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Ultra Clean, Restoration Hardware and Texas Instruments highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL - January 25, 2017 - Zacks Equity Research highlights Ultra Clean (NASDAQ: UCTT - Free Report ) as the Bull of the Day and Restoration Hardware (NYSE: RH - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Texas Instruments ( NASDAQ: TXN - Free Report).

Here is a synopsis of all the three stocks:

Bull of the Day:

As the Aggressive Growth Stock Strategist at Zacks, I look for stocks with explosive growth potential. I leverage the Zacks Rank, a tool for finding the strongest earnings estimate revisions, to help me narrow down the stocks that I can choose from. One other tool I like to use is the Zacks Industry Rank. It tells me which industries are hotter than others.

For the Bull of the Day, I am adding a stock that is certainly hot, but also comes from a hot industry. It has a Zacks Rank #1 (Strong Buy) and has also showed some great revenue growth of late, something that I need to see in any aggressive growth selection I make.

Ultra Clean Holdings, Inc. Market Cap | Ultra Clean Holdings, Inc. Quote

Description

Ultra Clean (NASDAQ: UCTT - Free Report ) fits the bill on all of the above, but just what does the company do? Ultra Clean Holdings develops critical systems and subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries. Ultra Clean is headquartered in Hayward, California.

Bear of the Day :

RH is the new name for Restoration Hardware (NYSE: RH - Free Report ) which recently beat the Zacks Consensus Estimate for EPS and revenue, yet the stock is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day. Let's take a look at why that is the case.

Description

RH sells home furnishings. It offers products in various categories, such as furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and child and teen furnishings. As of October 29, 2016, it operated 85 retail galleries that include 51 legacy galleries, 6 larger format design galleries, 7 next generation design galleries, 1 RH modern gallery, and 5 RH baby & child galleries throughout the United States and Canada; 15 Waterworks showrooms in the United States and the United Kingdom; and 28 outlet stores. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1979 and is headquartered in Corte Madera, California.

Earnings Beats

You don't normally see a company beat the estimate like RH has done in each of the last two quarters and see them being the Bear of the Day. As the aggressive growth strategist at Zacks, I search far and wide for revenue beats like RH has posted. The July 2016 quarter saw a 5% positive revenue surprise and the October 2016 quarter saw a 3% positive revenue surprise.

Estimates

The reason that RH is a Zacks Rank #5 (Strong Sell) is the downward revision to earnings estimates. The Zacks Consensus Estimate for 2016 fell from $1.63 in November to $1.24 in December and has remained there in January.

The Zacks Consensus Estimate for 2017 slid from $2.34 in November to $2.01 in December and then kicked lower again to $1.99 in January.

Additional content:

Texas Instruments Posts Q4 Earnings Beat

Texas Instruments ( NASDAQ: TXN - Free Report) just released its fourth-quarter fiscal 2016 earnings results, posting earnings of 88 cents per share and revenue of $3.414 billion. Currently, TXN is a Zacks Rank #3 (Hold), and is down 1.14% to $76.20 per share in trading shortly after its earnings report was released.

Beat earnings estimates . The company posted earnings of 88 cents per share, surpassing our Zacks Consensus Estimate of 81 cents. Thus number excludes 14 cents from non-recurring items.

Beat revenue estimates . The company saw revenue figures of $3.414 billion, beating our consensus estimate of $3.307 billion.

Gross margin for the quarter was 62.5%.

The company said that Analog revenue grew 10% and Embedded Processing grew 6%.

"Revenue increased 7 percent from the same quarter a year ago, as demand for our products remained strong in the automotive market. The improvement we saw in the third quarter for the industrial market continued. Demand in the personal electronics market was down slightly from a year ago," said CEO Rich Templeton.

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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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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.

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Ultra Clean Holdings, Inc. (UCTT): Free Stock Analysis Report

Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report

Texas Instruments Incorporated (TXN): Free Stock Analysis Report

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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.

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