Corelogic, Andersons, Verizon Communications, Google and Cisco Systems highlighted as Zacks Bull and Bear of the Day
CHICAGO, Dec. 18, 2014 /PRNewswire/ -- Zacks Equity Research highlights Corelogic (NYSE:CLGX-Free Report) as the Bull of the Day and Andersons (Nasdaq:ANDE-Free Report)as the Bear of the Day. In addition, Zacks Equity Research provides analysis onVerizon Communications Inc. (NYSE:VZ-Free Report), Google Inc. (Nasdaq:GOOGL-Free Report) and Cisco Systems, Inc. (Nasdaq:CSCO-Free Report).
Here is a synopsis of all five stocks:
Corelogic (NYSE:CLGX-Free Report) getting it right has never been as important as it is right now. That sort of cliche always seems to make sense, but for the banks that are taking on big risks via substantial mortgage commitments, it has never been more dead on. CGLX Zacks Rank #1 (Strong Buy) and it helps banks and others involved in real estate get the information they need to make better decisions. It is the Bull of The Day.
That headline might draw your ire, but the idea is that buyers and developers are going to be scrutinized harder than ever. Why is that? As oil has collapsed, the junk bond market has taken a big hit, and that could translate into significant losses for major financial institutions. That, in turn, will reduce the appetite for risk and cause banks to not back some of the more risky bets.
That lack of liquidity to the system should have an impact on real estate buyers over the coming months.
CoreLogic provides property, financial and consumer information, analytics, and services. The company operates through two segments, Technology and Processing Solutions and Data & Analytics. CoreLogic was incorporated in 1894 and is headquartered in Irvine, California.
The most recent quarter was a solid one, with the company reporting EPS of $0.42, $0.07 ahead of the Zacks Consensus Estimate of $0.35. That translates into a positive earnings surprise of 20%, but as much as the beat was nice, I prefer to look at the topline.
CLGX reported revenue of $367M, $15M ahead of the Zacks Consensus of $352M. That 4.3% positive revenue surprise is the largest beat since teh June 2013 quarter that also saw a $15M beat of the Zacks Consensus Estimate for revenue.
Andersons (Nasdaq:ANDE-Free Report) has seen a recent wild swing of a huge miss, a big beat and another huge miss. This has caused earnings estimates to decrease and that has cause its Zacks Rank to fall to a #5 (Strong Sell) and today it is the Bear of the Day.
This has been a difficult year for farmers. There are numerous reports that talk about how futures for corn, wheat and soybeans have fallen between 5% and 20% this year.
Low oil prices might allow for crops to get to market in a less expensive manner, but at the end of the day lower crop prices mean less "CapEx" out of the farm.
The Andersons was founded in 1947 by Harold Anderson in Maumee, Ohio with a single grain elevator. It has grown into an agribusiness company with 6 business segments across North America, including in grain, ethanol, plant nutrient, turf and cob products and consumer retailing.
It also has rail equipment leasing interests in Canada and Mexico.
As I glanced over the numbers that ANDE has posted of late, I see that in each of the last four quarters the company has missed the Zacks Consensus Estimate for revenue, and its not by just a million or two. These are big misses, negative revenue surprises of 6%, 27%, 5% and 11%.
If you are not making it on top, then expenses have to be rushing towards zero if you are going to beat on bottom. Let's take a look there.
ANDE has beat in four of the last seven quarters, but they also have missed in three of seven, and the misses were all negative earnings surprises of 21% or more.
Additional content:
Verizon, Google Sign Cross-Licensing Patent Agreement
Verizon Communications Inc. (NYSE:VZ-Free Report) and Google Inc. (Nasdaq:GOOGL-Free Report) have struck a long-term agreement pertaining to multiple patents. Per the deal, both the companies will have access to each other's patented technologies.
The agreement will thus allow the two companies to focus on delivering a wide range of products and services to customers while also reducing the risk of frivolous patent lawsuits in the future.
The deal is designed to serve as a hedge against patent trolls. Thus, by uniting their patent portfolios, Verizon and Google aim to reduce the possibility of trolls using patents against them. This should result in fewer patent infringement issues and consequently, lower monetary expenditure.
The arrangement will effectively prohibit the companies from filing a suit against each other over any of the thousands of patents they presently hold or will gain hold of in the next five years. Moreover, it also shields the companies against unwanted situations like either of them selling a patent to another entity; and eventually, that third company going on to file a lawsuit.
Interestingly, Google has been forming patent deals with a number of other network providers as well. The search giant has already signed wide-ranging patent cross licensing deals with Cisco Systems, Inc. (Nasdaq:CSCO-Free Report), Samsung Electronics and LG Electronics this year, in an effort to fend off potential patent lawsuits in the future.
Notably, Verizon has also always been supportive of patent developments and industry measures that encourage innovation and reduce expensive and prolonged lawsuits. Moreover, the company is looking forward to strike similar deals with other high-tech companies who are also troubled with the innovation tax that patent trolls often charge from them.
Currently, Verizon has a Zacks Rank #3 (Hold).
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