Chicago, IL – July 27, 2015– Zacks Equity Research highlights Euronav NV(EURN) as the Bull of the Day and Allegheny Tech (ATI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onStarbucks Corporation (SBUX) and PepsiCo, Inc. ( PEP). Here is a synopsis of all four stocks: Bull of the Day: Euronav NV (EURN) is a crude tanker pure play, and is the third largest public operator of Suezmax and VLCC vessels. Currently, OPEC is producing high levels of crude, and is expected to continue this pattern over the foreseeable future. Euronav is extremely well positioned in the crude tanker market to take advantage of these increased levels of production. As long as OPEC continues to have high levels of production, demand for storage tankers will continue to remain at elevated levels. Further, due to low oil prices, demand has increased and the need for storage tankers has risen. Because of these factors, Euronav is the Zacks Bull of the Day. This Zacks Ranked #1 (Strong Buy) together with its subsidiaries, owns, operates, and manages a fleet of vessels for the transportation and storage of crude oil and petroleum products worldwide. The company operates through two segments: Tankers; and Floating Production, Storage, and Offloading/Floating, Storage, and Offloading (FPSO/FSO). As of April 27, 2015, it owned and operated a fleet of 53 double hulled vessels, including 1 ultra large crude carrier; 2 floating, storage, and offloading (FSO) vessels; 27 very large crude carriers; and 23 suezmaxes. In addition, its ship management services also comprise financial, information technology, human resources, and legal services; project management for new building supervision, including pre- and post-contract consultancy and technical support, as well as FSO conversions; commercial management; and operational management.
According to management, the “first quarter 2015 started strongly with a good winter market which was unaffected by the usual hiatus of the Chinese new year. The lower oil price opened up a contango in January which quickly closed as the lower price stimulated prompt demand which in turn lifted the price of physical oil for immediate delivery. Whilst this also increased the price of bunker fuel nevertheless owners benefitted from the increased demand for shipment.” This demand enabled Euronav to easily beat the Zacks Consensus Earnings Estimate, and post a positive earnings surprise of +22.73% in Q1. Bear of the Day : Allegheny Tech (ATI) negatively preannounced their Q215 forecast due to difficult conditions for their Flat Rolled Products, and in the oil and gas markets as well. Further, declining nickel prices, and high imports of Asian stainless steel were additional headwinds for the company. To compound matters, these conditions do not appear to be alleviated anytime soon. Due to these negative factors, Allegheny Tech is the Zacks Bear of the Day. This Zacks Rank #5 (Strong Sell) company produces and sells specialty materials and components worldwide. The company operates through two segments, High Performance Materials and Components; and Flat-Rolled Products. The High Performance Materials and Components segment provides various high performance materials, including titanium and titanium-based alloys; nickel-and cobalt-based alloys. The Flat-Rolled Products segment offers stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys in various product forms comprising plates, sheets, engineered strips, and precision rolled strip products, as well as grain-oriented electrical steel sheets. This segment serves oil and gas, chemical process industry, electrical energy, automotive, food processing equipment and appliances, construction and mining, electronics, communication equipment and computers, and aerospace and defense markets. The company sells its products through direct sales and independent representatives.
In their most recent earnings report, the company saw a net loss of $16.4 million. Management stated that the “Results were adversely affected by lower demand in both the Flat Rolled Products and High Performance Materials and Components segments. Sales declined 9% compared to the first quarter 2015.” Rich Harshman, CEO commented on the results stating, “This was a challenging quarter due to business conditions in the Flat Rolled Products segment and further weakening in demand from the oil & gas market in the High Performance Materials and Components segment “ Additional content: Starbucks, Pepsi to Collaborate in Latin America Starbucks Corporation (SBUX) recently announced a partnership agreement with PepsiCo, Inc. ( PEP) to market, sell and distribute ready-to-drink (RTD) Starbucks coffee and energy beverages in Latin America, starting in 2016. According to the agreement, Pepsi will use its expansive distribution network and local expertise in the region to sell and distribute Starbucks RTD beverages. These beverages will be available in 2016, across the Caribbean, Chile, Colombia, Costa Rica, Guatemala, Mexico, Panama, Peru, Puerto Rico and Uruguay.
Starbucks and Pepsi have been partners for over two decades. North American Coffee Partnership (NACP) is a joint venture between the two giants, which had been formed more than 20 years ago. The new agreement for the Latin American market will benefit from the innovation that NACP has developed over the years.
Starbucks has been operating in Latin America since 2002, having over 870 stores in 14 markets. Latin America is a very important market for Starbucks, since this is where the company gets a major portion of its Arabica coffee supply. Pepsi, on the other hand, has over 100 years of experience in the country. The recent agreement will thus leverage on the expertise of both companies. The agreement will strengthen and expand Starbucks’s foothold in the region and tap the huge RTD coffee market in the region.
Starbucks carries a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> 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. Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today. Find out What is happening in the stock market today on zacks.com.
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EURONAV SA (EURN): Free Stock Analysis Report
ALLEGHENY TECH (ATI): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
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