For Immediate Release
Chicago, IL – June 22, 2018 – Zacks Equity Research highlights ChemoCentryx (CCXI - Free Report) as the Bull of the Day and 58.com (WUBA - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onSeagate Technology PLC (STX - Free Report) , Garmin Ltd. (GRMN - Free Report) and Texas Instruments, Inc. (TXN - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
When the Trump administration came to power, one of the cornerstones of his plan was to cut regulation. One industry which has benefited dramatically from the scaling back of this regulation has been the biopharmaceutical business. With fewer restrictions on experimental drugs, biotech is having its day in the sun. One biotech enjoying a very nice run up lately is today’s Bull of the Day, ChemoCentryx.
ChemoCentryx, Inc., a clinical-stage biopharmaceutical company, develops new medications for inflammatory and autoimmune diseases, and cancer in the United States. The company targets the chemokine and chemoattractant systems to discover, develop, and commercialize orally-administered therapies. Its lead drug candidate is Avacopan, an orally-administered complement inhibitor of the complement C5a receptor (C5aR), is in Phase III development for the treatment of anti-neutrophil cytoplasmic auto-antibody-associated vasculitis (AAV).
The reason for the favorable Zacks Rank lies in future earnings estimate numbers. Analysts have adjusted their estimates to the upside for the current year and next year. Current year consensus has gone from a $1.18 loss up to a $1 loss. Often times, biotech companies working on new drugs have to take losses while their products go through research and development. Seeing estimates increase should help ease investor fears in the meantime.
The stock has run up aggressively since trading down at $6 to start the year. A couple of very solid earnings reports in a row, along with earnings estimates moving to the upside have helped underpin a rally into the teens. Yesterday’s aggressive selling sank the stock, serving up a potential opportunity on the pullback.
Bear of the Day:
With threats of a trade war continuing to loom over the market you probably want to avoid going face-first into Chinese stocks right now. Eventually the selling could lead to a great opportunity, but if you are one of those contrarians, you may want to find stocks that have earnings estimates moving in a positive direction. Today’s Bear of the Day is a Chinese internet stock that’s seen its earnings estimates move to the downside. Perhaps something to avoid even if you’re looking to play a bounce.
I’m talking about 58.com. 58.com Inc. operates online classifieds and listing platforms that enable local merchants and consumers to connect, share information, and conduct business in China. It primarily operates online multi-content category-classified advertising platforms under the 58 and Ganji names; and Anjuke, an online real estate listing platform. The company's platform contains local information of approximately 500 cities or towns in various content categories, including jobs, real estate, used goods, automotive, and yellow pages. It offers membership services, such as merchant certification and listing benefits, as well as display of online storefronts; and online marketing services comprising listing services, such as real-time bidding and priority listing, as well as marketing services through collaboration with third party Internet companies.
Currently, the stock is a Zacks Rank #5 (Strong Sell). The reason for the unfavorable Zacks Rank is the string of recent earnings estimate revisions to the downside. Looking the current year numbers, the Zacks Consensus Estimate has dropped from $2.07 to $1.97. That’s enough to give it the unfavorable Zacks Rank.
3 Tech Stocks for Dividend Investors to Buy Now
Tech stocks have been unpredictable at times recently, but the sector has rebounded from volatility strongly, and there is no question that tech has been the leader of the market’s strong multiyear run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.
Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.
By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!
Check out three of these stocks to buy now:
1. Seagate Technology PLC
Seagate is a global leader in hard drive manufacturing. It offers a range of disk drive products for the enterprise, client computing, and client non-computing market applications. Seagate is currently sporting a Zacks Rank #1 (Strong Buy) and an “A” grade for Value in our Style Scores system. The firm is currently generating a staggering $6.78 in cash per share on the back of 32% cash flow growth. Seagate takes advantage of its strong cash position by offering investors a dividend yield of 4.3%, making it one of the most attractive income options in the entire technology sector.
2. Garmin Ltd.
Garmin is a designer of GPS navigation and wearable technology equipment. The stock is holding a Zacks Rank #2 (Buy) and presents a dividend yield of about 3.5%. Investors have to pay a slight premium for GRMN right now, but a valuation of 19.5x forward 12-month earnings and a PEG ratio of 2.3 are certainly not outrageous. Meanwhile, Garmin generates $3.42 in cash per share and sticks out from the rest of the technology group with its net margin of 18.6%, which dramatically outpaces its industry’s average of 1.7%. Garmin is also an efficient company, evidenced by its RoE of 15.7%.
3. Texas Instruments, Inc.
Although you might recognize the brand because of its calculators, Texas Instruments is actually one of the leading suppliers of advanced semiconductors in the world. TXN is currently sporting a Zacks Rank #1 (Strong Buy). It should be a solid year of growth for the firm, with current estimates calling for earnings to expand by 28% in 2018. The company is also witnessing cash flow growth of 19.5% right now. Texas Instruments is really a cash cow, bringing in a total of $5.34 in cash per share. Management uses its solid financial position to reward shareholders with a dividend yield of roughly 2.2% currently.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
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