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Goldman Sachs, Shutterfly, Alibaba Group, Daimler AG and Texas Instruments highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL - February 07, 2017 - Zacks Equity Research highlights Goldman Sachs (NYSE: GS - Free Report ) as the Bull of the Day and Shutterfly (NASDAQ: SFLY - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alibaba Group(NYSE: BABA - Free Report) , Daimler AG(OTCMKTS: DDAIF - Free Report) andTexas Instruments(NASDAQ: TXN - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day :

Bank stocks have been big gainers since Trump's electoral victory on hopes of higher interest rates and lighter regulations under the new administration. On Friday, bank stocks surged after president Trump ordered a review of Dodd Frank regulations.

Goldman Sachs (NYSE: GS - Free Report ) is seen as a big winner from the roll back of these regulations and in general a lighter regulatory environment promised by Trump. These Dodd Frank rules and other regulations imposed in the aftermath of the financial crisis no doubt improved the health of the banking system but their costs were too high.

About the Company

Founded in 1869, Goldman Sachs Group, is a leading global investment banking, securities and investment management firm. The company is headquartered in New York, with offices in all major financial centers around the world.

Excellent Results

They reported last month, beating the Zacks Consensus Estimates on the top the bottom lines. Results were boosted by a surge in trading volumes and cost cutting.

Adjusted earnings of $5.08 per share were significantly ahead of the Zacks Consensus Estimate of $4.76 and revenues of $8.2 billion also beat the expectation of of $7.4 billion.

"After a challenging first half, the firm performed well for the remainder of the year as the operating environment improved," said the CEO.

Rising Estimates

After better than expected results, analysts have raised estimates for the company. Zacks Consensus Estimates for the current and the next year have surged to $19.60 per share and $22.32 per share from $18.74 and $21.02 respectively, before the results.

Bear of the Day :

Founded in 1999 and headquartered in Redwood City, CA, Shutterfly (NASDAQ: SFLY - Free Report ) is a leading provider of Internet-based social expression and personal publishing service. They had IPO'd in 2006.

The company has a portfolio of premium lifestyle brands including Shutterfly, Tiny Prints, Wedding Paper Divas, BorrowLenses, MyPubisher, and Groovebook.

Consumer revenues accounted for 93% of total revenue in 2016, while Business Solutions contributed 7%.

Results Disappoint

The company reported weak Q4 2016 results, missing on both the top and bottom lines. Adjusted earnings of $2.63 per share were short of the Zacks Consensus Estimate of $2.73. Earnings were also down 26.3% year-over-year.

While net revenue increased 2% year-over-year, they missed the Zacks Consensus Estimate of $586.4 million.

Management's outlook for the current quarter was also weaker than street expectations. Shares plunged after the report.

"In recent years, we spread our resources thin across many businesses, brands and platforms, making it impossible to dedicate the right level of resource to each one," said the CEO.

They announced reduction of their head count by 13% and closing of three offices.

Falling Estimates

Analysts have slashed their estimates for the company after disappointing results. Zacks Consensus Estimates for the current and the next fiscal year have plunged to $0.56 per share and $1.43 per share respectively, from $1.20 and $1.98, 7 days ago. Declining estimates sent the stock to a Zacks Rank #5 (Strong Sell).

Additional content:

Sticks and Stones: Global Week Ahead

Remember "Sticks and Stones"? It's that old English child's rhyme. The saying has persuaded many a childish victim of name-calling.

Don't worry. Ignore that taunt! Refrain from physical retaliation. Be calm. Stay good-natured.

"Sticks and stones may break my bones, but words will never harm me."

In the Global Week Ahead, this rhyme proves a patent falsehood. Tweeting "Build the Wall" and "Reject NAFTA" taunts galore, key macroeconomics inside Mexico have indeed been damaged by U.S. words alone.

When words emanate from the President of the United States, it changes everything. The direct economic forces these imply, and indirect uncertainty it incorporates, ripple immediately thru forward-looking global markets.

They wreak monetary havoc upon its victims.

Case in point: the actions of the Central Bank of Mexico (known as Banxico). Mexico's first policy rate decision since Dec. 15th -- when it hiked 50 basis points -- is delivered this Thursday.

Banxico's policy rate sits at 5.75%. Consensus sees 50 basis points in tightening sometime this quarter. The median forecast sees a 6.75% Banxico overnight rate (100 basis points in tightening) by yearend. Analysis by the Bank of Nova Scotia says still more pressures build late in 2017. These force this key Mexican rate to 7.5% by 1H-2018.

That's 175 bps, equal to seven more 25 basis point hikes.

What key issue faces Mexico's central bankers? -- A need to offset Mexican peso depreciation.

Think of this in the context of an annual consumer price inflation target of +3.0%. Given import content built into Mexican consumption, the problem with relentless Trump tweets keeps building.

Here's the evidence. On Thursday, Mexico's consumer price inflation (CPI) could get to +4.69% from 3.36% y/y. The m/m rise lifts to +1.67%, up from +0.46 m/m the prior month. This is mostly a Mexican peso effect. More expensive imports into the country flow directly to the CPI.

Since Banxico's last monetary policy decision, the Mexican peso has depreciated against all other major and semi-major currencies. In short, the previous December monetary belt-tightening slowed, but did not negate Mexican peso depreciation.

Banxico's current Governor, Augustin Carstens, leaves his lofty post to become the still-loftier head of the Swiss-based Bank for International Settlements, known in the economist trade as "the BIS," this July.

He recently remarked that the Mexican peso is undervalued. Then, he guided markets. Banxico will "look through a temporary rise of inflation and we will not impose excessive costs on the economy. But we have to be very watchful."

The Bank of Mexico's governor makes it sound like the causes behind this depreciation of the Mexican peso will recede. Let's hope they do.

In another important global theater, five central banks in Asia set monetary rates this week. Their leaders will comment on current global risks, too.

Consensus opines the Reserve Bank of India (RBI) will cut its policy rate. The Reserve Bank of Australia (RBA), the Reserve Bank of New Zealand (RBNZ), the Bank of Thailand (BoT) and Bangko Sentral ng Pilipinas (BSP) should hold their respective policy rates steady.

On Friday, Mainland China offers up export-import trade growth statistics. This data have added trading implications.

Top Zacks #1 Rank (STRONG BUY) Large Cap Stocks-

Alibaba Group(NYSE: BABA - Free Report): This Mainland China company operates online and mobile marketplaces in retail and wholesale trade, as well as cloud computing and other services. It provides technology and services to enable consumers, merchants and other participants to conduct commerce in its ecosystem.

Daimler AG(OTCMKTS: DDAIF - Free Report): This German company has a number of auto/truck businesses, such as Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses. It is a globally leading producer of premium passenger cars and the largest manufacturer of commercial vehicles in the world.

Texas Instruments(NASDAQ: TXN - Free Report): This U.S. multi-national has evolved into a global semiconductor company. It is also one of the world's leading designers and suppliers of digital signal processors and analog integrated circuits. These are the engines driving the digitization of electronics.

Each stock also carries a long-term Zacks VGM score of B, which represents a BUY rating.

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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.

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.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report

Shutterfly, Inc. (SFLY): Free Stock Analysis Report

Alibaba Group Holding Limited (BABA): Free Stock Analysis Report

Daimler AG (DDAIF): Free Stock Analysis Report

Texas Instruments Incorporated (TXN): Free Stock Analysis Report

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Zacks Investment Research

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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