Vipshop Holdings, PriceSmart, Canadian Solar, Fortegra Financial and Star Bulk Carriers highlighted as Zacks Bull and Bear of the Day
CHICAGO, Sept. 3, 2014 /PRNewswire/ -- Zacks Equity Research highlights Vipshop Holdings Ltd. (NYSE:VIPS-Free Report) as the Bull of the Day and PriceSmart (Nasdaq:PSMT-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onCanadian Solar Inc. (Nasdaq:CSIQ-Free Report), Fortegra Financial Corp. (NYSE:FRF-Free Report) and Star Bulk Carriers Corp. (Nasdaq:SBLK-Free Report).
Here is a synopsis of all five stocks:
Vipshop Holdings Ltd. (NYSE:VIPS-Free Report) is a leading online discount retailer for high-quality brand name products in China, utilizing the online "flash sales" method where special pricing may only be available for a few days.
Offering a wide selection of various famous branded discount products including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products through its website, the $9 billion company describes its unique approach thus...
"As compared to conventional on-line marketplaces or large-scale multi-category online retailers, Vipshop has successfully created and proven there is a third e-commerce model that can provide tremendous scale and profitability. By providing special offers and deep discounts on branded products, the Company has pioneered the online discount retail model in China and become the expert and leader trusted by our customers and brand partners alike."
I last wrote about VIPS as Bull of the Day in early April when it was trading in the $150s. After solidifying a base above $125, as it survived the spring drubbing for growth stocks, it went on to hit a new high near $230 in August.
Here are some of the highlights of that report as I introduced this powerful growth stock to many US investors who were just becoming familiar with another giant of Chinese e-commerce as the much-anticipated Alibaba IPO approaches...
PriceSmart (Nasdaq:PSMT-Free Report) shares started their fall from grace early this year after an earnings miss in January for their fiscal first quarter. Since then, the stock has often been showing up as a Zacks #4 Rank (Sell) or #5 Rank (Strong Sell) and its price has dropped from $115 to under $80 in July.
My colleague Tracey Ryniec wrote about the $2.7 billion company's fiscal third quarter report in July where sales trends seemed to disappoint analysts further. That earnings report may also have brought some capitulation in terms of tired longs who wanted out of the stock, while fresh buyers appeared to have come in demanding shares in the $80s.
Here's how Tracey described the company...
PriceSmart is considered to be the "Costco of Latin America" as it operates similar membership based warehouse clubs. Headquartered in San Diego, the company now dominates the Latin American market with 33 clubs in 12 countries and one U.S. territory. Costa Rica is its largest market with 6 clubs. It has recently been expanding in Colombia, where it now has 3 clubs.
PriceSmart looks like one of those growth stories where the stock got ahead of expectations, and reality.
Additional content:
3 Best-Performing Stocks in August
I ran a screen on Research Wizard for companies with the following parameters:
(Click here to sign up for a free trial to the Research Wizard today):
- Percentage price change over the last 4 weeks greater than or equal to 20%
- Forward price-to-earnings Ratio (P/E) for the current financial year (F1) less than or equal to 20. This picks out stocks that are good value choices
- Expected earnings growth for the current financial year greater than or equal to 20%
- Zacks Rank less than or equal to 2: This ascertains stocks that have shown above-average returns over the last 26 years.
(See the performance of Zacks' portfolios and strategies here: About Zacks Performance).
Here are the top 3 stocks among the 11 that made it through this screen:
Canadian Solar Inc. (Nasdaq:CSIQ-Free Report) is a vertically-integrated manufacturer of silicon ingots, wafers, cells, solar modules (panels) and custom-designed solar power applications. The company designs, manufactures and delivers solar products and solar system solutions for both on-grid and off-grid use to customers worldwide.
Percentage price gain over the last 4 weeks = 42%
Canadian Solar has significant expected earnings growth for FY2014 and holds a Zacks Rank #1 (Strong Buy). The stock's forward price-to-earnings ratio (P/E) for the current financial year (F1) is 9.11.
Fortegra Financial Corp. (NYSE:FRF-Free Report) provides distribution and administration services and insurance-related products to insurance companies, insurance brokers and agents and other financial services companies in the US.
Percentage price change over the last 4 weeks = 41.6%
Expected earnings growth for FY2014 = 29.8%
Currently, the company holds a Zacks Rank #2 (Buy) and has a P/E (F1) of 13.34.
Star Bulk Carriers Corp. (Nasdaq:SBLK-Free Report) is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk's vessels transport major bulks, which include iron ore, coal and grain and minor bulks such as bauxite, fertilizers and steel products.
Percentage price change over the last 4 weeks = 31.5%
Expected earnings growth for FY2014 = 31%
Apart from a Zacks Rank #1 (Strong Buy), Star Bulk Carriers has a P/E (F1) of 18.53.
Domestic Positives Outweigh International Headwinds
All three benchmarks have ended the month on a positive note. Clearly, domestic strength has shrugged off economic weaknesses. The only gnawing feeling in the minds of investors is the timing of a Fed rate hike. The Fed Chair remains elusive about its timing and markets seem to be ignoring this concern for now.
However, international tensions continue to linger. Conflicts across the globe have already started affecting other nations like the UK. Despite these factors, stocks seem to be on a high as of now. If economic reports and other domestic factors remain positive this month as well, stocks may well enjoy strong growth in the days ahead.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
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 analyst 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. Click here to 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 VIPS - FREE
Get the full Report on PSMT - FREE
Get the full Report on CSIQ - FREE
Get the full Report on FRF - FREE
Get the full Report on SBLK - 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
[email protected]
http://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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