Activity levels and pricing for oil-field services and equipment will likely remain under pressure in the US onshore market this year, with early 2017 bringing a bit of a recovery on both scores. But a return to the levels witnessed during the boom years appears unlikely, especially if Saudi Arabia opts to tap some of its spare capacity to take market share and keep oil prices in check.
Investors in initial public offerings (IPO) often harbor dreams of windfall profits by buying a winning growth story in its early innings. Nothing stokes investors’ imaginations like a hot tech IPO, but late-stage fundraising rounds have emerged as an alternative source of funding. Mutual funds and other institutional investors have become increasingly active in the private market.
Although Exelon could be forgiven for swearing off future deals after enduring a painfully drawn-out approval process for its acquisition of Pepco, the management team has expressed an appetite for another merger. If the company completed due diligence on an alternative acquisition, a follow-up deal could come sooner than you might expect.
Our favorite electric utilities should be able to accelerate their earnings and dividend growth rates, thanks to growing adoption of renewable energy and utilization of gas-fired power plants. And unlike previous periods of growth, the latest boomlet doesn't involve taking on significant operating risk.
The US economy continues to grow at a lackluster pace, first-quarter earnings have disappointed and the S&P 500 trades at stretched valuations. Although none of these factors preclude additional upside in US equities over the near term, we stand by our cautious outlook for the broader market and prefer to focus on defense.
A strategic spin-off will highlight this industrial player’s promising life sciences business and unlock value for shareholders. Another across-the-board selloff after the industrial sector’s recent rebound would create an ideal buying opportunity.
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