News Feed Item

The Zacks Analyst Blog Highlights:EOG Resources, Toyota Motor, Volkswagen, Tata Motors and Daimler

CHICAGO, April 17, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the EOG Resources (NYSE:EOG-Free Report), Toyota Motor Corp. (NYSE:TM-Free Report), Volkswagen AG (OTC:VLKAY-Free Report), Tata Motors Ltd (NYSE:TTM-Free Report) andDaimler AG (OTC:DDAIF-Free Report).

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

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday's Analyst Blog:

"Springtime for Putin"

The crisis in Ukraine and the confrontation with Russia will not automatically bring new U.S. Liquified Natural Gas, 'LNG,' projects through approval, development and commercialization, even in the medium term, let alone substantial, lucrative exports to Western, Black Sea and Baltic LNG import terminals. Nor is such gas entirely available, although politicians, and producers, on both sides of the Atlantic wish it were already so.

Fortunately, many of those import terminals already exist, and could be expanded to accommodate more imports from abroad: Africa, the Middle East, and Latin America, along with (eventually) North America. There is also enough North American supply to send overseas at a profit at the current price differential.

The probability, and the opportunity of more U.S. LNG plants being constructed have certainly increased.  The good thing is that there is abundant North American shale and coal bed gas, several pipelines to the Atlantic coast, and many motivated companies with capital eager to fund such projects.  However, political support has been lukewarm, particularly in New York State, Quebec and in Washington, DC, but the geopolitical situation could change minds and attitudes, or at least reduce some of the obstacles.  Ottawa and Mexico City are entirely onside.

The main beneficiaries continue to be the best shale operators, such as EOG Resources (NYSE:EOG-Free Report), among others.

We're Moving at a Faster Pace

It takes a year or more to get environmental and other approvals, and another two to three years and billions of dollars to construct new LNG liquifaction plants and export terminals. Some players have been burned in the past, and there is no assurance to them that these projects will be as lucrative as they appear on paper. However, nearly twenty of them are already mooted for the U.S. East coast.

Thus far, Canadian action on the Atlantic side has been muted, but two oil pipeline projects with high chances of approval and actual construction are in the works. None of these plans nor the U.S. gas plants, will be fully realized before 2018, at the earliest, so, in the short term, the EU, and the Ukrainians, will be mostly on their own. Nevertheless, as indicated earlier, they are not without options, or bargaining power and resources of their own.

3 Foreign Auto Stocks Ready to Burn Rubber

The surge in auto sales in 2013 and an optimistic outlook for 2014 have put the automobile sector in focus. Global auto sales hit a record high of 82.8 million units in 2013, per the data provided by IHS Automotive.

While most automobile manufacturers were hit hard by the recession, the resultant pent-up demand is working in their favor now that employment rates are improving and consumers have recovered from the impact of the recession.

A plunge in car sales in the years following the recession have led to an all-time high average age of vehicles on U.S. roads of 11.4 years. This is resulting in significant replacement demand. Moreover, with the recovery of global markets, sales in other nations are also improving.

Asian countries, especially China and India, are recording impressive sales growth and are expected to account for a large part of the growth in the auto industry over the next 5 to 7 years. Even the European automobile market is beginning to show improvement.

Globally, 2 of the 3 largest selling automakers in 2013 were non-U.S. companies – Toyota Motor Corp. (NYSE:TM-Free Report) and Volkswagen AG (OTC:VLKAY-Free Report). Moreover, the Auto-Foreign industry has a Zacks Industry Rank of #13 at present, which translates into a Positive outlook. Meanwhile, the Auto-Domestic industry has a Zacks Industry Rank of #99, which refers to a Neutral outlook. Thus, it would be a good idea to invest in some foreign auto stocks that are performing well.

Here are three automakers based outside the U.S. that are looking good at the moment:

Japan-based Toyota is the leading automaker in the world in terms of sales and production. Its product portfolio consists of a full range of models from passenger cars and minivans to trucks as well as related parts and accessories.

Toyota is currently trading at a forward price-to-earnings (P/E) ratio of 8.7x, which is significantly lower than the industry average of 15.6x. It has a price-to-book (P/B) ratio of 1.1x, which is at a discount to the industry average of 2.9x. Even the price-to-sales (P/S) ratio of 0.8x is lower than the industry average of 2.5x.

This Zacks Rank #1 (Strong Buy) stock is expected to report a 55.5% year-over-year growth in earnings per share (EPS) in the fiscal year ended Mar 2014.

Tata Motors Ltd (NYSE:TTM-Free Report) is the largest automobile company in India. It is also the fifth largest truck manufacturer and the fourth largest bus manufacturer in the world.

Tata Motors also has a P/E ratio of 8.5x, which offers a significant discount on the industry average of 15.6x. Its P/B of 2.6x is marginally lower than the industry average of 2.9x. It has a P/S of 0.6x, also below the industry average of 2.5x.

Tata Motors reported a positive earnings surprise in three of the trailing four quarters, with an average beat of 22.68%. This Zacks Rank #1 stock is expected to report 26.6% year-over-year growth in EPS in the fiscal year ended Mar 2014.

Germany-based Daimler AG (OTC:DDAIF-Free Report) manufactures and sells passenger cars, trucks, vans, buses, and related spare parts and accessories. This Zacks Rank #1 stock owns the premium vehicle brand Mercedes-Benz.

Daimler has a P/E ratio of 11.1x, significantly below the 15.6x industry average. Its P/B and P/S of 1.6x and 0.6x, respectively, are also substantially lower than the respective industry averages.

Daimler is expected to report a 16.9% year-on-year surge in EPS in 2014.

Bottom Line

Global automobile sales are expected to rise to 85 million units in 2014, according to IHS Automotive. Even the 100 million unit milestone is not far and is expected to be reached in 2018.

Rising sales should translate into higher gains for auto stocks. Thus, adding some automobile stocks with strong fundamentals and growing earnings to the portfolio might prove to be beneficial for investors.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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 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. Subscribe to this free newsletter today.

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! Register for your free subscription to Profit from the Pros.

Get the full Report on EOG - FREE

Get the full Report on TM - FREE

Get the full Report on VLKAY - FREE

Get the full Report on TTM - FREE

Get the full Report on DDAIF - FREE

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.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]


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
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...