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One of the hottest areas of the market has been the drug stocks. Over the last month alone, there are five drug stocks in the S&P 500 that are up over 10%. With so many stocks on the move, you may feel like you’ve missed the boat. Today’s Bull of the Day is a stock in this industry which has seen a few earnings estimate revisions to the upside. This could help support a continued moved higher.
Ligand Pharma (Nasdaq: (LGND - Free Report) – Free Report)is a biopharmaceutical company, which focuses on developing and acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. Its commercial programs include Promacta, an oral medicine that increases the number of platelets in the blood; Kyprolis and Evomela, which are used to treat multiple myeloma; CorMatrix portfolio of vascular, cardiac, and pericardial tissue repair products; bazedoxifene, which is used for the treatment of postmenopausal osteoporosis; Carnexiv that is used as replacement therapy for oral carbamazepine formulations; Nexterone, a Captisol-enabled formulation of amiodarone; Noxafil-IV, a Captisol-enabled formulation of posaconazole for IV use; Exemptia for autoimmune diseases; and Vivitra for breast cancer.
The bullish undertone for this stock stems from analyst estimates for next quarter, the current year and next year. Just ninety days ago, analysts expected to see 83 cents EPS for next quarter, $2.08 for the current year, and $3.53 for next year. After a round of revisions these numbers have swelled to $1.09 for next quarter, $2.35 for the current year and $3.58 for next year. Looking out two years, the company is slated to earn $4.37. This puts the mean growth rate estimate from analysts at 27.5%.
Today’s Bear of the Day has been a punching bag of a stock and the butt of a lot of jokes. After a huge scandal involving E Coli in their food, this company has struggled to regain the momentum it once had. I’m sure by now you already know what I’m talking about. That’s right, one of my favorite places for a quick bite and the Godfather of Fast Casual, Chipotle.
Chipotle Mexican Grill (NYSE: (CMG - Free Report) – Free Report)operates Chipotle Mexican Grill restaurants. The Company's Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2016, the Company operated 2,198 Chipotle restaurants throughout the United States, as well as 29 international Chipotle restaurants, and it also had 23 restaurants in operation in other non-Chipotle concepts.
The stock is a Zacks Rank #5 (Strong Sell) because of several earnings estimate revisions to the downside. Over the last sixty days, twelve analysts have dropped their estimates for the current quarter while fourteen have cut their numbers for next year. The bearish sentiment has dropped the Zacks Consensus Estimate for the current quarter from $2.37 to $1.81 while next year’s number has plummeted from $11.91 to $10.51.
Additional content:
3 Strong Buy Stocks with Great PE Ratios
Despite the advent of robo-traders and algorithmic investing, many investors are still interested in targeting stocks that have solid traditional valuation metrics. Of these, companies with better-than-average P/E ratios are often targeted as potentially undervalued investment options.
The Price to Earnings ratio is calculated by dividing a company’s share price by its full-year earnings per share figure. It is the most commonly used valuation metric related to profits and is generally viewed as an effective method for contextualizing a company’s current earnings performance.
While the P/E ratio is just one piece of the larger picture for value investors, it will almost always come up in any conversation about finding an undervalued stock. The average P/E ratio in the S&P 500 is about 16, so value investors will typically target stocks with a lower figure than that—although this varies by industry.
With this said, value investors can also benefit from pairing the P/E ratio and the Zacks Rank. By targeting stocks with better-than-average P/Es and strong Zacks Ranks, one creates an effective strategy for finding undervalued stocks that are poised to outperform the market over the next one to three months.
Today, we’ve found three Zacks Rank #1 (Strong Buy) stocks with impressive P/E ratios. Check them out:
Arcelormittal is the world’s largest steel producer. The company is currently sporting a P/E ratio of 7.79, which is better than its “Steel – Producers” industry average of 13.46. The stock also has an “A” grade for Value and better-than-industry-average P/S and P/B ratios. On top of this, MT has gained more than 37% over the past year, making it one of the better performing stocks in the “Basic Materials” sector. Based on our current Zacks Consensus Estimates, Arcelormittal is expected to post EPS growth of 128% and sales growth of 17% this year.
Ichor is a leading provider of fluid delivery subsystems for the semiconductor manufacturing industry. With a P/E ratio of just 10.40, the company bests the “Electronics – Semiconductors” industry average of 22.51. Overall, the stock has a “B” grade for Value. In addition, ICHR is sporting an “A” grade for Growth, thanks in part to its projected EPS growth of 80%, as well as its projected sales growth of 59%. And with shares up over 128% year-to-date, Ichor has been one of 2017’s strongest stocks in the red-hot semiconductors space.
Semiconductor memory giant Micron Technology has emerged as one of Wall Street’s most popular growth stocks over the past two years, but the stock is also an interesting value pick right now. The company is currently sporting a P/E ratio of 5.99, which is better than the “Computer and Technology” sector average of 23.71. Overall, MU has an “A” grade for Value and a weighted-average VGM grade of “A.” Based on our current Zacks Consensus Estimates, Micron is expected to post EPS growth of over 7,000% this fiscal year and a further 37% next fiscal year.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away. Download the new report now>>
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 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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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.
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 https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Ligand Pharma, Chipotle Mexican Grill, Arcelormittal, Ichor Holdings and Micron Technology highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 27, 2017 – Zacks Equity Research Ligand Pharma (Nasdaq: (LGND - Free Report) – Free Report) as the Bull of the Day, Chipotle Mexican Grill (NYSE: (CMG - Free Report) – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Arcelormittal (NYSE: (MT - Free Report) – Free Report), Ichor Holdings (Nasdaq: (ICHR - Free Report) – Free Report)and Micron Technology (Nasdaq: (MU - Free Report) – Free Report).
Here is a synopsis of all four stocks:
Bull of the Day:
One of the hottest areas of the market has been the drug stocks. Over the last month alone, there are five drug stocks in the S&P 500 that are up over 10%. With so many stocks on the move, you may feel like you’ve missed the boat. Today’s Bull of the Day is a stock in this industry which has seen a few earnings estimate revisions to the upside. This could help support a continued moved higher.
Ligand Pharma (Nasdaq: (LGND - Free Report) – Free Report)is a biopharmaceutical company, which focuses on developing and acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. Its commercial programs include Promacta, an oral medicine that increases the number of platelets in the blood; Kyprolis and Evomela, which are used to treat multiple myeloma; CorMatrix portfolio of vascular, cardiac, and pericardial tissue repair products; bazedoxifene, which is used for the treatment of postmenopausal osteoporosis; Carnexiv that is used as replacement therapy for oral carbamazepine formulations; Nexterone, a Captisol-enabled formulation of amiodarone; Noxafil-IV, a Captisol-enabled formulation of posaconazole for IV use; Exemptia for autoimmune diseases; and Vivitra for breast cancer.
The bullish undertone for this stock stems from analyst estimates for next quarter, the current year and next year. Just ninety days ago, analysts expected to see 83 cents EPS for next quarter, $2.08 for the current year, and $3.53 for next year. After a round of revisions these numbers have swelled to $1.09 for next quarter, $2.35 for the current year and $3.58 for next year. Looking out two years, the company is slated to earn $4.37. This puts the mean growth rate estimate from analysts at 27.5%.
Bear of the Day:
Today’s Bear of the Day has been a punching bag of a stock and the butt of a lot of jokes. After a huge scandal involving E Coli in their food, this company has struggled to regain the momentum it once had. I’m sure by now you already know what I’m talking about. That’s right, one of my favorite places for a quick bite and the Godfather of Fast Casual, Chipotle.
Chipotle Mexican Grill (NYSE: (CMG - Free Report) – Free Report)operates Chipotle Mexican Grill restaurants. The Company's Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2016, the Company operated 2,198 Chipotle restaurants throughout the United States, as well as 29 international Chipotle restaurants, and it also had 23 restaurants in operation in other non-Chipotle concepts.
The stock is a Zacks Rank #5 (Strong Sell) because of several earnings estimate revisions to the downside. Over the last sixty days, twelve analysts have dropped their estimates for the current quarter while fourteen have cut their numbers for next year. The bearish sentiment has dropped the Zacks Consensus Estimate for the current quarter from $2.37 to $1.81 while next year’s number has plummeted from $11.91 to $10.51.
Additional content:
3 Strong Buy Stocks with Great PE Ratios
Despite the advent of robo-traders and algorithmic investing, many investors are still interested in targeting stocks that have solid traditional valuation metrics. Of these, companies with better-than-average P/E ratios are often targeted as potentially undervalued investment options.
The Price to Earnings ratio is calculated by dividing a company’s share price by its full-year earnings per share figure. It is the most commonly used valuation metric related to profits and is generally viewed as an effective method for contextualizing a company’s current earnings performance.
While the P/E ratio is just one piece of the larger picture for value investors, it will almost always come up in any conversation about finding an undervalued stock. The average P/E ratio in the S&P 500 is about 16, so value investors will typically target stocks with a lower figure than that—although this varies by industry.
With this said, value investors can also benefit from pairing the P/E ratio and the Zacks Rank. By targeting stocks with better-than-average P/Es and strong Zacks Ranks, one creates an effective strategy for finding undervalued stocks that are poised to outperform the market over the next one to three months.
Today, we’ve found three Zacks Rank #1 (Strong Buy) stocks with impressive P/E ratios. Check them out:
1. Arcelormittal (NYSE: MT – Free Report)
Arcelormittal is the world’s largest steel producer. The company is currently sporting a P/E ratio of 7.79, which is better than its “Steel – Producers” industry average of 13.46. The stock also has an “A” grade for Value and better-than-industry-average P/S and P/B ratios. On top of this, MT has gained more than 37% over the past year, making it one of the better performing stocks in the “Basic Materials” sector. Based on our current Zacks Consensus Estimates, Arcelormittal is expected to post EPS growth of 128% and sales growth of 17% this year.
2. Ichor Holdings (Nasdaq: ICHR – Free Report)
Ichor is a leading provider of fluid delivery subsystems for the semiconductor manufacturing industry. With a P/E ratio of just 10.40, the company bests the “Electronics – Semiconductors” industry average of 22.51. Overall, the stock has a “B” grade for Value. In addition, ICHR is sporting an “A” grade for Growth, thanks in part to its projected EPS growth of 80%, as well as its projected sales growth of 59%. And with shares up over 128% year-to-date, Ichor has been one of 2017’s strongest stocks in the red-hot semiconductors space.
3. Micron Technology (Nasdaq: MU – Free Report)
Semiconductor memory giant Micron Technology has emerged as one of Wall Street’s most popular growth stocks over the past two years, but the stock is also an interesting value pick right now. The company is currently sporting a P/E ratio of 5.99, which is better than the “Computer and Technology” sector average of 23.71. Overall, MU has an “A” grade for Value and a weighted-average VGM grade of “A.” Based on our current Zacks Consensus Estimates, Micron is expected to post EPS growth of over 7,000% this fiscal year and a further 37% next fiscal year.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away. Download the new report now>>
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 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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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 https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.