The Zacks Analyst Blog Highlights: BankUnited, Agree Realty, Tractor Supply, AutoZone and Mattress Firm Holding

Zacks

For Immediate Release
 
Chicago, IL – September 25, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Agree Realty Corporation (ADC-Free Report), Tractor Supply Company (TSCO-Free Report), AutoZone, Inc. (AZO-Free Report), Mattress Firm Holding Corp. (MFRM-Free Report) and BankUnited, Inc. (BKU-Free Report)
 
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

Agree Realty Buys BJ’s Wholesale Outlet for $10.6M
 
Consistent with its portfolio expansion plans, Agree Realty Corporation (ADC-Free Report) disclosed the acquisition of Pa.-based BJ's Wholesale Club outlet for $10.6 million. The move depicts the company’s motive to strengthen its tenant base of industry leading retailers.

Notably, with this high-end buyout, Agree Realty’s year-to-date acquisition volume totals about $70 million. BJ's Wholesale Club, spanning 112,230 square feet, is positioned at Airport Road South in Allentown.

The acquisition of BJ's Wholesale Club outlet, which is serving the Airport Road South area over the past 20 years, offers Agree Realty the scope to enjoy steady revenues, going forward. Lately, Agree Realty has been on an acquisition spree. Earlier this month, the company purchased an outlet of a privately-owned American health club chain – LA Fitness – in Rochester, N.Y. for approximately $10.3 million.

Moreover, last month, Agree Realty shelled out $6 million to acquire four single tenant assets. Two of these are in Madisonville, Texas and Forest, Miss. and are leased to Tractor Supply Company (TSCO-Free Report), which commands a large chain of retail stores. Among the other two properties, one is occupied by AutoZone, Inc. (AZO-Free Report) in Sun Valley, Nev. and the other by Mattress Firm Holding Corp. (MFRM-Free Report) in Baton Rouge, La.

Such opportunistic deals are expected to help Agree Realty to add tenants to its strong tenant base and extend ties with existing tenants as well as drive earnings in the future.

Agree Realty – which specializes in the acquisition and development of single tenant properties net leased to national and regional retail companies in the U.S. – currently owns a portfolio of 128 properties in 33 states, comprising roughly 3.8 million square feet of gross leasable space.
Agree Realty, at present, carries a Zacks Rank #3 (Hold).

BankUnited Upped to Outperform
 
On Sep 19, 2013, we upgraded our long-term recommendation on BankUnited, Inc. (BKU-Free Report) to Outperform. Our decision rests on the company’s impressive second-quarter earnings. Moreover, the company is conveniently positioned to grow both organically and inorganically based on its healthy liquidity levels.

The Rationale Behind the Upgrade

On Jul 24, BankUnited reported second-quarter 2013 earnings per share of 52 cents, substantially beating the Zacks Consensus Estimate of 43 cents. Results were primarily driven by growth in net interest income and a decline in operating expenses, partially offset by lower non-interest income. Further, growth in loan and deposit balances was the tailwind for the quarter.

The Zacks Consensus Estimate for 2013 advanced 10.6% to $1.88 per share over the last 60 days. Further, for 2014, the Zacks Consensus Estimate increased 8.3% to $1.82 per share over the same time period. Hence, BankUnited currently carries a Zacks Rank #1 (Strong Buy).

BankUnited is an attractive pick for yield-seeking investors. Earlier, in Feb 2012, the company had raised its cash dividend by 21% to 17 cents. Moreover, given the company’s strong capital and balance sheet levels, it is well positioned to expand organically as well as through acquisitions. Further, management intends to set up additional branches in the New York metropolitan market through the remainder of 2013.

Robust capital deployment plans and increasing emphasis on the commercial loan portfolio will prove accretive to BankUnited’s overall growth going forward. The company is well poised from the capital perspective as well. We expect BankUnited to continue building capital with the help of its earnings in order to meet the increasingly stringent capital requirements.
 
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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 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. 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 ADC - FREE
Get the full Report on TSCO - FREE
Get the full Report on BKU - FREE
Get the full Report on MFRM - FREE
Get the full Report on AZO - 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
 
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 ADCRead the analyst report on TSCORead the analyst report on AZORead the analyst report on MFRMRead the analyst report on BKUZacks Investment Research

Rates

View Comments (0)