Click here to close now.

SYS-CON MEDIA Authors: Carmen Gonzalez, Blue Box Blog, Lori MacVittie, Plutora Blog, Roger Strukhoff

News Feed Item

Chemed, Infoblox, Office Depot, Staples and Amazon.com highlighted as Zacks Bull and Bear of the Day

CHICAGO, April 1, 2014 /PRNewswire/ -- Zacks Equity Research highlights Chemed Corp (NYSE:CHE-Free Report) as the Bull of the Day and Infoblox (NYSE:BLOX-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onOffice Depot, Inc. (NYSE:ODP-Free Report), Staples, Inc. (Nasdaq:SPLS-Free Report) and Amazon.com Inc. (Nasdaq:AMZN-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Here is a synopsis of all five stocks:

Bull of the Day:

Chemed Corp (NYSE:CHE-Free Report) isn't a company that gets a lot of press. Today is April Fool's Day, and I wanted to work in a joke here, but I just can't. Chemed is a Zacks Rank #1 (Strong Buy) and is the Bull of the Day.

Down the Drain

I have to admit, when I saw the name Chemed, I thought to myself this must be a specialty chemicals company. Instead, I was fascinated to learn that this is the corporate parent of Roto-Router as well as a hospice company.

The synergies didn't make too much sense to me, but I was too excited to write about Roto-Router to take a pass. Plus, I could always make a pun about something or another. The thing that pushed it over the top for me was that it was based on Ohio, and I am, by birth-rite, a Buckeye.

Chemed Corporation provides hospice and palliative care services in the United States. It operates in two segments, VITAS and Roto-Rooter. The company offers its services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers. It also provides plumbing and drain cleaning services to residential and commercial customers. Chemed Corporation was founded in 1970 and is based in Cincinnati, Ohio.

Bear of the Day:

Infoblox (NYSE:BLOX-Free Report) is a Zacks Rank #5 (Strong Sell) while there 6 other companies that carry higher Zacks Ranks. This is a good reason to take a look at why it is a #5 and the Bear of the Day.

Maybe you have seen some articles about big data and its growing importance to the economy. Seems marketers need all this data to get the best possible ad to you, making the rest of our lives similar to surfing the internet.

The thing that a lot of investors have done is look to the back bone of big data as a spot to invest. While that works in some spots, it doesn't guarantee success.

Infoblox Inc. is in the business of automated network control solutions. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances. The company was founded in 1999 and is headquartered in Santa Clara, California.

BLOX has missed the Zacks Consensus Estimate for 2 straight quarters. As I look back further, I see they have missed three of their last five quarters. There was one mega-miss that came in 100% below the Zacks Consensus Estimate, that will end up skewing the average, but the other two misses were large as well. A miss of 20% and 16% are nothing to shake a stick at.

Additional content:

Office Depot in Downward Spiral?

It seems that Office Depot, Inc. (NYSE:ODP-Free Report) has lost its momentum, as the stock fell nearly 16% ever since the company reported a dismal fourth-quarter 2013 on Feb 25, 2014. Year-to-date, the company has witnessed its market cap erode by 23%.

The slide is a reflection of wary investors as Office Depot continues to disappoint on the earnings front. The company has missed the Zacks Consensus Estimate in the trailing 4 quarters by an average of 122.2%.

In the most recent quarter, earnings fell short of the estimate by 200%. The company posted fourth-quarter 2013 loss of 3 cents per share as against the Zacks Consensus Estimate of earnings of 3 cents. Revenues of $3,486 million also fell short of the Zacks Consensus Estimate.

What is Causing the Dismal Run?

The office supplies industry is currently grappling with secular as well as cyclical headwinds. Improvement in technology has reduced the demand for traditional core office-supply items (paper, toner, ink). Moreover, the decline in business and consumer spending, given the global meltdown and deterioration of credit markets has resulted in sluggish demand for big-ticket items, thereby negatively impacting the top line. The sector's poor run has had a telling effect on the performance of other retailers including Staples, Inc. (Nasdaq:SPLS-Free Report).

Additionally, increasing competition from online giants such as Amazon.com Inc. (Nasdaq:AMZN-Free Report) has squeezed out a large share of profits from office supply retailers.

Given the uncertainties, analysts' have become less constructive on the stock's future performance. This is evident from the movement witnessed in the Zacks Consensus Estimate that tumbled 56% to 11 cents for 2014 and 42% to 33 cents a share for 2015 in the past 60 days.

Revival Measures

To bail itself out, Office Depot merged with Office Max. Management was very upbeat on the merger and raised expectations regarding the synergies during the recent fourth quarter conference call.

Management now expects synergies from the merger to exceed more than $600 million by 2016. This excludes any benefit arising from rationalizing the domestic retail store base. Earlier, cost savings in the upper half of $400 million to $600 million were expected to be generated from the merger synergies (purchasing, cost of good sold, supply chain, advertising, headcount and other general & administrative).

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

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.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on CHE - FREE

Get the full Report on BLOX - FREE

Get the full Report on ODP - FREE

Get the full Report on SPLS - FREE

Get the full Report on AMZN - FREE

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
There are 182 billion emails sent every day, generating a lot of data about how recipients and ISPs respond. Many marketers take a more-is-better approach to stats, preferring to have the ability to slice and dice their email lists based numerous arbitrary stats. However, fundamentally what really matters is whether or not sending an email to a particular recipient will generate value. Data Scientists can design high-level insights such as engagement prediction models and content clusters that a...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
Database apps on mobile devices shouldn't stop working when there's limited or no network connectivity. In his session at 16th Cloud Expo, Bradley Holt, a Developer Advocate for IBM Cloudant, will discuss how to bring data stored in a cloud database to the edge of the network (and back again), whenever an Internet connection is available. He will demonstrate techniques for replicating cloud databases with mobile devices in order to build offline-enabled mobile apps that can provide a better,...
This talk focuses on the application of DevOps fundamentals to include network infrastructure. It draws from real deployment case studies on the extension of today's paradigms to address the challenges of the network infrastructures' ability to seamlessly and cohesively integrate into agile workflows. In this session at DevOps Summit, Arista Networks will focus on configuration management using automation with a nod to future work necessary to include telemetry and ephemeral state information....
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization's assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In...
There are lots of challenges in IoT around secure, scalable and business friendly infrastructure for enterprises. For large corporations, IoT implementations are one of the top priorities of the decade. All industries are seeing a competitive need to sustain by investing in IoT initiatives. The value addition comes from improved customer service, innovative product and additional revenue streams. The data from these IP-connected devices can be leveraged for a variety of business applica...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mo...
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of ...
To manage complex web services with lots of calls to the cloud, many businesses have invested in Application Performance Management (APM) and Network Performance Management (NPM) tools. Together APM and NPM tools are essential aids in improving a business's infrastructure required to support an effective web experience... but they are missing a critical component - Internet visibility. Internet connectivity has always played a role in customer access to web presence, but in the past few years u...
Working with Big Data is challenging, especially when decision makers depend on market insights and intelligence from your data but don't have quick access to it or find it unusable. In their session at 6th Big Data Expo, Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia; Zel Bianco, President, CEO and Co-Founder of Interactive Edge of Solgenia; and Ermanno Bonifazi, CEO & Founder at Solgenia, discussed how a revolutionary cloud-based BI along with mobile analytics is already c...