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Avon, Terex, Phillips 66, ConocoPhillips and Cheniere Energy Partners highlighted as Zacks Bull and Bear of the Day

Zacks Equity Research

For Immediate Release

Chicago, IL – June 24, 2013 – Zacks Equity Research highlights Avon (AVP-Free Report) as the Bull of the Day and Terex Corporation (TEX-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Phillips 66 (PSX-Free Report), ConocoPhillips (COP-Free Report) and Cheniere Energy Partners LP (CQP-Free Report).

Here is a synopsis of all five stocks:

Bull of the Day:

With growing demand for its products and improved cost management, Avon (AVP-Free Report) seems to be in a position to deliver decent earnings growth.

Further, with a solid outlook for the industry, this Zacks Rank #1 (Strong Buy) beauty products company looks quite attractive as of now.

Avon is a leading global beauty company, with nearly $11 billion in annual revenue. The company is the world's largest direct seller with more than 6 million active independent sales representatives.

Avon products are available in over 100 countries, and the products include color cosmetics, skincare, fragrance, fashion and home products, under brand names like Avon Color, ANEW, Skin-So-Soft and Advance Techniques.

Avon posted first-quarter adjusted earnings of $0.26 per share on April 30, easily crushing the Zacks Consensus Estimate of $0.14 per share, and increasing more than twice from the $0.10 per share in the prior-year quarter.

Bear of the Day:

While this company may get back on track in the longer-term, there are too many near-term challenges. In view of the cloudy outlook, investors should avoid this Zacks Rank # 5 (Strong Sell) stock as of now.

Terex Corporation (TEX-Free Report) is a global manufacturer of a broad range of equipment for construction, infrastructure, mining, shipping, transportation, refining, energy, utility and manufacturing industries.

Terex reports in five business segments: Aerial Work Platforms; Construction; Cranes; Material Handling & Port Solutions; and Materials Processing.

The company also offers financial products and services through Terex Financial Services.

On April 24, TEX reported its first quarter fiscal 2013 results.  Adjusted earnings came in at $0.23 per share, down 21% from $0.29 earned in the year-ago quarter. The company’s earnings fell short of the Zacks Consensus Estimate of $0.28 as well. Net sales for the quarter were $1,723.1 million, down 5.3% from the first quarter of 2012.

Additional content:

Phillips 66 Upgraded to Buy

Zacks Investment Research upgraded oil refiner, Phillips 66 (PSX-Free Report), to a Zacks Rank #2 (Buy).

Why the Upgrade?

The operating environment and growth prospects seem bright for Phillips, as reflected by the rising earnings estimates for this company. Over the last 60 days, the Zacks Consensus Estimate for 2013 rose 3.6% to $8.09 per share, as most of the estimates (10 out of 12 estimates) were revised higher.

The momentum has been strong since Phillips released its first-quarter earnings results on May 1. Adjusted earnings per share came in at $2.19, exceeding the Zacks Consensus Estimate of $1.86 by 17.7% and improving 82.5% from $1.20 a year ago. The outperformance was mainly backed by strong margins from chemical and refining units.

With respect to the earnings trend, Phillips delivered positive earnings surprises in the last 5 quarters with an average beat of 24.6%. The long-term expected earnings growth projections of 6.4%, is also fairly impressive.  

Phillips, an independent publicly traded company, was formed after the spin-off of the refining/sales business of ConocoPhillips (COP
-Free Report) in May 2012, has a good capital deployment policy through share repurchase and payment of dividends. During the first quarter of 2013, the company returned $576 million to shareholders through $194 million in dividend payments and $382 million in share repurchases. The dividend payment during this quarter represents an increase of 23.6% as compared to $157 million paid in the last quarter.

Other Stocks to Consider

There are certain other firms in the energy sector that are worth considering. Cheniere Energy Partners LP (CQP
-Free Report) carries a Zacks Rank #1 (Strong Buy).

Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

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