The Zacks Analyst Blog Highlights: Best Buy, Microsoft, Wal-Mart Stores, Amazon.com and Joy Global

 
For Immediate Release

Chicago, IL – August 28, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Best Buy Co., Inc. (BBY-Free Report), Microsoft Corporation (MSFT-Free Report), Wal-Mart Stores Inc. (WMT-Free Report), Amazon.com Inc. (AMZN-Free Report) and Joy Global Inc. (JOY-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations.
Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

Best Buy Founder to Offload Shares
 
Richard Schulze, the founder and major shareholder of consumer electronics retailer Best Buy Co., Inc. (BBY-Free Report) plans to offload part of his shares as per the company’s regulatory filing with the Securities and Exchange Commission.

According to the filing, the sale will occur in a pre-arranged manner over a six-month period commencing from Oct 1, 2013. Shares will be divested in the open market at the prevalent market prices.

Schulze holds about 20% stake in Best Buy, which is nearly 70 million shares. However, the number of shares to be sold has not been disclosed yet.  

In the past, Schulze had tried to take over Best Buy in a private buyout deal. However, the deal did not materialize. Later, he became the company’s chairman emeritus (an honorary designation) and appointed two people to the board of directors.

So far, Best Buy has amassed a whopping year-to-date return of nearly 207.4%. Moreover, the stock performance has been bolstered by impressive quarterly results. Best Buy posted second-quarter fiscal 2014 earnings per share of 32 cents that surpassed the Zacks Consensus Estimate and rose 23.1% from the prior-year quarter.

At present, Best Buy is executing a turnaround program that includes a price match policy, a multi-channel strategy, a multi-year cost reduction program and the closing of certain big box stores. In the said quarter, Best Buy succeeded in lowering its costs by $65 million, thereby bringing the total reduction to $390 million out of $725 million targeted from the North American business.

Moreover, the company is leaving no stone unturned in wooing consumers and garnering incremental revenues, as is evident from its strategic initiative of opening "Samsung Experience Shops" within its stores. Taking its initiatives forward, Best Buy entered into a partnership with Microsoft Corporation (MSFT
-Free Report) to open “Windows Store” across its 500 outlets in the U.S. and additional 100 outlets in Canada.

Best Buy also completed the divestment of its 50% stake in Best Buy Europe to Carphone Warehouse Group, the joint venture partner in the same. The move will help this consumer electronic retailer to concentrate more on its U.S. operations, which has been facing stiff competition from industry bellwethers such as Wal-Mart Stores Inc. (WMT
-Free Report) and Amazon.com Inc. (AMZN-Free Report).

Currently, Best Buy caries a Zacks Rank #2 (Buy).

 
Will Joy Global (
JOY) Beat Estimates?
 
Joy Global Inc. (JOY-Free Report) will release its fiscal third quarter 2013 financial results before the market bell on Aug 28, 2013. In the prior quarter, this surface and underground mining equipment manufacturer reported a positive earnings surprise of 11.61%. Joy Global currently has a Zacks Rank #4 (Sell). Let’s see how things are shaping up at Joy Global prior to this announcement.

Factors to Consider This Quarter

The fortunes of mining equipment manufacturers are primarily tied to the development and activities of the miners. Miners are presently taking a very cautious step in developing new mines and are selecting projects which can achieve returns without a material improvement in market demand.

The cut in capital expenditure of the miners has resulted in a nearly 35% decline in original equipment bookings. Moreover, prices and margins of the mining equipment suppliers are under pressure as the commodities are in supply surplus.

A major chunk of Joy Global’s revenue comes from its top 10 customers. In the last fiscal year this group contributed nearly 38% of its total revenue. The loss of any of these customers would affect the top line of the company.  

On the positive side, the global demand for coal is expected to move up due to the addition of nearly 90 gigawatts of coal-based power generation plants in 2013. Miners will have to produce more coal to meet the surge in demand once the stockpiles are cleared. This might benefit mining equipment manufacturers like Joy Global.

Earnings Whispers

Our proven model indicates that Joy Global is likely to miss earnings this quarter. That is because a stock needs to have both a positive earnings Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here.

Negative Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at -5.80%.
 
Zacks Rank #4 (Sell): Joy Global’s Zacks Rank #4 further increases the possibility of a negative earnings surprise. 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 revisions.
 
 
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
 
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 long-term.

Continuous 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. Subscribe to this free newsletter today.

About Zacks

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 Pros.
 
Get the full Report on BBY - FREE
Get the full Report on MSFT - FREE
Get the full Report on WMT - FREE
Get the full Report on AMZN - FREE
Get the full Report on JOY - FREE
 
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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 affiliates.
 
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
 
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 assumed that 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 and is 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.

Read the analyst report on BBY

Read the analyst report on MSFT

Read the analyst report on WMT

Read the analyst report on AMZN.JOY

Zacks Investment Research



More From Zacks.com

--

Did you know that you can get stories like this on the Yahoo mail app?
Download it here.

Latest News

  • Tracy Morgan settles lawsuit with Wal-Mart for undisclosed sum
    Tracy Morgan settles lawsuit with Wal-Mart for undisclosed sum

    By Patricia Reaney NEW YORK (Reuters) - Comedian Tracy Morgan and other people injured in a crash with a Wal-Mart Stores Inc truck last year have reached an out-of-court settlement for an undisclosed sum with the world's largest retailer, court documents filed on Wednesday showed. Morgan, who starred in the TV show "30 Rock" and the late night comedy sketch show "Saturday Night Live," was badly injured and comedian James 'Jimmy Mack' McNair was killed in the June 7 accident on the New Jersey …

  • Twenty One Pilots' 'Blurryface' puts fresh faces atop Billboard
    Twenty One Pilots' 'Blurryface' puts fresh faces atop Billboard

    By Daina Beth Solomon Electro-pop pair Twenty One Pilots jumped to the top of the Billboard 200 chart for the first time in their short career on Wednesday, with the new album "Blurryface." In its debut week, the fourth album from the Ohio duo sold 134,000 albums, 68,000 songs and was streamed 9.7 million times, totalling 147,000 units, according to figures from Nielsen SoundScan. Twenty One Pilots, which broke out with the 2013 album "Vessel," is a relative unknown compared with other …

  • Sirius XM to face class action in Turtles copyright suit

    By Andrew Chung NEW YORK (Reuters) - A U.S. judge in California allowed a class action lawsuit to proceed on Wednesday against satellite-radio company Sirius XM Holdings Inc over the payment of royalties for songs produced before 1972, in a case that is being closely watched for its implications for digital media. The ruling by U.S. District Judge Philip Gutierrez marks another win for members of the 1960s band the Turtles, known for the hit "Happy Together," and means the company could face …

  • Few easy words to be had as U.S. Spelling Bee begins
    Few easy words to be had as U.S. Spelling Bee begins

    By Ian Simpson OXON HILL, Md. (Reuters) - Youthful contestants in the Scripps National Spelling Bee reacted with a combination of shock and awe to some of the words they were assigned as the annual competition began on Wednesday. Jeremy Ortmann, a 14-year-old eighth-grader from Hobe Sound, Florida, recoiled and laughed in disbelief when asked to spell "gesamtkunstwerk," a German word for a perfect work of art. "You were saving that one for me, weren't you?" he said to pronouncer Jacques …

  • Memphis bids musical farewell to blues legend B.B. King
    Memphis bids musical farewell to blues legend B.B. King

    By Mike Blake MEMPHIS, Tenn. (Reuters) - With music, singing and tears, hundreds of mourners in Memphis bade farewell to blues giant B.B. King as his casket, accompanied by his legendary guitar, Lucille, began a drive to his final resting place in Mississippi. Intermittent thunderstorms dumped rain on mourners, including local dignitaries and King friends and family, as they gathered for the procession down Beale Street, a historic avenue lined with blues clubs and restaurants. In front of …

  • Dwayne Johnson on shaking, quaking 'San Andreas'
    Dwayne Johnson on shaking, quaking 'San Andreas'

    By Alicia Avila LOS ANGELES (Reuters) - Hulking actor Dwayne "The Rock" Johnson creates a new save-the-day persona as a rescue pilot in California earthquake thriller "San Andreas," opening in U.S. theatres on Friday. This blows him out of the water. …

  • Emoji, meme, photobomb, twerk among new Merriam-Webster words

    FWIW, new words have been added to the dictionary. The abbreviation that stands for "for what it's worth" is among 1,700 new entries that have been added recently to the Merriam-Webster Unabridged dictionary, according to Merriam-Webster spokeswoman Meghan Lunghi and the unabridged dictionary's website. Other new words include "clickbait," a noun defined as "something (such as a headline) designed to make readers want to click on a hyperlink especially when the link leads to content of …

  • U2 tour manager found dead in Los Angeles hotel after show
    U2 tour manager found dead in Los Angeles hotel after show

    Irish rockers U2 said on Wednesday their longtime tour manager, Dennis Sheehan, died in Los Angeles where the band is performing part of its latest tour. The Los Angeles County Coroner said Sheehan, 68, died Wednesday morning of natural causes at a hotel in West Hollywood. Sheehan's death came hours after the first concert Tuesday night of a five-show run at The Forum in Los Angeles, part of a 20-city tour. …

Loading...