For Immediate Release
Chicago, IL – October 15, 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 Deckers Outdoor Corporation ( DECK- Free Report), Arris Enterprises Inc. ( ARRS- Free Report), Comcast Corp. ( CMCSA- Free Report), Time Warner Cable Inc. ( TWC- Free Report) and Google Inc. ( GOOG- Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Monday’s Analyst Blog:
Bullish on Deckers Outdoor
We upgraded our recommendation on Deckers Outdoor Corporation ( DECK- Free Report), the designer and producer of footwear and accessories, to Outperform from Neutral.
Why the Upgrade?
The challenging macroeconomic environment compelled Deckers to resort to various means for repositioning itself and keep afloat. Such measures include focusing on new product introductions, effective cost management and new store openings. This is well reflected through Deckers’ better-than-expected second-quarter 2013 bottom-line results.
The company posted a quarterly loss of 85 cents a share that fared better than the Zacks Consensus Estimate and management’s guidance due to lower operational expenses. The high note in the quarter was the 34.2% rise in eCommerce sales.
On the back of robust eCommerce sales trends, Deckers provided an improved outlook for 2013 with both revenue and earnings per share projected to increase 8%.
Following sturdy results, the analysts become more constructive on the stock’s future performance. Consequently, the Zacks Consensus Estimate for 2013 increased 2.4% to $3.80, while for 2014 it rose 2% to $4.52 per share in the last 60 days.
The earnings surprise history of this Zacks Rank #1 (Strong Buy) stock also sparks optimism about its future upbeat performance. Deckers has outperformed the Zacks Consensus Estimate in the last four quarters by an average of 44.1%.
Deckers is also expanding its footprint by targeting profitable markets. This is well evident from the company’s retail store sales that rose 29.1%, propelled by the opening of 36 new stores during the second quarter of 2013. Management is eyeing opportunities for store expansion in Asia, mainly Japan and China, and seeks to enhance the company’s presence in South Korea, Taiwan, Mongolia, Singapore and Australia.
Arris Downgraded from Outperform
We downgrade our recommendation on Arris Enterprises Inc. ( ARRS- Free Report) to Neutral based on its high level of current valuation. The stock price has soared nearly 35% in the last year and currently provides limited opportunity for above-market gain. Arris will report its third-quarter 2013 financial results on Oct 30, after the closing bell. Arris currently has a Zacks Rank #3 (Hold).
Why the Downgrade?
Arris is solely dependent on cable operators for revenues. Lack of industry diversification may result in limited business prospects. Potential shifts in industry dynamics may adversely impact cable TV service providers.
This is evident from the fact that large telecom carriers in the U.S. are increasingly expanding their high-speed fiber-based network and satellite TV providers are also upgrading their networks. Cable MSOs are gradually losing their basic video customers to low-cost satellite TV and Internet video service providers.
Customer concentration remains high for the company. In the previous quarter, the two largest cable TV operators, namely, Comcast Corp. ( CMCSA- Free Report) and Time Warner Cable Inc. ( TWC- Free Report) together accounted for 38.8% of the total revenue of Arris. Loss of any of these customers would materially impact the company’s top-line growth.
Meanwhile, the acquisition of the Home business division of Motorola mobility, a subsidiary of Google Inc. ( GOOG- Free Report), has placed Arris as the leading player in the broadband DOCSIS 3.0 CPE market. In the second quarter of 2013, the CPE segment of Arris generated $663 million of total revenue, up by a whopping 344% year over year. The company stated that 90% of its total CPE shipment was for the DOCSIS 3.0 network.
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.
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 DECK - FREE
Get the full Report on ARRS - FREE
Get the full Report on CMCSA - FREE
Get the full Report on TWC - FREE
Get the full Report on GOOG - 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
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.