|By PR Newswire||
|March 17, 2014 09:30 AM EDT||
CHICAGO, March 17, 2014 /PRNewswire/ -- Zacks Equity Research highlights Spartan Stores (Nasdaq:SPTN-Free Report) as the Bull of the Day and GlaxoSmithKline (NYSE:GSK-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onBarclays PLC (NYSE:BCS-Free Report), JPMorgan Chase & Co. (NYSE:JPM-Free Report) and Deutsche Bank AG (NYSE:DB-Free Report).
Here is a synopsis of all five stocks:
Spartan Stores (Nasdaq:SPTN-Free Report) is the Bull of the Day on St. Patrick's Day, 2014. I selected SPTN not only because of its Zacks Rank #1 (Strong Buy) but also because I can work in plenty of "green" puns and musical references. This is, after all, the day for the Irish they are identified with the color green and plenty of music!
Johnny Cash had a wonderful hit back in the 60's with Forty Shades of Green ... not at all to be confused with the tawdry "50 Shades of Grey", or for that matter the few shades of green that Spartan Stores uses.
Spartan Stores, Inc. operates as a grocery distributor and retailer principally in Michigan and Indiana. The operate 375 independent grocery stores and 97 corporate-owned stores, as well as offering approximately 3,900 private brand grocery and general merchandise items.
The Retail segment operates 97 retail supermarkets in Michigan under the Glen's Markets, Family Fare Supermarkets, D&W Fresh Markets, VG's Food and Pharmacy, and Valu Land names - and I have a personal favorite Glen's that is located in Charlevoix MI. The company was founded in 1917 and is headquartered in Grand Rapids, Michigan.
Over the last year, SPTN has delivered four straight beats. In surpassing the Zacks Consensus Estimate in each quarter, the market has no done the stock any favors. "You'd think she was queen of the land" with those beats that average a positive earnings surprise of 20%. But the market barely moved the stock, and in fact sent it lower two times in the sessions immediately following earnings report.
GlaxoSmithKline (NYSE:GSK-Free Report) is the Bear of the Day on St. Patrick's Day, 2014. I selected GSK not only because of its Zacks Rank #4 (Sell) but also because it is based in England, the long standing thorn in the side of the Irish.
Normally the Bear of the Day is a Zacks Rank #5 (Strong Sell) stock. I took a little liberty today on GSK as it is only a #4, but seeing as its St. Patrick's Day, I will also make sure that I easy on the maker of Valtrex.
GlaxoSmithKline makes drugs and health care products. GlaxoSmithKline plc was founded in 1935 and is headquartered in Brentford, the United Kingdom.
Over the last three quarter, GSK has seen two misses of the Zacks Consensus Estimate and one beat. The issue is really more about how the misses are both 5% or more negative earnings surprises. The beat, was only 2.2%.
Over the last year or so the Zacks Consensus Estimate for GSK has been moving lower. Starting in April of last year, the 2014 Zacks Consensus Estimate moved from $4.03 to $3.87 four months later. By the start of the new year, the estimate had dipped to $3.76 and is now $3.68.
The 2015 Estimate has also slid from $4.38 in April to the present level of $3.99.
The maker of Paxil might want to supply it to shareholders who are seeing this disturbing trend.
Barclays to Overhaul Investment Banking Arm
Facing the ire of investors for increasing its 2013 bonus pool after reporting lower profits, Barclays PLC (NYSE:BCS-Free Report) is planning to streamline its Investment Banking segment to improve profitability. This was first reported by The Financial Times on Thursday.
Barclays has already started the review of its Investment Banking division, which is expected to be completed in the next few months. This is likely to lead to more job cuts as well as departure of the unit's co-heads – Tom King and Eric Bommensath. However, Barclays denied any changes at the executive level in its Investment Banking unit.
Last month, during the earnings conference call, Antony Jenkins, Barclays ' CEO announced the reduction of nearly 12,000 jobs, out of which 400 were in the Investment Banking segment. The cuts were announced to mitigate the company's lower profits amid tougher regulations and sluggish economic recovery.
However, Barclays increased the overall bonus pool by 10% to £2.4 billion in 2013. Further, bonus pool for the Investment Banking division rose 13% to £1.6 billion, despite the segment reporting a 37% year-over-year fall in profit before tax.
The rise in bonus pool in spite of decreased profits angered investors, who questioned the feasibility of such a move. Notably, the CEO tried to justify the rise by stating that the decision was taken to stop attrition among investment managers.
Further, Barclays' share price has declined nearly 9.8% since the earnings release on Feb 12. Additionally, the Zacks Consensus Estimate for 2014 fell 3% to $1.95 over the last 30 days.
We believe that stringent regulations and weak trading in fixed income have led to increased pressure on returns from Investment Banking segment. Additionally, in 2013, fixed income commodity currency (FICC) income fell 17% to £5.5 billion.
Further, major global banks like JPMorgan Chase & Co. (NYSE:JPM-Free Report) and Deutsche Bank AG (NYSE:DB-Free Report) anticipate the slump in fixed income to continue into this year. Given this scenario, Barclays' plan to review and streamline its Investment Banking segment will likely boost profits going forward.
Currently, Barclays carries a Zacks Rank #3 (Hold).
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.
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
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.
Dec. 8, 2016 06:30 AM EST Reads: 1,113
Dec. 8, 2016 06:15 AM EST Reads: 5,909
Dec. 8, 2016 05:00 AM EST Reads: 2,159
Dec. 8, 2016 04:30 AM EST Reads: 731
Dec. 8, 2016 04:15 AM EST Reads: 946
Dec. 8, 2016 04:00 AM EST Reads: 3,797
Dec. 8, 2016 04:00 AM EST Reads: 4,815
Dec. 8, 2016 04:00 AM EST Reads: 1,045
Dec. 8, 2016 02:45 AM EST Reads: 1,299
Dec. 8, 2016 02:30 AM EST Reads: 1,120
Dec. 8, 2016 01:45 AM EST Reads: 1,410
Dec. 8, 2016 01:30 AM EST Reads: 1,925
Dec. 8, 2016 01:00 AM EST Reads: 3,957
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dec. 8, 2016 12:30 AM EST Reads: 1,136
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 8, 2016 12:15 AM EST Reads: 1,363