CNA Financial, Embraer, SodaStream International, Fresh Del Monte Produce and Prestige Brands Holdingshighlighted as Zacks Bull and Bear of the Day
CHICAGO, Nov. 18, 2013 /PRNewswire/ -- Zacks Equity Research highlights CNA Financial (NYSE: CNA-Free Report) as the Bull of the Day and Embraer (NYSE: ERJ-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onthe SodaStream International Ltd. (Nasdaq: SODA-Free Report), Fresh Del Monte Produce Inc. (NYSE: FDP-Free Report) and Prestige Brands Holdings, Inc. (NYSE: PBH-Free Report).
Here is a synopsis of all five stocks:
Although recent troubles with the Affordable Care Act's rollout have called into question some in the insurance world, companies in the property and casualty segment are looking quite strong. And with some positive trends on the interest rate front, this could definitely continue into the near future.
That is why investors might want to consider this impressive industry for exposure, as it currently has earned itself a top five (out of over 250) industry rank, putting the property/casualty space into the top 2% of all industries. While there are a number of great choices in this space, one company, CNA Financial (NYSE: CNA-Free Report), stands out as a great pick at this time.
CNA is a Chicago-based firm (which is actually a Loewssubsidiary) that provides insurance products to businesses and middle market organizations both in the U.S. and internationally. It focuses on property insurance, management and professional liability insurance, and also risk management services as well.
This has been a pretty solid combination for the company, and CNA had another great quarter at its latest quarterly earnings release. In this release, the company easily beat estimates, reporting earnings of $1.00/share, crushing our consensus estimate of 76 cents a share.
As airlines have seen their shares prices takeoff lately, many are starting to feel a bit more optimistic on the makers of planes too. This largely centers around four companies: Boeing, Airbus, Bombardier, and Embraer (NYSE: ERJ-Free Report) which have a dominant position over the jet market.
However, these four are very different, as Boeing and Airbus dominate the large aircraft while Bombardier has a nice hold on the smaller vehicles (such as the business-focused Learjet brand). Meanwhile, Embraer generally fills the niche in between, zeroing in on smaller regional jets for most of its portfolio.
However, as airlines have combined, a new landscape has emerged. Generally speaking, new huge fuel-efficient jets have come on line from Boeing (787) and Airbus (A350), and as smaller planes have come back into vogue a bit, Embraer has largely been left in the dust.
The company is being squeezed on both ends and is having trouble finding a niche in this new competitive environment. Plus, since the company is Brazilian-based, a host of other issues have cropped up lately as well.
Since ERJ is a Latin America-focused company, recent weakness in the region hasn't exactly helped the company prosper. A weakened outlook for Brazil, coupled with Brazilian real uncertainly against the dollar, hasn't helped matters either, especially for U.S. based investors.
SodaStream and Del Monte Join Forces
Leading manufacturer of home beverage carbonation system, SodaStream International Ltd. (Nasdaq: SODA-Free Report) recently partnered with Del Monte, a well-established brand of Fresh Del Monte Produce Inc. (NYSE: FDP-Free Report).
Under the alliance, SodaStream will produce, market, distribute and sell several Del Monte branded syrup flavors that can be used on its popular soda-making machines to make carbonated beverages. At a nascent stage, the company will offer fruity flavored options like Tropical, Caribbean and Orange.
Though the financial terms of the deal were not disclosed, both the companies have agreed to launch the products during summer 2014 in Italy and the U.K.
Fresh Del Monte is engaged in manufacturing and supplying fresh produce including fruits and vegetables and other products like juices, beverages, snacks and desserts across Europe, Middle East and Africa. The company, which operates under the brand name Del Monte, boasts a solid presence in the market since 1886. Following this tie-up, Del Monte will step into the market of homemade sparkling drinks.
The partnership with SodaStream will facilitate both the companies to reach out more extensively to the growing number of consumers who prefer carbonated beverages. Soda-making systems offer a healthier way to enjoy such beverages at home.
Last month, SodaStream teamed up with a renowned lifestyle magazine brand, Cooking Light, to launch healthy fruit-flavored syrups. These beverages will be offered in Passion fruit-Mango and Kiwi-Pear flavors and will be available from the first quarter of 2014.
These partnerships will not only enhance the visibility of SodaStream's brand, but will also ensure consumer acceptance in the U.S., where the demand for carbonated drink is very strong.
SodaStream carries a Zacks Rank #3 (Hold). Some other players in the consumer product industry which look attractive at present includesPrestige Brands Holdings, Inc. (NYSE: PBH-Free Report). All the companies hold a Zacks Rank #2 (Buy).
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.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.
More by this Source
Zacks Investment Ideas feature highlights: Bank of Ireland, CRH and Fly Leasing
Mar 14, 2014, 09:30 ET
Zacks Industry Outlook Highlights: Staples, Macy's, Nordstrom and Chico's FAS
Mar 14, 2014, 09:30 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.