JinkoSolar Holding, Elizabeth Arden, Tata Motors, Westport Innovationsand Volkswagen highlighted as Zacks Bull and Bear of the Day
CHICAGO, Feb. 14, 2014 /PRNewswire/ -- Zacks Equity Research highlights JinkoSolar Holding (NYSE: JKS-Free Report) as the Bull of the Day and Elizabeth Arden (Nasdaq: RDEN-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onTata Motors Limited (NYSE: TTM-Free Report), Westport Innovations Inc. (Nasdaq: WPRT-Free Report) and Volkswagen AG (OTC:VLKAY-Free Report).
Here is a synopsis of all five stocks:
The solar industry was one of the biggest winners in 2013 as this lean sector soared on strong earnings and an investor belief that the space has finally grown up into a profitable segment. However, to start this year, gains have been a bit harder to come by, as many companies in the space have seen weakness in their share prices.
Yet this weakness to start 2014 may actually be a great buying opportunity for investors, as the strong solar growth story is still intact for the most part. Panel installation and demand are both surging, and with Europe (one of the key solar power markets) back on track, the future appears very bright for this industry.
While there are a number of companies that can take advantage of this trend, a look to vertically-integrated firms that have a global focus could be a great way to play the second leg up in solar power. One that stands out is definitely JinkoSolar Holding (NYSE: JKS-Free Report), a China-based company that specializes in low-cost production and supply of solar panels.
JinkoSolar has really made a name for itself since starting off as a wafer supplier in June 2006, as currently the company has annual integrated production capacity of over 1.2GW for silicon wafers, solar cells and modules. The firm has customers around the world, including its home market of China, but also European customers (such as Germany, Italy, and Spain), and the United States as well.
Recent trading has been very rough for retailers as intense competition and worries over consumer demand have crushed many stocks in this space. One company that has been particularly impacted by this trend is undoubtedly Elizabeth Arden (Nasdaq: RDEN-Free Report).
RDEN in Focus
Elizabeth Arden is a Florida-based beauty products company, which makes, markets, and sells a variety of cosmetic products along with skin care items and fragrances. The firm also has a wide variety of celebrity-braded fragrances, and generally distributes its products to department and specialty stores.
While the company recently beat estimates, edging out the Zacks Consensus Estimate by a single penny, it is the outlook that was extremely troubling for RDEN. The company slashed its outlook for the full year, forcing analysts to drastically reduce their expectations for Elizabeth Arden's earnings.
Thanks to this reduced guidance and the extremely tough environment for discretionary retailers, the earnings outlook for RDEN has crashed in recent sessions. In fact, the full year estimate for 2014 earnings has cratered by over 50% in the past year, though much of the slump in expectations has taken place in the past month following the drastic guidance cut by RDEN management.
The current quarter Zacks Consensus Estimate has plunged from 20 cents a share 30 days ago, to just two cents a share today, an enormous cut in profit expectations. Current year expectations aren't much better, falling from $2.19/share 30 days ago to $1.46/share today.
Tata Motors Rolls Out Nat Gas Engine
Tata Motors Limited (NYSE: TTM-Free Report) has launched a new natural gas engine that uses the Westport WP580 Engine Management System (EMS) of Westport Innovations Inc. (Nasdaq: WPRT-Free Report). The spark-ignited 3.8L turbocharged engine was recently showcased at India's Auto Expo in New Delhi.
Tata Motors is also planning to use the Westport WP580 EMS in a new 5.7L engine later this year. This engine will be aimed at medium-duty vehicles.
The Westport WP580 EMS uses an advanced combustion control technology which provides excellent fuel efficiency and torque and reduces emissions. In fact, it enables vehicles to meet the Euro VI emission standards. Moreover, it provides pricing benefits, enabling natural gas vehicles to be manufactured and sold at lower costs.
India is among the biggest commercial vehicles markets in the world, with one of the largest natural gas light-duty vehicle fleets. It is also one of the fastest growing markets for natural gas vehicles. Thus, the new natural gas engine should help Tata Motors, India's largest automobile company, to acquire a greater share of this lucrative market.
Tata Motors is one of the largest passenger and commercial vehicle manufacturers in India. It is also the fifth-largest truck manufacturer and fourth-largest bus manufacturer in the world. Westport Innovations specializes in natural gas engine and fuel system technologies and aims to reduce emissions and fuel costs of vehicles.
Tata Motors currently carries a Zacks Rank #1 (Strong Buy), while Westport Innovations carries a Zacks Rank #3 (Hold). Another stocks worth considering in the auto industry is Volkswagen AG (OTC:VLKAY-Free Report), which carries a Zacks Rank #2 (Buy).
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