Seattle Genetics, Yandex, Syngenta and Bunge highlighted as Zacks Bull and Bear of the Day

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Dec 19, 2014, 09:30 ET

CHICAGO, Dec. 19, 2014 /PRNewswire/ -- Zacks Equity Research highlights Seattle Genetics (Nasdaq:SGEN-Free Report) as the Bull of the Day and Yandex (Nasdaq:YNDX-Free Report)as the Bear of the Day. In addition, Zacks Equity Research provides analysis onSyngenta AG (NYSE:SYT-Free Report) and Bunge Ltd. (NYSE:BG-Free Report).

Here is a synopsis of all four stocks:

Bull of the Day:

Seattle Genetics (Nasdaq:SGEN-Free Report) is a $4 billion biotechnology company focused on developing and commercializing innovative antibody-based therapies for the treatment of cancer. They are the industry leader in antibody-drug conjugates (ADCs), a technology designed to harness the targeting ability of monoclonal antibodies to deliver cell-killing agents directly to cancer cells.

ADCs are intended to spare non-targeted cells and thus reduce many of the toxic effects of traditional chemotherapy, while potentially enhancing antitumor activity.

Seattle Genetics' first ADC product ADCETRIS (brentuximab vedotin) is commercially available for two indications in more than 45 countries, including the U.S., Canada, Japan and members of the European Union. The approval of ADCETRIS makes it the first in a new class of ADCs.

The company is also testing their two most advanced product candidates, SGN-15 and SGN-10, in patients with breast, colon, prostate or other cancers.

In the biotech world, young companies rely on larger pharmaceutical enterprises to assist with long R&D periods that require lots of funding before any FDA-approved and marketable drugs are generating net income.

Seattle Genetics is jointly developing ADCETRIS in collaboration with Takeda Pharmaceutical Company. Under the collaboration, Seattle Genetics has full commercialization rights to ADCETRIS in the United States and Canada. Takeda has exclusive rights to commercialize the product candidate in all other countries.

Bear of the Day

Yandex (Nasdaq:YNDX-Free Report) is the primary Internet search provider in Russia. Shares have fallen sharply this year with the entire Russian stock market under pressure.

But the biggest catalyst for Yandex pessimism has been the earnings outlook. In the spirit of a picture often telling the story best, below is the Zacks proprietary Price & Consensus chart, which plots annual estimate changes over time against the stock price.

As you can, analysts have become increasingly negative in their earnings outlook over the past year.

There was some bright news in November, but it was quickly discounted as inconsequential in the near-term. Here was a note from JPMorgan analysts last month...

"After almost 3 years Mozilla is changing its strategy in Russia and will now pre-set Yandex as default search on its Firefox browser, replacing Google. We view the development as long-term positive for Yandex, but note that the incremental impact on Yandex traffic share is likely to be small, given the success of Yandex's own browser and dominating positions of Chrome/Android on the Russian browser market."

Additional content:

Ag Stocks Improve on Oil Price Decline

At present, almost all major world economies are heading toward globalization and trade liberalization. Escalation in the domestic and national product levels in each country is driven by the respective industrial growth rate. Economic development of a country is directly related to its comprehensive energy supply.

Oil comprises nearly 40% of the global energy consumption, and is the primordial energy resource for almost all types of transportation fuels. Thus, normal functioning of the contemporary global economy depends on the availability of crude oil to a considerable extent. However, oil prices are subjected to several fluctuations on numerous uncertain external factors in the global economy.

Energy Intensive Agricultural Sector

Fiscal authorities of several countries are highly concerned about food price inflation. A research study conducted by The World Bank revealed that in 2011, worldwide food prices had increased by 10%. Rising oil prices, coming in the wake of higher demand and supply disruptions, were considered to be a major reason for food price escalation.

Higher oil prices increased the cost of agricultural product marketing and eventually raised the marked prices of food and other agricultural items. A dollar's worth of output from the manufacturing sector historically consumes significantly less energy than a dollar's worth of the agricultural sectors' yield.

Investment in Agricultural Stocks

After keeping a close watch on the current oil price trend and examining its impacts, investors can pick the correct agricultural stocks with minimal risk. This is largely due to the fact that oil price volatility significantly affects the global agricultural industry.

Oil prices have gone downhill since June this year due to an over-supply from non-OPEC countries and lower demand from some developed economies. Also, the 12-member OPEC has decided to keep its output target unchanged, leading to further fall in oil prices. A fall in oil prices is benefiting the energy-intensive agricultural sector. Agricultural companies (that use products derived from oil consumption as inputs), are expected to earn greater revenue and margins in the upcoming quarters.

Stocks to Buy

Based on the contemporary market scenario, we have picked two agricultural stocks that are expected to beat earnings in the upcoming quarters.

Syngenta AG (NYSE:SYT-Free Report)

The Basel, Switzerland-based company is involved in the manufacturing, marketing and research of seeds and pesticides, in order to enhance crop yields and food quality. The company generated sales worth $3.0 billion in the last reported quarter.

With no estimate revisions, the company currently carries a Zacks Rank #3 (Hold). A fall in current oil prices would lower the operating expenses of Syngenta and hence may improve its earnings in the upcoming quarters.

Bunge Ltd. (NYSE:BG-Free Report)

The company is engaged in the food and agricultural business. Conducting its trade through five segments, Bunge has a wide global network of branches with its headquarters in White Plains, NY. The company currently has a Zacks Rank #3 (Hold) and has decent long-term earnings growth expectations of 10.8%.

Moving Forward

Investors are expected to reap sufficient surplus from the above agricultural stocks in the near future. With an excess supply over demand, oil prices are expected to dip, reducing the operational expenses for numerous agricultural companies.

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