Zacks Bull and Bear of the Day Highlights: Hertz Global Holdings, Logitech,
Walgreens, Express Scripts and CVS Caremark
CHICAGO, March 7, 2013
CHICAGO, March 7, 2013 /PRNewswire/ --Zacks Equity Research highlights Hertz
Global Holdings, Inc. (NYSE:HTZ) as the Bull of the Day and Logitech
(Nasdaq:LOGI) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on Walgreens (NYSE:WAG), Express Scripts (Nasdaq:ESRX) and
CVS Caremark (NYSE:CVS).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
Autos have been a bright light in this otherwise dim economic recovery. With
leisure and corporate travel on the rise, the car rental business has
performing as well. Today's bull is the world's largest auto renter and a
Zacks Rank #1 with some impressive financial statistics.
The Hertz Corporation, which is a subsidiary of Hertz Global Holdings, Inc.
(NYSE:HTZ), is the world's largest airport / general use car rental company.
After their merger with the Dollar-Thrifty brands, the company now operates
approximately 10,400 locations in over 150 countries worldwide.
What many don't know is that Hertz also runs one of the world's largest
equipment rental businesses, Hertz Equipment Rental Corporation. Hertz rental
has 340 branches in the United States, Canada, China, France, Spain and Saudi
Hertz also owns Donlen Corporation, a leader in providing fleet leasing and
Bear of the Day:
There were over 155 million smartphones sold worldwide each quarter in 2012.
Total 2011 sales were a staggering 491.4 million units. About 40-50% of all
phones being sold today are smartphones with touch screens and the trend is
Tablets are also booming and changing the computer landscape. Apple Inc. alone
is expected to sell 55 million iPad minis, 33 million iPads and over 190
million iPhones in 2013. Samsung, Google and others will more than double
those sales figures.
No matter what product you favor, they all have one thing in common: touch
For companies like Logitech (Nasdaq:LOGI) that sell mice, keyboards and other
peripherals, the changing landscape, form factors and capabilities of the
devices today are making business extremely tough.
Logitech designs, manufactures and markets innovative peripherals that provide
people with easy access to the digital world. The Company's product family
includes Internet video cameras, mice and trackballs, keyboards, audio and
telephony products, interactive gaming devices and 3D controllers.
Latest Posts on the Zacks Analyst Blog:
Dismal February Results for Walgreens
Drug retailer Walgreens (NYSE:WAG) recently disclosed its sales data for the
month of Feb.
Walgreens also reported sales for the second quarter of fiscal 2013, ending
Feb 28. Total sales came in at $18.63 billion, down 0.1% year over year and
trailing the current Zacks Consensus Estimate of $18.91 billion, missing
top-line Zacks Consensus Estimate for the fourth time in a row.
Walgreens is slated to release second quarter fiscal 2013 earnings later this
Walgreens suffered a setback after improving monthly results in Jan as Feb
sales declined 2.2% on a year-over-year basis to $5.75 billion. However, the
dull results can be attributed to one extra day of the leap year in Feb 2012.
Excluding this impact, sales in Feb 2013 inched up 1.5%.
Total front-end sales edged down 3.1% (flat excluding the leap-year impact)
compared with the year-ago period, while comparable store front-end sales
declined 1.4%. Customer traffic in comparable stores was down 4.9% although
basket size increased 3.5% year over year.
Prescriptions filled at comparable stores at Walgreens improved 6.5% in the
reported month on the heels of a 0.1 percentage point positive impact from the
higher incidence of flu. According to the company, flu shot administration did
not affect the comparable store sales in Feb 2013.
Total sales in comparable stores dipped 0.6% on a year-over-year basis. A
decline of 3.7 percentage points was attributable to generic wave in the
pharmaceutical industry during the last 12 months.
The introduction of generic drugs also led to a 2.1% decline in Walgreens'
total pharmacy sales which accounted for the lion's share (61.9%) of total
sales in Feb. Comparable store pharmacy sales remained flat despite the
adverse impact of 2.3 percentage points due to the generic wave. Flu shots
administered at pharmacies and clinics season-to-date were about 7.0 million,
up approximately 27% year over year.
To date, Walgreens' Balance Rewards loyalty program (launched on Sep 2012) has
recorded roughly 60 million registrations. The company opened 11 stores and
closed one during the month.
As of Feb 28, 2013, the company operated 8,539 locations in 50 states, the
District of Columbia, Puerto Rico and Guam, including 8,071 drugstores (231
more compared with the year-ago period). The company also operates infusion
and respiratory service facilities, specialty pharmacies and mail service
Walgreens' second quarter was the first full quarter to include the benefit
from the return of Express Scripts (Nasdaq:ESRX) customers following the
resolution of the earlier impasse between the two companies. Despite the
upside, Walgreens reported another quarter of lean sales.
Not only did the top-line result lag the year-ago mark, it failed to meet our
expectations. Market sentiments also slipped due to the disappointing results
as stock price declined 2.51% (or $1.05) to close at $40.72 on Mar 5, 2013.
As expected by Walgreens, the pharmacy business continues to slow down as the
generic wave continues to hurt franchise revenues. In the interim, the
company's strategy of reviving growth of its front-end stores is paying off.
However, we believe that competitive industry conditions and tough current
business environment prevail for Walgreens.
The stock carries a Zacks Rank #3 (Hold). While we remain on the sidelines for
Walgreens, we are bullish on CVS Caremark (NYSE:CVS), 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
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