For Immediate Release
Chicago, IL – March 21, 2013 – Zacks Equity Research highlights Azz Inc (AZZ) as the Bull of the Day and Family Dollar (FDO) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Eni SpA (E), Total SA (TOT) and Statoil ASA (STO).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Azz Inc (AZZ) recently announced an accretive acquisition and the analysts love it. Yesterday, the stock moved up to a Zacks Rank #1 (Strong Buy), it is the Bull of the Day.
AZZ Inc. acquired Aquilex Specialty Repair and Overhaul in late February 2013 for approximately $250 million. Aquilex services the power generation markets through maintenance, repair and revitalization services to the nuclear and fossil fuel power generation assets, as well as the refining and industrial markets. The deal led one analyst to move earnings estimates from $2.70 to $3.10, and in the second full year of ownership the company expects to see accretion of $0.50 to $0.60.
AZZ manufactures and sells electrical equipment and components for power generation, transmission and distribution, and industrial markets. The company has two segments, electrical & industrial products (EIP), and galvanizing services (GS). The EIP segment produces specialty electrical products for the distribution of electrical power to and from generators, transformers, switching devices. The GS segment provides hot dip galvanizing to the steel fabrication industry.
Dating back to the February 2012 quarter, AZZ delivered positive earnings surprises in a strong of 3 consecutive reports. The average beat was more than 10% above the Zacks Consensus Estimate. Following the beats, the stock moved higher by an average of 10% in the session following the release.
Family Dollar (FDO) reported a negative earnings surprise at the start of the year and didn't capitalize on the Wal-Mart memo leak snafu. The stock is a Zacks Rank #4 (Sell) and is the Bear of the Day.
A mid-February email was leaked from one of the nation’s largest retailers. In the email the Wal-Mart exec noted that people were not spending at the mega store and that the company was trending the worst February in years. The thought at that time was that customers were feeling the pinch of higher taxes and higher gasoline prices. Those two headwinds for WMT could have been a big tailwind for FDO as consumers were thought to "trade down" to a lower level retailer.
Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low- and middle-income consumers. It operates a chain of approximately 7,400 general merchandise retail discount stores in 45 states. The company was founded in 1959 and is based in Matthews, North Carolina.
One look at a price chart of FDO and you can see a big drop at the start of 2013. The company posted a negative earnings surprise of 6%. That miss sent the stock lower by more than 11.5% in the session following the release.
Latest Posts on the Zacks Analyst Blog:
Eni SpA’s 9th Find Offshore Angola
Italian oil giant Eni SpA (E) has enhanced its resource base in the West Hub project with its ninth oil find in Block 15/06, offshore deepwater Angola.
Located about 150 kilometers from the coast, the probe Vandumbu 1 has produced 114 meters of net oil pay. The well reached a total depth of 4,107 meters and was drilled at a water depth of 976 meters.
Eni drilled from the sidetrack of the Vandumbu 1 well – Vandumbu 1 ST –to a depth of 3,480 meters and revealed the Lower Miocene high quality sand, 34-degrees API oil pay. Based on the data collected, Eni has estimated Vandumbu 1 ST to have a production capacity of more than 5,000 barrels of oil per day.
Eni, the operator of Block 15/06 holds a 35% interest. Other partners include SSI Fifteen Limited, Sonangol, Total SA (TOT), Falcon Oil Holding Angola SA and Statoil ASA (STO) holding 25%, 15%, 15%, 5% and 5%, respectively.
The company’s presence in Angola dates back to 1980. In 2011, the company had a net production of 102,000 barrels per day. The latest discovery further strengthens its position in the country and confirms the region as one of the core countries in Eni’s organic growth strategy.
We believe that Eni’s outlook for the upcoming months is favorable, given its 2013–2016 strategic plans to enhance production and implement steps to control costs and recover profitability. The company remains upbeat on its production growth target, expecting it to increase more than 4% per year for 2013–2016 and 3% per year until 2022.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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