For Immediate Release
Chicago, IL – March 8, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Abercrombie and Fitch (ANF), Kroger (KR), Manpower (MAN), Kelly Services (KELYA) and Wendy’s/Arby’s Group, Inc. (WEN).
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Here are highlights from Friday’s Analyst Blog:
Jobs Report Better than Expected
With the unemployment rate flat overall, one would expect mixed results when we look at the major demographic groups, and that is what happened. The unemployment rate for adult men was unchanged at 10.0%, but down from the 10.2% rate in December, though still well above the 8.4% rate of a year ago. The rate for adult women ticked up to 8.0% from 7.9% but was below the 8.2% rate in December, though well above the 6.8% rate a year ago.
This recession has been particularly brutal for men, in part because they are over-represented in some of the industries like construction that have been hit the hardest. There was a solid improvement in the unemployment rate for teens, but it is still abysmally high at 25.0%. Still, that is a nice improvement from the 26.4% rate in January and the 27.1% rate in December, though a year ago it was 21.8%.
But having a job is not as critical for most teens as it is for adults. For most, that money goes towards putting gas in the car and new clothes from Abercrombie and Fitch (ANF), rather than for paying the electric bill, the mortgage or groceries from Kroger’s (KR). Those jobs do teach basic work skills, however, and for many, those jobs also help put them through college.
The private sector actually added 42,000 jobs in the service sector. More than all of those (net) jobs, though, came from temporary help services like Manpower (MAN) and Kelly Services (KELYA).
Temp jobs increased by 47,500 in February. While those are not the best-paying or most desirable jobs in the country, they are a very important positive omen. The rise in temp jobs in February comes on top of gains of 50,200 in January and 49,700 in December.
Why is this a good omen? Because when businesses start to see things picking up, the first thing they are going to do is increase the hours of their existing workforce. This is particularly true if those hours had been cut back on earlier in the recession. However, they might not be confident enough to bring on new full-time employees, particularly if they pay benefits as well. So the first step is to call up Manpower and say send someone over.
Wendy’s/Arby’s Beats Estimate
Wendy’s/Arby’s Group, Inc. (WEN), the third largest fast-food restaurant operator, recently reported better-than-expected fourth-quarter 2009 results. The quarterly earnings of 7 cents a share surpassed the Zacks Consensus Estimate of 3 cents, and rose 40% from 5 cents a share delivered in the prior-year quarter.
In the third and second quarters of 2009, WEN’s earnings were in line with the consensus estimate. However, in the first quarter, earnings missed the consensus estimate by 66.7%.
On a reported basis, the company delivered a quarterly loss of 3 cents a share, a substantial improvement from a loss of 84 cents posted in the year-ago quarter.
Wendy’s/Arby’s Group has undertaken a massive remodeling program, and is also investing to improve Wendy’s breakfast line-up and expand Arby’s Value Menu offerings to drive traffic and improve sales. The company expanded the $1 Value Menu to more than 2,500 Arby’s restaurants, after its $5.01 combo meals failed to gain traction.
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