For Immediate Release
Chicago, IL – October 13, 2016 – Zacks Equity Research highlights Sanderson Farms (NASDAQ:SAFM- Free Report) as the Bull of the Day and Mosaic (NYSE:(MOS - Analyst Report) - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon.com Inc. (NASDAQ:(AMZN - Analyst Report) -Free Report) andApple (NASDAQ:(AAPL - Analyst Report) - Free Report).
Here is a synopsis of all the four stocks:
Bull of the Day :
Sanderson Farms (NASDAQ:SAFM- Free Report) is an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The company sells to retailers, distributers and casual dining operators. Sanderson was founded in 1947, is based in Laurel, Mississippi and employs over 12,000 employees. The stockis ZacksRank #1 (Strong Buy) and todays Bull of the Day.
Sanderson has a market cap of $2 billion with a Forward PE of 13. The company has a dividend of 1% and expected EPS growth rate of 5%. The stock sports Zacks Style Scores of “A” in both Value and Momentum. In addition, the company also sits in an industry that is ranked 6 out of 265 (Top 2%) in the Zacks Industry Rank.
Sanderson reported earnings in late August, with an EPS beat of 8.52%. The company did miss on revenues , which was due to food service traffic and demand in the US being “stubbornly static”. However, the company saw chicken prices move significantly higher in August.
CEO Joe Sanderson Jr. had some comments on the quarter and the facilities in Texas and North Carolina: “We continue to be pleased with progress at our new Palestine, Texas facilities, said Sanderson. The plant is now operating at near full capacity, and the startup has been well executed. Construction continues on our new St. Paul’s, North Carolina facilities, and we look forward to the opportunities the new facilities will provide to our shareholders, our customers and our employees when we begin processing at the new plant during our first fiscal quarter of 2017.”
Sanderson has had a pretty good track record when it comes to beating EPS. After three straight EPS misses in 2015, the 2016 has reversed course. Last quarter’s beat was the third straight quarter with a surprise to the upside. With the positive earnings momentum, the stock has trended higher, up over 20% this year.
Investors should remember to keep an eye on estimates going forward. While last quarter did see an 8% beat, the previous quarters saw double digit beats of 36% and 74%. Hitting numbers like the company saw earlier in the year will drive the stock higher, back over the $100 level.
Bear of the Day:
Mosaic ( NYSE:(MOS - Analyst Report) - Free Report) produces and markets concentrated phosphate and potash crop nutrients primarily for the agricultural industry worldwide. The company operates through three segments: Phosphates, Potash, and International Distribution. The stock price is largely reflected by the price of agricultural commodities, which have seen price pressure this year.
Mosaic is the Bear of the Day as it looks like it will take out 52 week lows. The stock is a Zacks Rank #5 (Strong Sell) and has been since February.
Mosaic was founded in 2004 and is based in Plymouth, Minnesota where it employs almost 9,000. The company has a market cap of $8 billion and a Forward PE of 54. The stock sports Zacks Style Scores of “D” in Growth and “C” in both Value and Momentum. The stock is down over 20% since late August after false buyout rumors, earnings and falling estimates.
The company reported Q4 EPS on August 2nd, where it missed on both the top and bottom line. The 66% miss on EPS was the first miss in four quarters, but it was widely expected as the stock lost half its value over that year. The corn, wheat and soybean crop has been one of the best on record this season, which has brought down commodity and potash prices. This makes Mosaics job difficult as demand for their product goes down as farmer’s margins tighten.
Because of the demand and pricing issues Mosaic faces, estimates for the company have been coming down. Over the last 60 days, estimates have been revised lower for all time frames. For fiscal year 2016, the numbers have been taken down 31%, from $0.67 to $0.46. For next year, estimates are now seen at $0.89, down from $1.17 or 23%.
Amazon Debuts Streaming Music Service Today
Back in August, Iwrote aboutAmazon.com Inc.’s (NASDAQ:(AMZN - Analyst Report) - Free Report) rumored interest in launching a music streaming service exclusively for its Echo devices, and on Wednesday, the e-commerce giant has finally debuted Amazon Music Unlimited, the latest addition to the heavily populated music streaming industry.
Like competitors Spotify and Apple’s (NASDAQ:(AAPL - Analyst Report) - Free Report) Apple Music, users can enjoy ad-free, on-demand music from a catalog of tens of millions of songs for $10 per month. If you’re already a Prime member, you’ll receive a discounted rate of $8 per month in addition to the membership’s annual cost of $99.
However, if you decide that you can live with only listening to Amazon Music Unlimited on the Echo speaker, you only have to shell out $4 a month, arguably the cheapest option out there for consumers. The service will be available on all Echo devices, including the original Echo, the Amazon Tap, and Echo Dot.
Along with the price, subscribers of the Echo option now have new ways to ask Alexa, Amazon’s voice-controlled personal assistant, to play songs. You can ask her to play your favorite artist’s latest single or begin a specific playlist, among other ways; users can even ask, “Alexa, play that song that goes like…,” singing whatever lyrics you can remember.
If the less-expensive Echo option proves successful, Amazon could potentially shift the way music listeners consume on-demand music. Generally, music streaming has relied heavily on mobile phone usage. Most of Spotify users sign up for the service on their phones, while Apple Music was focused almost entirely on potential subscribers who had iPhones.
To listen to Amazon Music Unlimited’s $8 and $10 listening options, you will need to download the new mobile app. Users can try out these options free with a 30-day trial.
Currently, Spotify has 40 million paying members, while Apple Music has 17 million. Amazon Music Unlimited certainly has the potential to reach these subscriber levels. And if not, Amazon can at least bet on a rise in sales of its Echo products, which already are projected to sell 3 million this year and 10 million in 2017.
Stocks that Aren't in the News…Yet
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