The Zacks Analyst Blog Highlights:Whole Foods Market, United Technologies, SolarCity, Carlisle and ITT
CHICAGO, May 8, 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 Whole Foods Market (Nasdaq:WFM-Free Report), United Technologies Corp. (NYSE:UTX-Free Report), SolarCity (Nasdaq:SCTY-Free Report), Carlisle Companies Inc. (NYSE:CSL-Free Report) and ITT Corp. (NYSE:ITT-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Whole Foods Down 19% - Time to Panic?
Wednesday was one of the worst sessions in years for the stock of popular supermarket chain Whole Foods Market (Nasdaq:WFM-Free Report) as shares cratered by nearly 19% on the day. This crash came after the company reported weak earnings of 38 cents a share after the bell on Tuesday, missing the Zacks Consensus Estimate of 41 cents a share.
Key Factors
While the earnings miss was obviously a disappointment, investors also keyed in on some troubling statistics in terms of the company's same store sales and its margins. Same store sales rose just 4.5% for the quarter, while gross margins slumped by 51 basis points thanks to a higher cost of goods sold.
If that wasn't enough, Whole Foods management also reduced their guidance yet again for the company's full year outlook. Now, WFM looks to have sales growth of between 10.5%-11% (down from 11%-12% range) while same store sales growth looks to be in the 5%-5.5% neighborhood, down from a previous forecast of 5.5%-6.2% growth.
These reduced outlooks on the sales front are also trickling down into the earnings guidance for the company, as now this has been reduced as well. And though WFM currently has a Zacks Rank #3 (Hold), one has to expect a flurry of analyst estimate revisions lower in the coming days, suggesting that 'sell' territory is pretty likely for this Texas-based company in short order.
What Happened?
Whole Foods Market is an interesting case because it has long held a dominant position in the organic and natural foods market. It saw great growth for years based on its impressive spot in the industry, but many other companies are starting to get in on the game too.
Carrier, SolarCity JV to Improve Home Energy
Carrier, a division of United Technologies Corp. (NYSE:UTX-Free Report), recently teamed up with SolarCity (Nasdaq:SCTY-Free Report), the largest full-service solar power provider in America, to offer cost-effective innovative solutions to homeowners.
Carrier delivers global solutions across a broad range of applications in heating, air-conditioning, refrigeration and beyond and provides innovative products and services that improve global comfort and efficiency. The tie-up is expected to offer a clean, energy-efficient solution, which will further enhance the benefits of Carrier's already efficient products and optimize home energy performance.
Also, the company has been impressive with the marketing of its products. Customers who purchase new Carrier products and install SolarCity solar panels will receive a $1,000 rebate to help power their home and improve the home energy performance. SolarCity solar systems will power Carrier systems with clean, solar power, delivering even more control and helping homeowners cut down on their energy bills.
Carrier produces heating, ventilation and air conditioning (HVAC) and refrigeration-related controls for residential, commercial, industrial and transportation applications. Carrier also provides installation, retrofit and aftermarket services and components for the products that it sells and for other manufacturers in the HVAC and refrigeration industries.
United Technologies, the parent company of Carrier, provides high-end technology products and services to the building systems and aerospace industries worldwide.
United Technologies currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include Carlisle Companies Inc. (NYSE:CSL-Free Report) and ITT Corp. (NYSE:ITT-Free Report), both carrying 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 WFM - FREE
Get the full Report on UTX - FREE
Get the full Report on SCTY - FREE
Get the full Report on CSL - FREE
Get the full Report on ITT - 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.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
Share this article