Click here to close now.




















Welcome!

News Feed Item

Zacks Investment Ideas feature highlights: UBS, Deutsche Telekom and Baidu

CHICAGO, April 7, 2014 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: UBS (NYSE:UBS-Free Report), Deutsche Telekom (OTC:DTEGY-Free Report) and Baidu (NYSE:BIDU-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

3 Stocks to Sell to Pay Taxes

Tax day is right around the corner, and investors that are facing a large tax bill might be thinking about what stocks to hang on to and which ones to sell to pay those taxes.

Not all investors think of this issue the same way, but let's take a look a few stocks that saw substantial gains over the prior 52 weeks that have also had recent negative earnings estimate revisions.

Bank On It

The first stock that could see potential selling pressure is in the financial sector. Those stocks had a good run in 2013 and might now be in the cross hairs of sellers due to recent HFT revelations.

UBS (NYSE:UBS-Free Report) was up about 39% over the last 52 weeks, and recently analysts have been lowering their estimates on the stock.

Right now, the stock is a Zacks Rank #5 (Strong Sell), and has seen consistent decreases earnings estimates. Analysts can move their estimates lower for all sorts of reasons, but the end result is a company with earnings that look to be decreasing. That is the case with UBS.

The 2014 Zacks Consensus Estimate was as high as $1.83 in May of 2013, but that number has fallen throughout all of last year and into 2014. By October, the estimate had slipped to $1.62 and the current forecast is calling for $1.33. That is a decline of more than 27%.

The 2015 Zacks Consensus Estimate is also seeing a decline. The estimate stood at $2.03 in October of last year, but dropped to $1.85 in January and is now at $1.75.

One of the best ways to look at earnings estimates and their impact on stocks is to go to the Zacks site for a graph called the price and consensus graph.

ET Shouldn't Phone Home

When ET wanted to "phone home" telecom stocks were a sure thing. Remember the days of paying for long distance? I sure do, but that isn't the concern of today's generation. They hardly use the phone and much more likely to eat up a texting plan or data consumption.

Deutsche Telekom (OTC:DTEGY-Free Report) saw a significant run up over the last 52 weeks, but again analysts have been lowering estimates. That stock was up 52%, much more than UBS, but it has a better earnings picture.

Only lately have the analysts moved their estimates lower. Throughout almost all of 2013, the Zacks Consensus Estimate held steady at just about $1.00. A few times the number moved a penny one way or the other, but the majority of the year saw estimates looking for $1.00. In March, the consensus slipped to $0.89 and that is where it stands right now.

The 2014 Zacks Consensus Estimate was calling for a little growth from 2014 and was mostly in a range of $1.04 to $1.07. In March, the estimate for 2015 slid to $0.88 and that implies negative year over year earnings growth. That is not what investors want to see.

I should note that T-Mobile, the wireless play for the company, has seen a recent resurgence. I am no telecom analyst, but I can say that the CEO of this company has made a lot of highly visible moves. I happen to be partial to his "crashing" of the AT&T concert at CES, only to be thrown out by security. This guy wasn't just after the press either, he later had the performer play for T-Mobile.

Searching For China

A lot of people have been pointing out stocks from China as being dangerous plays. Some point to frauds and other say the accounting is all wrong. Most people can agree that China wants to slow its roll in terms of economic growth right here, and that may hurt some stocks that rely that growth.

Baidu (NYSE:BIDU-Free Report) had a terrific run up over the last 52 weeks, notching a gain of more than 80%. This stock has not really followed the EPS estimates like most stocks, so this is not the strongest of plays in my thesis. That said, a lot of momentum plays have been getting hammered of late and this stock is down from a recent high of nearly $190.

BIDU is coming off back to back quarterly earnings misses of the Zacks Consensus Estimate. The company reported on 2/26 and beat on the top-line for the tenth straight quarter and investors ended up liking what they heard from the company as shares traded higher by 5% in the session following the announcement.

Estimates didn't fare as well. The 2014 Zacks Consensus Estimate had been moving higher throughout 2013, but abruptly dropped at in February. As early as May of last year, analysts were looking for $6.02 in EPS, and they were as bullish as late as January of this year when they had adjusted estimates to $6.46. The number dropped to $5.66 in February and is now at $5.40.

The 2015 Zacks Consensus Estimate also saw a decrease. The number was $8.88 in January, but it slipped to $8.10. That still implies a very healthy growth rate of 50% for next year, but again, given the current market, this stock could be in the cross hairs of sellers.

Conclusion

The Ides of March was a bad day for Caesar... and that is an understatement. The next Ides is a bad day for tax payers as those of us that booked significant capital gains need to have our payment in to the IRS by April 15. Some investors will be looking to take some gains and sell stocks to pay that tax bill. Knowing where estimates are going is a good way to pick which stock you plan on selling out of your portfolio to pay that tax bill.

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! Click here for your free subscription to Profit from the Pros.

Get the full Report on UBS – FREE
Get the full Report on DTEGY – FREE
Get the full Report on BIDU – FREE

Follow us on Twitter:  http://twitter.com/ZacksResearch

Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch

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

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
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
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.
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, 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. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...