The Zacks Analyst Blog Highlights: Tesla Motors, Micron Technology, Apple, SanDisk and Intel

News provided by

Jun 09, 2014, 09:30 ET

CHICAGO, June 9, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Tesla Motors, Inc. (Nasdaq:TSLA-Free Report), Micron Technology Inc. (Nasdaq:MU-Free Report), Apple (Nasdaq:AAPL-Free Report), SanDisk Corp. (Nasdaq:SNDK-Free Report) andIntel Corp. (Nasdaq:INTC-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Tesla Wins Over California Lawmakers

Two senators in California are trying to entice Tesla Motors, Inc. (Nasdaq:TSLA-Free Report) to construct its planned Gigafactory in the state by sponsoring the SB 1309 bill that offers incentives in terms of both financial benefits and faster regulatory approvals to the automaker. Tesla had initially excluded California from the list of states being considered for building the Gigafactory as the time required for the strict regulatory reviews in the state would delay the construction schedule. Therefore, the passing of the bill might tilt the decision in California's favor. Arizona, Nevada, New Mexico and Texas are the other states being considered for the Gigafactory.

Moreover, as Tesla is now planning to break ground for the Gigafactory at three sites instead of two, the probability of California being one of the chosen sites has increased. According to Bloomberg, the former Mather Air Force Base near Sacramento is one of the sites being evaluated by Tesla in California.

Building the Gigafactory in California will definitely be beneficial for Tesla as its main assembly plant is in Fremont, CA. Thus, the cost of transporting battery packs from the Gigafactory to the assembly plant will reduce drastically if it chooses California as the site. Moreover, the state will benefit as the factory will employ around 6,500 people.

While Tesla initially had plans to construct only one Gigafactory, the company has now decided to break ground in three sites to avoid any delay in construction. By the end of the year, the company will begin construction at any one of the three. Eventually the automaker might start construction on the other sites as well.

Meanwhile, in New Jersey, the Assembly's consumer affairs committee moved forward a bill that permits direct selling of electric cars by automakers provided they run maintenance facilities in the state. In March, new regulations approved by the state banned the direct sales of vehicles by any automaker and necessitated the use of middlemen. Tesla, which has two stores in the state, had filed an appeal against the regulation. If the new bill is approved, Tesla will not only be able to sell cars in the state, but might also increase the number of stores to four.

Tesla currently carries a Zacks Rank #4 (Sell).

Micron Technology Looks Promising

Micron Technology Inc. (Nasdaq:MU-Free Report) seems well set on the growth path, given its positive earnings surprise history and strong fundamentals. That's why the shares of this memory chipmaker soared 135.1% over the last one year and 34.1% year-to-date.

On an average, this Zacks Rank #1 (Strong Buy) stock's earnings have outperformed the Zacks Consensus Estimate by 35.76% over the last four quarters, making investors bullish on the stock. Strong revenue growth (120.4% in first-quarter 2014 and 97.6% in second-quarter 2014) also kept investors interested in the stock.

The underlying driver is of course the favorable outlook for the memory market that bodes well for the company's success.

The company is optimistic about supply/demand balance for DRAM and NAND memory chips in 2014, which should support prices. According to management, demand for DRAM and NAND is expected to increase in the mid 20% to 30% and high 30% to low 40% ranges, respectively, over the long term. We believe that this supply/demand scenario is a positive for the company.

Micron is expected to benefit from the strong demand for NAND flash-memory chips, used in smartphones and tablets. Driven by new tablet products and greater adoption of solid state drive (SSD), total demand in the NAND flash memory industry could surpass manufacturing capacity, leading to periodic shortage and higher pricing in the near term.

Furthermore, the Elpida acquisition has catapulted Micron to the 5^th spot from the 10^th in Gartner's 2013 list of Top 10 Semiconductor Vendors by Revenue, Worldwide. This is because the Elpida acquisition expanded Micron's wafer manufacturing capacity by approximately 45%. Moreover, the acquisition of Elpida has added Apple (Nasdaq:AAPL-Free Report) to its customer roster, which is a positive for future growth. Going forward, the acquisitions of Rexchip and Elpida will benefit Micron's share in the memory market.

Micron's innovations in memory technologies, spanning DRAM, NAND and NOR Flash memory remain the growth catalysts, going forward. These are being widely used in the latest mobile computing devices as well as in consumer, networking and embedded products. Moreover, we remain optimistic on Micron's SSD product launches that are in great demand for their advantages over the traditional hard drives.

While it may not be easy for Micron to take share from SanDisk Corp. (Nasdaq:SNDK-Free Report) — a key player in the NAND segment, support from Apple and Intel Corp. (Nasdaq:INTC-Free Report), its prime NAND customers, could ultimately turn the situation in Micron's favor.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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 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. 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 TSLA - FREE

Get the full Report on MU - FREE

Get the full Report on AAPL - FREE

Get the full Report on SNDK - FREE

Get the full Report on INTC - FREE

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

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

SOURCE Zacks Investment Research, Inc.