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
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. 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] Miami Blockchain Event by FinTechEXPOalso offers sp...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve fu...
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
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.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
CloudEXPO New York 2018, colocated with DXWorldEXPO 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.
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.
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.