For Immediate Release
Chicago, IL - September 27, 2016 - Zacks Equity Research highlights CryoLife ( NYSE: CRY - Free Report ) as the Bull of the Day and Build-A-Bear ( NYSE: BBW - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on theSanmina Corporation ( NASDAQ: SANM- Free Report) and Vishay Intertechnology Inc ( NYSE: VSH- Free Report) .
Here is a synopsis of all four stocks:
While the name may bring to mind some sort of futuristic technology, today's Bull of the Day probably doesn't do what you think it does. Though it is in the medical instruments field, it's got nothing to do with freezing tissues. According to its investor relations page, CryoLife ( NYSE: CRY - Free Report ) is a leader in medical device manufacturing and distribution and in the processing and distribution of implantable living human tissues for use in cardiac and vascular surgeries. It operates throughout the U.S. and internationally. CryoLife manufactures and distributes BioGlue® Surgical Adhesive, an FDA-approved adjunct to sutures and staples for use in adult patients in open surgical repair of large vessels. BioGlue is also CE marked in Europe for use in soft tissue repair and has received additional marketing approvals in several other countries throughout the world. CryoLife's BioFoam® Surgical Matrix is CE marked in Europe for use as an adjunct to hemostasis in cardiovascular surgery and on abdominal parenchymal tissues (liver and spleen) when control of bleeding by ligature or conventional methods is ineffective or impractical. CryoLife distributes PerClot®, a powdered hemostat, in Europe and other select international countries.
A big reason for the Zacks Rank #1 (Strong Buy) here is three analysts have increased their earnings estimates for the current year while 2 have done so for next year. The bullish sentiment has pushed up the Zacks Consensus Estimate for the current year from 21 cents to 34 cents and increased next year's number from 31 cents to 38 cents.
The stock has been on an absolute tear since breaking out on earnings the end of July. Since then, the price has gone from $12 to over $18. The selling pressure over the last couple of days has only brought shares back to $17.82, keeping the longer term bullish trend line very much intact. The commodity channel index has come down from an overbought position to just above the zero line at 24.31.
Today's Bear of the Day is Zacks Rank #5 (Strong Sell) Build-A-Bear ( NYSE: BBW - Free Report ). Build-A-Bear Workshop, Inc. operates as a specialty retailer of plush animals and related products. The company operates in three segments: Direct-to-Consumer, International Franchising, and Commercial. Its merchandise comprises approximately 30 styles of stuffed animals; clothing, shoes, and accessories for the stuffed animals; and other toy and novelty items. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce Websites, buildabear.com and buildabear.co.uk . As of January 2, 2016, it operated 329 owned stores in the United States, Canada, the United Kingdom, Ireland, and Denmark; and 77 franchised stores in Europe, Asia, Australia, Africa, the Middle East, and Mexico. The company has strategic relationships with Disney, DreamWorks Animation, and Hasbro. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in St. Louis, Missouri.
A quick look at our price, consensus and EPS surprise chart paints a perfect picture of why this stock has the rank is does. After several years of positive earnings estimate revisions and growth in bottom line EPS, the company has seen earnings stagnate since 2015. A couple of huge earnings misses did little to help the bull case here. This year alone estimates have come down sharply for FY2016 and FY2017 earnings.
Over the last sixty days, 2 analysts have dropped their earnings estimates for the current year while only one has increased their number. The bearish sentiment has dropped the Zacks Consensus Estimate from 89 cents to 83 cents for the current year. A big chunk of that is due to current quarter estimates coming down from 22 cents to 11 cents. Last quarter the company reported a loss of 28 cents, in line with analyst estimates.
Cheap - and Fundamentally Strong - Tech Stocks to Buy Now
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This lets one easily choose ideal metrics. Screens are effective because they sift out bad stocks and only keep the cream of the crop in. It isn't always easy to create an effective screen. Our Zacks Premium Screens have helped with this, bringing profits to many investors over time. Our predefined criteria are chosen carefully to capture special kinds of companies.
Today, we've dug up two technology stocks using one of our premium screens known as "Discount Fundamental Strength". Some of the metrics of this screen requires a stock to have an average daily trading volume of at least 100,000 shares over the last 20 days, a debt-to-equity under 0.5, and a price-to-sales under one. We added an additional criterion which allowed us to screen for stocks from the technology sector. Without any further ado, let's take a look at what our modified premium screen has found for us today.
Sanmina provides electronics contract manufacturing services. It focuses on engineering and fabricating complex components. SANM also provides end-to-end supply chain solutions to OEMs (original equipment manufacturers). Sanmina's stock is a Zacks Rank #3 (Hold) and it gets an "A" for Growth and Value in our Style Scores.
Sanmina looks like a viable investment choice because of its well-roundedness across fundamental financial metrics. The company's current ratio of 1.64 shows that SANM is relatively liquid, and its debt-to-equity of 0.28 shows that it is not very leveraged either. One especially promising trait of Sanmina's is its exceptional profit margins compared to the industry. SANM has a trailing twelve month net margin of 6.24%, and this far surpasses the industry's average net margin of 2.47%.
In spite of looking like a strong company within its industry, SANM looks quite cheap across a range of valuation metrics. Sanmina has a forward PE of 12.48, and its PEG stands at just 0.71. A PEG under one could suggest that there is value present. SANM also has a price-to-sales of 0.32, and this further supports the notion that this stock may be undervalued. Sanmina has surpassed our EPS consensus estimate in two of the last three quarters, and t is slated to release its next quarterly earnings report in the beginning of November.
Vishay Intertechnology is a manufacturer and supplier of discrete passive and discrete active electronic components such as resistors, capacitors, inductors, diodes, and transistors. Vishay Intertechnology is a Zacks Rank #1 (Strong Buy) and it has a market cap of $2 billion.
Like Sanmina, VSH is solid across important valuation metrics. It has a current ratio and debt-to-equity of 4.18 and 0.2 respectively. The corporation's EPS is projected to grow by 23.61% this year, and over the last 3 months our current year EPS consensus has grown by 4.7% to $0.89. The company has topped our EPS estimate in each of the last four quarters, and in that span of time it has beaten our consensus by an average of 19% per quarter.
Vishay Intertechnology's stock seems to be pretty cheap right now. The firm's price-to-sales and PEG come out to just 0.9 and 0.89 respectively. Both of these metrics are under one, and this helps in supporting an argument for why VSH is a bargain opportunity. VSH also has a price-to-book of 1.25 and a forward PE of 15.71. The corporation is expected to release its next quarterly earnings report in early November.
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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.
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