Tuesday, May 31, 2011
Fiat's Stake in Chrysler to Hit 57% - Analyst Blog http://www.zacks.com/stock/news/54235/Fiat%27s+Stake+in+Chrysler+to+Hit+57%25
Monday, May 30, 2011
Friday, May 27, 2011
Personal Income, Savings Both Rise 0.4% - Analyst Blog http://www.zacks.com/stock/news/54133/Personal+Income%2C+Savings+Both+Rise+0.4%25
Thursday, May 26, 2011
Unum Commits 13.5% Dividend Hike - Analyst Blog http://www.zacks.com/stock/news/54058/Unum+Commits+13.5%25+Dividend+Hike
Top 5 Best Performing Utilities Mutual Funds - Best Performing Funds Year To Date http://ping.fm/R9WBk
Wednesday, May 25, 2011
Tuesday, May 24, 2011
Monday, May 23, 2011
Sunday, May 22, 2011
Friday, May 20, 2011
Thursday, May 19, 2011
Wednesday, May 18, 2011
Stock Market News for May 18, 2011
Lukewarm economic data discouraged investors as it showed further signs of economic weakness and coupled with the negative outlook from Hewlett-Packard Company, the markets continued its stay in the red. However, on the back of favorable corporate results, the indices showed some resistance to limit its losses but could not prevent the markets from declining for the third-straight day.
The Dow Jones Industrial Average (DJIA Today), during the day, had dropped 170 points but finally rebounded to close at 12,479.58, shedding 68 points or 0.5%. The Dow finished at its lowest level since April 20. The Standard & Poor 500 (S&P 500) dropped 0.04% to finish off at 1,328.98. However, the Nasdaq Composite Index was up 0.03%. The fear-gauge CBOE Volatility Index (VIX) was up over 18. On the New York Stock Exchange, decline-advance ratio was 17:12. So far in the week, the benchmarks have been trading down as the Dow, S&P 500 and the Nasdaq are down 0.9%, 0.7% and 1.6%, respectively.
As we said earlier, approaching the end of the earnings season the markets will depend heavily on the economic data with the lack of any other major news. Unfortunately, economic data is displaying a downtrend for the economy and subsequently the indices are edging lower. On Tuesday even, the economic data came in to heighten investors’ concern about the economy as factory production and housing data both fell.
According to a Federal Reserve report, factory output in US fell for the first time in 10 months as it declined 0.4% in last month. The report came in against the analysts’ expectations of an increase of 0.4% in the overall factory production. The Federal Reserve reasoned the natural disaster in Japan to have caused the decline as it disrupted the supply of the auto parts. However, factory output was up 0.2%, without considering the auto vehicles and parts. Meanwhile, the total industrial production was up 5% from its year-ago level.
Separately, the housing markets continued to return gloomy picture as the Commerce Department reported housing starts to have fallen 10.6% or to seasonally adjusted 523, 000 units annual rate. Permits for new houses were down 4.0% to 551,000 in April and single-family home building was also down 5.1%. Housing sector is causing much jitters as this report added to the concern already built by reports from the National Association of Home Builders (NAHB) that came in a day earlier of this disappointing report. On Monday, NAHB said that the index measuring the confidence of home builders remained unchanged this month. The index lingered at the low level of 16 and suggested no improvement in the housing sector.
Investors’ sentiments were further weighed down after the CEO of Hewlett-Packard Company (NYSE:HPQ) warned of “another tough quarter" coming up. The company gave a negative outlook and reduced the guidance. Leo Apotheker, CEO of HPQ, commenting on the company missing some market opportunities said: "We are going to address this. We are going to focus our services business on the higher part of the value chain. That requires some work, some investment, and hence the impact it will have for a couple of quarters”. He further said: "We're not going to wait any longer. We are going to make a few changes. Therefore, we have to adjust our margin expectations for services". The company slashed the full-year earnings guidance from $5.20-$5.28 to $5.00 per share and chopped the full year revenue estimate from $130 billion- $131.5 billion to $129 billion-$130 billion. This took a dip at the shares of the company and went down 7.3% to settle at $36.91.
The crude-prices in recent days have been trending down and on Tuesday the crude prices for June delivery were down 0.5% to $96.91 per barrel. In the energy sector, shares of Chevron Corp. (NYSE:CVX), Transocean Ltd. (NYSE:), Halliburton Company (NYSE:HAL) and Schlumberger Limited (NYSE:SLB) were down 0.5%, 1.0%, 0.2% and 0.2%, respectively. However, shares like ConocoPhillips (NYSE:COP) and Exxon Mobil Corporation (NYSE:XOM) were both up 0.2%.
Talking about the sectors, materials and industrials suffered heavy fall. Shares like Caterpillar Inc. (NYSE:CAT), Alcoa, Inc. (NYSE:AA), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Southern Copper Corp. (NYSE:SCCO) were down 3.8%, 2.8%, 1.1% and 1.3%, respectively.
Originally Posted Here: Stock Market News for May 18, 2011
The Dow Jones Industrial Average (DJIA Today), during the day, had dropped 170 points but finally rebounded to close at 12,479.58, shedding 68 points or 0.5%. The Dow finished at its lowest level since April 20. The Standard & Poor 500 (S&P 500) dropped 0.04% to finish off at 1,328.98. However, the Nasdaq Composite Index was up 0.03%. The fear-gauge CBOE Volatility Index (VIX) was up over 18. On the New York Stock Exchange, decline-advance ratio was 17:12. So far in the week, the benchmarks have been trading down as the Dow, S&P 500 and the Nasdaq are down 0.9%, 0.7% and 1.6%, respectively.
As we said earlier, approaching the end of the earnings season the markets will depend heavily on the economic data with the lack of any other major news. Unfortunately, economic data is displaying a downtrend for the economy and subsequently the indices are edging lower. On Tuesday even, the economic data came in to heighten investors’ concern about the economy as factory production and housing data both fell.
According to a Federal Reserve report, factory output in US fell for the first time in 10 months as it declined 0.4% in last month. The report came in against the analysts’ expectations of an increase of 0.4% in the overall factory production. The Federal Reserve reasoned the natural disaster in Japan to have caused the decline as it disrupted the supply of the auto parts. However, factory output was up 0.2%, without considering the auto vehicles and parts. Meanwhile, the total industrial production was up 5% from its year-ago level.
Separately, the housing markets continued to return gloomy picture as the Commerce Department reported housing starts to have fallen 10.6% or to seasonally adjusted 523, 000 units annual rate. Permits for new houses were down 4.0% to 551,000 in April and single-family home building was also down 5.1%. Housing sector is causing much jitters as this report added to the concern already built by reports from the National Association of Home Builders (NAHB) that came in a day earlier of this disappointing report. On Monday, NAHB said that the index measuring the confidence of home builders remained unchanged this month. The index lingered at the low level of 16 and suggested no improvement in the housing sector.
Investors’ sentiments were further weighed down after the CEO of Hewlett-Packard Company (NYSE:HPQ) warned of “another tough quarter" coming up. The company gave a negative outlook and reduced the guidance. Leo Apotheker, CEO of HPQ, commenting on the company missing some market opportunities said: "We are going to address this. We are going to focus our services business on the higher part of the value chain. That requires some work, some investment, and hence the impact it will have for a couple of quarters”. He further said: "We're not going to wait any longer. We are going to make a few changes. Therefore, we have to adjust our margin expectations for services". The company slashed the full-year earnings guidance from $5.20-$5.28 to $5.00 per share and chopped the full year revenue estimate from $130 billion- $131.5 billion to $129 billion-$130 billion. This took a dip at the shares of the company and went down 7.3% to settle at $36.91.
The crude-prices in recent days have been trending down and on Tuesday the crude prices for June delivery were down 0.5% to $96.91 per barrel. In the energy sector, shares of Chevron Corp. (NYSE:CVX), Transocean Ltd. (NYSE:
Talking about the sectors, materials and industrials suffered heavy fall. Shares like Caterpillar Inc. (NYSE:CAT), Alcoa, Inc. (NYSE:AA), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Southern Copper Corp. (NYSE:SCCO) were down 3.8%, 2.8%, 1.1% and 1.3%, respectively.
Originally Posted Here: Stock Market News for May 18, 2011
Target Posts Positive Surprise
Target Corporation (TGT), the operator of general merchandise and food discount stores in the United States, recently posted better-than-expected first-quarter 2011 results on the heels of improved profitability across credit card business that helps in alleviating lower-than-expected sales results witnessed at retail stores.
The quarterly earnings of 99 cents a share beat the Zacks Consensus Estimate of 94 cents, and rose from 90 cents earned in the prior-year quarter.
The Zacks Consensus Estimate for the quarter dropped by a penny with 6 out of 23 analysts covering the stock lowered their projections in the last 30 days.
Behind the Headline
Total revenue for the quarter climbed 2.2% to $15,935 million from the prior-year quarter but fell short of the Zacks Consensus Estimate of $16,099 million. Retail sales grew 2.8% to $15,580 million as shoppers are gradually opening up their wallets but still remain cautious on their spending. Consumers are now grappling with rising food and gasoline prices.
Minneapolis, Minnesota-based Target said that comparable-store sales for the quarter grew 2% compared with 2.8% increase registered in the prior-year quarter. The number of transactions rose marginally by 0.4%, whereas the average transaction amount climbed 1.6% in the quarter.
Gross profit at the Retail segment fell marginally by 0.1% to $4,742 million, whereas gross margin shriveled 90 basis points to 30.4%, as increase in sales were not able to fully offset 4.1% rise in cost of sales. Segment operating income dropped 4.2% to $1,062 million, whereas operating margin contracted 50 basis points to 6.8%.
The company indicated that revenue from the Credit Card segment tumbled 18.3% to $355 million. However, Target was quick to indicate that segment profit rose to $194 million in the quarter under review from $111 million delivered in the prior-year quarter helped by a decline in bad debt expenses.
Target’s credit card penetration increased 150 basis points to 5.9%, whereas debit card penetration expanded 120 basis points to 1.7% during the quarter. Total store REDcard penetration climbed to 7.6% from 4.9% in the year-ago quarter.
Management indicated that Target’s P-fresh remodel program and 5% REDcard Rewards program will help sustain sales momentum, continue to drive traffic and enhanced customer shopping experience.
Other Financial Details
During the quarter, Target repurchased about 15.4 million shares at a price of $53.32 per share, aggregating $819 million.
The company ended the quarter with cash and cash equivalents of $1,474 million, total unsecured debt and other borrowings of $11,764 million and shareholders’ equity of $15,230 million.
Target currently, operates 1,755 stores in 49 states, of which 953 are general merchandise stores, 550 are expanded grocery assortment and 252 are SuperTarget stores.
Our View
Target’s efficient marketing, multi-channel strategy, product innovation, compelling pricing strategy and new merchandise assortments, should help drive comparable-store sales and operating margins in the long term. We expect the company to gain market share, and believe that more focus on consumable items should boost sales and earnings in a sluggish consumer environment.
Target now tends to focus more on store renovations and enhancing store sales productivity, introducing smaller format stores, and eyeing opportunities to open stores in the international markets.
The greater concentration of Target’s revenue generating capability in a few regions of the United States, poses a competitive threat, compared to Wal-Mart Stores Inc. (WMT) and Costco Wholesale Corporation (COST), who are geographically more diversified and more resourceful.
Consequently, we prefer to have a long-term Neutral rating on the stock. Moreover, Target holds a Zacks #3 Rank, which translates into a short-term Hold rating.
Originally Posted Here: Target Posts Positive Surprise
The quarterly earnings of 99 cents a share beat the Zacks Consensus Estimate of 94 cents, and rose from 90 cents earned in the prior-year quarter.
The Zacks Consensus Estimate for the quarter dropped by a penny with 6 out of 23 analysts covering the stock lowered their projections in the last 30 days.
Behind the Headline
Total revenue for the quarter climbed 2.2% to $15,935 million from the prior-year quarter but fell short of the Zacks Consensus Estimate of $16,099 million. Retail sales grew 2.8% to $15,580 million as shoppers are gradually opening up their wallets but still remain cautious on their spending. Consumers are now grappling with rising food and gasoline prices.
Minneapolis, Minnesota-based Target said that comparable-store sales for the quarter grew 2% compared with 2.8% increase registered in the prior-year quarter. The number of transactions rose marginally by 0.4%, whereas the average transaction amount climbed 1.6% in the quarter.
Gross profit at the Retail segment fell marginally by 0.1% to $4,742 million, whereas gross margin shriveled 90 basis points to 30.4%, as increase in sales were not able to fully offset 4.1% rise in cost of sales. Segment operating income dropped 4.2% to $1,062 million, whereas operating margin contracted 50 basis points to 6.8%.
The company indicated that revenue from the Credit Card segment tumbled 18.3% to $355 million. However, Target was quick to indicate that segment profit rose to $194 million in the quarter under review from $111 million delivered in the prior-year quarter helped by a decline in bad debt expenses.
Target’s credit card penetration increased 150 basis points to 5.9%, whereas debit card penetration expanded 120 basis points to 1.7% during the quarter. Total store REDcard penetration climbed to 7.6% from 4.9% in the year-ago quarter.
Management indicated that Target’s P-fresh remodel program and 5% REDcard Rewards program will help sustain sales momentum, continue to drive traffic and enhanced customer shopping experience.
Other Financial Details
During the quarter, Target repurchased about 15.4 million shares at a price of $53.32 per share, aggregating $819 million.
The company ended the quarter with cash and cash equivalents of $1,474 million, total unsecured debt and other borrowings of $11,764 million and shareholders’ equity of $15,230 million.
Target currently, operates 1,755 stores in 49 states, of which 953 are general merchandise stores, 550 are expanded grocery assortment and 252 are SuperTarget stores.
Our View
Target’s efficient marketing, multi-channel strategy, product innovation, compelling pricing strategy and new merchandise assortments, should help drive comparable-store sales and operating margins in the long term. We expect the company to gain market share, and believe that more focus on consumable items should boost sales and earnings in a sluggish consumer environment.
Target now tends to focus more on store renovations and enhancing store sales productivity, introducing smaller format stores, and eyeing opportunities to open stores in the international markets.
The greater concentration of Target’s revenue generating capability in a few regions of the United States, poses a competitive threat, compared to Wal-Mart Stores Inc. (WMT) and Costco Wholesale Corporation (COST), who are geographically more diversified and more resourceful.
Consequently, we prefer to have a long-term Neutral rating on the stock. Moreover, Target holds a Zacks #3 Rank, which translates into a short-term Hold rating.
Originally Posted Here: Target Posts Positive Surprise
E*TRADE Prices Senior Notes
On Monday, E*TRADE Financial Corporation (ETFC) announced that it has priced its $435 million total principal amount of senior notes at par due in 2016. The notes will bear annual interest of 6.75%.
The proceeds from the offering will be used to redeem its entire outstanding 7.375% Senior Notes worth $414.7 million aggregate principal amount due in 2013. The offering is expected to be closed on May 19, 2011, subject to the satisfaction of customary closing conditions. The payment also includes the related redemption premiums, accrued interest and associated fees and expenses.
J.P. Morgan Securities LLC, a division of JPMorgan Chase & Co. (JPM) is acting as a joint book-running manager for the offering.
Further, E*TRADE has in its pipeline $243 million of 7.875% notes maturing in 2015 and $930 million of 12.5% notes maturing in 2017.
As of March 2011, E*TRADE’s corporate debt amounted to $2 billion. The company’s cash position showed a balance of $1.9 billion as of March 31, 2011.
The latest capital raising initiative will help the company to reduce its total debt burden to a considerable extent. Further, this capital raising will help E*TRADE to enhance its capital ratios and therefore pursue growth and acquisition opportunities.
On May 16, E*TRADE released its Monthly Activity Report for April 2011, recording a sequential as well as year-over-year decline in average U.S. trades. For the month of April 2011, Daily Average Revenue Trades (DARTs) were 160,907, down 4% sequentially and 11% year over year. Broker performance is generally measured through DARTs. DARTs represent a number of trades from which brokers can expect commissions or fees.
Earnings Recap
In April, E*TRADE reported first-quarter 2011 net income of 16 cents per share, ahead of the Zacks Consensus Estimate of 12 cents, on the back of operating net revenue, strong brokerage business, decrease in provision for loan losses and improved expense management. The income also compares favorably with loss of 11 cents and 25 cents per share in the prior quarter and prior-year quarter, respectively.
Our Take
E*TRADE’sinitiatives to reduce balance sheet risk are encouraging, but it will add near-term pressure on interest margin. Though the company’s capital position and restructuring initiatives are promising, increasing operating expenses can have an adverse impact on the bottom line.
E*TRADE currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. Also, considering the fundamentals, we maintain a long-term ‘Neutral’ recommendation on the stock
The proceeds from the offering will be used to redeem its entire outstanding 7.375% Senior Notes worth $414.7 million aggregate principal amount due in 2013. The offering is expected to be closed on May 19, 2011, subject to the satisfaction of customary closing conditions. The payment also includes the related redemption premiums, accrued interest and associated fees and expenses.
J.P. Morgan Securities LLC, a division of JPMorgan Chase & Co. (JPM) is acting as a joint book-running manager for the offering.
Further, E*TRADE has in its pipeline $243 million of 7.875% notes maturing in 2015 and $930 million of 12.5% notes maturing in 2017.
As of March 2011, E*TRADE’s corporate debt amounted to $2 billion. The company’s cash position showed a balance of $1.9 billion as of March 31, 2011.
The latest capital raising initiative will help the company to reduce its total debt burden to a considerable extent. Further, this capital raising will help E*TRADE to enhance its capital ratios and therefore pursue growth and acquisition opportunities.
On May 16, E*TRADE released its Monthly Activity Report for April 2011, recording a sequential as well as year-over-year decline in average U.S. trades. For the month of April 2011, Daily Average Revenue Trades (DARTs) were 160,907, down 4% sequentially and 11% year over year. Broker performance is generally measured through DARTs. DARTs represent a number of trades from which brokers can expect commissions or fees.
Earnings Recap
In April, E*TRADE reported first-quarter 2011 net income of 16 cents per share, ahead of the Zacks Consensus Estimate of 12 cents, on the back of operating net revenue, strong brokerage business, decrease in provision for loan losses and improved expense management. The income also compares favorably with loss of 11 cents and 25 cents per share in the prior quarter and prior-year quarter, respectively.
Our Take
E*TRADE’sinitiatives to reduce balance sheet risk are encouraging, but it will add near-term pressure on interest margin. Though the company’s capital position and restructuring initiatives are promising, increasing operating expenses can have an adverse impact on the bottom line.
E*TRADE currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. Also, considering the fundamentals, we maintain a long-term ‘Neutral’ recommendation on the stock
Top 5 Best Performing Healthcare Mutual Funds - Best Performing Funds Year To Date http://ping.fm/BtvY9
Tuesday, May 17, 2011
Monday, May 16, 2011
Top 5 Small Cap Mutual Funds
Investors looking to mop up handsome gains over a short run often invest in small cap funds. Though riskier in character than other fund categories, these funds have the ability to deliver appreciably higher returns due to two primary reasons. Firstly, they generate high volumes of sales in a booming market, leading to a rise in prices. In addition, research has shown that smaller firms reinvest their profits back into their business. This reassures shareholders of better performance over the long term.
Below we will share with you 5 top rated small-cap mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
Fidelity Advisor Small Cap Growth A (FCAGX) seeks capital growth. The majority of the fund’s assets are invested in small companies. It focuses on acquiring common stocks and purchases both domestic and foreign securities. The small-cap mutual fund returned 25.91% over the last one year period.
The small-cap mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.34% compared to a category average of 1.52%.
JHancock Small Cap Equity A (SPVAX) invests a large proportion of its assets in small companies. The market capitalization of these companies must be identical to firms which are part of the Russell 2000 index. Not more than 15% of its assets may be utilized to purchase foreign securities or bonds with relatively low ratings. This small-cap mutual fund has a ten year annualized return of 3.98%.
Robert P. Shea is the fund manager and he has managed this small-cap mutual fund since 2009.
Scout Small Cap (UMBHX) seeks capital appreciation over the long term. The fund invests at least 80% of its assets in small-cap companies. It primarily invests in domestic equity securities, focusing on common stocks. The small-cap mutual fund returned 29.6% over the last one year period.
The small-cap mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.06% compared to a category average of 1.52%.
Federated MDT Small Cap Growth A (QASGX) invests a large share of its assets in domestic small cap companies. It focuses on acquiring common stock and invests in firms which are identical to those which are part of the Russell 2000 growth index. This small-cap mutual fund has a three year annualized return of 2.93%.
As of March 2011, this small-cap mutual fund held 150 issues, with 2.00% of its total assets invested in TIBCO Software, Inc.
Eagle Small Cap Growth A (HRSCX) seeks capital growth over the long term. The fund invests the majority of its assets in small-cap companies. These firms must be within the market cap range of the Russell 2000 index for the last twelve months. This small-cap mutual fund returned 36.35% over the last one year period.
The fund manager is Bert Boksen and he has managed this small-cap mutual fund since 1993.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank
Originally Posted Here: Top 5 Small Cap Mutual Funds
Below we will share with you 5 top rated small-cap mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
Fidelity Advisor Small Cap Growth A (FCAGX) seeks capital growth. The majority of the fund’s assets are invested in small companies. It focuses on acquiring common stocks and purchases both domestic and foreign securities. The small-cap mutual fund returned 25.91% over the last one year period.
The small-cap mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.34% compared to a category average of 1.52%.
JHancock Small Cap Equity A (SPVAX) invests a large proportion of its assets in small companies. The market capitalization of these companies must be identical to firms which are part of the Russell 2000 index. Not more than 15% of its assets may be utilized to purchase foreign securities or bonds with relatively low ratings. This small-cap mutual fund has a ten year annualized return of 3.98%.
Robert P. Shea is the fund manager and he has managed this small-cap mutual fund since 2009.
Scout Small Cap (UMBHX) seeks capital appreciation over the long term. The fund invests at least 80% of its assets in small-cap companies. It primarily invests in domestic equity securities, focusing on common stocks. The small-cap mutual fund returned 29.6% over the last one year period.
The small-cap mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.06% compared to a category average of 1.52%.
Federated MDT Small Cap Growth A (QASGX) invests a large share of its assets in domestic small cap companies. It focuses on acquiring common stock and invests in firms which are identical to those which are part of the Russell 2000 growth index. This small-cap mutual fund has a three year annualized return of 2.93%.
As of March 2011, this small-cap mutual fund held 150 issues, with 2.00% of its total assets invested in TIBCO Software, Inc.
Eagle Small Cap Growth A (HRSCX) seeks capital growth over the long term. The fund invests the majority of its assets in small-cap companies. These firms must be within the market cap range of the Russell 2000 index for the last twelve months. This small-cap mutual fund returned 36.35% over the last one year period.
The fund manager is Bert Boksen and he has managed this small-cap mutual fund since 1993.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank
Originally Posted Here: Top 5 Small Cap Mutual Funds
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