Click here to close now.


News Feed Item

The Zacks Analyst Blog Highlights: Cisco Systems, Whole Foods Market, Gentex, Oshkosh and Magna

CHICAGO, Feb. 13, 2014 /PRNewswire/ -- 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 Cisco Systems (Nasdaq:CSCO-Free Report), Whole Foods Market (Nasdaq:WFM-Free Report), Gentex Corp (Nasdaq:GNTX-Free Report), Oshkosh Corp (NYSE:OSK-Free Report) and Magna (NYSE:MGA-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:

Cisco Beats Earnings, but Some Comps Down

Tech bellwether and network solutions leader Cisco Systems (Nasdaq:CSCO-Free Report) reported fiscal 2nd quarter earnings after the bell Wednesday. Revenues of $11.16 billion in topped the Zacks Consensus Estimate of $11049 million, while earnings per share (after stock-based compensation and before non-recurring items) was 42 cents per share, beating the Zacks estimate by a penny.

Cash flow form operations grew frown $2.6 billion in the company's fiscal Q1 (ended October 2013) to $2.9 billion, which is good, but year over year GAAP revenue was down close to 8% while Net Income was down 54%. Cisco had made many large acquisitions to help forge new growth in the future over the past year, but it looks like investors will have to wait a bit to see the monetization of new businesses WhipTail Technologies, and Insieme Networks.

Cisco managed to bump up its quarterly dividend yield from 17 cents to 19 cents per share, and also bought back $4 billion worth of stock for a total return to shareholders of $4.9 billion. Just the company's way of saying "thank you for your patience," I suppose.

No analysts had made any upward or downward estimate revisions to Cisco estimates in the last two months, for either the quarter just reported, the current Q3, fiscal 2014 or fiscal 2015. Apparently everyone is in "wait and see" mode when it comes to Cisco's "Next Generation of IT." At least the game-plan is in place, however; acquisitions this massive usually take time to turn into big growth.

Whole Foods Cuts Prices, Earnings & Revenues Slump

Whole Foods Market (Nasdaq:WFM-Free Report) reported earnings after the bell today, posting an EPS of $0.42 missing the Zacks Consensus Estimate of $0.44.  On the Revenue front, Whole Foods also missed the Zacks Consensus Revenue Estimate of $4.3 billion, by posting revenues of $4.24 billion.  

There was not much excitement going into the earnings announcement because of the recent decrease of guidance with their Same Store Sales (SSS), and total sales growth for 2014.  SSS was revised from 6.5%-8% for 2014 to 5.5%-6.5%, while sales growth was reduced from 12%-14% for 2014 to 11%-12%.  These revisions caused the street to lower expectations for both 2014 and 2015 (before this earnings announcement).

Unfortunately for Whole Foods, analysts were intensely looking at SSS, which came in below the expected 5.5% growth by posting 5.4% growth, extending the continued deteriorating SSS comps another quarter. Moreover, sales growth year over year only grew 9.96%, while the street was expecting 11% growth.  The misses on both major benchmarks will negatively impact the stock price.  

Over the past quarter Whole Foods was cutting prices due to increased competition by companies entering the Organic & Natural food business.

Dumps Like a Truck... Earnings Like WHAT?!

Early February in Chicago is about two things for me; Cold weather and the Auto Show. I remember going as a kid and coming back with a sweet Lamborghini Diablo poster I stuck up on my wall and dreamed about. Just like the one Leo crawled into in "Wolf of Wall Street."  The showstopper for me was BMWs i8 electric supercar beast. It's like looking into the future, but wait, the future is here in July? All the glitz, glamour, and Carnauba wax got me thinking. Automakers have made strides toward energy efficiency over the last several years, what's going on with the trucking business? Are these efficient motor designs making their way over the commercial end?

Maybe it is actually the other way around. Maybe the trucking industry made changes years ago and the consumer segment is just catching on. Honestly, I didn't have a great understanding of the trucking biz so I dug in a little bit. Little did I know I would find some of the most exciting earnings stories I've heard in a long time. Couple that with the best price and consensus chart I have ever seen and you've got one heck of story.

An interesting feature in new high-end import cars is the "Night vision" option. Think infrared googles only the image appears on your in-dash screen. This can help drivers avoid hitting that deer around the corner in the dark or avoid the nasty pothole on Ashland Ave (Good luck!). Turns out that trucks have had these kinds of systems for years. Gentex Corp (Nasdaq:GNTX-Free Report) develops and markets electro-optic products, Night Vision Safety automatic dimming mirrors, and a whole line of products that help keep the roads safer at night. The earnings story is great with recent upside revisions and next year growth numbers through the roof. This Zacks Rank #1 (Strong Buy) stock looks good fundamentally. The price and consensus chart gives me a warm fuzzy feeling about this company and certainly puts it on my radar.

I didn't miss the boat and I'll get another shot at it. Right now we are trading below the 25x5 which means I can wait. Also, I have an obvious price level to enter at right around $30. Classic example of a breakout that comes back down to retest. See that wick that came down to touch $30 at the end of January? That tells me $30 is right around the corner again, just be patient. Aside from that, the stochastic buy was right on but I'm not looking for a move from $30.50 to topside resistance at the 25x5 just two bucks away. I'm a momentum wave rider and the surf is not up right now.

At the Jeep display, a professional driver took willing participants up a grade that looked over 45 degrees steep. Jeep does a great job of promoting how rugged and reliable their trucks are. The commercial equivalent of this is Oshkosh Corp (NYSE:OSK-Free Report). I thought they made kids overalls, but apparently that's a different company. OSK manufactures specialty access equipment, fire, emergency and military vehicles and vehicle bodies.  Earnings have been looking up for this company as well, although not as high as the Jeep headlights I saw. OSK is a Zacks Rank #2 (Buy) with solid fundamentals and a great name in the commercial vehicle market.

The chart is setting up nicely. A big spike in late January has already cleared the way above $58. We have the stochastics oversold and crossing bullish as the stock finds support at the 25x5. I wouldn't call it textbook perfection, but we are getting there. A keen eye could put a stop in on the south side of $50 and have a nice risk/reward situation.

I know what you're all thinking by now. Where's this "best price and consensus chart I have ever seen?" That belongs to Magna (NYSE:MGA-Free Report). Unfortunately I don't have a fun anecdote from my night at the show to give as an intro on this one. Magna is an independent supplier of OE components, assemblies, modules and systems for cars and light trucks. It's in the same industry that is in the Top 26% of the Zacks Industry Rank as the other two stocks mentioned. The fundamental rank for us here is a Zacks Rank #2 (Buy).

Now totally eliminate the P&C from your head. This stock could break out tomorrow. Above the 25x5, got a stochastic buy from oversold three days ago at $83, and we are approaching a double top with support beneath us at $84-$85. If it takes out the previous high and sees $90 then the stock goes to $100. The pullback we had the beginning of February helped to establish a new bullish support trend line down through the December lows and upwards to the heavens. Earnings are slated for March 3rd and could be the catalyst to push this to the triple digits.

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 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 CSCO - FREE

Get the full Report on WFM - FREE

Get the full Report on GNTX - FREE

Get the full Report on OSK - FREE

Get the full Report on MGA - FREE

Follow us on Twitter:

Join us on Facebook:

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 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
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.