For Immediate Release
Chicago, IL - March 16, 2012 - Zacks Equity Research highlights:
The Kroger Company
(
KR
) as the Bull of the Day and
KB Home
(
KBH
) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on
First Solar, Inc.
(
FSLR
),
FirstEnergy Corporation
(
FE
) and
NRG Energy, Inc.
(
NRG
).
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 upgraded our recommendation on
The Kroger Company
(
KR
) to Outperform following the company's fourth-quarter 2011
results. The quarterly earnings of $0.50 per share beat the Zacks
Consensus Estimate by a penny, and rose 8.7% from the prior-year
quarter. Total revenue climbed 7.7% during the quarter. Kroger now
expects fiscal 2012 earnings between $2.28 and $2.38 per share and
forecasts identical supermarket sales (sans fuel) growth of 3% to
3.5%.
We believe that a dominant position among the nation's largest
grocery retailers enables Kroger to sustain top-line growth, expand
store base, and boost market share. The company is also well
positioned to deliver higher earnings primarily through strong
super market sales (sans fuel) growth.
Kroger is also actively managing its capital and returning much
of its free cash to shareholders via share buybacks and dividends.
Moreover, management continues to deploy capital to concentrate
more on remodels, merchandising and other viable projects.
Bear of the Day
:
KB Home
(
KBH
) faces a fragile housing market. Increased availability of housing
alternatives may keep the company's earnings under pressure.
Furthermore, the company's housing market is highly concentrated,
which poses threats to its earnings performance.
The company did post a profit of $0.18 per share during the
fourth quarter of fiscal 2011, which was much higher than the Zacks
Consensus Estimate of $0.03. Nevertheless, the negative factors
have led us to downgrade the recommendation on shares of KB Home
from Neutral to Underperform with a target price of $10.00.
Our long-term Underperform recommendation on the stock indicates
that it will perform lower than the overall market. Our $10 target
price, 25.0X our 2013 EPS estimate, reflects this view.
Latest Posts on the Zacks
Analyst Blog
:
First Solar in Large Power Projects
First Solar, Inc.
(
FSLR
) has decided to build a photovoltaic (PV) solar power project in
Hagerstown, Maryland with a generation capacity of 20 megawatt
("AC"). The company will have full ownership of the Maryland Solar
plant.
Under a contract, the electricity and renewable energy credits
will be sold to a unit of
FirstEnergy Corporation
(
FE
). To generate clean and renewable energy, the plant will use First
Solar's advanced thin film PV modules. The energy generated on an
average will be able to provide power to approximately 2,700
Maryland homes. The power from the eco-friendly plant will displace
approximately 23,000 metric tons of CO2 annually which is
equivalent to taking 4,400 cars off the road each year.
First Solar is expected to begin the construction of the power
plant in the second quarter of 2012 with completion scheduled for
the fourth quarter.
In a recent agreement, First Solar cut a deal with
NRG Energy, Inc.
(
NRG
) under which it will build a 26 megawatt Avra Valley solar project
for the latter. Under a 20-year power purchase agreement, the
electricity generated from the project will be sold to Tucson
Electric Power.
In February 2012, the company reported fourth quarter and fiscal
2011 results. First Solar fell below the Zacks Consensus earnings
per share estimate of $1.57 by 31 cents to clock adjusted earnings
of only $1.26 in the reported quarter. First Solar's
quarterly revenues were $660 million, up $50 million from $610
million in the fourth quarter of 2010. Quarterly revenue however
fell behind the Zacks Consensus Estimate of $812 million. On a
year-to-year basis, fourth quarter module Average Selling Prices
("ASP") decreased 2% and third-party ASPs declined 24%.
Like its peers, the company is witnessing an oversupply of
photovoltaic products leading to a drop in ASPs. Also, the current
macro scenario does not bode well for the solar industry, which
thrives mainly on subsidies and grants. In this scenario, the
aforesaid utility-scale electricity power projects would help
counter the headwinds facing solar module producers in general.
The company presently retains a short-term Zacks #3 Rank (Hold).
We have a long-term Underperform recommendation on the stock.
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.
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 by
visiting
http://at.zacks.com/?id=7158
.
About Zacks
Zacks.com is a property of
Zacks Investment
Research
, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from
MIT Len knew he could find patterns in stock market data that would
lead to superior investment results. Amongst his many
accomplishments was the formation of his proprietary stock picking
system; the
Zacks
Rank
, which 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 at
http://at.zacks.com/?id=4582
.
Visit
http://www.zacks.com/performance
for information about the performance numbers displayed in this
press release.
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
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an
offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
FIRSTENERGY CP (
FE
): Free Stock Analysis Report
FIRST SOLAR INC (
FSLR
): Free Stock Analysis Report
KB HOME (
KBH
): Free Stock Analysis Report
KROGER CO (
KR
): Free Stock Analysis Report
NRG ENERGY INC (
NRG
): Free Stock Analysis Report
To read this article on Zacks.com click here.