CHICAGO, March 11, 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 Noah Holdings Limited (NYSE:NOAH-Free Report), Coach, Inc. (NYSE:COH-Free Report), Hanesbrands Inc. (NYSE:HBI-Free Report), Michael Kors Holdings Limited (NYSE:KORS-Free Report) and G-III Apparel Group, Ltd. (Nasdaq:GIII-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:
Noah Holdings Upped to Strong Buy
On Mar 8, Zacks Investment Research upgraded Noah Holdings Limited (NYSE:NOAH-Free Report) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Shanghai based investment management firm Noah Holdings has witnessed positive estimate revisions on the back of strong fourth-quarter 2013 results. The company has delivered positive earnings surprises in 3 of the 4 quarters of 2013 with an average beat of 61.8%. Further, the expected EPS growth rate now stands at 24.9%.
On Feb 26, Noah Holdings reported its fourth-quarter and full-year 2013 results. Income per ADS in the reported quarter came in at 24 cents, beating the Zacks Consensus Estimate by 20.0%. Results benefited from top-line growth aided by strong wealth management performance.
Driven by a surge in both third-party revenues and related party revenues, net revenue was up 81.1% year over year to $45.4 million. However, total expenses rose 75.6% to $18.3 million.
During the quarter, active clients were up 78.9% year over year to 2,927. Further, Noah Holdings distributed wealth management products worth around $1.9 billion in the quarter, representing an 81.0% increase from the prior-year period. Notably, it comprised 83.5% fixed income products, 11.6% private equity fund products while other products, including mutual fund products, private securities investment funds and insurance products, covered the remaining 4.9%.
As of Dec 31, 2013, total number of registered clients stood at around 53,501, reflecting a year-over-year rise of 32.7%.
Additionally, the Zacks Consensus Estimate for 2014 increased 5.5% to $1.16 per share.
Coach Falls to Strong Sell
On Mar 8, 2014, Zacks Investment Research downgraded Coach, Inc. (NYSE:COH-Free Report), the maker of handbags, wallets, shoes and other accessories, to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Estimates for Coach have shown a downtrend since the company reported second-quarter fiscal 2014 results. The company came up with disappointing sales that declined 6% to $1,419.6 million — after dipping 1% during the first quarter — due to sluggishness in the North American market and also fell short of the Zacks Consensus Estimate of $1,501 million.
Coach sells products that are largely discretionary in nature and thereby depend upon the consumers' disposable income. Consumers in turn are highly sensitive to the macroeconomic factors. Given the difficult consumer spending environment in the past couple of quarters, things have become a little difficult for Coach of late.
The bottom line also failed to impress investors, as quarterly earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.11 and tumbled 13.8% from the prior-year quarter.
Fashion obsolescence remains a major concern for Coach's business model, which involves a sustained focus on product and design innovation. The company's pioneer position could be affected by delays in product launches. It is noteworthy that the company operates in the highly competitive premium handbag and accessories segment.
The softness in results triggered a downtrend in the Zacks Consensus Estimates, as analysts become less constructive on the stock's future performance. This is evident from the movement witnessed in the Zacks Consensus Estimate that fell 8.6% to $3.17 for fiscal 2014 and 9.4% to $3.45 per share for fiscal 2015 in the past 60 days.
Other Stocks that Warrant a Look
Other better-ranked retail stocks that look promising and are expected to continue with their upbeat performance include Hanesbrands Inc. (NYSE:HBI-Free Report) and Michael Kors Holdings Limited (NYSE:KORS-Free Report) both carrying a Zacks Rank #1 (Strong Buy), while G-III Apparel Group, Ltd. (Nasdaq:GIII-Free Report) sports a Zacks Rank #2 (Buy).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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