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Arcelor Mittal, Ford Motor, Dixie Group, United Rentals and TTM Tech highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL - August 02, 2016 - Zacks Equity Research highlights Arcelor Mittal ( MT ) as the Bull of the Day and Ford Motor ( F ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Dixie Group ( DXYN ), United Rentals ( URI )andTTM Tech ( TTMI ).

Here is a synopsis of all five stocks:

Bull of the Day:

Arcelor Mittal ( MT ) operates as global integrated steel and mining company with a presence in more than 60 countries. Headquartered in Luxemburg with over 200,000 employees, the company is the world's leading steel and mining company. It operates a balanced portfolio of cost competitive steel plants across both the developed and developing world. In addition, Arcelor is the world's fourth largest producer of iron ore. The company is the Bull of the Day after an earnings beat and strength in the industry made the stock a Zacks Rank #1 (Strong Buy).

MT has a market cap of $20 Billion with a Forward PE of 27. The stock has Zacks Style Scores of "C" in Value, Growth and Momentum. The company sits in an industry that is ranked 12 out of 265 (Top 5%) in the Zacks Industry Rank after a string of strong EPS beats from companies within the sector.

Industry strength

A majority of steel companies have already reported earnings and have come well above expectations. Most steel stocks are much higher than they were six months ago. The steel ETF, VanEck Vectors Steel (SLX) is up over 80% for the year, led by US Steel, which is up 283% since February. MT was up more the 68% during this timeframe and after an impressive beat the stock has room to catch up to its competitors.

Bear of the Day :

Ford Motor ( F ) is a popular auto company that produces cars and trucks. The company also engages in manufacturing automotive components and systems and financing and renting vehicles and equipment. The stock is the Bear of the Day after being downgraded to a Zacks Rank #5 (Strong Sell) after poor earnings results last week.

Ford has a market cap of $50 Billion and a dividend of 4.74%. The stock sports pretty good Zacks Style Score, with an "A" in Value "B" in Growth and "B" in Momentum. However, after a big miss on EPS these scores might be coming down as 'peak auto' maybe be upon us.

Q2 results

The company reported Q2 EPS on the 28 th , with EPS seen at $0.52 versus the $0.60 expected. Revenue came in slightly better than expected, but the company cut their fiscal year 2016 industry outlook from 17.5-18.5 million units to 17.4-17.9 million units. They also narrowed their 2016 Industry volume to 90-92 million from 88-92 million.

Year over year sales were flat to lower in the Americas, slightly higher in Asia and up 15% in Europe. CEO William Clay Ford was upbeat and had some comments on the quarter: "We delivered another strong quarter one of our best second quarters ever and record pre-tax profits for the first half of this year. We remain committed to delivering another full year of strong profitability, even as we address some new risks and market challenges around the world. "

Investors weren't as upbeat as the stock fell from $14 to $12.50 premarket, a move of over 10%. The concern is that car sales have peaked and that automakers are running out of incentives to keep the sales going.

Estimate Revisions

Current and next quarters estimates have been coming down over the last 90 days. With September's estimates falling 12.2% and December's falling 4.7%. Analyst are in 100% agreement on lowering estimates with two analysts lowering the upcoming quarter over the last 30 days. While the long-term picture looks doesn't look disastrous, analysts will have to adjust these numbers if a negative trend begins.

Additional content:

Don't Understate the Role of Technology Today

The first week of any month is the same regardless of the passage of time. What matters most to stock traders? The all-important U.S. nonfarm payroll report.

Why? Nonfarm payroll is the major summary statistic on the performance of the entire U.S. economy.

In July, economist consensus looks for for +180K U.S. job additions after a spike to +287K in June. A Wednesday report from the ADP private payroll company for the U.S. looks to print a similar +160K.

If U.S. monthly job additions stay above +100K -- on a moving average basis over the past 3 months -- there is little to no worry about a U.S. recession. That looks to be the case for July.

On Thursday, a super-low weekly unemployment claims report looks for 265K. That's really, really low claims data, too.

Market actors don't talk often aboutthe U.S. insured unemployment rate.

This is more subterranean data. It shows economists how many people actually collected unemployment checks each week. Last week on July 28th, 2016 the 4-week moving average was 2,135,250. This makes for a 1.6% U.S. insured unemployment rate.

How low is that? The 1.6% mark for collecting checks is the lowest level for the U.S. insured unemployment rate average going back to November 11, 2000. That is the time of the top of the U.S. Tech/Internet bubble.

Amazing! Imagine how hot the U.S. labor market really is.

It's been said by many --The impact of technology is overstated in the short term and understated in the long term.

The latest on hot labor market data bears this out. According to a blog in Oklahoma, Technology delivers big for 2 areas inside the economy of today-

A. Communication with Customers

First and foremost, technology affects a firm's ability to communicate with customers.

In today's busy business environment, it is necessary for employees to interact with clients (increasingly) quickly and clearly.

  • Websites allow customers to find answers to their questions after hours.

  • Fast shipment options allow businesses to move products over a large geographic area.

  • When customers use technology to interact with a business, the business benefits. Better communication creates a stronger public image.

B. Efficiency of Operations

Technology also helps a business understand its cash flow needs and preserve precious resources such as time and physical space.

  • Warehouse inventory technologies let business owners understand how best to manage the storage costs of holding a product.

  • With proper technology in place, executives can save time and money by holding meetings over the Internet instead of at corporate headquarters.

My message: Technology use -- which emerged around the year 2000 -- reaches deeper and deeper into day-to-day activities of the U.S. and global economy here in 2016.

New Zacks Rank #1 Strong Buys:

As the U.S. nonfarm payroll report for July hits, look at U.S. stocks for the action:

(1) Dixie Group ( DXYN ) . This small cap commercial and residential carpet seller beat big on its EPS report last week. It's a Zacks VGM of A and captured a Zacks #1 Rank (Strong Buy) this week. The stock trades at below $4 a share.

(2) United Rentals ( URI ) . This building and construction industry stock is both a Zacks VGM of A and a Zacks #1 Rank (Strong Buy). The stock trades at $80 a share.

(3) Finally, take a look at the big +17% share price jump at TTM Tech ( TTMI ) made last week. The stock is a Zacks #1 Rank (Strong Buy) this week. This company still holds a Zacks VGM score of A after the leap, as its stock trades at $10 a share.

TTM Technologies, Inc. provides time-critical, one-stop manufacturing services for highly complex printed circuit boards. Its printed circuit boards serve as the foundation of electronic products such as routers, switches, computer memory modules and communications infrastructure equipment.

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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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ARCELOR MITTAL (MT): Free Stock Analysis Report

FORD MOTOR CO (F): Free Stock Analysis Report

DIXIE GRP INC (DXYN): Free Stock Analysis Report

UTD RENTALS INC (URI): Free Stock Analysis Report

TTM TECHNOLOGIE (TTMI): Free Stock Analysis Report

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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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