STOCKS TO KEEP AN EYE ON IN 2018
2018
50 COMPANIES
TO WATCH
Bloomberg Intelligence analysts identified 50 publicly traded companies—out of the 6,000 they track—worth special attention because they plan to release significant products and services in the coming year or because they face unusual challenges. To assemble the list, the analysts also considered factors such as revenue growth, profit margin, market share, and debt.
1​Advanced Micro Devices Inc.
SEMICONDUCTORS​AMD US EQUITY
EST. SALES GROWTH
18.8%
EST. EPS GROWTH
N/M
TOTAL ASSETS
$3.37B
12-MONTH SALES
$4.62B
1-YEAR TOTAL RETURN
108%
After years of disappointing products, AMD’s latest and upcoming chip releases—across desktops, servers, and laptops—will determine the company’s return to relevance. The chips could help AMD regain market share in 2018. Server processors are an important part of the mix and present an opportunity to gain share.
2Alaska Air Group
AIRLINESALK US EQUITY
EST. SALES GROWTH
22.9%
EST. EPS GROWTH
9.4%
TOTAL ASSETS
$10.72B
12-MONTH SALES
$6.9B
1-YEAR TOTAL RETURN
14.3%
Although Alaska has offered pilots lower pay but more stable employment than rivals, its 2016 merger with Virgin America Inc. led unions to demand wages in line with other full-service carriers—as much as 20 percent above current levels. If Alaska raises prices to compensate, it could lose a prime competitive advantage.
DOMESTIC CAPACITY ADDITIONS: SPIRIT AIRLINES 17.50%, ALASKA 7%, UNITED 5%, JETBLUE 4.5% TO 5.5%, DELTA 2% TO 3% (TOTAL), SOUTHWEST 1% TO 2%, AMERICAN 0.50%
3AMC Entertainment Holdings Inc.
ENTERTAINMENT​AMC US EQUITY
EST. SALES GROWTH
26.70%
EST. EPS GROWTH
-44.0%
TOTAL ASSETS
$9.81B
12-MONTH SALES
$4.19B
1-YEAR TOTAL RETURN
-44.4%
The world’s largest movie theater operator is facing the double threats of declining audience and the Chinese crackdown on Dalian Wanda Group Co., its majority owner. AMC is betting on cost cuts to make up for lost revenue and theater renovations to attract audiences, but it remains heavily indebted after a spree of acquisitions.
4AT&T Inc.
TELECOMT US EQUITY
EST. SALES GROWTH
-0.3%
EST. EPS GROWTH
2.0%
TOTAL ASSETS
$420.8B
12-MONTH SALES
$161.93B
1-YEAR TOTAL RETURN
-3.7%
With growth in the wireless market slowing, AT&T will seek to use content as an edge against rival Verizon Communications Inc. The company is on track to close its acquisition of Time Warner by the end of this year, giving it a library that includes HBO, Turner, and Warner Bros.
5BASF SE
CHEMICALS​BAS GR EQUITY
EST. SALES GROWTH
13.5%
EST. EPS GROWTH
14.3%
TOTAL ASSETS
$86.34B
12-MONTH SALES
$67.51B
1-YEAR TOTAL RETURN
32.3%
While the rest of the chemicals industry pursued transformational mergers, BASF has concentrated on smaller strategic acquisitions to help it offer higher-complexity, higher-cost products, increasing both its capacity and operating margins—a win-win.
6​Boohoo.com Plc
E-TAILBOO LN EQUITY
EST. SALES GROWTH
36.6%
EST. EPS GROWTH
48.8%
TOTAL ASSETS
$235M
12-MONTH SALES
$545M
1-YEAR TOTAL RETURN
182.9%
The apparel industry’s fastest-growing e-tailer is on track to see sales jump at least 80 percent this year, with new brands like PrettyLittleThing gaining traction in the company’s home U.K. market and the U.S. Local sourcing gives it wider margins than those of its competitors, but logistics could become a challenge.
7Cabot Oil & Gas Corp.
NATURAL GASCOG US EQUITY
EST. SALES GROWTH
34.6%
EST. EPS GROWTH
151.3%
TOTAL ASSETS
$5.22B
12-MONTH SALES
$1.58B
1-YEAR TOTAL RETURN
7.7%
Despite productivity improvements, delays in the construction of pipelines have left Cabot unable to transport some gas for sale. Northeast infrastructure expansion should allow the company to ship natural gas from the Marcellus Shale beginning in mid-2018.
8China Merchants Bank
BANKING​3968 HK EQUITY
EST. SALES GROWTH
N/M
EST. EPS GROWTH
17.7%
TOTAL ASSETS
$916.42B
12-MONTH SALES
$43.91B
1-YEAR TOTAL RETURN
56.2%
After slow earnings growth in 2015 and 2016, China’s leading retail and private bank is turning around its business thanks in part to better-quality loans and higher credit card fees. It’s also enhancing its financial technology capabilities through new mobile, cloud, and blockchain apps.
9Cosco Shipping Holdings Co.
SHIPPING​1919 HK EQUITY
EST. SALES GROWTH
N/M
EST. EPS GROWTH
83.2%
TOTAL ASSETS
$18.37B
12-MONTH SALES
$12.26B
1-YEAR TOTAL RETURN
72.7%
With its acquisition of Orient Overseas International Ltd., the Chinese shipping company is making a play to disrupt Europe’s dominance of global shipping. The $6.3 billion deal, expected to close in the first quarter of 2018, will make Cosco the world’s third-biggest carrier.
10CSX Corp.
TRANSPORTATION​CSX US EQUITY
EST. SALES GROWTH
2.1%
EST. EPS GROWTH
21.7%
TOTAL ASSETS
$35.86B
12-MONTH SALES
$11.55B
1-YEAR TOTAL RETURN
82.5%
Investors are betting that legendary railroad CEO E. Hunter Harrison will be able to execute yet another turnaround. Service issues, customer complaints, and regulatory scrutiny have made the transition bumpy, but the faithful are optimistic about Harrison’s precision scheduling strategy. (Update: Hunter Harrison died on December 16, from complications from a recent illness.)
11​Cypress Semiconductor Corp.
SEMICONDUCTORS​CY US EQUITY
EST. SALES GROWTH
10.6%
EST. EPS GROWTH
65.0%
TOTAL ASSETS
$3.74B
12-MONTH SALES
$2.19B
1-YEAR TOTAL RETURN
25.7%
The chipmaker is in the early stages of turning away from the declining memory-based business to become a major player in the internet of things. Sales in that space are expected to increase 20 percent this year, with even greater potential for growth next year as the smart-home market continues to expand.
12​Dangote Cement Plc
MANUFACTURING​DANGCEM NL EQUITY
EST. SALES GROWTH
4.6%
EST. EPS GROWTH
5.0%
TOTAL ASSETS
$5.2B
12-MONTH SALES
$2.35B
1-YEAR TOTAL RETURN
7.9%
Dangote is poised to make the most out of double-digit housing and infrastructure growth in sub-Saharan Africa. Already Nigeria’s largest cement maker, it’s aiming to extend its business into Sierra Leone, Tanzania, and Congo.
13​Danone SA
FOOD PRODUCTS​BN FP EQUITY
EST. SALES GROWTH
23.3%
EST. EPS GROWTH
22.6%
TOTAL ASSETS
$52.12B
12-MONTH SALES
$25.11B
1-YEAR TOTAL RETURN
13.3%
Danone’s acquisition of WhiteWave Foods Co., parent company of Silk nondairy and Horizon Organic milks, should help bolster the French company’s core dairy business. With the retirement of Chairman Franck Riboud, CEO and now-Chairman Emmanual Faber faces increased pressure to deliver.
14​Discovery Communications Inc.
ENTERTAINMENT​DISCA US EQUITY
EST. SALES GROWTH
7.9%
EST. EPS GROWTH
18.5%
TOTAL ASSETS
$16.15B
12-MONTH SALES
$6.59B
1-YEAR TOTAL RETURN
-10.1%
In a bid to stanch subscriber losses, the edutainment company reached an agreement to acquire lifestyle-focused Scripps Networks Interactive Inc. earlier this year. When that deal closes in early 2018, Discovery will become a powerhouse in unscripted programming.
15Dong Energy A/S
ENERGY​DENERG DC EQUITY
EST. SALES GROWTH
14.1%
EST. EPS GROWTH
-2.3%
TOTAL ASSETS
$20.5B
12-MONTH SALES
$9.16B
1-YEAR TOTAL RETURN
34.6%
After selling its exploration and production assets and shifting from fossil fuels to renewables, Danish Oil & Natural Gas is changing its name to Ørsted, after the physicist who discovered electromagnetism. It’s counting on the offshore wind market, where it’s already a leader.
16​DowDuPont Inc.
CHEMICALS​DWDP US EQUITY
EST. SALES GROWTH
N/M
EST. EPS GROWTH
N/M
TOTAL ASSETS
$163.46B
12-MONTH SALES
N/M
1-YEAR TOTAL RETURN
37.3%
Two years after it was announced, the Dow-DuPont merger is finally complete, and the chemicals behemoth can start breaking itself up. In a nod to investors’ concern over inefficiencies, one unit will focus on materials science, another on agriculture, and a third on specialty products.
NEW CEOS TO WATCH
22Ford Motor Co.’s Jim Hackett is a relative newbie to his industry, and 10CSX Corp.’s E. Hunter Harrison is a seasoned insider, but each faces the same challenge: steadying a flailing business. Ralph Lauren Corp.’s Patrice Louvet is the company’s second new CEO in as many years and will attempt a total revamp to appeal to younger customers who shop online. And after replacing Jim Reid-Anderson as Six Flags Entertainment Corp. CEO in early 2016, John Duffey abruptly stepped down this July—to be replaced by a returning Reid- Anderson.

HACKETT

HARRISON

LOUVET

REID-ANDERSON
17DSV A/S
LOGISTICS​DSV DC EQUITY
EST. SALES GROWTH
16.7%
EST. EPS GROWTH
35.1%
TOTAL ASSETS
$6.14B
12-MONTH SALES
$10.54B
1-YEAR TOTAL RETURN
49.1%
A year and a half after absorbing the large but inefficient UTi Worldwide Inc., transport company DSV has managed to restore and even surpass its previous operating margins. Its share price and earnings are soaring, and DSV is on the hunt for another $1 billion-plus acquisition.
18Engie SA
ENERGYENGI FP EQUITY
EST. SALES GROWTH
6.9%
EST. EPS GROWTH
5.0%
TOTAL ASSETS
$166.84B
12-MONTH SALES
$72.0B
1-YEAR TOTAL RETURN
19.9%
The French energy giant has been shifting away from fossil fuel assets and toward renewables, investing in wind and solar. So far the market has responded favorably, especially as new French President Emmanuel Macron affirms his commitment to green-energy development.
19Eni SpA
ENERGYENI IM EQUITY
EST. SALES GROWTH
16.3%
EST. EPS GROWTH
124.3%
TOTAL ASSETS
$134.47B
12-MONTH SALES
$68.13B
1-YEAR TOTAL RETURN
17.7%
The Italian oil company’s “dual exploration” strategy—solo discovery followed by shared development—has made it one of the few majors to both save cash and raise output. Its latest offshore site, the Zohr field off Egypt’s coast, will start producing at the end of this year, a record-fast 22 months after discovery.
BIG NUMBER: $25B
INVESTMENT BY ENI IN ITALY OVER THE NEXT FOUR YEARS ON GREEN TRANSFORMATION PROJECTS, INCLUDING INCREASED PRODUCTION OF GREEN DIESEL
20​Experian Plc
BUSINESS SERVICES​EXPN LN EQUITY
EST. SALES GROWTH
9.5%
EST. EPS GROWTH
13.1%
TOTAL ASSETS
$7.69B
12-MONTH SALES
$4.34B
1-YEAR TOTAL RETURN
-1.9%
With greater attention on credit reporting after the massive Equifax hack, Experian and its peer, TransUnion, are facing the potential for increased regulation. Calls for free security freezes and more access to credit reports could limit their ability to sell credit-­monitoring services.
21Fannie Mae | Freddie Mac
FINANCIALS​FNMA US EQUITYFMCC US EQUITY
EST. SALES GROWTH
N/M
EST. EPS GROWTH
N/M
TOTAL ASSETS
$3.31T, $2.02T
12-MONTH SALES
$111.89B, $71.76B
1-YEAR TOTAL RETURN
60.6%, 58.8%
After years of funneling profits to the U.S. Department of the Treasury, the two government-sponsored mortgage backers will be forced to operate with a net worth of zero beginning in 2018. Even a small loss would require them to go back to Treasury and again borrow from taxpayers—a political disaster.
22Ford Motor Co.
AUTOMOBILES​F US EQUITY
EST. SALES GROWTH
-0.1%
EST. EPS GROWTH
5.9%
TOTAL ASSETS
$247.47B
12-MONTH SALES
$142.94B
1-YEAR TOTAL RETURN
1.3%
New CEO Jim Hackett will have to bring the venerable automaker up to speed on electric and autonomous vehicle development or face an investor revolt. Third-quarter earnings benefited from a boost in sales after recent hurricanes damaged vehicles, yet full-year profit is expected to decline.
“[TECH] COMPANIES ARE FLUSH WITH CASH, FLUSH WITH TALENT, AND FLUSH WITH COMPUTER SCIENCE. BUT WE UNDERSTAND THE WAY PEOPLE WANT TO LIVE AND BREATHE VEHICLES, AND THAT’S THE COMPETITIVE ADVANTAGE WE’RE GOING TO CONTINUE TO OWN HERE.” —FORD CEO JIM HACKETT
23Gap Inc.
RETAILGPS US EQUITY
EST. SALES GROWTH
0.9%
EST. EPS GROWTH
2.3%
TOTAL ASSETS
$7.62B
12-MONTH SALES
$15.47B
1-YEAR TOTAL RETURN
23.7%
The company’s namesake brand has struggled to return to its 1990s peak, but a faster, more responsive product pipeline and fewer discounts have helped Gap rebound. With Old Navy flourishing and Athleta activewear selling briskly, a turnaround may finally be under way.
24Great Wall Motor Co.
AUTOMOBILES​2333 HK EQUITY
EST. SALES GROWTH
18.1%
EST. EPS GROWTH
11.1%
TOTAL ASSETS
$12.28B
12-MONTH SALES
$14.41B
1-YEAR TOTAL RETURN
31.2%
The Chinese automaker’s potential tie-up with BMW AG may be too little, too late. An earlier strategy of refusing to team up with foreign brands may have reached its limit. Although it still dominates the country’s SUV market, Great Wall faces decreased market share as competitors are creeping in.
CAN RETAIL TURN AROUND?
Declining foot traffic and intense pricing pressure have gutted retail in recent years. Among companies that have struggled the most, 23Gap Inc. is well-positioned to start regaining strength. Others, such as Macy’s Inc., still have too many underperforming stores, and 2018 will likely bring another round of closures. On the bright side, Macy’s owns a substantial number of its stores, so shedding real estate will produce cash flow. The store chain is counting on in-house brands—including beauty products from Bluemercury, which Macy’s acquired in 2016—and the expansion of its discount Backstage outlets to attract more dollars. L Brands Inc. has responded less well to pressures. Strength at its younger-skewing Pink lingerie and Bath & Body Works brands hasn’t helped Victoria’s Secret: Poor sales at its stores have continued to drag down the bottom line, even after excluding the negative effect of its exit from swimwear and apparel.
25Hertz Corp.
CAR RENTALHTZ US EQUITY
EST. SALES GROWTH
2.5%
EST. EPS GROWTH
72.3%
TOTAL ASSETS
$22.43B
12-MONTH SALES
$8.69B
1-YEAR TOTAL RETURN
-57.2%
With the brand’s 2014 accounting scandal still casting a shadow over its finances, Hertz is struggling against competition from Uber Technologies Inc. and Lyft Inc., as well as automakers. The company shrank its rental car fleet this year, which helped shore up profitability even as domestic sales volume continued to fall.
26INC Research Holdings Inc.
HEALTH CAREINCR US EQUITY
EST. SALES GROWTH
191.2%
EST. EPS GROWTH
16.0%
TOTAL ASSETS
$1.33B
12-MONTH SALES
$1.03B
1-YEAR TOTAL RETURN
27.7%
INC Research’s May acquisition of InVentiv Health vaults the company from a niche developer to the industry’s No. 2 contract clinical researcher. The question now is whether it can effectively integrate InVentiv’s operations. Both companies grew slowly in 2017; they’re counting on increased efficiencies to speed things up.
27Intu Properties Plc
REAL ESTATEINTU LN EQUITY
EST. SALES GROWTH
-7.2%
EST. EPS GROWTH
11.6%
TOTAL ASSETS
$14.4B
12-MONTH SALES
$851.2M
1-YEAR TOTAL RETURN
-10.9%
As U.K. retailers faced competition from online sales, the mall operator neglected upgrading its properties so it could focus on buying more. The strategy pushed its market value down almost 40 percent below the value of its assets. A newly announced upgrade program may salvage some malls, but vacancies are likely to climb.
28Jacobs
INFRASTRUCTURE​JEC US EQUITY
EST. SALES GROWTH
6.6%
EST. EPS GROWTH
12.5%
TOTAL ASSETS
$7.24B
12-MONTH SALES
$10B
1-YEAR TOTAL RETURN
12.5%
The engineering company is poised for a turnaround in 2018 following three years of declining sales. Two acquisitions, of a cybersecurity company and a leading U.K. infrastructure design firm, indicate that Jacobs is trying to anticipate customers’ future needs.
29Kraft Heinz Co.
FOOD & BEVERAGE​KHC US EQUITY
EST. SALES GROWTH
2.4%
EST. EPS GROWTH
7.6%
TOTAL ASSETS
$119.4B
12-MONTH SALES
$26.1B
1-YEAR TOTAL RETURN
-6.1%
Having wrung all the efficiencies it can from its 2015 merger with Kraft, the conglomerate is on the hunt again for sources of growth. Although it walked away from a $143 billion bid for Unilever Plc, the overture signaled that Kraft Heinz wants to diversify beyond packaged foods—and is willing to spend big to do so.
STAT: 27.5% - KRAFTHEINZ’S TRAILING 12-MONTH ADJUSTED OPERATING INCOME AS OF JUNE 30, 2017
30Lundin Petroleum AB
ENERGY​LUPE SS EQUITY
EST. SALES GROWTH
2.6%
EST. EPS GROWTH
N/M
TOTAL ASSETS
$5.11B
12-MONTH SALES
$1.59B
1-YEAR TOTAL RETURN
30.3%
The Swedish driller focused entirely on Norway boasts lower operating costs and the best growth prospects among European independent exploration and production companies. It’s an active explorer in the Barents Sea, which holds multibillion-barrel resource potential.
31​MercadoLibre Inc.
E-COMMERCE​MELI US EQUITY
EST. SALES GROWTH
54.3%
EST. EPS GROWTH
9.2%
TOTAL ASSETS
$1.51B
12-MONTH SALES
$1.07B
1-YEAR TOTAL RETURN
62.4%
The so-called Amazon of South America had to stretch this year to begin offering free shipping in Brazil, Chile, Colombia, and Mexico, hoping the incentive would boost e-commerce. Early signs point to success, but the investment and new competition from Amazon mean margins will get worse before they get better.
32Motor Oil Hellas
ENERGYMHZ GR EQUITY
EST. SALES GROWTH
8.6%
EST. EPS GROWTH
-25.4%
TOTAL ASSETS
$3.25B
12-MONTH SALES
$8.11B
1-YEAR TOTAL RETURN
125.8%
With the highest overall refinery complexity in the Mediterranean—allowing it to process cheaper heavy crude oil and giving it an above-average refining margin—the company is well-positioned to take advantage of low crude prices.
33Naver Corp.
INTERNET MEDIA035420 KS EQUITY
EST. SALES GROWTH
18.7%
EST. EPS GROWTH
30.2%
TOTAL ASSETS
$6.29B
12-MONTH SALES
$3.77B
1-YEAR TOTAL RETURN
-9.8%
South Korea’s No. 1 internet search provider is copying chapters of Google’s playbook, venturing into artificial intelligence and cloud services. These investments may hold back profit growth in the near term, but the company is betting investors will recognize their long-term potential.
34​Nintendo Co.
CONSUMER ELECTRONICS/GAMING​7974 JP EQUITY
EST. SALES GROWTH
78.8%
EST. EPS GROWTH
-10.0%
TOTAL ASSETS
$13.1B
12-MONTH SALES
$5.28B
1-YEAR TOTAL RETURN
33.2%
The Nintendo Switch gaming console is an even bigger hit than the company had hoped for, with sales on track to exceed its target of 13 million units. The success could help attract third-party game developers to the platform; more games would boost consumer interest next year.
35Palo Alto Networks Inc.
CYBERSECURITY​PANW US EQUITY
EST. SALES GROWTH
25.1%
EST. EPS GROWTH
26.2%
TOTAL ASSETS
$3.44B
12-MONTH SALES
$1.76B
1-YEAR TOTAL RETURN
-3.4%
The growing frequency of cyberattacks has been a boon to digital security companies, and to Palo Alto Networks in particular. Its latest products integrate with users’ existing software, allowing for maximum flexibility, and the company has also begun selling existing customers more add-on services.
36​Patterson-UTI Energy Inc.
ENERGY​PTEN US EQUITY
EST. SALES GROWTH
119.4%
EST. EPS GROWTH
75.7%
TOTAL ASSETS
$5.4B
12-MONTH SALES
$1.34B
1-YEAR TOTAL RETURN
-1.6%
As onshore drilling margins have dropped, Patterson-UTI has responded by diversifying. Its well completion business now outperforms its active rigs, and the purchase of directional driller MS Energy Services will help the company stay competitive.
37PayPal Holdings Inc.
ONLINE PAYMENTS​PYPL US EQUITY
EST. SALES GROWTH
23.4%
EST. EPS GROWTH
25.2%
TOTAL ASSETS
$35.29B
12-MONTH SALES
$11.76B
1-YEAR TOTAL RETURN
53.1%
The original digital-payments company has forged partnerships with former frenemies, including Apple, Facebook, Google, and Samsung. PayPal usage is rising among shoppers and merchants thanks to new capabilities such as One Touch mobile payments, adding to the company’s momentum.
38PRA Health Sciences Inc.
HEALTH CAREPRAH US EQUITY
EST. SALES GROWTH
24.4%
EST. EPS GROWTH
32.2%
TOTAL ASSETS
$2.41B
12-MONTH SALES
$1.69B
1-YEAR TOTAL RETURN
38.1%
Two new strategic partnerships with top-20 global pharma companies should help the contract researcher continue its five-year streak of double-digit growth. A growing order backlog shows PRA still has plenty of room to expand.
39​Qualcomm Inc.
SEMICONDUCTORS​QCOM US EQUITY
EST. SALES GROWTH
-2.9%
EST. EPS GROWTH
-24.7%
TOTAL ASSETS
$64.37B
12-MONTH SALES
$23.44B
1-YEAR TOTAL RETURN
-13.3%
With its core technology-licensing business under fire from Apple Inc. and regulators, the company filed a countersuit against the iPhone maker in a Chinese patent court. Apple and others have already stopped paying the company, meaning Qualcomm faces an existential threat to its royalty business model.
40RWE AG
UTILITIES​RWE GR EQUITY
EST. SALES GROWTH
11.9%
EST. EPS GROWTH
21.1%
TOTAL ASSETS
$86.09B
12-MONTH SALES
$49.18B
1-YEAR TOTAL RETURN
47.1%
The German utility got a boost this year from recovering coal prices. But an expected increase in Chinese coal production, resulting from a decline in global prices, will put more pressure on the company and other European power providers.
TECH LITIGATION TO WATCH
39Qualcomm Inc. isn’t the only company embroiled in high-stakes legal battles.
Western Digital vs. Toshiba
Western Digital Corp. spent the better part of 2017 trying to prevent a sale of Toshiba Corp.’s memory chip unit. In several pending legal actions—lawsuits and arbitration proceedings—it’s claiming that a sale would violate a series of agreements underlying a joint venture between WD’s SanDisk subsidiary and Toshiba. Toshiba plans to sell its flash memory unit to a consortium led by Bain Capital LP for about $18 billion, hoping the sale will offset massive losses in its U.S. nuclear division. The company must complete the deal by March 2018 to avoid being delisted from the Tokyo Stock Exchange. The various cases likely won’t hold up the sale, but they could reduce the price by 5 percent if a court decides that Toshiba must exclude the SanDisk joint venture from the deal.
BlackBerry vs. Nokia
BlackBerry Ltd. sued Nokia Oyj in federal court in February, alleging infringement of 11 patents covering key innovations in LTE wireless technologies. Nokia, BlackBerry says, has unlawfully incorporated the technology in base station products used by T-Mobile U.S. Inc. and AT&T Inc. for their LTE networks. BlackBerry isn’t seeking to block use of the patents—it just wants to be paid for them. Under Chief Executive Officer John Chen, the Canadian company is focusing on patent licensing after moving away from hardware and device sales. The outcome of these actions could affect the strength of BlackBerry’s licensing business, which posted $56 million in revenue in the second quarter—a little less than 24 percent of its total.
41​Seagate Technology Plc
HARDWARE​STX US EQUITY
EST. SALES GROWTH
-6.9%
EST. EPS GROWTH
-8.6%
TOTAL ASSETS
$9.26B
12-MONTH SALES
$10.77B
1-YEAR TOTAL RETURN
-2.1%
Rapid changes in the data storage world have led Seagate to scale back sales of smaller, less profitable hard drives and focus on high-capacity, non-PC enterprise drives. Substantial cost-cutting and stock buybacks are helping earnings-per-share growth, but sales are under threat from solid-state drives.
42China Shenhua Energy Co.
ENERGY​601088 CH EQUITY
EST. SALES GROWTH
3.3%
EST. EPS GROWTH
-6.5%
TOTAL ASSETS
$90.5B
12-MONTH SALES
$33.0B
1-YEAR TOTAL RETURN
59.2%
Shenhua’s merger with China Guodian Corp.—the consolidation of the country’s two largest coal and power producers—stands to boost efficiency and reduce earnings volatility. With pollution an increasing concern for the Chinese government, Shenhua is also investing in noncoal businesses.
43Soho China Ltd.
REAL ESTATE410 HK EQUITY
EST. SALES GROWTH
9.7%
EST. EPS GROWTH
N/M
TOTAL ASSETS
$10.9B
12-MONTH SALES
$281M
1-YEAR TOTAL RETURN
23.6%
Responding to the weak outlook for its traditional office leasing business, this Chinese landlord announced in August that it would start expanding its co-working spaces beyond Beijing and Shanghai.
44Spark Therapeutics Inc.
BIOTECHNOLOGY​ONCE US EQUITY
EST. SALES GROWTH
268.7%
EST. EPS GROWTH
11.2%
TOTAL ASSETS
$276.6M
12-MONTH SALES
$20.36M
1-YEAR TOTAL RETURN
31.6%
The drugmaker is expected to receive the U.S. Food and Drug Administration’s first-ever approval for a gene therapy drug, Luxturna, which treats a hereditary retinal disorder. Although the medication is Spark’s first product, the company’s management has ample experience in therapies for rare diseases.
45​Stericycle Inc.
WASTE MANAGEMENT​SRCL US EQUITY
EST. SALES GROWTH
1.6%
EST. EPS GROWTH
5.5%
TOTAL ASSETS
$7.04B
12-MONTH SALES
$3.61B
1-YEAR TOTAL RETURN
-11.8%
Although cash flow is strong for the world’s leading medical waste disposal business, debt remains a problem after its acquisition of the document destruction company Shred-it two years ago. That, plus pricing pressure from competitors, led the company to project five-year growth below its typical double-digit rates.
46Telstra Corp.
TELECOMTLS AU EQUITY
EST. SALES GROWTH
9.9%
EST. EPS GROWTH
6.9%
TOTAL ASSETS
$32.3B
12-MONTH SALES
$21.3B
1-YEAR TOTAL RETURN
-13.6%
Australia’s largest telecom company has ended its practice of paying out almost all profits as dividends, saying it will invest in technology instead. The move shows Telstra is bracing for competition, with rival TPG Telecom Ltd. entering the wireless market and state-owned NBN Co. taking over Australia’s fixed-broadband network.
47Tesla Inc.
AUTOMOBILES​TSLA US EQUITY
EST. SALES GROWTH
75.5%
EST. EPS GROWTH
19.9%
TOTAL ASSETS
$26.04B
12-MONTH SALES
$10.06B
1-YEAR TOTAL RETURN
89.5%
The much anticipated Model 3 missed third-quarter production estimates by a wide margin. When sweeping layoffs followed in October, the company said they were unrelated to business. CEO Elon Musk has promised improvements, and Tesla’s market value is still in the range of General Motors Co.’s.
48United Technologies Corp.
AEROSPACE​UTX US EQUITY
EST. SALES GROWTH
5.7%
EST. EPS GROWTH
1.9%
TOTAL ASSETS
$94.8B
12-MONTH SALES
$58.3B
1-YEAR TOTAL RETURN
12.7%
United Technologies’ pending $30 billion acquisition of Rockwell Collins Inc. will create the world’s largest aerospace supplier, giving the company increased scale and pricing power. That will be key to protecting its profitability as Airbus SE and Boeing Co. pressure United Technologies’ supply chain.
IPOS TO WATCH
1 HEALTHINEERS
Siemens AG confirmed earlier this year that it would wait until 2018 for a public listing of its health-care business, known as Healthineers. At the time of the original announcement in March 2016, a Bloomberg Intelligence analysis valued the IPO at €30 billion to €40 billion ($32 billion to $42 billion). Healthineers, which makes medical imaging equipment, is one of Siemens’s most profitable divisions.
2 SAUDI ARAMCO

The expected largest IPO ever, announced in 2016, has been thrown off course by leadership changes at Saudi Arabia’s state-owned oil company. In mid-October, the nation’s oil minister reassured potential investors that plans were “on track” to list close to 5 percent of the company simultaneously in Riyadh and an international market in the second half of 2018, which could raise $100 billion, by one estimate.
3 DEUTSCHE ASSET MANAGEMENT INC.
After a rocky 2016 that saw investors questioning the bank’s financial strength and included a $7.2 billion settlement with the U.S. Department of Justice over its pre-recession dealings in mortgage-backed securities, Deutsche Bank AG is back to raising capital. Part of its plan involves an IPO of its asset management division, which has performed well even as the rest of the company has struggled. Analysts expect the listing to come in the first half of 2018.
4 AIRBNB INC.
Among the many 2018 IPOs expected from Silicon Valley “unicorns”—including Dropbox, Uber, Palantir, and Slack—and New York-based cousin BuzzFeed, Airbnb’s offering is the most likely to be successful. Although it hit some roadblocks thrown up by the hotel industry and housing regulators, Airbnb has begun to expand globally, particularly in Asia and Latin America. In early 2017, CEO Brian Chesky said the company was about “halfway through … as far as being ready to go public.”
5 SPOTIFY LTD.
Stock in the Swedish music streaming behemoth is expected to start trading in 2018, but investors may not see an IPO. Spotify has been discussing plans with the U.S. Securities and Exchange Commission to list directly on the New York Stock Exchange. The company would transfer its existing shares, now held by executives, private investors, and employees, to the exchange, rather than creating new ones to sell to the public. The move wouldn’t raise any money, but with 60 million paying subscribers, Spotify has plenty of cash, and a direct listing, unlike an IPO, would allow current owners to sell their stock immediately.
49Wells Fargo & Co.
BANKING​WFC US EQUITY
EST. SALES GROWTH
1.3%
EST. EPS GROWTH
5.8%
TOTAL ASSETS
$1.93T
12-MONTH SALES
$90.16B
1-YEAR TOTAL RETURN
15.3%
Wells Fargo tried to move beyond the 2016 fake accounts scandal by restructuring its retail banking division and offering an effectively bottomless pool of damage payments to customers whose credit suffered. Revenue growth and cost-cutting should help stabilize the business next year.
50​Williams-Sonoma Inc.
RETAILWSM US EQUITY
EST. SALES GROWTH
4.0%
EST. EPS GROWTH
8.1%
TOTAL ASSETS
$2.48B
12-MONTH SALES
$5.1B
1-YEAR TOTAL RETURN
2.1%
Although it’s fending off increased competition from online retailers including Wayfair Inc., West Elm continues to be the high performer in Williams-Sonoma’s stable of lifestyle brands. The furniture brand introduced design services this year and is continuing its push into the commercial and hospitality markets.
METHODOLOGY
Figures were compiled or calculated by Bloomberg’s Global Data division from the most recent company and/or broker reports as of Sept. 15 unless otherwise noted. Estimated sales growth: the percentage change in sales for the next 12 months, vs. the previous 12 months, based on Bloomberg surveys of analysts. Estimated EPS growth: the percentage change in earnings per share for the next 12 months, vs. the previous 12 months, based on Bloomberg surveys of analysts. Figures are in U.S. dollars. N/M = not meaningful.
(UPDATE: HUNTER HARRISON DIED ON DECEMBER 16, FROM COMPLICATIONS FROM A RECENT ILLNESS.
AN EARLIER VERSION OF THIS GRAPHIC INCORRECTLY INCLUDED A PHOTO OF THE TESLA MODEL X INSTEAD OF THE TESLA MODEL 3.)
ADVANCED MICRO DEVICES INC. - ANAND SRINIVASAN; ALASKA AIR GROUP GEORGE FERGUSON; AMC ENTERTAINMENT HOLDINGS INC. - GEETHA RANGANATHAN; AT&T INC. - JOHN BUTLER; BASF SE - JASON MINER; BOOHOO.COM PLC - SHAN LIU; CABOT OIL & GAS CORP. – BRANDON BARNES, VINCENT G. PIAZZA; CHINA MERCHANTS BANK - FRANCIS CHAN; COSCO SHIPPING HOLDINGS CO.– RAHUL KAPOOR; CSX CORP. - LEE KLASKOW; CYPRESS SEMICONDUCTOR CORP. - WOO JIN HO; DANGOTE CEMENT PLC - SONIA BALDEIRA; DANONE SA - DUNCAN FOX; DISCOVERY COMMUNICATIONS INC. - JOSHUA YATSKOWITZ, PAUL SWEENEY; DONG ENERGY A/S - ELCHIN MAMMADOV; DOWDUPONT INC. - JASON MINER; DSV A/S - TALON CUSTER; ENGIE SA - ELCHIN MAMMADOV; ENI SPA - PHILIPP CHLADEK; EXPERIAN - AND MENTION TRANSUNION - NATHAN DEAN; FANNIE MAE AND FREDDIE MAC - JONATHAN ADAMS, BEN ELLIOTT; FORD MOTOR CO. - JOEL LEVINGTON; GAP INC. - POONAM GOYAL; GREAT WALL MOTOR CO. - STEVE MAN; HERTZ CORP. - JOEL LEVINGTON; INC RESEARCH HOLDINGS INC. - JUSTIN BOWERS; INTU PROPERTIES PLC– SUSAN MUNDEN; JACOBS - SONIA BALDEIRA; KRAFT HEINZ CO. - KENNETH SHEA; LUNDIN PETROLEUM AB - WILL HARES; MERCADOLIBRE INC. - JULIE CHARIELL; MOTOR OIL HELLAS - SALIH YILMAZ; NAVER CORP. - ANTHEA LAI; NINTENDO CO. - JITENDRA WARAL; PALO ALTO NETWORKS INC. - MANDEEP SINGH, ANDREW EISENSON; PATTERSON-UTI ENERGY INC. - MARK ROSSANO; PAYPAL HOLDINGS INC. - DAVID RITTER; PRA HEALTH SCIENCES INC. - JUSTIN BOWERS; QUALCOMM INC. - ANAND SRINIVASAN; RWE AG - ELCHIN MAMMADOV; SEAGATE TECHNOLOGY - ANAND SRINIVASAN; CHINA SHENHUA ENERGY CO. - MICHELLE LEUNG; SOHO CHINA LTD. - KRISTY HUNG; SPARK THERAPEUTICS INC. - ELIZABETH KRUTOHOLOW; STERICYCLE INC. - SCOTT J. LEVINE; TELSTRA CORP. - ANTHEA LAI; TESLA INC. - KEVIN TYNAN; UNITED TECHNOLOGIES CORP. - DOUGLAS ROTHACKER; WELLS FARGO & CO. - ALISON WILLIAMS; WILLIAMS SONOMA INC. - SEEMA SHAH; GLOBAL DATA - DAVID RUSSELL
EDITED BY DIMITRA KESSENIDES AND JILLIAN GOODMAN

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