Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Universal Forest Products and Core Labs JinkoSolar Holding, Trina Solar and PetroChina highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – April 08, 2016– Zacks Equity Research highlights Universal Forest Products (UFPI) as the Bull of the Day and Core Labs (CLB) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on JinkoSolar Holding Co., Ltd. (JKS), Trina Solar Limited (TSL) and PetroChina Co. Ltd. (PTR).

Here is a synopsis of all five stocks:

Bull of the Day :

Universal Forest Products (UFPI) has been banging up against all-time highs over the last month and is the Bull of the Day after it recently became a Zacks Rank #1 (Strong Buy). The company designs manufactures, treats and distributes lumber products for the do-it-yourself, manufactured housing, wholesale lumber and industrial markets. Its products include pressure-treated wood, engineered roof trusses, dimension lumber and value-added lumber products, including lattice, fence panels, deck components and kits for various outdoor products sold under the its PRO-WOOD, Deck Necessities, Lattice Basics, Fence Fundamentals and Outdoor Essentials trademarks.

Universal Forest is based in Grand Rapids, Michigan and had 7,000 fulltime employees. The company has a market cap of $1.7 Billion with a Forward PE of 19. The stock pays a dividend of 0.96% and sports Zacks Styles Scores of “A” in Growth and “B” in Momentum.

The company has seen an amazing run after a pullback to $61 in early February. UFPI currently sits around $85 which gave dip buyers a move of almost 40%. Investors must now decide whether they should wait for another pullback or chase the stock higher. Over the last two years we have seen the stock surge 60%, while the S&P is only up 10%.

Bear of the Day:

Core Labs (CLB) provides geological and environmental analysis services and manufactures precise measurement equipment. Bear of the Day after it recently became a Zacks Rank #5 (Strong Sell). The company provides basic and advanced reservoir rock and fluid analyses and other geological services to the oil industry. It provides information that helps oil companies make decisions regarding the presence and amount of hydrocarbon accumulations. The company's manufacturing operations include the design and production of laboratory equipment used in the petroleum industry. Core Labs is the Bear of the Day after it recently became a Zacks Rank #5 (Strong Sell).

Core Labs has exposure to crude oil and the stock has been under pressure since the summer as oil prices have fallen. The company has a market cap of $4.5 Billion with a Forward PE of 79 and pays a 2% dividend. The stock sports Zacks Style Scores of “F” in Value and Momentum and also has a VGM score of “F”.

The company sits in an industry ranked 224 out of 265 (Bottom 15%) of the Zacks Industry Rank. Earnings estimate revisions are showing the company is struggling with its exposure to low oil prices.

Estimates Revisions

Over the last 7 days, estimates have fallen from $0.40 to $0.36 for the current quarter. For fiscal year 2016, we see estimates revised 18% lower, to $1.68 from $1.37. Moreover, analysts have been in 100% agreement with four out of four analysts revising to the downside for the current and next quarters. The revisions lower show that the company is hasn’t benefited from the bump rise in oil prices.

Additional content:

China Stock Roundup

Markets suffered during a holiday shortened week as financial stocks took losses and investors considered the state of forex reserves. Markets were closed on Monday for a holiday. The benchmark index touched a three-month high on Tuesday, powered by tech and consumer discretionary stocks. The Shanghai Composite Index declined on Wednesday as banks and insurance companies made significant losses. The benchmark index lost the most in two weeksas investors considered the state of forex reserves to measures capital flows.

JinkoSolar Holding Co., Ltd. (JKS) announced that it will supply 57.65 megawatt (“MW”) photovoltaic (“PV”) solar modules to METKA-EGN USA LLC ("METKA-EGN"). Trina Solar Limited (TSL) said that it has inked a deal to provide 40 MW of solar modules to Turkey’s leading Engineering, Procurement and Construction (EPC) contractor Tegnatia.

Last Week’s Developments

Last Friday, the Shanghai Composite Index increased 0.2%, recovering from losses made earlier in the day. A surprising increase in the official factory index boosted sentiment regarding the economy. Additionally, speculation increased that funds with stake linkages had propped up the markets after Standard and Poor’s reduced the country’s credit rating outlook. This helped stocks recover from a loss of nearly 1.6% made earlier in the day.

The day witnessed a selloff of tech, consumer and other new economy stocks as investors purchased material and energy stocks. This was caused by a report which showed that the official manufacturing PMI increased to 50.2 in March. Standard and Poor’s cut the country’s outlook from stable to negative.

The benchmark index posted its largest monthly gain in a year during the month of March. Meanwhile, the Hang Seng China Enterprises Index declined by the most in a week, losing 1.8%, The Hang Seng moved 1.3% lower. The CSI 300 gained 0.1%. Sub-indexes of material and energy stocks increased by a minimum of 1%.

Markets and the Economy This Week

Markets were closed for a holiday on Monday. The benchmark index touched a three-month high on Tuesday, powered by tech and consumer discretionary stocks. Investors were buoyed by indications that the economy was showing signs of stabilizing. The Shanghai Composite gained 1.5%, moving upward for the fourth consecutive day. An index of tech shares posted the highest gains among all industry groups.

The CSI 300 Index advanced 1.3% as all 10 industry groups closed in the green. PetroChina Co. Ltd. (PTR) slumped, losing 4.1% following an unexpected increase in U.S. crude supplies which touched their highest level in 80 years. The Hang Seng China Index lost 1.9%.

The Shanghai Composite Index lost 0.1% on Wednesday as banks and insurance companies made significant losses. However, consumer stocks increased while the H-share index lost for a third consecutive day. The benchmark index snapped a series of four consecutive days. The country’s largest liquor manufacturer mopped up considerable gains.

The CSI 300 lost 0.2%. A sub-index of financial stocks moved 0.7% lower, declining the most among the 10 industry groups. The Hang Seng gained 0.2% while the Hang Seng China Enterprises Index declined 0.1%.

The benchmark index declined by 1.4% on Thursday, losing the most in two weeks as investors considered the state of forex reserves to measures capital flows. Data released by the People’s Bank of China showed that the country’s forex reserves increased unexpectedly. However, the country’s largest liquor manufacturer suffered the heaviest losses in three weeks.

ZTE Corp also moved lower on the Hong Kong exchange after the U.S. government said it had transgressed trade restrictions on Iran. Sub-indexes of tech and consumer staples stocks within the CSI 300 declined by a minimum of 1.9%. The Hang Seng China Enterprises lost 0.3%, moving lower for the fourth consecutive day.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. http://woas.zacks.com/adv/7stock_report.pdf?ADID=ZACKS_PFP_7... blog"> Click to get this free report >>

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. Subscribe to this free newsletter today. Find out What is happening in the stock market today on zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
UNIVL FST PRODS (UFPI): Free Stock Analysis Report
 
CORE LABS NV (CLB): Free Stock Analysis Report
 
JINKOSOLAR HLDG (JKS): Free Stock Analysis Report
 
TRINA SOLAR LTD (TSL): Free Stock Analysis Report
 
PETROCHINA ADR (PTR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.