Stratasys, Express, Hanesbrands, G-III Apparel Group and Tiffanyhighlighted as Zacks Bull and Bear of the Day
CHICAGO, Dec. 17, 2013 /PRNewswire/ -- Zacks Equity Research highlights Stratasys (Nasdaq:SSYS-Free Report) as the Bull of the Day and Express (NYSE:EXPR-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onthe Hanesbrands Inc. (NYSE:HBI-Free Report), G-III Apparel Group, Ltd. (Nasdaq:GIII-Free Report) and Tiffany & Co. (NYSE:TIF-Free Report).
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Here is a synopsis of all five stocks:
An industry that has been breaking into the mainstream as of late is definitely 3D Printing. This new manufacturing technique looks to jumpstart a production renaissance, and bring back industrial capabilities to small-sized firms, potentially revolutionizing a variety of businesses in the process.
This is because 3D Printing allows for customized, small scale manufacturing of prototypes or finished products in three dimensions from a digital model. The segment is still small, but with a variety of applications ranging from home produced tools and guns, to potentially 'printing' food and human organs eventually, it could have tremendous potential.
So for investors who want to get in on this volatile but very intriguing growth story early on, a look at some of the few companies trading in this spot might be a good idea. In particular, one of the industry leaders, Stratasys (Nasdaq:SSYS-Free Report), could be a very intriguing pick right now.
Stratasys, despite having a market cap below $6 billion, is easily one of the top companies focused on the 3D Printing market. The company makes 3D printers as well as the photopolymer materials that are used in the three dimensional printing process.
Although the sector saw some heavy selling following a bearish report from Citron research regarding a new competitor, SSYS has been a star performer in 2013. In fact, the stock has moved higher by nearly 45% in the YTD time frame, following up a 300% return over the past two years. And while some might be concerned about SSYS given this huge run, a look at the earnings picture suggests that this move might just be getting started.
Despite high consumer confidence levels and tumbling unemployment, it hasn't exactly been a great time to be a clothing retailer. The space has seen cutthroat competition eat into bottom lines, while changing trends have crushed several big names as well.
While this trend has hit a number of companies in the retail world as of late, it has been especially devastating for Express (NYSE:EXPR-Free Report). This company was a pretty fashionable pick earlier in the year, but thanks to a horrendous earnings report and a sluggish outlook, Express may be a company to avoid heading into 2014.
In Express' most recent earnings report, the company saw earnings of 23 cents a share compared to expected earnings of 25 cents a share. This 8% miss, coupled with a sluggish outlook for EXPR, was ill received by the market.
Guidance for the all-important holiday quarter came in at 66 cents a share-71 cents a share, far below the consensus estimate of 78 cents a share. Express also lowered its full year outlook to $1.46/share-$1.51/share from an analyst estimate of $1.61/share.
Thanks to this guidance cut, and general investor disdain for retail stocks in today's environment, EXPR crashed. In fact, the stock lost almost one-fourth of its value following the report of the slashed guidance, and shares haven't been able to make back any ground since the release.
Additional content:
3 Retail Stocks Before the Fed Starts to Taper
The market seems to have a mixed reaction at the end of last week's trading session over the Fed's decision regarding the stimulus program. The Dow Jones Industrial Average gained 15.93 points (or 0.10%) to close at 15,755.36. The Standard & Poor's 500 Index shed 0.18 points (or 0.01%) to finish the trading session at 1,775.32. The Nasdaq Composite Index rose 2.57 points (or 0.06%) to end at 4,000.98.
As of now it is very difficult to predict the outcome of the final meeting on this brainstorming issue, but for now we can focus on 3 retail stocks that look strong amid the current scenario. Here are three stocks that you can capitalize on and enrich your portfolio:
We suggest investing in Hanesbrands Inc. (NYSE:HBI-Free Report), a designer and manufacturer of basic apparel in the United States. Shares of this Zacks Rank #1 (Strong Buy) trades at a forward P/E (price-to-earnings) of 17.58x, a marginal discount of 2% to the peer group average of 17.93x, and have amassed a year-to-date return of 90.7%.This Winston-Salem, NC-based company had registered an average positive earnings surprise of 10.2% over the trailing four quarters, and has a long-term earnings expectation of 15.6% that makes it look attractive.
G-III Apparel Group, Ltd. (Nasdaq:GIII-Free Report), a manufacturer and marketer of women's and men's apparel, is another stock to bet on. This Zacks Rank #1 (Strong buy) stock has amassed a year-to-date return of 95.1% and is expected to witness earnings growth of 15.9% in fiscal 2013 and 80% in fiscal 2014. The company's long-term estimated EPS growth rate is 16.5%, higher than the peer group average of 13.8%. Shares of this New York-based company trades at a forward P/E of 18.35x, a discount of 16.9% to the peer group average of 22.07x. The company had registered an average positive earnings surprise of 96.6% over the trailing four quarters.
Another stock that investors may look forward to is Tiffany & Co. (NYSE:TIF-Free Report), the renowned jewelry maker. This Zacks Rank #2 (Buy) stock has amassed a year-to-date return of roughly 53.6%, and is expected to witness earnings growth of 10.3% in fiscal 2013 and 11.8% in fiscal 2014. Though the stock looks a bit pricey with a P/E multiple of 23.57x, it should not disappoint investors given the company's long-term expected earnings growth of 13.5%. This New York-based company had registered an average positive earnings surprise of 18.1% over the trailing four quarters.
We believe that the above stocks that boast strong fundamentals and growth prospects are capable of satisfying investors' search for market winners. As the economy awaits the Fed's decision, a sneak peek into the space for some possible outperformers backed by a favorable Zacks Rank could be handy for investors.
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