Avago Technologies, Smith & Wesson, Apple, Stamps.com and Callidus Software highlighted as Zacks Bull and Bear of the Day
CHICAGO, Dec. 30, 2014 /PRNewswire/ -- Zacks Equity Research highlights Avago Technologies (Nasdaq:AVGO-Free Report) as the Bull of the Day and Smith & Wesson (Nasdaq:SWHC-Free Report)as the Bear of the Day. In addition, Zacks Equity Research provides analysis onApple Inc. (Nasdaq:AAPL-Free Report), Stamps.com Inc. (Nasdaq:STMP-Free Report) and Callidus Software Inc. (Nasdaq:CALD-Free Report).
Here is a synopsis of all five stocks:
In early December, Avago Technologies (Nasdaq:AVGO-Free Report) crushed the Zacks Consensus Earnings and Revenue Estimates mainly due to their wireless communications division, which saw 73% growth quarter over quarter. Further, growing demand for BAW filters in China and India helped boost growth as well.
Avago Technologies is a leading designer, developer, and global supplier of a broad range of analog, digital, mixed signal and optoelectronics components and subsystems with a focus in III-V compound semiconductor design and processing. The company serves four primary target markets, Wireless communications, Wired Infrastructure, Enterprise storage, and Industrial and Other.
The higher than expected wireless growth, 4G deployment and adoption of 4G smartphones in China and India, and high volume shipments and content gains due to Apple's IPhone 6/6+ have caused management to increase revenue guidance for Q1 2015. Management increased Q1 15 revenue guidance to $1.64 billion, up from the Zacks Consensus Estimate of $1.51 billion due to anticipated tailwinds throughout Q1 2015 from the sales of Apple's IPhone 6/6+.
Over the past several years, gun manufacturers have seen their sales boom due to several factors, but it appears as though the golden age of gun purchases is fading. In 2013, more than 21 million applications were put through the National Instant Criminal Background Check System, which was almost 8% higher than 2012, and marked the 11 consecutive year the number increased. But in 2014, gun manufacturers saw a sizable decline in overall gun sales, and background checks. This has caused a significant buildup in inventories, especially at competitors of Smith & Wesson.
Smith & Wesson (Nasdaq:SWHC-Free Report) is one of the world's leading producers of quality handguns, law enforcement products and firearm safety and security products. This 150 year old company also manufactures and markets Smith & Wesson handcuffs, and other specialized metal working products.
During the gun boom over the past two plus years, Smith & Wesson has performed very well, and has posted a four quarter average positive earnings surprise of 15.82%. But in the most recent quarter, management saw total revenues decline 21% year over year due to waning sales and difficult comps. Specifically, handgun sales dropped 15%, and long gun sales declined 50% year over year.
While sales have begun to slump, inventories have begun to grow. While the inventory situation is not as bad for Smith & Wesson as it is for their competitors, it will negatively impact Smith & Wesson nonetheless. This is due to the fact that the competition, who has a large inventory, has begun to increase promotional activity (sales) in order to reduce their inventory, which is slowing sales at Smith & Wesson.
Additional content:
Apple's iPhone 6 Mini Scheduled for 2015 Debut?
Apple Inc. (Nasdaq:AAPL-Free Report) has been reportedly planning to launch a mini version of the iPhone 6 in 2015. Rumors have been making the rounds ever since the company launched the large-screen versions of its flagship product – iPhone 6 and 6 Plus. However, latest updates suggest that the company is keen on launching a 4-inch version of iPhone 6 if it guarantees a minimum of 10 million units per year.
While iPhone 6 and 6 Plus sales are touching new highs, a section of iPhone users still prefer smaller iPhones. We believe that with more variety in iPhone 6 sizes, Apple would be able to target a vast user base of those willing to upgrade to the iPhone 6.
Further, with the prospective launch of the iPhone 6 mini, the company could offer a better budget option for those who have been avoiding switching to the latest iPhone 6 because of the hefty price tag. Although the price of the mini version has not been fixed, it is likely to be somewhere between the entry-level iPhones and the latest iPhone 6.
We believe that the launch will cash in on the market buzz created by strong sales of the new iPhones. Since the Sep 2014 release, the iPhones created record demand far exceeding that of the previous versions of iPhone. Apple intends to sell the new iPhones in approximately 115 countries in the near term, marking it the fastest roll-out in the history of the device.
In addition, the iPhone maker will launch the iWatch in early 2015, which is expected to be a major hit. The watch offers several features including Apple Pay and Siri support that distinguish it from other smart watches currently available. We believe that the nascent smartwatch market with a few well-established players presents a good opportunity for Apple.
Market research firm IDC foresees 2014 worldwide shipments of wearable computing devices to increase threefold from 19 million units in 2013 to 112 million units in 2018. Apple's loyal customer base is a huge competitive advantage. The company even hired executives from Tag Heuer, Burberry and Yves Saint Laurent to develop the sleek and fashionable look of the device. We expect Apple's iWatch to broaden its revenue base.
Apple currently sports a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other stocks in this technology sector worth considering include Stamps.com Inc. (Nasdaq:STMP-Free Report) and Callidus Software Inc. (Nasdaq:CALD-Free Report) with a Zacks Rank #1.
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.
About Zacks
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 AVGO - FREE
Get the full Report on SWHC - FREE
Get the full Report on AAPL - FREE
Get the full Report on STMP - FREE
Get the full Report on CALD - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/avago-technologies-smith--wesson-apple-stampscom-and-callidus-software-highlighted-as-zacks-bull-and-bear-of-the-day-300014493.html
SOURCE Zacks Investment Research, Inc.
Share this article