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AMC Networks, JD.com, InBev, SABMiller and Molson Coors Brewing highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – May 02, 2016 – Zacks Equity Research highlights AMC Networks (AMCX) as the Bull of the Day and JD.com (JD) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on InBev (BUD), SABMiller (SBMRY) and Molson Coors Brewing (TAP).

Here is a synopsis of all five stocks:

Bull of the Day:

AMC Networks (AMCX) owns and operates various cable television stations and engaged in producing programming and movie content. Its programming network channels include AMC, IFC, Sundance, WE, and BBC America. The company is best known for its shows Breaking Bad, The Walking Dead, Better Call Saul and Hell on Wheels. The company is the Bull of the Day after it recently became a Zacks Rank #1 (Strong Buy).


AMC has a market cap of $4.75 Billion with a Forward PE of 11. The stock should be viewed as a value play with its low multiple, a factor giving it a Zacks Style Score of “B” in Value. The company has an expected 3-5 year growth rate just above 10%.

The stock was recently upgraded by Macquarie with an $82 price target. The firm highlights AMC’s efforts to build its ownership of premium programming and its valuation as reasons to like the stock. Macquarie notes the success of the international networks and that AMC can extend its content onto skinny bundles offering subscription video on demand.

Relative Weakness

AMCX has pulled back from its 2015 high of $83.97 to the $65 area. In February the stock hit a low of $60.67 and has since grinded its way higher. However, it hasn’t seen much love during this recent rally as investors don’t seem to be buying its valuation yet. There are concerns that the mega-hit programs have hit their peaks and room for growth is limited. Being that this is priced in the stock, any surprise in growth in the earnings numbers will send the stock higher. The company reports May 5th.

Bear of the Day :

JD.com (JD) operates as an online direct sales company in China that offers a selection of authentic products. after the company reported earnings late last week. The companies offers a wide variety of products including appliances, phones, furniture, jewelry, toys, books, tickets, and even alcohol. The Beijing based company is now a Zacks Rank #5 (Strong Sell) after a Q4 EPS miss and a large debt offering.


The company has a market cap of $35 Billion and has negative EPS. The stock has Zacks Style Scores of “D” in Value and “F” in Growth, along with a “D” VGM score. The company falls in an industry ranked 180 out of 265 (Bottom 32%) of the Zacks Industry Rank.

Estimates and Earnings

Q4 earnings in early March came in at $-0.07 verse the $-0.02 expected. While revenue was a beat and enough to pop the stock to $30 a share, the stock has come all the way back and is looking weak after some falling estimate revisions and a debt offering. Revisions for the current year have been to the downside. Over the last 60 days, estimates have come 22% lower for fiscal year 2016.

Additional content:

AB InBev (BUD) Offers to Sell More SABMiller Assets for EU Approval

Anheuser-Busch InBev (BUD) announced Friday that it had offered to sell the Central and Eastern European operations of SABMiller (SBMRY), which could be worth an estimated $8 billion, as it seeks European regulatory approval for company’s $100 billion-plus takeover of its closest rival.

The SABMiller-Anheuser-Busch combination would create an enormous company in the beer industry accounting for about 30% of global beer sales. Anheuser-Busch has entered into a number of agreements to sell a variety of assets from the combined company in order to appease skepticism and regularity concerns about the merger.

Earlier this month, for example, AB InBev accepted an offer by Asahi Group Holdings of Japan to buy the beer brands Grolsch, Meantime, and Peroni, as well as some of SABMiller’s European operations, for € 2.55 billion, or about $2.9 billion.

Anheuser-Busch hopes to close the deal for SABMiller in the second half of this year.

“SABMiller’s Central and Eastern European businesses have been a core part of our growth story since we first embarked on our international expansion strategy over 20 years ago,” Alan Clark, SABMiller’s chief executive, said in a news release.

Mr. Clark added, “We are very proud of these businesses, their brands and the people that have made them the successes they are today, and we will continue to grow and support them throughout this process.”

In November, Anheuser-Busch agreed to sell SABMiller’s 59% stake in MillerCoors in the United States to SABMiller’s partner in a joint venture, Molson Coors Brewing (TAP), for about $12 billion. That deal includes the global rights to the Miller brand and would make Molson Coors the second-largest brewer in the United States, behind Anheuser-Busch.

According to a report via Reuters, the European Commission, the European Union's antitrust regulator, is set to deliver its verdict on the SABMiller takeover by May 24. “If the Commission chose to open an in-depth investigation into the SAB deal, it would not receive clearance for up to 90 working days, a delay AB InBev may be keen to avoid.”

Anheuser-Busch InBev has a Zacks Rank #3 (Hold).

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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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AMC NETWORKS- A (AMCX): Free Stock Analysis Report
 
JD.COM INC-ADR (JD): Free Stock Analysis Report
 
ANHEUSER-BU ADR (BUD): Free Stock Analysis Report
 
SABMILLER PLC (SBMRY): Free Stock Analysis Report
 
MOLSON COORS-B (TAP): Free Stock Analysis Report
 
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