The Zacks Analyst Blog Highlights: Molina Healthcare, TRW Automotive Holdings, Goldman Sachs Group, China Automotive Systems and Wabash National
For Immediate Release
Chicago, IL – July 14, 2014 – 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 the Molina Healthcare Inc. (NYSE:MOH-Free Report), TRW Automotive Holdings Corp. (NYSE:TRW-Free Report), Goldman Sachs Group, Inc. (NYSE:GS-Free Report), China Automotive Systems Inc. (Nasdaq:CAAS-Free Report) and Wabash National Corp. (NYSE:WNC-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
Molina Healthcare’s Implementation of Health Plans Shows Potential
On Jul 10, 2014, we issued an updated research report on Molina Healthcare Inc. (NYSE:MOH-Free Report). We believe that the implementation of the health plans in various states, growth of new contracts and increased membership across its health plans position the company to generate higher revenues going forward.
Notably, Molina Healthcare has increased its membership base through creation of new health plans and development of the existing ones, thereby increasing premium revenues. The acquisition of the Lovelace Community Health Plan contract and the State Coverage Insurance (SCI) program of New Mexico have also contributed to membership increase. Additionally, going forward, Molina Healthcare’s ability to offer certified Qualified Health Plans (QHPs) on the California Health Benefit Exchange and selection by Covered California should boost its membership in California.
The health plans of Molina Healthcare like those in California, Ohio, New Mexico, Washington and South Carolina resulted in increased membership effective Jan 2014, as these were selected to take part in the dual-eligible demonstration projects. While the Illinois health plan commenced serving dual-eligibles in Mar 2014, the rest are expected to begin serving these members by 2014 and early 2015.
Moreover, this Zacks Rank #1 (Strong Buy) stock has been witnessing a steady increase in premiums and service revenues over the past several years. Furthermore, with the approval of the Medicaid expansion in Ohio (fourth largest health plan in terms of enrollment), memberships and consequently, revenues are expected to improve further.
TRW Gets Buyout Offer from German Firm
TRW Automotive Holdings Corp. (NYSE:TRW-Free Report) has received a preliminary, non-binding proposal of acquisition. Though the company did not name the bidder, some sources reveal Germany’s ZF Friedrichshafen AG as the potential buyer.
Based in Friedrichshafen in southern Germany, ZF Friedrichshafen produces transmissions, axles and other parts for European and American vehicles. ZF Friedrichshafen has valued TRW’s assets at around $11–$12 billion. However, the specific purchase price has not been disclosed.
TRW is evaluating the proposal along with other strategic alternatives which will enhance shareholders value. However, the evaluation process is not restricted to any timeframe. In the meantime, the company will continue to operate under its existing business model. Notably, Goldman Sachs Group, Inc. (NYSE:GS-Free Report) will take up the role of a financial advisor for the company.
TRW reported a 19.9% increase in its first-quarter 2014 earnings to $1.81 per share from $1.51 (all excluding special items) a year ago. Also, earnings per share exceeded the Zacks Consensus Estimate of $1.65.
Revenues in the quarter grew 5% to $4.4 billion driven by strong demand for TRW’s innovative technologies, increased vehicle production volumes and a positive impact of currency translation, partly offset by some existing business exits in the North American brake component and assembly operations. Revenues beat the Zacks Consensus Estimate of $4.31 billion.
TRW is a leading manufacturer of advanced technology products and services for the automotive markets. Headquartered in Michigan, the company operates across 24 countries through its subsidiaries. These operations primarily involve design, manufacture and sale of active and passive safety-related products. TRW currently retains a Zacks Rank #2 (Buy).
Other well-performing automobile stocks worth considering include China Automotive Systems Inc. (Nasdaq:CAAS-Free Report) and Wabash National Corp. (NYSE:WNC-Free Report). Both the companies sport a Zacks Rank #1 (Strong Buy).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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