The Zacks Analyst Blog Highlights:Intel, Google, Apple, Amazon and PetMed Express
CHICAGO, July 2, 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 Intel Corporation (Nasdaq:INTC-Free Report), Google (Nasdaq:GOOGL-Free Report), Apple (Nasdaq:AAPL-Free Report) Amazon (Nasdaq:AMZN-Free Report) and PetMed Express, Inc. (Nasdaq:PETS-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Intel Upgraded to Strong Buy
Zacks Investment Research upgraded Intel Corporation (Nasdaq:INTC-Free Report) to a Zacks Rank #1 (Strong Buy) on Jul, 1. With a strong return of 29.3% over the past one year and positive estimate revisions over the last 60 days; Intel is an attractive investment opportunity.
Why the Upgrade?
Over the past 60 days, 19 estimates for the current quarter moved higher. None of the estimates moved down over the same time frame. The trend has been pretty favorable too, with estimates increasing 13.0% from 46 cents a share 60 days ago to 52 cents today.
Meanwhile, Intel's current year figures are also looking quite promising, with 22 estimates moving higher in the past two months, with no downward revisions. The consensus estimate also increased from $1.89 per share 60 days ago to $2.04 per share today, an increase of 7.9%.
The current optimism surrounding the stock can be attributed to stabilization in the PC market. Sales of PC processors to enterprises are growing, which forms the major revenue source for the chipmaker.
Intel is now taking steps to increase its foothold in mobile, wearables and the Internet of Things ("IoT"). It is trying to increase sales of its chips by entering the Smart TV market. In concurrence with these efforts, Intel got its chips into Google's (Nasdaq:GOOGL-Free Report) Android TV platform.
Android TV is likely to be a success, since the marketing effort is different. Google is focusing more on games instead of going for a head-on collision with TV content providers, so it may be able to grow into a solid competitor to Apple (Nasdaq:AAPL-Free Report) and Amazon (Nasdaq:AMZN-Free Report) TVs. The expansion of Google's Android TV will create a larger market for Intel's processors.
Intel's tablet plans are also very focused. On the one hand, it entered into an alliance with China's Rockchip to help it build a position in the low-end tablet segment. On the other, it got its high-end chips into Microsoft's flashy new Surface. Microsoft's recent exchange offer to woo Mac users would therefore help Intel sell its high-margin Core i3 – Core i7 processors.
Intel's strength in the data center and stabilization in the PC market are providing the cushion required for a very aggressive push to gain traction in mobile.
Intel also has good prospects in the IoT segment. In fact, the segment accounted for 4% of revenue in the first quarter of 2014 and was up 32.1% from last year.
Intel is the world's leading manufacturer of microprocessors for personal computers. The company generates strong cash flows and returns value to investors through regular share repurchases and dividends. Therefore Intel shares look like a smart investment right now.
PetMed Raised to Buy on Solid Growth Strategies
On Jul 1, 2014, Zacks Investment Research upgraded PetMed Express, Inc. (Nasdaq:PETS-Free Report) to a Zacks Rank #2 (Buy).
Why the Upgrade?
PetMed posted a mixed fourth-quarter fiscal 2014 with earnings beating and revenues missing the respective Zacks Consensus Estimate. Nonetheless, we are upbeat about the fact that PetMed is striving to expand its portfolio in a bid to drive its top line.
Although fourth-quarter EPS of 23 cents was in line with the year-ago figure, it exceeded the Zacks Consensus Estimate by a couple of cents. However, an extreme winter coupled with lower new order and reorder sales caused net sales to drop 4.9% year over year to $48.6 million. The top line also missed the Zacks Consensus Estimate by 6.5%.
Strategies to drive growth amid a challenging economic scenario include focus on advertising efficiency to improve new order sales and shift sales to higher margin items.
We note that, in the last reported quarter, as a favorable reaction to promotions, average order size increased to $77 in the quarter from $75 in the year-ago period. We are also encouraged to note that the company is working on issues like limited consumer spending and a change in product mix to lower-priced items, mainly generics. Alongside, PetMed is asking veterinarians to prescribe additional brands.
The company is also working on improving the effectiveness of its campaigns. It has been quite successful in pushing its sales via the Internet. Approximately 80% of PetMed's orders were generated on the website compared with 79% in the corresponding year-ago quarter.
Notably, the Zacks Consensus Estimate for the first quarter of 2014 has moved up 4.3% to 24 cents per share over the last 60 days.
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 INTC - FREE
Get the full Report on GOOGL - FREE
Get the full Report on AAPL - FREE
Get the full Report on AMZN - FREE
Get the full Report on PETS - 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
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.
Share this article