Zacks Bull and Bear of the Day Highlights: International Game Technology,
Aeropostale, Quicksilver Resources, WPX Energy and Forest Oil
CHICAGO, Feb. 26, 2013
CHICAGO, Feb. 26, 2013 /PRNewswire/ -- Zacks Equity Research highlights
International Game Technology (NYSE:IGT) as the Bull of the Day and
Aeropostale (NYSE:ARO) as the Bear of the Day. In addition, Zacks Equity
Research provides analysis on Quicksilver Resources Inc. (NYSE:KWK), WPX
Energy Inc. (NYSE:WPX) and Forest Oil Corp. (NYSE:FST).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
This stock might not be as much of a gamble as you think. International Game
Technology (NYSE:IGT) is a Zacks Rank #2 and trades at just over 12 times
forward earnings. The company has beaten the Zacks Consensus Estimates two
earnings reports in a row (5 of the last 6), exceeding analysts' expectations
by an average of 17.4%.
IGT can trace its roots all the way back to the 1950s, but since going public
in 1981 the company has reinvented itself, expanded and is now one of the
largest manufacturers of computerized casino gaming products and operators of
proprietary gaming systems in the world. It was the first to develop
computerized video gaming machines and has made a recent foray into online
IGT is also a member of the S&P 500 and is headquartered in Nevada with
offices in Reno and Las Vegas.
IGT is in the midst of a proxy battle for board seats as the company looks to
broaden its horizon and maybe alter its trajectory.
Bear of the Day:
Even though Aeropostale (NYSE:ARO) shares are down over 50% from where they
were just 10 months ago, they still may be too expensive, especially trading
at 17 times forward earnings with just a 1.60% increase in quarterly revenue
compared to the same quarter a year ago (the industry average p/e is closer to
13 times forward).
ARO is also a Zacks Rank #5 (strong sell), which puts it in the "stocks you
don't want to be long in an unsure market" category. Let me explain why...
Aeropostale, Inc. is a mall-based, specialty retailer of casual apparel and
accessories, principally targeting fourteen to seventeen year-old young women
and men (talk about a small target).
The Company provides customers with a focused selection of high-quality,
active-oriented, fashion and fashion basic merchandise at compelling values.
Aeropostale maintains control over its proprietary brands by designing,
sourcing, marketing and selling all of its own merchandise. Aeropostale
products are currently purchased only in its stores, on-line through its
e-commerce website or at organized sales events at college campuses.
Latest Posts on the Zacks Analyst Blog:
Natural Gas Storage Falls
The U.S. Energy Department's weekly inventory release showed a
larger-than-expected decrease in natural gas supplies. Despite this drawdown,
gas stocks continue to remain bloated, reflecting low demand amid robust
About the Weekly Natural Gas Storage Report
The Weekly Natural Gas Storage Report – brought out by the Energy Information
Administration (EIA) every Thursday since 2002 – includes updates on natural
gas market prices, the latest storage level estimates, recent weather data and
other market activities or events.
The report provides an overview of the level of reserves and their movements,
thereby helping investors understand the demand/supply dynamics of natural
gas. It is an indicator of current gas prices and volatility that affect
businesses of natural gas-weighted companies and related support plays.
Analysis of the Data
Stockpiles held in underground storage in the lower 48 states fell by 127
billion cubic feet (Bcf) for the week ended Feb 15, 2013, higher than the
guided range (of 117–121 Bcf drawdown) as per the analysts surveyed by Platts.
The decrease represents the thirteenth withdrawal of the 2012-2013 winter
heating season after stocks hit an all-time high in early November last year.
However, the draw was lower than both the last year's withdrawal of 155 Bcf
and the five-year (2008–2012) average reduction of 140 Bcf for the reported
Following the past week's reduction, the current storage level – at 2.400
trillion cubic feet (Tcf) – is down 242 Bcf (9.2%) from the last year but is
still 361 Bcf (17.7%) above the five-year average.
In fact, natural gas inventories in underground storage have persistently
exceeded the five-year average since late September 2011 and ended the usual
summer stock-building season of April through October at a record 3.923 Tcf
(as of Oct 31, 2012).
A supply glut kept the natural gas prices under pressure during the couple of
years or so, as production from dense rock formations (shale) – through novel
techniques of horizontal drilling and hydraulic fracturing – remain robust,
thereby overwhelming demand.
However, with the U.S. winter set to be colder than the unusually warm last
one, we might expect some balancing of the commodity's supply/demand disparity
on the back of its more normalized use for space heating by
This, in turn, could improve the prices and buoy natural gas producers,
particularly smaller players like Quicksilver Resources Inc. (NYSE: KWK), WPX
Energy Inc. (NYSE: WPX) and Forest Oil Corp. (NYSE: FST). With an improvement
in the companies' ability to generate positive earnings surprises, they can
then move higher from their current Zacks Rank #3 (Hold).
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
About the Analyst Blog
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Zacks Equity Research about the latest news and events impacting stocks and
the financial markets.
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