Zacks Bull and Bear of the Day Highlights: IAC, Rackspace Hosting, Barclays, Royal Bank of Scotland Group and UBS

 Zacks Bull and Bear of the Day Highlights: IAC, Rackspace Hosting, Barclays,
                     Royal Bank of Scotland Group and UBS

PR Newswire

CHICAGO, May 15, 2013

CHICAGO, May 15, 2013 /PRNewswire/ --Zacks Equity Research highlights IAC
(Nasdaq:IACI) as the Bull of the Day and Rackspace Hosting (NYSE:RAX) as the
Bear of the Day. In addition, Zacks Equity Research provides analysis on
Barclays PLC (NYSE:BCS), The Royal Bank of Scotland Group plc (NYSE:RBS) and
UBS AG (NYSE:UBS).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678.

Here is a synopsis of all five stocks:

Bull of the Day:

IAC (Nasdaq:IACI) recently delivered a big first quarter earnings beat on
rising revenue and expanding profit margins. Since the Q1 report, analysts
have risen their estimates significantly higher for both 2013 and 2014,
sending the stock a Zacks Rank #1 (Strong Buy).

Analysts also project strong growth for IAC over the next couple of years.
Despite this, shares trade at just 13x forward earnings, well below their
historical multiple.

IAC is an internet company with more than 150 brands and products focused in
the areas of search, applications, online dating, local and media. Its
portfolio of websites includes Ask.com, About.com, Match.com, HomeAdvisor.com
and Vimeo.com.

IAC reported strong first quarter results on April 30. Earnings per share came
in at 74 cents, well ahead of the Zacks Consensus Estimate of 53 cents.

Revenue rose 16% to $742.2 million, marking IAC's 13th consecutive quarter of
double-digit revenue growth. The 'Search & Applications' segment saw top-line
growth of 16% while Match.com rose 8%.

Meanwhile, operating income before amortization soared 24% as the operating
margin expanded 90 basis points to 15.2% of revenue.

Earnings estimates have risen sharply for IAC since the company's big Q1 beat.
The Zacks Consensus Estimate for 2013 is now $3.41, up from $3.00 before the
report.

Bear of the Day:

Rackspace Hosting (NYSE:RAX) reported its first quarter results on May 8.
Although EPS missed the Zacks Consensus Estimate by just a penny, analysts
revised their earnings estimates significantly lower for both 2013 and 2014.

This sent the stock to a Zacks Rank #5 (Strong Sell).

Despite a big selloff after the earnings report, expectations are still high
for Rackspace with shares trading at more than 50x forward earnings.

Rackspace Hosting is an IT hosting company that provides cloud computing
services. It is headquartered in San Antonio, Texas. The company was founded
in 1989 and has a market cap of $5.9 billion.

Rackspace reported its first quarter results on May 8. Earnings per share came
in at 19 cents, missing the Zacks Consensus Estimate by a penny. It was the
company's second consecutive earnings miss.

Net revenue rose 20% to $362 million, but this was well below the consensus of
$371 million.

Latest Posts on the Zacks Analyst Blog:

Barclay's LIBOR Case Dismissed

Barclays PLC (NYSE:BCS) won the dismissal of the U.S. lawsuit filed against it
by the stockholders. The shareholders accused Barclays of indulging in
activities which resulted in loss of money for them.

As per the U.S. District Judge, shareholders of Barclays' American depositary
shares failed to provide evidence that the British bank misguided them about
London Interbank Offered Rate (LIBOR). LIBOR supports transaction worth
trillions of dollars which are used to fix interest rates on credit cards,
student loans and mortgages. The investors failed to prove that the bank did
not disclose the potential liabilities.

Moreover, the judge pointed out that the stockholders were unable to provide
evidence related to alleged LIBOR manipulation by Barclays between Aug 2007
and Jan 2009 which caused investors to lose money through Jun 2012.

The lawsuit was filed by a group on behalf of American Depositary Shares (ADS)
purchasers. These ADS were bought between Jul 2007 and Jun 2012. Further, the
case was persuaded by the St. Clair Shores Police & Fire Retirement System in
Michigan and the Carpenters Pension Trust Fund of St. Louis in Missouri.

The judge said that the prosecutor is barred from amending the lawsuit since
they failed to acknowledge the earlier deficiencies identified in the second
complaint amended by them.

However, a probe is currently in progress by the U.S. and European regulators
so as to check whether the banks devalued LIBOR during the financial crisis to
emerge healthier.

Barclays was the first bank which settled with the authorities over alleged
LIBOR manipulation. The bank reached a settlement of $453 million with the
U.S. and European regulators in Jun 2012.

Recently, in Feb 2013,

The Royal Bank of Scotland Group plc

(NYSE:

RBS

) conceded to pay a penalty of $612 million to the Financial Services
Authority, Commodity Futures Trading Commission and Department of Justice to
resolve charges against the bank for its involvement in the manipulation of
LIBOR.

In Dec 2012, UBS AG (NYSE:UBS) also agreed to pay a penalty of $1.5 billion to
the U.S., U.K. and Swiss authorities to resolve charges against the bank for
its involvement in the manipulation of LIBOR.

This lawsuit related to Barclays is not a part of the U.S. litigation filed by
shareholders and others in relation to LIBOR manipulation against 16 banks.

Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are
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