|By PR Newswire||
|April 7, 2014 09:30 AM EDT||
CHICAGO, April 7, 2014 /PRNewswire/ -- Zacks Equity Research highlights Alaska Air Group (NYSE:ALK-Free Report) as the Bull of the Day and ArcelorMittal (NYSE:MT-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onVisa Inc. (NYSE:V-Free Report), MasterCard Inc. (NYSE:MA-Free Report) and Global Payments Inc (NYSE:GPN-Free Report).
Here is a synopsis of all five stocks:
The airline sector was looking pretty strong thanks to more fuel efficient planes, lower competition, and higher demand for air travel. However, many were worried that the recent batch of bad weather would ground this rally and send airline stocks lower.
This really hasn't been the case though, as many airline stocks have powered through the bad weather and easily beaten out the S&P 500 in the year-to-date time frame. In fact, several companies have put up gains in excess of 20% to kick-off 2014, shaking off the overall market's turbulence effortlessly.
One company sticks out in this continued airline stock rally though, as it has outgained many of its competitors in the time period, while it is generally overlooked as well. This stock, Alaska Air Group (NYSE:ALK-Free Report), has also avoided much of the bad weather thanks to its West Coast focus, and it could actually still be a great pick for investors in the near term.
Alaska Air Group, as you might guess from the name, has a big operation in Alaska, including a hub in Anchorage. The company also has heavy exposure in the Washington/Oregon area as well though, as the firm has hubs in Seattle (where it is actually headquartered) and Portland too.
ALK is also rapidly expanding to other markets as the airline is adding more than a dozen city pairs by the end of the summer. This looks to continue the solid momentum for the company which just reported March traffic figures that represented a 4% increase over last year's numbers, along with a record 88.1% of flights arriving on-time for Alaska Airlines' mainline division.
Even with news of a mini stimulus from China, events haven't been shaping up nicely for the steel industry. Demand for steel from key developed markets in North America and Europe haven't picked back up leading to a glut in production.
And since many steel companies have huge fixed costs, this continued slump in demand has hit the industry pretty hard. Some have looked to make back some profits on volume, but heavy competition has kept a lid on prices, leading to the current rough patch for the industry.
While a number of firms have been impacted by these trends a good barometer of the overall space is ArcelorMittal (NYSE:MT-Free Report) the world's largest steel producer when looking at sales. MT is actually up significantly over the past 52 weeks, but its record in 2014 has been quite poor as it is down about 6% in the year-to-date time frame as concerns have begun to build again over the industry.
MT is based in Luxembourg but it has a global reach, selling steel in more than 150 countries around the world. The firm is broken down into six divisions-- Flat Carbon Americas; Flat Carbon Europe; Long Carbon Americas and Europe; AACIS; Distribution Solutions; and Mining—with a broad focus on producing a variety of finished and semi-finished steel products for customers.
The company, while holding up in the past 52 weeks, still hasn't recovered from the 2008 collapse, as shares are well below the peak set during the beginning of that year. The firm has also been posting horrendous numbers on the earnings front as well, suggesting that it is still working through some turbulence as it attempts to get back to profitability.
Russia Effect: Visa, Mastercard at Stake?
The U.S. sanctions on Russia led to the suspension of purchase payment services by Visa Inc. (NYSE:V-Free Report) and MasterCard Inc. (NYSE:MA-Free Report) in some of the approved banks in that country. While the suspension has been withdrawn, Russia has decided to have its own domestic payment system within six months to become more self-dependent in the future.
The Sanctions & Payment Suspension
Some Russian investors were sanctioned by the U.S. including co-owners of SMP Bank, Boris Rotenberg and Putin's elder brother Arkady Rotenburg over the Crimean issue. Following these sanctions, Visa and MasterCard had terminated the service of credit card purchasing payment for some of the authorized banks in Russia, including Bank Rossiya and SMP Bank. Yuri Kovalchuk, the largest stake holder of Bank Rossiya, also had his name in the list of sanctions.
As a result, clients of these banks faced troubles. However, the cash withdrawal service was not included within the suspensions.
How Russia is Getting Ready?
For a long time, the Russian government had been discussing about introducing an electronic payment card for their citizens to carry on government related transactions like payment of tax, pension, etc. Reportedly, apart from these services, the government now wants to include private purchase payment in this particular card.
How Tough Is the Competition?
Both Visa and MasterCard are the dominating force in the global payment services arena. Visa provides its payment services in more than 200 countries. Almost flawless Internet security service has made Visa a popular choice among consumers, merchants and large number of organizations.
MasterCard has upgraded itself from time to time in order to improve its electronic and Internet secured payment services. This has helped it to acquire a notable portion of global card market.
Recently, both the payment service companies have collaborated to form a new cross-industry group that would emphasize on the EMV chip technology adoption in the U.S. and concentrate on tokenization, point-to-point encryption and other online and mobile channel security-related requirements. This would further enhance their security services.
Is the Backup Plan That Strong?
First of all, Russian citizens traveling outside will face trouble to access the payment system in foreign lands without Visa and MasterCard. It is also a fact that Russians are not active credit card users. As reported by Euromonitor International, in the country which has a population of 143 million, only 30 million credit cards are being circulated. Comparatively, circulation of 192 million debit cards in Russia shows that they prefer debit cards.
Now, these two American card giants hold the lion's share of plastic card market in Russia. So it seems difficult for Russia's planned domestic payment service to compete against these card giants.
The Impact on Visa and MasterCard
Even if Russia succeeds with its plan and curbs the market share of these bellwethers in the country, they should easily offset the loss with the increasing global demand for their plastic cards.
Earnings Prospects of Visa and MasterCard
Although both Visa and MasterCard hold Zacks Rank #3 (Hold) at this moment, they have strong growth estimates. The current year earnings growth estimates for Visa and MasterCard stand at 18.6% and 19.8%, respectively, compared with the expected industry growth rate of 13.7%. Moreover, the long-term growth rates are expected to be 17.2% and 17.7% for Visa and MasterCard, respectively, compared with the expected industry growth rate of 15.4%.
Stock That Warrant a Look
It deals with the electronics transaction services for banks, consumers and other financial institutions, among others. It operates in two sections: North America Merchant Services and International Merchant Services
Currently, Global Payments holds a Zacks Rank #2 (Buy). It has a current year growth estimate of 12.20% compared to industry growth estimate of 13.7%. It also has a strong long-term growth estimate of 11.2%. The company has current year earnings estimate of $4.09.
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.
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Jul. 29, 2015 02:30 PM EDT Reads: 279
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Jul. 29, 2015 02:30 PM EDT
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Jul. 29, 2015 02:17 PM EDT
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...
Jul. 29, 2015 02:00 PM EDT Reads: 1,162
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 02:00 PM EDT Reads: 329
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Jul. 29, 2015 01:45 PM EDT Reads: 415
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
Jul. 29, 2015 01:00 PM EDT Reads: 1,944
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
Jul. 29, 2015 01:00 PM EDT Reads: 1,054
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 12:00 PM EDT Reads: 325
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Jul. 29, 2015 11:00 AM EDT Reads: 257
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
Jul. 29, 2015 11:00 AM EDT Reads: 355
"ProfitBricks was founded in 2010 and we are the painless cloud - and we are also the Infrastructure as a Service 2.0 company," noted Achim Weiss, Chief Executive Officer and Co-Founder of ProfitBricks, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 10:15 AM EDT Reads: 1,104
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Jul. 29, 2015 09:00 AM EDT
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Jul. 29, 2015 07:30 AM EDT Reads: 273
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Jul. 29, 2015 07:00 AM EDT Reads: 178