For Immediate Release
Chicago, IL – August 29, 2017 – Zacks Equity Research highlightsToyota Motor (NYSE:TM – Free Report)as the Bull of the Day Bojangles’ (NASDAQ:BOJA – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon’s (NASDAQ:AMZN – Free Report), Walmart (NYSE:WMT – Free Report)and Whole Foods (NASDAQ:WFM – Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
There are definitely some concerns over ‘peak auto’ demand here in the U.S., and also elsewhere too. Part of the blame is due to millennials and their reduced driving habits, but a recent run of lukewarm sales reports is also making some believe that the best days are behind the auto industry, at least in the near-term.
And although these issues are definitely a bit of a concern, you’d never know it if you looked at recent trends for some of the key companies in the space. In fact, the auto sector is currently in the top third from a rank perspective, while both domestic and foreign manufacturers have similar ranks too. That is why it might behoove investors to take a closer look at a stock like Toyota Motor (NYSE:TM – Free Report) right now.
Toyota in Focus
Toyota’s strength stems from its great run in terms of beating earnings estimates—it hasn’t missed since the start of 2016—and the fact that analysts have been raising their estimates for the stock’s earnings potential as of late. In fact, not a single estimate in our consensus has gone lower for either the current quarter, the current year, or next year time frames in the past two months.
It isn’t much of a secret that things have been pretty poor for the restaurant industry as of late. Competitive pressures, changing consumer tastes, and a general shift away from the space by investors, have all combined to push the industry lower.
In fact, the restaurant industry is currently in the bottom 15% of all the industries we track, while its sector is in dead last too. If that wasn’t enough, consider that just five of the 55 companies in the restaurant sector have a rank better than ‘hold’ right now.
So, in such a weak environment, which companies do you want to avoid most of all? Well, one that you definitely need to be aware of—and may want to consider staying clear from—is Bojangles’ (NASDAQ:BOJA – Free Report). This is especially clear when you look at some of the most recent earnings estimates for Bojangles’ stock.
Though BOJA has a decent history when it comes to beating earnings estimates, most analyst opinion of the stock lately has been negative, at least when looking at their prospects for earnings. We actually haven’t seen a single estimate go higher for the current quarter, current year, or next year time frames, in the last sixty days.
We have, instead, seen a dramatic decrease in the consensus estimate for BOJA stock. The consensus has declined by almost 20% for the current quarter in the past two months, while the full year has fallen by 10% in the same time frame. Thanks to these shifts, the company is now expected to see earnings contract by 30% year-over-year, while there is a 16% decline projected for the current year too.
"Farm Fresh" Amazon Echo Speakers Now Available at Whole Foods
Today marks the closing of Amazon.com’s (NASDAQ:AMZN – Free Report) $13.7 billion acquisition of Whole Foods Market (NASDAQ:WFM – Free Report), and the e-commerce giant has already implemented major changes in the upscale grocery chain.
One of most noticeable changes customers will find is the arrival of Amazon’s Echo smart speakers, now available for sale in their local Whole Foods. The company, shown in the tweets below, has cleverly advertised the devices like one of Whole Foods’ “Pick of the Season,” and the Echo and Echo Dot are selling for the same price as what you’d find on Amazon.com.
Many have wondered how Amazon would integrate its Alexa-powered technology in Whole Foods stores, and selling Echo devices seems like a logical start.
In addition to offering its Echo speakers in stores, Amazon has also been cutting prices on many of Whole Foods’ staples grocery items. These include everything from organic fuji apples, organic rotisserie chicken to bananas and organic avocados. Avocados, for example, fell to $1.99 each from $2.79, which falls in line with most other supermarket chains.
According to Bloomberg, the marked down items were displayed with orange signs that said “Whole Foods + Amazon,” listing the old price and the new price, and the phrase “More to come…”.
High prices have always held back Whole Foods in some way, earning the company the nickname “Whole Paycheck” and making it easier for other grocery chains like Walmart (NYSE:WMT – Free Report) and Aldi to begin building their own successful organic and natural food reputations. But with Amazon now at the helm, Whole Foods can start bringing back those customers it may have lost over the years.
"This is just the beginning – Amazon and Whole Foods Market plan to offer more in-store benefits and lower prices for customers over time as the two companies integrate logistics and point-of-sale and merchandising systems," Amazon and Whole Foods said in a press release last Thursday.
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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.
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