For Immediate Release

Chicago, IL – October 14, 2014– Zacks Equity Research highlights Weyerhaeuser (WY-Free Report) as the Bull of the Day and Elizabeth Arden (RDEN-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Eni SpA (E-Free Report), SAP SE (SAP-Free Report) and Sanofi (SNY-Free Report).

Here is a synopsis of all four stocks:

Bull of the Day:

With strong revenue growth potential and excellent cost management, Weyerhaeuser seems to be a position to deliver another positive surprise when it reports its earnings later this month.

Structured as a REIT, Weyerhaeuser (WY-Free Report) is one of the world's largest private owners of timberlands, with about 7 million acres of timberlands primarily in the U.S., and another 14 million acres under management in Canada.

Weyerhaeuser is also one of the largest manufacturers of wood and cellulose fibers products. Earlier they also developed real estate, primarily as a builder of single-family homes but they completed the split-off of their real estate operations in June this year. With the divesture they plan to focus on their core wood products business.

On August 1, Weyerhaeuser reported its second-quarter results. Adjusted earnings for the quarter were $0.40 per share, up 21.2% year over year and above the Zacks Consensus Estimate of $0.34 per share.

Net sales came in at $1,964 million, up 4.8% year over year, with 19.2% growth from the Timberland segment , which accounted for 20.2% of net sales. The Wood Products segment s revenues, accounting for 54.8% of net sales, were $1,077 million, up from $1,065 million in the year-ago quarter and revenues from the Cellulose Fibers segment increased 2.9% year over year to $490 million and accounted for 24.9% of net sales.

Bear of the Day:

Weak consumer demand and highly promotional retail environment has been posing headwinds for retailers in general. Some of these stocks still look very weak despite significant pull back recently.

Elizabeth Arden (RDEN-Free Report) is a beauty products company that makes high-end cosmetics, skin-care products and fragrances. It has an extensive portfolio of beauty brands sold in over 120 countries.

Elizabeth Arden reported its fiscal fourth-quarter (ended June 30) results on August 19. Revenues declined 24.8% year over year to $201.2 million, missing the Zacks Consensus Estimate of $245 million by 21.8%.

Loss per share of $1.04 was also worse than the Zacks Consensus Estimate of a loss of $0.29 per share by 96.4%. The results also compared unfavorably with earnings of $0.10 per share in the prior-year period, thanks mainly due to lower sales.

Revenues also missed management’s expectations due to higher-than-expected sales decline in celebrity fragrances, especially the Justin Bieber and Taylor Swift brands. Gross margin contracted 900 basis points to 40.2% in the quarter due to sluggish top-line growth.

Additional content:

Eurozone Triple-Dip? 3 Stocks to Dump

The International Monetary Fund (:IMF) expressed concern over stagnant growth in the Eurozone in its latest global economic outlook. IMF believes the Eurozone faces a 1-in-3 chance of slipping back to recession in the near future. This is the third time IMF downgraded its global economic growth forecast this year, citing weakness in the Eurozone to be one of the primary reasons for the slowdown.

Eurozone Economy Losing Steam

According to the IMF, the Eurozone’s probability of re-entering a recession in the next six months has nearly doubled to 38% since April. This is more than rest of the world’s chance of 33%. IMF believes there is a 40% chance of the Eurozone falling into recession in the next 12 months. There is also a 30% possibility of the Eurozone sliding into deflation during the same period.

To top it off, there is a 30% chance that consumer prices might drop between this month and June of next year. IMF stated inflation in the Eurozone has moved south, “indicating risks of outright deflation or a protracted period of very low inflation.”

Additionally, IMF expects the Eurozone’s GDP to grow a meager 0.8% in 2014. This is way below the U.S. and Britain ’s projected growth rate of 2.2% and 3.2%, respectively. IMF predicts that the Eurozone’s three largest economies – Germany , France and Italy – are poised to enter their third successive year of recession. Let’s take a look at these economies’ recent progress:

Major Economies Look Weak

Germany : An unexpected decline in German industrial output during the month of August is the latest indication that outlook for Europe ’s largest economy is worsening. Last Tuesday, data from the country’s economy ministry showed industrial output plunged 4% in August.

According to FactSet, this is the biggest drop in industrial output since 2009. The data came in after factory orders decreased by 5.7% in August, the biggest fall since 2009.
Last Thursday, the Federal Statistics Office reported that exports in Germany plunged 5.8% in August, registering its biggest drop since early 2009. This disappointing data increased fears about recession in Europe ’s biggest economy.

German business confidence also took a beating after the Business Climate Index produced by IFo dropped to 104.7 in September for the Eurozone, touching the lowest level since Apr 2006. Separately, Markit’s retail purchasing managers’ index (PMI.V) showed Germany ’s retail sector scored 47.1 in September, worst level in the last 53 months.

France : The Eurozone’s second largest economy witnessed declines in both manufacturing and servicing activities in September. Markit’s overall purchasing managers’ index, which includes both manufacturing and services sectors, was at 48.4 in September, signifying contraction. Markit’s retail purchasing managers’ index showed France ’s retail sector too posted an 18-month low score of 41.8 in September.

Italy : The Eurozone’s third largest economy saw improvements in manufacturing activity but registered declines in servicing activity last month. The Markit/ADACI Business Activity Index for the service sector in Italy dropped to 48.8 in September from 49.8 in August. The index contracted for the second month in a row in September.

Weaker Bourses

The benchmark DAX 30 index slipped 1.3% on Tuesday following Germany ’s dismal industrial output report. The index tanked almost 8% year-to-date and is on track to post its first yearly loss since 2011. France ’s CAC 40 is also down 5.2% year-to-date. Separately, the Italian FTSE MIB gained 1.2% year-to-date. However, since last Tuesday, the index lost 4%.

To put things in perspective, the Stoxx Europe 600 Index has entered the negative territory. The index has moved down 1.7% this year. Last week turned out to be the worst week for the index since May 2012. The index posted a 4.1% weekly drop.

Gloomy Outlook

The Eurozone’s business expanded at the slowest rate this year in September. The final composite PMI for the Eurozone touched a 10-month low of 52, last month. Chris Williamson, chief economist at Markit, said: “The PMI suggests the Eurozone economy remained stuck in a rut in the third quarter.”

Another survey by Sentix, showed investor sentiment in the Eurozone was negative 13.7 in October, hitting the lowest level since May 2013. Sentix said: “While expectations were only just below the zero-mark in September, they are now clearly in negative territory and that means a technical recession in the Eurozone – two consecutive quarters of contraction – is ever more likely.”

European Central Bank (:ECB) continued to keep key interest rates unchanged and decided to buy assets for a minimum of two years.

3 Stocks to Sell Now

Given the disappointing economic scenario in the Eurozone, it will be a prudent idea to stay away from the following stocks:

Eni SpA (E-Free Report) is involved in the oil and natural gas exploration, and field development and production activities. The company is based in Rome , Italy . In the past two months, the Zacks Consensus Estimate for the current year was revised 3.7% lower.

Current year expected earnings growth rate for this Zacks Rank #4 (Sell) stock is negative 2.5%, in contrast to the industry growth rate of 13.8%. The stock lost 13.5% in the last four weeks. It has a Zacks Industry Rank in the bottom 30%.

SAP SE (SAP-Free Report) provides enterprise application software and software-related services worldwide. The company was founded in 1972 and is headquartered in Walldorf , Germany . In the past two months, the Zacks Consensus Estimate for the current year was revised 1.1% lower.

This year’s expected earnings growth rate for this Zacks Rank #4 (Sell) stock is a negative 12.2%, in contrast to the industry growth rate of 4.8%. The stock lost 11.2% in the last four weeks. It has a Zacks Industry Rank in the bottom 41%.

Sanofi (SNY-Free Report) researches, develops, manufactures and markets healthcare products. The company was founded in 1970 and is headquartered in Paris , France . Over the past two months, the stock has seen the Zacks Consensus Estimate for the current year moving 1.4% lower.

Current year expected earnings growth rate for this Zacks Rank #4 (Sell) stock is a meager 1.3%. The stock lost 7.1% in the last four weeks. It has a Zacks Industry Rank in the bottom 17%.

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