Zacks Bull and Bear of the Day Highlights: O'Reilly Auto, Standard Parking,
Telus, Rogers Communications and BCE Inc.
CHICAGO, March 18, 2013
CHICAGO, March 18, 2013 /PRNewswire/ --Zacks Equity Research highlights
O'Reilly Auto (Nasdaq:ORLY) as the Bull of the Day and Standard Parking
(Nasdaq:STAN) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on Telus Corporation (NYSE:TU), Rogers Communications Inc.
(NYSE:RCI) and BCE Inc. (NYSE:BCE).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
As a leader in their industry and a top Zacks Rank among peers, O'Reilly Auto
(Nasdaq:ORLY) is a stock that should not be ignored. The company has beaten
the Zacks Consensus Estimate five earnings reports in a row, exceeding
expectations by an average of 5%. More than that, they are in a space with
strong growth and a somewhat defensive correlation to the broad market.
Things have come a long way since 1957 when O'Reilly was first formed. In
1960, there were 74 million cars on the road and 180 million people in the
U.S. Today, there are over 300 million people in the U.S. and close to 250
million registered vehicles on the roads.
The DIY (do it yourself) auto repair market has grown along with the auto,
truck and motorcycle industry and so have the local shops (maintainers) that
do the work for us.
With parts and repair costs dropping and cars becoming more complicated, the
ratio of DIY to DIFM (do-it-for-me) has been dropping as well. O'reilly is
positioned to take advantage of that trend by catering to non-agency
maintenance shops in addition to the DIYers looking to put in a new battery ,
perform minor maintenance or detail their rides.
Bear of the Day:
Joni Mitchell may have been on to something with her 1970 hit, "Big Yellow
Taxi." If you remember the chorus, "They paved paradise to put up a parking
lot." Well, parking lots have sprung up all over the U.S. over the years
(often on sites of demolished buildings or open spaces) and are a necessity in
our modern mobile world and the over 250 million registered vehicles now
filling U.S. roads.
Operating them efficiently and profitably may be another song (and feat) all
Standard Parking (Nasdaq:STAN) is one of the largest parking companies in the
States. Since merging with Central Parking in 2012, Standard now operates more
than 4,200 facilities with more than 2.2 million parking spaces in hundreds of
cities across North America.
Their business also includes parking-related and shuttle bus operations
serving more than 75 airports. USA Parking System, a wholly-owned subsidiary
of Central Parking, is one of the premier valet operators in the nation with
more four and five diamond luxury properties, including hotels and resorts,
than any other valet competitor.
As much as this seems positive, future growth comes with its share of hurdles
due to real estate costs and other factors. Improvements in infrastructure and
public transportations will also put pressure on earnings expansion.
Latest Posts on the Zacks Analyst Blog:
TELUS Splitting 2 for 1
Telus Corporation (NYSE:TU) recently announced a stock split of two for one.
The company's shareholders are expected to receive their additional shares on
Apr 16, for each share they hold on the record date of Apr 15, 2013. Post
split, Telus shares will commence trading on TSX and NYSE from Apr 17.
Telus' stock split remains concurrent with its shareholder friendly
initiatives that aim at improving their interest while adding liquidity in
share trading. Under these initiatives, the company has taken several
These include exchanging 151 million non-voting shares with common shares in a
1:1 ratio on Feb 4, 2013, and adhering to a dividend growth model of 10% per
annum from 2011–2013. In addition, the company also intends to provide updates
on dividend growth for the period 2014–2016 at its shareholder meeting on May
Such initiates lead us to believe that Telus is focused on maximizing
shareholder value by increasing returns. This can be attributed to the
company's business momentum that supports the top and bottom lines, thereby
enhancing its market value.
Telus continues to benefit from its leading wireless subscriber base,
increased penetration of smartphones, improving churn (customer switch),
accelerating wireless data services and spreading wireline fiber optic
networks. Based on these tailwinds, the company has registered increasing
average revenue per unit in 2012.
As a result, the company expects earnings to improve on better revenues and
operating profits as well as lower financing costs in the near term. In
addition, Telus expects free cash flow growth to improve on reduced cash taxes
and employer pension contributions, despite continued investments for the
expansion of both wireline and wireless services.
However, accelerated access line erosion in the wireline segment, a weak
Canadian economy, competitive threats and reduced roaming charges keep us wary
on the stock.
Telus Corporation – which operates within the Canadian telecom industry along
with Rogers Communications Inc. (NYSE:RCI) and BCE Inc. (NYSE:BCE) – currently
carries a Zacks Rank #4 (Sell).
Get the full analysis of all these stocks by going to
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