CHICAGO, Sept. 4, 2014 /PRNewswire/ -- 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 Netflix Inc. (Nasdaq:NFLX-Free Report), Facebook (Nasdaq:FB-Free Report), Amazon.com (Nasdaq:AMZN-Free Report), Google (Nasdaq:GOOGL-Free Report) and Willis Group Holdings Public Limited Co. (NYSE:WSH-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
New Netflix Feature Lets Users Be More Selective
Netflix Inc. (Nasdaq:NFLX-Free Report) will allow its subscribers to be selective about their movie and show recommendations that they will like to share with friends on Facebook (Nasdaq:FB-Free Report).
Earlier, Netflix subscribers whose accounts were linked to their respective Facebook accounts automatically ended up sharing everything they were watching with the entire friend list.
Netflix believes that the open-ended system of sharing had made many people reluctant to use the sharing feature. People were not comfortable sharing their preferences with acquaintances.
Per the new system, lists displaying the names of Facebook friends will appear on screen once Netflix subscribers finish watching a video, provided the sharing feature is enabled.
The company believes that by giving more control to users for sharing their preferences, will enable it to gain user loyalty. This, in turn, will enhance its user base and drive growth going forward.
Netflix's association with Facebook dates back to 2011 when the two had linked their services for overseas business. Later in 2013, again they collaborated for U.S.-based business.
During the recently concluded second quarter of fiscal 2014, Netflix had surpassed 50 million subscribers, with the majority of them being from the U.S.. In the near future, the company intends to extend its foothold in the international arena by launching its services in Germany, France, Austria, Luxembourg, Switzerland and Belgium.
Although we believe that a fast growing subscriber base will drive the top line this year, rising content costs and expenditure related to international expansion are major headwinds. Moreover, intensifying competition from the likes of Amazon.com (Nasdaq:AMZN-Free Report), Google's (Nasdaq:GOOGL-Free Report) Youtube, HBO and Hulu remains a major concern.
Currently, Netflix has a Zacks Rank #3 (Hold).
Willis Group (WSH) Down to Strong Sell on Weak Q2
On Sep 3, 2014, Zacks Investment Research downgraded Willis Group Holdings Public Limited Co. (NYSE:WSH-Free Report) to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Willis Group has witnessed downward estimate revisions after missing the Zacks Consensus Estimate in second-quarter 2014. Notably, the company delivered negative earnings surprises in the last four quarters with an average of negative 9.7%.
On Jul 29, 2014, Willis Group reported second-quarter adjusted net income of 49 cents per share that lagged the Zacks Consensus Estimate by nearly 17%. The results were also lower than the prior-year quarter figure by 16.9% due to higher expenses.
Total expenses at Willis Group increased 6.3% year over year to $784 million. This resulted from a rise in business development expenses and professional fees associated with acquisitions and systems.
Despite revenue improvement, a greater rise in expense dragged the company's adjusted operating income by 3.2% to $151 million. Adjusted operating margin contracted 130 basis points (bps) to 16.1%.
Willis Group's debt showed a marginal increase and cash and cash equivalents decreased (down by 11%) at the reported quarter-end. Return on equity also declined to 2% from 4.7% in the year-ago period.
The Zacks Consensus Estimate for 2014 decreased 1.6% to $2.53 per share over the last 30 days as 2 out of 8 estimates moved south. For 2015, 3 out of 11 estimates were revised downward over the same time frame, which lowered the Zacks Consensus Estimate by 4.7 % to $2.82 per share.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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