Skyworks Solutions, Cimarex Energy, Tesla Motors and Toyota Motor highlighted as Zacks Bull and Bear of the Day
CHICAGO, Nov. 26, 2014 /PRNewswire/ -- Zacks Equity Research highlights Skyworks Solutions (Nasdaq:SWKS-Free Report) as the Bull of the Day and Cimarex Energy (NYSE:XEC-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onTesla Motors, Inc. (Nasdaq:TSLA-Free Report) and Toyota Motor Corp. (NYSE:TM-Free Report).
Here is a synopsis of all four stocks:
Looking for a great way to play the "Internet of Things" and the coming global tidal wave of mobile phone upgrades to 4G? Look no further than Skyworks Solutions (Nasdaq:SWKS-Free Report).
Skyworks is an innovator of high performance analog semiconductors with customers across automotive, broadband, wireless infrastructure, energy management, GPS, industrial, medical, military, wireless networking, smartphone and tablet applications. They are probably most recognized as the supplier of RF (radio frequency) chips in Apple iPhones and other handset and device makers.
When I heard CEO Dave Aldrich speak earlier this year about his company's products helping create the "Internet of Things" I became very interested in the company and its growth potential. The massive connectivity trend to link personal devices to cars, homes, computers, appliances, and networks is just beginning to take off and Skyworks intends to be at the center of it.
Today I'll talk about the core fundamentals of this $12.5 billion tech company and what made them become a Zacks #1 Rank this month. Then we'll cover the big institutional buying that is driving this stock to new highs.
On November 6, SWKS reported a strong September quarter (their Q4 for FY14) and guided the current quarter well above consensus.
They beat an already-positive preannounce from mid-October with non-GAAP EPS of $1.12 and revenues of $718 million, up 51% year-over-year and beating top line estimates by roughly $35 million.
And that revenue surprise not only took full year 2014 top line growth to 28%, but inspired analysts to now project nearly 30% growth for next year too.
Cimarex Energy (NYSE:XEC-Free Report) is an independent oil and gas exploration and production (E&P) company with operations in Oklahoma, Texas and New Mexico. The majority of their activity is currently in the Permian Basin and the Cana–Woodford shale play in western Oklahoma.
As with most E&Ps in the past two months, EPS estimates have come down sharply while the price of crude oil searches for a floor. But analysts have generally been late and slow to lower estimates.
And a second wave of downward revisions hit Cimarex last week, knocking XEC down into the Zacks #5 Rank cellar.
Additional content:
Tesla, BMW to Team Up on Batteries, Lightweight Parts?
Tesla Motors, Inc. (Nasdaq:TSLA-Free Report) is planning to collaborate with BMW on batteries and lightweight components, per media reports. The alliance will involve the usage of Tesla's battery technology and BMW's carbon fiber technology for future car bodies.
The CEO of Tesla is also thinking of collaborating with BMW on charging stations. Earlier this year, Tesla was in discussions with BMW about the utility of charging stations for different types of electric vehicles. Tesla also plans to set up a battery plant in Germany in the next 5–6 years.
However, these plans are at the initial stages of development. At present, there is only one vehicle battery maker in Germany but that too is planning to close.
Tesla considers BMW's carbon fiber reinforced parts to be relatively cost-efficient. BMW uses carbon fibers produced from its joint venture with materials supplier, SGL to make reinforced passenger cell parts for its i3 electric hatchback and i8 plug-in hybrid sports car.
Earlier, Tesla also collaborated with other automakers including Toyota Motor Corp. (NYSE:TM-Free Report) and Daimler AG. In mid-October, Daimler sold its 4.3% stake in Tesla. However, the company affirms that it will continue to collaborate with Tesla, which will supply electric drive units to the former for the Mercedes B-class models and the electric drive mini-car.
In Mid Oct 2014, Toyota also sold its 2.4% stake in Tesla. Tesla used to supply battery packs for Toyota's RAV4 compact SUV. However, that agreement between the automakers has expired. Moreover, Tesla's CEO Elon Musk believes that Lithium-ion batteries used by Tesla are more efficient that fuel cell batteries.
Currently, Tesla carries a Zacks Rank #5 (Strong Sell).
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