Zacks Bull and Bear of the Day Highlights: ResMed, Golar LNG, Kansas City
Southern, CSX and Norfolk Southern
CHICAGO, Jan. 30, 2013
CHICAGO, Jan. 30, 2013 /PRNewswire/ --Zacks Equity Research highlights ResMed
Inc. (NYSE:RMD) as the Bull of the Day and Golar LNG Limited (Nasdaq:GLNG) as
the Bear of the Day. In addition, Zacks Equity Research provides analysis on
Kansas CitySouthern (NYSE:KSU), CSX Corporation (NYSE:CSX) and Norfolk
Southern Corp. (NYSE:NSC).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
ResMed Inc. (NYSE:RMD) is a leading designer, manufacturer and distributor of
medical equipment for treating and diagnosing sleep disordered breathing.
Sleep disordered breathing includes sleep apnea and related respiratory
conditions. The company sells a comprehensive range of diagnostic and
treatment devices in countries through a combination of wholly owned
subsidiaries and independent distributors.
Another record quarter for ResMed boosted this maker of sleep apnea products
back to a Zacks #1 Rank this week. In the San Diego-based company's earnings
report last week, EPS for the second quarter of FY13 came in at 53 cents, a 4%
beat over the analyst consensus.
This is ResMed's 5th consecutive earnings beat and its 15th beat of the last
17 quarters. And investors who were not awake for this story got on board
after this report, driving the stock up 5.5% last Friday to new all-time highs
Bear of the Day:
Some US energy companies and their investors are preparing for the day when
they are allowed to export portions of the country's vast natural gas
reserves. Golar LNG Limited (Nasdaq:GLNG) is a Norwegian ocean tanker company
that specializes in the transportation of liquid natural gas, or LNG. One of
its key shipping and delivery technologies are known as Floating Storage
Re-Gasifiction Units (FSRUs) and would be instrumental in that energy trend.
Unfortunately, that dream may still be quite a way off in the distance.
Investors who piled into the phenomenal, triple-digit earnings growth story of
GLNG in early 2012 were soon disappointed about the prospects for the
continued pace of that growth. Since the stock has recently become a Zacks #5
Rank (Strong Sell) again, it's a good time to look at the business and EPS
Golar was originally founded in 1946 as Gotaas-Larsen Shipping Corporation.
Gotaas-Larsen entered the LNG shipping business in 1970 when it ordered the
LNG Carrier Hilli, which is still part of their fleet today.
In April, 2007, Golar was awarded its first firm FSRU commitments via the
award of two long term leases by Petrobras to employ Golar Winter and Golar
Spirit as FSRUs. Today, Golar has four FSRU projects and is actively pursuing
further growth as a midstream LNG company.
Latest Posts on the Zacks Analyst Blog:
Kansas City Southern Hikes Dividend
One of the leading and oldest freight railroads, Kansas CitySouthern
(NYSE:KSU) has increased its dividend by 10% to 21.5 cents per share on its
common stock. The increased dividend is payable on Apr 3, to stockholders of
record on Mar 11.
Moreover, the company also announced a dividend payment of 25 cents on its
preferred stock. This dividend will be paid on Apr 2, to the preferred
stockholders of record on Mar 11.
Historically, the company made dividend payments only on its preferred stock
until last year, when it initiated dividends on its common stock. On Apr 27,
2012, the company paid a dividend payment of 19.5 cents.
We believe the increase in dividend payments on the company's common stock
stems from its stellar earnings performance and encouraging outlook for the
rest of the current year. In fourth quarter 2012, the company reported an
earnings growth of 19.5% from year-ago results driven by higher freight rates
and volumes. For the full year, the growth rate was 14.3% year over year.
Similar to the other railroads like CSX Corporation (NYSE:CSX) and Norfolk
Southern Corp. (NYSE:NSC), Kansas City Southern has exercised a strong pricing
discretion. This has led to average pricing gains of nearly 4–5% per annum,
and a subsequent double-digit profit margin.
Apart from strong pricing fundamentals, we believe an improvement in business
volumes and effective cost-control measures remain the primary catalysts for
the company's growth. Additionally, improving cross-border traffic between the
U.S. and Mexico and emerging business opportunities in the Mexican market
supported by its cheap labor cost will boost the company's bottom line.
Over the past year, Kansas City Southern has significantly benefited from
positive rail industry fundamentals supported by truckload conversion to rail.
Additionally, several cost control initiatives have led to operating ratio
As a result, management expects to post consistent operating ratio
improvement, taking its U.S. operating ratio down to approximately 78.0% over
the next 3–5 years. Despite the ongoing economic uncertainty, management is
still committed to achieve the same goals that include an operating ratio in
the low 70s over the long term.
Get the full analysis of all these stocks by going to
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