For Immediate Release
Chicago, IL – July 13, 2017 –Zacks Equity Research Worthington Industries (NYSE: (WOR - Free Report) – Free Report ) as the Bull of the Day, Motorcar Parts of America (NASDAQ:(MPAA - Free Report) – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon.com (NASDAQ: (AMZN - Free Report) – Free Report ).
Here is a synopsis of all three stocks:
Bull of the Day :
Worthington Industries (NYSE:(WOR - Free Report) – Free Report ) who currently carries a Zacks Rank #1 (Strong Buy) is one of the leading diversified metal processing companies. The company is one of North America's premier value-added steel processors and one of the leaders in manufactured metal products such as automotive aftermarket stampings, pressure cylinders, metal framing, metal ceiling grid systems and laser welded blanks.
Recent Earnings Results
The company reported Q4 17 results on June 28th, and they easily beat both the Zacks consensus earnings and revenue estimates. The fourth quarter results saw a year over year (YOY) gains in several different areas; net sales +18.3%, operating income +31.3%, gross margins +15.2%, and interest expenses were cut by 18.5%. The Steel Processing segment saw YOY net sales jump up by +25%, the Pressure Cylinders segment had net sales improve by +6%, and the Engineered Cabs segment saw net sales rise by +2%. The big jump in net sales in the Steel Processing segment was due to higher average selling prices and improved overall volume compared to the year ago quarter.
According to John McConnell, Chairman and CEO, “ We finished our fiscal year with strong results, leading to record annual earnings per share for the Company. While we benefited from rising steel prices, we also saw increases in volume for Steel Processing with improvements in markets such as agriculture. Pressure Cylinders performance was steady for the year despite headwinds caused by softness in the oil & gas equipment market, which showed signs of improving in the fourth quarter. Engineered Cabs also benefited from better agriculture and construction markets .”
Mr. McConnell commented about fiscal year 2018 stating, “ As we begin our new fiscal year, we are optimistic that we will continue to see improvements in some of our key markets, and we are very pleased to have closed on our largest acquisition to date with the purchase of Amtrol. We think the addition of Amtrol, along with the successful traction of Transformation in Pressure Cylinders, provide good momentum and have us well-positioned for growth. All of our businesses are focused on continuing to improve through our Transformation in driving lean practices, with innovation and by strengthening our competitive position in the markets we serve .”
Bear of the Day :
Our Zacks Bear of the Day, Motorcar Parts of America (NASDAQ:(MPAA - Free Report) – Free Report ) has recently experienced a decline in demand as retailers have reduced their restocking orders as of late. The company has experienced weakness in both the wheel hubs and break master cylinder segments.
This Zacks Rank #5 (Strong Sell) company is a leading manufacturer of replacement alternators and starters for imported and domestic cars and light trucks in the United States and Canada. The company's full line of alternators and starters are remanufactured for vehicles imported from Japan, Germany, Sweden, France and Korea. The imported vehicles for which the company remanufactures alternators and starters also include vehicles produced by GM, Chrysler and Ford. The company also assembles and distributes ignition wire sets for imported and domestic cars and light trucks.
Recent Earnings Results
The company posted Q4 17 results in mid-June where they missed both the Zacks consensus earnings and revenue estimates. Management blamed mild winter weather and delayed tax returns as the main reasons for the top and bottom line misses. Further, the poor weather conditions caused their retail point of sale (POS) customers to see increased inventories, and in some cases these retailers returned the excess inventory to MPAA. While weather and delayed tax returns may have had some impact on the buildup of inventories, most analysts would counter with the fact if there was true demand for their products weather and tax returns would not have detoured the sales of their products. These two excuses are typically looked upon as vague scapegoats for lack of true demand for products.
According to Selwyn Joffe, President and CEO, “ Our results for fiscal 2017 reflect strong growth and continued momentum into the new fiscal year despite the impact of a mild winter on our sales .”
Prime Day Lifts Amazon Above $1000 per Share
On Wednesday, shares of e-commerce giant Amazon.com (NASDAQ:(AMZN - Free Report) – Free Report ) are back above the $1,000 mark, and in late-afternoon trading, the tech stock is up about 1.26% to $1,006.72 per share.
Prime Day 2017 was a huge success for Amazon, with sales growing by over 60% from last year’s event. The company said Prime Day was its “biggest day ever”—Amazon also said that about Prime Day 2016—and sales this year surpassed its 2016 Black Friday and Cyber Monday results.
Amazon saw a “record number” of Prime members shopping across 13 countries, and the company said that “tens of millions of Prime members” purchased items during the shopping event, representing a 50% increase from Prime Day 2016.
Amazon also said that it added more new Prime members on July 11 than on any other day in the company’s history. Prime Day has become an effective way to increase sign-ups for its popular membership service, and this year is a key example of the power of Prime (also read: Everything an Amazon Prime Membership Gets You Today ).
"To those customers who tried Prime for the first time and our long time members, thank you for a great Prime Day," Greg Greeley, the Amazon Prime division's vice president, said in a statement.
"Our teams around the world will keep working to add more and more to your membership, so Prime continues to make your life better every day. We are already looking forward to our Prime Day celebration next year."
The Echo Dot, Amazon’s mini Alexa-enabled smart speaker, was the most sold product during Prime Day, and the device helped the company achieve its huge sales numbers this year. The Dot was on sale for $34.99 (originally $50), and outsold thousands of other items that were also discounted like television sets and other household products.
Like its bigger sibling, the Echo Dot can be used to get information about the weather, order things from Amazon, play music, and much more; it offers many of the same features as the original Echo, but it has a lower-quality speaker.
Prime Day 2017 also saw record sales for the Echo, Fire Tablets, and the Kindle. Excluding Amazon devices, an Instant Pot pressure cooker was a top-selling item in the U.S., while shoppers in the U.K. were picking up Sony PlayStation 4s. In Germany and Austria, Amazon sold a ton of Soda Stream machines, and in Japan, Happy Belly bottled water was popular.
Amazon shares first crossed the $1,000 milestone back in May, and rose as high as $1,017 a share before falling back down.
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 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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on WOR - FREE
Get the full Report on MPAA - FREE
Get the full Report on AMZN - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://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.