings, and some countries are considering reducing their austerity- related policies. When you combine an increase in demand with the ability to capture that demand through availability of capital you have a great opportunity for these companies to capture substantial returns. (A- 2) Big Sector Movers Top Two Sector Gainers (1- Month) Delta Airline, DAL, +2.14, +6.12% Lockheed Martin, LMT, +5.29, +3.38% 2

3 Bottom Two Sector Losers (1- month) Norfolk Southern Corp., NSC, 1.91, 1.97% Jacobs Engineering Group, JEC, 0.73, 1.13% 3

4 The two largest gainers DAL and LMT certainly made some strong gains for the 1- month period, but the losers (NSC and JEC) losses really were not too substantial. Delta Air Lines (DAL) saw a 6.12% price appreciation. The airline saw solid demand (Pres. Ed Bastain) that led to a 5% earnings revenue increase and a net income well over consensus estimates ($281 M vs. $243 M). All of this success occurred despite of the bad weather, which led to the cancellation of 17,000 flights. Lockheed Martin (LMT) showed good cash flows and a noticeable return on equity. Norfolk Southern (NSC) had a Q1 profit down 18%; severe weather slowed shipments and coal revenue fell 15%. The company s revenue missed expectations by 15%. This was largely caused by a loss of utility contracts and the bad weather, which called for shorter- length trains, more locomotives and more workers. Jacob s Engineering (JEC) reported Q1 on April 28 th. The company reported a negative 2.74% earnings surprise, which the company associated the losses with the acquisition of Sinclair Knight Merz. On the positive side, the company has been winning recent contracts and ha been seeing an increase of repeat business. Top Two Sector Gainers (3- Month) Caterpillar Inc., CAT, , % 4

5 Union Pacific Corp., UNP, , % Bottom Two Sector Losers (3- Month) The ADT Corp., ADT, 9.36, 29.66% 5

6 Kansas City Southern Inc., KSU, 15.16, 12.96% The two largest gainers (CAT and UNP) and losers (ADT and KSU), over the 3- month period, both posted substantial price increases and decreases in their respective directions. Caterpillar (CAT) reported quarterly earnings on April 24 th that topped estimates and significantly raised its full- year outlook. Global construction grew 10% year- over- year, but the company is forecasting a very tough year for mining. This is very unfortunate because mining accounts for 17% of sales. The company has also been spending a lot of money on restructuring the company, but it is expected to pay off positively and analysts feel strongly bullish about the company. Union Pacific (UNP) reported Q1 earnings on April 17 th. The report indicated that profit was up 14% and shipments of agricultural, industrial and coal products yielded an increase in revenue 6

7 of 7%. Although the bad weather hit many companies hard, UNP was largely unaffected. The storms mostly hit in locations that UNP doesn t service, but for those places that it does, its investments in its railroad network proved to keep efficiency relatively high. The positive report out of UNP regarding shipments is a positive indicator for the health of the market overall. ADT has been struggling lately and has faced repeated downgrades and skyrocketing short interest numbers. The company has seen its short interest days- to- cover jump up to 12.8 days and 21.9% of its shares are shorted up 6.3% just recently. These are strong bearish signals and the analysts have been quick to downgrade the company s stock outlook. To the contrary of UNP s success, Kansas City Southern (KSU) has been facing hurdles. KSU reported Q1 on April 16 th and the report included record revenue and smaller profit. Overall, shipments were up 4%, but the company is currently facing a massive lawsuit. A class- action lawsuit has been filed against Kansas City Southern and four top of its executive accusing violation of the Securities Exchanges Act. The specific accusation is that information about shipment volume and regulator issues in Mexico were withheld for the purpose of artificially inflating the share price. (A- 3) Two Largest Stocks in the Sector General Electric Co. GE 10.50% of XLI United Technologies Corp. UTX 5.54% of XLI Highlight noteworthy news, announcements, or events relevant to the two stocks. General Electric (GE) has been making moves to essentially become a new GE. GE s business potential becomes clear based on its growing backlog. The trend of its backlog of orders has been consistently growing year over year The Company is focusing on simplification and improving efficiency across all segments of their business. The company has been shedding its non- core financial assets and is refocusing back onto its industrial operations. 7

8 In an April 22 nd conference call, United Technologies executives gave great insight into their recent success. They reported a 5% organic sales growth in the first quarter. These results were strongly driven by their aerospace and HVAC product lines. Despite the fact that government defense orders are down (- 2%), the commercial aviation segment saw strong growth (+8%) and overcame the decline in defense orders. With regard to HVAC products, the company has seen a strong and steady increase (+19% in North America) in orders as the outlook remain positive or the housing and construction markets. (A- 4) Short- term (up to Three Months) Outlook of the Sector I confidently believe that the Industrials Sector will continue its slow but steady growth. Coming out of the recession, this sector s companies have become relatively cash- rich and lending practices has begun to loosen. We know that the Industrials Sector is highly capital- intensive and both of those factors bode well for this characteristic. Combine this characteristic with the fact that the increasing demand for good and services produced, and you have set up and opportunity for the companies within this sector to easily capitalize on strong opportunities for revenue and growth. The capitalization on these opportunities will feed back to investors in a variety of forms; particularly important for our fund, I expect that we will continue to see appreciating stock prices. 8

9 Section (B) Sector Holding Updates Company #1: FedEx Corp. FDX Date Recommended: 02/24/2014 Date Re- evaluated: 04/24/2014 (B- 1) Company Updates and Stock Performance Company Update FedEx (FDX) released its earnings for the third quarter (Q3) on March 19 th, Unsurprisingly, FDX reported that the unusually sever winter storms cost the company $125 million through disrupted operations, decreased shipping volume and increased costs. Despite this large disruption, the company posted strong numbers. Revenue, operating income, operating margin and net income climbed by 3%, 9%, 5.4% and 5%, respectively. Looking to the future, FDX projects earnings to be $2.25 to $2.50 per diluted share in Q4 and $.55 to $6.80 per diluted share for fiscal In the news, FDX is facing two lawsuits. The older lawsuit is between FedEx vs. NYC and NY State. NYC and NY State complain that FDX delivered nearly 400,000 cartons of unstamped cigarettes to homes in the state. State of New York Attorney General Eric Schneiderman is seeking $239 million in damages and penalties. Just in the last few days, a mother of a child who was killed in the collision between a FedEx truck and a California bus sued the company for negligence and is seeking $100 million in damages. The California Highway Patrol has not yet determined the cause of the crash. The suit alleges that FedEx trucks have a history of catching fire. Relative Performance FedEx (FDX) performed exceptionally over the review period; the stock price strongly outpaced both the S&P500 (^GSPC) and the Industrials Sector ETF (XLI). It is clear that the stock performs inline with the movements of the market, but its more volatile swings have put it well above both comparisons. With regard to the review period (4/1/2014 4/ ), we see that the stock has remained largely unchanged with some sizeable swings to both the positive and negative sides. These movements are essentially mirrored by the S&P500 and the sector EFT. 1- Year Price Chart 9

10 (B- 2) Valuations, Estimates and Recommendations Original Analysis Ratio Company Industry Sector P/E (TTM) P/S (TTM) P/B (MRQ) P/CF (TTM) Re- evaluation Analysis Ratio Company Industry Sector P/E (TTM) P/S (TTM) P/B (MRQ) P/CF (TTM) Comparing the original analysis and the re- evaluation data, it is clear that there is a general trend of FDX s figures decreasing while the industry and sector s figures show large increases. This shows that FDX stock is getting less expensive, which goes against the trend for the industry and the sector. Historical Surprises Original Analysis Estimates vs. Estimates Actual Difference Surprise % Actual Sales (millions) Quarter Ending Nov , ,

11 Quarter Ending Aug- 13 Quarter Ending May- 13 Quarter Ending Fed- 13 Quarter Ending Nov- 12 EPS Quarter Ending Nov- 13 Quarter Ending Aug- 13 Quarter Ending May- 13 Quarter Ending Fed- 13 Quarter Ending Nov , , , , , , , , Re- evaluation Analysis Comment on the changes Comparing the original analysis and the re- evaluation data, the most important categories to examine are the sales and earnings numbers for quarter ending Fed- 14. Comparing those to categories to the period before (quarter ending Nov- 13), we see that the company posted 11

12 numbers that beat the estimate in both area and increased the size of the surprise as compared to the period before. This is great for FDX and shows strength in the price appreciation. Consensus Estimates Original Analysis # of Estimates Sales (Millions) Quarter Ending Feb- 14 Quarter Ending May- 14 Year Ending May- 14 Year Ending May- 15 EPS Quarter Ending Feb- 14 Quarter Ending May- 14 Year Ending May- 14 Year Ending May- 15 LT Growth Rate (%) Re- Evaluation Analysis Mean High Low 1 Year Ago 20 11, ,789 10,768 11, , ,023 11,316 11, , ,093 44,729 46, , ,367 46,511 49,

13 Comment on the changes The first thing of note when comparing the original analysis and the re- evaluation is that there is a lower number of estimates in the most recent data. Considering the sales portion of this data, analysts have gotten bearish about the current quarter (ending May 2014), but they have upgraded their outlook for both the current year and next year. Considering the earnings portion of this data, it counters that of the sales portion the analysts are more bullish on the current quarter, but have gotten more bearish on the current year and next year. Furthermore, the long- term growth rate has been downgraded slightly. Estimate Revision Analysis Original Analysis (02/24/2014) 13

14 Re- Evaluation Analysis 14

15 Comment on the changes Overall, the two periods of consideration are very similar. In general, the trend of analysts revisions is to downgrade the stock. In more detail, there are less total revisions (in either direction) in the most recent period. The most significant revisions are the downgrades for the earnings estimates for the year ending May Analysts Recommendations Original Analysis 15

16 Re- Evaluation Analysis Comment on the changes In contrast to some of some of the revisions that we ve seen above, analysts are remaining bullish on FDX. The trend for analysts recommendations has been increasing and remaining steady with a mean rating of outperform on the linear scale. Comforting is the fact that only one analyst is projecting the stock to underperform and none are recommending a sale. 16

17 (B- 3) Technical Indicators ( Moving Average and Relative Strength Index from & 50- day moving average (MA) technical analysis chart with relative strength index (RSI) 50- & 200- day moving average (MA) technical analysis chart with relative strength index (RSI) 17

18 How have the two sets of technical charts changed from the ones in the original report? Are findings from technical analysis supportive of your other findings? First considering the 10- and 50- day moving average chart, as we predicted originally, the stock did post a golden cross in mid- March, but unfortunately, this was offset immediately be a death cross. We could see another golden cross any day now. This chart is indicative of a resistance level for the stock around $135. With regard to the 50- day and 200- day moving average chart, we see another indication of resistance around $135. The 50- day and 200- day moving average trends are approaching each other and leveling off. The RSI has remained very similar to what was reported previously and they do not give any substantial new insight to the stock s performance. Stock #2: Union Pacific Corp. UNP Repeat the above for Stock #2, and the rest of the individual stocks CIF holds from the sector. Date Recommended: 03/28/2014 Date Re- evaluated: 04/25/2014 (B- 1) Company Updates and Stock Performance 18

19 Company Update Union Pacific (UNP) reported Q1 earnings on April 17 th. The report indicated that profit was up 14% and shipments of agricultural, industrial and coal products yielded an increase in revenue of 7%. Although the bad weather hit many companies hard, UNP was largely unaffected. The storms mostly hit in locations that UNP doesn t service, but for those places that it does, its investments in its railroad network proved to keep efficiency relatively high. The positive report out of UNP regarding shipments is a positive indicator for the health of the market overall. Relative Performance Over the recent one- year period, we have seen respectable performance by UNP. The company s stock lagged behind the Industrials Sector index (XLI) and S&P500 (^GSPC). Recently, UNP s stock price rushed ahead and easily surpassed the S&P and is on track to overtake XLI. UNP s stock likely surged ahead based on strong reports of efficiency despite the bad weather that troubled its competitors, increased shipments and positive financials. 1- Year Price Chart (B- 2) Valuations, Estimates and Recommendations Original Analysis Ratio Analysis Company Industry Sector P/E (TTM) P/S (TTM) P/B (MRQ) P/CF (TTM) Re- evaluation Analysis Ratio Analysis Company Industry Sector P/E (TTM)

20 P/S (TTM) P/B (MRQ) P/CF (TTM) Across nearly all categories, UNP has posted lower valuations as compared to the original analysis. This movement was similar to the movements of the same numbers for the industry, but those numbers for the sector were notably increased. This signals that despite the movements of the sector, UNP s stock is becoming less expensive. Historical Surprises Original Analysis Re- evaluation Analysis 20

21 The most recent earnings release was for the quarter ending March 2014; earnings were released for the preceding quarter ending December The earnings that were released for the quarter ending December 2013 were very strong and carried significant positive surprises in both earnings and sales. For the quarter ending March 2014, quarterly earnings fell significantly, but still created a positive surprise. That same quarter continued the trend of posting very strong sales numbers and the surprise was significant. Consensus Estimates Original Analysis 21

22 Re- Evaluation Analysis 22

23 Regarding analysts consensus estimates, comparing the original analysis to the reevaluation, the number of analysts making estimates stayed largely the same and their estimates increased slightly. There were noteworthy upgraded estimates for sales figures and long- term growth rate projections. Estimates for earnings figures fell slightly. Estimate Revision Analysis Original Analysis (03/25/2014) 23

24 Re- Evaluation Analysis 24

25 This area of the report is significant. There have been a huge number of positive revisions. In the original analysis, we saw that analysts were making a large number of positive revisions with regard to sales and a similar number of both positive and negative revisions regarding earnings. However, the re- evaluation has shown that many more revisions have been made overall and that the revisions are especially strong regarding earnings, which was a weak point in the original analysis. It is apparent that analysts are getting more bullish on UNP. Analysts Recommendations Original Analysis 25

26 Re- Evaluation Analysis Considering analysts recommendations linearly, we see that UNP has recently fallen slightly, but continues to hold its strong buy position. In previous months, we have seen UNP constantly appreciating in the eyes of analysts. In this most recent month, that trend leveled off and fell slightly. One less analyst made a recommendation and one moved to a hold opinion. In general, we are talking about one analyst downgrading their opinion out of the twenty- six that made a recommendation. Overall, this stock still have a very strong position in the buy category with the mean rating of analysts recommendations being 1.88 out of 5. 26

27 (B- 3) Technical Indicators ( Moving Average and Relative Strength Index from & 50- day moving average (MA) technical analysis chart with relative strength index (RSI) 50- & 200- day moving average (MA) technical analysis chart with relative strength index (RSI) 27

28 Both technical analysis charts look strong and show consistent, positive price appreciation. The 6- month chart showed a golden cross between the 10- and 50- day moving averages, but that was relatively long ago. In recent terms, both the 6- month and the 1- year charts show strong appreciation with no sign of any crossovers or resistance levels. The two technical charts contained within this report are very similar to those in the previous report. They have a common theme of a strong positive trend with no recent crossover activity. The charts contained within this report seem to be less volatile than the previous report s, which were not particularly volatile in the first place. I consider this to be a bullish set of indicators for UNP s stock. Stock #3: Precision Cast Parts Corp. PCP Repeat the above for Stock #2, and the rest of the individual stocks CIF holds from the sector. Date Recommended: 04/04/2014 Date Re- evaluated: 04/25/2014 (B- 1) Company Updates and Stock Performance Company Update 28

29 Precision Castparts (PCP) will report earnings on May 8 th. Analysts are optimistic about these upcoming earnings and are issuing buy recommendations. The company is a diversified manufacturer of complex metal components and products. The multitude of articles recommending PCP as a buy abound. PCP has shown strong financial growth, diligent management and is positioned to capitalize on the aerospace industry. Regarding financial growth, the company has been posting a year- over- year earnings growth of 27.7% and annualize EPS growth of 18.7% over the last decade. PCP is also positioned to capitalize on the aerospace industry which is in a growth phase through their specialization on advanced components for aircraft and engine manufacturers. This is an expensive area to operate and PCP uses the high barriers to entry to enjoy a dominant market share. Furthermore, The Oracle of Omaha, Warren Buffet, enjoys PCP as his number 1 growth stock in the last five years; PCP has posted an EBITDA of 19.50% and makes up 0.51% of Buffet s portfolio weight. Relative Performance Spanning the entire 1- year stock chart, PCP has outpaced the S&P500 (^GSPC) and the Industrials Sector EFT (XLI). PCP s price moves inline with the movements of the S&P and XLI, but it makes those movements with volumes that are much larger to the positive side. Moving inline with the two comparisons is to be expected for this type of stock, which operates in such a cyclical industry that is so sensitive to the business cycle. 1- Year Price Chart (B- 2) Valuations, Estimates and Recommendations Original Analysis Ratio Analysis Company Industry Sector P/E (TTM) P/S (TTM) P/B (MRQ)

30 P/CF (TTM) Re- evaluation Analysis Ratio Analysis Company Industry Sector P/E (TTM) P/S (TTM) P/B (MRQ) P/CF (TTM) Looking at the original analysis and comparing it to that of the re- evaluation, we see a clear and consistent decrease in the valuations of PCP s ratios. At the same time, we see mixed movements in figure for their industry and valuation appreciation for the sector as a whole. Based on these valuations, we see PCP getting less expensive. Historical Surprises Original Analysis Re- evaluation Analysis 30

31 These numbers are the exact same from the original report and have not changed in any way. Consensus Estimates Original Analysis 31

32 Re- Evaluation Analysis 32

33 There has been nearly no change at all between the consensus estimate numbers from the initial review to the re- evaluation of this review. Slightly more analysts have submitted an estimate recently, but this has not moved any of the figures in a noteworthy way. Estimate Revision Analysis Original Analysis (04/04/2014) 33

34 Re- Evaluation Analysis 34

35 The initial analysis of estimate revisions yielded nearly zero data; out of 32 categories, only two had any data, and that data was from a single analyst in each field. In the re- evaluation, we see more data, but it is still lower than that of the other stocks considered in this report. Apparently, revisions are infrequent for PCP. Fortunately for our stock, nearly all the revisions are positive; seven out of nine revisions were upgrades. Most of the activity was in the earnings portion of the data and only slightly in that of the sales portion. To me, this indicates that analysts are comfortable with were they have placed their estimates and they are not expecting much deviation. Analysts Recommendations Original Analysis Re- Evaluation Analysis 35

36 There has been no change between the analysis contained in this re- evaluation and that of the original evaluation. All the analysts have kept their recommendations the same for the last three months. The recommendation is a strong buy recommendation of 1.59 out of 5. (B- 3) Technical Indicators ( Moving Average and Relative Strength Index from *** Note: see Sector Update Report Guidelines for instructions *** 10- & 50- day moving average (MA) technical analysis chart with relative strength index (RSI) 36

37 50- & 200- day moving average (MA) technical analysis chart with relative strength index (RSI) In the 6- month cart, we have recently seen a death cross and indicators of a resistance level in the stock s price. There are not crosses in the 1- year chart, but the sentiment of a potential resistance level 37

38 does exist. Comparing these two charts with the two charts from the initial report, things are looking much more positive; there is less volatility, stronger gains and less crossing activity. Comparing the charts of this report and the initial report further confirms suspicions of a resistance level. Section (C) Sector Holding Recommendations Based on your sector update research, recommend and provide justifications what CIF should do for each individual stock it holds in the sector: 1. Continue to hold and keep target price & stop- loss price as is; 2. Adjust target price. If you recommend an adjustment, you must suggest a new target price ; 3. Adjust stop- loss price. If you recommend an adjustment, you must suggest a new stop- loss price ; 4. Sell the stock; Provide your recommendations in the following table Recommendation Company Name Ticker Symbol Date Recommended FedEx Corporation FDX February 24 th, 2014 Date Re- evaluated April 24 th, 2014 Sell Don t Sell Adjust Target Price Don t Adjust Adjust Stop- loss Price $ Union Pacific Corporation UNP March 28 th, 2014 April 25 th, 2014 Don t Sell Don t Adjust Don t Adjust Precision Castparts Corporation PCP April 4 th, 2014 April 25 th, Don t Sell Don t Adjust Don t Adjust FedEx Corporation FDX FedEx has mixed indicators. There are many indicators of resistance in the stock s price at its current level and the company appears to be getting less expensive (considering ratios). Furthermore, analysts estimates for earnings and sales are bearish for the current quarter, but bullish for the coming years. Despite this, analysts have kept their recommendations high and bullish (2.10 out of 5). We currently hold 160 shares of FDX and the stock has returned a capital gain of 1.66%. In the long run, I think that FDX will continue to appreciate and provide our fund 38

39 with solid returns. At this point, I have concerns about the short term. FedEx will release its next set of earnings on June 18 th, With the recent bad press and stagnation in the stock s price, I am going to recommend that we hold the stock in our fund, but raise the stop- loss price to $ This is a substantial increase to the previous level, which was $120. I believe that this stock has the potential to move higher in the coming months, but I also feel their considerable likelihood that it will fall. We bought 160 shares of FDX at $135.16, and thus, selling the stock at $125 per share will cost our fund $1, (excluding transaction costs). Union Pacific Corporation UNP UNP has been showing great performance lately and I expect that to continue. UNP has been posting strong numbers, vastly outperforming competitors and overcoming unusual obstacles. Considering all of this, it is no surprise that the general trend of analysts is estimate that the stock will continue its bullish trend and that the price will move higher. Considering these factors, I suggest that our fund keep the original parameters surrounding this stock. Precision Castparts Corporation PCP The analyses performed in this report yielded surprisingly little information. The majority of comparisons made on analysts opinions yielded no data. It is clear that analysts are keeping their opinions the same (nearly exactly the same) and that they are still strongly bullish on the stock. Technical indicators are signaling that we have reached a resistance level for the stock. Furthermore, we have seen signals from the ratios that show the stock is getting less expensive. We have only made a capital gain of 0.06% on the 80 shares that we hold. At this point, I recommend that we leave our positioned unchanged; we do not have any information from which to make any adjustments and the stock has remained basically unchanged since we first acquired it. Section (D) Works Cited PCP Historical Prices (4/1/2014 4/23/2014) UNP Historical Prices (4/1/2014 4/23/2014) FDX Historical Prices (4/1/2014 4/23/2014) ^GSPC Historical Prices (4/1/2014 4/23/2014) XLI Historical Prices (4/1/2014 4/23/2014) XLI vs. ^GSPC 6- Month Chart 39

40 SPDR Sector Heatmap tracker/components DAL 1- Month Chart LMT 1- Month Chart NSC 1- Month Chart JEC 1- Month Chart CAT 3- Month Chart UNP 3- Month Chart ADT 3- Month Chart KSU 3- Month Chart United Technologies CEO Discusses Q1 technologies- ceo- discusses- q html Why GE May Be Doing Everything Right why- ge- may- be- doing- everything- right Fidelity Industrials Sector Details tab=learn&sector=20 Schwab Sector Views Views#industrials Forbes Delta canceling- 17k- flights- delta- delivers- profit- growth/ The Street LMT martin- corporation- lmt- stock- with- unusual- social- activity.html ABC News Norfolk Southern Q1 southern- railroad- 1q- profit- falls- 18- pct Zacks Jacobs Engineering 40

41 jacobs- jec- surprise- this- earnings- season Reuters CAT caterpillar- results- idusbrea3n10a ABC News Union Pacific Q1 pacific- railroads- 1q- profit- 14- percent WKRB ADT Short Interest Issues interest- in- adt- corp- increases- by adt/ Kansas City Business KSU Q1 city- southern- reports- record.html Kansas City Business Journal KSU Lawsuit kansas- city- southern- execs- misled.html Yahoo FDX Technical Charts Reuters FDX Analysts Reuters FDX Financials FDX Investor Relations Q3 newsarticle&id= Reuters FDX Cigarette Lawsuit fedex- newyork- smoking- idusbrea2u ABC News FDX Bus Lawsuit sued- deadly- california- bus- crash Yahoo UNP Technical Charts Reuters UNP Financials Reuters UNP Analysts Yahoo PCP One- Year Chart Yahoo PCP Technical Analysis Reuters PCP Analysts 41

42 Reuters PCP Financials Global Newswire PCP Q4 release/2014/04/25/629809/ /en/precision- Castparts- Corp- Sets- Fourth- Quarter- Fiscal Earnings- Release- Date.html Seeking Alpha PCP Precision Growth precision- growth- why- i- own- precision- castparts- corporation Seeking Alpha PCP Airline/Aerospace Opportunity precision- castparts- the- smartest- way- to- play- airlines- and- aerospace The Street Warren Buffet, PCP buffetts- 10- favorite- growth- stocks.html 42