|By PR Newswire||
|April 1, 2014 09:30 AM EDT||
CHICAGO, April 1, 2014 /PRNewswire/ -- Zacks Equity Research highlights Chemed Corp (NYSE:CHE-Free Report) as the Bull of the Day and Infoblox (NYSE:BLOX-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onOffice Depot, Inc. (NYSE:ODP-Free Report), Staples, Inc. (Nasdaq:SPLS-Free Report) and Amazon.com Inc. (Nasdaq:AMZN-Free Report).
Here is a synopsis of all five stocks:
Chemed Corp (NYSE:CHE-Free Report) isn't a company that gets a lot of press. Today is April Fool's Day, and I wanted to work in a joke here, but I just can't. Chemed is a Zacks Rank #1 (Strong Buy) and is the Bull of the Day.
Down the Drain
I have to admit, when I saw the name Chemed, I thought to myself this must be a specialty chemicals company. Instead, I was fascinated to learn that this is the corporate parent of Roto-Router as well as a hospice company.
The synergies didn't make too much sense to me, but I was too excited to write about Roto-Router to take a pass. Plus, I could always make a pun about something or another. The thing that pushed it over the top for me was that it was based on Ohio, and I am, by birth-rite, a Buckeye.
Chemed Corporation provides hospice and palliative care services in the United States. It operates in two segments, VITAS and Roto-Rooter. The company offers its services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers. It also provides plumbing and drain cleaning services to residential and commercial customers. Chemed Corporation was founded in 1970 and is based in Cincinnati, Ohio.
Infoblox (NYSE:BLOX-Free Report) is a Zacks Rank #5 (Strong Sell) while there 6 other companies that carry higher Zacks Ranks. This is a good reason to take a look at why it is a #5 and the Bear of the Day.
Maybe you have seen some articles about big data and its growing importance to the economy. Seems marketers need all this data to get the best possible ad to you, making the rest of our lives similar to surfing the internet.
The thing that a lot of investors have done is look to the back bone of big data as a spot to invest. While that works in some spots, it doesn't guarantee success.
Infoblox Inc. is in the business of automated network control solutions. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances. The company was founded in 1999 and is headquartered in Santa Clara, California.
BLOX has missed the Zacks Consensus Estimate for 2 straight quarters. As I look back further, I see they have missed three of their last five quarters. There was one mega-miss that came in 100% below the Zacks Consensus Estimate, that will end up skewing the average, but the other two misses were large as well. A miss of 20% and 16% are nothing to shake a stick at.
Office Depot in Downward Spiral?
It seems that Office Depot, Inc. (NYSE:ODP-Free Report) has lost its momentum, as the stock fell nearly 16% ever since the company reported a dismal fourth-quarter 2013 on Feb 25, 2014. Year-to-date, the company has witnessed its market cap erode by 23%.
The slide is a reflection of wary investors as Office Depot continues to disappoint on the earnings front. The company has missed the Zacks Consensus Estimate in the trailing 4 quarters by an average of 122.2%.
In the most recent quarter, earnings fell short of the estimate by 200%. The company posted fourth-quarter 2013 loss of 3 cents per share as against the Zacks Consensus Estimate of earnings of 3 cents. Revenues of $3,486 million also fell short of the Zacks Consensus Estimate.
What is Causing the Dismal Run?
The office supplies industry is currently grappling with secular as well as cyclical headwinds. Improvement in technology has reduced the demand for traditional core office-supply items (paper, toner, ink). Moreover, the decline in business and consumer spending, given the global meltdown and deterioration of credit markets has resulted in sluggish demand for big-ticket items, thereby negatively impacting the top line. The sector's poor run has had a telling effect on the performance of other retailers including Staples, Inc. (Nasdaq:SPLS-Free Report).
Given the uncertainties, analysts' have become less constructive on the stock's future performance. This is evident from the movement witnessed in the Zacks Consensus Estimate that tumbled 56% to 11 cents for 2014 and 42% to 33 cents a share for 2015 in the past 60 days.
To bail itself out, Office Depot merged with Office Max. Management was very upbeat on the merger and raised expectations regarding the synergies during the recent fourth quarter conference call.
Management now expects synergies from the merger to exceed more than $600 million by 2016. This excludes any benefit arising from rationalizing the domestic retail store base. Earlier, cost savings in the upper half of $400 million to $600 million were expected to be generated from the merger synergies (purchasing, cost of good sold, supply chain, advertising, headcount and other general & administrative).
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.
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...
Nov. 27, 2015 02:00 PM EST Reads: 407
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.
Nov. 27, 2015 01:00 PM EST Reads: 165
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.
Nov. 27, 2015 01:00 PM EST Reads: 146
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...
Nov. 27, 2015 12:00 PM EST Reads: 462
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Nov. 27, 2015 12:00 PM EST Reads: 538
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Nov. 27, 2015 11:45 AM EST Reads: 535
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.
Nov. 27, 2015 11:00 AM EST Reads: 309
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...
Nov. 27, 2015 10:45 AM EST Reads: 383
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...
Nov. 27, 2015 10:45 AM EST Reads: 396
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Nov. 27, 2015 10:00 AM EST Reads: 305
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).
Nov. 27, 2015 10:00 AM EST Reads: 490
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...
Nov. 27, 2015 09:45 AM EST Reads: 217
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).
Nov. 27, 2015 09:15 AM EST Reads: 288
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...
Nov. 27, 2015 08:00 AM EST Reads: 376
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Nov. 27, 2015 07:45 AM EST Reads: 422