The Zacks Analyst Blog Highlights:Burger King Worldwide, Boston Scientific, St. Jude Medical, Medtronic and NuVasive
CHICAGO, Dec. 30, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Burger King Worldwide, Inc. (NYSE:BKW-Free Report), Boston Scientific Corporation (NYSE:BSX-Free Report), St. Jude Medical Inc. (NYSE:STJ-Free Report), Medtronic Inc. (NYSE:MDT-Free Report) and NuVasive, Inc. (Nasdaq:NUVA-Free Report).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
Burger King Stays at Outperform
We maintain our Outperform recommendation on Burger King Worldwide, Inc. (NYSE:BKW-Free Report), as the restaurateur is witnessing strong momentum. Its international expansion plans, rising margins, initiatives to boost sales and strong third quarter results encourage us.
Why the Reiteration?
Burger King, the world's second largest fast food hamburger restaurant chain is well positioned to sustain growth in existing and new markets through product introductions, prototype design upgrades, and longer restaurant hours.
Moreover, the company remains committed to accelerate international expansion in high-growth potential markets mainly through franchising. We believe franchising a large chunk of its system facilitates earnings and return on equity growth owing to lower capital requirements. The company's franchised business model allows it to generate strong free cash flow, thereby helping it to maintain a healthy balance sheet. Moreover, international expansion through franchising helps in increasing brand recognition.
Meanwhile, Burger King's "four-pillar" strategy, which includes restaurant re-imaging, menu improvement, marketing initiatives and improving operational efficiency allows it to focus on key areas of operation and stay competitive in the saturated U.S. restaurant industry while boosting sales.
While most of the restaurant chains are grappling with margin pressure owing to cost inflation as well as excessive focus on value-driven offerings, Burger King's performance on the margin front is worth mentioning. The company witnessed a consistent rise in margins in all the three quarters of the year thanks to its disciplined cost management.
Driven by these factors, the company posted strong third quarter results with earnings beating the Zack Consensus Estimate by 9.5% and revenues by 3.4%. Estimates for 2013 and 2014 largely moved upwards over the past 60 days, reflecting the strong results. The Zacks Consensus Estimate for 2014 increased 1.08% to 94 cents over the same period.
Also, the practice of increasing dividend affirms the company's optimistic outlook and growth prospects.
The company presently has a Zacks Rank #2 (Buy).
Boston Scientific Expanding in China
A media report indicated that Boston Scientific Corporation (NYSE:BSX-Free Report) has made plans to increase its presence in China. The decision to expand its footprints in one of the most emerging markets aims to offset the negative impact of slow medical device sales in the U.S.
Boston Scientific had entered the Chinese market in 1997. Thereafter, the company has continuously strived to consolidate its position in the emerging markets of Brazil, Russia, India and China (BRIC) that recorded over 29% growth on a combined basis in the recently completed quarter.
BSX' plans for expansion in the Chinese market are justified. Recent estimates show that the annual Cardiovascular Disease (CVD) events in China are expected to increase by more than 50% between 2010 and 2030. This translates into the potential for 39 million Coronary Artery Disease (CAD) events and 130 million strokes (total 169 million). It has also been observed that more than 230 million Chinese people have some form of CVD, resulting in 3 million deaths.
Foreseeing the potential, the company has been taking several initiatives to capture a significant portion of the Chinese medical device market. Boston Scientific plans to expand its 400-strong sales and marketing employee base in China by 24% in the next year. It will also customize products with focus on the Chinese market. BSX has devised a three-tier plan to compete against rivals, comprising better after-sales service, doctors' training and continued innovation.
Accordingly, Boston Scientific plans to open new doctor-education centers across the country, adding to its newly opened multimillion-dollar innovation center in Shanghai. This will help gain faster and effective patient access as doctors are believed to have a strong hold in the Chinese market.
Recently, a Shanghai branch of the Boston Scientific Institute for Advancing Science (IAS) was opened to train medical professionals in China and in other Asia-Pacific countries. The training exclusively will be focused in areas like interventional cardiology, cardiac rhythm, electrophysiology, endoscopy peripheral interventions, urology and women's health.
Competition in the Chinese Medical device market is likely to increase further from the current level. Boston Scientific's competitors have also adopted business initiatives in the country.
St. Jude Medical Inc.
-
) has unveiled its Advanced Technology Center Asia Pacific in Beijing, while
Medtronic Inc
-
) has opened a new regional headquarters in Shanghai, China.
Boston Scientific might face major access hurdles and bureaucratic barriers in the country going forward. However, the company expects its positive initiatives will increase sales by 30% in China over the next five years.
Besides these initiatives, the company is also planning to tread the inorganic route to further expand its operation and offer lower-priced devices to its customers.
Currently, Boston Scientific Corporation carries a Zacks Rank #3 (Hold). A better-ranked stock in the same sector is NuVasive, Inc. (Nasdaq:NUVA-Free Report), carrying a Zacks Rank #1 (Strong Buy).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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 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. 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 BKW - FREE
Get the full Report on BSX - FREE
Get the full Report on STJ - FREE
Get the full Report on MDT - FREE
Get the full Report on NUVA - 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
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