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 firstname.lastname@example.org or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – June 5, 2012 – Zacks Equity Research highlights CBS Corporation (CBS - Analyst Report) as the Bull of the Day and Quality Systems, Inc. (QSII - Analyst Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Procter & Gamble Company (PG - Analyst Report), Kellogg Company (K - Analyst Report) and PepsiCo, Inc. (PEP - Analyst 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:
Higher content licensing and distribution revenues facilitated CBS Corporation (CBS - Analyst Report) to post better-than-ever first-quarter 2012 results. The quarterly earnings of $0.54 per share surpassed the Zacks Consensus Estimate of $0.44 and surged 86% from $0.29 earned in the year-ago quarter. Revenues jumped 12% to $3,924 million.
The quarter saw a step up in both the advertising marketplace as well as profitable content deals. Management remains confident about continued growth momentum in fiscal 2012. However, the significant potential risk is CBS's high dependence on advertising revenue, which is driven by the health of the economy. To mitigate this, the company is striving to add diverse revenue streams to hedge against economic cycles, which include retransmission fees, syndication sales and streaming deals.
CBS' substantial liquidity positions it to drive future growth and enhance shareholders return. Currently, we maintain our Outperform recommendation on the stock, which also has a Zacks #1 Rank (Strong Buy).
Bear of the Day:
We downgrade our rating on Quality Systems, Inc. (QSII - Analyst Report) to Underperform with a target price of $27. The company reported earnings per share of $0.26 in fourth-quarter fiscal 2012, just missing the Zacks Consensus Estimate.
Quality Systems offers an electronic health record (EHR) product and is benefiting from the migration of ambulatory and inpatient practices to EHR under the federal stimulus. Of late, however, growth of its pipeline metric has been on a falling trend along with progressively lower number of signed deals on a quarterly basis. The company has made multiple acquisitions to bolster organic growth. Its acquisitions are expected to facilitate its entry in the small hospital segment.
We are concerned about execution risk emanating from Quality Systems entry into the rural inpatient market. Also, on the negative side, it competes in a fragmented market with larger competitors. The market is price sensitive and vulnerable to price cutting.
Latest Posts on the Zacks Analyst Blog:
Kellogg Closes Pringles Buy from P&G
Retail giant, The Procter & Gamble Company (PG - Analyst Report) recently announced that it has completed the sale of its snacks unit, which included the iconic potato snack Pringles, to the world’s largest cereal maker Kellogg Company (K - Analyst Report) for $2.7 billion.
The Pringles workforce as well as the manufacturing plants at Jackson, Tennessee, and Mechelen, Belgium, will now be under the purview of Kellogg. The deal which was first announced in February this year will result in an after-tax gain in the range of $1.4 billion to $1.5 billion (approximately 47 cents to 50 cents per share) for P&G.
With the deal, Kellogg becomes a strong player in the savory snacks business, second only to PepsiCo, Inc. (PEP - Analyst Report). Further, we believe the Pringles buyout is likely to reduce Kellogg’s dependence on its mainstay cereal business apart from adding an important brand to its already popular offerings of snacks like Keebler and Cheez-It.
The buyout is expected to strengthen sales in Europe and mark a forceful entry in Asia and Latin America. In North America, the addition is expected to boost revenues by more than $500 million. With the Pringles deal closed, the company is expected to generate more than $15 billion in annual sales and over $6 billion in snacks sales globally. The Pringles deal is expected to dilute Kellogg’s 2012 earnings by 6–11 cents per share.
We currently have a Neutral recommendation on both Procter & Gamble and Kellogg. The Kellogg stock carries a Zacks #3 Rank (Hold rating) while P&G carries a Zacks #4 Rank (Sell rating) in the near term.
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.
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.
Zacks Investment Research
800-767-3771 ext. 9339