Diamonds and Dogs

8/30/17

The chips keep rolling. Analog Devices (ADI) is up 5% to new recent highs after beating earnings estimates. The company beat by 11 cents as rose revenues rose 64.9% year/year to $1.43 billion. For the current quarter, the company raised quarterly guidance as gross margins came in at 70.5%. Drexel Hamilton upgraded the stock with a $105 price target thanks to healthy global demand backdrop and strong consumer product cycles.

HR Block (HRB) has seen better days. The tax preparer stock is down 8% to a three month low after disappointing earnings. The company reported a loss of 62 cents in line with expectations, but had little to say about rest of the year or prospects for 2018. One analyst reiterated a sell rating with a $19 price target saying he expects a modest growth profile in a highly competitive tax environment.