Zacks Equity Research highlights ON Semiconductor (Nasdaq: ONNN) as the Bull of the Day and Jones Soda Company (Nasdaq: JDSA) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Myriad Genetics, Inc. (Nasdaq: MYGN) and Avnet, Inc. (NYSE: AVT). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all four stocks:
Bull of the Day:
Our Bull of the Day recommendation is for ON Semiconductor (Nasdaq: ONNN). June quarter results slightly exceeded consensus estimates. Next quarter’s revenue guidance is for 3-6% growth. Backlog represents over 90% of next quarter’s revenue projection. The company has also begun to get significant revenue from its recent major purchase of LSI Logic’s Gresham, Oregon wafer facility, which has the potential to be a solid revenue driver. Despite reports of muted success from Microsoft Vista, we feel the stock is undervalued at these levels, and recommend investors buy the shares.
Bear of the Day:
Our Bear of the Day recommendation is for Jones Soda Company (Nasdaq: JDSA). In the most recent quarter, management lowered revenue growth outlook to the range of 30% to 40% from the earlier estimate in the 50%-range, primarily due to the timing issues related to the late shelving of the CSD product and a slower than planned launch of the concentrate products. As a result, the company did not achieve the targeted 25% in ACV (all commodity volume) by Memorial Day of 2007. Although management believes that the company can achieve 30% ACV by the end of the year, developments about the shelving space and the execution of new launches remain concerns.
Analyst Blog:
Myriad Genetics, Inc. (Nasdaq: MYGN) is a biopharmaceutical company that focuses on the development of diagnostic and therapeutic products. The company employs a variety of proprietary proteomic technologies to identify genes, their relative proteins and their pathways. Research in these areas has helped the company in developing drugs that prevent various diseases. From a research and development standpoint, we are optimistic about the future potential of Myriad. The growth of predictive medicine, several candidates in Alzheimer's disease and cancer lead us to be bullish on the stock. We maintain our Buy rating on Myriad.
Avnet, Inc.'s (NYSE: AVT) Q4 results came in above expectations and our estimates. Revenue of $4.24 billion was higher than our estimate of $4.20 billion and EPS [earnings per share] came in slightly ahead of our $0.80 estimate. Weak component sales in the quarter was largely offset by aggressive cost control and seasonal strength from the rapidly growing computing business. However, weaker component sales, mainly in Europe, impacted gross margins negatively, and we expect this trend to continue in the upcoming quarter. Forward guidance is for flat revenue growth in Q1 and significantly lower EPS range of $0.65-$0.69, reflecting seasonal weakness in Electronics Marketing [EM] in Europe and North America.
Get the full analysis of all four stocks by going to http://at.zacks.com/?id=2649.
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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