For Immediate Release
Chicago, IL – July 5, 2013 – Zacks Equity Research highlights Dreamworks Animation SKG ((DWA - Analyst Report) -Free Report) as the Bull of the Day and Southern Copper ((SCCO - Snapshot Report) -Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Hasbro Inc. (HAS - Analyst Report) -Free Report), Electronic Arts Inc. (EA - Analyst Report) -Free Report) and Zynga Inc. (ZNGA - Snapshot Report) -Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Although global markets might be facing some significant uncertainty, the U.S. is still holding up better than most. This is particularly true in the consumer market, where spending is holding up quite well.
Plus, there has also been some modest progress on the job creation front, while housing has been an especially strong component of the renewed consumer confidence. After all, with prices surging at a roughly 10% annual rate, many are likely feeling much better about their financial situations, and thus eager to spend in the second half of the year.
There are a number of ways to play this trend with stocks, such as by targeting retail companies, automotive firms, or even movie studios. Companies in the movie studio space represent an especially intriguing way to invest in this environment, as they are often overlooked as a way to play a strong consumer market. While there are a few publicly traded firms in this sector, one that is looking really good now is Dreamworks Animation SKG ((DWA - Analyst Report) -Free Report).
DWA was founded by some of the biggest names in the entertainment industry (Steven Spielberg, David Geffen, and former Disney executive Jeffrey Katzenberg), and has grown into a major studio specializing in animated films. Some of its biggest hits include ultra-popular names like those in the Shrek, Madagascar, and Kung Fu Panda series, all of which have grossed over $1 billion in their respective franchises.
Bear of the Day:
Global markets are once again reeling thanks to a number of political issues. Emerging markets are under pressure thanks to a variety of protests, while developed markets in Europe are facing uncertainty thanks to more debt concerns.
This trend has led to devastating consequences for a variety of commodity producers, as the dollar has strengthened against a number of global currencies. Plus, many key markets such as China could see reduced demand levels in the months ahead, further adding to commodity producers’ woes.
In particular, gold and silver miners have seen weakness in this environment, falling by well over 45%, as represented by the Gold Mining ETF, since the start of 2013. Yet, while many investors have been laser-focused on the precious metal market, there has also been significant weakness in the base metal world as well.
Companies in this space have been hit hard by the same issues of a strong dollar and sluggish international demand, and could thus be ones to avoid as well. One firm in particular that could struggle in this environment is Southern Copper ((SCCO - Snapshot Report) -Free Report).
SCCO is a major U.S.-based producer of copper in key Latin American countries, but especially in Peru and Mexico. The firm mines over one billion pounds of copper—for the last full year—while it smelts and refines a similar amount as well.
The company saw soaring stock prices for much of 2012, although the firm did see extreme price volatility. However, the stock has since cratered in 2013, falling by about 30% in the first half of the year.
Hasbro, EA Ink Mobile Gaming Deal
In order to cater to the increasing preference for digital toys, toy maker Hasbro Inc. (HAS - Analyst Report) -Free Report) recently inked a licensing agreement with the global leader in digital interactive entertainment business, Electronic Arts Inc. (EA - Analyst Report) -Free Report). Per the four-year deal, Electronic Arts will develop mobile compatible versions of some of Hasbro’s popular games like Monopoly, Scrabble, Game of Life, Battleship, Boggle, Clue, Risk and Yahtzee. Financial terms and conditions of the deal have not been disclosed yet.
Electronic Arts has a long-standing relationship with Hasbro and has been regularly developing digital versions of the latter’s popular games. Deals like these provide Hasbro an opportunity to participate in faster-growing digital gaming/casual entertainment category, a market that is expected to grow significantly in the years ahead.
Hasbro has been working hard to transition its product portfolio from traditional board games/toys to digital solutions to cope with recent trends. Actually, these days, toy manufacturers have been negatively impacted by age “compression” as children are growing up faster. Toy manufacturers have to battle a broad array of alternative modes of entertainment including video games, MP3 players, tablets, smartphones and other electronic devices.
Hasbro has been highly active in signing gaming deals. Some of Hasbro’s recent associations include partnerships with Callaway Digital Arts, PopCap Games, which is an operating unit of Electronic Arts and The Tetris Company, which is one of the world’s most successful video game development companies. Apart from these, in 2012, Hasbro launched a new line of gaming products in the U.S., U.K., Australia and Canada in collaboration with the world’s largest social game developer – Zynga Inc. (ZNGA - Snapshot Report) -Free Report).
Hasbro currently carries a Zacks Rank #3 (Hold).
Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:
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.
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 DWA - FREE
Get the full Report on SCCO - FREE
Get the full Report on HAS - FREE
Get the full Report on EA - FREE
Get the full Report on ZNGA - 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.
Zacks Investment Research
800-767-3771 ext. 9339
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.