Toyota Motor, Noodles & Company, Facebook, Google and eBay highlighted as Zacks Bull and Bear of the Day
CHICAGO, March 7, 2014 /PRNewswire/ -- Zacks Equity Research highlights Toyota Motor Corporation (NYSE:TM-Free Report) as the Bull of the Day and Noodles & Company (Nasdaq:NDLS-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onFacebook (Nasdaq:FB-Free Report), Google (Nasdaq:GOOG-Free Report) and eBay (Nasdaq:EBAY-Free Report).
Here is a synopsis of all five stocks:
Toyota Motor Corporation (NYSE:TM-Free Report) has bounced back from the Great Recession and the Japanese Tsunami. This Zacks Rank #1 (Strong Buy) is expected to post double digit earnings growth in Fiscal 2014.
Toyota is one of the world's largest auto makers. It produces cars under the brands Toyota, Lexus, Scion and the popular Prius. It operates 14 manufacturing plants in North America.
On Mar 3, Toyota announced February North American car sales which fell 5.8% year over year. But the company saw an up tick in buying towards the end of the month which it thinks will set up a strong March.
Additionally, there were pockets of great news during the month.
The luxury end is still humming along. Lexus saw a 8.7% increase for the month.
"The luxury segment is off to a good start this year, showing across the board gains," said Jeff Bracken, Lexus group vice president and general manager.
"The new IS continues to be one of the hottest cars in any segment, with sales more than doubling for the fourth straight month." he added.
The SUV segment also continues to be hot. The all-new RAV4 had sales up 23% for its best February ever. Similarly, the all-new Highlander sales jumped 30%, also the best-ever February.
After a hot IPO in 2013, Noodles & Company (Nasdaq:NDLS-Free Report) is showing the growing pains of being a public company. This Zacks Rank #5 (Strong Sell) recently gave 2014 guidance which disappointed the Street.
Noodles & Company operates in the "fast-casual" restaurant sector. It operates 380 restaurants in 29 states and the District of Columbia. The fast-casual restaurants have been a hot niche of the restaurant industry.
Noodles & Company reported preliminary sales data well ahead of its Feb 26 earnings date so the comparable restaurant sales gain of 3.9% was priced in.
But it was the 2014 guidance that spooked investors and analysts.
And like a lot of companies that have exposure to the Midwest and the Northeast, it was all about the weather.
"Looking ahead to 2014, we have faced an unusual amount of severe winter weather during the first quarter to date. Nearly 80% of our restaurants are located in areas severely impacted by atypical weather, including the Mid-Atlantic, Upper Midwest and Rocky Mountain West," said Kevin Reddy, Chairman and Chief Executive Officer.
"In fact, over 30% of our operating days thus far have seen either measurable precipitation or temperatures at least twenty degrees below normal."
"As a result, in the first quarter we anticipate a roughly 300 to 350 bps negative impact to revenue and $0.03 impact to diluted earnings per share. Still, we remain confident that we can deliver on our 25% annual adjusted diluted earnings per share growth goal for 2014," he added.
Additional content:
Facebook to Delete Illegal Firearms Ads
Facebook (Nasdaq:FB-Free Report) recently agreed to delete all posts from users seeking to buy or sell weapons unlawfully or without proper background check. This stand was taken by Facebook under pressure from Moms Demand Action and Mayors Against Illegal Guns, advocacy groups that support gun control laws.
Gun control advocates have accused Facebook for having provided an illegal platform for the buying and selling of guns. They state that there is no definite record regarding the exact number of guns sold via Facebook since everything happens offline. Yet they are sure deals take place.
From now onward, Facebook will limit access to posts promoting the private sale of firearms to users over the age of 18. Posts that offer to sell weapons across state lines without employing a licensed firearms dealer will be strictly forbidden by Facebook. Also posts which call for no background checks will also be disallowed.
In this regard, Facebook seems to follow the footsteps of its competitors Google (Nasdaq:GOOG-Free Report) and eBay (Nasdaq:EBAY-Free Report), which had earlier prohibited all posts related to gun sales. However, Facebook's new initiative to prevent illegal sales of guns has already been exposed to criticism as the National Rifle Association claims it to be an infringement of the rights of gun sellers.
Facebook is also making changes on Instagram, the photo-sharing network it bought for about $700 million in 2012. If members search the application for sales or promotions related to firearms, they will receive a message reminding them to obey and respect law.
Facebook already has systems in place to remove advertising that is false and deceptive, and it prohibits ads aimed at promoting illegal drugs, tobacco and prescription drugs.
Currently, Facebook has a Zacks Rank #2 (Buy).
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