Tesla Motors, Caterpillar, Anadarko Petroleum, Memorial Production Partners
and EPL Oil & Gas highlighted as Zacks Bull and Bear of the Day
CHICAGO, July 29, 2013
CHICAGO, July 29, 2013 /PRNewswire/ -- Zacks Equity Research highlights Tesla
Motors (Nasdaq:TSLA-Free Report) as the Bull of the Day and Caterpillar
(NYSE:CAT-Free Report) as the Bear of the Day. In addition, Zacks Equity
Research provides analysis ontheAnadarko Petroleum Corp. (NYSE:APC-Free
Report), Memorial Production Partners L.P. (Nasdaq:MEMP-Free Report) and EPL
Oil & Gas Inc. (NYSE:EPL-Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
2013 has been an incredible year for the automotive industry, but it has been
particularly outstanding for newcomer Tesla Motors (Nasdaq:TSLA-Free Report).
The electric car manufacturer has made a name for itself thanks to solid sales
and earnings that crushed estimates, while the cool factor of its vehicles
have also helped the firm to gain some recognition.
These factors have allowed TSLA's stock price to surge this year, as strong
results and optimism over electric car demand in the future pushed the stock
up to new heights. In fact, TSLA shares have added about 250% since the start
of the year, and over 340% in the trailing one year period, making the company
one of the hottest stocks in the market, and a favorite pick among growth
Given this incredible surge, many are likely wondering if the run can continue
for TSLA heading into the end of the year. If you look at analyst expectations
for the company though, there is plenty of reason to believe that TSLA can
keep this streak alive and put up some more solid gains.
Analysts remain extremely bullish on the company and we have seen some
estimate revisions higher in the past few weeks. This has helped to push the
current year consensus from a loss of 77 cents a share 30 days ago, to its
current level of a loss of 60 cents a share today.
Current quarter and next quarter estimates have also risen over the past
thirty days too, suggesting that analysts like the firm's prospects in the
short term as well.
This move higher in the estimates picture also helps to push the Earnings ESP
for the current quarter up to 16.67%. So, the firm could be poised to beat
estimates this quarter, at least when looking at this metric.
Bear of the Day:
Thanks to sluggish global growth levels, a number of names engaged in
commodity production have struggled this year. While most have focused in on
mining companies as a representation of this trend, firms in the machinery
segment—which often sell products to these commodity producers—have also been
In particular, investors have seen weakness in arguably the most famous firm
in this space, Caterpillar (NYSE:CAT-Free Report). The Illinois-based giant
and DJIA component has stumbled in this environment and it may have some
trouble in picking up the pieces, especially given how bearish many are on the
Caterpillar has given analysts plenty of reason to be bearish too, as
evidenced by the recent quarterly report. In the release, the firm fell well
short of the Zacks Consensus Estimate of $1.70/share, posting earnings of just
$1.45/share. Revenues also missed estimates, while sales were down across all
regions, including a 25% decrease in the Asia-Pacific segment
Even more troubling than this broad miss though, was the firm's reduced
outlook for the rest of 2013. CAT slashed its sales outlook range, and now
expects to earn just $6.50 a share this year, compared to an earlier
projection of $7.0/share in profits.
Will Anadarko (APC) Beat Earnings?
Anadarko Petroleum Corp. (NYSE:APC-Free Report) is slated to release its
second quarter 2013 earnings results after the market bell on Jul 29. Last
quarter, the company reported a positive earnings surprise of 17.39%. Let's
see how things are shaping up for the oil and gas operator for this
Factors to Consider This Quarter
Anadarko Petroleum's aggressive exploration programs at the deepwater Gulf of
Mexico will continue to drive growth. In addition, commencement of oil
production at the El Merck play in Algeria will add to the company's revenue
The company's Marcellus and Eagleford domestic plays are also expected to
record favorable production, accelerating returns. However, fluctuations in
commodity prices might affect Anadarko Petroleum's top-line in the second
Our proven model does not conclusively show that Anadarko Petroleum is likely
to beat earnings this quarter. This is because a stock needs to have both a
positive earnings Expected Surprise Prediction (ESP) (Read: Zacks Earnings
ESP: A Better Method) and a Zacks Rank of #1, 2 or 3 for this to happen. That
is not the case here as you will see below.
Negative Zacks ESP: The Most Accurate estimate stands at 90 cents while the
Zacks Consensus Estimate is higher at 91 cents. This comes to a difference of
Zacks Rank #3 (Hold): Anadarko Petroleum has a Zacks Rank #3 (Hold). This
combined with an ESP of -1.10% 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
Other Stocks to Consider
Here are some companies you may want to consider as our model shows they have
the right combination of elements to post an earnings beat this quarter:
Memorial Production Partners L.P. (Nasdaq:MEMP-Free Report), Earnings ESP of
+2.33% and a Zacks Rank #1 (Strong Buy).
EPL Oil & Gas Inc. (NYSE:EPL-Free Report), Earnings ESP of +4.17% and a Zacks
Rank #2 (Buy).
Get today's Zacks #1 Stock of the Day with your free subscription to Profit
from the Pros newsletter:
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are
likely to outperform (Bull) or underperform (Bear) the markets over the next
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