The Zacks Analyst Blog Highlights: ManpowerGroup, Baker Hughes, Transocean,
Diamond Offshore Drilling and Ensco
CHICAGO, April 17, 2013
CHICAGO, April 17, 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 ManpowerGroup Inc. (NYSE:MAN),
Baker Hughes Inc. (NYSE:BHI), Transocean Ltd. (NYSE:RIG), Diamond Offshore
Drilling Inc. (NYSE:DO) and Ensco plc (NYSE:ESV).
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 Tuesday's Analyst Blog:
What's In Store for Manpower Earnings?
ManpowerGroup Inc. (NYSE:MAN) is slated to report its first-quarter 2013
results before the market opens on Apr 19. In the last quarter, it posted a
positive surprise of 18.2%. Let's see how things are shaping up for this
Growth Factors this Past Quarter
Manpower, the global leader in the employment services industry, posted
stronger-than- anticipated fourth-quarter 2012 results on the back of
effective cost management and better gross margin. The company is
contemplating on exiting lower margin business and venturing into high margin
business. On the other hand, the ManpowerGroup Solutions business sustained
its growth momentum. The demand for the counter-cyclical outplacement services
also portrayed signs of steadiness, which increased 16% during the quarter.
Canada, U.K., China and India, all contributed to the company's growth story.
Our proven model does not conclusively show that Manpower is likely to beat
earnings this quarter. This is because a stock needs to have both a positive
Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1,
#2 or #3 for this to happen. This is not the case here as you will see below.
Zacks ESP: ESP for Manpower is -2.27%. This is because the Most Accurate
Estimate stands at 43 cents, while the Zacks Consensus Estimate is pegged at
Zacks Rank #2 (Buy): Manpower's Zacks Rank #2 (Buy) lowers the predictive
power of ESP because the Zacks Rank #2 when combined with a negative ESP makes
surprise prediction difficult. We caution against stocks with Zacks Ranks #4
and #5 (Sell rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions momentum.
U.S. Rig Count Jumps by 33
In its weekly release, Houston-based oilfield services company Baker Hughes
Inc. (NYSE:BHI) reported a rise in the U.S. rig count (number of rigs
searching for oil and gas in the country). This upside can be mainly
attributed to an increase in the tally of oil-directed rigs.
The Baker Hughes' data, issued since 1944, acts as an important yardstick for
drilling contractors like
Diamond Offshore Drilling Inc.
), etc. in gauging the overall business environment of the oil and gas
Analysis of the Data
Rigs engaged in exploration and production in the U.S. totaled 1,771 for the
week ended Apr 12, 2013. This was up by 33 from the previous week's rig count
and indicates the second increase in 3 weeks.
The current nationwide rig count is more than double the lowest level reached
in recent years (876 in the week ended Jun 12, 2009), though it is way below
the prior-year level of 1,950. It rose to a 22-year high in 2008, peaking at
2,031 in the weeks ending Aug 29 and Sep 12.
Rigs engaged in land operations ascended by 32 to 1,697, offshore drilling was
up by 1 to 49 rigs, while inland waters activity remained steady at 25 units.
Natural Gas Rig Count: The natural gas rig count – which recently slumped to
its lowest point since May 1999 – increased for the first time in 4 weeks to
377 (a gain of 2 rigs from the previous week). Despite the weekly improvement,
the number of gas-directed rigs is down by 54% from its 2012 peak of 811. In
fact, the current natural gas rig count remains 77% below its all-time high of
1,606 reached in late summer 2008. In the year-ago period, there were 624
active natural gas rigs.
Oil Rig Count:
The oil rig count – that rocketed to a 25-year high of 1,432 in August last
year – jumped by 30 to 1,387. The current tally is well above the previous
year's rig count of 1,322. It has recovered strongly from a low of 179 in June
2009, rising 7.7 times.
Miscellaneous Rig Count: The miscellaneous rig count (primarily drilling for
geothermal energy) at 7 was up by 1 from the previous week.
Rig Count by Type:
The number of vertical drilling rigs rose by 12 to 463, while the
horizontal/directional rig count (encompassing new drilling technology that
has the ability to drill and extract gas from dense rock formations, also
known as shale formations) was up by 21 to 1,308. In particular, horizontal
rig units – that reached an all-time high of 1,193 in May 2012 – rose by 18
from the last week's level to 1,102.
Zacks Rank: As of now, Transocean, Diamond Offshore and Ensco are all Zacks
Rank #3 (Hold) stocks, implying that these are expected to perform in line
with the broader U.S. equity market over the next one to three months.
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.