For Immediate Release
Chicago, IL – Nov 14, 2017 – Zacks Equity Research highlights Zagg Inc (ZAGG - Free Report) as the Bull of the Day and Acacia Communications (ACIA - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) and Disney (DIS - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Zagg Inc is a Zacks Rank #1 Strong Buy) and has an "A" for its growth style score. This helps the stock land on my radar, but to be honest, it has been on my screen for a long time now. About three months ago,I profiled ZAGG here and the stock is up about 103% since.
Previous Bull / Trade
In my previous Bull of the Day on ZAGG, i noted that the stock was in my investor service Stocks Under $10 as we bought it looking to capitalize on ever increasing iPhone sales. Seems the story that worked then has worked again, but only to a higher degree.
ZAGG Inc, makes mobile tech accessories for smartphones and tablets. The company operates through ZAGG and mophie segments. It offers screen protection products; battery cases and power management products for tablets, smartphones, MP3 players, cameras, and other electronic mobile devices; device specific keyboards and device agnostic keyboards; earbuds, headphones, Bluetooth speakers, and cables under the ZAGG, InvisibleShield, IFROGZ, and mophie brands. ZAGG Inc is headquartered in Midvale, Utah.
The company extended its beat streak to 3 in early November, as EPS topped the Zacks Consensus Estimate by 2 cents.
Included in the release was an increase of guidance, as the company now forecasts sales to be $500M to $520M, up from the previous guidance of $470M-$500M and comfortably higher than the $493M estimate at that time.
Estimates have moved higher since the earnings report, with the Zacks Consensus Estimate for 2017 moving from $0.85 to $0.99. The number for next year has also moved higher, going from $1.09 to $1.27.
The driver for these increases is clearly the strong launch of the new Apple iPhone.
Bear of the Day:
Acacia Communicationsrecently posted a beat of the Zacks Consensus Estimate and despite that bit of good news, the share price and earnings estimates have been falling.
On November 2, the company posted a huge beat on the bottom line with 31% positive earnings surprise. The topline saw a minimal beat, but it was still a beat.
The bad news is that the company guided the next quarter below the consensus and that has sent the estimates and share price lower. Investors like to see earnings growth, not earnings contraction.
Acacia Communications, Inc. designs, develops, manufactures and markets communication equipments. The Company offers coherent optical interconnect products for cloud infrastructure operators and content and communication service providers. It operates primarily in the Americas, Europe, the Middle East, Africa and the Asia Pacific region. Acacia Communications, Inc. is headquartered in Maynard, Massachusetts.
The company guided Wall Street for EPS of $0.19-0.36, excluding non-recurring items compared to the $0.47 Wall Street Consensus Estimate. Management expects Q4 revenues of $83M-$93M compared to the estimate which was at $113M at the time.
Amazon Bets Big on ‘Lord of the Rings’ Prequel Series
On Monday, e-commerce giant Amazon announced that it has acquired global television rights to The Lord of the Rings (LOTR), and has big plans to bring the beloved franchise set in Middle Earth to the small screen.
According to Deadline, Amazon apparently paid close to $250 million, but that does not include any production costs, which will likely be enormous if you consider what HBO has to shell out for its hit fantasy series, Game of Thrones. No financial details about the deal were officially disclosed.
Together with the Tolkien Estate and Trust, HarperCollins, and New Line Cinema, Amazon Studios is set to produce a LOTR television series based on new storylines and one that takes place before J.R.R. Tolkien’s book The Fellowship of the Ring. The company’s Amazon Prime streaming service has given the show a multi-season commitment, with the potential for spinoff series.
“The Lord of the Rings is a cultural phenomenon that has captured the imagination of generations of fans through literature and the big screen,” said Sharon Tal Yguado, Head of Scripted Series, Amazon Studios. “We are honored to be working with the Tolkien Estate and Trust, HarperCollins and New Line on this exciting collaboration for television and are thrilled to be taking The Lord of the Rings fans on a new epic journey in Middle Earth.”
Deadline also notes that Amazon, HBO, and streaming giant Netflix were all approached by the Tolkien estate about the new LOTR show.
This deal is also allowed Amazon to get in the television franchise game, and step up its competitive offerings. Even though Game of Thrones has begun filming its last season, HBO already has plans for multiple spin-off seasons of the world of Westeros. Netflix, too, has a very successful partnership with Disney’s Marvel franchise, with shows like Daredevil and Luke Cage huge hits for the platform.
A LOTR show could prove very fruitful for Amazon. The original trilogy grossed over $2.9 billion worldwide, and it truly was a global phenomenon. The final film, The Return of the King, eventually won 11 Oscars, sweeping all categories for which it was nominated; the first two con win six Oscars combined as well.
But all of this monetary and awards season potential carries a ton of risk, like all adaptations do. Amazon should be mindful of LOTR’s vehemently devoted fanbase, and the fact that Middle Earth has already been extensively explored on screen in these first three films and the Hobbit trilogy.
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Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: This Is Bigger than the iPhone!
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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.
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Strong Stocks that Should Be in the News
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