For Immediate Release
Chicago, IL – October 19, 2016 – Zacks Equity Research highlights definitely Best Buy (NYSE:(BBY - Analyst Report) – Free Report) as the Bull of the Day and Fiat Chrysler (NYSE:(FCAU - Snapshot Report) – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Intel Corp. (NASDAQ:(INTC - Analyst Report) – Free Report).
Here is a synopsis of all three stocks:
Bull of the Day:
For awhile there, today’s Bull of the Day was having a tough time keeping up with competition from unconventional online retailers. However through a nimble business plan and an increased online presence, this company has begun to turn things around and get back on the path to success.
I’m talking, of course, about Best Buy (NYSE:(BBY - Analyst Report) – Free Report) . A disastrous 2012 saw the electronics retailer in the dumps. Amazon was becoming bigger and bigger in the marketplace and Best Buy started to fade away. But rather than shrink away into the night, Best Buy management circled the wagons and got the retailer back on track. The same company that put Circuit City out of business has showed plenty of resilience.
My favorite chart to use to analyze stocks is our Price, Consensus and EPS Surprise Chart at Zacks. In one easy chart I can read price, volume, earnings beats and the evolution of our Zacks Consensus Estimate over time. You can clearly the growth in EPS year over year and the overall trend of earnings estimates over time. For Best Buy, the story has been earnings growth for the last couple of years. Further, analysts have been increasing their earnings estimates throughout the course of the year.
Bear of the Day :
Let’s face it, automakers have been rocking and rolling recently. With an aging auto fleet coming out of the Great Recession, finding auto deals was easy. That pent up demand finally starting hitting the lots and people all over the place started getting new cars. Heck, I personally know 4 people in my family that have recently purchased brand new autos this year.
But eventually all good things come to an end. It looks like auto sales are beginning to slow down a little and we’ve begun to get a little bit of bad news, including Ford shuttering some plants temporarily. Today’s Bear of the Day is another huge name in the auto business, Fiat Chrysler (NYSE:(FCAU - Snapshot Report) – Free Report) .
Fiat provides passenger cars, light trucks, and light commercial vehicles under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, and Ram brand names; and luxury vehicles under the Maserati brand, as well as after-sales services and parts under the Mopar brand.
Currently, FCAU is clocking in at a Zacks Rank #5 (Strong Sell). A big reason for the unfavorable Zacks Rank is two analysts dropping their earnings estimates for the current quarter, current year and next year over the last week. The bearish sentiment has dropped our Zacks Consensus Estimate from 40 cents to 34 cents for the current quarter, sank next quarter’s numbers from 53 cents to 46 cents, and taken the current year estimate from $1.58 to $1.45.
Intel Down 3.5% Despite Earnings Beat, IoT Revenue Up 19%
Intel Corp. (NASDAQ:(INTC - Analyst Report) – Free Report) just released its third quarter fiscal 2016 earnings results, posting non-GAAP earnings of 80 cents per share and revenue of $15.8 billion. Currently, INTC is a Zacks Rank #1 (Strong Buy), and is down 3.5% to $36.47 per share in after-hours trading shortly after its earnings report was released.
Beats earnings estimates . The company posted non-GAAP earnings of 80 cents per share, topping the Zacks Consensus Estimate of 73 cents per share. This number excludes 11 cents from non-recurring items.
Beat revenue estimates . The company saw revenue figures of $15.78 billion, surpassing our consensus estimate of $15.554 billion and gaining 9% year-over-year.
Reported Internet of Things Group revenue of $689 million, up 20% sequentially and up 19% year-over-year. Data Center Group revenue came in at $4.5 billion, up 10% year-over-year, while Client Computing Group revenue was $8.9 billion, up 5% year-over-year.
Intel posted non-GAAP operating income of $5.1 billion and net income of $3.9 billion.
“It was an outstanding quarter, and we set a number of new records across the business,” said Brian Krzanich, Intel CEO. “In addition to strong financials, we delivered exciting new technologies while continuing to align our people and products to our strategy. We’re executing well, and these results show Intel’s continuing transformation to a company that powers the cloud and billions of smart, connected devices."
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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.
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