Zacks Bull and Bear of the Day Highlights: Francesca's Holdings, Tiffany,
Vornado Realty Trust, Starwood Property Trust and Digital Realty Trust
CHICAGO, Jan. 28, 2013
CHICAGO, Jan. 28, 2013 /PRNewswire/ --Zacks Equity Research highlights
Francesca's Holdings Corporation (Nasdaq:FRAN) as the Bull of the Day and
Tiffany & Company (NYSE:TIF) as the Bear of the Day. In addition, Zacks Equity
Research provides analysis on Vornado Realty Trust (NYSE:VNO), Starwood
Property Trust Inc. (NYSE:STWD) and Digital Realty Trust Inc. (NYSE:DLR).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
There have been retail winners and losers emerging from the 2012 holiday
season. One of the winners was Francesca's Holdings Corporation (Nasdaq:FRAN)
which recently raised its fourth quarter guidance based on a strong holiday
performance. It's a Zacks Rank #1 (Strong Buy).
Francesca's operates 360 small stores in 44 states in strip malls, shopping
malls and neighborhoods which sell a mix of apparel, jewelry, accessories and
gifts in a homey setting. It targets female shoppers aged 18 to 35 and brings
in new merchandise every week to keep offerings fresh.
The company also has a website, francescas.com, which accounts for only 1.5%
of sales but more resources are expected to be put into online sales this
Bear of the Day:
There were retail winners and losers this holiday season. Tiffany & Company
(NYSE:TIF) fell into the loser category as the company recently lowered fourth
quarter guidance due to weak holiday sales. The stock recently fell to a Zacks
Rank #5 (Strong Sell). Everyone knows Tiffany. The famous luxury retailer
operates 274 stores across the globe, with 115 of them in the Americas.
There were high hopes going into this holiday season, especially for the
luxury retailers. The theory went that the high end consumer would keep
spending despite fears of the fiscal cliff and possible higher tax rates and
those aspirational consumers, who want to be in the high end someday, would
splurge on a number of key brands.
But on Jan 10, Tiffany reported flat holiday comps. Most disappointing of all,
it was a 2% same store sales decline in the Americas which really hurt. Even
Asia-Pacific, which included a supposedly slowing China, grew same store sales
at 7%. Europe's same store sales were flat year over year, but that was
expected given the economic climate there.
Latest Posts on the Zacks Analyst Blog:
Vornado to Cash In from LNR Deal
Vornado Realty Trust (NYSE:VNO) expects to reap around $241 million as net
proceeds from the sale of LNR Property LLC, a company in which Vornado holds a
26.2% stake. The deal that LNR Property has penned would see Starwood Property
Trust Inc. (NYSE:STWD) and Starwood Capital Group acquiring LNR Property for
$1.05 billion in cash. It is anticipated to close in the second quarter of
2013, subject to customary closing conditions.
Notably, LNR is currently owned by affiliates of Aozora Bank Ltd, a subsidiary
of certain investment funds managed by Cerberus Capital Management L.P., iStar
Financial, a subsidiary of certain investment funds managed by Oaktree Capital
Management, L.P., and Vornado Realty Trust.
New York-based Vornado Realty acquires, owns and leases office properties,
retail space and temperature-controlled logistics and refrigerated warehouses.
Besides its properties, the company has investments in other REITs, industrial
buildings, retail assets, and Toys 'R' Us.
Vornado Realty has a strong asset portfolio in two of the best long-term
office markets in the U.S. – New York City and Washington DC. This provides
the company with a competitive advantage to continually increase rents. The
company also has a healthy balance sheet and adequate liquidity. The recent
LNR deal will further add to Vornado's financial flexibility and hence we
Vornado Realty currently carries a Zacks Rank #3 (Hold). A number of companies
that are also performing well in the same industry and deserve a look include
Digital Realty Trust Inc. (NYSE:DLR), which carries a Zacks Rank #2 (Buy).
Get the full analysis of all these stocks by going to
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
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