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Zacks Bull and Bear of the Day Highlights: Triumph Group, Walter Energy, International Game Technology, Apple and Google
By: PR Newswire
Nov. 29, 2012 09:30 AM
CHICAGO, Nov. 29, 2012 /PRNewswire/ -- Zacks Equity Research highlights Triumph Group, Inc. (NYSE:TGI) as the Bull of the Day and Walter Energy Inc. (NYSE:WLT) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on International Game Technology (NYSE:IGT), Apple (Nasdaq:AAPL) and Google (Nasdaq:GOOG).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
We are upgrading our recommendation on Triumph Group, Inc. (NYSE:TGI) from Neutral to Outperform based on the huge organic growth the company has experienced on the back of high demand in the industry. Also, efforts of lowering costs, increasing margins and a strong balance sheet bode well for the stock.
The company's concerted efforts in achieving these positives would in turn increase shareholders value which is considered to be an added perk. TGI reported strong results in the second quarter 2013 with earnings of $1.57 per share, an increase of 36.5% year over year. Also, there was a huge jump in revenue of 18.7%, leading it to stand at $938 million.
Our long-term Outperform recommendation indicates that the company will beat the broader U.S. equity market over the next six to twelve months. Our $79.00 target price, 13.2x 2013 EPS, reflects this view.
Walter Energy Inc. (NYSE:WLT) posted lackluster results in the third quarter with both top and bottom lines lagging the Zacks Consensus Estimates. The global coal market downturn and softness in selling prices negatively impacted results.
The global economic stalemate is expected to linger, thereby dragging down the company's sales and profit. Declining sales resulting in coal stockpiles would prove unprofitable for the company in the short term. This, along with the company's narrow capex outlook for 2013 is expected to shake investor confidence.
We remain bearish for the company stock in the long run. Our $26.00 target price is based on 2.4x trailing 12-month cash flow per share.
Latest Posts on the Zacks Analyst Blog:
IGT's Cleopatra on Mobile
International Game Technology's (NYSE:IGT) popular slot game 'Cleopatra' is being made available on mobile devices by DoubleDown Interactive. The mobile-based Cleopatra is compatible with Apple's (Nasdaq:AAPL) iOS devices as well as with Google's (Nasdaq:GOOG) Android based devices, enabling the game to reach out to a large number of gamers.
This is DoubleDown Casino's second game in the mobile format, after Da Vinci Diamonds. IGT's DoubleDown Casino has been offering online versions of IGT's traditional casino-style games. Now, the company's expansion into the mobile gaming segment has diversified its revenue base. IGT is expected to release mobile editions of its popular titles such as ELVIS A Little More Action, Kitty Glitter and Wolf Run.
In the last reported quarter, IGT's top line had expanded 17% year over year, aided by strong performance from the interactive business and higher product sales. Interactive revenue was $53.9 million compared with $13.4 million in the year-ago quarter. Social gaming revenue was $35.8 million while IGTi revenue was $18.1 million in the reported quarter.
We believe that IGT's diversification in the mobile segment is a long-term positive strategy. According to market research firm BI Intelligence, the U.S. social gaming market (including mobile games) is expected to more than double from approximately $2.0 billion in 2011 to approximately $5.5 billion by 2015.
Though IGT is a comparatively new entrant in the online social and mobile gaming market, we believe that DoubleDown's strong product portfolio and customer base will provide it a competitive edge over other established players.
We believe that IGT will be benefited by new contract wins along with an improving domestic gaming environment, international expansion opportunities, an impressive product portfolio, reduced dependence on the domestic machine replacement cycle and strong growth from the interactive business going forward.
Additionally, the company is keeping pace with technology demands and has made headway with its IGT Cloud offering. We expect the IGT Cloud services to gain traction in the casino gaming industry, as it is expected to be well received by new casino properties, thereby improving the company's top line.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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 3-6 months.
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 long-term.
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.
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SOURCE Zacks Investment Research, Inc.
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