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
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Enterprises are universally struggling to understand where the new tools and methodologies of DevOps fit into their organizations, and are universally making the same mistakes. These mistakes are not unavoidable, and in fact, avoiding them gifts an organization with sustained competitive advantage, just like it did for Japanese Manufacturing Post WWII.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
"Calligo is a cloud service provider with data privacy at the heart of what we do. We are a typical Infrastructure as a Service cloud provider but it's been designed around data privacy," explained Julian Box, CEO and co-founder of Calligo, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.