For Immediate Release
Chicago, IL – July 07, 2016 – Zacks Equity Research highlights B2Gold (BTG) as the Bull of the Day and Aviva plc (LON:AV) (AV) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Netflix Inc (NASDAQ:NFLX). (NFLX), Comcast (NASDAQ:CMCSA) ( CMCSA) and Walt Disney Co. (DIS).
Here is a synopsis of all five stocks:
Easily one of the biggest stories this year has been the sudden and shocking rise in the price of gold. The yellow metal, which was mired in sluggish trading for years, has surged by close to $300/oz. so far this year, putting gold within striking distance of $1,400/oz. once more. This represents a roughly 30% gain in the first six months of the year, a level that easily crushes the broad market’s 2.4% gain in the same time period.
And as impressive as gold’s surge has been, it has been even more astounding when you consider how gold mining stocks have performed in this environment. Companies here often trade as a leveraged play to the underlying metal since increases or decreases in the price of gold often flow almost directly to the bottom line, so a surging gold price has been incredibly beneficial.
Take B2Gold (BTG) for example. This tiny, Vancouver-based gold miner has interests in a variety of mines on several continents, and its stock really struggled leading up to 2016’s surge. In fact, to kick off 2016, shares were testing $0.75/share before the sudden surge in gold sent this stock skyrocketing.
Shares of BTG are now testing $3.00/share and the company has added an outrageous 180% to start 2016. But even with this impressive jump, there is actually plenty of reason to think that more gains might be ahead for BTG.
Why BTG Could Still Go Higher
With the big gain in gold prices, analysts have been rapidly raising their estimates for BTG, believing that their earnings picture is looking more impressive now. The consensus estimate has doubled in the past two months for the current year, while we have seen great trends for the next year time period too. In fact, the most accurate estimate for next year looks for eight cents a share in earnings next year, quadruple the consensus estimate from just two months ago.
With the Brexit and its related fallout dominating market headlines, it has been a brutal time for UK-based companies. This is especially true for firms located in the insurance or financial industries as ultra-low rates have crushed growth prospects, while a slumping pound has sapped confidence too.
One company that has been a great example of this trend is Aviva plc ( AV), an insurance and savings giant based in London. Since the Brexit vote, shares have lost more than a quarter of their value as the factors above have sent investors running for the exits.
This slump comes despite promises of AV boosting its dividend payout ratio in 2017 to make the company an even more attractive choice for income investors, something that might usually help companies, but hasn’t done much in this case. After all, a dividend payout ratio hike is little assistance when rates are plunging—which makes income payments on insurance that much weaker—or considering the broad trend away from British assets.
AV has seen this exodus first hand as the company just had to suspend redemptions in a multi-billion dollar property fund that zeroes in on top-notch assets in the United Kingdom. Clearly, the deck is stacked against AV and the rest of this market for the near-term.
That Isn’t All
If this wasn’t enough of a reason to be bearish on AV in the weeks and months ahead, then investors should also consider some of the fundamental metrics for AV shares. Earnings estimates for the full year and next year time frame have been falling, while growth is expected to contract this year too.
Additional content:
Netflix (NFLX) Partners with The CW for Exclusive Streaming
Are you a Netflix subscriber, as well as a fan of angst-y, teen-focused television dramas? Well you’re in luck. Streaming video giant Netflix Inc. (NFLX) and The CW, a joint venture between CBS and Warner Bro. Entertainment, just reached an exclusive, multi-year deal that will allow Netflix to stream all past seasons of the network’s shows in the U.S.
Starting with the 2016-2017 season, hit series like The Vampire Diaries, The Flash, andSupernatural will become available to Netflix subscribers only eight days after the season finale airs, a big jump from the usual year or more subscribers have to wait. Critically-acclaimed shows like Jane the Virgin and Crazy Ex-Girlfriend are also included in the deal, along with other DC series Legends of Tomorrow, Supergirl, and Arrow.
"Netflix members in the U.S. love the great lineup of series from The CW, and we are thrilled to extend the relationship and bring those shows to our members exclusively now, just eight days after their season finales," said Netflix content head Ted Sarandos in a statement.“This is a great step forward with a valued network partner to give fans exactly what they want, when and how they want it.”
“Since the initial landmark deal in 2011, the CW’s programming has enjoyed tremendous success and increased exposure through Netflix, and our new agreement not only continues but enhances this valuable relationship,” said CW president Mark Pedowitz. “The CW has positioned itself for the future by transforming into a true hybrid network, rooted in broadcast while fully embracing the digital and streaming habits of the viewers.”
This is a huge deal for Netflix. Along with the company becoming accessible through Comcast’s (CMCSA) X1 platform as well as its blockbuster deal with Walt Disney Co. (DIS) — it is now the exclusive home for Disney movies, including those from Marvel, Lucasfilm and Pixar, starting this September — its deal with The CW makes its streaming subscription incredibly enticing.
It also makes it stand out much farther from the increasingly competitive streaming video industry. The exclusivity agreement most obviously hurts Hulu, where viewers are limited to only the last five episodes of a CW series’ current season at a time. The CW and Hulu did not come to terms for a further agreement once their current deal is done in October.
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B2GOLD CORP (BTG): Free Stock Analysis Report
AVIVA PLC-ADR (AV): Free Stock Analysis Report
NETFLIX INC (NFLX): Free Stock Analysis Report
COMCAST CORP A (CMCSA): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
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