|By PR Newswire||
|July 5, 2013 09:30 AM EDT||
CHICAGO, July 5, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Desarrolladora Homex, SAB de CV (NYSE:HXM-Free Report), Grupo Aeroportuario del Pacifico S.A.B. de CV (NYSE:PAC-Free Report), America Movil S.A.B. de C.V. (NYSE:AMX-Free Report), CEMEX, S.A.B. de C.V. (NYSE:CX-Free Report) and MDC Holdings Inc. (NYSE:MDC-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Fed Taper Mayhem: 2 Mexican Stocks to Buy
They say, "When the U.S. sneezes, the rest of the world catches a cold," and this seems to have proved true for an emerging market like Mexico, the second largest economy in Latin America. As the Fed kept faltering to taper QE, the Mexican peso witnessed a roller-coaster ride in both the bond and stock markets.
As things settled down after a week-long frenzy, it is time now to cherry pick some Mexican stocks. But before we zero-in on which ones to buy, let's have a recap of the vagaries in the Mexican economy.
The Rise of the Mexican Peso
With its close ties to the U.S., Mexican assets – like the relatively stable high-yielding government bonds – have been one of the most lucrative investment propositions for investors to leverage cheap loans in developed countries. Consequently, there was a significant inflow of funds into the economy as foreign holdings of peso debt amplified six-fold since 2009 to $1.75 trillion pesos ($136 billion) in Apr 2013.
Booming investor confidence triggered by a highly liquid market and hands-off attitude by officials steered the peso to a 4.3% return in 2013 till mid-May – the best performance among 16 major currencies tracked by Bloomberg. The economy was further buoyed by a reform push by the newly-formed government and a record-low benchmark interest rate of 4% by the Bank of Mexico (Banco de Mexico). Bonds and stocks kept scaling newer highs as Mexico gradually became the blue-eyed boy among investors.
The Ignominious Fall
On Jun 19, Fed Chairman Ben Bernanke announced his intentions to start tapering and gradually phase out its $85 billion monthly bond-buying program by 2014. Although the announcement indicated an overall improvement in the U.S. financial system and dialed down the need for any additional stimulus, it ruffled the dynamics of several economies, including Mexico.
This led to a near stampede as foreign investors rushed for the exit door and some of the worst sell-offs of Mexican bonds since 2010. With speculations being rife about Fed tapering since early May, the Mexican peso plummeted from below 12 per dollar to over 13, while the benchmark ten-year bonds rose from a historic low of 4.4% to 6.2%. Even Mexican Bolsa IPC Index, the Mexican Stock Exchange, had an uncharacteristically sharp fall to close at a 52-week low.
A drastic fall in the currency and heavy outflow of capital have catapulted expectations of a further lowering of interest rates for a second time this year. At the same time, experts believe that in order to prevent further fall, the government can bring in some radical reforms by opening up the energy sector, which is considered to be one of the vital pillars for augmenting the long-term growth potential of the country.
On the other hand, some industry observers opine that subsequent Fed tapering could be a "winner's curse" for Mexico as they largely depend on the U.S. economy, which account for almost 80% of its total exports. So an overall improvement in the underlying growth factors for its northern neighbor would indeed work in favor of long-term gains. Thus, would it be fair to wish to delay the inevitable for short-term profit?
As markets have more or less stabilized, with reports of weaker U.S. GDP growth forcing the Fed to reconsider its decision and continue with the bond-buying program, it is deja vu for investors all over again. In this context, top Mexican stocks with attractive valuation metrics backed by a solid Zacks Rank methodology include home developer Desarrolladora Homex, SAB de CV (NYSE:HXM-Free Report) and airport manager Grupo Aeroportuario del Pacifico S.A.B. de CV (NYSE:PAC-Free Report).
Both of these stocks hold a Zacks Rank #2 (Buy). While Desarrolladora Homex has a forward P/E and long-term earnings expectation of 1.52 and 13.15%, respectively; Grupo Aeroportuario has respective tallies of 19.67 and 9.37%.
We also suggest a couple of Zacks Rank #3 (Hold) stocks – America Movil S.A.B. de C.V. (NYSE:AMX-Free Report) and CEMEX, S.A.B. de C.V. (NYSE:CX-Free Report) – as they are expected to post robust earnings growth of 8.34% and 18.98%, respectively.
Even some hedge funds are bullish on the Mexican peso and anticipate the recently-found optimism to continue through year's end. As fundamentals look strong, the market is getting flocked by a huge pool of investors, creating short-term noises and long-term opportunities. Only time will tell whether such investor confidence is justifiable or not.
MDC Holdings Upped to Strong Buy
On Jul 2, Zacks Investment Research upgraded MDC Holdings Inc. (NYSE:MDC-Free Report) to a Zacks Rank #1 (Strong Buy) on the back of growing momentum in the homebuilding market and a bright industry outlook for the year.
Why the Upgrade?
MDC Holdings is benefiting from the increase in demand for new homes, a fact supported by most of the housing data released recently.
The housing market has seen significant upside in new home construction activity, which is fueled by the increase in demand for new homes. Despite recent increase in mortgage rates, the housing market continues to witness momentum, indicating stable recovery. Increased affordability due to higher rentals is boosting demand. Supply, however, remains limited due to low inventories, both for new and existing homes. Home prices have thus moved up sharply with increased market demand and limited supply.
Most homebuilders like MDC Holdings are thus, witnessing increasing traffic levels due to heightened consumer demand. Majority of the companies are witnessing significant growth in both volumes and average selling prices. MDC Holdings has recorded high double digit earnings surprises for the past seven quarters. Its average surprise for the past four quarters is 74.42%.
The strong housing momentum has also been reflected in MDC Holdings' solid first quarter results (ended Mar 31) reported on May 2, 2013. Its first quarter fiscal 2013 adjusted earnings per share and total revenue beat the Zacks Consensus Estimate and the prior-year quarter levels by a wide margin. The beat was driven by high double digit year-over-year growth in new home orders, backlogs, home closings and margin expansion. The company was also able to increase average selling price of the homes sold by 9%.
MDC Holdings is due to report its fiscal second quarter 2013 results in late Jul/early Aug. The Zacks Consensus Estimate at the moment is pegged at 55 cents per share.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
SOURCE Zacks Investment Research, Inc.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 29, 2016 10:00 PM EDT Reads: 1,802
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera M...
Sep. 29, 2016 09:45 PM EDT Reads: 3,122
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Sep. 29, 2016 08:45 PM EDT Reads: 2,207
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
Sep. 29, 2016 08:45 PM EDT Reads: 1,544
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Sep. 29, 2016 06:15 PM EDT Reads: 3,677
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
Sep. 29, 2016 06:00 PM EDT Reads: 1,536
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Sep. 29, 2016 05:15 PM EDT Reads: 2,854
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Sep. 29, 2016 05:15 PM EDT Reads: 1,582
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Sep. 29, 2016 04:45 PM EDT Reads: 2,789
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Sep. 29, 2016 04:45 PM EDT Reads: 3,440
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 29, 2016 04:30 PM EDT Reads: 1,341
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Sep. 29, 2016 04:30 PM EDT Reads: 1,958
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Sep. 29, 2016 04:00 PM EDT Reads: 479
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Sep. 29, 2016 04:00 PM EDT Reads: 2,397
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Sep. 29, 2016 03:30 PM EDT Reads: 1,628