Bancorp, PHH, DeVryEducationGroup, ApolloEducationGroup and ITT Educational Serviceshighlighted as Zacks Bull and Bear of the Day
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.
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