Unit Corporation, RadioShack, Wal-Mart Stores, Euronet Worldwide and MoneyGram International highlighted as Zacks Bull and Bear of the Day
CHICAGO, April 22, 2014 /PRNewswire/ -- Zacks Equity Research highlights Unit Corporation (NYSE: UNT-Free Report) as the Bull of the Day and RadioShack (NYSE: RSH-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onWal-Mart Stores Inc. (NYSE: WMT-Free Report), Euronet Worldwide Inc. (Nasdaq: EEFT-Free Report) and MoneyGram International Inc. (Nasdaq: MGI-Free Report).
Here is a synopsis of all five stocks:
Unit is a Tulsa-based energy company that operates in three segments: exploration and production, contract drilling and gas gathering and processing.
With exploration companies, it's all about how much of the product it can get out of the ground. In 2013, production rose 18% year over year. In oil and natural gas, it was at the upper end of its guidance range.
On Feb 25, Unit was bullish about 2014's production as well. Despite weather delays impacting the first quarter, it still guided 2014 production growth of between 15% and 18%.
Contract drilling was soft in 2013, but Unit managed to maintain consistent utilization. In the fourth quarter, it averaged 65 rigs in operation and saw improvement in the first quarter of 2014 with 69 rigs in operation.
Rising propane and natural gas prices in the first quarter of 2014 should also help the midstream segment in 2014.
RadioShack operates 4300 stores in the United States and 270 stores in Mexico. It also has about 1,000 dealer and other outlets worldwide.
RadioShack has been in a turnaround mode since the middle of 2013.
On Mar 4, it reported fourth quarter results, which included the holiday season, and it again posted a big earnings miss. Earnings were a loss of $1.29 compared to the Zacks Consensus of a loss of just $0.16.
While the holiday season was a tough one for many retailers, it was especially so for RadioShack which saw comparable same store sales plunge 19% due to traffic declines and soft performance in the mobility business.
RadioShack finally took the more extreme measure in March of announcing major store closings. It said it would close up to 1,100 stores which have been selected based on location, area demographics, lease life and financial performance.
But according to the Wall Street Journal, the lenders weren't too happy with the announcement, with some lenders wanting even more stores closed. The parties are apparently in negotiations but this is leaving uncertainty surrounding the company.
Wal-Mart to Unveil Money Transfer Sites
Wal-Mart Stores Inc. (NYSE: WMT-Free Report) has decided to launch a new, lower-priced money transfer service in partnership with Ria Money Transfer, a subsidiary of electronic payments provider Euronet Worldwide Inc. (Nasdaq: EEFT-Free Report) with an aim to expand its financial services business.
The new Walmart-2-Walmart Money Transfer Service will start from Apr 24 and, as the name says, will let customers send and receive cash from family members and friends from one Walmart store in the U.S. to another. The fee is $4.50 for a transfer of up to $50 and $9.50 to send an amount of $800-$900. However, its competitors, in comparison, charge in the range of $4.75-$5.00 for a money transfer of up to $50 and around $57-$76 for transferring an amount of $800-$900.
Amid the dominance of traditional players in the industry, Walmart's new lower priced money transfer service is expected to create a stir in the financial service market. The new service will generate incremental savings for all those millions of customers who do not have bank accounts. As far as Walmart is concerned, it is yet another initiative by the company to boost its finance revenues and revive its store traffic, which grappled with declining same-store sales for four straight quarters in fiscal 2014.
Walmart already offers other money services such as check cashing, bill pay, money orders and tax preparation services, as well as industry-leading pre-paid card programs though Walmart MoneyCard and Bluebird. Last year, Walmart U.S. generated about 1% of annual sales from financial services.
Walmart's shares went up 0.6%, while Euronet shares jumped 4.05% after the announcement. However, the news to launch the new money transfer service pushed shares of other money transfer companies. Shares of MoneyGram International Inc. (Nasdaq: MGI-Free Report), for instance, plummeted 17.7%.
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.