Commercial Vehicle Group, MTS Systems, Ipsen, AXA and Arkema highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – April 26, 2017 –Zacks Equity Research highlights Commercial Vehicle Group (NASDAQ: CVGI – Free Report ) as the Bull of the Day, MTS Systems Corp (NASDAQ: MTSC – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ipsen S.A. (OTCMKTS: IPSEY – Free Report ), AXA SA (OTCMKTS: AXAHY – Free Report ) and Arkema S.A. (OTCMKTS: ARKAY – Free Report ).

Here is a synopsis of all five stocks:

Bull of the Day :

Commercial Vehicle Group (NASDAQ:CVGI – Free Report ) has seen a dramatic rise in price over the last week or so. Investors are probably appreciating the fact that the stock is a now a Zacks Rank #1 (Strong Buy) with a growth style score of “A” – and that is just what you want to see for this market.

Description

CVGI makes cab related equipment for trucks and busses. Some of the equipment they make includes seats and electrical wiring. The company sells these products worldwide.

Recent Top Pick of the Week

Class 8 Truck Sales

Recent data has shown that the big trucks on the highway are big sellers. I came across some interest data points that said that sales were more than 40% ahead of last year levels.

The whole trucking sector has seen a lot of news lately with an IPO in the space as well as a very larger buyout.

On top of the strength we have seen from the truckers, the transports in general are seeing a big sector rotation. This rotation started in the shippers, but that group has seen the waters get a little choppy for investors. Trucking has been hot as discussed above and the rail names have posted some great numbers as well.

Earnings Estimates

We are seeing the Zacks Consensus Estimate move higher of late. The number for 2017 was sitting at $0.20 for the last two months, but it has recently kicked higher to $0.29.

The 2018 number has also seen movement that should bring a smile to the face of investors. The Zacks Consensus Estimate for 2018 moved from $0.42 30 days ago to $0.59 about a week ago and is now at $0.61.

The increase in annual earnings estimates is the single biggest factor for why this stock is a Zacks Rank #1 (Strong Buy).

Valuation

The valuation picture is a little mixed and that could be the reason for the solid value style score. The forward PE of 29x is pretty steep when you consider the normal market multiple is around 18x. The other metrics are much better, with the price to book coming in a 3.8x and the price to sales multiple coming in at a very low level of 0.4x.

Bear of the Day :

When management decides to merge or acquire another company they tend to see all the potential positive impacts the move will bring to the bigger company, but a perfect acquisition rarely occurs. This is the situation facing our Zacks Bear of the Day, MTS Systems Corp (NASDAQ:MTSC – Free Report ) who saw a negative impact on their EPS due to their recent integration.

This Zacks Ranked #5 (Strong Sell) is a leading global supplier of test systems and industrial position sensors. The Company's testing hardware and software solutions help customers accelerate and improve their design, development, and manufacturing processes and are used for determining the mechanical behavior of materials, products, and structures. MTS' high-performance position sensors provide controls for a variety of industrial and vehicular applications.

Recent Earnings Report

On April 10th management reported FY 16, and Q1 17 earnings and revenue results where they missed the Zacks consensus earnings estimate, but beat the Zacks consensus revenue estimate. In the quarter the company saw year over year changes in Revenues +42%, on stronger than expected organic revenue growth. EPS fell by -29.5% when compared to the year earlier due to a -$0.46 negative impact from acquisition integration. The company was also negatively affected by violations of the company’s Code of Conduct by some employees. This investigation resulted in no loss of intellectual property theft, and caused management to create a new Chief Risk and Compliance Officer. Lastly, management admitted that their PCB acquisitions’ cost and restructuring expenses will have a negative impact on their FY 2017 results.

FY 2017 Guidance

During the earnings report, management gave updated guidance for FY 2017, and both EPS and revenue were below the Zacks expectations. Management guided EPS in a range between $1.67 and $2.15, well below the Zacks consensus estimate of $2.82. Moreover, management adjusted FY 2017 revenue guidance to a range between $760 million and $790 million, well below the previous estimate of $809 million.

Management’s Take

Dr. Jeffrey A. Graves, President and Chief Executive Officer of MTS Systems commented on their recent results and 2017 outlook stating, “With regard to the business performance and the PCB acquisition that closed in July 2016, fiscal year 2016 ended on a strong note with overall double digit revenue growth that extended into the first quarter of fiscal year 2017. The integration of PCB is progressing as anticipated, and we remain excited about the products and capabilities added to the company, and the revenue and cost synergies we expect to realize from the combination. While the integration costs and restructuring expenses did have a negative impact on our fiscal year 2016 fourth quarter earnings and will negatively impact fiscal year 2017 results, we believe the Test and Sensors businesses are more complementary than ever before and will deliver greater value to our shareholders for years to come.”

Additional content:

French Stocks at 2-Year High on Macron Lead: 4 French Buys

Stockholders around the globe breathed a sigh of relief over how the first round of presidential election for France turned out. Emmanuel Jean-Michel Frédéric Macron won the round, beating euro skeptic candidates who could bring about a supposed ‘Frexit’. Macron will now face National Front candidate Marine Le Pen in a two-person runoff election on May 7.

Macron’s strong show in the first round helped French stocks gain traction, while European as well as U.S. equity markets cheered the development. In the view of this, investing in sound French stocks seems to be a prudent move for now.

French Stocks Finish Higher

The CAC 40 index jumped 4.1% to close at 5,268.85 on Apr 24, its highest one-day percentage gain since Aug 2012. The French benchmark also scaled its highest close since Apr 2015. In fact, the index was on track to reach a nine-year high, but settled for a little lower.

Bank stocks, predominantly, led the gains both in France and around the region. BNP Paribas SA, the country’s biggest lender rallied 8.55% to €67.32, while arch rivals Credit Agricole SA and Societe General SA posted respective gains of 8.9% and 9.8%. The region-wide Stoxx 600 Europe Banks index hit a new 52-week high of 183.22 after climbing 4.4% in the opening two hours.

France ETF Sees Biggest One-day Pop Since 2012

The largest exchange traded fund that tracks the French equity market also surged on heavy volume after Macron posted a strong performance in the first round of the country’s presidential election. The iShares MSCI France ETF rose 5.4%, its highest one-day uptick since Aug 2012. Thanks to the upward movement, the ETF catapulted to its highest level since Jun 2015.

About 340,000 shares were traded in the first few minutes of trading, thereby, helping the fund easily eclipse its 30-day average volume of 1.2 million. Investors have been concerned about the election results lately, as the ETF saw outflows of $57.4 million on Apr 21, the largest one-day redemption for the fund since Dec 2013.

French Election: Macron Wins First Round, ‘Frexit’ Fears Ebb

Investors feared the popularity of anti-European Union (EU) candidate Marine Le Pen as well as euro skeptic Jean-Luc Melenchon. Victory for one the candidates might lead to a move to withdraw France from the EU. We all know what happened to France after the U.K. opted to exit the EU last year. It sparked short-term volatility in France’s equity market, but, a ‘Frexit’ is expected to have far greater implications.

The overall market, however, rallied after early polls showed that Macron – a 39-year old former investment banker – had maintained a 20-point lead over its far-right competitor Marine Le Pen. Macron secured a 23.75% vote, while Le Pen the daughter of Jean-Marie Le Pen, who had run for President in 1995, won 21.53% of the vote. Both of them will face each other again in a run-off on May 7.

Macron had made it clear that he wants to keep France in EU, while Le Pen has committed to put a referendum in which the public will decide to leave or stay in EU, raising the spectre of a ‘Frexit’. The euro, in the meantime, bolstered on optimism that the EU will not break up.

In fact, there are early indications that several of the other candidates will urge their voters to support Macron in the final round, while conservative candidate Francois Fillon vowed to ask his supporters to vote for Macron. Fillion was eliminated in the first round after he secured 19.9% of the vote.

4 French Stocks to Bet On

Shares celebrated the prospects of Macron becoming France’s next president and the ebbing of ‘Frexit’ fears across Europe and the U.S. France’s stock market, in the meanwhile, hit a record high in election relief rally, which calls for investing in some solid stocks from the said nation. We have, thus, selected five French stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Ipsen S.A. (OTCMKTS:IPSEY – Free Report ) operates as a pharmaceutical company worldwide. The company was founded in 1929 and is headquartered in Boulogne-Billancourt, France. Ipsen has a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings rose 17% over the last 60 days.

The company is likely to return 25% this year, way higher than the Medical - Drugs industry’s estimated gain of 6.4%. Ipsen outperformed the broader industry in the last three months (+33.47% vs +2.38%).

AXA SA (OTCMKTS:AXAHY – Free Report ) provides insurance and asset management services worldwide. The company was founded in 1852 and is headquartered in Paris, France. AXA has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 0.4% over the last 60 days.

The company is likely to return 7.5% this year, higher than the Insurance - Multi line industry’s estimated gain of 6.6%. AXA outperformed the broader industry in the last three months (+9.41% vs -3.69%).

Arkema S.A. (OTCMKTS:ARKAY – Free Report ) produces and sells chemical products worldwide. The company was incorporated in 2003 and is headquartered in Colombes, France. Arkema has a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings advanced 4.2% over the last 60 days.

The company is likely to return 20.2% this year, more than the Chemical - Diversified industry’s estimated gain of 7.7%. Arkema outperformed the broader industry in the last three months (+3.06% vs -0.23%). You can see the complete list of today’s Zacks #1 Rank stocks here.

Societe Generale Group provides financial services in Europe and internationally. The company was founded in 1864 and is based in Paris, France. Societe Generale has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 2.1% over the last 60 days.

The company, which is part of the Banks - Foreign industry, is likely to give a stable return of 2.1% this year. Societe Generale outperformed the broader industry in the last three months (+9.29% vs -2.57%).

Zacks' Hidden Trades

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?

Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
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 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.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on CVGI - FREE

Get the full Report on MTSC - FREE

Get the full Report on IPSEY - FREE

Get the full Report on AXAHY - FREE

Get the full Report on ARKAY - FREE

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

Join us on Facebook: https://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

support@zacks.com

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

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
 
Commercial Vehicle Group, Inc. (CVGI): Free Stock Analysis Report
 
MTS Systems Corporation (MTSC): Free Stock Analysis Report
 
Asa SA (AXAHY): Free Stock Analysis Report
 
Arkema SA (ARKAY): Free Stock Analysis Report
 
IPSEN SA ADR (IPSEY): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research