CHICAGO, Feb. 4, 2014 /PRNewswire/ -- Zacks Equity Research highlights Bancorp (Nasdaq: TBBK-Free Report) as the Bull of the Day and PHH Corp (NYSE: PHH-Free Report)as the Bear of the Day. In addition, Zacks Equity Research provides analysis onDeVry Education Group Inc. (NYSE: DV-Free Report), Apollo Education Group, Inc. (Nasdaq: APOL-Free Report) and ITT Educational Services (NYSE: ESI-Free Report).
Here is a synopsis of all five stocks:
With an improving earnings picture and a solid outlook for the industry, this stock climbed to Zacks Rank #1 (Strong Buy) on January 29, 2014.
Founded in 2000,The Bancorp (Nasdaq: TBBK-Free Report)is a financial company that provides private label banking and technology solutions for non-bank companies ranging from entrepreneurial start-ups to those on the Fortune 500.
The company is headquartered in Wilmington, DE. and Gibraltar, and has additional offices in Philadelphia, King of Prussia, Chicago, Crofton, Minneapolis, Orlando, and Sioux Falls.
TBBK's private-label programs focus on four main business segments: Healthcare Solutions, Payment Solutions, Payment Acceptance and Institutional Banking.
Additionally, TBBK offers a full array of lending services, including Commercial Lending, Fleet Management and Leasing, 1031 Exchange Services and Government Guaranteed Lending.
During Q3 of 2013, Prepaid Cards segment accounted for 35% of the revenue, while Community Bank segment accounted for 22%.
Declining estimates for this mortgage lender sent the stock back to a Zacks Rank # 5 (Strong Sell) in November last year.
PHH Mortgage provides outsourced solutions to financial institutions, real estate companies, credit unions, corporations and government agencies. PHH Mortgage is one of the top 10 originators of retail residential mortgages in the country. They also provide home financing directly to consumers.
PHH Arval is a fleet management services provider for corporate clients and government agencies throughout the US and Canada. They currently have over 580,000 automobiles and trucks under management in both sales and service fleets.
Will DeVry (DV) Miss Earnings Estimates Again?
DeVry Education Group Inc. (NYSE: DV-Free Report) is set to report the second-quarter fiscal 2014 results on Feb 4, after the market closes. Last quarter, it posted a negative earnings surprise of 4.35%. Let's see how things are shaping up for this announcement.
Factors to Consider this Quarter
The company has been struggling with its top line as the relatively strong growth in the healthcare and international businesses (growth institutions) is being offset by revenue declines at the flagship DeVry University, which accounts for half of the company's revenues. DeVry University has been witnessing persistent enrollment declines as a result of overall economic downturn and lack of student confidence which has reduced demand. Other schools like Apollo Education Group, Inc. (Nasdaq: APOL-Free Report) and ITT Educational Services (NYSE: ESI-Free Report) have also been hurt by weak student demand.
Enrollment trends at DeVry University are not expected to improve much in fiscal 2014. In the second quarter, revenues are expected to grow at most other institutions, but not DeVry.
Regarding costs, total operating costs are also expected to increase slightly year over year in the second quarter. Costs at growth institutions (like Chamberlain, Ross, Becker and DeVry Brasil) are expected to increase sequentially. However, at transition institutions (like DeVry University and Carrington), costs are expected to decline both year over year and sequentially.
Our proven model does not conclusively show that DeVry 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.
Negative Zacks ESP: The Earnings ESP is -1.33%. That is because the Most Accurate estimate stands at 74 cents while the Zacks Consensus Estimate is higher at 75 cents. That is a difference of -1.33%.
Zacks Rank #4 (Sell): We caution against stocks with Zacks Ranks #4 and 5 (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.