|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.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
May. 30, 2016 02:00 PM EDT Reads: 3,049
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 30, 2016 01:30 PM EDT Reads: 1,127
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
May. 30, 2016 12:00 PM EDT Reads: 1,490
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
May. 30, 2016 12:00 PM EDT Reads: 4,112
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
May. 30, 2016 12:00 PM EDT Reads: 797
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
May. 30, 2016 11:30 AM EDT Reads: 752
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
May. 30, 2016 11:30 AM EDT Reads: 1,468
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 30, 2016 11:15 AM EDT Reads: 1,342
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
May. 30, 2016 11:00 AM EDT Reads: 2,575
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. 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 ...
May. 30, 2016 10:45 AM EDT Reads: 2,059
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will look at the present state of cloud from the C-level view, and how great companies and rock star executives can use cloud computing to meet their most ambitious and disruptive business ...
May. 30, 2016 10:00 AM EDT Reads: 2,296
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
May. 30, 2016 09:15 AM EDT Reads: 2,826
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
May. 30, 2016 09:15 AM EDT Reads: 2,386
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 30, 2016 09:00 AM EDT Reads: 1,448
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 30, 2016 08:00 AM EDT Reads: 2,393