Cincinnati Financial, Coach, Magellan Midstream Partners, Pioneer Southwest Energy Partners and Energy Transfer Partners highlighted as Zacks Bull and Bear of the Day
CHICAGO, Oct. 28, 2013 /PRNewswire/ -- Zacks Equity Research highlights Cincinnati Financial (Nasdaq:CINF-Free Report) as the Bull of the Day and Coach (NYSE:COH-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis ontheMagellan Midstream Partners LP (NYSE:MMP-Free Report), Pioneer Southwest Energy Partners LP (NYSE:PSE-Free Report) and Energy Transfer Partners LP (NYSE:ETP-Free Report).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Here is a synopsis of all five stocks:
It has been a pretty great time to be in the property/casualty insurance business. There has been a lack of disasters—so little in terms of payouts—while many items in an insurer's investment portfolio (like stocks and some bonds) have surged in value.
This has kept many bullish on the sector, and especially so when compared to the shaky health insurance space. In fact, the property casualty insurance industry currently has a Rank in the top 5% according to our models, suggesting a pretty widespread bullish case for the segment.
In particular though, one company could be a solid pick in this segment, Cincinnati Financial (Nasdaq:CINF-Free Report). This company just delivered a strong earnings beat, and could be well-positioned to gain further in the months ahead.
Cincinnati Financial operates in several segments including commercial, personal, and life insurance giving it a diversified mix. However, CINF is definitely focused on the commercial segment, as this accounts for the bulk of its revenues.
The company has seen strong growth in its earned premiums when compared to 2012, while payouts have stayed pretty stable despite having more policies on the books. This has led to decent sized gains for CINF when compared to the year ago period in terms of earnings, and it has been further compounded by strength in the company's investment portfolio as well.
Thanks to this strong trend, analysts have started to bump up their expectations for the company's future earnings. Now, the yearly earnings estimate is up to $2.65/share from $2.22/share 90 days ago, while we have also seen positive moves in other time periods as well.
It has been a time of change for the retail industry as many companies have seen either great trading as of late, or extremely sluggish reports and lowered guidance. Coach (NYSE:COH-Free Report), a seller of accessories, definitely falls into the latter category after its latest earnings report.
Although the company has been doing quite well from a long term perspective, it has been far shakier as of late, as many are starting to worry that the firm is being left in the dust by some of its competitors. Thanks to this perception, the stock has been quite volatile for much of 2013, though it has skewed lower lately.
This trend could continue based on the latest earnings, as though COH managed to meet estimates, there were several key items in the report that were concerning. In particular though, it was some sluggishness from the all-important North American market that was the most depressing for COH.
In this segment, sales fell 1% to $778 million, pushing comparable same store sales down 6.8%. Shipments also fell, while department store sales compared to the year-ago period also slumped, suggesting broad bearishness.
It wasn't all bad news as the company did see a strong performance out of its international segment, and in particular Chinese sales. This segment soared by 35% with a double-digit move higher in comparable store sales figures.
So while Coach has made some good progress in the international segment, it has seemingly come at the expense of its top market, the U.S. consumer. Without this business, Coach will be in deep trouble, and with declining margins on top of this story, it is easy to see why many are growing concerned about COH.
Additional content:
Magellan Midstream Hikes Distribution
Pipeline operator Magellan Midstream Partners LP (NYSE:MMP-Free Report) raised its third-quarter 2013 cash distribution 5% sequentially and 15% year over year to 55.75 cents per unit ($2.23 per unit annualized). The new distribution is payable on Nov 14, 2013 to unitholders of record as of Nov 7, 2013.
In fact, the partnership has a long history of increasing cash distributions. This is Magellan Midstream's forty-sixth distribution hike following its initial public offering in 2001. Since then, its cash distribution has increased 325%.
Moreover, the distribution hike reflects the partnership's continued strong performance, backed by strong operating results, good investments and a diligent execution of its strategic plan.
Tulsa, OK-based Magellan Midstream is a master limited partnership (MLP) that owns and operates a diversified portfolio of energy infrastructure assets. The partnership primarily transports, stores, and distributes refined petroleum products and, to a lesser extent, ammonia. Magellan Midstream conducts its operations in three segments: Refined Products, Crude Oil and Marine Storage.
The partnership is slated to report its third-quarter 2013 earnings on Oct 31, 2013, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 58 cents per share.
Magellan Midstream currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at oil and gas production pipeline MLPs like Pioneer Southwest Energy Partners LP (NYSE:PSE-Free Report) and Energy Transfer Partners LP (NYSE:ETP-Free Report) that offer better prospects. While Pioneer Southwest Energy sports a Zacks Rank #1 (Strong Buy), Energy Transfer Partners retains a Zacks Rank #2 (Buy).
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.
About Zacks
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.
Get the full Report on CINF - FREE
Get the full Report on COH - FREE
Get the full Report on MMP - FREE
Get the full Report on PSE - FREE
Get the full Report on ETP - FREE
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
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.
Share this article