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Microchip Technology, United Continental and Zynerba Pharmaceuticals highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 29, 2017 – Zacks Equity ResearchMicrochip Technology (Nasdaq: (MCHP - Free Report) – Free Report) as the Bull of the Day, United Continental (NYSE: (UAL - Free Report) – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Zynerba Pharmaceuticals (Nasdaq: – Free Report).
With some uncertain trading in the summer, investors were starting to worry if the incredible growth in the semiconductor industry could keep up, and if stocks in this segment would continue moving in the right direction. After all, the space had been on fire and there was plenty of hype regarding a variety of new areas for semiconductor companies to expand into in the near future, but questions remained about how just how far in the future this boom might be.
With this backdrop, the latest earnings report from Micron was definitely in focus for investors. However, the company thoroughly crushed estimates and now expects earnings and revenues to be ahead of the previous estimate as well. Shares are up nicely now, and this optimism has trickled down in to a number of other players in the space.
But in the wake of this report, where should investors focus now in the semiconductor world? Let’s take a closer look at one of the more promising options available to investors in this corner of the market, and why it might be poised for continued strength as well.
What About Now?
Though not in the same Zacks Industry as Micron, Microchip Technology (Nasdaq: (MCHP - Free Report) – Free Report) is also a well-positioned semiconductor stock. This is especially true when you consider what an incredible premium investors are putting on growth in today’s environment, as MCHP has a Growth Grade of ‘A’ right now.
This strong grade is due to the industry-beating margins and projected sales growth, as well as a ROE above 34%. Add in projected EPS growth over 30% and a stunning 57% growth in current cash flow growth, and it is clear that this stock is a growth investor’s dream.
But it isn’t just cash flow growth that is impressive, as the company is also making great gains on the profit front too. Analysts are also taking note of these trends, and we have seen only analyst upgrades when it comes to earnings expectations over the past two months.
The analyst moves haven’t just been a penny or two either. We have seen a pretty sizable magnitude change in the consensus for a number of time periods. This includes a seven percent shift in the current quarter consensus in the past two months, a 7.7% move in the full year consensus in the same time frame, and a similar boost to the following year as well.
It has been a summer to forget for the airline industry.
Increased competition is finally catching up to the space, while the recent burst of terrible storms kept several major airline hubs out of commission too. One such airline that was especially impacted was United Continental (NYSE: UAL – Free Report), the parent company for United Airlines.
This airline has its second largest hub at Houston’s George Bush Intercontinental Airport , pushing nearly 400 flights a day out of this key gateway. Obviously, Hurricane Harvey took a big hit out of this operation with its massive rainfall, so that is likely to keep a lid on the potential for UAL shares in the near term.
But the weather isn’t the only thing that is an issue for airlines and UAL in particular. Recent events have also have had an impact on fuel prices, and the extremely low costs that airlines have been seeing on this front may finally be starting to break higher.
Gas Prices
The International Air Transport Association has their oil price projection at $54/barrel for Brent Crude, far higher than the $44.6/barrel that was seen in the previous year. Competitors Southwest Airlines and Delta have already bumped up their fuel cost expectations, while United has also done the same.
In fact, United moved its fuel price per gallon projection to $1.72-$1.77 from earlier projections of $1.56 - $1.61. That represents a roughly 10% increase in fuel costs, something that is likely to hit the bottom line for United in the immediate future.
Recent Estimates
Thanks to the storms and the recent uptick in gas price projections, analysts have been moving their estimates on UAL earnings lower. This represents a somewhat stark reversal from just a few weeks before when analysts were actually raising their estimates for UAL shares. However, it is clear if we look to the magnitude of the latest estimate changes, that things have decidedly swung into negative territory for United.
That is because, one month ago, the consensus estimate for United was at $3.00/share. Now, after the deluge of bad news and increased fuel prices, the estimate is at a paltry $1.87/share. That represents a nearly 38% cut in the past month, an obviously terrible trend.
Things don’t get much better when we look to the full year either though, as those estimates have also taken a nose dive. The consensus has slumped by about 18% in the last month for the one-year time period, and then 22% for the following year, suggesting that it isn’t looking like a bright future for the company either.
Additional content:
Zynerba Pharma Soars on Positive Cannabis-Based Drug Results
On Thursday, shares of clinical-stage specialty pharmaceutical company Zynerba Pharmaceuticals (Nasdaq: – Free Report) are soaring, up nearly 54% in afternoon trading after it announced positive results in a mid-stage study of its cannabis-derived gel treatment.
The drug, ZYN002, is a cannabidiol gel that seeks significantly reduce symptoms in patients who suffer from fragile x syndrome. Fragile x is an autism-spectrum disorder, and causes a range of developmental problems like learning disabilities and cognitive impairment. Symptoms include anxiety and hyperactive behavior such as fidgeting or impulsive actions.
According to the U.S. National Library of Medicine, fragile x affects males more severely than females, and 1 in 1,400 males and 1 in 1,800 females are affected; there is no approved treatment.
“The data from the FAB-C trial are very exciting and demonstrate that ZYN002 may have a profound effect on improving many of the most disabling symptoms of Fragile X, such as anxiety and difficult behaviors,” said Steven Siegel, MD, PhD Professor and Chair, Psychiatry and Behavior Sciences, Keck School of Medicine of USC.
Zynerba’s mid-stage study successfully met its primary endpoint, and the trial’s 20 patients, aged 6-17, experienced a 46% improvement in symptoms on the Anxiety, Depression, and Mood Scale (ADAMS) at week 12 compared to the baseline. The gel treatment also improved certain behaviors associated with fragile x, like temper tantrums, social avoidance, repetitive movements, and hyperactivity.
Looking ahead, Zynerba said it will test ZYN002 against a placebo in another mid-stage trial with more patients. The company expects to meet with the FDA during the first half of next year.
A #3 (Hold) on the Zacks Rank, ZYNE has lost over 65% in value year-to-date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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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Microchip Technology, United Continental and Zynerba Pharmaceuticals highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 29, 2017 – Zacks Equity Research Microchip Technology (Nasdaq: (MCHP - Free Report) – Free Report) as the Bull of the Day, United Continental (NYSE: (UAL - Free Report) – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Zynerba Pharmaceuticals (Nasdaq: – Free Report).
Here is a synopsis of all three stocks:
Bull of the Day:
With some uncertain trading in the summer, investors were starting to worry if the incredible growth in the semiconductor industry could keep up, and if stocks in this segment would continue moving in the right direction. After all, the space had been on fire and there was plenty of hype regarding a variety of new areas for semiconductor companies to expand into in the near future, but questions remained about how just how far in the future this boom might be.
With this backdrop, the latest earnings report from Micron was definitely in focus for investors. However, the company thoroughly crushed estimates and now expects earnings and revenues to be ahead of the previous estimate as well. Shares are up nicely now, and this optimism has trickled down in to a number of other players in the space.
But in the wake of this report, where should investors focus now in the semiconductor world? Let’s take a closer look at one of the more promising options available to investors in this corner of the market, and why it might be poised for continued strength as well.
What About Now?
Though not in the same Zacks Industry as Micron, Microchip Technology (Nasdaq: (MCHP - Free Report) – Free Report) is also a well-positioned semiconductor stock. This is especially true when you consider what an incredible premium investors are putting on growth in today’s environment, as MCHP has a Growth Grade of ‘A’ right now.
This strong grade is due to the industry-beating margins and projected sales growth, as well as a ROE above 34%. Add in projected EPS growth over 30% and a stunning 57% growth in current cash flow growth, and it is clear that this stock is a growth investor’s dream.
But it isn’t just cash flow growth that is impressive, as the company is also making great gains on the profit front too. Analysts are also taking note of these trends, and we have seen only analyst upgrades when it comes to earnings expectations over the past two months.
The analyst moves haven’t just been a penny or two either. We have seen a pretty sizable magnitude change in the consensus for a number of time periods. This includes a seven percent shift in the current quarter consensus in the past two months, a 7.7% move in the full year consensus in the same time frame, and a similar boost to the following year as well.
Bear of the Day:
It has been a summer to forget for the airline industry.
Increased competition is finally catching up to the space, while the recent burst of terrible storms kept several major airline hubs out of commission too. One such airline that was especially impacted was United Continental (NYSE: UAL – Free Report), the parent company for United Airlines.
This airline has its second largest hub at Houston’s George Bush Intercontinental Airport , pushing nearly 400 flights a day out of this key gateway. Obviously, Hurricane Harvey took a big hit out of this operation with its massive rainfall, so that is likely to keep a lid on the potential for UAL shares in the near term.
But the weather isn’t the only thing that is an issue for airlines and UAL in particular. Recent events have also have had an impact on fuel prices, and the extremely low costs that airlines have been seeing on this front may finally be starting to break higher.
Gas Prices
The International Air Transport Association has their oil price projection at $54/barrel for Brent Crude, far higher than the $44.6/barrel that was seen in the previous year. Competitors Southwest Airlines and Delta have already bumped up their fuel cost expectations, while United has also done the same.
In fact, United moved its fuel price per gallon projection to $1.72-$1.77 from earlier projections of $1.56 - $1.61. That represents a roughly 10% increase in fuel costs, something that is likely to hit the bottom line for United in the immediate future.
Recent Estimates
Thanks to the storms and the recent uptick in gas price projections, analysts have been moving their estimates on UAL earnings lower. This represents a somewhat stark reversal from just a few weeks before when analysts were actually raising their estimates for UAL shares. However, it is clear if we look to the magnitude of the latest estimate changes, that things have decidedly swung into negative territory for United.
That is because, one month ago, the consensus estimate for United was at $3.00/share. Now, after the deluge of bad news and increased fuel prices, the estimate is at a paltry $1.87/share. That represents a nearly 38% cut in the past month, an obviously terrible trend.
Things don’t get much better when we look to the full year either though, as those estimates have also taken a nose dive. The consensus has slumped by about 18% in the last month for the one-year time period, and then 22% for the following year, suggesting that it isn’t looking like a bright future for the company either.
Additional content:
Zynerba Pharma Soars on Positive Cannabis-Based Drug Results
On Thursday, shares of clinical-stage specialty pharmaceutical company Zynerba Pharmaceuticals (Nasdaq: – Free Report) are soaring, up nearly 54% in afternoon trading after it announced positive results in a mid-stage study of its cannabis-derived gel treatment.
The drug, ZYN002, is a cannabidiol gel that seeks significantly reduce symptoms in patients who suffer from fragile x syndrome. Fragile x is an autism-spectrum disorder, and causes a range of developmental problems like learning disabilities and cognitive impairment. Symptoms include anxiety and hyperactive behavior such as fidgeting or impulsive actions.
According to the U.S. National Library of Medicine, fragile x affects males more severely than females, and 1 in 1,400 males and 1 in 1,800 females are affected; there is no approved treatment.
“The data from the FAB-C trial are very exciting and demonstrate that ZYN002 may have a profound effect on improving many of the most disabling symptoms of Fragile X, such as anxiety and difficult behaviors,” said Steven Siegel, MD, PhD Professor and Chair, Psychiatry and Behavior Sciences, Keck School of Medicine of USC.
Zynerba’s mid-stage study successfully met its primary endpoint, and the trial’s 20 patients, aged 6-17, experienced a 46% improvement in symptoms on the Anxiety, Depression, and Mood Scale (ADAMS) at week 12 compared to the baseline. The gel treatment also improved certain behaviors associated with fragile x, like temper tantrums, social avoidance, repetitive movements, and hyperactivity.
Looking ahead, Zynerba said it will test ZYN002 against a placebo in another mid-stage trial with more patients. The company expects to meet with the FDA during the first half of next year.
A #3 (Hold) on the Zacks Rank, ZYNE has lost over 65% in value year-to-date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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.