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SOURCE Zacks Investment Research, Inc.
CHICAGO, Feb. 5, 2014 /PRNewswire/ -- Zacks Equity Research highlights Qihoo 360 Technology (NYSE:QIHU-Free Report) as the Bull of the Day and Citrix Systems (Nasdaq:CTXS-Free Report)as the Bear of the Day. In addition, Zacks Equity Research provides analysis onCheniere Energy (AMEX:LNG-Free Report), Cabot Oil & Gas (NYSE:COG-Free Report) and Athlon Energy (NYSE:ATHL-Free Report).
Here is a synopsis of all five stocks:
With the coming IPO of China's largest e-commerce portal, Alibaba, investors are looking for more ways to play the massive growth of the world's largest common-language/culture Internet market. Alibaba, who is still owned 24% by Yahoo, last week posted a big quarterly profit gain -- its fourth straight -- of $792 million on sales that surged 51% to $1.78 billion.
Until that potential IPO of the "Amazon of China," which is projected to be valued at as much as $190 billion, I am buying a young upstart in the Chinese web jungle: Qihoo 360 Technology (NYSE:QIHU-Free Report), the country's largest Internet security provider, with over 461 million monthly active users, representing a penetration rate of 96% in the biggest web market.
I first wrote about QIHU last September when I saw them taking the #2 spot in search next to the giant Baidu…
The Story is Out
Qihoo 360 Technology offers a broad spectrum of Internet and mobile security products. Its core Internet and mobile security products include 360 Safe Guard and 360 Anti-virus 360 Mobile Safe, 360 Safe Browser, 360 Personal Start-up Page, 360 Application Store and 360 Safebox.
In a brilliant strategy move, Qihoo 360 began offering its cloud-based Internet security products for free to users. And this has allowed them to monetize their significant audience through online advertising services, including paid links as well as Internet value-added services, such as offering access to third-party Web games and virtual items.
Citrix Systems (Nasdaq:CTXS-Free Report) has a fantastic webinar platform that I find easy to use and it's great how the GoToMeeting software loads quickly to your desktop. Of course the company is also a leading provider of virtualization software and networking and cloud computing solutions to more than 230,000 organizations worldwide.
But the company's earning's profile and resultant stock performance over the past year is another matter altogether. And they gave us nothing to cheer about last week when they reported mixed financial results for the fourth quarter of 2013.
While net income surpassed the Zacks Consensus Estimate, total revenue missed the same. Following the results, management significantly slashed its earnings per share projection for the next quarter. Citrix shares gapped down 10% the next day not just to a new 52-week nadir, but to lows under $52 not seen since August of 2011.
Wall Street analyst earnings estimate revisions the week before this quarterly report pushed CTXS back down to a #4 Rank (Sell) on January 25 warning investors 3 days before the event and giving them a chance to exit at $59.
Winter Weather Whips Up Winners
So this is what winter is supposed to feel like huh? Unless you're one of the lucky few breaking flip flops in Key West, chances are you've felt the sting of cold weather and the angry end of the new phrase that pays "Polar Vortex." While it may sound like a finishing move for Subzero or Mr. Freeze's getaway car, what it means is cold. Very cold.
Natural Gas Rally
The result has been continued price pressure on Natural Gas. I can see T. Boone Pickens rubbing his hands together and giggling like a school girl as we speak. In fact, Nat Gas futures have made an all-out assault on $5, spiking higher near $5.50 before a brief pullback that set the stage for today's rally over $5.25.
Three Stocks That Benefit
Even at current prices the US still enjoys a huge discount compared to what they pay in Europe and especially Asia. This price difference has led to continued conversations about the possibility of opening up the commodity for exportation. If exports were allowed the increased demand would send Nat Gas prices higher and lower America's current price advantage. Cheniere Energy (AMEX:LNG-Free Report) operates the Sabine Pass LNG Terminal along the border between Texas and Louisiana which is the largest receiving terminal by regasification capacity in the world. If Nat Gas were exported, there would not be enough Beano around to slow the stock down. Even if the US keeps its energy doors shut higher Nat Gas prices are bullish for Cheniere.
In addition to LNG tankers, increased prices would be great for companies like Cabot Oil & Gas (NYSE:COG-Free Report) who are involved in exploration and development of energy properties. The company has already seen earnings estimates increase for next year. Cabot reports earnings on February 20th after the market close and analysts are looking for $0.17 a share out of Q4. Cabot has a history of earnings growth and the stock price has appreciated along with the growth.
A relative newcomer to the publicly traded market, Athlon Energy (NYSE:ATHL-Free Report) is an exploration company with operations primarily in the Permian basin of West Texas. In the last 30 days, three analysts have revised earnings to the upside. This bullish revision along with a positive outlook for Nat Gas has ATHL at a Zacks #1 Rank.
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