For Immediate Release
Chicago, IL –August 27, 2010 – Zacks Equity Research highlights: Ryder System (R) as the Bull of the Day and J.C. Penney (JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wal-Mart (WMT), Big Lots (BIG) and PetroChina Co. Ltd. (PTR).
Here is a synopsis of all five stocks:
We are upgrading our rating to Outperform on Ryder System (R) following its second-quarter earnings. Second-quarter earnings surpassed the Zacks Consensus Estimate on stronger automotive volume, improved commercial rental demand and strong used vehicle sales.
Ryder is planning for a better relative freight pricing market and more freight opportunities in 2010. With an improvement in market conditions, the company has ample balance sheet strength to support its capital spending. Ryder is aggressively evaluating its pipeline of acquisition candidates along with fleet expansion and spending on equipment.
Further, the company remains committed to its shareholders via dividends and share repurchase. However, Ryder faces a prolonged freight recession on its lease business, which may impact near-term earnings.
We believe that J.C. Penney (JCP) stock will remain under pressure in the near term. Despite the introduction of new product lines, its sales performance has not been impressive.
J. C. Penney hinted that the discontinuation of the publishing of Big Book catalogs in November 2009 has been adversely impacting sales. We expect a negative sentiment among investors, following the sales results for the second-quarter 2010 that breached its own guidance.
Moreover, the company's sales of home products have remained sluggish for the last few years. This may weigh upon the company's overall results. However, the Sephora concept inspires confidence but a consistent improvement in the stock has yet to be witnessed.
Latest Posts on the Zacks Analyst Blog:
Initial Claims Down, Extended Claims Up
I would argue that the rise in the total number of people getting unemployment benefits is a good thing. Not because it is good to have so many people unemployed, but that it is better that people are getting benefits rather than being left with no income at all. Unemployment generally (it varies a bit by state) pays 60% of what people were earning before they got laid off, up to a cap of about $400 per week, or $21,000 per year.
If we assume that the average benefit is $300 per week, then it means that $2.6 billion a month more is being pumped into the economy. It is going to people who will spend that money right away. That means more business for Wal-Mart (WMT) and Big Lots (BIG).
It also means that these people are able to continue paying their mortgage or rent and don’t become homeless. It means that their electricity is not shut off. It means that they still can have an internet connection from which they can continue looking for work.
It is not just the humanitarian benefit of making sure that our fellow citizens do not slip into third-world style poverty, it is that the money gets pumped into the economy and as it is, it keeps other people working. It is for that reason that the non-partisan CBO has found that extended unemployment benefits is among the most effective programs around at stimulating the economy on a job saved per dollar spent basis.
...But Not as Good as Finding a Job
Clearly, though, getting an unemployment check is not a good substitute for actually having a job. Being on unemployment means a minimum 40% cut in your income, and for most people much more than that. People don’t know how long they are going to be out of work.
PetroChina First Half Profit Rises
Chinese energy giant PetroChina Co. Ltd. (PTR)announced its first half 2010 earnings of RMB 65.3 billion or RMB 0.36 per diluted share, compared with RMB 50.5 billion or RMB 0.28 per diluted share in the year-earlier period. Earnings per ADR came in at $5.29 (Exchange rate: US$1.00 = RMB 6.8, 1 ADR = 100 shares).
The positive comparisons can be primarily attributable to soaring oil prices and stronger volumes that more than offset weak refining margins. PetroChina’s total revenue for the six months totaled RMB 684.8 billion, an increase of 64.9% from the year-earlier period.
Upstream
The world's second-most valuable oil and gas producer posted strong upstream segment results on the back of higher realized prices and production. Crude oil output rose 1.7% from the year-ago period to 424.7 million barrels (MMBbl), while marketable natural gas output was up 12.9% to 1,153.1 billion cubic feet (Bcf).
The average realized crude oil price during the first six months of 2010 was $72.42 per barrel, representing an increase of 70.6% from $42.46 per barrel in the corresponding period of the previous year. This pushed up the upstream (or exploration & production) segment profit by nearly 95% to RMB 73.4 billion.
Downstream
PetroChina’s refinery division processed 439.1 MMBbl during the six-month period, up from 389.3 MMBbl in 2009. The company produced 2.762 million tons of synthetic resin in the period (a rise of 36.1% year-over-year), besides manufacturing 1.809 million tons of ethylene (up 36.8% from the first half of 2009). It also produced 38.382 million tons of gasoline, diesel and kerosene during the period, as against 34.550 million tons a year earlier.
The company’s ‘Refining & Chemicals’ business experienced a 68.3% decline in its operating profit (from RMB 17.2 billion in the first half of 2009 to RMB 5.5 billion in the current year period), as refining margins began to fall due to the rise in crude oil prices.
In marketing operations, the group sold 59.52 million tons of gasoline, diesel and kerosene, an increase of 26.6%.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7159.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 at http://at.zacks.com/?id=5509.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
BIG LOTS INC (BIG): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis Report
PETROCHINA ADR (PTR): Free Stock Analysis Report
RYDER SYS (R): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
