Zacks Bull and Bear of the Day Highlights: Prestige Brands, J.C. Penney, United Parcel Service, FedEx and CH Robinson Worldwide
CHICAGO, Feb. 14, 2013 /PRNewswire/ -- Zacks Equity Research highlights Prestige Brands (NYSE: PBH) as the Bull of the Day and J.C. Penney (NYSE: JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on United Parcel Service Inc. (NYSE: UPS), FedEx Corporation (NYSE: FDX) and CH Robinson Worldwide Inc. (Nasdaq: CHRW).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Consumer staple stocks don't have to fall in the "defensive only" category, nor do they have to offer sub-par performance in a booming stock market. This is especially true if they are strong, growing brands under good management.
One company that fits this description and stands out among their peers is Prestige Brands (NYSE: PBH). Prestige markets, sells and distributes over-the-counter healthcare, household cleaning products and personal care products to retail outlets in the US, Canada, and certain international markets.
Their recognizable brands can be found around your home and medicine cabinet, they include everything from Luden's cough drops and Tagamet to Comet cleaner, Cloreseptic, Clear Eyes drops and more.
Most people wouldn't expect a 100% annual return from a staple stock like PBH, but that's exactly what shares have done since I last mentioned them on February 16th, 2012 as a momentum stock.
Sometimes "turn-around" stocks never turn fully around. Companies like K-Mart, Kodak, Drug Emporium and even Sears have demonstrated just how difficult it can be to change the direction of a brand that is faltering and/or reinvent a company after it has lost relevance.
J.C. Penney (NYSE: JCP) has been trying to reinvent itself for some time now. The company has been searching for its soul and its place between higher end department store competitors like Macy's, Neiman Marcus and Sachs and the discounters like Target, Walmart and Marshalls.
It's been a year since the struggling department store instituted a drastic plan to get rid of most sales in favor of everyday low prices and dramatically change the look and feel of their stores. CEO Ron Johnson is working to transform every part of the business from the brands it carries to the store experience, but the overhaul has been more challenging than expected and shareholders are getting frustrated.
At the end of the month (February 27th) JCP is expected to report earnings. According the Zacks ESP, which is registering a negative 130% on an expected loss of 13 cents, it won't be pretty in all likelihood. In fact, JCP has logged four consecutive quarters of big sales drops and net losses since it implemented its new pricing strategy.
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Logistics Firms Heart Valentine's Day
With Valentine's Day right around the corner, lovers are in a hurry to send gifts to their sweethearts. This translates into solid business for logistic companies by delivering gifts to our doorsteps.
Thanks to the millions of celebrants across the globe, Valentine's Day remains special for logistics firms. The event drives a surge in sales for these firms.
According to latest reports by National Retail Federation, average Valentine's Day individual spending is expected to be $130.97, up from $126.03 last year. This brings total cash outflows to an estimated $18.6 billion this Valentine's Day.
The federation also reported that a large chunk (approximately 50%) of these expenditures would be on candies and other edible products followed by flowers, accounting for approximately 30%. The rest would include expenditures on valuable items like jewelry and apparels. If these figures set the retail industry on the go, the packaging industry will not remain far behind from benefiting from the Big Day.
United Parcel Service Inc. (NYSE: UPS) recently reported that it expects to ship nearly 95 million flowers through its network. In addition, it has joined with companies like Vermont Teddy Bear Company, LobsterGram Inc. and Fairytale Brownies to ship Valentine's Day goodies for incremental revenues.
To support timely deliveries with utmost care these packaging companies also remain equipped with proper facilities like temperature control containers, express delivery services, massive warehousing and hassle-free customs clearance. Companies like UPS have also set up 130 additional flight services for its customers.
Globalization has indeed brought the world so close that every individual is connected with a matrix of various networks governed by modern technology. Whether this has simplified our lives or made it more complicated remains subjective, but surely it has driven trade and economics to a level where any event (good or bad) has a global impact. Apart from other factors, globalization has certainly given a boost to e-commerce and largely influenced consumer behavior.
Reaping benefits from the current trends, logistic companies like UPS,
CH Robinson Worldwide Inc.
) are generating a good amount of their business from events like New Year and Christmas, celebrated worldwide. With the help of an expanded market reach and advanced infrastructure, freight carriers are now able to maximize profitability with shipments across the globe.
The usual business days aside, periods like the holiday season and special events like Valentine's Day remain important sales boosters. These generally provide an uptick in sales in an otherwise lackluster demand environment.
Overall, we expect this Valentine's Day to cheer up packaging companies with good volumes that would ultimately reflect in their quarterly results. Amid economic upheavals, fiscal cliff debacle and nearing of budget sequester, we believe Valentine's Day will bring some relief for the parcel companies.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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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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