The Zacks Analyst Blog Highlights: Time Warner, Groupon, Skullcandy and Tyson Foods - Press Releases
For Immediate Release
Chicago, IL – April 28, 2015 – 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 Time Warner Inc. (TWX), Groupon, Inc. (GRPN), Skullcandy, Inc. (SKUL) and Tyson Foods, Inc. (TSN).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
Will Time Warner Initiatives Drive Q1 Earnings Beat?
We expect Time Warner Inc. (TWX), a media and entertainment company, to beat expectations when it reports first-quarter 2015 results on Apr 29. In the last quarter, the company had posted a positive earnings surprise of 4.3%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Time Warner is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Time Warner has the right combination of the two key components.
Zacks ESP: Time Warner has an Earnings ESP of +0.92%. This is because the Most Accurate estimate stands at $1.10, while the Zacks Consensus Estimate is pegged at $1.09. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Time Warner currently carries a Zacks Rank #3 (Hold).
Time Warner’s Zacks Rank #3 and +0.92% Earnings ESP make us reasonably confident of a positive earnings beat.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
What's Driving the Better-than-Expected Earnings?
We believe that Time Warner’s initiatives such as foray into new markets, divestment activities and digital endeavors augur well for its operating performance in the quarter to be reported. Moreover, the company’s investments in programming, production and marketing, as well as its focus on operating and capital efficiencies, bode well. Also, Time Warner has been expanding its digital presence to provide consumers with content on more platforms and devices.
In the last four quarters, Time Warner has outperformed the Zacks Consensus Estimate by an average of 13.5%.
Stocks That Warrant a Look
Here are some other companies you may want to consider as our model shows that these have the right combination of elements:
Groupon, Inc. (GRPN) has an Earnings ESP of +50.00% and a Zacks Rank #1 (Strong Buy).
Skullcandy, Inc. (SKUL) has an Earnings ESP of +7.69% and a Zacks Rank #1.
Tyson Foods, Inc. (TSN) has an Earnings ESP of +1.35% and a Zacks Rank #2 (Buy).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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TIME WARNER INC (TWX): Free Stock Analysis Report
GROUPON INC (GRPN): Free Stock Analysis Report
SKULLCANDY INC (SKUL): Free Stock Analysis Report
TYSON FOODS A (TSN): Free Stock Analysis Report
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