Zacks Bull and Bear of the Day Highlights: Big 5 Sporting Goods, FujiFilm Holdings, Mondelez International, International Business Machines and Kraft Foods Group
CHICAGO, Dec. 31, 2012 /PRNewswire/ -- Zacks Equity Research highlights Big 5 Sporting Goods (Nasdaq: BGFV) as the Bull of the Day and FujiFilm Holdings (OTC:FUJIY) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Mondelez International, Inc. (Nasdaq: MDLZ), International Business Machines Corporation (NYSE: IBM) and Kraft Foods Group Inc. (Nasdaq: KRFT).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Bull of the Day:
Big 5 Sporting Goods (Nasdaq: BGFV) was upgraded from Neutral to Outperform after back-to-back quarters of positive earnings surprises along with an encouraging guidance for the fourth quarter of fiscal 2012.
Driven by strong top-line performance along with effective cost management, Big 5 Sporting s earnings of $0.38 per share for third-quarter 2012 came 44.4% higher than the year-ago quarter earnings and handily surpassed the Zacks Consensus Estimate of $0.32. The company now anticipates earnings per share in the range of $0.13 $0.21 per share in fourth-quarter fiscal 2012
We believe the company's top line will augment in the future with the strategy of resuming the store expansion program. Moreover, the company's new business intelligence system and distribution channel will help significantly reduce the operating expenses. Our target of $14.00 is based on 20x EPS estimates.
FujiFilm Holdings (OTC:FUJIY) was recently downgraded from Neutral to Underperform. The downgrade was based on the troubles in revenue generation the company is expected to see.
In the most recent quarter revenue fell 1.8% from the year ago period in part due to the European debt crisis. The company is having a difficult time maintaining its traditional business in the midst of the digitalization phase of growth. Ever increasing raw materials prices are also a concern.
Tokyo based Fujifilm Holdings Corporation is a leading global producer of photographic imaging products. The company develops, manufactures, and markets traditional and digital imaging products.
We have a long term Underperform recommendation on the stock. Our target price of $17.00 is based on 13.4x 2013 EPS estimates.
Latest Posts on the Zacks Analyst Blog:
Mondelez, IBM Extend Partnership
Mondelez International, Inc. (Nasdaq: MDLZ) (formally known as Kraft Foods Inc), and International Business Machines Corporation (NYSE: IBM) recently announced that they will extend their partnership till September 2015. The partnership will help Mondelez International establish three SAP instances in three years.The partnership will result in execution of the Catalyst CEEMA Wave 4 project, which is now operating in Eastern & South East Europe, Middle East and Northern Africa region. The project is expected to complete in 2014 and bring 22 countries in the Central and Eastern Europe (CEE) and Middle East and Africa (MEA) region under one enterprise resource planning (ERP) platform along with the EU region.
This multi-year partnership will help Mondelez International improve its efficiency and optimize its resources in the long term.
Following the spin off of Kraft Foods Group Inc. (Nasdaq: KRFT) from Kraft Foods, Inc. on October 1, 2012, the erstwhile Kraft Foods, Inc has been renamed Mondelez International and now comprises only its global snacks business. Mondelez International produces and markets packaged food products, including snacks, beverages, cheese, convenient meals and various packaged grocery products. The company has popular brands like Cadbury, Jacobs, LU, Milka, Nabisco, Oreo, Tang and Trident.
Mondelez International intends to expand its strong presence in the fast growing snacks business, particularly in emerging markets. The company intends to focus on increasing its revenue and earnings, optimizing costs and improving its margin through better volume and product mix. The partnership with IBM will help the company achieve its targets.
We currently have a Neutral recommendation on Mondelez International, Inc. The stock carries a Zacks #3 Rank (a short-term 'Hold' rating).
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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.
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