For Immediate Release
Chicago, IL – July 07, 2017 –Zacks Equity Research PetMed Express (NASDAQ: PETS – Free Report ) as the Bull of the Day, Boston Beer Company (NYSE: SAM – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Marvell Technology (NASDAQ: MRVL – Free Report ), Microchip Technology (NASDAQ: MCHP – Free Report ) and Cypress Semiconductor (NASDAQ: CY – Free Report ).
Here is a synopsis of all five stocks:
With the NASDAQ Composite breaking down over the last several days it feels weird to name a NASDAQ stock as my Bull of the Day. However, while the tech-heavy index has succumbed to selling pressure since early June, this stock has held its own. That sort of relative strength in the face of a depressed investment landscape is one of the many reasons this stock is at the top of my list.
PetMed Express (NASDAQ:PETS – Free Report ) operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and supplies for dogs and cats to retail customers. It provides non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, thyroid, diabetes, pain medications, antibiotics, and other specialty medications, as well as generic substitutes.
PetMed Express is a Zacks Rank #1 (Strong Buy) stock in an industry that’s currently ranked in the Top 16% of our Zacks Industry Rank. It also has a Growth Style Score of B. Part of the reason for the favorable Zacks Rank is the recent earnings estimate revisions analysts have made over the last 30 days. The bullishness of these revisions can be seen in the change of our Zacks Consensus Estimates. Just 60 days go, analysts were expecting 33 cents EPS for the current quarter and $1.10 for the current year. This number has jumped to 40 cents for the current quarter and $1.25 for the year as a direct result of positive earnings estimate revisions.
The beer business has seen its fair share of changes over the last few years. There have been two major themes across the business; consolidation and craft beer. An industry that used to be spread out across several rival brands has been shrunk to a handful of very large players. Even Miller and Budweiser are under the same roof.
Then there’s the upstart craft beer business. Smaller breweries started popping up all over the US creating a whole new menu of choices for consumers. Larger manufacturers had to adapt to new flavors or buy up the smaller craft brews to keep pace.
Lagging behind these sweeping changes is today’s Bear of the DayBoston Beer Company (NYSE: SAM – Free Report ). Don’t get me wrong, I love a cold Sam Adams, but when you see the numbers on the stock you may not want to crack your investment account open.
The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. Its flagship beer is Samuel Adams Boston Lager. The company sells approximately 60 beers under the Samuel Adams and the Sam Adams brands; 20 hard cider beverages under the Angry Orchard brand; 13 flavored malt beverages under the Twisted Tea brand; and 4 hard seltzer beverages under the Truly Spiked & Sparkling brand name, as well as approximately 40 beers under A&S Brewing trade name. It markets and sells its products to a network of approximately 350 wholesalers, who in turn sell to retailers, such as pubs, restaurants, grocery stores, convenience stores, package stores, stadiums, and other retail outlets in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America.
Rather than break down the technical chart like I typically do, the easiest way to tell the story of Boston Beer Company is to look at the Price and Consensus chart from Zacks. Here you can see the steady growth year-over-year that helped propel the stock to over $300 per share in early 2015. Then everything took a turn for the worse. Estimates started to come down, growth began to evaporate and the stock tumbled.
Additional content:
3 "Internet of Things" Stocks to Buy Now
One of the strongest corners of the market this year has been the semiconductors industry. Throughout the chip-making market, companies have successfully adapted to the changing needs of the consumer, including an increased demand for small, high-powered chips that enable “Internet of Things” (IoT) devices.
For those that don’t know, the Internet of Things is the growing world of interconnected household and industrial devices. Everyday products and machines can now be embedded with sensor technology to process data or interact with other electronic devices.
For example, consumer-level IoT products include things like Amazon’s (AMZN) Echo “smart speaker,” wearable motion and activity tracking products, and advanced in-car technology. On the commercial side of the IoT market, industrial manufacturers have begun implementing sensors into machines to track performance and efficiency.
(Also Read: How to Invest in the "Internet of Things" )
As demand for the microchips that power these IoT devices continues to grow, semiconductor manufacturers with a focus on IoT products will continue to benefit. With that said, we’ve found three already-strong stocks that are looking to benefit even more from further IoT growth.
1. Marvell Technology (NASDAQ:MRVL – Free Report )
Marvell Technology is a leading designer, developer and supplier of mixed-signal and digital signal processing integrated circuits. The company’s “EZ-Connect” platform is used by a variety of global customers in the home automation, wearables, automotive, and industrial industries. After Marvell surpassed the Zacks Consensus Estimate by 25% in its most recent quarter, estimate revisions began pouring in for the company’s current-quarter and full-year earnings. The current Zacks Consensus Estimate for Marvell’s full-year earnings calls for EPS growth of more than 118%. This has helped the stock gain a Zacks Rank #1 (Strong Buy).
2. Microchip Technology (NASDAQ:MCHP – Free Report )
Microchp Technology is a manufacturer of microcontroller, memory, and analog chips. The company is a leader in several IoT-related fields, including automotive and wireless connectivity. This is another Zacks Rank #1 (Strong Buy) stock, and our current consensus estimates are calling for EPS growth of 26% and revenue growth of 12% this fiscal year. Shares are up over 30% year-to-date, but this stock could break even higher given the right catalyst, and it might have just that. Indeed, last month, the company upped its sales and EPS guidance for 1Q18, sending shares higher.
3. Cypress Semiconductor (NASDAQ:CY – Free Report )
Cypress Semiconductor is a leading provider of high-performance digital and mixed-signal integrated circuits. Just last year, the company shelled out $550 million to acquire Broadcom’s Wireless Internet of Things business and now its “WICED” Platform is one of the largest IoT portfolios in the industry. Cypress is currently a Zacks Rank #1 (Strong Buy), which pairs very well with its “A” grades for Growth and Momentum in our Style Scores system.
Bottom Line
The Internet of Things is one of the most exciting emerging tech markets in the world. Home automation products are fun. In-car technology is cool.
And while these specific products are interesting, the real moneymakers in these situations are the companies that are building the tech that powers these products. The Internet of Things needs semiconductors to function, and as the IoT grows, so too will semiconductor companies.
The best way for investors to cash in on this growing trend is to identify semiconductor companies that are not only investing in the Internet of Things, but are also displaying solid fundamentals and impressive Zacks metrics.
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 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.
Strong Stocks that Should Be in the News
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PetMed Express, Inc. (PETS): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report
Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report
Microchip Technology Incorporated (NASDAQ:MCHP): Free Stock Analysis Report
Cypress Semiconductor Corporation (CY): Free Stock Analysis Report
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