News Feed Item

The Zacks Analyst Blog Highlights:United Parcel Services, United States Steel, Carpenter Technology, Companhia Siderurgica Nacional and ArcelorMittal

CHICAGO, Jan. 21, 2014 /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 the United Parcel Services Inc. (NYSE:UPS-Free Report), United States Steel Corp. (NYSE:X-Free Report), Carpenter Technology Corporation (NYSE:CRS-Free Report), Companhia Siderurgica Nacional (NYSE:SID-Free Report) and ArcelorMittal (NYSE:MT-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

UPS Hints at Weak Q4

Major freight forwarding carrier United Parcel Services Inc. (NYSE:UPS-Free Report) announced that a compressed peak season, a boom in online shopping and unfavorable December weather are going to hurt its fourth quarter 2013 profits.

The company's fourth quarter preliminary results point to diluted earnings per share (EPS) of $1.25, which is way below the Zacks Consensus Estimate of $1.42.

For full-year 2013, the company expects adjusted diluted EPS of $4.57, lower than $4.65–$4.85 guided in July 2013. The forecast is also way below Zacks Consensus Estimate of $4.75. United Parcel will report its earnings on Jan 30, before market opens.

A late Thanksgiving Day cut short the holiday shopping season. Then the last-minute online shopping surge just before Christmas created a menace for the company. The express carrier hired 85,000 temporary employees, 30,000 more than planned, to maintain service standards and commitments. What followed was a snowball effect that ended up in higher costs.

The Atlanta-based company also cited a harsh weather with heavy snowfall as the primary reason for the disappointing fourth quarter.

However, on Dec 23, United Parcel delivered 31 million packages, which was 13% more than last year's peak day and 7.5% ahead of its expectation. Additionally, the company is optimistic about 2014 and expects a 10–15% surge in diluted earnings, which is in tune with its long-term target.

The online shopping craze and recent rate hikes within the U.S., Canada, and Puerto Rico and among these markets are expected to benefit the company's 2014 results. Thus despite a weak guidance for the full year, these positives hold the stock from a major slide. It declined a mere 0.6% on Friday's trade on Nasdaq.

We also see reflections of a sluggish worldwide economic condition in the reduced earnings guidance for 2013. However, World Bank's recent global GDP forecast of 3.2% bodes well for the company as the success of logistics companies depends upon worldwide economic development.

U.S. Steel Upgraded to Strong Buy

Zacks Investment Research has upgraded steel company United States Steel Corp. (NYSE:X-Free Report) to a Zacks Rank #1 (Strong Buy).

Why Upgraded?

Though U.S. Steel incurred loss in third-quarter 2013, as reported on Oct 28, due to a hefty impairment charge, adjusted loss was narrower than the Zacks Consensus Estimate. The company has delivered positive earnings surprises in three out of the last four quarters with an average beat of 15.47%.  U.S. Steel's long-term estimated earnings per share growth rate is 14.4%.

U.S. Steel's Flat-rolled segment posted a profit of $82 million in the third quarter compared with a profit of $29 million in the year-ago quarter and a loss of $51 million in the second quarter of 2013. 

The company is actively engaged in improving its cost structure and sustainably increasing revenues through its "Project Carnegie" initiative, which includes measures like shutdown of operations. These efforts are expected to deliver over $75 million in cost improvements annually.

U.S. Steel is experiencing strong demand in the automotive space. In early 2013, the company collaborated with specialty alloy maker Carpenter Technology Corporation (NYSE:CRS-Free Report) to develop lighter high-strength steel for automotive applications. The association will generate growth opportunities in the automotive market.

Further, in May 2013, U.S. Steel and Japan's Kobe Steel commissioned a new continuous annealing line at their joint venture, PRO-TEC Coating Company. The 500,000-ton PRO-TEC continuous annealing line will produce the next generation of Advanced High Strength Steels (AHSS) and Ultra High Strength Steels (UHSS) having the superior strength, flatness and formability which were earlier unavailable at these levels. 

U.S. Steel is also looking for opportunities related to the availability of reasonably priced natural gas as an alternative to coke in the iron reduction process, to improve its cost competitiveness while reducing its dependence on coal and coke in the long term. The company is also expanding its coke-making capabilities. It has taken a number of steps in order to ensure long-term access to high quality coke for its blast furnaces.

Other Stocks to Consider

Other players in the steel industry worth considering are Companhia Siderurgica Nacional (NYSE:SID-Free Report) and ArcelorMittal (NYSE:MT-Free Report). Both carry a Zacks Rank #1 (Strong Buy).

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.

About Zacks

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.

Get the full Report on UPS - FREE

Get the full Report on X - FREE

Get the full Report on CRS - FREE

Get the full Report on SID - FREE

Get the full Report on MT - FREE

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.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]


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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Since we launched LinuxONE we learned a lot from our customers. More than anything what they responded to were some very unique security capabilities that we have," explained Mark Figley, Director of LinuxONE Offerings at IBM, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
I love the beginning of the year. It is always enjoyable to see people's predictions for trends in the coming year. Publications like Fortune, CNN Money, Washington Post and the Atlantic speculate about what gadgets and technologies are going to take off in popularity this year, psychics predict which celebrities will have babies and fall in love, and I start to think about trends like DevOps and where the software delivery industry is headed next.CollabNet, Eric Robertson, predicted.
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...