Markets

Cisco, Dave & Busters Entertainment, Google, Amazon and eBay highlighted as Zacks Bull and Bear of the Day - Press Releases

Chicago, IL - May 20, 2015- Zacks Equity Research highlights Cisco ( CSCO ) as the Bull of the Day and Dave & Busters Entertainment ( PLAY ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Google Inc. ( GOOGL ), Amazon ( AMZN ) and eBay ( EBAY ).

Here is a synopsis of all five stocks:

Bull of the Day :

In mid-April, I recommended buying Cisco ( CSCO ) at $28 as one of my top picks to capitalize on the major technology trend known as The Internet of Things.

Now that the stock has been bumped up to a Zacks #1 Rank Strong Buy, I'm still a fan of "the architect" of the worldwide web. Here was the argument in my Zacks Confidential report from April 13...

Now that Apple has launched its first smartwatch, the "Internet of Things" (IoT) will be getting a lot more press and investors will be busy trying to uncover the opportunities.

The Apple Watch is not the first wearable smart-device that can connect to the web and other devices, but it will certainly create the most buzz, fostering not only curiosity about the IoT, but also broader acceptance of the mysterious technology and its goal of storing and tracking more of your data and actions.

But the IoT is not just about connecting your home, car, appliances, devices and body to each other and to the web, it's about a revolution in industrial innovation and efficiency that will make the global economy significantly more productive.

How much more productive? How about $19 trillion worth.

Bear of the Day :

The earnings outlook for Dave & Busters Entertainment ( PLAY ) was looking tasty a few months ago and investors capitalized as the stock rallied over 60% from $21 to $34 since mid-December.

Headquartered in Dallas, Texas, the brand owns and operates over 70 large restaurants that combine full-service dining and entertainment options that allow guests to "Eat, Play, Drink, and Watch" all under one roof.

The company's sales mix, which splits evenly between (1) food and beverage and (2) amusement and games, generates above-average store-level profitability relative to casual dining peers. This is driven by its high margin amusement business which naturally has both lower cost-of-goods and labor requirements.

But earnings estimates actually came down in the last 60 days after their last earnings report.

Additional content:

The Curious Case of the Google 'Buy' Button

According to The Wall Street Journal , Google Inc. ( GOOGL ) could just be on the brink of introducing a "Buy" button alongside sponsored mobile search ads.

This means that when you search for your favorite perfume or book or any household gadget on your mobile, all you need to do is click on the "Buy" button and Google's product listing ads (which at present show prices and link to sites where you can purchase goods) will let you order things straightaway.

In simpler terms, Google will let you complete a transaction directly from the search results, rather than toggle between seller websites.

Why Is Google Buttoning Up?

It seems like Google is getting ready to face e-commerce giants Amazon ( AMZN ) and eBay ( EBAY ) by adding Buy buttons directly to its search results.

Google, for a few years, has tried really hard to keep pace in the mobile market as more and more customers omit its search engine and go directly to Amazon and eBay apps for their shopping needs. Making mobile shopping faster and more straightforward could help Google compete with these vertical search services (as they are officially known) in a better way.

According to Yory Wurmser of eMarketer, "They're trying to make their search more attractive."

How Will It Work?

Now when you search for products on Google, these buttons will only accompany sponsored results under a "Shop on Google" option and not for non-sponsored links returned by the algorithm. As soon as you hit the "Buy" button, a separate product page will load where users can customize their purchase and complete the transaction.

According to reports by WSJ, any product purchased will directly come from the retailers. However, this might worry a few of the big retailers as they might not have any real customer interaction.

Since Google wants to maintain a healthy relationship with these big retailers (as they happen to be its largest advertisers), it will give shoppers the option to subscribe to their marketing programs. This implies mailing lists and all. This way the company would be giving retailers user information including names and addresses.

Not only this, Google has also guaranteed retailers that the product landing pages will be branded with their names and will also feature links to more of their products.

According to the WSJ, Google also won't charge commission for their sales and will only charge for every person that clicks their links.

Reports suggest that the search giant put forward several payment options, "including digital payment methods from other providers." However, these details will remain with Google only (and not the retailers).

Last Word

Google has a number of reasons to roll out the button on mobile; the prime one being the fact that a growing number of people now perform searches on their phones than on desktops.

According to the WSJ, we might be able to see a Buy button or two as soon as in the coming weeks. Until it happens, we can continue to speculate as Google hasn't commented on this news.

Google currently holds a Zacks Rank #3 (Hold).

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

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. Click here to subscribe to this free newsletter today .

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

CISCO SYSTEMS (CSCO): Free Stock Analysis Report

DAVE&BUSTRS ENT (PLAY): Free Stock Analysis Report

GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report

AMAZON.COM INC (AMZN): Free Stock Analysis Report

EBAY INC (EBAY): Free Stock Analysis Report

To read this article on Zacks.com click here.

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.

In This Story

AMZN GOOGL PLAY EBAY CSCO

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More