For Immediate Release
Chicago, IL – April 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 Netflix Inc. (NFLX), Facebook (FB), Amazon (AMZN), Comcast (CMCSK) and Green Mountain Coffee Roasters Inc. (GMCR).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
Netflix Reveals Viewership Data on Facebook
Shares of Netflix Inc. (NFLX) surged 4.2% to close at $173.01 on Apr 11, 2013, after the company announced that its subscribers watched 4 billion hours of streaming over the last three months. The announcement was made on the company’s chief executive Reed Hastings’ personal Facebook (FB) page.
The move was widely anticipated after Netflix announced its intentions to use Facebook and Twitter to reveal material information to investors. The company also filed with Securities and Exchange Commission (“SEC”) to that effect.
Last year, Netflix stirred a controversy when its CEO used Facebook to reveal monthly subscriber details. Netflix was charged by SEC for violating disclosure norms. However, the increasing relevance and participation of the social media in corporate communications forced SEC to revise its disclosure rules.
SEC now allows companies to make corporate announcements over social media platforms, including Facebook and Twitter, by providing relevant web addresses through notifications on their company websites and press releases.
We believe that Netflix will gain (as evident from the share price movement) from the newly amended rules in the near term. The strengthening social integration with Facebook will help it win further investor confidence going forward.
The recent surge in viewership has been primarily driven by Netflix’s engaging content, in our view. We believe that more than anything else, Netflix’s superior content will be the ultimate deciding factor in the ongoing battle for online supremacy.
Netflix’s new and exclusive content offerings are its biggest assets, which set it apart from Hulu, HBO, Amazon (AMZN) as well as the newly-launched services from cable and media companies such as Comcast (CMCSK).
We believe that an improving paid subscriber base, international expansion, diversified content portfolio and a huge video library are the positives in the near term. Moreover, Netflix’s own content delivery network, Open Connect, connects its video library directly to Internet service providers, ensuring fast data transfer to enhance customer experience. This will further improve customer engagement going forward.
Currently, Netflix has a Zacks Rank #1 (Strong Buy).
Green Mountain Upped to Strong Buy
On Apr 10, 2013, Zacks Investment Research upgraded Green Mountain Coffee Roasters Inc. (GMCR) to Zacks Rank #1 (Strong Buy).
With a stellar fiscal 2013-first quarter performance, efficient measures, strategic agreements to drive out competition following the expiry of the K-cup patents and continuous innovations, this coffee maker is an attractive investment opportunity. The stock’s return was 32.2% in the past one year. Green Mountain’s shares hit a new 52-week high of $59.30 on Apr 1.
Why the Upgrade?
Green Mountain has been witnessing rising earnings estimates on the back of strong fiscal 2013 first quarter results and upgraded guidance for fiscal 2013. Moreover, this well-known coffee maker delivered positive earnings surprises in all the last 4 quarters with an average beat of 19.2%. The long-term expected earnings growth rate for this stock is 19.4%.
The coffee maker delivered robust first quarter adjusted earnings (excluding amortization of identifiable intangibles and SEC-inquiry related expenses) of 76 cents per share that surpassed the year-ago quarter earnings of 60 cents by 27%. It also beat the Zacks Consensus Estimate of 65 cents by 17% on the back of solid top-line growth and lower interest expense.
Green Mountain is expected to deliver robust fiscal 2013-second quarter results, scheduled to report on May 8, considering its upbeat first quarter 2013 results, initiatives to rule out competition, new product roll outs, and better visibility for fiscal 2013.
For the second quarter of fiscal 2013, the company expects adjusted earnings per share in the range of 70–75 cents and sales growth in the range of 14% to 18%. The guidance reflects the company’s continuous efforts to increase brand investments and product innovations.
The company is optimistic about fiscal 2013. It raised adjusted earnings outlook to the range of $2.72 to $2.82 per share, up from the prior guidance of $2.64 to $2.74 per share. The company expects net sales growth in the range of 15% to 20% over fiscal 2012.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
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: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com
- Investment & Company Information
- Zacks Investment Research
- Green Mountain