Alcobra, Jazz Pharmaceuticals, Nippon Telecom and Toyota Motor highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – August 25, 2015 – Zacks Equity Research highlights Alcobra (ADHD) as the Bull of the Day and Jazz Pharmaceuticals (JAZZ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Nippon Telecom (NTT) and Toyota Motor (TM).          
           
Here is a synopsis of all four stocks:
 
Bull of the Day:

On one hand, I’ve got to be crazy to run out here and give stock picks on a day like today. I mean, come on Dave, it’s “Black Monday” for crying out loud! Well as far as I can tell, we’re still four horseman short of the apocalypse so you can keep that “Black Monday” stuff. The only thing black about this Monday is the Retro VI’s on my feet. This is “Green Monday” as far as I’m concerned. If you had the courage to step in and buy the dip you’d be smiling all day.
 
I’m smiling now putting Alcobra (ADHD) as my Bull of the Day. I’ll give you a chance to guess what kind of medication they make. Wait, what was I talking about again? Just kidding. Alcobra is a biopharmaceutical company that focuses on the development and commercialization of drugs to treat attention deficit hyperactivity disorder.
 
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Analysts have become increasingly bullish on the stock over the last week. The bullish activity by three different analysts has increased the Zacks Consensus Estimate for the current quarter, next quarter, the current year and next year. The most dramatic move occurred in the current year numbers. The recent earnings estimate increases have pushed the Zacks Consensus Estimate from a $1.24 loss to a $1.15 loss.
 
Bear of the Day:
 
It’s easy to sit here and write a Bear of the Day today. Pretty much every stock on the board is down and the weak stocks are really catching a beat down. This is the type of event that only happens once every few years or so. The bad stocks in this market should be avoided like the plague. This is when the real stock pickers shine and the Vanguard guys get really quiet.
 
My pick today isn’t based on any personal vendetta or any highly researched dooming thesis. For this stock, it’s all about the Zacks Rank and the Momentum Style Score. Jazz Pharmaceuticals (JAZZ) is a Zacks Rank #5 (Strong Sell) stock that’s got a Momentum Style Score of “D” and a Value Score of “F.” That tells me you should probably look elsewhere in this market to pick up a few bucks.
 
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Analysts have closed the door on this stock too. Over the last 30 days, estimates have plummeted for the current quarter, next quarter, current year and next year. The most dramatic drop has to be in the current year estimates. Our Zacks Consensus Estimate has dropped from $8.68 all the way down to $5.84. That’s more than next year’s drop where the numbers went from $10.72 to $8.84. While the growth may still be there, the big dip meant a big hit to the stock price.
 
Additional content:

“Black Monday” Opens Trading Week

The Monday open to this Global Week Ahead is awful. Over in Asia, China’s official press group already labeled it “Black Monday.”

The Financial Times in London shared this thought. The People’s Bank of China (PBoC) defied hopes of policy action over the weekend. They stopped short of cutting interest rates or injecting liquidity. A lack of action heightened concerns Beijing is no longer staking its credibility on bolstering the market.

Here’s the China damage estimate-- 


• The Shanghai Composite fell up to -8.5%, erasing all 2015 gains. It managed to move up off lows to post losses of -7.3%.

• The tech-heavy Shenzhen Composite was down -7.6%.

• Hong Kong’s Hang Seng index was down -4.7%, extending its August decline to nearly -13%.

The FT also shared that European stocks benchmarks were on course for their worst monthly declines since October 2008, the height of the financial crisis.

• The Europe-wide FTSE Eurofirst 300 was down -3%, with every single one of its constituents falling.

• Frankfurt’s Xetra Dax 30 was losing -3.1% and under the 10,000-points mark for the first time since January.

• The FTSE 100 in London, which has a high proportion of resource stocks exposed to China, is -2.9% weaker.

• In Paris, the CAC 40 was down -3.5%.

U.S. share benchmarks will follow suit. WTI Oil broke $39 a barrel last I looked.  The U.S. 10-year Treasury broke 2.0% intraday.

Do global investors see Central Bank Interventions? Will they look to calm global markets? — Only if policy actions can be coordinated would they help.

Jackson Hole, WY is where most major central bankers will find themselves at towards end of this week. That is a nice spot to gather, coordinate action, and hold the needed central bank press conferences. What a use for the backdrop of the Grand Tetons!

As for stocks, yours will be marked down hard after Monday’s sell-off.
 
Looking for defensives? It’s too late. Nonetheless, Nippon Telecom (NTT) has a Zacks #1 Rank at the moment.  Toyota Motor (TM) also has a Zacks #1 Rank.

I doubt a single global stock bull benefitted during this panicked sell-off.  After the panic subsides in a few days time, these two Japanese stalwarts might be worth a look.

Here is the Global Week Ahead in terms of fundamental indicators:

Fundamentals take a back seat -- to stock market punishment and the call for central bank action this week.

On Monday, Japan’s final leading indicator was 106.5, down from a prior 107.2.

In Mexico, the bi-weekly CPI looks to be 2.69% y/y.

On Tuesday, Germany’s final GDP data looks to be 1.6% y/y, in line with preliminary estimates.

Germany’s IFO business climate index looks to be 107.6, below the prior 108, the IFO current conditions looks to be stable at 113.9, and the expectations index looks to be 102.

South Africa GDP growth looks to be +2.0%. The prior was a +2.1% preliminary reading.

The S&P Case Shiller Home Price Index looks to be +5.1% y/y.  

The Congressional Budget Office releases a budget update.
 
U.S. consumer confidence looks to rise to 93.4, up from 90.9 (this survey was obviously done before the big stock correction).

New Home Sales in the U.S. look to be 510K, up from 482K.

On Wednesday, the U.S durable goods orders data is what to watch for.  The Durables ex-transports could be +0.4% m/m, while the topline number is -0.4%.

The Fed’s Dudley participates in a Press Briefing.

On Thursday, the U.K.’s Nationwide House Price Index comes out.  Look for a decline to +3.1% y/y, after a +3.5% prior reading.

The French INSEE manufacturing confidence index comes out.  Look for an line 102.

The 2nd estimate for U.S. GDP comes out.  The market thinks it moves to +3.2% y/y after the latest revisions.  The preliminary reading was 2.3% y/y.

U.S. initial claims looks strong at 275K.

Japans’ unemployment rate looks to be 3.4%.

The Kansas City Fed Hosts its symposium in Wyoming (until the 29th).

On Friday, the latest French PPI comes out.  Look for -1.9% y/y.

The U.K.’s 2nd estimate for GDP comes out.  Look for an in line +2.6% y/y.

A host of Eurozone indicators come out.  The most watched is Industrial Sentiment.  It looks to be -3.2, down from -2.9% in a prior reading.

The preliminary HICP German GDP read on consumer inflation comes out.  Look for a paltry in line +0.1% y/y rate.

U.S. Personal Income, and Personal Spending data come out.  Look for a +0.4% m/m rate out of both.

The University of Michigan sentiment index hits markets.  Look for a 93.1 reading.

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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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ALCOBRA LTD (ADHD): Free Stock Analysis Report
 
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report
 
NIPPON TELE-ADR (NTT): Free Stock Analysis Report
 
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
 
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