Click here to close now.

Welcome!

News Feed Item

Vipshop Holdings,Genomic Health,Toyota, Honda and Kyocera highlighted as Zacks Bull and Bear of the Day

CHICAGO, April 3, 2014 /PRNewswire/ -- Zacks Equity Research highlights Vipshop Holdings Ltd. (NYSE:VIPS-Free Report)as the Bull of the Day and Genomic Health (Nasdaq:GHDX-Free Report)  as the Bear of the Day. In addition, Zacks Equity Research provides analysis onToyota (NYSE:TM-Free Report), Honda (NYSE:HMC-Free Report) and Kyocera (NYSE:KYO-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Here is a synopsis of all five stocks:

Bull of the Day:

Vipshop Holdings Ltd. (NYSE:VIPS-Free Report) is a leading online discount retailer for high-quality brand name products in China, utilizing the online "flash sales" method where special pricing may only be available for a few days.

Offering a wide selection of various famous branded discount products including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products through its website, the $9 billion company describes its unique approach thus...

"As compared to conventional on-line marketplaces or large-scale multi-category online retailers, Vipshop has successfully created and proven there is a third e-commerce model that can provide tremendous scale and profitability. By providing special offers and deep discounts on branded products, the Company has pioneered the online discount retail model in China and become the expert and leader trusted by our customers and brand partners alike."

Bear of the Day:

I often like to re-visit previous Bear of the Day stocks after a few months if they are still Zacks #5 Rank Strong Sells, or have fallen back to that distasteful status. I first wrote about Genomic Health (Nasdaq:GHDX-Free Report) in early October when the stock was around $30 and since then it has spent most of its time as a #4 Sell or a #5.

Needless to say, the stock hasn't done much in the past six months, hitting new 52-week lows in February below $26.

Genomic Health is a life sciences company focused on the development and commercialization of genomic-based clinical diagnostic tests for cancer that allow physicians and patients to make individualized treatment decisions. It was started in 2000 by CEO Randy Scott, who was then at Incyte Genomics.

Additional content:

Will Abenomics Survive? 3 Prudent Choices

Japan has increased its consumption tax from 5% to 8% starting this month, the first such increase in 17 years. This is the latest and, as many believe, the most radical of Japanese Prime Minister Shinzo Abe's economic decisions since he assumed office in 2012. Collectively known as Abenomics, Abe's economic policies have thus far reinvigorated Japan's flagging economy.

Need for a Consumption Tax Hike

A series of tax increases has been outlined by a legislation passed in August 2012. The first of these has already come into effect, raising the consumption tax from 5% to 8% starting this month. The second increase, slated for October 2015, will increase the rate to 10%.

The current increase is a move targeting at meeting rising social security costs for the country's aging population. Japan has a massive amount of public debt, amounting to 240% of its GDP. The increase aims to raise tax revenues by ¥4.5 trillion ($43.6 billion) in the current fiscal year. This is almost 1% of the nation's GDP.

Impact on Consumption

Several analysts are of the view that the increase will impact consumer spending negatively. This is borne out by increased buying behavior witnessed last month, an attempt to stock up before the tax comes into effect.

Japan has faced years of deflation and this has made consumers unwilling to increase spending. In fact, one of Abenomics' key targets is to increase consumer spending in an effort to energize the economy and consequently increase inflation.

According to a Bank of Japan survey, inflation has now increased. However, it is expected to remain below the targeted 2%, given the rise in consumption tax.

Growth and Government Intervention

The legislation related to consumption tax increases also states that the government aims to achieve nominal growth of 3% and real growth of 2%. Already there is speculation that the next tax increase may not take place if the hike's effect is too detrimental.

Several economists are of the view that the country's economy may suffer a contraction due to the tax increase. However, they also believe that this will result in a slowdown at worst -- not a recession -- and growth will be on course soon.

Wage Increases

The Japanese Prime Minister has been making efforts for a long time to bring about an increase in wages. Salaries increased for the first time in nearly two years this January.

According to the Ministry of Labor, base pay -- excluding bonuses and overtime -- increased by 0.1% for part-timers compared to a year ago. This is primarily a result of a shrinking labor market, which in turn is an outcome of Japan's aging population. It is only a matter of time before the labor market for full-time workers also tightens. This will support the current increase in inflation and keep the economy on track.

Below we present three Japanese stocks which possess the potential to grow appreciably, each of which also has a good Zacks Rank.

Toyota Motor Corporation

Toyota (NYSE:TM-Free Report) has three business divisions: automobiles, finance and another segment focusing on housing, information and communications. In the first nine months of fiscal 2014, operating net cash flow improved to ¥2,727 billion ($27.3 billion) from ¥1,746.2 billion ($21.6 billion) recorded in the year-ago period.

The company's operating income is expected to rise 81.7% year over year to ¥2,400 billion ($24 billion) in fiscal 2014.

Toyota holds a Zacks Rank #2 (Buy) and has expected earnings growth of 62.70%. The forward price-to-earnings ratios (P/E) for the current financial year (F1) is 9.44.

Honda Motor Co., Ltd.

Another automobile major,Honda (NYSE:HMC-Free Report), is our second choice. Honda's has various business divisions dealing with motorcycles, automobiles, financial services and power products. For fiscal 2014, Honda has projected revenues to increase 22.5% to ¥12.1 trillion ($121 billion).

Operating income is expected to surge 43.2% to ¥780 billion ($7.8 billion) and net income is anticipated to jump 58% to ¥580 billion ($5.8 billion) or ¥321.81 ($3.22) per share.

Currently the company holds a Zacks Rank #2 (Buy) and has expected earnings growth of 51.20%. It has a P/E (F1) of 10.77.

Kyocera Corp.

Kyocera (NYSE:KYO-Free Report) primarily caters to the information and communications market. The company manufactures, sells and distributes industrial components, and telecommunications and information equipment worldwide. Kyocera has expanded its business by effectively developing and applying its ceramics technologies. The company's materials, components and finished products are used in virtually all fields of industry

Apart from a Zacks Rank #2 (Buy), Kyocera has expected earnings growth of 20.00%. It has a P/E (F1) of 19.59.

Prime Minister Abe's latest move, aimed at curing the public debt situation is being viewed as one which could damage the rosy growth situation. However, it is a necessary measure, given the delicate nature of the fiscal situation. Given the recent strength of Japan's economy, it is unlikely to have a lasting impact. This is why these three stocks would be prudent choices for your portfolio.

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 VIPS - FREE
Get the full Report on GHDX - FREE
Get the full Report on TM - FREE
Get the full Report on HMC - FREE
Get the full Report on KYO - 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.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

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
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
"AgilData is the next generation of dbShards. It just adds a whole bunch more functionality to improve the developer experience," noted Dan Lynn, CEO of AgilData, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
In the midst of the widespread popularity and adoption of cloud computing, it seems like everything is being offered “as a Service” these days: Infrastructure? Check. Platform? You bet. Software? Absolutely. Toaster? It’s only a matter of time. With service providers positioning vastly differing offerings under a generic “cloud” umbrella, it’s all too easy to get confused about what’s actually being offered. In his session at 16th Cloud Expo, Kevin Hazard, Director of Digital Content for SoftL...
"A lot of the enterprises that have been using our systems for many years are reaching out to the cloud - the public cloud, the private cloud and hybrid," stated Reuven Harrison, CTO and Co-Founder of Tufin, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...