Dixie Group, Arctic Cat, Och-Ziff Capital Management Group, Six Flags
Entertainment and Calamos Asset Management highlighted as Zacks Bull and Bear
of the Day
CHICAGO, Feb. 25, 2014
CHICAGO, Feb. 25, 2014 /PRNewswire/ --Zacks Equity Research highlights Dixie
Group (Nasdaq:DXYN-Free Report) as the Bull of the Day and Arctic Cat Inc.
(Nasdaq:ACAT-Free Report) as the Bear of the Day. In addition, Zacks Equity
Research provides analysis on Och-Ziff Capital Management Group LLC
(NYSE:OZM-Free Report), Six Flags Entertainment Corp. (NYSE:SIX-Free Report)
and Calamos Asset Management Inc. (Nasdaq:CLMS-Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Extreme weather conditions are currently taking a toll on the housing industry
but once weather conditions improve, the industry may bounce back. Further,
upper-end residential segment of the industry remains resilient to higher
mortgage rates and it is expected to maintain its positive momentum during
The Dixie Group (Nasdaq:DXYN-Free Report) is a manufacturer and of marketer of
carpet and rugs to high-end residential customers through the Fabrica
International, Masland Residential and Dixie Home brands. The company began
its operations in 1920 and transitioned from textiles to floorcovering in the
In 2004, it refined its focus on upper-end markets—both commercial and
residential. The company is known for its innovative styling, design and
On Feb 19, DXYN reported its fourth quarter operating results. Sales jumped
34.7% year-over-year to $95.8 million--highest level since the company's
reconfiguration in 2003. The company recorded growth in all areas of the
business, with residential products up 30.5% and commercial products up more
Dixie's performance was significantly better than industry both in the
commercial and residential products for both the quarter and the year. During
FY 2013, 58% of the sales were derived from the residential market, while 42%
were from the commercial market.
Bear of the Day:
Estimates have come down after disappointing third quarter results, sending
ACAS to a Zacks Rank # 5 (Strong Sell).
About the Company
Headquartered in Thief River Falls, MN, Arctic Cat Inc. (Nasdaq:ACAT-Free
Report)is a designer, manufacturer and marketer of All-terrain vehicles (ATVs)
& Side-by-Sides, Snowmobiles, and Parts, garments & accessories.
During FY 2013, ATV and Side-by-Sides contributed 45% of sales and Snowmobiles
accounted for 39%.
On December 31, 2013, ACAT reported its Q3 2013 results--that missed both on
the top and bottom line. Net sales for the quarter increased 4% year-over-year
to $225.8 million. While ATV sales increased 12% to $78.2 million, driven
mainly by Side-by-Side sales, Snowmobile sales declined 4% to $118.1 million.
Gross profits declined for the quarter to $40.2 million from $50.8 million
reported in the prior-year quarter. According to the management, sales of
lower margin Yamaha snowmobiles and the weaker Canadian dollar and product mix
contributed to the decline.
Profitable Mix: Dividend + Zacks Rank #1
After high political and economic drama in 2013, the year 2014 began on a soft
note given the not-so-convincing emerging economies, the loss of steam in
stock markets and a severe winter that locked consumers indoors. Last Friday,
both the S&P 500 and Dow Jones Industrial Average shed approximately 0.2%,
while The Nasdaq Composite Index has fallen about 0.1%.
Despite volatility in the indices, market analysts' are hopeful that the U.S.
economy will gain strength as the year progresses and register GDP growth of
about 3%. Moreover, the scaling down of the monthly bond buying campaign is
hinting at an economic recovery. However, the statements are not enough to
boost investors' confidence.
Thus, investors will obviously prefer to bet their bucks in the safer
counters. Investors, in order to shield themselves from the upheavals the
financial world is susceptible to, will diligently choose their portfolio of
stocks that can give them the best returns. On that note, while building the
portfolio, one should not ignore the Dividend Yield, which can also enhance
the total return.
Investors prefer an income generating stock and a dividend paying stock is
always a preferable option. Meanwhile, keeping the hard cash in the bank's
locker is a much safer alternative than investing in stocks, so offering
higher return on stocks becomes obvious to compensate the risk undertaken.
Higher dividend growth companies have a better chance to attract investors
that in turn provides an impetus to the share price.
People looking for regular income from stocks are most likely to be inclined
toward those companies that have a track record of consistent and incremental
dividend payments. Although increasing the dividend remains one of the tools,
the company's fundamentals should also be factored in before arriving on an
investment decision. It would be a good idea to look at the stocks' Zacks Rank
before investing in them, as a solid rank indicates favorable estimate
revisions by analysts who are optimistic on the company ' s future
Thus we provide you a Profitable Mix: Dividend + Zacks Rank #1 Stock. Here we
discuss 3 Zacks Rank #1 stocks that can enrich your portfolio:
Och-Ziff Capital Management Group LLC (NYSE:OZM-Free Report) has a dividend
yield of 33.06% with long-term earnings growth expectation of 16.5%. The
company has witnessed favorable estimate revision in the last 30 days with the
Zacks Consensus Estimate for 2014 and 2015 surging 8.5% and 10.1%,
respectively. This New York-based institutional alternative asset management
company had registered positive earnings surprise over the trailing four
quarters with an average beat of 43.1%.
Six Flags Entertainment Corp. (NYSE:SIX-Free Report) has a dividend yield of
4.70% with long-term earnings growth expectation of 10%. This Grand Prairie,
Texas-based company has seen the Zacks Consensus Estimate for 2014 go up by
3.9%. This operator of regional theme, water, and zoological parks had
registered a positive earnings surprise over the trailing four quarters with
an average beat of 42.6%.
Calamos Asset Management Inc. (Nasdaq:CLMS-Free Report) has a dividend yield
of 4.37% with long-term earnings growth expectation of 10%. The company has
registered upward estimate revision in the last 30 days with the Zacks
Consensus Estimate for 2014 and 2015 increasing 1.9% and 7.1%, respectively.
This Naperville, Illinois-based diversified global investment firm had
registered positive earnings surprise over the trailing four quarters with an
average beat of 55.1%.
We believe that the above-mentioned stocks have strong fundamentals and growth
prospects that can quench investors' appetites for market winners. As U.S.
stocks look for a survival strategy, a sneak peek into the space for some
possible outperformers backed by a Zacks Rank #1 and a healthy dividend yield
could be handy for investors.
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
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