CHICAGO, July 31, 2014 /PRNewswire/ -- Zacks Equity Research highlights Lithia Motors, Inc. (NYSE:LAD-Free Report) as the Bull of the Day and DryShips Inc. (Nasdaq:DRYS-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onYelp Inc. (NYSE:YELP-Free Report), Facebook (Nasdaq:FB-Free Report) and Twitter (NYSE:TWTR-Free Report).
Here is a synopsis of all five stocks:
Lithia Motors, Inc. (NYSE:LAD-Free Report) beat again as both new and used car sales kept humming along. This Zacks Rank #1 (Strong Buy) is still expected to grow earnings by the double digits both this year and next as the auto market remains red hot.
Lithia is one of the largest automobile retailers in the United States with 101 stores in 12 states. It sells 28 brands of new and used cars as well as operates repair and maintenance.
It serves both urban and rural markets and is therefore a good barometer of the nationwide economy.
On July 23, Lithia reported second quarter results and beat the Zacks Consensus by 7%. Earnings were $1.34 compared to the Consensus of $1.25.
Anyone following the company shouldn't have been surprised by yet another beat because it has only missed once in the last 5 years and that miss was all the way back in 2010.
DryShips owns 42 drybulk carriers and tankers and ships worldwide. It also owns and operate 11 ultra deepwater drilling units.
Drybulk shipping was hot prior to the recession but the industry overbuilt and that pushed rates down. It is one of the few industries that has yet to recover.
It's been a tough couple of years for DryShips. The last time the company was profitable was in 2011 when it made $0.43.
Last year, it lost $0.28 per share.
While the analysts started out more hopeful for 2014, that hope has begun to fade.
The 2014 Zacks Consensus Estimate has sunk to just $0.04 from $0.20 ninety days ago. The story is the same for 2015 with the Zacks Consensus Estimate sliding to $0.27 from $0.45.
DryShips is expected to report earnings on Aug 5 after the market closes. It doesn't have a track record of beating the estimate, however. It's last beat was in 2011.
Yelp's Earnings Review: Awesome!
Yelp beat the Zacks Consensus Earnings Estimate of $-0.03, by turning a profit for the first time in company history, posting an EPS of $0.04. More impressively, Yelp beat the Zacks Consensus Revenue Estimate of $86.3 million by posting revenues of $88.8 million.
Besides destroying the Zacks estimates for earnings and revenue, the company stated that they saw a 27% increase in monthly unique visitors up to 138 million, exceeding the expected 135 million. Moreover, sales increased 61% to $88.8 million, beating the expected $86.3 million. These amazing numbers caused Yelp to increase guidance for Q314, and FY 2014. Q314 revenue guidance was raised from $95.4 million to between $98 million and $99 million. Management also raised guidance for FY 2014 from between $363 million to $367 million to a range of $372 million to $375 million.
Another segment that was receiving a lot of attention was the growth of Mobile monthly uniques. Well, that was a smash hit too, rising 51% to 68 million.
During the regular trading day, Yelp rose 8.77%, and has continued to rise in after-hours trading. The stock is up over 5% on high volume in after-hours activity.
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.
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.
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.
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.
SOURCE Zacks Investment Research, Inc.