CHICAGO, March 21, 2014 /PRNewswire/ --Zacks Equity Research highlights Harman International Industries, Inc. (NYSE:HAR-Free Report) as the Bull of the Day and Express Inc. (NYSE:EXPR-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis oneBay Inc. (Nasdaq:EBAY-Free Report), Amazon.com Inc. (Nasdaq:AMZN-Free Report) and Visa Inc. (NYSE:V-Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Harman International Industries, Inc. (NYSE:HAR-Free Report) is cashing in on the strong demand for entertainment in our cars. This Zacks Rank #1 (Strong Buy) recently raised fiscal 2014 guidance and is expected to post double digit earnings growth.
Harman manufactures infotainment and audio systems for vehicles worldwide. Its customers include the biggest names in the auto industry including BMW, Mercedes, Audi, Toyota, Chrysler, Volkswagen and GM. 25 million automobiles on the roads are now equipped with Harman audio and infotainment systems.
Consumers want to be connected at all times so infotainment remains a growing market.
Luxury vehicles were the first to get infotainment systems and it remains the most penetrated with about 50% of vehicles now sporting infotainment systems. In mainstream vehicles, the level remains at just 15% to 20% so there is opportunity. Some analysts believe that ultimately there will be 100% penetration of these systems in vehicles.
Harman already commands a large segment of the total infotainment industry with some analysts believing that it has a 25% market share.
Bear of the Day:
It was a rough holiday season for Express Inc. (NYSE:EXPR-Free Report) as promotions hit hard. This Zacks Rank #5 (Strong Sell) also disappointed the Street when it guided lower for the first quarter of 2014.
Express operates 630 men's and women's specialty apparel stores targeting 20 to 30 year olds in high-traffic shopping malls, urban neighborhoods and lifestyle centers.
On Mar 12, Express reported its fiscal fourth quarter and full year results and missed the Zacks Consensus for the second quarter in row. Earnings were $0.57 versus the Zacks Consensus of $0.59.
Heavier than planned promotions impacted both top-line and margins.
Same-store sales rose 1% whilc e-commerce was a bright spot, gaining 14% to $138.8 million.
Gross margin, however, fell 300 basis points year over year to 32%. In a positive development, inventories were lean ending the quarter and heading into spring.
Additional content:
Icahn's Latest: Float 20% of PayPal
The latest update in the ongoing cold war between billionaire activist investor Carl Icahn and eBay Inc. (Nasdaq:EBAY-Free Report) is that Icahn has advised the giant online marketplace to spin off 20% of PayPal in an Initial Public Offering (IPO). This follows his proposal of a complete spinoff of PayPal with a different management team, which was rejected by eBay.
Icahn's earlier proposal of a spinoff fell flat and he doesn't seem inclined to bow out easily. Therefore, his latest call is not a withdrawal but just a smart modification of his previous offer of separation of the two businesses. Alas, he faces a rejection yet again.
According to Icahn, eBay and PayPal's association shadows their individual market value. In comparison to companies like Amazon.com Inc. (Nasdaq:AMZN-Free Report) and Visa Inc. (NYSE:V-Free Report), eBay lags both in terms of worth and accomplishments.
Per Icahn, the proposed partial spinoff will increase the equity holder's base and help them to remain competitive in the long run, thus boosting the progress of both the companies. He also suggested that the two companies should have their individual management teams, thus eliminating the scope for any disagreement between the two businesses.
Carl Icahn owns 0.82% of eBay. The giant online marketplace turned down his proposal as it believes that there will be no additional benefit to either eBay or PayPal if Icahn's demand is met. On the other hand, the two can, in combination generate the maximum value for shareholders.
The digital payment arm, PayPal, was acquired by eBay in 2002 for $1.5 billion. Since then, it has become the giant marketplace's engine for growth and the actual reason for investors to hold shares of eBay. As more and more customers prefer online shopping nowadays, the use of this online payment service has increased. Thus, PayPal accounts for a large percentage of eBay's total revenue.
Additionally, it along with fulfillment services, enables eBay to provide a complete solution to retailers, whether brick-and-mortar or online. The unit thus drives eBay's share value.
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 the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on HAR - FREE
Get the full Report on EXPR - FREE
Get the full Report on EBAY - FREE
Get the full Report on AMZN - FREE
Get the full Report on V - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
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 assumedthat 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 andis 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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.