Malibu Boats, Campbell Soup, Toyota Motor, Micron Tech and Luxoticca Group highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – October 3, 2017 – Zacks Equity Research Malibu Boats (Nasdaq: MBUU – Free Report) as the Bull of the Day, Campbell Soup (NYSE: CPB – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Toyota Motor (NYSE: TM – Free Report), Micron Tech (Nasdaq: MU – Free Report), Luxoticca Group S.p.a (OTCMKTS: LUXTY – Free Report).

Here is a synopsis of all five stocks:

Bull of the Day:

Malibu Boats (Nasdaq: MBUU – Free Report) is a Zacks Rank #1 (Strong Buy) and is the Bull of the Day.  A few months ago, this stock landed on my radar screen as I looked at a number of leisure stocks based on the idea that if my neighborhood was blowing up with all those fireworks, others people probably have even more cash for discretionary purchases. You can read that article later.

Description

Malibu Boats. operates as a designer, manufacturer and marketer of sport boats primarily in the United States. The Company sells its boats under two brands: Malibu and Axis Wake Research. Its sport boats used for water sports including water skiing, wakeboarding and wake surfing as well as for general recreational boating use. Malibu Boats, Inc. is based in Loudon, United States.

Earnings History

The earnings history for this stock looks pretty good with five straight beats of the Zacks Consensus Estimate. 

Earnings Estimates

As a Zacks Rank #1 (Strong Buy) we know that estimates have been moving higher. In August the Zacks Consensus Estimate for 2017 saw a four cent increase and was at $1.72.  The stock finished the month of September with a $1.82 number, so an increase of a dime from the previous month.  This acceleration of growth in earnings estimates is just what we like to see.

Bear of the Day:

Campbell Soup (NYSE: CPB – Free Report) is a Zacks Rank #5 (Strong Sell) after the company has missed the last two earnings reports.  Along with those two misses, estimates for the year and the next two-quarters.  For that reason, it is the Bear Of The Day.

Description

Campbell Soup Company, together with its consolidated subsidiaries, is a global manufacturer and marketer of high quality, branded convenience food products. The company operates in three business segments: Soup and Sauces, Biscuits and Confectionery, and Away From Home.

Earnings History

The company has missed two of the last four reports.

While soup is a staple, investors may be wise to take a deep look at this stock.  The stock is down, but sales have continued to grow.  This fiscal year will see growth of around 1% and is looking for 1.5% for next year.  Analysts are expecting EPS growth of 2% this fiscal year and 4% next fiscal year.  Those growth numbers are below the industry average, but that could bring activists into this name.

Additional content:

Spanish Rebellion Unfolds: Global Week Ahead

For this Global Week Ahead, I ranked five themes in their order of importance.

Yes. I see the nascent Spanish rebellion as important, Yet, I don’t see it as important as the state of the U.S. economy -- and the already high valuation of major large-cap share indexes. 

There’s been very little volatility associated with owning major stocks this year. That may be about to change. When it’s too easy to make money, that is the best time to mark up your worries.

1. October Can Punish Stocks

This is the month to bet on a stock market correction. Research by Renaissance Capital (gratis Reuters) showed that nine of the top 20 daily percentage declines in the DJIA since 1896 landed in October.

That's well above any other month. The next is September, with three.

2. Fed Speaks, Latest Payroll Data Hits

As with any first week of a month, the latest jobs market fundamentals will drive risk markets.

On Friday, the U.S. non-farm payroll report for September is out. Look for data to be similar to August. That was recorded as +156K with a 4.4% unemployment rate.

In last week’s U.S. macro data release, the Fed's favored measure of inflation increased in July at its slowest annual rate since Nov. 2015. The core PCE (personal consumption expenditures) inflation has slowed to +1.3%. This is well below the Fed's +2.0% target.

To help out here, traders get a number of in-person Fed updates this week. Chair Yellen speaks briefly Wednesday. She offers opening remarks at a community bank conference.

The rest of the FOMC speaks later. Governor Powell speaks on Tuesday and Thursday about regulatory reforms and Treasury markets. NY Fed President Bill Dudley speaks on Friday about the monetary policy outlook.

Regional Presidents Kaplan (Monday), Williams, Harker and George (Thursday), and then Bostic, Kaplan and Bullard (Friday) speak last.

3. Spain’s Catalan Region Experiences Political Turmoil

Catalonia’s president signaled. This northern Spanish region containing Barcelona (and bordering France) will declare independence from Spain in the coming days.

More than 2 million Catalan people defied attempts by the central government in Madrid to halt Sunday’s illegal referendum to back independence. More than 800 were injured.

4. President Trump’s Approval Rating Tracks the U.S. Dollar

This year, the U.S. dollar's swoon has moved in lockstep with U.S. President Donald Trump's slipping job approval rating. A modest improvement in his ratings — starting in September — has also been met with a firmer U.S. dollar.

The President and First Lady visit hurricane-wrecked Puerto Rico and the U.S. Virgin Islands on Tuesday.

5. Can Emerging Market Stocks Keep HOT?

After a bruising week for emerging markets, investors will see whether this year's risk-on momentum rally here gets back on track.

Top Zacks #1 Rank (STRONG BUY) Stocks:

A. Toyota Motor (NYSE: TM – Free Report): This is the $178 billion market cap global automotive maker, with its key base of operations in Japan. I see a hard-to-find Zacks long-term Zacks VGM score of A here. Ditto for Honda.

Japanese markets are moving up. Macro fundamentals related directly to manufacturing are strengthening in Japan and Asia (all driven by Mainland China). It may be time to rotate into Japanese auto stocks.

B. Micron Tech (Nasdaq: MU – Free Report): This Idaho-based memory chipmaker is on a big trading momentum roll. It may not be over. The long-term Zacks VGM score is still an A.

Semiconductor chip market history looks spooky to many. Bearish analysts are concerned the memory chip cycle is peaking, so the market is not pricing MU stock aggressively. Bullish covering analysts say “this time is different.” Choose your side on that one.

C. Luxoticca Group S.p.a (OTCMKTS: LUXTY – Free Report): This maker of high quality sunglasses. It is based in Northern Italy. Watch how the stock performs in the face of the volatile Catalan situation. I see a Zacks #1 Rank and a long-term Zacks VGM score of B.

Will improving GDP growth fundamentals in Europe trump the latest turbulence? Those are the bull and bear camps over in Europe in the week ahead.

Key Global Macro—

For traders — as usual with the start of any month — the dominant macro facts hail from the jobs data. The private ADP payroll report is out on Wednesday. The latest U.S. Federal payroll report is out on Friday.

Here is the chronology of the trading tape, as it relates to macro data & events:

On Monday, the manufacturing PMI index in a final version came in at 56.1 for France and 60.6 for Germany.

For the U.K., the CIPS/Markit manufacturing PMI was 55.9 vs. expectations for 56.7.

The U.S. ISM manufacturing PMI will come out later today. Look for 58.5.

Two big readings will come from Latin America’s biggest economy. The Markit PMI for manufacturing in Brazil (currently at 5.12) and the CNI capacity utilization index in Brazil (currently at 77.5).

Recall, this country is emerging from a recession and major political turbulence.

On Tuesday, the Reserve Bank of Australia (RBA) comes out with its latest overnight policy rate. It is at 1.5% and is not likely to change. There has been no recession in Australia in 35 years.

The Eurozone PPI comes out. It has been 2.0% y/y.

The National Bank of Poland (NBP) issues its base rate. That has been 1.5%.

On Wednesday, the final French and German services PMIs come out. These have been 57.1 and 55.6.

The Composite (Final) PMI for the Eurozone as a whole comes out. That has been 55.6.

The Eurozone’s retail sales data comes out. It has been 2.6% y/y.

The private U.S. ADP employment survey comes out. It has been 237K last month.

On Thursday, the proxy GDP for Chile comes out. Recall, this is a big copper mining country. The last version was +2.8% y/y. The forecast is for +2.5% y/y.

The Fed’s Powell and Dudley speak in NYC.

U.S. initial claims for this week hits. The latest was 272K. That’s a low number.

The Fed’s Williams speaks in St. Louis and the Fed’s Harker and George speak at a workforce conference in Austin, TX.

On Friday, Moody’s rates U.S. sovereign debt.

The U.S. non-farm payroll report for September is out. Look for data to be similar to August. That was recorded as 156K with a 4.4% unemployment rate.

Canada’s unemployment rate comes out. It has been 6.2%.

The Fed’s Dudley, Kaplan, and Bullard speak on monetary policy.

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 >>.

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Toyota Motor Corp Ltd Ord (TM) : Free Stock Analysis Report
 
Campbell Soup Company (CPB) : Free Stock Analysis Report
 
Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
Luxottica Group, S.p.A. (LUXTY) : Free Stock Analysis Report
 
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