Markets

Citrix Systems, Nu Skin Enterprises, Baidu, Amazon.com and JA Solar Holdings highlighted as Zacks Bull and Bear of the Day

Headlines that say Stocks, Finance, Markets, Business and World.
Credit: Shutterstock photo

Chicago, IL - December 11, 2015- Zacks Equity Research highlights Citrix Systems ( CTXS ) as the Bull of the Day and Nu Skin Enterprises ( NUS ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baidu Inc. ( BIDU ), Amazon.com ( AMZN ) and JA Solar Holdings Co., Ltd. ( JASO ).

Here is a synopsis of all five stocks:

Bull of the Day :

Citrix Systems ( CTXS ) is a leading provider of virtualization, networking and cloud computing solutions to more than 400,000 organizations worldwide. Its products include XenApp, which runs the business logic of applications on a central server, and XenServer, an enterprise-class platform for managing server virtualization in the datacenter as a pool of computing and storage resources.

Their Citrix Workspace Cloud delivers secure access to apps, desktops, data and services from any device, over any network and cloud.

And Citrix is also well known as the provider of GoTo Meeting services and applications. In a November announcement about the company's strategic restructuring, management revealed that they plan to spin-off the GoTo suite.

Citrix Updates on Operations Review

Here were the headline updates from November 17...

Increasing focus on core enterprise strategy of secure and reliable app and data delivery

Providing FY16 GAAP diluted EPS outlook of $2.64 - $2.82; non-GAAP diluted EPS outlook of $4.40 - $4.50

Targeting 17 percent GAAP operating margin for 2016; at least 28 percent non-GAAP operating margin for 2016; targeting at least 30 percent non-GAAP operating margin for 2017

Announces plans to spin off GoTo businesses into separate company

In response to this update, analysts raised estimates yet again for this year and next. This analyst action pushed the stock back to the Zacks #1 Rank. And it didn't hurt that the company has delivered an earnings beat for several consecutive quarters, averaging a 22% positive surprise for the last four reports.

In fact, CTXS became a Zacks #1 -- for the first time in several quarters -- in early July when it was trading under $69. From there to the climb above $82 in late October, the #1 Rank was reiterated at least twice more as analysts either revised estimates upward and/or the company delivered another beat as they did on October 21.

Bear of the Day :

Nu Skin Enterprises ( NUS ) is another great example of a stock with strong downward earnings momentum that the Zacks Rank nailed perfectly and warned you to stay away from plenty early.

Although NUS had been a Zacks #4 Rank (Sell) quite often in the first quarter of 2015 when shares were trading near $60, it didn't become a #5 Rank (Strong Sell) until May after the company's first quarter report disappointed investors.

Since then, shares have plummeted from $51 to $31. And NUS has consistently been a #5 Rank during that drop, reminding investors and traders to keep selling, before and after their 3rd quarter report on October 29.

Here's why: the Zacks Detailed EPS estimates below tell the tale of persistent downward Earnings Estimate Revisions (EER) from analysts...

According to this data, the fall in this year's consensus EPS number from $3.58 to $2.88 is a 19.55% drop.

And next year's 70-cent cut to profit projections represents a 17.76% decline.

While this one-of-a-kind network marketing company may have a brighter future some day, in the near term investors should remain cautious. Just keep an eye on the Zacks Rank to let you know when the sun comes out again for NUS earnings momentum.

Additional content:

ChinaStock Roundup

According to China's General Administration of Customs, the world's second largest economy's imports fell 8.7% year-over-year, last month. Decline in imports indicated fall in prices of commodities including oil, iron ore and copper. It also reflected sluggish demand for basic materials. Exports also declined 6.8% in November compared to a year earlier. Separately, the country's trade surplus narrowed to $54.1 billion in November from $61.6 billion in October.

The CSI 300 lost 1.8%. Sub-indexes of material and energy stocks declined by a minimum of 2.7%. The Hang Seng moved 1.3% lower. The Hang Seng China Enterprises Index declined 1.4% following losses from insurance company stocks. The yuan dropped to its lowest level since Aug 2011 despite steps taken by the central bank last month to boost the currency.

The benchmark index slipped on Wednesday, losing 0.1%. Disappointing data on producer prices and a reduction in the reference rate of the yuan by the central bank led to the days' losses. The producer price index suffered a year-over-year decline of 5.9% in November, marginally lower than the estimated 6% loss. The consumer prices index posted a year-on-year increase of 1.5%, coming in ahead of estimates.

Meanwhile, China's central bank cut the onshore yuan's daily reference rate. This decision came after exports and forex reserves declined more than expected. The CSI 300 increased 0.4%. Consumer discretionary and financial stocks were the largest gainers for the day. The Hang Seng lost 0.3%. The H-share index declined 1.1% to its lowest level since September.

The Shanghai Composite Index moved 0.5% lower on Thursday following fears that China's economic transformation to a consumer and services oriented economy wasn't happening at a pace necessary to outweigh the slump in commodities and industrial goods. The benchmark index lost out on gains of nearly 0.9% made earlier in the day.

Materials and industrial stocks suffered the largest declines for the day. The CSI 300 lost 0.4%. A sub-index of industrial stocks within the index lost 1.1%. The Hang Seng moved 0.5% lower, while the Hang Seng China Enterprises Index declined 1.1%.

Stocks in the News

Baidu Inc. ( BIDU ) has entered into a strategic partnership with e-commerce giant Amazon.com ( AMZN ) to become the default search engine for the latter's Kindle and Fire hardware platforms operating in China

Alibaba 's relationship with Yahoo! remained unchanged following an announcement made by the latter this week. Yahoo! said that it won't spin-off of its stake in China's Internet giant due to the potential tax hits.

Instead, Yahoo!'s board said they would begin working to spin off the core business and their Yahoo! Japan stake. This would leave only the company's stake in Alibaba as part of the "YHOO" stock. Yahoo!'s stake in BABA is worth an estimated $35 billion.

JA Solar Holdings Co., Ltd. ( JASO ) said that it has received a contract from Zimbabwe per which it will supply 100 MW PV modules. These modules will be utilized in one of three ground mounted solar power plants in the country. The solar power company will provide modules for the project being constructed by China MCC17 Group.

Located in Munyati, the project is expected to be completed by end 2017. China MCC17 Group has selected JA Solar after securing the bid for this facility. The order for PV modules received by JA Solar is worth $179 million.

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 >>

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. Subscribe to this free newsletter today . Find out What is happening in the stock market today on zacks.com.

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

CITRIX SYS INC (CTXS): Free Stock Analysis Report

NU SKIN ENTERP (NUS): Free Stock Analysis Report

BAIDU INC (BIDU): Free Stock Analysis Report

AMAZON.COM INC (AMZN): Free Stock Analysis Report

JA SOLAR HOLDGS (JASO): Free Stock Analysis Report

To read this article on Zacks.com click here.

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


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

In This Story

AMZN BIDU CTXS NUS

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More