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Smith & Wesson, Groupon, iShares 20+ Year Treasury Bond ETF and Vanguard Long-Term Government Bond ETF highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – October 21, 2015 – Zacks Equity Research highlights Smith & Wesson (SWHC) as the Bull of the Day and Groupon (GRPN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Long-Term Government Bond ETF (VGLT)
        
Here is a synopsis of two stocks and two ETFs:
 
Bull of the Day:
 
Today’s Bull of the Day may spark a little controversy. They are a company that makes hand guns. Now I’m really not concerned with which side of the aisle anybody lands on. What I am concerned with is what side of the breakeven line my stock picks are. With this stock, I’m confident you’ll be seeing some green in the next twelve months.

Smith & Wesson (SWHC) manufactures and sells firearm products in the United States and internationally. The company operates in two segments, firearms and accessories. It offers handguns, including revolvers and pistols; long guns, such as sporting, bolt action, and single shot rifles; hunting rifles; black powder firearms; handcuffs and restraints; and firearm-related products and accessories. 

Click “FOLLOW THE AUTHOR” above for free stock picks!!! And Twitter @bartosiastics

Analysts have been bullish on the stock over the last sixty days. Two analysts raised their earnings estimates for the current quarter, current year and next year. The bullish attitude has pushed up our Zacks Consensus Estimate across the board. The most dramatic increase has been the current year and next year’s numbers. Current year consensus has jumped from $1.02 to $1.16 while next year’s numbers have gone up from $1.03 all the way to $1.28.

The recent bullish sentiment is following yet another quarterly earnings beat for Smith & Wesson. The streak the company has been on is impressive. SWHC has beat a whopping 17 quarters in a row. The last earnings beat saw earnings come in at 32 cents versus our Zacks Consensus Estimate of 22 cents. That’s coming on the heels of another 10 cent beat the previous quarter.

Bear of the Day:

So you want to be a billionaire huh? Well of course you do, who wouldn’t? For some people the recipe sounded so simple. Come up with a great idea for a website, build it out, go public and party happily ever after. But the very reason you wound up becoming so successful in such a short period of time may be the same reason for your downfall. With a website, the barrier to entry is so low that it’s easy for anyone to step in and take your cheese. It looks like that may be the story of today’s Bear of the Day, Groupon (GRPN).

Click “FOLLOW THE AUTHOR” above for free stock picks!!! And Twitter @bartosiastics

Groupon operates a shopping website which offers good and services at a discount. It’s a great way for stores, restaurants and other companies to introduce their product or service to a new audience and help spread the word about their company. Who doesn’t love getting in on a $20 hour long massage or half-price appetizers at the new local hang out? The problem though is that nothing is stopping other companies from doing the same thing Groupon does. Massdrop, LivingSocial and Saveology are three examples of competitors that have sprouted up to take market share.

Laying off 1,100 employees along with bearish analyst estimate revisions have put pressure on Groupon’s stock price. The bearish attitude has pushed down the Zacks Consensus Estimate from 4 cents for next year down to a six cents per share loss for the company. That, coupled with last quarter’s penny a share miss have Groupon stock trading all the way down at $3.64.

Shares have been tumbling all year but the big move occurred when shares broke down through the bottom end of support at $7 in early May. From there shares have spiraled out of control, hitting a 52-week low just above $3 on the September dip. Shares are currently hanging on to a thread at $3.64.

Additional content:

Buy-Ranked Treasury Bond ETFs in Focus

Global stock markets have stabilized this month after their ugliest quarterly performance in four years. S&P 500 index fell more than 8% during the third quarter, thanks mainly to China related worries. As stocks plunged, many nervous investors piled into the safety of safe haven assets, particularly Treasury bonds.

Weak economic data out of China and Europe continues to boost the appeal of safe haven assets. And a weaker-than-expected jobs report has led investors to believe that the Fed may not start raising rates this year. Further, the Fed has made it very clear that even after the first hike, the monetary policy is going to stay accommodative for quite some time.

Many investors think that bonds will see a wide-spread sell-off once the Fed starts raising rates. But they should remember that long term bonds yields are driven more by inflationary expectations than by short term Fed funds rates. And then while the growth has been picking up in the US, inflation has remained muted.  Weak inflationary expectations are good for longer term bonds.

Then while rates are low here in the US, they are much lower in the other parts of the developed world. In Europe and Japan, monetary authorities are expected to continue easing in order to fight deflationary risks. So, compared with those interest rates, US interest rates are still very attractive. A strong US dollar further makes US assets attractive to overseas investors.

There were reports recently of central banks in China, Russia, Brazil and Taiwan selling Treasury bonds and raising cash to intervene in their foreign exchange markets in order to control the decline of their currencies against the US dollar. At the same time, many private foreign buyers, US funds and some other central banks have stepped up their purchases of Treasury bonds.

Investors should consider adding some longer term Treasury bond ETFs to their portfolio for stability, diversity and income.

Learn more about two Zacks Rank #2 (Buy) long term Treasury Bond ETFs-- iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Long-Term Government Bond ETF (VGLT) on their quote pages at www.zacks.com.

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 the Analyst Blog
                                                            
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
 
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.
 
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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
 
SMITH & WESSON (SWHC): Free Stock Analysis Report
 
GROUPON INC (GRPN): Free Stock Analysis Report
 
ISHARS-20+YTB (TLT): ETF Research Reports
 
VANGD-LT GOV BD (VGLT): ETF Research Reports
 
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Zacks Investment Research