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New Oriental Education & Technology Group, Commercial Vehicle Group, Wal-Mart, Twitter and AT&T highlighted as Zacks Bull and Bear of the Day

CHICAGO, Dec. 5, 2013 /PRNewswire/ -- Zacks Equity Research highlights New Oriental Education & Technology Group (NYSE:EDU-Free Report) as the Bull of the Day and Commercial Vehicle Group Inc. (Nasdaq:CVGI-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onthe Wal-Mart (NYSE:WMT-Free Report), Twitter (NYSE:TWTR-Free Report) and AT&T (NYSE:T-Free Report).


Here is a synopsis of all five stocks:

Bull of the Day:

As a result of an excellent quarterly performance, estimates for this educational service provider have been on the uptrend sending the company back to Zacks Rank #1 (Strong Buy).

Founded in 1993, New Oriental Education & Technology Group (NYSE:EDU-Free Report)  is the largest provider of private educational services in China with about 17 million student enrollments.

Headquartered in Beijing, EDU currently has a network of 57 schools, 713 learning centers, 32 bookstores and over 16,200 teachers in 50 cities. Additional it has a large online network with over 8.3 million users. 

The company released their financial results for the first fiscal quarter ended August 31, 2013 on October 23, 2013. EDU experienced strong top-line growth with total net revenues increasing by 15.7% year-over-year. Net operating earnings were $0.81 per share, beating the Zacks Consensus Estimate of $0.78 per share.

Total student enrollments in academic subjects tutoring and test preparation courses increased by 2.3% year-over-year. Operating margin expanded by 470 basis points to 34.9%.

Bear of the Day:

Commercial Vehicle Group Inc. (Nasdaq:CVGI-Free Report) is a supplier of products and systems for the global commercial vehicle market. Its products include static and suspension seat systems, electronic wiring harness assemblies, controls and switches, cab structures and components, interior trim systems, interior and exterior finishes and mirrors and wiper systems.

In addition to manufacturing assemblies in North America, they have facilities in Europe and Asia.

CVGI reported its third quarter results on November 4, 2013. Revenues for the quarter were down 8.2%, compared to those for the third quarter of 2012.  Operating loss for the quarter was ($0.08) per share, significantly worse than the Zacks Consensus Estimate of $0.07 per share.

According to the management "certain of our end markets experienced a difficult quarter that negatively impacted our results".

The company has missed Zacks Consensus Estimates in all of last four quarters, with an average negative quarterly surprise of 287.4%.

Additional content:

Break Up Wal-Mart?

I saw an older documentary about Wal-Mart (NYSE:WMT-Free Report) the other day, and while the tide has turned a little lately, it is still a great topic to discuss.

We all know the mega retailer, its $262B market capitalization and dominate grip on the American consumer.  You may know them for low prices, but you may also know them as a destroyer of jobs.

You might know WMT for its huge selection and somewhat recent move into grocery items, and you may also know it for its polluting and abandoned superstores that scar the landscape.

Wal-Mart gets plenty of tax breaks from towns that add the stores, but they also bring along plenty of unwanted consequences.  The low wages that they pay associates are among the primary problem... and it was recently highlighted on the Daily Show about how WMT employees are donating to other WMT employees.

In keeping a high number of part time employees and far fewer full timers, the company is able to reduce expenses and thus improve the bottom line.  The part timers may then turn to the government for assistance and things like food stamps and assistance with housing bills and other programs.  The tax payers, whether they utilize the low prices of WMT or not, are stuck with the bill.

I am all in favor of WMT employees using Twitter (NYSE:TWTR-Free Report) to organize and create a union to force higher wages, better conditions and more respect.  I would welcome the higher prices that are passed along to all shoppers in order to preserve some dignity of the working people. 

But I am also in favor of breaking up the company like we did for Standard Oil and AT&T (NYSE:T-Free Report).  Both companies more than survived the process and shareholders didn't really suffer either. The result would be less government influence and more jobs.

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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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