U.S. Markets close in 4 hrs 22 mins

Deere, Hertz Global Holdings and Canada Goose Holdings highlighted as Zacks Bull and Bear of the Day

Zacks Equity Research

For Immediate Release

Chicago, IL – June 05, 2017 –Zacks Equity Research Deere & Co (NYSE: DE – Free Report ) as the Bull of the Day, Hertz Global Holdings (NYSE: HTZ – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Canada Goose Holdings Inc. (NYSE:GOOS – Free Report ).

Here is a synopsis of all three stocks:

Bull of the Day :

A strong management team can guide a company through difficult periods and prepare the business for better times. This is what Deere & Co.’s management’s team has done. The past several years have been difficult for the agricultural business, but the team made some prudent cost cutting measures and shifted their focus towards other segments within the company. These moves have begun to bear fruit and nowDeere & Co (NYSE: DE – Free Report ) is our Zacks Bull of the Day.

This Zacks Ranked #1 (Strong Buy) company is the one world's foremost producers of agricultural equipment as well as a leading manufacturer of construction, forestry, and commercial and consumer equipment. The company, in addition, provides credit, special technology, and managed health-care products and services.

Recent Earnings

The company recently announced Q2 17 earnings where they easily beat both the Zacks consensus earnings and revenue estimates. On a year over year basis the company saw gains in net income +62%, worldwide net sales +5%, worldwide revenues +5%, and net sales of equipment operations +2.2%.

Also, due to the strong performance and expected continuation of this trend, management increased FY 17 guidance in several segments; Equipment sales +9% (was +4%), Agricultural & Turf sales +8% (was +3%), and Construction & Forestry sales +13% (was +7%).

Management’s Take

According to Samuel R. Allen, chairman and chief executive officer, " John Deere reported strong results in the second quarter as market conditions showed signs of further stabilization. We are seeing modestly higher overall demand for our products, with farm machinery sales in South America experiencing a strong recovery. Deere's performance also reflects the sound execution of our operating plans, the strength of a broad product portfolio, and the impact of our actions to develop a more agile cost structure. As a result, we have raised our forecast and are now calling for significantly higher earnings for the full year ."

Mr. Allen went on further to state, “ Deere is demonstrating a continuing ability to produce impressive results through all phases of the business cycle. This resilience illustrates our success driving improved operating efficiencies and developing a wider range of revenue sources. It also shows the impact of the company's consistent investments in advanced technology, new products and additional markets. These actions are leading to strong performance in 2017, and they reinforce our conviction that Deere is well-positioned to deliver significant value to customers and investors over the long term .”

Bear of the Day :

An unanticipated issue can cause a turnaround plan to stall or even make the plan virtually impossible to implement. This is what is happening to our Zacks Bear of the Day, Hertz Global Holdings (NYSE: HTZ – Free Report ). In January HTZ hired their third CEO in less than three years, and now the new CEO is forced to deal with higher costs for new cars combined with a lower resale value of their used cars. This new issue is causing their debt levels to skyrocket, and is pushing back their turnaround table to 2018 at the earliest.

This Zacks Ranked #5 (Strong Sell) company operates car rental business. The company's product and services consists of Hertz Gold Plus Rewards, NeverLost, Carfirmations, Mobile Wi-Fi and unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections. It operates primarily in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz Global Holdings, Inc. is based in FL, United States.

Recent Earnings Results

In the company’s most recent earnings report, HTZ missed the Zacks consensus earnings estimate for the third consecutive quarter, but they did beat the Zacks consensus revenue estimate after missing the previous two quarters. The company reported year over year losses in the following; U.S. Rental Car segment, total revenues fell -4%, with income from continuing operations before income taxes dropping by 500%. On the International Rental Car Segment, total revenues were down -5%, and income from continuing operations before income taxes were down 400%.

Management’s Take

According to Kathryn Marinello, President and CEO, “As previously outlined, we are executing on a turnaround plan that puts our customers at the center of everything we do. Our goal is to strengthen the business to drive predictable, sustainable growth over the long term. While we are mindful of today's headwinds related to used car residual values, our commitment to investing in the business remains steadfast. In particular, we are placing significant emphasis on fleet quality, the customer experience, brand development and systems transformation. These investments are critical to rebuilding our position as a leader in the global rental car market. While our performance doesn't yet reflect our investments and may continue to be uneven, we are seeing signs of progress."

Additional content:

Canada Goose (GOOS) Shares Pop After 1st Earnings Post-IPO

On Friday, shares of luxury parka makerCanada Goose Holdings Inc. (NYSE: GOOS – Free Report ) are popping, up over 9% to $20.41 per share after the company reported a smaller-than-expected fourth-quarter loss.

For Q4, earnings were a loss of 12 cents per share (this number excludes 6 cents from non-recurring items), beating the Zacks Consensus Estimate of a loss of 15 cents per share. Adjusted net loss was $14.7 million for the quarter.

Total revenues increased 21.9% to $38.6 million, also beating our consensus estimate of $23.1 million. Gross margin expanded 950 basis points to 54.4%.

During the quarter, Canada Goose opened its first retail stores in Toronto and New York, in addition to e-commerce sites in France and the United Kingdom. Speaking of it online sales, Canada Goose’s direct-to-consumer (DTC) revenue, which includes e-commerce sales and company-owned retail store sales, increased C$115.2 million from $33 million in fiscal 2016.

“I believe our strong performance in fiscal 2017 clearly demonstrates the tremendous power of the Canada Goose brand and continued demand for our best-in-class products around the globe, as well as our ability to deliver products of the highest quality, craftsmanship and functionality,” said Dani Reiss, President and CEO.

Looking ahead at fiscal 2018, Canada Goose expects revenue growth on a percentage basis in the mid-to-high teens. The company also expects adjusted earnings per share to grow an average of over 25% per year from fiscal 2016 through fiscal 2018.

Canada Goose, known for $900 parkas with fur-trimmed hoods, hit the market with a bang back in March, and its IPO was a huge win for the company.

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.

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 analyst 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.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on DE - FREE

Get the full Report on HTZ - FREE

Get the full Report on GOOS - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Click for Free Deere & Company (DE) Stock Analysis Report >>
 
Click for Free Hertz Global Holdings, Inc (HTZ) Stock Analysis Report >>
 
Click for Free Canada Goose Holdings Inc. (GOOS) Stock Analysis Report >>
 
To read this article on Zacks.com click here.
 
Zacks Investment Research