Chicago, IL – January 21, 2016– Zacks Equity Research highlights Nautilus Inc. (NLS) as the Bull of the Day and Consol Energy (CNX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Lannett Inc. (LCI), Unitedhealth Group ( UNH) and Johnson & Johnson (JNJ ) . Here is a synopsis of all five stocks: Bull of the Day: One of the most common New Year’s resolutions is to lose weight, and or to get fit for the New Year. This pledge brings in tons of new clients to gyms, nutrition centers, and online exercise retail outlets in the beginning of each new year. These people purchase gyms memberships, and purchase exercise equipment at a very high rate during this time of the year. One of the leading lifestyle and exercise companies is Nautilus Inc. ( NLS), and they are the Zacks Bull of the Day. This Zacks Ranked #1 (Strong Buy) company helps people achieve a fit and healthy lifestyle through proper exercise, rest and nutrition. With a brand portfolio that includes Nautilus, Bowflex, SchwinnFitness, StairMaster and Trimline, Nautilus manufactures and markets a complete line of innovative health and fitness products through direct, commercial and retail channels.
The company recently posted preliminary unaudited results for the fourth quarter, and 2015 results. The report showed that quarterly net sales improved +15% from the year ago quarter, and full year net sales rose +22% when compared to FY 14. Management expects to see FY 15 earnings per share from continuing operations are expected to be in a range of $0.85-$0.87, which would be a 32-36% year over year gain.
Also, the company finalized their $115 million dollar deal to purchase Octane Fitness LLC, a leading fitness products company. According to Bruce Cazenave, CEO, “We are pleased to report another quarter and year of solid top line growth. Our fourth quarter results reflect increased sales for both our Direct and Retail segments, including continued strong consumer demand for the Max Trainer product line as well as strong contributions from new product categories for our retail business. The recently announced addition of Octane Fitness to our portfolio in 2016 will help to further strengthen our position in the fitness market and provide significant profitable revenue acceleration opportunities through product and channel diversification. I am extremely proud of our dedicated employees for their outstanding efforts in delivering these results and for their hard work in continuing to build strong growth platforms for the future.” Bear of the Day : There are two energy segments that have seen more negative pressure than the rest; Exploration and Productions (E&P), and coal. The declining oil prices have made it more and more difficult for E&P companies over the past several months, and U.S. coal production was down 32.7% year over year for the week ending January 2, 2016. Unfortunately, there is one company that serves both segments, Consol Energy ( CNX), and is the Zacks Bear of the Day. This Zacks Rank #5 (Strong Sell) is an integrated energy company operated through two primary divisions, oil and gas exploration and production (E&P) and coal mining. The E&P division is focused on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. The coal division is focused on the extraction and preparation of coal, also in the Appalachian Basin.
Both oil and coal are going through similar difficulties; oil prices dipping below $30 with inventories at 80 year highs, and coal prices declining with inventories +13.6% above the 10 year average. Further, the utilization of coal for power generation declined -25.2% YoY, and was down -3.7% against the 10 year average. Further, there seems to be zero respite for these energy prices in the near or mid-term.
In the company’s most recent earnings announcement, Consol posted their second consecutive earnings miss with a -410% decline YoY. Also, the ever important metric, cash flow from operations, declined -62.5% from the year ago quarter. Further, the company posted an adjusted net loss of $64 million for the third quarter 2015. Additional content: How to Screen for the Best Stocks in a Volatile Market Welcome to Episode #14 of the Zacks Market Edge Podcast. Every week, host and Zacks stock strategist Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. In this episode, Tracey is joined by Zacks ' Vice President, Editor of the Options Trader service and Zacks stock screening guru, Kevin Matras. The stock market is rocky to start the year, how can investors keep their emotions in check to find the best stocks to invest in? Kevin ' s advice is to have a plan, whether it be stop-losses or something else, and stick to it. Kevin also divulges his favorite stock screens that use both fundamental and technical analysis to find the best Zacks #1 (Strong Buy) and #2 (Buy) stocks. They are screens he runs all the time. If you ' re going to be invested in a volatile stock market, you might as well buy the stocks that have the best fundamentals. Kevin and Tracey also talk about the more basic stock screens that anyone can run that you can find on Zacks.com on the Screening tab. If you’re a Zacks Premium member, or if you take the 30-day free trial, you can access 20 more predefined screens that combine the Zacks Rank with Growth and Value criteria. These are some of the screens that Tracey runs regularly. Finally, Kevin and Tracey have stocks that they like even though this market seems ominous. They have different trading strategies. Kevin screens for stocks near their highs with solid fundamentals. Tracey likes stocks that have sold off. They both like the healthcare sector, with Lannett Inc. (LCI), Unitedhealth Group (UNH) and Johnson & Johnson ( JNJ) being top picks. But a utility company, yes, a utility, and a defense contractor also make the grade. Still nervous about this stock market? Listen to this week's podcast for Kevin and Tracey ' s best ways to play this market pullback. 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 >> 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 NAUTILUS INC (NLS): Free Stock Analysis Report CONSOL ENERGY (CNX): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report UNITEDHEALTH GP (UNH): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here.
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