Ultra Clean, Rent-A-Center, Facebook, Qualcomm and Whole Foods Mhighlighted as Zacks Bull and Bear of the Day

Shutterstock photo

For Immediate Release

Chicago, IL - November 03, 2016 - Zacks Equity Research highlights Ultra Clean Holdings (NASDAQ: UCTT - Free Report ) as the Bull of the Day and Rent-A-Center Inc. (NASDAQ: RCII - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on F acebook (NASDAQ: FB - Free Report ), Qualcomm (NASDAQ: QCOM - Free Report ) and Whole Foods Market (NASDAQ: WFM - Free Report ) .

Here is a synopsis of all the five stocks:

Bull of the Day :

Investors tend to be weary of companies that experience the combined impacts of an abrupt departure by a key member of the management team, and a shift in the company's overall focus. But there are times when that is just what the company needed. This is the case of the Zacks Bull of the Day, Ultra Clean Holdings (NASDAQ: UCTT - Free Report ) who in July saw their CFO leave the company during a time when management began to refocus on growing their market share and new semicap opportunities.

This Zacks Rank #1 (Strong Buy) company is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean's customers are primarily original equipment manufacturers for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean is headquartered in Menlo Park, California.

Recent Earnings Data

Management announced Q3 earnings on October 26th where they easily beat both the Zacks consensus earnings and revenue estimates. Specifically, on a year over year basis, the company saw gains in Total revenues +19%, Semiconductor revenues +14.6%, Total revenues outside the U.S. +66.1%, Net income +52.9%, Gross margins +0.7%, and Net cash increased by $3.2 million.

Management's Take

According to Jim Scholhamer, President and CEO, "Strong momentum led to record revenues and significant improvement on the bottom line this quarter. As a result of our strategic focus on the semiconductor capital equipment market, we are expanding our capabilities to cost-effectively meet customers' dynamic needs. As the market continues its upward trajectory, our solid customer relationships and growing market position are enabling us to outpace the broader industry."

Bear of the Day :

In the modern world, having a system outage for a single day can wreak havoc on any company. But when you combine weeks of system issues with a double digit decline in same store sales, a company's top and bottom line are bound to be negatively impacted. These are some of the issues facing our Zacks Bear of the Day, Rent-A-Center Inc. (NASDAQ: RCII - Free Report ).

This Zacks Rank #5 (Strong Sell) company operates company owned rent-to-own stores which offer high-quality, durable goods such as consumer electronics, appliances, furniture and accessories to consumers under flexible rental purchase arrangements that allow the customer to obtain ownership of the merchandise at the conclusion of an agreed-upon rental period.

Recent Earnings Report

On October 26, RCII posted Q3 earnings where they beat the Zacks consensus earnings estimate but came up short against the Zacks consensus revenue estimate. On a year over year basis the company saw declines in Diluted earnings per share -76.6%, Total revenues -12.3%, Core U.S. revenues -16.3%, Same store sales -12.0%, and EBITDA fell by 370 basis points.

Management's Take

According to Robert D. Davis, CEO, " As previously announced, our third quarter operating results were negatively impacted by unexpected capacity-related system outages following the full implementation of our new store information management system within our Core U.S. stores. Consequently, I am terribly disappointed in the results for the quarter, both top and bottom line. Toward the end of the third quarter we had seen significant improvement in system availability and a reduction in the frequency of system outages. However, over the past two weeks on a couple of instances we have experienced system slowness and outages similar to but less impactful than what we saw earlier in the third quarter. Despite these recent challenges, over the past 6 weeks, past due percentages have been lower than they were a year ago ."

Additional content:

Facebook, Qualcomm, Whole Foods Beat Earnings Estimates

Long-awaited results from Facebook's (NASDAQ: FB - Free Report ) Q3 earnings report hit the tape after Wednesday's close, beating analysts' expectations on both revenues and profits. The social media giant brought in 88 cents per share (accounting for stock-based compensation expenses and other BNRI) on $7.01 billion in quarterly sales. These results topped the 76 cents per share and $6.92 billion in the Zacks consensus estimates.

All main metrics for Facebook were surpassed in the quarter, including mobile monthly active users (MMAU) hitting above 1 billion for the first time ever, at 1.09 billion. Daily active users (DAU) now amount to 1.18 billion worldwide. Somehow FB shares are trading down in the wake of this news; the stock is up more than 21% year to date. For more on FB's earnings results, click here.

Chip-making major Qualcomm (NASDAQ: QCOM - Free Report ) blasted a big fiscal Q4 earnings beat after the bell, reaching $1.28 per share on $6.18 billion in quarterly revenues. These numbers far and away outperformed the 98 cents per share and $5.82 billion, respectively. The upper-end of revenue guidance for fiscal Q1 2017 at $6.5 billion is higher than the $6.3 billion in the Zacks consensus.

This marks the fifth straight quarter of earnings beats for Qualcomm, with chip shipments (MSM) of $211 million and licensing of $1.9 billion surpassing analyst estimates. Shares of QCOM are only up about 1% in late trading following the news, but the stock is up roughly 40% over the past 6 months. For more on QCOM's earnings, click here.

Also, Whole Foods Market (NASDAQ: WFM - Free Report ) brought forth its fiscal Q4 results, topping earnings estimates by 4 cents to 28 cents per share on revenues of $3.5 billion, slightly below the $3.51 billion expected. This marks the third positive earnings surprise in the last four quarters for the upscale supermarket chain. Notably, the company announced the return of founder John Mackey.

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

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 the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

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.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to 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 UCTT - FREE

Get the full Report on RCII - FREE

Get the full Report on FB - FREE

Get the full Report on QCOM - FREE

Get the full Report on WFM - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://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



Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .

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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ULTRA CLEAN HLD (UCTT): Free Stock Analysis Report

RENT-A-CENTER (RCII): Free Stock Analysis Report

FACEBOOK INC-A (FB): Free Stock Analysis Report

QUALCOMM INC (QCOM): Free Stock Analysis Report

WHOLE FOODS MKT (WFM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: UCTT , RCII , FB , QCOM ,

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?