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Commercial Vehicle Group, Houlihan Lokey, Johnson & Johnson and Canadian Imperial Bank of Commerce highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL - June 21, 2016 - Zacks Equity Research highlights Commercial Vehicle Group ( CVGI ) as the Bull of the Day and Houlihan Lokey ( HLI ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Johnson & Johnson ( JNJ ) and Canadian Imperial Bank of Commerce ( CM ).

Here is a synopsis of all four stocks:

Bull of the Day:

Commercial Vehicle Group ( CVGI ) absolutely crushed the Zacks Consensus Estimate and is now benefiting from the "post earnings drift" higher. The stock is a Zacks Rank #1 (Strong Buy) and today it is the Bull of the Day.

The Numbers

CVGI beat the Zacks Consensus Estimate of a loss of $0.09 by $0.19 for a 211% positive earnings surprise. The topline was equally as strong with the company reporting revenues of $180M and that was $15M more than expected for a 9% positive revenue surprise.

As a result of the great performance Wall Street sent shares of CVGI higher by more than 19% in the session following the release.

Description

Commercial Vehicle Group sells various cab related products and systems for Trucks and busses Commercial Vehicle Group, Inc. was founded in 2000 and is headquartered in New Albany, Ohio.

Earnings History

The most recent beat was nice, not just because of its size but also because it ended a streak of three straight misses. The company had not topped the Zacks Consensus Estimate since the March 2015 quarter when an eight cent beat was good for a positive earnings surprise of 160%.

Estimates

The thing about a huge beat like the most recent one is that it can really change the outlook. The Zacks Consensus Estimate was calling for a loss of $0.16 in April, but following the beat the number flipped to a gain, and a big one at that. We are now looking for a $0.13 gain and that is a huge $0.29 move.

The 2017 Zacks Consensus Estimate flipped from a loss of $.011 to a gain of $0.15. Again, another big move there too, and that comes with even less visibility.

Valuation

The valuation is a little stiff for CVGI. 37x forward PE is sort of big especially when the industry average is only 9.5x. The price to book multiple of 2.1x is just a little ahead of the 1.7x industry average. The price to sales multiple is the only stat that I tend to look at that shows this stock trading at a discount. CVGI trades at 0.2x price to sales multiple, while the industry average is 0.6x.

Bear of the Day :

Houlihan Lokey ( HLI ) posted back to back misses of the Zacks Consensus Estimate. That alone will not make a stock the Bear of the Day, so let's figure out why the stock is now a Zacks Rank #5 (Strong Sell) and the Bear of the Day.

The Numbers

HLI missed the Zacks Consensus Estimate of $0.45 by $0.02 for a 4.4% negative earnings surprise in the most recent quarter.

Description

Houlihan Lokey is an independent investment bank with focus on mergers and acquisitions, financings, financial restructurings and financial advisory services.

Earnings History

Usually when a stock is the Bear of the Day, the earnings history is filled with misses. This is also the case for HLI, as there are two misses in the only three quarters that have been reported.

Estimates

Here is the real reason the stock is a Zacks Rank #5 (Strong Sell) and the Bear of the Day. The Zacks Consensus Estimate has fallen steadily over the last few months. The FY16 estimate stood at $1.84 in April but fell to $1.75 in May and has remained there throughout the month of June.

Next year has not seen any movement in the estimate that started as $2.02 in September of last year.

Additional content:

Top Stock Picks for the Week of June 20 th

Johnson & Johnson ( JNJ ) is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. The Company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Its Consumer segment offers products for use in the baby care, skin care, oral care, wound care, and women's health fields, nutritional and over-the-counter pharmaceutical products. The company's Pharmaceutical segment provides various products in the areas of anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, thrombosis, vaccines, and infectious diseases. Its Medical Devices and Diagnostics segment offers electrophysiology and circulatory disease management products; orthopedic joint reconstruction, spinal care, neurological, and sports medicine products; surgical care, aesthetics, and women's health products. Johnson & Johnson is based in New Brunswick, New Jersey.

Canadian Imperial Bank of Commerce( CM ) is a leading North American financial institution that offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, in the United States and around the world. It offers these services through two distinct business lines: CIBC Retail Markets and CIBC World Markets. The former comprises CIBC's personal, business banking and wealth businesses. It provides a full range of financial products and services to personal, business and wealth management clients, as well as investment management services globally to retail and institutional clients. CIBC is headquartered in Toronto, Canada.

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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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COMML VEHICLE (CVGI): Free Stock Analysis Report

HOULIHAN LOKEY (HLI): Free Stock Analysis Report

JOHNSON & JOHNS (JNJ): Free Stock Analysis Report

CDN IMPL BK (CM): 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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