The Zacks Analyst Blog Highlights: Tyson Foods, Sanderson Farms, Supervalu,
Kroger and Edison International
CHICAGO, Feb. 26, 2013
CHICAGO, Feb. 26, 2013 /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 Tyson Foods Inc. (NYSE:TSN),
Sanderson Farms Inc. (Nasdaq:SAFM), Supervalu Inc. (NYSE:SVU), Kroger Company
(NYSE:KR) and Edison International (NYSE:EIX).
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday's Analyst Blog:
Sequester to Affect Meat Giants
The meat industry, which hit a two year high in exports to Japan last week,
apprehends a huge loss when inspectors are furloughed by the U.S. Agriculture
Department (USDA), according to the proposed budget of the U.S. government in
The spending cut and tax increases to cover the deficit by the U.S. government
was scheduled to begin in Jan 2013, but was eventually pushed back to Mar
2013. This was because the differences between President Obama and
congressional Republicans were still to be resolved.
Up to one-third of the workers appointed by the U.S. Agriculture Department
could be laid off as a cost-cutting measure by the U.S. government.
If that happens, it will lead to a two-week shutdown of plants owned by meat
processing giants like Tyson Foods Inc. (NYSE:TSN) and Sanderson Farms Inc.
(Nasdaq:SAFM). By law, meat processors cannot sell beef, pork, lamb and
poultry meat without the USDA inspection seal.
According to Agriculture Secretary Tom Vilsack, the impact of the furlough of
inspection personnel may amount to 15 days of lost production costing over $10
billion. However, Vilsack has assured meat processing giants that they will
not have to shut down the plants very soon. That is on account of the
inspectors being allowed 30 to as many as 120 days, or four months' notice of
The move to furlough the nation's federal meat, poultry and egg products
inspectors by the USDA as a measure of sequestration has been condemned by
several organizations. The National Chicken Council requested the USDA to
consider the decision once again as the shutdown of meat plants will
negatively affect schools and other public institutions that rely on
contracted-for meat and poultry products.
Sanderson Farms apprehends a huge loss during the 15-day furlough of
inspection personnel and consequent shutdown of plants. The company also said
that live chickens would suffer from higher mortality. The mortality would
occur when chickens gained weight as a result of the company postponing
chicken processing, which would in turn affect supply to grocery chains like
Supervalu Inc. (NYSE:SVU) and Kroger Company (NYSE:KR).
Tyson Foods, however, said that it is monitoring the proceedings regarding the
budget cut and that it would stay away from any speculation in the interim
Currently both Tyson Foods and Sanderson Farms carry a Zacks Rank #1 (Strong
Edison Int'l to Miss Again?
EdisonInternational (NYSE:EIX) is slated to release its fourth quarter 2012
financial results after the market bell on Feb 26, 2013. In the last reported
quarter, the electric generation and distribution company posted a negative
surprise of 26.36%. Let's see how things are shaping up at Edison prior to
Factors to Consider This Quarter
We believe the company's weak merchant generation fleet, pending general rate
case decision and uncertainty regarding the approval of restarting the San
Ofre nuclear unit will act as challenges for the stock.
However, benefits accrued from sale of its remaining lease interest in the
Beaver Valley nuclear station and lower income tax could somewhat provide a
respite from the aforementioned negatives.
Our proven model does not conclusively show that Edison International is
likely to beat earnings this quarter. That is because a stock needs to have
both a positive earnings Expected Surprise Prediction (ESP) (Read: Zacks
Earnings ESP: A Better Method) and a Zacks Rank of #1, 2 or 3 for this to
happen. This is not the case here.
Negative Zacks ESP: This is because the Most Accurate estimate stands at $1.05
per share while the Zacks Consensus Estimate is higher at $1.09, resulting in
Zacks Rank #3 (Hold): Edison's Zacks Rank #3 when combined with negative ESP
makes surprise prediction difficult. We caution investors against the stock
going into the earnings announcement, as a negative Zacks ESP lowers the
possibility of an earnings surprise.
Want more from Zacks Equity Research? Subscribe to the free Profit from the
Pros newsletter: http://at.zacks.com/?id=5515.
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
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
Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results. Amongst his
many accomplishments was the formation of his proprietary stock picking
system; the Zacks Rank, which 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 at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance
numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any investments.
Nothing herein should be construed as an offer or solicitation to buy or sell
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.