The Zacks Analyst Blog Highlights: Dell, Heinz, Babcock & Wilcox, Alliant Energy and Altra Holdings
CHICAGO, March 18, 2013 /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 Dell (Nasdaq: DELL), Heinz (NYSE: HNZ), The Babcock & Wilcox Company (NYSE: BWC), Alliant Energy Corporation (NYSE: LNT) and Altra Holdings Inc. (Nasdaq: AIMC).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday's Analyst Blog:
Debt Before Dishonor…
Long bond investors -- domestic and foreign -- are already effectively demanding higher interest rates to compensate them for declining principal values. More importantly, they are declining purchasing power of the U.S. dollar, as inflation erodes it. For foreign investors, the pain of a declining dollar must be offset by a higher interest rate, or capital flows into the U.S. to fund its borrowing will diminish, as they already have to some extent.
Another factor is causing rates to rise: the U.S. economy is finally recovering more strongly, and corporate profits are rising beyond mere post-recession bounce-back. This is spurring interest in equities, and the stock market indices are rising to new record levels, drawing in more domestic and foreign investors.
Simultaneously, commodity and oil and gas prices have backed off highs of last year, and look set to remain tolerable, making consumer confidence rise and moderating costs for business. The energy and pipeline sectors are booming.
As business and equity investment have become more attractive, and credit demand has risen, bonds have become less attractive. Adding to this, house prices finally appear to have bottomed out and are rising again, and new construction is going on. Thus, real estate is once again more attractive; another asset class that is more alluring than bonds.
With both economic growth and inflation now significant, and credit growth rising, it is almost impossible to keep interest rates at a low level. While there remain millions of people who have been unemployed for years, the actual output gap in the economy is nearly closed; that is, output has now recovered to beyond the peak level of late 2007, early 2008.
Foreclosed properties, while still in considerable inventory, are being sold off at a lower, slower pace by banks, bought up by bargain-hunting investors, and rented out.
Private equity firms are finding plenty of attractive acquisition candidates, as evidenced by the recent Dell (Nasdaq: DELL) and Heinz (NYSE: HNZ) deals. Merger and acquisition activity has rebounded, although initial public offerings remain subdued. Motor vehicle sales and aircraft and rail equipment orders are robust.
Babcock & Wilcox in Supply Pact
Engineering firm The Babcock & Wilcox Company (NYSE: BWC) – through its affiliate Babcock & Wilcox Power Generation Group Inc. – has won a contract to deliver, erect and commission a dry flue gas desulfurization system. The contract was awarded by Interstate Power and Light Company – subsidiary of Alliant Energy Corporation (NYSE: LNT) for its 270 megawatt coal-fired Lansing Generating Station in Lansing, Iowa.
Per the deal, Babcock & Wilcox will deliver and erect a circulating dry scrubber (CDS) system for the reduction of sulfur dioxide emission. The supply pact also includes new bags for the plant's existing pulse jet fabric filter.
The CDS technology (also known as Circulating Fluid Bed Flue Gas Desulfurization), will help in reducing emissions from several units. The technology involves low capital and operating expenses, and does not produce waste water.
This environmental equipment will be put up by Babcock & Wilcox Construction Co., which is another affiliate of Babcock & Wilcox.
Construction work on the project is expected to commence in 2014 and be over in 2015. Commissioning and start-up is also slated for 2015.
Earlier this month, Babcock & Wilcox Power Generation Group Inc. also entered into an agreement with FutureGen Industrial Alliance to begin work on the U.S. Department of Energy's FutureGen 2.0 carbon capture and storage (CCS) project. The agreement is for the initial engineering and preparation of the full front-end engineering and design work of the CCS project.
Babcock & Wilcox currently carries a Zacks Rank #1 (Strong Buy), implying that it is expected to outperform the broader U.S. equity market over the next 1 to 3 months.
In addition to B&W, there are other engineering firms in the energy sector like Altra Holdings Inc. (Nasdaq: AIMC), which also sports a Zacks Rank #1 (Strong Buy).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
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: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.
More by this Source
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.