U.S. Markets closed

The Zacks Analyst Blog Highlights: Intel, Jarden, Micron Technology, Lithia Motors and Chubb

Zacks Equity Research

For Immediate Release
Chicago, IL – October 15, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Intel Corp . ( INTC- Free Report), Jarden Corp. ( JAH- Free Report), Micron Technology Inc. ( MU- Free Report), Lithia Motors Inc. ( LAD- Free Report) and The Chubb Corp. ( CB- Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Monday’s Analyst Blog:

Will Intel (INTC) Beat Earnings Estimates?

Intel Corp . ( INTC- Free Report) is set to report third-quarter 2013 results on Oct 15. Last quarter, it posted a 3% negative surprise. Let’s see how things are shaping up for this announcement.

Growth Factors This Past Quarter

The company’s second-quarter earnings were below the Zacks Consensus Estimate by a penny. Revenues were up sequentially but down from the year-ago quarter. Weaker-than-expected PC demand stemming from tablet cannibalization and restrained consumer buying due to tighter budgets continued to impact results in the last quarter.

The second quarter was strong for Intel in terms of sequential margin growth. This was mainly attributable to higher volumes and qualification of Haswell products for sale.

Earnings Whispers?

Our proven model does not conclusively show that Intel will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 53 cents. Hence, the difference is 0.00%.

Zacks Rank #3 (Hold): Intel’s Zacks Rank #3 (Hold) when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

You could consider other stocks with a positive earnings ESP and Zacks Rank #1, 2 or 3 such as:
Jarden Corp. ( JAH- Free Report), with Earnings ESP of +1.00% and a Zacks Rank #1 (Strong Buy).
Micron Technology Inc. ( MU- Free Report), with Earnings ESP of +4.35% and a Zacks Rank #1 (Strong Buy).

Lithia Motors Inc. ( LAD- Free Report), with Earnings ESP of +2.73% and a Zacks Rank #2 (Buy).

Chubb Stays Outperform
We are reiterating our Outperform recommendation on The Chubb Corp. ( CB- Free Report), reflecting our continued optimism about the company’s growth prospects. Chubb carries a Zacks Rank #2 (Buy)
Why reiteration?
Chubb boasts of a diversified product profile and has a niche market presence in the property and casualty industry.
Chubb’s Commercial insurance segment has been consistently reporting favorable earnings results. The segment has been witnessing low-single-digits increase in average renewal rates over the past several quarters. Retention ratio stands at a stable level. 
Chubb’s Personal Insurance segment is also witnessing a gradual market improvement. The segment has been witnessing an increase in net premium written from the past several quarters, led by strong premium increases from international business
Chubb’s international business is also performing strongly to very adequately support its future growth.
Strong capital management witnessed by regular share repurchases and a continuous dividend increase for the past several years makes the stock a favorite among investors. 
However, exposure to cat losses and low interest rate environment are some of the headwinds.
Chubb has been also witnessing rising earnings estimates. Over the last 30 days, the Zacks Consensus Estimate for 2013 moved up by 2.3% to $7.56 as 6 of the 12 estimates moved north. The same for 2014 rose 0.3% to $7.26 as 1of 16 estimates were raised over the same time frame. The expected long term earnings growth is 10.5%. 

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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 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.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on INTC - FREE
Get the full Report on JAH - FREE
Get the full Report on MU - FREE
Get the full Report on LAD - FREE
Get the full Report on CB - 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
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on INTC

Read the analyst report on JAH

Read the analyst report on MU

Read the analyst report on LAD

Read the analyst report on CB

Zacks Investment Research