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Morning Commentary


By Charles Payne, CEO & Principal Analyst
2/20/2020 9:33 AM

Going into the close on Wednesday, investors were enjoying a solid earnings season, which lends credence to the idea of a strong ramp of growth for the rest of the year. 

4Q 2019 Earnings Season

410 companies reported:


Total: $2,962,100,000,000

Best Sectors


Total: $345,500,000,000

Best Sector

After the close, earnings results from various companies and industries were posted:

Pioneer Natural Resources (PXD) posted strong results the same day rival Concho Resources (CXO) led oil names higher, and after posting strong results:

The company says it has the best performing wells in the Permian Basin (PBT), pointing to $384 million in free cash flow management and raising its dividend to $0.55, +185%. Last quarter, the company returned $780 million to shareholders via dividend payouts and stock buybacks.

Other Names Climbing Off the Canvas

Avis Budget Group (CAR)

The company posted record results driven by strong revenue, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the Americas. Those numbers are a result of 26,509,000 rental days, +8% from one year ago.

Stamps.com (STMP)

On February 22, 2019, the company did the unthinkable when it kicked the U.S. Postal Service to the curb, saying it needed to shed the exclusive relationship to work with other carriers, including the United Parcel Service (UPS), FedEx (FDX), and Amazon (AMZN). The news sent the stock down 50% in a single session. Today, it will get a big chunk of that back.

Zillow Group (ZG), you must salute the company CEO

On February 21, 2019, management announced Zillow 2.0. At that point, the company started to flip houses. In many ways, it made sense that the company with all the great information would be well-positioned to take advantage, but house flipping didn’t make Wall Street happy…until last night.

Zillow posted record revenue of $943.9 million, +158% from one year ago, driven by its Home Division with $603.2 million in revenue, +52%. Mobile traffic on Apps and websites climbed to 173 million, average monthly users +10%, and the company finished the quarter with $2.4 billion in cash.

House Flipping

Portfolio Approach

We put money to work in our model portfolio, which leaves with little cash. We are lowering Cash to 1 and increasing Technology to 3. 

Today’s Session

Signs of Manufacturing Rebound Continues

How will your firm’s total production for the first quarter of 2020 compare with that of the last quarter of 2019?

% of firms expecting an increase: 62.0

If you expect to increase production in the next quarter, by what means will this be accomplished?

% of firms

Hiring additional workers


Increasing work hours of current staff, without hiring additional workers


Increasing productivity of current staff, without hiring additional workers




Philly Fed biggest beat ever!

Chart 1






Man, you gotta love this "Obama" economy! 😂

Rob on 2/20/2020 9:32:26 PM
I do enjoy your show and watch it faithfully, when I cannot watch it live I record it. Thanks for doing such a great job. Bloomberg just had an ad on last evening on Fox broadcasting saying that he was the mayor who supervised the aftermath of 911, We all know that it was Rudi. I was 8 blocks from the towers and saw everything after the first plane hit from my office window. I commuted after the event, wearing a facemask from the subway to my office, after 1 week, Rudi had them washing down the streets several times a day to keep the dust down. Bloomberg did not get elected until 2004, 3 years later.

Paula Holt on 2/21/2020 9:54:56 AM
Thank you Paula these ads are so disingenuous.  He didn't support Obama or Obamacare but has created ads to make them look like best buddies.  That debate was a disaster and democrats have to decide if they are a party of ideas or simply focused on a singular goal of getting rid of trump.  Bernie is the only one that has a belief system although it romanticizes Russia and communism.   

Charles Payne on 2/21/2020 10:55:34 AM

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