CHICAGO, Feb. 25, 2013 /PRNewswire/ -- Zacks Equity Research highlights Take-Two Interactive (Nasdaq: TTWO) as the Bull of the Day and OM Group (NYSE: OMG) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on United Parcel Service, Inc. (NYSE: UPS), Merck & Co. Inc. (NYSE: MRK) and FedEx Corporation (NYSE: FDX).
Take-Two Interactive (Nasdaq: TTWO) has strung together two consecutive beats and is a Zacks Rank #1 (Strong Buy).
Take Two Interactive makes games for numerous devices including PlayStation 3 and PlayStation 2, Xbox 360, and Wii. It's games can also be played on handheld gaming systems such as DS, 3DS, and PlayStation Portable. As well as the Grand Theft Auto franchise the company makes several sports and role playing games. Take-Two Interactive was founded in 1993 and is headquartered in New York, New York.
Dating back to the September 2011 quarter, TTWO has done a fair job of reporting earnings ahead of the Zacks Consensus Estimate. The four beats averaged 30% ahead of expectations and only one resulted in a lower stock price in the session following the earnings release.
The December 2012 quarter was the most recent report and delivered solid results on the top and bottom lines. Sales of $416M were 13% ahead of the Zacks Consensus Estimate. Earnings came in at $0.59, $0.09 better than the Zacks Consensus Estimate for an 18% positive earnings surprise. The stock moved higher by more than 15% in the session following the release
OM Group (NYSE: OMG) is coming off a large negative earnings surprise and is a Zacks Rank #5 (Strong Sell).
OM Group operates as a diversified specialty chemicals and materials company. The company operates in four segments: Magnetic Technologies, Advanced Materials, Specialty Chemicals, and Battery Technologies. Founded in 1991, the company is headquartered in Cleveland, Ohio.
The most recent quarter saw the company miss the Zacks Consensus Estimate by a large amount. The company reported a loss of $0.13 per share while the consensus estimate was calling for earnings of $0.03. That translates to a $0.16 miss or 533% below expectations. The stock fell 5% in the session following the release.
Over the last three quarters, OMG has missed the Zacks Consensus Estimate be an increasing amount. The June 2012 quarter was a miss of one cent, but that was followed by a $0.14 miss in September (36%) and the huge miss discussed above. This might make investors say "OMG" but not in a good way.
United Parcel Service, Inc. (NYSE: UPS) announced the expansion of UPS Worldwide Expedited service to cover more than 220 countries. UPS Worldwide Expedited includes air service for international shipments and provides delivery within two-to-five working days. This would facilitate UPS' customers with cost effective freight solutions across continents.
Given the slackness in the economy, the company foresees continued yield pressure due to the changing business mix, resulting from customer shift from premium products to cost effective logistics solutions. As a result, we see the expansion of UPS Worldwide Expedited as a strategic move to gain from the current market trends. This is a more economical solution compared to other international services such as Worldwide Express. Moreover, the expansion of these services on a global platform adds opportunities for revenue generation even in a volatile market such as UPS' home turf.
Health care business is another key market that UPS is keen on investing in. UPS is set to tap opportunities in this rapidly expanding market by establishing various distribution facilities specially dedicated to health care in key markets like Singapore, the Netherlands, Canada, Latin America, Australia and the U.S.
The company sees other opportunities in emerging markets like China, India, Japan and Brazil. As a result, United Parcel Service extended its 8-year long partnership in 2011 with pharma company Merck & Co. Inc. (NYSE: MRK) to expand its distribution and logistics services to certain Asian and Latin American markets. In 2012, the company acquired Italian pharma logistics provider Pieffe Group to enhance its health care distribution networks in North and South America, Europe and Asia.
However, we remain concerned about volatile economic conditions that continue to restrict market demand. Further, the company is also exposed to unionized workforce and intense competition from giants like FedEx Corporation (NYSE: FDX).
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.
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