Valeant Pharma, Lindsay, Intel, Google and Microsoft highlighted as Zacks Bull and Bear of the Day - Press Releases

Chicago, IL - April 14, 2015- Zacks Equity Research highlights Valeant Pharma ( VRX - Free Report ) as the Bull of the Day and Lindsay Corp ( LNN - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Intel ( INTC - Free Report ), Google ( GOOGL - Free Report ) and Microsoft ( MSFT - Free Report ).

Here is a synopsis of all five stocks:

Bull of the Day :

Valeant Pharma ( VRX - Free Report ) has seen its estimates increase due to the recent acquisition of Salix Pharmaceuticals. It is expected that the acquisition will push annual revenues up to about $10 billion, which would be a +20% increase in revenues year over year for 2015. Also, organic growth is expected to be in the double digits over the near term. This combination organic and inorganic growth has made Valeant Pharma the Zacks Bull of the Day.

This Zacks Rank #1 (Strong Buy) stock is a pharmaceutical company that develops manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology, and branded generics. The company produces medicines that meet the special health problems of patients.

It is expected that the purchase of Salix Pharmaceuticals will potentially produce double digit growth in their GI (gastrointestinal) business. Further, Valeant has a strong new product cycle which will help with their organic growth in the near and long terms. Finally, their drug Xifaxan 550, for hepatic encephalopathy, has a PDUFA date of 5-27-15, and is expected to have a positive outcome. We estimate the approval for Xifaxan will be worth between $1.5 and $2 billion in annual sales by 2020.

Bear of the Day :

Lindsay Corp ( LNN - Free Report ) has seen margins contract due to a significant decrease in the irrigation market. Previously, high commodity prices have been a windfall for farmers who in-turn used the higher profits from their corn, wheat, soy, to purchase new irrigation systems for their fields. But with commodity prices plummeting, and farm income decreasing, irrigation systems are being put aside for a later date. These forces have caused Lindsay Corp to become the Zacks Bear of the Day.

This Zacks Rank #5 (Strong Sell) stock manufactures and markets irrigation equipment including; lateral move and hose reel irrigation systems and GrowSmart controls, all of which are used by farmers to increase or stabilize crop production while conserving water, energy, and labor. The company also manufactures and markets infrastructure products, crash cushions, and specialty barriers to improve motorists and highway worker safety.

Over the past 30 days, earnings estimates for Lindsay Corp have significantly declined for Q3 15, Q4 15, and FY 15; Q3 15 dropped from $1.17 to $0.76, Q4 15 decreased from $0.64 to $0.48, and FY 15 fell from $4.06 to $3.06. These declining estimates indicate that it will be a difficult second half of their fiscal year for Lindsay Corp.

Additional content:

Intel Earnings Preview: No Surprises in the Cards

Intel ( INTC - Free Report ) estimates have come down significantly since the company lowered its first quarter expectations. They now stand at 40 cents, matching the most accurate estimate and indicating an Earnings ESP of 0.0%.

Intel also carries a Zacks Rank #4 (Sell). Generally, stocks with Zacks Ranks of #1, #2 or #3 and positive ESP indicate a positive surprise while surprise prediction for sell-rated stocks (#4 and #5) is difficult irrespective of ESP.

We already know that the company is up against FX and PC market headwinds, which will continue to impact results this quarter. Let's see what the rest of the business is likely to do-


With mobile and PC merging this quarter, there could be some revenue offsets and definitely, margin pressure. The rest of the story may not change that much as transition to mobile and emerging markets continues. Intel will definitely feel any gains from stabilization in developed markets because of its strong market position, particularly at the enterprise.

Intel also has wins at Google's ( GOOGL - Free Report ) Chromebooks and Surface devices, so it is well fortified for the BYOD trend. Windows upgrades could grow into less of a catalyst as Microsoft ( MSFT - Free Report ) takes measures to make it more ubiquitous.

The server business is on track to benefit from Intel's strong product lineup and market position. Intel has been innovative on every front, building on both the cloud computing and HPC sides. This business is likely to remain extremely strong for Intel.

Internet of Things (IoT) should also see some progress this quarter with business improving as we move through the year as Intel continues to introduce new products and score customer wins. Intel's focus on China and on building relationships with Chinese players will come in very handy for its computing, mobile and IoT ambitions.

Gross Margin

The mid-point of guidance indicates a gross margin of 60% and Intel generally reports in line with its guidance. There are of course a few variables, including the mix shift to lower-end Atom devices and the subsidy it pays tablet makers for using its more expensive chips. While Intel has promised that the subsidy amount will come down this year, it will be interesting to see how the company intends to achieve this. Increased manufacturing of more routine processes in China could be part of the plan.

Returning Value

Both share repurchases and dividends may be expected to continue.


Intel may revise its capex expectations slightly, which it lowered to $10 billion after fourth-quarter results.

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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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VALEANT PHARMA (VRX): Free Stock Analysis Report

LINDSAY CORP (LNN): Free Stock Analysis Report

INTEL CORP (INTC): Free Stock Analysis Report

GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report

MICROSOFT CORP (MSFT): 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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