For Immediate Release
Chicago, IL - May 23, 2012 -
) as the Bull of the Day and
Capella Education Co.
) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on
Time Warner Cable Inc.
Cablevision Systems Corp.
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day
We are upgrading our recommendation on
) to Outperform. The rail, marine and industrial company's first
quarter adjusted earnings surpassed the Zacks Consensus Estimate
and improved year over year, primarily on higher lease rates.
We expect higher lease rates to continue to remain a key growth
driver for GATX in the current year and beyond. In addition,
increased asset utilization through the reduction of idle rail cars
and the deployment of new rail cars will be accretive to the
company's long-term growth, given the growing rail freight
Further, GATX enjoys a healthy balance sheet and is committed to
enhance its shareholders value through strong dividend payments. We
are recommending an Outperform rating with a target price of $45,
based on 16.8x our earnings estimate for 2012.
Bear of the Day
Capella Education Co's
) first quarter 2012 earnings of $0.82 per share beat the Zacks
Consensus Estimate, it dropped 15% from the prior-year quarter due
to top-line weakness. Total revenues fell 1.8% due to a decline in
The company has been witnessing volatile enrollment growth since
the last few quarters due to challenging market conditions. The
company's brand-driven marketing strategy is not leading to a
desired improvement in enrollments. Increased marketing spend
associated with the strategy also remains a drag on margins.
The company provided a weak near-term enrollment outlook,
forcing us to reduce our estimates for both 2012 and 2013.
Moreover, the highly regulated nature of post-secondary education
in the US also remains a consistent overhang. We have therefore
downgraded our rating on the stock from Neutral to
Latest Posts on the Zacks
Cable MSOs Opt for WiFi Sharing
In a major move to counter competitive threat from telecom
service providers and other online video streaming providers, the
five largest cable operators in the U.S., including
Time Warner Cable Inc.
Cablevision Systems Corp.
), Cox Communications Inc., and Bright House Networks LLC have
entered into an agreement for free Wi-Fi platform sharing.
Subscribers of these cable MSOs will be able to access Internet
from their respective laptops, smartphones, tablets, and other
mobile devices through a nationwide shared network of more than
50,000 Wi-Fi hotspots in metro areas.
The five cable TV operators have created a new web access
network called "Cable WiFi". Using this network, subscriber of any
of these five cable TV operators can access Internet even if that
person is logging from outside his/her cable TV operators' home
At first, the user need to login simply using the credentials of
his own cable MSO's WiFi network. Within a few minutes, the
subscriber's device will be automatically connected to the Internet
once the person reach within the range of a participating WiFi
hotspot of any of these five cable TV operators.
Cable MSOs throughout the U.S. are facing increasing competition
from both telecom service providers and satellite TV providers.
Roaming Wi-Fi connectivity is likely to become a huge opportunity
for cable MSOs to minimize their respective customer churn rate.
The mobile Wi-Fi hotspot market is expected to become a
multi-billion USD opportunity within the next few years.
Several industry sources predicted that Wi-Fi enabled wireless
devices, such as phone, computer, and consumer electronics may
cross one billion mark by 2012. In addition to retail consumers,
the business enterprises are likely to become major contributor for
the growth of mobile Wi-Fi hotspot.
Get the full analysis of all these stocks by going to
About the Bull and Bear of the Day
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the markets over the next 3-6 months.
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COMCAST CORP A (CMCSA): Free Stock Analysis
CAPELLA EDUCATN (CPLA): Free Stock Analysis
CABLEVISION SYS (CVC): Free Stock Analysis
GATX CORP (GMT): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
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