For Immediate Release
Chicago, IL – September 26, 2016 – Zacks Equity Research highlightsNewmont Mining (NEM - Analyst Report) as the Bull of the Day and Red Robin Gourmet Burgers (RRGB) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Walt General Mills (GIS - Analyst Report) , Charter Communications ( (CHTR - Analyst Report) and Cisco (CSCO - Analyst Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Thanks to a few Fed member comments, some investors were worried that the Federal Reserve would shock the markets and hike rates in the September meeting. However, not only did the Fed keep rates at their current levels, but they actually lowered rate hike forecasts for the future as well.
So while a rate hike seems likely before the year is out, that could be it for a while. This is in somewhat sharp contrast to even just a few weeks ago, and it is a good reminder that the Fed is going to go low and slow for quite some time.
Market Impact & Where to Look Now
This shift in expectations has led to a nice boost for dividend stocks, foreign securities, and also anything linked to commodities. As the Fed looks to keep rates low investors will increasingly look to precious metals, which is great news for miners in the space.
That is why now could be a perfect time to look at the gold mining industry for some top picks, as securities here can act as leveraged plays on the movement in the price of gold, while the industry rank is currently in the top 50% too. And while there are plenty of great choices in this market, it is going to be hard to beat Newmont Mining (NEM - Analyst Report) in the near term.
NEM is one of the larger and more established mining companies in the gold world, with a market cap over $20 billion. Like many companies in the space, it has been on a tear this year, with gains of over 100% in the time frame. But unlike several of its competitors, analysts are remaining bullish on the company’s prospects, as earnings estimates have been on the rise for this company.
In fact, not a single analyst has decreased their earnings estimate in the past two months for either the current quarter or the current year time frames. And it isn’t like the estimate shifts have been small either, as the current quarter consensus has increased by 20% in the past two months, while the full year figure has gone up about 28% in the same time frame.
Bear of the Day :
The restaurant business is a notoriously difficult one. This may be especially true in the burger business, thanks to intense competition and a bit of a burger craze over the past few years which has once again focused consumers and investors on this market.
But after a flurry of IPOs, key changes at behemoth McDonald’s, and waning consumer and investor interest in the market, several companies are beginning to feel the pain in this cutthroat market. One such burger stock that has been having a rough time and really epitomizes this trend is definitely Red Robin Gourmet Burgers (RRGB) .
Inside RRGB’s recent performance
Red Robin was really ahead of the curve with its more gourmet burgers and it was arguably one of the key leaders in the ‘better burger’ movement. This led to big stock price gains a few years ago, and led to massive returns for investors who had been in the stock for the long haul.
However, the incredible run came to an end in the summer of 2015 and the company has been on a downward trajectory—at least in terms of its stock price—ever since. In fact, the stock has lost about 39% over the past 52 weeks and it even missed earnings estimates in their most recent report. But that might not be the end of the pain for RRGB, at least if we look to recent earnings estimate revisions.
Analysts have been ratcheting down their expectations for RRGB’s upcoming quarter and the full year too in recent weeks. Not a single estimate for either the current quarter or the current year has gone higher in the past two months, while at least five have gone lower for both of the time periods.
And the magnitude of these declines has also been troubling, as the current quarter consensus has fallen by over 16% in the past two months, while the following quarter has seen a nearly 20% decline. The full year outlooks aren’t much better, as they have fallen by about 7.7% for the full year and over 8.7% for the following one, suggesting that more pain could be ahead for RRGB.
Top Research Reports from General Mills, Cisco and Charter Communications
Today's Research Daily features new research reports on 16 major stocks, including General Mills (GIS - Analyst Report) , Charter Communications (CHTR - Analyst Report) and Cisco (CSCO - Analyst Report) .
General Mills is in a tough spot, having to respond to ever-changing consumer tastes. The issue becomes particulalry problematic when it isn't clear whether the change is a result of a passing fad or something more enduring. The stock has lost ground lately after remaining strong earlier (it is still up 13% year-to-date), with the recent earnings release spotlighting continued top-line problems, with yogurt emerging as a notable weak spot in the product portfolio. The cereal business appears to have stabilized. But they will need to do more to move the needle on the revenues front, as they have been able to sustain profits through effective cost controls. (You can read the full research report on General Mills here>>)
Charter Communications has been on a roll lately, with the stock up more than 35% year-to-date on the back of its merger with Time Warner Cable. The merger will also allow Charter to offer enhanced services and more streaming video product options to its customers. Charter has also announced that it will venture into the U.S. wireless market. However, online videos provide an extremely cheap source of TV programming and are gaining momentum, threatening the pay TV model. (You can read the full research report on Charter Communications here >> )
Cisco ’s shares have surged ahead of the broader market year-to-date, gaining more than 16%. The analyst likes the company’s market position, innovative prowess, product range, growth initiatives, new investments and attractive dividend. Additionally, overall growth prospects remain positive because of the drive toward cloud computing and increasing data flow on carrier and computing networks. Recently, Cisco and salesforce.com announced a partnership to integrate their cloud platforms. However, the increasing competition and challenges in China remain concerns. (You can read the full research report on Cisco here.)
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