News Feed Item

RCS Capital, hhgregg, ArcelorMittal, U.S. Steel and AK Steel highlighted as Zacks Bull and Bear of the Day

CHICAGO, Aug. 27, 2014 /PRNewswire/ -- Zacks Equity Research highlights RCS Capital (NYSE:RCAP-Free Report) as the Bull of the Day and hhgregg (NYSE:HGG-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on ArcelorMittal (NYSE:MT-Free Report), U.S. Steel (NYSE:X-Free Report) and AK Steel (NYSE:AKS-Free Report).

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

Here is a synopsis of all five stocks:

Bull of the Day:

In the Zero Interest Rate Policy world, many investors have struggled to find reasonable yields. You either have to increase your maturities on your bonds and buy them further out or you have to make concessions on the credit quality. Either way you are essentially increasing your risk in order to increase your income. While that may be perfectly acceptable for some, it's not acceptable for seniors who are looking for income to fund their retirement lifestyle.

The options have become increasingly limited. Investment grade corporate bonds have yields near twenty year lows right now and sovereign debt is paying virtually nothing. As a result, people have looked in other areas or alternative investments in order to find yield.

One company has entered this space and helped baby boomers find income from real estate investment trusts that hold some of the highest quality real estate money can buy. RCS Capital (NYSE:RCAP-Free Report) is a wholesale broker-dealer and an industry leading multi-product distributor of sector-specific direct investment programs. The distributed investment programs are designed to provide "Durable Income" and capital preservation.

Basically this company wants you to diversify your current investment portfolio into one of their REITs or other alternative investments. Right now only about 3% of the $7.5 trillion of investable assets the Mass Affluent of America have is invested in alternative and direct investments. RCS sees this as a huge opportunity for them to grab market share.

Bear of the Day:

The electronics retail business is a tough one. If you don't believe me, go ask Best Buy. They've been struggling to become more than Amazon's show room for quite some time. With the ease of access to products via the internet, investing tons of money in a brick and mortar location is becoming less and less profitable. You could look back and find plenty of examples of these types of locations going under and ultimately going broke.

That's why I can't help but think of today's Bear of the Day, hhgregg (NYSE:HGG-Free Report), as the next Circuit City. Remember that old electronics store that lost out to Best Buy and went under? I've set foot in an hhgregg location that was in the same building that used to house Circuit City. And there they were, selling electronics just like Circuit City did before going under.

I actually enjoyed my shopping experience at HGG. The people working there were very friendly and helped me pick out a computer for my Mom's Christmas present. I got a great deal and thought to myself, "How can this place stay in business selling things this cheap?"

That's exactly what hhgregg does. They are a specialty retailer of premium video products, appliances, audio products, computers and accessories with seventy nine stores in Alabama, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee. If you ever go to one I'm sure you'll see it the same way that I did, like a Circuit City.

Analysts are equally unimpressed with this Zacks Rank #5 (Strong Sell). Over the last 30 days, ten analysts have lowered their earnings estimates for the current quarter, next quarter, and the current year. Next year isn't looking much better as eight analysts lowered their bar. The revisions have pushed the consensus estimate for the current year down from a 12 cent gain to a 31 cent loss per share. Next year's numbers have fallen from a 12 cent gain to a 21 cent loss.

Additional content:

China, U.S. Lift Global Steel Production

Global crude steel output rose for a sixth consecutive month in July as gains across China and the U.S. offset a decline in the European Union – according to a recent World Steel Association ("WSA") report. Healthy gains across the Middle East and Africa also supported the growth. However, the pace of growth slowed on a monthly basis in the reported month.

According to the international trade body for the iron and steel industry, crude steel production for 65 reporting nations nudged up 1.7% year over year in July to 137 million tons (Mt). This follows a 3.1% gain last month.

By regions, production data paints a generally positive picture with gains registered across all areas barring the European Union.

Growth was seen across major Asian producers except Japan – the second largest producer – which saw a flat production at 9.3 Mt. Higher sales tax is affecting steel demand in that country. Output from China – the world's biggest steel maker – went up 1.5% year over year to 68.3 Mt in July. Production in India, the fourth-largest producer, rose 1.7% to around 7 Mt. South Korea raked in a 6.2% gain to 5.9 Mt. Consolidated output were up 1.7% to 92.4 Mt in Asia.   

In North America, crude steel production rose 2.3% to 7.6 Mt in the U.S. – the third-largest steelmaker. Output in Canada went up 5.7% to around 1.1 Mt. Overall production for the region was up 2% to roughly 10.4 Mt.  

In the Europe Union, production from Germany – the biggest producer in the region – rose 1.5% to 3.4 Mt. Output fell 3.6% in Italy to 2 Mt while rising 1.6% to 1.4 Mt in France. Spain saw a 5.9% rise to 1 Mt. Production slipped 4.4% in the UK to around 1 Mt. Total output dipped 2% in the European Union to 13.3 Mt.

Output in the Middle East moved up 8.3% to 2.4 Mt with healthy gains witnessed across Iran, Qatar and Saudi Arabia. Africa logged a solid 21.2% gain to 1.5 Mt in the reported month.

Among other notable producers, production from Turkey was up 1% to 2.8 Mt. Russia saw a healthy 8.1% rise to 6.2 Mt while Ukraine – which have been battered by fierce conflict with Russia – recorded a 11.7% decline to 2.5 Mt. Output from Brazil, the largest producer in South America, inched up 0.5% to 2.9 Mt.

Crude steel capacity utilization ratio for the reporting countries was 75.4% in July 2014, down from 76.6% a year ago and 78.3% in the previous month.

Steelmakers globally remain hobbled by challenging market fundamentals and weak pricing. Overcapacity in the industry, a flood of cheap imports and weak demand in Europe hammered steel prices for the most part of 2013, hurting margins of major producers including ArcelorMittal (NYSE:MT-Free Report), U.S. Steel (NYSE:X-Free Report) and AK Steel (NYSE:AKS-Free Report).

With the global economy gradually on the mend and activities picking up in the construction sector, 2014 promises to be a transition year for the steel industry. The WSA sees continued recovery in steel demand and expects global steel usage to increase 3.1% this year and further rise 3.3% in 2015. Improving demand is also expected to jack up steel prices.

However, the industry faces challenges in form of an expected deceleration in steel usage in China due to a slowdown in the country's housing market and weaker infrastructure investment growth.

Nevertheless, a gradually healing economy, strength in the automotive market and a rebound in non-residential construction and housing markets should provide a much-needed thrust to the U.S. steel industry this year. Moreover, an expected rise in steel usage in the Euro-zone on the back of a flourishing auto sector and a recovering construction market looks encouraging after a lumpy 2013.

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

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.

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 RCAP - FREE

Get the full Report on HGG - FREE

Get the full Report on MT - FREE

Get the full Report on X - FREE

Get the full Report on AKS - 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]

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.

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
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...
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...
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 settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
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...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
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...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo 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 ov...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises - and delivering real results.
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.