|By PR Newswire||
|August 27, 2014 09:30 AM EDT||
CHICAGO, Aug. 27, 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 iShares MSCI EMU ETF (AMEX:EZU-Free Report), SPDR Euro STOXX 50 ETF (AMEX:FEZ-Free Report), Vanguard FTSE Europe ETF (AMEX:VGK-Free Report), db X-trackers MSCI Germany Hedged Equity Fund (AMEX:DBGR-Free Report) and iShares MSCI United Kingdom ETF (AMEX:EWU-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Eurozone & QE Hints – 3 ETFs to Buy
The European Central Bank (ECB) president Mario Draghi finally signaled that the much-awaited quantitative easing (QE) in the Euro zone could start if the deflationary environment worsens. On August 22, the ECB president noted that the bank was ready to take action with all accessible means if deflation worsens in the common currency bloc.
Investors considered this statement as the start of an asset buyback program or other sorts of stimulus programs. Sensing a potential easing, European stocks spiked to the highest point this month. Several country and regional indexes added over 1%.
The investor cheer is justified as the expected cheap money from ECB should be a boon for the European stocks which, after seeing some rays of hope last year, have again started to languish this year on deflationary worries.
Effectiveness of QE
Previously, QE had proven extremely beneficial for the U.S. and Japanese markets. During the QE era, the key U.S. benchmark S&P 500 skyrocketed about 175%. The U.S. economy also got a boost, leading the Fed to prepare for an end to its QE program by this year.
Another example is the Japan model which basically resembles the Euro zone issues. Japan was weighed down by a 15-year deflationary streak and weak growth. To battle the situation, in April 2013, Bank of Japan instigated $1.4 trillion of quantitative easing to attain a 2% inflation rate within two years. Japan's key benchmark Nikkei index soared about 25% till date since the launch of the monetary stimulus program last April.
Why ECB Could Adopt QE
Quantitative easing is a form of monetary stimulus which is applicable when any other monetary support fails to provide the required momentum to economic indicators. In early June, the ECB announced a cut in its benchmark rate to 0.15% from 0.25%.
Also, the bank introduced a deposit rate of -0.1% which was previously held at zero percent, the first negative case for a major central bank (read: Negative Interest Rates Put These European ETFs in Focus).
The region's annual inflation slipped to a 5-year low in July. The number was 0.4% in July, down from 0.5% in June and 1.6% in July 2013. Negative annual inflation rates were noticed in Greece, Portugal, Spain and Slovakia. Notably, ECB follows a directive to maintain inflation rates close to 2%.
On the GDP front, after posting 0.2% growth rate in Q1, the Euro zone GDP stalled in Q2 confirming that the region's economy is losing steam. Euro zone's powerhouse – the German economy – in fact weakened in Q2. The second largest economy in Euro zone, France, stalled and the third largest economy, Italy, has already slipped into a recession. Fresh banking woes were flashed in Portugal. Unemployment in July reached about 11.5% per a Bloomberg data, not far from the record high of 12% touched last year (read: Where Will Europe ETFs Go After Portugal Banking Woes?).
Though Draghi did not talk about QE in his August 22 dialogue (per Bloomberg) and is still relying on the policy measures adopted in June to perk up Euro area inflation and growth numbers, any further deterioration in the medium-term inflation outlook might force him to go for QE.
Most of the Europe equity ETFs have gained following Draghi's comment. The Stoxx 600 has registered the largest gain (more than 2%) since February last week to reflect investors' optimism about the introduction of asset buyback program (read: ETF Issuers Still Favor Euro Zone: Two European Funds Planned).
Two of the three largest Europe-based ETFs – iShares MSCI EMU ETF (AMEX:EZU-Free Report) and SPDR Euro STOXX 50 ETF (AMEX:FEZ-Free Report) – have advanced about 0.58%, 0.79% and 0.63%, respectively. For investors interested in playing this expected QE euphoria, we present three ETFs below, each of which also has a favorable Zacks ETF Rank as well:
VGK is the largest and most popular ETF in the space with an AUM of $15.5 billion and an average trading volume of more than 3.5 million shares a day. Apart from being the largest, the fund is the cheapest bet in the space charging 12 basis points as fees.
VGK provides a diversified exposure to a large basket of 515 European companies. Sector-wise, Financials occupies the top spot, followed by Consumer Defensive and Health Care. Better-positioned nations including the UK, France, Germany and Switzerland have the biggest allocation in terms of countries.
The fund returned 12.5% in the past one year but was almost flat this year. VGK has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Though Germany sagged in Q2, its economy is sturdier than its other Euro zone counterparts. So, it's better to focus on a German ETF without Euro exposure (as easing makes it a waning currency). Moreover, Germany is an export-oriented nation and poised to benefit from a weakening in the Euro (read: Top Ranked Germany Hedged ETF in Focus).
DBGR is a hedged German equity ETF providing exposure to 55 firms. The fund trades in a lighter volume and has amassed only $42 million in assets. The fund focuses on Materials, Consumer Discretionary and Financials sectors.
Expense ratio came in at 0.45%. DBGR has advanced about 11% in past one year while it has lost 3% to date. DBGR has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
EWU targets the large and mid-cap stocks of the UK. Notably, UK is yet another European market strong enough to navigate through the present doldrums, and unlike its counterparts on the euro, has seen some strength as of late. EWU invests about $4.2 billion in assets in 109 stocks.
The ETF is heavily focused on Financials, Energy and Consumer Staples. In terms of holdings, HSBC, Royal Dutch Shell and BP plc take the top three spots. The fund charges 51 basis point fees per year.
EWU has returned about 2.2% on a year-to-date basis and 14% in the last one-year period. BBH has a Zacks ETF Rank #1 with a Medium risk outlook.
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.
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.
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.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Mar. 26, 2017 12:30 AM EDT Reads: 1,830
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Mar. 26, 2017 12:30 AM EDT Reads: 5,147
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
Mar. 26, 2017 12:30 AM EDT Reads: 2,870
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 26, 2017 12:15 AM EDT Reads: 709
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Mar. 26, 2017 12:00 AM EDT Reads: 4,103
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 26, 2017 12:00 AM EDT Reads: 1,689
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
Mar. 25, 2017 11:15 PM EDT Reads: 2,912
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
Mar. 25, 2017 10:45 PM EDT Reads: 3,615
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Mar. 25, 2017 09:45 PM EDT Reads: 3,556
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Mar. 25, 2017 08:45 PM EDT Reads: 5,974
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 25, 2017 08:45 PM EDT Reads: 2,759
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Mar. 25, 2017 06:15 PM EDT Reads: 2,562
SYS-CON Events announced today that Ocean9will 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Mar. 25, 2017 05:15 PM EDT Reads: 1,935
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Mar. 25, 2017 04:00 PM EDT Reads: 510
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle.
Mar. 25, 2017 04:00 PM EDT Reads: 2,831