|By PR Newswire||
|April 21, 2014 09:30 AM EDT||
CHICAGO, April 21, 2014 /PRNewswire/ -- Zacks Equity Research highlights Smith & Wesson (Nasdaq:SWHC-Free Report) as the Bull of the Day and H&R Block (NYSE:HRB-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onNetflix, Inc. (Nasdaq:NFLX-Free Report), Amazon (Nasdaq:AMZN-Free Report) and Comcast (Nasdaq:CMCSA-Free Report).
Here is a synopsis of all five stocks:
Stocks in the firearm industry were extremely hot in 2013 as worries over new laws spurred many to buy up guns and ammo before fresh regulations could come into effect. However, any big changes to nationwide gun legislation haven't really taken place, cooling demand for many firearms across the country.
Yet even with the lack of legislative impetus, many stocks in the firearm industry remain well-positioned for further gains, and are actually looking quite promising for 2014 as well. This is particularly true when investors take a closer look at one of the most famous names in the industry, Smith & Wesson (Nasdaq:SWHC-Free Report).
The Springfield, Massachusetts-based arms maker is probably best known for its pistols and revolvers, but the firm is also involved in a variety of rifles and firearm-related products as well. The company is over 150 years old, and it has stood the test of time selling its defense products to individuals, police, military and federal workers.
While the fear of increased gun legislation has certainly boosted volatility in SWHC over the past few years, the stock has moved significantly higher regardless of these worries, and even as these concerns have cooled in recent months, SWHC has remained a top performer. In fact, the stock has added over 80% in the past two years, while it is sporting a 27% gain in the past six months compared to a roughly 7.5% move higher for the S&P 500 in the same time frame.
With tax season finally over, one company is probably still fresh in Americans' minds; H&R Block (NYSE:HRB-Free Report). This Kansas City-based tax preparation company offers up tax advice, do-it-yourself tax return preparation, and advances on tax refunds across the country.
And though while many Americans certainly used their services this past tax season, competitive pressures are certainly building for this company. This is largely thanks to the advent and popularity of Intuit's TurboTax software which is eating away at HRB's core market.
Thanks in part to this pressure, HRB stock has been struggling as of late, as it has underperformed some of its key peers in the past year. Plus, it hasn't helped that HRB has seen sluggish results in international markets too, as this has forced the company to post pretty horrendous results at earnings season, suggesting that HRB has great trouble in meeting expectations.
In fact, over the last four quarters, HRB has missed the Zacks Consensus Estimate every time, with an average surprise of -226%. The company's 'best' miss did come in the key tax season quarter though, but even then the firm missed by nearly 2% when compared to the Zacks Consensus Estimate.
With this recent weakness in mind and some serious competitive pressures building on its lofty stock, it shouldn't be too surprising to note that many earnings estimates have been falling for HRB as of late. In the past 30 days, not a single estimate has gone higher for HRB's earnings outlook, while several have gone lower.
Will Netflix (NFLX) Beat Earnings Estimates?
Netflix, Inc. (Nasdaq:NFLX-Free Report) is set to report first quarter 2014 results on Apr 21. Last quarter, it posted a 21.5% positive surprise. We note that Netflix has outperformed the Zacks Consensus Estimate in the preceding four quarters with an average positive surprise of 30.4%.
Let's see how things are shaping up for this quarter.
Netflix is facing intensifying competition from the likes of Amazon (Nasdaq:AMZN-Free Report), Hulu Plus and HBO. This could lead to lower subscriber growth. Moreover, increasing content costs remain a significant headwind.
Netflix's agreement with Comcast (Nasdaq:CMCSA-Free Report) to pay a fee to improve streaming quality is also expected to increase its operating cost. The additional burden may compel Netflix to increase subscription pricing, which can negatively impact subscriber growth.
Nevertheless, the company's growing subscriber base will continue to be a major growth factor in the near term. Further, the company's partnerships with cable television providers Virgin Media (in the U.K.) and Com Hem (in Sweden) will boost international subscriber base, going forward.
Our proven model does not conclusively show that Netflix is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: Most Accurate estimate stands at 83 cents, which is coincides with the Zacks Consensus Estimate. Hence, the difference is of 0.0%.
Zacks Rank: Netflix's Zacks Rank #1 (Strong Buy) when combined with a 0.0% ESP makes surprise prediction difficult.
We caution against stocks with Zacks #4 and #5 Ranks (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
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.
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 11:30 AM EST Reads: 608
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 7, 2016 11:15 AM EST Reads: 2,279
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
Dec. 7, 2016 11:01 AM EST
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 11:00 AM EST Reads: 968
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Dec. 7, 2016 11:00 AM EST Reads: 960
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze 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, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Dec. 7, 2016 10:45 AM EST Reads: 259
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
Dec. 7, 2016 10:30 AM EST Reads: 915
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
Dec. 7, 2016 10:30 AM EST Reads: 1,478
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Dec. 7, 2016 10:30 AM EST Reads: 1,129
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 7, 2016 10:30 AM EST Reads: 1,700
SYS-CON Events announced today that Fusion, a leading provider of cloud services, 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. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Dec. 7, 2016 10:03 AM EST Reads: 237
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
Dec. 7, 2016 10:00 AM EST Reads: 386
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Dec. 7, 2016 09:30 AM EST Reads: 841
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
Dec. 7, 2016 09:15 AM EST Reads: 1,093
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided 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 sett...
Dec. 7, 2016 09:15 AM EST Reads: 7,240