Back to top

Press Releases

Zacks Bull and Bear of the Day Highlights: Macy's, Tower Group, Harman International Industries, Panasonic and Sony

M TWGP HAR SNE

 ZacksTrade Now

For Immediate Release

Chicago, IL – November 14, 2011 – Zacks Equity Research highlights Macy's, Inc. ( (M - Analyst Report) as the Bull of the Day and Tower Group, Inc.'s (TWGP - Analyst Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Harman International Industries Inc. ( (HAR - Snapshot Report), Panasonic Corp. ( and Sony Corp. ( (SNE - Snapshot Report).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.

Here is a synopsis of all five stocks:

Bull of the Day:

Macy's, Inc. ( (M - Analyst Report) has been taking prudent steps to increase sales, profitability and cash flows, which include integration of operations, consolidation of divisions and customer-centric localization initiatives. To help drive traffic, Macy s continues to focus on price optimization, inventory management and merchandise planning.

These help the company to deliver better-than-expected third-quarter 2011 results. The quarterly earnings of $0.32 per share beat the Zacks Consensus Estimate of $0.16, and portrayed a fourfold increase from $0.08 earned in the prior-year quarter.

Following this, management raised its outlook. Macy's now expects fiscal 2011 earnings between $2.70 and $2.75 per share. The company hinted that it is also seeking to expand both the Macy's and Bloomingdale's brands.

Bear of the Day:

Tower Group, Inc.'s (TWGP - Analyst Report) third quarter 2011 operating loss came in substantially worse than the Zacks Consensus Estimate of a loss of $0.17, led by a huge catastrophe charge, but partly mitigated by higher revenues and a lower share count due to share buybacks. Low insurance rates in commercial property and homeowners lines of business will restrict overall premium growth going forward.

Also, a low interest rate environment will keep a lid on investment earnings. The quantitative Zacks Rank for Tower Group is currently #4, indicating a downward directional pressure on the shares over the near term.

Our six-month target price of $20.00 equates to about 13.6x our earnings estimate for 2011. We view the $0.75 per share annual dividend as secure, implying a total negative return of about 8.0% over that period, which is consistent with our Underperform recommendation on the shares.

Latest Posts on the Zacks Analyst Blog:

Harman Strengthens Chinese Presence

Harman International Industries Inc. ( (HAR - Snapshot Report) has opened a new manufacturing facility in the Dandong region in China. The launch of the new facility highlights the company’s additional $100 million investment plan to strengthen manufacturing and research capabilities in China. Two facilities will be accommodated in the 460,000-square foot space that is being developed.

The new unit will be used for the development of electronic components and audio systems for Harman’s automotive customers in both western and Asian countries.

Harman’s decision to increase investment in China makes sense since a large chunk of global auto production has now shifted to the country. Further, demand for audio systems from the Chinese automakers is also on the rise. Premium automakers, such as Geely Motors, BYD and Dongfeng Passenger Vehicle are already using Harman’s superior sound systems. 

In China, apart from the Dandong region, Harman has manufacturing facilities and R&D centers in the cities of Shanghai, Suzhou and Shenzhen. China is also seeing rapid increase in infrastructure projects such as airports and rail stations, hotels, cinemas, entertainment and sporting complexes, performing arts centers, and mega-projects such as the upcoming Shanghai Disney theme park. Harman is playing a major role in these development activities with its premium audio systems for the professional and consumer sectors.

Given increasing adoption rates in the emerging markets of Brazil, Russia, India and China, Harman expects to outperform the overall automotive sector going forward. Harman is doubling its manufacturing capacity in Hungary, China and Mexico, which will help the company address the growing demand for Automotive and Professional products.

Harman boasts a solid product pipeline that is supported by more than 3500 patents, and the company intends to roll out new infotainment products in order to further drive sales.

In the recently concluded quarter, Harman’s results were stellar, driven by double-digit revenue growth in the Infotainment and Lifestyle divisions. The company expects to deliver impressive margins for the next two years on the back of robust demand for the infotainment business.

However, Harman continues to face tough competition from Bose Corp., Boston Acoustics Inc., Pioneer Corp., Yamaha Corp., Rockford Corp., Panasonic Corp. ( and Sony Corp. ( (SNE - Snapshot Report), which may hurt its profitability going forward.

We maintain our Neutral recommendation on a long-term basis (6-12 months). Currently, Harman has a Zacks #1 Rank, which implies a 'Strong Buy' rating on a short-term basis (1-3 months).

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

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. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7158.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 at http://at.zacks.com/?id=4582.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com

http://www.zacks.com

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

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
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%