CHICAGO, April 2, 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 Tyson Foods Inc. (NYSE:TSN-Free Report), Sanderson Farms Inc. (Nasdaq:SFM-Free Report), Hormel Foods Corp. (NYSE:HRL-Free Report), Bank of America Corporation (NYSE:BAC-Free Report) and Wells Fargo & Company (NYSE:WFC-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Court Stands by Strict Meat Product Labels
The meat industry, which has already been affected by federal budget cuts, is seeing more changes in the form of U.S. Department of Agriculture's (USDA) 'Country of Origin Labels' (COOL). Per media reports, meat producers' attempts to suspend the newly modified COOL were nullified by a U.S. Court of Appeal. The Judge stated that the law helped consumers make informative choices about the products they bought.
The law on meat labeling requires processed meat packs to provide details about the geographical origin of the meat.
The ruling is an extension of the already existing custom of labeling the Country-of-Origin of the meat sold at retail outlets. The meat packets containing muscle cuts, such as steaks and pork chops, which were to date being labeled simply as a product of one or more countries, would have to be more specific. Meat producers will now have to add information regarding where the animal was born, raised and slaughtered.
Moreover, the ruling requires that all the meat in a packet should come from one source. Mingling of meat from different sources will be allowed for ground meat only.
The new verdict is in response to a World Trade Organization (WTO) ruling passed in 2012, which required the U.S. government to modify the labeling rule by May 23, 2013. The Country of Origin Labels were made mandatory by the U.S. government in 2009.
The stricter Country of Origin Label will provide the U.S. products with a competitive advantage over foreign products. U.S. consumers, if offered a clear choice, prefer fresh foods of domestic origin, thereby strengthening demand and prices. The stricter labels will increase meat consumption as consumers will be free from concerns such as the danger of contracting Mad Cow Disease or Bovine Spongiform Encephalopathy, which was first diagnosed in Canadian dairy herds in 2003.
However, the new rule is opposed by meat processors like Tyson Foods Inc. (NYSE:TSN-Free Report), Sanderson Farms Inc. (Nasdaq:SFM-Free Report) and Hormel Foods Corp. (NYSE:HRL-Free Report) led by the American Meat Institute. According to these companies, the new rule forces the segregation of animals and thereby, raises costs.
BofA Faces Another Legal Hassle
A lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Bank of America Corporation (BAC-Free Report) was recommended to be continued by a U.S. Magistrate Judge David Cayer. The news was confirmed on Monday in a Reuters report.
It was alleged that BofA sold faulty residential mortgage backed securities (RMBS) worth more than $855 million in the pre-crisis period. The company misled investors by compromising on the quality of 1191 loans that backed these securities.
Among the investors who purchased these loans, were Wachovia Bank National Association, which was later acquired by Wells Fargo & Company (NYSE:WFC-Free Report), and the Federal Home Loan Bank of San Francisco.
In Aug 2013, the Department of Justice (DOJ) and the SEC filed two separate civil lawsuits against BofA pertaining to the aforementioned RMBS sale. Last Thursday, Judge Cayer hinted at the dismissal of the lawsuit filed by the DOJ. However, charges slapped by the SEC under the Securities Act of 1933 were upheld as the Judge found evidence that reflected violation of the Act.
Judge Cayer maintained that BofA concealed as well as misinterpreted facts and information related to the RMBS. The company, in its disclosures to the investors, had also manipulated the proportion of loans that went through third-party brokers to 42% from the actual figure of 70%
Nevertheless, the recommendations made by Judge Cayer will be reviewed by U.S. District Judge Max Cogburn in Charlotte.
Litigations related to the sale of risky mortgage loans have weighed heavily against the profitability of the Wall Street biggies like BofA. Since 2010, the company has shelled out more than $50 billion to settle mortgage related issues.
The stringent regulations seem to constraint the earnings of the companies, thereby resulting in losses for shareholders. However, these regulations ensure a more sustainable and secure investment environment over the long term.
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 TSN - FREE
Get the full Report on SFM - FREE
Get the full Report on HRL - FREE
Get the full Report on BAC - FREE
Get the full Report on WFC - FREE
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
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
[email protected]
http://www.zacks.com
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.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
Share this article