Welcome!

Log Management Authors: Dana Gardner, Pat Romanski, Elizabeth White, David H Deans, Carmen Gonzalez

News Feed Item

The Zacks Analyst Blog Highlights: Citi Trends, IBM, Accenture, Hewlett-Packard and Microsoft

CHICAGO, July 10, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Citi Trends Inc. (Nasdaq:CTRN-Free Report), IBM Corp. (NYSE:IBM-Free Report), Accenture (NYSE:ACN-Free Report), Hewlett-Packard (NYSE:HPQ-Free Report) and Microsoft (Nasdaq:MSFT-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday's Analyst Blog:

Citi Trends Kept at Underperform

On Jul 8, 2013, we reiterated our long-term recommendation on Citi Trends Inc. (Nasdaq:CTRN-Free Report) at Underperform with a target price of $14.00, based on the sluggish macroeconomic environment.

Why the Reiteration?

Operating in the consumer-driven retail industry, we believe Citi Trends remains significantly impacted by the macroeconomic issues, wherein its customers continue to feel the pinch of increased payroll tax, higher fuel prices, high unemployment rate and delayed tax refunds.

Moreover, the seasonal nature of the company's business exposes it to significant risks if the seasons fail to deliver the expected operating performance.

Additionally, the highly fragmented specialty retail sector compels Citi Trends to compete with larger off-price rivals, mass merchants as well as smaller specialty retailers on the basis of fashion, quality and service. To retain its existing market share, the company may have to reduce its sales prices, which could affect its margins.

These have been reflected in Citi Trends' performance as it saw negative earnings surprise for first-quarter fiscal 2013. The company reported first-quarter fiscal 2013 earnings per share of 42 cents, missing the Zacks Consensus Estimate of 57 cents and down 39.1% from 69 cents earned in the year-ago quarter.

Consequently, over the last 60 days, the Zacks Consensus Estimate for fiscal 2013 has moved down to a loss of 3 cents per share from a profit of 6 cents per share. Similarly, the Zacks Consensus Estimate of loss of 47 cents for the second quarter widened by a penny  over the same time frame.

However, prudent steps taken by Citi Trends such as store expansion strategy as well as endeavors to reduce inventory shrinkage can steadily improve the operational performance of this Zacks Rank #3 (Hold) stock in the future. Nevertheless, we believe that amid the absence of near-term growth catalysts and persistent unsettling economic issues, Citi Trends' performance is likely to remain strained in the near future.

IBM Strengthens Cloud Portfolio

IBM Corp.'s (NYSE:IBM-Free Report) latest acquisition of SoftLayer Technologies Inc. is expected to strengthen its cloud services portfolio. The acquisition will allow IBM to upsell and cross sell its cloud-based products and services to SoftLayer's customers while gaining new ones.

IBM will integrate SoftLayer into its new cloud services division – IBM SmartCloud – which provides a wide range of cloud-based products and services to business enterprises. The acquisition will also strengthen IBM's 100 strong software-as-a-service (SaaS) business solutions.

The combined services will provide the infrastructure for implementing cloud computing, but in a cost effective way. It will also accelerate the integration of public and private clouds. Moreover, it will provide customized privacy, data security and computing services to its clients.

IBM is seeing strong demand for its cloud-based solutions, which is indicated by the fact that its cloud revenues increased 80.0% in 2012. Buoyed by this robust demand, IBM expects to earn $7 billion in revenues from cloud-based services by 2015-end.

Moreover, IBM expects to spend about $20 billion on acquisitions through 2015. The company is looking for strategic acquisitions to remain competitive and gain from the increased spending on cloud-based services. Gartner expects global spending on public cloud services to grow at a CAGR of 17.7% (2011-2016). It also expects the total market to grow from $76.9 billion in 2010 to $210 billion in 2016.

Thus, we believe that the IT major remains well positioned for long-term growth based on its four key growth initiatives: smarter planet, growth markets, business analytics and cloud computing, which are expected to deliver at least $50 billion in revenues by fiscal 2015. We also believe that IBM's strong product pipeline, expansion into emerging markets and continuous acquisitions will help it to achieve its growth target, going forward.

However, we remain cautious on the overall IT spending environment and believe that macroeconomic concerns will continue to hurt IBM's growth in the near term. Increasing competition from Accenture (NYSE:ACN-Free Report), Hewlett-Packard (NYSE:HPQ-Free Report) and Microsoft (Nasdaq:MSFT-Free Report) is an additional headwind for the company.

Currently, IBM has a Zacks Rank #3 (Hold).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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 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. 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 CTRN - FREE

Get the full Report on IBM - FREE

Get the full Report on ACN - FREE

Get the full Report on HPQ - FREE

Get the full Report on MSFT - 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

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.

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.

IoT & Smart Cities Stories
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...