For Immediate Release
Chicago, IL – April 20, 2017 –Zacks Equity Research highlights Inogen (NASDAQ: INGN – Free Report ) as the Bull of the Day, Avis Budget Group (NASDAQ: CAR – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Qualcomm (NASDAQ: QCOM – Free Report ), American Express (NYSE: AXP – Free Report ) and CSX Corp. (NASDAQ: CSX – Free Report ).
Here is a synopsis of all five stocks:
Bull of the Day :
It looks like the market is going to have to wait for a bill to “Repeal and replace” Obamacare. Regardless of what side of the political isle you find yourself on, it’s tough to discount the impact of such an event on stocks in the medical business. This is a varied business, with pockets that are more well insulated to “Repeal and replace” risks than others. One of the more insulated areas of this market are the medical device companies. When I say more insulated, I mean when compared to drug makers or insurers.
One such company is today’s Bull of the DayInogen (NASDAQ: INGN – Free Report ). Inogen, Inc. is a medical technology company. It offers oxygen concentrator, cart, carry bags, backpacks, external battery chargers and universal power supply for obstructive pulmonary disease patients. The Company's products include Inogen One G3 and Inogen One G2. It sells its products in the United States and internationally. Inogen, Inc. is headquartered in Goleta, California.
The stock is a Zacks Rank #1 (Strong Buy) stock right now with a Growth Style Score of A. The major reason for the favorable Zacks Rank is the recent bullish behavior from analysts covering the stock. Four analysts have increased their estimates for the current year while four have also increased their EPS estimates for next year. The bullish behavior has pushed up our Zacks Consensus Estimate from 78 cents or 98 cents for the current year and has inflated next year’s number from $1.02 to $1.18.
Shares of INGN have outperformed the Medical Instruments Industry YTD, with most of that outperformance coming in the last month and a half. INGN is up 14.8% so far this year while the industry is up only 4.7%. To put that into perspective, the S&P 500 is up 5.5% on the year. Currently, the medical device industry ranks in the Bottom 44% of our Zacks Industry Rank.
Bear of the Day :
Market forces can move against you fast. Large, swift moving global trends can make or break a business. Think of how traditional newspaper giants were displaced by online media companies in short order. One company that needs to adapt to the changing environment or go the way of the Dodo is today’s Bear of the Day Avis Budget Group (NASDAQ:CAR – Free Report ).
Avis Budget Group, Inc. is a leading provider of vehicle rental services, with operations in more than seventy countries. Through its Avis and Budget brands, the company is the largest general-use vehicle rental company in each of North America, Australia, New Zealand and certain other regions.
The stock is a Zacks Rank #5 (Strong Sell) right now with a Momentum Style Score of F. The major reason for the unfavorable Zacks Rank is the recent bearish behavior from analysts covering the stock. Two analysts have decreased their estimates for the current year while two have also decreased their earnings estimates for next year. The bearish behavior has pushed down our Zacks Consensus Estimate from $3.49 to $3.24 for the current year and has deflated next year’s number from $3.98 to $3.61.
Shares of CAR have underperformed the Business Services industry YTD, with most of that underperformance coming in the last month and a half. CAR is off 20% so far this year while the industry is down 7%.To put that into perspective, the S&P 500 is up 5.5% on the year. The Business Services Industry ranks in the Bottom 15% of our Zacks Industry Rank.
Q1 Earnings Parade Continues: QCOM, AXP, CSX
Among a slew of new Q1 earnings reports after the bell today, we focus on a few of the biggest firms in their respective industries: Qualcomm (NASDAQ: QCOM – Free Report ), American Express (NYSE: AXP – Free Report ) and CSX Corp. (NASDAQ: CSX – Free Report ) are among those who've hit the tape this afternoon with new earnings, sales and details.
Qualcomm, which has endured a precipitous fall in share price since the beginning of the year, nevertheless posted positive surprises in both earnings and sales for Q1: earnings of per share (accounting for stock-based compensation and other BNRI) topped the $1.05 per share expected. Revenues of $5.99 billion in Q1 easily beat the Zacks consensus estimate of $5.88 billion. Guidance for Q2 was within the expected range on both the top and bottom.
AmEx, although seeing its second yearly drop in revenues, managed to top estimates on both the top and bottom lines. $1.34 per share beat the Zacks consensus by 6 cents, while revenues of $7.89 billion strongly bested the $7.72 billion expected. This earnings beat is now par for the course at AmEx lately: the average positive surprise over the past 4 quarters is 9.5%.
CSX Corp. put up a strong beat on both earnings and sales for the quarter. 51 cents per share was well past the 43 cents anticipated, and $2.87 billion in revenues well outpaced the $2.73 billion expected. The first earnings report under the tenure of new CEO Hunter Harrison has gone quite swimmingly, even though CSX has posted strong earnings beat over the past several quarters.
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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
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Inogen, Inc (INGN): Free Stock Analysis Report
Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
American Express Company (AXP): Free Stock Analysis Report
CSX Corporation (CSX): Free Stock Analysis Report
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