Movado Group, General Motors, Companhia Energetica Minas Gerais, Companhia Brasileira de Distribuicao and Banco Bradesco highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 10, 2014– Zacks Equity Research highlights Movado Group Inc. (MOV-Free Report) as the Bull of the Day and General Motors (GM-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Companhia Energetica Minas Gerais (CIG-Free Report), Companhia Brasileira de Distribuicao (CBD-Free Report) and Banco Bradesco S.A. (BBD-Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Why all the worries about the retailers? Movado Group Inc. (MOV-Free Report) recently blew by the Zacks Consensus Estimate for the fiscal fourth quarter by 53.3% as sales rose 13.3% for the year. This Zacks Rank #1 (Strong Buy) is expected to post double digit sales growth again in fiscal 2015.
Movado Group makes watches in its Switzerland manufacturing facilities under the brands Movado, Ebel, Concord, ESQ Movado, Coach, Tommy Hilfiger, Hugo Boss, Juicy Couture, Lacoste and Scuderia Ferrari. It also operates Movado company stores in the United States.
On Mar 26, Movado reported its fiscal fourth quarter and full year 2014 results. It easily beat the Zacks Consensus by 16 cents. Earnings were $0.46 compared to the consensus of $0.30.
Sales were up 9% in the quarter to $132.3 million from $123.6 million a year ago led by growth in the licensed brand category.
Gross profit margin got a nice bump to 52.4% of sales compared with 50.7% of sales in the year ago quarter.
Bear of the Day:
You know that things aren't going a company's way when its CEO is targeted on a Saturday Night Live skit as General Motors' (GM-Free Report) Mary Barra was recently. This Zacks Rank #5 (Strong Sell) has been under fire for a faulty ignition switch problem that goes back a decade.
General Motors is one of the largest automobile companies in the world with 396 global facilities. Its brands include Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. It also has joint ventures in China.
In February 2014, GM informed federal regulators that there was a safety-related defect in its ignition switches on cars dating as far back as 2003. Initially, it recalled over a million vehicles which were still on the road but that recall has since grown to 2.6 million cars.
Analysts estimate the costs of the recall at well over $100 million.
Additional content:
Is Brazil Off Your Radar? 3 Great Stocks
There may be several negatives in the short term, but Brazil remains an important investment destination. Endowed with large natural resources and a skilled workforce it has the potential to grow its exports significantly. More importantly, Brazilian stocks are still trading at low prices and offer great value to investors.
President Rousseff could well win the reelection. But the message from markets and populace alike is loud and clear. The next administration would probably pursue a very different set of economic policies.
Below we present three Brazilian stocks which possess the potential to grow appreciably, each of which also has a good Zacks Rank.
Companhia Energetica Minas Gerais
Companhia Energetica Minas Gerais (CIG-Free Report), also known as CEMIG, is a holdings company whose primary operations are related to the electricity sector. It also has interests in the telecom and natural gas industries. The company has several subsidiaries, such as Cemig Distribuicao SA which distributes electricity.
CEMIG holds a Zacks Rank #1 (Strong Buy) and has expected earnings growth of 10.60%. The forward price-to-earnings ratios (P/E) for the current financial year (F1) is 6.57.
Companhia Brasileira de Distribuicao
Companhia Brasileira de Distribuicao (CBD-Free Report) is a retailer of food, home appliances, clothing, drugs, fuel and other products. The company utilizes various store formats to distribute its products and owns several brand names. It has four major divisions, retail, cash and carry, e-commerce and home appliances.
Currently the company holds a Zacks Rank #1 (Strong Buy) and has expected earnings growth of 18.90%. It has a P/E (F1) of 20.60.
Banco Bradesco S.A.
Our third choice is Banco Bradesco S.A. (BBD-Free Report). This Brazilian bank has a wide range of financial products and services targeted at individuals as well as corporate customers. Its range of operations includes investment and international banking. The bank operates within the country as well as in foreign nations and has several subsidiary companies.
Apart from a Zacks Rank #2 (Buy), Banco Bradesco has expected earnings growth of 10.64%. It has a P/E (F1) of 10.50.
A change in the economy looks imminent and this adds to the value proposition of Brazilian stocks. These three picks can leverage the country’s vast potential and would make good additions to your portfolios.
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