For Immediate Release
Chicago, IL - May 21, 2012 -
Zacks Equity
Research
highlights
Robert Half International
(
RHI
) as the Bull of the Day and
Kirkland's, Inc.
(
KIRK
) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on
MasterCard Inc.
(
MA
),
American Express
(
AXP
) and
Visa Inc.
(
V
).
Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678
.
Here is a synopsis of all five stocks:
Bull of the Day
:
We are upgrading our recommendation on
Robert Half International
(
RHI
) to Outperform from Neutral following robust first quarter 2012
earnings. The company's first quarter earnings of $0.34 per share
surpassed the prior-year earnings by 89% and the Zacks Consensus
Estimate by 21%.
Each of the business segments of Robert Half reported strong
revenue growth in the quarter. Besides revenue, earnings also
experienced a robust growth owing to the strong demand of personnel
in the technology and accounting sectors. Gross margins and
operating margins also improved on solid top-line results.
We are encouraged by management's efforts to reward its
shareholders through dividends and buybacks. Further, the improving
global economic condition has heightened demand for the company's
temporary and permanent staffing services and risk consulting and
internal audit services.
Bear of the Day
:
Kirkland's, Inc.
(
KIRK
) posted fourth-quarter 2011 earnings of $0.72 per share, which
missed the Zacks Consensus Estimate of $0.74. But it was above the
prior-year earnings of $0.66, fueled by strong sales during Harvest
and Christmas. High-rising prices of commodities as well as slow
recovery of global economy is negatively impacting the company's
margins.
The company has also lowered its earnings guidance for the first
quarter 2012 on the back of lower comparative sales during the
period. Moreover, overdependence on Chinese vendors poses a threat.
Hence we maintain an Underperform rating on the stock.
Based on 2012 earnings estimate of $1.05, the stock is trading at
13.0x compared to the industry average of 20.5x. Our target price
of $12.00 is based on approximately 11.4x our 2012 earnings
estimate.
Latest Posts on the Zacks
Analyst Blog
:
MasterCard Moves Ahead with Mobile Wallet
In line with the industry trend of expanding digital payments
services,
MasterCard Inc.
(
MA
) is preparing to bring a White Label Mobile Wallet solution
jointly with C-SAM, a non-US based provider of turnkey solutions.
The new solution comes just a week after the company launched
PayPass Wallet Services.
The offering will facilitate a quicker, secured and flexible
mode of payment to mobile operators, bankers and payment providers
across the Asia-Pacific, Middle East and the African region.
The alliance will allow MasterCard to combine its pre-paid
platform, offers, PayPass Wallet and informational services with
C-SAM's Mobile Transaction Platform ("MTP"). The joint solution
will come with huge promotional offers to attract a large number of
customers who want virtual payment services available on their
mobile phones.
The new platform will address the intricacies in operating
several mobile devices and its respective operating platforms and
simultaneously preserving the security and other third party
associations. With these services, the mobile operators and
financial institutions will be able to offer unparalleled services
to the customers.
With this initiative, MasterCard moves a step ahead of its peers
-
American Express
(
AXP
) and
Visa Inc.
(
V
) - in offering digital payment services. Both AmEx and Visa are
primarily focusing on the US market while MasterCard is on the
lookout for expanding its footprint in the international
market.
AmEx collaborated with Isis Mobile to provide Isis Mobile Wallet
to its customers in Utah and Texas later this year. Competing on
similar grounds, Visa entered into an agreement with Obopay
Disbursements to pay out electronic funds to a prepaid card.
MasterCard currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating. We also retain our long term
'Neutral' recommendation on its shares.
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.
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Continuous analyst coverage is provided for a universe of 1,150
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are six-month time horizons.
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AMER EXPRESS CO (AXP): Free Stock Analysis
Report
KIRKLANDS INC (KIRK): Free Stock Analysis
Report
MASTERCARD INC (MA): Free Stock Analysis Report
ROBT HALF INTL (RHI): Free Stock Analysis
Report
VISA INC-A (V): Free Stock Analysis Report
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