Potlatch, Kohl's, Cabela's, Synovus Financial and Capital One Financial highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 19, 2017 –Zacks Equity Research highlights Potlatch (NASDAQ: PCH – Free Report ) as the Bull of the Day, Kohl’s Corp (NYSE: KSS – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Cabela's Incorporated (NYSE: CAB – Free Report ), Synovus Financial Corp. (NYSE: SNV – Free Report ) and Capital One Financial Corp. (NYSE: COF – Free Report ).
Here is a synopsis of all five stocks:
Bull of the Day :
The US housing market continues to strengthen this year thanks mainly to improvement in the labor market and still low interest rates. This Zacks Rank #1 (Strong Buy) timber REIT is well positioned to capitalize on the housing market recovery.
About the Company
Structured as a REIT, Potlatch (NASDAQ: PCH – Free Report ) owns approximately 1.4 million acres of forestland in Alabama, Arkansas, Idaho, Minnesota and Mississippi. The company also operates five manufacturing facilities that produce lumber and panel products. They are among the top 10 lumber manufactures in the US.
Additionally, the company conducts a real estate sales and development business through its subsidiary.
Better-than-expected Results
The company reported much better-than-expected Q4 results. Their adjusted income of 35 cents per share was ahead of the Zacks Consensus Estimate of 30 cents.
"Strong performance by each of our three businesses and improved lumber prices resulted in solid earnings this year," said the CEO.
Rising Estimates
Zacks Consensus Estimates for the current and next year have increased to $1.65 and $1.83 respectively, from $1.55 and $1.82, before the results.
Bear of the Day :
Headquartered in Menomonee Falls, WI, Kohl’s Corp (NYSE: KSS – Free Report ) operates about 1,100 stores across 49 states and an e-commerce site. Falling estimates sent the stock back to a Zacks Rank #5 (Strong Sell).
Weak Guidance Reflects Rising Challenges
The retailer reported adjusted earnings of $1.44 per share for Q4, beating the Zacks Consensus Estimate of $1.32. Earnings were however down 9% year-over-year. Revenues were also in-line with the estimates, but down 2.8% year-over-year.
“Sales results were weak for the quarter in total, driven by declines in brick and mortar traffic, and offset somewhat by strength in online demand,” said the CEO.
The management expects earnings of $3.50 to $3.80 per share for fiscal 2017.
Falling Estimates
Analysts have slashed their estimates for the company after weak guidance. Zacks Consensus Estimates for the current and next fiscal year have fallen to $3.60 per share and $3.66 per share from $3.80 and $3.92 respectively, before the report.
Additional content:
Here's Why Cabela's Stock Keeps Climbing
Cabela's Incorporated’s (NYSE: CAB – Free Report ) stock price continues to climb Tuesday, up over 7%, after its once-questioned buyout by fellow outdoor retail giant Bass Pro Shops cleared a pivotal hurdle.
Cabela's announced on Monday that Bass Pro Shops will acquire the hunting mega-store company for $5 billion, or approximately $61.50 per share in cash, which marks a $500 million price cut from the initial October buyout terms. The new deal comes after regulatory red tape held up the purchase of Cabela’s banking assets.
The Sidney, Nebraska-based company owns its own bank, The World’s Foremost Bank, in order to issue Cabela’s branded credit cards. Cabela’s bank still runs on a relatively antiquated system of financing customer’s purchases by issuing CDs.
According to the new statement, Synovus Financial Corp. (NYSE: SNV – Free Report ) will now purchase Cabela's banking assets. Synovus will buy the bank’s $1.2 billion in deposits, and then Capital One Financial Corp. (NYSE:COF – Free Report ) will buy Cabela’s credit card portfolio. Capital One originally planned to buy both of Cabela’s financial assets, but regulatory issues held up the deal until Synovus stepped in.
Privately owned Bass Pro Shops owns over 90 giant retail locations in North America that focus on fishing, boating, and camping, while Cabela’s runs roughly 85 stores in the US and Canada in a similar space, but with a primary focus on hunting. Bass Pro Shops does not currently plan to change much about how Cabela’s does business.
Bass Pro Shops and Cabela’s hope the deal better positions both outdoor retail brands for the future, as online behemoths such as Amazon.com Inc. (AMZN) invade more and more retail sectors, even niche markets like fishing and hunting.
“We’re excited to announce this agreement, which allows us to look ahead with greater certainty toward the completion of our merger with Bass Pro Shops and offers a positive step forward for all parties,” Cabela’s CEO Tommy Millner said in a press release. “We look forward to completing these transactions for the benefit of our shareholders, Outfitters and outdoor enthusiasts.”
Cabela's stock price was up 7.28% to $57.60 per share in early afternoon trading on Tuesday.
The deal is expected to close in the third quarter. However, according to Cabela’s statement, it still needs approval from the company’s shareholders, and it will need a few more regulatory approvals as well.
Cabela’s is scheduled to release its first quarter financial results on May 4, but the company will not hold a call with investors or analysts until the acquisition is fully complete.
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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
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 >>.
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Potlatch Corporation (PCH): Free Stock Analysis Report
Kohl's Corporation (KSS): Free Stock Analysis Report
Cabela's Inc (CAB): Free Stock Analysis Report
Synovus Financial Corp. (SNV): Free Stock Analysis Report
Capital One Financial Corporation (COF): Free Stock Analysis Report
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