Back to top

Press Releases

Cree, Intuitive Surgical, Alexion Pharmaceuticals, Roche and Onyx Pharmaceuticals highlighted as Zacks Bull and Bear of the Day

CREE ISRG ALXN RHHBY

 ZacksTrade Now

For Immediate Release

Chicago, IL – July 16, 2013 – Zacks Equity Research highlights Cree ((CREE - Snapshot Report)-Free Report) as the Bull of the Day and Intuitive Surgical ((ISRG - Analyst Report)-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Alexion Pharmaceuticals, Inc. (ALXN - Analyst Report)-Free Report), Roche (RHHBY - Analyst Report)-Free Report) and Onyx Pharmaceuticals, Inc. -Free Report).

Here is a synopsis of all five stocks:

Bull of the Day:

Now that we are in the heart of earnings season, many investors are zeroing in on company reports to drive the market. While investors seem to be pretty bullish on financials for this quarter, one segment that may also provide some earnings growth is technology.

However, not just any tech company will do, as you will need to drill down into a few key segments for strong earnings growth. In particular, the semiconductor segment could be an interesting choice, thanks to the high Zacks Industry Ranks for this space, and the surging stock prices of many companies in this corner of the tech world. A number of semiconductor firms fit this bill as solid investments during this time frame, but one stands out for its promise this earnings season; Cree ((CREE - Snapshot Report)-Free Report).

Cree is a North Carolina-based company that focuses on LED products that are used in a number of applications including game displays, automobiles, signage, among others. Beyond their LED division, the company also makes power conversion products, Radio Frequency-based items, and semiconductor materials as well.

The firm is becoming increasingly well-known as demand increases for energy efficient applications across the board. Plus, it doesn’t hurt that the firm’s stock has risen by almost 200% in the past 52 weeks alone. While this is obviously an already amazing level of stock price growth, there is plenty of reason to believe that this trend can continue, especially if you look to earnings estimates for the company.

Bear of the Day:

Despite concerns over sweeping healthcare law changes, the medical sector has actually been a solid performer so far this year. In fact, the main ETF for the space, the Health Care Select Sector SPDR has easily outperformed the S&P 500 in the first half of 2013, trouncing the broad market by over 700 basis points.

However, some corners of the market could be facing troubles—especially in the medical device and equipment space—as concerns over healthcare spending are starting to take their toll on a number of companies in the space, as many are forgoing new purchases of equipment, or are buying less. One such company that has been the poster child of this trend and has seen its stock price suffer as a result is certainly Intuitive Surgical ((ISRG - Analyst Report)-Free Report).

ISRG is probably best known for its da Vinci Surgical System which helps surgeons to perform operations with increased precision and control. The basis of the system uses robotics, while there are also HD 3D vision systems, and proprietary instrument technologies as well.

Sales of this innovative device rose pretty much across the globe, though they struggled in the American market, according the preliminary Q2 earnings. Their key product saw only 90 sales in the U.S. market, compared to 124 a year ago, highlighting a very sluggish sales market (also read Medical Device ETFs Slump on Intuitive Surgical Crash).

This was especially troubling because the company pinned the lower sales on the difficult environment in the U.S., and the lack of hospital dollars for new technologies. This bearish outlook is driving the stock sharply lower, with prices for ISRG collapsing by about 14% in the past month alone.

And with the poor outlook from company management, many analysts seemed to have no choice but to slash their expectations for the company in the near term. In the past week, eight estimates have been cut for the current and next quarters, as well as the current and next year periods as well.

Additional content:

Alexion on Roche’s Radar?

According to Bloomberg News, Alexion Pharmaceuticals, Inc. (ALXN - Analyst Report)-Free Report) is being eyed by Roche (RHHBY - Analyst Report)-Free Report). People familiar with the situation, who declined to be identified, commented that Roche is seeking funds to finance the deal. Alexion Pharma, with a market cap of around $20 billion, surged more than 12% in Friday trading on the Nasdaq following rumors of the potential sale.

However, according to Reuters, Alexion Pharma's expensive valuation could prevent the transaction from materializing. Based on 2013 earnings estimates, Alexion is trading at 42.9x compared to the S&P average of 15.6x.

Roche is aiming to diversify its product portfolio through this potential takeover. The Swiss drugmaker boasts a strong oncology portfolio. The acquisition of Alexion Pharma, if it materializes, would give Roche access to Alexion Pharma’s sole marketed drug Soliris.

Soliris is available for the treatment of paroxysmal nocturnal hemoglobinuria (PNH), a rare genetic disorder. In Sep 2011, the US Food and Drug Administration (FDA) cleared Soliris for treating children and adults suffering from atypical hemolytic uremic syndrome, an ultra-rare genetic disorder.

In Nov 2011, a similar approval for the drug was granted in the EU. Soliris is being studied for additional indications. The drug recorded sales of $1.13 billion in 2012, up 45%.

Strong Soliris sales for the PNH indication have helped the company achieve profitability since the second quarter of 2008. Sales of the drug have been boosted further by its label expansion into the aHUS indication.

Apart from rumors regarding Alexion Pharma’s potential takeover, Onyx Pharmaceuticals, Inc. -Free Report) is another stock in the biopharma space which is in the news as an acquisition target.

Alexion Pharma currently carries a Zacks Rank #3 (Hold).

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 CREE - FREE

Get the full Report on ISRG - FREE

Get the full Report on ALXN - FREE

Get the full Report on RHHBY - FREE

Get the full Report on ONXX - 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.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%