For Immediate Release
Chicago, IL – September 7, 2017 – Zacks Equity Research Disco Corp.(OTCMKTS: (DSCSY - Free Report) – Free Report)as the Bull of the Day, Brookdale Gibraltar Industries (Nasdaq: (ROCK - Free Report) – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onto Netflix (Nasdaq: (NFLX - Free Report) – Free Report) and T-Mobile (Nasdaq: (TMUS - Free Report) – Free Report).
Here is a synopsis of all three stocks:
Bull of the Day:
Disco Corp.(OTCMKTS: (DSCSY - Free Report) – Free Report) is a Zacks Rank #1 (Strong Buy) and it is the Bull of the Day today. Let's take a look at why this stock has the most coveted Zack Rank. We will also take a look at why this stock might not be for everyone as it is awfully illiquid.
Disco Corporation manufactures and sells precision cutting, grinding and polishing machines primarily in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws, as well as products for dicing before grinding process and package singulation. The company also manufactures and sells precision diamond abrasive tools; and offers processing services. DISCO Corporation is headquartered in Tokyo, Japan.
A quick look at the style scores tells me that this is a stock that I like. It has a growth style score of "A" and a value style score of "F." As the aggressive growth stock strategist, this is just what I like to see as it tells me that the value investors are not interested in this stock.
The primary control factor for the Zacks Rank is the movement in earnings estimates. When estimates move higher, the rank tends to improve. The estimates for DSCSY have been moving higher over the last 30 days.
Bear of the Day:
Gibraltar Industries (Nasdaq: (ROCK - Free Report) – Free Report) is a stock that I really like... so why would I profile it on a the Bear of the Day? I see the stock recently beat, so this is a good opportunity to explain why it is a Zacks Rank #5 (Strong Sell) and also look forward for future opportunities.
Before I get to the meat of this article, let's give the due and proper respect to Gibraltarfor having one of the best tickers in the market. I know there are a few other 'word' tickers, but ROCK is among my favorites.
Gibraltar Industries, Inc. is a leading manufacturer, processor, and distributor of metals and other engineered materials for the building products, vehicular, and other industrial markets.
After seeing a good earnings history, the next step is to look at the earnings estimate revisions. There were 2 negative revisions to this quarter, the next quarter, this year and next year as well. That is the major reason why the stock has fallen to a Zacks Rank #5 (Strong Sell).
Why Did Netflix (NFLX - Free Report) Pop on Wednesday?
After a sluggish start to the trading day, shares of Netflix (Nasdaq: NFLX – Free Report) moved about 2.2% higher in the early afternoon hours on Wednesday. The midday pop seems to be a result of the news that T-Mobile (Nasdaq: TMUS – Free Report) is including a free Netflix subscription in its new family plans.
According to a company press release, “T-Mobile One” family plans with two or more lines now include a complimentary Netflix membership. T-Mobile One customers will be able to activate their Netflix accounts online, in-store, or over the phone starting on September 12.
“The future of mobile entertainment is not about bolting a satellite dish to the side of your house or resuscitating faded 90s dotcoms. The future is mobile, over-the-top and unlimited,” said John Legere, president and CEO of T-Mobile,” said T-Mobile CEO John Legere.
For customers that already have Netflix accounts, T-Mobile has promised to cover the cost of the subscription—a deal that’s worth about $120 every year. The promotion is part of what T-Mobile calls its “Un-carrier” strategy, which is a company-wide effort to challenge mobile carrier conventions.
However, other carriers have similar packages with streaming platforms. For example, AT&T includes DirecTV Now streaming in some of its plans. Of course, AT&T owns DirecTV, so this partnership between two separate companies is somewhat unique.
“This is the right move at the right time — for all the right reasons,” said Netflix CEO Reed Hastings. “More and more fans are bingeing on mobile, so we’re bringing together Netflix’s award-winning TV shows and movies with T-Mobile’s award-winning, unlimited network.”
T-Mobile is only guaranteeing one Netflix account per family plan, and there’s certain to be plenty of overlap between existing T-Mobile One and Netflix members.
Nevertheless, the promotion is likely to give at least some lift to Netflix’s U.S. subscriber figures. Netflix said that it had 51.92 million total U.S. streaming subscribers at the end of the second quarter. At the time, the company was expecting to add about 750,000 accounts in the third quarter.
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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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