|By PR Newswire||
|April 3, 2014 09:30 AM EDT||
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).
Here is a synopsis of all five stocks:
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."
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.
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.
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 (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.
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.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.
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
Mar. 22, 2017 05:45 PM EDT Reads: 1,681
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 22, 2017 04:30 PM EDT Reads: 636
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 22, 2017 03:45 PM EDT Reads: 1,011
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 22, 2017 03:30 PM EDT Reads: 629
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Mar. 22, 2017 03:15 PM EDT Reads: 392
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 22, 2017 02:45 PM EDT Reads: 2,129
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Mar. 22, 2017 02:15 PM EDT Reads: 2,076
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Mar. 22, 2017 02:00 PM EDT Reads: 1,275
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Mar. 22, 2017 02:00 PM EDT Reads: 683
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Mar. 22, 2017 01:30 PM EDT Reads: 8,033
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
Mar. 22, 2017 01:15 PM EDT Reads: 1,775
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Mar. 22, 2017 01:15 PM EDT Reads: 976
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 22, 2017 12:45 PM EDT Reads: 7,641
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 22, 2017 12:00 PM EDT Reads: 1,309
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo 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 to wait for long developm...
Mar. 22, 2017 12:00 PM EDT Reads: 2,584