Welcome!

News Feed Item

Sprouts Farmers Market, Jabil Circuit, Mondelez International, Kraft FoodsGroup and Starbucks highlighted as Zacks Bull and Bear of the Day

CHICAGO, Feb. 11, 2014 /PRNewswire/ -- Zacks Equity Research highlights Sprouts Farmers Market (Nasdaq:SFM-Free Report) as the Bull of the Day and Jabil Circuit (NYSE:JBL-Free Report)  as the Bear of the Day. In addition, Zacks Equity Research provides analysis onMondelez International, Inc. (Nasdaq:MDLZ-Free Report), Kraft Foods Group, Inc. (Nasdaq:KRFT-Free Report) and Starbucks (Nasdaq:SBUX-Free Report).

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

Here is a synopsis of all five stocks:

Bull of the Day:

Sprouts Farmers Market (Nasdaq:SFM-Free Report) is a grocer that is looking to eat the lunch of an industry that seems to be on a race to the bottom. With Target and Walmart getting into the space, SFM is looking to a store layout that best suits the needs of its shoppers and leverages the local supply chain as well. It is a Zacks Rank #2 (Buy) and it is the Bull of the Day.

Your Best Grocery Option?

One of the reasons this stock caught my eye was the options action. I even went ahead and did a screen shot of the action to help everyone understand what I saw. The March 35 calls were seeing a huge amount of contracts coming in when there was basically no or tremendously light open interest. This means the buyer is paying nearly $3 for the $35 call and they expect the stock to be $38 in mid-March. That is a good sized move from right here, so following this big fish isn't that bad of an idea.

SFM is a grocer just like Whole Foods - but I like this idea better as they are not about the mega box stores. They are located primarily in the Southwest.

Bear of the Day:

Jabil Circuit (NYSE:JBL-Free Report) has had a good recent history as far as earnings report go, but analysts have slashed estimates. That has impacted it Zacks Rank and to as a Zacks Rank #5 (Strong Sell) it is the Bear of the Day.

One of the reasons I don't like chip stocks is the analysts in that space have all sorts of ways to get information from suppliers that is not readily available in other industries. That nearly insider info becomes a crutch for the analysts who rely on it yet the industry is constantly evolving.

Then there is the idea of obsolescence and how quickly chips go from the factory floor / or the fab center to the trash heap. Of course they try their best to sell them first at greatly reduced prices and then factor those sales in at 100% gross margin, as they were going to be written off anyway.

Jabil Circuit makes electronic manufacturing services and solutions worldwide. The company offers electronics design, production, and product management services. The company's services include integrated design and engineering. Jabil Circuit, Inc. was founded in 1966 and is headquartered in St. Petersburg, Florida.

The last few reports for the company tell the tale of why investors need to be cautious with this stock. The company has beaten the estimate in each of the last two quarters, but the stock has traded off after each. The November 2013 earnings release on December 17 of that year was a beat of $0.16 or 34% ahead of expectations. One might think that would be good for the stock, but it ended up falling 20% in the session following the release.

Additional content:

Is Mondelez (MDLZ) Poised to Beat Earnings?

We expect food company, Mondelez International, Inc. (Nasdaq:MDLZ-Free Report), to beat expectations when it reports fourth-quarter and full-year 2013 results on Feb 12. Last quarter, it posted in-line results. Let's see how things are shaping up for this announcement.

Why a Likely Positive Surprise?

Our proven model shows that Mondelez is likely to beat earnings because it has the right combination of the two key ingredients.

Positive Zacks ESP: Expected Surprise Prediction or Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +2.27%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks Rank: Mondelez carries a Zacks Rank #3 (Hold) which, when combined with +2.27% ESP, makes us confident about a positive earnings beat.

Note that stocks with Zacks Ranks #1, 2 or 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.

What is Driving the Better-Than-Expected Earnings?

Mondelez has reported disappointing top-line results since its split from Kraft Foods Group, Inc. (Nasdaq:KRFT-Free Report) in Oct 2012. In the third quarter of 2013, slower global category growth, lower coffee pricing and weak China sales hurt the top line. These headwinds are expected to persist in the fourth quarter as well, thus putting pressure on the top line. Accordingly, net revenue for the fourth quarter is expected to decline in low single-digits while organic revenue is expected to increase about 3%.

However, Mondelez has tremendous margin expansion potential. In the fourth quarter, operating margins are expected to be above 13%, better than the third quarter and the full-year expectations. The top-line headwinds are expected to be partially offset by high cost savings and improved productivity.

Also, in Dec 2013, the company announced a massive $1.7 billion share buyback plan which will be funded by the net proceeds of the arbitration award that Starbucks (Nasdaq:SBUX-Free Report) will pay under a dispute settlement announced in November. The share buybacks should also boost earnings.

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

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 analyst 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. Click here to 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 SFM - FREE

Get the full Report on JBL - FREE

Get the full Report on MDLZ - FREE

Get the full Report on KRFT - FREE

Get the full Report on SBUX - 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]

http://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
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...
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...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...