Electronic Arts, Airgas, General Motors, Ford Motor and Toyota Motor highlighted as Zacks Bull and Bear of the Day - ABC 12 – WJRT – Flint, MI

Electronic Arts, Airgas, General Motors, Ford Motor and Toyota Motor highlighted as Zacks Bull and Bear of the Day

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Zacks Investment Research, Inc.

CHICAGO, May 20, 2014 /PRNewswire/ -- Zacks Equity Research highlights Electronic Arts (Nasdaq:EA-Free Report) as the Bull of the Day and Airgas (NYSE:ARG-Free Report)  as the Bear of the Day. In addition, Zacks Equity Research provides analysis onGeneral Motors Co. (NYSE:GM-Free Report), Ford Motor Co. (NYSE:F-Free Report) and Toyota Motor Corp. (NYSE:TM-Free Report).

Zacks Investment Research, Inc., www.zacks.com

Here is a synopsis of all five stocks:

Bull of the Day:

The video game industry is an extremely competitive one and thanks to a rapidly changing marketplace-with the advent of more social games as well as tablet/phone platforms-many companies have been struggling to adapt. However, not all of the 'traditional' video game powers have struggled, as Electronic Arts (Nasdaq:EA-Free Report) has been soaring and it still remains positioned for more gains in the months ahead too.

Electronic Arts is one of the most famous developers and publishers of video game software and content, responsible for a variety of digital games under a number of categories. Arguably, the company is best known for having a hand in Madden NFL, The Sims, and Need for Speed franchises, though it has several other titles in a number of segments as well.

The stock has been an all-star performer over the past two years, as EA has appreciated by nearly 150% in the time frame. Plus, the stock has zoomed higher by over 50% just this year alone, making a pretty penny for those who have stayed in this growth story.

Yet with such amazing returns, investors have to be skeptical about a continuation of this trend. But if you look to recent earnings estimate revisions there is plenty of hope that EA can continue on this incredible streak for a bit longer.

Bear of the Day:

When we think of companies that have been hit hard by the wild weather of the first quarter, ones that generally come to mind are those in the retail, transportation or travel industries. Yet while these might be the most well-known losers of the weather, some companies in the chemical space were also hit hard by the uncertainty.

A great example of this trend is Airgas (NYSE:ARG-Free Report), a Pennsylvania-based provider of industrial, medical and specialty gases. The company blamed the weather for its recent earnings miss, as the company was projected to put up $1.20/share in earnings, but only delivered $1.15/share instead, largely thanks to the negative impact of the cold on its refrigerant business.

However, the weakness for Airgas, and other chemical companies too, could be more than just a weather related issue. Sluggish business conditions and some economic uncertainty could spell trouble for this stock in the near term, a worry that can be confirmed by recent earnings estimate revisions for ARG.

Analysts have become extremely bearish on ARG's prospects for both the near term and the long term as of late. In fact, not a single estimate has moved higher in the past 30 days for any of the time periods that we study.

The poor trend is especially apparent when investors zero in on the current year time frame, as 12 estimates have gone lower in just the past 30 days. The consensus has also moved sharply lower as a result of these estimate revisions, as the current year has gone from $5.45/share 30 days ago to just $5.11/share today.

Additional content:

GM to Pay Maximum Fine for Late Recall

General Motors Co. (NYSE:GM-Free Report) agreed to pay a fine of $35 million to the U.S. safety regulators due to the late recall of 2.6 million older-model small cars associated with 31 crashes and 13 front-seat fatalities due to faulty ignition switches. This is the maximum fine which the government can impose. However, it only constitutes one day's revenue of General Motors based on sales in the first quarter of 2014.

General Motors identified the switch problem in 2001. As a matter of fact, the engineers provided different ways to rectify the defect but none of them was accepted due to cost concerns. The company finally announced a recall in Feb 2014.

According to General Motors, a heavy key ring or uneven roads can cause the ignition switch of the recalled cars to shift away from the run position, thus turning off the engine and electrical power. In such a situation, the front air bags will not inflate in case of a crash.

The National Highway Traffic Safety Administration (NHTSA), the auto safety supervisory body of the U.S. government, is investigating General Motors' delayed recall. Lawfully, the automakers are supposed to alert the NHTSA about any safety concern in vehicles within five business days of recognizing the problem.

Thus, General Motors has been accused of breaking the law. Congress says that the fine to be imposed on the automaker should be raised to $300 million. Moreover, the consumer safety advocate demands for a Justice Department investigation to decide the penalty.

Earlier, automakers like Ford Motor Co. (NYSE:F-Free Report) and Toyota Motor Corp. (NYSE:TM-Free Report) have been fined for late recalls. In 2013, Ford had to pay a $17.4 million fine for the late recall of Ford Escape SUVs with defective gas pedals. Toyota also paid a lump sum fine for delayed reporting of safety issues in its vehicles.

General Motors currently holds a Zacks Rank #3 (Hold).

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

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. Click here to 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 EA - FREE

Get the full Report on ARG - FREE

Get the full Report on GM - FREE

Get the full Report on F - FREE

Get the full Report on TM - FREE

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://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


Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow


ABC12 Main Station

Mailing Address:
2302 Lapeer Road
Flint, Michigan 48503

Powered by 

All content © Copyright 2000 - 2014 WorldNow and WJRT. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.