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]

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
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Today every business relies on software to drive the innovation necessary for a competitive edge in the Application Economy. This is why collaboration between development and operations, or DevOps, has become IT’s number one priority. Whether you are in Dev or Ops, understanding how to implement a DevOps strategy can deliver faster development cycles, improved software quality, reduced deployment times and overall better experiences for your customers.
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...