Pilgrim's Pride, Liquidity Services, Blackstone Group, Barclays and UBS
highlighted as Zacks Bull and Bear of the Day
CHICAGO, Aug. 22, 2013
CHICAGO, Aug. 22, 2013 /PRNewswire/ --Zacks Equity Research highlights
Pilgrim's Pride (Nasdaq:PPC-Free Report) as the Bull of the Day and Liquidity
Services (Nasdaq:LQDT-Free Report) as the Bear of the Day. In addition, Zacks
Equity Research provides analysis ontheThe Blackstone Group L.P. (NYSE:BX-Free
Report), Barclays PLC (NYSE:BCS-Free Report) and UBS AG (NYSE:UBS-Free
Here is a synopsis of all five stocks:
Bull of the Day:
Pilgrim's Pride (Nasdaq:PPC-Free Report) recently crushed earnings and still
has a very strong outlook. It is a Zacks Rank #1 (Strong Buy). It is the Bull
of the Day.
I wrote about PPC a little over a month ago as the Bull of the Day. This is a
link to that July 12 article. Since PPC was the Bull of the Day back in July,
it has appreciated more than 10% and posted some solid earnings.
With a 19% share of the domestic market, Pilgrim's Pride has a firm grip on
second place behind Tyson's 22%. The 36 million bird weekly capacity also
tells you that plenty of people are eating chicken.
Pilgrim's Pride produces, processes and markets fresh, frozen, and value-added
chicken products in the United States, Mexico, and Puerto Rico. The company
was founded in 1945 and is headquartered in Greeley, Colorado. As of December
28, 2009, Pilgrim's Pride Corporation operates as a subsidiary of JBS USA
Looking to the earnings history, we see a stock that has beaten the number in
three of the last four most recent reports. The most recent quarter was a miss
a big beat.
The company reported earnings of $0.74 on July 31 when the Zacks Consensus
Estimate stood at $0.56. That translates into a beat of $0.18 or a positive
earnings surprise of more than 32%. In the session following the report, the
stock increased by 9%.
Bear of the Day:
Liquidity Services (Nasdaq:LQDT-Free Report) has seen estimates for 2013 and
2014 continue to fall throughout the year. A recent big move lower has pushed
the Zacks Rank to the lowest level. LQDT is a Zacks Rank #5 (Strong Sell). It
is the Bear of the Day.
One big reason estimates continue to fall is that the company guided analysts
lower following the most recent earnings release. The company told Wall Street
they expect earnings per share of between $0.39 and $0.43, but the Wall Street
Consensus for the quarter was $0.46.
Liquidity Services operates various online auction marketplaces for surplus,
salvage, and scrap assets. The company's auction marketplaces include
liquidation.com that enables corporations to sell surplus and salvage consumer
goods and capital assets; govliquidation.com, which enables selected federal
government agencies to sell surplus and scrap assets; and govdeals.com that
enables local and state government entities, including city, county, and state
agencies, as well as school boards and public utilities to sell surplus and
salvage assets. Liquidity Services was founded in 1999 and is headquartered in
Washington, District of Columbia.
LQDT is a prime example of why you cannot put too much faith in a company that
is always beating the number. Seems they have topped the Zacks Consensus
Estimate in each of the last seven quarters, but did they really? The last
three quarters were all beats of a penny, and the most recent beat came after
the company lowered guidance in the middle of the quarter.
Things were much better at the end of 2011 and the start of 2012. The company
was beating the number soundly, including beats of 39% and 45% for the
December 2011 and March 2012 quarters. LQDT was a big winner for subscribers
of Home Run Investor, a service that looks for aggressive growth from small
cap stocks, during that period of outperformance.
Blackstone Bids to Acquire Tysan
In an effort to expand its operations in China, Blackstone Real Estate
Partners Asia fund -- The Blackstone Group L.P.'s (NYSE:BX-Free Report) real
estate arm -- is planning to acquire Hong Kong listed construction company,
Tysan Holdings Limited. Blackstone plans to purchase Tysan for about $322.6
million (2.5 billion Hong Kong dollars). Additionally, Barclays PLC
(NYSE:BCS-Free Report) is expected to act as an advisor for Blackstone on the
Blackstone's real estate arm was formed in 2013. Following its formation, this
would be the first investment by the company's first Pan-Asia property fund.
Moreover, the company is targeting $4 billion worth of investment.
Additionally, it plans to focus mainly on Australia as well as Asian countries
that include China, India and Japan.
Blackstone has already made investments in the real-estate development
business in various cities of China that include Shanghai, Dalian, Nantong and
On the other hand, Tysan Holdings is mainly engaged in the development and
investment in residential properties in the cities of Shanghai, Tianjin and
Shenyang. Moreover, it has a construction business in Hong Kong along with two
service residence projects in Shanghai.
Earlier, between 2010 and 2013, the Chinese government had resorted to
stringent rules and regulations in the housing sector. However, due to the
fragile growth of the Chinese economy, the real estate sector turned into a
profitable investment, thus resulting in relaxation in the real-estate rules
by Chinese policy makers. Further, this led to an escalation of property
prices in China. These factors made investment in China more lucrative,
thereby attracting foreign investments in the real-estate sector.
) announced its plan of entering into an agreement with the district
government in Shanghai and an insurance company in order to start a
public-housing investment fund. This fund would raise money from both public
and private investors in an attempt to assist China to build low-cost houses.
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
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from
Zacks Equity Research about the latest news and events impacting stocks and
the financial markets.
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 analyst 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. Click here to subscribe to this
free newsletter today.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978. The later formation of the Zacks Rank, a proprietary stock picking
system; 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
Get the full Report on PPC - FREE
Get the full Report on LQDT - FREE
Get the full Report on BX - FREE
Get the full Report on BCS - FREE
Get the full Report on UBS - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
Zacks Investment Research is under common control with affiliated entities
(including a broker-dealer and an investment adviser), which may engage in
transactions involving the foregoing securities for the clients of such
Zacks Investment Research
800-767-3771 ext. 9339
Zacks.com provides investment resources and informs you of these resources,
which you may choose to use in making your own investment decisions. Zacks is
providing information on this resource to you subject to the Zacks "Terms and
Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment
is the potential for loss. This material is being provided for informational
purposes only and nothing herein constitutes investment, legal, accounting or
tax advice, or a recommendation to buy, sell or hold a security. No
recommendation or advice is being given as to whether any investment is
suitable for a particular investor. It should not be assumedthat any
investments in securities, companies, sectors or markets identified and
described were or will be profitable. All information is current as of the
date of herein andis subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment
Research does not engage in investment banking, market making or asset
management activities of any securities. These returns are from hypothetical
portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced
monthly with zero transaction costs. These are not the returns of actual
portfolios of stocks. The S&P 500 is an unmanaged index. Visit
http://www.zacks.com/performance for information about the performance numbers
displayed in this press release.
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.