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SOURCE Zacks Investment Research, Inc.
CHICAGO, Feb. 25, 2014 /PRNewswire/ -- Zacks Equity Research highlights Dixie Group (Nasdaq:DXYN-Free Report) as the Bull of the Day and Arctic Cat Inc. (Nasdaq:ACAT-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Och-Ziff Capital Management Group LLC (NYSE:OZM-Free Report), Six Flags Entertainment Corp. (NYSE:SIX-Free Report) and Calamos Asset Management Inc. (Nasdaq:CLMS-Free Report).
Here is a synopsis of all five stocks:
Extreme weather conditions are currently taking a toll on the housing industry but once weather conditions improve, the industry may bounce back. Further, upper-end residential segment of the industry remains resilient to higher mortgage rates and it is expected to maintain its positive momentum during 2014.
The Dixie Group (Nasdaq:DXYN-Free Report) is a manufacturer and of marketer of carpet and rugs to high-end residential customers through the Fabrica International, Masland Residential and Dixie Home brands. The company began its operations in 1920 and transitioned from textiles to floorcovering in the 1990s.
In 2004, it refined its focus on upper-end markets-both commercial and residential. The company is known for its innovative styling, design and colors.
On Feb 19, DXYN reported its fourth quarter operating results. Sales jumped 34.7% year-over-year to $95.8 million--highest level since the company's reconfiguration in 2003. The company recorded growth in all areas of the business, with residential products up 30.5% and commercial products up more than 45%.
Dixie's performance was significantly better than industry both in the commercial and residential products for both the quarter and the year. During FY 2013, 58% of the sales were derived from the residential market, while 42% were from the commercial market.
Estimates have come down after disappointing third quarter results, sending ACAS to a Zacks Rank # 5 (Strong Sell).
About the Company
Headquartered in Thief River Falls, MN, Arctic Cat Inc. (Nasdaq:ACAT-Free Report)is a designer, manufacturer and marketer of All-terrain vehicles (ATVs) & Side-by-Sides, Snowmobiles, and Parts, garments & accessories.
During FY 2013, ATV and Side-by-Sides contributed 45% of sales and Snowmobiles accounted for 39%.
On December 31, 2013, ACAT reported its Q3 2013 results--that missed both on the top and bottom line. Net sales for the quarter increased 4% year-over-year to $225.8 million. While ATV sales increased 12% to $78.2 million, driven mainly by Side-by-Side sales, Snowmobile sales declined 4% to $118.1 million.
Gross profits declined for the quarter to $40.2 million from $50.8 million reported in the prior-year quarter. According to the management, sales of lower margin Yamaha snowmobiles and the weaker Canadian dollar and product mix contributed to the decline.
Profitable Mix: Dividend + Zacks Rank #1
After high political and economic drama in 2013, the year 2014 began on a soft note given the not-so-convincing emerging economies, the loss of steam in stock markets and a severe winter that locked consumers indoors. Last Friday, both the S&P 500 and Dow Jones Industrial Average shed approximately 0.2%, while The Nasdaq Composite Index has fallen about 0.1%.
Despite volatility in the indices, market analysts' are hopeful that the U.S. economy will gain strength as the year progresses and register GDP growth of about 3%. Moreover, the scaling down of the monthly bond buying campaign is hinting at an economic recovery. However, the statements are not enough to boost investors' confidence.
Thus, investors will obviously prefer to bet their bucks in the safer counters. Investors, in order to shield themselves from the upheavals the financial world is susceptible to, will diligently choose their portfolio of stocks that can give them the best returns. On that note, while building the portfolio, one should not ignore the Dividend Yield, which can also enhance the total return.
Investors prefer an income generating stock and a dividend paying stock is always a preferable option. Meanwhile, keeping the hard cash in the bank's locker is a much safer alternative than investing in stocks, so offering higher return on stocks becomes obvious to compensate the risk undertaken. Higher dividend growth companies have a better chance to attract investors that in turn provides an impetus to the share price.
People looking for regular income from stocks are most likely to be inclined toward those companies that have a track record of consistent and incremental dividend payments. Although increasing the dividend remains one of the tools, the company's fundamentals should also be factored in before arriving on an investment decision. It would be a good idea to look at the stocks' Zacks Rank before investing in them, as a solid rank indicates favorable estimate revisions by analysts who are optimistic on the company ' s future performance.
Thus we provide you a Profitable Mix: Dividend + Zacks Rank #1 Stock. Here we discuss 3 Zacks Rank #1 stocks that can enrich your portfolio:
Och-Ziff Capital Management Group LLC (NYSE:OZM-Free Report) has a dividend yield of 33.06% with long-term earnings growth expectation of 16.5%. The company has witnessed favorable estimate revision in the last 30 days with the Zacks Consensus Estimate for 2014 and 2015 surging 8.5% and 10.1%, respectively. This New York-based institutional alternative asset management company had registered positive earnings surprise over the trailing four quarters with an average beat of 43.1%.
Six Flags Entertainment Corp. (NYSE:SIX-Free Report) has a dividend yield of 4.70% with long-term earnings growth expectation of 10%. This Grand Prairie, Texas-based company has seen the Zacks Consensus Estimate for 2014 go up by 3.9%. This operator of regional theme, water, and zoological parks had registered a positive earnings surprise over the trailing four quarters with an average beat of 42.6%.
Calamos Asset Management Inc. (Nasdaq:CLMS-Free Report) has a dividend yield of 4.37% with long-term earnings growth expectation of 10%. The company has registered upward estimate revision in the last 30 days with the Zacks Consensus Estimate for 2014 and 2015 increasing 1.9% and 7.1%, respectively. This Naperville, Illinois-based diversified global investment firm had registered positive earnings surprise over the trailing four quarters with an average beat of 55.1%.
We believe that the above-mentioned stocks have strong fundamentals and growth prospects that can quench investors' appetites for market winners. As U.S. stocks look for a survival strategy, a sneak peek into the space for some possible outperformers backed by a Zacks Rank #1 and a healthy dividend yield could be handy for investors.
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