Rite Aid, American Capital, Bayer, Compugen and Seattle Genetics highlighted as Zacks Bull and Bear of the Day
CHICAGO, Oct. 16, 2013 /PRNewswire/ -- Zacks Equity Research highlights Rite Aid Corporation (NYSE:RAD-Free Report) as the Bull of the Day and American Capital (Nasdaq:ACAS-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis ontheBayer (OTC:BAYRY-Free Report), Compugen Ltd. (Nasdaq:CGEN-Free Report) and Seattle Genetics Inc. (Nasdaq:SGEN-Free Report).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Here is a synopsis of all five stocks:
Rite Aid reported excellent quarterly results buoyed by strong sales growth and expanding margins. Earnings estimates have thus surged, sending this drugstore chain to Zacks rank #1 (Strong Buy).
Rite Aid Corporation (NYSE:RAD-Free Report) is the third largest retail drugstore in the U.S., based on revenues and number of stores. More than 25% of the U.S. population visits RAD's 4,604 stores at least once a year. The company s pharmacy operations accounted for 67.6% of fiscal 2013 total sales.
The company reported its operating results for its fiscal second quarter ended August 31 on September 20, 2013. Revenues for the quarter increased 0.8% primarily as a result of an increase in same store sales, partially offset by store closings.
Net income for the quarter was $32.8 million or compared with a net loss of $38.8 million during the same quarter last year. The improvement in net income was primarily a result of an increase in adjusted EBITDA and a decrease in interest expense, partially offset by the loss on debt retirement.
Estimates have come down after disappointing second quarter results, sending ACAS to a Zacks Rank # 5 (Strong Sell), with an "Underperform" recommendation.
About the Company
American Capital (Nasdaq:ACAS-Free Report) is global private finance investor and alternative asset manager. Founded in 1986, the company had $21 billion in earning assets under management as of June 30, 2013. Headquartered in Bethesda, Maryland, ACAS has 8 offices and 367 employees in the U.S. and Europe. The company has been able to grow its earnings AUM significantly, thanks mainly to two of its public funds, American Capital Agency and American Capital Mortgage (both mortgage REITs).
American Capital reported its second quarter operating results on July 31, 2013. Net operating income for the quarter was $0.16 per share, substantially worse than the Zacks Consensus Estimate of $0.25 per share. This was the company's second consecutive miss. ACAS has delivered an average negative surprise of 21.6% in the last four quarters.
Total operating revenue for the quarter was $130 million, down 20% from $163 million in the prior-year quarter, due to lower interest and dividend income. Further, operating revenue was below the Zacks Consensus Estimate of $139 million.
Additional content:
Bayer in Oncology Deals
Bayer's (OTC:BAYRY-Free Report) HealthCare segment was very active in the last few quarters on acquisitions and collaborations. The company has entered into several agreements to boost its product portfolio.
Earlier in the month, Bayer entered into a master collaboration agreement with Sysmex Inostics GmbH, a diagnostic company, for the development of companion diagnostics for targeted cancer therapies. As per the agreement, Sysmex Inostics' innovative blood-based companion diagnostic solutions will be used to develop Bayer's anti-cancer agents. Bayer however did not mention any financial details pertaining to the agreement.
In Aug 2013, Bayer entered into another oncology collaboration and licence agreement with Compugen Ltd. (Nasdaq:CGEN-Free Report) for an upfront payment of $10 million. The collaboration agreement is for the research, development, and commercialization of antibody-based therapeutics for cancer immunotherapy against two novel immune checkpoint regulators discovered by Compugen.
Per the terms of the agreement, Bayer will gain full development and worldwide commercialization rights to the potential cancer therapeutics, after jointly conducting a preclinical research program with Compugen.
Moreover, in Jun 2013, the company inked a collaboration agreement with Seattle Genetics Inc. (Nasdaq:SGEN-Free Report) that allowed the former to gain worldwide rights to Seattle Genetics' auristatin-based antibody-drug conjugate (ADC) technology along with antibodies to several oncology targets. As per the terms of deal, Bayer will be responsible for the development, manufacturing and commercialization of all products under the agreement.
We are encouraged by the company's collaboration agreements. The collaborations are expected to strengthen Bayer's oncology portfolio.
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 RAD - FREE
Get the full Report on ACAS - FREE
Get the full Report on BAYRY - FREE
Get the full Report on CGEN - FREE
Get the full Report on SGEN - 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
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