The Zacks Analyst Blog Highlights:Netflix, Apple, Mondelez International, PepsiCo and Coca-Cola

News provided by

Jan 23, 2014, 09:30 ET

CHICAGO, Jan. 23, 2014 /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 Netflix (Nasdaq:NFLX-Free Report), Apple (Nasdaq:AAPL-Free Report), Mondelez International, Inc. (Nasdaq:MDLZ-Free Report), PepsiCo, Inc. (NYSE:PEP-Free Report) and Coca-Cola Company (NYSE:KO-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 Wednesday's Analyst Blog:

Netflix Blows Away Estimates Again

That company that used to mail you a red envelope with a new DVD every week? Yeah, those guys: Netflix (Nasdaq:NFLX-Free Report). They now have 44 million subscribers and brought in $1.175 billion in their Q4 of 2013. Earnings per share (EPS) reached 79 cents. Both of these beat what the market was expecting, especially on the earnings side, which was a 21.5% positive surprise.

What's more, Netflix raised guidance for fiscal 2014, expecting bigger numbers in streaming subscribers for both the U.S. and International businesses than analysts had been expecting. The company's Q1 guidance is in range with the Zacks Consensus Estimates, allowing for another positive surprise next quarter.

Almost feels like a vintage Apple (Nasdaq:AAPL-Free Report) quarterly earnings post, doesn't it?

Going back to a year ago when Netflix put up a 208% positive surprise, NFLX shares have been off to the races. And now, just as there seems to have been some trepidation in the market whether Netflix can keep scaling these impressive heights, they go ahead and have another gangbusters quarter and increase the amount of subscribers they expect going forward. Further, though net neutrality is now to perhaps be a concern for companies like Netflix, CEO Reed Hastings addressed this directly and suggested it will not be an issue for Netflix.

So while we had seen NFLX shares down around 9% for the first three weeks of 2014, regular Wednesday trading saw the stock price rise another 1.5% before a new surge in the after-session: up 16% since the bell on the latest blowout earnings numbers. Netflix is at heart an entertainment company, but these days it looks more like the star of the show.

Peltz Joins Board at Mondelez

Global snack company,Mondelez International, Inc. (Nasdaq:MDLZ-Free Report) recently announced that activist investor, Nelson Peltz, has joined its board of directors. Media reports say that Peltz will not pursue his agenda of merging Mondelez with food and beverage giant, PepsiCo, Inc. (NYSE:PEP-Free Report).

Last year, Peltz had pushed Pepsi to take over Mondelez and then spin-off its underperforming beverage business. Peltz's investment company, Trian Fund Management, holds major stakes in both the food companies. Peltz believed that shifting consumer preferences toward health and wellness and "good-for-you" products is lowering the demand for high-calorie soft drinks. Thus, beverage giants like Pepsi and The Coca-Cola Company (NYSE:KO-Free Report) are witnessing declining sales of carbonated beverages, especially the colas. Peltz felt Pepsi's underperforming beverage business is overshadowing its fast growing snack unit.

Peltz had also urged Pepsi to divest the Frito Lay unit in case it does not want to go ahead with the Mondelez merger.

However, earlier this month, in an interview to CNBC, Pepsi's chief executive officer, Indra Nooyi, said there is no need to split the beverage and snacks businesses. Nooyi insisted that the businesses are complementary and "better together", not just in the United States but worldwide.

Peltz's addition to the Mondelez board would expand it to 12 members, 11 of whom are independent. Mr. Peltz will also be nominated for board elections at this year's annual meeting.

Mondelez was previously known as Kraft Foods, Inc. and changed its name to Mondelez following the spin-off of its North American grocery business into a separate independent company in Oct 2012. Ever since the split, the Cadbury chocolates and Trident gum maker has been struggling with its top line.

Currently, Mondelez has a Zacks Rank #2 (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 NFLX - FREE

Get the full Report on AAPL - FREE

Get the full Report on MDLZ - FREE

Get the full Report on PEP - FREE

Get the full Report on KO - FREE

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
[email protected]
http://www.zacks.com

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.