Spirit Airlines, Sturm Ruger, Google, World Energy Solutions and Baidu highlighted as Zacks Bull and Bear of the Day
CHICAGO, Nov. 11, 2014 /PRNewswire/ -- Zacks Equity Research highlights Spirit Airlines, Inc. (Nasdaq:SAVE-Free Report) as the Bull of the Day and Sturm Ruger & Company, Inc. (NYSE:RGR-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onGoogle (Nasdaq:GOOGL-Free Report), World Energy Solutions, Inc. (Nasdaq:XWES-Free Report) and Baidu Inc.(Nasdaq:BIDU-Free Report).
Here is a synopsis of all five stocks:
Spirit Airlines, Inc. (Nasdaq:SAVE-Free Report) is flying high as crude prices continue to drop. This Zacks Rank #1 (Strong Buy) just posted a record third quarter and is expected to produce double digit earnings growth both in 2014 and 2015.
Spirit is a discount airline that gained fame by unbundling its services and offering customers the option about what they want to purchase- whether that is bags, seat assignment and refreshments.
Spirit makes nearly 40% of its revenue from non-ticket product purchases.
Its all-Airbus fleet operates more than 280 daily flights in the United States, Latin America and the Caribbean.
Spirit has an excellent earnings track record, having never missed on the Zacks Consensus Estimate since its 2011 IPO, even though it has "met" three times.
On Oct 28, it didn't disappoint as it beat the Zacks Consensus yet again, reporting earnings of $1.01 versus the Zacks Consensus of $0.96.
America's gun buying binge is finally over as Sturm Ruger & Company, Inc. (NYSE:RGR-Free Report) reported a double digit decline in sales in the third quarter. This Zacks Rank #5 (Strong Sell) saw earnings decrease 76% from the third quarter of last year.
Sturm, Ruger makes more than 30 American- made product lines with over 400 variations of firearms for the commercial sporting market.
The slowdown in firearm sales appears to have caught even the analysts by surprise despite some gun retailers, like Cabela's, announcing slower sales over the summer.
On Oct 29, Sturm Ruger reported third quarter earnings of just $0.34, or $0.79 under the Zacks Consensus Estimate of $1.13. They weren't even close to what the analysts were looking for.
Revenue fell to $98.3 million from $170.9 million in the year before.
The company said the decline in demand for its products accelerated during the third quarter with sales falling 43% and estimated sell-through from independent distributors to retail declining 44% year over year.
Additional content:
Google Express Chief Goes to Uber
Car-hailing service Uber has successfully managed to get the head of Google's (Nasdaq:GOOGL-Free Report) Google Express, Tom Fallows, onboard.
Tom Fallows was the pioneer of the Google Express service. The service charges customers an annual fee of $95 for unlimited same-day deliveries from various retailers. The program has been successful, Google said in a statement to Re/code.
Fallows, who had joined Google in 2010, had reportedly managed to secure a $500 million budget for Google Express. The tech giant hasn't yet named Fallows' successor.
Uber's recruitment of Fallows could be a sign that the multibillion dollar ride-sharing service is considering the launch of a same-day delivery service in the near future.
Travis Kalanick, Uber's CEO, had asserted recently that the company is servicing a society which seeks immediate fulfillment. This could mean almost-instant delivery.
Uber, with its huge convoy of drivers and cars, had previously tested deliveries of items like ice cream, flu shots and fresh meals. In August, Uber unveiled UberESSENTIALS in parts of Washington, DC, allowing clients to order from more than 60 common items like batteries and chips.
However, there is a possibility that the two companies may work together in the future.
Google Ventures has invested around $200 million in Uber.
Recently, Google's co-founder Sergey Brin had announced plans to collaborate with other companies for its self-driving car project. This could include Uber.
Google Maps recently added a link to Uber's mobile app, which shows the user the time a Uber car would take to arrive, and also the probable drive time and fare to reach a destination.
Google currently has a Zacks Rank #4 (Sell). Better-ranked stocks in this industry include World Energy Solutions, Inc. (Nasdaq:XWES-Free Report) and Baidu Inc.(Nasdaq:BIDU-Free Report), both of which carry a Zacks Rank #2 (Buy).
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