|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.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Jul. 30, 2015 07:00 AM EDT Reads: 1,671
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Jul. 29, 2015 11:45 PM EDT Reads: 1,367
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 11:45 PM EDT Reads: 1,022
"We have been in business for 21 years and have been building many enterprise solutions, all IT plumbing - server, storage, interconnects," stated Alex Gorbachev, President of Intelligent Systems Services, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 10:45 PM EDT Reads: 1,027
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Jul. 29, 2015 05:30 PM EDT
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 05:15 PM EDT Reads: 363
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
Jul. 29, 2015 04:30 PM EDT Reads: 501
"Alert Logic is a managed security service provider that basically deploys technologies, but we support those technologies with the people and process behind it," stated Stephen Coty, Chief Security Evangelist at Alert Logic, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 04:15 PM EDT Reads: 328
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Jul. 29, 2015 04:00 PM EDT Reads: 1,070
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to tran...
Jul. 29, 2015 03:15 PM EDT Reads: 396
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Jul. 29, 2015 03:15 PM EDT Reads: 241
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jul. 29, 2015 03:00 PM EDT Reads: 468
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Jul. 29, 2015 03:00 PM EDT Reads: 1,258
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Jul. 29, 2015 02:30 PM EDT Reads: 326
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Jul. 29, 2015 02:30 PM EDT Reads: 110