Fortune Brands Home & Security, Sally Beauty Holdings, Nidec, SouFun Holdings and Gruma S.A.B. de CV highlighted as Zacks Bull

Fortune Brands Home & Security, Sally Beauty Holdings, Nidec, SouFun Holdings
     and Gruma S.A.B. de CV highlighted as Zacks Bull and Bear of the Day

PR Newswire

CHICAGO, Sept. 20, 2013

CHICAGO, Sept. 20, 2013 /PRNewswire/ --Zacks Equity Research highlights
Fortune Brands Home & Security, Inc. (NYSE:FBHS-Free Report) as the Bull of
the Day and Sally Beauty Holdings, Inc. (NYSE:SBH-Free Report) as the Bear of
the Day. In addition, Zacks Equity Research provides analysis ontheNidec
Corporation (NYSE:NJ-Free Report), SouFun Holdings Ltd. (NYSE:SFUN-Free
Report) and Gruma S.A.B. de CV (NYSE:GMK-Free Report). Here is a synopsis of
all five stocks:


Bull of the Day:

Who's benefiting from the housing recovery and the increase in home
remodeling? Fortune Brands Home & Security, Inc. (NYSE:FBHS-Free Report) is
expected to see double digit earnings growth this year and in 2014 as
consumers finally have started spending on their homes again. This Zacks #1
Rank (Strong Buy) raised full year guidance after a solid second quarter.

Fortune Brands Home & Security was created in Oct 2011 when it was spun off
from Fortune Brands. You probably know some of its brands. It makes products
such as MasterBrand cabinets, Moen faucets, Simonton windows and Therma-True
door systems. In the security area, it also sells the Master Lock brand.

On July 24, Fortune Brands Home & Security reported second quarter results and
surprised on the Zacks Consensus for the fourth quarter in a row. The
surprises are indicative of the turnaround in the housing market over that

Sales jumped 11% year over year to $1.04 billion with its home segments
posting double digit sales growth. Kitchen & Bath Cabinetry sales rose 13%
while Plumbing & Accessories grew 15%. It also saw some positive signs in its
windows business.

Security & Storage sales were flat even as security sales rose 4%. It was
offset by lower tool storage sales but it is repositioning that business.


The U.S. consumer is becoming stingy on where she shops as Sally Beauty
Holdings, Inc. (NYSE:SBH-Free Report) became the latest retailer to warn that
traffic wasn't as strong as anticipated over the summer. Full year estimates
are falling on this Zacks Rank #5 (Strong Sell).

Sally Beauty sells beauty supplies at 4,500 stores around the world. It offers
6,000 products for hair, skin and nails. It also sells 9,800 professionally
branded beauty products through its Beauty Systems Group stores, targeted
towards professional beauticians and salons.

On Aug 1, Sally Beauty reported its fiscal third quarter results and missed
the Zacks Consensus by a penny. Earnings were $0.42 compared to the Zacks
Consensus Estimate of $0.43. It was the third consecutive earnings miss.

Net sales rose 2.8% but that was on strength in the international division.
Same store sales growth was just 0.7% compared to growth of 5.2% in the year
ago quarter.

Traffic at BSG and Sally International was healthy but store traffic from
non-Beauty Club Card customers in the U.S. was "soft."

The company was specifically going to target these non-Beauty Club Card
customers and was "optimistic" that traffic would recover over the next few

Additional content:

3 Must-Have Stocks for a Zero-Taper Recipe

Ending speculations about a partial withdrawal of the economic stimulus or QE3
tapering, the Fed surprised the world with its decision to continue the
$85-billion monthly bond-buying program until at least the economy offers some
more positive vibes. The 'no-taper' decision was particularly shocking given
that the Fed Chairman had earlier hinted about his intentions to start
tapering in September and gradually phase it out by 2014.

The equity market reacted positively and the news sent stocks soaring with the
benchmark U.S. S&P 500 index closing at a record high at 1725.52 (up 1.22%).
As stocks continue to move north, let us cherry pick some must-have stocks
with strong fundamentals. However, before we zero-in on a handful of priceless
stocks, let us recap the various turn of events over the past few months.

Factors that Pulled-Off the Tapering Plug

The Fed cited several macroeconomic headwinds, including high unemployment
rate, low inflation, rising mortgage rates and a looming budget standoff as
key factors that triggered its no-tapering decision.

Although unemployment rate dropped to its lowest level since Dec 2008 to 7.3%,
the U.S. economy added just 169,000 jobs in August as job growth was less than
expected. The drop in unemployment rate was primarily due to a 35-year-low
labor participation rate of 63.2%, as most Americans stopped looking for a

Labor Department data further revealed that job openings hit their lowest
level in six months in July to 3.69 million. It is important for the broader
economy to have a healthy employment rate as much of the economic progress
hinges on its labor market. Consequently, the Fed intends to maintain minimal
interest rates until the unemployment rate falls at least to 6.5%.

On the other hand, mortgage rates have skyrocketed in the recent past amid Fed
taper mayhem, threatening to derail the healthy momentum in the housing
market. The housing sector has been one of the catalysts for the economic

Freddie Mac data reveal that the rate on a 30-year fixed mortgage loan has
increased to 4.51% as of Aug 29, from a Nov 2012 low of 3.31%. Higher mortgage
rates coupled with increasing home prices are increasingly making it difficult
to refinance and buy a new home, thereby somewhat affecting the housing
recovery in the U.S. 

In addition, inflation, as measured by the personal-consumption-expenditures
price index, has also remained healthy at 1.4% in July. The Fed had earlier
observed that low inflation is a risk to healthy economic performance and
consequently weak inflation data further gives it leeway to lift the economy
with near-zero interest rates and bond purchases.

Furthermore, the stage is again set for a showdown this autumn when the
Congress would meet to raise the debt ceiling and discuss other budgetary
issues and spending cuts. If an amicable solution is not reached between the
warring Republicans and Democrats, economic growth could be hampered --
leading to serious consequences for the financial markets, including a
possible downgrading of the sovereign credit rating. By deciding to continue
with its economic stimulus program, the Fed, therefore, decided to avoid the
risk of putting the government in jeopardy.

The Market Response

As the Fed deferred the dreaded tapering program, global equity markets and
gold prices went up, while the U.S. dollar and bond yields dropped. While the
Dow Jones industrial average was up 115.28 points (0.74%) to 15,645.01, the
Nasdaq Composite Index was up 25.59 points (0.68%) to 3,771.29 following the

The BNYMellonAsia ADR Index gained 2.6% -- the highest such tally realized
since June 2008, and the MSCI Latin American stock index climbed 2.7% to
3,428.45. The benchmark BSE Sensex of India was up 3.43% or 684 points on Sep
19. Gold prices rose over 4% on the news – the largest single-day gain since
Jun 2012.

The U.S. dollar index fell to 80.376 – the lowest since Feb 20, while the euro
soared to a seven-month high of $1.3486. The dollar fell to 97.98 against the
yen on the news. The yield on 10-year U.S. Treasury, which hit a two-year high
this month at 3.0%, fell to 2.69% on Wednesday.

3 Emerging Market Stocks to Benefit

Emerging economies have largely been the beneficiaries of Fed's largesse over
the years. Cash pumped in the emerging markets through the stimulus program in
the U.S. were primarily utilized to plug funding deficits and used for
infrastructure projects to fuel further growth.

Amid such an encouraging performance by the equity market across most indices
in the recent times, there are certain emerging market stocks with attractive
valuation metrics backed by a solid Zacks Rank #1 (Strong Buy). Let's take a
closer look at these companies that appear to be well positioned to benefit
from the 'no-taper' decision.

Nidec Corporation (NYSE:NJ-Free Report): Headquartered in Kyoto, Japan, Nidec
manufactures and sells industrial electric equipments like hard disk drives
spindle motors and other small precision motors for optical disk drives, laser
printers, copiers, polygon scanners, electronic cooling fans, refrigerators,
mobile phones, digital video recorders, automobiles and other applications.
The stock is trading at a forward P/E of 17.57x and has a long-term earnings
expectation of 18.54%.

SouFun Holdings Ltd. (NYSE:SFUN-Free Report): The company trades at a forward
P/E of 16.98x and has a long-term earnings expectation of 39.81%. SouFun
operates a real estate Internet portal, and a home furnishing and improvement
website in the People's Republic of China.

Gruma S.A.B. de CV (NYSE:GMK-Free Report): Headquartered in San Pedro Garza
García, México, the company produces and sales corn flour, wheat flour,
tortillas and other related products. Its product portfolio includes rice,
oats, packaged tortillas, grits, snacks, tortilla chips, corn chips and potato
chips. Gruma has a forward P/E of 30.99x.

The equity market perhaps is currently passing through a stage of maturity and
the euphoria is likely to continue in the short term. As the U.S. stocks
continue their unrelenting rally of reaching new highs, this is perhaps the
most opportune time to own such high-potential stocks with strong fundamentals
that pledge a healthy ROI.

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