Quantcast

Outerwall, Silicon Labs, Apple, Sanmina and Boeing highlighted as Zacks Bull and Bear of the Day - Valley News Live - KVLY/KXJB - Fargo/Grand Forks

Outerwall, Silicon Labs, Apple, Sanmina and Boeing highlighted as Zacks Bull and Bear of the Day

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Zacks Investment Research, Inc.

CHICAGO, May 9, 2014 /PRNewswire/ -- Zacks Equity Research highlights Outerwall (Nasdaq:OUTR-Free Report) as the Bull of the Day and Silicon Labs (Nasdaq:SLAB-Free Report)  as the Bear of the Day. In addition, Zacks Equity Research provides analysis onApple (Nasdaq:AAPL-Free Report), Sanmina (Nasdaq:SANM-Free Report) and Boeing (NYSE:BA-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Here is a synopsis of all five stocks:

Bull of the Day:

Physically renting movies hasn't gone the way of the dodo bird just yet. In fact, Outerwall (Nasdaq:OUTR-Free Report), recently reported rising revenue and expanding profit margins at its Redbox segment, which helped to drive a big first quarter earnings beat. It also prompted management to revise its EPS guidance significantly higher for 2014.

Analysts also revised their estimates meaningfully higher, which sent Outerwall to a Zacks Rank #1 (Strong Buy) stock.

Despite strong earnings momentum and solid growth projections, shares of Outerwall trade at less than 10x forward earnings and sport a double-digit free cash flow yield.

You probably know Outerwall best by its two primary segments: Redbox and Coinstar. The Redbox segment consists of more than 44,000 self-service kiosks where consumers can rent or purchase movies and video games. Coinstar consists of 21,000 self-service coin-counting kiosks where consumers can convert their coins to cash or stored value products.

The company also has a 'New Ventures' business segment, which seeks to "identify, evaluate, build or acquire and develop innovative new self-service concepts in the automated retail space," according to the company.

Outerwall reported better-than-expected first quarter results on May 1. Adjusted EPS came in at $1.27, beating the Zacks Consensus Estimate of $0.92. It was a 13% increase over the same quarter last year.

Bear of the Day:

Earnings estimates have fallen sharply for Silicon Labs (Nasdaq:SLAB-Free Report) following the company's Q1 earnings report on April 29. The drop in consensus estimates was enough to place Silicon Labs in the bottom 5% of all companies that Zacks ranks according to earnings momentum. It is a Zacks Rank #5 (Strong Sell) stock.

Although shares of Silicon Labs have sold off following the latest earnings report, the valuation picture still does not look very attractive with the stock still trading above the industry median on multiples of both forward earnings and cash flow.

Silicon Labs develops analog-intensive, mixed-signal integrated circuits used in a wide range of applications such as set-top boxes, televisions, and cell phones. The company was founded in 1996 and has a market cap of $1.9 billion.

Silicon Labs reported its first quarter results on April 29. Adjusted earnings per share came in at 24 cents, missing the Zacks Consensus Estimate by 2 cents.

Revenue for the quarter was $145.7 million, which was actually better than the consensus of $144.0 million. But it was up just 0.2% year-over-year. The sluggish growth was mostly attributable to a 15% drop in revenues in the company's 'Access' segment, which was due to declines in the market for embedded modem ICs.

Gross profit declined from 60.1% to 59.8% of revenue as margin contraction in its Access and Broadcast products more than offset gains in its Broad-based products.

Additional content:

Zacks May Strategy – IT Strong!

Real GDP Growth Gets More Solid in 2014

According the SFO Fed, real GDP grew a solid +2.5% over the four quarters of 2013, despite being held back by less accommodative fiscal policy.

More recently, unusually severe winter weather in many parts of the country account for some but not all of the weakness in spending and employment.

Starting this spring, the SFO Fed anticipates a return to above-trend growth of around +3.0 to +3.5%. Improving financial conditions, increasing credit availability, accommodative monetary policy, and healthier labor and housing markets all support a faster pace of growth.

Overweight IT...

Apple (Nasdaq:AAPL-Free Report) is helping now, post-buyback.  IT earnings growth for Q1 has been poor at +0.8%, but +7.6% is seen for Q2. +5.4% is seen for FY2014 for earnings on +4.5% revenue growth. Zacks Rank #1 IT companies are worth a look.  

Zacks Sector/Industry/Company Telescope

May offers a fresh mix of leading sectors.  The clear leader is the IT sector, followed by Industrials, Financials, and Energy.  These sectors speak to an improved outlook inside and outside the USA for global GDP growth.

(1) IT is Very Attractive.  The leader, in a big upgrade, is the Semiconductor industry, which is now Very Attractive, along with the Electronics industries. Misc-Tech fell back to Very Unattractive.

Company to Look at: Sanmina (Nasdaq:SANM-Free Report)

(2) Industrials?  Attractive.  Stay with the Aerospace & Defense.  The Ukraine, air travel, Asia island contests?  That's all good news here.  Machinery, Metal Fabricating, Railroad & Trucking got upgraded to Attractive. Machinery-Electrical is the dog.

Company to Look at: Boeing (NYSE:BA-Free Report)

(3) Financials are Attractive.  The stock market driven leader is Investment Funds at Very Attractive.  Insurance remains Attractive.  

(4) Energy got to modestly Attractive. Oil Exploration & Productions is the new leader. Alternative Sources stay Attractive. Oil-Misc fell on hard times, with the rise in the oil risk premium. Coal got a surprise upgrade to Attractive.

(5) Some Utilities stay modestly Attractive. A big upgrade to Utilities-Electric Power means that GDP growth in the U.S. is accelerating and the peak summer air conditioning season is around the corner.  Utilities-Water Supply fell back to a Market Weight this month.

(6) Health Care is Market Weight.  Drugs went from Unattractive to Market.

(7) Consumer Staples is Market Weight.  Surprisingly, Tobacco is the leader here now.  Soaps & Cosmetics stayed a Very Unattractive industry.  Agri-Business got upgraded to Market.

(8) Consumer Discretionary got downgraded.  The sole upgrade was to Home Furnishing-Appliances. Leisure Services fell back to Market, as did Autos-Tires-Trucks.  Publishing and Non-Food Retail are the big dogs.

(9) Materials are Unattractive. Paper got an upgrade to Attractive. Chemicals went Unattractive. Metal-Non-Ferrous went down to Very Unattractive.  Steel went to Unattractive from Very Unattractive.  The goods economy is the U.S. is on, and the turn in China steel demand may be here.

(10) Telcos is a firm Unattractive sector.  This defensive is off in May.

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on OUTR - FREE

Get the full Report on SLAB - FREE

Get the full Report on AAPL - FREE

Get the full Report on SANM - FREE

Get the full Report on BA - FREE

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
Powered by 

WorldNowAll content © Copyright 2000 - 2014 WorldNow and Valley News Live. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.