For Immediate Release
Here is a synopsis of all five stocks:
Bull of the Day:
McKesson (MCK-Free Report) recently delivered the coveted "triple play" in its latest earnings report:
- A positive earnings surprise
- A positive revenue surprise, and
- Increased guidance from management
McKesson Corporation is primarily a distributor and wholesaler of pharmaceutical products. The company distributes pharmaceuticals, health care supplies and consumer health products in North America.
McKesson reported better-than-expected results for the second quarter of its fiscal 2014 on October 24. Adjusted earnings per share came in at $2.27, well ahead of the Zacks Consensus Estimate of $2.03. It was a 19% increase over the same quarter last year.
Revenue rose 11% year-over-year to $32.954 billion, beating the consensus of $32.371 billion. Its largest segment, Distribution Solutions, saw revenues climb 11%, driven mainly by strong growth in U.S. pharmaceutical direct distribution and services revenues due to market growth, business mix and one additional sales day.
Income from continuing operating rose 20% year-over-year as the operating margin expanded from 1.5% to 2.4%.
Bear of the Day:
QlikTech (QLIK-Free Report) delivered disappointing third quarter results on October 24. The company missed on both the top and bottom lines, prompting a flurry of negative estimate revisions from analysts.
It is currently a Zacks Rank #5 (Strong Sell).
While shares of QlikTech have taken a beating since the Q3 report, the stock still doesn't look cheap given the big drop in consensus estimates. Investors should wait for earnings momentum to turn around before jumping in.
QlikTech develops and sells the QlikView Business Discovery platform, or QlikView. This software is used for business intelligence (:BI) and data analysis.
QlikTech reported disappointing third quarter results on October 24. Adjusted EPS (which includes stock-based compensation) came in at a loss of 5 cents, below the Zacks Consensus Estimate calling for a loss of 2 cents.
Total revenue rose 21% to $104.1 million, but this was well below the consensus of $108.0 million. The company experienced solid growth in the Americas, but sales were weaker than expected in Europe and Asia Pacific.
Stock-based compensation expense rose 56% year-over-year to $8.6 million. If you exclude this, EPS actually came in ahead of consensus, but this was due in part to a large tax benefit.
Morgan Stanley to Buy Stake in Mitsubishi
According to Bloomberg, Morgan Stanley (MS-Free Report) is set to acquire a 30% stake in Mitsubishi UFJ Financial Group, Inc. (MTU-Free Report) wealth-management business in Japan. The deal will expectedly be complete early next year.
On closure of the deal, Mitsubishi UFJ will continue to run the business, while Morgan Stanley will be able to offer a wide range of research and investment products to the Japanese clientele. Mitsubishi’s wealth-management unit in Japan caters to wealthy clients and is an attractive acquisition for Morgan Stanley.
With Asia emerging as a lucrative business market for foreign companies, Morgan Stanley is keen to tap the growth opportunities of the Japanese economy. Earlier, in 2010, Morgan Stanley and Mitsubishi had set up two investment-banking ventures in Japan.
Mitsubishi’s wealth-management business was previously a joint venture (:JV) between Mitsubishi UFJ and Bank of America’s (BAC-Free Report) Merrill Lynch brokerage unit. However, in Dec 2012, Mitsubishi purchased the remaining 49% stake in the JV.
The latest deal by Morgan Stanley strengthens its ties with Mitsubishi. Mitsubishi UFJ, which presently owns about 22% stake in Morgan Stanley, had invested $9 billion in the U.S. bank at the time of the 2008 economic crisis.
In the backdrop of a tepid economic recovery in the U.S coupled with stringent regulations and the Eurozone crisis, Asia has been attracting corporate companies. Fast growth, increased inflow of funds and investment in infrastructure to drive growth in the emerging economies of Asia favorably position these markets.
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.
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 MCK - FREE
Get the full Report on QLIK - FREE
Get the full Report on MS - FREE
Get the full Report on MTU - FREE
Get the full Report on BAC - 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.
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Read the analyst report on MCK
Read the analyst report on QLIK
Read the analyst report on MS
Read the analyst report on MTU
Read the analyst report on BAC
Zacks Investment Research
- Personal Investing Ideas & Strategies
- Morgan Stanley
- Bank of America