Zacks Bull and Bear of the Day Highlights: Triumph Group, Walter Energy, International Game Technology, Apple and Google
CHICAGO, Nov. 29, 2012 /PRNewswire/ -- Zacks Equity Research highlights Triumph Group, Inc. (NYSE:TGI) as the Bull of the Day and Walter Energy Inc. (NYSE:WLT) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on International Game Technology (NYSE:IGT), Apple (Nasdaq:AAPL) and Google (Nasdaq:GOOG).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
We are upgrading our recommendation on Triumph Group, Inc. (NYSE:TGI) from Neutral to Outperform based on the huge organic growth the company has experienced on the back of high demand in the industry. Also, efforts of lowering costs, increasing margins and a strong balance sheet bode well for the stock.
The company's concerted efforts in achieving these positives would in turn increase shareholders value which is considered to be an added perk. TGI reported strong results in the second quarter 2013 with earnings of $1.57 per share, an increase of 36.5% year over year. Also, there was a huge jump in revenue of 18.7%, leading it to stand at $938 million.
Our long-term Outperform recommendation indicates that the company will beat the broader U.S. equity market over the next six to twelve months. Our $79.00 target price, 13.2x 2013 EPS, reflects this view.
Walter Energy Inc. (NYSE:WLT) posted lackluster results in the third quarter with both top and bottom lines lagging the Zacks Consensus Estimates. The global coal market downturn and softness in selling prices negatively impacted results.
The global economic stalemate is expected to linger, thereby dragging down the company's sales and profit. Declining sales resulting in coal stockpiles would prove unprofitable for the company in the short term. This, along with the company's narrow capex outlook for 2013 is expected to shake investor confidence.
We remain bearish for the company stock in the long run. Our $26.00 target price is based on 2.4x trailing 12-month cash flow per share.
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IGT's Cleopatra on Mobile
International Game Technology's (NYSE:IGT) popular slot game 'Cleopatra' is being made available on mobile devices by DoubleDown Interactive. The mobile-based Cleopatra is compatible with Apple's (Nasdaq:AAPL) iOS devices as well as with Google's (Nasdaq:GOOG) Android based devices, enabling the game to reach out to a large number of gamers.
This is DoubleDown Casino's second game in the mobile format, after Da Vinci Diamonds. IGT's DoubleDown Casino has been offering online versions of IGT's traditional casino-style games. Now, the company's expansion into the mobile gaming segment has diversified its revenue base. IGT is expected to release mobile editions of its popular titles such as ELVIS A Little More Action, Kitty Glitter and Wolf Run.
In the last reported quarter, IGT's top line had expanded 17% year over year, aided by strong performance from the interactive business and higher product sales. Interactive revenue was $53.9 million compared with $13.4 million in the year-ago quarter. Social gaming revenue was $35.8 million while IGTi revenue was $18.1 million in the reported quarter.