Zacks Bull and Bear of the Day Highlights: Wisdom Tree Investments, Freightcar America, Intel, Comcast and eBay
Zacks Equity Research
For Immediate Release
Chicago, IL – April 22, 2013 – Zacks Equity Research highlights Wisdom Tree Investments (WETF) as the Bull of the Day and Freightcar America (RAIL) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Intel Corp (INTC), Comcast (CMCSA) and eBay (EBAY).
Wisdom Tree Investments (WETF) has seen some strong net inflows over the past few quarters and has dramatically increased its assets under management of late. As a Zacks Rank #2 (Buy), it is the Bull of the Day.
One look at the annual net inflows for the ETF Industry and you will see that the growth story is back on. There was $177 billion in net inflows in 2008, but the recession cased that number to slide to $116 billion in 2009. A slight gain was recorded in 2010 with net inflows reaching $118B in 2010 and they stay at that level in 2011. Last year, the industry posted and industry record with $185 billion of net inflows.
2012 Inflows are worth a closer look. The industry saw $53B in 1Q12, followed by $25B in 2Q and then $52B and $55B in quarters three and four respectively. So as the market improved, the industry saw a willingness on the part of investors to move shift their assets from cash. Interestingly, the industry saw a net inflow for fixed income products of $356B with $52B of that coming in the form of ETFS. They noted that equities saw a net outflow of $20B as equity mutual funds saw $153B in redemptions but there was $133B in net inflows for equity ETFs.
Freightcar America (RAIL) has been running off the rails lately in posting negative earnings surprises in two of the last three quarters. The stock is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.
The most recent earnings report saw the company post a huge decline in deliveries to 1,308 from 2,489 in the year ago period. The number was also a sequential decline from the 1,618 railcars delivered in 3Q12.
Orders were 473 units in the quarter, down 89% from the 4,481 units ordered in the year ago period.
Backlog was 2,881 at the end of the year, down 63% from teh 8,303 units at the end of 2011. The number was also a decrease from the prior quarters level of 3,716.
FreightCar America builds and repairs railcars for the railroad industry. The company was founded in 1901 and is headquartered in Chicago, Illinois.
The world’s largest manufacturer of semiconductor products, Intel Corp (INTC) announced that it has acquired San Francisco-based startup Mashery Inc. for $180 million.
Founded in 2006, Mashery provides technological solutions in application programming interfaces (API) to some of the leading brands such as USA TODAY, Comcast (CMCSA), Hoover’s, Klout, Associated Press, Rdio and Travelocity. API comprises pieces of code and other specifications that facilitate software development. The acquisition marks Intel’s efforts to further build its software business.
APIs are basically a set of routines, protocols and tools for building software applications. Good APIs make it easier to develop a program by providing all the building blocks, which the programmer can put together.
Currently, firms such as eBay (EBAY) use this technology to run their businesses. Others, like Layer 7, Apirio and MuleSoftall provide API management services.
Intel sells chips, which are used in server systems that companies use to share information with mobile devices. Mashery provides the building blocks that are used by software developers to make user interaction possible. The acquisition furthers Intel’s efforts in the software and services segment.
Intel reported revenues of $12.58 billion, within the guidance range of 12.7 billion (+/-$500 million) in the first quarter of fiscal 2013, down 6.7% sequentially and 2.5% year over year. Weaker-than-expected PC demand stemming from tablet cannibalization and restrained consumer buying due to tighter budgets continued in the quarter.
Currently, Intel shares carry a Zacks Rank #3 (Hold).
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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