Zacks Bull and Bear of the Day Highlights: Nationstar, Monster Beverage,
Questar, QEP Resources and Chesapeake
CHICAGO, May 14, 2013
CHICAGO, May 14, 2013 /PRNewswire/ --Zacks Equity Research highlights
Nationstar (NYSE:NSM) as the Bull of the Day and Monster Beverage
(Nasdaq:MNST) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on Questar Corporation (NYSE:STR), QEP Resources (NYSE:QEP)
and Chesapeake (NYSE:CPK).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
With a strong history of positive earnings surprises and a solid outlook for
the industry, this Zacks Rank #1 (Strong Buy) stock looks like a solid pick
for your portfolio.
Based in Lewisville, Texas, Nationstar (NYSE:NSM) is one of the leading
residential mortgage services companies in the U.S., with a servicing
portfolio of $312 billion. The company offers servicing, origination, and real
estate services to financial institutions and consumers.
On May 7, 2013, Nationstar reported its first quarter 2013 results. Net income
for the quarter came it at$62.6 million or $0.70 per share, up from $50.2
million or $0.67 per share in the first quarter 2012.
Pro-forma earnings excluding ramp-up expenses related BOA portfolio
acquisition were $0.85 per share, substantially ahead of Zacks consensus
estimate of $0.69 per share.
Revenue for the quarter was up 163% to $431.1 million from $164.1 million in
the prior-year quarter. The company delivered an impressive 32% return on
equity during the quarter.
Bear of the Day:
Disappointing results and rising regulatory concerns have led to sharp
downward estimates revisions, sending this energy drink company to a Zacks
Rank #5 (Strong Sell).
Headquartered in Corona, California, Monster Beverage (Nasdaq:MNST) is a
marketer and distributor of energy drinks and alternative beverages.
While energy drinks industry has expanded exponentially in recent years, there
have been rising concerns related to their health risks. New York's attorney
general had subpoenaed energy drink makers, including Monster, and the FDA is
also looking into the safety of these drinks.
San Francisco's city attorney is now suing Monster Beverage for marketing its
energy drinks to children, saying the products pose severe health risks.
The company reported its first quarter results on May 8, 2013. Net income for
the Q1, 2013 was down 16.6% to $63.5 million from $76.1 million in the
previous year quarter. Net income per diluted share also decreased 10.4% to
$0.37 from $0.41 per share in the Q1, 2012. The earnings were substantially
short of the Zacks consensus estimate of $0.47 per share.
The company has disappointed its investors in each of the last four quarters,
with an average negative surprise of 11%.
Latest Posts on the Zacks Analyst Blog:
Questar Hikes Dividend
Natural gas-focused energy company, Questar Corporation (NYSE:STR) has
recently increased its quarterly cash dividend payment by 6% to 18 cents per
share, up from 17 cents per share paid in the last quarter. The new dividend
will be paid on Jun 10, 2013, to shareholders of record as of May 24, 2013.
Importantly, for the past 41 years Questar hiked its dividend as many as 41
times. Based on the closing price of $25.44 on May 10, 2013, the proposed
dividend affirms a yield of 2.8%. A steady dividend payout facilitates the
long-term strategy of the company to provide attractive risk-adjusted returns
to its stockholders.
The dividend hike reflects continued strong performance by the company, backed
by solid operating results, good investments and a diligent execution of its
Founded in 1922, Salt Lake City, Utah-based Questar operates with three
principal subsidiaries – Wexpro Company, Questar Pipeline, and Questar Gas
Questar, after the QEP Resources (NYSE:QEP) spin-off, has transformed itself
into a natural gas-operated energy company. The company focuses exclusively on
exploring natural gas resources while serving domestic and worldwide
Moreover, Questar enjoys one of the best credit ratings in the utilities
sector. This provides the company with a competitive advantage in accessing
capital at a reasonable cost.
On the flip side, Questar's inability to comply with various laws and
regulations and obtain fair and timely rate relief and requisite regulatory
approvals could hamstring future earnings and growth.
Questar currently retains a Zacks Rank #3 (Hold), implying that it is expected
to perform in line with the broader U.S. equity market over the next one to
In the utility gas distribution sector, Chesapeake (NYSE:CPK) is expected to
significantly outperform the broader U.S. equity market over the next one to
three months. It currently retain a Zacks Rank #1 (Strong Buy).
Get the full analysis of all these stocks by going to
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