The Zacks Analyst Blog Highlights: SanDisk, Intel, Cirrus Logic, Plexus and Dow Chemical

Zacks

For Immediate Release
 
Chicago, IL – October 16, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the SanDisk Corp. (SNDK-Free Report), Intel (INTC-Free Report), Cirrus Logic Inc. (CRUS-Free Report), Plexus Corp. (PLXS-Free Report) and The Dow Chemical Company (DOW-Free Report).
 
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Here are highlights from Tuesday’s Analyst Blog:

Can SanDisk (SNDK) Keep the Earnings Streak Alive?

Flash storage solutions provider SanDisk Corp. (SNDK-Free Report) is set to report third-quarter 2013 results on Oct 16. Last quarter, it posted a 29.6% positive surprise. Let’s see how things are shaping up for this announcement.

Growth Factors This Past Quarter

SanDisk posted solid second-quarter results with both its top and bottom lines surpassing the Zacks Consensus Estimate. Revenues from original equipment manufacturers (OEMs) and Retail were strong, aided by higher mobile embedded and SSD sales. SanDisk also provided an encouraging 2013 guidance, citing growing demand for solid disk drives (SSDs) and ramp of its 19-nm technology.
Additionally, the company recently introduced an enhanced version of iNAND Extreme flash drive, compatible with Intel’s (INTC-Free Report) new Atom Z3000 processors, also known as ‘Bay Trail’ for tablets.

We believe that the synergies with Intel’s Atom processors and its greater adoption rate will provide better stability to SanDisk’s revenue stream. We are also positive about SanDisk’s focus on mobile-embedded products (as several new smartphones and tablets, Ultrabooks and other end-client PCs running on SSDs are slated for launch).

Earnings Whispers?

Our proven model does not conclusively show that SanDisk will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.22. Hence, the difference is 0.00%.

Zacks Rank #3 (Hold): SanDisk’s Zacks Rank #3 (Hold) when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter: 

Cirrus Logic Inc. (CRUS-Free Report), with Earnings ESP of +7.69% and a Zacks Rank #1 (Strong Buy).

Plexus Corp. (PLXS-Free Report), with Earnings ESP of +1.49% and a Zacks Rank #1 (Strong Buy).
 
Dow Solutions to Avoid Food Waste

The Dow Chemical Company (DOW-Free Report) announced that it will be providing security and food packaging solutions to address the problem of food wastage. As per the Food and Agriculture Organization (:FAO) of the United Nations, more than 1.3 billion tons of food and $750 billion are wasted every year.

On FAO’s World Food Day on Oct 16, Dow provided solutions to avoid wastage of food through interactive content about food waste and creation of sustainable food systems, through its website and social media channels. Dow stated that it is working to provide innovative solutions at all levels of the supply chain to support the growth in food production and conservation required to feed the world’s growing population.

Dow is working with the farmers so that food can be protected at the origin of the supply chain. Dow will create drip-irrigation systems that deliver specific amounts of water directly to crop roots aiding growth while significantly reducing water waste. Dow has also introduced post-harvest protection products and services which help the growers, packers, shippers, exporters, and importers to provide high-quality fresh fruit and vegetables to consumers.

The next phase that food undergoes is processing according to the tastes and the needs of the people. Dow’s food processing solutions allow the removal of allergens such as gluten thus suiting consumer taste and matching their diet requirements. Dow’s processing system also assists producers with products that are easy to handle and have greater productivity through methods which utilize superior sanitation, and energy savings.

Dow’s resins in flexible stand-up pouches ensure packaging efficiency by protecting constituents such as soups, baby food and baking ingredients against spoiling and also require less material for packaging. These lightweight packages also allow more food in the innovative packages to fit into each truckload, so that the transporting vehicle is able to use less fuel to distribute the food -- which in turn enables reduction in carbon footprints.

Dow Chemical currently holds a Zacks Rank #3 (Hold).

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