Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

NCR Corp. (NCR - Analyst Report) recently announced the opening of self-service BLOCKBUSTER-Express DVD Kiosks in more than 800 grocery stores operating under the Delhaize Group (DEG - Snapshot Report). The kiosks will be installed at stores in 11 states in the Southeast and Mid-Atlantic.

Delhaize Group is a Belgian international food retailer operating in North America, Europe and Southeast Asia. The DVD kiosks will be placed mostly in the Food Lion stores. Some kiosks will also be placed in other stores operating under the Group like Bottom Dollar Food, Harvey’s and Reid's.

Customers visiting the stores can now rent DVDs 24x7 through credit or debit cards. They don’t even need a membership for renting any movie from the wide choice offered at the kiosks. DVDs will be available at a rent of $1 per night and can be returned at any Blockbuster Express kiosk.

Apart from the above-mentioned stores, NCR Corp. also has Blockbuster kiosks at BI-LO, RaceTrac, QuikTrip, Kwik Trip, Xtra Mart, Sheetz, Tom Thumb, Randalls, Basha’s Family of Stores, Duane Reade and Brookshire Grocery.

Initially, NCR Corp. had a target of installing 10,000 kiosks by the end of 2011, but has now raised it by a thousand. Even then, the company trails Coinstar Inc.’s Redbox brand.

In an attempt to capture a big share of the DVD kiosk market, the company is now offering DVD-vending machines to CD, DVD and video game retailers. The marketing strategy will allow NCR Corp. to free up space in its stores, making more DVD-Kiosks accessible to customers.

We believe NCR Corp. will be able to capitalize on the growth potential in the DVD kiosk business. As per market sources, roughly 60% of people borrowing DVDs prefer to do so through self-service kiosks.

Despite the opportunity in the DVD kiosk business, we remain somewhat cautious on growing competition from online streaming. Netflix Inc. (NFLX - Analyst Report) leads this space, and the company’s growing success has resulted in a recent tie-up with Apple Inc. (AAPL - Analyst Report).

Currently, NCR Corp. has a Zacks #2 Rank, which translates into a short-term Buy recommendation.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%