For Immediate Release
Chicago, IL – October 10, 2016 – Zacks Equity Research highlights Micron (NASDAQ:(MU - Analyst Report) - Free Report) as the Bull of the Day and Fogo de Chao (NASDAQ:(FOGO - Snapshot Report) - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Verizon (NYSE:(VZ - Analyst Report) -Free Report) andYahoo’s (NASDAQ:(YHOO - Analyst Report) -Free Report) .
Here is a synopsis of all the four stocks:
Bull of the Day :
While the market has been chopping around near the highs, the tech-heavy NASDAQ has remained resilient. A big reason why is semiconductor stocks have been hot. With so much changing in the digital world around us, there has been huge demand for chips. One company that’s benefiting greatly from increased demand across the board is today’s Bull of the Day Micron (NASDAQ:(MU - Analyst Report) - Free Report).
Micron is a global leader in the semiconductor industry. The company holds over 20,000 patents and employs over 30,000 people in more than 20 countries across the globe. The company offers the industry’s broadest portfolio of silicon-to-semiconductor solutions. Their technology powers leading-edge computer, consumer, enterprise server and storage, networking, embedded, automotive, industrial and mobile products. They are the only US-based DRAM manufacturer.
The company is coming off a solid earnings beat where EPS came in at a 5 cent loss versus expectations for a 10 cent loss. The encouraging report was enough for several analysts to come out and jack up their earnings estimates for the current quarter, current year and next year. Five analysts have increased their numbers for the current quarter, pushing up our Zacks Consensus Estimate from 1 cent sixty days ago to 17 cents today. If you look at the current year numbers, the move is even more staggering. Eight analysts have increased their numbers, brining the Zacks Consensus Estimate from 52 cents to $1.08.
All of this bullish analyst behavior has helped push this stock to a Zacks Rank #1 (Strong Buy). You can see how well the stock tracks with EPS by checking out our Price, Consensus, and EPS Surprise chart on Zacks.com. The stock peaked in 2014 just before estimates started to take a turn for the worse. Since the beginning of the year the company has really turned things around, setting the stock off on a fierce rally from under $10 to over $17 today.
Bear of the Day:
There’s been a major shift in the spending habits of Americans. Whereas a generation ago Americans were out buying cars and other goods, there’s been a shift towards spending on experiences. A higher percentage of expenditures are going towards vacations and nights out at restaurants. As a result, we saw some breathtaking rallies in restaurant stocks last year. Some of these stocks have gone out to fizzle out. I’m afraid that may be the case with today’sBear of the Day Fogo de Chao (NASDAQ:(FOGO - Snapshot Report) - Free Report).
For those of you who are unfamiliar with the company, Fogo De Chao, Inc. owns and operates Brazilian steakhouses. It offers beef, lamb, chicken, pork and seafood items as well as liquor, beer and wine. The company operates primarily in the United States, Puerto Rico and Brazil. Fogo De Chao, Inc. is headquartered in Dallas, Texas.
The great part about these restaurants is they are all-you-can eat. You get a little chip at your table that you flip from green to red. Green means you’re ready for more food, red means you’re going to take a pass. When it comes to the stock, you may want to flip that chip over to red right now.
FOGO is a Zacks Rank #5 (Strong Sell) right now because of some very bearish analyst behavior. Over the last 60 days, four analysts have dropped their earnings estimates for the current quarter, next quarter, current year, and next year. The bearish attitude is most evident in next year’s numbers. The Zacks Consensus Estimate has dropped from $1.11 to 96 cents. This quarter, analysts are looking for 15 cents EPS out of the coming, following up on last quarter’s 17 cents.
Verizon Looking to Cut $1 Billion Off Yahoo Bid
On Friday, it was reported that telecommunications giant Verizon (NYSE:(VZ - Analyst Report) - Free Report) is looking to cut $1 billion off its $4.8 billion offer for Yahoo’s (NASDAQ:(YHOO - Analyst Report) - Free Report) core business. The New York Post originally reported the story.
This is most likely an after-effect of bad news for the web stalwart over the past few weeks. Yahoo recently revealed that in 2014, it had been hacked, and 500 million accounts—including usernames and passwords—were stolen.
And earlier this week, reports surfaced that claimed Yahoo scanned users’ incoming emails for terrorist signatures for roughly a year, on classified orders from a secret Foreign Intelligence Surveillance Court.
According to unnamed sources, “The discount is being pushed because [Verizon] feels Yahoo’s value has been diminished,” writes the Post. However, Yahoo’s team is pushing for the deal to close sooner rather than later, as well as fighting efforts to negotiate the deal price down in any way.
As a result, YHOO stock is sliding, down just over 1% in midday trading. VZ stock is also down about 0.50% today to $50.02 per share.
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.
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 MU - FREE
Get the full Report on FOGO - FREE
Get the full Report on VZ - FREE
Get the full Report on YHOO - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://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.
Zacks Investment Research
800-767-3771 ext. 9339
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/performance for information about the performance numbers displayed in this press release.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »