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Alleghany, Garmin, SeaWorld Entertainment, Royal Caribbean Cruises and Vail Resorts highlighted as Zacks Bull and Bear of the Day

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Chicago, IL - November 11, 2015- Zacks Equity Research highlights Alleghany ( Y ) as the Bull of the Day and Garmin ( GRMN ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SeaWorld Entertainment, Inc. ( SEAS ), Royal Caribbean Cruises Ltd. ( RCL ) and Vail Resorts Inc. ( MTN )

Here is a synopsis of all five stocks:

Bull of the Day :

Thanks to the recent jobs report and a solid consumer outlook, many investors are starting to believe in the prospect of a Fed rate hike. That is making the financial sector a go-to investing choice for many out there though there is one area of this market that is often overlooked by investors despite it being an excellent choice; insurance.

Insurance companies benefit from a Fed rate hike because they see increased income from their investment holdings in new bonds boosting the spread between longer and shorter term rates. This usually impacts life insurance companies more than most, but with muted inflation prospects it could be great news for companies in the broader insurance space like Alleghany ( Y ) as well.

Y in Focus

Alleghany operates in both the reinsurance and insurance segments, focusing its reinsurance business on property insurance while the insurance division focuses on specialty coverages as well as surety products in the commercial space. The company currently has a market cap of about $8 billion but due to its high per share price of just over $500/share it probably isn't the most widely held or traded security in the industry.

However, this could be a great opportunity for some investors to get in on a great name that could benefit in the insurance world. Analysts also have a high opinion of the stock as Y has seen rising earnings estimates as of late suggesting that those who follow the security the closest believe better things are coming down the pike for the company.

Y Estimates & Industry

Current year estimates have moved markedly in the right direction lately as the consensus EPS estimate has jumped from $28/share 30 days ago to $30.25/share today. This is a nearly 8% increase in the consensus estimate suggesting a solid trend for Y stock.

Bear of the Day :

Garmin ( GRMN ) was once a leader in technology thanks to its GPS devices which put location finding ability in the hands of the masses. But with GPS technology available in a host of smartphones now, Garmin has had to reinvent itself a little bit.

The company has expanded to other markets, including wearables, while it is still selling its traditional GPS devices too. But the growth really hasn't been there for GRMN and questions are once again starting to swirl over the stock. But while shares have come back a bit in recent trading, investors should look to recent earnings estimate revisions for how the stock might perform next.

GRMN Estimates

Analysts, who arguably are the people following the stock closer than anyone else, have been slashing their estimates for GRMN's earnings left and right. In fact, over the past month not a single estimate has gone higher for GRMN though nine have gone lower for the current quarter and 11 have gone lower for the current year.

The magnitude of these revisions has been pretty intense too, including a drop from 71 cents a share in EPS to 48 cents a share for the current quarter estimate, while the current year has seen a decline in its consensus of over 14% as well. Current EPS growth rates (year-over-year) are now abysmal, with the full year expected to decline by over 27%.

Additional content:

SeaWorld to Phase Out Killer Whale Shows in San Diego

SeaWorld Entertainment, Inc. ( SEAS ), during the investor day meeting on Nov 9, announced plans to eliminate the signature "Shamu" killer whale shows in San Diego, known as One Ocean. Instead, the company will start a production focusing on the natural behavior of whales and the conservation of orca whales.

The Florida-based company announced that the killer whale show will end in 2016. This comes after the negative publicity regarding the treatment of captive whales and prolonged scrutiny of its employee safety practices by animal rights activists and the threat of legislation to ban the public orca shows. This negative publicity has continuously lowered guests' attendance and hurt the company's revenues.

Management also announced that it is eyeing the resort business model to grow park attendance and boost sales. The company stated that it plans to expand properties in California, Florida and Texas. In fact, the company partnered with the California-based Evans Hotel Group to develop hotels in San Diego. SeaWorld also plans to develop new concepts and seasonal events, including a SeaWorld Rescue-themed roller coaster and holiday shows. Among these, the new Rescue the Ride attraction will be built in San Diego or the company's park in San Antonio, TX - and would be opened in 2017 or 2018.

We believe that these initiatives will boost sales. Lower attendance significantly hurt the second-quarter 2015 results as well as the full-year outlook. The impact continued well into the third quarter as the company posted lower-than-expected results on Nov 5 amid increased pressure and protests to discontinue killer whale shows.

SeaWorld Entertainment currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the sector are Royal Caribbean Cruises Ltd. ( RCL ) and Vail Resorts Inc. ( MTN ), which carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

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.

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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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ALLEGHANY CORP (Y): Free Stock Analysis Report

GARMIN LTD (GRMN): Free Stock Analysis Report

SEAWORLD ENTERT (SEAS): Free Stock Analysis Report

ROYAL CARIBBEAN (RCL): Free Stock Analysis Report

VAIL RESORTS (MTN): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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