|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.
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
May. 25, 2016 02:45 PM EDT Reads: 1,413
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
May. 25, 2016 02:30 PM EDT Reads: 1,848
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
May. 25, 2016 02:15 PM EDT Reads: 2,104
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
May. 25, 2016 02:00 PM EDT Reads: 1,507
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. 25, 2016 02:00 PM EDT Reads: 1,122
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
May. 25, 2016 02:00 PM EDT Reads: 1,013
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. 25, 2016 01:45 PM EDT Reads: 915
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. 25, 2016 01:30 PM EDT Reads: 2,475
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 25, 2016 12:45 PM EDT Reads: 1,162
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 25, 2016 12:45 PM EDT Reads: 907
Cloud-based NCLC (No-code/low code) application builder platforms empower everyone in the organization to quickly build applications and executable processes that broaden access, deepen collaboration, and enhance transparency for all team members. Line of business owners (LOBO) and operations managers know best their part of the business and their processes. IT departments are beginning to leverage NCLC platforms to empower and enable LOBOs to lead the innovation, transform the organization, an...
May. 25, 2016 12:00 PM EDT Reads: 1,653
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
May. 25, 2016 11:00 AM EDT Reads: 3,285
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 25, 2016 11:00 AM EDT Reads: 840
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. 25, 2016 10:15 AM EDT Reads: 395
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
May. 25, 2016 10:00 AM EDT Reads: 1,838