Stock Market Today: Herbalife's $1 Billion Bet and Sysco's Challenge

Why Herbalife, Sysco, and Jos. A. Bank stocks are on the move today.

Feb 3, 2014 at 9:00AM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Investors can expect a flat start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) gained an insignificant 14 points in premarket trading this morning. Janet Yellen will be sworn in as chairwoman of the Federal Reserve later today. She begins her four-year term as the central bank is steadily closing down its bond-buying program, while still promising to maintain extra low interest rates for a prolonged period.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including Herbalife (NYSE:HLF), Sysco (NYSE:SYY), and Jos. A. Bank (NASDAQ:JOSB).

Herbalife today provided investors with a "preview" of its fourth-quarter earnings results that are due out on Feb. 18. The nutrition company sees sales growth of about 19%, higher than the 15% that the Street expected. But profit should come in at $1.15 a share, slightly below forecasts, thanks mainly to exchange rate changes. Herbalife also announced its intention to take on $1 billion in new debt, which it plans to use mostly to fund share repurchases. The stock is up 3.8% in premarket trading.

Sysco this morning posted weaker than anticipated earnings results for its fiscal second quarter. Sales grew by just 4.1% for the food giant, to $10.8 billion. Analysts expected a bigger rise, to $11.4 billion. Earnings also came in slightly below forecasts, at $0.36 a share. Sysco said the challenging environment for its restaurant customers continued in the quarter, which had the effect of pressuring sales growth and profits. Still, the company is looking forward to closing its huge merger with US Foods, which should conclude upon meeting regulatory approval. Sysco's stock is down 0.06% in premarket trading.

Finally, Jos. A. Bank this morning rejected the latest buyout offer from Men's Warehouse (NYSE:MW), saying that last week's $57.50 a share proposal "substantially undervalues" the company. Jos. A. Bank management also didn't leave much room for this process to move forward, as it declined to even join in negotiations between the two clothing giants. In its letter rejecting the offer, Jos. A. Bank suggested that Men's Warehouse, along with its largest shareholder, hedge fund Eminence Capital, could be pursing this deal only for short-term gain and not in the long-term interests of shareholders. Jos. A. Bank's stock is down 3.9% in premarket trading.

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Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has the following options: long January 2015 $50 calls on Herbalife Ltd.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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