For Immediate Release
Chicago, IL - July 27, 2016 - Zacks Equity Research highlights Allied World Assurance Company ( AWH ) as the Bull of the Day and Essendant Inc. ( ESND ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on 58.com Inc. ( WUBA ) and Tuniu Corporation ( TOUR ).
Here is a synopsis of all four stocks:
The insurance industry is typically considered a pretty boring segment, but that does not mean that it cannot produce impressive returns for your portfolio. And that is just what Allied World Assurance Company ( AWH ) just did last week. That is why they are the Zacks Bull of the Day.
This Zacks Rank #1 (Strong Buy) is one of Bermuda's leading property and casualty insurers. The company, through its operating subsidiaries, offers property and casualty insurance and reinsurance on a worldwide basis. The principal operating subsidiaries of Allied World Assurance Company Holdings, Ltd have A Excellent ratings from A.M. Best Company and A- ratings from Standard and Poor's.
Recent Earnings Results
AWH reported Q2 16 earnings last week, and they absolutely annihilated both the Zacks Consensus Earnings and Revenue estimates. The company reported year over year gains in Net Income +1514.7%, Operating Income +220.5%, Underwriting Income +669.5%, cut their loss and loss expense ratio from 66.8% to 60.6%, and decreased their expense ratio from 32.4% to 31.8%.
According to Scott Carmilani, President and CEO, " I am very pleased with our results this quarter, which were attributable to strong performances across both the underwriting and investment portfolios. In particular, with a combined ratio of 92.3%, our North American Insurance business is showing the strength and results of our focused build out ."
Customers can be finicky, and shift their purchase preferences fairly quickly. This at times is a boon from some companies, but it can also create large stumbling blocks for a company as customers shift away from their products. This can be seen in the office products segment, and that is one of the reasons that Essendant Inc. ( ESND ) is the Zacks Bear of the Day.
This Zacks Ranked #5 (Strong Sell) is a wholesale distributor of business products. The Company offers technology products, traditional office products, janitorial and breakroom supplies, office furniture, industrial supplies and automotive aftermarket tools. It operates primarily in Dubai, United Arab Emirates. Essendant Inc., formerly known as United Stationers Inc., is headquartered in Deerfield, IL.
Recent Earnings Results
Essendant reported Q2 16 results last week, and they significantly missed both the Zacks Consensus Earnings and Revenue estimates. The company posted year over year losses in Net Income -56.7%, Operating Income -50.2%, Earnings Per Share -55.1%, Adjusted EBITDA -22.6%, and Adjusted Earnings Per Share -32.1%. Further management revised their FY adjusted ESP guidance from a range of $3.20-$3.40 to a range of $2.15-$2.30 per share.
According to Robert Aiken Jr., President and CEO, " In light of the challenges we faced in the quarter and our reduced outlook for the balance of the year, we are accelerating efforts to advance our strategy, improve margins and reduce costs. We plan to execute these actions while reducing our inventory levels over the balance of the year to improve the company's return on investment. Building on our core capabilities while increasing operating and working capital efficiency is the right path forward. With the common platform implementation of our office products and janitorial/sanitation businesses now complete, several large accounts wins on boarded and our industrial business making progress in its recovery plan, our company's core capabilities continue to offer a competitive advantage in the marketplace ."
Two Great Tech Stocks Seeing Immense Sales Growth This Year
Growth stocks are popular among investors who seek to earn large profits in shorter time frames. There is some additional risk which accompanies corporations that have high growth expectations, so it is important to find stocks which meet important growth criteria. One of these important factors include identifying candidates capable of seeing high sales growth. Sales are the lifeblood for any stock, and this is because top line growth goes a long way in fostering higher earnings levels.
Many companies promise high sales growth, but it is important to see that these firms have also proven themselves historically with regards to increasing revenue numbers consistently year after year. We've identified two great candidates who have a great sales outlook this year. They've also got a nice track record for growing sales over the years.
58.comInc. ( WUBA )
58.com is one of the largest online marketplaces serving local merchants and consumers in China. The company offers housing rental, recruitment, travel, catering, entertainment, and group-buying services. Essentially, the China-based company functions like Craigslist, and it has a wide reach across many businesses, consumers, and locations within China. WU BA stock is a Zacks Rank #2 (Buy), and you should expect more volatility from this stock since it has a beta of 2.21.
58.com has seen its sales grow by 721.8% since 2012, and the company has done well to increase its revenues in recent history as well. Between 2014 and 2015, WUBA saw its sales more than double, blossoming by 169.8% over the year. The growth story isn't expected to slow down this year either, as sales are projected to grow by 75.5%. The bottom line is expected to improve, and this is good since the company incurred a sizable earnings loss in 2015. The company has to do better with regards to managing SG&A expenses. Luckily, the company has topped EPS expectations over each of the last four quarters, beating by an average of 46.06% per quarter over that span of time.
Tuniu Corporation ( TOUR )
Tuniu is an online leisure travel company in China. It engages in providing packaged tours, organized tours, self-guided tours, and other travel related products and services. The company offers packaged tours across over 150 countries in addition to attractions within China. Tuniu is a Zacks Rank #2 (Buy) and it has a market cap of $1.09 billion.
Tuniu had sales of $322 million in 2013, and the company has grown its revenues by 266% since then. 2015 sales totaled $1.18 billion, and revenues grew by 107% last year. The company's market cap is trading for less than what the company generated in sales, and TOUR shares currently trade at a forward price-to-sales of 0.55. A price-to-sales under one may suggest that a stock is undervalued. Tuniu is trading at such a low multiple of its sales because it incurs a lot of expenses to foster sales growth. The company beat our EPS consensus estimate by 16.67% last quarter, so hopefully it continues to surprise investors as it heads into its second quarter earnings report in late August.
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About the Bull and Bear of the Day
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