Exterran Holdings, Bank of America, MorganStanley, Facebook and Yelp highlighted as Zacks Bull and Bear of the Day
CHICAGO, May 8, 2014 /PRNewswire/ -- Zacks Equity Research highlights Exterran Holdings (NYSE:EXH-Free Report) as the Bull of the Day and Bank of America (NYSE:BAC-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onMorgan Stanley (NYSE:MS-Free Report), Facebook, Inc. (Nasdaq:FB-Free Report) and Yelp, Inc. (NYSE:YELP-Free Report).
Here is a synopsis of all five stocks:
E very day I scan the market looking for great opportunities to buy fantastic companies and precisely the right time. I look for stocks that are Zacks Rank #1 (Strong Buy) with recent earnings revisions to the upside, a recent quarterly earnings surprise, and relative strength to the market. Anyone can run this screen and uncover some solid stock ideas. I love running the screen daily because it helps me uncover trends in the market that would usually go unnoticed. Based on the sectors of the stocks that keep popping up on a daily basis I get a good pulse for which parts of the market are hot. What's been popping up a lot for me lately has been the energy space. Oil and Nat Gas are looking very good right now.
Looking even better is today's Bull of the Day, Exterran Holdings (NYSE:EXH-Free Report). Exterran is the global leader in full service natural gas compression. Think about the big energy boom we're having in the US. At the forefront is the debate of whether or not we'll allow the exportation of Nat Gas as we're getting it for about a quarter of what they pay in Asia and half what they do in Europe. Compressing the Nat Gas would allow for easier transportation not just domestically but also potentially internationally.
EXH just reported earnings yesterday so we've got some fresh news to be excited about. Earnings came in at 18 cents per share for the quarter versus expectations for 14 cents. This marked the 9th time EXH has surprised to the upside in the last 10 quarters. Like most stocks, this one loves an earnings beat. The consistent positive revisions also have helped guide EXH on a steady upward trajectory.
Here we are a world away from the economic hardships and panic of the Great Recession. Since then, we've had a market rally to all-time highs and suddenly it feels like we are back on track. Now the last few days have given some cause for concern amongst investors. The NASDAQ 100 has led the way down and the Russell 2000 is seeing its share of red arrows as well. But you could view this year so far as a decent year for most stocks.
Falling to the bottom 28% of our Zacks Industry Rank is the Major Regional Banks. These institutions are struggling to find ways to increase profits without taking on additional risk that hurt them so much during the downturn. These banks have been hampered by tightened credit, a depressed housing market, and low spreads on deposits. Near the bottom of this industry in terms of our Zacks Rank is our Bear of the Day, Bank of America (NYSE:BAC-Free Report).
This Zacks Rank #5 (Strong Sell) stock has seen a whopping 12 analysts bring down earnings estimates for the current quarter and next year over the last 30 days. This has pushed the consensus down from $1.35 to 96 cents for this year. Percentage-wise you're looking at a 28% plus down side revision. Not the kind of numbers you want to see from your stock. Couple that with the fact that BAC is only paying a 4 cent dividend giving you a paltry yield of 0.27% and this isn't the most attractive stock in the space.
Additional content:
Morgan Stanley Fined Over Faulty IPO Practices
Morgan Stanley's (NYSE:MS-Free Report) wealth management division – Morgan Stanley Smith Barney LLC – has been fined $5 million by the Financial Industry Regulatory Authority (FINRA) due to its improper initial public offerings (IPOs) practices. Following this negative development and broader market decline, the company's shares fell more than 2% in the intra-day trading on Tuesday and closed at $29.46.
The FINRA alleged that Morgan Stanley failed to supervise the sale of shares to retail customers during 83 IPOs, including those of Facebook, Inc. (Nasdaq:FB-Free Report) and Yelp, Inc. (NYSE:YELP-Free Report). The company neither followed proper procedure nor did it train its sales staff to distinguish between 'indications of interest' and 'conditional offers to buy' while soliciting potential investors.
An 'indications of interest' will lead to purchase of shares only if it is re-confirmed by the investors after the effectiveness of registration statement. On the other hand, 'conditional offers to buy' becomes a compulsory deal in case the investors do not rescind the conditional offer after the registration statement is effective.
Notably, the sales staff at Morgan Stanley often used both these terms interchangeably.
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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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