|By PR Newswire||
|April 17, 2014 09:30 AM EDT||
CHICAGO, April 17, 2014 /PRNewswire/ -- Zacks Equity Research highlights Rambus (Nasdaq:RMBS-Free Report) as the Bull of the Day and American Capital (Nasdaq:ACAS-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onPublic Service Enterprise Group Inc. (NYSE:PEG-Free Report), DTE Energy Company (NYSE:DTE-Free Report) and Edison International (NYSE:EIX-Free Report).
Here is a synopsis of all five stocks:
"There's no mentum like momentum." I know mentum isn't a word but you catch my drift. When a stock is consistently hitting new high after new high there is nothing like it. The market forces of accumulation continually push a stock to levels it hasn't seen before and shareholders are handsomely rewarded. Now find a stock that has positive momentum and a compelling earnings story during a tumultuous stock market and you have today's Bull of the Day.
Rambus (Nasdaq:RMBS-Free Report) is a semiconductor company that has been around for a while but has fallen off most people's radars. RMBS was a darling back in the days of the dot com bubble, trading as high as $135 before the bubble burst. Recently is has wallowed in the single digits until the tide turned in 2013. The semiconductor company is best known for making royalties from DRAM licensing. Good news for RMBS is the potential for new royalty streams from Qualcomm and Mediatek could range from $50 to $95 million per year. This would definitely be a big shot in the arm down the road.
Rambus is a Zacks Rank #1(Strong Buy) and owes that rating to its recent earnings surprises. Over the last four quarters RMBS has beat by an average of 14 per share each time. Last quarter was the most dramatic with RMBS earning 12 cents versus the consensus estimate for a 1 cent loss. The next earnings report is just around the corner, slated for April 21st. Recently, earnings estimates have been revised to the upside for the current year and next year. Current year consensus moved from a 5 cent loss to a 20 cent gain over the last 90 days. Current quarter estimates call for a 1 cent profit per share.
Let's find Zacks Rank #5 (Strong Sell) stocks with recent earnings disappointments, negative earnings revisions, and have underperformed the market. But I want to leave in stocks near their 52 week highs because maybe we are finding out something before the rest of the market is paying attention. I ran this screen today and came up with today's Bear of the Day.
American Capital (Nasdaq:ACAS-Free Report) Zacks Rank #5 (Strong Buy) in a specialty finance industry that ranks in the bottom 18% of our Zacks Industry Rank. ACAS is the only private equity fund and the largest alternative asset management company in the S&P 500. Earnings revisions recently have seen current year estimates drop from $1.10 to 92 cents and next year's numbers down from $1.41 to 92 cents. These downward revisions come on the heels of ACAS disappointing each of the prior four quarters by an average of 64.02%.
The price and consensus chart could be warning of tough times ahead for ACAS. The recent downturn in the earnings trend could be met with the stock giving up more than we have already seen. Currently the 2014 consensus is close to where it was in 2011 when the stock was trading nearly half where it's trading at today.
3 Utilities Your Portfolio Needs
Utility services play an integral role in the overall development of a country. Among these, power supply keeps the wheel of development rolling. As day-to-day activities seem unimaginable without power, cheap and consistent supply is a prerequisite.
As per a U.S. Energy Information Administration ("EIA") report, total energy use in the U.S. will increase to 107.6 quadrillion Btu in 2040 from 96.3 quadrillion Btu in 2013. Most of this demand is expected to come from the industrial sector followed by the commercial sector.
Greenhouse gas emission during electricity production is one of the biggest challenges faced by the operators. As the U.S. government started focusing on lowering emission and adoption of renewable generation standards in different states, operators too put on their thinking caps and gradually changed their generation mix.
The utilities are shifting loyalties and looking to natural gas and renewable sources for power generation. The proactive steps taken by these operators to harness new sources of energy for green power could take care of the environmental issues. For example, fuel cell technology could be the next big thing in the power generation industry.
Replete with bright prospects, the sector now perhaps offers solid investment opportunities. Stocks with the potential to beat earnings in the upcoming announcement should see faster price appreciation in the short term.
How to Pick the Right Stocks?
Choosing the correct stocks from numerous utility operators may appear an overwhelming task. This is where our proprietary methodology comes in handy. Stocks with the combination of a favorable Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) and a positive Zacks Earnings ESP are the ones that are likely to beat earnings estimates this announcement.
Earnings ESP is our proprietary methodology for determining stocks that have high chances of delivering earnings surprises in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Here are three utility stocks that are currently equipped with the right combination of elements to post an earnings beat.
Newark, NJ-based Public Service Enterprise Group along with its subsidiaries, is engaged in the generation and distribution of electricity and natural gas. The company primarily operates through its two subsidiaries, Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC (Power).
Public Service Enterprise Group currently has $20.04 billion market capitalization and carries a Zacks Rank #1.The earnings ESP for the first quarter is 2.17%. The company surpassed Zacks Consensus Estimate in the last four quarters with an average beat of 7.82%.
Public Service Enterprise Group has a stable customer base spread across commercial, residential and industrial customer classes. The company invested $3.4 billion in five transmissions lines, spent on renewable power and energy efficiency programs. These initiatives will increase reliability and lower energy usage costs. Investment grade credit rating and strong cash flow generation capability will allow the company to fund these ongoing development programs and increase shareholder value.
Public Service Enterprise Group is scheduled to announce its first quarter financial results on April 29.
Detroit, MI-based DTE Energy through its subsidiaries is engaged in regulated and unregulated energy businesses. The company serves nearly 2.1 million electric and 1.2 million natural gas customers in Michigan.
DTE Energy currently has $13.61 billion market capitalization and carries a Zacks Rank #2. The earnings ESP for the first quarter 2014 is 18.31%. The company surpassed the Zacks Consensus Estimate in two out of four quarters with an average beat of 0.96%.
The company has been generating stable returns from its regulated electric and gas utilities in Michigan. Over the next five years, DTE Energy plans to invest $6.7 billion in electric and $1.2 billion in its gas operations.
The focus on increasing renewable power generation, strengthening infrastructure and boosting storage capacity and gas pipelines will allow it to serve an expanding customer base in an efficient manner. Improvement in the state's economy is also driving demand for utility services which will help DTE Energy to sustain its solid run.
DTE Energy is scheduled to announce its first quarter financial results on April 25.
Rosemead, CA-based Edison International through its subsidiaries is engaged in generation and distribution of electricity.
Edison International currently has $18.55 billion market capitalization and carries a Zacks Rank #2.The earnings ESP for the first quarter 2014 is 2.60%. The company surpassed the Zacks Consensus Estimate in the last four quarters with an average beat of 20.55%.
Edison International is focusing on improving its transmission and distribution lines by investing in the range of $15.1 billion to $17.2 billion for the 2014 to 2017 time period. The idea is to strengthen its infrastructure, increase reliability of services, lower operating costs and supply uninterrupted power to its different customer classes.
Edison International is scheduled to announce its first quarter financial results on April 29.
What Lies Ahead?
The need for uninterrupted essential supplies is the fundamental strength of the industry. Government regulations and new pollution standards have made these operators concentrate more on lesser polluting fuel sources to generate power. But the bottom line is that the demand for utilities can never turn obsolete.
For investors looking forward to a regular return on investment, dividend yield from all three utilities mentioned above are higher than industry average of 2.1%. Their stable earnings performance also offer solid reasons to explore the Utility space. Backed by a solid Zacks Rank and positive Zacks Earnings ESP, these could be great ideas for investors to gain from this earnings season.
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.
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 23, 2017 06:45 PM EDT Reads: 2,269
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Apr. 23, 2017 05:30 PM EDT Reads: 775
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Apr. 23, 2017 05:30 PM EDT Reads: 3,574
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale. In his session at @DevOpsSummit at 20th Cloud Expo, Anand Akela, Senior...
Apr. 23, 2017 05:15 PM EDT Reads: 1,457
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 23, 2017 03:30 PM EDT Reads: 1,902
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 23, 2017 03:30 PM EDT Reads: 2,424
SYS-CON Events announced today that Twistlock, the leading provider of cloud container security solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Twistlock is the industry's first enterprise security suite for container security. Twistlock's technology addresses risks on the host and within the application of the container, enabling enterprises to consistently enforce security policies, monitor...
Apr. 23, 2017 03:30 PM EDT Reads: 3,266
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyor belt between the Software Factory and production stages. Artifacts are ...
Apr. 23, 2017 03:15 PM EDT Reads: 764
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
Apr. 23, 2017 03:15 PM EDT Reads: 1,825
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
Apr. 23, 2017 02:45 PM EDT Reads: 1,387
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 23, 2017 02:15 PM EDT Reads: 2,348
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 23, 2017 02:00 PM EDT Reads: 1,577
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 23, 2017 01:45 PM EDT Reads: 1,795
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Apr. 23, 2017 01:15 PM EDT Reads: 4,674
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Apr. 23, 2017 01:00 PM EDT Reads: 1,931