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Darden, 3D Systems, Four Corners Property Trust, Apple, Lenovo and HP highlighted as Zacks Bull and Bear of the Day

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Chicago, IL - December 28, 2015- Zacks Equity Research highlights Darden ( DRI ) as the Bull of the Day and 3D Systems ( DDD ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Four Corners Property Trust ( FCPT ), Apple ( AAPL ), Lenovo ( LNVGY ) and HP ( HPQ ).

Here is a synopsis of all five stocks:

Bull of the Day :

Who doesn't like a good night out at a restaurant? Living in Chicago, I'm about as spoiled as they come. You see, here in the Windy City, we've got restaurants of all shapes, sizes, and styles all over the place. So I'm a little bit picky when it comes to where I chose to go to eat. Typically, I try and avoid the big restaurant chains that are out there because, frankly, a Ma and Pa spot around the neighborhood will usually put it to shame. But I can't deny the appeal of some of the restaurants owned by today's Bull of the Day, Darden ( DRI ).

Darden's restaurants include Olive Garden, Longhorn Steakhouse, Bahama Breeze, Seasons 72, The Capital Grille, Eddie V's, and the Yard House. Over 150,000 people work for Darden and through its subsidiaries, Darden owns and operates more than 1,500 restaurants and serves more than 320 million meals a year.

Recently Darden spun off the Four Corners Property Trust ( FCPT ) REIT which owns the real estate which the Olive Garden locations are situated on. The spinoff initially caused a drop in shares of Darden but shares have roared back, recouping all of that drop and more. The result is a very happy shareholder cashing in not only on a 3.4% dividend from Darden but also plenty of future potential income from FCPT.

Darden is a Zacks Rank #1 (Strong Buy) in a retail restaurant industry that ranks in the Top 35% of our Zacks Industry Rank. A big reason for the favorable Zacks Rank is the big earnings beat that saw analysts rush to up their earnings estimates. Last quarter, Darden's EPS came in at 54 cents versus our Zacks Consensus Estimate calling for 42 cents. That marked the sixth consecutive earnings beat for shares of Darden.

As I mentioned before, shares of Darden have taken off following the spinoff of FCPT. For most of 2015, Darden shares were in a steady uptrend. After hitting a 52-week high of $67.59 on July 23rd, shares began to retreat, dipping below the 50-day moving average and eventually dipping all the way down to $53.53 before finding support in mid-November. From there, the buyers have stepped in with force and pushed shares of Darden back up above $65.

Bear of the Day :

I get it, people love their story stocks. I mean, it's fun to sit down and tell your friends about this new trend that's developing in the world and letting them know how to get in on the action. It's an ego thing. You've hunted, done your research, and found something that's going to revolutionize the world. You're going to be rich, the world just hasn't caught up with you yet.

You see, there's only one problem with this theory. What happens if the market just never agrees with you? Then you're stuck holding the bag on a "woulda, coulda, shoulda." Or, even worse, Wall Street has already gone nuts about the story, and rather than selling out, you held out because, "it's gonna go even higher." You start buying up shares, get sucked into a value trap, and years later you've got ten thousand shares of regrets.

Today's Bear of the Day was supposed to be this "revolutionary technology" that changed everything. Rather, 3D Systems ( DDD ) is a warning tale for what not to do. 3D Systems operates as a provider of 3D printing centric design-to-manufacturing solutions. The company 3D printers transform data input from the format generated by 3D design software to printed parts using integrated, engineered plastic, metal, nylon, rubber, wax, and composite print materials.

As much as people want to talk negatively about timing a market or timing a stock, timing makes all the difference in the world. Timing isn't just a charting function. You can use timing to your advantage by taking a look at our Zacks Rank. Remember, the Zacks Rank looks favorably on stocks where analysts are aggressively moving their earnings estimates in a positive direction and looks unfavorably on stocks where analysts are dropping their estimates.

If you're in love with the story behind 3D Systems and want to buy the stock there is a simple timing mechanism you can use to help minimize your risk. Wait for the Zacks Rank to begin to turn around from the Zacks Rank #5 (Strong Sell) the stock is now. This helps give you the best chance of catching the turnaround in the stock.

With regards to the estimates on DDD, analysts have been dropping their numbers for the current quarter, next quarter, current year, and next year. The bearish sentiment has dropped our Zacks Consensus Estimate for the current year from a 7 cent gain to a 12 cent loss. Next year's numbers have gone from a 34 cent gain to an 8 cent gain. If you think the analysts are way off, maybe you're right, but consider this. The last four quarters in a row, the Zacks Consensus Estimate has been off by an average of 4 cents. But that 4 cents has been over the reported numbers. So if anything, estimates have been optimistic.

3D Systems is lumped into an industry with Apple ( AAPL ), Lenovo ( LNVGY ) and HP ( HPQ ). None of these stocks has a rank greater than a Zacks Rank #3 (Hold).

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.

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DARDEN RESTRNT (DRI): Free Stock Analysis Report

3D SYSTEMS CORP (DDD): Free Stock Analysis Report

FOUR CORNRS PPT (FCPT): Free Stock Analysis Report

APPLE INC (AAPL): Free Stock Analysis Report

LENOVO GRP LTD (LNVGY): Free Stock Analysis Report

HP INC (HPQ): 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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