For Immediate Release
Chicago, IL – September 14, 2012 – Zacks Equity Research highlights Cabela's, Inc. (CAB) as the Bull of the Day and Advance Auto Parts (AAP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Patterson Companies (PDCO), Henry Schein Inc. (HSIC) and Sirona Dental Systems (SIRO).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Cabela's, Inc. (CAB) second-quarter 2012 earnings of $0.47 per share beat the Zacks Consensus Estimate of $0.39, and surged 46.9% from the prior-year quarter. The quarter witnessed healthy revenue growth and profitability at its retail segment, improved performance at Cabela's CLUB Visa program, increased merchandise gross margin and boost in market share.
Total revenue grew 11.6% to $627.3 million, whereas merchandise gross margin expanded 70 basis points to 37.4% during the quarter. Driven by improving trends, management expects earnings to go beyond the current estimates by 1% to 3% in fiscal 2012. The company looks to enhance its retail square footage growth is focusing on its next-generation store and new Outpost format.
Moreover, the company also remains committed on alleviating bad debt risk in its credit card business. The gradual improvement in the economy has lowered delinquencies and charge-offs.
Advance Auto Parts (AAP) aims to improve its supply chain and vendor terms by pursuing an aggressive store expansion strategy. However, the sluggish economy, volatile gasoline prices and pricing are some of the challenges facing the company. AAP's profits fell 8.2% in the second quarter of 2012, missing the Zacks Consensus Estimate by $0.06 per share.
The company's revenues also dipped marginally by 1.3% due to lower store sales and lagged the Zacks Consensus Estimate of $1.48 billion. These factors have led us to downgrade our recommendation on the stock from Neutral to Underperform and set a target price of $64.00.
The stock is trading at a discount to the peer group, based on forward earnings estimates. The current P/E, which is close to the lower-end of the historical range, is at a 14% discount to the peer group for 2012.
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Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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